Short Title

Marginal note:Short title

1 This Act may be cited as the Budget 2025 Implementation Act, No. 1.

PART 1Amendments to the Income Tax Act and Other Legislation

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

• 2 (1) Paragraph 12(1)(t) of the Income Tax Act is replaced by the following:

  • Marginal note:Investment tax credit

    (t) the amount deducted under subsection 127(5) or (6), 127.44(3), 127.45(6), 127.48(3), 127.49(6) or 127.491(10) in respect of a property acquired or an expenditure made in a preceding taxation year in computing the taxpayer's tax payable for a preceding taxation year to the extent that it was not included in computing the taxpayer's income for a preceding taxation year under this paragraph or is not included in an amount determined under paragraph 13(7.1)(e) or 37(1)(e), subparagraph 53(2)(c)(vi) to (vi.5) or (h)(ii) or for I in the definition undepreciated capital cost in subsection 13(21) or L in the definition cumulative Canadian exploration expense in subsection 66.1(6);

• (2) Subsection (1) is deemed to have come into force on April 16, 2024.

• 3 (1) The portion of subsection 13(7.1) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Deemed capital cost of certain property

    (7.1) For the purposes of this Act, where section 80 applied to reduce the capital cost to a taxpayer of a depreciable property or a taxpayer deducted an amount under subsection 127(5) or (6), 127.44(3), 127.45(6), 127.48(3), 127.49(6) or 127.491(10) in respect of a depreciable property or received or is entitled to receive assistance from a government, municipality or other public authority in respect of, or for the acquisition of, depreciable property, whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or as any other form of assistance other than

• (2) Paragraph 13(7.1)(e) of the Act is replaced by the following:

  • (e) where the property was acquired in a taxation year ending before the particular time, all amounts deducted under subsection 127(5) or (6), 127.44(3), 127.45(6), 127.48(3), 127.49(6) or 127.491(10) by the taxpayer for a taxation year ending before the particular time,

• (3) The formula in the definition undepreciated capital cost in subsection 13(21) of the Act is replaced by the following:

  (A + B + C + D + D.1) − (E + E.1 + E.2 + F + G + H + I + J + K)

• (4) The definition undepreciated capital cost in subsection 13(21) of the Act is amended by adding the following after the description of E.1:

  E.2

  is the total of all amounts each of which is an amount by which the undepreciated capital cost to the taxpayer of depreciable property of that class is required to be reduced at or before that time because of subsection 81(6),

• (5) The description of I in the definition undepreciated capital cost in subsection 13(21) of the Act is replaced by the following:

  I

  is the total of all amounts deducted under subsection 127(5) or (6), 127.44(3), 127.45(6), 127.48(3), 127.49(6) or 127.491(10) in respect of a depreciable property of the class of the taxpayer, in computing the taxpayer's tax payable for a taxation year ending before that time and subsequent to the disposition of that property by the taxpayer,

• (6) The portion of paragraph 13(24)(a) of the Act before subparagraph (i) is replaced by the following:

  • (a) subject to paragraph (b), for the purposes of the description of A in the definition undepreciated capital cost in subsection (21) and of sections 127, 127.1, 127.44, 127.45, 127.48, 127.49 and 127.491, the property is deemed

• (7) Subsections (1), (2), (5) and (6) are deemed to have come into force on April 16, 2024.

• (8) Subsections (3) and (4) are deemed to have come into force on December 31, 2023.

• 4 (1) The description of E in the definition adjusted taxable income in subsection 18.2(1) of the Act is amended by striking out "and" at the end of paragraph (a) and by adding the following after that paragraph:

  • (a.1) the amount claimed by the taxpayer for the year under paragraph 111(1)(a), to the extent that amount does not reduce the taxpayer's taxable income for the year, as determined for the purpose of paragraph (b) in the description of D, and

• (2) Paragraph (g) of the description of B in the definition adjusted taxable income in subsection 18.2(1) of the Act is replaced by the following:

  • (g) an amount deducted by the taxpayer under subsection 104(6) in computing its income for the year, except to the extent of any portion of the amount that

    • (i) has been designated under subsection 104(19) for the year, or

    • (ii) is attributable to an amount that would, in the absence of subsection (2), have been deductible in computing the taxpayer's income for the year,

• (3) The portion of paragraph (l) of the description of B in the definition adjusted taxable income in subsection 18.2(1) of the Act before subparagraph (ii) is replaced by the following:

  • (l) an amount deducted under subsection 127(5) or (6), 127.44(3), 127.45(6), 127.48(3), 127.49(6) or 127.491(10) in respect of a property acquired in a preceding taxation year in computing the taxpayer's tax payable for a preceding taxation year to the extent that it

    • (i) is included in an amount determined under paragraph 13(7.1)(e) or subparagraph 53(2)(c)(vi) to (vi.5) or (h)(ii) or for I in the definition undepreciated capital cost in subsection 13(21), and

• (4) Paragraph (c) of the definition excluded interest in subsection 18.2(1) of the Act is replaced by the following:

  • (c) where the payee is a financial institution group entity, the payer

    • (i) is a financial institution group entity, or

    • (ii) would be a special purpose loss corporation, if the reference to "financial holding corporation" in paragraph (a) of the definition special purpose loss corporation were read as a reference to "financial institution group entity";

• (5) Paragraphs (b) and (c) of the definition special purpose loss corporation in subsection 18.2(1) of the Act are replaced by the following:

  • (b) is formed or exists solely for the purpose of generating a loss of the particular corporation from the interest; and

  • (c) would, in the absence of this section, have a loss for the year resulting from the interest that is, or will be, utilized exclusively by a financial institution group entity that is an eligible group entity in respect of the particular corporation. (société à usage déterminé ayant subi des pertes)

• (6) Subsections (1) and (2) apply to taxation years that end after August 15, 2025.

• (7) Subsection (3) is deemed to have come into force on April 16, 2024.

• (8) Subsections (4) and (5) apply to taxation years of a taxpayer that end on or after August 12, 2024.

• 5 (1) Subsection 37(1) of the Act is amended by adding the following after paragraph (a):

  • (b) the total of all amounts each of which is an expenditure of a capital nature that is

    • (i) made by the taxpayer in the year or in a preceding taxation year on scientific research and experimental development carried on in Canada, directly undertaken by or on behalf of the taxpayer, and related to a business of the taxpayer, and

    • (ii) in respect of property acquired that would be depreciable property of the taxpayer if this section were not applicable in respect of the property, other than land or a leasehold interest in land,

• (2) Paragraph 37(1)(d) of the Act is replaced by the following:

  • (d) the total of all amounts each of which is the amount of any government assistance or non-government assistance (as those terms are defined in subsection 127(9)) in respect of an expenditure described in paragraph (a) or (b) that, at the taxpayer's filing-due date for the year, the taxpayer has received, is entitled to receive or can reasonably be expected to receive,

• (3) Subsection 37(6) of the Act is replaced by the following:

  • Marginal note:Expenditures of a capital nature

    (6) For the purpose of section 13, an amount claimed under subsection (1) that may reasonably be considered to be in respect of a property described in paragraph (1)(b) is deemed to be an amount allowed to the taxpayer in respect of the property under regulations made under paragraph 20(1)(a), and for that purpose the property is deemed to be of a separate prescribed class.

• (4) Clause 37(6.1)(a)(i)(B) of the Act is replaced by the following:

  • (B) the amount determined immediately before that time in respect of the taxpayer under paragraph (1)(b), or

• (5) Clause 37(8)(a)(ii)(A) of the Act is amended by striking out "or" at the end of subclause (I), by replacing "and" with "or" at the end of subclause (II) and by adding the following after subclause (II):

  • (III) an expenditure of a capital nature that, at the time it was incurred, was for the provision of premises, facilities or equipment, where at that time it was intended that it would be used during all or substantially all of its operating time in its expected useful life for — or that all or substantially all of its value would be consumed in — the prosecution of scientific research and experimental development in Canada, and

• (6) Subclause 37(8)(a)(ii)(B)(II) of the Act is replaced by the following:

  • (I) an expenditure of a current nature for, and all or substantially all of which was attributable to, the lease of premises, facilities or equipment for the prosecution of scientific research and experimental development in Canada, other than an expenditure in respect of general purpose office equipment or furniture,

  • (II) an expenditure for the prosecution of scientific research and experimental development in Canada directly undertaken on behalf of the taxpayer,

  • (III) an expenditure described in subclause (A)(III), other than an expenditure in respect of general purpose office equipment or furniture,

• (7) Clause 37(8)(a)(ii)(B) of the Act is amended by striking out "or" at the end of subclause (IV) and by adding the following after subclause (V):

  • (VI) 1/2 of any other expenditure of a current nature in respect of the lease of premises, facilities or equipment used primarily for the prosecution of scientific research and experimental development in Canada, other than an expenditure in respect of general purpose office equipment or furniture;

• (8) Subsection 37(8) of the Act is amended by striking out "and" at the end of paragraph (c), by adding "and" at the end of paragraph (d) and by adding the following after paragraph (d):

  • (e) despite paragraph (a), references to expenditures on or in respect of scientific research and experimental development must not include

  • (i) any capital expenditure made in respect of the acquisition of a building or a leasehold interest therein, other than a prescribed special-purpose building,

  • (ii) any outlay or expense made or incurred for the use of, or the right to use, a building other than a prescribed special-purpose building,

  • (iii) any payment made by a taxpayer to a corporation, or to an approved research institute or an approved association with which the taxpayer does not deal at arm's length, to the extent that the amount of the payment may reasonably be considered to have been made to enable the recipient to acquire a building or a leasehold interest in a building or to pay an amount in respect of the rental expense in respect of a building, and

  • (iv) any payment made by a taxpayer to an approved university, college or organization, to the extent that the amount of the payment may reasonably be considered to have been made to enable the recipient to acquire a building, or a leasehold interest in a building, in which the taxpayer has, or may reasonably be expected to acquire, an interest.

• (9) Subsections 37(14) and (15) of the Act are repealed.

• (10) Subsections (1) to (9) apply in respect of property acquired on or after December 16, 2024 and, in the case of lease costs, to expenditures incurred on or after December 16, 2024.

• 6 (1) The portion of subparagraph 39(9)(b)(i) of the Act before clause (A) is replaced by the following:

  • (i) the total of all amounts each of which is twice the amount deducted by the taxpayer under section 110.6, 110.61 or 110.62 in computing the taxpayer's taxable income for a preceding taxation year that

• (2) Subsection (1) is deemed to have come into force on January 1, 2024.

• 7 (1) The portion of subparagraph 40(1)(a)(iii) of the Act before clause (A) is replaced by the following:

  • (iii) subject to subsections (1.1) to (1.4), such amount as the taxpayer may claim

• (2) Subsection 40(1.3) of the Act is replaced by the following:

  • Marginal note:Reserve — dispositions to employee ownership trusts

    (1.3) In computing the amount that a taxpayer may claim under subparagraph (1)(a)(iii) in computing the taxpayer's gain from the disposition of a share of the capital stock of a corporation, that subparagraph is to be read as if the references in that subparagraph to "1/5" and "4" were references to "1/10" and "9" respectively, if the shares were disposed of by the taxpayer under a qualifying business transfer.

  • Marginal note:Reserve — dispositions to worker cooperatives

    (1.4) In computing the amount that a taxpayer may claim under subparagraph (1)(a)(iii) in computing the taxpayer's gain from the disposition of a share of the capital stock of a corporation, that subparagraph is to be read as if the references in that subparagraph to "1/5" and "4" were references to "1/10" and "9" respectively, if the shares were disposed of by the taxpayer under a qualifying cooperative conversion.

• (3) Subsections (1) and (2) apply in respect of transactions that occur on or after January 1, 2024.

• 8 (1) The definition common share in subsection 44.1(1) of the Act is repealed.

• (2) The portion of the definition eligible small business corporation share in subsection 44.1(1) of the Act before paragraph (a) is replaced by the following:

  eligible small business corporation share

  eligible small business corporation share of an individual means a share issued by a corporation to the individual if

• (3) Paragraph (b) of the definition eligible small business corporation share in subsection 44.1(1) of the Act is replaced by the following:

  • (b) immediately before and after the share was issued, the total carrying value of the assets of the corporation and corporations related to it did not exceed $100,000,000. (action déterminée de petite entreprise)

• (4) Paragraph (b) of the definition qualifying disposition in subsection 44.1(1) of the Act is replaced by the following:

  • (b) throughout the period during which the individual owned the share, a share of an active business corporation; and

• (5) Paragraph (a) of the definition replacement share in subsection 44.1(1) of the Act is replaced by the following:

  • (a) acquired by the individual in the year or in the following calendar year; and

• (6) The portion of subsection 44.1(7) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Special rule — active business corporation share exchanges

    (7) For the purpose of this section, where an individual receives shares of the capital stock of a particular corporation (in this subsection referred to as the "new shares") as the sole consideration for the disposition by the individual of shares of the particular corporation or of another corporation (in this subsection referred to as the "exchanged shares"), the new shares are deemed to be eligible small business corporation shares of the individual and shares of the capital stock of an active business corporation that were owned by the individual throughout the period that the exchanged shares were owned by the individual, if

• (7) The portion of subsection 44.1(9) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Special rule — qualifying disposition

    (9) A disposition of a share of an active business corporation (in this subsection referred to as the "subject share") by an individual that, but for this subsection, would be a qualifying disposition of the individual is deemed not to be a qualifying disposition of the individual unless the active business of the corporation referred to in paragraph (a) of the definition active business corporation in subsection (1) was carried on primarily in Canada

• (8) Subsection (1) is deemed to have come into force on January 1, 2025.

• (9) Subsections (2) to (7) apply to dispositions that occur on or after January 1, 2025.

• 9 (1) Clause 53(1)(e)(ix)(A) of the Act is replaced by the following:

  • (A) the taxpayer's share of the amount (other than an amount that is received as an excluded loan as defined in subsection 12(11)) of any assistance or benefit that the partnership received or became entitled to receive after 1971 and before that time from a government, municipality or other public authority, whether as a grant, subsidy, forgivable loan, deduction from royalty or tax, investment allowance or any other form of assistance or benefit, in respect of or related to a Canadian resource property or an exploration or development expense incurred in Canada

• (2) Subparagraph 53(1)(e)(xiii) of the Act is replaced by the following:

  • (xiii) any amount required by subsection 127(30) or 127.45(17), section 127.48, subsection 127.49(17) or section 127.491 or 211.92 to be added to the taxpayer's tax otherwise payable under this Act for a taxation year that ended before that time in respect of the interest in the partnership;

• (3) Paragraph 53(2)(c) of the Act is amended by adding the following after subparagraph (vi.4):

  • (vi.5) an amount equal to that portion of all amounts deemed deducted under subsection 127.491(10) in computing the tax otherwise payable by the taxpayer under this Part for the taxpayer's taxation years ending before that time that may reasonably be attributed to amounts added in computing the clean electricity investment tax credit (as defined in subsection 127.491(1)) of the taxpayer because of subsection 127.491(12),

• (4) Subparagraph 53(2)(k)(i) of the Act is amended by striking out "or" at the end of clause (C), by replacing "and" at the end of clause (D) with "or" and by adding the following after clause (D):

  • (E) an amount received as an excluded loan as defined in subsection 12(11), and

• (5) Subsections (1) and (4) are deemed to have come into force on January 1, 2020 and apply to loans made after December 31, 2019.

• (6) Subsections (2) and (3) are deemed to have come into force on April 16, 2024.

• 10 (1) Paragraph 55(5)(c) of the Act is replaced by the following:

  • (c) the income earned or realized by a corporation for a period throughout which it was a private corporation is deemed to be its income for the period otherwise determined on the assumption that

    • (i) no amounts were deductible by the corporation under section 37.1 of this Act, as that section applies for taxation years that ended before 1995, or paragraph 20(1)(gg) of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, and

    • (ii) any amount deductible under section 113 and included in the corporation's capital dividend account (as defined in subsection 89(1)) under paragraph (h) of that definition was not included in the corporation's income;

• (2) Subsection (1) applies to taxation years that begin on or after April 7, 2022.

• 11 (1) Subparagraph 56(1)(a)(i) of the Act is amended by striking out "and" at the end of clause (F), by adding "and" at the end of clause (G) and by adding the following after clause (G):

  • (H) an amount paid or transferred from a registered pension plan, in respect of an unlocated individual, to an unclaimed property authority,

• (2) Subsection (1) applies in respect of amounts paid or transferred to an unclaimed property authority after December 31, 2026.

• 12 (1) Subparagraph (ii) of the description of A in paragraph 64(a) of the Act is amended by striking out "and" at the end of clause (P) and by adding the following after clause (Q):

  • (R) where the taxpayer has a severe and prolonged impairment in physical functions, for the cost of an ergonomic work chair prescribed by a medical practitioner, including related amounts paid for an ergonomic assessment to a person engaged in the business of providing such services,

  • (S) where the taxpayer has a severe and prolonged impairment in physical functions, for the cost of a bed positioning device prescribed by a medical practitioner, including related amounts paid for an ergonomic assessment to a person engaged in the business of providing such services,

  • (T) where the taxpayer has a severe and prolonged impairment in physical functions, for the cost of a mobile computer cart prescribed by a medical practitioner,

  • (U) where the taxpayer has an impairment in physical or mental functions, for the cost of an alternative input device prescribed by a medical practitioner to allow the taxpayer to use a computer,

  • (V) where the taxpayer has an impairment in physical or mental functions, for the cost of a digital pen device prescribed by a medical practitioner to allow the taxpayer to use a computer,

  • (W) where the taxpayer has a vision impairment, for the cost of a navigation device for low vision that is prescribed by a medical practitioner,

  • (X) where the taxpayer has an impairment in mental functions, for the cost of memory or organizational aids that are prescribed by a medical practitioner, and

  • (Y) where the taxpayer is blind or profoundly deaf or has severe autism, severe diabetes, severe epilepsy, severe mental impairment or a severe and prolonged impairment that markedly restricts the use of the taxpayer's arms or legs, for the cost of medical expenses described in subparagraphs 118.2(2)(l)(i) to (iv) if the references in those subparagraphs to the "patient" were read as references to the "taxpayer",

• (2) Subsection (1) applies to the 2024 and subsequent taxation years.

• 13 (1) The definition assistance in subsection 66(15) of the Act is replaced by the following:

  assistance

  assistance means any amount, other than a prescribed amount or an excluded loan as defined in subsection 12(11), received or receivable at any time from a person or government, municipality or other public authority whether the amount is by way of a grant, subsidy, rebate, forgivable loan, deduction from royalty or tax, rebate of royalty or tax, investment allowance or any other form of assistance or benefit; (montant à titre d'aide)

• (2) Subsection (1) is deemed to have come into force on January 1, 2020 and applies to loans made after December 31, 2019.

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

  • (e) the amount determined by the formula

    A(B − C)

    where

    A

    is

    • (i) for taxation years that end before 2030, 15%,

    • (ii) for taxation years that begin before 2030 and end after 2029, the amount determined by the formula

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

      where

      I

      is the total of all reaccelerated Canadian development expenses incurred by the taxpayer before 2030 and in the taxation year,

      J

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

      K

      is the total of all reaccelerated Canadian development expenses incurred by the taxpayer after 2029 and in the taxation year, and

    • (iii) for taxation years that begin after 2029, 7.5%,

    B

    is the total of all reaccelerated 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) Paragraph (b) of the definition accelerated Canadian development expense in subsection 66.2(5) of the Act is replaced by the following:

  • (b) is incurred after November 20, 2018 and before 2025, and

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

  reaccelerated Canadian development expense

  reaccelerated 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 2024 and before 2034, other than expenses deemed to have been incurred on December 31, 2033 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 2024; (frais d'aménagement au Canada réaccélérés)

• (4) Subsections (1) to (3) are deemed to have come into force on January 1, 2025.

• 15 (1) Subsection 66.4(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 2030, 5%,

    • (ii) for taxation years that begin before 2030 and end after 2029, the amount determined by the formula

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

      where

      I

      is the total of all reaccelerated Canadian oil and gas property expenses incurred by the taxpayer before 2030 and in the taxation year,

      J

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

      K

      is the total of all reaccelerated Canadian oil and gas property expenses incurred by the taxpayer after 2029 and in the taxation year, and

    • (iii) for taxation years that begin after 2029, 2.5%,

    B

    is the total of all reaccelerated 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) Paragraph (b) of the definition accelerated Canadian oil and gas property expense in subsection 66.4(5) of the Act is replaced by the following:

  • (b) is incurred after November 20, 2018 and before 2025; (frais à l'égard de biens canadiens relatifs au pétrole et au gaz accélérés)

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

  reaccelerated Canadian oil and gas property expense

  reaccelerated 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

    • (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, and

  • (b) is incurred after 2024 and before 2034; (frais à l'égard de biens canadiens relatifs au pétrole et au gaz réaccélérés)

• (4) Subsections (1) to (3) are deemed to have come into force on January 1, 2025.

• 16 (1) Subclause 66.8(1)(a)(ii)(B)(I) of the Act is replaced by the following:

  • (I) the total of all amounts required by subsections 127(8), 127.44(11), 127.45(8), 127.48(12), 127.49(8) and 127.491(12) in respect of the partnership to be added in computing the investment tax credit, the CCUS tax credit (as defined in subsection 127.44(1)), the clean technology investment tax credit (as defined in subsection 127.45(1)), the clean hydrogen tax credit (as defined in subsection 127.48(1)), the CTM investment tax credit (as defined in subsection 127.49(1)) or the clean electricity investment tax credit (as defined in subsection 127.491(1)) of the taxpayer in respect of the fiscal period, and

• (2) Subsection (1) is deemed to have come into force on April 16, 2024.

• 17 (1) Subparagraph 69(11)(a)(i) of the Act is replaced by the following:

  • (i) any deduction (other than a deduction under section 110.6, 110.61 or 110.62 in respect of a capital gain from a disposition of a share acquired by the taxpayer in an acquisition to which subsection 85(3) or 98(3) applied) in computing income, taxable income, taxable income earned in Canada or tax payable under this Act, or

• (2) Subsection (1) is deemed to have come into force on January 1, 2024.

• 18 (1) Paragraphs 74.2(2)(a) and (b) of the Act are replaced by the following:

  • (a) for the purposes of sections 3 and 111, as they apply for the purposes of sections 110.6 to 110.62, such portion of the gain or loss as may reasonably be considered to relate to the disposition of a property by another person in the year shall be deemed to arise from the disposition of that property by the individual in the year; and

  • (b) for the purposes of sections 110.6 to 110.62, that property shall be deemed to have been disposed of by the individual on the day on which it was disposed of by the other person.

• (2) Subsection (1) applies to the 2024 and subsequent taxation years.

• 19 (1) Subsection 74.5(12) of the Act is amended by adding "or" at the end of paragraph (b) and by replacing paragraphs (c) and (d) with the following:

  • (c) to the individual's spouse or common-law partner, while the property (or property substituted for it) is held under a TFSA or FHSA of which the spouse or common-law partner is the holder and to the extent that the spouse or common-law partner does not have

    • (i) an excess TFSA amount (as defined in subsection 207.01(1)), at the time of the contribution of the property under the TFSA, or

    • (ii) an excess FHSA amount (as defined in subsection 207.01(1)), at the time of the contribution of the property under the FHSA.

• (2) Subsection (1) is deemed to have come into force on April 1, 2023.

• 20 (1) Subsection 81(1) of the Act is amended by adding the following after paragraph (c.1):

  • Marginal note:Ship of resident corporations — gains

    (c.2) the portion of a taxable capital gain of the taxpayer for the year from the disposition of a vessel (as defined in subsection (13(21)), including the furniture, fittings, radiocommunication equipment and other equipment attached to the vessel, that can reasonably be considered to have accrued while the vessel

    • (i) was property of a corporation resident in Canada (if this Act were read without reference to subsection 250(4)) that satisfied the conditions set out in paragraphs 250(6)(a) and (b), and

    • (ii) was used by the corporation solely to earn income from international shipping;

  • Marginal note:Property pertaining to ships

    (c.3) taxable capital gains of the taxpayer for the year from the disposition of personal or movable property that pertained solely to the operation of vessels while the vessels met the conditions in subparagraphs (c.2)(i) and (ii);

• (2) Subsection 81(1) of the Act is amended by adding the following after paragraph (c.3):

  • Marginal note:Ship of resident corporations — excess recapture

    (c.4) the amount, if any, determined by the formula

    A × [B ÷ (B + C)]

    where

    A

    is an amount included under subsection 13(1), in respect of a prescribed class, in computing the taxpayer's income for the year,

    B

    is the amount determined for E.2 in the definition undepreciated capital cost in subsection 13(21) in respect of the prescribed class at the end of the year, and

    C

    is the amount determined for E in the definition undepreciated capital cost in subsection 13(21) in respect of the prescribed class at the end of the year;

• (3) Subsection 81(1) of the Act is amended by striking out "or" at the end of paragraph (s), by adding "or" at the end of paragraph (t) and by adding the following after paragraph (t):

  • Marginal note:Disability benefits

    (u) an amount received under the Canada Disability Benefit Act.

• (4) Section 81 of the Act is amended by adding the following after subsection (5):

  • Marginal note:Ship of resident corporations — undepreciated capital cost

    (6) If, at the end of a taxation year of a taxpayer, the taxpayer owns a vessel (as defined in subsection 13(21)) it used in the year to earn income that would not be included in computing its income because of paragraph (1)(c.1), the undepreciated capital cost to the taxpayer of the prescribed class that includes the vessel is reduced, at the time that is immediately before the end of the year, by the greatest amount that the taxpayer could have deducted under paragraph 20(1)(a) in respect of property of that class in computing its income for the year, but for paragraph 18(1)(c).

• (5) Subsection (1) applies to the portion of a taxable capital gain that accrues on or after December 31, 2023.

• (6) Subsections (2) and (4) are deemed to have come into force on December 31, 2023.

• (7) Subsection (3) applies to taxation years that begin after 2024.

• 21 (1) Subparagraph 84.1(2.31)(f)(ii) of the Act is replaced by the following:

  • (ii) the child, or at least one member of the group of children, as the case may be, is actively engaged on a regular, continuous and substantial basis (including within the meaning of paragraph 120.4(1.1)(a)) in the activities of a relevant business of the subject corporation or a relevant group entity, and

• (2) The portion of paragraph 84.1(2.31)(g) of the Act before subparagraph (i) is replaced by the following:

  • (g) subject to subsection (2.3), no later than 36 months after the disposition time or such greater period as is reasonable in the circumstances, the taxpayer and a spouse or common-law partner of the taxpayer have taken reasonable steps to

• (3) Subparagraph 84.1(2.32)(g)(ii) of the Act is replaced by the following:

  • (ii) the child, or at least one member of the group of children, as the case may be, is actively engaged on a regular, continuous and substantial basis (including within the meaning of paragraph 120.4(1.1)(a)) in the activities of a relevant business of the subject corporation or a relevant group entity, and

• (4) The portion of paragraph 84.1(2.32)(h) of the Act before subparagraph (i) is replaced by the following:

  • (h) subject to subsection (2.3), no later than 60 months after the disposition time or such greater period as is reasonable in the circumstances, the taxpayer and a spouse or common-law partner of the taxpayer have taken reasonable steps to

• (5) Subsections (1) to (4) are deemed to have come into force on January 1, 2024.

• 22 (1) Paragraph 85.1(4)(a) of the Act is replaced by the following:

  • (a) it is the case that

    • (i) the disposition is part of a transaction or event or a series of transactions or events that includes a disposition (referred to in this paragraph as the "relevant disposition") of a property that is

      • (A) the share,

      • (B) property (other than any property that is received by the taxpayer as consideration for the disposition and to which paragraph (3)(a) would apply in the absence of this subsection) substituted for the share, or

      • (C) property any of the fair market value of which is derived, directly or indirectly, from property referred to in clause (A) or (B), and

    • (ii) the relevant disposition is to a person or partnership (in this subsection and subsection (4.1) referred to as the "acquirer") that

      • (A) immediately after the transaction, event or series, deals at arm's length with the taxpayer or a person that is, at any time during the period that begins at the time of the disposition and ends immediately after the transaction, event or series, a particular person in respect of the taxpayer, unless

        • (I) the acquirer is a foreign affiliate of the taxpayer or of a successor corporation of the taxpayer in respect of which the taxpayer or the successor corporation, as the case may be, has a qualifying interest (within the meaning of paragraph 95(2)(m)) at the time of the transaction or event or throughout the series, or

        • (II) at the time of the relevant disposition, the property that is disposed of is not excluded property (as defined in subsection 95(1)) of a foreign affiliate of the taxpayer, of a person that is, at any time during the period, a particular person in respect of the taxpayer or of a partnership, any member of which is, at any time during the period, the taxpayer or a particular person in respect of the taxpayer, or

      • (B) immediately after the relevant disposition, is a non-resident person or partnership that does not deal at arm's length with the taxpayer or with a person that is, at any time during the period that begins at the time of the disposition and ends immediately after the relevant disposition, a particular person in respect of the taxpayer, unless

        • (I) at the time of the transaction or event or throughout the series, the acquirer is a non-resident corporation that is, for the purposes of section 17, a controlled foreign affiliate of the taxpayer or of a successor corporation of the taxpayer, or

        • (II) the relevant disposition is of a share of the capital stock of a corporation resident in Canada; or

• (2) Section 85.1 of the Act is amended by adding the following after subsection (4):

  • Marginal note:Interpretation — partnerships

    (4.1) In applying paragraph (4)(a),

    • (a) a taxpayer or a particular person in respect of the taxpayer (each of which is referred to in this subsection as a "relevant taxpayer") and an acquirer are deemed to be dealing with each other at arm's length, at any time, for the purposes of clause (4)(a)(ii)(A) if,

      • (i) where either the relevant taxpayer or the acquirer is a partnership and the other party is not, any member of the partnership deals at arm's length, at that time, with the other party, or

      • (ii) where both the relevant taxpayer and the acquirer are partnerships, the relevant taxpayer or any member of the relevant taxpayer deals at arm's length, at that time, with the acquirer or any member of the acquirer; and

    • (b) an acquirer is deemed to be a non-resident person with whom the relevant taxpayer does not deal at arm's length, at any time, for the purposes of clause (4)(a)(ii)(B) if,

      • (i) where either the relevant taxpayer or the acquirer is a partnership and the other party is not,

        • (A) any member of the partnership does not deal at arm's length, at that time, with the other party, and

        • (B) the acquirer — or, where the acquirer is a partnership, any member of the acquirer — is a non-resident person at that time, or

      • (ii) where both the relevant taxpayer and the acquirer are partnerships,

        • (A) the relevant taxpayer or any member of the relevant taxpayer does not deal at arm's length, at that time, with the acquirer or any member of the acquirer, and

        • (B) any member of the acquirer is a non-resident person at that time.

  • Marginal note:Definitions

    (4.2) The following definitions apply in this subsection and subsections (4) and (4.1).

    particular person

    particular person, in respect of a taxpayer at any time, means a person that is at that time

    • (a) resident in Canada and not dealing at arm's length with the taxpayer;

    • (b) a successor corporation of the taxpayer; or

    • (c) resident in Canada and not dealing at arm's length with a person described in paragraph (a) or (b). (personne déterminée)

    successor corporation

    successor corporation of a particular corporation means

    • (a) a corporation of which the particular corporation is a predecessor corporation (within the meaning of subsection 87(1));

    • (b) a corporation into which the particular corporation was wound-up in a winding-up to which subsection 88(1) applied; or

    • (c) a successor corporation of a successor corporation of the particular corporation. (société remplaçante)

• (3) Subsections (1) and (2) apply in respect of dispositions that occur on or after August 15, 2025.

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

  • Marginal note: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), (v) 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 84.1(2.31) and (2.32), sections 110.61 and 110.62, subsection 127(10.2), section 139.1, subsection 152(4.3), the determination of D in the definition undepreciated capital cost in subsection 13(21), the determination of L in the definition cumulative Canadian exploration expense in subsection 66.1(6) and the definitions qualifying business transfer and qualifying cooperative conversion in subsection 248(1), the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation;

• (2) Paragraph 87(2)(j.6) of the Act, as enacted by subsection (1), is replaced by the following:

  • Marginal note: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), (v) 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 84.1(2.31) and (2.32), sections 110.61 and 110.62, subsections 127(10.2), (10.31) and (10.32), section 139.1, subsection 152(4.3), the determination of D in the definition undepreciated capital cost in subsection 13(21), the determination of L in the definition cumulative Canadian exploration expense in subsection 66.1(6) and the definitions qualifying business transfer and qualifying cooperative conversion in subsection 248(1), the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation;

• (3) Paragraph 87(2)(qq.1) of the Act is replaced by the following:

  • Marginal note:Certain investment tax credits

    (qq.1) for the purposes of sections 127.44, 127.45, 127.48, 127.49 and 127.491 and Part XII.7, the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation;

• (4) Paragraphs 87(8.3)(b) and (c) of the Act are replaced by the following:

  • (b) the foreign merger is part of a transaction or event or a series of transactions or events that includes a disposition (referred to in paragraph (c) as the "relevant disposition") of a property that is

    • (i) a share of the capital stock of the new foreign corporation,

    • (ii) property substituted for a share of the capital stock of the new foreign corporation, or

    • (iii) property any of the fair market value of which is derived, directly or indirectly, from property referred to in subparagraph (i) or (ii); and

  • (c) the relevant disposition is to a person or partnership (referred to in this subsection and subsection (8.31) as the "acquirer") that

    • (i) immediately after the transaction, event or series, deals at arm's length with the taxpayer or a person that is, at any time during the period that begins at the time of the foreign merger and ends immediately after the transaction, event or series, a particular person in respect of the taxpayer, unless

      • (A) the acquirer is a foreign affiliate of the taxpayer or of a successor corporation of the taxpayer in respect of which the taxpayer or the successor corporation, as the case may be, has a qualifying interest (within the meaning of paragraph 95(2)(m)) at the time of the transaction or event or throughout the series, or

      • (B) at the time of the relevant disposition, the property that is disposed of is not excluded property (as defined in subsection 95(1)) of a foreign affiliate of the taxpayer, of a person that is, at any time during the period, a particular person in respect of the taxpayer or of a partnership, any member of which is, at any time during the period, the taxpayer or a particular person in respect of the taxpayer, or

    • (ii) immediately after the relevant disposition, is a non-resident person or partnership that does not deal at arm's length with the taxpayer or with a person that is, at any time during the period that begins at the time of the foreign merger and ends immediately after the relevant disposition, a particular person in respect of the taxpayer, unless

      • (A) at the time of the transaction or event or throughout the series, the acquirer is a non-resident corporation that is, for the purposes of section 17, a controlled foreign affiliate of the taxpayer or of a successor corporation of the taxpayer, or

      • (B) the relevant disposition is of a share of the capital stock of a corporation resident in Canada.

• (5) Section 87 of the Act is amended by adding the following after subsection (8.3):

  • Marginal note:Interpretation — partnerships

    (8.31) In applying paragraph (8.3)(c),

    • (a) a taxpayer or a particular person in respect of the taxpayer (each of which is referred to in this subsection as the "relevant taxpayer") and an acquirer are deemed to be dealing with each other at arm's length, at any time, for the purposes of subparagraph (8.3)(c)(i) if,

      • (i) where either the relevant taxpayer or the acquirer is a partnership and the other party is not, any member of the partnership deals at arm's length, at that time, with the other party, or

      • (ii) where both the relevant taxpayer and the acquirer are partnerships, the relevant taxpayer or any member of the relevant taxpayer deals at arm's length, at that time, with the acquirer or any member of the acquirer;

    • (b) an acquirer is deemed to be a non-resident person with whom the relevant taxpayer does not deal at arm's length, at any time, for the purposes of subparagraph (8.3)(c)(ii) if,

      • (i) where either the relevant taxpayer or the acquirer is a partnership and the other party is not,

        • (A) any member of the partnership does not deal at arm's length, at that time, with the other party, and

        • (B) the acquirer — or, where the acquirer is a partnership, any member of the acquirer — is a non-resident person at that time, or

      • (ii) where both the relevant taxpayer and the acquirer are partnerships,

        • (A) the relevant taxpayer or any member of the relevant taxpayer does not deal at arm's length, at that time, with the acquirer or any member of the acquirer, and

        • (B) any member of the acquirer is a non-resident person at that time; and

    • (c) particular person and successor corporation have the same meanings as in subsection 85.1(4.2).

• (6) Subsection (1) is deemed to have come into force on January 1, 2024.

• (7) Subsection (2) applies to taxation years that begin on or after December 16, 2024.

• (8) Subsection (3) is deemed to have come into force on April 16, 2024.

• (9) Subsections (4) and (5) apply in respect of dispositions that occur on or after August 15, 2025.

• 24 (1) Paragraph 88(1)(e.31) of the Act is replaced by the following:

  • (e.31) for the purposes of sections 127.44, 127.45, 127.48, 127.49 and 127.491 and Part XII.7, at the end of any particular taxation year ending after the subsidiary was wound up, the parent is deemed to be the same corporation as, and a continuation of, the subsidiary;

• (2) Paragraph 88(2)(c) of the Act is replaced by the following:

  • (c) for the purpose of computing the income of the corporation for its taxation year that includes the particular time, paragraph 12(1)(t) shall be read as follows:

    • "(t) the amount deducted under subsection 127(5) or (6), 127.44(3), 127.45(6), 127.48(3), 127.49(6) or 127.491(10) in computing the taxpayer's tax payable for the year or a preceding taxation year to the extent that it was not included under this paragraph in computing the taxpayer's income for a preceding taxation year or is not included in an amount determined under paragraph 13(7.1)(e) or 37(1)(e) or subparagraph 53(2)(c)(vi) to (vi.5) or (h)(ii) or the amount determined for I in the definition undepreciated capital cost in subsection 13(21) or L in the definition cumulative Canadian exploration expense in subsection 66.1(6);".

• (3) Subsection 88(3.3) of the Act is replaced by the following:

  • Marginal note:Suppression election

    (3.3) For the purposes of paragraph (3)(a), if the liquidation and dissolution is a qualifying liquidation and dissolution of the disposing affiliate and the taxpayer would, in the absence of this subsection and, for greater certainty, after taking into account any election under subsection 93(1), realize a capital gain (the amount of which is referred to in subsection (3.4) as the "capital gain amount") from the disposition of a disposed share, the taxpayer may elect, in accordance with prescribed rules, that distributed property that was, immediately before the disposition, capital property (that is a share of the capital stock of another foreign affiliate of the taxpayer) of the disposing affiliate be deemed to have been disposed of by the disposing affiliate to the taxpayer for proceeds of disposition equal to the amount claimed (referred to in subsection (3.4) as the "claimed amount") by the taxpayer in the election.

• (4) Subsections (1) and (2) are deemed to have come into force on April 16, 2024.

• (5) Subsection (3) applies in respect of dispositions that occur on or after August 9, 2022.

