Notice of Ways and Means Motion to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures

MINISTER OF FINANCE

90869WM—2018-3-20

That it is expedient to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures as follows:

Short Title

Short title

1 This Act may be cited as the Budget Implementation Act, 2018, No. 1.

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

Income Tax Act

2 (1) Paragraph 6(1)(f.1) of the Income Tax Act is replaced by the following:

Canadian Forces members and veterans amounts

(f.1) the total of all amounts received by the taxpayer in the year on account of

(i) an earnings loss benefit, an income replacement benefit (other than an amount determined under subsection 19.1(1), paragraph 23(1)(b) or subsection 26.1(1) of the Veterans Well-being Act, as modified, where applicable, under Part 5 of that Act), a supplementary retirement benefit or a career impact allowance payable to the taxpayer under Part 2 of the Veterans Well-being Act, or

(ii) an amount payable under any of subsections 99(6), 109(1) and 115(5) and sections 124 to 126 of the Veterans Well-being Act;

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

3 (1) Paragraph 56(1)(a) 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) an income replacement benefit payable to the taxpayer under Part 2 of the Veterans Well-being Act, if the amount is determined under subsection 19.1(1), paragraph 23(1)(b) or subsection 26.1(1) of that Act (as modified, where applicable, under Part 5 of that Act);

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

4 (1) Subparagraph (c)(i) of the definition eligible pension income in subsection 60.03(1) of the Act is replaced by the following:

(i) the total of all amounts received by the individual in the year on account of

(A) a retirement income security benefit payable to the individual under Part 2 of the Veterans Well-being Act, or

(B) an income replacement benefit payable to the individual under Part 2 of the Veterans Well-being Act, if the amount is determined under subsection 19.1(1), paragraph 23(1)(b) or subsection 26.1(1) of that Act (as modified, where applicable, under Part 5 of that Act), and

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

5 (1) Paragraph 81(1)(d.1) of the Act is replaced by the following:

Canadian Forces members and veterans amounts

(d.1) the total of all amounts received by the taxpayer in the year on account of

(i) a Canadian Forces income support benefit payable to the taxpayer under Part 2 of the Veterans Well-being Act,

(ii) pain and suffering compensation, additional pain and suffering compensation or a critical injury benefit, disability award, death benefit, clothing allowance or detention benefit payable to the taxpayer under Part 3 of the Veterans Well-being Act,

(iii) a family caregiver relief benefit or caregiver recognition benefit payable to the taxpayer under Part 3.1 of the Veterans Well-being Act, or

(iv) an amount payable to the taxpayer under subsection 132(1) of the Veterans Well-being Act;

(2) Subparagraph 81(1)(d.1)(iii) of the Act, as enacted by subsection (1), is replaced by the following:

(iii) a caregiver recognition benefit payable to the taxpayer under Part 3.1 of the Veterans Well-being Act, or

(3) Subsection 81(1) of the Act is amended by adding the following after paragraph (i):

Memorial grant

(j) an amount received under the Memorial Grant Program for First Responders established under the authority of the Department of Public Safety and Emergency Preparedness Act in respect of individuals who die in the course of, or as a result of, their duties or as a result of an occupational illness or psychological impairment;

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

(5) Subsection (2) applies to the 2020 and subsequent taxation years.

(6) Subsection (3) applies in respect of amounts received after March 2018.

6 (1) Subparagraph 82(1)(b)(i) of the Act is replaced by the following:

(i) the product of the amount determined under paragraph (a) in respect of the taxpayer for the taxation year multiplied by

(A) for the 2018 taxation year, 16%, and

(B) for taxation years after 2018, 15%, and

(2) Subsection (1) applies to the 2018 and subsequent taxation years.

7 (1) Paragraph 87(2)(aa) of the Act is replaced by the following:

Refundable dividend tax on hand

(aa) if the new corporation was a private corporation immediately after the amalgamation, the following rules apply:

(i) for the purpose of computing the eligible refundable dividend tax on hand and non-eligible refundable dividend tax on hand (as defined in subsection 129(4)) of the new corporation at the end of its first taxation year there shall be added to the total determined under those definitions in respect of the new corporation for the year

(A) in respect of the new corporation's eligible refundable dividend tax on hand, the total of all amounts each of which is the amount, if any, by which the eligible refundable dividend tax on hand of a predecessor corporation at the end of its last taxation year exceeds the total of all amounts each of which is the portion, if any, of its dividend refund for its last taxation year from its eligible refundable dividend tax on hand determined under subparagraph 129(1)(a)(i) or clause 129(1)(a)(ii)(B), and

(B) in respect of the new corporation's non-eligible refundable dividend tax on hand, the total of all amounts each of which is the amount, if any, by which the non-eligible refundable dividend tax on hand of a predecessor corporation at the end of its last taxation year exceeds the portion, if any, of its dividend refund for its last taxation year from its non-eligible refundable dividend tax on hand determined under clause 129(1)(a)(ii)(A), and

(ii) no amount shall be added under this paragraph in respect of a predecessor corporation

(A) that was not a private corporation at the end of its last taxation year, or

(B) where subsection 129(1.2) would have applied to deem a dividend paid by the predecessor corporation immediately before the amalgamation not to be a taxable dividend for the purpose of subsection 129(1);

(2) Subject to subsection 20(5), subsection (1) applies to taxation years that begin after 2018.

8 (1) The portion of paragraph 104(21.2)(b) of the Act before subparagraph (i) is replaced by the following:

(b) the beneficiary is, for the purposes of section 120.4 and for the purposes of sections 3, 74.3 and 111 as they apply for the purposes of section 110.6,

(2) Subsection (1) applies to the 2018 and subsequent taxation years.

9 (1) Clauses 110(1)(f)(v)(A) and (B) of the Act are replaced by the following:

(A) the employment income earned by the taxpayer as a member of the Canadian Forces, or as a police officer, while serving on a deployed international operational mission (as determined by the Minister of National Defence or by a person designated by that Minister), and

(B) the employment income that would have been so earned by the taxpayer if the taxpayer had been paid at the maximum rate of pay that applied, from time to time during the mission, to a Lieutenant-Colonel (General Service Officers) of the Canadian Forces,

(2) Subsection 110(1.3) of the Act is repealed.

(3) Subsections (1) and (2) apply to the 2017 and subsequent taxation years.

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

Annual adjustment

117.1 (1) The amount of $1,000 referred to in the formula in paragraph 8(1)(s), each of the amounts expressed in dollars in subparagraph 6(1)(b)(v.1), subsection 117(2), the description of B in subsection 118(1), subsection 118(2), paragraph (a) of the description of B in subsection 118(10), subsection 118.01(2), the descriptions of C and F in subsection 118.2(1) and subsections 118.3(1), 122.5(3) and 122.51(1) and (2), the amount of $400,000 referred to in the formula in paragraph 110.6(2)(a), the amounts of $1,355 and $2,335 referred to in the description of A, and the amounts of $12,820 and $17,025 referred to in the description of B, in the formula in subsection 122.7(2), the amount of $700 referred to in the description of C, and the amounts of $24,111 and $36,483 referred to in the description of D, in the formula in subsection 122.7(3), and each of the amounts expressed in dollars in Part I.2 in relation to tax payable under this Part or Part I.2 for a taxation year shall be adjusted so that the amount to be used under those provisions for the year is the total of

(2) Subsection (1) applies to the 2019 and subsequent taxation years, except that the adjustment provided for in subsection 117.1(1) of the Act, as amended by subsection (1), does not apply for the 2019 taxation year in respect of the amounts of $1,355, $2,335, $12,820, $17,025, $700, $24,111 and $36,483.

11 (1) The description of B in subsection 118(2) of the Act is replaced by the following:

B is 15% of the amount, if any, by which the individual's income for the year would exceed $25,921 if, in computing that income, no amount were included in respect of a gain from a disposition of property to which section 79 applies and no amount were deductible under paragraph 20(1)(ww).

(2) Paragraph (b) of the description of B in subsection 118(3) of the Act is amended by striking out "and" at the end of subparagraph (i) and by replacing subparagraph (b)(ii) with the following:

(ii) the total of all amounts received by the individual in the year on account of a retirement income security benefit under Part 2 of the Veterans Well-being Act, and

(iii) the total of all amounts received by the individual in the year on account of an income replacement benefit payable to the individual under Part 2 of the Veterans Well-being Act, if the amount is determined under subsection 19.1(1), paragraph 23(1)(b) or subsection 26.1(1) of that Act (as modified, where applicable, under Part 5 of that Act).

(3) Subsection 118(4) of the Act is amended by adding the following after paragraph (a.1):

(a.2) a reference to income for a year is to be read as a reference to that income determined as if, in computing that income, no amount were deductible under paragraph 20(1)(ww);

(4) Subsections (1) and (3) apply to the 2018 and subsequent taxation years.

(5) Subsection (2) comes into force on April 1, 2019.

12 (1) The portion of paragraph 118.2(2)(l) of the Act before subparagraph (ii) 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, severe mental impairment or a severe and prolonged impairment that markedly restricts the use of the patient's arms or legs,

(i) for an animal that is

(A) specially trained to

(I) in the case of severe mental impairment, perform specific tasks (excluding, for greater certainty, the provision of emotional support) that assist the patient in coping with the impairment, and

(II) in all other cases, assist the patient in coping with the impairment, and

(B) provided by a person or organization one of whose main purposes is such training of animals,

(2) Subsection (1) applies in respect of expenses incurred after 2017.

13 (1) The definitions excluded amount and specified individual in subsection 120.4(1) of the Act are replaced by the following:

excluded amount, in respect of an individual for a taxation year, means an amount that is the individual's income for the year from, or the individual's taxable capital gain or profit for the year from the disposition of, a property to the extent that the amount

(a) if the individual has not attained the age of 24 years before the year, is from a property that was acquired by, or for the benefit of, the individual as a consequence of the death of a person who is

(i) a parent of the individual, or

(ii) any person, if the individual is

(A) enrolled as a full-time student during the year at a post-secondary educational institution (as defined in subsection 146.1(1)), or

(B) an individual in respect of whom an amount may be deducted under section 118.3 in computing a taxpayer's tax payable under this Part for the year;

(b) is from a property acquired by the individual under a transfer described in subsection 160(4);

(d) is a taxable capital gain for the year from the disposition by the individual of property that is, at the time of the disposition, qualified farm or fishing property or qualified small business corporation shares (as those terms are defined in subsection 110.6(1)), unless the amount would be deemed to be a dividend under subsection 120.4(4) or (5) if this definition were read without reference to this paragraph;

(e) if the individual has attained the age of 17 years before the year, is

(i) not derived directly or indirectly from a related business in respect of the individual for the year, or

(ii) derived directly or indirectly from an excluded business of the individual for the year;

(f) if the individual has attained the age of 17 years but not the age of 24 years before the year, is

(i) a safe harbour capital return of the individual, or

(ii) a reasonable return in respect of the individual, having regard only to the contributions of arm's length capital by the individual; or

(g) if the individual has attained the age of 24 years before the year, is

(i) income from, or a taxable capital gain from the disposition of, excluded shares of the individual, or

(ii) a reasonable return in respect of the individual. (montant exclu)

specified individual, for a taxation year, means an individual (other than a trust) who

(a) is resident in Canada

(i) in the case where the individual dies in the year, immediately before the death, and

(ii) in any other case, at the end of the year; and

(b) if the individual has not attained the age of 17 years before the year, has a parent resident in Canada at any time in the year. (particulier déterminé)

(2) Subparagraph (b)(ii) of the definition split income in subsection 120.4(1) of the Act is replaced by the following:

(ii) can reasonably be considered to be income derived directly or indirectly from

(A) one or more related businesses in respect of the individual for the year, or

(B) the rental of property by a particular partnership or trust, if a person who is related to the individual at any time in the year

(I) is actively engaged on a regular basis in the activities of the particular partnership or trust related to the rental of property, or

(II) in the case of a particular partnership, has an interest in the particular partnership directly or indirectly through one or more other partnerships,

(3) Clauses (c)(ii)(C) and (D) of the definition split income in subsection 120.4(1) of the Act are replaced by the following:

(C) to be income derived directly or indirectly from one or more related businesses in respect of the individual for the year, or

(D) to be income derived from the rental of property by a particular partnership or trust, if a person who is related to the individual at any time in the year is actively engaged on a regular basis in the activities of the particular partnership or trust related to the rental of property,

(4) The definition split income in subsection 120.4(1) of the Act is amended by adding the following after paragraph (c):

(d) an amount included in computing the individual's income for the year to the extent that the amount is in respect of a debt obligation that

(i) is of a corporation (other than a mutual fund corporation or a corporation shares of a class of the capital stock of which are listed on a designated stock exchange), partnership or trust (other than a mutual fund trust), and

(ii) is not

(A) described in paragraph (a) of the definition fully exempt interest in subsection 212(3),

(B) listed or traded on a public market, or

(I) within the meaning assigned by the Canada Deposit Insurance Corporation Act, or

(II) with a credit union or a branch in Canada of a bank, and

(e) an amount in respect of a property, to the extent that

(i) the amount

(A) is a taxable capital gain, or a profit, of the individual for the year from the disposition after 2017 of the property, or

(B) is included under subsection 104(13) or 105(2) in computing the individual's income for the year and can reasonably be considered to be attributable to a taxable capital gain, or a profit, of any person or partnership for the year from the disposition after 2017 of the property, and

(ii) the property is

(A) a share of the capital stock of a corporation (other than a share of a class listed on a designated stock exchange or a share of the capital stock of a mutual fund corporation), or

(B) a property in respect of which the following conditions are met:

(I) the property is

1 an interest in a partnership,

2 an interest as a beneficiary under a trust (other than a mutual fund trust or a trust that is deemed to be in existence by subsection 143(1)), or

3 a debt obligation (other than a debt obligation described in any of clauses (d)(ii)(A) to (C)), and

(II) either

1 in respect of the property an amount is included in the individual's split income for the year or an earlier taxation year, or

2 all or any part of the fair market value of the property, immediately before the disposition referred to in clause (i)(A) or (B), as the case may be, is derived, directly or indirectly, from a share described in clause (A). (revenu fractionné)

(5) Subsection 120.4(1) of the Act is amended by adding the following in alphabetical order:

arm's length capital, of a specified individual, means property of the individual if the property, or property for which it is a substitute, was not

(a) acquired as income from, or a taxable capital gain or profit from the disposition of, another property that was derived directly or indirectly from a related business in respect of the specified individual;

(b) borrowed by the specified individual under a loan or other indebtedness; or

(c) transferred, directly or indirectly by any means whatever, to the specified individual from a person who was related to the specified individual (other than as a consequence of the death of a person). (capital indépendant)

excluded business, of a specified individual for a taxation year, means a business if the specified individual is actively engaged on a regular, continuous and substantial basis in the activities of the business in either

(a) the taxation year, except in respect of an amount described in paragraph (e) of the definition split income; or

(b) any five prior taxation years of the specified individual. (entreprise exclue)

excluded shares, of a specified individual at any time, means shares of the capital stock of a corporation owned by the specified individual if

(a) the following conditions are met:

(i) less than 90% of the business income of the corporation for the last taxation year of the corporation that ends at or before that time (or, if no such taxation year exists, for the taxation year of the corporation that includes that time) was from the provision of services, and

(ii) the corporation is not a professional corporation;

(b) immediately before that time, the specified individual owns shares of the capital stock of the corporation that

(i) give the holders thereof 10% or more of the votes that could be cast at an annual meeting of the shareholders of the corporation, and

(ii) have a fair market value of 10% or more of the fair market value of all of the issued and outstanding shares of the capital stock of the corporation; and

(c) all or substantially all of the income of the corporation for the relevant taxation year in subparagraph (a)(i) is income that is not derived, directly or indirectly, from one or more related businesses in respect of the specified individual other than a business of the corporation. (actions exclues)

reasonable return, in respect of a specified individual for a taxation year, means a particular amount derived directly or indirectly from a related business in respect of the specified individual that

(a) would, if this subsection were read without reference to subparagraph (f)(ii) or (g)(ii) of the definition excluded amount, be an amount described in the definition split income in respect of the specified individual for the year; and

(b) is reasonable having regard to the following factors relating to the relative contributions of the specified individual, and each source individual in respect of the specified individual, in respect of the related business:

(i) the work they performed in support of the related business,

(ii) the property they contributed, directly or indirectly, in support of the related business,

(iii) the risks they assumed in respect of the related business,

(iv) the total of all amounts that were paid or that became payable, directly or indirectly, by any person or partnership to, or for the benefit of, them in respect of the related business, and

(v) such other factors as may be relevant. (rendement raisonnable)

related business, in respect of a specified individual for a taxation year, means

(a) a business carried on by

(i) a source individual in respect of the specified individual at any time in the year, or

(ii) a partnership, corporation or trust if a source individual in respect of the specified individual at any time in the year is actively engaged on a regular basis in the activities of the partnership, corporation or trust related to earning income from the business;

(b) a business of a particular partnership, if a source individual in respect of the specified individual at any time in the year has an interest — including directly or indirectly — in the particular partnership; and

(i) a source individual in respect of the specified individual owns

(A) shares of the capital stock of the corporation, or

(B) property that derives, directly or indirectly, all or part of its fair market value from shares of the capital stock of the corporation, and

(ii) it is the case that

0.1A ≤ B + C

where

A is the total fair market value of all of the issued and outstanding shares of the capital stock of the corporation,

B is the total fair market value of property described in clause (i)(A), and

C is the portion of the total fair market value of property described in clause (i)(B) that is derived from shares of the capital stock of the corporation. (entreprise liée)

safe harbour capital return, of a specified individual for a taxation year, means an amount that does not exceed the amount determined by the formula

A × B

where

A is the rate equal to the highest rate of interest prescribed under paragraph 4301(c) of the Income Tax Regulations in effect for a quarter in the year; and

B is the total of all amounts each of which is determined by the formula

C × D/E

where

C is the fair market value of property contributed by the specified individual in support of a related business at the time it was contributed,

D is the number of days in the year that the property (or property substituted for it) is used in support of the related business and has not directly or indirectly, in any manner whatever, been returned to the specified individual, and

E is the number of days in the year. (rendement exonéré)

source individual, in respect of a specified individual for a taxation year, means an individual (other than a trust) who, at any time in the year, is

(a) resident in Canada; and

(b) related to the specified individual. (particulier source)

(6) Section 120.4 of the Act is amended by adding the following after subsection (1):

Additional rules — specified individual

(1.1) For the purpose of applying this section in respect of a specified individual in respect of a taxation year,

(a) an individual is deemed to be actively engaged on a regular, continuous and substantial basis in the activities of a business in a taxation year of the individual if the individual works in the business at least an average of 20 hours per week during the portion of the year in which the business operates;

(b) if an amount would — if this section were read without reference to this paragraph — be split income of a specified individual who has attained the age of 17 years before the year in respect of a property, and that property was acquired by, or for the benefit of, the specified individual as a consequence of the death of another person, then

(i) for the purpose of applying paragraph (b) of the definition reasonable return in subsection (1), to the extent that the particular amount referred to in that paragraph is in respect of the property, then the factors referred to in that paragraph in respect of the other person are to be included for the purpose of determining a reasonable return in respect of the individual,

(ii) for the purposes of this subparagraph and the definition excluded business in subsection (1), if the other person was actively engaged on a regular, substantial and continuous basis in the activities of a business throughout five previous taxation years, then the individual is deemed to have been actively engaged on a regular, substantial and continuous basis in the business throughout those five years, and

(iii) for the purpose of applying paragraph (g) of the definition excluded amount in subsection (1) in respect of that property, the individual is deemed to have attained the age of 24 years before the year if the other person had attained the age of 24 years before the year;

(c) an amount that is a specified individual's income for a taxation year from, or the specified individual's taxable capital gain or profit for the year from the disposition of, a property is deemed to be an excluded amount in respect of the specified individual for the taxation year if

(i) the following conditions are met:

(A) the amount would be an excluded amount in respect of the specified individual's spouse or common-law partner for the year, if the amount were included in computing the spouse or common-law partner's income for the year, and

(B) the spouse or common law partner has attained the age of 64 years before the year, or

(ii) the amount would have been an excluded amount in respect of an individual who was, immediately before their death, the specified individual's spouse or common-law partner, if the amount were included in computing the spouse or common-law partner's income for their last taxation year (determined as if this section applies in respect of that year);

(d) for greater certainty, an amount derived directly or indirectly from a business includes

(i) an amount that

(A) is derived from the provision of property or services to, or in support of, the business, or

(B) arises in connection with the ownership or disposition of an interest in the person or partnership carrying on the business, and

(ii) an amount derived from an amount described in this paragraph; and

(e) for the purposes of this section, an individual is deemed not to be related to their spouse or common-law partner at any time in a year if, at the end of the year, the individual is living separate and apart from their spouse or common-law partner because of a breakdown of their marriage or common-law partnership.

(7) Subsections 120.4(3) to (5) of the Act are replaced by the following:

Tax payable by a specified individual

(3) Notwithstanding any other provision of this Act, if an individual is a specified individual for a taxation year, the individual's tax payable under this Part for the year shall not be less than the amount by which the amount added under subsection (2) to the individual's tax payable under this Part for the year exceeds the amount determined by the formula

A + B

where

A is the amount deducted under section 118.3 in computing the individual's tax payable under this Part for the year; and

B is the total of all amounts each of which is the amount that

(a) may be deducted under section 121 or 126 in computing the individual's tax payable under this Part for the year, and

(b) can reasonably be considered to be in respect of an amount included in computing the individual's split income for the year.

Taxable capital gain

(4) If a specified individual who has not attained the age of 17 years before a taxation year would have for the taxation year, if this Act were read without reference to this section, a taxable capital gain (other than an excluded amount) from a disposition of shares (other than shares of a class listed on a designated stock exchange or shares of a mutual fund corporation) that are transferred, either directly or indirectly, in any manner whatever, to a person with whom the specified individual does not deal at arm's length, then the amount of that taxable capital gain is deemed not to be a taxable capital gain and twice the amount is deemed to be received by the specified individual in the year as a taxable dividend that is not an eligible dividend.

Taxable capital gain of trust

(5) If a specified individual who has not attained the age of 17 years before a the taxation year would be, if this Act were read without reference to this section, required under subsection 104(13) or 105(2) to include an amount in computing the specified individual's income for the taxation year, then to the extent that the amount can reasonably be considered to be attributable to a taxable capital gain (other than an excluded amount) of a trust from a disposition of shares (other than shares of a class listed on a designated stock exchange or shares of a mutual fund corporation) that are transferred, either directly or indirectly, in any manner whatever, to a person with whom the specified individual does not deal at arm's length, subsections 104(13) and 105(2) do not apply in respect of the amount and twice the amount is deemed to be received by the specified individual in the year as a taxable dividend that is not an eligible dividend.

(8) Subsections (1) to (7) apply to the 2018 and subsequent taxation years. For the 2018 taxation year, the portion of paragraph (b) of the definition excluded shares in subsection 120.4(1) of the Act before subparagraph (i), as enacted by subsection (5), is to be read as follows:

(b) immediately before that time or the end of 2018, the shares

14 (1) Paragraph 121(a) of the Act is replaced by the following:

(a) the product of the amount, if any, that is required by subparagraph 82(1)(b)(i) to be included in computing the individual's income for the year multiplied by

(i) for the 2018 taxation year, 8/11, and

(ii) for taxation years after 2018, 9/13, and

(2) Subsection (1) applies to the 2018 and subsequent taxation years.

15 (1) Paragraph (b) of the definition adjusted income in subsection 122.5(1) of the Act is replaced by the following:

(b) deductible under paragraph 20(1)(ww) or 60(y) or (z). (revenu rajusté)

(2) Subsection (1) applies to the 2018 and subsequent taxation years.

16 (1) Paragraph (b) of the definition adjusted income in section 122.6 of the Act is replaced by the following:

(b) deductible under paragraph 20(1)(ww) or 60(y) or (z); (revenu modifié)

(2) Subsection (1) applies to the 2018 and subsequent taxation years.

17 The portion of subsection 122.61(5) of the Act before paragraph (a) is replaced by the following:

Annual adjustment

(5) Each amount expressed in dollars in subsection (1) shall be adjusted so that, where the base taxation year in relation to a particular month is after 2016, the amount to be used under that subsection for the month is the total of

18 (1) The heading of Subdivision A.2 of Division E of Part 1 of the Act is replaced by the following:

Canada Workers Benefit

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

19 (1) Paragraph (c) of the definition adjusted net income in subsection 122.7(1) of the Act is replaced by the following:

(2) The descriptions of A and B in subsection 122.7(2) of the Act are replaced by the following:

A is

(a) if the individual had neither an eligible spouse nor an eligible dependant, for the taxation year, the lesser of $1,355 and 26% of the amount, if any, by which the individual's working income for the taxation year exceeds $3,000, or

(b) if the individual had an eligible spouse or an eligible dependant, for the taxation year, the lesser of $2,335 and 26% of the amount, if any, by which the total of the working incomes of the individual and, if applicable, of the eligible spouse, for the taxation year, exceeds $3,000; and

B is

(a) if the individual had neither an eligible spouse nor an eligible dependant, for the taxation year, 12% of the amount, if any, by which the adjusted net income of the individual for the taxation year exceeds $12,820, or

(b) if the individual had an eligible spouse or an eligible dependant, for the taxation year, 12% of the amount, if any, by which the total of the adjusted net incomes of the individual and, if applicable, of the eligible spouse, for the taxation year, exceeds $17,025.

(3) The descriptions of C and D in subsection 122.7(3) of the Act are replaced by the following:

C is the lesser of $700 and 26% of the amount, if any, by which the individual's working income for the taxation year exceeds $1,150; and

D is

(a) if the individual had neither an eligible spouse nor an eligible dependant, for the taxation year, 12% of the amount, if any, by which the individual's adjusted net income for the taxation year exceeds $24,111,

(b) if the individual had an eligible spouse for the taxation year who was not entitled to deduct an amount under subsection 118.3(1) for the taxation year, or had an eligible dependant for the taxation year, 12% of the amount, if any, by which the total of the adjusted net incomes of the individual and, if applicable, of the eligible spouse, for the taxation year, exceeds $36,483, or

(c) if the individual had an eligible spouse for the taxation year who was entitled to deduct an amount under subsection 118.3(1) for the taxation year, 6% of the amount, if any, by which the total of the adjusted net incomes of the individual and of the eligible spouse, for the taxation year, exceeds $36,483.

(4) Subsection (1) applies to the 2018 and subsequent taxation years.

(5) Subsections (2) and (3) come into force on January 1, 2019.

20 (1) Paragraphs 125(1.1)(a) and (b) of the Act are replaced by the following:

(a) that proportion of 17.5% that the number of days in the taxation year that are before 2018 is of the number of days in the taxation year,

(b) that proportion of 18% that the number of days in the taxation year that are in 2018 is of the number of days in the taxation year, and

(c) that proportion of 19% that the number of days in the taxation year that are after 2018 is of the number of days in the taxation year.

(2) Subsection 125(5.1) of the Act is replaced by the following:

Business limit reduction

(5.1) Notwithstanding subsections (2), (3), (4) and (5), a Canadian-controlled private corporation's business limit for a particular taxation year ending in a calendar year is the amount, if any, by which its business limit otherwise determined for the particular taxation year exceeds the greater of

(a) the amount determined by the formula

A × B/$11,250

where

A is the amount that would, but for this subsection, be the corporation's business limit for the particular taxation year, and

B is the amount determined by the formula

0.225% × (C – $10 million)

where

C is

(i) if, in both the particular taxation year and the preceding taxation year, the corporation is not associated with any corporation, the taxable capital employed in Canada (within the meaning assigned by subsection 181.2(1) or 181.3(1) or section 181.4, as the case may be) of the corporation for the preceding taxation year,

(ii) if, in the particular taxation year, the corporation is not associated with any corporation but was associated with one or more corporations in the preceding taxation year, the taxable capital employed in Canada (within the meaning assigned by subsection 181.2(1) or 181.3(1) or section 181.4, as the case may be) of the corporation for the particular taxation year, or

(iii) if, in the particular taxation year, the corporation is associated with one or more particular corporations, the total of all amounts each of which is the taxable capital employed in Canada (within the meaning assigned by subsection 181.2(1) or 181.3(1) or section 181.4, as the case may be) of the corporation or of any of the particular corporations for its last taxation year that ended in the preceding calendar year, and

(b) the amount determined by the formula

D/$500,000 × 5(E - $50,000)

where

D is the amount determined for A in paragraph (a), and

E is the total of all amounts each of which is the adjusted aggregate investment income of the corporation, or of any corporation with which it is associated at any time in the particular taxation year, for each taxation year of the corporation, or associated corporation, as the case may be, that ended in the preceding calendar year.

Anti-avoidance

(5.2) A particular corporation and another corporation are deemed to be associated with each other at a particular time for the purposes of paragraph (5.1)(b) if

(a) the particular corporation lends or transfers property at any time, either directly or indirectly, by means of a trust or by any other means whatever, to the other corporation;

(b) the other corporation is, at the particular time, related to the particular corporation but is not associated with it; and

(c) it may reasonably be considered that one of the reasons the loan or transfer was made was to reduce the amount determined for E in paragraph (5.1)(b) in respect of the particular corporation, or of any corporation with which it is associated, for a taxation year.

(3) Subsection 125(7) of the Act is amended by adding the following in alphabetical order:

active asset, of a particular corporation at any time, means property that is

(a) used at that time principally in an active business carried on primarily in Canada by the particular corporation or by a Canadian-controlled private corporation that is related to the particular corporation,

(b) a share of the capital stock of another corporation if, at that time,

(i) the other corporation is connected with the particular corporation (within the meaning assigned by subsection 186(4) on the assumption that the other corporation is at that time a payer corporation within the meaning of that subsection), and

(ii) the share would be a qualified small business corporation share (as defined in subsection 110.6(1)) if

(A) the references in that definition to an "individual" were references to the particular corporation, and

(B) that definition were read without reference to "the individual's spouse or common law partner", or

(i) at that time, the fair market value of the particular corporation's interest in the partnership is equal to or greater than 10% of the total fair market value of all interests in the partnership,

(ii) throughout the 24–month period ending before that time, more than 50% of the fair market value of the property of the partnership was attributable to property described in this paragraph or in paragraph (a) or (b), and

(iii) at that time, all or substantially all of the fair market value of the property of the partnership was attributable to property described in this paragraph or in paragraph (a) or (b); (bien actif)

adjusted aggregate investment income, of a corporation (other than a corporation that is deemed not to be a private corporation by subsection 136(1) or 137(7) or section 141.1) for a taxation year, means the amount that would be the aggregate investment income (as defined in subsection 129(4)) of the corporation for the year, if

(a) paragraph (a) of that definition read as follows:

(a) the amount, if any, by which

(i) the eligible portion of the corporation's taxable capital gains (other than taxable capital gains from the disposition of property that is, at the time of disposition, an active asset of the corporation) for the year

exceeds

(ii) the eligible portion of its allowable capital losses (other than allowable capital losses from the disposition of property that is, at the time of disposition, an active asset of the corporation) for the year, or

(b) subparagraph (b)(iii) of that definition read as follows:

(iii) a dividend from a corporation connected with it (within the meaning assigned by subsection 186(4) on the assumption that the corporation is at that time a payer corporation within the meaning of that subsection), and

(a) includes

(i) the income or loss from a specified investment business carried on by it, and

(ii) amounts in respect of a life insurance policy that are included in computing the corporation's income for the year, to the extent that the amounts would not otherwise be included in the computation of the corporation's aggregate investment income, but

and

(d) no amount were deducted under subsection 91(4) by the corporation in computing its income for the year; (revenu de placement total ajusté)

(4) Subsection (1) applies to the 2018 and subsequent taxation years.

(5) Subsections (2) and (3) apply to taxation years that begin after 2018. However, subsections (2) and (3), 7(1), 22(1) to (5), 23(1) and (2) and 29(1) also apply to a taxation year of a corporation that begins before 2019 and ends after 2018 if

(a) the corporation's preceding taxation year was, because of a transaction or event or a series of transactions or events, shorter than it would have been in the absence of that transaction, event or series; and

(b) one of the reasons for the transaction, event or series was to defer the application of subsections (2) and (3) or 22(1) to (5) to the corporation.

21 (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 2018 and before 2020 (including, for greater certainty, an expense that is deemed by subsection 66(12.66) to be incurred before 2020) 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 2018 and before April 2019, 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 2018 and before April 2019; (dépense minière déterminée)

(3) Subsections (1) and (2) apply in respect of expenses renounced under a flow-through share agreement entered into after March 2018.

22 (1) Paragraph 129(1)(a) of the Act is replaced by the following:

(a) may, on sending the notice of assessment for the year, refund without application an amount (in this Act referred to as its "dividend refund" for the year) in respect of taxable dividends paid by the corporation on shares of its capital stock in the year, and at a time when it was a private corporation, equal to the total of

(i) in respect of eligible dividends, an amount equal to the lesser of

(A) 38 1/3% of the total of all eligible dividends paid by it in the year, and

(B) its eligible refundable dividend tax on hand at the end of the year, and

(ii) in respect of taxable dividends (other than eligible dividends), an amount equal to the total of

(A) the lesser of

(I) 38 1/3% of the total of all taxable dividends (other than eligible dividends) paid by it in the year, and

(II) its non-eligible refundable dividend tax on hand at the end of the year, and

(B) either

(I) if the amount determined under subclause (A)(I) exceeds the amount determined under subclause (A)(II), the lesser of

1 the amount of the excess, and

2 the amount by which the corporation's eligible refundable dividend tax on hand at the end of the year exceeds the amount, if any, determined under subparagraph (i) for the year, and

(II) in any other case, nil; and

(2) The portion of subsection 129(1.1) of the Act before paragraph (a) is replaced by the following:

Dividends paid to bankrupt controlling corporation

(1.1) In determining the dividend refund for a taxation year ending after 1977 of a particular corporation, no amount may be included under clause (1)(a)(i)(A), subclause (1)(a)(ii)(A)(I) or sub-subclause (1)(a)(ii)(B)(I)1 in respect of a taxable dividend paid to a shareholder that

(3) Subsection 129(3) of the Act is repealed.

(4) Subsection 129(4) of the Act is amended by adding the following in alphabetical order:

eligible refundable dividend tax on hand, of a particular corporation at the end of a taxation year, means the amount, if any, by which the total of

(a) the total of the taxes payable under Part IV by the particular corporation for the year in respect of

(i) eligible dividends received by the particular corporation in the year from corporations other than corporations with which the particular corporation is connected (in this paragraph, within the meaning assigned by subsection 186(4) on the assumption that the other corporation is at that time a payer corporation within the meaning of that subsection), and

(ii) taxable dividends received by the particular corporation in the year from corporations that are connected with the particular corporation to the extent that such dividends caused a dividend refund to those corporations from their eligible refundable dividend tax on hand, and

(b) where the particular corporation was a private corporation at the end of its preceding taxation year, the particular corporation's eligible refundable dividend tax on hand at the end of that preceding year

exceeds

(c) the total of all amounts each of which is the portion, if any, of the particular corporation's dividend refund from its eligible refundable dividend tax on hand determined, for its preceding taxation year, under

(i) subparagraph (1)(a)(i), and

(ii) clause (1)(a)(ii)(B). (impôt en main remboursable au titre de dividendes déterminés)

non-eligible refundable dividend tax on hand, of a corporation at the end of a taxation year, means the amount, if any, by which the total of

(a) if the corporation was a Canadian-controlled private corporation throughout the year, the least of

(i) the amount determined by the formula

A - B

where

A is 30 2/3% of the corporation's aggregate investment income for the year, and

B is the amount, if any, by which

(A) the amount deducted under subsection 126(1) from the tax for the year otherwise payable by it under this Part

exceeds

(B) 8% of its foreign investment income for the year,

(ii) 30 2/3% of the amount, if any, by which the corporation's taxable income for the year exceeds the total of

(A) the least of the amounts determined under paragraphs 125(1)(a) to (c) in respect of the corporation for the year,

(B) 100/(38 2/3) of the total of amounts deducted under subsection 126(1) from its tax for the year otherwise payable under this Part, and

(C) the amount determined by multiplying the total of amounts deducted under subsection 126(2) from its tax for the year otherwise payable under this Part, by the relevant factor for the year, and

(iii) the corporation's tax for the year payable under this Part,

(b) the total of the taxes payable under Part IV by the corporation for the year less the amount determined under paragraph (a) of the definition eligible refundable dividend tax on hand in respect of the corporation for the year, and

(c) if the corporation was a private corporation at the end of its preceding taxation year, the corporation's non-eligible refundable dividend tax on hand at the end of that preceding year

exceeds

(d) the portion, if any, of the corporation's dividend refund from its non-eligible refundable dividend tax on hand determined, for its preceding taxation year, under clause (1)(a)(ii)(A). (impôt en main remboursable au titre de dividendes non déterminés)

(5) Section 129 of the Act is amended by adding the following after subsection (4):

2019 transitional RDTOH

(5) The following rules apply to a corporation's first taxation year in respect of which the definition eligible refundable dividend tax on hand in subsection (4) applies:

(a) if the corporation is a Canadian-controlled private corporation throughout the taxation year and its preceding taxation year and is not a corporation in respect of which an election under subsection 89(11) applies to the taxation year or the preceding taxation year,

(i) for the purpose of applying paragraph (b) of the definition eligible refundable dividend tax on hand in respect of the corporation at the end of the taxation year, the corporation's eligible refundable dividend tax on hand at the end of its preceding taxation year is deemed to be the amount, if any, that is the lesser of

(A) the amount determined by the formula

A - B

where

A is the corporation's refundable dividend tax on hand at the end of its preceding taxation year, and

B is the corporation's dividend refund for its preceding taxation year, and

(B) the amount determined by the formula

(C - D) × E

where

C is the corporation's general rate income pool at the end of its preceding taxation year,

D is the amount, if any, by which

(I) the total of all amounts each of which is an eligible dividend paid by the corporation in its preceding taxation year

exceeds

(II) the total of all amounts each of which is an excessive eligible dividend designation made by the corporation in its preceding taxation year, and

E is 38 1/3%, and

(ii) for the purpose of applying paragraph (c) of the definition non-eligible refundable dividend tax on hand in respect of the corporation at the end of the taxation year, the corporation's non-eligible refundable dividend tax on hand at the end of its preceding taxation year is deemed to be the amount determined by the formula

A - B

where

A is the amount determined under clause (a)(i)(A) in respect of the corporation at the end of the preceding taxation year, and

B is the amount determined under clause (a)(i)(B) in respect of the corporation at the end of the preceding taxation year; and

(b) in any other case, for the purpose of applying paragraph (b) of the definition eligible refundable dividend tax on hand in respect of the corporation at the end of the taxation year, the corporation's eligible refundable dividend tax on hand at the end of its preceding taxation year is deemed to be the amount that would be determined for clause (a)(i)(A) if paragraph (a) applied to the corporation in respect of the taxation year.

2019 transitional RDTOH — amalgamations

(5.1) Subsection (5) applies with such modifications as are necessary for the purpose of applying paragraph 87(2)(aa) in respect of a corporation if

(a) the corporation is a predecessor corporation (within the meaning assigned by subsection 87(1)) in respect of an amalgamation (within the meaning assigned by subsection 87(1));

(b) the corporation has an amount of refundable dividend tax on hand at the end of its taxation year that ends because of paragraph 87(2)(a); and

(c) the first taxation year of the new corporation (within the meaning assigned by subsection 87(1)) in respect of the amalgamation is one to which the definition eligible refundable dividend tax on hand in subsection (4) applies.

(6) Subject to subsection 20(5), subsections (1) to (5) apply to taxation years that begin after 2018.

23 (1) Paragraph 131(5)(a) of the Act is replaced by the following:

(a) is deemed for the purposes of paragraph 87(2)(aa) and section 129 to have been a private corporation throughout the year, except that its non-eligible refundable dividend tax on hand (as defined in subsection 129(4)) at the end of the year shall be determined without reference to paragraph (a) of that definition; and

(2) Paragraph 131(11)(a) of the Act is replaced by the following:

(a) for the purposes of subparagraphs (a)(i) and (ii) of the definition non-eligible refundable dividend tax on hand in subsection 129(4), the amount deducted under paragraph 111(1)(b) from the corporation's income for each taxation year ending after that time shall be deemed to be nil;

(3) Subject to subsection 20(5), subsections (1) and (2) apply to taxation years that begin after 2018.

24 Clause (a)(ii)(B.1) of the definition disability savings plan in subsection 146.4(1) of the Act is replaced by the following:

(B.1) if the arrangement is entered into before 2024, a qualifying family member in relation to the beneficiary who, at the time the arrangement is entered into, is a qualifying person in relation to the beneficiary,

25 (1) Subparagraph (a)(iv) of the definition qualified donee in subsection 149.1(1) of the Act is replaced by the following:

(iv) a university outside Canada, the student body of which ordinarily includes students from Canada, that has applied for registration, or

(2) Subsection (1) is deemed to have come into force on February 27, 2018, except that

(a) if a university has applied for registration prior to February 27, 2018 and is registered by the Minister on or after that day, subsection (1) applies in respect of the university as of the day it applied for registration; and

(b) any university named in Schedule VIII to the Income Tax Regulations at the end of February 26, 2018 is deemed to have applied for registration.

26 (1) Subsection 160(1.2) of the Act is replaced by the following:

Joint and several, or solidary, liability — tax on split income

(1.2) If an amount is required to be added because of subsection 120.4(2) in computing a specified individual's tax payable under this Part for a taxation year and the specified individual has not attained the age of 24 years before the start of the year, the following rules apply:

(a) subject to paragraph (b), a particular individual is jointly and severally, or solidarily, liable with the specified individual for the amount if

(i) where the specified individual has not attained the age of 17 years before the year, the particular individual is a parent of the specified individual, and

(ii) where the specified individual has attained the age of 17 years before the year,

(A) the particular individual is a source individual in respect of the specified individual,

(B) the amount was derived directly or indirectly from a related business (within the meaning of paragraph 120.4(1.1)(d)) in respect of the specified individual, and

(C) the particular individual meets the conditions in any of paragraphs (a) to (c) in the definition related business in subsection 120.4(1) in respect of the related business;

(b) the particular individual's liability under paragraph (a) in respect of the specified individual for the year is to be determined as though the only amounts included in the specified individual's split income for the year are amounts derived from the related business referred to in subparagraph (a)(ii); and

(i) the specified individual under any other provision of this Act, or

(ii) the particular individual for the interest that the particular individual is liable to pay under this Act on an assessment in respect of the amount that the particular individual is liable to pay because of this subsection.

(2) Subsection (1) applies to the 2018 and subsequent taxation years.

27 (1) The portion of subsection 162(6) of the Act before paragraph (a) is replaced by the following:

Failure to provide identification number

(6) Every person or partnership who fails to provide on request their business number, their Social Insurance Number, their trust account number or their U.S. federal taxpayer identifying number to a person required under this Act or the Regulations to make an information return requiring the number is liable to a penalty of $100 for each such failure, unless

(2) Subsection (1) applies to the 2018 and subsequent taxation years.

28 (1) Paragraph (b) of the definition adjusted income in subsection 180.2(1) of the Act is replaced by the following:

(b) deductible under paragraph 20(1)(ww) or 60(w), (y) or (z); (revenu modifié)

(2) Subsection (1) applies to the 2018 and subsequent taxation years.

29 (1) Subsection 186(5) of the Act is replaced by the following:

Deemed private corporation

(5) A corporation that is at any time in a taxation year a subject corporation shall, for the purposes of paragraph 87(2)(aa) and section 129, be deemed to be a private corporation at that time, except that its non-eligible refundable dividend tax on hand (as defined in subsection 129(4)) at the end of the year shall be determined without reference to paragraph (a) of that definition.

(2) Subject to subsection 20(5), subsection (1) applies to taxation years that begin after 2018.

30 (1) Subsection 188(1.3) of the Act is replaced by the following:

Eligible donee

(1.3) In this Part, an eligible donee in respect of a particular charity is

(a) a registered charity

(i) of which more than 50% of the members of the board of directors or trustees of the registered charity deal at arm's length with each member of the board of directors or trustees of the particular charity,

(ii) that is not the subject of a suspension under subsection 188.2(1),

(iii) that has no unpaid liabilities under this Act or under the Excise Tax Act,

(iv) that has filed all information returns required by subsection 149.1(14), and

(v) that is not the subject of a certificate under subsection 5(1) of the Charities Registration (Security Information) Act or, if it is the subject of such a certificate, the certificate has been determined under subsection 7(1) of that Act not to be reasonable; or

(b) a municipality in Canada that is approved by the Minister in respect of a transfer of property from the particular charity.

(2) Subsection (1) applies in respect of transfers of property made after February 26, 2018.

31 (1) The portion of subsection 189(6.3) of the Act before paragraph (a) is replaced by the following:

Reduction of liability for penalties

(6.3) If the Minister has assessed a particular person in respect of the particular person's liability for penalties under section 188.1 for a taxation year, and that liability exceeds $1,000, that liability is, at any particular time, reduced by the total of all amounts, each of which is an amount, in respect of a property transferred by the particular person after the day on which the Minister first assessed that liability and before the particular time to another person that was at the time of the transfer an eligible donee described in paragraph 188(1.3)(a) in respect of the particular person, equal to the amount, if any, by which the fair market value of the property, when transferred, exceeds the total of

(2) Subsection (1) applies in respect of transfers of property made on or after February 27, 2018.

32 (1) Paragraph 221(1)(d.1) of the Act is replaced by the following:

(d.1) requiring any person or partnership to provide any information — including their name, address, business number, Social Insurance Number or trust account number — to any class of persons required to make an information return containing that information;

(2) Subsection (1) applies to the 2018 and subsequent taxation years.

33 (1) Subsections 237(1.1) to (3) of the Act are replaced by the following:

Production of number

(1.1) Every person and partnership shall provide their designated number

(a) in any return filed under this Act; and

(b) to another person or partnership at the request of the other person or partnership, if the other person or partnership is required to make an information return pursuant to this Act or the Regulations requiring the designated number.

Designated number

(1.2) For the purpose of subsection (1.1), designated number, of a person or partnership, means

(a) in the case of an individual (other than a trust), their Social Insurance Number;

(b) in the case of a trust, its trust account number; and

Number required in information returns

(2) For the purposes of this Act and the Regulations, a person or partnership required to make an information return requiring a business number, Social Insurance Number or trust account number of another person or partnership

(a) shall make a reasonable effort to obtain the number from the other person or partnership; and

(b) shall not knowingly use, communicate or allow to be communicated, otherwise than as required or authorized under this Act or a regulation, the number without the written consent of the other person or partnership.

Authority to communicate number

(3) A particular person may communicate, or allow to be communicated, a business number, Social Insurance Number or trust account number to another person related to the particular person where the other person is required, by this Act or the Regulations, to make an information return that requires the number.

(2) The portion of subsection 237(4) of the Act before paragraph (a) is replaced by the following:

Authority to communicate number

(4) An insurance corporation may communicate, or allow to be communicated, to another person the business number, Social Insurance Number or trust account number of a particular person or partnership if

(3) Paragraph 237(4)(c) of the Act is replaced by the following:

(c) the other person is required, by this Act or the Regulations, to make an information return, in respect of the disposition of the share or income from the share, that requires the number.

(4) Subsections (1) to (3) apply to the 2018 and subsequent taxation years.

34 (1) Paragraph 237.1(7)(a) of the Act is replaced by the following:

(a) the name, address and the business number, Social Insurance Number or trust account number of each person who so acquires or otherwise invests in the tax shelter in the year,

(2) Subsection (1) applies to the 2018 and subsequent taxation years.

35 (1) Subsection 239(2.3) of the Act is replaced by the following:

Offence with respect to an identification number

(2.3) Every person to whom the business number of a taxpayer or partnership, to whom the Social Insurance Number of an individual or to whom the trust account number of a trust has been provided under this Act or the Regulations, and every officer, employee and agent of such a person, who without written consent of the individual, taxpayer, partnership or trust, as the case may be, knowingly uses, communicates or allows to be communicated the number (otherwise than as required or authorized by law, in the course of duties in connection with the administration or enforcement of this Act or for a purpose for which it was provided by the individual, taxpayer, partnership or trust, as the case may be) is guilty of an offence and liable on summary conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 12 months, or to both.

(2) Subsection (1) applies to the 2018 and subsequent taxation years.

36 (1) Paragraph 241(4)(j.1) of the Act is replaced by the following:

(j.1) provide taxpayer information to an official or a designated person solely for the purpose of permitting the making of an adjustment to a social assistance payment made on the basis of a means, needs or income test if the purpose of the adjustment is to take into account

(i) the amount determined in respect of a person for C in subsection 122.61(1), as it read before July 2018, in respect of a base taxation year (as defined in section 122.6) before 2017, or

(ii) an amount determined in respect of a person under subsection 122.61(1) or (1.1) in respect of a base taxation year (as defined in section 122.6) after 2014;

(2) Subsection (1) comes into force or is deemed to have come into force on July 1, 2018.

37 (1) The portion of the definition business number in subsection 248(1) of the Act before paragraph (a) is replaced by the following:

business number means the number (other than a Social Insurance Number or trust account number) used by the Minister to identify

(2) Subsection 248(1) of the Act is amended by adding the following in alphabetical order:

trust account number means the number (other than a business number)

(a) used by the Minister to identify a trust, and

(b) of which the Minister has notified the trust; (numéro de compte en fiducie)

(3) Subsections (1) and (2) apply to the 2018 and subsequent taxation years.

Deemed Coming into Force

Definition of eligible individual

38 Subparagraph (e)(v) of the definition eligible individual in section 122.6 of the Act, as enacted by subsection 28(1) of the Budget Implementation Act, 2016, No. 1, is deemed to have come into force on January 1, 2005.

2016, c. 14

An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act

39 Section 67 of An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act is repealed.

40 Section 69 of the Act is repealed.

2017, c. 20

Budget Implementation Act, 2017, No. 1

41 (1) Subsection 6(2) of the Budget Implementation Act, 2017, No. 1 is repealed.

(2) Subsection 6(5) of the Act is repealed.

C.R.C., c. 945

Income Tax Regulations

42 (1) Subparagraph 201(1)(b)(ii) of the Income Tax Regulations is replaced by the following:

(ii) in respect of

(A) money on loan to an association, corporation, institution, organization, partnership or trust,

(B) money on deposit with an association, corporation, institution, organization, partnership or trust, or

(2) Subsection (1) applies to the 2018 and subsequent taxation years.

43 (1) Paragraph 229(1)(b) of the Regulations is replaced by the following:

(b) in respect of each member of the partnership who is entitled to a share referred to in paragraph (c) or (d) for the fiscal period, the member's

(i) name,

(ii) address, and

(iii) business number, Social Insurance Number or trust account number, as the case may be;

(2) Subsection (1) applies to the 2018 and subsequent taxation years.

44 (1) Section 3503 of the Regulations and the heading before it are repealed.

(2) Subsection (1) is deemed to have come into force on February 27, 2018.

45 The portion of Class 43.2 in Schedule II to the Regulations before paragraph (a) is replaced by the following:

Property that is acquired after February 22, 2005 and before 2025 (other than property that was included, before it was acquired, in another class in this Schedule by any taxpayer) and that is property that would otherwise be included in Class 43.1

46 (1) Schedule VIII to the Regulations is repealed.

(2) Subsection (1) is deemed to have come into force on February 27, 2018.

2002, c. 22

Excise Act, 2001

47 (1) Subsections 43.1(1) and (2) of the Excise Act, 2001 are replaced by the following:

Definition of inflationary adjusted year

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

Annual 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 April 1 of an 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 March 31 of the inflationary adjusted year, and

B is the amount, rounded to the nearest one-thousandth, or, if the amount is equidistant from two consecutive one-thousandths, rounded to the higher one-thousandth, determined by the formula

C/D

where

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

D is the Consumer Price Index for the 12-month period ending on September 30 of the year preceding the particular year; and

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

(2) Subsection (1) is deemed to have come into force on February 28, 2018.

48 (1) The definition adjustment day in section 58.1 of the Act is amended by striking out "or" at the end of paragraph (a) and by replacing paragraph (b) with the following:

(a.1) February 28, 2018; or

(b) in the case of an inflationary adjusted year, April 1 of that year. (date d'ajustement)

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

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, and that, at the beginning of the adjustment day,

(3) Subsections (1) and (2) are deemed to have come into force on February 28, 2018.

49 (1) Subsection 58.2(2) of the Act is replaced by the following:

Imposition of tax — 2018 increase

(1.1) 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 28, 2018 at the rate of $0.011468 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 April 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 section 1 of Schedule 1 for each five cigarettes on April 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 March 31 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 April 1 of the inflationary adjusted year, and

D is the rate of duty applicable under paragraph 1(a) of Schedule 3 per cigarette on March 31 of the inflationary adjusted year.

(2) Subsection (1) is deemed to have come into force on February 28, 2018.

50 (1) Subsection 58.5(1) of the Act is amended by striking out "or" at the end of paragraph (a) and by replacing paragraph (b) with the following:

(a.1) in the case of the tax imposed under subsection 58.2(1.1), April 30, 2018; or

(b) in the case of the tax imposed under subsection 58.2(2) in respect of an inflationary adjusted year, May 31 of the inflationary adjusted year.

(2) Subsection (1) is deemed to have come into force on February 28, 2018.

51 (1) Subsection 58.6(1) of the Act is amended by striking out "or" at the end of paragraph (a) and by replacing paragraph (b) with the following:

(a.1) in the case of the tax imposed under subsection 58.2(1.1), April 30, 2018; or

(b) in the case of the tax imposed under subsection 58.2(2) in respect of an inflationary adjusted year, May 31 of the inflationary adjusted year.

(2) Subsection (1) is deemed to have come into force on February 28, 2018.

52 (1) Subparagraphs 216(2)(a)(i) to (iv) of the Act are replaced by the following:

(i) $0.24 multiplied by the number of cigarettes to which the offence relates,

(ii) $0.24 multiplied by the number of tobacco sticks to which the offence relates,

(iii) $0.30 multiplied by the number of grams of manufactured tobacco other than cigarettes or tobacco sticks to which the offence relates, and

(iv) $0.47 multiplied by the number of cigars to which the offence relates, and

(2) Subparagraphs 216(3)(a)(i) to (iv) of the Act are replaced by the following:

(i) $0.36 multiplied by the number of cigarettes to which the offence relates,

(ii) $0.36 multiplied by the number of tobacco sticks to which the offence relates,

(iii) $0.45 multiplied by the number of grams of manufactured tobacco other than cigarettes or tobacco sticks to which the offence relates, and

(iv) $0.93 multiplied by the number of cigars to which the offence relates, and

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

(a) $0.43 per cigarette that was removed in contravention of that subsection,

(b) $0.43 per tobacco stick that was removed in contravention of that subsection, and

(c) $537.48 per kilogram of manufactured tobacco, other than cigarettes and tobacco sticks, that was removed in contravention of that subsection.

54 (1) Paragraph 1(a) of Schedule 1 to the Act is replaced by the following:

(a) $0.59634; or

(2) Subsection (1) is deemed to have come into force on February 28, 2018.

55 (1) Paragraph 2(a) of Schedule 1 to the Act is replaced by the following:

(a) $0.11927; or

(2) Subsection (1) is deemed to have come into force on February 28, 2018.

56 (1) Paragraph 3(a) of Schedule 1 to the Act is replaced by the following:

(a) $7.45425; or

(2) Subsection (1) is deemed to have come into force on February 28, 2018.

57 (1) Paragraph 4(a) of Schedule 1 to the Act is replaced by the following:

(a) $25.95832; or

(2) Subsection (1) is deemed to have come into force on February 28, 2018.

58 (1) Subparagraph (a)(i) of Schedule 2 to the Act is replaced by the following:

(i) $0.09331, or

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

(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 88%.

(3) Subsections (1) and (2) are deemed to have come into force on February 28, 2018.

2014, c. 20

Economic Action Plan 2014 Act, No. 1

59 Subsection 76(5) of the Economic Action Plan 2014 Act, No. 1 is replaced by the following:

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

60 Subsection 78(3) of the Act is replaced by the following:

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

61 Subsection 79(4) of the Act is replaced by the following:

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

62 Subsection 80(4) of the Act is replaced by the following:

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

63 Subsection 81(4) of the Act is replaced by the following:

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

2014, c. 39

Economic Action Plan 2014 Act, No. 2

64 Subsection 100(4) of the Economic Action Plan 2014 Act, No. 2 is replaced by the following:

(4) Subsection (2) is deemed to have come into force on February 28, 2018.

65 Subsection 101(2) of the Act is replaced by the following:

(2) Subsection (1) is deemed to have come into force on February 28, 2018.

2017, c. 20

Budget Implementation Act, 2017, No. 1

66 (1) Subsection 45(3) of the Budget Implementation Act, 2017, No. 1 is repealed.

(2) Subsection 45(5) of the Act is repealed.

Application

67 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 to the Excise Act, 2001, as enacted by sections 54 to 57, and subparagraph (a)(i) and paragraph (b) of Schedule 2 to the Excise Act, 2001, as enacted by section 58, had been assented to on February 28, 2018.

Coordination with the Cannabis Act

68 (1) If Bill C-45, introduced in the 1st session of the 42nd Parliament and entitled the Cannabis Act (referred to in this section and section 118 as the "other Act"), receives royal assent, then for the purposes of this section and sections 117 and 118, commencement day means the day on which subsection 204(1) of the other Act comes into force.

(2) If the other Act receives royal assent, then sections 69 to 78, subsection 79(1), section 84, subsection 85(2), sections 87, 89 to 106 and 108 to 113 and subsection 115(1) come into force on the first day on which both this Act and the other Act have received royal assent.

(3) Despite subsection (2), if the other Act receives royal assent, then sections 158.02, 158.09 to 158.12, 158.15 and 158.16 of the Excise Act, 2001, as enacted by section 73, come into force on commencement day.

(4) If the other Act receives royal assent, then subsection 79(2), sections 80 to 83, subsections 85(1) and (3), sections 86, 88, 107 and 114, subsection 115(2) and section 116 come into force on commencement day.

