Budget Implementation Act, 2001

Link to law: http://laws-lois.justice.gc.ca/eng/AnnualStatutes/2002_9/FullText.html

Budget Implementation Act, 2001

S.C. 2002, c. 9

Assented to 2002-03-27

An Act to implement certain provisions of the budget tabled in Parliament on December 10, 2001

SUMMARY

PART 1

Part 1 enacts the Canadian Air Transport Security Authority Act, which establishes the Canadian Air Transport Security Authority to carry out the mandate described therein, including taking actions for the effective and efficient screening of persons who access aircraft or restricted areas through screening points. The Authority is also responsible for ensuring consistency in the delivery of screening across Canada. The Authority is managed by a board of directors composed of eleven members appointed by the Governor in Council on the recommendation of the Minister of Transport. The Authority may authorize an operator of an aerodrome designated by regulation to deliver screening on its behalf at that aerodrome, subject to any terms and conditions that it establishes. The Authority is subject to Part X of the Financial Administration Act except for derogations set out in Part 1 of this enactment.

PART 2

Part 2 enacts the Air Travellers Security Charge Act, which implements the Air Travellers Security Charge announced in Budget 2001. The Charge will take effect on April 1, 2002 and apply in respect of emplanements in Canada. The Charge will be payable by purchasers of air travel and collected by registered air carriers or their agents at the time of sale.

PART 3

Part 3 amends the Employment Insurance Act and the Employment Insurance (Fishing) Regulations to extend the benefit period and the entitlement to special benefits for maternity claimants who, without the amendment, could not receive all of their special benefits. It also amends the Act and the Regulations to extend the benefit period and the period during which a claimant may receive parental benefits, if the claimant’s child is hospitalized. It also makes related amendments to the Canada Labour Code to give employees an option as to when their parental leave begins.

PART 4

Part 4 implements the Income Tax Act measures announced in the Budget of December 10, 2001. These include provisions that

— 
allow apprentice vehicle mechanics to deduct a portion of the cost of new tools acquired after 2001

— 
allow individuals to claim a deduction to offset the inclusion in income of tuition assistance for adult basic education received under certain government programs

— 
extend the education tax credit to students who receive financial assistance for post-secondary education under certain government training programs

— 
provide for tax-deferred intergenerational transfers of commercial woodlot operations that are farming businesses

— 
make permanent the special tax assistance for donations of certain securities to public charities

— 
make entitlements to the goods and services tax credit more responsive to changes in family circumstances

— 
allow small businesses to defer for at least six months corporate tax instalments that would otherwise become payable in the first quarter of 2002

— 
clarify the application of section 115.2 of the Act to partnerships and their members

— 
allow full deductibility of the costs of meals provided at a temporary work camp established to provide room and board to employees at a construction work site

PART 5

Part 5 enacts the Canada Fund for Africa Act, which establishes a program to provide contributions for the economic and social development of Africa.

PART 6

Part 6 enacts the Canada Strategic Infrastructure Fund Act, which establishes a program. The object of the program is to provide contributions for the carrying out of large-scale strategic infrastructure projects that contribute to economic growth or quality of life in Canada and advance Canada’s objectives with respect to infrastructure.

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

SHORT TITLE

Marginal note:Short title

1. This Act may be cited as the Budget Implementation Act, 2001.

PART 1 AIR TRANSPORT SECURITY

Canadian Air Transport Security Authority Act

2. The Canadian Air Transport Security Authority Act is enacted as follows:

An Act to establish the Canadian Air Transport Security Authority
SHORT TITLE

Marginal note:Short title

1. This Act may be cited as the Canadian Air Transport Security Authority Act.

INTERPRETATION

Marginal note:Definitions

2. The definitions in this section apply in this Act.

“Authority”

« Administration »

“Authority” means the Canadian Air Transport Security Authority established by subsection 5(1).

“authorized aerodrome operator”

« exploitant d’aérodrome autorisé »

“authorized aerodrome operator” means an operator of an aerodrome designated by the regulations who is authorized by the Authority under section 7 to deliver screening.

“board”

« conseil »

“board” means the board of directors of the Authority established by section 10.

“Minister”

« ministre »

“Minister” means the Minister of Transport.

“screening”

« contrôle »

“screening” means screening, including a search, performed in the manner and under the circumstances prescribed in the aviation security regulations or in security measures made under the Aeronautics Act.

“screening contractor”

« fournisseur de services de contrôle »

“screening contractor” means a contractor retained by the Authority or an authorized aerodrome operator to deliver screening.

“screening officer”

« agent de contrôle »

“screening officer” means a screening officer who is employed by the Authority, an authorized aerodrome operator or a screening contractor to perform screening.

“screening point”

« point de contrôle »

“screening point” means a point where screening is delivered, either directly or through a screening contractor, by or on behalf of the Authority in order to meet the requirements of the aviation security regulations or security measures made under the Aeronautics Act.

Marginal note:Interpretation

3. (1) Unless the context otherwise requires, words and expressions used in this Act have the same meaning as in the Aeronautics Act and the aviation security regulations made under it.

Marginal note:Air transport security

(2) Unless specifically provided for, nothing in this Act affects air transport security responsibilities imposed under the Aeronautics Act on persons other than the Authority.

Marginal note:Inconsistencies with other Acts

(3) In the event of any inconsistency between the provisions of this Act and the provisions of Part X of the Financial Administration Act, the provisions of this Act prevail.

ROLE OF THE MINISTER

Marginal note:Minister responsible

4. (1) The Minister is the appropriate minister for the Authority for the purposes of Part X of the Financial Administration Act.

Marginal note:Directions to the Authority

(2) The Minister may issue a written direction to the Authority, addressed to the Chairperson, on any matter related to air transport security.

Marginal note:Directions binding

(3) The Authority and its directors, officers and employees of the Authority must comply with a direction issued under this section.

Marginal note:Directions in Authority’s best interest

(4) Compliance with the direction is deemed to be in the best interests of the Authority.

Marginal note:Directions not statutory instruments

(5) A direction is not a statutory instrument for the purposes of the Statutory Instruments Act.

ESTABLISHMENT AND MANDATE OF THE AUTHORITY

Marginal note:Establishment

5. (1) There is hereby established a body corporate to be called the Canadian Air Transport Security Authority.

Marginal note:Agent of Her Majesty

(2) The Authority is for all purposes an agent of Her Majesty in right of Canada.

Marginal note:Headquarters

(3) The headquarters of the Authority must be at such place in Canada as may be designated by the Governor in Council.

Marginal note:Financial year

(4) The Authority’s financial year begins on April 1 of one year and ends on March 31 of the following year, unless the Governor in Council directs otherwise.

Marginal note:Mandate

6. (1) The mandate of the Authority is to take actions, either directly or through a screening contractor, for the effective and efficient screening of persons who access aircraft or restricted areas through screening points, the property in their possession or control and the belongings or baggage that they give to an air carrier for transport. Restricted areas are those established under the Aeronautics Act at an aerodrome designated by the regulations or at any other place that the Minister may designate.

Marginal note:Other responsibilities

(2) The Authority is responsible for ensuring consistency in the delivery of screening across Canada and for any other air transport security function provided for in this Act. It is also responsible for air transport security functions that the Minister may assign to it, subject to any terms and conditions that the Minister may establish.

Marginal note:Carrying out mandate

(3) The Authority must carry out its responsibilities under this section in the public interest, having due regard to the interest of the travelling public. Those responsibilities are a governmental function.

Marginal note:Authorizing aerodrome operators to deliver screening

7. (1) The Authority may authorize the operator of an aerodrome designated by the regulations to deliver screening on its behalf at that aerodrome, either directly or through a screening contractor, subject to any terms and conditions that the Authority may establish.

Marginal note:Limitation

(2) The Authority may not authorize the operator to deliver screening unless it is satisfied that the operator can meet the terms and conditions established by the Authority and deliver screening efficiently and effectively, having regard to the following factors:

(a) the cost and service advantages;

(b) the operator’s capability to deliver screening; and

(c) how screening, if done by the operator, would be integrated with other security functions at the aerodrome.

Marginal note:Payments

(3) The Authority may, in the terms and conditions of an authorization, agree to make payments to the authorized aerodrome operator to compensate them for the reasonable costs incurred by them in delivering screening.

Marginal note:Not an agent of Her Majesty

(4) An authorized aerodrome operator does not become an agent of Her Majesty by reason only of delivering screening under an authorization.

Marginal note:Criteria for screening contractors and officers

8. (1) The Authority must establish criteria respecting the qualifications, training and performance of screening contractors and screening officers, that are as stringent as or more stringent than the standards established in the aviation security regulations made under the Aeronautics Act.

Marginal note:Certification

(2) The Authority must certify all screening contractors and officers against the criteria established under subsection (1).

Marginal note:Varying, suspending or cancelling certification

(3) If the Authority determines that a screening contractor or officer no longer meets the criteria in respect of which they were certified, the Authority may vary, suspend or cancel their certification.

Marginal note:Contracting

(4) The Authority may establish contracting policies specifying minimum requirements respecting wages and terms and conditions of employment that persons must meet in order to be awarded a contract by or on behalf of the Authority for the delivery of screening. The Authority must establish such policies if required to do so by the Minister.

Marginal note:Contracts for services or procurement

(5) The Authority must establish policies and procedures for contracts for services and for procurement that ensure that the Authority’s operational requirements are always met and that promote transparency, openness, fairness and value for money in purchasing.

LEGAL POWERS OF THE AUTHORITY

Marginal note:Legal powers

9. In carrying out its mandate, the Authority has, subject to this Act, the capacity, rights, powers and privileges of a natural person.

STRUCTURE OF THE AUTHORITY

Board

Marginal note:Establishment

10. (1) There shall be a board of directors of the Authority consisting of eleven directors, including the Chairperson, appointed by the Governor in Council on the recommendation of the Minister.

Marginal note:Directors nominated by airline industry and aerodrome operators

(2) Two of the directors must be nominees submitted by the representatives of the airline industry designated under section 11 whom the Minister considers suitable for appointment as directors, and two must be nominees submitted by the representatives of aerodrome operators designated under that section whom the Minister considers suitable for appointment as directors.

Marginal note:Tenure of directors

(3) Each director holds office during pleasure for any term of not more than five years that will ensure, as far as possible, the expiry in any one year of the terms of office of not more than one half of the directors.

Marginal note:Vacancy on board

(4) If the Governor in Council has not appointed all of the directors referred to in subsection (1) but the number appointed constitutes a quorum, the directors who have been appointed may exercise all the powers of the board.

Marginal note:Designation

11. The Minister may designate representatives or classes of representatives of the airline industry and of aerodrome operators to propose nominees to the Minister for appointment to the board.

Marginal note:Qualifications of directors

12. (1) The directors must be persons who, in the opinion of the Governor in Council, have the experience and the capacity required for discharging their duties and functions.

Marginal note:Persons not eligible for appointment

(2) No person may be appointed or continue as a director of the Authority who

(a) is not a Canadian citizen or a permanent resident under the Immigration and Refugee Protection Act;

(b) is a member of the Senate or House of Commons or a member of a legislature;

(c) is employed on a full-time basis in the public service of Canada or of a province; or

(d) is a mayor, councillor, officer or employee of a municipality.

Marginal note:Renewal of term

13. The Governor in Council may renew the term of office of any director for a maximum of one further term of not more than five years.

Marginal note:Part-time office

14. (1) The directors must carry out the duties and functions of their office on a part-time basis.

Marginal note:Directors’ fees

(2) The directors must be paid by the Authority the remuneration fixed by the Governor in Council for each day that they attend meetings of the board or any of its committees or perform other duties required of them as directors of the Authority.

Marginal note:Expenses

15. The directors are entitled to be paid reasonable travel and living expenses incurred by them in the course of performing their duties while absent from their ordinary place of residence.

Chairperson

Marginal note:Powers, duties and functions

16. The Chairperson must preside at meetings of the board and exercise any powers and perform any duties and functions that are assigned by the by-laws of the Authority.

Chief Executive Officer

Marginal note:Appointment and tenure

17. The board may appoint the chief executive officer of the Authority to hold office during pleasure for a term of not more than five years. The appointment of the chief executive officer is renewable for one or more subsequent terms of not more than five years.

Marginal note:Role of chief executive officer

18. The chief executive officer is responsible for the day-to-day management of the Authority.

Marginal note:Incapacity or vacancy

19. In the event of the absence or incapacity of, or vacancy in the office of, the chief executive officer, the board may appoint an employee of the Authority to exercise the powers and perform the duties and functions of the chief executive officer.

Marginal note:Exclusion

20. The chief executive officer may not be appointed as a director.

Marginal note:Full-time office

21. (1) The chief executive officer must carry out the duties and functions of his or her office on a full-time basis.

Marginal note:Remuneration

(2) The Authority must pay the chief executive officer the remuneration fixed by the Governor in Council.

Marginal note:Expenses

22. The chief executive officer is entitled to be paid reasonable travel and living expenses incurred in the course of performing his or her duties while absent from his or her ordinary place of work.

ROLE OF THE BOARD

Marginal note:Role of the board

23. The board is responsible for the management of the activities and affairs of the Authority.

Marginal note:By-laws

24. The board may make by-laws respecting the management and conduct of the activities and affairs of the Authority and the carrying out of the duties and functions of the board, including by-laws establishing

(a) a code of ethics for the directors, officers and employees of the Authority;

(b) committees of the board, including a human resources committee and an audit committee; and

(c) contracting policies for the Authority.

STAFF

Marginal note:Staff

25. The Authority may employ any officers, employees or agents and retain the services of any technical or professional advisers that it considers necessary for the proper conduct of its activities and affairs and may fix the terms and conditions of their engagement.

Marginal note:Accident compensation

26. The Chairperson, the chief executive officer and the directors, officers and employees of the Authority are deemed to be employees for the purposes of the Government Employees Compensation Act and to be employed in the public service of Canada for the purposes of any regulations made under section 9 of the Aeronautics Act.

Marginal note:Safety of the public

27. The provision of screening at an aerodrome is conclusively deemed for all purposes to be a service that is necessary to prevent immediate and serious danger to the safety of the public.

CONTRACTS, AGREEMENTS AND ARRANGEMENTS

Marginal note:Contracts with Her Majesty

28. (1) The Authority may enter into contracts, agreements or other arrangements with Her Majesty as if it were not an agent of Her Majesty.

Marginal note:Agreements

(2) The Authority may enter into agreements with Her Majesty represented by the Solicitor General of Canada or by the Royal Canadian Mounted Police for the provision of services, including services on aircraft, and may make payments in respect of those services.

Marginal note:Policing

29. The Authority may, with the approval of the Treasury Board, enter into agreements with designated airport authorities as defined in the Airport Transfer Miscellaneous Matters Act, for the purposes of contributing to the costs of policing incurred by that airport authority in carrying out its responsibilities.

Marginal note:Provision of space

30. Every operator of an aerodrome designated by the regulations must provide to the Authority, and maintain free of charge, such space at the aerodrome with services reasonably required by the Authority as the Authority and the operator agree on or, in the absence of agreement, such space at the aerodrome with services reasonably required by the Authority as the Minister determines to be necessary to enable the Authority to carry out its mandate.

AUDIT

Marginal note:Audit

31. The Auditor General of Canada is the auditor of the Authority.

SECURITY-RELATED INFORMATION

Marginal note:Protection of information

32. (1) Nothing in this Act, Part X of the Financial Administration Act or the Statutory Instruments Act shall be construed as requiring the tabling before either House of Parliament of any information the publication of which, in the opinion of the Minister, would be detrimental to air transport security or public security.

Marginal note:Requirement of confidentiality

(2) The Authority, authorized aerodrome operators and screening contractors must keep confidential any information the publication of which, in the opinion of the Minister, would be detrimental to air transport security or public security, including financial and other data that might reveal such information.

FIVE-YEAR REVIEW

Marginal note:Review of Act in five years

33. (1) A review of the provisions and the operation of this Act must be completed by the Minister during the fifth year after this section comes into force.

Marginal note:Tabling of report

(2) The Minister must cause a report of the results of the review to be laid before each House of Parliament on any of the first fifteen days on which that House is sitting after the report has been completed.

REGULATIONS

Marginal note:Regulations by Governor in Council

34. The Governor in Council may make regulations

(a) designating aerodromes for the purposes of this Act; and

(b) requiring the Authority to provide to the Minister such information as the Minister may request.

TRANSITIONAL PROVISIONS

Marginal note:Initial powers

35. Despite any other provision of this Act, pending the initial appointment of the directors, the Chairperson and any directors who have been appointed have all the powers of the board even if their number does not constitute a quorum.

Marginal note:Transfer of screening equipment

36. (1) The Governor in Council may require the Air Transport Security Corporation to transfer to the Authority, on such terms as the Governor in Council considers appropriate, good title in any or all screening equipment or other assets owned by the Corporation immediately before the coming into force of this section, free and clear of all liens and encumbrances, for such consideration as the Governor in Council may determine, having regard to the amount that the Corporation paid to acquire it as well as other relevant factors.

Marginal note:Other transfers to Authority

(2) The Governor in Council may require the Air Transport Security Corporation to transfer to the Authority, on such terms as the Governor in Council considers appropriate, any rights, titles, interests or obligations under any contract entered into by the Corporation that is specified by the Minister, despite any contractual restriction on the transfer of those rights, titles, interests or obligations.

Marginal note:Transfer to Authority from air carriers

(3) The Governor in Council may require air carriers to transfer to the Authority, on such terms as the Governor in Council considers appropriate, their rights, titles, interests or obligations under any contract respecting screening specified by the Minister, despite any contractual restriction on the transfer of those rights, titles, interests or obligations.

Marginal note:Transfer of contracts

(4) The transfer to the Authority of responsibility for any existing contracts under this section does not affect any rights, responsibilities or obligations acquired under the Canada Labour Code by the contractors, their employees or any trade union certified to represent those employees.

Marginal note:Transfer of screening equipment

(5) The Governor in Council may transfer to the Authority any screening equipment owned by Her Majesty, including explosive detection equipment, on such terms and conditions as the Governor in Council considers appropriate.

Marginal note:Transfer of Her Majesty’s rights, etc., under contract

(6) The Governor in Council may transfer to the Authority, on such terms as the Governor in Council considers appropriate, Her Majesty’s rights, titles, interests or obligations under any contract entered into by the Minister before the coming into force of this section respecting a subject-matter that is within the mandate of the Authority.

Marginal note:Acceptance of transfers

(7) The Authority must accept any transfer made under this section.

Marginal note:Appropriation

37. The amount of 340 million dollars is appropriated to the Minister from the Consolidated Revenue Fund for payment to the Authority for operating and capital expenditures incurred by it in the fiscal year 2002-2003 in carrying out its mandate, including payments made to authorized aerodrome operators and contributions made to designated airport authorities.

Marginal note:Agreements to continue delivering screening

38. The Authority may enter into an agreement with an air carrier in order to contribute to the costs of screening at an aerodrome designated by regulation, if the costs are incurred by the air carrier after the day on which this section comes into force and before the day on which the Authority is required under the Aeronautics Act to deliver that screening.

Marginal note:Financial documents

39. (1) Despite the period prescribed for submitting a corporate plan, an operating budget and a capital budget under the Financial Administration Act, the Authority must, within six months after the coming into force of this section, submit to the Minister in accordance with that Act a corporate plan, an operating budget and a capital budget for its first financial year.

Marginal note:Expenditure of funds

(2) Until the initial corporate plan, operating budget and capital budget for the Authority have been approved, the Authority may, despite sections 122 to 124 of the Financial Administration Act, expend funds, with the approval of the Minister, that the board considers to be essential for the Authority to become fully operational in a timely manner.

Consequential Amendment

R.S., c. F-11Financial Administration Act

3. Part I of Schedule III to the Financial Administration Act is amended by adding the following in alphabetical order:

Canadian Air Transport Security Authority

Administration canadienne de la sûreté du transport aérien

Coming into Force

Marginal note:Coming into force

4. Sections 2 and 3 or any provisions of the Act enacted by section 2 come into force on a day or days to be fixed by order of the Governor in Council.

