Notice of Ways and Means Motion to implement certain provisions of the budget tabled in Parliament on March 19, 2019 and other measures

90899WM—2019-4-2

That it is expedient to implement certain provisions of the budget tabled in Parliament on March 19, 2019 and other measures as follows:

Short title

1 This Act may be cited as the Budget Implementation Act, 2019, No. 1.

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

2 (1) Subsection 13(7) of the Income Tax Act is amended by striking out "and" at the end of paragraph (g), by adding "and" at the end of paragraph (h) and by adding the following after paragraph (h):

(i) if the cost to a taxpayer of a zero-emission passenger vehicle exceeds the prescribed amount,

(i) the capital cost to the taxpayer of the vehicle is deemed to be equal to the prescribed amount, and

(ii) for the purposes of paragraph (a) of the description of F in the definition undepreciated capital cost in subsection (21), the proceeds of disposition of the vehicle are deemed to be the amount determined by the formula

A × B/C

where

A is the amount that would, in the absence of this subparagraph, be the proceeds of disposition of the vehicle,

B is

(A) if the vehicle is disposed of to a person or partnership with which the taxpayer deals at arm's length, the capital cost to the taxpayer of the vehicle, and

(B) in any other case, the cost to the taxpayer of the vehicle, and

C is the cost to the taxpayer of the vehicle.

(2) Subsection (1) is deemed to have come into force on March 19, 2019.

3 (1) The portion of subsection 20(4) of the Act before paragraph (a) is replaced by the following:

Bad debts — dispositions of depreciable property

(4) If an amount that is owing to a taxpayer as or on account of the proceeds of disposition of depreciable property (other than a timber resource property, a passenger vehicle to which paragraph 13(7)(g) applies or a zero-emission passenger vehicle to which paragraph 13(7)(i) applies) of the taxpayer of a prescribed class is established by the taxpayer to have become a bad debt in a taxation year, there may be deducted in computing the taxpayer's income for the year the lesser of

(2) Section 20 of the Act is amended by adding the following after subsection (4.1):

Bad debts — zero-emission passenger vehicles

(4.11) If an amount that is owing to a taxpayer as or on account of the proceeds of disposition of a zero-emission passenger vehicle of the taxpayer to which paragraph 13(7)(i) applies is established by the taxpayer to have become a bad debt in a taxation year, there may be deducted in computing the taxpayer's income for the year the lesser of

(a) the amount that would be determined by the formula in subparagraph 13(7)(i)(ii) in respect of the disposition if the amount determined for A in the formula were the amount owing to the taxpayer, and

(b) the amount determined by the formula

A – B

where

A is the capital cost to the taxpayer of the vehicle, and

B is the amount that would be determined by the formula in subparagraph 13(7)(i)(ii) in respect of the disposition if the amount determined for A in the formula were the total amount, if any, realized by the taxpayer on account of the proceeds of disposition.

(3) Subsections (1) and (2) are deemed to have come into force on March 19, 2019.

4 (1) The portion of subparagraph 39(1)(a)(i.1) of the Act before clause (A) is replaced by the following:

(i.1) an object that the Canadian Cultural Property Export Review Board has determined meets the criterion set out in paragraph 29(3)(b) of the Cultural Property Export and Import Act if

(2) Subsection (1) is deemed to have come into force on March 19, 2019.

5 (1) Subsection 66.2(2) of the Act is amended by striking out "and" at the end of paragraph (b), by adding "and" at the end of paragraph (c) and by adding the following after paragraph (c):

(d) the amount determined by the formula

A(B – C)

where

A is

(i) for taxation years that end before 2024, 15%,

(ii) for taxation years that begin before 2024 and end after 2023, the amount determined by the formula

0.15(I/J) + 0.075(K/J)

where

I is the total of all accelerated Canadian development expenses incurred by the taxpayer before 2024 and in the taxation year,

J is the total of all accelerated Canadian development expenses incurred by the taxpayer in the taxation year, and

K is the total of all accelerated Canadian development expenses incurred by the taxpayer after 2023 and in the taxation year, and

(iii) for taxation years that begin after 2023, 7.5%,

B is the total of all accelerated Canadian development expenses incurred by the taxpayer in the taxation year, and

C is the amount determined by the formula

(D – E) – (F – G – H)

where

D is the total of the amounts determined for E to O in the definition cumulative Canadian development expense in subsection (5) at the end of the taxation year,

E is the total of the amounts determined for E to O in the definition cumulative Canadian development expense in subsection (5) at the beginning of the taxation year,

F is the total of the amounts determined for A to D.1 in the definition cumulative Canadian development expense in subsection (5) at the end of the taxation year,

G is the total of the amounts determined for A to D.1 in the definition cumulative Canadian development expense in subsection (5) at the end of the preceding taxation year, and

H is the amount determined for B.

(2) Subsection 66.2(5) of the Act is amended by adding the following in alphabetical order:

accelerated Canadian development expense, of a taxpayer, means any cost or expense incurred by the taxpayer during a taxation year if the cost or expense

(a) qualifies as a Canadian development expense at the time it is incurred, other than

(i) an expense in respect of which the taxpayer is a successor, within the meaning of subsection 66.7(4), and

(ii) a cost in respect of a Canadian resource property acquired by the taxpayer, or a partnership in which the taxpayer is a member, from a person or partnership with which the taxpayer does not deal at arm's length,

(b) is incurred after November 20, 2018 and before 2028, other than expenses deemed to have been incurred on December 31, 2027 because of subsection 66(12.66), and

(c) if the Canadian development expense is deemed to be a Canadian development expense incurred by the taxpayer because of paragraph 66(12.63)(a), is an amount renounced under an agreement entered into after November 20, 2018; (frais d'aménagement au Canada accélérés)

6 (1) Subsection 66.4(2) of the Act is amended by striking out "and" at the end of paragraph (a), by adding "and" at the end of paragraph (b) and by adding the following after paragraph (b):

A(B – C)

where

A is

(i) for taxation years that end before 2024, 5%,

(ii) for taxation years that begin before 2024 and end after 2023, the amount determined by the formula

0.05(I/J) + 0.025(K/J)

where

I is the total of all accelerated Canadian oil and gas property expenses incurred by the taxpayer before 2024 and in the taxation year,

J is the total of all accelerated Canadian oil and gas property expenses incurred by the taxpayer in the taxation year, and

K is the total of all accelerated Canadian oil and gas property expenses incurred by the taxpayer after 2023 and in the taxation year, and

(iii) for taxation years that begin after 2023, 2.5%,

B is the total of all accelerated Canadian oil and gas property expenses incurred by the taxpayer in the taxation year, and

C is the amount determined by the formula

(D – E) – (F – G – H)

where

D is the total of the amounts determined for E to J in the definition cumulative Canadian oil and gas property expense in subsection (5) at the end of the taxation year,

E is the total of the amounts determined for E to J in the definition cumulative Canadian oil and gas property expense in subsection (5) at the beginning of the taxation year,

F is the total of the amounts determined for A to D.1 in the definition cumulative Canadian oil and gas property expense in subsection (5) at the end of the taxation year,

G is the total of the amounts determined for A to D.1 in the definition cumulative Canadian oil and gas property expense in subsection (5) at the end of the preceding taxation year, and

H is the amount determined for B.

(2) Subsection 66.4(5) of the Act is amended by adding the following in alphabetical order:

accelerated Canadian oil and gas property expense, of a taxpayer, means any cost or expense incurred by the taxpayer during a taxation year, if the cost or expense

(a) qualifies as a Canadian oil and gas property expense at the time it is incurred, other than

(i) an expense in respect of which the taxpayer is a successor, within the meaning of subsection 66.7(5), and

(b) is incurred after November 20, 2018 and before 2028; (frais à l'égard de biens canadiens relatifs au pétrole et au gaz accélérés)

7 (1) The portion of section 67.2 of the Act before the formula is replaced by the following:

Interest on money borrowed for certain vehicles

67.2 For the purposes of this Act, if an amount is paid or payable for a period by a person in respect of interest on borrowed money used to acquire a passenger vehicle or zero-emission passenger vehicle, or on an amount paid or payable for the acquisition of such a vehicle, then in computing the person's income for a taxation year the amount of interest so paid or payable is deemed to be the lesser of the actual amount paid or payable and the amount determined by the formula

(2) Subsection (1) is deemed to have come into force on March 19, 2019.

8 (1) The Act is amended by adding the following after section 67.4:

More than one owner

67.41 If a person owns a zero-emission passenger vehicle jointly with one or more other persons, any reference in paragraph 13(7)(i) to the prescribed amount and in section 67.2 to the amount of $250 or such other amount as may be prescribed is to be read as a reference to that proportion of each of those amounts that the fair market value of the first-mentioned person's interest in the vehicle is of the fair market value of the interests in the vehicle of all those persons.

(2) Subsection (1) is deemed to have come into force on March 19, 2019.

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

Social assistance for informal care programs

(h.1) if the taxpayer is an individual (other than a trust), a social assistance payment ordinarily made on the basis of a means, needs or income test provided for under a program of the Government of Canada or the government of a province, to the extent that it is received directly or indirectly by the taxpayer for the benefit of a particular individual, if

(i) payments to recipients under the program are made for the care and upbringing, on a temporary basis, of another individual in need of protection,

(ii) the particular individual is a child of the taxpayer because of paragraph 252(1)(b) (or would be a child of the taxpayer because of that paragraph if the taxpayer did not receive payments under the program), and

(iii) no special allowance under the Children's Special Allowances Act is payable in respect of the particular individual for the period in respect of which the social assistance payment is made;

(2) Subsection (1) is deemed to have come into force on January 1, 2009.

10 (1) Subsection 85(1) of the Act is amended by adding the following after paragraph (e.4):

(e.5) if the property is depreciable property of a prescribed class of the taxpayer that is a zero-emission passenger vehicle to which paragraph 13(7)(i) applies and the taxpayer and the corporation do not deal at arm's length,

(i) the amount that the taxpayer and the corporation have agreed on in their election in respect of the vehicle is deemed to be an amount equal to the cost amount to the taxpayer of the vehicle immediately before the disposition, and

(ii) for the purposes of subsection 6(2), the cost to the corporation of the vehicle is deemed to be an amount equal to its fair market value immediately before the disposition;

(2) Subsection (1) is deemed to have come into force on March 19, 2019.

11 (1) Paragraph 87(2)(j.6) of the Act is replaced by the following:

Continuing corporation

(j.6) for the purposes of paragraphs 12(1)(t) and (x), subsections 12(2.2) and 13(7.1), (7.4) and (24), paragraphs 13(27)(b) and (28)(c), subsections 13(29) and 18(9.1), paragraphs 20(1)(e), (e.1) and (hh), sections 20.1 and 32, paragraph 37(1)(c), subsection 39(13), subparagraphs 53(2)(c)(vi) and (h)(ii), paragraph 53(2)(s), subsections 53(2.1), 66(11.4), 66.7(11) and 127(10.2), section 139.1, subsection 152(4.3), the determination of D in the definition undepreciated capital cost in subsection 13(21) and the determination of L in the definition cumulative Canadian exploration expense in subsection 66.1(6), the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation;

(2) Subsection 87(2) of the Act is amended by adding the following after paragraph (j.95):

Journalism organizations

(j.96) for the purposes of section 125.6, the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation;

(3) Paragraph 87(2)(oo) of the Act is repealed.

(4) Subsections (1) and (3) apply to taxation years that end after March 18, 2019.

(5) Subsection (2) is deemed to have come into force on January 1, 2019.

12 (1) Paragraph 88(1)(e.8) of the Act is repealed.

(2) Subsection (1) applies to taxation years that end after March 18, 2019.

13 (1) Paragraph 110.1(1)(c) of the Act is replaced by the following:

Gifts to institutions

(c) the total of all amounts each of which is the eligible amount of a gift (other than a gift described in paragraph (d)) of an object that the Canadian Cultural Property Export Review Board has determined meets the criterion set out in paragraph 29(3)(b) of the Cultural Property Export and Import Act, which gift was made by the corporation in the year or in any of the five preceding taxation years to an institution or a public authority in Canada that was, at the time the gift was made, designated under subsection 32(2) of that Act either generally or for a specified purpose related to that object; and

(2) Subsection (1) is deemed to have come into force on March 19, 2019.

14 (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), the amount of $10,000 referred to in the description of B in the formula in subsection 122.91(2), 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 2020 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 2020 taxation year in respect of the amount of $10,000.