2002, c. 22

Excise Act, 2001

69 (1) The definitions container, excise stamp, non-duty-paid, stamped and take for use in section 2 of the Excise Act, 2001 are replaced by the following:

container, in respect of a tobacco product or a cannabis product, means a wrapper, package, carton, box, crate, bottle, vial or other container that contains the tobacco product or cannabis product. (contenant)

excise stamp means a tobacco excise stamp or a cannabis excise stamp. (timbre d'accise)

non-duty-paid, in respect of packaged alcohol or a cannabis product, means that duty (other than special duty in the case of alcohol) has not been paid on the alcohol or cannabis product. (non acquitté)

stamped means

(a) in respect of a tobacco product, that a tobacco excise stamp, and all prescribed information in a prescribed format in respect of the tobacco product, are stamped, impressed, printed or marked on, indented into or affixed to the tobacco product or its container in the prescribed manner to indicate that duty, other than special duty, has been paid on the tobacco product; and

(b) in respect of a cannabis product, that a cannabis excise stamp, and all prescribed information in a prescribed format in respect of the cannabis product, are stamped, impressed, printed or marked on, indented into or affixed to the cannabis product or its container in the prescribed manner to indicate that duty has been paid on the cannabis product. (estampillé)

take for use means

(a) in respect of alcohol, to consume, analyze or destroy alcohol or to use alcohol for any purpose that results in a product other than alcohol; and

(b) in respect of a cannabis product, to consume, analyze or destroy the cannabis product. (utilisation pour soi)

(2) Paragraph (a) of the definition packaged in section 2 of the Act is replaced by the following:

(a) in respect of raw leaf tobacco, a tobacco product or a cannabis product, packaged in a prescribed package; or

(3) The definition produce in section 2 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) in respect of a cannabis product, has the same meaning as in subsection 2(1) of the Cannabis Act but also includes packaging the cannabis product. (production)

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

additional cannabis duty means a duty imposed under section 158.2 or 158.22. (droit additionnel sur le cannabis)

cannabis has the same meaning as in subsection 2(1) of the Cannabis Act. (cannabis)

cannabis duty means a duty imposed under section 158.19 or 158.21. (droit sur le cannabis)

cannabis excise stamp means a stamp that is issued by the Minister under subsection 158.03(1) and that has not been cancelled under section 158.07. (timbre d'accise de cannabis)

cannabis licensee means a person that holds a cannabis licence issued under section 14. (titulaire de licence de cannabis)

cannabis plant has the same meaning as in subsection 2(1) of the Cannabis Act. (plante de cannabis)

cannabis product means

(a) a product that is cannabis but that is not industrial hemp produced or imported in accordance with the Cannabis Act or the Industrial Hemp Regulations,

(b) a product that is an industrial hemp by-product,

(d) a prescribed substance, material or thing,

but does not include a prescribed substance, material or thing. (produit du cannabis)

dutiable amount, in respect of a cannabis product, means

(a) if paragraph (b) does not apply, the amount determined by the formula

A × [100%/(100% + B + C)]

where

A is the total of the following amounts that the purchaser is liable to pay to the vendor by reason of, or in respect of, the sale of the cannabis product:

(i) the consideration, as determined for the purposes of Part IX of the Excise Tax Act, for the cannabis product,

(ii) any additional consideration, as determined for the purposes of that Part, for the container in which the cannabis product is contained, and

(iii) any amount of consideration, as determined for the purposes of that Part, that is in addition to the amounts referred to in subparagraphs (i) and (ii), whether payable at the same or any other time, including, but not limited to, any amount charged for or to make provision for advertising, financing, commissions or any other matter,

B is the percentage set out in section 2 of Schedule 7, and

C is

(i) if additional cannabis duty in respect of a specified province is imposed on the cannabis product, the prescribed percentage in respect of the specified province, or

(ii) in any other case, 0%; and

(b) in prescribed circumstances, the amount determined in prescribed manner. (somme passible de droits)

flowering material means the whole or any part (other than viable seeds) of an inflorescence of a cannabis plant at any stage of development, including the infructescence stage of development. (matière florifère)

industrial hemp means cannabis that is industrial hemp for the purposes of the Cannabis Act or the Industrial Hemp Regulations. (chanvre industriel)

industrial hemp by-product means flowering material (other than viable achenes) or non-flowering material that has been removed or separated from an industrial hemp plant and that has not

(a) been disposed of by retting or by otherwise rendering it into a condition such that it cannot be used for any purpose not permitted under the Controlled Drugs and Substances Act; or

(b) been disposed of in a similar manner under the Cannabis Act. (sous-produit de chanvre industriel)

industrial hemp grower means a person that holds a licence or permit under the Controlled Drugs and Substances Act or the Cannabis Act authorizing the person to produce industrial hemp plants. (producteur de chanvre industriel)

industrial hemp plant means a cannabis plant, including a seedling, that is industrial hemp. (plante de chanvre industriel)

low-THC cannabis product means a cannabis product

(a) consisting entirely of cannabis of a class referred to in any of items 1 to 3 of Schedule 4 to the Cannabis Act; and

(b) any part of which does not have a maximum yield of more than 0.3% THC w/w, taking into account the potential to convert delta-9-tetrahydrocannabinolic acid into THC, as determined in accordance with the Cannabis Act. (produit du cannabis à faible teneur en THC)

non-flowering material means any part of a cannabis plant other than flowering material, viable seeds and a part of the plant referred to in Schedule 2 to the Cannabis Act. (matière non florifère)

prescription cannabis drug means a cannabis product that is a drug that has been assigned a drug identification number under the Food and Drug Regulations, other than

(a) a drug or mixture of drugs that may, under the Food and Drugs Act or the Controlled Drugs and Substances Act, be sold to a consumer, as defined in subsection 123(1) of the Excise Tax Act, without a prescription, as defined in section 1 of Part I of Schedule VI to the Excise Tax Act; or

(b) a prescribed cannabis product or a cannabis product of a prescribed class. (drogue de cannabis sur ordonnance)

specified province means a prescribed province. (province déterminée)

THC means Δ⁹-tetrahydrocannabinol ((6aR, 10aR)-6a,7,8,10a-tetrahydro-6,6,9-trimethyl-3-pentyl-6H-dibenzo [b,d] pyran-1-ol). (THC)

tobacco excise stamp means a stamp that is issued by the Minister under subsection 25.1(1) and that has not been cancelled under section 25.5. (timbre d'accise de tabac)

vegetative cannabis plant means a cannabis plant, including a seedling, that has not yet produced reproductive structures, including flowers, fruits or seeds. (plante de cannabis à l'état végétatif)

viable seed means a viable seed of a cannabis plant that is not an industrial hemp plant. (graine viable)

70 (1) Subsection 5(1) of the Act is replaced by the following:

Constructive possession

5 (1) For the purposes of section 25.2, subsections 25.3(1), 30(1), 32(1) and 32.1(1), section 61, subsections 70(1) and 88(1), section 158.04, subsections 158.05(1) and 158.11(1) and (2), sections 230 and 231 and subsection 238.1(1), if one of two or more persons, with the knowledge and consent of the rest of them, has anything in the person's possession, it is deemed to be in the custody and possession of each and all of them.

(2) The portion of subsection 5(2) of the Act before paragraph (a) is replaced by the following:

Definition of possession

(2) In this section and in section 25.2, subsections 25.3(1), 30(1), 32(1) and 32.1(1), section 61, subsections 70(1) and 88(1), section 158.04 and subsections 158.05(1), 158.11(1) and (2) and 238.1(1), possession means not only having in one's own personal possession but also knowingly

71 Section 14 of the Act is amended by adding the following after subsection (1):

Cannabis licence

(1.1) Subject to the regulations, on application, the Minister may issue to a person a cannabis licence for the purposes of this Act.

Cannabis licence — effect

(1.2) A cannabis licence issued to a person shall not have effect before a licence or permit issued to the person under subsection 62(1) of the Cannabis Act comes into effect.

72 (1) Subsection 23(2.1) of the Act is amended by striking out "or" at the end of paragraph (a) and by adding the following after that paragraph:

(a.1) in the case of a cannabis licence, a licence or permit issued to the person under subsection 62(1) of the Cannabis Act is amended, suspended or revoked; or

(2) Paragraph 23(3)(b) of the Act is replaced by the following:

(b) shall, in the case of a spirits licence, a tobacco licence or a cannabis licence, require security in a form satisfactory to the Minister and in an amount determined in accordance with the regulations; and

73 The Act is amended by adding the following after section 158:

PART 4.1

Cannabis

Exclusions

Non-application

158.01 This Part does not apply to

(a) cannabis products that are produced in Canada by an individual for the personal use of the individual and in accordance with the Cannabis Act, but only to the extent that those cannabis products are used in activities that are not prohibited for those cannabis products under that Act;

(b) cannabis products that are produced in Canada by an individual for the medical purposes of the individual and in accordance with the Controlled Drugs and Substances Act or the Cannabis Act, as applicable, but only to the extent that those cannabis products are used by the individual in activities that are not prohibited for those cannabis products under whichever of those Acts is applicable; or

(c) cannabis products that are produced in Canada by a designated person — being an individual who is authorized under the Controlled Drugs and Substances Act or the Cannabis Act to produce cannabis for the medical purposes of another individual — for the medical purposes of the other individual and in accordance with whichever of those Acts is applicable, but only to the extent that those cannabis products are used by the designated person or the other individual in activities that are not prohibited for those cannabis products under whichever of those Acts is applicable.

Cannabis Production and Stamping

Production without licence prohibited

158.02 (1) No person shall, other than in accordance with a cannabis licence issued to the person, produce cannabis products.

Deemed producer

(2) A person that, whether for consideration or otherwise, provides or offers to provide in their place of business equipment for use in that place by another person in the production of a cannabis product is deemed to be producing the cannabis product and the other person is deemed not to be producing the cannabis product.

Exception

(3) Subsection (1) does not apply in respect of

(a) the production of industrial hemp by-products by an industrial hemp grower; and

(b) a prescribed person that produces prescribed cannabis products, or cannabis products of a prescribed class, in prescribed circumstances or for a prescribed purpose.

Issuance of cannabis excise stamps

158.03 (1) On application in the prescribed form and manner, the Minister may issue, to a cannabis licensee, stamps the purpose of which is to indicate that cannabis duty and, if applicable, additional cannabis duty have been paid on a cannabis product.

Quantity of cannabis excise stamps

(2) The Minister may limit the quantity of cannabis excise stamps that may be issued to a person under subsection (1).

Security

(3) No person shall be issued a cannabis excise stamp unless the person has provided any security required by regulation in a form satisfactory to the Minister.

Supply of cannabis excise stamps

(4) The Minister may authorize a producer of cannabis excise stamps to supply, on the direction of the Minister, cannabis excise stamps to a person to which those stamps are issued under subsection (1).

Design and construction

(5) The design and construction of cannabis excise stamps shall be subject to the approval of the Minister.

Counterfeit cannabis excise stamps

158.04 No person shall produce, possess, sell or otherwise supply, or offer to supply, without lawful justification or excuse the proof of which lies on the person, anything that is intended to resemble or pass for a cannabis excise stamp.

Unlawful possession of cannabis excise stamps

158.05 (1) No person shall possess a cannabis excise stamp that has not been affixed to a packaged cannabis product in the manner prescribed for the purposes of the definition stamped in section 2 to indicate that duty has been paid on the cannabis product.

Exceptions — possession

(2) Subsection (1) does not apply to the possession of a cannabis excise stamp by

(a) the person that lawfully produced the cannabis excise stamp;

(b) the person to which the cannabis excise stamp is issued; or

Unlawful supply of cannabis excise stamps

158.06 No person shall dispose of, sell or otherwise supply, or offer to supply, a cannabis excise stamp otherwise than in accordance with this Act.

Cancellation of cannabis excise stamps

158.07 The Minister may

(a) cancel a cannabis excise stamp that has been issued; and

(b) direct that it be returned or destroyed in a manner specified by the Minister.

Unlawful packaging or stamping

158.08 No person shall package or stamp a cannabis product unless the person is a cannabis licensee or a prescribed person.

Unlawful removal

158.09 (1) Except as permitted under section 158.15, no person shall remove a cannabis product from the premises of a cannabis licensee unless it is packaged and

(a) if the cannabis product is intended for the duty-paid market,

(i) it is stamped to indicate that cannabis duty has been paid, and

(ii) if additional cannabis duty in respect of a specified province is imposed on the cannabis product, it is stamped to indicate that the additional cannabis duty has been paid; or

(b) if the cannabis product is not intended for the duty-paid market, all prescribed information is printed on or affixed to its container in a prescribed manner.

Exception

(2) Subsection (1) does not apply to a cannabis licensee that removes from their premises a cannabis product

(a) if the cannabis product is being removed

(i) for delivery to another cannabis licensee,

(ii) for export as permitted under the Cannabis Act,

(iii) for delivery to a person for sterilization in accordance with subparagraph 158.11(3)(a)(ii), or

(iv) for delivery to a person for analysis or destruction in accordance with subparagraph 158.3(a)(v);

(b) if the cannabis product is

(i) a low-THC cannabis product,

(ii) a prescription cannabis drug, or

(iii) a prescribed cannabis product or a cannabis product of a prescribed class; or

Removal by Minister

(3) Subsection (1) does not apply to the removal of a cannabis product for analysis or destruction

(a) by the Minister; or

(b) by the Minister, as defined in subsection 2(1) of the Cannabis Act.

Prohibition — cannabis for sale

158.1 No person shall purchase or receive for sale

(a) a cannabis product from a producer that the person knows, or ought to know, is not

(i) a cannabis licensee, or

(ii) in the case of an industrial hemp by-product, an industrial hemp grower;

(b) a cannabis product that is required under this Act to be packaged and stamped unless it is packaged and stamped in accordance with this Act; or

Selling, etc., unstamped cannabis

158.11 (1) No person, other than a cannabis licensee, shall dispose of, sell, offer for sale, purchase or have in their possession a cannabis product unless

(a) it is packaged; and

(b) it is stamped to indicate that cannabis duty has been paid.

Selling, etc., unstamped cannabis — specified province

(2) No person, other than a cannabis licensee, shall dispose of, sell, offer for sale, purchase or have in their possession a cannabis product in a specified province unless it is stamped to indicate that additional cannabis duty in respect of the specified province has been paid.

Exception — possession of cannabis

(3) Subsections (1) and (2) do not apply to the possession of a cannabis product

(a) by a person that

(i) is a prescribed person that is transporting the cannabis product under prescribed circumstances and conditions,

(ii) is a prescribed person that is sterilizing the cannabis product under prescribed circumstances and conditions,

(iii) is an individual if the cannabis product was imported for their medical purposes in accordance with the Controlled Drugs and Substances Act or the Cannabis Act, as applicable, or

(iv) possesses the cannabis product for analysis or destruction in accordance with subparagraph 158.3(a)(v);

(b) if the cannabis product is

(i) a low-THC cannabis product,

(ii) a prescription cannabis drug, or

(iii) a prescribed cannabis product or a cannabis product of a prescribed class; or

Exception — disposal, sale, etc.

(4) Subsections (1) and (2) do not apply to the disposal, sale, offering for sale or purchase of a cannabis product

(a) if the cannabis product is

(i) a low-THC cannabis product,

(ii) a prescription cannabis drug, or

(iii) a prescribed cannabis product or a cannabis product of a prescribed class; or

(b) in prescribed circumstances or for a prescribed purpose.

Exception — industrial hemp

(5) Subsections (1) and (2) do not apply to

(a) the possession of an industrial hemp by-product by the industrial hemp grower that produced it, if the industrial hemp by-product

(i) is on the industrial hemp grower's property, or

(ii) is being transported by the industrial hemp grower for delivery to or return from a cannabis licensee; and

(b) the disposal, sale or offering for sale of an industrial hemp by-product to a cannabis licensee by the industrial hemp grower that produced it.

Exception — specified province

(6) Subsection (2) does not apply to

(a) the possession of a cannabis product in prescribed circumstances or for a prescribed purpose; or

(b) the disposal, sale, offering for sale or purchase of a cannabis product in prescribed circumstances or for a prescribed purpose.

Sale or distribution by licensee

158.12 (1) No cannabis licensee shall distribute a cannabis product or sell or offer for sale a cannabis product to a person unless

(a) it is packaged;

(b) it is stamped to indicate that cannabis duty has been paid; and

(c) if additional cannabis duty in respect of a specified province is imposed on the cannabis product, it is stamped to indicate that the additional cannabis duty has been paid.

Exception

(2) Subsection (1) does not apply to the distribution, sale or offering for sale of a cannabis product

(a) to a cannabis licensee;

(b) if the cannabis product is exported by the cannabis licensee in accordance with the Cannabis Act;

(i) a low-THC cannabis product,

(ii) a prescription cannabis drug, or

(iii) a prescribed cannabis product or a cannabis product of a prescribed class; or

(d) in prescribed circumstances or for a prescribed purpose.

Packaging and stamping of cannabis

158.13 A cannabis licensee that produces a cannabis product shall not enter the cannabis product into the duty-paid market unless

(a) the cannabis product has been packaged by the licensee;

(b) the package has printed on it prescribed information;

(d) if the cannabis product is to be entered in the duty-paid market of a specified province, the cannabis product is stamped by the licensee to indicate that additional cannabis duty in respect of the specified province has been paid.

Notice — absence of stamping

158.14 (1) The absence on a cannabis product of stamping that indicates that cannabis duty has been paid is notice to all persons that cannabis duty has not been paid on the cannabis product.

Notice — absence of stamping

(2) The absence on a cannabis product of stamping that indicates that additional cannabis duty in respect of a specified province has been paid is notice to all persons that additional cannabis duty in respect of the specified province has not been paid on the cannabis product.

Cannabis — waste removal

158.15 (1) No person shall remove a cannabis product that is waste from the premises of a cannabis licensee other than the cannabis licensee or a person authorized by the Minister.

Removal requirements

(2) If a cannabis product that is waste is removed from the premises of a cannabis licensee, it shall be dealt with in the manner authorized by the Minister.

Re-working or destruction of cannabis

158.16 A cannabis licensee may re-work or destroy a cannabis product in the manner authorized by the Minister.

Responsibility for Cannabis

Responsibility

158.17 Subject to section 158.18, a person is responsible for a cannabis product at any time if

(a) the person is

(i) the cannabis licensee that owns the cannabis product at that time, or

(ii) if the cannabis product is not owned at that time by a cannabis licensee, the cannabis licensee that last owned it; or

(b) the person is a prescribed person or a person that meets prescribed conditions.

Person not responsible

158.18 A person that is responsible for a cannabis product ceases to be responsible for it

(a) if it is packaged and stamped and the duty on it is paid;

(b) if it is consumed or used in the production of a cannabis product that is

(i) a low-THC cannabis product,

(ii) a prescription cannabis drug, or

(iii) a prescribed cannabis product or a cannabis product of a prescribed class;

(d) if it is taken for use in accordance with any of subparagraphs 158.3(a)(i) to (v);

(e) if it is exported in accordance with the Cannabis Act;

(f) if it is lost in prescribed circumstances and the person fulfils any prescribed conditions; or

(g) in prescribed circumstances or if prescribed conditions are met.

Imposition and Payment of Duty on Cannabis

Imposition — flat-rate duty

158.19 (1) Duty is imposed on cannabis products produced in Canada at the time they are packaged in the amount determined under section 1 of Schedule 7.

Imposition — ad valorem duty

(2) Duty is imposed on packaged cannabis products produced in Canada at the time of their delivery to a purchaser in the amount determined under section 2 of Schedule 7.

Duty payable

(3) The greater of the duty imposed under subsection (1) and the duty imposed under subsection (2) is payable by the cannabis licensee that packaged the cannabis products at the time of their delivery to a purchaser and the cannabis products are relieved of the lesser of those duties.

Equal duties

(4) If the amount of duty imposed under subsection (1) is equal to the amount of duty imposed under subsection (2), the duty imposed under subsection (1) is payable by the cannabis licensee that packaged the cannabis products at the time of their delivery to a purchaser and the cannabis products are relieved of the duty imposed under subsection (2).

Imposition — additional cannabis duty

158.2 (1) In addition to the duty imposed under section 158.19, a duty in respect of a specified province is imposed on cannabis products produced in Canada in prescribed circumstances in the amount determined in a prescribed manner.

Duty payable

(2) The duty imposed under subsection (1) is payable by the cannabis licensee that packaged the cannabis products at the time of their delivery to a purchaser.

Duty on imported cannabis

158.21 (1) Duty is imposed on imported cannabis products in the amount that is equal to the greater of

(a) the amount determined in respect of the cannabis products under section 1 of Schedule 7, and

(b) the amount determined in respect of the cannabis products under section 3 of Schedule 7.

Duty payable

(2) The duty imposed under subsection (1) is payable by the importer, owner or other person that is liable under the Customs Act to pay duty levied under section 20 of the Customs Tariff or that would be liable to pay that duty on the cannabis products if they were subject to that duty.

Additional cannabis duty on imported cannabis

158.22 (1) In addition to the duty imposed under section 158.21, a duty in respect of a specified province is imposed on imported cannabis products in prescribed circumstances in the amount determined in a prescribed manner.

Duty payable

Application of Customs Act

158.23 The duties imposed under sections 158.21 and 158.22 on imported cannabis products shall be paid and collected under the Customs Act, and interest and penalties shall be imposed, calculated, paid and collected under that Act, as if the duties were a duty levied under section 20 of the Customs Tariff, and, for those purposes, the Customs Act applies with any modifications that the circumstances require.

Value for duty

158.24 For the purposes of section 3 of Schedule 7 and of any regulations made for the purposes of section 158.22 in respect of imported cannabis products,

(a) the value of a cannabis product is equal to the value of the cannabis product, as it would be determined under the Customs Act for the purpose of calculating duties imposed under the Customs Tariff on the cannabis product at a percentage rate, whether the cannabis product is in fact subject to duty under the Customs Tariff; or

(b) despite paragraph (a), the value of a cannabis product imported in prescribed circumstances shall be determined in prescribed manner.

Duty on cannabis taken for use

158.25 (1) If a particular person is responsible for cannabis products at a particular time when the cannabis products are taken for use, the following rules apply:

(a) if the cannabis products are packaged, they are relieved of the duty imposed under subsection 158.19(1); and

(b) duty is imposed on the cannabis products in the amount that is equal to the greater of

(i) the amount determined in respect of the cannabis products under section 1 of Schedule 7, and

(ii) the amount determined in respect of the cannabis products under section 4 of Schedule 7.

Specified province — duty on cannabis taken for use

(2) If a particular person is responsible for cannabis products at a particular time when the cannabis products are taken for use, a duty in respect of a specified province is imposed on the cannabis products in prescribed circumstances in the amount determined in prescribed manner. This duty is in addition to the duty imposed under subsection (1).

Duty payable

(3) The duty imposed under subsection (1) or (2) is payable at the particular time, and by the particular person, referred to in that subsection.

Duty on unaccounted cannabis

158.26 (1) If a particular person that is responsible at a particular time for cannabis products cannot account for the cannabis products as being, at the particular time, in the possession of a cannabis licensee or in the possession of another person in accordance with subsection 158.11(3) or paragraph 158.11(5)(a), the following rules apply:

(a) if the cannabis products are packaged, they are relieved of the duty imposed under subsection 158.19(1); and

(b) duty is imposed on the cannabis products in the amount that is equal to the greater of

(i) the amount determined in respect of the cannabis products under section 1 of Schedule 7, and

(ii) the amount determined in respect of the cannabis products under section 4 of Schedule 7.

Specified province — duty on unaccounted cannabis

(2) If a particular person that is responsible at a particular time for cannabis products cannot account for the cannabis products as being, at the particular time, in the possession of a cannabis licensee or in the possession of another person in accordance with subsection 158.11(3) or paragraph 158.11(5)(a), a duty in respect of a specified province is imposed on the cannabis products in prescribed circumstances in the amount determined in prescribed manner. This duty is in addition to the duty imposed under subsection (1).

Duty payable

(3) The duty imposed under subsection (1) or (2) is payable at the particular time, and by the particular person, referred to in that subsection.

Exception

(4) Subsection (1) does not apply in circumstances in which the particular person referred to in that subsection is convicted of an offence under section 218.1.

Definition of commencement day

158.27 (1) For the purposes of this section, commencement day has the same meaning as in section 152 of the Cannabis Act.

Duty on cannabis — production before commencement day

(2) Duty is imposed on cannabis products that are produced in Canada and delivered to a purchaser before commencement day for sale or distribution on or after that day in the amount that is equal to the greater of

(a) the amount determined in respect of the cannabis product under section 1 of Schedule 7, and

(b) the amount determined in respect of the cannabis product under section 2 of Schedule 7.

Additional cannabis duty — production before commencement day

(3) In addition to the duty imposed under subsection (2), a duty in respect of a specified province is imposed on cannabis products that are produced in Canada and delivered to a purchaser before commencement day for sale or distribution on or after that day in prescribed circumstances in the amount determined in a prescribed manner.

Duty payable

(4) The duty imposed under subsection (2) or (3) is payable on commencement day by the cannabis licensee that packaged the cannabis product.

Exception

(5) Subsection (2) does not apply to a prescribed cannabis product, or a cannabis product of a prescribed class, that is delivered to a prescribed person in prescribed circumstances or for a prescribed purpose.

Duty relieved — cannabis imported by licensee

158.28 The duties imposed under sections 158.21 and 158.22 are relieved on

(a) a cannabis product that is not packaged and that is imported by a cannabis licensee; or

(b) a prescribed cannabis product, or a cannabis product of a prescribed class, that is imported by a prescribed person in prescribed circumstances or for a prescribed purpose.

Duty relieved — prescribed circumstances

158.29 The duties imposed under any of sections 158.19 to 158.22 and 158.27 are relieved on a prescribed cannabis product, or a cannabis product of a prescribed class, in prescribed circumstances or if prescribed conditions are met.

Duty not payable

158.3 Duty is not payable on

(a) a cannabis product that

(i) is taken for analysis or destroyed by the Minister,

(ii) is taken for analysis or destroyed by the Minister, as defined in subsection 2(1) of the Cannabis Act,

(iii) is taken for analysis by a cannabis licensee in a manner approved by the Minister,

(iv) is destroyed by a cannabis licensee in a manner approved by the Minister,

(v) is delivered by a cannabis licensee to another person for analysis or destruction by that person in a manner approved by the Minister,

(vi) is a low-THC cannabis product,

(vii) is a prescription cannabis drug, or

(viii) is a prescribed cannabis product or a cannabis product of a prescribed class;

(b) a non-duty-paid cannabis product that is removed from the premises of a cannabis licensee for export in accordance with the Cannabis Act; or

(c) a prescribed cannabis product, or a cannabis product of a prescribed class, that is delivered by a cannabis licensee to a prescribed person in prescribed circumstances or for a prescribed purpose.

Quantity of cannabis

158.31 For the purposes of determining an amount of duty in respect of a cannabis product under section 1 of Schedule 7, the following rules apply:

(a) the quantity of flowering material and non-flowering material included in the cannabis product or used in the production of the cannabis product is to be determined in a prescribed manner in prescribed circumstances; and

(b) if paragraph (a) does not apply in respect of the cannabis product,

(i) the quantity of flowering material and non-flowering material included in the cannabis product or used in the production of the cannabis product is to be determined at the time the flowering material and non-flowering material are so included or used and in a manner satisfactory to the Minister, and

(ii) if the quantity of flowering material included in the cannabis product or used in the production of the cannabis product is determined in accordance with subparagraph (i), the particular quantity of that flowering material that is industrial hemp by-product is deemed to be non-flowering material if that particular quantity is determined in a manner satisfactory to the Minister.

Delivery to purchaser

158.32 For the purposes of sections 158.19, 158.2 and 158.27 and for greater certainty, delivery to a purchaser includes

(a) delivering cannabis products, or making them available, to a person other than the purchaser on behalf of or under the direction of the purchaser;

(b) delivering cannabis products, or making them available, to a person that obtains them otherwise than by means of a purchase; and

Time of delivery

158.33 For the purposes of sections 158.19, 158.2 and 158.27, a cannabis product is deemed to be delivered to a purchaser by a cannabis licensee at the earliest of

(a) the time at which the cannabis licensee delivers the cannabis product or makes it available to the purchaser,

(b) the time at which the cannabis licensee causes physical possession of the cannabis product to be transferred to the purchaser, and

(c) the time at which the cannabis licensee causes physical possession of the cannabis product to be transferred to a carrier — being a person that provides a service of transporting goods including, for greater certainty, a service of delivering mail — for delivery to the purchaser.

Dutiable amount

158.34 For the purpose of section 2 of Schedule 7, the dutiable amount of a cannabis product is deemed to be equal to the fair market value of the cannabis product

(a) if the cannabis product is delivered or made available to a person that obtains it otherwise than by means of a purchase; or

(b) in prescribed circumstances.

74 (1) The portion of subsection 159(1) of the Act before paragraph (a) is replaced by the following:

Determination of fiscal months

159 (1) The fiscal months of a person other than a cannabis licensee shall be determined in accordance with the following rules:

(2) Section 159 of the Act is amended by adding the following after subsection (1):

Fiscal months — cannabis licensee

(1.01) For the purposes of this Act, the fiscal months of a cannabis licensee are calendar months.

75 Section 180 of the Act is replaced by the following:

No refund — exportation

180 Subject to this Act, the duty paid on any tobacco product, cannabis product or alcohol entered into the duty-paid market shall not be refunded on the exportation of the tobacco product, cannabis product or alcohol.

76 The Act is amended by adding the following after section 187:

Refund of duty — destroyed cannabis

187.1 The Minister may refund to a cannabis licensee the duty paid on a cannabis product that is re-worked or destroyed by the cannabis licensee in accordance with section 158.16 if the cannabis licensee applies for the refund within two years after the cannabis product is re-worked or destroyed.

77 (1) Paragraph 206(1)(d) of the Act is replaced by the following:

(d) every person that transports a tobacco product or cannabis product that is not stamped or non-duty-paid packaged alcohol.

(2) Section 206 of the Act is amended by adding the following after subsection (2):

Keeping records — cannabis licensee

(2.01) Every cannabis licensee shall keep records that will enable the determination of the amount of cannabis product produced, received, used, packaged, re-worked, sold or disposed of by the licensee.

78 Paragraph 211(6)(e) of the Act is amended by striking out "or" at the end of subparagraph (viii), by adding "or" at the end of subparagraph (ix) and by adding the following after subparagraph (ix):

(x) to an official solely for the administration or enforcement of the Cannabis Act;

79 (1) The portion of section 214 of the Act before paragraph (a) is replaced by the following:

Unlawful production, sale, etc.

214 Every person that contravenes any of sections 25, 25.2 to 25.4, 27 and 29, subsection 32.1(1) and sections 60, 62, 158.04 to 158.06 and 158.08 is guilty of an offence and liable

(2) The portion of section 214 of the Act before paragraph (a), as enacted by subsection (1), is replaced by the following:

Unlawful production, sale, etc.

214 Every person that contravenes any of sections 25, 25.2 to 25.4, 27 and 29, subsection 32.1(1) and sections 60, 62, 158.02, 158.04 to 158.06, 158.08 and 158.1 is guilty of an offence and liable

80 The Act is amended by adding the following after section 218:

Punishment — sections 158.11 and 158.12

218.1 (1) Every person that contravenes section 158.11 or 158.12 is guilty of an offence and liable

(a) on conviction on indictment, to a fine of not less than the amount determined under subsection (2) and not more than the amount determined under subsection (3) or to imprisonment for a term of not more than five years, or to both; or

(b) on summary conviction, to a fine of not less than the amount determined under subsection (2) and not more than the lesser of $500,000 and the amount determined under subsection (3) or to imprisonment for a term of not more than 18 months, or to both.

Minimum amount

(2) The amount determined under this subsection for an offence under subsection (1) is the greater of

(a) the amount determined by the formula

(A + B + C) × 200%

where

A is the amount determined under section 1 of Schedule 7, as that section read at the time the offence was committed, in respect of the cannabis products to which the offence relates,

B is

(i) if the offence occurred in a specified province, 300% of the amount determined for A, and

(ii) in any other case, 0, and

C is

(i) if the offence occurred in a prescribed specified province, 200% of the amount determined for A, and

(ii) in any other case, 0, and

(b) $1,000 in the case of an indictable offence and $500 in the case of an offence punishable on summary conviction.

Maximum amount

(3) The amount determined under this subsection for an offence under subsection (1) is the greater of

(a) the amount determined by the formula

(A + B + C) × 300%

where

A is the amount determined under section 1 of Schedule 7, as that section read at the time the offence was committed, in respect of the cannabis products to which the offence relates,

B is

(i) if the offence occurred in a specified province, 300% of the amount determined for A, and

(ii) in any other case, 0, and

C is

(i) if the offence occurred in a prescribed specified province, 200% of the amount determined for A, and

(ii) in any other case, 0, and

(b) $2,000 in the case of an indictable offence and $1,000 in the case of an offence punishable on summary conviction.

81 Paragraph 230(1)(a) of the Act is replaced by the following:

(a) the commission of an offence under section 214 or subsection 216(1), 218(1), 218.1(1) or 231(1); or

82 Paragraph 231(1)(a) of the Act is replaced by the following:

(a) the commission of an offence under section 214 or subsection 216(1), 218(1) or 218.1(1); or

83 Subsection 232(1) of the Act is replaced by the following:

Part XII.2 of Criminal Code applicable

232 (1) Sections 462.3 and 462.32 to 462.5 of the Criminal Code apply, with any modifications that the circumstances require, in respect of proceedings for an offence under section 214, subsection 216(1), 218(1) or 218.1(1) or section 230 or 231.

84 The Act is amended by adding the following after section 233:

Contravention of section 158.13

233.1 Every cannabis licensee that contravenes section 158.13 is liable to a penalty equal to the amount determined by the formula

(A + B + C) × 200%

where

A is the greater of

(a) the amount determined under section 1 of Schedule 7, as that section read at the time the contravention occurred, in respect of the cannabis products to which the contravention relates, and

(b) the amount obtained by multiplying the fair market value, at the time the contravention occurred, of the cannabis products to which the contravention relates by the percentage set out in section 4 of Schedule 7, as that section read at that time;

B is

(a) if the offence occurred in a specified province, 300% of the amount determined for A, and

(b) in any other case, 0; and

C is

(a) if the offence occurred in a prescribed specified province, 200% of the amount determined for paragraph (b) of the description of A, and

(b) in any other case, 0.

85 (1) Subsection 234(1) of the Act is replaced by the following:

Contravention of section 38, 40, 49, 61, 62.1, 99, 149, 151 or 158.15

234 (1) Every person that contravenes section 38, 40, 49, 61, 62.1, 99, 149, 151 or 158.15 is liable to a penalty of not more than $25,000.

(2) Section 234 of the Act is amended by adding the following after subsection (2):

Failure to comply

(3) Every person that fails to return or destroy stamps as directed by the Minister under paragraph 158.07(b) is liable to a penalty of not more than $25,000.

(3) Subsection 234(3) of the Act, as enacted by subsection (2), is replaced by the following:

Failure to comply

(3) Every person that fails to return or destroy stamps as directed by the Minister under paragraph 158.07(b), or that fails to re-work or destroy a cannabis product in the manner authorized by the Minister under section 158.16, is liable to a penalty of not more than $25,000.

86 The Act is amended by adding the following after section 234:

Contravention of section 158.02, 158.1, 158.11 or 158.12

234.1 Every person that contravenes section 158.02, that receives for sale cannabis products in contravention of section 158.1 or that sells or offers to sell cannabis products in contravention of section 158.11 or 158.12 is liable to a penalty equal to the amount determined by the formula

(A + B + C) × 200%

where

A is the greater of

(a) the amount determined under section 1 of Schedule 7, as that section read at the time the contravention occurred, in respect of the cannabis products to which the contravention relates, and

B is

(a) if the offence occurred in a specified province, 300% of the amount determined for A, and

(b) in any other case, 0; and

C is

(a) if the offence occurred in a prescribed specified province, 200% of the amount determined for paragraph (b) of the description of A, and

(b) in any other case, 0.

87 (1) Paragraph 238.1(1)(a) of the Act is replaced by the following:

(a) the person can demonstrate that the stamps were affixed to tobacco products, cannabis products or their containers in the manner prescribed for the purposes of the definition stamped in section 2 and that duty, other than special duty, has been paid on the tobacco products or cannabis products; or

(2) Subsection 238.1(2) of the Act is replaced by the following:

Amount of the penalty

(2) The amount of the penalty for each excise stamp that cannot be accounted for is equal to

(a) in the case of a tobacco excise stamp, the duty that would be imposed on a tobacco product for which the stamp was issued under subsection 25.1(1); or

(b) in the case of a cannabis excise stamp, five times the total of the following amounts:

(i) the dollar amount set out in paragraph 1(a) of Schedule 7,

(ii) if the stamp is in respect of a specified province, three times the dollar amount set out in paragraph 1(a) of Schedule 7, and

(iii) if the stamp is in respect of a prescribed specified province, $5.00.

88 (1) The portion of section 239 of the Act before paragraph (a) is replaced by the following:

Other diversions

239 Unless section 237 applies, every person is liable to a penalty equal to 200% of the duty that was imposed on packaged alcohol, a tobacco product or a cannabis product if

(2) Paragraph 239(a) of the French version of the Act is replaced by the following:

a) elle a acquis l'alcool emballé ou le produit et les droits n'étaient pas exigibles en raison du but dans lequel elle les a acquis ou de leur destination;

89 Section 264 of the Act is replaced by the following:

Certain things not to be returned

264 Despite any other provision of this Act, any alcohol, specially denatured alcohol, restricted formulation, raw leaf tobacco, excise stamp, tobacco product or cannabis product that is seized under section 260 must not be returned to the person from whom it was seized or any other person unless it was seized in error.

90 Subsection 266(2) of the Act is amended by striking out "and" at the end of paragraph (c), by adding "and" at the end of paragraph (d) and by adding the following after paragraph (d):

(e) a seized cannabis product only to a cannabis licensee.

91 (1) Subsection 304(1) of the Act is amended by adding the following after paragraph (c):

(c.1) respecting the types of security that are acceptable for the purposes of subsection 158.03(3), and the manner by which the amount of the security is to be determined;

(2) Paragraph 304(1)(f) of the Act is replaced by the following:

(f) respecting the information to be provided on tobacco products, packaged alcohol and cannabis products and on containers of tobacco products, packaged alcohol and cannabis products;

(3) Paragraph 304(1)(n) of the Act is replaced by the following:

(n) respecting the sale under section 266 of alcohol, tobacco products, raw leaf tobacco, specially denatured alcohol, restricted formulations or cannabis products seized under section 260;

92 The Act is amended by adding the following after section 304:

Definition of coordinated cannabis duty system

304.1 (1) In this section, coordinated cannabis duty system means the system providing for the payment, collection and remittance of duty imposed under any of sections 158.2 and 158.22 and subsections 158.25(2) and 158.26(2) and any provisions relating to duty imposed under those provisions or to refunds in respect of any such duty.

Coordinated cannabis duty system regulations — transition

(2) The Governor in Council may make regulations, in relation to the joining of a province to the coordinated cannabis duty system,

(a) prescribing transitional measures, including

(i) a tax on the inventory of cannabis products held by a cannabis licensee or any other person, and

(ii) a duty or tax on cannabis products that are delivered prior to the province joining that system; and

(b) generally to effect the implementation of that system in relation to the province.

Coordinated cannabis duty system regulations — rate variation

(3) The Governor in Council may make regulations

(a) prescribing rules in respect of whether, how and when a change in the rate of duty for a specified province applies (in this section any such change in the rate of duty is referred to as a "rate variation"), including rules deeming, in specified circumstances and for specified purposes, the status of anything to be different than what it would otherwise be, including when duty is imposed or payable and when duty is required to be reported and accounted for;

(b) if a manner of determining an amount of duty is to be prescribed in relation to the coordinated cannabis duty system,

(i) specifying the circumstances or conditions under which a change in the manner applies, and

(ii) prescribing transitional measures in respect of a change in the manner, including

(A) a tax on the inventory of cannabis products held by a cannabis licensee or any other person, and

(B) a duty or tax on cannabis products that are delivered prior to the change; and

(c) prescribing amounts and rates to be used to determine any refund that relates to, or is affected by, the coordinated cannabis duty system, excluding amounts that would otherwise be included in determining any such refund, and specifying circumstances under which any such refund shall not be paid or made.

Coordinated cannabis duty system regulations — general

(4) For the purpose of facilitating the implementation, application, administration and enforcement of the coordinated cannabis duty system or a rate variation or the joining of a province to the coordinated cannabis duty system, the Governor in Council may make regulations

(a) prescribing rules in respect of whether, how and when that system applies and rules in respect of other aspects relating to the application of that system in relation to a specified province, including rules deeming, in specified circumstances and for specified purposes, the status of anything to be different than what it would otherwise be, including when duty is imposed or payable and when duty is required to be reported and accounted for;

(b) prescribing rules related to the movement of cannabis products between provinces, including a duty, tax or refund in respect of such movement;

(d) adapting any provision of this Act or of the regulations made under this Act to the coordinated cannabis duty system or modifying any provision of this Act or those regulations to adapt it to the coordinated cannabis duty system;

(e) defining, for the purposes of this Act or the regulations made under this Act, or any provision of this Act or those regulations, in its application to the coordinated cannabis duty system, words or expressions used in this Act or those regulations including words or expressions defined in a provision of this Act or those regulations;

(f) providing that a provision of this Act or of the regulations made under this Act, or a part of such a provision, does not apply to the coordinated cannabis duty system;

(g) prescribing compliance measures, including penalties and anti-avoidance rules; and

(h) generally in respect of the application of that system in relation to a province.

Conflict

(5) If a regulation made under this Act in respect of the coordinated cannabis duty system states that it applies despite any provision of this Act, in the event of a conflict between the regulation and this Act, the regulation prevails to the extent of the conflict.

Definition of cannabis duty system

304.2 (1) In this section, cannabis duty system means the system providing for the payment, collection and remittance of duty imposed under Part 4.1 and any provisions relating to duty imposed under that Part or to refunds in respect of any such duty.

Transitional cannabis duty system regulations

(2) For the purpose of facilitating the implementation, application, administration or enforcement of the cannabis duty system, the Governor in Council may make regulations adapting any provision of this Act or of the regulations made under this Act to take into account the making of regulations under the Cannabis Act or amendments to those regulations.

Retroactive effect

(3) Despite subsection 304(2), regulations made under subsection (2) may, if they so provide, be retroactive and have effect with respect to any period before they are made.

93 Schedule 7 to the Act is replaced by the Schedule 7 set out in Schedule 1 to this Act.

94 The Act is amended by replacing "excise stamp" with "tobacco excise stamp", with any grammatical changes that the circumstances require, in the following provisions:

(a) subsections 25.1(2) to (5);

(b) sections 25.2 to 25.4; and

R.S., c. E-15

Excise Tax Act

95 The definition excisable goods in subsection 123(1) of the Excise Tax Act is replaced by the following:

excisable goods means beer or malt liquor (within the meaning assigned by section 4 of the Excise Act) and spirits, wine, tobacco products and cannabis products (within the meaning assigned by section 2 of the Excise Act, 2001); (produit soumis à l'accise)

96 The portion of section 4 of Part VI of Schedule V to the Act before paragraph (a) is replaced by the following:

4 A supply of tangible personal property (other than excisable goods) made by way of sale by a public sector body where

97 Section 1 of Part III of Schedule VI to the Act is amended by adding the following after paragraph (a):

(b) cannabis products, as defined in section 2 of the Excise Act, 2001;

98 (1) Section 2 of Part IV of Schedule VI to the French version of the Act is replaced by the following:

2 La fourniture de graines et de semences (autres que les graines viables qui constituent du cannabis au sens du paragraphe 2(1) de la Loi sur le cannabis) à leur état naturel, traitées pour l'ensemencement ou irradiées pour l'entreposage, de foin, de produits d'ensilage ou d'autres produits de fourrage, fournis en quantités plus importantes que celles qui sont habituellement vendues ou offertes pour vente aux consommateurs, et servant habituellement d'aliments pour la consommation humaine ou animale ou à la production de tels aliments, à l'exclusion des graines, des semences et des mélanges de celles-ci emballés, préparés ou vendus pour servir de nourriture aux oiseaux sauvages ou aux animaux domestiques.

(2) Paragraph 2(a) of Part IV of Schedule VI to the English version of the Act is replaced by the following:

(a) grains or seeds (other than viable seeds that are cannabis as defined in subsection 2(1) of the Cannabis Act) in their natural state, treated for seeding purposes or irradiated for storage purposes,

99 Paragraphs 3.1(b) and (c) of Part IV of Schedule VI to the Act are replaced by the following:

(b) in the case of viable grain or seeds, they are included in the definition industrial hemp in section 1 of the Industrial Hemp Regulations made under the Controlled Drugs and Substances Act or they are industrial hemp for the purposes of the Cannabis Act; and

100 Paragraphs 12(b) and (c) of Schedule VII to the Act are replaced by the following:

101 Section 6 of Part I of Schedule X to the Act is replaced by the following:

6 Property (other than advertising matter or excisable goods) that is a casual donation sent by a person in a non-participating province to a person in a participating province, or brought into a particular participating province by a person who is not resident in the participating provinces as a gift to a person in that participating province, where the fair market value of the property does not exceed $60, under such regulations as the Minister of Public Safety and Emergency Preparedness may make for purposes of heading No. 98.16 of Schedule I to the Customs Tariff.

Amendments to Various Regulations

SI/85-181

Postal Imports Remission Order

102 (1) Paragraph (a) of the definition goods in section 2 of the Postal Imports Remission Order is replaced by the following:

(a) alcoholic beverages, cannabis products, cigars, cigarettes and manufactured tobacco;

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

cannabis product has the same meaning as in section 2 of the Excise Act, 2001; (produit du cannabis)

SI/85-182; SI/92-128, s. 2(F)

Courier Imports Remission Order

103 (1) Paragraph (a) of the definition goods in section 2 of the Courier Imports Remission Order is replaced by the following:

(a) alcoholic beverages, cannabis products, cigars, cigarettes and manufactured tobacco;

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

cannabis product has the same meaning as in section 2 of the Excise Act, 2001; (produit du cannabis)

SOR/91-37

Public Service Body Rebate (GST/HST) Regulations

104 Paragraph 4(1)(e) of the Public Service Body Rebate (GST/HST) Regulations is replaced by the following:

(e) excisable goods that are acquired by the particular person for the purpose of making a supply of the excisable goods for consideration that is not included as part of the consideration for a meal supplied together with the excisable goods, except where tax is payable in respect of the supply by the particular person of the excisable goods;

SOR/2003-115

Regulations Respecting Excise Licences and Registrations

105 (1) The portion of subsection 5(1) of the Regulations Respecting Excise Licences and Registrations before paragraph (a) is replaced by the following:

5 (1) For the purposes of paragraph 23(3)(b) of the Act, the amount of security to be provided by an applicant for a spirits licence, a tobacco licence or a cannabis licence is an amount of not less than $5,000 and

(2) Paragraph 5(1)(b) of the Regulations is replaced by the following:

(b) in the case of a tobacco licence or a cannabis licence, be sufficient to ensure payment of the amount of duty referred to in paragraph 160(b) of the Act up to a maximum amount of $5 million.

SOR/2003-203

Regulations Respecting the Possession of Tobacco Products That Are Not Stamped

106 The title of the Regulations Respecting the Possession of Tobacco Products That Are Not Stamped is replaced by the following:

Regulations Respecting the Possession of Tobacco Products or Cannabis Products That Are Not Stamped

107 The Regulations are amended by adding the following after section 1:

1.1 For the purposes of subparagraph 158.11(3)(a)(i) of the Excise Act, 2001, a person may possess a cannabis product that is not stamped if the person has in their possession documentation that provides evidence that the person is transporting the cannabis product on behalf of a cannabis licensee or, in the case of an industrial hemp by-product, an industrial hemp grower.

1.2 For the purposes of subparagraph 158.11(3)(a)(ii) of the Excise Act, 2001, a person may possess a cannabis product that is not stamped if the person has in their possession documentation that provides evidence that

(a) the person is sterilizing the cannabis product on behalf of a cannabis licensee;

(b) the cannabis licensee owns the cannabis product throughout the period during which the person is in possession of it; and

(c) the cannabis product is to be returned to the premises of the cannabis licensee as soon as possible after the sterilization of the cannabis product.

SOR/2003-288

Stamping and Marking of Tobacco Products Regulations

108 The title of the Stamping and Marking of Tobacco Products Regulations is replaced by the following:

Stamping and Marking of Tobacco and Cannabis Products Regulations

109 Section 2 of the Regulations is amended by striking out "and" at the end of paragraph (a), by adding "and" at the end of paragraph (b) and by adding the following after paragraph (b):

(c) a cannabis product is packaged in a prescribed package when it is packaged in the smallest package — including any outer wrapper, package, box or other container — in which it is sold to the consumer.

110 Subsection 4(2) of the Regulations is replaced by the following:

(2) For the purposes of paragraph 25.3(2)(d) of the Act, a prescribed person is a person who transports a tobacco excise stamp on behalf of a person described in paragraph 25.3(2)(a) or (b) of the Act.

(3) For the purposes of paragraph 158.05(2)(c) of the Act, a prescribed person is a person who transports a cannabis excise stamp on behalf of a person described in paragraph 158.05(2)(a) or (b) of the Act.

111 Subparagraphs 4.1(1)(a)(i) and (ii) of the Regulations are replaced by the following:

(i) the unaffixed tobacco excise stamps in the applicant's possession at the time of application, and

(ii) the tobacco excise stamps to be issued in respect of the application; and

112 The portion of section 4.2 of the Regulations before paragraph (a) is replaced by the following:

4.2 For the purposes of the definition stamped in section 2 of the Act and subsections 25.3(1) and 158.05(1) of the Act, the prescribed manner of affixing an excise stamp to a package is by affixing the stamp

SOR/2011-177

Tobacco Products Labelling Regulations (Cigarettes and Little Cigars)

113 The Tobacco Products Labelling Regulations (Cigarettes and Little Cigars) are amended by replacing "excise stamp" with "tobacco excise stamp" in the following provisions:

(a) paragraph 7(a); and

(b) section 11.

Consequential Amendments

R.S., c. C-46

Criminal Code

114 (1) Subparagraph (g)(i) of the definition offence in section 183 of the Criminal Code is replaced by the following:

(i) section 214 (unlawful production, sale, etc., of tobacco, alcohol or cannabis),

(2) Paragraph (g) of the definition offence in section 183 of the Act is amended by adding the following after subparagraph (iii):

(iii.1) section 218.1 (unlawful possession, sale, etc., of unstamped cannabis),

R.S., c. 1 (2nd Supp.)

Customs Act

115 (1) The definition excise stamp in subsection 2(1) of the Customs Act is replaced by the following:

excise stamp has the same meaning as in section 2 of the Excise Act, 2001; (timbre d'accise)

(2) Subsection 2(1) of the Act is amended by adding the following in alphabetical order:

cannabis product has the same meaning as in section 2 of the Excise Act, 2001; (produit du cannabis)

116 Subsection 109.2(2) of the Act is replaced by the following:

Contravention relating to tobacco, cannabis and designated goods

(2) Every person that

(a) removes tobacco products, cannabis products or designated goods or causes tobacco products, cannabis products or designated goods to be removed from a customs office, sufferance warehouse, bonded warehouse or duty free shop in contravention of this Act or the Customs Tariff or the regulations made under those Acts, or

(b) sells or uses tobacco products or designated goods designated as ships' stores in contravention of this Act or the Customs Tariff or the regulations made under those Acts,

is liable to a penalty equal to double the total of the duties that would be payable on like tobacco products, cannabis products or designated goods released in like condition at the rates of duties applicable to like tobacco products, cannabis products or designated goods at the time the penalty is assessed, or to such lesser amount as the Minister may direct.

Application

117 (1) In applying sections 14 and 23 of the Excise Act, 2001 in respect of a cannabis licence that is issued to a person before commencement day, the following rules apply beginning on the day on which the cannabis licence is issued until commencement day:

(a) subsection 14(1.2) of that Act, as enacted by section 71, is to be read as follows:

(1.2) A cannabis licence issued to a person shall not have effect before a licence or permit issued to the person under subsection 62(1) of the Cannabis Act or a licence issued to the person under section 35 of the Access to Cannabis for Medical Purposes Regulations comes into effect.

(b) paragraph 23(2.1)(a.1) of that Act, as enacted by subsection 72(1), is to be read as follows:

(a.1) in the case of a cannabis licence, a licence or permit issued to the person under subsection 62(1) of the Cannabis Act or a licence issued to the person under section 35 of the Access to Cannabis for Medical Purposes Regulations is amended, suspended or revoked; or

(2) Section 158.13 of the Excise Act, 2001, as enacted by section 73, and section 84 only apply to cannabis products that are entered into the duty-paid market on or after commencement day, including cannabis products that are delivered at any time to a purchaser for sale or distribution on or after commencement day.

(3) Sections 158.19 and 158.2 of the Excise Act, 2001, as enacted by section 73, only apply to packaged cannabis products that are delivered to a purchaser on or after commencement day.

(4) Sections 158.21 and 158.22 of the Excise Act, 2001, as enacted by section 73, only apply to cannabis products that are imported into Canada or released (as defined in the Customs Act) on or after commencement day.

(5) Section 158.25 of the Excise Act, 2001, as enacted by section 73, only applies to cannabis products that are taken for use on or after commencement day.

(6) Section 158.26 of the Excise Act, 2001, as enacted by section 73, only applies to cannabis products that, on or after commencement day, cannot be accounted for as being in the possession of a cannabis licensee or in the possession of a person in accordance with subsection 158.11(3) or paragraph 158.11(5)(a) of that Act, as enacted by section 73.

Transitional Provision

118 (1) In this section, transitional period means the period beginning on the first day on which both this Act and the other Act have received royal assent and ending at the end of the day preceding commencement day.

(2) If, at any time during the transitional period, provisions of the Excise Act, 2001, as enacted or amended by this Part, rely on or incorporate provisions or concepts found in provisions of the other Act (other than subsection 204(1) of the other Act) that are not in force at that time, those provisions of the other Act are deemed, despite subsection 226(1) of the other Act, to be in force at that time but only for the purposes of applying the Excise Act, 2001.

R.S., c. F-8; 1995, c. 17, s. 45(1)

Amendment to the Federal-Provincial Fiscal Arrangements Act

119 (1) The definition accord de coordination de la taxation du cannabis in subsection 2(1) of the French version of the Federal-Provincial Fiscal Arrangements Act is replaced by the following:

accord de coordination de la taxation du cannabis Accord ou arrangement conclu par le ministre pour le compte du gouvernement du Canada en vertu de la partie III.2, y compris les modifications à l'accord ou à l'arrangement effectuées en vertu de cette partie. (coordinated cannabis taxation agreement)

(2) Subsection (1) is deemed to have come into force on December 14, 2017.

R.S., c. P-6

Pension Act

120 Subsection 35(1.2) of the Pension Act is replaced by the following:

Veterans Well-being Act

(1.2) Any disability assessments under the Veterans Well-being Act, in respect of a disability award or pain and suffering compensation, shall be taken into account for the purpose of determining whether the extent of disability exceeds 100%.

121 (1) The portion of subsection 72(1) of the Act before subparagraph (a)(i) is replaced by the following:

Amount of allowance

72 (1) In addition to any other allowance, pension or compensation awarded under this Act, a member of the forces shall be awarded an exceptional incapacity allowance at a rate determined by the Minister in accordance with the minimum and maximum rates set out in Schedule III if

(a) the member of the forces is in receipt of

(2) The portion of subparagraph 72(1)(a)(ii) of the Act before clause (A) is replaced by the following:

(ii) a pension in a lesser amount than the amount set out in Class 1 of Schedule I as well as compensation paid under this Act or a disability award or pain and suffering compensation paid under the Veterans Well-being Act, if the aggregate of the following percentages is equal to or greater than 98%:

(3) Subparagraph 72(1)(a)(ii) of the Act is amended by striking out "and" at the end of clause (B) and by adding the following after clause (C):

(D) the extent of the disability in respect of which the pain and suffering compensation is paid;

(4) Paragraph 72(1)(b) of the Act is replaced by the following:

(b) the member of the forces is suffering an exceptional incapacity that is a consequence of or caused in whole or in part by the disability for which the member is receiving a pension or a disability award or pain and suffering compensation under that Act;

(d) the Minister determines that the member of the forces is not entitled to additional pain and suffering compensation under that Act.

(5) Subsections 72(1.1) and (2) of the Act are replaced by the following:

Deeming

(1.1) The Minister's determination under paragraph (1)(d) of whether a member of the forces is entitled to additional pain and suffering compensation is deemed to be a determination made under section 56.6 of the Veterans Well-being Act. If the Minister determines that the member is entitled to additional pain and suffering compensation, the member's application for an exceptional incapacity allowance is deemed to be an application for additional pain and suffering compensation made under that section.

For greater certainty

(1.2) For greater certainty, a member of the forces who is not released from the Canadian Forces is not entitled to additional pain and suffering compensation for the purposes of paragraph (1)(d).

Determination of exceptional incapacity

(2) Without restricting the generality of paragraph (1)(b), in determining whether the incapacity suffered by a member of the forces is exceptional, account shall be taken of the extent to which the disability for which the member is receiving a pension or a disability award or pain and suffering compensation under the Veterans Well-being Act has left the member in a helpless condition or in continuing pain and discomfort, has resulted in loss of enjoyment of life or has shortened the member's life expectancy.

122 The Act is amended by adding the following after section 80:

Waiver of requirement for application

80.1 (1) The Minister may waive the requirement for an application for an award if he or she believes, based on information that has been collected or obtained by him or her in the exercise of the Minister's powers or the performance of the Minister's duties and functions, that a person may be eligible for the award if they were to apply for it.

Notice of intent

(2) If the Minister intends to waive the requirement for an application in respect of a person, the Minister shall notify the person, orally or in writing, of that intention.

Accepting waiver

(3) The person may accept to have the requirement for an application waived by notifying the Minister, orally or in writing, of their decision to accept the waiver and, in that case, the person shall, in any period specified by the Minister, provide him or her with any information or document that he or she requests.

Date of waiver

(4) The requirement for an application is waived on the day on which the Minister receives the person's notice of their decision to accept the waiver of the requirement.

Minister may require application

(5) The Minister may, at any time after he or she notifies the person of his or her intention to waive the requirement for an application and for any reason that he or she considers reasonable in the circumstances, including if the person does not provide the Minister with the information that he or she requested in the period that he or she specifies, require that the person make an application and, in that case, the Minister shall notify the person in writing of that requirement.

Waiver cancelled

(6) A waiver is cancelled on the day on which the Minister notifies the person that they are required to make an application.

Effect of waiver

80.2 (1) If the requirement for an application for an award is waived by the Minister, the application is deemed to have been made on the day on which the requirement is waived.

Effect of cancelling waiver

(2) Despite subsection (1), if the waiver is cancelled after the day on which the Minister receives the person's notice of their decision to accept the waiver, no application is deemed to have been made.

2005, c. 21; 2017, c. 20, s. 270

Veterans Well-being Act

123 (1) The definitions compensation and rehabilitation services in subsection 2(1) of the Veterans Well-being Act are replaced by the following:

compensation means any of the following benefits under this Act, namely, an education and training benefit, an education and training completion bonus, an income replacement benefit, a Canadian Forces income support benefit, a critical injury benefit, a disability award, pain and suffering compensation, additional pain and suffering compensation, a death benefit, a clothing allowance, a detention benefit or a caregiver recognition benefit. (indemnisation)

rehabilitation services means all services related to the medical rehabilitation, psycho-social rehabilitation or vocational rehabilitation of a person. (services de réadaptation)

(2) Subsection 2(1) of the Act is amended by adding the following in alphabetical order:

disability award means a disability award paid under section 45, 47 or 48 of this Act as it read immediately before April 1, 2019. (indemnité d'invalidité)

124 Paragraph 3(3)(c) of the Act is replaced by the following:

125 Section 5.7 of the Act is replaced by the following:

No payment — other services or benefit

5.7 The Minister is not permitted to pay an education and training benefit to a veteran if they are being provided with rehabilitation services under Part 2, or are entitled to a Canadian Forces income support benefit under that Part.

126 (1) The portion of subsection 8(2) of the Act before paragraph (a) is replaced by the following:

Factors Minister may consider

(2) For the purposes of subsections (1) and 18(1), in deciding whether a veteran has a physical or a mental health problem that is creating a barrier to re-establishment in civilian life, and whether that health problem resulted primarily from service in the Canadian Forces, the Minister may consider any factors that the Minister considers relevant, including

(2) Subsection 8(3) of the Act is replaced by the following:

Presumption

(3) For the purposes of subsections (1) and 18(1), a veteran's physical or mental health problem is deemed to have resulted primarily from service in the Canadian Forces if, as a result of the health problem, the veteran suffers from a disability for which a disability award has been granted, pain and suffering compensation has been granted under section 45 or a pension has been granted under the Pension Act.

127 Subsection 9(1) of the Act is replaced by the following:

Eligibility — medical release

9 (1) The Minister may, on application, provide services related to medical rehabilitation or psycho-social rehabilitation to a veteran who has been released on medical grounds in accordance with chapter 15 of the Queen's Regulations and Orders for the Canadian Forces if the physical or mental health problem for which the veteran was released did not result primarily from service in the Canadian Forces.

128 Section 9 of the Act is repealed.

129 (1) Subsection 10(1) of the Act is replaced by the following:

Assessment of needs

10 (1) The Minister shall,

(a) on approving an application made under section 8, assess the veteran's medical rehabilitation, psycho-social rehabilitation and vocational rehabilitation needs; and

(b) on approving an application made under section 9, assess the veteran's medical rehabilitation and psycho-social rehabilitation needs.