• 25 (1) The definition capital dividend account in subsection 89(1) 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 total of all amounts each of which is, if the corporation was a Canadian-controlled private corporation throughout the year or a substantive CCPC at any time in the year,

    • (i) an amount deductible under paragraph 113(1)(a.1) in computing the taxable income of the corporation for the particular taxation year in respect of a dividend received on a share of the capital stock of a foreign affiliate less the amount determined under sub-subclause 113(1)(a.1)(ii)(A)(II)1 in respect of the dividend, and

    • (ii) the total of the amounts deductible under paragraphs 113(1)(b) and (c) in computing the taxable income of the corporation for the particular taxation year in respect of a dividend received on a share of the capital stock of a foreign affiliate if no election was made by the corporation for the particular taxation year under subsection 93.4(3) with respect to that amount (or, if an election was made under subsection 93.4(3), to the extent that the amount was determined under paragraph 93.4(3)(c)) (referred to in this subparagraph as the "low RTF amount") less the amount determined under clause 113(1)(c)(i)(A) in respect of the low RTF amount,

• (2) Paragraph (b) of the description of E in the definition general rate income pool in subsection 89(1) of the Act is replaced by the following:

  • (b) in the case of

    • (i) a Canadian-controlled private corporation,

      • (A) an amount deductible under paragraph 113(1)(a) or (d) or subsection 113(2) in computing the taxable income of the corporation for the particular taxation year in respect of a dividend received on a share of the capital stock of a foreign affiliate less the amount of non-business-income tax (as defined in subsection 126(7)) paid by the corporation to the government of a country other than Canada in respect of the dividend, and

      • (B) if an election was made by the corporation under subsection 93.4(3) for the particular taxation year, the total of the amounts deductible under paragraphs 113(1)(b) and (c) in computing the taxable income of the corporation for the year in respect of a dividend received on a share of the capital stock of a foreign affiliate to the extent that the amount was determined under paragraph 93.4(3)(b) (referred to in this clause as the "high RTF amount") less the amount determined under clause 113(1)(c)(i)(A) in respect of the high RTF amount, and

    • (ii) a deposit insurance corporation,

      • (A) an amount deductible under paragraph 113(1)(a) or (d) or subsection 113(2) in computing the taxable income of the corporation for the particular taxation year in respect of a dividend received on a share of the capital stock of a foreign affiliate less the amount of non-business-income tax (as defined in subsection 126(7)) paid by the corporation to the government of a country other than Canada in respect of the dividend,

      • (B) an amount deductible under paragraph 113(1)(a.1) in computing the taxable income of the corporation for the particular taxation year in respect of a dividend received on a share of the capital stock of a foreign affiliate less the amount determined under sub-subclause 113(1)(a.1)(ii)(A)(II)1 in respect of the dividend, and

      • (C) the total of the amounts deductible under paragraphs 113(1)(b) and (c) in computing the taxable income of the corporation for the particular taxation year in respect of a dividend received on a share of the capital stock of a foreign affiliate less the amount determined under clause 113(1)(c)(i)(A) in respect of the dividend,

• (3) Clause (b)(i)(A) of the description of E in the definition general rate income pool in subsection 89(1) of the Act, as enacted by subsection (2), is replaced by the following:

  • (A) an amount deductible under paragraph 113(1)(a) in computing the taxable income of the corporation for the particular taxation year in respect of a dividend received on a share of the capital stock of a foreign affiliate less the amount of non-business-income tax (as defined in subsection 126(7)) paid by the corporation to the government of a country other than Canada in respect of the dividend, and

• (4) Clause (b)(ii)(A) of the description of E in the definition general rate income pool in subsection 89(1) of the Act, as enacted by subsection (2), is replaced by the following:

  • (A) an amount deductible under paragraph 113(1)(a) in computing the taxable income of the corporation for the particular taxation year in respect of a dividend received on a share of the capital stock of a foreign affiliate less the amount of non-business-income tax (as defined in subsection 126(7)) paid by the corporation to the government of a country other than Canada in respect of the dividend,

• (5) Subsections (1) and (2) apply to taxation years that begin on or after April 7, 2022.

• (6) Subsections (3) and (4) apply to taxation years that begin on or after August 9, 2022.

• 26 (1) Paragraph 93.1(1.1)(a) of the Act is replaced by the following:

  • (a) subsections (2), (5), 20(12) and 39(2.1), sections 90, 93, 93.3, 93.4 (other than subsection 93.4(2)) and 113, paragraphs 128.1(1)(c.3) and (d), section 212.3, subsection 219.1(2) and section 233.4;

• (2) Paragraph 93.1(3)(c) of the Act is replaced by the following:

  • (c) subsections 39(2.1), 40(3.6), 85.1(4.1) and 87(8.31).

• (3) Subsection (1) applies to taxation years that begin after 2025. Subsection (1) also applies to preceding taxation years if an election is filed under subsection 93.4(4) or (5) of the Act.

• (4) Subsection (2) is deemed to have come into force on August 15, 2025.

• 27 (1) The Act is amended by adding the following after section 93.3:

  Marginal note:Definitions

  • 93.4 (1) The following definitions apply in this section.

    FABI surplus

    FABI surplus, of a foreign affiliate (referred to in this definition as the "subject affiliate") of a corporation at any time, means the amount that would be the subject affiliate's taxable surplus (as defined in subsection 5907(1) of the Income Tax Regulations) at that time if

    • (a) the amount included in subparagraph (iii) of the description of A in the definition taxable surplus in subsection 5907(1) of the Income Tax Regulations in respect of the portion of any dividend received by the subject affiliate that is prescribed to be paid out of the taxable surplus of the foreign affiliate that paid the dividend were equal to the lesser of

      • (i) that portion, and

      • (ii) the proportion of the payer affiliate's FABI surplus at the time the dividend was paid that the dividend received is of the whole dividend referred to in paragraph 5900(1)(b) of those Regulations;

    • (b) the amount included in subparagraph (iv) of the description of B in the definition taxable surplus in subsection 5907(1) of the Income Tax Regulations in respect of any whole dividend paid by the subject affiliate were equal to the lesser of

      • (i) the portion of the whole dividend deemed under paragraph 5901(1)(b) of those Regulations to be paid out of the subject affiliate's taxable surplus, and

      • (ii) the subject affiliate's FABI surplus at that time; and

    • (c) the only other amounts taken into consideration in determining the subject affiliate's taxable surplus were amounts that are included in computing

      • (i) the subject affiliate's net earnings (as defined in subsection 5907(1) of the Income Tax Regulations)

        • (A) in respect of foreign accrual property income that can reasonably be considered to be attributable to its foreign accrual business income in respect of which an election has been made under subsection (2), or

        • (B) from an active business carried on by it in a country, and

      • (ii) the subject affiliate's net loss (as defined in subsection 5907(1) of the Income Tax Regulations)

        • (A) in respect of foreign accrual property income that can reasonably be considered to be attributable to its foreign accrual business income, or

        • (B) from an active business carried on by it in a country. (surplus REATE)

    foreign accrual business income

    foreign accrual business income, of a foreign affiliate of a taxpayer, for any taxation year of the affiliate, means the amount that would be its foreign accrual property income for the year if that amount were determined

    • (a) taking into consideration only amounts that

      • (i) would not be included in the computation of the affiliate's aggregate investment income (as defined in subsection 129(4)) if

        • (A) the affiliate were, at all times, a Canadian-controlled private corporation, and

        • (B) all amounts that were included in the computation of the affiliate's foreign accrual property income for the taxation year were from a source in Canada, and

      • (ii) are not derived from an amount paid or payable, directly or indirectly, by a person or partnership (in this definition referred to as the "payer") to the affiliate or to a partnership of which the affiliate was a member where

        • (A) the payer is

          • (I) a Canadian-controlled private corporation or a substantive CCPC,

          • (II) a corporation carrying on a personal services business,

          • (III) an individual resident in Canada,

          • (IV) a foreign affiliate (in this definition referred to as the "payer affiliate") of

            1 any taxpayer of whom the affiliate is a foreign affiliate, or

            2 another taxpayer who does not deal at arm's length with the affiliate or any taxpayer of whom the affiliate is a foreign affiliate, or

          • (V) a partnership, if any person that is a member of the partnership, directly or indirectly through one or more partnerships, is described in any of subclauses (I) to (IV) (each of which is referred to in this definition as a "relevant member"),

        • (B) if the payer – or where subclause (A)(V) applies, a relevant member – is a person described in any of subclauses (A)(I) to (IV), the payer or relevant member

          • (I) is a taxpayer of whom the affiliate is a foreign affiliate, or

          • (II) does not deal at arm's length with

            1 the affiliate, or

            2 any taxpayer of whom the affiliate is a foreign affiliate, and

        • (C) the amount paid or payable

          • (I) if the payer or a relevant member is a person described in subclause (A)(I), is deductible in computing the aggregate investment income or reduces the tax otherwise payable under section 123.3 for a taxation year of the payer or the relevant member, as the case may be,

          • (II) if the payer or a relevant member is a person described in subclause (A)(II) or (III), is deductible in computing the income for a taxation year of the payer or the relevant member, as the case may be, and

          • (III) if the payer or a relevant member is a person described in subclause (A)(IV), is deductible in computing the foreign accrual property income, other than foreign accrual business income, for a taxation year of the payer affiliate or the relevant member, as the case may be; and

    • (b) on the basis that

      • (i) sections 5903 and 5903.1 of the Income Tax Regulations were applied, in the manner set out in subparagraph (ii), taking into account only amounts described in paragraph (a), and

      • (ii) the total of the prescribed amounts for the year under subsections 5903(1) and 5903.1(1) of the Income Tax Regulations were the lesser of

        • (A) the affiliate's foreign accrual property income for the year determined taking into account only amounts described under paragraph (a) and without regard to any amount determined for F and F.1 in the formula in the definition foreign accrual property income in subsection 95(1) for the year, and

        • (B) the total of the maximum amounts permitted to be designated under subsections 5903(1) and 5903.1(1) of the Income Tax Regulations for the year. (revenu étranger accumulé, tiré d'une entreprise)

    underlying FABI surplus tax

    underlying FABI surplus tax, of a foreign affiliate of a corporation in respect of the corporation, at any time, means the portion of the underlying foreign tax (as defined in subsection 5907(1) of the Income Tax Regulations) of the affiliate in respect of the corporation at that time that can reasonably be regarded as applicable in respect of the affiliate's FABI surplus. (montant intrinsèque d'impôt REATE)

  • Marginal note:Amounts deductible under subsection 91(4)

    (2) If a taxpayer is a Canadian-controlled private corporation or a substantive CCPC at any time in a taxation year, or is a partnership all the members of which (other than non-resident persons) are corporations in the year, and the taxpayer files an election in prescribed form and manner by the taxpayer's filing-due date for the year (or, if the taxpayer is a partnership, on or before the day on which a return is required by section 229 of the Income Tax Regulations to be filed in respect of the year or would be required to so be filed if that section applied to the partnership) for the purpose of determining the amount deductible by the taxpayer in computing its income for the year under subsection 91(4) in respect of an income amount (within the meaning of that subsection) in respect of a share of the capital stock of a controlled foreign affiliate of the taxpayer,

    • (a) the amount deductible under subsection 91(4) in respect of the portion of the income amount that may reasonably be regarded as attributable to the foreign accrual business income of any controlled foreign affiliate (in this subsection referred to as the "FABI amount") is to be determined separately from the amount deductible under subsection 91(4) in respect of the portion of the income amount other than the FABI amount (in this subsection referred to as the "excess amount"); and

    • (b) in determining each of the amounts referred to in paragraph (a),

      • (i) the amount deductible under subsection 91(4) in respect of the FABI amount is to be determined as though

        • (A) the references in subsection 91(4) to the "income amount" were references to the "FABI amount", and

        • (B) paragraph (a) of the definition relevant tax factor in subsection 95(1) were read without the references to "(other than a Canadian-controlled private corporation or a corporation that is a substantive CCPC at any time in the year)", and

      • (ii) the amount deductible under subsection 91(4) in respect of the excess amount is to be determined as though the references in subsection 91(4) to the "income amount" were references to the "excess amount".

  • Marginal note:Dividends from foreign affiliates

    (3) If, at any particular time in a taxation year, a corporation that is a Canadian-controlled private corporation or a substantive CCPC at any time in the year (referred to in this subsection as the "recipient corporation") receives a dividend on a share owned by it of the capital stock of a foreign affiliate of the recipient corporation, any portion of the dividend is prescribed to be paid out of taxable surplus of the affiliate (referred to in this subsection as the "taxable surplus dividend") and an election is made by the recipient corporation in prescribed form and manner by its filing-due date for the taxation year, paragraphs 113(1)(b) and (c) and any regulations made for the purposes of those provisions are to be applied to the taxable surplus dividend as follows:

    • (a) the portion of the taxable surplus dividend that is considered to be paid out of the affiliate's FABI surplus (referred to in this subsection as the "FABI surplus dividend") is equal to the lesser of

      • (i) the taxable surplus dividend, and

      • (ii) the proportion of the foreign affiliate's FABI surplus at the time of the dividend payment that the dividend is of the whole dividend referred to in subparagraph 5900(1)(b)(ii) of the Income Tax Regulations;

    • (b) the amounts deductible by the recipient corporation under paragraphs 113(1)(b) and (c) in respect of the FABI surplus dividend are determined as though

      • (i) each reference to "such portion of the dividend as is prescribed to have been paid out of taxable surplus" in subparagraph 113(1)(b)(i), clause 113(1)(c)(i)(A) and subparagraph 113(1)(c)(ii) and the reference to "that portion of the dividend" in subparagraph 113(1)(b)(ii) were a reference to "the FABI surplus dividend",

      • (ii) the reference to the "foreign tax prescribed to be applicable" in paragraph 113(1)(b) were a reference to the amount that would be the underlying foreign tax applicable (as defined in subsection 5907(1) of the Income Tax Regulations) in respect of the recipient corporation to the whole dividend if that amount consisted solely of the affiliate's underlying FABI surplus tax at the particular time in respect of the recipient corporation, and

      • (iii) the definition relevant tax factor in subsection 95(1) were read without reference to the words "(other than a Canadian-controlled private corporation or a corporation that is a substantive CCPC at any time in the year)"; and

    • (c) the amounts deductible under paragraphs 113(1)(b) and (c) in respect of the portion of the taxable surplus dividend other than the FABI surplus dividend are determined as though

      • (i) each reference to "such portion of the dividend as is prescribed to have been paid out of taxable surplus" in subparagraph 113(1)(b)(i), clause 113(1)(c)(i)(A) and subparagraph 113(1)(c)(ii) and the reference to "that portion of the dividend" in subparagraph 113(1)(b)(ii) refer to the portion of the taxable surplus dividend other than the FABI surplus dividend, and

      • (ii) the reference to "the foreign tax prescribed to be applicable to such portion of the dividend" in subparagraph 113(1)(b)(i) refers to the foreign affiliate's underlying foreign tax applicable (as defined in subsection 5907(1) of the Income Tax Regulations) determined without regard to the affiliate's underlying FABI surplus tax.

  • Marginal note:Pre-2023 taxation years

    (4) An election is deemed to have been timely made by a taxpayer under subsection (2) for each of its taxation years that begin before April 7, 2022, if

    • (a) an election is made by the taxpayer in prescribed form and manner on or before the filing-due date for the taxpayer's first taxation year that begins after 2025, or

    • (b) where the taxpayer is a partnership, an election is made, by or on behalf of the partnership, in prescribed form and manner on or before the day on which a return is required by section 229 of the Income Tax Regulations to be filed in respect of the first fiscal period that begins after 2025 or would be required to be filed if that section applied to the partnership.

  • Marginal note:Pre-2026 taxation years

    (5) An election is deemed to have been timely made by a taxpayer under subsection (2), and under subsection (3) as applicable, for each of its taxation years that begin after April 6, 2022 and before 2026, if

    • (a) an election is made by the taxpayer in prescribed form and manner on or before the filing-due date for the taxpayer's first taxation year that begins after 2025, or

    • (b) where the taxpayer is a partnership, an election is made, by or on behalf of the partnership, in prescribed form and manner on or before the day on which a return is required by section 229 of the Income Tax Regulations to be filed in respect of the first fiscal period that begins after 2025 or would be required to be filed if that section applied to the partnership.

  • Marginal note:Tax-free surplus balance computation

    (6) If a taxpayer has made an election under this section in respect of any taxation year, the tax-free surplus balance (as defined in subsection 5905(5.5) of the Income Tax Regulations) of a foreign affiliate of the taxpayer (or, if the taxpayer is a partnership, a foreign affiliate of a member of the partnership) at any time in the taxation year and any subsequent taxation year is to be determined as if subparagraph 5905(5.5)(b)(i) of the Income Tax Regulations were read as follows:

    • (i) the amount, if any, determined by the formula

      A + B

      where

      A

      is the lesser of

      • (A) the amount, if any, determined by the formula

        C × D

        where

        C

        is the affiliate's underlying FABI surplus tax (as defined in subsection 93.4(1) of the Act) in respect of the corporation at that time, and

        D

        is the amount by which the amount that would be the corporation's relevant tax factor (as defined in subsection 95(1) of the Act) for the corporation's taxation year that includes that time if it were determined under paragraph (a) of that definition, exceeds one, and

      • (B) the affiliate's FABI surplus (as defined in subsection 93.4(1) of the Act) in respect of the corporation at that time, and

      B

      is the lesser of

      • (A) the amount, if any, determined by the formula

        E × F

        where

        E

        is the affiliate's underlying foreign tax other than its underlying FABI surplus tax (as defined in subsection 93.4(1) of the Act) in respect of the corporation at that time, and

        F

        is the amount by which the corporation's relevant tax factor (as defined in subsection 95(1) of the Act) for the corporation's taxation year that includes that time, exceeds one, and

      • (B) the affiliate's taxable surplus other than its FABI surplus (as defined in subsection 93.4(1) of the Act) in respect of the corporation at that time, and

• (2) Subsection (1) applies to taxation years that begin after 2025. Subsection (1) also applies to preceding taxation years if an election is filed under subsection 93.4(4) or (5) of the Act.

• 28 (1) Subparagraph 94.2(2)(a)(i) of the Act is replaced by the following:

  • (i) that is controlled by each of the beneficiary and the particular person, unless the condition in paragraph (1)(b) is met only because the condition in subparagraph (1)(b)(i) is met in respect of one or more classes of fixed interests that are tracking interests (within the meaning assigned by subsection 95(8)) in respect of the trust, and

• (2) Section 94.2 of the Act is amended by adding the following after subsection (4):

  • Marginal note:Tracking interests

    (5) If the condition in subparagraph (1)(b)(i) is met at any time in a taxation year in respect of a particular class of fixed interests of a trust that are tracking interests (within the meaning assigned by subsection 95(8)) in respect of the trust, and subsection 95(11) would apply in the absence of subsection 95(13) in respect of the trust for the taxation year,

    • (a) despite subsection 95(13), subsection 95(11) applies in respect of the trust for the year;

    • (b) the separate corporation described in subsection 95(11) in respect of those tracking interests is deemed to be controlled by each of the beneficiary and the particular person referred to in subsection (1) in respect of the trust at that time; and

    • (c) subsection (3) applies to that separate corporation, with such modifications as the context requires, as if that separate corporation were a trust referred to in paragraph (2)(a), for the purpose of determining the amount to be included under subsection 91(1) by the beneficiary or particular person in respect of shares of the capital stock of the separate corporation for the year.

• (3) Subsections (1) and (2) apply to taxation years of trusts that begin after February 26, 2018.

• 29 (1) Paragraph (b) of the description of A in the definition foreign accrual property income in subsection 95(1) of the Act is replaced by the following:

  • (b) a dividend from another foreign affiliate of the taxpayer,

    • (i) if that other affiliate is resident in the same country as the affiliate, or

    • (ii) to the extent that the amount of the dividend exceeds the amount that would be the deduction/non-inclusion mismatch arising from the dividend under paragraph 18.4(7)(c) if

      • (A) subsection 18.4(6) were read without reference to its paragraph (a) and subparagraph (i) of the description of D in its paragraph (b), and

      • (B) the amount determined for C in the definition foreign ordinary income in subsection 18.4(1) were deemed to be nil,

• (2) Paragraph (a) of the description of H in the definition foreign accrual property income in subsection 95(1) of the Act is replaced by the following:

  • (a) if the affiliate was a member of a partnership at the end of the fiscal period of the partnership that ended in the year and the partnership received a dividend at a particular time in that fiscal period from a corporation (in this paragraph referred to as the "payer affiliate") that would be, if the reference in subsection 93.1(1) to "corporation resident in Canada" were a reference to "taxpayer resident in Canada", a foreign affiliate of the taxpayer for the purposes of sections 93 and 113 at that particular time, the amount by which the portion of the dividend that is included in the value determined for A in respect of the affiliate for the year and that would be, if the reference in subsection 93.1(2) to "corporation resident in Canada" were a reference to "taxpayer resident in Canada", deemed by paragraph 93.1(2)(a) to have been received by the affiliate for the purposes of sections 93 and 113 exceeds

    • (i) if the affiliate and the payer affiliate are resident in the same country, nil, and

    • (ii) in any other case, the amount that would be the deduction/non-inclusion mismatch arising from that portion of the dividend under paragraph 18.4(7)(c), if

      • (A) subsection 18.4(6) were read without reference to its paragraph (a) and subparagraph (i) of the description of D in its paragraph (b), and

      • (B) the amount determined for C in the definition foreign ordinary income in subsection 18.4(1) were deemed to be nil, and

• (3) The portion of paragraph (a) of the definition relevant tax factor in subsection 95(1) of the Act before the formula is replaced by the following:

  • (a) in the case of a corporation (other than a Canadian-controlled private corporation or a corporation that is a substantive CCPC at any time in the year), or of a partnership all the members of which, other than non-resident persons, are corporations (other than Canadian-controlled private corporations or corporations that are substantive CCPCs at any time in the year), the quotient obtained by the formula

• (4) Subparagraph 95(2)(d.1)(ii) of the Act is amended by striking out "and" at the end of clause (B) and by adding the following after clause (C):

  • (D) subsections 85.1(4) and 87(8.3) in respect of a disposition of property to the new foreign corporation, and

• (5) Clause 95(2)(e)(v)(A) of the Act is amended by striking out "and" at the end of subclause (II) and by adding the following after subclause (III):

  • (IV) subsections 85.1(4) and 87(8.3) in respect of a disposition of property to the shareholder affiliate, and

• (6) The portion of subsection 95(11) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Tracking class — separate corporation

    (11) If this subsection applies in respect of a foreign affiliate (referred to in this subsection as the "actual affiliate"), other than a controlled foreign affiliate, of a taxpayer for a taxation year of the actual affiliate, the following rules apply for the purpose of determining the amounts, if any, to be included under subsection 91(1), and to be deducted under subsection 91(4), by the taxpayer in respect of the year and for the purpose of applying section 233.4 in respect of the year:

• (7) Section 95 of the Act is amended by adding the following after subsection (12):

  • Marginal note:Exception — no avoidance purpose

    (13) Subsections (11) and (12) apply in respect of a foreign affiliate of a taxpayer for a taxation year only if it can reasonably be considered that one of the purposes for the creation or issuance, or for the acquisition or holding, of a tracking interest in respect of the affiliate that is acquired or held by the taxpayer or another foreign affiliate of the taxpayer is to avoid, prevent or defer the inclusion of any amount in the income of the taxpayer under subsection 91(1).

• (8) Subsections (1) and (2) apply in respect of any dividend received on or after July 1, 2024.

• (9) Subsection (3) applies to taxation years that begin on or after April 7, 2022.

• (10) Subsections (4) and (5) apply in respect of dispositions that occur on or after August 15, 2025.

• (11) Subsections (6) and (7) apply to taxation years of a foreign affiliate of a taxpayer that begin after February 26, 2018.

• 30 (1) Subparagraph 96(2.1)(b)(ii) of the Act is replaced by the following:

  • (ii) the amount required by subsection 127(8), 127.44(11), 127.45(8), 127.48(12), 127.49(8) or 127.491(12) in respect of the partnership to be added in computing the investment tax credit, the CCUS tax credit (as defined in subsection 127.44(1)), the clean technology investment tax credit (as defined in subsection 127.45(1)), the clean hydrogen tax credit (as defined in subsection 127.48(1)), the CTM investment tax credit (as defined in subsection 127.49(1)) or the clean electricity investment tax credit (as defined in subsection 127.491(1)) of the taxpayer for the taxation year,

• (2) The portion of subsection 96(2.2) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:At-risk amount

    (2.2) For the purposes of this section and sections 111, 127, 127.44, 127.45, 127.47, 127.48, 127.49 and 127.491, the at-risk amount of a taxpayer, in respect of a partnership of which the taxpayer is a limited partner, at any particular time is the amount, if any, by which the total of

• (3) The portion of subsection 96(2.4) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Limited partner

    (2.4) For the purposes of this section and sections 111, 127, 127.44, 127.45, 127.47, 127.48, 127.49 and 127.491, a taxpayer who is a member of a partnership at a particular time is a limited partner of the partnership at that time if the member's partnership interest is not an exempt interest (within the meaning assigned by subsection (2.5)) at that time and if, at that time or within three years after that time,

• (4) Subsections (1) to (3) are deemed to have come into force on April 16, 2024.

• 31 (1) Subsection 104(1) of the Act is replaced by the following:

  Marginal note:Reference to trust or estate

  • 104 (1) In this Act, a reference to a trust or estate (in this Subdivision referred to as a "trust") shall, unless the context otherwise requires, be read to include a reference to the trustee, executor, administrator, liquidator of a succession, heir or other legal representative having ownership or control of the trust property, but, except for the purposes of this subsection, subsection (1.1), subparagraph (b)(v) of the definition disposition in subsection 248(1) and paragraph (k) of that definition, a trust is deemed not to include an arrangement under which the trust can reasonably be considered to act as agent for all the beneficiaries under the trust with respect to all dealings with all of the trust's property unless the trust is described in any of paragraphs (a) to (e.1) of the definition trust in subsection 108(1).

• (2) The portion of subsection 104(21.21) of the Act before the formula is replaced by the following:

  • Marginal note:Beneficiaries QFFP taxable capital gain — 2024

    (21.21) If clause (21.2)(b)(ii)(A) applies to deem, for the purposes of section 110.6, the beneficiary under a trust to have a taxable capital gain (referred to in this subsection as the "QFFP taxable capital gain") from a disposition of capital property that is qualified farm or fishing property of the beneficiary, for the beneficiary's taxation year that ends on or after June 25, 2024 and before 2025, and in which the designation year of the trust ends, for the purposes of subsection 110.6(2.2), the beneficiary is, if the trust complies with the requirements of subsection (21.22), deemed to have a taxable capital gain from the disposition of qualified farm or fishing property of the beneficiary on or after June 25, 2024, equal to the amount determined by the formula

• (3) The descriptions of B and C in subsection 104(21.21) of the Act are replaced by the following:

  B

  is, if the designation year of the trust ends on or after June 25, 2024 and before 2025, the amount that would be determined in respect of the trust for the designation year under paragraph 3(b) in respect of capital gains and capital losses if the only properties referred to in that paragraph were qualified farm or fishing properties of the trust that were disposed of by the trust on or after June 25, 2024 and before 2025; and

  C

  is, if the designation year of the trust ends on or after June 25, 2024 and before 2025, the amount that would be determined in respect of the trust for the designation year under paragraph 3(b) in respect of capital gains and capital losses if the only properties referred to in that paragraph were qualified farm or fishing properties.

• (4) Subsection 104(21.22) of the Act is replaced by the following:

  • Marginal note:Trusts to designate amounts — 2024

    (21.22) A trust shall determine and designate, in its return of income under this Part for a designation year of the trust, the amount that is determined under subsection (21.21) to be the beneficiary's taxable capital gain from the disposition on or after June 25, 2024 and before 2025 of qualified farm or fishing property of the beneficiary.

  • Marginal note:Beneficiaries QSBC taxable capital gain — 2024

    (21.23) If clause (21.2)(b)(ii)(B) applies to deem, for the purposes of section 110.6, the beneficiary under a trust to have a taxable capital gain (referred to in this subsection as the "QSBC taxable capital gain") from a disposition of capital property that is a qualified small business corporation share of the beneficiary, for the beneficiary's taxation year that ends on or after June 25, 2024 and before 2025, and in which the designation year of the trust ends, for the purposes of subsection 110.6(2.2), the beneficiary is, if the trust complies with the requirements of subsection (21.24), deemed to have a taxable capital gain from the disposition of a qualified small business corporation share of the beneficiary on or after June 25, 2024 and before 2025, equal to the amount determined by the formula

    A × B/C

    where

    A

    is the amount of the QSBC taxable capital gain;

    B

    is, if the designation year of the trust ends on or after June 25, 2024 and before 2025, the amount that would be determined in respect of the trust for the designation year under paragraph 3(b) in respect of capital gains and capital losses if the only properties referred to in that paragraph were qualified small business corporation shares of the trust (to the extent that the amount is not included in computing the amount designated under subsection (21.21)) that were disposed of by the trust on or after June 25, 2024 and before 2025; and

    C

    is, if the designation year of the trust ends on or after June 25, 2024 and before 2025, the amount that would be determined in respect of the trust for the designation year under paragraph 3(b) in respect of capital gains and capital losses if the only properties referred to in that paragraph were qualified small business corporation shares (to the extent that the amount is not included in computing the amount designated under subsection (21.21)).

  • Marginal note:Trusts to designate amounts — 2024

    (21.24) A trust shall determine and designate, in its return of income under this Part for a designation year of the trust, the amount that is determined under subsection (21.23) to be the beneficiary's taxable capital gain from the disposition on or after June 25, 2024 and before 2025 of a qualified small business corporation share (to the extent that the amount is not included in computing the amount designated under subsection (21.21)) of the beneficiary.

• (5) Subsection (1) applies to taxation years that end after December 30, 2024.

• (6) Subsections (2) to (4) apply to taxation years that begin after 2023.

• 32 (1) Paragraph 107.4(2)(b) of the Act is replaced by the following:

  • (b) where a trust (in this paragraph referred to as the "transferor") governed by an arrangement that is a FHSA, a registered retirement savings plan or a registered retirement income fund transfers a property to a trust (in this paragraph referred to as the "transferee") governed by such an arrangement, the transfer is deemed not to result in a change in the beneficial ownership of the property if the annuitant or holder of the arrangement that governs the transferor is also the annuitant or holder of the arrangement that governs the transferee.

• (2) Subsection (1) is deemed to have come into force on April 1, 2023.

• 33 (1) The portion of clause 110(1)(d)(i)(B) of the Act before subclause (I) is replaced by the following:

  • (B) in the case of a benefit deemed by paragraph 7(1)(e) to have been received by the taxpayer, within the first three taxation years of the graduated rate estate of the taxpayer, by

• (2) Subsection (1) applies to taxation years of individuals who died on or after August 12, 2024.

34 Section 110.1 of the Act is amended by adding the following after subsection (17):

• Marginal note:2024 — extension of time

  (18) For the purposes of applying this section, a gift made by a taxpayer before March 2025 and after the end of a taxation year of the taxpayer that ended after November 14, 2024 and before 2025 (referred to in this subsection as the "donation year") is deemed to have been made by the taxpayer in the donation year and not in the taxpayer's 2025 taxation year if

  • (a) the gift would be deductible under this section in computing the taxpayer's taxable income under this Part for the donation year if it were made immediately before the end of that year;

  • (b) the taxpayer deducts the amount of the gift under this section for the taxpayer's donation year; and

  • (c) the gift was in the form of cash or was transferred by way of cheque, credit card, money order or electronic payment.

• 35 (1) Paragraph (a) of the description of A in the definition annual gains limit in subsection 110.6(1) of the Act is replaced by the following:

  • (a) the amount determined in respect of the individual for the year under paragraph 3(b) in respect of capital gains and capital losses (except any portion related to a deduction claimed by the individual in the year under subsection 110.61(2) or 110.62(2)), and

• (2) Subparagraph (a)(ii) of the description of B in the definition annual gains limit in subsection 110.6(1) of the Act is replaced by the following:

  • (ii) the amount, if any, by which the amount determined in respect of the individual for the year under paragraph 3(b) in respect of capital gains and capital losses (except any portion related to a deduction claimed by the individual in the year under subsection 110.61(2) or 110.62(2)) exceeds the amount determined for A in respect of the individual for the year, and

• (3) Paragraph (b) of the description of B in the definition annual gains limit in subsection 110.6(1) of the Act is replaced by the following:

  • (b) all of the individual's allowable business investment losses for the year (except any portion that reduced the amount otherwise deductible by the individual in the year under subsection 110.61(2) or 110.62(2)); (plafond annuel des gains)

• (4) Paragraph (a) of the definition cumulative net investment loss in subsection 110.6(1) of the Act is replaced by the following:

  • (a) the total of all amounts each of which is the investment expense of the individual for the year or a preceding taxation year ending after 1987 (except any portions included in subparagraph (ii) of the description of H in paragraph 110.61(2)(b) and subparagraph (ii) of the description of H in paragraph 110.62(2)(b) to the extent they reduced the amount otherwise deductible by the individual under each of subsections 110.61(2) and 110.62(2))

• (5) The first formula in paragraph 110.6(2)(a) of the Act is replaced by the following:

  [$625,000 − (A + B + C + D)] × E

• (6) Subsection 110.6(2.2) of the Act is replaced by the following:

  • Marginal note:Additional deduction — 2024

    (2.2) In computing the taxable income of an individual (other than a trust) for the individual's taxation year that includes June 25, 2024 (referred to in this subsection as the "transition year"), there may be deducted, where that individual was resident in Canada throughout the transition year and that individual disposed of in the transition year, and on or after June 25, 2024, a qualified small business corporation share of the individual or a qualified farm or fishing property of the individual, such amount as the individual may claim not exceeding the least of

    • (a) $116,582,

    • (b) the amount, if any, by which the individual's cumulative gains limit at the end of the transition year exceeds the total of all amounts each of which is an amount deducted by the individual under subsection (2) or (2.1) in computing the individual's taxable income for the transition year,

    • (c) the amount, if any, by which the individual's annual gains limit for the transition year exceeds the total of all amounts each of which is an amount deducted by the individual under subsection (2) or (2.1) in computing the individual's taxable income for the transition year, and

    • (d) the amount that would be determined in respect of the individual for the transition year under paragraph 3(b) in respect of capital gains and capital losses if the only properties referred to in that paragraph were qualified small business corporation shares of the individual and qualified farm or fishing properties of the individual, disposed of by the individual on or after June 25, 2024.

• (7) Section 110.6 of the Act is amended by adding the following after subsection (31):

  • Marginal note:Application of subsection (33) — 2025

    (32) Subsection (33) applies to an individual for the 2025 taxation year, if

    • (a) in the taxation year the individual has a taxable capital gain from the disposition, before June 25, 2024, by a partnership with a fiscal period that begins before June 25, 2024 and ends after 2024 or a trust with a taxation year that begins before June 25, 2024 and ends after 2024, of a qualified small business corporation share of the individual or a qualified farm or fishing property of the individual; and

    • (b) the total of all amounts each of which is an amount of a taxable capital gain of the individual described in paragraph (a) exceeds the amount that would be determined under paragraph (2)(a) in respect of the individual for the taxation year if the reference to "$625,000" in that paragraph read as "$522,145" (the amount of which excess is referred to in subsection (33) as the "denied excess").

  • Marginal note:Deduction denied — 2025

    (33) Despite subsections (2) to (2.2), if this subsection applies to an individual for a taxation year, no amount may be deducted under this section for the taxation year by the individual in respect of the individual's taxable capital gains for the year described in paragraph (32)(a) to the extent of the denied excess.

• (8) Subsections (1) to (4) apply in respect of dispositions that occur on or after August 12, 2024.

• (9) Subsection (5) applies to taxation years that begin after 2024.

• (10) Subsections (6) and (7) apply to taxation years that begin after 2023.

• 36 (1) Paragraph 110.61(1)(a) of the Act is replaced by the following:

  • (a) no individual has prior to the disposition time sought a deduction under this section or section 110.62 in respect of a disposition of shares that, at the time of that disposition, derived their value directly or indirectly, from an active business that is also relevant to the determination of whether the disposition of the subject shares satisfies the condition set out in paragraph (a) of the definition qualifying business transfer in subsection 248(1);

• (2) Subparagraphs 110.61(1)(b)(i) and (ii) of the Act are replaced by the following:

  • (i) the subject shares were not owned by anyone other than the individual or a person or partnership related to the individual, except that if, at any time in the 24-month period immediately preceding the disposition time, the subject shares were substituted for other shares (in this paragraph referred to as the "substituted shares"), the subject shares shall be considered to have met the requirements of this subparagraph only where the substituted shares were not owned by any person or partnership other than a person or partnership described in this subparagraph throughout the period beginning 24 months before the disposition time and ending at the time of substitution, and

  • (ii) more than 50% of the fair market value of the subject shares and the substituted shares, if any, was derived, directly or indirectly, from assets which were used principally in an active business;

• (3) Subparagraph 110.61(1)(d)(ii) of the Act is replaced by the following:

  • (ii) throughout any 24-month period ending before the disposition time, the individual, or a spouse or common-law partner of the individual, was actively engaged on a regular, continuous and substantial basis (including within the meaning of paragraph 120.4(1.1)(a)) in the activities of the business that is relevant to the determination of whether the subject shares satisfy the condition set out in paragraph (a) of the definition qualifying business transfer in subsection 248(1), and

• (4) Paragraphs 110.61(2)(a) and (b) of the Act are replaced by the following:

  • (a) the amount determined by the formula

    A × B × C − D

    where

    A

    is the elected amount (within the meaning of clause (1)(e)(ii)(A)) included in the joint election referred to in paragraph (1)(e),

    B

    is

    • (i) 1, if only one individual is entitled to a deduction under this subsection in respect of the qualifying business transfer,

    • (ii) the percentage assigned to the individual in the joint election referred to in paragraph (1)(e), if a percentage is assigned to the individual in accordance with clause (1)(e)(ii)(B), and

    • (iii) in any other case, nil,

    C

    is the fraction of the taxpayer's capital gain from the disposition of the subject shares that is a taxable capital gain under paragraph 38(a) that applies to the subject shares in the year, and

    D

    is the total of each amount claimed by the taxpayer under this subsection in a prior taxation year in respect of the disposition of the subject shares multiplied by the amount determined by the formula

    E ÷ F

    where

    E

    is the fraction of a capital gain that is a taxable capital gain under paragraph 38(a) in the current year, and

    F

    is the fraction of a capital gain that is a taxable capital gain under paragraph 38(a) in the prior year in respect of the disposition of the subject shares; and

  • (b) the amount determined by the formula

    G − H

    where

    G

    is the lesser of

    • (i) the amount determined in respect of the individual for the year under paragraph 3(b) in respect of capital gains and losses (except any portion related to a deduction previously claimed by the individual in the year under this subsection), and

    • (ii) the amount that would be determined in respect of the individual for the year under paragraph 3(b) in respect of capital gains and losses if the only properties referred to in that paragraph were the subject shares, and

    H

    is the total of

    • (i) the individual's allowable business investment losses for the year (except any portion that previously reduced the amount otherwise deductible by the individual in the year under this subsection),

    • (ii) the amount, if any, by which the individual's investment expense for the year exceeds the individual's investment income for the year (except any portion of the excess that previously reduced the amount otherwise deductible by the individual in the year under this subsection), and for the purposes of this subparagraph,

      • (A) investment expense of an individual for a year, has the same meaning as in subsection 110.6(1), except that the reference to "amount determined in respect of the individual for the year under paragraph (a) of the description of B in the definition annual gains limit" in paragraph (f) of that definition is to be read as "total of all amounts determined in respect of the individual for the year under subparagraph (iii) of the description of H in subsection 110.61(2) (to the extent that amount reduces the amount otherwise deductible under that subsection)", and

      • (B) investment income of an individual for a year, has the same meaning as in subsection 110.6(1), except that the reference to "amount determined in respect of the individual for the year for A in the definition annual gains limit" in paragraph (f) of that definition is to be read as "total of all amounts determined in respect of the individual for the year for the description of G in subsection 110.61(2) (except any amount that previously reduced the amount otherwise deductible by the individual in the year under subsection 110.61(2))", and

    • (iii) the amount, if any, by which

      • (A) the individual's net capital losses for other taxation years deducted under paragraph 111(1)(b) in computing the individual's taxable income for the year

    exceeds

    • (B) the amount, if any, by which the amount determined in respect of the individual for the year under paragraph 3(b) in respect of capital gains and capital losses (except any portion related to a deduction previously claimed by the individual in respect of other subject shares under this subsection) exceeds the amount determined for G.

