Economic Action Plan 2013 Act, No. 2

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Economic Action Plan 2013 Act, No. 2

S.C. 2013, c. 40

Assented to 2013-12-12

A second act to implement certain provisions of the budget tabled in Parliament on March 21, 2013 and other measures

SUMMARY

Part 1 implements certain income tax measures proposed in the March 21, 2013 budget. Most notably, it

(a) increases the lifetime capital gains exemption to $800,000 and indexes the new limit to inflation;

(b) streamlines the process for pension plan administrators to refund a contribution made to a Registered Pension Plan as a result of a reasonable error;

(c) extends the reassessment period for reportable tax avoidance transactions and tax shelters when information returns are not filed properly and on time;

(d) phases out the federal Labour-Sponsored Venture Capital Corporations tax credit;

(e) ensures that derivative transactions cannot be used to convert fully taxable ordinary income into capital gains taxed at a lower rate;

(f) ensures that the tax consequences of disposing of a property cannot be avoided by entering into transactions that are economically equivalent to a disposition of the property;

(g) ensures that the tax attributes of trusts cannot be inappropriately transferred among arm’s length persons;

(h) responds to the Sommerer decision to restore the intended tax treatment with respect to non-resident trusts;

(i) expands eligibility for the accelerated capital cost allowance for clean energy generation equipment to include a broader range of biogas production equipment and equipment used to treat gases from waste;

(j) imposes a penalty in instances where information on tax preparers and billing arrangements is missing, incomplete or inaccurate on Scientific Research and Experimental Development tax incentive program claim forms;

(k) phases out the accelerated capital cost allowance for capital assets used in new mines and certain mine expansions, and reduces the deduction rate for pre-production mine development expenses;

(l) adjusts the five-year phase-out of the additional deduction for credit unions;

(m) eliminates unintended tax benefits in respect of two types of leveraged life insurance arrangements;

(n) clarifies the restricted farm loss rules and increases the restricted farm loss deduction limit;

(o) enhances corporate anti-loss trading rules to address planning that avoids those rules;

(p) extends, in certain circumstances, the reassessment period for taxpayers who have failed to correctly report income from a specified foreign property on their annual income tax return;

(q) extends the application of Canada’s thin capitalization rules to Canadian resident trusts and non-resident entities; and

(r) introduces new administrative monetary penalties and criminal offences to deter the use, possession, sale and development of electronic suppression of sales software that is designed to falsify records for the purpose of tax evasion.

Part 1 also implements other selected income tax measures. Most notably, it

(a) implements measures announced on July 25, 2012, including measures that

(i) relate to the taxation of specified investment flow-through entities, real estate investment trusts and publicly-traded corporations, and

(ii) respond to the Lewin decision;

(b) implements measures announced on December 21, 2012, including measures that relate to

(i) the computation of adjusted taxable income for the purposes of the alternative minimum tax,

(ii) the prohibited investment and advantage rules for registered plans, and

(iii) the corporate reorganization rules; and

(c) clarifies that information may be provided to the Department of Employment and Social Development for a program for temporary foreign workers.

Part 2 implements certain goods and services tax and harmonized sales tax (GST/HST) measures proposed in the March 21, 2013 budget by

(a) introducing new administrative monetary penalties and criminal offences to deter the use, possession, sale and development of electronic suppression of sales software that is designed to falsify records for the purpose of tax evasion; and

(b) clarifying that the GST/HST provision, exempting supplies by a public sector body (PSB) of a property or a service if all or substantially all of the supplies of the property or service by the PSB are made for free, does not apply to supplies of paid parking.

Part 3 enacts and amends several Acts in order to implement various measures.

Division 1 of Part 3 amends the Employment Insurance Act to extend and expand a temporary measure to refund a portion of employer premiums for small businesses. It also amends that Act to modify the Employment Insurance premium rate-setting mechanism, including setting the 2015 and 2016 rates and requiring that the rate be set on a seven-year break-even basis by the Canada Employment Insurance Commission beginning with the 2017 rate. The Division repeals the Canada Employment Insurance Financing Board Act and related provisions of other Acts. Lastly, it makes technical amendments to the Employment Insurance (Fishing) Regulations.

Division 2 of Part 3 amends the Trust and Loan Companies Act, the Bank Act and the Insurance Companies Act to remove the prohibition against federal and provincial Crown agents and federal and provincial government employees being directors of a federally regulated financial institution. It also amends the Office of the Superintendent of Financial Institutions Act and the Financial Consumer Agency of Canada Act to remove the obligation of certain persons to give the Minister of Finance notice of their intent to borrow money from a federally regulated financial institution or from a corporation that has deposit insurance under the Canada Deposit Insurance Corporation Act.

Division 3 of Part 3 amends the Trust and Loan Companies Act, the Bank Act, the Insurance Companies Act and the Cooperative Credit Associations Act to clarify the rules for certain indirect acquisitions of foreign financial institutions.

Division 4 of Part 3 amends the Criminal Code to update the definition “passport” in subsection 57(5) and also amends the Department of Foreign Affairs, Trade and Development Act to update the reference to the Minister in paragraph 11(1)(a).

Division 5 of Part 3 amends the Canada Labour Code to amend the definition of “danger” in subsection 122(1), to modify the refusal to work process, to remove all references to health and safety officers and to confer on the Minister of Labour their powers, duties and functions. It also makes consequential amendments to the National Energy Board Act, the Hazardous Materials Information Review Act and the Non-smokers’ Health Act.

Division 6 of Part 3 amends the Department of Human Resources and Skills Development Act to change the name of the Department to the Department of Employment and Social Development and to reflect that name change in the title of that Act and of its responsible Minister. In addition, the Division amends Part 6 of that Act to extend that Minister’s powers with respect to certain Acts, programs and activities and to allow the Minister of Labour to administer or enforce electronically the Canada Labour Code. The Division also adds the title of a Minister to the Salaries Act. Finally, it makes consequential amendments to several other Acts to reflect the name change.

Division 7 of Part 3 authorizes Her Majesty in right of Canada to hold, dispose of or otherwise deal with the Dominion Coal Blocks in any manner.

Division 8 of Part 3 authorizes the amalgamation of four Crown corporations that own or operate international bridges and gives the resulting amalgamated corporation certain powers. It also makes consequential amendments and repeals certain Acts.

Division 9 of Part 3 amends the Financial Administration Act to provide that agent corporations designated by the Minister of Finance may, subject to any terms and conditions of the designation, pledge any securities or cash that they hold, or give deposits, as security for the payment or performance of obligations arising out of derivatives that they enter into or guarantee for the management of financial risks.

Division 10 of Part 3 amends the National Research Council Act to reduce the number of members of the National Research Council of Canada and to create the position of Chairperson of the Council.

Division 11 of Part 3 amends the Veterans Review and Appeal Board Act to reduce the permanent number of members of the Veterans Review and Appeal Board.

Division 12 of Part 3 amends the Canada Pension Plan Investment Board Act to allow for the appointment of up to three directors who are not residents of Canada.

Division 13 of Part 3 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to extend to the whole Act the protection for communications that are subject to solicitor-client privilege and to provide that information disclosed by the Financial Transactions and Reports Analysis Centre of Canada under subsection 65(1) of that Act may be used by a law enforcement agency referred to in that subsection only as evidence of a contravention of Part 1 of that Act.

Division 14 of Part 3 enacts the Mackenzie Gas Project Impacts Fund Act, which establishes the Mackenzie Gas Project Impacts Fund. The Division also repeals the Mackenzie Gas Project Impacts Act.

Division 15 of Part 3 amends the Conflict of Interest Act to allow the Governor in Council to designate a person or class of persons as public office holders and to designate a person who is a public office holder or a class of persons who are public office holders as reporting public office holders, for the purposes of that Act.

Division 16 of Part 3 amends the Immigration and Refugee Protection Act to establish a new regime that provides that a foreign national who wishes to apply for permanent residence as a member of a certain economic class may do so only if they have submitted an expression of interest to the Minister and have subsequently been issued an invitation to apply.

Division 17 of Part 3 modernizes the collective bargaining and recourse systems provided by the Public Service Labour Relations Act regime. It amends the dispute resolution process for collective bargaining by removing the choice of dispute resolution method and substituting conciliation, which involves the possibility of the use of a strike as the method by which the parties may resolve impasses. In those cases where 80% or more of the positions in a bargaining unit are considered necessary for providing an essential service, the dispute resolution mechanism is to be arbitration. The collective bargaining process is further streamlined through amendments to the provision dealing with essential services. The employer has the exclusive right to determine that a service is essential and the numbers of positions that will be required to provide that service. Bargaining agents are to be consulted as part of the essential services process. The collective bargaining process is also amended by extending the timeframe within which a notice to bargain collectively may be given before the expiry of a collective agreement or arbitral award.

In addition, the Division amends the factors that arbitration boards and public interest commissions must take into account when making awards or reports, respectively. It also amends the processes for the making of those awards and reports and removes the compensation analysis and research function from the mandate of the Public Service Labour Relations Board.

The Division streamlines the recourse process set out for grievances and complaints in Part 2 of the Public Service Labour Relations Act and for staffing complaints under the Public Service Employment Act.

The Division also establishes a single forum for employees to challenge decisions relating to discrimination in the public service. Grievances and complaints are to be heard by the Public Service Labour Relations Board under the grievance process set out in the Public Service Labour Relations Act. The process for the review of those grievances or complaints is to be the same as the one that currently exists under the Canadian Human Rights Act. However, grievances and complaints related specifically to staffing complaints are to be heard by the Public Service Staffing Tribunal. Grievances relating to discrimination are required to be submitted within one year or any longer period that the Public Service Labour Relations Board considers appropriate, to reflect what currently exists under the Canadian Human Rights Act.

Furthermore, the Division amends the grievance recourse process in several ways. With the sole exception of grievances relating to issues of discrimination, employees included in a bargaining unit may only present or refer an individual grievance to adjudication if they have the approval of and are represented by their bargaining agent. Also, the process as it relates to policy grievances is streamlined, including by defining more clearly an adjudicator’s remedial power when dealing with a policy grievance.

In addition, the Division provides for a clearer apportionment of the expenses of adjudication relating to the interpretation of a collective agreement. They are to be borne in equal parts by the employer and the bargaining agent. If a grievance relates to a deputy head’s direct authority, such as with respect to discipline, termination of employment or demotion, the expenses are to be borne in equal parts by the deputy head and the bargaining agent. The expenses of adjudication for employees who are not represented by a bargaining agent are to be borne by the Public Service Labour Relations Board.

Finally, the Division amends the recourse process for staffing complaints under the Public Service Employment Act by ensuring that the right to complain is triggered only in situations when more than one employee participates in an exercise to select employees that are to be laid off. And, candidates who are found not to meet the qualifications set by a deputy head may only complain with respect to their own assessment.

Division 18 of Part 3 establishes the Public Service Labour Relations and Employment Board to replace the Public Service Labour Relations Board and the Public Service Staffing Tribunal. The new Board will deal with matters that were previously dealt with by those former Boards under the Public Service Labour Relations Act and the Public Service Employment Act, respectively, which will permit proceedings under those Acts to be consolidated.

Division 19 of Part 3 adds declaratory provisions to the Supreme Court Act, respecting the criteria for appointing judges to the Supreme Court of Canada.

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 Economic Action Plan 2013 Act, No. 2.

PART 1 MEASURES RELATING TO INCOME TAX

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

2. (1) Subsections 10(10) and (11) of the Income Tax Act are replaced by the following:

Marginal note:Loss restriction event

(10) Notwithstanding subsection (1.01), property described in an inventory of a taxpayer’s business that is an adventure or concern in the nature of trade at the end of the taxpayer’s taxation year that ends immediately before the time at which the taxpayer is subject to a loss restriction event is to be valued at the cost at which the taxpayer acquired the property, or its fair market value at the end of the year, whichever is lower, and after that time the cost at which the taxpayer acquired the property is, subject to a subsequent application of this subsection, deemed to be that lower amount.

Marginal note:Loss restriction event

(11) For the purposes of subsections 88(1.1) and 111(5), a taxpayer’s business that is at any time an adventure or concern in the nature of trade is deemed to be a business carried on at that time by the taxpayer.

(2) Subsection (1) is deemed to have come into force on March 21, 2013.

3. (1) Subsection 11(1) of the Act is replaced by the following:

Marginal note:Proprietor of business

11. (1) Subject to section 34.1, if an individual is a proprietor of a business, the individual’s income from the business for a taxation year is deemed to be the individual’s income from the business for the fiscal periods of the business that end in the year.

(2) Subsection (1) applies to taxation years that end after March 22, 2011.

4. (1) Subsection 12(1) of the Act is amended by striking out “and” at the end of paragraph (z.5), by adding “and” at the end of paragraph (z.6) and by adding the following after paragraph (z.6):

Marginal note:Derivative forward agreement

(z.7) the total of all amounts each of which is

(i) if the taxpayer acquires a property under a derivative forward agreement in the year, the amount by which the fair market value of the property at the time it is acquired by the taxpayer exceeds the cost to the taxpayer of the property, or

(ii) if the taxpayer disposes of a property under a derivative forward agreement in the year, the amount by which the proceeds of disposition (within the meaning assigned by subdivision c) of the property exceeds the fair market value of the property at the time the agreement is entered into by the taxpayer.

(2) Section 12 of the Act is amended by adding the following after subsection (2.01):

Marginal note:Source of income

(2.02) For the purposes of this Act, if an amount is included in computing the income of a taxpayer for a taxation year because of paragraph (1)(l.1) and the amount is in respect of interest that is deductible by a partnership in computing its income from a particular source or from sources in a particular place, the amount is deemed to be from the particular source or from sources in the particular place, as the case may be.

(3) Subsection (1) applies to acquisitions and dispositions of property by a taxpayer that occur

(a) under a derivative forward agreement entered into after March 20, 2013 unless

(i) the agreement is part of a series of agreements and the series

(A) includes a derivative forward agreement entered into after March 20, 2013 and before July 11, 2013, and

(B) has a term of 180 days or less (determined without reference to agreements entered into before March 21, 2013), or

(ii) the agreement is entered into after the final settlement of another derivative forward agreement (in this paragraph referred to as the “prior agreement”) and

(A) having regard to the source of the funds used to purchase the property to be sold under the agreement, it is reasonable to conclude that the agreement is a continuation of the prior agreement,

(B) the terms of the agreement and the prior agreement are substantially similar,

(C) the final settlement date under the agreement is before 2015,

(D) subsection (1) would not apply to any acquisitions or dispositions under the prior agreement if this subsection were read without reference to subparagraph (i), and

(E) the notional amount of the agreement is at all times less than or equal to the amount determined by the formula

(A + B + C + D + E) – (F + G)

where


is the notional amount of the agreement when it is entered into,


is the total of all amounts each of which is an increase in the notional amount of the agreement, at or before that time, that is attributable to the underlying interest,


is the amount of the taxpayer’s cash on hand immediately before March 21, 2013 that was committed, before March 21, 2013, to be invested under the agreement,


is the total of all amounts each of which is an increase, at or before that time, in the notional amount of the agreement that is attributable to the final settlement of another derivative forward agreement (in this description referred to as the “terminated agreement”) if subsection (1) would not apply to any acquisitions or dispositions under the terminated agreement if this subsection were read without reference to subparagraph (i),


is the lesser of

(I) either

1. if the prior agreement was entered into before March 21, 2013, the amount, if any, by which the amount determined under clause (A) of the description of F in subparagraph (b)(ii) for the prior agreement immediately before it was finally settled exceeds the total determined under clause (B) of the description of F in subparagraph (b)(ii) for the prior agreement immediately before it was finally settled, or

2. in any other case, the amount, if any, by which the amount determined under this subclause for the prior agreement immediately before it was finally settled exceeds the total determined under subclause (II) for the prior agreement immediately before it was finally settled, and

(II) the total of all amounts each of which is an increase in the notional amount of the agreement before July 11, 2013 that is not otherwise described in this formula,


is the total of all amounts each of which is a decrease in the notional amount of the agreement, at or before that time, that is attributable to the underlying interest, and


is the total of all amounts each of which is the amount of a partial settlement of the agreement, at or before that time, to the extent that it is not reinvested in the agreement;

(b) after March 20, 2013 and before March 22, 2018 under a derivative forward agreement entered into before March 21, 2013, if

(i) after March 20, 2013, the term of the agreement is extended beyond 2014, or

(ii) at any time after March 20, 2013, the notional amount of the agreement exceeds the amount determined by the formula

(A + B + C + D + E + F) – (G + H)

where


is the notional amount of the agreement immediately before March 21, 2013,


is the total of all amounts each of which is an increase in the notional amount of the agreement, after March 20, 2013 and at or before that time, that is attributable to the underlying interest,


is the amount of the taxpayer’s cash on hand immediately before March 21, 2013 that was committed, before March 21, 2013, to be invested under the agreement,


is the amount, if any, of an increase, after March 20, 2013 and at or before that time, in the notional amount of the agreement as a consequence of the exercise of an over-allotment option granted before March 21, 2013,


is the total of all amounts each of which is an increase, after March 20, 2013 and at or before that time, in the notional amount of the agreement that is attributable to the final settlement of another derivative forward agreement (in this description referred to as the “terminated agreement”) if

(A) the final settlement date under the agreement is

(I) before 2015, or

(II) on or before the date on which the terminated agreement, as it read immediately before March 21, 2013, was to be finally settled, and

(B) subsection (1) would not apply to any acquisitions or dispositions under the terminated agreement if this subsection were read without reference to subparagraph (a)(i),


is the lesser of

(A) 5% of the notional amount of the agreement immediately before March 21, 2013, and

(B) the total of all amounts each of which is an increase in the notional amount of the agreement after March 20, 2013 and before July 11, 2013 that is not otherwise described in this formula,


is the total of all amounts each of which is a decrease in the notional amount of the agreement, after March 20, 2013 and at or before that time, that is attributable to the underlying interest, and


is the total of all amounts each of which is the amount of a partial settlement of the agreement, after March 20, 2013 and at or before that time, to the extent that it is not reinvested in the agreement; or

(c) after March 21, 2018.

(4) For the purposes of subsection (3), the notional amount of a derivative forward agreement at any time is

(a) in the case of a purchase agreement, the fair market value at that time of the property that would be acquired under the agreement if the agreement were finally settled at that time; or

(b) in the case of a sale agreement, the sale price of the property that would be sold under the agreement if the agreement were finally settled at that time.

(5) Subsection (2) applies to taxation years that begin after 2013.

5. (1) The Act is amended by adding the following after section 12.5:

Marginal note:Definitions

12.6 (1) The definitions in section 18.3 apply in this section.

Marginal note:Where subsection (3) applies

(2) Subsection (3) applies for a taxation year of an entity in respect of a security of the entity if

(a) the security becomes, at a particular time in the year, a stapled security of the entity and, as a consequence, amounts described in paragraphs 18.3(3)(a) and (b) are not deductible because of subsection 18.3(3);

(b) the security (or any security for which the security was substituted) ceased, at an earlier time, to be a stapled security of any entity and, as a consequence, subsection 18.3(3) ceased to apply to deny the deductibility of amounts that would be described in paragraphs 18.3(3)(a) and (b) if the security were a stapled security; and

(c) throughout the period that began immediately after the most recent time referred to in paragraph (b) and that ends at the particular time, the security (or any security for which the security was substituted) was not a stapled security of any entity.

Marginal note:Income inclusion

(3) If this subsection applies for a taxation year of an entity in respect of a security of the entity, the entity shall include in computing its income for the year each amount that

(a) was deducted by the entity (or by another entity that issued a security for which the security was substituted) in computing its income for a taxation year that includes any part of the period described in paragraph (2)(c); and

(b) would not have been deductible if subsection 18.3(3) had applied in respect of the amount.

Marginal note:Deemed excess

(4) For the purposes of subsection 161(1), if an amount described in paragraph (3)(a) is included in the income of an entity for a taxation year under subsection (3), the entity is deemed to have an excess immediately after the entity’s balance-due day for the year computed as if

(a) the entity were resident in Canada throughout the year;

(b) the entity’s tax payable for the year were equal to the tax payable by the entity on its taxable income for the year;

(c) the amount were the entity’s only taxable income for the year;

(d) the entity claimed no deductions under Division E for the year;

(e) the entity had not paid any amounts on account of its tax payable for the year; and

(f) the tax payable determined under paragraph (b) had been outstanding throughout the period that begins immediately after the end of the taxation year for which the amount was deducted and that ends on the entity’s balance-due day for the year.

(2) Subsection (1) is deemed to have come into force on July 20, 2011.

6. (1) Paragraph 13(7)(f) of the Act is replaced by the following:

(f) if a taxpayer is deemed under paragraph 111(4)(e) to have disposed of and reacquired depreciable property (other than a timber resource property), the capital cost to the taxpayer of the property at the time of the reacquisition is deemed to be equal to the total of

(i) the capital cost to the taxpayer of the property at the time of the disposition, and

(ii) 1/2 of the amount, if any, by which the taxpayer’s proceeds of disposition of the property exceed the capital cost to the taxpayer of the property at the time of the disposition;

(2) Subsection 13(18.1) of the Act is replaced by the following:

Marginal note:Ascertainment of certain property

(18.1) For the purpose of determining whether property meets the criteria set out in the Income Tax Regulations in respect of prescribed energy conservation property, the Technical Guide to Class 43.1 and 43.2, as amended from time to time and published by the Department of Natural Resources, shall apply conclusively with respect to engineering and scientific matters.

(3) Clause 13(21.2)(e)(iii)(D) of the Act is replaced by the following:

(D) that is immediately before the transferor is subject to a loss restriction event, or

(4) Subsections 13(24) and (25) of the Act are replaced by the following:

Marginal note:Loss restriction event

(24) If at any time a taxpayer is subject to a loss restriction event and, within the 12-month period that ended immediately before that time, the taxpayer, a partnership of which the taxpayer was a majority-interest partner or a trust of which the taxpayer was a majority-interest beneficiary (as defined in subsection 251.1(3)) acquired depreciable property (other than property that was held, by the taxpayer, partnership or trust or by a person that would be affiliated with the taxpayer if section 251.1 were read without reference to the definition “controlled” in subsection 251.1(3), throughout the period that began immediately before the 12-month period began and ended at the time the property was acquired by the taxpayer, partnership or trust) that was not used, or acquired for use, by the taxpayer, partnership or trust in a business that was carried on by it immediately before the 12-month period began

(a) subject to paragraph (b), for the purposes of the description of A in the definition “undepreciated capital cost” in subsection (21) and of sections 127 and 127.1, the property is deemed

(i) not to have been acquired by the taxpayer, partnership or trust, as the case may be, before that time, and

(ii) to have been acquired by it immediately after that time; and

(b) if the property was disposed of by the taxpayer, partnership or trust, as the case may be, before that time and was not reacquired by it before that time, for the purposes of the description of A in that definition, the property is deemed to have been acquired by it immediately before the property was disposed of.

Marginal note:Affiliation  — subsection (24)

(25) For the purposes of subsection (24), if the taxpayer referred to in that subsection was formed or created in the 12-month period referred to in that subsection, the taxpayer is deemed to have been, throughout the period that began immediately before the 12-month period and ended immediately after it was formed or created,

(a) in existence; and

(b) affiliated with every person with whom it was affiliated (otherwise than because of a right referred to in paragraph 251(5)(b)) throughout the period that began when it was formed or created and that ended immediately before the time at which the taxpayer was subject to the loss restriction event referred to in that subsection.

(5) Subsections (1), (3) and (4) are deemed to have come into force on March 21, 2013, except that subsection 13(24) of the Act, as enacted by subsection (4), is to be read as follows before September 13, 2013:

(24) If at any time a taxpayer is subject to a loss restriction event and, within the 12-month period that ended immediately before that time, the taxpayer or a partnership of which the taxpayer was a majority-interest partner acquired depreciable property (other than property that was held, by the taxpayer or partnership or by a person that would be affiliated with the taxpayer if section 251.1 were read without reference to the definition “controlled” in subsection 251.1(3), throughout the period that began immediately before the 12-month period began and ended at the time the property was acquired by the taxpayer or partnership) that was not used, or acquired for use, by the taxpayer or partnership in a business that was carried on by it immediately before the 12-month period began

(a) subject to paragraph (b), for the purposes of the description of A in the definition “undepreciated capital cost” in subsection (21) and of sections 127 and 127.1, the property is deemed

(i) not to have been acquired by the taxpayer or partnership, as the case may be, before that time, and

(ii) to have been acquired by it immediately after that time; and

(b) if the property was disposed of by the taxpayer or partnership, as the case may be, before that time and was not reacquired by it before that time, for the purposes of the description of A in that definition, the property is deemed to have been acquired by it immediately before the property was disposed of.

(6) Subsection (2) comes into force, or is deemed to have come into force, on the day on which the Technical Guide to Class 43.1 and 43.2 is first published by the Department of Natural Resources.

7. (1) Paragraph 14(12)(f) of the Act is replaced by the following:

(f) that is immediately before the transferor is subject to a loss restriction event, or

(2) Subsection (1) is deemed to have come into force on March 21, 2013.

8. (1) Subsection 18(4) of the Act is replaced by the following:

Marginal note:Limitation on deduction of interest

(4) Notwithstanding any other provision of this Act (other than subsection (8)), in computing the income for a taxation year of a corporation or a trust from a business (other than the Canadian banking business of an authorized foreign bank) or property, no deduction shall be made in respect of that proportion of any amount otherwise deductible in computing its income for the year in respect of interest paid or payable by it on outstanding debts to specified non-residents that

(a) the amount, if any, by which

(i) the average of all amounts each of which is, in respect of a calendar month that ends in the year, the greatest total amount at any time in the month of the outstanding debts to specified non-residents of the corporation or trust,

exceeds

(ii) 1.5 times the equity amount of the corporation or trust for the year,

is of

(b) the amount determined under subparagraph (a)(i) in respect of the corporation or trust for the year.

(2) The portion of the definition “outstanding debts to specified non-residents” in subsection 18(5) of the Act before paragraph (b) is replaced by the following:

“outstanding debts to specified non-residents”

« dettes impayées envers des non-résidents déterminés »

“outstanding debts to specified non-residents”, of a corporation or trust at any particular time in a taxation year, means

(a) the total of all amounts each of which is an amount outstanding at that time as or on account of a debt or other obligation to pay an amount

(i) that was payable by the corporation or trust to a person who was, at any time in the year,

(A) a specified non-resident shareholder of the corporation or a specified non-resident beneficiary of the trust, or

(B) a non-resident person who was not dealing at arm’s length with a specified shareholder of the corporation or a specified beneficiary of the trust, as the case may be, and

(ii) on which any amount in respect of interest paid or payable by the corporation or trust is or would be, but for subsection (4), deductible in computing the income of the corporation or trust for the year,

but does not include

(3) Subsection 18(5) of the Act is amended by adding the following in alphabetical order:

“beneficiary”

« bénéficiaire »

“beneficiary” has the same meaning as in subsection 108(1);

“equity amount”

« montant des capitaux propres »

“equity amount”, of a corporation or trust for a taxation year, means

(a) in the case of a corporation resident in Canada, the total of

(i) the retained earnings of the corporation at the beginning of the year, except to the extent that those earnings include retained earnings of any other corporation,

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

(iii) the average of all amounts each of which is the corporation’s paid-up capital at the beginning of a calendar month that ends in the year, excluding the paid-up capital in respect of shares of any class of the capital stock of the corporation owned by a person other than a specified non-resident shareholder of the corporation,

(b) in the case of a trust resident in Canada, the amount, if any, by which

(i) the total of

(A) the average of all amounts each of which is the total amount of all equity contributions to the trust made before a calendar month that ends in the year, to the extent that the contributions were made by a specified non-resident beneficiary of the trust, and

(B) the tax-paid earnings of the trust for the year,

exceeds

(ii) the average of all amounts each of which is the total of all amounts that were paid or became payable by the trust to a beneficiary of the trust in respect of the beneficiary’s interest under the trust before a calendar month that ends in the year except to the extent that the amount is

(A) included in the beneficiary’s income for a taxation year because of subsection 104(13),

(B) an amount from which tax was deducted under Part XIII because of paragraph 212(1)(c), or

(C) paid or payable to a person other than a specified non-resident beneficiary of the trust, and

(c) in the case of a corporation or trust that is not resident in Canada, including a corporation or trust that files a return under this Part in accordance with subsection 216(1) in respect of the year, 40% of the amount, if any, by which

(i) the average of all amounts each of which is the cost of a property, other than an interest as a member of a partnership, owned by the corporation or trust at the beginning of a calendar month that ends in the year

(A) that is used by the corporation or trust in the year in, or held by it in the year in the course of, carrying on business in Canada, or

(B) that is an interest in real property, or a real right in immovables, in Canada, or an interest in, or for civil law a right in, timber resource properties and timber limits, in Canada, and in respect of which the corporation or trust files a return under this Part in accordance with subsection 216(1) in respect of the year,

exceeds

(ii) the average of all amounts each of which is the total of all amounts outstanding, at the beginning of a calendar month that ends in the year, as or on account of a debt or other obligation to pay an amount that was payable by the corporation or trust that may reasonably be regarded as relating to a business carried on by it in Canada or to an interest or right described in clause (i)(B), other than a debt or obligation that is included in the outstanding debts to specified non-residents of the corporation or trust;

“equity contribution”

« apport de capitaux propres »

“equity contribution”, to a trust, means a transfer of property to the trust that is made

(a) in exchange for an interest as a beneficiary under the trust,

(b) in exchange for a right to acquire an interest as a beneficiary under the trust, or

(c) for no consideration by a person beneficially interested in the trust;

“specified beneficiary”

« bénéficiaire déterminé »

“specified beneficiary”, of a trust at any time, means a person who at that time, either alone or together with persons with whom that person does not deal at arm’s length, has an interest as a beneficiary under the trust with a fair market value that is not less than 25% of the fair market value of all interests as a beneficiary under the trust and for the purpose of determining whether a particular person is a specified beneficiary of a trust,

(a) if the particular person, or a person with whom the particular person does not deal at arm’s length, has at that time a right under a contract, in equity or otherwise, either immediately or in the future and either absolutely or contingently, to, or to acquire, an interest as a beneficiary under a trust, the particular person or the person with whom the particular person does not deal at arm’s length, as the case may be, is deemed at that time to own the interest,

(b) if the particular person, or a person with whom the particular person does not deal at arm’s length, has at that time a right under a contract, in equity or otherwise, either immediately or in the future and either absolutely or contingently to cause a trust to redeem, acquire or terminate any interest in it as a beneficiary (other than an interest held by the particular person or a person with whom the particular person does not deal at arm’s length), the trust is deemed at that time to have redeemed, acquired or terminated the interest, unless the right is not exercisable at that time because the exercise of the right is contingent on the death, bankruptcy or permanent disability of an individual, and

(c) if the amount of income or capital of the trust that the particular person, or a person with whom the particular person does not deal at arm’s length, may receive as a beneficiary of the trust depends on the exercise by any person of, or the failure by any person to exercise, a discretionary power, that person is deemed to have fully exercised, or to have failed to exercise, the power, as the case may be;

“specified non-resident beneficiary”

« bénéficiaire non-résident déterminé »

“specified non-resident beneficiary”, of a trust at any time, means a specified beneficiary of the trust who at that time is a non-resident person;

“tax-paid earnings”

« bénéfices libérés d’impôt »

“tax-paid earnings”, of a trust resident in Canada for a taxation year, means the total of all amounts each of which is the amount in respect of a particular taxation year of the trust that ended before the year determined by the formula

A – B

where


is the taxable income of the trust under this Part for the particular year, and


is the total of tax payable under this Part by the trust, and all income taxes payable by the trust under the laws of a province, for the particular year.

(4) Subsections 18(5.1) and (6) of the Act are replaced by the following:

Marginal note:Specified shareholder or specified beneficiary

(5.1) For the purposes of subsections (4) to (6), if

(a) a particular person would, but for this subsection, be a specified shareholder of a corporation or a specified beneficiary of a trust at any time,

(b) there was in effect at that time an agreement or arrangement under which, on the satisfaction of a condition or the occurrence of an event that it is reasonable to expect will be satisfied or will occur, the particular person will cease to be a specified shareholder of the corporation or a specified beneficiary of the trust, and

(c) the purpose for which the particular person became a specified shareholder or specified beneficiary was the safeguarding of rights or interests of the particular person or a person with whom the particular person is not dealing at arm’s length in respect of any indebtedness owing at any time to the particular person or a person with whom the particular person is not dealing at arm’s length,

the particular person is deemed not to be a specified shareholder of the corporation or a specified beneficiary of the trust, as the case may be, at that time.

Marginal note:Specified shareholder or specified beneficiary

(5.2) For the purposes of subsections (4) to (6), a non-resident corporation is deemed to be a specified shareholder of itself and a non-resident trust is deemed to be a specified beneficiary of itself.

Marginal note:Property used in business  —  cost attribution

(5.3) For the purposes of subparagraph (c)(i) of the definition “equity amount” in subsection (5),

(a) if a property is partly used or held by a taxpayer in a taxation year in the course of carrying on business in Canada, the cost of the property to the taxpayer is deemed for the year to be equal to the same proportion of the cost to the taxpayer of the property (determined without reference to this subsection) that the proportion of the use or holding made of the property in the course of carrying on business in Canada in the year is of the whole use or holding made of the property in the year; and

(b) if a corporation or trust is deemed to own a portion of a property of a partnership because of subsection (7) at any time,

(i) the property is deemed to have, at that time, a cost to the corporation or trust equal to the same proportion of the cost of the property to the partnership as the proportion of the debts and other obligations to pay an amount of the partnership allocated to it under subsection (7) is of the total amount of all debts and other obligations to pay an amount of the partnership, and

(ii) in the case of a partnership that carries on business in Canada, the corporation or trust is deemed to use or hold the property in the course of carrying on business in Canada to the extent the partnership uses or holds the property in the course of carrying on business in Canada for the fiscal period of the partnership that includes that time.

Marginal note:Rules  —  trust income

(5.4) For the purposes of this Act, a trust resident in Canada may designate in its return of income under this Part for a taxation year that all or any portion of an amount paid or credited as interest by the trust, or by a partnership, in the year to a non-resident person is deemed to be income of the trust that has been paid to the non-resident person as a beneficiary of the trust, and not to have been paid or credited by the trust or the partnership as interest, to the extent that an amount in respect of the interest

(a) is included in computing the income of the trust for the year under paragraph 12(1)(l.1); or

(b) is not deductible in computing the income of the trust for the year because of subsection (4).

Marginal note:Loans made on condition

(6) If any loan (in this subsection referred to as the “first loan”) has been made

(a) by a specified non-resident shareholder of a corporation or a specified non-resident beneficiary of a trust, or

(b) by a non-resident person who was not dealing at arm’s length with a specified shareholder of a corporation or a specified non-resident beneficiary of a trust,

to another person on condition that a loan (in this subsection referred to as the “second loan”) be made by any person to a particular corporation or trust, for the purposes of subsections (4) and (5), the lesser of

(c) the amount of the first loan, and

(d) the amount of the second loan

is deemed to be a debt incurred by the particular corporation or trust to the person who made the first loan.

(5) The portion of paragraph 18(7)(a) of the Act before subparagraph (i) is replaced by the following:

(a) to owe the portion (in this subsection and paragraph 12(1)(l.1) referred to as the “debt amount”) of each debt or other obligation to pay an amount of the partnership and to own the portion of each property of the partnership that is equal to

(6) Subparagraph 18(15)(b)(iii) of the Act is replaced by the following:

(iii) that is immediately before the transferor is subject to a loss restriction event, or

(7) Subsections (1) to (5) apply to taxation years that begin after 2013, except that if a trust that is resident in Canada on March 21, 2013 elects in writing and files the election with the Minister of National Revenue on or before the trust’s filing-due date for its first taxation year that begins after 2013,

(a) for the purpose of determining the trust’s equity amount, as defined in subsection 18(5) of the Act, as enacted by subsection (3), the trust is deemed

(i) to not have received any equity contributions, as defined in subsection 18(5) of the Act, as enacted by subsection (3), before March 21, 2013,

(ii) to not have paid or made payable any amount to a beneficiary of the trust before March 21, 2013, and

(iii) to have tax-paid earnings, as defined in subsection 18(5) of the Act, as enacted by subsection (3), of nil for each taxation year that ends before March 21, 2013, and

(b) each beneficiary of the trust at the beginning of March 21, 2013 is deemed to have made an equity contribution at that time to the trust equal to the amount determined by the formula

A/B × (C – D)

where


is the fair market value of the beneficiary’s interest as a beneficiary under the trust at that time,


is the fair market value of all the beneficial interests under the trust at that time,


is the total fair market value of all the properties of the trust at that time, and


is the total amount of the trust’s liabilities at that time.

(8) Subsection (6) is deemed to have come into force on March 21, 2013.

9. (1) Subparagraph 18.1(10)(b)(ii) of the Act is replaced by the following:

(ii) that is immediately before the taxpayer is subject to a loss restriction event,

(2) Subsection (1) is deemed to have come into force on March 21, 2013.

10. (1) The Act is amended by adding the following before section 19:

Marginal note:Definitions

18.3 (1) The following definitions apply in this section.

“entity”

« entité »

“entity” has the same meaning as in subsection 122.1(1).

“equity value”

« valeur des capitaux propres »

“equity value” has the same meaning as in subsection 122.1(1).

“real estate investment trust”

« fiducie de placement immobilier »

“real estate investment trust” has the same meaning as in subsection 122.1(1).

“security”

« titre »

“security”, of an entity, means

(a) a liability of the entity;

(b) if the entity is a corporation,

(i) a share of the capital stock of the corporation, and

(ii) a right to control in any manner whatever the voting rights of a share of the capital stock of the corporation if it can reasonably be concluded that one of the reasons that a person or partnership holds the right to control is to avoid the application of subsection (3) or 12.6(3);

(c) if the entity is a trust, an income or a capital interest in the trust; and

(d) if the entity is a partnership, an interest as a member of the partnership.

“stapled security”

« titre agrafé »

“stapled security”, of a particular entity at any time, means a particular security of the particular entity if at that time

(a) another security (referred to in this section as the “reference security”)

(i) is or may be required to be transferred together or concurrently with the particular security as a term or condition of the particular security, the reference security, or an agreement or arrangement to which the particular entity (or if the reference security is a security of another entity, the other entity) is a party, or

(ii) is listed or traded with the particular security on a stock exchange or other public market under a single trading symbol;

(b) the particular security or the reference security is listed or traded on a stock exchange or other public market; and

(c) any of the following applies:

(i) the reference security and the particular security are securities of the particular entity and the particular entity is a corporation, SIFT partnership or SIFT trust,

(ii) the reference security is a security of another entity, one of the particular entity or the other entity is a subsidiary of the other, and the particular entity or the other entity is a corporation, SIFT partnership or SIFT trust, or

(iii) the reference security is a security of another entity and the particular entity or the other entity is a real estate investment trust or a subsidiary of a real estate investment trust.

“subsidiary”

« filiale »

“subsidiary”, of a particular entity at any time, means

(a) an entity in which the particular entity holds at that time securities that have a total fair market value greater than 10% of the equity value of the entity; and

(b) an entity that at that time is a subsidiary of an entity that is a subsidiary of the particular entity.

“transition period”

« période de transition »

“transition period”, of an entity, means

(a) if one or more securities of the entity would have been stapled securities of the entity on October 31, 2006 and July 19, 2011 had the definition “stapled security” in this subsection come into force on October 31, 2006, the period that begins on July 20, 2011 and ends on the earliest of

(i) January 1, 2016,

(ii) the first day after July 20, 2011 on which any of those securities is materially altered, and

(iii) the first day after July 20, 2011 on which any security of the entity becomes a stapled security other than by way of

(A) a transaction

(I) that is completed under the terms of an agreement in writing entered into before July 20, 2011 if no party to the agreement may be excused from completing the transaction as a result of amendments to this Act, and

(II) that is not the issuance of a security in satisfaction of a right to enforce payment of an amount by the entity, or

(B) the issuance of the security in satisfaction of a right to enforce payment of an amount that became payable by the entity on another security of the entity before July 20, 2011, if the other security was a stapled security on July 20, 2011 and the issuance was made under a term or condition of the other security in effect on July 20, 2011;

(b) if paragraph (a) does not apply to the entity and one or more securities of the entity would have been stapled securities of the entity on July 19, 2011 had the definition “stapled security” in this subsection come into force on July 19, 2011, the period that begins on July 20, 2011 and ends on the earliest of

(i) July 20, 2012,

(ii) the first day after July 20, 2011 on which any of those securities is materially altered, and

(iii) the first day after July 20, 2011 on which any security of the entity becomes a stapled security other than by way of

(A) a transaction

(I) that is completed under the terms of an agreement in writing entered into before July 20, 2011 if no party to the agreement may be excused from completing the transaction as a result of amendments to this Act, and

(II) that is not the issuance of a security in satisfaction of a right to enforce payment of an amount by the entity, or

(B) the issuance of the security in satisfaction of a right to enforce payment of an amount that became payable by the entity on another security of the entity before July 20, 2011, if the other security was a stapled security on July 20, 2011 and the issuance was made under a term or condition of the other security in effect on July 20, 2011; and

(c) in any other case, if the entity is a subsidiary of another entity on July 20, 2011 and the other entity has a transition period, the period that begins on July 20, 2011 and ends on the earliest of

(i) the day on which the other entity’s transition period ends,

(ii) the first day after July 20, 2011 on which the entity ceases to be a subsidiary of the other entity, and

(iii) the first day after July 20, 2011 on which any security of the entity becomes a stapled security other than by way of

(A) a transaction

(I) that is completed under the terms of an agreement in writing entered into before July 20, 2011 if no party to the agreement may be excused from completing the transaction as a result of amendments to this Act, and

(II) that is not the issuance of a security in satisfaction of a right to enforce payment of an amount by the entity, or

(B) the issuance of the security in satisfaction of a right to enforce payment of an amount that became payable by the entity on another security of the entity before July 20, 2011, if the other security was a stapled security on July 20, 2011 and the issuance was made under a term or condition of the other security in effect on July 20, 2011.

Marginal note:Property representing security

(2) For the purpose of determining whether a particular security of an entity is a stapled security, if a receipt or similar property (referred to in this subsection as the “receipt”) represents all or a portion of the particular security and the receipt would be described in paragraphs (a) and (b) of the definition “stapled security” in subsection (1) if it were a security of the entity, then

(a) the particular security is deemed to be described in those paragraphs; and

(b) a security that would be a reference security in respect of the receipt is deemed to be a reference security in respect of the particular security.

Marginal note:Amounts not deductible

(3) Notwithstanding any other provision of this Act, in computing the income of a particular entity for a taxation year from a business or property, no deduction may be made in respect of an amount

(a) that is paid or payable after July 19, 2011, unless the amount is paid or payable in respect of the entity’s transition period; and

(b) that is

(i) interest paid or payable on a liability of the particular entity that is a stapled security, unless each reference security in respect of the stapled security is a liability, or

(ii) if a security of the particular entity, a subsidiary of the particular entity or an entity of which the particular entity is a subsidiary is a reference security in respect of a stapled security of a real estate investment trust or a subsidiary of a real estate investment trust, an amount paid or payable to

(A) the real estate investment trust,

(B) a subsidiary of the real estate investment trust, or

(C) any person or partnership on condition that any person or partnership pays or makes payable an amount to the real estate investment trust or a subsidiary of the real estate investment trust.

(2) Subsection (1) is deemed to have come into force on July 20, 2011.

11. (1) The portion of paragraph 20(1)(e.2) of the Act before clause (i)(A) is replaced by the following:

Marginal note:Premiums on life insurance  — collateral

(e.2) the least of the following amounts in respect of a life insurance policy (other than an annuity contract or LIA policy):

(i) the premiums payable by the taxpayer under the policy in respect of the year, if

(2) The portion of paragraph 20(1)(e.2) of the Act after clause (i)(C) is replaced by the following:

(ii) the net cost of pure insurance in respect of the year (other than in respect of a period after 2013 during which the policy is a 10/8 policy), as determined in accordance with the regulations, in respect of the interest in the policy referred to in clause (i)(A), and

(iii) the portion, of the lesser of the amounts determined under subparagraphs (i) and (ii) in respect of the policy, that can reasonably be considered to relate to the amount owing from time to time during the year by the taxpayer to the institution under the borrowing;

(3) Subsection 20(1) of the Act is amended by striking out “and” at the end of paragraph (vv), by adding “and” at the end of paragraph (ww) and by adding the following after paragraph (ww):

Marginal note:Derivative forward agreement

(xx) in respect of a derivative forward agreement of a taxpayer, the amount determined by the formula

A – B

where


is the lesser of

(i) the total of all amounts each of which is

(A) if the taxpayer acquires a property under the agreement in the year or a preceding taxation year, the amount by which the cost to the taxpayer of the property exceeds the fair market value of the property at the time it is acquired by the taxpayer, or

(B) if the taxpayer disposes of a property under the agreement in the year or a preceding taxation year, the amount by which the fair market value of the property at the time the agreement is entered into by the taxpayer exceeds the proceeds of disposition (within the meaning assigned by subdivision c) of the property, and

(ii) the amount that is,

(A) if final settlement of the agreement occurs in the year and it cannot reasonably be considered that one of the main reasons for entering into the agreement is to obtain a deduction under this paragraph, the amount determined under subparagraph (i), or

(B) in any other case, the total of all amounts included under paragraph 12(1)(z.7) in computing the taxpayer’s income in respect of the agreement for the year or a preceding taxation year, and


is the total of all amounts deducted under this paragraph in respect of the agreement for a preceding taxation year.

(4) Section 20 of the Act is amended by adding the following after subsection (2):

Marginal note:Limitation of expression “interest”  — 10/8 policy

(2.01) For the purposes of paragraphs (1)(c) and (d), interest does not include an amount if

(a) the amount

(i) is paid, after March 20, 2013 in respect of a period after 2013, in respect of a life insurance policy that is, at the time of the payment, a 10/8 policy, and

(ii) is described in paragraph (a) of the definition “10/8 policy” in subsection 248(1); or

(b) the amount

(i) is payable, in respect of a life insurance policy, after March 20, 2013 in respect of a period after 2013 during which the policy is a 10/8 policy, and

(ii) is described in paragraph (a) of the definition “10/8 policy” in subsection 248(1).

(5) Paragraph 20(8)(d) of the English version of the Act is replaced by the following:

(d) the purchaser of the property sold was a partnership in which the taxpayer was, immediately after the sale, a majority-interest partner.

(6) Subsections (1), (2) and (4) apply to taxation years that end after March 20, 2013.

(7) Subsection (3) applies to acquisitions and dispositions of property to which subsection 4(1) applies.

12. Subclause 20.01(2)(b)(i)(A)(II) of the English version of the Act is replaced by the following:

(II) a partnership of which the individual is a majority-interest partner, or

13. Subparagraph 28(1)(a)(ii) of the English version of the Act is replaced by the following:

(ii) were in payment of or on account of an amount that would, if the income from the business were not computed in accordance with the cash method, be included in computing income from the business for that or any other year,

14. (1) The portion of subsection 31(1) of the Act before paragraph (a) is replaced by the following:

Marginal note:Restricted farm loss

31. (1) If a taxpayer’s chief source of income for a taxation year is neither farming nor a combination of farming and some other source of income that is a subordinate source of income for the taxpayer, then for the purposes of sections 3 and 111 the taxpayer’s loss, if any, for the year from all farming businesses carried on by the taxpayer is deemed to be the total of

(2) Subparagraph 31(1)(a)(i) of the Act is replaced by the following:

(i) the amount by which the total of the taxpayer’s losses for the year, determined without reference to this section and before making any deduction under section 37, from all farming businesses carried on by the taxpayer exceeds the total of the taxpayer’s incomes for the year, so determined from all such businesses, and

(3) Clause 31(1)(a)(ii)(B) of the Act is replaced by the following:

(B) $15,000, and

(4) Subparagraph 31(1)(b)(i) of the Act is replaced by the following:

(i) the amount that would be determined under subparagraph (a)(i) if it were read without reference to “and before making any deduction under section 37”,

(5) Subsection 31(2) of the Act is replaced by the following:

Marginal note:Farming and manufacturing or processing

(2) Subsection (1) does not apply to a taxpayer for a taxation year if the taxpayer’s chief source of income for the year is a combination of farming and manufacturing or processing in Canada of goods for sale and all or substantially all output from all farming businesses carried on by the taxpayer is used in the manufacturing or processing.

(6) Subsections (1) to (5) apply to taxation years that end after March 20, 2013.

15. Subsections 34.1(4) to (7) of the Act are repealed.

16. (1) Subsection 34.2(4) of the Act is replaced by the following:

Marginal note:Treatment in following year

(4) If an amount was included in computing the income of a corporation in respect of a partnership for the immediately preceding taxation year under subsection (2) or (3),

(a) the portion of the amount that, because of subparagraph (5)(a)(i) or (ii), was income for that preceding year is deductible in computing the income of the corporation for the current taxation year; and

(b) the portion of the amount that, because of subparagraph (5)(a)(i) or (ii), was taxable capital gains for that preceding year is deemed to be an allowable capital loss of the corporation for the current taxation year from the disposition of property.

(2) Subparagraphs 34.2(5)(a)(i) to (v) of the Act are replaced by the following:

(i) an adjusted stub period accrual included under subsection (2) in respect of a partnership for the year is deemed to be income, and taxable capital gains from the disposition of property, having the same character and to be in the same proportions as any income and taxable capital gains that were allocated by the partnership to the corporation for all fiscal periods of the partnership ending in the year,

(ii) an amount included under subsection (3) in respect of a partnership for the year is deemed to be income, and taxable capital gains from the disposition of property, having the same character and to be in the same proportions as any income and taxable capital gains that were allocated by the partnership to the corporation for the particular period referred to in that subsection,

(iii) an amount, a portion of which is deductible or is an allowable capital loss under subsection (4) in respect of a partnership for the year, is deemed to have the same character and to be in the same proportions as the income and taxable capital gains included in the corporation’s income for the immediately preceding taxation year under subsection (2) or (3) in respect of the partnership,

(iv) an amount claimed as a reserve under subsection (11) in respect of a partnership for the year is deemed to have the same character and to be in the same proportions as the qualifying transitional income in respect of the partnership for the year, and

(v) an amount, a portion of which is included in income under paragraph (12)(a), or is deemed to be a taxable capital gain under paragraph (12)(b), in respect of a partnership for the year, is deemed to have the same character and to be in the same proportions as the amount claimed as a reserve under subsection (11) in respect of the partnership for the immediately preceding taxation year;

(3) Paragraph 34.2(5)(b) of the Act is replaced by the following:

(b) a corporation’s capital dividend account, as defined in subsection 89(1), is to be determined without reference to this section; and

(c) the reference in subparagraph 53(2)(c)(i.4) to an amount deducted under subsection (11) by a taxpayer includes an amount deemed to be an allowable capital loss under subparagraph (11)(b)(ii).

(4) Subsection 34.2(11) of the Act is replaced by the following:

Marginal note:Transitional reserve

(11) If a corporation has qualifying transitional income in respect of a partnership for a particular taxation year,

(a) the corporation may, in computing its income for the particular year, claim an amount, as a reserve, not exceeding the least of

(i) the specified percentage for the particular year of the corporation’s qualifying transitional income in respect of the partnership,

(ii) if, for the immediately preceding taxation year, an amount was claimed under this subsection in computing the corporation’s income in respect of the partnership, the amount that is the total of

(A) the amount included under subsection (12) in computing the corporation’s income for the particular year in respect of the partnership, and

(B) the amount by which the corporation’s qualifying transitional income in respect of the partnership is increased in the particular year because of the application of subsections (16) and (17), and

(iii) the amount determined by the formula

A – B

where


is the corporation’s income for the particular year computed before deducting or claiming any amount under this subsection in respect of the partnership or under section 61.3 and 61.4, and


is the total of all amounts each of which is an amount deductible by the corporation for the year under section 112 or 113 in respect of a dividend received by the corporation after December 20, 2012; and

(b) the portion of the amount claimed under paragraph (a) for the particular year that, because of subparagraph (5)(a)(iv), has

(i) a character other than capital is deductible in computing the income of the corporation for the particular year, and

(ii) the character of capital is deemed to be an allowable capital loss of the corporation for the particular year from the disposition of property.

(5) Subsection 34.2(12) of the Act is replaced by the following:

Marginal note:Inclusion of prior year reserve

(12) Subject to subsection (5), if a reserve was claimed by a corporation under subsection (11) in respect of a partnership for the immediately preceding taxation year,

(a) the portion of the reserve that was deducted under subparagraph (11)(b)(i) for that preceding year is to be included in computing the income of the corporation for the current taxation year; and

(b) the portion of the reserve that was deemed by subparagraph (11)(b)(ii) to be an allowable capital loss of the corporation for that preceding year is deemed to be a taxable capital gain of the corporation for the current taxation year from the disposition of property.

(6) The portion of subsection 34.2(13) of the Act that is before paragraph (a) is replaced by the following

Marginal note:No reserve

(13) No claim shall be made under subsection (11) in computing a corporation’s income for a taxation year in respect of a partnership

(7) The portion of subsection 34.2(14) of the Act that is before paragraph (a) is replaced by the following:

Marginal note:Deemed partner

(14) A corporation that cannot claim an amount under subsection (11) for a taxation year in respect of a partnership solely because it has disposed of its interest in the partnership is deemed for the purposes of paragraph (13)(a) to be a member of a partnership continuously until the end of the taxation year if

(8) The portion of subsection 34.2(16) of the Act that is before paragraph (a) is replaced by the following:

Marginal note:Qualifying transition income adjustment  — conditions for application

(16) Subsection (17) applies for a particular taxation year of a corporation and for each subsequent taxation year for which the corporation may claim an amount under subsection (11) in respect of a partnership if the particular year is the first taxation year

(9) The description of C in paragraph 34.2(17)(b) of the Act is replaced by the following:


is nil,

(10) Subsections (1) to (9) apply to taxation years that end after March 22, 2011.

17. (1) Section 36 of the Act is repealed.

(2) Subsection (1) applies in respect of expenditures incurred in taxation years that begin after December 21, 2012.

18. (1) Paragraph 37(1)(h) of the Act is replaced by the following:

(h) if the taxpayer was subject to a loss restriction event before the end of the year, the amount determined for the year under subsection (6.1) with respect to the taxpayer.

