Page 1 First Session, Forty-fourth Parliament, 70-71 Elizabeth II – 1 Charles III, 2021-2022-2023 STATUTES OF CANADA 2023 CHAPTER 26 An Act to implement certain provisions of the budget tabled in Parliament on March 28, 2023 ASSENTED TO JUNE 22, 2023 BILL C-47 Page 2 RECOMMENDATION Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the cir- cumstances, in the manner and for the purposes set out in a measure entitled “An Act to implement certain provisions of the budget tabled in Parliament on March 28, 2023”. SUMMARY Part 1 implements certain measures in respect of the Income Tax Act and the Income Tax Regulations by (a) enabling the Canada Revenue Agency (CRA) to use elec- tronic certification of tax and information returns and requir- ing taxpayers to file electronically in certain circumstances; (b) doubling the maximum deduction for tradespeople’s tools from $500 to $1,000; (c) providing that any gain on the disposition of a right to ac- quire Canadian housing property within a one-year period of its acquisition is treated as business income; (d) excluding from a taxpayer’s income certain benefits for Canadian Forces members, veterans and their spouses or common-law partners; (e) exempting from taxation any income earned by the Band Class Settlement Trust in accordance with section 24.05 of the Settlement Agreement entered into on January 18, 2023 relating to the attendance of day scholars at residential schools; (f) providing an additional payment of the Goods and Ser- vices Tax/Harmonized Sales Tax (GST/HST) credit equal to double the amount of the regular January 2023 payment; (g) providing for automatic, quarterly advance payments of the Canada Workers Benefit; (h) allowing divorced and separated spouses to open joint Registered Educational Savings Plans and increasing educa- tional assistance amounts under those plans; (i) extending, by three years, the ability of a qualifying family member to be the plan holder of an individual’s Registered Disability Savings Plan and expanding the definition of “qual- ifying family member” to include a sister or a brother of the individual; (j) allowing defined contribution registered pension plans to correct contribution errors and requiring that the contribu- tions or refunds are reported to the CRA for the purpose of correcting the RRSP deduction limit; (k) modifying reporting requirements in respect of reportable transactions, introducing reporting requirements for notifi- able transactions and providing reporting requirements with respect to uncertain tax treatments, as well as extending the reassessment periods applicable to those transactions and Available on the House of Commons website at the following address: www.ourcommons.ca 2021-2022-2023 Page 3 creating or modifying penalties for non-compliance with those requirements; (l) allowing the CRA to share taxpayer information for the purposes of the Canadian Dental Care Plan; (m) expanding the definition of “dividend rental arrange- ment” to include “specified hedging transactions” carried out in whole or in part by registered securities dealers; (n) implementing the Model Reporting Rules for Digital Plat- forms developed by the Organisation for Economic Co-opera- tion and Development; (o) requiring annual reporting by financial institutions of the fair market value of registered retirement savings plans and registered retirement income funds; (p) expanding the permissible borrowing by defined benefit pension plans; and (q) implementing a number of technical amendments to cor- rect mistakes or inconsistencies and to better align the law with its intended policy objectives. It also makes related and consequential amendments to the Ex- cise Tax Act, the Tax Rebate Discounting Act, the Air Travellers Security Charge Act, the Excise Act, 2001, Part 1 of the Green- house Gas Pollution Pricing Act and the Electronic Filing and Provision of Information (GST/HST) Regulations. Part 2 implements certain measures in respect of the Excise Tax Act and a related text by (a) clarifying that the international transportation of money benefits from Goods and Services Tax/Harmonized Sales Tax (GST/HST) relief and other special rules in the same manner as a service of internationally transporting other kinds of freight; (b) permitting a pension entity, in specific circumstances, to claim the pension entity rebate or an input tax credit, or to make the pension entity rebate election, after the end of the two-year limitation period; (c) specifying that cryptoasset mining is generally not con- sidered a supply for GST/HST purposes; and (d) ensuring that payment card clearing services are exclud- ed from the definition “financial service” under the GST/HST legislation. Part 3 amends the Excise Act, the Excise Act, 2001 and the Air Travellers Security Charge Act in order to implement two mea- sures. Division 1 of Part 3 amends the Excise Act and the Excise Act, 2001 in order to temporarily cap the inflation adjustment for ex- cise duties on beer, spirits and wine at two per cent, for one year only, as of April 1, 2023. Division 2 of Part 3 amends the Air Travellers Security Charge Act to increase the air travellers security charge that is applicable to air travel that includes a chargeable emplanement after April 2024 and for which any payment is made after April 2024. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 SUMMARY Page 4 Part 4 enacts and amends several Acts in order to implement various measures. Division 1 of Part 4 amends the Bank Act to strengthen the regime for dealing with complaints against banks and authorized foreign banks by, among other things, providing for the designa- tion of a not-for-profit body corporate to be the sole external complaints body. It also makes consequential amendments to the Financial Consumer Agency of Canada Act and related amendments to the Financial Consumer Protection Framework Regulations. Division 2 of Part 4 amends the Pension Benefits Standards Act, 1985 to, among other things, provide for variable life benefits under a defined contribution provision of a pension plan and amends the Pooled Registered Pension Plans Act to, among oth- er things, provide for variable life payments under pooled regis- tered pension plans. It also makes a consequential amendment to the Canadian Human Rights Act. Division 3 of Part 4 contains measures that are related to money laundering and to digital assets and other measures. Subdivision A of Division 3 amends the Proceeds of Crime (Mon- ey Laundering) and Terrorist Financing Act to, among other things, (a) require persons or entities referred to in section 5 of that Act to report to the Financial Transactions and Reports Analy- sis Centre of Canada information that is related to a disclo- sure made under the Special Economic Measures Act or the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law); (b) strengthen the registration framework for persons or enti- ties referred in paragraphs 5(h) and (h.1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, which are often referred to as money services businesses; (c) create two new offences relating to persons or entities who engage in activities for which they are not registered un- der that Act and the structuring of financial transactions un- dertaken to avoid reporting obligations under that Act, as well as a new offence relating to reprisals by employers against employees who fulfill obligations under that Act; (d) facilitate the sharing, between the Minister of Finance, the Office of the Superintendent of Financial Institutions and the Financial Transactions and Reports Analysis Centre of Canada, of information that relates to their respective man- dates; and (e) authorize the Minister of Finance to issue directives to persons and entities referred in section 5 of that Act in re- spect of risks relating to the financing of threats to the securi- ty of Canada. Subdivision A also amends the Budget Implementation Act, 2021, No. 1 in relation to the Proceeds of Crime (Money Launder- ing) and Terrorist Financing Act. Subdivision B of Division 3 amends the Criminal Code to provide for a new warrant authorizing a peace officer or other person named in the warrant to search for and seize digital assets, in- cluding virtual currency, as well as to expand the list of offences on the basis of which an examination of information obtained by the Minister of National Revenue under various tax statutes may 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 SUMMARY Page 5 be authorized. The subdivision also makes related amendments to other Acts. Division 4 of Part 4 amends the Customs Tariff to extend the ex- piry date of the General Preferential Tariff and Least Developed Country Tariff to December 31, 2034 and to create a new General Preferential Tariff Plus tariff treatment that will expire on the same date. The Division also aligns direct shipment require- ments for tariff treatments under that Act with those that apply to free trade agreements. Division 5 of Part 4 amends the Customs Tariff to remove Be- larus and Russia from the List of Countries entitled to Most- Favoured-Nation tariff treatment. Division 6 of Part 4 allows the Bank of Canada to apply, despite sections 27 and 27.1 of the Bank of Canada Act, any of its ascer- tained surplus to its retained earnings until its retained earnings are equal to zero or the ascertained surplus applied to its re- tained earnings is equal to the losses it incurred from the pur- chase of securities as part of the Government of Canada Bond Purchase Program. Division 7 of Part 4 enacts the Canada Innovation Corporation Act. That Act continues the Canada Innovation Corporation, which was established under another Act, as a parent Crown corporation, sets out the Corporation’s purpose to maximize business investment in research and development across all sec- tors of the economy and in all regions of Canada to promote in- novation-driven economic growth and includes transitional pro- visions. The Division also makes consequential and related amendments to other Acts. Division 8 of Part 4 amends the Federal-Provincial Fiscal Ar- rangements Act to authorize additional payments to the provinces and territories. Division 9 of Part 4 amends the Federal-Provincial Fiscal Ar- rangements Act to renew the authority to make Equalization and Territorial Formula Financing payments for another five-year pe- riod beginning on April 1, 2024 and makes a technical change to improve the accuracy of the programs. It also makes a technical change to the calculation of fiscal stabilization payments. Finally, it provides for the publication of the details of all amounts autho- rized to be paid under that Act. Division 10 of Part 4 amends the Special Economic Measures Act, the Proceeds of Crime (Money Laundering) and Terrorist Fi- nancing Act and the Justice for Victims of Corrupt Foreign Offi- cials Act (Sergei Magnitsky Law) to strengthen Canada’s ability to take economic measures against certain persons. Division 11 of Part 4 amends the Privileges and Immunities (North Atlantic Treaty Organisation) Act to, among other things, enable the Paris Protocol to be implemented in Canada. Division 12 of Part 4 amends the Service Fees Act to, among oth- er things, clarify the definition “fee”, exempt certain fees from the application of that Act, make certain exceptions in that Act applicable only with the approval of the President of the Trea- sury Board, make certain changes to the annual adjustment pro- visions and provide authority for the President of the Treasury Board to amend the regulations made under section 22 of that Act by taking into account the factors established by regulations. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 SUMMARY Page 6 It also amends section 25.1 of the Canadian Food Inspection Agency Act to provide for the application of sections 16 to 18 of the Service Fees Act to low-materiality fees, within the meaning of the Service Fees Act, that are fixed under section 24 or 25 of the Canadian Food Inspection Agency Act. Division 13 of Part 4 amends the Canada Pension Plan to allow the Minister of National Revenue to make available information to the Minister of Employment and Social Development that is necessary for the purpose of policy analysis, research or evalua- tion related to the administration of that Act. Division 14 of Part 4 amends the Department of Employment and Social Development Act to grant the Minister of Employ- ment and Social Development the authority to collect and use Social Insurance Numbers for the purposes of administering or enforcing any Act, program or activity in respect of which the ad- ministration or enforcement is the responsibility of the Minister. Division 15 of Part 4 amends the Canada Labour Code in respect of leave related to the death or disappearance of a child to, among other things, increase the maximum length of that leave from 104 weeks to 156 weeks and to repeal paragraph 206.5(4)(b) of that Act. Division 16 of Part 4 amends the Immigration and Refugee Pro- tection Act to provide that a claim for refugee protection made by a person inside Canada must be made in person and, with re- gard to a claim made by the person other than at a port of entry, that the Minister of Citizenship and Immigration may specify the documents and information to be provided and the form and manner in which they are to be provided. Division 17 of Part 4 amends the Immigration and Refugee Pro- tection Act to clarify that the Minister of Citizenship and Immi- gration may give instructions in respect of an application to sponsor a person who applies for a visa as a Convention refugee, within the meaning of that Act, or as a person in similar circumstances. Division 18 of Part 4 amends the College of Immigration and Citi- zenship Consultants Act to, among other things, (a) provide that the College of Immigration and Citizenship Consultants may seek an order authorizing it to administer the property of any licensee of the College who is not able to perform their activities as an immigration and citizenship consultant; (b) extend immunity against proceedings for damages to di- rectors, employees and agents and mandataries of the Col- lege, among others; (c) authorize the College to enter into information-sharing agreements or arrangements with any entity, including feder- al or provincial government institutions; and (d) expand the areas in respect of which the Governor in Council may authorize the College to make by-laws. The Division also makes related amendments to the Citizenship Act and the Immigration and Refugee Protection Act to clarify that any person who is the subject of a notice of violation issued under either of those Acts has the right to request a review of the notice or the administrative monetary penalty set out in the notice. Division 19 of Part 4 amends the Citizenship Act to, among other things, (a) grant the Minister responsible for the administration and enforcement of that Act the power to collect biometric infor- mation from persons who make an application under that Act — and to use, verify, retain and disclose that information — in accordance with the regulations; 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 SUMMARY Page 7 (b) authorize that Minister to administer and enforce that Act using electronic means, including by using an automated sys- tem; and (c) grant that Minister the power to make regulations requir- ing persons who make an application or who provide docu- ments, information or evidence under that Act to do so using electronic means. Division 20 of Part 4 amends the Yukon Act to authorize the Min- ister of Northern Affairs to take any measures on certain public real property that the Minister considers necessary to prevent, counteract, mitigate or remedy any adverse effect on persons, property or the environment. Subdivision A of Division 21 of Part 4 amends the Marine Liabili- ty Act to, among other things, (a) increase the maximum liability for certain claims involv- ing a ship of less than 300 gross tonnage; (b) establish the maximum liability for claims involving air cushion vehicles; (c) remove all references to the Hamburg Rules; (d) extend the application of the International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001 to non- seagoing vessels; (e) provide for public notice requirements relating to the con- stitution of limitation funds under that Act; (f) clarify that the owner of a ship is liable for economic loss related to fishing, hunting, trapping or harvesting suffered by an Indigenous group, community or people or suffered by a member of such a group, community or people; and (g) expand the compensation regime of the Ship-source Oil Pollution Fund to include certain future losses. Subdivision B of Division 21 amends the Canada Shipping Act, 2001 to, among other things, (a) expand the application of Part 1 of that Act in relation to certain pleasure craft; (b) expand the exemption powers of the Minister of Trans- port and the Minister of Fisheries and Oceans; (c) allow the owner of a Canadian vessel to enter into an ar- rangement with a qualified person under which that person is the authorized representative of the vessel; (d) give the Marine Technical Review Board jurisdiction to make decisions on applications for exemptions from interim orders; (e) authorize the Governor in Council to incorporate by refer- ence in certain regulations material that the Minister of Trans- port produces; (f) broaden the Governor in Council’s power respecting fees, charges, costs or expenses to be paid in relation to the ad- ministration and enforcement of matters under that Act for which the Minister of Transport is responsible; 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 SUMMARY Page 8 (g) increase the maximum amount of fines for certain of- fences; (h) provide authority, in certain circumstances, for the Chief Registrar to refuse to issue a certificate of registry and for the Minister of Transport to refuse to issue a pleasure craft li- cence; (i) authorize the Governor in Council to make regulations re- specting emergency services; (j) authorize the Minister of Transport to, among other things, (i) direct a master or crew member to cease operations, (ii) authorize the Deputy Minister of Transport to make in- terim orders in response to risks to marine safety or to the marine environment, and (iii) direct a port authority or a person in charge of a port authority or place to authorize vessels to proceed to a place selected by the Minister; and (k) permit designating as violations the contravention of cer- tain provisions of Parts 5 and 10 of that Act and the regula- tions made under those Parts. The Subdivision also makes a related amendment to the Oil Tanker Moratorium Act. Subdivision C of Division 21 amends the Wrecked, Abandoned or Hazardous Vessels Act to, among other things, establish the Vessel Remediation Fund in the accounts of Canada and provide the Minister of Fisheries and Oceans with certain powers in rela- tion to the detention of vessels. Division 22 of Part 4 amends the Canada Transportation Act to, among other things, (a) allow the Governor in Council to require air carriers to publish information respecting their performance on their In- ternet site; (b) permit the sharing of information to ensure the proper functioning of the national transportation system or to in- crease its efficiency, while ensuring the confidentiality of that information; (c) allow the Minister of Transport to require certain persons to provide certain information to the Minister if the Minister is of the opinion that there exists an unusual and significant dis- ruption to the effective continued operation of the national transportation system; (d) establish a new zone in Manitoba, Saskatchewan and Al- berta, in which any interswitching that occurs is subject to the rate determined by the Canadian Transportation Agency, for a period of 18 months; and (e) broaden the scope of the administrative monetary penal- ties scheme. Division 23 of Part 4 amends the Canada Transportation Act to, among other things, (a) broaden the authority of the Canadian Transportation Agency to set fees and charges to recover its costs; (b) replace the current process for resolving air travel com- plaints with a more streamlined process designed to result in more timely decisions; (c) impose a greater burden of proof on air carriers where it is presumed that compensation is payable to a complainant unless the air carrier proves the contrary; 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 SUMMARY Page 9 (d) require air carriers to establish an internal process for dealing with air travel claims; (e) modify the Agency’s regulation-making powers with re- spect to air carriers’ obligations towards passengers; and (f) enhance the Agency’s enforcement powers with respect to the air transportation sector. Division 24 of Part 4 amends the Customs Act to, among other things, (a) allow a person arriving in Canada to present themselves to the Canada Border Services Agency by a means of telecommunication, if that manner of presenting is made available at the customs office at which they are presenting themselves; and (b) subject to the regulations, require that the operator of a commercial aircraft arriving in Canada ensure that baggage on board the aircraft is transported without delay to the near- est international baggage area. The Division also makes a related amendment to the Quarantine Act. Division 25 of Part 4 amends the National Research Council Act to, among other things, provide that the National Research Council of Canada may procure goods and services, including goods and services relating to construction and to research-re- lated digital and information technology. It also establishes a new Procurement Oversight Board. Division 26 of Part 4 amends the Patent Act to, among other things, (a) authorize the Commissioner of Patents to grant an addi- tional term for a patent if certain conditions are met; (b) authorize the Governor in Council to make regulations re- specting the number of days that is to be subtracted in deter- mining the duration of an additional term; and (c) authorize the Commissioner of Patents and the Federal Court to shorten the duration of an additional term if the du- ration as previously determined is longer than is authorized. Division 27 of Part 4 amends the Food and Drugs Act to extend measures regarding therapeutic products to natural health prod- ucts in order to, among other things, (a) strengthen the safety oversight of natural health products throughout their life cycle; and (b) promote greater confidence in the oversight of natural health products by increasing transparency. Division 28 of Part 4 amends the Food and Drugs Act to, among other things, prohibit (a) the sale of a cosmetic unless its safety can be established without relying on data derived from a test conducted on an animal that could cause pain, suffering or injury, whether physical or mental, to the animal, subject to certain excep- tions; (b) the conduct of a test on an animal that could cause pain, suffering or injury, whether physical or mental, to the animal if the purpose of the test is to meet a legislative requirement that relates to cosmetics; and 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 SUMMARY Page 10 (c) deceptive or misleading claims, on the label of or in an advertisement for a cosmetic, with respect to testing on ani- mals. Division 29 of Part 4 enacts the Dental Care Measures Act. Division 30 of Part 4 amends subsection 41(1) of the Canada Post Corporation Act, in response to the decision in R. v. Gorman, to limit the Canada Post Corporation’s authority to open mail other than letters. Division 31 of Part 4 expresses the assent of the Parliament of Canada to the issuing by His Majesty of a Royal Proclamation under the Great Seal of Canada establishing for Canada the ap- plicable Royal Style and Titles. Division 32 of Part 4 amends the Public Sector Pension Invest- ment Board Act to provide that the Public Sector Pension Invest- ment Board may incorporate a subsidiary for the purpose of pro- viding investment management services to the Canada Growth Fund Inc. It also amends the Fall Economic Statement Implemen- tation Act, 2022 to increase the amount that may be paid out of the Consolidated Revenue Fund on the requisition of the Minis- ter of Finance for the acquisition of shares of the Canada Growth Fund Inc. and to provide that the Canada Growth Fund Inc. is not an agent of His Majesty in right of Canada. Division 33 of Part 4 amends the Office of the Superintendent of Financial Institutions Act, the Trust and Loan Companies Act, the Bank Act and the Insurance Companies Act to, among other things, (a) expand the mandate of the Office of the Superintendent of Financial Institutions to include the supervision of federal financial institutions in order to determine whether they have adequate policies and procedures to protect themselves against threats to their integrity or security; and (b) expand the Superintendent of Financial Institutions’ pow- ers to issue directions to, and to take control of, a federal fi- nancial institution in certain circumstances. It also makes a consequential amendment to the Winding-up and Restructuring Act. Division 34 of Part 4 amends the Criminal Code to, among other things, lower the criminal rate of interest calculated in respect of an agreement or arrangement and to express that rate as an an- nual percentage rate. It also authorizes the Governor in Council, by regulation, to fix a limit on the total cost of borrowing under a payday loan agreement. Finally, it provides for transitional provi- sions. Division 35 of Part 4 amends the Employment Insurance Act to extend, until October 26, 2024, the increase in the maximum number of weeks for which benefits may be paid in a benefit pe- riod to certain seasonal workers. Division 36 of Part 4 amends the Canadian Environmental Pro- tection Act, 1999 to, among other things, (a) establish an account in the accounts of Canada to be called the Environmental Economic Instruments Fund, for the purpose of administering amounts received as contributions to certain funding programs under the responsibility of the Minister of the Environment; and (b) replace references to “tradeable units” with references to “compliance units”. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 SUMMARY Page 11 It also makes consequential amendments to the Canada Emis- sion Reduction Incentives Agency Act. Division 37 of Part 4 amends the Canada Deposit Insurance Cor- poration Act to clarify that the Canada Deposit Insurance Corpo- ration may administer any contract related to deposit insurance entered into by the Minister of Finance and to allow the Minister to increase the deposit insurance coverage limit until April 30, 2024. Division 38 of Part 4 amends the Department of Employment and Social Development Act to, among other things, (a) establish the Employment Insurance Board of Appeal to hear appeals of decisions made under the Employment Insur- ance Act instead of the Employment Insurance Section of the General Division of the Social Security Tribunal; and (b) eliminate the requirement for leave to appeal decisions relating to the Employment Insurance Act to the Appeal Divi- sion of the Tribunal. It also makes consequential amendments to other Acts. Division 39 of Part 4 amends the Canada Elections Act to provide for a national, uniform, exclusive and complete regime applica- ble to registered parties and eligible parties respecting their col- lection, use, disclosure, retention and disposal of personal infor- mation. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 SUMMARY Page 12 Page 13 TABLE OF PROVISIONS An Act to implement certain provisions of the budget tabled in Parliament on March 28, 2023 Short Title Budget Implementation Act, 2023, No. 1 1 PART 1 Amendments to the Income Tax Act and Other Legislation 2 PART 2 GST/HST Measures 114 PART 3 Amendments to the Excise Act, the Excise Act, 2001 and the Air Travellers Security Charge Act DIVISION 1 Excise Act and Excise Act, 2001 (Alcohol Products) 124 DIVISION 2 Air Travellers Security Charge Act (Charge Rates) 127 PART 4 Various Measures DIVISION 1 Bank Act 128 DIVISION 2 Private Sector Pension Plans 148 2021-2022-2023 Page 14 DIVISION 3 Measures Related to Money Laundering and to Digital Assets and Other Measures 181 DIVISION 4 Preferential Tariff Programs for Developing Countries 229 DIVISION 5 Removal of Most-Favoured-Nation Tariff Treatment for Belarus and Russia 235 DIVISION 6 Non-application of Sections 27 and 27.1 of the Bank of Canada Act 237 DIVISION 7 Canada Innovation Corporation Act Enactment of Act 238 An Act respecting the Canada Innovation Corporation Alternative Title Alternative title 1 Interpretation Definitions 2 Inconsistency 3 Designation of Minister Order in council 4 Continuation and Status Continuation 5 Head office 6 Not Crown agent 7 Capacity 8 Purpose and Functions Purpose 9 Functions 10 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 TABLE OF PROVISIONS Page 15 Board, Chief Executive Officer and Employees Composition of Board 11 Appointment of directors 12 Appointment of chief executive officer 13 Attendance of chief executive officer at meetings 14 Accident compensation 15 Guidelines 16 Evaluation committee 17 Miscellaneous Provisions Restriction on directives 18 Disclosure of information to federal institutions 19 Payments out of Consolidated Revenue Fund 20 Payments to Receiver General 21 Financial year 22 Quarterly financial reports 23 Annual reports 24 Transitional Provisions Definitions 25 Copy of order provided to Director 26 Transfer of shares 27 Chairperson’s interim powers 28 Rights preserved 29 Industrial Research Assistance Program 30 Transfer of appropriations 31 Transfer of rights, property and obligations 32 Transfer of powers, duties and functions 33 Information about Industrial Research Assistance Pro- gram 34 Regulations 35 DIVISION 8 Federal-Provincial Fiscal Arrangements Act (Canada Health Transfer) 242 DIVISION 9 Federal-Provincial Fiscal Arrangements Act (Equalization and Territorial Financing Renewal and Other Amendments) 243 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 TABLE OF PROVISIONS Page 16 DIVISION 10 Economic Sanctions 252 DIVISION 11 Privileges and Immunities (North Atlantic Treaty Organisation) Act 265 DIVISION 12 Service Fees Act 270 DIVISION 13 Canada Pension Plan 280 DIVISION 14 Department of Employment and Social Development Act 281 DIVISION 15 Canada Labour Code 282 DIVISION 16 Immigration and Refugee Protection Act (Claims for Refugee Protection) 284 DIVISION 17 Immigration and Refugee Protection Act (Sponsorship Applications) 286 DIVISION 18 College of Immigration and Citizenship Consultants Act 287 DIVISION 19 Citizenship Act 300 DIVISION 20 Yukon Act 307 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 TABLE OF PROVISIONS Page 17 DIVISION 21 Oceans Protection Plan 308 DIVISION 22 Canada Transportation Act 436 DIVISION 23 Air Travel Complaints 452 DIVISION 24 Customs Act 475 DIVISION 25 National Research Council Act 481 DIVISION 26 Patent Act 487 DIVISION 27 Food and Drugs Act (Natural Health Products) 500 DIVISION 28 Food and Drugs Act (Cosmetics Testing on Animals) 505 DIVISION 29 Dental Care Measures Act 508 An Act respecting certain matters in relation to the Canadian Dental Care Plan Short Title Dental Care Measures Act 1 Definition Definition of Canadian Dental Care Plan 2 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 TABLE OF PROVISIONS Page 18 His Majesty Binding on His Majesty 3 Reporting Obligation 4 Information return 5 Purpose of information obtained 6 Disclosure of Information Disclosure of information 7 Violations Violations 8 Limitation on imposition of penalty 9 Rescission or reduction of penalty 10 Recovery as debt due to His Majesty 11 Social Insurance Number Social Insurance Number 12 DIVISION 30 Canada Post Corporation Act 509 DIVISION 31 Royal Style and Titles Act, 2023 510 An Act respecting the Royal Style and Titles, 2023 Royal Style and Titles Act, 2023 1 Assent to Royal Style and Titles 2 DIVISION 32 Canada Growth Fund 511 DIVISION 33 Legislation Related to Financial Institutions 517 DIVISION 34 Criminal Code 610 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 TABLE OF PROVISIONS Page 19 DIVISION 35 Employment Insurance Act 617 DIVISION 36 Canadian Environmental Protection Act, 1999 618 DIVISION 37 Canada Deposit Insurance Corporation Act 625 DIVISION 38 Employment Insurance Board of Appeal 631 DIVISION 39 Canada Elections Act 680 SCHEDULE 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 TABLE OF PROVISIONS Page 20 Page 21 70-71 ELIZABETH II – 1 CHARLES III CHAPTER 26 An Act to implement certain provisions of the budget tabled in Parliament on March 28, 2023 [Assented to 22nd June, 2023] His Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: Short Title Short title 1 This Act may be cited as the Budget Implementation Act, 2023, No. 1. PART 1 Amendments to the Income Tax Act and Other Legislation R.S., c. 1 (5th Supp.) Income Tax Act 2 (1) The portion of paragraph 6(1)(e) of the In- come Tax Act before subparagraph (i) is replaced by the following: Standby charge for automobile (e) if at any time in the year an automobile is made available to the taxpayer, or to a particular person who does not deal at arm’s length with the taxpayer, by an- other person (referred to in this paragraph as “the em- ployer”) because of or as a consequence of a previous, the current or an intended office or employment of the taxpayer, the amount, if any, by which (2) Subparagraph 6(1)(e)(ii) of the Act is replaced by the following: 2021-2022-2023 Page 22 (ii) the total of all amounts, each of which is an amount (other than an expense related to the oper- ation of the automobile) paid in the year by the tax- payer, or the particular person who does not deal at arm’s length with the taxpayer, to the employer for the use of the automobile; (3) Subparagraph 6(1)(k)(ii) of the Act is replaced by the following: (ii) amounts related to the operation (otherwise than in connection with or in the course of the tax- payer’s office or employment) of the automobile for the period or periods in the year during which the automobile was made available to the taxpayer, or a person who does not deal at arm’s length with the taxpayer, are paid or payable by the employer with- in the meaning of paragraph (e) that made the au- tomobile available (in this paragraph referred to as the “payor”), and (4) The portion of subsection 6(2) of the Act be- fore the formula is replaced by the following: Reasonable standby charge (2) For the purposes of paragraph (1)(e), a reasonable standby charge for an automobile for the total number of days (in this subsection referred to as the “total available days”) in a taxation year during which the automobile is made available to a taxpayer, or to a person who does not deal at arm’s length with the taxpayer, by a person (re- ferred to in this subsection as the “employer”) shall be deemed to be the amount determined by the formula (5) Subsections (1) to (4) apply to taxation years that begin after 2022. 3 (1) Subclause B(I) of the description of B in subparagraph 8(1)(r)(ii) of the Act is replaced by the following: (I) the amount that is the total of the first dollar amount referred to in paragraph (s) and the amount 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 2-3 Page 23 determined for the taxation year for B in subsection 118(10), and (2) The portion of paragraph 8(1)(s) of the Act be- fore the formula is replaced by the following: Deduction – tradesperson’s tools (s) if the taxpayer is employed as a tradesperson at any time in the taxation year, the lesser of $1,000 and the amount determined by the formula (3) Subsection 8(10) of the Act is replaced by the following: Certificate of employer (10) An amount otherwise deductible for a taxation year under paragraph (1)(c), (f), (h) or (h.1) or subparagraph (1)(i)(ii) or (iii) by a taxpayer shall not be deducted un- less the taxpayer’s employer confirms in prescribed form that the conditions set out in the applicable provision were met in the year in respect of the taxpayer and the form is filed with the taxpayer’s return of income for the year. (4) Subsections (1) and (2) apply to the 2023 and subsequent taxation years. 4 (1) Subsection 12(3) of the Act is replaced by the following: Interest income (3) Subject to subsection (4.1), in computing the income for a taxation year of a corporation, partnership, unit trust or any trust of which a corporation or a partnership is a beneficiary, there shall be included any interest on a debt obligation (other than interest in respect of an in- come bond, an income debenture, a net income stabiliza- tion account or an indexed debt obligation) that accrues to it to the end of the year, or becomes receivable or is re- ceived by it before the end of the year, to the extent that the interest was not included in computing its income for a preceding taxation year. (2) Paragraphs (g) and (h) of the definition in- vestment contract in subsection 12(11) of the Act are repealed. (3) Subsection 12(13) of the Act is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 3-4 Page 24 Definition of flipped property (13) For the purposes of subsections (12) and (14), a flipped property of a taxpayer means a property (other than a property, or a right to acquire property, that would be inventory of the taxpayer if the definition in- ventory in subsection 248(1) were read without reference to subsection (12)) that is (a) prior to its disposition by the taxpayer, either (i) a housing unit located in Canada, or (ii) a right to acquire a housing unit located in Canada; and (b) owned or, in the case of a right to acquire, held, by the taxpayer for less than 365 consecutive days prior to its disposition, other than a disposition that can rea- sonably be considered to occur due to, or in anticipa- tion of, one or more of the following events: (i) the death of the taxpayer or a person related to the taxpayer, (ii) one or more persons related to the taxpayer be- coming a member of the taxpayer’s household or the taxpayer becoming a member of the household of a related person, (iii) the breakdown of the marriage or common-law partnership of the taxpayer if the taxpayer has been living separate and apart from their spouse or com- mon-law partner for at least 90 days prior to the disposition, (iv) a threat to the personal safety of the taxpayer or a related person, (v) the taxpayer or a related person suffering from a serious illness or disability, (vi) an eligible relocation of the taxpayer or the tax- payer’s spouse or common-law partner, if the defi- nition eligible relocation were read without refer- ence to the requirements for the new work location and the new residence to be in Canada, (vii) an involuntary termination of the employment of the taxpayer or the taxpayer’s spouse or com- mon-law partner, (viii) the insolvency of the taxpayer, or (ix) the destruction or expropriation of the proper- ty. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 4 Page 25 (4) Subsection (3) applies to the period through- out which a flipped property of a taxpayer is owned or held by the taxpayer in respect of a dis- position that occurs after 2022. 5 (1) The portion of paragraph 13(4.3)(d) of the Act before subparagraph (i) is replaced by the following: (d) any amount that would, if this Act were read with- out reference to this subsection, be included in the cost of a property of the transferee included in Class 14.1 of Schedule II to the Income Tax Regulations (in- cluding a deemed acquisition under subsection (35)) or included in the proceeds of disposition of a proper- ty of the transferor included in that Class (including a deemed disposition under subsection (37)) in respect of the disposition or termination of the former proper- ty by the transferor is deemed to be (2) Paragraph 13(42)(a) of the French version of the Act is replaced by the following: a) pour l’application de la présente loi et de ses règle- ments (à l’exception du présent article, de l’article 20 et des dispositions réglementaires prises pour l’appli- cation de l’alinéa 20(1)a)), si la valeur de l’élément A de la formule figurant à la définition de montant cu- mulatif des immobilisations admissibles au para- graphe 14(5) avait augmenté immédiatement avant 2017 en raison de la disposition du bien immédiate- ment avant ce moment, le coût en capital du bien est réputé augmenter des 4/3 du montant de cette aug- mentation; (3) Section 13 of the Act is amended by adding the following after subsection (42): Transitional rule (43) An amount is to be included in computing a taxpay- er’s income from a business for a taxation year, and is deemed not to be a taxable capital gain (other than for the purposes of the definition capital dividend account in subsection 89(1)), to the extent (a) the amount is part of the proceeds of disposition of eligible capital property (as defined in section 54, as it read on December 31, 2016) that is in respect of the business; (b) the disposition is under an agreement between the taxpayer and a purchaser that deals at arm’s length with the taxpayer; (c) the disposition occurred before March 22, 2016; 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 4-5 Page 26 (d) the amount becomes receivable under the agree- ment after 2016 and before 2024 because of a condition of the agreement, if (i) at the end of 2016, it was uncertain whether the condition would be met, and (ii) the condition is met after 2016; (e) the amount would, in the absence of this subsec- tion, be a taxable capital gain; (f) the amount would have been included in comput- ing the taxpayer’s income from the business if the amount had become receivable on December 31, 2016; and (g) the taxpayer files an election with the Minister, no later than the filing-due date for the taxpayer’s first taxation year that ends after August 9, 2022 to have this subsection apply in respect of the amount. (4) Subsection (1) applies in respect of disposi- tions that occur after 2016. (5) Subsections (2) and (3) are deemed to have come into force on January 1, 2017. 6 (1) Subsection 15(2.3) of the Act is replaced by the following: When s. 15(2) not to apply – ordinary lending business (2.3) Subsection (2) does not apply to a debt that arose in the ordinary course of the creditor’s business or a loan made in the ordinary course of the lender’s ordinary business of lending money (other than a business of lending money if, at any time during which the loan is outstanding, less than 90% of the aggregate outstanding amount of the loans of the business is owing by borrow- ers that deal at arm’s length with the lender) where, at the time the indebtedness arose or the loan was made, bona fide arrangements were made for repayment of the debt or loan within a reasonable time. Interpretation – partnerships (2.31) For the purposes of this subsection and subsec- tion (2.3), (a) a person or partnership that is a member of a par- ticular partnership that is a member of another 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 5-6 Page 27 partnership is deemed to be a member of the other partnership; and (b) a borrower shall be considered to deal at arm’s length with a lender only if (i) for greater certainty, the borrower and the lender deal with each other at arm’s length, (ii) where either the borrower or the lender is a partnership and the other party is not, each mem- ber of the partnership deals at arm’s length with the other party, and (iii) where both the borrower and the lender are partnerships, the borrower and each member of the borrower deal at arm’s length with the lender and each member of the lender. (2) Subsection 15(5) of the English version of the Act is replaced by the following: Automobile benefit (5) For the purposes of subsection (1), the value of the benefit to be included in computing a shareholder’s in- come for a taxation year with respect to an automobile made available to the shareholder, or a person related to the shareholder, by a corporation shall (except where an amount is determined under subparagraph 6(1)(e)(i) in respect of the automobile in computing the shareholder’s income for the year) be computed on the assumption that subsections 6(1), (1.1), (2) and (7) apply, with such modi- fications as the circumstances require, and as though ref- erences therein to “the employer” were read as “the cor- poration”. (3) Subsection (1) applies to loans made after 2022. Subsection (1), subsection 15(2) of the Act and all provisions of the Act relevant to the inter- pretation and application of subsection 15(2) of the Act also apply in respect of any portion of a particular loan made before 2023 that remains outstanding on January 1, 2023 – as if that portion were a separate loan that was made on January 1, 2023 in the same manner and on the same terms as the particular loan – if, at the time when the particular loan was made, it met the require- ments of subsection 15(2.3) of the Act as in force at the time when the particular loan was made. (4) Subsection (2) applies to taxation years that begin after 2022. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 6 Page 28 7 Sections 15.1 and 15.2 of the Act are repealed. 8 (1) Subparagraph 20(1)(e)(vi) of the Act is re- placed by the following: (vi) where a partnership has ceased to exist, (A) no amount may be deducted by the partner- ship under this paragraph in computing its in- come for its last fiscal period, and (B) there may be deducted for a taxation year ending after the time that is immediately before the end of the partnership’s last fiscal period (re- ferred to in this clause as the “particular time”) by any person or partnership that was a member of the partnership at the particular time, that proportion of the amount that would, but for this subparagraph, have been deductible under this paragraph by the partnership in the fiscal period ending in the year had it continued to exist and had the partnership interest not been redeemed, acquired or cancelled, that the fair market value of the member’s interest in the partnership at the particular time is of the fair market value of all the interests in the partnership at the particu- lar time; (2) The description of N in subclause 20(1)(l)(ii)(D)(II) of the Act is replaced by the fol- lowing: N is the total of all amounts each of which is the specified reserve adjustment for a loan (other than an income bond or an in- come debenture) for the year or a preced- ing taxation year; (3) Paragraph 20(1)(v) of the Act is replaced by the following: Mining taxes (v) such amount as is allowed by regulation in respect of taxes on income from mining operations; (4) The portion of subsection 20(14) of the Act be- fore paragraph (a) is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 7-8 Page 29 Accrued bond interest (14) Where, by virtue of an assignment or other transfer of a debt obligation, other than an income bond or an in- come debenture, the transferee has become entitled to an amount of interest that accrued on the debt obligation for a period commencing before the time of transfer and ending at that time that is not payable until after that time, that amount (5) The portion of subsection 20(14.1) of the Act before paragraph (a) is replaced by the follow- ing: Interest on debt obligation (14.1) Where a person who has issued a debt obligation, other than an income bond or an income debenture, is obligated to pay an amount that is stipulated to be inter- est on that debt obligation in respect of a period before its issue (in this subsection referred to as the “unearned interest amount”) and it is reasonable to consider that the person to whom the debt obligation was issued paid to the issuer consideration for the debt obligation that in- cluded an amount in respect of the unearned interest amount, (6) Subsection (1) is deemed to have come into force on June 26, 2013. (7) Subsection (3) applies to taxation years that end after 2007. Any assessment of a taxpayer’s tax, interest and penalties payable under the Act for any taxation year that ends before August 9, 2022 that would, in the absence of this subsection, be precluded because of subsections 152(4) to (5) of the Act is to be made to the extent necessary to take into account subsection (3) and subsection 103(1) of this Act if the taxpayer so elects in writ- ing and files that election with the Minister of National Revenue on or before the day that is six months after the day on which this section re- ceives royal assent. 9 Paragraphs 44(1)(c) and (d) of the French ver- sion of the Act are replaced by the following: c) si l’ancien bien est visé à l’alinéa a), avant la fin de la deuxième année d’imposition suivant l’année ini- tiale ou, si elle est postérieure, avant la fin de la pé- riode de 24 mois qui suit l’année initiale; d) sinon, avant la fin de la première année d’imposi- tion suivant l’année initiale ou, si elle est postérieure, avant la fin de la période de 12 mois qui suit l’année initiale, 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 8-9 Page 30 10 (1) Subparagraph (c.1)(iii.1) of the definition principal residence in section 54 of the Act is amended by striking out “or” at the end of clause (B), by replacing “and” with “or” at the end of clause (C) and by adding the following after clause (C): (D) a trust (I) a specified beneficiary of which for the year is a qualifying individual for the year in respect of the trust, and (II) under which no person other than a bene- ficiary described in subclause (I) may receive or otherwise obtain the use of, during the beneficiary’s lifetime, any of the income or capital of the trust and the trustees are re- quired to consider the needs of the beneficiary including, without limiting the generality of the foregoing, the comfort, care and mainte- nance of the beneficiary, and (2) The definition principal residence in section 54 of the Act is amended by striking out “and” at the end of paragraph (e), by adding “and” at the end of paragraph (f) and by adding the following af- ter paragraph (f): (g) a qualifying individual, for a taxation year in re- spect of a trust, means an individual who meets the following conditions: (i) the individual is, in the year, any of (A) the settlor of the trust, (B) the child, grandchild, great grandchild, par- ent, grandparent, great grandparent, brother, sister, uncle, aunt, niece or nephew of the settlor or of the spouse or common-law partner or for- mer spouse or common-law partner of the sett- lor, and (C) the spouse or common-law partner or for- mer spouse or common-law partner of any per- son described in clause (A) or (B), (ii) the individual is resident in Canada during the year, and (iii) an amount is deductible, or would be de- ductible if this Act were read without reference to paragraph 118.3(1)(c), under subsection 118.3(1) in computing the individual’s tax payable under this Part for the year; (résidence principale) 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 10 Page 31 (3) Subsections (1) and (2) apply to taxation years that begin after 2016. 11 (1) Paragraph 60(i) of the Act is replaced by the following: Premium or payment under PRPP, RRSP or RRIF (i) any amount that is deductible under section 146 or 146.3 or subsection 147.3(13.1) or 147.5(19) in comput- ing the income of the taxpayer for the year; (2) Paragraph 60(i) of the Act is replaced by the following: Premium or payment – FHSA, PRPP, RRSP or RRIF (i) any amount that is deductible under section 146, 146.3 or 146.6 or subsection 147.3(13.1) or 147.5(19) in computing the income of the taxpayer for the year; (3) Subsection (1) is deemed to have come into force on December 14, 2012. (4) Subsection (2) is deemed to have come into force on April 1, 2023. 12 (1) Paragraph 60.03(2)(a) of the Act is replaced by the following: (a) the pensioner is deemed not to have received the portion of the pensioner’s pension income, qualified pension income or an amount described in subpara- graph (c)(i) of the definition eligible pension income in subsection (1), as the case may be, for the taxation year that is equal to the amount of the pensioner’s split-pension amount for that taxation year; and (2) Paragraph 60.03(2)(b) of the Act is amended by striking out “and” at the end of subparagraph (i), by adding “and” at the end of subparagraph (ii) and by adding the following after subparagraph (ii): (iii) as an amount described in subparagraph (c)(i) of the definition eligible pension income in sub- section (1) to the extent that the split-pension amount was received by the pensioner as an amount described in subparagraph (c)(i) of that definition, if the pension transferee has attained the age of 65 years before the end of the taxation year. (3) Subsections (1) and (2) apply to the 2015 and subsequent taxation years. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 10-12 Page 32 13 (1) The portion of subparagraph (i) of the de- scription of C in paragraph 63(2.3)(c) of the French version of the Act before clause (A) is re- placed by the following: (i) s’il existe une personne assumant les frais d’entretien d’un enfant admissible du contribuable pour l’année, la somme des nombres suivants : (2) The portion of subparagraph (ii) of the de- scription of C in paragraph 63(2.3)(c) of the French version of the Act before clause (A) is re- placed by the following: (ii) dans les autres cas, la somme des nombres suivants : 14 Paragraph 66.1(9)(f) of the Act is replaced by the following: (f) all Canadian development expenses described in subparagraph (a)(ii) of the definition Canadian de- velopment expense in subsection 66.2(5) incurred by the taxpayer in respect of the well in a taxation year preceding the year, other than (i) expenses referred to in paragraph (d) or (e), (ii) restricted expenses, and (iii) expenses for a well referred to in paragraph (a) that are incurred (A) after 2020 (including expenses that are deemed by subsection 66(12.66) to have been in- curred on December 31, 2020), if the expenses are incurred in connection with an obligation that was committed to in writing (including a commitment to a government under the terms of a licence or permit) by the taxpayer before March 22, 2017, and (B) after 2018 (including expenses that are deemed by subsection 66(12.66) to have been in- curred on December 31, 2018), in any other case, 15 The portion of the definition commercial debt obligation after paragraph (b) in subsection 80(1) of the Act is replaced by the following: an amount in respect of the interest was or would have been deductible in computing the debtor’s income, tax- able income or taxable income earned in Canada, as the case may be, if this Act were read without reference to 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 13-15 Page 33 paragraph 18(1)(g), subsections 18(2), (3.1) and (4) and section 21; (créance commerciale) 16 (1) The portion of paragraph 81(1)(d.1) of the Act before subparagraph (i) is replaced by the following: Canadian Forces members and veterans amounts (d.1) the total of all amounts received or enjoyed by the taxpayer or the taxpayer’s spouse or common-law partner or survivor (as defined in subsection 146.2(1)) in the year on account of (2) Paragraph 81(1)(d.1) of the Act is amended by striking out “or” at the end of subparagraph (iii) and by adding the following after subparagraph (iv): (v) a benefit provided under the Veterans Health Care Regulations, (vi) a benefit provided in respect of Rehabilitation Services and Vocational Assistance under Part 2 of the Veterans Well-being Act, or (vii) a benefit provided to a member of the Canadi- an Forces under the Compensation and Benefit In- structions for the Canadian Forces that is (A) a home modifications benefit, (B) a home modifications move benefit, (C) a vehicle modifications benefit, (D) a home assistance benefit, (E) an attendant care benefit, (F) a caregiver benefit, (G) a spousal education upgrade benefit, (H) a funeral and burial expenses benefit, or (I) a next of kin travel benefit; 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 15-16 Page 34 (3) Paragraph 81(1)(d.1) of the Act is amended by striking out “or” at the end of subparagraph (vi), by adding “or” at the end of subparagraph (vii) and by adding the following after subparagraph (vii): (viii) a benefit provided by the Department of Na- tional Defence as an education expense reimburse- ment for ill and injured members; (4) Subparagraph 81(1)(g.3)(i) of the Act is amended by striking out “or” at the end of clause (C), by replacing “and” with “or” at the end of clause (D) and by adding the following after clause (D): (E) the Settlement Agreement entered into by His Majesty in right of Canada on January 18, 2023 in respect of the class action relating to the attendance of day scholars at residential schools, and (5) Subsections (1) and (2) are deemed to have come into force on January 1, 2018. (6) Subsection (3) is deemed to have come into force on January 1, 2021. (7) Subsection (4) applies to the 2023 and subse- quent taxation years. 17 (1) Paragraph 87(2)(j.6) of the Act is replaced by the following: Continuing corporation (j.6) for the purposes of paragraphs 12(1)(t) and (x), subsections 12(2.2) and 13(7.1), (7.4) and (24), para- graphs 13(27)(b) and (28)(c), subsections 13(29) and 18(9.1), paragraphs 20(1)(e), (e.1), (v) and (hh), sec- tions 20.1 and 32, paragraph 37(1)(c), subsection 39(13), subparagraphs 53(2)(c)(vi) and (h)(ii), para- graph 53(2)(s), subsections 53(2.1), 66(11.4), 66.7(11) and 127(10.2), section 139.1, subsection 152(4.3), the determination of D in the definition undepreciated capital cost in subsection 13(21) and the determina- tion of L in the definition cumulative Canadian ex- ploration expense in subsection 66.1(6), the new cor- poration is deemed to be the same corporation as, and a continuation of, each predecessor corporation; (2) Subsection (1) applies to taxation years that end after 2007 except that, for taxation years that end before March 19, 2019, paragraph 87(2)(j.6) of the Act, as enacted by subsection (1), does not ap- ply to subsection 127(10.2) of the Act. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 16-17 Page 35 18 (1) Paragraph 90(8)(b) of the Act is replaced by the following: (b) indebtedness that arose in the ordinary course of the business of the creditor or a loan made in the ordi- nary course of the creditor’s ordinary business of lend- ing money (other than a business of lending money if, at any time during which the loan is outstanding, less than 90% of the aggregate outstanding amount of the loans of the business is owing by borrowers that deal at arm’s length with the creditor) if, at the time the in- debtedness arose or the loan was made, bona fide ar- rangements were made for repayment of the indebted- ness or loan within a reasonable time; (2) Section 90 of the Act is amended by adding the following after subsection (8): Interpretation — partnerships (8.01) For the purposes of paragraph (8)(b), a borrower shall be considered to deal at arm’s length with a creditor only if (a) for greater certainty, the borrower and the creditor deal with each other at arm’s length; (b) where either the borrower or the creditor is a part- nership and the other party is not, each member of the partnership deals at arm’s length with the other party; and (c) where both the borrower and the creditor are part- nerships, the borrower and each member of the bor- rower deal at arm’s length with the creditor and each member of the creditor. (3) Subsections (1) and (2) apply to loans made after 2022. Subsection (1), subsection 90(6) of the Act and all provisions of the Act relevant to the interpretation and application of subsection 90(6) of the Act also apply in respect of any portion of a particular loan made before 2023 that remains outstanding on January 1, 2023 – as if that portion were a separate loan that was made on January 1, 2023 in the same manner and on the same terms as the particular loan – if, at the time when the particular loan was made, it met the require- ments of subsection 90(6) of the Act as in force at the time when the particular loan was made. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 17-18 Page 36 19 (1) The portion of subsection 93.3(1) of the Act before paragraph (a) is replaced by the follow- ing: Definition of specified trust 93.3 (1) In this section, specified trust, at any time, means a trust in respect of which the following apply at that time: (2) Paragraph 93.3(1)(b) of the Act is replaced by the following: (b) the trust is resident in Australia or India (in this section referred to as the “specified jurisdiction”); (3) Paragraph 93.3(2)(c) of the Act is replaced by the following: (c) the trust is at that time a specified trust; (4) The portion of paragraph 93.3(2)(e) of the Act before subparagraph (i) is replaced by the fol- lowing: (e) unless the non-resident corporation first acquires a beneficial interest in the trust at that time or the non-resident corporation first becomes a foreign affili- ate of the taxpayer at that time, immediately before that time (referred to in this paragraph as the “preced- ing time”) subsection (3) applied (5) The portion of subsection 93.3(3) of the Act be- fore paragraph (b) is replaced by the following: Specified trusts (3) If this subsection applies at any time to a taxpayer resident in Canada in respect of a trust, the following rules apply at that time for the specified purposes: (a) the trust is deemed to be a non-resident corpora- tion that is resident in the specified jurisdiction and not to be a trust; (6) Paragraph 93.3(4)(a) of the Act is replaced by the following: (a) the determination, in respect of an interest in a specified trust, of the Canadian tax results (as de- fined in subsection 261(1)) of the taxpayer resident in Canada referred to in subsection (3) for a taxation year in respect of shares of the capital stock of a foreign af- filiate of the taxpayer; 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 19 Page 37 (7) Subsections (1) to (3), (5) and (6) are deemed to have come into force on January 1, 2022. (8) Subsection (4) is deemed to have come into force on July 12, 2013. However, if section 93.3 of the Act is deemed to have come into force on Jan- uary 1, 2006 in respect of a corporation resident in Canada because of an election filed under sub- section 22(3) of the Economic Action Plan 2014 Act, No. 2, then subsection (4) is deemed to have come into force on January 1, 2006 in respect of that corporation. (9) For the purpose of determining if the condi- tion in paragraph 93.3(2)(e) of the Act, as amend- ed by subsection (4), is met at any particular time on or after January 1, 2022, if a non-resident cor- poration has a beneficial interest in a trust resi- dent in India at the beginning of the day on Jan- uary 1, 2022, the non-resident corporation is deemed to have first acquired a beneficial inter- est in the trust at that time. 20 (1) The portion of paragraph 95(2)(b) of the French version of the Act before subparagraph (i) is replaced by the following: b) la fourniture, par une société étrangère affiliée d’un contribuable, de services ou d’un engagement de four- nir des services est réputée constituer une entreprise distincte, autre qu’une entreprise exploitée active- ment, que la société affiliée exploite, et le revenu qui est tiré de cette entreprise, qui s’y rapporte ou qui y est accessoire est réputé être un revenu tiré d’une entre- prise autre qu’une entreprise exploitée activement, dans la mesure où, selon le cas : (2) The definition eligible controlled foreign affiliate in subsection 95(4) of the Act is replaced by the following: eligible controlled foreign affiliate, of a taxpayer, at any time, means a foreign affiliate of the taxpayer at that time, if (a) the affiliate is a controlled foreign affiliate of the taxpayer at that time and at the end of the affiliate’s taxation year that includes that time, and (b) the following condition is met: A ≥ 90% where A is the total of all amounts each of which would be the participating percentage (determined at the end of the taxation year) of a share owned by the 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 19-20 Page 38 taxpayer of the capital stock of a corporation, in respect of the affiliate, if (i) the definition relevant cost base were read without reference to the words “if the affiliate is an eligible controlled foreign affiliate of the tax- payer at that time,” in its subparagraph (b)(i), and (ii) the definition participating percentage in subsection (1) were read without reference to its paragraph (a) and the portion of its para- graph (b) before subparagraph (i); (société étrangère affiliée contrôlée admissible) (3) Subsection (1) applies to taxation years of a foreign affiliate of a taxpayer that begin on or af- ter February 27, 2004. (4) Subsection (2) applies in respect of determi- nations made after August 19, 2011 in respect of property of a foreign affiliate of a taxpayer. How- ever, if the taxpayer elects in writing under this subsection, in respect of all of its foreign affili- ates, and files the election with the Minister of National Revenue, paragraph (b) of the defini- tion eligible controlled foreign affiliate in subsec- tion 95(4) of the Act, as enacted by subsection (2), is, in respect of any such determination made be- fore August 9, 2022, to be read without reference to subparagraph (ii) of the description of A and subparagraph (i) of the description of A is to be read as follows: (i) the amount determined for paragraph (b) in the definition relevant cost base were nil; 21 The portion of subsection 96(3) of the Act be- fore paragraph (a) is replaced by the following: Agreement or election of partnership members (3) If a taxpayer who was a member of a partnership at any time in a fiscal period has, for any purpose relevant to the computation of the taxpayer’s income from the partnership for the fiscal period, made or executed an agreement, designation or election under or in respect of the application of any of subsections 10.1(1), 13(4), (4.2) and (16), 20(9) and 21(1) to (4), section 22, subsection 29(1), section 34, clause 37(8)(a)(ii)(B), subsections 44(1) and (6), 50(1) and 80(5) and (9) to (11), section 80.04, subsections 86.1(2), 88(3.1), (3.3) and (3.5) and 90(3), the 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 20-21 Page 39 definition relevant cost base in subsection 95(4) and subsections 97(2), 139.1(16) and (17) and 249.1(4) and (6) that, if this Act were read without reference to this sub- section, would be a valid agreement, designation or elec- tion, 22 (1) Paragraph 98(3)(c) of the Act is amended by striking out “and” at the end of subparagraph (i) and by adding the following after that sub- paragraph: (i.1) if such property is a membership interest in a partnership (in this subparagraph referred to as the “other partnership”), the person’s percentage of the fair market value of the property immediately after its distribution to the person is deemed to be deter- mined by the formula A − B where A is the amount that is the person’s percentage of the fair market value (determined without ref- erence to this subparagraph) of the property immediately after its distribution, B is the portion of the amount by which the per- son’s percentage of the fair market value (de- termined without reference to this subpara- graph) of the property immediately after its distribution exceeds the person’s percentage of the cost amount to the partnership of the prop- erty immediately before its distribution as may reasonably be regarded as being attributable to the total of all amounts each of which is imme- diately after the particular time (A) in the case of depreciable property held directly by the other partnership or held in- directly by the other partnership through one or more other partnerships, the amount by which the fair market value (determined without reference to liabilities) of such de- preciable property exceeds its cost amount, (B) in the case of a Canadian resource prop- erty or a foreign resource property held di- rectly by the other partnership or held indi- rectly by the other partnership through one or more other partnerships, the fair market value (determined without reference to lia- bilities) of such Canadian or foreign re- source property, or (C) in the case of other property that is not a capital property, a Canadian resource prop- erty or a foreign resource property and that is held directly by the other partnership or held indirectly by the other partnership 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 21-22 Page 40 through one or more other partnerships, the amount by which the fair market value (de- termined without reference to liabilities) of such other property exceeds its cost amount, and (2) Paragraph 98(5)(c) of the Act is amended by striking out “and” at the end of subparagraph (i) and by adding the following after that subpara- graph: (i.1) if such property is a membership interest in a partnership (in this subparagraph referred to as the “other partnership”), the fair market value of the property immediately after the particular time is deemed to be determined by the formula A − B where A is the amount that is the fair market value (de- termined without reference to this subpara- graph) of the property immediately after its distribution to the proprietor, B is the portion of the amount by which the fair market value (determined without reference to this subparagraph) of the property immediately after its distribution to the proprietor exceeds the cost amount to the partnership of the prop- erty immediately before its distribution that may reasonably be regarded as being at- tributable to the total of all amounts each of which is immediately after the particular time (A) in the case of depreciable property held directly by the other partnership or held in- directly by the other partnership through one or more other partnerships, the amount by which the fair market value (determined without reference to liabilities) of such de- preciable property exceeds its cost amount, (B) in the case of a Canadian resource prop- erty or a foreign resource property held di- rectly by the other partnership or held indi- rectly by the other partnership through one or more other partnerships, the fair market value (determined without reference to lia- bilities) of such Canadian or foreign re- source property, or (C) in the case of a property that is not a capital property, a Canadian resource prop- erty or a foreign resource property and that is held directly by the other partnership or held indirectly by the other partnership through one or more other partnerships, the 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 22 Page 41 amount by which the fair market value (de- termined without reference to liabilities) of such property exceeds its cost amount, and (3) Subsections (1) and (2) apply in respect of partnerships that cease to exist on or after Au- gust 9, 2022. 23 (1) The portion of subsection 108(3) of the Act before paragraph (a) is replaced by the follow- ing: Income of a trust in certain provisions (3) For the purposes of the definition income interest in subsection (1), subclause (c.1)(iii.1)(D)(II) of the defini- tion principal residence in section 54 and the definitions lifetime benefit trust in subsection 60.011(1) and ex- empt foreign trust in subsection 94(1), the income of a trust is its income computed without reference to the provisions of this Act and, for the purposes of the defini- tion pre-1972 spousal trust in subsection (1) and para- graphs 70(6)(b) and (6.1)(b), 73(1.01)(c) and 104(4)(a), the income of a trust is its income computed without ref- erence to the provisions of this Act, minus any dividends included in that income (2) Subsection (1) applies to taxation years that begin after 2016. 24 Paragraph (b) of the definition action du capi- tal-actions d’une société agricole ou de pêche fami- liale in subsection 110.6(1) of the French version of the Act is replaced by the following: b) à ce moment, la totalité ou la presque totalité de la juste valeur marchande des biens de la société est at- tribuable à des biens visés au sous-alinéa a)(iv). (share of the capital stock of a family farm or fish- ing corporation) 25 (1) The portion of subsection 115.2(2) of the Act before paragraph (a) is replaced by the fol- lowing: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 22-25 Page 42 Not carrying on business in Canada (2) For the purposes of subsections 115(1) and 150(1), Part XIV and section 805 of the Income Tax Regulations, a non-resident person is not considered to be carrying on business in Canada at any particular time solely because of the provision to the person, or to a partnership of which the person is a member, at the particular time of designated investment services by a Canadian service provider if (2) Subsection (1) is deemed to have come into force on August 9, 2022. 26 (1) Subsection 117(2.1) of the Act is replaced by the following: Adjustment to tax payable – advance payment (2.1) The tax payable under this Part on the individual’s taxable income for a taxation year, as computed under subsection (2), is deemed to be the total of the amount otherwise computed under that subsection and, except for the purposes of sections 118 to 118.9, 120.2, 121 and Subdivision C, the lesser of (a) the total of all amounts deemed to have been paid on account of the individual’s tax payable under this Part for the taxation year under subsections 122.7(2) and (3), and (b) the amount that (i) if the individual is an eligible individual for the purposes of subsection 122.7(2), is the total of all amounts deemed to have been paid (A) on account of the individual’s tax payable under this Part for the taxation year under sub- section 122.72(1) or (3), and (B) on account of tax payable under this Part for the taxation year under subsection 122.72(1) or (3), if subsection 122.72(1) were read without ref- erence to subsection 122.7(3), of a person who is the individual’s cohabiting spouse or com- mon-law partner (as defined in subsection 122.7(1)) at the end of the taxation year, and (ii) in any other case, is the total of all amounts deemed to have been paid on account of the indi- vidual’s tax payable under this Part for the taxation year under subsection 122.72(1) or (3), if subsection 122.72(1) were read without reference to subsection 122.7(2). (2) Subsection (1) applies to taxation years that begin after 2022. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 25-26 Page 43 27 (1) Subparagraph (a)(iii.1) of the definition pension income in subsection 118(7) of the Act is replaced by the following: (iii.1) a payment (other than a payment described in subparagraph (i)) under a money purchase provision (as defined in subsection 147.1(1)) of a registered pension plan or under a specified pen- sion plan, (2) Subsection (1) applies to the 2019 and subse- quent taxation years. 28 (1) The portion of subsection 120.4(3) of the Act before paragraph (a) of the description of B is replaced by the following: Tax payable by a specified individual (3) Notwithstanding any other provision of this Act, if an individual is a specified individual for a taxation year, the individual’s tax payable under this Part for the year shall not be less than the amount, if any, determined by the formula (A + B) − (C + D) where A is the amount added under subsection (2) to the indi- vidual’s tax payable under this Part for the year; B is the amount that is the lesser of the amounts deter- mined under paragraphs 117(2.1)(a) and (b) for the individual for the year; C is the amount deducted under section 118.3 in com- puting the individual’s tax payable under this Part for the year; and D is the total of all amounts each of which is the amount that (2) Subsection (1) applies to taxation years that begin after 2022. 29 (1) Section 122.5 of the Act is amended by adding the following after subsection (3.002): Additional deemed payment – January 2023 (3.003) An eligible individual in relation to a month specified for a taxation year who files a return of income for the taxation year is deemed to have paid during the specified month on account of their tax payable under this Part for the taxation year an amount determined by the formula 0.25 × (A − B) − C 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 27-29 Page 44 where A is the total of (a) $918, (b) $918 for the qualified relation, if any, of the individual in relation to the specified month, (c) if the individual has no qualified relation in re- lation to the specified month and is entitled to deduct an amount for the taxation year under sub- section 118(1) because of paragraph (b) of the de- scription of B in that subsection in respect of a qualified dependant of the individual in relation to the specified month, $918, (d) $483 times the number of qualified depen- dants of the individual in relation to the specified month, other than a qualified dependant in re- spect of whom an amount is included under para- graph (c) in computing the total for the specified month, (e) if the individual has no qualified relation and has one or more qualified dependants, in relation to the specified month, $483, and (f) if the individual has no qualified relation and no qualified dependant, in relation to the specified month, the lesser of $483 and 6% of the amount, if any, by which the individual’s income for the taxa- tion year exceeds $9,919; B is 15% of the amount, if any, by which the individu- al’s adjusted income for the taxation year ex- ceeds $39,826; and C is the amount that the eligible individual is deemed to have paid under subsection (3) during the speci- fied month on account of their tax payable for the taxation year. (2) Section 122.5 of the Act is amended by adding the following after subsection (3.03): January 2023 payment – shared-custody parent (3.04) Notwithstanding subsection (3.003), if an eligible individual is a shared-custody parent (as defined in sec- tion 122.6, but with the term “qualified dependant” in that section having the meaning assigned by subsection (1)) in respect of one or more qualified dependants at the beginning of a month, the amount deemed by subsection (3.003) to have been paid during the specified month is equal to the amount determined by the formula 0.5 × (A + B) where 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 29 Page 45 A is the amount determined by the formula in subsec- tion (3.003), calculated without reference to this sub- section; and B is the amount determined by the formula in subsec- tion (3.003), calculated without reference to this sub- section and subparagraph (b)(ii) of the definition eli- gible individual in section 122.6. (3) Section 122.5 of the Act is amended by adding the following after subsection (4.2): January 2023 – month specified (4.3) Notwithstanding subsection (4) and for the purpos- es of this section, the month specified in subsection (3.003) is January 2023 and the taxation year is the 2021 taxation year. 30 (1) The portion of subsection 122.7(1) of the Act before the first definition is replaced by the following: Definitions 122.7 (1) The following definitions apply in this Subdi- vision. (2) The portion of subsection 122.7(2) of the Act before the formula is replaced by the following: Deemed payment on account of tax (2) Subject to subsection (5), an eligible individual for a taxation year who files a return of income for the taxation year is deemed to have paid, at the end of the taxation year, on account of tax payable under this Part for the taxation year, an amount equal to the amount, if any, de- termined by the formula (3) Subsections 122.7(4) and (6) to (9) of the Act are repealed. (4) Subsections (1) to (3) apply to taxation years that begin after 2022. 31 (1) The Act is amended by adding the follow- ing after section 122.71: Advance payment 122.72 (1) Subject to subsection (5), an individual in relation to a month specified for a taxation year who is an eligible individual for the preceding taxation year who files a return of income for the preceding taxation year on or before the first day of November of the taxation year is deemed to have paid during the specified month on ac- count of their tax payable under this Part for the taxation 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 29-31 Page 46 year an amount equal to 1/6 of the total of the amounts, if any, determined for the individual for the preceding taxation year under subsections 122.7(2) and (3). Conditions of application of subsection (3) (2) Subsection (3) applies in respect of an individual in relation to a particular month specified for a taxation year, and each subsequent month specified for the taxa- tion year, if absent subsection (3) (a) the amount deemed by subsection (1) to have been paid by the individual during the particular month specified for the taxation year would be less than $33; and (b) it is reasonable to conclude that the amount deemed by subsection (1) to have been paid by the in- dividual during each subsequent month specified for the taxation year would be less than $33. Single advance payment (3) If this subsection applies (a) the total of all amounts that would otherwise be deemed by subsection (1) to have been paid on ac- count of the individual’s tax payable under this Part for the taxation year during the particular month spec- ified for the taxation year, and during each subsequent month specified for the taxation year, is deemed to have been paid by the individual on account of their tax payable under this Part for the taxation year dur- ing the particular specified month for the taxation year; and (b) the amount deemed by subsection (1) to have been paid by the eligible individual during those subse- quent months specified for the taxation year is deemed, except for the purpose of this subsection, not to have been paid to the extent that it is included in an amount deemed to have been paid by this subsection. Months specified (4) For the purposes of this section, the months specified for a taxation year are July and October of the taxation year and January of the immediately following taxation year. No advance payment (5) For the purposes of subsection (1), an individual is not an eligible individual for the preceding taxation year in relation to a month specified for a taxation year if the individual 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 31 Page 47 (a) dies in the taxation year before the first day of Ju- ly; (b) is confined to a prison or similar institution for a period in the taxation year of at least 90 days that be- gins on or before the first day of the specified month; or (c) ceases to be resident in Canada on a day in the tax- ation year that is on or before the first day of the speci- fied month. Notification to Minister (6) If, in the absence of subsection (5), an individual or their cohabiting spouse or common-law partner at the end of the preceding taxation year would be deemed in a taxation year to have paid an amount on account of tax payable for the taxation year under this section, the indi- vidual (or, in the case of a deceased individual, their legal representative) shall notify the Minister of the occur- rence of any of the following events before the end of the month following the month in which the event occurs: (a) the individual dies in the taxation year; (b) the individual ceases to be resident in Canada in the taxation year; or (c) the individual is confined to a prison or similar in- stitution for a period of at least 90 days in the taxation year. Advance payment – no eligible spouse (7) Subsection (1) is to be applied to a particular individ- ual in relation to a month specified for a taxation year as if section 122.7 applied to the particular individual for the preceding taxation year on the basis that the particular individual had no eligible spouse for the preceding taxa- tion year, if (a) another individual was, for the purposes of section 122.7, the eligible spouse of the particular individual for the preceding taxation year; and (b) the other individual is not, for the purposes of sub- section (1), an eligible individual for the preceding taxation year in relation to the month specified for the taxation year because of subsection (5). (2) Subsection (1) applies to taxation years that begin after 2022. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 31 Page 48 32 The portion of the definition entreprise de pla- cement déterminée in subsection 125(7) of the French version of the Act before paragraph (a) is replaced by the following: entreprise de placement déterminée Entreprise ex- ploitée par une société, sauf une entreprise exploitée par une caisse de crédit ou une entreprise de location de biens autres que des biens immeubles ou réels, dont le but principal est de tirer un revenu de biens, notamment des intérêts, des dividendes, des loyers et des redevances. Toutefois, sauf dans le cas où la société est une société à capital de risque de travailleurs visée par règlement au cours de l’année, l’entreprise exploitée par une société au cours d’une année d’imposition n’est pas une entreprise de placement déterminée si, selon le cas : 33 Subsection 136(1) of the Act is replaced by the following: Cooperative not private corporation 136 (1) Notwithstanding any other provision of this Act, a cooperative corporation that would, but for this section, be a private corporation is deemed not to be a private corporation except for the purposes of paragraphs 87(2)(vv) and (ww) (including, for greater certainty, in applying those paragraphs as provided under paragraph 88(1)(e.2)), the definitions excessive eligible dividend designation, general rate income pool and low rate income pool in subsection 89(1), subsections 89(4) to (6) and (8) to (10), sections 123.4, 125, 125.1, 127 and 127.1, the definition mark-to-market property in subsection 142.2(1), sections 152 and 157, subsection 185.2(3), the definition small business corporation in subsection 248(1) (as it applies for the purposes of paragraph 39(1)(c)) and subsection 249(3.1). 34 Paragraph (c) of the definition specified debt obligation in subsection 142.2(1) of the Act is re- placed by the following: (c) an income bond, an income debenture or a pre- scribed property, or 35 Subsection 143(1) of the Act is amended by adding “and” at the end of paragraph (k), by striking out “and” at the end of paragraph (l) and by repealing paragraph (m). 36 (1) Paragraph 144.1(2)(f) of the Act is replaced by the following: (f) unless the condition in subparagraph (e)(ii) is sat- isfied, the rights under the trust of each key employee of a participating employer are not more 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 32-36 Page 49 advantageous than the rights of a class of beneficiaries described in subparagraph (e)(i); (2) Subsection (1) is deemed to have come into force on February 27, 2018. 37 (1) The description of Q in the definition net past service pension adjustment in subsection 146(1) of the Act is replaced by the following: Q is the total of all amounts each of which is the amount of a contribution made under subsection 147.1(20), or deemed by prescribed rules to have been made, in respect of the taxpayer for the imme- diately preceding year, and (2) Subsection (1) is deemed to have come into force on January 1, 2021. 38 (1) Paragraph 146.01(2)(b) of the Act is re- placed by the following: (b) except for the purposes of paragraphs (d) and (g) of the definition regular eligible amount and para- graphs (e) and (f) of the definition supplemental eli- gible amount in subsection (1), where an individual agrees to acquire a condominium unit, the individual shall be deemed to have acquired it on the day the in- dividual is entitled to immediate vacant possession of it; (2) Subsection (1) is deemed to have come into force on August 9, 2022. 39 (1) Paragraph (a) of the definition education savings plan in subsection 146.1(1) of the Act is amended by striking out “and” at the end of sub- paragraph (ii) and by adding the following after subparagraph (iii): (iv) an individual (other than a trust), who is a legal parent of a beneficiary, and the individual’s former spouse or common-law partner, who is also the le- gal parent of a beneficiary, and (2) Subclause 146.1(2)(g.1)(ii)(A)(II) of the Act is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 36-39 Page 50 (II) the total of the payment and all other edu- cational assistance payments made under a registered education savings plan of the pro- moter to or for the individual in the 12-month period that ends at that time does not ex- ceed $8,000 or any greater amount that the Minister designated for the purpose of the Canada Education Savings Act approves in writing with respect to the individual, or (3) Clause 146.1(2)(g.1)(ii)(B) of the Act is re- placed by the following: (B) the individual satisfies, at that time, the con- dition set out in clause (i)(B) and the total of the payment and all other educational assistance payments made under a registered education savings plan of the promoter to or for the indi- vidual in the 13-week period that ends at that time does not exceed $4,000 or any greater amount that the Minister designated for the pur- pose of the Canada Education Savings Act ap- proves in writing with respect to the individual; (4) Subsections (1) to (3) are deemed to have come into force on March 28, 2023. 40 (1) Section 146.2 of the Act is amended by adding the following after subsection (4): Right of set-off (4.1) A qualifying arrangement that is a deposit may provide that the issuer has the right to set off any indebt- edness owed by the holder to the issuer, or a person re- lated to the issuer, against the holder’s interest in the ar- rangement if (a) the terms and conditions of the indebtedness and the right of set-off are terms and conditions that per- sons dealing at arm’s length with each other would have entered into; and (b) it is reasonable to conclude that none of the main purposes for the right of set-off is to enable a person (other than the holder) or a partnership to benefit from the exemption from tax under this Part of any amount in respect of the TFSA. (2) The portion of subsection 146.2(5) of the Act before paragraph (a) is replaced by the follow- ing: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 39-40 Page 51 TFSA (5) If the issuer of an arrangement that is, at the time it is entered into, a qualifying arrangement files with the Minister, before March of the calendar year following the calendar year in which the arrangement was entered into (or such later date as is acceptable to the Minister), an election in prescribed form and manner to register the arrangement as a TFSA under the Social Insurance Num- ber of the individual with whom the arrangement was en- tered into, the arrangement becomes a TFSA at the time the arrangement was entered into and ceases to be a TF- SA at the earliest of the following times: (3) Subsection (1) is deemed to have come into force on August 9, 2022. (4) Subsection (2) applies to the 2009 and subse- quent taxation years. 41 (1) The portion of paragraph 146.3(2)(e.1) of the Act before subparagraph (i) is replaced by the following: (e.1) where the fund does not govern a trust or the fund governs a trust created before 1998 that does not hold an annuity contract as a qualified investment for the trust, the fund provides that if an annuitant, at any time, directs that the carrier transfer all or part of the property held in connection with the fund, or an amount equal to its value at that time, to another reg- istered retirement income fund of the annuitant or in accordance with subsection (14.1), the transferor shall retain an amount equal to the lesser of (2) The portion of paragraph 146.3(2)(e.2) of the Act before subparagraph (i) is replaced by the following: (e.2) where paragraph (e.1) does not apply, the fund provides that if an annuitant, at any time, directs that the carrier transfer all or part of the property held in connection with the fund, or an amount equal to its value at that time, to another registered retirement in- come fund of the annuitant or in accordance with sub- section (14.1), the transferor shall retain property in the fund sufficient to ensure that the total of 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 40-41 Page 52 (3) Paragraph 146.3(14.1)(b) of the Act is replaced by the following: (b) is transferred at the direction of the annuitant di- rectly to a registered pension plan of which, at any time before the transfer, the annuitant was a member (as defined in subsection 147.1(1)) or to a specified pension plan and is allocated to the annuitant under a money purchase provision (as defined in subsection 147.1(1)) of the plan; or (4) Subsections (1) to (3) are deemed to have come into force on August 9, 2022. 42 (1) Clause (a)(ii)(B.1) of the definition disabili- ty savings plan in subsection 146.4(1) of the Act is replaced by the following: (B.1) if the arrangement is entered into before 2027, a qualifying family member in relation to the beneficiary who, at the time the arrangement is entered into, is a qualifying person in relation to the beneficiary, (2) The definition qualifying family member in sub- section 146.4(1) of the Act is amended by striking out “or” at the end of paragraph (a), by adding “or” at the end of paragraph (b) and by adding the following after paragraph (b): (c) a brother or sister (determined without reference to subsection 252(2)) of the beneficiary. (membre de la famille admissible) (3) Paragraph 146.4(5)(b) of the Act is amended by striking out “and” at the end of subparagraph (i) and by replacing subparagraph (ii) with the fol- lowing: (ii) the trust’s taxable capital gain or allowable cap- ital loss from the disposition of a property is equal to its capital gain or capital loss, as the case may be, from the disposition, and (iii) the trust’s income shall be computed without reference to subsection 104(6). (4) Subsection (3) is deemed to have come into force on August 9, 2022. 43 (1) Paragraph (a) of the definition compensa- tion in subsection 147.1(1) of the Act is replaced by the following: (a) an amount in respect of the individual’s employ- ment with the employer, or an office in respect of 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 41-43 Page 53 which the individual is remunerated by the employer, that is required (or that would be required but for paragraph 81(1)(a) as it applies with respect to the In- dian Act or the Foreign Missions and International Organizations Act) by section 5 or 6 to be included in computing the individual’s income for the year, except such portion of the amount that (i) meets the following conditions: (A) the portion may reasonably be considered to relate to a period throughout which the individu- al was not resident in Canada, and (B) the portion is (I) not attributable to the performance of the duties of the office or employment in Canada, or (II) exempt from income tax in Canada by reason of a tax treaty, or (ii) is deducted under paragraph 8(1)(o.2) in com- puting the taxpayer’s income for the year, (2) Paragraph (b) of the definition money pur- chase provision in subsection 147.1(1) of the Act is replaced by the following: (b) under which the only benefits in respect of a mem- ber are benefits (i) determined solely with reference to, and provid- ed by, the amount in the member’s account, or (ii) provided under a VPLA fund described in sub- section 8506(13) of the Income Tax Regulations; (disposition à cotisations déterminées) (3) Subsection 147.1(1) of the Act is amended by adding the following in alphabetical order: designated money purchase provision, in a calendar year, means a money purchase provision of a registered pension plan under which accounts are maintained in re- spect of at least 10 members throughout the year or un- der which the total contributions made for the year on behalf of an individual described in paragraph 8515(4)(a) or (b) of the Income Tax Regulations do not exceed 50% of the total contributions made for the year; (disposi- tion à cotisations déterminées désignée) permitted corrective contribution to a registered pen- sion plan means a contribution in a calendar year in re- spect of an individual that would otherwise have been 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 43 Page 54 made in one or more of the 10 immediately preceding years (each such year referred to in this definition as a “retroactive year”) in accordance with the money pur- chase provision of the plan as registered or a money pur- chase provision of a registered pension plan of a prede- cessor employer (for the purposes of this definition, as defined in subsection 8500(1) of the Regulations), but for an error that caused a failure to enroll the individual as a member of the plan or a failure to make a required con- tribution, to the extent that the amount of the contribu- tion does not exceed the lesser of (a) the total of all amounts each of which is an amount, for a retroactive year, determined by the for- mula A + B − C where A is the total of all amounts each of which is an amount by which a contribution required to be made at a particular time in the retroactive year under the provision in respect of the individual exceeds the amount contributed at the particular time in respect of the individual, B is the amount of interest, if any, calculated in re- spect of each amount determined for A at a rate that (i) is required by the Pension Benefits Stan- dards Act, 1985 or a similar law of a province, or (ii) if subparagraph (i) does not apply, does not exceed a reasonable rate, and C is the total amount previously contributed to the provision in respect of the individual under sub- section (20) for the retroactive year, and (b) the amount determined by the formula E − F where E is 150% of the money purchase limit for the calen- dar year, and F is the total amount previously contributed in re- spect of the individual under subsection (20) to the provision, or to any other money purchase provision, if a participating employer under the provision or a predecessor employer has been a participating employer in respect of the individual under that other provision; (cotisation correc- tive permise) 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 43 Page 55 (4) Section 147.1 of the Act is amended by adding the following after subsection (19): Permitted corrective contribution (20) An individual or an employer may make a contribu- tion in a calendar year under a money purchase provision of a registered pension plan in respect of the individual if it is a permitted corrective contribution and the provision was a designated money purchase provision in each of the prior years in respect of which the contribution is made. (5) Subsection (1) is deemed to have come into force on August 9, 2022. (6) Subsection (2) is deemed to have come into force on January 1, 2020. (7) Subsections (3) and (4) are deemed to have come into force on January 1, 2021. 44 (1) Paragraph 147.2(1)(a) of the Act is replaced by the following: (a) in the case of a contribution in respect of a money purchase provision of a plan, the contribution was made in respect of periods before the end of the taxa- tion year (i) in accordance with the plan as registered, or (ii) under subsection 147.1(20); (2) Paragraph 147.2(4)(a) of the Act is replaced by the following: Service after 1989 (a) the total of all amounts each of which is a contri- bution (other than a prescribed contribution) made by the individual in the year (i) to a registered pension plan that is in respect of a period after 1989 or that is a prescribed eligible contribution, to the extent that the contribution was made in accordance with the plan as registered, or (ii) under subsection 147.1(20); (3) Subsections (1) and (2) are deemed to have come into force on January 1, 2021. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 43-44 Page 56 45 (1) Paragraph 147.5(2)(f) of the Act is amended by striking out “or” at the end of subparagraph (i), by adding “or” at the end of subparagraph (ii) and by adding the following after subparagraph (ii): (iii) a surrender of benefits payable to a qualifying survivor of a member after the member’s death, to the extent permitted under the Pooled Registered Pension Plans Act or a similar law of a province; (2) Subsection 147.5(12) of the Act is replaced by the following: Member’s account (12) For the purposes of paragraph 18(1)(u), subpara- graph (a)(i) of the definition excluded right or interest in subsection 128.1(10), paragraph 146(8.2)(b), subsec- tion 146(8.21), paragraphs 146(16)(a) and (b), subpara- graph 146(21)(a)(i), paragraph (b) of the definition ex- cluded premium in subsection 146.01(1), paragraph (c) of the definition excluded premium in subsection 146.02(1), subsections 146.3(14) and 147(19) to (21), sec- tions 147.3 and 160.2 and paragraphs 212(1)(j.1) and (m), and of regulations made under subsection 147.1(18), a member’s account under a PRPP is deemed to be a regis- tered retirement savings plan under which the member is the annuitant. (3) Subparagraph (b)(ii) of the description of B in subsection 147.5(18) of the Act is replaced by the following: (ii) an amount distributed from the account to, or on behalf of, a qualifying survivor in relation to the mem- ber as a consequence of the death of the member. (4) Subsections (1) to (3) are deemed to have come into force on August 9, 2022. 46 (1) Subsection 149(1) of the Act is amended by adding the following after paragraph (o.4): Pension Benefits Guarantee Fund (o.5) the Pension Benefits Guarantee Fund under the Pension Benefits Act, R.S.O. 1990, c. P.8, and any cor- poration established solely for investing the assets of the Pension Benefits Guarantee Fund; (2) Paragraph 149(1.2)(a) of the Act is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 45-46 Page 57 (a) under an agreement that meets the following con- ditions: (i) the agreement is in writing between (A) the corporation, commission or association, and (B) a person who is His Majesty in right of Canada or of a province, a municipality, a mu- nicipal or public body or a corporation to which any of paragraphs (1)(d) to (d.6) applies and that is controlled by His Majesty in right of Canada or of a province, by a municipality in Canada or by a municipal or public body in Canada, (ii) the agreement is applicable within the geo- graphical boundaries of (A) if the person is His Majesty in right of Canada or a corporation controlled by His Majesty in right of Canada, Canada, (B) if the person is His Majesty in right of a province or a corporation controlled by His Majesty in right of a province, the province, (C) if the person is a municipality in Canada or a corporation controlled by a municipality in Canada, the municipality, and (D) if the person is a municipal or public body or a corporation controlled by such a body, the area described in subsection (11) in respect of the person, (iii) the income earned from the activities carried on under the agreement is paid from the party de- scribed in clause (i)(B) to the party described in clause (i)(A), and (iv) the activities under the agreement are activities normally carried out by a local government; or (3) Subsection (1) applies to the 2022 and subse- quent taxation years. (4) Subsection (2) is deemed to have come into force on August 9, 2022. 