Archived - Notice of Ways and Means Motion to implement certain provisions of the budget tabled in Parliament on February 11, 2014 and other measures and Explanatory Notes

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1. That it is expedient to implement certain provisions of the budget tabled in Parliament on February 11, 2014 and other measures as follows:

PART 1 AMENDMENTS TO THE INCOME TAX ACT AND TO RELATED LEGISLATION

R.S., c. 1 (5th Supp.)

Income Tax Act

2. Subsection 56(1) of the Income Tax Act is amended by striking out "and" at the end of paragraph (z.2), by adding "and" at the end of paragraph (z.3) and by adding the following after paragraph (z.3):

Tax informant program

(z.4) any amount received in the year by the taxpayer under a contract, to provide information to the Canada Revenue Agency, entered into by the taxpayer under a program administered by the Canada Revenue Agency to obtain information relating to tax non-compliance.

3. Section 60 of the Act is amended by striking out "and" at the end of paragraph (y), by adding "and" at the end of paragraph (z) and by adding the following after paragraph (z):

Tax informant program

(z.1) the total of all amounts each of which is an amount paid in the year as a repayment of an amount that was included, because of paragraph 56(1)(z.4), in computing the taxpayer's income for the year or a preceding taxation year.

4. (1) The portion of subsection 81(4) of the Act after subparagraph (b)(ii) is replaced by the following:

there shall not be included in computing the individual's income derived from the performance of those duties the lesser of $1,000 and the total of those amounts, unless the individual makes a claim under section 118.06 or 118.07 for the year.

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

5. (1) The portion of subparagraph 110.1(1)(d)(iii) of the Act before clause (A) is replaced by the following:

(iii) the gift was made by the corporation in the year or in any of the 10 preceding taxation years to

(2) Subsection (1) applies to gifts made after February 10, 2014.

6. (1) Paragraph (a) of the description of B in subsection 118.01(2) of the Act is replaced by the following:

(a) $15,000, and

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

(3) Subsection 117.1(1) of the Act does not apply in respect of subsection 118.01(2) of the Act for the 2014 taxation year.

7. (1) Subsections 118.06(1) and (2) of the Act are replaced by the following:

Definition of "eligible volunteer firefighting services"

118.06 (1) In this section and section 118.07, "eligible volunteer firefighting services" means services provided by an individual in the individual's capacity as a volunteer firefighter to a fire department that consist primarily of responding to and being on call for firefighting and related emergency calls, attending meetings held by the fire department and participating in required training related to the prevention or suppression of fires, but does not include services provided to a particular fire department if the individual provides firefighting services to the department otherwise than as a volunteer.

Volunteer firefighter tax credit

(2) For the purpose of computing the tax payable under this Part for a taxation year by an individual who performs eligible volunteer firefighting services in the year, there may be deducted the amount determined by multiplying $3,000 by the appropriate percentage for the taxation year if the individual

(a) performs in the year not less than 200 hours of service each of which is an hour of

(i) eligible volunteer firefighting service for a fire department, or

(ii) eligible search and rescue volunteer service for an eligible search and rescue organization; and

(b) provides the certificates referred to in subsections (3) and 118.07(3) as and when requested by the Minister.

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

8. (1) The Act is amended by adding the following after section 118.06:

Definitions

118.07 (1) The following definitions apply in this section and section 118.06.

"eligible search and rescue organization"

« organisme admissible de recherche et sauvetage »

"eligible search and rescue organization" means a search and rescue organization

(a) that is a member of the Search and Rescue Volunteer Association of Canada, the Civil Air Search and Rescue Association or the Canadian Coast Guard Auxiliary; or

(b) whose status as a search and rescue organization is recognized by a provincial, municipal or public authority.

"eligible search and rescue volunteer services"

« services admissibles de volontaire en recherche et sauvetage »

"eligible search and rescue volunteer services" means services, other than eligible volunteer firefighting services, provided by an individual in the individual's capacity as a volunteer to an eligible search and rescue organization that consist primarily of responding to and being on call for search and rescue and related emergency calls, attending meetings held by the organization and participating in required training related to search and rescue services, but does not include services provided to an organization if the individual provides search and rescue services to the organization otherwise than as a volunteer.

Search and rescue volunteer tax credit

(2) For the purpose of computing the tax payable under this Part for a taxation year by an individual who performs eligible search and rescue volunteer services in the year, there may be deducted the amount determined by multiplying $3,000 by the appropriate percentage for the taxation year if the individual

(a) performs in the year not less than 200 hours of service each of which is an hour of

(i) eligible search and rescue volunteer service for an eligible search and rescue organization, or

(ii) eligible volunteer firefighting services for a fire department;

(b) provides the certificates referred to in subsections (3) and 118.06(3) as and when requested by the Minister; and

Certificate

(3) If the Minister so demands, an individual making a claim under this section in respect of a taxation year shall provide to the Minister a written certificate from the team president, or other individual who fulfils a similar role, of each eligible search and rescue organization to which the individual provided eligible search and rescue volunteer services for the year, attesting to the number of hours of eligible search and rescue volunteer services performed in the year by the individual for the particular organization.

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

9. (1) The portion of paragraph (c) of the definition "total ecological gifts" in subsection 118.1(1) of the Act before subparagraph (i) is replaced by the following:

(2) Subsection (1) applies to gifts made after February 10, 2014.

10. (1) The portion of paragraph 118.2(2)(l) of the Act before subparagraph (i) is replaced by the following:

(l) on behalf of the patient who is blind or profoundly deaf or has severe autism, severe diabetes, severe epilepsy or a severe and prolonged impairment that markedly restricts the use of the patient's arms or legs,

(2) Subsection 118.2(2) of the Act is amended by adding the following after paragraph (l.91):

(l.92) as remuneration for the design of an individualized therapy plan for the patient because of the patient's severe and prolonged impairment, if

(i) because of the patient's impairment, an amount would be, if this Act were read without reference to paragraph 118.3(1)(c), deductible under section 118.3 in computing a taxpayer's tax payable under this Part for the taxation year in which the remuneration is paid,

(ii) the plan is required to access public funding for specialized therapy or is prescribed by

(A) a medical doctor or a psychologist, in the case of mental impairment, or

(B) a medical doctor or an occupational therapist, in the case of a physical impairment,

(iii) the therapy set out in the plan is prescribed by and, if undertaken, administered under the general supervision of

(A) a medical doctor or a psychologist, in the case of mental impairment, or

(B) a medical doctor or an occupational therapist, in the case of a physical impairment, and

(iv) the payment is made to a person ordinarily engaged in a business that includes the design of such plans for individuals who are not related to the payee;

(3) Subsections (1) and (2) apply in respect of expenses incurred after 2013.

11. (1) Paragraph 118.3(2)(d) of the Act is replaced by the following:

(d) the amount of that person's tax payable under this Part for the year computed before any deductions under this Division (other than under sections 118 to 118.07 and 118.7).

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

12. (1) The description of C in subsection 118.61(1) of the Act is replaced by the following:

C is the lesser of the value of B and the amount that would be the individual's tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under this section and any of sections 118 to 118.07, 118.3 and 118.7);

(2) Paragraph 118.61(2)(b) of the Act is replaced by the following:

(b) the amount that would be the individual's tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under this section and any of sections 118 to 118.07, 118.3 and 118.7).

(3) Subsections (1) and (2) apply to the 2014 and subsequent taxation years.

13. (1) Paragraph (a) of the description of C in section 118.8 of the Act is replaced by the following:

(a) the amount that would be the spouse's or common-law partner's tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under subsection 118(1) because of paragraph (c) of the description of B in that subsection, under subsection 118(10) or under any of sections 118.01 to 118.07, 118.3, 118.61 and 118.7)

(2) Subparagraph (b)(ii) of the description of C in section 118.8 of the Act is replaced by the following:

(ii) the amount that would be the spouse's or common-law partner's tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under any of sections 118 to 118.07, 118.3, 118.61 and 118.7).

(3) Subsections (1) and (2) apply to the 2014 and subsequent taxation years.

14. (1) The description of B in paragraph 118.81(a) of the Act is replaced by the following:

B is the amount that would be the person's tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under any of sections 118 to 118.07, 118.3, 118.61 and 118.7), and

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

15. (1) Section 118.92 of the Act is replaced by the following:

Ordering of credits

118.92 In computing an individual's tax payable under this Part, the following provisions shall be applied in the following order: subsections 118(1) and (2), section 118.7, subsections 118(3) and (10) and sections 118.01, 118.02, 118.03, 118.031, 118.04, 118.05, 118.06, 118.07, 118.3, 118.61, 118.5, 118.6, 118.9, 118.8, 118.2, 118.1, 118.62 and 121.

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

16. (1) Section 118.94 of the Act is replaced by the following:

Tax payable by non-residents (credits restricted)

118.94 Sections 118 to 118.07 and 118.2, subsections 118.3(2) and (3) and sections 118.6, 118.8 and 118.9 do not apply for the purpose of computing the tax payable under this Part for a taxation year by an individual who at no time in the year is resident in Canada unless all or substantially all the individual's income for the year is included in computing the individual's taxable income earned in Canada for the year.

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

17. (1) The portion of subsection 122.5(3) of the Act before the formula is replaced by the following:

Deemed payment on account of tax

(3) An eligible individual in relation to a month specified for a taxation year who files a return of income for the taxation year is deemed to have paid during the specified month on account of their tax payable under this Part for the taxation year an amount equal to ¼ of the amount, if any, determined by the formula

(2) Subsection 122.5(5) of the Act is replaced by the following:

Only one eligible individual

(5) If an individual is a qualified relation of another individual in relation to a month specified for a taxation year and both those individuals would be, but for this subsection, eligible individuals in relation to the specified month, only the individual that the Minister designates is the eligible individual in relation to the specified month.

(3) Subsections (1) and (2) apply to the 2014 and subsequent taxation years.

18. (1) Paragraph (a) of the definition "flow-through mining expenditure" in subsection 127(9) of the Act is replaced by the following:

(a) that is a Canadian exploration expense incurred by a corporation after March 2014 and before 2016 (including, for greater certainty, an expense that is deemed by subsection 66(12.66) to be incurred before 2016) in conducting mining exploration activity from or above the surface of the earth for the purpose of determining the existence, location, extent or quality of a mineral resource described in paragraph (a) or (d) of the definition "mineral resource" in subsection 248(1),

(2) Paragraphs (c) and (d) of the definition "flow-through mining expenditure" in subsection 127(9) of the Act are replaced by the following:

(c) an amount in respect of which is renounced in accordance with subsection 66(12.6) by the corporation to the taxpayer (or a partnership of which the taxpayer is a member) under an agreement described in that subsection and made after March 2014 and before April 2015, and

(d) that is not an expense that was renounced under subsection 66(12.6) to the corporation (or a partnership of which the corporation is a member), unless that renunciation was under an agreement described in that subsection and made after March 2014 and before April 2015;

(3) Subsections (1) and (2) apply to expenses renounced under a flow-through share agreement entered into after March 2014.

19. (1) Paragraph 127.531(a) of the Act is replaced by the following:

(a) an amount deducted under any of subsections 118(1), (2) and (10), sections 118.01 to 118.07, subsection 118.3(1), sections 118.5 to 118.7 and 119 and subsection 127(1) in computing the individual's tax payable for the year under this Part; or

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

20. (1) Clause 128(2)(e)(iii)(A) of the Act is replaced by the following:

(A) under any of sections 118 to 118.07, 118.2, 118.3, 118.5, 118.6, 118.8 and 118.9,

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

21. (1) Subsection 149.1(4.1) of the Act is amended by striking out "and" at the end of paragraph (d), by adding "and" at the end of paragraph (e) and by adding the following after paragraph (e):

(f) of a registered charity, if it accepts a gift from a foreign state, as defined in section 2 of the State Immunity Act, that is set out on the list referred to in subsection 6.1(2) of that Act.