PART 2 AIR SECURITY CHARGES

Air Travellers Security Charge Act

5. The Air Travellers Security Charge Act is enacted as follows:

An Act to implement an air travellers security charge
SHORT TITLE

Marginal note:Short title

1. This Act may be cited as the Air Travellers Security Charge Act.

INTERPRETATION

Marginal note:Definitions

2. The definitions in this section apply in this Act.

“accredited representative”

« représentant accrédité »

“accredited representative” means a person who is entitled under the Foreign Missions and International Organizations Act to the tax exemptions specified in Article 34 of the Convention set out in Schedule I to that Act or in Article 49 of the Convention set out in Schedule II to that Act.

“Agency”

« Agence »

“Agency” means the Canada Customs and Revenue Agency established by subsection 4(1) of the Canada Customs and Revenue Agency Act.

“air carrier”

« transporteur aérien »

“air carrier” means a person who carries on a business of transporting individuals by air.

“air transportation service”

« service de transport aérien »

“air transportation service” means all of the transportation of an individual by air, by one or more air carriers, included in a continuous journey of the individual.

“assessment”

« cotisation »

“assessment” means an assessment under this Act and includes a reassessment.

“bank”

« banque »

“bank” means a bank as defined in section 2 of the Bank Act or an authorized foreign bank, as defined in that section, that is not subject to the restrictions and requirements referred to in subsection 524(2) of that Act.

“charge”

« droit »

“charge”, except in the definition “security interest” and section 74, means a charge payable under section 11.

“chargeable emplanement”

« embarquement assujetti »

“chargeable emplanement” means an embarkation by an individual at a listed airport on an aircraft operated by a particular air carrier, except if

(a) the embarkation

(i) is for the purpose of transferring from a particular flight to a connecting flight and

(A) in the case of an air transportation service acquired in Canada, the particular flight included a chargeable emplanement by the individual,

(B) the individual embarked on the particular flight outside Canada, or

(C) the particular flight included an embarkation that, because of this subparagraph, is not a chargeable emplanement,

(ii) is a reboarding of the aircraft to resume a direct flight,

(iii) is a boarding of an aircraft that is being used to transport, on a direct flight, the individual to a destination in Canada that is not a listed airport, or

(iv) results from the provision of emergency or ground services to an aircraft or its occupants;

(b) the individual is

(i) an accredited representative,

(ii) an infant (other than an infant who has been issued a ticket that entitles the infant to occupy a seat for a part of the service that includes a chargeable emplanement),

(iii) an employee

(A) of the particular carrier, or of another air carrier that is a subsidiary wholly-owned corporation (in this subparagraph having the same meaning as in the Income Tax Act) of the particular carrier or of which the particular carrier is a subsidiary wholly-owned corporation, and

(B) whose embarkation is in the course of that employment,

or

(iv) a prescribed individual;

(c) the embarkation is

(i) on an aircraft whose maximum certified take-off weight does not exceed 2 730 kg,

(ii) on an aircraft referred to in subsection 56(1) of the Canada Transportation Act,

(iii) in the course of a service listed in, or prescribed under, subsection 56(2) of the Canada Transportation Act, or

(iv) in the course of an air ambulance service; or

(d) the embarkation is made in prescribed circumstances.

“Commissioner”

« commissaire »

“Commissioner” means the Commissioner of Customs and Revenue appointed under section 25 of the Canada Customs and Revenue Agency Act.

“continental zone”

« zone continentale »

“continental zone” means

(a) Canada;

(b) the United States (except Hawaii); and

(c) the Islands of St. Pierre and Miquelon.

“continuous journey”

« voyage continu »

“continuous journey” means a journey of an individual

(a) for which one ticket is issued; or

(b) for which two or more tickets are issued if

(i) there is no stopover between any of the legs of the journey for which separate tickets are issued,

(ii) all the tickets are issued by the same issuer or by two or more issuers through one agent acting on behalf of all such issuers, and

(iii) evidence satisfactory to the Minister that there is no stopover between any of the legs of the journey for which separate tickets are issued is

(A) maintained by the issuer or agent if the tickets are issued at the same time, or

(B) submitted by the issuer or agent if the tickets are issued at different times.

“data”

« données »

“data” means representations, in any form, of information or concepts.

“designated air carrier”

« transporteur aérien autorisé »

“designated air carrier” means an air carrier that is authorized by the Canadian Transportation Agency under Part II of the Canada Transportation Act to operate a domestic service or an international service, but does not include an air carrier that provides services that include only emplanements that are described in paragraph (c) or (d) of the definition “chargeable emplanement”.

“fiscal month”

« mois d’exercice »

“fiscal month” means a fiscal month as determined under section 16.

“Her Majesty”

« Sa Majesté »

“Her Majesty” means Her Majesty in right of Canada.

“judge”

« juge »

“judge”, in respect of any matter, means a judge of a superior court having jurisdiction in the province in which the matter arises or a judge of the Federal Court.

“listed airport”

« aéroport désigné »

“listed airport” means an airport listed in the schedule and a prescribed airport.

“Minister”

« ministre »

“Minister” means the Minister of National Revenue.

“month”

« mois »

“month” means a period beginning on a particular day in a calendar month and ending on

(a) the day immediately before the day in the next calendar month that has the same calendar number as the particular day; or

(b) if the next calendar month does not have a day that has the same calendar number as the particular day, the last day of that next calendar month.

“person”

« personne »

“person” means an individual, partnership, corporation, trust or estate, or a body that is a society, union, club, association, commission or other organization of any kind whatever.

“prescribed”

Marginal note:Version anglaise seulement

“prescribed” means

(a) in the case of a form or the manner of filing a form, authorized by the Minister;

(b) in the case of the information to be given on or with a form, specified by the Minister; and

(c) in any other case, prescribed by regulation or determined in accordance with rules prescribed by regulation.

“record”

« registre »

“record” means any material on which data are recorded or marked and which is capable of being read or understood by a person or a computer system or other device.

“secured creditor”

« créancier garanti »

“secured creditor” means

(a) a particular person who has a security interest in the property of another person; or

(b) a person who acts for or on behalf of the particular person with respect to the security interest and includes

(i) a trustee appointed under a trust deed relating to a security interest,

(ii) a receiver or receiver-manager appointed by the particular person or appointed by a court on the application of the particular person,

(iii) a sequestrator, or

(iv) any other person performing a function similar to that of a person referred to in any of subparagraphs (i) to (iii).

“security interest”

« garantie »

“security interest” means, for the purposes of the definition “secured creditor”, section 15 and subsection 75(3), any interest in property that secures payment or performance of an obligation and includes an interest created by or arising out of a debenture, mortgage, hypothec, lien, pledge, charge, deemed or actual trust, assignment or encumbrance of any kind whatever, however or whenever arising, created, deemed to arise or otherwise provided for.

“stopover”

« escale »

“stopover” means the disembarkation of an individual from an aircraft other than a disembarkation

(a) that is solely for the purpose of transferring to a connecting flight;

(b) that is in the course of a direct flight if the individual reboards the aircraft to resume the flight; or

(c) that results from the provision of emergency or ground services to an aircraft or its occupants.

“Tax Court”

« Cour de l’impôt »

“Tax Court” means the Tax Court of Canada.

Meaning of “administration or enforcement of this Act”

3. For greater certainty, a reference in this Act to “administration or enforcement of this Act” includes the collection of any amount payable under this Act.

Marginal note:Deemed issuance of ticket

4. If no ticket is issued for all or part of a journey, and it is reasonable to consider that a ticket would ordinarily be issued by a person for the journey or for that part, as the case may be, such a ticket is, except for the purposes of paragraph 11(2)(c), deemed to have been issued by the person.

Marginal note:Separate journeys deemed

5. A journey that would, if this Act were read without reference to this section, be a continuous journey of an individual that includes more than one chargeable emplanement by the individual at a particular listed airport is, despite any other provision of this Act, deemed

(a) not to be a continuous journey; and

(b) to be a series of separate continuous journeys each of which commences with the second and any subsequent chargeable emplanement from the particular listed airport.

APPLICATION

Marginal note:Binding on Her Majesty

6. This Act is binding on Her Majesty in right of Canada or a province.

Marginal note:Application to air transportation services

7. This Act applies in respect of

(a) the acquisition, on or before March 31, 2002, of an air transportation service for which any consideration is paid or becomes payable after March 31, 2002 and that includes a chargeable emplanement

(i) made after March 31, 2002, if the service is acquired in Canada, or

(ii) made after May 31, 2002, if the service is acquired outside Canada; and

(b) the acquisition after March 31, 2002 of an air transportation service that includes a chargeable emplanement

(i) made after March 31, 2002, if the service is acquired in Canada, or

(ii) made after May 31, 2002, if the service is acquired outside Canada.

ADMINISTRATION AND OFFICERS

Marginal note:Minister’s duty

8. The Minister shall administer and enforce this Act and the Commissioner may exercise the powers and perform the duties of the Minister under this Act.

Marginal note:Officers and employees

9. (1) The officers, employees and agents that are necessary to administer and enforce this Act shall be appointed, employed or engaged in the manner authorized by law.

Marginal note:Delegation of powers

(2) The Minister may authorize an officer or agent or a class of officers or agents to exercise powers or perform duties of the Minister, including any judicial or quasi-judicial power or duty of the Minister, under this Act.

Marginal note:Administration of oaths

10. Any officer, if designated by the Minister for the purpose, may administer oaths and take and receive affidavits, declarations and affirmations for the purposes of or incidental to the administration or enforcement of this Act, and every officer so designated has for those purposes all the powers of a commissioner for administering oaths or taking affidavits.

CHARGE PAYABLE

Marginal note:Charge payable

11. (1) Every person who acquires from a designated air carrier all or part of an air transportation service that includes a chargeable emplanement shall pay to Her Majesty a charge as determined under this Act in respect of the service.

Marginal note:When charge payable

(2) The charge in respect of the air transportation service is payable

(a) if any consideration is paid or payable for the service, at the time any consideration for the service is first paid or becomes payable;

(b) if no consideration is paid or payable for the service, at the time a ticket is issued for the service; or

(c) if no consideration is paid or payable for the service and no ticket is issued for the service, at the time of emplanement.

Marginal note:Amount of charge if service acquired in Canada

12. (1) Subject to subsection (3), if an air transportation service is acquired in Canada, the amount of the charge in respect of the service is

(a) $11.22 for each chargeable emplanement included in the service, to a maximum of $22.43, if

(i) the service does not include transportation to a destination outside the continental zone, and

(ii) tax under subsection 165(1) of the Excise Tax Act is required to be paid in respect of the service;

(b) $12.00 for each chargeable emplanement included in the service, to a maximum of $24.00, if

(i) the service does not include transportation to a destination outside the continental zone, and

(ii) tax under subsection 165(1) of the Excise Tax Act is not required to be paid in respect of the service; or

(c) $24.00, if the service includes transportation to a destination outside the continental zone.

Marginal note:Amount of charge if service acquired outside Canada

(2) Subject to subsection (3), if an air transportation service is acquired outside Canada, the amount of the charge in respect of the service is

(a) $11.22 for each chargeable emplanement by an individual on an aircraft used to transport the individual to a destination outside Canada but within the continental zone, to a maximum of $22.43, if

(i) the service does not include transportation to a destination outside the continental zone, and

(ii) tax under subsection 165(1) of the Excise Tax Act is required to be paid in respect of the service;

(b) $12.00 for each chargeable emplanement by an individual on an aircraft used to transport the individual to a destination outside Canada but within the continental zone, to a maximum of $24.00, if

(i) the service does not include transportation to a destination outside the continental zone, and

(ii) tax under subsection 165(1) of the Excise Tax Act is not required to be paid in respect of the service; or

(c) $24.00, if the service includes transportation to a destination outside the continental zone.

Marginal note:Prescribed amount of charge

(3) The amount of the charge in respect of a prescribed air transportation service is the lesser of

(a) the amount that is determined in respect of the service under subsection (1) or (2), as the case may be, and

(b) the amount that is prescribed, or determined in accordance with prescribed rules, in respect of the service.

Marginal note:Air transportation service deemed to be acquired in Canada

13. (1) An air transportation service that is acquired outside Canada is deemed to have been acquired in Canada and not outside Canada if any consideration for the service is paid

(a) by transmission from within Canada to a place outside Canada, by mail or electronic means, of cash, a cheque, a money order, a credit or debit card payment or any similar means of payment, to a ticket office, travel agency or air carrier or any representative of any of them;

(b) by delivery of an amount to an agency located within Canada for transmission to a ticket office, travel agency, air carrier or any representative of any of them located outside Canada; or

(c) by any other arrangement with a person outside Canada for the benefit or convenience of a person who is resident in Canada.

Marginal note:Charter flights

(2) If an air transportation service that begins in Canada is acquired outside Canada by a person in the course of a charter operation, the service is deemed to have been acquired in Canada and not outside Canada.

COLLECTION OF CHARGE

Marginal note:Duty of designated air carrier to collect charge

14. (1) Subject to subsections (2) and (3), every designated air carrier from whom all or part of an air transportation service is acquired by a person who is required by this Act to pay a charge in respect of that service shall, as an agent of Her Majesty, collect the charge not later than the time the charge becomes payable by the person.

Marginal note:Multiple carriers — service acquired in Canada

(2) If an air transportation service acquired in Canada is comprised of transportation of an individual by air by two or more designated air carriers, any charge that is payable in respect of the service shall be collected

(a) if all of the tickets for the service are issued by a designated air carrier, by that carrier; or

(b) in any other case, by the designated air carrier operating the aircraft on which the individual first makes a chargeable emplanement.

Marginal note:Issuing carrier deemed to be supplier of service

(3) If a ticket for an air transportation service acquired in Canada is issued to a person by a designated air carrier that does not provide any part of the air transportation service, the air transportation service is deemed to have been acquired by the person from that designated air carrier.

Marginal note:Multiple carriers — service acquired outside Canada

(4) If an air transportation service acquired outside Canada is comprised of transportation of an individual by air by two or more designated air carriers, any charge that is payable in respect of the service shall be collected by the designated air carrier operating the first aircraft that transports the individual to a destination outside Canada and on which the individual makes a chargeable emplanement included in the service.

Marginal note:Joint and several or solidary liability

(5) If a designated air carrier issues a ticket and accepts consideration on behalf of another designated air carrier for an air transportation service acquired outside Canada in respect of which the other carrier is required to collect a charge, those carriers are jointly and severally or solidarily liable for all obligations under this Act arising from, or as a consequence of, the acquisition of the service or any failure to collect or pay the charge.

Marginal note:Trust for amounts collected

15. (1) Every person who collects an amount as or on account of a charge is deemed, for all purposes and despite any security interest (other than a prescribed security interest) in the amount, to hold the amount in trust for Her Majesty, separate and apart from the property of the person and from property held by any secured creditor of the person that, but for a security interest, would be property of the person, until the amount is paid to the Receiver General or withdrawn under subsection (3).

Marginal note:Amounts collected before bankruptcy

(2) Subsection (1) does not apply, at or after the time a person becomes a bankrupt (within the meaning of the Bankruptcy and Insolvency Act), to any amounts that, before that time, were collected or became collectible by the person as or on account of a charge.

Marginal note:Withdrawal from trust

(3) A person who holds amounts in trust by reason of subsection (1) may withdraw from the amounts any amount refunded by the person under section 32.

Marginal note:Extension of trust

(4) Despite any other provision of this Act, any other enactment of Canada (except the Bankruptcy and Insolvency Act), any enactment of a province or any other law, if at any time an amount deemed by subsection (1) to be held by a person in trust for Her Majesty is not remitted to the Receiver General or withdrawn in the manner and at the time provided under this Part, property of the person and property held by any secured creditor of the person that, but for a security interest, would be property of the person, equal in value to the amount so deemed to be held in trust, is deemed

(a) to be held, from the time the amount was collected by the person, in trust for Her Majesty, separate and apart from the property of the person, whether or not the property is subject to a security interest, and

(b) to form no part of the estate or property of the person from the time the amount was collected, whether or not the property has in fact been kept separate and apart from the estate or property of the person and whether or not the property is subject to a security interest

and is property beneficially owned by Her Majesty despite any security interest in the property or in the proceeds thereof, and the proceeds of the property shall be paid to the Receiver General in priority to all security interests.

GENERAL PROVISIONS CONCERNING CHARGES AND OTHER AMOUNTS PAYABLE

Fiscal Month

Marginal note:Determination of fiscal months

16. The fiscal months of a designated air carrier shall be determined in accordance with the following rules:

(a) if fiscal months of the carrier have been determined under subsection 243(2) or (4) of the Excise Tax Act for the purposes of Part IX of that Act, each of those fiscal months is a fiscal month of the carrier for the purposes of this Act;

(b) if fiscal months of the carrier have not been determined under subsection 243(2) or (4) of the Excise Tax Act for the purposes of Part IX of that Act, the carrier may choose, at the time of registration under section 17, as their fiscal months for the purposes of this Act, fiscal months that meet the requirements set out in subsection 243(2) of the Excise Tax Act; and

(c) if paragraph (a) does not apply and the carrier has not chosen their fiscal months under paragraph (b), each calendar month is a fiscal month of the carrier for the purposes of this Act.

Returns and Payments of Charges and Other Amounts

Marginal note:Registration

17. (1) Every designated air carrier that is required to collect a charge shall register with the Minister in the prescribed form and manner before the end of the first fiscal month in which the carrier collects or is required to collect charges.

Marginal note:Returns and payments

(2) Every designated air carrier that is registered or is required to register shall, not later than the last day of the first month after each fiscal month of the carrier,

(a) file a return with the Minister, in the prescribed form and manner containing all prescribed information, for that fiscal month;

(b) calculate, in the return, the total of

(i) all charges required to be collected by the carrier during that fiscal month other than such a charge that was collected by the carrier before that fiscal month,

(ii) all amounts each of which is a charge collected by the carrier during that fiscal month at a time before the charge became payable under subsection 11(2) if the time at which the charge becomes so payable is after the end of that fiscal month, and

(iii) all other amounts collected as or on account of charges by the carrier during that fiscal month that were not included in a calculation under subparagraph (i) or (ii) for a previous fiscal month; and

(c) pay an amount equal to that total to the Receiver General.

Marginal note:Amount collected as charge by person not required to collect

18. Every person who collects an amount as or on account of a charge and who is not required to pay it to the Receiver General under subsection 17(2) shall, without delay, pay that amount to the Receiver General and report the matter to the Minister in the prescribed form and manner.

Marginal note:Set-off of refunds

19. If, at any time, a designated air carrier files a return under section 17 in which the carrier reports an amount that is required to be paid under this Act by it and the carrier claims a refund payable to it under this Act at that time, in the return or in another return, or in a separate application filed under this Act with the return, the carrier is deemed to have paid at that time, and the Minister is deemed to have refunded at that time, an amount equal to the lesser of the amount required to be paid and the amount of the refund.

Marginal note:Large payments

20. Every person who is required under this Act to pay an amount to the Receiver General shall, if the amount is $50,000 or more, make the payment to the account of the Receiver General at

(a) a bank;

(b) a credit union;

(c) a corporation authorized under the laws of Canada or a province to carry on the business of offering its services as a trustee to the public; or

(d) a corporation authorized under the laws of Canada or a province to accept deposits from the public and that carries on the business of lending money on the security of real property or immovables or investing in mortgages on real property or hypothecs on immovables.

Marginal note:Small amounts owing

21. (1) If, at any time, the total of all unpaid amounts owing by a designated air carrier to the Receiver General under this Act does not exceed $2.00, the amount owing by the carrier is deemed to be nil.

Marginal note:Small amounts payable

(2) If, at any time, the total of all amounts payable by the Minister to a designated air carrier under this Act does not exceed $2.00, the Minister is not required to pay any of the amounts payable. The Minister may apply those amounts against a liability of the carrier.