47 (1) Paragraph 149.1(15)(a) of the Act is re- placed by the following: (a) the information contained in a public information return referred to in subsection (14) or (14.1), and the filing status of information returns required by that subsection, shall be communicated or otherwise made 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 46-47 Page 58 available to the public by the Minister in such manner as the Minister considers appropriate; (2) Subparagraph 149.1(15)(b)(iii) of the Act is re- placed by the following: (iii) the effective date of any suspension, revoca- tion, annulment or termination of registration; and (3) Subsection (1) applies in respect of informa- tion returns required to be filed for taxation years that end after August 9, 2022. (4) Subsection (2) is deemed to have come into force on August 9, 2022. 48 (1) Subsections 150.1(2.2) and (2.3) of the Act are replaced by the following: Definition of tax preparer (2.2) In this section and subsection 162(7.3), tax prepar- er, for a calendar year, means a person or partnership who, in the year, accepts consideration to prepare more than five returns of income of corporations, more than five returns of income of individuals (other than trusts) or more than five returns of income of estates or trusts, but does not include an employee who prepares returns of income in the course of performing their duties of em- ployment. Electronic filing — tax preparer (2.3) A tax preparer shall file any return of income pre- pared by the tax preparer for consideration by way of electronic filing, except that five of the returns of corpo- rations, five of the returns of individuals (other than trusts) and five of the returns of estates or trusts may be filed other than by way of electronic filing. (2) Subsection 150.1(4) of the Act is replaced by the following: Declaration (4) If a return of income of a taxpayer for a taxation year is filed by way of electronic filing by a particular person (in this subsection referred to as the “filer”) other than the person who is required to file the return, the person who is required to file the return shall make an informa- tion return in prescribed form containing prescribed 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 47-48 Page 59 information, retain a copy of it and provide the filer with the information return, and that return and the copy shall be deemed to be a record referred to in section 230 in respect of the filer and the other person. (3) Section 150.1 of the Act is amended by adding the following after subsection (4): Electronic notice of assessment (4.1) Notwithstanding subsection 244(14.1), a notice of assessment in respect of a return of income for a taxation year of an individual is presumed to have been sent to the individual and received by the individual on the day that it is made available, using electronic means, to the indi- vidual, if (a) the return of income is filed by way of electronic filing; and (b) the individual has authorized that notices or other communications may be made available in that man- ner and has not before that date revoked that autho- rization in a manner specified by the Minister. (4) Subsections (1) and (3) come into force on January 1, 2024. 49 (1) Paragraph 152(1)(b) of the Act is replaced by the following: (b) the amount of tax, if any, deemed by any of sub- sections 120(2) or (2.2), 122.5(3) to (3.003), 122.51(2), 122.7(2) or (3), 122.72(1), 122.8(4), 122.9(2), 122.91(1), 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on account of the taxpay- er’s tax payable under this Part for the year. (2) Paragraph 152(1.2)(d) of the Act is replaced by the following: (d) the Minister determines the amount deemed by any of subsections 122.5(3) to (3.003), 122.72(1) or 122.8(4) to have been paid by an individual for a taxa- tion year to be nil, subsection (2) does not apply to the determination unless the individual requests a notice of determination from the Minister. (3) Subparagraph 152(4)(b)(ii) of the French ver- sion of the Act is replaced by the following: (ii) est établie par suite de l’établissement, en appli- cation du présent alinéa ou du paragraphe (6), d’une cotisation ou d’une nouvelle cotisation 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 48-49 Page 60 concernant l’impôt payable par un autre contri- buable, (4) Paragraph 152(4)(b.1) of the Act is replaced by the following: (b.1) an information return described in subsection 237.1(7) that is required to be filed in respect of a de- duction or claim made by the taxpayer in relation to a tax shelter is not filed as and when required, and the assessment, reassessment or additional assessment is made before the day that is three years after the day on which the information return is filed; (5) Subsection 152(4) of the Act is amended by adding the following after paragraph (b.4): (b.5) an information return that is required to be filed under subsection 237.3(2) in respect of a reportable transaction (as defined in subsection 237.3(1)) en- tered into by the taxpayer, or by a person for the bene- fit of the taxpayer, is not filed as and when required, and the assessment, reassessment or additional as- sessment is made before the day that is (i) in the case of a taxpayer described in paragraph (3.1)(a), four years after the day on which the infor- mation return is filed, or (ii) in any other case, three years after the day on which the information return is filed; (b.6) an information return that is required to be filed under subsection 237.4(4) in respect of a notifiable transaction (as defined in subsection 237.4(1)) en- tered into by the taxpayer, or by a person for the bene- fit of the taxpayer, is not filed as and when required, and the assessment, reassessment or additional as- sessment is made before the day that is (i) in the case of a taxpayer described in paragraph (3.1)(a), four years after the day on which the infor- mation return is filed, or (ii) in any other case, three years after the day on which the information return is filed; (b.7) an information return that is required to be filed under subsection 237.5(2) in respect of a reportable uncertain tax treatment (as defined in subsection 237.5(1)) of the taxpayer is not filed as and when re- quired, and the assessment, reassessment or addition- al assessment is made before the day that is 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 49 Page 61 (i) in the case of a taxpayer described in paragraph (3.1)(a), four years after the day on which the infor- mation return is filed, or (ii) in any other case, three years after the day on which the information return is filed; (6) The portion of subsection 152(4.01) of the Act before paragraph (a) is replaced by the follow- ing: Extended period of assessment (4.01) Notwithstanding subsections (4) and (5), an as- sessment, reassessment or additional assessment to which any of paragraphs (4)(a) to (b.1) or (b.3) to (c) ap- plies in respect of a taxpayer for a taxation year may be made after the taxpayer’s normal reassessment period in respect of the year to the extent that, but only to the ex- tent that, it can reasonably be regarded as relating to, (7) The portion of paragraph 152(4.01)(b) of the Act before subparagraph (i) is replaced by the following: (b) if any of paragraphs (4)(b), (b.1) or (b.5) to (c) ap- plies to the assessment, reassessment or additional as- sessment, (8) Paragraph 152(4.01)(b) of the Act is amended by striking out “or” at the end of subparagraph (vi) and by replacing subparagraph (vii) with the following: (vii) the deduction or claim referred to in para- graph (4)(b.1), (viii) the reportable transaction referred to in para- graph (4)(b.5), (ix) the notifiable transaction referred to in para- graph (4)(b.6), or (x) any transaction, or series of transactions, to which the reportable uncertain tax treatment re- ferred to in paragraph (4)(b.7) relates; (9) Paragraph 152(4.2)(b) of the Act is replaced by the following: (b) redetermine the amount, if any, deemed by any of subsections 120(2) or (2.2), 122.5(3) to (3.003), 122.51(2), 122.7(2) or (3), 122.8(4), 122.9(2), 122.91(1), 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 49 Page 62 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on ac- count of the taxpayer’s tax payable under this Part for the year or deemed by subsection 122.61(1) to be an overpayment on account of the taxpayer’s liability un- der this Part for the year. (10) Subsections (4) to (8) apply to taxation years that begin after 2022. 50 (1) The portion of subsection 153(1) of the Act after paragraph (v) is replaced by the following: must deduct or withhold from the payment the amount determined in accordance with prescribed rules and must, at the prescribed time, remit that amount to the Receiver General on account of the payee’s tax for the year under this Part or Part XI.3, as the case may be, and, where at that prescribed time the person is a prescribed person, the remittance must be made to the account of the Receiver General at or through a designated financial institution. (2) Subsection 153(1.4) of the Act is replaced by the following: Exception — remittance to designated financial institution (1.4) For the purpose of subsection (1), a prescribed per- son referred to in that subsection is deemed to have re- mitted an amount to the account of the Receiver General at or through a designated financial institution if the pre- scribed person has remitted the amount to the Receiver General at least one day before the day upon which the amount is due. (3) Subsections (1) and (2) apply in respect of payments and remittances made after 2021. 51 (1) Paragraph 160.1(1)(b) of the Act is replaced by the following: (b) the taxpayer shall pay to the Receiver General in- terest at the prescribed rate on the excess (other than any portion of the excess that can reasonably be con- sidered to arise as a consequence of the operation of section 122.5, 122.61, 122.72 or 122.8) from the day it became payable to the date of payment. (2) Paragraph 160.1(1.1)(b) of the Act is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 49-51 Page 63 (b) the total of the amounts deemed by subsection 122.5(3), (3.002) or (3.003) to have been paid by the in- dividual during those specified months. (3) Subsection 160.1(3) of the Act is replaced by the following: Assessment (3) The Minister may at any time assess a taxpayer in re- spect of any amount payable by the taxpayer because of any of subsections (1) to (1.2) or for which the taxpayer is liable because of subsection (2.1) or (2.2), and the provi- sions of this Division (including, for greater certainty, the provisions in respect of interest payable) apply, with any modifications that the circumstances require, in respect of an assessment made under this section, as though it were made under section 152 in respect of taxes payable under this Part, except that no interest is payable on an amount assessed in respect of an excess referred to in subsection (1) that can reasonably be considered to arise as a consequence of the operation of section 122.5, 122.61, 122.72 or 122.8. 52 (1) The Act is amended by adding the follow- ing after section 160.4: Electronic Payments Definitions 160.5 (1) The following definitions apply in this section. designated financial institution has the same meaning as in subsection 153(6). (institution financière dési- gnée) electronic payment means any payment or remittance to the Receiver General that is made through electronic services offered by a designated financial institution or by any electronic means specified by the Minister. (paie- ment électronique) Requirement – electronic payments (2) The remittance or payment of an amount to the Re- ceiver General must be made as an electronic payment if the amount of the remittance or payment ex- ceeds $10,000, unless the payor or remitter cannot rea- sonably remit or pay the amount in that manner. (2) Subsection (1) applies in respect of payments and remittances made after 2023. 53 Paragraph 161(11)(b.1) of the Act is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 51-53 Page 64 (b.1) in the case of a penalty under subsection 237.1(7.4), 237.3(8), 237.4(12) or 237.5(5), from the day on which the taxpayer became liable to the penalty to the day of payment; and 54 (1) Paragraph 162(7.02)(a) of the Act is re- placed by the following: (a) where the number of those information returns is greater than 5 and less than 51, $125; (a.1) where the number of those information returns is greater than 50 and less than 251, $250; (2) Section 162 of the Act is amended by adding the following after subsection (7.3): Penalty — electronic payments (7.4) Every person who fails to comply with subsection 160.5(2) is liable to a penalty equal to $100 for each such failure. (3) Subsection 162(8.1) of the Act is replaced by the following: Rules — partnership liable to a penalty (8.1) If a partnership is liable to a penalty under any of subsections (5) to (7.1), (7.3), (7.4), (8) and (10), then sec- tions 152, 158 to 160.1, 161 and 164 to 167 and Division J apply, with any modifications that the circumstances re- quire, to the penalty as if the partnership were a corpora- tion. (4) Subsection (1) applies in respect of informa- tion returns filed after 2023. (5) Subsections (2) and (3) apply in respect of payments and remittances made after 2023. 55 Subsection 163(2.9) of the Act is replaced by the following: Partnership liable to penalty (2.9) If a partnership is liable to a penalty under para- graph (2)(i), subsection (2.4) or (2.901) or section 163.2, 237.1, 237.3 or 237.4, sections 152, 158 to 160.1, 161 and 164 to 167 and Division J apply, with any changes that the circumstances require, in respect of the penalty as if the partnership were a corporation. 56 (1) Section 164 of the Act is amended by adding the following after subsection (2.21): 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 53-56 Page 65 Application respecting refunds under section 122.72 (2.22) Where an amount deemed under section 122.72 to be paid by an individual during a month specified for a taxation year is applied under subsection (2) to a liability of the individual and the individual’s return of income for the year is filed on or before the individual’s balance-due day for the year, the amount is deemed to have been so applied on the day on which the amount would have been refunded if the individual were not liable to make a pay- ment to His Majesty in right of Canada. (2) The portion of subsection 164(3) of the Act be- fore paragraph (a) is replaced by the following: Interest on refunds and repayments (3) If, under this section, an amount in respect of a taxa- tion year (other than an amount, or a portion of the amount, that can reasonably be considered to arise from the operation of section 122.5, 122.61, 122.72, 122.8 or 125.7) is refunded or repaid to a taxpayer or applied to another liability of the taxpayer, the Minister shall pay or apply interest on it at the prescribed rate for the period that begins on the day that is the latest of the days re- ferred to in the following paragraphs and that ends on the day on which the amount is refunded, repaid or ap- plied: (3) Subsections (1) and (2) apply to taxation years that begin after 2022. 57 (1) The portion of subsection 189(6.1) of the Act before paragraph (a) is replaced by the fol- lowing: Revoked charity to file returns (6.1) If the registration of a taxpayer as a registered charity has been revoked (and subsection 188(2.1) does not apply to the taxpayer), the taxpayer shall, on or be- fore the day that is one year from the end of the taxation year referred to in paragraph 188(1)(a), and without no- tice or demand, (2) The portion of subsection 189(8) of the Act be- fore paragraph (a) is replaced by the following: Provisions applicable to Part (8) Subsections 150(2) and (3), sections 152 and 158, sub- section 161(11), sections 162 to 167 and Division J of Part I apply in respect of an amount assessed under this Part and of a notice of suspension under subsection 188.2(1), (2) or (2.1) as if the notice were a notice of assessment 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 56-57 Page 66 made under section 152, with any modifications that the circumstances require including, for greater certainty, that a notice of suspension that is reconsidered or re- assessed may be confirmed or vacated, but not varied, ex- cept that (3) Subsection (1) applies in respect of taxation years that end after August 9, 2022. (4) Subsection (2) is deemed to have come into force on August 9, 2022. 58 (1) Paragraph (a) of the description of J in subsection 204.2(1.2) of the Act is replaced by the following: (a) the total of all amounts each of which is (i) an amount received by the individual in the year and before that time out of or under a pooled registered pension plan, a registered re- tirement savings plan, a registered retirement income fund or a specified pension plan and in- cluded in computing the individual’s income for the year, or (ii) an amount included in computing the indi- vidual’s income for the year under any of subsec- tions 146.01(4) to (6) and 146.02(4) to (6) (2) Subsection (1) applies to the 2018 and subse- quent taxation years. 59 (1) Section 204.5 of the Act is replaced by the following: Publication 204.5 Each year the Minister shall make available to the public, in such a manner as the Minister deems appropri- ate, the names of all registered investments as of Decem- ber 31 of the preceding year. (2) Subsection (1) is deemed to have come into force on August 9, 2022. 60 (1) Subparagraph (a)(ii) of the definition ad- vantage in subsection 207.01(1) of the Act is re- placed by the following: (ii) a loan or an indebtedness (including, in the case of a TFSA, a loan or an indebtedness in respect of which the conditions in subsection 146.2(4) or (4.1) are met) the terms and conditions of which are terms and conditions that persons dealing at arm’s length with each other would have entered into, 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 57-60 Page 67 (2) The portion of subparagraph (b)(i) of the def- inition advantage in subsection 207.01(1) of the Act before clause (A) is replaced by the following: (i) a transaction or event or a series of transactions or events (other than a payment, not exceeding a reasonable amount, by the controlling individual of the registered plan where the payment would be de- scribed by paragraph 20(1)(bb) if the reference to “the taxpayer” in subparagraph (i) of that para- graph were read as a reference to “a controlling in- dividual of a registered plan” and if the references to “the taxpayer” in subparagraph (ii) of that para- graph were read as references to “the registered plan”) that (3) Section 207.01 of the Act is amended by adding the following after subsection (1): Interpretation (2) For the purposes of this section, income includes div- idends described in section 83. (4) Subsection (1) is deemed to have come into force on August 9, 2022. (5) Subsection (2) applies to the 2018 and subse- quent taxation years. (6) Subsection (3) applies in respect of dividends received on or after August 9, 2022. 61 (1) Paragraph (c) of the description of B in subsection 207.8(2) of the Act is replaced by the following: (c) in any other case, the percentage (rounded to the nearest half percentage, or where it is equidistant from two such consecutive half percentages, to the higher of the two) determined by the formula E × F where E is the highest individual percentage for the year, and F is the percentage referred to in subsection 120(1); and (2) Subsection (1) applies to the 2022 and subse- quent taxation years. 62 (1) Subsection 212(13.2) of the Act is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 60-62 Page 68 Application of Part XIII tax — payer subject to Part I (13.2) For the purposes of this Part, if a particular non- resident person pays or credits an amount (other than an amount to which subsection (13) applies) to another non- resident person or to a partnership (other than a Canadi- an partnership), the particular non-resident person is deemed to be a person resident in Canada in respect of the portion of the amount that is deductible in computing (a) the particular non-resident person’s taxable in- come earned in Canada from a source that is neither a treaty-protected business nor a treaty-protected prop- erty; or (b) the amount on which the particular non-resident person is liable to pay tax under Part I because of sec- tion 216. (2) Subsection 212(13.3) of the Act is replaced by the following: Application of Part XIII to authorized foreign bank (13.3) An authorized foreign bank is deemed to be a per- son resident in Canada for the purposes of (a) this Part, in respect of any amount paid or credited to or by the bank in respect of its Canadian banking business; and (b) the application in paragraph (13.1)(b) and subsec- tion (13.2) of the definition Canadian partnership (as defined in subsection 248(1)), in respect of a member- ship interest in a partnership held by the bank in the course of its Canadian banking business. (3) Subsections (1) and (2) apply to amounts paid or credited after 2022. 63 (1) Clause (B) of the description of A in sub- paragraph 212.3(9)(b)(ii) of the Act is replaced by the following: (B) as a reduction of paid-up capital or dividend in re- spect of a class of shares of the capital stock of the sub- ject corporation or the portion, of a reduction of paid- up capital or dividend in respect of a class of shares of the capital stock of a foreign affiliate of the particular corporation that were substituted for shares of the capital stock of the subject corporation, that can rea- sonably be considered to relate to shares of the capital stock of the subject corporation, or 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 62-63 Page 69 (2) The description of A in subparagraph 212.3(9)(b)(ii) of the Act, as amended by subsec- tion (1), is replaced by the following: A is the amount that is equal to the fair market value of property that (A) the particular corporation demonstrates has been received at the subsequent time by it or by a corporation resident in Canada that was not deal- ing at arm’s length with the particular corporation at that time (either of which is in this subpara- graph referred to as the “recipient corporation”) (I) as proceeds from the disposition of the ac- quired shares, or other shares to the extent that the proceeds from the disposition of those oth- er shares can reasonably be considered to re- late to the acquired shares or to shares of the capital stock of the subject corporation in re- spect of which an investment described in paragraph (10)(b) was made, (II) as a reduction of paid-up capital or divi- dend in respect of a class of shares of the capi- tal stock of the subject corporation or the por- tion, of a reduction of paid-up capital or divi- dend in respect of a class of shares of the capi- tal stock of a foreign affiliate of the particular corporation that were substituted for shares of the capital stock of the subject corporation, that can reasonably be considered to relate to shares of the capital stock of the subject corpo- ration, or (III) if the investment is described in paragraph (10)(c) or (d) or subparagraph (10)(e)(i), 1 as a repayment of or as proceeds from the disposition of the debt obligation or amount owing, or 2 as interest on the debt obligation or amount owing, and (B) is not received by the recipient corporation (I) as a result of an investment, made by the re- cipient corporation, to which subsection (16) or (18) applies, or (II) as proceeds from a disposition of property to a corporation resident in Canada for which the acquisition is an investment to which sub- section (16) or (18) applies, or to a partnership of which such a corporation is a member, 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 63 Page 70 (3) Subsection (1) applies in respect of transac- tions and events that occur after March 28, 2012. (4) Subsection (2) applies in respect of transac- tions and events that occur on or after August 9, 2022. 64 Paragraph 214(3)(g) of the Act is repealed. 65 Paragraph 227(10)(b) of the Act is replaced by the following: (b) subsection 237.1(7.4) or (7.5), 237.3(8), 237.4(12) or 237.5(5) by a person or partnership, 66 (1) Paragraph (b) of the definition specified Canadian entity in subsection 233.3(1) of the Act is replaced by the following: (b) a partnership where the total of all amounts, each of which is a share of the partnership’s income or loss for the period of a member that is a non-resident per- son or a taxpayer referred to in any of subparagraphs (a)(i) to (viii), is less than 90% of the income or loss of the partnership for the period, and, where the income and loss of the partnership are nil for the period, the income of the partnership for the period is deemed to be $1,000,000 for the purpose of this paragraph. (enti- té canadienne déterminée) (2) Paragraph (n) of the definition specified for- eign property in subsection 233.3(1) of the Act is replaced by the following: (n) an interest in a trust that is described in paragraph (a) or (b) of the definition exempt trust in subsection 233.2(1), or that would be described in paragraph (b) of that definition if that paragraph were read as fol- lows: (b) a trust that (i) is resident in Australia or New Zealand for in- come tax purposes under the laws of Australia or New Zealand, as the case may be, (ii) qualifies for a reduced rate of income tax under the income tax laws of its country of residence re- ferred to in subparagraph (i), (iii) is established principally for the purpose of ad- ministering or providing benefits under a superan- nuation, pension or retirement fund or plan, and 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 63-66 Page 71 (iv) is maintained primarily for the benefit of indi- viduals that are resident in Australia or New Zealand, as the case may be; or (3) Subsections (1) and (2) apply to taxation years and fiscal periods that end after August 9, 2022. 67 Paragraph 237(1)(b) of the English version of the Act is replaced by the following: (b) within 15 days after the individual is requested by the person to provide the individual’s Social Insurance Number, 68 (1) The definition solicitor-client privilege in subsection 237.3(1) of the Act is repealed. (2) The definition avoidance transaction in subsec- tion 237.3(1) of the Act is replaced by the follow- ing: avoidance transaction means a transaction if it may reasonably be considered that one of the main purposes of the transaction, or of a series of transactions of which the transaction is a part, is to obtain a tax benefit. (opé- ration d’évitement) (3) Paragraph (a) of the definition contractual pro- tection in subsection 237.3(1) of the Act is replaced by the following: (a) any form of insurance or other protection, includ- ing, without limiting the generality of the foregoing, an indemnity, compensation or a guarantee, that (i) either immediately or in the future and either absolutely or contingently, (A) protects a person against a failure of the transaction or series to achieve any tax benefit from the transaction or series, or (B) pays for or reimburses any expense, fee, tax, interest, penalty or similar amount that may be incurred by a person in the course of a dispute in respect of a tax benefit from the transaction or series, and (ii) is not (A) standard professional liability insurance, or (B) integral to an agreement between persons acting at arm’s length for the sale or transfer of all or part of a business (either directly or 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 66-68 Page 72 through the sale or transfer of one or more cor- porations, partnerships or trusts) where it is rea- sonable to consider that the insurance or protec- tion (I) is intended to ensure that the purchase price paid under the agreement takes into ac- count any liabilities of the business immedi- ately prior to the sale or transfer, and (II) is obtained primarily for purposes other than to achieve any tax benefit from the trans- action or series; and (4) The portion of the definition reportable trans- action in subsection 237.3(1) of the Act before sub- paragraph (a)(i) is replaced by the following: reportable transaction, at any time, means an avoid- ance transaction that is entered into by or for the benefit of a person, and each transaction that is part of a series of transactions that includes the avoidance transaction, if at the time any of the following paragraphs applies in re- spect of the avoidance transaction or series: (a) an advisor or promoter, or any person who does not deal at arm’s length with the advisor or promoter, has or had an entitlement, either immediately or in the future and either absolutely or contingently, to a fee (other than a fee in relation to a prescribed form required to be filed under subsection 37(11)) that to any extent (5) The portion of paragraph (b) of the definition reportable transaction in subsection 237.3(1) of the Act before subparagraph (i) is replaced by the following: (b) an advisor or promoter in respect of the avoidance transaction or series, or any person who does not deal at arm’s length with the advisor or promoter, obtains or obtained confidential protection, and the prohibi- tion on disclosure provided under the confidential protection provides confidentiality in respect of a tax treatment in relation to the avoidance transaction or series, 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 68 Page 73 (6) Subsection 237.3(1) of the Act is amended by adding the following in alphabetical order: tax treatment, of a person, means a treatment in respect of a transaction, or series of transactions, that the person uses, or plans to use, in a return of income or an informa- tion return (or would use in a return of income or an in- formation return if a return of income or an information return were filed) and includes the person’s decision not to include a particular amount in a return of income or an information return. (traitement fiscal) (7) Paragraph 237.3(2)(a) of the Act is replaced by the following: (a) every person for whom a tax benefit results, or for whom a tax benefit is expected to result based on the person’s tax treatment of the reportable transaction, from (i) the reportable transaction, (ii) any other reportable transaction that is part of a series of transactions that includes the reportable transaction, or (iii) a series of transactions that includes the re- portable transaction; (8) Subsections 237.3(4) and (5) of the Act are re- placed by the following: Clerical or secretarial services (4) For greater certainty, subsection (2) does not apply to a person solely because the person provided clerical ser- vices or secretarial services with respect to a reportable transaction. Time for filing return (5) An information return required under subsection (2) to be filed with the Minister for a reportable transaction must be filed by (a) a person described in paragraph (2)(a) or (b) on or before the particular day that is 90 days after the earli- est of (i) the day on which the person becomes contractu- ally obligated to enter into the reportable transac- tion, (ii) the day on which the person enters into the re- portable transaction, and 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 68 Page 74 (iii) if the person is described in paragraph (2)(a) and a person described in paragraph (2)(b) enters into the reportable transaction for the benefit of the person described in paragraph (2)(a), the day on which the reportable transaction is entered into; and (b) a person described in paragraph (2)(c) or (d) no later than the earliest particular day described in para- graph (a) for a person described in paragraph (2)(a) or (b) in respect of the reportable transaction. (9) The portion of subsection 237.3(6) of the Act before paragraph (a) is replaced by the follow- ing: Tax benefits disallowed (6) At any time, section 245 is to be read without refer- ence to its subsection (4) in respect of any reportable transaction in respect of a person described in paragraph (2)(a) in relation to the reportable transaction if, at that time, (10) Subsection 237.3(8) of the Act is replaced by the following: Penalty (8) Every person who fails to file an information return in respect of a reportable transaction as required under subsection (2) on or before the day required under sub- section (5) is liable to a penalty equal to (a) if the person is described in paragraph (2)(a) or (b), (i) if the person is a corporation and the carrying value of the corporation’s assets is greater than or equal to $50 million for its last taxation year that ends prior to the day on which the information re- turn is required to be filed under subsection (5), $2,000 multiplied by the number of weeks dur- ing which the failure continues, to a maximum amount equal to the greater of (A) $100,000, and (B) 25% of the amount of the tax benefit in re- spect of the reportable transaction, and (ii) in any other case, $500 multiplied by the num- ber of weeks during which the failure continues, to a maximum amount equal to the greater of (A) $25,000, and 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 68 Page 75 (B) 25% of the amount of the tax benefit in re- spect of the reportable transaction; and (b) if the person is described in paragraph (2)(c) or (d), the total of (i) the amount of the fees charged by that person in respect of the reportable transaction, (ii) $10,000, and (iii) $1,000 multiplied by the number of days dur- ing which the failure continues, up to a maximum of $100,000. Penalty – deeming rule (8.1) If a person described in both paragraphs (2)(b) and (d) is liable to a penalty under subsection (8) in respect of a reportable transaction, the amount of the penalty is deemed to be equal to the greater of the amounts deter- mined under paragraphs (8)(a) and (b). Carrying value (8.2) For the purpose of subparagraph (8)(a)(i), the car- rying value of the assets of a corporation is to be deter- mined in accordance with paragraphs 181(3)(a) and (b). (11) Subsections 237.3(9) and (10) of the Act are repealed. (12) Subsection 237.3(13) of the Act is replaced by the following: Application of sections 231 to 231.3 (13) Without restricting the generality of sections 231 to 231.3, even if a return of income has not been filed by a taxpayer under section 150 for a taxation year of the tax- payer in which a transaction occurs that is relevant to the tax benefit referred to in paragraph (2)(a) that results (or is expected to result) from the reportable transaction, sections 231 to 231.3 apply, with such modifications as the circumstances require, for the purpose of permitting the Minister to verify or ascertain any information in re- spect of the reportable transaction. (13) Subsection 237.3(17) of the Act is replaced by the following: Solicitor-client privilege (17) For greater certainty, this section does not require the disclosure of information if it is reasonable to believe that the information is subject to solicitor-client privi- lege. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 68 Page 76 (14) Subsections (1) to (10) and (12) to (13) apply with respect to reportable transactions entered into after this Act receives royal assent. The pro- visions of the Act repealed by subsection (11) continue to apply in respect of reportable trans- actions entered into before this Act receives roy- al assent. 69 (1) The Act is amended by adding the follow- ing after section 237.3: Definitions 237.4 (1) The following definitions apply in this section. advisor, in respect of a notifiable transaction, means each person who provides, directly or indirectly in any manner whatever, any assistance or advice with respect to creating, developing, planning, organizing or imple- menting the notifiable transaction, to another person (in- cluding any person who enters into the notifiable trans- action for the benefit of another person). (conseiller) fee, in respect of a notifiable transaction, has the same meaning as in subsection 237.3(1). (honoraires) notifiable transaction, at any time, means (a) a transaction that is the same as, or substantially similar to, a transaction that is designated at that time by the Minister under subsection (3); and (b) a transaction in a series of transactions that is the same as, or substantially similar to, a series of transac- tions that is designated at that time by the Minister under subsection (3). (opération à signaler) person includes a partnership. (personne) promoter, in respect of a notifiable transaction, has the same meaning as in subsection 237.3(1). (promoteur) tax benefit has the same meaning as in subsection 245(1). (avantage fiscal) tax treatment has the same meaning as in subsection 237.3(1). (traitement fiscal) transaction has the same meaning as in subsection 245(1). (opération) 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 68-69 Page 77 Interpretation – substantially similar (2) For the purposes of the definition notifiable transac- tion in subsection (1), the term “substantially similar” (a) includes any transaction, or series of transactions, in respect of which a person is expected to obtain the same or similar types of tax consequences (as de- fined in subsection 245(1)) and that is either factually similar or based on the same or similar tax strategy; and (b) is to be interpreted broadly in favour of disclosure. Designation of notifiable transactions (3) The Minister may designate for the purposes of this section, with the concurrence of the Minister of Finance, in such manner as the Minister considers appropriate, transactions or series of transactions. Requirement to file return (4) An information return in prescribed form and con- taining prescribed information in respect of a notifiable transaction must be filed with the Minister by (a) every person for whom a tax benefit results, or for whom a tax benefit is expected to result based on the person’s tax treatment of the notifiable transaction, from (i) the notifiable transaction, (ii) any other notifiable transaction that is part of a series of transactions that includes the notifiable transaction, or (iii) a series of transactions that includes the notifi- able transaction; (b) every person who has entered into, for the benefit of a person described in paragraph (a), the notifiable transaction; (c) every advisor or promoter in respect of the notifi- able transaction; and (d) every person who is not dealing at arm’s length with an advisor or promoter described in paragraph (c) and who is or was entitled, either immediately or in the future and either absolutely or contingently, to a fee in respect of the notifiable transaction. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 69 Page 78 Application (5) For the purpose of subsection (4), if any particular person that is an employer or a partnership is required to file an information return in respect of a notifiable trans- action under paragraph (4)(c) or (d), the filing of an in- formation return required under those paragraphs by the particular person in respect of the notifiable transaction in prescribed form and manner is deemed to have been made by each employee or partner of the particular per- son in respect of the particular transaction. Due diligence (6) Paragraphs (4)(a) and (b) do not apply to a person in respect of a notifiable transaction if the person has exer- cised the degree of care, diligence and skill in determin- ing whether the transaction is a notifiable transaction that a reasonably prudent person would have exercised in comparable circumstances. Reasonable expectation to know (7) Paragraphs (4)(c) and (d) do not apply to a person in respect of a notifiable transaction unless the person knows or should reasonably be expected to know that the transaction was a notifiable transaction. Clerical or secretarial services (8) For greater certainty, subsection (4) does not apply to a person solely because the person provided clerical ser- vices or secretarial services with respect to the notifiable transaction. Time for filing return (9) An information return required under subsection (4) to be filed with the Minister for a notifiable transaction must be filed by (a) a person described in paragraph (4)(a) or (b) on or before the particular day that is 90 days after the earli- est of (i) the day on which the person becomes contractu- ally obligated to enter into the notifiable transac- tion, (ii) the day on which the person enters into the no- tifiable transaction, and (iii) if the person is described in paragraph (4)(a) and a person described in paragraph (4)(b) enters into the notifiable transaction for the benefit of the person described in paragraph (4)(a), the day on which the notifiable transaction is entered into; and 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 69 Page 79 (b) a person described in paragraph (4)(c) or (d) no later than the earliest particular day described in para- graph (a) for a person described in paragraph (4)(a) or (b) in respect of the notifiable transaction. Clarification of reporting transactions in series (10) For greater certainty, if subsection (4) applies to a person in respect of each transaction that is part of a se- ries of transactions that includes a notifiable transaction, the filing of the information return by the person that re- ports each transaction in the series is deemed to satisfy the obligation of the person under subsection (4) in re- spect of each transaction so reported. Assessments (11) Notwithstanding subsections 152(4) to (5), the Min- ister may make any assessments, determinations and re- determinations that are necessary to give effect to sub- section (12). Penalty (12) Every person who fails to file an information return in respect of a notifiable transaction as required under subsection (4) on or before the particular day required under subsection (9) is liable to a penalty equal to (a) if the person is described in paragraph (4)(a) or (b), (i) if the person is a corporation and the carrying value of the corporation’s assets is greater than or equal to $50 million for its last taxation year that ends prior to the day on which the information re- turn is required to be filed under subsection (4), $2,000 multiplied by the number of weeks dur- ing which the failure continues, to a maximum amount equal to the greater of (A) $100,000, and (B) 25% of the amount of the tax benefit in re- spect of the notifiable transaction, and (ii) in any other case, $500 multiplied by the num- ber of weeks during which the failure continues, to a maximum amount equal to the greater of (A) $25,000, and (B) 25% of the amount of the tax benefit in re- spect of the notifiable transaction; and (b) if the person is described in paragraph (4)(c) or (d), the total of 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 69 Page 80 (i) the amount of the fees charged by that person in respect of the notifiable transaction, (ii) $10,000, and (iii) $1,000 multiplied by the number of days dur- ing which the failure continues, up to a maximum of $100,000. Penalty – deeming rule (13) If a person described in both paragraphs (4)(b) and (d) is liable to a penalty under subsection (12) in respect of a notifiable transaction, the amount of the penalty is deemed to be equal to the greater of the amounts deter- mined under paragraphs (12)(a) and (b). Penalty – non-application (14) For greater certainty, if any person is deemed to have filed an information return in prescribed form and manner in respect of a particular notifiable transaction under subsection (5), that person is not liable to a penalty under subsection (12) in respect of the particular transac- tion. Carrying value (15) For the purpose of subparagraph (12)(a)(i), the car- rying value of the assets of a corporation is to be deter- mined in accordance with paragraphs 181(3)(a) and (b). Return – not an admission (16) The filing of an information return under this sec- tion by a person in respect of a notifiable transaction is not an admission by the person that any transaction is part of a series of transactions. Application of sections 231 to 231.3 (17) Without restricting the generality of sections 231 to 231.3, even if a return of income has not been filed by a taxpayer under section 150 for a taxation year of the tax- payer in which a transaction occurs that is relevant to the tax benefit referred to in paragraph (4)(a) that results (or is expected to result) from a notifiable transaction, sec- tions 231 to 231.3 apply, with such modifications as the circumstances require, for the purpose of permitting the Minister to verify or ascertain any information in respect of the notifiable transaction. Solicitor-client privilege (18) For greater certainty, this section does not require the disclosure of information if it is reasonable to believe 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 69 Page 81 that the information is subject to solicitor-client privi- lege. (2) Subsection (1) applies with respect to notifi- able transactions entered into after this Act re- ceives royal assent. 70 (1) The Act is amended by adding the follow- ing after section 237.4: Definitions 237.5 (1) The following definitions apply in this section. consolidated financial statements has the same mean- ing as in subsection 233.8(1). (états financiers consoli- dés) person includes a partnership. (personne) relevant financial statements of a corporation for a taxation year, means audited financial statements that are prepared (a) in respect of (i) the corporation, or (ii) a group, of which the corporation is a member, of two or more persons required to prepare consoli- dated financial statements for financial reporting purposes under applicable accounting principles; (b) in accordance with (i) International Financial Reporting Standards, or (ii) other country-specific generally accepted ac- counting principles (such as U.S. generally accepted accounting principles) relevant for corporations that are listed on a stock exchange outside Canada; and (c) for a period of time that ends in the taxation year. (états financiers de référence) reportable uncertain tax treatment, of a corporation for a taxation year, means a tax treatment of the corpora- tion in respect of which uncertainty is reflected in rele- vant financial statements of the corporation for the year. (traitement fiscal incertain à déclarer) reporting corporation, for a taxation year, means a cor- poration if (a) the corporation has relevant financial statements for the year; 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 69-70 Page 82 (b) the carrying value of the corporation’s assets is greater than or equal to $50 million at the end of the year; and (c) the corporation is required to file a return of in- come for the year under section 150. (société décla- rante) tax treatment, of a corporation, means a treatment in respect of a transaction, or series of transactions, that the corporation uses, or plans to use, in a return of income or an information return (or would use in a return of in- come or an information return if a return of income or an information return were filed) and includes the corpora- tion’s decision not to include a particular amount in a re- turn of income or an information return. (traitement fiscal) transaction has the same meaning as in subsection 245(1). (opération) Filing requirement (2) Every reporting corporation for a taxation year that has one or more reportable uncertain tax treatments for the year must file with the Minister an information re- turn in prescribed form and containing prescribed infor- mation in respect of each reportable uncertain tax treat- ment of the corporation for the year. Filing requirement – deadline (3) An information return required under subsection (2) to be filed by a corporation for a taxation year must be filed with the Minister on or before the corporation’s fil- ing-due date for the year. Assessments (4) Notwithstanding subsections 152(4) to (5), the Minis- ter may make any assessments, determinations and rede- terminations that are necessary to give effect to subsec- tion (5). Penalty (5) Every corporation that fails to report a reportable un- certain tax treatment on an information return as re- quired under subsection (2) on or before the day required under subsection (3) is liable to a penalty, for each such failure to report, equal to $2,000 multiplied by the num- ber of weeks during which the failure continues, up to a maximum of $100,000. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 70 Page 83 Due diligence (6) A corporation required to file an information return in respect of a reportable uncertain tax treatment is not liable for a penalty under subsection (5) if the corpora- tion has exercised the degree of care, diligence and skill to prevent the failure to file that a reasonably prudent person would have exercised in comparable circum- stances. Return – not an admission (7) The filing of an information return in respect of a re- portable uncertain tax treatment as required under sub- section (2) by a corporation is not an admission by the corporation that (a) the tax treatment is not in accordance with this Act or the regulations; or (b) any transaction is part of a series of transactions. Application of sections 231 to 231.3 (8) Without restricting the generality of sections 231 to 231.3, if a corporation is required to file an information return under subsection (2) in respect of a reportable un- certain tax treatment of the corporation for a taxation year, even if a return of income has not been filed by the corporation under section 150 for the year, sections 231 to 231.3 apply, with such modifications as the circum- stances require, for the purpose of permitting the Minis- ter to verify or ascertain any information in respect of the reportable uncertain tax treatment including, for greater certainty, any information relating to any transaction, or series of transactions, to which the reportable uncertain tax treatment relates. Carrying value (9) For the purposes of the definition reporting corpo- ration in subsection (1), the carrying value of the assets of a corporation is to be determined in accordance with paragraphs 181(3)(a) and (b). (2) Subsection (1) applies to taxation years that begin after 2022, except that subsection 237.5(5) of the Act, as enacted by subsection (1), does not ap- ply to taxation years that begin before this Act re- ceives royal assent. 71 Paragraph 241(4)(d) of the Act is amended by adding the following after subparagraph (xx): (xx.1) to an official of 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 70-71 Page 84 (A) the Department of Employment and Social Development or the Department of Health, sole- ly for the purpose of the administration or en- forcement of the Canadian Dental Care Plan es- tablished under the authority of the Department of Health Act in respect of dental service for in- dividuals, or (B) the Department of Health solely for the pur- pose of the formulation or evaluation of policy for that plan, 72 Subsection 244(14.1) of the Act is replaced by the following: Date when electronic notice sent (14.1) If a notice or other communication in respect of an individual, other than a notice or other communica- tion that refers to the business number of a person or partnership, is made available in electronic format such that it can be read or perceived by an individual or a computer system or other similar device, the notice or other communication is presumed to be sent to the indi- vidual and received by the individual on the date that an electronic message is sent, to the electronic address most recently provided by the individual to the Minister for the purposes of this subsection, informing the individual that a notice or other communication requiring the individu- al’s immediate attention is available in the individual’s secure electronic account. A notice or other communica- tion is considered to be made available if it is posted by the Minister in the individual’s secure electronic account and the individual has authorized that notices or other communications may be made available in this manner and has not before that date revoked that authorization in a manner specified by the Minister. Date when electronic notice sent — My Business Account (14.2) A notice or other communication that is made available in electronic format such that it can be read or perceived by an individual or a computer system or other similar device, and that refers to the business number of a person or partnership, is presumed to be sent to the person or partnership and received by the person or part- nership on the date that it is posted by the Minister in the secure electronic account in respect of a business number of the person or partnership, unless the person or part- nership has requested, 30 days prior to that date, in a manner specified by the Minister, that the notice or other communication be sent by mail. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 71-72 Page 85 73 (1) The definitions small business bond and small business development bond in subsection 248(1) of the Act are repealed. (2) Paragraph (c) of the definition dividend rental arrangement in subsection 248(1) of the Act is re- placed by the following: (b.1) any specified hedging transaction, in respect of a DRA share of the person, (c) any synthetic equity arrangement (other than a specified hedging transaction), in respect of a DRA share of the person, and (3) Subparagraph (i.1)(ii) of the definition term preferred share in subsection 248(1) of the Act is replaced by the following: (ii) it may reasonably be considered that the share was issued or acquired as part of a transaction or event or series of transactions or events one of the main purposes of which was to avoid or limit the application of subsection 112(2.1), 138(6) or 258(3), (4) Subparagraph (j)(ii) of the definition term preferred share in subsection 248(1) of the Act is replaced by the following: (ii) one of the main purposes for the issue of the particular share or for the modification of its terms or conditions was to avoid a limitation provided by subsection 112(2.1) or 138(6) in respect of a deduc- tion or to avoid or limit the application of subsec- tion 258(3), (5) Subsection 248(1) of the Act is amended by adding the following in alphabetical order: specified hedging transaction, in respect of a DRA share of a person or partnership (referred to in this 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 73 Page 86 definition as the “particular person”), means a transac- tion (in this definition, as defined in subsection 245(1)) or series of transactions that satisfies the following con- ditions: (a) it is entered into by (i) the particular person if the particular person is a registered securities dealer or a partnership each member of which is a registered securities dealer, or (ii) a registered securities dealer or a partnership each member of which is a registered securities dealer (in either case, referred to in this definition as the “connected dealer”), if the connected dealer does not deal at arm’s length with, or is affiliated with, the particular person, (b) it has the effect, or would have the effect if the transaction or series were entered into by the particu- lar person, of eliminating all or substantially all of the particular person’s risk of loss and opportunity for gain or profit in respect of the DRA share, determined without regard to any other transaction or series en- tered into in respect of the DRA share, (c) if paragraph 260(6)(a) were read without reference to subsection 260(6.2), an amount in respect of the transaction or series would be deductible by the par- ticular person or the connected dealer under para- graph 260(6)(a), and (d) if the transaction or series is entered into by the connected dealer, it can reasonably be considered that the particular person or connected dealer knew or ought to have known that the effect described in para- graph (b) would result; (opération de couverture déterminée) (6) Subsections (2) and (5) apply in respect of div- idends that are paid or become payable on or af- ter April 7, 2022. However, subsections (2) and (5) do not apply in respect of dividends paid or payable before October 2022, if the specified hedg- ing transaction was entered into before April 7, 2022. (7) Subsections (3) and (4) apply in respect of amounts received on or after August 9, 2022. 74 The portion of subsection 249.1(1) of the French version of the Act before paragraph (a) is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 73-74 Page 87 Définition de exercice 249.1 (1) Pour l’application de la présente loi, l’exer- cice d’une entreprise ou d’un bien d’une personne ou d’une société de personnes s’entend de la période pour laquelle les comptes correspondants de la personne ou de la société de personnes sont arrêtés pour l’établissement d’une cotisation en vertu de la présente loi. L’exercice ne peut toutefois se prolonger : 75 (1) The definitions attribute trading restriction and specified provision in subsection 256.1(1) of the Act are replaced by the following: attribute trading restriction means a restriction on the use of a tax attribute arising on the application, either alone or in combination with other provisions, of any of this section, subsections 10(10) and 13(24), section 37, subsections 66(11.4) and (11.5), 66.7(10) and (11), 69(11) and 88(1.1) and (1.2), sections 111 and 127, subsections 181.1(7), 190.1(6) and 249(4), section 251.2 and subsec- tion 256(7). (restriction au commerce d’attributs) specified provision means any of subsections 10(10) and 13(24), paragraph 37(1)(h), subsections 66(11.4) and (11.5), 66.7(10) and (11), 69(11) and 111(4) to (5.3), para- graphs (j) and (k) of the definition investment tax credit in subsection 127(9), subsections 181.1(7) and 190.1(6), section 251.2 and any provision of similar effect. (dispo- sitions déterminées) (2) Subsection 256.1(6) of the Act is replaced by the following: Deemed acquisition of control (6) If, at any time as part of a transaction or event or se- ries of transactions or events, control of a particular cor- poration is acquired by a person or group of persons and it can reasonably be concluded that one of the main rea- sons for the transaction or event or any transaction or event in the series of transactions or events is so that a specified provision does not apply to one or more corpo- rations, the attribute trading restrictions are deemed to apply to each of those corporations as if control of each of those corporations were acquired at that time. (3) Subsections (1) and (2) are deemed to have come into force on August 9, 2022. 76 (1) Paragraph 260(6)(a) of the Act is replaced by the following: (a) if the taxpayer is a registered securities dealer and the particular amount is deemed by subsection (5.1) to 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 74-76 Page 88 have been received as a taxable dividend, no more than 2/3 of the particular amount (unless, for greater certainty, the particular amount is an amount for which a deduction in computing income may be claimed under subsection (6.1) or (6.2) by the taxpay- er); or (2) Section 260 of the Act is amended by adding the following after subsection (6.1): Deductible amount for registered securities dealer (6.2) If a registered securities dealer enters into a speci- fied hedging transaction in respect of a DRA share of the registered securities dealer or a person that does not deal at arm’s length with, or is affiliated with, the registered securities dealer, there may be deducted in computing the income of the registered securities dealer under Part I from a business or property for a taxation year an amount (other than any portion of the amount for which a deduction in computing income may be claimed under subsection (6.1) by the registered securities dealer) equal to the lesser of (a) the total of all amounts each of which is an amount that the registered securities dealer becomes obligated in the taxation year to pay to another person as com- pensation for a dividend under the specified hedging transaction that, if paid, would be deemed by subsec- tion (5.1) to have been received by another person as a taxable dividend, and (b) the amount of the dividends that were received in respect of the DRA share by the registered securities dealer or the person that does not deal at arm’s length with, or is affiliated with, the registered securities dealer (as the case may be, referred to as the “dividend recipient” in this paragraph) and that were identified in the dividend recipient’s return of income under Part I for the year as an amount in respect of which no amount was deductible because of subsection 112(2.3) in computing the dividend recipient’s taxable income or taxable income earned in Canada. (3) The portion of subsection 260(7) of the Act be- fore paragraph (a) is replaced by the following: Dividend refund (7) For the purpose of section 129, if a corporation pays an amount for which no deduction in computing the cor- poration’s income may be claimed under subsection (6.1) 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 76 Page 89 or (6.2) and subsection (5.1) deems the amount to have been received by another person as a taxable dividend, (4) Paragraphs 260(11)(b) and (c) of the Act are replaced by the following: (b) for the purpose of applying paragraphs (6.1)(a) and (6.2)(a) in respect of the taxation year, to become obligated to pay its specified proportion, for each fis- cal period of the partnership that ends in the taxation year, of the amount the partnership becomes, in that fiscal period, obligated to pay to another person under the arrangement described in that paragraph; and (c) for the purpose of applying section 129 in respect of the taxation year, to have paid (i) if the partnership is not a registered securities dealer, the corporation’s specified proportion, for each fiscal period of the partnership that ends in the taxation year, of each amount paid by the part- nership (other than an amount for which a deduc- tion in computing income may be claimed under subsection (6.1) or (6.2) by the corporation), and (ii) if the partnership is a registered securities deal- er, 1/3 of the corporation’s specified proportion, for each fiscal period of the partnership that ends in the taxation year, of each amount paid by the part- nership (other than an amount for which a deduc- tion in computing income may be claimed under subsection (6.1) or (6.2) by the corporation). (5) Subsections (1) to (4) apply in respect of amounts paid or credited on or after April 7, 2022. 77 (1) The definition qualifying currency in sub- section 261(1) of the Act is amended by adding the following after paragraph (c): (c.1) the currency of Japan; (2) Subparagraph 261(18)(c)(i) of the Act is re- placed by the following: (i) is, or would in the absence of subsections (16) and (17) be, in a functional currency year of the transferor or the transferee and the transferor and the transferee have, or would in the absence of those subsections have, different tax reporting cur- rencies at the transfer time, or 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 76-77 Page 90 (3) Paragraphs 261(20)(a) to (c) of the Act are re- placed by the following: (a) the specified transaction was entered into, directly or indirectly, at any time by the taxpayer and a person (referred to in this subsection as the “related person”) to which the taxpayer is at that time related; (b) the taxpayer and the related person had different tax reporting currencies at any time during the period (referred to in this subsection as the “accrual period”) in which the income, gain or loss accrued; and (c) it would, in the absence of this subsection and sub- section (21), be reasonable to consider that a fluctua- tion at any time in the accrual period in the value of the taxpayer’s tax reporting currency relative to the value of the related person’s tax reporting currency (i) increased the taxpayer’s loss in respect of the specified transaction, (ii) reduced the taxpayer’s income or gain in re- spect of the specified transaction, or (iii) caused the taxpayer to have a loss, instead of income or a gain, in respect of the specified trans- action. (4) Subsection (1) applies to taxation years that begin after 2019. (5) Subsection (2) applies in respect of transfers of property that occur on or after August 9, 2022. (6) Subsection (3) applies in respect of accrual pe- riods (within the meaning assigned by subsection 261(20) of the Act) that begin on or after August 9, 2022. 78 (1) The Act is amended by adding the follow- ing after Part XIX: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 77-78 Page 91 PART XX Reporting Rules for Digital Platform Operators Definitions 282 (1) The following definitions apply in this Part. active seller means a seller that either provides relevant services or sells goods during the reportable period or is paid or credited consideration in connection with rele- vant activities during the reportable period. (vendeur actif) consideration means compensation in any form that is paid or credited to a seller in connection with relevant ac- tivities, the amount of which is known or reasonably knowable by the platform operator. (rémunération) entity has the same meaning as in subsection 270(1). (entité) excluded platform operator means a platform operator that demonstrates to the satisfaction of the Minister that the platform’s entire business model is such that it does not (a) allow sellers to derive a profit from the considera- tion; or (b) have reportable sellers. (opérateur de platforme exclu) excluded seller means a seller (a) that is an entity for which the platform operator facilitated more than 2,000 relevant services for the rental of immovable property in respect of a property listing during the reportable period; (b) that is a governmental entity (as defined in sub- section 270(1)); (c) that is an entity the stock of which is regularly traded on an established securities market (as de- fined in subsection 270(1)) or a related entity (as de- fined in subsection 270(1)) of an entity the stock of which is regularly traded on an established securities market; or (d) for which the platform operator solely facilitated less than 30 relevant activities for the sale of goods and for which the total amount of consideration paid 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 78 Page 92 or credited did not exceed $2,800 during the re- portable period. (vendeur exclu) fiat currency means a currency that is used by a country and is designated as legal tender in that country. (mon- naie fiduciaire) financial account identifier means the unique identify- ing number or reference, available to the platform opera- tor, of the bank account or other payment account to which consideration is paid or credited. (identifiant de compte financier) goods means any tangible property or, for civil law, any corporeal property. (bien) government verification service means an electronic process made available by a reportable jurisdiction to a platform operator for the purposes of ascertaining the identity and residence of a seller. (service public de vé- rification) immovable property means real or immovable proper- ty. (biens immobiliers) partner jurisdiction means each jurisdiction identified as a partner jurisdiction by the Minister on the Internet website of the Canada Revenue Agency or by any other means that the Minister considers appropriate. (juridic- tion partenaire) personal service means a service involving time- or task-based work performed by one or more individuals at the request of a user, unless such work is purely ancillary to the overall transaction, but does not include a service provided by a seller pursuant to an employment relation- ship with the platform operator or a related entity (as defined in subsection 270(1)) of the platform operator. (service personnel) platform means a software, including a website or a part of it and applications, including mobile applications, ac- cessible by users and allowing sellers to be connected to other users for the provision of relevant services or the sale of goods, directly or indirectly, to such users (includ- ing the collection and payment of consideration in re- spect of relevant activities), but does not include, in the provision of relevant services or the sale of goods, soft- ware exclusively allowing without any further interven- tion (a) the processing of payments in relation to relevant activities; (b) listing or advertising in relation to relevant activi- ties; or 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 78 Page 93 (c) redirecting or transferring of users to a platform. (plateforme) platform operator means an entity that contracts with sellers to make available all or part of a platform to such sellers. (opérateur de plateforme) primary address means (a) in respect of a seller that is an individual (other than a trust), the address of the seller’s principal place of residence; and (b) in respect of a seller that is an entity, the address of the seller’s registered office. (adresse principale) property listing includes all immovable property units located at the same street address and offered for rent on a platform by the same seller. (lot) relevant activity means (a) a relevant service; or (b) the sale of goods for consideration. (activité vi- sée) relevant service means, if provided for consideration: (a) the rental of real or immovable property; (b) a personal service; (c) the rental of a means of transport; or (d) a prescribed service. (service visé) reportable jurisdiction means (a) for a reporting platform operator described in paragraph (a) of the definition reporting platform operator, Canada and any partner jurisdiction; and (b) in any other case, Canada. (juridiction soumise à déclaration) reportable period means a calendar year during which a platform operator is a reporting platform operator. (période de déclaration) reportable seller means an active seller, other than an excluded seller, that is determined by the platform opera- tor based on the due diligence procedures set out in sec- tions 283 to 287 to (a) be resident in a reportable jurisdiction; 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 78 Page 94 (b) have provided relevant services for the rental of immovable property located in a reportable jurisdic- tion; or (c) have been paid or credited consideration in con- nection with relevant services for the rental of immov- able property located in a reportable jurisdiction. (vendeur soumis à déclaration) reporting platform operator means a platform opera- tor, other than an excluded platform operator, if (a) it is resident in Canada; (b) it is resident, incorporated or managed in a part- ner jurisdiction, facilitates the provision of relevant activities by sellers resident in Canada or with respect to rental of immovable property located in Canada and elects to be a reporting platform operator; or (c) it is not resident in Canada or a partner jurisdic- tion and it facilitates the provision of relevant activi- ties by sellers resident in Canada or with respect to rental of immovable property located in Canada. (opérateur de plateforme soumis à déclaration) seller means a platform user that is registered at any time during the reportable period on the platform for the provision of a relevant service or the sale of goods. (ven- deur) TIN means (a) the number used by the Minister to identify an in- dividual or entity, including (i) a social insurance number, (ii) a business number, and (iii) an account number issued to a trust; and (b) in respect of a jurisdiction other than Canada, a taxpayer identification number, including a VAT/GST registration number issued by the jurisdiction of the primary address of the seller, or a functional equiva- lent in the absence of a taxpayer identification num- ber. (NIF) 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 78 Page 95 Interpretation (2) This Part relates to the implementation of the Model Rules set out in the Model Rules for Reporting by Plat- form Operators with respect to Sellers in the Sharing and Gig Economy approved by the Council of the Organ- isation for Economic Co-operation and Development and, unless the context otherwise requires, the provisions in this Part are to be interpreted consistently with the Model Rules, as amended from time to time. Excluded seller 283 (1) For the purpose of determining whether a seller is an excluded seller under paragraph (a) or (d) of that definition in subsection 282(1), a reporting platform op- erator may rely on its available records. Excluded seller – entity (2) For the purpose of determining whether a seller that is an entity is an excluded seller under paragraph (b) or (c) of that definition in subsection 282(1), a reporting platform operator may rely on publicly available infor- mation or a confirmation from the seller. Seller information – individual 284 (1) The reporting platform operator must collect the following information for each seller that is an indi- vidual (other than a trust) and that is not an excluded seller (a) the first and last name of the individual; (b) the primary address of the individual; (c) the TIN issued to the individual, including the ju- risdiction of issuance; and (d) the date of birth of the individual. Seller information – entity (2) The reporting platform operator must collect the fol- lowing information for each seller (other than a seller de- scribed in subsection (1)) that is not an excluded seller (a) the legal name of the entity; (b) the primary address of the entity; (c) the TIN issued to the entity, including the jurisdic- tion of issuance; and (d) the business registration number of the entity. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 78 Page 96 Government verification services (3) Notwithstanding subsections (1) and (2), the report- ing platform operator is not required to collect informa- tion pursuant to paragraphs (1)(b) to (d) or (2)(b) to (d) in respect of a seller where the reporting platform opera- tor relies on a government verification service to ascer- tain the identity and residence of the seller. TIN collection (4) Notwithstanding paragraphs (1)(c) and (2)(c) and (d), the TIN or the business registration number, respec- tively, are not required to be collected if (a) the jurisdiction of residence of the seller does not issue a TIN or business registration number to the seller; or (b) the jurisdiction of residence of the seller does not require the collection of the TIN issued to such seller. Verification of seller information 285 (1) The reporting platform operator must deter- mine whether the information collected under subsection 283(2) and sections 284 and 287 is reliable, using all records available to the reporting platform operator, as well as any publicly available electronic interface to as- certain the validity of the TIN. Due diligence (2) Notwithstanding subsection (1), for the completion of the due diligence procedures pursuant to subsection 288(2), the reporting platform operator may determine whether the information collected pursuant to subsection 283(2) and sections 284 and 287 is reliable using electron- ically searchable records available to the reporting plat- form operator. Verifying accuracy (3) For the purpose of paragraph 288(3)(b), despite sub- sections (1) and (2), in instances where the reporting platform operator has reason to know that any of the in- formation items described in section 284 or 287 may be inaccurate by virtue of information provided by the Min- ister, it must verify such information item using reliable, independent-source documents, data or information. Residence 286 (1) A reporting platform operator must consider a seller resident in the jurisdiction of the seller’s primary address. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 78 Page 97 Government verification service (2) Notwithstanding subsection (1), a reporting platform operator must consider a seller resident in each jurisdic- tion confirmed by a government verification service pur- suant to subsection 284(3). Rented immovable property 287 Where a seller provides relevant services for the rental of immovable property, the reporting platform op- erator must collect the address of each property listing. Due diligence 288 (1) A reporting platform operator must complete the due diligence procedures set out in sections 283 to 287 by December 31 of the reportable period. Previously registered accounts (2) Despite subsection (1), the due diligence procedures set out in sections 283 to 287 are required to be complet- ed by December 31 of the second reportable period of the reporting platform operator, for sellers that are already registered on the platform (a) as of January 1, 2024; or (b) as of the date on which an entity becomes a report- ing platform operator. Previous due diligence (3) Notwithstanding subsection (1), a reporting platform operator may rely on the due diligence procedures con- ducted in respect of previous reportable periods, provid- ed (a) the primary address of the seller has been either collected and verified or confirmed within the last 36 months; and (b) the reporting platform operator does not have rea- son to know that the information collected pursuant to sections 283, 284 and 287 is or has become unreliable or incorrect. Active sellers 289 A reporting platform operator may elect to complete the due diligence procedures under sections 283 to 288 in respect of active sellers only. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 78 Page 98 Due diligence by third parties 290 (1) A reporting platform operator may rely on a third-party service provider to fulfil the due diligence obligations under sections 291 and 292, but such obliga- tions remain the responsibility of the reporting platform operator. Partner jurisdiction (2) When a platform operator fulfils the due diligence obligations for a reporting platform operator with respect to the same platform under subsection (1), such platform operator may carry out the due diligence procedures pur- suant to substantially similar rules in its partner jurisdic- tion. Reporting to Minister 291 (1) A reporting platform operator must report to the Minister the information set out in section 292 with respect to the reportable period no later than January 31 of the year following the calendar year in which the seller is identified as a reportable seller. Reporting to seller (2) A reporting platform operator must provide the in- formation set out under section 292 to the reportable sell- er to which it relates no later than January 31 of the year following the calendar year in which the seller is identi- fied as a reportable seller. Reporting not required (3) Notwithstanding subsections (1) and (2), the infor- mation in relation to a reportable seller is neither re- quired to be reported to the Minister nor to be made available to the reportable seller in circumstances where the reporting platform operator has obtained adequate assurances that another platform operator has or will ful- fil the reporting obligations under this section and sec- tion 292 (a) with respect to the reportable seller pursuant to the rules in Canada; or (b) with respect to the reportable seller, other than a reportable seller resident in Canada, under substan- tially similar rules in a partner jurisdiction. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 78 Page 99 Reporting (4) A reporting platform operator required to report in- formation under this section shall report the information in prescribed form. Electronic filing (5) Information required to be reported under this sec- tion shall be filed by way of electronic filing. Currency (6) The information with respect to the consideration paid or credited in a fiat currency must be reported in the currency in which it was paid or credited. In case the consideration was paid or credited in a form other than fiat currency, it should be reported in the local currency of Canada, converted or valued in a manner that is deter- mined consistently by the reporting platform operator. Reporting in respect of quarter (7) The information with respect to the consideration and other amounts must be reported in respect of the quarter in which the consideration was paid or credited. Information reported 292 Each reporting platform operator must report the following information: (a) the name, registered office address and TIN of the reporting platform operator, as well as any business names of any platforms in respect of which the report- ing platform operator is reporting; (b) with respect to each reportable seller that provid- ed relevant services (other than immovable property rental), rented out a means of transportation or sold goods, (i) the items required to be collected pursuant to section 284, (ii) any other TIN, including the jurisdiction of is- suance, available to the reporting platform opera- tor, (iii) any financial account identifiers, insofar as they are available to the reporting platform opera- tor and the jurisdiction of the reportable seller’s residence is specified by the Minister, (iv) if different from the name of the reportable seller, the name of the holder of the financial ac- count to which the consideration is paid or credit- ed, to the extent available to the reporting platform 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 78 Page 100 operator, as well as any other identifying informa- tion available to the reporting platform operator with respect to that account holder, (v) each jurisdiction in which the reportable seller is resident on the basis of the procedures set out in section 286, (vi) the total consideration paid or credited during each quarter of the reportable period and the num- ber of such relevant activities in respect of which it was paid or credited, and (vii) any fees, commissions or taxes withheld or charged by the reporting platform operator during each quarter of the reportable period; and (c) with respect to each reportable seller that provided relevant services for the rental of immovable property, (i) the items required to be collected pursuant to section 284, (ii) any other TIN, including the jurisdiction of is- suance, available to the reporting platform opera- tor, (iii) any financial account identifiers, insofar as they are available to the reporting platform opera- tor and either the jurisdiction of residence of the re- portable seller or the jurisdiction in which the im- movable property is located is specified by the Min- ister, (iv) if different from the name of the reportable seller, the name of the holder of the financial ac- count to which the consideration is paid or credit- ed, to the extent available to the reporting platform operator, as well as any other identifying informa- tion available to the reporting platform operator with respect to the account holder, (v) each jurisdiction in which the reportable seller is resident on the basis of the procedures set out in section 286, (vi) the address of each property listing, deter- mined on the basis of the procedures set out in sec- tion 287, and, if available, the land registration number, (vii) the total consideration paid or credited during each quarter of the reportable period and the num- ber of such relevant services provided with respect to each property listing in respect of which it was paid or credited, 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 78 Page 101 (viii) any fees, commissions or taxes withheld or charged by the reporting platform operator during each quarter of the reportable period, and (ix) if available, the number of days each property listing was rented during the reportable period and the type of each property listing. Production of TIN 293 (1) Every reportable seller shall provide their TIN at the request of a reporting platform operator that is re- quired under this Part to make an information return re- quiring the TIN. Confidentiality of TIN (2) A reporting platform operator required to make an information return referred to in subsection (1) shall not knowingly use, communicate or allow to be communicat- ed, otherwise than as required or authorized under this Act or a regulation, the TIN without the written consent of the reportable seller. Penalty for failure to provide TIN (3) Every reportable seller who fails to provide on re- quest their TIN to a reporting platform operator that is required under this Part to make an information return requiring the TIN is liable to a penalty of $500 for each such failure, unless (a) an application for the assignment of the TIN is made to the relevant reportable jurisdiction not later than 90 days after the request was made and the TIN is provided to the reporting platform operator that re- quested it within 15 days after the reportable seller re- ceived it; or (b) the reportable seller is not eligible to obtain a TIN from the relevant reportable jurisdiction (including because the relevant reportable jurisdiction does not issue TINs). Assessment (4) The Minister may at any time assess any amount payable under subsection (3) by a reportable seller and, if the Minister sends a notice of assessment to the re- portable seller, sections 150 to 163, subsections 164(1) 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Section 78 Page 102 and (1.4) to (7), sections 165 to 167 and Division J of Part I apply with such modifications as the circumstances re- quire. Record keeping 294 (1) Every reporting platform operator shall keep, at its place of business or at such other place as may be des- ignated by the Minister, records that it obtains or creates for the purpose of complying with this Part, including records of documentary evidence. Form of records (2) Every reporting platform operator required by this Part to keep records that does so electronically shall re- tain them in an electronically readable format for the re- tention period referred to in subsection (3). Retention of records (3) Every reporting platform operator that is required to keep, obtain or create records under this Part shall retain those records for a period of at least six years following the end of the last calendar year in respect of which the record is relevant. Anti-avoidance 295 If a person enters into an arrangement or engages in a practice, the primary purpose of which can reason- ably be considered to be to avoid an obligation under this Part, the person is subject to the obligation as if the per- son had not entered into the arrangement or engaged in the practice. (2) Subsection (1) comes into force on January 1, 2024. 79 (1) The schedule to the Act is amended by re- placing “Ford Credit Canada Limited” with “Ford Credit Canada Company/Compagnie Crédit Ford du Canada”. (2) Subsection (1) is deemed to have come into force on January 9, 2017. R.S., c. E-15 Excise Tax Act 80 Subsection 106.1(3.1) of the Excise Tax Act is replaced by the following: Date electronic notice sent (3.1) For the purposes of this Act, if a notice or other communication in respect of a person, other than a no- tice or other communication that refers to the business 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Act Sections 78-80 Page 103 number of a person, is made available in electronic for- mat such that it can be read or perceived by a person or a computer system or other similar device, the notice or other communication is presumed to be sent to the per- son and received by the person on the date that an elec- tronic message is sent, to the electronic address most re- cently provided before that date by the person to the Minister for the purposes of this subsection, informing the person that a notice or other communication requir- ing the person’s immediate attention is available in the person’s secure electronic account. A notice or other communication is considered to be made available if it is posted by the Minister in the person’s secure electronic account and the person has authorized that notices or other communications may be made available in this manner and has not before that date revoked that autho- rization in a manner specified by the Minister. Date electronic notice sent — business account (3.2) For the purposes of this Act, a notice or other com- munication in respect of a person that is made available in electronic format such that it can be read or perceived by a person or computer system or other similar device and that refers to the business number of a person is pre- sumed to be sent to the person and received by the per- son on the date that it is posted by the Minister in the se- cure electronic account in respect of the business number of the person, unless the person has requested, at least 30 days before that date, in a manner specified by the Minis- ter, that such notices or other communications be sent by mail. 81 (1) Section 278 of the Act is amended by adding the following before subsection (1): Definition of electronic payment 278 (0.1) In this section, electronic payment means any payment or remittance to the Receiver General that is made through electronic services offered by a person described in any of paragraphs (3)(a) to (d) or by any electronic means specified by the Minister. (2) The portion of subsection 278(3) of the Act be- fore paragraph (a) is replaced by the following: Electronic payment (3) Every person that is required under this Part to pay or remit an amount to the Receiver General shall, if the amount is $10,000 or more, make the payment or 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Excise Tax Act Sections 80-81 Page 104 remittance by way of electronic payment, unless the per- son cannot reasonably pay or remit the amount in that manner, to the account of the Receiver General at or through (3) Subsections (1) and (2) apply in respect of payments and remittances made after 2023. 82 (1) The Act is amended by adding the follow- ing after section 280.11: Penalty — electronic payment 280.12 Every person that fails to comply with subsec- tion 278(3) is liable to a penalty equal to $100 for each such failure. (2) Subsection (1) applies in respect of payments and remittances made after 2023. 83 Paragraph 295(5)(d) of the Act is amended by adding the following after subparagraph (xi): (xi.1) to an official of (A) the Department of Employment and Social Development or the Department of Health, sole- ly for the purpose of the administration or en- forcement of the Canadian Dental Care Plan es- tablished under the authority of the Department of Health Act in respect of dental service for in- dividuals, or (B) the Department of Health solely for the pur- pose of the formulation or evaluation of policy for that plan; 84 Subsection 335(10.1) of the Act is replaced by the following: Date electronic notice sent (10.1) For the purposes of this Part, if a notice or other communication in respect of a person, other than a no- tice or other communication that refers to the business number of a person, is made available in electronic for- mat such that it can be read or perceived by a person or a computer system or other similar device, the notice or other communication is presumed to be sent to the per- son and received by the person on the date that an elec- tronic message is sent, to the electronic address most re- cently provided before that date by the person to the Minister for the purposes of this subsection, informing the person that a notice or other communication 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Excise Tax Act Sections 81-84 Page 105 requiring the person’s immediate attention is available in the person’s secure electronic account. A notice or other communication is considered to be made available if it is posted by the Minister in the person’s secure electronic account and the person has authorized that notices or other communications may be made available in this manner and has not before that date revoked that autho- rization in a manner specified by the Minister. Date electronic notice sent — business account (10.2) For the purposes of this Part, a notice or other communication in respect of a person that is made avail- able in electronic format such that it can be read or per- ceived by a person or computer system or other similar device and that refers to the business number of a person is presumed to be sent to the person and received by the person on the date that it is posted by the Minister in the secure electronic account in respect of the business num- ber of the person, unless the person has requested, at least 30 days before that date, in a manner specified by the Minister, that such notices or other communications be sent by mail. R.S., c. T-3 Tax Rebate Discounting Act 85 Paragraphs 4(2)(a) and (b) of the Tax Rebate Discounting Act are replaced by the following: (a) including with the return of income, other than a return of income deemed by subsection 150.1(3) of the Income Tax Act to have been filed for the purposes of section 150 of that Act, a true copy of the statement re- ferred to in subparagraph (1)(b)(i) as provided to the client, and (b) providing to such person and within such period of time as the Minister may specify a true copy of the statement referred to in subparagraph (1)(b)(i) as pro- vided to the client, 2002, c. 9, s. 5 Air Travellers Security Charge Act 86 (1) Section 20 of the Air Travellers Security Charge Act is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Excise Tax Act Sections 84-86 Page 106 Definition of electronic payment 20 (1) In this section, electronic payment means any payment to the Receiver General that is made through electronic services offered by a person described in any of paragraphs (2)(a) to (d) or by any electronic means speci- fied by the Minister. Electronic payment (2) Every person that is required under this Act to pay an amount to the Receiver General shall, if the amount is $10,000 or more, make the payment by way of electron- ic payment, unless the person cannot reasonably pay the amount in that manner, to the account of the Receiver General at or through (a) a bank; (b) a credit union; (c) a corporation that is authorized under the laws of Canada or a province to carry on the business of offer- ing its services as a trustee to the public; or (d) a corporation that is authorized under the laws of Canada or a province to accept deposits from the pub- lic and that carries on the business of lending money on the security of real property or immovables or in- vesting in mortgages on real property or hypothecs on immovables. (2) Subsection (1) applies in respect of payments made after 2023. 87 (1) The Act is amended by adding the follow- ing after section 53: Penalty — electronic payment 54 Every person that fails to comply with subsection 20(2) is liable to a penalty equal to $100 for each such failure. (2) Subsection (1) applies in respect of payments made after 2023. 88 Subsection 83(9.1) of the Act is replaced by the following: Date electronic notice sent (9.1) For the purposes of this Act, if a notice or other communication in respect of a person, other than a no- tice or other communication that refers to the business number of a person, is made available in electronic for- mat such that it can be read or perceived by a person or a computer system or other similar device, the notice or 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Air Travellers Security Charge Act Sections 86-88 Page 107 other communication is presumed to be sent to the per- son and received by the person on the date that an elec- tronic message is sent, to the electronic address most re- cently provided before that date by the person to the Minister for the purposes of this subsection, informing the person that a notice or other communication requir- ing the person’s immediate attention is available in the person’s secure electronic account. A notice or other communication is considered to be made available if it is posted by the Minister in the person’s secure electronic account and the person has authorized that notices or other communications may be made available in this manner and has not before that date revoked that autho- rization in a manner specified by the Minister. Date electronic notice sent – business account (9.2) For the purposes of this Act, a notice or other com- munication in respect of a person that is made available in electronic format such that it can be read or perceived by a person or computer system or other similar device and that refers to the business number of a person is pre- sumed to be sent to the person and received by the per- son on the date that it is posted by the Minister in the se- cure electronic account in respect of the business number of the person, unless the person has requested, at least 30 days before that date, in a manner specified by the Minis- ter, that such notices or other communications be sent by mail. 2002, c. 22 Excise Act, 2001 89 (1) Section 163 of the Excise Act, 2001 is re- placed by the following: Definition of electronic payment 163 (1) In this section, electronic payment means any payment to the Receiver General that is made through electronic services offered by a person described in any of paragraphs (2)(a) to (e) or by any electronic means speci- fied by the Minister. Electronic payment (2) Every person that is required under this Act to pay any duty, interest or other amount to the Receiver Gener- al shall, if the amount is $10,000 or more, make the pay- ment by way of electronic payment, unless the person cannot reasonably pay the amount in that manner, to the account of the Receiver General at or through (a) a bank; 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Air Travellers Security Charge Act Sections 88-89 Page 108 (b) an authorized foreign bank, as defined in section 2 of the Bank Act, that is not subject to the restrictions and requirements referred to in subsection 524(2) of that Act; (c) a credit union; (d) a corporation that is authorized under the laws of Canada or a province to carry on the business of offer- ing its services as a trustee to the public; or (e) a corporation that is authorized under the laws of Canada or a province to accept deposits from the pub- lic and that carries on the business of lending money on the security of real property or immovables or in- vesting in mortgages on real property or hypothecs on immovables. (2) Subsection (1) applies in respect of payments made after 2023. 90 Paragraph 211(6)(e) of the Act is amended by adding the following after subparagraph (xii): (xii.1) to an official of (A) the Department of Employment and Social Development or the Department of Health, sole- ly for the purpose of the administration or en- forcement of the Canadian Dental Care Plan es- tablished under the authority of the Department of Health Act in respect of dental service for in- dividuals, or (B) the Department of Health solely for the pur- pose of the formulation or evaluation of policy for that plan; 91 (1) The Act is amended by adding the follow- ing after section 251.1: Penalty — electronic payment 251.11 Every person that fails to comply with subsec- tion 163(2) is liable to a penalty equal to $100 for each such failure. (2) Subsection (1) applies in respect of payments made after 2023. 92 Subsection 301(9.1) of the Act is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Excise Act, 2001 Sections 89-92 Page 109 Date electronic notice sent (9.1) For the purposes of this Act, if a notice or other communication in respect of a person, other than a no- tice or other communication that refers to the business number of a person, is made available in electronic for- mat such that it can be read or perceived by a person or a computer system or other similar device, the notice or other communication is presumed to be sent to the per- son and received by the person on the date that an elec- tronic message is sent, to the electronic address most re- cently provided before that date by the person to the Minister for the purposes of this subsection, informing the person that a notice or other communication requir- ing the person’s immediate attention is available in the person’s secure electronic account. A notice or other communication is considered to be made available if it is posted by the Minister in the person’s secure electronic account and the person has authorized that notices or other communications may be made available in this manner and has not before that date revoked that autho- rization in a manner specified by the Minister. Date electronic notice sent — business account (9.2) For the purposes of this Act, a notice or other com- munication in respect of a person that is made available in electronic format such that it can be read or perceived by a person or computer system or other similar device and that refers to the business number of a person is pre- sumed to be sent to the person and received by the per- son on the date that it is posted by the Minister in the se- cure electronic account in respect of the business number of the person, unless the person has requested, at least 30 days before that date, in a manner specified by the Minis- ter, that such notices or other communications be sent by mail. 2018, c. 12, s. 186 Greenhouse Gas Pollution Pricing Act 93 (1) Section 86 of the Greenhouse Gas Pollu- tion Pricing Act is replaced by the following: Definition of electronic payment 86 (1) In this section, electronic payment means any payment to the Receiver General that is made through electronic services offered by a person described in any of paragraphs (2)(a) to (d) or by any electronic means speci- fied by the Minister. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Excise Act, 2001 Sections 92-93 Page 110 Electronic payment (2) Every person that is required under this Part to pay an amount to the Receiver General must, if the amount is $10,000 or more, make the payment by way of electron- ic payment, unless the person cannot reasonably pay the amount in that manner, to the account of the Receiver General at or through (a) a bank; (b) a credit union; (c) a corporation that is authorized under the laws of Canada or a province to carry on the business of offer- ing its services as a trustee to the public; or (d) a corporation that is authorized under the laws of Canada or a province to accept deposits from the pub- lic and that carries on the business of lending money on the security of real property or immovables or in- vesting in indebtedness on the security of mortgages on real property or hypothecs on immovables. (2) Subsection (1) applies in respect of payments made after 2023. 94 (1) The Act is amended by adding the follow- ing after section 123: Penalty — electronic payments 123.1 Every person that fails to comply with subsection 86(2) is liable to a penalty equal to $100 for each such failure. (2) Subsection (1) applies in respect of payments made after 2023. 