• (5) Section 110.61 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Order of application

    (2.1) If an individual claims more than one deduction under subsection (2) in a taxation year, the individual is to designate the order in which the deductions are claimed, and if the individual does not designate an order, the Minister may designate the order.

• (6) Paragraph 110.61(3)(b) of the Act is replaced by the following:

  • (b) the time that is the beginning of the taxation year of a qualifying business of the trust in which less than 50% of the fair market value of the shares of the qualifying business is derived, directly or indirectly, from assets used principally in an active business carried on by one or more qualifying businesses controlled by the trust at both that time and at the beginning of the preceding taxation year of the qualifying business (unless the active business has ceased to be carried on at that time due to the disposition of all the assets that were used to carry on the business in order to satisfy debts owed to creditors of the trust or of the qualifying business).

• (7) Paragraph 110.61(4)(b) of the Act is replaced by the following:

  • (b) within eight years of the day that is 24 months after the disposition time for the qualifying business transfer, in computing the income of the trust that participated in the qualifying business transfer, the trust is deemed to have a gain equal to the elected amount (within the meaning of clause (1)(e)(ii)(A)) included in the joint election referred to in paragraph (1)(e), for the year in which the disqualifying event occurs, from the disposition of a capital property.

• (8) Subsection 110.61(11) of the Act is amended by adding the following after paragraph (b):

  • (b.1) a spouse or common-law partner of a particular individual includes another individual who was a spouse or common-law partner of the particular individual immediately before the death of the other individual;

• (9) Subsections (1) to (3) and (6) to (8) are deemed to have come into force on January 1, 2024.

• (10) Subsections (4) and (5) are deemed to have come into force on August 12, 2024.

• 37 (1) The Act is amended by adding the following after section 110.61:

  Marginal note:Deduction for qualifying cooperative conversion — conditions

  • 110.62 (1) Subsection (2) applies to an individual (other than a trust) if, at the time of a disposition (referred to in this section as the "disposition time") of shares of the capital stock (referred to in this section as the "subject shares") of a corporation (referred to in this section as the "subject corporation") to another corporation (referred to in this section as the "purchaser corporation") that occurred after 2023 and before 2027 under a qualifying cooperative conversion, the following conditions are met:

    • (a) no individual has prior to the disposition time sought a deduction under this section or section 110.61 in respect of a disposition of shares that, at the time of that disposition, derived their value directly or indirectly, from an active business that is also relevant to the determination of whether the disposition of the subject shares satisfies the condition set out in paragraph (a) of the definition qualifying cooperative conversion in subsection 248(1);

    • (b) throughout the 24 months immediately preceding the disposition time,

      • (i) the subject shares were not owned by anyone other than the individual or a person or partnership related to the individual, except that if, at any time in the 24-month period immediately preceding the disposition time, the subject shares were substituted for other shares (in this paragraph referred to as the "substituted shares"), the subject shares shall be considered to have met the requirements of this subparagraph only where the substituted shares were not owned by any person or partnership other than a person or partnership described in this subparagraph throughout the period beginning 24 months before the disposition time and ending at the time of substitution, and

      • (ii) more than 50% of the fair market value of the subject shares and the substituted shares, if any, was derived directly or indirectly from assets which were used principally in an active business;

    • (c) immediately before the disposition time,

      • (i) the subject corporation and each corporation affiliated with the subject corporation in which the subject corporation owns (directly or indirectly) shares is not a professional corporation, and

      • (ii) the purchaser corporation is not established for the purposes of providing employment to its members who are its employees at that time (excluding any officer or director of the purchaser corporation) or the employees of another corporation controlled by the purchaser corporation;

    • (d) at the disposition time,

      • (i) the individual is at least 18 years of age,

      • (ii) throughout any 24-month period ending before the disposition time, the individual, or a spouse or common-law partner of the individual, was actively engaged on a regular, continuous and substantial basis (including within the meaning of paragraph 120.4(1.1)(a)) in the activities of the business that is relevant to the determination of whether the subject shares satisfy the condition set out in paragraph (a) of the definition qualifying cooperative conversion in subsection 248(1), and

      • (iii) the purchaser corporation is a worker cooperative, of which at least 75% of its

        • (A) qualifying cooperative workers described in paragraph (d) of the definition worker cooperative in subsection 248(1) are resident in Canada, and

        • (B) individual employee members described in paragraph (e) of the definition worker cooperative in subsection 248(1) are resident in Canada; and

    • (e) the purchaser corporation, the individual and any other individual entitled to a deduction under subsection (2) in respect of the qualifying cooperative conversion

      • (i) jointly elect, in prescribed form, for the deduction provided under subsection (2) to apply in respect of the disposition of the subject shares,

      • (ii) include the following information in the election:

        • (A) an amount (in this paragraph referred to as the "elected amount") equal to the total amount of capital gains that the parties agree may be eligible for a deduction under subsection (2) with respect to the qualifying cooperative conversion, not exceeding $10,000,000, and

        • (B) if more than one individual is eligible for a deduction in respect of the qualifying cooperative conversion, the percentage of the elected amount that is assigned to each eligible individual (provided that the total percentages assigned to all individuals cannot exceed 100%), and

      • (iii) file the election with the Minister on or before the earlier of the individual's and the worker cooperative's filing-due date for the taxation year that includes the disposition time.

  • Marginal note:Capital gains deduction — qualifying cooperative conversions

    (2) If this subsection applies to an individual, in computing the taxable income for a taxation year of the individual, there may be deducted such amount as the individual may claim not exceeding the least of

    • (a) the amount determined by the formula

      A × B × C − D

      where

      A

      is the elected amount (within the meaning of clause (1)(e)(ii)(A)) included in the joint election referred to in paragraph (1)(e),

      B

      is

      • (i) 1, if only one individual is entitled to a deduction under this subsection in respect of the qualifying cooperative conversion,

      • (ii) the percentage assigned to the individual in the joint election referred to in paragraph (1)(e), if a percentage is assigned to the individual in accordance with clause (1)(e)(ii)(B), and

      • (iii) in any other case, nil,

      C

      is the fraction of the taxpayer's capital gain from the disposition of the subject shares that is a taxable capital gain under paragraph 38(a) that applies to the subject shares in the year, and

      D

      is the total of each amount claimed by the taxpayer under this subsection in a prior taxation year in respect of the disposition of the subject shares multiplied by the amount determined by the formula

      E ÷ F

      where

      E

      is the fraction of a capital gain that is a taxable capital gain under paragraph 38(a) in the current year, and

      F

      is the fraction of a capital gain that is a taxable capital gain under paragraph 38(a) in the prior year in respect of the disposition of the subject shares; and

    • (b) the amount that would be determined in respect of the individual for the year under paragraph 3(b) (to the extent that that amount is not included in computing an amount determined under paragraph 110.6(2)(d) or (2.1)(d) for the individual) in respect of capital gains and capital losses if the only properties referred to in paragraph 3(b) were the subject shares of the individual.

  • Marginal note:Disqualifying event

    (3) For the purposes of this section, a disqualifying event in respect of a qualifying cooperative conversion occurs at the earliest of

    • (a) the time when the worker cooperative that participated in the qualifying cooperative conversion ceases to be a worker cooperative, and

    • (b) the time that is the beginning of the taxation year of the worker cooperative in which less than 50% of the fair market value of the shares of the worker cooperative is derived, directly or indirectly, from assets used principally in an active business carried on by the worker cooperative (or by a qualifying cooperative business controlled by the worker cooperative) at both that time and at the beginning of the preceding taxation year of the worker cooperative (unless the active business has ceased to be carried on at that time due to the disposition of all the assets that were used to carry on the business in order to satisfy debts owed to creditors of the worker cooperative or of the qualifying cooperative business).

  • Marginal note:Consequences of a disqualifying event

    (4) If a disqualifying event in respect of a qualifying cooperative conversion occurs

    • (a) within 24 months after the disposition time for the qualifying cooperative conversion, subsection (2) is deemed to have never applied in respect of the subject shares disposed of under the qualifying cooperative conversion; or

    • (b) within 8 years of the day that is 24 months after the disposition time for the qualifying cooperative conversion, in computing the income of the worker cooperative that participated in the qualifying cooperative conversion, the worker cooperative is deemed to have a gain equal to the elected amount (within the meaning of clause (1)(e)(ii)(A)) included in the joint election referred to in paragraph (1)(e), for the year in which the disqualifying event occurs, from the disposition of a capital property.

  • Marginal note:Anti-avoidance

    (5) Despite any other provision in this section, subsection (2) does not apply in respect of a qualifying cooperative conversion if it is reasonable to consider that one of the purposes of any transaction (as defined in subsection 245(1)), or series of transactions, is to

    • (a) involve the subject corporation (or the purchaser corporation) in the qualifying cooperative conversion to accommodate the direct or indirect acquisition of subject shares (or the acquisition of all or substantially all of the risk of loss and opportunity for gain or profit in respect of the subject shares) by another person or partnership (other than the subject corporation or the purchaser corporation) in a manner that permits an individual to claim a deduction under subsection (2) that would otherwise not be available; or

    • (b) organize or reorganize a subject corporation or any other corporation, partnership or trust in a manner that allows a deduction to be claimed under subsection (2) in respect of more than one qualifying cooperative conversion of a business that is relevant to the determination of whether subject shares satisfied the condition set out in paragraph (a) of the definition qualifying cooperative conversion in subsection 248(1).

  • Marginal note:Failure to report capital gain

    (6) Despite subsection (2), no amount may be deducted under this section in respect of a capital gain of an individual for a particular taxation year in computing the individual's taxable income for the particular taxation year or any subsequent year, if

    • (a) the individual knowingly or under circumstances amounting to gross negligence

      • (i) fails to file the individual's return of income for the particular taxation year within one year after the taxpayer's filing-due date for the particular taxation year, or

      • (ii) fails to report the capital gain in the individual's return of income for the particular taxation year; and

    • (b) the Minister establishes the facts justifying the denial of such an amount under this section.

  • Marginal note:Deduction not permitted

    (7) Despite subsection (2), no amount may be deducted under this section in computing an individual's taxable income for a taxation year in respect of a capital gain of the individual for the taxation year if the capital gain is from a disposition of property which disposition is part of a series of transactions or events

    • (a) that includes a dividend received by a corporation to which dividend subsection 55(2) does not apply but would apply if this Act were read without reference to paragraph 55(3)(b); or

    • (b) in which any property is acquired by a corporation or partnership for consideration that is significantly less than the fair market value of the property at the time of acquisition (other than an acquisition as the result of an amalgamation or merger of corporations or the winding-up of a corporation or partnership or a distribution of property of a trust in satisfaction of all or part of a corporation's capital interest in the trust).

  • Marginal note:Deduction not permitted

    (8) Despite subsection (2), if an individual has a capital gain for a taxation year from the disposition of a property and it can reasonably be concluded, having regard to all the circumstances, that a significant part of the capital gain is attributable to the fact that dividends were not paid on a share (other than a prescribed share within the meaning of subsection 110.6(8)) or that dividends paid on such a share in the taxation year or in any preceding taxation year were less than 90% of the average annual rate of return on that share for that year, no amount in respect of that capital gain shall be deducted under this section in computing the individual's taxable income for the year.

  • Marginal note:Average annual rate of return

    (9) For the purpose of subsection (8), the average annual rate of return on a share (other than a prescribed share within the meaning of subsection 110.6(8)) of a corporation for a taxation year is the annual rate of return by way of dividends that a knowledgeable and prudent investor who purchased the share on the day it was issued would expect to receive in that year, other than the first year after the issue, in respect of the share if

    • (a) there was no delay or postponement of the payment of dividends and no failure to pay dividends in respect of the share;

    • (b) there was no variation from year to year in the amount of dividends payable in respect of the share (other than where the amount of dividends payable is expressed as an invariant percentage of or by reference to an invariant difference between the dividend expressed as a rate of interest and a generally quoted market interest rate); and

    • (c) the proceeds to be received by the investor on the disposition of the share are the same amount the corporation received as consideration on the issue of the share.

  • Marginal note:Deduction not permitted

    (10) If it is reasonable to consider that one of the main reasons for an individual acquiring, holding or having an interest in a partnership or trust (other than an interest in a personal trust) or for the existence of any terms, conditions, rights or other attributes of the interest is to enable the individual to receive or have allocated to the individual a percentage of any capital gain or taxable capital gain of the partnership or trust that is larger than the individual's percentage of the income of the partnership or trust, as the case may be, despite any other provision of this Act, no amount may be deducted under subsection (2) by the individual in respect of any such gain allocated or distributed to the individual.

  • Marginal note:Related persons, etc.

    (11) For the purposes of this section,

    • (a) a taxpayer is deemed to have disposed of shares that are identical properties in the order in which the taxpayer acquired them;

    • (b) a personal trust is deemed

      • (i) to be related to a person or partnership for any period throughout which the person or partnership was a beneficiary of the trust, and

      • (ii) in respect of shares of the capital stock of a corporation, to be related to the person from whom it acquired those shares if, at the time the trust disposed of the shares, all of the beneficiaries (other than registered charities) of the trust were related to that person or would have been so related if that person were living at that time;

    • (c) a spouse or common-law partner of a particular individual includes another individual who was a spouse or common-law partner of the particular individual immediately before the death of the other individual;

    • (d) a partnership is deemed to be related to a person for any period throughout which the person was a member of the partnership;

    • (e) a person who is a member of a partnership that is a member of another partnership is deemed to be a member of the other partnership;

    • (f) if a corporation acquires shares of a class of the capital stock of another corporation from any person, it is deemed in respect of those shares to be related to the person if all or substantially all the consideration received by that person from the corporation in respect of those shares was common shares of the capital stock of the corporation; and

    • (g) shares issued by a corporation to a particular person or partnership are deemed to have been owned immediately before their issue by a person who was not related to the particular person or partnership unless the shares were issued

      • (i) as consideration for other shares,

      • (ii) as part of a transaction or series of transactions in which the person or partnership disposed of property to the corporation that consisted of

        • (A) all or substantially all the assets used in an active business carried on by that person or the members of that partnership, or

        • (B) an interest in a partnership all or substantially all the assets of which were used in an active business carried on by the members of the partnership, or

      • (iii) as payment of a stock dividend.

• (2) Paragraph 110.62(2)(b) of the Act, as enacted by subsection (1), is replaced by the following:

  • (b) the amount determined by the formula

    G − H

    where

    G

    is the lesser of

    • (i) the amount determined in respect of the individual for the year under paragraph 3(b) in respect of capital gains and capital losses (except any portion related to a deduction previously claimed by the individual in the year under this subsection or subsection 110.61(2)), and

    • (ii) the amount that would be determined in respect of the individual for the year under paragraph 3(b) in respect of capital gains and losses if the only properties referred to in that paragraph were the subject shares, and

    H

    is the total of

    • (i) the individual's allowable business investment losses for the year (except any portion that previously reduced the amount otherwise deductible by the individual in the year under this subsection or subsection 110.61(2)),

    • (ii) the amount, if any, by which the individual's investment expense for the year exceeds the individual's investment income for the year (except any portion of the excess that previously reduced the amount otherwise deductible by the individual in the year under this subsection or subsection 110.61(2)), and for the purposes of this subparagraph,

      • (A) investment expense of an individual for a year, has the same meaning as in subsection 110.6(1) except that, the reference to "amount determined in respect of the individual for the year under paragraph (a) of the description of B in the definition annual gains limit" in paragraph (f) of that definition is to be read as "total of all amounts determined in respect of the individual for the year under subparagraph (iii) of the description of H in subsection 110.61(2) and subparagraph (iii) of the description of H in subsection 110.62(2) (to the extent that amount reduces the amount otherwise deductible under that subsection)", and

      • (B) investment income of an individual for a year, has the same meaning as in subsection 110.6(1) except that, the reference to "amount determined in respect of the individual for the year for A in the definition annual gains limit" in paragraph (f) of that definition is to be read as "total of all amounts determined in respect of the individual for the year for the description of G in subsection 110.61(2) and the description of G in subsection 110.62(2) (except any amount that previously reduced the amount otherwise deductible by the individual in the year under subsection 110.61(2) or 110.62(2))", and

    • (iii) the amount, if any, by which

      • (A) the individual's net capital losses for other taxation years deducted under paragraph 111(1)(b) in computing the individual's taxable income for the year

    exceeds

    • (B) the amount, if any, by which the amount determined in respect of the individual for the year under paragraph 3(b) in respect of capital gains and capital losses (except any portion related to a deduction previously claimed by the individual in respect of other subject shares under this subsection or subsection 110.61(2)) exceeds the amount determined for G.

• (3) Section 110.62 of the Act, as enacted by subsection (1), is amended by adding the following after subsection (2):

  • Marginal note:Order of Application

    (2.1) If an individual claims more than one deduction under subsection (2) in a taxation year, the individual is to designate the order in which the deductions are claimed, and if the individual does not designate an order, the Minister may designate the order.

• (4) Subsection (1) is deemed to have come into force on January 1, 2024.

• (5) Subsections (2) and (3) are deemed to have come into force on August 12, 2024.

• 38 (1) Clause 111(1)(e)(ii)(A) of the Act is replaced by the following:

  • (A) the amount required by subsection 127(8), 127.44(11), 127.45(8), 127.48(12), 127.49(8) or 127.491(12) in respect of the partnership to be added in computing the investment tax credit, the CCUS tax credit (as defined in subsection 127.44(1)), the clean technology investment tax credit (as defined in subsection 127.45(1)), the clean hydrogen tax credit (as defined in subsection 127.48(1)), the CTM investment tax credit (as defined in subsection 127.49(1)) or the clean electricity investment tax credit (as defined in subsection 127.491(1)) of the taxpayer for the taxation year,

• (2) Paragraph 111(2)(b) of the Act is replaced by the following:

  • (b) paragraph (1.1)(b) is to be read as follows:

    • "(b) the amount, if any, by which

      • (i) the amount claimed under paragraph (1)(b) in respect of the taxpayer's net capital losses for the particular year

      exceeds the total of

      • (ii) all amounts in respect of the taxpayer's net capital losses that, using the formula in subparagraph (a)(ii), would be required to be claimed under paragraph (1)(b) for the particular year to produce the amount determined under paragraph (a) for the particular year, and

      • (iii) all amounts each of which is an amount deducted under section 110.6, 110.61 or 110.62 in computing the taxpayer's taxable income for a taxation year, except to the extent that, where the particular year is the year in which the taxpayer died, the amount, if any, by which the amount determined under subparagraph (i) in respect of the taxpayer for the immediately preceding taxation year exceeds the amount so determined under subparagraph (ii)."

• (3) Paragraph (b) of the description of E in the definition non-capital loss in subsection 111(8) of the Act is replaced by the following:

  • (b) an amount deducted under paragraph (1)(a.1) or (b) or section 110.6, 110.61 or 110.62, or deductible under any of paragraphs 110(1)(d) to (g) and (k), section 112 and subsections 113(1) and 138(6), in computing the taxpayer's taxable income for the year, or

• (4) Subsection (1) is deemed to have come into force on April 16, 2024.

• (5) Subsections (2) and (3) are deemed to have come into force on January 1, 2024.

• 39 (1) Section 111.1 of the Act is replaced by the following:

  Marginal note:Order of applying provisions

  • 111.1 (1) In computing an individual's taxable income for a taxation year, the provisions of this Division shall be applied in the following order: sections 110, 110.2, 111, 110.61, 110.62, 110.6 and 110.7.

  • Marginal note:No double deduction

    (2) No amount may be deducted for a taxation year of an individual, under section 110.6, in respect of any portion of a taxable capital gain to the extent that the portion of the taxable capital gain has been deducted under section 110.61 or 110.62.

• (2) Subsection (1) applies to taxation years that begin after 2023.

• 40 (1) Subsections 112(2.31) to (2.34) of the Act are repealed.

• (2) The portion of subparagraph 112(3.2)(a)(iii) of the Act before clause (A) is replaced by the following:

  • (iii) if the trust is an individual's graduated rate estate, the share was acquired as a consequence of the individual's death and the disposition occurs during the trust's first three taxation years, 1/2 of the lesser of

• (3) Subsection (1) applies in respect of dividends received after 2024.

• (4) Subsection (2) applies to taxation years of graduated rate estates of individuals who died on or after August 12, 2024.

• 41 (1) Paragraph 117.1(2)(c) of the Act is replaced by the following:

  • (c) the amount of $625,000 referred to in paragraph 110.6(2)(a), for a taxation year that begins after 2025;

• (2) Subsection (1) applies to taxation years that begin after 2024.

• 42 (1) The definition qualifying expenditure in subsection 118.041(1) of the Act is amended by striking out "or" at the end of paragraph (i), by adding "or" at the end of paragraph (j) and by adding the following after paragraph (j):

  • (k) that is included in computing a deduction under section 118.2 for any taxpayer for any taxation year. (dépense admissible)

• (2) Subsection 118.041(4) of the Act is repealed.

• (3) Subsections (1) and (2) come into force or are deemed to have come into force on January 1, 2026.

43 Section 118.1 of the Act is amended by adding the following after subsection (28):

• Marginal note:2024 — extension of time

  (29) For the purposes of applying this section, a gift made by an individual before March 2025 and after the end of a taxation year of the individual that ended after November 14, 2024 and before 2025 (referred to in this subsection as the "donation year") is deemed to have been made by the individual in the donation year and not in the individual's 2025 taxation year if

  • (a) a credit for the gift would be deductible under this section in computing the individual's tax payable under this Part for the donation year if it were made immediately before the end of that year;

  • (b) the individual claims the amount of the gift under subsection (3) for the donation year;

  • (c) the gift was in the form of cash or was transferred by way of cheque, credit card, money order or electronic payment; and

  • (d) the gift was not made

    • (i) through a payroll deduction, or

    • (ii) if the individual died after 2024, by the individual's will.

• 44 (1) Subsection 122.62(10) of the Act is amended by striking out "and" at the end of paragraph (a), by adding "and" at the end of paragraph (b) and by adding the following after paragraph (b):

  • (c) at the beginning of the month, the person satisfied the conditions set out in paragraphs (c) to (e) of the definition eligible individual in section 122.6.

• (2) Subsection (1) applies to months that begin after August 31, 2025.

• 45 (1) The Act is amended by adding the following after section 122.92:

  SUBDIVISION A.7Personal Support Workers Tax Credit

  Marginal note:Definitions

  • 122.93 (1) The following definitions apply in this section.

    eligible health care establishment

    eligible health care establishment means a hospital, nursing care facility, residential care facility, community care facility for the elderly, home health care establishment and similar regulated health care establishments. (établissement de soins de santé admissible)

    eligible personal support worker

    eligible personal support worker, for a taxation year, means an individual

    • (a) who performs duties of employment in the capacity of a personal support worker for an eligible health care establishment during the taxation year (in this definition referred to as the "duties for the year");

    • (b) who, in the course of performing the duties for the year, ordinarily provides one-on-one care and essential support to optimize and maintain another individual's health, well-being, safety, autonomy and comfort consistent with that other individual's health care needs as directed by a regulated health care professional or a provincial or community health organization; and

    • (c) whose main duties of employment, in respect of the duties for the year, include assisting individuals with activities of daily living and mobilization. (préposé aux services de soutien à la personne admissible)

    return of income

    return of income, filed by an eligible personal support worker for a taxation year, means a return of income (other than a return of income under subsection 70(2) or 104(23), paragraph 128(2)(e) or subsection 150(4)) that is required to be filed for the taxation year or that would be required to be filed if the eligible personal support worker had tax payable under this Part for the taxation year. (déclaration de revenu)

    yearly eligible remuneration

    yearly eligible remuneration of an individual for a taxation year means the total of all amounts, each of which

    • (a) would be, in the absence of section 8 and paragraph 81(1)(a), the individual's income for the taxation year from an office or employment as an eligible personal support worker for an eligible health care establishment in a province, other than duties performed in Newfoundland and Labrador, the Northwest Territories and British Columbia; and

    • (b) is certified by the individual's employer in the prescribed form and manner to be an amount that satisfies the description under paragraph (a). (rémunération annuelle admissible)

  • Marginal note:Deemed overpayment — yearly eligible remuneration

    (2) An eligible personal support worker, for a taxation year that begins after 2025 and that ends before 2031, who 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 equal to the lesser of

    • (a) $1,100, and

    • (b) 5% of the eligible personal support worker's yearly eligible remuneration for the taxation year.

  • Marginal note:Effect of bankruptcy

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

    • (a) despite subsection 128(2), any reference to a 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 yearly eligible remuneration for the taxation year ending on December 31 of the particular calendar year is deemed to include the individual's yearly eligible remuneration for the taxation year that begins on January 1 of the particular calendar year.

  • Marginal note:Special rules in the event of death

    (4) For the purpose of this Subdivision, if an individual dies before the end of a calendar year, 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) applies to the 2026 and subsequent taxation years.

• 46 (1) Subclause 126(1)(b)(ii)(A)(III) of the Act is replaced by the following:

  • (III) the total of all amounts each of which is an amount deducted under section 110.6, 110.61 or 110.62 or paragraph 111(1)(b), or deductible under any of paragraphs 110(1)(d) to (g) and sections 112 and 113, in computing the taxpayer's taxable income for the year, and

• (2) Subclause 126(2.1)(a)(ii)(A)(III) of the Act is replaced by the following:

  • (III) the total of all amounts each of which is an amount deducted under section 110.6, 110.61 or 110.62 or paragraph 111(1)(b), or deductible under any of paragraphs 110(1)(d) to (g) and sections 112 and 113, in computing the taxpayer's taxable income for the year, and

• (3) Subparagraph 126(3)(b)(iii) of the Act is replaced by the following:

  • (iii) the total of all amounts each of which is an amount deducted under section 110.6, 110.61 or 110.62 or paragraph 111(1)(b), or deductible under any of paragraphs 110(1)(d) to (d.3), (f) and (g), in computing the taxpayer's taxable income for the year,

• (4) Subsection 126(5.1) of the Act is replaced by the following:

  • Marginal note:Deductions for specified capital gains

    (5.1) If in a taxation year an individual has claimed a deduction under section 110.6, 110.61 or 110.62 in computing the individual's taxable income for the year, for the purposes of this section the individual shall be deemed to have claimed the deduction under section 110.6, 110.61 or 110.62 in respect of such taxable capital gains or portion thereof as the individual may specify in the individual's return of income required to be filed pursuant to section 150 for the year or, where the individual has failed to so specify, in respect of such taxable capital gains as the Minister may specify in respect of the taxpayer for the year.

• (5) Paragraph (g) of the definition non-business-income tax in subsection 126(7) of the Act is replaced by the following:

  • (g) that can reasonably be attributed to a taxable capital gain or a portion thereof in respect of which the taxpayer or a spouse or common-law partner of the taxpayer has claimed a deduction under section 110.6, 110.61 or 110.62, or

• (6) Subparagraph 126(9)(a)(ii) of the Act is replaced by the following:

  • (ii) for the purpose of subparagraph (1)(b)(i), any portion of income in respect of which an amount was deducted under section 110.6, 110.61 or 110.62 in computing the taxpayer's income, or

• (7) Subsections (1) to (6) are deemed to have come into force on January 1, 2024.

• 47 (1) The definition critical mineral in subsection 127(9) of the Act is replaced by the following:

  critical mineral

  critical mineral means bismuth, cesium, chromium, cobalt, copper, fluorspar, gallium, germanium, graphite, indium, lithium, magnesium, manganese, molybdenum, nickel, niobium, a platinum group metal, a rare earth element, scandium, tantalum, tellurium, tin, titanium, tungsten, uranium, vanadium or zinc; (minéral critique)

• (2) The definition first term shared-use equipment in subsection 127(9) of the Act is replaced by the following:

  first term shared-use-equipment

  first term shared-use-equipment, of a taxpayer, means depreciable property of the taxpayer (other than prescribed depreciable property of a taxpayer) that is used by the taxpayer, during its operating time in the period (in this subsection and subsection (11.5) referred to as the "first period") beginning at the time the property was acquired by the taxpayer and ending at the end of the taxpayer's first taxation year ending at least 12 months after that time, primarily for the prosecution of scientific research and experimental development in Canada, but does not include general purpose office equipment or furniture; (matériel à vocations multiples de première période)

• (3) The definition government assistance in subsection 127(9) of the Act is replaced by the following:

  government assistance

  government assistance  means assistance from a government, municipality or other public authority whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or as any other form of assistance, other than as an excluded loan (as defined in subsection 12(11)), as a deduction under subsection (5) or (6) or as a deemed payment on account of tax payable under subsection 127.44(2), 127.45(2), 127.48(2), 127.49(2) or 127.491(2); (aide gouvernementale) 

• (4) The definition second term shared-use equipment in subsection 127(9) of the Act is replaced by the following:

  second term shared-use-equipment

  second term shared-use-equipment, of a taxpayer, means property of the taxpayer that was first term shared-use-equipment and that is used by the taxpayer, during its operating time in the period (in this subsection and subsection (11.5) referred to as the "second period") beginning at the time the property was acquired by the taxpayer and ending at the end of the taxpayer's first taxation year ending at least 24 months after that time, primarily for the prosecution of scientific research and experimental development in Canada; (matériel à vocations multiples de deuxième période)

• (5) Paragraph (b) of the definition contract payment in subsection 127(9) of the Act is replaced by the following:

  • (b) an amount, other than a prescribed amount, payable by a Canadian government or municipality or other Canadian public authority or by a person exempt, because of section 149, from tax under this Part on all or part of the person's taxable income for scientific research and experimental development to be performed for it or on its behalf; (paiement contractuel)

• (6) 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 2025 and before 2028 (including, for greater certainty, an expense that is deemed by subsection 66(12.66) to be incurred before 2028) 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),

• (7) 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 2025 and before April 2027,

  • (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 2025 and before April 2027, and

• (8) Paragraph (a) of the definition qualified expenditure in subsection 127(9) of the Act is amended by striking out "or" at the end of subparagraph (i) and at the end of subparagraph (ii) and by adding the following after subparagraph (ii):

  • (iii) an expenditure for first term shared-use-equipment or second term shared-use-equipment, or

  • (iv) an expenditure described in paragraph 37(1)(b), or

• (9) Paragraph (d) of the definition qualified expenditure in subsection 127(9) of the Act is repealed.

• (10) Subsection 127(9) is amended by adding the following in alphabetical order:

  consolidated financial statements

  consolidated financial statements means financial statements in which the assets, liabilities, income, expenses and cash flows of the members of a group are presented as those of a single economic entity; (états financiers consolidés)

  consolidated group

  consolidated group means a group of entities in respect of which an ultimate parent entity is required to prepare consolidated financial statements, or would be so required if equity interests in any of the entities were traded on a public securities exchange; (groupe consolidé)

  eligible Canadian public corporation

  eligible Canadian public corporation, at the relevant time in a taxation year, means

  • (a) a corporation that

    • (i) is resident in Canada,

    • (ii) is a public corporation, or would be a public corporation if the words "designated stock exchange in Canada" in paragraph (a) of the definition public corporation in subsection 89(1) were read as "designated stock exchange",

    • (iii) is not controlled, directly or indirectly in any manner whatever, by one or more non-resident persons, and

    • (iv) would not, if each share of its capital stock that is owned by a non-resident person (as determined, absent actual knowledge, based on publicly available information, including information filed pursuant to applicable securities laws before the year) were owned by a particular person, be controlled by the particular person, or

  • (b) an eligible subsidiary; (société publique canadienne admissible)

  eligible subsidiary

  eligible subsidiary means a corporation

  • (a) that is resident in Canada, and

  • (b) not less than 90% of the issued shares of each class of the capital stock of which is owned, directly or indirectly, by one or more corporations that are eligible Canadian public corporations because of paragraph (a) of that definition; (filiale admissible)

  entity

  entity means

  • (a) a corporation, partnership or trust, or

  • (b) any other arrangement, association, organization or body whether registered or unregistered for which separate financial accounts are prepared; (entité)

  financial statements

  financial statements means financial statements prepared in accordance with acceptable accounting standards, as defined in subsection 18.21(1);  (états financiers)

  fiscal year

  fiscal year means an annual accounting period in respect of which a corporation prepares its financial statements;  (exercice)

  ultimate parent entity

  ultimate parent entity, in respect of a group of entities, means the member of the group that would be the ultimate parent entity, as defined in subsection 233.8(1), of the group if the group were a multinational enterprise group as defined in subsection 233.8(1). (entité mère ultime)

• (11) The portion of subsection 127(10.1) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Additions to investment tax credit

    (10.1) For the purposes of paragraph (e) of the definition investment tax credit in subsection (9), if a corporation was throughout a taxation year a Canadian-controlled private corporation or an eligible Canadian public corporation, there shall be added in computing the corporation's investment tax credit at the end of the year the amount that is 20% of the least of

• (12) Subsection 127(10.2) is replaced by the following:

  • Marginal note:Expenditure limit — CCPC

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

    $6 million × [($60 million − A) ÷ $60 million]

    where

    A

    is

    • (a) nil, if the following amount is less than or equal to $15 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 $60 million and the amount by which the amount determined under subparagraph (a)(i) or (ii), as the case may be, exceeds $15 million.

• (13) Subsection 127(10.3) of the Act is replaced by the following:

  • Marginal note:Shared limit — associated CCPCs

    (10.3) If all of the Canadian-controlled private corporations that are associated with each other in a taxation year file with the Minister in prescribed form an agreement under which, for the purpose of subsection (10.1), they allocate an amount to one or more of them for the year, the expenditure limit for the year of each of the corporations is the amount so allocated if the total of the amounts so allocated does not exceed

    • (a) unless subsection (10.32) applies, the amount determined for the year by the formula in subsection (10.2); or

    • (b) if subsection (10.32) applies, the amount determined for the year under that subsection.

  • Marginal note:Revenue election for single CCPC

    (10.31) Despite subsection (10.2), for the purpose of subsection (10.1), if throughout a taxation year a particular Canadian-controlled private corporation is not associated with another corporation and the particular corporation files with the Minister in the prescribed form and manner, the particular corporation may elect that its expenditure limit for the year be determined under subsection (10.6) as if the particular corporation were an eligible Canadian public corporation that is not a member of a consolidated group.

  • Marginal note:Revenue election for CCPC having associated corporations

    (10.32) Despite subsection (10.2), and subject to subsections (10.21) to (10.4), for the purpose of subsection (10.1), if at any time in a taxation year one or more particular Canadian-controlled private corporations are members of a group of associated corporations and all those particular corporations file with the Minister a prescribed form, those particular corporations may elect that the expenditure limit for the particular corporations be determined for the year under subsection (10.6), calculated as if

    • (a) each Canadian-controlled private corporation in the group were an eligible Canadian public corporation;

    • (b) the group were a consolidated group;

    • (c) the amount determined under subparagraph (a)(ii) of the description of A in subsection (10.6) were the total of all amounts, each of which is the average, over the period of three fiscal years immediately preceding and ending in the last calendar year that ended before the end of the particular taxation year, of annual revenue reflected in the financial statements of each corporation that is a member of the group; and

    • (d) the annual revenue described in paragraph (c)

      • (i) must include each corporation's reasonable share of annual revenue reflected in the financial statements of any partnership or trust in which the corporation held an interest, and

      • (ii) may include reasonable adjustments to reflect the annual revenue of the group as that of a single economic entity.

• (14) Section 127(10.6) of the Act is replaced by the following:

  • Marginal note:Expenditure limit determination in certain cases

    (10.5) Notwithstanding any other provision of this section,

    • (a) where a Canadian-controlled private corporation (in this paragraph referred to as the "first corporation") has more than one taxation year ending in the same calendar year and it is associated in two or more of those taxation years with another Canadian-controlled private corporation that has a taxation year ending in that calendar year, the expenditure limit of the first corporation for each taxation year in which it is associated with the other corporation ending in that calendar year is, subject to the application of paragraph (b), an amount equal to its expenditure limit for the first such taxation year determined without reference to paragraph (b); and

    • (b) where a Canadian-controlled private corporation has a taxation year that is less than 51 weeks, its expenditure limit for the year is that proportion of its expenditure limit for the year determined without reference to this paragraph that the number of days in the year is of 365.

  • Marginal note:Expenditure limit — ECPC

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

    $6 million × [($60 million − A) ÷ $60 million]

    where

    A

    is

    • (a) nil, if the following amount is less than or equal to $15 million:

      • (i) if the particular corporation is not a member of a consolidated group in the particular taxation year, the amount that is the average, over the period of three fiscal years immediately preceding and ending before the particular taxation year, of its annual revenue based on the amounts reflected in the financial statements of the corporation, and

      • (ii) if the particular corporation is a member of a consolidated group in the particular taxation year, the amount that is the average, over the period of three fiscal years immediately preceding and ending before the particular taxation year, of the annual revenue reflected in the consolidated financial statements of the group, and

    • (b) in any other case, the lesser of $60 million and the amount by which the amount determined under subparagraph (a)(i) or (ii), as the case may be, exceeds $15 million.

  • Marginal note:Expenditure limits — consolidated ECPCs

    (10.61) Despite subsection (10.6), the expenditure limit for a taxation year of an eligible Canadian public corporation that is, at any time in the year, a member of a consolidated group is, except as otherwise provided in this section, nil.

  • Marginal note:Consolidated ECPCs

    (10.62) If all of the eligible Canadian public corporations that are members of a consolidated group file with the Minister in prescribed form an agreement under which, for the purpose of subsection (10.1), they allocate an amount to one or more of them for the year and the amount so allocated or the total of the amounts so allocated, as the case may be, does not exceed the amount determined for the year by the formula in subsection (10.6), the expenditure limit for the year of each of the corporations is the amount so allocated to it.