Marginal note:Authority for separate returns

22. (1) A designated air carrier that engages in one or more activities in separate branches or divisions may file an application, in the prescribed form and manner, with the Minister for authority to file separate returns and applications for refunds under this Act in respect of a branch or division specified in the application.

Marginal note:Authorization by Minister

(2) On receipt of the application, the Minister may, in writing, authorize the designated air carrier to file separate returns and applications for refunds in relation to the specified branch or division, subject to any conditions that the Minister may at any time impose, if the Minister is satisfied that

(a) the branch or division can be separately identified by reference to the location of the branch or division or the nature of the activities engaged in by it; and

(b) separate records, books of account and accounting systems are maintained in respect of the branch or division.

Marginal note:Revocation of authorization

(3) The Minister may revoke an authorization if

(a) the designated air carrier, in writing, requests the Minister to revoke the authorization;

(b) the designated air carrier fails to comply with any condition imposed in respect of the authorization or any provision of this Act;

(c) the Minister is no longer satisfied that the requirements of subsection (2) in respect of the designated air carrier are met; or

(d) the Minister considers that the authorization is no longer required.

Marginal note:Notice of revocation

(4) If the Minister revokes an authorization, the Minister shall send a notice in writing of the revocation to the designated air carrier and shall specify in the notice the effective date of the revocation.

Meaning of “electronic filing”

23. (1) For the purposes of this section, “electronic filing” means using electronic media in a manner specified in writing by the Minister.

Marginal note:Electronic filing of return

(2) A designated air carrier that is required to file with the Minister a return under this Act, and that meets the criteria specified in writing by the Minister for the purposes of this section, may file the return by way of electronic filing.

Marginal note:Deemed filing

(3) For the purposes of this Act, if a designated air carrier files a return by way of electronic filing, the return is deemed to be a return in the prescribed form filed with the Minister on the day the Minister acknowledges acceptance of it.

Marginal note:Execution of returns, etc.

24. A return (other than a return filed by way of electronic filing under section 23) or other document made under this Act by a person that is not an individual shall be signed on behalf of the person by an individual duly authorized to do so by the person or the governing body of the person. If the person is a corporation or an association or organization that has duly elected or appointed officers, the president, vice-president, secretary and treasurer, or other equivalent officers, of the corporation, association or organization, are deemed to be so duly authorized.

Marginal note:Extension of time

25. The Minister may at any time extend, in writing, the time for filing a return or providing information under this Act.

Marginal note:Demand for return

26. The Minister may, by a demand served personally or by registered or certified mail, require a designated air carrier to file, within any reasonable time that may be stipulated in the demand, a return under this Act for any period that may be designated in the demand.

Interest

Marginal note:Compound interest on amounts not paid when required

27. (1) If a person fails to pay an amount, other than an amount of penalty under subsection 53(1), to the Receiver General as and when required under this Act, the person shall pay to the Receiver General interest on the amount. The interest shall be compounded daily at the prescribed rate and computed for the period that begins on the first day after the day on or before which the amount was required to be paid and that ends on the day the amount is paid.

Marginal note:Payment of interest that is compounded

(2) For the purposes of subsection (1), interest that is compounded on a particular day on an unpaid amount of a person is deemed to be required to be paid by the person to the Receiver General at the end of the particular day, and, if the person has not paid the interest so computed by the end of the day after the particular day, the interest shall be added to the unpaid amount at the end of the particular day.

Marginal note:Compound interest on amounts owed by Her Majesty

28. Interest shall be compounded daily at the prescribed rate on amounts owed by Her Majesty to a person and computed for the period beginning on the first day after the day on which the amount is required to be paid by Her Majesty and ending on the day on which the amount is paid or is applied against an amount owed by the person to Her Majesty.

Marginal note:Application of interest provisions if Act amended

29. For greater certainty, if a provision of an Act amends this Act and provides that the amendment comes into force on, or applies as of, a particular day that is before the day on which the provision is assented to, the provisions of this Act that relate to the calculation and payment of interest apply in respect of the amendment as though the provision had been assented to on the particular day.

Marginal note:Waiving or reducing interest

30. The Minister may at any time waive or reduce any interest payable by a person under this Act.

Refunds

Marginal note:Statutory recovery rights

31. Except as specifically provided under this Act or the Financial Administration Act, no person has a right to recover any money paid to Her Majesty as or on account of, or that has been taken into account by Her Majesty as, an amount payable under this Act.

Marginal note:Refund of charge if service not provided

32. (1) A designated air carrier may refund or credit an amount to a person if

(a) the carrier collected the amount from the person as or on account of a charge in respect of an air transportation service acquired by the person;

(b) the person was required by this Act to pay a charge in respect of the service; and

(c) the service

(i) was not used by any person before all rights to be provided the transportation by air included in the service expired, or

(ii) was used only partially before all rights to be provided the transportation by air included in the service expired if the part that was used would not, by itself, be subject to a charge.

Marginal note:Refund of charge collected in error

(2) A designated air carrier that has collected from a person an amount as or on account of a charge in excess of the charge that was collectible by the carrier from the person may refund or credit the excess to that person.

Marginal note:Issuance of document evidencing refund

(3) A designated air carrier that refunds or credits an amount to a person in accordance with subsection (1) or (2) within two years after the day the amount was collected shall, within a reasonable time, issue to the person a document containing information specified by the Minister.

Marginal note:Deduction of refund

(4) A designated air carrier that has refunded or credited an amount under subsection (1) or (2) within two years after the day the amount was collected and that has issued to a person a document in accordance with subsection (3) may deduct the amount of the refund or credit from the amount payable by the carrier under subsection 17(2) for the fiscal month of the carrier in which the document is issued to the person, to the extent that the amount of the charge has been included by the carrier in determining the amount payable by the carrier under subsection 17(2) for the fiscal month or a preceding fiscal month of the carrier.

Marginal note:Payment in error

33. (1) The Minister may pay a refund to a person

(a) if the person paid an amount in excess of the amount that was payable by that person under this Act; or

(b) if the person has paid to a designated air carrier an amount as or on account of a charge

(i) in respect of an air transportation service that was not used by any person before all rights to be provided the transportation by air included in the service expired, or

(ii) in respect of an air transportation service that was used only partially before all rights to be provided the transportation by air included in the service expired if the part that was used would not, by itself, be subject to a charge.

Marginal note:Amount of refund

(2) The amount of a refund payable by the Minister is, if paragraph (1)(a) applies, the amount of the excess referred to in that paragraph and, if paragraph (1)(b) applies, the amount paid as or on account of the charge.

Marginal note:Restriction

(3) A refund under this section in respect of an amount shall not be paid to a person to the extent that

(a) the amount was taken into account as an amount required to be paid by the person in respect of one of their fiscal months and the Minister has assessed the person for the month under section 39; or

(b) the amount was an amount assessed under section 39.

Marginal note:Application for refund

(4) A refund of an amount shall not be paid to a person unless the person files with the Minister an application for the refund in the prescribed form and manner within two years after the person paid the amount.

Marginal note:Restriction on refunds, etc.

34. (1) A refund of an amount under this Act shall not be paid to a person to the extent that it can reasonably be regarded that

(a) the amount has previously been refunded, remitted, applied or paid to that person under this or any other Act of Parliament;

(b) the person has applied for a refund, payment or remission of the amount under any other Act of Parliament; or

(c) the amount has been or will be refunded to the person under section 32.

Marginal note:Single application

(2) Only one application may be made under this Act for a refund with respect to any matter.

Marginal note:Restriction re trustees

35. If a trustee is appointed under the Bankruptcy and Insolvency Act to act in the administration of the estate of a bankrupt, a refund under this Act that the bankrupt was entitled to claim before the appointment shall not be paid after the appointment unless all returns required under this Act to be filed for fiscal months of the bankrupt ending before the appointment have been filed and all amounts required under this Act to be paid by the bankrupt in respect of those fiscal months have been paid.

Marginal note:Overpayment of refunds, etc.

36. (1) If an amount is paid to, or applied to a liability of, a person as a refund under this Act and the person is not entitled to the amount or the amount paid or applied exceeds the refund or other payment to which the person is entitled, the person shall pay to the Receiver General an amount equal to the refund, payment or excess on the day the amount is paid to, or applied to a liability of, the person.

Marginal note:Effect of reduction of refund, etc.

(2) For the purpose of subsection (1), if a refund or other payment has been paid to a person in excess of the amount to which the person was entitled and the amount of the excess has, by reason of section 34, reduced the amount of any other refund or other payment to which the person would, but for the payment of the excess, be entitled, the person is deemed to have paid the amount of the reduction to the Receiver General.

Records and Information

Marginal note:Keeping records

37. (1) Every person who collects or is required to collect a charge shall keep all records that are necessary to determine whether they have complied with this Act.

Marginal note:Minister may specify information

(2) The Minister may specify in writing the form a record is to take and any information that the record must contain.

Marginal note:Language and location of record

(3) Unless otherwise authorized by the Minister, a record shall be kept in Canada in English or French.

Marginal note:Electronic records

(4) Every person required under this Act to keep a record who does so electronically shall ensure that all equipment and software necessary to make the record intelligible are available during the retention period required for the record.

Marginal note:Inadequate records

(5) If a person fails to keep adequate records for the purposes of this Act, the Minister may, in writing, require the person to keep any records that the Minister may specify, and the person shall keep the records specified by the Minister.

Marginal note:General period for retention

(6) Every person who is required to keep records shall retain them until the expiry of six years after the end of the year to which they relate or for any other period that may be prescribed.

Marginal note:Objection or appeal

(7) If a person who is required under this Act to keep records serves a notice of objection or is a party to an appeal or reference under this Act, the person shall retain every record that pertains to the subject-matter of the objection, appeal or reference until the objection, appeal or reference is finally disposed of.

Marginal note:Demand by Minister

(8) If the Minister is of the opinion that it is necessary for the administration or enforcement of this Act, the Minister may, by a demand served personally or by registered or certified mail, require any person required under this Act to keep records to retain those records for any period that is specified in the demand, and the person shall comply with the demand.

Marginal note:Permission for earlier disposal

(9) A person who is required under this Act to keep records may dispose of them before the expiry of the period during which they are required to be kept if written permission for their disposal is given by the Minister.

Marginal note:Requirement to provide information

38. (1) Despite any other provision of this Act, the Minister may, by a notice served personally or by registered or certified mail, require a person resident in Canada or a person who is not resident in Canada but who carries on business in Canada to provide any information or record.

Marginal note:Notice

(2) The notice shall set out

(a) a reasonable period of not less than 90 days for the provision of the information or record;

(b) a description of the information or record being sought; and

(c) the consequences under subsection (7) to the person of any failure to provide the information or record being sought within the period set out in the notice.

Marginal note:Review of information requirement

(3) The person on whom a notice of a requirement is served may, within 90 days after the service of the notice, apply to a judge for a review of the requirement.

Marginal note:Powers on review

(4) On hearing an application in respect of a requirement, a judge may

(a) confirm the requirement;

(b) vary the requirement if satisfied that it is appropriate in the circumstances to do so; or

(c) set aside the requirement if satisfied that it is unreasonable.

Marginal note:Requirement not unreasonable

(5) For the purposes of subsection (4), a requirement to provide information or a record shall not be considered to be unreasonable solely because the information or record is under the control of or available to a person who is not resident in Canada, if that person is related, for the purposes of the Income Tax Act, to the person served with the notice of the requirement.

Marginal note:Time during consideration not to count

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

(a) the period set out in the notice of the requirement; or

(b) the period within which an assessment may be made under section 42.

Marginal note:Consequence of failure

(7) If a person fails to comply substantially with a notice served under subsection (1) and the notice is not set aside under subsection (4), any court having jurisdiction in a civil proceeding relating to the administration or enforcement of this Act shall, on the motion of the Minister, prohibit the introduction by that person of any information or record described in that notice.

Assessments

Marginal note:Assessment

39. (1) The Minister may assess a person for any charge or other amount payable by the person under this Act and may, despite any previous assessment covering, in whole or in part, the same matter, vary the assessment, reassess the person assessed or make any additional assessments that the circumstances require.

Marginal note:Liability not affected

(2) The liability of a person to pay an amount under this Act is not affected by an incorrect or incomplete assessment or by the fact that no assessment has been made.

Marginal note:Minister not bound

(3) The Minister is not bound by any return, application or information provided by or on behalf of any person and may make an assessment despite any return, application or information provided or not provided.

Marginal note:Refund on reassessment

(4) If a person has paid an amount assessed under this section in respect of a fiscal month and the amount paid exceeds the amount determined on reassessment to have been payable by the person in respect of that fiscal month, the Minister shall refund to the person the amount of the excess and, for the purpose of section 28, the refund is deemed to have been required to be paid on the day on which the amount was paid to the Minister.

Marginal note:Determination of refunds

(5) In making an assessment, the Minister may take into account any refund payable to the person being assessed under this Act. If the Minister does so, the person is deemed to have applied for the refund under this Act on the day the notice of assessment is sent.

Marginal note:Assessment of refund

40. (1) On receipt of an application made by a person for a refund under this Act, the Minister shall, without delay, consider the application and assess the amount of the refund, if any, payable to the person.

Marginal note:Reassessment

(2) The Minister may reassess or make an additional assessment of the amount of a refund despite any previous assessment of the amount of the refund.

Marginal note:Payment

(3) If on assessment under this section the Minister determines that a refund is payable to a person, the Minister shall pay the refund to the person.

Marginal note:Restriction

(4) A refund shall not be paid until the person has filed with the Minister all returns or other records that are required to be filed under this Act.

Marginal note:Interest

(5) If a refund is paid to a person, the Minister shall pay interest at the prescribed rate to the person on the refund for the period beginning on the day that is 30 days after the day on which the application for the refund is filed with the Minister and ending on the day on which the refund is paid.

Marginal note:Notice of assessment

41. (1) After making an assessment under this Act, the Minister shall send to the person assessed a notice of the assessment.

Marginal note:Payment of remainder

(2) If the Minister has assessed a person for an amount, any portion of that amount then remaining unpaid is payable to the Receiver General as of the date of the notice of assessment.

Marginal note:Limitation period for assessments

42. (1) Subject to subsections (2) to (4), no assessment in respect of any charge or other amount payable by a person under this Act shall be made more than four years after it became payable by the person under this Act.

Marginal note:Exception where objection or appeal

(2) A variation of an assessment, or a reassessment, in respect of any charge or other amount payable under this Act by a person may be made at any time if the variation or reassessment is made

(a) to give effect to a decision on an objection or appeal; or

(b) with the written consent of an appellant to dispose of an appeal.

Marginal note:Exception where neglect or fraud

(3) An assessment in respect of any matter may be made at any time if the person to be assessed has, in respect of that matter,

(a) made a misrepresentation that is attributable to their neglect, carelessness or wilful default; or

(b) committed fraud with respect to a return or an application for a refund filed under this Act.

Marginal note:Exception where waiver

(4) An assessment in respect of any matter specified in a waiver filed under subsection (5) may be made at any time within the period specified in the waiver unless the waiver has been revoked under subsection (6), in which case an assessment may be made at any time during the six months that the waiver remains in effect.

Marginal note:Filing waiver

(5) Any person may, within the time otherwise limited by subsection (1) for an assessment, waive the application of that subsection by filing with the Minister a waiver in the prescribed form specifying the period for which, and the matter in respect of which, the person waives the application of that subsection.

Marginal note:Revoking waiver

(6) Any person who has filed a waiver may revoke it by filing with the Minister a notice of revocation of the waiver in the prescribed form and manner. The waiver remains in effect for six months after the notice is filed.

Objections to Assessment

Marginal note:Objection to assessment

43. (1) Any person who has been assessed and who objects to the assessment may, within 90 days after the date of the notice of the assessment, file with the Minister a notice of objection in the prescribed form and manner setting out the reasons for the objection and all relevant facts.

Marginal note:Issue to be decided

(2) A notice of objection shall

(a) reasonably describe each issue to be decided;

(b) specify in respect of each issue the relief sought, expressed as the change in any amount that is relevant for the purposes of the assessment; and

(c) provide the facts and reasons relied on by the person in respect of each issue.

Marginal note:Late compliance

(3) Despite subsection (2), if a notice of objection does not include the information required under paragraph (2)(b) or (c) in respect of an issue to be decided that is described in the notice, the Minister may, in writing, request the person to provide the information, and that paragraph is deemed to be complied with in respect of the issue if, within 60 days after the request is made, the person submits the information in writing to the Minister.

Marginal note:Limitation on objections

(4) Despite subsection (1), if a person has filed a notice of objection to an assessment (in this subsection referred to as the “earlier assessment”) and the Minister makes a particular assessment under subsection (8) as a result of the notice of objection, unless the earlier assessment was made in accordance with an order of a court vacating, varying or restoring an assessment or referring an assessment back to the Minister for reconsideration and reassessment, the person may object to the particular assessment in respect of an issue

(a) only if the person complied with subsection (2) in the notice with respect to that issue; and

(b) only with respect to the relief sought in respect of that issue as specified by the person in the notice.

Marginal note:Application of subsection (4)

(5) Subsection (4) does not limit the right of the person to object to the particular assessment in respect of an issue that was part of the particular assessment and not part of the earlier assessment.

Marginal note:Limitation on objections

(6) Despite subsection (1), no objection may be made by a person in respect of an issue for which the right of objection has been waived in writing by the person.

Marginal note:Acceptance of objection

(7) The Minister may accept a notice of objection even though it was not filed in the prescribed form and manner.

Marginal note:Consideration of objection

(8) On receipt of a notice of objection, the Minister shall, without delay, reconsider the assessment and vacate or confirm it or make a reassessment.

Marginal note:Waiving reconsideration

(9) If, in a notice of objection, a person who wishes to appeal directly to the Tax Court requests the Minister not to reconsider the assessment objected to, the Minister may confirm the assessment without reconsideration.

Marginal note:Notice of decision

(10) After reconsidering an assessment under subsection (8) or confirming an assessment under subsection (9), the Minister shall notify the person objecting to the assessment of the Minister’s decision by registered or certified mail.

Marginal note:Extension of time by Minister

44. (1) If no objection to an assessment is filed under section 43 within the time limited under this Act, a person may make an application to the Minister to extend the time for filing a notice of objection and the Minister may grant the application.

Marginal note:Contents of application

(2) An application must set out the reasons why the notice of objection was not filed within the time limited under this Act for doing so.

Marginal note:How application made

(3) An application must be made by delivering or mailing, to the Chief of Appeals in a Tax Services Office or Taxation Centre of the Agency, the application accompanied by a copy of the notice of objection.

Marginal note:Defect in application

(4) The Minister may accept an application even though it was not made in accordance with subsection (3).

Marginal note:Duties of Minister

(5) On receipt of an application, the Minister shall, without delay, consider the application and grant or refuse it, and shall notify the person of the decision by registered or certified mail.

Marginal note:Date of objection if application granted

(6) If an application is granted, the notice of objection is deemed to have been filed on the day of the decision of the Minister.

Marginal note:Conditions — grant of application

(7) No application shall be granted under this section unless

(a) the application is made within one year after the expiry of the time limited under this Act for objecting; and

(b) the person demonstrates that

(i) within the time limited under this Act for objecting, the person

(A) was unable to act or to give a mandate to act in their name, and

(B) had a bona fide intention to object to the assessment,

(ii) given the reasons set out in the application and the circumstances of the case, it would be just and equitable to grant the application, and

(iii) the application was made as soon as circumstances permitted it to be made.

Appeal

Marginal note:Extension of time by Tax Court

45. (1) A person who has made an application under section 44 may apply to the Tax Court to have the application granted after either

(a) the Minister has refused the application; or

(b) 90 days have elapsed after the application was made and the Minister has not notified the person of the Minister’s decision.

Marginal note:When application may not be made

(2) No application may be made after the expiry of 30 days after the decision referred to in subsection 44(5) was mailed to the person.

Marginal note:How application made

(3) An application must be made by filing in the Registry of the Tax Court, in accordance with the Tax Court of Canada Act, three copies of the documents delivered or mailed under subsection 44(3).