95 Subsection 164(12) of the Act is replaced by the following: Date electronic notice sent (12) For the purposes of this Part, if a notice or other communication in respect of a person, other than a no- tice or other communication that refers to the business number of a person, is made available in electronic for- mat such that it can be read or perceived by a person or a computer system or other similar device, the notice or other communication is presumed to be sent to the per- son and received by the person on the date that an elec- tronic message is sent, to the electronic address most re- cently provided before that date by the person to the Minister for the purposes of this subsection, informing the person that a notice or other communication requir- ing the person’s immediate attention is available in the person’s secure electronic account. A notice or other 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Greenhouse Gas Pollution Pricing Act Sections 93-95 Page 111 communication is considered to be made available if it is posted by the Minister in the person’s secure electronic account and the person has authorized that notices or other communications may be made available in this manner and has not before that date revoked that autho- rization in a manner specified by the Minister. Date electronic notice sent – business account (12.1) For the purposes of this Part, a notice or other communication in respect of a person that is made avail- able in electronic format such that it can be read or per- ceived by a person or computer system or other similar device and that refers to the business number of a person is presumed to be sent to the person and received by the person on the date that it is posted by the Minister in the secure electronic account in respect of the business num- ber of the person, unless the person has requested, at least 30 days before that date, in a manner specified by the Minister, that such notices or other communications be sent by mail. C.R.C., c. 945 Income Tax Regulations 96 (1) Subsection 202(6) of the Income Tax Regu- lations is replaced by the following: (6) A non-resident person, or an authorized foreign bank, that is deemed under subsection 212(13.2) or para- graph 212(13.3)(a) of the Act to be a person resident in Canada for the purposes of Part XIII of the Act, is deemed, in the same circumstances, to be a person resi- dent in Canada for the purposes of subsections (1) and (2). (2) Subsection (1) applies to amounts paid or credited after 2022. 97 (1) Subsection 205(3) of the Regulations is amended by adding the following in alphabetical order: Part XX Information Return – Digital Platform Operators (2) Subsection (1) comes into force on January 1, 2024. 98 (1) The portion of subsection 205.1(1) of the Regulations, before the list of types of prescribed information returns, is replaced by the follow- ing: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Greenhouse Gas Pollution Pricing Act Sections 95-98 Page 112 205.1 (1) For the purpose of subsection 162(7.02) of the Act, the following types of information returns are pre- scribed and must be filed electronically if more than five information returns of that type are required to be filed for a calendar year: (2) The portion of subsection 205.1(2) of the Regu- lations before paragraph (a) is replaced by the following: (2) For purposes of subsection 150.1(2.1) of the Act, a prescribed corporation is any corporation except (3) Subsection (1) applies in respect of informa- tion returns filed after 2023. (4) Subsection (2) applies to taxation years that begin after 2023. 99 (1) Subsection 209(1) of the Regulations is re- placed by the following: 209 (1) A person who is required by section 200, 201, 202, 203, 204, 212, 214 (other than subsection 214(1.1)), 215 (other than subsection 215(2.1)), 217 or 218, subsec- tion 219(2) or 223(2) or section 228, 229, 230, 232, 233 or 234 to make an information return shall forward to each taxpayer to whom the return relates two copies of the portion of the return that relates to that taxpayer. (2) The portion of subsection 209(5) of the Regu- lations before paragraph (a) is replaced by the following: (5) A person may provide a Statement of Remuneration Paid (T4) information return, a Tuition and Enrolment Certificate, a Statement of Pension, Retirement, Annuity, and Other Income (T4A) information return or a State- ment of Investment Income (T5) information return, as required under subsection (1), as a single document in an electronic format (instead of the two copies required un- der subsection (1)) to the taxpayer to whom the return relates, on or before the date on which the return is to be filed with the Minister, unless (3) The portion of subsection 209(5) of the Regu- lations before paragraph (a) is replaced by the following: (5) A person may provide a Statement of Remuneration Paid (T4) information return, a Tuition and Enrolment Certificate, a FHSA information return, a Statement of 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Regulations Sections 98-99 Page 113 Pension, Retirement, Annuity, and Other Income (T4A) information return or a Statement of Investment Income (T5) information return, as required under subsection (1), as a single document in an electronic format (instead of the two copies required under subsection (1)) to the taxpayer to whom the return relates, on or before the date on which the return is to be filed with the Minister, unless (4) Subsection (1) applies to the 2023 and subse- quent taxation years. (5) Subsection (2) applies in respect of informa- tion returns filed after 2021. (6) Subsection (3) is deemed to have come into force on April 1, 2023. 100 (1) Section 214 of the Regulations is amended by adding the following after subsection (1): (1.1) The issuer of a registered retirement savings plan shall make an information return in prescribed form for each calendar year containing the total fair market value of all property held by the plan at the end of the year. (2) Subsection (1) applies to the 2023 and subse- quent taxation years. 101 (1) Section 215 of the Regulations is amended by adding the following after subsection (2): (2.1) Every carrier of a registered retirement income fund shall make an information return in prescribed form for each calendar year containing the total fair mar- ket value of all property held by the fund at the end of the year. (2) Subsection (1) applies to the 2023 and subse- quent taxation years. 102 (1) Paragraph (a) of the definition Canadian equity property in subsection 2400(1) of the Regu- lations is replaced by the following: (a) a share of the capital stock of, or an income bond or income debenture issued by, a person (other than a corporation affiliated with the taxpayer) resident in Canada or a Canadian partnership; or 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Regulations Sections 99-102 Page 114 (2) Paragraph (a) of the definition equity property in subsection 2400(1) of the Regulations is re- placed by the following: (a) a share of the capital stock of, or an income bond or income debenture, issued by, another person (other than a corporation affiliated with the taxpayer) or partnership; or 103 (1) Subsection 3900(2) of the Regulations is replaced by the following: (2) For the purpose of paragraph 20(1)(v) of the Act, the amount allowed for a taxation year in respect of taxes on income from mining operations of a taxpayer is the total of all amounts each of which is (a) an eligible tax that is paid or payable by the tax- payer (i) on the income of the taxpayer for the taxation year from mining operations, or (ii) on a non-Crown royalty included in computing the income of the taxpayer for the taxation year; (b) an eligible tax that is paid by the taxpayer in the taxation year on either the income of the taxpayer for a previous taxation year from mining operations or a non-Crown royalty included in computing the income of the taxpayer for a previous taxation year, if (i) the amount was deductible in computing the in- come of the taxpayer for the previous taxation year, (ii) the amount has not been deducted in comput- ing the income of the taxpayer for a taxation year that is prior to the taxation year, and (iii) an assessment of the taxpayer to take into ac- count a deduction in respect of the eligible tax un- der the Act for the previous taxation year would be precluded because of subsections 152(4) to (5) of the Act; or (c) interest in respect of eligible tax referred to in paragraph (a) or (b) that is paid in the taxation year by the taxpayer to the province imposing the eligible tax. (2) Subsection (1) applies to taxation years that end after 2007. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Regulations Sections 102-103 Page 115 104 (1) Subsection 4802(1) of the Regulations is amended by striking out “and” at the end of para- graph (f) and by adding the following after that paragraph: (f.1) the Pension Benefits Guarantee Fund under the Pension Benefits Act, R.S.O. 1990, c. P.8 and any cor- poration established solely for investing the assets of the Pension Benefits Guarantee Fund; and (2) Section 4802 of the Regulations is amended by adding the following after subsection (1.1): (1.2) For the purposes of paragraph 8502(i.2), if an amount is borrowed (other than an amount described in paragraph (1.1)(c)) at a particular time by a trust de- scribed in subsection (1.1) in relation to defined benefit provisions of one or more registered pension plans that are beneficiaries of the trust, each such defined benefit provision is deemed to have borrowed at the particular time an amount that is equal to the following amount: (a) if paragraph (b) does not apply, the amount deter- mined by the formula A × (B ÷ C) where A is the amount borrowed by the trust at the partic- ular time, B is the fair market value at the particular time of the interest of the defined benefit provision in (i) if the borrowing relates to a particular class of units of the trust, that class of units, and (ii) in any other case, the income and capital of the trust, and C is the fair market value at the particular time of all interests of defined benefit provisions in (i) if the borrowing relates to a particular class of units of the trust, that class of units, and (ii) in any other case, the income and capital of the trust; and (b) the portion of the amount borrowed by the trust at the particular time that is allocated to the defined ben- efit provision under an agreement entered into be- tween the trust and the defined benefit provision, pro- vided that the agreement allocates to the beneficiaries the total amount borrowed by the trust. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Regulations Section 104 Page 116 (1.3) If an amount borrowed by a trust is deemed to have been borrowed by a defined benefit provision under sub- section (1.2), the amount is deemed not to have been bor- rowed by the trust for the purposes of paragraph (1.1)(c). (3) Subsection (1) applies to 2022 and subsequent taxation years. (4) Subsection (2) is deemed to have come into force on April 7, 2022. 105 (1) The portion of paragraph 8301(4)(a) of the Regulations before subparagraph (i) is replaced by the following: (a) a contribution (other than an excluded contribu- tion, a contribution described in paragraph 8308(6)(e) or (g) or a contribution made under subsection 147.1(20) of the Act) made under the provision in the year by (2) Subsection (1) is deemed to have come into force on January 1, 2021. 106 (1) Subsection 8304.1(1) of the Regulations is replaced by the following: 8304.1 (1) For the purpose of subsection 248(1) of the Act, an individual’s total pension adjustment reversal for a calendar year is the total of all amounts each of which is (a) the pension adjustment reversal (in this Part and Part LXXXIV referred to as “PAR”) determined in connection with the individual’s termination in the year from a deferred profit sharing plan or from a ben- efit provision of a registered pension plan; or (b) the pension adjustment correction determined in respect of the individual for the year under subsection (16). (2) Section 8304.1 of the Regulations is amended by adding the following after subsection (15): Pension Adjustment Correction (16) If a distribution described in subparagraph 8502(d)(iii) or subsection 147.1(19) of the Act is made in a calendar year in respect of an individual under a money 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Regulations Sections 104-106 Page 117 purchase provision, the individual’s pension adjustment correction for the year is the total of all amounts each of which is an amount, in respect of one or more of the 10 years immediately preceding the calendar year (each such year referred to in this subsection as a “retroactive year”), determined by the formula A − B − C where A is the total of all amounts each of which was included in determining the individual’s pension credit with respect to an employer for the retroactive year under the provision; B is the total amount that ought to have been con- tributed to the provision under the terms of the plan as registered with respect to the individual for the retroactive year; and C is the amount, if any, by which the total of all amounts each of which is the individual’s pension adjustment for the retroactive year in respect of a participating employer exceeds the lesser of the money purchase limit for the retroactive year and 18% of the individual’s compensation (as defined in subsection 147.1(1) of the Act) from participating employers for the retroactive year. (3) Subsections (1) and (2) are deemed to have come into force on January 1, 2021. 107 (1) Section 8308 of the Regulations is amend- ed by adding the following after subsection (5.3): Conditions – Permitted Corrective Contribution (5.4) If the individual makes a written commitment to the administrator of the plan or to an employer who par- ticipates in the plan to make a permitted corrective con- tribution in accordance with subsection 147.1(20) of the Act in installments, amounts payable by the individual or the employer in respect of the contribution are deemed for the purposes of subsection 8402(4) and the definition net past service pension adjustment in subsection 146(1) of the Act to have been made at the time when the written commitment was made. (2) Subsection (1) is deemed to have come into force on January 1, 2021. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Regulations Sections 106-107 Page 118 108 (1) Section 8402 of the Regulations is amend- ed by adding the following after subsection (3): (4) The administrator of a registered pension plan shall file with the Minister an information return in prescribed form within 120 days after a contribution is made to the plan in respect of an individual under subsection 147.1(20) of the Act. (2) Subsection (1) is deemed to have come into force on January 1, 2021. However, in its applica- tion to a contribution made before this Act re- ceives royal assent, the administrator of the reg- istered pension plan shall not be required to file the prescribed information return prior to the day that is 60 days after the day on which this Act receives royal assent. 109 (1) Section 8402.01 of the Regulations is amended by adding the following after subsec- tion (4): Pension Adjustment Correction – Employer Reporting (4.1) If a pension adjustment correction under subsec- tion 8304.1(16) is determined for an individual in connec- tion with a distribution from a registered pension plan (other than a pension adjustment correction that is nil), the administrator of the plan shall file with the Minister an information return in prescribed form reporting the pension adjustment correction (a) if the distribution occurs in the first, second or third quarter of a calendar year, on or before the day that is 60 days after the last day of the quarter in which the distribution occurs; and (b) if the distribution occurs in the fourth quarter of a calendar year, before February of the following calen- dar year. (2) Subsection (1) is deemed to have come into force on January 1, 2021. However, in its applica- tion to a distribution that is made before this Act receives royal assent, the administrator of the registered pension plan is not required to file the prescribed information return prior to the day that is 60 days after the day on which this Act re- ceives royal assent. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Regulations Sections 108-109 Page 119 110 (1) Subparagraph 8502(d)(v) of the Regula- tions is replaced by the following: (v) a payment of interest (computed at a rate not exceeding a reasonable rate) in respect of contribu- tions that are returned as described in subpara- graph (iii) or (iv), (2) The portion of paragraph 8502(i) of the Regu- lations before subparagraph (i) is replaced by the following: (i) subject to paragraph (i.2), a trustee or other person who holds property in connection with the plan does not borrow money for the purposes of the plan, except where (3) Section 8502 of the Regulations is amended by adding the following after paragraph (i.1): Borrowing – Defined Benefit Provision (i.2) in the case of a defined benefit provision of the plan (other than an individual pension plan), a trustee or other person who holds property in connection with the provision does not borrow money for the purposes of the provision, except in the circumstances described in paragraph (i) or if, at the time an amount is bor- rowed (i) the difference between A and B in subparagraph (ii) does not exceed 125% of the actuarial liabilities (determined on the effective date of the plan’s most recent actuarial report) in respect of the provision, and (ii) the total of the borrowed amount and the amount of any other outstanding borrowings in re- spect of the provision (other than an amount de- scribed in paragraph (i)) does not exceed the amount determined by the formula 0.20 × (A − B) where A is the value of the plan assets in respect of the provision on the first day of the fiscal period of the plan in which the amount is borrowed, and B is the amount of outstanding borrowings in re- spect of the provision, determined on the first day of the fiscal period in which the amount is borrowed; 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Regulations Section 110 Page 120 (4) Subsection (1) is deemed to have come into force on January 1, 2021. (5) Subsections (2) and (3) are deemed to have come into force on April 7, 2022. 111 (1) Clause 8506(1)(e.2)(iii)(A) of the Regula- tions is replaced by the following: (A) a benefit described in any of paragraphs (b) to (e) and (i), (2) Subsection (1) is deemed to have come into force on January 1, 2020. SOR/2010-150 Electronic Filing and Provision of Information (GST/HST) Regulations 112 (1) Paragraph 2(a) of the Electronic Filing and Provision of Information (GST/HST) Regu- lations is replaced by the following: (a) the person is not a charity; (2) Subsection (1) applies in respect of reporting periods that begin after 2023. Coordinating Amendments Bill C-46 113 (1) Subsections (2) to (4) apply if Bill C-46, in- troduced in the 1st session of the 44th Parliament and entitled the Cost of Living Relief Act, No. 3 (in this section referred to as the “other Act”), re- ceives royal assent. (2) If section 29 and subsections 49(1) and (2) of this Act come into force before section 3 and sub- sections 4(1) and (2) of the other Act, then that section 3 and those subsections 4(1) and (2) are deemed never to have come into force and are re- pealed. (3) If section 3 and subsections 4(1) and (2) of the other Act come into force on the same day as sec- tion 29 and subsections 49(1) and (2) of this Act, then that section 3 is deemed never to have come into force and is repealed and those subsections 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Income Tax Regulations Sections 110-113 Page 121 4(1) and (2) are deemed to have come into force before those subsections 49(1) and (2). (4) If section 3 of the other Act comes into force before section 29 of this Act, then that section 29 is deemed never to have come into force and is repealed. PART 2 GST/HST Measures R.S., c. E-15 Excise Tax Act 114 (1) The definition commercial service in sub- section 123(1) of the Excise Tax Act is amended by striking out “and” at the end of paragraph (a), by adding “and” at the end of paragraph (b) and by adding the following after paragraph (b): (c) a service that is acquired for consumption, use or supply in the course of, or in connection with, the per- formance of a mining activity (as defined in subsec- tion 188.2(1)) in Canada; (service commercial) (2) The definition financial service in subsection 123(1) of the Act is amended by adding the follow- ing after paragraph (r.5): (r.6) a service (other than a prescribed service) that is supplied by a payment card network operator in re- spect of a payment card network (as those terms are defined in section 3 of the Payment Card Networks Act) where the supply includes the provision of (i) a service in respect of the authorization of a transaction in respect of money, an account, a cred- it card voucher, a charge card voucher or a financial instrument, (ii) a clearing or settlement service in respect of money, an account, a credit card voucher, a charge card voucher or a financial instrument, or (iii) a service rendered in conjunction with a ser- vice referred to in subparagraph (i) or (ii), 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 1 Amendments to the Income Tax Act and Other Legislation Coordinating Amendments Sections 113-114 Page 122 (3) Paragraph (b) of the definition pension entity in subsection 123(1) of the Act is replaced by the following: (b) a corporation referred to in paragraph (b) of the definition pension plan, or (4) Subsection (1) is deemed to have come into force on February 5, 2022. (5) Subsection (2) applies to a service rendered under an agreement for a supply if (a) any consideration for the supply becomes due after March 28, 2023 or is paid after that day without having become due; or (b) all of the consideration for the supply be- came due or was paid on or before March 28, 2023, except that, for the purposes of Part IX of the Act, other than Division IV of that Part, subsection (2) does not apply in respect of the service if (i) the supplier did not, on or before March 28, 2023, charge, collect or remit any amount as or on account of tax under Part IX of the Act in respect of the supply, and (ii) the supplier did not, on or before March 28, 2023, charge, collect or remit any amount as or on account of tax under Part IX of the Act in respect of any other supply that is made under the agreement and that in- cludes the provision of a service referred to in paragraph (r.6) of the definition financial service in subsection 123(1) of the Act, as amended by subsection (2). (6) Despite section 298 of the Act, the Minister of National Revenue may assess, reassess or make an additional assessment of any amount in re- spect of paragraph (r.6) of the definition financial service in subsection 123(1) of the Act, as amend- ed by subsection (1), at any time on or before the later of the day that is one year after the day on which the legislation enacting subsection (1) re- ceives royal assent and the last day of the period otherwise allowed under that section for making the assessment, reassessment or additional as- sessment. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 2 GST/HST Measures Excise Tax Act Section 114 Page 123 115 (1) Section 172.1 of the Act is amended by adding the following after subsection (8): Later addition to net tax of employer (8.01) If, in making an assessment of the net tax for a re- porting period of a person, the Minister determines that the tax in respect of a supply of all or part of a specified resource deemed to have been made by the person under paragraph (5)(a) or (5.1)(a) or in respect of a supply of an employer resource deemed to have been made by the person under any of paragraphs (6)(a), (6.1)(a), (7)(a) and (7.1)(a) is greater than the amount of tax that had been accounted for in respect of the supply prior to the Minister’s assessment of the net tax for the reporting pe- riod and if the person has paid or remitted all amounts owing to the Receiver General in respect of the net tax for the reporting period, if any, the following rules apply: (a) the person shall, in prescribed form and in a man- ner satisfactory to the Minister, provide prescribed in- formation in respect of the supply to each pension en- tity that is deemed to have paid tax in respect of the specified resource or part or in respect of the employer resource, as the case may be, under whichever of para- graphs (5)(d), (5.1)(d), (6)(d), (6.1)(d), (7)(d) and (7.1)(d) is applicable (in this subsection referred to as the “applicable paragraph”) before the day that is one year after the later of (i) the day on which the Minister sends the notice of the assessment, and (ii) the first day on which all amounts owing to the Receiver General in respect of the net tax for the re- porting period, if any, have been paid or remitted; and (b) if the person provides the prescribed information to a particular pension entity in accordance with para- graph (a) and if the prescribed information is received by the particular pension entity on a particular day that is after the end of the last claim period (as de- fined in subsection 259(1)) of the particular pension entity that ends within two years after the day on which the supply was deemed to have been made, for the purposes referred to in the applicable paragraph, (i) the particular pension entity is deemed to have paid on the particular day tax equal to the amount determined by the formula A × (B ÷ C) where A is the amount of tax in respect of the specified resource or part or in respect of the employer 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 2 GST/HST Measures Excise Tax Act Section 115 Page 124 resource, as the case may be, that the particular pension entity is deemed to have paid under the applicable paragraph, B is the difference between the tax in respect of the supply and the amount of tax that had been accounted for in respect of the supply prior to the Minister’s assessment of the net tax for the reporting period, and C is the tax in respect of the supply, and (ii) if the applicable paragraph is paragraph (5)(d), (5.1)(d), (6)(d) or (6.1)(d), the tax that the particu- lar pension entity is deemed to have paid under subparagraph (i) is deemed to be paid in respect of the supply of the specified resource or part or in re- spect of the supply of the employer resource, as the case may be, that the particular pension entity is deemed to have received under the applicable para- graph. (2) Subsection (1) applies in respect of any notice of assessment, reassessment or additional as- sessment sent to a person by the Minister of Na- tional Revenue except that, in respect of a notice of assessment, reassessment or additional as- sessment sent by the Minister of National Rev- enue on or before August 9, 2022, paragraph 172.1(8.01)(a) of the Act, as enacted by subsection (1), is to be read as follows: (a) the person may, in prescribed form and in a man- ner satisfactory to the Minister, provide prescribed in- formation in respect of the supply to each pension en- tity that is deemed to have paid tax in respect of the specified resource or part or in respect of the employer resource, as the case may be, under whichever of para- graphs (5)(d), (5.1)(d), (6)(d), (6.1)(d), (7)(d) and (7.1)(d) is applicable (in this subsection referred to as the “applicable paragraph”) before the day that is one year after the later of (i) the day on which the Act of Parliament that im- plements this subsection receives royal assent, and (ii) the first day on which all amounts owing to the Receiver General in respect of the net tax for the re- porting period, if any, have been paid or remitted; and 116 (1) The Act is amended by adding the follow- ing after section 172.1: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 2 GST/HST Measures Excise Tax Act Sections 115-116 Page 125 Pension entity — assessment of supplier 172.11 For the purposes of sections 225.2, 232.01, 232.02 and 261.01 and the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations, tax in re- spect of a supply of property or a service that became payable by a pension entity of a pension plan on a partic- ular day is deemed to have become payable by the pen- sion entity on the day on which the pension entity pays that tax and not to have become payable on the particular day if (a) the supplier did not, before the end of the last claim period (as defined in subsection 259(1)) of the pension entity that ends within two years after the end of the claim period of the pension entity that includes the particular day, charge that tax; (b) the supplier discloses in writing to the pension en- tity that the Minister has assessed the supplier for that tax; (c) the pension entity pays that tax after the end of that last claim period; and (d) that tax is not included in determining (i) a rebate under subsection 261.01(2) that is claimed by the pension entity for that last claim pe- riod or an earlier claim period of the pension entity, or (ii) an amount that a qualifying employer (as de- fined in subsection 261.01(1)) of the pension plan deducts in determining its net tax for a reporting period as a result of a joint election made under any of subsections 261.01(5), (6) and (9) with the pen- sion entity for that last claim period or an earlier claim period of the pension entity. (2) Subsection (1) applies in respect of tax that is paid by a pension entity in a claim period of the pension entity that ends after August 9, 2022. 117 (1) Section 172.2 of the Act is amended by adding the following after subsection (3): Assessment of supplier (3.1) For the purposes of subsection (3), tax in respect of a supply of property or a service that became payable by a master pension entity on a particular day is deemed to have become payable by the master pension entity on the 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 2 GST/HST Measures Excise Tax Act Sections 116-117 Page 126 day on which the master pension entity pays that tax and not to have become payable on the particular day if (a) the supplier did not, within two years after the particular day, charge that tax; (b) the supplier discloses in writing to the master pen- sion entity that the Minister has assessed the supplier for that tax; and (c) the master pension entity pays that tax on a day that is more than two years after the particular day. (2) Subsection (1) applies in respect of tax that is paid by a master pension entity after August 9, 2022. 118 (1) The Act is amended by adding the follow- ing after section 188.1: Cryptoassets Definitions 188.2 (1) The following definitions apply in this section. cryptoasset means property (other than prescribed property) that is a digital representation of value and that only exists at a digital address of a publicly distributed ledger. (cryptoactif) mining activity means an activity of (a) validating transactions in respect of a cryptoasset and adding them to a publicly distributed ledger on which the cryptoasset exists at a digital address; (b) maintaining and permitting access to a publicly distributed ledger on which a cryptoasset exists at a digital address; or (c) allowing computing resources to be used for the purpose of, or in connection with, performing activi- ties described in paragraph (a) or (b) in respect of a cryptoasset. (activité de minage) mining group means a group of persons that, under an agreement, (a) pool property or services for the performance of mining activities; and (b) share mining payments in respect of the mining activities among members of the group. (groupe de minage) mining group operator, in respect of a mining group, means a person that coordinates, oversees or manages 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 2 GST/HST Measures Excise Tax Act Sections 117-118 Page 127 the mining activities of the mining group. (exploitant d’un groupe de minage) mining payment, in respect of a mining activity, means money, property or a service that is a fee, reward or other form of payment and that is received or generated as a consequence of the mining activity being performed. (paiement de minage) Acquisition, etc., for mining activities (2) For the purposes of this Part, to the extent that a per- son acquires, imports or brings into a participating province property or a service for consumption, use or supply in the course of, or in connection with, mining ac- tivities, the person is deemed to have acquired, imported or brought into the participating province, as the case may be, the property or service for consumption, use or supply otherwise than in the course of commercial activi- ties of the person. Use, etc., for mining activities (3) For the purposes of this Part, if a person consumes, uses or supplies property or a service in the course of, or in connection with, mining activities, that consumption, use or supply is deemed to be otherwise than in the course of commercial activities of the person. Mining payment (4) For the purposes of this Part, if a person receives a mining payment in respect of a mining activity, (a) the provision of the mining activity is deemed not to be a supply; (b) the provision of the mining payment is deemed not to be a supply; and (c) in determining an input tax credit of another per- son that provides the mining payment, no amount is to be included in respect of tax that becomes payable, or is paid without having become payable, by the other person in respect of any property or service acquired, imported or brought into a participating province for consumption, use or supply in the course of, or in con- nection with, the provision of the mining payment by the other person. Exception (5) Subsections (2) to (4) do not apply in respect of a mining activity to the extent that the mining activity is performed by a particular person for another person if 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 2 GST/HST Measures Excise Tax Act Section 118 Page 128 (a) the identity of the other person is known to the particular person; (b) where the mining activity is in respect of a mining group that includes the particular person, the other person is not a mining group operator in respect of the mining group; and (c) where the other person is a non-resident person and is not dealing at arm’s length with the particular person, each property or service — being property or a service that is received by the other person from the particular person as a consequence of the performance of the mining activity — is supplied, or is used or con- sumed in the course of making a supply, by the other person to one or more persons each of which (i) is a person whose identity is known to the other person, (ii) deals at arm’s length with the other person, and (iii) is not a mining group operator in respect of a mining group that includes the other person if the mining activity is in respect of that mining group. (2) Subsection (1) is deemed to have come into force on February 5, 2022 except that, in deter- mining an input tax credit of a person, paragraph 188.2(4)(c) of the Act, as enacted by subsection (1), does not apply in respect of property or a ser- vice acquired, imported or brought into a partici- pating province before February 6, 2022. 119 (1) The portion of subsection 232.01(5) of the Act before paragraph (a) is replaced by the fol- lowing: Effect of tax adjustment note (5) If a person issues a tax adjustment note to a pension entity under subsection (3) in respect of all or part of a specified resource, a supply of the specified resource or part is deemed to have been received by the pension enti- ty under subparagraph 172.1(5)(d)(i) or (5.1)(d)(i) and tax (in this subsection referred to as “deemed tax”) in re- spect of that supply is deemed to have been paid on a particular day under subparagraph 172.1(5)(d)(ii) or (5.1)(d)(ii) or paragraph 172.1(8.01)(b) by the pension en- tity, the following rules apply: (2) Subsection (1) is deemed to have come into force on August 10, 2022. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 2 GST/HST Measures Excise Tax Act Sections 118-119 Page 129 120 (1) The portion of subsection 232.02(4) of the Act before paragraph (a) is replaced by the fol- lowing: Effect of tax adjustment note (4) If a person issues a tax adjustment note to a pension entity under subsection (2) in respect of particular em- ployer resources consumed or used for the purpose of making an actual pension supply, a supply of each of those particular employer resources (each of which in this subsection is referred to as a “particular supply”) is deemed to have been received by the pension entity un- der subparagraph 172.1(6)(d)(i) or (6.1)(d)(i) and tax (in this subsection referred to as “deemed tax”) in respect of each of the particular supplies is deemed to have been paid under subparagraph 172.1(6)(d)(ii) or (6.1)(d)(ii) or paragraph 172.1(8.01)(b) by the pension entity, the fol- lowing rules apply: (2) Subsection (1) is deemed to have come into force on August 10, 2022. 121 (1) Subparagraph (i) of the description of H in the definition pension rebate amount in subsec- tion 261.01(1) of the Act is replaced by the follow- ing: (i) if an application for a rebate under subsection (2) for the claim period is filed in accordance with subsection (3), the total of (A) the total amount indicated on the applica- tion under subsection (3.1), and (B) the total of all amounts, each of which is an eligible amount of the pension entity for the claim period that is described in paragraph (b) of the definition eligible amount and in respect of which a portion of the rebate is claimed by the pension entity in accordance with paragraph (3.2)(a), (2) The portion of subsection 261.01(3.1) of the Act before paragraph (a) is replaced by the follow- ing: Application for rebate — pension rebate amount election (3.1) An application for a rebate under subsection (2) for a claim period of a pension entity shall indicate the total of all amounts, each of which is an eligible amount of the pension entity for the claim period (other than an eligible amount in respect of which a portion of the rebate is claimed by the pension entity in accordance with para- graph (3.2)(a)) 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 2 GST/HST Measures Excise Tax Act Sections 120-121 Page 130 (3) Section 261.01 of the Act is amended by adding the following after subsection (3.1): Separate claims for a claim period (3.2) If an eligible amount of a pension entity for a claim period of the pension entity is an amount of tax that is deemed to have been paid under subparagraph 172.1(8.01)(b)(i), or to have become payable under sec- tion 172.11, the following rules apply: (a) the portion of the rebate under subsection (2) for the claim period that is in respect of the excess pen- sion rebate amount for the claim period in respect of the eligible amount may, despite subsection (4), be claimed in an application separate from the pension entity’s application for the portion of that rebate that is in respect of the remaining pension rebate amount for the claim period provided that the application for the portion of that rebate that is in respect of that ex- cess pension rebate amount is filed by the pension en- tity after the beginning of the pension entity’s fiscal year that includes the claim period and not later than (i) if the pension entity is a registrant, the day on or before which the pension entity is required to file the return under Division V for the claim period, or (ii) in any other case, the last day of the claim peri- od; and (b) a particular election under subsection (5) or (6) for the claim period that is in respect of the excess pen- sion rebate amount for the claim period in respect of the eligible amount may be made separately from an election under subsection (5) or (6), as the case may be, that is in respect of the remaining pension rebate amount for the claim period provided that the portion of the rebate under subsection (2) for the claim period that is in respect of that excess pension rebate amount is claimed by the pension entity in a separate applica- tion that is filed in accordance with paragraph (a) and the particular election is filed at the same time that the application is filed. Definitions (3.3) The following definitions apply in this subsection and subsection (3.2). excess pension rebate amount for a claim period of a pension entity means, in respect of an amount of tax deemed to have been paid under subparagraph 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 2 GST/HST Measures Excise Tax Act Section 121 Page 131 172.1(8.01)(b)(i), or to have become payable under sec- tion 172.11, by the pension entity during the claim peri- od, the amount that would be the pension rebate amount of the pension entity for the claim period if the amount of tax were the only eligible amount of the pension entity for the claim period. (excédent du montant de rem- boursement de pension) remaining pension rebate amount for a claim period of a pension entity means the amount determined by the formula A − B where A is the pension rebate amount of the pension entity for the claim period; and B is the total of all amounts, each of which is an excess pension rebate amount for the claim period in re- spect of which a portion of the rebate under subsec- tion (2) for the claim period is claimed by the pen- sion entity in accordance with paragraph (3.2)(a). (solde du montant de remboursement de pen- sion) (4) Subsections (1) to (3) are deemed to have come into force on August 10, 2022. 122 (1) Subsection 1(1) of Part VII of Schedule VI to the Act is amended by adding the following in alphabetical order: tangible personal property includes money; (2) Subsection (1) is deemed to have come into force on August 10, 2022. It also applies in respect of a supply made before that date unless the sup- plier charged or collected, before that date, any amount as or on account of tax under Part IX of the Act in respect of the supply. SOR/2001-171 Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations 123 (1) Clauses (iii)(C) and (D) of the description of G3 in paragraph 46(a) of the Selected Listed Fi- nancial Institutions Attribution Method (GST/ HST) Regulations are replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 2 GST/HST Measures Excise Tax Act Sections 121-123 Page 132 (C) if a tax adjustment note is issued to the financial institution under subsection 232.01(3) of the Act in respect of all or part of a specified resource, if a supply of the specified resource or part is deemed for the purposes of section 232.01 of the Act to have been received by the financial institu- tion under subparagraph 172.1(5)(d)(i) or (5.1)(d)(i) of the Act and if tax in respect of the supply is deemed for the purposes of section 232.01 of the Act to have been paid on a particular day under subparagraph 172.1(5)(d)(ii) or (5.1)(d)(ii) or paragraph 172.1(8.01)(b) of the Act by the financial in- stitution, an amount that the financial in- stitution would be required by paragraph 232.01(5)(c) of the Act to pay during the particular reporting period to the Receiver General as a result of the issuance of the tax adjustment note if the financial institu- tion were a selected listed financial institu- tion on the particular day, or (D) if a tax adjustment note is issued to the financial institution under subsection 232.02(2) of the Act in respect of employer resources, if particular supplies (as re- ferred to in subsection 232.02(4) of the Act) of those employer resources are deemed for the purposes of section 232.02 of the Act to have been received by the financial insti- tution under subparagraph 172.1(6)(d)(i) or (6.1)(d)(i) of the Act and if tax in respect of each of the particular supplies is deemed for the purposes of section 232.02 of the Act to have been paid under subparagraph 172.1(6)(d)(ii) or (6.1)(d)(ii) or paragraph 172.1(8.01)(b) of the Act by the financial in- stitution, an amount that the financial in- stitution would be required by paragraph 232.02(4)(c) of the Act to pay during the particular reporting period to the Receiver General as a result of the issuance of the tax adjustment note if the financial institu- tion were a selected listed financial institu- tion on the first day on which an amount of tax is deemed for the purposes of section 232.02 of the Act to have been paid in re- spect of the particular supplies, (2) Subsection (1) applies in respect of any re- porting period of a person that ends after August 9, 2022. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 2 GST/HST Measures Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations Section 123 Page 133 PART 3 Amendments to the Excise Act, the Excise Act, 2001 and the Air Travellers Security Charge Act DIVISION 1 Excise Act and Excise Act, 2001 (Alcohol Products) R.S., c. E-14 Excise Act 124 (1) Section 170.2 of the Excise Act is amended by adding the following after subsection (2): Adjustment — 2023 (2.1) In respect of the inflationary adjusted year that is 2023, the description of B in paragraph (2)(a) is deemed to be equal to 1.02. (2) Subsection (1) is deemed to have come into force on April 1, 2023. 2002, c. 22 Excise Act, 2001 125 (1) Section 123.1 of the Excise Act, 2001 is amended by adding the following after subsec- tion (2): Adjustment — 2023 (2.1) In respect of the inflationary adjusted year that is 2023, the description of B in paragraph (2)(a) is deemed to be equal to 1.02. (2) Subsection (1) is deemed to have come into force on April 1, 2023. 126 (1) Section 135.1 of the Act is amended by adding the following after subsection (2): 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 3 Amendments to the Excise Act, the Excise Act, 2001 and the Air Travellers Security Charge Act Sections 124-126 Page 134 Adjustment — 2023 (2.1) In respect of the inflationary adjusted year that is 2023, the description of B in paragraph (2)(a) is deemed to be equal to 1.02. (2) Subsection (1) is deemed to have come into force on April 1, 2023. DIVISION 2 Air Travellers Security Charge Act (Charge Rates) 2002, c. 9, s. 5 Air Travellers Security Charge Act 127 (1) The portion of paragraph 12(1)(a) of the Air Travellers Security Charge Act before sub- paragraph (i) is replaced by the following: (a) $9.46 for each chargeable emplanement included in the service, to a maximum of $18.92, if (2) The portion of paragraph 12(1)(b) of the Act before subparagraph (i) is replaced by the fol- lowing: (b) $9.94 for each chargeable emplanement included in the service, to a maximum of $19.87, if (3) The portion of paragraph 12(1)(c) of the Act before subparagraph (i) is replaced by the fol- lowing: (c) $16.08 for each chargeable emplanement included in the service, to a maximum of $32.16, if (4) The portion of paragraph 12(1)(d) of the Act before subparagraph (i) is replaced by the fol- lowing: (d) $16.89 for each chargeable emplanement included in the service, to a maximum of $33.77, if (5) Paragraph 12(1)(e) of the Act is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 3 Amendments to the Excise Act, the Excise Act, 2001 and the Air Travellers Security Charge Act DIVISION 1 Excise Act and Excise Act, 2001 (Alcohol Products) Excise Act, 2001 Sections 126-127 Page 135 (e) $34.42, if the service includes transportation to a destination outside the continental zone. (6) The portion of paragraph 12(2)(a) of the Act before subparagraph (i) is replaced by the fol- lowing: (a) $16.08 for each chargeable emplanement by an in- dividual on an aircraft used to transport the individual to a destination outside Canada but within the conti- nental zone, to a maximum of $32.16, if (7) The portion of paragraph 12(2)(b) of the Act before subparagraph (i) is replaced by the fol- lowing: (b) $16.89 for each chargeable emplanement by an in- dividual on an aircraft used to transport the individual to a destination outside Canada but within the conti- nental zone, to a maximum of $33.77, if (8) Paragraph 12(2)(c) of the Act is replaced by the following: (c) $34.42, if the service includes transportation to a destination outside the continental zone. (9) Subsections (1) to (8) apply in respect of an air transportation service that includes a charge- able emplanement after April 2024 unless (a) if any consideration is paid or payable in respect of the service, all of the consideration is paid before May 2024; or (b) if no consideration is paid or payable in re- spect of the service, a ticket is issued before May 2024. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 3 Amendments to the Excise Act, the Excise Act, 2001 and the Air Travellers Security Charge Act DIVISION 2 Air Travellers Security Charge Act (Charge Rates) Air Travellers Security Charge Act Section 127 Page 136 PART 4 Various Measures DIVISION 1 1991, c. 46 Bank Act Amendments to the Act 128 The definition external complaints body in section 2 of the Bank Act is replaced by the fol- lowing: external complaints body means the body corporate designated under subsection 627.48(1); (organisme ex- terne de traitement des plaintes) 129 Section 627.48 of the Act is replaced by the following: External Complaints Body Purpose 627.471 The purpose of sections 627.48 to 627.54 is to enhance the process for dealing with complaints by es- tablishing a regime comprised of a sole external com- plaints body that discharges its functions and performs its activities in a transparent, effective, timely and fair manner based on the principles of accessibility, account- ability, impartiality and independence. Designation of body corporate 627.48 (1) The Minister may, on the recommendation of the Commissioner, designate a body corporate incor- porated under the Canada Not-for-profit Corporations Act or under a provincial statute equivalent to that Act to be the external complaints body to deal with complaints referred to in paragraph 627.43(1)(a) that have not been resolved by its member institutions to the satisfaction of the persons who made the complaints or that have not been dealt with within the prescribed period referred to in that paragraph. Matters for consideration (2) Before designating a body corporate, the Minister shall take into account all matters that the Minister con- siders relevant, including whether the body corporate has 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures Sections 128-129 Page 137 (a) the reputation required under paragraph 627.49(a); and (b) policies and procedures and terms of reference that would enable it to discharge its functions and per- form its activities in a manner that is consistent with the purpose set out in section 627.471 and to comply with paragraphs 627.49(b) to (m). Obligation to be member (3) Every institution shall be a member of the external complaints body. Not an agent (4) The external complaints body is not an agent of His Majesty. Designation to be published (5) A designation made under subsection (1) shall be published in the Canada Gazette. 130 (1) The portion of section 627.49 of the Act be- fore paragraph (a) is replaced by the following: Requirements 627.49 The external complaints body shall (2) Paragraphs 627.49(b) to (d) of the Act are re- placed by the following: (b) make its services available across Canada in both official languages and offer those services free of charge to persons who make complaints to it; (c) establish policies, procedures and terms of refer- ence that are satisfactory to the Commissioner per- taining to, among other things, dealing with com- plaints and the consultation, at least once a year, of its member institutions and consumers for the purpose of raising concerns about the external complaints body; (c.1) establish the manner of calculating, to the satis- faction of the Commissioner, the fees it charges to each of its member institutions for its services; (c.2) make information available to consumers about their rights and responsibilities in relation to the ex- ternal complaints handling regime, respond to their inquiries and requests for information and offer them assistance in making a complaint; 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 1 Bank Act Amendments to the Act Sections 129-130 Page 138 (d) inform the Commissioner in writing within 30 days after the day on which it determines that a com- plaint raises a potential systemic issue; (3) Paragraph 627.49(e) of the French version of the Act is replaced by the following: e) dans les trente jours qui suivent la date à laquelle il reçoit une plainte, aviser l’auteur de la plainte lorsque, selon lui, la plainte, ou toute partie de celle-ci, ne re- lève pas de son mandat, lui en fournir par écrit les rai- sons pour lesquelles elle n’en relève pas et lui fournir le nom de toute entité à qui il peut présenter la plainte; (4) Paragraph 627.49(g) of the Act is replaced by the following: (g) impartially deal with complaints referred to in paragraph 627.43(1)(a) that have not been resolved by its member institutions to the satisfaction of the per- sons who made the complaints or that have not been dealt with within the prescribed period referred to in that paragraph; (5) Paragraph 627.49(h) of the French version of the Act is replaced by the following: h) au plus tard cent vingt jours après la date à laquelle il dispose de l’ensemble des renseignements néces- saires à l’examen de la plainte, présenter par écrit aux parties à la plainte une recommandation finale; (6) Section 627.49 of the Act is amended by adding the following after paragraph (h): (h.1) without delay, inform the Commissioner in writ- ing of cases in which an institution does not comply with a final recommendation; (7) The portion of paragraph 627.49(i) of the French version of the Act before subparagraph (i) is replaced by the following: i) dans les quatre-vingt-dix jours suivant la date à la- quelle il présente une recommandation finale, rendre accessible sans frais sur son site Web un résumé de la décision, lequel comprend notamment : (8) Section 627.49 of the Act is amended by adding the following after paragraph (i): (i.1) within 60 days after the end of each quarter, sub- mit to the Commissioner, in a form satisfactory to the Commissioner, 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 1 Bank Act Amendments to the Act Section 130 Page 139 (i) in relation to all investigations completed during the quarter, a copy of the record of the complaint, and (ii) any prescribed information; (i.2) within 60 days after the end of each quarter, meet with the Commissioner to discuss, among other things, complaints, operations and market trends and issues with the potential to impact consumers; (9) The portion of paragraph 627.49(j) of the Act before subparagraph (i) is replaced by the fol- lowing: (j) within 135 days after the end of each financial year, file a written report with the Commissioner on the performance of its functions and activities for that year, which report is to include (10) Clause 627.49(j)(i)(B) of the Act is replaced by the following: (B) all sources of funding for its functions and activities, including the fees charged to each of its member institutions for its services and the manner in which those fees are calculated, and (11) Subparagraph 627.49(j)(iii) of the French ver- sion of the Act is replaced by the following: (iii) pour chacune de ses institutions membres, le nombre et la nature des plaintes reçues ainsi que le nombre de plaintes qui, selon lui, relevaient de son mandat, le nombre de recommandations finales présentées aux parties et le nombre de plaintes qui, selon lui, ont été réglées à la satisfaction de leurs auteurs, (12) Subparagraph 627.49(j)(v) of the French ver- sion of the Act is replaced by the following: (v) le nombre de plaintes reçues qui, selon lui, ne relevaient pas de son mandat et les raisons pour lesquelles elles n’en relevaient pas, (13) Paragraph 627.49(j) of the Act is amended by adding the following after subparagraph (v): (v.1) the number of complaints for which an insti- tution did not comply with a final recommendation, (14) Subparagraph 627.49(j)(vii) of the French version of the Act is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 1 Bank Act Amendments to the Act Section 130 Page 140 (vii) la compensation moyenne et la compensation totale qui a été accordée relativement aux plaintes reçues qui, selon lui, relevaient de son mandat; (15) Section 627.49 of the Act is amended by adding the following after paragraph (j): (j.1) meet with the Commissioner annually; (16) Paragraphs 627.49(l) and (m) of the Act are replaced by the following: (l) submit, every five years, to an evaluation of the performance of its functions and activities that is con- ducted, at the discretion of the Commissioner, by the Commissioner or a third party in accordance with terms of reference that are established by the external complaints body in consultation with the Commis- sioner; and (m) meet any prescribed requirement. 131 Sections 627.5 to 627.52 of the Act are replaced by the following: Provision of information — external complaints body 627.52 An institution shall provide the external com- plaints body with all information in its possession or con- trol that relates to a complaint in respect of the institu- tion without delay after the external complaints body no- tifies it that the complaint has been received. 132 Paragraph 627.65(b) of the Act is replaced by the following: (b) the name of the external complaints body and the manner in which that body may be contacted; and 133 Subsection 627.998 of the Act is amended by adding “and” at the end of paragraph (n) and by replacing paragraphs (o) and (p) with the follow- ing: (o) respecting the requirements to be met by the ex- ternal complaints body. 134 Subsections 659(1.1) to (1.3) of the Act are re- placed by the following: Special audit (1.1) The Commissioner may direct that a special audit be made in accordance with any terms and conditions that he or she considers appropriate if, in the opinion of the Commissioner, it is required for the purposes of the 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 1 Bank Act Amendments to the Act Sections 130-134 Page 141 administration of the Financial Consumer Agency of Canada Act and the consumer provisions, and may ap- point for that purpose (a) with respect to a bank or an authorized foreign bank, a firm of accountants qualified under subsection 315(1); and (b) with respect to the external complaints body, a firm of accountants, as defined in section 313. Report to Commissioner (1.2) If a bank, an authorized foreign bank or the exter- nal complaints body is the subject of a special audit, it shall provide the Commissioner with the results of the audit. Expenses payable (1.3) The expenses incurred in respect of any special au- dit are payable by the bank, the authorized foreign bank or the external complaints body that is the subject of the audit. 135 Section 661 of the Act is replaced by the fol- lowing: Compliance agreement 661 The Commissioner may enter into an agreement, called a “compliance agreement”, with a bank, an autho- rized foreign bank or the external complaints body for the purposes of implementing any measure that is de- signed so as to further compliance by it with the con- sumer provisions. 136 Subsections 661.1(2) to (4) of the Act are re- placed by the following: Directions — external complaints body (1.1) If, in the opinion of the Commissioner, the external complaints body fails, or there are reasonable grounds to believe that it will fail, to comply with a compliance agreement or any of paragraphs 627.49(b) to (m) or to discharge its functions and perform its activities in a manner that is consistent with the purpose set out in sec- tion 627.471, the Commissioner may direct the external complaints body to comply with them or to so discharge its functions and perform its activities and to perform any act that in the opinion of the Commissioner is neces- sary to do so. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 1 Bank Act Amendments to the Act Sections 134-136 Page 142 Opportunity for representations (2) Subject to subsection (3), no direction shall be issued under subsection (1) or (1.1) unless the bank, authorized foreign bank or person or the external complaints body is provided with a reasonable opportunity to make repre- sentations in respect of the matter. Temporary direction (3) If, in the opinion of the Commissioner, the length of time required for representations to be made under sub- section (2) might be prejudicial to the public interest, the Commissioner may make a temporary direction with re- spect to the matters referred to in subsection (1) or (1.1) that has effect for a period of not more than 15 days. Continued effect (4) A temporary direction under subsection (3) continues to have effect after the end of the 15-day period referred to in that subsection if no representations are made to the Commissioner within that period or, if representa- tions have been made, the Commissioner notifies the bank, authorized foreign bank, person or external com- plaints body that the Commissioner is not satisfied that there are sufficient grounds for revoking the direction. 137 Subsection 661.2(2) of the Act is replaced by the following: Court enforcement — external complaints body (1.1) If the external complaints body contravenes or fails to comply with a compliance agreement, any of para- graphs 627.49(b) to (m) or a direction made under sub- section 661.1(1.1) or (3), the Commissioner may, in addi- tion to any other action that may be taken under this Act, apply to a court for an order requiring the external com- plaints body to comply with the compliance agreement or the direction, cease the contravention or do any thing that is required to be done, and on the application the court may so order and make any other order it thinks fit. Appeal (2) An appeal from a decision of a court under subsec- tion (1) or (1.1) lies in the same manner, and to the same court, as an appeal from any other order of the court. 138 Section 974 of the Act is replaced by the fol- lowing: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 1 Bank Act Amendments to the Act Sections 136-138 Page 143 Not statutory instruments 974 An instrument issued or made under this Act and directed to a single bank, bank holding company, autho- rized foreign bank or person, other than a regulation made under paragraph 627.998(o) or an order referred to in section 499, is not a statutory instrument for the pur- poses of the Statutory Instruments Act. Transitional Provisions Definitions 139 (1) The following definitions apply in this section. former external complaints body means an exter- nal complaints body as defined in section 2 of the Bank Act as it read before the day on which sec- tion 128 of this Act comes into force. (ancien orga- nisme externe de traitement des plaintes) new external complaints body means the body cor- porate designated under subsection 627.48(1) of the Bank Act, as amended by section 129 of this Act. (nouvel organisme externe de traitement des plaintes) Revocation of approval (2) Any approval given to a former external com- plaints body under subsection 627.48(1) of the Bank Act, as it read immediately before the day on which section 129 of this Act comes into force, is revoked on the later of the day on which the designation of the new external complaints body takes effect and the day on which the former ex- ternal complaints body resolves every complaint pending before it. Application before designation (3) On the day on which section 129 of this Act comes into force, sections 627.48 and 627.49 of the Bank Act, as they read immediately before that day, continue to apply in respect of former exter- nal complaints bodies until the day on which the designation of the new external complaints body takes effect. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 1 Bank Act Amendments to the Act Sections 138-139 Page 144 Application on designation (4) On the day on which the designation of the new external complaints body takes effect, (a) unless otherwise specified by the Commis- sioner, a former external complaints body shall continue the resolution of any complaint pending before it; (b) sections 627.48 and 627.49 of the Bank Act, as they read immediately before the day on which section 129 of this Act comes into force, contin- ue to apply for the purposes of paragraph (a); and (c) the new external complaints body shall re- solve all complaints that are not pending be- fore any former external complaints body. 2001, c. 9 Consequential Amendments to the Financial Consumer Agency of Canada Act 140 Section 2.1 of the Financial Consumer Agen- cy of Canada Act is replaced by the following: Supervision and protection 2.1 The purpose of this Act is to ensure that financial in- stitutions, the external complaints body and payment card network operators are supervised by an agency of the Government of Canada so as to contribute to the pro- tection of consumers of financial products and services and the public, including by strengthening the financial literacy of Canadians. 141 (1) The portion of paragraph 3(2)(a) of the Act before subparagraph (i) is replaced by the following: (a) supervise financial institutions and the external complaints body to determine whether they are in compliance with (2) Paragraph 3(2)(c.1) of the Act is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 1 Bank Act Transitional Provisions Sections 139-141 Page 145 (c.1) promote the adoption by the external com- plaints body of policies and procedures designed to implement the provisions, terms and conditions, un- dertakings or directions referred to in paragraph (a); (3) Paragraph 3(2)(d) of the Act is replaced by the following: (d) strengthen the financial literacy of Canadians and promote consumer awareness about the obligations of financial institutions and the external complaints body under the consumer provisions applicable to them and about all matters connected with the protection of consumers of financial products and services; and 142 Subsection 14(1) of the Act is replaced by the following: Ownership 14 (1) No Commissioner, person appointed under sub- section 4(4) or Deputy Commissioner shall hold, directly or indirectly, any interest or right in any shares of any fi- nancial institution, any bank holding company, any in- surance holding company, the external complaints body or any other body corporate, however created, carrying on any business in Canada that is substantially similar to any business carried on by any financial institution or the external complaints body. 143 Subsection 16(1) of the Act is replaced by the following: No grant or gratuity to be made 16 (1) The Commissioner, a person appointed under subsection 4(4), a Deputy Commissioner and any person appointed under section 10 shall not accept or receive, di- rectly or indirectly, any grant or gratuity from a financial institution, a bank holding company, an insurance hold- ing company or the external complaints body, or from a director, officer or employee of any of them, and a finan- cial institution, a bank holding company, an insurance holding company and the external complaints body, and any director, officer or employee of any of them, shall not make or give any such grant or gratuity. 144 Subsection 17(1) of the Act is replaced by the following: Confidential information 17 (1) Subject to subsection (2) and except as otherwise provided in this Act, information regarding the business or affairs of a financial institution or of the external com- plaints body or regarding persons dealing with a financial 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 1 Bank Act Consequential Amendments to the Financial Consumer Agency of Canada Act Sections 141-144 Page 146 institution or with the external complaints body that is obtained by the Commissioner or by any person acting under the Commissioner’s direction, in the course of the exercise or performance of powers, duties and functions referred to in subsections 5(1) and (2) and 5.1(2), and any information prepared from that information, is confiden- tial and shall be treated accordingly. 145 (1) Subsection 18(1) of the Act is replaced by the following: Commissioner to ascertain expenses 18 (1) The Commissioner shall, before December 31 in each year, ascertain the total amount of expenses in- curred during the immediately preceding fiscal year for or in connection with the administration of this Act and the consumer provisions — excluding the expenses in- curred in connection with the objects described in sub- section 3(3) — and the amounts of any prescribed cate- gories of those expenses in relation to any prescribed group of financial institutions and the external com- plaints body. (2) Subsection 18(3) of the Act is replaced by the following: Assessment (3) As soon as possible after ascertaining the amounts under subsections (1) and (1.1), the Commissioner shall assess a portion of the total amount of expenses against each financial institution and the external complaints body to the extent and in the manner that the Governor in Council may, by regulation, prescribe. (3) Subsection 18(4) of the Act is replaced by the following: Interim assessment (4) The Commissioner may, during each fiscal year, pre- pare an interim assessment against any financial institu- tion or the external complaints body. (4) Subsection 18(5) of the Act is replaced by the following: Assessment is binding (5) Every assessment and interim assessment is final and conclusive and binding on the financial institution against which it is made or the external complaints body, as the case may be. 146 Paragraph 34(a) of the Act is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 1 Bank Act Consequential Amendments to the Financial Consumer Agency of Canada Act Sections 144-146 Page 147 (a) in aggregate form, its conclusions on the compli- ance, in that year, of financial institutions and the ex- ternal complaints body with the consumer provisions applicable to them; and SOR/2021-181 Related Amendments to the Financial Consumer Protection Framework Regulations 147 (1) The portion of section 16 of the Financial Consumer Protection Framework Regulations before paragraph (a) is replaced by the follow- ing: Requirements 16 For the purposes of paragraph 627.49(m) of the Act, the following are prescribed requirements for the exter- nal complaints body: (2) Paragraphs 16(b) and (c) of the Regulations are repealed. (3) Section 16 of the Regulations is amended by adding “and” at the end of paragraph (d), by striking out “and” at the end of paragraph (e) and by repealing paragraph (f). DIVISION 2 Private Sector Pension Plans R.S., c. 32 (2nd Supp.) Pension Benefits Standards Act, 1985 148 (1) The definitions defined benefit provision, defined contribution provision and variable benefit in subsection 2(1) of the Pension Benefits Stan- dards Act, 1985 are replaced by the following: defined benefit provision means a provision of a pen- sion plan under which pension benefits for a member are determined in any way other than that described in para- graph (a) of the definition defined contribution provi- sion and that does not provide for a variable life benefit; (disposition à prestations déterminées) defined contribution provision means 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 1 Bank Act Consequential Amendments to the Financial Consumer Agency of Canada Act Sections 146-148 Page 148 (a) a provision of a pension plan under which pension benefits for a member are determined solely as a func- tion of the amount of pension benefit that can be pro- vided by (i) contributions made by and on behalf of that member, and (ii) interest earnings and other gains and losses al- located to that member, or (b) a provision of a pension plan that provides for a variable life benefit; (disposition à cotisations dé- terminées) variable benefit means a pension benefit payable in the form of a variable payment out of the pension fund, but does not include a variable life benefit; (prestation va- riable) (2) The definition cessation in subsection 2(1) of the French version of the Act is replaced by the following: cessation S’agissant d’un régime de pension, s’entend de sa cessation dans les cas visés par les paragraphes 29(1), (2), (2.1) et (4.2). (termination) (3) Paragraphs (a) and (b) of the definition for- mer member in subsection 2(1) of the Act are re- placed by the following: (a) except in sections 9.2 and 24, paragraph 28(1)(b.1) and subsection 28(2.1), a person who, on or after Jan- uary 1, 1987, has either ceased membership in the plan or retired; (b) in section 9.2, paragraph 28(1)(b.1) and subsection 28(2.1), a person who has either ceased membership in the plan or retired and has not, before the termination of the whole of the plan, (i) transferred their pension benefit credit under section 16.4, 16.91 or 26, (ii) used their pension benefit credit to purchase a life annuity under section 16.4, 16.91 or 26, or (iii) had their pension benefits transferred to an- other pension plan; or (4) Subsection 2(1) of the Act is amended by adding the following in alphabetical order: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 2 Private Sector Pension Plans Pension Benefits Standards Act, 1985 Section 148 Page 149 variable life benefit means a pension benefit whose amount varies as a function of factors that include (a) the amount or rate of return attributable to the in- vestment of the assets of the fund from which the ben- efit is paid, and (b) the rate of mortality of the pool of persons who are entitled to receive a benefit from that fund; (presta- tion viagère variable) 149 Section 10.1 of the Act is amended by adding the following after subsection (2): Non-application — variable life benefit (3) Subsection (2) does not apply with respect to an amendment to reduce, as permitted or required under the regulations, the amount of a variable life benefit. 150 Section 10.2 of the Act is amended by adding the following after subsection (2): Transfer from variable life benefit fund (3) Subject to section 16.91 and subsection 29(12), the administrator may transfer or permit the transfer of any part of the assets of a variable life benefit fund estab- lished under subsection 16.6(1) to another pension plan, including a pension plan to which this Act does not ap- ply, only with the Superintendent’s permission. 151 The Act is amended by adding the following after section 16.5: Variable Life Benefits Fund and benefits 16.6 (1) Subject to the regulations, a pension plan may (a) provide for the establishment within the pension fund of a variable life benefit fund from which variable life benefits are to be paid; and (b) provide that a person referred to in subsection (2) may, in order to receive variable life benefits, elect to transfer to the variable life benefit fund any amounts in either or both of the following accounts: (i) their account in the pension fund maintained in respect of a defined contribution provision, and 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 2 Private Sector Pension Plans Pension Benefits Standards Act, 1985 Sections 148-151 Page 150 (ii) their account in the pension fund maintained for additional voluntary contributions. Persons who may elect (2) The following persons may make the election re- ferred to in paragraph (1)(b): (a) a member or former member who is entitled to an immediate pension benefit under subsection 16(1) or eligible to receive an immediate pension benefit under subsection 16(2); (b) a survivor who is entitled to pension benefits un- der the pension plan. Conditions on election 16.7 A person referred to in subsection 16.6(2) may elect to transfer amounts to the variable life benefit fund only if the prescribed conditions are met. No accounts in fund 16.8 A variable life benefit fund does not contain indi- vidual accounts for recipients of variable life benefits and, for greater certainty, a reference in this Act to an ac- count, made in relation to a defined contribution provi- sion or a defined contribution plan, is not to be construed as referring to amounts held within a variable life benefit fund. Termination 16.9 (1) This section, and not section 29, applies with respect to the termination of a variable life benefit fund if that termination includes only the termination of one or more such funds and the whole of the plan is not being terminated. No partial termination (2) A partial termination of a variable life benefit fund is not permitted. Termination by administrator (3) Subject to subsection (4), a variable life benefit fund is terminated only if the administrator of the pension plan notifies the Superintendent — in writing or in the form and manner, if any, that the Superintendent directs — of the decision to terminate the fund and the date of termination, not less than 60 days and not more than 180 days before the date of termination. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 2 Private Sector Pension Plans Pension Benefits Standards Act, 1985 Section 151 Page 151 Declaration by Superintendent (4) In the prescribed circumstances, the Superintendent may declare a variable life benefit fund to be terminated as of the date that the Superintendent considers appro- priate. Termination report (5) On the termination of a variable life benefit fund, the administrator shall file with the Superintendent — in the form and manner, if any, that the Superintendent directs — a termination report that contains the prescribed in- formation and that is prepared by a person having the prescribed qualifications. Approval of termination report (6) Assets of the variable life benefit fund may not be ap- plied toward the provision of any benefits until the Su- perintendent has approved the termination report. The administrator may nevertheless pay variable life benefits, as they fall due, to the persons entitled to them. Transfer or purchase on termination 16.91 (1) On the termination of a variable life benefit fund under section 16.9, a former member or survivor who was receiving a variable life benefit from the fund is entitled to (a) transfer, for the purpose of making an election to receive a variable benefit under section 16.2, the amount of the aggregate value of their variable life benefits at termination to an account maintained in the pension plan in respect of a defined contribution provision, if the pension plan provides for such an election; (b) transfer that amount to another pension plan, in- cluding one referred to in any of paragraphs 26(5)(a) to (c), if that other plan permits; (c) transfer that amount to a retirement savings plan of the prescribed kind for the former member or sur- vivor, as the case may be; or (d) use that amount to purchase an immediate or de- ferred life annuity of the prescribed kind for the for- mer member or survivor, as the case may be. Aggregate value (2) The aggregate value of a person’s variable life bene- fits at termination is to be calculated in the prescribed manner. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 2 Private Sector Pension Plans Pension Benefits Standards Act, 1985 Section 151 Page 152 Survivor (3) For the purposes of paragraph (1)(a), a survivor may make an election under section 16.2 as if they were a for- mer member, but neither paragraph 16.2(2)(a) nor sec- tion 16.3 apply with respect to the survivor. Superintendent may direct winding-up 16.92 If a variable life benefit fund has been terminated under section 16.9 and the Superintendent is of the opin- ion that no action or insufficient action has been taken to wind up the fund, the Superintendent may direct the ad- ministrator to distribute the assets of the fund, and may direct that any expenses incurred in connection with that distribution be paid out of the fund, and the administra- tor shall comply with any such direction without delay. 152 (1) Paragraphs 18(1)(a) and (b) of the Act are replaced by the following: (a) that no benefit provided under the plan is capable of being assigned, charged, anticipated or given as se- curity or confers on a member or former member, that person’s personal representative or dependant or any other person any right or interest in the benefit that is capable of being assigned, charged, anticipated or giv- en as security; (b) that, except in the case of the unexpired period of a guaranteed annuity, no benefit described in section 16 or 17 is capable of being surrendered or commuted during the lifetime of the member or former member or that person’s spouse or common-law partner or confers on a member or former member, on that per- son’s personal representative or dependant or on any other person any right or interest in the benefit that is capable of being surrendered or commuted during the lifetime of the member or former member or that per- son’s spouse or common-law partner; and (2) Paragraphs 18(1)(b) and (c) of the Act are re- placed by the following: (b) that, except in the case of the unexpired period of a guaranteed annuity or as provided in section 16.4 or 16.91 or subsection 29(12), no benefit described in sec- tion 16 or 17 is capable of being surrendered or com- muted during the lifetime of the member or former member or that person’s spouse or common-law part- ner or confers on a member or former member, on that person’s personal representative or dependant or on any other person any right or interest in the benefit that is capable of being surrendered or commuted during the lifetime of the member or former member or that person’s spouse or common-law partner; and 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 2 Private Sector Pension Plans Pension Benefits Standards Act, 1985 Sections 151-152 Page 153 (c) with respect to a person who has been a member for a continuous period of at least two years, that, ex- cept as provided in section 16.4, 16.91 or 26 or subsec- tion 29(12), that person — if they are entitled to a ben- efit described in section 16 or 17 or would be entitled to the benefit if they retired or ceased membership in the plan — is not permitted to withdraw any part of their contributions to the plan, other than additional voluntary contributions, in respect of any period of membership in the plan on or after October 1, 1967 for which they are entitled to the benefit, and that any pension fund moneys attributable to those contribu- tions shall be applied under the terms of the plan to- ward the payment of the benefit. 153 (1) The portion of subsection 26(1) of the French version of the Act before paragraph (a) is replaced by the following: Transfert avant l’admissibilité à la retraite 26 (1) Le participant dont la participation a pris fin avant qu’il n’ait droit à la prestation visée au paragraphe 16(2), ou son survivant, dans le cas où le participant meurt avant d’y avoir droit, peut, s’il informe l’adminis- trateur de son intention, en la forme réglementaire, dans les quatre-vingt-dix jours suivant l’événement en cause, ou si le surintendant accorde un délai supplémentaire au titre de l’alinéa 28(1)d), dans les soixante jours suivant la remise du relevé visé par cet alinéa ou, si sa participation prend fin en raison de la cessation totale du régime de pension, dans les soixante jours suivant la remise du re- levé visé à l’alinéa 28(2.1)b) : (2) The portion of subsection 26(1) of the English version of the Act after paragraph (c) is replaced by the following: if the member or the survivor notifies the administrator of that desire, in the prescribed form and within 90 days after the cessation of membership or the member’s death (or, if the Superintendent allows a longer period under paragraph 28(1)(d), within 60 days after the administra- tor has given the written statement under that para- graph) — or, if the member ceases to be a member be- cause the whole of the pension plan is terminated, within 60 days after the administrator has given the written statement under paragraph 28(2.1)(b) — and the admin- istrator shall without delay take any necessary action to give effect to the notification. 154 Section 27 of the Act is amended by adding the following after subsection (3): 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 2 Private Sector Pension Plans Pension Benefits Standards Act, 1985 Sections 152-154 Page 154 Variable life benefits (4) The application of subsections (1) to (3) with respect to variable life benefits may be adapted, restricted or ex- cluded under the regulations. 155 (1) The portion of paragraph 28(1)(b.1) of the Act before subparagraph (i) is replaced by the following: (b.1) that each former member of the plan and the former member’s spouse or common-law partner, as well as each survivor who is entitled to pension bene- fits under the plan, will be given, in the prescribed cir- cumstances and manner and within six months — or any longer period permitted by the Superintendent — after the end of each year of operation of the plan, a written statement showing (2) The portion of paragraph 28(1)(b.1) of the Act before subparagraph (i) is replaced by the fol- lowing: (b.1) that, other than with respect to variable life ben- efits, each former member of the plan and the former member’s spouse or common-law partner, as well as each survivor who is entitled to pension benefits under the plan, will be given, in the prescribed circum- stances and manner and within six months — or any longer period permitted by the Superintendent — after the end of each year of operation of the plan, a written statement showing (3) Section 28 of the Act is amended by adding the following after subsection (2): Variable life benefit fund (2.01) A pension plan with a variable life benefit fund shall provide that each former member and survivor who is receiving a variable life benefit from the fund, as well the spouse or common-law partner of each such former member, will be given the prescribed information in the prescribed circumstances and manner and within the prescribed period or within any longer period permitted by the Superintendent. (4) Subsection 28(2.1) of the Act is replaced by the following: Information on plan termination (2.1) A pension plan shall provide that if the whole of the plan is terminated, the administrator shall give to each member and former member and to the spouse or com- mon-law partner of each member and former member, as well as to each survivor who is entitled to pension ben- efits under the plan, a written statement, in the pre- scribed form, informing them of 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 2 Private Sector Pension Plans Pension Benefits Standards Act, 1985 Sections 154-155 Page 155 (a) the termination of the plan, within 30 days after the termination or any longer period permitted by the Superintendent; and (b) the member’s, former member’s or survivor’s pen- sion benefits and other benefits payable under the plan, within 120 days after the termination or any longer period that the Superintendent may allow. (5) Section 28 of the Act is amended by adding the following after subsection (2.1): Information — termination of variable life benefit fund (2.2) A pension plan with a variable life benefit fund shall provide that, if the fund is terminated under section 16.9, the administrator shall give to each former member and survivor who is receiving a variable life benefit from the fund, as well as to the spouse or common-law partner of each such former member, a written statement, in the prescribed form, that (a) informs them of the termination of the fund, with- in 30 days after the termination or any longer period permitted by the Superintendent; and (b) provides them with the prescribed information, within 120 days after the termination or any longer pe- riod permitted by the Superintendent. 156 (1) Subsection 29(6.1) of the French version of the Act is replaced by the following: Obligation de l’employeur (6.1) S’il y a cessation totale d’un régime de pension autre qu’un régime à cotisations négociées, l’employeur est tenu de verser au fonds de pension, conformément aux règlements, la somme, calculée périodiquement conformément aux règlements, qui est nécessaire pour que soient acquittées toutes les obligations du régime à l’égard des prestations de pension déterminées à la date de la cessation. (2) Subsections 29(6.3) and (6.4) of the French ver- sion of the Act are replaced by the following: Paiement en trop (6.3) À la liquidation du régime de pension, s’il reste dans le fonds de pension un solde qui excède la somme nécessaire pour permettre au régime de s’acquitter de toutes ses obligations à l’égard des prestations de pen- sion déterminées à la date de la cessation, la partie du solde qui est, selon les règlements, attribuable aux paie- ments effectués par l’employeur sous le régime du 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 2 Private Sector Pension Plans Pension Benefits Standards Act, 1985 Sections 155-156 Page 156 paragraphe (6.1) ne constitue pas un excédent et, sous ré- serve du paragraphe (7), ce dernier a droit de la recou- vrer. Liquidation ou faillite (6.4) En cas de liquidation du régime de pension ou de liquidation, de cession de biens ou de faillite de l’em- ployeur, est immédiatement exigible la somme nécessaire pour permettre au régime de s’acquitter de toutes ses obligations à l’égard des prestations de pension détermi- nées à la date de la cessation. (3) Section 29 of the Act is amended by adding the following after subsection (11): Variable life benefits — transfer or purchase (12) If a variable life benefit fund has been terminated as part of a termination under this section, a former mem- ber or survivor who was receiving a variable life benefit from the fund is entitled to (a) transfer the amount of the aggregate value of their variable life benefits at termination, calculated in the prescribed manner, to another pension plan, including one referred to in any of paragraphs 26(5)(a) to (c), if that other plan permits; (b) transfer that amount to a retirement savings plan of the prescribed kind for the former member or sur- vivor, as the case may be; or (c) use that amount to purchase an immediate or de- ferred life annuity of the prescribed kind for the for- mer member or survivor, as the case may be. 157 (1) Paragraph 36(2)(b) of the Act is replaced by the following: (b) any money withdrawn from a pension fund under section 16.4, 16.91 or 26 or subsection 29(12) (2) The portion of subsection 36(3) of the Act be- fore paragraph (a) is replaced by the following: Exception (3) Subsection (2) does not apply to prevent the assign- ment of a right or interest in a pension benefit, or in a life annuity of the prescribed kind resulting from a transfer or purchase under section 26, if the assignment 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 2 Private Sector Pension Plans Pension Benefits Standards Act, 1985 Sections 156-157 Page 157 (3) The portion of subsection 36(3) of the Act be- fore paragraph (a) is replaced by the following: Exception (3) Subsection (2) does not apply to prevent the assign- ment of a right or interest in a pension benefit, or in a life annuity of the prescribed kind resulting from a transfer or purchase under section 16.4, 16.91 or 26 or subsection 29(12), if the assignment (4) Paragraphs 36(4)(a) and (b) of the Act are re- placed by the following: (a) to surrender or commute a benefit, or any right or interest in the benefit, or (b) to surrender or commute benefits payable as a re- sult of a transfer or purchase under section 26 (5) Paragraph 36(4)(b) of the Act is replaced by the following: (b) to surrender or commute benefits payable as a re- sult of a transfer or purchase under section 16.4, 16.91 or 26 or subsection 29(12) 158 Subsection 39(1) of the Act is amended by adding the following after paragraph (k.2): (k.3) respecting variable life benefits and variable life benefit funds; (k.4) respecting the manner in which the actuarial present value of variable life benefits is to be calculat- ed; 2012, c. 16 Pooled Registered Pension Plans Act 159 (1) The definition member in subsection 2(1) of the Pooled Registered Pension Plans Act is re- placed by the following: member means a person who holds an account with, or who is entitled to receive a variable life payment under, a pooled registered pension plan. (participant) 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 2 Private Sector Pension Plans Pension Benefits Standards Act, 1985 Sections 157-159 Page 158 (2) Subsection 2(1) of the Act is amended by adding the following in alphabetical order: variable life payment means a periodic amount that a member is entitled to receive under a pooled registered pension plan and that varies as a function of factors that include (a) the amount or rate of return attributable to the in- vestment of the assets of the fund from which the pay- ment is made; and (b) the rate of mortality of the pool of persons who are entitled to receive payments from that fund. (paie- ment viager variable) variable life payment credit, in relation to a member, means the aggregate value at a particular time of the variable life payments that the member is entitled to re- ceive under a pooled registered pension plan, calculated in the prescribed manner. (somme des paiements via- gers variables) 160 Section 3 of the Act is replaced by the follow- ing: Purpose 3 The purpose of this Act is to provide a legal framework for the establishment and administration of a type of pension plan that is accessible to employees and self-em- ployed persons and that pools funds to achieve lower costs in relation to investment management and plan ad- ministration. 161 Section 4 of the Act is replaced by the follow- ing: Application of Act 4 This Act applies in respect of a member of a pooled registered pension plan who (a) is employed, other than in one of the territories, in included employment by an employer that participates in the plan; (b) is employed in included employment in a territory or is a self-employed person in a territory; or (c) is part of a prescribed class of members. 162 Section 17 of the Act is replaced by the fol- lowing: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 2 Private Sector Pension Plans Pooled Registered Pension Plans Act Sections 159-162 Page 159 Records 17 An administrator of a pooled registered pension plan must keep records that are sufficient to allow a member’s share of the assets of the plan, as well as a member’s vari- able life payments and variable life payment credit, to be determined. 163 Subsections 22(4) and (5) of the Act are re- placed by the following: Manner of investing (4) The administrator must invest the funds in members’ accounts and in a variable life payment fund, and must do so in a manner that a reasonable and prudent person would apply in respect of a portfolio of investments ap- propriate for retirement savings. Investment manager (5) The administrator is entitled to engage the services of any investment manager it chooses for the purposes of investing the funds in members’ accounts or in a variable life payment fund. 164 Subsection 23(1) of the Act is replaced by the following: Investment choices 23 (1) A pooled registered pension plan may permit a member to make investment choices with respect to funds in their account from among the investment op- tions offered by the administrator. 165 Section 25 of the Act is replaced by the fol- lowing: Prohibition — investment choices 25 The administrator must not change an investment choice made by a member under section 23 except on the request of the member or in the circumstances specified in the regulations. 166 (1) Subsection 43(1) of the Act is replaced by the following: Transfer of assets to new plan 43 (1) An employer that provides a pooled registered pension plan to a class of employees and enters into a contract with an administrator to provide a new pooled registered pension plan to that class must cause the as- sets of the former plan, other than any assets in a vari- able life payment fund, to be transferred to the new plan and must provide the notification referred to in subsec- tion 41(2) to the employees in that class. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 2 Private Sector Pension Plans Pooled Registered Pension Plans Act Sections 162-166 Page 160 (2) Subsection 43(3) of the Act is replaced by the following: Costs (3) The employer is responsible for all of the costs in re- lation to the transfer of assets under subsection (1) from one pooled registered pension plan to another. 167 Section 44 of the Act is replaced by the fol- lowing: Termination of membership 44 A member of a pooled registered pension plan, other than one who has become a member under section 39 or 40 or who is entitled to receive variable life payments un- der the plan, may terminate their membership in the plan by notifying the administrator. 168 (1) Paragraph 47(1)(a) of the Act is replaced by the following: (a) the funds in a member’s account with the plan and a member’s variable life payments, as well as any in- terest or right in those funds or payments, are not ca- pable of being transferred, charged, attached, antici- pated or given as security and that any transaction ap- pearing to do so is void or, in Quebec, null; (2) Paragraphs 47(1)(c) and (d) of the Act are re- placed by the following: (c) a member is not permitted to withdraw the funds in their account or in a variable life payment fund; (d) an administrator is not permitted to withdraw the funds from a member’s account or from a variable life payment fund; and (e) a member’s variable life payments, as well as an interest or right in those payments, are not capable of being surrendered or, subject to section 51.6 and sub- section 62(12), commuted. 169 The Act is amended by adding the following after section 51: Variable Life Payments Fund and payments 51.1 Subject to the regulations, a pooled registered pen- sion plan may 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 2 Private Sector Pension Plans Pooled Registered Pension Plans Act Sections 166-169 Page 161 (a) provide for the establishment, as part of the plan, of a variable life payment fund from which variable life payments are to be paid; and (b) provide that a member who has reached the pre- scribed age fixed for the purposes of this paragraph may, in order to receive variable life payments, elect to transfer any funds in their account to the variable life payment fund. Conditions on election 51.2 A member referred to in paragraph 51.1(b) may elect to transfer funds to the variable life payment fund only if the prescribed conditions are met. No accounts in fund 51.3 A variable life payment fund does not contain indi- vidual accounts for members and, for greater certainty, a reference in this Act to a member’s account is not to be construed as referring to funds held within a variable life payment fund. Transfer from variable life payment fund 51.4 Subject to section 51.6 and subsection 62(12), the administrator may transfer or permit the transfer of any part of the assets of a variable life payment fund to any other pension plan, including another pooled registered pension plan or a pension plan not under federal legisla- tive authority, only with the Superintendent’s permis- sion. Termination 51.5 (1) This section applies with respect to the termi- nation of a variable life payment fund in the case where the pooled registered pension plan is not being terminat- ed. Declaration by Superintendent (2) In the prescribed circumstances, the Superintendent may declare a variable life payment fund to be terminat- ed as of the date that the Superintendent considers ap- propriate. Notification — employers and members (3) An administrator must, not less than 60 and not more than 180 days before the day on which it terminates a variable life payment fund, provide written notification of the termination to each employer that participates in the plan, each member of the plan and the spouse or common-law partner of each member. The notice must specify the date of the termination. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 2 Private Sector Pension Plans Pooled Registered Pension Plans Act Section 169 Page 162 Non-application (4) Subsection (3) does not apply with respect to a spouse or common-law partner of a person who is enti- tled to receive variable life payments (a) as a result of the person being a survivor of a de- ceased member; or (b) under section 53 as the result of divorce, annul- ment, separation or breakdown of a common-law partnership. Notification — Superintendent (5) An administrator must, not less than 60 and not more than 180 days before the day on which it terminates a variable life payment fund, notify the Superintendent of the termination. The notice must specify the date of the termination and be in the form and manner directed by the Superintendent. Termination report (6) On the termination of a variable life payment fund, the administrator must file with the Superintendent, in the form and manner that the Superintendent may di- rect, a termination report that contains the prescribed in- formation and that is prepared by a person having the prescribed qualifications. Approval of termination report (7) Assets of the variable life payment fund must not be used or transferred for any purpose until the Superinten- dent has approved the termination report, except that the administrator of the plan may make variable life pay- ments, as they fall due, to the members entitled to re- ceive them. Transfer or purchase on termination 51.6 On the termination of a variable life payment fund under section 51.5, a member who was receiving variable life payments from the fund is entitled to (a) transfer, for the purpose of making an election to receive variable payments under section 48, their vari- able life payment credit to an account with the pooled registered pension plan, if the plan provides for such an election; (b) transfer their variable life payment credit to an- other pooled registered pension plan or another pen- sion plan, if that other plan permits; (c) transfer their variable life payment credit to a re- tirement savings plan of the prescribed kind for the member; or 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 2 Private Sector Pension Plans Pooled Registered Pension Plans Act Section 169 Page 163 (d) use their variable life payment credit to purchase an immediate or deferred life annuity of the pre- scribed kind for the member. Superintendent may direct winding-up 51.7 If a variable life payment fund has been terminated under section 51.5 and the Superintendent is of the opin- ion that no action or insufficient action has been taken to wind up the fund, the Superintendent may direct the ad- ministrator to distribute the assets of the fund, and may direct that any expenses incurred in connection with that distribution be paid out of the fund, and the administra- tor must comply with any such direction without delay. 