  • Marginal note:Failure to file agreement

    (10.63) If any of the eligible Canadian public corporations that are members of a consolidated group fails to file with the Minister an agreement as contemplated by subsection (10.62) within 30 days after notice in writing by the Minister is forwarded to any of them that such an agreement is required for the purposes of this Part, the Minister must, for the purpose of subsection (10.1), allocate an amount to one or more of them for the year, which amount or the total of which amounts, as the case may be, must equal the amount determined for the year by the formula in subsection (10.6), and in any such case the expenditure limit for the year of each of the corporations is the amount so allocated to it.

  • Marginal note:Determinations in certain cases

    (10.64) Despite any other provision of this section,

    • (a) where an eligible Canadian public corporation (in this paragraph referred to as the "first corporation") has more than one taxation year ending in the same calendar year and in two or more of those taxation years it is a member of a consolidated group in which another eligible Canadian public corporation has a taxation year ending in that calendar year, the expenditure limit of the first corporation for each taxation year in which it is in the same group as the other corporation ending in that calendar year is, subject to the application of paragraph (b), an amount equal to its expenditure limit for the first such taxation year determined without reference to paragraph (b);

    • (b) where an eligible Canadian public corporation has a taxation year that is less than 51 weeks, its expenditure limit for the year is that proportion of its expenditure limit for the year determined without reference to this paragraph that the number of days in the year is of 365;

    • (c) for the purpose of subparagraph (a)(i) of the description of A in subsection (10.6), where one or more of the fiscal years of an eligible Canadian public corporation is less than 51 weeks, the revenue reflected in the financial statements for each of those fiscal years must be determined by multiplying that amount by the ratio that 365 is of the number of days in that year;

    • (d) for the purpose of subparagraph (a)(ii) of the description of A in subsection (10.6), where one or more of the fiscal years of the ultimate parent entity of a consolidated group is less than 51 weeks, the revenue reflected in the consolidated financial statements of the entity for each of those fiscal years must be determined by multiplying that amount by the ratio that 365 is of the number of days in that year; and

    • (e) for the purpose of subparagraphs (a)(i) and (ii) of the description of A in the formula in subsection (10.6),

      • (i) the average annual revenue referred to in each subparagraph is to be calculated over the actual number of fiscal years if there are less than three fiscal periods immediately preceding and ending before the particular taxation year, and

      • (ii) if paragraph (10.32)(c) applies, the average annual revenue referred to in that paragraph is to be calculated over the actual number of fiscal years if there are less than three fiscal years immediately preceding and ending in the calendar year referred to in that paragraph.

• (15) Paragraph 127(11.1)(c.1) of the Act is repealed.

• (16) Subsection 127(11.2) of the Act is replaced by the following:

  • Marginal note:Time of acquisition

    (11.2) In applying subsections (5), (7) and (8), paragraphs (a) and (a.1) of the definition investment tax credit in subsection (9) and section 127.1, qualified property and first term shared-use-equipment are deemed not to have been acquired by a taxpayer — and expenditures incurred to acquire property described in paragraph 37(1)(b) are deemed not to have been incurred — before the property is considered to have become available for use by the taxpayer, determined without reference to paragraphs 13(27)(c) and (28)(d).

• (17) Subsection 127(11.5) of the Act is replaced by the following:

  • Marginal note:Adjustments to qualified expenditures

    (11.5) For the purposes of the definition qualified expenditure in subsection (9),

    • (a) the amount of an expenditure (other than a prescribed proxy amount) incurred by a taxpayer in a taxation year is deemed to be the amount of the expenditure determined without reference to subsections 13(7.1) and (7.4) and after the application of subsection (11.6); and

    • (b) the amount of an expenditure incurred by a taxpayer in the taxation year that ends coincidentally with the end of the first period (within the meaning assigned in the definition first term shared-use-equipment in subsection (9)) or the second period (within the meaning assigned in the definition second term shared-use-equipment in subsection (9)) in respect of first term shared-use-equipment or second term shared-use-equipment, respectively, of the taxpayer is deemed to be 1/4 of the capital cost of the equipment determined after the application of subsection (11.6) in accordance with the following rules:

      • (i) the capital cost to the taxpayer must be computed as if no amount were added because of section 21, and

      • (ii) the capital cost to the taxpayer is determined without reference to subsections 13(7.1) and (7.4).

• (18) The portion of subsection 127(11.6) of the Act after paragraph (b) and before paragraph (c) is replaced by the following:

  the amount of the expenditure incurred by the taxpayer for the service or property and the capital cost to the taxpayer of the property are deemed to be

• (19) Subparagraph 127(11.6)(d)(i) of the Act is replaced by the following:

  • (i) the capital cost to the taxpayer of the property otherwise determined, and

• (20) Subsection 127(11.8) of the Act is amended by striking out "and" at the end of paragraph (a), by adding "and" at the end of paragraph (b) and by adding the following after paragraph (b):

  • (c) the leasing of a property is deemed to be the rendering of a service.

• (21) Subsection 127(33) of the Act is replaced by the following:

  • Marginal note:Certain non-arm's length transfers

    (33) Subsections (27) to (29), (34) and (35) do not apply to a taxpayer or partnership (in this subsection referred to as the "transferor") that disposes of a property to a person or partnership (in this subsection and subsections (34) and (35) referred to as the "purchaser"), that does not deal at arm's length with the transferor, if the purchaser acquired the property in circumstances where the cost of the property to the purchaser would have been an expenditure of the purchaser described in subclause 37(8)(a)(ii)(A)(III) or (B)(III) but for subparagraph 2902(b)(iii) of the Income Tax Regulations.

• (22) Subsection (1) applies in respect of expenses renounced under a flow-through share agreement entered into after November 4, 2025.

• (23) Subsections (2), (4), (5), (8), (9) and (15) to (21) apply in respect of property acquired on or after December 16, 2024 and, in the case of lease costs, to expenditures incurred on or after December 16, 2024.

• (24) Subsection (3) is deemed to have come into force on April 16, 2024.

• (25) Subsections (6) and (7) apply in respect of expenses renounced under a flow-through share agreement entered into after March 2025.

• (26) Subsections (10) to (14) apply to taxation years that begin on or after December 16, 2024.

• 48 (1) The formula and its description in the definition qualifying income limit in subsection 127.1(2) of the Act is replaced by the following:

  $500,000 × [($60 million − A) ÷ $60 million]

  where

  A

  is

  • (a) nil, if $15 million is greater than or equal to the amount (in paragraph (b) referred to as the "taxable capital amount") that is the total of the corporation's taxable capital employed in Canada (within the meaning assigned by section 181.2 or 181.3) for its immediately preceding taxation year and the taxable capital employed in Canada (within the meaning assigned by section 181.2 or 181.3) of each associated corporation for the associated corporation's 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 $60 million and the amount by which the taxable capital amount exceeds $15 million; (plafond de revenu admissible)

• (2) Subparagraph (f)(i) of the definition refundable investment tax credit in subsection 127.1(2) of the Act is replaced by the following:

  • (i) the portion of the amount required by subsection 127(10.1) to be added in computing the taxpayer's investment tax credit at the end of the year that is in respect of qualified expenditures (other than expenditures of a capital nature) incurred by the taxpayer in the year, and

• (3) Subsection 127.1(2.01) of the Act is replaced by the following:

  • Marginal note:Addition to refundable investment tax credit

    (2.01) In the case of a taxpayer that is a Canadian-controlled private corporation or an eligible Canadian public corporation, and is not a qualifying corporation or an excluded corporation, the refundable investment tax credit of the taxpayer for a taxation year is the amount determined by the formula

    (40% × (A − B)) + (C − D)

    where

    A

    is the total of

    • (a) the portion of the amount required by subsection 127(10.1) to be added in computing the taxpayer's investment tax credit at the end of the year that is in respect of qualified expenditures (other than expenditures of a current nature) incurred by the taxpayer in the year, and

    • (b) is all amounts determined under paragraph (a.1) of the definition investment tax credit in subsection 127(9) in respect of expenditures for which an amount is included in paragraph (a);

    B

    is the total of

    • (a) the portion of the total of all amounts deducted by the taxpayer under subsection 127(5) for the year or a preceding taxation year (other than an amount deemed by subsection (3) to have been so deducted for the year) that can reasonably be considered to be in respect of the total determined for A, and

    • (b) the portion of the total of all amounts required by subsection 127(6) to be deducted in computing the taxpayer's investment tax credit at the end of the year that can reasonably be considered to be in respect of the total determined for A;

    C

    is the total of

    • (a) the portion of the amount required by subsection 127(10.1) to be added in computing the taxpayer's investment tax credit at the end of the year that is in respect of qualified expenditures (other than expenditures of a capital nature) incurred by the taxpayer in the year, and

    • (b) all amounts determined under paragraph (a.1) of the definition investment tax credit in subsection 127(9) in respect of expenditures for which an amount is included in paragraph (a); and

    D

    is the total of

    • (a) the portion of the total of all amounts deducted by the taxpayer under subsection 127(5) for the year or a preceding taxation year (other than an amount deemed by subsection (3) to have been so deducted for the year) that can reasonably be considered to be in respect of the total determined for C, and

    • (b) the portion of the total of all amounts required by subsection 127(6) to be deducted in computing the taxpayer's investment tax credit at the end of the year that can reasonably be considered to be in respect of the total determined for C.

• (4) Subsection (1) applies to taxation years that begin on or after December 16, 2024.

• (5) Subsections (2) and (3) apply in respect of property acquired on or after December 16, 2024 and, in the case of lease costs, to expenditures incurred on or after December 16, 2024.

• 49 (1) Section 127.42 of the Act is amended by adding the following after subsection (8):

  • Marginal note:Deemed rebate in respect of fuel charges

    (9) An amount for a designated province included in the total of all amounts deemed by this section to have been paid on account of tax payable for a taxation year is deemed to have been paid during the taxation year as a rebate in respect of charges levied under Part 1 of the Greenhouse Gas Pollution Pricing Act in respect of the designated province.

• (2) Subsection (1) applies to the 2021 and subsequent taxation years.

• 50 (1) The portion of subsection 127.421(2) of the Act before the formula is replaced by the following:

  • Marginal note:Deemed amount 2019-2023

    (2) A corporation that files, on or before December 31, 2024, a return of income for a particular taxation year ending in 2023 (other than a final return on dissolution) is deemed to have paid on a date specified by the Minister of Finance, on account of tax payable under this Part for that taxation year, the total of all amounts, each of which is an amount, for each designated province, for each calendar year that is 2019, 2020, 2021, 2022 and 2023, determined by the formula

• (2) The portion of subsection 127.421(3) of the Act before the formula is replaced by the following:

  • Marginal note:Deemed amount after 2023

    (3) A corporation that files a return of income for a particular taxation year ending in a calendar year after 2023 (other than a final return on dissolution) is, if the return is filed on or before July 15 of the following calendar year, deemed to have paid on October 1st of that calendar year, on account of tax payable under this Part for the particular taxation year, the amount determined by the formula

• (3) Subsection 127.421(6) of the Act is replaced by the following:

  • Marginal note:Payment — not taxable

    (6) There is not to be included in computing the income of a corporation for a taxation year an amount that is deemed under subsection (2) or (3) to have been paid on account of tax payable under this Part for a taxation year.

• (4) Subsections 127.421(8) and (9) of the Act are replaced by the following:

  • Marginal note:Predecessor corporation — before 2023

    (8) For the purpose of subsection (2), where there has been an amalgamation of two or more corporations before 2023, the corporation filing a return of income in 2023 is deemed to be the same corporation as and a continuation of each predecessor corporation that was registered with the Minister to make remittances required under section 153 under the corporation's 2023 business number.

  • Marginal note:Predecessor corporation — 2023 and subsequent years

    (9) For the purposes of subsections (2) and (3), the number of persons employed by a corporation in a calendar year after 2022 is deemed to be nil in that year if the corporation is formed by an amalgamation in that calendar year.

• (5) Subsection 127.421(11) of the Act is replaced by the following:

  • Marginal note:Deemed taxation year

    (11) For the purposes of subsections (2) and (3), if a corporation has more than one taxation year ending in the same calendar year, the particular taxation year is the first taxation year that ends in that calendar year.

• (6) Subsections (1) to (5) are deemed to have come into force on June 20, 2024.

• 51 (1) Subparagraph (c)(iii) of the definition dual-use equipment in subsection 127.44(1) of the Act is replaced by the following:

  • (iii) incorporated into another property that would not otherwise be described in paragraph (a) or (b) or subparagraphs (i) and (ii) if the incorporation causes the other property to satisfy the description in paragraph (a) or (b) or subparagraph (i) or (ii); or

• (2) Paragraph (e) of the definition preliminary CCUS work activity in subsection 127.44(1) of the Act is replaced by the following:

  • (e) clearing or excavating land, except excavation directly related to the installation of property that is described in Class 57 or 58 of Schedule II to the Income Tax Regulations or that is dual-use equipment. (travaux préliminaires de CUSC)

• (3) Subparagraph (b)(ii) of the description of A in the definition qualified carbon capture expenditure in subsection 127.44(1) of the Act is replaced by the following:

  • (ii) if the equipment is described in subparagraph (a)‍(ii) of the definition dual-use equipment in this subsection, or is acquired in relation to such equipment, the mass of water expected to be supplied to a qualified CCUS project over the project's total CCUS project review period is of the total mass of water expected to be processed by the equipment in that period, based on the project's most recent project plan,

• (4) Paragraphs (a) and (b) of the definition specified percentage in subsection 127.44(1) of the Act are replaced by the following:

  • (a) qualified carbon capture expenditure if incurred in respect of carbon capture

    • (i) directly from ambient air

      • (A) after 2021 and before 2036, 60%,

      • (B) after 2035 and before 2041, 30%, or

      • (C) after 2040, 0%, or

    • (ii) other than directly from ambient air

      • (A) after 2021 and before 2036, 50%,

      • (B) after 2035 and before 2041, 25%, or

      • (C) after 2040, 0%; and

  • (b) qualified carbon transportation expenditure, qualified carbon storage expenditure or qualified carbon use expenditure if incurred

    • (i) after 2021 and before 2036, 37 1/2%,

    • (ii) after 2035 and before 2041, 18 3/4%, or

    • (iii) after 2040, 0%. (pourcentage déterminé)

• (5) Subsection 127.44(1) of the Act is amended by adding the following in alphabetical order:

  excluded CCUS equipment

  excluded CCUS equipment, in respect of a CCUS project of a taxpayer, means equipment that

  • (a) is expected to be used in the production of hydrogen and would be required to produce hydrogen even if no CCUS process was applied by the taxpayer to produce the hydrogen;

  • (b) is expected to be used for

    • (i) natural gas processing, or

    • (ii) acid gas injection; or

  • (c) is oxygen production equipment. (matériel de CUSC exclu)

• (6) Subsection 127.44(3) of the Act is replaced by the following:

  • Marginal note:Deemed deduction

    (3) For the purposes of this section, paragraph 12(1)‍(t), subsection 13(7.‍1), the description of I in the definition undepreciated capital cost in subsection 13(21), subsection 53(2), sections 127.‍45, 127.‍48, 127.‍49, 127.491 and 129 and Part XII.‍7, the amount deemed under subsection (2) to have been paid by a taxpayer for a taxation year is deemed to have been deducted from the taxpayer's tax otherwise payable under this Part for the year.

• (7) Subparagraph 127.44(9)(b)(ii) of the Act is amended by striking out "or" at the end of clause (B) and by replacing clause (C) with the following:

  • (C) for which an investment tax credit or any other clean economy tax credit (as defined in subsection 127.47(1)) is deducted, or

  • (D) in respect of a specified natural gas energy system (as defined in subsection 127.491(1)), if a clean electricity investment tax credit (as defined in subsection 127.491(1)) is deducted by any person in respect of any property that is part of the system,

• (8) Subsection 127.44(17) of the Act is replaced by the following:

  • Marginal note:Late filing

    (17) The Minister may accept the late filing by a qualifying taxpayer of the prescribed form containing prescribed information referred to in subsection (2) until the later of December 31, 2026 and one year after the filing-due date referred to in subsection (2), but no payment by the taxpayer is deemed to arise under that subsection until the prescribed form containing prescribed information has been filed with the Minister.

• (9) Subsections (1), (2), (5) and (8) are deemed to have come into force on January 1, 2022.

• (10) Subsection (3) is deemed to have come into force on March 28, 2023.

• (11) Subsection (4) is deemed to have come into force on November 4, 2025.

• (12) Subsections (6) and (7) are deemed to have come into force on April 16, 2024.

• 52 (1) The definition small modular nuclear reactor in subsection 127.45(1) of the Act is repealed.

• (2) The definition non-clean technology use in subsection 127.45(1) of the Act is replaced by the following:

  non-clean technology use

  non-clean technology use means a use of a particular property at a particular time that would, if the property were acquired at that time, result in the property not being a clean technology property, determined without reference to paragraph (b) of the definition clean technology property.  (utilisation non concernée par la technologie propre)

• (3) Subparagraphs (d)(i) to (vii) of the definition clean technology property in subsection 127.45(1) of the Act are replaced by the following:

  • (i) described in subparagraph (d)(ii), (iii.1), (v), (vi) or (xiv) of Class 43.1 in Schedule II to the Income Tax Regulations, but excluding a test wind turbine (within the meaning assigned by subsection 1219(3) of the Income Tax Regulations),

  • (ii) described in subparagraph (d)(xviii) or (xix) of Class 43.1 in Schedule II to the Income Tax Regulations, but excluding equipment that uses any fossil fuel in operation,

  • (iii) described in subparagraph (d)(i) of Class 43.1 in Schedule II to the Income Tax Regulations,

  • (iv) described in Class 56 in Schedule II to the Income Tax Regulations,

  • (iv.1) described in subparagraph (d)(xxi) of Class 43.1 or subparagraph (b)(ii) of Class 43.2 in Schedule II to the Income Tax Regulations and used primarily to charge or dispense hydrogen to property described in Class 56 in Schedule II to the Income Tax Regulations,

  • (v) equipment that is

    • (A) part of a system that does not extract fossil fuels for sale,

    • (B) used exclusively for the purpose of generating electrical energy or heat energy, or a combination of electrical energy and heat energy, solely from geothermal energy, and

    • (C) described in subparagraph (d)(vii) of Class 43.1 in Schedule II to the Income Tax Regulations,

  • (vi) concentrated solar energy equipment,

  • (vii) small nuclear energy property, or

  • (viii) incorporated into another property described in any of subparagraphs (i) to (vii), as part of a refurbishment of the other property provided that on completion of the refurbishment the other property is still described in any of subparagraphs (i) to (vii). (bien de technologie propre)

• (4) The definition clean technology property in subsection 127.45(1) of the Act, as amended by subsection (3), is amended by striking out "or" at the end of subparagraph (d)(vii) and by replacing subparagraph (d)(viii) with the following:

  • (viii) waste biomass electricity generation equipment or waste biomass heat generation equipment that is acquired after November 20, 2023, determined without reference to subsection (4), or

  • (ix) incorporated into another property described in any of subparagraphs (i) to (viii), as part of a refurbishment of the other property provided that on completion of the refurbishment the other property is still described in any of subparagraphs (i) to (viii). (bien de technologie propre)

• (5) Paragraph (g) of the definition concentrated solar energy equipment  in subsection 127.45(1) of the Act is replaced by the following:

  • (g) eligible transmission equipment, as defined in subsection 1104(13) of the Income Tax Regulations;

• (6) Paragraph (d) of the definition excluded equipment in subsection 127.45(1) of the Act is replaced by the following:

  • (d) a vehicle; and

• (7) Paragraphs (b) to (d) of the definition specified percentage in subsection 127.45(1) of the Act are replaced by the following:

  • (b) subject to paragraph (a),

    • (i) on or after March 28, 2023 and before January 1, 2034, 30%, and

    • (ii) after December 31, 2033 and before January 1, 2035, 15%; and

  • (c) after December 31, 2034, nil. (pourcentage déterminé)

• (8) Subsection 127.45(1) of the Act is amended by adding the following in alphabetical order:

  nuclear facility

  nuclear facility includes a single site, contiguous sites and adjacent sites where nuclear fission reactors are located or will be located. (installation nucléaire)

  preliminary work activity

  preliminary work activity means an activity that is preliminary to the acquisition, construction, fabrication or installation by or on behalf of a taxpayer of property including, but not limited to, a preliminary activity that is  

  • (a) obtaining a right of access or right of way to a project site or obtaining permits or regulatory approvals (including conducting environmental assessments);

  • (b) performing front-end design or engineering work (including front-end engineering design studies) or process engineering work for the development of the project, including

    • (i) collecting and analyzing of site data,

    • (ii) calculating energy, mass, water or air balances,

    • (iii) simulating and analyzing the performance and cost of process design options,

    • (iv) selecting the optimum process design, and

    • (v) conducting feasibility studies or pre-feasibility studies;

  • (c) clearing or excavating land, except excavation directly related to the installation of clean technology property;

  • (d) constructing a temporary access road to the project site; or

  • (e) drilling of a well. (travaux préliminaires)

  refurbishment

  refurbishment means significant alterations, renovations, improvements or additions to a property to substantially 

  • (a) extend its useful life;

  • (b) increase its capacity; or

  • (c) improve its efficiency. (remise en état)

  small nuclear energy property

  small nuclear energy property means property that

  • (a) is part of a fixed location system that is used all or substantially all to generate electrical energy or heat energy, or a combination of electrical energy and heat energy, from nuclear fission as determined on an annual basis;

  • (b) is located at a nuclear facility where, at the time the property becomes available for use, the total combined gross-rated thermal generating capacity of all planned and existing nuclear fission reactors at the facility is reasonably expected not to exceed 1,400 megawatts thermal;

  • (c) is

    • (i) a reactor,

    • (ii) a reactor vessel,

    • (iii) a reactor control rod,

    • (iv) a moderator,

    • (v) cooling equipment,

    • (vi) heat generating equipment,

    • (vii) nuclear fission fuel handling equipment,

    • (viii) a containment structure,

    • (ix) electrical generating equipment,

    • (x) equipment for the distribution of heat energy within the system, or

    • (xi) equipment that is physically and functionally integrated with property described in any of subparagraphs (i) to (x) and that is ancillary equipment (such as control equipment) used solely to support the functioning of property described in any of subparagraphs (i) to (x); and

  • (d) is not 

    • (i) nuclear fission fuel,

    • (ii) property used in nuclear waste disposal or storage,

    • (iii) transmission equipment,

    • (iv) distribution equipment,

    • (v) a vehicle,

    • (vi) property that would be included in Class 17 in Schedule II to the Income Tax Regulations if that Class were read without reference to its paragraph (a.1),

    • (vii) equipment used to export heat energy from the system, or

    • (viii) a building or other structure. (bien pour l'énergie nucléaire de petite taille)

• (9) Subsection 127.45(1) of the Act is amended by adding the following in alphabetical order:

  eligible bioenergy fuel

  eligible bioenergy fuel means fuel that is combusted in the operation of a system described in paragraph (a) of the definition waste biomass electricity generation equipment and that is 

  • (a) specified waste material; or

  • (b) fuel that has been produced using equipment that is

    • (i) part of the system, and

    • (ii) described in subparagraph (b)(v) or (vi) of the definition waste biomass electricity generation equipment. (carburants admissibles pour la bioénergie)

  gaseous biofuel

  gaseous biofuel has the same meaning as in subsection 1104(13) of the Income Tax Regulations. (biocarburants gazeux)

  liquid biofuel

  liquid biofuel has the same meaning as in subsection 1104(13) of the Income Tax Regulations. (biocarburants liquides)

  solid biofuel

  solid biofuel has the same meaning as in subsection 1104(13) of the Income Tax Regulations. (biocarburants solides)

  specified waste material

  specified waste material has the same meaning as in subsection 1104(13) of the Income Tax Regulations. (déchets déterminés)

  spent pulping liquor

  spent pulping liquor has the same meaning as in subsection 1104(13) of the Income Tax Regulations. (liqueur résiduaire)

  waste biomass electricity generation equipment

  waste biomass electricity generation equipment means property that  

  • (a) is part of a system that meets the following conditions

    • (i) the system is used solely for the purpose of generating electrical energy, or a combination of electrical energy and heat energy, determined without reference to the recovery of chemicals from spent pulping liquor,

    • (ii) the system consumes material all or substantially all of the energy content (expressed as the higher heating value of the material) of which is specified waste material, as determined on an annual basis,

    • (iii) the system is on a single site, or on contiguous sites or adjacent sites that function as a single integrated site, at which the activities described in subparagraphs (i) and (ii) are carried out, and

    • (iv) the system meets the following heat rate on an annual basis

      A ≥ (2 × B + C) ÷ (D + E ÷ F)

      where

      A

      is 13,000 BTU per kilowatt-hour,

      B

      is the energy content of fossil fuel (expressed as the higher heating value of the fuel) consumed by the system in BTU,

      C

      is the energy content of eligible bioenergy fuel or any other fuel other than fossil fuel (expressed as the higher heating value of the fuel) consumed by the system in BTU,

      D

      is the gross electrical energy produced by the system in kilowatt-hours,

      E

      is the net useful energy in the form of heat exported from the system to a thermal host in BTU, and

      F

      is 3,412 BTU per kilowatt-hour;

  • (b) is

    • (i) electrical generating equipment,

    • (ii) heat generating equipment used primarily for the purpose of producing heat energy to operate equipment described in subparagraph (i), determined without reference to the recovery of chemicals from spent pulping liquor,

    • (iii) equipment that generates both electrical and heat energy,

    • (iv) heat recovery equipment used primarily for the purpose of conserving energy, or reducing the requirement to acquire energy, by extracting for reuse thermal waste that is generated by equipment described in this paragraph,

    • (v) equipment that

      • (A) is used to produce solid biofuel, liquid biofuel or gaseous biofuel used solely to operate equipment described in any of subparagraphs (i) to (iii) or (vi), from material all or substantially all of the energy content (expressed as the higher heating value of the material) of which is specified waste material, as determined on an annual basis, and

      • (B) is described in any of subparagraphs (d)(xi), (xiii), (xvi) or (xx) of Class 43.1 in Schedule II to the Income Tax Regulations,

    • (vi) equipment that is used to upgrade the combustibility of specified waste material used all or substantially all to operate equipment described in this subparagraph or in any of subparagraphs (i) to (iii) or (v),

    • (vii) equipment for the distribution of heat energy within the system,

    • (viii) equipment that is physically and functionally integrated with equipment described in any of subparagraphs (i) to (vii) and that is ancillary equipment (such as control equipment) used primarily to support the functioning of equipment described in any of subparagraphs (i) to (vii), or

    • (ix) described in any of subparagraphs (i) to (viii) that is incorporated into a system that would not otherwise be described in paragraph (a) if the incorporation causes the system to satisfy the description in paragraph (a); and

  • (c) is not

    • (i) a building or other structure,

    • (ii) transmission equipment,

    • (iii) distribution equipment,

    • (iv) equipment used to export heat energy from the system,

    • (v) equipment for the storage of feedstock or fuel,

    • (vi) pollution abatement equipment,

    • (vii) a vehicle, or

    • (viii) property described in Class 57 or 58 of Schedule II to the Income Tax Regulations. (matériel générateur d'électricité à partir de déchets de biomasse)

  waste biomass heat generation equipment

  waste biomass heat generation equipment means property that 

  • (a) is part of a system that meets the following conditions

    • (i) the system is used solely for the purpose of generating heat energy,

    • (ii) the system consumes material all or substantially all of the energy content (expressed as the higher heating value of the material) of which is specified waste material, other than spent pulping liquor, as determined on an annual basis, and

    • (iii) the system is on a single site, or on contiguous sites or adjacent sites that function as a single integrated site, at which the activities described in subparagraphs (i) and (ii) are carried out;

  • (b) is

    • (i) heat generating equipment,

    • (ii) equipment that

      • (A) is used to produce solid biofuel, liquid biofuel or gaseous biofuel used solely to operate equipment described in any of subparagraphs (i) or (iii), from material all or substantially all of the energy content (expressed as the higher heating value of the material) of which is specified waste material, other than spent pulping liquor, as determined on an annual basis, and

      • (B) is described in any of subparagraphs (d)(xi), (xiii), (xvi) or (xx) of Class 43.1 in Schedule II to the Income Tax Regulations,

    • (iii) equipment that is used to upgrade the combustibility of specified waste material, other than spent pulping liquor, used all or substantially all to operate equipment described in this subparagraph or in subparagraph (i) or (ii),

    • (iv) equipment for the distribution of heat energy within the system,

    • (v) equipment that is physically and functionally integrated with equipment described in any of subparagraphs (i) to (iv) and that is ancillary equipment (such as control equipment) used primarily to support the functioning of equipment described in subparagraphs (i) to (iv), or

    • (vi) described in any of subparagraphs (i) to (v) that is incorporated into a system that would not otherwise be described in paragraph (a) if the incorporation causes the system to satisfy the description in paragraph (a); and

  • (c) is not

    • (i) equipment used for the purpose of producing heat energy to operate electrical generating equipment,

    • (ii) a building or other structure,

    • (iii) equipment used to export heat energy from the system,

    • (iv) equipment for the storage of feedstock or fuel,

    • (v) pollution abatement equipment,

    • (vi) a vehicle, or

    • (vii) property described in any of Class 17, 57 or 58 of Schedule II to the Income Tax Regulations. (matériel générateur de chaleur à partir de déchets de biomasse)

• (10) Section 127.45 of the Act is amended by adding the following after subsection (1):

  • Marginal note:Interpretive rule — small nuclear energy property

    (1.1) For the purpose of this section, where a qualifying taxpayer has a leasehold interest in a small nuclear energy property

    • (a) subject to subsection (4), the taxpayer is deemed to acquire the property when it acquires the leasehold interest in the property;

    • (b) the capital cost of the leasehold interest in the property to the taxpayer is deemed to be its capital cost of the property; and

    • (c) the property is deemed to be disposed of by the taxpayer when it ceases to hold the leasehold interest in the property for proceeds of disposition equal to the fair market value of the property at the time it ceases to hold the leasehold interest.

• (11) Subsection 127.45(3) of the Act is replaced by the following:

  • Marginal note:Time limit for application

    (3) A payment on account of tax payable shall not be deemed to be paid under subsection (2) if the taxpayer does not file with the Minister the prescribed form containing prescribed information referred to in subsection (2) in respect of the amount on or before the later of December 31, 2026 and the day that is one year after the taxpayer's filing-due date for the year and, if the prescribed form is filed after the taxpayer's filing-due date for the year, no payment by the taxpayer is deemed to arise under that subsection until the prescribed form containing the prescribed information has been filed with the Minister.

• (12) Paragraph 127.45(5)(a) of the Act is replaced by the following:

  • (a) not include any amount

    • (i) in respect of which an amount was previously deducted under this section by any person,

    • (ii) in respect of which any other clean economy tax credit (as defined in subsection 127.47(1)) was deducted by any person,

    • (ii.1) in respect of any part of the capital cost of a property if a CCUS tax credit (as defined in subsection 127.44(1)) or a clean hydrogen tax credit (as defined in subsection 127.48(1)) was deducted by any person in respect of that property,

    • (iii) that has, by virtue of section 21, been added to the cost of a property, or

    • (iv) that is in respect of an expenditure incurred for a preliminary work activity;

• (13) Section 127.45 of the Act is amended by adding the following after subsection (5):

  • Marginal note:Environmental compliance

    (5.1) A property that would otherwise be clean technology property of a qualifying taxpayer is deemed not to be a clean technology property of the taxpayer if, at the time the property becomes available for use by the taxpayer, there is substantial non-compliance by the taxpayer with the requirements of any environmental law, by-law or regulation of Canada, a province, a municipality, or a municipal or public body performing a function of government in Canada that is applicable in respect of the property.

  • Marginal note:Compliance — reasonable efforts

    (5.2) The following rules apply in respect of a qualifying taxpayer's property described in subparagraph (d)(viii) of the definition clean technology property in subsection (1):

    • (a) where the property is temporarily operated in a manner that is a non-clean technology use solely because of a deficiency, failing or shutdown of the system of which it is a part, and that deficiency, failing or shutdown is beyond the control of the taxpayer, the property is deemed, for the purposes of subsections (11), (12), (16) and (17), not to be operated in a manner that is a non-clean technology use during the period of the deficiency, failing or shutdown, if the taxpayer makes all reasonable efforts to rectify the circumstances within a reasonable time; and

    • (b) for the purpose of paragraph (a), the system referred to in that paragraph may include property of another person or partnership if

      • (i) the property would reasonably be considered to be part of the system if the property were owned by the taxpayer,

      • (ii) the property utilizes electrical energy or heat energy obtained from the system,

      • (iii) the operation of the property is necessary for the system to avoid operation in a manner that is a non-clean technology use, and

      • (iv) at the time the system first became operational, the deficiency, failing or shutdown in the operation of the property could not reasonably have been anticipated to occur within five calendar years after that time.

• (14) Subsection 127.45(6) of the Act is replaced by the following:

  • Marginal note:Deemed deduction

    (6) For the purposes of this section, paragraph 12(1)(t), subsection 13(7.1), the description of I in the definition undepreciated capital cost in subsection 13(21) and subsection 53(2) and sections 127.44, 127.48, 127.49, 127.491 and 129, the amount deemed under subsection (2) to have been paid by a taxpayer for a taxation year is deemed to have been deducted from the taxpayer's tax otherwise payable under this Part for the year.

• (15) Subsection 127.45(7) of the Act is replaced by the following:

  • Marginal note:Repayment of assistance

    (7) Where a taxpayer has, in a particular taxation year, repaid (or has not received and can no longer reasonably be expected to receive) an amount of government assistance or non-government assistance that was applied to reduce the cost of a particular property under paragraph (5)(b.1) for a preceding taxation year, the amount repaid (or no longer expected to be received) is to be added to the cost to the taxpayer of a separate clean technology property that is deemed to be acquired in the particular year for the purposes of this section, provided that a transaction or event described in paragraph (11)(c) has not occurred in respect of the particular property.

• (16) Subsection 127.45(9) of the Act is replaced by the following:

  • Marginal note:Unpaid amounts

    (9) For the purposes of this section, where any part of the capital cost of a taxpayer's particular clean technology property is unpaid on the day that is 180 days after the end of the taxation year in which a deduction in respect of a clean technology investment tax credit would otherwise be available in respect of the particular property, such amount is to be

    • (a) excluded from the capital cost of the particular property in the year; and

    • (b) added to the capital cost of a separate clean technology property that is deemed to be acquired at the time the amount is paid, provided that a transaction or event described in paragraph (11)(c) has not occurred in respect of the particular property.

• (17) Section 127.45 of the Act is amended by adding the following after subsection (18):

  • Marginal note:Election by member to pay tax

    (18.1) A qualifying taxpayer that is a member of a partnership during a fiscal period of the partnership may elect, in prescribed form and manner, to add to its tax payable under this Part for its taxation year that includes the end of the fiscal period the total amount of tax determined for that fiscal period because of subsections (16) and (17) in respect of the partnership.

  • Marginal note:Joint and several, or solidary, liability

    (18.2) Each current or former member of a partnership is jointly and severally, or solidarily, liable for any portion of the amount of tax — determined because of subsections (16) and (17) in respect of the partnership for a fiscal period — that is not added to the tax payable

    • (a) of a qualifying taxpayer under subsection (17); or

    • (b) of a qualifying taxpayer because of subsection (18.1) and paid by the qualifying taxpayer by its filing-due date for its taxation year that includes the end of the fiscal period.

  • Marginal note:Former member liability

    (18.3) If a particular taxpayer was, at the time that an amount is determined because of subsections (16) and (17) in respect of a property of the partnership for a taxation year, no longer a member of the partnership, the particular taxpayer's liability for tax because of subsection (18.2) is limited to the total of all amounts each of which is an amount determined for the particular taxpayer under subsection (2) in respect of the property because of its membership in the partnership.

• (18) Subsections (1) to (3), (6) to (8), (10) to (12) and (15) to (17) are deemed to have come into force on March 28, 2023.

• (19) Subsections (4), (9) and (13) are deemed to have come into force on November 21, 2023.

• (20) Subsection (5) is deemed to have come into force on the day on which the notice of a ways and means motion in respect of this section is tabled in the House of Commons.

• (21) Subsection (14) is deemed to have come into force on April 16, 2024.

• 53 (1) The definitions regular tax credit rate and specified tax credit in subsection 127.46(1) of the Act are replaced by the following:

  regular tax credit rate

  regular tax credit rate means the specified percentage (as defined in subsections 127.44(1), 127.45(1), 127.48(1) and 127.491(1), as the case may be). (taux du crédit d'impôt régulier)

  specified tax credit

  specified tax credit means the CCUS tax credit under subsection 127.44(1), the clean technology investment tax credit under subsection 127.45(1), the clean hydrogen tax credit under subsection 127.48(1) and the clean electricity investment tax credit under subsection 127.491(1). (crédit d'impôt déterminé)

• (2) Subsection 127.46(2) of the Act is replaced by the following:

  • Marginal note:Reduced or regular rate

    (2) Despite sections 127.44, 127.45, 127.48 and 127.491, the applicable rate for each specified tax credit of an incentive claimant is the reduced tax credit rate unless the incentive claimant elects in prescribed form and manner to meet the prevailing wage requirements under subsection (3) and the apprenticeship requirements under subsection (5) for each installation taxation year in respect of the specified tax credit.

• (3) Subsection 127.46(15) of the Act is replaced by the following:

  • Marginal note:Exception

    (15) This section does not apply to the preparation or installation of clean technology property as defined in subsection 127.45(1) that is described in subparagraph (d)(i) of Class 43.1 in Schedule II to the Income Tax Regulations or in Class 56 in Schedule II to the Income Tax Regulations.

• (4) Subsections (1) and (2) are deemed to have come into force on April 16, 2024.

• (5) Subsection (3) is deemed to have come into force on November 28, 2023 and applies to specified property prepared or installed on or after that date.

• 54 (1) The definition clean economy allocation provision in subsection 127.47(1) of the Act is amended by striking out "or" at the end of paragraph (c), by adding "or" at the end of paragraph (d) and by adding the following after paragraph (d):

  • (e) subsection 127.491(12). (disposition d'allocation pour l'économie propre)

• (2) The definition clean economy expenditure in subsection 127.47(1) of the Act is amended by striking out "or" at the end of paragraph (c), by adding "or" at the end of paragraph (d) and by adding the following after paragraph (d):

  • (e) the capital cost of clean electricity property as determined under section 127.491. (dépense pour l'économie propre)

• (3) The definition clean economy provision in subsection 127.47(1) of the Act is amended by striking out "or" at the end of paragraph (e), by adding "or" at the end of paragraph (f) and by adding the following after paragraph (f):

  • (g) section 127.491. (disposition pour l'économie propre)

• (4) The definition clean economy tax credit in subsection 127.47(1) of the Act is amended by striking out "or" at the end of paragraph (c), by adding "or" at the end of paragraph (d) and by adding the following after paragraph (d):

  • (e) a clean electricity investment tax credit (as defined in subsection 127.491(1)). (crédit d'impôt pour l'économie propre)

• (5) Section 127.47 of the Act is amended by adding the following after subsection (4):

  • Marginal note:Multiple tax credits

    (4.1) If the cost of a particular property of a partnership is eligible for more than one clean economy tax credit, the partnership may allocate each of those clean economy tax credits to the members of the partnership in accordance with this section and the clean economy allocation provisions, except that no member of the partnership is entitled to more than one clean economy tax credit in respect of that property unless the tax credits are the CCUS tax credit (as defined in subsection 127.44(1)) and the clean hydrogen tax credit (as defined in subsection 127.48(1)) to the extent provided under sections 127.44 and 127.48.