(2) Subsection 10(1) of the Act is replaced by the following:

Assessment of needs

10 (1) The Minister shall, on approving an application made under section 8, assess the veteran's medical rehabilitation, psycho-social rehabilitation and vocational rehabilitation needs.

(3) Paragraphs 10(3)(a) and (b) of the Act are replaced by the following:

(a) in the case of a veteran for whom an application made under section 8 was approved, a physical or a mental health problem resulting primarily from service in the Canadian Forces that is creating a barrier to re-establishment in civilian life; or

(b) in the case of a veteran for whom an application made under section 9 was approved, the physical or mental health problem for which the veteran was released.

(4) Subsection 10(3) of the Act is replaced by the following:

Limitation

(3) The only physical or mental health problem that may be addressed in the rehabilitation plan is a physical or a mental health problem resulting primarily from service in the Canadian Forces that is creating a barrier to re-establishment in civilian life.

(5) Subsections 10(4) and (5) of the Act are replaced by the following:

Considerations

(4) In developing a rehabilitation plan, the Minister shall have regard to any prescribed principles and factors and be guided by current research in the field of rehabilitation.

130 Paragraph 11(1)(a) of the Act is replaced by the following:

(a) has approved an application for rehabilitation services made by the veteran under section 8; and

131 Section 18 of the Act and the heading before it are replaced by the following:

Income Replacement Benefit

Veterans

Eligibility

18 (1) The Minister may, on application, pay, in accordance with section 19 or 19.1, an income replacement benefit to a veteran who makes an application under section 8 and who has a physical or a mental health problem resulting primarily from service in the Canadian Forces that is creating a barrier to re-establishment in civilian life.

Veteran's participation

(2) Subject to subsection (9), a veteran who is informed by the Minister of their entitlement to an income replacement benefit is required

(a) to participate in the assessment of their needs under subsection 10(1); and

(b) if the Minister determines, as a result of that assessment, that a rehabilitation plan should be developed for the veteran, to participate in the development and implementation of the plan.

When benefit payable

(3) Subject to subsection (4), the income replacement benefit begins to be payable on the later of

(a) the first day of the month in which the Minister determines that the veteran has provided all the prescribed information, and

(b) the day that is one year before the first day of the month in which the Minister determines that the veteran is entitled to the benefit.

Release from Canadian Forces

(4) If the determination referred to in paragraph (3)(a) is made before the day on which the veteran is released from the Canadian Forces, then the day referred to in that paragraph is the first day of the month in which the veteran is released or, if the veteran is released on the last day of the month, the first day of the month after the month in which the veteran is released.

Determination — diminished earning capacity

(5) If a rehabilitation plan is developed under section 10 for the physical or mental health problem referred to in subsection (1) for a veteran who is entitled to the income replacement benefit, then the Minister shall, in accordance with the regulations, determine whether the veteran has a diminished earning capacity that is due to that health problem, before the earlier of

(a) the day on which the veteran completes the rehabilitation plan, and

(b) the day on which the veteran attains the age of 65 years.

Duration of benefit

(6) Subject to subsections (7) and 20(2) and section 21, the income replacement benefit ceases to be payable on the earlier of

(a) the first day of the month after the month in which the Minister determines, as a result of an assessment of the veteran's needs under subsection 10(1), that a rehabilitation plan should not be developed for the veteran,

(b) the first day of the month after the month in which the veteran completes the rehabilitation plan referred to in subsection (5) or the rehabilitation plan is cancelled,

(d) the first day of the month after the month in which the veteran dies.

Continuation

(7) If the Minister determines under subsection (5) that the veteran has a diminished earning capacity that is due to the physical or mental health problem referred to in subsection (1), the income replacement benefit continues to be payable to the veteran even if the rehabilitation plan has been completed or cancelled or the veteran has attained the age of 65 years, but the benefit ceases to be payable on the earlier of

(a) the first day of the month after the month in which the Minister determines that the veteran no longer has a diminished earning capacity that is due to that health problem, and

(b) the first day of the month after the month in which the veteran dies.

Deeming

(8) If the Minister makes the determination referred to in subsection (5) after the day on which the veteran attains the age of 65 years because the Minister was of the opinion that the reasons for delaying the determination were reasonable in the circumstances, that determination is deemed, for the purposes of subsection (7), to have been made before that day.

Non-application of subsection (2)

(9) Subsection (2) does not apply to a veteran if the Minister determines under subsection (5) that the veteran has a diminished earning capacity that is due to the physical or mental health problem.

Non-application — paragraph (7)(a)

(10) Paragraph (7)(a) does not apply to a veteran who has attained the age of 65 years.

132 (1) The portion of subsection 19(1) of the Act before the formula is replaced by the following:

Amount of benefit — veteran under age 65

19 (1) Subject to the regulations, the monthly amount of the income replacement benefit that is payable under section 18 to a veteran who is under the age of 65 years — or to a veteran who has attained the age of 65 years, for the month in which the veteran attained that age — shall be determined by the formula

(2) Paragraphs 19(2)(a) to (d) of the Act are replaced by the following:

(a) respecting, for the purposes of subsection (1), the determination of the imputed income in respect of a class of veterans, including the periodic adjustment — including in accordance with a career progression factor — of the monthly military salary used in that determination;

(b) providing for a minimum amount of imputed income in respect of a class of veterans and for the periodic adjustment of that minimum amount; and

(c) respecting the determination, for the purpose of the description of B in subsection (1), of an amount payable to a class of veterans for a month.

(3) Section 19 of the Act is amended by adding the following after subsection (2):

Career progression factor

(3) If regulations made under paragraph (2)(a) provide for the periodic adjustment of a veteran's monthly military salary in accordance with a career progression factor, that periodic adjustment may only be applied if the Minister determines under subsection 18(5) that the veteran has a diminished earning capacity, and it shall not be applied after the earlier of

(a) the last day of the prescribed number of years of service of the veteran in the Canadian Forces, and

(b) the day before the day on which the veteran attains the age of 60 years.

133 Sections 20 to 22 of the Act are replaced by the following:

Amount of benefit — veteran 65 years or older

19.1 (1) Subject to the regulations and section 19, the monthly amount of the income replacement benefit that is payable under section 18 to a veteran who has attained the age of 65 years shall be determined by the formula

A – B

where

A is 70% of the income replacement benefit that the veteran would have been entitled to for the month in which they attain the age of 65 years had any amounts that were payable to the veteran from prescribed sources referred to in subsection 19(1) not been taken into account; and

B is an amount that is payable to the veteran for a month from prescribed sources.

Regulations

(2) The Governor in Council may make regulations

(a) providing for the periodic adjustment of the amount determined for A in subsection (1); and

(b) respecting the determination, for the purpose of the description of B in subsection (1), of an amount payable to a class of veterans for a month.

Examination or assessment

20 (1) The Minister may, for the purpose of determining whether a veteran continues to be entitled to an income replacement benefit under section 18, require the veteran to undergo a medical examination or an assessment by a person specified by the Minister.

Non-compliance

(2) If a veteran who is required by the Minister to undergo a medical examination or an assessment fails without reasonable excuse to do so, the Minister may suspend the payment of the income replacement benefit. If the veteran continues to fail to undergo the medical examination or the assessment for a period of 30 days after the day on which payment of the benefit is suspended, the Minister may cancel the benefit.

Suspension or cancellation

21 The Minister may, in the prescribed circumstances, suspend the payment of an income replacement benefit that is payable under section 18 or cancel the benefit.

Survivors and Orphans

Eligibility — service-related death before age 65

22 (1) The Minister may, on application, pay, in accordance with section 23, an income replacement benefit to a member's or a veteran's survivor or orphan if the member or veteran dies before the day on which they attain the age of 65 years as the result of

(a) a service-related injury or disease; or

(b) a non-service-related injury or disease that was aggravated by service.

When benefit payable

(2) The income replacement benefit begins to be payable on the later of

(a) the first day of the month after the month in which the member or veteran dies, and

(b) the day that is one year before the first day of the month in which the Minister determines that the survivor or orphan is entitled to the benefit.

Duration of benefit

(3) Subject to section 26.2, the income replacement benefit ceases to be payable, as the case may be,

(a) to the survivor, on the first day of the month after the month in which the survivor dies; and

(b) to the orphan, on the earlier of

(i) the first day of the month after the month in which the orphan is no longer an orphan, and

(ii) the first day of the month after the month in which the orphan dies.

134 (1) Subsections 23(1) to (3) of the Act are replaced by the following:

Amount of benefit

23 (1) Subject to the regulations, the monthly amount of the income replacement benefit that is payable under section 22 in respect of a member or a veteran is

(a) for the month in which the member or veteran, if alive, would have attained the age of 65 years and any month before that month, 90% of the member's or veteran's imputed income for a month; and

(b) for any month after the month in which the member or veteran, if alive, would have attained the age of 65 years, 70% of the amount determined by the formula

A x B

where

A is 70%; and

B is 90% of the member's or veteran's imputed income for a month.

Division of benefit

(2) If the income replacement benefit is payable to a survivor or an orphan, the following rules apply:

(a) if there is a survivor but no orphans, the survivor is entitled to 100% of the income replacement benefit;

(b) if there is a survivor and one or more orphans,

(i) the survivor is entitled to 50% of the income replacement benefit, and

(ii) the orphans are entitled, as a class, to 50% of the income replacement benefit, divided equally among them;

(c) if there are one or more orphans but no survivor, each of those orphans is entitled to the amount obtained by dividing the income replacement benefit by the number of those orphans.

Reduction — survivor

(3) Subject to the regulations, the monthly amount of the income replacement benefit that is payable to a survivor is to be reduced by an amount that is payable to the survivor for a month — in respect of the member or veteran — from prescribed sources.

(2) Paragraphs 23(4)(a) to (d) of the Act are replaced by the following:

(a) respecting, for the purposes of paragraphs (1)(a) and (b), the determination of the imputed income in respect of a class of members or veterans, including the periodic adjustment — including in accordance with a career progression factor — of the monthly military salary used in that determination;

(b) providing for a minimum amount of imputed income in respect of a class of members or veterans and for the periodic adjustment of that minimum amount;

(c) providing for the periodic adjustment of the amount of the income replacement benefit calculated in accordance with subsection (1); and

(d) respecting the determination, for the purpose of subsection (3), of an amount payable to a class of survivors for a month.

(3) Section 23 of the Act is amended by adding the following after subsection (4):

Career progression factor

(5) If regulations made under paragraph (4)(a) provide for the periodic adjustment of a member's or a veteran's monthly military salary in accordance with a career progression factor, that periodic adjustment shall not be applied after the earlier of

(a) the last day of the prescribed number of years of service of the member or veteran in the Canadian Forces, and

(b) the day before the day the member or veteran, if alive, would have attained the age of 60 years.

135 Sections 24 to 26 of the Act are replaced by the following:

Eligibility — non-service-related death before age 65

24 (1) The Minister may, on application, pay, in accordance with section 25, an income replacement benefit to a veteran's survivor or orphan if the veteran

(a) dies before the day on which they attain the age of 65 years as the result of an injury or a disease other than

(i) a service-related injury or disease, or

(ii) a non-service-related injury or disease that was aggravated by service; and

(b) was entitled to the income replacement benefit at the time of their death.

Lump sum

(2) The benefit is to be paid as a lump sum.

Amount of benefit

25 (1) The amount of the income replacement benefit that is payable under section 24 in respect of a veteran is

(a) 24 times the amount of the income replacement benefit that the veteran would have been entitled to for the month in which they died had any amounts that were payable to the veteran from prescribed sources referred to in subsection 19(1) not been taken into account; or

(b) if the veteran was entitled to the income replacement benefit at the time of their death as a result of section 99, 24 times the amount of the income replacement benefit that the veteran would have been entitled to for the month in which they died had subsections 99(3) to (5) never applied to the veteran and had any amounts that were payable to the veteran from prescribed sources referred to in subsection 19(1) not been taken into account.

Division of benefit

(2) If the income replacement benefit is payable to a survivor or an orphan, the following rules apply:

(a) if there is a survivor but no orphans, the survivor is entitled to 100% of the income replacement benefit;

(b) if there is a survivor and one or more orphans,

(i) the survivor is entitled to 50% of the income replacement benefit, and

(ii) the orphans are entitled, as a class, to 50% of the income replacement benefit, divided equally among them;

(c) if there are one or more orphans but no survivor, each of those orphans is entitled to the amount obtained by dividing the income replacement benefit by the number of those orphans.

Eligibility — veteran's death at age 65 years or older

26 (1) The Minister may, on application, pay, in accordance with section 26.1, an income replacement benefit to a veteran's survivor or orphan if the veteran dies on or after the day on which they attain the age of 65 years and the veteran was entitled to the income replacement benefit at the time of their death.

When benefit payable

(2) The income replacement benefit begins to be payable on the later of

(a) the first day of the month after the month in which the veteran dies, and

(b) the day that is one year before the first day of the month in which the Minister determines that the survivor or orphan is entitled to the benefit.

Duration of benefit

(3) Subject to section 26.2, the income replacement benefit ceases to be payable, as the case may be,

(a) to the survivor, on the first day of the month after the month in which the survivor dies; and

(b) to the orphan, on the earlier of

(i) the first day of the month after the month in which the orphan is no longer an orphan, and

(ii) the first day of the month after the month in which the orphan dies.

Amount of benefit

26.1 (1) Subject to the regulations, the monthly amount of the income replacement benefit that is payable under section 26 in respect of a veteran is

(a) 70% of the income replacement benefit that the veteran would have been entitled to for the month in which they died — or, if the veteran died in the month in which they attained the age of 65 years, for the month after the month in which they died — had any amounts that were payable to the veteran from prescribed sources referred to in subsection 19.1(1) not been taken into account; or

(b) if the veteran was entitled to the income replacement benefit at the time of their death as a result of section 99, 70% of the income replacement benefit that the veteran would have been entitled to for the month in which they died — or, if the veteran died in the month in which they attained the age of 65 years, for the month after the month in which they died — had subsections 99(3) to (5) never applied to the veteran and had any amounts that were payable to the veteran from prescribed sources referred to in subsection 19.1(1) not been taken into account.

Division of benefit

(2) If the income replacement benefit is payable to a survivor or an orphan, the following rules apply:

(a) if there is a survivor but no orphans, the survivor is entitled to 100% of the income replacement benefit;

(b) if there is a survivor and one or more orphans,

(i) the survivor is entitled to 50% of the income replacement benefit, and

(ii) the orphans are entitled, as a class, to 50% of the income replacement benefit, divided equally among them;

(c) if there are one or more orphans but no survivor, each of those orphans is entitled to the amount obtained by dividing the income replacement benefit by the number of those orphans.

Reduction — survivor

Regulations

(4) The Governor in Council may make regulations

(a) providing for the periodic adjustment of the income replacement benefit calculated in accordance with subsection (1); and

(b) respecting the determination, for the purpose of subsection (3), of an amount payable to a class of survivors for a month.

Suspension or cancellation

26.2 The Minister may, in the prescribed circumstances, suspend the payment of an income replacement benefit that is payable under section 22 or 26 or cancel the benefit.

136 The portion of section 27 of the Act before paragraph (b) is replaced by the following:

Eligibility — veterans

27 The Minister may, on application made within the prescribed time, pay a Canadian Forces income support benefit to a veteran who has been in receipt of an income replacement benefit under section 18 — or would, but for their level of income, have been in receipt of it — if

(a) the veteran is no longer entitled to the income replacement benefit;

137 The heading before section 38 and sections 38 to 40.6 of the Act are repealed.

138 (1) Paragraphs 41(a) and (b) of the Act are replaced by the following:

(a) providing for the notification of the Minister, by persons who are entitled to an income replacement benefit or a Canadian Forces income support benefit, of any changes in income or benefits, or in an amount payable for a month from a prescribed source for the purposes of subsection 19(1), 19.1(1), 23(3) or 26.1(3), requiring the provision of statements of estimated income, benefits or amounts payable and providing for the effect of those changes on the calculation of the amount of the compensation payable;

(b) respecting what constitutes a diminished earning capacity;

(b.1) respecting the manner of determining whether a veteran has a diminished earning capacity that is due to a physical or a mental health problem;

(b.2) respecting what constitutes a year of service in the Canadian Forces, for the purposes of subsections 19(3) and 23(5);

(2) Section 41 of the Act is amended by striking out "and" at the end of paragraph (f), by adding "and" at the end of paragraph (e) and by repealing paragraph (g).

139 The heading of Part 3 of the Act is replaced by the following:

Critical Injury, Pain and Suffering, Death and Detention

140 Section 42 of the Act is replaced by the following:

Non-application of this Part

42 This Part, other than sections 44.1, 44.2 and 56.6 to 56.8, does not apply in respect of an injury or a disease, or the aggravation of an injury or a disease, if the injury or disease, or the aggravation, is one for which a pension may be granted under the Pension Act.

141 The heading before section 45 of the Act is replaced by the following:

Pain and Suffering Compensation

142 (1) The portion of subsection 45(1) of the Act before paragraph (a) is replaced by the following:

Eligibility

45 (1) The Minister may, on application, pay pain and suffering compensation to a member or a veteran who establishes that they are suffering from a disability resulting from

(2) Subsection 45(2) of the Act is replaced by the following:

Compensable fraction

(2) Pain and suffering compensation may be paid under paragraph (1)(b) only in respect of that fraction of a disability, measured in fifths, that represents the extent to which the injury or disease was aggravated by service.

143 Subsection 46(2) of the Act is replaced by the following:

Compensable fraction

(2) If a disability results from an injury or a disease that is deemed to be a service-related injury or disease, pain and suffering compensation may be paid under subsection 45(1) only in respect of that fraction of the disability, measured in fifths, that represents the extent to which that injury or disease is a consequence of another injury or disease that is, or is deemed to be, a service-related injury or disease.

144 Sections 47 to 56 of the Act are replaced by the following:

Loss of paired organ or limb

47 (1) The Minister may, on application, pay pain and suffering compensation to a member or a veteran who has been paid a disability award or pain and suffering compensation or to whom pain and suffering compensation is payable on account of the loss of, or the permanent loss of the use of, one of their paired organs or limbs if the member or veteran suffers, either before or after that loss or loss of use, the loss of, the permanent loss of the use of or the impairment of the other paired organ or limb from any cause whatever.

Extent of disability

(2) The member's or veteran's extent of disability in respect of that other paired organ or limb shall be considered to be 50% of the extent of disability at which the member or veteran would have been assessed if the loss of, the permanent loss of the use of or the impairment of that paired organ or limb had occurred in circumstances in which pain and suffering compensation would have been payable under section 45.

Increase in extent of disability

48 (1) If a member or a veteran who has been paid a disability award or pain and suffering compensation or to whom pain and suffering compensation is payable establishes that their extent of disability, for which a disability award or pain and suffering compensation was paid or is payable, has subsequently increased, the Minister may, on application, pay pain and suffering compensation to the member or veteran.

Compensable fraction — aggravated by service

(2) In the case of a non-service related injury or disease that was aggravated by service, pain and suffering compensation may be paid under subsection (1) only in respect of that fraction of the disability that has been determined in accordance with subsection 45(2).

Compensable fraction — consequential injury or disease

(3) In the case of an injury or a disease that is a consequence of another injury or disease, pain and suffering compensation may be paid under subsection (1) only in respect of that fraction of the disability that has been determined in accordance with subsection 46(2).

How extent of disability assessed

49 (1) The assessment of the extent of a disability shall be based on the instructions and a table of disabilities to be made by the Minister for the guidance of persons making those assessments.

Statutory Instruments Act

(2) The instructions and table of disabilities are exempt from the application of sections 3, 5 and 11 of the Statutory Instruments Act.

Amount of pain and suffering compensation

50 (1) Subject to section 56.4, the monthly amount of pain and suffering compensation that is payable under section 45, 47 or 48 to a member or a veteran shall be determined by the formula

A – B

where

A is the amount set out in column 3 of Schedule 3 that corresponds to the extent of disability, as set out in column 2 of that Schedule, that is the total of the member's or veteran's extent of disability for which a disability award has been paid or for which pain and suffering compensation is payable or has been paid as a lump sum; and

B is the amount set out in column 3 of Schedule 3 that corresponds to the extent of disability, as set out in column 2 of that Schedule, that is the total of the member's or veteran's extent of disability for which a disability award has been paid or for which pain and suffering compensation has been paid as a lump sum.

Fraction

(2) For the purpose of determining the extent of disability in subsection (1), if a disability award or pain and suffering compensation was paid or may be paid only in respect of a fraction of a disability, then only that fraction of the disability shall be taken into account.

When pain and suffering compensation payable

51 (1) Pain and suffering compensation begins to be payable under section 45, 47 or 48 on the later of

(a) the first day of the month in which the application for pain and suffering compensation is made, and

(b) the day that is three years before the first day of the month in which the pain and suffering compensation is granted.

Additional payment

(2) Despite subsection (1), if the Minister or, in the case of a review or an appeal under the Veterans Review and Appeal Board Act, the Board is of the opinion that, were it not for delays in securing service or other records or other administrative difficulties beyond the control of the member or veteran, pain and suffering compensation would have been granted earlier, the Minister or the Board, as the case may be, may grant an additional payment to the member or veteran in an amount not exceeding an amount equal to the pain and suffering compensation payable to the member or veteran for two years.

Additional payment deemed to be compensation

(3) The additional payment is deemed to be compensation for the purposes of sections 88 to 90 and 92 and subsection 93(1).

Duration of pain and suffering compensation

52 Subject to section 52.1, pain and suffering compensation ceases to be payable under section 45, 47 or 48 on the earlier of

(a) the first day of the month after the month in which the member or veteran makes an election under section 53, and

(b) the first day of the month after the month in which the member or veteran dies.

Suspension or cancellation

52.1 The Minister may, in the prescribed circumstances, suspend the payment of pain and suffering compensation that is payable under section 45, 47 or 48 or cancel the pain and suffering compensation.

Election — lump sum

53 (1) A member or a veteran to whom pain and suffering compensation is payable under section 45, 47 or 48 may elect, in the prescribed manner, to receive the pain and suffering compensation as a lump sum in lieu of monthly payments.

Amount of lump sum

(2) The amount of the pain and suffering compensation that is payable as a lump sum shall be determined by the formula

A – B

where

A is the amount set out in column 4 of Schedule 3 that corresponds to the extent of disability, as set out in column 2 of that Schedule, that is the total of the member's or veteran's extent of disability for which pain and suffering compensation is payable; and

B is the sum of the amounts obtained — in respect of each pain and suffering compensation that began to be payable to the member or veteran, other than pain and suffering compensation for which the member or veteran previously made an election under this section — by multiplying the amount determined in accordance with paragraph (a) by the number determined in accordance with paragraph (b):

(a) the amount set out in column 3 of Schedule 3 that corresponds to the member's or veteran's extent of disability, as set out in column 2 of that Schedule, for which that pain and suffering compensation was paid;

(b) the number of months for which the member or veteran was paid that pain and suffering compensation.

Election irrevocable

(3) An election made under subsection (1) is irrevocable and applies in respect of the member's or veteran's total extent of disability for which pain and suffering compensation is payable when the election is made.

Death of member or veteran

54 If a member or a veteran to whom pain and suffering compensation is payable under section 45, 47 or 48 dies, the Minister may, on application, pay as a lump sum, in accordance with section 56.1, to a survivor or a person who was, at the time of the member's or veteran's death, a dependent child, any pain and suffering compensation that would have been payable to the member or veteran under section 53 if they had made the election under that section on the day before their death.

Death of member or veteran — application pending

55 (1) If a member or a veteran who made an application for pain and suffering compensation under section 45, 47 or 48 dies before the Minister makes a determination in respect of the application, the Minister may pay as a lump sum, in accordance with section 56.1, to a survivor or a person who was, at the time of the member's or veteran's death, a dependent child, pain and suffering compensation in an amount equal to the amount, set out in column 4 of Schedule 3, that corresponds to the monthly amount of pain and suffering compensation, set out in column 3 of that Schedule, that would have been payable to the member or veteran under section 45, 47 or 48, had they lived, as a result of the application.

Rights of survivor and dependent child

(2) The survivor or dependent child has, in respect of the application referred to in subsection (1), all of the rights that the member or veteran would have had had they lived.

Death of member or veteran — no application made

56 If a member or a veteran dies before they make an application for pain and suffering compensation under section 45, 47 or 48, the Minister may, on application, pay as a lump sum, in accordance with section 56.1, to a survivor or a person who was, at the time of the member's or veteran's death, a dependent child, pain and suffering compensation in an amount equal to the amount, set out in column 4 of Schedule 3, that corresponds to the monthly amount of pain and suffering compensation, set out in column 3 of that Schedule, that would have been payable to the member or veteran under section 45, 47 or 48 if the member or veteran had lived and had made the application.

Division of pain and suffering compensation

56.1 If pain and suffering compensation is payable to a survivor or a person who was, at the time of a member's or veteran's death, a dependent child, the following rules apply:

(a) if there is a survivor but no person who was a dependent child, the survivor is entitled to 100% of the pain and suffering compensation;

(b) if there is a survivor and one or more persons who were dependent children,

(i) the survivor is entitled to 50% of the pain and suffering compensation, and

(ii) the persons who were dependent children are entitled, as a class, to 50% of the pain and suffering compensation, divided equally among them;

(c) if there are one or more persons who were dependent children but no survivor, each of those children is entitled to the amount obtained by dividing the pain and suffering compensation by the number of those children.

Deemed extent of disability

56.2 For the purposes of sections 55 and 56, if a member or a veteran dies as a result of an injury or a disease for which a disability award has been paid or for which pain and suffering compensation has been paid, is payable or would be payable and their death occurs more than 30 days after the day on which the injury occurred or the disease was contracted or the injury or disease was aggravated, the member or veteran is deemed to have been assessed, on the day before their death, as having an extent of disability of 100% in respect of that injury or disease.

Reduction

56.3 If an amount is paid or payable to a person from a prescribed source in respect of a death or disability for which pain and suffering compensation is payable, the Minister may reduce the pain and suffering compensation that is payable to the person by an amount determined in accordance with the regulations.

Maximum extent of disability

56.4 (1) If a member's or a veteran's extent of disability, in respect of the aggregate of all of the member's or veteran's disability assessments and deemed disability assessments under this Act — in relation to the disability award or pain and suffering compensation — and under the Pension Act, exceeds 100%, no pain and suffering compensation is to be paid for any percentage points exceeding 100%.

Compensable fraction

(2) For the purpose of determining the extent of disability, if a disability award or pain and suffering compensation was paid or may be paid only in respect of a fraction of a disability, or if only a fraction of a disability is pensionable under the Pension Act, then only that fraction of the disability shall be taken into account.

No pain and suffering compensation — decision under Pension Act

56.5 (1) No pain and suffering compensation shall be granted in respect of an injury or a disease, or the aggravation of an injury or a disease, if the injury or disease, or the aggravation, has been the subject of an application for a pension under the Pension Act and the Minister, or the Commission as defined in section 79 of that Act, has rendered a decision in respect of the application.

No pain and suffering compensation — inseparable for purpose of assessment

(2) No pain and suffering compensation shall be granted in respect of an injury or a disease, or the aggravation of an injury or a disease, if the Minister determines that the injury or disease, or the aggravation, is inseparable — for the purpose of assessing the extent of disability — from an injury or a disease, or the aggravation of an injury or a disease, for which a pension has been granted under the Pension Act.

Additional Pain and Suffering Compensation

Eligibility

56.6 (1) The Minister may, on application, pay additional pain and suffering compensation to a veteran who suffers from one or more disabilities that are creating a permanent and severe impairment and a barrier to re-establishment in civilian life if the veteran, in respect of each of those disabilities, has been granted a disability award or pain and suffering compensation or a disability pension under the Pension Act.

Non-application of subsection (1)

(2) Subsection (1) does not apply in respect of a disability resulting from an injury or disease, or the aggravation of an injury or disease, that resulted from

(a) service in the Canadian Forces on or before April 1, 1947; or

(b) service in the Korean War, as defined in subsection 3(1) of the Pension Act.

Ineligibility — exceptional incapacity allowance

(3) A veteran who is receiving an exceptional incapacity allowance under the Pension Act is not eligible for additional pain and suffering compensation.

Assessment of extent of impairment

(4) The Minister shall assess the extent of the veteran's permanent and severe impairment.

Amount of additional pain and suffering compensation

(5) The monthly amount of additional pain and suffering compensation that is payable is the amount set out in column 2 of Schedule 4 that corresponds to the extent of the veteran's permanent and severe impairment as set out in Column 1 of that Schedule.

When additional pain and suffering compensation payable

(6) Subject to subsection (8), additional pain and suffering compensation begins to be payable on the later of

(a) the first day of the month in which the application for additional pain and suffering compensation is made,

(b) the day that is one year before the first day of the month in which the veteran is determined to be entitled to the additional pain and suffering compensation, and

(c) the first day of the month in which the veteran is released from the Canadian Forces or, if the veteran is released on the last day of the month, the first day of the month after the month in which the veteran is released.

Reassessment of extent of impairment

(7) If there has been a change in circumstances relating to a veteran to whom additional pain and suffering compensation is payable, the Minister may, on application, reassess the extent of the veteran's permanent and severe impairment. The Minister may, on his or her own initiative, reassess the extent of the veteran's permanent and severe impairment.

When additional pain and suffering compensation payable — reassessment

(8) If, as a result of the reassessment, a determination is made that the extent of the veteran's permanent and severe impairment has changed, the resulting additional pain and suffering compensation begins to be payable,

(a) if the reassessment is conducted on application and the veteran's extent of impairment has worsened, on the later of

(i) the first day of the month in which the application for a reassessment is made, and

(ii) the day that is one year before the first day of the month in which the determination is made;

(b) if the reassessment is conducted on application and the veteran's extent of impairment has lessened, on the first day of the month after the month in which the determination is made; or

(c) if the reassessment is conducted on the Minister's own initiative, on the first day of the month after the month in which the determination is made.

Duration of additional pain and suffering compensation

(9) Subject to section 56.8, additional pain and suffering compensation ceases to be payable on the earlier of

(a) the first day of the month after the month in which the Minister determines that the veteran is no longer entitled to the additional pain and suffering compensation, and

(b) the first day of the month after the month in which the veteran dies.

Examination or assessment

56.7 The Minister may, for the purpose of determining whether a veteran continues to be entitled to additional pain and suffering compensation under section 56.6 or for the purpose of determining whether the extent of the veteran's permanent and severe impairment has changed, require the veteran to undergo a medical examination or an assessment by a person specified by the Minister.

Suspension or cancellation

56.8 The Minister may, in the prescribed circumstances, suspend the payment of additional pain and suffering compensation or cancel the additional pain and suffering compensation.

145 (1) Subsections 60(1) and (2) of the Act are replaced by the following:

Allowance — amputation

60 (1) The Minister may, on application, pay to a member or a veteran who has received a disability award or pain and suffering compensation on account of an amputation of their leg at or above a Symes' amputation a clothing allowance in respect of their amputation that causes wear and tear of clothing.

Allowance — amputation

(2) The Minister may, on application, pay to a member or a veteran who has received a disability award or pain and suffering compensation on account of an amputation of the arm at or above the wrist a clothing allowance in respect of their amputation that causes wear and tear of clothing.

(2) Subsection 60(3) of the English version of the Act is replaced by the following:

Allowance — two amputations

(3) If a member or a veteran has received a disability award or pain and suffering compensation on account of two amputations of a kind described in subsection (1) or (2), the Minister may, on application, in addition to the allowances that may be payable under that subsection, pay a clothing allowance in respect of the second amputation equal to 50% of the allowance payable in respect of that amputation.

(3) Subsections 60(4) and (5) of the Act are replaced by the following:

Allowance — other disabilities

(4) If a member or a veteran has received a disability award or pain and suffering compensation for a disability other than a disability described in subsection (1) or (2) that causes wear and tear of clothing, the Minister may, on application, pay a clothing allowance.

Specially made apparel

(5) If a member or a veteran has received a disability award or pain and suffering compensation for a disability that requires the wearing of specially made apparel, the Minister may, on application, in addition to any other allowance that may be payable under this section, pay a clothing allowance on account of the purchase of the apparel.

146 Section 63 of the Act is replaced by the following:

Governor in Council

63 The Governor in Council may make regulations

(a) respecting the rules of evidence and evidentiary presumptions relating to applications for a critical injury benefit, pain and suffering compensation or a death benefit;

(b) respecting the determination, for the purpose of section 56.3, of an amount by which pain and suffering compensation may be reduced; and

(c) respecting what constitutes a permanent and severe impairment, the manner of determining whether a veteran has a permanent and severe impairment and the extent of the permanent and severe impairment.

147 (1) Paragraph 65.1(1)(a) of the Act is replaced by the following:

(a) the veteran has had an application for a disability award or pain and suffering compensation approved;

(2) Paragraph 65.1(1)(b) of the English version of the Act is replaced by the following:

(b) as a result of the disability for which the application for a disability award or pain and suffering compensation was approved, the veteran requires ongoing care;

148 Subsection 74(1) of the English version of the Act is replaced by the following:

Expenses

74 (1) The Minister may pay to a person who undergoes a medical examination or an assessment at the Minister's request a reasonable amount for their travel and living expenses incurred by reason of the medical examination or the assessment.

149 The portion of section 82 of the Act before paragraph (a) is replaced by the following:

Social Insurance Number

82 The Minister may, for the purpose of determining whether a person is entitled to an income replacement benefit or a Canadian Forces income support benefit under this Act,

150 (1) The portion of subsection 88(4) of the English version of the Act before paragraph (a) is replaced by the following:

Erroneous payments

(4) Despite anything in this Act, the Minister may continue the payment of an education and training benefit, an income replacement benefit, a Canadian Forces income support benefit, pain and suffering compensation, additional pain and suffering compensation, a clothing allowance or a caregiver recognition benefit, in whole or in part, to a person who is not entitled to it, or not entitled to a portion of it, if

(2) Paragraphs 88(4)(c) and (d) of the English version of the Act are replaced by the following:

(c) the cancellation or reduction of the benefit, allowance, pain and suffering compensation or additional pain and suffering compensation would, in the opinion of the Minister, cause undue hardship to the person; and

(d) the benefit, allowance, pain and suffering compensation or additional pain and suffering compensation has been paid to the person for five years or more or, in the case of an education and training benefit, for three years or more.

(3) Subsection 88(4) of the French version of the Act is replaced by the following:

Indemnisation erronée

(4) Malgré les autres dispositions de la présente loi, le ministre peut continuer de verser à la personne, bien que celle-ci n'y ait pas droit, tout ou partie de l'allocation pour études et formation, de la prestation de remplacement du revenu, de l'allocation de soutien du revenu, de l'indemnité pour douleur et souffrance, de l'indemnité supplémentaire pour douleur et souffrance, de l'allocation vestimentaire ou de l'allocation de reconnaissance pour aidant dont le montant résulte d'une erreur, d'un retard ou d'un oubli de la part d'un cadre ou fonctionnaire de l'administration publique fédérale et a fait l'objet d'une remise au motif prévu à l'alinéa (3)d), s'il estime que le versement, fait depuis au moins cinq ans, ou depuis au moins trois ans dans le cas de l'allocation pour études et formation, ne résulte pas d'une déclaration trompeuse ou de la dissimulation de faits importants de la part de cette personne et que son annulation ou sa réduction lui causerait un préjudice abusif.

151 Section 90 of the Act is replaced by the following:

Interest

90 No interest shall be paid in respect of any compensation that is payable under this Act.

152 (1) Section 94 of the Act is amended by adding the following after paragraph (a):

(a.1) respecting what constitutes a barrier to re-establishment in civilian life;

(2) Paragraph 94(c) of the Act is replaced by the following:

(3) Paragraph 94(e) of the Act is replaced by the following:

(e) respecting the provision of any information, declaration or document to the Minister by any person who applies for or is in receipt of career transition services, an education and training benefit, an education and training completion bonus, rehabilitation services, vocational assistance, an income replacement benefit, a Canadian Forces income support benefit, pain and suffering compensation, additional pain and suffering compensation or a clothing allowance under this Act, and authorizing the Minister to suspend delivery of the services or assistance or payment of the benefit, bonus, allowance, pain and suffering compensation or additional pain and suffering compensation until the information, declaration or document is provided;

(4) Paragraphs 94(i.1) and (i.2) of the Act are repealed.

153 Section 94.1 of the Act is replaced by the following:

Retroactive application of regulations

94.1 Regulations made in respect of the caregiver recognition benefit under sections 65.4 and 94 may, if they so provide, be retroactive.

154 The heading of Part 5 of the Act is replaced by the following:

Transitional Provisions

155 The heading before section 95 of the Act is replaced by the following:

Limitation

156 The Act is amended by adding the following after section 95:

Special Duty Areas and Special Duty Operations

157 Sections 98 to 117 of the Act are replaced by the following:

Transitional Provisions Relating to Income Replacement Benefit

Definitions

98 The following definitions apply in this section and in sections 99 to 129.

Consumer Price Index means the annual average all-items Consumer Price Index for Canada (not seasonally adjusted) published by Statistics Canada. (indice des prix à la consommation)

former Act means this Act as it read immediately before April 1, 2019. (ancienne loi)

indexed means adjusted annually on January 1 in accordance with the annual percentage increase to the Consumer Price Index, rounded to the next 0.10%, for the year ending on October 31 of the previous year. (indexé)

new Act means this Act as it reads on April 1, 2019. (nouvelle loi)

Earnings Loss Benefit

Members and Veterans

Veterans' deemed entitlement to income replacement benefit

99 (1) If, before April 1, 2019, the Minister determined, as a result of an assessment of a veteran's needs under subsection 10(1) of the former Act, that a rehabilitation plan or a vocational assistance plan should be developed for the veteran in respect of a physical or a mental health problem and if, as a result of the Minister's determination, an earnings loss benefit was payable to the veteran on March 31, 2019 under section 18 of the former Act, then the veteran is deemed, on April 1, 2019, to be entitled to an income replacement benefit under section 18 of the new Act in respect of that health problem and the following rules apply in respect of the veteran:

(a) for the purposes of subsection 18(2) of the new Act, the veteran is deemed, on April 1, 2019, to be informed of their entitlement to the income replacement benefit;

(b) despite subsection 18(3) of the new Act, the benefit begins to be payable to the veteran on April 1, 2019;

(c) the physical or mental health problem in respect of which the veteran is deemed to be entitled to the benefit is deemed to be the physical or mental health problem referred to in subsection 18(5) or (7) of the new Act;

(d) if, on a day before April 1, 2019, the Minister determined that the veteran has a diminished earning capacity that is due to the physical or mental health problem in respect of which the veteran is deemed to be entitled to the benefit, the Minister is deemed to have made that determination, on that day, under subsection 18(5) of the new Act;

(e) if, on March 31, 2019, the veteran was entitled to continue to receive the earnings loss benefit under subsection 18(4) of the former Act, the veteran is deemed, on April 1, 2019, to be entitled to continue to receive the income replacement benefit under subsection 18(7) of the new Act; and

(f) the monthly amount of the income replacement benefit that is payable to the veteran under section 18 of the new Act is to be determined under subsection 19(1) or 19.1(1) of that Act, subject to subsections (2) to (5).

Limitation — career progression factor

(2) If the physical or mental health problem in respect of which the veteran is deemed to be entitled to the income replacement benefit under subsection (1) did not result primarily from service in the Canadian Forces and an increase to the career impact allowance was not payable to the veteran, under subsection 38(3) of the former Act, on March 31, 2019, then the monthly amount of the income replacement benefit that is payable to the veteran under section 18 of the new Act is determined under subsection 19(1) of that Act without any periodic adjustment in accordance with a career progression factor.

Protected amount — veteran under age 65

(3) If, in determining the amount of the income replacement benefit that is payable to the veteran for a given month, the amount determined for A in subsection 19(1) of the new Act is less than the sum of the following amounts, indexed until the time the benefit is payable, then the amount determined for A is to be replaced by that sum:

(a) the amount determined for A in subsection 19(1) of the former Act that was used to calculate the earnings loss benefit payable to the veteran under section 18 of that Act for the month of March 2019, and

(b) if an increase to the career impact allowance was payable to the veteran, under subsection 38(3) of the former Act, on March 31, 2019, the amount of the increase that the veteran received for the month of March 2019 or, if the increase was payable only for a portion of that month, the amount of the increase that the veteran would have received under that subsection for that month if the increase had been payable for the whole month.

Protected amount — veteran 65 years or older

(4) If, in determining the amount of the income replacement benefit that is payable to the veteran for a given month, the amount determined for A in subsection 19.1(1) of the new Act, indexed until the time the benefit is payable, is less than 70% of the sum of the following amounts, indexed until the time the benefit is payable, then the amount determined for A is to be replaced by 70% of the sum of the following amounts, indexed until the time the benefit is payable:

Minimum amount of income replacement benefit

(5) Despite subsections (3) and (4), if an increase to the career impact allowance was payable to the veteran, under subsection 38(3) of the former Act, on March 31, 2019, then the monthly amount of the income replacement benefit that is payable to the veteran under section 18 of the new Act is not to be less than,

(a) if the increase was payable for the whole month of March 2019, the amount of the increase that the veteran received for that month, indexed until the time the benefit is payable; or

(b) if the increase was payable only for a portion of that month, the amount of the increase that the veteran would have received under subsection 38(3) of the former Act for that month if the increase had been payable for the whole month, indexed until the time the benefit is payable.

Amount paid

(6) If an increase to the career impact allowance was payable to a veteran referred to in subsection (1), under subsection 38(3) of the former Act, on March 31, 2019, then the Minister shall pay to the veteran, for every month for which the income replacement benefit is not payable to the veteran and that is included in the period beginning with the month of April 2019 and ending with the month in which the veteran dies, an amount equal to,

(a) if the increase was payable for the whole month of March 2019, the amount of the increase that the veteran received for that month, indexed until the time the amount is payable under this subsection; or

Non-application of subsection (6)

(7) Subsection (6) does not apply if the Minister determines that the veteran's eligibility for an amount that is payable under that subsection is based on a misrepresentation or the concealment of a material fact. The determination is deemed to be made under Part 2.

Amount deemed to be compensation

(8) An amount paid or payable under subsection (6) is deemed to be compensation for the purposes of sections 88 to 90 and subsection 93(1).

Application of subsection 88(4)

(9) Subsection 88(4) applies to an amount paid under subsection (6).

Pending applications — earnings loss benefit and rehabilitation services

100 If, before April 1, 2019, a veteran made an application — in respect of a physical or a mental health problem — for an earnings loss benefit under subsection 18(1) of the former Act and for rehabilitation services or vocational assistance under section 8 or 9 of that Act but the Minister did not make a determination in respect of either of those applications before that date, then the veteran is deemed to have made an application for an income replacement benefit under subsection 18(1) of the new Act on that date.

Pending applications — earnings loss benefit

101 (1) If, before April 1, 2019, the Minister approved an application for rehabilitation services or vocational assistance made by a veteran under section 8 or 9 of the former Act in respect of a physical or a mental health problem but the Minister did not make a determination before that date in respect of an application for an earnings loss benefit made by the veteran under subsection 18(1) of the former Act in respect of that health problem, then the Minister shall make the determination in respect of the application for the earnings loss benefit under that subsection.

Approved applications — payment of benefit

(2) If the Minister approves the application, the Minister shall pay to the veteran, under section 18 of the former Act, the earnings loss benefit that they are entitled to, but only for the period beginning on the day on which the benefit begins to be payable under subsection 18(2) of that Act and ending on March 31, 2019.

Review

102 (1) If, before April 1, 2019, the Minister made a determination to deny an application for an earnings loss benefit made by a veteran under subsection 18(1) of the former Act but, as a result of a review of the determination under section 83, the Minister makes a final determination, on or after April 1, 2019, to approve the application for the benefit in respect of a physical or a mental health problem, then the veteran is deemed, on the day of the final determination, to be entitled to an income replacement benefit under section 18 of the new Act in respect of that health problem and the following rules apply in respect of the veteran:

(a) for the purposes of subsection 18(2) of the new Act, the veteran is deemed, on the day of the final determination, to be informed of their entitlement to the income replacement benefit;

(b) despite subsection 18(3) of the new Act, the benefit begins to be payable to the veteran on the first day of the month in which the final determination is made;

(d) the monthly amount of the income replacement benefit that is payable to the veteran under section 18 of the new Act is to be determined under subsection 19(1) or 19.1(1) of that Act, subject to subsection (2).

Limitation — career progression factor

Non-application of subsection (1)

(3) Subsection (1) does not apply to a veteran if the final determination referred to in that subsection is made after the day on which the veteran attains the age of 65 years.

Review — diminished earning capacity

103 If, on a given day before April 1, 2019, the Minister made a determination that a veteran did not have a diminished earning capacity that was due to a physical or a mental health problem in respect of which the veteran was entitled to an earnings loss benefit under section 18 of the former Act but, as a result of a review of the determination under section 83, the Minister makes a final determination, on or after April 1, 2019, that the veteran has a diminished earning capacity that is due to that problem, then the following rules apply in respect of the veteran:

(a) the Minister is deemed to have made that final determination on that given day;

(b) if, before April 1, 2019, the veteran was no longer entitled to the earnings loss benefit in respect of that problem, then

(i) the veteran is deemed, on the day on which the veteran was no longer entitled to the benefit, to be entitled to continue to receive the earnings loss benefit under subsection 18(4) of the former Act,

(ii) the Minister shall pay to the veteran, under section 18 of the former Act, the earnings loss benefit that they are entitled to, but only for the period beginning on the day referred to in subparagraph (i) and ending on the earlier of March 31, 2019 and the day on which the veteran attains the age of 65 years, and

(iii) if the veteran attained the age of 65 years in the period beginning on the day referred to in subparagraph (i) and ending on March 30, 2019, the veteran is deemed to have made an application for a retirement income security benefit under subsection 40.1(1) of the former Act on the day on which they attained the age of 65 years; and

(c) if a career impact allowance was payable to the veteran under subsection 38(1) of the former Act on March 31, 2019 and the Minister, before April 1, 2019, made a determination to deny the veteran's application for an increase to the career impact allowance made under subsection 38(3) of this Act as it read at any time before that date and if the Minister's determination is not the subject of a review under section 83 on March 31, 2019 and the veteran did not, before April 1, 2019, make a new application for an increase to the career impact allowance under that subsection 38(3), then the veteran is deemed to have made an application for an increase to the career impact allowance under subsection 38(3) of the former Act on March 31, 2019.

Members — determination deemed not to have been made

104 If, before April 1, 2019, the Minister made a determination in respect of an application for an earnings loss benefit made by a member under subsection 18(1) of the former Act and the member was not released from the Canadian Forces before March 31, 2019, then the application and the determination are deemed not to have been made.

Members — pending applications

105 If, before April 1, 2019, a member made an application for an earnings loss benefit under subsection 18(1) of the former Act but the Minister did not make a determination in respect of the application before that date and the member was not released from the Canadian Forces before March 31, 2019, then the application is deemed not to have been made.

Survivors and Orphans

Survivors' and orphans' deemed entitlement to income replacement benefit

106 (1) A survivor or an orphan to whom an earnings loss benefit was payable on March 31, 2019 under section 22 of the former Act is deemed, on April 1, 2019, to be entitled to an income replacement benefit under section 22 of the new Act and the following rules apply in respect of the survivor or orphan:

(a) despite subsection 22(2) of the new Act, the income replacement benefit begins to be payable to the survivor or orphan on April 1, 2019; and

(b) the monthly amount of the income replacement benefit that is payable to the survivor or orphan under section 22 of the new Act is determined under section 23 of that Act, subject to subsections (2) to (7).

Survivors — protected amount for month referred to in paragraph 23(1)(a)

(2) If the amount of the income replacement benefit that is payable to a survivor under section 22 of the new Act for a month referred to in paragraph 23(1)(a) of that Act and that is determined under section 23 of that Act — not taking into account any reduction under subsection 23(3) of that Act — is less than the amount of the earnings loss benefit that was payable to the survivor under section 22 of the former Act for the month of March 2019 and that was determined under section 23 of that Act — not taking into account any reduction under subsection 23(3) of that Act — then the former amount is to be replaced by the latter amount.

Survivors — protected amount for month referred to in paragraph 23(1)(b)

(3) If the amount of the income replacement benefit that is payable to a survivor under section 22 of the new Act for a month referred to in paragraph 23(1)(b) of that Act and that is determined under section 23 of that Act — not taking into account any reduction under subsection 23(3) of that Act — is less than the amount determined by the following formula, then the former amount is to be replaced by the latter amount:

A x B

where

A is 70%; and

B is 70% of the amount of the earnings loss benefit that was payable to the survivor under section 22 of the former Act for the month of March 2019 and that was determined under section 23 of that Act, not taking into account any reduction under subsection 23(3) of that Act.

Non-application of subsections (2) and (3)

(4) Subsections (2) and (3) cease to apply to a survivor on the first day of the month after the month in which the facts that were used to determine the percentage of the income replacement benefit payable to them in accordance with subsection 23(2) of the new Act are different from those used to determine the percentage of the earnings loss benefit that was payable to them in accordance with subsection 23(2) of the former Act for the month of March 2019.

Protected amount — orphans

(5) If the amount of the income replacement benefit that is payable to an orphan under section 22 of the new Act for a month referred to in paragraph 23(1)(a) of that Act and that is determined under section 23 of that Act is less than the amount of the earnings loss benefit that was payable to the orphan under section 22 of the former Act for the month of March 2019 and that was determined under section 23 of that Act, then the former amount is to be replaced by the latter amount.

Non-application of subsection (5)

(6) Subsection (5) ceases to apply to an orphan on the first day of the month after the month in which the facts that were used to determine the percentage of the income replacement benefit payable to them in accordance with subsection 23(2) of the new Act are different from those used to determine the percentage of the earnings loss benefit that was payable to them in accordance with subsection 23(2) of the former Act for the month of March 2019.

Indexation

(7) For the purposes of subsections (2) and (5), the amount of the earnings loss benefit referred to in those subsections, and for the purposes of subsection (3), the amount determined by the formula set out in that subsection, is to be indexed until the time the income replacement benefit is payable.

Pending applications

107 (1) If, before April 1, 2019, a survivor or an orphan made an application for an earnings loss benefit under subsection 22(1) of the former Act but the Minister did not make a determination in respect of the application before that date, then the Minister shall make the determination in respect of the application under that subsection. If the determination is made after March 31, 2020, it is deemed to have been made on that date.

Approved applications — payment of benefit

(2) If the Minister approves the application, the Minister shall pay to the survivor or orphan, under section 22 of the former Act, the earnings loss benefit that they are entitled to, but only for the period beginning on the day on which the benefit begins to be payable under subsection 22(2) of that Act and ending on March 31, 2019.

Deemed application for retirement income security benefit

(3) If the earnings loss benefit that is paid to a survivor referred to in subsection (2) ceases to be payable before March 31, 2019, the survivor is deemed to have made an application for a retirement income security benefit under subsection 40.4(1) of the former Act on the day on which the member or veteran, if alive, would have attained the age of 65 years.

Review

108 (1) If, before April 1, 2019, the Minister made a determination to deny an application for an earnings loss benefit made by a survivor or an orphan under subsection 22(1) of the former Act but, as a result of a review of the determination under section 83, the Minister makes a final determination, on or after April 1, 2019, to approve the application for the benefit, then,

(a) if the final determination is made after March 31, 2020, it is deemed to have been made on that date; and

(b) the Minister shall pay to the survivor or orphan, under section 22 of the former Act, the earnings loss benefit that they are entitled to, but only for the period beginning on the day on which the benefit begins to be payable under subsection 22(2) of that Act and ending on March 31, 2019.

Deemed application for retirement income security benefit

(2) If the earnings loss benefit that is paid to a survivor referred to in paragraph (1)(b) ceases to be payable before March 31, 2019, the survivor is deemed to have made an application for a retirement income security benefit under subsection 40.4(1) of the former Act on the day on which the member or veteran, if alive, would have attained the age of 65 years.

Career Impact Allowance

Amount paid — veterans who received increase

109 (1) If an increase to the career impact allowance was payable to a veteran, under subsection 38(3) of the former Act, on March 31, 2019 but neither an earnings loss benefit under section 18 of the former Act nor a retirement income security benefit under section 40.1 or 40.2 of that Act was payable to the veteran on March 31, 2019, then the Minister shall pay to the veteran, for every month for which the income replacement benefit is not payable to the veteran under section 18 of the new Act and that is included in the period beginning with the month of April 2019 and ending with the month in which the veteran dies, an amount equal to,

Non-application of subsection (1)

(2) Subsection (1) does not apply if the Minister determines that the veteran's eligibility for an amount that is payable under that subsection is based on a misrepresentation or the concealment of a material fact. The determination is deemed to be made under Part 2.

Minimum amount of income replacement benefit

(3) If a veteran received an amount under subsection (1) for a given month and if, for any month after that month, the income replacement benefit is payable to the veteran under section 18 of the new Act, then the monthly amount of the income replacement benefit that is payable to the veteran is not, despite subsections 19(1) and 19.1(1) of the new Act, to be less than,

(a) if the increase to the career impact allowance that the veteran received under subsection 38(3) of the former Act for the month of March 2019 was payable for the whole month, the amount of the increase that the veteran received for that month, indexed until the time the benefit is payable; or

Amount deemed to be compensation

(4) An amount paid or payable under subsection (1) is deemed to be compensation for the purposes of sections 88 to 90 and subsection 93(1).

Application of subsection 88(4)

(5) Subsection 88(4) applies to an amount paid under subsection (1).

Pending applications

110 (1) If, before April 1, 2019, a veteran made an application for a career impact allowance under subsection 38(1) of this Act as it read at any time before April 1, 2019 but the Minister did not make a determination in respect of the application before that date, then the Minister shall make the determination in respect of the application under subsection 38(1) of the former Act. If the determination is made after March 31, 2020, it is deemed to have been made on that date.

Approved applications — payment of allowance

(2) If the Minister approves the application, the Minister shall

(a) determine, under subsection 38(2) of the former Act, the amount of the career impact allowance that is payable to the veteran in a year; and

(b) pay to the veteran, under section 38 of the former Act, the career impact allowance that they are entitled to, but only for the period beginning on the day on which the allowance begins to be payable under section 39 of that Act and ending on March 31, 2019.

Pending applications for increase

(3) If, before April 1, 2019, a veteran made an application for an increase to the career impact allowance under subsection 38(3) of this Act as it read at any time before April 1, 2019 but the Minister did not make a determination in respect of the application before that date, then the Minister shall make the determination in respect of the application under subsection 38(3) of the former Act. If the determination is made after March 31, 2020, it is deemed to have been made on that date.

Approved applications — payment of increase

(4) If the Minister approves the application, the Minister shall increase the career impact allowance that is payable to the veteran under section 38 of the former Act by the amount set out in item 2.1, column 2, of Schedule 2 to the former Act, but only for the period beginning on the day on which the increase begins to be payable under section 39 of that Act and ending on March 31, 2019.

Review respecting applications for allowance

111 (1) If, before April 1, 2019, the Minister made a determination to deny an application for a career impact allowance made by a veteran under subsection 38(1) of this Act as it read at any time before that date but, as a result of a review of the determination under section 83, the Minister makes a final determination, on or after April 1, 2019, to approve the application for the allowance, then,

(a) if the final determination is made after March 31, 2020, it is deemed to have been made on that date;

(b) the Minister shall determine, under subsection 38(2) of the former Act, the amount of the career impact allowance that is payable to the veteran in a year; and

(c) the Minister shall pay to the veteran under section 38 of the former Act the career impact allowance that they are entitled to, but only for the period beginning on the day on which the allowance begins to be payable under section 39 of that Act and ending on March 31, 2019.

Review respecting applications for increase

(2) If, before April 1, 2019, the Minister made a determination to deny an application for an increase to the career impact allowance made by a veteran under subsection 38(3) of this Act as it read at any time before that date but, as a result of a review of the determination under section 83, the Minister makes a final determination, on or after April 1, 2019, to approve the application for the increase, then,

(a) if the final determination is made after March 31, 2020, it is deemed to have been made on that date; and

(b) the Minister shall increase the career impact allowance that is payable to the veteran under section 38 of the former Act by the amount set out in item 2.1, column 2, of Schedule 2 to that Act, but only for the period beginning on the day on which the increase begins to be payable under section 39 of that Act and ending on March 31, 2019.

Review respecting amount of allowance

112 If, after approving an application made by a veteran for a career impact allowance under subsection 38(1) of this Act as it read at any time before April 1, 2019, the Minister determined, under subsection 38(2) of this Act as it read at any time before April 1, 2019, the amount of the career impact allowance that may be paid to the veteran in a year but, as a result of a review of the determination under section 83, the Minister makes a final determination, on or after April 1, 2019, to increase the amount of the allowance that may be paid, then,

(a) if the final determination is made after March 31, 2020, it is deemed to have been made on that date; and

(b) the Minister shall increase the career impact allowance that may be paid to the veteran under section 38 of the former Act, by an amount that is the difference between the amount of the allowance set out in the final determination and the amount of the allowance that was initially determined, but only for the period beginning on the latest of the following days and ending on March 31, 2019:

(i) the day on which the application for the allowance was made under that subsection 38(1),

(ii) the day that is one year before the day on which the final determination is made, and

(iii) the day after the day on which the veteran was released from the Canadian Forces.

Members — determination under subsection 38(1) of former Act

113 (1) If, before April 1, 2019, the Minister made a determination in respect of an application for a career impact allowance made by a member under subsection 38(1) of this Act as it read at any time before April 1, 2019 and the member was not released from the Canadian Forces before March 31, 2019, then

(a) if the determination was to approve the application,

(i) the application and the Minister's determination are deemed not to have been made, and

(ii) the member is deemed to have made an application for additional pain and suffering compensation under subsection 56.6(1) of the new Act on April 1, 2019; and

(b) if the determination was to deny the application, the application and the Minister's determination are deemed not to have been made.

Members — determination under subsection 38(3) of former Act

(2) If, before April 1, 2019, the Minister made a determination in respect of an application for an increase to the career impact allowance made by a member under subsection 38(3) of this Act as it read at any time before April 1, 2019 and the member was not released from the Canadian Forces before March 31, 2019, then the application and the Minister's determination are deemed not to have been made.

Members — pending applications for allowance

114 (1) If, before April 1, 2019, a member made an application for a career impact allowance under subsection 38(1) of this Act as it read at any time before April 1, 2019 but the Minister did not make a determination in respect of the application before that date and the member was not released from the Canadian Forces before March 31, 2019, then the application is deemed not to have been made and the member is deemed to have made an application for additional pain and suffering compensation under subsection 56.6(1) of the new Act on April 1, 2019.

Members — pending applications for increase

(2) If, before April 1, 2019, a member made an application for an increase to the career impact allowance under subsection 38(3) of this Act as it read at any time before April 1, 2019 but the Minister did not make a determination in respect of the application before that date and the member was not released from the Canadian Forces before March 31, 2019, then the application is deemed not to have been made.

Retirement Income Security Benefit

Veterans

Veterans' deemed entitlement to income replacement benefit

115 (1) A veteran to whom a retirement income security benefit was payable on March 31, 2019 under section 40.1 or 40.2 of the former Act is deemed, on April 1, 2019, to be entitled to an income replacement benefit under section 18 of the new Act and the following rules apply in respect of the veteran:

(a) despite subsection 18(3) of the new Act, the income replacement benefit begins to be payable to the veteran on April 1, 2019;

(b) the veteran is deemed, on April 1, 2019, to be entitled to continue to receive the income replacement benefit under subsection 18(7) of the new Act; and

(c) the monthly amount of the income replacement benefit that is payable to the veteran under section 18 of the new Act is to be determined under subsection 19.1(1) of that Act, subject to subsections (2) to (4).

Amount determined for A in subsection 19.1(1)

(2) The amount determined for A in subsection 19.1(1) of the new Act is 70% of the income replacement benefit that the veteran would have been entitled to for the month of March 2019 if the benefit had been payable to the veteran for that month, if the veteran had attained the age of 65 years in that month and if any amounts that were payable to the veteran from prescribed sources referred to in subsection 19(1) had not been taken into account.