15 (1) The Act is amended by adding the following after section 118.01:

118.02

Definitions

(1) The following definitions apply in this section.

digital news subscription, of an individual with a qualified Canadian journalism organization, means an agreement entered into between the individual and the qualified Canadian journalism organization, if

(a) the agreement entitles an individual to access content of the qualified Canadian journalism organization in digital form; and

(b) the qualified Canadian journalism organization is primarily engaged in the production of original written news content and is not engaged in a broadcasting undertaking as defined in subsection 2(1) of the Broadcasting Act. (abonnement aux nouvelles numériques)

qualifying subscription expense, for a taxation year, means the amount paid in the year for a digital news subscription of an individual with a qualified Canadian journalism organization and, for this purpose, if the digital news subscription provides access to content in non-digital form or content other than content of qualified Canadian journalism organizations, the amount considered to be paid for the digital news subscription shall not exceed

(a) the cost of a comparable digital news subscription with the qualified Canadian journalism organization that solely provides access to content of qualified Canadian journalism organizations in digital form; and

(b) if there is no such comparable digital news subscription, 1/2 of the amount actually paid. (dépense pour abonnement admissible)

Digital news subscription tax credit

(2) For the purpose of computing the tax payable under this Part by an individual for a taxation year that is before 2025, there may be deducted the amount determined by the formula

A × B

where

A is the appropriate percentage for the year; and

B is the lesser of

(a) $500, and

(b) the total of all amounts each of which is a qualifying subscription expense of the individual for the year.

Apportionment of credit

(3) If more than one individual is entitled to a deduction under this section for a taxation year in respect of a qualifying subscription expense, the total of all amounts so deductible shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals in respect of the qualifying subscription expense, if that individual were the only individual entitled to deduct an amount for the year under this section, and if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions.

(2) Subsection (1) applies to the 2020 and subsequent taxation years.

16 (1) Paragraph (a) of the definition total cultural gifts in subsection 118.1(1) of the Act is replaced by the following:

(a) of an object that the Canadian Cultural Property Export Review Board has determined meets the criterion set out in paragraph 29(3)(b) of the Cultural Property Export and Import Act,

(2) Subsection (1) is deemed to have come into force on March 19, 2019.

17 (1) Paragraph 118.2(2)(u) of the Act is replaced by the following:

(u) on behalf of the patient who is the holder of a medical document (as defined in subsection 264(1) of the Cannabis Regulations) to support their use of cannabis for medical purposes, for the cost of cannabis, cannabis oil, cannabis plant seeds or cannabis products purchased for medical purposes from a holder of a licence for sale (as defined in subsection 264(1) of the Cannabis Regulations).

(2) Subsection (1) is deemed to have come into force on October 17, 2018.

18 (1) The portion of subsection 118.5(1) of the Act before paragraph (a) is replaced by the following:

Tuition credit

118.5 (1) Subject to subsection (1.2), for the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted,

(2) Section 118.5 of the Act is amended by adding the following after subsection (1.1):

Canada training credit reduction

(1.2) The amount that may be deducted for a taxation year by an individual under subsection (1) is to be reduced by the amount determined by the formula

A × B

where

A is the appropriate percentage for the taxation year; and

B is the amount, if any, deemed to have been paid by the individual under subsection 122.91(1) in respect of the taxation year.

(3) Subsections (1) and (2) are deemed to have come into force on January 1, 2019.

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

Ordering of credits

118.92 In computing an individual's tax payable under this Part, the following provisions shall be applied in the following order: subsections 118(1) and (2), section 118.7, subsections 118(3) and (10) and sections 118.01, 118.02, 118.04, 118.041, 118.05, 118.06, 118.07, 118.3, 118.61, 118.5, 118.9, 118.8, 118.2, 118.1, 118.62 and 121.

(2) Subsection (1) comes into force on January 1, 2020.

20 (1) Section 122.7 of the Act is amended by adding the following after subsection (1.1):

Receipt of social assistance

(1.2) For the purposes of applying the definitions eligible dependant and eligible individual in subsection (1) for a taxation year, an individual shall not fail to qualify as a parent (within the meaning assigned by section 252) of another individual solely because of the receipt of a social assistance amount that is payable under a program of the Government of Canada or the government of a province for the benefit of the other individual, unless the amount is a special allowance under the Children's Special Allowances Act in respect of the other individual in the taxation year.

(2) Subsection (1) is deemed to have come into force on January 1, 2009.

21 (1) The Act is amended by adding the following after section 122.9:

Subdivision a.5

Canada Training Credit

Claimed amount

122.91 (1) An individual who is resident in Canada throughout a taxation year, files a return of income for the taxation year and makes a claim under this subsection is deemed to have paid, at the end of the taxation year, on account of tax payable under this Part for the taxation year, an amount claimed by the individual that does not exceed the lesser of

(a) the training amount limit of the individual for the taxation year, and

(b) 50% of the amount that would be deductible under paragraph 118.5(1)(a) or (d) in computing the individual's tax payable under this Part for the taxation year if

(i) this Act were read without reference to subsections 118.5(1.2) and (2), and

(ii) the appropriate percentage for the taxation year were 100%.

Training amount limit

(2) For the purposes of this section, the training amount limit of an individual for a taxation year is

(a) if the taxation year is after 2019 and the individual has attained the age of 26 years, and has not attained the age of 66 years, before the end of the taxation year, the lesser of

(i) the amount determined by the formula

A + B – C

where

A is the individual's training amount limit for the preceding taxation year,

B is

(A) $250, if

(I) the individual has filed a return of income for the preceding taxation year,

(II) the individual was resident in Canada throughout the preceding taxation year,

(III) the total of the following amounts is greater than or equal to $10,000:

1 the amount that would be the individual's working income (as defined in subsection 122.7(1)) for the preceding taxation year, if this Act were read without reference to paragraph 81(1)(a) and subsection 81(4),

2 the total of all amounts each of which is an amount payable to the individual under subsection 22(1), 23(1), 152.04(1) or 152.05(1) of the Employment Insurance Act in the preceding taxation year, and

3 the amount that would be included in the individual's income because of subparagraph 56(1)(a)(vii) in computing the individual's income for the preceding taxation year, if this Act were read without reference to paragraph 81(1)(a), and

(IV) the individual's income for the preceding taxation year under this Part does not exceed the higher dollar amount referred to in paragraph 117(2)(c), as adjusted under this Act for the preceding taxation year, and

(B) nil, in any other case, and

C is the amount deemed to have been paid by the individual under subsection (1) in respect of the preceding taxation year, and

(ii) the amount determined by the formula

$5,000 – D

where

D is the total of all amounts deemed to have been paid by the individual under subsection (1) in respect of a preceding taxation year; and

(b) nil, in any other case.

Effect of bankruptcy

(3) For the purpose of this Subdivision, if an individual becomes bankrupt in a particular calendar year,

(a) notwithstanding subsection 128(2), any reference to the taxation year of the individual (other than in this subsection) is deemed to be a reference to the particular calendar year; and

(b) the individual's working income and income under this Part for the taxation year ending on December 31 of the particular calendar year is deemed to include the individual's working income and the income under this Part for the taxation year that begins on January 1 of the particular calendar year.

Special rules in the event of death

(4) For the purposes of this section, if an individual dies in a calendar year,

(a) the individual is deemed to be resident in Canada from the time of death until the end of the year;

(b) the individual is deemed to be the same age at the end of the year as the individual would have been if the individual were alive at the end of the year; and

(c) any return of income filed by a legal representative of the individual is deemed to be a return of income filed by the individual.

(2) Subsection (1) is deemed to have come into force on January 1, 2019.

22 (1) The definition specified cooperative income in subsection 125(7) of the Act is repealed.

(2) The portion of subparagraph (a)(i) of the definition specified corporate income in subsection 125(7) of the Act before clause (A) is replaced by the following:

(i) the total of all amounts each of which is income (other than specified farming or fishing income of the corporation for the year) from an active business of the corporation for the year from the provision of services or property to a private corporation (directly or indirectly, in any manner whatever) if

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

specified farming or fishing income, of a particular corporation for a taxation year, means income of the particular corporation (other than an amount included in the particular corporation's income under subsection 135(7)), if

(a) the income is from the sale of the farming products or fishing catches of the particular corporation's farming or fishing business to another corporation, and

(b) the particular corporation deals at arm's length with the other corporation; (revenu d'agriculture ou de pêche déterminé)

(4) Subsections (1) to (3) apply to taxation years that begin after March 21, 2016. Any assessment of a taxpayer's tax, interest and penalties payable under the Act for any taxation year that ends before March 19, 2019 that would, in the absence of this subsection, be precluded because of subsections 152(4) to (5) of the Act is, if requested by the taxpayer, to be made to the extent necessary to take into account subsections (1) to (3).

23 (1) The Act is amended by adding the following after section 125.5:

Definitions

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

assistance means an amount, other than an amount deemed under subsection (2) to have been paid, that would be included under paragraph 12(1)(x) in computing the income of a taxpayer for any taxation year if that paragraph were read without reference to

(a) subparagraphs 12(1)(x)(v) to (viii), if the amount were received

(i) from a person or partnership described in subparagraph 12(1)(x)(ii), or

(ii) in circumstances where clause 12(1)(x)(i)(C) applies; and

(b) subparagraphs 12(1)(x)(v) to (vii), in any other case. (montant d'aide)

eligible newsroom employee, in respect of a qualifying journalism organization in a taxation year, means an individual who

(a) is employed by the organization in the taxation year;

(b) works, on average, a minimum of 26 hours per week throughout the portion of the taxation year in which the individual is employed by the organization;

(c) at any time in the taxation year, has been, or is reasonably expected to be, employed by the organization for a minimum period of 40 consecutive weeks that includes that time;

(d) spends at least 75% of their time engaged in the production of news content, including by researching, collecting information, verifying facts, photographing, writing, editing, designing and otherwise preparing content; and

(e) meets any prescribed conditions. (employé de salle de presse admissible)

qualifying journalism organization, at any time, means a qualified Canadian journalism organization that meets the following conditions:

(a) it is primarily engaged in the production of original written news content;

(b) it does not carry on a broadcasting undertaking as defined in subsection 2(1) of the Broadcasting Act;

(c) it does not, in the taxation year in which the time occurs, receive an amount from the Aid to Publishers component of the Canada Periodical Fund; and

(d) if it is a corporation having share capital, it meets the conditions in subparagraph (e)(iii) of the definition Canadian newspaper in subsection 19(5). (organisation journalistique admissible)

qualifying labour expenditure, of a taxpayer for a taxation year in respect of an eligible newsroom employee, means the lesser of

(a) the amount determined by the formula

$55,000 × A/365

where

A is the lesser of 365 and the number of days in the taxation year, and

(b) the amount determined by the formula

A – B

where

A is the salary or wages payable by the taxpayer to the eligible newsroom employee in respect of the portion of the taxation year throughout which the taxpayer is a qualifying journalism organization, and

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

(i) the taxpayer has received, is entitled to receive or can reasonably be expected to receive, in respect of amounts described in A, and

(ii) has not been repaid before the end of the year pursuant to a legal obligation to do so. (dépense de main-d'oeuvre admissible)

Tax credit

(2) A taxpayer that is a qualifying journalism organization at any time in a taxation year and that files a prescribed form containing prescribed information with its return of income for the year is deemed to have, on its balance-due day for the year, paid on account of its tax payable under this Part for the year an amount determined by the formula

0.25(A)

where

A is the total of all amounts each of which is a qualifying labour expenditure of the qualifying journalism organization for the year in respect of an eligible newsroom employee.

When assistance received

(3) For the purposes of this Act other than this section, and for greater certainty, the amount that a qualifying journalism organization is deemed under subsection (2) to have paid for a taxation year is assistance received by it from a government immediately before the end of the year.

(2) Subsection (1) is deemed to have come into force on January 1, 2019. For greater certainty, it does not apply in respect of salary or wages that are in respect of a period before January 1, 2019.