(2) The portion of subsection 37(6.1) of the Act before paragraph (a) is replaced by the following:

Marginal note:Loss restriction event

(6.1) If a taxpayer was, at any time (in this subsection referred to as “that time”) before the end of a taxation year of the taxpayer, last subject to a loss restriction event, the amount determined for the purposes of paragraph (1)(h) for the year with respect to the taxpayer in respect of a business is the amount, if any, by which

(3) Clauses 37(6.1)(a)(i)(A) to (C) of the Act are replaced by the following:

(A) an expenditure described in paragraph (1)(a) or (c) that was made by the taxpayer before that time,

(B) the lesser of the amounts determined immediately before that time in respect of the taxpayer under subparagraphs (1)(b)(i) and (ii), as those paragraphs read on March 29, 2012, in respect of expenditures made, and property acquired, by the taxpayer before 2014, or

(C) an amount determined in respect of the taxpayer under paragraph (1)(c.1) for its taxation year that ended immediately before that time

(4) Subparagraphs 37(6.1)(a)(ii) and (iii) of the Act are replaced by the following:

(ii) the total of all amounts determined in respect of the taxpayer under paragraphs (1)(d) to (g) for its taxation year that ended immediately before that time, or

(iii) the amount deducted under subsection (1) in computing the taxpayer’s income for its taxation year that ended immediately before that time

(5) Subparagraphs 37(6.1)(b)(i) and (ii) of the Act are replaced by the following:

(i) if the business to which the amounts described in any of clauses (a)(i)(A) to (C) can reasonably be considered to have been related was carried on by the taxpayer for profit or with a reasonable expectation of profit throughout the year, the total of

(A) the taxpayer’s income for the year from the business before making any deduction under subsection (1), and

(B) if properties were sold, leased, rented or developed, or services were rendered, in the course of carrying on the business before that time, the taxpayer’s income for the year, before making any deduction under subsection (1), from any other business substantially all the income of which was derived from the sale, leasing, rental or development, as the case may be, of similar properties or the rendering of similar services, and

(ii) the total of all amounts each of which is an amount determined in respect of a preceding taxation year of the taxpayer that ended after that time equal to the lesser of

(A) the amount determined under subparagraph (i) with respect to the taxpayer in respect of the business for that preceding year, and

(B) the amount in respect of the business deducted under subsection (1) in computing the taxpayer’s income for that preceding year.

(6) The portion of paragraph 37(9.5)(b) of the English version of the Act before subparagraph (i) is replaced by the following:

(b) partnership of which a majority-interest partner is

(7) Subsections (1) to (5) are deemed to have come into force on March 21, 2013, except that, before January 1, 2014, clause 37(6.1)(a)(i)(B) of the Act, as enacted by subsection (3), is to be read as follows:

(B) the lesser of the amounts determined immediately before that time in respect of the taxpayer under subparagraphs (1)(b)(i) and (ii), as those paragraphs read on March 29, 2012, in respect of expenditures made, and property acquired, by the taxpayer before that time, or

19. (1) Subparagraph 40(2)(a)(iii) of the English version of the Act is replaced by the following:

(iii) the purchaser of the property sold is a partnership in which the taxpayer was, immediately after the sale, a majority-interest partner;

(2) Subparagraph 40(3.4)(b)(iii) of the Act is replaced by the following:

(iii) that is immediately before the transferor is subject to a loss restriction event,

(3) Subsections 40(10) and (11) of the Act are replaced by the following:

Marginal note:Application of subsection (11)

(10) Subsection (11) applies in computing at any particular time a taxpayer’s gain or loss (in this subsection and subsection (11) referred to as the “new gain” or “new loss”, as the case may be), in respect of any part (which in this subsection and subsection (11) is referred to as the “relevant part” and which may for greater certainty be the whole) of a foreign currency debt of the taxpayer, arising from a fluctuation in the value of the currency of the foreign currency debt (other than, for greater certainty, a gain or a capital loss that arises because of the application of subsection 111(12)), if at any time before the particular time the taxpayer realized a capital loss or gain in respect of the foreign currency debt because of subsection 111(12).

Marginal note:Gain or loss on foreign currency debt

(11) If this subsection applies, the new gain is the positive amount, or the new loss is the negative amount, as the case may be, determined by the formula

A + B – C

where


is

(a) if the taxpayer would, but for any application of subsection 111(12), recognize a new gain, the amount of the new gain, determined without reference to this subsection, or

(b) if the taxpayer would, but for any application of subsection 111(12), recognize a new loss, the amount of the new loss, determined without reference to this subsection, multiplied by (–1);


is the total of all amounts each of which is that portion of the amount of a capital loss realized by the taxpayer at any time before the particular time, in respect of the foreign currency debt and because of subsection 111(12), that is reasonably attributable to

(a) the relevant part of the foreign currency debt at the particular time, or

(b) the forgiven amount, if any, (as defined in subsection 80(1)) in respect of the foreign currency debt at the particular time; and


is the total of all amounts each of which is that portion of the amount of a gain realized by the taxpayer at any time before the particular time, in respect of the foreign currency debt and because of subsection 111(12), that is reasonably attributable to

(a) the relevant part of the foreign currency debt at the particular time, or

(b) the forgiven amount, if any, (as defined in subsection 80(1)) in respect of the foreign currency debt at the particular time.

(4) Subsections (2) and (3) are deemed to have come into force on March 21, 2013.

20. Paragraph 44(7)(c) of the English version of the Act is replaced by the following:

(c) the former property of the taxpayer was disposed of to a partnership in which the taxpayer was, immediately after the disposition, a majority-interest partner.

21. (1) Subparagraph 50(1)(b)(i) of the Act is replaced by the following:

(i) the corporation has during the year become a bankrupt,

(2) Subsection (1) is deemed to have come into force on December 21, 2012.

22. (1) Clause 53(1)(e)(i)(A) of the Act is replaced by the following:

(A) paragraphs 38(a.1) to (a.3) and the fractions set out in the formula in paragraph 14(1)(b) and in subsection 14(5), paragraph 38(a) and subsection 41(1),

(2) The portion of paragraph 53(1)(r) of the Act before the formula is replaced by the following:

(r) if the time is before 2005, the property is an interest in, or a share of the capital stock of, a flow-through entity described in any of paragraphs (a) to (f) and (h) of the definition “flow-through entity” in subsection 39.1(1) and immediately after that time the taxpayer disposed of all their interests in, and shares of the capital stock of, the entity, the amount determined by the formula

(3) Subsection 53(1) of the Act is amended by striking out “and” at the end of paragraph (q) and by adding the following after paragraph (r):

(s) if the property was acquired under a derivative forward agreement, any amount required to be included in respect of the property under subparagraph 12(1)(z.7)(i) in computing the income of the taxpayer for a taxation year; and

(t) if the property is disposed of under a derivative forward agreement, any amount required to be included in respect of the property under subparagraph 12(1)(z.7)(ii) in computing the income of the taxpayer for the taxation year that includes that time.

(4) Section 53 of the Act is amended by adding the following after subsection (1.1):

Marginal note:Flow-through entity before 2005

(1.2) For the purposes of paragraph (1)(r), if the fair market value of all of a taxpayer’s interests in, and shares of the capital stock of, a flow-through entity is nil when the taxpayer disposes of those interests and shares, the fair market value of each such interest or share at that time is deemed to be $1.

(5) Paragraph 53(2)(b.2) of the Act is replaced by the following:

(b.2) if the property is property of a taxpayer that was subject to a loss restriction event at or before that time, any amount required by paragraph 111(4)(c) to be deducted in computing the adjusted cost base of the property;

(6) Subsection 53(2) of the Act is amended by striking out “and” at the end of paragraph (u) and by adding the following after paragraph (v):

(w) if the property was acquired under a derivative forward agreement, any amount deductible in respect of the property under paragraph 20(1)(xx) in computing the income of the taxpayer for a taxation year; and

(x) if the property is disposed of under a derivative forward agreement, any amount deductible in respect of the property under paragraph 20(1)(xx) in computing the income of the taxpayer for the taxation year that includes that time.

(7) Subsection (1) applies in respect of gifts made after February 25, 2008.

(8) Subsections (2) and (4) apply to dispositions that occur after 2001.

(9) Subsections (3), (5) and (6) are deemed to have come into force on March 21, 2013.

23. (1) Paragraph (c) of the definition “superficial loss” in section 54 of the Act is replaced by the following:

(c) a disposition deemed to have been made by subsection 45(1), section 48 as it read in its application before 1993, section 50 or 70, subsection 104(4), section 128.1, paragraph 132.2(3)(a) or (c), subsection 138(11.3) or 142.5(2), section 142.6 or any of subsections 144(4.1) and (4.2) and 149(10),

(2) Paragraph (f) of the definition “superficial loss” in section 54 of the Act is replaced by the following:

(f) a disposition by a taxpayer that was subject to a loss restriction event within 30 days after the disposition,

(3) Subsection (1) applies to taxation years that begin after March 20, 2013.

(4) Subsection (2) is deemed to have come into force on March 21, 2013.

24. (1) Clause 55(3)(a)(iii)(B) of the Act is replaced by the following:

(B) property (other than shares of the capital stock of the dividend recipient) more than 10% of the fair market value of which was, at any time during the series, derived from any combination of shares of the capital stock and debt of the dividend payer,

(2) Clause 55(3)(a)(iv)(B) of the Act is replaced by the following:

(B) property more than 10% of the fair market value of which was, at any time during the series, derived from any combination of shares of the capital stock and debt of the dividend recipient, and

(3) Subsection 55(3.01) of the Act is amended by striking out “and” at the end of paragraph (d) and by adding the following after paragraph (e):

(f) a significant increase in the total direct interest in a corporation that would, but for this paragraph, be described in subparagraph (3)(a)(ii) is deemed not to be described in that subparagraph if the increase was the result of the issuance of shares of the capital stock of the corporation solely for money and the shares were redeemed, acquired or cancelled by the corporation before the dividend was received;

(g) a disposition of property that would, but for this paragraph, be described in subparagraph (3)(a)(i), or a significant increase in the total direct interest in a corporation that would, but for this paragraph, be described in subparagraph (3)(a)(ii), is deemed not to be described in those subparagraphs if

(i) the dividend payer was related to the dividend recipient immediately before the dividend was received,

(ii) the dividend payer did not, as part of the series of transactions or events that includes the receipt of the dividend, cease to be related to the dividend recipient,

(iii) the disposition or increase occurred before the dividend was received,

(iv) the disposition or increase was the result of the disposition of shares to, or the acquisition of shares of, a particular corporation, and

(v) at the time the dividend was received, all the shares of the capital stock of the dividend recipient and the dividend payer were owned by the particular corporation, a corporation that controlled the particular corporation, a corporation controlled by the particular corporation or any combination of those corporations; and

(h) a winding-up of a subsidiary wholly-owned corporation to which subsection 88(1) applies, or an amalgamation to which subsection 87(11) applies of a corporation with one or more subsidiary wholly-owned corporations, is deemed not to result in a significant increase in the total direct interest, or in the total of all direct interests, in the subsidiary or subsidiaries, as the case may be.

(4) The portion of paragraph 55(3.1)(a) of the Act before subparagraph (i) is replaced by the following:

(a) in contemplation of and before a distribution (other than a distribution by a specified corporation) made in the course of the reorganization in which the dividend was received, property became property of the distributing corporation, a corporation controlled by it or a predecessor corporation of any such corporation otherwise than as a result of

(5) Clause 55(3.1)(c)(i)(A) of the Act is replaced by the following:

(A) as a result of a disposition

(I) in the ordinary course of business, or

(II) before the distribution for consideration that consists solely of money or indebtedness that is not convertible into other property, or of any combination of the two,

(6) Clause 55(3.1)(d)(i)(A) of the Act is replaced by the following:

(A) as a result of a disposition

(I) in the ordinary course of business, or

(II) before the distribution for consideration that consists solely of money or indebtedness that is not convertible into other property, or of any combination of the two,

(7) Subsections (1) and (2) apply in respect of dividends received after December 20, 2012.

(8) Subsections (3) to (6) apply in respect of dividends received after 2003.

25. (1) Subparagraph 56(1)(a)(i) of the Act is amended by striking out “and” at the end of clause (E), by adding “and” at the end of clause (F) and by adding the following after clause (F):

(G) an amount received out of or under a registered pension plan as a return of all or a portion of a contribution to the plan to the extent that the amount

(I) is a payment made to the taxpayer under subsection 147.1(19) or subparagraph 8502(d)(iii) of the Income Tax Regulations, and

(II) is not deducted in computing the taxpayer’s income for the year or a preceding taxation year,

(2) Subsection 56(8) of the French version of the Act is replaced by the following:

Marginal note:Prestations du RPC/RRQ pour années antérieures

(8) Malgré les paragraphes (1) et (6), dans le cas où une ou plusieurs sommes sont reçues par un particulier (sauf une fiducie) au cours d’une année d’imposition au titre ou en paiement intégral ou partiel d’une prestation prévue par le Régime de pensions du Canada ou par un régime provincial de pensions au sens de l’article 3 de cette loi ou seraient incluses, en l’absence du présent paragraphe, dans le calcul de son revenu pour une année d’imposition en application du paragraphe (6) et qu’une partie d’au moins 300 $ du total de ces sommes se rapporte à une ou plusieurs années d’imposition antérieures, le particulier n’a pas à inclure cette partie dans son revenu, s’il en fait le choix.

(3) Paragraph 56(8)(a) of the English version of the Act is replaced by the following:

(a) one or more amounts

(i) are received by an individual (other than a trust) in a taxation year as, on account of, in lieu of payment of or in satisfaction of, any benefit under the Canada Pension Plan or a provincial pension plan as defined in section 3 of that Act, or

(ii) would be, but for this subsection, included in computing the income of an individual for a taxation year under subsection (6), and

(4) Subsection (1) applies to contributions made on or after the later of January 1, 2014 and the day on which this Act receives royal assent.

(5) Subsections (2) and (3) apply to the 2006 and subsequent taxation years.

26. (1) Subparagraph 60(q)(i) of the Act is replaced by the following:

(i) the amount has been included in computing the income of the taxpayer for the year or a preceding taxation year as an amount described in subparagraph 56(1)(n)(i) or paragraph 56(1)(o) paid to the taxpayer by the payer,

(2) Subsection (1) is deemed to have come into force on March 1, 1994.

27. (1) Section 60.001 of the Act is repealed.

(2) Subsection (1) applies to orders made after the day on which this Act receives royal assent.

28. The portion of subsection 60.1(1) of the French version of the Act before paragraph (a) is replaced by the following:

Marginal note:Pension alimentaire

60.1 (1) Pour l’application de l’alinéa 60b) et du paragraphe 118(5), dans le cas où une ordonnance ou un accord, ou une modification s’y rapportant, prévoit le paiement d’un montant par un contribuable à une personne ou à son profit, au profit d’enfants confiés à sa garde ou à la fois au profit de la personne et de ces enfants, le montant ou une partie de celui-ci est réputé :

29. Section 60.11 of the Act is repealed.

30. (1) Subsections 66(11.4) and (11.5) of the Act are replaced by the following:

Marginal note:Loss restriction event

(11.4) If

(a) at any time a taxpayer is subject to a loss restriction event,

(b) within the 12-month period that ended immediately before that time, the taxpayer, a partnership of which the taxpayer was a majority-interest partner or a trust of which the taxpayer was a majority-interest beneficiary (as defined in subsection 251.1(3)) acquired a Canadian resource property or a foreign resource property (other than a property that was held, by the taxpayer, partnership or trust or by a person that would be affiliated with the taxpayer if section 251.1 were read without reference to the definition “controlled” in subsection 251.1(3), throughout the period that began immediately before the 12-month period began and ended at the time the property was acquired by the taxpayer, partnership or trust), and

(c) immediately before the 12-month period began the taxpayer, partnership or trust was not, or would not be if it were a corporation, a principal-business corporation,

for the purposes of subsection (4) and sections 66.2, 66.21 and 66.4, except as those provisions apply for the purposes of section 66.7, the property is deemed not to have been acquired by the taxpayer, partnership or trust, as the case may be, before that time, except that if the property has been disposed of by it before that time and not reacquired by it before that time, the property is deemed to have been acquired by the taxpayer, partnership or trust, as the case may be, immediately before it disposed of the property.

Marginal note:Affiliation  — subsection (11.4)

(11.5) For the purposes of subsection (11.4), if the taxpayer referred to in that subsection was formed or created in the 12-month period referred to in that subsection, the taxpayer is deemed to have been, throughout the period that began immediately before the 12-month period and ended immediately after it was formed or created,

(a) in existence; and

(b) affiliated with every person with whom it was affiliated (otherwise than because of a right referred to in paragraph 251(5)(b)) throughout the period that began when it was formed or created and that ended immediately before the time at which the taxpayer was subject to the loss restriction event referred to in that subsection.

Marginal note:Trust loss restriction event  — successor

(11.6) If at any time a trust is subject to a loss restriction event,

(a) for the purposes of the provisions of this Act relating to deductions in respect of drilling and exploration expenses, prospecting, exploration and development expenses, Canadian exploration and development expenses, foreign resource pool expenses, Canadian exploration expenses, Canadian development expenses and Canadian oil and gas property expenses (in this subsection referred to as “resource expenses”) incurred by the trust before that time, the following rules apply:

(i) the trust is (other than for purposes of this subsection and subsections (11.4), (11.5) and 66.7(10) to (11)) deemed to be a corporation that

(A) after that time is a successor (within the meaning assigned by any of subsections 66.7(1), (2) and (2.3) to (5)), and

(B) at that time, acquired all the properties held by the trust immediately before that time from an original owner of those properties,

(ii) if the trust did not hold a foreign resource property immediately before that time, the trust is deemed to have owned a foreign resource property immediately before that time,

(iii) a joint election is deemed to have been filed in accordance with subsections 66.7(7) and (8) in respect of the acquisition described in clause (i)(B),

(iv) the resource expenses incurred by the trust before that time are deemed to have been incurred by an original owner of the properties and not by the trust,

(v) the original owner is deemed to have been resident in Canada at every time before that time at which the trust was resident in Canada,

(vi) if at that time the trust is a member of a partnership and the property of the partnership includes a Canadian resource property or a foreign resource property,

(A) for the purposes of clause (i)(B), the trust is deemed to have held immediately before that time that portion of the partnership’s property at that time that is equal to the trust’s percentage share of the total of amounts that would be paid to all members of the partnership if it were wound up at that time, and

(B) for the purposes of clauses 66.7(1)(b)(i)(C) and (2)(b)(i)(B), subparagraph 66.7(2.3)(b)(i) and clauses 66.7(3)(b)(i)(C), (4)(b)(i)(B) and (5)(b)(i)(B) for a taxation year that ends after that time, the lesser of the following amounts is deemed to be income of the trust for the year that can reasonably be regarded as attributable to production from the property:

(I) the trust’s share of the part of the income of the partnership for the fiscal period of the partnership that ends in the year that can reasonably be regarded as attributable to the production from the property, and

(II) an amount that would be determined under subclause (I) for the year if the trust’s share of the income of the partnership for the fiscal period of the partnership that ends in the year were determined on the basis of the percentage share referred to in clause (A), and

(vii) if after that time the trust disposes of property that was at that time held by the trust to another person, subsections 66.7(1) to (5) do not apply in respect of the acquisition by the other person of the property; and

(b) if before that time, the trust or a partnership of which the trust was a member acquired a property that is a Canadian resource property, a foreign resource property or an interest in a partnership and it can reasonably be considered that one of the main purposes of the acquisition is to avoid any limitation provided in any of subsections 66.7(1) to (5) on the deduction in respect of any expenses incurred by the trust, then the trust or the partnership, as the case may be, is deemed, for the purposes of applying those subsections to or in respect of the trust, not to have acquired the property.

(2) Subparagraph 66(12.66)(b)(ii) of the Act is replaced by the following:

(ii) would be described in paragraph (h) of the definition “Canadian exploration expense” in subsection 66.1(6) if the reference to “paragraphs (a) to (d) and (f) to (g.4)” in that paragraph were read as “paragraphs (a), (d), (f) and (g.1)”, or

(3) Subsection (1) is deemed to have come into force on March 21, 2013, except that subsection 66(11.4) of the Act, as enacted by subsection (1), is to be read as follows before September 13, 2013:

(11.4) If

(a) at any time a taxpayer is subject to a loss restriction event,

(b) within the 12-month period that ended immediately before that time, the taxpayer or a partnership of which the taxpayer was a majority-interest partner acquired a Canadian resource property or a foreign resource property (other than a property that was held, by the taxpayer or partnership or by a person that would be affiliated with the taxpayer if section 251.1 were read without reference to the definition “controlled” in subsection 251.1(3), throughout the period that began immediately before the 12-month period began and ended at the time the property was acquired by the taxpayer or partnership), and

(c) immediately before the 12-month period began the taxpayer or partnership was not, or would not be if it were a corporation, a principal-business corporation,

for the purposes of subsection (4) and sections 66.2, 66.21 and 66.4, except as those provisions apply for the purposes of section 66.7, the property is deemed not to have been acquired by the taxpayer or partnership, as the case may be, before that time, except that if the property has been disposed of by it before that time and not reacquired by it before that time, the property is deemed to have been acquired by the taxpayer or partnership, as the case may be, immediately before it disposed of the property.

(4) Subsection (2) is deemed to have come into force on March 22, 2011, except that before March 21, 2013 subparagraph 66(12.66)(b)(ii) of the Act, as enacted by subsection (2), is to be read as follows:

(ii) would be described in paragraph (h) of the definition “Canadian exploration expense” in subsection 66.1(6) if the reference to “paragraphs (a) to (d) and (f) to (g.2)” in that paragraph were read as “paragraphs (a), (d), (f) and (g.1)”, or

31. (1) The definition “Canadian renewable and conservation expense” in subsection 66.1(6) of the Act is replaced by the following:

“Canadian renewable and conservation expense”

« frais liés aux énergies renouvelables et à l’économie d’énergie au Canada »

“Canadian renewable and conservation expense” has the meaning assigned by regulation, and for the purpose of determining whether an outlay or expense in respect of a prescribed energy conservation property is a Canadian renewable and conservation expense, the Technical Guide to Canadian Renewable and Conservation Expenses (CRCE), as amended from time to time and published by the Department of Natural Resources, shall apply conclusively with respect to engineering and scientific matters;

(2) Paragraph (g) of the definition “Canadian exploration expense” in subsection 66.1(6) of the Act is replaced by the following:

(g) any expense incurred by the taxpayer after November 16, 1978 and before March 21, 2013 for the purpose of bringing a new mine in a mineral resource in Canada, other than a bituminous sands deposit or an oil shale deposit, into production in reasonable commercial quantities and incurred before the new mine comes into production in such quantities, including an expense for clearing, removing overburden, stripping, sinking a mine shaft or constructing an adit or other underground entry, but not including any expense that results in revenue or can reasonably be expected to result in revenue earned before the new mine comes into production in reasonable commercial quantities, except to the extent that the total of all such expenses exceeds the total of those revenues,

(3) The definition “Canadian exploration expense” in subsection 66.1(6) of the Act is amended by adding the following after paragraph (g.2):

(g.3) any expense incurred by the taxpayer that would be described in paragraph (g) if the reference to “March 21, 2013” in that paragraph were “2017” and that is incurred

(i) under an agreement in writing entered into by the taxpayer before March 21, 2013, or

(ii) as part of the development of a new mine, if

(A) the construction of the new mine was started by, or on behalf of, the taxpayer before March 21, 2013 (and for this purpose construction does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit studies, and similar activities), or

(B) the engineering and design work for the construction of the new mine, as evidenced in writing, was started by, or on behalf of, the taxpayer before March 21, 2013 (and for this purpose engineering and design work does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit studies, and similar activities),

(g.4) any expense incurred by the taxpayer, the amount of which is determined by the formula

A × B

where


is an expense that would be described in paragraph (g) if the reference to “March 21, 2013” in that paragraph were “2018” and that is not described in paragraph (g.3), and


is

(i) 100% if the expense is incurred before 2015,

(ii) 80% if the expense is incurred in 2015,

(iii) 60% if the expense is incurred in 2016, and

(iv) 30% if the expense is incurred in 2017,

(4) Paragraph (h) of the definition “Canadian exploration expense” in subsection 66.1(6) of the Act is replaced by the following:

(h) subject to section 66.8, the taxpayer’s share of any expense referred to in any of paragraphs (a) to (d) and (f) to (g.4) incurred by a partnership in a fiscal period of the partnership, if at the end of the period the taxpayer is a member of the partnership, or

(5) The description of A in the definition “eligible oil sands mine development expense” in subsection 66.1(6) of the Act is replaced by the following:


is an expense that would be a Canadian exploration expense of the taxpayer described in paragraph (g) of the definition “Canadian exploration expense” if that paragraph were read without reference to “and before March 21, 2013” and “other than a bituminous sands deposit or an oil shale deposit”, but does not include an expense that is a specified oil sands mine development expense, and

(6) Paragraph (a) of the definition “specified oil sands mine development expense” in subsection 66.1(6) of the Act is replaced by the following:

(a) would be a Canadian exploration expense described in paragraph (g) of the definition “Canadian exploration expense” if that paragraph were read without reference to “and before March 21, 2013” and “other than a bituminous sands deposit or an oil shale deposit”,

(7) Subsection (1) is deemed to have come into force on December 21, 2012.

(8) Subsections (2), (3), (5) and (6) are deemed to have come into force on March 21, 2013.

(9) Subsection (4) is deemed to have come into force on March 22, 2011, except that before March 21, 2013 paragraph (h) of the definition “Canadian exploration expense” in subsection 66.1(6) of the Act, as enacted by subsection (4), is to be read as follows:

(h) subject to section 66.8, the taxpayer’s share of any expense referred to in any of paragraphs (a) to (d) and (f) to (g.2) incurred by a partnership in a fiscal period of the partnership, if at the end of the period the taxpayer is a member of the partnership, or

32. (1) The definition “Canadian development expense” in subsection 66.2(5) of the Act is amended by adding the following after paragraph (c.1):

(c.2) any expense, or portion of any expense, that is not a Canadian exploration expense, incurred by the taxpayer after March 20, 2013 for the purpose of bringing a new mine in a mineral resource in Canada, other than a bituminous sands deposit or an oil shale deposit, into production in reasonable commercial quantities and incurred before the new mine comes into production in such quantities, including an expense for clearing, removing overburden, stripping, sinking a mine shaft or constructing an adit or other underground entry,

(2) Subsection (1) is deemed to have come into force on March 21, 2013.

33. (1) Subparagraph 67.1(2)(e)(iii) of the Act is replaced by the following:

(iii) is paid or payable in respect of the taxpayer’s duties performed at a work site in Canada that is

(A) outside any population centre, as defined by the last Census Dictionary published by Statistics Canada before the year, that has a population of at least 40,000 individuals as determined in the last census published by Statistics Canada before the year, and

(B) at least 30 kilometres from the nearest point on the boundary of the nearest such population centre;

(2) Subsection (1) applies to the 2013 and subsequent taxation years.

34. (1) Section 70 of the Act is amended by adding the following after subsection (5.3):

Marginal note:Fair market value

(5.31) For the purposes of subsections (5) and 104(4), the fair market value at any time of any property deemed to have been disposed of at that time as a consequence of a particular individual’s death is to be determined as though the fair market value at that time of any annuity contract were the total of all amounts each of which is the amount of a premium paid on or before that time under the contract if

(a) the contract is, in respect of an LIA policy, a contract referred to in subparagraph (b)(ii) of the definition “LIA policy” in subsection 248(1); and

(b) the particular individual is the individual, in respect of the LIA policy, referred to in that subparagraph.

(2) Subsection (1) applies to taxation years that end after March 20, 2013.

35. (1) The portion of subsection 75(2) of the Act before paragraph (a) is replaced by the following:

Marginal note:Trusts

(2) If a trust, that is resident in Canada and that was created in any manner whatever since 1934, holds property on condition

(2) Paragraphs 75(3)(c) to (c.3) of the Act are replaced by the following:

(c) by a qualifying environmental trust; or

(3) Subsections (1) and (2) apply to taxation years that end after March 20, 2013.

36. (1) The definition “relevant loss balance” in subsection 80(1) of the Act is replaced by the following:

“relevant loss balance”

« solde de pertes applicable »

“relevant loss balance”, at a particular time for a commercial obligation and in respect of a debtor’s non-capital loss, farm loss, restricted farm loss or net capital loss, as the case may be, for a particular taxation year, is

(a) subject to paragraph (b), the amount of such loss that would be deductible in computing the debtor’s taxable income or taxable income earned in Canada, as the case may be, for the taxation year that includes that time if

(i) the debtor had sufficient incomes from all sources and sufficient taxable capital gains,

(ii) subsections (3) and (4) did not apply to reduce such loss at or after that time, and

(iii) paragraph 111(4)(a) and subsection 111(5) did not apply to the debtor, and

(b) nil if the debtor is a taxpayer that was at a previous time subject to a loss restriction event and the particular year ended before the previous time, unless

(i) the obligation was issued by the debtor before, and not in contemplation of, the loss restriction event, or

(ii) all or substantially all of the proceeds from the issue of the obligation were used to satisfy the principal amount of another obligation to which subparagraph (i) or this subparagraph would apply if the other obligation were still outstanding;

(2) The portion of the definition “unrecognized loss” in subsection 80(1) of the Act before paragraph (b) is replaced by the following:

“unrecognized loss”

« perte non constatée »

“unrecognized loss”, at a particular time, in respect of an obligation issued by a debtor, from the disposition of a property, is the amount that would, but for subparagraph 40(2)(g)(ii), be a capital loss from the disposition by the debtor at or before the particular time of a debt or other right to receive an amount, except that if the debtor is a taxpayer that is subject to a loss restriction event before the particular time and after the time of the disposition, the unrecognized loss at the particular time in respect of the obligation is nil unless

(a) the obligation was issued by the debtor before, and not in contemplation of, the loss restriction event, or

(3) Subparagraph 80(15)(c)(iv) of the Act is replaced by the following:

(iv) if the member is a taxpayer that was subject to a loss restriction event at a particular time that is before the end of that fiscal period and before the taxpayer became a member of the partnership, and the partnership obligation was issued before the particular time,

(A) subject to the application of this subparagraph to the taxpayer after the particular time and before the end of that fiscal period, the obligation referred to in subparagraph (i) is deemed to have been issued by the member after the particular time, and

(B) subparagraph (b)(ii) of the definition “relevant loss balance” in subsection (1), paragraph (f) of the definition “successor pool” in that subsection and paragraph (b) of the definition “unrecognized loss” in that subsection do not apply in respect of the loss restriction event, and

(4) Subsections (1) to (3) are deemed to have come into force on March 21, 2013.

37. (1) Paragraph 80.04(4)(h) of the Act is replaced by the following:

(h) if the transferee is a taxpayer that is subject to a loss restriction event after the time of issue and the transferee and the debtor were, if the transferee is a corporation, not related to each other  —  or, if the transferee is a trust, not affiliated with each other  —  immediately before the loss restriction event,

(i) the obligation referred to in paragraph (e) is deemed to have been issued after the loss restriction event, and

(ii) subparagraph (b)(ii) of the definition “relevant loss balance” in subsection 80(1), paragraph (f) of the definition “successor pool” in that subsection and paragraph (b) of the definition “unrecognized loss” in that subsection do not apply in respect of the loss restriction event,

(2) Subsection (1) is deemed to have come into force on March 21, 2013.

38. (1) The Act is amended by adding the following after section 80.5:

Marginal note:Synthetic disposition

80.6 (1) If a synthetic disposition arrangement is entered into in respect of a property owned by a taxpayer and the synthetic disposition period of the arrangement is one year or more, the taxpayer is deemed

(a) to have disposed of the property immediately before the beginning of the synthetic disposition period for proceeds equal to its fair market value at the beginning of the synthetic disposition period; and

(b) to have reacquired the property at the beginning of the synthetic disposition period at a cost equal to that fair market value.

Marginal note:Exception

(2) Subsection (1) does not apply in respect of a property owned by a taxpayer if

(a) the disposition referred to in subsection (1) would not result in the realization of a capital gain or income;

(b) the property is a mark-to-market property (as defined in subsection 142.2(1)) of the taxpayer;

(c) the synthetic disposition arrangement referred to in subsection (1) is a lease of tangible property or, for civil law, corporeal property;

(d) the arrangement is an exchange of property to which subsection 51(1) applies; or

(e) the property is disposed of as part of the arrangement, within one year after the day on which the synthetic disposition period of the arrangement begins.

(2) Subsection (1) applies to agreements and arrangements entered into after March 20, 2013. Subsection (1) also applies to an agreement or arrangement entered into before March 21, 2013, the term of which is extended after March 20, 2013, as if the agreement or arrangement were entered into at the time of the extension.

39. (1) Paragraph 87(2)(g.1) of the Act is replaced by the following:

Marginal note:Continuation

(g.1) for the purposes of sections 12.4 and 26, subsection 97(3) and section 256.1, the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation;

(2) Paragraph 87(2)(oo.1) of the Act is amended by striking out “and” at the end of subparagraph (ii), by adding “and” at the end of subparagraph (iii) and by adding the following after subparagraph (iii):

(iv) a qualifying income limit for the particular year equal to the total of all amounts each of which is a predecessor corporation’s qualifying income limit for its taxation year that ended immediately before the amalgamation;

(3) Subsection (1) is deemed to have come into force on March 21, 2013.

(4) Subsection (2) applies to amalgamations that occur after February 25, 2008.

40. (1) Subparagraph 88(1)(c.2)(i) of the Act is replaced by the following:

(i) “specified person”, at any time, means

(A) the parent,

(B) each person who would be related to the parent at that time if

(I) this Act were read without reference to paragraph 251(5)(b), and

(II) each person who is the child of a deceased individual were related to each brother or sister of the individual and to each child of a deceased brother or sister of the individual, and

(C) if the time is before the incorporation of the parent, each person who is described in clause (B) throughout the period that begins at the time the parent is incorporated and ends at the time that is immediately before the beginning of the winding-up,

(i.1) a person described in clause (i)(B) or (C) is deemed not to be a specified person if it can reasonably be considered that one of the main purposes of one or more transactions or events is to cause the person to be a specified person so as to prevent a property that is distributed to the parent on the winding-up from being an ineligible property for the purposes of paragraph (c),

(2) Subparagraph 88(1)(c.2)(iii) of the Act is amended by striking out “and” at the end of clause (A) and by adding the following after clause (A):

(A.1) a corporation controlled by another corporation is, at any time, deemed not to own any shares of the capital stock of the other corporation if, at that time, the corporation does not have a direct or an indirect interest in any of the shares of the capital stock of the other corporation,

(A.2) the definition “specified shareholder” in subsection 248(1) is to be read without reference to its paragraph (a) in respect of any share of the capital stock of the subsidiary that the person would, but for this clause, be deemed to own solely because the person has a right described in paragraph 251(5)(b) to acquire shares of the capital stock of a corporation that

(I) is controlled by the subsidiary, and

(II) does not have a direct or an indirect interest in any of the shares of the capital stock of the subsidiary, and

(3) Paragraph 88(1)(c.2) of the Act is amended by striking out “and” at the end of subparagraph (ii), by adding “and” at the end of subparagraph (iii) and by adding the following after subparagraph (iii):

(iv) property that is distributed to the parent on the winding-up is deemed not to be acquired by a person if the person acquired the property before the acquisition of control referred to in clause (c)(vi)(A) and the property is not owned by the person at any time after that acquisition of control;

(4) Subparagraph 88(1)(c.3)(i) of the Act is replaced by the following:

(i) property (other than a specified property) owned by the person at any time after the acquisition of control referred to in clause (c)(vi)(A) more than 10% of the fair market value of which is, at that time, attributable to the particular property or properties, and

(5) Subparagraph 88(1)(c.4)(ii) of the Act is replaced by the following:

(ii) an indebtedness that was issued

(A) by the parent as consideration for the acquisition of a share of the capital stock of the subsidiary by the parent, or

(B) for consideration that consists solely of money,

(6) Subparagraphs 88(1)(c.4)(v) and (vi) of the Act are replaced by the following:

(v) if the subsidiary was formed on the amalgamation of two or more predecessor corporations at least one of which was a subsidiary wholly-owned corporation of the parent,

(A) a share of the capital stock of the subsidiary that was issued on the amalgamation and that is, before the beginning of the winding-up,

(I) redeemed, acquired or cancelled by the subsidiary for consideration that consists solely of money or shares of the capital stock of the parent, or of any combination of the two, or

(II) exchanged for shares of the capital stock of the parent, or

(B) a share of the capital stock of the parent issued on the amalgamation in exchange for a share of the capital stock of a predecessor corporation, and

(vi) a share of the capital stock of a corporation issued to a person described in clause (c)(vi)(B) if all the shares of the capital stock of the subsidiary were acquired by the parent for consideration that consists solely of money;

(7) Paragraph 88(1)(c.4) of the Act, as amended by subsection (6), is amended by adding “and” at the end of subparagraph (iv), by striking out “and” at the end of subparagraph (v) and by repealing subparagraph (vi).

(8) Subsection 88(1) of the Act is amended by adding the following after paragraph (c.8):

(c.9) for the purposes of paragraph (c.4), a reference to a share of the capital stock of a corporation includes a right to acquire a share of the capital stock of the corporation;

(9) Subparagraph 88(1)(d)(ii) of the Act is replaced by the following:

(ii) the amount designated in respect of any such capital property may not exceed the amount determined by the formula

A – (B + C)

where


is the fair market value of the property at the time the parent last acquired control of the subsidiary,


is the greater of the cost amount to the subsidiary of the property at the time the parent last acquired control of the subsidiary and the cost amount to the subsidiary of the property immediately before the winding-up, and


is the prescribed amount, and

(10) Subparagraph 88(1)(e.9)(i) of the Act is amended by striking out “and” at the end of clause (A), by adding “and” at the end of clause (B) and by adding the following after clause (B):

(C) the parent’s qualifying income limit for that last year is deemed to be the total of

(I) its qualifying income limit (determined before applying this paragraph to the winding-up) for that last year, and

(II) the total of the subsidiary’s qualifying income limits (determined without reference to subparagraph (iii)) for its taxation years that ended in that preceding calendar year,

(11) Subparagraph 88(1)(e.9)(ii) of the Act is amended by striking out “and” at the end of clause (A), by adding “and” at the end of clause (B) and by adding the following after clause (B):

(C) the parent’s qualifying income limit for that preceding taxation year is deemed to be the total of

(I) its qualifying income limit (determined before applying this paragraph to the winding-up) for that preceding taxation year, and

(II) the total of the subsidiary’s qualifying income limits (determined without reference to subparagraph (iii)) for the subsidiary’s taxation years that end in the calendar year in which that preceding taxation year ended, and

(12) Subparagraph 88(1)(e.9)(iii) of the Act is replaced by the following:

(iii) where the parent and the subsidiary are associated with each other in the current year, the subsidiary’s taxable income, the subsidiary’s business limit and the subsidiary’s qualifying income limit for each taxation year that ends after the first time that the parent receives an asset of the subsidiary on the winding-up are deemed to be nil;

(13) Subsections (1) to (3), (5), (6) and (8) apply to windings-up that begin, and amalgamations that occur, after 2001.

(14) Subsection (4) applies to windings-up that begin, and amalgamations that occur, after December 20, 2012.

(15) Subsections (7) and (9) apply to windings-up that begin, and amalgamations that occur, after December 20, 2012 other than  —  if a taxable Canadian corporation (in this subsection referred to as the “parent corporation”) has acquired control of another taxable Canadian corporation (in this subsection referred to as the “subsidiary corporation”)  —  an amalgamation of the parent corporation and the subsidiary corporation that occurs, or a winding-up of the subsidiary corporation into the parent corporation that begins, before July 2013 if

(a) the parent corporation acquired control of the subsidiary corporation before December 21, 2012, or was obligated as evidenced in writing before December 21, 2012 to acquire control of the subsidiary corporation (except that the parent corporation shall not be considered to be obligated if, as a result of amendments to the Act, it may be excused from the obligation to acquire control); and

(b) the parent corporation had the intention as evidenced in writing before December 21, 2012 to amalgamate with, or wind up, the subsidiary corporation.

(16) Subsections (10) to (12) apply to windings-up that begin after February 25, 2008.

41. (1) The portion of paragraph (d) of the definition “capital dividend account” in subsection 89(1) of the Act after subparagraph (i) is replaced by the following:

(ii) all amounts each of which is the proceeds of a life insurance policy (other than an LIA policy) of which the corporation was not a beneficiary on or before June 28, 1982 received by the corporation in the period and after May 23, 1985 in consequence of the death of any person

exceeds the total of all amounts each of which is

(iii) the adjusted cost basis (within the meaning assigned by subsection 148(9)) of a policy referred to in subparagraph (i) or (ii) to the corporation immediately before the death, or

(iv) if the policy is a 10/8 policy immediately before the death and the death occurs after 2013, the amount outstanding, immediately before the death, of the borrowing that is described in subparagraph (a)(i) of the definition “10/8 policy” in subsection 248(1) in respect of the policy,

(2) Subsection (1) applies to taxation years that end after March 20, 2013.

42. (1) Subparagraph (b)(vi) of the definition “arm’s length transfer” in subsection 94(1) of the English version of the Act is replaced by the following:

(vi) a payment made before 2002 to a trust, to a corporation controlled by a trust or to a partnership of which a trust is a majority-interest partner in repayment of or otherwise in respect of a loan made by a trust, corporation or partnership to the transferor, or

(2) The portion of subparagraph (b)(vii) of the definition “arm’s length transfer” in subsection 94(1) of the English version of the Act before clause (A) is replaced by the following:

(vii) a payment made after 2001 to a trust, to a corporation controlled by the trust or to a partnership of which the trust is a majority-interest partner, in repayment of or otherwise in respect of a particular loan made by the trust, corporation or partnership to the transferor and either

(3) Subparagraph (b)(ii) of the definition “specified party” in subsection 94(1) of the English version of the Act is replaced by the following:

(ii) would be a controlled foreign affiliate of a partnership, of which the particular person is a majority-interest partner, if the partnership were a person resident in Canada at that time;

(4) The portion of paragraph (c) of the definition “specified party” in subsection 94(1) of the English version of the Act before subparagraph (i) is replaced by the following:

(c) a person, or a partnership of which the particular person is a majority-interest partner, for which it is reasonable to conclude that the benefit referred to in subparagraph (8)(a)(iv) was conferred

(5) The portion of paragraph (d) of the definition “specified party” in subsection 94(1) of the English version of the Act before subparagraph (i) is replaced by the following:

(d) a corporation in which the particular person, or partnership of which the particular person is a majority-interest partner, is a shareholder if

(6) Paragraph 94(4)(b) of the Act is replaced by the following:

(b) subsections (8.1) and (8.2), paragraph (14)(a), subsections 70(6) and 73(1), the definition “Canadian partnership” in subsection 102(1), paragraph 107.4(1)(c) and paragraph (a) of the definition “mutual fund trust” in subsection 132(6);

(7) Paragraph 94(4)(h) of the Act is replaced by the following:

(h) determining whether subsection 75(2) applies.

(8) Section 94 of the Act is amended by adding the following after subsection (8):

Marginal note:Application of subsection (8.2)

(8.1) Subsection (8.2) applies at any time to a particular person, and to a particular property, in respect of a non-resident trust, if at that time

(a) the particular person is resident in Canada; and

(b) the trust holds the particular property on condition that the particular property or property substituted for the particular property

(i) may

(A) revert to the particular person, or

(B) pass to one or more persons or partnerships to be determined by the particular person, or

(ii) shall not be disposed of by the trust during the existence of the particular person, except with the particular person’s consent or in accordance with the particular person’s direction.

Marginal note:Deemed transfer of restricted property

(8.2) If this subsection applies at any time to a particular person, and to a particular property, in respect of a non-resident trust, then in applying this section in respect of the trust for a taxation year of the trust that includes that time

(a) every transfer or loan made at or before that time by the particular person (or by a trust or partnership of which the particular person was a beneficiary or member, as the case may be) of the particular property, of another property for which the particular property is a substitute, or of property from which the particular property derives, or the other property derived, its value in whole or in part, directly or indirectly, is deemed to be a transfer or loan, as the case may be, by the particular person

(i) that is not an arm’s length transfer, and

(ii) that is, for the purposes of paragraph (2)(c) and subsection (9), a transfer or loan of restricted property; and

(b) paragraph (2)(c) is to be read without reference to subparagraph (2)(c)(iii) in its application to each transfer and loan described in paragraph (a).

(9) Subsections (6) to (8) apply to taxation years that end after March 20, 2013.

43. (1) Subsection 96(1.6) of the Act is replaced by the following:

Marginal note:Members deemed carrying on business

(1.6) If a partnership carries on a business in Canada at any time, each taxpayer who is deemed by paragraph (1.1)(a) to be a member of the partnership at that time is deemed to carry on the business in Canada at that time for the purposes of subsection 2(3), sections 34.1 and 150 and (subject to subsection 34.2(18)) section 34.2.

(2) Subsection (1) applies to taxation years that end after March 22, 2011.

44. (1) The portion of paragraph 107(4.1)(b) of the Act before subparagraph (i) is replaced by the following:

(b) subsection 75(2) was applicable (determined without its reference to “while the person is resident in Canada” and as if subsection 75(3) as it read before March 21, 2013 were read without reference to its paragraph (c.2)), or subsection 94(8.2) was applicable (determined without reference to paragraph 94(8.1)(a)), at a particular time in respect of any property of

(2) Subsection (1) applies to taxation years that end after March 20, 2013.

45. (1) Subsection 107.3(3) of the Act is replaced by the following:

Marginal note:Ceasing to be qualifying environmental trust

(3) If at any time a trust ceases to be a qualifying environmental trust,

(a) for the purposes of subsections 111(5.5) and 149(10), the trust is deemed to cease at that time to be exempt from tax under this Part on its taxable income;

(b) each beneficiary under the trust immediately before that time is deemed to receive at that time from the trust an amount equal to the percentage of the fair market value of the properties of the trust immediately after that time that can reasonably be considered to be the beneficiary’s interest in the trust; and

(c) each beneficiary under the trust is deemed to acquire immediately after that time an interest in the trust at a cost equal to the amount deemed by paragraph (b) to be received by the beneficiary from the trust.

(2) Subsection (1) is deemed to have come into force on March 21, 2013.

46. (1) The formula in paragraph 110.6(2)(a) of the Act is replaced by the following:

[$400,000 – (A + B + C + D)] × E

(2) Subsections 110.6(31) and (32) of the Act are replaced by the following:

Marginal note:Reserve limit

(31) If an amount is included in an individual’s income for a particular taxation year because of subparagraph 40(1)(a)(ii) in respect of a disposition of property in a preceding taxation year that is qualified farm property, qualified fishing property or a qualified small business corporation share, the total of all amounts deductible by the individual for the particular year under this section is reduced by the amount, if any, determined by the formula

A – B

where


is the total of all amounts each of which is an amount deductible under this section by the individual for the particular year or a preceding taxation year, computed without reference to this subsection; and


is the total of all amounts each of which is an amount that would be deductible under this section by the individual for the particular year or a preceding taxation year if the individual had not for any preceding taxation year claimed a reserve under subparagraph 40(1)(a)(iii) and had claimed, for each taxation year ending before the particular year, the amount that would have been deductible under this section.

(3) Subsection (1) applies to the 2014 and subsequent taxation years.

(4) Subsection (2) applies to taxation years that begin after March 19, 2007.

47. (1) Subsections 111(4) to (5.3) of the Act are replaced by the following:

Marginal note:Loss restriction event  —  capital losses

(4) Notwithstanding subsection (1), and subject to subsection (5.5), if at any time (in this subsection referred to as “that time”) a taxpayer is subject to a loss restriction event,

(a) no amount in respect of a net capital loss for a taxation year that ended before that time is deductible in computing the taxpayer’s taxable income for a taxation year that ends after that time;

(b) no amount in respect of a net capital loss for a taxation year that ends after that time is deductible in computing the taxpayer’s taxable income for a taxation year that ends before that time;

(c) in computing the adjusted cost base to the taxpayer at and after that time of each capital property, other than a depreciable property, of the taxpayer immediately before that time, there is to be deducted the amount, if any, by which the adjusted cost base to the taxpayer of the property immediately before that time exceeds its fair market value immediately before that time;

(d) each amount required by paragraph (c) to be deducted in computing the adjusted cost base to the taxpayer of a property is deemed to be a capital loss of the taxpayer for the taxation year that ended immediately before that time from the disposition of the property;

(e) if the taxpayer designates  —  in its return of income under this Part for the taxation year that ended immediately before that time or in a prescribed form filed with the Minister on or before the day that is 90 days after the day on which a notice of assessment of tax payable for the year or notification that no tax is payable for the year is sent to the taxpayer  —  a property that was a capital property of the taxpayer immediately before that time (other than a property in respect of which an amount would, but for this paragraph, be required by paragraph (c) to be deducted in computing its adjusted cost base to the taxpayer or a depreciable property of a prescribed class to which, but for this paragraph, subsection (5.1) would apply),

(i) the taxpayer is deemed to have disposed of the property at the time that is immediately before the time that is immediately before that time for proceeds of disposition equal to the lesser of

(A) the fair market value of the property immediately before that time, and

(B) the greater of the adjusted cost base to the taxpayer of the property immediately before the disposition and such amount as is designated by the taxpayer in respect of the property,

(ii) subject to subparagraph (iii), the taxpayer is deemed to have reacquired the property at that time at a cost equal to those proceeds of disposition, and

(iii) if the property is depreciable property of the taxpayer the capital cost of which to the taxpayer immediately before the disposition exceeds those proceeds of disposition, for the purposes of sections 13 and 20 and any regulations made for the purposes of paragraph 20(1)(a),

(A) the capital cost of the property to the taxpayer at that time is deemed to be the amount that was its capital cost immediately before the disposition, and

(B) the excess is deemed to have been allowed to the taxpayer in respect of the property under regulations made for the purposes of paragraph 20(1)(a) in computing the taxpayer’s income for taxation years that ended before that time; and

(f) for the purposes of the definition “capital dividend account” in subsection 89(1), each amount that because of paragraph (d) or (e) is a capital loss or gain of the taxpayer from a disposition of a property for the taxation year that ended immediately before that time is deemed to be a capital loss or gain, as the case may be, of the taxpayer from the disposition of the property immediately before the time that a capital property of the taxpayer in respect of which paragraph (e) would be applicable would be deemed by that paragraph to have been disposed of by the taxpayer.

Marginal note:Loss restriction event  —  non-capital losses and farm losses

(5) If at any time a taxpayer is subject to a loss restriction event,

(a) no amount in respect of the taxpayer’s non-capital loss or farm loss for a taxation year that ended before that time is deductible by the taxpayer for a taxation year that ends after that time, except that the portion of the taxpayer’s non-capital loss or farm loss, as the case may be, for a taxation year that ended before that time as may reasonably be regarded as the taxpayer’s loss from carrying on a business and, if a business was carried on by the taxpayer in that year, the portion of the non-capital loss as may reasonably be regarded as being in respect of an amount deductible under paragraph 110(1)(k) in computing the taxpayer’s taxable income for that year is deductible by the taxpayer for a particular taxation year that ends after that time

(i) only if that business was carried on by the taxpayer for profit or with a reasonable expectation of profit throughout the particular year, and

(ii) only to the extent of the total of the taxpayer’s income for the particular year from

(A) that business, and

(B) if properties were sold, leased, rented or developed or services rendered in the course of carrying on that business before that time, any other business substantially all the income of which was derived from the sale, leasing, rental or development, as the case may be, of similar properties or the rendering of similar services; and

(b) no amount in respect of the taxpayer’s non-capital loss or farm loss for a taxation year that ends after that time is deductible by the taxpayer for a taxation year that ended before that time, except that the portion of the taxpayer’s non-capital loss or farm loss, as the case may be, for a taxation year that ended after that time as may reasonably be regarded as the taxpayer’s loss from carrying on a business and, if a business was carried on by the taxpayer in that year, the portion of the non-capital loss as may reasonably be regarded as being in respect of an amount deductible under paragraph 110(1)(k) in computing the taxpayer’s taxable income for that year is deductible by the taxpayer for a particular taxation year that ends before that time

(i) only if throughout the taxation year and in the particular year that business was carried on by the taxpayer for profit or with a reasonable expectation of profit, and

(ii) only to the extent of the taxpayer’s income for the particular year from

(A) that business, and

(B) if properties were sold, leased, rented or developed or services rendered in the course of carrying on that business before that time, any other business substantially all the income of which was derived from the sale, leasing, rental or development, as the case may be, of similar properties or the rendering of similar services.

Marginal note:Loss restriction event  —  UCC computation

(5.1) Subject to subsection (5.5), if at any time a taxpayer is subject to a loss restriction event and, if this Act were read without reference to subsection 13(24), the undepreciated capital cost to the taxpayer of depreciable property of a prescribed class immediately before that time would have exceeded the total of

(a) the fair market value of all the property of that class immediately before that time, and

(b) the amount in respect of property of that class otherwise allowed under regulations made under paragraph 20(1)(a) or deductible under subsection 20(16) in computing the taxpayer’s income for the taxation year that ended immediately before that time,

the excess is to be deducted in computing the taxpayer’s income for the taxation year that ended immediately before that time and is deemed to have been allowed in respect of property of that class under regulations made under paragraph 20(1)(a).

Marginal note:Loss restriction event  —  CEC computation

(5.2) Subject to subsection (5.5), if at any time a taxpayer is subject to a loss restriction event and immediately before that time the taxpayer’s cumulative eligible capital in respect of a business exceeds the total of

(a) 3/4 of the fair market value of the eligible capital property in respect of the business, and

(b) the amount otherwise deducted under paragraph 20(1)(b) in computing the taxpayer’s income from the business for the taxation year that ended immediately before that time,

the excess is to be deducted under paragraph 20(1)(b) in computing the taxpayer’s income for the taxation year that ended immediately before that time.