170 (1) Subsection 53(2) of the Act is replaced by the following: Funds in member’s account (2) Subject to subsection (3), the funds in the account of a member of a pooled registered pension plan — and, subject to subsection (4.1) and the regulations, a mem- ber’s variable life payments and variable life payment credit — are, on divorce, annulment, separation or break- down of common-law partnership, subject to provincial law relating to the distribution of property. Non-application of Act (2.1) A member’s variable life payments and variable life payment credit that are subject to provincial law relating to the distribution of property under this section are not subject to the provisions of this Act relating to the valua- tion or distribution of variable life payments and variable life payment credits, as the case may be. (2) Section 53 of the Act is amended by adding the following after subsection (4): Power to assign (4.1) A member of a pooled registered pension plan may assign all or part of their variable life payments or vari- able life payment credit to their spouse, former spouse, common-law partner or former common-law partner, ef- fective as of divorce, annulment, separation or break- down of the common-law partnership, as the case may be. However, a subsequent spouse or common-law part- ner of the assignee is not entitled to any variable life pay- ments or variable life payment credit under the plan in respect of that assigned portion. (3) The portion of subsection 53(5) of the Act be- fore paragraph (b) is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 2 Private Sector Pension Plans Pooled Registered Pension Plans Act Sections 169-170 Page 164 Duty of administrator (5) On divorce, annulment, separation or breakdown of a common-law partnership, if a court order or an agree- ment between the parties provides for the distribution of property between a member and their spouse, former spouse or former common-law partner, the administra- tor must determine and administer the member’s ac- count, their variable life payments and their variable life payment credit in the prescribed manner and in accor- dance with the court order or the agreement, on receipt of (a) a written request from either the member or their spouse, former spouse or former common-law partner that all or part of the funds in the member’s account, of their variable life payments or of their variable life payment credit be distributed or administered in ac- cordance with the court order or the agreement; and (4) The portion of subsection 53(5) of the English version of the Act after paragraph (b) is replaced by the following: However, in the case of a court order, the administrator must not administer the member’s account, their variable life payments or their variable life payment credit in ac- cordance with the court order until all appeals from that order have been finally determined or the time for ap- pealing has expired. 171 Subsection 54(1) of the Act is amended by adding the following after paragraph (b): (b.1) a member who, while receiving variable life pay- ments under the plan, retains an account with the plan and who notifies the administrator of their intention to transfer or use the funds in their account; 172 (1) The portion of paragraph 57(1)(b) of the Act before subparagraph (i) is replaced by the following: (b) that, other than with respect to variable life pay- ments, each member of the plan will be given, in the prescribed circumstances and manner, and within 45 days after the end of each year or any longer period specified by the Superintendent, a written statement showing (2) Paragraphs 57(1)(d) and (e) of the Act are re- placed by the following: (d) that, if a member has provided notice under sec- tion 44 or paragraph 54(1)(b.1) or is no longer 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 2 Private Sector Pension Plans Pooled Registered Pension Plans Act Sections 170-172 Page 165 employed by an employer that is participating in the plan, the administrator must give to the member a statement in the prescribed form within 30 days after the day on which the notice was provided or the em- ployee’s employment with the employer ceased, or any longer period permitted by the Superintendent; (d.1) that, if the plan is terminated under section 62, the administrator must give to the member a state- ment in the prescribed form within 30 days after the plan’s date of termination — or, if the member was re- ceiving variable life payments under the plan, within 120 days after that date — or any longer period permit- ted by the Superintendent; and (e) that, in the case of a member’s death, the adminis- trator must give — to the survivor, if there is one, to the member’s designated beneficiary, if the adminis- trator has been notified of the designation and there is no survivor, or, in every other case, to the executor or administrator of the member’s estate or to the liquida- tor of the member’s succession — a statement in the prescribed form within 30 days after the day on which the administrator received notice of the death or any longer period permitted by the Superintendent. 173 The Act is amended by adding the following after section 57: Variable life payment fund 57.1 (1) A pooled registered pension plan with a vari- able life payment fund must provide that each person who is receiving variable life payments from the fund will be given the prescribed information in the prescribed cir- cumstances and manner, within the prescribed period or any longer period permitted by the Superintendent. Information — termination of variable life payment fund (2) A pooled registered pension plan with a variable life payment fund must provide that, if the fund is terminat- ed under section 51.5, the administrator must, within 120 days after the termination or any longer period permitted by the Superintendent, give to each person who is receiv- ing variable life payments from the fund a statement in the prescribed form that contains the prescribed infor- mation. 174 Subsections 62(10) and (11) of the Act are re- placed by the following: Assets not to be used or transferred (10) Assets of the pooled registered pension plan must not be used or transferred for any purpose until the 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 2 Private Sector Pension Plans Pooled Registered Pension Plans Act Sections 172-174 Page 166 Superintendent has approved the termination report. However, the administrator of the plan may make vari- able payments and variable life payments, as they fall due, to any persons entitled to receive them. Superintendent may direct winding-up (11) If a pooled registered pension plan has been termi- nated and the Superintendent is of the opinion that no action or insufficient action has been taken to wind up the plan, the Superintendent may direct the administra- tor to distribute the funds in the members’ accounts and in any variable life payment fund and may direct that any expenses incurred in connection with that distribution be paid out of the members’ accounts or the variable life payment fund, as the case may be, and the administrator must comply with that direction without delay. Variable life payments — transfer or purchase (12) On the termination of a pooled registered pension plan, a member who was receiving a variable life pay- ment under the plan is entitled to (a) transfer their variable life payment credit to anoth- er pooled registered pension plan or another pension plan, if that other plan permits; (b) transfer their variable life payment credit to a re- tirement savings plan of the prescribed kind for the member; or (c) use their variable life payment credit to purchase an immediate or deferred life annuity of the pre- scribed kind for the member. 175 Paragraphs 72(a) and (b) of the Act are re- placed by the following: (a) any funds in an account with a pooled registered pension plan, any variable life payments or a right or interest in those funds or payments; or (b) any funds withdrawn under section 50, 51.6 or 54 or subsection 62(12), or a right or interest in those funds. 176 Subsection 73(1) of the Act is amended by striking out “or” at the end of paragraph (a) and by replacing paragraph (b) with the following: (a.1) a right or interest in a variable life payment; or 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 2 Private Sector Pension Plans Pooled Registered Pension Plans Act Sections 174-176 Page 167 (b) a right or interest in any funds withdrawn under section 50, 51.6 or 54 or subsection 62(12). 177 (1) Paragraphs 76(1)(e) to (h) of the Act are replaced by the following: (e) respecting the management and investment of funds in members’ accounts and in a variable life pay- ment fund, including the way in which the funds are to be held; (f) respecting the process by which investment op- tions are offered by an administrator under section 23 and choices among those options are made; (g) respecting investment options offered by an ad- ministrator under section 23; (h) specifying the circumstances in which an adminis- trator may change an investment choice made by a member under section 23; (2) Paragraphs 76(1)(q) and (r) of the Act are re- placed by the following: (p.1) respecting variable life payments and variable life payment funds; (p.2) prescribing the manner in which variable life payment credits are to be determined and fixing the time as of which the determination is to be made; (q) respecting the transfer of funds by the administra- tor from a pooled registered pension plan; (r) respecting the distribution of the funds from a pooled registered pension plan that is being wound up; R.S., c. H-6 Consequential Amendment to the Canadian Human Rights Act 178 Paragraph 15(1)(d.1) of the Canadian Hu- man Rights Act is replaced by the following: (d.1) the terms of any pooled registered pension plan provide for variable payments, variable life payments or the transfer of funds only at a fixed age under sec- tions 48, 51.1 and 55, respectively, of the Pooled Regis- tered Pension Plans Act; 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 2 Private Sector Pension Plans Pooled Registered Pension Plans Act Sections 176-178 Page 168 Coordinating Amendments 2019, c. 29 179 (1) In this section, other Act means the Bud- get Implementation Act, 2019, No. 1. (2) If subsections 145(2) and (3) of the other Act come into force before subsection 148(3) of this Act, then, on the day on which that subsection 148(3) comes into force, paragraph (b) of the defi- nition former member in subsection 2(1) of the Pension Benefits Standards Act, 1985 is amended by striking out “or” at the end of subparagraph (ii) and by adding the following after that sub- paragraph: (ii.1) had a life annuity purchased for them that, under section 17.2, satisfies all of the plan’s obliga- tions with respect to their pension benefits or to any other benefit or option referred to in paragraph 17(b), or (3) If subsection 148(3) of this Act comes into force before subsections 145(2) and (3) of the oth- er Act, then those subsections 145(2) and (3) are replaced by the following: (2) Paragraph (b) of the definition former member in subsection 2(1) of the Act is amended by strik- ing out “or” at the end of subparagraph (ii) and by adding the following after that subparagraph: (ii.1) had a life annuity purchased for them that, under section 17.2, satisfies all of the plan’s obliga- tions with respect to their pension benefits or to any other benefit or option referred to in paragraph 17(b), or (4) If subsections 145(2) and (3) of the other Act come into force on the same day as subsection 148(3) of this Act, then those subsections 145(2) and (3) are deemed to have come into force 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 2 Private Sector Pension Plans Coordinating Amendments Section 179 Page 169 before that subsection 148(3) and subsection (2) applies as a consequence. Coming into Force Order in council 180 (1) Sections 148 to 158 — other than subsec- tions 148(2) and 152(1), section 153 and subsec- tions 155(1) and (4), 156(1) and (2) and 157(2) and (4) — come into force on a day to be fixed by or- der of the Governor in Council. Order in council (2) Sections 159 to 178 come into force on a day to be fixed by order of the Governor in Council. DIVISION 3 Measures Related to Money Laundering and to Digital Assets and Other Measures SUBDIVISION A 2000, c. 17; 2001, c. 41, s. 48 Proceeds of Crime (Money Laundering) and Terrorist Financing Act Amendments to the Act 181 Subsection 7.1(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act is replaced by the following: Disclosure 7.1 (1) Every person or entity referred to in section 5 shall report to the Centre in accordance with the regula- tions if the person or entity is required to make a disclo- sure under (a) section 83.1 of the Criminal Code; (b) section 8 of the Regulations Implementing the United Nations Resolutions on the Suppression of Terrorism; (c) an order or regulation made under the Special Economic Measures Act; or 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 2 Private Sector Pension Plans Coordinating Amendments Sections 179-181 Page 170 (d) subsection 7(2) of the Justice for Victims of Cor- rupt Foreign Officials Act (Sergei Magnitsky Law). 182 The Act is amended by adding the following after section 9.8: Definition of agent or mandatary 9.9 In sections 9.91 to 9.93, agent or mandatary means an agent or mandatary acting on behalf of a person or en- tity referred to in paragraph 5(h) to provide any of the services referred to in that paragraph. Agent or mandatary 9.91 A person or entity referred to in paragraph 5(h) shall (a) not engage a person or entity who is referred to in any of paragraphs 11.11(1)(a) to (f) as an agent or mandatary; and (b) cease engaging an agent or mandatary if they are a person or entity referred to in any of those para- graphs. Duty to verify 9.92 A person or entity referred to in paragraph 5(h) shall (a) before engaging an agent or mandatary, verify whether they are a person or entity referred to in any of paragraphs 11.11(1)(a) to (f); and (b) within 30 days after the second anniversary of the most recent verification of an agent or mandatary un- der this section, verify whether the agent or man- datary, if they are acting on behalf of the person or en- tity on that anniversary, is a person or entity referred to in any of those paragraphs. Agent or mandatary — criminal convictions 9.93 (1) A person or entity referred to in paragraph 5(h) shall, in respect of an agent or mandatary, obtain and re- view the documents referred to in subsection (2) (a) before engaging the agent or mandatary; and (b) within 30 days after the second anniversary of the most recent review carried out in respect of the agent or mandatary under this subsection, if the agent or mandatary is acting on behalf of the person or entity on that anniversary. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 3 Measures Related to Money Laundering and to Digital Assets and Other Measures SUBDIVISION A Proceeds of Crime (Money Laundering) and Terrorist Financing Act Sections 181-182 Page 171 Documents (2) The documents to be obtained and reviewed are the following: (a) if the agent or mandatary is a person, a document that sets out their record of criminal convictions, or states that the person does not have one, that is issued by a competent authority of — or an entity or authority that is competent to issue the document in — the juris- diction in which the person resides; or (b) if the agent or mandatary is an entity, for each of the chief executive officer, the president and the direc- tors of the entity and for each person who owns or controls, directly or indirectly, 20% or more of the en- tity or the shares of the entity, a document that sets out the person’s record of criminal convictions, or states that the person does not have one, and that is issued by a competent authority of — or an entity or authority that is competent to issue the document in — the jurisdiction in which the person resides. Translation (3) If any document referred to in this section is made in a language other than English or French, the person or entity shall also obtain and review a translation of it into one of those languages that is attested to by a person who is recognized as a certified translator either by a provin- cial organization or body that is competent under provin- cial law to issue such certifications or by an organization or body in a foreign state that is competent under the laws of that state to do so. Retention (4) The person or entity shall retain, for a prescribed pe- riod and in the prescribed manner, any document ob- tained under this section as well as any prescribed infor- mation. 183 Section 11.1 of the Act is replaced by the fol- lowing: Registration requirement 11.1 Except as otherwise prescribed by regulation, every person or entity referred to in paragraph 5(h) or (h.1), those referred to in paragraph 5(l) that issue or sell mon- ey orders to, or redeem them from, the public, and every other person or entity that is referred to in section 5 and that is prescribed must register with the Centre. 184 Subsection 11.11(2) of the Act is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 3 Measures Related to Money Laundering and to Digital Assets and Other Measures SUBDIVISION A Proceeds of Crime (Money Laundering) and Terrorist Financing Act Sections 182-184 Page 172 Revocation of registration (2) If a person or entity referred to in subsection (1) is registered with the Centre, its registration is revoked as of the day the person or entity becomes ineligible to reg- ister under that subsection. If the Centre becomes aware that a person’s or entity’s registration was revoked under this subsection, it must provide, without delay, a written notice of the revocation to that person or entity. 185 (1) Paragraphs 11.12(1)(b) and (c) of the Act are replaced by the following: (b) if the applicant is a person referred to in para- graph 5(h) or (h.1), a document that sets out the per- son’s record of criminal convictions, or states that the person does not have one, that is issued by a compe- tent authority of — or an entity or authority that is competent to issue the document in — the jurisdiction in which the person resides; (c) if the applicant is an entity referred to in para- graph 5(h) or (h.1), for each of the chief executive offi- cer, the president and the directors of the entity and for each person who owns or controls, directly or indi- rectly, 20% or more of the entity or the shares of the entity, a document that sets out the person’s record of criminal convictions, or states that the person does not have one, and that is issued by a competent au- thority of — or an entity or authority that is competent to issue the document in — the jurisdiction in which the person resides; (c.1) if the applicant is a person or entity referred to in paragraph 5(h.1), the name and address for service of a person who resides in Canada and who is autho- rized to accept, on behalf of the person or entity, no- tices that are served or caused to be served by the Cen- tre under this Act; (c.2) if the applicant is an entity, the prescribed infor- mation in respect of the entity’s incorporation or for- mation; and (2) Section 11.12 of the Act is amended by adding the following after subsection (1): Translation (1.1) If a document referred to in paragraph (1)(b) or (c) is made in a language other than English or French, the application shall include a translation of it into one of those languages attested to by a person who is recognized as a certified translator either by a provincial organiza- tion or body that is competent under provincial law to 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 3 Measures Related to Money Laundering and to Digital Assets and Other Measures SUBDIVISION A Proceeds of Crime (Money Laundering) and Terrorist Financing Act Sections 184-185 Page 173 issue such certifications or by an organization or body in a foreign state that this competent under the laws of that state to do so. 186 Subsection 11.13(2) of the Act is replaced by the following: Denial or revocation (2) If the name or address for service of a person referred to in paragraph 11.12(1)(c.1) changes, and an applicant or registered person or entity who is or was required to provide the information described in that paragraph does not, within the period referred to in subsection (1), pro- vide the Centre with the new name or address for service, the Centre shall without delay after becoming aware of that fact deny the application, or revoke the registration, as the case may be, and shall, without delay, inform the applicant or registered person or entity of the denial or revocation. 187 The Act is amended by adding the following after section 11.17: Revocation — contravention 11.171 The Centre may revoke the registration of a per- son or entity that contravenes subsection 62(2) or a no- tice served under section 63.1 and shall, without delay, inform the person or entity of the revocation. 188 Subsection 11.4(3) of the Act is replaced by the following: Precautions against disclosure (3) In an appeal, the Court shall take every reasonable precaution, including, when appropriate, conducting hearings in private, to avoid the disclosure by the Court or any person or entity of information referred to in sub- section 55(1). However, the Court is not required to take those precautions with respect to the appellant’s name and operating name. 189 Subsection 11.42(4) of the Act is amended by striking out “or” at the end of paragraph (a), by adding “or” at the end of paragraph (b) and by adding the following after paragraph (b): (c) there is a risk that a foreign state, a foreign entity or a person or entity referred to in section 5 may be fa- cilitating the financing of threats to the security of Canada and, as a result, the Minister is of the opinion that there could be an adverse impact on the integrity of the Canadian financial system or a reputational risk to that system. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 3 Measures Related to Money Laundering and to Digital Assets and Other Measures SUBDIVISION A Proceeds of Crime (Money Laundering) and Terrorist Financing Act Sections 185-189 Page 174 190 Section 53.2 of the Act is replaced by the fol- lowing: Limitation 53.2 (1) The Director shall disclose under subsection 53.1(1) information that would directly or indirectly iden- tify any person or entity only if (a) the person or entity is a foreign entity, as defined in section 11.41; (b) the person or entity is one referred to in section 5; or (c) the information is requested for the purpose of carrying out the Minister’s powers and duties under section 11.7. Clarification (2) For greater certainty, if information referred to in subsection (1) that would directly or indirectly identify any person or entity, other than one referred to in para- graph (1)(a) or (b), is contained in a document, whether in written form or in any other form, that is otherwise re- quired to be disclosed under subsection 53.1(1), the Di- rector shall provide the document with that information excluded. 191 The Act is amended by adding the following after section 53.3: Information — assessment of risks 53.31 (1) For the purpose of assessing risks to the in- tegrity of the Canadian financial system that may arise from the grant, revocation, suspension or amendment of an approval, the Minister, officers of the Department of Finance, the Director and the Superintendent of Finan- cial Institutions may disclose to each other, and collect from each other, any information that relates both to the approval and to money laundering activities or terrorist financing activities. Limitation — Director (2) The Director may disclose information under subsec- tion (1) only if it relates to compliance with Part 1 or 1.1. Definition of approval (3) In subsection (1), approval has the same meaning as in section 973 of the Bank Act, section 1016 of the Insur- ance Companies Act and section 527.2 of the Trust and Loan Companies Act. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 3 Measures Related to Money Laundering and to Digital Assets and Other Measures SUBDIVISION A Proceeds of Crime (Money Laundering) and Terrorist Financing Act Sections 190-191 Page 175 192 The Act is amended by adding the following after section 53.31: National security or integrity of financial system 53.32 (1) For the purpose of assisting the Minister in determining whether to grant, revoke, suspend or amend an approval or in exercising the Minister’s powers or per- forming the Minister’s functions and duties under any of sections 32 to 47 and 96 of the Retail Payment Activities Act, the Director may, at the request of the Minister or an officer of the Department of Finance, disclose to the Min- ister or the officer, as the case may be, any information that is under the control of the Centre and that relates to national security or to safeguarding the integrity of Canada’s financial system. Limitation (2) Any information disclosed under subsection (1) may be used by the recipient only for the purpose of deciding whether to grant, revoke, suspend or amend an approval or in the exercise of the powers, or the performance of the functions and duties, referred to in subsection (1). Records (3) The Director shall cause to be kept a record of any re- quest for information referred to in subsection (1) and of any information that is disclosed under that subsection. Definition of approval (4) In this section, approval has the same meaning as in section 973 of the Bank Act, section 1016 of the Insurance Companies Act and section 527.2 of the Trust and Loan Companies Act. 193 (1) The portion of subsection 55(1) of the Act before paragraph (a) is replaced by the follow- ing: Disclosure by Centre prohibited 55 (1) Subject to subsections (3) and (6.1), sections 52, 53.1, 53.31 to 53.5, 55.1, 56.1 and 56.2, subsection 58(1) and sections 58.1, 65 to 65.1 and 68.1 of this Act and to subsection 12(1) of the Privacy Act, the Centre shall not disclose the following: (2) Paragraph 55(7)(a) of the Act is replaced by the following: (a) the name of any person or entity that is involved in the transaction, attempted transaction, importation or exportation or of any person or entity acting on their behalf; 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 3 Measures Related to Money Laundering and to Digital Assets and Other Measures SUBDIVISION A Proceeds of Crime (Money Laundering) and Terrorist Financing Act Sections 192-193 Page 176 (a.1) the date of birth, gender, country of residence and nature of the occupation or business of a person referred to in paragraph (a), any alias that they use or have used and the name and business address of their employer; (a.2) the nature of the principal business of an entity referred to in paragraph (a), the entity’s registration or incorporation number and the jurisdiction and coun- try of issue of that number; (a.3) the following information in respect of a person or entity referred to in paragraph (a): (i) their address, telephone number and electronic mail address, (ii) any identification number assigned to them by a person or entity who made a report referred to in subsection (1), (iii) the Uniform Resource Locator of their website, and (iv) the type of document or other information used to identify or verify their identity, the jurisdic- tion and country of issue of the document and the number of the document or the number associated with the information; (3) Paragraphs 55(7)(c) to (d.1) of the Act are re- placed by the following: (b.1) the purpose of the transaction, attempted trans- action, importation or exportation; (c) in the case of an importation or exportation, the amount and type of currency or monetary instru- ments; (c.1) in the case of a transaction or attempted trans- action, (i) the amount and type of currency, monetary in- struments or virtual currency involved, or (ii) if no currency, monetary instruments or virtual currency is involved, the value of the transaction or attempted transaction or the type and value of the funds or other remittances that are the subject of the transaction or attempted transaction; (c.2) the rate of exchange used in relation to the transaction, attempted transaction, importation or ex- portation; 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 3 Measures Related to Money Laundering and to Digital Assets and Other Measures SUBDIVISION A Proceeds of Crime (Money Laundering) and Terrorist Financing Act Section 193 Page 177 (d) in the case of a transaction or attempted transac- tion, (i) the manner in which the transaction was con- ducted or the attempted transaction was to be con- ducted, (ii) any transaction number, account number, insti- tution number, branch number or similar identify- ing number involved, (iii) the date on which any account involved is opened or closed, as well as its status, (iv) the posting date, (v) any identification number assigned to a person or entity referred to in paragraph (a) as part of the transaction or attempted transaction, and (vi) the bank identification code or business entity identifier of any person or entity referred to in paragraph (a) that is a member of the Society for Worldwide Interbank Financial Telecommunica- tion; (d.1) in the case of a transaction or attempted trans- action involving virtual currency or an electronic funds transfer as defined in the Proceeds of Crime (Money Laundering) and Terrorist Financing Regu- lations, transaction identifiers, including sending and receiving addresses, and any user name of a person or entity referred to in paragraph (a); (4) Subsection 55(7) of the Act is amended by adding the following after paragraph (d.2): (d.3) in the case of a transaction or attempted trans- action that, in whole or in part, is conducted online, the type of device used to conduct the transaction or attempted transaction, as well as the date and time of the transaction or attempted transaction; (d.4) in the case of a transaction, whether it was com- pleted or not; (d.5) in the case of an incomplete transaction or an attempted transaction, the reason it was not complet- ed; (5) Subsection 55(7) of the Act is amended by adding the following after paragraph (h): (h.1) in the case of a transaction or attempted trans- action involving an electronic funds transfer as 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 3 Measures Related to Money Laundering and to Digital Assets and Other Measures SUBDIVISION A Proceeds of Crime (Money Laundering) and Terrorist Financing Act Section 193 Page 178 defined in the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations, any informa- tion in respect of the relationships that exist between any persons or entities connected in any way to the transaction or attempted transaction, including any person or entity that initiates or may benefit from it; 194 (1) Subsection 55.1(1) of the Act is amended by striking out “and” at the end of paragraph (d), by adding “and” at the end of paragraph (e) and by adding the following after paragraph (e): (f) the Office of the Superintendent of Financial Insti- tutions, if the Centre also has reasonable grounds to suspect that the information is relevant to the exercise of the powers or the performance of the duties and functions of the Superintendent under the Office of the Superintendent of Financial Institutions Act. (2) Paragraph 55.1(3)(a) of the Act is replaced by the following: (a) the name of any person or entity that is involved in the transaction, attempted transaction, importation or exportation or of any person or entity acting on their behalf; (a.1) the date of birth, gender, country of residence and nature of the occupation or business of a person referred to in paragraph (a), any alias that they use or have used and the name and business address of their employer; (a.2) the nature of the principal business of an entity referred to in paragraph (a), the entity’s registration or incorporation number and the jurisdiction and coun- try of issue of that number; (a.3) the following information in respect of a person or entity referred to in paragraph (a): (i) their address, telephone number and electronic mail address, (ii) any identification number assigned to them by a person or entity who made a report referred to in subsection 55(1), (iii) the Uniform Resource Locator of their website, and (iv) the type of document or other information used to identify or verify their identity, the jurisdic- tion and country of issue of the document and the number of the document or the number associated with the information; 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 3 Measures Related to Money Laundering and to Digital Assets and Other Measures SUBDIVISION A Proceeds of Crime (Money Laundering) and Terrorist Financing Act Sections 193-194 Page 179 (3) Paragraphs 55.1(3)(c) to (d.1) of the Act are re- placed by the following: (b.1) the purpose of the transaction, attempted trans- action, importation or exportation; (c) in the case of an importation or exportation, the amount and type of currency or monetary instru- ments; (c.1) in the case of a transaction or attempted trans- action, (i) the amount and type of currency, monetary in- struments or virtual currency involved, or (ii) if no currency, monetary instruments or virtual currency is involved, the value of the transaction or attempted transaction or the type and value of the funds or other remittances that are the subject of the transaction or attempted transaction; (c.2) the rate of exchange used in relation to the transaction, attempted transaction, importation or ex- portation; (d) in the case of a transaction or attempted transac- tion, (i) the manner in which the transaction was con- ducted or the attempted transaction was to be con- ducted, (ii) any transaction number, account number, insti- tution number, branch number or similar identify- ing number involved, (iii) the date on which any account involved is opened or closed, as well as its status, (iv) the posting date, (v) any identification number assigned to a person or entity referred to in paragraph (a) as part of the transaction or attempted transaction, and (vi) the bank identification code or business entity identifier of any person or entity referred to in paragraph (a) that is a member of the Society for Worldwide Interbank Financial Telecommunica- tion; (d.1) in the case of a transaction or attempted trans- action involving virtual currency or an electronic funds transfer as defined in the Proceeds of Crime (Money Laundering) and Terrorist Financing Regu- lations, transaction identifiers, including sending and 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 3 Measures Related to Money Laundering and to Digital Assets and Other Measures SUBDIVISION A Proceeds of Crime (Money Laundering) and Terrorist Financing Act Section 194 Page 180 receiving addresses, and any user name of a person or entity referred to in paragraph (a); (4) Subsection 55.1(3) of the Act is amended by adding the following after paragraph (d.2): (d.3) in the case of a transaction or attempted trans- action that, in whole or in part, is conducted online, the type of device used to conduct the transaction or attempted transaction, as well as the date and time of the transaction or attempted transaction; (d.4) in the case of a transaction, whether it was com- pleted or not; (d.5) in the case of an incomplete transaction or an attempted transaction, the reason it was not complet- ed; (5) Subsection 55.1(3) of the Act is amended by adding the following after paragraph (h): (h.1) in the case of a transaction or attempted trans- action involving an electronic funds transfer as de- fined in the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations, any informa- tion in respect of the relationships that exist between any persons or entities connected in any way to the transaction or attempted transaction, including any person or entity that initiates or may benefit from it; 195 (1) Paragraph 56.1(5)(a) of the Act is replaced by the following: (a) the name of any person or entity that is involved in the transaction, attempted transaction, importation or exportation or of any person or entity acting on their behalf; (a.1) the date of birth, gender, country of residence and nature of the occupation or business of a person referred to in paragraph (a), any alias that they use or have used and the name and business address of their employer; (a.2) the nature of the principal business of an entity referred to in paragraph (a), the entity’s registration or incorporation number and the jurisdiction and coun- try of issue of that number; (a.3) the following information in respect of a person or entity referred to in paragraph (a): (i) their address, telephone number and electronic mail address, 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 3 Measures Related to Money Laundering and to Digital Assets and Other Measures SUBDIVISION A Proceeds of Crime (Money Laundering) and Terrorist Financing Act Sections 194-195 Page 181 (ii) any identification number assigned to them by a person or entity who made a report referred to in subsection 55(1), (iii) the Uniform Resource Locator of their website, and (iv) the type of document or other information used to identify or verify their identity, the jurisdic- tion and country of issue of the document and the number of the document or the number associated with the information; (2) Paragraphs 56.1(5)(c) to (d.1) of the Act are re- placed by the following: (b.1) the purpose of the transaction, attempted trans- action, importation or exportation; (c) in the case of an importation or exportation, the amount and type of currency or monetary instru- ments; (c.1) in the case of a transaction or attempted trans- action, (i) the amount and type of currency, monetary in- struments or virtual currency involved, or (ii) if no currency, monetary instruments or virtual currency is involved, the value of the transaction or attempted transaction or the type and value of the funds or other remittances that are the subject of the transaction or attempted transaction; (c.2) the rate of exchange used in relation to the transaction, attempted transaction, importation or ex- portation; (d) in the case of a transaction or attempted transac- tion, (i) the manner in which the transaction was con- ducted or the attempted transaction was to be con- ducted, (ii) any transaction number, account number, insti- tution number, branch number or similar identify- ing number involved, (iii) the date on which any account involved is opened or closed, as well as its status, (iv) the posting date, 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 3 Measures Related to Money Laundering and to Digital Assets and Other Measures SUBDIVISION A Proceeds of Crime (Money Laundering) and Terrorist Financing Act Section 195 Page 182 (v) any identification number assigned to a person or entity referred to in paragraph (a) as part of the transaction or attempted transaction, and (vi) the bank identification code or business entity identifier of any person or entity referred to in paragraph (a) that is a member of the Society for Worldwide Interbank Financial Telecommunica- tion; (d.1) in the case of a transaction or attempted trans- action involving virtual currency or an electronic funds transfer as defined in the Proceeds of Crime (Money Laundering) and Terrorist Financing Regu- lations, transaction identifiers, including sending and receiving addresses, and any user name of a person or entity referred to in paragraph (a); (3) Subsection 56.1(5) of the Act is amended by adding the following after paragraph (d.2): (d.3) in the case of a transaction or attempted trans- action that, in whole or in part, is conducted online, the type of device used to conduct the transaction or attempted transaction, as well as the date and time of the transaction or attempted transaction; (d.4) in the case of a transaction, whether it was com- pleted or not; (d.5) in the case of an incomplete transaction or an attempted transaction, the reason it was not complet- ed; (4) Subsection 56.1(5) of the Act is amended by adding the following after paragraph (h): (h.1) in the case of a transaction or attempted trans- action involving an electronic funds transfer as de- fined in the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations, any informa- tion in respect of the relationships that exist between any persons or entities connected in any way to the transaction or attempted transaction, including any person or entity that initiates or may benefit from it; 196 (1) Paragraph 58(1)(b) of the Act is replaced by the following: (b) conduct research into trends and developments in the area of money laundering, the financing of terror- ist activities and the financing of threats to the securi- ty of Canada and into improved ways of detecting, pre- venting and deterring money laundering, the 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 3 Measures Related to Money Laundering and to Digital Assets and Other Measures SUBDIVISION A Proceeds of Crime (Money Laundering) and Terrorist Financing Act Sections 195-196 Page 183 financing of terrorist activities and the financing of threats to the security of Canada; and (2) Paragraph 58(1)(c) of the Act is amended by striking out “and” at the end of subparagraph (ii.1) and by adding the following after subpara- graph (ii.1): (ii.2) the nature and extent of the financing, inside and outside Canada, of threats to the security of Canada, and (3) Subparagraph 58(1)(c)(iii) of the English ver- sion of the Act is replaced by the following: (iii) measures that have been or might be taken to detect, prevent and deter the money laundering — as well as the financing of terrorist activities and the financing of threats to the security of Canada — inside or outside Canada, and the effectiveness of those measures. 197 Subsection 58.1(2) of the Act is repealed. 198 The Act is amended by adding the following after section 63: Means of telecommunication 63.01 (1) For the purposes of sections 62 and 63, an au- thorized person is considered to have entered a place when accessing it remotely by a means of telecommuni- cation. Limitation — access by means of telecommunication (2) An authorized person who enters remotely, by a means of telecommunication, a place that is not accessi- ble to the public shall do so with the knowledge of the owner or person in charge of the place and shall be re- motely in the place for no longer than the period neces- sary for the purpose referred to in subsection 62(1). 199 Subsection 65(3) of the Act is repealed. 200 Subsection 73.13(1) of the English version of the Act is replaced by the following: Commission of violation 73.13 (1) Every contravention that is designated under paragraph 73.1(1)(a) constitutes a violation and the per- son or entity that commits the violation is liable to a penalty determined in accordance with sections 73.1 and 73.11. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 3 Measures Related to Money Laundering and to Digital Assets and Other Measures SUBDIVISION A Proceeds of Crime (Money Laundering) and Terrorist Financing Act Sections 196-200 Page 184 201 Subsection 73.15(1) of the English version of the Act is replaced by the following: Payment of penalty 73.15 (1) If the person or entity pays the penalty pro- posed in the notice of violation, the person or entity is deemed to have committed the violation and proceedings in respect of it are ended. 202 The Act is amended by adding the following after section 77.1: Threats and retaliation against employees 77.2 (1) Every person or entity that is an employer, that acts on behalf of an employer or that is in a position of authority in respect of an employee commits an offence if the person or entity takes a disciplinary measure against, demotes, terminates or otherwise adversely affects the employment of an employee, or threatens to do so, (a) with the intent to compel the employee to abstain from fulfilling an obligation under this Act; or (b) with the intent to retaliate against the employee because the employee has fulfilled or taken steps to fulfill any such obligation. Punishment (2) Every person or entity that commits an offence under subsection (1) (a) is guilty of an offence punishable on summary con- viction; or (b) is guilty of an indictable offence and liable to im- prisonment for a term of not more than five years. Offence — structured financial transactions 77.3 (1) Every person or entity commits an offence that directly or indirectly undertakes, or attempts to under- take, a structured financial transaction. Structured financial transactions (2) For the purpose of subsection (1), a structured finan- cial transaction is a series of financial transactions that (a) cause a person or entity referred to in section 5 to be in receipt of cash or virtual currency or involve the initiation of an international electronic funds transfer; (b) would, if they occurred as a single financial trans- action, require a person or entity referred to in section 5 to report it to the Centre; and 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 3 Measures Related to Money Laundering and to Digital Assets and Other Measures SUBDIVISION A Proceeds of Crime (Money Laundering) and Terrorist Financing Act Sections 201-202 Page 185 (c) are undertaken with the intent that a person or en- tity referred to in section 5 will not report a financial transaction to the Centre. Punishment (3) Every person or entity that is guilty of an offence un- der subsection (1) is liable (a) on summary conviction, to a fine or imprisonment for a term of not more than two years less a day, or to both; or (b) on conviction on indictment, to a fine or imprison- ment for a term of not more than five years, or to both. 203 The Act is amended by adding the following after section 77.3: Offence — registration 77.4 A person or entity referred to in section 11.1 that knowingly engages in an activity for which it is not regis- tered with the Centre is guilty of an offence and liable (a) on summary conviction, to a fine of not more than $250,000 or to imprisonment for a term of not more than two years less a day, or to both; or (b) on conviction on indictment, to a fine of not more than $500,000 or to imprisonment for a term of not more than five years, or to both. 204 (1) Section 81 of the Act is replaced by the following: Time limitation — five years 81 (1) Proceedings under paragraph 74(1)(a), 74(2)(a), 75(1)(a) or 76(a), subsection 77(1) or (2) or paragraph 77.1(a) or 77.2(2)(a) may be instituted within, but not af- ter, five years after the time when the subject-matter of the proceedings arose. Time limitation — eight years (2) Proceedings under paragraph 77.3(3)(a) may be insti- tuted within, but not after, eight years after the time when the subject-matter of the proceedings arose. (2) Subsection 81(2) of the Act is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 3 Measures Related to Money Laundering and to Digital Assets and Other Measures SUBDIVISION A Proceeds of Crime (Money Laundering) and Terrorist Financing Act Sections 202-204 Page 186 Time limitation — eight years (2) Proceedings under paragraph 77.3(3)(a) or 77.4(2)(a) may be instituted within, but not after, eight years after the time when the subject-matter of the proceedings arose. 205 The headings before section 83 of the Act are replaced by the following: PART 6 Transitional Provisions, Consequential and Conditional Amendments, Repeal and Coming into Force Transitional Provisions 206 The Act is amended by adding the following after section 83: Definitions 83.1 The following definitions apply in this sec- tion and in sections 83.2 and 83.3. agent or mandatary, in relation to a specified per- son or entity, means any agent or mandatary act- ing on the commencement day on behalf of the specified person or entity to provide any of the services referred to in paragraph 5(h). (manda- taire) commencement day means the day on which this section and sections 83.2 and 83.3 come into force. (date de référence) second anniversary means the second anniversary of the commencement day. (deuxième anniver- saire) specified person or entity means a person or entity referred to in paragraph 5(h). (personne ou entité déterminée) Agent or mandatary 83.2 (1) A specified person or entity shall, no lat- er than the second anniversary, (a) verify whether every agent or mandatary is a person or entity referred to in any of para- graphs 11.11(1)(a) to (f); and 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 3 Measures Related to Money Laundering and to Digital Assets and Other Measures SUBDIVISION A Proceeds of Crime (Money Laundering) and Terrorist Financing Act Sections 204-206 Page 187 (b) obtain and review the documents referred to in subsection 9.93(2) in respect of every agent or mandatary. Deeming (2) The verification and review carried out under subsection (1) are deemed to be a verification carried out under section 9.92 and a review car- ried out under subsection 9.93(1), respectively. Documents — registration 83.3 (1) A specified person or entity that is regis- tered with the Centre on the commencement day shall, in the prescribed form and manner, pro- vide the Centre with the documents referred to in paragraph 11.12(1)(b) or (c) no later than the sec- ond anniversary. Translation (2) The obligation to provide a translation set out in subsection 11.12(1.1) applies with respect to those documents. 2021, c. 23 Budget Implementation Act, 2021, No. 1 207 The Budget Implementation Act, 2021, No. 1 is amended by adding the following after section 175: Transitional Provision No ascertainment of expenses in first year 175.1 The Financial Transactions and Reports Analysis Centre of Canada is not required to as- certain, under subsection 51.1(1) of the Proceeds of Crime (Money Laundering and Terrorist Fi- nancing) Act, as enacted by section 165, the total amount of prescribed expenses incurred during the fiscal year in which section 165 comes into force. 208 Subsection 176(2) of the Act is replaced by the following: Order in council (2) Sections 164, 165 and 170 come into force on a day or days to be fixed by order of the Governor in Council. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 3 Measures Related to Money Laundering and to Digital Assets and Other Measures SUBDIVISION A Proceeds of Crime (Money Laundering) and Terrorist Financing Act Sections 206-208 Page 188 Coordinating Amendment 2021, c. 23 209 On the first day on which both subsection 193(1) of this Act is in force and section 185 the Budget Implementation Act, 2021, No. 1 has pro- duced its effects, the portion of subsection 55(1) of the Proceeds of Crime (Money Laundering and Terrorist Financing) Act before paragraph (a) is replaced by the following: Disclosure by Centre prohibited 55 (1) Subject to subsections (3) and (6.1), sections 52, 53.1, 53.31 to 53.6, 55.1, 56.1 and 56.2, subsection 58(1) and sections 58.1, 65 to 65.1 and 68.1 of this Act and to subsection 12(1) of the Privacy Act, the Centre shall not disclose the following: Coming into Force Order in council 210 (1) Section 181 comes into force on a day to be fixed by order of the Governor in Council. Order in council (2) Sections 182, 185, 186, 205 and 206 come into force on a day to be fixed by order of the Gover- nor in Council. Order in council (3) Section 192 comes into force on a day to be fixed by order of the Governor in Council. First anniversary of royal assent (4) Section 203 and subsection 204(2) come into force on the first anniversary of the day on which this Act receives royal assent. SUBDIVISION B R.S., c. C-46 Criminal Code Amendments to the Act 211 Subsection 462.32(4.1) of the French version of the Criminal Code is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 3 Measures Related to Money Laundering and to Digital Assets and Other Measures SUBDIVISION A Proceeds of Crime (Money Laundering) and Terrorist Financing Act Sections 209-211 Page 189 Restitution des produits (4.1) Sous réserve de la présente loi et de toute autre loi fédérale, l’agent de la paix qui a saisi une chose en vertu d’un mandat délivré par un juge en vertu du présent ar- ticle peut, avec le consentement du procureur général donné par écrit, restituer la chose saisie, sur réception d’un reçu à cet effet, à la personne qui a droit à la posses- sion légitime de celle-ci si, à la fois : a) il est convaincu qu’il n’y a aucune contestation quant à la possession légitime de la chose saisie; b) il est convaincu que la détention de la chose saisie n’est pas nécessaire aux fins d’une confiscation; c) la chose saisie est restituée avant le dépôt d’un rap- port auprès du greffier du tribunal en vertu de l’alinéa (4)b). 212 The Act is amended by adding the following after section 462.32: Special warrant — digital assets 462.321 (1) If, on an application of the Attorney Gener- al, a judge is satisfied by information on oath in Form 1, varied to suit the case, that there are reasonable grounds to believe that any digital assets, including virtual curren- cy, may be the subject of an order of forfeiture made un- der subsection 462.37(1) or (2.01) or 462.38(2) in respect of a designated offence alleged to have been committed within the province in which the judge has jurisdiction, the judge may issue a warrant authorizing a person named in the warrant or a peace officer to (a) search for the digital assets by using a computer program, as defined in subsection 342.1(2); and (b) seize — including by taking control of the right to access — the digital assets, as well as any other digital assets found during that search that the person or peace officer believes, on reasonable grounds, may be the subject of such an order of forfeiture. Terms and conditions (2) The warrant shall contain any terms and conditions that the judge considers advisable to ensure that any search or seizure authorized by the warrant is reasonable in the circumstances. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 3 Measures Related to Money Laundering and to Digital Assets and Other Measures SUBDIVISION B Criminal Code Sections 211-212 Page 190 Procedure (3) An application for a warrant under subsection (1) may be made ex parte, shall be made in writing and shall include a statement as to whether any previous applica- tions have been made under subsection (1) with respect to the property that is the subject of the application. Detention and record of property seized (4) Every person who executes a warrant issued by a judge under this section shall (a) detain or cause to be detained any seized property, taking reasonable care to ensure that it is preserved so that it may be dealt with in accordance with the law; (b) as soon as practicable after the execution of the warrant, cause the following to be sent to the usual place of residence of any person from whom the prop- erty is seized if that usual place of residence is in Canada and is known to the person executing the war- rant: (i) a copy of the warrant, and (ii) a notice in Form 5.1, varied to suit the case, set- ting out the address of the court from which a copy of a report on the seized property may be obtained; (c) as soon as practicable after the execution of the warrant but within a period of not more than seven days, prepare a report in Form 5.3, varied to suit the case, identifying the seized property and the manner in which it is being detained, and cause the report to be filed with the clerk of the court; and (d) cause a copy of the report to be provided, on re- quest, to the person from whom the property was seized and to any other person who, in the opinion of the judge, appears to have a valid interest in the seized property. Return (5) Subject to this or any other Act of Parliament, a peace officer or a person acting on their behalf may, with the written consent of the Attorney General, on being issued a receipt for it, cause the seized property to be returned to the person lawfully entitled to its possession, if (a) the peace officer is satisfied that there is no dis- pute as to who is lawfully entitled to possession of the seized property; (b) the peace officer is satisfied that the continued de- tention of the seized property is not required for the purpose of forfeiture; and 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 3 Measures Related to Money Laundering and to Digital Assets and Other Measures SUBDIVISION B Criminal Code Section 212 Page 191 (c) the seized property is returned before a report is filed with the clerk of the court under paragraph (4)(c). Notice (6) Before issuing a warrant under this section in rela- tion to any property, a judge may require notice to be giv- en to and may hear any person who, in the opinion of the judge, appears to have a valid interest in the property un- less the judge is of the opinion that giving such notice be- fore the issuance of the warrant would result in the dis- appearance, dissipation or reduction in value of the prop- erty or otherwise affect the property so that all or a part of it could not be seized under the warrant. Undertakings by Attorney General (7) Before issuing a warrant under this section, a judge shall require the Attorney General to give any undertak- ings that the judge considers appropriate with respect to the payment of damages or costs, or both, in relation to the issuance and execution of the warrant. 213 The portion of subsection 462.331(1) of the Act before paragraph (a) is replaced by the fol- lowing: Management order 462.331 (1) With respect to property seized under sec- tion 462.32 or 462.321 or restrained under section 462.33, other than a controlled substance, within the meaning of the Controlled Drugs and Substances Act, or cannabis, as defined in subsection 2(1) of the Cannabis Act, on application of the Attorney General or of any oth- er person with the written consent of the Attorney Gener- al, if a judge is of the opinion that the circumstances so require, the judge may 214 (1) Subsection 462.34(1) of the Act is replaced by the following: Application for review of special warrants and restraint orders 462.34 (1) Any person who has an interest in property that was seized under a warrant issued under section 462.32 or 462.321 or in respect of which a restraint order was made under subsection 462.33(3) may, at any time, apply to a judge for (a) an order under subsection (4); (b) permission to examine any seized property that does not consist of digital assets; or (c) an order requiring an accounting of any seized dig- ital assets. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 3 Measures Related to Money Laundering and to Digital Assets and Other Measures SUBDIVISION B Criminal Code Sections 212-214 Page 192 (2) The portion of subsection 462.34(6) of the En- glish version of the Act before paragraph (a) is replaced by the following: Conditions to be satisfied (6) An order under paragraph (4)(b) in respect of proper- ty may be made by a judge if the judge is satisfied that the property will no longer be required for the purpose of any investigation or as evidence in any proceeding and (3) The portion of paragraph 462.34(6)(a) of the Act before subparagraph (i) is replaced by the following: (a) that a warrant should not have been issued under section 462.32 or 462.321 or a restraint order under subsection 462.33(3) should not have been made in re- spect of that property, in the case where the applica- tion is made by (4) The portion of paragraph 462.34(6)(a) of the English version of the Act after subparagraph (i) is replaced by the following: (ii) any person who acquired title to or a right of possession of that property from a person referred to in subparagraph (i) under circumstances that give rise to a reasonable inference that the title or right was transferred from that person for the pur- pose of avoiding the forfeiture of the property; or (5) The portion of subsection 462.34(6) of the En- glish version of the Act after paragraph (b) is re- pealed. 215 Section 462.341 of the Act is replaced by the following: Application of property restitution provisions 462.341 Subsection 462.34(2), paragraph 462.34(4)(c) and subsections 462.34(5), (5.1) and (5.2) apply, with any modifications that the circumstances require, to a person who has an interest in money, bank-notes or virtual cur- rency or other digital assets that are seized under this Act, the Controlled Drugs and Substances Act or the Cannabis Act and in respect of which proceedings may be taken under subsection 462.37(1) or (2.01) or 462.38(2). 216 Subsection 462.35(1) of the Act is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 3 Measures Related to Money Laundering and to Digital Assets and Other Measures SUBDIVISION B Criminal Code Sections 214-216 Page 193 Expiration of special warrants and restraint orders 462.35 (1) Subject to this section, if property has been seized under a warrant issued under section 462.32 or 462.321 or a restraint order has been made under section 462.33 in relation to property, the property may be de- tained or the order may continue in force, as the case may be, for a period not exceeding six months from the seizure or the making of the order, as the case may be. 217 Section 462.36 of the Act is replaced by the following: Forwarding to clerk where accused to stand trial 462.36 If a judge issues a warrant under section 462.32 or 462.321 or makes a restraint order under section 462.33 in respect of any property, the clerk of the court shall, when an accused is ordered to stand trial for a des- ignated offence, cause to be forwarded to the clerk of the court to which the accused has been ordered to stand tri- al a copy of the report filed under paragraph 462.32(4)(b) or 462.321(4)(c) or of the restraint order in respect of the property. 218 (1) The portion of subsection 462.43(1) of the Act before paragraph (a) is replaced by the fol- lowing: Residual disposal of property seized or dealt with under special warrants or restraint orders 462.43 (1) If property has been seized under a warrant issued under section 462.32 or 462.321, a restraint order has been made under section 462.33 in relation to any property or a recognizance has been entered into under paragraph 462.34(4)(a) in relation to any property and a judge, on application made to the judge by the Attorney General or any person having an interest in the property or on the judge’s own motion, after notice given to the Attorney General and any other person having an inter- est in the property, is satisfied that the property will no longer be required for the purpose of section 462.37, 462.38 or any other provision of this or any other Act of Parliament respecting forfeiture or for the purpose of any investigation or as evidence in any proceeding, the judge (2) The portion of paragraph 462.43(1)(c) of the English version of the Act before subparagraph (i) is replaced by the following: (c) in the case of property seized under a warrant is- sued under section 462.32 or 462.321 or property un- der the control of a person appointed under paragraph 462.331(1)(a), 219 (1) Paragraph 462.48(1.1)(b) of the Act is re- placed by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 3 Measures Related to Money Laundering and to Digital Assets and Other Measures SUBDIVISION B Criminal Code Sections 216-219 Page 194 (b) an offence against subsection 119(1), section 120, subsection 121(1) or (2), section 122 or subsection 123(1) or (2), or a conspiracy or an attempt to commit, or being an accessory after the fact in relation to, such an offence; (b.1) an offence against subsection 279.01(1), 279.011(1) or 279.02(1) or (2) or a conspiracy or an at- tempt to commit, or being an accessory after the fact in relation to, such an offence; (b.2) an offence against subsection 346(1) or a con- spiracy or an attempt to commit, or being an accessory after the fact in relation to, such an offence; (b.3) an offence against paragraph 380(1)(a) or sub- section 380(2) or a conspiracy or an attempt to com- mit, or being an accessory after the fact in relation to, such an offence; (2) Subsection 462.48(1.1) of the Act is amended by striking out “or” at the end of paragraph (c) and by adding the following after paragraph (d): (e) an offence against subsection 3(1) of the Corrup- tion of Foreign Public Officials Act, or a conspiracy or an attempt to commit, or being an accessory after the fact in relation to, such an offence; or (f) an offence against section 354, 355.2, 355.4 or 462.31 — or a conspiracy or attempt to commit, or be- ing an accessory after the fact in relation to such an of- fence — if the offence is alleged to have been commit- ted in relation to any property, thing or proceeds ob- tained or derived directly or indirectly as a result of (i) the commission in Canada of an offence referred to in any of paragraphs (a) to (e), or (ii) an act or omission anywhere that, if it had oc- curred in Canada, would have constituted an of- fence referred to in any of those paragraphs. 220 Subsection 487.1(1) of the Act is amended by adding the following after paragraph (j): (j.1) a warrant under subsection 462.321(1); Related Amendments R.S., c. P-1 Parliament of Canada Act 221 Paragraph 19.7(3)(b) of the Parliament of Canada Act is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 3 Measures Related to Money Laundering and to Digital Assets and Other Measures SUBDIVISION B Criminal Code Sections 219-221 Page 195 (b) an order for a special warrant under section 462.32 or 462.321, 222 Paragraph 52.7(3)(b) of the Act is replaced by the following: (b) an order for a special warrant under section 462.32 or 462.321, R.S., c. 30 (4th Supp.) Mutual Legal Assistance in Criminal Matters Act 223 Subsection 9.1(3) of the Mutual Legal Assis- tance in Criminal Matters Act is replaced by the following: Enforcement (3) On being filed, the order may be enforced as if it were a warrant issued under subsection 462.32(1) or 462.321(1) of the Criminal Code or an order made under subsection 462.33(3) of that Act. 224 Paragraph 9.3(4)(a) of the Act is replaced by the following: (a) an order for the seizure of proceeds of crime may be enforced as if it were a warrant issued under sub- section 462.32(1) or 462.321(1) of the Criminal Code; 1993, c. 37 Seized Property Management Act 225 Paragraph 4(1)(a) of the Seized Property Management Act is replaced by the following: (a) seized under a warrant issued under section 83.13, 462.32, 462.321 or 487 of the Criminal Code, section 11 of the Controlled Drugs and Substances Act or section 87 of the Cannabis Act on the application of the Attor- ney General and that the Minister is appointed to manage under subsection 83.13(3), 462.331(2) or 490.81(2) of the Criminal Code, subsection 15.1(2) of the Controlled Drugs and Substances Act or subsec- tion 93(2) of the Cannabis Act, as the case may be; 226 Paragraph 13(3)(b) of the Act is replaced by the following: (b) amounts paid as a result of claims arising from un- dertakings given by the Attorney General under 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 3 Measures Related to Money Laundering and to Digital Assets and Other Measures SUBDIVISION B Criminal Code Sections 221-226 Page 196 subsections 462.32(6), 462.321(7) and 462.33(7) of the Criminal Code; 227 Paragraph 16(b) of the Act is replaced by the following: (b) to pay claims arising from undertakings given by the Attorney General under subsections 462.32(6), 462.321(7) and 462.33(7) of the Criminal Code, and Coming into Force 90 days 228 This Subdivision comes into force on the 90th day after the day on which this Act receives royal assent. DIVISION 4 Preferential Tariff Programs for Developing Countries 1997, c. 36 Customs Tariff 229 The heading before section 17 and sections 17 and 18 of the Customs Tariff are replaced by the following: Direct Shipment Shipment to Canada 17 (1) For the purposes of this Act, goods are shipped directly to Canada from another country when the goods are shipped to Canada from that other country in accor- dance with the regulations. Regulations (2) For the purposes of determining whether goods are shipped directly to Canada, the Governor in Council may, on the recommendation of the Minister, make regula- tions respecting the shipping of goods. 230 Paragraph 24(1)(b) of the Act is amended by adding the following after subparagraph (ii): (ii.1) paragraph 36.2(1)(a), 231 Section 27 of the Act is amended by adding the following in alphabetical order: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 3 Measures Related to Money Laundering and to Digital Assets and Other Measures SUBDIVISION B Criminal Code Sections 226-231 Page 197 GPTP refers to the General Preferential Tariff Plus. (TPGP) 232 Section 36 of the Act is replaced by the fol- lowing: Expiry date 36 Sections 33 to 35 cease to have effect on December 31, 2034 or on any earlier date that may be fixed by order of the Governor in Council. General Preferential Tariff Plus Application of GPTP 36.1 (1) Subject to sections 24 and 36.3 and any order made under section 36.2, goods that originate in a coun- try set out in the List of Countries as a beneficiary of the General Preferential Tariff Plus are entitled to the Gener- al Preferential Tariff Plus rates of customs duty. “A” final rate (2) If “A” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the ab- breviation “GPTP” in relation to goods entitled to the General Preferential Tariff Plus, the General Preferential Tariff Plus rate of customs duty that applies to those goods is the final rate. “F” staging for GPTP (3) If “F” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the ab- breviation “GPTP” in relation to goods entitled to the General Preferential Tariff Plus, the General Preferential Tariff Plus rate of customs duty that applies to those goods is the initial rate, reduced as provided in the “F” Staging List. Extension or withdrawal of entitlement 36.2 (1) The Governor in Council may, on the recom- mendation of the Minister, by order, amend the schedule to (a) extend entitlement to the General Preferential Tar- iff Plus to any goods that originate in a country that is a beneficiary of the General Preferential Tariff, if, in the opinion of the Governor in Council, that country conforms to international norms relating to sustain- able development and labour and human rights; (b) withdraw entitlement to the General Preferential Tariff Plus from any goods that originate in a country that is a beneficiary of that Tariff; and 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 4 Preferential Tariff Programs for Developing Countries Customs Tariff Sections 231-232 Page 198 (c) reduce a rate of customs duty set out following the abbreviation “GPTP” in the column entitled “Preferen- tial Tariff” in the List of Tariff Provisions and the “F” Staging List. Contents of order (2) An order made under subsection (1) (a) must specify the date on which the order becomes effective; (b) must, if the order partially extends entitlement to the General Preferential Tariff Plus, indicate the goods to which that Tariff is extended; (c) may exempt the goods from the conditions set out in subsection 24(1) and prescribe any conditions that apply; and (d) must, if the order wholly or partially withdraws entitlement to the General Preferential Tariff Plus, in- dicate the goods to which the General Preferential Tariff applies as a consequence. Application of tariff rate quota 36.3 (1) The Governor in Council may, on the recom- mendation of the Minister, by order, apply a tariff rate quota in respect of goods imported from one or more countries entitled to the General Preferential Tariff Plus for a period specified in the order. Tariff treatment if tariff rate quota exceeded (2) Goods imported in excess of a tariff rate quota ap- plied under an order under subsection (1) are subject to the tariff treatment that would be applicable to those goods if they were not entitled to the General Preferential Tariff Plus. Expiry date 36.4 Sections 36.1 to 36.3 cease to have effect on Decem- ber 31, 2034 or on any earlier date that may be fixed by order of the Governor in Council. 233 Section 40 of the Act is replaced by the fol- lowing: Expiry date 40 Sections 37 to 39 cease to have effect on December 31, 2034 or on any earlier date that may be fixed by order of the Governor in Council. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 4 Preferential Tariff Programs for Developing Countries Customs Tariff Sections 232-233 Page 199 Coming into Force Order in council 234 Section 229 comes into force on a day to be fixed by order of the Governor in Council. DIVISION 5 Removal of Most-Favoured-Nation Tariff Treatment for Belarus and Russia 1997, c. 36 Customs Tariff 235 The List of Countries and Applicable Tariff Treatments set out in the schedule to the Cus- toms Tariff is amended by deleting the symbol “X” in the column under the heading “MFN” op- posite “Belarus” and “Russia” in the column un- der the heading “Country Name”. Coming into Force SOR/2022-209 236 Section 235 comes into force, or is deemed to have come into force, on the day after the day on which the Most-Favoured-Nation Tariff With- drawal Order (2022-2) ceases to have effect. DIVISION 6 Non-application of Sections 27 and 27.1 of the Bank of Canada Act Losses — Government of Canada Bond Purchase Program 237 Despite sections 27 and 27.1 of the Bank of Canada Act, any ascertained surplus of the Bank of Canada during a financial year must be ap- plied to the Bank of Canada’s retained earnings until the earlier of the following events occurs: (a) the Bank of Canada’s retained earnings are equal to zero, and (b) the ascertained surplus applied to the Bank of Canada’s retained earnings is equal to its losses arising from the purchase of Govern- ment of Canada securities as part of the 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 4 Preferential Tariff Programs for Developing Countries Coming into Force Sections 234-237 Page 200 Government of Canada Bond Purchase Pro- gram from April 1, 2020 to April 25, 2022. DIVISION 7 Canada Innovation Corporation Act Enactment of Act Enactment 238 The Canada Innovation Corporation Act is enacted as follows: An Act respecting the Canada Innovation Corporation Alternative Title Alternative title 1 This Act may be cited as the Canada Innovation Cor- poration Act. Interpretation Definitions 2 The following definitions apply in this Act. appropriate Minister has the same meaning as in sec- tion 2 of the Financial Administration Act. (ministre compétent) Board means the board of directors of the Corporation. (conseil) Corporation means the Canada Innovation Corporation continued under section 5. (Corporation) federal institution means (a) a department, as defined in section 2 of the Fi- nancial Administration Act; or (b) a Crown corporation, as defined in subsection 83(1) of that Act. (institution fédérale) Minister means the Minister of Industry or, if another federal minister is designated under section 4, that min- ister. (ministre) 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 6 Non-application of Sections 27 and 27.1 of the Bank of Canada Act Sections 237-238 Page 201 Inconsistency 3 In the event of any inconsistency between this Act and Part X of the Financial Administration Act, this Act pre- vails to the extent of the inconsistency. Designation of Minister Order in council 4 The Governor in Council may, by order, designate any federal minister to be the Minister referred to in this Act. Continuation and Status Continuation 5 The Canada Innovation Corporation, incorporated un- der the Canada Business Corporations Act, is continued as a corporation under this Act. Head office 6 The head office of the Corporation is to be at a place in Canada that is designated by the Governor in Council. Not Crown agent 7 The Corporation is not an agent of His Majesty in right of Canada, except when (a) providing advice to a federal institution at the re- quest of the appropriate Minister; (b) developing, delivering or administering programs under paragraph 10(e); (c) negotiating arrangements or agreements or carry- ing out any activities related to such arrangements or agreements under paragraph 10(f); or (d) carrying out any activity conducive to the carrying out of its purpose that the Governor in Council may, by order, specify. Capacity 8 In carrying out its purpose, the Corporation has the ca- pacity, rights, powers and privileges of a natural person. Purpose and Functions Purpose 9 The purpose of the Corporation is to maximize busi- ness investment in research and development across all 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 7 Canada Innovation Corporation Act Enactment of Act Section 238 Page 202 sectors of the economy and in all regions of Canada to promote innovation-driven economic growth. Functions 10 In carrying out its purpose, the Corporation may (a) act as a centre of expertise on national and inter- national industrial and technology trends; (b) promote the ownership and retention of intangible assets in Canada; (c) monitor, analyze and disseminate information on research and development in Canada, including for the purposes of supporting the evaluation of programs related to its purpose and improving those programs; (d) provide financial support, including in the form of grants, or advice; (e) at the request of the appropriate Minister, made after consultation by the appropriate Minister with the Minister, develop, deliver or administer a program on behalf of a federal institution to the extent that the Corporation is able to recover the incurred costs that are specified by the Board; (f) at the request of the appropriate Minister, made after consultation by the appropriate Minister with the Minister, negotiate arrangements or agreements with foreign entities on behalf of a federal institution or carry out any activities related to such arrangements or agreements on behalf of a federal institution; and (g) carry out any other function conducive to the car- rying out of its purpose that the Governor in Council may, by order, specify. Board, Chief Executive Officer and Employees Composition of Board 11 The Board consists of a chairperson and not fewer than four and not more than 11 other directors. Appointment of directors 12 (1) Each director, other than the chairperson, is to be appointed by the Minister, after consultation by the Min- ister with the Minister of Finance and the Board and with the approval of the Governor in Council, for a term of not more than four years that will ensure, to the extent 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 7 Canada Innovation Corporation Act Enactment of Act Section 238 Page 203 possible, the expiry in any one year of the terms of office of not more than one half of the directors. Federal public administration (2) No more than two of the directors appointed under subsection (1) may be appointed from among persons who occupy a position in the federal public administra- tion. Appointment of chairperson (3) The chairperson is to be appointed by the Minister, after consultation by the Minister with the Minister of Fi- nance and the Board and with the approval of the Gover- nor in Council, for a term that the Governor in Council considers appropriate. Ineligibility — chairperson (4) A person is not eligible to be appointed or to continue as the chairperson if they occupy a position in the federal public administration. Continuation in office (5) The chairperson may, with the authorization of the Board, continue in office after the expiration of their term of office until the earlier of (a) the 180th day after the day on which their term of office ends, and (b) the day on which they are reappointed or their successor is appointed. Absence or incapacity — chairperson (6) If the chairperson is absent or unable to act or the of- fice of chairperson is vacant, the Board may authorize one of the other directors to act as chairperson, but that person is not authorized to act as chairperson for a peri- od of more than 180 days without the approval of the Governor in Council. Removal from office (7) The chairperson and each of the other directors holds office during pleasure and may be removed by the Minis- ter after consultation by the Minister with the Minister of Finance and the Board and with the approval of the Gov- ernor in Council. Appointment of chief executive officer 13 (1) The chief executive officer of the Corporation is to be appointed by the Minister, after consultation by the Minister with the Minister of Finance, from among per- sons nominated by the Board, for a term that the Minis- ter considers appropriate. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 7 Canada Innovation Corporation Act Enactment of Act Section 238 Page 204 No overlapping offices (2) A person is not entitled to hold the offices of director and chief executive officer at the same time. Reappointment (3) The chief executive officer is eligible to be reappoint- ed at the end of their term of office. Continuation in office (4) The chief executive officer may, with the authoriza- tion of the Board, continue in office after the expiration of their term of office until the earlier of (a) the 180th day after the day on which their term of office ends, and (b) the day on which they are reappointed or their successor is appointed. Absence or incapacity — chief executive officer (5) If the chief executive officer is absent or unable to act or the office of chief executive officer is vacant, the Board may authorize an officer or employee of the Corporation to act as chief executive officer, but that person is not au- thorized to act as chief executive officer for a period of more than 180 days unless the Minister, after consulta- tion by that Minister with the Minister of Finance, ap- proves a longer period. Removal from office (6) The chief executive officer holds office during plea- sure and may be removed by the Minister after consulta- tion by the Minister with the Minister of Finance and the Board. Attendance of chief executive officer at meetings 14 Subject to any by-law of the Board, the chief execu- tive officer may attend meetings of the Board or any com- mittee of the Board. Accident compensation 15 The directors, chief executive officer and employees of the Corporation are deemed to be employees for the purposes of the Government Employees Compensation Act and to be employed in the federal public administra- tion for the purposes of any regulations made under sec- tion 9 of the Aeronautics Act. Guidelines 16 (1) The Board must establish guidelines respecting conflicts of interest and confidential information. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 7 Canada Innovation Corporation Act Enactment of Act Section 238 Page 205 Copy to Minister (2) The Board must, after establishing or modifying the guidelines, provide a copy of the guidelines to the Minis- ter. Modifications (3) The Minister may, after consulting the Board, modify the guidelines respecting conflicts of interest as they ap- ply to the chief executive officer. Sections 116 and 117 of Financial Administration Act (4) The guidelines respecting conflicts of interest must be consistent with sections 116 and 117 of the Financial Administration Act. Evaluation committee 17 (1) The Board must establish an evaluation commit- tee that is responsible for advising the Corporation on matters relating to the provision of financial support by the Corporation. Directors not eligible (2) Directors are not eligible to be members of the com- mittee. By-laws (3) The Board may make by-laws respecting the commit- tee, including respecting the matters relating to the pro- vision of financial support on which it is to advise the Corporation and respecting the expertise of its members. Miscellaneous Provisions Restriction on directives 18 A directive must not be given to the Corporation un- der subsection 89(1) of the Financial Administration Act requiring the Corporation to provide financial support to a specific entity or a group of specific entities or requiring the Corporation to provide advice to a specific entity or a group of specific entities. Disclosure of information to federal institutions 19 (1) The Corporation may disclose any information in its possession to a federal institution if that disclosure is related to the carrying out of the Corporation’s purpose. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 7 Canada Innovation Corporation Act Enactment of Act Section 238 Page 206 Disclosure of information to Corporation (2) A federal institution may disclose any information in its possession to the Corporation if that disclosure is re- lated to the carrying out of the Corporation’s purpose. Payments out of Consolidated Revenue Fund 20 (1) Subject to subsection (2), the Minister must pay out of the Consolidated Revenue Fund the following amounts, or any greater amounts specified in an appro- priation Act, to the Corporation: (a) for the financial year ending March 31, 2024, $198,000,000; (b) for the financial year ending March 31, 2025, $775,000,000; (c) for the financial year ending March 31, 2026, $800,000,000; (d) for the financial year ending March 31, 2027, $800,000,000; and (e) for each subsequent financial year, $525,000,000. Withholding of payment (2) The Minister may, with the approval of the Minister of Finance, withhold all or part of the payment for a fi- nancial year. Consultation with Board (3) The Minister must consult the Board before with- holding all or part of a payment. Report (4) If the Minister withholds a payment, the Minister must cause a report setting out the reasons for withhold- ing the payment to be tabled in each House of Parliament on any of the first 15 days on which that House is sitting after the payment has been withheld. Payments to Receiver General 21 (1) Within three months after the end of each finan- cial year, the Corporation must pay to the Receiver Gen- eral the money of the Corporation that was in excess of $66,000,000 at the end of that financial year. Non-application (2) Sections 130 to 130.2 of the Financial Administration Act do not apply in respect of the Corporation. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 7 Canada Innovation Corporation Act Enactment of Act Section 238 Page 207 Financial year 22 The financial year of the Corporation is the period of 12 months beginning on April 1 and ending on the next March 31. Quarterly financial reports 23 The following information must be included in the quarterly financial report that the Corporation is re- quired to cause to be prepared under subsection 131.1(1) of the Financial Administration Act: (a) the name of each entity with which the Corpora- tion entered into an agreement or arrangement in that quarter to provide financial support; and (b) the amount of the financial support provided for in each agreement or arrangement. Annual reports 24 The following information must be included in the annual report that the Corporation is required to submit under subsection 150(1) of the Financial Administration Act: (a) information relating to each program that it devel- oped, delivered or administered under paragraph 10(e) in the financial year; (b) the name of each entity to which it provided finan- cial support of $100,000 or more in that year and the amount of that financial support; and (c) the number of entities to which it provided finan- cial support of less than $100,000 in that year and the total amount of the financial support provided to those entities. Transitional Provisions Definitions 25 The following definitions apply in sections 26 to 35. Director has the same meaning as in subsection 2(1) of the Canada Business Corporations Act. (directeur) former Corporation means the Canada Innovation Cor- poration incorporated under the Canada Business Cor- porations Act. (ancienne Corporation) new Corporation means the Canada Innovation Corpo- ration continued under section 5. (nouvelle Corpora- tion) 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 7 Canada Innovation Corporation Act Enactment of Act Section 238 Page 208 Copy of order provided to Director 26 (1) The Minister must provide the Director with a copy of the order made under subsection 241(1) of the Budget Implementation Act, 2023, No. 1. Deeming (2) For the purposes of the Canada Business Corpora- tions Act, the copy of the order is deemed to be a notice referred to in subsection 188(7) of that Act, satisfactory to the Director, that the former Corporation has been con- tinued under one of the Acts referred to in subsection 188(2) of that Act. Transfer of shares 27 All the shares of the former Corporation are trans- ferred to the Minister to hold in trust for His Majesty in Right of Canada. Chairperson’s interim powers 28 During the period beginning on the day on which this section comes into force and ending on the day on which at least four other directors are in office, the chairperson comprises the Board and may exercise all the powers of the Board. Rights preserved 29 For greater certainty, (a) subject to subsections 12(7) and 13(6), the chair- person, directors and chief executive officer of the for- mer Corporation who hold office immediately before the day on which this section comes into force contin- ue to hold office as the chairperson, directors and chief executive officer, respectively, of the new Corpo- ration for the remainder of the term for which they were appointed; (b) the property and rights of the former Corporation continue to be the property and rights of the new Cor- poration; (c) the new Corporation continues to be liable for the obligations of the former Corporation; (d) unless the context otherwise requires, every refer- ence to the former Corporation in any contract, instru- ment or act or other document executed or signed by the former Corporation is to be read as a reference to the new Corporation; (e) an existing cause of action, claim or liability to prosecution relating to the former Corporation is un- affected; 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 7 Canada Innovation Corporation Act Enactment of Act Section 238 Page 209 (f) a civil, criminal or administrative action or pro- ceeding pending by or against the former Corporation may be continued by or against the new Corporation; and (g) a conviction against, or ruling, order or judgment in favour of or against, the former Corporation may be enforced by or against the new Corporation. Industrial Research Assistance Program 30 (1) Any person who, immediately before the day on which this section comes into force, occupied a position within the Industrial Research Assistance Program of the National Research Council of Canada, beginning on that day, occupies their position within the new Corporation. No change in status (2) Nothing in subsection (1) or in any regulations made under section 35 is to be construed as affecting the status of such a person except that, beginning on the day on which this section comes into force, the person occupies their position within the new Corporation. Managerial or confidential position (3) For greater certainty, a person’s status includes whether or not they occupy a managerial or confidential position. Transfer of appropriations 31 If this section comes into force before March 31, 2024, any money that is appropriated by an Act of Parliament, for the financial year in which this section comes into force, to defray any expenditure of the National Research Council of Canada that is related to the Industrial Re- search Assistance Program and that, on the day on which this section comes into force, is unexpended is deemed, on that day, to be an amount appropriated to defray any expenditure of the new Corporation. The Minister must pay that amount to the new Corporation. Transfer of rights, property and obligations 32 All rights and property of the National Research Council of Canada that are related to the Industrial Re- search Assistance Program and of His Majesty in right of Canada that are under the administration and control of the National Research Council of Canada and are related to the Industrial Research Assistance Program and all obligations of the National Research Council of Canada that are related to the Industrial Research Assistance Program are transferred to the new Corporation. Transfer of powers, duties and functions 33 If a power, duty or function is, under any contract, lease, licence or other document, vested in or exercisable 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 7 Canada Innovation Corporation Act Enactment of Act Section 238 Page 210 by a person who, immediately before the day on which this section comes into force, occupied a position within the Industrial Research Assistance Program of the Na- tional Research Council of Canada, the power, duty or function is vested in and is to be exercised by the new Corporation. Information about Industrial Research Assistance Program 34 The National Research Council of Canada may dis- close any information that is under its control and that is related to the Industrial Research Assistance Program to the new Corporation. Regulations 35 The Governor in Council may make regulations re- specting the transfer of the Industrial Research Assis- tance Program of the National Research Council of Canada to the new Corporation, including regulations re- specting the manner in which rights, property and obli- gations are to be transferred under section 32 and any re- strictions on those transfers. Consequential and Related Amendments R.S., c. F-11 Financial Administration Act 239 Part I of Schedule III to the Financial Ad- ministration Act is amended by adding the fol- lowing in alphabetical order: Canada Innovation Corporation Corporation d’innovation du Canada R.S., c. P-36 Public Service Superannuation Act 240 Part I of Schedule I to the Public Service Su- perannuation Act is amended by adding the fol- lowing in alphabetical order: Chief executive officer and employees of the Canada Innovation Corporation Premier dirigeant et personnel de la Corporation d’innovation du Canada Coming into Force Order in council 241 (1) Sections 1 to 29, 34 and 35 of the Canada Innovation Corporation Act, as enacted by sec- tion 238 of this Act, and sections 239 and 240 of 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 7 Canada Innovation Corporation Act Enactment of Act Sections 238-241 Page 211 this Act come into force on a day to be fixed by order of the Governor in Council. Order in council (2) Sections 30 to 33 of the Canada Innovation Corporation Act, as enacted by section 238 of this Act, come into force on a day to be fixed by order of the Governor in Council. DIVISION 8 R.S., c. F-8; 1995, c. 17, s. 45 Federal-Provincial Fiscal Arrangements Act (Canada Health Transfer) 242 The Federal-Provincial Fiscal Arrange- ments Act is amended by adding the following af- ter section 24.73: Total payment of $2 billion 24.74 The Minister may pay an additional cash payment equal to (a) for Ontario, $776,262,000; (b) for Quebec, $447,067,000; (c) for Nova Scotia, $52,306,000; (d) for New Brunswick, $41,674,000; (e) for Manitoba, $72,450,000; (f) for British Columbia, $273,238,000; (g) for Prince Edward Island, $8,759,000; (h) for Saskatchewan, $61,385,000; (i) for Alberta, $233,120,000; (j) for Newfoundland and Labrador, $27,051,000; (k) for Yukon, $2,252,000; (l) for the Northwest Territories, $2,348,000; and (m) for Nunavut, $2,088,000. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 7 Canada Innovation Corporation Act Coming into Force Sections 241-242 Page 212 Coordinating Amendments — Bill C-46 242.1 (1) Subsections (2) to (4) apply if Bill C-46, introduced in the 1st Session of the 44th Parlia- ment and entitled the Cost of Living Relief Act, No. 3 (in this section referred to as the “other Act”), receives royal assent. (2) If section 2 of the other Act comes into force before section 242 of this Act, then that section 242 is deemed never to have come into force and is repealed. (3) If section 242 of this Act comes into force be- fore section 2 of the other Act, that section 2 is deemed never to have come into force and is re- pealed. (4) If section 2 of the other Act comes into force on the same day as section 242 of this Act, then that section 242 is deemed never to have come in- to force and is repealed. DIVISION 9 R.S., c. F-8; 1995, c. 17, s. 45(1) Federal-Provincial Fiscal Arrangements Act (Equalization and Territorial Financing Renewal and Other Amendments) Amendments to the Act 243 Section 3 of the Federal-Provincial Fiscal Arrangements Act is replaced by the following: Fiscal equalization payment 3 Subject to the other provisions of this Act, there may be paid to a province a fiscal equalization payment not exceeding the amounts determined under this Part for each fiscal year in the period beginning on April 1, 2007 and ending on March 31, 2029. 244 (1) The definition revenue to be equalized in subsection 3.5(1) of the Act is replaced by the fol- lowing: revenue to be equalized means, in respect of a revenue source for a province for a fiscal year, 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 8 Federal-Provincial Fiscal Arrangements Act (Canada Health Transfer) Sections 242.1-244 Page 213 (a) the revenue, as determined by the Minister, de- rived by that province for that fiscal year from that revenue source; and (b) in the case of a revenue source other than a rev- enue source referred to in paragraph (e) of the defini- tion revenue source, the product obtained by multi- plying the sum of miscellaneous revenues derived by that province for the fiscal year by the quotient ob- tained by dividing the sum of revenues from that rev- enue source derived by all provinces for that fiscal year by the sum of all revenues derived by all provinces from the revenue sources referred to in paragraphs (a) to (d) of the definition revenue source for that fiscal year. It may be defined more particularly by the regulations. (revenu sujet à péréquation) (2) Paragraph (d) of the definition revenue source in subsection 3.5(1) of the Act is replaced by the following: (d) revenues derived from property taxes; and (3) Subsection 3.5(3) of the Act is replaced by the following: Municipal revenues (3) For the purposes of this Part, the revenue derived by each municipality, board, commission or other local au- thority in a province that has power to derive those rev- enues for the financial year of each such local authority ending in that fiscal year is both deemed to be revenue derived by that province and (a) in the case of local government property taxes, property taxes within the meaning of paragraph (d) of the definition revenue source in subsection (1); and (b) in the case of other miscellaneous local govern- ment taxes and revenues, included in miscellaneous revenues for the purpose of the definition revenue to be equalized in subsection (1). 245 (1) The definition revenue to be equalized in subsection 4(1) of the Act is replaced by the fol- lowing: revenue to be equalized, in respect of a revenue source for a territory for a fiscal year, means (a) the revenue, as determined by the Minister, de- rived by that territory for that fiscal year from that revenue source; and 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 9 Federal-Provincial Fiscal Arrangements Act (Equalization and Territorial Financing Renewal and Other Amendments) Amendments to the Act Sections 244-245 Page 214 (b) in the case of a revenue source referred to in para- graphs (a), (b), (h) and (i) of the definition revenue source, the product obtained by multiplying the sum of miscellaneous revenues derived by that territory for the fiscal year by the quotient obtained by dividing the sum of revenues from that revenue source derived by all territories for that fiscal year by the sum of all rev- enues derived by all territories from the revenue sources referred to in paragraphs (a), (b), (h) and (i) of the definition revenue source for the fiscal year. It may be defined more particularly by the regulations. (revenu sujet à péréquation) (2) Paragraph (h) of the definition revenue source in subsection 4(1) of the Act is replaced by the fol- lowing: (h) revenues derived from property taxes; and 246 Subsection 4.1(1) of the Act is replaced by the following: Territorial formula financing payments 4.1 (1) Subject to the other provisions of this Act, there may be paid to a territory a territorial formula financing payment not exceeding the amounts determined under this Part for each fiscal year in the period beginning on April 1, 2014 and ending on March 31, 2029. 247 Subsection 6(2) of the Act is replaced by the following: Adjustment (2) For the purposes of determining the amount under subsection (1), the Minister may adjust, in the prescribed manner, the natural resource revenue and the non-natu- ral resource revenue of a province for the fiscal year (a) to offset the amount, as determined by the Minis- ter, of any change in either of those revenues for the fiscal year resulting from changes made by the province in the rates or structure of provincial taxes or of other means of raising the revenue of the province from the rates or structures in effect in the preceding fiscal year; and (b) to account for the absence of indexation in a provincial personal income tax system. 248 Section 40 of the Act is amended by adding the following after paragraph (a.4): 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 9 Federal-Provincial Fiscal Arrangements Act (Equalization and Territorial Financing Renewal and Other Amendments) Amendments to the Act Sections 245-248 Page 215 (a.5) providing for the provincial and territorial rev- enues that constitute miscellaneous revenues for the purposes of the definition revenue to be equalized in subsections 3.5(1) and 4(1); (a.6) respecting what constitutes the absence of in- dexation in a provincial personal income tax system for the purpose of paragraph 6(2)(b); 248.1 The Act is amended by adding the follow- ing after section 41: Publication Publication of amounts authorized 42 The Minister shall publish the details of all amounts authorized to be paid under this Act on the website of the Department of Finance as soon as feasible after the pay- ment of such amounts. Application Sections 243 to 246 249 The provisions of the Federal-Provincial Fiscal Arrangements Act enacted by sections 243 to 246 of this Act apply to fiscal years that begin after March 31, 2024. Section 247 250 The provisions of the Federal-Provincial Fiscal Arrangements Act enacted by section 247 of this Act apply to fiscal years that begin after March 31, 2021. Transitional Provision Continuation 251 The provisions of Parts I and I.1 of the Fed- eral-Provincial Fiscal Arrangements Act — and of any regulations made under that Act — as they read immediately before the day on which this Act receives royal assent continue to apply to fis- cal years that end before April 1, 2024. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 9 Federal-Provincial Fiscal Arrangements Act (Equalization and Territorial Financing Renewal and Other Amendments) Amendments to the Act Sections 248-251 Page 216 DIVISION 10 Economic Sanctions 1992, c. 17 Special Economic Measures Act 252 The heading before section 2 of the French version of the Special Economic Measures Act is replaced by the following: Définitions et interprétation 253 The Act is amended by adding the following after section 2: Deemed ownership 2.1 (1) If a person controls an entity other than a for- eign state, any property that is owned — or that is held or controlled, directly or indirectly — by the entity is deemed to be owned by that person. Criteria (2) For the purposes of subsection (1), a person controls an entity, directly or indirectly, if any of the following cri- teria are met: (a) the person holds, directly or indirectly, 50% or more of the shares or ownership interests in the entity or 50% or more of the voting rights in the entity; (b) the person is able, directly or indirectly, to change the composition or powers of the entity’s board of di- rectors; or (c) it is reasonable to conclude, having regard to all the circumstances, that the person is able, directly or indirectly and through any means, to direct the enti- ty’s activities. 254 (1) Paragraph 4(1)(b) of the Act is replaced by the following: (b) by order, cause to be seized or restrained in the manner set out in the order any property situated in Canada that is owned — or that is held or controlled, directly or indirectly — by a foreign state or a person who is identified in an order or regulation made under paragraph (1)(a). (2) Paragraphs 4(2)(a) to (c) of the Act are re- placed by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 10 Economic Sanctions Sections 252-254 Page 217 (a) any dealing by any person in Canada or Canadian outside Canada in any property, wherever situated, that is owned — or that is held or controlled, directly or indirectly — by that foreign state, any person in that foreign state, a national of that foreign state who does not ordinarily reside in Canada or a person outside Canada who is not Canadian; (b) the exportation, sale, supply or shipment by any person in Canada or Canadian outside Canada of any goods wherever situated to that foreign state, any per- son in that foreign state or a person outside Canada who is not Canadian, or any other dealing by any per- son in Canada or Canadian outside Canada in any goods wherever situated destined for that foreign state, any person in that foreign state or a person out- side Canada who is not Canadian; (c) the transfer, provision or communication by any person in Canada or Canadian outside Canada of any technical data to that foreign state, any person in that foreign state or a person outside Canada who is not Canadian; (3) Paragraph 4(2)(e) of the Act is replaced by the following: (e) the provision or acquisition by any person in Canada or Canadian outside Canada of financial ser- vices or any other services to, from or for the benefit of or on the direction or order of that foreign state, any person in that foreign state or a person outside Canada who is not Canadian; (e.1) the transfer or provision by any person in Canada or Canadian outside Canada of property other than goods to that foreign state, any person in that foreign state, a national of that foreign state who does not ordinarily reside in Canada or a person outside Canada who is not Canadian; (4) Paragraphs 4(2)(h) and (i) of the Act are re- placed by the following: (h) the docking in or passage through Canada by ships registered in that foreign state or used, leased or char- tered, in whole or in part, by or on behalf of or for the benefit of that foreign state, any person in that foreign state or a person outside Canada who is not Canadian; and (i) the landing in or flight over Canada by aircraft reg- istered in that foreign state or used, leased or char- tered, in whole or in part, by or on behalf of or for the 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 10 Economic Sanctions Special Economic Measures Act Section 254 Page 218 benefit of that foreign state, any person in that foreign state or a person outside Canada who is not Canadian. 255 Paragraph 5.2(a) of the Act is replaced by the following: (a) the person is the foreign state identified in the or- der or a person identified in the order; or 256 Subsection 5.4(4) of the Act is replaced by the following: Application by person (4) Any person — other than a person referred to in paragraph 5.2(a) — who claims an interest in or right to property that is forfeited to Her Majesty under subsec- tion (1) may, within 30 days after the day on which the property is forfeited, apply in writing to a judge for an or- der declaring that their interest or right is not affected by the forfeiture, declaring the nature and extent of the in- terest or right and directing the Minister to pay to the person an amount equal to the value of their interest or right. 257 Section 6.1 of the Act is amended by adding the following after paragraph (d): (d.1) the Minister of Transport; (d.2) the Minister of National Revenue; (d.3) the Minister of Justice and Attorney General of Canada; (d.4) the Minister of Citizenship and Immigration; 258 The Act is amended by adding the following after section 6.2: FINTRAC 6.21 The Minister may disclose to the Financial Trans- actions and Reports Analysis Centre of Canada any infor- mation that is relevant to the making, administration or enforcement of an order or regulation referred to in sub- section 4(1). 2000, c. 17; 2001, c. 41, s. 48 Proceeds of Crime (Money Laundering) and Terrorist Financing Act 259 Subsection 55(3) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act is amended by striking out “and” at the end 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 10 Economic Sanctions Special Economic Measures Act Sections 254-259 Page 219 of paragraph (f.1) and by adding the following af- ter paragraph (g): (h) the Minister of Foreign Affairs or a Minister desig- nated under subsection 6(2) of the Special Economic Measures Act, if the Centre also determines that the information is relevant to the making, administration or enforcement of an order or regulation referred to in subsection 4(1) of that Act; and (i) the Minister of Foreign Affairs or a Minister desig- nated under subsection 2.1(2) of the Justice for Vic- tims of Corrupt Foreign Officials Act (Sergei Magnit- sky Law), if the Centre also determines that the infor- mation is relevant to the making, administration or enforcement of an order or regulation referred to in subsection 4(1) of that Act. 2017, c. 21 Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law) 260 The heading before section 2 of the French version of the Justice for Victims of Corrupt For- eign Officials Act (Sergei Magnitsky Law) is re- placed by the following: Définitions et interprétation 261 The Act is amended by adding the following after section 2: Deemed ownership 2.01 (1) If a foreign national controls an entity other than a foreign state, any property that is owned — or that is held or controlled, directly or indirectly — by the entity is deemed to be owned by that foreign national. Criteria (2) For the purposes of subsection (1), a foreign national controls an entity, directly or indirectly, if any of the fol- lowing criteria are met: (a) the foreign national holds, directly or indirectly, 50% or more of the shares or ownership interests in the entity or 50% or more of the voting rights in the entity; (b) the foreign national is able, directly or indirectly, to change the composition or powers of the entity’s board of directors; or 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 10 Economic Sanctions Proceeds of Crime (Money Laundering) and Terrorist Financing Act Sections 259-261 Page 220 (c) it is reasonable to conclude, having regard to all the circumstances, that the foreign national is able, di- rectly or indirectly and through any means, to direct the entity’s activities. Minister 262 Paragraph 4(1)(b) of the Act is replaced by the following: (b) by order, cause to be seized or restrained in the manner set out in the order any property situated in Canada that is owned — or that is held or controlled, directly or indirectly — by a foreign national who is identified in an order or regulation made under para- graph (1)(a). 263 Section 7.1 of the Act is amended by adding the following after paragraph (d): (d.1) the Minister of Transport; (d.2) the Minister of National Revenue; (d.3) the Minister of Justice and Attorney General of Canada; (d.4) the Minister of Citizenship and Immigration; 264 The Act is amended by adding the following after section 7.2: FINTRAC 7.21 The Minister may disclose to the Financial Trans- actions and Reports Analysis Centre of Canada any infor- mation that is relevant to the making, administration or enforcement of an order or regulation referred to in sub- section 4(1). DIVISION 11 R.S., c. P-24 Privileges and Immunities (North Atlantic Treaty Organisation) Act 265 The long title of the Privileges and Immuni- ties (North Atlantic Treaty Organisation) Act is replaced by the following: An Act to provide for privileges and immunities in re- spect of the North Atlantic Treaty Organisation and 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 10 Economic Sanctions Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law) Sections 261-265 Page 221 any international military Headquarters or organisa- tion established under that Treaty 266 Sections 2 and 3 of the Act are replaced by the following: Definitions 2 The following definitions apply in this Act. Ottawa Agreement means the Agreement on the status of the North Atlantic Treaty Organisation, National Rep- resentatives and International Staff, done at Ottawa on September 20, 1951. (Convention d’Ottawa) Paris Protocol means the Protocol on the Status of In- ternational Military Headquarters set up pursuant to the North Atlantic Treaty, done at Paris on August 28, 1952. (Protocole de Paris) Approval 3 The Ottawa Agreement set out in Schedule 1 and the Paris Protocol set out in Schedule 2 are approved. Power to make orders 4 The Governor in Council may make any orders that the Governor in Council considers necessary for the purpose of carrying out the obligations and exercising the rights of Canada under the Ottawa Agreement, the Paris Proto- col and any agreement under Article 25 of that Agree- ment or paragraph 2 of Article 16 of that Protocol. Orders — Headquarters or organization 5 The Governor in Council may make any orders that the Governor in Council considers necessary to enable any international military Headquarters or organization es- tablished under the North Atlantic Treaty to exercise its powers or perform its functions in Canada, including any orders that impose obligations and confer rights, privi- leges and immunities comparable to those under the Paris Protocol. Certificate 6 A certificate issued by or under the authority of the Minister of Foreign Affairs and containing any statement of fact relevant to any of the following questions is ad- missible in evidence in any action or proceeding as proof of the fact stated in the certificate without proof of the signature or official character of the person appearing to have signed the certificate: (a) whether the North Atlantic Treaty Organization, any of its subsidiary bodies or any international 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 11 Privileges and Immunities (North Atlantic Treaty Organisation) Act Sections 265-266 Page 222 military Headquarters or organization is the subject of an order made under section 4 or 5; (b) whether the North Atlantic Treaty Organization, any of its subsidiary bodies or any international mili- tary Headquarters or organization has privileges or immunities provided by an order made under section 4 or 5; (c) whether any person has privileges or immunities provided by an order made under section 4 or 5. 267 The schedule to the Act is numbered as Schedule 1. 268 Schedule 1 to the Act is amended by replac- ing the reference after the heading “SCHEDULE 1” with the following: (Section 3) 269 The Act is amended by adding, after Sched- ule 1, the Schedule 2 set out in the schedule to this Act. DIVISION 12 2017, c. 20, s. 451 Service Fees Act Amendments to the Act 270 (1) Paragraph (e) of the definition fee in sub- section 2(1) of the Service Fees Act is replaced by the following: (e) the provision of a regulatory process. (frais) (2) Section 2 of the Act is amended by adding the following after subsection (2): Non-application of Act (3) This Act does not apply to a fee if (a) the fee is fixed under the Access to Information Act or the Privacy Act; or (b) the fee is paid only by or on behalf of a minister or federal entity. 271 (1) Section 3 of the Act is replaced by the fol- lowing: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 11 Privileges and Immunities (North Atlantic Treaty Organisation) Act Sections 266-271 Page 223 Non-application — sections 4 to 7 3 Sections 4 to 7 do not apply to a fee if (a) the fee is fixed by contract; (b) the person or body that fixes the fee does so by fix- ing a manner for determining the amount of the fee over which that person or body has no control, such as an auction or a method that is based on the market rate; or (c) the fee is referred to in paragraph (d) of the defini- tion fee. (2) Paragraph 3(b) of the Act is replaced by the following: (b) the President of the Treasury Board approves that those sections do not apply and the person or body that fixes the fee does so by fixing a manner for deter- mining the amount of the fee over which that person or body has no control, such as an auction or a method that is based on the market rate; or 272 (1) Section 9 of the Act is replaced by the fol- lowing: Non-application — sections 10 to 15 9 Sections 10 to 15 do not apply to a fee if (a) the fee is fixed by contract; (b) the person or body that fixes the fee does so by fix- ing a manner for determining the amount of the fee over which that person or body has no control, such as an auction or a method that is based on the market rate; (c) the fee is fixed by a regulation, as defined in sub- section 2(1) of the Statutory Instruments Act, that is published in Part I of the Canada Gazette before it is made; or (d) an Act of Parliament other than this Act requires consultation before the fee is fixed. (2) Paragraph 9(b) of the Act is replaced by the following: (b) the President of the Treasury Board approves that those sections do not apply and the person or body that fixes the fee does so by fixing a manner for deter- mining the amount of the fee over which that person or body has no control, such as an auction or a method that is based on the market rate; 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 12 Service Fees Act Amendments to the Act Sections 271-272 Page 224 273 (1) The portion of section 16 of the English version of the Act before paragraph (a) is re- placed by the following: Non-application — sections 17 and 18 16 Sections 17 and 18 do not apply to a fee if (2) Paragraphs 16(b) to (e) of the Act are replaced by the following: (b) the person or body that fixes the fee does so by fix- ing a manner for determining the amount of the fee over which that person or body has no control, such as an auction or a method that is based on the market rate; or (c) the fee is adjusted periodically by operation of an Act of Parliament other than this Act or by operation of an instrument made under such an Act. (3) Section 16 of the Act is replaced by the follow- ing: Non-application — sections 17 and 18 16 (1) Sections 17 and 18 do not apply to a fee if the fee is fixed by contract. Approval by President of Treasury Board (2) Sections 17 and 18 do not apply to a fee if the Presi- dent of the Treasury Board approves that those sections do not apply and (a) the person or body that fixes the fee does so by fix- ing a manner for determining the amount of the fee over which that person or body has no control, such as an auction or a method that is based on the market rate; (b) the fee is fixed in a manner that takes inflation in- to account; or (c) the fee is adjusted periodically by operation of an Act of Parliament other than this Act or by operation of an instrument made under such an Act. 274 Subsection 17(2) of the Act is replaced by the following: Exception (2) A fee is not adjusted by operation of subsection (1) in a fiscal year if (a) the fee is fixed in that fiscal year before the adjust- ment date; or 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 12 Service Fees Act Amendments to the Act Sections 273-274 Page 225 (b) the percentage change described in subsection (1) for that fiscal year is less than 1%. Adjustment — subsequent fiscal year (3) If paragraph (2)(b) applies with respect to a fiscal year, the percentage change referred to in that paragraph is carried forward to the subsequent fiscal year. If the combined percentage change is less than 1%, the fee is not adjusted for that subsequent fiscal year and the com- bined percentage change is carried forward to the next subsequent fiscal year. Adjustment of fee — round down (4) The responsible authority may, in accordance with Treasury Board policies or directives, round down a fee after an adjustment under subsection (1) in a given fiscal year. Anniversary date — change (5) Despite subsection (1), the responsible authority may change the anniversary date selected in respect of a fee in accordance with Treasury Board policies or directives. 275 Section 19 of the Act is repealed. 276 (1) Section 21 of the Act is replaced by the following: Report — President of Treasury Board 21 The President of the Treasury Board must, no later than March 31 of a fiscal year in which any report re- ferred to in subsection 20(1) is tabled, make a report ac- cessible to the public that (a) consolidates the information set out in the tabled reports; and (b) lists the amendments to the regulations made by the President of the Treasury Board under section 22 in that fiscal year. (2) Section 21 of the Act is amended by striking out “and” at the end of paragraph (a), by adding “and” at the end of paragraph (b) and by adding the following after paragraph (b): (c) lists the approvals given by the President of the Treasury Board in that fiscal year under this Act. 277 (1) Paragraph 22(2)(a) of the Act is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 12 Service Fees Act Amendments to the Act Sections 274-277 Page 226 (a) listing the fees that are considered to be low-mate- riality fees or the fees that are not considered to be low-materiality fees; (a.1) setting out criteria for determining whether fees are low-materiality fees and when low-materiality fees cease to be low-materiality fees; (2) Subsection 22(2) of the Act is amended by adding “and” at the end of paragraph (b) and by adding the following after that paragraph: (c) establishing the factors that the President of the Treasury Board must take into account while exercis- ing the power referred to in subsection (3). (3) Section 22 of the Act is amended by adding the following after subsection (2): Amending regulations — President of the Treasury Board (3) The President of the Treasury Board may, by regula- tion, amend regulations made under paragraph (2)(a), taking into account any factors established under para- graph (2)(c). 1997, c. 6 Consequential Amendment to the Canadian Food Inspection Agency Act 278 Section 25.1 of the Canadian Food Inspection Agency Act is renumbered as subsection 25.1(1) and is amended by adding the following: Application of sections 16 to 18 (2) Despite subsection 22(1) of the Service Fees Act, sec- tions 16 to 18 of that Act apply to a low-materiality fee within the meaning of that Act that is fixed under section 24 for a service or the use of a facility provided by the Agency under the Safe Food for Canadians Act or that is fixed under section 25 in respect of products, rights and privileges provided by the Agency under the Safe Food for Canadians Act. Coming into Force April 1, 2024 279 Subsections 271(2), 272(2), 273(3) and 276(2) come into force on April 1, 2024. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 12 Service Fees Act Amendments to the Act Sections 277-279 Page 227 DIVISION 13 R.S., c. C-8 Canada Pension Plan 280 Section 92 of the Canada Pension Plan is amended by adding the following after subsec- tion (2): Information provided by Minister of National Revenue (3) Despite any other Act or law, the Minister of National Revenue or any person that he or she designates may make available to the Minister a report providing infor- mation that is necessary for the purpose of policy analy- sis, research or evaluation related to the administration of this Act. DIVISION 14 2005, c. 34, s. 1; 2013, c. 40, s. 205 Department of Employment and Social Development Act 281 The Department of Employment and Social Development Act is amended by adding the fol- lowing after section 8: Social Insurance Numbers 8.1 The Minister may collect and use a person’s Social Insurance Number to verify their identity for the purpos- es of the administration or enforcement of any Act, pro- gram or activity in respect of which the administration or enforcement is the responsibility of the Minister. DIVISION 15 R.S., c. L-2 Canada Labour Code 282 (1) Subsections 206.5(2) to (4) of the Canada Labour Code are replaced by the following: Leave — death of child (2) Every employee is entitled to and shall be granted a leave of absence from employment of up to 156 weeks if the employee is the parent of a child who has died and it is probable, considering the circumstances, that the child died as a result of a crime. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 13 Canada Pension Plan Sections 280-282 Page 228 Leave — child who has disappeared (3) Every employee is entitled to and shall be granted a leave of absence from employment of up to 156 weeks if the employee is the parent of a child who has disap- peared and it is probable, considering the circumstances, that the child disappeared as a result of a crime. Exception (4) An employee is not entitled to a leave of absence if they are charged with the crime. (2) Paragraph 206.5(5)(b) of the Act is replaced by the following: (b) ends 156 weeks after the day on which the death or disappearance, as the case may be, occurs. (3) Paragraphs 206.5(6)(a) and (b) of the Act are replaced by the following: (a) on the 14th day after the day on which the child is found, if the child is found during the 156-week peri- od, but no later than the end of the 156-week period; or (b) 156 weeks after the day on which the disappear- ance occurs if subsection (2) applies to the child. (4) Subsection 206.5(8) of the Act is replaced by the following: Aggregate leave — employees (8) The aggregate amount of leave that may be taken by employees under this section in respect of the same death or disappearance of a child — or the same children who die or disappear as a result of the same event — must not exceed 156 weeks. 283 Paragraph 209.4(h) of the Act is replaced by the following: (h) prescribing cases, other than the one set out in subsection 206.5(4), in which an employee is not enti- tled to a leave of absence and cases in which an em- ployee is entitled to a leave of absence even if they are charged with the crime; 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 15 Canada Labour Code Sections 282-283 Page 229 DIVISION 16 2001, c. 27 Immigration and Refugee Protection Act (Claims for Refugee Protection) Amendments to the Act 284 (1) Subsection 99(3) of the Immigration and Refugee Protection Act is replaced by the follow- ing: Claim inside Canada (3) A claim for refugee protection made by a person in- side Canada must be made in person to an officer, must not be made by a person who is subject to a removal or- der, and is governed by this Part. (2) Subsection 99(3.1) of the Act is replaced by the following: Claim made inside Canada — not at port of entry (3.1) A person inside Canada who makes a claim for refugee protection or who, before making a claim, sub- mits any document or provides information with a view to making a claim, other than at a port of entry must pro- vide the officer, within the time limits provided for in the regulations, with the documents and information, includ- ing in respect of the basis for the claim, required by the rules of the Board or specified by the Minister. The docu- ments and information are to be provided in accordance with those rules and in the form and manner specified by the Minister. Coming into Force Order in council 285 Subsection 284(2) comes into force on a day to be fixed by order of the Governor in Council. DIVISION 17 2001, c. 27 Immigration and Refugee Protection Act (Sponsorship Applications) 286 Section 87.3 of the Immigration and Refugee Protection Act is amended by adding the follow- ing after subsection (1): 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 16 Immigration and Refugee Protection Act (Claims for Refugee Protection) Sections 284-286 Page 230 Clarification (1.1) For greater certainty, this section applies to a spon- sorship application made under subsection 13(1) to spon- sor a person referred to in subsection 99(2). DIVISION 18 2019, c. 29, s. 292 College of Immigration and Citizenship Consultants Act Amendments to the Act 287 Section 4 of the College of Immigration and Citizenship Consultants Act is amended by adding the following after paragraph (a): (a.1) establishing and providing training and develop- ment programs for licensees; 288 Subsection 15(1) of the Act is replaced by the following: Annual report 15 (1) The College must submit to the Minister, within 120 days after the end of each of its fiscal years, a report on the College’s activities during the preceding fiscal year. 289 The Act is amended by adding the following after section 39: Filing decision in Federal Court 39.1 (1) The College may file in the Federal Court a cer- tified copy of a decision made under section 38. Effect of filing (2) On the certified copy being filed, the decision be- comes and may be enforced as an order of the Federal Court. 290 Section 56 of the Act is replaced by the fol- lowing: Responsibility for damages — directors and others 56 No action or other proceeding for damages lies or may be instituted against any of the following persons for anything done or omitted to be done in good faith in the 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 17 Immigration and Refugee Protection Act (Sponsorship Applications) Sections 286-290 Page 231 exercise or purported exercise of any power, or in the performance or purported performance of any duty or function, conferred on that person under the Act: (a) a current or former director of the Board; (b) a current or former member of a committee of the College; (c) the Registrar or a former Registrar; (d) a current or former investigator; (e) a current or former officer, employee, agent or mandatary of the College; and (f) a person who is or has been engaged by the Col- lege. 291 Paragraph 57(2)(c) of the Act is replaced by the following: (c) refer the complaint to a process of dispute resolu- tion, on any conditions specified by the Complaints Committee, if the licensee consents. 292 (1) The portion of subsection 69(3) of the Act before paragraph (a) is replaced by the follow- ing: Professional misconduct or incompetence (3) If the Discipline Committee determines that the li- censee has committed professional misconduct or was in- competent, the Committee may, in its decision, take or require one or more of the following actions as well as any other action set out in the regulations: (2) Subsection 69(3) of the Act is amended by adding “or” at the end of paragraph (c), by strik- ing out “or” at the end of paragraph (d) and by repealing paragraph (e). 293 The Act is amended by adding the following after section 70: Filing decision in Federal Court 70.1 (1) The College may file in the Federal Court a cer- tified copy of a decision made under subsection 69(3). Effect of filing (2) On the certified copy being filed, the decision be- comes and may be enforced as an order of the Federal Court. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 18 College of Immigration and Citizenship Consultants Act Amendments to the Act Sections 290-293 Page 232 294 Section 71 of the Act is renumbered as sub- section 71(1) and is amended by adding the fol- lowing: Respondent — committee (2) However, if the College makes an application for ju- dicial review of a decision of its committees, the commit- tee is the respondent. 295 The Act is amended by adding the following after section 73: Powers of College Administration of Licensee’s Property Order 73.1 (1) If a licensee is not able to perform their activi- ties as an immigration and citizenship consultant for any prescribed reason, the College may, in order to carry out its purpose, including to ensure the continuation of ser- vices to a licensee’s client, apply, without notice, to a court of competent jurisdiction, including the Federal Court, for an order authorizing the College or a person appointed by the court to administer any property in re- lation to those activities that is or should be in the li- censee’s possession or under their control. Content of order (2) If the court concludes that it is necessary to ensure the continuation of services to the licensee’s clients or to otherwise permit the College to carry out its purpose, it may, for the purposes of subsection (1), (a) authorize the College or person appointed by the court to (i) enter a place, including a vehicle, in which the College or person has reasonable grounds to believe property referred to in subsection (1) is located, (ii) examine anything in the place, (iii) open or order any person to open any contain- er or package found in the place, (iv) require the owner or person in charge of the place and any person in the place to give all assis- tance that is reasonably required to enable the Col- lege or person appointed by the court to execute the order and to provide any property referred to in 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 18 College of Immigration and Citizenship Consultants Act Amendments to the Act Sections 294-295 Page 233 subsection (1) or any information, and access to any data, that are reasonably required for that pur- pose, and (v) seize any document or other thing related to a client’s files and transfer it to the client or a licensee or person referred to in paragraph 21.1(2)(a) or (b) or subsection 21.1(3) or (4) of the Citizenship Act or paragraph 91(2)(a) or (b) or subsection 91(3) or (4) of the Immigration and Refugee Protection Act; (b) order that any property referred to in subsection (1) is not to be dealt with by any person without leave of the court or is to be held in trust by the College or person appointed by the court; (c) require the licensee to account to the College or person appointed by the court for any property re- ferred to in subsection (1); (d) provide for the compensation of the College or person appointed by the court for administering the li- censee’s property and the reimbursement of any ex- penses the College or person incurs in doing so; and (e) provide for any other matter that it considers ap- propriate in the circumstances, including imposing conditions on the manner in which the College or per- son appointed by the court is to execute the order. Additional authority (3) The court may also authorize the College or person appointed by the court to seize and detain any property referred to in subsection (1) found in the place and trans- fer it to any person for the purpose of carrying on the li- censee’s business operations or winding up their prac- tice. Former licensee (4) For greater certainty, the College has jurisdiction to apply for an order referred to in subsection (1) in respect of a former licensee. Limitation or prescription 73.2 The College is not permitted to make an applica- tion under subsection 73.1(1) after the sixth anniversary of the day on which a licensee ceases to be a licensee. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 18 College of Immigration and Citizenship Consultants Act Amendments to the Act Section 295 Page 234 Application 73.3 Sections 52 and 53 apply in respect of an order is- sued under subsection 73.1(1) with any adaptations that may be necessary. Obstruction and false statements 73.4 It is prohibited to obstruct or hinder, or make a false or misleading statement either orally or in writing, to the College or person appointed by the Court when the College or person is executing an order issued under sub- section 73.1(1). Information-sharing Agreement or Arrangement Information sharing 73.5 (1) The College may enter into an agreement or ar- rangement with any entity, including a government in- stitution, as defined in section 3 of the Access to Infor- mation Act, or an institution of a government of a province or foreign state, for the sharing of information for the purpose of assisting in the administration and en- forcement of this Act, or any other Act of Parliament or of a province or any other law, as it relates to immigra- tion and citizenship consultants. Limitation (2) An agreement or arrangement entered into under subsection (1) is subject to the by-laws and regulations made under this Act. 296 The portion of subsection 79(1) of the Act be- fore paragraph (a) is replaced by the following: Offences and punishment 79 (1) Every person who contravenes section 55, 70 or 73.4 or an order made under paragraph 66(a) is guilty of an offence and liable 297 Subsection 81(2) of the Act is replaced by the following: Authorization (2) Regulations made under paragraphs (1)(c) to (f), (h) to (j), (l) to (p), (r), (s), (u) and (x) may authorize the Col- lege to make by-laws with respect to all or part of the subject matter of the regulations and, for greater certain- ty, those by-laws are regulations for the purposes of the Statutory Instruments Act. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 18 College of Immigration and Citizenship Consultants Act Amendments to the Act Sections 295-297 Page 235 Related Amendments R.S., c. C-29 Citizenship Act 298 Subsection 27(3) of the Citizenship Act is re- placed by the following: Right to request review (3) Any regulation made under paragraph (1)(k.6) must provide that a person who is the subject of a notice of vio- lation has the right to request, from a person appointed under subsection (4), a review of the notice or of the penalty imposed. 2001, c. 27 Immigration and Refugee Protection Act 299 Subsection 91.1(2) of the Immigration and Refugee Protection Act is replaced by the follow- ing: Right to request review (2) Any regulation made under paragraph (1)(a) must provide that a person who is the subject of a notice of vio- lation has the right to request, from a person appointed under subsection (3), a review of the notice or of the penalty imposed. DIVISION 19 R.S., c. C-29 Citizenship Act Amendments to the Act 300 The Citizenship Act is amended by adding the following after section 2: Biometric Information Biometric information — collection, use, etc. 2.1 The Minister may, for the purpose of administering and enforcing this Act, collect, use, verify, retain and dis- close biometric information in accordance with the regu- lations. Provision of biometric information 2.2 (1) Subject to subsection (2) and the regulations, a person who makes an application or request under this Act must provide the biometric information specified by 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 18 College of Immigration and Citizenship Consultants Act Related Amendments Sections 298-300 Page 236 the regulations in accordance with the procedures set out in the regulations for the collection and verification of biometric information. Exceptional circumstances (2) If the Minister considers that exceptional circum- stances warrant it, the Minister may, on the Minister’s own initiative, decide that subsection (1) does not apply in respect of a class of persons and may specify the bio- metric information that a person who is a member of that class is to provide and the procedure to follow for the col- lection and verification of that biometric information. 301 The portion of subsection 12(1) of the Act be- fore paragraph (a) is replaced by the following: Application for evidence of citizenship 12 (1) The Minister shall, on application by a person, determine whether they are a citizen and, if they are, 302 (1) Subsection 27(1) of the Act is amended by adding the following before paragraph (b): (a) respecting the application of section 2.2, including regulations respecting (i) restrictions on the persons to whom and on the applications or requests to which that section ap- plies, (ii) the biometric information that is to be provid- ed, (iii) the circumstances in which a person is not re- quired to provide certain biometric information, and (iv) the circumstances in which a person is exempt from the application of that section; (2) Paragraph 27(1)(k.1) of the Act is replaced by the following: (k.1) providing for the collection, retention, use, veri- fication, disclosure and disposal of information for the purposes of this Act; (3) Subsection 27(1) of the Act is amended by striking out “and” at the end of paragraph (k.9) and by adding the following after that paragraph: (k.91) providing the circumstances in which the Min- ister may require a person, or a person who is a mem- ber of a class of persons, who makes an application or 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 19 Citizenship Act Amendments to the Act Sections 300-302 Page 237 request or who provides any document, information or evidence under this Act to do so using any means that are specified by the Minister; and 303 Subsection 27.2 of the Act is amended by adding the following after paragraph (a): (a.1) respecting the procedures for the collection and verification of biometric information; (a.2) respecting the processing of collected biometric information, including the creation of biometric tem- plates; 304 The Act is amended by adding the following after section 27.2: Regulations — electronic means 27.21 (1) The Minister may make regulations respect- ing the application of section 28.2 and paragraph 28.3(b), including regulations respecting (a) the technology or format to be used, or the stan- dards, specifications or processes to be followed, in- cluding for the making or verifying of an electronic signature and the manner in which it is to be used; and (b) the date and time when, and the place where, an electronic version of an application, request, notice, decision, determination or document or any informa- tion or evidence is deemed to be sent or received. Electronic and other means (2) The regulations made under subsection (1) may in- clude provisions requiring a person who makes an appli- cation or request or who provides any document, infor- mation or evidence under this Act to do so using elec- tronic means, including an electronic system, and provi- sions respecting such means, including such a system. The regulations may also include provisions prescribing the circumstances in which the application, request, doc- ument, information or evidence may be provided by oth- er means and respecting those other means. Electronic payments (3) The regulations may also include provisions (a) requiring that payments that are required to be made or evidence of payment that is required to be provided under this Act must be made or provided by means of an electronic system and respecting such a system; 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 19 Citizenship Act Amendments to the Act Sections 302-304 Page 238 (b) prescribing the circumstances in which such pay- ments may be made or evidence of such payments may be provided by other means and respecting such other means; and (c) respecting the date and time when, and the place where, an electronic payment or evidence of payment is deemed to be sent or received. 305 The Act is amended by adding the following after section 28.1: PART VI.1 Electronic Administration and Enforcement Power — Minister 28.2 (1) The Minister may administer and enforce this Act using electronic means. Power — citizenship judges and Registrar (2) A citizenship judge and the Registrar of Canadian Citizenship may, in the exercise of their powers and per- formance of their duties and functions under this Act, use the electronic means that are made available or spec- ified by the Minister. Delegation (3) A person who has been authorized by the Minister to do anything that may be done by the Minister under this Act, may do so using the electronic means that are made available or specified by the Minister. Decision or determination — automated system (4) For greater certainty, an electronic system, including an automated system, may be used to process an applica- tion, proceed with an examination or make a decision or determination under this Act. Conditions for electronic version 28.3 If any provision of this Act or the regulations re- quires a signature or any information or evidence to be provided, an application, request, decision or determina- tion to be made, a notice to be given or any other docu- ment to be issued or otherwise provided, the electronic version of the signature, information or evidence, appli- cation, request, decision or determination, notice or oth- er document is satisfied by its electronic version, if 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 19 Citizenship Act Amendments to the Act Sections 304-305 Page 239 (a) the electronic version is provided by the electronic means, including an electronic system, that are made available or specified by the Minister; and (b) any other requirements that may be prescribed are met. For greater certainty 28.4 For greater certainty, if any provision of this Act or the regulations authorizes the Minister to require that any document, information or evidence be provided, the Minister is not precluded by this Part from requiring that the document, information or evidence, as the case may be, be provided in accordance with that provision. Coming into Force Order in council 306 Section 300, subsections 302(1) and (2) and section 303 come into force on a day to be fixed by order of the Governor in Council. DIVISION 20 2002, c. 7 Yukon Act 307 The Yukon Act is amended by adding the fol- lowing after section 55: Adverse effects — Type II Sites 55.1 (1) If the Minister has the administration of public real property that is a “Type II Site” within the meaning of the Yukon Northern Affairs Program Devolution Transfer Agreement made on October 29, 2001, the Min- ister may take any measures on the public real property that the Minister considers necessary to prevent, coun- teract, mitigate or remedy any adverse effect on persons, property or the environment. Entry (2) For the purposes of subsection (1), the Minister may enter any place on the public real property, except a place that is designed to be used and is being used as a perma- nent or temporary private dwelling-place. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 19 Citizenship Act Amendments to the Act Sections 305-307 Page 240 DIVISION 21 Oceans Protection Plan SUBDIVISION A 2001, c. 6 Marine Liability Act Amendments to the Act 308 The heading “Interpretation” before section 24 of the Marine Liability Act is replaced by the following: DIVISION 1 Convention on Limitation of Liability for Maritime Claims, 1976 Interpretation 309 The portion of section 24 of the Act before the first definition is replaced by the following: Definitions 24 The following definitions apply in this Division. 310 The portion of subsection 25(1) of the Act be- fore paragraph (a) is replaced by the following: Extended meaning of expressions 25 (1) For the purposes of this Division and Articles 1 to 15 of the Convention, 311 (1) Subsection 26(1) of the Act is replaced by the following: Force of law 26 (1) Subject to the other provisions of this Division, Articles 1 to 15 and 18 of the Convention and Articles 8 and 9 of the Protocol have the force of law in Canada. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan Sections 308-311 Page 241 (2) Subsection 26(3) of the Act is replaced by the following: Exceptions (3) This Division does not apply to a claim that is the subject of a reservation made by Canada. 312 Paragraphs 29(a) and (b) of the Act are re- placed by the following: (a) $1,500,000 in respect of claims for loss of life or personal injury; and (b) $750,000 in respect of any other claims. 313 Subsection 33(1) of the Act is amended by adding the following after paragraph (a): (a.1) permitting that person to reduce the amount that they are required to pay to the fund by up to an amount equal to the sum of any amounts paid to a claimant before the constitution of the fund in respect of a maritime claim for oil pollution damage caused by oil of any kind or in any form other than oil as defined in Article I of the Civil Liability Convention as de- fined in subsection 47(1); 314 The Act is amended by adding the following after section 33: Public notice 33.1 (1) In the case of a maritime claim referred to in paragraph 33(1)(a.1), the person constituting the fund must, as soon as feasible, give notice of the fund’s consti- tution in (a) the Canada Gazette; (b) a newspaper in general circulation in the region where the incident occurred; and (c) any other appropriate manner in the communities potentially affected by the incident. Accessibility (2) Notices given under paragraphs (1)(b) and (c) are to be made accessible to the public for a period of at least 30 days. Proof of accessibility (3) The person constituting the fund must, within 15 days after the 30th day of the period referred to in sub- section (2), file evidence in the Admiralty Court that the 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION A Marine Liability Act Sections 311-314 Page 242 notices have been made accessible to the public for a pe- riod of at least 30 days. Court order in case of non-compliance (4) The Admiralty Court may issue any order that it deems appropriate to remedy the failure of the person to give any of the required public notices or the inadequacy of a notice. 315 Subsection 34(1) of the Act is replaced by the following: Release of ships, etc. 34 (1) If a ship or other property is released under para- graph 2 of Article 13 of the Convention, in any case other than one in which a fund has been constituted in a place described in paragraphs 2(a) to (d) of that Article, the person who obtained the release is deemed to have sub- mitted to the jurisdiction of the court that ordered the re- lease for the purpose of determining the claim. 316 Paragraph 34.1(b) of the Act is replaced by the following: (b) generally for carrying out the purposes and provi- sions of this Division. 317 The Act is amended by adding the following after section 34.1: DIVISION 2 Limitation of Liability — Air Cushion Vehicles Interpretation Definitions 34.2 The following definitions apply in this Division. Convention means the Convention on Limitation of Lia- bility for Maritime Claims, 1976, concluded at London on November 19, 1976, as amended by the Protocol, Articles 1 to 15 of which Convention are set out in Part 1 of Schedule 1. (Convention) owner, in relation to an air cushion vehicle, means the owner, charterer, manager and operator of an air cushion vehicle. (propriétaire) passenger means 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION A Marine Liability Act Sections 314-317 Page 243 (a) a person carried on board an air cushion vehicle (i) under a contract of passenger carriage, or (ii) to accompany, with the consent of the carrier, a vehicle or live animals which are covered by a con- tract for the carriage of goods; or (b) a participant in an adventure tourism activity re- ferred to in subsection 37.1(1). (passager) Protocol means the Protocol of 1996 to amend the Con- vention on Limitation of Liability for Maritime Claims, 1976, concluded at London on May 2, 1996. (Protocole) Application Force of law 34.3 (1) Subject to the other provisions of this Division, Article 1, paragraphs 1(a) to (c), (e) and (f) and para- graph 2 of Article 2, paragraphs (a), (c) and (e) of Article 3, Articles 4 and 5, paragraphs 2 and 3 of Article 6, para- graph 1 of Article 9 and Articles 10 to 14 of the Conven- tion have the force of law in Canada in relation to air cushion vehicles. Adaptation — Convention (2) For the purposes of this Division, the provisions of the Convention referred to in subsection (1) are adapted as follows: (a) a reference to “ship” or “vessel” is to be read as a reference to “air cushion vehicle”; (b) a reference to “shipowner” is to be read as a refer- ence to “owner”; (c) paragraph 2 of Article 1 of the Convention is to be read without reference to the word “seagoing”; (d) the expression “carriage by sea” in paragraph 1(b) of Article 2 of the Convention is to be read as “carriage by water”; (e) the first reference to “paragraph 1(a)” in para- graph 2 of Article 6 of the Convention is to be read as reference to “subsection 34.4(1), (2) or (4)” of this Act and the second reference to “paragraph 1(a)” is to be read as a reference to “subsections 34.4(1), (2) and (4) in proportion to the amount of the established claims under each of those subsections”; 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION A Marine Liability Act Section 317 Page 244 (f) a reference to “paragraph 1(b)” in paragraphs 2 and 3 of Article 6 of the Convention is to be read as a reference to “subsection 34.4(5)” of this Act; (g) the reference to “Article 6” in paragraph 1 of Arti- cle 9 of the Convention is to be read as a reference to “section 34.4” of this Act; (h) the reference to “Articles 6 and 7” in paragraph 1 of Article 11 of the Convention is to be read as a refer- ence to “section 34.4” of this Act; and (i) the reference to “the provisions of paragraphs 1, 2 and 3 of Article 6 and of Article 7” in paragraph 1 of Article 12 of the Convention is to be read as a refer- ence to “section 34.4” of this Act. Inconsistency (3) In the event of any inconsistency between sections 34.4 to 34.7 of this Act and the provisions of the Conven- tion referred to in subsection (1), those sections prevail to the extent of the inconsistency. Maximum Liability Passenger claims 34.4 (1) The maximum liability for claims that arise on any distinct occasion for loss of life or personal injury to passengers of an air cushion vehicle of less than 8 000 kg all up weight is the greater of (a) $3,500,000, and (b) $300,000 multiplied by (i) the number of passengers that the air cushion vehicle is authorized to carry according to any Canadian maritime document required under the Canada Shipping Act, 2001, or (ii) the number of passengers on board the air cushion vehicle, if no Canadian maritime document is required under that Act. Claims — no contract of carriage (2) The maximum liability for claims that arise on any distinct occasion for loss of life or personal injury to per- sons carried on board an air cushion vehicle of less than 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION A Marine Liability Act Section 317 Page 245 8 000 kg all up weight otherwise than under a contract of passenger carriage is the greater of (a) $3,500,000, and (b) $300,000 multiplied by (i) the number of passengers that the air cushion vehicle is authorized to carry according to any Canadian maritime document required under the Canada Shipping Act, 2001, or (ii) the number of persons on board the air cushion vehicle, if no Canadian maritime document is re- quired under that Act. Exception (3) Subsection (2) does not apply in respect of (a) the master of an air cushion vehicle, a member of an air cushion vehicle’s crew — or any other person employed or engaged in any capacity on the business of an air cushion vehicle — when they are carried on board the air cushion vehicle; (b) a person carried on board an air cushion vehicle that is not operated for a commercial or public pur- pose; (c) a person carried on board an air cushion vehicle in pursuance of the obligation on the master to carry shipwrecked, distressed or other persons or by reason of any circumstances that neither the master nor the owner of the air cushion vehicle could have prevented; or (d) a stowaway, a trespasser or any other person who boards an air cushion vehicle without the consent or knowledge of the master or the owner of the air cush- ion vehicle. Other claims — loss of life or personal injury (4) The maximum liability for claims that arise on any distinct occasion for loss of life or personal injury involv- ing an air cushion vehicle, other than claims referred to in subsections (1) and (2), is (a) $1,500,000 for an air cushion vehicle of less than 8 000 kg all up weight; (b) $5,000,000 for an air cushion vehicle of 8 000 kg or more but less than 13 000 kg all up weight; and 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION A Marine Liability Act Section 317 Page 246 (c) $5,000,000 for an air cushion vehicle of 13 000 kg or more all up weight, plus $40 for each kilogram that exceeds 13 000 kg. Other claims (5) The maximum liability for claims that arise on any distinct occasion involving an air cushion vehicle, other than claims referred to in subsections (1), (2) and (4), is (a) $750,000 for an air cushion vehicle of less than 8 000 kg all up weight; (b) $2,500,000 for an air cushion vehicle of 8 000 kg or more but less than 13 000 kg all up weight; and (c) $2,500,000 for an air cushion vehicle of 13 000 kg or more all up weight, plus $20 for each kilogram that exceeds 13 000 kg. Procedure Jurisdiction of Admiralty Court 34.5 (1) The Admiralty Court has exclusive jurisdiction with respect to any matter relating to the constitution and distribution of a limitation fund under Articles 11 to 13 of the Convention. Right to assert limitation defence (2) If a claim is made or apprehended against a person in respect of liability that is limited by section 34.4, that per- son may assert the right to limitation of liability in a de- fence filed, or by way of action or counterclaim for declaratory relief, in any court of competent jurisdiction in Canada. Powers of Admiralty Court 34.6 (1) If a claim is made or apprehended against a person in respect of liability that is limited by section 34.4, the Admiralty Court, on application by that person or any other interested person, including a person who is a party to proceedings in relation to the same subject- matter before another court, tribunal or authority, may take any steps it considers appropriate, including (a) determining the amount of the liability and pro- viding for the constitution and distribution of a fund under Articles 11 and 12 of the Convention; (b) joining interested persons as parties to the pro- ceedings, excluding any claimants who do not make a claim within a certain time, requiring security from the person claiming limitation of liability or from any 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION A Marine Liability Act Section 317 Page 247 other interested person and requiring the payment of any costs; and (c) enjoining any person from commencing or contin- uing proceedings in any court, tribunal or authority other than the Admiralty Court in relation to the same subject-matter. Court may postpone distribution (2) In providing for the distribution of a fund under paragraph (1)(a) in relation to any liability, the Admiralty Court may, having regard to any claim that may subse- quently be established before a court, tribunal or other authority outside Canada in respect of that liability, post- pone the distribution of any part of the fund that it con- siders appropriate. Lien and other rights (3) No lien or other right in respect of an air cushion ve- hicle or other property affects the proportions in which a fund is distributed by the Admiralty Court. Procedural matters (4) The Admiralty Court may (a) make any rule of procedure it considers appropri- ate with respect to proceedings before it under this section; and (b) determine what form of guarantee it considers to be adequate for the purposes of paragraph 2 of Article 11 of the Convention. Interest (5) For the purposes of Article 11 of the Convention, in- terest is payable at the rate prescribed under the Income Tax Act for amounts payable by the Minister of National Revenue as refunds of overpayments of tax under that Act. Release 34.7 If an air cushion vehicle or other property is re- leased under paragraph 2 of Article 13 of the Convention, in any case other than one in which a fund has been con- stituted in a place described in paragraphs 2(a) to (d) of that Article, the person who obtained the release is deemed to have submitted to the jurisdiction of the court that ordered the release for the purpose of determining the claim. 318 Paragraph 36(1)(a) of the Act is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION A Marine Liability Act Sections 317-318 Page 248 (a) the definition ship in Article 1 of the Convention shall be read as including any vessel, craft or air cush- ion vehicle designed, used or capable of being used solely or partly for navigation, whether seagoing or not, but not including a vessel propelled manually by paddles or oars; and 319 Section 41 of the Act is replaced by the fol- lowing: Definition of Hague-Visby Rules 41 In this Part, Hague-Visby Rules means the rules set out in Schedule 3 and embodied in the International Convention for the Unification of Certain Rules of Law relating to Bills of Lading, concluded at Brussels on Au- gust 25, 1924, in the Protocol concluded at Brussels on February 23, 1968, and in the additional Protocol con- cluded at Brussels on December 21, 1979. 320 Subsection 43(4) of the Act is repealed. 321 Section 44 of the Act and the heading before it are repealed. 322 The portion of subsection 46(1) of the Act be- fore paragraph (a) is replaced by the following: Claims 46 (1) If a contract for the carriage of goods by water provides for the adjudication or arbitration of claims arising under the contract in a place other than Canada, a claimant may institute judicial or arbitral proceedings in a court or arbitral tribunal in Canada that would be com- petent to determine the claim if the contract had referred the claim to Canada, if 323 Section 51 of the Act is amended by adding the following after subsection (2): Liability — fishing, hunting, trapping and harvesting (3) For greater certainty, for the purposes of Article III of the Civil Liability Convention, the liability of the owner of a ship includes economic loss in relation to the exercise of fishing, hunting, trapping or harvesting rights recog- nized and affirmed by section 35 of the Constitution Act, 1982 suffered by an Indigenous group, community or people that holds those rights or suffered by a member of such a group, community or people. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION A Marine Liability Act Sections 318-323 Page 249 324 Subsection 53(1) of the Act is amended by striking out “and” at the end of paragraph (a) and by adding the following after that paragraph: (a.1) permitting that person to reduce the amount that they are required to pay to the fund by up to an amount equal to the sum of any amounts paid to a claimant before the constitution of the fund; and 325 Subsections 54(1) and (2) of the Act are re- placed by the following: Public notice 54 (1) The person constituting the fund must, as soon as feasible, give notice of the fund’s constitution in (a) the Canada Gazette; (b) a newspaper in general circulation in the region where the incident occurred; and (c) any other appropriate manner in the communities potentially affected by the incident. Accessibility (1.1) Notices given under paragraphs (1)(b) and (c) are to be made accessible to the public for a period of at least 30 days. Proof of accessibility (2) The person constituting the fund must, within 15 days after the 30th day of the period referred to in sub- section (1.1), file evidence in the Admiralty Court that the notices have been made accessible to the public for a pe- riod of at least 30 days. 326 The portion of subsection 55(1) of the Act be- fore paragraph (a) is replaced by the following: Absence of certificate 55 (1) Unless a ship carries a certificate described in Ar- ticle VII of the Civil Liability Convention issued in accor- dance with subsection 56(1), the ship must not 327 The Act is amended by adding the following before section 69: Extended meaning of expressions 68.1 For the purposes of sections 69 to 74 and Articles 1 to 10 of the Bunkers Convention, the definition ship in Article 1 of the Bunkers Convention includes non-seago- ing vessels and non-seaborne craft. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION A Marine Liability Act Sections 324-327 Page 250 328 Section 71 of the Act is amended by adding the following after subsection (2): Liability — fishing, hunting, trapping and harvesting (3) For greater certainty, for the purposes of Article 3 of the Bunkers Convention, the liability of the owner of a ship includes economic loss in relation to the exercise of fishing, hunting, trapping or harvesting rights recognized and affirmed by section 35 of the Constitution Act, 1982 suffered by an Indigenous group, community or people that holds those rights or suffered by a member of such a group, community or people. 329 Section 72 of the Act is replaced by the fol- lowing: Application of Division 1 of Part 3 72 Division 1 of Part 3 applies to claims arising under the Bunkers Convention. 330 The portion of subsection 73(1) of the Act be- fore paragraph (a) is replaced by the following: Absence of certificate 73 (1) Unless a ship carries a certificate described in Ar- ticle 7 of the Bunkers Convention issued in accordance with subsection 74(1), the ship must not 331 (1) Paragraph 77(1)(a) of the Act is replaced by the following: (a) for oil pollution damage from the ship, including economic loss in relation to the exercise of fishing, hunting, trapping or harvesting rights recognized and affirmed by section 35 of the Constitution Act, 1982 suffered by an Indigenous group, community or peo- ple that holds those rights or suffered by a member of such a group, community or people; (2) Subsection 77(1.2) of the English version of the Act is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION A Marine Liability Act Sections 327-331 Page 251 Words and expressions defined (1.2) For the purposes of subsection (1.1), words and ex- pressions used in that subsection that are not defined have the same meaning as in the Civil Liability Conven- tion as defined in subsection 47(1). 332 (1) Subsection 92(2) of the Act is amended by adding the following after paragraph (c): (c.1) any amounts received by the Administrator fur- ther to the notice given under subsection 106.02(3) or paragraph 106.04(1)(b) or recovered under section 106.05; (2) Paragraph 92(3)(a.1) of the Act is replaced by the following: (a.1) all amounts that are directed to be paid under paragraph 106(3)(a) or 106.04(1)(c), subsection 106.3(4) or section 117 or under a settlement; (3) Paragraph 92(3) of the Act is amended by adding “and” at the end of paragraph (d) and by repealing paragraph (e). 333 (1) Section 103 of the Act is amended by adding the following after subsection (1.1): Claims filed with Administrator — future losses (1.2) A claim arising out of oil pollution damage may be filed with the Administrator for (a) future loss of profit or income and future costs or expenses for the mitigation of that loss by a person who expects to suffer loss or incur costs or expenses; (b) future economic loss related to fishing, hunting, trapping or harvesting for personal or household use and future costs or expenses for the mitigation of that loss by an individual who expects to suffer loss or in- cur costs or expenses; (c) future economic loss related to the exercise of fish- ing, hunting, trapping or harvesting rights recognized and affirmed by section 35 of the Constitution Act, 1982 and future costs or expenses for the mitigation of that loss by a council, government or other entity that is authorized to act on behalf of an Indigenous group, community or people that holds those rights if that group, community or people expects to suffer loss or incur costs or expenses; and 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION A Marine Liability Act Sections 331-333 Page 252 (d) costs or expenses for meeting the conditions im- posed by the Administrator under subsection 105(1.2) by a person referred to in paragraph (a), an individual referred to in (b) or a council, government or other en- tity referred to in paragraph (c) who expects to incur those costs or expenses. Period covered by the claim (1.3) The claim filed under subsection (1.2) must specify the period covered by the claim, which, for greater cer- tainty, may extend beyond the periods referred to in sub- section (2) during which the claim must be filed. (2) The portion of subsection 103(2) of the Act be- fore paragraph (a) is replaced by the following: Limitation or prescription period (2) A claim referred to in any of subsections (1) to (1.2) must be made (3) Paragraphs 103(2)(a) and (b) of the English version of the Act are replaced by the following: (a) if oil pollution damage occurs, within two years af- ter the day on which that damage occurs and five years after the incident that causes that damage; or (b) if no oil pollution damage occurs, within five years after the incident in respect of which oil pollution damage is anticipated. (4) Subsection 103(3) of the Act is replaced by the following: Exception (3) Subsections (1) to (1.2) do not apply to a person in a state other than Canada and subsections (1) and (1.1) do not apply to a response organization referred to in para- graph 51(1)(a), 71(1)(a) or 77(1)(b). 334 (1) Subsection 105(1) of the Act is replaced by the following: Administrator’s duties 105 (1) On receipt of a claim under subsection 103(1) or (1.1), the Administrator shall investigate and assess it and shall (a) make an offer of compensation to the claimant for whatever portion of it that the Administrator finds to be established; or 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION A Marine Liability Act Sections 333-334 Page 253 (b) disallow the claim and notify the claimant of its disallowance in writing. Administrators duties — future losses (1.1) On receipt of a claim under subsection 103(1.2), the Administrator shall investigate and assess it and shall (a) make an offer of compensation to the claimant for whatever portion of it that the Administrator finds to be established; (b) make an offer of compensation to the claimant on an interim payment schedule for whatever portion of it that the Administrator finds to be established and provide the dates for future payments; or (c) disallow the claim and notify the claimant of its disallowance in writing. Conditions (1.2) If the Administrator makes an offer of compensa- tion under paragraph (1.1)(a) or (b), the Administrator may impose conditions on the claimant as part of that of- fer, including a requirement to keep records containing information relating to the claim. (2) Paragraph 105(3)(a) of the Act is replaced by the following: (a) whether it is for loss, damage, costs or expenses referred to in subsection 103(1), (1.1) or (1.2), as the case may be; and 335 (1) Subsection 106(1) of the Act is replaced by the following: Offer of compensation 106 (1) If the Administrator makes an offer of compen- sation to a claimant under paragraph 105(1)(a), (1.1)(a) or (b), as the case may be, the claimant shall, within 60 days after receiving the offer, notify the Administrator whether they accept or refuse it and, if no notification is received by the Administrator within that period, the claimant is deemed to have refused the offer. (2) Subsection 106(2) of the English version of the Act is replaced by the following: Appeal to Admiralty Court (2) A claimant may, within 60 days after receiving an of- fer of compensation or a notification that the Administra- tor has disallowed the claim, appeal the offer or the disal- lowance of the claim to the Admiralty Court, but in an appeal from the disallowance of a claim, that Court may 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION A Marine Liability Act Sections 334-335 Page 254 consider only the matters described in paragraphs 105(3)(a) and (b). (3) Paragraphs 106(3)(a) and (b) of the Act are re- placed by the following: (a) the Administrator shall direct payment to be made to the claimant of the amount of the offer out of the Ship-source Oil Pollution Fund without delay or ac- cording to the payment schedule referred to in para- graph 105(1.1)(b), as the case may be; (b) the claimant is then precluded from pursuing any rights that they may have had against any person in respect of matters referred to in sections 51, 71 and 77, Article III of the Civil Liability Convention and Article 3 of the Bunkers Convention in relation to the occur- rence to which the offer of compensation relates, ex- cept that (i) with respect to the acceptance of an offer of compensation made under paragraph 105(1)(a), the claimant may pursue any rights that they may have under subsection 103(1.2) in a single claim, and (ii) with respect to the acceptance of an offer of compensation made under paragraph 105(1.1)(a) or (b), the claimant may pursue any rights that they may have under subsection 103(1) or (1.1) in a sin- gle claim; 336 The Act is amended by adding the following after section 106: Cessation of payments 106.01 (1) Despite paragraph 106(3)(a), the Adminis- trator may direct, at any time after the claimant accepts an offer of compensation, that some or all of the pay- ments referred to in paragraph 105(1.1)(b) not be made to the claimant if (a) a condition imposed on the claimant under sub- section 105(1.2) is not met; (b) the Administrator has reasonable grounds to be- lieve that the claimant did not take reasonable mea- sures to mitigate the loss for which a claim has been filed under subsection 103(1.2); or (c) the Administrator has reasonable grounds to be- lieve that the claimant’s loss has been mitigated. Notice (2) If the Administrator directs under subsection (1) that a payment not be made to the claimant, the 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION A Marine Liability Act Sections 335-336 Page 255 Administrator must, as soon as feasible, give the claimant notice in writing. Appeal to Admiralty Court (3) A claimant may, within 60 days after receiving the notice, appeal the decision set out in the notice to the Ad- miralty Court. Records — future loss 106.02 (1) If the Administrator imposes a condition re- quiring the claimant to keep records under subsection 105(1.2), the Administrator may, within the following pe- riods, request that the claimant provide the Administra- tor with the records: (a) in the case of a payment made in accordance with an offer of compensation made under paragraph 105(1.1)(a), the period that ends on the later of (i) one year after the day on which the payment was made, and (ii) three years after the day of the occurrence in re- spect of which the claimant filed a claim; (b) in the case of payments made in accordance with an offer of compensation made under paragraph 105(1.1)(b) that have ceased under subsection 106.01(1), the period that ends on the later of (i) one year after the day on which the notice was sent by the Administrator under subsection 106.01(2), and (ii) three years after the day of the occurrence in re- spect of which the claimant filed a claim; or (c) in the case of payments made in accordance with an offer of compensation made under paragraph 105(1.1)(b) that have not ceased, the period that ends on the later of (i) one year after the day on which the final pay- ment was made, and (ii) three years after the day of the occurrence in re- spect of which the claimant filed a claim. Period (2) If the Administrator requests records under subsec- tion (1), the claimant must provide them to the Adminis- trator within 30 days beginning on the day on which the 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION A Marine Liability Act Section 336 Page 256 claimant receives the request or within any longer period agreed to by the Administrator and the claimant. Failure to provide records (3) If the claimant does not provide the Administrator with the records within the applicable period, the Admin- istrator may give the claimant a notice that they are re- quired to repay to the Administrator the amount or a portion of the amount of the payment made to them un- der paragraph 106(3)(a), in the manner and within the period set out in the notice. Post-payment investigation and reassessment 106.03 (1) The Administrator may, within the period referred to in subsection 106.02(1), investigate and re- assess any claim under subsection 103(1.2) for which a payment was made under paragraph 106(3)(a). Administrator’s powers (2) For the purpose of investigating and reassessing a claim, the Administrator has the powers of a commis- sioner under Part I of the Inquiries Act. Factors to be considered (3) When investigating and reassessing a claim, the Ad- ministrator may consider only (a) whether it is for loss, costs or expenses referred to in subsection 103(1.2) that the claimant has suffered or incurred; (b) whether it resulted wholly or partially from (i) an act done or omitted to be done by the claimant with intent to cause damage, or (ii) the claimant’s negligence; (c) whether it is for loss, costs or expenses for which another claim has been filed; (d) whether the Administrator has reasonable grounds to believe that the claimant did not take rea- sonable measures to mitigate the loss for which the claim has been filed; (e) whether the claimant’s loss has been mitigated; and (f) whether the conditions imposed on the claimant under subsection 105(1.2), if any, have been met. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION A Marine Liability Act Section 336 Page 257 Result of investigation and reassessment 106.04 (1) As soon as feasible after completing the in- vestigation and reassessment, the Administrator must give the claimant notice that (a) the Administrator will take no further action in re- spect of whatever portion of the claim was the subject of the investigation and reassessment; (b) the claimant is required to pay to the Administra- tor the overpayment set out in the notice, in the man- ner and within the period set out in the notice; or (c) an additional payment, equal to the amount of the loss, costs or expenses suffered or incurred by the claimant minus the sum of any amounts already paid to the claimant, is to be made to the claimant without delay out of the Ship-source Oil Pollution Fund. Appeal to Admiralty Court (2) A claimant may, within 60 days after receiving a no- tice under paragraph (1)(b), appeal to the Admiralty Court the requirement to pay the overpayment set out in the notice. Debts due to His Majesty 106.05 All amounts payable under subsection 106.02(3) and overpayments payable under paragraph 106.04(1)(b) constitute debts due to His Majesty in right of Canada that may be recovered in a court of competent jurisdic- tion from the person who is required to pay them. 337 Paragraph 106.1(4)(a) of the English version of the Act is replaced by the following: (a) if oil pollution damage occurs, within one year af- ter the day of the occurrence that causes that damage; or 338 The heading before section 107 and sections 107 and 108 of the Act are repealed. 339 (1) Subsections 111.1(2) and (3) of the Act are replaced by the following: Offer of compensation less than zero (2) If the offer of compensation made by the Administra- tor to the Minister of Fisheries and Oceans under para- graph 105(1)(a) is less than zero, then, unless that Minis- ter appeals the offer under subsection 106(2), an amount equal to the amount of the offer is to be credited to the Ship-source Oil Pollution Fund, out of appropriations for the Department of Fisheries and Oceans under an appro- priation Act, within six months after the day on which 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION A Marine Liability Act Sections 336-339 Page 258 that Minister receives the offer or within any longer peri- od agreed to by the Administrator and that Minister. Offer of compensation refused (3) If the Minister of Fisheries and Oceans refuses the of- fer of compensation made under paragraph 105(1)(a), then, as soon as feasible after that Minister refuses the offer, an amount equal to the amount of the emergency funds charged to the Ship-source Oil Pollution Fund un- der subsection 110(1) or (2) is to be credited to the Ship- source Oil Pollution Fund, out of appropriations for the Department of Fisheries and Oceans under an appropria- tion Act, less any unused portion of the emergency funds credited to the Ship-source Oil Pollution Fund under subsection (1). (2) The description of A in subsection 111.1(4) of the Act is replaced by the following: A is the portion of the claim that the Administrator finds to be established under subsection 105(1); 340 (1) The portion of paragraph 116(2)(b) of the Act before subparagraph (i) is replaced by the following: (b) if the claim is based on subsection 51(1) or 71(1) or paragraph 77(1)(b) or (c), or on Article III of the Civil Liability Convention or Article 3 of the Bunkers Con- vention as they pertain to preventive measures, (2) Subsection 116(2) of the Act is amended by adding “or” at the end of paragraph (a), by strik- ing out “or” at the end of paragraph (b) and by repealing paragraph (c). 341 Schedule 4 to the Act is repealed. Transitional Provisions Definitions 342 The following definitions apply in sections 343 to 347. former Act means the Marine Liability Act as it read immediately before the day on which sec- tion 338 comes into force. (ancienne loi) new Act means the Marine Liability Act as it reads on the day on which section 338 comes into force. (nouvelle loi) 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION A Marine Liability Act Sections 339-342 Page 259 Ship-source Oil Pollution Fund has the same mean- ing as in subsection 91(1) of the Marine Liability Act. (Caisse d’indemnisation) Claims for loss of income 343 A claim filed under section 107 of the former Act is to be dealt with in accordance with sec- tions 107 and 108 of the former Act. Rights — limitation period 344 Despite subsection 103(2) of the new Act, if an occurrence in respect of which a person may file a claim under section 107 of the former Act takes place on or before the day on which section 338 comes into force, and if the limitation periods set out in subsection 107(3) of the former Act have not expired on that day, that person has the right to file a claim under subsection 103(1.2) of the new Act within those limitation periods. Fund — amounts directed to be paid 345 Any amounts that are directed to be paid on or after the day on which subsection 332(2) comes into force, in respect of a claim filed under sec- tion 107 of the former Act, are to be charged to the Ship-source Oil Pollution Fund and they are deemed to be charged under paragraph 92(3)(a.1) of the new Act. Fund — remuneration and expenses of assessors 346 The remuneration and expenses of assessors appointed under paragraph 108(2)(a) of the for- mer Act that are directed to be paid on or after the day on which subsection 332(3) comes into force are to be charged to the Ship-source Oil Pollution Fund and are deemed to be charged un- der subsection 92(3) of the new Act. Interest 347 If a payment is made to a claimant on or af- ter the day on which subsection 340(2) comes into force, in respect of a claim filed under section 107 of the former Act, the claimant is entitled to the interest that accrues on a claim in accordance with subsection 116(1) of the Marine Liability Act from the time when the loss of income occurs. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION A Marine Liability Act Sections 342-347 Page 260 Coordinating Amendments 2014, c. 29 348 (1) In this section, other Act means the Safe- guarding Canada’s Seas and Skies Act. (2) On the first day on which both section 33 of the other Act and section 313 of this Act are in force, paragraph 33(1)(a.1) of the Marine Liabili- ty Act is replaced by the following: (a.1) permitting that person to reduce the amount that they are required to pay to the fund by up to an amount equal to the sum of any amounts paid to a claimant before the constitution of the fund in respect of a maritime claim for oil pollution damage caused by bunker oil as defined in paragraph 5 of Article 1 of the Bunkers Convention as defined in subsection 47(1); (3) On the first day on which both section 33 of the other Act and section 324 of this Act are in force, subsection 74.26(1) of the Marine Liability Act is amended by striking out “and” at the end of paragraph (a) and by adding the following af- ter that paragraph: (a.1) permitting that person to reduce the amount that they are required to pay to the fund by up to an amount equal to the sum of any amounts paid to a claimant before the constitution of the fund; and (4) On the first day on which both section 33 of the other Act and section 325 of this Act are in force, subsections 74.27(1) and (2) of the Marine Liability Act are replaced by the following: Public notice 74.27 (1) The person constituting the fund must, as soon as feasible, give notice of the fund’s constitution in (a) the Canada Gazette; (b) a newspaper in general circulation in the region where the incident occurred; and (c) any other appropriate manner in the communities potentially affected by the incident. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION A Marine Liability Act Section 348 Page 261 Accessibility (1.1) Notices given under paragraphs (1)(b) and (c) are to be made accessible to the public for a period of at least 30 days. Proof of accessibility (2) The person constituting the fund must, within 15 days after the 30th day of the period referred to in sub- section (1.1), file evidence in the Admiralty Court that the notices have been made accessible to the public for a pe- riod of at least 30 days. (5) On the first day on which both subsection 45(1) of the other Act and subsection 335(3) of this Act are in force, paragraph 106(3)(b) of the Ma- rine Liability Act is replaced by the following: (b) the claimant is then precluded from pursuing any rights that they may have had, other than in relation to damage as defined in paragraph 6(a) of Article 1 of the Hazardous and Noxious Substances Convention, against any person in respect of matters referred to in sections 51, 71, 74.24 and 77, Article III of the Civil Lia- bility Convention, Article 3 of the Bunkers Convention and Article 7 of the Hazardous and Noxious Sub- stances Convention in relation to the occurrence to which the offer of compensation relates, except that (i) with respect to the acceptance of an offer of compensation made under paragraph 105(1)(a), the claimant may pursue any rights that they may have under subsection 103(1.2) in a single claim, and (ii) with respect to the acceptance of an offer of compensation made under paragraph 105(1.1)(a) or (b), the claimant may pursue any rights that they may have under subsection 103(1) or (1.1) in a sin- gle claim; (6) On the first day on which both subsection 49(2) of the other Act and subsection 340(1) of this Act are in force, the portion of paragraph 116(2)(b) of the Marine Liability Act before sub- paragraph (i) is replaced by the following: (b) if the claim is based on subsection 51(1), 71(1) or 74.24(1) or paragraph 77(1)(b) or (c), or on Article III of the Civil Liability Convention, Article 3 of the Bunkers Convention or Article 7 of the Hazardous and Noxious Substances Convention as they pertain to preventive measures, 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION A Marine Liability Act Section 348 Page 262 2018, c. 27 349 (1) In this section, other Act means the Bud- get Implementation Act, 2018, No. 2. (2) On the first day on which both section 323 of this Act is in force and subsection 746(2) of the other Act has produced its effects, section 74.24 of the Marine Liability Act is amended by adding the following after subsection (2): Liability — fishing, hunting, trapping and harvesting (3) For greater certainty, for the purposes of Article 7 of the Hazardous and Noxious Substances Convention, the liability of the owner of a ship includes economic loss in relation to the exercise of fishing, hunting, trapping or harvesting rights recognized and affirmed by section 35 of the Constitution Act, 1982 suffered by an Indigenous group, community or people that holds those rights or suffered by a member of such a group, community or people. (3) On the first day on which both subsection 333(3) of this Act is in force and subsection 746(8) of the other Act has produced its effects, subsec- tion 103(3) of the Marine Liability Act is replaced by the following: Exception (3) Subsections (1) to (1.2) do not apply to a person in a state other than Canada, and subsections (1) and (1.1) do not apply to a response organization referred to in para- graph 51(1)(a), 71(1)(a), 74.24(1)(a) or 77(1)(b). SUBDIVISION B 2001, c. 26 Canada Shipping Act, 2001 Amendments to the Act 350 Section 2 of the Canada Shipping Act, 2001 is amended by adding the following in alphabetical order: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION A Marine Liability Act Sections 348-350 Page 263 hazardous and noxious substances handling facility means a facility that is used or that will be used in the loading or unloading of hazardous and noxious sub- stances to or from vessels. (installation de manuten- tion de substances nocives et potentiellement dange- reuses) port authority has the same meaning as in subsection 2(1) of the Canada Marine Act. (administration por- tuaire) 351 (1) The portion of section 8 of the Act before paragraph (a) is replaced by the following: Application of this Part 8 This Part applies in respect of Canadian vessels every- where, in respect of foreign vessels in Canadian waters, and in respect of pleasure craft that are not Canadian vessels but that are in Canadian waters or in waters in the exclusive economic zone of Canada. However (2) Paragraph 8(b) of the Act is replaced by the following: (b) subsections 10(2.1) and 35.1(1) also apply in re- spect of foreign vessels in waters in the exclusive eco- nomic zone of Canada. 352 (1) Paragraph 10(1)(c) of the Act is replaced by the following: (c) enter into agreements or arrangements respecting the administration or enforcement of any provision of this Act, the regulations or an interim order made un- der subsection 10.1(1) or (1.1) and authorize any per- son or organization — including a provincial govern- ment, a local authority and a government, council or other entity authorized to act on behalf of an Indige- nous group — with whom or which an agreement or arrangement is entered into to exercise the powers or perform the duties and functions under this Act that are specified in the agreement or arrangement. (2) Subsection 10(2) of the Act is replaced by the following: Exemption power of Ministers (2) The Minister of Transport or the Minister of Fish- eries and Oceans may, with respect to that Minister’s re- sponsibilities under this Act, exempt for a specified peri- od any authorized representative, person, class of per- sons, master, vessel, class of vessels, operator of an oil handling facility, oil handling facility or class of oil han- dling facilities, operator of a hazardous and noxious 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 350-352 Page 264 substances handling facility, hazardous and noxious sub- stances handling facility or class of hazardous and nox- ious substances handling facilities from the application of any provision of this Act, the regulations or an interim order made under subsection 10.1(1) or (1.1), subject to any conditions that that Minister considers appropriate, if that Minister is of the opinion that the exemption is in the interest of preventing damage to property or the envi- ronment or is in the public interest or interest of public health or safety. 353 (1) Section 10.1 of the Act is amended by adding the following after subsection (1): Authorization to make interim order (1.1) The Minister of Transport may, subject to any re- strictions or conditions that the Minister may specify, au- thorize the Deputy Minister of Transport to make, for the purpose referred to in subsection (1), an interim order that contains any provision that may be contained in a regulation made, under this Act, on the recommendation of only that Minister. (2) The portion of subsection 10.1(2) of the Act be- fore paragraph (a) is replaced by the following: Cessation of effect (2) An interim order made under this section has effect from the time that it is made or from any later date that may be specified in the interim order, but ceases to have effect on the earliest of (3) Paragraph 10.1(2)(c) of the Act is replaced by the following: (c) one year after the effective date of the interim or- der or any shorter period that may be specified in the interim order, unless the effective period is extended by the Minister of Transport or the Governor in Coun- cil; (c.1) the day that is specified in the order of the Min- ister of Transport extending the interim order, if the Minister extends the effective period of the interim or- der, unless the effective period is extended by the Gov- ernor in Council; and (4) Subsection 10.1(3) of the Act is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 352-353 Page 265 Extension — Minister of Transport (2.1) If the period specified in the interim order is less than one year, the Minister of Transport may extend the effective period of the interim order for a period that ends no more than one year after the effective date. Extension — Governor in Council (3) The Governor in Council may extend the effective pe- riod of the interim order for a period of no more than two years after the end of the applicable period referred to in paragraph (2)(c) or after the day referred to in paragraph (2)(c.1). (5) Subsection 10.1(6) of the Act is replaced by the following: Statutory Instruments Act (6) The Statutory Instruments Act does not apply to an interim order or an order extending the interim order. However, any such order must be published in the Canada Gazette within 23 days after it is made. 354 Subsection 12(1) of the Act is replaced by the following: Authorizing others to inspect 12 (1) The Minister of Transport may authorize any per- son, class of persons, classification society or other orga- nization to issue any Canadian maritime document under this Act or to carry out inspections under section 211 if the Minister determines that the person, class of persons, classification society or other organization is qualified to issue the document or carry out the inspection. 355 Subsections 14(2) and (3) of the Act are re- placed by the following: Qualified person, bare-boat charterer or owner (2) Subject to subsections (3) and (4), the authorized rep- resentative of a Canadian vessel is (a) in the case of a vessel whose owner has entered in- to an arrangement with a qualified person, including an operator of the vessel, under which they are re- sponsible for the matters referred to in subsection (1), the qualified person; (b) in the case of a vessel described in section 48, the bare-boat charterer; or (c) in any other case, the owner of the vessel. Representative if more than one owner (3) In the case of a Canadian vessel that is owned by more than one person, the owners must appoint as the 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 353-355 Page 266 authorized representative one of themselves or, in accor- dance with paragraph (2)(a), a qualified person. 356 Section 21 of the Act is replaced by the fol- lowing: Issuance of documents to foreign vessels 21 The Minister of Transport may, at the request of the government of a state to which an international conven- tion, protocol or resolution listed in Schedule 1 applies, issue in respect of a vessel registered in that state any document provided for by the convention, protocol or resolution, other than a Canadian maritime document, if the Minister is satisfied, in the same manner as in the case of a Canadian vessel, that the document may prop- erly be issued. A document issued under this section must contain a statement that it has been issued at the request of that government. 357 Subsection 26(1) of the Act is replaced by the following: Establishment 26 (1) For the purpose of ensuring the safety of the ma- rine industry, the Marine Technical Review Board is es- tablished to make decisions on applications for an ex- emption from, or the replacement of, any requirement under the regulations or an interim order made under subsection 10.1(1) or (1.1) in respect of a Canadian vessel or in respect of the issuance of a Canadian maritime doc- ument to a person, other than a requirement with respect to fees, charges, costs or expenses. 358 Subsection 28(1) of the Act is replaced by the following: Application 28 (1) Any person may, in respect of a requirement un- der the regulations or an interim order made under sub- section 10.1(1) or (1.1) that applies in respect of a Canadi- an vessel or in respect of the issuance of a Canadian mar- itime document to a person, apply to the Marine Techni- cal Review Board for a decision to exempt the applicant from the requirement or to replace it with another re- quirement. 359 (1) Section 32 of the Act is amended by adding the following after subsection (4): Material produced by Minister of Transport (4.01) A regulation made under paragraph 35.1(1)(k), 120(1)(f) or (k), 136(1)(a), (f) or (g) or 190(1)(a) may in- corporate by reference material that the Minister of Transport produces. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 355-359 Page 267 (2) Subsection 32(5) of the Act is replaced by the following: Scope of incorporation (5) Material referred to in subsections (1) to (4.01) may be incorporated by reference as amended from time to time or as it exists on a particular date. Material referred to in subsection (4.1) that is to be incorporated by refer- ence must be incorporated as it exists on a particular date. 360 (1) Subparagraph 35(1)(d)(i) of the Act is re- placed by the following: (i) implementing it in respect of persons, vessels, oil handling facilities or hazardous and noxious substances handling facilities to which it does not apply, (2) Paragraph 35(1)(g) of the Act is replaced by the following: (g) respecting fees, charges, costs and expenses to be paid in relation to (i) the administration of this Part or Part 2 (Regis- tration, Listing and Recording), 3 (Personnel), 4 (Safety), 6 (Incidents, Accidents and Casualties), 8 (Pollution Prevention and Response — Department of Transport and Department of Fisheries and Oceans) to the extent that the Minister of Transport is responsible for that Part, 9 (Pollution Prevention — Department of Transport), 10 (Pleasure Craft), 11 (Enforcement — Department of Transport) or 12 (Miscellaneous) to the extent that the Minister of Transport is responsible for that Part or the regula- tions made under any of those Parts or under sub- section 136(1), including the development of those regulations, and (ii) the enforcement of any of those Parts or regula- tions; 361 The heading before section 36 of the Act is replaced by the following: Fees, Charges, Costs and Expenses 362 Subsections 36(1) to (3) of the Act are re- placed by the following: Debt due to His Majesty 36 (1) All fees, charges, costs and expenses imposed un- der paragraph 35(1)(g) or (3)(d) and interest payable on 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 359-362 Page 268 them constitute a debt due to His Majesty in right of Canada and may be recovered in any court of competent jurisdiction. Payment (2) If a fee, charge, cost or expense is imposed under paragraph 35(1)(g) or (3)(d) (a) in respect of a pleasure craft that is not a Canadian vessel, its owner is liable for payment of the fee, charge, cost or expense and any interest payable on it; (b) in respect of a Canadian vessel, the authorized representative, the owner and the master are jointly and severally, or solidarily, liable for payment of the fee, charge, cost or expense and any interest payable on it; and (c) in respect of a foreign vessel, its owner and the au- thorized representative are jointly and severally, or solidarily, liable for payment of the fee, charge, cost or expense and any interest payable on it. Seizure (3) If the amount of a fee, charge, cost or expense, or of interest due on it, owed by an authorized representative or owner of a Canadian vessel or by the owner of a for- eign vessel, has not been paid, the Minister who recom- mended making the regulation under paragraph 35(1)(g) or (3)(d) may, in addition to any other remedy available for the collection of the amount and whether or not a judgment for the collection of the amount has been ob- tained, apply to the Federal Court for an order authoriz- ing that Minister to seize, detain and sell any vessel be- longing to the authorized representative or the owner, as the case may be. The Court may make the order on the terms that the Court considers appropriate. 363 Subsection 36.01(1) of the Act is replaced by the following: Agreement — cost recovery 36.01 (1) The Minister of Transport may enter into an agreement with any person or organization respecting any matter for which a regulation made under paragraph 35(1)(g) could prescribe a fee, charge, cost or expense. 364 Section 38 of the Act is replaced by the fol- lowing: Contravention of regulations 38 (1) Every person who, or vessel, oil handling facility or hazardous and noxious substances handling facility that, contravenes a provision of the regulations made un- der paragraph 35(1)(d) or (3)(a) commits an offence and 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 362-364 Page 269 is liable on summary conviction to a fine of not more than $1,000,000 or to imprisonment for a term of not more than 18 months, or to both. Exception (2) If a court sentencing a person, vessel, oil handling fa- cility or hazardous and noxious substances handling fa- cility under subsection (1) for contravening a provision of the regulations made under paragraph 35(1)(d) or (3)(a) is of the opinion that the provision that the person, vessel or facility contravened is equivalent to a provision of the regulations made under another provision of this Act and if the punishment provided under this Act for contraven- ing that provision of the regulations is less than the pun- ishment provided under subsection (1), the person, ves- sel, oil handling facility or hazardous and noxious sub- stances handling facility is liable to that lesser punish- ment. 365 Subsection 40(2) of the Act is replaced by the following: Punishment (2) Every person who, or vessel that, commits an offence under subsection (1) is liable on summary conviction to a fine of not more than $25,000. 366 Section 56 of the Act is replaced by the fol- lowing: Lost certificates 56 If a certificate of registry or provisional certificate is mislaid, lost or destroyed, the Chief Registrar must issue a replacement certificate of registry or provisional certifi- cate, as the case may be, on application made by the au- thorized representative or owner in the form and manner and including the information and accompanied by the documents specified by the Chief Registrar. Refusal to issue, renew or amend certificate 56.1 Despite any other provision of this Act, the Chief Registrar may refuse to issue, in respect of a vessel, a cer- tificate of registry, a provisional certificate or a replace- ment certificate of registry or provisional certificate, or to renew a certificate of registry or to amend one under paragraph 73(b), if the applicant for, or holder of, the cer- tificate is in default of payment of a required fee, charge, cost or expense under this Act or the Wrecked, Aban- doned or Hazardous Vessels Act in respect of that vessel. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 364-366 Page 270 367 Subsections 75.03(5) and (6) of the Act are re- placed by the following: Authorized representative of fleet (5) The authorized representative of a fleet is the autho- rized representative, as determined under section 14, of the vessels of that fleet and must be the same authorized representative for all of the fleet’s vessels. 368 The Act is amended by adding the following after section 75.03: Refusal to issue, renew or amend certificate 75.031 Despite any other provision of this Act, the Chief Registrar may refuse to issue or renew a certificate of registry in respect of a fleet, or to amend one under para- graph 75.14(b), if the applicant for, or holder of, the cer- tificate is in default of payment of a required fee, charge, cost or expense in respect of that fleet or a vessel of that fleet under this Act or the Wrecked, Abandoned or Haz- ardous Vessels Act. 369 Subsection 79(2) of the Act is replaced by the following: Punishment (2) Every person who commits an offence under subsec- tion (1) is liable on summary conviction to a fine of not more than $25,000. 370 Section 99 of the English version of the Act is replaced by the following: Adjudication by Minister 99 The Minister may, on the request of the authorized representative or a crew member of a Canadian vessel, adjudicate any dispute between the authorized represen- tative and crew member that arises under this Part. The Minister’s decision is binding on the parties. 371 Subsection 103(2) of the Act is replaced by the following: Punishment (2) Every person who commits an offence under subsec- tion (1) is liable on summary conviction to a fine of not more than $25,000. 372 Subsection 110(1) of the Act is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 366-372 Page 271 Carrying excess number of persons 110 (1) The master of a vessel must ensure that the number of persons carried on board is not more than the number of persons authorized to be on board under any certificate issued under this Part or under an internation- al convention, protocol or resolution listed in Schedule 1. 373 Section 111 of the Act is replaced by the fol- lowing: Direction to cease — master 111 (1) The Minister may direct a master to cease any operation that, in the Minister’s opinion, poses an undue risk because of unsafe conditions. Direction to take measures — master (2) The Minister may direct a master to take measures that, in the Minister’s opinion, are necessary to avoid an undue risk because of unsafe conditions, including a di- rection to (a) provide the Minister with any information that the Minister considers appropriate to assess or deal with risks to marine safety; (b) proceed by the route and in the manner that the Minister specifies; and (c) proceed to a place that the Minister selects, by the route and in the manner that the Minister specifies, and (i) unload the vessel’s cargo, or (ii) moor, anchor or remain there for any reason- able period that the Minister specifies. Direction to authorize vessel (3) The Minister may direct a port authority or a person in charge of a port authority or place to authorize a vessel in respect of which a direction has been made under paragraph (2)(c) to proceed to the place selected by the Minister and to (a) unload the cargo; or (b) moor, anchor or remain there for any reasonable period that the Minister may specify. 