24 (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 2019 and before 2025 (including, for greater certainty, an expense that is deemed by subsection 66(12.66) to be incurred before 2025) 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 2019 and before April 2024, 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 2019 and before April 2024; (dépense minière déterminée)

(3) Subsection 127(10.2) of the Act is replaced by the following:

Expenditure limit

(10.2) For the purpose of subsection (10.1), a particular corporation's expenditure limit for a particular taxation year is the amount determined by the formula

$3 million × ($40 million – A)/$40 million

where

A is

(a) nil, if the following amount is less than or equal to $10 million:

(i) if the particular corporation is not associated with any other corporation in the particular taxation year, the amount that is its taxable capital employed in Canada (within the meaning assigned by section 181.2 or 181.3) for its immediately preceding taxation year, and

(ii) if the particular corporation is associated with one or more other corporations in the particular taxation year, the amount that is the total of all amounts, each of which is the taxable capital employed in Canada (within the meaning assigned by section 181.2 or 181.3) of the particular corporation for its, or of one of the other corporations for its, last taxation year that ended in the last calendar year that ended before the end of the particular taxation year, and

(b) in any other case, the lesser of $40 million and the amount by which the amount determined under subparagraph (a)(i) or (ii), as the case may be, exceeds $10 million.

(4) Subsection 127(10.6) of the Act is amended by adding "and" at the end of paragraph (a), by striking out "and" at the end of paragraph (b) and by repealing paragraph (c).

(5) Subsections (1) and (2) apply in respect of expenses renounced under a flow-through share agreement entered into after March 2019.

(6) Subsections (3) and (4) apply to taxation years that end after March 18, 2019.

25 (1) Subsection 143(2) of the Act is amended by striking out "and" at the end of paragraph (b), by adding "and" at the end of paragraph (c) and by adding the following after paragraph (c):

(d) if the trust earns income from a business in the year, then the portion of the amount payable in the year to a particular participating member of the congregation out of the income of the trust under paragraph (a) that can reasonably be considered to relate to that income from a business is deemed to be income from a business carried on by the particular member.

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

26 (1) The portion of the definition premium in subsection 146(1) of the Act after paragraph (b) is replaced by the following:

but except for the purposes of paragraph (b) of the definition benefit in this subsection, paragraph (2)(b.3), subsection (22) and the definition excluded premium in subsection 146.02(1), does not include a repayment to which paragraph (b) or (d) of the definition excluded withdrawal in subsection 146.01(1), or paragraph (b) of the definition excluded withdrawal in subsection 146.02(1), applies or an amount that is designated under subsection 146.01(3) or 146.02(3); (prime)

(2) Subsection (1) applies in respect of repayments made after 2019.

27 (1) The definition excluded withdrawal in subsection 146.01(1) of the Act is amended by striking out "or" at the end of paragraph (b), by adding "or" at the end of paragraph (c) and by adding the following after paragraph (c):

(d) a particular amount (other than an eligible amount) received while the individual was resident in Canada and in a calendar year if

(i) the particular amount would be a regular eligible amount if subsection (2.1) were read without reference to its subparagraph (a)(iii),

(ii) a payment (other than an excluded premium) equal to the particular amount is made by the individual under a retirement saving plan that is, at the end of the taxation year of the payment, a registered retirement savings plan under which the individual is the annuitant, and

(iii) the payment is made before the end of the second calendar year after the calendar year that includes the particular time referred to in subsection (2.1); (retrait exclu)

(2) Paragraph (h) of the definition regular eligible amount in subsection 146.01(1) of the Act is replaced by the following:

(h) the total of the amount and all other eligible amounts received by the individual in the calendar year that includes the particular time does not exceed $35,000, and

(3) Paragraph (g) of the definition supplemental eligible amount in subsection 146.01(1) of the Act is replaced by the following:

(g) the total of the amount and all other eligible amounts received by the individual in the calendar year that includes the particular time does not exceed $35,000, and

(4) Section 146.01 of the Act is amended by adding the following after subsection (2):

Marriage or common-law partnership

(2.1) Notwithstanding paragraph (2)(a.1), for the purposes of the definition regular eligible amount,

(a) an individual, and a spouse or common-law partner of the individual, are deemed not to have an owner-occupied home in a period ending before a particular time referred to in that definition if

(i) at the particular time, the individual

(A) is living separate and apart from the individual's spouse or common-law partner because of a breakdown of their marriage or common-law partnership,

(B) has been living separate and apart from the individual's spouse or common-law partner for a period of at least 90 days, and

(C) began living separate and apart from the individual's spouse or common-law partner in the calendar year that includes the particular time or any time in the four preceding calendar years,

(ii) in the absence of this subsection, the individual would not be precluded from having a regular eligible amount because of the application of paragraph (f) of that definition in respect of a spouse or common-law partner (other than the spouse or common-law partner referred to in clauses (i)(A) to (C)), and

(iii) where the individual has an owner-occupied home at the particular time,

(A) the home is not the qualifying home referred to in that definition and the individual disposes of the home no later than the end of the second calendar year after the calendar year that includes the particular time, or

(B) the individual acquires the interest, or for civil law the right, of the spouse or common-law partner in the home; and

(b) if an individual to whom paragraph (a) applies has an owner-occupied home at the particular time referred to in that paragraph and the individual acquires the interest, or for civil law the right, of a spouse or common-law partner in the home, the individual is deemed for the purposes of paragraphs (c) and (d) of that definition to have acquired a qualifying home on the date that the individual acquired the interest or the right.

(5) Paragraph 146.01(3)(a) of the Act is replaced by the following:

(a) the total of all amounts (other than excluded premiums, repayments to which paragraph (b) or (d) of the definition excluded withdrawal in subsection (1) applies and amounts paid by the individual in the first 60 days of the year that can reasonably be considered to have been deducted in computing the individual's income, or designated under this subsection, for the preceding taxation year) paid by the individual in the year or within 60 days after the end of the year under a retirement savings plan that is at the end of the year or the following taxation year a registered retirement savings plan under which the individual is the annuitant, and

(6) Subsections (1) and (4) apply in respect of amounts received after 2019.

(7) Subsections (2) and (3) apply to the 2019 and subsequent taxation years in respect of amounts received after March 19, 2019.

(8) Subsection (5) applies in respect of repayments made after 2019.

28 (1) Paragraph (b) of the definition excluded premium in subsection 146.02(1) of the Act is replaced by the following:

(b) was a repayment to which paragraph (b) or (d) of the definition excluded withdrawal in subsection 146.01(1) applies;

(2) Subsection (1) applies in respect of repayments made after 2019.

29 (1) Section 146.2 of the Act is amended by adding the following after subsection (6):

Carrying on a business

(6.1) If tax is payable under this Part for a taxation year because of subsection (6) by a trust that is governed by a TFSA that carries on one or more businesses at any time in the taxation year,

(a) the holder of the TFSA is jointly and severally, or solidarily, liable with the trust to pay each amount payable under this Act by the trust that is attributable to that business or those businesses; and

(b) the issuer's liability at any time for amounts payable under this Act in respect of that business or those businesses shall not exceed the total of

(i) the amount of property of the trust that the issuer is in possession or control of at that time in its capacity as legal representative of the trust, and

(ii) the total amount of all distributions of property from the trust on or after the date that the notice of assessment was sent in respect of the taxation year and before that time.

(2) Subsection (1) applies in respect of business activities in a TFSA for the 2019 and subsequent taxation years.

30 (1) Subsection 149(1) of the Act is amended by adding the following after paragraph (g):

Registered journalism organizations

(h) a registered journalism organization;

(2) Subsection (1) comes into force on January 1, 2020.

31 (1) The definition qualified donee in subsection 149.1(1) of the Act is amended by adding the following after paragraph (b):

(b.1) a registered journalism organization,

(2) Subsection 149.1(1) of the Act is amended by adding the following in alphabetical order:

qualifying journalism organization means a corporation or trust that meets the following conditions:

(a) it is a qualified Canadian journalism organization,

(b) it is constituted and operated for purposes exclusively related to journalism,

(d) it has trustees or a board of directors, each of whom deals at arm's length with each other,

(e) it is not controlled, directly or indirectly in any manner whatever, by a person or by a group of persons that do not deal with each other at arm's length,

(f) it may not, in a taxation year, receive gifts from any one source that represent more than 20% of its total revenues (including donations) for the taxation year, other than a gift

(i) made by way of bequest,

(ii) made within 12 months after the time the organization is first registered, or

(iii) approved, on a case-by-case basis, by the Minister, and

(g) no part of its income is payable to, or otherwise available for the personal benefit of, any proprietor, member, shareholder, director, trustee, settlor or like individual; (organisation journalistique admissible)

(3) Subsection 149.1(4.3) of the Act is replaced by the following:

Revocation of a qualified donee

(4.3) The Minister may, in the manner described in section 168, revoke the registration of a qualified donee referred to in paragraph (a) or (b.1) of the definition qualified donee in subsection (1) for any reason described in subsection 168(1).

(4) Section 149.1 of the Act is amended by adding the following after subsection (14):

Information returns

(14.1) Every registered journalism organization shall, within six months from the end of each taxation year of the organization without notice or demand, file with the Minister both an information return and a public information return for the year in prescribed form and containing prescribed information including, for the public information return, for each donor whose total gifts to the organization in the year exceed $5,000, the name of the donor and the total amount donated.

(5) Paragraphs 149.1(15)(a) and (b) of the Act are replaced by the following:

(a) the information contained in a public information return referred to in subsection 149.1(14) or (14.1) shall be communicated or otherwise made available to the public by the Minister in such manner as the Minister deems appropriate;

(b) the Minister may make available to the public in any manner that the Minister considers appropriate, in respect of each registered, or previously registered, charity, Canadian amateur athletic association, journalism organization and qualified donee referred to in paragraph (a) of the definition qualified donee in subsection (1),

(i) its name, address and date of registration,

(ii) in the case of a registered, or previously registered, charity, Canadian amateur athletic association or journalism organization, its registration number, and

(iii) the effective date of any revocation, annulment or termination of registration; and

(6) Subsection 149.1(22) of the Act is replaced by the following:

Refusal to register

(22) The Minister may, by registered mail, give notice to a person that the application of the person for registration as a registered charity, registered Canadian amateur athletic association, registered journalism organization or qualified donee referred to in subparagraph (a)(i) or (iii) of the definition qualified donee in subsection (1) is refused.

(7) Subsections (1) to (6) come into force on January 1, 2020.

32 (1) Paragraph 152(1)(b) of the Act is replaced by the following:

(b) the amount of tax, if any, deemed by subsection 120(2) or (2.2), 122.5(3), 122.51(2), 122.7(2) or (3), 122.8(4), 122.9(2), 122.91(1), 125.4(3), 125.5(3), 125.6(2), 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on account of the taxpayer's tax payable under this Part for the year.

(2) Paragraph 152(4.2)(b) of the Act is replaced by the following:

(b) redetermine the amount, if any, deemed by subsection 120(2) or (2.2), 122.5(3), 122.51(2), 122.7(2) or (3), 122.8(4), 122.9(2), 122.91(1), 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on account of the taxpayer's tax payable under this Part for the year or deemed by subsection 122.61(1) to be an overpayment on account of the taxpayer's liability under this Part for the year.

(3) Subsections (1) and (2) are deemed to have come into force on January 1, 2019.

33 (1) Section 153 of the Act is amended by adding the following after subsection (3):

Amounts paid in error

(3.1) For the purposes of this Act, an amount (referred to in this subsection as the "excess amount") is deemed to not have been deducted or withheld under subsection (1) by a person if

(a) the excess amount was, absent the application of this subsection, deducted or withheld by the person under subsection (1);

(b) the excess amount is in respect of an excess payment (referred to in this subsection as the "total excess payment") of an individual's salary, wages or other remuneration by the person to the individual in a particular year, that was paid as a result of a clerical, administrative or system error;

(i) the person elects in prescribed manner to have this subsection apply in respect of the excess amount, and

(ii) the individual has repaid, or made an arrangement to repay, the total excess payment less the excess amount;

(d) an information return correcting for the total excess payment has not been issued by the person to the individual prior to the making of the election in subparagraph (c)(i); and

(e) any additional criteria specified by the Minister have been met.

(2) Subsection (1) applies in respect of excess payments of salary, wages or other remuneration made after 2015.

34 (1) Paragraph 157(3)(e) of the Act is replaced by the following:

(e) 1/12 of the total of the amounts each of which is deemed by subsection 125.4(3), 125.5(3), 125.6(2), 127.1(1) or 127.41(3) to have been paid on account of the corporation's tax payable under this Part for the year.

(2) Paragraph 157(3.1)(c) of the Act is replaced by the following:

(c) 1/4 of the total of the amounts each of which is deemed by subsection 125.4(3), 125.5(3), 125.6(2), 127.1(1) or 127.41(3) to have been paid on account of the corporation's tax payable under this Part for the taxation year.

(3) Subsections (1) and (2) are deemed to have come into force on January 1, 2019.