Protected amount

(3) If, in determining the amount of the income replacement benefit that is payable to the veteran for a given month, the amount determined for A in subsection 19.1(1) of the new Act, indexed until the time the benefit is payable, is less than the sum of the following amounts, indexed until the time the benefit is payable, then the amount determined for A is to be replaced by that sum:

(a) the amount determined for A in subsection 40.1(4) or 40.2(4) of the former Act, as the case may be, that was used to calculate the retirement income security benefit payable to the veteran under subsection 40.1(1) or 40.2(1) of that Act, as the case may be, for the month of March 2019, and

(b) if an increase to the career impact allowance was payable to the veteran, under subsection 38(3) of the former Act, on March 31, 2019, 70% of the amount of the increase that the veteran received for the month of March 2019 or, if the increase was payable only for a portion of that month, 70% of the amount of the increase that the veteran would have received under that subsection for that month if the increase had been payable for the whole month.

Minimum amount of benefit

(4) Despite subsection (2), if an increase to the career impact allowance was payable to the veteran, under subsection 38(3) of the former Act, on March 31, 2019, then the monthly amount of the income replacement benefit that is payable to the veteran under section 18 of the new Act is not to be less than,

(a) if the increase was payable for the whole month of March 2019, the amount of the increase that the veteran received for that month, indexed until the time the benefit is payable; or

Amount paid

(5) If an increase to the career impact allowance was payable to a veteran referred to in subsection (1), under subsection 38(3) of the former Act, on March 31, 2019, then the Minister shall pay to the veteran, for every month for which the income replacement benefit is not payable to the veteran and that is included in the period beginning with the month of April 2019 and ending with the month in which the veteran dies, an amount equal to,

Non-application of subsection (5)

(6) Subsection (5) does not apply if the Minister determines that the veteran's eligibility for an amount that is payable under that subsection is based on a misrepresentation or the concealment of a material fact. The determination is deemed to be made under Part 2.

Amount deemed to be compensation

(7) An amount paid or payable under subsection (5) is deemed to be compensation for the purposes of sections 88 to 90 and subsection 93(1).

Application of subsection 88(4)

(8) Subsection 88(4) applies to an amount paid under subsection (5).

Pending applications — subsection 40.1(1) of former Act

116 (1) If, before April 1, 2019, a veteran made an application for a retirement income security benefit under subsection 40.1(1) of the former Act but the Minister did not make a determination in respect of the application before that date, then the Minister shall make the determination in respect of the application under that subsection. If the determination is made after March 31, 2020, it is deemed to have been made on that date.

Approved applications — payment of benefit

(2) If the Minister approves the application, the Minister shall pay to the veteran under section 40.1 of the former Act the retirement income security benefit that they are entitled to, but only for the period beginning on the day on which the benefit begins to be payable under subsection 40.1(2) of that Act and ending on March 31, 2019.

Pending applications — subsection 40.2(1) of former Act

117 (1) If, before April 1, 2019, a veteran made an application for a retirement income security benefit under subsection 40.2(1) of the former Act but the Minister did not make a determination in respect of the application before that date, then the Minister shall make the determination in respect of the application under that subsection. If the determination is made after March 31, 2020, it is deemed to have been made on that date.

Approved applications — payment of benefit

(2) If the Minister approves the application, the Minister shall pay to the veteran, under section 40.2 of the former Act, the retirement income security benefit that they are entitled to, but only for the period beginning on the day on which the benefit begins to be payable under subsection 40.2(2) of that Act and ending on March 31, 2019.

Survivors

Survivors' deemed entitlement to income replacement benefit (section 40.3 of former Act)

118 (1) A survivor to whom a retirement income security benefit was payable on March 31, 2019 under section 40.3 of the former Act is deemed, on April 1, 2019, to be entitled to an income replacement benefit under section 26 of the new Act and the following rules apply in respect of the survivor:

(a) despite subsection 26(2) of the new Act, the income replacement benefit begins to be payable to the survivor on April 1, 2019;

(b) the monthly amount of the income replacement benefit that is payable to the survivor under section 26 of the new Act is determined under section 26.1 of that Act, subject to subsections (2) and (3); and

Amount determined in accordance with paragraph 26.1(1)(a)

(2) The monthly amount of the income replacement benefit that is payable under section 26 of the new Act and that is determined under paragraph 26.1(1)(a) of that Act is to be determined by the formula

A x B

where

A is 70%; and

B is 70% of the income replacement benefit that the veteran would have been entitled to for the month of March 2019 if the benefit had been payable to the veteran for that month, if the veteran had attained the age of 65 years in that month and if any amounts that were payable to the veteran from prescribed sources referred to in subsection 19(1) had not been taken into account.

Protected amount

(3) If the amount of the income replacement benefit that is payable to a survivor under section 26 of the new Act for a given month and that is determined under section 26.1 of that Act — not taking into account any reduction under subsection 26.1(3) of that Act — is less than the amount determined for A in subsection 40.3(4) of the former Act that was used to calculate the retirement income security benefit that was payable to the survivor under section 40.3 of that Act for the month of March 2019, then the former amount is to be replaced by the latter amount.

Indexation

(4) For the purposes of subsection (3), the amount of the income replacement benefit referred to in that subsection and the amount determined for A referred to in that subsection are to be indexed until the time the income replacement benefit is payable.

Survivors' deemed entitlement to income replacement benefit (section 40.4 of former Act)

119 (1) A survivor to whom a retirement income security benefit was payable on March 31, 2019 under section 40.4 of the former Act is deemed, on April 1, 2019, to be entitled to an income replacement benefit under section 22 of the new Act and the following rules apply in respect of the survivor:

(a) despite subsection 22(2) of the new Act, the income replacement benefit begins to be payable to the survivor on April 1, 2019;

(b) the monthly amount of the income replacement benefit that is payable to the survivor under section 22 of the new Act is determined under section 23 of that Act, subject to subsection (2); and

Protected amount

(2) If the amount of the income replacement benefit that is payable to a survivor under section 22 of the new Act for a month referred to in paragraph 23(1)(b) of that Act and that is determined under section 23 of that Act — not taking into account any reduction under subsection 23(3) of that Act — is less than the amount that is one half of the amount determined for A in subsection 40.4(4) of the former Act that was used to calculate the retirement income security benefit that was payable to the survivor under section 40.4 of that Act for the month of March 2019, then the former amount is to be replaced by the latter amount.

Indexation

(3) For the purposes of subsection (2), the amount, referred to in that subsection, that is one half of the amount determined for A is to be indexed until the time the income replacement benefit is payable.

Pending applications — subsection 40.3(1) of former Act

120 (1) Subject to subsection (3), if, before April 1, 2019, a survivor made an application for a retirement income security benefit under subsection 40.3(1) of the former Act but the Minister did not make a determination in respect of the application before that date, then the Minister shall make the determination in respect of the application under that subsection. If the determination is made after March 31, 2020, it is deemed to have been made on that date.

Approved applications — payment of benefit

(2) If the Minister approves the application, the Minister shall pay to the survivor, under section 40.3 of the former Act, the retirement income security benefit that they are entitled to, but only for the period beginning on the day on which the benefit begins to be payable under subsection 40.3(2) of that Act and ending on March 31, 2019.

Veteran died in March 2019

(3) If the veteran in respect of whom a survivor made an application referred to in subsection (1) died in the month of March 2019, the survivor is deemed not to have made that application.

Pending applications — subsection 40.4(1) of former Act

121 (1) If, before April 1, 2019, a survivor made an application for a retirement income security benefit under subsection 40.4(1) of the former Act but the Minister did not make a determination in respect of the application before that date, then the Minister shall make the determination in respect of the application under that subsection. If the determination is made after March 31, 2020, it is deemed to have been made on that date.

Approved applications — payment of benefit

(2) If the Minister approves the application, the Minister shall pay to the survivor, under section 40.4 of the former Act, the retirement income security benefit that they are entitled to, but only for the period beginning on the day on which the benefit begins to be payable under subsection 40.4(2) of that Act and ending on March 31, 2019.

Review

122 If, before April 1, 2019, the Minister made a determination to deny an application for a retirement income security benefit made by a survivor under subsection 40.3(1) of the former Act but, as a result of a review of the determination under section 83, the Minister makes a final determination, on or after April 1, 2019, to approve the application for the benefit, then,

(a) if the final determination is made after March 31, 2020, it is deemed to have been made on that date; and

(b) the Minister shall pay to the survivor, under section 40.3 of the former Act, the retirement income security benefit that they are entitled to, but only for the period beginning on the day on which the benefit begins to be payable under subsection 40.3(2) of that Act and ending on March 31, 2019.

No application — subsection 40.3(1) of former Act

123 If a veteran who died before April 1, 2019 was eligible, or would have been eligible had the veteran applied, for a retirement income security benefit under section 40.1 or 40.2 of the former Act at the time of their death and the veteran's survivor did not make an application for a retirement income security benefit under subsection 40.3(1) of the former Act before April 1, 2019, the following rules apply to the survivor:

(a) if the veteran died before March 1, 2019, the survivor is deemed to have made an application for a retirement income support benefit under subsection 40.3(1) of the former Act on March 31, 2019; and

(b) if the veteran died in the month of March 2019,

(i) the survivor is deemed to have made an application for an income replacement benefit under subsection 26(1) of the new Act on April 1, 2019,

(ii) for the purpose of that application, the veteran is deemed to have been entitled to the income replacement benefit at the time of their death, and

(iii) if the Minister approves the application, then

(A) the day referred to in paragraph 26(2)(a) of the new Act is April 1, 2019,

(B) the monthly amount of the income replacement benefit that is payable to the survivor under section 26 of the new Act is determined under section 26.1 of that Act, subject to subsection 118(2), and

Supplementary Retirement Benefit

Amount paid — veterans

124 (1) The Minister shall pay the amount determined in accordance with subsection (2) to

(a) a veteran who was at any time entitled to continue to receive the earnings loss benefit under subsection 18(4) of the former Act but who, on March 31, 2019, was no longer entitled to that benefit, if that veteran has not received the supplementary retirement benefit to which they are entitled under subsection 25(1) of that Act before April 1, 2019; or

(b) a veteran who, on March 31, 2019, was entitled to continue to receive the earnings loss benefit under subsection 18(4) of the former Act.

Calculation of amount

(2) The amount payable to the veteran under subsection (1) is an amount equal to 2% of the total amount of the earnings loss benefit that would have been payable to the veteran under section 18 of the former Act until March 31, 2019, had any amounts that were payable to the veteran from prescribed sources referred to in subsection 19(1) of that Act not been taken into account.

Reduction

(3) The amount payable to the veteran is to be reduced by any amount of the supplementary retirement benefit that the veteran received before April 1, 2019.

Amount paid — survivors under subsection 25(2) of former Act

125 (1) The Minister shall pay the amount determined in accordance with subsection (2) to a survivor who

(a) is the survivor of a veteran who, at the time of their death, was entitled to continue to receive the earnings loss benefit under subsection 18(4) of the former Act;

(b) was not eligible to receive an earnings loss benefit under section 22 of the former Act on March 31, 2019; and

Calculation of amount

(2) The amount payable to the survivor under subsection (1) is an amount equal to 2% of the total amount of the earnings loss benefit that would have been payable to the veteran under section 18 of the former Act until their death, had any amounts that were payable to the veteran from prescribed sources referred to in subsection 19(1) of that Act not been taken into account.

Amount paid — survivors under subsection 25(3) of former Act

126 (1) The Minister shall pay the amount determined in accordance with subsection (2) to

(a) a survivor who was at any time entitled to the earnings loss benefit under section 22 of the former Act but who, on March 31, 2019, was no longer entitled to that benefit, if that survivor has not received a supplementary retirement benefit under subsection 25(3) of that Act before April 1, 2019; or

(b) a survivor who, on March 31, 2019, was entitled to the earnings loss benefit under section 22 of the former Act.

Calculation of amount

(2) The amount payable to the survivor under subsection (1) is an amount equal to,

(a) in the case of a member's survivor, 2% of the total amount of the earnings loss benefit that would have been payable to the survivor under section 22 of the former Act until March 31, 2019, had any amounts that were payable to the survivor from prescribed sources referred to in subsection 23(3) of that Act not been taken into account; or

(b) in the case of a veteran's survivor, 2% of the sum of the following amounts:

(i) the total amount of the earnings loss benefit that would have been payable to the veteran under section 18 of the former Act until their death, had any amounts that were payable to the veteran from prescribed sources referred to in subsection 19(1) of that Act not been taken into account, and

(ii) the total amount of the earnings loss benefit that would have been payable to the survivor under subsection 22 of the former Act until March 31, 2019, had any amounts that were payable to the survivor from prescribed sources referred to in subsection 23(3) of that Act not been taken into account.

Lump sum

127 An amount that is to be paid under any of sections 124 to 126 is to be paid as a lump sum.

Power to require information or document

128 The Minister may, for the purposes of establishing a person's entitlement to an amount under any of sections 124 to 126, require that person to provide the Minister with any information or document specified by the Minister.

Deeming

129 An amount paid or payable under any of sections 124 to 126 is deemed to be compensation for the purposes of sections 88 to 90 and subsection 93(1).

Transitional Provisions Relating to Pain and Suffering Compensation

Definition of former Act

130 In sections 131 and 132, former Act means this Act as it read immediately before April 1, 2019.

Member or veteran who made election

131 (1) Section 52.1 of the former Act applies to a member or a veteran who, before April 1, 2019, made the election referred to in paragraph 52.1(1)(b) or (c) of that Act and who, on March 31, 2019, was still entitled to receive payments in accordance with that section 52.1.

Member or veteran entitled to make election

(2) If a member or a veteran to whom a disability award is to be paid under section 45, 47 or 48 of the former Act has not, before April 1, 2019, made the election referred to in subsection 52.1(1) of that Act and the prescribed time for making that election has not expired before that date, then the member or veteran may make the election under that subsection. If the member or veteran makes the election referred to in paragraph 52.1(1)(b) or (c) of that Act, section 52.1 of that Act applies to the member or veteran.

Payment

(3) The Minister may pay to the member or veteran the disability award for which the member or veteran made the election.

Non-application of section 90

(4) Section 90 does not apply in respect of the disability award paid under subsection (3) to a member or a veteran who made the election referred to in paragraph 52.1(1)(b) or (c) of the former Act.

Regulations

(5) The Governor in Council may make regulations

(a) respecting the determination of an amount of interest for the purposes of the description of C in paragraph 52.1(1)(b) of the former Act;

(b) respecting the determination of lump sums for the purpose of subsections 52.1(5) and (6) of that Act; and

Monthly amount paid

132 (1) For every month that is included in the period beginning with the month of April 2019 and ending with the month in which the member or veteran dies, the Minister shall pay to a member or a veteran who was paid a disability award, and who is alive on April 1, 2019, the amount determined by the formula

A – [(B – C)/D]

where

A is the amount set out in column 3 of Schedule 3 to this Act, as it read on April 1, 2019, that corresponds to the member's or veteran's extent of disability, as set out in column 2 of that Schedule, for which the disability award was paid;

B is an amount equal to the sum of the following amounts:

(a) the amount of the disability award that was payable to the member or veteran under subsection 52(1) of the former Act or, in the case of a member or a veteran who made the election referred to in paragraph 52.1(1)(b) or (c) of the former Act, the amount of the disability award that would have been payable to the member or veteran if the member or veteran had made the election referred to in paragraph 52.1(1)(a) of the former Act, and

(b) the amount paid to the member or veteran under section 100 of the Budget Implementation Act, 2016, No. 1 in respect of the disability award;

C is an amount equal to the product obtained by multiplying the amount determined in accordance with paragraph (a) by the number determined in accordance with paragraph (b):

(a) the amount set out in column 3 of Schedule 3 to this Act, as it read on April 1, 2019, that corresponds to the member's or veteran's extent of disability, as set out in column 2 of that Schedule, for which the disability award was paid,

(b) the number of months included in the period beginning with the month in which the disability award was paid and ending with the month of March 2019;

D is a number determined in accordance with the regulations.

Regulations

(2) The Governor in Council may make regulations respecting the determination of the number referred to in the description of D in subsection (1).

Periodic adjustment

(3) The amount determined in accordance with subsection (1) is to be periodically adjusted in the same manner as the amounts set out in column 3 of Schedule 3.

Member or veteran in receipt of annual payments

(4) The following rules apply to a member or a veteran to whom an amount is to be paid under subsection (1) in respect of a disability award:

(a) a member or a veteran who made an election referred to in paragraph 52.1(1)(b) or (c) of the former Act before April 1, 2019 in respect of the disability award and who, on March 31, 2019, was still entitled to receive payments in accordance with section 52.1 of the former Act is deemed to have made an election under subsection 52.1(5) of the former Act on April 1, 2019; and

(b) a member or a veteran referred to in subsection 131(2) is, despite that subsection, deemed to have made the election referred to in paragraph 52.1(1)(a) of the former Act.

Power to require information or document

(5) The Minister may require a member or a veteran to whom an amount is to be paid under subsection (1) to provide information or documents to the Minister.

Amount deemed to be compensation

(6) An amount paid or payable under subsection (1) is deemed to be compensation for the purposes of sections 88 to 90 and subsection 93(1).

Application of subsection 88(4)

(7) Subsection 88(4) applies to an amount paid under subsection (1).

Transitional Provisions Relating to Additional Pain and Suffering Compensation

Definitions

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

former Act means this Act as it read immediately before April 1, 2019. (ancienne loi)

new Act means this Act as it reads on April 1, 2019. (nouvelle loi)

Deemed entitlement to additional pain and suffering compensation

(2) If a career impact allowance was payable to a veteran on March 31, 2019 under section 38 of the former Act, then the veteran is deemed, on April 1, 2019, to be entitled to additional pain and suffering compensation under section 56.6 of the new Act and the following rules apply in respect of the veteran:

(a) the physical or mental health problems in respect of which the career impact allowance was payable to the veteran are deemed to be the disabilities in respect of which the veteran is deemed to be entitled to additional pain and suffering compensation;

(b) the monthly amount of additional pain and suffering compensation that is payable to the veteran under section 56.6 of the new Act is determined under subsection 56.6(5) of that Act, subject to subsections (3) and (4); and

(c) despite subsection 56.6(6) of the new Act, additional pain and suffering compensation begins to be payable to the veteran on April 1, 2019.

Extent of veteran's permanent and severe impairment

(3) The extent of the veteran's permanent and severe impairment that is used to determine the amount of additional pain and suffering compensation that is payable to the veteran for the month of April 2019 is assessed in accordance with the following rules:

(a) a veteran to whom the maximum amount of career impact allowance was payable under section 38 of the former Act on March 31, 2019 — without taking into account the amount of any increase to the career impact allowance referred to in subsection 38(3) of that Act — is assessed as having a Grade 1 extent of permanent and severe impairment as set out in Schedule 4 to the new Act;

(b) a veteran to whom the minimum amount of career impact allowance was payable under section 38 of the former Act on March 31, 2019 — without taking into account the amount of any increase to the career impact allowance referred to in subsection 38(3) of that Act — is assessed as having a Grade 3 extent of permanent and severe impairment as set out in Schedule 4 to the new Act; and

(c) a veteran who is not referred to in paragraph (a) or (b) is assessed as having a Grade 2 extent of permanent and severe impairment as set out in Schedule 4 to the new Act.

Protected amount

(4) For every month after the month of April 2019 for which the veteran is entitled, as a result of subsection (2), to additional pain and suffering compensation under section 56.6 of the new Act, the amount of additional pain and suffering compensation that is payable to the veteran under that section is not to be less than the amount of additional pain and suffering compensation that is payable for the month of April 2019.

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

(Section 44.2, subsection 58(1), sections 61 and 65.2, paragraph 94(c), subsection 110(4) and paragraph 111(2)(b))

159 Items 1 to 2.1 of Schedule 2 to the Act are repealed.

160 Schedule 3 to the Act is replaced by the Schedule 3 set out in Schedule 2 to this Act.

161 The Act is amended by adding, after Schedule 3, the Schedule 4 set out in Schedule 3 to this Act.

Transitional Provisions

Definitions

162 The following definitions apply in sections 163 to 177.

common-law partner has the same meaning as in subsection 2(1) of the Veterans Well-being Act. (conjoint de fait)

dependent child has the same meaning as in subsection 2(1) of the Veterans Well-being Act. (enfant à charge)

former Act means the Veterans Well-being Act as it read immediately before April 1, 2019. (ancienne loi)

member has the same meaning as in subsection 2(1) of the Veterans Well-being Act. (militaire)

Minister means the Minister of Veterans Affairs. (ministre)

new Act means the Veterans Well-being Act as it reads on April 1, 2019. (nouvelle loi)

survivor has the same meaning as in subsection 2(1) of the Veterans Well-being Act. (survivant)

veteran has the same meaning as in subsection 2(1) of the Veterans Well-being Act. (vétéran)

Rehabilitation Services and Vocational Assistance

Veterans — determination before April 1, 2019

163 If, before April 1, 2019, the Minister made a determination in respect of an application for rehabilitation services or vocational assistance made by a veteran under section 9 of the former Act, then section 10 of the former Act applies to the veteran in respect of the application.

Veterans — applications pending April 1, 2019

164 If, before April 1, 2019, a veteran made an application for rehabilitation services or vocational assistance under section 9 of the former Act but the Minister did not make a determination in respect of the application before that date, then the Minister must make the determination in respect of the application under that section. Section 10 of the former Act applies to the veteran in respect of the application.

Spouses and common-law partners — April 1, 2019

165 Section 11 of the former Act applies to a veteran's spouse or common-law partner if the Minister, before April 1, 2019,

(a) approved an application for rehabilitation services made by the veteran under section 9 of the former Act; and

(b) determined, based on an assessment of the veteran's needs, that the veteran would not benefit from vocational rehabilitation as a result of their having a diminished earning capacity that is due to the physical or mental health problem in respect of which the rehabilitation services were approved.

Members — determination before April 1, 2019

166 If, before April 1, 2019, the Minister made a determination in respect of an application for rehabilitation services or vocational assistance made by a member under section 9 of the former Act and the member was not released from the Canadian Forces before March 31, 2019, then the determination is deemed not to have been made and the member is deemed to have made an application under section 9 of the new Act on April 1, 2019.

Veterans — determination on or after April 1, 2019 but before April 1, 2024

167 If, on or after April 1, 2019 but before April 1, 2024, the Minister made a determination in respect of an application for services related to medical rehabilitation or psycho-social rehabilitation made by a veteran under section 9 of the new Act, then section 10 of the new Act applies to the veteran in respect of the application.

Veterans — applications pending April 1, 2024

168 If, on or after April 1, 2019 but before April 1, 2024, a veteran made an application for services related to medical rehabilitation or psycho-social rehabilitation under section 9 of the new Act but the Minister did not make a determination in respect of the application before April 1, 2024, then the Minister must make the determination in respect of the application under that section. Section 10 of the new Act applies to the veteran in respect of the application.

Members — determination made on or after April 1, 2019 but before April 1, 2024

169 If, on or after April 1, 2019 but before April 1, 2024, the Minister made a determination in respect of an application for services related to medical rehabilitation or psycho-social rehabilitation made by a member under section 9 of the new Act and the member was not released from the Canadian Forces before March 31, 2024, then the determination is deemed not to have been made.

Limitation — veterans

170 A veteran who is receiving vocational assistance under Part 2 of the Veterans Well-being Act is not eligible for career transition services or an education and training benefit under that Act.

Canadian Forces Income Support Benefit

Pending applications

171 If, before April 1, 2019, a veteran made an application for a Canadian Forces income support benefit under section 27 of the former Act but the Minister did not make a determination in respect of the application before that date, then the Minister must make the determination in respect of the application under that section.

Applications made on or after April 1, 2019

172 If, on or after April 1, 2019, a veteran makes an application for a Canadian Forces income support benefit under section 27 of the new Act and, before the day on which the application is made, the veteran has not received an income replacement benefit under section 18 of that Act, then the Minister must make the determination in respect of the application under that section 27 but any reference to the income replacement benefit in that section is to be read as a reference to the earnings loss benefit.

Pain and Suffering Compensation

Adjustment of Schedule 3

173 On April 1, 2019, the amounts set out in column 4 of Schedule 3 to the new Act are deemed to have been adjusted on January 1, 2019 in the same manner as the amounts set out in column 3 of Schedule 3 to the former Act were adjusted on January 1, 2019.

Pending applications — member or veteran

174 (1) If, before April 1, 2019, a member or a veteran made an application for a disability award under section 45, 47 or 48 of the former Act but the Minister did not make a determination in respect of the application before that date, then the member or veteran is deemed to have made an application for pain and suffering compensation under section 45, 47 or 48 of the new Act, as the case may be, on April 1, 2019.

No determination

(2) For the purposes of subsection (1), the Minister did not make a determination in respect of an application if the Minister did not assess the member's or veteran's extent of disability in respect of the application.

Pending applications — survivor or dependent child

175 (1) If, before April 1, 2019, a survivor or a person who was, at the time of a member's or a veteran's death, a dependent child made an application for a disability award under subsection 50(1) of the former Act but the Minister did not make a determination in respect of the application before that date, then the survivor or person is deemed to have made an application for pain and suffering compensation under section 56 of the new Act on April 1, 2019.

No determination

Deceased member or veteran

176 If a member or a veteran who made an application for a disability award under section 45, 47 or 48 of the former Act dies before the Minister makes a determination in respect of the application and, on March 31, 2019, the Minister has not made a determination to pay, under subsection 50(2) of the former Act, the disability award to a survivor or a person who was, at the time of the member's or veteran's death, a dependent child, the Minister may pay pain and suffering compensation to the survivor or person under subsection 55(1) of the new Act as if the member or veteran had made an application for pain and suffering compensation under section 45, 47 or 48 of the new Act, as the case may be, on April 1, 2019.

Review, appeal and reconsideration — disability award

177 Any review, appeal or reconsideration that is continued on or commenced on or after April 1, 2019, in relation to a determination made before that date in respect of an application for a disability award made under the former Act is to be conducted as if the determination was a determination in respect of an application for pain and suffering compensation made on that date under the new Act.

Consequential Amendments

R.S., c. C-28; 1990, c. 43, s. 43

Children of Deceased Veterans Education Assistance Act

178 Subparagraphs (f)(ii) and (iii) of the definition student in section 2 of the Children of Deceased Veterans Education Assistance Act are replaced by the following:

(ii) a disability award or pain and suffering compensation has been granted under that Act in respect of the member or veteran, and

(iii) the member's or veteran's extent of disability, in respect of the aggregate of all of the member's or veteran's disability assessments under that Act and, if applicable, the Pension Act, is equal to or greater than the lowest extent of disability set out in column 2 of Schedule 3 to the Veterans Well-being Act in respect of a rate of 50%. (étudiant)

R.S., c. V-1; 2000, c. 34, par. 95(a)(F)

Department of Veterans Affairs Act

179 Subparagraph 5(g.1)(i.1) of the Department of Veterans Affairs Act is replaced by the following:

(i.1) the person died of an injury or a disease for which a disability award, pain and suffering compensation or a death benefit was payable under the Veterans Well-being Act,

1995, c. 18

Veterans Review and Appeal Board Act

180 Subsection 19(2) of the Veterans Review and Appeal Board Act is replaced by the following:

Refusal to establish review panel

(2) The Chairperson, or any member to whom the Chairperson has delegated the authority, may refuse to establish a review panel to hear an application for review of a decision concerning the amount of an award under the Pension Act, or the amount of a critical injury benefit, pain and suffering compensation, additional pain and suffering compensation, a death benefit, a clothing allowance or a detention benefit under Part 3 of the Veterans Well-being Act, if the Chairperson or member, as the case may be, considers the application to be such that no reasonable review panel could dispose of it in a manner favourable to the applicant.

181 (1) Subsection 34(1) of the Act is replaced by the following:

Application for compassionate award

34 (1) A person who has been refused an award under the Pension Act or a critical injury benefit, a disability award, pain and suffering compensation, additional pain and suffering compensation, a death benefit, a clothing allowance or a detention benefit under Part 3 of the Veterans Well-being Act, and who has exhausted all procedures for review and appeal under this Act may apply to the Board for a compassionate award.

(2) Subsection 34(3) of the Act is replaced by the following:

Granting of compassionate award

(3) A panel may grant a compassionate award if it considers the case to be specially meritorious and the applicant is unqualified to receive an award under the Pension Act or a critical injury benefit, a disability award, pain and suffering compensation, additional pain and suffering compensation, a death benefit, a clothing allowance or a detention benefit under Part 3 of the Veterans Well-being Act.

2014, c. 20

Economic Action Plan 2014 Act, No. 1

182 (1) The portion of subsection 102(1) of the Economic Action Plan 2014 Act, No. 1 before the formula is replaced by the following:

Earnings loss benefit

102 (1) A person who received an earnings loss benefit under subsection 18(1) or 22(1) of the Veterans Well-being Act, as it read immediately before April 1, 2019, for the period that began on May 29, 2012 and ended on September 30, 2012 — or who would have been eligible to receive that benefit if the disability pension paid to the person under the Pension Act for that period had not been taken into account — is entitled to receive an amount determined in accordance with the formula

(2) Subsection 102(2) of the Act is replaced by the following:

Payment

(2) Any amount paid or payable under subsection (1) is deemed to be an income replacement benefit paid or payable under the Veterans Well-being Act.

2016, c. 7

Budget Implementation Act, 2016, No. 1

183 The definition Act in section 99 of the Budget Implementation Act, 2016, No. 1 is replaced by the following:

Act means

(a) in this section and sections 100 to 103, the Veterans Well-being Act as it read on April 1, 2017; and

(b) in sections 107, 110 and 111, the Veterans Well-being Act. (Loi)

184 Section 111 of the Act is replaced by the following:

Income Tax Act

111 An amount paid or payable under any of sections 100 to 103 is deemed, for the purposes of paragraph 81(1)(d.1) of the Income Tax Act, to be pain and suffering compensation or a death benefit, as the case may be, payable to the taxpayer under Part 3 of the Act.

Coming into Force

April 1, 2019

185 (1) Subject to subsection (2), the provisions of this Part come into force on April 1, 2019.

April 1, 2024

(2) Section 128, subsections 129(2) and (4) and sections 167 to 169 come into force on April 1, 2024.

Enactment of Act

Enactment

186 The Greenhouse Gas Pollution Pricing Act, whose text is as follows and whose Schedules 1 to 4 are set out in Schedule 4 to this Act, is enacted as follows:

An Act to mitigate climate change through the pan-Canadian application of pricing mechanisms to a broad set of greenhouse gas emission sources and to make consequential amendments to other Acts

Preamble

Whereas there is broad scientific consensus that anthropogenic greenhouse gas emissions contribute to global climate change;

Whereas recent anthropogenic emissions of greenhouse gases are at the highest level in history and present an unprecedented risk to the environment, including its biological diversity, to human health and safety and to economic prosperity;

Whereas impacts of climate change, such as coastal erosion, thawing permafrost, increases in heat waves, droughts and flooding, and related risks to critical infrastructures and food security are already being felt throughout Canada and are impacting Canadians, in particular the Indigenous peoples of Canada, low-income citizens and northern, coastal and remote communities;

Whereas Parliament recognizes that it is the responsibility of the present generation to minimize impacts of climate change on future generations;

Whereas the United Nations, Parliament and the scientific community have identified climate change as an international concern which cannot be contained within geographic boundaries;

Whereas Canada has ratified the United Nations Framework Convention on Climate Change, done in New York on May 9, 1992, which entered into force in 1994, and the objective of that Convention is the stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system;

Whereas Canada has also ratified the Paris Agreement, done in Paris on December 12, 2015, which entered into force in 2016, and the aims of that Agreement include holding the increase in the global average temperature to well below 2°C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels, recognizing that this would significantly reduce the risks and impacts of climate change;

Whereas the Government of Canada is committed to achieving Canada's Nationally Determined Contribution – and increasing it over time – under the Paris Agreement by taking comprehensive action to reduce emissions across all sectors of the economy, accelerate clean economic growth and build resilience to the impacts of climate change;

Whereas it is recognized in the Pan-Canadian Framework on Clean Growth and Climate Change that climate change is a national problem that requires immediate action by all governments in Canada as well as by industry, non-governmental organizations and individual Canadians;

Whereas greenhouse gas emissions pricing is a core element of the Pan-Canadian Framework on Clean Growth and Climate Change;

Whereas behavioural change that leads to increased energy efficiency, to the use of cleaner energy, to the adoption of cleaner technologies and practices and to innovation is necessary for effective action against climate change;

Whereas the pricing of greenhouse gas emissions on a basis that increases over time is an appropriate and efficient way to create incentives for that behavioural change;

Whereas greenhouse gas emissions pricing reflects the "polluter pays" principle;

Whereas some provinces are developing or have implemented greenhouse gas emissions pricing systems;

Whereas the absence of greenhouse gas emissions pricing in some provinces and a lack of stringency in some provincial greenhouse gas emissions pricing systems could contribute to significant deleterious effects on the environment, including its biological diversity, on human health and safety and on economic prosperity;

And whereas it is necessary to create a federal greenhouse gas emissions pricing scheme to ensure that, taking provincial greenhouse gas emissions pricing systems into account, greenhouse gas emissions pricing applies broadly in Canada;

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

Short Title

Short title

1 This Act may be cited as the Greenhouse Gas Pollution Pricing Act.

Her Majesty

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

Division 1

Interpretation and General Rules of Application

Interpretation

Definitions

3 The following definitions apply in this Part, Part 1 of Schedule 1 and Schedule 2.

adjustment day means any of commencement day, January 1, 2019, January 1, 2020, January 1, 2021, January 1, 2022 and any prescribed day or any day meeting prescribed conditions. (date d'ajustement)

aircraft means any conveyance that is suitable for the transportation of individuals or goods by air. (aéronef)

assessment means an assessment under this Part and includes a reassessment. (cotisation)

aviation gasoline means a substance suitable for generating power by means of an aircraft engine other than a turbine. (essence d'aviation)

aviation turbo fuel means a substance suitable for generating power by means of an aircraft engine that is a turbine. (carburéacteur)

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

biodiesel means

(a) a particular substance

(i) that is

(A) made up of mono-alkyl esters of long chain fatty acids derived entirely from biological matter available on a renewable or recurring basis, or

(B) made from plant or animal matter using a hydrogenation process,

(ii) that may contain other substances, materials or things, that are not described in subparagraph (i) if the combined proportion of those other substances, materials or things does not exceed 1.5% of the particular substance, and

(iii) that is suitable for generating power by means of a diesel engine or for use in a furnace, boiler or open flame burner when used

(A) on its own,

(B) after being blended with light fuel oil, or

(b) a prescribed substance, material or thing. (biodiesel)

biogasoline means

(a) a particular substance

(i) that is derived entirely from biological matter available on a renewable or recurring basis,

(ii) that may contain water if the proportion of the water does not exceed 1% of the particular substance,

(iii) that may contain other substances, materials or things that are not described in subparagraph (i) or (ii) if the combined proportion of those other substances, materials or things does not exceed 6% of the particular substance, and

(iv) that is suitable for generating power by means of an internal combustion engine other than a diesel engine when used

(A) on its own,

(B) after being blended with gasoline, or

(b) a prescribed substance, material or thing. (bioessence)

biomethane means

(a) a substance that is derived entirely from biological matter available on a renewable or recurring basis and that is primarily methane; or

(b) a prescribed substance, material or thing. (biométhane)

coke means a solid carbonaceous residue that

(a) is derived from low-ash, low-sulfur bituminous coal from which the volatile constituents are driven off by baking in an oven with the result that the fixed carbon and residual ash are fused together; and

(b) is suitable as a source of energy. (coke)

coke oven gas means gas that is recovered from the carbonization of coal at high temperatures in a coke oven for the production of coke and that is suitable as a source of energy. (gaz de four à coke)

combustible waste means

(a) tires or asphalt shingles whether in whole or in part; or

(b) a prescribed substance, material or thing. (déchet combustible)

commencement day means the earliest day on which any of sections 17 to 26 may apply in a listed province. (date de référence)

Commissioner means, except in sections 95, 96 and 164 the Commissioner of Revenue appointed under section 25 of the Canada Revenue Agency Act. (commissaire)

confirmed delivery service means certified or registered mail or any other delivery service that provides a record that a notice or document has been sent or delivered. (service de messagerie)

covered air journey in respect of a listed province means a journey by aircraft that is

(a) from a particular location to another location, both of which are in the listed province; or

(b) a prescribed journey or a journey meeting prescribed conditions. (itinéraire aérien assujetti)

covered facility means a facility or property that is

(a) a covered facility within the meaning of section 169 that is registered by the Minister of the Environment under section 171 other than a prescribed facility or property, a facility or property of a prescribed class or a facility or property meeting prescribed conditions; or

(b) a prescribed facility or property, a facility or property of a prescribed class or a facility or property meeting prescribed conditions. (installation assujettie)

covered marine journey in respect of a listed province means a journey by vessel that is

(a) from a particular location to another location, both of which are in the listed province; or

(b) a prescribed journey or a journey meeting prescribed conditions. (itinéraire maritime assujetti)

delivery in respect of fuel or in respect of a substance, material or thing includes, except in the definition confirmed delivery service and in Division 6, making the fuel, substance, material or thing available. (livraison)

distribution system means a pipe or any system or arrangement of pipes for the delivery or distribution of marketable natural gas to ultimate consumers or users. (réseau de distribution)

eligible farming activity means

(a) the operation of eligible farming machinery on a farm for the purposes of farming;

(b) the operation of eligible farming machinery for the purposes of going from a location at a farm to another location at a farm; or

eligible farming machinery means property that is primarily used for the purposes of farming and that is

(a) a farm truck or a tractor;

(b) a vehicle not licensed to be operated on a public road;

(d) prescribed property;

but does not include

(e) a vehicle that is an automobile as defined in subsection 248(1) of the Income Tax Act;

(f) property that is used for the purpose of providing heating or cooling to a building or similar structure; or

(g) prescribed property. (machinerie agricole admissible)

excluded air journey means a journey by aircraft that

(a) begins or ends in a listed province other than

(i) a covered air journey, or

(ii) a prescribed journey or a journey meeting prescribed conditions; or

(b) is a prescribed journey or a journey meeting prescribed conditions. (itinéraire aérien exclu)

excluded marine journey means a journey by vessel that

(a) begins or ends in a listed province other than

(i) a covered marine journey, or

(ii) a prescribed journey or a journey meeting prescribed conditions; or

(b) is a prescribed journey or a journey meeting prescribed conditions. (itinéraire maritime exclu)

farmer means a person that carries on a farming business with a reasonable expectation of profit. (agriculteur)

farming includes tillage of the soil, livestock raising or exhibiting, maintaining of horses for racing, raising of poultry, fur farming, dairy farming, fruit growing and the keeping of bees, but does not include an office or employment under a person engaged in the business of farming. (agriculture)

fuel means

(a) a substance, material or thing set out in column 2 of any table in Schedule 2, other than

(i) combustible waste,

(ii) a substance, material or thing that is prepackaged in a factory sealed container of 10 L or less, or

(iii) a prescribed substance, material or thing; and

(b) a prescribed substance, material or thing. (combustible)

gas liquids means a mixture in gaseous or liquid form that consists of two or more of ethane, propane, butane or pentanes plus and that

(a) is separated, as a result of processing, from natural gas or crude oil for the first time;

(b) has not been

(i) analyzed to assess composition, or

(ii) processed into separate identifiable fuels; and

(c) is not a mixture of ethane, propane, butane or pentanes plus created after the ethane, propane, butane or pentanes plus have been processed into separate identifiable fuels and subsequently remixed into a blend of one or more of the fuels. (liquides de gaz)

gasoline means a substance, including biogasoline, that is suitable for generating power by means of an internal combustion engine other than a diesel engine and that is not any other type of fuel. (essence)

heavy fuel oil means a substance that is not petroleum coke and that is made up of a distillate or a residual of crude oil and that has a viscosity greater than 14 centistokes at 50°C. (mazout lourd)

high heat value coal means coal with a heating value exceeding 27,000 kJ/kg. (charbon à pouvoir calorifique supérieur)

import means import into Canada. (importation)

interjurisdictional air carrier in respect of a type of fuel means a person that, in the course of providing a commercial service of transporting individuals or goods by aircraft, uses fuel of that type, in the ordinary course of business, in excluded air journeys. (transporteur aérien entre administrations)

interjurisdictional marine carrier in respect of a type of fuel means a person that, in the course of providing a commercial service of transporting individuals or goods by vessel, uses fuel of that type, in the ordinary course of business, in excluded marine journeys. (transporteur maritime entre administrations)

interjurisdictional rail carrier in respect of a type of fuel means a person that uses fuel of that type, in the ordinary course of business, in a listed province in the course of providing a commercial service of transporting individuals or goods by rail

(a) from one province to another province; or

(b) between a place in Canada and a place outside Canada. (transporteur ferroviaire entre administrations)

journey means the transportation of individuals or goods by aircraft or vessel from a particular location to another location where the aircraft or vessel is next stopped if any of the following activities occurs at the particular location and if any of the following activities occurs at the other location:

(a) individuals embark or disembark the aircraft or vessel;

(b) goods are loaded onto or removed from the aircraft or vessel; or

(c) the aircraft or vessel is stopped to allow for its servicing or refuelling or for emergency or safety purposes. (itinéraire)

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

kerosene means a light petroleum distillate that meets the requirements of the National Standard of Canada CAN/CGSB-3.3, Kerosene, as amended from time to time, but does not include aviation turbo fuel. (kérosène)

light fuel oil means a substance that

(a) is made up of

(i) a distillate or a residual of crude oil that has a viscosity not greater than 14 centistokes at 50°C, or

(ii) biodiesel;

(b) is suitable for generating power by means of a diesel engine or is suitable for use in a furnace, boiler or open flame burner; and

(c) is not butane, ethane, gas liquids, aviation turbo fuel, kerosene, naphtha, propane, pentanes plus or still gas. (mazout léger)

listed province means a province or area listed in Part 1 of Schedule 1. (province assujettie)

locomotive includes self-propelled on-track railway equipment but does not include vehicles that are suitable for movement both on and off lines of railway. (locomotive)

low heat value coal means coal with a heating value of 27,000 kJ/kg or less. (charbon à pouvoir calorifique inférieur)

marketable natural gas means natural gas that consists of at least 90% methane and that meets the specifications for pipeline transport and sale for general distribution to the public. (gaz naturel commercialisable)

methanol does not include methanol derived entirely from biological matter available on a renewable or recurring basis. (méthanol)

Minister means the Minister of National Revenue. (ministre)

mixture means a substance, material or thing that is a combination of two or more types of fuel. (mélange)

naphtha means a refined or partially refined petroleum fraction with an approximate boiling temperature between 50°C and 204°C other than aviation gasoline, aviation turbo fuel, gasoline, heavy fuel oil, kerosene, light fuel oil or petroleum coke. (naphta)

natural gas includes a combination of natural gas and biomethane but does not include still gas. (gaz naturel)

net charge for a reporting period of a person means the amount determined for the reporting period of the person under subsection 71(2). (redevance nette)

non-covered activity means an activity in respect of which fuel

(a) is used

(i) as a raw material in an industrial process that produces another fuel or another substance, material or thing,

(ii) as a solvent or diluent in the production or transport of crude bitumen or another substance, material or thing, or

(iii) in prescribed circumstances; and

(b) is not put into a fuel system that produces heat or energy and is not burned or flared. (activité non assujettie)

non-marketable natural gas means natural gas other than marketable natural gas. (gaz naturel non commercialisable)

officer means, except in sections 90, 138 and 160,

(a) a person who is appointed or employed in the administration or enforcement of this Part; and

(b) with respect to imported goods that have not been released under the Customs Act, an officer as defined in subsection 2(1) of that Act. (préposé)

pentanes plus means a substance that is obtained from the production or processing of raw gas, condensate or crude oil, that is not any other type of fuel and that is

(a) pentane;

(b) hydrocarbons heavier than pentane; or

person means an individual, a partnership, a corporation, the estate or succession of a deceased individual, a trust, a joint venture, a government or a body that is a society, a union, a club, an association, a commission or another organization of any kind. (personne)

personal representative of a deceased individual or the estate or succession of a deceased individual, means the executor of the individual's will, the liquidator of the individual's succession, the administrator of the estate or any person that is responsible under the appropriate law for the proper collection, administration, disposition and distribution of the assets of the estate or succession. (représentant personnel)

petroleum coke includes

(a) a carbonaceous solid produced from an oil refinery coke unit or an oil or bitumen upgrader coker unit;

(b) a carbonaceous solid produced from a cracking process, including coking, fluid coking, flexicoking and delayed coking; or

prescribed means

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

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

(d) in any other case, prescribed by regulation or determined in accordance with rules prescribed by regulation. (version anglaise seulement)

produce means, in respect of fuel, to obtain fuel or bring fuel into existence by any method or process including

(a) mining, extracting, removing or otherwise obtaining from the earth;

(b) manufacturing, synthesizing, refining or blending; or

qualifying aviation fuel means a type of fuel that is aviation gasoline, aviation turbo fuel or a prescribed type of fuel. (combustible d'aviation admissible)

qualifying farming fuel means a type of fuel that is gasoline, light fuel oil or a prescribed type of fuel. (combustible agricole admissible)

qualifying marine fuel means a type of fuel that is heavy fuel oil, light fuel oil, marketable natural gas or a prescribed type of fuel. (combustible maritime admissible)

qualifying motive fuel means a type of fuel that is gasoline, light fuel oil, marketable natural gas, propane or a prescribed type of fuel. (combustible moteur admissible)

qualifying rail fuel means a type of fuel that is light fuel oil, marketable natural gas or a prescribed type of fuel. (combustible ferroviaire admissible)

rate in respect of a type of fuel, or in respect of combustible waste, for a listed province at a particular time means

(a) unless paragraph (b) applies, the rate set out in column 5 of the table in Schedule 2 that is applicable for the period of time that includes the particular time and that is opposite

(i) that type of fuel or combustible waste, as the case may be, set out in column 2 of that table, and

(ii) the name of that listed province set out in column 4 of that table; and

(b) if prescribed circumstances exist or prescribed conditions are met, the prescribed rate or the rate determined in prescribed manner that is applicable at the particular time for that listed province and for that type of fuel or combustible waste, as the case may be. (taux)

record means any material on which representations, in any form, of information or concepts are recorded or marked and that is capable of being read or understood by a person or a computer system or other device. (registre)

registered air carrier in respect of a type of fuel means a person that is registered under Division 4 of this Part as an air carrier in respect of that type of fuel. (transporteur aérien inscrit)

registered distributor in respect of a type of fuel means a person that is registered under Division 4 of this Part as a distributor in respect of that type of fuel. (distributeur inscrit)

registered emitter means a person that is registered under Division 4 of this Part as an emitter. (émetteur inscrit)

registered importer in respect of a type of fuel means a person that is registered under Division 4 of this Part as an importer in respect of that type of fuel. (importateur inscrit)

registered marine carrier in respect of a type of fuel means a person that is registered under Division 4 of this Part as a marine carrier in respect of that type of fuel. (transporteur maritime inscrit)

registered rail carrier in respect of a type of fuel means a person that is registered under Division 4 of this Part as a rail carrier in respect of that type of fuel. (transporteur ferroviaire inscrit)

registered road carrier in respect of a type of fuel means a person that is registered under Division 4 of this Part as a road carrier in respect of that type of fuel. (transporteur routier inscrit)

registered specified air carrier in respect of a type of fuel means a person that is registered under Division 4 of this Part as a specified air carrier in respect of that type of fuel. (transporteur aérien désigné inscrit)

registered specified marine carrier in respect of a type of fuel means a person that is registered under Division 4 of this Part as a specified marine carrier in respect of that type of fuel. (transporteur maritime désigné inscrit)

registered specified rail carrier in respect of a type of fuel means a person that is registered under Division 4 of this Part as a specified rail carrier in respect of that type of fuel. (transporteur ferroviaire désigné inscrit)

registered user in respect of a type of fuel or in respect of combustible waste means a person that is registered under Division 4 of this Part as a user in respect of that type of fuel or in respect of combustible waste. (utilisateur inscrit)

reporting period of a person means the reporting period of the person as determined under section 68. (période de déclaration)

specified commercial vehicle means a vehicle

(a) that is used to provide commercial transportation of individuals or goods by road

(i) from one province to another province, or

(ii) from a particular location to another location if one location is in Canada and one location is outside Canada;

(b) that

(i) has two axles and a gross vehicle weight exceeding 11,797 kg,

(ii) has three or more axles regardless of weight, or

(iii) when combined with the trailer with which it is used, has a gross vehicle weight exceeding 11,797 kg; and

(c) that is not a recreational vehicle, including a motor home, bus or pickup truck with attached camper, if used solely for a particular individual's personal use or enjoyment or the personal use or enjoyment of any other individual at the particular individual's expense. (véhicule commercial désigné)

still gas means gas suitable for use in an oil refinery that is produced as a result of distillation, cracking, reforming or other oil refining processes. (gaz de distillation)

supply tank means a receptacle of a vehicle in which fuel is held for use in the operation of

(a) the vehicle;

(b) an auxiliary component of the vehicle; or

(c) an auxiliary component of another vehicle, if the other vehicle is attached to the vehicle. (réservoir d'alimentation)

use includes flaring but does not include venting. (utilisation)

vehicle means any conveyance that is suitable for the transportation of individuals or goods by water, land or air. (véhicule)

vessel means any conveyance that is suitable for the transportation of individuals or goods by water. (navire)

Meaning of administration or enforcement of this Part

4 (1) For greater certainty, a reference in this Part to the administration or enforcement of this Part includes the collection of any amount payable under this Part.

Regulations under this Part

(2) For greater certainty, a reference to "this Part" in section 3, subsection 4(1) or sections 5 to 168 is to be read as a reference to "this Part or regulations made under this Part".

Covered facility of a person

5 For the purposes of this Part, a covered facility is a covered facility of a person if

(a) a covered facility certificate in respect of the covered facility has been issued to the person by the Minister of the Environment under section 171; or

(b) the person is a prescribed person, a person of a prescribed class or a person meeting prescribed conditions in respect of the covered facility.

Arm's length

6 (1) For the purposes of this Part,

(a) related persons are deemed not to deal with each other at arm's length; and

(b) it is a question of fact whether persons not related to each other are, at any particular time, dealing with each other at arm's length.

Related persons

(2) For the purposes of this Part, persons are related to each other if they are related persons within the meaning of subsection 6(2) of the Excise Act, 2001.

Exclusive economic zone and continental shelf

7 For greater certainty, an area, for the purposes of this Part, may include all or part of the exclusive economic zone of Canada or the continental shelf of Canada.

General Rules of Application

Determining quantities — litres

8 (1) Unless any of subsections (5), (6) and (8) apply, for the purpose of determining a quantity of fuel of a certain type under this Part, if the rate in respect of that type of fuel is expressed in $/litre, the quantity of fuel is the number of litres that the fuel would occupy at 15°C.

Determining quantities — cubic metres

(2) Unless subsection (7) or (8) applies, for the purpose of determining a quantity of fuel of a certain type under this Part, if the rate in respect of that type of fuel is expressed in $/cubic metre, the quantity of fuel is the number of cubic metres that the fuel would occupy at 15°C and 101.325 kPa.

Determining quantities — coal

(3) Unless subsection (8) applies, for the purpose of determining a quantity of high heat value coal or low heat value coal under this Part, the quantity of coal is the weight of the coal measured in tonnes and normalized to

(a) 7.7% moisture by weight in the case of high heat value coal; or

(b) 19% moisture by weight in the case of low heat value coal.

Determining quantities — coke

(4) Unless subsection (8) applies, for the purpose of determining a quantity of coke under this Part, the quantity of coke is the weight of the coke measured in tonnes and, if a moisture content is prescribed, normalized to the prescribed moisture content.

Gasoline with proportion of biogasoline exceeding 10%

(5) Unless subsection (8) applies, if a quantity of gasoline contains a particular proportion of biogasoline (expressed as a percentage) that exceeds 10%, the quantity of gasoline is deemed, for the purpose of this Part, to be the number of litres determined by the formula

A × (100% – B)/95%

where

A is the number of litres that the gasoline would occupy at 15°C; and

B is the particular proportion.

Light fuel oil with proportion of biodiesel exceeding 5%

(6) Unless subsection (8) applies, if a quantity of light fuel oil contains a particular proportion of biodiesel (expressed as a percentage) that exceeds 5%, the quantity of light fuel oil is deemed, for the purpose of this Part, to be the number of litres determined by the formula

A × (100% – B)/98%

where

A is the number of litres that the light fuel oil would occupy at 15°C; and

B is the particular proportion.

Natural gas that contains biomethane

(7) Unless subsection (8) applies, if a quantity of marketable natural gas or non-marketable natural gas contains a particular proportion of biomethane (expressed as a percentage), for the purpose of this Part, the quantity of marketable natural gas or non-marketable natural gas is deemed to be the number of cubic metres determined by the formula

A × (100% – B)

where

A is the number of cubic metres that the marketable natural gas or non-marketable natural gas would occupy at 15°C and 101.325 kPa; and

B is the particular proportion.

Determining quantities — prescribed type of fuel

(8) For the purpose of determining a quantity under this Part of a prescribed type of fuel, the quantity of fuel of that type is determined in prescribed manner if prescribed conditions are met.

Determining quantities

9 Any determination of a quantity of fuel under this Part is to be made in a manner satisfactory to the Minister.

Fuel brought into a listed province

10 (1) For the purposes of this Part, if a particular person is transporting fuel on behalf of another person and the fuel is, at a particular time, brought into a listed province in the course of being transported to a location in the listed province, the other person and not the particular person is deemed to have brought the fuel into the listed province at the particular time.

Fuel removed from a listed province

(2) For the purposes of this Part, if a particular person is transporting fuel on behalf of another person and the fuel is, at a particular time, removed from a listed province in the course of being transported to a location outside the listed province, the other person and not the particular person is deemed to have removed the fuel from the listed province at the particular time.

Fuel in transit through a listed province

11 For the purposes of this Part, if a person at a particular time brings a quantity of fuel into a listed province from a place in Canada, if the fuel is being brought into the listed province in the course of the transportation of the fuel to a place outside the listed province, if the fuel is transported without being stored in the listed province (otherwise than in a manner that is solely incidental to the transportation) and if the person is a registered emitter or is registered under Division 4 of this Part in respect of that type of fuel otherwise than only as a road carrier, then the fuel is deemed not to have been brought into the listed province at the particular time.

Fuel imported in a listed province

12 For the purposes of this Part, if a person at a particular time imports a quantity of fuel at a location in a listed province, if the fuel is imported in the course of the transportation of the fuel to a place outside the listed province, if the fuel is transported without being stored in the listed province (otherwise than in a manner that is solely incidental to the transportation) and if the person is a registered emitter or is registered under Division 4 of this Part in respect of that type of fuel otherwise than only as a road carrier, then the fuel is deemed not to have been imported at a location in the listed province at the particular time.

Importer

13 For the purposes of this Part, the person that is considered to import fuel is the importer, owner or other person that is liable under the Customs Act to pay duty levied under section 20 of the Customs Tariff on the fuel or that would be liable to pay that duty on the fuel if the fuel were subject to that duty.

Delivery of marketable natural gas — distribution system

14 For the purposes of this Part, if marketable natural gas is delivered to a particular person by means of a distribution system, the person that is considered to deliver the marketable natural gas is

(a) unless paragraph (b) applies, the person that measures, on a regular basis and for the purpose of billing the particular person or providing the particular person's billing information to a third party, the particular person's consumption or usage of marketable natural gas that is delivered by means of the distribution system; or

(b) if prescribed circumstances exist or prescribed conditions are met, the person that is a prescribed person, a person of a prescribed class or a person meeting prescribed conditions.

Substance marketed as fuel

15 If a substance, material or thing is not fuel but is sold, represented or marketed as fuel of a particular type, the substance, material or thing is deemed, for the purposes of this Part, to be fuel of the particular type, except if the substance, material or thing is prepackaged in a factory sealed container of 10 L or less, is combustible waste or is a prescribed substance, material or thing.

Mixtures

16 (1) A mixture is deemed to be fuel of the type that is present in the highest proportion in the mixture.

Prescribed mixtures

(2) Despite subsection (1), if prescribed conditions are met in respect of a mixture, the mixture is deemed to be fuel of a prescribed type.

Non-application

(3) This section does not apply to a substance, material or thing that would be fuel in the absence of subsections (1) and (2).

Division 2

Application of Charge

SUBDIVISION a

General Application of Charge to Fuel and Combustible Waste

Charge — delivery by registered distributor

17 (1) Subject to this Part, a particular registered distributor in respect of a type of fuel that delivers, at a particular time, fuel of that type in a listed province to another person must pay to Her Majesty in right of Canada a charge in respect of the fuel and the listed province in the amount determined under section 40. The charge becomes payable at the particular time.

Charge not payable

(2) The charge under subsection (1) is not payable if

(a) the particular registered distributor delivers the fuel in the listed province to another person that is

(i) in respect of that type of fuel, a registered distributor, a registered specified air carrier, a registered specified marine carrier, a registered specified rail carrier or a registered user,

(ii) a registered emitter,

(iii) a farmer, if the fuel is a qualifying farming fuel, or

(iv) a prescribed person, a person of a prescribed class or a person meeting prescribed conditions, if prescribed circumstances exist; and

(b) an exemption certificate applies in respect of the delivery in accordance with section 36.

Charge not payable — ships' stores

(3) The charge under subsection (1) is not payable if the fuel is, in accordance with the Ships' Stores Regulations, designated as ships' stores for use on board a conveyance of a class prescribed under those regulations.

Charge — use by registered distributor

18 (1) Subject to this Part, every registered distributor in respect of a type of fuel that uses, at a particular time, fuel of that type in a listed province must pay to Her Majesty in right of Canada a charge in respect of the fuel and the listed province in the amount determined under section 40. The charge becomes payable at the particular time.

Deemed use — supply tank

(2) For the purposes of subsection (1), if a registered distributor in respect of a type of fuel transfers fuel of that type at a particular time into a supply tank of a vehicle (other than a specified commercial vehicle) of the registered distributor at a particular location and

(a) if the particular location is in a listed province, the registered distributor is deemed to use the fuel at the particular time in the listed province; and

(b) if the particular location is not in a listed province, the registered distributor is deemed to use the fuel at the particular time otherwise than in a listed province.

Exception

(3) Subsection (2) does not apply if the registered distributor is also a registered emitter and the particular location is a covered facility of the registered distributor.

Charge not payable — used at a covered facility

(4) The charge under subsection (1) is not payable to the extent that the fuel is used by the registered distributor at a covered facility of the registered distributor if the registered distributor is also a registered emitter.

Charge not payable — used in a non-covered activity

(5) The charge under subsection (1) is not payable to the extent that the fuel is used in a non-covered activity.

Charge — bringing into a listed province

19 (1) Subject to this Part, every person that brings, at a particular time, fuel into a listed province from a place in Canada must pay to Her Majesty in right of Canada a charge in respect of the fuel and the listed province in the amount determined under section 40 if the person is a registered emitter or is, in respect of that type of fuel, a registered user, a registered importer, a registered air carrier, a registered marine carrier or a registered rail carrier. The charge becomes payable at the particular time.

Charge — importation

(2) Subject to this Part, every person that imports, at a particular time, fuel at a location in a listed province must pay to Her Majesty in right of Canada a charge in respect of the fuel and the listed province in the amount determined under section 40 if the person is a registered emitter or is, in respect of that type of fuel, a registered user, a registered importer, a registered air carrier, a registered marine carrier or a registered rail carrier. The charge becomes payable at the particular time.

Non-application

(3) Subsections (1) and (2) do not apply, in respect of a type of fuel, to a person that is a registered distributor in respect of that type of fuel.