374 Section 114 of the Act is replaced by the fol- lowing: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 372-374 Page 272 Direction to cease — crew 114 (1) The Minister may direct a crew member on board a vessel to cease any operation that, in the Minis- ter’s opinion, poses an undue risk because of unsafe con- ditions. Direction to take measures — crew (2) The Minister may direct a crew member on board a vessel to take measures that, in the Minister’s opinion, are necessary to avoid an undue risk because of unsafe conditions, including a direction to provide the Minister with any information that the Minister considers appro- priate to support assessing or addressing risks to marine safety. 375 Subsection 120(1) of the Act is amended by striking out “and” at the end of paragraph (s) and by adding the following after that paragraph: (s.1) respecting arrangements for emergency services, including requiring vessels or classes of vessels to en- ter into such arrangements; and 376 (1) Paragraph 121(1)(f) of the Act is replaced by the following: (f) section 107 (obtain Canadian maritime docu- ments); (2) Paragraph 121(1)(j) of the Act is replaced by the following: (j) a direction given under subsection 111(1) (direc- tion to cease — master); (j.1) a direction given under subsection 111(2) (direc- tion to take measures — master); (j.2) a direction given under subsection 111(3) (direc- tion to authorize vessel); (3) Subsection 121(1) of the Act is amended by adding the following after paragraph (o): (o.1) a direction given under subsection 114(2) (direc- tion to take measures — crew); 377 Paragraph 123(1)(a) of the Act is replaced by the following: (a) a direction given under subsection 114(1) (direc- tion to cease — crew); 378 Section 129 of the French version of the Act is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 374-378 Page 273 Obligation d’informer des dommages 129 (1) Dans le cas où le bâtiment — ou tout objet à sa remorque — renverse, déplace, endommage ou détruit une aide à la navigation dans les eaux canadiennes, la personne responsable du bâtiment en informe sans délai l’officier chargé des services de communications et de trafic maritimes ou, si cela n’est pas possible, un membre de la garde côtière canadienne. Obligation d’informer en cas de danger pour la navigation (2) Si elle constate l’existence dans les eaux canadiennes d’un danger pour la navigation non indiqué sur les cartes marines ou l’absence, le déplacement ou le mauvais fonc- tionnement d’une aide à la navigation, la personne res- ponsable du bâtiment en informe sans délai l’officier chargé des services de communications et de trafic mari- times ou, si cela n’est pas possible, un membre de la garde côtière canadienne. 379 The portion of subsection 130(2) of the Act before paragraph (a) is replaced by the follow- ing: Powers — search and rescue mission coordinators (2) On being informed that a person, a vessel or an air- craft is in distress or is missing in Canadian waters, in the exclusive economic zone of Canada or on the high seas off any of the coasts of Canada under circumstances that indicate that they may be in distress, a search and rescue mission coordinator may 380 Subsection 135(2) of the Act is replaced by the following: Designation — Minister of Transport (1.1) The Minister of Transport may designate any per- son or class of persons for the purposes of enforcing a provision of this Part or of a regulation made under this Part that the Minister of Transport is responsible for ad- ministering. Stopping and boarding vessel (2) A person, or a member of a class of persons, desig- nated under subsection (1) or (1.1) who has reasonable grounds to believe that an offence has been committed or is about to be committed under this Part by a vessel or any person on board a vessel may stop and board the ves- sel and take any reasonable action to ensure public safety or protect the public interest. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 378-380 Page 274 381 Section 136 of the Act is amended by adding the following after subsection (2): Order — Minister of Transport (3) The Minister of Transport may, by order, suspend or modify the operation of regulations made under para- graph (1)(f) or (g). Cessation of effect of order (4) An order made under subsection (3) has effect from the time that it is made or from any later date that may be specified in the order but ceases to have effect on the earliest of (a) the day on which it is repealed; (b) the day on which a regulation made under this Act that has the same effect as the order comes into force; and (c) two years after the effective date of the order or any shorter period that may be specified in the order. Statutory Instruments Act (5) The Statutory Instruments Act does not apply to an order made under subsection (3). However, the order must be published in the Canada Gazette within 23 days after it is made. 382 Subsection 152(2) of the Act is replaced by the following: Punishment (2) Every person who commits an offence under subsec- tion (1) is liable on summary conviction to a fine of not more than $25,000. 383 (1) The definitions discharge, pollutant and pollution damage in section 165 of the Act are re- placed by the following: discharge means a discharge of a pollutant from a ves- sel, or a discharge of oil from an oil handling facility or of a hazardous and noxious substance from a hazardous and noxious substances handling facility if the facility is engaged in loading to or unloading from a vessel, that di- rectly or indirectly results in the pollutant entering the water, and includes spilling, leaking, pumping, pouring, emitting, emptying, throwing and dumping. (rejet) pollutant means 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 381-383 Page 275 (a) a substance that, if added to any waters, would de- grade or alter or form part of a process of degradation or alteration of the quality of the waters to an extent that is detrimental to their use by humans or by an an- imal or a plant that is useful to humans; and (b) any water that contains a substance in such a quantity or concentration, or that has been so treated, processed or changed, by heat or other means, from a natural state, that it would, if added to any waters, de- grade or alter or form part of a process of degradation or alteration of the quality of the waters to an extent that is detrimental to their use by humans or by an an- imal or a plant that is useful to humans. It includes oil, hazardous and noxious substances and any substance or class of substances that is prescribed for the purpose of this Part to be a pollutant. (polluant) pollution damage in relation to a vessel, an oil handling facility or a hazardous and noxious substances facility, means loss or damage outside the vessel or facility caused by contamination resulting from a discharge from the vessel or facility. (dommages dus à la pollution) (2) Section 165 of the Act is amended by adding the following in alphabetical order: hazardous and noxious substance means a substance other than oil that, if introduced into the marine environ- ment, is likely to create hazards to human health, harm living resources and marine life, damage amenities or in- terfere with legitimate uses of the marine environment. (substance nocive et potentiellement dangereuse) hazardous and noxious substances pollution incident means any occurrence or series of occurrences having the same origin, including fire or explosion, that results or may result in a discharge of hazardous and noxious sub- stances. (événement de pollution par les substances nocives et potentiellement dangereuses) 384 Subsection 166(1) of the Act is replaced by the following: Application 166 (1) Except as otherwise provided in this Part, this Part applies in respect of vessels in Canadian waters or 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 383-384 Page 276 waters in the exclusive economic zone of Canada and in respect of oil handling facilities and hazardous and nox- ious substances handling facilities that are in Canada. 385 Section 167.1 of the Act and the heading be- fore it are replaced by the following: Oil Handling Facilities and Hazardous and Noxious Substances Handling Facilities Notification of proposed operations 167.1 Subject to the regulations, a person who proposes to operate an oil handling facility or a hazardous and noxious substances handling facility of a class established by the regulations must, within the prescribed time, noti- fy the Minister of the proposed operations relating to the loading or unloading of oil or hazardous and noxious substances to or from vessels and must submit to the Minister any information or documents required by the regulations and, within the time specified by the Minis- ter, any information or documents requested by the Min- ister. 386 (1) Subsection 167.2(1) of the Act is replaced by the following: Submission of plans 167.2 (1) Subject to the regulations, a person who pro- poses to operate an oil handling facility or a hazardous and noxious substances handling facility of a class estab- lished by the regulations must, at least 90 days before the day on which the facility’s operations relating to the load- ing or unloading of oil or hazardous and noxious sub- stances to or from vessels will begin — or within any oth- er time specified by the Minister — submit to the Minis- ter (a) an oil pollution prevention plan or hazardous and noxious substances pollution prevention plan that meets the requirements set out in the regulations to prevent a discharge of oil or hazardous and noxious substances during the loading or unloading of a vessel; and (b) an oil pollution emergency plan or hazardous and noxious substances pollution emergency plan that meets the requirements set out in the regulations to respond to a discharge or possible discharge of oil or 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 384-386 Page 277 hazardous and noxious substances during the loading or unloading of a vessel. (2) Subsection 167.2(3) of the Act is replaced by the following: Prohibition against beginning operations (3) A person referred to in subsection (1) must not begin operations relating to the loading or unloading of oil or hazardous and noxious substances to or from vessels un- less the plans submitted under subsection (1) meet the requirements set out in the regulations. 387 The Act is amended by adding the following after section 167.3: Notification — hazardous and noxious substances handling facilities 167.31 Subject to the regulations, the operator of a haz- ardous and noxious substances handling facility of a class established by the regulations must notify the Minister of the facility’s operations relating to the loading or unload- ing of hazardous and noxious substances to or from ves- sels within 90 days after the day on which this section comes into force and must submit to the Minister any in- formation or documents required by the regulations and, within the time specified by the Minister, any informa- tion or documents requested by the Minister. 388 Section 167.4 of the Act is replaced by the fol- lowing: Submission of plans 167.4 Subject to the regulations, unless the plans have already been submitted under subsection 167.2(1), the operator of an oil handling facility or a hazardous and noxious substances handling facility of a class established by the regulations must submit to the Minister, within the time set out in the regulations, an oil pollution pre- vention plan or hazardous and noxious substances pollu- tion prevention plan to prevent a discharge of oil or haz- ardous and noxious substances during the loading or un- loading of a vessel and an oil pollution emergency plan or hazardous and noxious substances pollution emergency plan to respond to a discharge or possible discharge of oil or hazardous and noxious substances during the loading or unloading of a vessel — which meet the requirements set out in the regulations — and must submit to the Min- ister any information or documents requested by the Minister, within the time specified by the Minister. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 386-388 Page 278 389 (1) Paragraph 168(1)(d) of the Act is replaced by the following: (d) have on site an up-to-date oil pollution emergency plan to respond to a discharge or possible discharge of oil during the loading or unloading of a vessel, which meets the requirements set out in the regulations; (2) Section 168 of the Act is amended by adding the following after subsection (1): Hazardous and noxious substances handling facilities — requirements (2) Subject to the regulations, the operator of a haz- ardous and noxious substances handling facility of a class established by the regulations must (a) have on site a declaration in the form specified by the Minister that describes the manner in which the operator will comply with the regulations made under paragraph 182(1)(a); (b) have on site an up-to-date hazardous and noxious substances pollution prevention plan to prevent a dis- charge of hazardous and noxious substances during the loading or unloading of a vessel, which meets the requirements set out in the regulations; (c) submit the up-to-date hazardous and noxious sub- stances pollution prevention plan to the Minister with- in the time and in the circumstances set out in the reg- ulations; (d) have on site an up-to-date hazardous and noxious substances pollution emergency plan to respond to a discharge or possible discharge of hazardous and nox- ious substances during the loading or unloading of a vessel, which meets the requirements set out in the regulations; (e) submit the up-to-date hazardous and noxious sub- stances pollution emergency plan to the Minister with- in the time and in the circumstances set out in the reg- ulations; and (f) have the procedures, equipment and resources re- quired by the regulations available for immediate use in the event of a discharge of hazardous and noxious substances during the loading or unloading of a vessel. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 388-389 Page 279 (3) Section 168 of the Act is amended by adding the following after subsection (3): Reasonable measures — hazardous and noxious substances handling facilities (4) The operator of a hazardous and noxious substances handling facility referred to in subsection (2) must take reasonable measures to implement (a) the hazardous and noxious substances pollution prevention plan referred to in paragraph (2)(a); and (b) in respect of a hazardous and noxious substances pollution incident, the hazardous and noxious sub- stances pollution emergency plan referred to in para- graph (2)(b). 390 (1) Subsection 168.01(1) of the Act is replaced by the following: Notification of proposed change to operations (1) Subject to the regulations, an operator of an oil han- dling facility or a hazardous and noxious substances han- dling facility of a class established by the regulations that proposes to make a change, or permit a change to be made, to the facility’s operations relating to the loading or unloading of oil or hazardous and noxious substances to or from vessels must — at least 180 days before the day on which it makes the change or permits the change to be made — notify the Minister of the change, including any of the following changes: (a) a change in the facility’s transfer rate, if the change would result in the facility becoming part of a different class established by the regulations; (b) a change in the design of the facility or a change in the facility’s equipment; or (c) a change in the type or composition of oil that is, or hazardous and noxious substances that are, loaded or unloaded to or from vessels. (2) Subsection 168.01(3) of the Act is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 389-390 Page 280 Revise plans (3) The operator referred to in subsection (1) must revise the oil pollution prevention plan and the oil pollution emergency plan, or the hazardous and noxious sub- stances pollution prevention plan and the hazardous and noxious substances pollution emergency plan, and sub- mit the revised plans to the Minister at least 90 days be- fore making the change or permitting the change to be made, or within any other time specified by the Minister. 391 Section 168.1 of the Act is replaced by the fol- lowing: Update or revise plans 168.1 Despite any other provision of this Part or the regulations, the Minister may direct the operator of an oil handling facility to update or revise an oil pollution pre- vention plan or an oil pollution emergency plan, or the operator of a hazardous and noxious substances handling facility to update or revise a hazardous and noxious sub- stances pollution prevention plan or a hazardous and noxious substances pollution emergency plan, and to submit the up-to-date or revised plan to the Minister within the time specified by the Minister. 392 Section 168.3 of the Act is replaced by the fol- lowing: Minister may take measures 168.3 If the Minister believes on reasonable grounds that an oil handling facility has discharged, is discharging or may discharge oil or that the oil pollution prevention plan or the oil pollution emergency plan for the facility does not meet the requirements set out in the regula- tions, that a hazardous and noxious substances handling facility has discharged, is discharging or may discharge hazardous and noxious substances or that the hazardous and noxious substances pollution prevention plan or the hazardous and noxious substances pollution emergency plan for the facility does not meet the requirements set out in the regulations or that the operator of any of those facilities does not have the procedures, equipment and resources required by the regulations available for imme- diate use in the event of a discharge during the loading or unloading of a vessel, the Minister may (a) monitor the measures taken by any person to re- pair, remedy, minimize or prevent pollution damage from the facility; or 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 390-392 Page 281 (b) if the Minister considers it necessary, direct the operator of the facility to take the measures that the Minister considers necessary to repair, remedy, mini- mize or prevent pollution damage from the facility, in- cluding to stop loading or unloading oil or hazardous and noxious substances to or from vessels. 393 Paragraphs 175.1(1)(c) and (d) of the Act are replaced by the following: (c) direct a vessel that is required to have a shipboard oil pollution emergency plan or shipboard hazardous and noxious substances pollution emergency plan un- der the regulations to provide information concerning it and its implementation; (d) direct the operator of an oil handling facility or a hazardous and noxious substances handling facility to provide any document that the operator is required to have on site under this Part; and 394 (1) The portion of subsection 180(1) of the Act before paragraph (a) is replaced by the fol- lowing: Minister of Fisheries and Oceans — measures 180 (1) If the Minister of Fisheries and Oceans believes on reasonable grounds that a vessel, an oil handling facil- ity or a hazardous and noxious substances handling facil- ity has discharged, is discharging or may discharge a pol- lutant, that Minister may (2) Paragraphs 180(1)(a) to (c) of the English ver- sion of the Act are replaced by the following: (a) take the measures that that Minister considers necessary to repair, remedy, minimize or prevent pol- lution damage from the vessel or facility, including, in the case of a vessel, by removing — or by selling, dis- mantling, destroying or otherwise disposing of — the vessel or its contents; (b) monitor the measures taken by any person or ves- sel to repair, remedy, minimize or prevent pollution damage from the vessel or facility; or 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 392-394 Page 282 (c) if that Minister considers it necessary to do so, di- rect any person or vessel to take measures referred to in paragraph (a) or to refrain from doing so. (3) Subsection 180(3) of the Act is replaced by the following: Compensation (3) Compensation must be paid by His Majesty in right of Canada for the services of any person or vessel, other than the operator of a vessel, an oil handling facility or a hazardous and noxious substances handling facility that had discharged, was discharging or may have discharged a pollutant, that has complied with a direction issued un- der paragraph (1)(c). 395 Subsection 180.1(3) of the Act is replaced by the following: Use of property (3) If required, the Minister of Fisheries and Oceans or the pollution response officer may use property adjacent to or in the vicinity of a vessel, oil handling facility or hazardous and noxious substances handling facility — other than a dwelling-house — for the purposes of exer- cising their powers or performing their duties or func- tions under this Part, and any person accompanying that Minister or the pollution response officer may use such property to help that Minister or officer exercise their powers or perform their duties or functions under this Part. 396 (1) Paragraph 182(1)(a) of the Act is replaced by the following: (a) respecting the circumstances in which operators of oil handling facilities or hazardous and noxious sub- stances handling facilities must report discharges or anticipated discharges of pollutants, the manner of making the reports and the persons to whom the re- ports must be made; (2) Paragraphs 182(1)(d.1) and (d.2) of the Act are replaced by the following: (d.1) establishing classes of oil handling facilities or hazardous and noxious substances handling facilities and determining which of the requirements set out in sections 167.1 to 168.01 apply to the operators of, or to persons who propose to operate, oil handling facilities or hazardous and noxious substances handling facili- ties of each class; 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 394-396 Page 283 (d.2) respecting oil pollution prevention plans, oil pollution emergency plans, hazardous and noxious substances pollution prevention plans and hazardous and noxious substances pollution emergency plans, including the time within which the plans must be submitted to the Minister and the circumstances in which up-to-date plans must be submitted to the Min- ister; (3) Paragraph 182(1)(d.4) of the Act is replaced by the following: (d.4) respecting the information and documents re- ferred to in sections 167.1, 167.3 and 167.31 and sub- section 168.01(2), including the time within which the information and documents must be submitted to the Minister; (d.5) respecting the inclusion of the hazardous and noxious substances pollution emergency plan of a fa- cility that is both an oil handling facility and a haz- ardous and noxious substances handling facility with- in any other plan required under this Act; and (4) Subsection 182(2) of the Act is replaced by the following: Designation (2) Despite the regulations, the Minister may designate an oil handling facility or a hazardous and noxious sub- stances handling facility that is part of a class established by the regulations to be part of a different class estab- lished by the regulations or an oil handling facility or a hazardous and noxious substances handling facility that is not part of a class established by the regulations to be part of one of those classes. (5) Subsection 182(3) of the English version of the Act is replaced by the following: Notification (3) The Minister must notify the operator of a facility of any designation made in respect of it under subsection (2). 397 (1) Paragraph 183(1)(a.1) of the English ver- sion of the Act is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 396-397 Page 284 (a.1) subsection 167.2(1) (submission of prevention plan and emergency plan); (2) Subsection 183(1) of the Act is amended by adding the following after paragraph (c): (c.1) paragraph 168(2)(c) (submission of up-to-date date hazardous and noxious substances pollution pre- vention plan); (c.2) paragraph 168(2)(e) (submission of up-to-date date hazardous and noxious substances pollution emergency plan); (c.3) paragraph 168(2)(f) (have procedures, equip- ment and resources available for immediate use — hazardous and noxious substances); (3) Subsection 183(1) of the Act is amended by adding the following after paragraph (e): (e.001) paragraph 168(4)(a) (implement hazardous and noxious substances pollution prevention plan); (e.002) paragraph 168(4)(b) (implement hazardous and noxious substances pollution emergency plan); (4) Subsection 183(2) of the Act is replaced by the following: Contravention of regulations under paragraph 182(1)(a) (1.1) Every operator of an oil handling facility or haz- ardous and noxious substances handling facility who contravenes a provision of the regulations made under paragraph 182(1)(a) commits an offence. Punishment (2) Every person who, or vessel that, commits an offence under subsection (1) or (1.1) is liable on summary convic- tion to a fine of not more than $1,000,000 or to imprison- ment for a term of not more than 18 months, or to both. 398 (1) Subsection 184(1) of the Act is amended by adding the following after paragraph (a.3): 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 397-398 Page 285 (a.4) section 167.31 (notification — hazardous and noxious substances handling facilities); (2) Subsection 184(1) of the Act is amended by adding the following after paragraph (d): (d.001) paragraph 168(2)(a) (have a declaration on site — hazardous and noxious substances); (d.002) paragraph 168(2)(b) (have on site an up-to- date hazardous and noxious substances pollution pre- vention plan); (d.003) paragraph 168(2)(d) (have on site an up-to- date hazardous and noxious substances pollution emergency plan); (3) Paragraph 184(1)(o) of the Act is replaced by the following: (o) a provision of the regulations made under this Part other than a regulation made under paragraph 182(1)(a). 399 (1) The definition pollutant in section 185 of the Act is replaced by the following : pollutant means (a) a substance that, if added to any waters, would de- grade or alter or form part of a process of degradation or alteration of the quality of the waters to an extent that is detrimental to their use by humans or by an an- imal or a plant that is useful to humans; and (b) any water that contains a substance in such a quantity or concentration, or that has been so treated, processed or changed, by heat or other means, from a natural state, that it would, if added to any waters, de- grade or alter or form part of a process of degradation or alteration of the quality of the waters to an extent that is detrimental to their use by humans or by an an- imal or a plant that is useful to humans. It includes oil, hazardous and noxious substances and any substance or class of substances that is prescribed for the purpose of Part 8 (Pollution Prevention and Response — Department of Transport and Department of Fisheries and Oceans) to be a pollutant. (polluant) 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 398-399 Page 286 (2) Section 185 of the Act is amended by adding the following in alphabetical order: hazardous and noxious substance means a substance other than oil that, if introduced into the marine environ- ment, is likely to create hazards to human health, harm living resources and marine life, damage amenities or in- terfere with legitimate uses of the marine environment. (substance nocive et potentiellement dangereuse) hazardous and noxious substances pollution incident means any occurrence or series of occurrences having the same origin, including fire or explosion, that results or may result in a discharge of hazardous and noxious sub- stances. (événement de pollution par les substances nocives et potentiellement dangereuses) 400 The Act is amended by adding the following after section 186: Authorized Representatives General duties 186.1 (1) The authorized representative of a Canadian vessel must (a) ensure that the vessel and its machinery and equipment meet the requirements of the regulations made under this Part; (b) develop procedures for preventing the discharge of a pollutant and for dealing with emergencies; (c) ensure that the crew receives training in emergen- cy procedures; and (d) ensure that the crew and passengers receive train- ing in environmental protection. Duties — Canadian maritime documents inspection (2) The authorized representative of a Canadian vessel must ensure that (a) the vessel and its machinery and equipment are inspected for the purpose of obtaining all of the Cana- dian maritime documents that are required under this Part; and 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 399-400 Page 287 (b) every term or condition attached to a Canadian maritime document issued in respect of the vessel or its machinery or equipment is met. Masters Masters obtaining Canadian maritime documents 186.2 The master of a Canadian vessel must, before the vessel embarks on a voyage from a port in Canada, en- sure that all of the Canadian maritime documents re- quired under this Part have been obtained. Protection of marine environment 186.3 (1) The master of a vessel must take all reason- able measures to ensure the protection of the marine en- vironment. Duty to take reasonable measures (2) If the master of a vessel is informed that the vessel may have discharged, has discharged, is discharging or may discharge a pollutant, the master must take reason- able measures to protect the marine environment from the discharge or risk of discharge, including eliminating the risk if feasible. The master of a Canadian vessel must notify the authorized representative of the discharge or risk, unless the risk has been eliminated. 401 Section 188 of the Act is replaced by the fol- lowing: Implementation of pollution emergency plan 188 (1) If a vessel is required by the regulations to have a shipboard oil pollution emergency plan or shipboard hazardous and noxious substances pollution emergency plan, the vessel must take reasonable measures to imple- ment the plan in respect of an oil pollution incident or hazardous and noxious substances pollution incident. Notice to Minister (2) If a vessel is required by the regulations to have a shipboard oil pollution emergency plan or shipboard haz- ardous and noxious substances pollution emergency plan, the owner or authorized representative of the vessel must notify the Minister, in the form and manner that the Minister specifies, of the identity of the person who, in accordance with the regulations, is responsible for im- plementing the vessel’s plan. 402 (1) Section 189 of the Act is renumbered as subsection 189(1). 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 400-402 Page 288 (2) Subsection 189(1) of the Act is amended by adding the following after paragraph (a.1): (a.2) direct a vessel that is required to have a ship- board hazardous and noxious substances pollution emergency plan under the regulations to provide him or her with any information concerning it and its im- plementation; (3) The portion of paragraph 189(1)(d) of the French version of the Act before subparagraph (i) is replaced by the following: d) ordonner au bâtiment de se rendre, de la façon et par la route qu’il spécifie, au lieu qu’il précise et, selon le cas : (4) Section 189 of the Act is amended by adding the following after subsection (1): Direction to authorize vessel (2) The Minister may direct a port authority or a person in charge of a port authority or place to authorize a vessel in respect of which a direction has been made under paragraph (1)(d) to proceed to the place selected by the Minister and to (a) unload the pollutant; or (b) moor, anchor or remain there for any reasonable period that the Minister may specify. 403 (1) Paragraph 190(1)(a) of the Act is replaced by the following: (a) prescribing pollutants for the purpose of section 187 and subsection 189(1) and respecting the circum- stances in which such pollutants may be discharged; (2) Subsection 190(1) of the Act is amended by striking out “and” at the end of paragraph (l), by adding “and” at the end of paragraph (m) and by adding the following after paragraph (m): (n) respecting shipboard hazardous and noxious sub- stances pollution emergency plans. 404 (1) Paragraph 191(1)(a) of the Act is replaced by the following: (a) paragraph 186.1(1)(a) (ensure vessel meets re- quirements); (a.1) paragraph 186.1(1)(b) (develop procedures); 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 402-404 Page 289 (a.2) paragraph 186.1(1)(c) (ensure emergency proce- dures training); (a.3) paragraph 186.1(1)(d) (ensure environmental protection training); (a.4) paragraph 186.1(2)(a) (ensure vessel inspected); (a.5) paragraph 186.1(2)(b) (ensure terms and condi- tions met); (a.6) section 186.2 (obtain Canadian maritime docu- ments); (a.7) subsection 186.3(1) (protection of marine envi- ronment); (a.8) subsection 186.3(2) (take reasonable measures); (a.9) section 187 (discharge of a pollutant); (2) Paragraph 191(1)(b) of the Act is replaced by the following: (b) subsection 188(1) (implement shipboard emergen- cy plan); (b.1) subsection 188(2) (notice to Minister — identity of qualified person); (3) Paragraph 191(1)(c) of the Act is replaced by the following: (c) a direction given under subparagraph 189(1)(d)(i) (direction to proceed to a place and unload a pollu- tant); (c.1) a direction given under subsection 189(2) (direc- tion to authorize a vessel); and 405 (1) Paragraph 192(1)(a) of the Act is replaced by the following: (a) a direction given under paragraph 189(1)(a) or (b) (direction to provide information); (a.1) a direction given under paragraph 189(1)(a.1) (direction to provide information — shipboard oil pol- lution emergency plan); (2) Subsection 192(1) of the Act is amended by adding the following after paragraph (a.1): (a.2) a direction given under paragraph 189(1)(a.2) (direction to provide information — shipboard 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 404-405 Page 290 hazardous and noxious substances pollution emergen- cy plan); (3) Paragraphs 192(1)(b) and (c) of the Act are re- placed by the following: (b) a direction given under paragraph 189(1)(c) (direc- tion to proceed by a specified route); or (c) a direction given under subparagraph 189(1)(d)(ii) (direction to proceed to a place and remain there). 406 Section 194 of the Act is amended by adding the following in alphabetical order: pollutant means (a) a substance that, if added to any waters, would de- grade or alter or form part of a process of degradation or alteration of the quality of the waters to an extent that is detrimental to their use by humans or by an an- imal or a plant that is useful to humans; and (b) any water that contains a substance in such a quantity or concentration, or that has been so treated, processed or changed, by heat or other means, from a natural state, that it would, if added to any waters, de- grade or alter or form part of a process of degradation or alteration of the quality of the waters to an extent that is detrimental to their use by humans or by an an- imal or a plant that is useful to humans. It includes oil, hazardous and noxious substances and any substance or class of substances that is prescribed for the purpose of Part 8 (Pollution Prevention and Response — Department of Transport and Department of Fisheries and Oceans) to be a pollutant. (polluant) 407 Section 202 of the Act is replaced by the fol- lowing: Licensing of pleasure craft 202 (1) Subject to the regulations, if a pleasure craft is required by regulations made under this Part to be li- censed, the owner of the craft must not operate it, or per- mit it to be operated, unless it is licensed. Transfer of licence (2) Subject to the regulations, when the ownership of a pleasure craft referred to in subsection (1) changes, the new owner must not operate the craft, or permit it to be operated, until the licence for that craft is transferred to the new owner in accordance with the regulations. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 405-407 Page 291 408 The Act is amended by adding the following after section 203: Refusal to issue or transfer licence 203.1 Despite any other provision of this Act, the Minis- ter may refuse to issue — including by way of renewal — or transfer a licence for a pleasure craft or may refuse to issue a replacement licence if the applicant for, or holder of, the licence is in default of payment of a required fee, charge, cost or expense in respect of that pleasure craft under this Act or the Wrecked, Abandoned or Haz- ardous Vessels Act. 409 Paragraph 207(1)(k) of the French version of the Act is replaced by the following: k) concernant l’identification de la coque ou les nu- méros de série qui identifient les embarcations de plaisance; 410 Subsection 209(2) of the Act is replaced by the following: Punishment (2) Every person who commits an offence under subsec- tion (1) is liable on summary conviction to a fine of not more than $25,000. 411 The definition relevant provision in section 210 of the Act is replaced by the following: relevant provision means a provision of this Act or the regulations that the Minister is responsible for adminis- tering. (disposition visée) 412 (1) Subsection 211(3) of the French version of the Act is replaced by the following: Arraisonnement (3) Aux fins d’inspection, l’inspecteur peut ordonner au capitaine d’immobiliser son bâtiment ou de se rendre au lieu qu’il précise et de s’y amarrer à quai, de mouiller ou de rester à cet endroit pour la période raisonnable qu’il indique. (2) Section 211 of the Act is amended by adding the following after subsection (3): Direction to authorize vessel (3.1) A marine safety inspector may direct a port author- ity or a person in charge of a port authority or place to authorize a vessel in respect of which a direction has been made under subsection (3) to proceed to the place selected by the inspector and moor, anchor or remain 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 408-412 Page 292 there for any reasonable period that the inspector may specify. (3) Paragraphs 211(4)(d.1) and (e) of the Act are replaced by the following: (d.1) direct the operator of an oil handling facility or hazardous and noxious substances handling facility, or a person who proposes to operate such a facility, to carry out any emergency or safety procedure that is re- quired by the regulations or that is described in an oil pollution prevention plan, an oil pollution emergency plan, a hazardous and noxious substances pollution prevention plan or a hazardous and noxious sub- stances pollution emergency plan referred to in Part 8; (e) direct any person who is at the place where the in- spection is being carried out to produce for inspection, or for the purpose of making copies or taking extracts, any document that they are required to have, or that the operator of an oil handling facility or hazardous and noxious substances handling facility is required to have on site, under a relevant provision; 413 Subsection 222(11) of the Act is replaced by the following: Liability for expenses (11) The authorized representative and the owner of a vessel that is detained under this section are jointly and severally, or solidarily, liable for all expenses incurred in respect of the detained vessel. 414 Paragraph 224(c) of the Act is replaced by the following: (c) if a person to whom a direction is given under paragraph (b) does not comply with it and the Minis- ter is satisfied that the applicant for the direction has sufficient insurance in place to cover any incident that may arise from the moving of the vessel, authorize the applicant to move the vessel in accordance with the Minister’s directions and at the expense of the autho- rized representative and the owner of the vessel, for which the authorized representative and the owner are jointly and severally, or solidarily, liable for the ex- pense of moving the vessel. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 412-414 Page 293 415 (1) Subsection 226(2) of the Act is replaced by the following: Vessel may be seized and sold if fine or penalty not paid (2) At any time after a fine is imposed under a relevant provision against, or a certificate is registered in the Fed- eral Court under subsection 235(2) in respect of, a vessel, its authorized representative or its owner, the Minister may, while the fine or debt remains unpaid, seize the ves- sel and, after giving notice to the authorized representa- tive or owner, sell it and, by bill of sale, give the purchas- er a valid title to the vessel free from any mortgage or other claim on the vessel that exists at the time of the sale. (2) Paragraph 226(4)(a) of the Act is replaced by the following: (a) the authorized representative and the owner, jointly and severally, or solidarily, in the case of a Canadian vessel; and 416 The portion of subsection 227(1) of the Act before paragraph (a) is replaced by the follow- ing: Minister’s powers 227 (1) If the Minister has reasonable grounds to be- lieve that a foreign vessel is in contravention of an inter- national convention, protocol or resolution listed in Schedule 1, the Minister may 417 Section 240 of the French version of the Act is replaced by the following: Registre public 240 Le ministre tient un registre public des procès-ver- baux ou avis de défaut au dossier d’une personne ou d’un bâtiment. 418 (1) The portion of subsection 245(1) of the Act before paragraph (a) is replaced by the fol- lowing: Contravention of Act 245 (1) Every person who, or vessel that, contravenes any of the following commits an offence: (2) Subsection 245(1) of the Act is amended by adding the following after paragraph (a): 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 415-418 Page 294 (a.1) a direction given under subsection 211(3.1) (di- rection to authorize a vessel); (3) Subsection 245(2) of the English version of the Act is replaced by the following: Punishment (2) Every person who, or vessel that, commits an offence under subsection (1) is liable on summary conviction to a fine of not more than $1,000,000 or to imprisonment for a term of not more than 18 months, or to both. 419 Paragraph 269(1)(b) of the Act is replaced by the following: (b) tranship in Canadian waters, in the exclusive eco- nomic zone of Canada or on the high seas such an arti- cle from a Canadian vessel to any vessel bound for such a territory; 420 The portion of section 272 of the French ver- sion of the Act before paragraph (a) is replaced by the following: Droits acquis — bâtiments titulaires de permis 272 Les bâtiments, à l’exception des embarca- tions de plaisance, qui sont titulaires d’un permis délivré sous le régime de l’article 108 de la Loi sur la marine marchande du Canada, chapitre S-9 des Lois révisées du Canada (1985), à l’entrée en vigueur de la partie 2 sont réputés être inscrits dans la partie du registre sur les petits bâtiments mentionnée au paragraphe 43(1) : 421 The heading of Schedule 1 to the Act is re- placed by the following: International Conventions, Protocols and Resolutions — Minister of Transport 422 The heading of Schedule 2 to the Act is re- placed by the following: International Conventions, Protocols and Resolutions — Minister of Fisheries and Oceans 423 The French version of the Act is amended by replacing “fonctionnaire” with “officier”, with 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 418-423 Page 295 any necessary modifications, in the following provisions: (a) paragraph 126(1)(b), subsection 126(2), the portion of subsection 126(3) before paragraph (a) and paragraphs 126(4)(a) and (b) and (5)(a); and (f) subsection 265(1). Transitional Provisions Definition of Act 424 (1) In this section and sections 425 and 426, Act means the Canada Shipping Act, 2001. Words and expressions (2) Words and expressions used in sections 425 and 426 have the same meaning as in the Act. Information with respect to authorized representative 425 (1) If, during the period beginning on the day on which this section comes into force and ending on the day on which an application for the renewal of a vessel’s certificate of registry is made for the first time after that day, the owner enters into an arrangement referred to in para- graph 14(2)(a) of the Act, the authorized repre- sentative must, despite subsection 58(1) of the Act, notify the Chief Registrar of their name and address no later than the day on which that ap- plication is made. Contravention (2) Every person who contravenes subsection (1) commits an offence and is liable on summary conviction to a fine of not more than $25,000. Definition of transition period 426 (1) In this section, transition period means the period beginning on the day on which this section comes into force and ending on the day on which a regulation made under section 244 of the Act that designates a contravention of any of the provisions of the Act or regulations or direc- tions referred to in subsection (2) as a violation for the purposes of section 228 of the Act comes into force. Deemed violation (2) During the transition period, a contravention of any of the following is deemed to be a violation 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 423-426 Page 296 for the purposes of sections 229 to 243 of the Act and the provisions of any regulations made un- der section 244 of the Act: (a) a direction given under subsection 111(1), (2) or (3) of the Act; (b) a direction given under subsection 114(1) or (2) of the Act; (c) a provision of the regulations made under subsection 136(1) of the Act; (d) paragraph 186.1(1)(a), (b), (c) or (d) or (2)(a) or (b), section 186.2 or subsection 186.3(1) or (2) of the Act; (e) a direction given under paragraph 189(1)(a), (a.1), (b), (c) or (d) of the Act; (f) a direction given under subsection 189(2) of the Act; (g) subsection 197(1) or (2) or 198(2) of the Act; and (h) a direction given under subsection 211(3.1) of the Act. Range of penalties (3) The range of penalties in respect of a violation referred to in subsection (2) is $250 to $250,000. Continued violation (4) A violation referred to in subsection (2) con- stitutes a separate violation for each day on which it is continued. 2019, c. 26 Related Amendment to the Oil Tanker Moratorium Act 427 Subsection 5(2) of the Oil Tanker Moratori- um Act is replaced by the following: Exception — Canada Shipping Act, 2001 (2) Section 4 does not apply in respect of a vessel carry- ing out an activity in order to comply with a direction giv- en under subsection 111(2) or 114(2), paragraph 180(1)(c) or 189(1)(d) or subsection 211(3) of the Canada Shipping Act, 2001. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 426-427 Page 297 Coming into Force Order in council 428 Sections 364 and 385 to 388, subsections 389(2) and (3), sections 390 to 393, 396 to 398 and 401 and subsections 402(2), 404(2), 405(2) and 412(3) come into force on a day or days to be fixed by order of the Governor in Council. SUBDIVISION C 2019, c. 1 Wrecked, Abandoned or Hazardous Vessels Act Amendments to the Act 429 Subsection 6(1) of the English version of the Wrecked, Abandoned or Hazardous Vessels Act is replaced by the following: Agreements or arrangements 6 (1) The Minister or the Minister of Fisheries and Oceans may, with respect to that Minister’s powers, du- ties and functions under this Act, enter into agreements or arrangements for carrying out the purposes of this Act and authorize any person, including a provincial govern- ment, a local authority and a government, council or oth- er entity authorized to act on behalf of an Indigenous group, with whom an agreement or arrangement is en- tered into to exercise the powers — other than the power to make an order under section 11 — or perform the du- ties or functions under this Act that are specified in the agreement or arrangement. 430 The Act is amended by adding the following after section 14: Vessel Remediation Fund Fund established 14.1 (1) There is established in the accounts of Canada an account to be known as the Vessel Remediation Fund. Credits to Fund (2) There is to be paid into the Consolidated Revenue Fund and credited to the Vessel Remediation Fund (a) any amounts forfeited to His Majesty in right of Canada under subsection 41(2); 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION B Canada Shipping Act, 2001 Sections 428-430 Page 298 (b) the amounts of the debts referred to in any of paragraphs 99(1)(a) to (d) and 129(1)(a) to (c) and re- covered by His Majesty in right of Canada; (c) all amounts paid under regulations made under paragraph 130(1)(o.1); and (d) the amounts of all fines and penalties paid in re- spect of the commission of an offence or violation un- der this Act. Charges to Fund (3) There may be paid out of the Consolidated Revenue Fund and charged to the Vessel Remediation Fund all amounts required by the Minister or the Minister of Fish- eries and Oceans to (a) take measures under any of subsections 21(2) and (3), section 22, paragraphs 30(3)(a) to (c), sections 35 and 36 and subsections 37(3) and (4) and to pay com- pensation under section 44 or subsection 86(6); (b) promote public awareness of the responsibilities associated with vessel ownership; (c) fund research and development activities aimed at improving methods of recycling vessels and disposing of them in a manner that is environmentally responsi- ble; (d) fund research and development activities with re- spect to vessel and wreck remediation techniques; (e) increase capacity at the local level, including in In- digenous groups and communities, to perform vessel risk assessments and to recycle, dismantle or other- wise dispose of vessels; (f) fund voluntary vessel disposal activities in respect of dilapidated vessels, wrecks, abandoned vessels and vessels that pose, or may pose, a hazard, as well as in respect of vessels at risk of becoming dilapidated ves- sels, wrecks or abandoned, including for the purposes of repairing, securing, moving or removing the vessels, wrecks and their contents or selling, dismantling, de- stroying or otherwise disposing of them; (g) pay for the financial and program administration costs incurred in relation to the purposes referred to in paragraphs (a) to (f) and (h), other than the salaries of employees, as defined in subsection 2(1) of the Public Service Employment Act; and 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION C Wrecked, Abandoned or Hazardous Vessels Act Section 430 Page 299 (h) pay for the costs incurred in relation to any other purpose that the Governor in Council may, by order, specify and that relates to dilapidated vessels, wrecks, abandoned vessels or vessels that pose a hazard. Agreement (4) An amount paid out of the Consolidated Revenue Fund under subsection (3) must be in respect of a pur- pose that is set out in a plan for the use of the Vessel Re- mediation Fund that is agreed to by the Minister and the Minister of Fisheries and Oceans. Limit on payments (5) No payment is to be made out of the Consolidated Revenue Fund under this section in excess of the amount of the balance to the credit of the Vessel Remediation Fund. Definitions (6) In subsection (3), the expressions dilapidated ves- sel, hazard and wreck have the meanings assigned by section 27. 431 Section 41 of the Act is renumbered as sub- section 41(1) and is amended by adding the fol- lowing: Owner unknown or not located (2) If the owner referred to in subsection (1) is unknown or cannot be located, any amount that is to be paid to them under that subsection is forfeited to His Majesty in right of Canada. 432 (1) Paragraph 82(5)(b) of the Act is replaced by the following: (b) the amount and form of any security that is to be deposited with the Minister or the Minister of Fish- eries and Oceans. (2) Subsections 82(9) and (10) of the Act are re- placed by the following: Rescission of orders (9) An enforcement officer may rescind a detention order if, in their opinion, it would be in the public interest to do so. However, an enforcement officer must rescind a de- tention order if they are satisfied that the measures 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION C Wrecked, Abandoned or Hazardous Vessels Act Sections 430-432 Page 300 indicated in the notice referred to in subsection (5) have been taken and, if applicable, security in the amount and form indicated in the notice has been deposited with the Minister or the Minister of Fisheries and Oceans. Notice of rescission (10) An enforcement officer who rescinds a detention or- der must notify, in the form and manner specified by the Minister or the Minister of Fisheries and Oceans, the per- sons referred to in subsection (2) and the persons on whom the notice was served under paragraph (3)(a) of the rescission. (3) The portion of subsection 82(12) of the Act be- fore paragraph (a) is replaced by the following: Return of security (12) If, in the opinion of the Minister or the Minister of Fisheries and Oceans, the matter has been resolved, that Minister 433 Section 84 of the Act is replaced by the fol- lowing: Permission or direction to move vessel 84 (1) The Minister or the Minister of Fisheries and Oceans may, in respect of a vessel that is subject to a de- tention order, (a) on application made by the authorized representa- tive of the vessel or, in the absence of an authorized representative, the person in charge of the vessel, per- mit the vessel to be moved in accordance with the di- rections of the Minister or the Minister of Fisheries and Oceans; and (b) on application made by the owner of a dock or wharf — or by the person in charge of a place — at which the detained vessel is situated, direct the autho- rized representative or person in charge of the vessel to move it in accordance with the directions of the Minister or the Minister of Fisheries and Oceans. Non-compliance with paragraph (1)(b) (2) If a person does not comply with a direction given to them under paragraph (1)(b) and the Minister or the Minister of Fisheries and Oceans is satisfied that the ap- plicant for the direction has sufficient insurance in place to cover any incident that may arise from the moving of the vessel, the Minister or the Minister of Fisheries and Oceans may authorize the applicant to move the vessel in accordance with that Minister’s directions and at the ex- pense of the authorized representative or, in the absence of an authorized representative, the owner. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION C Wrecked, Abandoned or Hazardous Vessels Act Sections 432-433 Page 301 434 (1) Subsection 130(1) of the Act is amended by adding the following after paragraph (o): (o.1) respecting the fees, charges, costs and expenses — other than the fees referred to in paragraph (o) — to be paid in relation to the administration and enforce- ment of this Act; (2) Subsection 130(2) of the Act is replaced by the following: Debt due to His Majesty (2) All fees set under paragraph (1)(o) and all fees, charges, costs and expenses to be paid under paragraph (1)(o.1) constitute a debt due to His Majesty in right of Canada and may be recovered in any court of competent jurisdiction. (3) The portion of subsection 130(3) of the Act be- fore paragraph (a) is replaced by the following: Payment of fees, charges, costs or expenses (3) If a fee is imposed under paragraph (1)(o) or a fee, charge, cost or expense is to be paid under paragraph (1)(o.1) (4) Paragraphs 130(3)(a) to (c) of the English ver- sion of the Act are replaced by the following: (a) in respect of a pleasure craft that is not a Canadian vessel, its owner is liable for payment of the fee, charge, cost or expense; (b) in respect of a Canadian vessel, the authorized representative and the master are jointly and several- ly, or solidarily, liable for payment of the fee, charge, cost or expense; and (c) in respect of a vessel that is not a Canadian vessel, its owner and the authorized representative are jointly and severally, or solidarily, liable for payment of the fee, charge, cost or expense. (5) Section 130 of the Act is amended by adding the following after subsection (5): Exemption by Minister (6) The Minister may, on any terms and conditions that the Minister considers necessary, exempt any person or vessel, or class of persons or vessels, from the require- ment to pay any fee, charge, cost or expense under regu- lations made under paragraph (1)(o.1) if, in the opinion of the Minister, it is in the public interest to do so. The Minister may also cancel such an exemption. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION C Wrecked, Abandoned or Hazardous Vessels Act Section 434 Page 302 Statutory Instruments Act (7) An exemption made under subsection (6) and any cancellation of such an exemption are exempt from the application of sections 3, 5 and 11 of the Statutory In- struments Act. Coming into Force Order in council 435 (1) Section 430 comes into force on a day to be fixed by order of the Governor in Council, but that day must not be before the day referred to in subsection (2). Order in council (2) Section 431 comes into force on a day to be fixed by order of the Governor in Council. DIVISION 22 1996, c.10 Canada Transportation Act Amendments to the Act 436 The Canada Transportation Act is amended by adding the following after section 6.1: Designated person 6.11 The Governor in Council may, by regulations, des- ignate a person for the purposes of subsections 50(1.001) and (3) and 51(1), (3) and (4). 437 The Act is amended by adding the following after section 47: Regulations Performance data of air carriers 47.1 The Governor in Council may make regulations re- quiring air carriers to publish information respecting their performance on their Internet site. 438 The Act is amended by adding the following before the heading “Inquiries” before section 49: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 21 Oceans Protection Plan SUBDIVISION C Wrecked, Abandoned or Hazardous Vessels Act Sections 434-438 Page 303 Authorization Powers and duties 48 The Minister may, in writing, authorize any person designated by the Minister to exercise any of the powers and perform any of the duties of the Minister under this Act, either generally or otherwise provided in the instru- ment of authorization. Fees and Charges Regulations 48.1 The Minister may make regulations respecting fees and charges to be paid to the Minister in relation to the administration and enforcement of this Act. 439 (1) Section 50 of the Act is amended by adding the following after subsection (1): Efficiency of system (1.001) The Governor in Council may make regulations requiring any persons referred to in subsection (1.1) who are subject to the legislative authority of Parliament and any users, other than passengers, of the national trans- portation system to provide information, other than per- sonal information as defined in section 3 of the Privacy Act, to the Minister, a person designated under section 6.11, any persons referred to in subsection (1.1) who are subject to the legislative authority of Parliament or any users, other than passengers, of the national transporta- tion system, when and in the form and manner that the regulations may specify, for the purposes of ensuring the proper functioning of the national transportation system or increasing its efficiency. (2) Subsection 50(3) of the Act is replaced by the following: Restriction (3) No regulation made under subsection (1) or (1.001) shall require or have the effect of requiring any person to provide the Minister, a person designated under section 6.11, any persons referred to in subsection (1.1) who are subject to the legislative authority of Parliament or any users, other than passengers, of the national transporta- tion system with a contract referred to in subsection 68(1) or a contract entered into under subsection 126(1) or under section 53 of the Canada Marine Act. 440 (1) Subsection 51(1) of the Act is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 22 Canada Transportation Act Amendments to the Act Sections 438-440 Page 304 Confidentiality of information — Minister or designated person 51 (1) Except as otherwise specifically provided in this Act or any other Act of Parliament, information required to be provided under this Act to the Minister or a person designated under section 6.11 is, when it is received by the Minister or the designated person, confidential and must not knowingly be disclosed or made available by any person without the authorization of the person who provided the information, except for the purposes of a prosecution of a contravention of section 173. (2) Subsection 51(2) of the Act is amended by adding the following after paragraph (a): (a.1) the communication of information that is pro- vided under regulations made under subsection 50(1.001) to persons referred to in subsection 50(1.1) who are subject to the legislative authority of Parlia- ment or any users, other than passengers, of the na- tional transportation system; (a.2) the communication of information prescribed in the regulations to persons prescribed in the regula- tions; (3) Subsections 51(3) and (4) of the Act are re- placed by the following: Regulations (2.2) The Governor in Council may make regulations prescribing information and persons for the purposes of paragraph (2)(a.2). Safe and secure procedures (3) The Minister and any person designated under sec- tion 6.11 shall ensure that the procedures and physical measures taken to ensure the confidentiality of informa- tion provided to them under this Act, including the keep- ing of electronic data, are safe and secure. Requirement for other persons to maintain confidentiality (4) Any person who receives from the Minister or a per- son designated under section 6.11 information that is confidential under this Act shall not knowingly disclose that information and shall take the measures necessary to maintain its confidentiality. 441 Section 51.1 of the Act is replaced by the fol- lowing: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 22 Canada Transportation Act Amendments to the Act Sections 440-441 Page 305 Publication 51.1 Despite subsection 51(1), the Minister may make public (a) information related to service and performance in- dicators provided in accordance with regulations made under paragraph 50(1.01)(b); and (b) information referred to in paragraph 50(2)(d). Confidential information — other persons 51.11 (1) Information that is required to be provided under subsection 50(1.001) to persons referred to in sub- section 50(1.1) who are subject to the legislative authority of Parliament or any users, other than passengers, of the national transportation system is, when it is received by those persons, confidential and must not knowingly be disclosed or made available by any person without the authorization of the person who provided the informa- tion, except for the purposes of a prosecution of a contra- vention of section 173. Safe and secure procedures (2) The persons referred to in subsection 50(1.1) who are subject to the legislative authority of Parliament and any users, other than passengers, of the national transporta- tion system must ensure that the procedures and physi- cal measures taken to ensure the confidentiality of infor- mation provided to them under this Act, including the keeping of electronic data, are safe and secure. 442 The Act is amended by adding the following after section 51.4: Order 51.5 (1) If the Minister is of the opinion that there ex- ists an unusual and significant disruption to the effective continued operation of the national transportation sys- tem, the Minister may, by order, require any persons re- ferred to in subsection 50(1.1) who are subject to the leg- islative authority of Parliament or any users, other than passengers, of the national transportation system to pro- vide to the Minister information, other than personal in- formation as defined in section 3 of the Privacy Act, that the Minister considers relevant to the assessment of the cause of the disruption or the mitigation or resolution of the disruption. Order is temporary (2) An order made under this section has effect for the period, not exceeding 90 days, that is specified in the or- der. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 22 Canada Transportation Act Amendments to the Act Sections 441-442 Page 306 Not a statutory instrument (3) The order is not a statutory instrument within the meaning of the Statutory Instruments Act. Disclosure of information (4) Despite subsection 51(1), the Minister may disclose information that has been provided to the Minister under this section to any person for the purposes of the mitiga- tion or resolution of the disruption. 443 (1) Section 127 of the Act is amended by adding the following after subsection (2): Order — Prairies (2.1) If the point of origin or destination of a continuous movement of traffic is in whole or in part in Manitoba, Saskatchewan or Alberta and is located within a radius of 160 km of an interchange that is in whole or in part in Manitoba, Saskatchewan or Alberta but outside a radius of 30 km of the interchange, the Agency may order (a) one of the companies to interswitch the traffic; and (b) the railway companies to provide reasonable facili- ties for the convenient interswitching of traffic in both directions at an interchange between the lines of ei- ther railway and those of other railway companies connecting with them. (2) Section 127 of the Act is amended by adding the following after subsection (4): Interswitching limits — Prairies (5) If the point of origin or destination of a continuous movement of traffic is in whole or in part in Manitoba, Saskatchewan or Alberta and is located within a radius of 160 km of an interchange that is in whole or in part in Manitoba, Saskatchewan or Alberta but outside a radius of 30 km of the interchange, a railway company must not transfer the traffic at the interchange except in accor- dance with the regulations and the interswitching rate. Information — traffic (6) When providing the Minister with information under regulations made under paragraph 50(1.01)(a), the Cana- dian National Railway Company and the Canadian Pacif- ic Railway Company are also required to provide the Minister, in the same form and manner, with the 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 22 Canada Transportation Act Amendments to the Act Sections 442-443 Page 307 following information with respect to any traffic that is moved by a railway car in order to permit the Minister to assess the effects of the application of subsections (2.1) and (5): (a) an indication as to whether the point of origin or destination of the movement of the railway car was lo- cated within a radius of 30 km of an interchange that is in whole or in part in Manitoba, Saskatchewan or Alberta; (b) an indication as to whether the point of origin or destination of the movement of the railway car was within a radius of 160 km of an interchange that is in whole or in part in Manitoba, Saskatchewan or Alberta but outside a radius of 30 km of the interchange; (c) an indication as to whether the railway car was moved by the railway company at the interswitching rate; and (d) if possible, an indication as to whether the railway car was moved by another railway company at the in- terswitching rate. Additional information (7) On request, a railway company must provide to the Minister, in the form and manner specified by the Minis- ter, any of the information or documents that have been provided to the Agency under section 128.1 in order to permit the Minister to assess the effects of the applica- tion of subsections (2.1) and (5). 444 (1) Section 127.1 of the Act is amended by adding the following after subsection (1): Interswitching rate — Prairies (1.1) The Agency shall, no later than 90 days after the day on which this subsection comes into force, determine the rate per car to be charged for interswitching traffic within a zone that includes a point of origin or destina- tion of a continuous movement of traffic that is located in whole or in part in Manitoba, Saskatchewan or Alberta and is within a radius of 160 km of an interchange that is in whole or in part in Manitoba, Saskatchewan or Alberta but outside a radius of 30 km of the interchange, for the calendar year in which this subsection comes into force. (2) Subsection 127.1(4) of the French version of the Act is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 22 Canada Transportation Act Amendments to the Act Sections 443-444 Page 308 Publication de la méthode (4) L’Office publie, quand il fixe le prix au titre du para- graphe (1), la méthode qu’il a suivie pour le faire. (3) Section 127.1 of the Act is amended by adding the following after subsection (4): Publication of method — subsection (1.1) (4.1) The Agency shall, when it makes its determination under subsection (1.1), publish the method that it fol- lowed for determining the rate. (4) Section 127.1 of the Act is amended by adding the following after subsection (5): Publication — subsection (1.1) (6) The Agency shall, no later than 90 days after the day on which this subsection comes into force, publish the rate determined under subsection (1.1) on its Internet site. 445 The Act is amended by adding the following after section 127.1: Repeal 127.2 This section and subsections 127(2.1) and (5) to (7) and 127.1(1.1), (4.1) and (6) are repealed on the day that, in the 18th month after the month in which subsec- tion 127(2.1) comes into force, has the same calendar number as the day on which that subsection 127(2.1) comes into force or, if that 18th month has no day with that number, the last day of that 18th month. 446 Section 177 of the Act is amended by adding the following after subsection (2): Certain provisions (2.001) The contravention of any provision of a regula- tion made under section 47.1 or subsection 50(1.001) or of any provision of an order made under subsection 51.5(1) or the contravention of any of subsections 51(1), (3) and (4) and 51.11(1) and (2) may be proceeded with as a violation in accordance with sections 179 and 180. The maximum amount payable for each violation is $100,000. 447 The portion of subsection 178(1) of the Act before paragraph (a) is replaced by the follow- ing: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 22 Canada Transportation Act Amendments to the Act Sections 444-447 Page 309 Notices of violation 178 (1) The Agency, in respect of a violation referred to in subsection 177(1), (2.1) or (3), or the Minister, in re- spect of a violation referred to in subsection 177(2), (2.001), (2.01) or (2.2), may 448 (1) The portion of subsection 178.1(1) of the Act before paragraph (a) is replaced by the fol- lowing: Other powers of enforcement officers 178.1 (1) An enforcement officer who enters a place for a purpose related to verifying compliance or preventing non-compliance with any provision of this Act or of any regulation, order or direction made under this Act or with any of sections 60 to 62 of the Accessible Canada Act may, for that purpose, (2) Paragraph 178.1(1)(i) of the Act is replaced by the following: (i) order the owner or person having possession of any thing to which any provision of this Act or of any regu- lation, order or direction made under this Act or any of sections 60 to 62 of the Accessible Canada Act apply that is found in that place to move it or, for any time that may be necessary, not to move it or to restrict its movement; 449 Section 179 of the Act is amended by adding the following after subsection (3): Continuing violation (4) A violation that is committed or continued on more than one day constitutes a separate violation for each day on which it is committed or continued. 450 Subsection 180.8(2) of the Act is replaced by the following: Delegation by Minister (2) In the case of a violation referred to in subsection 177(2), (2.001), (2.01) or (2.2), the Minister may delegate to the Agency any power, duty or function conferred on the Minister under this Part. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 22 Canada Transportation Act Amendments to the Act Sections 447-450 Page 310 Coming into Force 90th day after royal assent 451 Sections 443 and 445 come into force on the 90th day after the day on which this Act receives royal assent. DIVISION 23 Air Travel Complaints 1996, c. 10 Canada Transportation Act 452 Section 34 of the Canada Transportation Act is replaced by the following: Fees and charges 34 (1) The Agency may, after consulting with the Minis- ter, make rules respecting the fees and charges to be paid in relation to the administration or enforcement of any provision of this Act or the regulations whose adminis- tration or enforcement is the responsibility of the Agen- cy. Consultation (2) Before making a rule under subsection (1), the Agen- cy shall consult with any persons or organizations that the Agency considers to be interested in the matter. Debt due to His Majesty (3) Fees or charges required to be paid under this section constitute a debt to His Majesty in right of Canada and may be recovered as such in a court of competent juris- diction. 453 Paragraph 67(1)(c) of the Act is replaced by the following: (c) retain a record of its tariffs, and publish them on its Internet site, for a period of not less than three years after the tariffs have ceased to have effect. 454 Section 67.1 of the Act is repealed. 455 Subsection 67.2(1) of the Act is replaced by the following: Unreasonable or unduly discriminatory terms or conditions 67.2 (1) If the Agency finds that the holder of a domes- tic licence has applied terms or conditions of carriage ap- plicable to the domestic service it offers that are 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 22 Canada Transportation Act Coming into Force Sections 451-455 Page 311 unreasonable or unduly discriminatory, the Agency may suspend or disallow those terms or conditions and sub- stitute other terms or conditions in their place. 456 Section 67.3 of the Act is repealed. 457 Section 67.4 of the Act is repealed. 458 Subsections 68(1) and (1.1) of the Act are re- placed by the following: Non-application of fares, etc. 68 (1) Sections 66 to 67.2, 85.04 and 85.07 do not apply in respect of fares, rates or charges applicable to a do- mestic service provided for under a contract between a holder of a domestic licence and another person whereby the parties to the contract agree to keep its provisions confidential. Non-application of terms and conditions (1.1) Sections 66 to 67.2, 85.04 and 85.07 do not apply in respect of terms and conditions of carriage applicable to a domestic service provided for under a contract referred to in subsection (1) to which an employer is a party and that relates to travel by its employees. 459 Section 85.1 of the Act and the heading before it are replaced by the following: Carrier’s Obligation Process for claims 85.01 (1) A carrier shall establish a process for dealing with claims related to a fare, rate, charge or term or con- dition of carriage applicable to the air service it offers. Period to communicate decision (2) The process shall include an obligation for the carri- er, on receipt of a written request to deal with a claim, to communicate to the claimant its decision on the claim within 30 days after the day on which it received the re- quest. Air Travel Complaints Complaint resolution officers 85.02 (1) The Chairperson, or a person designated by the Chairperson, shall designate, from among the mem- bers and staff of the Agency, persons to act as complaint resolution officers for the purpose of sections 85.04 to 85.12. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 23 Air Travel Complaints Canada Transportation Act Sections 455-459 Page 312 Limits on powers and duties (2) A member of the Agency or its staff who acts as a complaint resolution officer has the powers, duties and functions of a complaint resolution officer and not of the Agency. Clarification — proceedings (3) Proceedings before a complaint resolution officer are not proceedings before the Agency. Non-application of certain provisions 85.03 Sections 17, 25 and 36.1 do not apply in respect of any matter that may be dealt with under sections 85.04 to 85.12. Complaints related to tariffs 85.04 (1) A person may file a complaint in writing with the Agency if (a) the person alleges that a carrier failed to apply a fare, rate, charge or term or condition of carriage ap- plicable to the air service it offers that is set out in its tariffs; (b) the person is adversely affected by the failure to apply that fare, rate, charge or term or condition of carriage; (c) the person seeks compensation or a refund as set out in the carrier’s tariffs or compensation for expens- es incurred as a result of that failure; and (d) the person made a written request to the carrier to resolve the matters to which the complaint relates but they were not resolved within 30 days after the day on which the request was made. Refusal to deal with complaint (2) A complaint resolution officer may refuse to deal with a complaint or, at any time, cease dealing with it if they are of the opinion that (a) the criteria set out in subsection (1) have not been met; (b) it is clear on the face of the complaint that the car- rier has complied with the obligations set out in its tariffs; or (c) the complaint is vexatious or made in bad faith. Mediation 85.05 (1) If the complaint resolution officer does not refuse under subsection 85.04(2) to deal with a com- plaint, they shall mediate the complaint and start the 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 23 Air Travel Complaints Canada Transportation Act Section 459 Page 313 mediation no later than the 30th day after the day on which the complaint is filed. Filing of mediation agreement (2) An agreement that is reached as a result of mediation may be filed with the Agency and, after filing, is enforce- able as if it were an order of the Agency. Decision on complaint 85.06 (1) If no agreement is reached as a result of medi- ation, and the complaint resolution officer does not cease dealing with the complaint under subsection 85.04(2), the complaint resolution officer shall, no later than the 60th day after the day on which the mediation started, and based on the information provided by the complainant and the carrier, (a) make an order under subsection 85.07(1); or (b) make an order dismissing the complaint. Status of order (2) An order referred to in subsection (1) is not an order or decision of the Agency. Order related to tariffs 85.07 (1) If the complaint resolution officer finds that the carrier that is the subject of the complaint has failed to apply a fare, rate, charge or term or condition of car- riage applicable to the air service it offers that is set out in its tariffs, the complaint resolution officer may order the carrier to (a) apply a fare, rate, charge or term or condition of carriage that is set out in its tariffs; and (b) compensate the complainant for any expenses they incurred as a result of the carrier’s failure to ap- ply a fare, rate, charge or term or condition of carriage that is set out in its tariffs. Onus (2) If a complaint raises an issue as to whether a flight delay, flight cancellation or denial of boarding is within a carrier’s control, is within a carrier’s control but is re- quired for safety reasons or is outside a carrier’s control, it is presumed to be within the carrier’s control and not required for safety reasons unless the carrier proves the contrary. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 23 Air Travel Complaints Canada Transportation Act Section 459 Page 314 Filing of order and enforcement (3) An order made under subsection (1) may be filed with the Agency and, after filing, is enforceable as if it were an order of the Agency. Prior decisions to be taken into account 85.08 In regards to the issue of whether a flight delay, flight cancellation or denial of boarding is within a carri- er’s control, is within a carrier’s control but is required for safety reasons or is outside a carrier’s control, a com- plaint resolution officer who is dealing with a complaint in respect of a flight shall take into account any prior de- cision on that issue that is contained in an order made by a complaint resolution officer in respect of that flight. Confidentiality of information 85.09 (1) All matters related to the process of dealing with a complaint shall be kept confidential, unless the complainant and the carrier otherwise agree, and infor- mation provided by the complainant or the carrier to the complaint resolution officer for the purpose of the com- plaint resolution officer dealing with the complaint shall not be used for any other purpose without the consent of the one who provided it. Communication of information (2) Subsection (1) does not apply so as to prohibit (a) the communication of information to the Agency; (b) the communication of information to complaint resolution officers for the purpose of assisting them in the exercise of their powers or the performance of their duties and functions; or (c) the making public by the Agency of information under sections 85.14 and 85.15. Procedure 85.1 Subject to the procedure set out in the guidelines referred to in section 85.12, a complaint resolution officer shall deal with complaints in the manner that they con- sider appropriate in the circumstances. Assistance by Agency 85.11 The Agency may, at a complaint resolution offi- cer’s request, provide administrative, technical and legal assistance to the complaint resolution officer. Guidelines 85.12 (1) The Agency may issue guidelines 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 23 Air Travel Complaints Canada Transportation Act Section 459 Page 315 (a) respecting the manner of and procedures for deal- ing with complaints filed under subsection 85.04(1); and (b) setting out the extent to which and the manner in which, in the Agency’s opinion, any provision of the regulations applies with regard to complaints. Guidelines binding (2) A guideline is, until it is revoked or modified, binding on any complaint resolution officer dealing with a com- plaint filed under subsection 85.04(1). Publication (3) Each guideline shall be published on the Agency’s website, in the Canada Gazette and in any other manner that the Agency considers appropriate. Statutory Instruments Act (4) The Statutory Instruments Act does not apply to the guideline. Referral to panel 85.13 (1) If no agreement is reached as a result of the mediation of a complaint under section 85.05, the Chair- person or a person designated by them may, at the re- quest of the complaint resolution officer who conducted the mediation, and if the Chairperson or person designat- ed by them, as the case may be, considers that the com- plexity of the complaint requires it, refer the complaint to a panel of at least two members. Those members, none of whom is to be the complaint resolution officer who con- ducted the mediation, shall act as the complaint resolu- tion officers in respect of the complaint for the purposes of sections 85.06 to 85.12. Clarification – panels (2) A reference in subsections 85.02(2) and (3) and sec- tions 85.06 to 85.12 to a complaint resolution officer is considered to include a reference to a panel. Publication — order or summary of order 85.14 (1) The Agency shall make public (a) in the case of an order made by a single complaint resolution officer (i) the number of the flight to which the order re- lates, (ii) the date of departure of the flight that is indi- cated on the complainant’s ticket, 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 23 Air Travel Complaints Canada Transportation Act Section 459 Page 316 (iii) any decision contained in the order in regards to the issue of whether any flight delay, flight can- cellation or denial of boarding was within the carri- er’s control, was within the carrier’s control but was required for safety reasons or was outside the carri- er’s control, and (iv) a statement as to whether or not the complaint resolution officer ordered the carrier to provide compensation or a refund as set out in the carrier’s tariffs or compensation for expenses incurred; and (b) subject to subsection (2), in the case of an order made by a panel, the entire order. Exception (2) The Agency may, at the request of a complainant or carrier, decide to keep confidential any part of an order, other than the information referred to in subparagraphs (1)(a)(i) to (iv). Part of annual report 85.15 The Agency shall, as part of its annual report, in- dicate the number and nature of the complaints filed un- der subsection 85.04(1), the names of the carriers against whom the complaints were made, the number of com- plaints for which an order was made under subsection 85.07(1) and the systemic trends observed. Fees and charges 85.16 (1) The Agency shall establish fees or charges for the purpose of recovering all or a portion of the costs that the Agency determines to be related to the process of dealing with complaints — other than complaints dis- posed of under subsection 85.04(2) — under sections 85.05 to 85.12. Carrier’s liability (2) The carriers that are the subject of complaints — oth- er than complaints disposed of under subsection 85.04(2) — are liable for the payment of the fees or charges. Consultation (3) Before establishing fees or charges, the Agency shall consult with any persons or organizations that the Agen- cy considers to be interested in the matter. Publication (4) The Agency shall publish the fees and charges on its Internet site. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 23 Air Travel Complaints Canada Transportation Act Section 459 Page 317 Debt due to His Majesty (5) Fees or charges required to be paid under this section constitute a debt to His Majesty in right of Canada and may be recovered as such in a court of competent juris- diction. Spending authority (6) The Agency may spend the amounts obtained under this section in the fiscal year in which they are paid or in the next fiscal year. Service Fees Act (7) The Service Fees Act does not apply to the fees and charges referred to in subsection (1). 460 Subsection 85.07(2) of the Act is replaced by the following: Onus (2) If a complaint raises an issue as to whether an excep- tion specified by regulations made under paragraph 86.11(1)(b.1) applies, the exception is presumed not to apply unless the carrier proves the contrary. 461 Section 85.08 of the Act is replaced by the fol- lowing: Prior decisions to be taken into account 85.08 In regards to the issue of whether an exception specified by regulations made under paragraph 86.11(1)(b.1) applies, a complaint resolution officer who is dealing with a complaint in respect of a flight shall take into account any prior decision on that issue that is con- tained in an order made by a complaint resolution officer in respect of that flight. 462 Subparagraph 85.14(1)(a)(iii) of the Act is re- placed by the following: (iii) any decision contained in the order in regards to the issue of whether an exception specified by regulations made under paragraph 86.11(1)(b.1) ap- plies, and 463 Section 85.16 of the Act is repealed. 464 (1) Paragraph 86(1)(h) of the Act is amended by adding “and” at the end of subparagraph (ii) and by repealing subparagraphs (iii) and (iii.1). (2) Subsection 86(1) of the Act is amended by adding the following after paragraph (h): 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 23 Air Travel Complaints Canada Transportation Act Sections 459-464 Page 318 (h.1) respecting the process for dealing with claims referred to in section 85.01; 465 (1) Subparagraphs 86.11(1)(b)(i) to (iii) of the Act are replaced by the following: (i) the minimum standards of treatment of passen- gers that the carrier is required to meet, including those that the carrier is required to meet when an exception specified by regulations made under paragraph (b.1) applies, (ii) the minimum compensation the carrier is re- quired to pay for inconvenience, (iii) the carrier’s obligation to ensure that passen- gers complete their itinerary or, if they are not able to complete it within a reasonable time, receive a refund, and (2) Subsection 86.11(1) of the Act is amended by adding the following after paragraph (b): (b.1) specifying exceptions to the obligation set out in subparagraph (b)(ii); (3) Paragraph 86.11(1)(c) of the Act is replaced by the following: (c) prescribing the minimum compensation for de- layed, lost or damaged baggage that the carrier is re- quired to pay; (4) Subsection 86.11(1) of the Act is amended by striking out “and” at the end of paragraph (f) and by adding the following after that paragraph: (f.1) respecting the carrier’s obligations with respect to refunds in the event that a person who has reserved space on a flight with the carrier cancels the reserva- tion due to the issuance of a Government of Canada travel advisory; and 466 Subparagraph 177(1)(b)(ii) of the Act is re- placed by the following: (ii) $25,000 — or, in the case of a violation involving a contravention of any provision of a regulation made under subsection 86.11(1), $250,000 — in the case of a corporation. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 23 Air Travel Complaints Canada Transportation Act Sections 464-466 Page 319 467 (1) Subsection 180.1(1) of the Act is replaced by the following: Options 180.1 (1) Subject to subsections (2) to (4), a person who has been served with a notice of violation must either pay the amount of the penalty specified in the notice or file with the Tribunal a written request for a review of the facts of the alleged contravention or of the amount of the penalty. (2) Section 180.1 of the Act is amended by adding the following after subsection (3): Regulations made under subsection 86.11(1) — penalty (4) A person who has been served with a notice of viola- tion that identifies any provision of a regulation made under subsection 86.11(1) that was contravened and that sets out a penalty for the violation must (a) pay the amount of the penalty specified in the no- tice; (b) file with the Tribunal a written request for a re- view of the facts of the alleged contravention or of the amount of the penalty; or (c) request, within the time and in the manner set out in the notice, to enter into a compliance agreement with the Agency for the purpose of ensuring the per- son’s compliance with the provision of the regulations to which the violation relates. 468 (1) The portion of subsection 180.62(1) of the Act before paragraph (a) is replaced by the fol- lowing: Entering into compliance agreements 180.62 (1) After considering a request made under paragraph 180.1(3)(c) or (4)(c), the Agency may enter in- to a compliance agreement, as described in that para- graph, with the person making the request on any terms that the Agency considers appropriate. The terms may (2) Paragraph 180.62(4)(a) of the Act is replaced by the following: (a) that instead of being liable to pay the amount of the penalty specified in the notice of violation in 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 23 Air Travel Complaints Canada Transportation Act Sections 467-468 Page 320 respect of which the compliance agreement was en- tered into, they are liable to pay, within the time and in the manner set out in the notice of default and with- out taking account of the limit set out in paragraph 177(1)(b) or subsection 177(3), as the case may be, an amount that is twice the amount of that penalty; 469 Subsection 180.63(1) of the Act is replaced by the following: Refusal to enter compliance agreement 180.63 (1) If the Agency refuses to enter into a compli- ance agreement requested under paragraph 180.1(3)(c) or (4)(c), the person who made the request is liable to pay, in the manner specified in the notice of violation and within the time specified in it or any longer period speci- fied by the Agency, the amount of the penalty specified in the notice of violation. 470 (1) Section 180.64 of the Act is amended by adding the following after subsection (2): Regulations made under subsection 86.11(1) (2.1) If a person to whom subsection 180.1(4) applies does not pay the amount of the penalty specified in the notice of violation in accordance with the particulars set out in it, file a request for a review under subsection 180.3(1) or make a request to enter into a compliance agreement under paragraph 180.1(4)(c), the person is deemed to have committed the contravention alleged in the notice of violation and the Agency may obtain from the Tribunal a certificate in the form that may be estab- lished by the Governor in Council that indicates the amount of the penalty specified in that notice. (2) Subsection 180.64(4) of the Act is replaced by the following: Refusal to enter into compliance agreement (4) If the Agency refuses a person’s request under para- graph 180.1(3)(c) or (4)(c) to enter into a compliance agreement, and the person does not pay the amount of the penalty specified in the notice of violation within the time and in the manner required by subsection 180.63(1), the Agency may obtain from the Tribunal a certificate in the form that may be established by the Governor in Council that indicates the amount of the penalty specified in that notice. 471 Section 181 of the Act is replaced by the fol- lowing: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 23 Air Travel Complaints Canada Transportation Act Sections 468-471 Page 321 Time limit for proceedings 181 Proceedings in respect of a violation may be insti- tuted not later than 36 months after the time when the subject matter of the proceedings arose. Transitional Provisions Complaints remaining with Agency 472 (1) A complaint filed under section 67.1 of the Canada Transportation Act before the day on which section 459 comes into force that is in the course of being heard by the Canadian Trans- portation Agency on that day is to be dealt with and disposed of in accordance with that Act, and any regulations made under it, as they read on the date of departure that is indicated on the ticket for the flight to which the complaint re- lates. Complaints to be dealt with by complaint resolution officers (2) A complaint filed under section 67.1 of the Canada Transportation Act before the day on which section 459 comes into force that is not in the course of being heard by the Canadian Trans- portation Agency on that day is to be dealt with and disposed of in accordance with (a) sections 85.04 to 85.12 of that Act; and (b) any regulations made under subsection 86.11(1) of that Act as they read on the date of departure that is indicated on the ticket for the flight to which the complaint relates. Complaints relative to coming into force of subsection 465(1) 473 A complaint filed under subsection 85.04(1) of the Canada Transportation Act before the day on which subsection 465(1) comes into force that was not disposed of before that day, and a com- plaint filed under that subsection 85.04(1) on or after that day in respect of a flight for which the date of departure that is indicated on the com- plainant’s ticket is before that day, is to be dealt with and disposed of in accordance with sections 85.04 to 85.12 of that Act, and any regulations made under subsection 86.11(1) of that Act, as they read on the date of departure that is indicat- ed on the ticket for the flight to which the com- plaint relates. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 23 Air Travel Complaints Canada Transportation Act Sections 471-473 Page 322 Coming into Force September 30, 2023 474 (1) Sections 454 to 456, 458 and 459 come into force on September 30, 2023 or, if it is later, on the day on which this Act receives royal assent. Order in council (2) Sections 457, 460 to 464 and subsections 465(1), (2) and (4) come into force on a day or days to be fixed by order of the Governor in Council. DIVISION 24 R.S., c. 1 (2nd Supp.) Customs Act Amendments to the Act 475 Section 7.1 of the Customs Act is replaced by the following: Obligation to provide accurate information 7.1 Any information provided to an officer or the Agency in the administration or enforcement of this Act, the Cus- toms Tariff or the Special Import Measures Act, or un- der any other Act of Parliament that prohibits, controls or regulates the importation or exportation of goods, shall be true, accurate and complete. 476 (1) Subsections 11(1) to (3) of the Act are re- placed by the following: Presentation on arrival in Canada 11 (1) Subject to this section, every person arriving in Canada shall, except in the circumstances and subject to the conditions that may be prescribed, enter Canada only at a customs office designated for that purpose that is open for business and without delay present themselves (a) to an officer in person; or (b) to the Agency by a means of telecommunication that is specified by the Minister for use at that customs office. Limitation (1.1) If only one of the manners of presentation set out in paragraphs (1)(a) and (b) is made available at the cus- toms office, the person shall present themselves under subsection (1) in that manner. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 23 Air Travel Complaints Coming into Force Sections 474-476 Page 323 Information (1.2) The person presenting themselves under subsec- tion (1) shall (a) if presenting in person, provide any information that may be required by the officer in the performance of the officer’s duties under this or any other Act of Parliament; (b) if presenting by a means of telecommunication, provide any information, including a photograph tak- en when they are presenting themselves, that may be required by the Agency and that is related to the per- formance of an officer’s duties under this or any other Act of Parliament; and (c) in either case, answer truthfully any questions that are asked by an officer in the performance of those du- ties. Information before arrival (1.3) A person who intends to present themselves by a means of telecommunication under paragraph (1)(b) shall, in the prescribed circumstances, provide the pre- scribed information within the prescribed time before they arrive in Canada. Exception (2) Subsection (1) does not apply to any person who has presented themselves outside Canada at a customs office designated for that purpose and has not subsequently stopped at any other place prior to their arrival in Canada, unless an officer requires them to comply with that subsection. Presentation of passengers and crew (3) Subject to this section, every person in charge of a conveyance arriving in Canada shall, except in the cir- cumstances and subject to the conditions that may be prescribed, ensure that the passengers and crew are im- mediately on arrival in Canada transported to a customs office referred to in subsection (1). (2) Subsection 11(7) of the Act is replaced by the following: Powers of officer (7) An officer may require that a person present them- selves in person in accordance with paragraph (1)(a) at a time and place that the officer may specify, even if the person (a) presents themselves, or expresses an intention to present themselves, at a customs office by a means of telecommunication under paragraph (1)(b); 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 24 Customs Act Amendments to the Act Section 476 Page 324 (b) is exempt in the prescribed circumstances referred to in subsection (1) from presenting themselves in ac- cordance with that subsection; (c) holds an authorization under subsection 11.1(1); or (d) is authorized under the regulations made under subsection 11.1(3). Regulations (8) The Governor in Council may make regulations re- specting the establishment of classes of persons for the purposes of presentation under this section, including regulations respecting (a) the issuance, amendment, suspension, renewal, cancellation and reinstatement by the Minister of au- thorizations for membership in a class; (b) the requirements and conditions that are to be met before the authorizations may be issued; (c) the terms and conditions of the authorizations; and (d) fees or the manner of determining fees to be paid for the authorizations. Service Fees Act (9) The Service Fees Act does not apply to a fee for an authorization issued under regulations made under sub- section (8) if it is a reciprocal fee under an international arrangement. 477 Section 11.7 of the Act is replaced by the fol- lowing: Person travelling in mixed-traffic corridor 11.7 (1) Every person who is travelling in a mixed-traf- fic corridor shall, at the nearest customs office, (a) present themselves (i) to an officer in person, or (ii) to the Agency by the means of telecommunica- tion that is specified by the Minister for use at the customs office; and (b) state whether they are arriving from a location outside or within Canada. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 24 Customs Act Amendments to the Act Sections 476-477 Page 325 Limitation (2) If only one of the manners of presentation set out in subparagraphs (1)(a)(i) and (ii) is made available at the customs office, the person shall present themselves un- der paragraph (1)(a) in that manner. 478 The Act is amended by adding the following after section 12.1: Commercial passenger aircraft — baggage 12.2 (1) Despite section 14 but subject to the regula- tions, every operator of an aircraft that is arriving in Canada and carrying passengers who have paid for pas- sage shall ensure that the baggage of all passengers and crew — other than baggage in the passengers’ or crew’s actual possession — is, without delay on arrival, trans- ported to the nearest designated international baggage area. Powers of officer (2) An officer may require that an operator who is ex- empted from the requirement set out in subsection (1) ensure that the baggage be brought without delay to the location specified by the officer. Regulations (3) The Governor in Council may make regulations re- specting exemptions from the requirement set out in sub- section (1). Designation (4) The President may designate an area in an airport as an international baggage area for the purposes of subsec- tion (1). Amendment, etc., of designation (5) The President may at any time amend, cancel or rein- state a designation made under subsection (4). 