(2) Subsection 149.1(4.2) of the Act is amended by striking out "or" at the end of paragraph (b), by adding "or" at the end of paragraph (c) and by adding the following after paragraph (c):

(d) if the association accepts a gift from a foreign state, as defined in section 2 of the State Immunity Act, that is set out on the list referred to in subsection 6.1(2) of that Act.

(3) Subsection 149.1(25) of the Act is amended by striking out "or" at the end of paragraph (a), by adding "or" at the end of paragraph (b) and by adding the following after paragraph (b):

(c) the charity or association has accepted a gift from a foreign state, as defined in section 2 of the State Immunity Act, that is set out on the list referred to in subsection 6.1(2) of that Act.

(4) Subsections (1) to (3) apply in respect of gifts accepted after February 10, 2014.

22. (1) Subsection 152(1.2) of the Act is amended by striking out "and" at the end of paragraph (b), by adding "and" at the end of paragraph (c) and by adding the following after paragraph (c):

(d) if the Minister determines the amount deemed by subsection 122.5(3) to have been paid by an individual for a taxation year to be nil, subsection (2) does not apply to the determination unless the individual requests a notice of determination from the Minister.

(2) Subsection 152(10) of the Act is replaced by the following:

Tax deemed not assessed

(10) Notwithstanding any other provision of this section, an amount of tax is deemed, for the purpose of any agreement entered into by or on behalf of the Government of Canada under section 7 of the Federal-Provincial Fiscal Arrangements Act, not to have been assessed under this Act until

(a) the end of the period during which the security is accepted by the Minister, if adequate security for the tax is accepted by the Minister under subsection 220(4.5) or (4.6); or

(b) the amount is collected by the Minister, if information relevant to the assessment of the amount was provided to the Canada Revenue Agency under a contract entered into by a person under a program administered by the Canada Revenue Agency to obtain information relating to tax non-compliance.

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

23. Paragraph 153(1)(s) of the Act is replaced by the following:

(s) an amount described in paragraph 56(1)(r), (z.2) or (z.4), or

24. (1) The portion of subsection 204.81(8.3) of the Act before paragraph (a) is replaced by the following:

Transitional rules

(8.3) If a registered labour-sponsored venture capital corporation notifies the Minister in writing of its intent to revoke its registration under this Part, the following rules apply:

(2) Subsection (1) is deemed to have come into force on November 27, 2013.

25. (1) Paragraph 204.85(3)(d) of the Act is amended by striking out "or" at the end of subparagraph (iv), by adding "or" at the end of subparagraph (v) and by adding the following after subparagraph (v):

(vi) immediately before the amalgamation or merger, one or more of the predecessor corporations is a corporation that has given notification under subsection 204.81(8.3) and one or more of the predecessor corporations is a registered labour-sponsored venture capital corporation that has not given notification under that subsection;

(2) Subsection (1) is deemed to have come into force on November 27, 2013.

26. Subsection 212(1) of the Act is amended by striking out "or" at the end of paragraph (v), by adding "or" at the end of paragraph (w) and by adding the following after paragraph (w):

Tax informant program

(x) a payment of an amount described in paragraph 56(1)(z.4).

27. The portion of subsection 238(1) of the Act before paragraph (a) is replaced by the following:

Offences and punishment

238. (1) Every person who has failed to file or make a return as and when required by or under this Act or a regulation or who has failed to comply with subsection 116(3), 127(3.1) or (3.2), 147.1(7) or 153(1), any of sections 230 to 232, 244.7 and 267 or a regulation made under subsection 147.1(18) or with an order made under subsection (2) is guilty of an offence and, in addition to any penalty otherwise provided, is liable on summary conviction to

28. (1) Paragraph 241(4)(d) of the Act is amended by striking out "or" at the end of subparagraph (xiii), by adding "or" at the end of subparagraph (xiv) and by adding the following after subparagraph (xiv):

(xv) to an official of the Financial Transactions and Reports Analysis Centre of Canada solely for the purpose of enabling the Centre to evaluate the usefulness of information provided by the Centre to the Canada Revenue Agency under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act;

(2) Subsection 241(4) of the Act is amended by striking out "or" at the end of paragraph (p) and by adding the following after paragraph (q):

(r) provide taxpayer information to a person who has – under a program administered by the Canada Revenue Agency to obtain information relating to tax non-compliance – entered into a contract to provide information to the Canada Revenue Agency, to the extent necessary to inform the person of any amount they may be entitled to under the contract and of the status of their claim under the contract; or

(s) provide taxpayer information, solely for the purpose of ensuring compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, to an official of the Financial Transactions and Reports Analysis Centre of Canada, if the information

(i) can reasonably be considered to be relevant to a determination of whether a reporting entity (as defined in section 244.1) has complied with a duty or obligation under Part XV.1, and

(ii) does not directly or indirectly reveal the identity of a client (as defined in section 244.1).

(3) Section 241 of the Act is amended by adding the following after subsection (9.4):

Serious offences

(9.5) An official may provide to a law enforcement officer of an appropriate police organization

(a) taxpayer information, if the official has reasonable grounds to believe that the information will afford evidence of an act or omission in or outside of Canada that, if committed in Canada, would be

(i) an offence under any of

(A) section 3 of the Corruption of Foreign Public Officials Act,

(B) sections 119 to 121, 123 to 125 and 426 of the Criminal Code,

(D) sections 144, 264, 271, 279, 279.02, 281 and 333.1, paragraphs 334(a) and 348(1)(e) and sections 349, 435 and 462.31 of the Criminal Code,

(ii) a terrorism offence or a criminal organization offence, as those terms are defined in section 2 of the Criminal Code, for which the maximum term of imprisonment is 10 years or more, or

(iii) an offence

(A) that is punishable by a minimum term of imprisonment,

(B) for which the maximum term of imprisonment is 14 years or life, or

(I) resulted in bodily harm,

(II) involved the import, export, trafficking or production of drugs, or

(III) involved the use of a weapon; and

(b) information setting out the reasonable grounds referred to in paragraph (a), to the extent that any such grounds rely on information referred to in that paragraph.

29. (1) The Act is amended by adding the following after Part XV:

PART XV.1

REPORTING OF ELECTRONIC FUNDS TRANSFER

Definitions

244.1 The following definitions apply in this Part.

"cash"

« espèces »

"cash" means coins referred to in section 7 of the Currency Act, notes issued by the Bank of Canada pursuant to the Bank of Canada Act that are intended for circulation in Canada or coins or bank notes of countries other than Canada.

"casino"

« casino »

"casino" means an entity that is licensed, registered, permitted or otherwise authorized to do business under any of paragraphs 207(1)(a) to (g) of the Criminal Code and that conducts its business activities in a permanent establishment

(a) that the entity holds out to be a casino and in which roulette or card games are carried on; or

(b) where there is a slot machine, which, for the purposes of this definition, does not include a video lottery terminal.

A casino does not include an entity that is a registered charity and is licensed, registered, permitted or otherwise authorized to carry on business temporarily for charitable purposes, if the business is carried out in the establishment of the casino for not more than two consecutive days at a time under the supervision of the casino.

"client"

« client »

"client" means a particular entity that engages in a financial transaction or activity with a reporting entity and includes an entity on whose behalf the particular entity is acting.

"credit union central"

« centrale de caisses de crédit »

"credit union central" means a central cooperative credit society, as defined in section 2 of the Cooperative Credit Associations Act, or a credit union central or a federation of credit unions or caisses populaires that is regulated by a provincial Act other than one enacted by the legislature of Quebec.

"electronic funds transfer"

« télévirement »

"electronic funds transfer" means the transmission — through any electronic, magnetic or optical device, telephone instrument or computer — of instructions for the transfer of funds, other than the transfer of funds within Canada. In the case of Society for Worldwide Interbank Financial Telecommunication messages, only SWIFT MT 103 messages are included.

"entity"

« entité »

"entity" means an individual, a body corporate, a partnership, a fund or an unincorporated association or organization.

"funds"

« fonds »

"funds" means cash, currency or securities, or negotiable instruments or other financial instruments, in any form, that indicate an entity's title or interest, or for civil law a right, in them.

"money services business"

« entreprise de transfert de fonds ou de vente de titres négociables »

"money services business" means an entity engaged in the business of foreign exchange dealing, of remitting funds or transmitting funds by any means or through any entity or electronic funds transfer network, or of issuing or redeeming money orders, traveller's cheques or other similar negotiable instruments except for cheques payable to a named entity.

"reporting entity"

« entité déclarante »

"reporting entity" means an entity that is

(a) an authorized foreign bank within the meaning of section 2 of the Bank Act in respect of its business in Canada, or a bank to which that Act applies;

(b) a cooperative credit society, savings and credit union or caisse populaire regulated by a provincial Act;

(c) a financial services cooperative regulated by An Act respecting financial services cooperatives, R.S.Q., c. C-67.3, or An Act respecting the Mouvement Desjardins, S.Q. 2000, c. 77;

(d) an association regulated by the Cooperative Credit Associations Act;

(e) a company to which the Trust and Loan Companies Act applies;

(f) a trust company regulated by a provincial Act;

(g) a loan company regulated by a provincial Act;

(h) a money services business;

(i) a casino, including a casino owned or controlled by Her Majesty;

(j) a department or an agent of Her Majesty in right of Canada or of a province that is engaged in the business of accepting deposit liabilities in the course of providing financial services to the public; or

(k) a credit union central in respect of financial services it offers to an entity, other than an entity that is referred to in any of paragraphs (a) to (g) and (j) and is a member of that credit union central.

Electronic funds transfer

244.2 (1) Every reporting entity shall file with the Minister an information return in prescribed form in respect of

(a) the sending out of Canada, at the request of a client, of an electronic funds transfer of $10,000 or more in the course of a single transaction; or

(b) the receipt from outside Canada of an electronic funds transfer, sent at the request of a client, of $10,000 or more in the course of a single transaction.

Transfer within Canada

(2) For greater certainty and subject to subsection (3), subsection (1) does not apply to a reporting entity in respect of an electronic funds transfer if the entity

(a) sends the transfer to an entity in Canada, even if the final recipient is outside Canada; or

(b) receives the transfer from an entity in Canada, even if the initial sender is outside Canada.

Intermediary

(3) Subsection (1) applies to a reporting entity in respect of an electronic funds transfer if the entity

(a) orders another reporting entity to send, at the request of a client, the transfer out of Canada, unless it provides the other reporting entity with the name and address of the client; or

(b) receives the transfer for a beneficiary in Canada from another reporting entity in circumstances where the initial sender is outside Canada, unless the transfer contains the name and address of the beneficiary.

Transfer conducted by agent

(4) If a particular reporting entity is an agent of or is authorized to act on behalf of another reporting entity in respect of an electronic funds transfer, subsection (1) applies, in respect of the transfer, to the other reporting entity and not to the particular reporting entity.

Casino

244.3 An electronic funds transfer in respect of which subsection 244.2(1) applies that occurs in the course of a business, temporarily conducted for charitable purposes in the establishment of a casino by a registered charity carried on for not more than two consecutive days at a time under the supervision of the casino, shall be reported by the supervising casino.

Single transaction

244.4 (1) For the purposes of this Part, two or more electronic funds transfers of less than $10,000 each that are made within 24 consecutive hours and that total $10,000 or more are considered to be made in the course of a single transaction of $10,000 or more if

(a) an individual, other than a trust, who is a reporting entity knows that the transfers are conducted by, or on behalf of, the same entity; and

(b) an employee of a reporting entity, other than an entity described in paragraph (a), knows that the transfers are conducted by, or on behalf of, the same entity.

Exception

(2) For greater certainty, subsection (1) does not apply in respect of an electronic funds transfer sent to two or more beneficiaries if the transfer is requested by

(a) an administrator of a pension fund that is regulated by or under an Act of Parliament or of the legislature of a province;

(b) a department or agent of Her Majesty in right of Canada or of a province;

(c) an incorporated city, town, village, metropolitan authority, township, district, county, rural municipality or other incorporated municipal body or an agent of any of them;

(d) an organization that operates a public hospital and that is designated by the Minister as a hospital authority under the Excise Tax Act, or an agent of such an organization; or

(e) a corporation that has minimum net assets of $75 million on its last audited balance sheet, whose shares are traded on a Canadian stock exchange or a designated stock exchange and that operates in a country that is a member of the Financial Action Task Force on Money Laundering established in 1989.