• (6) Subsections (1) to (4) are deemed to have come into force on April 16, 2024.

• (7) Subsection (5) is deemed to have come into force on March 28, 2023.

• 55 (1) The definition non-hydrogen or ammonia use in subsection 127.48(1) of the Act is replaced by the following:

  non-hydrogen or ammonia use

  non-hydrogen or ammonia use means a use of a particular property at a particular time that would, if the property were acquired at that time, result in the property not being an eligible clean hydrogen property, determined without reference to paragraph (b) of that definition. (utilisation autre que pour l'hydrogène ou l'ammoniac)

• (2) Subparagraph (c)(vi) of the definition eligible clean hydrogen property in subsection 127.48(1) of the Act is replaced by the following:

  • (vi) that is incorporated into another property that would not otherwise be described in subparagraphs (i) to (v) if the incorporation causes the other property to satisfy the description in any of subparagraphs (i) to (v). (bien admissible pour l'hydrogène propre)

• (3) Paragraph (e) of the definition preliminary clean hydrogen work activity in subsection 127.48(1) of the Act is replaced by the following:

  • (e) clearing or excavating land, except excavation directly related to the installation of eligible clean hydrogen property. (travaux préliminaires pour l'hydrogène propre)

• (4) Subsection 127.48(3) of the Act is replaced by the following:

  • Marginal note:Deemed deduction

    (3) For the purposes of this section, paragraph 12(1)(t), subsection 13(7.1), the description of I in the definition undepreciated capital cost in subsection 13(21), subsection 53(2) and sections 127.44, 127.45, 127.49, 127.491 and 129, the amount deemed under subsection (2) to have been paid by a taxpayer for a taxation year is deemed to have been deducted from the taxpayer's tax otherwise payable under this Part for the year.

• (5) Subsection 127.48(4) of the Act is replaced by the following:

  • Marginal note:Time limit for application

    (4) A payment on account of tax payable shall not be deemed to be paid under subsection (2) if the taxpayer does not file with the Minister the prescribed form containing prescribed information referred to in subsection (2) in respect of the amount on or before the later of December 31, 2026 and the day that is one year after the taxpayer's filing-due date for the year and, if the prescribed form is filed after the taxpayer's filing-due date for the year, no payment by the taxpayer is deemed to arise under that subsection until the prescribed form containing prescribed information has been filed with the Minister.

• (6) Paragraph 127.48(6)(b) of the Act is replaced by the following:

  • (b) subject to paragraph (j), in applying the Fuel LCA Model, an assessment of emissions from the production of hydrogen by the project and upstream emissions from the production of inputs to the hydrogen-production process shall be taken into account;

• (7) Paragraph 127.48(6)(d) of the Act is replaced by the following:

  • (d) if the taxpayer produces hydrogen from eligible hydrocarbons,

    • (i) any captured carbon that is subject to an ineligible use is deemed not to be captured, and

    • (ii) any captured carbon that is subject to an eligible use (as defined in subsection 127.44(1)) is deemed to be permanently stored;

• (8) The portion of paragraph 127.48(6)(e) of the Act before subparagraph (i) is replaced by the following:

  • (e) if, in connection with hydrogen production, the taxpayer generates or purchases, or proposes to generate or purchase, electricity that is

• (9) Clause 127.48(6)(e)(i)(B) of the Act is replaced by the following:

  • (B) on-site generation equipment that is used solely to convert any one or a combination of hydrogen, heat described in subparagraph (i)(i) or (ii) or eligible hydrocarbons (with carbon dioxide captured using a CCUS process) into electricity that supports the production of hydrogen from eligible hydrocarbons, the contribution of the electricity to carbon intensity is to be modelled as part of the project,

• (10) Subsection 127.48(6) of the Act is amended by striking out "and" at the end of paragraph (h) and by replacing paragraph (i) with the following:

  • (i) if, in connection with hydrogen production or electricity production in support of hydrogen production, the taxpayer uses heat energy

    • (i) recovered from hydrogen production, recovered from electricity production by the taxpayer in support of hydrogen production or produced by the taxpayer from the combustion of hydrogen or eligible hydrocarbons (with carbon dioxide captured using a CCUS process), the contribution of the heat to carbon intensity is to be modelled as part of the project,

    • (ii) recovered from a non-hydrogen production process of the taxpayer, or purchased from a vendor that produced the heat from eligible hydrocarbons or recovered the waste heat from a production process, the contribution of the heat to carbon intensity is to correspond with the input carbon intensity of purchased steam in the Fuel LCA Model, and

    • (iii) from a source other than as described in subparagraph (i) or (ii), the carbon intensity of the project is deemed to be greater than 4.5;

  • (j) the contribution to carbon intensity of the following may be disregarded:

    • (i) delivering, collecting, recovering, treating or recirculating water, and

    • (ii) energy used to compress hydrogen beyond 30 bar;

  • (k) emissions related to the production of the following substances or types of energy produced in conjunction with hydrogen shall be attributed to hydrogen production:

    • (i) off-gas (including tail gas and other fuel gas),

    • (ii) oxygen,

    • (iii) nitrogen, if the nitrogen is not used by the taxpayer in another production process or sold for commercial use, and

    • (iv) heat from hydrogen production;

  • (l) emissions related to heat produced in conjunction with electricity production by the taxpayer in support of hydrogen production shall be attributed to hydrogen production, if the heat is not used by the taxpayer in another production process or sold for commercial use;

  • (m) emissions associated with energy used in the purification of hydrogen shall be attributed to hydrogen production; and

  • (n) the Clean Hydrogen Investment Tax Credit – Carbon Intensity Modelling Guidance Document published by the Government of Canada is to apply conclusively with respect to the calculation of carbon intensity, except as otherwise required under this section.

• (11) The portion of paragraph 127.48(10)(a) of the Act before subparagraph (iii) is replaced by the following:

  • (a) not include any amount

    • (i) in respect of which an amount was previously deducted under this section by any person,

    • (ii) in respect of which any other clean economy tax credit (as defined in subsection 127.47(1)) was deducted by any person, or

• (12) Subsection 127.48(11) of the Act is replaced by the following:

  • Marginal note:Repayment of assistance

    (11) Where a taxpayer has, in a particular taxation year, repaid (or has not received and can no longer reasonably be expected to receive) an amount of government assistance or non-government assistance that was applied to reduce the capital cost of a particular eligible clean hydrogen property under paragraph (10)(c) for a preceding taxation year, the amount repaid (or no longer expected to be received) is to be added to the cost to the taxpayer of a separate eligible clean hydrogen property that is deemed to be acquired in the particular year for the purposes of this section, provided that a transaction or event described in paragraph (21)(c) has not occurred in respect of the particular property.

• (13) Subsection 127.48(13) of the Act is replaced by the following:

  • Marginal note:Unpaid amounts

    (13) For the purposes of this section, where any part of the capital cost of a taxpayer's particular eligible clean hydrogen property is unpaid on the day that is 180 days after the end of the taxation year in which a deduction in respect of a clean hydrogen tax credit would otherwise be available in respect of the particular property, such amount is to be

    • (a) excluded from the capital cost of the particular property in the year; and

    • (b) added to the capital cost of a separate eligible clean hydrogen property that is deemed to be acquired by the taxpayer at the time the amount is paid, provided that a transaction or event described in paragraph (21)(c) has not occurred in respect of the particular property.

  • Marginal note:Property deemed in respect of qualified project

    (13.1) A property is deemed to have been acquired in respect of a qualified clean hydrogen project if

    • (a) the property was acquired in respect of a clean hydrogen project that was not a qualified clean hydrogen project because the Minister of Natural Resources was not accepting the filing of clean hydrogen project plans during the taxation year in which the property was acquired; and

    • (b) in a subsequent taxation year, the project becomes a qualified clean hydrogen project.

• (14) Subsection 127.48(15) of the Act is replaced by the following:

  • Marginal note:Annual information reporting requirement

    (15) If a clean hydrogen tax credit was deducted in any taxation year by a taxpayer in respect of a qualified clean hydrogen project, the taxpayer shall file, with its return of income for each taxation year that begins or ends during the compliance period in respect of the project, a prescribed form containing prescribed information in respect of the operations of the project.

• (15) Section 127.48 of the Act is amended by adding the following after subsection (16):

  • Marginal note:Shared filing

    (16.1) If more than one person is required by this section to file any documentation or information with the Minister or the Minister of Natural Resources in respect of a clean hydrogen project (including, but not limited to, a revised clean hydrogen project plan, a form described in subsection (15) or a compliance report described in subsection (16)), the filing with full and accurate disclosure by any one of such persons of the documentation or information is deemed to have been made by each person to whom the relevant requirement applies.

• (16) Subsection 127.48(25) of the Act is replaced by the following:

  • Marginal note:Recovery and recapture — partnerships

    (25) Subject to section 127.47, if subsection (12) has at any time applied to add an amount in computing the clean hydrogen tax credit of a current or former member of a partnership, subsections (18) to (23) apply to determine amounts in respect of the partnership as if the partnership was a taxable Canadian corporation, its fiscal period were its taxation year and it had deducted all of the clean hydrogen tax credits that were previously added in computing the clean hydrogen tax credit of any member of the partnership because of the application of subsection (12) in respect of its partnership interest.

• (17) Subsections 127.48(27) and (28) of the Act are replaced by the following:

  • Marginal note:Election by member

    (27) A taxable Canadian corporation that is a member of a partnership during a fiscal period of the partnership may elect, in prescribed form and manner, to add to its tax payable under this Part for its taxation year that includes the end of the fiscal period the total amount of tax determined for that fiscal period because of subsection (25) in respect of the partnership.

  • Marginal note:Joint and several, or solidary, liability

    (28) Each current or former member of a partnership is jointly and severally, or solidarily, liable for any portion of the amount of tax — determined because of subsection (25) in respect of the partnership for a fiscal period — that is not added to the tax payable

    • (a) of a qualifying taxpayer under subsection (26); or

    • (b) of a taxable Canadian corporation because of subsection (27) and paid by the corporation by its filing-due date for its taxation year that includes the end of the fiscal period.

  • Marginal note:Former member liability

    (28.1) If a particular taxpayer was, at the time that an amount is determined because of subsection (25) in respect of the partnership for a taxation year, no longer a member of the partnership, the particular taxpayer's liability for tax because of subsection (28) is limited to the total of all amounts each of which is an amount determined for the particular taxpayer under subsection (2) because of its membership in the partnership.

• (18) Subsections (1) to (3) and (5) to (17) are deemed to have come into force on March 28, 2023.

• (19) Subsection (4) is deemed to have come into force on April 16, 2024.

• 56 (1) The definition CTM use in subsection 127.49(1) of the Act is replaced by the following:

  CTM use

  CTM use means the use of a property all or substantially all in

  • (a) activities described in paragraph (a) or (c) of the definition qualified zero emission technology manufacturing activities in section 5202 of the Income Tax Regulations;

  • (b) activities described in paragraph (a) or (b) of the definition qualifying mineral activity if the property is used to produce primarily qualifying materials, determined based on the value of all commercial outputs in accordance with subsection (2.2); or

  • (c) activities described in any of paragraphs (c) to (f) of the definition qualifying mineral activity if the property is used to produce all or substantially all qualifying materials, determined based on the value of all commercial outputs in accordance with subsection (2.2). (utilisation pour la FTP)

• (2) Paragraph (d) of the definition CTM property in subsection 127.49(1) of the Act is amended by striking out "or" at the end of subparagraph (v), by adding "or" at the end of subparagraph (vi) and by adding the following after subparagraph (vi):

  • (vii) is incorporated into another property described in any of subparagraphs (i) to (vi), as part of a refurbishment of the other property provided that on completion of the refurbishment the other property is still described in any of subparagraphs (i) to (vi). (bien de FTP)

• (3) The definition qualifying material in subsection 127.49(1) of the Act is amended by striking out "and" at the end of paragraph (e) and by adding the following after paragraph (f):

  • (g) antimony;

  • (h) gallium;

  • (i) germanium;

  • (j) indium; and

  • (k) scandium. (matériau admissible)

• (4) Paragraphs (b) to (e) of the definition qualifying mineral activity in subsection 127.49(1) of the Act are replaced by the following:

  • (b) a specified mineral processing activity that is performed at a mine site or well site;

  • (c) a specified mineral processing activity that is performed at a location other than a location described in paragraph (b);

  • (d) a recycling activity that is

    • (i) sorting, disassembly or shredding of a recyclable material, or

    • (ii) a material processing activity substantially similar to a specified mineral processing activity;

  • (e) a synthetic graphite activity that is

    • (i) performed during or after the graphitization stage, and

    • (ii) a material processing activity substantially similar to a specified mineral processing activity; or

  • (f) spheronization of graphite or coating of spheronized graphite. (activité minière admissible)

• (5) Paragraphs (b) to (f) of the definition specified percentage in subsection 127.49(1) of the Act are replaced by the following:

  • (b) subject to paragraph (a)

    • (i) after December 31, 2023 and before January 1, 2032, 30%,

    • (ii) after December 31, 2031 and before January 1, 2033, 20%,

    • (iii) after December 31, 2032 and before January 1, 2034, 10%, and

    • (iv) after December 31, 2033 and before January 1, 2035, 5%; and

  • (c) after December 31, 2034, nil. (pourcentage déterminé)

• (6) Subsection 127.49(1) of the Act is amended by adding the following in alphabetical order:

  independent engineer or geoscientist

  independent engineer or geoscientist means an individual who 

  • (a) is a qualified professional engineer or professional geoscientist as defined in subsection 127(9); and

  • (b) is at all times at arm's length with, independent of, and not employed by, each taxpayer claiming a related CTM investment tax credit. (ingénieur ou géoscientifique indépendant)

  refurbishment

  refurbishment means significant alterations, renovations, improvements or additions to a property to substantially 

  • (a) extend its useful life;

  • (b) increase its capacity; or

  • (c) improve its efficiency. (remise en état)

  safe harbour price

  safe harbour price of a commercial output means the five-year historical average spot price, determined at the end of the taxation year of a taxpayer in which a CTM investment tax credit is deducted in respect of a CTM property, of that output calculated 

  • (a) using prices from a recognized commodities exchange; or

  • (b) if prices referred to in paragraph (a) are not available in respect of the output, in accordance with normal and accepted commercial practices in the industry. (prix au titre de la règle d'exonération)

  safe harbour price method

  safe harbour price method, in respect of a CTM property of a taxpayer, means the determination, on an annual basis, of the value of all commercial outputs from the property based on

  • (a) the safe harbour price of the expected commercial outputs from the property if the year for which the determination is made is prior to a year in which the property was used by the taxpayer in commercial production; and

  • (b) the safe harbour price of the actual commercial outputs from the property in a year in which the property was used by the taxpayer in commercial production. (méthode de détermination du prix au titre de la règle d'exonération)

  specified fair market value method

  specified fair market value method, in respect of a CTM property, means the determination, on an annual basis, of the value of all the commercial outputs from the property based on

  • (a) the fair market value, determined at the end of the relevant taxation year, of the expected commercial outputs from the property if the year for which the determination is made is prior to a year in which the property was used by the taxpayer in commercial production; and

  • (b) the fair market value, determined at the end of the relevant taxation year, of the actual commercial outputs from the property in a year in which the property was used by the taxpayer in commercial production. (méthode de détermination de la juste valeur marchande déterminée)

  specified mineral processing activity

  specified mineral processing activity means a mineral processing activity (including crushing, grinding, milling, separation, sieving, screening, froth floatation, leaching, recrystallization, precipitation, drying, evaporation, heating, calcinating, roasting, smelting, casting of ingots, refining, purification, distillation, electrodeposition and surface roughening of electrodeposited foil) that occurs prior to or as part of a process intended to 

  • (a) increase the purity of at least one qualifying material; or

  • (b) produce a material with non-trace amounts of a single qualifying material, and without non-trace amounts of any elements other than permitted elements. (activité de traitement des minéraux déterminée)

• (7) Subsection 127.49(3) of the Act is replaced by the following:

  • Marginal note:Certification requirement

    (2.1) Notwithstanding subsection (2), a CTM investment tax credit in respect of property used, or to be used, by the taxpayer or by a partnership of which the taxpayer is a member, in any activity described in paragraph (a) or (b) of the definition qualifying mineral activity in subsection (1), is deemed to be nil unless a taxpayer files with the Minister, together with the form and information described in subsection (2), a certification by an independent engineer or geoscientist in respect of the taxpayer in the prescribed form attesting that the property is being used, or is to be used,

    • (a) at a particular mine site or well site of the taxpayer or of a partnership of which the taxpayer is a member, as the case may be; and

    • (b) in accordance with a plan that primarily targets qualifying materials, determined based on the value of all commercial outputs expected to be produced in accordance with subsection (2.2).

  • Marginal note:Valuation of qualifying mineral activity outputs

    (2.2) In the prescribed form referred to in subsection (2) that is filed by a taxpayer for a taxation year, the taxpayer must elect, in respect of each CTM property of the taxpayer for which the taxpayer claims a CTM investment tax credit for that year, that the determination of the value of all commercial outputs from that property is to be based on either

    • (a) the specified fair market value method, or

    • (b) the safe harbour price method.

  • Marginal note:Time limit for application

    (3) A payment on account of tax payable shall not be deemed to be paid under subsection (2) if the taxpayer does not file with the Minister the prescribed form containing prescribed information referred to in subsection (2) in respect of the amount on or before the later of December 31, 2026 and the day that is one year after the taxpayer's filing-due date for the year and, if the prescribed form is filed after the taxpayer's filing-due date for the year, no payment by the taxpayer is deemed to arise under that subsection until the prescribed form containing the prescribed information has been filed with the Minister.

• (8) The portion of paragraph 127.49(5)(a) of the Act before subparagraph (iii) is replaced by the following:

  • (a) not include any amount

    • (i) in respect of which an amount was previously deducted under this section by any person,

    • (ii) in respect of which any other clean economy tax credit (as defined in subsection 127.47(1)) was deducted by any person,

    • (ii.1) in respect of any part of the capital cost of a property if a CCUS tax credit (as defined in subsection 127.44(1)) or a clean hydrogen tax credit (as defined in subsection 127.48(1)) was deducted by any person in respect of that property, or

• (9) Subsection 127.49(6) of the Act is replaced by the following:

  • Marginal note:Deemed deduction

    (6) For the purposes of this section, paragraph 12(1)(t), subsection 13(7.1), the description of I in the definition undepreciated capital cost in subsection 13(21) and subsection 53(2) and sections 127.44, 127.45, 127.48, 127.491 and 129, the amount deemed under subsection (2) to have been paid by a taxpayer for a taxation year is deemed to have been deducted from the taxpayer's tax otherwise payable under this Part for the year.

• (10) Subsection 127.49(7) of the Act is replaced by the following:

  • Marginal note:Repayment of assistance

    (7) Where a taxpayer has, in a particular taxation year, repaid (or has not received and can no longer reasonably be expected to receive) an amount of government assistance or non-government assistance that was applied to reduce the cost of a particular property under paragraph (5)(c) for a preceding taxation year, the amount repaid (or no longer expected to be received) is to be added to the cost to the taxpayer of a separate CTM property that is deemed to be acquired in the particular year for the purposes of this section, provided that a transaction or event described in paragraph (11)(c) has not occurred in respect of the particular property.

• (11) Subsection 127.49(9) of the Act is replaced by the following:

  • Marginal note:Unpaid amounts

    (9) For the purposes of this section, where any part of the capital cost of a taxpayer's particular CTM property is unpaid on the day that is 180 days after the end of the taxation year in which a deduction in respect of a CTM investment tax credit would otherwise be available in respect of the particular property, such amount is to be

    • (a) excluded from the capital cost of the particular property in the year; and

    • (b) added to the capital cost of a separate CTM property that is deemed to be acquired at the time the amount is paid, provided that a transaction or event described in paragraph (11)(c) has not occurred in respect of the particular property.

• (12) Section 127.49 of the Act is amended by adding the following after subsection (18):

  • Marginal note:Election by member to pay tax

    (18.1) A qualifying taxpayer that is a member of a partnership during a fiscal period of the partnership may elect, in prescribed form and manner, to add to its tax payable under this Part for its taxation year that includes the end of the fiscal period the total amount of tax determined for that fiscal period because of subsections (16) and (17) in respect of the partnership.

  • Marginal note:Joint and several, or solidary, liability

    (18.2) Each current or former member of a partnership is jointly and severally, or solidarily, liable for any portion of the amount of tax — determined because of subsections (16) and (17) in respect of the partnership for a fiscal period — that is not added to the tax payable

    • (a) of a qualifying taxpayer under subsection (17); or

    • (b) of a qualifying taxpayer because of subsection (18.1) and paid by the qualifying taxpayer by its filing-due date for its taxation year that includes the end of the fiscal period.

  • Marginal note:Former member liability

    (18.3) If a particular taxpayer was, at the time that an amount is determined because of subsections (16) and (17) in respect of a property of the partnership for a taxation year, no longer a member of the partnership, the particular taxpayer's liability for tax because of subsection (18.2) is limited to the total of all amounts each of which is an amount determined for the particular taxpayer under subsection (2) in respect of the property because of its membership in the partnership.

• (13) Subsections (1), (2), (4) to (8) and (10) to (12) are deemed to have come into force on January 1, 2024.

• (14) Subsection (3) applies in respect of property that is acquired and becomes available for use on or after November 4, 2025.

• (15) Subsection (9) is deemed to have come into force on April 16, 2024.

• 57 (1) The Act is amended by adding the following after section 127.49:

  Marginal note:Definitions

  • 127.491 (1) The following definitions apply in this section.

    actual emission intensity

    actual emission intensity means the emission intensity of a specified natural gas energy system of a qualifying entity, based on the actual carbon dioxide emissions from the production of electrical energy by the system. (intensité des émissions réelle)

    average actual emission intensity

    average actual emission intensity means, for the compliance period of a qualified natural gas energy system, the number determined by the formula  

    ((A × B) + (C × D) + (E × F) + (G × H) + (I × J)) ÷ K

    where

    A

    is the actual emission intensity of the system for the first operating year of the compliance period;

    B

    is the quantity, in gigawatt hours, of electrical energy produced by the system in the first operating year of the compliance period;

    C

    is the actual emission intensity of the system for the second operating year of the compliance period;

    D

    is the quantity, in gigawatt hours, of electrical energy produced by the system in the second operating year of the compliance period;

    E

    is the actual emission intensity of the system for the third operating year of the compliance period;

    F

    is the quantity, in gigawatt hours, of electrical energy produced by the system in the third operating year of the compliance period;

    G

    is the actual emission intensity of the system for the fourth operating year of the compliance period;

    H

    is the quantity, in gigawatt hours, of electrical energy produced by the system in the fourth operating year of the compliance period;

    I

    is the actual emission intensity of the system for the fifth operating year of the compliance period;

    J

    is the quantity, in gigawatt hours, of electrical energy produced by the system in the fifth operating year of the compliance period; and

    K

    is the total quantity, in gigawatt hours, of electrical energy produced by the system during the compliance period. (intensité des émissions réelle moyenne)

    clean electricity investment tax credit

    clean electricity investment tax credit of a qualifying entity for a taxation year means the total of all amounts each of which is

    • (a) the specified percentage of the capital cost to the qualifying entity of clean electricity property that is acquired by the entity in the year; or

    • (b) an amount required by subsection (12) to be added in computing the entity's clean electricity investment tax credit at the end of the year. (crédit d'impôt à l'investissement pour l'électricité propre)

    clean electricity property

    clean electricity property means property of a qualifying entity

    • (a) that is not part of a project the construction of which started before March 28, 2023 (and for this purpose, construction does not include obtaining permits or regulatory approval, conducting environmental assessments, community consultations or impact assessment studies or similar activities);

    • (b) that is situated in Canada (including property described in subparagraph (d)‍(v) or (xiv) of Class 43.‍1 in Schedule II to the Income Tax Regulations that is installed in the exclusive economic zone of Canada) and intended for use exclusively in Canada;

    • (c) that has not been used, or acquired for use or lease, for any purpose whatever before it was acquired by the entity;

    • (d) that, if it is to be leased by a qualifying entity to another person or partnership, is

      • (i) leased to a qualifying entity or a partnership all the members of which are qualifying entities, and

      • (ii) leased in the ordinary course of carrying on a business in Canada by the qualifying entity whose principal business is selling or servicing property of that type, or whose principal business is leasing property, lending money, purchasing conditional sales contracts, accounts receivable, bills of sale, chattel mortgages or hypothecary claims on movables, bills of exchange or other obligations representing all or part of the sale price of merchandise or services, or any combination thereof; and

    • (e) that is

      • (i) property that would be described in subparagraph (d)(ii) of Class 43.1 in Schedule II to the Income Tax Regulations, if that subparagraph were read without reference to its clause (A),

      • (ii) described in subparagraph (d)(v), (vi) or (xiv) of Class 43.1 in Schedule II to the Income Tax Regulations, but excluding a test wind turbine (within the meaning assigned by subsection 1219(3) of the Income Tax Regulations),

      • (iii) concentrated solar energy equipment, as defined in subsection 127.45(1), that is part of a system used solely for the purpose of generating electrical energy, exclusively from concentrated sunlight,

      • (iv) nuclear energy property,

      • (v) equipment that

        • (A) is part of a system that

          • (I) exports more electrical energy than heat energy on a net basis, as determined on an annual basis, and

          • (II) does not extract fossil fuels for sale,

        • (B) is used exclusively for the purpose of generating electrical energy, or a combination of electrical energy and heat energy, solely from geothermal energy, and

        • (C) is described in subparagraph (d)(vii) of Class 43.1 in Schedule II to the Income Tax Regulations,

      • (vi) waste biomass electricity generation equipment, as defined in subsection 127.45(1), that is part of a system that exports more electrical energy than heat energy on a net basis, as determined on an annual basis,

      • (vii) described in subparagraph (d)(xviii) or (xix) of Class 43.1 in Schedule II to the Income Tax Regulations, but excluding equipment that uses any fossil fuel in operation,

      • (viii) qualified natural gas energy equipment,

      • (ix) qualified interprovincial transmission equipment, or

      • (x) incorporated into another property described in any of subparagraphs (i) to (ix), as part of a refurbishment of the other property provided that on completion of the refurbishment the other property is still described in any of subparagraphs (i) to (ix). (bien pour l'électricité propre)

    compliance period

    compliance period in respect of a specified natural gas energy system of a taxpayer, means the period beginning on the start-up date of the system and ending on the last day of the fifth operating year of the system. (période de conformité)

    dedicated geological storage

    dedicated geological storage has the same meaning as in subsection 127.44(1). (stockage géologique dédié)

    designated provincial Crown corporation

    designated provincial Crown corporation means a corporation

    • (a) not less than 90% of the shares (except directors' qualifying shares) or of the capital of which is owned by one or more persons each of which is His Majesty in right of a province;

    • (b) that is Northwest Territories Power Corporation, Qulliq Energy Corporation or Yukon Energy Corporation; or

    • (c) all of the shares (except directors' qualifying shares) or of the capital of which is owned by one or more persons each of which is a corporation described in paragraph (a) or (b). (société d'État provinciale désignée)

    emission intensity

    emission intensity in respect of a qualified natural gas energy system, means the tonnes of carbon dioxide emissions released into the atmosphere for each gigawatt hour of electrical energy produced as determined by the formula 

    A ÷ B

    where

    A

    is the number determined by the formula

    C − D − E

    where

    C

    is the quantity of carbon dioxide emissions, expressed in tonnes, during an operating year, from the combustion of fuel in the system, as determined in a manner that is acceptable to the Minister of Natural Resources,

    D

    is the quantity of carbon dioxide emissions, expressed in tonnes, attributable to the production of useful thermal energy exported by the system, during the operating year, as determined in a manner that is acceptable to the Minister of Natural Resources, and

    E

    is the quantity of carbon dioxide captured from the system and stored in dedicated geological storage, expressed in tonnes, during the operating year, as determined in a manner that is acceptable to the Minister of Natural Resources; and

    B

    is the quantity of electrical energy produced by the system during the operating year, expressed in gigawatt hours, as determined in a manner that is acceptable to the Minister of Natural Resources. (intensité des émissions)

    government assistance

    government assistance has the same meaning as in subsection 127(9). (aide gouvernementale)

    ineligible use

    ineligible use means

    • (a) in respect of a property other than qualified natural gas energy equipment, use of the property at a time that would, if the property were acquired at that time, result in the property not being a clean electricity property, determined without reference to paragraph (c) of the definition clean electricity property; and

    • (b) in respect of a property that is qualified natural gas energy equipment,

      • (i) use of the property at a time that would, if the property were acquired at that time, result in the property not being a clean electricity property, determined without reference to subparagraph (a)(vi) of the definition qualified natural gas energy equipment and paragraph (c) of the definition clean electricity property, and

      • (ii) any use of the system described in paragraph (a) of the definition qualified natural gas energy equipment, if the actual emission intensity of the system in an operating year is greater than 65 tonnes of carbon dioxide per gigawatt hour of electrical energy, for an operating year that begins after the fifth operating year but before the twenty-first operating year of the system. (utilisation non admissible)

    non-government assistance

    non-government assistance has the same meaning as in subsection 127(9). (aide non gouvernementale)

    nuclear energy property

    nuclear energy property means property that

    • (a) is part of a fixed location system that

      • (i) is used all or substantially all to generate electrical energy, or a combination of electrical energy and heat energy, from nuclear fission, as determined on an annual basis, and

      • (ii) exports more electrical energy than heat energy on a net basis, as determined on an annual basis;

    • (b) is

      • (i) a reactor,

      • (ii) a reactor vessel,

      • (iii) a reactor control rod,

      • (iv) a moderator,

      • (v) cooling equipment,

      • (vi) heat generating equipment,

      • (vii) nuclear fission fuel handling equipment,

      • (viii) a containment structure,

      • (ix) electrical generating equipment,

      • (x) equipment for the distribution of heat energy within the system, or

      • (xi) equipment that is physically and functionally integrated with property described in any of subparagraphs (i) to (x) and that is ancillary equipment (such as control equipment) used solely to support the functioning of property described in any of subparagraphs (i) to (x); and

    • (c) is not

      • (i) nuclear fission fuel,

      • (ii) property used in nuclear waste disposal or storage,

      • (iii) transmission equipment,

      • (iv) distribution equipment,

      • (v) a vehicle,

      • (vi) property that would be included in Class 17 in Schedule II to the Income Tax Regulations if that Class were read without reference to its paragraph (a.‍1),

      • (vii) equipment used to export heat energy from the system, or

      • (viii) a building or other structure. (bien pour l'énergie nucléaire)

    operating year

    operating year of a specified natural gas energy system, means each cumulative 365-day period, the first of which begins on the start-up date of a qualifying entity's specified natural gas energy system, disregarding any period during which the system is not operating.‍ (année d'exploitation)

    preliminary work activity

    preliminary work activity has the same meaning as in subsection 127.45(1), except that the reference to "clean technology property" in paragraph (c) shall be read as "clean electricity property". (travaux préliminaires)

    qualified interprovincial transmission equipment

    qualified interprovincial transmission equipment means property that is primarily used, as determined on an annual basis, to transmit or manage electrical energy that originates in, or is destined for, a province other than the province in which the property is located and

    • (a) that is

      • (i) equipment for the transmission of electrical energy, including cables and switches, that is rated for voltages of at least 69 kilovolts,

      • (ii) electrical transmission structures, including towers and lattices, or

      • (iii) related equipment used to manage electrical energy, including transformers, electric power conditioning equipment and control equipment, that is directly connected to equipment described in subparagraph (i) or (ii); and

    • (b) that is not a building or distribution equipment. (matériel de transmission interprovinciale admissible)

    qualified natural gas energy equipment

    qualified natural gas energy equipment means property

    • (a) that is part of a system that meets the following conditions:

      • (i) the system

        • (A) is fuelled all or substantially all by the combustion of natural gas, as determined on an annual basis, and

        • (B) is not fuelled by anything other than the combustion of gaseous fuels,

      • (ii) the system is used solely for the purpose of generating electrical energy, or a combination of electrical energy and heat energy, determined without reference to capturing carbon dioxide,

      • (iii) the system exports more electrical energy than heat energy on a net basis as determined on an annual basis,

      • (iv) the system is physically and functionally integrated with equipment that captures and prepares or compresses carbon dioxide for transportation,

      • (v) less than 50% of the gross electrical energy generated by the system is used to power the equipment referred to in subparagraph (iv) as determined on an annual basis,

      • (vi) the system is not expected to exceed an emission intensity of 65 tonnes of carbon dioxide per gigawatt hour of gross electrical energy generated, and

      • (vii) a system evaluation has been issued for the system by the Minister of Natural Resources, in the form and manner determined by the Minister of Natural Resources;

    • (b) that is

      • (i) electrical generating equipment,

      • (ii) heat generating equipment used primarily for the purpose of producing heat energy to operate the electrical generating equipment described in subparagraph (i),

      • (iii) equipment that generates both electrical and heat energy,

      • (iv) equipment that is to be used solely

        • (A) for capturing carbon dioxide that is generated by the system, or

        • (B) to prepare or compress for transportation carbon dioxide captured from the system,

      • (v) heat recovery equipment used primarily for the purpose of conserving energy, or reducing the requirement to acquire energy, by extracting for reuse thermal waste that is generated by equipment referred to in any of subparagraphs (i) to (iv) or (vi),

      • (vi) equipment for the distribution of heat energy within the system,

      • (vii) equipment that is physically and functionally integrated with equipment described in any of subparagraphs (i) to (vi) and that is ancillary equipment (such as control equipment) used solely to support the functioning of equipment described in any of those subparagraphs, or

      • (viii) described in any of subparagraphs (i) to (vii) that is incorporated into a system that would not otherwise be described in paragraph (a) if the incorporation causes the system to satisfy the description in paragraph (a);

    • (c) in the case of equipment that is acquired before the start-up date of the system referred to in paragraph (a), that is verified by the Minister of Natural Resources as being equipment described in paragraph (b); and

    • (d) that is not

      • (i) a building or other structure,

      • (ii) transmission equipment,

      • (iii) distribution equipment,

      • (iv) equipment used to export heat energy from the system,

      • (v) fuel storage or fuel handling equipment, or

      • (vi) pollution abatement equipment. (matériel d'énergie alimenté au gaz naturel admissible)

    qualified natural gas energy system

    qualified natural gas energy system means a system that is described in paragraph (a) of the definition qualified natural gas energy equipment. (système énergétique alimenté au gaz naturel admissible)

    qualified validation firm

    qualified validation firm, in respect of a specified natural gas energy system of a taxpayer, means an engineer or engineering firm that

    • (a) is registered and in good standing with a professional association that has the authority or recognition by law of a jurisdiction in Canada to regulate the profession of engineering in

      • (i) the jurisdiction where the system is located, or

      • (ii) if there is no professional association in the jurisdiction described in subparagraph (i), a jurisdiction in Canada where a professional association regulates the profession of engineering;

    • (b) has appropriate insurance coverage;

    • (c) at all times, is independent of, deals at arm's length with and is not an employee of the taxpayer; and

    • (d) meets the requirements described in guidelines published by the Minister of Natural Resources. (firme admissible de validation)

    qualified verification firm

    qualified verification firm, in respect of a specified natural gas energy system of a taxpayer, means an individual or firm that

    • (a) is either

      • (i) an engineer or an engineering firm that is registered and in good standing with a professional association that has the authority or recognition by law of a jurisdiction in Canada to regulate the profession of engineering in

        • (A) the jurisdiction where the system is located, or

        • (B) if there is no professional association in the jurisdiction described in clause (A), a jurisdiction in Canada where a professional association regulates the profession of engineering, or

      • (ii) a verification body accredited and in good standing under the Clean Fuel Regulations;

    • (b) has appropriate insurance coverage;

    • (c) at all times, is independent of, deals at arm's length with and is not an employee of

      • (i) the taxpayer, or

      • (ii) the qualified validation firm in respect of the system;

    • (d) meets the requirements described in guidelines published by the Minister of Natural Resources; and

    • (e) has expertise in auditing natural gas systems to demonstrate compliance with the Regulations Limiting Carbon Dioxide Emissions from Natural Gas-fired Generation of Electricity. (firme admissible de vérification)

    qualifying corporation

    qualifying corporation means

    • (a) a taxable Canadian corporation;

    • (b) a designated provincial Crown corporation;

    • (c) a corporation described in paragraph 149(1)(d.5) not less than 90% of the shares or the capital of which are owned by one or more entities each of which is

      • (i) a municipality in Canada, or

      • (ii) an aboriginal government (as defined in subsection 241(10)) — or a similar Indigenous governing body — described in paragraph 149(1)(c);

    • (d) a corporation described in paragraph 149(1)(d.6) all of the shares (except directors' qualifying shares) or the capital of which are owned by one or more of

      • (i) a municipality in Canada,

      • (ii) an aboriginal government (as defined in subsection 241(10)) — or a similar Indigenous governing body — described in paragraph 149(1)(c), or

      • (iii) a corporation described in paragraph 149(1)(d.5);

    • (e) a corporation all of the shares (except directors' qualifying shares) or of the capital of which are owned by one or more municipalities in Canada in combination with one or more persons each of which is described in the definition designated provincial Crown corporation; or

    • (f) a corporation to which paragraph 149(1)(o.2) applies. (société admissible)

    qualifying entity

    qualifying entity means a qualifying corporation or a qualifying trust. (entité admissible)

    qualifying trust

    qualifying trust means, at all relevant times, a trust

    • (a) each beneficiary of which is a corporation described in paragraph 149(1)(o.2);

    • (b) that is a limited partner of a partnership; and

    • (c) the sole undertaking of which is the holding of its interest in the partnership together with any ancillary activities. (fiducie admissible)

    refurbishment

    refurbishment means significant alterations, renovations, improvements or additions to a property to substantially

    • (a) extend its useful life;

    • (b) increase its capacity; or

    • (c) improve its efficiency. (remise en état)

    specified natural gas energy system

    specified natural gas energy system means a system that is, or was at any time, a qualified natural gas energy system. (système énergétique alimenté au gaz naturel déterminé)

    specified percentage

    specified percentage means, in respect of a clean electricity property of a qualifying entity that is acquired

    • (a) before April 16, 2024, determined without reference to subsection (7), nil;

    • (b) subject to paragraph (a), on or after April 16, 2024 and before January 1, 2035, 15%; and

    • (c) after December 31, 2034, nil. (pourcentage déterminé)

    start-up date

    start-up date of a specified natural gas energy system means the first day on which the system generates electrical energy for sale. (jour du début du projet)

    system plan

    system plan means a plan for a qualified natural gas energy system of a qualifying entity that

    • (a) has been prepared by a qualified validation firm;

    • (b) includes a front-end engineering design study (or an equivalent study as determined by the Minister of Natural Resources) for the system;

    • (c) sets out

      • (i) an expected emission intensity of the electrical energy to be produced by the system that is below 65 tonnes carbon dioxide per gigawatt hour,

      • (ii) an expected ratio of net electrical energy to net heat energy exported that is above 1, and

      • (iii) an expected ratio of electrical energy used to power equipment that captures and prepares or compresses carbon dioxide to gross electrical energy produced that is below 0.5;

    • (d) contains any information required in guidelines published by the Minister of Natural Resources; and

    • (e) is filed by the entity with the Minister of Natural Resources, in the form and manner determined by the Minister of Natural Resources. (plan du système)

  • Marginal note:Clean electricity investment tax credit

    (2) If a qualifying entity files a prescribed form containing prescribed information with the Minister on or before its filing-due date for its taxation year,

    • (a) in the case of an entity that is a taxable Canadian corporation or a qualifying trust, the entity is deemed to have paid on its balance-due day for the year an amount on account of the entity's tax payable under this Part for the year equal to the entity's clean electricity investment tax credit for the year; and

    • (b) subject to subsection (3), in the case of an entity that is described in any of paragraphs (b) to (f) of the definition qualifying corporation in subsection (1), the Minister shall, with all due dispatch, pay to the entity an amount equal to its clean electricity investment tax credit for the year.