Marginal note:Loss restriction event  —  doubtful debts and bad debts

(5.3) Subject to subsection (5.5), if at any time a taxpayer is subject to a loss restriction event,

(a) no amount may be deducted under paragraph 20(1)(l) in computing the taxpayer’s income for the taxation year that ended immediately before that time; and

(b) in respect of each debt owing to the taxpayer immediately before that time

(i) the amount that is the greatest amount that would, but for this subsection and subsection 26(2) of this Act and subsection 33(1) of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, have been deductible under paragraph 20(1)(l)

(A) is deemed to be a separate debt, and

(B) notwithstanding any other provision of this Act, is to be deducted as a bad debt under paragraph 20(1)(p) in computing the taxpayer’s income for its taxation year that ended immediately before that time, and

(ii) the amount by which the debt exceeds that separate debt is deemed to be a separate debt incurred at the same time and under the same circumstances as the debt was incurred.

(2) Subsection 111(5.5) of the Act is replaced by the following:

Marginal note:Loss restriction event  —  special rules

(5.5) If at any time a taxpayer is subject to a loss restriction event,

(a) paragraphs (4)(c) to (f) and subsections (5.1) to (5.3) do not apply to the taxpayer in respect of the loss restriction event if at that time the taxpayer becomes or ceases to be exempt from tax under this Part on its taxable income; and

(b) if it can reasonably be considered that the main reason that the taxpayer is subject to the loss restriction event is to cause paragraph (4)(d) or any of subsections (5.1) to (5.3) to apply with respect to the loss restriction event, the following do not apply with respect to the loss restriction event:

(i) that provision and paragraph (4)(e), and

(ii) if that provision is paragraph (4)(d), paragraph (4)(c).

(3) Paragraph (b) of the description of A in the definition “farm loss” in subsection 111(8) of the Act is replaced by the following:

(b) the amount that would be the taxpayer’s non-capital loss for the year if the amount determined for D in the definition “non-capital loss” in this subsection were nil, and

(4) Paragraph (c) of the description of C in the definition “net capital loss” in subsection 111(8) of the Act is replaced by the following:

(c) if the taxpayer was subject to a loss restriction event before the end of the year and after the end of the taxpayer’s tenth preceding taxation year, nil, and

(5) Subsection 111(12) of the Act is replaced by the following:

Marginal note:Foreign currency debt on loss restriction event

(12) For the purposes of subsection (4), if at any time a taxpayer owes a foreign currency debt in respect of which the taxpayer would have had, if the foreign currency debt had been repaid at that time, a capital loss or gain, the taxpayer is deemed to own at the time (in this subsection referred to as the “measurement time”) that is immediately before that time a property

(a) the adjusted cost base of which at the measurement time is the amount determined by the formula

A + B – C

where


is the amount of principal owed by the taxpayer under the foreign currency debt at the measurement time, calculated, for greater certainty, using the exchange rate applicable at the measurement time,


is the portion of any gain, previously recognized in respect of the foreign currency debt because of this section, that is reasonably attributable to the amount described in A, and


is the portion of any capital loss previously recognized in respect of the foreign currency debt because of this section, that is reasonably attributable to the amount described in A; and

(b) the fair market value of which is the amount that would be the amount of the principal owed by the taxpayer under the foreign currency debt at the measurement time if that amount were calculated using the exchange rate applicable at the time of the original borrowing.

(6) Subsections (1), (2), (4) and (5) are deemed to have come into force on March 21, 2013.

48. (1) Section 112 of the Act is amended by adding the following after subsection (7):

Marginal note:Synthetic disposition  — holding period

(8) If a synthetic disposition arrangement is entered into in respect of a property owned by a taxpayer and the synthetic disposition period of the arrangement is 30 days or more, for the purposes of paragraphs (3.01)(b) and (3.11)(b), subclauses (3.2)(a)(ii)(C)(I) and (3.3)(a)(ii)(C)(I) and paragraphs (3.31)(b), (3.32)(b), (4.01)(b), (4.11)(b), (4.21)(b), (4.22)(b), (5.1)(b) and (5.21)(b) and subsection (9), the taxpayer is deemed not to own the property during the synthetic disposition period.

Marginal note:Exception

(9) Subsection (8) does not apply in respect of a property owned by a taxpayer in respect of a synthetic disposition arrangement if the taxpayer owned the property throughout the 365-day period (determined without reference to this subsection) that ended immediately before the synthetic disposition period of the arrangement.

(2) Subject to subsection (3), subsection (1) applies to:

(a) an agreement or arrangement entered into after March 20, 2013; and

(b) an agreement or arrangement entered into before March 21, 2013, the term of which is extended after March 20, 2013, as if the agreement or arrangement were entered into at the time of the extension.

(3) In respect of an agreement or arrangement referred to in subsection (2), that is entered into before September 13, 2013 and the term of which is not extended after September 12, 2013, subsection 112(9) of the Act, as enacted by subsection (1), is to be read as follows:

(9) Subsection (8) does not apply in respect of a property owned by a taxpayer in respect of a synthetic disposition arrangement if the taxpayer owned the property throughout the 365-day period that ended immediately before the synthetic disposition period of the arrangement.

49. (1) The portion of subsection 117.1(1) of the Act before paragraph (a) is replaced by the following:

Marginal note:Annual adjustment

117.1 (1) The amount of $1,000 referred to in the formula in paragraph 8(1)(s), each of the amounts expressed in dollars in subparagraph 6(1)(b)(v.1), subsection 117(2), the description of B in subsection 118(1), subsection 118(2), paragraph (a) of the description of B in subsection 118(10), subsection 118.01(2), the descriptions of C and F in subsection 118.2(1) and subsections 118.3(1), 122.5(3) and 122.51(1) and (2), the amount of $400,000 referred to in the formula in paragraph 110.6(2)(a), the amounts of $925 and $1,680 referred to in the description of A, and the amounts of $10,500 and $14,500 referred to in the description of B, in the formula in subsection 122.7(2), the amount of $462.50 referred to in the description of C, and the amounts of $16,667 and $25,700 referred to in the description of D, in the formula in subsection 122.7(3), and each of the amounts expressed in dollars in Part I.2 in relation to tax payable under this Part or Part I.2 for a taxation year shall be adjusted so that the amount to be used under those provisions for the year is the total of

(2) Subsection (1) applies to the 2015 and subsequent taxation years.

50. (1) Subparagraph 118.5(3)(c)(iv) of the Act is replaced by the following:

(iv) the provision of financial assistance to students, except to the extent that, if this Act were read without reference to subsection 56(3), the amount of the assistance would be required to be included in computing the income, and not be deductible in computing the taxable income, of the students to whom the assistance is provided, or

(2) Subsection (1) applies to the 2012 and subsequent taxation years.

51. (1) The definition “non-portfolio property” in subsection 122.1(1) of the Act is replaced by the following:

“non-portfolio property”

« bien hors portefeuille »

“non-portfolio property”, of a particular entity for a taxation year, means a property, held by the particular entity at any time in the taxation year, that is

(a) a security of a subject entity (other than a portfolio investment entity), if at that time the particular entity holds

(i) securities of the subject entity that have a total fair market value that is greater than 10% of the equity value of the subject entity, or

(ii) securities of the subject entity that, together with all the securities that the particular entity holds of entities affiliated with the subject entity, have a total fair market value that is greater than 50% of the equity value of the particular entity;

(b) a Canadian real, immovable or resource property, if at any time in the taxation year the total fair market value of all properties held by the particular entity that are Canadian real, immovable or resource properties is greater than 50% of the equity value of the particular entity; or

(c) a property that the particular entity, or a person or partnership with whom the particular entity does not deal at arm’s length, uses at that time in the course of carrying on a business in Canada.

(2) Paragraph (b) of the definition “excluded subsidiary entity” in subsection 122.1(1) of the Act is amended by striking out “or” at the end of subparagraph (iv) and by replacing subparagraph (v) with the following:

(v) a person or partnership that does not have, in connection with the holding of a security of the entity, property the value of which is determined, all or in part, by reference to a security that is listed or traded on a stock exchange or other public market, or

(vi) an excluded subsidiary entity for the taxation year.

(3) Subsection (1) applies to taxation years that end after July 20, 2011.

(4) Subsection (2) is deemed to have come into force on October 31, 2006, except that it does not apply for the purpose of determining if an entity is an excluded subsidiary entity for taxation years of the entity that began before July 21, 2011 if the entity so elects in writing filed with the Minister of National Revenue within 365 days after the day on which this Act receives royal assent.

52. Subsection 122.61(3) of the Act is replaced by the following:

Marginal note:Non-residents and part-year residents

(3) For the purposes of this section, if a person was non-resident at any time in a taxation year, the person’s income for the year is, for greater certainty, deemed to be the amount that would have been the person’s income for the year had the person been resident in Canada throughout the year.

53. Section 122.64 of the Act is repealed.

54. (1) Subparagraph (a)(iv) of the definition “full rate taxable income” in subsection 123.4(1) of the Act is replaced by the following:

(iv) if the corporation is a credit union throughout the year and the corporation deducted an amount for the year under subsection 125(1) (because of the application of subsections 137(3) and (4)), the amount, if any, that is the product of the amount, if any, determined for B in subsection 137(3) multiplied by the amount determined for C in subsection 137(3) in respect of the corporation for the year;

(2) Subsection (1) applies to taxation years that end after March 20, 2013.

55. (1) The descriptions of G and H in the definition “specified partnership income” in subsection 125(7) of the Act are replaced by the following:


is the total of all amounts each of which is the corporation’s share of the income (determined in accordance with subdivision j of Division B) of the partnership for a fiscal period of the business that ends in the year, or an amount included in the corporation’s income for the year in respect of the business under any of subsections 34.2(2), (3) and (12), and


is the total of all amounts deducted in computing the corporation’s income for the year from the business (other than amounts that were deducted in computing the income of the partnership from the business) or in respect of the business under subsection 34.2(4) or (11), and

(2) Subsection (1) applies to taxation years that end after March 22, 2011.

56. (1) Section 126 of the Act is amended by adding the following after subsection (4.4):

Marginal note:Synthetic disposition  — holding period

(4.5) If a synthetic disposition arrangement is entered into in respect of a property owned by a taxpayer and the synthetic disposition period of the arrangement is 30 days or more,

(a) for the purpose of determining whether the period referred to in subsection (4.2) is one year or less, the period is deemed to begin at the earlier of

(i) the time that is immediately before the particular time referred to in subsection (4.2), and

(ii) the end, if any, of the synthetic disposition period; and

(b) for the purposes of subsection (4.6), the taxpayer is deemed not to own the property during the synthetic disposition period.

Marginal note:Exception

(4.6) Subsection (4.5) does not apply in respect of a property owned by a taxpayer in respect of a synthetic disposition arrangement if the taxpayer owned the property throughout the one-year period (determined without reference to this subsection) that ended immediately before the synthetic disposition period of the arrangement.

(2) Subject to subsection (3), subsection (1) applies to:

(a) an agreement or arrangement entered into after March 20, 2013; and

(b) an agreement or arrangement entered into before March 21, 2013, the term of which is extended after March 20, 2013, as if the agreement or arrangement were entered into at the time of the extension.

(3) In respect of an agreement or arrangement referred to in subsection (2), that is entered into before September 13, 2013 and the term of which is not extended after September 12, 2013, subsection 126(4.6) of the Act, as enacted by subsection (1), is to be read as follows:

(4.6) Subsection (4.5) does not apply in respect of a property owned by a taxpayer in respect of a synthetic disposition arrangement if the taxpayer owned the property throughout the one-year period that ended immediately before the synthetic disposition period of the arrangement.

57. (1) The definition “non-government assistance” in subsection 127(9) of the Act is replaced by the following:

“non-government assistance”

« aide non gouvernementale »

“non-government assistance” means an amount that would be included in income under paragraph 12(1)(x) if that paragraph were read without reference to subparagraphs 12(1)(x)(v) to (vii);

(2) Paragraphs (j) and (k) of the definition “investment tax credit” in subsection 127(9) of the Act are replaced by the following:

(j) if the taxpayer is subject to a loss restriction event at any time before the end of the year, the amount determined under subsection (9.1) in respect of the taxpayer, and

(k) if the taxpayer is subject to a loss restriction event at any time after the end of the year, the amount determined under subsection (9.2) in respect of the taxpayer,

(3) The definition “pre-production mining expenditure” in subsection 127(9) of the Act is amended by striking out “or” at the end of subparagraph (a)(i) and by replacing subparagraph (a)(ii) with the following:

(ii) described in paragraph (g), (g.3) or (g.4) and not in paragraph (f), of the definition “Canadian exploration expense” in subsection 66.1(6) if the expression “mineral resource” in paragraph (g) of that definition were defined to mean a mineral deposit from which the principal mineral to be extracted is diamond, a base or precious metal deposit, or a mineral deposit from which the principal mineral to be extracted is an industrial mineral that, when refined, results in a base or precious metal, and

(4) Clause (k)(iii)(B) of the definition “specified percentage” in subsection 127(9) of the Act is replaced by the following:

(B) in 2015, 5% if the expense is described in paragraph (a)(ii) of the definition “pre-production mining expenditure” because of paragraph (g.4) of the definition “Canadian exploration expense” in subsection 66.1(6), and 4% otherwise, and

(5) The portion of subsection 127(9.1) of the Act before paragraph (a) is replaced by the following:

Marginal note:Loss restriction event before end of year

(9.1) If a taxpayer is subject to a loss restriction event at any time (in this subsection referred to as “that time”) before the end of a taxation year of the taxpayer, the amount determined for the purposes of paragraph (j) of the definition “investment tax credit” in subsection (9) with respect to the taxpayer is the amount, if any, by which

(6) Subparagraph 127(9.1)(d)(i) of the Act is replaced by the following:

(i) if throughout the year the taxpayer carried on a particular business in the course of which a property was acquired, or an expenditure was made, before that time in respect of which an amount is included in computing its investment tax credit at the end of the year, the amount, if any, by which the total of all amounts each of which is

(A) its income for the year from the particular business, or

(B) its income for the year from any other business substantially all the income of which was derived from the sale, leasing, rental or development of properties or the rendering of services similar to the properties sold, leased, rented or developed, or the services rendered, as the case may be, by the taxpayer in carrying on the particular business before that time

exceeds

(C) the total of all amounts each of which is an amount deducted under paragraph 111(1)(a) or (d) for the year by the taxpayer in respect of a non-capital loss or a farm loss, as the case may be, for a taxation year in respect of the particular business or the other business,

(7) The portion of subsection 127(9.2) of the Act before paragraph (a) is replaced by the following:

Marginal note:Loss restriction event after end of year

(9.2) If a taxpayer is subject to a loss restriction event at any time (in this subsection referred to as “that time”) after the end of a taxation year of the taxpayer, the amount determined for the purposes of paragraph (k) of the definition “investment tax credit” in subsection (9) is the amount, if any, by which

(8) Subparagraph 127(9.2)(d)(i) of the Act is replaced by the following:

(i) if the taxpayer acquired a property or made an expenditure, in the course of carrying on a particular business throughout the portion of a taxation year that is after that time, in respect of which an amount is included in computing its investment tax credit at the end of the year, the amount, if any, by which the total of all amounts each of which is

(A) its income for the year from the particular business, or

(B) if the taxpayer carried on a particular business in the year, its income for the year from any other business substantially all the income of which was derived from the sale, leasing, rental or development of properties or the rendering of services similar to the properties sold, leased, rented or developed, or the services rendered, as the case may be, by the taxpayer in carrying on the particular business before that time

exceeds

(C) the total of all amounts each of which is an amount deducted under paragraph 111(1)(a) or (d) for the year by the taxpayer in respect of a non-capital loss or a farm loss, as the case may be, for a taxation year in respect of the particular business or the other business

(9) Subsection (1) is deemed to have come into force on December 21, 2012.

(10) Subsections (2) to (8) are deemed to have come into force on March 21, 2013.

58. (1) The definition “qualifying corporation” in subsection 127.1(2) of the Act is replaced by the following:

“qualifying corporation”

« société admissible »

“qualifying corporation”, for a particular taxation year that ends in a calendar year, means a particular corporation that is a Canadian-controlled private corporation in the particular taxation year the taxable income of which for its immediately preceding taxation year  —  together with, if the particular corporation is associated in the particular taxation year with one or more other corporations (in this subsection referred to as “associated corporations”), the taxable income of each associated corporation for its last taxation year that ended in the preceding calendar year (determined before taking into consideration the specified future tax consequences for that last year)  —  does not exceed the qualifying income limit, if any, of the particular corporation for the particular taxation year;

(2) Subsection (1) applies to taxation years that begin after December 21, 2012.

59. (1) Subsection 127.4(2) of the Act is repealed.

(2) Paragraph 127.4(5)(a) of the Act is replaced by the following:

(a) $500, and

(3) Paragraph 127.4(5)(a) of the Act, as enacted by subsection (2), is replaced by the following:

(a) $250, and

(4) Subsection 127.4(5) of the Act, as amended by subsection (3), is repealed.

(5) Paragraph 127.4(6)(a) of the Act is replaced by the following:

(a) 10% of the net cost to the individual (or to a qualifying trust for the individual in respect of the share) for the original acquisition of the share by the individual or by the trust, if the taxation year for which a claim is made under subsection (2) in respect of the original acquisition is 2015,

(a.1) 5% of the net cost to the individual (or to a qualifying trust for the individual in respect of the share) for the original acquisition of the share by the individual or by the trust, if the taxation year for which a claim is made under subsection (2) in respect of the original acquisition is 2016,

(6) Subsection 127.4(6) of the Act, as amended by subsection (5), is repealed.

(7) Subsections (1), (4) and (6) apply to the 2017 and subsequent taxation years.

(8) Subsection (2) applies to the 2015 taxation year.

(9) Subsection (3) applies to the 2016 taxation year.

(10) Subsection (5) applies to the 2015 and 2016 taxation years.

60. (1) The portion of paragraph 127.52(1)(c.1) of the Act before subparagraph (i) is replaced by the following:

(c.1) if, during a partnership’s fiscal period that ends in the year (other than a fiscal period that ends because of subsection 99(1)), the individual’s interest in the partnership is an interest for which an identification number is required to be, or has been, obtained under section 237.1,

(2) Clause 127.52(1)(i)(i)(B) of the Act is amended by striking out “and” at the end of subclause (I) and by replacing subclause (II) with the following:

(II) paragraphs (b) to (c.3), (e) and (e.1) of this subsection, as they read in respect of taxation years that began after 1994 and ended before 2012, applied in computing the individual’s non-capital loss, restricted farm loss, farm loss and limited partnership loss for any of those years, and

(III) paragraphs (b) to (c.3), (e) and (e.1) of this subsection applied in computing the individual’s non-capital loss, restricted farm loss, farm loss and limited partnership loss for any taxation year that ends after 2011, and

(3) Clause 127.52(1)(i)(ii)(B) of the Act is amended by striking out “and” at the end of subclause (I) and by replacing subclause (II) with the following:

(II) paragraphs (c.1) and (d) of this subsection, as they read in respect of taxation years that began after 1994 and ended before 2012, applied in computing the individual’s net capital loss for any of those years, and

(III) paragraphs (c.1) and (d) of this subsection applied in computing the individual’s net capital loss for any taxation year that ends after 2011; and

(4) Subsections (1) to (3) apply to the 2012 and subsequent taxation years and, if an individual files an election in writing with the Minister of National Revenue before the day that is 90 days after the day on which this Act receives royal assent, for the individual

(a) subsections (1) to (3) also apply to the 2006 to 2011 taxation years; and

(b) the references in clauses 127.52(1)(i)(i)(B) and (ii)(B) of the Act, as amended by subsections (2) and (3), to “2011” and “2012” are to be read as “2005” and “2006”, respectively.

(5) Notwithstanding subsection 152(4) of the Act, the Minister of National Revenue may make such assessments, reassessments and determinations under Part I of the Act as are necessary to give effect to an election under subsection (4).

61. (1) Subsection 136(1) of the Act is replaced by the following:

Marginal note:Cooperative not private corporation

136. (1) Notwithstanding any other provision of this Act, a cooperative corporation that would, but for this section, be a private corporation is deemed not to be a private corporation except for the purposes of section 15.1, paragraphs 87(2)(vv) and (ww) (including, for greater certainty, in applying those paragraphs as provided under paragraph 88(1)(e.2)), the definitions “excessive eligible dividend designation”, “general rate income pool” and “low rate income pool” in subsection 89(1), subsections 89(4) to (6) and (8) to (10), sections 123.4, 125, 125.1, 127 and 127.1, the definition “mark-to-market property” in subsection 142.2(1), sections 152 and 157, subsection 185.2(3), the definition “small business corporation” in subsection 248(1) (as it applies for the purposes of paragraph 39(1)(c)) and subsection 249(3.1).

(2) Subsection (1) applies to taxation years that begin after December 21, 2012.

62. (1) Subsection 137(4.1) of the Act is replaced by the following:

Marginal note:Payments in respect of shares

(4.1) Notwithstanding any other provision of this Act, an amount paid or payable by a credit union to a person is deemed to be paid or payable, as the case may be, by the credit union as interest and to be received or receivable, as the case may be, by the person as interest, if

(a) the amount is in respect of a share held by the person of the capital stock of the credit union, other than an amount paid or payable as or on account of a reduction of the paid-up capital, redemption, acquisition or cancellation of the share by the credit union to the extent of the paid-up capital of the share;

(b) the share is not listed on a stock exchange; and

(c) the person is

(i) a member of the credit union, or

(ii) a member of another credit union if the share is issued by the credit union after March 28, 2012 and the other credit union is a member of the credit union.

(2) Subsection (1) applies to the 2012 and subsequent taxation years.

63. The portion of subsection 142.2(2) of the Act before paragraph (a) is replaced by the following:

Marginal note:Significant interest

(2) For the purposes of the definitions “excluded property” and “specified debt obligation” in subsection (1) and subsection 142.6(1.6), a taxpayer has a significant interest in a corporation at any time if

64. (1) Section 147.1 of the Act is amended by adding the following after subsection (18):

Marginal note:Reasonable error

(19) The administrator of a registered pension plan may make a payment (other than a payment made to avoid the revocation of the registration of the plan) that is a return of all or a portion of a contribution made by a member of the plan, or an employer who participates in the plan, if

(a) the contribution was made to the plan as a consequence of a reasonable error;

(b) the payment is made to the member or employer, as the case may be, who made the contribution; and

(c) the payment is made no later than December 31 of the year following the year in which the contribution was made.

(2) Subsection (1) applies to contributions made on or after the later of January 1, 2014 and the day on which this Act receives royal assent.

65. (1) Section 148 of the Act is amended by adding the following after subsection (4):

Marginal note:10/8 policy surrender

(5) If a policyholder has after March 20, 2013 and before April 2014 disposed of an interest in a 10/8 policy because of a partial or complete surrender of the policy, the policyholder may deduct in computing their income for the taxation year in which the disposition occurs an amount that does not exceed the least of

(a) the portion of an amount, included under subsection (1) in computing their income for the year in respect of the disposition, that is attributable to an investment account described in paragraph (b) of the definition “10/8 policy” in subsection 248(1) in respect of the policy,

(b) the total of all amounts each of which is an amount, to the extent that the amount has not otherwise been included in determining an amount under this paragraph, of a payment made after March 20, 2013 and before April 2014 that reduces the amount outstanding of a borrowing or policy loan, as the case may be, described in paragraph (a) of the definition “10/8 policy” in subsection 248(1) in respect of the policy, and

(c) the total of all amounts each of which is an amount, to the extent that the amount has not otherwise been included in determining an amount under this paragraph, that the policyholder is entitled to receive as a result of the disposition and that is paid after March 20, 2013 and before April 2014 out of an investment account described in paragraph (b) of the definition “10/8 policy” in subsection 248(1) in respect of the policy.

(2) Subsection (1) applies to taxation years that end after March 20, 2013.

66. (1) Subsection 149(10) of the Act is replaced by the following:

Marginal note:Becoming or ceasing to be exempt

(10) If at any time (in this subsection referred to as “that time”), a person  —  that is a corporation or, if that time is after September 12, 2013, a trust  —  becomes or ceases to be exempt from tax under this Part on its taxable income otherwise than by reason of paragraph (1)(t), the following rules apply:

(a) the taxation year of the person that would, but for this paragraph, have included that time is deemed to end immediately before that time, a new taxation year of the person is deemed to begin at that time and, for the purpose of determining the person’s fiscal period after that time, the person is deemed not to have established a fiscal period before that time;

(a.1) for the purpose of computing the person’s income for its first taxation year that ends after that time, the person is deemed to have deducted under sections 20, 138 and 140 in computing the person’s income for its taxation year that ended immediately before that time, the greatest amount that could have been claimed or deducted by the person for that year as a reserve under those sections;

(b) the person is deemed to have disposed, at the time (in this subsection referred to as the “disposition time”) that is immediately before the time that is immediately before that time, of each property held by the person immediately before that time for an amount equal to its fair market value at that time and to have reacquired the property at that time at a cost equal to that fair market value;

(c) for the purposes of applying sections 37, 65 to 66.4, 66.7, 111 and 126, subsections 127(5) to (36) and section 127.3 to the person, the person is deemed to be a new corporation or trust, as the case may be, the first taxation year of which began at that time; and

(d) there is to be deducted under paragraph 20(1)(b) in computing the person’s income from a business for the taxation year that ended immediately before that time the amount, if any, by which the person’s cumulative eligible capital immediately before the disposition time in respect of the business exceeds the total of

(i) 3/4 of the fair market value of the eligible capital property in respect of the business, and

(ii) the amount otherwise deducted under paragraph 20(1)(b) in computing the person’s income from the business for the taxation year that ended immediately before that time.

(2) Subsection (1) is deemed to have come into force on March 21, 2013.

67. (1) Paragraph 152(4)(c) of the Act is replaced by the following:

(b.1) an information return described in subsection 237.1(7) or 237.3(2) that is required to be filed in respect of a deduction or claim made by the taxpayer in relation to a tax shelter, or in respect of a tax benefit (as defined in subsection 245(1)) to the taxpayer from an avoidance transaction (as defined in subsection 245(3)), is not filed as and when required, and the assessment, reassessment or additional assessment is made before the day that is three years after the day on which the information return is filed;

(b.2) the assessment, reassessment or additional assessment is made before the day that is three years after the end of the normal reassessment period for the taxpayer in respect of the year and if

(i) the taxpayer, or a partnership of which the taxpayer is a member, has failed to file for the year a prescribed form as and when required under subsection 233.3(3) or to report on the prescribed form the information required in respect of a specified foreign property (as defined in subsection 233.3(1)) held by the taxpayer at any time during the year, and

(ii) the taxpayer has failed to report, in the return of income for the year, an amount in respect of a specified foreign property that is required to be included in computing the taxpayer’s income for the year;

(c) the taxpayer or person filing the return of income has filed with the Minister a waiver in prescribed form within the additional three-year period referred to in paragraph (b) or (b.1);

(c.1) the taxpayer or person filing the return of income has filed with the Minister a waiver in prescribed form within the additional three-year period referred to in paragraph (b.2); or

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

Marginal note:Extended period assessment

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

(3) The portion of paragraph 152(4.01)(b) of the Act before subparagraph (i) is replaced by the following:

(b) if paragraph (4)(b), (b.1) or (c) applies to the assessment, reassessment or additional assessment,

(4) Paragraph 152(4.01)(b) of the Act is amended by striking out “or” at the end of subparagraph (v), by adding “or” at the end of subparagraph (vi) and by adding the following after subparagraph (vi):

(vii) the deduction, claim or tax benefit referred to in paragraph (4)(b.1).

(5) Subsection 152(4.1) of the Act is replaced by the following:

Marginal note:If waiver revoked

(4.1) If the Minister would, but for this subsection, be entitled to reassess, make an additional assessment or assess tax, interest or penalties by virtue only of the filing of a waiver under subparagraph (4)(a)(ii) or paragraph (4)(c) or (c.1), the Minister may not make such a reassessment, additional assessment or assessment after the day that is six months after the date on which a notice of revocation of the waiver in prescribed form is filed.

(6) Subsections (1) and (5) apply to the 2013 and subsequent taxation years, except that, in its application to taxation years that end before March 21, 2013, subsection 152(4) of the Act, as amended by subsection (1), is to be read without reference to paragraph (b.1).

(7) Subsections (2) to (4) apply to taxation years that end after March 20, 2013.

68. (1) Section 156 of the Act is amended by adding the following after subsection (3):

Marginal note:Payments by SIFT trusts

(4) Subsections (1) to (3) and section 156.1 do not apply to a SIFT trust.

(2) Subsection (1) applies to taxation years that begin after July 20, 2011.

69. (1) Clause 157(1.5)(a)(ii)(B) of the English version of the Act is replaced by the following:

(B) the amount obtained when the estimated tax payable by the corporation, if any, under Parts VI and XIII.1 for the taxation year is divided by the number of months that end in the taxation year and after the particular time; and

(2) Paragraph 157(1.5)(b) of the English version of the Act is replaced by the following:

(b) the remainder of the taxes payable by it under this Part and Parts VI, VI.1 and XIII.1 for the taxation year on or before its balance-due day for the year.

(3) Section 157 of the Act is amended by adding the following after subsection (1.5):

Marginal note:Application to SIFT trusts

(2) Subsections (1), (2.1) and (4) apply to a SIFT trust with any modifications that the circumstances require.

(4) Subsections (1) and (2) apply to taxation years that begin after 2007.

(5) Subsection (3) applies to taxation years that begin after July 20, 2011.

70. (1) Section 162 of the Act is amended by adding the following after subsection (5):

Marginal note:Failure to provide claim preparer information

(5.1) Every person or partnership who makes, or participates in, assents to or acquiesces in the making of, a false statement or omission in respect of claim preparer information required to be included in an SR&ED form is jointly and severally, or solidarily, liable, together with any claim preparer of the form, to a penalty equal to $1,000.

Marginal note:Due diligence

(5.2) A claim preparer of an SR&ED form is not liable for a penalty under subsection (5.1) in respect of a false statement or omission if the claim preparer has exercised the degree of care, diligence and skill to prevent the making of the false statement or omission that a reasonably prudent person would have exercised in comparable circumstances.

Marginal note:Definitions

(5.3) The following definitions apply in this subsection and subsections (5.1) and (5.2).

“claim preparer”

« préparateur »

“claim preparer”, of an SR&ED form, means a person or partnership who agrees to accept consideration to prepare, or assist in the preparation of, the form but does not include an employee who prepares, or assists in the preparation of, the form in the course of performing their duties of employment.

“claim preparer information”

« renseignements relatifs au préparateur »

“claim preparer information” means prescribed information regarding

(a) the identity of the claim preparer, if any, of an SR&ED form, and

(b) the arrangement under which the claim preparer agrees to accept consideration in respect of the preparation of the form.

“SR&ED form”

« formulaire de RS&DE »

“SR&ED form” means a prescribed form required to be filed under subsection 37(11).

(2) Subsection (1) comes into force on the later of January 1, 2014 and the day on which this Act receives royal assent.

71. (1) The Act is amended by adding the following after section 163.2:

Marginal note:Definitions

163.3 (1) The following definitions apply in this section.

“electronic cash register”

« caisse enregistreuse électronique »

“electronic cash register” means a device that keeps a register or supporting documents through the means of an electronic device or computer system designed to record transaction data or any other electronic point-of-sale system.

“electronic suppression of sales device”

« appareil de suppression électronique des ventes »

“electronic suppression of sales device” means

(a) a software program that falsifies the records of electronic cash registers, including transaction data and transaction reports; or

(b) a hidden programming option, whether preinstalled or installed at a later time, embedded in the operating system of an electronic cash register or hardwired into the electronic cash register that

(i) may be used to create a virtual second till, or

(ii) may eliminate or manipulate transaction records, which may or may not be preserved in digital formats, in order to represent the actual or manipulated record of transactions in the electronic cash register.

“service”

« service »

“service” has the same meaning as in subsection 123(1) of the Excise Tax Act.

Marginal note:Penalty  —  use

(2) Every person that uses, or that knowingly, or under circumstances attributable to neglect, carelessness or wilful default, participates in, assents to or acquiesces in the use of, an electronic suppression of sales device or a similar device or software in relation to records that are required to be kept by any person under section 230 is liable to a penalty of

(a) unless paragraph (b) applies, $5,000; or

(b) $50,000 if the action of the person occurs after the Minister has assessed a penalty payable by the person under this section or section 285.01 of the Excise Tax Act.

Marginal note:Penalty  — possession

(3) Every person that acquires or possesses an electronic suppression of sales device or a right in respect of an electronic suppression of sales device that is, or is intended to be, capable of being used in relation to records that are required to be kept by any person under section 230 is liable to a penalty of

(a) unless paragraph (b) applies, $5,000; or

(b) $50,000 if the action of the person occurs after the Minister has assessed a penalty payable by the person under this section or section 285.01 of the Excise Tax Act.

Marginal note:Penalty  — manufacturing or making available

(4) Every person that designs, develops, manufactures, possesses for sale, offers for sale, sells, transfers or otherwise makes available to another person, or that supplies installation, upgrade or maintenance services for, an electronic suppression of sales device that is, or is intended to be, capable of being used in relation to records that are required to be kept by any person under section 230 is liable to a penalty of

(a) unless paragraph (b) or (c) applies, $10,000;

(b) unless paragraph (c) applies, $50,000 if the action of the person occurs after the Minister has assessed a penalty payable by the person under subsection (2) or (3) or subsection 285.01(2) or (3) of the Excise Tax Act; or

(c) $100,000 if the action of the person occurs after the Minister has assessed a penalty payable by the person under this subsection or subsection 285.01(4) of the Excise Tax Act.

Marginal note:Assessment

(5) The Minister may at any time assess a taxpayer in respect of any penalty payable by a person under subsections (2) to (4), and the provisions of this Division apply, with any modifications that the circumstances require, in respect of an assessment made under subsections (2) to (4) as though it had been made under section 152.

Marginal note:Limitation

(6) Despite section 152, if at any time the Minister assesses a penalty payable by a person under subsections (2) to (4), the Minister is not to assess, at or after that time, another penalty payable by the person under subsections (2) to (4) that is in respect of an action of the person that occurred before that time.

Marginal note:Certain defences not available

(7) Except as otherwise provided in subsection (8), a person does not have a defence in relation to a penalty assessed under subsections (2) to (4) by reason that the person exercised due diligence to prevent the action from occurring.

Marginal note:Due diligence

(8) A person is not liable for a penalty under subsection (3) or (4) in respect of an action of the person if the person exercised the degree of care, diligence and skill that a reasonably prudent person would have exercised in comparable circumstances to prevent the action from occurring.

Marginal note:Assessment vacated

(9) For the purposes of subsections (2) to (8), if an assessment of a penalty under subsections (2) to (4) is vacated, the penalty is deemed to have never been assessed.

(2) Subsection (1) comes into force on the later of the day on which this Act receives royal assent and January 1, 2014.

72. (1) The portion of subsection 197(6) of the Act before paragraph (a) is replaced by the following:

Marginal note:Provisions applicable to Part

(6) Subsection 150(2), section 152, subsections 157(1), (2.1) and (4), sections 158, 159 and 161 to 167 and Division J of Part I apply to this Part, with any modifications that the circumstances require, and for greater certainty,

(2) Subsection (1) applies to taxation years that begin after July 20, 2011.

73. (1) The portion of subsection 204.81(1) of the Act before paragraph (a) is replaced by the following:

Marginal note:Conditions for registration

204.81 (1) The Minister may register a corporation for the purposes of this Part if the corporation’s application for registration was received before March 21, 2013 and if, in the opinion of the Minister, it complies with the following conditions:

(2) Subsection (1) is deemed to have come into force on March 21, 2013.

74. (1) The portion of subsection 207.01(1) of the Act before the first definition is replaced by the following:

Marginal note:Definitions

207.01 (1) The following definitions and the definitions in subsections 146(1) (other than the definition “benefit”), 146.2(1) and 146.3(1) apply in this Part and Part XLIX of the Income Tax Regulations.

(2) The definition “specified non-qualified investment income” in subsection 207.01(1) of the Act is replaced by the following:

“specified non-qualified investment income”

« revenu de placement non admissible déterminé »

“specified non-qualified investment income”, in respect of a registered plan and its controlling individual, means income (determined without reference to paragraph 82(1)(b)), or a capital gain, that is reasonably attributable, directly or indirectly, to an amount in respect of which tax was payable under Part I by a trust governed by the registered plan or by any other registered plan of the controlling individual.

(3) Paragraph (a) of the definition “advantage” in subsection 207.01(1) of the Act is amended by striking out “and” at the end of subparagraph (iii), by adding “and” at the end of subparagraph (iv) and by adding the following after subparagraph (iv):

(v) a benefit provided under an incentive program that is  —  in a normal commercial or investment context in which parties deal with each other at arm’s length and act prudently, knowledgeably and willingly  —  offered to a broad class of persons, if it is reasonable to conclude that none of the main purposes of the program is to enable a person or partnership to benefit from the exemption from tax under Part I of any amount in respect of the plan;

(4) Clause (b)(i)(A) of the definition “advantage” in subsection 207.01(1) of the Act is replaced by the following:

(A) would not have occurred in a normal commercial or investment context in which parties deal with each other at arm’s length and act prudently, knowledgeably and willingly, and

(5) The portion of paragraph (c) of the definition “advantage” in subsection 207.01(1) of the Act before subparagraph (i) is replaced by the following:

(c) a benefit that is income (determined without reference to paragraph 82(1)(b)), or a capital gain, that is reasonably attributable, directly or indirectly, to

(6) Paragraph (c) of the definition “exempt contribution” in subsection 207.01(1) of the Act is replaced by the following:

(c) the survivor designates, in prescribed form filed in prescribed manner within 30 days after the day on which the contribution is made (or at any later time that is acceptable to the Minister), the contribution in relation to the survivor payment; and

(7) The portion of the definition “prohibited investment” in subsection 207.01(1) of the Act before paragraph (a) is replaced by the following:

“prohibited investment”

« placement interdit »

“prohibited investment”, at any time for a trust governed by a registered plan, means property (other than excluded property for the trust) that is at that time

(8) Subparagraph (b)(ii) of the definition “prohibited investment” in subsection 207.01(1) of the Act is replaced by the following:

(ii) a person or partnership that does not deal at arm’s length with the controlling individual;

(9) The portion of the definition “RRSP strip” in subsection 207.01(1) of the Act before paragraph (a) is replaced by the following:

“RRSP strip”

« sommme découlant d’un dépouillement de REER »

“RRSP strip”, in respect of a RRIF or RRSP, means the amount of a reduction in the fair market value of property held in connection with the RRIF or RRSP, if the value is reduced as part of a transaction or event or a series of transactions or events one of the main purposes of which is to enable the controlling individual of the RRIF or RRSP, or a person who does not deal at arm’s length with the controlling individual, to obtain a benefit in respect of property held in connection with the RRIF or RRSP or to obtain a benefit as a result of the reduction, but does not include an amount that is

(10) The definition “RRSP strip” in subsection 207.01(1) of the Act is amended by adding “or” at the end of paragraph (b), by striking out “or” at the end of paragraph (c) and by repealing paragraph (d).

(11) Paragraph (c) of the definition “swap transaction” in subsection 207.01(1) of the Act is replaced by the following:

(c) a transfer of a prohibited investment or a non-qualified investment from the registered plan for consideration, in circumstances where the controlling individual is entitled to a refund under subsection 207.04(4) on the transfer;

(12) The definition “swap transaction” in subsection 207.01(1) of the Act is amended by adding the following after paragraph (d):

(e) a transfer of a prohibited investment from the registered plan for consideration, if subsection (13) applies in respect of all or part of the consideration received by the registered plan;

(f) a transfer of property from the registered plan in consideration for the issuance of a debt obligation that is an excluded property for the trust governed by the registered plan; or

(g) a payment into the registered plan that is a payment of, or in satisfaction of, the principal amount of, or interest on, a debt obligation that is an excluded property for the trust governed by the registered plan.

(13) The descriptions of A and B in the definition “transitional prohibited investment benefit” in subsection 207.01(1) of the Act are replaced by the following:


is the total of all amounts each of which is income (determined without reference to paragraph 82(1)(b)) earned, or a capital gain realized, in the taxation year by a trust governed by a RRIF or RRSP of the controlling individual that

(a) is reasonably attributable, directly or indirectly, to a property that is a prohibited investment, and a transitional prohibited property, for the trust, and

(b) in the case of income, is earned after March 22, 2011 and, in the case of a capital gain, accrues after March 22, 2011; and


is the total of all amounts each of which is a capital loss (determined without reference to subparagraph 40(2)(g)(i) and subsection 40(3.4)) realized in the taxation year by a trust governed by a RRIF or RRSP of the controlling individual that

(a) is reasonably attributable, directly or indirectly, to a property that is a prohibited investment, and a transitional prohibited property, for the trust, and

(b) accrues after March 22, 2011.

(14) Subsection 207.01(1) of the Act is amended by adding the following in alphabetical order:

“equity”

« droit sur l’actif »

“equity”, of a corporation, trust or partnership, means

(a) in the case of a corporation, a share of the capital stock of the corporation;

(b) in the case of a trust, an income or capital interest in the trust; and

(c) in the case of a partnership, an interest as a member of the partnership.

“excluded property”

« bien exclu »

“excluded property”, at any time for a trust governed by a registered plan, means

(a) property described in paragraph 4900(1)(j.1) of the Income Tax Regulations;

(b) an equity of a mutual fund corporation, mutual fund trust or registered investment if

(i) either

(A) the equity is equity of a mutual fund corporation or mutual fund trust that derives all or substantially all its value from one or more mutual funds that are subject to, and substantially comply with, the requirements of National Instrument 81–102 Mutual Funds, as amended from time to time, of the Canadian Securities Administrators, or

(B) the corporation, trust or registered investment follows a reasonable policy of investment diversification,

(ii) the time is

(A) during the 24-month period that begins on the day on which the first taxation year of the corporation, trust or registered investment begins,

(B) during the 24-month period that ends on the day on which the last taxation year of the corporation, trust or registered investment ends, or

(C) where the equity is a share of the capital stock of a mutual fund corporation and the share derives all or substantially all its value from a particular mutual fund,

(I) during the 24-month period that begins on the day on which the particular mutual fund is established, or

(II) during the 24-month period that ends on the day on which the particular mutual fund is terminated,

(iii) it is reasonable to conclude that none of the main purposes of the structure of the corporation, trust or registered investment, or of the terms and conditions of the equity, is to accommodate transactions or events that could affect the fair market value of the property held by the trust governed by the registered plan in a manner that would not occur in a normal commercial or investment context in which parties deal with each other at arm’s length and act prudently, knowledgeably and willingly, and

(iv) it is reasonable to conclude that none of the main purposes of the incorporation, establishment or operation of the corporation, trust or registered investment, or of the particular mutual fund, is to benefit from this paragraph; or

(c) equity of a corporation, partnership or trust (in this paragraph referred to as the “investment entity”) if at that time

(i) the fair market value of the equity (in this paragraph referred to as the “arm’s length equity”) of the investment entity that is owned by persons who deal at arm’s length with the controlling individual of the registered plan is at least 90% of the fair market value of all the equity of the investment entity,

(ii) the total fair market value of the arm’s length equity and the debt of the investment entity that is owned by persons who deal at arm’s length with the controlling individual is at least 90% of the total fair market value of all the equity and debt of the investment entity,

(iii) the controlling individual, either alone or together with persons with whom the controlling individual does not deal at arm’s length, does not have the right to cast at least 10% of the votes, if any, that could be cast regarding the governance of the investment entity,

(iv) the specific terms and conditions of each share or unit of equity of the investment entity held by the trust governed by the registered plan are the same as, or substantially similar to, the terms and conditions of particular equity that is included in the arm’s length equity,

(v) the fair market value of the particular equity referred to in subparagraph (iv) is equal to at least 10% of the total fair market value of all equity of the investment entity having the specific terms and conditions referred to in subparagraph (iv) or terms and conditions that are substantially similar to those terms and conditions,

(vi) the controlling individual deals at arm’s length with the investment entity, and

(vii) it is reasonable to conclude that none of the main purposes of the structure of the investment entity, or of the terms and conditions of the equity, is to accommodate transactions or events that could affect the fair market value of the property held by the trust governed by the registered plan in a manner that would not occur in a normal commercial or investment context in which parties deal with each other at arm’s length and act prudently, knowledgeably and willingly.

“transitional prohibited property”

« bien interdit transitoire »

“transitional prohibited property”, at any time, for a particular trust governed by a RRIF or RRSP of a controlling individual, means a property that is held by the particular trust at that time, that was held on March 22, 2011 by a trust governed by a RRIF or RRSP of the controlling individual and that was a prohibited investment for that trust on March 23, 2011.

(15) Paragraph 207.01(4)(a) of the Act is replaced by the following:

(a) in the case of a corporation, the individual would, at that time, be a specified shareholder of the corporation if the references in the portion of the definition “specified shareholder” in subsection 248(1) before paragraph (a) to “in a taxation year” and “at any time in the year” were read as “at any time” and “at that time”, respectively;

(16) Section 207.01 of the Act is amended by adding the following after subsection (5):

Marginal note:Deemed disposition and reacquisition of investments

(6) If, at any time, a property held by a trust governed by a registered plan becomes, or ceases to be, a prohibited investment or non-qualified investment for the trust, the trust is deemed to have disposed of the property immediately before that time for proceeds of disposition equal to the fair market value of the property at that time and to have reacquired the property at that time at a cost equal to that fair market value.

Marginal note:Adjusted cost base

(7) For the purpose of computing the adjusted cost base to a trust governed by a RRIF or RRSP of a property that is a transitional prohibited property for the trust, the cost to the trust of the property until the property is disposed of by the trust is deemed to be equal to the fair market value of the property at the end of March 22, 2011.

Marginal note:Prohibited investment status

(8) Subsection (9) applies in respect of a property if

(a) the property would, in the absence of subsection (9), have ceased at any time (in this subsection and subsection (9) referred to as the “relevant time”) to be a prohibited investment for a trust governed by a RRIF or RRSP of a controlling individual;

(b) the property is a transitional prohibited property for the trust immediately before the relevant time;

(c) the controlling individual elected under subsection 207.05(4); and

(d) the controlling individual elects in prescribed form that subsection (9) apply in respect of the property and the election is filed with the Minister on or before the day that is 90 days after the end of the taxation year of the controlling individual that includes the relevant time.

Marginal note:Prohibited investment status

(9) If this subsection applies in respect of a property, the property is deemed to be a prohibited investment at and after the relevant time for every trust governed by a RRIF or RRSP of the controlling individual referred to in paragraph (8)(a).

Marginal note:Breakdown of marriage or common-law partnership

(10) Subsection (11) applies in respect of a property if

(a) the property is transferred at any time (in this subsection and subsection (11) referred to as the “transfer time”) by a trust (in this subsection and subsection (11) referred to as the “transferor trust”) governed by a RRIF or RRSP of a controlling individual (in this subsection and subsection (11) referred to as the “transferor”) under paragraph 146(16)(b) or subsection 146.3(14) to a trust (in subsection (11) referred to as the “recipient trust”) governed by a RRIF or RRSP of which the spouse or common-law partner or former spouse or common-law partner (in this subsection and subsection (11) referred to as the “recipient”) of the transferor is the controlling individual;

(b) the property is a prohibited investment, and a transitional prohibited property, for the transferor trust immediately before the transfer time;

(c) the transferor elected under subsection 207.05(4); and

(d) the transferor and the recipient jointly elect in prescribed form that subsection (11) apply in respect of the property and the election

(i) is filed with the Minister on or before the day that is 90 days after the end of the taxation year of the transferor that includes the transfer time; and

(ii) designates an amount (in subsection (11) referred to as the “designated amount”) in respect of the property that

(A) is not less than the adjusted cost base to the transferor trust of the property immediately before the transfer time, and

(B) does not exceed the greater of the amount determined under clause (A) and the fair market value of the property at the transfer time.

Marginal note:Breakdown of marriage or common-law partnership

(11) If this subsection applies in respect of a property,

(a) the property is deemed to be, at and after the transfer time, a property that was held on March 22, 2011 by a trust governed by a RRIF or RRSP of the recipient and that was a prohibited investment for the trust on March 23, 2011;

(b) where the property would, in the absence of this paragraph, not be a prohibited investment for the recipient trust immediately after the transfer time, the property is deemed to be a prohibited investment at and after the transfer time for every trust governed by a RRIF or RRSP of the recipient;

(c) the recipient is deemed to have elected under subsection 207.05(4); and

(d) notwithstanding any other provision of this Act, the designated amount is deemed to be

(i) the proceeds of disposition to the transferor trust from the transfer described in paragraph (10)(a), and

(ii) the cost of the property to a trust governed by a RRIF or RRSP of the recipient until the property is disposed of by the trust.

Marginal note:Exchange of property

(12) Subsection (13) applies in respect of a property other than money if

(a) the property is acquired at any time (in this subsection and subsection (13) referred to as the “exchange time”) by a trust (in this section and subsection (13) referred to as the “exchanging trust”) governed by a RRIF or RRSP of a controlling individual in exchange for another property (in this subsection referred to as the “exchanged property”) in a transaction to which any of section 51, subsection 85(1) and sections 85.1, 86 and 87 apply;

(b) the exchanged property is a prohibited investment, and a transitional prohibited property, for the exchanging trust immediately before the exchange time;

(c) the property is, or would be, if subsection 4900(14) of the Income Tax Regulations were read without reference to its paragraph (b), a qualified investment for the exchanging trust immediately after the exchange time; and

(d) the controlling individual elected under subsection 207.05(4).

Marginal note:Exchange of property

(13) If this subsection applies in respect of a property,

(a) other than for the purposes of subsection (7), the property is deemed to be, at and after the exchange time, a property that was held on March 22, 2011 by a trust governed by a RRIF or RRSP of the controlling individual referred to in subsection (12) and that was a prohibited investment for the trust on March 23, 2011; and

(b) where the property would, in the absence of this paragraph, not be a prohibited investment for the exchanging trust immediately after the exchange time, the property is deemed to be a prohibited investment at and after the exchange time for every trust governed by a RRIF or RRSP of the controlling individual.

(17) Subsections (1) to (6), (9), (10), (13), (14) and (16) are deemed to have come into force on March 23, 2011, except that an election referred to in paragraph 207.01(8)(d) or (10)(d) of the Act, as enacted by subsection (16), is deemed to have been filed with the Minister of National Revenue on a timely basis if it is filed with the Minister on or before the day that is 90 days after the day on which this Act receives royal assent.

(18) Subsections (7) and (8) apply after March 22, 2011 in respect of investments acquired at any time.

(19) Subsections (11) and (12) are deemed to have come into force on July 1, 2011, except that they do not apply in relation to a swap transaction undertaken before 2022 to remove a property from a RRIF or RRSP if it is reasonable to conclude that tax would be payable under Part XI.01 of the Act if

(a) that Part were read without reference to subsection 207.05(4) of the Act; and

(b) the property were retained in the RRIF or RRSP.

(20) Subsection (15) is deemed to have come into force on January 1, 2009.

75. (1) Subsection 207.04(1) of the Act is replaced by the following:

Marginal note:Tax payable on prohibited or non-qualified investment

207.04 (1) The controlling individual of a registered plan that governs a trust shall pay a tax under this Part for a calendar year if, at any time in the year, the trust acquires property that is a prohibited investment, or a non-qualified investment, for the trust.

(2) Subsection 207.04(3) of the Act is replaced by the following:

Marginal note:Both prohibited and non-qualified investment

(3) For the purposes of this section and subsections 146(10.1), 146.2(6), 146.3(9) and 207.01(6), if a trust governed by a registered plan holds property at any time that is, for the trust, both a prohibited investment and a non-qualified investment, the property is deemed at that time not to be a non-qualified investment, but remains a prohibited investment, for the trust.

(3) Subsection 207.04(5) of the Act is repealed.

(4) Subsections (1) to (3) are deemed to have come into force on March 23, 2011.

76. (1) The portion of subsection 207.05(4) of the Act before paragraph (b) is replaced by the following:

Marginal note:Transitional rule

(4) If an individual so elects before March 2, 2013 in prescribed form, subsection (1) does not apply in respect of any advantage that is an amount included in the calculation of the transitional prohibited investment benefit of the individual for a taxation year provided that the transitional prohibited investment benefit

(a) is paid to the individual, from a RRIF or RRSP of the individual, on or before the later of April 2, 2013 and the day that is 90 days after the end of the taxation year; and

(2) Subsection (1) is deemed to have come into force on March 23, 2011.

77. (1) Subsection 207.06(2) of the Act is amended by striking out “and” at the end of paragraph (a), by adding “and” at the end of paragraph (b) and by adding the following after paragraph (b):

(c) the extent to which payments have been made from the person’s registered plan.

(2) Subsection 207.06(3) of the Act is repealed.

(3) Subsections (1) and (2) are deemed to have come into force on March 23, 2011.

78. (1) Section 207.061 of the Act is replaced by the following:

Marginal note:Income inclusion

207.061 A holder of a TFSA shall include in computing the holder’s income for a taxation year under Part I any portion of a distribution made in the year that is described in subparagraph (a)(ii) of the definition “specified distribution” in subsection 207.01(1) or subparagraph 207.06(1)(b)(ii) or that is specified by the Minister as part of an agreement to waive or cancel a liability for tax under this Part.

(2) Subsection (1) is deemed to have come into force on March 23, 2011.

79. The portion of subsection 207.07(1) of the Act before paragraph (a) is replaced by the following:

Marginal note:Return and payment of tax

207.07 (1) A person who is liable to pay tax under this Part for all or any part of a calendar year shall before July of the following calendar year

80. (1) The definition “labour-sponsored funds tax credit” in subsection 211.7(1) of the Act is amended by striking out “and” at the end of paragraph (a) and by replacing paragraph (b) with the following:

(b) if the original acquisition of the share occurred after 1995 and before March 2, 2017, the amount that would be determined under subsection 127.4(6)  —  as that subsection would apply in respect of a claim made by the taxpayer under subsection 127.4(2) in respect of the original acquisition if subsection 127.4(6) were read without reference to paragraphs 127.4(6)(b) and (d)  —  in respect of the share; and

(c) in any other case, nil.

(2) Subsection (1) is deemed to have come into force on March 21, 2013.

81. (1) Section 211.81 of the Act is replaced by the following:

Marginal note:Tax for failure to reacquire certain shares

211.81 If a particular amount is payable under a prescribed provision of a provincial law for a taxation year of an individual as determined for the purposes of that provincial law (referred to in this section as the “relevant provincial year”), and an amount has been included in the computation of the labour-sponsored funds tax credit of the individual under subsection 127.4(6) in respect of an approved share that has been disposed of by a qualifying trust in respect of the individual, the individual shall pay a tax for the taxation year in which the relevant provincial year ends equal to the amount deducted by the individual under subsection 127.4(2) in respect of the share.