Charge not payable — supply tanks

(4) The charge under subsection (1) or (2) is not payable if the fuel is brought in or imported in a supply tank of a vehicle and the fuel is for use in the operation of

(a) the vehicle;

(b) an auxiliary component of the vehicle; or

Exception

(5) Subsection (4) does not apply to fuel that is brought into a listed province, or imported at a location in a listed province, by a person

(a) if the fuel is transported in a supply tank of a specified commercial vehicle of the person, the fuel is a type of qualifying motive fuel and the person

(i) is a registered emitter or is, in respect of that type of fuel, a registered importer or a registered user, and

(ii) is required to be registered under Division 4 of this Part as a road carrier in respect of that type of fuel but is not so registered;

(b) if the fuel is brought in or imported in a supply tank of a locomotive and the person is an interjurisdictional rail carrier in respect of that type of fuel and is not, in respect of that type of fuel, registered as an air carrier, marine carrier or rail carrier;

(c) to the extent that the fuel is brought in or imported in a supply tank of an aircraft for use in a covered air journey in respect of the listed province, if the person is an interjurisdictional air carrier in respect of that type of fuel and is not, in respect of that type of fuel, registered as an air carrier, marine carrier or rail carrier; or

(d) to the extent that the fuel is brought in or imported in a supply tank of a vessel for use in a covered marine journey in respect of the listed province, if the person is an interjurisdictional marine carrier in respect of that type of fuel and is not, in respect of that type of fuel, registered as an air carrier, marine carrier or rail carrier.

Application

20 (1) This section does not apply, in respect of a type of fuel, to a person that is

(a) a registered distributor in respect of that type of fuel;

(b) a registered importer in respect of that type of fuel;

(d) a registered specified marine carrier or registered marine carrier in respect of that type of fuel;

(e) a registered specified rail carrier or registered rail carrier in respect of that type of fuel;

(f) a registered emitter; or

(g) a registered user in respect of that type of fuel.

Charge — bringing into a listed province

(2) Subject to this Part, every person that brings, at a particular time, fuel into a listed province from a place in Canada must pay to Her Majesty in right of Canada a charge in respect of the fuel and the listed province in the amount determined under section 40. The charge becomes payable at the particular time.

Charge — importation

(3) Subject to this Part, every person that imports, at a particular time, fuel at a location in a listed province must pay to Her Majesty in right of Canada a charge in respect of the fuel and the listed province in the amount determined under section 40. The charge becomes payable at the particular time.

Application of Customs Act

(4) The charge under subsection (3) is to be paid and collected under the Customs Act, and interest and penalties are to be imposed, calculated, paid and collected under that Act, as if the charge were a customs duty levied on the fuel under the Customs Tariff and, for those purposes, the Customs Act, with any modification that the circumstances require, applies subject to this Part.

Charge not payable — small quantities

(5) A charge under subsection (2) or (3) is not payable if the fuel is brought in or imported otherwise than in a supply tank of a vehicle, the fuel is gasoline, kerosene, light fuel oil or propane and the quantity of the fuel does not exceed 200 L.

Charge not payable — supply tanks

(6) A charge under subsection (2) or (3) is not payable if the fuel is brought in or imported in a supply tank of a vehicle and the fuel is for use in the operation of

(a) the vehicle;

(b) an auxiliary component of the vehicle; or

Exception — supply tanks

(7) Subsection (6) does not apply

(a) if the person is required to be registered under Division 4 of this Part as a specified air carrier or air carrier in respect of that type of fuel but is not so registered;

(b) if the person is required to be registered under Division 4 of this Part as a specified marine carrier or marine carrier in respect of that type of fuel but is not so registered;

(c) if the person is required to be registered under Division 4 of this Part as a specified rail carrier or rail carrier in respect that type of fuel but is not so registered;

(d) if the fuel is in a supply tank of a specified commercial vehicle and the person is required to be registered under Division 4 of this Part as a road carrier in respect of that type fuel but is not so registered;

(e) if the person is an interjurisdictional rail carrier in respect of that type of fuel and the fuel is brought in or imported in a supply tank of a locomotive;

(f) to the extent that the fuel is brought in or imported in a supply tank of an aircraft for use in a covered air journey in respect of the listed province, if the person is an interjurisdictional air carrier in respect of that type of fuel; or

(g) to the extent that the fuel is brought in or imported in a supply tank of a vessel for use in a covered marine journey in respect of the listed province, if the person is an interjurisdictional marine carrier in respect of that type of fuel.

Charge — production

21 (1) Subject to this Part, a person that produces at a particular time fuel in a listed province must pay to Her Majesty in right of Canada a charge in respect of the fuel and the listed province in the amount determined under section 40 unless the person is

(a) a registered distributor in respect of that type of fuel;

(b) a registered specified air carrier in respect of that type of fuel;

(d) a registered specified rail carrier in respect of that type of fuel; or

(e) a prescribed person, a person of a prescribed class or a person meeting prescribed conditions.

When charge payable

(2) The charge under subsection (1) becomes payable at the particular time referred to in that subsection.

Charge — diversion from covered facility

22 (1) Subject to this Part, if at any time fuel is delivered in a listed province by a registered distributor in respect of that type of fuel to a person and an exemption certificate applies in respect of the delivery in accordance with section 36, the person must pay to Her Majesty in right of Canada a charge in respect of the fuel and the listed province in the amount determined under section 40 to the extent that the fuel is removed, at a later time, from a covered facility of the person in the listed province.

Charge — diversion of fuel intended for use at covered facility

(2) Subject to this Part, if at any time fuel is delivered in a listed province by a registered distributor in respect of that type of fuel to a person at a location that is not a covered facility of the person, if an exemption certificate applies in respect of the delivery in accordance with section 36 and if the certificate includes the declaration referred to in subparagraph 36(1)(b)(v), the person must, unless a charge under subsection (1) applies in respect of the fuel and the listed province, pay to Her Majesty in right of Canada a charge in respect of the fuel and the listed province in the amount determined under section 40 to the extent that, at a later time, the fuel is

(a) used by the person in the listed province otherwise than at a covered facility; or

(b) delivered by the person to another person unless the other person is a registered distributor in respect of that type of fuel and an exemption certificate applies in respect of the delivery in accordance with section 36.

Charge — diversion from covered facility following a rebate

(3) Subject to this Part, if a quantity of fuel is, at any time, brought to a covered facility of a person in a listed province and a rebate under section 44 in respect of the fuel and the listed province is payable to the person, then the person must pay to Her Majesty in right of Canada a charge in respect of the fuel and the listed province in the amount determined under section 40, to the extent the fuel is removed, at a later time, from a covered facility of the person in the listed province.

When charge payable

(4) The charge under any of subsections (1) to (3) becomes payable at the later time referred to in whichever of those subsections applies.

Charge not payable

(5) The charge under any of subsections (1) to (3) is not payable by the person if

(a) the fuel is removed from the covered facility of the person in the listed province and

(i) is delivered by the person to a registered distributor in respect of that type of fuel and an exemption certificate applies in respect of the delivery in accordance with section 36, or

(ii) is brought to another covered facility of the person in the listed province;

(b) at the later time referred to in whichever of those subsections is applicable, the person

(i) is not a registered emitter, or

(ii) is a registered distributor in respect of that type of fuel; or

Charge — ceasing to be a covered facility

(6) Subject to this Part, if at any time fuel is delivered to a person in a listed province by a registered distributor in respect of that type of fuel and an exemption certificate applies in respect of the delivery in accordance with section 36, the person must pay to Her Majesty in right of Canada a charge in respect of the fuel and the listed province in the amount determined under section 40 to the extent that the fuel, at a later time, is held by the person at, or is in transit to, a facility or property of the person in the listed province that ceases, at the later time, to be a covered facility of the person in the listed province. The charge becomes payable at the later time.

Charge — ceasing to be a covered facility following a rebate

(7) Subject to this Part, if a quantity of fuel is, at any time, brought to a covered facility of a person in a listed province and a rebate under section 44 in respect of the fuel and the listed province is payable to the person, then the person must pay to Her Majesty in right of Canada a charge in respect of the fuel and the listed province in the amount determined under section 40, to the extent that the fuel, at a later time, is held by the person at, or is in transit to, a facility or property of the person in the listed province that ceases, at the later time, to be a covered facility of the person in the listed province. The charge becomes payable at the later time.

Charge not payable

(8) The charge under subsection (6) or (7) is not payable if

(a) at the later time referred to in whichever of those subsections is applicable, the person

(i) is not a registered emitter, or

(ii) is a registered distributor in respect of that type of fuel; or

(b) prescribed circumstances exist or prescribed conditions are met.

Charge — ceasing to be an emitter

(9) Subject to this Part, if at any time fuel is delivered to a person in a listed province by a registered distributor in respect of that type of fuel, if an exemption certificate applies in respect of the delivery in accordance with section 36 and if the Minister, at a later time, cancels the person's registration as an emitter, the person must pay to Her Majesty in right of Canada a charge in respect of the fuel and the listed province in the amount determined under section 40 to the extent that, at the later time, the fuel is held by the person at, or is in transit to, a facility or property that was a covered facility of the person in the listed province immediately before the later time. The charge becomes payable at the later time.

Charge — ceasing to be an emitter following a rebate

(10) Subject to this Part, if a quantity of fuel is, at any time, brought to a covered facility of a person in a listed province, if a rebate under section 44 in respect of the fuel and the listed province is payable to the person and if the Minister, at a later time, cancels the person's registration as an emitter, then the person must pay to Her Majesty in right of Canada a charge in respect of the fuel and the listed province in the amount determined under section 40 to the extent that, at the later time, the fuel is held by the person at, or is in transit to, a facility or property that was a covered facility of the person in the listed province immediately before the later time. The charge becomes payable at the later time.

Charge not payable

(11) The charge under subsection (9) or (10) is not payable if

(a) at the later time referred to in whichever of those subsections is applicable, the person is a registered distributor in respect of that type of fuel; or

(b) prescribed circumstances exist or prescribed conditions are met.

Charge not payable

(12) The charge under subsection (1), (2), (6) or (9) is not payable if a charge is payable under section 37 in respect of the fuel.

Charge — diversion by registered user

23 (1) Subject to this Part, if at any time fuel is delivered in a listed province by a registered distributor in respect of that type of fuel to a particular person that is a registered user in respect of that type of fuel and an exemption certificate applies in respect of the delivery in accordance with section 36, the particular person must pay to Her Majesty in right of Canada a charge in respect of the fuel and the listed province in the amount determined under section 40 to the extent that the fuel is, at a later time,

(a) used by the particular person in the listed province otherwise than in a non-covered activity; or

(b) delivered by the particular person to another person unless the other person is a registered distributor in respect of that type of fuel and an exemption certificate applies in respect of the delivery in accordance with section 36.

When charge payable

(2) The charge under subsection (1) becomes payable at the later time referred to in that subsection.

Charge not payable

(3) The charge under subsection (1) is not payable if

(a) at the later time referred to in that subsection, the particular person is not a registered user;

(b) a charge is payable under section 37 in respect of the fuel; or

Charge — ceasing to be registered user

(4) Subject to this Part, if at any time fuel is delivered in a listed province to a particular person by a registered distributor in respect of that type of fuel, if the particular person is a registered user in respect of that type of fuel, if an exemption certificate applies in respect of the delivery in accordance with section 36 and if the Minister, at a later time, cancels the particular person's registration as a user, the particular person must pay to Her Majesty in right of Canada a charge in respect of the fuel and the listed province in the amount determined under section 40 to the extent that, at the later time, the fuel is held by the particular person in the listed province. The charge becomes payable at the later time.

Charge not payable

(5) The charge under subsection (4) is not payable if

(a) at the later time referred to in that subsection, the Minister registers the particular person as a distributor in respect of that type of fuel;

(b) at the later time referred to in that subsection, the particular person is a registered emitter, but only to the extent that, at the later time, the fuel is held at, or is in transit to, a covered facility of the particular person;

(d) prescribed circumstances exist or prescribed conditions are met.

Charge — diversion by a farmer

24 (1) Subject to this Part, if at any time fuel is delivered in a listed province by a registered distributor in respect of that type of fuel to a particular person that is a farmer and an exemption certificate applies in respect of the delivery in accordance with section 36, the particular person must pay to Her Majesty in right of Canada a charge in respect of the fuel and the listed province in the amount determined under section 40 to the extent that, at a later time, the fuel is

(a) used by the particular person in the listed province otherwise than in eligible farming activities; or

When charge payable

(2) The charge under subsection (1) becomes payable at the later time referred to in that subsection.

Charge not payable

(3) The charge under subsection (1) is not payable if

(a) at the later time referred to in that subsection, the particular person is not a farmer;

(b) a charge is payable under section 37 in respect of the fuel; or

Charge — ceasing to be a farmer

(4) Subject to this Part, if at any time fuel is delivered in a listed province by a registered distributor in respect of that type of fuel to a particular person that is a farmer, if an exemption certificate applies in respect of the delivery in accordance with section 36 and if the particular person ceases, at a later time, to be a farmer, the particular person must pay to Her Majesty in right of Canada a charge in respect of the fuel and the listed province in the amount determined under section 40 to the extent that, at the later time, the fuel is held by the particular person in the listed province. The charge becomes payable at the later time.

Charge not payable

(5) The charge under subsection (4) is not payable if

(a) at the later time referred to in that subsection, the particular person is registered as a distributor in respect of that type of fuel;

(d) prescribed circumstances exist or prescribed conditions are met.

Charge — combustible waste

25 Subject to this Part, every person that, at a particular time, burns combustible waste in a listed province for the purposes of producing heat or energy must pay to Her Majesty in right of Canada a charge in respect of the combustible waste and the listed province in the amount determined under section 41. The charge becomes payable at the particular time.

Charge — regulations

26 Subject to this Part, a prescribed person, a person of a prescribed class or a person meeting prescribed conditions must pay to Her Majesty in right of Canada a charge in respect of a type of fuel or combustible waste in the amount determined in prescribed manner if prescribed circumstances exist or prescribed conditions are met. The charge becomes payable at the prescribed time.

Charge not payable — regulations

27 A charge under this Part in respect of a type of fuel or combustible waste is not payable

(a) by a prescribed person, a person of a prescribed class or a person meeting prescribed conditions; or

(b) if prescribed circumstances exist or prescribed conditions are met.

SUBDIVISION B

Application of Charge to Air, Marine, Rail and Road Carriers

Net fuel quantity — registered specified air or marine carrier

28 The net fuel quantity of a person that is a registered specified air carrier or registered specified marine carrier in respect of a type of fuel for a reporting period of the person, for that type of fuel and for a listed province is the amount determined by the formula

A – B

where

A is the total of all quantities, each of which is a quantity of fuel of that type that is

(a) used by the person in the listed province during the reporting period other than a quantity of fuel of that type used in the listed province

(i) in a journey by aircraft or vessel, in a locomotive or in a specified commercial vehicle, or

(ii) in a non-covered activity if the person is a registered user in respect of that type of fuel,

(b) used by the person in a covered air journey in respect of the listed province during the reporting period,

(d) used by the person in a locomotive in the listed province during the reporting period,

(e) used by the person in a specified commercial vehicle in the listed province during the reporting period,

(f) delivered in the listed province by the person to another person during the reporting period unless

(i) the other person is a registered distributor in respect of that type of fuel and an exemption certificate applies in respect of the delivery in accordance with section 36,

(ii) the person and the other person are both registered specified air carriers in respect of that type of fuel and an exemption certificate applies in respect of the delivery in accordance with section 36, or

(iii) the person and the other person are both registered specified marine carriers in respect of that type of fuel and an exemption certificate applies in respect of the delivery in accordance with section 36, or

(g) a prescribed quantity of fuel of that type, or a quantity of fuel of that type determined in prescribed manner, for the reporting period and the listed province; and

B is

(a) the total of all quantities, each of which is a prescribed quantity of fuel of that type, or a quantity of fuel of that type determined in prescribed manner, for the reporting period and the listed province, or

(b) unless paragraph (a) applies, zero.

Net fuel quantity — registered specified rail carrier

29 The net fuel quantity of a person that is a registered specified rail carrier in respect of a type of fuel for a reporting period of the person, for that type of fuel and for a listed province is the amount determined by the formula

A + B – C

where

A is the total of all quantities, each of which is a quantity of fuel of that type that is used by the person in a locomotive in the listed province during the reporting period estimated in a manner satisfactory to the Minister;

B is the total of all quantities, each of which is a quantity of fuel of that type that is

(a) used by the person in the listed province during the reporting period other than a quantity of fuel of that type used in the listed province

(i) in a journey by aircraft or vessel, in a locomotive or in a specified commercial vehicle, or

(ii) in a non-covered activity if the person is a registered user in respect of that type of fuel,

(b) used by the person in a covered air journey in respect of the listed province during the reporting period,

(d) used by the person in a specified commercial vehicle in the listed province during the reporting period,

(e) delivered in the listed province by the person to another person during the reporting period unless

(i) the other person is a registered distributor in respect of that type of fuel and an exemption certificate applies in respect of the delivery in accordance with section 36, or

(ii) the other person is a registered specified rail carrier in respect of that type of fuel and an exemption certificate applies in respect of the delivery in accordance with section 36, or

(f) a prescribed quantity of fuel of that type, or a quantity of fuel of that type determined in prescribed manner, for the reporting period and the listed province; and

C is

(b) unless paragraph (a) applies, zero.

Net fuel quantity — registered air or marine carrier

30 The net fuel quantity of a person that is a registered air carrier or registered marine carrier in respect of a type of fuel for a reporting period of the person, for that type of fuel and for a listed province is the amount determined by the formula

A – B

where

A is the total of all quantities, each of which is a quantity of fuel of that type that is

(a) used by the person in a covered air journey in respect of the listed province during the reporting period,

(b) used by the person in a covered marine journey in respect of the listed province during the reporting period,

(d) used by the person in a specified commercial vehicle in the listed province during the reporting period,

(e) removed from a supply tank of an aircraft, vessel, locomotive or specified commercial vehicle of the person at a location in the listed province during the reporting period, or

(f) a prescribed quantity of fuel of that type, or a quantity of fuel of that type determined in prescribed manner, for the reporting period and the listed province; and

B is the total of all quantities, each of which is a quantity of fuel of that type that is

(a) transferred into a supply tank of an aircraft, vessel, locomotive or specified commercial vehicle of the person at a location in the listed province during the reporting period, or

(b) a prescribed quantity of fuel of that type, or a quantity of fuel of that type determined in prescribed manner, for the reporting period and the listed province.

Net fuel quantity — registered rail carrier

31 The net fuel quantity of a person that is a registered rail carrier in respect of a type of fuel for a reporting period of the person, for that type of fuel and for a listed province is the amount determined by the formula

A + B – C

where

B is the total of all quantities, each of which is a quantity of fuel of that type that is

(a) used by the person in a covered air journey in respect of the listed province during the reporting period,

(b) used by the person in a covered marine journey in respect of the listed province during the reporting period,

(d) removed from a supply tank of an aircraft, vessel, locomotive or specified commercial vehicle of the person at a location in the listed province during the reporting period, or

(e) a prescribed quantity of fuel of that type, or a quantity of fuel of that type determined in prescribed manner, for the reporting period and the listed province; and

C is the total of all quantities, each of which is a quantity of fuel of that type that is

(a) transferred into a supply tank of an aircraft, vessel, locomotive or specified commercial vehicle of the person at a location in the listed province during the reporting period, or

(b) a prescribed quantity of fuel of that type, or a quantity of fuel of that type determined in prescribed manner, for the reporting period and the listed province.

Net fuel quantity — registered road carrier

32 The net fuel quantity of a person that is a registered road carrier in respect of a type of fuel for a reporting period of the person, for that type of fuel and for a listed province is the amount determined by the formula

A – B

where

A is the total of all quantities, each of which is a quantity of fuel of that type that is

(a) used by the person in a specified commercial vehicle in the listed province (unless the fuel is used at a covered facility of the person and the person is a registered emitter) during the reporting period,

(b) removed from a supply tank of a specified commercial vehicle of the person at a location in the listed province during the reporting period, or

(c) a prescribed quantity of fuel of that type, or a quantity of fuel of that type determined in prescribed manner, for the reporting period and the listed province; and

B is the total of all quantities, each of which is a quantity of fuel of that type that is

(a) transferred into a supply tank of a specified commercial vehicle of the person at a location in the listed province (unless the location is a covered facility of the person and the person is a registered emitter) during the reporting period, or

(b) a prescribed quantity of fuel of that type, or a quantity of fuel of that type determined in prescribed manner, for the reporting period and the listed province.

Annual net fuel adjustment — rail carrier

33 If, at any time in a particular calendar year, a person is a registered specified rail carrier or registered rail carrier in respect of a type of fuel, the annual net fuel adjustment of the person for the particular calendar year, for that type of fuel and for a listed province is the amount determined by the formula

A - B

where

A is the total of all quantities, each of which is a quantity of fuel of that type that is

(a) used by the person in a locomotive in the listed province at any time in the particular calendar year when the person is a registered specified rail carrier or registered rail carrier in respect of that type of fuel, or

(b) a prescribed quantity of fuel of that type, or a quantity of fuel of that type determined in prescribed manner, for the particular calendar year and the listed province; and

B is the total of all quantities, each of which is a quantity of fuel of that type that is

(a) the total determined for A in section 29 or 31 for a reporting period of the person in the particular calendar year, for that type of fuel and for the listed province, or

(b) a prescribed quantity of fuel of that type, or a quantity of fuel of that type determined in prescribed manner, for the particular calendar year and the listed province.

Charge — net fuel quantity

34 If the net fuel quantity, determined under any of sections 28 to 32, of a person for a reporting period, for a type of fuel and for a listed province is a positive amount, the person must pay to Her Majesty in right of Canada a charge in respect of that net fuel quantity and the listed province in the amount determined under section 40. The charge becomes payable on the last day of the reporting period.

Charge — annual net fuel adjustment

35 If the annual net fuel adjustment, determined under section 33, of a person for a particular calendar year, for that type of fuel and for a listed province is a positive amount, the person must pay to Her Majesty in right of Canada a charge in respect of that annual net fuel adjustment and the listed province in the amount determined under section 40. The charge becomes payable on June 30 of the calendar year following the particular calendar year.

SUBDIVISION C

Exemption Certificate

Exemption certificate

36 (1) If fuel is delivered to a person by another person, an exemption certificate applies in respect of the delivery, for the purposes of this Part, only if

(a) the certificate is made in prescribed form containing prescribed information;

(b) the certificate includes a declaration by the person

(i) that the person is a registered distributor in respect of that type of fuel,

(ii) that the person is a registered specified air carrier in respect of that type of fuel,

(iii) that the person is a registered specified marine carrier in respect of that type of fuel,

(iv) that the person is a registered specified rail carrier in respect of that type of fuel,

(v) that the person is a registered emitter and that the fuel is for use at a covered facility of the person,

(vi) that the person is a registered user in respect of that type of fuel and that the fuel is for use in a non-covered activity,

(vii) that the person is a farmer, that the location at which the fuel is delivered is a farm, that the fuel is for use exclusively in the operation of eligible farming machinery or of an auxiliary component of eligible farming machinery and that all or substantially all of the fuel is for use in the course of eligible farming activities, or

(viii) that the person is a prescribed person, a person of a prescribed class or a person meeting prescribed conditions and that prescribed circumstances exist;

(c) the person provides, in a manner satisfactory to the Minister, the certificate in respect of the delivery to the other person; and

(d) the other person retains the certificate and indicates to the person, in a manner satisfactory to the Minister, that the delivery is subject to the certificate.

Exemption certificate — regulations

(2) Despite subsection (1), if prescribed circumstances exist or prescribed conditions are met, an exemption certificate applies, for the purposes of this Part, in respect of a delivery of fuel in accordance with prescribed rules.

Charge — false declaration

37 (1) If a particular person delivers fuel in a listed province to another person at a particular time, if an exemption certificate applies in respect of the delivery in accordance with subsection 36(1) and if the declaration referred to in paragraph 36(1)(b) is, at the particular time, false, the following rules apply:

(a) the other person must pay to Her Majesty in right of Canada a charge in respect of the fuel and the listed province in the amount determined under section 40;

(b) the other person is liable to pay, in addition to any other penalty under this Part, a penalty equal to 25% of the amount of the charge under paragraph (a) payable in respect of the fuel; and

(c) if the particular person knows, or ought to have known, that the declaration is, at the particular time, false, the particular person and the other person are jointly and severally, or solidarily, liable for the payment of the charge in respect of the fuel and the listed province under paragraph (a), the penalty under paragraph (b) and any related interest and penalties.

When charge payable

(2) The charge under subsection (1) becomes payable at the particular time referred to in that subsection.

SUBDIVISION D

Application of Charge in Special Circumstances

Charge — fuel held on adjustment day

38 (1) Subject to subsection (3), every person that holds a quantity of a type of fuel in a listed province at the beginning of an adjustment day must pay to Her Majesty in right of Canada a charge in respect of the fuel and the listed province in the amount determined by the formula

A – B

where

A is the amount that would be the amount of a charge in respect of the quantity of the fuel and the listed province determined under section 40 if that charge had become payable on the adjustment day; and

B is

(a) if the adjustment day is commencement day, zero, and

(b) in any other case, the amount that would be the amount of a charge in respect of the quantity of the fuel and the listed province determined under section 40 if that charge had become payable on the day before the adjustment day.

Exception

(2) Subsection (1) does not apply to a quantity of fuel held by a person if the fuel was delivered to the person by a registered distributor in respect of that type of fuel and

(a) the person is a registered emitter and the fuel is held at, or is in transit to, a covered facility of the person;

(b) the person is a registered user in respect of that type of fuel and an exemption certificate applies in respect of the delivery in accordance with section 36; or

(c) the person is a farmer, the fuel is a qualifying farming fuel, and an exemption certificate applies in respect of the delivery in accordance with section 36.

When charge payable

(3) The charge under subsection (1) becomes payable on the adjustment day.

Charge not payable

(4) A charge under subsection (1) in respect of a quantity of a type of fuel held at the beginning of an adjustment day by a person in a listed province is not payable

(a) if the person is

(i) a registered distributor in respect of that type of fuel,

(ii) a registered specified air carrier in respect of that type of fuel,

(iii) a registered specified marine carrier in respect of that type of fuel, or

(iv) a registered specified rail carrier in respect of that type of fuel;

(b) the fuel is, in accordance with the Ships' Stores Regulations, designated as ships' stores for use on board a conveyance of a class prescribed under those regulations; or

Requirement to determine quantity of fuel

(5) Every person that holds fuel (other than in a supply tank of a vehicle) in a listed province at the beginning of an adjustment day and that is, or that can reasonably be expected to be, liable to pay a charge under this section in respect of the fuel and the listed province must determine the quantity of fuel of that type held in the listed province by that person at the beginning of the adjustment day.

Charge — ceasing to be registered

39 (1) If a person holds, at a particular time, a quantity of a type of fuel in a listed province, if the person was immediately before the particular time registered as a distributor, specified air carrier, specified marine carrier or specified rail carrier in respect of that type of fuel and if the Minister cancels that registration at the particular time, the person must pay to Her Majesty in right of Canada a charge in respect of the fuel and the listed province in the amount determined under section 40, unless the Minister also registers the person at the particular time as

(a) a distributor in respect of that type of fuel;

(b) a specified air carrier in respect of that type of fuel;

(d) a specified rail carrier in respect of that type of fuel.

Exception

(2) Subsection (1) does not apply to fuel that is held by the person referred to in that subsection if that person is a registered emitter at the particular time but only to the extent that the fuel is, at the particular time, held by the person at, or is in transit to, a covered facility of the person.

When charge payable

(3) The charge under subsection (1) becomes payable at the particular time referred to in that subsection.

SUBDIVISION E

Amount of Charge

Charge amount — fuel

40 (1) The amount of a charge payable under this Division (other than section 38) in respect of fuel and a listed province is equal to the amount determined by the formula

A × B

where

A is

(a) if the charge becomes payable under section 34, the net fuel quantity,

(b) if the charge becomes payable under section 35, the annual net fuel adjustment, or

B is

(a) if the charge becomes payable under section 35, the rate in respect of fuel of that type for the listed province applicable on December 31 of the calendar year that precedes the calendar year that includes the time at which the charge becomes payable, and

(b) in any other case, the rate in respect of fuel of that type for the listed province applicable at the time the charge becomes payable.

Charge amount — mixture

(2) Despite subsection (1), if a manner is prescribed in respect of a mixture that is deemed to be fuel of a prescribed type under subsection 16(2), the amount of a charge payable under this Division in respect of such a mixture is equal to the amount determined in prescribed manner.

Charge amount — regulations

(3) Despite subsection (1), if prescribed circumstances exist or prescribed conditions are met, the amount of a charge payable under this Division in respect of fuel and a listed province is equal to the amount determined in prescribed manner.

Charge amount — combustible waste

41 (1) The amount of a charge payable under section 25 in respect of combustible waste and a listed province is equal to the amount determined by the formula

A × B

where

A is the quantity, expressed as a weight measured in tonnes, of the combustible waste; and

B is the rate in respect of combustible waste for the listed province applicable at the time the charge becomes payable.

Charge amount — regulations

(2) Despite subsection (1), if prescribed circumstances exist or prescribed conditions are met, the amount of a charge payable in respect of combustible waste and a listed province is equal to the amount determined in prescribed manner.

Division 3

Rebates

Statutory recovery rights

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

Rebate — fuel removed from listed province

43 (1) If at a particular time a person that is a registered emitter or is, in respect of that type of fuel, a registered user, a registered importer, registered air carrier, registered marine carrier or registered rail carrier removes a quantity of fuel of that type from a listed province, the Minister must pay to the person a rebate in respect of the quantity of fuel, the listed province and the reporting period of the person that includes the particular time if, at an earlier time in a particular reporting period,

(a) the person brought the quantity of fuel into the listed province from a place in Canada or imported the fuel at a location in the listed province, a charge under section 19 or 20 was payable by the person at the earlier time in respect of the fuel and the listed province and

(i) if that charge was payable under section 19 or subsection 20(2), that charge was taken into account in the determination of the net charge for the particular reporting period of the person, or

(ii) if that charge was payable under subsection 20(3), that charge was paid in accordance with subsection 20(4);

(b) the person removed the quantity of fuel from a covered facility of the person in the listed province and a charge under subsection 22(1) or (2)

(i) became payable by the person at the earlier time in respect of the quantity of fuel and the listed province, and

(ii) is taken into account in the determination of the net charge for the particular reporting period of the person; or

(c) the quantity of fuel was held by the person at, or the quantity of fuel was in transit to, a facility or property of the person in the listed province that ceased, at the earlier time, to be a covered facility of the person and a charge under subsection 22(4) or (5)

(i) became payable by the person at the earlier time in respect of the quantity of fuel and the listed province, and

(ii) is taken into account in the determination of the net charge for the particular reporting period of the person.

Amount of rebate

(2) The amount of the rebate under subsection (1) is equal to the amount of the charge referred to in whichever of paragraphs (1)(a) to (c) applies.

Rebate — fuel brought to covered facility

44 (1) If at a particular time a person is a registered emitter and brings a quantity of fuel to a covered facility of the person in a listed province for use at a covered facility of the person in the listed province, the Minister must pay to the person a rebate in respect of the fuel, the listed province and the reporting period of the person that includes the particular time if, at an earlier time in a particular reporting period,

(i) if that charge was payable under section 19 or subsection 20(2), that charge was taken into account in the determination of the net charge for the particular reporting period of the person, or

(ii) if that charge was payable under subsection 20(3), the charge was paid in accordance with subsection 20(4);

(b) the person removed the quantity of fuel from a covered facility of the person in the listed province, a charge under subsection 22(1) or (2) was payable by the person at the earlier time in respect of the quantity of fuel and the listed province and that charge was taken into account in the determination of the net charge for the particular reporting period of the person; or

(i) became payable by the person at the earlier time in respect of the quantity of fuel and the listed province, and

(ii) is taken into account in the determination of the net charge for the particular reporting period of the person.

Amount of rebate

(2) The amount of the rebate under subsection (1) is equal to the amount of the charge referred to in whichever of paragraphs (1)(a) to (c) applies.

Rebate — fuel used in non-covered activity

45 (1) If a person, at a particular time in a reporting period of the person, is a registered user in respect of a type of fuel and the person uses a quantity of fuel of that type in a non-covered activity in a listed province, the Minister must pay to the person a rebate in respect of the fuel, the listed province and the reporting period if

(a) the person, at an earlier time in a particular reporting period of the person, brought the quantity of fuel into the listed province from a place in Canada or imported the fuel at a location in the listed province;

(b) a charge under section 19 or 20 was payable by the person at the earlier time in respect of the quantity of fuel and the listed province and

(i) if that charge was payable under section 19 or subsection 20(2), that charge was taken into account in the determination of the net charge for the particular reporting period of the person, or

(ii) if that charge was payable under subsection 20(3), the charge was paid in accordance with subsection 20(4); and

Amount of rebate

(2) The amount of the rebate under subsection (1) is equal to the amount of the charge referred to in paragraph (1)(b).

Rebate — net fuel quantity

46 (1) If a net fuel quantity, determined under any of sections 28 to 32, of a person for a reporting period, for a type of fuel and for a listed province is a negative amount, the Minister must pay to the person a rebate in respect of that net fuel quantity, the listed province and the reporting period.

Amount of rebate

(2) The amount of a rebate payable under subsection (1) is equal to the amount determined by the formula

A × B

where

A is the net fuel quantity referred to in that subsection; and

B is the rate in respect of fuel of that type for the listed province applicable on the last day of the reporting period referred to in that subsection.

Amount of rebate — regulations

(3) Despite subsection (2), if prescribed circumstances exist or prescribed conditions are met, the amount of a rebate payable under this section is equal to the amount determined in prescribed manner.

Rebate — annual net fuel adjustment

47 (1) If an annual net fuel adjustment of a person, determined under section 33, for a calendar year, for a type of fuel and for a listed province is a negative amount, the Minister must pay to the person a rebate in respect of that annual net fuel adjustment and the listed province.

Amount of rebate

(2) The amount of a rebate payable under subsection (1) is equal to the amount determined by the formula

A × B

where

A is the annual net fuel adjustment referred to in that subsection; and

B is the rate in respect of fuel of that type for the listed province applicable on December 31 of the calendar year referred to in that subsection.

Amount of rebate — regulations

Rebate — regulations

48 The Minister must pay a rebate in respect of fuel or combustible waste and a listed province to a prescribed person, a person of a prescribed class or a person meeting prescribed conditions in the amount determined in prescribed manner if prescribed circumstances exist or prescribed conditions are met.

Rebate — payment in error

49 (1) The Minister must pay a rebate to a person if the person paid an amount in excess of the amount that was payable by that person under this Part whether the amount was paid by mistake or otherwise.

Amount of rebate

(2) The amount of a rebate payable under subsection (1) by the Minister is the amount of the excess referred to in that subsection.

Restriction on rebate

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

(a) the amount was taken into account as an amount required to be paid by the person in respect of a reporting period of the person and the Minister has assessed the person for that period under section 108; or

(b) the amount was an amount assessed under section 108.

Application for rebate

(4) Despite any other provision under this Part, a rebate under this section in respect of an amount is not to be paid to a person unless an application for the rebate is

(a) made in prescribed form containing prescribed information; and

(b) filed with the Minister in prescribed manner within two years after the earlier of the day that the amount was taken into account in determining the net charge for a reporting period of the person and the day that the amount was paid to the Receiver General.

One application per month

(5) Not more than one application for a rebate under this section may be made by a person in a calendar month.

Restriction on rebate

50 A rebate is not to be paid to a person under this Division

(a) to the extent that it can reasonably be regarded that the person has obtained or is entitled to obtain a rebate, refund or remission of the amount under any other section of this Act or under any other Act of Parliament; or

(b) if prescribed circumstances exist or prescribed conditions are met.

Restriction on rebate

51 A rebate under this Division is not to be paid to a person at any time unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Part, the Excise Tax Act, the Income Tax Act, the Excise Act, 2001 and the Air Travellers Security Charge Act have been filed with the Minister.

Application for rebate

52 Despite any other provision under this Part, a rebate under this Division, other than section 49, in respect of a particular reporting period of a person is not to be paid unless an application for the rebate

(a) is made in prescribed form containing prescribed information;

(b) unless paragraph (c) applies, is filed with the Minister in prescribed manner

(i) on or before the day on or before which the return under section 69 is required to be filed for the last reporting period of the person that ends within two years after the end of the particular reporting period, and

(ii) with the return in respect of the reporting period in which the amount of the rebate is taken into account in determining the net charge for the reporting period; and

(c) if the rebate is payable under section 47 in respect of an annual net fuel adjustment for a particular calendar year, is filed with the Minister in prescribed manner

(i) on or before the day on which the return under section 69 is required to be filed for the reporting period of the person that includes June 30 of the year following the particular calendar year, and

(ii) with the return in respect of the reporting period that includes June 30 of the year following the particular calendar year.

Single application

53 Only one application may be made under this Division for a rebate with respect to any matter.

Restriction — bankruptcy

54 If a trustee is appointed under the Bankruptcy and Insolvency Act to act in the administration of the estate or succession of a bankrupt, a rebate under this Part that the bankrupt was entitled to claim before the appointment must not be paid after the appointment unless all returns required under this Part, the Excise Tax Act, the Income Tax Act, the Excise Act, 2001 and the Air Travellers Security Charge Act to be filed for reporting periods of the bankrupt ending before the appointment have been filed and all amounts required under this Part, the Excise Tax Act, the Income Tax Act, the Excise Act, 2001 and the Air Travellers Security Charge Act to be paid by the bankrupt in respect of those reporting periods have been paid.

Division 4

Registration, Reporting Periods, Returns and Payments

SUBDIVISION A

Registration

Distributor — registration required

55 (1) A person is required to be registered, for the purposes of this Part, as a distributor in respect of

(a) both marketable natural gas and non-marketable natural gas, if

(i) the person produces marketable natural gas or non-marketable natural gas in a listed province,

(ii) the person imports marketable natural gas or non-marketable natural gas at a location in a listed province otherwise than in a supply tank of a vehicle,

(iii) the person brings marketable natural gas or non-marketable natural gas into a listed province from a place in Canada otherwise than in a supply tank of a vehicle,

(iv) the person delivers marketable natural gas or non-marketable natural gas to another person in a listed province,

(v) the person measures another person's consumption or usage, in a listed province, of marketable natural gas and

(A) the measurement is done on a regular basis and for the purpose of billing the other person or providing the other person's billing information to a third party, and

(B) the marketable natural gas is delivered by way of a distribution system,

(vi) the person is a prescribed person, a person of a prescribed class or a person meeting prescribed conditions, or

(vii) prescribed circumstances exist or prescribed conditions are met; and

(b) a type of fuel other than marketable natural gas or non-marketable natural gas, if

(i) the person produces fuel of that type in a listed province,

(ii) the person is a prescribed person, a person of a prescribed class or a person meeting prescribed conditions, or

(iii) prescribed circumstances exist or prescribed conditions are met.

Timing of application

(2) A person that is required under subsection (1) to be registered as a distributor in respect of a type of fuel must apply to the Minister for registration before

(a) unless paragraph (b) or (c) applies, the later of commencement day and

(i) if the type of fuel is marketable natural gas or non-marketable natural gas, the day that is the earliest of

(A) the day on which the person first produces marketable natural gas or non-marketable natural gas in a listed province,

(B) the day on which the person first imports marketable natural gas or non-marketable natural gas in a listed province otherwise than in a supply tank of a vehicle,

(C) the day on which the person first brings marketable natural gas or non-marketable natural gas into a listed province from a place in Canada otherwise than in a supply tank of a vehicle,

(D) the day on which the person first delivers marketable natural gas or non-marketable natural gas to another person in a listed province, and

(E) the day on which the person first measures another person's consumption or usage of marketable natural gas in a listed province if

(I) the measurement is for the purpose of billing the other person or providing the other person's billing information to a third party, and

(II) the marketable natural gas is delivered by way of a distribution system, and

(ii) if the fuel is not marketable natural gas and is not non-marketable natural gas, the day on which the person first produces fuel of that type in a listed province;

(b) if the person is a person prescribed under either subparagraph (1)(a)(vi) or (b)(ii), a person of a class prescribed under either of those subparagraphs or a person meeting conditions prescribed under either of those subparagraphs, the prescribed time; or

Distributor — registration permitted

(3) A person that is not required under subsection (1) to be registered as a distributor in respect of a type of fuel (other than marketable natural gas or non-marketable natural gas) may apply to the Minister to be registered, for the purposes of this Part, as a distributor in respect of that type of fuel if

(a) the person carries on the business of selling, delivering or distributing fuel of that type and, in the ordinary course of that business, delivers fuel of that type in a listed province

(i) to another person for the purpose of resale, in the ordinary course of business, by the other person,

(ii) to a registered distributor in respect of that type of fuel,

(iii) to a farmer at a farm if the fuel is qualifying farming fuel,

(iv) to a registered specified air carrier in respect of that type of fuel if the fuel is qualifying aviation fuel,

(v) to a registered specified marine carrier in respect of that type of fuel if the fuel is qualifying marine fuel,

(vi) to a registered specified rail carrier in respect of that type of fuel if the fuel is qualifying rail fuel,

(vii) to a registered emitter at a covered facility of the registered emitter,

(viii) to a registered user in respect of that type of fuel, or

(ix) to another person if the fuel is, in accordance with the Ships' Stores Regulations, designated as ships' stores for use on board a conveyance of a class prescribed under those regulations;

(b) the person carries on the business of selling, delivering or distributing fuel of that type and, in the ordinary course of that business, removes fuel of that type from a listed province;

(d) prescribed circumstances exist or prescribed conditions are met.

Non-application

(4) This section does not apply

(a) to a person in respect of a type of fuel if the person is, or is required to be, registered as

(i) a specified air carrier or air carrier in respect of that type of fuel,

(ii) a specified marine carrier or marine carrier in respect of that type of fuel, or

(iii) a specified rail carrier or rail carrier in respect of that type of fuel;

(b) to a prescribed person, a person of a prescribed class or a person meeting prescribed conditions; or

Importer — registration required

56 (1) A person is required to be registered, for the purposes of this Part, as an importer in respect of a type of fuel if

(a) the person imports fuel of that type — other than fuel that is imported in a supply tank of a vehicle or fuel that is gasoline, kerosene, light fuel oil or propane in a quantity that does not exceed 200 L — at a location in a listed province;

(b) the person brings fuel of that type — other than fuel that is brought in a supply tank of a vehicle or fuel that is gasoline, kerosene, light fuel oil or propane in a quantity that does not exceed 200 L — into a listed province from a place in Canada;

(d) prescribed circumstances exist or prescribed conditions are met.

Timing of application

(2) A person that is required under subsection (1) to be registered as an importer in respect of a type of fuel must apply to the Minister for registration before

(a) unless paragraph (b) or (c) applies, the later of commencement day and the earlier of

(i) the day on which the person first imports fuel of that type — other than fuel that is imported in a supply tank of a vehicle or fuel that is gasoline, kerosene, light fuel oil or propane in a quantity that does not exceed 200 L — at a location in a listed province, and

(ii) the day on which the person first brings fuel of that type — other than fuel that is brought in a supply tank of a vehicle or fuel that is gasoline, kerosene, light fuel oil or propane in a quantity that does not exceed 200 L — into a listed province from a place in Canada;

(b) if the person is a person prescribed under paragraph (1)(c), a person of a class prescribed under that paragraph or a person meeting conditions prescribed under that paragraph, the prescribed time; or

Importer — registration permitted

(3) A person that is not required under subsection (1) to be registered as an importer in respect of a type of fuel, may apply to the Minister to be registered, for the purposes of this Part, as an importer in respect of that type of fuel if

(a) the person is an interjurisdictional rail carrier in respect of that type of fuel and

(i) the person, in the ordinary course of a business,

(A) imports, in a supply tank of a locomotive, fuel of that type at a location in a listed province,

(B) brings, in a supply tank of a locomotive, fuel of that type into a listed province from a place in Canada, or

(ii) the person is not required to be registered under Division 4 of this Part, in respect of that type of fuel, as a specified air carrier, an air carrier, a specified marine carrier, a marine carrier, a specified rail carrier or a rail carrier;

(b) the person is a prescribed person, a person of a prescribed class or a person meeting prescribed conditions; or

Non-application

(4) This section does not apply

(a) to a person in respect of a type of fuel if the person is, or is required to be, registered as

(i) a distributor in respect of that type of fuel,

(ii) as a specified air carrier or air carrier in respect of that type of fuel,

(iii) a specified marine carrier or marine carrier in respect of that type of fuel, or

(iv) a specified rail carrier or rail carrier in respect of that type of fuel;

(b) to a prescribed person, a person of a prescribed class or a person meeting prescribed conditions; or

Emitter — registration permitted

57 (1) A person may apply to the Minister to be registered, for the purposes of this Part, as an emitter if

(a) the person is, for the purposes Part 2, a person responsible for a covered facility and the person

(i) has been issued a covered facility certificate in respect of the covered facility by the Minister of the Environment under section 171, and

(ii) is not a prescribed person, a person of a prescribed class or a person meeting prescribed conditions;

(b) the person is a prescribed person, a person of a prescribed class or a person meeting prescribed conditions, in respect of a prescribed facility or property, a facility or property of a prescribed class or a facility or property meeting prescribed conditions; or

Non-application

(2) This section does not apply

(a) to a prescribed person, a person of a prescribed class or a person meeting prescribed conditions; or

(b) if prescribed circumstances exist or prescribed conditions are met.

User of fuel — registration permitted

58 (1) A person that is not registered as a distributor in respect of a type of fuel and is not required to be so registered may apply to the Minister to be registered, for the purposes of this Part, as a user in respect of that type of fuel if

(a) the person uses, in the ordinary course of business of the person, fuel of that type in a non-covered activity in a listed province;

(b) the person is a prescribed person, a person of a prescribed class or a person meeting prescribed conditions; or

Non-application

(2) This section does not apply

(a) to a prescribed person, a person of a prescribed class or a person meeting prescribed conditions; or

(b) if prescribed circumstances exist or prescribed conditions are met.

User of combustible waste — registration required

59 (1) A person is required to be registered, for the purposes of this Part, as a user in respect of combustible waste if

(a) the person burns combustible waste in a listed province for the purpose of producing heat or energy;

(b) the person is a prescribed person, a person of a prescribed class or a person meeting prescribed conditions; or

Timing of application

(2) A person that is required under subsection (1) to be registered as a user in respect of combustible waste must apply to the Minister for registration

(a) unless paragraph (b) applies, before the later of commencement day and the day on which the person first burns combustible waste in a listed province for the purpose of producing heat or energy; or

(b) if prescribed circumstances exist or prescribed conditions are met, before the prescribed time.

Non-application

(3) This section does not apply

(a) to a prescribed person, a person of a prescribed class or a person meeting prescribed conditions; or

(b) if prescribed circumstances exist or prescribed conditions are met.

Air carrier — registration required

60 (1) A person (other than a registered emitter) that is an interjurisdictional air carrier in respect of a type of fuel that is a qualifying aviation fuel is required to be registered at a particular time for the purposes of this Part

(a) unless paragraph (b) applies, as an air carrier in respect of that type of fuel if it can reasonably be expected that, during the calendar year that includes the particular time, all or substantially all of the fuel of that type used by the person will be used in vehicles and the greatest proportion of the fuel used in vehicles will be used in aircraft; or

(b) as either a specified air carrier or an air carrier in respect of that type of fuel if

(i) during the calendar year that includes the particular time, all or substantially all of the fuel of that type used by the person is used in vehicles and the greatest proportion of the fuel used in vehicles is used in aircraft, and

(ii) the person is a qualifying interjurisdictional air carrier in respect of that type of fuel throughout the calendar year that includes the particular time.

Qualifying interjurisdictional air carrier — previous year journeys

(2) For the purposes of subparagraph (1)(b)(ii), an interjurisdictional air carrier in respect of a type of fuel that is a qualifying aviation fuel is a qualifying interjurisdictional air carrier in respect of fuel of that type throughout a particular calendar year if the interjurisdictional air carrier completed journeys by aircraft in the calendar year that preceded the particular calendar year and the amount determined by the following formula is greater than, or equal to, 0.5:

A/B

where

A is the total of all quantities, each of which is a quantity of fuel of that type that was used by the interjurisdictional air carrier in an excluded air journey during the preceding calendar year; and

B is the total of all quantities, each of which is a quantity of fuel of that type that was used by the interjurisdictional air carrier in a covered air journey or an excluded air journey during the preceding calendar year.

Qualifying interjurisdictional air carrier — no previous year journeys

(3) For the purposes of subparagraph (1)(b)(ii), a person that is, or that can reasonably be expected to be, an interjurisdictional air carrier in respect of a type of fuel that is a qualifying aviation fuel is a qualifying interjurisdictional air carrier in respect of fuel of that type throughout a particular calendar year if the person did not complete journeys by aircraft in the calendar year that preceded the particular calendar year and the amount determined by the following formula is greater than, or equal to, 0.5:

A/B

where

A is the total of all quantities, each of which is a quantity of fuel of that type that can reasonably be expected to be used by the person in an excluded air journey during the particular calendar year; and

B is the total of all quantities, each of which is a quantity of fuel of that type that can reasonably be expected to be used by the person in a covered air journey or an excluded air journey during the particular calendar year.

Air carrier — registration required

(4) A person is required to be registered for the purposes of this Part

(a) as a specified air carrier in respect of a type of fuel if

(i) the person is a prescribed person, a person of a prescribed class or a person meeting prescribed conditions, or

(ii) prescribed circumstances exist or prescribed conditions are met; or

(b) as an air carrier in respect of a type of fuel if

(i) the person is a prescribed person, a person of a prescribed class or a person meeting prescribed conditions, or

(ii) prescribed circumstances exist or prescribed conditions are met.

Air carrier — registration permitted

(5) A person may apply to the Minister to be registered for the purposes of this Part

(a) as a specified air carrier in respect of a type of fuel if

(i) the person is a prescribed person, a person of a prescribed class or a person meeting prescribed conditions, or

(ii) prescribed circumstances exist or prescribed conditions are met; or

(b) as an air carrier in respect of a type of fuel if

(i) the person is a prescribed person, a person of a prescribed class or a person meeting prescribed conditions, or

(ii) prescribed circumstances exist or prescribed conditions are met.

Timing of application

(6) A person that is required under this section to be registered as a specified air carrier or air carrier in respect of a type of fuel must apply to the Minister for registration

(a) unless paragraph (b) applies, before the later of commencement day and the day that the person first meets the conditions under subsection (1); or

(b) if prescribed circumstances exist or prescribed conditions are met, before the prescribed time.

Non-application

(7) This section does not apply

(a) to a prescribed person, a person of a prescribed class or a person meeting prescribed conditions; or

(b) if prescribed circumstances exist or prescribed conditions are met.

Marine carrier — registration required

61 (1) A person (other than a registered emitter) that is an interjurisdictional marine carrier in respect of a type of fuel that is a qualifying marine fuel is required to be registered at a particular time for the purposes of this Part

(a) unless paragraph (b) applies, as a marine carrier in respect of that type of fuel if it can reasonably be expected that, during the calendar year that includes the particular time, all or substantially all of the fuel of that type used by the person will be used in vehicles and the greatest proportion of the fuel used in vehicles will be used in vessels; or

(b) as either a specified marine carrier or a marine carrier in respect of that type of fuel if

(ii) the person is a qualifying interjurisdictional marine carrier in respect of that type of fuel throughout the calendar year that includes the particular time.

Qualifying interjurisdictional marine carrier — previous year journeys

(2) For the purposes of subparagraph (1)(b)(ii), an interjurisdictional marine carrier in respect of a type of fuel that is a qualifying marine fuel is a qualifying interjurisdictional marine carrier in respect of that type of fuel throughout a particular calendar year if the interjurisdictional marine carrier completed journeys by vessel in the calendar year that preceded the particular calendar year and the amount determined by the following formula is greater than, or equal to, 0.5:

A/B

where

A is the total of all quantities, each of which is a quantity of fuel of that type that is used by the interjurisdictional marine carrier in an excluded marine journey during the preceding calendar year; and

B is the total of all quantities, each of which is a quantity of fuel of that type that is used by the interjurisdictional marine carrier in a covered marine journey or an excluded marine journey during the preceding calendar year.

Qualifying interjurisdictional marine carrier — no previous year journeys

(3) For the purposes of subparagraph (1)(b)(ii), a person that is, or that can reasonably be expected to be, an interjurisdictional marine carrier in respect of a type of fuel that is a qualifying marine fuel is a qualifying interjurisdictional marine carrier in respect of fuel of that type throughout a particular calendar year if the person did not complete journeys by vessel in the calendar year that preceded the particular calendar year and the amount determined by the following formula is greater than, or equal to, 0.5:

A/B

where

A is the total of all quantities, each of which is a quantity of fuel of that type that can reasonably be expected to be used by the person in an excluded marine journey during the particular calendar year; and

B is the total of all quantities, each of which is a quantity of fuel of that type that can reasonably be expected to be used by the person in a covered marine journey or an excluded marine journey during the particular calendar year.

Marine carrier — registration required

(4) A person is required to be registered for the purposes of this Part

(a) as a specified marine carrier in respect of a type of fuel if

(i) the person is a prescribed person, a person of a prescribed class or a person meeting prescribed conditions, or

(ii) prescribed circumstances exist or prescribed conditions are met; or

(b) as a marine carrier in respect of a type of fuel if

(i) the person is a prescribed person, a person of a prescribed class or a person meeting prescribed conditions, or

(ii) prescribed circumstances exist or prescribed conditions are met.

Marine carrier — registration permitted

(5) A person may apply to the Minister to be registered for the purposes of this Part

(a) as a specified marine carrier in respect of a type of fuel if

(i) the person is a prescribed person, a person of a prescribed class or a person meeting prescribed conditions, or

(ii) prescribed circumstances exist or prescribed conditions are met; or

(b) as a marine carrier in respect of a type of fuel if

(i) the person is a prescribed person, a person of a prescribed class or a person meeting prescribed conditions, or

(ii) prescribed circumstances exist or prescribed conditions are met.

Timing of application

(6) A person that is required under this section to be registered as a specified marine carrier or marine carrier in respect of a type of fuel must apply to the Minister for registration

(a) unless paragraph (b) applies, before the later of commencement day and the day that the person first meets the conditions under subsection (1); or

(b) if prescribed circumstances exist or prescribed conditions are met, before the prescribed time.

Non-application

(7) This section does not apply

(a) to a prescribed person, a person of a prescribed class or a person meeting prescribed conditions; or

(b) if prescribed circumstances exist or prescribed conditions are met.

Rail carrier — registration required

62 (1) A person (other than a registered emitter) that is an interjurisdictional rail carrier in respect of a type of fuel that is a qualifying rail fuel is required to be registered at a particular time for the purposes of this Part, if it can reasonably be expected that, during the calendar year that includes the particular time, all or substantially all of the fuel of that type used by the person will be used in vehicles and the greatest proportion of the fuel used in vehicles will be used in locomotives

(a) unless paragraph (b) applies, as a rail carrier in respect of that type of fuel; or

(b) as either a specified rail carrier or rail carrier in respect of that type of fuel if the interjurisdictional rail carrier is a prescribed person, a person of a prescribed class or a person meeting prescribed conditions.

Rail carrier — registration required

(2) A person is required to be registered for the purposes of this Part

(a) as a specified rail carrier in respect of a type of fuel if

(i) the person is a prescribed person, a person of a prescribed class or a person meeting prescribed conditions, or

(ii) prescribed circumstances exist or prescribed conditions are met; or

(b) as a rail carrier in respect of a type of fuel if

(i) the person is a prescribed person, a person of a prescribed class or a person meeting prescribed conditions, or

(ii) prescribed circumstances exist or prescribed conditions are met.

Rail carrier — registration permitted

(3) A person may apply to the Minister to be registered for the purposes of this Part

(a) as a specified rail carrier in respect of a type of fuel if

(i) the person is a prescribed person, a person of a prescribed class or a person meeting prescribed conditions, or

(ii) prescribed circumstances exist or prescribed conditions are met; or

(b) as a rail carrier in respect of a type of fuel if

(i) the person is a prescribed person, a person of a prescribed class or a person meeting prescribed conditions, or

(ii) prescribed circumstances exist or prescribed conditions are met.

Timing of application

(4) A person that is required under this section to be registered as a specified rail carrier or rail carrier in respect of a type of fuel must apply to the Minister for registration

(a) unless paragraph (b) applies, before the later of commencement day and the day that the person first meets the conditions under subsection (1); or

(b) if prescribed circumstances exist or prescribed conditions are met, before the prescribed time.

Non-application

(5) This section does not apply

(a) to a prescribed person, a person of a prescribed class or a person meeting prescribed conditions; or

(b) if prescribed circumstances exist or prescribed conditions are met.

Road carrier — registration required

63 (1) A person is required to be registered, for the purposes of this Part, as a road carrier in respect of a type of fuel that is a qualifying motive fuel if the person uses fuel of that type in a specified commercial vehicle in a listed province unless the person is, or is required to be, registered, for the purposes of this Part as

(a) a distributor in respect of that type of fuel;

(b) a specified air carrier or air carrier in respect of that type of fuel;

(d) a specified rail carrier or rail carrier in respect of that type of fuel.

Road carrier — registration required

(2) A person is required to be registered for the purposes of this Part as a road carrier in respect of a type of fuel if

(a) the person is a prescribed person, a person of a prescribed class or a person meeting prescribed conditions; or

(b) prescribed circumstances exist or prescribed conditions are met.

Road carrier — registration permitted

(3) A person may apply to the Minister to be registered for the purposes of this Part as a road carrier in respect of a type of fuel if

(a) the person is a prescribed person, a person of a prescribed class or a person meeting prescribed conditions; or

(b) prescribed circumstances exist or prescribed conditions are met.

Timing of application

(4) A person that is required under this section to be registered as a road carrier in respect of a type of fuel must apply to the Minister for registration

(a) unless paragraph (b) applies, before the later of commencement day and the day on which the person first uses fuel of that type in a specified commercial vehicle in a listed province; or

(b) if prescribed circumstances exist or prescribed conditions are met, before the prescribed time.

Non-application

(5) This section does not apply

(a) to a prescribed person, a person of a prescribed class or a person meeting prescribed conditions; or

(b) if prescribed circumstances exist or prescribed conditions are met.

Application for registration

64 (1) An application for registration under this Division is to be made in prescribed form containing prescribed information and is to be filed with the Minister in prescribed manner.

Notification

(2) The Minister may register any person that applies for registration and, if the Minister does so, the Minister must notify the person of the registration number assigned to the person for the purposes of this Part and of the effective date of the registration.

Cancellation of registration

65 (1) The Minister may, after giving a person that is registered under this Division reasonable written notice, cancel a registration of the person under this Division if the Minister is satisfied that the registration is not required for the purposes of this Part.

Request for cancellation

(2) If a person files with the Minister in prescribed manner a request, in prescribed form containing prescribed information, to have a registration of the person cancelled, the Minister must cancel the registration of the person if the Minister is satisfied that the registration is not required for the purposes of this Part.

Cancellation in prescribed circumstances

(3) The Minister must cancel a registration of a person under this Division in prescribed circumstances.

Notice of cancellation

(4) If the Minister cancels a registration of a person under this Division, the Minister must notify the person of the cancellation and the effective date of the cancellation.

Cancellation — distributor

(5) If a person is registered as a distributor in respect of a type of fuel, the Minister must cancel that registration when registering the person as

(a) a specified air carrier or air carrier in respect of that type of fuel;

(b) a specified marine carrier or marine carrier in respect of that type of fuel; or

Cancellation — importer

(6) If a person is registered as an importer in respect of a type of fuel, the Minister must cancel that registration when registering the person as

(a) a distributor in respect of that type of fuel;

(b) a specified air carrier or air carrier in respect of that type of fuel;

(d) a specified rail carrier or rail carrier in respect of that type of fuel;

(e) an emitter; or

(f) a user in respect of that type of fuel.