  • Marginal note:Section 149 entities

    (3) Subsection (2) does not apply to an entity that is described in any of paragraphs (b) to (f) of the definition qualifying corporation in subsection (1) unless the entity agrees in writing with the Minister to be subject to the provisions of this Act in respect of the entity's clean electricity investment tax credit, with any modifications to those provisions that the circumstances require.

  • Marginal note:Interpretive rule — nuclear energy property

    (4) For the purpose of this section, where a qualifying entity has a leasehold interest in a nuclear energy property

    • (a) subject to subsection (7), the entity is deemed to acquire the property when it acquires the leasehold interest in the property;

    • (b) the capital cost of the leasehold interest in the property to the entity is deemed to be its capital cost of the property; and

    • (c) the property is deemed to be disposed of by the entity when it ceases to hold the leasehold interest in the property for proceeds of disposition equal to the fair market value of the property at the time it ceases to hold the leasehold interest.

  • Marginal note:Amount payable

    (5) Any amount payable by a qualifying entity under this section is deemed to be payable as a tax or as a payment in lieu of tax, as the case may be.

  • Marginal note:Time limit for application

    (6) If the qualifying entity files with the Minister the prescribed form containing prescribed information referred to in subsection (2) after its filing-due date for the year but on or before the later of the day that is one year after that date and December 31, 2026, subsection (2) applies to the entity except that no payment is deemed to arise under that subsection until the prescribed form containing prescribed information has been filed with the Minister.

  • Marginal note:Time of acquisition

    (7) For the purpose of this section, clean electricity property is deemed not to have been acquired by a qualifying entity before the property is considered to have become available for use by the entity, determined without reference to paragraphs 13(27)(c) and (28)(d).

  • Marginal note:Qualified natural gas energy system evaluation

    (8) The Minister of Natural Resources may request from a qualifying entity all documentation and information necessary for the Minister of Natural Resources to complete a qualified natural gas energy system evaluation, including a system plan, and may refuse to complete the evaluation if such documentation or information is not provided by the entity.

  • Marginal note:Special rules — adjustments

    (9) For the purpose of the definition clean electricity investment tax credit in subsection (1), the capital cost of a clean electricity property to a qualifying entity shall

    • (a) not include any amount

      • (i) in respect of which an amount was previously deducted under this section by any person,

      • (ii) in respect of which any other clean economy tax credit (as defined in subsection 127.47(1)) was deducted by any person,

      • (iii) that has, by virtue of section 21, been added to the cost of a property,

      • (iv) in respect of a qualified natural gas energy system, if a CCUS tax credit (as defined in subsection 127.44(1)) was deducted by any person in respect of any property that is part of the system,

      • (v) in respect of an expenditure incurred for a preliminary work activity, or

      • (vi) if a CCUS tax credit (as defined in subsection 127.44(1)) or a clean hydrogen tax credit (as defined in subsection 127.48(1)) was deducted in respect of any part of the capital cost of the property by any person;

    • (b) be determined without reference to subsections 13(7.‍1) and (7.‍4);

    • (c) be reduced by the total of all amounts, each of which can reasonably be considered to be in respect of the property and is

      • (i) an amount of any government assistance or non-government assistance received by the qualifying entity in or before the taxation year in which the property was acquired, or

      • (ii) an amount not described in subparagraph (i) that, in the taxation year, the qualifying entity is entitled to or can reasonably be expected to receive and that would be government assistance or non-government assistance if it were received by the entity; and

    • (d) be determined with reference to subsections 127(11.‍6) to (11.‍8) in respect of an expenditure or cost to a person except that

      • (i) the reference in subsection 127(11.‍6) to subsection 127(11.‍5) is to be read as a reference to section 127.‍491,

      • (ii) the reference in subsection 127(11.‍6) to subsection 127(26) is to be read as a reference to subsection 127.‍491(14), and

      • (iii) the term "qualified expenditure" is to be read as an expenditure eligible to be added to the capital cost of a clean electricity property.

  • Marginal note:Deemed deduction

    (10) For the purposes of this section, paragraph 12(1)(t), subsection 13(7.1), the description of I in the definition undepreciated capital cost in subsection 13(21), subsection 53(2) and sections 127.44, 127.45, 127.48, 127.49 and 129, the amount determined under subsection (2) for a qualifying entity for a taxation year is deemed to have been deducted from its tax otherwise payable under this Part for the year.

  • Marginal note:Repayment of assistance

    (11) Where a qualifying entity has, in a particular taxation year, repaid (or has not received and can no longer reasonably be expected to receive) an amount of government assistance or non-government assistance that was applied to reduce the capital cost of a particular property under paragraph (9)‍(c) for a preceding taxation year, the amount repaid (or no longer expected to be received) is to be added to the capital cost to the entity of a separate clean electricity property that is deemed to be acquired in the particular year for the purposes of this section, provided that a transaction or event described in paragraph (16)(c) has not occurred in respect of the particular property.

  • Marginal note:Partnerships

    (12) Subject to section 127.47, where, in a particular taxation year of a qualifying entity that is a member of a partnership, an amount would be determined under subsection (2) in respect of the partnership, for its taxation year that ends in the particular year, if the partnership were a taxable Canadian corporation and its fiscal period were its taxation year, the portion of that amount that can reasonably be considered to be the qualifying entity's share thereof shall be added in computing the clean electricity investment tax credit of the qualifying entity at the end of the particular year.

  • Marginal note:Trust — assistance received by beneficiary

    (13) For the purposes of computing a clean electricity investment tax credit, where at a particular time a qualifying corporation described in paragraph (a) of the definition qualifying trust is a beneficiary of a qualifying trust, and the beneficiary or the trust has received, is entitled to receive or can reasonably be expected to receive government assistance or non-government assistance, the amount of that assistance that may reasonably be considered to be in respect of a clean electricity property for which a clean electricity investment tax credit is allocated by a partnership to the trust shall be deemed to have been received by the partnership as government assistance or non-government assistance, as the case may be, in respect of the property.

  • Marginal note:Unpaid amounts

    (14) For the purposes of this section, where any part of the capital cost of a qualifying entity's particular clean electricity property is unpaid on the day that is 180 days after the end of the taxation year in which a deduction in respect of a clean electricity investment tax credit would otherwise be available in respect of the particular property, such amount is deemed to be

    • (a) excluded from the capital cost of the particular property in the year; and

    • (b) added to the capital cost of a separate clean electricity property that is deemed to be acquired by the qualifying entity at the time the amount is paid, provided that a transaction or event described in paragraph (16)(c) has not occurred in respect of the particular property.

  • Marginal note:Tax shelter investment

    (15) Subsection (2) does not apply if a clean electricity property — or an interest in a person or partnership that has, directly or indirectly, an interest in, or for civil law, a right in, such property — is a tax shelter investment for the purpose of section 143.2.

  • Marginal note:Recapture — conditions for application

    (16) Subsection (17) applies in a taxation year of a taxpayer if

    • (a) the taxpayer acquired a particular property that is

      • (i) a clean electricity property, other than qualified natural gas energy equipment, in the year or any of the preceding 10 calendar years, or

      • (ii) a clean electricity property that is qualified natural gas energy equipment, in the year or any of the preceding 20 calendar years;

    • (b) the taxpayer became entitled to a clean electricity investment tax credit in respect of the capital cost, or a portion of the capital cost, of the particular property; and

    • (c) in the year, the particular property (or another property that incorporates the particular property) is converted to an ineligible use, is exported from Canada or is disposed of without having been previously exported or converted to an ineligible use.

  • Marginal note:Recapture

    (17) If this subsection applies in a taxation year of a taxpayer in respect of a particular property, the taxpayer is liable to pay an amount for the year, on or before its balance-due day for the year, determined by the formula

    (A − B) × (C ÷ D)

    where

    A

    is the amount of the taxpayer's clean electricity investment tax credit in respect of the particular property;

    B

    is the total of all amounts each of which can reasonably be considered to be the portion of any amount previously paid by the taxpayer because of subsection (18) in respect of the property;

    C

    is an amount, not exceeding the amount determined for D, equal to

    • (a) if the particular property is disposed of to a person who deals at arm's length with the taxpayer, the proceeds of disposition of the property, and

    • (b) in any other case, the fair market value of the property; and

    D

    is the capital cost of the particular property on which the clean electricity investment tax credit was deducted.

  • Marginal note:Recovery — qualified natural gas energy systems

    (18) In the taxation year of a taxpayer in which the compliance period of the taxpayer's specified natural gas energy system ends, if the average actual emission intensity of the electrical energy produced is greater than 68.5 tonnes of carbon dioxide per gigawatt hour of electrical energy, the taxpayer is liable to pay an amount for the year, on or before its balance-due day for the year, determined by the formula

    A − B

    where

    A

    is the total amount of clean electricity investment tax credits received in respect of qualified natural gas energy equipment that was part of the system; and

    B

    is the total of all amounts each of which can reasonably be considered to be the portion of any amount previously paid by the taxpayer in respect of the equipment described in A because of subsection (17).

  • Marginal note:Compliance — emission intensity

    (19) If a clean electricity investment tax credit was deducted by a taxpayer in respect of a qualified natural gas energy system, the taxpayer shall file with the Minister and the Minister of Natural Resources, within 180 days after the end of each of the first 20 operating years, a compliance report in prescribed form and manner including the following information:

    • (a) the actual emission intensity of the electrical energy produced by the system during the year;

    • (b) the quantity, in gigawatt hours, of electrical energy produced by the system during the year;

    • (c) any shutdown time of the system in respect of the year;

    • (d) for the compliance report in respect of the fifth operating year, a report that verifies the actual emission intensity of the electrical energy that is produced during each operating year of the compliance period, prepared by a qualified verification firm in respect of the system; and

    • (e) any information required in guidelines published by the Minister of Natural Resources.

  • Marginal note:Minister's determination

    (20) For the purpose of subsection (18), the Minister of Natural Resources shall review each of the compliance reports of a qualifying entity described in subsection (19) and the Minister may, in consultation with the Minister of Natural Resources, make a determination or redetermination of the actual emission intensity of the electrical energy produced by an entity's qualified natural gas energy system for any operating year during the compliance period of the system.

  • Marginal note:Failure to report

    (21) Each taxpayer that fails to file a compliance report as required by subsection (19) is liable to a penalty, for each such failure, in an amount, not exceeding the total of all clean electricity investment tax credits deducted by the taxpayer in respect of the system, equal to the amount determined by the formula

    ((4% × A) ÷ 365) × B

    where

    A

    is the total of all amounts, each of which is the amount of a clean electricity investment tax credit in respect of the system deducted by the taxpayer for a taxation year that ended before the applicable date in subsection (19); and

    B

    is the number of days during which the failure continues.

  • Marginal note:Certain related party transfers

    (22) Subsections (16) and (17) do not apply to a qualifying entity (in this subsection referred to as the "transferor") that disposes of a property to another qualifying entity (in this subsection referred to as the "purchaser") that is related to the transferor if the purchaser acquired the property in circumstances where the property would be clean electricity property to the purchaser but for paragraph (c) of that definition.

  • Marginal note:Certain related party transfers — recapture deferred

    (23) If subsection (22) applies, subsection 127(34) applies with such modifications as the circumstances require, including that the reference to subsection 127(33) be read as a reference to subsection 127.‍491(22).

  • Marginal note:Recapture event reporting requirement

    (24) If subsection (16) or (22) applies to a qualifying entity for a particular year, the entity shall notify the Minister in prescribed form and manner on or before the entity's filing-due date for the year.

  • Marginal note:Information return — partnerships

    (25) If subsections (26) and (27) apply with respect to the property of a partnership for a particular fiscal period, the partnership shall notify the Minister in prescribed form and manner on or before the day when a return is required by section 229 of the Income Tax Regulations to be filed in respect of the period.

  • Marginal note:Recapture and recovery — partnerships

    (26) Subject to section 127.47, if subsection (12) has at any time applied to add an amount in computing the clean electricity investment tax credit of a current or former member of a partnership, then for the purposes of this Part, subsections (16) to (18) and (23) shall apply to determine amounts in respect of the partnership as if the partnership were a taxable Canadian corporation, its fiscal period were its taxation year and it had deducted all of the clean electricity investment tax credits that were previously added in computing the clean electricity investment tax credit of any member of the partnership under subsection (2) because of the application of subsection (12) in respect of its partnership interest.

  • Marginal note:Member's share of tax

    (27) Unless subsection (28) applies, if, in a taxation year, a taxpayer is a member of a partnership, the amount that can reasonably be considered to be the taxpayer's share of any amount of tax determined because of subsection (26) in respect of the partnership for its fiscal period ending in the taxation year shall be added to the taxpayer's tax otherwise payable under this Part for the taxation year.

  • Marginal note:Election by member to pay tax

    (28) A taxable Canadian corporation that is a member of a partnership during a fiscal period of the partnership may elect, in prescribed form and manner, to add to its tax payable under this Part for its taxation year that includes the end of the fiscal period the total amount of tax determined for that fiscal period because of subsection (26) in respect of the partnership.

  • Marginal note:Joint and several, or solidary, liability

    (29) Each current or former member of a partnership is jointly and severally, or solidarily, liable for any portion of the amount of tax determined because of subsection (26) in respect of the partnership for a fiscal period that is not added to the tax payable

    • (a) of a qualifying entity under subsection (27), other than a qualifying entity that is exempt from tax under this Part and has not agreed under subsection (3) to be subject to the provisions of this Act in respect of the entity's clean electricity investment tax credit; or

    • (b) of a taxable Canadian corporation because of subsection (28) and paid by the corporation by its filing-due date for its taxation year that includes the end of the fiscal period.

  • Marginal note:Former member liability

    (30) If a taxpayer was, at the time that an amount is determined because of subsection (26) in respect of the partnership for a taxation year, no longer a member of the partnership, the taxpayer's liability for tax because of subsection (29) is limited to the total of all amounts each of which is an amount determined for the taxpayer under subsection (2) because of its membership in the partnership.

  • Marginal note:Interest on recovery tax

    (31) For the purpose of applying subsection 161(1) to an amount of tax payable because of subsection (18), the balance-due day of a qualifying entity is deemed to be the balance-due day of the taxation year for the related clean electricity investment tax credit under subsection (2).

  • Marginal note:Environmental compliance

    (32) A property that would otherwise be a clean electricity property of a qualifying entity is deemed not to be a clean electricity property of the entity if, at the time the property becomes available for use by the entity, there is substantial non-compliance by the entity with the requirements of any environmental law, by-law or regulation of Canada, a province, a municipality or a municipal or public body performing a function of government in Canada that is applicable in respect of the property.

  • Marginal note:Compliance — reasonable efforts

    (33) The following rules apply in respect of a qualifying entity's property described in subparagraph (e)(vi), (viii) or (ix) of the definition clean electricity property in subsection (1):

    • (a) where the property is temporarily operated in a manner that is an ineligible use solely because of a deficiency, failing or shutdown of the system of which it is a part, and that deficiency, failing or shutdown is beyond the control of the entity, the property is deemed, for the purposes of subsections (16) and (17), not to be operated in a manner that is an ineligible use during the period of the deficiency, failing or shutdown, if the entity makes all reasonable efforts to rectify the circumstances within a reasonable time; and

    • (b) for the purpose of paragraph (a), the system referred to in that paragraph may include property of another person or partnership if

      • (i) the property would reasonably be considered to be part of the system if the property were owned by the entity,

      • (ii) the property

        • (A) utilizes electrical energy or heat energy obtained from the system,

        • (B) transports or stores carbon dioxide obtained from the system, or

        • (C) generates or stores electricity that is transmitted by the system,

      • (iii) the operation of the property is necessary for the system to avoid operation in a manner that is an ineligible use, and

      • (iv) at the time the system first became operational, the deficiency, failing or shutdown in the operation of the property could not reasonably have been anticipated to occur within five calendar years after that time.

  • Marginal note:Project

    (34) If a major project is undertaken in discrete phases for bona fide business or engineering reasons, the Minister may determine that each phase is a separate project for the purposes of applying paragraph (a) of the definition clean electricity property in subsection (1).

  • Marginal note:Authority of the Minister of Natural Resources

    (35) For the purpose of determining whether a property is a clean electricity property, any technical guide published by the Department of Natural Resources, and as amended from time to time, is to apply conclusively with respect to engineering and scientific matters.

  • Marginal note:Clean electricity investment tax credit — purpose

    (36) The purpose of this section is to encourage the investment of capital in the deployment of clean electricity property in Canada.

• (2) The definition qualifying corporation in subsection 127.491(1) of the Act, as enacted by subsection (1), is amended by striking out "or" at the end of paragraph (e) and by adding the following after paragraph (f):

  • (g) the Canada Infrastructure Bank; or

  • (h) a prescribed entity. (société admissible)

• (3) The definition qualifying corporation in subsection 127.491(1) of the Act, as amended by subsection (2), is amended by striking out "or" at the end of paragraph (g) and by replacing paragraph (h) with the following:

  • (h) Canada Growth Fund Inc. and any corporation that is a subsidiary wholly-owned corporation of Canada Growth Fund Inc.; or

  • (i) a prescribed entity. (société admissible)

• (4) Paragraph 127.491(2)(b) of the Act, as enacted by subsection (1), is replaced by the following:

  • (b) subject to subsection (3), in the case of an entity that is described in any of paragraphs (b) to (h) of the definition qualifying corporation in subsection (1), the Minister shall, with all due dispatch, pay to the entity an amount equal to its clean electricity investment tax credit for the year.

• (5) Paragraph 127.491(2)(b) of the Act, as enacted by subsection (4), is replaced by the following:

  • (b) subject to subsection (3), in the case of an entity that is described in any of paragraphs (b) to (i) of the definition qualifying corporation in subsection (1), the Minister shall, with all due dispatch, pay to the entity an amount equal to its clean electricity investment tax credit for the year.

• (6) Subsection 127.491(3) of the Act, as enacted by subsection (1), is replaced by the following:

  • Marginal note:Section 149 entities

    (3) Subsection (2) does not apply to an entity that is described in any of paragraphs (b) to (h) of the definition qualifying corporation in subsection (1) unless the entity agrees in writing with the Minister to be subject to the provisions of this Act in respect of the entity's clean electricity investment tax credit, with any modifications to those provisions that the circumstances require.

• (7) Subsection 127.491(3) of the Act, as enacted by subsection (6), is replaced by the following:

  • Marginal note:Section 149 entities

    (3) Subsection (2) does not apply to an entity that is described in any of paragraphs (b) to (i) of the definition qualifying corporation in subsection (1) unless the entity agrees in writing with the Minister to be subject to the provisions of this Act in respect of the entity's clean electricity investment tax credit, with any modifications to those provisions that the circumstances require.

• (8) Paragraph 127.491(9)(c) of the Act, as enacted by subsection (1), is replaced by the following:

  • (c) be reduced by the total of all amounts (other than an amount received or receivable from the Canada Infrastructure Bank) each of which can reasonably be considered to be in respect of the property and is

    • (i) an amount of any government assistance or non-government assistance received by the qualifying entity in or before the taxation year in which the property was acquired, or

    • (ii) an amount not described in subparagraph (i) that, in the taxation year, the qualifying entity is entitled to or can reasonably be expected to receive and that would be government assistance or non-government assistance if it were received by the entity; and

• (9) The portion of paragraph 127.491(9)(c) of the Act before subparagraph (i), as enacted by subsection (8), is replaced by the following:

  • (c) be reduced by the total of all amounts (other than an amount received or receivable from an entity that is described in paragraph (g) or (h) of the definition qualifying corporation in subsection (1)) each of which can reasonably be considered to be in respect of the property and is

• (10) Subsection (1) is deemed to have come into force on April 16, 2024.

• (11) Subsection (2) is deemed to have come into force on December 16, 2024 and applies in respect of property that is acquired and becomes available for use on or after December 16, 2024.

• (12) Subsection (3) is deemed to have come into force on November 4, 2025 and applies in respect of property that is acquired and becomes available for use on or after November 4, 2025.

• (13) Subsections (4), (6) and (8) apply in respect of property that is acquired and becomes available for use on or after December 16, 2024.

• (14) Subsections (5), (7) and (9) apply in respect of property that is acquired and becomes available for use on or after November 4, 2025.

• 58 (1) Paragraph 127.52(1)(d.1) of the Act is replaced by the following:

  • (d.1) in respect of a disposition to which paragraph 38(a.1) applies (other than a disposition of a property that is included in a flow-through share class of property, as defined in section 54), the portion of that paragraph before subparagraph (i) were read as "a taxpayer's taxable capital gain for a taxation year from the disposition of a property is equal to 3/10 of the taxpayer's capital gain for the year from the disposition of the property if";

  • (d.2) in respect of a disposition of a property that is included in a flow-through share class of property (as defined in section 54) to which paragraph 38(a.1) applies, the portion of that paragraph before subparagraph (i) were read as "a taxpayer's taxable capital gain for a taxation year from the disposition of a flow-through share class of property is equal to 3/10 of the amount, if any, by which the taxpayer's capital gain for the year from the disposition of the flow-through share class of property, exceeds the amount deemed to be a capital gain of the taxpayer from the disposition of another capital property because of the application of subsection 40(12) in respect of the disposition of the flow-through share class of property";

• (2) Subparagraph 127.52(1)(h)(vi) of the Act is replaced by the following:

  • (vi) twice the amount deducted under subsection 110.61(2) or 110.62(2);

• (3) Subparagraph 127.52(1)(j)(ii) of the Act is replaced by the following:

  • (ii) paragraphs 20(1)‍(c) to (f) and (bb) in respect of an amount borrowed or paid to earn income from property for the year, other than an amount described under any of paragraphs (b), (c), (c.‍2), (c.‍3) and (e.1),

• (4) Subsections (1) to (3) apply to taxation years that begin after 2023.

• 59 (1) Paragraph 127.55(f) of the Act is amended by striking out "or" at the end of subparagraph (vi) and by adding the following after subparagraph (vii):

  • (viii) a trust if

    • (A) it is established

      • (I) under a law of Canada or a province and is for the benefit of an Indigenous group, community or people that holds rights recognized and affirmed by section 35 of the Constitution Act, 1982, or

      • (II) under a treaty, or a settlement agreement, between His Majesty in right of Canada, or His Majesty in right of a province, and an Indigenous group, community or people described in subclause (I), and

    • (B) all or substantially all of the contributions to the trust before the end of the taxation year are amounts paid under the law, treaty or settlement agreement described in subclause (A)(I) or (II) or are reasonably traceable to those amounts, or

  • (ix) a trust, all of the beneficiaries of which are any combination of

    • (A) all of the members of an Indigenous group, community or people that holds rights recognized and affirmed by section 35 of the Constitution Act, 1982,

    • (B) a public body performing a function of government in Canada within the meaning of paragraph 149(1)(c) in relation to an Indigenous group, community or people that holds rights recognized and affirmed by section 35 of the Constitution Act, 1982,

    • (C) a person described under paragraph 149(1)(f) or (l) that is organized and operated primarily for health, education, social welfare or community improvement for the benefit of the members of an Indigenous group, community or people that holds rights recognized and affirmed by section 35 of the Constitution Act, 1982,

    • (D) a corporation all of the shares (except directors' qualifying shares) or of the capital of which are owned by a person described in clause (B) or clause (C), a trust described in subparagraph (viii), another corporation that is described in this clause or a combination of those persons, and

    • (E) a trust described in subparagraph (viii).

• (2) Subsection (1) applies to taxation years that begin after December 31, 2023.

• 60 (1) Clause 128(2)(e)(ii)(A) of the Act is replaced by the following:

  • (A) an amount under any of paragraphs 110(1)(d) to (d.3) and sections 110.6, 110.61 and 110.62 to the extent that the amount is in respect of an amount included in income under subparagraph (i) for that taxation year, and

• (2) Subparagraph 128(2)(f)(iii) of the Act is replaced by the following:

  • (iii) in computing the individual's taxable income for the year, no amount were deductible under any of paragraphs 110(1)(d) to (d.3) and sections 110.6, 110.61 and 110.62 in respect of an amount included in income under subparagraph (e)(i), and no amount were deductible under section 111, and

• (3) Subsections (1) and (2) are deemed to have come into force on January 1, 2024.

• 61 (1) The definitions perte and revenu in subsection 129(4) of the French version of the Act are repealed.

• (2) Paragraph (b) of the definition income or loss in subsection 129(4) of the English version of the Act is replaced by the following:

  • (b) does not include

    • (i) the income or loss from any property that is incident to or pertains to an active business carried on by it,

    • (ii) the income or loss from any property that is used or held principally for the purpose of gaining or producing income from an active business carried on by it, or

    • (iii) for each election made for the year under subsection 93.4(2) by the corporation or by a partnership of which the corporation is a member (or of which the corporation is deemed to be a member under subsection 93.1(3)),

      • (A) the portion of the FABI amount (within the meaning of subsection 93.4(2)(a)) in respect of the election that is included in computing the corporation's income under subsection 91(1) for the year or, if the election was made by a partnership of which the corporation is a member, the portion of the FABI amount included in the partnership's income under subsection 91(1) that is included in the corporation's income for the year in accordance with subsection 96(1), or

      • (B) the portion of the amount deducted under subsection 91(4) that is determined under subparagraph 93.4(2)(b)(i) to be in respect of the FABI amount to which the election relates. (revenu ou perte)

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

  revenu ou perte Revenu ou perte d'une société pour une année d'imposition provenant d'une source qui est un bien qui, à la fois : 

  • a) comprend le revenu ou la perte provenant d'une entreprise de placement déterminée qu'elle exploite au Canada, sauf celui ou celle provenant d'une source à l'étranger;

  • b) ne comprend pas, selon le cas :

    • (i) le revenu ou la perte provenant d'un bien qui se rapporte directement ou accessoirement à une entreprise qu'elle exploite activement,

    • (ii) le revenu ou la perte provenant d'un bien qui est utilisé ou détenu principalement pour tirer un revenu d'une entreprise qu'elle exploite activement,

    • (iii) pour chaque choix exercé pour l'année en application du paragraphe 93.4(2) par la société ou par une société de personnes dont la société est un associé (ou dont la société est réputée être un associé en vertu du paragraphe 93.1(3)), selon le cas :

      • (A) la fraction du montant REATE (au sens de l'alinéa 93.4(2)a)) relativement au choix qui est incluse dans le calcul du revenu de la société en application du paragraphe 91(1) pour l'année ou, si le choix a été exercé par un société de personnes dont la société est un associé, la fraction du montant REATE incluse au revenu de la société de personnes en vertu du paragraphe 91(1) qui est incluse dans le revenu de la société pour l'année conformément au paragraphe 96(1),

      • (B) la fraction du montant déduit en vertu du paragraphe 91(4) qui est déterminée en application du sous-alinéa 93.4(2)b)(i) relativement au montant REATE auquel le choix se rapporte. (income or loss)

• (4) Subsections (1) to (3) apply to taxation years that begin on or after April 7, 2022.

• 62 (1) The portion of subsection 131(8) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Meaning of mutual fund corporation

    (8) Subject to subsections (8.1) to (8.3), a corporation is, for the purposes of this section, a mutual fund corporation at any time in a taxation year if, at that time, it was a prescribed labour-sponsored venture capital corporation or

• (2) Section 131 of the Act is amended by adding the following after subsection (8.1):

  • Marginal note:Substantial interest

    (8.2) A corporation (other than a prescribed labour-sponsored venture capital corporation) is deemed not to be a mutual fund corporation after a particular time if, at that time,

    • (a) a person or partnership, or any combination of persons or partnerships that do not deal with each other at arm's length (in either case, referred to in this subsection and subsection (8.3) as "specified persons") own, in the aggregate, shares of the capital stock of the corporation having a fair market value of more than 10% of the fair market value of all of the issued and outstanding shares of the capital stock of the corporation; and

    • (b) the corporation is controlled by or for the benefit of one or more specified persons.

  • Marginal note:Exception

    (8.3) Subsection (8.2) does not apply to a corporation if, at the particular time referred to in that subsection,

    • (a) the corporation was incorporated not more than two years before the particular time; and

    • (b) the aggregate fair market value of the shares of the capital stock of the corporation owned by specified persons does not exceed $5,000,000.

• (3) Subsections (1) and (2) apply to taxation years that begin after 2024, except that if a corporation was controlled by or for the benefit of a real estate investment trust (as defined in subsection 122.1(1) of the Act) on April 16, 2024, subsections (1) and (2) apply to taxation years of the corporation that begin after 2025.

63 Paragraph (a) of the definition tax deferred cooperative share in subsection 135.1(1) of the Act is replaced by the following:

• (a) issued, after 2005 and before 2031, by an agricultural cooperative corporation to a person or partnership that is at the time the share is issued an eligible member of the agricultural cooperative corporation, pursuant to an allocation in proportion to patronage;

• 64 (1) Subsection 136(1) of the Act is replaced by the following:

  • 136 (1) Notwithstanding any other provision of this Act, a cooperative corporation that would, but for this section, be a private corporation is deemed not to be a private corporation except for the purposes of paragraphs 87(2)(vv) and (ww) (including, for greater certainty, in applying those paragraphs as provided under paragraph 88(1)(e.2)), the definitions excessive eligible dividend designation, general rate income pool and low rate income pool in subsection 89(1), subsections 89(4) to (6) and (8) to (10), sections 123.4, 125, 125.1, 127 and 127.1, the definition mark-to-market property in subsection 142.2(1), sections 152 and 157, subsection 185.2(3), the definitions qualifying cooperative business and small business corporation in subsection 248(1) (as it applies for the purposes of paragraph 39(1)(c)) and subsection 249(3.1).

• (2) Subsection (1) is deemed to have come into force on January 1, 2024.

• 65 (1) Subsection 142.7(4) of the Act is replaced by the following:

  • Marginal note:Deemed fair market value

    (4) If a Canadian affiliate of an entrant bank and the entrant bank make an election under subsection (3) in respect of a transfer of property by the Canadian affiliate to the entrant bank, for the purposes of subsections 15(1), 52(2), 69(1), (4) and (5), 246(1) and 247(2.02) in respect of the transfer, the fair market value of the property is deemed to be the amount agreed by the Canadian affiliate and the entrant bank in their election.

• (2) Subsection (1) applies to taxation years and fiscal periods that begin after November 4, 2025.

• 66 (1) The definition issuer in subsection 146(1) of the Act is replaced by the following:

  issuer

  issuer means the person referred to in the definition retirement savings plan

  • (a) with whom an annuitant has a contract or arrangement described in paragraph (a) or (b) of that definition, or

  • (b) that established an arrangement described in paragraph (c) of that definition; (émetteur)

• (2) The definition benefit in subsection 146(1) of the Act is amended by striking out "and" at the end of paragraph (c), by adding "and" at the end of paragraph (c.1) and by adding the following after paragraph (c.1):

  • (c.2) an amount that is paid or transferred to an unclaimed property authority in respect of an unlocated individual

• (3) The portion of the definition refund of premiums in subsection 146(1) of the Act before paragraph (a) is replaced by the following:

  refund of premiums

  refund of premiums means any amount paid out of or under an RRSP (other than a tax-paid amount in respect of the plan or an amount paid from an arrangement described in paragraph (c) of the definition retirement savings plan in this subsection) as a consequence of the death of the annuitant under the plan,

• (4) The definition retirement savings plan in subsection 146(1) of the Act is amended by striking out "or" at the end of paragraph (a), by adding "or" at the end of paragraph (b) and by adding the following after paragraph (b):

  • (c) an arrangement established at the direction of an unclaimed property authority to receive property from an RRSP or registered pension plan in respect of an unlocated individual; (régime d'épargne-retraite)

• (5) Subsection 146(3) of the Act is amended by adding the following after paragraph (b):

  • (c) does not meet the conditions in subsection (2), if the plan is an arrangement described in paragraph (c) of the definition retirement savings plan in subsection (1);

• (6) Subsection 146(16) of the French version of the Act is amended by adding the following after paragraph (a.1):

  • a.2) soit à un CELIAPP au profit du rentier, si le paragraphe (8.3) ne s'appliquait pas à un montant relativement à un bien lorsque le rentier a plutôt reçu le bien à titre de prestations dans le cadre d'un régime enregistré d'épargne-retraite;

• (7) Section 146 of the Act is amended by adding the following after subsection (22):

  • Marginal note:Unclaimed property authority

    (23) If an unclaimed property authority has established an RRSP to receive property in respect of an unlocated individual,

    • (a) subsections (8.8) to (8.93) do not apply to the unlocated individual in respect of the property (or property substituted for it) while such property is held under the RRSP;

    • (b) paragraph (4)(c) does not apply to any trust governed by the RRSP; and

    • (c) subsection (20) is to be read without reference to its paragraph (c) in respect of an amount credited or added to a deposit while the property (or property substituted for it) is held under the RRSP.

  • Marginal note:Unclaimed property authority — transfers

    (24) If an unclaimed property authority has established an RRSP to receive property in respect of an unlocated individual and the property (or property substituted for it) is claimed by an individual that is eligible to receive it in accordance with applicable law, the individual who made the claim is deemed to be the annuitant under the RRSP for the purposes of subsection (16), provided that individual is or was

    • (a) if the property was received by the authority from a registered pension plan, the member (as defined in subsection 147.1(1)) of the registered pension plan;

    • (b) if the property was received by the authority from an RRSP, the annuitant (as defined in subsection 146(1)) of the RRSP;

    • (c) a spouse or common-law partner of an individual described in paragraph (a) or (b), immediately before the death of that individual; or

    • (d) a child or grandchild of an individual described in paragraph (a) or (b) who was, immediately before the death of that individual, financially dependent on that individual for support because of mental or physical infirmity.

• (8) Subsections (1) and (3) to (5) come into force on January 1, 2027.

• (9) Subsection (2) applies in respect of amounts paid or transferred to an unclaimed property authority after December 31, 2026.

• (10) Subsection (6) is deemed to have come into force on June 20, 2024.

• (11) Subsection (7) applies in respect of RRSPs established by an unclaimed property authority after December 31, 2026.

• 67 (1) Paragraphs 146.2(9)(b) and (c) of the Act are replaced by the following:

  • (b) there shall be included in computing a taxpayer's income for a taxation year the total of all amounts each of which is an amount determined by the formula

    A − B − C

    where

    A

    is the amount of a payment made out of or under the trust, in satisfaction of all or part of the taxpayer's beneficial interest in the trust, in the taxation year, after the holder's death and at or before the exemption-end time,

    B

    is the amount designated in respect of the payment as an exempt contribution (as defined in subsection 207.01(1)), and

    C

    is an amount designated by the trust not exceeding the lesser of

    • (i) the amount by which the amount of the payment exceeds the amount determined for B in respect of the payment, and

    • (ii) the amount by which the fair market value of all of the property held by the trust immediately before the holder's death exceeds the total of all amounts each of which is the amount determined for C in respect of any other payment made out of or under the trust prior to the payment; and

  • (c) there shall be included in computing the trust's income for its first taxation year, if any, that begins after the exemption-end time the amount determined by the formula

    D − E − F

    where

    D

    is the sum of the fair market value of all of the property held by the trust at the exemption-end time the total of all payments made out of or under the trust after the holder's death and at or before the exemption-end time,

    E

    is the sum of

    • (i) the total of all amounts each of which is an amount determined for B in paragraph (b), and

    • (ii) the total of all amounts included in a taxpayer's income under paragraph (b) in respect of the trust, and

    F

    is the fair market value of all of the property held by the trust immediately before the holder's death.

• (2) Subsection (1) comes into force or is deemed to have come into force on January 1, 2026.

• 68 (1) The definition retirement income fund in subsection 146.3(1) of the Act is replaced by the following:

  retirement income fund

  retirement income fund means an arrangement

  • (a) between a carrier and an annuitant under which, in consideration for the transfer to the carrier of property, the carrier undertakes to pay amounts to the annuitant (and, if the annuitant so elects, to the annuitant's spouse or common-law partner after the annuitant's death), the total of which is, in each year in which the minimum amount under the arrangement for the year is greater than nil, not less than the minimum amount under the arrangement for that year, but the amount of any such payment does not exceed the value of the property held in connection with the arrangement immediately before the time of the payment, or

  • (b) established at the direction of an unclaimed property authority to receive property from a RRIF, RRSP or registered pension plan in respect of an unlocated individual. (fonds de revenu de retraite)

• (2) The portion of the definition designated benefit in subsection 146.3(1) of the Act before paragraph (a) is replaced by the following:

  designated benefit

  designated benefit of an individual in respect of a RRIF (other than an arrangement described in paragraph (b) of the definition retirement income fund in this subsection) means the total of

• (3) The portion of the definition carrier in subsection 146.3(1) of the English version of the Act after paragraph (d) is repealed.

• (4) The portion of the definition émetteur in subsection 146.3(1) of the French version of the Act before paragraph (a) is replaced by the following:

  émetteur À l'égard d'un fonds de revenu de retraite, l'une des personnes suivantes :

• (5) Section 146.3 of the Act is amended by adding the following after subsection (1.5):

  • Marginal note:Nil minimum amount

    (1.6) Despite the definition minimum amount in subsection (1), and subject to subsection (1.7), the minimum amount under a retirement income fund for a year is nil, if at the beginning of the year the fund is held under the direction of an unclaimed property authority in respect of an unlocated individual.

  • Marginal note:Accumulated minimum amount

    (1.7) If an unclaimed property authority directs a carrier of a retirement income fund to transfer all or part of the property held in connection with the fund to a RRIF of an individual who is entitled to claim the property in accordance with applicable law,

    • (a) despite the definition minimum amount in subsection (1), the minimum amount under the fund for the year that includes the transfer is equal to the total of all amounts each of which is the minimum amount that, in the absence of this subsection and subsection (1.6), would have been the minimum amount under the fund in the year of the transfer or a preceding year to which subsection (1.6) applied; and

    • (b) an amount that is not less than the minimum amount determined under paragraph (a) must be paid directly to the individual from the fund before the first such transfer.