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

82. (1) Subparagraph 212.1(3)(b)(iv) of the English version of the Act is replaced by the following:

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

(2) Paragraph 212.1(3)(e) of the Act is replaced by the following:

(e) a “designated partnership” means a partnership of which either a majority-interest partner or every member of a majority-interest group of partners (as defined in subsection 251.1(3)) is a non-resident person; and

83. (1) Paragraph 214(3)(f) of the Act is replaced by the following:

(f) where subsection 104(13) would, if Part I were applicable, require any part of an amount payable by a trust in its taxation year to a beneficiary to be included in computing the income of the non-resident person who is a beneficiary of the trust, that part is deemed to be an amount paid or credited to that person as income of or from the trust

(i) on, or at, the earliest of

(A) the day on which the amount was paid or credited,

(B) the day that is 90 days after the end of the taxation year, and

(C) if the taxation year is deemed by subparagraph 128.1(4)(a)(i) to end after July 25, 2012, the time that is immediately before the end of the taxation year, and

(ii) not at any later time;

(2) Subsection (1) is deemed to have come into force on July 25, 2012.

84. (1) Subparagraph 219(1)(d)(ii) of the Act is replaced by the following:

(ii) an amount deductible because of paragraphs 111(1)(b) and 115(1)(d) in computing the corporation’s base amount,

(2) Subsection 219(1.1) of the Act is replaced by the following:

Marginal note:Excluded gains

(1.1) For the purposes of subsection (1), the definition “taxable Canadian property” in subsection 248(1) shall be read without reference to paragraphs (a) and (c) to (e) of that definition and as if the only options, interests or rights referred to in paragraph (f) of that definition were those in respect of property described in paragraph (b) of that definition.

(3) Subsection (1) applies to the 1998 and subsequent taxation years.

(4) Subsection (2) is deemed to have come into force on March 5, 2010.

85. (1) Paragraph 239(2.21)(b) of the Act is replaced by the following:

(b) who is an official to whom taxpayer information has been provided for a particular purpose under paragraph 241(4)(a), (d), (f), (f.1), (i), (j.1) or (j.2)

(2) Subsection 239(3) of the Act is replaced by the following:

Marginal note:Penalty on conviction

(3) If a person is convicted under this section, the person is not liable to pay a penalty imposed under any of sections 162, 163, 163.2 and 163.3 for the same contravention unless the penalty is assessed before the information or complaint giving rise to the conviction was laid or made.

(3) Subsection (2) comes into force on the later of the day on which this Act receives royal assent and January 1, 2014.

86. (1) The Act is amended by adding the following after section 239:

Marginal note:Definitions

239.1 (1) The definitions in subsection 163.3(1) apply in this section.

Marginal note:Offences

(2) Every person that, without lawful excuse, the proof of which lies on the person,

(a) uses an electronic suppression of sales device or a similar device or software in relation to records that are required to be kept by any person under section 230,

(b) acquires or possesses an electronic suppression of sales device, or a right in respect of an electronic suppression of sales device, that is, or is intended to be, capable of being used in relation to records that are required to be kept by any person under section 230,

(c) designs, develops, manufactures, possesses for sale, offers for sale, sells, transfers or otherwise makes available to another person an electronic suppression of sales device that is, or is intended to be, capable of being used in relation to records that are required to be kept by any person under section 230,

(d) supplies installation, upgrade or maintenance services for an electronic suppression of sales device that is, or is intended to be, capable of being used in relation to records that are required to be kept by any person under section 230, or

(e) participates in, assents to or acquiesces in the commission of, or conspires with any person to commit, an offence described in any of paragraphs (a) to (d),

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 $10,000 and not more than $500,000 or to imprisonment for a term not exceeding two years, or to both.

Marginal note:Prosecution on indictment

(3) Every person that is charged with an offence described in subsection (2) may, at the election of the Attorney General of Canada, be prosecuted on indictment and, if convicted, is, in addition to any penalty otherwise provided, liable to a fine of not less than $50,000 and not more than $1,000,000 or to imprisonment for a term not exceeding five years, or to both.

Marginal note:Penalty on conviction

(4) A person that is convicted of an offence under this section is not liable to pay a penalty imposed under any of sections 162, 163, 163.2 and 163.3 for the same action 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

(5) 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 of Canada and, upon that filing, the proceedings before that Court are stayed pending final determination of the outcome of the prosecution.

(2) Subsection (1) comes into force on the later of the day on which this Act receives royal assent and January 1, 2014.

87. (1) Subparagraphs 241(4)(d)(ix) and (x) of the Act are replaced by the following:

(ix) to an official of a department or agency of the Government of Canada or of a province as to the name, address, telephone number, occupation, size or type of business of a taxpayer, solely for the purpose of enabling that department or agency to obtain statistical data for research and analysis,

(x) to an official of the Canada Employment Insurance Commission or the Department of Employment and Social Development, solely for the purpose of the administration or enforcement of the Employment Insurance Act, an employment program of the Government of Canada (including, for greater certainty, any activity relating to a program for temporary foreign workers for which the administration or enforcement is the responsibility of the Minister of Employment and Social Development under the Immigration and Refugee Protection Regulations) or the evaluation or formation of policy for that Act or program,

(2) Paragraph 241(4)(j.1) of the Act is replaced by the following:

(j.1) provide taxpayer information to an official or a designated person solely for the purpose of permitting the making of an adjustment to a social assistance payment made on the basis of a means, needs or income test if the purpose of the adjustment is to take into account the amount determined for C in subsection 122.61(1) in respect of a person for a taxation year;

(j.2) provide information obtained under section 122.62 to an official of the government of a province solely for the purposes of the administration or enforcement of a prescribed law of the province;

88. (1) Section 247 of the Act is amended by adding the following after subsection (7):

Marginal note:Exclusion  — certain guarantees

(7.1) Subsection (2) does not apply to adjust an amount of consideration paid, payable or accruing to a corporation resident in Canada (in this subsection referred to as the “parent”) in a taxation year of the parent for the provision of a guarantee to a person or partnership (in this subsection referred to as the “lender”) for the repayment, in whole or in part, of a particular amount owing to the lender by a non-resident person, if

(a) the non-resident person is a controlled foreign affiliate of the parent for the purposes of section 17 throughout the period in the year during which the particular amount is owing; and

(b) it is established that the particular amount would be an amount owing described in paragraph 17(8)(a) or (b) if it were owed to the parent.

(2) Subsection (1) applies to taxation years that begin after 1997 and in applying subsection 247(7.1) of the Act, as enacted by subsection (1), to taxation years that begin before February 24, 1998, section 17 of the Act is to be read as it read on January 24, 2005, except that if a taxpayer elects under this subsection in writing and files the election with the Minister of National Revenue on or before the taxpayer’s filing-due date for the taxation year that includes the day on which this Act receives royal assent,

(a) notwithstanding the time limitations in subsection 152(4) of the Act, the Minister of National Revenue may make such assessments, reassessments and determinations under Part I of the Act as are necessary to give effect to this subsection for a taxation year that ends before that day; and

(b) if the taxpayer so indicates in the election, subsection (1) does not apply to taxation years of the taxpayer that begin before December 22, 2012.

89. (1) The definition “trust” in subsection 248(1) of the Act is replaced by the following:

“trust”

« fiducie »

“trust” has the meaning assigned by subsection 104(1) and, unless the context otherwise requires, includes an estate;

(2) The definition “estate” in subsection 248(1) of the English version of the Act is replaced by the following:

“estate”

« succession »

“estate” has the meaning assigned by subsection 104(1) and includes, for civil law, a succession;

(3) Clause (e)(iii)(B) of the definition “automobile” in subsection 248(1) of the Act is replaced by the following:

(B) at least 30 kilometres outside the nearest point on the boundary of the nearest population centre, as defined by the last census dictionary published by Statistics Canada before the year, that has a population of at least 40,000 individuals as determined in the last census published by Statistics Canada before the year;

(4) The portion of the definition “majority interest partner” in subsection 248(1) of the Act before paragraph (a) is replaced by the following:

“majority-interest partner”

« associé détenant une participation majoritaire »

“majority-interest partner”, of a particular partnership at any time, means a person or partnership (in this definition referred to as the “taxpayer”)

(5) Subsection 248(1) of the Act is amended by adding the following in alphabetical order:

“derivative forward agreement”

« contrat dérivé à terme »

“derivative forward agreement”, of a taxpayer, means an agreement entered into by the taxpayer to purchase or sell a capital property if

(a) the term of the agreement exceeds 180 days or the agreement is part of a series of agreements with a term that exceeds 180 days,

(b) in the case of a purchase agreement, the difference between the fair market value of the property delivered on settlement, including partial settlement, of the agreement and the amount paid for the property is attributable, in whole or in part, to an underlying interest (including a value, price, rate, variable, index, event, probability or thing) other than

(i) revenue, income or cashflow in respect of the property over the term of the agreement, changes in the fair market value of the property over the term of the agreement, or any similar criteria in respect of the property, or

(ii) if the purchase price is denominated in the currency of a country other than Canada, changes in the value of the Canadian currency relative to that other currency, and

(c) in the case of a sale agreement,

(i) the difference between the sale price of the property and the fair market value of the property at the time the agreement is entered into by the taxpayer is attributable, in whole or in part, to an underlying interest (including a value, price, rate, variable, index, event, probability or thing) other than

(A) revenue, income or cashflow in respect of the property over the term of the agreement, changes in the fair market value of the property over the term of the agreement, or any similar criteria in respect of the property, or

(B) if the sale price is denominated in the currency of a country other than Canada, changes in the value of the Canadian currency relative to that other currency, and

(ii) the agreement is part of an arrangement that has the effect  —  or would have the effect if the agreements that are part of the arrangement and that were entered into by persons or partnerships not dealing at arm’s length with the taxpayer were entered into by the taxpayer instead of non-arm’s length persons or partnerships —  of eliminating a majority of the taxpayer’s risk of loss and opportunity for gain or profit in respect of the property for a period of more than 180 days;

“LIA policy”

« police RAL »

“LIA policy” means a life insurance policy (other than an annuity) where

(a) a particular person or partnership becomes obligated after March 20, 2013 to repay an amount to another person or partnership (in this definition referred to as the “lender”) at a time determined by reference to the death of a particular individual whose life is insured under the policy, and

(b) the lender is assigned an interest in

(i) the policy, and

(ii) an annuity contract the terms of which provide that payments are to continue for a period that ends no earlier than the death of the particular individual;

“synthetic disposition arrangement”

« arrangement de disposition factice »

“synthetic disposition arrangement”, in respect of a property owned by a taxpayer, means one or more agreements or other arrangements that

(a) are entered into by the taxpayer or by a person or partnership that does not deal at arm’s length with the taxpayer,

(b) have the effect, or would have the effect if entered into by the taxpayer instead of the person or partnership, of eliminating all or substantially all the taxpayer’s risk of loss and opportunity for gain or profit in respect of the property for a definite or indefinite period of time, and

(c) can, in respect of any agreement or arrangement entered into by a person or partnership that does not deal at arm’s length with the taxpayer, reasonably be considered to have been entered into, in whole or in part, with the purpose of obtaining the effect described in paragraph (b);

“synthetic disposition period”

« période de disposition factice »

“synthetic disposition period”, of a synthetic disposition arrangement, means the definite or indefinite period of time during which the synthetic disposition arrangement has, or would have, the effect described in paragraph (b) of the definition “synthetic disposition arrangement” in this subsection;

“10/8 policy”

« police 10/8 »

“10/8 policy” means a life insurance policy (other than an annuity) where

(a) an amount is or may become

(i) payable, under the terms of a borrowing, to a person or partnership that has been assigned an interest in the policy or in an investment account in respect of the policy, or

(ii) payable (within the meaning assigned by the definition “amount payable” in subsection 138(12)) under a policy loan (as defined in subsection 148(9)) made in accordance with the terms and conditions of the policy, and

(b) either

(i) the return credited to an investment account in respect of the policy

(A) is determined by reference to the rate of interest on the borrowing or policy loan, as the case may be, described in paragraph (a), and

(B) would not be credited to the account if the borrowing or policy loan, as the case may be, were not in existence, or

(ii) the maximum amount of an investment account in respect of the policy is determined by reference to the amount of the borrowing or policy loan, as the case may be, described in paragraph (a);

(6) Subsection (3) applies to the 2013 and subsequent taxation years.

(7) Subsection (5) is deemed to have come into force on March 21, 2013, except that the definitions “LIA policy” and “10/8 policy” in subsection 248(1) of the Act, as amended by subsection (5), apply to taxation years that end after March 20, 2013.

90. (1) Subsection 249(4) of the Act is replaced by the following:

Marginal note:Loss restriction event  —  year end

(4) If at any time a taxpayer is subject to a loss restriction event (other than a foreign affiliate, of a taxpayer resident in Canada, that did not carry on a business in Canada at any time in its last taxation year that began before that time), then for the purposes of this Act,

(a) subject to paragraph (b), the taxpayer’s taxation year that would, but for this paragraph, have included that time is deemed to end immediately before that time, a new taxation year of the taxpayer is deemed to begin at that time and, for the purpose of determining the taxpayer’s fiscal period after that time, the taxpayer is deemed not to have established a fiscal period before that time; and

(b) subject to paragraph 128(1)(d), section 128.1 and paragraphs 142.6(1)(a) and 149(10)(a), and notwithstanding subsections (1) and (3), if the taxpayer’s taxation year that would, but for this subsection, have been its last taxation year that ended before that time, would, but for this paragraph, have ended within the seven-day period that ended immediately before that time, that taxation year is, except if the taxpayer is subject to a loss restriction event within that period, deemed to end immediately before that time, provided that the taxpayer so elects in its return of income under Part I for that taxation year.

(2) Subsection (1) is deemed to have come into force on March 21, 2013.

91. (1) Paragraph 251.1(1)(e) of the English version of the Act is replaced by the following:

(e) a partnership and a majority-interest partner of the partnership;

(2) Paragraph (a) of the definition “majority-interest group of partners” in subsection 251.1(3) of the English version of the Act is replaced by the following:

(a) if one person held the interests of all members of the group, that person would be a majority-interest partner of the partnership; and

(3) Subparagraph 251.1(4)(d)(iv) of the English version of the Act is replaced by the following:

(iv) in determining whether a contributor to one trust is affiliated with a contributor to another trust, individuals connected by blood relationship, marriage, common-law partnership or adoption are deemed to be affiliated with one another.

92. (1) The Act is amended by adding the following after section 251.1:

Marginal note:Definitions

251.2 (1) The following definitions apply in this section.

“beneficiary”

« bénéficiaire »

“beneficiary” has the same meaning as in subsection 251.1(3).

“equity”

« capitaux propres »

“equity” has the same meaning as in subsection 122.1(1) read without reference to paragraph (e) of the definition “equity” in that subsection.

“equity value”

« valeur des capitaux propres »

“equity value” has the same meaning as in subsection 122.1(1).

“majority-interest beneficiary”

« bénéficiaires détenant une participation majoritaire »

“majority-interest beneficiary” has the same meaning as in subsection 251.1(3).

“majority-interest group of beneficiaries”

« groupe de bénéficiaires détenant une participation majoritaire »

“majority-interest group of beneficiaries” has the same meaning as in subsection 251.1(3).

“majority-interest group of partners”

« groupe d’associés détenant une participation majoritaire »

“majority-interest group of partners” has the same meaning as in subsection 251.1(3).

“person”

« personne »

“person” includes a partnership.

“specified right”

« droit déterminé »

“specified right”, held at any time by a person in respect of a trust, means a right under a contract, in equity or otherwise, to acquire, either immediately or in the future and either absolutely or contingently, equity of the trust, or to cause the trust to redeem or cancel equity of the trust, unless the right is not exercisable at that time because its exercise is contingent on the death, bankruptcy or permanent disability of an individual.

“subsidiary”

« filiale »

“subsidiary”, of a particular person at any time, means a corporation, partnership or trust (in this definition referred to as the “subject entity”) where

(a) the particular person holds at that time property

(i) that is equity of the subject entity, or

(ii) that derives all or part of its fair market value, directly or indirectly, from equity of the subject entity; and

(b) the total of the following amounts is at that time equal to more than 50% of the equity value of the subject entity:

(i) each amount that is the fair market value at that time of equity of the subject entity that is held at that time by the particular person or a person with whom the particular person is affiliated, and

(ii) each amount (other than an amount described in subparagraph (i)) that is the portion of the fair market value at that time  —  derived directly or indirectly from equity of the subject entity  —  of a property that is held at that time by the particular person or a person with whom the particular person is affiliated.

Marginal note:Loss restriction event

(2) For the purposes of this Act, a taxpayer is at any time subject to a loss restriction event if

(a) the taxpayer is a corporation and at that time control of the corporation is acquired by a person or group of persons; or

(b) the taxpayer is a trust and

(i) that time is after March 20, 2013 and after the time at which the trust is created, and

(ii) at that time a person becomes a majority-interest beneficiary, or a group of persons becomes a majority-interest group of beneficiaries, of the trust.

Marginal note:Trusts  — exceptions

(3) For the purposes of paragraph (2)(b), a person is deemed not to become a majority-interest beneficiary, and a group of persons is deemed not to become a majority-interest group of beneficiaries, as the case may be, of a particular trust solely because of

(a) the acquisition of equity of the particular trust by

(i) a particular person from another person with whom the particular person was affiliated immediately before the acquisition,

(ii) a particular person who was affiliated with the particular trust immediately before the acquisition,

(iii) an estate from an individual, if the estate arose on and as a consequence of the death of the individual and the estate acquired the equity from the individual as a consequence of the death, or

(iv) a particular person from an estate that arose on and as a consequence of the death of an individual, if the estate acquired the equity from the individual as a consequence of the death and the individual was affiliated with the particular person immediately before the death;

(b) a variation in the terms of the particular trust, the satisfaction of, or failure to satisfy, a condition under the terms of the particular trust, the exercise by any person of, or the failure by any person to exercise, a power, or (without limiting the generality of the foregoing) the redemption, surrender or termination of equity of the particular trust at any time, if each majority-interest beneficiary, and each member of a majority-interest group of beneficiaries, of the particular trust immediately after that time was affiliated with the particular trust immediately before

(i) that time, or

(ii) in the case of the redemption or surrender of equity of the particular trust that was held, immediately before that time, by an estate and that was acquired by the estate from an individual as described in subparagraph (a)(iii), the individual’s death;

(c) the transfer at any time of all the equity of the particular trust to a corporation, partnership or another trust (in this paragraph referred to as the “acquirer”), if

(i) the only consideration for the transfer is equity (determined without reference to paragraph (d) of the definition “equity” in subsection 122.1(1)) of the acquirer,

(ii) at all times before that time the acquirer held no property or held only property having a nominal value, and

(iii) immediately after that time the acquirer is neither

(A) a subsidiary of any person, nor

(B) a corporation controlled, directly or indirectly in any manner whatever, by a person or group of persons;

(d) the transfer at any time of equity of the particular trust to a corporation, partnership or another trust (in this paragraph referred to as the “acquirer”), if

(i) immediately before that time a person was a majority-interest beneficiary, or a group of persons was a majority-interest group of beneficiaries, of the particular trust,

(ii) immediately after that time the person, or group of persons, as the case may be, described in subparagraph (i) in respect of the particular trust, and no other person or group of persons, is

(A) if the acquirer is a corporation, a person by whom, or a group of persons by which, the corporation is controlled directly or indirectly in any manner whatever,

(B) if the acquirer is a partnership, a majority-interest partner, or a majority-interest group of partners, of the partnership, and

(C) if the acquirer is a trust, a majority-interest beneficiary, or a majority-interest group of beneficiaries, of the trust, and

(iii) at no time during a series of transactions or events that includes the transfer does the person or group of persons, as the case may be, described in subparagraph (i) in respect of the particular trust, cease to be a person or group of persons described in any of clauses (ii)(A) to (C) in respect of the acquirer; or

(e) a transaction (other than a transaction one or more of the parties to which may be excused from completing as a result of changes to this Act) the parties to which are obligated to complete under the terms of an agreement in writing between the parties entered into before March 21, 2013.

Marginal note:Trusts  — additional cases

(4) For the purposes of paragraph (2)(b) and subject to subsection (3), a person is deemed to become at a particular time a majority-interest beneficiary of a particular trust if

(a) a particular person is at and immediately before the particular time a majority-interest beneficiary, or a member of a majority-interest group of beneficiaries, of the particular trust, and the particular person is at the particular time, but is not immediately before the particular time, a subsidiary of another person (in this paragraph referred to as the “acquirer”), unless

(i) the acquirer is immediately before the particular time affiliated with the particular trust, or

(ii) this paragraph previously applied to deem a person to become a majority-interest beneficiary of the particular trust because the particular person became, as part of a series of transactions or events that includes the particular person becoming at the particular time a subsidiary of the acquirer, a subsidiary of another person that is at the particular time a subsidiary of the acquirer; or

(b) at the particular time, as part of a series of transactions or events, two or more persons acquire equity of the particular trust in exchange for or upon a redemption or surrender of equity of, or as a consequence of a distribution from, a corporation, partnership or another trust, unless

(i) a person affiliated with the corporation, partnership or other trust was immediately before the particular time a majority-interest beneficiary of the particular trust,

(ii) if all the equity of the particular trust that was acquired at or before the particular time as part of the series were acquired by one person, the person would not at the particular time be a majority-interest beneficiary of the particular trust, or

(iii) this paragraph previously applied to deem a person to become a majority-interest beneficiary of the particular trust because of an acquisition of equity of the particular trust that was part of the series.

Marginal note:Trusts  —  special rules of application

(5) For the purposes of this section,

(a) in determining whether persons are affiliated with each other

(i) except for the purposes of paragraph (b) of the definition “subsidiary” in subsection (1), section 251.1 is to be read without reference to the definition “controlled” in subsection 251.1(3),

(ii) in determining whether an individual (other than a trust) is affiliated with another individual (other than a trust), individuals connected by blood relationship, marriage or common-law partnership or adoption are deemed to be affiliated with one another, and

(iii) if, at any time as part of a series of transactions or events a person acquires equity of a corporation, partnership or trust, and it can reasonably be concluded that one of the reasons for the acquisition, or for making any agreement or undertaking in respect of the acquisition, is to cause a condition in paragraph (3)(a) or (b) or subparagraph (4)(a)(i) or (b)(i) regarding affiliation to be satisfied at a particular time, the condition is deemed not to be satisfied at the particular time; and

(b) in determining whether a particular person becomes at any time a majority-interest beneficiary, or a particular group of persons becomes at any time a majority-interest group of beneficiaries, of a trust, the fair market value of each person’s equity of the trust is to be determined at and immediately before that time

(i) without reference to the portion of that fair market value that is attributable to property acquired if it can reasonably be concluded that one of the reasons for the acquisition is to cause paragraph (2)(b), or any provision that applies by reference to a trust being subject to a loss restriction event at any time, not to apply,

(ii) without reference to the portion of that fair market value that is attributable to a change in the fair market value of all or part of any equity of the trust if it can reasonably be concluded that one of the reasons for the change is to cause paragraph (2)(b), or any provision that applies by reference to a trust being subject to a loss restriction event at any time, not to apply, and

(iii) as if each specified right held immediately before that time by the particular person, or by a member of the particular group, in respect of the trust is at that time exercised if it can reasonably be concluded that one of the reasons for the acquisition of the right is to cause paragraph (2)(b), or any provision that applies by reference to a trust being subject to a loss restriction event at any time, not to apply.

Marginal note:Trusts  —  time of day

(6) For the purposes of this Act, if a trust is subject to a loss restriction event at a particular time during a day, the trust is deemed to be subject to the loss restriction event at the beginning of that day and not at the particular time unless the trust elects in its return of income under Part I filed for its taxation year that ends immediately before the loss restriction event to have this subsection not apply.

(2) Subsection (1) is deemed to have come into force on March 21, 2013.

93. (1) The portion of subsection 256(7) of the Act before paragraph (a) is replaced by the following:

Marginal note:Acquiring control

(7) For the purposes of this subsection, of section 55, subsections 66(11), 66.5(3), 66.7(10) and (11), 85(1.2), 88(1.1) and (1.2), 110.1(1.2) and 111(5.4) and paragraph 251.2(2)(a) and of subsection 5905(5.2) of the Income Tax Regulations,

(2) Clause 256(7)(a)(i)(D) of the Act is replaced by the following:

(D) a particular person who acquired the shares from an estate that arose on and as a consequence of the death of an individual, if the estate acquired the shares from the individual as a consequence of the death and the individual was related to the particular person immediately before the death,

(3) Subsection 256(7) of the Act is amended by striking out “and” at the end of paragraph (f) and by adding the following after paragraph (g):

(h) if at any time after September 12, 2013 a trust is subject to a loss restriction event and immediately before that time the trust, or a group of persons a member of which is the trust, controls a corporation, control of the corporation and of each corporation controlled by it immediately before that time is deemed to have been acquired at that time by a person or group of persons; and

(i) if at any time after September 12, 2013 a trust controls a corporation, control of the corporation is deemed not to be acquired solely because of a change in the trustee or legal representative having ownership or control of the trust’s property if

(i) the change is not part of a series of transactions or events that includes a change in the beneficial ownership of the trust’s property, and

(ii) no amount of income or capital of the trust to be distributed, at any time at or after the change, in respect of any interest in the trust depends upon the exercise by any person or partnership, or the failure of any person or partnership, to exercise any discretionary power.

(4) The portion of subsection 256(8) of the French version of the Act before paragraph (a) is replaced by the following:

Marginal note:Présomption d’exercice de droit

(8) Pour ce qui est de déterminer, d’une part, si le contrôle d’une société a été acquis pour l’application des paragraphes 10(10) et 13(24), de l’article 37, des paragraphes 55(2), 66(11), (11.4) et (11.5), 66.5(3) et 66.7(10) et (11), de l’article 80, de l’alinéa 80.04(4)h), du sous-alinéa 88(1)c)(vi), de l’alinéa 88(1)c.3), des paragraphes 88(1.1) et (1.2), des articles 111 et 127, des paragraphes 181.1(7), 190.1(6) et 249(4) et de l’alinéa 251.2(2)a) et, d’autre part, si une société est contrôlée par une personne ou par un groupe de personnes pour l’application de l’article 251.1 et des alinéas 251.2(3)c) et d), le contribuable qui a acquis un droit visé à l’alinéa 251(5)b) afférent à une action est réputé être dans la même position relativement au contrôle de la société que si le droit était immédiat et absolu et que s’il l’avait exercé au moment de l’acquisition, dans le cas où il est raisonnable de conclure que l’un des principaux motifs de l’acquisition du droit consistait :

(5) Paragraph 256(8)(b) of the Act is replaced by the following:

(b) to avoid the application of subsection 10(10) or 13(24), paragraph 37(1)(h) or subsection 55(2) or 66(11.4) or (11.5), paragraph 88(1)(c.3) or subsection 111(4), (5.1), (5.2) or (5.3), 181.1(7), 190.1(6) or 251.2(2),

(6) The portion of subsection 256(8) of the English version of the Act after paragraph (e) is replaced by the following:

the taxpayer is deemed to be in the same position in relation to the control of the corporation as if the right were immediate and absolute and as if the taxpayer had exercised the right at that time for the purpose of determining whether control of a corporation has been acquired for the purposes of subsections 10(10) and 13(24), section 37, subsections 55(2), 66(11), (11.4) and (11.5), 66.5(3), 66.7(10) and (11), section 80, paragraph 80.04(4)(h), subparagraph 88(1)(c)(vi), paragraph 88(1)(c.3), subsections 88(1.1) and (1.2), sections 111 and 127, subsections 181.1(7), 190.1(6) and 249(4) and paragraph 251.2(2)(a) and in determining for the purposes of section 251.1 and paragraphs 251.2(3)(c) and (d) whether a corporation is controlled by any other person or group of persons.

(7) Subsections (1) and (3) to (6) are deemed to have come into force on March 21, 2013.

(8) Subsection (2) is deemed to have come into force on September 13, 2013.

94. (1) The Act is amended by adding the following after section 256:

Marginal note:Definitions

256.1 (1) The following definitions apply in this section.

“attribute trading restriction”

« restriction au commerce d’attributs »

“attribute trading restriction” means a restriction on the use of a tax attribute arising on the application, either alone or in combination with other provisions, of any of this section, subsections 10(10) and 13(24), section 37, subsections 66(11.4) and (11.5), 66.7(10) and (11), 69(11) and 88(1.1) and (1.2), sections 111 and 127 and subsections 181.1(7), 190.1(6), 249(4) and 256(7).

“person”

« personne »

“person” includes a partnership.

“specified provision”

« dispositions déterminées »

“specified provision” means any of subsections 10(10) and 13(24), paragraph 37(1)(h), subsections 66(11.4) and (11.5), 66.7(10) and (11), 69(11) and 111(4), (5), (5.1), (5.2) and (5.3), paragraphs (j) and (k) of the definition “investment tax credit” in subsection 127(9), subsections 181.1(7) and 190.1(6) and any provision of similar effect.

Marginal note:Application of subsection (3)

(2) Subsection (3) applies at a particular time in respect of a corporation if

(a) shares of the capital stock of the corporation held by a person, or the total of all shares of the capital stock of the corporation held by members of a group of persons, as the case may be, have at the particular time a fair market value that exceeds 75% of the fair market value of all the shares of the capital stock of the corporation;

(b) shares, if any, of the capital stock of the corporation held by the person, or the total of all shares, if any, of the capital stock of the corporation held by members of the group, have immediately before the particular time a fair market value that does not exceed 75% of the fair market value of all the shares of the capital stock of the corporation;

(c) the person or group does not control the corporation at the particular time; and

(d) it is reasonable to conclude that one of the main reasons that the person or group does not control the corporation is to avoid the application of one or more specified provisions.

Marginal note:Deemed acquisition of control

(3) If this subsection applies at a particular time in respect of a corporation, then for the purposes of the attribute trading restrictions,

(a) the person or group referred to in subsection (2)

(i) is deemed to acquire control of the corporation, and each corporation controlled by the corporation, at the particular time, and

(ii) is not deemed to have control of the corporation, and each corporation controlled by the corporation, at any time after the particular time solely because this paragraph applied at the particular time; and

(b) during the period that the condition in paragraph (2)(a) is satisfied, each corporation referred to in paragraph (a)  —  and any corporation incorporated or otherwise formed subsequent to that time and controlled by that corporation  —  is deemed not to be related to, or affiliated with, any person to which it was related to, or affiliated with, immediately before paragraph (a) applies.

Marginal note:Special rules

(4) For the purpose of applying paragraph (2)(a) in respect of a person or group of persons,

(a) if it is reasonable to conclude that one of the reasons that one or more transactions or events occur is to cause a person or group of persons not to hold shares having a fair market value that exceeds 75% of the fair market value of all the shares of the capital stock of a corporation, the paragraph is to be applied without reference to those transactions or events; and

(b) the person, or each member of the group, is deemed to have exercised each right that is held by the person or a member of the group and that is referred to in paragraph 251(5)(b) in respect of a share of the corporation referred to in paragraph (2)(a).

Marginal note:Deeming rules  —  if share value nil

(5) For the purposes of subsections (2) to (4), if the fair market value of the shares of the capital stock of a corporation is nil at any time, then for the purpose of determining the fair market value of those shares, the corporation is deemed, at that time, to have assets net of liabilities equal to $100,000 and to have $100,000 of income for the taxation year that includes that time.

Marginal note:Deemed acquisition of control

(6) If, at any time as part of a transaction or event or series of transactions or events, control of a particular corporation is acquired by a person or group of persons and it can reasonably be concluded that one of the main reasons for the acquisition of control is so that a specified provision does not apply to one or more corporations, the attribute trading restrictions are deemed to apply to each of those corporations as if control of each of those corporations were acquired at that time.

(2) Subsection (1) is deemed to have come into force on March 21, 2013, except that it does not apply to an event or transaction that occurs

(a) before March 21, 2013, or

(b) after March 20, 2013 pursuant to an obligation created by the terms of an agreement in writing entered into between parties before March 21, 2013, and for the purposes of this paragraph, parties will be considered not to be obligated if one or more of those parties may be excused from fulfilling the obligation as a result of changes to the Act.

2011, c. 24Keeping Canada’s Economy and Jobs Growing Act

95. (1) Paragraph 64(6)(a) of the Keeping Canada’s Economy and Jobs Growing Act is replaced by the following:

(a) after 2021 in relation to a swap transaction undertaken to remove a property from a RRIF or RRSP if it is reasonable to conclude that tax would be payable under Part XI.01 of the Act if

(i) that Part were read without reference to subsection 207.05(4) of the Act, and

(ii) the property were retained in the RRIF or RRSP; and

(2) Subsection (1) is deemed to have come into force on December 15, 2011.

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

96. (1) Section 201 of the Income Tax Regulations is amended by adding the following after subsection (5):

(5.1) Subsection (5) applies to an insurer in respect of an LIA policy in respect of a calendar year only if

(a) the insurer is notified in writing  —  before the end of the calendar year and by, or on behalf, of the policyholder  —  that the policy is an LIA policy; or

(b) it is reasonable to conclude that the insurer knew, or ought to have known, before the end of the calendar year, that the policy is an LIA policy.

(2) Subsection (1) applies to taxation years that end after March 20, 2013.

97. (1) The portion of subsection 306(1) of the Regulations before paragraph (a) is replaced by the following:

306. (1) For the purposes of this Part and subsection 12.2(11) of the Act, “exempt policy” at any time means a life insurance policy (other than an annuity contract, LIA policy or a deposit administration fund policy) in respect of which the following conditions are met at that time:

(2) Subsection (1) applies to taxation years that end after March 20, 2013.

98. (1) Paragraph 600(b) of the Regulations is replaced by the following:

(b) subsections 13(4), (7.4) and (29), 14(6), 20(24), 44(1) and (6), 45(2) and (3), 50(1), 53(2.1), 56.4(13), 70(6.2), (9.01), (9.11), (9.21) and (9.31), 72(2), 73(1), 80.1(1), 82(3), 83(2), 104(14), 107(2.001), 143(2), 146.01(7), 146.02(7), 164(6) and (6.1), 184(3), 251.2(6) and 256(9) of the Act;

(2) Subsection (1) is deemed to have come into force on March 21, 2013.

99. (1) The portion of section 806.2 of the Regulations before paragraph (a) is replaced by the following:

806.2 For the purposes of the definition “participating debt interest” in subsection 212(3) of the Act, an obligation is a prescribed obligation if it is an indexed debt obligation and no amount payable in respect of it is

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

100. (1) Paragraph 1100(1)(a) of the Regulations is amended by adding the following after subparagraph (xxvii.1):

(xxvii.2) of Class 41.2, 25 per cent,

(2) Subparagraph 1100(1)(w)(i) of the Regulations is replaced by the following:

(i) the taxpayer’s income for the taxation year from the mine, before making any deduction under this paragraph, paragraph (x), (y), (y.1), (y.2), (ya), (ya.1) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and

(3) Subparagraph 1100(1)(x)(i) of the Regulations is replaced by the following:

(i) the taxpayer’s income for the taxation year from the mines, before making any deduction under this paragraph, paragraph (ya), (ya.1) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and

(4) Subparagraph 1100(1)(y)(i) of the Regulations is replaced by the following:

(i) the taxpayer’s income for the taxation year from the mine, before making any deduction under this paragraph, paragraph (x), (ya), (ya.1) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and

(5) Subparagraph (i) of the description of A in paragraph 1100(1)(y.1) of the Regulations is replaced by the following:

(i) the taxpayer’s income for the taxation year from the mine, before making any deduction under this paragraph, paragraph (x), (y), (y.2), (ya), (ya.1) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and

(6) The description of B in paragraph 1100(1)(y.1) of the Regulations is amended by striking out “and” at the end of subparagraph (iv), by adding “and” at the end of subparagraph (v) and by adding the following after subparagraph (v):

(vi) 0%, if one or more days in the year are after 2014;

(7) Subsection 1100(1) of the Regulations is amended by adding the following after paragraph (y.1):

Additional Allowances  —  Class 41.2  —  Single Mine Properties

 

(y.2) such additional amount as the taxpayer may claim in respect of property acquired for the purpose of gaining or producing income from a mine and for which a separate class is prescribed by subsection 1101(4g), not exceeding the amount determined by the formula

A × B

where


is the lesser of

(i) the taxpayer’s income for the taxation year from the mine, before making any deduction under this paragraph, paragraph (x), (y), (ya), (ya.1) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and

(ii) the undepreciated capital cost to the taxpayer of property of that class as of the end of the year computed

(A) without reference to subsection (2),

(B) after making any deduction under paragraph (a) for the year, and

(C) before making any deduction under this paragraph, and


is the percentage that is the total of

(i) that proportion of 100% that the number of days in the year that are before 2017 is of the number of days in the year,

(ii) that proportion of 90% that the number of days in the year that are in 2017 is of the number of days in the year,

(iii) that proportion of 80% that the number of days in the year that are in 2018 is of the number of days in the year,

(iv) that proportion of 60% that the number of days in the year that are in 2019 is of the number of days in the year,

(v) that proportion of 30% that the number of days in the year that are in 2020 is of the number of days in the year, and

(vi) 0%, if one or more days in the year are after 2020;

(8) Subparagraph (i) of the description of A in paragraph 1100(1)(ya.1) of the Regulations is replaced by the following:

(i) the taxpayer’s income for the taxation year from the mines, before making any deduction under this paragraph, paragraph (ya) or (ya.2), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and

(9) The description of B in paragraph 1100(1)(ya.1) of the Regulations is amended by striking out “and” at the end of subparagraph (iv), by adding “and” at the end of subparagraph (v) and by adding the following after subparagraph (v):

(vi) 0%, if one or more days in the year are after 2014;

(10) Subsection 1100(1) of the Regulations is amended by adding the following after paragraph (ya.1):

Additional allowances Class 41.2  —  Multiple Mine Properties

 

(ya.2) such additional amount as the taxpayer may claim in respect of a property acquired for the purpose of gaining or producing income from more than one mine and for which a separate class is prescribed by subsection 1101(4h), not exceeding the amount determined by the formula

A × B

where


is the lesser of

(i) the taxpayer’s income for the taxation year from the mines, before making any deduction under this paragraph, paragraph (ya), section 65, 66, 66.1, 66.2 or 66.7 of the Act or section 29 of the Income Tax Application Rules, and

(ii) the undepreciated capital cost to the taxpayer of property of that class as of the end of the year computed

(A) without reference to subsection (2),

(B) after making any deduction under paragraph (a) for the year, and

(C) before making any deduction under this paragraph, and


is the percentage that is the total of

(i) that proportion of 100% that the number of days in the year that are before 2017 is of the number of days in the year,

(ii) that proportion of 90% that the number of days in the year that are in 2017 is of the number of days in the year,

(iii) that proportion of 80% that the number of days in the year that are in 2018 is of the number of days in the year,

(iv) that proportion of 60% that the number of days in the year that are in 2019 is of the number of days in the year,

(v) that proportion of 30% that the number of days in the year that are in 2020 is of the number of days in the year, and

(vi) 0%, if one or more days in the year are after 2020;

(11) Paragraph 1100(12)(b) of the Regulations is replaced by the following:

(b) a partnership each member of which was

(i) a corporation described in paragraph (a), or

(ii) another partnership described in this paragraph.

(12) Paragraph 1100(16)(b) of the Regulations is replaced by the following:

(b) a partnership each member of which was

(i) a corporation described in paragraph (a), or

(ii) another partnership described in this paragraph.

(13) Subparagraph 1100(25)(b)(iv) of the Regulations is replaced by the following:

(iv) a partnership each member of which was

(A) a corporation described in subparagraph (iii) or paragraph (26)(a), or

(B) another partnership described in this subparagraph.

(14) Paragraph 1100(26)(b) of the Regulations is replaced by the following:

(b) a partnership each member of which was

(i) a corporation described in paragraph (a), or

(ii) another partnership described in this paragraph.

(15) Subsections (1) to (10) apply to taxation years that end after March 20, 2013.

(16) Subsections (11) to (14) apply to fiscal periods that end after October 2010.

101. (1) Section 1101 of the Regulations is amended by adding the following after subsection (4f):

Class 41.2  —  Single Mine Properties

 (4g) If one or more properties of a taxpayer are described in paragraph (a) of Class 41.2 of Schedule II and some or all of the properties were acquired for the purpose of gaining or producing income from one mine and not from any other mine (in this subsection referred to as “single mine properties”), a separate class is prescribed for the single mine properties that

(a) were acquired for the purpose of gaining or producing income from that mine;

(b) would otherwise be included in Class 41.2 because of paragraph (a) of that class; and

(c) are not included in a separate class because of subsection (4h).

Class 41.2  —  Multiple Mine Properties

 (4h) If more than one property of a taxpayer is described in paragraph (a) of Class 41.2 in Schedule II and some or all of the properties were acquired for the purpose of gaining or producing income from particular mines and not from any other mine (in this subsection referred to as “multiple mine properties”), a separate class is prescribed for the multiple mine properties that

(a) were acquired for the purpose of gaining or producing income from the particular mines; and

(b) would otherwise be included in Class 41.2 because of paragraph (a) of that class.

(2) Subsection (1) applies to taxation years that end after March 20, 2013.

102. (1) Paragraph 1102(8)(d) of the Regulations is replaced by the following:

(d) Class 41, 41.1 or 41.2 in Schedule II in any other case, unless the property would otherwise be included in Class 43.1 or 43.2 in Schedule II and the taxpayer has, by a letter filed with the taxpayer’s return of income filed with the Minister in accordance with section 150 of the Act for the taxation year in which the property was acquired, elected to include the property in Class 43.1 or 43.2, as the case may be.

(2) Paragraph 1102(9)(d) of the Regulations is replaced by the following:

(d) Class 41, 41.1 or 41.2 in Schedule II in any other case, unless the property would otherwise be included in Class 43.1 or 43.2 in Schedule II and the taxpayer has, by a letter filed with the taxpayer’s return of income filed with the Minister in accordance with section 150 of the Act for the taxation year in which the property was acquired, elected to include the property in Class 43.1 or 43.2, as the case may be.

(3) Subsection 1102(10) of the Regulations and the heading before it are repealed.

(4) The portion of subsection 1102(14) of the Regulations that is before paragraph (a) is replaced by the following:

(14) Subject to subsections (14.11) and (14.12), for the purposes of this Part and Schedule II, if a property is acquired by a taxpayer

(5) Section 1102 of the Regulations is amended by adding the following after subsection (14.11):

(14.12) If, after March 20, 2013, a taxpayer acquires a property (other than an oil sands property) in circumstances to which subsection (14) applies and the property was depreciable property that was included in Class 41, because of paragraph (a) or (a.1) of that Class, by the person or partnership from whom the taxpayer acquired the property, the following rules apply:

(a) there may be included in Class 41 of the taxpayer only that portion of the property the capital cost of which portion to the taxpayer is the lesser of the undepreciated capital cost of Class 41 of that person or partnership immediately before the disposition of the property by the person or partnership and the amount, if any, by which that undepreciated capital cost is reduced as a result of that disposition; and

(b) there shall be included in Class 41.2 of the taxpayer that portion, if any, of the property that is not the portion included in Class 41 of the taxpayer under paragraph (a).

(6) Subsections (1), (2), (4) and (5) apply to property acquired after March 20, 2013.

(7) An election referred to in paragraph 1102(8)(d) or (9)(d) of the Regulations, as enacted by subsections (1) and (2), made by a taxpayer in respect of a property is deemed to have been filed in the manner described in those paragraphs for the taxation year in which the property was acquired if

(a) the election is filed with the Minister in writing on or before the day that is 180 days after the day on which this Act receives royal assent; and

(b) the property is

(i) an eligible mine development property as defined in subsection 1104(2) of the Regulations, as amended by subsection 103(1), or

(ii) described in Class 41.2 in Schedule II to the Regulations, as enacted by subsection 118(1).

(8) Subsection (3) applies in respect of expenditures incurred in taxation years that begin after December 21, 2012.

103. (1) Subsection 1104(2) of the Regulations is amended by adding the following in alphabetical order:

“eligible mine development property”

“eligible mine development property” means a property acquired by a taxpayer after March 20, 2013 and before 2018 for the purpose of gaining or producing income

(a) from a new mine or an expansion of a mine, if the property was acquired under a written agreement entered into by the taxpayer before March 21, 2013,

(b) from a new mine, if

(i) the construction of the new mine was started by, or on behalf of, the taxpayer before March 21, 2013 (and for this purpose construction does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit studies, and similar activities), or

(ii) the engineering and design work for the construction of the new mine, as evidenced in writing, was started by, or on behalf of, the taxpayer before March 21, 2013 (and for this purpose engineering and design work does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit studies, and similar activities), or

(c) from an expansion of a mine, if

(i) the construction for the expansion of the mine was started by, or on behalf of, the taxpayer before March 21, 2013 (and for this purpose construction does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit studies, and similar activities), or

(ii) the engineering and design work for the construction of the expansion of the mine, as evidenced in writing, was started by, or on behalf of, the taxpayer before March 21, 2013 (and for this purpose engineering and design work does not include obtaining permits or regulatory approvals, conducting environmental assessments, community consultations or impact benefit studies, and similar activities); (bien admissible à l’aménagement d’une mine)

(2) The portion of subsection 1104(5) of the Regulations before paragraph (a) is replaced by the following:

(5) For the purposes of paragraphs 1100(1)(w) to (ya.2), subsections 1101(4a) to (4h) and Classes 10, 28 and 41 to 41.2 of Schedule II, a taxpayer’s “income from a mine”, or any expression referring to a taxpayer’s income from a mine, includes income reasonably attributable to

(3) The portion of subsection 1104(5.1) of the Regulations before paragraph (a) is replaced by the following:

(5.1) For the purposes of Classes 41 to 41.2 of Schedule II, a taxpayer’s “gross revenue from a mine” includes

(4) The portion of subsection 1104(7) of the Regulations before paragraph (a) is replaced by the following:

(7) For the purposes of paragraphs 1100(1)(w) to (ya.2), subsections 1101(4a) to (4h) and 1102(8) and (9), section 1107 and Classes 12, 28 and 41 to 41.2 of Schedule II,

(5) Subsection 1104(8.1) of the Regulations is replaced by the following:

(8.1) For greater certainty, for the purposes of paragraphs (c) and (e) of Class 28 and paragraph (a) of Classes 41 to 41.2 in Schedule II, “production” means production in reasonable commercial quantities.

(6) The definition “biogas” in subsection 1104(13) of the Regulations is replaced by the following:

“biogas”

“biogas” means the gas produced by the anaerobic digestion of organic waste that is food and animal waste, manure, plant residue, pulp and paper by-product, separated organics, wood waste or sludge from an eligible sewage treatment facility. (biogaz)

(7) Paragraphs (a) and (b) of the definition “food and animal waste” in subsection 1104(13) of the Regulations are replaced by the following:

(a) generated during the preparation or processing of food or beverage for human or animal consumption;

(b) food or beverage that is no longer fit for human or animal consumption; or

(8) Subsection 1104(13) of the Regulations is amended by adding the following in alphabetical order:

“pulp and paper by-product”

“pulp and paper by-product” means tall oil soaps and crude tall oil that are produced as by-products of the processing of wood into pulp or paper and the by-product of a pulp or paper plant’s effluent treatment or its de-inking processes. (sous-produit d’usine de pâtes ou papiers)

“separated organics”

“separated organics” means organic waste (other than waste that is considered to be toxic or hazardous waste under any law of Canada or a province) that could, but for its use in a system that converts biomass into biogas, be disposed of in an eligible waste management facility or eligible landfill site. (matières organiques séparées)

(9) Subsections (1) to (5) and (8) are deemed to have come into force on March 21, 2013.

(10) Subsections (6) and (7) apply in respect of property acquired after March 20, 2013 that has not been used or acquired for use before March 21, 2013.

104. (1) Paragraph 3003(c) of the Regulations is replaced by the following:

(c) Individual and Family Assistance Act, R.S.Q., c. A-13.1.1, as it relates to the additional amounts for dependent children.

(2) Subsection (1) is deemed to have come into force on January 1, 2007.

105. Part XXX of the Regulations, as amended by section 104, is repealed.

106. (1) Paragraph 4600(1)(b) of the Regulations is replaced by the following:

(b) that is included or would, but for Class 28, 41, 41.1 or 41.2 in Schedule II, be included in paragraph (g) of Class 10 in Schedule II.

(2) Paragraph 4600(2)(j) of the Regulations is replaced by the following:

(j) a property included in Class 28, in paragraph (a), (a.1), (a.2) or (a.3) of Class 41 or in Class 41.1 or 41.2 in Schedule II that would, but for Class 28, 41, 41.1 or 41.2, as the case may be, be included in paragraph (k) or (r) of Class 10 of Schedule II;

(3) Subsections (1) and (2) apply to property acquired after March 20, 2013.

107. (1) The headings before section 4900 of the Regulations are replaced by the following:

PART XLIX REGISTERED PLANS  —  INVESTMENTS

(2) Subsection (1) is deemed to have come into force on March 23, 2011.

108. (1) Section 4900 of the Regulations is amended by adding the following after subsection (14):

(15) For the purposes of the definition “prohibited investment” in subsection 207.01(1) of the Act, property that is a qualified investment for a trust governed by a RRIF, RRSP or TFSA solely because of subsection (14) is prescribed property for the trust at any time if, at that time, the property is not described in any of subparagraphs (14)(a)(i) to (iii).

(2) Subsection (1) is deemed to have come into force on March 23, 2011.

109. (1) Part L of the Regulations is repealed.

(2) Subsection (1) is deemed to have come into force on March 23, 2011.

110. The portion of the definition “gross cost” in section 5204 of the Regulations after paragraph (b) is replaced by the following:

and, for the purposes of paragraph (a), if the partnership acquired the property from a person who was a majority-interest partner of the partnership immediately after the property was acquired, the capital cost to the partnership of the property is to be computed as if the property had been acquired at a capital cost equal to the gross cost to the person of the property, except that if the property was partnership property on December 31, 1971, its gross cost is its capital cost to the partnership as determined under subsection 20(3) or (5) of the Income Tax Application Rules. (coût brut)

111. (1) Section 5600 of the Regulations is amended by striking out “and” at the end of paragraph (b) and by adding the following after paragraph (c):

(d) the distribution by Fiat S.p.A., on January 1, 2011 to its common shareholders, of common shares of Fiat Industrial S.p.A;

(e) the distribution by Foster’s Group Limited, on May 9, 2011 to its common shareholders, of common shares of Treasury Wine Estates Limited; and

(f) the distribution by Telecom Corporation of New Zealand Limited, on November 30, 2011 to its common shareholders, of common shares of Chorus Limited.

(2) Subsection (1) is deemed to have come into force on January 1, 2011.

112. The Regulations are amended by adding the following before section 6501:

6500. For the purposes of paragraph 241(4)(j.2) of the Act, the following are prescribed laws of the Province of Quebec:

(a) An Act respecting the Québec Pension Plan, R.S.Q., c. R-9; and

(b) Individual and Family Assistance Act, R.S.Q., c. A-13.1.1, as it relates to the additional amounts for dependent children.

113. (1) The Regulations are amended by adding the following after section 6701:

6701.1 Notwithstanding section 6701, a corporation that applies after March 20, 2013 for registration under a provincial act listed in that section is not a prescribed labour-sponsored venture capital corporation for the purposes of the definition “approved share” in subsection 127.4(1) of the Act and the definition “eligible investment” in subsection 204.8(1) of the Act.

(2) Subsection (1) is deemed to have come into force on March 21, 2013.

114. (1) Section 8200.1 of the Regulations is replaced by the following:

8200.1 For the purposes of subsection 13(18.1), the definition “Canadian renewable and conservation expense” in subsection 66.1(6) and subparagraph 241(4)(d)(vi.1) of the Act, “prescribed energy conservation property” means property described in Class 43.1 or 43.2 in Schedule II.

(2) Subsection (1) is deemed to have come into force on December 21, 2012.

115. (1) The portion of subsection 8900(1) of the Regulations before paragraph (a) is replaced by the following:

8900. (1) For the purposes of subparagraph 110(1)(f)(iii) and paragraph 126(3)(a) of the Act, the following international organizations are prescribed:

(2) Subsection (1) applies to the 2013 and subsequent taxation years.

116. (1) The portion of Class 10 in Schedule II to the Regulations after paragraph (f.2) and before paragraph (g) is replaced by the following:

and property (other than property included in Class 41, 41.1 or 41.2 or property included in Class 43 that is described in paragraph (b) of that Class) that would otherwise be included in another Class in this Schedule, that is

(2) Subsection (1) applies to property acquired after March 20, 2013.

117. (1) The portion of Class 41 in Schedule II to the Regulations before paragraph (a) is replaced by the following:

Property (other than property included in Class 41.1 or 41.2)

(2) Subsection (1) applies to property acquired after March 20, 2013.

118. (1) Schedule II to the Regulations is amended by adding the following after Class 41.1:

Class 41.2

 

Property, other than an oil sands property or eligible mine development property,

(a) that is acquired by a taxpayer after March 20, 2013 and before 2021 and that, if acquired on March 20, 2013, would be included in paragraph (a) or (a.1) of Class 41; or

(b) that is acquired by a taxpayer after 2020 and that, if acquired on March 20, 2013, would be included in paragraph (a) or (a.1) of Class 41.

(2) Subsection (1) is deemed to have come into force on March 21, 2013.

119. (1) Subparagraph (d)(viii) of Class 43.1 in Schedule II to the Regulations is replaced by the following:

(viii) equipment used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of collecting landfill gas or digester gas, including such equipment that consists of piping (including above or below ground piping and the cost of drilling a well, or trenching, for the purpose of installing that piping), fans, compressors, storage tanks, heat exchangers and related equipment used to collect gas, to remove non-combustibles and contaminants from the gas or to store the gas, but not including property otherwise included in Class 10 or 17,

(2) The portion of subparagraph (d)(xiii) of Class 43.1 in Schedule II to the Regulations before clause (A) is replaced by the following:

(xiii) property that is part of a system that is used by the taxpayer, or by a lessee of the taxpayer, primarily to produce and store biogas, including equipment that is an anaerobic digester reactor, a buffer tank, a pre-treatment tank, biogas piping, a fan, a compressor, a heat exchanger, a biogas storage tank and equipment used to remove non-combustibles and contaminants from the gas, but not including

(3) Subsections (1) and (2) apply in respect of property acquired after March 20, 2013 that has not been used or acquired for use before March 21, 2013.