35 (1) Subsection 163(2) of the Act is amended by adding the following after paragraph (c.5):

(c.6) the amount, if any, by which

(i) the total of all amounts each of which is an amount that would be deemed by subsection 122.91(1) to have been paid on account of the person's tax payable under this Part for the year if those amounts were calculated by reference to the information provided in the return

exceeds

(ii) the total of all amounts each of which is an amount that is deemed by subsection 122.91(1) to be a payment on account of the person's tax payable under this Part for the taxation year,

(2) Subsection 163(2) of the Act is amended by striking out "and" at the end of paragraph (f), by adding "and" at the end of paragraph (g) and by adding the following after paragraph (g):

(h) the amount, if any, by which

(i) the amount that would be deemed by subsection 125.6(2) to have been paid for the year by the person if that amount were calculated by reference to the information provided in the return filed for the year pursuant to that subsection

exceeds

(ii) the amount that is deemed by that subsection to be paid for the year by the person.

(3) Subsections (1) and (2) are deemed to have come into force on January 1, 2019.

36 (1) Subparagraph 164(1)(a)(ii) of the Act is replaced by the following:

(ii) before sending the notice of assessment for the year, where the taxpayer is a qualified corporation (as defined in subsection 125.4(1)), an eligible production corporation (as defined in subsection 125.5(1)) or a qualifying journalism organization (as defined in subsection 125.6(1)) and an amount is deemed under subsection 125.4(3), 125.5(3) or 125.6(2) to have been paid on account of its tax payable under this Part for the year, refund all or part of any amount claimed in the return as an overpayment for the year, not exceeding the total of those amounts so deemed to have been paid, and

(2) Subsection (1) is deemed to have come into force on January 1, 2019.

37 (1) Paragraph 168(1)(c) of the Act is replaced by the following:

(c) in the case of a registered charity, registered Canadian amateur athletic association or registered journalism organization, fails to file an information return as and when required under this Act or a regulation;

(2) Paragraph 168(1)(f) of the Act is replaced by the following:

(f) in the case of a registered Canadian amateur athletic association or registered journalism organization, accepts a gift the granting of which was expressly or implicitly conditional on the association or organization making a gift to another person, club, society, association or organization.

(3) The portion of subsection 168(2) of the Act before paragraph (b) is replaced by the following:

Revocation of registration

(2) If the Minister gives notice under subsection (1) to a registered charity, to a registered Canadian amateur athletic association or to a registered journalism organization,

(a) if it has applied to the Minister in writing for the revocation of its registration, the Minister shall, forthwith after the mailing of the notice, publish a copy of the notice in the Canada Gazette, and on that publication of a copy of the notice, the registration is revoked; and

(4) The portion of subsection 168(2) of the English version of the Act after paragraph (a) is replaced by the following:

(b) in any other case, the Minister may, after the expiration of 30 days from the day of mailing of the notice, or after the expiration of such extended period from the day of mailing of the notice as the Federal Court of Appeal or a judge of that Court, on application made at any time before the determination of any appeal pursuant to subsection 172(3) from the giving of the notice, may fix or allow, publish a copy of the notice in the Canada Gazette, and on that publication of a copy of the notice, the registration is revoked.

(5) Paragraph 168(4)(c) of the Act is replaced by the following:

(c) in the case of a person described in any of subparagraphs (a)(i) to (v) and paragraph (b.1) of the definition qualified donee in subsection 149.1(1), that is or was registered by the Minister as a qualified donee or is an applicant for such registration, it objects to a notice under any of subsections (1) and 149.1(4.3) and (22).

(6) Subsections (1) to (5) come into force on January 1, 2020.

38 (1) Paragraph 172(3)(a.2) of the Act is replaced by the following:

(a.2) confirms a proposal or decision in respect of which a notice was issued under any of subsections 149.1(4.3) and (22) and 168(1) by the Minister, to a person that is a person described in any of subparagraphs (a)(i) to (v) and paragraph (b.1) of the definition qualified donee in subsection 149.1(1) that is or was registered by the Minister as a qualified donee or is an applicant for such registration, or does not confirm or vacate that proposal or decision within 90 days after service of a notice of objection by the person under subsection 168(4) in respect of that proposal or decision,

(2) Subsection (1) comes into force on January 1, 2020.

39 (1) Subsections 188.1(6) to (9) of the Act are replaced by the following:

Failure to file information returns

(6) Every registered charity, registered Canadian amateur athletic association and registered journalism organization that fails to file a return for a taxation year as and when required by subsection 149.1(14) or (14.1) is liable to a penalty equal to $500.

Incorrect information

(7) Except where subsection (8) or (9) applies, every registered charity, registered Canadian amateur athletic association and registered journalism organization that issues, in a taxation year, a receipt for a gift otherwise than in accordance with this Act and the regulations is liable for the taxation year to a penalty equal to 5% of the amount reported on the receipt as representing the amount in respect of which a taxpayer may claim a deduction under subsection 110.1(1) or a credit under subsection 118.1(3).

Increased penalty for subsequent assessment

(8) Except where subsection (9) applies, if the Minister has, less than five years before a particular time, assessed a penalty under subsection (7) or this subsection for a taxation year of a registered charity, registered Canadian amateur athletic association or registered journalism organization and, after that assessment and in a subsequent taxation year, it issues, at the particular time, a receipt for a gift otherwise than in accordance with this Act and the regulations, it is liable for the subsequent taxation year to a penalty equal to 10% of the amount reported on the receipt as representing the amount in respect of which a taxpayer may claim a deduction under subsection 110.1(1) or a credit under subsection 118.1(3).

False information

(9) If at any time a person makes or furnishes, participates in the making of or causes another person to make or furnish a statement that the person knows, or would reasonably be expected to know but for circumstances amounting to culpable conduct (as defined in subsection 163.2(1)), is a false statement (as defined in subsection 163.2(1)) on a receipt issued by, on behalf of or in the name of another person for the purposes of subsection 110.1(2) or 118.1(2), the person (or, where the person is an officer, employee, official or agent of a registered charity, registered Canadian amateur athletic association or registered journalism organization, the charity, association or organization) is liable for their taxation year that includes that time to a penalty equal to 125% of the amount reported on the receipt as representing the amount in respect of which a taxpayer may claim a deduction under subsection 110.1(1) or a credit under subsection 118.1(3).

(2) Subsection (1) comes into force on January 1, 2020.

40 (1) The portion of subsection 188.2(1) of the Act before paragraph (a) is replaced by the following:

Notice of suspension with assessment

188.2 (1) The Minister shall, with an assessment referred to in this subsection, give notice by registered mail to a registered charity, registered Canadian amateur athletic association or registered journalism organization that its authority to issue an official receipt referred to in Part XXXV of the Income Tax Regulations is suspended for one year from the day that is seven days after the day on which the notice is mailed, if the Minister has assessed the charity, association or organization for a taxation year for

(2) Subsection 188.2(2.1) of the Act is replaced by the following:

Suspension – failure to report

(2.1) If a registered charity, a registered Canadian amateur athletic association or a registered journalism organization fails to report information that is required to be included in a return filed under subsection 149.1(14) or (14.1), the Minister may give notice by registered mail to the charity, association or organization that its authority to issue an official receipt referred to in Part XXXV of the Income Tax Regulations is suspended from the day that is seven days after the day on which the notice is mailed until such time as the Minister notifies the charity, association or organization that the Minister has received the required information in prescribed form.

(3) Subsections (1) and (2) come into force on January 1, 2020.

41 (1) The portion of subsection 230(2) of the Act before paragraph (a) is replaced by the following:

Records and books

(2) Every qualified donee referred to in paragraphs (a) to (c) of the definition qualified donee in subsection 149.1(1) shall keep records and books of account — in the case of a qualified donee referred to in any of subparagraphs (a)(i) and (iii) and paragraphs (b), (b.1) and (c) of that definition, at an address in Canada recorded with the Minister or designated by the Minister — containing

(2) Subsection (1) comes into force on January 1, 2020.

42 (1) The portion of subsection 241(3.2) of the Act before paragraph (a) is replaced by the following:

Certain qualified donees

(3.2) An official may provide to any person the following taxpayer information relating to another person (in this subsection referred to as the "registrant") that was at any time a registered charity, registered Canadian amateur athletic association or registered journalism organization:

(2) Paragraph 241(3.2)(f) of the Act is replaced by the following:

(f) financial statements required to be filed with an information return referred to in subsection 149.1(14) or (14.1);

(3) Section 241 of the Act is amended by adding the following after subsection (3.3):

Information may be communicated

(3.4) The Minister may communicate or otherwise make available to the public, in any manner that the Minister considers appropriate, the following taxpayer information:

(a) the names of each organization with respect to which an individual can be entitled to a deduction under subsection 118.02(2); and

(b) the start and, if applicable, end of the period in which paragraph (a) applies in respect of any particular organization.

(4) Paragraph 241(4)(d) of the Act is amended by adding the following after subparagraph (xvi):

(xvi.1) to a person employed or engaged in the service of an office or agency, of the Government of Canada or of a province, whose mandate includes the provision of assistance (as defined in subsection 125.6(1)) in respect of qualified Canadian journalism organizations, solely for the purpose of the administration or enforcement of the program under which the assistance is offered,

(xvi.2) to a body referred to in paragraph (b) of the definition qualified Canadian journalism organization in subsection 248(1), solely for the purpose of determining eligibility for designation under that paragraph,

(5) Subsections (1) and (2) come into force on January 1, 2020.

43 (1) The definition passenger vehicle in subsection 248(1) of the Act is replaced by the following:

passenger vehicle means an automobile

(a) acquired after June 17, 1987, other than an automobile that is acquired after that date pursuant to an obligation in writing entered into before June 18, 1987 or that is a zero-emission vehicle, or

(b) leased under a lease entered into, extended or renewed after June 17, 1987; (voiture de tourisme)

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

qualified Canadian journalism organization, at any time, means a corporation, partnership or trust that

(a) meets the following conditions:

(i) in the case of a corporation,

(A) it is incorporated under the laws of Canada or a province,

(B) the chairperson or other presiding officer, and at least 3/4 of the directors or other similar officers, are citizens of Canada, and

(ii) in the case of a partnership,

(A) it is formed under the laws of a province, and

(B) individuals who are citizens of Canada or persons, or partnerships, described in any of subparagraphs (i) to (iii) hold interests in the partnership

(I) representing in value at least 75% of the total value of the partnership property, and

(II) that result in at least 75% of each income or loss of the partnership from any source being included in the determination of their incomes,

(iii) in the case of a trust,

(A) it is formed under the laws of a province,

(B) it is resident in Canada, and

(C) if interests as a beneficiary under the trust are held by one or more persons or partnerships, at least 75% of the fair market value of all interests as a beneficiary under the trust are held by

(I) individuals who are citizens of Canada, or

(II) persons or partnerships described in any of subparagraphs (i) to (iii),

(iv) it operates in Canada, including that its content is edited, designed and, except in the case of digital content, published in Canada,

(v) it is primarily engaged in the production of original news content, which

(A) must be primarily focused on matters of general interest and reports of current events, including coverage of democratic institutions and processes, and

(B) must not be primarily focused on a particular topic such as industry-specific news, sports, recreation, arts, lifestyle or entertainment,

(vi) it regularly employs two or more journalists who deal at arm's length with the organization in the production of its content,

(vii) it is not significantly engaged in the production of content

(A) to promote the interests, or report on the activities, of an organization, an association or its members,

(B) for a government, Crown corporation or government agency, or

(viii) it is not a Crown corporation, municipal corporation or government agency, and

(b) is designated at that time by a body prescribed for the purpose of this definition; (organisation journalistique canadienne qualifiée)

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

registered journalism organization means a qualifying journalism organization (as defined in subsection 149.1(1)) that has applied to the Minister in prescribed form for registration, that has been registered and whose registration has not been revoked; (organisation journalistique enregistrée)

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

zero-emission passenger vehicle, of a taxpayer, means an automobile of the taxpayer that is included in Class 54 of Schedule II to the Income Tax Regulations; (voiture de tourisme zéro émission)

zero-emission vehicle, of a taxpayer, means a motor vehicle that

(a) is a plug-in hybrid that meets prescribed conditions or is fully

(i) electric, or

(ii) powered by hydrogen,

(b) is acquired, and becomes available for use, by the taxpayer after March 18, 2019 and before 2028, and

(i) that has been used, or acquired for use, for any purpose before it was acquired by the taxpayer, or