• (6) Section 146.3 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Idem

    (2.1) Despite subsection (2), the Minister may accept for registration for the purposes of this Act any arrangement that does not meet the conditions in subsection (2) if the arrangement is described in paragraph (b) of the definition retirement income fund in subsection (1).

• (7) Subsection 146.3(5) of the Act is amended by striking out "or" at the end of paragraph (c), by adding "or" at the end of paragraph (d) and by adding the following after paragraph (d):

  • (e) an amount that is paid or transferred to an unclaimed property authority in respect of an unlocated individual.

• (8) Section 146.3 of the Act is amended by adding the following after subsection (15):

  • Marginal note:Unclaimed property authority

    (16) If an unclaimed property authority has established a RRIF to receive property in respect of an unlocated individual,

    • (a) subsections (6) to (6.4) do not apply to the unlocated individual in respect of the property (or property substituted for it) while such property is held under the RRIF;

    • (b) subsection (3.1) does not apply to any trust governed by the RRIF; and

    • (c) subsection (15) is to be read without reference to its paragraph (c) in respect of an amount credited or added to a deposit while the property (or property substituted for it) is held under the RRIF.

  • Marginal note:Unclaimed property authority — transfers

    (17) If an unclaimed property authority has established a RRIF to receive property in respect of an unlocated individual and the property (or property substituted for it) is claimed by an individual that is eligible to receive it in accordance with applicable law, the individual who made the claim is deemed to be the annuitant under the RRIF for the purposes of paragraphs (2)(d) and (e) and subsection (14.1), provided that individual is or was

    • (a) if the property was received by the authority from a registered pension plan, the member (as defined in subsection 147.1(1)) of the registered pension plan;

    • (b) if the property was received by the authority from an RRSP, the annuitant (as defined in subsection 146(1)) of the RRSP;

    • (c) if the property was received by the authority from a RRIF, the annuitant (as defined in subsection 146.3(1)) of the RRIF;

    • (d) a spouse or common-law partner of an individual described in paragraph (a), (b) or (c), immediately before the death of that individual; or

    • (e) a child or grandchild of an individual described in paragraph (a), (b) or (c) who was, immediately before the death of that individual, financially dependent on that individual for support because of mental or physical infirmity.

• (9) Subsections (1) to (6) come into force on January 1, 2027.

• (10) Subsection (7) applies in respect of amounts paid or transferred to an unclaimed property authority after December 31, 2026.

• (11) Subsection (8) applies in respect of RRIFs established by an unclaimed property authority that receive property in respect of an amount paid or transferred to an unclaimed property authority after December 31, 2026.

• 69 (1) The definition first home savings account or FHSA in subsection 146.6(1) of the Act is replaced by the following:

  first home savings account

  first home savings account or FHSA means a qualifying arrangement registered with the Minister that has not ceased to be a FHSA under subsection 146.6(16). (compte d'épargne libre d'impôt pour l'achat d'une première propriété ou CELIAPP)

• (2) The description of C in paragraph (a) of the definition annual FHSA limit in subsection 146.6(1) of the Act is replaced by the following:

  C

  is the amount by which the total of all designated amounts described in paragraph (b) of the definition designated amount in subsection 207.01(1) for the year exceeds the total of all contributions made to a FHSA by the taxpayer after the taxpayer's first qualifying withdrawal from a FHSA,

• (3) The portion of subsection 146.6(15) of the Act before paragraph (c) is replaced by the following:

  • Marginal note:Deemed transfer or distribution

    (15) If an amount is received at any time from the FHSA of a deceased holder by the holder's legal representative and a survivor of the holder is entitled to all or a portion of the amount (in this subsection referred to as the "survivor's amount") under a decree, order or judgment of a competent tribunal or under a written agreement (provided that the entitlement relates to the survivor's rights or interests in respect of property as a result of marriage or common-law partnership), or as a person beneficially interested under the deceased's estate, the following rules apply:

    • (a) if a payment is made from the estate to a FHSA, RRSP or RRIF of the survivor, the payment is deemed to be a transfer from the FHSA to the extent that it does not exceed the survivor's amount and it is so designated jointly by the legal representative and the survivor in prescribed form filed with the Minister;

    • (b) if a payment is made from the estate to the survivor, the payment is deemed for the purposes of subsection (14) to have been received by the survivor as a beneficiary to the extent that it does not exceed the survivor's amount and it is so designated jointly by the legal representative and the survivor in prescribed form filed with the Minister; and

• (4) Subsections (1) to (3) are deemed to have come into force on April 1, 2023.

• 70 (1) Section 147.4 of the Act is amended by adding the following after subsection (3):

  • Marginal note:Application of subsection (5)

    (4) Subsection (5) applies to an amount transferred from an annuity contract described in subsection (1) if

    • (a) the conditions set out in paragraphs (1)(a) to (e) were satisfied when the annuitant acquired an interest in the annuity contract; and

    • (b) the transfer is made as a consequence of

      • (i) an individual who is a spouse or common-law partner or former spouse or common-law partner of the annuitant becoming entitled to an interest in the annuity contract under a decree, order or judgment of a competent tribunal, or under a written agreement, relating to a division of property between the annuitant and the individual, in settlement of rights arising out of, or on a breakdown of, their marriage or common-law partnership, or

      • (ii) a provision of the Pension Benefits Standards Act, 1985 or a similar law of a province that permits the annuitant to commute all or part of their interest in the annuity contract.

  • Marginal note:Treatment of amount transferred

    (5) Despite paragraph (1)(g), if this subsection applies to an amount transferred from an annuity contract described in subsection (1), the amount transferred is deemed for the purposes of section 147.3

    • (a) not to be transferred from the annuity contract; and

    • (b) to be transferred from the registered pension plan described in subsection (1) to fully or partially satisfy the individual's entitlement to benefits under the benefit provision (as defined in subsection 8500(1) of the Income Tax Regulations) under which the individual's entitlement to benefits was satisfied by the acquisition of the interest in the annuity contract.

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

• 71 (1) Paragraphs 150(1.2)(a) to (c) of the Act are replaced by the following:

  • (a) had been in existence for less than three months;

  • (b) holds assets with a total fair market value that does not exceed $50,000 throughout the year;

  • (b.1) meets the following conditions:

    • (i) each trustee is an individual,

    • (ii) each beneficiary is an individual and is related to each trustee, and

    • (iii) the total fair market value of the property of the trust does not exceed $250,000 throughout the year and the only assets held by the trust throughout the year are one or more of

      • (A) money,

      • (B) a guaranteed investment certificate issued by a Canadian bank or trust company incorporated under the laws of Canada or of a province,

      • (C) a debt obligation described in paragraph (a) of the definition fully exempt interest in subsection 212(3),

      • (D) debt obligations issued by

        • (I) a corporation, mutual fund trust or limited partnership the shares or units of which are listed on a designated stock exchange in Canada,

        • (II) a corporation the shares of which are listed on a designated stock exchange outside Canada, or

        • (III) an authorized foreign bank that are payable at a branch in Canada of the bank,

      • (E) a share, debt obligation or right listed on a designated stock exchange,

      • (F) a share of the capital stock of a mutual fund corporation,

      • (G) a unit of a mutual fund trust,

      • (H) an interest in a related segregated fund trust (within the meaning assigned by paragraph 138.1(1)(a)),

      • (I) an interest as a beneficiary under a trust, all the units of which are listed on a designated stock exchange,

      • (J) personal-use property of the trust, or

      • (K) a right to receive income or gains on property described in clauses (A) to (J);

  • (c) is required under the relevant rules of professional conduct or the laws of Canada or a province to hold funds for the purposes of an activity that is regulated under those rules or laws, provided

    • (i) the trust is not maintained as a separate trust for a particular client or clients, or

    • (ii) the only assets held by the trust throughout the year are money with a value that does not exceed $250,000;

• (2) Subparagraph 150(1.2)(b.1)(ii) of the Act, as enacted by subsection (1), is replaced by the following:

  • (ii) each beneficiary is

    • (A) an individual (other than a trust) and is related to each trustee, or

    • (B) a graduated rate estate (or would be a graduated rate estate in the year if the estate had properly designated itself as a graduated rate estate) of an individual who was a beneficiary described in clause (A) in the year of the individual's death,

• (3) Clauses 150(1.2)(b.1)(iii)(A) and (B) of the Act, as enacted by subsection (1), are replaced by the following:

  • (A) money, including deposits in a Canadian financial institution as defined in subsection 270(1),

  • (B) a guaranteed investment certificate issued by a Canadian bank, trust company or credit union incorporated under the laws of Canada or of a province,

• (4) Subparagraph 150(1.2)(b.1)(iii) of the Act, as enacted by subsection (1), is amended by striking out "or" at the end of clause (J), by adding "or" at the end of clause (K) and by adding the following after clause (K):

  • (L) an exempt policy (as defined in subsection 12.2(11)) issued by a Canadian life insurer, the fair market value of which is to be determined by its cash surrender value;

• (5) Subparagraph 150(1.2)(c)(ii) of the Act, as enacted by subsection (1), is replaced by the following:

  • (ii) the only assets held by the trust throughout the year are assets described in clause (b.1)(iii)(A) or (B) with a total fair market value that does not exceed $250,000;

• (6) Paragraph 150(1.2)(j) of the Act is replaced by the following:

  • (j) is, for greater certainty, a graduated rate estate, or would be a graduated rate estate in the year if the estate had properly designated itself as a graduated rate estate;

• (7) Paragraph 150(1.2)(n) of the Act is amended by striking out "or" at the end of subparagraph (x), by adding "or" at the end of subparagraph (xi) and by adding the following after subparagraph (xi):

  • (xii) a retirement compensation arrangement the primary purpose of which is to provide annual or more frequent periodic retirement benefits to supplement the benefits provided out of or under one or more registered pension plans, registered retirement savings plans, deferred profit sharing plans or pooled registered pension plans;

• (8) Subsection 150(1.2) of the Act is amended by striking out "or" at the end of paragraph (o), by adding "or" at the end of paragraph (p) and by adding the following after paragraph (p):

  • (q) is established for the purpose of complying with a statute of Canada or a province and the person or persons acting as trustee of the trust hold the property in trust for a specified purpose.

• (9) Subsection 150(1.2) of the Act, as amended by subsection (8), is amended by striking out "or" at the end of paragraph (p), by adding "or" at the end of paragraph (q) and by adding the following after paragraph (q):

  • (r) is an employee ownership trust.

• (10) Subsection 150(1.3) of the Act is repealed.

• (11) Section 150 of the Act is amended by adding the following after subsection (1.2):

  • Marginal note:Deemed trust

    (1.3) For the purpose of this section and section 204.2 of the Income Tax Regulations,

    • (a) a trust includes an express trust that would not otherwise be considered a trust under the Act if, under the trust,

      • (i) one or more persons (in this subsection and subsection (1.31) referred to as a "legal owner") have legal ownership of property that is held for the use of, or benefit of, one or more persons or partnerships, and

      • (ii) the legal owner can reasonably be considered to act as agent for the persons or partnerships who have the use of, or benefit of, the property;

    • (b) each person that is a legal owner of a trust that is described under paragraph (a) is considered to be a trustee of the trust; and

    • (c) each person or partnership that has the use or benefit of property under a trust that is described under paragraph (a) is considered to be a beneficiary of the trust.

  • Marginal note:Deemed trust — exceptions

    (1.31) Subsection (1.3) does not apply to a trust for a taxation year if

    • (a) each person or partnership that is considered to be a beneficiary under paragraph (1.3)(c) at any time in the year is also a legal owner of the property referred to in that paragraph at that time and there are no legal owners that are not considered to be beneficiaries;

    • (b) the legal owners are individuals that are related persons and the property is real property or immovable that would be the principal residence of one or more of the legal owners for the year if those legal owners had designated the property for the year under the definition principal residence in section 54;

    • (c) the legal owner is an individual and the property is real property or immovable that

      • (i) is held for the use of, or benefit of, the legal owner's spouse or common-law partner during the year, and

      • (ii) would be the legal owner's principal residence for the year if the legal owner had designated the property for the year under the definition principal residence in section 54;

    • (d) under the trust

      • (i) the property is held throughout the year solely for the use of, or benefit of, a partnership,

      • (ii) each legal owner is a partner of the partnership, and

      • (iii) a member of the partnership is, or but for subsection 220(2.1) would be, required under section 229 of the Income Tax Regulations to make an information return for a fiscal period of the partnership that includes December 31 of the taxation year;

    • (e) the legal owner holds the property as required by an order of a court;

    • (f) all or substantially all of the property under the trust is Canadian resource property (as defined in subsection 66(15)) that is held solely for the use of, or benefit of, one or more persons or partnerships each of which is

      • (i) a corporation, the shares of which are listed on a designated stock exchange,

      • (ii) a corporation that is controlled by one or more corporations described in subparagraph (i),

      • (iii) a partnership if

        • (A) a majority-interest partner of the partnership is a corporation described in subparagraph (i) or (ii), or

        • (B) a majority-interest group of partners (as defined in subsection 251.1(3)) of the partnership consists of two or more corporations described in subparagraph (i) or (ii), or

      • (iv) a partnership if

        • (A) a majority-interest partner of the partnership is a person or partnership described in subparagraphs (i) to (iii), or

        • (B) a majority-interest group of partners (as defined in subsection 251.1(3)) of the partnership consists of two or more persons or partnerships described in subparagraphs (i) to (iii);

    • (g) under the trust

      • (i) property is held exclusively for the use of, or benefit of, one or more persons described under subsection 149(1),

      • (ii) each legal owner is a person described under subsection 149(1), and

      • (iii) the property consists solely of funds received from His Majesty in right of Canada or a province; or

    • (h) the trustee is a registered securities dealer acting in that capacity or a trust company regulated under the laws of Canada or a Province acting as an investment entity (as defined in subsection 270(1)), if

      • (i) at any time, the only property in the trust is described in clauses (1.2)(b.1)(iii)(A) to (I), and

      • (ii) an information return is issued in respect of all of the income and gains of the trust to all of the beneficiaries of the trust.

  • Marginal note:Related persons

    (1.32) For the purposes of this section,

    • (a) a related person includes an aunt, uncle, niece and nephew; and

    • (b) a person is related to himself or herself.

• (12) Subsection 150(1.4) of the Act is replaced by the following:

  • Marginal note:Solicitor-client privilege

    (1.4) For greater certainty, subsections (1.1) and (1.2) do not require the disclosure of information that is subject to solicitor-client privilege.

• (13) Subsection 150(1.4) of the Act, as enacted by subsection (12), is replaced by the following:

  • Marginal note:Solicitor-client privilege

    (1.4) For greater certainty, subsections (1.1) to (1.3) do not require the disclosure of information that is subject to solicitor-client privilege.

• (14) Subsections (1), (6), (8), (10) and (12) apply to taxation years that end after December 30, 2024 and before December 31, 2025.

• (15) Subsections (2) to (5), (7) and (9) apply to taxation years that end after December 30, 2025.

• (16) Subsections (11) and (13) apply to taxation years that end after December 30, 2026.

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

  • (b) the amount of tax, if any, deemed by any of subsections 120(2) or (2.2), 122.5(3) to (3.003), 122.51(2), 122.7(2) or (3), 122.72(1), 122.8(4), 122.9(2), 122.91(1), 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1), 127.41(3), 127.42(2) or (3), 127.44(2), 127.45(2), 127.48(2), 127.49(2) 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(1)(b) of the Act, as enacted by subsection (1), is replaced by the following:

  • (b) the amount of tax, if any, deemed by any of subsections 120(2) or (2.2), 122.5(3) to (3.003), 122.51(2), 122.7(2) or (3), 122.72(1), 122.8(4), 122.9(2), 122.91(1), 122.92(3), 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1), 127.41(3), 127.42(2) or (3), 127.44(2), 127.45(2), 127.48(2), 127.49(2) or 210.2(3) or (4) to be paid on account of the taxpayer's tax payable under this Part for the year.

• (3) Paragraph 152(1)(b) of the Act, as enacted by subsection (2), is replaced by the following:

  • (b) the amount of tax, if any, deemed by any of subsections 120(2) or (2.2), 122.5(3) to (3.003), 122.51(2), 122.7(2) or (3), 122.72(1), 122.8(4), 122.9(2), 122.91(1), 122.92(3), 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1), 127.41(3), 127.42(2) or (3), 127.44(2), 127.45(2), 127.48(2), 127.49(2), 127.491(2) or 210.2(3) or (4) to be paid on account of the taxpayer's tax payable under this Part for the year.

• (4) Paragraph 152(1)(b) of the Act, as enacted by subsection (3), is replaced by the following:

  • (b) the amount of tax, if any, deemed by any of subsections 120(2) or (2.2), 122.5(3) to (3.003), 122.51(2), 122.7(2) or (3), 122.72(1), 122.8(4), 122.9(2), 122.91(1), 122.92(3), 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1), 127.41(3), 127.42(2) or (3), 127.421(2) or (3), 127.44(2), 127.45(2), 127.48(2), 127.49(2), 127.491(2) or 210.2(3) or (4) to be paid on account of the taxpayer's tax payable under this Part for the year.

• (5) Paragraph 152(1)(b) of the Act, as enacted by subsection (4), is replaced by the following:

  • (b) the amount of tax, if any, deemed by any of subsections 120(2) or (2.2), 122.5(3) to (3.003), 122.51(2), 122.7(2) or (3), 122.72(1), 122.8(4), 122.9(2), 122.91(1), 122.92(3), 122.93(2), 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1), 127.41(3), 127.42(2) or (3), 127.421(2) or (3), 127.44(2), 127.45(2), 127.48(2), 127.49(2), 127.491(2) or 210.2(3) or (4) to be paid on account of the taxpayer's tax payable under this Part for the year.

• (6) Paragraph 152(1.2)(d) of the Act is replaced by the following:

  • (d) the Minister determines the amount deemed by any of subsections 122.5(3) to (3.003), 122.72(1), 122.8(4) or 127.421(2) or (3) to have been paid by a person for a taxation year to be nil, subsection (2) does not apply to the determination unless the person requests a notice of determination from the Minister.

• (7) Section 152 of the Act is amended by adding the following after subsection (3.4):

  • Marginal note:Clean electricity — notice of determination

    (3.5) On receipt of a prescribed form referred to in subsection 127.491(2) from an entity that is described in any of paragraphs (b) to (f) of the definition qualifying corporation in subsection 127.491(1), the Minister shall, with all due dispatch, determine the amount of the entity's clean electricity investment tax credit under paragraph 127.491(2)(b), or determine that there is no such amount, and shall send a notice of the determination to the entity.

• (8) Subsection 152(3.5) of the Act, as enacted by subsection (7), is replaced by the following:

  • Marginal note:Clean electricity — notice of determination

    (3.5) On receipt of a prescribed form referred to in subsection 127.491(2) from an entity that is described in any of paragraphs (b) to (h) of the definition qualifying corporation in subsection 127.491(1), the Minister shall, with all due dispatch, determine the amount of the entity's clean electricity investment tax credit under paragraph 127.491(2)(b), or determine that there is no such amount, and shall send a notice of the determination to the entity.

• (9) Subsection 152(3.5) of the Act, as enacted by subsection (8), is replaced by the following:

  • Marginal note:Clean electricity — notice of determination

    (3.5) On receipt of a prescribed form referred to in subsection 127.491(2) from an entity that is described in any of paragraphs (b) to (i) of the definition qualifying corporation in subsection 127.491(1), the Minister shall, with all due dispatch, determine the amount of the entity's clean electricity investment tax credit under paragraph 127.491(2)(b), or determine that there is no such amount, and shall send a notice of the determination to the entity.

• (10) Subsection 152(4) of the Act is amended by adding the following after paragraph (b.94):

  • (b.941) the assessment, reassessment or additional assessment is made before the day that is 36 months after the end of the normal reassessment period for the taxpayer in respect of the year and is made in respect of a disposition, in the year, of shares of the capital stock of a corporation in respect of which the taxpayer claimed a deduction under subsection 110.62(2);

• (11) Subsection 152(4) of the Act, as amended by subsection (10), is amended by adding the following after paragraph (b.941):

  • (b.95) a prescribed form that is required to be filed by the taxpayer, or a partnership of which the taxpayer is a member, under subsection 127.491(24) or (25) is not filed as and when required, and the assessment, re-assessment or additional assessment is made in relation to transactions or events described in any of subsections 127.491(16), (17), (22), (23) or (26) to (30) before the day that is

    • (i) in the case of a taxpayer described in paragraph (3.1)(a), four years after the day on which the form is filed, and

    • (ii) in any other case, three years after the day on which the form is filed;

• (12) Paragraph 152(4.01)(b) of the Act is amended by striking out "or" at the end of subparagraph (xiii), by adding "or" at the end of subparagraph (xiv) and by adding the following after subparagraph (xiv):

  • (xv) the transactions or events referred to in paragraph (4)(b.95);

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

  • (b) redetermine the amount, if any, deemed by any of subsections 120(2) or (2.2), 122.5(3) to (3.003), 122.51(2), 122.7(2) or (3), 122.8(4), 122.9(2), 122.91(1), 122.92(3), 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.

• (14) Paragraph 152(4.2)(b) of the Act, as enacted by subsection (13), is replaced by the following:

  • (b) redetermine the amount, if any, deemed by any of subsections 120(2) or (2.2), 122.5(3) to (3.003), 122.51(2), 122.7(2) or (3), 122.8(4), 122.9(2), 122.91(1), 122.92(3), 122.93(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 or deemed by subsection 122.61(1) to be an overpayment on account of the taxpayer's liability under this Part for the year.

• (15) Subsection (1) applies to the 2021 and subsequent taxation years.

• (16) Subsections (2) and (13) are deemed to have come into force on January 1, 2023.

• (17) Subsections (3), (7), (11) and (12) are deemed to have come into force on April 16, 2024.

• (18) Subsections (4) and (6) are deemed to have come into force on June 20, 2024.

• (19) Subsections (5) and (14) apply to the 2026 and subsequent taxation years.

• (20) Subsection (8) is deemed to have come into force on December 16, 2024.

• (21) Subsection (9) is deemed to have come into force on November 4, 2025.

• (22) Subsection (10) is deemed to have come into force on January 1, 2024.

• 73 (1) Paragraph 153(1)(b) of the Act is replaced by the following:

  • (b) a superannuation or pension benefit, other than an amount described in clause 56(1)(a)(i)(H),

• (2) Paragraph 153(1)(j) of the Act is replaced by the following:

  • (j) a payment out of or under an RRSP or a plan referred to in subsection 146(12) as an "amended plan", other than an amount described in paragraph (c.2) of the definition benefit in subsection 146(1),

• (3) Paragraph 153(1)(l) of the Act is replaced by the following:

  • (l) a payment out of or under a RRIF or a fund referred to in subsection 146.3(11) as an "amended fund", other than an amount described in paragraph 146.3(5)(e),

• (4) Section 153 of the Act is amended by adding the following after subsection (7):

  • Marginal note:Non-resident service providers

    (8) The Minister may

    • (a) waive the requirement under subsection (1) to deduct or withhold amounts from payments described in paragraph (1)(g) to a non-resident person during a period of time specified by the Minister if it is established in a manner acceptable to the Minister that

      • (i) the payments

        • (A) are income of the non-resident person from a business that is

          • (I) a treaty-protected business, or

          • (II) not carried on in Canada, or

        • (B) would not be included in computing the income of the non-resident person because of paragraph 81(1)(c), and

      • (ii) the conditions established by the Minister are met; and

    • (b) revoke a waiver made under paragraph (a).

  • Marginal note:Class of non-residents

    (9) A waiver made by the Minister under paragraph (8)(a) may apply in respect of a class of non-resident persons specified by the Minister.

• (5) Subsections (1) to (3) apply in respect of amounts paid to an unclaimed property authority after December 31, 2026.

• 74 (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) or (2.1), 127.1(1), 127.41(3), 127.44(2), 127.45(2), 127.48(2), 127.49(2) or 127.491(2) 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) or (2.1), 127.1(1), 127.41(3), 127.44(2), 127.45(2), 127.48(2), 127.49(2) or 127.491(2) 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 April 16, 2024.

• 75 (1) Section 160 of the Act is amended by adding the following after subsection (1.6):

  • Marginal note:Joint and several, or solidary, liability — qualifying cooperative conversions

    (1.7) If a purchaser corporation and a taxpayer have jointly elected under paragraph 110.62(1)(e) in respect of a disposition of shares of the capital stock of a corporation and paragraph 110.62(4)(a) applies, the subject corporation, the purchaser corporation and the taxpayer are jointly and severally, or solidarily, liable for the tax payable by the taxpayer under this Part to the extent that the tax payable by the taxpayer is greater than it would have been if the disposition had satisfied the conditions set out in section 110.62.

• (2) Subsection (1) is deemed to have come into force on January 1, 2024.

• 76 (1) Paragraph 160.1(1)(b) of the Act is replaced by the following:

  • (b) the taxpayer shall pay to the Receiver General interest at the prescribed rate on the excess (other than any portion of the excess that can reasonably be considered to arise as a consequence of the operation of section 122.5, 122.61, 122.72, 122.8 or 127.421) from the day it became payable to the date of payment.

• (2) Subsection 160.1(3) of the Act is replaced by the following:

  • Marginal note:Assessment

    (3) The Minister may at any time assess a taxpayer in respect of any amount payable by the taxpayer because of any of subsections (1) to (1.2) or for which the taxpayer is liable because of subsection (2.1) or (2.2), and the provisions of this Division (including, for greater certainty, the provisions in respect of interest payable) apply, with any modifications that the circumstances require, in respect of an assessment made under this section, as though it were made under section 152 in respect of taxes payable under this Part, except that no interest is payable on an amount assessed in respect of an excess referred to in subsection (1) that can reasonably be considered to arise as a consequence of the operation of section 122.5, 122.61, 122.72, 122.8 or 127.421.

• (3) Subsections (1) and (2) are deemed to have come into force on June 20, 2024.

• 77 (1) The portion of subsection 160.2(4) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Rules applicable

    (4) If a taxpayer and an annuitant have, by virtue of subsection (1) or (2) become jointly and severally, or solidarily, liable in respect of part or all of a liability of the annuitant under this Act, the following rules apply:

• (2) Paragraph 160.2(4)(b) of the Act is replaced by the following:

  • (b) a payment by the annuitant on account of the annuitant's liability discharges the taxpayer's liability only to the extent that the payment operates to reduce the annuitant's liability to an amount less than the amount in respect of which the taxpayer was, by subsection (1) or (2), as the case may be, made jointly and severally, or solidarily, liable.

• (3) Subsections (1) and (2) are deemed to have come into force on April 1, 2023.

• 78 (1) Subsection 163(2) of the Act is amended by adding the following after paragraph (c.6):

  • (c.7) the amount, if any, by which

    • (i) the amount that would be deemed by subsection 122.93(2) to have been paid for the year by the person if that amount were calculated by reference to the person's claim for the year under that subsection

    exceeds

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

• (2) Paragraph 163(2)(d.1) of the Act is replaced by the following:

  • (d.1) the amount, if any, by which

    • (i) the amount that would be deemed by subsection 127.44(2), 127.45(2), 127.48(2), 127.49(2) or 127.491(2), as the case may be, to be paid for the year by the person if that amount were calculated by reference to the information provided in the return or form filed for the year pursuant to that subsection

    exceeds

    • (ii) the amount that is deemed by subsection 127.44(2), 127.45(2), 127.48(2), 127.49(2) or 127.491(2), as the case may be, to be paid for the year by the person,

• (3) Subparagraph 163(5)(a)(i) of the Act is replaced by the following:

  • (i) makes — or participates in, assents to or acquiesces in, the making of — a false statement or omission in a return of income of a trust that is not subject to one of the exceptions listed in paragraphs 150(1.2)(a) to (r) for a taxation year, or

• (4) Subsection (1) applies to the 2026 and subsequent taxation years.

• (5) Subsection (2) is deemed to have come into force on April 16, 2024.

• (6) Subsection (3) applies to taxation years that end after December 30, 2025.

• 79 (1) Subsections 164(6) and (6.1) of the Act are replaced by the following:

  • Marginal note:Disposition by legal representative of deceased

    (6) If in the course of administering the graduated rate estate of a taxpayer, the taxpayer's legal representative has, in a taxation year (in this subsection referred to as the "particular year") that is within the first three taxation years of the estate,

    • (a) disposed of capital property of the estate so that the total of all amounts each of which is a capital loss from the disposition of a property in the particular year exceeds the total of all amounts each of which is a capital gain from the disposition of a property in the particular year, or

    • (b) disposed of all of the depreciable property of a prescribed class of the estate so that the undepreciated capital cost to the estate of property of that class at the end of the particular year is, by virtue of subsection 20(16) or any regulation made under paragraph 20(1)(a), deductible in computing the income of the estate for the particular year,

    despite any other provision of this Act, the following rules apply:

    • (c) such parts of one or more capital losses of the estate from the disposition of properties in the particular year (the total of which is not to exceed the excess referred to in paragraph (a)) as the legal representative so elects, in prescribed form and manner on or before the filing-due date for the particular taxation year of the estate, are deemed (except for the purpose of subsection 112(3) and this paragraph) to be capital losses of the deceased taxpayer from the disposition of the properties by the taxpayer in the taxpayer's last taxation year and not to be capital losses of the estate from the disposition of those properties,

    • (d) such part of the amount of any deduction described in paragraph (b) (not exceeding the amount that, but for this subsection, would be the total of the non-capital loss and the farm loss of the estate for the particular year) as the legal representative so elects, in prescribed form and manner on or before the filing-due date for the particular year of the estate, is deductible in computing the income of the taxpayer for the taxpayer's last taxation year and is not deductible in computing any loss of the estate,

    • (e) the legal representative shall, at or before the time prescribed for filing the election referred to in paragraphs (c) and (d), file a prescribed form amending the return of income of the deceased taxpayer for the taxpayer's last taxation year to give effect to the rules in those paragraphs, and

    • (f) in computing the taxable income of the deceased taxpayer for a taxation year preceding the taxpayer's last taxation year, no amount may be deducted in respect of an amount referred to in paragraph (c) or (d).

  • Marginal note:Realization of deceased employees' options

    (6.1) Despite any other provision of this Act, if a right to acquire securities (as defined in subsection 7(7)) under an agreement in respect of which a benefit was deemed by paragraph 7(1)(e) to have been received by a taxpayer (in this subsection referred to as the "right") is exercised or disposed of by the taxpayer's legal representative in a taxation year that is within the first three taxation years of the graduated rate estate of the taxpayer and the representative so elects in prescribed form and manner on or before the filing-due date for the taxation year of the estate,

    • (a) the amount, if any, by which

      • (i) the amount of the benefit deemed by paragraph 7(1)(e) to have been received by the taxpayer in respect of the right

      exceeds the total of

      • (ii) the amount, if any, by which the value of the right immediately before the time it was exercised or disposed of exceeds the amount, if any, paid by the taxpayer to acquire the right, and

      • (iii) where in computing the taxpayer's taxable income for the taxation year in which the taxpayer died an amount was deducted under paragraph 110(1)(d) in respect of the benefit deemed by paragraph 7(1)(e) to have been received by the taxpayer in that year by reason of paragraph 7(1)(e) in respect of that right, 1/2 of the amount, if any, by which the amount determined under subparagraph (i) exceeds the amount determined under subparagraph (ii),

      shall be deemed to be a loss of the taxpayer from employment for the taxpayer's last taxation year;

    • (b) there shall be deducted in computing the adjusted cost base to the estate of the right at any time the amount of the loss that would be determined under paragraph (a) if that paragraph were read without reference to subparagraph (a)(iii); and

    • (c) the legal representative shall, at or before the time prescribed for filing the election under this subsection, file a prescribed form amending the return of income of the taxpayer for the taxpayer's last taxation year to give effect to paragraph (a).

• (2) Subsection (1) applies to taxation years of

  • (a) individuals who died on or after August 12, 2024; and

  • (b) graduated rate estates of individuals who died on or after August 12, 2024.

• 80 (1) Subsection 183.1(7) of the Act is replaced by the following:

  • Marginal note:Non-application — subsections 110.6(8), 110.61(8) and 110.62(8)

    (7) If this section has been applied in respect of an amount, subsections 110.6(8), 110.61(8) and 110.62(8) do not apply to the capital gain in respect of which the amount formed all or a part of the proceeds of disposition.

• (2) Subsection (1) is deemed to have come into force on January 1, 2024.

• 81 (1) Subparagraph (a)(ii) of the definition qualifying issuance in subsection 183.3(1) of the Act is replaced by the following:

  • (ii) a bond, debenture, note or other security (other than equity) of the covered entity that was issued solely for cash consideration, or that was issued in an exchange described in paragraph (c), the terms of which confer on the holder the right to make the exchange, or

• (2) Paragraph (c) of the definition qualifying issuance in subsection 183.3(1) of the Act is replaced by the following:

  • (c) to a person or partnership, with which the covered entity deals at arm's length and is not affiliated, in exchange for property used in an active business carried on by the covered entity or by a specified affiliate of the covered entity. (émission admissible)

• (3) Subparagraph (a)(ii) of the definition reorganization transaction in subsection 183.3(1) of the Act is replaced by the following:

  • (ii) another entity that is related to the covered entity immediately before the exchange and is a covered entity for its taxation year that includes the exchange, or

• (4) Paragraph (c) of the definition reorganization transaction in subsection 183.3(1) of the Act is replaced by the following:

  • (c) on a winding-up

  • (i) of the covered entity during which all or substantially all of the property owned by the covered entity is distributed to the equity holders of the covered entity, or

  • (ii) to which subsection 88(1) applies;

• (5) The definition reorganization transaction in subsection 183.3(1) of the Act is amended by striking out "or" at the end of paragraph (g) and by adding the following after that paragraph:

  • (g.1) at the demand of a holder of the equity, in accordance with the conditions of the issued units of the trust, for an amount that does not exceed the portion of the net asset value (as defined in subsection 132(4)) of the trust attributable to that equity at the time of the redemption, acquisition or cancellation, if the covered entity is a trust that has one or more classes of units in continuous distribution; or

• (6) The portion of paragraph (a) of the description of B in subsection 183.3(2) of the Act before the formula is replaced by the following:

  • (a) if equity of the covered entity (other than substantive debt) is redeemed, acquired or cancelled in the taxation year by the covered entity, pursuant to a reorganization transaction described in paragraph (a) or (b) of that definition and any portion of the consideration received by a holder for the equity is not equity consideration described in paragraph (a) or (b) of the definition reorganization transaction, the amount determined by the formula

• (7) The portion of subsection 183.3(5) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Similar transactions

    (5) For the purposes of subsections (1) and (2), if a specified affiliate of a covered entity acquires equity of the covered entity, the equity is deemed to be acquired by the covered entity unless the specified affiliate is

• (8) Subsections (1) to (7) are deemed to have come into force on January 1, 2024.

• 82 (1) Paragraph 183.4(1)(c) of the Act is replaced by the following:

  • (c) if the entity is a partnership, every member of the partnership must — on or before the day on which a return is, or would be if the entity were a SIFT partnership, required to be filed for the year under section 229 of the Income Tax Regulations — file with the Minister a return for the year under this Part in prescribed form.

• (2) Section 183.4 of the Act is amended by adding the following after subsection (1):

  • Marginal note:Authority to file return for partnership

    (1.1) For the purposes of paragraph (1)(c), if, in respect of a taxation year of a partnership, a particular member of the partnership has authority to act for the partnership,

    • (a) if the particular member has filed a return as required by this Part for the year, each other person who was a member of the partnership during the year is deemed to have filed the return; and

    • (b) a return that has been filed by any other member of the partnership for the year is not valid and is deemed not to have been filed by any member of the partnership.

• (3) Subsections (1) and (2) are deemed to have come into force on January 1, 2024.

• 83 (1) Subparagraphs (d)(i) to (iii) of the definition exempt contribution in subsection 207.01(1) of the Act are replaced by the following:

  • (i) the amount by which the amount of the survivor payment exceeds the total of all other contributions designated by the survivor in relation to the survivor payment, and

  • (ii) if the individual had, immediately before the individual's death, an excess TFSA amount or if payments described in paragraph (b) are made to more than one survivor of the individual, nil or the greater amount, if any, allowed by the Minister in respect of the contribution. (cotisation exclue)

• (2) Subsection (1) comes into force or is deemed to have come into force on January 1, 2026.

• 84 (1) Subsection 207.04(3) of the Act is replaced by the following:

  • Marginal note:Both prohibited and non-qualified investment

    (3) For the purposes of this section and subsections 146(10.1), 146.1(5), 146.2(6), 146.3(9), 146.4(5), 146.6(3) and 207.01(6), if a trust governed by a registered plan holds property at any time that is, for the trust, both a prohibited investment and a non-qualified investment, the property is deemed at that time not to be a non-qualified investment, but remains a prohibited investment, for the trust.

• (2) Section 207.04 of the Act is amended by adding the following after subsection (6):

  • Marginal note:Securities lending arrangements

    (7) For the purposes of this section and subsections 146(10.1), 146.1(5), 146.2(6), 146.3(9), 146.4(5) and 146.6(3), a right received by a lender under a securities lending arrangement is deemed not to be a non-qualified investment for a trust if

    • (a) the security lent or transferred under the arrangement is described in paragraph (d) of the definition qualified investment in section 204;

    • (b) the lender under the arrangement is the trust;

    • (c) the borrower under the arrangement is a registered securities dealer resident in Canada;

    • (d) it is reasonable to conclude that the controlling individual of the registered plan that governs the trust neither knew nor ought to have known that the security lent or transferred under the arrangement (or property substituted for it) would be, while lent or transferred under the arrangement, received by a person who does not deal at arm's length with the controlling individual of the registered plan that governs the trust;

    • (e) the trust has a right under the arrangement to require the borrower to transfer or return an identical security (within the meaning assigned by paragraph (b) of the definition securities lending arrangement in subsection 260(1)) at any time throughout the period described in paragraph (c) of that definition;

    • (f) property that is described in paragraph (a) or (b) of the definition qualified investment in section 204 that is of equivalent value to the security lent under the arrangement is held in trust for the benefit of the lender and is to be distributed to the lender in the event that an identical security (within the meaning assigned by paragraph (b) of the definition securities lending arrangement in subsection 260(1)) is not transferred or returned to the lender under the arrangement; and

    • (g) the controlling individual of the registered plan that governs the trust is provided written disclosure of the arrangement and consents to the arrangement prior to the time it is entered into.

• (3) Subsection (1) is deemed to have come into force on April 1, 2023.

• (4) Subsection (2) is deemed to have come into force on January 1, 2023.