Coordinating Amendment

Marginal note:2012, c. 31

120. If this Act receives royal assent on or before January 1, 2014, then subsection 9(5) of the Jobs and Growth Act, 2012 is deemed never to have come into force and is repealed.

PART 2R.S., c. E-15 EXCISE TAX ACT

121. (1) The Excise Tax Act is amended by adding the following after section 285:

Marginal note:Definitions

285.01 (1) The following definitions apply in this section.

“electronic cash register”

« caisse enregistreuse électronique »

“electronic cash register” means a device that keeps a register or supporting documents through the means of an electronic device or computer system designed to record transaction data or any other electronic point-of-sale system.

“electronic suppression of sales device”

« appareil de suppression électronique des ventes »

“electronic suppression of sales device” means

(a) a software program that falsifies the records of electronic cash registers, including transaction data and transaction reports; or

(b) a hidden programming option, whether preinstalled or installed at a later time, embedded in the operating system of an electronic cash register or hardwired into the electronic cash register that

(i) may be used to create a virtual second till, or

(ii) may eliminate or manipulate transaction records, which may or may not be preserved in digital formats, in order to represent the actual or manipulated record of transactions in the electronic cash register.

Marginal note:Penalty  —  use

(2) Every person that uses, or that knowingly, or under circumstances attributable to neglect, carelessness or wilful default, participates in, assents to or acquiesces in the use of, an electronic suppression of sales device or a similar device or software in relation to records that are required to be kept by any person under section 286 is liable to a penalty of

(a) unless paragraph (b) applies, $5,000; or

(b) $50,000 if the action of the person occurs after the Minister has assessed a penalty payable by the person under this section or section 163.3 of the Income Tax Act.

Marginal note:Penalty  — possession

(3) Every person that acquires or possesses an electronic suppression of sales device or a right in respect of an electronic suppression of sales device that is, or is intended to be, capable of being used in relation to records that are required to be kept by any person under section 286 is liable to a penalty of

(a) unless paragraph (b) applies, $5,000; or

(b) $50,000 if the action of the person occurs after the Minister has assessed a penalty payable by the person under this section or section 163.3 of the Income Tax Act.

Marginal note:Penalty  — manufacturing or making available

(4) Every person that designs, develops, manufactures, possesses for sale, offers for sale, sells, transfers or otherwise makes available to another person, or that supplies installation, upgrade or maintenance services for, an electronic suppression of sales device that is, or is intended to be, capable of being used in relation to records that are required to be kept by any person under section 286 is liable to a penalty of

(a) unless paragraph (b) or (c) applies, $10,000;

(b) unless paragraph (c) applies, $50,000 if the action of the person occurs after the Minister has assessed a penalty payable by the person under subsection (2) or (3) or subsection 163.3(2) or (3) of the Income Tax Act; or

(c) $100,000 if the action of the person occurs after the Minister has assessed a penalty payable by the person under this subsection or subsection 163.3(4) of the Income Tax Act.

Marginal note:Limitation

(5) Despite section 296, if at any time the Minister assesses a penalty payable by a person under this section, the Minister is not to assess, at or after that time, another penalty payable by the person under this section that is in respect of an action of the person that occurred before that time.

Marginal note:Certain defences not available

(6) Except as otherwise provided in subsection (7), a person does not have a defence in relation to a penalty assessed under this section by reason that the person exercised due diligence to prevent the action from occurring.

Marginal note:Diligence

(7) A person is not liable for a penalty under subsection (3) or (4) in respect of an action of the person if the person exercised the degree of care, diligence and skill that a reasonably prudent person would have exercised in comparable circumstances to prevent the action from occurring.

Marginal note:Assessment vacated

(8) For the purposes of this section, if an assessment of a penalty under this section is vacated, the penalty is deemed to have never been assessed.

(2) Subsection (1) comes into force on the later of the day on which this Act receives royal assent and January 1, 2014.

Marginal note:2006, c. 4, s. 154(1)

122. (1) Paragraph 298(1)(e) of the Act is replaced by the following:

(e) in the case of any penalty payable by the person, other than a penalty under section 280.1, 285, 285.01 or 285.1, more than four years after the person became liable to pay the penalty;

(2) Subsection (1) comes into force on the later of the day on which this Act receives royal assent and January 1, 2014.

123. (1) The Act is amended by adding the following after section 327:

Marginal note:Definitions

327.1 (1) The definitions in subsection 285.01(1) apply in this section.

Marginal note:Offences

(2) Every person that, without lawful excuse, the proof of which lies on the person,

(a) uses an electronic suppression of sales device or a similar device or software in relation to records that are required to be kept by any person under section 286,

(b) acquires or possesses an electronic suppression of sales device, or a right in respect of an electronic suppression of sales device, that is, or is intended to be, capable of being used in relation to records that are required to be kept by any person under section 286,

(c) designs, develops, manufactures, possesses for sale, offers for sale, sells, transfers or otherwise makes available to another person an electronic suppression of sales device that is, or is intended to be, capable of being used in relation to records that are required to be kept by any person under section 286,

(d) supplies installation, upgrade or maintenance services for an electronic suppression of sales device that is, or is intended to be, capable of being used in relation to records that are required to be kept by any person under section 286, or

(e) participates in, assents to or acquiesces in the commission of, or conspires with any person to commit, an offence described in any of paragraphs (a) to (d),

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 $10,000 and not more than $500,000 or to imprisonment for a term not exceeding two years, or to both.

Marginal note:Prosecution on indictment

(3) Every person that is charged with an offence described in subsection (2) may, at the election of the Attorney General of Canada, be prosecuted on indictment and, if convicted, is, in addition to any penalty otherwise provided, liable to a fine of not less than $50,000 and not more than $1,000,000 or to imprisonment for a term not exceeding five years, or to both.

Marginal note:Penalty on conviction

(4) A person that is convicted of an offence under this section is not liable to pay a penalty imposed under any of sections 280.1, 280.11 and 283 to 285.1 or under a regulation made under this Part for the same action 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

(5) If, in any appeal under this Part, 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 upon that filing the proceedings before the Tax Court are stayed pending final determination of the outcome of the prosecution.

(2) Subsection (1) comes into force on the later of the day on which this Act receives royal assent and January 1, 2014.

Marginal note:1997, c. 10, s. 109(1)

124. (1) Section 10 of Part VI of Schedule V to the Act is replaced by the following:

10. A supply made by a public sector body of any property or service if all or substantially all of the supplies of the property or service by the body are made for no consideration, but not including a supply of

(a) blood or blood derivatives; or

(b) a parking space if the supply is made for consideration by way of lease, licence or similar arrangement in the course of a business carried on by the body.

(2) Subsection (1) is deemed to have come into force on December 17, 1990.

PART 3 VARIOUS MEASURES

Division 1Employment Insurance

1996, c. 23Employment Insurance Act

Marginal note:2012, c. 31, s. 433(1)

125. (1) Paragraph 4(2)(a) of the Employment Insurance Act is replaced by the following:

(a) the average for the 12-month period ending on April 30 in the preceding year of the Average Weekly Earnings for each month in that period

Marginal note:2012, c. 31, s. 433(1)

(2) Paragraph 4(2)(b) of the Act is replaced by the following:

(b) the ratio that the average for the 12-month period ending on April 30 in that preceding year of the Average Weekly Earnings for each month in that 12-month period bears to the average for the 12-month period ending 12 months prior to April 30 of that preceding year of the Average Weekly Earnings for each month in that 12-month period ending 12 months prior to April 30 of that preceding year.

Marginal note:2012, c. 31, s. 433(3)

(3) Subsection 4(3) of the Act is replaced by the following:

Marginal note:Subsequent years

(3) For years subsequent to the year in which the maximum yearly insurable earnings exceeds $39,000, before rounding down under subsection (4), the maximum yearly insurable earnings is the maximum yearly insurable earnings for the preceding year, before rounding down under that subsection, multiplied by the ratio that the average for the 12-month period ending on April 30 in that preceding year of the Average Weekly Earnings for each month in that 12-month period bears to the average for the 12-month period ending 12 months prior to April 30 of that preceding year of the Average Weekly Earnings for each month in that 12-month period ending 12 months prior to April 30 of that preceding year.

Marginal note:2012, c. 31, s. 435(1)

126. (1) Subsection 66(1) of the Act is replaced by the following:

Marginal note:Annual premium rate setting

66. (1) Subject to subsection (7) and section 66.32, the Commission shall set the premium rate for each year in order to generate just enough premium revenue to ensure that, at the end of the seven-year period that commences at the beginning of that year, the total of the amounts credited to the Employment Insurance Operating Account after December 31, 2008 is equal to the total of the amounts charged to that Account after that date.

Marginal note:2009, c. 2, s. 230(3)

(2) Subsection 66(1.1) of the Act is replaced by the following:

Marginal note:Premium rate for 2015 and 2016

(1.1) Despite subsection (1), the premium rate for the years 2015 and 2016 is 1.88%.

Marginal note:Application of sections 66.1 to 66.31

(1.2) Sections 66.1 to 66.31 apply in the years 2014 and 2015 even though the premium rates for the years 2015 and 2016 are set under subsection (1.1).

(3) Subsections 66(1.1) and (1.2) of the Act are repealed.

Marginal note:2012, c. 31, s. 435(2)

(4) The portion of subsection 66(2) of the Act before paragraph (a) is replaced by the following:

Marginal note:Factors

(2) The Commission shall set the premium rate based on

(5) Subsection 66(2) of the Act is amended by adding the following after paragraph (a):

(b) the actuary’s report provided under section 66.3 for that year;

Marginal note:2012, c. 19, s. 609(4)

(6) Paragraph 66(2)(e) of the Act is replaced by the following:

(e) any changes, announced by the Minister on or before July 22 in a year, to payments to be made under paragraph 77(1)(a), (b) or (c) during the following year; and

Marginal note:2008, c. 28, s. 127; 2010, c. 12, s. 2204(1); 2012, c. 31, s. 435(6)(E)

(7) Paragraph 66(2)(f) of the Act is replaced by the following:

(f) any other information that the Commission considers relevant.

(8) Section 66 of the Act is amended by adding the following after subsection (7):

Marginal note:Exception

(7.1) Despite subsection (7), the premium rate may be decreased by more than five one-hundredths of one per cent (0.05%) from 2016 to 2017.

(9) Subsection 66(7.1) of the Act is repealed.

Marginal note:2012, c. 31, s. 435(8)

(10) Subsection 66(9) of the Act is replaced by the following:

Marginal note:Time limit

(9) On or before September 14 in a year, the Commission shall set the premium rate for the following year.

Marginal note:2012, c. 31, s. 436(1)

127. (1) The portion of subsection 66.1(1) of the Act before paragraph (a) is replaced by the following:

Marginal note:Information provided

66.1 The Minister shall, on or before July 22 in a year, provide the actuary with the following information:

Marginal note:2012, c. 31, s. 436(7)

(2) Subsection 66.1(2) of the Act is repealed.

(3) Section 66.1 of the Act is replaced by the following:

Marginal note:Information provided

66.1 (1) The Minister shall, on or before July 22 in a year, provide the actuary and the Commission with the following information:

(a) if the Minister has made an announcement referred to in paragraph 66(2)(e), the forecast change in the amount of the payments to be made during each of the following seven years under paragraph 77(1)(a), (b) or (c), as the case may be;

(b) the forecast costs to be paid under paragraphs 77(1)(d), (d.1) and (g) during each of the following seven years, including any forecast change in those costs resulting from any change to the payments referred to in paragraph (a);

(c) the total of the amounts charged to the Employment Insurance Operating Account as of the last day of the most recent month for which that total is known by the Minister; and

(d) any prescribed information.

Marginal note:Regulations

(2) On the recommendation of the Minister, the Governor in Council may make regulations prescribing information referred to in paragraph (1)(d).

Marginal note:2012, c. 31, s. 437(1)

128. (1) The portion of subsection 66.2(1) of the Act before paragraph (a) is replaced by the following:

Marginal note:Information provided

66.2 (1) The Minister of Finance shall, on or before July 22 in a year, provide the actuary with the following information:

Marginal note:2012, c. 31, s. 437(5)

(2) Subsections 66.2(2) and (3) of the Act are replaced by the following:

Marginal note:Information provided to Governor in Council

(3) When a joint recommendation is made under subsection 66(1) in a year, the Minister of Finance shall provide the Governor in Council with the information that was provided to the actuary under subsection (1).

(3) Section 66.2 of the Act is replaced by the following:

Marginal note:Information provided

66.2 (1) The Minister of Finance shall, on or before July 22 in a year, provide the actuary and the Commission with the following information:

(a) the most current available forecast values of the economic variables that are relevant to the determination under section 66 of a premium rate for the following year;

(b) the amounts forecast under subparagraphs 77.1(a)(i) and (ii) and the total estimated under subparagraph 77.1(a)(iii); and

(c) any prescribed information.

Marginal note:Regulations

(2) On the recommendation of the Minister of Finance, the Governor in Council may make regulations prescribing information referred to in paragraph (1)(c).

Marginal note:2012, c. 31, s. 438(1)

129. The portion of section 66.3 of the Act before paragraph (a) is replaced by the following:

Marginal note:Actuary’s report

66.3 The actuary shall prepare actuarial forecasts and estimates for the purposes of sections 4, 66 and 69 and shall, on or before August 22 in a year, provide the Commission with a report that sets out

Marginal note:2012, c. 31, s. 438(1)

130. Section 66.31 of the Act is replaced by the following:

Marginal note:Report and summary

66.31 (1) The Commission shall, on or before September 14 in a year, make available to the public the report referred to in section 66.3 and a summary of that report.

Marginal note:Tabling in Parliament

(2) After the report and its summary are made available to the public, the Minister shall cause them to be laid before each House of Parliament on any of the next 10 days during which that House is sitting.

131. Sections 66.31 to 67 of the Act are replaced by the following:

Marginal note:Report and summary

66.31 (1) The Commission shall, on or before August 31 in a year, provide the Minister and the Minister of Finance with the report referred to in section 66.3 and a summary of that report.

Marginal note:Available to public

(2) The Commission shall, on the day on which a premium rate is set under section 66 or 66.32, make available to the public the report and its summary.

Marginal note:Tabling in Parliament

(3) After a premium rate is set, the Minister shall cause the report and its summary to be laid before each House of Parliament on any of the next 10 days during which that House is sitting.

Marginal note:Premium rate setting by Governor in Council

66.32 (1) On the joint recommendation of the Minister and the Minister of Finance, the Governor in Council may, on or before September 30 in a year,

(a) if the Governor in Council considers it to be in the public interest, substitute a premium rate for the following year that is different from the one set by the Commission under section 66; or

(b) if the Commission has not set a premium rate under that section by September 14 in the year, set one for the following year.

Marginal note:Non-application of subsection 66(7)

(2) Subsection 66(7) does not apply to the setting of the premium rate under subsection (1).

Marginal note:Rounding percentage rates

66.4 If the calculation of a premium rate under section 66 or 66.32 results in a rate that includes a fraction of one per cent, the resulting percentage is to be rounded to the nearest one hundredth of one per cent or, if the resulting percentage is equidistant from two one-hundredths of one percent, to the higher of them.

Marginal note:Publication in Canada Gazette

66.5 As soon as possible after a premium rate is set under section 66 or 66.32, the Commission shall publish it in Part I of the Canada Gazette.

Marginal note:User Fees Act

66.6 For greater certainty, the User Fees Act does not apply in respect of the premium rate set under section 66 or 66.32 or the premiums determined under sections 67 and 68.

Marginal note:Employee’s premium

67. Subject to section 70, a person employed in insurable employment shall pay, by deduction as provided in subsection 82(1), a premium equal to their insurable earnings multiplied by the premium rate set under section 66 or 66.32, as the case may be.

Marginal note:2012, c. 31, s. 438(1)

132. Section 66.5 of the Act is repealed.

Marginal note:2005, c. 30, s. 126

133. Section 67 of the Act is replaced by the following:

Marginal note:Employee’s premium

67. Subject to section 70, a person employed in insurable employment shall pay, by deduction as provided in subsection 82(1), a premium equal to their insurable earnings multiplied by the premium rate set under section 66.

Marginal note:2012, c. 31, s. 440(1)

134. The portion of section 77.1 of the Act before paragraph (a) is replaced by the following:

Marginal note:Forecasts and estimates

77.1 On or before July 22 in a year,

135. (1) Section 96 of the Act is amended by adding the following after subsection (8.93):

Marginal note:Temporary measure  —  small business refund 2013

(8.94) If an employer’s premium is $15,000 or less for 2012, the Minister shall refund to the employer a portion of the premium for 2013 determined by the following formula if that amount is more than $2:

P2 – P1

where

P1  
is the amount of the employer’s premium in 2012; and

P2  
is the amount of the employer’s premium in 2013.

Marginal note:P1 can equal zero

(8.95) For the purposes of subsection (8.94), P1 is equal to zero if a person was not required to pay an employer’s premium in 2012.

Marginal note:Maximum refund

(8.96) A refund under subsection (8.94) shall not exceed $1,000.

Marginal note:2012, c. 31, s. 307(2)

(2) Subsection 96(13.1) of the Act is replaced by the following:

Marginal note:No interest payable

(13.1) Despite subsection (13), no interest shall be paid on refunds payable under subsection (8.7), (8.91) or (8.94).

Marginal note:2009, c. 33, s. 16

136. Subsection 152.21(1) of the Act is replaced by the following:

Marginal note:Premium

152.21 (1) Every self-employed person who has entered into an agreement referred to in subsection 152.02(1) that has not been terminated or that is not deemed to have been terminated shall, in respect of every year, pay a self-employment premium equal to the amount determined under subsection (2) multiplied by the premium rate set under section 66 or 66.32, as the case may be.

2008, c. 28, s. 121Canada Employment Insurance Financing Board Act

137. The Canada Employment Insurance Financing Board Act is repealed.

Consequential Amendments

2009, c. 23Canada Not-for-profit Corporations Act

138. Section 348 of the Canada Not-for-profit Corporations Act is repealed.

2012, c. 19Jobs, Growth and Long-term Prosperity Act

139. (1) Subsection 609(2) of the Jobs, Growth and Long-term Prosperity Act is repealed.

(2) Subsection 609(6) of the Act is repealed.

140. Subsection 610(2) of the Act is repealed.

141. Subsection 611(2) of the Act is repealed.

142. Subsection 619(3) of the Act is repealed.

2012, c. 31Jobs and Growth Act, 2012

143. (1) Subsection 433(2) of the Jobs and Growth Act, 2012 is repealed.

(2) Subsection 433(4) of the Act is repealed.

144. Subsection 434(2) of the Act is repealed.

145. (1) Subsection 435(3) of the Act is repealed.

(2) Subsection 435(5) of the Act is repealed.

(3) Subsection 435(7) of the Act is repealed.

(4) Subsection 435(9) of the Act is repealed.

146. (1) Subsection 436(2) of the Act is repealed.

(2) Subsection 436(6) of the Act is repealed.

(3) Subsection 436(8) of the Act is repealed.

147. (1) Subsection 437(2) of the Act is repealed.

(2) Subsection 437(4) of the Act is repealed.

(3) Subsection 437(6) of the Act is repealed.

148. Subsection 438(2) of the Act is repealed.

149. Subsections 439(2) and (3) of the Act are repealed.

150. (1) Subsection 440(2) of the Act is repealed.

(2) Subsection 440(4) of the Act is repealed.

151. Subsection 441(2) of the Act is repealed.

152. Subsection 442(2) of the Act is repealed.

153. Subsection 443(2) of the Act is repealed.

154. Sections 448 and 449 of the Act are repealed.

155. Subsection 461(2) of the Act is repealed.

156. Subsections 463(2) to (4) of the Act are repealed.

SOR/96-445Employment Insurance (Fishing) Regulations

157. Subsection 13(1) of the Employment Insurance (Fishing) Regulations is amended by striking out “and” at the end of paragraph (a) and by replacing paragraph (b) with the following:

(b) if the date of delivery of a catch falls within the qualifying period described in section 8 of the Act, the earnings of the fisher from employment as a fisher, as determined in accordance with subsections 5(2) and (3), shall be allocated equally to each day of the fishing trip; and

(c) the earnings allocated under paragraph (b) to any day falling within the qualifying period are deemed, for the purposes of subsection 14(2) of the Act, to be insurable earnings in the calculation period but are not to be used to determine the calculation period under subsection 14(4) of the Act.

Coming into Force

Marginal note:April 1, 2016

158. (1) Subsections 126(1), (4), (5), (7), (8) and (10), 127(3) and 128(3) and sections 131 and 136 come into force on April 1, 2016.

Marginal note:January 1, 2017

(2) Subsection 126(3) comes into force on January 1, 2017.

Marginal note:January 1, 2018

(3) Subsection 126(9) comes into force on January 1, 2018.

Marginal note:April 7, 2013

(4) Section 157 is deemed to have come into force on April 7, 2013.

Division 2Financial Institutions (Conflicts of Interest)

R.S., c. 18 (3rd Supp.), Part IOffice of the Superintendent of Financial Institutions Act

159. Section 20 of the Office of the Superintendent of Financial Institutions Act is repealed.

1991, c. 45Trust and Loan Companies Act

160. Paragraph 164(g) of the Trust and Loan Companies Act is repealed.

1991, c. 46Bank Act

161. Paragraph 160(g) of the Bank Act is repealed.

Marginal note:2001, c. 9, s. 71

162. Section 160.1 of the Act is repealed.

Marginal note:2001, c. 9, s. 183

163. Paragraph 750(g) of the Act is repealed.

1991, c. 47Insurance Companies Act

164. (1) Paragraph 168(1)(g) of the Insurance Companies Act is repealed.

(2) Subsection 168(3) of the Act is repealed.

Marginal note:2001, c. 9, s. 465

165. Paragraph 797(g) of the Act is repealed.

2001, c. 9Financial Consumer Agency of Canada Act

166. Section 15 of the Financial Consumer Agency of Canada Act is repealed.

Division 3Financial Institutions (Investments)

1991, c. 45Trust and Loan Companies Act

167. Section 451 of the Trust and Loan Companies Act is amended by adding the following after subsection (5):

Marginal note:Non-application of subsection (2)

(5.1) No company shall, under subsection (2), acquire control of, or acquire or increase a substantial investment in, an entity referred to in paragraph 453(1)(j).

Marginal note:Holding

(5.2) If a company holds a substantial investment in an entity referred to in paragraph 453(1)(j) that it acquired or increased under subsection (2) before the coming into force of subsection (5.1), the company may continue to hold that substantial investment.

1991, c. 46Bank Act

168. Section 466 of the Bank Act is amended by adding the following after subsection (5):

Marginal note:Non-application of subsection (2)

(5.1) No bank shall, under subsection (2), acquire control of, or acquire or increase a substantial investment in, an entity referred to in paragraph 468(1)(j).

Marginal note:Holding

(5.2) If a bank holds a substantial investment in an entity referred to in paragraph 468(1)(j) that it acquired or increased under subsection (2) before the coming into force of subsection (5.1), the bank may continue to hold that substantial investment.

169. Section 928 of the Act is amended by adding the following after subsection (4):

Marginal note:Non-application of subsection (2)

(4.1) No bank holding company shall, under subsection (2), acquire control of, or acquire or increase a substantial investment in, an entity referred to in paragraph 930(1)(j).

Marginal note:Holding

(4.2) If a bank holding company holds a substantial investment in an entity referred to in paragraph 930(1)(j) that it acquired or increased under subsection (2) before the coming into force of subsection (4.1), the bank holding company may continue to hold that substantial investment.

1991, c. 47Insurance Companies Act

170. Section 493 of the Insurance Companies Act is amended by adding the following after subsection (5):

Marginal note:Non-application of subsection (2)

(5.1) No company shall, under subsection (2), acquire control of, or acquire or increase a substantial investment in, an entity referred to in paragraph 495(1)(j).

Marginal note:Holding

(5.2) If a company holds a substantial investment in an entity referred to in paragraph 495(1)(j) that it acquired or increased under subsection (2) before the coming into force of subsection (5.1), the company may continue to hold that substantial investment.

171. Section 552 of the Act is amended by adding the following after subsection (4):

Marginal note:Non-application of subsection (2)

(4.1) No society shall, under subsection (2), acquire control of, or acquire or increase a substantial investment in, an entity referred to in paragraph 554(1)(c).

Marginal note:Holding

(4.2) If a society holds a substantial investment in an entity referred to in paragraph 554(1)(c) that it acquired or increased under subsection (2) before the coming into force of subsection (4.1), the society may continue to hold that substantial investment.

172. Section 969 of the Act is amended by adding the following after subsection (4):

Marginal note:Non-application of subsection (2)

(4.1) No insurance holding company shall, under subsection (2), acquire control of, or acquire or increase a substantial investment in, an entity referred to in paragraph 971(1)(j).

Marginal note:Holding

(4.2) If an insurance holding company holds a substantial investment in an entity referred to in paragraph 971(1)(j) that it acquired or increased under subsection (2) before the coming into force of subsection (4.1), the insurance holding company may continue to hold that substantial investment.

1991, c. 48Cooperative Credit Associations Act

173. Section 388 of the Cooperative Credit Associations Act is amended by adding the following after subsection (5):

Marginal note:Non-application of subsection (2)

(5.1) No association shall, under subsection (2), acquire control of, or acquire or increase a substantial investment in, an entity referred to in paragraph 390(1)(h).

Marginal note:Holding

(5.2) If an association holds a substantial investment in an entity referred to in paragraph 390(1)(h) that it acquired or increased under subsection (2) before the coming into force of subsection (5.1), the association may continue to hold that substantial investment.

Division 4Passports

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

Marginal note:1995, c. 5, par. 25(1)(g)

174. Subsection 57(5) of the Criminal Code is replaced by the following:

Definition of “passport”

(5) In this section, “passport” has the same meaning as in section 2 of the Canadian Passport Order.

2013, c. 33, s. 174Amendment to the Department of Foreign Affairs, Trade and Development Act

175. Paragraph 11(1)(a) of the Department of Foreign Affairs, Trade and Development Act is replaced by the following:

(a) documents issued by the Minister of Citizenship and Immigration for travel purposes for which fees are payable; and

Division 5R.S., c. L-2Canada Labour Code

Amendments to the Act

Marginal note:2000, c. 20, s. 2(5)

176. (1) The definitions “health and safety officer” and “regional health and safety officer” in subsection 122(1) of the Canada Labour Code are repealed.

Marginal note:2000, c. 20, s. 2(3)

(2) The definition “danger” in subsection 122(1) of the Act is replaced by the following:

“danger”

« danger »

“danger” means any hazard, condition or activity that could reasonably be expected to be an imminent or serious threat to the life or health of a person exposed to it before the hazard or condition can be corrected or the activity altered;

Marginal note:2000, c. 20, s. 5

177. (1) The portion of paragraph 125(1)(d) of the Act before subparagraph (i) is replaced by the following:

(d) post in a conspicuous place accessible to every employee

Marginal note:2000, c. 20, s. 5

(2) Subparagraph 125(1)(d)(iii) of the Act is replaced by the following:

(iii) any other printed material related to health and safety that is prescribed or that may be directed by the Minister;

Marginal note:2000, c. 20, s. 5

(3) Paragraph 125(1)(x) of the Act is replaced by the following:

(x) comply with every oral or written direction given to the employer by the Minister or an appeals officer concerning the health and safety of employees;

Marginal note:2000, c. 20, s. 8

178. Paragraph 126(1)(i) of the Act is replaced by the following:

(i) comply with every oral or written direction of the Minister or an appeals officer concerning the health and safety of employees; and

Marginal note:2000, c. 20, s. 9

179. The portion of subsection 127(1) of the Act before paragraph (a) is replaced by the following:

Marginal note:Interference at accident scene prohibited

127. (1) Subject to subsection (2), if an employee is killed or seriously injured in a work place, no person shall, unless authorized to do so by the Minister, remove or in any way interfere with or disturb any wreckage, article or thing related to the incident except to the extent necessary to

Marginal note:2000, c. 20, s. 10

180. (1) Subsection 127.1(7) of the Act is repealed.

Marginal note:2000, c. 20, s. 10

(2) The portion of subsection 127.1(8) of the Act before paragraph (a) is replaced by the following:

Marginal note:Referral to the Minister

(8) The employee or employer may refer a complaint that there has been a contravention of this Part to the Minister in the following circumstances:

Marginal note:2000, c. 20, s. 10

(3) Subsection 127.1(9) of the Act is replaced by the following:

Marginal note:Investigation

(9) The Minister shall investigate the complaint referred to in subsection (8).

Marginal note:2000, c. 20, s. 10

(4) The portion of subsection 127.1(10) of the Act before paragraph (a) is replaced by the following:

Marginal note:Duty and power of Minister

(10) On completion of the investigation, the Minister

Marginal note:2000, c. 20, s. 10

(5) Paragraphs 127.1(10)(b) and (c) of the English version of the Act are replaced by the following:

(b) may, if in the Minister’s opinion it is appropriate, recommend that the employee and employer resolve the matter between themselves; or

(c) shall, if the Minister concludes that a danger exists as described in subsection 128(1), issue directions under subsection 145(2).

Marginal note:2000, c. 20, s. 10

(6) Subsection 127.1(11) of the Act is replaced by the following:

Marginal note:Interpretation

(11) For greater certainty, nothing in this section limits the Minister’s authority under section 145.

Marginal note:2000, c. 20, s. 10

181. (1) Subsection 128(8) of the Act is replaced by the following:

Marginal note:Investigation by employer

(7.1) The employer shall, immediately after being informed of a refusal under subsection (6), investigate the matter in the presence of the employee who reported it. Immediately after concluding the investigation, the employer shall prepare a written report setting out the results of the investigation.

Marginal note:Employer to take immediate action

(8) If, following its investigation, the employer agrees that a danger exists, the employer shall take immediate action to protect employees from the danger. The employer shall inform the work place committee or the health and safety representative of the matter and the action taken to resolve it.

Marginal note:2000, c. 20, s. 10

(2) Subsection 128(10) of the Act is replaced by the following:

Marginal note:Investigation of continued refusal

(10) If the work place committee receives a report under subsection (9), it shall designate, to investigate the matter immediately in the presence of the employee who reported it, two members of the committee, namely, one employee member from those chosen under paragraph 135.1(1)(b) and one employer member who is not from those chosen under that paragraph. If the health and safety representative receives a report under subsection (9), they shall immediately investigate the matter in the presence of the employee who reported it and a person who is designated by the employer.

Marginal note:Report

(10.1) Immediately after concluding the investigation, the members of the work place committee designated under subsection (10) or the health and safety representative shall provide a written report to the employer that sets out the results of the investigation and their recommendations, if any.

Marginal note:Additional information

(10.2) After receiving a report under subsection (10.1) or under this subsection, the employer may provide the members of the work place committee or the health and safety representative with additional information and request that they reconsider their report taking into consideration that additional information. If the work place committee members or the health and safety representative considers it appropriate, they may provide a revised report to the employer.

Marginal note:2000, c. 20, s. 10

(3) Subsection 128(11) of the English version of the Act is replaced by the following:

Marginal note:If more than one report

(11) If more than one employee has made a report of a similar nature, those employees may designate one employee from among themselves to be present at the investigation.

Marginal note:2000, c. 20, s. 10

(4) Subsections 128(12) to (14) of the Act are replaced by the following:

Marginal note:Absence of employee

(12) The employer, the members of a work place committee or the health and safety representative may proceed with their investigation in the absence of the employee who reported the matter if that employee or a person designated under subsection (11) chooses not to be present.

Marginal note:Decision of employer

(13) After receiving a report under subsection (10.1) or (10.2) and taking into account any recommendations in it, the employer, if it does not intend to provide additional information under subsection (10.2), shall make one of the following decisions:

(a) agree that a danger exists;

(b) agree that a danger exists but consider that the circumstances provided for in paragraph (2)(a) or (b) apply;

(c) determine that a danger does not exist.

Marginal note:Decision  — paragraph (13)(a)

(14) If the employer agrees that a danger exists under paragraph (13)(a), the employer shall take immediate action to protect employees from the danger. The employer shall inform the work place committee or the health and safety representative of the matter and the action taken to resolve it.

Marginal note:Decision  — paragraph (13)(b) or (c)

(15) If the employer makes a decision under paragraph (13)(b) or (c), the employer shall notify the employee in writing. If the employee disagrees with the employer’s decision, the employee is entitled to continue the refusal, subject to subsections 129(1.2), (1.3), (6) and (7).

Marginal note:Information to Minister

(16) If the employee continues the refusal under subsection (15), the employer shall immediately inform the Minister and the work place committee or the health and safety representative of its decision and the continued refusal. The employer shall also provide a copy of the report on the matter prepared under subsection (7.1) to the Minister along with a copy of any report referred to in subsection (10.1) or (10.2).

Marginal note:2000, c. 20, s. 10

182. (1) Subsection 129(1) of the Act is replaced by the following:

Marginal note:Minister’s investigation

129. (1) If the Minister is informed of the employer’s decision and the continued refusal under subsection 128(16), the Minister shall investigate the matter unless the Minister is of the opinion that

(a) the matter is one that could more appropriately be dealt with, initially or completely, by means of a procedure provided for under Part I or III or under another Act of Parliament;

(b) the matter is trivial, frivolous or vexatious; or

(c) the continued refusal by the employee under 128(15) is in bad faith.

Marginal note:Notices of decision not to investigate

(1.1) If the Minister does not proceed with an investigation, the Minister shall inform the employer and the employee in writing, as soon as feasible, of that decision. The employer shall then inform in writing, as the case may be, the members of the work place committee who were designated under subsection 128(10) or the health and safety representative and the person who is designated by the employer under that subsection of the Minister’s decision.

Marginal note:Return to work

(1.2) On being informed of the Minister’s decision not to proceed with an investigation, the employee is no longer entitled to continue their refusal under subsection 128(15).

Marginal note:Refusal of work during investigation

(1.3) If the Minister proceeds with an investigation, the employee may continue to refuse, for the duration of the investigation, to use or operate the machine or thing, to work in the place or to perform the activity that may constitute a danger.

Marginal note:Persons present during the investigation

(1.4) If the Minister proceeds with an investigation, the Minister may do so in the presence of the employer, the employee and one other person who is

(a) an employee member of the work place committee;

(b) the health and safety representative; or

(c) if a person mentioned in paragraph (a) or (b) is not available, another employee from the work place who is designated by the employee.

Marginal note:2000, c. 20, s. 10

(2) Subsection 129(2) of the French version of the Act is replaced by the following:

Marginal note:Rapports multiples

(2) Si l’enquête touche plusieurs employés, ceux-ci peuvent désigner l’un d’entre eux pour agir en leur nom dans le cadre de l’enquête.

Marginal note:2000, c. 20, s. 10

(3) Subsections 129(3) and (4) of the Act are replaced by the following:

Marginal note:Absence of any person

(3) The Minister may proceed with an investigation in the absence of any person mentioned in subsection (1.4) or (2) if that person chooses not to be present.

Marginal note:Precedent

(3.1) During the Minister’s investigation, the Minister shall verify if there are previous or ongoing investigations in relation to the same employer that involve substantially the same issues and may

(a) if there was a previous investigation, rely on the findings of that investigation to decide whether a danger exists; or

(b) if there is an ongoing investigation, combine that investigation with the investigation the Minister is conducting and issue a single decision.

Marginal note:Decision of Minister

(4) The Minister shall, on completion of an investigation made under subsection (1), make one of the decisions referred to in paragraphs 128(13)(a) to (c) and shall immediately give written notification of the decision to the employer and the employee.

Marginal note:2000, c. 20, s. 10

(4) The portion of subsection 129(5) of the Act before paragraph (a) is replaced by the following:

Marginal note:Continuation of work

(5) If the employee has exercised their right under subsection (1.3), the employer may, during the investigation and until the Minister has issued a decision, require that the employee concerned remain at a safe location near the place in respect of which the investigation is being made or assign the employee reasonable alternative work, and shall not assign any other employee to use or operate the machine or thing, work in that place or perform the activity referred to in subsection (1) unless

Marginal note:2000, c. 20, s. 10

(5) Subsections 129(6) and (7) of the Act are replaced by the following:

Marginal note:Directions by Minister

(6) If the Minister makes a decision referred to in paragraph 128(13)(a), the Minister shall issue the directions under subsection 145(2) that the Minister considers appropriate, and an employee may continue to refuse to use or operate the machine or thing, work in that place or perform that activity until the directions are complied with or until they are varied or rescinded under this Part.

Marginal note:Appeal

(7) If the Minister makes a decision referred to in paragraph 128(13) (b) or (c), the employee is not entitled under section 128 or this section to continue to refuse to use or operate the machine or thing, work in that place or perform that activity, but the employee, or a person designated by the employee for the purpose, may appeal the decision, in writing, to an appeals officer within 10 days after receiving notice of the decision.

Marginal note:2000, c. 20, s. 10

183. Subsection 133(3) of the Act is replaced by the following:

Marginal note:Restriction

(3) A complaint in respect of the exercise of a right under section 128 or 129 may not be made unless the employee has complied with subsection 128(6) or the Minister has received the reports referred to in subsection 128(16), as the case may be, in relation to the matter that is the subject-matter of the complaint.

Marginal note:2000, c. 20, s. 10

184. Paragraph 134.1(4)(f) of the Act is replaced by the following:

(f) shall cooperate with the Minister;

Marginal note:2000, c. 20, s. 10

185. (1) The portion of subsection 135(6) of the Act before paragraph (b) is replaced by the following:

Marginal note:Exemption if collective agreement

(6) If, under a collective agreement or any other agreement between an employer and the employer’s employees, a committee of persons has been appointed and the committee has, in the opinion of the Minister, a responsibility for matters relating to health and safety in the work place to such an extent that a work place committee established under subsection (1) for that work place would not be necessary,

(a) the Minister may, in writing, exempt the employer from the requirements of subsection (1) in respect of that work place;

Marginal note:2000, c. 20, s. 10

(2) Paragraph 135(7)(h) of the Act is replaced by the following:

(h) shall cooperate with the Minister;

Marginal note:2000, c. 20, s. 10

186. (1) Subsection 135.1(4) of the Act is replaced by the following:

Marginal note:Notification

(4) If a trade union fails to select a person under subparagraph (1)(b)(ii), the Minister may notify in writing the local branch of the trade union, and shall send a copy of any such notification to the trade union’s national or international headquarters and to the employer, indicating that the committee is not established until a person is selected in accordance with that subparagraph.

Marginal note:2000, c. 20, s. 10

(2) Subsection 135.1(9) of the Act is replaced by the following:

Marginal note:Records

(9) A committee shall ensure that accurate records are kept of all of the matters that come before it and that minutes are kept of its meetings. The committee shall make the minutes and records available to the Minister at the Minister’s request.

Marginal note:2000, c. 20, s. 10

187. (1) Subsection 136(3) of the Act is replaced by the following:

Marginal note:Notification

(3) If a trade union fails to select a person under subsection (2), the Minister may so notify in writing the local branch of the trade union. The Minister shall send a copy of the notification to the trade union’s national or international headquarters and to the employer.

Marginal note:2000, c. 20, s. 10

(2) Paragraph 136(5)(h) of the Act is replaced by the following:

(h) shall cooperate with the Minister;

Marginal note:2000, c. 20, s. 10

188. Section 137 of the Act is replaced by the following:

Marginal note:Committees or representatives —  specified work places

137. Despite sections 135 and 136, if an employer controls more than one work place or the size or nature of the operations of the employer or those of the work place precludes the effective functioning of a single work place committee or health and safety representative, as the case may be, for those work places, the employer shall, subject to the approval or in accordance with the direction of the Minister, establish or appoint in accordance with section 135 or 136, as the case may be, a work place committee or health and safety representative for the work places that are specified in the approval or direction.

Marginal note:2000, c. 20, s. 11(1)

189. Subsection 137.1(5) of the Act is replaced by the following:

Marginal note:Ineligibility

(5) No person to whom powers, duties or functions have been delegated under subsection 140(1), or under an agreement entered into under subsection 140(2), is eligible to be appointed to the Commission or as alternate chairperson under subsection (2.1), or to be designated for the purposes of subsection 137.2(1) or (2).

Marginal note:2000, c. 20, s. 14

190. Section 140 of the Act and the heading before it are replaced by the following:

Exercise of Minister’s Powers in Relation to Health and Safety

Marginal note:Delegation

140. (1) Subject to any terms and conditions specified by the Minister, the Minister may delegate to any qualified person or class of persons any of the powers, duties or functions the Minister is authorized to exercise or perform for the purposes of this Part.

Marginal note:Agreements  — delegating provincial employees

(2) Subject to subsection (3), the Minister may, with the approval of the Governor in Council, enter into an agreement with any province or any provincial body specifying the terms and conditions under which the Minister may delegate to a person employed by that province or provincial body the powers, duties or functions that the Minister is authorized to exercise or perform for the purposes of this Part.

Marginal note:Exception

(3) The powers, duties or functions of the Minister provided for in section 130, subsections 135(3), 137.1(1) to (2.1), and (7) to (9), 137.2(4), 138(1) to (2) and (4) to (6), 140(1), (2) and (4), 144(1) and 149(1), sections 152 and 155 and subsections 156.1(1), 157(3) and 159(2), shall not be the subject of an agreement under subsection (2).

Marginal note:Certificate of authority

(4) The Minister may provide any person to whom powers, duties or functions have been delegated under subsection (1), or under an agreement entered into under subsection (2), with a certificate of authority and, when exercising those powers or performing those duties or functions, that person shall show the certificate to any person who asks to see it.

Marginal note:Limitation of liability

(5) A person to whom powers, duties or functions have been delegated under subsection (1), or under an agreement entered into under subsection (2), is not personally liable for anything done or omitted to be done by them in good faith in the actual or purported exercise of those powers or performance of those duties or functions.

Marginal note:Duty of Her Majesty

(6) Despite subsection (5), and for greater certainty, Her Majesty in right of Canada is not relieved of any civil liability to which Her Majesty in right of Canada may otherwise be subject.

Marginal note:2000, c. 20, s. 14

191. (1) The portion of subsection 141(1) of the Act before paragraph (a) is replaced by the following:

Marginal note:Accessory powers

141. (1) Subject to section 143.2, the Minister may, in carrying out the Minister’s duties and at any reasonable time, enter any work place controlled by an employer and, in respect of any work place, may

Marginal note:2000, c. 20, s. 14

(2) Paragraph 141(1)(c) of the English version of the Act is replaced by the following:

(c) be accompanied or assisted by any person and bring any equipment that the Minister deems necessary to carry out the Minister’s duties;

Marginal note:2000, c. 20, s. 14

(3) Paragraphs 141(1)(f) to (j) of the English version of the Act are replaced by the following:

(f) direct the employer to ensure that any place or thing specified by the Minister not be disturbed for a reasonable period pending an examination, test, inquiry, investigation or inspection in relation to the place or thing;

(g) direct any person not to disturb any place or thing specified by the Minister for a reasonable period pending an examination, test, inquiry, investigation or inspection in relation to the place or thing;

(h) direct the employer to produce documents and information relating to the health and safety of the employer’s employees or the safety of the work place and to permit the Minister to examine and make copies of or take extracts from those documents and that information;

(i) direct the employer or an employee to make or provide statements, in the form and manner that the Minister may specify, respecting working conditions and material and equipment that affect the health or safety of employees;

(j) direct the employer or an employee or a person designated by either of them to accompany the Minister while the Minister is in the work place; and

Marginal note:2000, c. 20, s. 14

(4) Subsection 141(2) of the Act is replaced by the following:

Marginal note:Directions whether or not in work place

(2) The Minister may issue a direction under subsection (1) whether or not the Minister is in the work place at the time the direction is issued.

Marginal note:2000, c. 20, s. 14

(5) Subsection 141(3) of the English version of the Act is replaced by the following:

Marginal note:Return of material and equipment

(3) On request by the person from whom material or equipment was taken or removed for testing under paragraph (1)(d), the Minister shall return that material or equipment to the person after testing is completed unless it is required for the purposes of a prosecution under this Part.

Marginal note:2000, c. 20, s. 14

(6) Subsections 141(4) to (9) of the Act are replaced by the following:

Marginal note:Investigation of deaths

(4) The Minister shall investigate every death of an employee that occurred in the work place or while the employee was working, or that was the result of an injury that occurred in the work place or while the employee was working.

Marginal note:Investigation of motor vehicle accidents

(5) If the death results from a motor vehicle accident on a public road, as part of the investigation the Minister shall obtain a copy of any police report as soon as possible after the accident.

Marginal note:Report

(6) Within 10 days after completing a written report on the findings of an inquiry or investigation, the Minister shall provide the employer and the work place committee or the health and safety representative with a copy of the report.

Marginal note:2000, c. 20, s. 14

192. (1) The portion of subsection 141.1(1) of the Act before paragraph (a) is replaced by the following:

Marginal note:Inspections

141.1 (1) If the Minister conducts an inspection of the work place at the work place, it shall be done in the presence of

Marginal note:2000, c. 20, s. 14

(2) Paragraphs 141.1(1)(a) and (b) of the French version of the Act are replaced by the following:

a) soit de deux membres du comité local, l’un ayant été désigné par les employés ou en leur nom et l’autre par l’employeur;

b) soit du représentant et d’une personne désignée par l’employeur.

Marginal note:2000, c. 20, s. 14

(3) Subsection 141.1(2) of the Act is replaced by the following:

Marginal note:Inspection not to be delayed

(2) The Minister may proceed with an inspection in the absence of any person mentioned in subsection (1) if that person chooses not to be present.

Marginal note:2000, c. 20, s. 14

193. Sections 142 to 143.1 of the Act are replaced by the following:

Marginal note:Duty to assist

142. The person in charge of a work place and every person employed at, or in connection with, a work place shall give all reasonable assistance to

(a) every appeals officer and the Minister to enable them to carry out their duties under this Part; and

(b) every person to whom powers, duties or functions have been delegated under subsection 140(1), or under an agreement entered into under subsection 140(2), who is exercising those powers or performing those duties or functions.

Marginal note:Obstruction and false statements

143. No person shall obstruct or hinder, or make a false or misleading statement either orally or in writing to

(a) an appeals officer or the Minister engaged in carrying out their duties under this Part; or

(b) any person to whom powers, duties or functions have been delegated under subsection 140(1), or under an agreement entered into under subsection 140(2), who is exercising those powers or performing those duties or functions.

Marginal note:Provision of information

143.1 No person shall prevent an employee from providing information to

(a) an appeals officer or the Minister engaged in carrying out their duties under this Part; or

(b) any person to whom powers, duties or functions have been delegated under subsection 140(1), or under an agreement entered into under subsection 140(2), who is exercising those powers or performing those duties or functions.

Marginal note:2000, c. 20, s. 14

194. (1) Subsection 144(1) of the Act is replaced by the following:

Marginal note:Evidence in civil suits precluded

144. (1) No person to whom powers, duties or functions have been delegated under subsection 140(1), or under an agreement entered into under subsection 140(2), and no person who has accompanied or assisted that person in exercising those powers or performing those duties or functions may be required to give testimony in a civil suit with regard to information obtained in exercising those powers or performing those duties or functions, except with the written permission of the Minister.

Marginal note:Evidence in civil suits precluded  — Minister

(1.1) The Minister shall not be required to give testimony in a civil suit with regard to information obtained in the exercise of powers or the performance of duties or functions the Minister is authorized to exercise or perform under this Part, except for those powers, duties or functions that shall not be the subject of an agreement entered into under subsection 140(2).

Marginal note:2000, c. 20, s. 14

(2) Subsections 144(3) to (5) of the Act are replaced by the following:

Marginal note:Non-disclosure of information

(3) Subject to subsection (4), none of the Minister, an appeals officer who is admitted to a work place under the powers conferred by section 141 and a person who is admitted to a work place under the powers conferred by section 141 that are delegated to them under subsection 140(1), or under an agreement entered into under subsection 140(2), and no person accompanying them, shall disclose to any person any information obtained in the work place by the Minister, officer or person with regard to any secret process or trade secret, except for the purposes of this Part or as required by law.

Marginal note:Privileged information

(4) All information that, under the Hazardous Materials Information Review Act, an employer is exempt from disclosing under paragraph 125.1(d) or (e) of this Act or under paragraph 13(a) or (b) or 14(a) or (b) of the Hazardous Products Act and that is obtained in a work place under section 141 is privileged and, notwithstanding the Access to Information Act or any other Act or law, shall not be disclosed to any other person except for the purposes of this Part.

Marginal note:Information not to be published

(5) No person shall, except for the purposes of this Part or for the purposes of a prosecution under this Part, publish or disclose the results of an analysis, examination, testing, inquiry, investigation or sampling made or taken under section 141.

Marginal note:2000, c. 20, s. 14

195. (1) The portion of subsection 145(1) of the Act before paragraph (a) is replaced by the following:

Marginal note:Direction to terminate contravention

145. (1) If the Minister is of the opinion that a provision of this Part is being contravened or has recently been contravened, the Minister may direct the employer or employee concerned, or both, to

Marginal note:2000, c. 20, s. 14

(2) The portion of subsection 145(1.1) of the English version of the Act before paragraph (a) is replaced by the following:

Marginal note:Confirmation in writing

(1.1) If the Minister has issued a direction orally, the Minister shall provide a written version of it

Marginal note:2000, c. 20, s. 14

(3) The portion of subsection 145(2) of the Act before paragraph (a) is replaced by the following:

Marginal note:Dangerous situations  — direction to employer

(2) If the Minister considers that the use or operation of a machine or thing, a condition in a place or the performance of an activity constitutes a danger to an employee while at work,

Marginal note:2000, c. 20, s. 14

(4) The portion of paragraph 145(2)(a) of the English version of the Act before subparagraph (i) is replaced by the following:

(a) the Minister shall notify the employer of the danger and issue directions in writing to the employer directing the employer, immediately or within the period that the Minister specifies, to take measures to

Marginal note:2000, c. 20, s. 14

(5) Paragraph 145(2)(b) of the English version of the Act is replaced by the following:

(b) the Minister may, if the Minister considers that the danger or the hazard, condition or activity that constitutes the danger cannot otherwise be corrected, altered or protected against immediately, issue a direction in writing to the employer directing that the place, machine, thing or activity in respect of which the direction is issued not be used, operated or performed, as the case may be, until the Minister’s directions are complied with, but nothing in this paragraph prevents the doing of anything necessary for the proper compliance with the direction.

Marginal note:2000, c. 20, s. 14

(6) Subsections 145(2.1) to (4) of the Act are replaced by the following:

Marginal note:Dangerous situations  — direction to employee

(2.1) If the Minister considers that the use or operation of a machine or thing by an employee, a condition in a place or the performance of an activity by an employee constitutes a danger to the employee or to another employee, the Minister shall, in addition to the directions issued under paragraph (2)(a), issue a direction in writing to the employee to discontinue the use, operation or activity or cease to work in that place until the employer has complied with the directions issued under that paragraph.

Marginal note:Posting notice of danger

(3) If the Minister issues a direction under paragraph (2)(a), the Minister shall affix or cause to be affixed to or near the place, machine or thing in respect of which the direction is issued, or in the area in which the activity in respect of which the direction is issued is performed, a notice of danger in the form and containing the information that the Minister may specify, and no person shall remove the notice unless authorized to do so by the Minister.

Marginal note:Cessation of use

(4) If the Minister issues a direction under paragraph (2)(b) in respect of a place, machine, thing or activity, the employer shall cause the use of the place, the use or operation of the machine or thing or the performance of the activity to be discontinued, and no person shall use or operate the machine or thing, work in that place or perform the activity until the measures directed by the Minister have been taken.

Marginal note:2000, c. 20, s. 14

(7) The portion of subsection 145(5) of the Act before paragraph (b) is replaced by the following:

Marginal note:Copies of directions and reports

(5) If the Minister issues a direction in writing under subsection (1) or (2) or makes a report in writing to an employer on any matter under this Part, the employer shall without delay

(a) cause a copy or copies of the direction or report to be posted in a conspicuous place accessible to every employee;

Marginal note:2000, c. 20, s. 14

(8) Subsections 145(6) to (8) of the Act are replaced by the following:

Marginal note:Copy to person who made complaint

(6) If the Minister issues a direction under subsection (1), (2) or (2.1) or makes a report referred to in subsection (5) in respect of an investigation made by the Minister following a complaint, the Minister shall immediately provide a copy of the direction or report to each person, if any, whose complaint led to the investigation.

Marginal note:Copy to employer

(7) If the Minister issues a direction to an employee under subsection (1) or (2.1), the Minister shall immediately provide a copy of the direction to the employee’s employer.

Marginal note:Response to direction or report

(8) If the Minister issues a direction under subsection (1), (2) or (2.1) or makes a report referred to in subsection (5), the Minister may require the employer or the employee to whom the direction is issued or to whom the report relates to respond in writing to the direction or report, within the time that the Minister may specify. The employer or employee shall provide a copy of the response to the policy committee and a copy to the work place committee or the health and safety representative.

Marginal note:2000, c. 20, s. 14

196. Subsection 145.1(2) of the Act is replaced by the following:

Marginal note:Status

(2) For the purposes of sections 146 to 146.5, an appeals officer has all of the powers, duties and functions of the Minister under this Part, except for those referred to in subsection (1), section 130, subsections 135(3), 137.1(1) to (2.1), and (7) to (9), 137.2(4), 138(1) to (2) and (4) to (6), 140(1), (2) and (4), 144(1) and 149(1), sections 152 and 155 and subsections 156.1(1), 157(3) and 159(2).

Marginal note:Limitation of liability

(3) An appeals officer is not personally liable for anything done or omitted to be done by the officer in good faith under the authority or purported authority of this Part.

Marginal note:2000, c. 20, s. 14

197. Subsection 146(1) of the Act is replaced by the following:

Marginal note:Appeal of direction

146. (1) An employer, employee or trade union that feels aggrieved by a direction issued by the Minister under this Part may appeal the direction in writing to an appeals officer within 30 days after the date of the direction being issued or confirmed in writing.