Foreign currency

244.5 If an electronic funds transfer is carried out by a reporting entity in a foreign currency, the amount of the transfer is to be converted into Canadian dollars using

(a) the official conversion rate of the Bank of Canada for the currency published in the Bank of Canada's Daily Memorandum of Exchange Rates that is in effect at the time of the transfer; or

(b) if no official conversion rate is set out in that publication for the currency, the conversion rate that the entity would use for the currency in the normal course of business at the time of the transfer.

Filing of return

244.6 An information return in respect of an electronic funds transfer that is required to be filed by a reporting entity under this Part shall be filed

(a) not later than five working days after the day of the transfer; and

(b) using electronic media, in the manner specified by the Minister, if the entity has the technical capabilities to do so.

Record keeping

244.7 (1) Every reporting entity that is required to file an information return under this Part shall keep such records as will enable the Minister to determine whether the entity has complied with its duties and obligations under this Part.

Form of records

(2) A record that is required to be kept under this Part may be kept in machine-readable or electronic form if a paper copy can be readily produced from it.

Retention of records

(3) A reporting entity that is required to keep records under this Part in respect of an electronic funds transfer shall retain those records for a period of at least five years from the day of the transfer.

(2) Subsection (1) applies in respect of electronic funds transfers made after 2014.

(3) If subsection 257(3) comes into force, then on the later of January 1, 2015 and the day on which that subsection comes into force, the definition "casino" in section 244.1 of the Act, as enacted by subsection (1), is replaced by the following:

"casino"

« casino »

"casino" means

(a) the government of a province that, in accordance with paragraph 207(1)(a) of the Criminal Code,

(i) in a permanent establishment that is held out to be a casino, conducts and manages a lottery scheme that includes games of roulette or card games, or

(ii) in any other permanent establishment, conducts and manages games that are operated on or through a slot machine, as defined in subsection 198(3) of that Act, or any other similar electronic gaming device, if there are more than 50 of those machines or other devices in the establishment;

(b) the government of a province that, in accordance with paragraph 207(1)(a) of the Criminal Code, conducts and manages a lottery scheme, other than bingo or the sale of lottery tickets, that is accessible to the public through the Internet or other digital network, except if the network is an internal network within an establishment referred to in subparagraph (a)(ii);

(c) an organization that, in accordance with paragraph 207(1)(b) of the Criminal Code, in a permanent establishment that is held out to be a casino, conducts and manages a lottery scheme that includes games of roulette or card games, unless the organization is a registered charity and the lottery scheme is conducted or managed for a period of not more than two consecutive days at a time; and

(d) the board of a fair or of an exhibition, or the operator of a concession leased by such a board, that, in accordance with paragraph 207(1)(c) of the Criminal Code, in a permanent establishment that is held out to be a casino, conducts and manages a lottery scheme that includes games of roulette or card games.

(4) If subsection 257(2) comes into force, then on the later of January 1, 2015 and the day on which that subsection comes into force,

(a) the definition "money services business" in section 244.1 of the Act, as enacted by subsection (1), is replaced by the following:

"money services business"

« entreprise de transfert de fonds ou de vente de titres négociables »

"money services business" means an entity

(a) that has a place of business in Canada and that is engaged in the business of providing at least one of the following services:

(i) foreign exchange dealing,

(ii) remitting funds or transmitting funds by any means or through any entity or electronic funds transfer network,

(iii) issuing or redeeming money orders, traveller's cheques or other similar negotiable instruments except for cheques payable to a named entity,

(iv) dealing in virtual currencies, as defined by regulation, or

(v) a prescribed service; or

(b) that does not have a place of business in Canada, that is engaged in the business of providing at least one of the following services that is directed at entities in Canada, and that provides those services to their customers in Canada:

(i) foreign exchange dealing,

(ii) remitting funds or transmitting funds by any means or through any entity or electronic funds transfer network,

(iii) issuing or redeeming money orders, traveller's cheques or other similar negotiable instruments except for cheques payable to a named entity,

(iv) dealing in virtual currencies, as defined by regulation, or

(v) a prescribed service.

(b) section 244.2 of the Act, as enacted by subsection (1), is amended by adding the following after subsection (4):

Entities outside Canada

(5) Subsection (1) does not apply to an entity described in paragraph (b) of the definition "money services business" in respect of the services it provides to entities outside Canada.

30. (1) The definition "credit union" in subsection 248(1) of the Act is replaced by the following:

"credit union"

« caisse de crédit »

"credit union" has the meaning assigned by subsection 137(6), except for the purposes of Part XV.1;

(2) Paragraph 248(37)(c) of the Act is replaced by the following:

(c) of an object referred to in subparagraph 39(1)(a)(i.1), other than an object acquired under a gifting arrangement (as defined in subsection 237.1(1)) that is a tax shelter;

(3) Subsection (1) comes into force on January 1, 2015.

(4) Subsection (2) applies to gifts made after February 10, 2014.

R.S., c. F-11

Financial Administration Act

31. The Financial Administration Act is amended by adding the following after section 161:

Meaning of "listed tax law"

162. (1) In this section, "listed tax law" means

(a) the Income Tax Act and the Income Tax Regulations;

(b) the Income Tax Conventions Interpretation Act;

(d) the Excise Act, 2001 and any regulations made under that Act;

(e) the Air Travelers Security Charge Act and any regulations made under that Act;

(f) the Excise Act and any regulations made under that Act; or

(g) the Customs Tariff and any regulations made under that Act.

Tabling of list — legislative proposals

(2) The Minister shall table in the House of Commons, on or before the fifth day on which the House of Commons is sitting after October 31 of a particular fiscal year, a list of the specific legislative proposals to amend listed tax laws

(a) that the Government publicly announced after the last general election and before April 1 of the fiscal year preceding the particular fiscal year; and

(b) that have not been enacted or made before the date of tabling in substantially the same form as the proposal or in a form that reflects consultations and deliberations relating to the proposal.

Exception

(3) The list referred to in subsection (2) shall not include a specific legislative proposal that has been publicly withdrawn by the Government or an announcement of a general intention to develop a specific legislative proposal.

No legislative proposals

(4) The obligation to table does not apply in the absence of any specific legislative proposals to be included in the list referred to in subsection (2).

C.R.C., c. 945

Income Tax Regulations

32. Section 103 of the Income Tax Regulations is amended by adding the following after subsection (8):

(9) The amount to be deducted or withheld by a person from any payment of an amount described in paragraph 56(1)(z.4) of the Act is

(a) in the case of a payment to a resident of Quebec, 30% of the payment; or

(b) in the case of a payment to a resident of Canada who is not a resident of Quebec, 50% of the payment.

33. (1) The portion of paragraph 108(1.1)(a) of the Regulations before subparagraph (i) is replaced by the following:

(a) equal to or greater than $25,000 and less than $100,000, all amounts deducted or withheld from payments described in the definition "remuneration" in subsection 100(1) that are made in a month in the particular calendar year by the employer shall be remitted to the Receiver General

(2) The portion of paragraph 108(1.1)(b) of the Regulations before subparagraph (i) is replaced by the following:

(b) equal to or greater than $100,000, all amounts deducted or withheld from payments described in the definition "remuneration" in subsection 100(1) that are made in a month in the particular calendar year by the employer shall be remitted to the Receiver General on or before the third day, not including a Saturday or holiday, after the end of the following periods in which the payments were made,

(3) Paragraph 108(1.11)(a) of the Regulations is replaced by the following:

(a) in accordance with subsection (1), if the average monthly withholding amount of the employer for the calendar year preceding the particular calendar year is less than $25,000 and the employer has advised the Minister that the employer has so elected; or

(4) The portion of paragraph 108(1.11)(b) of the Regulations before subparagraph (i) is replaced by the following:

(b) if the average monthly withholding amount of the employer for the calendar year preceding the particular calendar year is equal to or greater than $25,000 and less than $100,000 and the employer has advised the Minister that the employer has so elected,

(5) Subparagraph 108(1.2)(a)(iii) of the Regulations is replaced by the following:

(iii) subsection 82(1) of the Employment Insurance Act,

(6) Subsections (1) to (4) apply to amounts deducted or withheld after 2014.

34. Paragraph 202(2)(m) of the Regulations is replaced by the following:

(m) a payment described in paragraph 212(1)(v) or (x) of the Act,

35. (1) Section 6708 of the Regulations is replaced by the following:

6708. For the purposes of paragraph 204.8(2)(b), section 27.2 of the Community Small Business Investment Funds Act, 1992, S.O. 1992, c. 18, is a prescribed wind-up rule.

(2) Subsection (1) is deemed to have come into force on November 27, 2013.

36. (1) Subsection 8517(3.01) of the Regulations is replaced by the following:

(3.001) Subsection (3.01) applies in respect of a transfer of an amount on behalf of an individual in full or partial satisfaction of the individual's entitlement to benefits under a defined benefit provision of a registered pension plan if

(a) the individual is an employee or a former employee of an employer (or a predecessor employer of the employer) that was a participating employer under the provision;

(b) lifetime retirement benefits paid or payable to the individual under the provision have been reduced because the assets of the plan are insufficient to pay the benefits provided under the provision of the plan as registered;

(d) either

(i) the plan is not an individual pension plan and the reduction in the lifetime retirement benefits paid or payable to the individual has been approved under the Pension Benefits Standards Act, 1985 or a similar law of a province, or

(ii) the plan is an individual pension plan, the amount transferred from the plan on behalf of the individual is the last payment from the plan to the individual and all the property held in connection with the plan is distributed from the plan on behalf of plan members within 90 days of the transfer.

(3.01) If this subsection applies, the description of A in subsection (1) is to be read as follows in respect of the transfer:

A is the amount of the individual's lifetime retirement benefits under the provision commuted in connection with the transfer, as determined under subsection (4), but without reference to the benefit reduction referred to in paragraph (3)(c) or (3.001)(b), as the case may be; and

(2) Subsection (1) applies in respect of transfers from registered pension plans made after 2012.

37. (1) Section 9000 of the Regulations and the heading "Prescribed Trust not a Financial Institution" before it are replaced by the following:

Prescribed Person not a Financial Institution

9000. For the purposes of paragraph (e) of the definition "financial institution" in subsection 142.2(1) of the Act, the following are prescribed persons:

(a) the Business Development Bank of Canada;

(b) BDC Capital Inc.; and

(i) the trust is a related segregated fund trust (within the meaning assigned by paragraph 138.1(1)(a) of the Act),

(ii) the trust is deemed, under paragraph 138.1(1)(a) of the Act, to have been created at a time that is not more than two years before that particular time, and

(iii) the cost of the trustee's interest (as determined by paragraph 138.1(1)(c) and (d) of the Act) in the trust does not exceed $5,000,000.

(2) Subsection (1) applies to taxation years that end after November 29, 2013.

C.R.C., c. 385

Canada Pension Plan Regulations

38. (1) The portion of paragraph 8(1.1)(a) of the Canada Pension Plan Regulations before subparagraph (i) is replaced by the following:

(a) equal to or greater than $25,000 and less than $100,000, the employer shall remit the employee's contribution and the employer's contribution to the Receiver General

(2) The portion of paragraph 8(1.1)(b) of the Regulations before subparagraph (i) is replaced by the following:

(b) equal to or greater than $100,000, the employer shall remit the employee's contribution and the employer's contribution to the Receiver General on or before the third day, not including a Saturday or holiday, after the end of the following periods in which remuneration was paid,

(3) Paragraph 8(1.11)(a) of the Regulations is replaced by the following:

(4) The portion of paragraph 8(1.11)(b) of the Regulations before subparagraph (i) is replaced by the following:

(5) Subsections (1) to (4) apply to amounts deducted or withheld after 2014.