(ii) in respect of which

(A) the taxpayer has, at any time, made an election under subsection 1103(2j) of the Income Tax Regulations,

(B) assistance has been paid by the Government of Canada under a prescribed program, or

(C) an amount has been deducted under paragraph 20(1)(a) or subsection 20(16) by another person or partnership. (véhicule zéro émission)

(5) Subsections 248(17) and (17.1) of the Act are replaced by the following:

Application of subsection (16) to certain vehicles and aircraft

(17) If the input tax credit of a taxpayer under Part IX of the Excise Tax Act in respect of a passenger vehicle, zero-emission passenger vehicle or aircraft is determined with reference to subsection 202(4) of that Act, subparagraphs (16)(a)(i) to (iii) are to be read as they apply in respect of the vehicle or aircraft, as the case may be, as follows:

(i) at the beginning of the first taxation year or fiscal period of the taxpayer commencing after the end of the taxation year or fiscal period, as the case may be, in which the goods and services tax in respect of such property was considered for the purposes of determining the input tax credit to be payable, if the tax was considered for the purposes of determining the input tax credit to have become payable in the reporting period, or

(ii) if no such tax was considered for the purposes of determining the input tax credit to have become payable in the reporting period, at the end of the reporting period; or

Application of subsection (16.1) to certain vehicles and aircraft

(17.1) If the input tax refund of a taxpayer under An Act respecting the Québec sales tax, R.S.Q., c. T-0.1, in respect of a passenger vehicle, zero-emission passenger vehicle or aircraft is determined with reference to section 252 of that Act, subparagraphs (16.1)(a)(i) to (iii) are to be read as they apply in respect of the vehicle or aircraft, as the case may be, as follows:

(i) at the beginning of the first taxation year or fiscal period of the taxpayer that begins after the end of the taxation year or fiscal period, as the case may be, in which the Quebec sales tax in respect of such property was considered for the purposes of determining the input tax refund to be payable, if the tax was considered for the purposes of determining the input tax refund to have become payable in the reporting period, or

(ii) if no such tax was considered for the purposes of determining the input tax refund to have become payable in the reporting period, at the end of the reporting period; or

(6) Subsections (1), (4) and (5) are deemed to have come into force on March 19, 2019.

(7) Subsection (2) is deemed to have come into force on January 1, 2019.

(8) Subsection (3) comes into force on January 1, 2020.

44 (1) The portion of subsection 253.1(2) of the Act before paragraph (a) is replaced by the following:

Investments in limited partnerships

(2) For the purposes of section 149.1 and subsections 188.1(1) and (2), if a registered charity, a registered Canadian amateur athletic association or a registered journalism organization holds an interest as a member of a partnership, the member shall not, solely because of its acquisition and holding of that interest, be considered to carry on any business of the partnership if

(2) Subsection (1) comes into force on January 1, 2020.

R.S., c. C-8

45 The Canada Pension Plan is amended by adding the following after section 21:

Excess payment — amount deemed not deducted

21.01 (1) Subject to subsection (2), an amount deducted by an employer under subsection 21(1) for a year after 2015 in respect of an excess payment that was paid — as a result of a clerical, administrative or system error — as remuneration to an employee in respect of pensionable employment is deemed not to have been deducted for the purposes of this Act if

(a) before the end of the third year after the calendar year in which the amount was deducted,

(i) the employer elects to have this section apply in respect of the amount, and

(ii) the employee has repaid, or made an arrangement to repay, the employer;

(b) the employer has not filed an information return correcting for the excess payment before making the election referred to in subparagraph (a)(i); and

Determination of amount

(2) For the purposes of subsection (1), the amount that is deemed not to have been deducted is the amount that was deducted by the employer or, if the amount determined by the following formula is less than the amount that was deducted by the employer, the amount determined by the formula

A – B

where

A is the aggregate of all amounts that were deducted by the employer as the employee's contributions for the year in question; and

B is the aggregate of all amounts that would have been deducted by the employer as the employee's contributions for that year had the employer not made the excess payment referred to in subsection (1).

46 (1) Section 38 of the Act is amended by adding the following after subsection (3.2):

Refund — section 21.01 amounts

(3.3) If an amount remitted by an employer is deemed under section 21.01 not to have been deducted, the Minister may refund that amount to the employer if the employer applies to the Minister for the refund within four years after the end of the year for which the amount was remitted.

(2) Section 38 of the Act is amended by adding the following after subsection (7):

Non-application — subsection (7)

(8) Subsection (7) does not apply in respect of an amount referred to in subsection (3.3) that is refunded or applied under this Act to any other liability.

Non-application — subsection 114(2) of Canada Pension Plan

47 (1) Subsection 114(2) of the Canada Pension Plan does not apply in respect of the amendments to that Act contained in sections 45 and 46 of this Act.

Order in council

(2) Sections 45 and 46 come into force, in accordance with subsection 114(4) of the Canada Pension Plan, on a day to be fixed by order of the Governor in Council.

R.S., c. C-51

1991, c. 49, s. 218(1)

48 (1) Subsection 32(1) of the Cultural Property Export and Import Act is replaced by the following:

Request for determination of Review Board

32 (1) For the purposes of subparagraph 39(1)(a)(i.1), paragraph 110.1(1)(c), the definition total cultural gifts in subsection 118.1(1) and subsection 118.1(10) of the Income Tax Act, where a person disposes of or proposes to dispose of an object to an institution or a public authority designated under subsection (2), the person, institution or public authority may request, by notice in writing given to the Review Board, a determination by the Review Board as to whether the object meets the criterion set out in paragraph 29(3)(b) and a determination by the Review Board of the fair market value of the object.

(2) Subsection (1) is deemed to have come into force on March 19, 2019.

1995, c. 38, s. 2

49 (1) Subsection 33(1) of the Act is replaced by the following:

Income tax certificate

33 (1) Where the Review Board determines or redetermines the fair market value of an object in respect of which a request was made under section 32 and determines that the object meets the criterion set out in paragraph 29(3)(b), it shall, where the object has been irrevocably disposed of to a designated institution or public authority, issue to the person who made the disposition a certificate attesting to the fair market value and to the meeting of that criterion , in such form as the Minister of National Revenue may specify.

(2) Subsection (1) is deemed to have come into force on March 19, 2019.

1996, c. 23

50 The Employment Insurance Act is amended by adding the following after section 82:

Excess payment — amount deemed not deducted

82.01 (1) Subject to subsection (2), an amount deducted by an employer under subsection 82(1) for a year after 2015 in respect of an excess payment that was paid — as a result of a clerical, administrative or system error — as remuneration to an insured person is deemed not to have been deducted for the purposes of this Act if

(a) before the end of the third year after the calendar year in which the amount was deducted,

(i) the employer elects to have this section apply in respect of the amount, and

(ii) the insured person has repaid, or made an arrangement to repay, the employer;

(b) the employer has not filed an information return correcting for the excess payment before making the election referred to in subparagraph (a)(i); and

Determination of amount

A – B

where

A is the aggregate of all amounts that were deducted by the employer as the employee's premiums for the year in question; and

B is the aggregate of all amounts that would have been deducted by the employer as the employee's premiums for that year had the employer not made the excess payment referred to in subsection (1).

51 (1) Section 96 of the Act is amended by adding the following after subsection (3):

Refund — section 82.01 amounts

(3.1) If an amount remitted by an employer is deemed under section 82.01 not to have been deducted, the Minister may refund that amount to the employer if the employer applies to the Minister for the refund within three years after the end of the year for which the amount was remitted.

2014, c. 39, s. 225(2)

(2) Subsection 96(13.1) of the Act is replaced by the following:

No interest payable

(13.1) Despite subsection (13), no interest shall be paid on a refund payable under subsection (3.1), (8.7), (8.91), (8.94), (8.97) or (8.98) or on the amount of a refund payable under any of those subsections that is applied under this Act to any other liability.

C.R.C., c. 945

52 (1) Paragraph 1100(1)(a) of the Income Tax Regulations is amended by striking out "and" at the end of subparagraph (xxxviii) and by adding the following after subparagraph (xxxix):

(xl) of Class 54, 30 per cent, and

(xli) of Class 55, 40 per cent,

(2) Subparagraph 1100(1)(b)(i) of the Regulations is replaced by the following:

(i) if the capital cost of the property was incurred in the taxation year and after November 12, 1981,

(A) if the property is an accelerated investment incentive property and the capital cost of the property was incurred before 2024, the lesser of

(I) 150 per cent of the amount for the year calculated in accordance with Schedule III, and

(II) the amount determined for paragraph 1(b) of Schedule III, and

(B) if the property is not an accelerated investment incentive property and is not described in any of subparagraphs (b)(iii) to (v) of the description of F in subsection (2), 50 per cent of the amount for the year calculated in accordance with Schedule III, and

(3) Subparagraph 1100(1)(c)(i) of the Regulations is replaced by the following:

(i) the total of

(A) the aggregate of the amounts for the year obtained by apportioning the capital cost to the taxpayer of each property over the life of the property remaining at the time the cost was incurred, and

(B) if the property is accelerated investment incentive property, the portion of the amount determined under clause (A) that is in respect of the property multiplied by

(I) 0.5, if the property becomes available for use in the year and before 2024, and

(II) 0.25, if the property becomes available for use in the year and after 2023, and

(4) Subparagraph 1100(1)(ta)(v) of the Regulations is replaced by the following:

(v) property described in any of subparagraphs (b)(iii) to (v) of the description of F in subsection (2),

(5) Subparagraph 1100(1)(v)(iv) of the Regulations is replaced by the following:

(iv) the capital cost of the property to the taxpayer multiplied by

(A) 50 per cent, in the case of an accelerated investment incentive property acquired in the year and before 2024,

(B) 16 2/3 per cent, in the case of property acquired in the year, other than

(I) accelerated investment incentive property, and

(II) property described in any of subparagraphs (b)(iii) to (v) of the description of F in subsection (2), and

(6) Subsection 1100(2) of the Regulations is replaced by the following:

(2) The amount that a taxpayer may deduct for a taxation year under subsection (1) in respect of property of a class in Schedule II is to be determined as if the undepreciated capital cost to the taxpayer at the end of the taxation year (before making any deduction under subsection (1) for the taxation year) of property of the class were adjusted by adding the positive or negative amount determined by the formula

A(B) – 0.5(C)

where

A is, in respect of property of the class that became available for use by the taxpayer in the taxation year and that is accelerated investment incentive property or property included in Class 54 or 55,

(a) if the property is not included in paragraph (1)(v) or in any of Classes 12, 13, 14, 15, 43.1, 43.2, 53, 54 and 55 or in Class 43 in the circumstances described in paragraph (d),

(i) 1/2, for property that became available for use by the taxpayer before 2024, and

(ii) nil, for property that became available for use by the taxpayer after 2023,

(b) if the class is Class 43.1,

(i) 2 1/3, for property that became available for use by the taxpayer before 2024,

(ii) 1 1/2, for property that became available for use by the taxpayer in 2024 or 2025, and

(iii) 5/6, for property that became available for use by the taxpayer after 2025,

(i) 1, for property that became available for use by the taxpayer before 2024,

(ii) 1/2, for property that became available for use by the taxpayer in 2024, and

(iii) nil, in any other case,

(d) if the property is included in Class 53 or — for property acquired after 2025 — is included in Class 43 and would have been included in Class 53 if it had been acquired in 2025,

(i) 1, for property that became available for use by the taxpayer before 2024,

(ii) 1/2, for property that became available for use by the taxpayer in 2024 or 2025, and

(iii) 5/6, for property that became available for use by the taxpayer after 2025,

(e) if the class is Class 54,

(i) 2 1/3, for property that became available for use by the taxpayer before 2024,

(ii) 1 1/2, for property that became available for use by the taxpayer in 2024 or 2025, and

(iii) 5/6, for property that became available for use by the taxpayer after 2025,

(f) if the class is Class 55,

(i) 1 1/2, for property that became available for use by the taxpayer before 2024,

(ii) 7/8, for property that became available for use by the taxpayer in 2024 or 2025, and

(iii) 3/8, for property that became available for use by the taxpayer after 2025, and

(g) in any other case, nil;

B is the amount determined, in respect of the class, by the formula

D – E

where

D is the total of all amounts, if any, each of which is an amount included in the description of A in the definition undepreciated capital cost in subsection 13(21) of the Act in respect of property of the class that became available for use by the taxpayer in the taxation year and that is accelerated investment incentive property or property included in Class 54 or 55, as the case may be, and