Marginal note:R.S., c. 26 (4th Supp.), s. 5(4); 1993, c. 42, s. 11(3)(F)

198. Subsection 157(6) of the Act is replaced by the following:

Marginal note:Compliance with standards

(6) Regulations made under this section that prescribe or incorporate a standard but that require the standard to be complied with only to the extent that compliance is practicable or reasonably practicable in circumstances governed by the standard may require the employer to report to the Minister the reason that full compliance is not practicable or reasonably practicable in particular circumstances.

Transitional Provisions

Marginal note:Pending proceedings

199. (1) The Canada Labour Code, as it read immediately before the coming into force of this section, applies to

(a) any proceedings  —  commenced before that coming into force  —  with respect to which a health and safety officer or a regional health and safety officer may exercise powers or perform duties or functions under Part II of that Act, as it read immediately before that coming into force; and

(b) any procedure  —  commenced before that coming into force  —  relating to a refusal to work commenced under sections 128 to 129 of that Act, as it read immediately before that coming into force.

Marginal note:Appeal

(2) With respect to directions issued by a health and safety officer under Part II of the Canada Labour Code, an employer, employee or trade union that feels aggrieved by a direction may appeal the direction in writing to an appeals officer within 30 days after the date of the direction being issued or confirmed in writing. The appeal is deemed to have been brought under subsection 146(1) of that Act.

Marginal note:Health and safety officers

(3) For the purposes of subsection (1), health and safety officers or regional health and safety officers designated under subsection 140(1) of the Canada Labour Code, as it read immediately before the coming into force of this section, continue to act, respectively, as health and safety officers or regional health and safety officers.

Consequential Amendments

R.S., c. N-7National Energy Board Act

Marginal note:2000, c. 20, s. 27

200. Subsection 9(4) of the National Energy Board Act is repealed.

R.S., c. 24 (3rd Supp.), Part IIIHazardous Materials Information Review Act

Marginal note:2000, c. 20, s. 26; 2005, c. 34, par. 79(d)

201. Paragraph 46(2)(c) of the Hazardous Materials Information Review Act is replaced by the following:

(c) any official of the Department of Employment and Social Development, any appeals officer within the meaning of subsection 122(1) of the Canada Labour Code, or any person to whom powers, duties or functions have been delegated by the Minister of Labour under subsection 140(1) of that Act, or under an agreement entered into under subsection 140(2), of that Act, for the purposes of the administration or enforcement of Part II of that Act;

R.S., c. 15 (4th Supp.)Non-smokers’ Health Act

Marginal note:2000, c. 20, s. 28

202. The definition “inspector” in subsection 2(1) of the Non-smokers’ Health Act is replaced by the following:

“inspector”

« inspecteur »

“inspector” means a person who is designated as an inspector under section 9;

Coming into Force

Marginal note:Order in council

203. The provisions of this Division come into force on a day or days to be fixed by order of the Governor in Council.

Division 6Changes to the Canadian Ministry

2005, c. 34Department of Human Resources and Skills Development Act

204. The long title of the Department of Human Resources and Skills Development Act is replaced by the following:

An Act respecting the Department of Employment and Social Development and to amend and repeal certain related Acts205. Section 1 of the Act is replaced by the following:

Marginal note:Short title

1. This Act may be cited as the Department of Employment and Social Development Act.

206. The definition “Minister” in section 2 of the Act is replaced by the following:

“Minister”

« ministre »

“Minister” means the Minister of Employment and Social Development.

207. The headings before section 3 of the Act are replaced by the following:

PART 1 DEPARTMENT OF EMPLOYMENT AND SOCIAL DEVELOPMENT

Continuation

208. Subsections 3(1) and (2) of the Act are replaced by the following:

Marginal note:Department continued

3. (1) The Department of Human Resources and Skills Development is continued under the name of the Department of Employment and Social Development over which the Minister of Employment and Social Development, appointed by commission under the Great Seal, shall preside.

Marginal note:Employment and Social Development Canada

(2) The expressions “Employment and Social Development Canada” and “Emploi et Développement social Canada” in any document issued or executed in relation to the powers, duties and functions conferred on the Minister by this or any other Act are deemed to be references to the “Department of Employment and Social Development” and the “ministère de l’Emploi et du Développement social”, respectively.

209. Section 4 of the Act is replaced by the following:

Marginal note:Deputy Minister

4. (1) The Governor in Council may appoint an officer called the Deputy Minister of Employment and Social Development to hold office during pleasure and to be the deputy head of the Department.

Marginal note:Associate Deputy Ministers

(2) The Governor in Council may appoint one or more Associate Deputy Ministers of Employment and Social Development to hold office during pleasure and each shall have the rank and status of a deputy head of a department and exercise, under the Deputy Minister of Employment and Social Development, the powers and perform the duties and functions as deputies of the Minister and otherwise that the Minister may specify.

Marginal note:Deputy Minister of Labour

(3) The Governor in Council may designate the Deputy Minister of Employment and Social Development or one of the Associate Deputy Ministers to be Deputy Minister of Labour.

Marginal note:2010, c. 12, s. 1723

210. Paragraphs 20(2)(a) and (b) of the Act are replaced by the following:

(a) the Deputy Minister of Employment and Social Development, who shall be the Chairperson of the Commission;

(b) an Associate Deputy Minister of Employment and Social Development, who shall be the Vice-Chairperson of the Commission;

211. The Act is amended by adding the following before section 71:

Marginal note:Application

70.1 This Part applies to the following Acts, programs and activities:

(a) the Canada Pension Plan;

(b) the Old Age Security Act;

(c) the Employment Insurance Act;

(d) the Canada Student Financial Assistance Act;

(e) the Canada Student Loans Act;

(f) the Canada Labour Code;

(g) any programs that are supported by grants or contributions under section 7; and

(h) any activities in respect of which the administration or enforcement is the responsibility of the Minister under the Immigration and Refugee Protection Regulations.

Marginal note:2012, c. 19, s. 224

212. The portion of subsection 71(1) of the Act before paragraph (a) is replaced by the following:

Marginal note:Powers

71. (1) Subject to the regulations, the Minister may administer or enforce electronically the Acts, programs and activities referred to in paragraphs 70.1(a) to (e), (g) and (h), the Minister of Labour may administer or enforce electronically the Canada Labour Code and the Commission may administer or enforce electronically the Employment Insurance Act, including for the purposes of

Marginal note:2012, c. 19, s. 224

213. (1) Subsections 72(1) and (2) of the Act are replaced by the following:

Marginal note:Electronic manner of filing documents

72. (1) Unless another manner of filing a document or information is expressly required by a provision of an Act referred to in section 70.1 or any of its regulations, by a term or condition of a program referred to in paragraph 70.1(g) or by a provision of a regulation referred to in paragraph 70.1(h), the filing of an electronic version of the document or information is to be considered as the filing of a document or information in accordance with the provision or the term or condition.

Marginal note:Power to prescribe form or manner of filing

(2) A provision of an Act referred to in section 70.1 or any of its regulations, or a term or condition of a program referred to in paragraph 70.1(g) or a provision of a regulation referred to in paragraph 70.1(h), that provides for a power to issue, prescribe or in any other manner establish a form or to establish the manner of filing a document or information includes the power to do so with respect to an electronic document or information.

Marginal note:2012, c. 19, s. 224

(2) The portion of subsection 72(3) of the Act before paragraph (a) is replaced by the following:

Marginal note:Written documents or information

(3) A requirement under a provision of an Act referred to in section 70.1 or any of its regulations, or a term or condition of a program referred to in paragraph 70.1(g) or a provision of a regulation referred to in paragraph 70.1(h), that a document be in writing or information be provided in writing is satisfied by an electronic document or information if the electronic document or information

Marginal note:2012, c. 19, s. 224

(3) The portion of subsection 72(4) of the Act before paragraph (a) is replaced by the following:

Marginal note:Signatures

(4) A requirement under a provision of an Act referred to in section 70.1 or any of its regulations, or a term or condition of a program referred to in paragraph 70.1(g) or a provision of a regulation referred to in paragraph 70.1(h), for a signature is satisfied by an electronic signature if the electronic signature

Marginal note:2012, c. 19, s. 224

214. (1) Subparagraph 73(1)(c)(ii) of the English version of the Act is replaced by the following:

(ii) the date and hour when an electronic document or electronic information is deemed to be sent or received and the place where it is deemed to be sent or received,

Marginal note:2012, c. 19, s. 224

(2) Paragraph 73(1)(g) of the Act is replaced by the following:

(g) respecting the establishment and operation of electronic systems or any other technology to be used in the administration or enforcement of an Act referred to in section 70.1, of a program referred to in paragraph 70.1(g) or of a provision of a regulation referred to in paragraph 70.1(h), and respecting the manner in which and the extent to which any provision of that Act or its regulations, any term or condition of that program or any provision of that regulation applies to the electronic systems; and

Marginal note:2012, c. 19, s. 224

(3) Subsection 73(3) of the Act is replaced by the following:

Marginal note:Accessibility

(3) The Minister, the Minister of Labour or the Commission, as the case may be, shall ensure that any document that is incorporated by reference in a regulation in respect of which the administration or the enforcement is their responsibility is accessible.

R.S., c. S-3Salaries Act

Marginal note:2005, c. 16, s. 21(1)

215. Paragraph 4.1(3)(z.2) of the Salaries Act is replaced by the following:

(z.2) the Minister of Employment and Social Development;

(z.21) the Minister of Infrastructure, Communities and Intergovernmental Affairs; and

Marginal note:2005, c. 16, par. 21(3)(b)

216. Section 4.2 of the Act is replaced by the following:

Marginal note:Index

4.2 The index referred to in subsections 4.1(2), (4) and (6) for a calendar year is the index of the average percentage increase in base-rate wages for the calendar year, resulting from major settlements negotiated with bargaining units of 500 or more employees in the private sector in Canada, as published by the Department of Employment and Social Development within three months after the end of that calendar year.

Transitional Provisions

Marginal note:Deputy Minister and Associate Deputy Minister

217. (1) Any person who holds the office of Deputy Minister of Human Resources and Skills Development or of Associate Deputy Minister of Human Resources and Skills Development immediately before the day on which this section comes into force is deemed to hold the office of Deputy Minister of Employment and Social Development or of Associate Deputy Minister of Employment and Social Development, respectively, as of that day.

Marginal note:Deputy Minister of Labour

(2) Any person who holds the office of Deputy Minister of Labour immediately before the day on which this section comes into force is deemed to have been designated Deputy Minister of Labour under subsection 4(3) of the Department of Employment and Social Development Act, as enacted by section 209 of this Act, as of that day.

Marginal note:Positions

218. Nothing in this Act is to be construed as affecting the status of an employee who, immediately before the coming into force of this section, occupied a position in the Department of Human Resources and Skills Development except that the employee, on the coming into force of this section, occupies their position in the Department of Employment and Social Development under the authority of the Minister of Employment and Social Development.

Marginal note:Transfer of appropriations

219. Any amount appropriated by an Act of Parliament for the fiscal year in which this section comes into force to defray the charges and expenses of the Department of Human Resources and Skills Development that is unexpended is deemed to have been appropriated to defray the charges and expenses of the Department of Employment and Social Development.

Marginal note:Transfer of powers, duties and functions

220. If, under any Act of Parliament, any instrument made under an Act of Parliament or any order, contract, lease, licence or other document, any power, duty or function is vested in or may be exercised or performed by the Minister of Human Resources and Skills Development, that power, duty or function is vested in or may be exercised or performed by the Minister of Employment and Social Development, the Deputy Minister of Employment and Social Development or the appropriate officer of the Department of Employment and Social Development, as the case may be.

Consequential Amendments

R.S., c. A-1Access to Information Act

Marginal note:2005, c. 34, s. 59

221. Schedule I to the Access to Information Act is amended by striking out the following under the heading “DEPARTMENTS AND MINISTRIES OF STATE”:

Department of Human Resources and Skills Development

Ministère des Ressources humaines et du Développement des compétences

222. Schedule I to the Act is amended by adding the following in alphabetical order under the heading “DEPARTMENTS AND MINISTRIES OF STATE”:

Department of Employment and Social Development

Ministère de l’Emploi et du Développement social

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

Marginal note:2005, c. 34, s. 66

223. Schedule I to the Financial Administration Act is amended by striking out the following:

Department of Human Resources and Skills Development

Ministère des Ressources humaines et du Développement des compétences

224. Schedule I to the Act is amended by adding the following in alphabetical order:

Department of Employment and Social Development

Ministère de l’Emploi et du Développement social

Marginal note:2006, c. 9, s. 270

225. Part I of Schedule VI to the Act is amended by striking out the following:

Department of Human Resources and Skills Development

Ministère des Ressources humaines et du Développement des compétences

226. Part I of Schedule VI to the Act is amended by adding the following in alphabetical order:

Department of Employment and Social Development

Ministère de l’Emploi et du Développement social

R.S., c. P-21Privacy Act

Marginal note:2005, c. 34, s. 73

227. The schedule to the Privacy Act is amended by striking out the following under the heading “DEPARTMENTS AND MINISTRIES OF STATE”:

Department of Human Resources and Skills Development

Ministère des Ressources humaines et du Développement des compétences

228. The schedule to the Act is amended by adding the following in alphabetical order under the heading “DEPARTMENTS AND MINISTRIES OF STATE”:

Department of Employment and Social Development

Ministère de l’Emploi et du Développement social

R.S., c. 4 (2nd Supp.)Family Orders and Agreements Enforcement Assistance Act

Marginal note:2012, c. 19, subpar. 694(c)(i) and s. 695(2)(E)

229. Paragraph (a) of the definition “information bank director” in section 2 of the Family Orders and Agreements Enforcement Assistance Act is replaced by the following:

(a) with respect to any of the information banks controlled by the Department of Employment and Social Development that may be searched under this Part, the Minister of Employment and Social Development,

Marginal note:2005, c. 35, s. 53; 2012, c. 19, subpar. 694(c)(ii) and 695(d)(i)

230. Section 6 of the Act is replaced by the following:

Marginal note:Agreements regarding comprehensive pension plans

6. With the approval of the Governor in Council, the Minister of Employment and Social Development may, on behalf of the Government of Canada, enter into an agreement with each province providing a comprehensive pension plan, as defined under the Canada Pension Plan, for the purpose of obtaining the approval of that province for

(a) the creation, for the purposes of this Act, of an information bank to be controlled by the Department of Employment and Social Development in respect of contributors to and beneficiaries under that comprehensive pension plan; and

(b) the release of information under this Part from the information bank referred to in paragraph (a) and from any other information bank controlled by the Department of Employment and Social Development that contains information in respect of contributors to and beneficiaries under that comprehensive pension plan.

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

231. Subparagraph 241(4)(d)(x.1) of the Income Tax Act is replaced by the following:

(x.1) to an official of the Department of Employment and Social Development solely for the purpose of the administration or enforcement of a program established under the authority of the Department of Employment and Social Development Act in respect of children who are deceased or missing as a result of an offence, or a probable offence, under the Criminal Code,

1991, c. 30Public Sector Compensation Act

Marginal note:2005, c. 34, s. 76

232. Schedule I to the Public Sector Compensation Act is amended by striking out the following under the heading “DEPARTMENTS”:

Department of Human Resources and Skills Development

Ministère des Ressources humaines et du Développement des compétences

233. Schedule I to the Act is amended by adding the following in alphabetical order under the heading “DEPARTMENTS”:

Department of Employment and Social Development

Ministère de l’Emploi et du Développement social

1994, c. 28Canada Student Financial Assistance Act

Marginal note:2008, c. 28, s. 108(4)

234. Subsection 15(2) of the Canada Student Financial Assistance Act is repealed.

2001, c. 27Immigration and Refugee Protection Act

Marginal note:2013, c. 33, s. 161

235. The portion of subsection 30(1.43) of the Immigration and Refugee Protection Act before paragraph (a) is replaced by the following:

Marginal note:Revocation or suspension of opinion

(1.43) If, in the view of the Department of Employment and Social Development, public policy considerations that are specified in instructions given by the Minister of Employment and Social Development justify it, that Department may

Terminology

Marginal note:Replacement of “Department of Human Resources and Skills Development Act”

236. (1) Every reference to the “Department of Human Resources and Skills Development Act” is replaced by a reference to the “Department of Employment and Social Development Act” in the following provisions:

(a) subsection 144(5.1) of the Canada Labour Code;

(b) in the Canada Pension Plan,

(i) subsections 38(1) and (3) and paragraph 38(4)(b),

(ii) section 82,

(iii) the portion of section 83 before paragraph (a), and

(iv) paragraph 108(3)(e);

(c) in the Employment Insurance Act,

(i) section 65.21,

(ii) paragraphs 77(1)(d.1) and (g),

(iii) section 113, and

(iv) subsection 114(1);

(d) paragraph 28(1)(g) of the Federal Courts Act as enacted by subsection 272(2) of the Jobs, Growth and Long-term Prosperity Act, chapter 19 of the Statutes of Canada, 2012;

(e) in the Income Tax Act,

(i) paragraph 56(1)(a.3),

(ii) subparagraph 110(1)(g)(i), and

(iii) the definition “qualifying educational program” in subsection 118.6(1);

(f) in the Labour Adjustment Benefits Act,

(i) the definition “Social Security Tribunal” in subsection 2(1), and

(ii) subsection 13(7); and

(g) in the Old Age Security Act,

(i) paragraph 5(3)(b),

(ii) subparagraph 19(6)(f)(ii),

(iii) subparagraph 21(9)(d)(ii), and

(iv) subsection 28(1).

Marginal note:Other references to Department of Human Resources and Skills Development Act

(2) Unless the context requires otherwise, every reference to the Department of Human Resources and Skills Development Act in any provision of an Act of Parliament other than a provision referred to in subsection (1) is, with any grammatical adaptations, to be read as a reference to the Department of Employment and Social Development Act.

Marginal note:Replacement in regulations, etc.

(3) Unless the context requires otherwise, “Department of Human Resources and Skills Development Act” is replaced by “Department of Employment and Social Development Act” in

(a) any regulation, as defined in section 2 of the Statutory Instruments Act; and

(b) any other instrument made

(i) in the execution of a power conferred by or under an Act of Parliament, or

(ii) by or under the authority of the Governor in Council.

Marginal note:Replacement of “Department of Human Resources and Skills Development”

237. (1) Every reference to the “Department of Human Resources and Skills Development” is replaced by a reference to the “Department of Employment and Social Development” in the following provisions:

(a) in the Canada Labour Code,

(i) subsection 70.1(1), and

(ii) the definition “regional director” in section 166;

(b) in the Canada Pension Plan,

(i) paragraph 66(3)(d),

(ii) subsection 103(3), and

(iii) subsection 104.1(1);

(c) paragraph 81(d) of the Canadian Forces Members and Veterans Re-establishment and Compensation Act;

(d) subsection 28(1) of the Canadian Human Rights Act;

(e) paragraph 107(5)(i) of the Customs Act;

(f) paragraph 6.7(d) of the Department of Veterans Affairs Act;

(g) section 15 of the Family Orders and Agreements Enforcement Assistance Act;

(h) paragraph 46(2)(c) of the Hazardous Materials Information Review Act;

(i) subsection 89(1.1) of the Immigration and Refugee Protection Act;

(j) paragraph 56(1)(n.1) of the Income Tax Act;

(k) subsections 28(2) and (5) of the Labour Adjustment Benefits Act;

(l) section 33.1 of the Old Age Security Act;

(m) section 67.1 of the Parliament of Canada Act;

(n) paragraph 109.2(d) of the Pension Act; and

(o) paragraph 30(2)(c) of the War Veterans Allowance Act.

Marginal note:Other references to Department of Human Resources and Skills Development

(2) Unless the context requires otherwise, every reference to the Department of Human Resources and Skills Development in any provision of an Act of Parliament other than a provision referred to in subsection (1) is, with any grammatical adaptations, to be read as a reference to the Department of Employment and Social Development.

Marginal note:Replacement in regulations, etc.

(3) Unless the context requires otherwise, “Department of Human Resources and Skills Development” is replaced by “Department of Employment and Social Development” in

(a) any regulation, as defined in section 2 of the Statutory Instruments Act; and

(b) any other instrument made

(i) in the execution of a power conferred by or under an Act of Parliament, or

(ii) by or under the authority of the Governor in Council.

Marginal note:Replacement of “Minister of Human Resources and Skills Development”

238. (1) Every reference to the “Minister of Human Resources and Skills Development” is replaced by a reference to the “Minister of Employment and Social Development” in the following provisions:

(a) subsection 212(2) of the Canada Labour Code;

(b) in the Canada Pension Plan,

(i) section 3,

(ii) subsection 4(3),

(iii) subsections 26.1(1) and (2),

(iv) section 27,

(v) paragraph 27.2(1)(a),

(vi) the definition “Minister” in subsection 42(1),

(vii) the definition “Minister” in section 91, and

(viii) the portion of subsection 117(1) before paragraph (a);

(c) the definition “Minister” in subsection 2(1) of the Canada Student Loans Act;

(d) the definition “Minister” in subsection 2(1) of the Employment Insurance Act;

(e) section 3 of the Energy Costs Assistance Measures Act;

(f) in the Federal-Provincial Fiscal Arrangements Act, chapter F-8 of the Revised Statutes of Canada, 1985,

(i) subsection 24.3(2),

(ii) the definition “Minister” in section 24.9,

(iii) section 25.8, and

(iv) paragraph 40(f);

(g) section 3 of the Government Annuities Act;

(h) in the Immigration and Refugee Protection Act,

(i) subsection 4(2.1),

(ii) subsection 92(1.1), and

(iii) section 93;

(i) in the Income Tax Act,

(i) subparagraph 118.5(1)(a)(ii), and

(ii) the definition “designated educational institution” in subsection 118.6(1);

(j) the definition “Minister” in subsection 2(1) of the Labour Adjustment Benefits Act;

(k) in the Old Age Security Act,

(i) the definition “Minister” in section 2, and

(ii) section 46;

(l) in the Unemployment Assistance Act,

(i) the definition “Minister” in section 2, and

(ii) section 6; and

(m) the definition “Minister” in section 2 of the Universal Child Care Benefit Act.

Marginal note:Other references to Minister of Human Resources and Skills Development

(2) Unless the context requires otherwise, every reference to the Minister of Human Resources and Skills Development in any provision of an Act of Parliament other than a provision referred to in subsection (1) is, with any grammatical adaptations, to be read as a reference to the Minister of Employment and Social Development.

Marginal note:Replacement in regulations, etc.

(3) Unless the context requires otherwise, “Minister of Human Resources and Skills Development” is replaced by “Minister of Employment and Social Development” in

(a) any regulation, as defined in section 2 of the Statutory Instruments Act; and

(b) any other instrument made

(i) in the execution of a power conferred by or under an Act of Parliament, or

(ii) by or under the authority of the Governor in Council.

Division 7Dominion Coal Blocks

Marginal note:Definitions

239. The following definitions apply in this Division.

“Crow’s Nest Pass Act”

« Loi du Nid-de-Corbeau »

“Crow’s Nest Pass Act” means An Act to authorize a Subsidy for a Railway through the Crow’s Nest Pass, chapter 5 of the Statutes of Canada 1897.

“Dominion Coal Blocks”

« Réserve fédérale de charbon »

“Dominion Coal Blocks” means the selected land referred to in paragraph 1(i.) of the Crow’s Nest Pass Act, being

(a) Parcel Identifier 014-832-020, Parcel 73, shown on Plan DD 729 (F25(2)), District Lot 4589, Kootenay District, British Columbia; and

(b) Parcel Identifier 014-832-038, Parcel 82, shown on Plan DD 729 (F25(1)), District Lot 4589, Kootenay District, British Columbia, except Part included in Plan 6844.

“Minister”

« ministre »

“Minister” means the Minister designated under section 240, or, if none is designated, the Minister of Natural Resources.

Marginal note:Designation of Minister

240. The Governor in Council may, by order, designate any federal minister to be the Minister referred to in this Division.

Marginal note:Dominion Coal Blocks

241. Nothing in the Crow’s Nest Pass Act, in the agreement mentioned in that Act or in any covenant in the instrument conveying the Dominion Coal Blocks to His Majesty in right of Canada operates so as to limit the power of Her Majesty in right of Canada to hold, dispose of or otherwise deal with the Dominion Coal Blocks, or any part of the Dominion Coal Blocks or any interest in them, in any manner and on any conditions that Her Majesty in right of Canada considers appropriate.

Marginal note:Powers of Minister

242. (1) With the approval of the Governor in Council, and subject to any terms that the Governor in Council considers appropriate, the Minister may dispose of the Dominion Coal Blocks, or any part of the Dominion Coal Blocks or any interest in them, in any manner and on any conditions established under section 241.

Marginal note:Exception  — easements

(2) Despite subsection (1), the Minister may grant an easement over any part of the Dominion Coal Blocks without the approval of the Governor in Council.

Marginal note:Powers of Minister

(3) The Minister may do anything that he or she considers necessary to prepare the Dominion Coal Blocks, or any part of the Dominion Coal Blocks or any interest in them, for disposition.

Marginal note:Administration

(4) The Minister has the administration of the Dominion Coal Blocks.

Marginal note:Application of provincial law

243. A disposition under section 241 or subsection 242(1) or (2) may be effected by any instrument by which an interest in real property may be disposed of by a private person under the laws in force in British Columbia.

Marginal note:Her Majesty’s obligations are terminated

244. All obligations and liabilities of Her Majesty in right of Canada arising out of any of the matters referred to in paragraph 1(i.) of the Crow’s Nest Pass Act, and all rights acquired by any other party under any covenant in the instrument conveying the Dominion Coal Blocks to His Majesty in right of Canada relating to those matters, are extinguished.

Marginal note:No liability

245. No action or other proceeding, including any action or proceeding in restitution, or for damages of any kind, that is based on or is in relation to any agreement in respect of the Dominion Coal Blocks that existed on or before the coming into force of this section lies or may be instituted by anyone against Her Majesty in right of Canada or any minister or any employee or agent of Her Majesty in right of Canada, or any person engaged to provide advice or services to Her Majesty in right of Canada in relation to such an agreement, for anything done or omitted to be done or for anything purported to have been done or omitted to be done, in the exercise or performance of their powers, duties and functions.

Marginal note:No compensation

246. No one is entitled to any compensation from Her Majesty in right of Canada in connection with the coming into force of section 244.

Marginal note:Application of money from disposition

247. The money from a sale or other disposition made under section 241 or subsection 242(1) or (2) minus an amount equal to the amount paid or payable by Her Majesty in right of Canada, or any agent of Her Majesty in right of Canada, under an agreement relating to the disposition, including the management of that disposition, is public money for the purposes of the Financial Administration Act.

Marginal note:Federal Real Property and Federal Immovables Act

248. The Federal Real Property and Federal Immovables Act does not apply to any disposition of the Dominion Coal Blocks.

Division 8Reorganization of Certain Crown Corporations (Bridges)

Interpretation

Definition of “amalgamated corporation”

249. In this Division, “amalgamated corporation” means the corporation resulting from the amalgamation after which each of the corporations referred to in paragraphs 252(1)(a) to (d) has been amalgamated with at least one other corporation referred to in subsection 252(1).

Amalgamation

Marginal note:Continuance under Canada Business Corporations Act

250. Despite section 103 of the Financial Administration Act, the directors of the Blue Water Bridge Authority may, under subsection 268(4) of the Canada Business Corporations Act, apply for a certificate of continuance.

Marginal note:Articles

251. For the purposes of paragraph 90(1)(c) of the Financial Administration Act, The Federal Bridge Corporation Limited may, before any amalgamation referred to in subsection 252(1), amend its articles to make a material change in the objects or purposes for which it was incorporated, or the restrictions on the businesses or activities that it may carry on, as set out in its articles.

Marginal note:Amalgamation authorized

252. (1) For the purposes of paragraph 90(1)(e) of the Financial Administration Act and despite section 14 of An Act to incorporate St. Mary’s River Bridge Company, the amalgamation of the following corporations with each other is authorized, the amalgamation of any of the following corporations with the corporation that results from the amalgamation of two or three of the other corporations is authorized and the amalgamation of any of the following corporations with any corporation that results from the amalgamation of two of the other corporations with the third corporation is authorized:

(a) The Federal Bridge Corporation Limited;

(b) St. Mary’s River Bridge Company;

(c) The Seaway International Bridge Corporation, Ltd.; and

(d) Blue Water Bridge Authority.

Marginal note:Transitional

(2) The chief executive officer and the members of the board of directors of The Federal Bridge Corporation Limited continue as the chief executive officer and members of the board of directors, respectively, of

(a) the corporation that results from the amalgamation of The Federal Bridge Corporation Limited with either or both of the corporations referred to in paragraphs (1)(b) and (c); and

(b) the corporation that results from the amalgamation of either of the corporations referred to in paragraphs (1)(b) and (c) with the corporation that results from the amalgamation of The Federal Bridge Corporation Limited with the other of the corporations referred to in those paragraphs, if The Federal Bridge Corporation Limited amalgamated with only one of them.

Marginal note:Amalgamated corporation an agent

253. The amalgamated corporation is an agent of Her Majesty in right of Canada.

Marginal note:Contracts

254. The amalgamated corporation may enter into contracts with Her Majesty as though it were not an agent of Her Majesty.

Marginal note:Borrowing authorized

255. The amalgamated corporation may borrow money otherwise than from the Crown, including by means of the issuance, sale and pledge of bonds, debentures, notes or other evidence of indebtedness, as long as the total principal amount of those borrowings that is outstanding does not exceed $130,000,000 at any time.

Marginal note:Charges

256. (1) The amalgamated corporation may fix and charge tolls, fees or other charges for the use of a bridge or tunnel that it owns or operates.

Marginal note:Authorization by amalgamated corporation

(2) The amalgamated corporation may authorize another person to fix or charge tolls, fees or other charges for the use of such a bridge or tunnel.

Marginal note:Auditor

257. The Auditor General of Canada is the auditor of the amalgamated corporation.

Marginal note:No compensation

258. Despite the provisions of any contract, agreement or order, no person who is appointed to hold office as a part-time member of the board of directors of The Federal Bridge Corporation Limited, of a corporation that results from an amalgamation referred to in subsection 252(2) or of Blue Water Bridge Authority has any right to claim or receive any compensation, damages, indemnity or other form of relief from Her Majesty in right of Canada or from any employee or agent of Her Majesty for ceasing to hold that office or for the abolition of that office following any amalgamation referred to in subsection 252(1).

Marginal note:Financial Administration Act

259. For the purposes of Part I of Schedule III to the Financial Administration Act, the reference in that Part to The Federal Bridge Corporation Limited is deemed to be a reference to the name of any corporation that results from an amalgamation referred to in subsection 252(1), if that name is “The Federal Bridge Corporation Limited”.

Marginal note:Payments in Lieu of Taxes Act

260. For the purposes of Schedule III to the Payments in Lieu of Taxes Act, the reference in that Schedule to The Federal Bridge Corporation Limited is deemed to be a reference to the name of any corporation that results from an amalgamation referred to in subsection 252(1), if that name is “The Federal Bridge Corporation Limited”.

Consequential Amendments

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

Marginal note:SOR/2002-173, s. 1

261. Part I of Schedule III to the Financial Administration Act is amended by striking out the following:

Blue Water Bridge Authority

Administration du pont Blue Water

1998, c. 10Canada Marine Act

262. Section 142 of the Canada Marine Act is repealed.

2007, c. 1International Bridges and Tunnels Act

263. Items 26, 39, 42, 45 and 50 of the schedule to the International Bridges and Tunnels Act are repealed.

Repeals

Marginal note:1901, c. 112

264. An Act to incorporate the St. Mary River Bridge Company is repealed.

Marginal note:1928, c. 64

265. An Act to incorporate the St. Clair Transit Company is repealed.

Marginal note:1934, c. 66

266. An Act to incorporate Thousand Islands Bridge Company is repealed.

Marginal note:1955, c. 64

267. An Act to incorporate St. Mary’s River Bridge Company is repealed.

Marginal note:1964-65, c. 6

268. The Blue Water Bridge Authority Act is repealed.

Coming into Force

Marginal note:Order in council

269. Sections 253 to 263 and 266 to 268 come into force on a day or days to be fixed by order of the Governor in Council.

Division 9R.S., c. F-11Financial Administration Act

270. Section 100 of the Financial Administration Act is replaced by the following:

Marginal note:Security interests

100. (1) Subject to subsection (2), no agent corporation, for the purposes of securing payment of a debt or performance of an obligation, shall charge, mortgage, hypothecate, cede and transfer, pledge or otherwise create an interest in or charge on any property held by the corporation.

Marginal note:Exception

(2) Subject to any terms and conditions set out in the designation, an agent corporation designated by the Minister may pledge any securities or cash that it holds, or give deposits, as security for the payment or performance of any obligation of the corporation arising out of any derivative that it enters into or guarantees for the management of financial risks.

Division 10R.S., c. N-15National Research Council Act

271. Section 2 of the National Research Council Act is amended by adding the following in alphabetical order:

“Chairperson”

« premier conseiller »

“Chairperson” means the Chairperson of the Council appointed under subsection 3(1);

Marginal note:2010, c. 12, s. 1757

272. Subsection 3(1) of the Act is replaced by the following:

Marginal note:Council established

3. (1) There is established a Council, to be called the National Research Council of Canada, consisting of a President, a Chairperson and not more than 10 other members, to be appointed by the Governor in Council.

273. Section 9 of the Act is replaced by the following:

Marginal note:Acting President

9. (1) If the President is absent or unable to act or if the office of President is vacant, the Minister may appoint another person to act as President, but that person may act as President for a period of more than 90 days only with the approval of the Governor in Council.

Marginal note:Acting Chairperson

(2) If the Chairperson is absent or unable to act or if the office of Chairperson is vacant, the Minister may appoint another person to act as Chairperson, but that person may act as Chairperson for a period of more than 90 days only with the approval of the Governor in Council.

274. Subsection 11(2) of the Act is repealed.

275. Section 13 of the Act is replaced by the following:

Marginal note:Meetings

13. The Council shall meet at least three times a year at the times and places in Canada that the Chairperson may determine. The Chairperson presides at those meetings.

Division 111995, c. 18Veterans Review and Appeal Board Act

276. Section 4 of the Veterans Review and Appeal Board Act is replaced by the following:

Marginal note:Establishment of Board

4. There is established an independent board, to be known as the Veterans Review and Appeal Board, consisting of not more than 25 permanent members to be appointed by the Governor in Council and any number of temporary members that are appointed under section 6.

Division 121997, c. 40Canada Pension Plan Investment Board Act

Amendments to the Act

277. (1) Subsection 10(4) of the Canada Pension Plan Investment Board Act is replaced by the following:

Marginal note:Appointment factors

(4) Before making a recommendation to the Governor in Council with respect to the appointment of directors and before making an appointment under subsection (8), the Minister shall

(a) have regard to the desirability of having on the board of directors

(i) directors who are representative of the various regions of Canada, and

(ii) a sufficient number of directors with proven financial ability or relevant work experience to enable the Board to effectively achieve its objects; and

(b) endeavour to ensure that no more than three of the 12 directors reside outside Canada.

(2) Subsection 10(9) of the Act is amended by adding “and” at the end of paragraph (f), by striking out “and” at the end of paragraph (g) and by repealing paragraph (h).

Coming into Force

Marginal note:Order in council

278. Section 277 comes into force, in accordance with subsection 114(4) of the Canada Pension Plan, on a day to be fixed by order of the Governor in Council.

Division 132000, c. 17; 2001, c. 41, s. 48Proceeds of Crime (Money Laundering) and Terrorist Financing Act

Amendments to the Act

279. Section 11 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act is replaced by the following:

Marginal note:Solicitor-client privilege

11. Nothing in this Act requires a legal counsel to disclose any communication that is subject to solicitor-client privilege.

Marginal note:2004, c. 15, s. 101

280. Subsection 65(3) of the Act is replaced by the following:

Marginal note:Limitation

(3) Any information disclosed by the Centre under subsection (1) may be used by an agency referred to in that subsection only as evidence of a contravention of Part 1, and any information disclosed by the Centre under subsection (2) may be used by an agency or body referred to in subsection (2) only for purposes relating to compliance with Part 1.

Coordinating Amendments

Marginal note:2010, c. 12

281. (1) In this section, “other Act” means the Jobs and Economic Growth Act.

(2) On the first day on which both section 1868 of the other Act and section 279 of this Act are in force, section 11 of the English version of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act is replaced by the following:

Marginal note:Solicitor-client privilege or professional secrecy

11. Nothing in this Act requires a legal counsel to disclose any communication that is subject to solicitor-client privilege or, in Quebec, the professional secrecy of legal counsel.

(3) On the first day on which both paragraph 1882(d) of the other Act and section 280 of this Act are in force, subsection 65(3) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act is replaced by the following:

Marginal note:Limitation

(3) Any information disclosed by the Centre under subsection (1) may be used by an agency referred to in that subsection only as evidence of a contravention of Part 1 or 1.1, and any information disclosed by the Centre under subsection (2) may be used by an agency or body referred to in subsection (2) only for purposes relating to compliance with Part 1 or 1.1.

Division 14Mackenzie Gas Project Impacts Fund Act

Enactment of Act

Marginal note:Enactment

282. The Mackenzie Gas Project Impacts Fund Act, whose text is as follows and whose schedule is set out in the schedule to this Act, is enacted:

An Act to establish the Mackenzie Gas Project Impacts Fund
SHORT TITLE

Marginal note:Short title

1. This Act may be cited as the Mackenzie Gas Project Impacts Fund Act.

INTERPRETATION

Marginal note:Definitions

2. The following definitions apply in this Act.

“Mackenzie gas project”

« projet gazier Mackenzie »

“Mackenzie gas project” means the project proposed by a consortium led by Imperial Oil Resources Ventures Limited that includes the development of the natural gas fields of Niglintgak, Taglu and Parsons Lake, and the construction and operation of

(a) a gathering system related to those fields;

(b) a natural gas liquids pipeline;

(c) the natural gas pipeline that is the subject of the application GH-12004 made to the National Energy Board on October 7, 2004; and

(d) facilities related to the fields, the gathering system or the pipelines.

“regional organization”

« organisation régionale »

“regional organization” means an organization referred to in the schedule.

DESIGNATION OF MINISTER

Marginal note:Power of Governor in Council

3. The Governor in Council may designate a member of the Queen’s Privy Council for Canada to be the Minister for the purpose of this Act.

PURPOSE OF ACT

Marginal note:Purpose

4. The purpose of this Act is to establish the Mackenzie Gas Project Impacts Fund in order to provide for contributions to regional organizations with respect to projects described in section 8.

MACKENZIE GAS PROJECT IMPACTS FUND

Marginal note:Account established

5. There is established in the accounts of Canada an account to be known as the Mackenzie Gas Project Impacts Fund.

Marginal note:Charges

6. On the requisition of the Minister, there is to be paid out of the Consolidated Revenue Fund and charged to the Mackenzie Gas Project Impacts Fund all contributions that are to be paid under section 8.

Marginal note:Interest to be credited to Fund

7. The Minister of Finance must, from the Consolidated Revenue Fund, credit to the Mackenzie Gas Project Impacts Fund interest  —  calculated in the manner and at the rate determined by the Governor in Council  —  on the balance from time to time of that Fund.

Marginal note:Eligible project

8. The Minister may provide contributions to regional organizations with respect to a project if the project

(a) mitigates the existing or anticipated socio-economic impacts on communities in the Northwest Territories arising from the Mackenzie gas project; and

(b) meets the criteria established and made publicly available by the Minister.

Marginal note:Agreement with regional organizations

9. The Minister must, before providing a contribution to a regional organization, enter into an agreement with the organization respecting, among other things,

(a) the manner in which advances will be made in respect of contributions and when those advances will be made;

(b) the terms or conditions on which the contributions will be provided; and

(c) the evaluation of the regional organization’s performance in achieving the objectives associated with the provision of contributions for eligible projects and the evaluation of the results of the projects that are funded.

AMENDMENT OF SCHEDULE

Marginal note:Order in council

10. The Governor in Council may, by order made on the recommendation of the Minister, add or delete the name of any organization to or from the schedule.

PAYMENT OUT OF THE CONSOLIDATED REVENUE FUND

Marginal note:Payment of $500,000,000

11. (1) From the Consolidated Revenue Fund, there may, on the requisition of the Minister of Finance made on the recommendation of the Minister, be credited to the Mackenzie Gas Project Impacts Fund payments not greater than, in the aggregate, $500,000,000.

Marginal note:Condition for recommendation

(2) The Minister may only make the recommendation if the Mackenzie gas project has not been terminated and the Minister is of the opinion that progress is being made on the project.

Consequential Amendments

R.S., c. A-1Access to Information Act

Marginal note:2006, c. 4, s. 210

283. Schedule I to the Access to Information Act is amended by striking out the following under the heading “OTHER GOVERNMENT INSTITUTIONS”:

Corporation for the Mitigation of Mackenzie Gas Project Impacts

Société d’atténuation des répercussions du projet gazier Mackenzie

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

Marginal note:2006, c. 4, s. 211

284. Part I of Schedule III to the Financial Administration Act is amended by striking out the following:

Corporation for the Mitigation of Mackenzie Gas Project Impacts

Société d’atténuation des répercussions du projet gazier Mackenzie

R.S., c. P-21Privacy Act

Marginal note:2006, c. 4, s. 212

285. The schedule to the Privacy Act is amended by striking out the following under the heading “OTHER GOVERNMENT INSTITUTIONS”:

Corporation for the Mitigation of Mackenzie Gas Project Impacts

Société d’atténuation des répercussions du projet gazier Mackenzie

2006, c. 4Budget Implementation Act, 2006

286. Section 209 of the Budget Implementation Act, 2006 is repealed.

Repeal

Marginal note:2006, c. 4, s. 208

287. The Mackenzie Gas Project Impacts Act is repealed.

Division 152006, c. 9, s. 2Conflict of Interest Act

288. (1) Paragraph (e) of the definition “public office holder” in subsection 2(1) of the Conflict of Interest Act is replaced by the following:

(e) a person or a member of a class of persons if the person or class of persons is designated under subsection 62.1(1) or 62.2(1).

(2) Paragraph (f) of the definition “reporting public office holder” in subsection 2(1) of the Act is replaced by the following:

(f) a person or a member of a class of persons if the person or class of persons is designated under subsection 62.1(2) or 62.2(2).

289. The Act is amended by adding the following before section 63:

Marginal note:Minister designating public office holder

62.1 (1) The appropriate minister of the Crown may designate a full-time ministerial appointee as a public office holder for the purpose of paragraph (e) of the definition “public office holder” in subsection 2(1).

Marginal note:Minister designating reporting public office holder

(2) The appropriate minister of the Crown may designate a full-time ministerial appointee who is a public office holder as a reporting public office holder for the purpose of paragraph (f) of the definition “reporting public office holder” in subsection 2(1).

Marginal note:Governor in Council designating public office holder

62.2 (1) The Governor in Council may, by order, designate any person or class of persons as public office holders for the purpose of paragraph (e) of the definition “public office holder” in subsection 2(1).

Marginal note:Governor in Council designating reporting public office holder

(2) The Governor in Council may, by order, designate any person who is a public office holder or any class of persons who are public office holders as reporting public office holders for the purpose of paragraph (f) of the definition “reporting public office holder” in subsection 2(1).

Division 162001, c. 27Immigration and Refugee Protection Act

Amendments to the Act

290. Part 1 of the Immigration and Refugee Protection Act is amended by adding the following after the heading “IMMIGRATION TO CANADA”:

Division 0.1Invitation to Make an Application

Marginal note:Application for permanent residence  — invitation to apply

10.1 (1) A foreign national who seeks to enter or remain in Canada as a member of a class that is referred to in an instruction given under paragraph 10.3(1)(a) may make an application for permanent residence only if the Minister has issued them an invitation to do so, the invitation has not been cancelled under subsection 10.2(5) and the applicable period specified in an instruction given under paragraph 10.3(1)(k) has not expired.

Marginal note:Limitation

(2) An instruction may be given under paragraph 10.3(1)(a) only in respect of a class that is part of the economic class referred to in subsection 12(2).

Marginal note:Expression of interest

(3) A foreign national who wishes to be invited to make an application must submit an expression of interest to the Minister by means of an electronic system in accordance with instructions given under section 10.3 unless the instructions provide that they may do so by other means.

Marginal note:Inadmissible foreign national

(4) A foreign national may not submit an expression of interest if they have been determined to be  —  and continue to be  —  inadmissible for misrepresentation.

Marginal note:New expression of interest

(5) A foreign national who has submitted an expression of interest may not submit another one before the expiry of the period referred to in an instruction given under paragraph 10.3(1)(f).

Marginal note:Change in circumstances

(6) A foreign national who is invited to make an application must, before making the application, advise the Minister of any change in their circumstances that relates to any of the criteria on the basis of which they were invited.

Marginal note:Expression of interest  — processing

10.2 (1) In processing an expression of interest, the Minister

(a) is to determine whether the foreign national is eligible to be invited to make an application by applying the criteria set out in instructions given under paragraph 10.3(1)(e) and is to advise the foreign national of the determination in accordance with instructions given under paragraph 10.3(1)(l); and

(b) subject to subsection (2), is to determine whether, in accordance with instructions given under paragraph 10.3(1)(i), the foreign national occupies the rank required to be invited to make an application and, if so, is to issue the invitation in accordance with instructions given under paragraph 10.3(1)(l).

Marginal note:Limitation

(2) A determination under paragraph (1)(b) may be made only if the number of invitations that have been issued is less than the number provided for in an instruction given under paragraph 10.3(1)(j).

Marginal note:Electronic system

(3) The Minister is to use an electronic system to carry out any applicable instruction given under subsection 10.3(1) and to make a determination under paragraph (1)(a) or (b).

Marginal note:Compliance with instructions

(4) An expression of interest must be processed in compliance with any applicable instruction.

Marginal note:Cancellation of invitation

(5) The Minister may cancel an invitation to make an application if

(a) the invitation was issued in error; or

(b) a change in the foreign national’s circumstances results in their no longer meeting the criteria on the basis of which they were invited.

Marginal note:Instructions

10.3 (1) The Minister may give instructions governing any matter relating to invitations to make an application referred to in subsection 10.1(1), including instructions respecting

(a) the classes in respect of which subsection 10.1(1) applies;

(b) the electronic system referred to in subsections 10.1(3) and 10.2(3);

(c) the submission and processing of an expression of interest by means of the electronic system;

(d) the circumstances in which an expression of interest may be submitted by means other than the electronic system and respecting those other means;

(e) the criteria that a foreign national must meet to be eligible to be invited to make an application;

(f) the period during which a foreign national remains eligible to be invited to make an application;

(g) the personal information that the Minister may disclose under section 10.4 and the entities to which that information may be disclosed;

(h) the basis on which an eligible foreign national may be ranked relative to other eligible foreign nationals;

(i) the rank an eligible foreign national must occupy to be invited to make an application;

(j) the number of invitations that may be issued within a specified period, including in respect of a class referred to in an instruction given under paragraph (a);

(k) the period within which an application must be made once an invitation has been issued; and

(l) the means by which a foreign national is to be advised of any matter relating to their expression of interest, including an invitation to make an application.

Marginal note:Clarification

(2) For greater certainty, an instruction given under paragraph (1)(j) may provide that the number of invitations that may be issued in any specified period in respect of a class be zero.

Marginal note:Application of instructions

(3) An instruction given under any of paragraphs (1)(a), (b) and (f) to (l) applies in respect of an expression of interest that is submitted before the day on which the instruction takes effect, unless the instruction provides otherwise.

Marginal note:Publication

(4) Instructions given under subsection (1) must be published on the Department of Citizenship and Immigration’s Internet site. Instructions given under any of paragraphs (1)(a), (d) to (g), (k) and (l) must also be published in the Canada Gazette.

Marginal note:Criteria provided for under other Divisions

(5) For greater certainty, an instruction given under subsection (1) may provide for criteria that are more stringent than the criteria or requirements provided for in or under any other Division of this Act regarding applications for permanent residence.

Marginal note:Disclosure of information

10.4 For the purpose of facilitating the selection of a foreign national as a member of the economic class or as a temporary resident, the Minister may disclose personal information provided to him or her by the foreign national under section 10.1 and referred to in an instruction given under paragraph 10.3(1)(g) to an entity that is referred to in an instruction given under that paragraph.

291. Subsection 25(1.2) of the Act is amended by adding the following after paragraph (a):

(a.1) the request is for an exemption from any of the criteria or obligations of Division 0.1;

Marginal note:2011, c. 8, s. 1

292. (1) Subsection 91(1) of the Act is replaced by the following:

Marginal note:Representation or advice for consideration

91. (1) Subject to this section, no person shall knowingly, directly or indirectly, represent or advise a person for consideration  —  or offer to do so  —  in connection with the submission of an expression of interest under subsection 10.1(3) or a proceeding or application under this Act.

Marginal note:2011, c. 8, s. 1

(2) Subsections 91(3) to (5) of the Act are replaced by the following:

Marginal note:Students-at-law

(3) A student-at-law does not contravene subsection (1) by offering or providing representation or advice to a person if the student-at-law is acting under the supervision of a person mentioned in paragraph (2)(a) who is representing or advising the person  —  or offering to do so  —  in connection with the submission of an expression of interest under subsection 10.1(3) or a proceeding or application under this Act.

Marginal note:Agreement or arrangement with Her Majesty

(4) An entity, including a person acting on its behalf, that offers or provides services to assist persons in connection with the submission of an expression of interest under subsection 10.1(3) or an application under this Act, including for a permanent or temporary resident visa, travel documents or a work or study permit, does not contravene subsection (1) if it is acting in accordance with an agreement or arrangement between that entity and Her Majesty in right of Canada that authorizes it to provide those services.

Marginal note:Designation by Minister

(5) The Minister may, by regulation, designate a body whose members in good standing may represent or advise a person for consideration  —  or offer to do so  —  in connection with the submission of an expression of interest under subsection 10.1(3) or a proceeding or application under this Act.

Marginal note:2011, c. 8, s. 1

(3) Paragraph 91(7)(b) of the English version of the Act is replaced by the following:

(b) providing that members or classes of members of a body that has ceased to be a designated body under that subsection continue for a specified period to be authorized to represent or advise a person for consideration —  or offer to do so  —  in connection with the submission of an expression of interest under subsection 10.1(3) or a proceeding or application under this Act without contravening subsection (1).

Coming into Force

Marginal note:Order in council

293. The provisions of this Division come into force on a day or days to be fixed by order of the Governor in Council.

Division 17Public Service Labour Relations

2003, c. 22, s. 2Public Service Labour Relations Act

Amendments to the Act

294. (1) The definition “essential services agreement” in subsection 4(1) of the Public Service Labour Relations Act is repealed.

(2) The definition “essential service” in subsection 4(1) of the Act is replaced by the following:

“essential service”

« services essentiels »

“essential service” means a service, facility or activity of the Government of Canada that has been determined under subsection 119(1) to be essential.

(3) Subsection 4(2) of the Act is repealed.

295. Section 13 of the Act is replaced by the following:

Marginal note:Mandate

13. The Board’s mandate is to provide adjudication services and mediation services in accordance with this Act.

296. Section 16 of the Act is repealed.

297. (1) Paragraph 39(h) of the Act is repealed.

(2) Paragraph 39(j) of the Act is replaced by the following:

(j) the specification of the times within which notices, other than those referred to in subsections 124(1) and (2), and other documents are to be sent or given under this Part, the persons to whom they are to be sent or given and when they are deemed to have been sent, given or received;

298. Section 53 of the Act and the heading before it are repealed.

299. Section 67 of the Act is amended by adding “and” at the end of paragraph (c), by striking out “and” at the end of paragraph (d) and by repealing paragraph (e).

300. Subsections 79(1) and (2) of the Act are replaced by the following:

Marginal note:Mergers, amalgamations and transfers of jurisdiction

79. (1) If, by reason of a merger or an amalgamation of employee organizations or a transfer of jurisdiction among employee organizations, other than as a result of a revocation of certification, an employee organization succeeds another one that, at the time of the merger, amalgamation or transfer of jurisdiction, is a bargaining agent, the successor is deemed to have acquired the rights, privileges and duties of its predecessor, whether under a collective agreement, an arbitral award or otherwise.

Marginal note:Board to determine questions

(2) If any question arises in respect of the merger, amalgamation or transfer of jurisdiction concerning the rights, privileges and duties of an employee organization under this Part or under a collective agreement or an arbitral award in respect of a bargaining unit or an employee in a bargaining unit, the Board, on application by the employer or any person or employee organization concerned, must determine what rights, privileges and duties have been acquired or are retained.

301. Subsection 101(1) of the Act is amended by adding “and” at the end of paragraph (a), by striking out “and” at the end of paragraph (b) and by repealing paragraph (c).

302. The heading “Choice of Process for Dispute Resolution” before section 103 and sections 103 and 104 of the Act are replaced by the following:

Process for Dispute Resolution

Marginal note:Conciliation

103. Subject to section 104, the process for the resolution of disputes between an employer and the bargaining agent for a bargaining unit is conciliation.

Marginal note:Arbitration  — agreement

104. (1) The employer and the bargaining agent for a bargaining unit may, by agreement in writing, choose arbitration as the process for the resolution of disputes. If the employer is a separate agency, it may enter into such an agreement only with the approval of the President of the Treasury Board.

Marginal note:Arbitration  — essential services

(2) If, on the day on which notice to bargain collectively may be given, 80% or more of the positions in the bargaining unit have been designated under section 120, the process for the resolution of disputes between the employer and the bargaining agent is arbitration.

303. Subsections 105(1) and (2) of the Act are replaced by the following:

Marginal note:Notice to bargain collectively

105. (1) After the Board has certified an employee organization as the bargaining agent for a bargaining unit, the bargaining agent or the employer may, by notice in writing, require the other to commence bargaining collectively with a view to entering into, renewing or revising a collective agreement.

Marginal note:When notice may be given

(2) Subject to subsection (2.1), the notice to bargain collectively may be given

(a) at any time, if no collective agreement or arbitral award is in force and no request for arbitration has been made by either of the parties in accordance with this Part; or

(b) if a collective agreement or arbitral award is in force, within the 12 months before it ceases to be in force.

Marginal note:Exception

(2.1) In the case of the bargaining agent for a bargaining unit that has never been bound by a collective agreement or arbitral award to which the employer is a party, the notice to bargain collectively may not be given until the expiry of 60 days after the day on which the employer gives to the bargaining agent the notice required by section 121.