SOR/97-33

Insurable Earnings and Collection of Premiums Regulations

39. (1) The portion of paragraph 4(2)(a) of the Insurable Earnings and Collection of Premiums Regulations before subparagraph (i) is replaced by the following:

(a) if the average monthly withholding amount of an employer for the second year preceding a particular year is equal to or greater than $25,000 and less than $100,000, the employer shall remit employees' premiums and the employer's premiums payable under the Act and these Regulations to the Receiver General

(2) The portion of paragraph 4(2)(b) of the Regulations before subparagraph (i) is replaced by the following:

(b) if the average monthly withholding amount of an employer for the second year preceding a particular year is equal to or greater than $100,000, the employer shall remit employees' premiums and the employer's premiums payable under the Act and these Regulations to the Receiver General on or before the third day, not including a Saturday or holiday, after the end of each of the following periods in which insurable earnings were paid, namely,

(3) Paragraph 4(3)(a) of the Regulations is replaced by the following:

(a) in accordance with subsection (1), if the average monthly withholding amount of the employer for the year preceding the particular year is less than $25,000 and the employer has advised the Minister that the employer has so elected; and

(4) The portion of paragraph 4(3)(b) of the Regulations before subparagraph (i) is replaced by the following:

(b) if the average monthly withholding amount of the employer for the year preceding the particular year is equal to or greater than $25,000 and less than $100,000 and the employer has advised the Minister that the employer has so elected,

(5) Subsections (1) to (4) apply to amounts deducted or withheld after 2014.

PART 2

R.S., c. E-15

AMENDMENTS TO THE EXCISE TAX ACT (GST/HST MEASURES)

2007, c. 18, s. 6(2)

40. (1) Paragraph (c) of the definition "qualifying member" in subsection 156(1) of the Excise Tax Act is replaced by the following:

(i) the registrant has property (other than financial instruments and property having a nominal value) and has last manufactured, produced, acquired or imported all or substantially all of its property (other than financial instruments and property having a nominal value) for consumption, use or supply exclusively in the course of commercial activities of the registrant,

(ii) the registrant has no property (other than financial instruments and property having a nominal value) and has made supplies and all or substantially all of the supplies made by the registrant are taxable supplies, or

(iii) the registrant has no property (other than financial instruments and property having a nominal value) and has not made taxable supplies and it is reasonable to expect that

(A) the registrant will be making supplies throughout the next 12 months,

(B) all or substantially all of those supplies will be taxable supplies, and

(C) all or substantially all of the property (other than financial instruments and property having a nominal value) to be manufactured, produced, acquired or imported by the registrant within the next 12 months will be for consumption, use or supply exclusively in the course of commercial activities of the registrant.

2007, c. 18, s. 6(11)

(2) Subsection 156(2) of the Act is replaced by the following:

Election for nil consideration

(2) For the purposes of this Part, if at any time after 2014 a person that is a specified member of a qualifying group files an election made jointly by the person and another specified member of the group, every taxable supply made between the person and the other specified member at a time when the election is in effect is deemed to have been made for no consideration.

(3) Section 156 of the Act is amended by adding the following after subsection (2):

Elections filed before 2015

(2.01) For the purposes of this section, if an election made under this section has been filed by any person before January 1, 2015, the election is deemed never to have been filed.

1993, c. 27, s. 27(4)

(4) Subsection 156(4) of the Act is replaced by the following:

Form of election and revocation

(4) An election under subsection (2) made jointly by a particular specified member of a qualifying group and another specified member of the group and a revocation of the election by those specified members shall

(a) be made in prescribed form containing prescribed information and specify the day (in this subsection referred to as the "effective day") on which the election or revocation is to become effective; and

(b) be filed with the Minister in prescribed manner on or before

(i) the particular day that is the earlier of

(A) the day on or before which the particular specified member must file a return under Division V for the reporting period of the particular specified member that includes the effective day, and

(B) the day on or before which the other specified member must file a return under Division V for the reporting period of the other specified member that includes the effective day, or

(ii) any day after the particular day that the Minister may allow.

(5) Section 156 of the Act is amended by adding the following after subsection (4):

Joint and several liability

(5) A particular person and another person are jointly and severally, or solidarily, liable for all obligations under this Part that result upon, or as a consequence of, a failure to account for or pay as and when required under this Part an amount of net tax of the particular person or of the other person if that tax is attributable to a supply made at any time between the particular person and the other person and if

(a) an election under subsection (2) made jointly by the particular person and the other person

(i) is in effect at that time, or

(ii) ceased to be in effect before that time but the particular person and the other person are conducting themselves as if the election were in effect at that time; or

(b) the particular person and the other person purport to have jointly made an election under subsection (2) before that time and are conducting themselves as if an election under subsection (2) made jointly by the particular person and the other person were in effect at that time.

(6) Subsections (1) and (3) come into force on January 1, 2015.

(7) Subsection (2) applies to any supply made after 2014.

(8) Subsection (4) applies in respect of an election or a revocation the effective date of which is after 2014 and in respect of an election that is in effect on January 1, 2015, except that for an election that is in effect before 2015 and for a revocation of that election that is to become effective before 2016, paragraph 156(4)(b) of the Act, as enacted by subsection (4), is to be read as follows:

(b) be filed with the Minister in prescribed manner after 2014 and before January 1, 2016 or any later day that the Minister may allow.

(9) Subsection (5) applies in respect of any supply made after 2014.

2007, c. 18, s. 13(1)

41. (1) Subparagraph 178.8(7)(c)(ii) of the Act is replaced by the following:

(ii) the amount of the rebate, abatement or refund shall be added in determining the net tax of the constructive importer for the reporting period in which the tax adjustment note is received, to the extent that the amount has been included in determining an input tax credit claimed by the constructive importer in a return filed for a preceding reporting period or the constructive importer is or was entitled to be compensated under a warranty for loss suffered because of any of the circumstances that gave rise to the rebate, abatement or refund by receiving a supply of replacement parts, or replacement property, that are goods included in section 5 of Schedule VII, and

(2) Subsection (1) applies to goods imported on or after October 3, 2003 and to goods imported before that day that were not accounted for under section 32 of the Customs Act before that day.

1993, c. 27, s. 44(1)

42. Subparagraph 179(2)(c)(i) of the Act is replaced by the following:

(i) states the consignee's name and registration number assigned under section 241, and

43. (1) The Act is amended by adding the following after section 180:

Restriction on recovery

180.01 If, under paragraph 180(d), a particular person is deemed to have paid tax equal to the tax paid by a non-resident person, the following rules apply:

(a) subsection 232(3) does not apply in respect of the tax paid by the non-resident person; and

(b) no portion of the tax paid by the non-resident person shall be rebated, refunded or remitted to the non-resident person, or shall otherwise be recovered by the non-resident person, under this or any other Act of Parliament.

(2) Subsection (1) is deemed to have come into force on January 17, 2014.

1997, c. 10, s. 44(1)

44. (1) Subsection 225(3.1) of the Act is replaced by the following:

Restriction

(3.1) An amount shall not be included in the total for B in the formula set out in subsection (1) for a reporting period of a person to the extent that, before the end of the period, the amount

(a) is included in an adjustment, refund or credit for which a credit note referred to in subsection 232(3) has been received by the person or a debit note referred to in that subsection has been issued by the person; or

(b) was otherwise rebated, refunded or remitted to the person, or was otherwise recovered by the person, under this or any other Act of Parliament.

(2) Subsection (1) is deemed to have come into force on April 23, 1996.

2013, c. 34, s. 416(1)

45. (1) Subsection 225.1(4.1) of the Act is replaced by the following:

Restriction

(4.1) An amount is not to be included in the total for B in the formula set out in subsection (2) for a reporting period of a charity to the extent that, before the end of the period, the amount

(a) is included in an adjustment, refund or credit for which a credit note referred to in subsection 232(3) has been received by the charity or a debit note referred to in that subsection has been issued by the charity; or

(b) was otherwise rebated, refunded or remitted to the charity, or was otherwise recovered by the charity, under this or any other Act of Parliament.

(2) Subsection (1) applies for the purpose of determining the net tax of a charity for reporting periods beginning after 1996.

1993, c. 27, s. 93(1)

46. (1) Paragraph 232(3)(c) of the Act is replaced by the following:

(c) the amount shall be added in determining the net tax of the other person for the reporting period of the other person in which the debit note is issued to the particular person or the credit note is received by the other person, to the extent that the amount has been included in determining an input tax credit claimed by the other person in a return filed for a preceding reporting period of the other person; and

(2) Subsection (1) is deemed to have come into force on April 23, 1996.

47. Section 241 of the Act is amended by adding the following after subsection (1.2):

Notice of intent

(1.3) If the Minister has reason to believe that a person that is not registered under this Subdivision is required to be registered for the purposes of this Part and has failed to apply for registration under this Subdivision as and when required, the Minister may send a notice in writing (in this section referred to as a "notice of intent") to the person that the Minister proposes to register the person under subsection (1.5).

Representations to Minister

(1.4) Upon receipt of a notice of intent, a person shall apply for registration under this Subdivision or establish to the satisfaction of the Minister that the person is not required to be registered for the purposes of this Part.

Registration by Minister

(1.5) If, after 60 days after the particular day on which a notice of intent was sent by the Minister to a person, the person has not applied for registration under this Subdivision and the Minister is not satisfied that the person is not required to be registered for the purposes of this Part, the Minister may register the person and, upon doing so, shall assign a registration number to the person and notify the person in writing of the registration number and the effective date of the registration, which effective date is not to be earlier than 60 days after the particular day.

2010, c. 12, s. 76(1)

48. (1) The heading "Information Return for Financial Institutions" before section 273.2 of the Act is replaced by the following:

Information Returns

(2) Subsection (1) comes into force on January 1, 2015.

49. (1) The Act is amended by adding the following after section 273.2:

Electronic funds transfer

273.3 For greater certainty, information obtained by the Minister under Part XV.1 of the Income Tax Act may be used for the purposes of this Part.

(2) Subsection (1) comes into force on January 1, 2015.

50. (1) Paragraph 295(5)(d) of the Act is amended by striking out "or" at the end of subparagraph (vi), by adding "or" at the end of subparagraph (vii) and by adding the following after subparagraph (vii):

(viii) to an official of the Financial Transactions and Reports Analysis Centre of Canada solely for the purpose of enabling the Centre to evaluate the usefulness of information provided by the Centre to the Canada Revenue Agency under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act;

(2) Subsection 295(5) of the Act is amended by striking out "or" at the end of paragraph (m), by adding "or" at the end of paragraph (n) and by adding the following after paragraph (n):

(o) provide confidential information to a person who has — under a program administered by the Canada Revenue Agency to obtain information relating to tax non-compliance — entered into a contract to provide information to the Canada Revenue Agency, to the extent necessary to inform the person of any amount they may be entitled to under the contract and of the status of their claim under the contract.

(3) Section 295 of the Act is amended by adding the following after subsection (5.03):

Serious offences

(5.04) An official may provide to a law enforcement officer of an appropriate police organization

(a) confidential information, if the official has reasonable grounds to believe that the information will afford evidence of an act or omission in or outside of Canada that, if committed in Canada, would be

(i) an offence under any of

(A) section 3 of the Corruption of Foreign Public Officials Act,

(B) sections 119 to 121, 123 to 125 and 426 of the Criminal Code,

(D) sections 144, 264, 271, 279, 279.02, 281 and 333.1, paragraphs 334(a) and 348(1)(e) and sections 349, 435 and 462.31 of the Criminal Code,

(ii) a terrorism offence or a criminal organization offence, as those terms are defined in section 2 of the Criminal Code, for which the maximum term of imprisonment is 10 years or more, or

(iii) an offence

(A) that is punishable by a minimum term of imprisonment,

(B) for which the maximum term of imprisonment is 14 years or life, or

(I) resulted in bodily harm,

(II) involved the import, export, trafficking or production of drugs, or

(III) involved the use of a weapon; and

(b) information setting out the reasonable grounds referred to in paragraph (a), to the extent that any such grounds rely on information referred to in that paragraph.