E is the amount, if any, by which the amount determined for G exceeds the amount determined for F in the description of C; and

C is the amount determined, in respect of the class, by the formula

F – G

where

F is the total of all amounts each of which

(a) is an amount added to the undepreciated capital cost to the taxpayer of property of the class

(i) because of element A in the definition undepreciated capital cost in subsection 13(21) of the Act in respect of property (other than accelerated investment incentive property) that was acquired, or became available for use, by the taxpayer in the taxation year, or

(ii) because of element C or D in the definition undepreciated capital cost in subsection 13(21) of the Act in respect of an amount that was repaid in the taxation year, and

(b) is not in respect of

(i) property included in paragraph (1)(v), in paragraph (w) of Class 10 or in any of paragraphs (a) to (c), (e) to (i), (k), (l) and (p) to (s) of Class 12,

(ii) property included in any of Classes 13, 14, 15, 23, 24, 27, 29, 34, 52, 54 and 55,

(iii) where the taxpayer was a corporation described in subsection (16) throughout the taxation year, property that was specified leasing property of the taxpayer at that time,

(iv) property that was deemed to have been acquired by the taxpayer in a preceding taxation year by reason of the application of paragraph 16.1(1)(b) of the Act in respect of a lease to which the property was subject immediately before the time at which the taxpayer last acquired the property, or

(v) property considered to have become available for use by the taxpayer in the taxation year by reason of paragraph 13(27)(b) or (28)(c) of the Act, and

G is the total of all amounts each of which is an amount deducted from the undepreciated capital cost to the taxpayer of property of the class

(a) because of element F or G in the definition undepreciated capital cost in subsection 13(21) of the Act in respect of property disposed of in the taxation year, or

(b) because of element J in the definition undepreciated capital cost in subsection 13(21) of the Act in respect of an amount the taxpayer received or was entitled to receive in the taxation year.

Straddle years

(2.01) For the purposes of subsection (2),

(a) if a taxation year begins in 2023 and ends in 2024, the factor determined for A in subsection (2) is to be replaced by the factor determined by the formula

(A(B) + C(D))/(B + D)

where

A is the factor otherwise determined for A in subsection (2) for 2023,

B is the amount that would be determined for D in subsection (2) if the only property that became available for use by the taxpayer in the taxation year were property that became available for use by the taxpayer in 2023,

C is the factor otherwise determined for A in subsection (2) for 2024, and

D is the amount that would be determined for D in subsection (2) if the only property that became available for use by the taxpayer in the taxation were property that became available for use by the taxpayer in 2024; and

(b) if a taxation year begins in 2025 and ends in 2026, the factor determined for A in subsection (2) is to be replaced by the factor determined by the formula

(A(B) + C(D))/(B + D)

where

A is the factor otherwise determined for A in subsection (2) for 2025,

C is the factor otherwise determined for A in subsection (2) for 2026, and

D is the amount that would be determined for D in subsection (2) if the only property that became available for use by the taxpayer in the taxation year were property that became available for use by the taxpayer in 2026.

Expenditures before November 21, 2018

(2.02) For the purposes of subsection (2), in respect of property of a class in Schedule II that is accelerated investment incentive property of a taxpayer solely because of subparagraph 1104(4)(b)(i),

(a) no amount is to be included in respect of the property in determining the amount for D in subsection (2) in respect of the class to the extent that the amount includes expenditures incurred by any person or partnership before November 21, 2018, unless the person or partnership from which the taxpayer acquired the property dealt at arm's length with the taxpayer and held the property as inventory; and

(b) any amount excluded from the amount determined for D in subsection (2) in respect of the class because of paragraph (a) is to be included in determining the amount for F in subsection (2) in respect of the class, unless no amount in respect of the property would be so included if the property were not accelerated investment incentive property of the taxpayer.

(7) Paragraph 1100(2.2)(h) of the Regulations is replaced by the following:

(h) no amount shall be included in determining an amount for F in subsection (2) in respect of the property;

(8) Paragraph 1100(2.2)(k) of the Regulations is replaced by the following:

(k) if the property is a property described in paragraph (1)(v), its subparagraph (iv) shall be read, in respect of the property, as "33 1/3 per cent of the capital cost of the property to the taxpayer, and".

(9) Subsection 1100(2.3) of the Regulations is replaced by the following:

(2.3) If a taxpayer has disposed of a property and, because of paragraph (2.2)(h), no amount is required to be included in determining an amount for F in subsection (2) in respect of the property by the person that acquired the property, no amount shall be included by the taxpayer in determining an amount for G in subsection (2) in respect of the disposition of the property.

53 (1) The portion of subsection 1102(14) of the Regulations before paragraph (a) is replaced by the following:

(14) Subject to subsections (14.11) to (14.13), for the purposes of this Part and Schedule II, if a property is acquired by a taxpayer

(2) Section 1102 of the Regulations is amended by adding the following after subsection (14.12):

(14.13) Subsection (14) does not apply to an acquisition of property by a taxpayer from a person in respect of which the property is a zero-emission vehicle included in Class 54 or 55.

(3) Section 1102 of the Regulations is amended by adding the following after subsection (20):

(20.1) For the purposes of subsection 1104(4), if, in the absence of this subsection, a taxpayer would be considered to be dealing at arm's length with another person or partnership as a result of a transaction or series of transactions the principal purpose of which may reasonably be considered to have been to cause one or more properties of the taxpayer to qualify as accelerated investment incentive property, the taxpayer shall be considered not to be dealing at arm's length with the other person or partnership in respect of the acquisition of those properties.

(4) Section 1102 of the Regulations is amended by adding the following after subsection (25):

(26) For the purpose of the definition zero-emission vehicle in subsection 248(1) of the Act,

(a) it is a prescribed condition that the motor vehicle has a battery capacity of at least 15 kWh; and

(b) the federal purchase incentive announced on March 19, 2019 is a prescribed program.

(5) Subsections (1), (2) and (4) are deemed to have come into force on March 19, 2019.

54 (1) Section 1103 of the Regulations is amended by adding the following after subsection (2i):

(2j) A taxpayer may, in its return of income filed with the Minister on or before its filing-due date for the taxation year in which a property is acquired, elect not to include the property in Class 54 or 55 in Schedule II, as the case may be.

(2) Subsection (1) is deemed to have come into force on March 19, 2019.

55 (1) Section 1104 of the Regulations is amended by adding the following after subsection (3):

(4) For the purposes of this Part and Schedules II to VI, accelerated investment incentive property means property of a taxpayer (other than property included in Class 54 or 55) that

(a) is acquired by the taxpayer after November 20, 2018 and becomes available for use before 2028; and

(b) meets either of the following conditions:

(i) the property

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

(B) is not a property in respect of which an amount has been deducted under paragraph 20(1)(a) or subsection 20(16) of the Act by another person or partnership, or

(ii) the property was not

(A) acquired in circumstances where

(I) the taxpayer was deemed to have been allowed or deducted an amount under paragraph 20(1)(a) of the Act in respect of the property in computing income for previous taxation years, or

(II) the undepreciated capital cost of depreciable property of a prescribed class of the taxpayer was reduced by an amount determined by reference to the amount by which the capital cost of the property to the taxpayer exceeds its cost amount, or

(B) previously owned or acquired by the taxpayer or by a person or partnership with which the taxpayer did not deal at arm's length at any time when the property was owned or acquired by the person or partnership.

(2) Paragraph 1104(17)(a) of the Regulations is replaced by the following:

(a) the property is

(i) included in Class 43.1 because of its subparagraph (c)(i), or

(ii) described in

(A) any of subparagraphs (d)(vii) to (ix), (xi), (xiii), (xiv), (xvi) and (xvii) of Class 43.1, or

(B) paragraph (a) of Class 43.2; and

(3) Subsection (2) applies to property acquired after March 21, 2016 that has not been used or acquired for use before March 22, 2016. However, in respect of property acquired before March 22, 2017, clause 1104(17)(a)(ii)(A) of the Regulations, as enacted by subsection (2), is to be read as follows:

(A) any of subparagraphs (d)(viii), (ix), (xi), (xiii), (xiv), (xvi) and (xvii) of Class 43.1, or

56 (1) Subsection 1106(3) of the Regulations is amended by striking out "and" at the end of paragraph (d), by adding "and" at the end of paragraph (e) and by adding the following after paragraph (e):

(f) the Memorandum of Understanding between the Government of Canada and the Respective Governments of the Flemish, French and German-Speaking Communities of the Kingdom of Belgium concerning Audiovisual Coproduction.

(2) Subsection (1) is deemed to have come into force on March 12, 2018.

57 (1) The definition registered organization in section 3500 of the Regulations is replaced by the following:

registered organization means a registered charity, a registered Canadian amateur athletic association, registered journalism organization or a registered national arts service organization. (organisation enregistrée)

(2) Subsection (1) comes into force on January 1, 2020.

58 (1) Paragraphs 5800(1)(d) and (e) of the Regulations are replaced by the following:

(d) in respect of

(i) any record of the minutes of meetings of the executive of a registered charity, registered Canadian amateur athletic association or registered journalism organization,

(ii) any record of the minutes of meetings of the members of a registered charity, registered Canadian amateur athletic association or registered journalism organization, and

(iii) all documents and by-laws governing a registered charity, registered Canadian amateur athletic association or registered journalism organization,

the period ending on the day that is two years after the date on which the registration of the registered charity, the registered Canadian amateur athletic association or the registered journalism organization under the Act is revoked;

(e) in respect of all records and books of account that are not described in paragraph (d) and that relate to a registered charity, registered Canadian amateur athletic association or registered journalism organization whose registration under the Act is revoked, and in respect of the vouchers and accounts necessary to verify the information in such records and books of account, the period ending on the day that is two years after the date on which the registration of the registered charity, the registered Canadian amateur athletic association or the registered journalism organization under the Act is revoked;

(2) Subsection (1) comes into force on January 1, 2020.

59 (1) Section 7307 of the Regulations is amended by adding the following after subsection (1):

(1.1) For the purposes of paragraph 13(7)(i) of the Act, the amount prescribed in respect of a zero-emission passenger vehicle of a taxpayer is the amount determined by the formula

A + B

where

A is $55,000; and

B is the sum that would have been payable in respect of federal and provincial sales taxes on the acquisition of the vehicle if it had been acquired by the taxpayer at a cost equal to A, before the application of the federal and provincial sales taxes.

(2) Subsection (1) is deemed to have come into force on March 19, 2019.

60 (1) The portion of paragraph 8302(3)(j) of the Regulations before subparagraph (i) is replaced by the following:

(j) if the amount of the individual's lifetime retirement benefits depends solely on the actual amount of the pension (in this paragraph referred to as the "statutory pension") payable to the individual under paragraph 46(1)(a) of the Canada Pension Plan or a similar provision of a provincial pension plan (as defined in section 3 of that Act), the amount of statutory pension (expressed on an annualized basis) were equal to

(2) Subsection 8302(3) of the Regulations is amended by adding the following after paragraph (j):

(j.1) if the amount of the individual's lifetime retirement benefits depends on the actual amount of the pension (in this paragraph referred to as the "statutory pension") payable to the individual under paragraphs 46(1)(a) and (b) of the Canada Pension Plan or a similar provision of a provincial pension plan (as defined in section 3 of that Act), the amount of statutory pension (expressed on an annualized basis) were equal to

(i) the amount determined by the formula

A × B

where

A is

(A) for 2018 and preceding years, 0.25,

(B) for 2019, 0.2625,

(D) for 2021, 0.29165,

(E) for 2022, 0.3125, and

(F) for 2023 and subsequent years, 1/3, and

B is the lesser of the Year's Maximum Pensionable Earnings for the particular year and,

(A) in the case of an individual who renders services throughout the particular year on a full-time basis to employers who participate in the plan, the aggregate of all amounts each of which is the individual's remuneration for the particular year from such an employer, and

(B) in any other case, the amount that it is reasonable to consider would be determined under clause (A) if the individual had rendered services throughout the particular year on a full-time basis to employers who participate in the plan, or

(ii) at the option of the plan administrator, any other amount determined in accordance with a method for estimating the statutory pension that can be expected to result in amounts substantially similar to amounts determined under subparagraph (i);

(3) Subsections (1) and (2) are deemed to have come into force on January 1, 2019.