Marginal note:Copy to the Commissioner

(4) The Tax Court must send a copy of the application to the Commissioner.

Marginal note:Powers of Tax Court

(5) The Tax Court may dispose of an application by dismissing or granting it and, in granting it, the Court may impose any terms that it considers just or order that the notice of objection be deemed to be a valid objection as of the date of the order.

Marginal note:When application to be granted

(6) No application shall be granted under this section unless

(a) the application under subsection 44(1) was made within one year after the expiry of the time limited under this Act for objecting; and

(b) the person demonstrates that

(i) within the time limited under this Act for objecting, the person

(A) was unable to act or to give a mandate to act in their name, and

(B) had a bona fide intention to object to the assessment,

(ii) given the reasons set out in the application under this section and the circumstances of the case, it would be just and equitable to grant the application, and

(iii) the application under subsection 44(1) was made as soon as circumstances permitted it to be made.

Marginal note:Appeal to Tax Court

46. (1) Subject to subsection (2), a person who has filed a notice of objection to an assessment may appeal to the Tax Court to have the assessment vacated or a reassessment made after

(a) the Minister has confirmed the assessment or has reassessed; or

(b) 180 days have elapsed after the filing of the notice of objection and the Minister has not notified the person that the Minister has vacated or confirmed the assessment or has reassessed.

Marginal note:No appeal

(2) No appeal under subsection (1) may be instituted after the expiry of 90 days after notice that the Minister has reassessed or confirmed the assessment is sent to the person under subsection 43(10).

Marginal note:Amendment of appeal

(3) The Tax Court may, on any terms that it sees fit, authorize a person who has instituted an appeal in respect of a matter to amend the appeal to include any further assessment in respect of the matter that the person is entitled under this section to appeal.

Marginal note:Extension of time to appeal

47. (1) If no appeal to the Tax Court under section 46 has been instituted within the time limited by that section for doing so, a person may make an application to the Tax Court for an order extending the time within which an appeal may be instituted, and the Court may make an order extending the time for appealing and may impose any terms that it considers just.

Marginal note:Contents of application

(2) An application must set out the reasons why the appeal was not instituted within the time limited under section 46 for doing so.

Marginal note:How application made

(3) An application must be made by filing in the Registry of the Tax Court, in accordance with the Tax Court of Canada Act, three copies of the application together with three copies of the notice of appeal.

Marginal note:Copy to Deputy Attorney General of Canada

(4) The Tax Court must send a copy of the application to the office of the Deputy Attorney General of Canada.

Marginal note:When order to be made

(5) No order shall be made under this section unless

(a) the application is made within one year after the expiry of the time limited under section 46 for appealing; and

(b) the person demonstrates that

(i) within the time limited under section 46 for appealing, the person

(A) was unable to act or to give a mandate to act in their name, and

(B) had a bona fide intention to appeal,

(ii) given the reasons set out in the application and the circumstances of the case, it would be just and equitable to grant the application,

(iii) the application was made as soon as circumstances permitted it to be made, and

(iv) there are reasonable grounds for the appeal.

Marginal note:Limitation on appeals to the Tax Court

48. (1) Despite section 46, if a person has filed a notice of objection to an assessment, the person may appeal to the Tax Court to have the assessment vacated, or a reassessment made, only with respect to

(a) an issue in respect of which the person has complied with subsection 43(2) in the notice and the relief sought in respect of the issue as specified by the person in the notice; or

(b) an issue described in subsection 43(5) if the person was not required to file a notice of objection to the assessment that gave rise to the issue.

Marginal note:No appeal if waiver

(2) Despite section 46, a person may not appeal to the Tax Court to have an assessment vacated or varied in respect of an issue for which the right of objection or appeal has been waived in writing by the person.

Marginal note:Institution of appeals

49. An appeal to the Tax Court under this Act shall be instituted in accordance with the Tax Court of Canada Act.

Marginal note:Disposition of appeal

50. The Tax Court may dispose of an appeal from an assessment by

(a) dismissing it; or

(b) allowing it and

(i) vacating the assessment, or

(ii) referring the assessment back to the Minister for reconsideration and reassessment.

Marginal note:References to Tax Court

51. (1) If the Minister and another person agree in writing that a question arising under this Act, in respect of any assessment or proposed assessment of the person, should be determined by the Tax Court, that question shall be determined by that Court.

Marginal note:Time during consideration not to count

(2) For the purpose of making an assessment of a person who agreed in writing to the determination of a question, filing a notice of objection to an assessment or instituting an appeal from an assessment, the time between the day on which proceedings are instituted in the Tax Court to have a question determined and the day on which the question is finally determined shall not be counted in the computation of

(a) the four-year period referred to in subsection 42(1);

(b) the period within which a notice of objection to an assessment may be filed under section 43; or

(c) the period within which an appeal may be instituted under section 46.

Marginal note:Reference of common questions to Tax Court

52. (1) If the Minister is of the opinion that a question arising out of one and the same transaction or occurrence or series of transactions or occurrences is common to assessments or proposed assessments in respect of two or more persons, the Minister may apply to the Tax Court for a determination of the question.

Marginal note:Contents of application

(2) An application shall set out

(a) the question in respect of which the Minister requests a determination;

(b) the names of the persons that the Minister seeks to have bound by the determination; and

(c) the facts and reasons on which the Minister relies and on which the Minister based or intends to base assessments of each person named in the application.

Marginal note:Service

(3) A copy of the application shall be served by the Minister on each of the persons named in it and on any other person who, in the opinion of the Tax Court, is likely to be affected by the determination of the question.

Marginal note:Determination by Tax Court of question

(4) If the Tax Court is satisfied that a determination of a question set out in an application will affect assessments or proposed assessments in respect of two or more persons who have been served with a copy of the application and who are named in an order of the Tax Court under this subsection, it may

(a) if none of the persons so named has appealed from such an assessment, proceed to determine the question in any manner that it considers appropriate; or

(b) if one or more of the persons so named has or have appealed, make any order that it considers appropriate joining a party or parties to that appeal or those appeals and proceed to determine the question.

Marginal note:Determination final and conclusive

(5) Subject to subsection (6), if a question set out in an application is determined by the Tax Court, the determination is final and conclusive for the purposes of any assessments of persons named by the Court under subsection (4).

Marginal note:Appeal

(6) If a question set out in an application is determined by the Tax Court, the Minister or any of the persons who have been served with a copy of the application and who are named in an order of the Court under subsection (4) may, in accordance with the provisions of this Act, the Tax Court of Canada Act or the Federal Court Act, as they relate to appeals from or applications for judicial review of decisions of the Tax Court, appeal from the determination.

Marginal note:Parties to appeal

(7) The parties who are bound by a determination are parties to any appeal from the determination.

Marginal note:Time during consideration not counted

(8) For the purpose of making an assessment of a person, filing a notice of objection to an assessment or instituting an appeal from an assessment, the periods described in subsection (9) shall not be counted in the computation of

(a) the four-year period referred to in subsection 42(1);

(b) the period within which a notice of objection to an assessment may be filed under section 43; or

(c) the period within which an appeal may be instituted under section 46.

Marginal note:Excluded periods

(9) The period that is not to be counted in the computation of the periods described in paragraphs (8)(a) to (c) is the time between the day on which an application that is made under this section is served on a person under subsection (3) and

(a) in the case of a person named in an order of the Tax Court under subsection (4), the day on which the determination becomes final and conclusive and not subject to any appeal; or

(b) in the case of any other person, the day on which the person is served with a notice that the person has not been named in an order of the Tax Court under subsection (4).

ENFORCEMENT

Penalties

Marginal note:Penalty

53. (1) Subject to this section and section 54, if a person fails to pay an amount to the Receiver General as and when required under this Act, the person shall pay a penalty of 6% per year, compounded daily, on the amount not paid, computed for the period that begins on the first day after the day on or before which the amount was required to be paid and that ends on the day the amount is paid.

Marginal note:No penalty if security

(2) If on a particular day the Minister holds security under section 73 in respect of an amount payable by a person under this Act, the penalty under this section applies on the particular day only to the extent that the total of all amounts payable by the person under this Act that are outstanding on the particular day exceeds the value of the security at the time it was accepted by the Minister.

Marginal note:Payment before specified date

(3) If the Minister has served a demand that a person pay on or before a specified date all amounts payable by the person under this Act on the date of the demand, and the person pays the amount demanded on or before the specified date, the Minister shall waive any penalty or interest that would otherwise apply in respect of the amount demanded for the period beginning on the first day following the date of the demand and ending on the day of payment.

Marginal note:Effect of extension for returns

54. If the Minister extends the time within which a return of a person shall be filed, the return is filed at or before the expiry of the time so extended, and any amount that the person is required to pay with the return is paid at or before that time, no penalty under section 53 is payable in respect of the return or the amount.

Marginal note:Waiving or cancelling penalties

55. The Minister may waive or cancel penalties payable by a person under section 53.

Marginal note:Failure to answer demand

56. Every person who fails to file a return as and when required under a demand issued under section 26 is liable to a penalty equal to the greater of

(a) $250, and

(b) 5% of the amount payable under this Act by the person, for the fiscal month to which the demand applies, that was unpaid on the day that the return was due.

Marginal note:Failure to provide information

57. Every person who fails to provide any information or record as and when required under this Act is liable to a penalty of $100 for every failure unless, in the case of information required in respect of another person, a reasonable effort was made by the person to obtain the information.

Marginal note:False statements or omissions

58. Every person who knowingly, or under circumstances amounting to gross negligence, makes or participates in, assents to or acquiesces in the making of a false statement or omission in a return, application, form, certificate, statement, invoice or answer (each of which is in this section referred to as a “return”) is liable to a penalty of the greater of $250 and 25% of the total of

(a) if the false statement or omission is relevant to the determination of an amount payable under this Act by the person, the amount, if any, by which

(i) the amount payable

exceeds

(ii) the amount that would be payable by the person if the amount payable were determined on the basis of the information provided in the return, and

(b) if the false statement or omission is relevant to the determination of a refund or any other payment that may be obtained under this Act, the amount, if any, by which

(i) the amount that would be the refund or other payment payable to the person if the refund or other payment were determined on the basis of the information provided in the return

exceeds

(ii) the amount of the refund or other payment payable to the person.

Penalty Imposition

Marginal note:Notice of imposed penalty

59. A penalty that a person is liable to pay under any of sections 56 to 58 may be imposed by the Minister by a notice served personally or by registered or certified mail to the person’s latest known address, which notice is deemed to be an assessment.

Marginal note:When penalty becomes payable

60. The amount of penalty imposed on a person under section 59 is payable by the person to the Receiver General at the time it is imposed.

Offences and Punishment

Marginal note:Offence for failure to file return or to comply with demand or order

61. (1) Every person who fails to file or make a return as and when required under this Act or who fails to comply with an obligation under subsection 37(5) or (8) or section 38 or an order made under section 66 is guilty of an offence and, in addition to any penalty otherwise provided, is liable on summary conviction to a fine of not less than $1,000 and not more than $25,000 or to imprisonment for a term not exceeding 12 months, or to both.

Marginal note:Saving

(2) A person who is convicted of an offence under subsection (1) for a failure to comply with a provision of this Act is not liable to pay a penalty imposed under section 56 or 57 for the same failure, unless a notice of assessment for the penalty was issued before the information or complaint giving rise to the conviction was laid or made.

Marginal note:Offences for false or deceptive statement

62. (1) Every person commits an offence who

(a) makes, or participates in, assents to or acquiesces in the making of, a false or deceptive statement in a return, application, certificate, record or answer filed or made as required under this Act;

(b) for the purposes of evading payment of any amount payable under this Act, or obtaining a refund to which the person is not entitled under this Act,

(i) destroys, alters, mutilates, conceals or otherwise disposes of any records of a person, or

(ii) makes, or assents to or acquiesces in the making of, a false or deceptive entry, or omits, or assents to or acquiesces in the omission, to enter a material particular in the records of a person;

(c) wilfully, in any manner, evades or attempts to evade compliance with this Act or payment of an amount payable under this Act;

(d) wilfully, in any manner, obtains or attempts to obtain a refund to which the person is not entitled under this Act; or

(e) conspires with any person to commit an offence described in any of paragraphs (a) to (d).

Marginal note:Punishment

(2) Every person who commits an offence under subsection (1) is guilty of an offence punishable on summary conviction and, in addition to any penalty otherwise provided, is liable to

(a) a fine of not less than 50%, and not more than 200%, of the amount payable that was sought to be evaded, or of the refund sought, or, if the amount that was sought to be evaded cannot be ascertained, a fine of not less than $1,000 and not more than $25,000;

(b) imprisonment for a term not exceeding 18 months; or

(c) both a fine referred to in paragraph (a) and imprisonment for a term not exceeding 18 months.

Marginal note:Penalty on conviction

(3) A person who is convicted of an offence under subsection (1) is not liable to pay a penalty imposed under any of sections 56 to 58 for the same evasion or attempt unless a notice of assessment for that penalty was issued before the information or complaint giving rise to the conviction was laid or made.

Marginal note:Stay of appeal

(4) If, in any appeal under this Act, substantially the same facts are at issue as those that are at issue in a prosecution under this section, the Minister may file a stay of proceedings with the Tax Court and, on doing so, the proceedings before the Tax Court are stayed pending a final determination of the outcome of the prosecution.

Marginal note:Failure to pay or collect charges

63. Every person who wilfully fails to pay or collect a charge as and when required under this Act is guilty of an offence punishable on summary conviction and liable, in addition to any penalty or interest otherwise provided, to

(a) a fine not exceeding the aggregate of $1,000 and an amount equal to 20% of the amount of charge that should have been paid or collected;

(b) imprisonment for a term not exceeding six months; or

(c) both a fine referred to in paragraph (a) and imprisonment for a term not exceeding six months.

Marginal note:General offence

64. Every person who fails to comply with any provision of this Act or the regulations made under this Act for which no other offence is specified in this Act is guilty of an offence punishable on summary conviction and liable to a fine not exceeding $1,000.

Marginal note:Defence of due diligence

65. No person shall be convicted of an offence under this Act if the person establishes that they exercised all due diligence to prevent the commission of the offence.

Marginal note:Compliance orders

66. If a person is convicted by a court of an offence for a failure to comply with a provision of this Act, the court may make such order as it deems proper in order to enforce compliance with the provision.

Marginal note:Officers of corporations, etc.

67. If a person other than an individual commits an offence under this Act, every officer, director or agent of the person who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and liable on conviction to the punishment provided for the offence, whether or not the person has been prosecuted or convicted.

Marginal note:Power to decrease punishment

68. Despite the Criminal Code or any other law, the court has, in any prosecution or proceeding under this Act, neither the power to impose less than the minimum fine fixed under this Act nor the power to suspend sentence.

Marginal note:Information or complaint

69. (1) An information or complaint under this Act may be laid or made by any officer of the Agency, by a member of the Royal Canadian Mounted Police or by any person authorized to do so by the Minister and, if an information or complaint purports to have been laid or made under this Act, it is deemed to have been laid or made by a person so authorized by the Minister and shall not be called in question for lack of authority of the informant or complainant, except by the Minister or a person acting for the Minister or for Her Majesty.

Marginal note:Two or more offences

(2) An information or complaint in respect of an offence under this Act may be for one or more offences, and no information, complaint, warrant, conviction or other proceeding in a prosecution under this Act is objectionable or insufficient by reason of the fact that it relates to two or more offences.

Marginal note:Territorial jurisdiction

(3) An information or complaint in respect of an offence under this Act may be heard, tried or determined by any court, if the accused is resident, carrying on a commercial activity, found or apprehended or is in custody within the court’s territorial jurisdiction even though the matter of the information or complaint did not arise within that territorial jurisdiction.

Marginal note:Limitation of prosecutions

(4) An information or complaint under the provisions of the Criminal Code relating to summary convictions, in respect of an offence under this Act, may be laid or made within two years after the day on which the matter of the information or complaint arose.

Inspections

Marginal note:By whom

70. (1) A person authorized by the Minister to do so may, at all reasonable times, for any purpose related to the administration or enforcement of this Act, inspect, audit or examine the records, processes, property or premises of a person in order to determine whether that or any other person is in compliance with this Act.

Marginal note:Powers of authorized person

(2) For the purposes of an inspection, audit or examination, the authorized person may

(a) enter any place in which the authorized person reasonably believes the person keeps records or carries on any activity to which this Act applies; and

(b) require any individual to be present during the inspection, audit or examination and require that individual to answer all proper questions and to give to the authorized person all reasonable assistance.

Marginal note:Prior authorization

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

Marginal note:Warrant to enter dwelling-house

(4) A judge may issue a warrant authorizing a person to enter a dwelling-house subject to the conditions specified in the warrant if, on ex parte application by the Minister, a judge is satisfied by information on oath that

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

(b) entry into the dwelling-house is necessary for any purpose related to the administration or enforcement of this Act; and

(c) entry into the dwelling-house has been, or there are reasonable grounds to believe that entry will be, refused.

Marginal note:Orders if entry not authorized

(5) If the judge is not satisfied that entry into the dwelling-house is necessary for any purpose related to the administration or enforcement of this Act, the judge may, to the extent that access was or may be expected to be refused and that a record or property is or may be expected to be kept in the dwelling-house,

(a) order the occupant of the dwelling-house to provide a person with reasonable access to any record or property that is or should be kept in the dwelling-house; and

(b) make any other order that is appropriate in the circumstances to carry out the purposes of this Act.

Definition of “dwelling-house”

(6) In this section, “dwelling-house” means the whole or any part of a building or structure that is kept or occupied as a permanent or temporary residence, and includes

(a) a building within the curtilage of a dwelling-house that is connected to it by a doorway or by a covered and enclosed passageway; and

(b) a unit that is designed to be mobile and to be used as a permanent or temporary residence and that is being used as such a residence.

Marginal note:Copies of records

71. A person who inspects, audits, examines or is provided a record under section 70 may make, or cause to be made, one or more copies of the record.

Collection

Marginal note:Debts to Her Majesty

72. (1) Any amount payable under this Act (other than an amount payable by Her Majesty) is a debt due to Her Majesty and is recoverable in the Federal Court or any other court of competent jurisdiction or in any other manner provided under this Act.

Marginal note:Limitation

(2) No proceedings for the recovery of an amount payable by a person under this Act shall be commenced in a court

(a) in the case of an amount that may be assessed under this Act, unless at the time the action is commenced the person has been or may be assessed for that amount; and

(b) in any other case, more than four years after the person became liable to pay the amount.

Marginal note:Assessment before collection

(3) The Minister may not take any collection action under sections 74 to 79 in respect of any amount payable by a person that may be assessed under this Act, other than interest under section 27 or penalty under section 53, unless the amount has been assessed.

Marginal note:Interest on judgments

(4) If a judgment is obtained for any amount payable under this Act, including a certificate registered under section 74, the provisions of this Act by which interest is payable for a failure to pay an amount apply, with any modifications that the circumstances require, to the failure to pay the judgment debt, and the interest is recoverable in like manner as the judgment debt.

Marginal note:Litigation costs

(5) If an amount is payable by a person to Her Majesty because of an order, judgment or award of a court in respect of the costs of litigation relating to a matter to which this Act applies, sections 73 to 80 apply to the amount as if it were payable under this Act.

Marginal note:Security

73. (1) The Minister may, if the Minister considers it advisable, accept security in an amount and a form satisfactory to the Minister for the payment of any amount that is or may become payable under this Act.

Marginal note:Surrender of excess security

(2) If a person who has furnished security, or on whose behalf security has been furnished, under this section requests in writing that the Minister surrender the security or any part of it, the Minister must surrender the security to the extent that its value exceeds, at the time the request is received by the Minister, the amount that is sought to be secured.

Marginal note:Certificates

74. (1) Any amount payable by a person (in this section referred to as the “debtor”) under this Act that has not been paid as and when required under this Act may be certified by the Minister as an amount payable by the debtor.