51. The Act is amended by adding the following after section 300:

Amount deemed not assessed

300.1 Despite any other provision of this Part, an amount in respect of which particular information relevant to its assessment was provided to the Canada Revenue Agency under a contract entered into by a person under a program administered by the Canada Revenue Agency to obtain information relating to tax non-compliance is, until the amount is collected by the Minister, deemed for the purpose of any agreement entered into by or on behalf of the Government of Canada under section 8.3 of the Federal-Provincial Fiscal Arrangements Act not to be payable or remittable under this Part as a result of an assessment.

2007, c. 29, s. 50(1)

52. (1) The portion of the definition "practitioner" in section 1 of Part II of Schedule V to the Act before paragraph (b) is replaced by the following:

"practitioner", in respect of a supply of optometric, chiropractic, physiotherapy, chiropodic, podiatric, osteopathic, audiological, speech-language pathology, occupational therapy, psychological, midwifery, dietetic, acupuncture or naturopathic services, means a person who

(a) practises the profession of optometry, chiropractic, physiotherapy, chiropody, podiatry, osteopathy, audiology, speech-language pathology, occupational therapy, psychology, midwifery, dietetics, acupuncture or naturopathy as a naturopathic doctor, as the case may be,

(2) Subsection (1) applies to any supply made after February 11, 2014.

53. (1) Section 7 of Part II of Schedule V to the Act is amended by striking out "and" at the end of paragraph (j) and by adding the following after paragraph (k):

(l) acupuncture services; and

(m) naturopathic services.

(2) Subsection (1) applies to any supply made after February 11, 2014.

2008, c. 28, s. 84(1)

54. (1) The portion of section 14 of Part II of Schedule V to the Act before paragraph (b) is replaced by the following:

14. A supply (other than a zero-rated supply or a prescribed supply) of a training service, or of a service of designing a training plan, if

(a) the training is specially designed to assist individuals with a disorder or disability in coping with the effects of the disorder or disability or to alleviate or eliminate those effects and is given or, in the case of a service of designing a training plan, is to be given to a particular individual with the disorder or disability or to another individual who provides personal care or supervision to the particular individual otherwise than in a professional capacity; and

2008, c. 28, s. 84(1)

(2) Subparagraphs 14(b)(i) and (ii) of Part II of Schedule V to the Act are replaced by the following:

(i) a person acting in the capacity of a practitioner, medical practitioner, social worker or registered nurse, and in the course of a professional-client relationship between the person and the particular individual, has certified in writing that the training is or, in the case of a service of designing a training plan, will be an appropriate means to assist the particular individual in coping with the effects of the disorder or disability or to alleviate or eliminate those effects,

(ii) a prescribed person, or a member of a prescribed class of persons, has, subject to prescribed circumstances or conditions, certified in writing that the training is or, in the case of a service of designing a training plan, will be an appropriate means to assist the particular individual in coping with the effects of the disorder or disability or to alleviate or eliminate those effects, or

(3) Subsections (1) and (2) apply to any supply made after February 11, 2014.

2008, c. 28, s. 84(1)

55. (1) The portion of section 15 of Part II of Schedule V to the Act before paragraph (a) is replaced by the following:

15. A training service or a service of designing a training plan is not included in section 14 if the training is similar to training ordinarily given to individuals who

(2) Subsection (1) applies to any supply made after February 11, 2014.

56. (1) Section 1 of Part V.1 of Schedule V to the Act is amended by striking out "or" at the end of paragraph (m), by adding "or" at the end of paragraph (n) and by adding the following after paragraph (n):

(o) a parking space if

(i) the supply is made for consideration by way of lease, licence or similar arrangement in the course of a business carried on by the charity,

(ii) at the time the supply is made, it is reasonable to expect that the specified parking area (as defined in section 1 of Part VI) in relation to the supply will be used, during the calendar year in which the supply is made, primarily by individuals who are accessing a property of, or a facility or establishment operated by, a particular person that is a municipality, a school authority, a hospital authority, a public college or a university, and

(iii) any of the following conditions is met:

(A) under the governing documents of the charity, the charity is expected to use a significant part of its income or assets for the benefit of one or more of the particular persons referred to in subparagraph (ii),

(B) the charity and any particular person referred to in subparagraph (ii) have entered into one or more agreements with each other or with other persons in respect of the use by the individuals referred to in subparagraph (ii) of parking spaces in the specified parking area (as defined in section 1 of Part VI) in relation to the supply, or

(C) any particular person referred to in subparagraph (ii) performs any function or activity in respect of supplies by the charity of parking spaces in the specified parking area (as defined in section 1 of Part VI) in relation to the supply.

(2) Subsection (1) applies to any supply made after March 21, 2013, except that a supply of a parking space made by a charity after that day and on or before January 24, 2014 is only included in paragraph (o) of section 1 of Part V.1 of Schedule V to the Act, as enacted by subsection (1), if it also meets the following conditions:

(a) the parking space is situated at a particular property for which, at the time the supply is made, it is reasonable to expect that the parking spaces at the particular property will be used, during the calendar year in which the supply is made, primarily by individuals who are accessing a property of, or a facility or establishment operated by, a particular person that is a municipality, a school authority, a hospital authority, a public college or a university; and

(b) any of the following conditions is met:

(i) under the governing documents of the charity, the charity is expected to use a significant part of its income or assets for the benefit of one or more of the particular persons referred to in paragraph (a),

(ii) the charity and any particular person referred to in paragraph (a) have entered into one or more agreements with each other or with other persons in respect of the use of the parking spaces at the particular property by the individuals referred to in that paragraph, or

(iii) any particular person referred to in paragraph (a) performs any function or activity in respect of the supplies by the charity of parking spaces at the particular property.

1997, c. 10, s. 102(1)

57. (1) Section 5 of Part V.1 of Schedule V to the Act is replaced by the following:

5. A supply made by a charity of any property or service if all or substantially all of the supplies of the property or service by the charity 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 charity.

(2) Subsection (1) applies to any supply made after March 21, 2013.

58. (1) Part V.1 of Schedule V to the Act is amended by adding the following after section 6:

7. A supply (other than a supply by way of sale) of a parking space in a parking lot made by a charity if

(a) at the time the supply is made, either

(i) all of the parking spaces in the specified parking area (as defined in section 1 of Part VI) in relation to the supply are reserved for use by individuals who are accessing a public hospital, or

(ii) it is reasonable to expect that the specified parking area (as defined in section 1 of Part VI) in relation to the supply will be used, during the calendar year in which the supply is made, primarily by individuals who are accessing a public hospital;

(b) it is not the case that

(i) all or substantially all of the parking spaces in the specified parking area (as defined in section 1 of Part VI) in relation to the supply are reserved for use by persons other than individuals accessing a public hospital otherwise than in a professional capacity,

(ii) the supply or the amount of the consideration for the supply is conditional on the parking space being used by a person other than an individual accessing a public hospital otherwise than in a professional capacity, or

(iii) the agreement for the supply is entered into in advance and, under the terms of the agreement for the supply, use of a parking space in the specified parking area (as defined in section 1 of Part VI) in relation to the supply is made available for a total period of time that is more than 24 hours and the use is to be by a person other than an individual accessing a public hospital otherwise than in a professional capacity; and

(c) no election made by the charity under section 211 of the Act is in effect, in respect of the property on which the parking space is situated, at the time tax would become payable under Part IX of the Act in respect of the supply if it were a taxable supply.

(2) Subsection (1) applies to any supply made after March 21, 2013.

(3) If a charity collected an amount as or on account of tax under Part IX of the Act in respect of a supply of a parking space made by the charity after March 21, 2013 and on or before January 24, 2014 and, by reason of the application of subsection (1), no tax was collectible by the charity in respect of the supply, then, for the purpose of determining the net tax of the charity, the amount is deemed not to have been collected as or on account of tax under Part IX of the Act.

(4) If an amount is deemed not to have been collected by a person as or on account of tax under subsection (3) and that amount was taken into consideration in assessing the net tax of the person under section 296 of the Act for a reporting period of the person, the person is entitled until the day that is one year after the day on which this Act receives royal assent to request in writing that the Minister of National Revenue make an assessment, reassessment or additional assessment for the purpose of taking into account that the amount is deemed not to have been collected by the person as or on account of tax and, on receipt of the request, the Minister must with all due dispatch

(a) consider the request; and

(b) under section 296 of the Act assess, reassess or make an additional assessment of the net tax of the person for any reporting period of the person and of any interest, penalty or other obligation of the person, but only to the extent that the assessment, reassessment or additional assessment may reasonably be regarded as relating to the amount.

59. (1) Section 1 of Part VI of Schedule V to the Act is amended by adding the following in alphabetical order:

"specified parking area" in relation to a supply of a parking space means all of the parking spaces that could be chosen for use in parking under the agreement for the supply of the parking space if all of those parking spaces were vacant and none were reserved for specific users;

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

60. (1) Part VI of Schedule V to the Act is amended by adding the following after section 25:

25.1 A supply (other than a supply by way of sale) of a parking space in a parking lot made by a public sector body if

(a) at the time the supply is made, either

(i) all of the parking spaces in the specified parking area in relation to the supply are reserved for use by individuals who are accessing a public hospital, or

(ii) it is reasonable to expect that the specified parking area in relation to the supply will be used, during the calendar year in which the supply is made, primarily by individuals who are accessing a public hospital;

(b) it is not the case that

(i) all or substantially all of the parking spaces in the specified parking area in relation to the supply are reserved for use by persons other than individuals accessing a public hospital otherwise than in a professional capacity,

(iii) the agreement for the supply is entered into in advance and, under the terms of the agreement for the supply, use of a parking space in the specified parking area in relation to the supply is made available for a total period of time that is more than 24 hours and the use is to be by a person other than an individual accessing a public hospital otherwise than in a professional capacity; and

(c) no election made by the public sector body under section 211 of the Act is in effect, in respect of the property on which the parking space is situated, at the time tax would become payable under Part IX of the Act in respect of the supply if it were a taxable supply.

(2) Subsection (1) applies to any supply made after January 24, 2014.

61. (1) Part II of Schedule VI to the Act is amended by adding the following after section 9:

9.1 A supply of eyewear that is specially designed to treat or correct a defect of vision by electronic means, if the eyewear is supplied on the written order of a person that is entitled under the laws of a province to practise the profession of medicine or optometry for the treatment or correction of a defect of vision of a consumer who is named in the order.

(2) Subsection (1) applies to any supply made after February 11, 2014.

PART 3 AMENDMENTS TO THE EXCISE ACT, 2001, THE EXCISE TAX ACT (OTHER THAN GST/HST MEASURES) AND THE AIR TRAVELLERS SECURITY CHARGE ACT

2002, c. 22

Excise Act, 2001

Amendments to the Act

62. (1) The portion of subsection 42(1) of the French version of the Excise Act, 2001 before paragraph (a) is replaced by the following:

Imposition

42. (1) Un droit sur les produits du tabac fabriqués au Canada ou importés et sur le tabac en feuilles importé est imposé aux taux prévus à l'annexe 1 et est exigible :

(2) Subsection (1) is deemed to have come into force on February 12, 2014.

63. (1) The portion of section 43 of the French version of the Act before paragraph (a) is replaced by the following:

Droit additionnel sur les cigares

43. Est imposé aux taux prévus à l'annexe 2, en plus du droit imposé en vertu de l'article 42, un droit sur les cigares qui sont fabriqués et vendus au Canada ou importés. Ce droit est exigible :

(2) Subsection (1) is deemed to have come into force on February 12, 2014.

64. (1) The Act is amended by adding the following after section 43:

Definition of "inflationary adjusted year"

43.1 (1) In this section, "inflationary adjusted year" means 2019 and every fifth year after that year.