61 (1) Subclauses (d)(i)(A)(I) and (II) of Class 43.1 in Schedule II to the Regulations are replaced by the following:

(I) active solar heating equipment, including such equipment that consists of above ground solar collectors, solar energy conversion equipment, solar water heaters, thermal energy storage equipment, control equipment and equipment designed to interface solar heating equipment with other heating equipment, or

(II) equipment that is part of a ground source heat pump system that transfers heat to or from the ground or groundwater (but not to or from surface water such as a river, a lake or an ocean) and that, at the time of installation, meets the standards set by the Canadian Standards Association for the design and installation of earth energy systems, including such equipment that consists of piping (including above or below ground piping and the cost of drilling a well, or trenching, for the purpose of installing that piping), energy conversion equipment, thermal energy storage equipment, control equipment and equipment designed to enable the system to interface with other heating or cooling equipment, and

(2) Subclause (d)(v)(B)(I) of Class 43.1 in Schedule II to the Regulations is replaced by the following:

(I) control and conditioning equipment,

(3) The portion of subparagraph (d)(vi) of Class 43.1 in Schedule II to the Regulations before clause (A) is replaced by the following:

(vi) fixed location photovoltaic equipment that is used by the taxpayer, or a lessee of the taxpayer, primarily for the purpose of generating electrical energy from solar energy if the equipment consists of solar cells or modules and related equipment including inverters, control and conditioning equipment, support structures and transmission equipment, but not including

(4) Subparagraph (d)(vii) of Class 43.1 in Schedule II to the Regulations is replaced by the following:

(vii) equipment used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of generating electrical energy solely from geothermal energy, including such equipment that consists of piping (including above or below ground piping and the cost of drilling a well, or trenching, for the purpose of installing that piping), pumps, heat exchangers, steam separators, electrical generating equipment and ancillary equipment used to collect the geothermal heat, but not including buildings, transmission equipment, distribution equipment, property otherwise included in Class 10 and property that would be included in Class 17 if that Class were read without reference to its subparagraph (a.1)(i),

(5) Subparagraph (d)(vii) of Class 43.1 in Schedule II to the Regulations, as enacted by subsection (4), is replaced by the following:

(vii) equipment used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of generating electrical energy or heat energy, or both electrical and heat energy, solely from geothermal energy, including such equipment that consists of piping (including above or below ground piping and the cost of completing a well (including the wellhead and production string), or trenching, for the purpose of installing that piping), pumps, heat exchangers, steam separators, electrical generating equipment and ancillary equipment used to collect the geothermal heat, but not including buildings, distribution equipment, equipment used to heat water for use in a swimming pool, equipment described in subclause (i)(A)(II), property otherwise included in Class 10 and property that would be included in Class 17 if that Class were read without reference to its paragraph (a.1),

(6) Subparagraph (d)(xii) of Class 43.1 in Schedule II to the Regulations is replaced by the following:

(xii) fixed location fuel cell equipment used by the taxpayer, or by a lessee of the taxpayer, that uses hydrogen generated only from ancillary electrolysis equipment (or, if the fuel cell is reversible, the fuel cell itself) using electricity all or substantially all of which is generated by using kinetic energy of flowing water or wave or tidal energy (otherwise than by diverting or impeding the natural flow of the water or by using physical barriers or dam-like structures) or by geothermal, photovoltaic, wind energy conversion, or hydro-electric equipment, of the taxpayer or the lessee, and equipment ancillary to the fuel cell equipment other than buildings or other structures, transmission equipment, distribution equipment, auxiliary electrical generating equipment and property otherwise included in Class 10 or 17,

(7) Subparagraph (d)(xiv) of Class 43.1 in Schedule II to the Regulations is replaced by the following:

(xiv) property that is used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of generating electricity using kinetic energy of flowing water or wave or tidal energy (otherwise than by diverting or impeding the natural flow of the water or by using physical barriers or dam-like structures), including support structures, control and conditioning equipment, submerged cables and transmission equipment, but not including buildings, distribution equipment, auxiliary electricity generating equipment, property otherwise included in Class 10 and property that would be included in Class 17 if that class were read without reference to its subparagraph (a.1)(i),

(8) Paragraph (d) of Class 43.1 in Schedule II to the Regulations is amended by striking out "or" at the end of subparagraph (xv) and "and" at the end of subparagraph (xvi) and by adding the following after subparagraph (xvi):

(xvii) equipment used by the taxpayer, or by a lessee of the taxpayer, for the purpose of charging electric vehicles, including charging stations, transformers, distribution and control panels, circuit breakers, conduits and related wiring, if

(A) the equipment is situated

(I) on the load side of an electricity meter used for billing purposes by a power utility, or

(II) on the generator side of an electricity meter used to measure electricity generated by the taxpayer or the lessee, as the case may be,

(B) more than 75 per cent of the electrical equipment capacity is dedicated to charging electric vehicles, and

(I) an electric vehicle charging station (other than a building) that supplies more than 10 kilowatts of continuous power, or

(II) used primarily in connection with one or more electric vehicle charging stations (other than buildings) each of which supplies more than 10 kilowatts of continuous power, or

(xviii) fixed location energy storage property that

(A) is used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of storing electrical energy

(I) including batteries, compressed air energy storage, flywheels, ancillary equipment (including control and conditioning equipment) and related structures, and

(II) not including buildings, pumped hydroelectric storage, hydro electric dams and reservoirs, property used solely for backup electrical energy, batteries used in motor vehicles, fuel cell systems where the hydrogen is produced via steam reformation of methane and property otherwise included in Class 10 or 17, and

(B) either

(I) if the electrical energy to be stored is used in connection with property of the taxpayer or a lessee of the taxpayer, as the case may be, is described in paragraph (c) or would be described in this paragraph if it were read without reference to this subparagraph, or

(II) meets the condition that the efficiency of the electrical energy storage system that includes the property – computed by reference to the quantity of electrical energy supplied to and discharged from the electrical energy storage system – is greater than 50%, and

(9) Subsections (1) to (4) and (6) to (8) apply to property acquired after March 21, 2016 that has not been used or acquired for use before March 22, 2016.

(10) Subsection (5) applies in respect of property acquired for use after March 21, 2017 that has not been used or acquired for use before March 22, 2017.

62 (1) Paragraphs (a) and (b) of Class 43.2 in Schedule II to the Regulations are replaced by the following:

(a) otherwise than because of paragraph (d) of that Class, if the expression "6,000 BTU" in clause (c)(i)(B) of that Class were read as "4,750 BTU"; or

(b) because of paragraph (d) of that Class, if

(i) the expression "6,000 BTU" in clause (c)(i)(B) of that Class were read as "4,750 BTU",

(ii) subclauses (d)(xvii)(C)(I) and (II) of that Class were read as follows:

(I) an electric vehicle charging station (other than a building) that supplies at least 90 kilowatts of continuous power, or

(II) used

1 primarily in connection with one or more electric vehicle charging stations (other than buildings) each of which supplies more than 10 kilowatts of continuous power, and

2 in connection with one or more electric vehicle charging stations (other than buildings) each of which supplies at least 90 kilowatts of continuous power, or

and

(iii) clause (d)(xviii)(B) of that Class were read without reference to its subclause (II).

(2) Subsection (1) applies to property acquired after March 21, 2016 that has not been used or acquired for use before March 22, 2016.

63 (1) Schedule II to the Regulations is amended by adding the following after Class 53:

CLASS 54

Property that is a zero-emission vehicle that is not included in Class 16 or 55.

CLASS 55

Property that is a zero-emission vehicle that would otherwise be included in Class 16.

(2) Subsection (1) is deemed to have come into force on March 19, 2019.

64 Paragraph 1(a) of Schedule IV to the Regulations is replaced by the following:

(a) an amount equal to

(i) if the property is an accelerated investment incentive property acquired in the year,

(A) if the property is acquired before 2024, 1.5 times an amount computed on the basis of a rate per cord, board foot or cubic metre cut in the taxation year, and

(B) if the property is acquired after 2023, 1.25 times an amount computed on the basis of a rate per cord, board foot or cubic metre cut in the taxation year, and

(ii) in any other case, an amount computed on the basis of a rate per cord, board foot or cubic metre cut in the taxation year, and

65 Paragraph 2(a) of Schedule IV to the Regulations is replaced by the following:

(a) the undepreciated capital cost to the taxpayer as of the end of the taxation year (before making any deduction under section 1100 for the taxation year and computed as if subparagraph 1(a)(i) did not apply) of the property

66 Section 2 of Schedule V to the Regulations is replaced by the following:

2 If the taxpayer has not been granted an allowance in respect of the mine or right for a previous taxation year, the rate for a taxation year is determined by the formula

A(B – C)/D

where

A is

(a) 1.5, if the property is an accelerated investment incentive property acquired before 2024,

(b) 1.25, if the property is an accelerated investment incentive property acquired after 2023, and

B is the capital cost of the mine or right to the taxpayer;

C is the residual value, if any, of the mine or right; and

D is

(a) if the taxpayer has acquired a right to remove only a specified number of units, the specified number of units of material that the taxpayer acquired a right to remove, and

(b) in any other case, the number of units of commercially mineable material estimated as being in the mine when the mine or right was acquired.

67 (1) Paragraph 3(a) of Schedule V to the Regulations is replaced by the following:

(a) if paragraph (b) does not apply,

(i) if section 2 applied in the previous year to determine the rate employed to determine the allowance for the year, the rate that would have been determined under section 2 if paragraph (c) of the description of A in that section applied, and

(ii) in any other case, the rate employed to determine the allowance for the most recent year for which an allowance was granted; and

(2) The portion of paragraph 3(b) of Schedule V to the Regulations before subparagraph (i) is replaced by the following:

(b) where it has been established that the number of units of material remaining to be mined in the previous taxation year was in fact different from the quantity that was employed in determining the rate for the previous year referred to in paragraph (a), or where it has been established that the capital cost of the mine or right is substantially different from the amount that was employed in determining the rate for that previous year, a rate determined by dividing the amount that would be the undepreciated capital cost to the taxpayer of the mine or right as of the commencement of the year if paragraph (c) of the description of A in section 2 had applied in respect of each previous taxation year minus the residual value, if any, by

68 Section 2 of Schedule VI to the Regulations is replaced by the following:

2 If the taxpayer has not been granted an allowance in respect of the limit or right for a previous taxation year, the rate for a taxation year is an amount determined by the formula

A(B – (C +D))/E

where

A is

(a) 1.5, if the property is an accelerated investment incentive property acquired before 2024,

(b) 1.25, if the property is an accelerated investment incentive property acquired after 2023, and

B is the capital cost of the mine or right to the taxpayer;

C is the residual value of the timber limit;

D is the total of all amounts expended by the taxpayer after the commencement of the taxpayer's 1949 taxation year that are included in the capital cost to the taxpayer of the timber limit or right, for surveys, cruises or preparation of prints, maps or plans for the purpose of obtaining a licence or right to cut timber; and

E is the quantity of timber in the limit or the quantity of timber the taxpayer has obtained a right to cut, as the case may be, (expressed in cords, board feet or cubic metres) as shown by a cruise.

69 (1) Paragraph 3(a) of Schedule VI to the Regulations is replaced by the following:

(a) if paragraph (b) does not apply,

(ii) in any other case, the rate employed to determine the allowance for the most recent year for which an allowance was granted; and

(2) Subparagraph 3(b)(i) of Schedule VI to the Regulations is replaced by the following:

(i) the amount that would be the undepreciated capital cost to the taxpayer of the limit or right as of the commencement of the year if paragraph (c) of the description of A in section 2 had applied in respect of each previous taxation year, minus the residual value,

R.S., c. E-15

1990, c. 45, s. 12(1)

70 (1) The definition passenger vehicle in subsection 123(1) of the Excise Tax Act is replaced by the following:

passenger vehicle means a passenger vehicle or a zero-emission passenger vehicle, as those terms are defined in subsection 248(1) of the Income Tax Act; (voiture de tourisme)

(2) Subsection (1) is deemed to have come into force on March 19, 2019.