Marginal note:Registration in court

(2) On production to the Federal Court, a certificate in respect of a debtor shall be registered in the Court and when so registered has the same effect, and all proceedings may be taken on the certificate, as if it were a judgment obtained in the Court against the debtor for a debt in the amount certified plus interest on the amount as provided under this Act to the day of payment and, for the purposes of those proceedings, the certificate is deemed to be a judgment of the Court against the debtor for a debt due to Her Majesty and enforceable as such.

Marginal note:Costs

(3) All reasonable costs and charges incurred or paid for the registration in the Federal Court of a certificate or in respect of any proceedings taken to collect the amount certified are recoverable in like manner as if they had been included in the amount certified in the certificate when it was registered.

Marginal note:Charge on property

(4) A document issued by the Federal Court evidencing a registered certificate in respect of a debtor, a writ of that Court issued pursuant to the certificate or any notification of the document or writ (which document, writ or notification is in this section referred to as a “memorial”) may be filed, registered or otherwise recorded for the purpose of creating a charge, lien or priority on, or a binding interest in, property in a province, or any interest in such property, held by the debtor, in the same manner as a document evidencing

(a) a judgment of the superior court of the province against a person for a debt owing by the person, or

(b) an amount payable or required to be remitted by a person in the province in respect of a debt owing to Her Majesty in right of the province

may be filed, registered or otherwise recorded in accordance with the law of the province to create a charge, lien or priority on, or a binding interest in, the property or interest.

Marginal note:Creation of charge

(5) If a memorial has been filed, registered or otherwise recorded under subsection (4),

(a) a charge, lien or priority is created on, or a binding interest is created in, property in the province, or any interest in such property, held by the debtor, or

(b) such property or interest in the property is otherwise bound,

in the same manner and to the same extent as if the memorial were a document evidencing a judgment referred to in paragraph (4)(a) or an amount referred to in paragraph (4)(b), and the charge, lien, priority or binding interest created is subordinate to any charge, lien, priority or binding interest in respect of which all steps necessary to make it effective against other creditors were taken before the time the memorial was filed, registered or otherwise recorded.

Marginal note:Proceedings in respect of memorial

(6) If a memorial is filed, registered or otherwise recorded in a province under subsection (4), proceedings may be taken in the province in respect of the memorial, including proceedings

(a) to enforce payment of the amount evidenced by the memorial, interest on the amount and all costs and charges paid or incurred in respect of

(i) the filing, registration or other recording of the memorial, and

(ii) proceedings taken to collect the amount,

(b) to renew or otherwise prolong the effectiveness of the filing, registration or other recording of the memorial,

(c) to cancel or withdraw the memorial wholly or in respect of any of the property or interests affected by the memorial, or

(d) to postpone the effectiveness of the filing, registration or other recording of the memorial in favour of any right, charge, lien or priority that has been or is intended to be filed, registered or otherwise recorded in respect of any property or interest affected by the memorial,

in the same manner and to the same extent as if the memorial were a document evidencing a judgment referred to in paragraph (4)(a) or an amount referred to in paragraph (4)(b), except that, if in any such proceeding or as a condition precedent to any such proceeding, any order, consent or ruling is required under the law of the province to be made or given by the superior court of the province or by a judge or official of the court, a like order, consent or ruling may be made or given by the Federal Court or by a judge or official of the Federal Court and, when so made or given, has the same effect for the purposes of the proceeding as if it were made or given by the superior court of the province or by a judge or official of the court.

Marginal note:Presentation of documents

(7) If

(a) a memorial is presented for filing, registration or other recording under subsection (4), or a document relating to the memorial is presented for filing, registration or other recording for the purpose of any proceeding described in subsection (6), to any official of a property registry system of a province, or

(b) access is sought to any person, place or thing in a province to make the filing, registration or other recording,

the memorial or document shall be accepted for filing, registration or other recording or the access shall be granted, as the case may be, in the same manner and to the same extent as if the memorial or document relating to the memorial were a document evidencing a judgment referred to in paragraph (4)(a) or an amount referred to in paragraph (4)(b) for the purpose of a like proceeding, except that, if the memorial or document is issued by the Federal Court or signed or certified by a judge or official of the Court, any affidavit, declaration or other evidence required under the law of the province to be provided with or to accompany the memorial or document in the proceedings is deemed to have been provided with or to have accompanied the memorial or document as so required.

Marginal note:Sale, etc.

(8) Despite any law of Canada or of a province, a sheriff or other person shall not, without the written consent of the Minister, sell or otherwise dispose of any property or publish any notice or otherwise advertise in respect of any sale or other disposition of any property pursuant to any process issued or charge, lien, priority or binding interest created in any proceeding to collect an amount certified in a certificate made under subsection (1), interest on the amount or costs, but if that consent is subsequently given, any property that would have been affected by such a process, charge, lien, priority or binding interest if the Minister’s consent had been given at the time the process was issued or the charge, lien, priority or binding interest was created, as the case may be, shall be bound, seized, attached, charged or otherwise affected as it would be if that consent had been given at the time the process was issued or the charge, lien, priority or binding interest was created, as the case may be.

Marginal note:Completion of notices, etc.

(9) If information required to be set out by any sheriff or other person in a minute, notice or document required to be completed for any purpose cannot, because of subsection (8), be so set out without the written consent of the Minister, the sheriff or other person shall complete the minute, notice or document to the extent possible without that information and, when that consent of the Minister is given, a further minute, notice or document setting out all the information shall be completed for the same purpose, and the sheriff or other person, having complied with this subsection, is deemed to have complied with the Act, regulation or rule requiring the information to be set out in the minute, notice or document.

Marginal note:Application for an order

(10) A sheriff or other person who is unable, because of subsection (8) or (9), to comply with any law or rule of court is bound by any order made by a judge of the Federal Court, on an ex parte application by the Minister, for the purpose of giving effect to the proceeding, charge, lien, priority or binding interest.

Marginal note:Deemed security

(11) If a charge, lien, priority or binding interest created under subsection (5) by filing, registering or otherwise recording a memorial under subsection (4) is registered in accordance with subsection 87(1) of the Bankruptcy and Insolvency Act, it is deemed

(a) to be a claim that is secured by a security and that, subject to subsection 87(2) of that Act, ranks as a secured claim under that Act; and

(b) to also be a claim referred to in paragraph 86(2)(a) of that Act.

Marginal note:Details in certificates and memorials

(12) Despite any law of Canada or of the legislature of a province, in any certificate in respect of a debtor, any memorial evidencing a certificate or any writ or document issued for the purpose of collecting an amount certified, it is sufficient for all purposes

(a) to set out, as the amount payable by the debtor, the total of amounts payable by the debtor without setting out the separate amounts making up that total; and

(b) to refer to the rate of interest to be charged on the separate amounts making up the amount payable in general terms as interest at the prescribed rate under this Act applicable from time to time on amounts payable to the Receiver General, without indicating the specific rates of interest to be charged on each of the separate amounts or to be charged for any period.

Marginal note:Garnishment

75. (1) If the Minister has knowledge or suspects that a person is, or will be within one year, liable to make a payment to another person who is liable to pay an amount under this Act (in this section referred to as a “debtor”), the Minister may, by notice in writing, require the person to pay without delay, if the money is immediately payable, and in any other case, as and when the money becomes payable, the money otherwise payable to the debtor in whole or in part to the Receiver General on account of the debtor’s liability under this Act.

Marginal note:Garnishment of loans or advances

(2) Without limiting the generality of subsection (1), if the Minister has knowledge or suspects that within 90 days

(a) a bank, credit union, trust company or other similar person (in this section referred to as an “institution”) will loan or advance money to, or make a payment on behalf of, or make a payment in respect of a negotiable instrument issued by, a debtor who is indebted to the institution and who has granted security in respect of the indebtedness, or

(b) a person, other than an institution, will loan or advance money to, or make a payment on behalf of, a debtor who the Minister knows or suspects

(i) is employed by, or is engaged in providing services or property to, that person or was or will be, within 90 days, so employed or engaged, or

(ii) if that person is a corporation, is not dealing at arm’s length with that person,

the Minister may, by notice in writing, require the institution or person, as the case may be, to pay in whole or in part to the Receiver General on account of the debtor’s liability under this Act the money that would otherwise be so loaned, advanced or paid.

Marginal note:Amounts payable to secured creditor

(3) Despite any provision of this or any other Act (other than the Bankruptcy and Insolvency Act), any enactment of a province or any law, if the Minister has knowledge or suspects that a person is or will become, within 90 days, liable to make a payment to a debtor or to a secured creditor who has a right to receive the payment that, but for a security interest in favour of the secured creditor, would be payable to the debtor, the Minister may, by a notice in writing, require the person to pay without delay, if the moneys are immediately payable, and in any other case, as and when the moneys become payable, the moneys otherwise payable to the debtor or the secured creditor in whole or in part to the Receiver General on account of the debtor’s liability under this Act. On receipt of that letter by the person, the amount of those moneys that is required by that letter to be paid to the Receiver General becomes, despite any security interest in those moneys, the property of Her Majesty to the extent of that liability as assessed by the Minister and shall be paid to the Receiver General in priority to any such security interest.

Marginal note:Effect of receipt

(4) A receipt issued by the Minister for money paid as required under this section is a good and sufficient discharge of the original liability to the extent of the payment.

Marginal note:Effect of requirement

(5) If the Minister has, under this section, required a person to pay to the Receiver General on account of the liability under this Act of a debtor money otherwise payable by the person to the debtor as interest, rent, remuneration, a dividend, an annuity or other periodic payment, the requirement applies to all such payments to be made by the person to the debtor until the liability under this Act is satisfied, and operates to require payments to the Receiver General out of each such payment of any amount that is stipulated by the Minister in a notice in writing.

Marginal note:Failure to comply

(6) Every person who fails to comply with a requirement under subsection (1) or (5) is liable to pay to Her Majesty an amount equal to the amount that the person was required under that subsection to pay to the Receiver General.

Marginal note:Other failures to comply

(7) Every institution or person that fails to comply with a requirement under subsection (2) with respect to money to be loaned, advanced or paid is liable to pay to Her Majesty an amount equal to the lesser of

(a) the total of money so loaned, advanced or paid, and

(b) the amount that the institution or person was required under that subsection to pay to the Receiver General.

Marginal note:Assessment

(8) The Minister may assess any person for any amount payable under this section by the person to the Receiver General and, if the Minister sends a notice of assessment, sections 39 to 52 apply with any modifications that the circumstances require.

Marginal note:Time limit

(9) An assessment of an amount payable under this section by a person to the Receiver General shall not be made more than four years after the notice from the Minister requiring the payment was received by the person.

Marginal note:Effect of payment as required

(10) If an amount that would otherwise have been advanced, loaned or paid to or on behalf of a debtor is paid by a person to the Receiver General in accordance with a notice from the Minister issued under this section or with an assessment under subsection (8), the person is deemed for all purposes to have advanced, loaned or paid the amount to or on behalf of the debtor.

Marginal note:Recovery by deduction or set-off

76. If a person is indebted to Her Majesty under this Act, the Minister may require the retention by way of deduction or set-off of any amount that the Minister may specify out of any amount that may be or become payable to that person by Her Majesty.

Marginal note:Acquisition of debtor’s property

77. For the purpose of collecting debts owed by a person to Her Majesty under this Act, the Minister may purchase or otherwise acquire any interest in the person’s property that the Minister is given a right to acquire in legal proceedings or under a court order or that is offered for sale or redemption, and may dispose of any interest so acquired in any manner that the Minister considers reasonable.

Marginal note:Money seized from debtor

78. (1) If the Minister has knowledge or suspects that a person is holding money that was seized by a police officer in the course of administering or enforcing the criminal law of Canada from another person who is liable to pay any amount under this Act (in this section referred to as the “debtor”) and that is restorable to the debtor, the Minister may in writing require the person to turn over the money otherwise restorable to the debtor, in whole or in part, to the Receiver General on account of the debtor’s liability under this Act.

Marginal note:Receipt of Minister

(2) A receipt issued by the Minister for money turned over is a good and sufficient discharge of the requirement to restore the money to the debtor to the extent of the amount so turned over.

Marginal note:Seizure if failure to pay

79. (1) If a person fails to pay an amount as required under this Act, the Minister may in writing give 30 days notice to the person, addressed to their latest known address, of the Minister’s intention to direct that the person’s things be seized and disposed of. If the person fails to make the payment before the expiry of the 30 days, the Minister may issue a certificate of the failure and direct that the person’s things be seized.

Marginal note:Disposition

(2) Things that have been seized under subsection (1) shall be kept for 10 days at the expense and risk of the owner. If the owner does not pay the amount due together with all expenses within the 10 days, the Minister may dispose of the things in a manner the Minister considers appropriate in the circumstances.

Marginal note:Proceeds of disposition

(3) Any surplus resulting from a disposition, after deduction of the amount owing and all expenses, shall be paid or returned to the owner of the things seized.

Marginal note:Exemptions from seizure

(4) Anything of any person in default that would be exempt from seizure under a writ of execution issued by a superior court of the province in which the seizure is made is exempt from seizure under this section.

Marginal note:Person leaving Canada or defaulting

80. (1) If the Minister suspects that a person has left or is about to leave Canada, the Minister may, before the day otherwise fixed for payment, by notice to the person served personally or sent by registered or certified mail addressed to their latest known address, demand payment of any amount for which the person is liable under this Act or would be so liable if the time for payment had arrived, and the amount shall be paid without delay despite any other provision of this Act.

Marginal note:Seizure

(2) If a person fails to pay an amount required under subsection (1), the Minister may direct that things of the person be seized, and subsections 79(2) to (4) apply, with any modifications that the circumstances require.

Marginal note:Liability of directors

81. (1) If a corporation fails to pay any amount as and when required under this Act, the directors of the corporation at the time it was required to pay it are jointly and severally or solidarily liable, together with the corporation, to pay it and any interest that is payable on it under this Act.

Marginal note:Limitations

(2) A director of a corporation is not liable unless

(a) a certificate for the amount of the corporation’s liability has been registered in the Federal Court under section 74 and execution for that amount has been returned unsatisfied in whole or in part;

(b) the corporation has commenced liquidation or dissolution proceedings or has been dissolved, and a claim for the amount of the corporation’s liability has been proved within six months after the earlier of the date of commencement of the proceedings and the date of dissolution; or

(c) the corporation has made an assignment or a receiving order has been made against it under the Bankruptcy and Insolvency Act, and a claim for the amount of the corporation’s liability has been proved within six months after the date of the assignment or receiving order.

Marginal note:Diligence

(3) A director of a corporation is not liable for a failure under subsection (1) if the director exercised the degree of care, diligence and skill to prevent the failure that a reasonably prudent person would have exercised in comparable circumstances.

Marginal note:Assessment

(4) The Minister may assess any person for any amount payable by the person under this section and, if the Minister sends a notice of assessment, sections 39 to 52 apply with any modifications that the circumstances require.

Marginal note:Time limit

(5) An assessment of any amount payable by a person who is a director of a corporation shall not be made more than two years after the person ceased to be a director of the corporation.

Marginal note:Amount recoverable

(6) If execution referred to in paragraph (2)(a) has issued, the amount recoverable from a director is the amount remaining unsatisfied after execution.

Marginal note:Preference

(7) If a director of a corporation pays an amount in respect of the corporation’s liability that is proved in liquidation, dissolution or bankruptcy proceedings, the director is entitled to any preference to which Her Majesty would have been entitled had the amount not been so paid, and if a certificate that relates to the amount has been registered, the director is entitled to an assignment of the certificate to the extent of the director’s payment, which assignment the Minister is empowered to make.

Marginal note:Contribution

(8) A director who satisfies a claim under this section is entitled to contribution from the other directors who were liable for the claim.

Evidence and Procedure

Marginal note:Sending by mail

82. (1) For the purposes of this Act and subject to subsection (2), anything sent by registered, certified or first class mail is deemed to have been received by the person to whom it was sent on the day it was mailed.

Marginal note:Paying by mail

(2) A person who is required under this Act to pay an amount is deemed not to have paid it until it is received by the Receiver General.

Marginal note:Proof of service by mail

83. (1) If, under this Act, provision is made for sending by mail a request for information, a notice or a demand, an affidavit of an officer of the Agency, sworn before a commissioner or other person authorized to take affidavits, is evidence of the sending and of the request, notice or demand if the affidavit sets out that

(a) the officer has knowledge of the facts in the particular case;

(b) such a request, notice or demand was sent by registered or certified mail on a specified day to a specified person and address; and

(c) the officer identifies as exhibits attached to the affidavit the post office certificate of registration of the letter or a true copy of the relevant portion of the certificate and a true copy of the request, notice or demand.

Marginal note:Proof of personal service

(2) If, under this Act, provision is made for personal service of a request for information, a notice or a demand, an affidavit of an officer of the Agency, sworn before a commissioner or other person authorized to take affidavits, is evidence of the personal service and of the request, notice or demand if the affidavit sets out that

(a) the officer has knowledge of the facts in the particular case;

(b) such a request, notice or demand was served personally on a named day on the person to whom it was directed; and

(c) the officer identifies as an exhibit attached to the affidavit a true copy of the request, notice or demand.

Marginal note:Proof of failure to comply

(3) If, under this Act, a person is required to make a return, an application, a statement, an answer or a certificate, an affidavit of an officer of the Agency, sworn before a commissioner or other person authorized to take affidavits, setting out that the officer has charge of the appropriate records and that, after a careful examination and search of the records, the officer has been unable to find in a given case that the return, application, statement, answer or certificate has been made by that person, is evidence that in that case the person did not make the return, application, statement, answer or certificate.

Marginal note:Proof of time of compliance

(4) If, under this Act, a person is required to make a return, an application, a statement, an answer or a certificate, an affidavit of an officer of the Agency, sworn before a commissioner or other person authorized to take affidavits, setting out that the officer has charge of the appropriate records and that, after a careful examination of the records, the officer has found that the return, application, statement, answer or certificate was filed or made on a particular day, is evidence that it was filed or made on that day.

Marginal note:Proof of documents

(5) An affidavit of an officer of the Agency, sworn before a commissioner or other person authorized to take affidavits, setting out that the officer has charge of the appropriate records and that a document attached to the affidavit is a document or true copy of a document made by or on behalf of the Minister or a person exercising the powers of the Minister or by or on behalf of a person, is evidence of the nature and contents of the document.

Marginal note:Proof of no appeal

(6) An affidavit of an officer of the Agency, sworn before a commissioner or other person authorized to take affidavits, setting out that the officer has charge of the appropriate records and has knowledge of the practice of the Agency and that an examination of the records shows that a notice of assessment was mailed or otherwise sent to a person on a particular day under this Act and that, after a careful examination and search of the records, the officer has been unable to find that a notice of objection or of appeal from the assessment was received within the time allowed for an objection or appeal to be filed under this Act, is evidence of the statements contained in the affidavit.

Marginal note:Presumption

(7) If evidence is offered under this section by an affidavit from which it appears that the person making the affidavit is an officer of the Agency, it is not necessary to prove the signature of the person or that the person is such an officer, nor is it necessary to prove the signature or official character of the person before whom the affidavit was sworn.

Marginal note:Proof of documents

(8) Every document purporting to have been executed under or in the course of the administration or enforcement of this Act over the name in writing of the Minister, the Commissioner or an officer authorized to exercise the powers or perform the duties of the Minister under this Act is deemed to be a document signed, made and issued by the Minister, the Commissioner or the officer, unless it has been called into question by the Minister or a person acting for the Minister or for Her Majesty.

Marginal note:Mailing date

(9) If a notice or demand that the Minister is required or authorized under this Act to send or mail to a person is mailed to the person, the day of mailing is deemed to be the date of the notice or demand.

Marginal note:Date when assessment made

(10) If a notice of assessment has been sent by the Minister as required under this Act, the assessment is deemed to have been made on the day of mailing of the notice of assessment.