Adjustments

(2) Each rate of duty set out in sections 1 to 4 of Schedule 1 and paragraph (a) of Schedule 2 in respect of a tobacco product is to be adjusted on December 1 of a particular inflationary adjusted year so that the rate is equal to the greater of

(a) the rate determined by the formula

A × B

where

A is the rate of duty applicable to the tobacco product on November 30 of the particular inflationary adjusted year, and

B is the amount determined by the formula in subparagraph (i) or (ii), rounded to the nearest one-thousandth, or, if the amount is equidistant from two consecutive one-thousandths, rounded to the higher one-thousandth,

(i) if the particular inflationary adjusted year is 2019,

C/D

where

C is the Consumer Price Index for the 12-month period ending on September 30, 2019, and

D is the Consumer Price Index for the 12-month period that ended on September 30, 2013,

(ii) for any other particular inflationary adjusted year,

E/F

where

E is the Consumer Price Index for the 12-month period ending on September 30 of the particular inflationary adjusted year, and

F is the Consumer Price Index for the 12-month period ending on September 30 of the inflationary adjusted year that precedes the particular inflationary adjusted year; and

(b) the rate of duty referred to in the description of A in paragraph (a).

Rounding

(3) The adjusted rate determined under subsection (2) is to be rounded to the nearest one-hundred-thousandth or, if the adjusted rate is equidistant from two consecutive one-hundred-thousandths, to the higher one-hundred-thousandth.

Consumer Price Index

(4) In this section, the Consumer Price Index for any 12-month period is the result arrived at by

(a) aggregating the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, for each month in that period;

(b) dividing the aggregate obtained under paragraph (a) by 12; and

(c) rounding the result obtained under paragraph (b) to the nearest one-thousandth or, if the result obtained is equidistant from two consecutive one-thousandths, to the higher one-thousandth.

(2) Subsection (1) is deemed to have come into force on February 12, 2014.

2008, c. 28, s. 56(1)

65. (1) Subsection 53(1) of the French version of the Act is replaced by the following:

Droit spécial sur le tabac fabriqué importé livré à une boutique hors taxes

53. (1) Un droit spécial est imposé, aux taux prévus à l'article 1 de l'annexe 3, sur le tabac fabriqué importé qui est livré à une boutique hors taxes et qui n'est pas estampillé.

(2) Subsection (1) is deemed to have come into force on February 12, 2014.

66. (1) Subsection 54(2) of the French version of the Act is replaced by the following:

Droit spécial sur le tabac du voyageur

(2) Un droit spécial est imposé, aux taux prévus à l'article 2 de l'annexe 3, sur le tabac du voyageur au moment de son importation.

(2) Subsection (1) is deemed to have come into force on February 12, 2014.

67. (1) Paragraphs 56(1)(a) and (b) of the French version of the Act are replaced by the following:

a) si l'exportation est effectuée conformément à l'alinéa 50(4)a) par le titulaire de licence de tabac qui a fabriqué les produits, les taux prévus à l'article 3 de l'annexe 3;

b) sinon, les taux prévus à l'article 4 de l'annexe 3.

(2) Subsection (1) is deemed to have come into force on February 12, 2014.

2006, c. 4, s. 34(1)

68. (1) The heading "TOBACCO PRODUCTS INVENTORY TAX" before section 58.1 of the Act is replaced by the following:

CIGARETTE INVENTORY TAX

(2) Subsection (1) is deemed to have come into force on February 12, 2014.

2006, c. 4, s. 34(1); 2007, c. 35, s. 197(1)

69. (1) The definitions "loose tobacco", "taxed tobacco" and "unit" in section 58.1 of the Act are repealed.

(2) Section 58.1 of the Act is amended by adding the following in alphabetical order:

"adjustment day"

« date d'ajustement »

"adjustment day" means

(a) February 12, 2014; or

(b) in the case of an inflationary adjusted year, December 1 of that year.

"inflationary adjusted year"

« année inflationniste »

"inflationary adjusted year" has the same meaning as in subsection 43.1(1).

"taxed cigarettes"

« cigarettes imposées »

"taxed cigarettes" of a person means cigarettes in respect of which duty has been imposed under section 42 before February 12, 2014 at the rate set out in paragraph 1(b) of Schedule 1, as that provision read on February 11, 2014, and that, at the beginning of February 12, 2014,

(a) were owned by that person for sale in the ordinary course of a business of the person;

(b) were not held in a vending machine; and

(3) The portion of the definition "taxed cigarettes" in section 58.1 of the Act before paragraph (a) is replaced by the following:

"taxed cigarettes"

« cigarettes imposées »

"taxed cigarettes" of a person means cigarettes in respect of which duty has been imposed under section 42 or 53 at the rate applicable on the day before an adjustment day other than February 12, 2014, and that, at the beginning of the adjustment day,

(4) Subsections (1) and (2) are deemed to have come into force on February 12, 2014.

(5) Subsection (3) comes into force on November 30, 2019.

2006, c. 4, s. 34(1); 2007, c. 35, ss. 198(1) and 199(1)

70. (1) Sections 58.2 to 58.4 of the Act are replaced by the following:

Imposition of tax — 2014 increase

58.2 (1) Subject to section 58.3, every person shall pay to Her Majesty a tax on all taxed cigarettes of the person held at the beginning of February 12, 2014 at the rate of $0.02015 per cigarette.

Imposition of tax — inflationary adjusted years

(2) Subject to section 58.3, every person shall pay to Her Majesty a tax on all taxed cigarettes of the person held at the beginning of December 1 of an inflationary adjusted year at a rate per cigarette equal to

(a) in the case of cigarettes in respect of which duty has been imposed under section 42, the amount determined by the formula

(A – B)/5

where

A is the rate of duty applicable under paragraph 1(b) of Schedule 1 for each five cigarettes on December 1 of the inflationary adjusted year, and

B is the rate of duty applicable under section 1 of Schedule 1 for each five cigarettes on November 30 of the inflationary adjusted year; and

(b) in the case of cigarettes in respect of which duty has been imposed under section 53, the amount determined by the formula

C – D

where

C is the rate of duty applicable under paragraph 1(a) of Schedule 3 per cigarette on December 1 of the inflationary adjusted year, and

D is the rate of duty applicable under paragraph 1(a) of Schedule 3 per cigarette on November 30 of the inflationary adjusted year.

Rounding

(3) The amount determined under paragraph (2)(a) or (b) is to be rounded to the nearest one-hundred-thousandth or, if the amount is equidistant from two consecutive one-hundred-thousandths, to the higher one-hundred-thousandth.

Exemption for small retail inventory

58.3 Tax under this Part in respect of the inventory of all taxed cigarettes of a person that is held at the beginning of an adjustment day at a separate retail establishment of the person is not payable if that retail establishment holds inventory of 30,000 or fewer cigarettes.

Taking of inventory

58.4 Every person liable to pay tax under this Part shall, for the purposes of this Part, determine that person's inventory of all taxed cigarettes held at the beginning of an adjustment day.

(2) Subsection (1) is deemed to have come into force on February 12, 2014.

2007, c. 35, s. 200(1)

71. (1) Subsection 58.5(1) of the Act is replaced by the following:

Returns

58.5 (1) Every person liable to pay tax under this Part shall file a return with the Minister in the prescribed form and manner on or before,

(a) in the case of the tax imposed under subsection 58.2(1), April 30, 2014; or

(b) in any other case, the last day of the month following December of an inflationary adjusted year.

(2) Subsection (1) is deemed to have come into force on February 12, 2014.

2007, c. 35, s. 201(1)

72. (1) Subsection 58.6(1) of the Act is replaced by the following:

Payment

58.6 (1) Every person shall pay to the Receiver General the total tax payable by the person under this Part on or before

(a) in the case of the tax imposed under subsection 58.2(1), April 30, 2014; or

(b) in any other case, the last day of the month following December of an inflationary adjusted year.

(2) Subsection (1) is deemed to have come into force on February 12, 2014.

2008, c. 28, s. 58(1)

73. (1) Section 180.1 of the Act is replaced by the following:

Refund — imported black stock tobacco

180.1 (1) The Minister may refund to a person who has imported manufactured tobacco an amount determined in accordance with subsection (2) in respect of the tobacco if

(a) the person provides evidence satisfactory to the Minister that

(i) duty was imposed on the tobacco under section 42 at a rate set out in paragraph 1(b), 2(b) or 3(b) of Schedule 1, as those paragraphs read on February 11, 2014, and paid, and

(ii) the tobacco was black stock

(A) that was delivered to a duty free shop or customs bonded warehouse, or to a person for use as ships' stores in accordance with the Ships' Stores Regulations, before February 12, 2014, or

(B) that was exported before February 12, 2014 for delivery to a foreign duty free shop or as foreign ships' stores; and

(b) the person applies to the Minister for the refund within two years after the tobacco was imported.

Determination of refund

(2) The amount of the refund is equal to the amount by which

(a) the duty referred to in subparagraph (1)(a)(i)

exceeds

(b) the duty that would have been imposed under section 42 on the tobacco if the applicable rate of duty had been the rate set out in paragraph 1(a), 2(a) or 3(a) of Schedule 1, as those paragraphs read on February 11, 2014.

(2) Section 180.1 of the Act is repealed.

(3) Subsection (1) is deemed to have come into force on February 12, 2014.

(4) Subsection (2) comes into force on February 12, 2016.

74. (1) The Act is amended by adding the following after section 207:

Electronic funds transfer

207.1 For greater certainty, information obtained by the Minister under Part XV.1 of the Income Tax Act may be used for the purposes of this Act.

(2) Subsection (1) comes into force on January 1, 2015.

75. (1) Paragraph 211(6)(e) of the Act is amended by striking out "or" at the end of subparagraph (vi), by adding "or" at the end of subparagraph (vii) and by adding the following after subparagraph (vii):

(2) Subsection 211(6) of the Act is amended by striking out "or" at the end of paragraph (l), by adding "or'' at the end of paragraph (m) and by adding the following after paragraph (m):

(n) provide confidential information to a person who has — under a program administered by the Canada Revenue Agency to obtain information relating to tax non-compliance — entered into a contract to provide information to the Canada Revenue Agency, to the extent necessary to inform the person of any amount they may be entitled to under the contract and of the status of their claim under the contract.

(3) Section 211 of the Act is amended by adding the following after subsection (6.3):

Serious offences

(6.4) An official may provide to a law enforcement officer of an appropriate police organization

(i) an offence under any of

(A) section 3 of the Corruption of Foreign Public Officials Act,

(B) sections 119 to 121, 123 to 125 and 426 of the Criminal Code,

(D) sections 144, 264, 271, 279, 279.02, 281 and 333.1, paragraphs 334(a) and 348(1)(e) and sections 349, 435 and 462.31 of the Criminal Code,

(ii) a terrorism offence or a criminal organization offence, as those terms are defined in section 2 of the Criminal Code, for which the maximum term of imprisonment is 10 years or more, or

(iii) an offence

(A) that is punishable by minimum term of imprisonment,

(B) for which the maximum term of imprisonment is 14 years or life, or

(I) resulted in bodily harm,

(II) involved the import, export, trafficking or production of drugs, or

(III) involved the use of a weapon; and

(b) information setting out the reasonable grounds referred to in paragraph (a), to the extent that any such grounds rely on information referred to in that paragraph.