2007, c. 18, s. 15(1)

71 (1) The portion of the description of A in paragraph 201(b) of the French version of the Act before subparagraph (i) is replaced by the following:

A représente la taxe qui serait payable par lui relativement à la voiture s'il l'avait acquise à l'endroit ci-après au moment donné pour une contrepartie égale au montant qui serait, selon celui des alinéas 13(7)g) à i) de la Loi de l'impôt sur le revenu qui est applicable relativement à la voiture, réputé être, pour l'application de l'article 13 de cette loi, le coût en capital pour un contribuable d'une voiture de tourisme à laquelle l'alinéa en cause s'applique s'il n'était pas tenu compte de l'élément B des formules figurant à l'alinéa 7307(1)b) et au paragraphe 7307(1.1) du Règlement de l'impôt sur le revenu :

2007, c. 18, s. 15(1)

(2) The portion of the description of A in paragraph 201(b) of the English version of the Act after subparagraph (ii) is replaced by the following:

for consideration equal to the amount that would, under whichever of paragraphs 13(7)(g) to (i) of the Income Tax Act is applicable in respect of the vehicle, be deemed to be, for the purposes of section 13 of that Act, the capital cost to a taxpayer of a passenger vehicle in respect of which that paragraph applies if the formulae in paragraph 7307(1)(b) and subsection 7307(1.1) of the Income Tax Regulations were read without reference to the description of B,

(3) Subsections (1) and (2) apply to any passenger vehicle that is acquired, imported or brought into a participating province after March 18, 2019.

2007, c. 18, s. 16(1)

72 (1) Subsection 202(1) of the Act is replaced by the following:

Improvement to passenger vehicle

202 (1) If the consideration paid or payable by a registrant for an improvement to a passenger vehicle of the registrant increases the cost to the registrant of the vehicle to an amount that exceeds the amount that would, under whichever of paragraphs 13(7)(g) to (i) of the Income Tax Act is applicable in respect of the vehicle, be deemed to be, for the purposes of section 13 of that Act, the capital cost to a taxpayer of a passenger vehicle in respect of which that paragraph applies if the formulae in paragraph 7307(1)(b) and subsection 7307(1.1) of the Income Tax Regulations were read without reference to the description of B, the tax calculated on that excess shall not be included in determining an input tax credit of the registrant for any reporting period of the registrant.

(2) Subsection (1) applies to any improvement to a passenger vehicle that is acquired, imported or brought into a participating province after March 18, 2019.

2017, c. 33, s. 125(1)

73 (1) Subparagraph (b)(ii) of the definition imported taxable supply in section 217 of the Act is replaced by the following:

(ii) the recipient is not acquiring the property for consumption, use or supply exclusively in the course of its commercial activities or the property is a passenger vehicle that the recipient is acquiring for use in Canada as capital property in its commercial activities and that has a capital cost to the recipient exceeding the amount deemed under any of paragraphs 13(7)(g) to (i) of the Income Tax Act to be the capital cost of the vehicle to the recipient for the purposes of section 13 of that Act;

2017, c. 33, s. 125(2)

(2) Subparagraph (b.01)(ii) of the definition imported taxable supply in section 217 of the Act is replaced by the following:

2017, c. 33, s. 125(4)

(3) Subparagraph (b.1)(ii) of the definition imported taxable supply in section 217 of the Act is replaced by the following:

(ii) the recipient is not acquiring, as the recipient of the taxable supply, the property for consumption, use or supply exclusively in the course of its commercial activities or the property is a passenger vehicle that the recipient is acquiring for use in Canada as capital property in its commercial activities and that has a capital cost to the recipient exceeding the amount deemed under any of paragraphs 13(7)(g) to (i) of the Income Tax Act to be the capital cost of the vehicle to the recipient for the purposes of section 13 of that Act;

(4) Subsections (1) to (3) apply in respect of supplies made after March 18, 2019.

2017, c. 33, s. 134(F)

74 (1) The portion of subsection 235(1) of the French version of the Act before the formula is replaced by the following:

Taxe nette en cas de location de voiture de tourisme

235 (1) Lorsque la taxe relative aux fournitures d'une voiture de tourisme, effectuées aux termes d'un bail, devient payable par un inscrit, ou est payée par lui sans être devenue payable, au cours de son année d'imposition, et que le total de la contrepartie des fournitures qui serait déductible dans le calcul du revenu de l'inscrit pour l'année pour l'application de la Loi de l'impôt sur le revenu s'il était un contribuable aux termes de cette loi et s'il n'était pas tenu compte de l'article 67.3 de cette loi, excède le montant, relatif à cette contrepartie, qui serait déductible dans le calcul du revenu de l'inscrit pour l'année pour l'application de cette loi s'il était un contribuable aux termes de cette loi et s'il n'était pas tenu compte de l'élément B des formules figurant à l'alinéa 7307(1)b), au paragraphe 7307(1.1) et à l'alinéa 7307(3)b) du Règlement de l'impôt sur le revenu, le montant obtenu par la formule ci-après est ajouté dans le calcul de la taxe nette de l'inscrit pour la période de déclaration indiquée :

2007, c. 18, s. 32(1)

(2) Paragraph 235(1)(b) of the English version of the Act is replaced by the following:

(b) the amount in respect of that consideration that would be deductible in computing the registrant's income for the year for the purposes of the Income Tax Act, if the registrant were a taxpayer under that Act and the formulae in paragraph 7307(1)(b), subsection 7307(1.1) and paragraph 7307(3)(b) of the Income Tax Regulations were read without reference to the description of B,

(3) Subsections (1) and (2) are deemed to have come into force on March 19, 2019.

75 (1) Part II of Schedule V to the Act is amended by adding the following after section 7.3:

7.4 A supply of a service if all or substantially all of the consideration for the supply is reasonably attributable to two or more particular services, each of which meets the following conditions:

(a) the particular service is rendered in the course of making the supply; and

(b) a supply of the particular service would be a supply included in any of sections 5 to 7.3, if the particular service were supplied separately.

(2) Subsection (1) applies to any supply made after March 19, 2019.

76 (1) Part I of Schedule VI to the Act is amended by adding the following after section 5:

6 A supply of an ovum, as defined in section 3 of the Assisted Human Reproduction Act.

(2) Subsection (1) is deemed to have come into force on March 20, 2019.

2012, c. 19, s. 32(2)

77 (1) Paragraphs (a) and (b) of the definition specified professional in section 1 of Part II of Schedule VI to the Act are replaced by the following:

(a) in respect of a supply included in any of sections 23, 24.1 and 35,

(i) a person that is entitled under the laws of a province to practise the profession of medicine, physiotherapy, occupational therapy, chiropody or podiatry, or

(ii) a registered nurse, and

(b) in respect of any other supply,

(i) a person that is entitled under the laws of a province to practise the profession of medicine, physiotherapy or occupational therapy, or

(ii) a registered nurse.

(2) Subsection (1) applies to any supply made after March 19, 2019.

78 (1) Schedule VII to the Act is amended by adding the following after section 12:

13 In vitro embryos, as defined in section 3 of the Assisted Human Reproduction Act.

(2) Subsection (1) is deemed to have come into force on March 20, 2019.

79 (1) Part I of Schedule X to the Act is amended by adding the following after section 26:

27 In vitro embryos, as defined in section 3 of the Assisted Human Reproduction Act.

(2) Subsection (1) is deemed to have come into force on March 20, 2019.

SOR/91-51; SOR/2006-162, s. 6

80 (1) The portion of subsection 21.3(4) of the Streamlined Accounting (GST/HST) Regulations before paragraph (a) is replaced by the following:

(4) For the purposes of this Part, if any of paragraphs 13(7)(g) to (i) of the Income Tax Act deems an amount to be the capital cost to a registrant of a passenger vehicle for the purposes of section 13 of that Act, the amount, if any, by which

(2) The description of B in paragraph 21.3(4)(b) of the Regulations is replaced by the following:

B is the amount deemed by any of paragraphs 13(7)(g) to (i) of the Income Tax Act to be the capital cost to the registrant of the vehicle for the purposes of section 13 of that Act,

(3) Subsections (1) and (2) are deemed to have come into force on March 19, 2019.

PART 3

2002, c. 22

2018, c. 12, s. 69(4)

81 (1) The description of B in paragraph (a) of the definition dutiable amount in section 2 of the Excise Act, 2001 is replaced by the following:

B is the percentage set out in paragraph 2(a) of Schedule 7, and

2018, c. 12, s. 69(4)

(2) Paragraphs (a) and (b) of the definition low-THC cannabis product in section 2 of the Act are replaced by the following:

(a) consisting entirely of

(i) fresh cannabis,

(ii) dried cannabis, or

(iii) oil that contains anything referred to in item 1 or 3 of Schedule 1 to the Cannabis Act and that is in liquid form at a temperature of 22 ± 2°C; 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 THCA into THC, as determined in accordance with the Cannabis Act. (produit du cannabis à faible teneur en THC)

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

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

fresh cannabis has the same meaning as in subsection 1(1) of the Cannabis Regulations. (cannabis frais)

THCA means delta-9-tetrahydrocannabinolic acid. (ATHC)

total THC of a cannabis product means the total quantity of THC, in milligrams, that the cannabis product could yield, taking into account the potential to convert THCA into THC, as determined in accordance with the Cannabis Act. (THC total)

(4) Subsections (1) to (3) come into force, or are deemed to have come into force, on May 1, 2019.

82 (1) Section 172 of the Act is replaced by the following:

Application of interest provisions

172 For greater certainty, if an amendment to this Act, or an amendment or enactment that relates to this Act, comes into force on, or applies as of, a particular day that is before the day on which the amendment or enactment is assented to or promulgated, the provisions of this Act and of the Customs Act, as the case may be, that relate to the calculation and payment of interest apply in respect of the amendment or enactment as though it had been assented to or promulgated on the particular day.

(2) Subsection (1) comes into force, or is deemed to have come into force, on May 1, 2019.

2018, c. 12, s. 84

83 (1) Paragraph (b) of the description of A in section 233.1 of the Act is replaced by the following:

(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 paragraph 4(a) of Schedule 7, as that paragraph read at that time;

(2) Subsection (1) comes into force, or is deemed to have come into force, on May 1, 2019.

2018, c. 12, s. 86

84 (1) Paragraph (b) of the description of A in section 234.1 of the Act is replaced by the following:

(2) Subsection (1) comes into force, or is deemed to have come into force, on May 1, 2019.

2018, c. 12, s. 87(2)

85 (1) Subparagraphs 238.1(2)(b)(i) and (ii) of the Act are replaced by the following:

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

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

(2) Subsection (1) comes into force, or is deemed to have come into force, on May 1, 2019.

2018, c. 12, s. 93

86 (1) Sections 1 to 4 of Schedule 7 to the Act are replaced by the following:

1 Any cannabis product produced in Canada or imported: the amount equal to

(a) in the case of dried cannabis, fresh cannabis, cannabis plants and cannabis plant seeds, the total of

(i) $0.25 per gram of flowering material included in the cannabis product or used in the production of the cannabis product,

(ii) $0.075 per gram of non-flowering material included in the cannabis product or used in the production of the cannabis product,

(iii) $0.25 per viable seed included in the cannabis product or used in the production of the cannabis product, and

(iv) $0.25 per vegetative cannabis plant included in the cannabis product or used in the production of the cannabis product; and

(b) in any other case, $0.0025 per milligram of the total THC of the cannabis product.

2 Any cannabis product produced in Canada: the amount obtained by multiplying the dutiable amount for the cannabis product by

(a) in the case of dried cannabis, fresh cannabis, cannabis plants and cannabis plant seeds, 2.5%; and

(b) in any other case, 0%.

3 Any imported cannabis product: the amount obtained by multiplying the value of the cannabis product by

(a) in the case of dried cannabis, fresh cannabis, cannabis plants and cannabis plant seeds, 2.5%; and

(b) in any other case, 0%.

4 Any cannabis product taken for use or unaccounted for: the amount obtained by multiplying the fair market value of the cannabis product by

(a) in the case of dried cannabis, fresh cannabis, cannabis plants and cannabis plant seeds, 2.5%; and

(b) in any other case, 0%.

(2) Subsection (1) comes into force, or is deemed to have come into force, on May 1, 2019 except that for the purpose of determining the amount of duty imposed on or after that day under subsection 158.19(2) of the Act on any cannabis product that is packaged before that day, section 2 of Schedule 7 to the Act is to be read as it read on April 30, 2019.

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Notice of Ways and Means Motion to implement certain provisions of the budget tabled in Parliament on March 19, 2019 and other measures

MINISTER OF FINANCE

Short Title

PART 1

Income Tax Act and Other Legislation

Income Tax Act

Canada Pension Plan

Amendments to the Act

Coming into Force

Cultural Property Export and Import Act

Employment Insurance Act

Income Tax Regulations

PART 2

GST/HST Measures

Excise Tax Act

Streamlined Accounting (GST/HST) Regulations

PART 3

Excise Act, 2001

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