Marginal note:Proof of return

(11) In a prosecution for an offence under this Act, the production of a return, an application, a certificate, a statement or an answer required under this Act, purporting to have been filed or delivered by or on behalf of the person charged with the offence or to have been made or signed by or on behalf of that person, is evidence that the return, application, certificate, statement or answer was filed or delivered by or on behalf of that person or was made or signed by or on behalf of that person.

Marginal note:Proof of return — printouts

(12) For the purposes of this Act, a document presented by the Minister purporting to be a printout of the information in respect of a person received under section 23 by the Minister shall be received as evidence and, in the absence of evidence to the contrary, is proof of the return filed by the person under that section.

Marginal note:Proof of return — production of returns, etc.

(13) In a proceeding under this Act, the production of a return, an application, a certificate, a statement or an answer required under this Act, purporting to have been filed, delivered, made or signed by or on behalf of a person, is evidence that the return, application, certificate, statement or answer was filed, delivered, made or signed by or on behalf of that person.

Marginal note:Evidence

(14) In a prosecution for an offence under this Act, an affidavit of an officer of the Agency, sworn before a commissioner or other person authorized to take affidavits, setting out that the officer has charge of the appropriate records and that an examination of the records shows that an amount required under this Act to be paid to the Receiver General has not been received by the Receiver General, is evidence of the statements contained in the affidavit.

Marginal note:Probative force of copy

(15) Any copy of an original record made under section 71 that is purported to be certified by the Minister or an officer to be a copy of the original record is evidence of the nature and content of the original record, and has the same probative force as the original record would have if it were proven in the ordinary way.

REGULATIONS

Marginal note:Regulations

84. (1) The Governor in Council may make regulations prescribing any matter or thing that by this Act is to be or may be prescribed and generally to carry out the purposes and provisions of this Act.

Marginal note:Effect

(2) A regulation made under this Act has effect from the day it is published in the Canada Gazette or at any later time that may be specified in the regulation, unless it provides otherwise and

(a) has a relieving effect only;

(b) corrects an ambiguous or deficient enactment that was not in accordance with the objects of this Act;

(c) is consequential on an amendment to this Act that is applicable before the day on which the regulation is published in the Canada Gazette; or

(d) gives effect to a budgetary or other public announcement, in which case the regulation shall not, unless paragraph (a), (b) or (c) applies, have effect before the day on which the announcement was made.

SCHEDULE(Section 2)LISTED AIRPORTS

Ontario

Hamilton

Kingston

Kitchener/Waterloo Regional

London

North BayOttawa (Macdonald-Cartier International)

Sarnia (Chris Hadfield)

Sault Ste. Marie

Sudbury

Thunder Bay

Timmins

Toronto/Buttonville Municipal

Toronto (City Centre)

Toronto (Lester B. Pearson International)

Windsor

Quebec

Alma

Bagotville

Baie-Comeau

Chibougamau/Chapais

Gaspé

Îles-de-la-Madeleine

Kuujjuaq

Kuujjuarapik

La Grande Rivière

La Grande-3

La Grande-4

Lourdes-de-Blanc-Sablon

Mont Joli

Montreal International (Dorval)

Montreal International (Mirabel)

Quebec (Jean Lesage International)

Roberval

Rouyn-Noranda

Sept-Îles

Val d’Or

Nova Scotia

Halifax International

Sydney

Yarmouth

New Brunswick

Bathurst

Charlo

Fredericton

Moncton

Saint John

St. Leonard

Manitoba

Brandon

Thompson

Winnipeg International

British Colombia

Abbotsford

Campbell River

Castlegar

Comox

Cranbrook

Dawson Creek

Fort St. John

Kamloops

Kelowna

Nanaimo

Penticton

Prince George

Prince Rupert

Quesnel

Sandspit

Smithers

Terrace

Vancouver International

Victoria International

Williams Lake

Prince Edward Island

Charlottetown

Saskatchewan

Prince Albert

Regina

Saskatoon (John G. DiefenbakerInternational)

Alberta

Calgary International

Edmonton International

Fort McMurray

Grande Prairie

Lethbridge

Lloydminster

Medicine Hat

Newfoundland and Labrador

Churchill Falls

Deer Lake

Gander International

Goose Bay

St. Anthony

St. John’s International

Stephenville

Wabush

Yukon

Whitehorse International

Northwest Territories

Yellowknife

Nunavut

Iqaluit

Consequential Amendments

R.S., c. T-2Tax Court of Canada Act

Marginal note:2001, c. 25, s. 101(1)

6. (1) Subsection 12(1) of the Tax Court of Canada Act is replaced by the following:

Marginal note:Jurisdiction

12. (1) The Court has exclusive original jurisdiction to hear and determine references and appeals to the Court on matters arising under the Air Travellers Security Charge Act, the Canada Pension Plan, the Cultural Property Export and Import Act, Part V.1 of the Customs Act, the Employment Insurance Act, Part IX of the Excise Tax Act, the Income Tax Act, the Old Age Security Act and the Petroleum and Gas Revenue Tax Act, where references or appeals to the Court are provided for in those Acts.

Marginal note:2001, c. 25, s. 101(2)

(2) Subsections 12(3) and (4) of the Act are replaced by the following:

Marginal note:Further jurisdiction

(3) The Court has exclusive original jurisdiction to hear and determine questions referred to it under section 173 or 174 of the Income Tax Act, section 51 or 52 of the Air Travellers Security Charge Act, section 97.58 of the Customs Act or section 310 or 311 of the Excise Tax Act.

Marginal note:Extensions of time

(4) The Court has exclusive original jurisdiction to hear and determine applications for extensions of time under section 45 or 47 of the Air Travellers Security Charge Act, section 97.52 or 97.53 of the Customs Act, section 166.2 or 167 of the Income Tax Act, subsection 103(1) of the Employment Insurance Act, section 304 or 305 of the Excise Tax Act, subsection 28(1) of the Canada Pension Plan or section 33.2 of the Cultural Property Export and Import Act.

Marginal note:2001, c. 25, s. 103

7. Subsection 18.29(3) of the Act is replaced by the following:

Marginal note:Extensions of time

(3) The provisions referred to in subsection (1) also apply, with any modifications that the circumstances require, in respect of applications for extensions of time under section 45 or 47 of the Air Travellers Security Charge Act, section 97.51 or 97.52 of the Customs Act, section 166.2 or 167 of the Income Tax Act, section 304 or 305 of the Excise Tax Act, subsection 103(1) of the Employment Insurance Act, subsection 28(1) of the Canada Pension Plan or section 33.2 of the Cultural Property Export and Import Act.

Marginal note:2001, c. 25, s. 110

8. Subsection 18.31(2) of the Act is replaced by the following:

Marginal note:Determination of a question

(2) If it is agreed under section 51 of the Air Travellers Security Charge Act, section 97.58 of the Customs Act or section 310 of the Excise Tax Act that a question should be determined by the Court, sections 17.1, 17.2 and 17.4 to 17.8 apply, with any modifications that the circumstances require, in respect of the determination of the question.

Marginal note:1990, c. 45, s. 63

9. Subsection 18.32(2) of the Act is replaced by the following:

Marginal note:Provisions applicable to determination of a question

(2) If an application has been made under section 52 of the Air Travellers Security Charge Act or section 311 of the Excise Tax Act for the determination of a question, the application or determination of the question shall, subject to section 18.33, be determined in accordance with sections 17.1, 17.2 and 17.4 to 17.8, with any modifications that the circumstances require.

Coordinating Amendment

Marginal note:Bill C-47

10. (1) Subsections (2) to (6) apply if Bill C-47, introduced in the 1st Session of the 37th Parliament and entitled the Excise Act, 2001 (referred to in this section as the “other Act”), receives royal assent.

Marginal note:Amendment to Tax Court of Canada Act

(2) On the later of the coming into force of subsection 6(1) of this Act and the application of subsection 408(7) of the other Act, subsection 12(1) of the Tax Court of Canada Act is replaced by the following:

Marginal note:Jurisdiction

12. (1) The Court has exclusive original jurisdiction to hear and determine references and appeals to the Court on matters arising under the Air Travellers Security Charge Act, the Canada Pension Plan, the Cultural Property Export and Import Act, Part V.1 of the Customs Act, the Employment Insurance Act, the Excise Act, 2001, Part IX of the Excise Tax Act, the Income Tax Act, the Old Age Security Act and the Petroleum and Gas Revenue Tax Act, where references or appeals to the Court are provided for in those Acts.

Marginal note:Amendment to Tax Court of Canada Act

(3) On the later of the coming into force of subsection 6(2) of this Act and the application of subsection 408(8) of the other Act, subsections 12(3) and (4) of the Tax Court of Canada Act are replaced by the following:

Marginal note:Further jurisdiction

(3) The Court has exclusive original jurisdiction to hear and determine questions referred to it under section 51 or 52 of the Air Travellers Security Charge Act, section 97.58 of the Customs Act, section 204 or 205 of the Excise Act, 2001, section 310 or 311 of the Excise Tax Act or section 173 or 174 of the Income Tax Act.

Marginal note:Extensions of time

(4) The Court has exclusive original jurisdiction to hear and determine applications for extensions of time under section 45 or 47 of the Air Travellers Security Charge Act, subsection 28(1) of the Canada Pension Plan, section 33.2 of the Cultural Property Export and Import Act, section 97.52 or 97.53 of the Customs Act, subsection 103(1) of the Employment Insurance Act, section 197 or 199 of the Excise Act, 2001, section 304 or 305 of the Excise Tax Act, or section 166.2 or 167 of the Income Tax Act.

Marginal note:Amendment to Tax Court of Canada Act

(4) On the later of the coming into force of section 7 of this Act and the application of subsection 408(10) of the other Act, subsection 18.29(3) of the Tax Court of Canada Act is replaced by the following:

Marginal note:Extensions of time

(3) The provisions referred to in subsection (1) also apply, with any modifications that the circumstances require, in respect of applications for extensions of time under section 45 or 47 of the Air Travellers Security Charge Act, subsection 28(1) of the Canada Pension Plan, section 33.2 of the Cultural Property Export and Import Act, section 97.51 or 97.52 of the Customs Act, subsection 103(1) of the Employment Insurance Act, section 197 or 199 of the Excise Act, 2001, section 304 or 305 of the Excise Tax Act or section 166.2 or 167 of the Income Tax Act.

Marginal note:Amendment to Tax Court of Canada Act

(5) On the later of the coming into force of section 8 of this Act and the application of subsection 408(16) of the other Act, subsection 18.31(2) of the Tax Court of Canada Act is replaced by the following:

Marginal note:Determination of a question

(2) If it is agreed under section 51 of the Air Travellers Security Charge Act, section 97.58 of the Customs Act, section 204 of the Excise Act, 2001 or section 310 of the Excise Tax Act that a question should be determined by the Court, sections 17.1, 17.2 and 17.4 to 17.8 apply, with any modifications that the circumstances require, in respect of the determination of the question.

Marginal note:Amendment to Tax Court of Canada Act

(6) On the later of the coming into force of section 9 of this Act and section 407 of the other Act, subsection 18.32(2) of the Tax Court of Canada Act is replaced by the following:

Marginal note:Provisions applicable to determination of a question

(2) If an application has been made under section 52 of the Air Travellers Security Charge Act, section 205 of the Excise Act, 2001 or section 311 of the Excise Tax Act for the determination of a question, the application or determination of the question shall, subject to section 18.33, be determined in accordance with sections 17.1, 17.2 and 17.4 to 17.8, with any modifications that the circumstances require.

Coming into Force

Marginal note:Coming into force

11. This Part comes into force on the day on which it receives royal assent or is deemed to have come into force on April 1, 2002, whichever is the earlier.

PART 3 EMPLOYMENT INSURANCE

1996, c. 23Employment Insurance Act

12. (1) Subsection 10(2) of the Employment Insurance Act is replaced by the following:

Marginal note:Length of benefit period

(2) The length of a benefit period is 52 weeks, except as otherwise provided in subsections (10) to (15) and section 24.

(2) Paragraph 10(8)(a) of the Act is replaced by the following:

(a) no further benefits are payable to the claimant in their benefit period, including for the reason that benefits have been paid for the maximum number of weeks for which benefits may be paid under section 12;

(3) Subsection 10(8) of the Act is amended by adding the word “or” at the end of paragraph (b) and by repealing paragraph (c).

(4) Subsection 10(12) of the Act is replaced by the following:

Marginal note:Extension of benefit period — children in hospital

(12) If the child or children referred to in subsection 23(1) are hospitalized during the period referred to in subsection 23(2), the benefit period is extended by the number of weeks during which the child or children are hospitalized.

Marginal note:Extension of benefit period — special benefits

(13) If, during a claimant’s benefit period,

(a) regular benefits were not paid to the claimant,

(b) benefits were paid because of the three reasons mentioned in subsection 12(3), and

(c) with respect to the reasons mentioned in paragraphs 12(3)(b) and (c), benefits were not paid for the maximum number of weeks established for those reasons,

the benefit period is extended so that benefits may be paid up to the maximum number of weeks available to the claimant for the reason mentioned in each of those paragraphs.

Marginal note:Maximum extension under subsections (10) to (13)

(14) Subject to subsection (15), no extension under any of subsections (10) to (13) may result in a benefit period of more than 104 weeks.

Marginal note:Maximum extension under subsection (13)

(15) No extension under subsection (13) may result in a benefit period of more than 67 weeks, unless the benefit period is also extended under any of subsections (10) to (12).

Marginal note:2000, c. 14, s. 3(3)

13. Subsection 12(5) of the Act is replaced by the following:

Marginal note:Combined weeks of benefits

(5) In a claimant’s benefit period, the claimant may combine weeks of benefits to which the claimant is entitled because of a reason mentioned in subsection (3), but the maximum number of combined weeks is 50. If the benefit period is extended under subsection 10(13), the maximum number of combined weeks is 65.

14. Section 23 of the Act is amended by adding the following after subsection (2):

Marginal note:Extension of period — children in hospital

(3) If the child or children referred to in subsection (1) are hospitalized during the period referred to in subsection (2), the period is extended by the number of weeks during which the child or children are hospitalized.

Marginal note:Limitation

(3.1) No extension under subsection (3) may result in the period being longer than 104 weeks.

Marginal note:Extension of period — special benefits

(3.2) If, during a claimant’s benefit period,

(a) regular benefits were not paid to the claimant,

(b) benefits were paid because of the three reasons mentioned in subsection 12(3), and

(c) with respect to the reason mentioned in paragraph 12(3)(b), benefits were not paid for the maximum number of weeks established for that reason,

the period referred to in subsection (2) is extended so that benefits may be paid up to the maximum number of weeks available to the claimant for that reason.

Marginal note:Limitation

(3.3) No extension under subsection (3.2) may result in the period being longer than 67 weeks or, if the benefit period is extended under any of subsections 10(10) to (13), 104 weeks.

Transitional Provision

15. (1) Subsections 10(12) and 23(3) of the Employment Insurance Act, as enacted by subsection 12(4) and section 14, respectively, of this Act, apply to a claimant for any benefit period that begins on or after the day on which this Act receives royal assent.

(2) Subsections 10(13) and 23(3.2) of the Employment Insurance Act, as enacted by subsection 12(4) and section 14, respectively, of this Act, apply to a claimant for any benefit period that has not ended before March 3, 2002 or that begins on or after that date.

SOR/96-445Employment Insurance (Fishing) Regulations

16. (1) Section 8 of the Employment Insurance (Fishing) Regulations is amended by adding the following after subsection (11.1):

(11.2) Notwithstanding subsection (11) and subject to the applicable maximums referred to in subsections (17) and (18), if, during the period referred to in subsection 23(2) of the Act, the child or children referred to in subsection 23(1) of the Act are hospitalized, the fisher’s benefit period is extended by the number of weeks during which the child or children are hospitalized.

(11.3) Notwithstanding subsection (11) and subject to the applicable maximums referred to in subsection (17), if, during a fisher’s benefit period,

(a) benefits were not paid to the fisher under subsection (12),

(b) benefits were paid because of the three reasons mentioned in subsection 12(3) of the Act, and

(c) with respect to the reasons mentioned in paragraphs 12(3)(b) and (c) of the Act, benefits were not paid for the maximum number of weeks established for those reasons,

the benefit period is extended so that benefits may be paid up to the maximum number of weeks available to the fisher for the reason mentioned in each of those paragraphs.

(11.4) Subject to subsection (11.5), no extension under any of subsections (11.1) to (11.3) may result in a benefit period of more than 104 weeks.

(11.5) No extension under subsection (11.3) may result in a benefit period of more than 67 weeks, unless the benefit period is also extended under subsection (11.1) or (11.2).

Marginal note:SOR/2001-74

(2) Subsection 8(14) of the Regulations is replaced by the following:

(14) No benefit period established under subsection (1) or (6) shall be extended beyond the date determined in accordance with any of subsections (11) to (11.3).

(3) Section 8 of the Regulations is amended by adding the following after subsection (17):

(17.1) For the purpose of subsection (17), the reference in subsection 12(5) of the Act to subsection 10(13) of the Act is to be read as a reference to subsection (11.3) of this section.

(4) Subsection 8(11.2) of the Regulations, as enacted by subsection (1), applies to a fisher for any benefit period that begins on or after the day on which this Act receives royal assent.

(5) Subsection 8(11.3) of the Regulations, as enacted by subsection (1), applies to a fisher for any benefit period that has not ended before March 3, 2002 or that begins on or after that date.

Related Amendments

R.S., c. L-2Canada Labour Code

Marginal note:2000, c. 14, s. 42

17. Subsection 206.1(2) of the Canada Labour Code is replaced by the following:

Marginal note:Period when leave may be taken

(2) The leave of absence may only be taken during the fifty-two week period beginning

(a) in the case of a new-born child of the employee, at the option of the employee, on the day the child is born or comes into the actual care of the employee; and

(b) in the case of an adoption, on the day the child comes into the actual care of the employee.

18. Subsection 206.1(2) of the Act, as enacted by section 43 of the Budget Implementation Act, 2000, chapter 14 of the Statutes of Canada, 2000, is replaced by the following:

Marginal note:Period when leave may be taken

(2) The leave of absence may only be taken during the fifty-two week period beginning

(a) in the case of a child described in paragraph (1)(a), at the option of the employee, on the day the child is born or comes into the actual care of the employee;

(b) in the case of a child described in paragraph (1)(b), on the day the child comes into the actual care of the employee; and

(c) in the case of a child described in paragraph (1)(c), on the day the requirements referred to in that paragraph are met.

Coming into Force

Marginal note:Coming into force

19. (1) Subject to subsection (2), the provisions of this Part or the provisions of any Act enacted by this Part come into force or are deemed to have come into force on a day or days to be fixed by order of the Governor in Council.

Marginal note:Section 16

(2) Despite section 153 of the Employment Insurance Act, section 16 comes into force on a day or days to be fixed by order of the Governor in Council.

PART 4R.S., c. 1 (5th Supp.) INCOME TAX ACT

20. (1) Subsection 6(8) of the Income Tax Act is replaced by the following:

Marginal note:GST rebates re costs of property or service

(8) If

(a) an amount in respect of an outlay or expense is deducted under section 8 in computing the income of a taxpayer for a taxation year from an office or employment, or

(b) an amount is included in the capital cost to a taxpayer of a property described in subparagraph 8(1)(j)(ii) or 8(1)(p)(ii),

and a particular amount is paid to the taxpayer in a particular taxation year as a rebate under the Excise Tax Act in respect of any goods and services tax included in the amount of the outlay or expense, or the capital cost of the property, as the case may be, the particular amount

(c) to the extent that it relates to an outlay or expense referred to in paragraph (a), shall be included in computing the taxpayer’s income from an office or employment for the particular taxation year, and

(d) to the extent that it relates to the capital cost of property referred to in paragraph (b), is deemed, for the purposes of subsection 13(7.1), to have been received by the taxpayer in the particular taxation year as assistance from a government for the acquisition of the property.

(2) Subsection (1) applies to the 2002 and subsequent taxation years.