2007, c. 35, s. 202(1); 2008, c. 28, s. 61(1); 2013, c. 33, s. 54(1)

76. (1) Paragraph 216(2)(a) of the Act is replaced by the following:

(a) the total of

(i) $0.21 multiplied by the number of cigarettes to which the offence relates,

(ii) $0.21 multiplied by the number of tobacco sticks to which the offence relates,

(iii) $0.26 multiplied by the number of grams of manufactured tobacco other than cigarettes or tobacco sticks to which the offence relates, and

(iv) $0.41 multiplied by the number of cigars to which the offence relates, and

(2) Paragraph 216(2)(a) of the Act is replaced by the following:

(a) the total of

(i) in the case of cigarettes, the number of cigarettes to which the offence relates multiplied by the amount, rounded to the nearest one-hundredth, or, if the amount is equidistant from two consecutive one-hundredths, rounded to the higher one-hundredth, determined by the formula

(A/5) × 2

where

A is the rate of duty applicable under section 1 of Schedule 1 for each five cigarettes at the time the offence was committed,

(ii) in the case of tobacco sticks, the number of tobacco sticks to which the offence relates multiplied by the amount, rounded to the nearest one-hundredth, or, if the amount is equidistant from two consecutive one-hundredths, rounded to the higher one-hundredth, determined by the formula

B × 2

where

B is the rate of duty applicable under section 2 of Schedule 1 per tobacco stick at the time the offence was committed,

(iii) in the case of manufactured tobacco other than cigarettes or tobacco sticks, the number of grams of manufactured tobacco to which the offence relates multiplied by the amount, rounded to the nearest one-hundredth, or, if the amount is equidistant from two consecutive one-hundredths, rounded to the higher one-hundredth, determined by the formula

(C/50) × 2

where

C is the rate of duty applicable under section 3 of Schedule 1 per 50 grams at the time the offence was committed, and

(iv) in the case of cigars, the number of cigars to which the offence relates multiplied by the amount, rounded to the nearest one-hundredth, or, if the amount is equidistant from two consecutive one-hundredths, rounded to the higher one-hundredth, determined by the formula

D × 5

where

D is the rate of duty applicable under paragraph (a) of Schedule 2 per cigar at the time the offence was committed, and

2007, c. 35, s. 202(2); 2008, c. 28, s. 61(2); 2013, c. 33, s. 54(2)

(3) Paragraph 216(3)(a) of the Act is replaced by the following:

(a) the total of

(i) $0.32 multiplied by the number of cigarettes to which the offence relates,

(ii) $0.32 multiplied by the number of tobacco sticks to which the offence relates,

(iii) $0.39 multiplied by the number of grams of manufactured tobacco other than cigarettes or tobacco sticks to which the offence relates, and

(iv) $0.82 multiplied by the number of cigars to which the offence relates, and

(4) Paragraph 216(3)(a) of the Act is replaced by the following:

(a) the total of

(A/5) × 3

where

A is the rate of duty applicable under section 1 of Schedule 1 for each five cigarettes at the time the offence was committed,

B × 3

where

B is the rate of duty applicable under section 2 of Schedule 1 per tobacco stick at the time the offence was committed,

(C/50) × 3

where

C is the rate of duty applicable under section 3 of Schedule 1 per 50 grams at the time the offence was committed, and

D × 10

where

D is the rate of duty applicable under paragraph (a) of Schedule 2 per cigar that applied at the time the offence was committed, and

(5) Subsections (2) and (4) come into force on December 1, 2019.

2007, c. 18, s. 122

77. (1) Section 236 of the Act is repealed.

(2) Subsection (1) is deemed to have come into force on February 12, 2014.

2007, c. 35, s. 203(1); 2008, c. 28, s. 62; 2013, c. 33, s. 55

78. (1) Paragraphs 240(a) to (c) of the Act are replaced by the following:

(a) $0.40 per cigarette that was removed in contravention of that subsection,

(b) $0.40 per tobacco stick that was removed in contravention of that subsection, and

(c) $502.19 per kilogram of manufactured tobacco, other than cigarettes and tobacco sticks, that was removed in contravention of that subsection.

(2) Paragraphs 240(a) to (c) of the Act are replaced by the following:

(a) in the case of cigarettes, the number of cigarettes that were removed in contravention of that subsection multiplied by the amount, rounded to the nearest one-hundredth, or, if the amount is equidistant from two consecutive one-hundredths, rounded to the higher one-hundredth, determined by the formula

(A/5 + B) × 2

where

A is the rate of duty set out in section 1 of Schedule 1 that applied at the time the cigarettes were removed, and

B is the rate of duty set out in paragraph 4(a) of Schedule 3 that applied at the time the cigarettes were removed,

(b) in the case of tobacco sticks, the number of tobacco sticks that were removed in contravention of that subsection multiplied by the amount, rounded to the nearest one-hundredth, or, if the amount is equidistant from two consecutive one-hundredths, rounded to the higher one-hundredth, determined by the formula

(C + D) × 2

where

C is the rate of duty set out in section 2 of Schedule 1 that applied at the time the tobacco sticks were removed, and

D is the rate of duty set out in paragraph 4(b) of Schedule 3 that applied at the time the tobacco sticks were removed, and

(c) in the case of manufactured tobacco other than cigarettes and tobacco sticks, the number of kilograms of manufactured tobacco that were removed in contravention of that subsection multiplied by the amount, rounded to the nearest one-hundredth, or, if the amount is equidistant from two consecutive one-hundredths, rounded to the higher one-hundredth, determined by the formula

(E + F) × 40

where

E is the rate of duty set out in section 3 of Schedule 1 that applied at the time the manufactured tobacco was removed, and

F is the rate of duty set out in paragraph 4(c) of Schedule 3 that applied at the time the manufactured tobacco was removed.

(3) Subsection (2) comes into force on December 1, 2019.

2003, c. 15, s. 47(1); 2007, c. 35, ss. 204(1) and 207(1); 2008, c. 28, ss. 63(1) and (2); 2013, c. 33, ss. 56(1) and (2)

79. (1) The portion of Schedule 1 to the Act before section 5 is replaced by the following:

SCHEDULE 1

(Sections 42, 43.1 and 58.2)

RATES OF DUTY ON TOBACCO PRODUCTS

1. Cigarettes: for each five cigarettes or fraction of five cigarettes contained in any package,

(a) $0.52575; or

(b) if the rate referred to in paragraph (a) has been adjusted under subsection 43.1(2), the adjusted rate.

2. Tobacco sticks: per stick,

(a) $0.10515; or

(b) if the rate referred to in paragraph (a) has been adjusted under subsection 43.1(2), the adjusted rate.

3. Manufactured tobacco other than cigarettes and tobacco sticks: per 50 grams or fraction of 50 grams contained in any package,

(a) $6.57188; or

(b) if the rate referred to in paragraph (a) has been adjusted under subsection 43.1(2), the adjusted rate.

4. Cigars: per 1,000 cigars,

(a) $22.88559; or

(b) if the rate referred to in paragraph (a) has been adjusted under subsection 43.1(2), the adjusted rate.

(2) Schedule 1 to the Act is amended by replacing the references after the heading "SCHEDULE 1" with the following:

(Sections 42, 43.1 and 58.2, subsections 216(2) and (3) and section 240)

(3) Subsection (1) is deemed to have come into force on February 12, 2014.

(4) Subsection (2) comes into force on December 1, 2019.

2007, c. 35, ss. 208(1) and (2)

80. (1) Schedule 2 to the Act is replaced by the following:

SCHEDULE 2

(Sections 43 and 43.1)

ADDITIONAL DUTY ON CIGARS

Cigars: per cigar, the greater of

(a) either

(i) $0.08226, or

(ii) if the rate referred to in subparagraph (i) has been adjusted under subsection 43.1(2), the adjusted rate; and

(b) the amount obtained by multiplying the sale price, in the case of cigars manufactured in Canada, or the duty-paid value, in the case of imported cigars, by the following percentage:

(i) if the rate referred to in subparagraph (a)(i) has not been adjusted under subsection 43.1(2), 82%, or

(ii) if the rate referred to in subparagraph (a)(i) has been adjusted under subsection 43.1(2), the amount, rounded to the nearest whole number, or, if the amount is equidistant from two consecutive whole numbers, to the higher whole number, expressed as a percentage, determined by the formula

A × 1000

where

A is the adjusted rate referred to in subparagraph (a)(ii), as if that rate were not expressed in dollars.

(2) Schedule 2 to the Act is amended by replacing the references after the heading "SCHEDULE 2" with the following:

(Sections 43 and 43.1 and subsections 216(2) and (3))

(3) Subsection (1) is deemed to have come into force on February 12, 2014.

(4) Subsection (2) comes into force on December 1, 2019.

2003, c. 15, ss. 51 to 53; 2008, c. 28, ss. 65(1), 66(1) and 67(1); 2013, c. 33, ss. 57(1), 58(1) and 59(1)

81. (1) The portion of Schedule 3 to the Act before section 4 is replaced by the following:

SCHEDULE 3

(Sections 53, 54, 56 and 58.2)

RATES OF SPECIAL DUTIES ON CERTAIN MANUFACTURED TOBACCO

1. Special duty on imported manufactured tobacco:

(a) in dollars per cigarette, the rate determined by the formula, rounded to the nearest one-hundred-thousandth, or, if the rate is equidistant from two consecutive one-hundred-thousandths, to the higher one-hundred-thousandth,

A/5

where

A is the rate of duty applicable under section 1 of Schedule 1 for each five cigarettes;

(b) in dollars per tobacco stick, the rate of duty applicable under section 2 of Schedule 1 per tobacco stick; and

(c) in dollars per 50 grams, or fraction of 50 grams, contained in any package of manufactured tobacco other than cigarettes or tobacco sticks, the rate of duty applicable under section 3 of Schedule 1 per 50 grams.

2. Special duty on traveller's tobacco:

A/5

where

A is the rate of duty applicable under section 1 of Schedule 1 for each five cigarettes;

(b) in dollars per tobacco stick, the rate of duty applicable under section 2 of Schedule 1 per tobacco stick; and

3. Special duty on unstamped tobacco products:

A/5

where

A is the rate of duty applicable under section 1 of Schedule 1 for each five cigarettes;

(b) in dollars per tobacco stick, the rate of duty applicable under section 2 of Schedule 1 per tobacco stick; and

(c) in dollars per kilogram of tobacco products other than cigarettes or tobacco sticks, the rate determined by the formula, rounded to the nearest one-hundred-thousandth, or, if the rate is equidistant from two consecutive one-hundred-thousandths, to the higher one-hundred-thousandth,

A × 20

where

A is the rate of duty applicable under section 3 of Schedule 1 per 50 grams of manufactured tobacco.

(2) Schedule 3 to the Act is amended by replacing the references after the heading "SCHEDULE 3" with the following:

(Sections 53, 54, 56, 58.2 and 240)

(3) Subsection (1) is deemed to have come into force on February 12, 2014.

(4) Subsection (2) comes into force on December 1, 2019.

Application

82. For the purposes of applying the provisions of the Customs Act that provide for the payment of, or the liability to pay, interest in respect of any amount, the amount is to be determined and interest is to be computed on it as though paragraphs 1(a), 2(a), 3(a) and 4(a) of Schedule 1 of the Excise Act, 2001, as enacted by section 79, subparagraphs (a)(i) and (b)(i) of Schedule 2 of that Act, as enacted by section 80, and section 81 had come into force on February 12, 2014.

R.S., c. E-15

Excise Tax Act

R.S., c. 7 (2nd Supp.), s. 34(1)

83. (1) Subsection 68.16(3) of the Excise Tax Act is replaced by the following:

Presumption

(3) Any payment made to a person referred to in paragraph (1)(i) or (2)(e) shall, for the purposes of subsection (4), paragraph 97.1(1)(b) and sections 98 to 101, be deemed to have been made to the purchaser.

(2) Subsection (1) comes into force on the day after the day on which this Act receives royal assent.

2006, c. 4, s. 130(1)

84. (1) Subsection 79.03(4) of the Act is replaced by the following:

Interest and penalty amounts of $25 or less

(4) If, at any time, a person pays an amount not less than the total of all amounts, other than interest and penalty under subsection 7(1.1) or 68.5(9.1) or section 95.1 or 95.2, owing at that time to Her Majesty in right of Canada under this Act for a reporting period of the person and the total amount of interest and penalty payable by the person under this Act for that reporting period is not more than $25.00, the Minister may cancel the interest and penalty.

(2) Subsection (1) comes into force on the day after the day on which this Act receives royal assent.

85. (1) The Act is amended by adding the following after section 95.1:

False statements or omissions

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

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

(i) that tax payable

exceeds

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

(b) if the false statement or omission is relevant to the determination of a refund, rebate or any other amount payable to the person (each of which is in this section referred to as a "rebate") under this Act, the amount, if any, by which

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

exceeds

(ii) the amount of the rebate payable to the person.