2005, c. 20 Related Amendment to the Quarantine Act 479 Section 12 of the Quarantine Act is replaced by the following: Obligation on arriving travellers 12 Except in the prescribed circumstances and subject to the prescribed conditions, every person who is subject to subsection 11(1) of the Customs Act and enters Canada 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 24 Customs Act Amendments to the Act Sections 477-479 Page 326 shall, immediately after entering, present themselves to a screening officer at the nearest entry point. Coming into Force Order in council 480 Sections 475 to 479 come into force on a day or days to be fixed by order of the Governor in Council. DIVISION 25 R.S., c. N-15 National Research Council Act Amendments to the Act 481 Subsection 3(2) of the Act is replaced by the following: Council incorporated (2) The Council is a corporation that has power, for the purposes of this Act, to (a) acquire, hold, sell or otherwise dispose of and loan or lease real, personal, movable and immovable prop- erty; and (b) enter into contracts, agreements, memoranda of understanding or other arrangements with a depart- ment, board or agency of the Government of Canada, with any other government or any of its departments, boards or agencies or with any person or organization in the name of His Majesty in right of Canada or in its own name. Non-application of requirements (2.1) Despite the Financial Administration Act, includ- ing subsection 41(1) of that Act, the Council is not subject to any requirement established by the Treasury Board under that Act that (a) limits, on the basis of financial criteria, the power of the Council to enter into contracts for the procure- ment of goods and services; or (b) relates to limits on liability or indemnification in those contracts. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 24 Customs Act Related Amendment to the Quarantine Act Sections 479-481 Page 327 Procurement of goods and services (2.2) Despite section 9 of the Department of Public Works and Government Services Act, the Council may procure goods and services from outside the federal pub- lic administration. Clarification (2.3) For greater certainty, the power to procure goods and services includes the power to procure goods and services relating to construction and to research-related digital and information technology. Legal services (2.4) The Council may procure legal services from out- side the federal public administration only with the ap- proval of the Attorney General of Canada. 482 Section 4 of the Act is renumbered as subsec- tion 4(1) and is amended by adding the following: Research-related digital and information technology (2) The design, development, testing and operation of re- search-related digital and information technology is es- sential to the carrying out of the Council’s duties. 483 The Act is amended by adding the following after section 17: Establishment of Procurement Oversight Board Establishment 18 (1) There is established a board, to be called the Pro- curement Oversight Board, consisting of (a) not less than three or more than five members, in- cluding a Chair, who have a right to vote; (b) one member who is a person employed by the De- partment of Public Works and Government Services and who does not have a right to vote; and (c) one member who is a person employed in the fed- eral public administration and who does not have a right to vote, if the Minister considers that member necessary to assist the Procurement Oversight Board in carrying out its duties. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 25 National Research Council Act Amendments to the Act Sections 481-483 Page 328 Duties (2) The Procurement Oversight Board shall review and approve the Council’s policy framework for procuring goods and services and any amendments to it. Terms of reference (3) The Minister may determine and amend the terms of reference of the Procurement Oversight Board. Appointment 19 (1) Members of the Procurement Oversight Board, including the Chair, shall be appointed by the Minister. Tenure of office (2) Members of the Procurement Oversight Board shall be appointed to hold office on a part-time basis and dur- ing pleasure for a term of not more than four years, which may be renewed for a second term. Remuneration 20 (1) Members of the Procurement Oversight Board shall be paid the remuneration that is fixed by the Minis- ter. Travel and other expenses (2) Members of the Procurement Oversight Board are entitled to be paid reasonable travel and other expenses incurred while absent from their ordinary place of resi- dence in the course of performing their duties under this Act. Meetings 21 The Procurement Oversight Board shall meet at least twice a year. 484 Subsection 18(2) of the Act is replaced by the following: Duties (2) The Procurement Oversight Board shall review and approve (a) the Council’s policy framework for procuring goods and services and any amendments to it; and (b) the Council’s proposals to enter into contracts for the procurement of goods and services if the procure- ment is complex or large-scale when measured by cri- teria established by the Procurement Oversight Board. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 25 National Research Council Act Amendments to the Act Sections 483-484 Page 329 485 The Act is amended by adding the following after section 21: Annual Summary Activities 22 The Procurement Oversight Board shall, within 90 days after the end of each fiscal year, provide a summary of its activities in that year to the Minister. Coming into Force First anniversary of royal assent 486 Sections 481, 482, 484 and 485 come into force on the first anniversary of the day on which this Act receives royal assent, or on an earlier day fixed by order of the Governor in Council. DIVISION 26 R.S., c. P-4 Patent Act Amendments to the Act 487 (1) Paragraph 12(1)(g) of the Patent Act is re- placed by the following: (g) respecting the payment of any prescribed fees, in- cluding the time when and the manner in which such fees shall be paid, the time at which such fees are deemed to be paid, the additional fees that may be charged for the late payment of such fees and the cir- cumstances in which any fees previously paid may be refunded in whole or in part; (2) Paragraph 12(1)(j.73) of the Act is replaced by the following: (j.73) respecting the conditions set out in subsections 46(5) and 46.2(5), including the circumstances in which subparagraph 46(5)(a)(ii), paragraph 46(5)(b), subparagraph 46.2(5)(a)(ii) and paragraph 46.2(5)(b) do not apply; (j.731) respecting the number of days to be subtract- ed in determining the duration of an additional term under subsection 46.1(4), including authorizing the Commissioner to make determinations with respect to that number; 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 25 National Research Council Act Amendments to the Act Sections 485-487 Page 330 (j.732) respecting applications under section 46.1 for an additional term, including their form, contents and processing; (j.733) respecting notices to the public in relation to additional terms granted under section 46.1; (j.734) respecting reconsiderations under section 46.3, including applications for a reconsideration and their form, contents and processing; 488 (1) Subsection 20(9) of the Act is replaced by the following: Custody of secret application (9) The packet described in subsection (8) shall, until the expiry of the term — or, if applicable, of the additional term — during which a patent for the invention may be in force, be kept sealed by the Commissioner, and shall not be opened except under the authority of an order of the Minister of National Defence. (2) Subsection 20(11) of the Act is replaced by the following: Delivery to Minister (11) On the expiry of the term — or, if applicable, of the additional term — of the patent, the packet described in subsection (8) shall be delivered to the Minister of Na- tional Defence. 489 Section 42 of the Act is replaced by the fol- lowing: Contents of patent 42 Every patent granted under this Act shall contain the title or name of the invention, with a reference to the specification, and shall, subject to this Act, grant to the patentee and the patentee’s legal representatives for the term of the patent referred to in section 44 or 45 and, if applicable, for the additional term granted under section 46.1, from the granting of the patent, the exclusive right, privilege and liberty of making, constructing and using the invention and selling it to others to be used, subject to adjudication in respect thereof before any court of competent jurisdiction. 490 Subsection 43(2) of the Act is replaced by the following: Validity of patent (2) After the patent is issued, it shall, in the absence of any evidence to the contrary, be valid and avail the patentee and the legal representatives of the patentee for 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 26 Patent Act Amendments to the Act Sections 487-490 Page 331 the term referred to in section 44 or 45 and, if applicable, for the additional term granted under section 46.1. 491 Sections 44 and 45 of the Act are replaced by the following: Term of patents based on applications filed on or after October 1, 1989 44 Subject to section 46, where an application for a patent is filed under this Act on or after October 1, 1989, the term of the patent is 20 years from the filing date. Term of patents based on applications filed before October 1, 1989 45 Subject to section 46, where an application for a patent is filed under this Act before October 1, 1989, the term of the patent is 17 years from the date on which the patent is issued. 492 (1) Subsection 46(1) of the Act is replaced by the following: Maintenance fees 46 (1) To maintain the rights accorded by a patent is- sued under this Act in effect during the term referred to in section 44 or 45, the prescribed fees shall be paid on or before the prescribed dates. (2) Paragraph 46(2)(b) of the Act is replaced by the following: (b) the Commissioner shall send a notice to the paten- tee stating that the term will be deemed to have ex- pired if the prescribed fee and late fee are not paid be- fore the later of the end of six months after the appli- cable prescribed date and the end of two months after the date of the notice. (3) Subsection 46(4) of the Act is replaced by the following: Term deemed expired on prescribed date (4) If the prescribed fee and late fee are not paid before the later of the end of six months after the applicable pre- scribed date and the end of two months after the date of the notice, the term shall be deemed to have expired on the applicable prescribed date. (4) The portion of subsection 46(5) of the Act be- fore paragraph (a) is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 26 Patent Act Amendments to the Act Sections 490-492 Page 332 Subsection (4) deemed never to have produced its effects (5) Subject to the regulations, if the term is deemed to have expired under subsection (4), that subsection is deemed never to have produced its effects if (5) Subparagraph 46(5)(a)(i) of the Act is re- placed by the following: (i) makes a request to the Commissioner for the term to never have been deemed to have expired, (6) The portion of subsection 46(6) of the Act be- fore paragraph (a) is replaced by the following: Powers of the Federal Court (6) If subsection (5) applies, the Federal Court may, by order, declare the term to have expired on the applicable prescribed date if the Federal Court determines either 493 The Act is amended by adding the following after section 46: Additional Term Grant of additional term 46.1 (1) The Commissioner shall grant an additional term for a patent if (a) the patent was issued after the later of (i) the fifth anniversary of the applicable day set out in subsection (2), and (ii) the third anniversary of the first day, without taking subsection 35(4) into account, on which a re- quest for examination has been made under section 35 in respect of the application for the patent, the prescribed fee referred to in subsection 35(1) has been paid and, if applicable, the prescribed late fee referred to in paragraph 35(3)(a) has been paid; (b) the filing date for the application for the patent is on or after December 1, 2020; and (c) the patentee applies for the additional term in ac- cordance with the regulations, and pays the prescribed fee, within three months after the day on which the patent is issued. Applicable day (2) For the purposes of subparagraph (1)(a)(i), the appli- cable day is 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 26 Patent Act Amendments to the Act Sections 492-493 Page 333 (a) in the case of a patent issued on the basis of a divi- sional application, the prescribed day; (b) in the case of a patent issued on the basis of a PCT national phase application, as defined in subsection 1(1) of the Patent Rules, the prescribed day; or (c) in any other case, the filing date of the application for the patent. Beginning of additional term (3) The additional term begins on the expiry of the term referred to in section 44, without taking into account sec- tion 46, but only if the patent remains valid until, and is not void before, the expiry of that term. Duration of additional term (4) The Commissioner shall determine the duration of the additional term, which shall be equal to the number of days between the later of the anniversaries set out in paragraph (1)(a) and the day on which the patent is is- sued minus the number of days that is determined under the regulations. Limitation (5) Despite subsection (1), no additional term shall be granted under this section if the determination of the du- ration under subsection (4) produces a result of zero or a negative value. Limitation — section 46.2 (6) The additional term is subject to section 46.2. Certificate (7) The Commissioner shall issue a certificate of addi- tional term setting out the number of the patent as recorded in the Patent Office, the duration of the addi- tional term and any other prescribed information and shall send the certificate to the patentee. Reissued patent (8) For the purposes of this section and sections 46.3 and 46.4, if a patent is reissued under section 47, the patent is deemed to have been issued on the day on which the original patent was issued and the application for the patent is deemed to be the application for the original patent. Maintenance fees 46.2 (1) To maintain the rights accorded by a patent during an additional term granted under section 46.1 in 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 26 Patent Act Amendments to the Act Section 493 Page 334 effect, the prescribed fees shall be paid on or before the prescribed dates. Late fee and notice (2) If a prescribed fee is not paid on or before the appli- cable prescribed date, (a) the prescribed late fee shall be paid, in addition to the prescribed fee; and (b) the Commissioner shall send a notice to the paten- tee stating that the additional term will be deemed to have expired if the prescribed fee and late fee are not paid before the later of the end of six months after the applicable prescribed date and the end of two months after the date of the notice. Prescribed fee deemed paid on prescribed date (3) If the prescribed fee and late fee are paid before a no- tice is sent or, if a notice is sent, the prescribed fee and late fee are paid before the later of the end of six months after the applicable prescribed date and the end of two months after the date of the notice, the prescribed fee shall be deemed to have been paid on the applicable pre- scribed date. Additional term deemed expired on prescribed date (4) If the prescribed fee and late fee are not paid before the later of the end of six months after the applicable pre- scribed date and the end of two months after the date of the notice, the additional term shall be deemed to have expired on the applicable prescribed date. Subsection (4) deemed never to have produced its effects (5) Subject to the regulations, if the additional term is deemed to have expired under subsection (4), that sub- section is deemed never to have produced its effects if (a) the patentee, within the prescribed time, (i) makes a request to the Commissioner for the ad- ditional term to never have been deemed to have expired, (ii) states, in the request, the reasons for the failure to pay the prescribed fee and late fee before the lat- er of the end of six months after the applicable pre- scribed date and the end of two months after the date of the notice, and (iii) pays the prescribed fee, the late fee and any ad- ditional prescribed fee; and 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 26 Patent Act Amendments to the Act Section 493 Page 335 (b) the Commissioner determines that the failure oc- curred in spite of the due care required by the circum- stances having been taken and informs the patentee of this determination. Powers of the Federal Court (6) If subsection (5) applies, the Federal Court may, by order, declare the additional term to have expired on the applicable prescribed date if the Federal Court deter- mines either (a) that the statement of the reasons referred to in subparagraph (5)(a)(ii) contains a material allegation that is untrue; or (b) that, if paragraph (5)(b) applies, the failure re- ferred to in subparagraph (5)(a)(ii) did not occur in spite of the due care required by the circumstances having been taken. Reconsideration of duration 46.3 (1) The Commissioner may reconsider the dura- tion of an additional term granted under section 46.1 on the Commissioner’s own initiative or on application by any person. Application (2) An application for reconsideration shall be made in accordance with the regulations and accompanied by payment of the prescribed fee. Notice to patentee (3) Notice of a reconsideration shall be given to the patentee in accordance with the regulations. Shortening of duration (4) On reconsideration, the Commissioner shall shorten the duration of the additional term in accordance with subsection 46.1(4) if the Commissioner is satisfied that the duration is longer than is authorized under that sub- section, and shall dismiss the reconsideration in any oth- er case. Amended certificate (5) If the Commissioner shortens the duration of the ad- ditional term, the Commissioner shall issue an amended certificate of additional term and send it to the patentee. Stay (6) The Commissioner may stay a reconsideration under this section pending the conclusion of any court proceed- ing. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 26 Patent Act Amendments to the Act Section 493 Page 336 Federal Court 46.4 (1) A person may bring an action in the Federal Court against a patentee for an order to shorten the dura- tion of an additional term granted under section 46.1. Power to shorten duration (2) If the Court finds that the duration is longer than is authorized under subsection 46.1(4), the Court shall, by order, shorten the duration in accordance with that sub- section, and in doing so may exercise any power, or per- form any duty or function, of the Commissioner. Copy to Commissioner and amended certificate (3) If the Court shortens the duration, an officer of the Court’s registry shall send a certified copy of the Court’s order to the Commissioner, and the Commissioner shall issue an amended certificate of additional term and send it to the patentee. 494 Subsections 47(1) and (1.1) of the Act are re- placed by the following: Issue of new or amended patents 47 (1) Whenever any patent is deemed defective or in- operative by reason of insufficient description and speci- fication, or by reason of the patentee’s claiming more or less than they had a right to claim as new, but at the same time it appears that the error arose from inadvertence, accident or mistake, without any fraudulent or deceptive intention, the Commissioner may, on the surrender of the patent within four years from its date and the pay- ment of a further prescribed fee, cause a new patent, in accordance with an amended description and specifica- tion made by the patentee, to be issued to them for the same invention for the then unexpired term referred to in section 44 or 45 — and, if applicable, for the then unex- pired additional term granted under section 46.1 — of the original patent. Certificate of supplementary protection (1.1) Subsection (1) also applies in the case where the original patent is set out in a certificate of supplementary protection and the original patent’s term referred to in section 44 or 45 has expired — or, if applicable, both that term and the additional term granted under section 46.1 have expired — except that in that case the issuance of the new patent, whose term or terms remain expired, is for the purpose of establishing the rights, privileges and liberties granted under the certificate. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 26 Patent Act Amendments to the Act Sections 493-494 Page 337 495 Paragraph 48.4(3)(c) of the Act is replaced by the following: (c) amends any claim of the patent or incorporates a new claim in the patent, the amended claim or new claim shall be effective, from the date of the certificate, for the unexpired term — and, if applicable, for the un- expired additional term — of the patent. 496 Subsection 55.11(1) of the Act is amended by striking out “and” at the end of paragraph (b) and by adding the following after paragraph (c): (d) a patent in respect of which the prescribed fee re- ferred to in subsection 46.2(2) was not paid on or be- fore the applicable prescribed date referred to in that subsection, without taking into account subsection 46.2(3); and (e) a patent in respect of which an additional term is granted under section 46.1 after the expiry of the term referred to in section 44, without taking into account section 46. 497 Subsection 106(4) of the Act is replaced by the following: Exception (4) Despite subsection (3), no application shall be filed within the prescribed period preceding the expiry of the term of the patent referred to in section 44 without taking into account section 46. 498 (1) Subsection 116(2) of the Act is replaced by the following: Taking effect (2) A certificate of supplementary protection takes effect on the expiry of the term referred to in section 44, with- out taking into account section 46, of the patent set out in the certificate, but the certificate takes effect only if the patent remains valid until, and is not void before, the ex- piry of that term. (2) Section 116 of the Act is amended by adding the following after subsection (5): For greater certainty (6) For greater certainty, the certificate’s term runs con- currently with any additional term granted under section 46.1. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 26 Patent Act Amendments to the Act Sections 495-498 Page 338 Coming into Force January 1, 2025 or order in council 499 The provisions of this Division come into force on January 1, 2025 or on any earlier day or days to be fixed by order of the Governor in Council. DIVISION 27 R.S., c. F-27 Food and Drugs Act (Natural Health Products) Amendments to the Act 500 The definition therapeutic product in section 2 of the Food and Drugs Act is replaced by the fol- lowing: therapeutic product means a drug or device or any combination of drugs and devices; (produit thérapeu- tique) 501 (1) The Act is amended by adding the follow- ing after section 21.32: Definition of therapeutic product 21.321 Despite the definition therapeutic product in section 2, in sections 21.31 and 21.32 therapeutic prod- uct means a drug or device or any combination of drugs and devices, but does not include a natural health prod- uct within the meaning of the Natural Health Products Regulations. (2) Section 21.321 of the Act is repealed. 502 (1) Section 21.8 of the Act is renumbered as subsection 21.8(1) and is amended by adding the following: Definition of therapeutic product (2) Despite the definition therapeutic product in section 2, in subsection (1) therapeutic product means a drug or device or any combination of drugs and devices, but does not include a natural health product within the meaning of the Natural Health Products Regulations. (2) Subsection 21.8(2) of the Act is repealed. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 26 Patent Act Coming into Force Sections 499-502 Page 339 Transitional Provision Authorizations and licences 503 The definition therapeutic product authoriza- tion in section 2 of the Food and Drugs Act also includes (a) an authorization, including a licence, that was issued, before the day on which this sec- tion comes into force, under the regulations made under that Act and that authorizes, as the case may be, the import, sale, manufac- ture, packaging or labelling of a natural health product, within the meaning of the Natural Health Products Regulations as those Regula- tions read immediately before that day; or (b) an authorization, including a licence, that would fall within paragraph (a) if the autho- rization were not suspended. Coming into Force Order in council 504 (1) Subsection 501(2) comes into force on a day to be fixed by order of the Governor in Coun- cil. Order in council (2) Subsection 502(2) comes into force on a day to be fixed by order of the Governor in Council. DIVISION 28 R.S., c. F-27 Food and Drugs Act (Cosmetics Testing on Animals) Amendments to the Act 505 The Food and Drugs Act is amended by adding the following after section 16: Prohibited sales — animal testing 16.1 (1) No person shall sell a cosmetic unless the per- son can establish the safety of the cosmetic without rely- ing on data derived from a test conducted on an animal that could cause pain, suffering or injury, whether physi- cal or mental, to the animal. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 27 Food and Drugs Act (Natural Health Products) Transitional Provision Sections 503-505 Page 340 Exceptions (2) The prohibition in subsection (1) does not apply if (a) the Government of Canada has published the data in a scientific journal or on a Government of Canada website; (b) the data is publicly available and is derived from a test that was not sponsored by or conducted by or on behalf of a person who manufactures, imports or sells the cosmetic; (c) the following conditions are met: (i) the data is derived from a test that was conduct- ed on a substance in order to meet (A) a requirement under a provision of an Act of Parliament or any of its regulations that applied at the time that the test was conducted, except a requirement that relates only to cosmetics under a provision of this Act or the regulations, or (B) a requirement that does not relate to cosmet- ics under the law that applied in a foreign state at the time that the test was conducted, (ii) the substance is or has been used in a product that is not a cosmetic and that is or has been legally sold in the country where the requirement in ques- tion applied, and (iii) the test was necessary to meet the requirement in order to sell the product in that country; (d) the data is derived from a test that was conducted before the day on which this section comes into force; (e) the cosmetic was sold in Canada at any time before the day on which this section comes into force; or (f) any prescribed circumstance applies. Prohibition — animal testing 16.2 No person shall conduct a test on an animal that could cause pain, suffering or injury, whether physical or mental, to the animal if the purpose of the test is to meet, with respect to a cosmetic, a requirement under a provi- sion of this Act or the regulations or to meet a require- ment that relates to the safety of cosmetics under the law that applies in a foreign state. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 28 Food and Drugs Act (Cosmetics Testing on Animals) Amendments to the Act Section 505 Page 341 Prohibited claims — animal testing 16.3 (1) No person shall make a claim on the label of or in an advertisement for a cosmetic that is likely to create an impression that the cosmetic was not tested on ani- mals after the day on which this section comes into force unless the person has evidence that no such testing oc- curred after that day. Provision of evidence (2) A person who makes a claim described in subsection (1) shall, on the request of the Minister, provide the Min- ister with the evidence referred to in that subsection. 506 (1) Subsection 30(1) of the Act is amended by adding the following after paragraph (h): (h.01) respecting the provision to the Minister of evi- dence under subsection 16.3(2); (2) Section 30 of the Act is amended by adding the following after subsection (1.4): Regulations — animal testing (1.5) Without limiting the power conferred by any other subsection of this section, the Governor in Council may make any regulations that the Governor in Council con- siders necessary for the purpose of preventing, in respect of cosmetics, the conduct of a test on an animal that could cause pain, suffering or injury, whether physical or mental, to the animal, or preventing the purchaser or consumer of a cosmetic from being deceived or misled in respect of whether the cosmetic was tested on animals. Coming into Force Six months after royal assent 507 This Division comes into force on the day that, in the sixth month after the month in which this Act receives royal assent, has the same cal- endar number as the day on which this Act re- ceives royal assent or, if that sixth month has no day with that number, the last day of that sixth month. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 28 Food and Drugs Act (Cosmetics Testing on Animals) Amendments to the Act Sections 505-507 Page 342 DIVISION 29 Dental Care Measures Act Enactment of Act 508 The Dental Care Measures Act is enacted as follows: An Act respecting certain matters in relation to the Canadian Dental Care Plan Short Title Short title 1 This Act may be cited as the Dental Care Measures Act. Definition Definition of Canadian Dental Care Plan 2 In this Act, Canadian Dental Care Plan means the plan established under the authority of the Department of Health Act in respect of dental service for individuals. His Majesty Binding on His Majesty 3 This Act is binding on His Majesty in right of Canada or a province. Reporting Obligation 4 (1) Every person who is required to make an informa- tion return in prescribed form under subsection 200(1) of the Income Tax Regulations in respect of a payment re- ferred to in paragraph 153(1)(a) or (b) of the Income Tax Act must, in the information return for every person (in this section referred to as the “payee”) in respect of whom the payment is made, indicate whether the payee or any of their family members were, on December 31 of the taxation year to which the information return relates, eligible in respect of the payee’s employment or former employment, or that of the payee’s spouse or common- law partner, to access any dental care insurance, or cov- erage of dental services of any kind, offered by the per- son. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 29 Dental Care Measures Act Section 508 Page 343 Application (2) Subsection (1) applies only in respect of the 2023 and subsequent taxation years. Definition of family member (3) In this section, family member, in respect of a pay- ee, means (a) the payee’s spouse or common-law partner; (b) a child of the payee (including a child of the pay- ee’s spouse or common-law partner) who is under the age of 18 years; and (c) a child of the payee (including a child of the pay- ee’s spouse or common-law partner) who is 18 years of age or older and dependent, by reason of mental or physical infirmity, on the payee for support. Information return 5 For the purposes of assisting the Minister of Health in the administration and enforcement of the Canadian Dental Care Plan, the Minister of National Revenue may, in the information return that a person is required to make under subsection 200(1) of the Income Tax Regula- tions, ask for the information required under subsection 4(1) of this Act and, for those purposes, may collect that information. Purpose of information obtained 6 Any information obtained under subsection 4(1) is in- formation obtained for the purposes of the administra- tion and enforcement of the Canadian Dental Care Plan and not for the purposes of the Income Tax Act. Disclosure of Information Disclosure of information 7 The Minister of National Revenue or any person acting on behalf of that Minister may provide any information collected under section 5 (a) to the Minister of Health, for the purposes of the administration and the enforcement of the Canadian Dental Care Plan or the formulation or evaluation of policy for that plan; and (b) to an official of the Department of Employment and Social Development, for the purposes of assisting the Minister of Health in the administration and the enforcement of the Canadian Dental Care Plan or the formulation or evaluation of policy for that plan. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 29 Dental Care Measures Act Section 508 Page 344 Violations Violations 8 (1) A person commits a violation if they (a) fail to comply with subsection 4(1) in respect of any person in respect of whom the income return re- ferred to in that subsection is to be made; or (b) knowingly make, in the information return re- ferred to in that subsection, a representation that is false or misleading in relation to the information re- quired under that subsection in respect of any person. Penalty (2) The Minister of Health may impose a penalty of $100 on a person for each violation if that Minister is of the opinion that the person has committed a violation. Purpose of penalty (3) The purpose of the penalty is to promote compliance with this Act and not to punish. Limitation on imposition of penalty 9 A penalty must not be imposed under section 8 if more than three years have passed since the day on which the act that would constitute the violation occurred. Rescission or reduction of penalty 10 The Minister of Health may rescind the imposition of a penalty under section 8, or reduce the penalty, on the presentation of new facts or on being of the opinion that the penalty was imposed without knowledge of, or on the basis of a mistake as to, some material fact. Recovery as debt due to His Majesty 11 A penalty imposed under section 8 constitutes a debt due to His Majesty and the debt is payable and may be recovered by the Minister of Health as of the day on which the penalty is imposed. Social Insurance Number Social Insurance Number 12 The Minister of Health is authorized to collect and use, for the purposes of the administration and enforce- ment of the Canadian Dental Care Plan, the Social 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 29 Dental Care Measures Act Section 508 Page 345 Insurance Number of a person who makes an application under the plan. DIVISION 30 R.S., c. C-10 Canada Post Corporation Act 509 Subsection 41(1) of the Canada Post Corpo- ration Act is replaced by the following: Inspection of mail 41 (1) The Corporation may open any mail, other than a letter, if it has reasonable grounds to suspect that (a) the conditions prescribed by regulations made un- der paragraph 19(1)(c) have not been complied with; (b) the manner prescribed by regulations made under paragraph 19(1)(e) has not been adhered to; or (c) the mail is non-mailable matter. DIVISION 31 Royal Style and Titles Act, 2023 Enactment of Act 510 The Royal Style and Titles Act, 2023 is enact- ed as follows: An Act respecting the Royal Style and Titles, 2023 Preamble Whereas it is desirable that the Parliament of Canada should assent to the issue of a Royal Proclamation establishing the Royal Style and Titles for Canada; Now, therefore, His Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: Short title 1 This Act may be cited as the Royal Style and Titles Act, 2023. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 29 Dental Care Measures Act Sections 508-510 Page 346 Assent to Royal Style and Titles 2 The Parliament of Canada assents to the issue by His Majesty of His Royal Proclamation under the Great Seal of Canada establishing for Canada the following Royal Style and Titles: Charles the Third, by the Grace of God King of Canada and His other Realms and Territories, Head of the Common- wealth. DIVISION 32 Canada Growth Fund 1999, c. 34 Public Sector Pension Investment Board Act 511 The Public Sector Pension Investment Board Act is amended by adding the following af- ter section 5: Investment management services 5.1 (1) Without limiting the generality of subsection 5(1) and despite subsection 5(2), the Board may incorpo- rate a subsidiary for the purpose of providing investment management services to the Canada Growth Fund Inc. in accordance with any terms agreed to by the subsidiary and the Canada Growth Fund Inc. Costs (2) Despite subsection 4(2), the costs associated with the establishment and operation of the subsidiary and with the provision of investment management services are to be paid by the Canada Growth Fund Inc. 512 The Act is amended by adding the following after section 32: Non-application — investment management services 32.1 The investment policies, standards and procedures established under section 32 do not apply in respect of a subsidiary incorporated for the purpose of providing in- vestment management services to the Canada Growth Fund Inc. 513 The Act is amended by adding the following after section 50: Non-application of regulations — investment management services 50.1 Regulations made under section 50 do not apply in respect of a subsidiary incorporated for the purpose of 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 31 Royal Style and Titles Act, 2023 Sections 510-513 Page 347 providing investment management services to the Canada Growth Fund Inc. 2022, c. 19 Fall Economic Statement Implementation Act, 2022 Amendments to the Act 514 Subsection 118(2) of the Fall Economic State- ment Implementation Act, 2022 is replaced by the following: Consolidated Revenue Fund (2) On the requisition of the Minister of Finance, there may be paid out of the Consolidated Rev- enue Fund amounts not exceeding $15,000,000,000 in the aggregate, or any greater amount that is specified in an appropriation Act, for the acquisi- tion of shares under subsection (1). 515 Section 119 of the Act is replaced by the fol- lowing: Not agent of His Majesty 119 The subsidiary referred to in section 118 is not an agent of His Majesty in right of Canada. Coming into Force December 15, 2022 516 Section 515 is deemed to have come into force on December 15, 2022. DIVISION 33 Legislation Related to Financial Institutions R.S., c. 18 (3rd Supp.), Part I Office of the Superintendent of Financial Institutions Act 517 (1) Subsection 4(2) of the Office of the Super- intendent of Financial Institutions Act is amend- ed by adding the following after paragraph (a): (a.1) to supervise financial institutions in order to de- termine whether they have adequate policies and procedures to protect themselves against threats to 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 32 Canada Growth Fund Public Sector Pension Investment Board Act Sections 513-517 Page 348 their integrity or security, including foreign interfer- ence; (2) Paragraph 4(2)(b) of the Act is replaced by the following: (b) to promptly advise the management and board of directors of a financial institution in the event the in- stitution is not in sound financial condition or is not complying with its governing statute law or superviso- ry requirements under that law and, in such a case, to take, or require the management or board to take, the necessary corrective measures or series of measures to deal with the situation without delay; (b.1) to promptly advise the management and board of directors of a financial institution in the event the institution does not have adequate policies and proce- dures to protect itself against threats to its integrity or security and, in such a case, to take, or require the management or board to take, the necessary corrective measures or series of measures to deal with the situa- tion without delay; 1991, c. 45 Trust and Loan Companies Act 518 The Trust and Loan Companies Act is amended by adding the following after section 14: Policies and procedures — integrity or security 14.1 A company shall establish and adhere to policies and procedures to protect itself against threats to its in- tegrity or security, including foreign interference. 519 Paragraphs 164(e) and (f) of the Act are re- placed by the following: (e) a person who is prohibited by section 386 or 399 from exercising voting rights attached to shares of the company or whose voting rights attached to the shares are suspended under section 401.1 or subsection 527.5(4); (f) a person who is an officer, director or full time em- ployee of an entity that is prohibited by section 386 or 399 from exercising voting rights attached to shares of the company or whose voting rights attached to the shares are suspended under section 401.1 or subsec- tion 527.5(4); 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Office of the Superintendent of Financial Institutions Act Sections 517-519 Page 349 520 The Act is amended by adding the following after section 401: Disposition — threat to integrity or security 401.1 (1) If the Minister is of the opinion that a per- son’s holding or beneficial ownership of shares of a com- pany poses a threat to the integrity or security of the company or the financial system in Canada or a threat to national security, the Minister may, by order, direct that person and any person controlled by that person to dis- pose of any number of shares of the company held or beneficially owned by any of the persons that the Minis- ter specifies in the order, within the time specified in the order and in the proportion, if any, as between the per- son and the persons controlled by the person that is spec- ified in the order. Suspension of rights (2) A direction made under subsection (1) may also sus- pend any of the rights under Part VI attached to the shares referred to in that subsection until the shares are disposed of in accordance with the direction. Representations (3) No direction shall be made under subsection (1) un- less the Minister has provided each person to whom the direction relates and the company concerned with a rea- sonable opportunity to make representations. Temporary direction (4) If, in the Minister’s opinion, the length of time re- quired for representations to be made under subsection (3) might be prejudicial to the public interest, the Minis- ter may make a temporary direction to suspend any of the rights under Part VI attached to any of the shares re- ferred to in subsection (1). Cessation of effect (5) A temporary direction ceases to have effect on the earlier of (a) the expiry of 30 days after the day on which it takes effect or of a shorter period that is specified in the temporary direction, and (b) if a direction is made under subsection (1) in re- spect of the shares, the day on which that direction takes effect. Appeal (6) Any person with respect to whom a direction has been made under subsection (1) may, within 30 days af- ter the day on which the direction was made, appeal the matter in accordance with section 530. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Trust and Loan Companies Act Section 520 Page 350 Notice — Committee and Review Agency (7) If a direction has been made under subsection (1) or (4) for reasons related to national security, the Minister shall, within 30 days after the day on which the direction was made, notify (a) the Committee, as defined in section 2 of the Na- tional Security and Intelligence Committee of Parlia- mentarians Act; and (b) the Review Agency, as defined in section 2 of the National Security and Intelligence Review Agency Act. 521 Subsection 402(1) of the Act is replaced by the following: Application to court 402 (1) If a person fails to comply with a direction made under subsection 396(7), 401(1) or 401.1(1), an applica- tion on behalf of the Minister may be made to a court for an order to enforce the direction. 522 Subsection 502(1) of the Act is replaced by the following: Production of information and documents 502 (1) The Superintendent may, by order, direct a per- son who controls a company or any entity that is affiliat- ed with a company to provide the Superintendent with any information or documents that may be specified in the order if the Superintendent believes that the produc- tion of the information or documents is necessary in or- der to be satisfied that (a) the provisions of this Act are being duly observed and that the company is in a sound financial condi- tion; or (b) the company has adequate policies and procedures to protect itself against threats to its integrity or secu- rity. 523 (1) Subsection 505(1) of the Act is replaced by the following: Examination of companies 505 (1) The Superintendent, from time to time, but at least once in each calendar year, shall make or cause to be made any examination and inquiry into the business and affairs of each company that the Superintendent con- siders to be necessary or expedient to determine whether the company is complying with the provisions of this Act, whether the company is in a sound financial condition and whether the company has adequate policies and 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Trust and Loan Companies Act Sections 520-523 Page 351 procedures to protect itself against threats to its integrity or security. After the conclusion of each examination and inquiry, the Superintendent shall report on it to the Min- ister. (2) Section 505 of the Act is amended by adding the following after subsection (1): Integrity or security (1.1) The Superintendent, from time to time, shall make or cause to be made any examination and inquiry into the business and affairs of any company that the Superinten- dent considers to be necessary or expedient to determine whether the company has adequate policies and proce- dures to protect itself against threats to its integrity or se- curity. After the conclusion of each examination and in- quiry, the Superintendent shall report on it to the Minis- ter. (3) Subsection 505(1.1) of the Act is repealed. 524 Section 506.1 of the Act is replaced by the fol- lowing: Prudential agreement 506.1 The Superintendent may enter into an agreement, called a “prudential agreement”, with a company for the purposes of implementing any measure designed to maintain or improve its safety and soundness or estab- lishing adequate policies and procedures to protect it against threats to its integrity or security. 525 Subsections 507(2) and (3) of the Act are re- placed by the following: Directions — policies and procedures (1.1) If, in the opinion of the Superintendent, a company does not have adequate policies and procedures to pro- tect itself against threats to its integrity or security, the Superintendent may direct the company to take any mea- sures that in the opinion of the Superintendent are nec- essary to remedy the situation. Opportunity for representations (2) Subject to subsection (3), no direction shall be issued to a company or person under subsection (1) or (1.1) un- less the company or person is provided with a reasonable opportunity to make representations in respect of the matter. Temporary direction (3) If, in the opinion of the Superintendent, the length of time required for representations to be made under sub- section (2) might be prejudicial to the public interest, the 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Trust and Loan Companies Act Sections 523-525 Page 352 Superintendent may make a temporary direction with re- spect to the matters referred to in paragraphs (1)(a) and (b) or subsection (1.1) having effect for a period of not more than 15 days. 526 Paragraph 509(1)(a) of the Act is replaced by the following: (a) is contravening or has failed to comply with a pru- dential agreement entered into under section 506.1 or a direction of the Superintendent issued to the compa- ny or person under subsection 507(1), (1.1) or (3), 527 (1) Subsection 510(1.1) of the Act is amended by striking out “or” at the end of paragraph (g) and by adding the following after that paragraph: (g.1) in the opinion of the Superintendent, the com- pany’s depositors and creditors may be detrimentally affected because all of the common shares of the com- pany must be disposed of under a direction made by the Minister or because there is a prohibition under this Act in respect of the exercise of the right to vote attached to all of the common shares of the company; (2) Subsection 510(1.1) of the Act is amended by adding the following after paragraph (h): (i) in the opinion of the Superintendent, the continued operation of the company by the directors of the com- pany or by the officers of the company responsible for its management would be materially prejudicial to its integrity or security; or (j) in the opinion of the Superintendent, the continued operation of the company by the directors of the com- pany or by the officers of the company responsible for its management would pose a risk to national security. (3) Section 510 of the Act is amended by adding the following after subsection (1.1): Minister’s powers (1.11) Subject to this Act, the Minister may, for reasons related to national security, direct the Superintendent to 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Trust and Loan Companies Act Sections 525-527 Page 353 (a) take control, for a period not exceeding 16 days, of the assets of the company and the assets held in trust by or under the administration of the company; (b) take control, for a period exceeding 16 days, of the assets of the company and the assets held in trust by or under the administration of the company; (c) if control of assets has been taken under para- graph (a), continue the control beyond the 16 days re- ferred to in that paragraph; or (d) take control of the company. (4) Subsection 510(2) of the Act is replaced by the following: Notice — up to 16 days (1.3) If the Superintendent takes control of the assets of a company under paragraph (1.11)(a), the Superinten- dent shall notify the company that control has been taken at the direction of the Minister. Notice — more than 16 days (1.4) If the Minister is considering whether to exercise the powers under any of paragraphs (1.11)(b) to (d), the Superintendent shall notify the company of the action that is being considered and of its right to make written representations to the Minister within the time specified in the notice, not exceeding 10 days after it receives the notice. Notice — Committee and Review Agency (1.5) Within 30 days after exercising any of the powers under subsection (1.11), the Minister shall notify (a) the Committee, as defined in section 2 of the Na- tional Security and Intelligence Committee of Parlia- mentarians Act; and (b) the Review Agency, as defined in section 2 of the National Security and Intelligence Review Agency Act. Objectives of Superintendent (2) If the Superintendent has control under subsection (1) or (1.11) of the assets of a company referred to in that subsection, the Superintendent may do all things neces- sary or expedient to protect the rights and interests of the depositors and creditors of the company or the beneficia- ries of any trust under the administration of the compa- ny. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Trust and Loan Companies Act Section 527 Page 354 (5) The portion of subsection 510(3) of the Act be- fore paragraph (a) is replaced by the following: Powers of Superintendent (3) If the Superintendent has control under subsection (1) or (1.11) of the assets of a company referred to in that subsection, 528 (1) Subsection 514(1) of the English version of the Act is replaced by the following: Powers of directors and officers suspended 514 (1) If the Superintendent takes control of a compa- ny under subparagraph 510(1)(b)(iii) or paragraph 510(1.11)(d), the powers, duties, functions, rights and privileges of the directors of the company and of the offi- cers of the company responsible for its management are suspended. (2) The portion of subsection 514(2) of the English version of the Act before paragraph (a) is re- placed by the following: Superintendent to manage company (2) If the Superintendent takes control of a company un- der subparagraph 510(1)(b)(iii) or paragraph 510(1.11)(d), the Superintendent shall manage the busi- ness and affairs of the company and in so doing the Su- perintendent (3) Subsection 514(3) of the English version of the Act is replaced by the following: Persons to assist (3) If the Superintendent takes control of a company un- der subparagraph 510(1)(b)(iii) or paragraph 510(1.11)(d), the Superintendent may appoint one or more persons to assist in the management of the compa- ny. 529 Section 515 of the Act is renumbered as sub- section 515(1) and is amended by adding the fol- lowing: Expiration of control — Minister’s direction (2) Control by the Superintendent under subsection 510(1.11) of a company or of the assets of a company and the assets held in trust by or under the administration of the company expires on the day on which a notice by the Superintendent is sent to the directors and officers who conducted the business and affairs of the company stat- ing that the Minister is of the opinion, on the recommen- dation of the Superintendant, that corrective measures 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Trust and Loan Companies Act Sections 527-529 Page 355 have been taken in response to the reasons related to na- tional security and that the company can resume control of its business and affairs. 530 Paragraphs 515.1(a) and (b) of the Act are re- placed by the following: (a) the assets of the company and the assets held in trust by or under the administration of the company are under the control of the Superintendent under subparagraph 510(1)(b)(i) or (ii) or paragraph 510(1.11)(b) or (c); or (b) the company is under the control of the Superin- tendent under subparagraph 510(1)(b)(iii) or para- graph 510(1.11)(d). 531 The portion of section 516 of the English ver- sion of the Act before paragraph (a) is replaced by the following: Requirement to relinquish control 516 If no action has been taken by the Superintendent under section 515.1 and, after 30 days following the tak- ing of control by the Superintendent under subsection 510(1) or (1.11) of a company or of the assets of a compa- ny and the assets held in trust by or under the adminis- tration of the company, the Superintendent receives from its board of directors a notice in writing requesting the Superintendent to relinquish control, the Superintendent shall, not later than 12 days after receipt of the notice, 532 Section 517 of the English version of the Act is replaced by the following: Advisory committee 517 The Superintendent may, from among the compa- nies that are subject to an assessment under section 23 of the Office of the Superintendent of Financial Institutions Act and required to share in the expenses resulting from the taking of control of a company under subsection 510(1) or (1.11), appoint a committee of not more than six members to advise the Superintendent in respect of assets, management and all other matters pertinent to the duties and responsibilities of the Superintendent in exercising control of the company. 533 Subsection 518(1) of the English version of the Act is replaced by the following: Expenses payable by company 518 (1) If the Superintendent has taken control of a company under subparagraph 510(1)(b)(iii) or paragraph 510(1.11)(d) and the control expires or is relinquished under section 515 or paragraph 516(a), the 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Trust and Loan Companies Act Sections 529-533 Page 356 Superintendent may direct that the company be liable for repayment of all or part of the expenses resulting from the taking of control of the company and assessed against and paid by other companies under section 23 of the Of- fice of the Superintendent of Financial Institutions Act, together with any interest in respect of the expenses at any rate that is specified by the Superintendent. 534 Section 519 of the English version of the Act is replaced by the following: Priority of claim in liquidation 519 In the case of the winding-up of a company, the ex- penses resulting from the taking of control of the compa- ny under subsection 510(1) or (1.11) and assessed against and paid by other companies under section 23 of the Of- fice of the Superintendent of Financial Institutions Act, and interest in respect of the expenses at any rate that is specified by the Superintendent, constitute a claim of His Majesty in right of Canada against the assets of the com- pany that ranks after all other claims but prior to any claim in respect of the shares of the company. 535 Subsection 527.4(1) of the Act is replaced by the following: Minister — terms, conditions and undertakings 527.4 (1) In addition to any other action that may be taken under this Act, the Minister may, in granting an approval, impose any terms and conditions or require any undertaking that the Minister considers appropriate, including any terms, conditions or undertakings speci- fied by the Superintendent to maintain or improve the safety and soundness of any financial institution regulat- ed under an Act of Parliament to which the approval re- lates or that might be affected by it or to ensure that such a financial institution has adequate policies and proce- dures to protect itself against threats to its integrity or se- curity. 536 Subsection 527.5(3) of the Act is replaced by the following: Representations (3) Before taking any action under subsection (1) or (2), the Minister or the Superintendent, as the case may be, shall give the person concerned a reasonable opportunity to make representations. Temporary suspension or amendment (4) If, in the Minister’s opinion, the length of time re- quired for representations to be made under subsection (3) might be prejudicial to the public interest, the Minis- ter may temporarily suspend or amend any approval granted by the Minister. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Trust and Loan Companies Act Sections 533-536 Page 357 Cessation of effect (5) A temporary suspension or amendment of an ap- proval ceases to have effect on the earlier of (a) the expiry of 30 days after the day on which it takes effect or of a shorter period that is specified by the Minister, and (b) if the approval is revoked, suspended or amended under subsection (1), the day on which the revocation, suspension or amendment takes effect. 537 The Act is amended by adding the following after section 527.5: Confidential undertaking 527.51 (1) If, in the Minister’s opinion, the disclosure of information about an undertaking required under sub- section 527.4(1) or 527.5(1) or (4), or information that could reveal the existence of the undertaking, could pose a threat to the integrity or security of the financial insti- tution to which the undertaking relates or could be inju- rious to national security, the Minister may specify that the information is confidential and shall be treated ac- cordingly. Prohibition (2) Despite anything in this Act but subject to subsection (3), it is prohibited to disclose any confidential informa- tion referred to in subsection (1) except in accordance with any terms or conditions that the Minister may speci- fy in the undertaking. Notice — Committee and Review Agency (3) If the Minister specifies under subsection (1) that in- formation referred to in that subsection is confidential for reasons related to national security, the Minister shall, within 30 days after the day on which the undertak- ing in question is required, notify (a) the Committee, as defined in section 2 of the Na- tional Security and Intelligence Committee of Parlia- mentarians Act; and (b) the Review Agency, as defined in section 2 of the National Security and Intelligence Review Agency Act. 538 Subsection 530(1) of the Act is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Trust and Loan Companies Act Sections 536-538 Page 358 Appeal to Federal Court 530 (1) An appeal lies to the Federal Court from any di- rection of the Minister made under subsection 396(7), 401(1) or 401.1(1). 1991, c. 46 Bank Act 539 The Bank Act is amended by adding the fol- lowing after section 15: Policies and procedures — integrity or security 15.1 A bank shall establish and adhere to policies and procedures to protect itself against threats to its integrity or security, including foreign interference. 540 Paragraphs 160(e) and (f) of the Act are re- placed by the following: (e) a person who is prohibited by subsection 156.09(9) or section 392 or 401.3 from exercising voting rights attached to shares of the bank or whose voting rights attached to the shares are suspended under section 402.2 or subsection 973.03(4); (f) a person who is an officer, director or full time em- ployee of an entity that is prohibited by subsection 156.09(9) or section 392 or 401.3 from exercising voting rights attached to shares of the bank or whose voting rights attached to the shares are suspended under sec- tion 402.2 or subsection 973.03(4); 541 The Act is amended by adding the following after section 402.1: Disposition — threat to integrity or security 402.2 (1) If the Minister is of the opinion that a per- son’s holding or beneficial ownership of shares or mem- bership shares of a bank poses a threat to the integrity or security of the bank or the financial system in Canada or a threat to national security, the Minister may, by order, direct that person and any person controlled by that per- son to (a) dispose of any number of shares of the bank held or beneficially owned by any of the persons that the Minister specifies in the order, within the time speci- fied in the order and in the proportion, if any, as be- tween the person and the persons controlled by the person that is specified in the order; or (b) dispose of any number of membership shares of the bank held or beneficially owned by any of the 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Trust and Loan Companies Act Sections 538-541 Page 359 persons that the Minister specifies in the order, within the time specified in the order and in the proportion, if any, as between the person and the persons controlled by the person that is specified in the order. Suspension of rights (2) A direction made under subsection (1) may also sus- pend any of the rights under Part VI attached to the shares referred to in paragraph (1)(a) or the membership shares referred to in paragraph (1)(b) until the shares or membership shares are disposed of in accordance with the direction. Representations (3) No direction shall be made under subsection (1) un- less the Minister has provided each person to whom the direction relates and the bank concerned with a reason- able opportunity to make representations. Temporary direction (4) If, in the Minister’s opinion, the length of time re- quired for representations to be made under subsection (3) might be prejudicial to the public interest, the Minis- ter may make a temporary direction to suspend any of the rights under Part VI attached to any of the shares re- ferred to in paragraph (1)(a) or the membership shares referred to in paragraph (1)(b). Cessation of effect (5) A temporary direction ceases to have effect on the earlier of (a) the expiry of 30 days after the day on which it takes effect or of a shorter period that is specified in the temporary direction, and (b) if a direction is made under subsection (1) in re- spect of the shares or membership shares, the day on which that direction takes effect. Appeal (6) Any person with respect to whom a direction has been made under subsection (1) may, within 30 days af- ter the day on which the direction was made, appeal the matter in accordance with section 977. Notice — Committee and Review Agency (7) If a direction has been made under subsection (1) or (4) for reasons related to national security, the Minister shall, within 30 days after the day on which the direction was made, notify 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Bank Act Section 541 Page 360 (a) the Committee, as defined in section 2 of the Na- tional Security and Intelligence Committee of Parlia- mentarians Act; and (b) the Review Agency, as defined in section 2 of the National Security and Intelligence Review Agency Act. 542 Subsection 403(1) of the Act is replaced by the following: Application to court 403 (1) If a person fails to comply with a direction made under subsection 401.2(7), 402(1) or 402.2(1), an applica- tion on behalf of the Minister may be made to a court for an order to enforce the direction. 543 The Act is amended by adding the following after section 524.2: Policies and procedures — integrity or security 524.3 An authorized foreign bank shall establish and adhere to policies and procedures to protect itself against threats to its integrity or security in relation to its busi- ness in Canada. 544 (1) Subsection 613(1) of the Act is replaced by the following: Examination of authorized foreign banks 613 (1) The Superintendent, from time to time, but, in the case of an authorized foreign bank that is not subject to the restrictions and requirements referred to in sub- section 524(2), at least once in each calendar year, shall make or cause to be made any examination and inquiry into the business and affairs of each authorized foreign bank that the Superintendent considers to be necessary or expedient to determine whether the authorized foreign bank is complying with the provisions of this Act and whether the authorized foreign bank has adequate poli- cies and procedures to protect itself against threats to its integrity or security in relation to its business in Canada. After the conclusion of each examination and inquiry, the Superintendent shall report on it to the Minister. (2) Section 613 of the Act is amended by adding the following after subsection (1): Integrity or security (1.1) The Superintendent, from time to time, shall make or cause to be made any examination and inquiry into the business and affairs of any authorized foreign bank that the Superintendent considers to be necessary or expedi- ent to determine whether the authorized foreign bank 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Bank Act Sections 541-544 Page 361 has adequate policies and procedures to protect itself against threats to its integrity or security in relation to its business in Canada. After the conclusion of each exami- nation and inquiry, the Superintendent shall report on it to the Minister. (3) Subsection 613(1.1) of the Act is repealed. 545 Section 614.1 of the Act is replaced by the fol- lowing: Prudential agreement 614.1 The Superintendent may enter into an agreement, called a “prudential agreement”, with an authorized for- eign bank for the purposes of implementing any measure designed to protect the interests of its depositors and creditors or establishing adequate policies and proce- dures to protect it against threats to its integrity or secu- rity in relation to its business in Canada. 546 Subsections 615(2) and (3) of the Act are re- placed by the following: Directions — policies and procedures (1.1) If, in the opinion of the Superintendent, an autho- rized foreign bank does not have adequate policies and procedures to protect itself against threats to its integrity or security in relation to its business in Canada, the Su- perintendent may direct the authorized foreign bank to take any measures that in the opinion of the Superinten- dent are necessary to remedy the situation. Opportunity for representations (2) Subject to subsection (3), no direction shall be issued under subsection (1) or (1.1) to an authorized foreign bank or person unless the authorized foreign bank or person is provided with a reasonable opportunity to make representations in respect of the matter. Temporary direction (3) If, in the opinion of the Superintendent, the length of time required for representations to be made might be prejudicial to the public interest, the Superintendent may make a temporary direction with respect to the matters referred to in paragraphs (1)(a) and (b) or subsection (1.1) having effect for a period of not more than 15 days. 547 Paragraph 616(1)(a) of the Act is replaced by the following: (a) is contravening or has failed to comply with a pru- dential agreement entered into under section 614.1 or 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Bank Act Sections 544-547 Page 362 a direction of the Superintendent made under subsec- tion 615(1), (1.1) or (3), 548 (1) Subsection 619(2) of the Act is amended by striking out “or” at the end of paragraph (f) and by adding the following after paragraph (g): (h) in the opinion of the Superintendent, the contin- ued operation of the authorized foreign bank in Canada would be materially prejudicial to its integrity or security in relation to its business in Canada; or (i) in the opinion of the Superintendent, the continued operation of the authorized foreign bank in Canada would pose a risk to national security. (2) Section 619 of the Act is amended by adding the following after subsection (2): Minister’s powers (2.1) Subject to this Act, the Minister may, for reasons related to national security, direct the Superintendent to (a) take control, for a period not exceeding 16 days, of the assets of the authorized foreign bank; (b) take control, for a period exceeding 16 days, of the assets of the authorized foreign bank; or (c) if control of assets has been taken under para- graph (a), continue the control beyond the 16 days re- ferred to in that paragraph. (3) Subsection 619(4) of the Act is replaced by the following: Notice — up to 16 days (3.1) If the Superintendent takes control of the assets of an authorized foreign bank under paragraph (2.1)(a), the Superintendent shall notify the authorized foreign bank that control has been taken at the direction of the Minis- ter. Notice — more than 16 days (3.2) If the Minister is considering whether to exercise the powers under paragraph (2.1)(b) or (c), the Superin- tendent shall notify the authorized foreign bank of the action that is being considered and of its right to make written representations to the Minister within the time 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Bank Act Sections 547-548 Page 363 specified in the notice, not exceeding 10 days after it re- ceives the notice. Notice — Committee and Review Agency (3.3) Within 30 days after exercising any of the powers under subsection (2.1), the Minister shall notify (a) the Committee, as defined in section 2 of the Na- tional Security and Intelligence Committee of Parlia- mentarians Act; and (b) the Review Agency, as defined in section 2 of the National Security and Intelligence Review Agency Act. Objectives of Superintendent (4) If the Superintendent has control under subsection (1) or (2.1) of the assets of an authorized foreign bank re- ferred to in that subsection, the Superintendent may do all things necessary or expedient to protect the rights and interests of the depositors and creditors of the authorized foreign bank in respect of its business in Canada. (4) The portion of subsection 619(5) of the Act be- fore paragraph (a) is replaced by the following: Powers of Superintendent (5) If the Superintendent has control under subsection (1) or (2.1) of the assets of an authorized foreign bank re- ferred to in that subsection, (5) Subsection 619(6) of the Act is replaced by the following: Persons to assist (6) If the Superintendent takes control of the assets of an authorized foreign bank under subparagraph (1)(b)(i) or (ii) or paragraph (2.1)(b) or (c), the Superintendent may appoint one or more persons to assist in the control of the assets. 549 Section 620 of the Act is renumbered as sub- section 620(1) and is amended by adding the fol- lowing: Expiration of control — Minister’s direction (2) Control by the Superintendent under subsection 619(2.1) of the assets of an authorized foreign bank ex- pires on the day on which a notice by the Superintendent is sent to the principal officer of the authorized foreign bank stating that the Minister is of the opinion, on the recommendation of the Superintendent, that corrective 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Bank Act Sections 548-549 Page 364 measures have been taken in response to the reasons re- lated to national security and that the authorized foreign bank can resume control of its assets. 550 Section 621 of the Act is replaced by the fol- lowing: Superintendent may request winding-up 621 The Superintendent may, at any time before the re- ceipt of a request under section 622 to relinquish control of the assets of an authorized foreign bank, request the Attorney General of Canada to apply for a winding-up or- der under section 10.1 of the Winding-up and Restruc- turing Act in respect of the authorized foreign bank, if the assets of the authorized foreign bank are under the control of the Superintendent under subparagraph 619(1)(b)(i) or (ii) or paragraph 619(2.1)(b) or (c). 551 The portion of section 622 of the English ver- sion of the Act before paragraph (a) is replaced by the following: Requirement to relinquish control 622 If no action has been taken by the Superintendent under section 621 and, after 30 days following the taking of control by the Superintendent under subsection 619(1) or (2.1) of the assets of an authorized foreign bank, the Superintendent receives from the principal officer of the authorized foreign bank a notice in writing requesting the Superintendent to relinquish control, the Superinten- dent shall, not later than 12 days after receipt of the no- tice, 552 Section 623 of the Act is replaced by the fol- lowing: Advisory committee 623 The Superintendent may appoint a committee of not more than six members to advise the Superintendent in respect of the assets and all other matters pertinent to the duties and responsibilities of the Superintendent in exercising control of the assets. The committee shall be appointed from among the banks and authorized foreign banks that are subject to an assessment under section 23 of the Office of the Superintendent of Financial Institu- tions Act and required to share in the expenses resulting from the taking of control of the assets of the authorized foreign bank under subsection 619(1) or (2.1). 553 Subsection 624(1) of the English version of the Act is replaced by the following: Expenses payable by authorized foreign bank 624 (1) If control of the assets of an authorized foreign bank has been taken under subparagraph 619(1)(b)(i) or 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Bank Act Sections 549-553 Page 365 (ii) or paragraph 619(2.1)(b) or (c) and the control ex- pires or is relinquished under section 620 or paragraph 622(a), the Superintendent may direct that the autho- rized foreign bank be liable for repayment of all or part of the expenses resulting from the taking of control of the assets and assessed against and paid by other authorized foreign banks and by banks under section 23 of the Office of the Superintendent of Financial Institutions Act, to- gether with any interest in respect of the expenses at any rate that is specified by the Superintendent. 554 Section 625 of the English version of the Act is replaced by the following: Priority of claim in liquidation 625 In the case of the winding-up of the business in Canada of an authorized foreign bank, the expenses re- sulting from the taking of control of the assets of the au- thorized foreign bank under subsection 619(1) or (2.1) and assessed against and paid by other authorized for- eign banks and by banks under section 23 of the Office of the Superintendent of Financial Institutions Act and in- terest in respect of the expenses at any rate that is speci- fied by the Superintendent, constitute a claim of His Majesty in right of Canada against the assets of the au- thorized foreign bank that ranks after any claim referred to in paragraph 627(1)(d). 555 Subsection 635(1) of the Act is replaced by the following: Production of information and documents 635 (1) The Superintendent may, by order, direct a per- son who controls a bank or any entity that is affiliated with a bank to provide the Superintendent with any in- formation or documents that may be specified in the or- der if the Superintendent believes that the production of the information or documents is necessary in order to be satisfied that (a) the provisions of this Act are being duly observed and that the bank is in a sound financial condition; or (b) the bank has adequate policies and procedures to protect itself against threats to its integrity or security. 556 (1) Subsection 643(1) of the Act is replaced by the following: Examination of banks 643 (1) The Superintendent, from time to time, but at least once in each calendar year, shall make or cause to be made any examination and inquiry into the business and affairs of each bank that the Superintendent consid- ers to be necessary or expedient to determine whether 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Bank Act Sections 553-556 Page 366 the bank is complying with the provisions of this Act, whether the bank is in a sound financial condition and whether the bank has adequate policies and procedures to protect itself against threats to its integrity or security. After the conclusion of each examination and inquiry, the Superintendent shall report on it to the Minister. (2) Section 643 of the Act is amended by adding the following after subsection (1): Integrity or security (1.1) The Superintendent, from time to time, shall make or cause to be made any examination and inquiry into the business and affairs of any bank that the Superintendent considers to be necessary or expedient to determine whether the bank has adequate policies and procedures to protect itself against threats to its integrity or security. After the conclusion of each examination and inquiry, the Superintendent shall report on it to the Minister. (3) Subsection 643(1.1) of the Act is repealed. 557 Section 644.1 of the Act is replaced by the fol- lowing: Prudential agreement 644.1 The Superintendent may enter into an agreement, called a “prudential agreement”, with a bank for the pur- poses of implementing any measure designed to main- tain or improve its safety and soundness or establishing adequate policies and procedures to protect it against threats to its integrity or security. 558 Subsections 645(2) and (3) of the Act are re- placed by the following: Directions — policies and procedures (1.1) If, in the opinion of the Superintendent, a bank does not have adequate policies and procedures to pro- tect itself against threats to its integrity or security, the Superintendent may direct the bank to take any mea- sures that in the opinion of the Superintendent are nec- essary to remedy the situation. Opportunity for representations (2) Subject to subsection (3), no direction shall be issued to a bank or person under subsection (1) or (1.1) unless the bank or person is provided with a reasonable oppor- tunity to make representations in respect of the matter. Temporary direction (3) If, in the opinion of the Superintendent, the length of time required for representations to be made under sub- section (2) might be prejudicial to the public interest, the 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Bank Act Sections 556-558 Page 367 Superintendent may make a temporary direction with re- spect to the matters referred to in paragraphs (1)(a) and (b) or subsection (1.1) having effect for a period of not more than 15 days. 559 Paragraph 646(1)(a) of the Act is replaced by the following: (a) is contravening or has failed to comply with a pru- dential agreement entered into under section 644.1 or a direction of the Superintendent made under subsec- tion 645(1), (1.1) or (3), 560 (1) Subsection 648(1.1) of the Act is amended by striking out “or” at the end of paragraph (g) and by adding the following after that paragraph: (g.1) in the opinion of the Superintendent, the bank’s depositors and creditors may be detrimentally affected because all of the common shares or membership shares of the bank must be disposed of under a direc- tion made by the Minister or because there is a prohi- bition under this Act in respect of the exercise of the right to vote attached to all of the common shares or membership shares of the bank; (2) Subsection 648(1.1) of the Act is amended by adding the following after paragraph (h): (i) in the opinion of the Superintendent, the continued operation of the bank by the directors of the bank or by the officers of the bank responsible for its manage- ment would be materially prejudicial to its integrity or security; or (j) in the opinion of the Superintendent, the continued operation of the bank by the directors of the bank or by the officers of the bank responsible for its manage- ment would pose a risk to national security. (3) Section 648 of the Act is amended by adding the following after subsection (1.1): Minister’s powers (1.11) Subject to this Act, the Minister may, for reasons related to national security, direct the Superintendent to 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Bank Act Sections 558-560 Page 368 (a) take control, for a period not exceeding 16 days, of the assets of the bank and the assets under its admin- istration; (b) take control, for a period exceeding 16 days, of the assets of the bank and the assets under its administra- tion; (c) if control of assets has been taken under para- graph (a), continue the control beyond the 16 days re- ferred to in that paragraph; or (d) take control of the bank. (4) Subsection 648(2) of the Act is replaced by the following: Notice — up to 16 days (1.3) If the Superintendent takes control of the assets of the bank under paragraph (1.11)(a), the Superintendent shall notify the bank that control has been taken at the direction of the Minister. Notice — more than 16 days (1.4) If the Minister is considering whether to exercise the powers under any of paragraphs (1.11)(b) to (d), the Superintendent shall notify the bank of the action that is being considered and of its right to make written repre- sentations to the Minister within the time specified in the notice, not exceeding 10 days after it receives the notice. Notice — Committee and Review Agency (1.5) Within 30 days after exercising any of the powers under subsection (1.11), the Minister shall notify (a) the Committee, as defined in section 2 of the Na- tional Security and Intelligence Committee of Parlia- mentarians Act; and (b) the Review Agency, as defined in section 2 of the National Security and Intelligence Review Agency Act. Objectives of Superintendent (2) If the Superintendent has control under subsection (1) or (1.11) of the assets of a bank referred to in that subsection, the Superintendent may do all things neces- sary or expedient to protect the rights and interests of the depositors and creditors of the bank. (5) The portion of subsection 648(3) of the Act be- fore paragraph (a) is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Bank Act Section 560 Page 369 Powers of Superintendent (3) If the Superintendent has control under subsection (1) or (1.11) of the assets of a bank referred to in that subsection, 561 (1) Subsection 649(1) of the English version of the Act is replaced by the following: Powers suspended 649 (1) If the Superintendent takes control of a bank under subparagraph 648(1)(b)(iii) or paragraph 648(1.11)(d), the powers, duties, functions, rights and privileges of the directors of the bank and of the officers of the bank responsible for its management are suspend- ed. If the bank is a federal credit union, the powers of the members to make, amend or repeal by-laws are also sus- pended. (2) The portion of subsection 649(2) of the English version of the Act before paragraph (a) is re- placed by the following: Superintendent to manage bank (2) If the Superintendent takes control of a bank under subparagraph 648(1)(b)(iii) or paragraph 648(1.11)(d), the Superintendent shall manage the business and affairs of the bank and in doing so the Superintendent (3) Subsection 649(3) of the English version of the Act is replaced by the following: Persons to assist (3) If the Superintendent takes control of a bank under subparagraph 648(1)(b)(iii) or paragraph 648(1.11)(d), the Superintendent may appoint one or more persons to assist in the management of the bank. 562 Section 650 of the Act is renumbered as sub- section 650(1) and is amended by adding the fol- lowing: Expiration of control — Minister’s direction (2) Control by the Superintendent under subsection 648(1.11) of a bank or of the assets of a bank expires on the day on which a notice by the Superintendent is sent to the directors and officers who conducted the business and affairs of the bank stating that the Minister is of the opinion, on the recommendation of the Superintendant, that corrective measures have been taken in response to the reasons related to national security and that the bank can resume control of its business and affairs. 563 Paragraphs 651(a) and (b) of the Act are re- placed by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Bank Act Sections 560-563 Page 370 (a) the assets of the bank are under the control of the Superintendent under subparagraph 648(1)(b)(i) or (ii) or paragraph 648(1.11)(b) or (c); or (b) the bank is under the control of the Superinten- dent under subparagraph 648(1)(b)(iii) or paragraph 648(1.11)(d). 564 The portion of section 652 of the English ver- sion of the Act before paragraph (a) is replaced by the following: Requirement to relinquish control 652 If no action has been taken by the Superintendent under section 651 and, after 30 days following the taking of control by the Superintendent under subsection 648(1) or (1.11) of a bank or of the assets of a bank, the Superin- tendent receives from its board of directors a notice in writing requesting the Superintendent to relinquish con- trol, the Superintendent shall, not later than 12 days after receipt of the notice, 565 Section 653 of the English version of the Act is replaced by the following: Advisory committee 653 The Superintendent may, from among the banks and authorized foreign banks that are subject to an as- sessment under section 23 of the Office of the Superin- tendent of Financial Institutions Act and required to share in the expenses resulting from the taking of control of a bank under subsection 648(1) or (1.11), appoint a committee of not more than six members to advise the Superintendent in respect of assets, management and all other matters pertinent to the duties and responsibilities of the Superintendent in exercising control of the bank. 566 Subsection 654(1) of the English version of the Act is replaced by the following: Expenses payable by bank 654 (1) If the Superintendent has taken control of a bank under subparagraph 648(1)(b)(iii) or paragraph 648(1.11)(d) and the control expires or is relinquished under section 650 or paragraph 652(a), the Superinten- dent may direct that the bank be liable for repayment of all or part of the expenses resulting from the taking of control of the bank and assessed against and paid by oth- er banks and by authorized foreign banks under section 23 of the Office of the Superintendent of Financial Insti- tutions Act, together with any interest in respect of the expenses at any rate that is specified by the Superinten- dent. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Bank Act Sections 563-566 Page 371 567 Section 655 of the English version of the Act is replaced by the following: Priority of claim in liquidation 655 In the case of the winding-up of a bank, the expens- es resulting from the taking of control of the bank under subsection 648(1) or (1.11) and assessed against and paid by other banks and by authorized foreign banks under section 23 of the Office of the Superintendent of Finan- cial Institutions Act, and interest in respect of the ex- penses at any rate that is specified by the Superinten- dent, constitute a claim of His Majesty in right of Canada against the assets of the bank that ranks after all other claims but prior to any claim in respect of the shares or membership shares of the bank. 568 The Act is amended by adding the following after section 664: Policies and procedures — integrity or security 664.1 A bank holding company shall establish and ad- here to policies and procedures to protect itself against threats to its integrity or security, including foreign inter- ference. 569 Subsection 954(1) of the Act is amended by striking out “or” at the end of paragraph (a), by adding “or” at the end of paragraph (b) and by adding the following after paragraph (b): (c) determine whether the bank holding company has adequate policies and procedures to protect itself against threats to its integrity or security. 570 Subsection 957(1) of the Act is replaced by the following: Examination of bank holding companies 957 (1) The Superintendent, from time to time, shall make or cause to be made any examination and inquiry into the business and affairs of each bank holding com- pany that the Superintendent considers to be necessary or expedient to determine whether the bank holding company is complying with the provisions of this Act and to ascertain the financial condition of the bank holding company or to determine whether the bank holding com- pany has adequate policies and procedures to protect it- self against threats to its integrity or security. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Bank Act Sections 567-570 Page 372 571 Section 959 of the Act is replaced by the fol- lowing: Prudential agreement 959 The Superintendent may enter into an agreement, called a “prudential agreement”, with a bank holding company for the purposes of implementing any measure designed to protect the interests of depositors, policy- holders and creditors of any federal financial institution affiliated with it or establishing adequate policies and procedures to protect the bank holding company against threats to its integrity or security. 572 Subsections 960(2) and (3) of the Act are re- placed by the following: Directions — policies and procedures (1.1) If, in the opinion of the Superintendent, a bank holding company does not have adequate policies and procedures to protect itself against threats to its integrity or security, the Superintendent may direct the bank hold- ing company to take any measures that in the opinion of the Superintendent are necessary to remedy the situa- tion. Opportunity for representations (2) Subject to subsection (4), no direction shall be issued under subsection (1) or (1.1) unless the bank holding company is provided with a reasonable opportunity to make representations in respect of the matter. Temporary direction (3) If, in the opinion of the Superintendent, the length of time required for representations to be made might be prejudicial to the public interest, the Superintendent may make a temporary direction with respect to the matters referred to in paragraphs (1)(a) to (d) or subsection (1.1) having effect for a period of not more than 15 days. 573 Subsection 961(1) of the French version of the Act is replaced by the following: Exécution judiciaire 961 (1) En cas de manquement soit à un accord pruden- tiel conclu en vertu de l’article 959, soit à une décision prise en vertu de l’article 960, soit à une disposition de la présente loi — notamment une obligation — , le surinten- dant peut, en plus de toute autre mesure qu’il est déjà ha- bilité à prendre sous le régime de celle-ci, demander à un tribunal de rendre une ordonnance obligeant la société de portefeuille bancaire en faute à mettre fin ou à remé- dier au manquement, ou toute autre ordonnance qu’il juge indiquée en l’espèce. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Bank Act Sections 571-573 Page 373 574 Subsection 973.02(1) of the Act is replaced by the following: Minister — terms, conditions and undertakings 973.02 (1) In addition to any other action that may be taken under this Act, the Minister may, in granting an approval, impose any terms and conditions or require any undertaking that the Minister considers appropriate, including any terms, conditions or undertakings speci- fied by the Superintendent to maintain or improve the safety and soundness of any financial institution regulat- ed under an Act of Parliament to which the approval re- lates or that might be affected by it or to ensure that such a financial institution has adequate policies and proce- dures to protect itself against threats to its integrity or se- curity. 575 Subsection 973.03(3) of the Act is replaced by the following: Representations (3) Before taking any action under subsection (1) or (2), the Minister or the Superintendent, as the case may be, shall give the person concerned a reasonable opportunity to make representations. Temporary amendment or suspension (4) If, in the Minister’s opinion, the length of time re- quired for representations to be made under subsection (3) might be prejudicial to the public interest, the Minis- ter may temporarily suspend or amend any approval granted by the Minister. Cessation of effect (5) A temporary suspension or amendment of an ap- proval ceases to have effect on the earlier of (a) the expiry of 30 days after the day on which it takes effect or of a shorter period that is specified by the Minister, and (b) if the approval is revoked, suspended or amended under subsection (1), the day on which the revocation, suspension or amendment takes effect. 576 The Act is amended by adding the following after section 973.03: Confidential undertaking 973.031 (1) If, in the Minister’s opinion, the disclosure of information about an undertaking required under sub- section 973.02(1) or 973.03(1) or (4), or information that could reveal the existence of the undertaking, could pose a threat to the integrity or security of the financial 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Bank Act Sections 574-576 Page 374 institution to which the undertaking relates or could be injurious to national security, the Minister may specify that the information is confidential and shall be treated accordingly. Prohibition (2) Despite anything in this Act but subject to subsection (3), it is prohibited to disclose any confidential informa- tion referred to in subsection (1) except in accordance with any terms or conditions that the Minister may speci- fy in the undertaking. Notice — Committee and Review Agency (3) If the Minister specifies under subsection (1) that in- formation referred to in that subsection is confidential for reasons related to national security, the Minister shall, within 30 days after the day on which the undertak- ing in question is required, notify (a) the Committee, as defined in section 2 of the Na- tional Security and Intelligence Committee of Parlia- mentarians Act; and (b) the Review Agency, as defined in section 2 of the National Security and Intelligence Review Agency Act. 577 Subsection 977(1) of the Act is replaced by the following: Appeal to Federal Court 977 (1) An appeal lies to the Federal Court from any di- rection of the Minister made under subsection 401.2(7), 402(1), 402.2(1), 913(7) or 915(1). 1991, c. 47 Insurance Companies Act 578 The Insurance Companies Act is amended by adding the following after section 15: Policies and procedures — integrity or security 15.1 A company or society shall establish and adhere to policies and procedures to protect itself against threats to its integrity or security, including foreign interference. 579 Paragraphs 168(1)(e) and (f) of the Act are replaced by the following: (e) a person who is prohibited by subsection 164.08(8) or section 418 or 430 from exercising voting rights at- tached to shares of the company or whose voting 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Bank Act Sections 576-579 Page 375 rights attached to the shares are suspended under sec- tion 432.1 or subsection 1016.3(4); (f) a person who is an officer, director or full time em- ployee of an entity that is prohibited by subsection 164.08(8) or section 418 or 430 from exercising voting rights attached to shares of the company or whose vot- ing rights attached to the shares are suspended under section 432.1 or subsection 1016.3(4); 580 The Act is amended by adding the following after section 432: Disposition — threat to integrity or security 432.1 (1) If the Minister is of the opinion that a per- son’s holding or beneficial ownership of shares of a com- pany poses a threat to the integrity or security of the company or the financial system in Canada or a threat to national security, the Minister may, by order, direct that person and any person controlled by that person to dis- pose of any number of shares of the company held or beneficially owned by any of the persons that the Minis- ter specifies in the order, within the time specified in the order and in the proportion, if any, as between the per- son and the persons controlled by the person that is spec- ified in the order. Suspension of rights (2) A direction made under subsection (1) may also sus- pend any of the rights under Part VI attached to the shares referred to in that subsection until the shares are disposed of in accordance with the direction. Representations (3) No direction shall be made under subsection (1) un- less the Minister has provided each person to whom the direction relates and the company concerned with a rea- sonable opportunity to make representations. Temporary direction (4) If, in the Minister’s opinion, the length of time re- quired for representations to be made under subsection (3) might be prejudicial to the public interest, the Minis- ter may make a temporary direction to suspend any of the rights under Part VI attached to any of the shares re- ferred to in subsection (1). Cessation of effect (5) A temporary direction ceases to have effect on the earlier of 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Insurance Companies Act Sections 579-580 Page 376 (a) the expiry of 30 days after the day on which it takes effect or of a shorter period that is specified in the temporary direction, and (b) if a direction is made under subsection (1) in re- spect of the shares, the day on which that direction takes effect. Appeal (6) Any person with respect to whom a direction has been made under subsection (1) may, within 30 days af- ter the day on which the direction was made, appeal the matter in accordance with section 1020. Notice — Committee and Review Agency (7) If a direction has been made under subsection (1) or (4) for reasons related to national security, the Minister shall, within 30 days after the day on which the direction was made, notify (a) the Committee, as defined in section 2 of the Na- tional Security and Intelligence Committee of Parlia- mentarians Act; and (b) the Review Agency, as defined in section 2 of the National Security and Intelligence Review Agency Act. 581 Subsection 433(1) of the Act is replaced by the following: Application to court 433 (1) If a person fails to comply with a direction made under subsection 428(7), 432(1) or 432.1(1), an applica- tion on behalf of the Minister may be made to a court for an order to enforce the direction. 582 The Act is amended by adding the following after section 574: Policies and procedures — integrity or security 574.1 A foreign company shall establish and adhere to policies and procedures to protect itself against threats to its integrity or security in relation to its business in Canada. 583 The Act is amended by adding the following after section 657: Policies and procedures — integrity or security 657.1 A provincial company shall establish and adhere to policies and procedures to protect itself against threats to its integrity or security, including foreign interference. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Insurance Companies Act Sections 580-583 Page 377 584 Subsection 671(1) of the Act is replaced by the following: Production of information and documents 671 (1) The Superintendent may, by order, direct a per- son who controls a company or any entity that is affiliat- ed with a company to provide the Superintendent with any information or documents that may be specified in the order if the Superintendent believes that the produc- tion of the information or documents is necessary in or- der to be satisfied that (a) the provisions of this Act are being duly observed and that the company is in a sound financial condi- tion; or (b) the company has adequate policies and procedures to protect itself against threats to its integrity or secu- rity. 585 (1) Subsection 674(1) of the Act is replaced by the following: Examination of companies, etc. 674 (1) The Superintendent, from time to time, but at least once in each calendar year, shall make or cause to be made any examination and inquiry into the business and affairs of each company, society, foreign company and provincial company that the Superintendent consid- ers to be necessary or expedient to determine whether the company, society, foreign company or provincial company is complying with the provisions of this Act, whether the company, society or provincial company or the insurance business in Canada of the foreign company is in a sound financial condition and whether the compa- ny, society or provincial company has adequate policies and procedures to protect itself against threats to its in- tegrity or security or the foreign company has adequate policies and procedures to protect itself against threats to its integrity or security in relation to its business in Canada. After the conclusion of each examination and in- quiry, the Superintendent shall report on it to the Minis- ter. (2) Section 674 of the Act is amended by adding the following after subsection (1): Integrity or security (1.1) The Superintendent, from time to time, shall make or cause to be made any examination and inquiry into the business and affairs of any company, society, foreign company and provincial company that the Superinten- dent considers to be necessary or expedient to determine whether the company, society or provincial company has adequate policies and procedures to protect itself against 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Insurance Companies Act Sections 584-585 Page 378 threats to its integrity or security or the foreign company has adequate policies and procedures to protect itself against threats to its integrity or security in relation to its business in Canada. After the conclusion of each exami- nation and inquiry, the Superintendent shall report on it to the Minister. (3) Subsection 674(1.1) of the Act is repealed. 586 Section 675.1 of the Act is replaced by the fol- lowing: Prudential agreement 675.1 The Superintendent may enter into an agreement, called a “prudential agreement”, with (a) a company, society or provincial company for the purposes of implementing any measure designed to maintain or improve its safety and soundness or es- tablishing adequate policies and procedures to protect it against threats to its integrity or security; or (b) a foreign company for the purposes of implement- ing any measure designed to protect the interests of its policyholders and creditors in relation to its insurance business in Canada or establishing adequate policies and procedures to protect it against threats to its in- tegrity or security in relation to its business in Canada. 