21. (1) Subsection 8(1) of the Act is amended by striking out the word “and” at the end of paragraph (p), by adding the word “and” at the end of paragraph (q) and by adding the following after paragraph (q):

Marginal note:Apprentice mechanics’ tool costs

(r) if the taxpayer was an eligible apprentice mechanic at any time after 2001 and before the end of the taxation year, the amount claimed by the taxpayer for the taxation year under this paragraph not exceeding the lesser of

(i) the taxpayer’s income for the taxation year computed without reference to this paragraph, and

(ii) the amount determined by the formula

(A - B) + C

where


is the total of all amounts each of which is the cost to the taxpayer of an eligible tool acquired in the taxation year by the taxpayer or, if the taxpayer first becomes employed as an eligible apprentice mechanic in the taxation year, the cost to the taxpayer of an eligible tool acquired by the taxpayer in the last three months of the preceding taxation year,


is the lesser of

(A) the value of A for the taxation year in respect of the taxpayer, and

(B) the greater of $1,000 and 5% of the total of all amounts, each of which is the taxpayer’s income from employment for the taxation year as an eligible apprentice mechanic, computed without reference to this paragraph, and


is the amount by which the amount determined under this subparagraph for the preceding taxation year in respect of the taxpayer exceeds the amount deducted under this paragraph for that preceding taxation year by the taxpayer.

(2) Section 8 of the Act is amended by adding the following after subsection (5):

Marginal note:Apprentice mechanics

(6) For the purpose of paragraph (1)(r),

(a) a taxpayer is an eligible apprentice mechanic in a taxation year if, at any time in the taxation year, the taxpayer

(i) is registered in a program established in accordance with the laws of a province that leads to designation under those laws as a mechanic licensed to repair self-propelled motorized vehicles, and

(ii) is employed as an apprentice mechanic;

(b) an eligible tool is a tool (including ancillary equipment) that

(i) is acquired by a taxpayer for use in connection with the taxpayer’s employment as an eligible apprentice mechanic,

(ii) has not been used for any purpose before it is acquired by the taxpayer, and

(iii) is certified in prescribed form by the taxpayer’s employer to be required to be provided by the taxpayer as a condition of, and for use in, the taxpayer’s employment as an eligible apprentice mechanic; and

(c) a taxpayer who, for a taxation year, is not an eligible apprentice mechanic and has an excess amount determined under the description of C in subparagraph (1)(r)(ii) is, for the taxation year, entitled to claim a deduction under that paragraph as if that excess amount were wholly applicable to an employment of the taxpayer.

Marginal note:Cost of tools of an apprentice mechanic

(7) Except for the purpose of the description of A in subparagraph (1)(r)(ii), the cost to a taxpayer of an eligible tool the cost of which was included in determining the value of that description in respect of the taxpayer for a taxation year is the amount determined by the formula

K- (K × L/M)

where


is the cost to the taxpayer of the tool determined without reference to this subsection;


is the amount that would be determined under subparagraph (1)(r)(ii) in respect of the taxpayer for the taxation year if the value of C in that subparagraph were nil; and


is the value of A determined under subparagraph (1)(r)(ii) in respect of the taxpayer for the taxation year.

(3) Subsections (1) and (2) apply to eligible tools acquired after 2001.

22. (1) The portion of paragraph 38(a.1) of the Act before subparagraph (i) is replaced by the following:

(a.1) a taxpayer’s taxable capital gain for a taxation year from the disposition of any property is + of the taxpayer’s capital gain for the year from the disposition of the property if

(2) Subsection (1) applies to dispositions that occur after 2001.

23. (1) Paragraph 53(2)(m) of the Act is replaced by the following:

(m) any part of the cost to the taxpayer of the property that was deductible (otherwise than because of this subdivision or paragraph 8(1)(r)) in computing the taxpayer’s income for any taxation year commencing before that time and ending after 1971;

(2) Subsection (1) applies after 2001.

24. (1) Subsection 56(1) of the Act is amended by adding the following after paragraph (j):

Marginal note:Apprentice tools, re proceeds

(k) all amounts received in the year by a person or partnership (in this paragraph referred to as the “vendor”) as consideration for the disposition by the vendor of a property the cost of which was included in computing an amount under paragraph 8(1)(r) in respect of the vendor or in respect of a person with whom the vendor does not deal at arm’s length, to the extent that the total of those amounts received in respect of the disposition in the year and in preceding taxation years exceeds the total of the cost to the vendor of the property immediately before the disposition and all amounts included in respect of the disposition under this paragraph in computing the vendor’s income for a preceding taxation year, unless the property was acquired by the vendor in circumstances to which subsection 85(5.1) or subsection 97(5) applied;

(2) Subsection (1) applies to the 2002 and subsequent taxation years.

25. (1) Paragraph 60(n) of the Act is replaced by the following:

Marginal note:Repayment of pension or benefits

(n) any amount paid by the taxpayer in the year as a repayment (otherwise than because of Part VII of the Unemployment Insurance Act, chapter U-1 of the Revised Statutes of Canada, 1985, or of Part VII of the Employment Insurance Act) of any of the following amounts to the extent that the amount was included in computing the taxpayer’s income, and not deducted in computing the taxpayer’s taxable income, for the year or for a preceding taxation year, namely,

(i) a pension described in clause 56(1)(a)(i)(A),

(ii) a benefit described in clause 56(1)(a)(i)(B),

(iii) an amount described in subparagraph 56(1)(a)(ii),

(iv) a benefit described in subparagraph 56(1)(a)(iv),

(v) a benefit described in subparagraph 56(1)(a)(vi), and

(vi) an amount described in paragraph 56(1)(r);

(2) Subsection (1) applies to the 1997 and subsequent taxation years and, notwithstanding subsections 152(4) to (5) of the Act, any assessment of a taxpayer’s tax, interest or penalty for any taxation year shall be made that is necessary to give effect to subsection (1).

26. (1) Subsection 67.1(2) of the Act is amended by striking out the word “or” at the end of paragraph (e) and by adding the following after paragraph (e):

(e.1) is an amount that

(i) is not paid or payable in respect of entertainment or of a conference, convention, seminar or similar event,

(ii) would, if this Act were read without reference to subparagraph 6(6)(a)(i), be required to be included in computing a taxpayer’s income for a taxation year because of the application of section 6 in respect of food or beverages consumed by the taxpayer or by a person with whom the taxpayer does not deal at arm’s length,

(iii) is paid or payable in respect of the taxpayer’s duties performed at a site in Canada at which the person carries on a construction activity or at a construction work camp referred to in subparagraph (iv) in respect of the site, and

(iv) is paid or payable for food or beverages provided at a construction work camp, at which the taxpayer is lodged, that was constructed or installed at or near the site to provide board and lodging to employees while they are engaged in construction services at the site; or

(2) Subsection (1) applies to amounts paid or payable in respect of food and beverages provided after 2001.

27. (1) The portion of subsection 70(9) of the Act before paragraph (a) is replaced by the following:

Marginal note:Transfer of farm property to child

(9) If any land in Canada or depreciable property in Canada of a prescribed class of a taxpayer to which subsection (5) would otherwise apply was, before the taxpayer’s death, used principally in a farming business in which the taxpayer, the taxpayer’s spouse or common-law partner or any of the taxpayer’s children was actively engaged on a regular and continuous basis (or, in the case of property used in the operation of a woodlot, was engaged to the extent required by a prescribed forest management plan in respect of that woodlot), the property is, as a consequence of the death, transferred or distributed to a child of the taxpayer who was resident in Canada immediately before the death and it can be shown, within the period ending 36 months after the death or, if written application that this subsection apply has been made to the Minister by the taxpayer’s legal representative within that period, within any longer period that the Minister considers reasonable in the circumstances, that the property has vested indefeasibly in the child,

(2) Subparagraph 70(9.3)(b)(i) of the Act is replaced by the following:

(i) a share in the capital stock of a Canadian corporation that would be a share in the capital stock of a family farm corporation if paragraph (a) of the definition “share of the capital stock of a family farm corporation” in subsection (10) were read without the words “in which the person or a spouse, common-law partner, child or parent of the person was actively engaged on a regular and continuous basis (or, in the case of property used in the operation of a woodlot, was engaged to the extent required by a prescribed forest management plan in respect of that woodlot)”, or

(3) The portion of paragraph (a) of the definition “interest in a family farm partnership” in subsection 70(10) of the Act after subparagraph (iv) is replaced by the following:

principally in the course of carrying on a farming business in Canada in which the person or a spouse, common-law partner, child or parent of the person was actively engaged on a regular and continuous basis (or, in the case of property used in the operation of a woodlot, was engaged to the extent required by a prescribed forest management plan in respect of that woodlot),

(4) The portion of paragraph (a) of the definition “share of the capital stock of a family farm corporation” in subsection 70(10) of the Act after subparagraph (iv) is replaced by the following:

principally in the course of carrying on a farming business in Canada in which the person or a spouse, common-law partner, child or parent of the person was actively engaged on a regular and continuous basis (or, in the case of property used in the operation of a woodlot, was engaged to the extent required by a prescribed forest management plan in respect of that woodlot),

(5) Subsection (1) applies to transfers of property that occur as a consequence of deaths that occur after December 10, 2001.

(6) Subsection (2) applies to transfers and distributions of property that occur after December 10, 2001.

(7) Subsections (3) and (4) apply to transfers of property that occur after December 10, 2001.

28. (1) The portion of subsection 73(3) of the Act before paragraph (a) is replaced by the following:

Marginal note:Inter vivos transfer of farm property to child

(3) For the purposes of this Part, if at any time any land in Canada or depreciable property in Canada of a prescribed class of a taxpayer or any eligible capital property in respect of a business carried on in Canada by a taxpayer is transferred by the taxpayer to a child of the taxpayer who was resident in Canada immediately before the transfer, and the property was, before the transfer, used principally in a farming business in which the taxpayer, the taxpayer’s spouse or common-law partner or any of the taxpayer’s children was actively engaged on a regular and continuous basis (or, in the case of property used in the operation of a woodlot, was engaged to the extent required by a prescribed forest management plan in respect of that woodlot),

(2) Subsection (1) applies to transfers of property that occur after December 10, 2001.

29. (1) Section 85 of the Act is amended by adding the following after subsection (5):

Marginal note:Acquisition of apprentice tools, re capital cost and deemed depreciation

(5.1) If subsection (1) has applied in respect of the acquisition at any particular time of any depreciable property by a corporation from an individual, the cost of the property to the individual was included in computing an amount under paragraph 8(1)(r) in respect of the individual, and the amount that would be the cost of the property to the individual immediately before the transfer if this Act were read without reference to subsection 8(7) (which amount is in this subsection referred to as the “individual’s original cost”) exceeds the individual’s proceeds of disposition of the property,

(a) the capital cost to the corporation of the property is deemed to be equal to the individual’s original cost; and

(b) the amount by which the individual’s original cost exceeds the individual’s proceeds of disposition in respect of the property is deemed to have been deducted by the corporation under paragraph 20(1)(a) in respect of the property in computing income for taxation years that ended before that particular time.

(2) Subsection (1) applies to dispositions that occur after 2001.

30. (1) Paragraph 87(2)(j.92) of the Act is replaced by the following:

Marginal note:Subsections 125(5.1) and 157.1(1)

(j.92) for the purposes of subsection 125(5.1) and the definition “eligible corporation” in subsection 157.1(1), the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation;

(2) The portion of paragraph 87(2)(oo.1) of the Act before subparagraph (i) is replaced by the following:

Marginal note:Refundable investment tax credit and balance-due day

(oo.1) for the purpose of applying the definition “qualifying corporation” in subsection 127.1(2), and subparagraph (d)(i) of the definition “balance-due day” in subsection 248(1), to any corporation, the new corporation is deemed to have had

(3) Subsections (1) and (2) apply to taxation years that end after 2001.

31. (1) The portion of paragraph 88(1)(e.9) of the Act before subparagraph (i) is replaced by the following:

(e.9) for the purpose of applying the definition “qualifying corporation” in subsection 127.1(2), and subparagraph (d)(i) of the definition “balance-due day” in subsection 248(1), to any corporation (other than the subsidiary)

(2) Subsection (1) applies to taxation years that end after 2001.

32. (1) Section 97 of the Act is amended by adding the following after subsection (4):

Marginal note:Acquisition of apprentice tools, re capital cost and deemed depreciation

(5) If subsection (2) has applied in respect of the acquisition at any particular time of any depreciable property by a partnership from an individual, the cost of the property to the individual was included in computing an amount under paragraph 8(1)(r) in respect of the individual, and the amount that would be the cost of the property to the individual immediately before the transfer if this Act were read without reference to subsection 8(7) (which amount is in this subsection referred to as the “individual’s original cost”) exceeds the individual’s proceeds of disposition of the property,

(a) the capital cost to the partnership of the property is deemed to be equal to the individual’s original cost; and

(b) the amount by which the individual’s original cost exceeds the individual’s proceeds of disposition in respect of the property is deemed to have been deducted by the partnership under paragraph 20(1)(a) in respect of the property in computing income for taxation years that ended before that particular time.

(2) Subsection (1) applies to dispositions that occur after 2001.

33. (1) Subparagraph 110(1)(d.01)(ii) of the Act is repealed.

(2) Subsection 110(1) of the Act is amended by adding the following after paragraph (f):

Marginal note:Financial assistance

(g) any amount that

(i) is received by the taxpayer in the year under a program referred to in subparagraph 56(1)(r)(ii) or (iii), a program established under the authority of the Department of Human Resources Development Act or a prescribed program,

(ii) is financial assistance for the payment of tuition fees of the taxpayer that are not included in computing an amount deductible under subsection 118.5(1) in computing the taxpayer’s tax payable under this Part for any taxation year,

(iii) is included in computing the taxpayer’s income for the year, and

(iv) is not otherwise deductible in computing the taxpayer’s taxable income for the year;

(3) Subsection (1) applies to dispositions that occur after 2001.

(4) Paragraph 110(1)(g) of the Act, as enacted by subsection (2), applies to the 1997 and subsequent taxation years and, notwithstanding subsections 152(4) to (5) of the Act, any assessment of a taxpayer’s tax, interest or penalty for any taxation year shall be made that is necessary to give effect to that paragraph.

34. (1) The description of E in the definition “non-capital loss” in subsection 111(8) of the Act is replaced by the following:


is the total of all amounts each of which is the taxpayer’s loss for the year from an office, employment, business or property, the taxpayer’s allowable business investment loss for the year, an amount deducted under paragraph (1)(b) or section 110.6 in computing the taxpayer’s taxable income for the year or an amount that may be deducted under any of paragraphs 110(1)(d) to (d.3), (f), (g), (j) and (k), section 112 and subsections 113(1) and 138(6) in computing the taxpayer’s taxable income for the year, and

(2) Subsection (1) applies to the 1997 and subsequent taxation years and, notwithstanding subsections 152(4) to (5) of the Act, any assessment of a taxpayer’s tax, interest or penalty for any taxation year shall be made that is necessary to give effect to subsection (1).

35. (1) The definition “qualified non-resident” in subsection 115.2(1) of the Act is repealed.

(2) The definitions “designated investment services” and “promoter” in subsection 115.2(1) of the Act are replaced by the following:

“designated investment services”

« services de placement déterminés »

“designated investment services” provided to a person or partnership means any one or more of the services described in the following paragraphs:

(a) investment management and advice with respect to qualified investments, regardless of whether the manager has discretionary authority to buy or sell;

(b) purchasing and selling qualified investments, exercising rights incidental to the ownership of qualified investments such as voting, conversion and exchange, and entering into and executing agreements with respect to such purchasing and selling and the exercising of such rights;

(c) investment administration services, such as receiving, delivering and having custody of investments, calculating and reporting investment values, receiving subscription amounts from, and paying distributions and proceeds of disposition to, investors in and beneficiaries of the person or partnership, record keeping, accounting and reporting to the person or partnership and its investors and beneficiaries; and

(d) in the case of a corporation, trust or partnership the only undertaking of which is the investing of its funds in qualified investments, marketing investments in the corporation, trust or partnership to non-resident investors.

“promoter”

« promoteur »

“promoter” of a corporation, trust or partnership means a particular person or partnership that initiates or directs the founding, organization or substantial reorganization of the corporation, trust or partnership, and a person or partnership that is affiliated with the particular person or partnership.

(3) The portion of the definition “qualified investment” in subsection 115.2(1) of the Act before subparagraph (a)(ii) is replaced by the following:

“qualified investment”

« placement admissible »

“qualified investment” of a person or partnership means

(a) a share of the capital stock of a corporation, or an interest in a partnership, trust, entity, fund or organization, other than a share or an interest

(i) that is either

(A) not listed on a prescribed stock exchange, or

(B) listed on a prescribed stock exchange, if the person or partnership, together with all persons with whom the person or partnership does not deal at arm’s length, owns 25% or more of the issued shares of any class of the capital stock of the corporation or of the total value of interests in the partnership, entity, trust, fund or organization, as the case may be, and

(4) Subsection 115.2(1) of the Act is amended by adding the following in alphabetical order:

“Canadian investor”

« investisseur canadien »

“Canadian investor”, at any time in respect of a non-resident person, means a person that the non-resident person knows, or ought to know after reasonable inquiry, is at that time resident in Canada.

(5) Subsection 115.2(2) of the Act is replaced by the following:

Marginal note:Not carrying on business in Canada

(2) For the purposes of subsection 115(1) and Part XIV, 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

(a) in the case of services provided to a non-resident individual other than a trust, the individual is not affiliated at the particular time with the Canadian service provider;

(b) in the case of services provided to a non-resident person that is a corporation or trust,

(i) the person has not, before the particular time, directly or through its agents,

(A) directed any promotion of investments in itself principally at Canadian investors, or

(B) sold an investment in itself that is outstanding at the particular time to a person who was a Canadian investor at the time of the sale and who is a Canadian investor at the particular time,

(ii) the person has not, before the particular time, directly or through its agents, filed any document with a public authority in Canada in accordance with the securities legislation of Canada or of any province in order to permit the distribution of interests in the person to persons resident in Canada, and

(iii) when the particular time is more than one year after the time at which the person was created, the total of the fair market value, at the particular time, of investments in the person that are beneficially owned by persons and partnerships (other than a designated entity in respect of the Canadian service provider) that are affiliated with the Canadian service provider does not exceed 25% of the fair market value, at the particular time, of all investments in the person; and

(c) in the case of services provided to a partnership of which the non-resident person is a member,

(i) the particular time is not more than one year after the partnership was formed, or

(ii) the total of the fair market value, at the particular time, of investments in the partnership that are beneficially owned by persons and partnerships (other than a designated entity in respect of the Canadian service provider) that are affiliated with the Canadian service provider does not exceed 25% of the fair market value, at the particular time, of all investments in the partnership.

(6) Subsection 115.2(4) of the Act is replaced by the following:

Marginal note:Transfer pricing

(4) For the purpose of section 247, where subsection (2) applies in respect of services provided to a person that is a corporation or trust or to a partnership, if the Canadian service provider referred to in that subsection does not deal at arm’s length with the promoter of the person or of the partnership, the service provider is deemed not to deal at arm’s length with the person or partnership.

(7) Subsections (1) to (3) and (5) and (6) apply to the 2002 and subsequent taxation years.

(8) Subsection (4) applies to the 1999 and subsequent taxation years except that, in applying the definition “Canadian investor”, as enacted by that subsection, to taxation years that end after 1998 and before 2002, that definition shall be read as follows:

“Canadian investor”

“Canadian investor”, at any time in respect of a qualified non-resident, means

(a) a person that the non-resident knows, or ought to know after reasonable inquiry, is at that time resident in Canada; and

(b) a partnership that the non-resident knows, or ought to know after reasonable inquiry, has a member that is at that time resident in Canada.