304. (1) The portion of section 107 of the Act before paragraph (a) is replaced by the following:

Marginal note:Duty to observe terms and conditions

107. Unless the parties otherwise agree, and subject to subsection 125(1), after the notice to bargain collectively is given, each term and condition of employment applicable to the employees in the bargaining unit to which the notice relates that may be included in a collective agreement, and that is in force on the day on which the notice is given, is continued in force and must be observed by the employer, the bargaining agent for the bargaining unit and the employees in the bargaining unit until a collective agreement is entered into in respect of that term or condition or

(2) Paragraph 107(a) of the French version of the Act is replaced by the following:

a) dans le cas où le mode de règlement des différends est l’arbitrage, jusqu’à ce que la décision arbitrale soit rendue;

305. Sections 119 to 134 of the Act are replaced by the following:

Marginal note:Employer’s right to determine essential service

119. (1) The employer has the exclusive right to determine whether any service, facility or activity of the Government of Canada is essential because it is or will be necessary for the safety or security of the public or a segment of the public.

Marginal note:Employer’s right

(2) Nothing in this Act is to be construed as limiting the employer’s right under subsection (1).

Marginal note:Employer’s right to designate positions

120. (1) The employer has the exclusive right to designate the positions in a bargaining unit that include duties that, in whole or in part, are or will be necessary for the employer to provide essential services, and the employer may exercise that right at any time.

Marginal note:Employer’s right

(2) Nothing in this Act is to be construed as limiting the employer’s right under subsection (1).

Marginal note:Notice to bargaining agent

121. (1) The employer must notify in writing a bargaining agent that represents a bargaining unit that the employer either has, or has not, under section 120 designated positions in the bargaining unit.

Marginal note:Identification of designated positions

(2) If the notice is to the effect that the employer has designated positions, the notice must identify the designated positions.

Marginal note:When notice must be given

(3) The notice must be given not later than three months before the first day on which a notice to bargain collectively may be given. However, in the case of an employee organization that is certified as the bargaining agent for a bargaining unit after the day on which this section comes into force, the notice must be given within 60 days after the certification.

Marginal note:Notice to Board

(4) The employer must notify the Board of the date the notice was given under subsection (1) to the bargaining agent.

Marginal note:Consultations

122. (1) If the notice under subsection 121(1) is to the effect that the employer has designated positions, the employer must, after giving the notice, without delay, begin consultations with the bargaining agent about the designated positions that are identified in the notice. Those consultations must end 60 days after the day on which the notice is given.

Marginal note:Employer’s determination

(2) Within the 30 days that follow the end of the 60 days, the employer must notify the bargaining agent of the positions in the bargaining unit that the employer has or will designate under section 120.

Marginal note:Replacement positions

123. If a position that is designated by the employer under section 120 becomes vacant, the employer may identify a position of the same type as a replacement position. If the employer does so, the employer must provide the bargaining agent with a notice of replacement.

Marginal note:Notification of employees

124. (1) As soon as feasible after designating a position under section 120, the employer must provide the employee who occupies the position with a notice informing the employee that they occupy such a position.

Marginal note:Notification of change

(2) A notice given under this section remains valid as long as the employee continues to occupy the position unless the employer notifies the employee that the position occupied by them is no longer necessary for the employer to provide essential services.

Marginal note:Duty to observe terms and conditions

125. (1) Unless the parties otherwise agree, every term and condition of employment applicable to employees in a bargaining unit in respect of which a notice to bargain collectively is given that may be included in a collective agreement and that is in force on the day on which the notice is given remains in force in respect of any employee who occupies a position that is designated under section 120 and must be observed by the employer, the bargaining agent for the bargaining unit and the employee until a collective agreement is entered into.

Marginal note:Saving

(2) Nothing in this Act is to be construed as limiting the employer’s right to require that an employee who occupies a position that is designated under section 120 perform all of the duties assigned to that position and be available during his or her off-duty hours to report to work without delay to perform those duties if required to do so by the employer.

306. Paragraph 135(a) of the French version of the Act is replaced by the following:

a) d’une part, le mode de règlement des différends applicable à l’unité de négociation est l’arbitrage;

307. (1) Section 148 of the Act is replaced by the following:

Making of Arbitral Award

Marginal note:Preponderant factors

148. (1) In determining whether compensation levels and other terms and conditions represent a prudent use of public funds and are sufficient to allow the employer to meet its operational needs, the arbitration board is to be guided by and to give preponderance to the following factors in the conduct of its proceedings and in making an arbitral award:

(a) the necessity of attracting competent persons to, and retaining them in, the public service in order to meet the needs of Canadians; and

(b) Canada’s fiscal circumstances relative to its stated budgetary policies.

Marginal note:Other factors

(2) If relevant to the making of a determination under subsection (1), the arbitration board may take any of the following factors into account:

(a) relationships with compensation and other terms and conditions of employment as between different classification levels within an occupation and as between occupations in the public service;

(b) the compensation and other terms and conditions of employment relative to employees in similar occupations in the private and public sectors, including any geographical, industrial or other variations that the arbitration board considers relevant;

(c) compensation and other terms and conditions of employment that are reasonable in relation to the qualifications required, the work performed, the responsibility assumed and the nature of the services rendered; and

(d) the state of the Canadian economy.

(2) Section 148 of the Act is amended by adding the following after subsection (2):

Marginal note:Public Sector Equitable Compensation Act

(3) Nothing in subsections (1) and (2) precludes the operation of sections 17 to 19 of the Public Sector Equitable Compensation Act.

308. The heading before section 149 of the Act is repealed.

309. Subsection 149(1) of the Act is replaced by the following:

Marginal note:Making of arbitral award

149. (1) The arbitration board must make an arbitral award as soon as feasible in respect of all the matters in dispute that are referred to it and set out in the award the reasons for its decision in respect of each of those matters.

Marginal note:Terms of employment to be considered

(1.1) The arbitration board must not make an arbitral award without having taken into account all terms and conditions of employment of, and benefits provided to, the employees in the bargaining unit to which the award relates, including salaries, bonuses, allowances, vacation pay, employer contributions to pension funds or plans and all forms of health plans and dental insurance plans.

310. The Act is amended by adding the following after section 158:

Review

Marginal note:Review

158.1 (1) Within seven days after the day on which an arbitral award is made, the Chairperson may direct the arbitration board to review the arbitral award, or any part of it, if in the Chairperson’s opinion, the arbitral award, or any part of it, does not represent a reasonable application of the factors referred to in section 148 based on a full consideration of the written submissions provided to the arbitration board.

Marginal note:Review  — application

(2) On application by either party to an arbitral award, made within seven days after the day on which the arbitral award is made, the Chairperson may, within seven days after the day on which the application is made, direct the arbitration board to review the arbitral award, or any part of it, if in the Chairperson’s opinion, the arbitral award, or any part of it, does not represent a reasonable application of the factors referred to in section 148 based on a full consideration of the written submissions provided to the arbitration board.

Marginal note:Duty to confirm or amend

(3) Within 30 days after the day on which the Chairperson directs it to review the arbitral award, or any part of it, the arbitration board must either confirm the award or amend it and provide the Chairperson with reasons in writing for doing so. If the arbitral award is amended, the arbitration board must also provide the Chairperson with a copy of the amended arbitral award.

Marginal note:Notice

(4) The Chairperson must, without delay, inform the parties of the arbitration board’s decision and provide them with a copy of that board’s reasons in writing. If the arbitral award is amended, the Chairperson must also provide the parties with a copy of the amended arbitral award.

Marginal note:Restriction

(5) For greater certainty, the arbitration board’s power to amend the arbitral award is restricted to amending it only in relation to the matters in dispute that were originally referred to it.

311. Paragraph 160(a) of the French version of the Act is replaced by the following:

a) d’une part, le mode de règlement des différends applicable à l’unité de négociation est la conciliation;

312. Subsection 164(1) of the Act is replaced by the following:

Marginal note:Constitution

164. (1) The public interest commission consists of either a single member appointed in accordance with section 165 or, subject to subsection (2), three members, appointed in accordance with section 167.

313. Sections 165 and 166 of the Act are replaced by the following:

Marginal note:Commission with single member

165. (1) If the public interest commission is to consist of a single member, the Chairperson must submit to the Minister the name of a person jointly recommended by the bargaining agent and the employer. If no person is so recommended, the Chairperson may, at his or her discretion, recommend the appointment of a particular person.

Marginal note:Appointment

(2) After receiving the recommendation, the Minister must, without delay, appoint the person recommended.

314. Subsections 167(3) to (5) of the Act are replaced by the following:

Marginal note:Appointment of chairperson nominated by parties

(3) Within five days after the day on which the second member is appointed, the two members must nominate a person to be the chairperson and third member of the public interest commission, and the Chairperson must recommend to the Minister the appointment of that person. The Minister must appoint the person, without delay, as chairperson and third member of the commission.

Marginal note:Failure to nominate

(4) If the two members fail to make a nomination under subsection (3), the Chairperson must, without delay, recommend to the Minister the appointment of a particular person as the chairperson and third member of the public interest commission.

Marginal note:Appointment

(5) After receiving the recommendation, the Minister must, without delay, appoint the person recommended as the chairperson and third member of the public interest commission.

315. Subsection 170(1) of the Act is replaced by the following:

Marginal note:Death, incapacity or resignation of single member

170. (1) In the event of the death, incapacity or resignation of the member of a public interest commission that consists of a single member before the commission makes a report to the Chairperson, the Chairperson must recommend to the Minister the appointment of another person under section 165 and the Minister must, without delay, appoint that person. That person must recommence the conciliation proceedings from the beginning.

316. (1) Section 175 of the Act is replaced by the following:

Marginal note:Preponderant factors

175. (1) In determining whether compensation levels and other terms and conditions represent a prudent use of public funds and are sufficient to allow the employer to meet its operational needs, the public interest commission is to be guided by and to give preponderance to the following factors in the conduct of its proceedings and in making a report to the Chairperson:

(a) the necessity of attracting competent persons to, and retaining them in, the public service in order to meet the needs of Canadians; and

(b) Canada’s fiscal circumstances relative to its stated budgetary policies.

Marginal note:Other factors

(2) If relevant to the making of a determination under subsection (1), the public interest commission may take any of the following factors into account:

(a) relationships with compensation and other terms and conditions of employment as between different classification levels within an occupation and as between occupations in the public service;

(b) the compensation and other terms and conditions of employment relative to employees in similar occupations in the private and public sectors, including any geographical, industrial or other variations that the public interest commission considers relevant;

(c) compensation and other terms and conditions of employment that are reasonable in relation to the qualifications required, the work performed, the responsibility assumed and the nature of the services rendered; and

(d) the state of the Canadian economy.

(2) Section 175 of the Act is amended by adding the following after subsection (2):

Marginal note:Public Sector Equitable Compensation Act

(3) Nothing in subsections (1) and (2) precludes the operation of sections 20 and 21 of the Public Sector Equitable Compensation Act.

317. Section 176 of the Act is amended by adding the following after subsection (1):

Marginal note:Reasons

(1.1) The public interest commission must set out in the report the reasons for each of its recommendations.

Marginal note:Terms of employment to be considered

(1.2) The public interest commission must not submit its report without having taken into account all terms and conditions of employment of, and benefits provided to, the employees in the bargaining unit to which the report relates, including salaries, bonuses, allowances, vacation pay, employer contributions to pension funds or plans and all forms of health plans and dental insurance plans.

318. Section 179 of the Act is replaced by the following:

Marginal note:Reconsideration of matters contained in report

179. The Chairperson may direct the public interest commission to reconsider and clarify or amplify its report or any part of it if in his or her opinion section 175 has not been properly applied.

319. (1) Subsection 182(1) of the Act is replaced by the following:

Marginal note:Alternate dispute resolution process

182. (1) Despite any other provision of this Part, the employer and the bargaining agent for a bargaining unit may, at any time in the negotiation of a collective agreement, agree to refer any term or condition of employment of employees in the bargaining unit that may be included in a collective agreement to any eligible person for final and binding determination by whatever process the employer and the bargaining agent agree to. If the employer is a separate agency, it may enter into such an agreement to refer a term or condition for final and binding determination only with the approval of the President of the Treasury Board.

(2) Subsection 182(2) of the French version of the Act is replaced by the following:

Marginal note:Maintien du mode normal de règlement

(2) Le mode de règlement des différends applicable à toute condition d’emploi non renvoyée à la personne en question pour décision définitive et sans appel demeure la conciliation.

320. Paragraph 190(1)(f) of the Act is replaced by the following:

(f) the employer, a bargaining agent or an employee has failed to comply with subsection 125(1) (duty to observe terms and conditions); or

321. Paragraph 192(1)(a) of the Act is replaced by the following:

(a) if the employer has failed to comply with section 107 or subsection 125(1), an order requiring the employer to pay to any employee compensation that is not more than the amount that, in the Board’s opinion, is equivalent to the remuneration that would, but for that failure, have been paid by the employer to the employee;

322. (1) Paragraph 194(1)(e) of the French version of the Act is replaced by the following:

e) si le mode de règlement des différends applicable à l’égard de l’unité de négociation est l’arbitrage;

(2) Paragraphs 194(1)(f) to (j) of the Act are replaced by the following:

(f) the process for resolution of a dispute applicable to the bargaining unit is conciliation and a notice has been given under section 121 to the effect that the employer has, under section 120, designated positions in the bargaining unit and the employer has not notified the bargaining agent under subsection 122(2);

(3) Paragraph 194(1)(k) of the French version of the Act is replaced by the following:

k) si le mode de règlement des différends applicable à l’égard de l’unité de négociation est la conciliation et qu’aucune commission de l’intérêt public n’a été établie pour aider l’employeur et l’organisation syndicale, à titre d’agent négociateur de l’unité de négociation, à conclure ou à réviser la convention collective, sauf si l’organisation syndicale a été avisée conformément au paragraphe 162(3) qu’une telle commission ne serait pas établie;

(4) Subsection 194(2) of the Act is replaced by the following:

Marginal note:Essential services

(2) No employee organization shall declare or authorize a strike the effect of which is or would be to involve the participation of any employee who occupies a position that is designated under section 120, and no officer or representative of an employee organization shall counsel or procure the declaration or authorization of a strike in respect of a bargaining unit or the participation of those employees in a strike.

323. (1) Paragraph 196(e) of the French version of the Act is replaced by the following:

e) s’il appartient à une unité de négociation pour laquelle le mode de règlement des différends est l’arbitrage;

(2) Paragraphs 196(f) to (k) of the Act are replaced by the following:

(f) is included in a bargaining unit for which the process for resolution of a dispute is conciliation and in respect of which a notice has been given under section 121 to the effect that the employer has, under section 120, designated positions in the bargaining unit and the employer has not notified the bargaining agent under subsection 122(2);

(g) occupies a position that has been designated under section 120;

(3) Paragraph 196(l) of the French version of the Act is replaced by the following:

l) s’il appartient à une unité de négociation pour laquelle le mode de règlement des différends est la conciliation et à l’égard de laquelle aucune commission de l’intérêt public n’a été établie pour aider l’employeur et l’agent négociateur de l’unité de négociation à conclure ou à réviser la convention collective, sauf si l’agent négociateur a été avisé conformément au paragraphe 162(3) qu’aucune commission ne serait établie;

324. Section 199 of the Act is replaced by the following:

Marginal note:Obstruction

199. No person shall impede or prevent or attempt to impede or prevent an employee from entering or leaving the employee’s place of work if the employee occupies a position that is designated under section 120.

325. (1) Subsection 208(2) of the Act is replaced by the following:

Marginal note:Limitation

(2) An employee may not present an individual grievance in respect of which an administrative procedure for redress is provided under any Act of Parliament.

(2) Subsection 208(4) of the Act is replaced by the following:

Marginal note:Agreement required

(4) Unless the grievance is in respect of a discriminatory practice set out in section 7, 8, 10 or 14 of the Canadian Human Rights Act, an employee who is included in a bargaining unit may present an individual grievance only if the employee has the approval of and is represented by the bargaining agent for the bargaining unit.

(3) Section 208 of the Act is amended by adding the following after subsection (7):

Marginal note:Discriminatory practices

(8) An individual grievance in respect of a discriminatory practice set out in section 7, 8, 10 or 14 of the Canadian Human Rights Act must be presented at the first level in the grievance process within one year after the last of the acts or omissions that gave rise to the grievance, or any longer period that the Board considers appropriate in the circumstances.

Marginal note:Dismissal

(9) An individual grievance may be dismissed at any level of the grievance process if the grievance is considered to be trivial, frivolous, vexatious or made in bad faith. If it is dismissed, the employee must be informed in writing of the dismissal and the reasons for it.

326. (1) Subsection 209(1) of the Act is amended by striking out “or” at the end of paragraph (c) and by adding the following after that paragraph:

(c.1) a discriminatory practice set out in section 7, 8, 10 or 14 of the Canadian Human Rights Act; or

(2) Subsection 209(2) of the Act is replaced by the following:

Marginal note:Agreement required

(2) Unless the grievance is in respect of a discriminatory practice set out in section 7, 8, 10 or 14 of the Canadian Human Rights Act, an employee who is included in a bargaining unit may refer an individual grievance to adjudication only if the bargaining agent for the bargaining unit has agreed to represent the employee in the adjudication proceedings.

327. Section 210 of the Act is repealed.

328. Section 211 of the Act is renumbered as subsection 211(1) and is amended by adding the following:

Marginal note:Discriminatory practice

(2) Subsection (1) does not apply in respect of the referral to adjudication of an individual grievance in respect of a discriminatory practice set out in section 7, 8, 10 or 14 of the Canadian Human Rights Act.

329. Subsection 215(4) of the Act is replaced by the following:

Marginal note:Limitation

(4) A bargaining agent may not present a group grievance in respect of which an administrative procedure for redress is provided under any Act of Parliament.

330. Section 217 of the Act is repealed.



331. Subsections 220(1) and (2) of the Act are replaced by the following:

Marginal note:Right of employer and bargaining agent

220. (1) If the employer and a bargaining agent are bound by an arbitral award or have entered into a collective agreement and the employer or the bargaining agent seeks to enforce an obligation that is alleged to arise out of the award or agreement, other than an obligation the enforcement of which may be the subject of a grievance of an employee in the bargaining unit to which the agreement or award applies, either of them may present a policy grievance to the other.

Marginal note:Limitation

(2) Neither the employer nor a bargaining agent may present a policy grievance in respect of which an administrative procedure for redress is provided under any other Act of Parliament.

332. Section 222 of the Act is repealed.

333. (1) Paragraph 226(1)(h) of the Act is replaced by the following:

(h) give relief in accordance with any of paragraphs 53(2)(b) to (e) or subsection 53(3) of the Canadian Human Rights Act;

(2) Paragraph 226(1)(j) of the Act is replaced by the following:

(j) summarily dismiss grievances that in the adjudicator’s opinion are trivial, frivolous, vexatious or made in bad faith.

334. Section 232 of the Act is replaced by the following:

Marginal note:Decision in respect of policy grievances

232. An adjudicator’s decision in respect of a policy grievance is limited to one or more of the following:

(a) declaring the correct interpretation of a collective agreement or an arbitral award;

(b) declaring that the collective agreement or arbitral award has been contravened; and

(c) requiring the employer or bargaining agent, as the case may be, to interpret the collective agreement or arbitral award in a specified manner, without giving it retroactive effect.

335. Section 235 of the Act is replaced by the following:

Marginal note:Individual grievance  — paragraph 209(1)(a)

235. (1) Subject to subsection (3), if an individual grievance that is related to matters referred to in paragraph 209(1)(a) is referred to adjudication by an aggrieved employee, the expenses of the adjudication are to be borne in equal parts by the employer and the bargaining agent that represents the aggrieved employee in the adjudication proceedings.

Marginal note:Paragraph 209(1)(b) or (c)

(2) If an individual grievance that is related to matters referred to in paragraph 209(1)(b) or (c) is referred to adjudication by an aggrieved employee who is included in a bargaining unit, the expenses of the adjudication are to be borne in equal parts by the bargaining agent and the deputy head responsible for the portion of the public service that employs the aggrieved employee in the adjudication proceedings.

Marginal note:Paragraph 209(1)(a) and paragraph 209(1)(b) or (c)

(3) If an individual grievance that is related to matters referred to in paragraph 209(1)(a) and matters referred to in paragraph 209(1)(b) or (c) or to matters in both of those paragraphs is referred to adjudication by an aggrieved employee, the expenses of the adjudication are to be borne in equal parts by the bargaining agent and the deputy head responsible for the portion of the public service that employs the aggrieved employee in the adjudication proceedings.

Marginal note:Paragraph 209(1)(c.1)

(4) If an individual grievance that is related to matters referred to in paragraph 209(1)(c.1) is referred to adjudication by an aggrieved employee who is included in a bargaining unit, the expenses of the adjudication are to be borne by the Board.

Marginal note:Paragraph 209(1)(d)

(5) If an individual grievance that is related to matters referred to in paragraph 209(1)(d) is referred to adjudication by an aggrieved employee who is included in a bargaining unit, the expenses of the adjudication are to be borne in equal parts by the employer and the bargaining agent that represents the aggrieved employee in the adjudication proceedings.

Marginal note:Paragraph 209(1)(b), (c), (c.1) or (d)

(6) If an individual grievance that is related to matters referred to in paragraph 209(1)(b), (c), (c.1) or (d) is referred to adjudication by an aggrieved employee who is not included in a bargaining unit, the expenses of the adjudication are to be borne by the Board.

Marginal note:Recovery

(7) Any amount that by this section is payable by a bargaining agent may be recovered as a debt due to Her Majesty in right of Canada. The bargaining agent is deemed to be a person for the purposes of this subsection.

Marginal note:Determination by Chairperson

(8) For the purpose of this section, the expenses of the adjudication are determined by the Chairperson.

Marginal note:Group grievance

235.1 (1) If a group grievance is referred to adjudication, the expenses of the adjudication are to be borne in equal parts by the employer and the bargaining agent that represents the aggrieved employees in the adjudication proceedings.

Marginal note:Recovery

(2) Any amount that by subsection (1) is payable by a bargaining agent may be recovered as a debt due to Her Majesty in right of Canada. The bargaining agent is deemed to be a person for the purposes of this subsection.

Marginal note:Determination by Chairperson

(3) For the purpose of this section, the expenses of the adjudication are determined by the Chairperson.

Marginal note:Policy grievance

235.2 (1) If a policy grievance is referred to adjudication, the expenses of the adjudication are to be borne in equal parts by the employer and the bargaining agent to the adjudication proceedings.

Marginal note:Recovery

(2) Any amount that by subsection (1) is payable by a bargaining agent may be recovered as a debt due to Her Majesty in right of Canada. The bargaining agent is deemed to be a person for the purposes of this subsection.

Marginal note:Determination by Chairperson

(3) For the purpose of this section, the expenses of the adjudication are determined by the Chairperson.

336. (1) Subsection 237(1) of the Act is amended by adding “and” at the end of paragraph (g), by striking out “and” at the end of paragraph (h) and by repealing paragraph (i).

(2) Section 237 of the Act is amended by adding the following after subsection (1):

Marginal note:Extensions

(1.1) Regulations made under paragraph (1)(d), (f) or (h) may provide for extensions of time only in circumstances that the Board considers to be exceptional.

337. Subsection 247(1) of the Act is replaced by the following:

Marginal note:Remuneration and expenses

247. (1) Members of arbitration boards, mediators, adjudicators and persons seized of referrals under subsection 182(1) are entitled to be paid the remuneration and expenses that may be fixed by the Governor in Council.

Transitional Provisions

Marginal note:Definitions

338. (1) The following definitions apply in this section.

“commencement day”

« date de référence »

“commencement day” means the day on which this Act receives royal assent.

“the Act”

« Loi »

“the Act” means the Public Service Labour Relations Act.

Marginal note:Words and expressions

(2) Unless the context otherwise requires, words and expressions used in this section have the same meaning as in the Act.

Marginal note:Application of provisions enacted by this Act

(3) Subject to subsections (4) to (7), the provisions of the Act, as enacted by sections 294 to 306, subsection 307(1), sections 308 to 314, subsection 316(1) and sections 317 to 324 also apply in respect of the following bargaining units:

(a) a bargaining unit in respect of which a notice to commence bargaining collectively with a view to entering into, renewing or revising a collective agreement has been given before the commencement day;

(b) a bargaining unit that is bound by a collective agreement or arbitral award that is in force on the commencement day and that expires on that day or at any time after that day, and in respect of which no notice to bargain collectively has been given before the commencement day; and

(c) a bargaining unit in respect of which no notice to bargain collectively for the purpose of entering into a first collective agreement has been given before the commencement day.

Marginal note:Arbitration board established

(4) The provisions of the Act, as they read immediately before the commencement day, continue to apply in respect of a bargaining unit that is referred to in paragraph (3)(a) until an arbitral award is made in respect of the bargaining unit if, before the commencement day,

(a) a request for arbitration was made by the employer or the bargaining agent for the bargaining unit; and

(b) the Chairperson had notified the parties of the establishment of an arbitration board.

Marginal note:Public interest commission established

(5) The provisions of the Act, as they read immediately before the commencement day, continue to apply in respect of a bargaining unit that is referred to in paragraph (3)(a) until a collective agreement is entered into by parties if, before the commencement day,

(a) a request for conciliation was made by the employer or the bargaining agent for the bargaining unit; and

(b) the Chairperson had notified the parties of the establishment of a public interest commission.

Marginal note:No essential services agreement entered

(6) If, before the commencement day, arbitration or conciliation has been chosen by the bargaining agent representing a bargaining unit that is referred to in paragraph (3)(a) or (b) as the process for the resolution of disputes to which it may be a party and if, before that day, no essential services agreement has been entered into by the employer and the bargaining agent in relation to that bargaining unit, then,

(a) the process for the resolution of disputes is conciliation; and

(b) despite subsection 121(3) of the Act, as enacted by section 305, the notice that is referred to in subsection 121(1) of the Act, as enacted by section 305, must be given not later than 12 months after the commencement day.

Marginal note:Essential services agreement entered into

(7) If, before the commencement day, arbitration or conciliation has been chosen by the bargaining agent representing a bargaining unit that is referred to in paragraph (3)(a) or (b) as the process for the resolution of disputes to which it may be a party and if, before that day, an essential services agreement has been entered into by the employer and the bargaining agent in relation to that bargaining unit, then, the process for the resolution of disputes is

(a) arbitration, if 80% or more of the positions in the bargaining unit were, immediately before the commencement day, necessary for the employer to provide an essential service; and

(b) conciliation, if less than 80% of the positions in the bargaining unit were, immediately before the commencement day, necessary for the employer to provide an essential service.

Marginal note:Application of subsection 105(2)

(8) Subsection 105(2) of the Act, as that subsection read immediately before the commencement day, continues to apply in respect of a bargaining unit referred to in paragraph (3)(b) until an arbitral award is made or a collective agreement is entered into in respect of a bargaining unit.

Marginal note:Positions  — essential services agreement

(9) If a bargaining unit is bound by an essential service agreement immediately before the commencement day, every position that is identified in the agreement as being necessary for the employer to provide essential services is deemed to be a position designated by the employer under section 120 of the Act, as enacted by section 305. However, subsection 124(1) of the Act, as enacted by section 305, does not apply in respect of any of those positions.

Marginal note:Grievance

339. The provisions of the Public Service Labour Relations Act, as it read immediately before the day on which sections 325 to 336 come into force, continue to apply in respect of every grievance presented under Part 2 of that Act before that day.

R.S., c. H-6Canadian Human Rights Act

Amendments to the Act

340. Section 40.1 of the Canadian Human Rights Act is amended by adding the following after subsection (2):

Marginal note:Public Service Labour Relations Act

(3) A complaint must not be dealt with by the Commission under section 40 if the complaint is made by an employee, as defined in subsection 206(1) of the Public Service Labour Relations Act, against their employer, as defined in subsection 2(1) of that Act and it alleges that the employer has engaged in a discriminatory practice set out in section 7, 8, 10 or 14.

Marginal note:Public Service Employment Act

(4) A complaint must not be dealt with by the Commission under section 40 if the complaint is made by a person against the Public Service Commission or a deputy head as defined in subsection 2(1) of the Public Service Employment Act and it alleges that a discriminatory practice set out in section 7, 8, 10 or 14 has been engaged in in relation to

(a) an appointment or proposed appointment in an internal appointment process under that Act;

(b) the revocation of an appointment under that Act; or

(c) the laying off of employees under that Act.

Transitional Provision

Marginal note:Complaints

341. The provisions of the Canadian Human Rights Act, as that Act read immediately before the day on which section 340 comes into force, continue to apply in respect of every complaint filed with or initiated by the Canadian Human Rights Commission before that day.

2003, c. 22, ss. 12 and 13Public Service Employment Act

Amendments to the Act

342. (1) Paragraph 35(1)(b) of the Public Service Employment Act is replaced by the following:

(b) has the right to make a complaint under section 77 or 78.

(2) Paragraph 35(2)(b) of the Act is replaced by the following:

(b) has the right to make a complaint under section 77 or 78.

Marginal note:2005, c. 21, s. 115

343. Paragraph 35.1(1)(b) of the Act is replaced by the following:

(b) has the right to make a complaint under section 77 or 78.

Marginal note:2006, c. 9, s. 101

344. Paragraph 35.2(b) of the Act is replaced by the following:

(b) has the right to make a complaint under section 77 or 78.

Marginal note:2006, c. 9, s. 101

345. Paragraph 35.3(b) of the Act is replaced by the following:

(b) has the right to make a complaint under section 77 or 78.

346. Subsection 58(2) of the Act is replaced by the following:

Marginal note:Extension by deputy head

(2) A deputy head may extend the specified term, and the extension does not constitute an appointment or deployment or entitle any person to make a complaint under section 77 or 78.

347. Subsection 59(2) of the Act is replaced by the following:

Marginal note:Not an appointment or deployment

(2) A conversion under subsection (1) does not constitute an appointment or deployment or entitle any person to make a complaint under section 77 or 78.

348. Subsections 64(1) and (2) of the Act are replaced by the following:

Marginal note:Laying off of employees

64. (1) If an employee’s services are no longer required by reason of lack of work, the discontinuance of a function or the transfer of work or a function outside those portions of the federal public administration named in Schedule I, IV or V to the Financial Administration Act, the deputy head may lay off the employee, in which case the deputy head shall so advise the employee.

Marginal note:Selection of employees

(2) If the deputy head determines under subsection (1) that some but not all of the employees in any part of the deputy head’s organization who occupy positions at the same group and level and perform similar duties are to be laid off, the employees to be laid off shall be selected in accordance with the Commission’s regulations.

349. (1) Subsection 65(1) of the Act is replaced by the following:

Marginal note:Complaint to Tribunal re lay-off

65. (1) If some but not all of the employees in a part of an organization who occupy positions at the same group and level and perform similar duties are informed by the deputy head that they will be laid off, any employee selected for lay-off may make a complaint to the Tribunal, in the manner and within the time fixed by the Tribunal’s regulations, that his or her selection constituted an abuse of authority.

(2) Subsections 65(5) and (6) of the Act are replaced by the following:

Marginal note:Discriminatory practice

(5) If the Tribunal determines that the Commission or the deputy head has engaged in a discriminatory practice set out in section 7, 8, 10 or 14 of the Canadian Human Rights Act, it may order that the Commission or deputy head, as the case may be, cease the discriminatory practice and take measures to redress the practice or to prevent the same or a similar practice from occurring in the future or it may make any order that may be made under any of paragraphs 53(2)(b) to (e) or subsection 53(3) of that Act.

(3) Subsection 65(8) of the Act is repealed.

350. The Act is amended by adding the following after section 76:

Marginal note:Discriminatory practice

76.1 (1) If the Tribunal finds a complaint under section 74 to be substantiated and it determines that the Commission or the deputy head has engaged in a discriminatory practice set out in section 7, 8, 10 or 14 of the Canadian Human Rights Act, it may

(a) order that the Commission or deputy head, as the case may be, cease the discriminatory practice and take measures to redress the practice or to prevent the same or a similar practice from occurring in the future; or

(b) make any order that may be made under any of paragraphs 53(2)(b) to (e) or subsection 53(3) of that Act.

Marginal note:Application of Canadian Human Rights Act

(2) In considering whether a complaint is substantiated, the Tribunal may interpret and apply the Canadian Human Rights Act, other than its provisions relating to the right to equal pay for work of equal value.

351. Sections 77 to 79 of the Act are replaced by the following:

Marginal note:Grounds of complaint

77. (1) When the Commission has made or proposed an appointment in an internal appointment process, a person referred to in subsection (2) may, in the manner and within the period provided by the Tribunal’s regulations, make a complaint to the Tribunal that he or she was not appointed or proposed for appointment by reason of

(a) an abuse of authority by the Commission in the exercise of its authority under subsection 30(2);

(b) an abuse of authority by the Commission in choosing between an advertised and a non-advertised internal appointment process; or

(c) the failure of the Commission to assess the complainant in the official language of his or her choice as required by subsection 37(1).

Marginal note:Persons entitled to make complaint

(2) The following persons may make a complaint under subsection (1):

(a) in the case of an advertised internal appointment process, a person who is an unsuccessful candidate in the area of selection determined under section 34 and who has been determined by the Commission to meet the essential qualifications for the work to be performed as established by the deputy head under paragraph 30(2)(a); and

(b) in the case of a non-advertised internal appointment process, a person who is in the area of selection determined under section 34.

Marginal note:Excluded grounds

(3) The Tribunal may not consider an allegation that fraud occurred in an appointment process or that an appointment or proposed appointment was not free from political influence.

Marginal note:When no right to complain

(4) No complaint may be made under subsection (1) in respect of an appointment under subsection 15(6) (reappointment on revocation by deputy head), section 40 (priorities  —  surplus employees), subsection 41(1) or (4) (other priorities), section 73 (reappointment on revocation by Commission) or section 86 (reappointment following Tribunal order), or under any regulations made under paragraph 22(2)(a).

Marginal note:Corrective action when complaint upheld

(5) If the Tribunal finds the complaint to be substantiated, it may order the Commission to revoke the appointment or not to make the appointment, as the case may be, and to take any corrective action that the Tribunal considers appropriate.

Marginal note:Grounds of complaint  — person not meeting qualifications

78. (1) When, in the case of an advertised internal appointment process, the Commission has made or proposed an appointment, a person who is an unsuccessful candidate in the area of selection determined under section 34 and who has been determined by the Commission not to meet the essential qualifications for the work to be performed as established by the deputy head under paragraph 30(2)(a) or the qualifications considered by the deputy head under subparagraph 30(2)(b)(i) to be an asset for that work may, in the manner and within the period provided by the regulations, make a complaint to the Tribunal that the Commission

(a) has abused its authority under subsection 30(2) in making that determination in relation to those qualifications; or

(b) has failed to assess the complainant in the official language of the complainant’s choice as required by subsection 37(1).

Marginal note:When no right to complain

(2) No complaint may be made under subsection (1) in respect of an appointment under subsection 15(6) (reappointment on revocation by deputy head), section 40 (priorities  —  surplus employees), subsection 41(1) or (4) (other priorities), section 73 (reappointment on revocation by Commission) or section 86 (reappointment following Tribunal order), or under any regulations made under paragraph 22(2)(a).

Marginal note:Corrective action when complaint upheld

(3) If the Tribunal finds the complaint to be substantiated, it may order the Commission to revoke the appointment or not to make the appointment, as the case may be, and to take any corrective action that the Tribunal considers appropriate.

Marginal note:Right to be heard

79. A person making a complaint under section 77 or 78, the person appointed or proposed for appointment, the deputy head and the Commission  —  or their representatives —  are entitled to be heard by the Tribunal.

352. Section 80 of the English version of the Act is replaced by the following:

Marginal note:Application of Canadian Human Rights Act

80. In considering whether a complaint under section 77 or 78 is substantiated, the Tribunal may interpret and apply the Canadian Human Rights Act, other than its provisions relating to the right to equal pay for work of equal value.

353. Sections 81 and 82 of the Act are replaced by the following:

Marginal note:Corrective action when complaint upheld

81. (1) If the Tribunal finds a complaint under section 77 or 78 to be substantiated, the Tribunal may

(a) order the Commission or the deputy head to revoke the appointment or not to make the appointment, as the case may be, and to take any corrective action that the Tribunal considers appropriate; and

(b) if it has determined that the Commission or the deputy head has engaged in a discriminatory practice set out in section 7, 8, 10 or 14 of the Canadian Human Rights Act,

(i) order that the Commission or deputy head, as the case may be, cease the discriminatory practice and take measures to redress the practice or to prevent the same or a similar practice from occurring in the future; or

(ii) make any order that may be made under any of paragraphs 53(2)(b) to (e) or subsection 53(3) of that Act.

Marginal note:Restriction

(2) The Tribunal may not order the Commission or the deputy head to make an appointment or to conduct a new appointment process if the Commission or the deputy head, as the case may be, has not been determined to have engaged in a discriminatory practice set out in section 7, 8, 10 or 14 of the Canadian Human Rights Act.

354. Paragraph 83(a) of the Act is replaced by the following:

(a) the person who made the complaint under section 77 or 78,

355. Section 84 of the Act is amended by striking out “and” at the end of paragraph (a), by adding “or” at the end of paragraph (b) and by adding the following after paragraph (b):

(c) if the complaint involved a discriminatory practice set out in section 7, 8, 10 or 14 of the Canadian Human Rights Act, make any order against the deputy head or the Commission that the Tribunal considers appropriate in the circumstances.

356. Subsection 88(2) of the Act is replaced by the following:

Marginal note:Mandate

(2) The Tribunal’s mandate is to consider and dispose of complaints made under subsection 65(1) and sections 74, 77, 78 and 83.

357. Section 99 of the Act is amended by adding the following after subsection (2):

Marginal note:Dismissing complaint

(2.1) The Tribunal may summarily dismiss a complaint if the complainant fails to comply with any procedures set out in this Act, or the Tribunal’s regulations, in relation to a complaint.

Marginal note:Dismissing complaint

(2.2) The Tribunal may summarily dismiss a complaint if the deputy head has taken the corrective action that the Tribunal considers appropriate in relation to the complaint.

358. Section 101 of the Act is replaced by the following:

Marginal note:Copy of decision provided

101. The Tribunal shall render a decision on a complaint made under subsection 65(1) or section 74, 77, 78 or 83 and provide a copy of it  —  including any written reasons  —  and any accompanying order to the Commission and to each person who exercised the right to be heard on the complaint.

359. (1) Paragraph 109(a) of the Act is replaced by the following:

(a) the manner in which and the time within which a complaint may be made under subsection 65(1) or section 74, 77, 78 or 83;

(2) Section 109 of the Act is amended by adding “and” at the end of paragraph (c) and by repealing paragraph (d).

Transitional Provision

Marginal note:Complaints

360. The provisions of the Public Service Employment Act, as it Act read immediately before the day on which sections 348 to 357 come into force, continue to apply in respect of every complaint made under that Act before that day.

2009, c. 2. s. 394Public Sector Equitable Compensation Act

361. Section 17 of the Public Sector Equitable Compensation Act is replaced by the following:

Marginal note:Arbitration

17. If arbitration has been chosen under subsection 104(1) of the Public Service Labour Relations Act as, or is, by reason of subsection 104(2) of that Act, the process for the resolution of disputes, questions concerning the provision of equitable compensation to employees may be the subject of a request for arbitration under subsection 136(1) of that Act.

362. Section 20 of the Act is replaced by the following:

Marginal note:Conciliation

20. If conciliation is the process for the resolution of disputes by reason of section 103 of the Public Service Labour Relations Act, questions concerning the provision of equitable compensation to employees may be the subject of a request for conciliation under subsection 161(1) of that Act.

Coordinating Amendments

Marginal note:2009, c. 2

363. (1) In this section, “other Act” means the Budget Implementation Act, 2009.

(2) If section 400 of the other Act comes into force before section 295 of this Act, then section 13 of the Public Service Labour Relations Act is replaced by the following:

Marginal note:Mandate

13. The Board’s mandate is to provide adjudication services and mediation services in accordance with this Act and the Public Sector Equitable Compensation Act.

(3) If section 295 of this Act comes into force before section 400 of the other Act, then that section 400 is replaced by the following:

400. Section 13 of the Public Service Labour Relations Act is replaced by the following:

Marginal note:Mandate

13. The Board’s mandate is to provide adjudication services and mediation services in accordance with this Act and the Public Sector Equitable Compensation Act.

(4) If section 295 of this Act comes into force on the same day as section 400 of the other Act, then that section 400 is deemed to have come into force before that section 295 and subsection (2) applies as a consequence.

Coming into Force

Marginal note:Subsections 307(2) and 316(2)

364. (1) Subsections 307(2) and 316(2) come into force on the day on which section 17 of the Public Sector Equitable Compensation Act comes into force.

Marginal note:Sections 325 to 336, 340 and 342 to 359

(2) Sections 325 to 336, 340 and 342 to 359 come into force on a day to be fixed by order of the Governor in Council.

Division 18Reorganization of Federal Public Service Labour Relations and Employment Boards

Public Service Labour Relations and Employment Board Act

Marginal note:Enactment of Act

365. The Public Service Labour Relations and Employment Board Act is enacted as follows:

An Act to establish the Public Service Labour Relations and Employment Board
SHORT TITLE

Marginal note:Short title

1. This Act may be cited as the Public Service Labour Relations and Employment Board Act.

INTERPRETATION

Marginal note:Definitions

2. The following definitions apply in this Act.

“bargaining agent”

« agent négociateur »

“bargaining agent” has the same meaning as in subsection 2(1) of the Public Service Labour Relations Act.

“employer”

« employeur »

“employer” has the same meaning as in subsection 2(1) of the Public Service Labour Relations Act.

“Minister”

« ministre »

“Minister” means the Minister who is designated under section 3.

DESIGNATION OF MINISTER

Marginal note:Power of Governor in Council

3. The Governor in Council may, by order, designate any federal minister, other than a member of the Treasury Board, to be the Minister referred to in this Act.

PUBLIC SERVICE LABOUR RELATIONS AND EMPLOYMENT BOARD

Establishment and Composition

Marginal note:Establishment of Board

4. (1) A board is established, to be known as the Public Service Labour Relations and Employment Board.

Marginal note:Board’s composition

(2) The Board is composed of

(a) a Chairperson, who is to hold office on a full-time basis;

(b) not more than two Vice-chairpersons, who are to hold office on a full-time basis;

(c) not more than 10 other members who are to hold office on a full-time basis; and

(d) any part-time members that the Governor in Council considers necessary to carry out the Board’s powers, duties and functions.

Appointment of Members

Marginal note:Qualifications

5. (1) To be eligible to hold office as a member, a person must

(a) be a Canadian citizen within the meaning of the Citizenship Act or a permanent resident as defined in subsection 2(1) of the Immigration and Refugee Protection Act;

(b) not hold any other office or employment under the employer;

(c) not be a member of or hold an office or employment under an employee organization, as defined in subsection 2(1) of the Public Service Labour Relations Act, that is certified as a bargaining agent; and

(d) not accept any office or employment, or carry on any activity, that is inconsistent with the person’s duties or functions.

Marginal note:Exception

(2) Despite paragraph (1)(b), a person is not ineligible to hold office as a member by reason only of holding office as a member of any board that may be constituted by the Commissioner in Council of the Northwest Territories or the Legislature of Yukon or the Legislature for Nunavut with powers, duties and functions similar to those of the Board.

Marginal note:Appointments of other members from list

6. (1) Every member, other than the Chairperson or a Vice-chairperson, must be appointed from among eligible persons whose names are on a list prepared by the Chairperson after consultation with the employer and the bargaining agents.

Marginal note:Contents

(2) The Chairperson must set out on the list

(a) the names of all eligible persons who are recommended by the employer;

(b) the names of all eligible persons who are recommended by the bargaining agents; and

(c) the names of any other eligible persons whom the Chairperson considers suitable for appointment.

Marginal note:Equal numbers

(3) The appointment of members, other than the Chairperson and the Vice-chairpersons, is to be made so as to ensure that, to the extent possible, an equal number are appointed from among persons recommended by the employer and from among persons recommended by the bargaining agents.

Marginal note:Non-representative Board

(4) Despite being recommended by the employer or the bargaining agents, a member does not represent either the employer or the employees and must act impartially in the exercise of their powers and the performance of their duties and functions.

Marginal note:Residence of full-time members

7. A full-time member must reside in the National Capital Region as it is described in the schedule to the National Capital Act or within any distance of it that the Governor in Council may determine.

Marginal note:Appointment of members

8. (1) Each member is to be appointed by the Governor in Council, on the Minister’s recommendation, to hold office during good behaviour and may be removed by the Governor in Council for cause.

Marginal note:Term of office

(2) A full-time member may be appointed for a term of office that is not more than five years and a part-time member may be appointed for a term of office that is not more than three years.

Marginal note:Reappointment

(3) A member is eligible for reappointment on the expiry of any term of office.

Marginal note:Completion of duties and functions

(4) A person who ceases to be a member for any reason other than removal may, at the request of the Chairperson, within eight weeks after ceasing to be a member, carry out and complete any duties or functions that they would otherwise have had in connection with any matter that came before the Board while they were still a member and in respect of which there was any proceeding in which they participated as a member. For that purpose, the person is deemed to be a part-time member.

Marginal note:Oath or solemn affirmation

9. Before beginning their duties or functions, a person who is appointed as a member of the Board must take an oath or make a solemn affirmation in the following form before a commissioner of oaths or other person having authority to administer oaths or solemn affirmations:

I, ...................., do swear (or solemnly affirm) that I will faithfully, truly and impartially, to the best of my judgment, skill and ability, execute and perform the office of member (or Chairperson or Vice-chairperson) of the Public Service Labour Relations and Employment Board.

Remuneration

Marginal note:Remuneration

10. Every member and former member referred to in subsection 8(4)

(a) is to be paid the remuneration that may be determined by the Governor in Council; and

(b) is entitled to be paid reasonable travel and other expenses incurred by them in the course of their duties while absent from, in the case of full-time members, their ordinary place of work and, in the case of part-time members, their ordinary place of residence.

Application of Other Acts

Marginal note:Application of Public Service Superannuation Act

11. A full-time member is deemed to be employed in the public service for the purposes of the Public Service Superannuation Act.

Marginal note:Application of certain Acts

12. A member is deemed to be an employee for the purposes of the Government Employees Compensation Act and to be employed in the federal public administration for the purposes of regulations made under section 9 of the Aeronautics Act.

Head Office and Meetings

Marginal note:Head office

13. The Board’s head office is to be in the National Capital Region as it is described in the schedule to the National Capital Act but the Board may, with the approval of the Governor in Council, establish any regional offices that the Chairperson considers necessary for the exercise of the Board’s powers and the performance of its duties and functions.

Marginal note:Services and facilities

14. In exercising its powers and performing its duties and functions, the Board may use any services and facilities of departments, boards and agencies of the Government of Canada that are appropriate for the Board’s operation.

Marginal note:Meetings

15. (1) Meetings of the Board are to be held at any date, time and place that the Chairperson considers appropriate for the conduct of the Board’s business.

Marginal note:Off-site participation

(2) A meeting of the Board may be held by any means of telecommunication that permits all persons who are participating to communicate adequately with each other. A person who is participating by such means is deemed to be present at the meeting.

Marginal note:Quorum

16. The Chairperson, one Vice-chairperson and a majority of the other full-time members constitute a quorum at a meeting of the Board.

Marginal note:Attendance of part-time members at meetings

17. A part-time member is not entitled to attend a meeting of the Board, but may attend at the Chairperson’s invitation.

Marginal note:Decision of majority

18. A decision of a majority of the Board’s members who are present at a meeting of the Board is a decision of the Board.

Board’s Powers, Duties and Functions

Marginal note:Powers, duties and functions

19. The Board is to exercise the powers and perform the duties and functions that are conferred or imposed on it by this Act or any other Act of Parliament.

Marginal note:Powers of Board

20. The Board has, in relation to any matter before it, the power to

(a) summon and enforce the attendance of witnesses and compel them to give oral or written evidence on oath in the same manner as a superior court of record;

(b) order pre-hearing procedures, including pre-hearing conferences that are held in private, and determine the date, time and place of the hearings for those procedures;

(c) order that a pre-hearing conference or a hearing be conducted using any means of telecommunication that permits all persons who are participating to communicate adequately with each other;

(d) administer oaths and solemn affirmations;

(e) accept any evidence, whether admissible in a court of law or not; and

(f) compel, at any stage of a proceeding, any person to produce the documents and things that may be relevant.

Marginal note:Frivolous matters

21. The Board may dismiss summarily any matter that in its opinion is trivial, frivolous, vexatious or was made in bad faith.

Marginal note:Determination without oral hearing

22. The Board may decide any matter before it without holding an oral hearing.

Marginal note:General power to assist parties

23. The Board, or any of its members or employees that it designates, may, if the parties agree, assist the parties in resolving any issues in dispute at any stage of a proceeding and by any means that the Board considers appropriate, without prejudice to the Board’s power to determine issues that have not been settled.

Marginal note:Delegation by Board

24. The Board may

(a) authorize the Chairperson to exercise any of its powers or perform any of its duties or functions, other than the power to make regulations; and

(b) authorize any person to exercise any of its powers under paragraphs 20(d) to (f) and require the person to report to it on what the person has done.

Chairperson

Marginal note:Chief executive officer

25. The Chairperson is the chief executive officer of the Board and has supervision over and direction of the Board’s work, including

(a) the assignment and reassignment of matters that the Board is seized of to panels;

(b) the composition of panels; and

(c) the determination of the date, time and place of hearings.

Marginal note:Delegation by Chairperson

26. The Chairperson may authorize a Vice-chairperson to exercise any of the Chairperson’s powers or perform any of the Chairperson’s duties or functions, including powers, duties or functions delegated to the Chairperson by the Board.

Marginal note:Acting Chairperson

27. (1) If the Chairperson is absent or unable to act or the office of Chairperson is vacant, a Vice-chairperson designated by the Minister is to act as Chairperson.

Marginal note:Absence of Chairperson and Vice-chairpersons

(2) If the Chairperson and the Vice-chairpersons are absent or unable to act, or all of those offices are vacant, the Minister may designate a member to act as Chairperson but no member so designated has authority to act as Chairperson for more than 90 days without the Governor in Council’s approval.

Human Resources

Marginal note:Responsibility for human resources management

28. The Chairperson is authorized, in respect of persons who are employed by the Board, to exercise the powers and perform the duties and functions of the Treasury Board under the Financial Administration Act that relate to human resources management within the meaning of paragraph 7(1)(e) and section 11.1 of that Act, and those of deputy heads under subsection 12(2) of that Act, including the determination of terms and conditions of employment of persons who are employed by the Board.

Marginal note:Human resources

29. (1) The Chairperson may employ persons for the conduct of the Board’s work, fix their period of employment, establish their probationary periods, reject them on probation and lay them off.

Marginal note:Political activities

(2) Part 7 of the Public Service Employment Act applies to persons who are employed by the Board as if they were employees as defined in subsection 2(1) of that Act.

Marginal note:Experts and advisors

30. (1) The Chairperson may engage on a temporary basis the services of mediators and other experts to assist the Board in an advisory capacity and, subject to the Governor in Council’s approval, fix their remuneration.

Marginal note:Non-application of Public Service Superannuation Act

(2) A person who is engaged under subsection (1) is not to be considered as being employed in the public service for the purposes of the Public Service Superannuation Act by reason only of being so engaged.

Protection

Marginal note:Evidence respecting information obtained

31. A member of the Board, any person who is employed by the Board or any person who is engaged under subsection 30(1) is not competent or compellable to appear as a witness in any civil action, suit or other proceeding respecting information obtained in the exercise of their powers or the performance of their duties and functions.

Marginal note:No disclosure of notes and drafts

32. Notes or draft orders or decisions of the Board or of any of its members are not to be disclosed without the consent of the person who made them.

Marginal note:Immunity from proceedings

33. No criminal or civil proceedings lie against a member of the Board, any person who is employed by the Board, any person who is engaged under subsection 30(1) or any person who is acting on the Board’s behalf for anything done  —  or omitted to be done  —  or reported or said by that member or that person in good faith in the course of the exercise or performance or purported exercise or performance of their powers, duties or functions.

Review and Enforcement of Orders and Decisions

Marginal note:No review by court

34. (1) Every order or decision of the Board is final and is not to be questioned or reviewed in any court, except in accordance with the Federal Courts Act on the grounds referred to in paragraph 18.1(4)(a), (b) or (e) of that Act.

Marginal note:Standing of Board

(2) The Board has standing to appear in proceedings under subsection (1) for the purpose of making submissions regarding the standard of review to be used with respect to its orders or decisions and its jurisdiction, policies and procedures.

Marginal note:No review by certiorari, etc.

(3) Except as permitted by subsection (1), no order, decision or proceeding of the Board made or carried on under or purporting to be made or carried on under any Act of Parliament may, on any ground, including the ground that the order, decision or proceeding is beyond the Board’s jurisdiction to make or carry on or that, in the course of any proceeding, the Board for any reason exceeded or lost its jurisdiction,

(a) be questioned, reviewed, prohibited or restrained; or

(b) be made the subject of any proceedings in or any process of any court, whether by way of injunction, certiorari, prohibition, quo warranto or otherwise.

Marginal note:Filing of Board’s orders in Federal Court

35. (1) The Board must, on the written request of any person or organization affected by any order of the Board, file a certified copy of the order, exclusive of the reasons for it, in the Federal Court, unless, in the Board’s opinion,

(a) there is no indication, or likelihood, of failure to comply with the order; or

(b) there is another good reason why the filing of the order in the Federal Court would serve no useful purpose.

Marginal note:Effect of filing

(2) An order of the Board becomes an order of the Federal Court when a certified copy of it is filed in that court, and it may subsequently be enforced as such.

Regulations

Marginal note:Regulations

36. The Board may make regulations respecting

(a) the practice and procedure for hearings and pre-hearing proceedings of the Board;

(b) the use of any means of telecommunication in the conduct of its activities;

(c) the hearing or determination of any application, complaint, question or dispute that may be made to, referred to or otherwise come before the Board;

(d) the establishment of an expeditious procedure and matters that may be determined under that procedure;

(e) the forms to be used in respect of any proceeding that may come before the Board;

(f) the manner in which and the period during which evidence and information may be presented to the Board in connection with any proceeding that may come before it;

(g) the time within which and the persons to whom notices, other than those referred to in subsections 130(1) and (2) of the Public Service Labour Relations Act, and other documents must be sent or given, and when the notices are deemed to have been sent, given or received; and

(h) any other matters or things that are incidental or conducive to the exercise of the Board’s powers and the performance of its duties and functions.