587 Subsections 676(2) and (3) of the Act are re- placed by the following: Directions — policies and procedures (1.1) If, in the opinion of the Superintendent, a compa- ny, society, or provincial company does not have ade- quate policies and procedures to protect itself against threats to its integrity or security, or a foreign company does not have adequate policies and procedures to pro- tect itself against threats to its integrity or security in re- lation to its business in Canada, the Superintendent may direct the company, society, foreign company or provin- cial company to take any measures that in the opinion of the Superintendent are necessary to remedy the situa- tion. Opportunity for representations (2) Subject to subsection (3), no direction shall be issued to a company, society, foreign company, provincial com- pany or person under subsection (1) or (1.1) unless the company, society, foreign company, provincial company or person is provided with a reasonable opportunity to make representations in respect of the matter. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Insurance Companies Act Sections 585-587 Page 379 Temporary direction (3) If, in the opinion of the Superintendent, the length of time required for representations to be made under sub- section (2) might be prejudicial to the public interest, the Superintendent may make a temporary direction with re- spect to the matters referred to in paragraphs (1)(a) and (b) or subsection (1.1) having effect for a period of not more than 15 days. 588 Paragraph 678(1)(a) of the Act is replaced by the following: (a) is contravening or has failed to comply with a pru- dential agreement entered into under section 675.1 or a direction of the Superintendent issued to the compa- ny, society, foreign company, provincial company or person under subsection 676(1), (1.1.) or (3), 589 Subsection 678.5(1) of the Act is replaced by the following: Direction to transfer policies or to reinsure risks — society 678.5 (1) If the circumstances described in any of para- graphs 679(1.1)(a) to (e) or (f.1) to (i) exist in respect of a society, the Superintendent may, by order, subject to any terms and conditions the Superintendent may specify, di- rect it to transfer all or any portion of its policies to, or cause itself to be reinsured, against all or any portion of the risks undertaken under its policies, by any company, society, foreign company or body corporate incorporated or formed by or under the laws of a province that is au- thorized to transact the classes of insurance to be so transferred or reinsured. 590 Subsection 678.6(1) of the Act is replaced by the following: Direction to transfer policies or to reinsure risks — foreign fraternal benefit society 678.6 (1) If the circumstances described in any of para- graphs 679(1.2)(a) to (d) or (f) to (h) exist in respect of a foreign fraternal benefit society, the Superintendent may, by order, subject to any terms and conditions the Super- intendent may specify, direct it to transfer all or any por- tion of its policies in respect of its insurance business in Canada to, or cause itself to be reinsured, against all or any portion of the risks undertaken under those policies, 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Insurance Companies Act Sections 587-590 Page 380 by any company, society, foreign company or body cor- porate incorporated or formed by or under the laws of a province that is authorized to transact the classes of in- surance to be so transferred or reinsured. 591 (1) Paragraph 679(1)(b) of the French version of the Act is replaced by the following: b) sauf avis contraire du ministre fondé sur l’intérêt public, prendre le contrôle pour plus de seize jours de l’actif de la société, la société de secours ou la société provinciale et des éléments d’actif qu’elle administre ou, dans le cas d’une société étrangère, de son actif au Canada ainsi que de ses autres éléments d’actif se trouvant au Canada sous le contrôle de son agent prin- cipal, y compris les sommes reçues ou à recevoir pour ses activités d’assurances au Canada, continuer d’en assumer le contrôle au-delà de ce terme ou prendre le contrôle de la société, de la société de secours ou de la société provinciale. (2) Subsection 679(1.1) of the Act is amended by striking out “or” at the end of paragraph (f) and by adding the following after that paragraph: (f.1) in the case of a company, in the opinion of the Superintendent, the company’s policyholders or credi- tors may be detrimentally affected because all of the common shares of the company must be disposed of under a direction made by the Minister or because there is a prohibition under this Act in respect of the exercise of the right to vote attached to all of the com- mon shares of the company; (3) Subsection 679(1.1) of the Act is amended by adding the following after paragraph (g): (h) in the opinion of the Superintendent, the contin- ued operation of the company, society or provincial company by its directors or by the officers responsible for its management would be materially prejudicial to its integrity or security; or (i) in the opinion of the Superintendent, the continued operation of the company, society or provincial com- pany by its directors or by the officers responsible for its management would pose a risk to national security. (4) Subsection 679(1.2) of the Act is amended by striking out “or” at the end of paragraph (e) and by adding the following after paragraph (f): (g) in the opinion of the Superintendent, the contin- ued operation of the foreign company in Canada 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Insurance Companies Act Sections 590-591 Page 381 would be materially prejudicial to the integrity or se- curity of its business in Canada; or (h) in the opinion of the Superintendent, the contin- ued operation of the foreign company in Canada would pose a risk to national security. (5) Section 679 of the Act is amended by adding the following after subsection (1.2): Minister’s powers (1.21) Subject to this Act, the Minister may, for reasons related to national security, direct the Superintendent to (a) take control, for a period not exceeding 16 days, of the assets of the company, society or provincial com- pany and the assets under its administration or, in the case of a foreign company, of its assets in Canada to- gether with its other assets held in Canada under the control of its chief agent, including all amounts re- ceived or receivable in respect of its insurance busi- ness in Canada; (b) take control, for a period exceeding 16 days, of the assets of the company, society or provincial company and the assets under its administration or, in the case of a foreign company, of its assets in Canada together with its other assets held in Canada under the control of its chief agent, including all amounts received or re- ceivable in respect of its insurance business in Canada; (c) if control of assets has been taken under para- graph (a), continue the control beyond the 16 days re- ferred to in that paragraph; or (d) take control of the company, society or provincial company. (6) Subsection 679(2) of the Act is replaced by the following: Notice — up to 16 days (1.4) If the Superintendent takes control of the assets of a company, society, provincial company or foreign com- pany under paragraph (1.21)(a), the Superintendant shall notify the company, society, provincial company or for- eign company that control has been taken at the direction of the Minister. Notice — more than 16 days (1.5) If the Minister is considering whether to exercise the powers under any of paragraphs (1.21)(b) to (d), the Superintendent shall notify the company, society, provin- cial company or foreign company of the action that is 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Insurance Companies Act Section 591 Page 382 being considered and of its right to make written repre- sentations to the Minister within the time specified in the notice, not exceeding 10 days after it receives the notice. Notice — Committee and Review Agency (1.6) Within 30 days after exercising any of the powers under subsection (1.21), the Minister shall notify (a) the Committee, as defined in section 2 of the Na- tional Security and Intelligence Committee of Parlia- mentarians Act; and (b) the Review Agency, as defined in section 2 of the National Security and Intelligence Review Agency Act. Objectives of Superintendent (2) If the Superintendent has control under subsection (1) or (1.21) of the assets of a company, society, provin- cial company or foreign company referred to in that sub- section, the Superintendent may do all things necessary or expedient to protect the rights and interests of the pol- icyholders and creditors of the company, society or provincial company or the policyholders and creditors in respect of the foreign company’s insurance business in Canada. (7) The portion of subsection 679(3) of the Act be- fore paragraph (a) is replaced by the following: Powers of Superintendent (3) If the Superintendent has control under subsection (1) or (1.21) of the assets of a company, society, provin- cial company or foreign company referred to in that sub- section, 592 (1) Subsection 683(1) of the Act is replaced by the following: Powers of directors and officers suspended 683 (1) If the Superintendent takes control of a compa- ny, society or provincial company under subparagraph 679(1)(b)(iii) or paragraph 679(1.21)(d), the powers, du- ties, functions, rights and privileges of the directors of the company, society or provincial company and of the officers of the company, society or provincial company responsible for its management are suspended. (2) The portion of subsection 683(2) of the Act be- fore paragraph (a) is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Insurance Companies Act Sections 591-592 Page 383 Superintendent to manage company (2) If the Superintendent takes control of a company, so- ciety or provincial company under subparagraph 679(1)(b)(iii) or paragraph 679(1.21)(d), the Superinten- dent shall manage the business and affairs of the compa- ny, society or provincial company and in so doing the Su- perintendent (3) Subsection 683(3) of the Act is replaced by the following: Persons to assist (3) If the Superintendent takes control of a company, so- ciety or provincial company under subparagraph 679(1)(b)(iii) or paragraph (1.21)(d), or of the assets of a foreign company under subparagraph 679(1)(b)(i) or (ii) or paragraph 679(1.21)(b) or (c), the Superintendent may appoint one or more persons to assist in the management of the company, society or provincial company or of the insurance business in Canada of the foreign company. 593 Section 684 of the Act is renumbered as sub- section 684(1) and is amended by adding the fol- lowing: Expiration of control — Minister’s direction (2) Control by the Superintendent under subsection 679(1.21) of a company, society or provincial company or of the assets of a company, society or provincial company or of the assets in Canada of a foreign company together with its other assets held in Canada under the control of its chief agent including all amounts received or receiv- able in respect of its insurance business in Canada ex- pires on the day on which a notice by the Superintendent is sent to the directors and officers who conducted the business and affairs of the company, society or provincial company, or the chief agent in Canada of the foreign company, stating that the Minister is of the opinion, on the recommendation of the Superintendant, that correc- tive measures have been taken in response to the reasons related to national security and that the company, society or provincial company or the foreign company, as the case may be, can resume control of its business and af- fairs, assets or its insurance business in Canada, as the case may be. 594 Paragraphs 684.1(a) to (c) of the Act are re- placed by the following: (a) the company, society or provincial company, if the assets of the company, society or provincial company are under the control of the Superintendent under subparagraph 679(1)(b)(i) or (ii) or paragraph 679(1.21)(b) or (c); 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Insurance Companies Act Sections 592-594 Page 384 (b) the insurance business in Canada of the foreign company, if the assets in Canada of the foreign compa- ny together with its other assets referred to in sub- paragraph 679(1)(b)(i) or (ii) or paragraph 679(1.21)(b) or (c) are under the control of the Super- intendent under those subparagraphs or paragraphs; or (c) the company, society or provincial company, if it is under the control of the Superintendent under sub- paragraph 679(1)(b)(iii) or paragraph 679(1.21)(d). 595 The portion of section 685 of the English ver- sion of the Act before paragraph (a) is replaced by the following: Requirement to relinquish control 685 If no action has been taken by the Superintendent under section 684.1 and, after 30 days following the tak- ing of control by the Superintendent under subsection 679(1) or (1.21) of a company, society or provincial com- pany or of the assets of a company, society or provincial company or of the assets in Canada of a foreign company together with its other assets held in Canada under the control of its chief agent including all amounts received or receivable in respect of its insurance business in Canada, the Superintendent receives from the board of directors of the company, society or provincial company or, in case of a foreign company, its chief agent, a notice in writing requesting the Superintendent to relinquish control, the Superintendent shall, not later than 12 days after receipt of the notice, 596 Subparagraph 686(1)(a)(ii) of the Act is re- placed by the following: (ii) exercising control of the assets of a foreign company under subparagraph 679(1)(b)(i) or (ii) or paragraph 679(1.21)(b) or (c), 597 Subsections 691(1) and (2) of the English ver- sion of the Act are replaced by the following: Expenses payable by company, etc. 691 (1) If the Superintendent has taken control of a company, society or provincial company under subpara- graph 679(1)(b)(iii) or paragraph 679(1.21)(d) and the 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Insurance Companies Act Sections 594-597 Page 385 control expires or is relinquished under section 684 or paragraph 685(a), the Superintendent may direct that the company, society or provincial company be liable for re- payment of all or part of the expenses resulting from the taking of control of the company, society or provincial company and assessed against and paid by other compa- nies, societies, provincial companies and foreign compa- nies under section 687, together with any interest in re- spect of the expenses at any rate that is specified by the Superintendent. Expenses payable by foreign company (2) If the Superintendent has taken control of the assets of a foreign company under subparagraph 679(1)(b)(i) or (ii) or paragraph 679(1.21)(b) or (c) and the control ex- pires or is relinquished under section 684 or paragraph 685(a), the Superintendent may direct that the foreign company be liable for repayment of all or part of the ex- penses resulting from the taking of control of the assets of the foreign company and assessed against and paid by other companies, societies, foreign companies and provincial companies under section 687, together with any interest in respect of the expenses at any rate that is specified by the Superintendent. 598 The Act is amended by adding the following after section 701: Policies and procedures — integrity or security 701.1 An insurance holding company shall establish and adhere to policies and procedures to protect itself against threats to its integrity or security, including for- eign interference. 599 Subsection 997(1) of the Act is amended by striking out “or” at the end of paragraph (a), by adding “or” at the end of paragraph (b) and by adding the following after paragraph (b): (c) determine whether the insurance holding compa- ny has adequate policies and procedures to protect it- self against threats to its integrity or security. 600 Subsection 1000(1) of the Act is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Insurance Companies Act Sections 597-600 Page 386 Examination of insurance holding companies 1000 (1) The Superintendent, from time to time, shall make or cause to be made any examination and inquiry into the business and affairs of any insurance holding company that the Superintendent considers to be neces- sary or expedient to determine whether the insurance holding company is complying with the provisions of this Act and to ascertain the financial condition of the insur- ance holding company or to determine whether the in- surance holding company has adequate policies and pro- cedures to protect itself against threats to its integrity or security. 601 Section 1002 of the Act is replaced by the fol- lowing: Prudential agreement 1002 The Superintendent may enter into an agreement, called a “prudential agreement”, with an insurance hold- ing company for the purposes of implementing any mea- sure designed to protect the interests of depositors, poli- cyholders and creditors of any federal financial institu- tion affiliated with it or establishing adequate policies and procedures to protect the insurance holding compa- ny against threats to its integrity or security. 602 Subsections 1003(2) and (3) of the Act are re- placed by the following: Directions — policies and procedures (1.1) If, in the opinion of the Superintendent, an insur- ance holding company does not have adequate policies and procedures to protect itself against threats to its in- tegrity or security, the Superintendent may direct the in- surance holding company to take any measures that in the opinion of the Superintendent are necessary to reme- dy the situation. Opportunity for representations (2) Subject to subsection (3), no direction shall be issued under subsection (1) or (1.1) unless the insurance hold- ing company is provided with a reasonable opportunity to make representations in respect of the matter. Temporary direction (3) If, in the opinion of the Superintendent, the length of time required for representations to be made might be prejudicial to the public interest, the Superintendent may make a temporary direction with respect to the matters referred to in paragraphs (1)(a) to (d) or subsection (1.1) having effect for a period of not more than 15 days. 603 Subsection 1004(1) of the Act is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Insurance Companies Act Sections 600-603 Page 387 Court enforcement 1004 (1) If an insurance holding company is contraven- ing or has failed to comply with a prudential agreement entered into under section 1002 or a direction of the Su- perintendent issued under subsection 1003(1), (1.1) or (3), or is contravening this Act, or has omitted to do any thing under this Act that it is required to do, the Superin- tendent may, in addition to any other action that may be taken under this Act, apply to a court for an order requir- ing the insurance holding company to comply with the direction, cease the contravention or do any thing that is required to be done, and on such application the court may so order and make any other order it thinks fit. 604 Subsection 1016.2(1) of the Act is replaced by the following: Minister — terms, conditions and undertakings 1016.2 (1) In addition to any other action that may be taken under this Act, the Minister may, in granting an approval, impose any terms and conditions or require any undertaking that the Minister considers appropriate, including any terms, conditions or undertakings speci- fied by the Superintendent to maintain or improve the safety and soundness of any financial institution regulat- ed under an Act of Parliament to which the approval re- lates or that might be affected by it or to ensure that such a financial institution has adequate policies and proce- dures to protect itself against threats to its integrity or se- curity. 605 Subsection 1016.3(3) of the Act is replaced by the following: Representations (3) Before taking any action under subsection (1) or (2), the Minister or the Superintendent, as the case may be, shall give the person concerned a reasonable opportunity to make representations. Temporary amendment or suspension (4) If, in the Minister’s opinion, the length of time re- quired for representations to be made under subsection (3) might be prejudicial to the public interest, the Minis- ter may temporarily suspend or amend any approval granted by the Minister. Cessation of effect (5) A temporary suspension or amendment of an ap- proval ceases to have effect on the earlier of (a) the expiry of 30 days after the day on which it takes effect or of a shorter period that is specified by the Minister, and 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Insurance Companies Act Sections 603-605 Page 388 (b) if the approval is revoked, suspended or amended under subsection (1), the day on which the revocation, suspension or amendment takes effect. 606 The Act is amended by adding the following after section 1016.3: Confidential undertaking 1016.31 (1) If, in the Minister’s opinion, the disclosure of information about an undertaking required under sub- section 1016.2(1) or 1016.3(1) or (4), or information that could reveal the existence of the undertaking, could pose a threat to the integrity or security of the financial insti- tution to which the undertaking relates or could be inju- rious to national security, the Minister may specify that the information is confidential and shall be treated ac- cordingly. Prohibition (2) Despite anything in this Act but subject to subsection (3), it is prohibited to disclose any confidential informa- tion referred to in subsection (1) except in accordance with any terms or conditions that the Minister may speci- fy in the undertaking. Notice — Committee and Review Agency (3) If the Minister specifies under subsection (1) that in- formation referred to in that subsection is confidential for reasons related to national security, the Minister shall, within 30 days after the day on which the undertak- ing in question is required, notify (a) the Committee, as defined in section 2 of the Na- tional Security and Intelligence Committee of Parlia- mentarians Act; and (b) the Review Agency, as defined in section 2 of the National Security and Intelligence Review Agency Act. 607 Subsection 1020(1) of the Act is replaced by the following: Appeal to Federal Court 1020 (1) An appeal lies to the Federal Court from any direction of the Minister made under subsection 428(7), 432(1), 432.1(1), 954(7) or 956(1). 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Insurance Companies Act Sections 605-607 Page 389 R.S., c. W-11; 1996, c. 6, s. 134 Consequential Amendment to the Winding-up and Restructuring Act 608 (1) The portion of section 10.1 of the Wind- ing-up and Restructuring Act before paragraph (e) is replaced by the following: Other winding-up circumstances 10.1 If the Superintendent has taken control of a finan- cial institution or of the assets of a financial institution under any of paragraphs 648(1)(b) or (1.11)(b) to (d) of the Bank Act, paragraph 442(1)(b) of the Cooperative Credit Associations Act, any of paragraphs 679(1)(b) or (1.21)(b) to (d) of the Insurance Companies Act or any of paragraphs 510(1)(b) or (1.11)(b) to (d) of the Trust and Loan Companies Act or, in the case of an authorized for- eign bank, has taken control of its assets under para- graph 619(1)(b) or (2.1)(b) or (c) of the Bank Act or, in the case of a foreign insurance company, has taken con- trol of its assets under subparagraph 679(1)(b)(i) or (ii) or paragraph 679(1.21)(b) or (c) of the Insurance Compa- nies Act, a court may make a winding-up order in respect of the financial institution, authorized foreign bank or in- surance business in Canada of the foreign insurance company if the court is of the opinion that for any reason it is just and equitable that the financial institution, au- thorized foreign bank or insurance business in Canada of the foreign insurance company should be wound up or if, in the case of (a) a bank to which the Bank Act applies, the control was taken on a ground referred to in paragraph 648(1.1)(a), (c), (e) or (f) of that Act or for reasons re- lated to national security; (a.1) an authorized foreign bank, control of its assets was taken on a ground referred to in paragraph 619(2)(a), (b), (d) or (f) of the Bank Act or for reasons related to national security; (b) a company to which the Trust and Loan Compa- nies Act applies, the control was taken on a ground re- ferred to in paragraph 510(1.1)(a), (c), (e) or (f) of that Act or for reasons related to national security; (c) an insurance company to which the Insurance Companies Act applies, other than a foreign insurance company, the control was taken on a ground referred to in paragraph 679(1.1)(a), (c), (e) or (f) of that Act or for reasons related to national security; (d) a foreign insurance company to which the Insur- ance Companies Act applies, the control of its assets 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Consequential Amendment to the Winding-up and Restructuring Act Section 608 Page 390 was taken on a ground referred to in paragraph 679(1.2)(a), (c) or (e) of that Act or for reasons related to national security; or (2) Paragraph 10.1(e) of the French version of the Act is replaced by the following: e) en raison de l’alinéa 442(1.1)a), c), e) ou f) de la Loi sur les associations coopératives de crédit, dans le cas d’une association assujettie au régime de cette loi. Coming into Force January 1, 2024 609 Section 518, subsections 523(1) and (3), sec- tions 539 and 543, subsections 544(1) and (3) and 556(1) and (3), sections 568, 578, 582 and 583, sub- sections 585(1) and (3) and section 598 come into force on January 1, 2024. DIVISION 34 R.S., c. C-46 Criminal Code Amendments to the Act 610 (1) The definition criminal rate in subsection 347(2) of the Criminal Code is replaced by the fol- lowing: criminal rate means an annual percentage rate of inter- est calculated in accordance with generally accepted ac- tuarial practices and principles that exceeds 35 per cent on the credit advanced; (taux criminel) (2) Subsection 347(4) of the Act is replaced by the following: Proof of annual percentage rate (4) In any proceedings under this section, a certificate of a Fellow of the Canadian Institute of Actuaries stating that they have calculated the annual percentage rate of interest on any credit advanced and setting out the calcu- lations and the information on which they are based is, in the absence of evidence to the contrary, proof of the an- nual percentage rate of interest without proof of the sig- nature or official character of the person appearing to have signed the certificate. 611 The Act is amended by adding the following after section 347: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 33 Legislation Related to Financial Institutions Consequential Amendment to the Winding-up and Restructuring Act Sections 608-611 Page 391 Agreement or arrangement 347.01 (1) Section 347 does not apply in respect of agreements or arrangements provided for by regulation. Regulations (2) The Governor in Council may, by regulation, on the recommendation of the Minister of Justice and after that Minister’s consultation with the Minister of Finance, pro- vide for the types of agreements or arrangements in re- spect of which section 347 does not apply or the criteria for determining the agreements or arrangements, or the types of agreements or arrangements, in respect of which that section does not apply. 612 (1) Subsection 347.1(2) of the Act is amended by adding the following after paragraph (a): (a.1) the total cost of borrowing under the agreement does not exceed the limit fixed by regulation; (2) Section 347.1 of the Act is amended by adding the following after subsection (2): Regulation — limit (2.1) For the purposes of paragraph (2)(a.1), the Gover- nor in Council may, by regulation, on the recommenda- tion of the Minister of Justice and after that Minister’s consultation with the Minister of Finance, fix the limit. Clarification (2.2) If section 347 does not apply to a person by reason of subsection (2) immediately before a regulation made under subsection (2.1) comes into force, that section con- tinues not to apply to the person if the total cost of bor- rowing under the agreement did not exceed the limit that applied immediately before the regulation came into force. Transitional Provisions Words and expressions 613 The words and expressions used in sections 614 and 615 have the same meaning as in sections 347 and 347.1 of the Criminal Code. Subsection 347(1) of Criminal Code 614 For the purposes of subsection 347(1) of the Criminal Code, the definition criminal rate in sub- section 347(2) of that Act, as it reads on the day on which subsection 610(1) comes into force, does not apply in respect of any receipt of a payment or partial payment of interest that, on or after 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 34 Criminal Code Amendments to the Act Sections 611-614 Page 392 that day, is interest at a criminal rate, if the pay- ment arises from an agreement or arrangement to receive interest that was entered into before that day and the interest that arises from that agreement or arrangement would not have been at a criminal rate, as defined in subsection 347(2) of the Criminal Code, as that subsection 347(2) read before that day. Paragraph 347.1(2)(a.1) of Criminal Code 615 Paragraph 347.1(2)(a.1) of the Criminal Code, as it reads on the day on which subsection 612(1) comes into force, does not apply to a person who (a) entered into a payday loan agreement to re- ceive interest before that day; or (b) on or after that day, receives any payment or partial payment of interest, if the payment arises from a payday loan agreement to re- ceive interest that was entered into before that day. Coming into Force Order in council 616 Sections 610 to 612 come into force on a day or days to be fixed by order of the Governor in Council. DIVISION 35 1996, c. 23 Employment Insurance Act 617 Subparagraph 12(2.3)(a)(i) of the Employ- ment Insurance Act is replaced by the following: (i) the date on which a benefit period for the claimant is established falls within the period be- ginning on September 26, 2021 and ending on Octo- ber 26, 2024, 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 34 Criminal Code Transitional Provisions Sections 614-617 Page 393 DIVISION 36 1999, c. 33 Canadian Environmental Protection Act, 1999 Amendments to the Act 618 (1) Subsections 272.2(3) and (4) of the Cana- dian Environmental Protection Act, 1999 are re- placed by the following: Compliance units (3) If a person is convicted of an offence under subsec- tion (1) by reason of having failed to comply with a provi- sion that requires the remission or the cancellation of compliance units described in regulations made under section 326, the court shall, in addition to any other pun- ishment that may be imposed under that subsection, make an order requiring the person to remit or cancel compliance units of the type and number determined in accordance with regulations made under subsection (4) or, if there are no regulations made under subsection (4), in accordance with subsection (5). In the case of an order to remit, the court shall specify in the order the name of the person or entity to whom the compliance units are to be remitted. Regulations (4) The Governor in Council may make regulations pre- scribing the types of compliance units described in regu- lations made under section 326 that a person may be re- quired to remit or cancel in an order made under subsec- tion (3) and the manner of determining the number of those compliance units that the person may be required to remit or cancel. (2) Subsection 272.2(5) of the English version of the Act is replaced by the following: Absence of regulations (5) If there are no regulations made under subsection (4), the court shall require the person to remit or cancel compliance units of a type and in the number that, in the court’s opinion, the person failed to remit or cancel. 619 Paragraph 322(b) of the Act is replaced by the following: (b) compliance units. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 36 Canadian Environmental Protection Act, 1999 Sections 618-619 Page 394 620 (1) The portion of section 326 of the Act be- fore paragraph (a) is replaced by the following: Regulations for compliance units systems 326 The Governor in Council may, in the exercise of a regulation-making power under section 93, 118, 140, 167, 177 or 209, make regulations respecting systems relating to compliance units, including regulations providing for, or imposing requirements respecting, (2) Paragraph 326(c) of the Act is replaced by the following: (c) the description and nature of a compliance unit, including allowances, credits or coupons; (3) Paragraph 326(d) of the French version of the Act is replaced by the following: d) à des fins de comparaison et de contrôle, le seuil et le plafond du mécanisme et la façon de les établir; (4) Paragraph 326(e) of the Act is replaced by the following: (e) the conditions related to the creation, distribution, trade, sale, use, variation or cancellation of a compli- ance unit; (5) Paragraph 326(g) of the French version of the Act is replaced by the following: g) les conditions d’adhésion et de participation au mécanisme, et notamment les restrictions d’environ- nement ou de temps; 621 The portion of section 327 of the Act before paragraph (a) is replaced by the following: Ministerial orders 327 Despite any regulation made under section 326, the Minister may issue an order setting conditions in respect of the trading or suspend or cancel trading of compliance units or invalidate any trade of compliance units if the Ministers are of the opinion that the trade or use of a compliance unit 622 The Act is amended by adding the following after section 327: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 36 Canadian Environmental Protection Act, 1999 Amendments to the Act Sections 619-622 Page 395 Environmental Economic Instruments Fund 327.1 (1) There is established an account in the ac- counts of Canada to be called the Environmental Eco- nomic Instruments Fund, consisting of a sub-account for each funding program that meets the following condi- tions: (a) its purpose is provided for in a regulation made under section 326 and any of sections 93, 118, 140, 167, 177 and 209; and (b) it is under the responsibility of the Minister. Amounts paid into C.R.F. (2) The amounts received by His Majesty in right of Canada as contributions to a funding program referred to in subsection (1) are to be paid into the Consolidated Revenue Fund and credited to the sub-account for that program. Interest (3) The Minister of Finance shall cause to be credited to each sub-account an amount representing interest, calcu- lated in the manner and at the rate determined by the Governor in Council on the recommendation of that Min- ister, on the amount standing to the credit of that sub-ac- count. Amounts paid out of C.R.F. (4) On the Minister’s request, one or more amounts not exceeding in total the amount standing in the sub-ac- count for a funding program referred to in subsection (1), including interest, may be paid out of the Consolidated Revenue Fund for the purpose for which that funding program was established. The amount of all such pay- ments is to be charged to that sub-account. Administration of Fund (5) The Minister is responsible for the administration of the Environmental Economic Instruments Fund. Use of amounts (6) Amounts credited to a sub-account for a funding pro- gram referred to in subsection (1) may be used for the administration of that sub-account. Designation (7) The Minister may, by order, designate any person or class of persons to exercise the powers and perform the duties and functions set out in subsections (4) and (5). 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 36 Canadian Environmental Protection Act, 1999 Amendments to the Act Section 622 Page 396 2005, c. 30, s. 87 Consequential Amendments to the Canada Emission Reduction Incentives Agency Act 623 (1) The definition compliance unit in section 2 of the Canada Emission Reduction Incentives Agency Act is repealed. (2) The definitions eligible domestic credit and eli- gible Kyoto unit in section 2 of the Act are re- placed by the following: eligible domestic credit means a compliance unit that is of an eligible class designated by order made under paragraph 3(a). (crédit national admissible) eligible Kyoto unit means any compliance unit within the meaning of the Kyoto Protocol that is of an eligible class designated by order made under paragraph 3(b). (unité Kyoto admissible) 624 Paragraphs 3(a) and (b) of the Act are re- placed by the following: (a) as an eligible class for the purposes of the defini- tion eligible domestic credit in section 2, any class of compliance units issued under any program or mea- sure established under section 322 of the Canadian Environmental Protection Act, 1999; and (b) as an eligible class for the purposes of the defini- tion eligible Kyoto unit in section 2, any class of com- pliance unit within the meaning of the Kyoto Protocol. DIVISION 37 R.S., c. C-3 Canada Deposit Insurance Corporation Act Amendments to the Act 625 The Canada Deposit Insurance Corporation Act is amended by adding the following after sec- tion 10: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 36 Canadian Environmental Protection Act, 1999 Consequential Amendments to the Canada Emission Reduction Incentives Agency Act Sections 623-625 Page 397 For greater certainty — deposit insurance contracts 10.001 For greater certainty, the Corporation may ad- minister any contract related to deposit insurance that the Minister enters into with any entity under section 60.2 of the Financial Administration Act. 626 (1) Paragraph 12(c) of the Act is replaced by the following: (c) so much of any one deposit as exceeds the amount set out in subsection 12.01(1). (2) Paragraph 12(c) of the Act is replaced by the following: (c) so much of any one deposit as exceeds one hun- dred thousand dollars. 627 The Act is amended by adding the following after section 12: Amount 12.01 (1) The amount referred to in paragraph 12(c) is one hundred thousand dollars, unless the Minister, with the Governor in Council’s authorization, determines a greater amount, in which case the amount referred to in that paragraph is the amount that the Minister deter- mines. Stability or efficiency of financial system (2) The Minister may determine an amount under sub- section (1) only if, in the Minister’s opinion, it is neces- sary to promote the stability or maintain the efficiency of the financial system in Canada. Consultation (3) Before determining an amount under subsection (1), the Minister shall consult the Governor of the Bank of Canada, the Superintendent, the President and Chief Ex- ecutive Officer of the Corporation and the Commissioner of the Financial Consumer Agency of Canada. Publication in Canada Gazette (4) As soon as feasible after determining an amount un- der subsection (1), the Minister shall publish the amount in the Canada Gazette. Report (5) Every month during which the amount referred to in paragraph 12(c) is the amount that the Minister deter- mines, the Minister shall publish a report and cause it to be tabled in each House of Parliament. 628 Section 12.01 of the Act is repealed. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 37 Canada Deposit Insurance Corporation Act Amendments to the Act Sections 625-628 Page 398 Review and Report Review 629 After April 30, 2024, the Minister of Finance must undertake a review of section 12.01 of the Canada Deposit Insurance Corporation Act, as that section reads on April 30, 2024. The Minister must publish a report on the review. Coming into Force April 30, 2024 630 Subsection 626(2) and section 628 come into force on April 30, 2024. DIVISION 38 Employment Insurance Board of Appeal 2005, c. 34; 2013, c. 40, s. 205 Department of Employment and Social Development Act 631 Section 2 of the Department of Employment and Social Development Act is amended by adding the following in alphabetical order: Board of Appeal means the Employment Insurance Board of Appeal established under section 43.01. (Conseil d’appel) 632 The headings “Social Security Tribunal” and “Establishment and Administration” before sec- tion 44 of the Act are replaced by the following: Board of Appeal and Social Security Tribunal Board of Appeal Establishment and Administration 633 The Act is amended by adding the following before section 44: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 37 Canada Deposit Insurance Corporation Act Review and Report Sections 629-633 Page 399 Establishment of Board of Appeal 43.01 The Employment Insurance Board of Appeal is established. Appointment — Executive Head 43.02 (1) The Executive Head of the Board of Appeal is to be appointed by the Governor in Council, on the rec- ommendation of the Minister after consultation by the Minister with the Commission, to hold office during plea- sure on a full-time basis for a renewable term of not more than five years. Appointment — regional coordinators (2) On the recommendation of the Minister after consul- tation by the Minister with the Commission, the Gover- nor in Council may appoint not more than six regional coordinators to hold office during pleasure on a full-time or part-time basis for a renewable term of not more than five years that will ensure, to the extent possible, the end in any one year of the terms of office of not more than one half of the regional coordinators. Diversity (3) Recommendations under subsection (2) are to be made having regard to the importance of having regional coordinators who are representative of the diversity of Canadian society. Composition 43.03 (1) The Board of Appeal consists of the Executive Head, the regional coordinators and the following mem- bers: (a) members to be appointed by the Governor in Council, on the recommendation of the Minister after consultation by the Minister with the Commission, to hold office during pleasure on a part-time basis for a renewable term of not more than five years; (b) members to be appointed by the Commission to hold office during pleasure on a part-time basis for a renewable term of not more than five years, each of whom must be an employer, within the meaning of subsection 2(1) of the Employment Insurance Act, or, at the time of the appointment, a representative of such employers; and (c) members to be appointed by the Commission to hold office during pleasure on a part-time basis for a renewable term of not more than five years, each of whom must be an insured person, within the mean- ing of subsection 2(1) of the Employment Insurance Act, or, at the time of the appointment, a representa- tive of such insured persons. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 38 Employment Insurance Board of Appeal Department of Employment and Social Development Act Section 633 Page 400 Terms of members (2) Members are to be appointed for terms that will en- sure, to the extent possible, the end in any one year of the terms of office of not more than one half of the members appointed under each of paragraphs (1)(a) to (c). Equal number (3) To the extent possible, an equal number of members is to be appointed under each of paragraphs (1)(a) to (c). Regional representation and diversity (4) Recommendations under paragraph (1)(a) and ap- pointments under paragraphs (1)(b) and (c) are to be made having regard to the importance of regional repre- sentation in the membership of the Board of Appeal as well as the importance of having members who are repre- sentative of the diversity of Canadian society. Completion of ongoing matters (5) A person who ceases to be a member for any reason other than removal may, at the request of the Executive Head, within 12 weeks after ceasing to be a member, car- ry out and complete any duties and functions that they would otherwise have had in connection with any matter that came before the Board of Appeal while they were still a member and in respect of which there was any pro- ceeding in which they participated as a member. For that purpose, the person is deemed to be a member. Executive Head 43.04 (1) The Executive Head has supervision over and direction of the day-to-day work of the Board of Appeal. In particular, the Executive Head is responsible for the management of the regional coordinators and the mem- bers of the Board of Appeal, including providing them with training and guidance with respect to their duties and functions and evaluating their performance. Report on overall performance (2) The Executive Head is to report regularly to the Com- mission on the overall performance of the Board of Ap- peal. Regional coordinators (3) Regional coordinators assist the Executive Head and perform any duties and functions that the Executive Head may assign. Delegation — regional coordinators (4) The Executive Head may delegate to any regional co- ordinator any of the Executive Head’s powers, duties or functions, except the power to delegate under this 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 38 Employment Insurance Board of Appeal Department of Employment and Social Development Act Section 633 Page 401 subsection, the duty to report under subsection (2), the duty to select members under subsection 43.05(1) and the duty to select a regional coordinator under subsection 43.05(2). Members assigned to region (5) The Executive Head is to assign each member of the Board of Appeal to a particular region to hear appeals in that region, taking into account the member’s ordinary place of residence. However, a member may be selected to hear appeals in other regions for operational reasons. Absence — Executive Head (6) In the event of the absence or incapacity of the Exec- utive Head or a vacancy in that office, the Chairperson of the Commission may authorize a person to act as Execu- tive Head, on any terms and conditions that the Chair- person may specify, but no person so authorized has au- thority to act for a term of more than 90 days without the Governor in Council’s approval given on the recommen- dation of the Minister after consultation by the Minister with the Commission. Board of Appeal hearings — three-member panels 43.05 (1) An appeal to the Board of Appeal is to be heard before a panel of three members selected by the Executive Head. One member, who is to be the presiding member of the panel, is to be selected from among the members referred to in paragraph 43.03(1)(a), one mem- ber is to be selected from among the members referred to in paragraph 43.03(1)(b) and one member is to be select- ed from among the members referred to in paragraph 43.03(1)(c). Determination of regional coordinator (2) The Executive Head is to select a regional coordina- tor to (a) determine if an extension of time to bring an ap- peal to the Board of Appeal should be granted; (b) determine if an appeal before the Board of Appeal has been abandoned; or (c) hear an application to reopen an appeal that has been determined to be abandoned. Delegation — employees of Department (3) The Executive Head may delegate to any employees of the Department, referred to in section 43.08, the duty to select members under subsection (1) and the duty to select a regional coordinator under subsection (2). 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 38 Employment Insurance Board of Appeal Department of Employment and Social Development Act Section 633 Page 402 Remuneration 43.06 (1) The Executive Head, the regional coordina- tors and the members of the Board of Appeal are to be paid the remuneration fixed by the Governor in Council. Expenses — Executive Head (2) The Executive Head is entitled to be paid, in accor- dance with Treasury Board directives, reasonable travel and living expenses incurred by the Executive Head while absent from the Executive Head’s ordinary place of work in the course of performing the Executive Head’s duties and functions. Expenses — full-time regional coordinators (3) Each full-time regional coordinator is entitled to be paid, in accordance with Treasury Board directives, rea- sonable travel and living expenses incurred by them while absent from their ordinary place of work in the course of performing their duties and functions as a re- gional coordinator. Expenses — part-time regional coordinators and members (4) Each part-time regional coordinator and each mem- ber of the Board of Appeal is entitled to be paid, in accor- dance with Treasury Board directives, reasonable travel and living expenses incurred by them while absent from their ordinary place of residence in the course of per- forming their duties and functions as a regional coordi- nator or a member of the Board of Appeal, as the case may be. Public Service Superannuation Act 43.07 (1) The Executive Head and the full-time regional coordinators are deemed to be employed in the public service for the purposes of the Public Service Superannu- ation Act. Other benefits (2) The Executive Head, the regional coordinators and the members of the Board of Appeal are deemed to be employees for the purposes of the Government Employ- ees Compensation Act and to be employed in the federal public administration for the purposes of regulations made under section 9 of the Aeronautics Act. Employees, services and facilities 43.08 The Minister is responsible for providing the Board of Appeal with the employees of the Department, the support services and the facilities that are needed by the Board of Appeal to exercise its powers and perform its duties and functions. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 38 Employment Insurance Board of Appeal Department of Employment and Social Development Act Section 633 Page 403 Immunity 43.09 No civil proceedings lie against the Executive Head, any regional coordinator or any member of the Board of Appeal for anything done or said in good faith in the exercise or purported exercise of a power or in the performance or purported performance of a duty or func- tion of the Board of Appeal. Competence and compellability 43.1 The Executive Head, the regional coordinators and the members of the Board of Appeal are not competent or compellable to appear as a witness in any civil pro- ceedings in respect of any matter coming to their knowl- edge in the course of the exercise of a power or in the performance of a duty or function of the Board of Appeal. Social Security Tribunal Establishment and Administration 634 The Act is amended by adding the following after section 43.1: Appeal to Board of Appeal Appeal — time limit 43.11 (1) An appeal of a decision made under section 112 of the Employment Insurance Act must be brought to the Board of Appeal in the prescribed form and man- ner and within 30 days after the day on which the deci- sion is communicated to the appellant. Extension (2) The Board of Appeal may allow further time within which an appeal is to be brought, but in no case may an appeal be brought more than one year after the day on which the decision is communicated to the appellant. Decision in writing (3) The Board of Appeal must give a decision made un- der subsection (2) in writing and a copy of the decision must be sent to the appellant, the Commission and any other party. Constitutional questions 43.12 The Board of Appeal may not consider any ques- tion of constitutional law. Decision 43.13 (1) The Board of Appeal may dismiss the appeal or confirm, rescind or vary a decision of the Commission 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 38 Employment Insurance Board of Appeal Department of Employment and Social Development Act Sections 633-634 Page 404 in whole or in part or give the decision that the Commis- sion should have given. Decision in writing with reasons (2) The Board of Appeal must give a decision made un- der subsection (1) in writing, with reasons, and send copies of the decision and reasons to the appellant, the Commission and any other party. Time limits 43.14 The Executive Head may, in any particular case for special reasons, extend the time within which the Board of Appeal is required by regulation to make a deci- sion under subsection 43.13(1). Expenses and allowances 43.15 Any party who is required to attend a hearing may, if the Executive Head considers it warranted in any particular case for any reasons provided for in the regula- tions, be reimbursed for their travel or living expenses up to the amounts determined by the Treasury Board, or be paid any allowance, including compensation for lost re- muneration, in accordance with the rates fixed by the Treasury Board. Appeal — region 43.16 (1) An appeal is to be heard in the appellant’s re- gion, except in the circumstances provided for in the reg- ulations. Appeal — persons present (2) An appeal is to be heard in the presence of the parties or their counsel or agents, except in the circumstances provided for in the regulations. Hearings in private (3) All or part of a Board of Appeal hearing may be held in private in the circumstances provided for in the regu- lations. Representation of party 43.17 A party may, at their own expense, be represented by a representative of their choice. Powers of Board of Appeal 43.18 (1) Subject to section 43.12, the Board of Appeal may decide any question of law or fact that is necessary for the disposition of any application made or appeal brought under this Act. Employment Insurance Act (2) If a question specified in section 90 of the Employ- ment Insurance Act arises in the consideration of an 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 38 Employment Insurance Board of Appeal Department of Employment and Social Development Act Section 634 Page 405 application or in an appeal, it must be determined by an authorized officer of the Canada Revenue Agency, as pro- vided by that section. Abandonment of appeals 43.19 (1) The Board of Appeal may determine that an appeal before it has been abandoned if it has failed to contact the appellant despite reasonable efforts having been made to do so or if the appellant fails to communi- cate with it on being requested to do so. Reopening abandoned appeals (2) The Board of Appeal, on application, may reopen an appeal it has determined to be abandoned if it is satisfied that (a) in making the determination, it failed to observe a principle of natural justice; or (b) the appellant’s failure to communicate with it was due to circumstances beyond the appellant’s control and the application was made within 30 days after the day on which those circumstances were resolved. Decision in writing (3) The Board of Appeal must give a decision made un- der subsection (1) or (2) in writing and a copy of the deci- sion must be sent to the appellant, the Commission and any other party. 635 Subsection 44(2) of the Act is repealed. 636 Subsection 45(2) of the Act is replaced by the following: Chairperson and Vice-chairpersons (2) The Governor in Council designates one of the full- time members to hold office as the Chairperson and two full-time members to hold office as Vice-chairpersons, one of whom is responsible for the Appeal Division and one of whom is responsible for the General Division. 637 Subsections 46(2) and (3) of the Act are re- placed by the following: Members (2) Each member exercises any powers and performs any duties and functions that the Vice-chairperson who is re- sponsible for the Division for which they hear matters may assign. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 38 Employment Insurance Board of Appeal Department of Employment and Social Development Act Sections 634-637 Page 406 Assignment (3) The Chairperson may assign members to hear mat- ters in the Appeal Division or the General Division. 638 Section 47 of the Act is repealed. 639 Subsection 51(2) of the Act is replaced by the following: Absence — other (2) If subsection (1) does not apply owing to the absence or incapacity of the Vice-chairperson of the Appeal Divi- sion, or if the office of Vice-chairperson of the Appeal Di- vision is vacant, the Minister may authorize the Vice- chairperson of the General Division to act as Chairperson and that Vice-chairperson may exercise all the powers and perform all the duties and functions of the Chairper- son. 640 The heading “Organization of Tribunal” be- fore section 52 of the Act is repealed. 641 Subsection 52(1) of the Act is replaced by the following: Appeal — time limit 52 (1) An appeal of a decision must be brought to the General Division in the prescribed form and manner and within 90 days after the day on which the decision is communicated to the appellant. 642 Section 54 of the Act is replaced by the fol- lowing: Decision 54 (1) The General Division may dismiss the appeal or confirm, rescind or vary a decision of the Minister in whole or in part or give the decision that the Minister should have given. Reasons (2) The General Division may give a decision orally or in writing and must give reasons. Copies of the decision and reasons, written or, in the case of an oral decision and reasons, reduced to writing, must be sent to the appel- lant, the Minister and any other party. 643 The heading before section 55 of the Act is replaced by the following: Appeal to Tribunal — Appeal Division Decisions of Board of Appeal 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 38 Employment Insurance Board of Appeal Department of Employment and Social Development Act Sections 637-643 Page 407 644 The Act is amended by adding the following before section 55: Appeal 54.1 Any decision of the Board of Appeal may be ap- pealed to the Appeal Division by any person who is the subject of the decision and any other prescribed person. Appeal — time limit 54.2 (1) The appeal must be brought to the Appeal Divi- sion in the prescribed form and manner and within 30 days after the day on which the decision and reasons are communicated in writing to the appellant. Extension (2) The Appeal Division may allow further time within which an appeal is to be brought, but in no case may an appeal be brought more than one year after the day on which the decision and reasons are communicated in writing to the appellant. Grounds of appeal 54.3 The only grounds of appeal of a decision made by the Board of Appeal are that (a) the Board of Appeal failed to observe a principle of natural justice or otherwise acted beyond or refused to exercise its jurisdiction; (b) the Board of Appeal erred in law in making its de- cision, whether or not the error appears on the face of the record; (c) the Board of Appeal based its decision on an erro- neous finding of fact that it made in a perverse or capricious manner or without regard for the material before it; or (d) a question of constitutional law remains to be de- termined. New evidence — constitutional questions 54.4 If an appeal to the Appeal Division of a decision of the Board of Appeal is in respect of a question of consti- tutional law, the Appeal Division may hear new evidence in relation to the question. Decision 54.5 (1) The Appeal Division may dismiss the appeal, give the decision that the Board of Appeal should have given, refer the matter back to the Board of Appeal for re- consideration in accordance with any directions that the 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 38 Employment Insurance Board of Appeal Department of Employment and Social Development Act Section 644 Page 408 Appeal Division considers appropriate or confirm, re- scind or vary the decision of the Board of Appeal in whole or in part. The Appeal Division may make a decision on a question of constitutional law. Reasons (2) The Appeal Division must give its decision in writing, with reasons, and send copies of the decision and reasons to the appellant and any other party. Decisions of General Division 645 Sections 56 and 57 of the Act are replaced by the following: Leave 56 An appeal to the Appeal Division of a decision made by the Income Security Section may only be brought if leave to appeal is granted. Appeal — Employment Insurance Section 57 (1) An appeal of a decision made by the Employment Insurance Section must be brought to the Appeal Divi- sion in the prescribed form and manner and within 30 days after the day on which the decision and reasons are communicated in writing to the appellant. Appeal — Income Security Section (1.1) An application for leave to appeal a decision made by the Income Security Section must be made to the Ap- peal Division in the prescribed form and manner and within 90 days after the day on which the decision and reasons are communicated in writing to the appellant. Extension (2) The Appeal Division may allow further time within which an appeal is to be brought or an application for leave to appeal is to be made, but in no case may an ap- peal be brought or an application be made more than one year after the day on which the decision and reasons are communicated in writing to the appellant. 646 Sections 56 and 57 of the Act are replaced by the following: Leave 56 An appeal to the Appeal Division of a decision made by the General Division may only be brought if leave to appeal is granted. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 38 Employment Insurance Board of Appeal Department of Employment and Social Development Act Sections 644-646 Page 409 Appeal — General Division 57 (1) An application for leave to appeal a decision made by the General Division must be made to the Ap- peal Division in the prescribed form and manner and within 90 days after the day on which the decision and reasons are communicated in writing to the appellant. Extension (2) The Appeal Division may allow further time within which an application for leave to appeal is to be made, but in no case may an application be made more than one year after the day on which the decision and reasons are communicated in writing to the appellant. 647 (1) Subsection 58(1) of the Act is repealed. (2) Subsection 58(2) of the Act is repealed. 648 Section 58.1 of the Act is replaced by the fol- lowing: Leave to appeal — General Division 58.1 Leave to appeal a decision made by the General Di- vision is to be granted if the application for leave to ap- peal (a) raises an arguable case that the General Division failed to observe a principle of natural justice or other- wise acted beyond or refused to exercise its jurisdic- tion; (b) raises an arguable case that the General Division erred in law, in fact or in mixed law and fact, in mak- ing its decision; or (c) sets out evidence that was not presented to the General Division. 649 (1) Subsection 58.2(1) of the Act is replaced by the following: Decision — leave to appeal 58.2 (1) The Appeal Division must either grant or refuse leave to appeal a decision made by the Income Security Section. (2) Subsection 58.2(1) of the Act is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 38 Employment Insurance Board of Appeal Department of Employment and Social Development Act Sections 646-649 Page 410 Decision — leave to appeal 58.2 (1) The Appeal Division must either grant or refuse leave to appeal a decision made by the General Division. 650 Section 58.3 of the Act is replaced by the fol- lowing: Hearing de novo — General Division 58.3 An appeal to the Appeal Division of a decision made by the General Division is to be heard and deter- mined as a new proceeding. 651 (1) Subsection 59(1) of the Act is replaced by the following: Decision 59 (1) The Appeal Division may dismiss the appeal, give the decision that the General Division should have given or confirm, rescind or vary the decision of the General Division in whole or in part. In the case of an appeal of a decision made by the Employment Insurance Section, the Appeal Division may also refer the matter back to the Board of Appeal for reconsideration in accordance with any directions that the Appeal Division considers appro- priate. (2) Subsection 59(1) of the Act is replaced by the following: Decision 59 (1) The Appeal Division may dismiss the appeal, give the decision that the General Division should have given or confirm, rescind or vary the decision of the General Division in whole or in part. 652 Section 67 of the Act is replaced by the fol- lowing: Time limits 67 The Chairperson or a Vice-chairperson may, in any particular case for special reasons, extend the time within which the Tribunal is required by regulation to make a decision under subsections 54(1), 54.5(1), 58.2(1) and 59(1). 653 The Act is amended by adding the following after section 68: Access to documents and information by Appeal Division 68.01 On the request of the Appeal Division, the Board of Appeal must provide the Appeal Division with any documents and information that are necessary for the Appeal Division to decide an application or appeal. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 38 Employment Insurance Board of Appeal Department of Employment and Social Development Act Sections 649-653 Page 411 654 The Act is amended by adding the following before section 69: Commission 68.2 The Commission may, with the approval of the Governor in Council, make regulations with regard to the Board of Appeal respecting (a) the quorum for a panel referred to in subsection 43.05(1); (b) the appointment process for and conflicts of inter- est of members of the Board of Appeal referred to in paragraphs 43.03(1)(b) and (c); (c) the circumstances in which a hearing may be held in private; (d) the procedure to be followed on applications made or appeals brought to the Board of Appeal; (e) the circumstances under which information is deemed to have been communicated or received; (f) the time within which the Board of Appeal must make a decision under subsection 43.13(1); (g) any special reasons for the purposes of section 43.14; (h) any reasons for the purposes of section 43.15; (i) the power to exclude any person from a hearing when oral evidence concerning a circumstance of sex- ual or other harassment is being given; (j) the form and manner that is to be prescribed for the purposes of subsection 43.11(1); (k) regions for the purposes of subsections 43.04(5) and 43.16(1); (l) the circumstances for the purposes of subsection 43.16(1); and (m) the circumstances for the purposes of subsection 43.16(2). 655 (1) Paragraph 69(c) of the Act is replaced by the following: (c) the time within which the Tribunal must make a decision under subsections 54(1), 54.5(1), 58.2(1) and 59(1); (2) Paragraph 69(f) of the Act is replaced by the following: 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 38 Employment Insurance Board of Appeal Department of Employment and Social Development Act Sections 654-655 Page 412 (f) anything that is to be prescribed by subsection 52(1), section 54.1, subsection 54.2(1), section 55 and subsections 57(1) and (1.1). (3) Paragraph 69(f) of the Act is replaced by the following: (f) anything that is to be prescribed by subsection 52(1), section 54.1, subsection 54.2(1), section 55 and subsection 57(1). Consequential Amendments R.S, c. F-7; 2002, c. 8, s. 14 Federal Courts Act 656 Paragraph 28(1)(g.1) of the Federal Courts Act is replaced by the following: (g.1) the Appeal Division of the Social Security Tri- bunal established under section 44 of the Department of Employment and Social Development Act, unless the decision is made under subsection 54.2(2) or 57(2) or section 58.2 of that Act or relates to an appeal re- specting a decision relating to further time to make a request under subsection 43.11(2) or 52(2) of that Act, section 81 of the Canada Pension Plan, section 27.1 of the Old Age Security Act or section 112 of the Employ- ment Insurance Act; R.S., c. L-1 Labour Adjustment Benefits Act 657 (1) The definition Social Security Tribunal in subsection 2(1) of the Labour Adjustment Bene- fits Act is repealed. (2) Subsection 2(1) of the Act is amended by adding the following in alphabetical order: Employment Insurance Board of Appeal means the Employment Insurance Board of Appeal established un- der section 43.01 of the Department of Employment and Social Development Act. (Conseil d’appel en assu- rance-emploi) 658 Subsections 13(6) and (7) of the Act are re- placed by the following: Reference to Employment Insurance Board of Appeal (6) The Commission may at any time within 14 days after receiving an application under subsection (1) refer the 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 38 Employment Insurance Board of Appeal Department of Employment and Social Development Act Sections 655-658 Page 413 application or a question arising from it to the Employ- ment Insurance Board of Appeal for a decision on it. Proceedings before Employment Insurance Board of Appeal (7) If an application or question is referred to the Em- ployment Insurance Board of Appeal under subsection (6), the Employment Insurance Board of Appeal must conduct its proceedings in respect of that application or question in accordance with the procedure for appeals under the Department of Employment and Social Devel- opment Act. 659 Subsection 31(2) of the Act is replaced by the following: Appeal of Commission decision (2) Any person may, at any time within 30 days after the day a decision of the Commission under this Act, other than subsection 14(2) or (3), is communicated to them, or within any further time that the Commission may in any particular case for special reason allow, appeal to the Employment Insurance Board of Appeal. R.S., c. 1 (5th Supp.) Income Tax Act 660 Subparagraph 56(1)(l)(ii) of the Income Tax Act is replaced by the following: (ii) reimbursement of costs incurred in relation to a decision of the Canada Employment Insurance Commission under the Employment Insurance Act or to an appeal of such a decision to the Social Se- curity Tribunal or the Employment Insurance Board of Appeal under the Department of Employ- ment and Social Development Act, 661 Subparagraph 60(o)(ii) of the Act is replaced by the following: (ii) a decision of the Canada Employment Insur- ance Commission under the Employment Insur- ance Act or to an appeal of such a decision to the Social Security Tribunal or the Employment Insur- ance Board of Appeal under the Department of Em- ployment and Social Development Act, 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 38 Employment Insurance Board of Appeal Consequential Amendments Sections 658-661 Page 414 1996, c. 23 Employment Insurance Act 662 Section 113 of the Employment Insurance Act is replaced by the following: Appeal to Employment Insurance Board of Appeal 113 A party who is dissatisfied with a decision of the Commission made under section 112, including a deci- sion in relation to further time to make a request, may appeal the decision to the Employment Insurance Board of Appeal established under section 43.01 of the Depart- ment of Employment and Social Development Act. 663 (1) Subsection 114(1) of the Act is replaced by the following: Payment of benefit pending appeal 114 (1) If a claim for benefits is allowed by the General Division of the Social Security Tribunal established under section 44 of the Department of Employment and Social Development Act or the Employment Insurance Board of Appeal established under section 43.01 of that Act, bene- fits are payable in accordance with the decision of the Tribunal or the Employment Insurance Board of Appeal, as the case may be, even though an appeal is pending, and any benefits paid under this section after the deci- sion of the Tribunal or the Employment Insurance Board of Appeal, as the case may be, are to be treated as having been duly paid and are not recoverable from the claimant, even if the final determination of the question is adverse to the claimant. (2) Subsection 114(1) of the Act is replaced by the following: Payment of benefit pending appeal 114 (1) If a claim for benefits is allowed by the Employ- ment Insurance Board of Appeal established under sec- tion 43.01 of the Department of Employment and Social Development Act, benefits are payable in accordance with the decision of the Employment Insurance Board of Appeal even though an appeal is pending, and any bene- fits paid under this section after the decision of the Em- ployment Insurance Board of Appeal are to be treated as having been duly paid and are not recoverable from the claimant, even if the final determination of the question is adverse to the claimant. (3) Paragraph 114(2)(a) of the Act is replaced by the following: (a) if the appeal to the Appeal Division of the Social Security Tribunal was brought within 21 days after the day on which the decision of the General Division of 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 38 Employment Insurance Board of Appeal Consequential Amendments Sections 662-663 Page 415 the Social Security Tribunal or the Employment Insur- ance Board of Appeal, as the case may be, was given and on the ground that the claimant ought to be disen- titled under section 36; and (4) Paragraph 114(2)(a) of the Act is replaced by the following: (a) if the appeal to the Appeal Division of the Social Security Tribunal was brought within 21 days after the day on which the decision of the Employment Insur- ance Board of Appeal was given and on the ground that the claimant ought to be disentitled under section 36; and Transitional Provisions Definitions 664 The following definitions apply in this sec- tion and sections 665 to 678. Appeal Division means the Appeal Division of the Tribunal. (division d’appel) Board of Appeal means the Employment Insur- ance Board of Appeal established under section 43.01 of the Department of Employment and So- cial Development Act. (Conseil d’appel) Employment Insurance Section means the Employ- ment Insurance Section of the General Division. (section de l’assurance-emploi) General Division means, except for the purposes of subsections 665(2) and 667(2), the General Divi- sion referred to in section 44 of the Department of Employment and Social Development Act, as it reads on the day on which this section comes into force. (division générale) Tribunal means the Social Security Tribunal es- tablished under section 44 of the Department of Employment and Social Development Act. (Tri- bunal) Part-time members 665 (1) Part-time members of the Tribunal who, immediately before the day on which section 635 comes into force, are assigned to hear matters in the Employment Insurance Section become part- time members of the Board of Appeal on that day. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 38 Employment Insurance Board of Appeal Consequential Amendments Sections 663-665 Page 416 Full-time members (2) Full-time members of the Tribunal who, im- mediately before the day on which section 635 comes into force, are assigned to hear matters in the Employment Insurance Section are assigned to hear matters in the General Division on that day. Vice-chairperson (3) The Vice-chairperson of the Tribunal who, immediately before the day on which section 635 comes into force, is responsible for the Employ- ment Insurance Section becomes a full-time re- gional coordinator of the Board of Appeal on that day. Power of Governor in Council (4) On the recommendation of the Minister of Employment and Social Development made after that Minister has consulted with the Chairperson of the Tribunal and the Executive Head of the Board of Appeal, the Governor in Council may make an order specifying that, on a day that is specified in the order and that is before the day on which section 635 comes into force, (a) the Vice-chairperson who is responsible for the Employment Insurance Section becomes a full-time regional coordinator of the Board of Appeal; and (b) a part-time member of the Tribunal who is assigned to hear matters in the Employment Insurance Section becomes a part-time mem- ber of the Board of Appeal. Members of Board of Appeal 666 (1) Each member of the Board of Appeal re- ferred to in subsection 665(1) or paragraph 665(4)(b) (a) on becoming a member, ceases to be a member of the Tribunal; (b) subject to paragraph (d), continues in of- fice for the remainder of the term for which they were appointed as a member of the Tri- bunal; (c) for that term, is deemed to be appointed under paragraph 43.03(1)(a) of the Department of Employment and Social Development Act; 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 38 Employment Insurance Board of Appeal Transitional Provisions Sections 665-666 Page 417 (d) despite paragraph 43.03(1)(a) of that Act, holds office during good behaviour for that term and may be removed for cause by the Governor in Council at any time during that term; and (e) on the expiry of that term, is eligible to be reappointed under that paragraph 43.03(1)(a) to hold office at pleasure. Regional coordinator of Board of Appeal (2) The regional coordinator of the Board of Ap- peal referred to in subsection 665(3) or paragraph 665(4)(a) (a) on becoming a regional coordinator, ceases to be a member of the Tribunal; (b) subject to paragraph (d), continues in of- fice for the remainder of the term for which they were appointed as a member of the Tri- bunal; (c) for that term, is deemed to be appointed under subsection 43.02(2) of the Department of Employment and Social Development Act; (d) despite subsection 43.02(2) of that Act, holds office during good behaviour for that term and may be removed for cause by the Governor in Council at any time during that term; and (e) on the expiry of that term, is eligible to be reappointed under that subsection 43.02(2) to hold office at pleasure. Part-time members — remuneration (3) On becoming a part-time member of the Board of Appeal and for the remainder of the term referred to in paragraph (1)(b), a former part-time member of the Tribunal who was as- signed to hear matters in the Employment Insur- ance Section is entitled to remuneration that is no less than the remuneration that they received as a part-time member of the Tribunal. Vice-chairperson — remuneration (4) On becoming a regional coordinator of the Board of Appeal and for the remainder of the term referred to in paragraph (2)(b), a former Vice-chairperson of the Tribunal who was re- sponsible for the Employment Insurance Section is entitled to the same remuneration as they re- ceived as Vice-chairperson. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 38 Employment Insurance Board of Appeal Transitional Provisions Section 666 Page 418 No compensation 667 (1) Despite the provisions of any contract, agreement or order, no former member of the General Division, including the former Vice- chairperson responsible for the Employment In- surance Section, has any right to claim or receive any compensation, damages, indemnity or other form of relief from His Majesty in right of Canada or from any employee or agent of His Majesty for ceasing to hold office in the Tribunal, or for the abolition of that office, by the opera- tion of this Division. No compensation — full-time members (2) Despite the provisions of any contract, agree- ment or order, no full-time member of the Tri- bunal who was assigned to hear matters in the Employment Insurance Section has any right to claim or receive any compensation, damages, in- demnity or other form of relief from His Majesty in right of Canada or from any employee or agent of His Majesty for being assigned to hear matters in the General Division by the operation of this Division. Application for leave to appeal 668 If an application for leave to appeal a deci- sion made by the Employment Insurance Section is ongoing before the Appeal Division immediate- ly before the day on which section 634 comes into force, the application for leave to appeal becomes a notice of appeal on that day. The notice of ap- peal is deemed to have been filed on the day on which the application for leave to appeal was filed. Appeal of Employment Insurance Section decision 669 Any decision made by the Employment In- surance Section before the day on which section 635 comes into force may be appealed to the Ap- peal Division and sections 55, 57, 58 and 59 of the Department of Employment and Social Develop- ment Act, as those sections read on the day on which section 634 comes into force, apply in re- spect of the appeal. Ongoing appeal of Employment Insurance Section decision 670 An appeal of a decision made by the Employ- ment Insurance Section that is ongoing before the Appeal Division immediately before the day on which section 635 comes into force is to be 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 38 Employment Insurance Board of Appeal Transitional Provisions Sections 667-670 Page 419 dealt with in accordance with sections 57, 58 and 59 of the Department of Employment and Social Development Act, as those sections read on the day on which section 634 comes into force. Question of constitutional law 671 The Appeal Division is not authorized under subsection 59(1) of the Department of Employ- ment and Social Development Act, as it read on the day on which section 634 comes into force, to refer a question of constitutional law back to the Board of Appeal for reconsideration. Ongoing appeal before Employment Insurance Section 672 An appeal that is ongoing before the Em- ployment Insurance Section immediately before the day on which section 635 comes into force is deemed to be an appeal before the Board of Ap- peal under subsection 43.11(1) of the Department of Employment and Social Development Act on that day. Board of Appeal access to documents and information 673 The Board of Appeal is entitled to access any documents and information of the Tribunal that are necessary for the Board of Appeal to decide an application or appeal. Transfer of documents and information 674 The Tribunal must transfer to the Board of Appeal any documents and information that re- late to appeals referred to in section 672. Section 53 of Department of Employment and Social Development Act 675 Despite section 240 of the Budget Implemen- tation Act, 2021, No. 1, if, on an appeal of a deci- sion made by the Employment Insurance Section under section 53 of the Department of Employ- ment and Social Development Act, as it read im- mediately before the day on which Division 20 of the Budget Implementation Act, 2021, No. 1 comes into force, the Appeal Division decides to refer a matter back to the Employment Insur- ance Section for reconsideration, the Appeal Di- vision must refer the matter back to the Board of Appeal for reconsideration. Section 241 of Budget Implementation Act, 2021, No. 1 676 (1) Section 241 of the Budget Implementa- tion Act, 2021, No. 1 does not apply in respect of a 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 38 Employment Insurance Board of Appeal Transitional Provisions Sections 670-676 Page 420 decision in relation to the Employment Insur- ance Act under section 66 of the Department of Employment and Social Development Act, as it read immediately before the day on which Divi- sion 20 of the Budget Implementation Act, 2021, No. 1 comes into force, or in respect of an appli- cation under that section 66 in relation to the Em- ployment Insurance Act that is ongoing immedi- ately before the day on which section 634 comes into force. Section 66 of Department of Employment and Social Development Act (2) Any matter relating to a decision or an appli- cation referred to in subsection (1) is to be dealt with in accordance with section 66 of the Depart- ment of Employment and Social Development Act, as it read immediately before the day on which Division 20 of the Budget Implementation Act, 2021, No. 1 comes into force. Employment Insurance Act 677 Subsections 114(1) and (2) of the Employ- ment Insurance Act, as those subsections read on the day on which section 634 comes into force, continue to apply in relation to a claim for bene- fits that is allowed by the General Division before the day on which section 635 comes into force. Labour Adjustment Benefits Act 678 (1) Subsection 13(7) of the Labour Adjust- ment Benefits Act, as it read immediately before the day on which section 634 comes into force, continues to apply — until the day on which sec- tion 635 comes into force — in respect of an appli- cation or a question that was referred to the Gen- eral Division under subsection 13(6) of that Act before the day on which section 634 comes into force. Ongoing application or question (2) An application or a question that was referred to the General Division under subsection 13(6) of the Labour Adjustment Benefits Act and that is ongoing immediately before the day on which section 635 comes into force is deemed to be an application or a question referred to the Board of Appeal on that day. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 38 Employment Insurance Board of Appeal Transitional Provisions Sections 676-678 Page 421 Coming into Force Order in council 679 (1) Sections 634 and 643 to 645, subsections 647(2), 649(1) and 651(1), sections 652 and 653, sub- sections 655(1) and (2), sections 656 to 662, subsec- tions 663(1) and (3), sections 668, 671, 673, 675 and 676 and subsection 678(1) come into force on a day to be fixed by order of the Governor in Coun- cil. Order in council (2) Sections 635 to 639, 641, 642 and 646, subsection 647(1), section 648, subsection 649(2), section 650, subsections 651(2), 655(3) and 663(2) and (4), sec- tions 669, 670, 672, 674 and 677 and subsection 678(2) come into force on a day to be fixed by or- der of the Governor in Council, but that day must be after the day fixed under subsection (1). DIVISION 39 2000, c. 9 Canada Elections Act Amendment to the Act 680 The Canada Elections Act is amended by adding the following after section 385.1: Definition of personal information 385.2 (1) Despite the definition personal information in subsection 2(1), for the purposes of this section, per- sonal information means information about an identifi- able individual. Collection, use, disclosure, retention and disposal (2) In order to participate in public affairs by endorsing one or more of its members as candidates and supporting their election, any registered party or eligible party, as well as any person or organization acting on the party’s behalf, including the party’s candidates, electoral district associations, officers, agents, employees, volunteers and representatives, may, subject to this Act and any other applicable federal Act, collect, use, disclose, retain and dispose of personal information in accordance with the party’s privacy policy. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 38 Employment Insurance Board of Appeal Coming into Force Sections 679-680 Page 422 Purpose (3) The purpose of this section is to provide for a nation- al, uniform, exclusive and complete regime applicable to registered parties and eligible parties respecting their collection, use, disclosure, retention and disposal of per- sonal information. Application of Amendment Election within six months 681 Despite subsection 554(1) of the Canada Elections Act, the amendment to that Act made by section 680 applies in an election for which the writ is issued within six months after the day on which this Act receives royal assent. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 PART 4 Various Measures DIVISION 39 Canada Elections Act Amendment to the Act Sections 680-681 Page 423 SCHEDULE (Section 269) SCHEDULE 2 (Section 3) Protocol on the Status of International Military Headquarters set up pursuant to the North Atlantic Treaty The parties to the North Atlantic Treaty signed in Washington on 4th April, 1949, Considering that international military Headquarters may be established in their territories, by separate arrangement, un- der the North Atlantic Treaty, and Desiring to define the status of such Headquarters and of the personnel thereof within the North Atlantic Treaty area, Have agreed to the present Protocol to the Agreement signed in London on 19th June, 1951, regarding the Status of their Forces: Article 1 In the present Protocol the expression (a) the Agreement means the Agreement signed in Lon- don on 19th June, 1951, by the Parties to the North At- lantic Treaty regarding the status of their Forces; (b) Supreme Headquarters means Supreme Headquar- ters Allied Powers in Europe, Headquarters of the Supreme Allied Commander Atlantic and any equivalent international military Headquarters set up pursuant to the North Atlantic Treaty; (c) Allied Headquarters means any Supreme Headquar- ters and any international military Headquarters set up pursuant to the North Atlantic Treaty which is immediate- ly subordinate to a Supreme Headquarters; (d) North Atlantic Council means the Council estab- lished by Article 9 of the North Atlantic Treaty or any of its subsidiary bodies authorised to act on its behalf. Article 2 Subject to the following provisions of this Protocol, the Agree- ment shall apply to Allied Headquarters in the territory of a Party to the present Protocol in the North Atlantic Treaty area, and to the military and civilian personnel of such Head- quarters and their dependents included in the definitions in sub-paragraphs (a), (b) and (c) of paragraph 1 of Article 3 of this Protocol, when such personnel are present in any such territory in connection with their official duties or, in the case of dependents, the official duties of their spouse or parent. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 SCHEDULE Page 424 Article 3 1 For the purpose of applying the Agreement to an Allied Headquarters the expressions ‘force’, ‘civilian component’ and ‘dependent’, wherever they occur in the Agreement shall have the meanings set out below: (a) force means the personnel attached to the Allied Headquarters who belong to the land, sea or air armed ser- vices of any Party to the North Atlantic Treaty; (b) civilian component means civilian personnel who are not stateless persons, nor nationals of any State which is not a Party to the Treaty, nor nationals of, nor ordinarily resident in the receiving State, an who are (i) attached to the Allied Headquarters and in the employ of an armed service of a Party to the North Atlantic Treaty or (ii) in such categories of civilian personnel in the employ of the Allied Headquarters as the North Atlantic Council shall de- cide; (c) dependent means the spouse of a member of a force or civilian component, as defined in sub-paragraphs (a) and (b) of this paragraph, or a child of such member de- pending on him or her support. 2 An Allied Headquarters shall be considered to be a force for the purposes of Article II, paragraph 2 of Article V, para- graph 10 of Article VII, paragraphs 2, 3, 4, 7 and 8 of Article IX, and Article XIII, of the Agreement. Article 4 The rights and obligations which the Agreement gives to or imposes upon the sending State or its authorities in respect of its forces or their civilian components or dependents shall, in respect of an Allied Headquarters and its personnel and their dependents to whom the Agreement applies in accordance with Article 2 of the present Protocol, be vested in or attached to the appropriate Supreme Headquarters and the authorities responsible under it, except that: (a) the right which is given by Article VII of the Agree- ment to the military authorities of the sending State to ex- ercise criminal and disciplinary jurisdiction shall be vested in the military authorities of the State, if any, to whose military law the person concerned is subject; (b) the obligations imposed upon the sending state or its authorities by Article II, paragraph 4 of Article III, para- graphs 5 (a) and 6 (a) of Article VII paragraphs 9 and 10 of Article VIII, and Article XIII, of the Agreement, shall at- tach both to the Allied Headquarters and to any State whose armed service, or any member or employee of whose armed service, or the dependent of such member or employee, is concerned; (c) for the purposes of paragraphs 2 (a) and 5 of Article III, and Article XIV, of the Agreement the sending State shall be, in the case of members of a force and their depen- dents, the State to whose armed service the member be- longs, or, in the case of members of a civilian component and their dependents, the State, if any, by whose armed service the member is employed; 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 SCHEDULE Page 425 (d) the obligations imposed on the sending State by virtue of paragraphs 6 and 7 of Article VIII of the Agreement shall attach to the State to whose armed service the person belongs whose act or omission has given rise to the claim or, in the case of a member of a civilian component, to the State by whose armed service he is employed or, if there is no such State, to the Allied Headquarters of which the per- son concerned is a member. Both the State, if any, to which obligations attach under this paragraph and the Allied Headquarters concerned shall have the rights of the sending State in connection with the appoint- ment of an arbitrator under paragraph 8 of Article VIII. Article 5 Every member of an Allied Headquarters shall have a person- al identity card issued by the Headquarters showing names, date and place of birth, nationality, rank or grade, number (if any), photograph and period of validity. This card must be presented on demand. Article 6 1 The obligations to waive claims imposed on the Contract- ing Parties by Article 8 of the Agreement shall attach both to the Allied Headquarters and to any Party to this Protocol con- cerned. 2 For the purposes of paragraphs 1 and 2 of Article VIII of the Agreement, (a) property owned by an Allied Headquarters or by a Par- ty to this Protocol and used by an Allied Headquarters shall be deemed to be property owned by a Contracting Party and used by its armed services; (b) damage caused by a member of a force or civilian com- ponent as defined in paragraph 1 of Article 3 of this Proto- col or by any other employee of an Allied Headquarters shall be deemed to be damage caused by a member or em- ployee of the armed services of a Contracting Party; (c) the definition of the expression ‘owned by a Contacting Party’ in paragraph 3 of Article VIII shall apply in respect of an Allied Headquarters. 3 The claims to which paragraph 5 of Article VIII of the Agreement applies shall include claims (other than contractu- al claims and claims to which paragraphs 6 or 7 of that Article apply) arising out of acts or omissions of any employees of an Allied Headquarters, or out of any other act, omission or oc- currence for which an Allied Headquarters, or out of any oth- er act, omissions or occurrence for which an Allied Headquar- ters is legally responsible, and causing in the territory of a re- ceiving State to third parties, other than any of the Parties to this Protocol. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 SCHEDULE Page 426 Article 7 1 The exemption from taxation accorded under Article X of the Agreement to members of a force or civilian component in respect of their salaries and emoluments shall apply, as re- gards personnel of an Allied Headquarters within the defini- tions in paragraph 1 (a) and (b) (i) of Article 3 of this Proto- col, to salaries and emoluments paid to them as such person- nel by the armed service to which they belong or by which they are employed, except that this paragraph shall not ex- empt any such member or employee from taxation imposed by a State of which he is a national. 2 Employees of an Allied Headquarters of categories agreed by the North Atlantic Council shall be exempted from taxa- tion on the salaries and emoluments paid to them by the Al- lied Headquarters in their capacity as such employees. Any Party to the present Protocol may, however, conclude an ar- rangement with the Allied Headquarters whereby such Party will employ and assign to the Allied Headquarters all of its nationals (except, if such Party so desires, any not ordinarily resident within its territory) who are to serve on the staff of the Allied Headquarters and pay the salaries and emoluments of such persons from its own funds, at a scale fixes by it. The salaries and emoluments so paid may be taxed by the Party concerned but shall be exempted from taxation by any other Party. If such an arrangement is entered into by any Party to the present Protocol and is subsequently modified or termi- nated, Parties to the present Protocol shall no longer be bound under the first sentence of this paragraph to exempt from taxation the salaries and emoluments paid to their na- tionals. Article 8 1 For the purpose of facilitating the establishment, construc- tion, maintenance and operation of Allied Headquarters, these Headquarters shall be relieved, so far as practicable, from duties and taxes, affecting expenditures by them in the interest of common defence and for their official and exclu- sive benefit, and each Party to the present Protocol shall enter into negotiations with any Allied Headquarters operating in its territory for the purpose of concluding an agreement to give effect to this provision. 2 An Allied Headquarters shall have the rights granted to a force under Article XI of the Agreement subject to the same conditions. 3 The provisions in paragraphs 5 and 6 of Article XI of the Agreement shall not apply to nationals of the receiving States, unless such nationals belong to the armed services of a Party to this Protocol other than the receiving State. 4 The expression ‘duties and taxes’ in this Article does not include charges for services rendered. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 SCHEDULE Page 427 Article 9 Except in so far as the North Atlantic Council may decide oth- erwise, (a) any assets acquired from the international funds of an Allied Headquarters under its capital budget and no longer required by the Headquarters shall be disposed of under arrangements approved by the North Atlantic Council and the proceeds shall be distributed among or credited to the Parties to the North Atlantic Treaty in the proportions in which they have contributed to the capital costs of the Headquarters. The receiving State shall have the prior right to acquire any immovable property so disposed of in its territory provided that it offers terms no less favourable than those offered by any third party; (b) any land, buildings or fixed installations provided for the use of an Allied Headquarters by the receiving State without charge to the Headquarters (other than a nominal charge) and no longer required by the Headquarters shall be handed back to the receiving State, and any increase or loss in the value of the property provided by the receiving State resulting from its use by the Headquarters shall be determined by the North Atlantic Council (taking into con- sideration any applicable law of the receiving State) and distributed among or credited or debited to the Parties to the North Atlantic Treaty in the proportions in which they have contributed to the capital costs of the Headquarters. Article 10 Each Supreme Headquarters shall possess juridical personali- ty; it shall have the capacity to conclude contracts and to ac- quire and dispose of property. The receiving State may, how- ever, make the exercise of such capacity subject to special ar- rangements between it and the Supreme Headquarters or any subordinate Allied Headquarters acting on behalf of the Supreme Headquarters. Article 11 1 Subject to the provisions of Article VIII of the Agreement, a Supreme Headquarters may engage in legal proceedings as claimant or defendant. However, the receiving State and the Supreme Headquarters or any subordinate Allied Headquar- ters authorized by it may agree that the receiving State shall act on behalf of the Supreme Headquarters in any legal pro- ceedings to which that Headquarters is a party before the courts of the receiving State. 2 No measure of execution or measure directed to the seizure or attachment of its property or funds shall be taken against any Allied Headquarters, except for the purposes of para- graph 6 (a) of Article VII and Article XIII of the Agreement. Article 12 1 To enable it to operate its international budget, an Allied Headquarters may hold currency of any kind and operate ac- counts in any currency. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 SCHEDULE Page 428 2 The Parties to the present Protocol shall, at the request of an Allied Headquarters, facilitate transfers of the funds of such Headquarters from one country to another and the con- version of any currency held by an Allied Headquarters into any other currency, when necessary to meet the requirements of any Allied Headquarters. Article 13 The archives and other official documents of an Allied Head- quarters kept in premises used by those Headquarters or in the possession of any properly authorized member of the Headquarters shall be inviolable, unless the Headquarters has waived this immunity. The Headquarters shall , at the re- quest of the receiving State and in the presence of a represen- tative of that State, verify the nature of any documents to con- firm that they are entitled to immunity under this Article. Article 14 1 The whole or any part of the present Protocol or of the Agreement may be applied, by decision of the North Atlantic Council, to any international military Headquarters or orga- nization (not included in the definitions in paragraphs (b) and (c) of Article 1 of this Protocol) which is established pur- suant to the North Atlantic Treaty. 2 When the European Defence Community comes into being, the present Protocol may be applied to the personnel of the European Defence Forces attached to an Allied Headquarters and their dependents at such time and in such manner as may be determined by the North Atlantic Council. Article 15 All differences between the Parties to the present Protocol or between any such Parties and any Allied Headquarters relat- ing to the interpretation or application of the Protocol shall be settled by negotiation between the parties in dispute with- out recourse to any outside jurisdiction. Except where express provision is made to the contrary in the present Protocol or in the Agreement, differences which cannot be settled by direct negotiation shall be referred to the North Atlantic Council. Article 16 1 Articles XV and XVII to XX of the Agreement shall apply as regards the present Protocol as if they were an integral part thereof, but so that the Protocol may be reviewed, suspended, ratified, acceded to, denounced or extended in accordance with those provisions independently from the Agreement. 2 The present Protocol may be supplemented by bilateral agreement between the receiving State and a Supreme Head- quarters, and the authorities of a receiving State and a Supreme Headquarters may agree to give effect, by adminis- trative means in advance of ratification, to any provisions of this Protocol or of the Agreement as applied by it. In witness whereof the undersigned Plenipotentiaries have signed the present Protocol. 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 SCHEDULE Page 429 Done in Paris this 28th day of August 1952, in the English and French languages, both texts being equally authoritative, in a single original which shall be deposited in the archives of the Government of the United States of America. The Govern- ment of the United States of America shall transmit certified copies thereof to all the signatory and acceding States. Published under authority of the Speaker of the House of Commons 2021-2022-2023 Chapter 26: Budget Implementation Act, 2023, No. 1 SCHEDULE Page 430 Available on the House of Commons website Disponible sur le site Web de la Chambre des com