(9) In applying subparagraph 115.2(2)(b)(i) of the Act, as enacted by subsection 21(1) of the Income Tax Amendments Act, 1999, chapter 19 of the Statutes of Canada, 2000, to taxation years that end after 1998 and before 2002, that subparagraph shall be read as follows:

(i) the non-resident has not, before the particular time, directly or through its agents,

(A) directed any promotion of investments in itself principally at Canadian investors, or

(B) sold an investment in itself that is outstanding at the particular time to a person who was a Canadian investor at the time of the sale and who is a Canadian investor at the particular time,

36. (1) Paragraph (a) of the definition “qualifying educational program” in subsection 118.6(1) of the Act is amended by striking out the word “or” at the end of subparagraph (i) and by adding the following after subparagraph (ii):

(iii) an amount that is received by the student in the year under a program referred to in subparagraph 56(1)(r)(ii) or (iii), a program established under the authority of the Department of Human Resources Development Act or a prescribed program, or

(2) Subsection (1) applies to the 2002 and subsequent taxation years.

37. (1) Subparagraph 122.3(1)(e)(iii) of the Act is replaced by the following:

(iii) the total of all amounts each of which is an amount deducted under section 110.6 or paragraph 111(1)(b), or deductible under paragraph 110(1)(d.2), (d.3), (f), (g) or (j), in computing the individual’s taxable income for the year.

(2) Subsection (1) applies to the 1997 and subsequent taxation years except that, for the 1997 taxation year, subparagraph 122.3(1)(e)(iii) of the Act, as enacted by subsection (1), shall be read as follows:

(iii) the total of all amounts each of which is an amount deducted by the individual under section 110.6 or paragraph 111(1)(b), or deductible by the individual under paragraph 110(1)(d.2), (d.3), (f), (g) or (j), for the year or in respect of the period or periods referred to in subparagraph (ii), as the case may be.

(3) Notwithstanding subsections 152(4) to (5) of the Act, any assessment of a taxpayer’s tax, interest or penalty for any taxation year shall be made that is necessary to give effect to subsection (1) or (2).

38. (1) Subsections 122.5(1) to (3.1) of the Act are replaced by the following:

Marginal note:Definitions

122.5 (1) The following definitions apply in this section.

“adjusted income”

« revenu rajusté »

“adjusted income” of an individual, for a taxation year in relation to a month specified for the taxation year, means the total of the individual’s income for the taxation year and the income for the taxation year of the individual’s qualified relation, if any, in relation to the specified month, both calculated as if no amount were included in respect of any gain from a disposition of property to which section 79 applies.

“cohabiting spouse or common-law partner”

« époux ou conjoint de fait visé »

“cohabiting spouse or common-law partner” of an individual at any time has the meaning assigned by section 122.6.

“eligible individual”

« particulier admissible »

“eligible individual”, in relation to a month specified for a taxation year, means an individual (other than a trust) who

(a) has, before the specified month, attained the age of 19 years; or

(b) was, at any time before the specified month,

(i) a parent who resided with their child, or

(ii) married or in a common-law partnership.

“qualified dependant”

« personne à charge admissible »

“qualified dependant” of an individual, in relation to a month specified for a taxation year, means a person who at the beginning of the specified month

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

(b) resides with the individual;

(c) is under the age of 19 years;

(d) is not an eligible individual in relation to the specified month; and

(e) is not a qualified relation of any individual in relation to the specified month.

“qualified relation”

« proche admissible »

“qualified relation” of an individual, in relation to a month specified for a taxation year, means the person, if any, who, at the beginning of the specified month, is the individual’s cohabiting spouse or common-law partner.

“return of income”

« déclaration de revenu »

“return of income”, in respect of a person for a taxation year, means

(a) for a person who is resident in Canada at the end of the taxation year, the person’s return of income (other than a return of income under subsection 70(2) or 104(23), paragraph 128(2)(e) or subsection 150(4)) that is required to be filed for the taxation year or that would be required to be filed if the person had tax payable under this Part for the taxation year; and

(b) in any other case, a prescribed form containing prescribed information that is filed for the taxation year with the Minister.

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

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

(a) died before the specified month;

(b) is confined to a prison or similar institution for a period of at least 90 days that includes the first day of the specified month;

(c) is at the beginning of the specified month a non-resident person, other than a non-resident person who

(i) is at that time the cohabiting spouse or common-law partner of a person who is deemed under subsection 250(1) to be resident in Canada throughout the taxation year that includes the first day of the specified month, and

(ii) was resident in Canada at any time before the specified month;

(d) is at the beginning of the specified month a person described in paragraph 149(1)(a) or (b); or

(e) is a person in respect of whom a special allowance under the Children’s Special Allowances Act is payable for the specified month.

Marginal note:Deemed payment on account of tax

(3) An eligible individual in relation to a month specified for a taxation year who files a return of income for the taxation year and applies for an amount under this subsection is deemed to have paid during the specified month on account of their tax payable under this Part for the taxation year an amount equal to 1/4 of the amount, if any, determined by the formula

A - B

where


is the total of

(a) $213,

(b) $213 for the qualified relation, if any, of the individual in relation to the specified month,

(c) if the individual has no qualified relation in relation to the specified month and is entitled to deduct an amount for the taxation year under subsection 118(1) because of paragraph (b) of the description of B in that subsection in respect of a qualified dependant of the individual in relation to the specified month, $213,

(d) $112 times the number of qualified dependants of the individual in relation to the specified month, other than a qualified dependant in respect of whom an amount is included under paragraph (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, $112, and

(f) if the individual has no qualified relation and no qualified dependant, in relation to the specified month, the lesser of $112 and 2% of the amount, if any, by which the individual’s income for the taxation year exceeds $6,911; and


is 5% of the amount, if any, by which the individual’s adjusted income for the taxation year in relation to the specified month exceeds $27,749.

Marginal note:When advance payment applies

(3.1) Subsection (3.2) applies in respect of an eligible individual in relation to a particular month specified for a taxation year, and each subsequent month specified for the taxation year, if

(a) the amount deemed by that subsection to have been paid by the eligible individual during the particular month specified for the taxation year is less than $25; and

(b) it is reasonable to conclude that the amount deemed by that subsection to have been paid by the eligible individual during each subsequent month specified for the taxation year will be less than $25.

Marginal note:Advance payment

(3.2) If this subsection applies, the total of the amounts that would otherwise be deemed by subsection (3) to have been paid on account of the eligible individual’s tax payable under this Part for the taxation year during the particular month specified for the taxation year, and during each subsequent month specified for the taxation year, is deemed to have been paid by the eligible individual on account of their tax payable under this Part for the taxation year during the particular specified month for the taxation year, and the amount deemed by subsection (3) to have been paid by the eligible individual during those subsequent 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.

(2) Subsections 122.5(5) to (6) of the Act are replaced by the following:

Marginal note:Only one eligible individual

(5) If an individual is a qualified relation of another individual, in relation to a month specified for a taxation year, only one of them is an eligible individual in relation to that specified month, and if both of them claim to be eligible individuals, the individual that the Minister designates is the eligible individual in relation to that specified month.

Marginal note:Exception re qualified dependant

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

(a) the person is deemed to be a qualified dependant, in relation to that month, of the one of those individuals on whom those individuals agree;

(b) in the absence of an agreement referred to in paragraph (a), the person is deemed to be, in relation to that month, a qualified dependant of the individual, if any, who is, at the beginning of that month, an eligible individual within the meaning assigned by section 122.6 in respect of the person; and

(c) in any other case, the person is deemed to be, in relation to that month, a qualified dependant only of the individual that the Minister designates.

Marginal note:Notification to Minister

(6.1) An individual shall notify the Minister of the occurrence of any of the following events before the end of the month following the month in which the event occurs:

(a) the individual ceases to be an eligible individual;

(b) a person becomes or ceases to be the individual’s qualified relation; and

(c) a person ceases to be a qualified dependant of the individual, otherwise than because of attaining the age of 19 years.

Marginal note:Non-residents and part-year residents

(6.2) For the purpose of this section, the income of a person who is non-resident at any time in a taxation year is deemed to be equal to the amount that would, if the person were resident in Canada throughout the year, be the person’s income for the year.

(3) Subsections (1) and (2) apply to amounts that are deemed to be paid during months specified for the 2001 and subsequent taxation years.

39. (1) Subclause 126(1)(b)(ii)(A)(III) of the Act is replaced by the following:

(III) the total of all amounts each of which is an amount deducted under section 110.6 or paragraph 111(1)(b), or deductible under any of paragraphs 110(1)(d) to (d.3), (f), (g) and (j) and sections 112 and 113, in computing the taxpayer’s taxable income for the year, and

(2) Subclause 126(2.1)(a)(ii)(A)(III) of the Act is replaced by the following:

(III) the total of all amounts each of which is an amount deducted under section 110.6 or paragraph 111(1)(b), or deductible under any of paragraphs 110(1)(d) to (d.3), (f), (g) and (j) and sections 112 and 113, in computing the taxpayer’s taxable income for the year, and

(3) Subparagraph 126(3)(b)(iii) of the Act is replaced by the following:

(iii) the total of all amounts each of which is an amount deducted under section 110.6 or paragraph 111(1)(b), or deductible under any of paragraphs 110(1)(d) to (d.3), (f), (g) and (j), in computing the taxpayer’s taxable income for the year,

(4) Subsections (1) to (3) apply to the 1997 and subsequent taxation years except that, for the 1997 taxation year

(a) subclause 126(1)(b)(ii)(A)(III) of the Act, as enacted by subsection (1), shall be read as follows:

(III) the total of all amounts each of which is an amount deducted by the taxpayer under section 110.6 or paragraph 111(1)(b), or deductible by the taxpayer under paragraph 110(1)(d), (d.1), (d.2), (d.3), (f), (g) or (j) or section 112 or 113, for the year or in respect of the period or periods referred to in subclause (II), as the case may be, and

(b) subclause 126(2.1)(a)(ii)(A)(III) of the Act, as enacted by subsection (2), shall be read as follows:

(III) the total of all amounts each of which is an amount deducted by the taxpayer under section 110.6 or paragraph 111(1)(b), or deductible by the taxpayer under paragraph 110(1)(d), (d.1), (d.2), (d.3), (f), (g) or (j) or section 112 or 113, for the year or in respect of the period or periods referred to in subclause (II), as the case may be, and

and

(c) subparagraph 126(3)(b)(iii) of the Act, as enacted by subsection (3), shall be read as follows:

(iii) the total of all amounts each of which is an amount deducted under section 110.6 or paragraph 111(1)(b), or deductible under paragraph 110(1)(d), (d.1), (d.2), (d.3), (f), (g) or (j), in computing the individual’s taxable income for the year or in respect of the period or periods referred to in subparagraph (ii), as the case may be,

(5) Notwithstanding subsections 152(4) to (5) of the Act, any assessment of a taxpayer’s tax, interest or penalty for any taxation year shall be made that is necessary to give effect to any of subsections (1) to (4)

40. (1) Paragraph 127.52(1)(h) of the Act is amended by striking out the word “and” at the end of subparagraph (iv), by adding the word “and” at the end of subparagraph (v) and by adding the following after subparagraph (v):

(vi) the amount deducted under paragraph 110(1)(g);

(2) Subsection (1) applies to the 1997 and subsequent taxation years and, notwithstanding subsections 152(4) to (5) of the Act, any assessment of a taxpayer’s tax, interest or penalty for any taxation year shall be made that is necessary to give effect to subsection (1).

41. (1) Paragraph 157(1)(b) of the Act is replaced by the following:

(b) the remainder of the taxes payable by it under this Part and Parts I.3, VI, VI.1 and XIII.1 for the year on or before its balance-due day for the year.

(2) Subsection (1) applies to taxation years that end after 2001.

42. (1) The Act is amended by adding the following after section 157:

Marginal note:Instalment deferral for January, February and March 2002 — definitions

157.1 (1) The following definitions apply in this section.

“eligible corporation”

« société admissible »

“eligible corporation”, for a particular taxation year, means a corporation

(a) that is resident in Canada throughout the particular taxation year; and

(b) of which the taxable capital employed in Canada, within the meaning assigned by Part I.3, for its preceding taxation year did not exceed,

(i) if the corporation is not associated with any other corporation in the particular taxation year, $15 million, and

(ii) if the corporation is associated with one or more other corporations in the particular taxation year, the amount by which $15 million exceeds the total of the taxable capital employed in Canada, within the meaning assigned by Part I.3, of those other corporations for their last taxation years that ended in the last calendar year that ended before the end of the particular taxation year.

“eligible instalment day”

« jour admissible »

“eligible instalment day” of an eligible corporation means a day in January, February or March, 2002, on which an instalment on account of the corporation’s tax payable under this Part for the taxation year that includes that day would become payable

(a) if this Act were read without reference to this section; and

(b) if, in the case of a corporation that is not required by section 157 to make instalment payments on account of its tax payable under this Part for the taxation year, it were so required.

Marginal note:Deferred balance-due day

(2) An eligible corporation’s balance-due day for a taxation year that ends after 2001 is deemed to be the later of

(a) the day that would otherwise be the corporation’s balance-due day for the taxation year, and

(b) the day that is six months after the corporation’s last eligible instalment day in the taxation year.

Marginal note:Deferred instalment day

(3) An amount that would, because of paragraph 157(1)(a), otherwise become payable in respect of a taxation year by an eligible corporation on an eligible instalment day of the corporation does not become payable on that day but becomes payable

(a) if the particular day that is six months after the eligible instalment day is in the taxation year, on the particular day; and

(b) in any other case, on the day that is deemed by subsection (2) to be the corporation’s balance-due day for the taxation year.

(2) Subsection (1) applies to taxation years that end after 2001.

43. (1) Subsection 160.1(1.1) of the Act is replaced by the following:

Marginal note:Liability for refund by reason of s. 122.5

(1.1) If a person is a qualified relation of an individual (within the meaning assigned by subsection 122.5(1)), in relation to one or more months specified for a taxation year, the person and the individual are jointly and severally, or solidarily, liable to pay the lesser of

(a) any excess described in subsection (1) that was refunded in respect of the taxation year to, or applied to a liability of, the individual as a consequence of the operation of section 122.5, and

(b) the total of the amounts deemed by subsection 122.5(3) to have been paid by the individual during those specified months.

Marginal note:Liability under other provisions

(2) Subsection (1.1) does not limit a person’s liability under any other provision of this Act.

(2) Subsection (1) applies to amounts deemed to be paid during months specified for the 2001 and subsequent taxation years.

44. (1) Paragraph (d) of the definition “balance-due day” in subsection 248(1) of the Act is replaced by the following:

(d) where the taxpayer is a corporation,

(i) the day that is three months after the day on which the taxation year (in this subparagraph referred to as the “current year”) ends, if

(A) an amount was deducted under section 125 in computing the corporation’s tax payable under this Part for the current year or for its preceding taxation year,

(B) the corporation is, throughout the current year, a Canadian-controlled private corporation, and

(C) either

(I) in the case of a corporation that is not associated with another corporation in the current year, its taxable income for its preceding taxation year (determined before taking into consideration the specified future tax consequences for that preceding taxation year) does not exceed its business limit for that preceding taxation year, or

(II) in the case of a corporation that is associated with one or more other corporations in the current year, the total of the taxable incomes of the corporation and of those other corporations for their last taxation years that ended in the last calendar year that ended before the end of the current year (determined before taking into consideration the specified future tax consequences for those last taxation years) does not exceed the total of the business limits of the corporation and of those other corporations for those last taxation years, and

(ii) the day that is two months after the day on which the taxation year ends, in any other case;

(2) Subsection (1) applies to taxation years that end after 2001.

PART 5 CANADA FUND FOR AFRICA

Canada Fund for Africa Act

45. The Canada Fund for Africa Act is enacted as follows:

An Act to establish a program to provide contributions for the economic and social development of Africa in fulfilment of the objectives set out in the New Partnership for Africa’s Development

Marginal note:Short title

1. This Act may be cited as the Canada Fund for Africa Act.

Definition of “Minister”

2. In this Act, “Minister” means the member of the Queen’s Privy Council for Canada who is designated by the Governor in Council as the Minister for the purposes of this Act.

Marginal note:Establishment of program

3. (1) There is hereby established a program, to be called the Canada Fund for Africa, the object of which is to provide for the payment of contributions to eligible recipients for the carrying out of eligible activities.

Marginal note:Eligible activities

(2) An eligible activity is an activity that is, or is to be, conducted by an eligible recipient and that, in the opinion of the Minister, significantly promotes the fulfilment of the objectives set out in the New Partnership for Africa’s Development, adopted as the New Africa Initiative by the Organization of African Unity at Lusaka in July 2001 and, in particular, those objectives that were identified for support in the Africa Action Plan called for by the Group of Eight industrialized countries in Genoa in July 2001 and that are adopted by the Group of Eight at its summit scheduled at Kananaskis in June 2002.

Marginal note:Eligible recipients

(3) A foreign government, an agency of a foreign government, an international organization, a corporation, a partnership or a trust is an eligible recipient if it carries on or, in the opinion of the Minister, is capable of carrying on an eligible activity.

Marginal note:Contribution agreements

4. The Minister may enter into an agreement with an eligible recipient to provide for the payment of a contribution for an eligible activity under this Act.

Marginal note:Regulations

5. The Governor in Council may make regulations generally for the carrying out of the purposes and provisions of this Act, including regulations establishing additional terms and conditions for the Fund.

Coming into Force

Marginal note:Coming into force

46. The provisions enacted by section 45 come into force on a day or days to be fixed by order of the Governor in Council.

PART 6 CANADA STRATEGIC INFRASTRUCTURE FUND

47. The Canada Strategic Infrastructure Fund Act is enacted as follows:

An Act to establish a program to provide contributions for the carrying out of strategic infrastructure projects

Marginal note:Short title

1. This Act may be cited as the Canada Strategic Infrastructure Fund Act.

Marginal note:Definitions

2. The definitions in this section apply in this Act.

“eligible project”

« travaux admissibles »

“eligible project” means a large-scale project for the construction, renewal or material enhancement of strategic infrastructure that is carried out, or to be carried out, by an eligible recipient.

“Minister”

« ministre »

“Minister” means the member of the Queen’s Privy Council for Canada who is designated by the Governor in Council as the Minister for the purposes of this Act.

“strategic infrastructure”

« infrastructure stratégique »

“strategic infrastructure” means any of the following fixed capital assets that are used or operated for the benefit of the public:

(a) highway or rail infrastructure;

(b) local transportation infrastructure;

(c) tourism or urban development infrastructure;

(d) sewage treatment infrastructure;

(e) water infrastructure; or

(f) infrastructure prescribed by regulation.

Marginal note:Establishment of program

3. (1) There is hereby established a program, to be called the Canada Strategic Infrastructure Fund, the object of which is to provide for the payment of contributions to eligible recipients for the carrying out of large-scale strategic infrastructure projects that contribute to economic growth or quality of life in Canada and that advance Canada’s objectives with respect to infrastructure.

Marginal note:Public-private partnerships

(2) The Fund shall, where appropriate, promote the use of partnerships between public and private sector bodies.

Marginal note:Eligible recipients

(3) The following are eligible recipients:

(a) a province or a municipal or regional government established by or under provincial legislation;

(b) a public sector body that is established by or under provincial legislation or by regulation or is wholly owned by a province or a private sector body that is in partnership with a province or a government referred to in paragraph (a), if the body

(i) carries out or, in the opinion of the Minister, is capable of carrying out an eligible project in Canada, and

(ii) has legal capacity, or is composed of organizations each of which has legal capacity; and

(c) a private sector body that

(i) carries out or, in the opinion of the Minister, is capable of carrying out an eligible project in Canada, and

(ii) has legal capacity, or is composed of organizations each of which has legal capacity.

Marginal note:Contribution agreements

4. The Minister may enter into an agreement with an eligible recipient to provide for the payment of a contribution for an eligible project under this Act.

Marginal note:Regulations

5. The Governor in Council may make regulations generally for the carrying out of the purposes and provisions of this Act, including regulations

(a) prescribing other fixed capital assets for the purpose of paragraph (f) of the definition “strategic infrastructure” in section 2;

(b) defining what constitutes a large-scale project; and

(c) establishing additional terms and conditions for the Fund.
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