Panels

Marginal note:Panels

37. (1) Subject to subsection (2), matters of which the Board is seized are to be heard by a panel consisting of one member.

Marginal note:Three-member panels

(2) If the Chairperson considers that the complexity of a matter requires it, he or she may assign the matter to a panel consisting of three members.

Marginal note:Chairperson of three-member panel

(3) If the Chairperson is a member of a three-person panel, he or she is to be its chairperson; otherwise, he or she must designate a member of it to be its chairperson.

Marginal note:Member’s death or incapacity

38. (1) In the event of the death or incapacity of a member of a three-member panel, other than the death or incapacity of the chairperson of the panel, the chairperson of the panel may determine any matter that was before the panel and his or her decision is deemed to be the panel’s decision.

Marginal note:Chairperson’s death or incapacity

(2) In the event of the death or incapacity of the chairperson of a panel, or of the member when the panel consists of one member, the Chairperson must establish a new panel to hear and determine the matter on any terms and conditions that the Chairperson may specify for the protection and preservation of the rights and interests of the parties.

Marginal note:Powers, rights and privileges

39. A panel has all of the Board’s powers, rights and privileges with respect to any matter assigned to the panel.

Marginal note:Panel’s decision

40. (1) A decision made by a majority of the members of a panel is the decision of the panel or, if no decision is supported by the majority, the decision of the chairperson of the panel is the decision of the panel.

Marginal note:Board’s decision

(2) A decision of a panel is a decision of the Board.

Witness Fees

Marginal note:Payment of witness fees

41. A person who is summoned by the Board to attend as a witness at any of its proceedings is entitled to receive fees and allowances for so attending that are equal to those to which the person would be entitled if they were summoned to attend before the Federal Court.

Annual Report

Marginal note:Obligation to prepare report

42. (1) As soon as feasible after the end of each fiscal year, the Board must prepare and submit to the Minister a report on its activities during the immediately preceding fiscal year, other than its activities under the Parliamentary Employment and Staff Relations Act.

Marginal note:Tabling in Parliament

(2) The Minister must cause the report to be tabled in each House of Parliament within the first 15 days on which that House is sitting after the Minister receives it.

2003, c. 22, s. 2Public Service Labour Relations Act

Amendments to the Act

366. (1) The definitions “adjudicator” and “Board” in subsection 2(1) of the Public Service Labour Relations Act are replaced by the following:

“adjudicator”

« arbitre de grief »

“adjudicator” means a person or board of adjudication to whom a grievance is referred under paragraph 223(2)(a), (b) or (c).

“Board”

« Commission »

“Board” means the Public Service Labour Relations and Employment Board that is established by subsection 4(1) of the Public Service Labour Relations and Employment Board Act.

(2) Paragraph 2(3)(a) of the Act is replaced by the following:

(a) the person is engaged under subsection 30(1) of the Public Service Labour Relations and Employment Board Act; or

Marginal note:2003, c. 22, s. 273

367. The headings before section 12 and sections 12 to 38 of the Act are replaced by the following:

Division 4Public Service Labour Relations and Employment Board

Marginal note:Administration of Act

12. The Board administers this Act and it may exercise the powers and perform the duties and functions that are conferred or imposed on it by this Act, or as are incidental to the attainment of the objects of this Act, including the making of orders requiring compliance with this Act, with regulations made under it or with decisions made in respect of a matter coming before the Board.

Marginal note:Adjudication services

13. The Board is to provide adjudication services that consist of the hearing of applications and complaints made under this Part, the referral of grievances to adjudication in accordance with Part 2 and the hearing of matters brought before the Board under Part 3.

Marginal note:Mediation services

14. The Board is to provide mediation services that consist of

(a) assisting parties in the negotiation of collective agreements and their renewal;

(b) assisting parties in the management of the relations resulting from the implementation of collective agreements;

(c) mediating in relation to grievances; and

(d) assisting the Chairperson in discharging his or her responsibilities under this Act.

Marginal note:National Joint Council

15. The Board is to provide facilities and administrative support to the National Joint Council.

Marginal note:Powers

16. The Board has, in relation to any matter before it, the power to

(a) examine any evidence that is submitted to it respecting membership of employees in an employee organization seeking certification and, in the case of a council of employee organizations seeking certification, in any employee organization forming part of the council;

(b) examine documents forming or relating to the constitution or articles of association of any employee organization seeking certification and, in the case of a council of employee organizations seeking certification, those of any employee organization forming part of the council;

(c) require the employer to post and keep posted in appropriate places any notice that the Board considers necessary to bring matters or proceedings before the Board to the attention of employees;

(d) subject to any limitations that the Governor in Council may establish in the interests of defence or security, enter any premises of the employer where work is being or has been done by employees, inspect and view any work, material, machinery, appliance or article in the premises and require any person in the premises to answer all questions relating to the matter before it;

(e) subject to any limitations that the Governor in Council may establish in the interests of defence or security, enter any premises of the employer for the purpose of conducting representation votes during working hours; and

(f) authorize any person to do anything that the Board may do under paragraphs (a) to (e) and require the person to report to it on what the person has done.

368. Paragraphs 39(i) to (m) of the Act are replaced by the following:

(l) the circumstances in which the following evidence may be received by it as evidence that any employees wish or do not wish to have a particular employee organization represent them as their bargaining agent, and the circumstances in which it must not make public any evidence so received:

(i) evidence as to membership of employees in an employee organization,

(ii) evidence of objection by employees to certification of an employee organization, and

(iii) evidence of signification by employees that they no longer wish to be represented by an employee organization; and

(m) any other matter that is incidental or conducive to the attainment of the objects of this Part.

369. Sections 40 and 41 of the Act are repealed.

Marginal note:2003, c. 22, s. 274

370. The heading before section 44 and sections 44 to 53 of the Act are repealed.

371. Section 147 of the Act is replaced by the following:

Marginal note:Powers

147. (1) The arbitration board has all the powers of the Board set out in paragraphs 16(c) and (d) of this Act and paragraphs 20(a) and (d) to (f) of the Public Service Labour Relations and Employment Board Act.

Marginal note:Delegation

(2) The arbitration board may authorize any person to exercise any of its powers set out in paragraphs 16(c) and (d) of this Act and paragraphs 20(d) and (e) of the Public Service Labour Relations and Employment Board Act, and require that person to report to it on the exercise of those powers.

372. Section 174 of the Act is replaced by the following:

Marginal note:Powers

174. (1) The public interest commission has all the powers of the Board set out in paragraphs 16(c) and (d) of this Act and paragraphs 20(a) and (d) to (f) of the Public Service Labour Relations and Employment Board Act.

Marginal note:Delegation

(2) The public interest commission may authorize any person to exercise any of its powers set out in paragraphs 16(c) and (d) of this Act and paragraphs 20(d) and (e) of the Public Service Labour Relations and Employment Board Act, and require that person to report to it on the exercise of those powers.

373. The headings before section 223 of the Act are replaced by the following:

Adjudication

Notice to Board

374. Subsections 223(1) and (2) of the Act are replaced by the following:

Marginal note:Notice

223. (1) A party who refers a grievance to adjudication must, in accordance with the regulations, give notice of the reference to the Board.

Marginal note:Action to be taken by Chairperson

(2) If the party specifies in the notice that an adjudicator is named in an applicable collective agreement, that an adjudicator has otherwise been selected by the parties or, if no adjudicator is so named or has been selected, that the party requests the establishment of a board of adjudication, then the Chairperson must, on receipt of the notice by the Board,

(a) if the grievance is one arising out of a collective agreement and an adjudicator is named in the agreement, refer the matter to the adjudicator;

(b) if the parties have selected an adjudicator, refer the matter to the adjudicator; and

(c) if a board of adjudication has been requested and the other party has not objected in the time provided for in the regulations, establish the board and refer the matter to it.

Marginal note:Board seized of grievance

(2.1) If the notice does not specify any of the things described in subsection (2), or if a board of adjudication has been requested and the other party has objected in the time provided for in the regulations, the Board is seized of the grievance.

375. Section 225 of the Act is replaced by the following:

Marginal note:Compliance with procedures

225. No grievance may be referred to adjudication until the grievance has been presented at all required levels in accordance with the applicable grievance process.

376. Sections 226 and 227 of the Act are replaced by the following:

Marginal note:Powers of adjudicator

226. (1) An adjudicator may, in relation to any matter referred to adjudication, exercise any of the powers set out in paragraph 16(d) of this Act and sections 20 to 23 of the Public Service Labour Relations and Employment Board Act.

Marginal note:Powers of adjudicator and Board

(2) An adjudicator or the Board may, in relation to any matter referred to adjudication,

(a) interpret and apply the Canadian Human Rights Act and any other Act of Parliament relating to employment matters, other than the provisions of the Canadian Human Rights Act that are related to the right to equal pay for work of equal value, whether or not there is a conflict between the Act being interpreted and applied and the collective agreement, if any;

(b) give relief in accordance with paragraph 53(2)(e) or subsection 53(3) of the Canadian Human Rights Act; and

(c) award interest in the case of grievances involving termination, demotion, suspension or financial penalty at a rate and for a period that the adjudicator or the Board, as the case may be, considers appropriate.

377. The heading before section 228 of the Act is replaced by the following:

Decision
378. Subsections 228(1) and (2) of the Act are replaced by the following:

Marginal note:Hearing of grievance

228. (1) If a grievance is referred to adjudication, the adjudicator or the Board, as the case may be, must give both parties to the grievance an opportunity to be heard.

Marginal note:Decision on grievance

(2) After considering the grievance, the adjudicator or the Board, as the case may be, must render a decision, make the order that the adjudicator or the Board consider appropriate in the circumstances, and then send a copy of the order  —  and, if there are written reasons for the decision, a copy of the reasons  —  to each party, to the representative of each party and to the bargaining agent, if any, for the bargaining unit to which the employee whose grievance it is belongs. The adjudicator must also deposit a copy of the order and, if there are written reasons for the decision, a copy of the reasons, with the Chairperson.

379. Sections 229 and 230 of the Act are replaced by the following:

Marginal note:Decision requiring amendment

229. An adjudicator’s or the Board’s decision may not have the effect of requiring the amendment of a collective agreement or an arbitral award.

Marginal note:Determination of reasonableness of opinion

230. In the case of an employee in the core public administration or an employee of a separate agency designated under subsection 209(3), in making a decision in respect of an employee’s individual grievance relating to a termination of employment or demotion for unsatisfactory performance, an adjudicator or the Board, as the case may be, must determine the termination or demotion to have been for cause if the opinion of the deputy head that the employee’s performance was unsatisfactory is determined by the adjudicator or the Board to have been reasonable.

380. The portion of section 231 of the Act before paragraph (a) is replaced by the following:

Marginal note:Determination of consent requirement

231. An adjudicator or the Board, when seized of a grievance referred to in subparagraph 209(1)(c)(ii), may determine any question relating to whether

381. The portion of section 232 of the Act before paragraph (a) is replaced by the following:

Marginal note:Decision in respect of certain policy grievances

232. If a policy grievance relates to a matter that was or could have been the subject of an individual grievance or a group grievance, an adjudicator’s or the Board’s decision in respect of the policy grievance is limited to one or more of the following:

382. Sections 233 and 234 of the Act are replaced by the following:

Marginal note:No review by court

233. Subsections 34(1) and (3) of the Public Service Labour Relations and Employment Board Act apply, with any necessary modifications, to an adjudicator’s orders and decisions.

Marginal note:Filing of order in Federal Court

234. (1) The Board must, on the request in writing of any person who was a party to the proceedings that resulted in an order of an adjudicator or the Board, as the case may be, file a certified copy of the order, exclusive of the reasons for it, in the Federal Court, unless, in the opinion of the Board,

(a) there is no indication, or likelihood, of failure to comply with the order; or

(b) there is another good reason why the filing of the order in the Federal Court would serve no useful purpose.

Marginal note:Non-application

(2) Section 35 of the Public Service Labour Relations and Employment Board Act does not apply to an order of the Board referred to in subsection (1).

Marginal note:Effect of filing

(3) An order of an adjudicator or the Board becomes an order of the Federal Court when a certified copy of it is filed in that court, and it may subsequently be enforced as such.

383. Subsection 235(2) of the Act is replaced by the following:

Marginal note:Aggrieved employee represented by agent

(2) If an aggrieved employee is represented in the adjudication by a bargaining agent, the bargaining agent is liable to pay and must remit to the Board any part of the costs of the adjudication that may be determined by the Chairperson with the Board’s approval.

384. (1) Subparagraph 240(a)(ii) of the Act is replaced by the following:

(ii) the “Board” is to be read as a reference to the Public Service Labour Relations and Employment Board,

(2) Paragraphs 240(b) and (c) of the Act are replaced by the following:

(b) section 156 of that Act does not apply in respect of the Public Service Labour Relations and Employment Board; and

(c) the provisions of this Act apply, with any necessary modifications, in respect of matters brought before the Public Service Labour Relations and Employment Board.

385. Section 243 of the Act is replaced by the following:

Marginal note:Evidence respecting information obtained

243. Members of arbitration boards, members of public interest commissions, mediators, adjudicators and persons seized of referrals under subsection 182(1) are not competent or compellable to appear as witnesses in any civil action, suit or other proceeding respecting information obtained in the discharge of their functions under this Act.

386. Paragraph 244(a) of the Act is replaced by the following:

(a) notes or draft orders or decisions of an adjudicator;

387. Section 245 of the Act is replaced by the following:

Marginal note:Criminal or civil proceedings

245. No criminal or civil proceedings lie against a member of an arbitration board, a member of a public interest commission, a mediator, an adjudicator or a person seized of a referral under subsection 182(1) for anything done  —  or omitted to be done  —  or reported or said in good faith in the course of the exercise or performance or purported exercise or performance of any power, duty or function under this Act.

388. Subsection 247(1) of the Act is replaced by the following:

Marginal note:Remuneration and expenses

247. (1) Members of arbitration boards, mediators, adjudicators and persons seized of referrals under subsection 182(1) are entitled to be paid the remuneration and expenses that may be fixed by the Governor in Council.

389. Section 248 of the Act is replaced by the following:

Marginal note:Payment of witness fees

248. A person who is summoned by an arbitration board, a public interest commission or an adjudicator to attend as a witness at any proceeding under this Act is entitled to receive fees and allowances for so attending that are equal to those to which the person would be entitled if summoned to attend before the Federal Court.

390. Section 251 of the Act and the heading before it are repealed.

Transitional Provisions

Marginal note:Definitions

391. The following definitions apply in sections 392 to 402.

“former Board”

« ancienne Commission »

“former Board” means the Public Service Labour Relations Board that is established by section 12 of the Public Service Labour Relations Act, as that Act read immediately before the day on which subsection 366(1) of this Act comes into force.

“new Board”

« nouvelle Commission »

“new Board” means the Public Service Labour Relations and Employment Board that is established by subsection 4(1) of the Public Service Labour Relations and Employment Board Act.

Marginal note:Appointments terminated

392. (1) Members of the former Board cease to hold office on the day on which subsection 366(1) of this Act comes into force.

Marginal note:No compensation

(2) Despite the provisions of any contract, agreement or order, no person who was appointed to hold office as a part-time member of the former Board has any right to claim or receive any compensation, damages, indemnity or other form of relief from Her Majesty in right of Canada or from any employee or agent of Her Majesty for ceasing to hold that office or for the abolition of that office by the operation of this Division.

Marginal note:Continuation of proceedings

393. Subject to section 394, every proceeding commenced under the Public Service Labour Relations Act before the day on which subsection 366(1) of this Act comes into force is to be taken up and continued under and in conformity with that Act, as it is amended by this Division.

Marginal note:Persons employed by Public Service Staffing Tribunal

394. Every proceeding commenced under Part 1 or 2 of the Public Service Labour Relations Act before the day on which subsection 366(1) of this Act comes into force that relates to a person who is employed by the Public Service Staffing Tribunal  —  continued by subsection 88(1) of the Public Service Employment Act, as that Act read immediately before the day on which subsection 366(1) of this Act comes into force  —  and that was not finally disposed of by the former Board before that day is deemed to have been discontinued immediately before that day.

Marginal note:Continuation  — members of former Board

395. (1) A member of the former Board  —  other than an adjudicator referred to in paragraph 223(2)(d) of the Public Service Labour Relations Act, as that Act read immediately before the day on which subsection 366(1) of this Act comes into force  —  may, at the request of the Chairperson of the new Board, continue to hear and decide any matter that was before the member before that day.

Marginal note:Powers

(2) For the purposes of subsection (1), a member of the former Board exercises the same powers, and performs the same duties and functions, as a panel of the new Board.

Marginal note:Refusal to complete duties

(3) If a member of the former Board refuses to continue to hear or decide any matter referred to in subsection (1), the Chairperson of the new Board may assign it to a panel of the new Board in accordance with section 37 of the Public Service Labour Relations and Employment Board Act on any terms and conditions that the Chairperson may specify for the protection and preservation of the rights and interests of the parties.

Marginal note:Supervision by Chairperson of new Board

(4) The Chairperson of the new Board has supervision over and direction of the work of any member of the former Board who continues to hear and decide a matter referred to in subsection (1).

Marginal note:Remuneration and expenses

(5) A member of the former Board who continues to hear and decide a matter referred to in subsection (1)

(a) is to be paid the remuneration for their services that may be fixed by the Governor in Council; and

(b) is entitled to be paid reasonable travel and living expenses incurred in the course of providing services during any period of absence from their ordinary place of residence.

Marginal note:Limitation

(6) The Chairperson of the new Board may withdraw from a member of the former Board a matter referred to in subsection (1) that is not disposed of within one year after the day on which subsection 366(1) of this Act comes into force and assign it to a panel of the new Board in accordance with section 37 of the Public Service Labour Relations and Employment Board Act on any terms and conditions that the Chairperson of the new Board may specify for the protection and preservation of the rights and interests of the parties.

Marginal note:Continuation  — former Board member adjudicators

396. (1) An adjudicator referred to in paragraph 223(2)(d) of the Public Service Labour Relations Act, as that Act read immediately before the day on which subsection 366(1) of this Act comes into force, may, at the request of the Chairperson of the new Board, continue to hear and decide any grievance that was before the adjudicator before that day.

Marginal note:Powers

(2) For the purposes of subsection (1), the adjudicator exercises the same powers as an adjudicator under the Public Service Labour Relations Act, as that Act read immediately before the day on which subsection 366(1) of this Act comes into force.

Marginal note:Refusal to complete duties

(3) If an adjudicator refuses to continue to hear or decide a grievance referred to in subsection (1), the new Board is seized of the grievance.

Marginal note:Supervision by Chairperson of new Board

(4) The Chairperson of the new Board has supervision over and direction of the work of any adjudicator who continues to hear and decide a grievance referred to in subsection (1).

Marginal note:Remuneration and expenses

(5) An adjudicator who continues to hear and decide a grievance referred to in subsection (1)

(a) is to be paid the remuneration for their services that may be fixed by the Governor in Council; and

(b) is entitled to be paid reasonable travel and living expenses incurred in the course of providing services during any period of absence from their ordinary place of residence.

Marginal note:Limitation

(6) The Chairperson of the new Board may withdraw from an adjudicator a grievance referred to in subsection (1) that is not disposed of within one year after the day on which subsection 366(1) of this Act comes into force. If the Chairperson of the new Board withdraws the grievance, the new Board becomes seized of it.

Marginal note:Persons employed by former Board

397. Nothing in this Division affects the status of any person who was employed by the former Board immediately before the day on which subsection 366(1) of this Act comes into force, except that, as of that day, the person is employed by the new Board.

Marginal note:Rights and obligations transferred

398. All rights and property held by or in the name of or in trust for the former Board and all obligations and liabilities of the former Board are deemed to be rights, property, obligations and liabilities of the new Board.

Marginal note:References

399. Every reference to the former Board in a deed, contract or other document executed or, in Quebec, signed by the former Board in its own name is to be read as a reference to the new Board, unless the context requires otherwise.

Marginal note:Continuation of legal proceedings

400. Any action, suit or other proceeding to which the former Board is a party that is pending in any court on the day on which subsection 366(1) of this Act comes into force may be continued by or against the new Board in the same manner and to the same extent as it could have been continued by or against the former Board.

Marginal note:Commencement of legal proceedings

401. Any action, suit or other legal proceeding in respect of an obligation or liability incurred by the former Board may be brought against the new Board in any court that would have had jurisdiction if the action, suit or other legal proceeding had been brought against the former Board.

Marginal note:Orders and decisions continued

402. Every order or decision made by the former Board is deemed to have been made by the new Board and may be enforced as such.

2003, c. 22, ss. 12 and 13Public Service Employment Act

Amendments to the Act

403. (1) The definition “Tribunal” in subsection 2(1) of the Public Service Employment Act is repealed.

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

“Board”

« Commission des relations de travail et de l’emploi »

“Board” means the Public Service Labour Relations and Employment Board that is established by subsection 4(1) of the Public Service Labour Relations and Employment Board Act.

404. (1) The portion of subsection 35(1) of the Act before paragraph (a) is replaced by the following:

Marginal note:Mobility  — separate agencies

35. (1) Unless otherwise provided in this or any other Act, a person employed in a separate agency to which the Commission does not have the exclusive authority to make appointments

(2) Section 35 of the Act is amended by adding the following after subsection (1):

Marginal note:Exception

(1.1) Paragraph (1)(b) does not apply to persons employed by the Board.

(3) Subsection 35(3) of the Act is repealed.

405. The headings before section 88 and sections 88 to 96 of the Act are replaced by the following:

PART 6 PUBLIC SERVICE LABOUR RELATIONS AND EMPLOYMENT BOARD

Powers, Duties and Functions

Marginal note:Complaints

88. The Board is to consider and dispose of complaints made under subsection 65(1) and sections 74, 77 and 83.

Marginal note:Powers

89. Subject to any limitations that the Governor in Council may establish in the interests of defence or security, the Board has, in relation to a complaint, the power to enter any premises of an employer where work is being or has been done by employees, inspect and view any work, material, machinery, appliances or articles in the premises and require any person in the premises to answer all questions relating to the complaint.

406. The heading before section 97 of the Act is replaced by the following:

Mediation Services
407. Sections 98 to 104 of the Act are replaced by the following:

Complaint Procedure

Marginal note:Filing of order in Federal Court

103. (1) The Board must, on the request in writing of the Commission or any person to whom an order of the Board applies, file a certified copy of the order in the Federal Court unless, in the Board’s opinion

(a) there is no indication, or likelihood, of failure to comply with the order; or

(b) there is another good reason why the filing of the order in the Federal Court would serve no useful purpose.

Marginal note:Non-application

(2) Section 35 of the Public Service Labour Relations and Employment Board Act does not apply to an order of the Board referred to in subsection (1).

Marginal note:Effect of filing

(3) An order of the Board becomes an order of the Federal Court when a certified copy of it is filed in that court, and it may subsequently be enforced as such.

Marginal note:Copy of decision provided

103.1 The Board shall render a decision on a complaint made under subsection 65(1) or section 74, 77 or 83 and provide a copy of it  —  including any written reasons  —  and any accompanying order to the Commission and to each person who exercised the right to be heard on the complaint.

General

Marginal note:Certain persons not compellable as witnesses

104. Persons providing mediation services under this Part are not competent or compellable to appear as witnesses in any civil action, suit or other proceeding respecting information obtained in the discharge of their functions under this Part.

408. Paragraph 105(a) of the Act is repealed.

409. Sections 106 to 108 of the Act are repealed.

410. The heading before section 109 of the Act is replaced by the following:

Regulations
411. Paragraphs 109(b) and (c) of the Act are repealed.

412. Section 110 of the Act is repealed.

413. Subsection 111(2) of the Act is replaced by the following:

Meaning of “deputy head”

(2) For the purposes of this Part, “deputy head” includes a Commissioner who is appointed under subsection 4(5) and the Chairperson of the Board who is appointed under subsection 8(1) of the Public Service Labour Relations and Employment Board Act.

Marginal note:Terminology

414. The Act is amended by replacing “Tribunal” with “Board” in the following provisions:

(a) section 38;

(b) section 65;

(c) the heading before section 74 and sections 74 to 76;

(d) the heading before section 77 and sections 77 to 85;

(e) section 87;

(f) section 97; and

(g) the portion of section 109 before paragraph (a).

Transitional Provisions

Marginal note:Definitions

415. The following definitions apply in sections 416 to 424.

“Board”

« Commission »

“Board” means the Public Service Labour Relations and Employment Board that is established by subsection 4(1) of the Public Service Labour Relations and Employment Board Act.

“Tribunal”

« Tribunal »

“Tribunal” means the Public Service Staffing Tribunal that is continued by subsection 88(1) of the Public Service Employment Act, as that Act read immediately before the day on which subsection 366(1) of this Act comes into force.

Marginal note:Appointments terminated

416. (1) Members of the Tribunal cease to hold office on the day on which subsection 366(1) of this Act comes into force.

Marginal note:No compensation

(2) Despite the provisions of any contract, agreement or order, no person who was appointed to hold office as a part-time member of the Tribunal has any right to claim or receive any compensation, damages, indemnity or other form of relief from Her Majesty in right of Canada or from any employee or agent of Her Majesty for ceasing to hold that office or for the abolition of that office by the operation of this Division.

Marginal note:Continuation of proceedings

417. Subject to subsection 418(1), every proceeding commenced with respect to a complaint made under subsection 65(1) or sections 74, 77 or 83 of the Public Service Employment Act before the day on which subsection 366(1) of this Act comes into force is to be taken up and continued under and in conformity with that Act, as it is amended by this Division.

Marginal note:Continuation  — member of Tribunal

418. (1) A member of the Tribunal may, at the request of the Chairperson of the Board, continue to consider and dispose of any complaint that was before the member before the day on which subsection 366(1) of this Act comes into force.

Marginal note:Powers

(2) For the purposes of subsection (1), a member of the Tribunal exercises the same powers, and performs the same duties and functions, as a panel of the Board.

Marginal note:Refusal to complete duties

(3) If a member of the Tribunal refuses to continue to consider or dispose of a complaint referred to in subsection (1), the Chairperson of the Board may assign it to a panel of the Board in accordance with section 37 of the Public Service Labour Relations and Employment Board Act, on any terms and conditions that the Chairperson of the Board may specify for the protection and preservation of the rights and interests of the parties.

Marginal note:Supervision by Chairperson of Board

(4) The Chairperson of the Board has supervision over and direction of the work of any member of the Tribunal who continues to consider and dispose of a complaint referred to in subsection (1).

Marginal note:Remuneration and expenses

(5) A member of the Tribunal who continues to consider and dispose of a complaint referred to in subsection (1)

(a) is to be paid the remuneration for their services that may be fixed by the Governor in Council; and

(b) is entitled to be paid reasonable travel and living expenses incurred in the course of providing services during any period of absence from their ordinary place of residence.

Marginal note:Limitation

(6) The Chairperson of the Board may withdraw from a member of the Tribunal a complaint referred to in subsection (1) that is not disposed of within one year after the day on which subsection 366(1) of this Act comes into force and assign it to a panel of the Board in accordance with section 37 of the Public Service Labour Relations and Employment Board Act, on any terms and conditions that the Chairperson of the Board may specify for the protection and preservation of the rights and interests of the parties.

Marginal note:Persons employed by Tribunal

419. Nothing in this Division affects the status of any person who, immediately before the day on which subsection 366(1) of this Act comes into force, is employed by the Tribunal, except that, as of that day, the person is employed by the Board.

Marginal note:Rights and obligations transferred

420. All rights and property held by or in the name of or in trust for the Tribunal and all obligations and liabilities of the Tribunal are deemed to be rights, property, obligations and liabilities of the Board.

Marginal note:References

421. Every reference to the Tribunal in a deed, contract or other document executed or, in Quebec, signed by the Tribunal in its own name is to be read as a reference to the Board, unless the context requires otherwise.

Marginal note:Continuation of legal proceedings

422. Any action, suit or other proceeding to which the Tribunal is a party that is pending in any court on the day on which subsection 366(1) of this Act comes into force may be continued by or against the Board in the same manner and to the same extent as it could have been continued by or against the Tribunal.

Marginal note:Commencement of legal proceedings

423. Any action, suit or other legal proceeding in respect of an obligation or liability incurred by the Tribunal may be brought against the Board in any court that would have had jurisdiction if the action, suit or other legal proceeding had been brought against the Tribunal.

Marginal note:Orders and decisions continued

424. Every order or decision made by the Tribunal is deemed to have been made by the Board and may be enforced as such.

R.S., c. 33 (2nd Supp.)Parliamentary Employment and Staff Relations Act

Amendments to the Act

Marginal note:2003, c. 22, s. 182(3)

425. The definition “Board” in section 3 of the Parliamentary Employment and Staff Relations Act is replaced by the following:

“Board”

« Commission »

“Board” means the Public Service Labour Relations and Employment Board established by subsection 4(1) of the Public Service Labour Relations and Employment Board Act;

Marginal note:2003, c. 22, ss. 183(E), 184 and 185

426. The headings before section 9 and sections 9 to 11 of the Act are replaced by the following:

Division IPublic Service Labour Relations and Employment Board

Application of Certain Acts

Marginal note:Application

9. Unless otherwise provided in this Part, the provisions of the Public Service Labour Relations and Employment Board Act and the Public Service Labour Relations Act respecting the Board apply also in respect of this Part except that, for the purpose of that application,

(a) a reference to either of those Acts in any of those provisions shall be read as a reference to this Part; and

(b) words and expressions used in those provisions that are defined by this Part shall have the meaning given to them by this Part.

Powers, Duties and Functions

Marginal note:Powers, duties and functions

10. The Board shall administer this Part and shall exercise the powers and perform the duties and functions that are conferred or imposed on it by, or are incidental to the attainment of the objects of, this Part including the making of orders requiring compliance with this Part, with any regulation made under this Part or with any decision made in respect of a matter coming before the Board under this Part.

427. (1) Paragraphs 12(1)(f) to (i) of the Act are replaced by the following:

(f) the establishment of rules of procedure for the hearings of an adjudicator;

(h) the circumstances in which evidence as to membership of employees in an employee organization may be received by the Board as evidence that any employees wish or do not wish to have that employee organization represent them as their bargaining agent;

(2) Paragraph 12(1)(k) of the Act is replaced by the following:

(k) any other matter that is incidental or conducive to the attainment of the objects of this Part.

428. (1) Paragraphs 15(a) to (c) of the Act are repealed.

(2) Paragraph 15(f) of the Act is replaced by the following:

(f) to authorize any person to do anything that the Board may do under paragraphs (d) and (e) and to require the person to report to the Board on it.

429. Subsection 49(3) of the Act is replaced by the following:

Marginal note:Powers of arbitrator

(3) An arbitrator appointed under this section has all the powers of the Board set out in paragraph 15(d) of this Act and paragraphs 20(d) and (e) of the Public Service Labour Relations and Employment Board Act.

430. Subsection 50(1) of the Act is replaced by the following:

Marginal note:Request for arbitration

50. (1) If the parties to collective bargaining have bargained collectively in good faith with a view to concluding a collective agreement but have been unable to reach agreement on any term or condition of employment of employees in the relevant bargaining unit that may be embodied in an arbitral award, either party may, by notice in writing to the Board given in accordance with subsection (2), request arbitration in respect of that term or condition of employment.

431. Subsection 51(1) of the Act is replaced by the following:

Marginal note:Request for arbitration by other party

51. (1) If notice under section 50 is received by the Board from any party requesting arbitration, the Chairperson shall as soon as feasible send a copy of the notice to the other party, who shall within seven days after receipt of it advise the Chairperson, by notice in writing, of any matter, additional to the matters specified in the notice under section 50, that was a subject of negotiation between the parties during the period before the arbitration was requested but on which the parties were unable to reach agreement and in respect of which, being a matter that may be embodied in an arbitral award, that other party requests arbitration.

432. Paragraph 66(4)(a) of the Act is replaced by the following:

(a) shall not be a member of the Board but has, for the purposes of the adjudication, all the powers, rights and privileges of the Board other than the power to make regulations under section 12 of this Act or section 36 of the Public Service Labour Relations and Employment Board Act; and

Marginal note:1992, c. 1, s. 111

433. Section 66.1 of the Act is replaced by the following:

Marginal note:Powers of adjudicator

66.1 An adjudicator has, for the purposes of the adjudication of a grievance respecting a matter referred to in paragraph 63(1)(a), (b) or (c) that is referred to adjudication, the powers that the Board has under paragraph 15(d) of this Act and paragraphs 20(a) and (d) to (f) of the Public Service Labour Relations and Employment Board Act, in relation to the hearing or determination of a proceeding before it.

434. Paragraph 68(2)(b) of the Act is replaced by the following:

(b) deposit a copy of the decision with the Board.

435. Subsection 69(2) of the Act is replaced by the following:

Marginal note:If no adjudicator named in agreement

(2) If a grievance is referred to adjudication but is not referred to an adjudicator named in a collective agreement, and the employee, whose grievance it is, is represented in the adjudication proceedings by the bargaining agent for the bargaining unit to which the employee belongs, the bargaining agent, subject to subsection (3), is liable to pay and shall remit to the Board any part of the costs of the adjudication that may be determined by the Chairperson with the Board’s approval.

436. Section 72 of the Act and the heading “Review of Orders” before it are replaced by the following:

Review of Decisions

Marginal note:No review by court

72. (1) Except as provided in this Part, every award or decision of an arbitrator appointed under section 49 or an adjudicator is final and shall not be questioned or reviewed in any court.

Marginal note:No review by injunction, etc.

(2) No order shall be made or process entered, or proceedings taken in any court, whether by way of injunction, certiorari, prohibition, quo warranto or otherwise, to question, review, prohibit or restrain an arbitrator appointed under section 49 or an adjudicator in any of the proceedings of the arbitrator or adjudicator.

437. Section 78 of the Act and the heading before it are replaced by the following:

Protection

Marginal note:Evidence respecting information obtained

78. No adjudicator, conciliator or person appointed by the Board and no arbitrator appointed under section 49 shall be required to give evidence in any civil action, suit or other proceeding respecting information obtained in the discharge of his or her duties under this Part.

Transitional Provision

Marginal note:Continuation of proceedings

438. Every proceeding commenced under the Parliamentary Employment and Staff Relations Act before the day on which subsection 366(1) of this Act comes into force is to be taken up and continued under and in conformity with that Act, as it is amended by this Division.

R.S., c. F-7; 2002, c. 8, s. 14Federal Courts Act

Amendment to the Act

Marginal note:1990, c. 8, s. 8; 2003, c. 22, s. 262(E)

439. Paragraph 28(1)(i) of the Federal Courts Act is replaced by the following:

(i) the Public Service Labour Relations and Employment Board that is established by subsection 4(1) of the Public Service Labour Relations and Employment Board Act;

(i.1) adjudicators as defined in subsection 2(1) of the Public Service Labour Relations Act;

Transitional Provision

Marginal note:Applications for judicial review

440. A decision of an adjudicator, as defined in subsection 2(1) of the Public Service Labour Relations Act, in respect of which an application for judicial review has been made before the day on which subsection 366(1) of this Act comes into force is to be dealt with as if that subsection had not come into force.

2009, c. 2, s. 394Public Sector Equitable Compensation Act

Amendment to the Act

441. The definition “Board” in subsection 2(1) of the Public Sector Equitable Compensation Act is replaced by the following:

“Board”

« Commission »

“Board” means the Public Service Labour Relations and Employment Board that is established by subsection 4(1) of the Public Service Labour Relations and Employment Board Act.

442. The heading “PUBLIC SERVICE LABOUR RELATIONS BOARD” before section 25 of the Act is replaced by the following:

PUBLIC SERVICE LABOUR RELATIONS AND EMPLOYMENT BOARD
443. Subsection 25(2) of the Act is replaced by the following:

Marginal note:Regulations

(2) The Board may make regulations concerning the procedure in respect of the making of complaints under this Act and any other matter that is incidental or conducive to the exercise of its powers and the performance of its duties and functions under this Act.

444. Subsection 28 of the Act is replaced by the following:

Marginal note:Notice to employee

28. If the Board decides not to deal with a complaint filed with it under this Act, it shall send a written notice of its decision and the reasons for it to the employee who filed the complaint and to the employer or bargaining agent, as the case may be  —  or, in the case of a complaint filed under section 24, to the employer and the bargaining agent  —  to whom the complaint relates.

Transitional Provision

Marginal note:Continuation of proceedings

445. Every proceeding commenced under the Public Sector Equitable Compensation Act before the day on which subsection 366(1) of this Act comes into force is to be taken up and continued under and in conformity with that Act, as it is amended by this Division.

Consequential Amendments

R.S., c. A-1Access to Information Act

Marginal note:2003, c. 22, ss. 88 and 246

446. Schedule I to the Access to Information Act is amended by striking out the following under the heading “OTHER GOVERNMENT INSTITUTIONS”:

Public Service Labour Relations Board

Commission des relations de travail dans la fonction publique

Public Service Staffing Tribunal

Tribunal de la dotation de la fonction publique

447. Schedule I to the Act is amended by adding the following, in alphabetical order, under the heading “OTHER GOVERNMENT INSTITUTIONS”:

Public Service Labour Relations and Employment Board

Commission des relations de travail et de l’emploi dans la fonction publique

R.S., c. C-5Canada Evidence Act

Marginal note:2003, c. 22, s. 105

448. Item 11 of the schedule to the Canada Evidence Act is replaced by the following:

11. The Public Service Labour Relations and Employment Board that is established by subsection 4(1) of the Public Service Labour Relations and Employment Board Act, for the purposes of a grievance process under the Public Service Labour Relations Act with respect to an employee of the Canadian Security Intelligence Service, with the exception of any information provided to the Board by the employee

R.S., c. C-23Canadian Security Intelligence Service Act

Marginal note:2003, c. 22, s. 143(3)

449. Subsection 8(3) of the Canadian Security Intelligence Service Act is replaced by the following:

Marginal note:Adjudication of employee grievances

(3) When a grievance is referred to adjudication, the adjudication shall not be heard or determined by any person, other than a full-time member of the Public Service Labour Relations and Employment Board that is established by subsection 4(1) of the Public Service Labour Relations and Employment Board Act.

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

Marginal note:1992, c. 1, s. 72; 2003, c. 22, s. 168; SOR/2003-443

450. Schedule I.1 to the Financial Administration Act is amended by striking out, in column I, the reference to

Public Service Labour Relations Board

Commission des relations de travail dans la fonction publique

and the corresponding reference in column II to “Minister of Canadian Heritage”.

Marginal note:2003, c. 22, s. 247; SOR/2003-444

451. Schedule I.1 to the Act is amended by striking out, in column I, the reference to

Public Service Staffing Tribunal

Tribunal de la dotation de la fonction publique

and the corresponding reference in column II to “Minister of Canadian Heritage”.

452. Schedule I.1 to the Act is amended by amended by adding, in alphabetical order in column I, a reference to

Public Service Labour Relations and Employment Board

Commission des relations de travail et de l’emploi dans la fonction publique

and a corresponding reference in column II to “Minister of Canadian Heritage”.

Marginal note:2003, c. 22, s. 11

453. Schedule IV to the Act is amended by striking out the following:

Public Service Staffing Tribunal

Tribunal de la dotation de la fonction publique

Marginal note:2003, c. 22, s. 11

454. Schedule V to the Act is amended by striking out the following:

Public Service Labour Relations Board

Commission des relations de travail dans la fonction publique

455. Schedule V to the Act is amended by adding the following in alphabetical order:

Public Service Labour Relations and Employment Board

Commission des relations de travail et de l’emploi dans la fonction publique

Marginal note:2006, c. 9, s. 270

456. Part III of Schedule VI to the Act is amended by striking out, in column I, the reference to

Public Service Labour Relations Board

Commission des relations de travail dans la fonction publique

and the corresponding reference in column II to “Chairperson”.

Marginal note:2006, c. 9, s. 270

457. Part III of Schedule VI to the Act is amended by striking out, in column I, the reference to

Public Service Staffing Tribunal

Tribunal de la dotation de la fonction publique

and the corresponding reference in column II to “Chairperson”.

458. Part III of Schedule VI to the Act is amended by adding, in alphabetical order in column I, a reference to

Public Service Labour Relations and Employment Board

Commission des relations de travail et de l’emploi dans la fonction publique

and a corresponding reference in column II to “Chairperson”.

R.S., c. P-21Privacy Act

Marginal note:2003, c. 22, ss. 189 and 248

459. The schedule to the Privacy Act is amended by striking out the following under the heading “OTHER GOVERNMENT INSTITUTIONS”:

Public Service Labour Relations Board

Commission des relations de travail dans la fonction publique

Public Service Staffing Tribunal

Tribunal de la dotation de la fonction publique

460. The schedule to the Act is amended by adding the following in alphabetical order under the heading “OTHER GOVERNMENT INSTITUTIONS”:

Public Service Labour Relations and Employment Board

Commission des relations de travail et de l’emploi dans la fonction publique

R.S., c. P-36Public Service Superannuation Act

Marginal note:2003, c. 22, s. 250

461. Part I of Schedule I to the Public Service Superannuation Act is amended by striking out the following:

Public Service Staffing Tribunal

Tribunal de la dotation de la fonction publique

Marginal note:2003, c. 22, s. 213

462. Part II of Schedule I to the Act is amended by striking out the following:

Public Service Labour Relations Board

Commission des relations de travail dans la fonction publique

463. Part II of Schedule I to the Act is amended by adding the following in alphabetical order:

Public Service Labour Relations and Employment Board

Commission des relations de travail et de l’emploi dans la fonction publique

1991, c. 30Public Sector Compensation Act

464. Schedule I to the Public Sector Compensation Act is amended by striking out the following under the heading “OTHER PORTIONS OF THE PUBLIC SERVICE”:

Public Service Staff Relations Board

Commission des relations de travail dans la Fonction publique

465. Schedule I to the Act is amended by adding the following in alphabetical order under the heading “OTHER PORTIONS OF THE PUBLIC SERVICE”:

Public Service Labour Relations and Employment Board

Commission des relations de travail et de l’emploi dans la fonction publique

1992, c. 33Status of the Artist Act

Marginal note:2003, c. 22, s. 220(E)

466. Paragraph 9(3)(a) of the Status of the Artist Act is replaced by the following:

(a) employees, within the meaning of the Public Service Labour Relations Act, including those determined to be employees by the Public Service Labour Relations and Employment Board, and members of a bargaining unit that is certified by that Board; or

Coordinating Amendments

Marginal note:This Act

467. (1) On the day on which section 298 comes into force, section 370 is replaced by the following:

Marginal note:2003, c. 22, s. 274

370. The heading before section 44 and sections 44 to 52 of the Act are repealed.

(2) If section 333 of this Act comes into force before section 376 of this Act, then, on the day on which that section 376 comes into force, paragraph 226(2)(b) of the Public Service Labour Relations Act is replaced by the following:

(b) give relief in accordance with any of paragraphs 53(2)(b) to (e) or subsection 53(3) of the Canadian Human Rights Act; and

(3) If section 376 comes into force before section 333, then that section 333 is replaced by the following:

333. Paragraph 226(2)(b) of the Act is replaced by the following:

(b) give relief in accordance with any of paragraphs 53(2)(b) to (e) or subsection 53(3) of the Canadian Human Rights Act; and

(4) If section 333 comes into force on the same day as section 376, then that section 333 is deemed to have come into force before that section 376 and subsection (2) applies as a consequence.

(5) On the first day on which both sections 334 and 381 of this Act are in force, the portion of section 232 of the Public Service Labour Relations Act before paragraph (a) is replaced by the following

Marginal note:Decision in respect of policy grievances

232. An adjudicator’s or the Board’s decision in respect of a policy grievance is limited to one or more of the following:

(6) If section 335 comes into force before section 383, then that section 383 is replaced by the following:

383. Subsection 235(6) of the French version of the Act is replaced by the following:

Marginal note:Alinéas 209(1)b), c), c.1) ou d)

(6) Dans le cas du renvoi à l’arbitrage d’un grief individuel d’un type visé aux alinéas 209(1)b), c), c.1) ou d) par un fonctionnaire s’estimant lésé qui ne fait pas partie d’une unité de négociation, les frais d’arbitrage sont à la charge de la Commission.

(7) If section 383 of this Act comes into force before section 335 of this Act, then, on the day on which that section 335 comes into force, subsection 235(6) of the French version of the Public Service Labour Relations Act is replaced by the following:

Marginal note:Alinéas 209(1)b), c), c.1) ou d)

(6) Dans le cas du renvoi à l’arbitrage d’un grief individuel d’un type visé aux alinéas 209(1)b), c), c.1) ou d) par un fonctionnaire s’estimant lésé qui ne fait pas partie d’une unité de négociation, les frais d’arbitrage sont à la charge de la Commission.

(8) If section 335 comes into force on the same day as section 383, then that section 383 is deemed to have come into force before that section 335 and subsection (7) applies as a consequence.

(9) On the day on which section 337 comes into force, section 388 is repealed.

(10) If section 356 of this Act comes into force before section 405 of this Act, then, on the day on which that section 405 comes into force, section 88 of the Public Service Employment Act is replaced by the following:

Marginal note:Complaints

88. The Board is to consider and dispose of complaints made under subsection 65(1) and sections 74, 77, 78 and 83.

(11) If section 405 comes into force before section 356, then that section 356 is replaced by the following:

356. Section 88 of the Act is replaced by the following:

Marginal note:Complaints

88. The Board is to consider and dispose of complaints made under subsection 65(1) and sections 74, 77, 78 and 83.

(12) If section 356 comes into force on the same day as section 405, then that section 356 is deemed to have come into force before that section 405 and subsection (10) applies as a consequence.

(13) If section 357 of this Act comes into force before section 407 of this Act, then, on the day on which that section 407 comes into force, section 89 of the Public Service Employment Act is replaced by the following:

Marginal note:Powers

89. (1) Subject to any limitations that the Governor in Council may establish in the interests of defence or security, the Board has, in relation to a complaint, the power to enter any premises of an employer where work is being or has been done by employees, inspect and view any work, material, machinery, appliances or articles in the premises and require any person in the premises to answer all questions relating to the complaint.

Marginal note:Dismissing complaint

(2) The Board may summarily dismiss a complaint if the complainant fails to comply with any procedures set out in this Act, or the Board’s regulations, in relation to a complaint.

Marginal note:Dismissing complaint

(3) The Board may summarily dismiss a complaint if the deputy head has taken the corrective action that the Board considers appropriate in relation to the complaint.

(14) If section 407 comes into force before section 357, then that section 357 is replaced by the following:

357. Section 89 of the Act is replaced by the following:

Marginal note:Powers

89. (1) Subject to any limitations that the Governor in Council may establish in the interests of defence or security, the Board has, in relation to a complaint, the power to enter any premises of an employer where work is being or has been done by employees, inspect and view any work, material, machinery, appliances or articles in the premises and require any person in the premises to answer all questions relating to the complaint.

Marginal note:Dismissing complaint

(2) The Board may summarily dismiss a complaint if the complainant fails to comply with any procedures set out in this Act, or the Board’s regulations, in relation to a complaint.

Marginal note:Dismissing complaint

(3) The Board may summarily dismiss a complaint if the deputy head has taken the corrective action that the Board considers appropriate in relation to the complaint.

(15) If section 357 comes into force on the same day as section 407, then that section 357 is deemed to have come into force before that section 407 and subsection (13) applies as a consequence.

(16) On the first day on which both sections 358 and 407 of this Act are in force, section 103.1 of the Public Service Employment Act is replaced by the following:

Marginal note:Copy of decision provided

103.1 The Board shall render a decision on a complaint made under subsection 65(1) or section 74, 77, 78 or 83 and provide a copy of it  —  including any written reasons  —  and any accompanying order to the Commission and to each person who exercised the right to be heard on the complaint.

Marginal note:Terminology  — Public Service Employment Act

468. (1) In this section, “the Act” means the Public Service Employment Act.

(2) If section 414 of this Act comes into force before section 349 of this Act, then, on the day on which that section 349 comes into force, the Act is amended by replacing “Tribunal” with “Board” in the following provisions:

(a) subsections 65(1) and (5);

(b) sections 77 to 79;

(c) section 81; and

(d) paragraph 84(c).

(3) If section 414 comes into force on the same day as sections 349, 351, 353 and 355, then those sections 349, 351, 353 and 355 are deemed to have come into force before that section 414.

(4) On the first day on which both sections 414 and 350 of this Act are in force, the Act is amended by replacing “Tribunal” with “Board” in section 76.1.

(5) If section 414 of this Act comes into force before section 352 of this Act, then, on the day on which that section 352 comes into force, the English version of the Act is amended by replacing “Tribunal” with “Board” in section 80.

(6) If section 414 comes into force on the same day as section 352, then that section 352 is deemed to have come into force before that section 414.

Marginal note:2009, c. 2

469. (1) In this section, “other Act” means the Budget Implementation Act, 2009.

(2) If section 367 of this Act comes into force before section 400 of the other Act, then

(a) that section 400 is repealed; and

(b) on the day on which the Public Sector Equitable Compensation Act comes into force, sections 13 and 14 of the Public Service Labour Relations Act are replaced by the following:

Marginal note:Adjudication services

13. The Board is to provide adjudication services that consist of the hearing of applications and complaints made under this Part, the referral of grievances to adjudication in accord­ance with Part 2 and the hearing of matters brought before the Board under Part 3. The Board is also to provide adjudication services in accordance with the Public Sector Equitable Compensation Act.

Marginal note:Mediation services

14. The Board is to provide mediation services that consist of

(a) assisting parties in the negotiation of collective agreements and their renewal;

(b) assisting parties in the management of the relations resulting from the implementation of collective agreements;

(c) mediating in relation to grievances; and

(d) assisting the Chairperson in discharging his or her responsibilities under this Act.

The Board is also to provide mediation services in accordance with the Public Sector Equitable Compensation Act.

(3) If section 400 of the other Act comes into force before section 367 of this Act, then, on the day on which that section 367 comes into force, sections 13 and 14 of the Public Service Labour Relations Act are replaced by the following:

Marginal note:Adjudication services

13. The Board is to provide adjudication services that consist of the hearing of applications and complaints made under this Part, the referral of grievances to adjudication in accordance with Part 2 and the hearing of matters brought before the Board under Part 3. The Board is also to provide adjudication services in accordance with the Public Sector Equitable Compensation Act.

Marginal note:Mediation services

14. The Board is to provide mediation services that consist of

(a) assisting parties in the negotiation of collective agreements and their renewal;

(b) assisting parties in the management of the relations resulting from the implementation of collective agreements;

(c) mediating in relation to grievances; and

(d) assisting the Chairperson in discharging his or her responsibilities under this Act.

The Board is also to provide mediation services in accordance with the Public Sector Equitable Compensation Act.

(4) If section 400 of the other Act comes into force on the same day as section 367 of this Act, then that section 400 is deemed to have come into force before that section 367 and subsection (3) applies as a consequence.

(5) If section 404 of the other Act comes into force before section 376 of this Act, then, on the day on which that section 376 comes into force, paragraph 226(2)(a) of the Public Service Labour Relations Act is replaced by the following:

(a) interpret and apply the Canadian Human Rights Act and any other Act of Parliament relating to employment matters, other than the provisions of the Canadian Human Rights Act that are related to the right to equal pay for work of equal value and the Public Sector Equitable Compensation Act, whether or not there is a conflict between the Act being interpreted and applied and the collective agreement, if any;

(6) If section 376 of this Act comes into force before section 422 of the other Act, then that section 422 is replaced by the following:

422. Paragraph 226(2)(a) of the Act is replaced by the following:

(a) interpret and apply the Canadian Human Rights Act and any other Act of Parliament relating to employment matters, other than the provisions of the Canadian Human Rights Act that are related to the right to equal pay for work of equal value and the Public Sector Equitable Compensation Act, whether or not there is a conflict between the Act being interpreted and applied and the collective agreement, if any;

(7) If section 404 of the other Act comes into force on the same day as section 376 of this Act, then that section 404 is deemed to have come into force before that section 376 and subsection (5) applies as a consequence.

(8) If section 405 of the other Act comes into force before section 390 of this Act, then, on the day on which that section 390 comes into force, subsection 42(1) of the Public Service Labour Relations and Employment Board Act, as enacted by section 365 of this Act, is replaced by the following:

Marginal note:Obligation to prepare report

42. (1) As soon as feasible after the end of each fiscal year, the Board must prepare and submit to the Minister a report on its activities during the immediately preceding fiscal year, other than its activities under the Parliamentary Employment and Staff Relations Act. The report must include a summary of the reports that the Board has received under the Public Sector Equitable Compensation Act during that year.

(9) If section 390 of this Act comes into force before section 405 of the other Act, then,

(a) that section 405 is repealed; and

(b) on the day on which the Public Sector Equitable Compensation Act comes into force, subsection 42(1) of the Public Service Labour Relations and Employment Board Act, as enacted by section 365 of this Act, is replaced by the following:

Marginal note:Obligation to prepare report

42. (1) As soon as feasible after the end of each fiscal year, the Board must prepare and submit to the Minister a report on its activities during the immediately preceding fiscal year, other than its activities under the Parliamentary Employment and Staff Relations Act. The report must include a summary of the reports that the Board has received under the Public Sector Equitable Compensation Act during that year.

(10) If section 405 of the other Act comes into force on the same day as section 390 of this Act, then that section 405 is deemed to have come into force before that section 390 and subsection (8) applies as a consequence.

Coming into Force

Marginal note:Order in council

470. Sections 365 to 466, and the provisions of any Act as they are enacted by this Division, come into force on a day or days to be fixed by order of the Governor in Council.

Division 19R.S., c. S-26Supreme Court Act

471. The Supreme Court Act is amended by adding the following after section 5:

Marginal note:For greater certainty

5.1 For greater certainty, for the purpose of section 5, a person may be appointed a judge if, at any time, they were a barrister or advocate of at least 10 years standing at the bar of a province.

472. The Act is amended by adding the following after section 6:

Marginal note:For greater certainty

6.1 For greater certainty, for the purpose of section 6, a judge is from among the advocates of the Province of Quebec if, at any time, they were an advocate of at least 10 years standing at the bar of that Province.

SCHEDULE(Section 282)

SCHEDULE(Sections 2 and 10)REGIONAL ORGANIZATIONS

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