Cancellation — user

(7) If a person is registered as a user in respect of a type of fuel, the Minister must cancel that registration when registering the person as a distributor in respect of that type of fuel.

Cancellation — road carrier

(8) If a person is registered as a road carrier in respect of a type of fuel, the Minister must cancel that registration when registering the person as

(a) a distributor in respect of that type of fuel;

(b) a specified air carrier or air carrier in respect of that type of fuel;

(d) a specified rail carrier or rail carrier in respect of that type of fuel.

Cancellation — carrier

(9) If a person is registered, in respect of a type of fuel, as a specified air carrier, an air carrier, a specified marine carrier, a marine carrier, a specified rail carrier or a rail carrier, the Minister must, unless prescribed circumstances exist or prescribed conditions are met, cancel whichever of those registrations applies when registering the person as

(a) a specified air carrier or air carrier in respect of that type of fuel;

(b) a specified marine carrier or marine carrier in respect of that type of fuel;

(d) an emitter.

Security

66 (1) For the purposes of this Part, the Minister may require a person that applies to be registered, or that is required to be registered, under this Division to give and maintain security, in an amount determined by the Minister and subject to any terms and conditions that the Minister may specify, for the payment of any amount that is or may become payable by the person under this Part.

Failure to comply

(2) If, at any time, a person referred to in subsection (1) fails to give or maintain security in an amount satisfactory to the Minister, the Minister may retain as security, out of any amount that may be or may become payable under this Part to the person, an amount not exceeding the amount determined by the formula

A – B

where

A is the amount of security that would, at that time, be satisfactory to the Minister if it were given by the person in accordance with subsection (1); and

B is the amount of security, if any, given and maintained by the person in accordance with subsection (1).

Amount deemed paid

(3) The amount retained under subsection (2) is deemed to have been paid, at the time referred to in that subsection, by the Minister to the person, and to have been given, immediately after that time, by the person as security in accordance with subsection (1).

Registrations not statutory instruments

67 For greater certainty, a registration issued under this Part is not a statutory instrument for the purposes of the Statutory Instruments Act.

SUBDIVISION B

Reporting Periods, Returns and Requirement to Pay

Definition of calendar quarter

68 (1) For the purposes of this section, calendar quarter means a period of three months beginning on the first day of January, April, July or October.

Reporting periods

(2) For the purposes of this Part, a reporting period of a person is

(a) unless paragraph (b) or (c) applies, a calendar month;

(b) unless paragraph (c) applies, if the person is registered as a road carrier in respect of any type of fuel and is not otherwise registered, or required to be registered, under this Division, a calendar quarter; or

(i) the person is a prescribed person, a person of a prescribed class or a person meeting prescribed conditions, or

(ii) prescribed circumstances exist or prescribed conditions are met.

Reporting period — registration or cancellation

(3) Despite subsection (2), if at a particular time the Minister registers a person, or cancels a registration of a person, under this Division

(a) the particular reporting period of the person that includes the particular time ends on the day that includes the particular time; and

(b) a reporting period of the person begins on the day following the day that includes the particular time and ends on the day that is

(i) unless subparagraph (ii) applies, the last day of the month that includes the particular time, or

(ii) the last day of the calendar quarter that includes the particular time if, immediately after the particular time, the person is registered as a road carrier in respect of any type of fuel and is not otherwise registered, or required to be registered, under this Division.

Filing required

69 (1) Every person that is registered or required to be registered under this Division must file a return with the Minister for each reporting period of the person. The return is to be filed not later than the last day of the first month after the reporting period.

Filing required — non-registered persons

(2) Every person that is not registered and not required to be registered under this Division must file a return with the Minister for each reporting period of the person in which a charge (other than a charge under subsection 20(3)) becomes payable by the person. The return is to be filed not later than the last day of the first month after the reporting period.

Returns — regulations

(3) If prescribed circumstances exist or prescribed conditions are met, a return for a reporting period that is a prescribed reporting period or a reporting period meeting prescribed conditions must, despite subsections (1) and (2), be filed in accordance with prescribed rules.

Filing not required — regulations

(4) If prescribed circumstances exist or prescribed conditions are met, a return for a reporting period that is a prescribed reporting period or a reporting period meeting prescribed conditions, despite subsections (1) and (2), is not required to be filed.

Form and content

70 Every return required to be filed under section 69 is to be made in prescribed form containing prescribed information and is to be filed in prescribed manner.

Net charge — obligation

71 (1) Every person that is required to file a return under section 69 must, in the return, determine the net charge for the reporting period of the person for which the return is required to be filed.

Determination of net charge

(2) Subject to this Part, the net charge for a particular reporting period of a person is the amount determined by the formula

A + B

where

A is the total of all amounts, each of which is the amount determined for a listed province by the formula

C - D

where

C is the total of all amounts, each of which is

(a) a charge (other than a charge under subsection 20(3)) in respect of fuel and the listed province that becomes payable by the person in the particular reporting period,

(b) a charge in respect of combustible waste and the listed province that becomes payable by the person in the particular reporting period, or

(c) a prescribed amount, or an amount determined in prescribed manner, in respect of the listed province that is required to be added in determining the net charge for the particular reporting period of the person, and

D is the total of all amounts, each of which is

(a) an amount of a rebate (other than a rebate under section 49 or a net charge rebate under subsection (4)) in respect of the listed province payable by the Minister in respect of a reporting period and that is claimed by the person in the return under section 69 for the particular reporting period, or

(b) a prescribed amount, or an amount determined in prescribed manner, in respect of the listed province that may be deducted in determining the net charge for the particular reporting period of the person; and

B the total of all amounts, each of which is a positive or negative prescribed amount, or an amount determined in prescribed manner, for the particular reporting period of the person.

Requirement to pay

(3) If the net charge for a reporting period of a person is a positive amount, the person must pay that amount to the Receiver General on or before the day on or before which the return for the reporting period is required to be filed.

Net charge rebate

(4) If the net charge for a reporting period of a person is a negative amount, the person may claim in the return filed under section 69 for that reporting period the amount of that net charge as a net charge rebate for the reporting period payable to the person by the Minister. The Minister must pay the net charge rebate to the person with all due dispatch after the return is filed.

Restriction — net charge rebate

(5) The Minister is not required to pay a net charge rebate under subsection (4) to a person unless the Minister is satisfied that all information, that is contact information or that is information relating to the identification and business activities of the person, to be given by the person on any application made by the person under this Division for registration has been provided and is accurate.

Interest on net charge rebate

(6) If a net charge rebate for a reporting period of a person is paid to the person under subsection (4), interest at the prescribed rate is to be paid to the person on the net charge rebate for the period beginning on the day that is 30 days after the later of the day the return in which the net charge rebate is claimed is filed with the Minister and the day following the last day of the reporting period and ending on the day the net charge rebate is paid.

Overpayment of rebate or interest

72 If an amount is paid to, or applied to a liability of, a person as a rebate, or as interest, under this Part and the person is not entitled to the rebate or interest, as the case may be, or the amount paid or applied exceeds the rebate or interest, as the case may be, to which the person is entitled, the person must pay to the Receiver General an amount equal to the rebate, interest or excess, as the case may be, on the day the rebate, interest or excess, as the case may be, is paid to, or applied to a liability of, the person.

Reportable amount

73 (1) A person that is required to file, under section 69, a return for a reporting period of the person, must report in that return

(a) the amount determined for each listed province that is included in the determination of A in the formula in subsection 71(2) for the reporting period of the person; and

(b) an amount that is a prescribed amount or an amount determined in prescribed manner.

Failure to report amounts

(2) In addition to any other penalty under this Part, every person that fails to report an amount referred to in subsection (1) when and as required in a return required to be filed under section 69, or that misstates such an amount in the return, is liable to a penalty, for each failure or misstatement, equal to 5% of the absolute value of the difference between the amount and

(a) if the person failed to report the amount as and when required, zero; and

(b) if the person misstated the amount, the amount that was reported by the person in the return.

Division 5

Miscellaneous

SUBDIVISION A

Trustees, Receivers and Personal Representatives

Definitions

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

bankrupt has the same meaning as in section 2 of the Bankruptcy and Insolvency Act. (failli)

business includes a part of a business. (entreprise)

receiver means a person that

(a) under the authority of a debenture, bond or other debt security, of a court order or of an Act of Parliament or of the legislature of a province, is empowered to operate or manage a business or a property of another person;

(b) is appointed by a trustee under a trust deed in respect of a debt security to exercise the authority of the trustee to manage or operate a business or a property of the debtor under the debt security;

(c) is appointed by a bank or an authorized foreign bank, as those terms are defined in section 2 of the Bank Act, to act as an agent or mandatary of the bank in the exercise of the authority of the bank under subsection 426(3) of that Act in respect of property of another person;

(d) is appointed as a liquidator to liquidate the assets of a corporation or to wind up the affairs of a corporation; or

(e) is appointed as a committee, guardian, curator, tutor or mandatary in case of incapacity with the authority to manage and care for the affairs and assets of an individual who is incapable of managing those affairs and assets.

It includes a person that is appointed to exercise the authority of a creditor under a debenture, bond or other debt security to operate or manage a business or a property of another person, but, if a person is appointed to exercise the authority of a creditor under a debenture, bond or other debt security to operate or manage a business or a property of another person, it does not include that creditor. (séquestre)

relevant assets of a receiver means

(a) if the receiver's authority relates to all the properties, businesses, affairs and assets of a person, all those properties, businesses, affairs and assets; and

(b) if the receiver's authority relates to only part of the properties, businesses, affairs or assets of a person, that part of the properties, businesses, affairs or assets. (actif pertinent)

representative means a person, other than a trustee in bankruptcy or a receiver, that is administering, winding up, controlling or otherwise dealing with any property, business, estate or succession of another person. (représentant)

Trustee in bankruptcy — obligations

(2) For the purposes of this Part, if on a particular day a person becomes a bankrupt,

(a) the trustee in bankruptcy, and not the person, is liable for the payment of any amount (other than an amount that relates solely to activities in which the person begins to engage on or after the particular day and to which the bankruptcy does not relate) that is required to be paid by the person under this Part, during the period beginning on the day immediately after the day on which the trustee became the trustee in bankruptcy of the person and ending on the day on which the discharge of the trustee is granted under the Bankruptcy and Insolvency Act, except that

(i) the trustee is liable for the payment of any amount that is required to be paid by the person under this Part after the particular day in respect of reporting periods that ended on or before the particular day but only to the extent of the property of the person in possession of the trustee available to satisfy the liability,

(ii) the trustee is not liable for the payment of any amount for which a receiver is liable under subsection (3), and

(iii) the payment by the person of an amount in respect of the liability discharges the liability of the trustee to the extent of that amount;

(b) if, on the particular day the person is registered under Division 4 of this Part, the registration continues in relation to the activities of the person to which the bankruptcy relates as though the trustee in bankruptcy were registered under that Division in the same capacity as the person in respect of those activities and ceases to apply to the activities of the person in which the person begins to engage on or after the particular day and to which the bankruptcy does not relate;

(c) the reporting periods of the person begin and end on the day on which they would have begun and ended if the bankruptcy had not occurred, except that

(i) the reporting period of the person during which the person becomes a bankrupt ends on the particular day and a new reporting period of the person in relation to the activities of the person to which the bankruptcy relates begins on the day immediately after the particular day, and

(ii) the reporting period of the person, in relation to the activities of the person to which the bankruptcy relates, during which the trustee in bankruptcy is discharged under the Bankruptcy and Insolvency Act ends on the day on which the discharge is granted;

(d) subject to paragraph (f), the trustee in bankruptcy must file with the Minister in the prescribed form and manner all returns in respect of the activities of the person to which the bankruptcy relates for the reporting periods of the person ending in the period beginning on the day immediately after the particular day and ending on the day on which the discharge of the trustee is granted under the Bankruptcy and Insolvency Act and that are required under this Part to be filed by the person, as if those activities were the only activities of the person;

(e) subject to paragraph (f), if the person has not on or before the particular day filed a return required under this Part to be filed by the person for a reporting period of the person ending on or before the particular day, the trustee in bankruptcy must, unless the Minister waives in writing the requirement for the trustee to file the return, file with the Minister in the prescribed form and manner a return for that reporting period of the person; and

(f) if there is a receiver with authority in respect of any business, property, affairs or assets of the person, the trustee in bankruptcy is not required to include in any return any information that the receiver is required under subsection (3) to include in a return.

Receiver's obligations

(3) For the purposes of this Part, if on a particular day a receiver is vested with authority to manage, operate, liquidate or wind up any business or property, or to manage and care for the affairs and assets, of a person,

(a) if the relevant assets of the receiver are a part and not all of the person's businesses, properties, affairs or assets, the relevant assets of the receiver are deemed to be, throughout the period during which the receiver is acting as receiver of the person, separate from the remainder of the businesses, properties, affairs or assets of the person as though the relevant assets were businesses, properties, affairs or assets, as the case may be, of a separate person;

(b) the person and the receiver are jointly and severally, or solidarily, liable for the payment of any amount that is required to be paid by the person under this Part before or during the period during which the receiver is acting as receiver of the person to the extent that the amount can reasonably be considered to relate to the relevant assets of the receiver or to the businesses, properties, affairs or assets of the person that would have been the relevant assets of the receiver if the receiver had been acting as receiver of the person at the time the amount became payable except that

(i) the receiver is liable for the payment of any amount that is required to be paid by the person under this Part before that period only to the extent of the property of the person in possession or under the control and management of the receiver after

(A) satisfying the claims of creditors whose claims ranked, on the particular day, in priority to the claim of the Crown in respect of the amount, and

(B) paying any amounts that the receiver is required to pay to a trustee in bankruptcy of the person,

(ii) the person is not liable for the payment of any amount payable by the receiver, and

(iii) the payment by the person or the receiver of an amount in respect of the liability discharges the joint and several, or solidary, liability to the extent of that amount;

(c) the reporting periods of the person begin and end on the day on which they would have begun and ended if the vesting had not occurred, except that

(i) the reporting period of the person, in relation to the relevant assets of the receiver, during which the receiver begins to act as receiver of the person, ends on the particular day and a new reporting period of the person in relation to the relevant assets begins on the day immediately after the particular day, and

(ii) the reporting period of the person, in relation to the relevant assets, during which the receiver ceases to act as receiver of the person, ends on the day on which the receiver ceases to act as receiver of the person;

(d) the receiver must file with the Minister in the prescribed form and manner all returns in respect of the relevant assets of the receiver for reporting periods ending in the period during which the receiver is acting as receiver and that are required under this Part to be made by the person, as if the relevant assets were the only businesses, properties, affairs and assets of the person; and

(e) if the person has not on or before the particular day filed a return required under this Part to be filed by the person for a reporting period of the person ending on or before the particular day, the receiver must, unless the Minister waives in writing the requirement for the receiver to file the return, file with the Minister in the prescribed form and manner a return for that reporting period that relates to the businesses, properties, affairs or assets of the person that would have been the relevant assets of the receiver if the receiver had been acting as receiver of the person during that reporting period.

Certificates for receivers and representatives

(4) Every receiver and representative that controls property of another person that is required to pay any amount under this Part must, before distributing the property to any person, obtain a certificate from the Minister certifying that the following amounts have been paid or that security for the payment of them has, in accordance with this Part, been accepted by the Minister:

(a) all amounts that are payable by the other person under this Part in respect of the reporting period during which the distribution is made, or any previous reporting period; and

(b) all amounts that are, or can reasonably be expected to become, payable under this Part by the representative or receiver in that capacity in respect of the reporting period during which the distribution is made, or any previous reporting period.

Liability for failure to obtain certificate

(5) Any receiver or representative that distributes property without obtaining a certificate in respect of the amounts referred to in subsection (4) is personally liable for the payment of those amounts to the extent of the value of the property so distributed.

Estate or succession of a deceased individual

75 (1) Subject to subsections 74(4) and (5) and sections 76 and 77, if an individual dies, this Part (other than section 90) applies as though the estate or succession of the individual were the individual and the individual had not died, except that

(a) the reporting period of the individual during which the individual died ends on the day the individual died; and

(b) a reporting period of the estate or succession begins on the day after the individual died and ends on the day the reporting period of the individual would have ended if the individual had not died.

Extension

(2) Despite any other provision of this Part, if the return for the reporting period referred to in paragraph (1)(a) would, in the absence of this subsection, have been required to be filed earlier than the particular day that is the last day of the third month after the month in which the individual died, that return is required to be filed not later than the particular day and any amount payable under this Part in respect of that reporting period is payable to the Receiver General on the particular day.

Definitions

76 (1) The following definitions apply in this section and in section 77.

trust includes the estate or succession of a deceased individual. (fiducie)

trustee includes the personal representative of a deceased individual, but does not include a receiver as defined in subsection 74(1). (fiduciaire)

Trustee's liability

(2) Subject to subsection (3), each trustee of a trust is liable to satisfy every obligation imposed on the trust under this Part, whether the obligation was imposed during or before the period during which the trustee acts as trustee of the trust, but the satisfaction of an obligation of a trust by one of the trustees of the trust discharges the liability of all other trustees of the trust to satisfy that obligation.

Joint and several or solidary liability

(3) A trustee of a trust is jointly and severally, or solidarily, liable with the trust and each of the other trustees, if any, for the payment of all amounts that are required to be paid by the trust under this Part before or during the period during which the trustee acts as trustee of the trust except that

(a) the trustee is liable for the payment of amounts that are required to be paid by the trust under this Part before the period only to the extent of the property of the trust under the control of the trustee; and

(b) the payment by the trust or the trustee of an amount in respect of the liability discharges their liability to the extent of that amount.

Waiver

(4) The Minister may, in writing, waive the requirement for the personal representative of a deceased individual to file a return for a reporting period of the individual ending on or before the day the individual died.

Activities of a trustee

(5) For the purposes of this Part, if a person acts as trustee of a trust, anything done by the person in the person's capacity as trustee of the trust is deemed to have been done by the trust and not by the person.

Distribution by trust

77 For the purposes of this Part, if a trustee of a trust distributes, at a particular time, fuel of the trust to one or more persons, the distribution of the fuel is deemed to be a delivery of the fuel by the trust to the persons at the location at which the fuel is located at the particular time.

SUBDIVISION B

Amalgamation and Winding-up

Amalgamations

78 (1) If two or more corporations (each of which is referred to in this section as a "predecessor") are merged or amalgamated to form one corporation (in this section referred to as the "new corporation"), otherwise than as the result of the acquisition of property of one corporation by another corporation pursuant to the purchase of the property by the other corporation or as the result of the distribution of the property to the other corporation on the winding-up of the corporation, except for prescribed purposes, the new corporation is, for the purposes of this Part, deemed to be the same corporation as, and a continuation of, each predecessor.

Registration

(2) If a registration of any predecessor is not compatible under Division 4 of this Part with a registration of any other predecessor, the new corporation must apply for registration or apply for cancellation of a registration under that Division, as the case may be.

Reporting period

(3) If subsection (1) applies in respect of predecessors that are merged or amalgamated at a particular time

(a) the reporting period of each predecessor that includes the particular time ends on the day that includes the particular time; and

(b) a reporting period of the new corporation begins on the day following the day that includes the particular time and ends on the last day of the reporting period of the new corporation, if that reporting period were determined in the absence of this subsection, that includes the particular time.

Winding-up

79 (1) If at a particular time a particular corporation is wound up and not less than 90% of the issued shares of each class of the capital stock of the particular corporation were, immediately before the particular time, owned by another corporation, except for prescribed purposes, the other corporation is, for the purposes of this part, deemed to be the same corporation as, and a continuation of, the particular corporation.

Registration

(2) If a registration of the particular corporation referred to in subsection (1) is not compatible under Division 4 of this Part with a registration of the other corporation referred to in that subsection, the other corporation must apply for registration or apply for cancellation of a registration under that Division, as the case may be.

Reporting period

(3) If the other corporation referred to in subsection (1) is deemed to be the same corporation as, and a continuation of, the particular corporation referred to in that subsection

(a) the reporting period of the particular corporation that includes the particular time referred to in that subsection ends on the day that includes the particular time; and

(b) a reporting period of the other corporation begins on the day following the day that includes the particular time and ends on the last day of the reporting period of the other corporation, if that reporting period were determined in the absence of this subsection, that includes the particular time.

SUBDIVISION C

Partnerships and Joint Ventures

Partnerships

80 (1) For the purposes of this Part, anything done by a person as a member of a partnership is deemed to have been done by the partnership in the course of the partnership's activities and not to have been done by the person.

Joint and several or solidary liability

(2) A partnership and each member or former member (each of which is referred to in this subsection as the "member") of the partnership (other than a member that is a limited partner and is not a general partner) are jointly and severally, or solidarily, liable for

(a) the payment of all amounts that are required to be paid by the partnership under this Part before or during the period during which the member is a member of the partnership or, if the member was a member of the partnership at the time the partnership was dissolved, after the dissolution of the partnership, except that

(i) the member is liable for the payment of amounts that become payable before the period only to the extent of the property that is regarded as property of the partnership under the relevant laws of general application in force in a province relating to partnerships, and

(ii) the payment by the partnership or by any member of the partnership of an amount in respect of the liability discharges their liability to the extent of that amount; and

(b) all other obligations under this Part that arose before or during that period for which the partnership is liable or, if the member was a member of the partnership at the time the partnership was dissolved, the obligations that arose upon or as a consequence of the dissolution.

Joint ventures

81 (1) For the purposes of this Part, anything done by a participant in a joint venture, or by an operator of the joint venture, in the course of the activities for which the joint venture agreement was entered into are deemed to have been done by the joint venture in the course of the joint venture's activities and not to have been done by the participant or operator.

Joint and several or solidary liability

(2) A joint venture and each participant in, or operator of, the joint venture (each of which is referred to in this subsection as the "member") are jointly and severally, or solidarily, liable for

(a) the payment of all amounts that become payable by the joint venture under this Part before or during the period during which the member is a participant in, or operator of, the joint venture, except that the payment by the joint venture or by any member of an amount in respect of the liability discharges their liability to the extent of that amount; and

(b) all other obligations under this Part that arose before or during that period for which the joint venture is liable.

SUBDIVISION D

Anti-avoidance

Definitions

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

benefit means a reduction, an avoidance or a deferral of a charge or other amount payable by a person under this Part or an increase in a rebate or other amount payable to a person under this Part. (avantage)

charge-related consequences to a person means the amount of charge, net charge, rebate, net charge rebate, or other amount payable by, or payable to, the person under this Part, or any other amount that is relevant to the purposes of computing that amount. (attribut lié à la redevance)

transaction includes an arrangement or event. (opération)

General anti-avoidance provision

(2) If a transaction is an avoidance transaction, the charge-related consequences to a person must be determined as is reasonable in the circumstances in order to deny a benefit that, but for this section, would result directly or indirectly from that transaction or from a series of transactions that include that transaction.

Avoidance transaction

(3) An avoidance transaction means any transaction

(a) that, but for this section, would result directly or indirectly in a benefit, unless the transaction may reasonably be considered to have been undertaken or arranged primarily for bona fide purposes other than to obtain the benefit; or

(b) that is part of a series of transactions, which series, but for this section, would result directly or indirectly in a benefit, unless the transaction may reasonably be considered to have been undertaken or arranged primarily for bona fide purposes other than to obtain the benefit.

Provision not applicable

(4) For greater certainty, subsection (2) does not apply in respect of a transaction if it may reasonably be considered that the transaction would not result directly or indirectly in a misuse of the provisions of this Part or in an abuse having regard to the provisions of this Part (other than this section) read as a whole.

Determination of charge-related consequences

(5) Without restricting the generality of subsection (2), in determining the charge-related consequences to a person, as is reasonable in the circumstances, in order to deny a benefit that would, but for this section, result directly or indirectly from an avoidance transaction

(a) any rebate or any deduction in net charge may be allowed or disallowed, in whole or in part;

(b) any rebate or deduction referred to in paragraph (a) may, in whole or in part, be allocated to any person;

(d) the effects that would otherwise result from the application of other provisions of this Part may be ignored.

Exception

(6) Despite any other provision of this Part, the charge-related consequences to any person following the application of this section must only be determined through an assessment, reassessment or additional assessment involving the application of this section.

Definitions

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

benefit has the meaning assigned by subsection 82(1). (avantage)

rate change means any change in any rate in respect of a type of fuel, or in respect of combustible waste, for a listed province. (modification de taux)

transaction has the meaning assigned by subsection 82(1). (opération)

Rate change — transactions

(2) If

(a) a transaction, or a series of transactions, involving property is made between two or more persons, all of whom are not dealing with each other at arm's length at the time any of those transactions are made;

(b) the transaction, any of the transactions in the series of transactions or the series of transactions would in the absence of this section result directly or indirectly in a benefit to one or more of the persons involved in the transaction or series of transactions; and

(c) it may not reasonably be considered that the transaction, or the series of transactions, has been undertaken or arranged primarily for bona fide purposes other than to obtain a benefit, arising from a rate change, for one or more of the persons involved in the transaction or series of transactions;

the amount of charge, net charge, rebate, net charge rebate or other amount payable by, or payable to, any of those persons under this Part, or any other amount that is relevant for the purposes of computing that amount must be determined as is reasonable in the circumstances in order to deny the benefit to any of those persons.

Denying benefit on transactions

(3) Despite any other provision of this Part, a benefit must only be denied under subsection (2) through an assessment, reassessment or additional assessment.

Division 6

Administration and Enforcement

SUBDIVISION A

Payments

Person resident in Canada

84 For the purposes of this Division, a person is deemed to be resident in Canada at any time

(a) in the case of a corporation, if the corporation is incorporated or continued in Canada and not continued elsewhere;

(b) in the case of a partnership, a joint venture, an unincorporated society, a club, an association or an organization, or a branch thereof, if the member or participant, or a majority of the members or participants, having management and control thereof is or are resident in Canada at that time;

(c) in the case of a labour union, if it is carrying on activities as such in Canada and has a local union or branch in Canada at that time; or

(d) in the case of an individual, if the individual is deemed under any of paragraphs 250(1)(b) to (f) of the Income Tax Act to be resident in Canada at that time.

Set-off of rebates

85 If, at any time, a person files a return under section 69 in which the person reports an amount that is required to be paid under this Part by the person and the person claims a rebate under section 49 payable to the person under this Part at that time, in the return or in another return, or in a separate application filed under this Part with the return, the person is deemed to have paid at that time, and the Minister is deemed to have rebated at that time, an amount equal to the lesser of the amount required to be paid and the amount of the rebate.

Large payments

86 Every person that is required under this Part to pay an amount to the Receiver General must, if the amount is $50,000 or more, make the payment to the account of the Receiver General at

(a) a bank;

(b) a credit union;

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

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

Small amounts owing

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

Small amounts payable

(2) If, at any time, the total of all amounts payable by the Minister to a person under this Part does not exceed $2.00, the Minister may apply those amounts against any amount owing, at that time, by the person to Her Majesty in right of Canada. However, if the person, at that time, does not owe any amount to Her Majesty in right of Canada, those amounts payable are deemed to be nil.

Authority for separate returns

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

Authorization by Minister

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

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

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

Revocation of authorization

(3) The Minister may revoke an authorization if

(a) the person, in writing, requests the Minister to revoke the authorization;

(b) the person fails to comply with any condition imposed in respect of the authorization or any provision of this Part;

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

Notice of revocation

(4) If the Minister revokes an authorization, the Minister must send a notice in writing of the revocation to the person and must specify in the notice the effective date of the revocation.

Definition of electronic filing

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

Electronic filing of return

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

Mandatory filing of return by electronic transmission

(3) If a person is, in respect of a reporting period of the person, a prescribed person, a person of a prescribed class or a person meeting prescribed conditions, the person must file its return for the reporting period by way of electronic filing in the manner specified by the Minister for the person.

Deemed filing

(4) For the purposes of this Part, if a person files a return by way of electronic filing, the return is deemed to be a return made in the prescribed form filed with the Minister on the day the Minister acknowledges acceptance of it.

Execution of returns, etc.

90 A return (other than a return filed by way of electronic filing under section 89), certificate or other document made under this Part (other than an exemption certificate referred to in section 36) by a person that is not an individual must be signed on behalf of the person by an individual duly authorized to do so by the person or the governing body of the person and the following people are deemed to be so duly authorized,

(a) if the person is a corporation or an association or organization that has duly elected or appointed officers, the president, vice-president, secretary and treasurer, or other equivalent officers, of the person; and

(b) if the person is the estate or succession of a deceased individual, the personal representative of the estate or succession.

Extension of time

91 (1) The Minister may at any time extend, in writing, the time for filing a return or providing information under this Part.

Effect of extension

(2) If the Minister extends the time within which a person must file a return or provide information under subsection (1),

(a) the return must be filed, or the information must be provided, within the time so extended;

(b) any amount payable that the person is required to report in the return must be paid within the time so extended;

(c) any interest payable under section 97 on the amount referred to in paragraph (b) must be calculated as though the amount were required to be paid on the day on which the extended time expires; and

(d) any penalty payable under section 123 in respect of the return must be calculated as though the return were required to be filed on the day on which the extended time expires.

Demand for return

92 The Minister may, on demand sent by the Minister, require a person to file, within any reasonable time stipulated in the demand, a return under this Part for any period designated in the demand.

SUBDIVISION B

Administration and Officers

Minister's duty

93 The Minister must administer and enforce this Part and the Commissioner may exercise the powers and perform the duties of the Minister under this Part.

Staff

94 (1) The persons that are necessary to administer and enforce this Part are to be appointed, employed or engaged in the manner authorized by law.

Delegation of powers

(2) The Minister may authorize any person employed or engaged by the Canada Revenue Agency or who occupies a position of responsibility in the Canada Revenue Agency to exercise powers or perform duties of the Minister, including any judicial or quasi-judicial power or duty of the Minister, under this Part.

Administration of oaths

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

Inquiry

96 (1) The Minister may, for any purpose related to the administration or enforcement of this Part, authorize any person, whether or not the person is an officer of the Canada Revenue Agency, to make any inquiry that the Minister may deem necessary with reference to anything relating to the administration or enforcement of this Part.

Appointment of hearing officer

(2) If the Minister, under subsection (1), authorizes a person to make an inquiry, the Minister must forthwith apply to the Tax Court of Canada for an order appointing a hearing officer before whom the inquiry will be held.

Powers of hearing officer

(3) For the purposes of an inquiry authorized under subsection (1), a hearing officer appointed under subsection (2) in relation to the inquiry has all the powers conferred on a commissioner by sections 4 and 5 of the Inquiries Act and that may be conferred on a commissioner under section 11 of that Act.

When powers to be exercised

(4) A hearing officer appointed under subsection (2) in relation to an inquiry must exercise the powers conferred on a commissioner by section 4 of the Inquiries Act in relation to any persons that the person authorized to make the inquiry considers appropriate for the conduct of the inquiry, but the hearing officer is not to exercise the power to punish any person unless, on application by the hearing officer, a judge, including a judge of a county court, certifies that the power may be exercised in the matter disclosed in the application and the applicant has given to the person in respect of whom the power is proposed to be exercised 24 hours notice of the hearing of the application, or any shorter notice that the judge considers reasonable.

Rights of witnesses

(5) Any person who gives evidence in an inquiry authorized under subsection (1) is entitled to be represented by counsel and, on request made by the person to the Minister, to receive a transcript of that evidence.

Rights of person investigated

(6) Any person whose affairs are investigated in the course of an inquiry authorized under subsection (1) is entitled to be present and to be represented by counsel throughout the inquiry unless the hearing officer appointed under subsection (2), on application by the Minister or a person giving evidence, orders otherwise in relation to the whole or any part of the inquiry, on the ground that the presence of the person and the person's counsel, or either of them, would be prejudicial to the effective conduct of the inquiry.

SUBDIVISION C

Interest

Compound interest on amounts not paid when required

97 (1) If a person fails to pay an amount to the Receiver General as and when required under this Part, the person must pay to the Receiver General interest on the amount. The interest must be compounded daily at the prescribed rate and computed for the period that begins on the first day after the day on or before which the amount was required to be paid and that ends on the day the amount is paid.

Payment of interest that is compounded

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

Payment before specified date

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

Compound interest on amounts owed by Her Majesty

98 Interest must be compounded daily at the prescribed rate on amounts owed under this Part by Her Majesty in right of Canada to a person and computed for the period beginning on the first day after the day on which the amount is required to be paid by Her Majesty in right of Canada and ending on the day on which the amount is paid or is applied against an amount owed by the person to Her Majesty in right of Canada.

Application of interest provisions if Part amended

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

Waiving or reducing interest

100 (1) The Minister may, on or before the day that is 10 calendar years after the end of a reporting period of a person, or on application by the person on or before that day, waive, cancel or reduce any interest payable by the person under this Part on an amount that is required to be paid by the person under this Part in respect of the reporting period.

Interest where amounts waived or reduced

(2) If a person has paid an amount of interest and the Minister has waived or reduced under subsection (1) any portion of the amount, the Minister must pay interest at the prescribed rate on an amount equal to the portion of the amount that was waived or reduced beginning on the day that is 30 days after the day on which the Minister received a request in a manner satisfactory to the Minister to apply that subsection and ending on the day on which the portion is rebate to the person.

Cancellation of penalties and interest

101 If at any time a person pays all charges and amounts under section 72 payable by the person under this Part for a reporting period of the person and, immediately before that time, the total, for the reporting period, of all interest payable by the person under section 97 and penalties payable under section 123 is not more than $25, the Minister may cancel the total of the penalties and interest.

SUBDIVISION D

Financial Administration Act and Service Fees Act

Dishonoured instruments

102 For the purposes of this Part and section 155.1 of the Financial Administration Act, any charge that is payable at any time by a person under the Financial Administration Act in respect of an instrument tendered in payment or settlement of an amount that is payable under this Part is deemed to be an amount that is payable by the person at that time under this Part. In addition, Part II of the Interest and Administrative Charges Regulations does not apply to the charge and any debt under subsection 155.1(3) of the Financial Administration Act in respect of the charge is deemed to be extinguished at the time the total of the amount and any applicable interest under this Part is paid.

Service Fees Act

103 For greater certainty, the Service Fees Act does not apply to any charge or other amount payable under this Part.

SUBDIVISION E

Records and Information

Keeping records

104 (1) Every person that pays or is required to pay a charge, every person that is required under this Part to file a return and every person that makes an application for a rebate must keep all records that are necessary to enable the determination of the person's liabilities and obligations under this Part or the amount of any rebate to which the person is entitled under this Part and whether the person has complied with this Part.

Minister may specify information

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

Language and location of record

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

Electronic records

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

Exemptions

(5) The Minister may, on any terms and conditions that are acceptable to the Minister, exempt a person or a class of persons from the requirement in subsection (4).

Inadequate records

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

General period for retention

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

Objection or appeal

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

Demand by Minister

(9) If the Minister is of the opinion that it is necessary for the administration or enforcement of this Part, the Minister may, by a demand served personally or confirmed delivery service, require any person required under this Part to keep records to retain those records for any period that is specified in the demand, and the person must comply with the demand.

Permission for earlier disposal

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

Electronic funds transfer

105 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.

Requirement to provide information or record

106 (1) Despite any other provision of this Part, the Minister may, subject to subsection (2), for any purpose related to the administration or enforcement of this Part, by a notice served personally or by confirmed delivery service, require a person resident in Canada or a person that is not resident in Canada but that is engaged in activities in Canada to provide any information or record.

Unnamed persons

(2) The Minister must not impose on any person (in this section referred to as a "third party") a requirement to provide information or any record relating to one or more unnamed persons unless the Minister first obtains the authorization of a judge under subsection (3).

Judicial authorization

(3) A judge of the Federal Court may, on application by the Minister and subject to any conditions that the judge considers appropriate, authorize the Minister to impose on a third party a requirement under subsection (1) relating to an unnamed person or more than one unnamed person (in this subsection referred to as the "group") if the judge is satisfied by information on oath that

(a) the person or group is ascertainable; and

(b) the requirement is made to verify compliance by the person or persons in the group with any obligation under this Part.

Definitions

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

authorized person means a person who is engaged or employed, or who was formerly engaged or employed, by or on behalf of Her Majesty in right of Canada to assist in carrying out the provisions of this Part. (personne autorisée)

business number means the number (other than a Social Insurance Number) used by the Minister to identify a person registered for the purposes of this Part. (numéro d'entreprise)

confidential information means information of any kind and in any form that relates to one or more persons and that is

(a) obtained by or on behalf of the Minister for the purposes of this Act, or

(b) prepared from information referred to in paragraph (a),

but does not include information that does not directly or indirectly reveal the identity of the person to whom it relates and, for the purposes of applying subsections (3), (13) and (15) to a representative of a government entity that is not an official, includes only the information described in paragraph (6)(b). (renseignement confidentiel)

court of appeal has the same meaning as in section 2 of the Criminal Code. (cour d'appel)

government entity means

(a) a department or agency of the government of Canada or of a province;

(b) a municipality;

(d) a corporation all of the shares (except directors' qualifying shares) of the capital stock of which are owned by one or more persons each of which is

(i) Her Majesty in right of Canada,

(ii) Her Majesty in right of a province,

(iii) a municipality, or

(iv) a corporation described in this paragraph; or

(e) a board or commission, established by Her Majesty in right of Canada or a province, that performs an administrative or regulatory function of government, or by a municipality, that performs an administrative or regulatory function of a municipality. (entité gouvernementale)

municipality means an incorporated city, town, village, metropolitan authority, township, district, county or rural municipality or other incorporated municipal body however designated. (municipalité)

official means a person that is employed in the service of, that occupies a position of responsibility in the service of, or that is engaged by or on behalf of Her Majesty in right of Canada or a province, or a person that was formerly so employed, that formerly occupied such a position or that formerly was so engaged. (fonctionnaire)

representative of a government entity means a person that is employed in the service of, that occupies a position of responsibility in the service of, or that is engaged by or on behalf of, a government entity, and includes, for the purposes of subsections (2), (3), (13) and (15), a person that was formerly so employed, that formerly occupied such a position or that formerly was so engaged. (représentant)

Provision of confidential information

(2) Except as authorized under this section, an official or other representative of a government entity must not knowingly

(a) provide, or allow to be provided, to any person any confidential information;

(b) allow any person to have access to any confidential information; or

Confidential information evidence not compellable

(3) Despite any other Act of Parliament or other law, no official or other representative of a government entity is required, in connection with any legal proceedings, to give or produce evidence relating to any confidential information.

Communications — proceedings have been commenced

(4) Subsections (2) and (3) do not apply in respect of

(a) criminal proceedings, either by indictment or on summary conviction, that have been commenced by the laying of an information or the preferring of an indictment, under an Act of Parliament; or

(b) any legal proceedings relating to the administration or enforcement of this Act, the Canada Pension Plan, the Employment Insurance Act or any other Act of Parliament or law of a province that provides for the payment of a duty or tax.

Authorized provision of confidential information

(5) The Minister may provide appropriate persons with any confidential information that may reasonably be regarded as necessary solely for a purpose relating to the life, health or safety of an individual or to the environment in Canada or any other country.

Disclosure of confidential information

(6) An official may provide any confidential information

(a) to an official of the Department of the Environment solely for the purposes of Part 2 or the formulation or evaluation of greenhouse gas pollution pricing policy; or

(b) to a person identified in subsection 211(6) of the Excise Act, 2001, but only to the extent that the information is described in that subsection and solely for the applicable purposes identified in that subsection.

Restrictions on information sharing

(7) No information may be provided to a representative of a government entity under paragraph (6)(b) in connection with a program, activity or service provided or undertaken by the government entity unless the government entity uses the business number as an identifier in connection with the program, activity or service.

Public disclosure

(8) The Minister may, in connection with a program, activity or service provided or undertaken by the Minister, make available to the public the business number of, and the name of (including any trade name or other name used by), the holder of a business number.

Public disclosure by representative of government entity

(9) A representative of a government entity may, in connection with a program, activity or service provided or undertaken by the government entity, make available to the public the business number of, and the name of (including any trade name or other name used by), the holder of a business number, if

(a) a representative of the government entity was provided with that information pursuant to paragraph (6)(b); and

(b) the government entity uses the business number as an identifier in connection with the program, activity or service.

Serious offences

(10) An official may provide information to a law enforcement officer of an appropriate police organization in the circumstances described in subsection 211(6.4) of the Excise Act, 2001.

Threats to security

(11) An official may provide information to the head, or their delegate, of a recipient Government of Canada institution listed in Schedule 3 to the Security of Canada Information Sharing Act in the circumstances described in subsection 211(6.5) of the Excise Act, 2001.

Measures to prevent unauthorized use or disclosure

(12) The person presiding at a legal proceeding relating to the supervision, evaluation or discipline of an authorized person may order any measures that are necessary to ensure that confidential information is not used or provided to any person for any purpose not relating to that proceeding, including

(a) holding a hearing in camera;

(b) banning the publication of the information;

(d) sealing the records of the proceeding.

Disclosure to person or on consent

(13) An official or other representative of a government entity may provide confidential information relating to a person

(a) to that person; and

(b) with the consent of that person, to any other person.

Confirmation of registration and business number

(14) On being provided by any person with information specified by the Minister sufficient to identify a single person and a number, an official may confirm or deny that the following statements are both true:

(a) the identified person is registered under Division 4 of this Part; and

(b) the number is the business number of the identified person.

Appeal from order or direction

(15) An order or direction that is made in the course of or in connection with any legal proceedings and that requires an official or other representative of a government entity to give or produce evidence relating to any confidential information may, by notice served on all interested parties, be appealed forthwith by the Minister or by the person against whom the order or direction is made to

(a) the court of appeal of the province in which the order or direction is made, in the case of an order or direction made by a court or other tribunal established under the laws of the province, whether that court or tribunal is exercising a jurisdiction conferred by the laws of Canada; or

(b) the Federal Court of Appeal, in the case of an order or direction made by a court or other tribunal established under the laws of Canada.

Disposition of appeal

(16) The court to which an appeal is taken under subsection (15) may allow the appeal and quash the order or direction appealed from or may dismiss the appeal, and the rules of practice and procedure from time to time governing appeals to the courts must apply, with any modifications that the circumstances require, in respect of an appeal instituted under subsection (15).

Stay

(17) An appeal instituted under subsection (15) must stay the operation of the order or direction appealed from until judgment is pronounced.

SUBDIVISION F

Assessments

Assessment

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

Liability not affected

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

Minister not bound

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

Rebate on reassessment

(4) If a person has paid an amount assessed under this section and the amount paid exceeds the amount determined on reassessment to have been payable by the person, the Minister must provide a rebate to the person equal to the excess and, for the purpose of section 98, the rebate is deemed to have been required to be paid on the day on which the amount was paid to the Minister together with interest on the excess at the prescribed rate for the period beginning on the day the amount was paid by the person and ending on the day the rebate is paid.

Determination of rebates

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

Interest on cancelled amounts

(6) Despite subsection (4), if a person has paid an amount of interest or penalty and the Minister waives or cancels that amount under section 100 or 125, the Minister must rebate the amount to the person, together with interest on the amount at the prescribed rate for the period beginning on the day that is 30 days after the day on which the Minister received a request in a manner satisfactory to the Minister to apply that section and ending on the day on which the rebate is paid.

Restriction on rebates

(7) An amount under this section must not be rebated to a person at any time, unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Part, the Excise Tax Act, the Income Tax Act, the Excise Act, 2001 and the Air Travellers Security Charge Act have been filed with the Minister.

Assessment of rebate

109 (1) On receipt of an application made by a person for a rebate under this Part, the Minister must, without delay, consider the application and assess the amount of the rebate, if any, payable to the person.

Reassessment

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

Assessment of overpayment of rebate

(3) The Minister may assess, reassess or make an additional assessment of an amount payable by a person under section 72 despite any previous assessment of the amount.

Payment

(4) If, on assessment under this section, the Minister determines that a rebate is payable to a person, the Minister must pay the rebate to the person.

Restriction

(5) An amount under this section must not be rebated to a person at any time, unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Part, the Excise Tax Act, the Income Tax Act, the Excise Act, 2001 and the Air Travellers Security Charge Act have been filed with the Minister.

Interest

(6) If a rebate under this section is paid to a person, the Minister must pay interest at the prescribed rate to the person on the rebate for the period beginning on the day that is 30 days after the day on which the application for the rebate is filed with the Minister and ending on the day on which the rebate is paid.

Notice of assessment

110 (1) After making an assessment under this Part, the Minister must send to the person assessed a notice of the assessment.

Payment of remainder

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

Limitation period for assessments

111 (1) Subject to subsections (3) to (7) and (10), no assessment in respect of any charge or other amount payable by a person under this Part must be made more than four years after it became payable by the person under this Part.

Period for assessment of rebate

(2) Subject to subsections (3) to (7) and (10), an assessment under subsection 109(1) of the amount of a rebate may be made at any time, but a reassessment or additional assessment under section 109 or an assessment under subsection 109(3) in respect of an amount paid or applied as a rebate or of an amount paid or applied as interest in respect of an amount paid or applied as a rebate is not to be made more than four years after the day the application for the rebate was filed in accordance with this Part.

Exception — objection or appeal

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

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

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

Exception — neglect or fraud

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

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

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

Exception — other period

(5) If, in making an assessment, the Minister determines that a person has paid in respect of any matter an amount as or on account of a charge, or net charge, payable for a particular reporting period of the person that was in fact payable for another reporting period of the person, the Minister may at any time make an assessment for that other period in respect of that matter.

Exception — adjustment to rebate

(6) If the result of a reassessment on an objection to, or a decision on an appeal from, an assessment is to reduce the amount of a charge, or net charge, payable by a person and, by reason of the reduction, any rebate claimed by the person for a reporting period, or in an application for a rebate, should be reduced, the Minister may at any time assess or reassess that reporting period or that application for rebate, as the case may be, only for the purpose of taking the reduction of charge into account in respect of the rebate.

Alternative basis or argument

(7) The Minister may advance an alternative basis or argument in support of an assessment of a person, or in support of all or any portion of the total amount determined on assessment to be payable by a person under this Part, at any time after the period otherwise limited by subsection (1) or (2) for making the assessment unless, on an appeal under this Part,

(a) there is relevant evidence that the person is no longer able to adduce without leave of the court; and

(b) it is not appropriate in the circumstances for the court to order that the evidence be adduced.

Limitation

(8) If a reassessment of a person is made that gives effect to an alternative basis or argument advanced by the Minister under subsection (7) in support of a particular assessment of the person, the Minister is not to reassess for an amount that is greater than the total amount of the particular assessment.

Exception

(9) Subsection (8) does not apply to any portion of an amount determined on reassessment that the Minister would be entitled to reassess under this Part at any time after the period otherwise limited by subsection (1) or (2) for making the reassessment if this Part were read without reference to subsection (7).

Exception — waiver

(10) An assessment in respect of any matter specified in a waiver filed under subsection (11) may be made at any time within the period specified in the waiver unless the waiver has been revoked under subsection (12), in which case an assessment may be made at any time during the 180 days that the waiver remains in effect.

Filing waiver

(11) Any person may, within the time otherwise limited by subsection (1) or (2) for an assessment, waive the application of subsection (1) or (2) by filing with the Minister a waiver in the prescribed form specifying the period for which, and the matter in respect of which, the person waives the application of that subsection.

Revoking waiver

(12) Any person that has filed a waiver may revoke it by filing with the Minister a notice of revocation of the waiver in the prescribed form and manner. The waiver remains in effect for 180 days after the day on which the notice is filed.

Payment of rebates and other amounts

112 Subject to section 165, a rebate or other amount authorized to be paid under this Part may be paid out of the Consolidated Revenue Fund at the time and in the manner that the Minister considers appropriate.

SUBDIVISION G

Objections to Assessment

Objection to assessment

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

Issue to be decided

(2) A notice of objection must

(a) reasonably describe each issue to be decided;

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

Late compliance

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

Limitation on objections

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

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

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

Application — subsection (4)

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

Limitation on objections

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

Acceptance of objection

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

Consideration of objection

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

Waiving reconsideration

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

Notice of decision

(10) After reconsidering an assessment under subsection (8) or confirming an assessment under subsection (9), the Minister must notify the person objecting to the assessment of the Minister's decision in writing.

Extension of time by Minister

114 (1) If no objection to an assessment is filed under section 113 within the time limited under this Part, a person may make an application to the Minister to extend the time for filing a notice of objection and the Minister may grant the application.

Contents of application

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

How application made

(3) An application must be made by delivering or mailing, to the Assistant Commissioner of the Appeals Branch of the Canada Revenue Agency, the application accompanied by a copy of the notice of objection.

Defect in application

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

Duties of Minister

(5) On receipt of an application, the Minister must, without delay, consider the application and grant or refuse it, and must notify the person of the decision in writing.

Date of objection if application granted

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

Conditions — grant of application

(7) An application must not be granted under this section unless

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

(b) the person demonstrates that

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

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

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

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

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

SUBDIVISION H

Appeal

Extension of time by Tax Court of Canada

115 (1) A person that has made an application under section 114 may apply to the Tax Court of Canada to have the application granted after either

(a) the Minister has refused the application; or

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

When application may not be made

(2) No application may be made after the expiry of 30 days after the day on which the decision referred to in subsection 114(5) was sent to the person.

How application made

(3) An application must be made by filing in the Registry of the Tax Court of Canada, in accordance with the Tax Court of Canada Act, three copies of the documents delivered or mailed under subsection 114(3).

Copy to the Commissioner

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

Powers of Tax Court of Canada

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

When application to be granted

(6) An application must not be granted under this section unless

(a) the application under subsection 114(1) was made within one year after the expiry of the time limited under this Part for objecting; and

(b) the person demonstrates that

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

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

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

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

(iii) the application under subsection 114(1) was made as soon as circumstances permitted it to be made.

Appeal to Tax Court of Canada

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

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

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

No appeal

(2) No appeal under subsection (1) may be instituted after the expiry of 90 days after the day on which notice that the Minister has reassessed or confirmed the assessment is sent to the person under subsection 113(10).

Amendment of appeal

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

Extension of time to appeal

117 (1) If no appeal to the Tax Court of Canada under section 116 has been instituted within the time limited by that section for doing so, a person may make an application to the Tax Court of Canada for an order extending the time within which an appeal may be instituted, and the Court may make an order extending the time for appealing and may impose any terms that it considers just.

Contents of application

(2) An application must set out the reasons why the appeal was not instituted within the time limited under section 116 for doing so.

How application made

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

Copy to Deputy Attorney General of Canada

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

When order to be made

(5) An order must not be made under this section unless

(a) the application is made within one year after the expiry of the time limited under section 116 for appealing; and

(b) the person demonstrates that

(i) within the time limited under section 116 for appealing, the person

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

(B) had a bona fide intention to appeal,

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

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

(iv) there are reasonable grounds for the appeal.

Limitation on appeals to the Tax Court of Canada

118 (1) Despite section 116, if a person has filed a notice of objection to an assessment, the person may appeal to the Tax Court of Canada to have the assessment vacated, or a reassessment made, only with respect to

(a) an issue in respect of which the person has complied with subsection 113(2) in the notice and the relief sought in respect of the issue as specified by the person in the notice; or

(b) an issue described in subsection 113(5) if the person was not required to file a notice of objection to the assessment that gave rise to the issue.

No appeal if waiver

(2) Despite section 116, a person may not appeal to the Tax Court of Canada to have an assessment vacated or varied in respect of an issue for which the right of objection or appeal has been waived in writing by the person.

Institution of appeals

119 An appeal to the Tax Court of Canada under this Part must be instituted in accordance with the Tax Court of Canada Act.

Disposition of appeal

120 The Tax Court of Canada may dispose of an appeal from an assessment by

(a) dismissing it; or

(b) allowing it and

(i) vacating the assessment, or

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

References to Tax Court of Canada

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

Time during consideration not to count

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

(a) the four-year period referred to in subsection 111(1);

(b) the period within which a notice of objection to an assessment may be filed under section 113; or

Reference of common questions to Tax Court of Canada

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

Contents of application

(2) An application must set out

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

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

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

Service

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

Determination by Tax Court of Canada of question

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

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

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

Determination final and conclusive

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

Appeal

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

Parties to appeal

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

Time during consideration not counted

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

(a) the four-year period referred to in subsection 111(1);

(b) the period within which a notice of objection to an assessment may be filed under section 113; or

Excluded periods

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

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

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

SUBDIVISION I

Penalties

Failure to file a return when required

123 Every person that fails to file a return for a reporting period as and when required under this Part is liable to pay a penalty equal to the sum of

(a) an amount equal to 1% of the total of all amounts each of which is an amount that is required to be paid for the reporting period and was not paid on the day on which the return was required to be filed, and

(b) the amount obtained when one quarter of the amount determined under paragraph (a) is multiplied by the number of complete months, not exceeding 12, from the day on which the return was required to be filed to the day on which the return is filed.

Failure to file by electronic transmission

124 In addition to any other penalty under this Part, every person that fails to file a return under this Part for a reporting period as required by subsection 89(3) is liable to pay a penalty equal to an amount determined in prescribed manner.

Waiving or cancelling penalties

125 (1) The Minister may, on or before the day that is 10 calendar years after the end of a reporting period of a person, or on application by the person on or before that day, waive or cancel all or any portion of any penalty under this Part payable by the person in respect of the reporting period.

Interest if amount waived or cancelled

(2) If a person has paid an amount of penalty and the Minister waives or cancels that amount under subsection (1), the Minister must pay interest on the amount paid by the person beginning on the day that is 30 days after the day on which the Minister received a request in a manner satisfactory to the Minister to apply that subsection and ending on the day on which the amount is rebated to the person.

Failure to register

126 Every person that is required to be registered under Division 4 of this Part but does not apply for registration under that Division as and when required is liable to pay a penalty of $2,000.

General penalty

127 Every person that fails to comply with any provision of this Part for which no other penalty is specified is liable to pay a penalty of $250.

Failure to answer demand

128 Every person that fails to file a return as and when required under a demand issued under section 92 is liable to a penalty of $500.

Failure to provide information

129 Every person that fails to provide any information or record as and when required under this Part is liable to a penalty of $250 for every failure unless, in the case of information required in respect of another person, a reasonable effort was made by the person to obtain the information.

Failure to provide information

130 Every person that fails to report an amount prescribed by regulation, or to provide information prescribed by regulation, in a return prescribed by regulation as and when required, or that misstates such an amount or such information in such a return, is liable to pay a penalty, in addition to any other penalty under this Part, equal to an amount determined in prescribed manner for each such failure or misstatement by the person.

False statements or omissions

131 Every person that knowingly, or under circumstances amounting to gross negligence, makes or participates in, assents to or acquiesces in the making of a false statement or omission in a return, application, form, certificate, statement, invoice or answer (each of which is in this section referred to as a "return") is liable to pay a penalty of the greater of $500 and 25% of the total of

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

(i) the amount payable

exceeds

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

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

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

exceeds

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

SUBDIVISION J

Offences and Punishment

Offence for failure to file return or to comply with demand or order

132 (1) Every person that fails to file or make a return as and when required under this Part or that fails to comply with an obligation under subsection 104(6) or (9) or section 106, or an order made under section 137, is guilty of an offence and, in addition to any penalty otherwise provided, is liable on summary conviction to a fine of not less than $2,000 and not more than $40,000 or to imprisonment for a term not exceeding 12 months, or to both.

Saving

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

Offences for false or deceptive statement

133 (1) Every person commits an offence that

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

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

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

(d) intentionally, in any manner, obtains or attempts to obtain a rebate or other payment payable under this Part to which the person is not entitled; or

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

Punishment

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

(a) a fine of not less than 50%, and not more than 200%, of the amount payable that was sought to be evaded, or of the rebate or other payment 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 $40,000;

(b) imprisonment for a term not exceeding two years; or

Prosecution on indictment

(3) Every person that 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 payable that was sought to be evaded, or of the rebate or other payment sought, or, if the amount that was sought to be evaded cannot be ascertained, a fine of not less than $5,000 and not more than $100,000;

(b) imprisonment for a term not exceeding five years; or

Penalty on conviction

(4) A person that is convicted of an offence under this section is not liable to pay a penalty imposed under this Part 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 Part, substantially the same facts are at issue as those that are at issue in a prosecution under this section, the Minister may file a stay of proceedings with the Tax Court of Canada and, upon that filing, the proceedings before the Tax Court of Canada are stayed pending a final determination of the outcome of the prosecution.

Offence — confidential information

134 (1) A person is guilty of an offence and liable on summary conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 12 months, or to both, if that person

(a) contravenes subsection 107(2); or

(b) knowingly contravenes an order made under subsection 107(12).

Offence — confidential information

(2) Every person to whom confidential information has been provided for a particular purpose under subsection 107(6) and that for any other purpose knowingly uses, provides to any person, allows the provision to any person of, or allows any person access to, that information is guilty of an offence and liable on summary conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 12 months, or to both.

Definition of confidential information

(3) In this section, confidential information has the same meaning as in subsection 107(1).

Failure to pay charge

135 Every person that intentionally fails to pay a charge as and when required under this Part is guilty of an offence punishable on summary conviction and liable, in addition to any penalty or interest otherwise provided, to

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

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

General offence

136 Every person that fails to comply with any provision of this Part for which no other offence is specified in this Part is guilty of an offence punishable on summary conviction and liable to a fine of not more than $100,000 or to imprisonment for a term of not more than 12 months, or to both.

Compliance orders

137 If a person is convicted by a court of an offence for a failure to comply with a provision of this Part, the court may make any order that it deems appropriate to enforce compliance with the provision.

Officers of corporations, etc.

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

Power to decrease punishment

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

Information or complaint

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

Two or more offences

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

Territorial jurisdiction

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

Limitation of prosecutions

(4) No proceeding by way of summary conviction in respect of an offence under this Part may be instituted more than five years after the day on which the subject matter of the proceedings arose, unless the prosecutor and the defendant agree that they may be instituted after the five years.

SUBDIVISION K

Inspections

By whom

141 (1) A person authorized by the Minister to do so may, at all reasonable times, for any purpose related to the administration or enforcement of this Part, inspect, audit or examine the records, processes, property or premises of a person that may be relevant in determining the obligations of that or any other person under this Part, or the amount of any rebate to which that or any other person is entitled under this Part and whether that person or any other person is in compliance with this Part.

Powers of authorized person

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

(a) enter any place in which the authorized person reasonably believes the person keeps or should keep records, carries on any activity to which this Part applies or does anything in relation to that activity; and

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

Prior authorization

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

Warrant to enter dwelling-house

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

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

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

Orders if entry not authorized

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

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

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

Definition of dwelling-house

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

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

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

Compliance order

142 (1) On summary application by the Minister, a judge may, despite subsection 137, order a person to provide any access, assistance, information or record sought by the Minister under section 106 or 141 if the judge is satisfied that the person was required under section 106 or 141 to provide the access, assistance, information or record and did not do so.

Notice required

(2) An application under subsection (1) must not be heard before the end of five clear days from the day the notice of application is served on the person against which the order is sought.

Judge may impose conditions

(3) The judge making an order under subsection (1) may impose any conditions in respect of the order that the judge considers appropriate.

Contempt of court

(4) If a person fails or refuses to comply with an order, a judge may find the person in contempt of court and the person is subject to the processes and the punishments of the court to which the judge is appointed.

Appeal

(5) An order by a judge under subsection (1) may be appealed to a court having appellate jurisdiction over decisions of the court to which the judge is appointed. An appeal does not suspend the execution of the order unless it is so ordered by a judge of the court to which the appeal is made.

Search warrant

143 (1) A judge may, on ex parte application by the Minister, issue a warrant authorizing any person named in the warrant to enter and search any building, receptacle or place for any record or thing that may afford evidence of the commission of an offence under this Part and to seize the record or thing and, as soon as is practicable, bring it before, or make a report in respect of the record or thing to, the judge or, if that judge is unable to act, another judge of the same court, to be dealt with by the judge in accordance with this section.

Evidence on oath

(2) An application under subsection (1) must be supported by information on oath establishing the facts on which the application is based.