Burden of proof in respect of penalties

(2) If, in an appeal under this Act, a penalty assessed by the Minister under this section is in issue, the burden of establishing the facts justifying the assessment of the penalty is on the Minister.

(2) Subsection (1) applies to any return filed by a person after the day on which this Act receives royal assent.

R.S., c. 7 (2nd Supp.), s. 44(1); R.S., c. 12 (4th Supp.), s. 36(1)

86. (1) Section 97 of the Act is replaced by the following:

Failing to file return

97. Every person required, by or pursuant to any Part except Part I, to file a return, who fails to file the return within the time it is required to be filed, is guilty of an offence and liable to a fine of not less than $10 and not more than $100.

Offences for false statements

97.1 (1) Every person commits an offence who

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

(b) for the purpose of evading payment or remittance of any tax under this Act, or obtaining a refund, rebate or other amount to which the person is not entitled under this Act,

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

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

(c) wilfully, in any manner, evades or attempts to evade compliance with this Act or payment or remittance of tax or any other amount imposed under this Act;

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

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

Prosecution on summary conviction

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

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

(b) both a fine referred to in paragraph (a) and imprisonment for a term not exceeding two years.

Prosecution on indictment

(3) Every person who is charged with an offence described in subsection (1) 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) a fine of not less than 100%, and not more than 200%, of the amount of the tax that was sought to be evaded, or of the refund, rebate or other amount sought, or, if the amount that was sought to be evaded cannot be ascertained, a fine of not less than $2,000 and not more than $25,000; or

(b) both a fine referred to in paragraph (a) and imprisonment for a term not exceeding five years.

Penalty on conviction

(4) A person that is convicted of an offence under subsection (2) or (3) is not liable to pay a penalty imposed under subsection 79(5) or section 95.1, 95.2 or 109 or under a regulation made under this Act for the same evasion or attempt unless a notice of assessment for that penalty was issued before the information or complaint giving rise to the conviction was laid or made.

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 Federal Court or may file a request for a postponement or adjournment with the Tribunal, as the case may be, and, on doing so, the proceedings before the Federal Court are stayed or the proceedings before the Tribunal are postponed or adjourned, as the case may be, pending final determination of the outcome of the prosecution.

(2) Subsection (1) comes into force on the day after the day on which this Act receives royal assent.

87. (1) The Act is amended by adding the following after section 98.1:

Electronic funds transfer

98.2 For greater certainty, information obtained by the Minister under Part XV.1 of the Income Tax Act may be used for the purposes of this Act.

(2) Subsection (1) comes into force on January 1, 2015.

88. (1) Section 102 of the Act is repealed.

(2) Subsection (1) comes into force on the day after the day on which this Act receives royal assent.

89. (1) Section 108 of the Act is repealed.

(2) Subsection (1) comes into force on the day after the day on which this Act receives royal assent.

2002, c. 9, s. 5

Air Travellers Security Charge Act

90. (1) The Air Travellers Security Charge Act is amended by adding the following after section 37:

Electronic funds transfer

37.1 For greater certainty, information obtained by the Minister under Part XV.1 of the Income Tax Act may be used for the purposes of this Act.

(2) Subsection (1) comes into force on January 1, 2015.

PART 4

1997, c. 36

CUSTOMS TARIFF

Amendments to the Act

91. The expression "Supplementary Note." in Chapter 16 of the List of Tariff Provisions set out in the schedule to the Customs Tariff is replaced by the following:

Supplementary Notes.

92. Chapter 16 of the List of Tariff Provisions set out in the schedule to the Act is amended by adding the following after Supplementary Note 1:

2. Where the components of food preparations of a type used commercially in the preparation of fresh food products for direct sale to a consumer include cheese, those components are to be classified separately, in their respective headings, regardless of their packaging.

93. Tariff item Nos. 8905.20.10 and 8905.90.10 in the List of Tariff Provisions set out in the schedule to the Act are repealed.

94. Tariff item No. 9809.00.00 in the List of Tariff Provisions set out in the schedule to the Act is repealed.

95. The Description of Goods of tariff item No. 9833.00.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by adding a reference to "the Governor General," before the reference to "the Prime Minister of Canada".

96. The List of Tariff Provisions set out in the schedule to the Act is amended by adding, in numerical order, the tariff provisions set out in Schedule 1 to this Act.

97. The List of Intermediate and Final Rates for Tariff Items of the "F" Staging Category set out in the schedule to the Act is amended by adding, in numerical order, the tariff items set out in Schedule 2 to this Act.

Coming into Force

November 29, 2013

98. (1) Sections 91 and 92 are deemed to have come into force on November 29, 2013.

May 5, 2014

(2) Sections 93, 96 and 97 are deemed to have come into force on May 5, 2014.

ANNEX 1

SCHEDULE 1
(Section 96)
Tariff Item	Description of Goods	Initial Rate	Final Rate	Initial Rate	Final Rate
		Most-Favoured-Nation Tariff		Preferential Tariff

	---Drilling platforms:
8905.20.11	----Used in drilling activity for exploration,	Free	Free (A)	UST: Free	UST: Free (A)
	delineation or development of offshore projects			MT: Free	MT: Free (A)
				MUST: Free	MUST: Free (A)
				CT: Free	CT: Free (A)
				CIAT: Free	CIAT: Free (A)
				CRT: Free	CRT: Free (A)
				IT: Free	IT: Free (A)
				NT: Free	NT: Free (A)
				SLT: Free	SLT: Free (A)
				JT: Free	JT: Free (A)
				PT: Free	PT: Free (A)
				COLT: Free	COLT: Free (A)
				PAT: Free	PAT: Free (A)
				GPT: Free	GPT: Free (A)
				LDCT: Free	LDCT: Free (A)
				CCCT: Free	CCCT: Free (A)
				AUT: N/A	AUT: N/A
				NZT: N/A	NZT: N/A
8905.20.19	----Other	20%	20% (A)	UST: Free	UST: Free (A)
				MT: Free	MT: Free (A)
				MUST: Free	MUST: Free (A)
				CT: Free	CT: Free (A)
				CIAT: Free	CIAT: Free (A)
				CRT: Free	CRT: Free (A)
				IT: 15%	IT: Free (F)
				NT: 15%	NT: Free (F)
				SLT: 15%	SLT: Free (F)
				JT: Free	JT: Free (A)
				PT: 2.5%	PT: Free (F)
				COLT: 8.5%	COLT: Free (F)
				PAT: Free	PAT: Free (A)
				GPT: 20%	GPT: 20% (A)
				LDCT: Free	LDCT: Free (A)
				CCCT: Free	CCCT: Free (A)
				AUT: N/A	AUT: N/A
				NZT: N/A	NZT: N/A
	---Drill-ships, drilling barges and
	floating drilling rigs:
8905.90.11	----Drill-ships used in drilling activity	Free	Free (A)	UST: Free	UST: Free (A)
	for exploration, delineation or development			MT: Free	MT: Free (A)
	of offshore projects			MUST: Free	MUST: Free (A)
				CT: Free	CT: Free (A)
				CIAT: Free	CIAT: Free (A)
				CRT: Free	CRT: Free (A)
				IT: Free	IT: Free (A)
				NT: Free	NT: Free (A)
				SLT: Free	SLT: Free (A)
				JT: Free	JT: Free (A)
				PT: Free	PT: Free (A)
				COLT: Free	COLT: Free (A)
				PAT: Free	PAT: Free (A)
				GPT: Free	GPT: Free (A)
				LDCT: Free	LDCT: Free (A)
				CCCT: Free	CCCT: Free (A)
				AUT: N/A	AUT: N/A
				NZT: N/A	NZT: N/A
8905.90.19	----Other	20%	20% (A)	UST: Free	UST: Free (A)
				MT: Free	MT: Free (A)
				MUST: Free	MUST: Free (A)
				CT: Free	CT: Free (A)
				CIAT: Free	CIAT: Free (A)
				CRT: Free	CRT: Free (A)
				IT: 15%	IT: Free (F)
				NT: 15%	NT: Free (F)
				SLT: 15%	SLT: Free (F)
				JT: Free	JT: Free (A)
				PT: 2.5%	PT: Free (F)
				COLT: 8.5%	COLT: Free (F)
				PAT: Free	PAT: Free (A)
				GPT: 20%	GPT: 20% (A)
				LDCT: Free	LDCT: Free (A)
				CCCT: Free	CCCT: Free (A)
				AUT: N/A	AUT: N/A
				NZT: N/A	NZT: N/A

SCHEDULE 2
(Section 97)
Tariff
Item	Most-Favoured-Nation Tariff	Preferential Tariff
8905.20.19		Effective on July 1, 2014IT: 12.5%
		Effective on July 1, 2015 IT: 10%
		Effective on July 1, 2016IT: 7.5%
		Effective on July 1, 2017 IT: 5%
		Effective on July 1, 2018 IT: 2.5%
		Effective on July 1, 2019IT: Free
		Effective on July 1, 2014 NT: 12.5%
		Effective on July 1, 2015 NT: 10%
		Effective on July 1, 2016 NT: 7.5%
		Effective on July 1, 2017 NT: 5%
		Effective on July 1, 2018 NT: 2.5%
		Effective on July 1, 2019NT: Free
		Effective on July 1, 2014SLT: 12.5%
		Effective on July 1, 2015SLT: 10%
		Effective on July 1, 2016SLT: 7.5%
		Effective on July 1, 2017SLT: 5%
		Effective on July 1, 2018SLT: 2.5%
		Effective on July 1, 2019SLT: Free
		Effective on January 1, 2015PT: Free
		Effective on January 1, 2015COLT: 5.5%
		Effective on January 1, 2016COLT: 2.5%
		Effective on January 1, 2017 COLT: Free
8905.90.19		Effective on July 1, 2014IT: 12.5%
		Effective on July 1, 2015 IT: 10%
		Effective on July 1, 2016IT: 7.5%
		Effective on July 1, 2017 IT: 5%
		Effective on July 1, 2018 IT: 2.5%
		Effective on July 1, 2019IT: Free
		Effective on July 1, 2014 NT: 12.5%
		Effective on July 1, 2015 NT: 10%
		Effective on July 1, 2016 NT: 7.5%
		Effective on July 1, 2017 NT: 5%
		Effective on July 1, 2018 NT: 2.5%
		Effective on July 1, 2019NT: Free
		Effective on July 1, 2014SLT: 12.5%
		Effective on July 1, 2015SLT: 10%
		Effective on July 1, 2016SLT: 7.5%
		Effective on July 1, 2017SLT: 5%
		Effective on July 1, 2018SLT: 2.5%
		Effective on July 1, 2019SLT: Free
		Effective on January 1, 2015PT: Free
		Effective on January 1, 2015COLT: 5.5%
		Effective on January 1, 2016COLT: 2.5%
		Effective on January 1, 2017 COLT: Free

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Archived - Notice of Ways and Means Motion to implement certain provisions of the budget tabled in Parliament on February 11, 2014 and other measures and Explanatory Notes

This page has been archived on the Web

PART 1

AMENDMENTS TO THE INCOME TAX ACT AND TO RELATED LEGISLATION

Income Tax Act

Financial Administration Act

Income Tax Regulations

Canada Pension Plan Regulations

Insurable Earnings and Collection of Premiums Regulations

PART 2

AMENDMENTS TO THE EXCISE TAX ACT (GST/HST MEASURES)

PART 3

AMENDMENTS TO THE EXCISE ACT, 2001, THE EXCISE TAX ACT (OTHER THAN GST/HST MEASURES) AND THE AIR TRAVELLERS SECURITY CHARGE ACT

Excise Act, 2001

Amendments to the Act

CIGARETTE INVENTORY TAX

Application

Excise Tax Act

Air Travellers Security Charge Act

PART 4

CUSTOMS TARIFF

Amendments to the Act

Coming into Force

ANNEX 1

Thank you for your help!