Issue of warrant

(3) A judge may issue a warrant referred to in subsection (1) if the judge is satisfied that there are reasonable grounds to believe that

(a) an offence under this Part has been committed;

(b) a record or thing that may afford evidence of the commission of the offence is likely to be found; and

(c) the building, receptacle or place specified in the application is likely to contain a record or thing referred to in paragraph (b).

Contents of warrant

(4) A warrant issued under subsection (1) must refer to the offence for which it is issued, identify the building, receptacle or place to be searched and the person that is alleged to have committed the offence, and it must be reasonably specific as to any record or thing to be searched for and seized.

Seizure

(5) Any person that executes a warrant issued under subsection (1) may seize, in addition to the record or thing referred to in that subsection, any other record or thing that the person believes on reasonable grounds affords evidence of the commission of an offence under this Part and must, as soon as is practicable, bring the record or thing before, or make a report in respect of the record or thing, the judge that issued the warrant or, if that judge is unable to act, another judge of the same court, to be dealt with by the judge in accordance with this section.

Retention

(6) Subject to subsection (7), if any record or thing seized under subsection (1) or (5) is brought before a judge or a report in respect of the record or thing is made to a judge, the judge must, unless the Minister waives retention, order that it be retained by the Minister, that must take reasonable care to ensure that it is preserved until the conclusion of any investigation into the offence in relation to which the record or thing was seized or until it is required to be produced for the purposes of a criminal proceeding.

Return of records or things seized

(7) If any record or thing seized under subsection (1) or (5) is brought before a judge or a report in respect of the record or thing is made to a judge, the judge may, on the judge's own motion or on summary application by a person with an interest in the record or thing on three clear days notice of application to the Deputy Attorney General of Canada, order that the record or thing be returned to the person from which it was seized or the person that is otherwise legally entitled to the record or thing, if the judge is satisfied that the record or thing

(a) will not be required for an investigation or a criminal proceeding; or

(b) was not seized in accordance with the warrant or this section.

Access and copies

(8) The person from which any record or thing is seized under this section is entitled, at all reasonable times and subject to any reasonable conditions that may be imposed by the Minister, to inspect the record or thing and, in the case of a document, to obtain one copy of the record at the expense of the Minister.

Definition of foreign-based information or record

144 (1) For the purposes of this section, foreign-based information or record means any information or record that is available or located outside Canada and that may be relevant to the administration or enforcement of this Part.

Requirement to provide foreign-based information

(2) Despite any other provision of this Part, the Minister may, by notice served personally or by confirmed delivery service, require a person resident in Canada or a non-resident person that carries on business in Canada to provide any foreign-based information or record.

Notice

(3) A notice referred to in subsection (2) must set out

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

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

(c) the consequences under subsection (8) to the person of the failure to provide the information or record being sought within the period of time set out in the notice.

Review of foreign information requirement

(4) The person on which a notice of a requirement is served under subsection (2) may, within 90 days after the day on which the notice was served, apply to a judge for a review of the requirement.

Powers on review

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

(a) confirm the requirement;

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

Related person

(6) For the purposes of subsection (5), a requirement to provide information or a record is not to be considered to be unreasonable because the information or record is under the control of, or available to, a non-resident person that is not controlled by the person served with the notice of the requirement under subsection (2) if that person is related, within the meaning of section 6 of the Excise Act, 2001, to the non-resident person.

Time during consideration not to count

(7) The period of time between the day an application for the review of a requirement is made under subsection (4) and the day the review is decided must not be counted in the computation of

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

(b) the period of time within which an assessment may be made under section 108 or 109.

Consequence of failure

(8) If a person fails to comply substantially with a notice served under subsection (2) and if the notice is not set aside under subsection (5), any court having jurisdiction in a civil proceeding relating to the administration or enforcement of this Part must, on motion of the Minister, prohibit the introduction by that person of any foreign-based information or record covered by that notice.

Copies

145 If any record is seized, inspected, audited, examined or provided under any of sections 96, 106 and 141 to 143, the person by whom it is seized, inspected, audited or examined or to whom it is provided or any officer of the Canada Revenue Agency may make or cause to be made one or more copies of it and, in the case of an electronic record, make or cause to be made a print-out of the electronic record, and any record purporting to be certified by the Minister or an authorized person to be a copy of the record, or to be a print-out of an electronic record, made under this section is evidence of the nature and content of the original record and has the same probative force as the original record would have if it were proven in the ordinary way.

Compliance

146 Every person must, unless the person is unable to do so, do everything the person is required to do by or pursuant to any of sections 106 and 141 to 145 and no person is to, physically or otherwise, do or attempt to do any of the following:

(a) interfere with, hinder or molest any official as defined in section 107 doing anything the official is authorized to do under this Part; or

(b) prevent any official from doing anything the official is authorized to do under this Part.

Information respecting non-resident persons

147 Every person that is liable, at any time in a calendar year, to pay an amount of charge under this Part must, in respect of each non-resident person with which it was not, in prescribed circumstances, dealing at arm's length at any time in the year, file with the Minister, within six months after the end of the year, prescribed information for the year in respect of transactions with that person.

SUBDIVISION L

Collection

Definitions

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

action means an action to collect a charge debt of a person and includes a proceeding in a court and anything done by the Minister under any of sections 152 to 157. (action)

charge debt means any amount payable by a person under this Part. (dette)

legal representative of a person means a trustee in bankruptcy, an assignee, a liquidator, a curator, a receiver of any kind, a trustee, an heir, an administrator, an executor, a liquidator of a succession, a committee, or any other like person, administering, winding up, controlling or otherwise dealing in a representative or fiduciary capacity with any property, business, commercial activity or estate or succession that belongs or belonged to, or that is or was held for the benefit of, the person or the person's estate or succession. (représentant légal)

Debts to Her Majesty

(2) A charge debt is a debt due to Her Majesty in right of Canada and is recoverable as such in the Federal Court or any other court of competent jurisdiction or in any other manner provided under this Part.

Court proceedings

(3) The Minister may not commence a proceeding in a court to collect a charge debt of a person in respect of an amount that may be assessed under this Part, unless when the proceeding is commenced the person has been or may be assessed for that amount.

No actions after limitation period

(4) The Minister may not commence an action to collect a charge debt after the end of the limitation period for the collection of the charge debt.

Limitation period

(5) The limitation period for the collection of a charge debt of a person

(a) begins

(i) if a notice of assessment in respect of the charge debt, or a notice referred to in subsection 158(1) in respect of the charge debt, is sent to or served on the person, on the last day on which one of those notices is sent or served, and

(ii) if no notice referred to in subparagraph (i) in respect of the charge debt was sent or served, on the earliest day on which the Minister can commence an action to collect that charge debt; and

(b) ends, subject to subsection (9), on the day that is 10 years after the day on which it begins.

Limitation period restarted

(6) The limitation period described in subsection (5) for the collection of a charge debt of a person restarts (and ends, subject to subsection (9), on the day that is 10 years after the day on which it restarts) on any day, before it would otherwise end, on which

(a) the person acknowledges the charge debt in accordance with subsection (7);

(b) all or part of the charge debt is deemed under section 85 to have been paid;

(d) the Minister assesses, under this Part, another person in respect of the charge debt.

Acknowledgement of charge debts

(7) A person acknowledges a charge debt if the person

(a) promises, in writing, to pay the charge debt;

(b) makes a written acknowledgement of the charge debt, whether or not a promise to pay can be inferred from the acknowledgement and whether or not it contains a refusal to pay; or

(c) makes a payment, including a purported payment by way of a negotiable instrument that is dishonoured, on account of the charge debt.

Agent or mandatary or legal representative

(8) For the purposes of this section, an acknowledgement made by a person's agent or mandatary or legal representative has the same effect as if it were made by the person.

Extension of limitation period

(9) In computing the day on which a limitation period ends, there must be added the number of days on which one or more of the following is the case:

(a) the Minister has postponed collection action against the person under subsection (12) in respect of the charge debt;

(b) the Minister has accepted and holds security in lieu of payment of the charge debt;

(c) if the person was resident in Canada on the applicable date described in paragraph (5)(a) in respect of the charge debt, the person is non-resident;

(d) the Minister may not, because of any of subsections 150(2) to (5), take any of the actions described in subsection 150(1) in respect of the charge debt; or

(e) an action that the Minister may otherwise take in respect of the charge debt is restricted or not permitted under any provision of the Bankruptcy and Insolvency Act, of the Companies' Creditors Arrangement Act or of the Farm Debt Mediation Act.

Assessment before collection

(10) The Minister may not take any collection action under sections 152 to 157 in respect of any amount payable by a person that may be assessed under this Part, other than interest under section 97, unless the amount has been assessed.

Payment of remainder

(11) If the Minister sends a notice of assessment to a person, any amount assessed then remaining unpaid is payable forthwith by the person to the Receiver General.

Minister may postpone collection

(12) The Minister may, subject to any terms and conditions that the Minister may stipulate, postpone collection action against a person in respect of all or any part of any amount assessed that is the subject of a dispute between the Minister and the person.

Interest on judgments

(13) If a judgment is obtained for any amount payable under this Part, including a certificate registered under section 152, the provisions of this Part by which interest is payable for a failure to pay an amount apply, with any modifications that the circumstances require, to the failure to pay the judgment debt, and the interest is recoverable in like manner as the judgment debt.

Litigation costs

(14) If an amount is payable by a person to Her Majesty in right of Canada because of an order, judgment or award of a court in respect of the costs of litigation relating to a matter to which this Part applies, sections 149 and 152 to 158 apply to the amount as if it were payable under this Part.

Security

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

Surrender of excess security

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

Collection restrictions

150 (1) If a person is liable for the payment of an amount under this Part, the Minister must not, for the purpose of collecting the amount, take any of the following actions until the end of 90 days after the date of a notice of assessment under this Part in respect of the amount:

(a) commence legal proceedings in a court;

(b) certify the amount under section 152;

(d) require an institution or a person to make a payment under subsection 153(2);

(e) require a person to turn over moneys under subsection 156(1); or

(f) give a notice, issue a certificate or make a direction under subsection 157(1).

No action after service of notice of objection

(2) If a person has served a notice of objection under this Part to an assessment of an amount payable under this Part, the Minister must not, for the purpose of collecting the amount in controversy, take any of the actions described in subsection (1) until the end of 90 days after the date of the notice to the person that the Minister has confirmed or varied the assessment.

No action after making appeal to Tax Court

(3) If a person has appealed to the Tax Court of Canada from an assessment of an amount payable under this Part, the Minister must not, for the purpose of collecting the amount in controversy, take any of the actions described in subsection (1) before the earlier of the day on which a copy of the decision of the Court is mailed to the person and the day on which the person discontinues the appeal.

No action pending determination by Tax Court

(4) If a person has agreed under subsection 121(1) that a question should be determined by the Tax Court of Canada, or if a person is served with a copy of an application made under subsection 122(1) to that Court for the determination of a question, the Minister must not take any of the actions described in subsection (1) for the purpose of collecting that part of an amount assessed, the liability for payment of which could be affected by the determination of the question, before the day on which the question is determined by the Court.

Action after judgment

(5) Despite any other provision in this section, if a person has served a notice of objection under this Part to an assessment or has appealed to the Tax Court of Canada from an assessment and agrees in writing with the Minister to delay proceedings on the objection or appeal, as the case may be, until judgment has been given in another action before the Tax Court of Canada, the Federal Court of Appeal or the Supreme Court of Canada in which the issue is the same or substantially the same as that raised in the objection or appeal of the person, the Minister may take any of the actions described in subsection (1) for the purpose of collecting the amount assessed, or a part of it, determined in a manner consistent with the judgment of the Court in the other action at any time after the Minister notifies the person in writing that the judgment has been given by the Court in the other action.

Collection of large amounts

(6) Despite subsections (1) to (5), if, at any time, the total of all amounts that a person has been assessed under this Part and that remain unpaid exceeds $1,000,000, the Minister may collect up to 50% of the total.

Over $10,000,000 — security

151 (1) The Minister may, by sending a notice to a person, require security in a form satisfactory to the Minister and in an amount up to a specified amount that is the greater of zero dollars and the amount that is determined by the formula

[(A/2) – B] – $10,000,000

where

A is the total of all amounts, each of which is an amount that the person has been assessed under this Part in respect of which a portion remains unpaid,

B is the greater of zero dollars and the amount that is determined by the formula

C – (D/2)

where

C is the total of all amounts that the person has paid against the amount determined for A in the first formula in this subsection, and

D is the amount determined for A in the first formula in this subsection.

When security to be given

(2) The security required under subsection (1)

(a) must be given to the Minister no later than 60 days after the day on which the Minister required the security; and

(b) must be in a form satisfactory to the Minister.

Failure to comply

(3) Despite subsections 150(1) to (5), the Minister may collect an amount equivalent to the amount of security that was required under subsection (1) if the security required under that subsection is not given to the Minister as set out in this section.

Certificates

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

Registration in court

(2) On production to the Federal Court, a certificate made under subsection (1) in respect of a debtor must be registered in the Court and when so registered has the same effect, and all proceedings may be taken on the certificate, as if it were a judgment obtained in the Court against the debtor for a debt in the amount certified plus interest on the amount as provided under this Part to the day of payment and, for the purposes of those proceedings, the certificate is deemed to be a judgment of the Court against the debtor for a debt due to Her Majesty in right of Canada and enforceable as such.

Costs

(3) All reasonable costs and charges incurred or paid for the registration in the Federal Court of a certificate made under subsection (1) or in respect of any proceedings taken to collect the amount certified are recoverable in like manner as if they had been included in the amount certified in the certificate when it was registered.

Charge on property

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

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

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

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

Creation of charge

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

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

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

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

Proceedings in respect of memorial

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

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

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

(ii) proceedings taken to collect the amount,

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

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

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

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

Presentation of documents

(7) If

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

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

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

Prohibition — sale, etc., without consent

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

Completion of notices, etc.

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

Application for order

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

Secured claims

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

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

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

Details in certificates and memorials

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

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

(b) to refer to the rate of interest or penalty to be charged on the separate amounts making up the amount payable in general terms

(i) in the case of interest, as interest at the prescribed rate under this Part applicable from time to time on amounts payable to the Receiver General, without indicating the specific rates of interest to be charged on each of the separate amounts or to be charged for any period; and

(ii) in the case of a penalty, the penalty calculated under section 123 on amounts payable to the Receiver General.

Garnishment

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

Garnishment of loans or advances

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

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

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

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

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

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

Effect of receipt

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

Effect of requirement

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

Failure to comply

(5) Every person that fails to comply with a requirement under subsection (1) or (4) is liable to pay to Her Majesty in right of Canada an amount equal to the amount that the person was required under that subsection to pay to the Receiver General.

Failure to comply

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

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

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

Assessment

(7) The Minister may assess any person for any amount payable under this section by the person to the Receiver General and, if the Minister sends a notice of assessment, sections 87 and 108 to 122 apply with any modifications that the circumstances require.

Time limit

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

Effect of payment as required

(9) If an amount that would otherwise have been advanced, loaned or paid to or on behalf of a debtor is paid by a person to the Receiver General in accordance with a notice from the Minister issued under this section or with an assessment under subsection (7), the person is deemed for all purposes to have advanced, loaned or paid the amount to or on behalf of the debtor.

Recovery by deduction or set-off

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

Acquisition of debtor's property

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

Money seized from debtor

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

Receipt of Minister

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

Seizure

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

Disposition

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

Proceeds of disposition

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

Exemptions from seizure

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

Person leaving Canada or defaulting

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

Seizure

(2) If a person fails to pay an amount required under subsection (1), the Minister may direct that things of the person be seized, and subsections 157(2) to (4) apply, with any modifications that the circumstances require.

Definitions

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

assessed period of a person, in respect of an authorization under subsection (2) relating to a particular reporting period of the person, means

(a) if the hearing date is before the last day of the particular reporting period, the period beginning on the first day of the particular reporting period and ending on the assessment date; and

(b) in any other case, the particular reporting period. (période visée)

assessment date in respect of an authorization under subsection (2) means the day immediately before the hearing date. (date de cotisation)

hearing date in respect of an authorization under subsection (2) means the day on which a judge hears the application for the authorization. (date d'audience)

Authorization to assess and take collection action

(2) Despite section 150, if, on ex parte application by the Minister relating to a particular reporting period of a person, a judge is satisfied that there are reasonable grounds to believe that the net charge for the period, determined without reference to this section, would be a positive amount and that the collection of all or any part of that net charge would be jeopardized by a delay in its collection, the judge must, on any terms that the judge considers reasonable in the circumstances, authorize the Minister to, without delay,

(a) assess the net charge for the assessed period, determined in accordance with subsection (3); and

(b) take any of the actions described in sections 152 to 157 in respect of that amount.

Effect of authorization

(3) For the purposes of this Part, if an authorization is granted under subsection (2) in respect of an application relating to a particular reporting period of a person,

(a) if the hearing date is before the last day of the particular reporting period, the following periods are each deemed to be a separate reporting period of the person:

(i) the assessed period, and

(ii) the period beginning on the hearing date and ending on the last day of the particular reporting period;

(b) the day on or before which the person is required to file a return under section 69 for the assessed period is deemed to be the hearing date;

(c) the net charge for the assessed period is deemed to be equal to the amount that would be the net charge for the period if, on the assessment date, the person were to claim in a return filed under section 69 for the period all amounts, each of which is an amount that the person would be entitled on that day to claim as a rebate for the period or as a negative amount that is required to be added in determining the net charge for the period;

(d) the net charge for the assessed period is deemed to have become due to the Receiver General on the hearing date;

(e) if, in assessing the net charge for the assessed period, the Minister takes into account an amount that the person would be entitled to claim as a rebate or a negative amount that is required to be added in determining the net charge, the person is deemed to have claimed the amount in a return filed under section 69 for the assessed period; and

(f) subsection 73(2) and sections 97, 123, 129 and 130 apply as if the net charge for the assessed period were not required to be paid, and the return for that period were not required to be filed, until the last day of the period described in subsection (9).

Affidavits

(4) Statements contained in an affidavit filed in the context of an application under this section may be based on belief in which case it must include the grounds for that belief.

Service of authorization and notice of assessment

(5) An authorization granted under subsection (2) in respect of a person must be served by the Minister on the person within 72 hours after it is granted, except if the judge orders the authorization to be served at some other time specified in the authorization, and a notice of assessment for the assessed period must be served on the person together with the authorization.

How service effected

(6) For the purpose of subsection (5), service on a person must be effected by personal service on the person or service in accordance with the directions of a judge.

Application to judge for direction

(7) If service cannot reasonably be effected as and when required under this section, the Minister may, as soon as practicable, apply to a judge for further direction.

Review of authorization

(8) If a judge of a court has granted an authorization under subsection (2) in respect of a person, the person may, on six clear days notice to the Deputy Attorney General of Canada, apply to a judge of the court to review the authorization.

Limitation period for review application

(9) An application by a person under subsection (8) to review an authorization must be made

(a) within 30 days after the day on which the authorization was served on the person in accordance with this section; or

(b) within any further time that a judge may allow, on being satisfied that the application was made as soon as practicable.

Hearing in camera

(10) An application by a person under subsection (8) may, on the application of the person, be heard in private, if the person establishes to the satisfaction of the judge that the circumstances of the case justify proceedings heard in private.

Disposition of application

(11) On an application under subsection (8), the judge must determine the question summarily and may confirm, vary or set aside the authorization and make any other order that the judge considers appropriate.

Effect of setting aside authorization

(12) If an authorization is set aside under subsection (11), subsection (3) does not apply in respect of the authorization and any assessment made as a result of the authorization is deemed to be void.

Directions

(13) If any question arises as to the course to be followed in connection with anything done or being done under this section and there is no relevant direction in this section, a judge may give any direction with regard to the course to be followed that, in the opinion of the judge, is appropriate.

No appeal from review order

(14) No appeal lies from an order of a judge made under subsection (11).

Compliance by unincorporated bodies

160 (1) If any amount is required to be paid or any other thing is required to be done by or under this Part by a person (in this section referred to as the "body") that is not an individual, partnership, corporation, trust, joint venture, or estate or succession of a deceased individual, it is the joint and several, or solidary, liability and responsibility of

(a) every member of the body holding office as president, chairperson, treasurer, secretary or similar officer of the body,

(b) if there are no officers of the body referred to in paragraph (a), every member of any committee having management of the affairs of the body, and

(c) if there are no officers of the body referred to in paragraph (a) and no committee referred to in paragraph (b), every member of the body,

to pay that amount or to comply with the requirement, and if the amount is paid or the requirement is fulfilled by an officer of the body referred to in paragraph (a), a member of a committee referred to in paragraph (b) or a member of the body, it is considered as compliance with the requirement.

Assessment

(2) The Minister may assess any person for any amount for which the person is liable under this section and, if the Minister sends a notice of assessment, sections 87 and 108 to 122 are applicable, with any modifications that the circumstances require.

Limitation

(3) An assessment of a person under subsection (2) must not

(a) include any amount that the body was liable to pay before the day the person became jointly and severally, or solidarily, liable;

(b) include any amount that the body became liable to pay after the day the person ceased to be jointly and severally, or solidarily, liable; or

(c) be made more than two years after the day on which the person ceased to be jointly and severally, or solidarily, liable unless the person was grossly negligent in the carrying out of any obligation imposed on the body by or under this Part or made, or participated in, assented to or acquiesced in the making of, a false statement or omission in a return, application, form, certificate, statement, invoice or answer made by the body.

Charge liability — transfers not at arm's length

161 (1) If at any time a person transfers property, either directly or indirectly, by means of a trust or by any other means, to

(a) the transferor's spouse or common-law partner or an individual that has since become the transferor's spouse or common-law partner,

(b) an individual that was under 18 years of age, or

the transferee and transferor are jointly and severally, or solidarily, liable to pay under this Part an amount equal to the lesser of

(d) the amount determined by the formula

A – B

where

A is the amount, if any, by which the fair market value of the property at that time exceeds the fair market value at that time of the consideration given by the transferee for the transfer of the property, and

B is the amount, if any, by which the amount assessed the transferee under paragraph 97.44(1)(b) of the Customs Act, subsection 325(2) of the Excise Tax Act, subsection 160(2) of the Income Tax Act or subsection 297(3) of the Excise Act, 2001 in respect of the property exceeds the amount paid by the transferor in respect of the amount so assessed, and

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

(i) an amount that the transferor is liable to pay under this Part for the reporting period of the transferor that includes that time or any preceding reporting period of the transferor, or

(ii) interest or penalty for which the transferor is liable as of that time,

but nothing in this subsection limits the liability of the transferor under this Part.

Fair market value of undivided interest

(2) For the purpose of this section, the fair market value at any time of an undivided interest in a property, expressed as a proportionate interest in that property, is, subject to subsection (5), deemed to be equal to the same proportion of the fair market value of that property at that time.

Assessment

(3) The Minister may at any time assess a transferee in respect of any amount payable by reason of this section, and the provisions of sections 87 and 108 to 122 apply, with any modifications that the circumstances require.

Rules applicable

(4) If a transferor and transferee have, by reason of subsection (1), become jointly and severally, or solidarily, liable in respect of part or all of the liability of the transferor under this Part, the following rules apply:

(a) a payment by the transferee on account of the transferee's liability must, to the extent of the payment, discharge their liability; and

(b) a payment by the transferor on account of the transferor's liability only discharges the transferee's liability to the extent that the payment operates to reduce the transferor's liability to an amount less than the amount in respect of which the transferee was, by subsection (1), made jointly and severally, or solidarily, liable.

Transfers to spouse or common-law partner

(5) Despite subsection (1), if at any time an individual transfers property to the individual's spouse or common-law partner under a decree, order or judgment of a competent tribunal or under a written separation agreement and, at that time, the individual and the individual's spouse or common-law partner were separated and living apart as a result of the breakdown of their marriage or common-law partnership as defined in subsection 248(1) of the Income Tax Act, for the purposes of paragraph (1)(d), the fair market value at that time of the property so transferred is deemed to be nil, but nothing in this subsection limits the liability of the individual under this Part.

SUBDIVISION M

Evidence and Procedure

Service

162 (1) If the Minister is authorized or required to serve, issue or send a notice or other document on or to a person that

(a) is a partnership, the notice or document may be addressed to the name of the partnership;

(b) is a joint venture, the notice or document may be addressed to the name of the joint venture;

(d) is a society, club, association, organization or other body, the notice or document may be addressed to the name of the body; and

(e) carries on business under a name or style other than the name of the person, the notice or document may be addressed to the name or style under which the person carries on business.

Personal service

(2) If the Minister is authorized or required to serve, issue or send a notice or other document on or to a person that carries on a business, the notice or document is deemed to have been validly served, issued or sent if it is

(a) if the person is a partnership, served personally on one of the partners or left with an adult person employed at the place of business of the partnership; or

(b) if the person is a joint venture, served personally on one of the participants in, or operators of, the joint venture or left with an adult person employed at the place of business of the joint venture; or

Timing of receipt

163 (1) For the purposes of this Part and subject to subsection (2), anything sent by confirmed delivery service or first class mail is deemed to have been received by the person to which it was sent on the day it was mailed or sent.

Timing of payment

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

Proof of service

164 (1) If, under this Part, provision is made for sending by confirmed delivery service a request for information, a notice or a demand, an affidavit of an officer of the Canada Revenue Agency, sworn before a commissioner or other person authorized to take affidavits, is evidence of the sending and of the request, notice or demand if the affidavit sets out that

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

(b) the request, notice or demand was sent by confirmed delivery service on a specified day to a specified person and address; and

(i) if the request, notice, or demand was sent by registered or certified mail, the post office certificate of registration of the letter or a true copy of the relevant portion of the certificate, and

(ii) in any other case, the record that the document has been sent or a true copy of the relevant portion of the record.

Proof of personal service

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

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

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

Proof — failure to comply

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

Proof — time of compliance

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

Proof of documents

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

Proof of documents

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

Proof of no appeal

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

Presumption

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

Proof of documents

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

Proof of documents

(10) Every document purporting to have been executed under or in the course of the administration or enforcement of this Part over the name in writing of the Minister of Public Safety and Emergency Preparedness, the President of the Canada Border Services Agency or an officer authorized to exercise the powers or perform the duties of that Minister under this Part is deemed to be a document signed, made and issued by that Minister, the President or the officer, unless it has been called into question by that Minister or a person acting for that Minister or for Her Majesty in right of Canada.

Mailing or sending date

(11) For the purposes of this Part, if a notice or demand that the Minister is required or authorized under this Part to send to a person is mailed, or sent electronically, to the person, the day of mailing or sending, as the case may be, is presumed to be the date of the notice or demand.

Date electronic notice sent

(12) For the purposes of this Part, if a notice or other communication in respect of a person is made available in electronic format such that it can be read or perceived by a person or a computer system or other similar device, the notice or other communication is presumed to be sent to the person and received by the person on the date that an electronic message is sent, to the electronic address most recently provided before that date by the person to the Minister for the purposes of this subsection, informing the person that a notice or other communication requiring the person's immediate attention is available in the person's secure electronic account. A notice or other communication is considered to be made available if it is posted by the Minister in the person's secure electronic account and the person has authorized that notices or other communications may be made available in this manner and has not before that date revoked that authorization in a manner specified by the Minister.

Date assessment made

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

Proof of return

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

Proof of return — printouts

(15) For the purposes of this Part, a document presented by the Minister purporting to be a printout of the information in respect of a person received under section 89 by the Minister is to be received as evidence and, in the absence of evidence to the contrary, is proof of the return filed by the person under that section.

Proof of return — production of returns, etc.

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

Evidence

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

Division 7

Distribution of Fuel Charge

Definition of net amount

165 (1) In this section, net amount in respect of a province or area and a period fixed by the Minister means the charges levied by Her Majesty in right of Canada under this Part in respect of the province or area and that period less any amounts in respect of the charges that are rebated, refunded or remitted under this Part or any other Act of Parliament in that period.

Distribution

(2) For each province or area that is or was a listed province, the Minister must distribute the net amount for a period fixed by the Minister, if positive, in respect of the province or area. The Minister may distribute that net amount

(a) to the province;

(b) to persons that are prescribed persons, persons of a prescribed class or persons meeting prescribed conditions; or

Restriction

(3) Despite subsection (2), if the Minister is not authorized, by reason of section 150, to take any action described under subsection 150(1) in respect of an amount payable by a person under this Part, the amount is not to be distributed by the Minister under this section.

Distribution payment

(4) The amount of any distribution under subsection (2) is to be calculated in the manner determined by the Minister and may, subject to subsection (8), be paid by the Minister out of the Consolidated Revenue Fund at the times and in the manner that the Minister considers appropriate.

Recovery

(5) If, at any time, the total amount of distributions made under subsection (2) in respect of a province or area, taking into account any amount recovered in respect of those distributions before that time, exceeds the total of all net amounts in respect of the province or area at that time, the amount of that excess may be recovered

(a) if distributions were made to the province, despite any other provision of this Act or the Federal-Provincial Fiscal Arrangements Act, from any payment payable to that province under this Act or the Federal-Provincial Fiscal Arrangements Act; and

(b) if distributions were made to a person referred to in paragraph (2)(b), from any sum of money that may be due or payable by Her Majesty in right of Canada to that person under this Act or any other Act of Parliament.

Proportional recovery

(6) If distributions in respect of a province or area were made under subsection (2) to more than one person, any recovery in respect of a period fixed by the Minister from any of those persons is to be made in proportion of the distributions to that person of the total distributions made in respect of that province or area in respect of that period.

Manner of calculation

(7) The amount of any recovery under this section is to be calculated in the manner determined by the Minister.

Regulations

(8) The Governor in Council may make regulations

(a) prescribing the time and manner of paying any distribution under subsection (2); and

(b) generally to carry out the purposes of this section.

Division 8

Regulations

166 (1) The Governor in Council may make regulations

(a) prescribing anything that, by this Part, is to be prescribed or is to be determined or regulated by regulation;

(b) requiring any person to provide any information, including the person's name, address, registration number or any information relating to Part 2 that may be required to comply with this Part, to any class of persons required to make a return containing that information;

(d) requiring any class of persons to make returns respecting any class of information required in connection with the administration or enforcement of this Part;

(e) distinguishing among any class of persons, provinces, areas, facilities, property, activities, fuels, substances, materials or things; and

(f) generally to carry out the purposes and provisions of this Part.

Amendments to Part 1 of Schedule 1

(2) For the purpose of ensuring that the pricing of greenhouse gas emissions is applied broadly in Canada at levels that the Governor in Council considers appropriate, the Governor in Council may, by regulation, amend Part 1 of Schedule 1, including by adding, deleting, varying or replacing any item or table.

Factors

(3) In making a regulation under subsection (2), the Governor in Council may take into account any factor that the Governor in Council considers appropriate, including the stringency of provincial pricing mechanisms for greenhouse gas emissions.

Amendments to Schedule 2

(4) The Governor in Council may, by regulation, amend Schedule 2 respecting the application of the fuel charge under this Part including by adding, deleting, varying or replacing a table.

Effect

(5) A regulation made under this Part is to have effect from the date it is published in the Canada Gazette or at such time thereafter as may be specified in the regulation, unless the regulation provides otherwise and

(a) has a non-tightening effect only;

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

(c) is consequential on an amendment to this Part that is applicable before the date the regulation is published in the Canada Gazette;

(d) is in respect of rules described in paragraph 168(2)(f); or

(e) gives effect to a public announcement, in which case the regulation must not, except if any of paragraphs (a) to (d) apply, have effect before the date the announcement was made.

Incorporation by reference — limitation removed

167 The limitation set out in paragraph 18.1(2)(a) of the Statutory Instruments Act, to the effect that a document must be incorporated as it exists on a particular date, does not apply to any power to make regulations under this Part.

Definition of fuel charge system

168 (1) In this section, fuel charge system means the system under this Part, Part 1 of Schedule 1 and Schedule 2 providing for the payment and collection of charges levied under this Part and of amounts paid as or on account of charges under this Part and the provisions of this Part relating to charges under this Part or to rebates in respect of any such charges, or any such amounts, paid or deemed to be paid.

Fuel charge system regulations

(2) The Governor in Council may make regulations, in relation to the fuel charge system,

(a) prescribing rules in respect of whether, how and when the fuel charge system applies and rules in respect of other aspects relating to the application of that system, including rules deeming, in specified circumstances and for specified purposes, the status of anything to be different than what it would otherwise be, including when an amount under this Part became due or was paid, when fuel or a substance, material or thing was delivered, how and when an amount under this Part is required to be reported and accounted for and when any period begins and ends;

(b) prescribing rules in respect of whether, how and when a change in a rate, set out in any table in Schedule 2 for a type of fuel and for a province or area, applies and rules in respect of a change to another parameter affecting the application of the fuel charge system in relation to such a fuel or province or area, including rules deeming, in specified circumstances and for specified purposes, the status of anything to be different than what it would otherwise be, including when an amount under this Part became due or was paid, when fuel or a substance, material or thing was delivered, how and when an amount under this Part is required to be reported and accounted for and when any period begins and ends;

(c) prescribing rules in respect of whether, how and when a change to the provinces or areas listed in Part 1 of Schedule 1 or referenced in Schedule 2 applies and rules in respect of a change to another parameter affecting the application of the fuel charge system in relation to a province or area or to a type of fuel, including rules deeming, in specified circumstances and for specified purposes, the status of anything to be different than what it would otherwise be, including when an amount under this Part became due or was paid, when fuel or a substance, material or thing was delivered, how and when an amount under this Part is required to be reported and accounted for and when any period begins and ends;

(d) if an amount is to be determined in prescribed manner in relation to the fuel charge system, specifying the circumstances or conditions under which the manner applies;

(e) providing for rebates, adjustments or credits in respect of the fuel charge system;

(f) providing for rules allowing persons, which elect to have those rules apply, to have the provisions of this Part apply in a manner different from the manner in which those provisions would otherwise apply, including when an amount under this Part became due or was paid, when fuel or a substance, material or thing was delivered, how and when an amount under this Part is required to be reported or accounted for and when any period begins and ends;

(g) specifying circumstances and any terms or conditions that must be met for the payment of rebates in respect of the fuel charge system;

(h) prescribing amounts and rates to be used to determine any rebate, adjustment or credit that relates to, or is affected by, the fuel charge system, excluding amounts that would otherwise be included in determining any such rebate, adjustment or credit, and specifying circumstances under which any such rebate, adjustment or credit must not be paid or made;

(i) respecting information that must be included by a specified person in a written agreement or other document in respect of specified fuel or a specified substance, material or thing and prescribing charge-related consequences in respect of such fuel, substance, material or thing, and penalties, for failing to do so or for providing incorrect information;

(j) deeming, in specified circumstances, a specified amount of charge to be payable by a specified person, or a specified person to have paid a specified amount of charge, for specified purposes, as a consequence of holding fuel at a specified time;

(k) prescribing compliance measures, including anti-avoidance rules; and

(l) generally to effect the transition to, and implementation of, that system in respect of fuel or a substance, material, or thing and in respect of a province or area.

Fuel charge system regulations — general

(3) For the purpose of facilitating the implementation, application, administration and enforcement of the fuel charge system, the Governor in Council may make regulations

(a) adapting or modifying any provision of this Part, Part 1 of Schedule 1 or Schedule 2;

(b) defining, for the purposes of this Part, Part 1 of Schedule 1 or Schedule 2, or any provision of this Part, Part 1 of Schedule 1 or Schedule 2, words or expressions used in this Part, Part 1 of Schedule 1 or Schedule 2 including words or expressions defined in a provision of this Part, Part 1 of Schedule 1 or Schedule 2; and

(c) providing that a provision of this Part, Part 1 of Schedule 1 or Schedule 2, or a part of such a provision, does not apply.

Conflict

(4) If a regulation made under this Part in respect of the fuel charge system states that it applies despite any provision of this Part, in the event of a conflict between the regulation and this Part, the regulation prevails to the extent of the conflict.

Interpretation

Definitions

169 The following definitions apply in this Part.

analyst means an individual or a member of a class of individuals designated as an analyst under subsection 201(1). (analyste)

compliance period means a period specified in the regulations. (période de conformité)

compliance unit means a surplus credit that is issued under section 175 or paragraph 178(1)(b), a unit or credit that is recognized under the regulations as a compliance unit or an offset credit that is issued under the regulations. (unité de conformité)

covered facility means a facility, including a platform anchored at sea, that is located in a province or area that is set out in Part 2 of Schedule 1 and either

(a) meets the criteria set out in the regulations for that province or area; or

(b) is designated by the Minister under subsection 172(1). (installation assujettie)

enforcement officer means an individual or a member of a class of individuals designated as an enforcement officer under subsection 201(1). (agent de l'autorité)

greenhouse gas means a gas that is set out in Column 1 of Schedule 3. (gaz à effet de serre)

increased-rate compensation deadline means, in respect of a compliance period, the increased-rate compensation deadline specified for that period in the regulations. (délai de compensation à taux élevé)

Indigenous peoples of Canada has the meaning assigned by the definition aboriginal peoples of Canada in subsection 35(2) of the Constitution Act, 1982. (peuples autochtones du Canada)

Minister means the Minister of the Environment. (ministre)

organization has the same meaning as in section 2 of the Criminal Code. (organisation)

person means an individual or organization and includes Her Majesty in right of Canada or a province. (personne)

regular-rate compensation deadline means, in respect of a compliance period, the regular-rate compensation deadline specified for that period in the regulations. (délai de compensation à taux régulier)

Conversion into CO₂e tonnes

170 For the purposes of this Part, a quantity of a greenhouse gas, expressed in tonnes, is converted into carbon dioxide equivalent tonnes (in this Part referred to as "CO₂e tonnes") by multiplying that quantity by the global warming potential set out for the greenhouse gas in column 2 of Schedule 3.

DIVISION 1

Pricing Mechanism for Greenhouse Gas Emissions

Registration of Covered Facilities

Application for registration

171 (1) A person that is responsible for a covered facility must apply to the Minister for registration of that covered facility. The application must include the information specified by the Minister and be made in the time and manner specified by the Minister.

Registration

(2) If the Minister is satisfied that the applicant is a person responsible for the facility named in the application, that the facility is a covered facility and that the application meets the requirements of subsection (1), the Minister must register the covered facility and issue a covered facility certificate to the applicant.

Cancellation

(3) The Minister must cancel the registration and the covered facility certificate of a facility that ceases to be a covered facility or that was not a covered facility at the time of registration.

Notice setting out criteria

(4) If a notice referred to in subsection 194(1) sets out criteria respecting facilities and persons, a facility that meets the criteria is, for the purposes of this section, a covered facility as defined in section 169 and a person that meets the criteria is, for the purposes of this section, a person responsible for the facility.

Notice cancelled

(5) If a facility is registered as a result of the publication of a notice referred to in subsection 194(1) and that notice is cancelled before any regulations or orders referred to in it are made, the Minister must cancel the facility's registration and covered facility certificate.

Designation of facility as covered facility

172 (1) On request by a person that is responsible for a facility that is located in a province or area that is set out in Part 2 of Schedule 1, the Minister may, in accordance with the regulations, designate the facility as a covered facility. The request must include the information specified by the Minister and be made in the time and manner specified by the Minister.

Application for registration

(2) If the Minister designates a facility as a covered facility, the request under subsection (1) is deemed to be an application for registration under subsection 171(1) and the Minister must register the covered facility.

Cancellation of designation

(3) The Minister may, in accordance with the regulations, cancel the designation of a covered facility.

Reporting, Compensation and Compliance Units

Reporting requirement

173 For each compliance period, a person that is responsible for a covered facility must, in accordance with the regulations,

(a) submit to the Minister a report that sets out the information that is specified in the regulations with respect to the greenhouse gas emissions limit that applies to the covered facility and any other information that is specified in the regulations; and

(b) cause the report to be verified by a third party.

Compensation for excess emissions

174 (1) A person that is responsible for a covered facility that emits greenhouse gases in a quantity that exceeds the emissions limit that applies to the covered facility during a compliance period must, in accordance with the regulations, provide compensation for the excess emissions by the increased-rate compensation deadline.

Provision of compensation

(2) The compensation is to be provided, at a rate set out in subsection (3) or (4), by means of

(a) a remittance of compliance units to the Minister or a person specified in the regulations in lieu of the Minister;

(b) an excess emissions charge payment to Her Majesty in right of Canada; or

Regular rate

(3) If the compensation is provided by the regular-rate compensation deadline, the rate is

(a) one compliance unit for each CO₂e tonne that was emitted in excess of the emissions limit; or

(b) the excess emissions charge set out in column 2 of Schedule 4, for the calendar year in which the compliance period falls, for each CO₂e tonne that was emitted in excess of the emissions limit.

Increased rate

(4) If the compensation is not provided in full by the regular-rate compensation deadline, the rate for each CO₂e tonne that was emitted in excess of the emissions limit and for which no compensation was provided by that deadline is four times the rate set out in subsection (3).

Charge continued

(5) If the compliance period falls in a year that is subsequent to the last calendar year set out in Column 1 of Schedule 4, the excess emissions charge set out in column 2 for that last calendar year continues to apply for the purposes of paragraph (3)(b).

Issuance of surplus credits

175 If a covered facility emits greenhouse gases in a quantity that is below the emissions limit that applies to it during a compliance period, the Minister must, in accordance with the regulations, issue to a person that is responsible for the covered facility a number of surplus credits that is equal to the difference between that limit, expressed in CO₂e tonnes, and the number of CO₂e tonnes emitted.

Errors and omissions

176 (1) If, within five years after submitting a report under section 173, a person that is responsible for a covered facility becomes aware of an error or omission in the report, the person must notify the Minister in writing as soon as possible.

Corrected report

(2) If required by the regulations, the person must, in accordance with the regulations,

(a) submit a corrected report to the Minister; or

(b) submit a corrected report to the Minister and cause it to be verified by a third party.

Errors and omissions

177 (1) If, within five years after a report has been submitted under section 173 in respect of a covered facility, the Minister is of the opinion that there is an error or omission in the report, the Minister may require a person responsible for the covered facility to submit a corrected report and may require the person to cause it to be verified by a third party.

Compliance

(2) If the Minister requires a person to submit a corrected report or to submit a corrected report and cause it to be verified by a third party, the person must do so in accordance with the regulations.

Change in obligations

178 (1) If, as a result of a corrected report referred to in section 176 or 177, the difference between the quantity of the greenhouse gases emitted by a covered facility during a compliance period and the emissions limit that applied to the covered facility during that compliance period changes,

(a) a person that is responsible for the covered facility must, in accordance with the regulations, provide any compensation that is determined in accordance with the regulations; or

(b) the Minister may, in accordance with the regulations, issue to a person that is responsible for the covered facility a number of surplus credits that is determined in accordance with the regulations.

Compensation

(2) For the purposes of paragraph (1)(a), the rate for each CO₂e tonne must not exceed four compliance units or four times the excess emissions charge set out in column 2 of Schedule 4, for the calendar year in which the compliance period falls.

Retirement of compliance units

179 A compliance unit that is remitted under section 174, paragraph 178(1)(a) or subsection 181(2) or that is withdrawn under section 182 must not be used in any subsequent transaction and the Minister must ensure, in accordance with the regulations, that it is retired from circulation.

Suspension or revocation of compliance units

180 (1) The Minister may, in accordance with the regulations, suspend or revoke compliance units.

Voluntary cancellation of compliance units

(2) If the holder of an account in the tracking system referred to in section 185 requests, in accordance with the regulations, that a compliance unit in the account be cancelled, the Minister must cancel it.

No indemnification

(3) A person is not entitled to be indemnified for a suspended, revoked or cancelled compliance unit.

Issuance error or invalidity

181 (1) If the Minister determines that compliance units were issued in error or are no longer valid, the Minister may, in accordance with the regulations, require a person to remit the number of compliance units in question to the Minister or a person specified in the regulations in lieu of the Minister.

Compliance

(2) If the Minister requires a person to remit compliance units, the person must do so by a deadline specified by the Minister.

Payment in lieu

(3) In lieu of remitting compliance units, the person may make a payment to Her Majesty in right of Canada that is equal to the number of compliance units multiplied by the excess emissions charge set out in column 2 of Schedule 4, for the calendar year in which the Minister requires the person to remit the compliance units.

Recovery of Compensation

Ministerial power

182 If a covered facility emits greenhouse gases in excess of its emissions limit during a compliance period and compensation is not provided in full by the applicable deadline under section 174 or paragraph 178(1)(a), the Minister may, in accordance with the regulations, withdraw the balance owing in compliance units from any account in the tracking system referred to in section 185 that is linked to the covered facility.

Debts to Her Majesty

183 (1) The monetary value of the compensation owed for each CO₂e tonne emitted by a covered facility in excess of its emissions limit during a compliance period for which no compensation was provided by the applicable deadline under section 174 or paragraph 178(1)(a) and for which no withdrawals were made under section 182 constitutes a debt due to Her Majesty in right of Canada and may be recovered in any court of competent jurisdiction.

Limitation period

(2) No proceedings to recover the debt may be instituted more than five years after the day on which the debt becomes payable.

Certificate

184 (1) The Minister may issue a certificate certifying the unpaid amount of any debt referred to in subsection 183(1).

Registration

(2) Registration in a court of competent jurisdiction of a certificate issued under subsection (1) has the same effect as a judgment of that court for a debt of the amount specified in the certificate and all related registration costs.

Tracking System

Establishment and maintenance

185 If at least one province or area is set out in Part 2 of Schedule 1, the Minister must establish and maintain a system that tracks

(a) the issuance by the Minister of compliance units;

(b) the transfer, retirement, suspension, revocation and cancellation of those compliance units;

(d) any other transaction specified in the regulations.

Accounts

186 (1) A person that is responsible for a covered facility must open and maintain in the tracking system any accounts required by the regulations. Any other person may open and maintain accounts in the system in accordance with the regulations.

Ministerial powers

(2) The Minister may specify the time and manner for opening or closing an account, the information to be provided for those purposes and the conditions of use for accounts.

Closing of accounts

(3) The Minister may, in accordance with the regulations, close an account.

Records

Keeping records

187 (1) A person that is responsible for a covered facility or any other person that opens and maintains an account in the tracking system must keep and retain all records that are necessary to determine whether the person has complied with this Division.

Minister may specify information

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

Language and location of record

(3) A record must be kept and retained in Canada in accordance with the regulations and, unless otherwise authorized by the Minister, must be kept in English or in French.

Electronic records

(4) If a record is kept or retained in electronic form, the person that keeps the record must ensure that information in it is readable or perceivable so as to be usable for subsequent reference during the retention period required for the record.

General period for retention

(5) Records must be retained for a period of seven years after the end of the year to which they relate or for any other period specified in the regulations.

Demand by Minister

(6) If the Minister is of the opinion that it is necessary to do so, the Minister may, by registered letter or by a demand served personally, require a person referred to in subsection (1) to retain any records for a period that is specified by the Minister and the person must do so as required.

Permission for earlier disposal

(7) The Minister may, in writing, authorize a person referred to in subsection (1) to dispose of any records before the end of the period during which they are required to be retained.

Revenues

Distribution — charge payments

188 (1) The Minister of National Revenue must distribute revenues from excess emissions charge payments that are made under section 174 or 178 in relation to covered facilities that are located in a province or area. The Minister of National Revenue may distribute the revenues to

(a) that province;

(b) persons that are specified in the regulations or that meet criteria set out in the regulations; or

Distribution — subsection 181(3) payments

(2) The Minister of National Revenue may distribute revenues from payments that are made under subsection 181(3) to persons that are specified in the regulations or that meet criteria set out in the regulations.

Amount

(3) The amount of any revenues to be distributed under subsection (1) or (2) is to be calculated in the manner determined by the Minister of National Revenue.

Time and manner

(4) A distribution of revenues under subsection (1) or (2) is to be made, subject to the regulations, at the times and in the manner that the Minister of National Revenue considers appropriate and may, in accordance with the regulations, be made out of the Consolidated Revenue Fund.

Orders and Regulations

Amendments to Part 2 of Schedule 1

189 (1) For the purpose of ensuring that the pricing of greenhouse gas emissions is applied broadly in Canada at levels that the Governor in Council considers appropriate, the Governor in Council may, by order, amend Part 2 of Schedule 1 by adding, deleting or amending the name of a province or the description of an area.

Factors

(2) In making an order under subsection (1), the Governor in Council may take into account any factor that the Governor in Council considers appropriate, including the stringency of provincial pricing mechanisms for greenhouse gas emissions.

Exclusive economic zone and continental shelf

(3) For greater certainty, an area referred to in subsection (1) may include a part of the exclusive economic zone of Canada or the continental shelf of Canada.

Amendments to Schedule 3

190 (1) The Governor in Council may, by order, amend Schedule 3 by

(a) adding a gas to Column 1 and its global warming potential to column 2 or deleting a gas from Column 1 and its global warming potential from column 2; and

(b) amending the global warming potential set out in column 2 for a gas set out in Column 1.

Factors

(2) In making an order under subsection (1), the Governor in Council may take into account any factor that the Governor in Council considers appropriate, including any change in the reporting requirements under the United Nations Framework Convention on Climate Change, done in New York on May 9, 1992.

Amendments to Schedule 4

191 The Governor in Council may, by order, amend Schedule 4 by

(a) adding a calendar year to Column 1 and an excess emissions charge to column 2 for that year; and

(b) amending the excess emissions charge set out in column 2 for a calendar year set out in Column 1.

Regulations

192 The Governor in Council may make regulations for the purposes of this Division, including regulations

(a) defining facility;

(b) respecting covered facilities, including the circumstances under which they cease to be covered facilities;

(d) respecting designations and cancellations of designations under section 172;

(e) respecting compliance periods and the associated regular-rate compensation deadlines and increased-rate compensation deadlines;

(f) respecting the reports and verifications referred to in section 173 and subsections 176(2) and 177(2);

(g) respecting greenhouse gas emissions limits referred to in sections 173 to 175, subsection 178(1), section 182 and subsection 183(1);

(h) respecting the quantification of greenhouse gases that are emitted by a facility;

(i) respecting the circumstances under which greenhouse gases are deemed to have been emitted by a facility;

(j) respecting the methods, including sampling methods, and equipment that are to be used to gather information on greenhouse gas emissions and activities related to those emissions;

(k) respecting the compensation referred to in sections 174 and 178;

(l) respecting compliance units, including transfers of compliance units, the circumstances under which transfers of compliance units are prohibited and the recognition of units or credits issued by a person other than the Minister as compliance units;

(m) respecting the tracking system referred to in section 185 and the accounts in that system;

(n) providing for user fees;

(o) respecting the rounding of numbers;

(p) respecting the retention of records referred to in section 187; and

(q) respecting the correction or updating of information that has been provided under this Division.

Transitional measures

193 The Governor in Council may make regulations respecting transitional matters related to the deletion of the name of a province or the description of an area from Part 2 of Schedule 1 or to circumstances in which a facility ceases to be a covered facility, including regulations respecting the application of this Division during a portion of a compliance period.

Effect

194 (1) An order made under section 189, 190 or 191 and a regulation made under section 192 or 193 may have effect earlier than the day on which it is made if it so provides and it gives effect to measures referred to in a notice published by the Minister. However, the order or regulation must not have effect before the day on which the notice is published.

Statutory Instruments Act

(2) For greater certainty, a notice referred to subsection (1) is a regulation as defined in subsection 2(1) of the Statutory Instruments Act if, for the purpose of ensuring the early registration under section 171 of facilities as covered facilities, the notice sets out criteria respecting facilities and persons.

Regulations — offset credit system

195 The Governor in Council may make regulations establishing an offset credit system for projects that prevent greenhouse gases from being emitted or that remove greenhouse gases from the atmosphere, including regulations

(a) respecting the issuance by the Minister of offset credits to persons that are responsible for the projects;

(b) imposing requirements on those persons;

(d) respecting the keeping and retention of records; and

(e) providing for user fees.

Delegation

196 The Minister may delegate his or her powers, duties and functions under this Division, with the exception of the one set out in subsection 194(1), to any person.

DIVISION 2

Information and Samples

Purposes

197 (1) The Minister may exercise a power under this section for one or more of the following purposes:

(a) to assess the emission levels in Canada of greenhouse gases or other gases that contribute or could contribute to climate change;

(b) to determine whether measures to control those emissions are required and, if so, what measures are to be taken; and

Order

(2) The Minister may, by order, require any person that is described in the order

(a) to notify the Minister if, during a period specified in the order, the person is or was engaged in any activity related to gases specified in the order;

(b) to gather information on those gases, including

(i) information on a substance or product, including a fuel, that is related to those gases, and

(ii) plans, specifications, studies and information in respect of any equipment, facility or activity that is related to those gases;

(d) to use specified methods and equipment to gather the information and samples or to quantify gas emissions; and

(e) to provide any information on those gases or to provide any samples referred to in paragraph (c) to the Minister.

Other requirements

(3) The order may also

(a) require numbers to be rounded in accordance with a method specified in the order;

(b) require any information that must be provided to be verified by a third party in accordance with the order;

(c) require copies of any information that is provided — and any documents, calculations, measurements and other data on which the information is based — to be retained in a location specified in the order for a period specified in the order;

(d) require the updating, within a period specified in the order, of contact information for a person described in the order and any other information of an administrative nature that is specified in the order; and

(e) specify the form and manner in which information and samples are to be provided.

Compliance with order

(4) A person that is described in the order must comply with the order within the time specified in the order.

Extension of time

(5) On request in writing from a person that is described in the order, the Minister may extend the time within which the person is required to comply with it.

Regulations — information

198 (1) The Governor in Council may make regulations respecting the gathering of information on greenhouse gases or other gases that contribute or could contribute to climate change, on the emission of those gases and on activities related to those emissions and the provision of that information to the Minister, including regulations

(a) respecting the methods, including sampling methods, and equipment that are to be used to gather the information or to quantify gas emissions;

(b) respecting the rounding of numbers;

(d) respecting the correction or updating of any information that is provided under this Division;

(e) respecting the keeping and retention of records; and

(f) specifying the form and manner in which the information is to be provided.

Regulations — samples

(2) The Governor in Council may make regulations respecting the gathering of samples of greenhouse gases or other gases that contribute or could contribute to climate change or of samples of any substance or product, including a fuel, that is related to those gases and the provision of those samples to the Minister, including regulations

(a) respecting the sampling methods and equipment that are to be used to gather the samples; and

(b) specifying the form and manner in which the samples are to be provided.

Errors and omissions

199 (1) If, within five years after the day on which a person provides information under this Division, the Minister is of the opinion that there is an error or omission in that information, the Minister may require the person to provide corrected information and may require the person to cause the corrected information to be verified by a third party.

Compliance

(2) If the Minister requires a person to provide corrected information or to cause corrected information to be verified by a third party, the person must do so by a deadline specified by the Minister.

DIVISION 3

Administration and Enforcement

Interpretation

Definitions

200 The following definitions apply in this Division.

conveyance includes any vehicle, ship or aircraft. (moyen de transport)

dwelling-house has the meaning assigned by section 2 of the Criminal Code and includes, for greater certainty, living quarters on a platform anchored at sea. (maison d'habitation)

place includes any platform anchored at sea or conveyance. (lieu)

Designation of Enforcement Officers and Analysts

Designation

201 (1) The Minister may designate individuals or classes of individuals whom the Minister considers qualified as enforcement officers or analysts for the purposes of the administration and enforcement of this Part.

Production of certificate of designation

(2) Every enforcement officer or analyst must be furnished with a certificate of designation as an enforcement officer or analyst, as the case may be, and on entering any place referred to in subsection 203(1) must, if so requested, produce the certificate to the person in charge of the place.

Powers of enforcement officers

(3) For the purposes of this Part, enforcement officers have all the powers of a peace officer, but the Minister may specify limits on those powers when designating any individuals or class of individuals.

Exclusive economic zone and continental shelf

(4) Every power that may be exercised or every duty or function that may be performed by an enforcement officer or an analyst under this Part may be exercised or performed in the exclusive economic zone of Canada or in the waters above the continental shelf of Canada.

Immunity

202 No action or other proceeding of a civil nature may be brought against an enforcement officer or an analyst in respect of anything that is done or omitted to be done in good faith while exercising their powers or performing their duties or functions under this Part.

Powers

Authority to enter

203 (1) An enforcement officer who has reasonable grounds to believe that anything to which this Part applies — including a book, record, piece of electronic data or other document — is located in a place or that an activity regulated by this Part is conducted in a place, may, for the purpose of verifying compliance with this Part, enter the place and require any individual to be present.

Powers

(2) The enforcement officer may, for that purpose,

(a) examine anything that is found in the place;

(b) open and examine any receptacle or package found in the place;

(d) take samples of anything to which this Part applies;

(e) conduct any tests or take any measurements;

(f) take photographs and make recordings or sketches;

(g) order the owner or person in charge of the place or a person at the place to establish their identity to the enforcement officer's satisfaction;

(h) order the owner or person in charge of the place or a person in the place to stop or start an activity;

(i) use or cause to be used any computer system or means of communication at the place to examine any data contained in or available to the computer system or means of communication;

(j) cause a record to be produced from the data in the form of a printout or other intelligible output;

(k) reproduce any record or cause it to be reproduced;

(l) order the owner or a person having possession, care or control of anything in the place to not move it, or to restrict its movement;

(m) use or direct any person to operate or to cease to operate any system or equipment — including any system or equipment for measuring greenhouse gas emissions — in the place;

(n) take a printout or other output for examination or copying;

(o) use or cause to be used any copying equipment in the place to make copies of the record; and

(p) prohibit or limit access to all or part of the place.

Disposition of samples

(3) An enforcement officer may dispose of a sample taken under paragraph (2)(d) in any manner that the enforcement officer considers appropriate.

Analysts

(4) An enforcement officer who enters a place under subsection (1) may be accompanied by an analyst. The accompanying analyst may enter the place and exercise any of the powers referred to in paragraphs (2)(a) to (f) and may use any system or equipment — including any system or equipment for measuring greenhouse gas emissions — in the place.

Stopping and detaining conveyances

(5) For the purpose of entering a place referred to in subsection (1) that is a conveyance, an enforcement officer may, at any reasonable time, direct that the conveyance be stopped — or be moved, by the route and in the manner that the enforcement officer may specify, to a place specified by the enforcement officer — and the enforcement officer may, for a reasonable time, detain the conveyance.

Enforcement officer and analyst to receive accommodation

(6) An enforcement officer who travels to a platform anchored at sea for the purpose of entering it under subsection (1), and any analyst who accompanies the enforcement officer, must be carried to and from the platform free of charge and the person in charge of the platform must provide the enforcement officer and analyst with suitable accommodation and food free of charge.

Warrant to enter dwelling-house

204 (1) If a place referred to in subsection 203(1) is a dwelling-house, an enforcement officer may enter it without the occupant's consent only under the authority of a warrant issued under subsection (2).

Authority to issue warrant

(2) On ex parte application, a justice of the peace may issue a warrant authorizing an enforcement officer to enter a dwelling-house — and authorizing any other person named in the warrant to accompany the enforcement officer and to exercise any power referred to in section 203 that is specified in the warrant — if the justice is satisfied by information on oath that

(a) the dwelling-house is a place referred to in subsection 203(1);

(b) entry to the dwelling-house is necessary for a purpose related to verifying compliance with this Part; and

(c) entry was refused by the occupant or there are reasonable grounds to believe that entry will be refused by, or that consent to entry cannot be obtained from, the occupant.

Conditions in warrant

(3) A warrant issued under this section may contain any conditions that the justice of the peace considers appropriate.

Production of documents and samples

205 (1) For the purpose of verifying compliance with this Part, the Minister may, by registered letter or by a demand served personally, require any person to produce at a place specified by the Minister anything referred to in paragraph 203(2)(c) or any samples referred to in paragraph 203(2)(d) within any reasonable time and in any reasonable manner that may be stipulated in the letter or demand.

Compliance

(2) Any person that is required to produce anything under subsection (1) must, despite any other law to the contrary, do so as required.

Assistance to Enforcement Officers and Analysts

Entry on private property

206 While exercising powers or performing duties or functions under this Part, enforcement officers and analysts, and any persons accompanying them, may enter private property — other than a dwelling-house — and pass through it in order to gain entry to a place referred to in subsection 203(1). For greater certainty, they are not liable for doing so.

Assistance

207 If an enforcement officer or analyst enters a place referred to in subsection 203(1), the owner or person in charge of the place and every person found in it must

(a) give the enforcement officer or analyst all reasonable assistance to enable them to perform duties and functions under this Part; and

(b) provide the enforcement officer or analyst with any information that the enforcement officer or analyst may reasonably require for the purposes of this Part.

False or misleading statements

208 A person must not knowingly make any false or misleading statement, either orally or in writing, to an enforcement officer or analyst who is exercising powers or performing duties and functions under this Part.

Obstruction

209 A person must not obstruct or hinder an enforcement officer or analyst who is exercising powers or performing duties and functions under this Part.

Disposition of Things Seized

Custody of things seized

210 (1) Subject to subsections (2) and (3), if an enforcement officer seizes a thing under section 489 of the Criminal Code,

(a) sections 489.1 and 490 of the Criminal Code apply; and

(b) the enforcement officer, or any person that the officer may designate, must retain custody of the thing subject to any order made under section 490 of the Criminal Code.

Forfeiture if ownership not ascertainable

(2) If the lawful ownership of or entitlement to the seized thing cannot be ascertained within 30 days after its seizure, the thing or any proceeds of its disposition are forfeited to Her Majesty in right of Canada.

Abandonment

(3) The owner of the seized thing may abandon it to Her Majesty in right of Canada.

Disposition by Minister

211 Any thing that has been forfeited or abandoned under this Part is to be dealt with and disposed of as the Minister may direct.

Liability for costs

212 The lawful owner and any person lawfully entitled to possession of any thing seized, detained, forfeited or abandoned under this Part or under the Criminal Code and who has been found guilty of an offence under this Part in relation to that thing, are jointly and severally, or solidarily, liable for all the costs of entry to a place, seizure, detention, forfeiture, abandonment or disposition incurred by Her Majesty in excess of any proceeds of disposition of the thing that have been forfeited to Her Majesty under this Part or the Criminal Code.

Jurisdiction of Justices and Judges — Exclusive Economic Zone of Canada and Waters Above the Continental Shelf of Canada

Jurisdiction of justices and judges

213 A justice or judge in any territorial division in Canada has jurisdiction to exercise powers or perform duties or functions under this Part in relation to the exercise of powers or performance of duties or functions by an enforcement officer or analyst in the exclusive economic zone of Canada or the waters above the continental shelf of Canada.

Compliance Orders

Definitions

214 The following definitions apply in sections 215 to 223.

Chief Review Officer means the review officer appointed as Chief Review Officer under subsection 244(1) of the Canadian Environmental Protection Act, 1999 and includes any review officer designated under subsection 244(3) of that Act to perform the functions of the Chief Review Officer. (réviseur-chef)

order means an order issued under section 215. (ordre)

Order

215 (1) If an enforcement officer believes on reasonable grounds that there is or is likely to be a contravention of this Part, they may issue an order directing a person to

(a) stop doing something that is or is likely to be in contravention of this Part or cause it to be stopped;

(b) take any measure that is necessary in order to comply with this Part or to mitigate the effects of non-compliance; and

(c) take any other measure that the enforcement officer considers necessary to facilitate compliance with the order including

(i) maintaining records on any relevant matter,

(ii) reporting periodically to the enforcement officer, and

(iii) submitting to the enforcement officer any information, proposal or plan specified by the enforcement officer and setting out any action to be taken by the person with respect to the subject matter of the order.

Notice

(2) An order must be provided in the form of a written notice and must set out

(a) the name of each person to whom it is directed;

(b) the provision of this Part or the regulations that is alleged to have been or that is likely to be contravened;

(d) whatever it is to be stopped or the measures to be taken;

(e) the time or the day when each measure is to begin or the period during which it is to be carried out;

(f) subject to subsection (3), the duration of the order;

(g) a statement that a request for a review may be made to the Chief Review Officer; and

(h) the period within which a request for a review may be made.

Duration of order

(3) The maximum duration of an order is 180 days.

Statutory Instruments Act

(4) An order is not a statutory instrument for the purposes of the Statutory Instruments Act.

Notice of intent

216 (1) An enforcement officer must, before issuing an order,

(a) provide an oral or a written notice of the intent of the enforcement officer to issue the order to every person to whom the order will be directed; and

(b) allow a reasonable opportunity in the circumstances for the person to make oral representations.

Contents of notice of intent

(2) A notice of intent to issue an order must include

(a) a statement of the purpose of the notice;

(b) a reference to the statutory authority under which the order will be issued;

(d) a statement that the person to whom the order will be directed may make oral representations to the enforcement officer within the period stated in the notice.

Compliance with the order

217 (1) A person to whom an order is directed must, on receipt of the order or a copy of it, comply with the order.

No bar to proceedings

(2) The issuance of or compliance with an order in respect of a person's alleged contravention of this Part or the regulations is not a bar to any proceedings against the person under this Part or under any other Act in relation to the alleged contravention.

Intervention by enforcement officer

218 (1) If any person to whom an order is directed fails to take any measures specified in the order, an enforcement officer may take the measures or authorize a third party to take the measures.

Access to property

(2) An enforcement officer or third party that is authorized to take measures under subsection (1) may enter and have access to any place or property, other than a dwelling-house, and may do any reasonable things that may be necessary in the circumstances.

Immunity

(3) If a third party is authorized to take measures under subsection (1), no action or other proceeding of a civil nature may be brought against the third party in respect of any act or omission committed in good faith in taking those measures.

Recovery of reasonable costs and expenses by Her Majesty

219 (1) Her Majesty in right of Canada may recover the costs and expenses of and incidental to taking any measures under subsection 218(1) from any person to whom the order is directed.

Reasonably incurred

(2) The costs and expenses referred to in subsection (1) must only be recovered to the extent that they can be established to have been reasonably incurred in the circumstances.

Liability

(3) If the order is directed to more than one person, they are jointly and severally, or solidarily, liable for the costs and expenses referred to in subsection (1).

Procedure

(4) A claim under this section may be sued for and recovered by Her Majesty in right of Canada with costs in proceedings brought or taken in respect of the claim in the name of Her Majesty in right of Canada in any court of competent jurisdiction.

Recourse or indemnity

(5) This section does not limit or restrict any right of recourse or indemnity that a person may have against any other person.

Limitation period

(6) If events giving rise to a claim under this section occur, no proceedings in respect of the claim may be instituted after five years from the date on which the events occur or came to the knowledge of the Minister, whichever is later.

Minister's certificate

(7) A document purporting to have been issued by the Minister certifying the day on which the events giving rise to a claim under this section came to the knowledge of the Minister must be received in evidence and, in the absence of any evidence to the contrary, the document must be considered as proof of that fact without proof of the signature or of the official character of the person appearing to have signed the document.

Variation or cancellation of order

220 (1) At any time before a notice requesting a review of an order is received by the Chief Review Officer, the enforcement officer may

(a) amend or suspend a condition of the order, or add condition to, or delete a condition from, the order;

(b) cancel the order;

(d) extend the duration of the order up to the maximum duration set out in subsection 215(3).

Notice of intent

(2) The enforcement officer must, before exercising a power under paragraph (1)(a) or (d),

(a) provide an oral or a written notice of the intent of the enforcement officer to do so to every person to whom the order is directed; and

(b) allow a reasonable opportunity in the circumstances for the person to make oral representations.

Contents of notice of intent

(3) A notice of intent to exercise a power under paragraph (1)(a) or (d) must include

(a) a statement of the purpose of the notice;

(b) a reference to the statutory authority under which the power will be exercised;

(d) a statement that the person to whom the order is directed may make oral representations to the enforcement officer within the period stated in the notice.

Regulations

221 The Minister may make regulations respecting reporting under subparagraph 215(1)(c)(ii) and respecting representations made to enforcement officers under subsection 216(1) or 220(2).

Request for review

222 (1) Any person to whom an order is directed may, by notice in writing given to the Chief Review Officer within 30 days after receipt by the person of the written order or a copy of it, make a request to the Chief Review Officer for a review of the order.

Extension of period for request

(2) The Chief Review Officer may extend the period within which a request for a review may be made if, in the Chief Review Officer's opinion, it is in the public interest to do so.

Review of order

223 Sections 257 to 264 and 266 to 271 of the Canadian Environmental Protection Act, 1999 apply, with any modifications that the circumstances require, to a review of any order.

Immunity

224 No action or other proceeding of a civil nature may be brought against a review officer in respect of anything that is done or omitted to be done in good faith in the exercise of their powers or the performance of their duties and functions under section 223.

Voluntary Reports

Voluntary reports

225 (1) If a person has knowledge of the commission or reasonable likelihood of the commission of an offence under this Part, but is not required to report the matter under this Part, the person may report any information relating to the offence or likely offence to an enforcement officer or any person to whom a report may be made under this Part.

Request for confidentiality

(2) The person making the report may request that their identity, and any information that could reasonably be expected to reveal their identity, not be disclosed.

Requirement for confidentiality

(3) A person must not disclose or cause to be disclosed the identity of a person who makes a request under subsection (2) or any information that could reasonably be expected to reveal their identity unless the person authorizes the disclosure in writing.

Employee protection

(4) Despite any other Act of Parliament, an employer must not dismiss, suspend, demote, discipline, harass or otherwise disadvantage an employee, or deny an employee a benefit of employment, with the intent to retaliate against the employee because the employee has

(a) made a report under subsection (1);

(b) acting in good faith and on the basis of reasonable belief, refused or stated an intention of refusing to do anything that is an offence under this Part; or

(c) acting in good faith and on the basis of reasonable belief, done or stated an intention of doing anything that is required to be done by or under this Part.

Application for Investigation of Offences

Application for investigation by Minister

226 (1) An individual who is resident in Canada and at least 18 years of age may apply to the Minister for an investigation of any offence under this Part that the individual alleges has occurred.

Statement to accompany application

(2) The application must include a solemn affirmation or declaration

(a) stating the name and address of the applicant;

(b) stating that the applicant is at least 18 years old and a resident of Canada;

(d) containing a concise statement of the evidence supporting the allegations of the applicant.

Form

(3) The Minister may, by regulation, prescribe the form in which an application under this section is required to be made.

Investigation by Minister

227 The Minister must acknowledge receipt of the application within 20 days after the receipt and must investigate all matters that he or she considers necessary to determine the facts relating to the alleged offence.

Progress reports

228 Starting on the day on which the Minister acknowledges receipt of the application, he or she must report to the applicant every 90 days on the progress of the investigation and the action, if any, that the Minister has taken or proposes to take, and the Minister must include in the report an estimate of the time required to complete the investigation or to implement the action. A report is not however required if the investigation is discontinued before the end of the 90 days.

Sending evidence to Attorney General of Canada

229 At any stage of an investigation, the Minister may send any documents or other evidence to the Attorney General of Canada for consideration of whether an offence has been or is about to be committed under this Part and for any action that the Attorney General may wish to take.

Discontinuation of investigation

230 (1) The Minister may discontinue an investigation if he or she is of the opinion that

(a) the alleged offence does not require further investigation; or

(b) the investigation does not substantiate the alleged offence.

Report

(2) If an investigation is discontinued, the Minister must prepare a report in writing that describes the information obtained during the investigation and states the reasons for its discontinuation and he or she must send a copy of the report to the applicant and to any person whose conduct was investigated. A copy of the report that is sent to a person whose conduct was investigated must not disclose the name or address of the applicant or any other personal information about them.

Injunctions

231 (1) If, on the application of the Minister, it appears to a court of competent jurisdiction that a person has done or is about to do or is likely to do any act or thing constituting or directed toward the commission of an offence under this Part, the court may issue an injunction ordering any person named in the application

(a) to refrain from doing any act or thing that it appears to the court may constitute or be directed toward the commission of an offence under this Part; or

(b) to do any act or thing that it appears to the court may prevent the commission of an offence under this Part.

Notice

(2) At least 48 hours before the injunction is issued, notice of the application must be served on persons named in the application, unless the urgency of the situation is such that the delay involved in serving the notice would not be in the public interest.

DIVISION 4

Offences and Punishment

Offences

232 (1) Every person commits an offence who

(a) contravenes section 208 or subsection 217(1) or 225(4);

(b) knowingly contravenes section 209;

(d) contravenes an order of a court made under this Part;

(e) knowingly, with respect to any matter related to this Part, provides any person with any false or misleading information or samples;

(f) knowingly, with respect to any matter related to this Part, files a document that contains false or misleading information; or

(g) knowingly, destroys, alters, mutilates, conceals or otherwise disposes of any records that are kept and retained under this Part.

Penalty — individuals

(2) Every individual who commits an offence under subsection (1) is liable,

(a) on conviction on indictment,

(i) for a first offence, to a fine of not less than $15,000 and not more than $1,000,000 or to imprisonment for a term of not more than three years, or to both, and

(ii) for a second or subsequent offence, to a fine of not less than $30,000 and not more than $2,000,000 or to imprisonment for a term of not more than three years, or to both; or

(b) on summary conviction,

(i) for a first offence, to a fine of not less than $5,000 and not more than $300,000 or to imprisonment for a term of not more than six months, or to both, and

(ii) for a second or subsequent offence, to a fine of not less than $10,000 and not more than $600,000 or to imprisonment for a term of not more than six months, or to both.

Penalty — other persons

(3) Every person, other than an individual or an organization referred to in subsection (4), that commits an offence under subsection (1) is liable,

(a) on conviction on indictment,

(i) for a first offence, to a fine of not less than $500,000 and not more than $6,000,000, and

(ii) for a second or subsequent offence, to a fine of not less than $1,000,000 and not more than $12,000,000; or

(b) on summary conviction,

(i) for a first offence, to a fine of not less than $100,000 and not more than $4,000,000, and

(ii) for a second or subsequent offence, to a fine of not less than $200,000 and not more than $8,000,000.

Penalty — small revenue organizations

(4) Every organization that commits an offence under subsection (1) and that the court determines under section 234 to be a small revenue organization is liable,

(a) on conviction on indictment,

(i) for a first offence, to a fine of not less than $75,000 and not more than $4,000,000, and

(ii) for a second or subsequent offence, to a fine of not less than $150,000 and not more than $8,000,000; or

(b) on summary conviction,

(i) for a first offence, to a fine of not less than $25,000 and not more than $2,000,000, and

(ii) for a second or subsequent offence, to a fine of not less than $50,000 and not more than $4,000,000.

Offences

233 (1) Every person commits an offence who

(a) contravenes any provision of this Part, other than a provision the contravention of which is an offence under paragraph 232(1)(a);

(b) contravenes any provision of a regulation made under this Part, other than a provision the contravention of which is an offence under paragraph 232(1)(c);

(c) with respect to any matter related to this Part, provides any person with any false or misleading information or samples; or

(d) with respect to any matter related to this Part, files a document that contains false or misleading information.

Penalty — individuals

(2) Every individual who commits an offence under subsection (1) is liable,

(a) on conviction on indictment,

(i) for a first offence, to a fine of not more than $100,000, and

(ii) for a second or subsequent offence, to a fine of not more than $200,000; or

(b) on summary conviction,

(i) for a first offence, to a fine of not more than $25,000, and

(ii) for a second or subsequent offence, to a fine of not more than $50,000.

Penalty — other persons

(3) Every person, other than an individual or a organization referred to in subsection (4), that commits an offence under subsection (1) is liable,

(a) on conviction on indictment,

(i) for a first offence, to a fine of not more than $500,000, and

(ii) for a second or subsequent offence, to a fine of not more than $1,000,000; or

(b) on summary conviction,

(i) for a first offence, to a fine of not more than $250,000, and

(ii) for a second or subsequent offence, to a fine of not more than $500,000.

Penalty — small revenue organizations

(4) Every organization that commits an offence under subsection (1) and that the court determines under section 234 to be a small revenue organization is liable,

(a) on conviction on indictment,

(i) for a first offence, to a fine of not more than $250,000, and

(ii) for a second or subsequent offence, to a fine of not more than $500,000; or

(b) on summary conviction,

(i) for a first offence, to a fine of not more than $50,000, and

(ii) for a second or subsequent offence, to a fine of not more than $100,000.

Order — provision of compensation

(5) If a person is found guilty of contravening subsection 174(1) or paragraph 178(1)(a), the court must, in addition to any penalty that may be imposed under this section, order the offender to provide compensation, at the rates set out in subsection 174(4), for the excess emissions for which no compensation was provided and for which no compliance units were withdrawn.

Determination of small revenue organization status

234 For the purposes of sections 232 and 233, a court may determine an organization to be a small revenue organization if the court is satisfied that the organization's gross revenues for the 12 months immediately before the day on which the subject matter of the proceedings arose — or, if it arose on more than one day, for the 12 months immediately before the first day on which the subject matter of the proceedings arose — were not more than $5,000,000.

Relief from minimum fine

235 The court may impose a fine that is less than the minimum amount provided for in subsection 232(2), (3) or (4) if it is satisfied, on the basis of evidence submitted to the court, that the minimum fine would cause undue financial hardship. The court must provide reasons if it imposes a fine that is less than the minimum amount provided for in any of those subsections.

Deeming — second and subsequent offence

236 (1) For the purposes of subsections 232(2) to (4) and 233(2) to (4), a conviction for a particular offence under this Part is deemed to be a conviction for a second or subsequent offence if the court is satisfied that the offender has been previously convicted — under any Act of Parliament, or any Act of the legislature of a province, that relates to the control or pricing of greenhouse gas emissions — of a substantially similar offence.

Application

(2) Subsection (1) applies only to previous convictions on indictment and to previous convictions on summary conviction, and to previous convictions under any similar procedure under any Act of the legislature of a province.

Additional fine

237 If a person is convicted of an offence and the court is satisfied that, as a result of the commission of the offence, the person acquired any property, benefit or advantage, the court must order the offender to pay an additional fine in an amount equal to the court's estimation of the value of that property, benefit or advantage. The additional fine may exceed the maximum amount of any fine that may otherwise be imposed under this Part.

Notice to shareholders

238 If a corporation that has shareholders is convicted of an offence under this Part, the court must make an order directing the corporation to notify its shareholders, in the manner and within the time directed by the court, of the facts relating to the commission of the offence and of the details of the punishment imposed.

Limitation period

239 No proceedings by way of summary conviction in respect of an offence under this Part may be instituted more than five years after the day on which the subject matter of the proceedings arose, unless the prosecutor and the defendant agree that they may be instituted after the five years.

Offence for each tonne

240 If the offence of contravening subsection 174(1) or paragraph 178(1)(a) is committed, the person that committed the offence is liable to be convicted for a separate offence for each CO₂e tonne of a greenhouse gas that is emitted over the applicable emissions limit for which no compensation is provided by the increased-rate compensation deadline.

Regulations

241 The Governor in Council may, by regulation, prescribe the manner in which the proceeds or any part of the proceeds resulting from the payment of a fine or the execution of an order in relation to an offence under this Part must be distributed in order to reimburse any person, government or body that has commenced the proceedings in respect of the offence for costs incurred by that person, government or body in respect of the prosecution of the offence.

Liability of senior officers

242 (1) If an organization commits an offence under this Part, a senior officer of the organization who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence, and is liable on conviction to the penalty provided for by this Part for an individual in respect of the offence committed by the organization, whether or not the organization has been prosecuted.

Definition of senior officer

(2) In this section, senior officer means a director, partner, employee, member, agent, mandatary or contractor who plays an important role in the establishment of an organization's policies or is responsible for managing an important aspect of its activities and, in the case of a corporation, includes its chief executive officer and its chief financial officer.

Proof of offence

243 In any prosecution of an offence under this Part, other than an offence of contravening section 208 or subsection 225(4) or an offence under any of paragraphs 232(1)(b) and (e) to (g), it is sufficient proof of the offence to establish that it was committed by a director, partner, employee, member, agent, mandatary or contractor of the accused organization, whether or not they are identified or prosecuted for the offence.

Defence

244 A person must not be found guilty of an offence under this Part, other than an offence of contravening section 208 or subsection 225(4) or an offence under any of paragraphs 232(1)(b) and (e) to (g), if the person establishes that they exercised all due diligence to prevent its commission.

Certificate of analyst

245 (1) Subject to subsections (2) and (3), a certificate of an analyst that states the result of an analysis or examination and includes any related statement is admissible in evidence in any prosecution for an offence under this Part and, in the absence of evidence to the contrary, is proof of the statements contained in the certificate without proof of the signature or the official character of the person appearing to have signed the certificate.

Attendance of analyst

(2) The party against whom a certificate of an analyst is produced may, with leave of the court, require the attendance of the analyst for the purposes of cross-examination.

Notice

(3) A certificate of an analyst must not be received in evidence unless the party intending to produce it has given to the party against whom it is intended to be produced reasonable notice of that intention together with a copy of the certificate.

Regulations

246 The Governor in Council may, by regulation, designate provisions of regulations made under this Part for the purposes of paragraph 232(1)(c).

Sentencing

Fundamental purpose

247 The fundamental purpose of sentencing for offences under this Part is to contribute — in light of the risks posed by climate change to the environment, including its biological diversity, to human health and safety and to economic prosperity — to respect for laws related to the pricing of greenhouse gas emissions through the imposition of just sanctions that have as their objectives

(a) the deterrence of the offender and any other person from committing offences under this Part;

(b) the denunciation of the unlawful conduct; and

Principles

248 (1) In addition to the principles and factors that the court is otherwise required to consider, including those set out in sections 718.1 to 718.21 of the Criminal Code, the court must consider the following principles when sentencing a person that is convicted of an offence under this Part:

(a) the amount of the fine should be increased to account for every aggravating factor associated with the offence, including the aggravating factors set out in subsection (2); and

(b) the amount of the fine should reflect the gravity of each aggravating factor associated with the offence.

Aggravating factors

(2) The aggravating factors are the following:

(a) the offender committed the offence intentionally or recklessly;

(b) the offender failed to take reasonable steps to prevent the commission of the offence despite having the financial means to do so;

(c) by committing the offence or failing to take action to prevent its commission, the offender increased revenue or decreased costs or intended to increase revenue or decrease costs;

(d) the offender committed the offence despite having been warned by an enforcement officer of the circumstances that subsequently became the subject of the offence;

(e) the offender has a history of non-compliance with federal or provincial legislation that relates to the control or pricing of greenhouse gas emissions; and

(f) after the commission of the offence, the offender

(i) attempted to conceal its commission,

(ii) failed to take prompt action to prevent, mitigate or remediate its effects, or

(iii) failed to take prompt action to reduce the risk of committing similar offences in the future.

Absence of aggravating factor

(3) The absence of an aggravating factor set out in subsection (2) is not a mitigating factor.

Reasons

(4) If the court is satisfied of the existence of one or more of the aggravating factors set out in subsection (2) but decides not to increase the amount of the fine because of that factor, the court must give reasons for that decision.

Orders of court

249 (1) If an offender has been convicted of an offence under this Part, in addition to any other punishment that may be imposed under this Part, the court may, having regard to the nature of the offence and the circumstances surrounding its commission, make an order having any or all of the following effects:

(a) prohibiting the offender from doing any act or engaging in any activity that may result in the continuation or repetition of the offence;

(b) directing the offender to implement a greenhouse gas emissions control or reduction system that meets a recognized Canadian or international standard;

(c) directing the offender to have an audit conducted by a person of a class and at the times specified by the court and directing the offender to remedy any deficiencies revealed during the audit;

(d) directing the offender to pay to Her Majesty in right of Canada an amount of money that the court considers appropriate for the purpose of promoting the control or reduction of greenhouse gas emissions or mitigating the effects of climate change caused by those emissions;

(e) directing the offender to publish, in the manner specified by the court, the facts relating to the commission of the offence and the details of the punishment imposed, including any orders made under this subsection;

(f) directing the offender to notify, at the offender's own cost and in the manner specified by the court, any person aggrieved or affected by the offender's conduct of the facts relating to the commission of the offence and of the details of the punishment imposed, including any orders made under this subsection;

(g) directing the offender to post any bond or pay any amount of money into court that will ensure compliance with any order made under this section;

(h) directing the offender to submit to the Minister, on application by the Minister made within three years after the date of conviction, any information with respect to the offender's activities that the court considers appropriate and just in the circumstances;

(i) directing the offender to compensate any person, monetarily or otherwise, in whole or in part, for the cost of any remedial or preventive action taken, caused to be taken or to be taken as a result of the act or omission that constituted the offence, including costs of assessing appropriate remedial or preventive action;

(j) directing the offender to perform community service, subject to any reasonable conditions that may be imposed in the order;

(k) directing the offender to pay, in the manner prescribed by the court, an amount for the purpose of conducting research into climate change;

(l) directing the offender to pay, in the manner prescribed by the court, an amount to groups concerned with climate change — including groups concerned with the effects of climate change on the Indigenous peoples of Canada and on northern, coastal or remote communities — to assist in their work;

(m) directing the offender to pay, in the manner prescribed by the court, an amount to an educational institution including for scholarships for students enrolled in studies related to climate change;

(n) requiring the offender to comply with any other conditions that the court considers appropriate in the circumstances for securing the offender's good conduct and for deterring the offender and any other person from committing offences under this Part;

(o) requiring the offender to remit compliance units to the Minister or any other person; and

(p) prohibiting the offender from entering into transactions involving compliance units during any period that the court considers appropriate.

Publication

(2) If an offender fails to comply with an order made under paragraph (1)(e), the Minister may, in the manner that the court directed the offender to do so, publish the facts relating to the commission of the offence and the details of the punishment imposed and recover the costs of publication from the offender.

Debt due to Her Majesty

(3) If the court makes an order under paragraph (1)(d) or (i) directing an offender to pay an amount to Her Majesty in right of Canada, or if the Minister incurs publication costs under subsection (2), the amount or the costs, as the case may be, constitute a debt due to Her Majesty in right of Canada and may be recovered in any court of competent jurisdiction.

Enforcement

(4) If the court makes an order under subsection (1) directing an offender to pay an amount to a person other than to Her Majesty in right of Canada and the amount is not paid without delay, the person may, by filing the order, enter as a judgment, in the superior court of the province in which the trial was held, the amount ordered to be paid, and that judgment is enforceable against the offender in the same manner as if it were a judgment rendered against the offender in that court in civil proceedings.

Retirement of compliance units

(5) If the court makes an order under paragraph (1)(o), any compliance unit that is remitted to the Minister in accordance with the order is retired from circulation.

Coming into force and duration

(6) An order made under subsection (1) comes into force on the day on which it is made or on any other day that the court may determine and must not continue in force for more than three years after that day unless the court provides otherwise in the order.

Suspended sentence

250 (1) If a person is convicted of an offence and the court suspends the passing of sentence under paragraph 731(1)(a) of the Criminal Code, the court may, in addition to any probation order made under that Act, make an order containing one or more of the prohibitions, directions or requirements referred to in subsection 249(1).

Imposition of sentence

(2) If the person does not comply with the order or is convicted of another offence within three years after the order is made, the court may, on the application of the prosecution, impose any sentence that could have been imposed if the passing of sentence had not been suspended.

Application of fines

251 (1) Subject to regulations made under section 241, all fines received by the Receiver General in respect of the commission of an offence under this Part or any amount received in accordance with an order under paragraph 249(1)(d) are to be credited to the Environmental Damages Fund, an account in the accounts of Canada, and used for purposes related to protecting, conserving or restoring the environment or for administering that Fund.

For greater certainty

(2) For greater certainty, purposes related to protecting, conserving or restoring the environment include promoting the control or reduction of greenhouse gas emissions.

Recommendations of court

(3) A court imposing a fine may recommend to the Minister that all or a portion of the fine credited to the Environmental Damages Fund be paid to a person or an organization, including any entity that represents the interests of one or more of the Indigenous peoples of Canada, specified by the court for a purpose referred to in subsection (1).

Registry

Publication of information about contraventions

252 (1) For the purpose of encouraging compliance with this Part, the Minister must keep, in a registry accessible to the public, information about all convictions of organizations for offences under this Part.

Retention

(2) Information in the registry is to be kept for a minimum of five years.

DIVISION 5

Miscellaneous

Agreements Respecting Administration and Enforcement

Negotiation of agreement

253 (1) The Minister may negotiate an agreement respecting the administration and enforcement of this Part with any person, any government in Canada, the government of a foreign state or a political subdivision of a foreign state, any international organization or any institution of a government or an international organization.

Publication of final agreement

(2) The Minister must publish an agreement made under subsection (1), or give notice of its availability, in the Canada Gazette and in any other manner that the Minister considers appropriate.

Action not limited by agreement

(3) An agreement made under this section must not limit or restrict the carrying out of any action the Minister deems necessary for the administration and enforcement of this Part, including the conduct of inspections or investigations.

Confidentiality

Request for confidentiality

254 A person that provides information to the Minister under this Part may submit with the information a written request, with supporting justifications, that the information be treated as confidential for one or more of the following reasons:

(a) the information constitutes a trade secret;

(b) the disclosure of the information would likely cause material financial loss to, or prejudice to the competitive position of, the person; or

(c) the disclosure of the information would likely interfere with contractual or other negotiations being conducted by the person.

Additional justification

255 (1) The Minister may, after studying the reasons provided under section 254, require the person in question to provide in writing, within a period specified by the Minister, additional justification for the request for confidentiality.

Minister's decision

(2) In determining whether to accept or reject the request, the Minister must consider whether the reasons are well-founded and, if they are, the Minister may nevertheless reject the request if the Minister considers that the public interest in the disclosure of the information outweighs in importance any material financial loss or prejudice to the competitive position of the person that provided the information.

Acceptance of request

(3) If the Minister accepts the request, he or she must not disclose the information unless the disclosure

(a) is made with the written consent of the person that made the request;

(b) is made to the Canada Revenue Agency;

(c) is made to the Minister of Finance for the purpose of developing policy related to the pricing of greenhouse gas emissions;

(d) is necessary for the purposes of the administration or enforcement of this Part; or

(e) is made under an agreement or arrangement between the Government of Canada or any of its institutions and any other government in Canada, the government of a foreign state or a political subdivision of a foreign state, or an international organization or any of its institutions, or between the Minister and any other minister of the Crown in right of Canada, in which the government, international organization, institution or other minister undertakes to keep the information confidential.

Rejection of request

(4) If the Minister rejects the request,

(a) the person has the right to ask the Federal Court to review the matter within 30 days after the day on which the person is notified that the request has been rejected or within any further time that the Court may, before the expiry of those 30 days, fix; and

(b) the Minister must advise the person of the rejection, of the Minister's intention to disclose the information and of the person's right to ask the Federal Court to review the matter.

Applicable provisions

(5) If the person asks the Federal Court to review a matter under paragraph (4)(a), sections 45 to 47 of the Access to Information Act apply, with any modifications that the circumstances require, in respect of a request for a review under that paragraph as if it were an application made under section 44 of that Act.

Regulations

256 The Governor in Council may make regulations specifying the information to be provided in a request for confidentiality.

Regulations

Variation

257 For greater certainty, regulations made under this Part may distinguish among any province or area and among any class of persons, equipment, facilities, activities or greenhouse gas emission sources, including fuels.

Incorporation by reference — limitation removed

258 The limitation set out in paragraph 18.â€�1(2)â€�(a) of the Statutory Instruments Act, to the effect that a document must be incorporated as it exists on a particular date, does not apply to any power to make regulations under this Part.

Regulations not mandatory

259 The following provisions apply in the absence of any regulations referred to in those provisions:

(a) subsections 172(1) and (3);

(b) sections 175 and 179;

(d) section 182;

(e) subsection 187(3); and

(f) subsections 188(1), (2) and (4).

Service Fees Act

260 For greater certainty, an excess emissions charge is not a fee as defined in subsection 2(1) of the Service Fees Act.

Review

261 (1) The Minister must undertake a review of sections 232 to 252 each time the Minister undertakes a review under section 294.5 of the Canadian Environmental Protection Act, 1999.

Report to Parliament

(2) The Minister must, no later than one year after the day on which the review is undertaken, cause a report on the review to be tabled in each House of Parliament.

Definitions

262 The following definitions apply in this Part.

federal land means land that belongs to Her Majesty in right of Canada, or that Her Majesty in right of Canada has the power to dispose of, and all waters on and airspace above that land. (territoire domanial)

federal work or undertaking means any work or undertaking that is within the legislative authority of Parliament, including

(a) a work or undertaking operated for or in connection with navigation and shipping, whether inland or maritime, including the operation of ships and transportation by ship;

(b) a railway, canal, telegraph or other work or undertaking connecting one province with another, or extending beyond the limits of a province;

(d) a ferry between any province and any other province or between any province and any country other than Canada;

(e) airports, aircraft and commercial air services;

(f) a broadcast undertaking;

(g) a bank;

(h) a work or undertaking that, although wholly situated within a province, is before or after its completion declared by Parliament to be for the general advantage of Canada or for the advantage of two or more provinces; and

(i) a work or undertaking outside the exclusive legislative authority of the legislatures of the provinces. (entreprises fédérales)

Indigenous land means

(a) a reserve and any other land that is set apart for the use and benefit of a band under the Indian Act, and all waters on and airspace above that reserve or land; and

(b) land that is subject to a comprehensive or specific claim agreement, or a self-government agreement, between the Government of Canada and an Indigenous people of Canada, and all waters on and airspace above that land, with respect to which title remains with Her Majesty in right of Canada. (terres autochtones)

Indigenous peoples of Canada has the meaning assigned by the definition aboriginal peoples of Canada in subsection 35(2) of the Constitution Act, 1982. (peuples autochtones du Canada)

provincial law means an Act of the legislature of a province that relates to the control or pricing of greenhouse gas emissions and any regulations made under that Act. (texte législatif d'une province)

Regulations

263 (1) The Governor in Council may, by regulation, made on the recommendation of the Minister of the Environment, provide that a provincial law applies to

(a) a federal work or undertaking that is located in that province;

(b) federal land or any part of that land that is located in that province;

(d) any part of the internal waters of Canada that is located in or contiguous with that province; or

(e) any part of the territorial sea of Canada, the exclusive economic zone of Canada or the continental shelf of Canada that is contiguous with that province.

Limitation

(2) Subsection (1) does not apply to any provision of a provincial law that imposes a tax.

Limitation

(3) For greater certainty, this section must not be interpreted as providing a basis for any claim, by or on behalf of a province, in respect of any interest in or legislative jurisdiction over any offshore area to which a provincial law is applied under this section or the living or non-living resources of that area, or as limiting the application of any federal laws.

Statutory Instruments Act

264 The Statutory Instruments Act does not apply to any instrument made by a provincial official or body under the authority of a provincial law that is incorporated by reference in a regulation made under subsection 263(1).

Service Fees Act

265 For greater certainty, the Service Fees Act does not apply to any fee, charge or levy that is fixed under a provincial law that is incorporated by reference in a regulation made under subsection 263(1).

Federal Courts Act

266 (1) A provincial official or body that exercises a power or performs a duty or function under a regulation made under subsection 263(1) is not a federal board, commission or other tribunal for the purposes of the Federal Courts Act.

Review or appeal in provincial courts

(2) Unless otherwise provided by a regulation made under subsection 263(1), if a power is conferred or a duty or function is imposed by a provincial law that is incorporated by reference in the regulation, the exercise of the power or the performance of the duty or function is subject to review by, or appeal to, the courts of the province in the same manner and to the same extent as if the laws of that province applied.

Exclusive economic zone and continental shelf

267 For greater certainty, an individual who exercises a power or performs a duty or function under a regulation made under subsection 263(1) may do so in the exclusive economic zone of Canada or in waters above the continental shelf of Canada.

Amounts collected

268 Payments collected by a provincial official or body under a regulation made under subsection 263(1) belong to Her Majesty in right of the province and are not public money for the purposes of the Financial Administration Act.

Liability for acts and omissions

269 In respect of any act or omission occurring in the exercise of a power or the performance of a duty or function under a regulation made under subsection 263(1),

(a) Her Majesty in right of Canada is entitled to the same limits on liability, defences and immunities as those that would apply to Her Majesty in right of the province in question when Her Majesty in right of that province exercises such a power or performs such a duty or function under the law that applies in that province; and

(b) any person or body exercising the power or performing the duty or function is entitled to the same limits on liability, defences and immunities as those that would apply to a person or body when the person or body exercises such a power or performs such a duty or function under the law that applies in that province in question.

Annual report

270 Starting in the year in which the second anniversary of the day on which this section comes into force falls and each calendar year after that, the Minister of the Environment must prepare a report on the administration of this Act and have a copy of the report tabled in each House of Parliament.

Making of Regulations

Making

187 (1) The Fuel Charge Regulations, whose text is as follows and whose schedule is set out in Schedule 5 to this Act, are made as follows:

Fuel Charge Regulations

Interpretation

Definition of Act

1 In these Regulations, Act means the Greenhouse Gas Pollution Pricing Act.

Definitions

2 The following definitions apply in this Part.

basic rate, in respect of a particular quarter, means the rate that is the simple arithmetic mean, expressed as a percentage per year and rounded to the next higher whole percentage if the mean is not a whole percentage, of all amounts each of which is the average equivalent yield, expressed as a percentage per year, of Government of Canada Treasury Bills that mature approximately three months after their date of issue and that are sold at auctions of Government of Canada Treasury Bills during the first month of the quarter preceding the particular quarter. (taux de base)

quarter means any period of three consecutive months beginning on January 1, April 1, July 1 or October 1. (trimestre)

Prescribed rates of interest

3 For the purposes of Part 1 of the Act, the prescribed rate of interest in effect during a particular quarter is

(a) in the case of interest to be paid to the Receiver General, the sum of the basic rate in respect of the particular quarter and 4%;

(b) in the case of interest to be paid or applied on an amount payable by the Minister to a person (other than a corporation), the sum of the basic rate in respect of the particular quarter and 2%;

(c) in the case of interest to be paid or applied on an amount payable by the Minister to a corporation, the basic rate in respect of the particular quarter; and

(d) in any other case, the sum of the basic rate in respect of the particular quarter and 4%.

Prescribed persons — rail carriers

4 A person listed in the schedule is prescribed for the purposes of paragraph 62(1)(b) of the Act.

Authority and Statutory Instruments Act

(2) The Fuel Charge Regulations, as made by subsection (1), are deemed

(a) to have been made under section 166 of the Greenhouse Gas Pollution Pricing Act as enacted by section 186 of this Act;

(b) for the purposes of subsection 5(1) of the Statutory Instruments Act, to have been transmitted to the Clerk of the Privy Council for registration; and

Consequential Amendments

R.S., c. A-1

Access to Information Act

188 Schedule II to the Access to Information Act is amended by adding, in alphabetical order, a reference to

Greenhouse Gas Pollution Pricing Act

Loi sur la tarification de la pollution causée par les gaz à effet de serre

and a corresponding reference to "section 107 and subsection 255(3)".

R.S., c. T-2

Tax Court of Canada Act

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

Jurisdiction

12 (1) The Court has exclusive original jurisdiction to hear and determine references and appeals to the Court on matters arising under the Air Travellers Security Charge Act, the Canada Pension Plan, the Cultural Property Export and Import Act, Part V.1 of the Customs Act, the Employment Insurance Act, the Excise Act, 2001, Part IX of the Excise Tax Act, Part 1 of the Greenhouse Gas Pollution Pricing Act, the Income Tax Act, the Old Age Security Act, the Petroleum and Gas Revenue Tax Act and the Softwood Lumber Products Export Charge Act, 2006 when references or appeals to the Court are provided for in those Acts.

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

Further jurisdiction

(3) The Court has exclusive original jurisdiction to hear and determine questions referred to it under section 51 or 52 of the Air Travellers Security Charge Act, section 97.58 of the Customs Act, section 204 or 205 of the Excise Act, 2001, section 310 or 311 of the Excise Tax Act, section 121 or 122 of the Greenhouse Gas Pollution Pricing Act, section 173 or 174 of the Income Tax Act or section 62 or 63 of the Softwood Lumber Products Export Charge Act, 2006.

Extensions of time

(4) The Court has exclusive original jurisdiction to hear and determine applications for extensions of time under section 45 or 47 of the Air Travellers Security Charge Act, subsection 28(1) of the Canada Pension Plan, section 33.2 of the Cultural Property Export and Import Act, section 97.51 or 97.52 of the Customs Act, subsection 103(1) of the Employment Insurance Act, section 197 or 199 of the Excise Act, 2001, section 304 or 305 of the Excise Tax Act, section 115 or 117 of the Greenhouse Gas Pollution Pricing Act or section 166.2 or 167 of the Income Tax Act.

190 Paragraph 18.29(3)(a) of the Act is amended by adding the following after subparagraph (vi):

(vi.1) section 115 or 117 of the Greenhouse Gas Pollution Pricing Act,

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

Determination of a question

(2) If it is agreed under section 51 of the Air Travellers Security Charge Act, section 97.58 of the Customs Act, section 204 of the Excise Act, 2001, section 310 of the Excise Tax Act, section 121 of the Greenhouse Gas Pollution Pricing Act or section 62 of the Softwood Lumber Products Export Charge Act, 2006 that a question should be determined by the Court, sections 17.1, 17.2 and 17.4 to 17.8 apply, with any modifications that the circumstances require, in respect of the determination of the question.

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

Provisions applicable to determination of a question

(2) If an application has been made under section 52 of the Air Travellers Security Charge Act, section 205 of the Excise Act, 2001, section 311 of the Excise Tax Act, section 122 of the Greenhouse Gas Pollution Pricing Act or section 63 of the Softwood Lumber Products Export Charge Act, 2006 for the determination of a question, the application or determination of the question must, subject to section 18.33, be determined in accordance with sections 17.1, 17.2 and 17.4 to 17.8, with any modifications that the circumstances require.

1999, c. 17; 2005, c. 38, s. 35

Canada Revenue Agency Act

193 Paragraph (a) of the definition program legislation in section 2 of the Canada Revenue Agency Act is replaced by the following:

(a) that the Governor in Council or Parliament authorizes the Minister, the Agency, the Commissioner or an employee of the Agency to administer or enforce, including the Air Travellers Security Charge Act, the Customs Act, the Excise Act, the Excise Act, 2001, the Excise Tax Act, the Greenhouse Gas Pollution Pricing Act, the Income Tax Act and the Softwood Lumber Products Export Charge Act, 2006; or

2009, c. 14, s. 126

Environmental Violations Administrative Monetary Penalties Act

194 The long title of the Environmental Violations Administrative Monetary Penalties Act is replaced by the following:

An Act to establish a system of administrative monetary penalties for the enforcement of the Antarctic Environmental Protection Act, the Canada National Marine Conservation Areas Act, the Canada National Parks Act, the Canada Water Act, the Canada Wildlife Act, the Canadian Environmental Protection Act, 1999, the Greenhouse Gas Pollution Pricing Act, the International River Improvements Act, the Migratory Birds Convention Act, 1994, the Rouge National Urban Park Act, the Saguenay-St. Lawrence Marine Park Act and the Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act

195 (1) The definition Environmental Act in section 2 of the Act is replaced by the following:

Environmental Act means the Antarctic Environmental Protection Act, the Canada National Marine Conservation Areas Act, the Canada National Parks Act, the Canada Water Act, the Canada Wildlife Act, the Canadian Environmental Assessment Act, 2012, the Canadian Environmental Protection Act, 1999, the Greenhouse Gas Pollution Pricing Act, the International River Improvements Act, the Migratory Birds Convention Act, 1994, the Rouge National Urban Park Act, the Saguenay-St. Lawrence Marine Park Act or the Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act. (loi environnementale)

(2) Paragraph (a) of the definition Minister in section 2 of the Act is replaced by the following:

(a) with respect to violations that relate to the Antarctic Environmental Protection Act, the Canada Water Act, the Canada Wildlife Act, the Canadian Environmental Assessment Act, 2012, the Canadian Environmental Protection Act, 1999, the Greenhouse Gas Pollution Pricing Act, the International River Improvements Act, the Migratory Birds Convention Act, 1994 or the Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act, the Minister of the Environment; and

196 Section 5 of the Act is amended by adding the following after subsection (3.1):

Restriction — Greenhouse Gas Pollution Pricing Act

(3.2) With respect to the Greenhouse Gas Pollution Pricing Act, only a contravention or a failure to comply arising out of any provision of Part 2 of that Act or out of any provision of any regulation made under that Part may be designated under paragraph (1)(a).

197 The Act is amended by adding the following after section 12:

Greenhouse Gas Pollution Pricing Act

12.1 If subsection 174(1) or paragraph 178(1)(a) of the Greenhouse Gas Pollution Pricing Act is designated by regulations made under paragraph 5(1)(a) of this Act, each CO₂e tonne of a greenhouse gas that is emitted over the applicable emissions limit for which no compensation is provided by the increased-rate compensation deadline constitutes a separate violation.

Coordinating Amendment

2014, c. 7

198 On the first day on which both section 11 of the Disability Tax Credit Promoters Restrictions Act and subsection 189(1) of this Act are in force, subsection 12(1) of the Tax Court of Canada Act is replaced by the following:

Jurisdiction

12 (1) The Court has exclusive original jurisdiction to hear and determine references and appeals to the Court on matters arising under the Air Travellers Security Charge Act, the Canada Pension Plan, the Cultural Property Export and Import Act, Part V.1 of the Customs Act, the Disability Tax Credit Promoters Restrictions Act, the Employment Insurance Act, the Excise Act, 2001, Part IX of the Excise Tax Act, Part 1 of the Greenhouse Gas Pollution Pricing Act, the Income Tax Act, the Old Age Security Act, the Petroleum and Gas Revenue Tax Act and the Softwood Lumber Products Export Charge Act, 2006 when references or appeals to the Court are provided for in those Acts.

Schedule 1

(Section 93)

SCHEDULE 7

(Sections 2, 158.19, 158.21, 158.24 to 158.27, 158.31, 158.34, 218.1, 233.1, 234.1 and 238.1)

Duty on Cannabis Products

1 Any cannabis product produced in Canada or imported: the amount equal to the total of

(a) $0.25 per gram of flowering material included in the cannabis product or used in the production of the cannabis product,

(b) $0.075 per gram of non-flowering material included in the cannabis product or used in the production of the cannabis product,

(d) $0.25 per vegetative cannabis plant included in the cannabis product or used in the production of the cannabis product.

2 Any cannabis product produced in Canada: the amount obtained by multiplying the dutiable amount for the cannabis product by 2.5%.

3 Any imported cannabis product: the amount obtained by multiplying the value of the cannabis product by 2.5%.

4 Any cannabis product taken for use or unaccounted for: the amount obtained by multiplying the fair market value of the cannabis product by 2.5%.

SCHEDULE 2

(Section 160)

SCHEDULE 3

(Subsections 50(1), 53(2) and 55(1), section 56, paragraph 94(c) and subsections 132(1) and (3))

Pain and Suffering Compensation
Column 1 Rate of Pain and Suffering Compensation (%)	Column 2 Extent of Disability (%)	Column 3 Monthly Amount ($)	Column 4 Lump Sum Amount ($)
100	98-100	1150.00	365,400.00
95	93-97	1092.50	347,130.00
90	88-92	1035.00	328,860.00
85	83-87	977.50	310,590.00
80	78-82	920.00	292,320.00
75	73-77	862.50	274,050.00
70	68-72	805.00	255,780.00
65	63-67	747.50	237,510.00
60	58-62	690.00	219,240.00
55	53-57	632.50	200,970.00
50	48-52	575.00	182,700.00
45	43-47	517.50	164,430.00
40	38-42	460.00	146,160.00
35	33-37	402.50	127,890.00
30	28-32	345.00	109,620.00
25	23-27	287.50	91,350.00
20	18-22	230.00	73,080.00
15	13-17	172.50	54,810.00
10	8-12	115.00	36,540.00
5	5-7	57.50	18,270.00
4	4	46.00	14,616.00
3	3	34.50	10,962.00
2	2	23.00	7,308.00
1	1	11.50	3,654.00

SCHEDULE 3

(Section 161)

SCHEDULE 4

(Subsection 56.6(5) and paragraphs 94(c) and 133(3)(a) to (c))

Additional Pain and Suffering Compensation
Column 1 Extent of Permanent and Severe Impairment	Column 2 Monthly Amount ($)
Grade 1	1500.00
Grade 2	1000.00
Grade 3	500.00

SCHEDULE 4

(Section 186)

SCHEDULE 1

(Section 3, subsections 166(2) and 168(1), paragraph 168(2)(c), subsection 168(3), section 169, subsection 172(1), section 185, subsection 189(1) and section 193)

Provinces and Areas

Part 1

Provinces and Areas for the Purposes of Part 1 of the Act

Part 2

Provinces and Areas for the Purposes of Part 2 of the Act

Schedule 2

(Section 3, subsections 166(4) and 168(1), paragraphs 168(2)(b) and (c) and subsection 168(3))

Charge Rates

TABLE 1
Rates of charge applicable in 2018
Column 1 Item	Column 2 Type	Column 3 Unit	Column 5 Rate
1	Aviation gasoline	$/litre	0.0249
2	Aviation turbo fuel	$/litre	0.0258
3	Butane	$/litre	0.0178
4	Ethane	$/litre	0.0102
5	Gas liquids	$/litre	0.0167
6	Gasoline	$/litre	0.0221
7	Heavy fuel oil	$/litre	0.0319
8	Kerosene	$/litre	0.0258
9	Light fuel oil	$/litre	0.0268
10	Methanol	$/litre	0.0110
11	Naphtha	$/litre	0.0225
12	Petroleum coke	$/litre	0.0384
13	Pentanes plus	$/litre	0.0178
14	Propane	$/litre	0.0155
15	Coke oven gas	$/cubic metre	0.0070
16	Marketable natural gas	$/cubic metre	0.0196
17	Non-marketable natural gas	$/cubic metre	0.0259
18	Still gas	$/cubic metre	0.0270
19	Coke	$/tonne	31.80
20	High heat value coal	$/tonne	22.52
21	Low heat value coal	$/tonne	17.72
22	Combustible waste	$/tonne	19.97

TABLE 2
Rates of charge applicable in 2019
Column 1 Item	Column 2 Type	Column 3 Unit	Column 5 Rate
1	Aviation gasoline	$/litre	0.0498
2	Aviation turbo fuel	$/litre	0.0516
3	Butane	$/litre	0.0356
4	Ethane	$/litre	0.0204
5	Gas liquids	$/litre	0.0333
6	Gasoline	$/litre	0.0442
7	Heavy fuel oil	$/litre	0.0637
8	Kerosene	$/litre	0.0516
9	Light fuel oil	$/litre	0.0537
10	Methanol	$/litre	0.0220
11	Naphtha	$/litre	0.0451
12	Petroleum coke	$/litre	0.0767
13	Pentanes plus	$/litre	0.0356
14	Propane	$/litre	0.0310
15	Coke oven gas	$/cubic metre	0.0140
16	Marketable natural gas	$/cubic metre	0.0391
17	Non-marketable natural gas	$/cubic metre	0.0517
18	Still gas	$/cubic metre	0.0540
19	Coke	$/tonne	63.59
20	High heat value coal	$/tonne	45.03
21	Low heat value coal	$/tonne	35.45
22	Combustible waste	$/tonne	39.95

TABLE 3
Rates of charge applicable in 2020
Column 1 Item	Column 2 Type	Column 3 Unit	Column 5 Rate
1	Aviation gasoline	$/litre	0.0747
2	Aviation turbo fuel	$/litre	0.0775
3	Butane	$/litre	0.0534
4	Ethane	$/litre	0.0306
5	Gas liquids	$/litre	0.0499
6	Gasoline	$/litre	0.0663
7	Heavy fuel oil	$/litre	0.0956
8	Kerosene	$/litre	0.0775
9	Light fuel oil	$/litre	0.0805
10	Methanol	$/litre	0.0329
11	Naphtha	$/litre	0.0676
12	Petroleum coke	$/litre	0.1151
13	Pentanes plus	$/litre	0.0534
14	Propane	$/litre	0.0464
15	Coke oven gas	$/cubic metre	0.0210
16	Marketable natural gas	$/cubic metre	0.0587
17	Non-marketable natural gas	$/cubic metre	0.0776
18	Still gas	$/cubic metre	0.0810
19	Coke	$/tonne	95.39
20	High heat value coal	$/tonne	67.55
21	Low heat value coal	$/tonne	53.17
22	Combustible waste	$/tonne	59.92

TABLE 4
Rates of charge applicable in 2021
Column 1 Item	Column 2 Type	Column 3 Unit	Column 5 Rate
1	Aviation gasoline	$/litre	0.0995
2	Aviation turbo fuel	$/litre	0.1033
3	Butane	$/litre	0.0712
4	Ethane	$/litre	0.0408
5	Gas liquids	$/litre	0.0666
6	Gasoline	$/litre	0.0884
7	Heavy fuel oil	$/litre	0.1275
8	Kerosene	$/litre	0.1033
9	Light fuel oil	$/litre	0.1073
10	Methanol	$/litre	0.0439
11	Naphtha	$/litre	0.0902
12	Petroleum coke	$/litre	0.1535
13	Pentanes plus	$/litre	0.0712
14	Propane	$/litre	0.0619
15	Coke oven gas	$/cubic metre	0.0280
16	Marketable natural gas	$/cubic metre	0.0783
17	Non-marketable natural gas	$/cubic metre	0.1034
18	Still gas	$/cubic metre	0.1080
19	Coke	$/tonne	127.19
20	High heat value coal	$/tonne	90.07
21	Low heat value coal	$/tonne	70.90
22	Combustible waste	$/tonne	79.89

TABLE 5
Rates of charge applicable after 2021
Column 1 Item	Column 2 Type	Column 3 Unit	Column 5 Rate
1	Aviation gasoline	$/litre	0.1244
2	Aviation turbo fuel	$/litre	0.1291
3	Butane	$/litre	0.0890
4	Ethane	$/litre	0.0509
5	Gas liquids	$/litre	0.0832
6	Gasoline	$/litre	0.1105
7	Heavy fuel oil	$/litre	0.1593
8	Kerosene	$/litre	0.1291
9	Light fuel oil	$/litre	0.1341
10	Methanol	$/litre	0.0549
11	Naphtha	$/litre	0.1127
12	Petroleum coke	$/litre	0.1919
13	Pentanes plus	$/litre	0.0890
14	Propane	$/litre	0.0774
15	Coke oven gas	$/cubic metre	0.0350
16	Marketable natural gas	$/cubic metre	0.0979
17	Non-marketable natural gas	$/cubic metre	0.1293
18	Still gas	$/cubic metre	0.1350
19	Coke	$/tonne	158.99
20	High heat value coal	$/tonne	112.58
21	Low heat value coal	$/tonne	88.62
22	Combustible waste	$/tonne	99.87

SCHEDULE 3

(Sections 169 and 170 and subsection 190(1))

Greenhouse gases
Item	Column 1 Gas	Column 2 Global Warming Potential
1	Carbon dioxide, which has the molecular formula CO₂	1
2	Methane, which has the molecular formula CH₄	25
3	Nitrous oxide, which has the molecular formula N₂O	298
4	Sulfur hexafluoride, which has the molecular formula SF₆	22,800
5	Nitrogen trifluoride, which has the molecular formula NF₃	17,200
6	HFC-23, which has the molecular formula CHF₃	14,800
7	HFC-32, which has the molecular formula CH₂F₂	675
8	HFC-41, which has the molecular formula CH₃F	92
9	HFC-43-10mee, which has the molecular formula CF₃CHFCHFCF₂CF₃	1,640
10	HFC-125, which has the molecular formula CHF₂CF₃	3,500
11	HFC-134, which has the molecular formula CHF₂CHF₂	1,100
12	HFC-134a, which has the molecular formula CH₂FCF₃	1,430
13	HFC-143, which has the molecular formula CH₂FCHF₂	353
14	HFC-143a, which has the molecular formula CH₃CF₃	4,470
15	HFC-152, which has the molecular formula CH₂FCH₂F	53
16	HFC-152a, which has the molecular formula CH₃CHF₂	124
17	HFC-161, which has the molecular formula CH₃CH₂F	12
18	HFC-227ea, which has the molecular formula CF₃CHFCF₃	3,220
19	HFC-236cb, which has the molecular formula CH₂FCF₂CF₃	1,340
20	HFC-236ea, which has the molecular formula CHF₂CHFCF₃	1,370
21	HFC-236fa, which has the molecular formula CF₃CH₂CF₃	9,810
22	HFC-245ca, which has the molecular formula CH₂FCF₂CHF₂	693
23	HFC-245fa, which has the molecular formula CHF₂CH₂CF₃	1,030
24	HFC-365mfc, which has the molecular formula CH₃CF₂CH₂CF₃	794
25	Perfluoromethane, which has the molecular formula CF₄	7,390
26	Perfluoroethane, which has the molecular formula C₂F₆	12,200
27	Perfluoropropane, which has the molecular formula C₃F₈	8,830
28	Perfluorobutane, which has the molecular formula C₄F₁₀	8,860
29	Perfluorocyclobutane, which has the molecular formula c-C₄F₈	10,300
30	Perfluoropentane, which has the molecular formula C₅F₁₂	9,160
31	Perfluorohexane, which has the molecular formula C₆F₁₄	9,300
32	Perfluorodecalin, which has the molecular formula C₁₀F₁₈	7,500
33	Perfluorocyclopropane, which has the molecular formula c-C₃F₆	17,340

SCHEDULE 4

(Paragraph 174(3)(b), subsections 174(5), 178(2), 181(3) and section 191)

Excess Emissions Charge
Item	Column 1 Calendar Year	Column 2 Charge per CO₂e Tonne ($)
1	2018	10
2	2019	20
3	2020	30
4	2021	40
5	2022	50

SCHEDULE 5

(Subsection 187(1))

SCHEDULE

(Section 4)

Canadian National Railway Company

Compagnie des chemins de fer nationaux du Canada

Canadian Pacific Railway Company

Compagnie de chemin de fer Canadien Pacifique

VIA Rail Canada Inc.

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Notice of Ways and Means Motion to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures

PART 1
Amendments to the Income Tax Act and to Related Legislation

PART 2
Amendments to the Excise Act, 2001 (Tobacco Taxation) and to Related Legislation

PART 3
Amendments to the Excise Act, 2001 (Cannabis Taxation), the Excise Tax Act and Other Related Texts

PART 4
Canadian Forces Members and Veterans

PART 5
Greenhouse Gas Pollution Pricing Act

PART 1
Fuel Charge

PART 2
Industrial Greenhouse Gas Emissions

PART 3
Application of Provincial Schemes

PART 4
Report to Parliament

PART 1
Interest Rate

PART 2
Registered Specified Rail Carriers

Thank you for your help!

Notice of Ways and Means Motion to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures

PART 1Amendments to the Income Tax Act and to Related Legislation

PART 2Amendments to the Excise Act, 2001 (Tobacco Taxation) and to Related Legislation

PART 3Amendments to the Excise Act, 2001 (Cannabis Taxation), the Excise Tax Act and Other Related Texts

PART 4Canadian Forces Members and Veterans

PART 5Greenhouse Gas Pollution Pricing Act

PART 1Fuel Charge

PART 2Industrial Greenhouse Gas Emissions

PART 3Application of Provincial Schemes

PART 4Report to Parliament

PART 1Interest Rate

PART 2Registered Specified Rail Carriers

Thank you for your help!

PART 1
Amendments to the Income Tax Act and to Related Legislation

PART 2
Amendments to the Excise Act, 2001 (Tobacco Taxation) and to Related Legislation

PART 3
Amendments to the Excise Act, 2001 (Cannabis Taxation), the Excise Tax Act and Other Related Texts

PART 4
Canadian Forces Members and Veterans

PART 5
Greenhouse Gas Pollution Pricing Act

PART 1
Fuel Charge

PART 2
Industrial Greenhouse Gas Emissions

PART 3
Application of Provincial Schemes

PART 4
Report to Parliament

PART 1
Interest Rate

PART 2
Registered Specified Rail Carriers