• 85 (1) The portion of subsection 211.92(10) of the English version of the Act before the formula is replaced by the following:

  • Marginal note:Refurbishment property disposition

    (10) Except where subsection (11) applies, if at any time in a particular taxation year during the total CCUS project review period of a CCUS project a taxpayer disposes of or removes from Canada a property for which the taxpayer's qualified CCUS expenditure resulted in the determination of a CCUS refurbishment tax credit for the year or a previous taxation year, then there shall be added to the tax otherwise payable by the taxpayer under this Part for the year the amount determined by the formula

• (2) Subsection 211.92(12) of the Act is replaced by following:

  • Marginal note:Partnerships

    (12) Subject to section 127.47, if subsection 127.44(11) has at any time applied to add an amount in computing the CCUS tax credit of a current or former member of a partnership, then for the purposes of this Part, subsections (2) to (11) shall apply to determine amounts in respect of the partnership as if the partnership were a taxable Canadian corporation, its fiscal period were its taxation year and it had deducted all of the CCUS tax credits that were previously added in computing the CCUS tax credit of any member of the partnership under subsection 127.44(2) because of the application of subsection 127.44(11) in respect of its partnership interest.

• (3) Subsection 211.92(15) of the Act is replaced by the following:

  • Marginal note:Joint and several, or solidary, liability

    (15) Each current or former member of a partnership is jointly and severally, or solidarily, liable for any portion of the amount of tax — determined because of subsection (12) in respect of the partnership for a fiscal period — that is not added to the tax payable

    • (a) of a qualifying taxpayer under subsection (13); or

    • (b) of a taxable Canadian corporation because of subsection (14) and paid by the corporation by its filing-due date for its taxation year that includes the end of the fiscal period.

  • Marginal note:Former member liability

    (16) If a particular taxpayer was, at the time that an amount is determined because of subsection (12) in respect of the partnership for a taxation year, no longer a member of the partnership, the particular taxpayer's liability for tax because of subsection (15) is limited to the total of all amounts each of which is an amount determined for the particular taxpayer under subsection 127.44(2) because of its membership in the partnership.

• (4) Subsections (1) to (3) are deemed to have come into force on January 1, 2022.

• 86 (1) Subsection 211.93(3) of the Act is replaced by the following:

  • Marginal note:Shared filing

    (3) If more than one person is required by subsection (1) to submit a knowledge sharing report in respect of a knowledge sharing CCUS project, the submission with full and accurate disclosure by any one of such persons of the report is deemed to have been made by each person to whom subsection (1) applies in respect of the report.

• (2) Subsection (1) is deemed to have come into force on January 1, 2022.

• 87 (1) Paragraph 212(1)(i) of the Act is replaced by the following:

  • Marginal note:Restrictive covenant amount

    (i) an amount that would, if the non-resident person had been resident in Canada throughout the taxation year in which the amount was received or receivable, be required by paragraph 56(1)(m) or subsection 56.4(2) to be included in computing the non-resident person's income for the taxation year, except an amount deemed to be a payment of interest and referred to in subsection 214(15);

• (2) Subsection (1) is deemed to have come into force on August 12, 2024.

• 88 (1) The portion of paragraph 212.1(6)(b) of the Act before subparagraph (i) is replaced by the following:

  • (b) for the purposes of subsections (1) and (1.1) and paragraph (c), if at any time a conduit disposes of shares — other than a disposal of shares by a non-resident trust or by a trust resident in Canada that is, at that time, a graduated rate estate of an individual (if the trust acquired the shares on and as a consequence of the individual's death and the individual was, immediately before their death, resident in Canada) — of the capital stock of a corporation resident in Canada to a purchaser, then

• (2) Subsection (1) applies to dispositions that occur after February 26, 2018.

• (3) A written application made by a person under subsection 227(6) of the Act in respect of an amount that has been paid to the Receiver General is deemed to be filed on time if

  • (a) the application is filed with the Minister of National Revenue within 180 days after the day on which this Act receives royal assent; and

  • (b) the person is no longer liable to pay the amount as a result of the enactment by subsection (1) of the portion of paragraph 212.1(6)(b) of the Act before subparagraph (i).

• 89 (1) Subsection 214(15) of the Act is amended by striking out "and" at the end of paragraph (a) and by replacing paragraph (b) with the following:

  • (b) where a non-resident person has entered into an agreement under the terms of which the non-resident person agrees to lend money, or to make money available, to a person resident in Canada, any amount paid or credited as consideration for so agreeing to lend money or to make money available is deemed to be a payment of interest; and

  • (c) where a non-resident person has entered into an agreement under the terms of which the non-resident person agrees to the rescheduling or restructuring of a debt obligation of a person resident in Canada, and the rescheduling or restructuring, as the case may be, provides for the modification of the terms or conditions of the debt obligation or the conversion or substitution of the debt obligation to or with a share or another debt obligation, any amount paid or credited as consideration for so agreeing is deemed to be a payment of interest.

• (2) Subsection (1) is deemed to have come into force on August 12, 2024.

• 90 (1) Section 215 of the Act is amended by adding the following after subsection (1.1):

  • Marginal note:Exception — residential tenants

    (1.2) Subsection (1) does not apply in respect of an amount paid or credited by an individual (other than a trust that is not a graduated rate estate) to a non-resident person as rent for the use of a residential property (as defined in subsection 67.7(1)) in which an individual resides (or resided before their death, provided that the amount is paid no more than 36 months after their death).

  • Marginal note:Payment — residential tenants

    (1.3) If subsection (1.2) applies and subsection (3) does not apply, the non-resident person must immediately remit to the Receiver General the income tax payable under this Part in respect of the amount and submit with the remittance a statement in prescribed form.

• (2) Subsection (1) is deemed to have come into force on August 12, 2024.

• 91 (1) Subsection 220(2.2) of the Act is replaced by the following:

  • Marginal note:Exception

    (2.2) Subsection (2.1) does not apply in respect of a prescribed form, receipt or document, or prescribed information, that is filed with the Minister on or after the day specified, in respect of the form, receipt, document or information, in subsection 37(11) or paragraph (m) of the definition investment tax credit in subsection 127(9), or subsection 127.44(17), 127.45(3), 127.48(4), 127.49(3) or 127.491(6).

• (2) Subsection (1) is deemed to have come into force on April 16, 2024.

• 92 (1) Subparagraph 241(4)(d)(vi.1) of the Act is amended by striking "and" at the end of clause (C), by adding "and" at the end of clause (D) and by adding the following after clause (D):

  • (E) a property is a clean electricity property (as defined in subsection 127.491(1)) or a qualified natural gas energy equipment (as defined in subsection 127.491(1)), or whether a system is a qualified natural gas energy system (as defined in subsection 127.491(1)),

• (2) Subparagraph 241(4)(d)(vi.2) of the Act is replaced by the following:

  • (vi.2) to a person employed or engaged in the service of an office or agency of the Government of Canada solely for the purposes of administering or enforcing sections 127.‍44 to 127.‍491 and 211.‍92 to 211.‍95 or the evaluation or formulation of related policies or guidelines,

• (3) Paragraph 241(4)(d) of the Act is amended by adding the following after subparagraph (x.1):

  • (x.2) to an official of the Department of Employment and Social Development solely for the purpose of the administration or enforcement of the Canada Labour Code as it relates to the misclassification of employees,

• (4) Subsections (1) and (2) are deemed to have come into force on April 16, 2024.

• 93 (1) The definitions arm's length allocation, arm's length transfer price, tax benefit and transfer price in subsection 247(1) of the Act are repealed.

• (2) The definitions transfer pricing income adjustment and transfer pricing income setoff adjustment in subsection 247(1) of the Act are replaced by the following:

  transfer pricing income adjustment

  transfer pricing income adjustment of a taxpayer for a taxation year means the total of all amounts each of which is the amount, if any, by which an adjustment made under subsection (2.02) (other than an adjustment included in determining a transfer pricing capital adjustment of the taxpayer for a taxation year) would result in an increase in the taxpayer's income for the year or a decrease in a loss of the taxpayer for the year from a source if that adjustment were the only adjustment made under subsection (2.02). (redressement de revenu)

  transfer pricing income setoff adjustment

  transfer pricing income setoff adjustment of a taxpayer for a taxation year means the total of all amounts each of which is the amount, if any, by which an adjustment made under subsection (2.02) (other than an adjustment included in determining a transfer pricing capital setoff adjustment of the taxpayer for a taxation year) would result in a decrease in the taxpayer's income for the year or an increase in a loss of the taxpayer for the year from a source if that adjustment were the only adjustment made under subsection (2.02). (redressement compensatoire de revenu)

• (3) Subparagraph (a)(i) of the definition transfer pricing capital adjustment in subsection 247(1) of the Act is replaced by the following:

  • (i) 1/2 of the amount, if any, by which the adjusted cost base to the taxpayer of a capital property (other than a depreciable property) is reduced in the year because of an adjustment made under subsection (2.02), or

• (4) Subparagraph (a)(iii) of the definition transfer pricing capital adjustment in subsection 247(1) of the Act is replaced by the following:

  • (iii) the amount, if any, by which the capital cost to the taxpayer of a depreciable property is reduced in the year because of an adjustment made under subsection (2.02); and

• (5) Subparagraph (b)(i) of the definition transfer pricing capital adjustment in subsection 247(1) of the Act is replaced by the following:

  • (i) 1/2 of the amount, if any, by which the adjusted cost base to a partnership of a capital property (other than a depreciable property) is reduced in a fiscal period that ends in the year because of an adjustment made under subsection (2.02), and

• (6) Subparagraph (b)(iii) of the definition transfer pricing capital adjustment in subsection 247(1) of the Act is replaced by the following:

  • (iii) the amount, if any, by which the capital cost to a partnership of a depreciable property is reduced in the period because of an adjustment made under subsection (2.02),

• (7) Subsection 247(1) of the Act is amended by adding the following in alphabetical order:

  actual conditions

  actual conditions, in respect of a transaction or series of transactions, means the conditions that actually apply between any of the participants in the transaction or series. (conditions réelles)

  arm's length conditions

  arm's length conditions, in respect of a transaction or series of transactions, means the conditions that would have applied had the participants been dealing at arm's length in comparable circumstances, including the possibility that no transaction or series, or a different transaction or series, would have been concluded had the participants been dealing at arm's length in comparable circumstances. (conditions de pleine concurrence)

  economically relevant characteristics

  economically relevant characteristics, in respect of a transaction or series of transactions, includes

  • (a) to the extent that the following contractual terms are not inconsistent with the actual conduct of the participants in the transaction or series,

    • (i) the contractual terms of the transaction or series, and

    • (ii) the contractual terms of each other transaction or series that is relevant to the transaction or series and that involves at least one of the participants or any other member of the multinational enterprise group;

  • (b) the actual conduct of the participants in the transaction or series, and in particular the functions performed by those participants, taking into account

    • (i) assets used and risks assumed,

    • (ii) how those functions relate to the wider generation of value by the multinational enterprise group to which the participants belong,

    • (iii) circumstances surrounding the transaction or series, and

    • (iv) industry practices;

  • (c) the characteristics of any property transferred or service provided;

  • (d) the economic circumstances of the participants and of the market in which the participants operate; and

  • (e) the business strategies pursued by the participants. (caractéristiques économiquement pertinentes)

  multinational enterprise group

  multinational enterprise group means the group made up of the taxpayer or the partnership, or member of the partnership, and the non-resident person (or a partnership of which the non-resident person is a member) who are participants in a transaction or series of transactions referred to in subsection (2), as well as any other person that does not deal at arm's length with at least one of the participants. (groupe d'entreprises multinationales)

  Transfer Pricing Guidelines

  Transfer Pricing Guidelines means

  • (a) if no text is prescribed under paragraph (b), the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations, as adopted by the Committee on Fiscal Affairs on January 7, 2022; or

  • (b) any text prescribed by regulation. (Principes applicables en matière de prix de transfert)

• (8) Subsection 247(2) of the Act is replaced by the following:

  • Marginal note:Delineation of transaction or series

    (1.1) For the purposes of this section, a transaction or series of transactions is to be analyzed and determined with reference to the economically relevant characteristics of the transaction or series.

  • Marginal note:Interpretation of conditions

    (1.2) For the purposes of the definitions actual conditions and arm's length conditions in subsection (1), the word "conditions" is to be interpreted broadly, and includes, but is not limited to, price, rate, gross margin, net margin, the division of profit, contributions to costs and any commercial or financial information relevant to the determination of the quantum or nature of initial amounts or adjusted amounts, as the case may be.

  • Marginal note:Transfer pricing adjustment — application

    (2) Subsection (2.02) applies to a taxpayer or a partnership in respect of a transaction or series of transactions if

    • (a) the taxpayer or the partnership and a non-resident person with whom the taxpayer or the partnership, or a member of the partnership, does not deal at arm's length (or a partnership of which the non-resident person is a member) are participants in the transaction or series; and

    • (b) the transaction or series includes actual conditions different from arm's length conditions.

  • Marginal note:Transfer pricing adjustment — deeming rule

    (2.01) For the purposes of paragraph (2)(b), a transaction or series of transactions is deemed to include actual conditions different from arm's length conditions if a condition does not exist in respect of the transaction or series, but would have existed had the participants in the transaction or series been dealing at arm's length in comparable circumstances.

  • Marginal note:Transfer pricing adjustment

    (2.02) If this subsection applies to a taxpayer or a partnership in respect of a transaction or series of transactions, any amounts (in this section referred to as the "initial amounts") that would be determined for the purposes of applying the provisions of this Act (if this Act were read without reference to this section and section 245) in respect of the taxpayer or the partnership for a taxation year or fiscal period are to be adjusted (in this section referred to as an "adjustment") to the quantum or nature of the amounts (in this section referred to as the "adjusted amounts") that would have been determined if arm's length conditions in respect of the transaction or series had applied.

  • Marginal note:Transfer Pricing Guidelines

    (2.03) For the purposes of determining the effect of this Part in relation to a taxpayer or a partnership, each of the analysis and determination of a transaction or series of transactions under subsection (1.1), the identification of arm's length conditions under paragraph (2)(b) and the determination of amounts under subsection (2.02) are to be made so as to best achieve consistency with the Transfer Pricing Guidelines.

  • Marginal note:Most appropriate method

    (2.04) For the purposes of this Part, whether a transaction or series of transactions includes actual conditions that differ from arm's length conditions is to be determined through an analysis where the most appropriate method is selected and applied in accordance with the Transfer Pricing Guidelines.

• (9) The portion of subsection 247(2.1) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Ordering

    (2.1) For the purpose of applying subsection (2.02) in the context of the other provisions of this Act, the following order is to be applied:

• (10) Paragraph 247(2.1)(c) of the Act is replaced by the following:

  • (c) then apply each of the provisions of this Act (other than subsection (2.02) and, for greater certainty, including section 245) using the adjusted amounts.

• (11) Subparagraphs 247(3)(a)(ii) and (iii) of the Act are replaced by the following:

  • (ii) the total of all amounts each of which is the portion of the taxpayer's transfer pricing capital adjustment or transfer pricing income adjustment for the year that can reasonably be considered to relate to a particular transaction or series of transactions, where

  • (A) the transaction or series is a qualifying cost contribution arrangement in which the taxpayer or a partnership of which the taxpayer is a member is a participant, or

  • (B) in any other case, the taxpayer or a partnership of which the taxpayer is a member made reasonable efforts to determine amounts that are based on arm's length conditions in respect of the transaction or series, and to use those amounts for the purposes of this Act, and

  • (iii) the total of all amounts, each of which is the portion of the taxpayer's transfer pricing capital setoff adjustment or transfer pricing income setoff adjustment for the year that can reasonably be considered to relate to a particular transaction or series, where

  • (A) the transaction or series is a qualifying cost contribution arrangement in which the taxpayer or a partnership of which the taxpayer is a member is a participant, or

  • (B) in any other case, the taxpayer or a partnership of which the taxpayer is a member made reasonable efforts to determine amounts that are based on arm's length conditions in respect of the transaction or series, and to use those amounts for the purposes of this Act,

• (12) Subparagraphs 247(3)(b)(i) and (ii) of the Act are replaced by the following:

  • (i) 10% of the amount that would be the taxpayer's gross revenue for the year if this Act were read without reference to subsection (2.02), subsections 69(1) and (1.2) and section 245, and

  • (ii) $10,000,000.

• (13) Subsection 247(4) of the Act is replaced by the following:

  • Marginal note:Contemporaneous documentation

    (4) For the purposes of subsection (3) and the definition qualifying cost contribution arrangement in subsection (1), a taxpayer or a partnership is deemed not to have made reasonable efforts to determine and use amounts that are based on arm's length conditions in respect of a transaction or series of transactions or not to have participated in a transaction or series that is a qualifying cost contribution arrangement, unless the taxpayer or the partnership, as the case may be,

    • (a) makes or obtains, on or before the taxpayer's or partnership's documentation-due date for the taxation year or fiscal period, as the case may be, in which the transaction or series is entered into, records or documents that provide a description that is complete and accurate in all material respects of

      • (i) the property or services to which the transaction or series relates,

      • (ii) the contractual terms of the transaction or series and their relationship, if any, to the contractual terms of each other transaction or series that is relevant to the transaction or series and that involves at least one of the participants or any other member of the multinational enterprise group,

      • (iii) the identity of the participants and their relationship to each other at the time the transaction or series was entered into,

      • (iv) the functions performed by each of the participants in the transaction or series, based on their actual conduct, taking into account

        • (A) assets used and risks assumed,

        • (B) how those functions relate to the wider generation of value by the multinational enterprise group to which the participants belong,

        • (C) circumstances surrounding the transaction or series, and

        • (D) industry practices,

      • (v) the data and methods considered and the analysis performed to determine amounts that are based on arm's length conditions and to select and apply the most appropriate method in accordance with the Transfer Pricing Guidelines in respect of the transaction or series, and

      • (vi) the economic circumstances, assumptions, policies and business strategies, if any, that influenced the determination of the amounts that are based on arm's length conditions in respect of the transaction or series;

    • (b) for each subsequent taxation year or fiscal period, if any, in which the transaction or series continues, makes or obtains, on or before the taxpayer's or partnership's documentation-due date for that year or period, as the case may be, records or documents that completely and accurately describe each material change in the year or period to the matters referred to in any of subparagraphs (a)(i) to (vi) in respect of the transaction or series; and

    • (c) provides the records or documents described in paragraphs (a) and (b) to the Minister within 30 days after service, made personally or by registered or certified mail, of a written request therefor.

  • Marginal note:Contemporaneous documentation simplification measures

    (4.1) Subsection (4) does not apply to a taxpayer or partnership for a particular taxation year or fiscal period in respect of a transaction or series if the taxpayer or partnership

    • (a) meets prescribed conditions; and

    • (b) makes, obtains and provides prescribed documentation in prescribed manner.

• (14) Subsection 247(7) of the Act is replaced by the following:

  • Marginal note:Exclusion — loans to certain controlled foreign affiliates

    (7) Where, in a taxation year of a corporation resident in Canada, a non-resident person owes an amount to the corporation, the non-resident person is a controlled foreign affiliate of the corporation for the purpose of section 17 throughout the period in the year during which the amount is owing and it is established that the amount owing is an amount owing described in paragraph 17(8)(a) or (b), subsection (2.02) does not apply to adjust the amount of interest paid, payable or accruing in the year on the amount owing.

• (15) The portion of subsection 247(7.1) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Exclusion — certain guarantees

    (7.1) Subsection (2.02) does not apply to adjust an amount of consideration paid, payable or accruing to a corporation resident in Canada (in this subsection referred to as the "parent") in a taxation year of the parent for the provision of a guarantee to a person or partnership (in this subsection referred to as the "lender") for the repayment, in whole or in part, of a particular amount owing to the lender by a non-resident person, if

• (16) Subsection 247(10) of the Act is replaced by the following:

  • Marginal note:No adjustment unless appropriate

    (10) An adjustment (other than an adjustment that results in or increases a transfer pricing capital adjustment or a transfer pricing income adjustment of a taxpayer for a taxation year) shall not be made under subsection (2.02) unless, in the opinion of the Minister, the circumstances are such that it would be appropriate that the adjustment be made.

• (17) Subparagraph 247(12)(b)(i) of the Act is amended by striking out "and" at the end of clause (A) and by replacing clause (B) with the following:

  • (B) the definition transfer pricing capital adjustment in subsection (1) were read without reference to the references therein to "1/2 of", and

  • (C) the definition transfer pricing income adjustment in subsection (1) were read as follows: "of a taxpayer for a taxation year means the total of all amounts each of which is the amount, if any, that would result, from an adjustment made under subsection (2.02) (other than an adjustment included in determining a transfer pricing capital adjustment of the taxpayer for a taxation year), in an increase in the taxpayer's income for the year or a decrease in a loss of the taxpayer for the year from a source if that adjustment were the only adjustment made under subsection (2.02)"

• (18) Subparagraph 247(12)(b)(ii) of the Act is amended by striking out "and" at the end of clause (A) and by replacing clause (B) with the following:

  • (B) the definition transfer pricing capital adjustment in subsection (1) were read without reference to the references therein to "1/2 of",

  • (C) the definition transfer pricing income adjustment in subsection (1) were read as follows: "of a taxpayer for a taxation year means the total of all amounts each of which is the amount, if any, that would result, from an adjustment made under subsection (2.02) (other than an adjustment included in determining a transfer pricing capital adjustment of the taxpayer for a taxation year), in an increase in the taxpayer's income for the year or a decrease in a loss of the taxpayer for the year from a source if that adjustment were the only adjustment made under subsection (2.02)", and

  • (D) the definition transfer pricing income setoff adjustment in subsection (1) were read as follows: "of a taxpayer for a taxation year means the total of all amounts each of which is the amount, if any, that would result, from an adjustment made under subsection (2.02) (other than an adjustment included in determining a transfer pricing capital set-off adjustment of the taxpayer for the taxation year), in a decrease in the taxpayer's income for the year or in an increase in a loss of the taxpayer for the year from a source if that adjustment were the only adjustment made under subsection (2.02)".

• (19) Subsections (1) to (18) apply to taxation years and fiscal periods that begin after November 4, 2025.

• 94 (1) The definitions recognized derivatives exchange, specified mutual fund trust, specified synthetic equity arrangement, synthetic equity arrangement chain and tax-indifferent investor in subsection 248(1) of the Act are repealed.

• (2) The definition superannuation or pension benefit in subsection 248(1) of the Act is replaced by the following:

  superannuation or pension benefit

  superannuation or pension benefit includes any amount received out of or under a superannuation or pension fund or plan (including, except for the purposes of subparagraph 56(1)(a)(i), a pooled registered pension plan) and, without restricting the generality of the foregoing, includes

  • (a) any payment made to a beneficiary under the fund or plan or to an employer or former employer of the beneficiary under the fund or plan

    • (i) in accordance with the terms of the fund or plan,

    • (ii) resulting from an amendment to or modification of the fund or plan, or

    • (iii) resulting from the termination of the fund or plan, and

  • (b) any payment made to an individual by an unclaimed property authority, if an amount in respect of the payment had been paid to the unclaimed property authority directly from a registered pension plan, an RRSP or a RRIF in respect of an unlocated individual; (prestation de retraite ou de pension)

• (3) Subclause (b)(i)(B)(I) of the definition derivative forward agreement in subsection 248(1) of the Act is replaced by the following:

  • (I) a tax-indifferent (as defined in subsection 18.2(1)), or

• (4) The definition dividend rental arrangement in subsection 248(1) of the Act is amended by adding "and" at the end of paragraph (b.1), by striking out "and" at the end of paragraph (c) and by repealing paragraph (d).

• (5) Paragraph (j) of the definition employee ownership trust in subsection 248(1) of the Act is replaced by the following:

  • (j) all or substantially all the fair market value of the property of the trust is derived, directly or indirectly, from shares of the capital stock or indebtedness of one or more qualifying businesses that the trust controls and that carry on an active business; (fiducie collective des employés)

• (6) Paragraph (c) of the definition qualifying business in subsection 248(1) of the Act is replaced by the following:

  • (c) that deals at arm's length and is not affiliated with any person (other than a subject corporation referred to in paragraph (a) of the definition qualifying business transfer that controlled and wholly-owned the corporation immediately before the time the trust acquired control of the corporation) or partnership that owned, directly or indirectly, 50% or more of the fair market value of the shares of the capital stock or indebtedness of the corporation immediately before the time the trust acquired control of the corporation; (entreprise admissible)

• (7) Paragraph (a) of the definition qualifying business transfer in subsection 248(1) of the Act is replaced by the following:

  • (a) immediately before the disposition, all or substantially all the fair market value of the assets of the subject corporation is derived, directly or indirectly, from assets (other than an interest in a partnership) that are used principally in an active business (referred to in this definition as the "business") carried on by the subject corporation or a corporation that is controlled and wholly-owned by the subject corporation,

• (8) Subparagraphs (a)(i) and (ii) of the definition synthetic equity arrangement in subsection 248(1) of the Act are replaced by the following:

  • (i) are entered into by the particular person, by a person or partnership that does not deal at arm's length with, or is affiliated with, the particular person (referred to in this definition as a "connected person") or, for greater certainty, by any combination of the particular person and connected persons, with one or more persons or partnerships (referred to in this definition as a "counterparty"),

  • (ii) have the effect, or would have the effect, if each agreement entered into by a connected person were entered into by the particular person, of eliminating all or substantially all the particular person's risk of loss and opportunity for gain or profit in respect of the DRA share, and, for greater certainty, opportunity for gain or profit includes rights to, benefits from and distributions on a share, and

• (9) Subparagraph (b)(i) of the definition synthetic equity arrangement in subsection 248(1) of the Act is repealed.

• (10) Paragraph (b) of the definition zero-emission vehicle in subsection 248(1) of the Act is replaced by the following:

  • (b) is acquired, and becomes available for use, by the taxpayer after March 18, 2019 and before 2034,

• (11) Paragraph (d) of the definition zero-emission vehicle in subsection 248(1) of the Act is replaced by the following:

  • (d) would be an accelerated investment incentive property or a reaccelerated investment incentive property of the taxpayer if subsections 1104(4) and (4.01) of the Income Tax Regulations were read without their exclusions for property included in Class 54 or Class 55 of Schedule II to those Regulations. (véhicule zéro émission)

• (12) Subparagraph (b)(iv) of the definition fiducie collective des employés in subsection 248(1) of the French version of the Act is replaced by the following:

  • (iv) immédiatement avant le moment d'un transfert admissible d'entreprise à la fiducie, ne détenait pas, directement ou indirectement, seule ou avec une personne ou société de personnes liée ou affiliée, des actions du capital-actions ou des dettes de l'entreprise admissible, dont la valeur est égale ou supérieure à 50 % de la juste valeur marchande des actions du capital-actions et des dettes de l'entreprise admissible,

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

  qualifying cooperative business

  qualifying cooperative business, at a particular time, means a corporation, controlled by a worker cooperative,

  • (a) that is a Canadian-controlled private corporation,

  • (b) of which not more than 40% of the directors consist of individuals that, immediately before the time that the worker cooperative acquired control of the corporation, owned, directly or indirectly, together with any person or partnership that is related to or affiliated with the director, 50% or more of the fair market value of the shares of the capital stock or indebtedness of the corporation, and

  • (c) that deals at arm's length and is not affiliated with any person (other than a subject corporation referred to in paragraph (a) of the definition "qualifying cooperative conversion" that controlled and wholly-owned the corporation immediately before the time the worker cooperative acquired control of the corporation) or partnership that owned, directly or indirectly, 50% or more of the fair market value of the shares of the capital stock or indebtedness of the corporation immediately before the time the worker cooperative acquired control of the corporation; (entreprise coopérative admissible)

  qualifying cooperative conversion

  qualifying cooperative conversion means a disposition by a taxpayer of shares of the capital stock of a corporation (in this definition referred to as the "subject corporation") to another corporation (in this definition referred to as the "purchaser corporation"), if

  • (a) immediately before the disposition, all or substantially all the fair market value of the assets of the subject corporation is derived, directly or indirectly, from assets (other than an interest in a partnership) that are used principally in an active business carried on by the subject corporation or a corporation that is controlled and wholly-owned by the subject corporation,

  • (b) at the time of the disposition,

    • (i) the taxpayer deals at arm's length with the purchaser corporation,

    • (ii) the purchaser corporation acquires control of the subject corporation, and

    • (iii) the purchaser corporation is a worker cooperative, and

  • (c) at all times after the disposition,

    • (i) the taxpayer deals at arm's length with the purchaser corporation and subject corporation, and

    • (ii) the taxpayer does not retain any right or influence that, if exercised, would allow the taxpayer (whether alone or together with any person or partnership that is related to or affiliated with the taxpayer) to control, directly or indirectly in any manner whatever, the purchaser corporation or subject corporation; (conversion admissible de coopérative)

  qualifying cooperative worker

  qualifying cooperative worker means an individual who 

  • (a) holds a membership share of a corporation that was incorporated or continued by or under the provisions of a law, of Canada or of a province, that provide for the establishment of the corporation as a cooperative corporation or that provide for the establishment of cooperative corporations,

  • (b) is an employee of the corporation or a qualifying cooperative business controlled by the corporation,

  • (c) does not represent, together with any person or partnership that is related to or affiliated with the individual, more than 50% of the members of the worker cooperative,

  • (d) immediately before the time of a qualifying cooperative conversion that involved the corporation, did not own, directly or indirectly, together with any person or partnership that is related to or affiliated with the individual, shares of the capital stock or indebtedness of the corporation or a qualifying cooperative business controlled by the corporation, the value of which is equal to or greater than 50% of the fair market value of the shares of the capital stock and indebtedness of the corporation or the qualifying cooperative business controlled by the corporation, and

  • (e) has not claimed, and is not related to an individual who claimed, a deduction under subsection 110.62(2) in respect of a disposition of shares of the corporation or a qualifying cooperative business controlled by the corporation; (travailleur admissible de coopérative)

  worker cooperative

  worker cooperative means a corporation that, at all relevant times, satisfies the following conditions:

  • (a) the corporation is resident in Canada,

  • (b) the corporation was incorporated or continued by or under the provisions of a law, of Canada or of a province, that provide for the establishment of the corporation as a cooperative corporation or that provide for the establishment of cooperative corporations,

  • (c) the corporation is established for the purpose of providing employment to its members,

  • (d) the corporation would be controlled by a particular person if each membership share of the capital stock of the corporation that is owned by a qualifying cooperative worker were owned by the particular person,

  • (e) at least 75% of all individuals employed by the corporation and all qualifying cooperative businesses controlled by the corporation (other than an employee who has not completed an applicable probationary period, which may not exceed 12 months) are holders of a membership share of the corporation,

  • (f) each initial membership share provided to an employee of the corporation and any qualifying cooperative business controlled by the corporation is

    • (i) issued in exchange for a payment of a nominal amount determined in the same manner for all members described in the definition qualifying cooperative worker, and

    • (ii) offered to each employee following their completion of an applicable probationary period, which may not exceed 12 months,

  • (g) at least one-third of the directors of the corporation are qualifying cooperative workers of the corporation,

  • (h) not more than 40% of the directors of the corporation consist of individuals each of whom, immediately before the time of a qualifying cooperative conversion that involved the corporation, owned, directly or indirectly, together with any person or partnership that is related to or affiliated with the director, 50% or more of the fair market value of the shares of the capital stock or indebtedness of the corporation or a qualifying cooperative business controlled by the corporation, and

  • (i) the by-laws of the corporation provide a procedure for allocating, crediting or distributing any surplus earnings of the corporation, including that not less than 50% of those earnings must be paid on the basis of the remuneration earned by the qualifying cooperative workers from the corporation or the labour contributed by those members to the corporation; (coopérative de travailleurs)

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

  unclaimed property authority

  unclaimed property authority means an entity that receives and holds property on behalf of individuals that cannot be located, as authorized under the provisions of

  • (a) the Pension Benefits Standards Act, 1985,

  • (b) the Unclaimed Property Act, CQLR, c. B-5.1,

  • (c) the Unclaimed Property Act, S.B.C. 1999, c. 48, or

  • (d) a prescribed law or a law designated by the Minister of Finance for the purpose of this definition that is published in such a manner as the Minister of Finance deems appropriate; (autorité des biens non réclamés)

  unlocated individual

  unlocated individual means an individual in respect of whom property held under a registered pension plan, RRIF or RRSP can be paid or transferred to an unclaimed property authority in accordance with the laws of Canada or a province; (particulier introuvable)

• (15) Subsection 248(42) of the Act is replaced by the following:

  • Marginal note:Synthetic equity arrangements — disaggregation

    (42) For the purposes of the definition synthetic equity arrangement in subsection (1), paragraph (c) of the definition dividend rental arrangement in subsection (1) and subsection 112(10), an arrangement that reflects the fair market value of more than one type of identical share (within the meaning of subsection 112(10)) is considered to be a separate arrangement with respect to each type of identical share the value of which the arrangement reflects.

• (16) Subsections (1), (3), (4), (8) to (11) and (15) are deemed to have come into force on January 1, 2025.

• (17) Subsection (2) applies in respect of amounts paid to an individual by an unclaimed property authority if an amount in respect of the payment was paid to the unclaimed property authority after December 31, 2026.

• (18) Subsections (5) to (7) are deemed to have come into force on January 1, 2024.

• (19) Subsection (13) is deemed to have come into force on January 1, 2024.

• (20) Subsection (14) comes into force on January 1, 2027.

• 95 (1) Paragraph 251(1)(b) of the Act is replaced by the following:

  • (b) a taxpayer and a personal trust (other than a trust described in any of paragraphs (a) to (e.1) and (h) of the definition trust in subsection 108(1)) are deemed not to deal with each other at arm's length if the taxpayer, or any person not dealing at arm's length with the taxpayer, would be beneficially interested in the trust if subsection 248(25) were read without reference to subclauses 248(25)(b)(iii)(A)(II) to (IV); and

• (2) Subsection (1) is deemed to have come into force on January 1, 2024.

• 96 (1) The definition specified provision in subsection 256.1(1) of the Act is replaced by the following:

  specified provision

  specified provision means any of subsections 10(10) and 13(24), paragraph 37(1)(h), subsections 66(11.4) and (11.5), 66.7(10) and (11), 69(11) and 111(4), (5), (5.01), (5.1) and (5.3), paragraphs (j) and (k) of the definition investment tax credit in subsection 127(9), subsections 181.1(7) and 190.1(6), section 251.2 and any provision of similar effect. (dispositions déterminées)

• (2) Subsection (1) is deemed to have come into force on August 9, 2022.

R.S., c. E-15Excise Tax Act

97 Paragraph 295(5)(d) of the Excise Tax Act is amended by adding the following after subparagraph (v.1):

• (v.2) to an official of the Department of Employment and Social Development solely for the purpose of the administration or enforcement of the Canada Labour Code as it relates to the misclassification of employees,

C.R.C., c. 945Income Tax Regulations

• 98 (1) Subparagraph (j.1)(i) of the definition remuneration in subsection 100(1) of the Income Tax Regulations is replaced by the following:

  • (i) the particular payment is in respect of the minimum amount (determined in accordance with subsection 146.3(1), (1.6) or (1.7) of the Act, as the case may be) under the fund for a year, or

• (2) Subsection (1) comes into force on January 1, 2027.

• 99 (1) Paragraph 103(6)(d.1) of the Regulations is replaced by the following:

  • (d.1) a payment made during the lifetime of an annuitant referred to in the definition annuitant in subsection 146.3(1) of the Act under a registered retirement income fund of that annuitant, other than a payment to the extent that it is in respect of the minimum amount (determined in accordance with subsection 146.3(1), (1.6) or (1.7) of the Act, as the case may be) under the fund for a year,

• (2) Subsection (1) comes into force on January 1, 2027.

• 100 (1) The portion of subsection 204.2(1) of the Regulations before paragraph (b) is replaced by the following:

  • 204.2 (1) Every trust, other than a trust described in any of paragraphs 150(1.2)(a) to (q) of the Act, that is required to file a return of income under subsection 150(1) of the Act, shall provide information that includes the name, address, date of birth (in the case of an individual other than a trust), jurisdiction of residence and TIN (as defined in subsection 270(1) of the Act) for each person or partnership who, in the year,

    • (a) is a trustee, beneficiary (subject to subsection (2)) or settlor of the trust; or

• (2) The portion of subsection 204.2(1) of the Regulations before paragraph (a), as amended by subsection (1), is replaced by the following:

  • 204.2 (1) Every trust, other than a trust described in any of paragraphs 150(1.2)(a) to (r) of the Act, that is required to file a return of income under subsection 150(1) of the Act, shall provide information that includes the name, address, date of birth (in the case of an individual other than a trust), jurisdiction of residence and TIN (as defined in subsection 270(1) of the Act) for each person or partnership who, in the year,

• (3) Subsection 204.2(2) of the Regulations is amended by adding the following after paragraph (b):

  • (b.1) the trustee of the trust is a public guardian and trustee authorized under a law of Canada or a Province who, as trustee, who is acting in their capacity as public guardian and trustee, including acting as trustee of a trust pursuant to an order of a court;

• (4) Subsection 204.2(2) of the Regulations is amended by striking out "and" at the end of paragraph (c), by adding "and" at the end of paragraph (d) and by adding the following after paragraph (d):

  • (e) in respect of a trust that is an alter ego trust or a joint spousal or common-law partner trust, the person making the return provides the required information regarding the beneficiaries of the trust, other than those beneficiaries who are beneficiaries under the trust solely because of a right of the person to receive any of the trust's income or capital, if under that right the person may so receive that income or capital only on or after the death after that time of an individual.

• (5) Section 204.2 of the Regulations is amended by adding the following after subsection (2):

  • (3) For the purpose of subsection (1), a settlor of a trust at any time means any person or partnership that has directly or indirectly, in any manner whatever, transferred property to the trust at or before that time, other than a transfer made by the person or partnership to the trust for fair market value consideration or pursuant to a legal obligation to make the transfer.

• (6) Subsections (1), (3) and (5) apply to taxation years that end after December 30, 2024.

• (7) Subsections (2) and (4) apply to taxation years that end after December 30, 2025.

• 101 (1) Paragraph 600(b) of the Regulations is replaced by the following:

  • (b) subsections 13(4), (7.4) and (29), 20(24), 44(1) and (6), 45(2) and (3), 50(1), 53(2.1), 56.4(13), 70(6.2), (9.01), (9.11), (9.21) and (9.31), 72(2), 73(1), 80.1(1), 82(3), 83(2), 91(1.4), 93.4(2) to (5), 104(14), 107(2.001), 143(2), 146.01(7), 146.02(7), 164(6) and (6.1), 184(3), 251.2(6) and 256(9) of the Act;

• (2) Paragraph 600(c) of the Regulations is replaced by the following:

  • (c) paragraphs 12(2.2)(b), (e) of the definition excluded interest and (b) of the definition specified pre-regime loss in subsection 18.2(1), 66.7(7)(c), (d) and (e) and (8)(c), (d) and (e), 80.01(4)(c), 86.1(2)(f) and 128.1(4)(d), (6)(a) and (c), (7)(d) and (g) and (8)(c) of the Act;

  • (c.1) subclause 95(2)(f.11)(ii)(E)(III) of the Act; and

• (3) Paragraph 600(c) of the Regulations, as enacted by subsection (2), is replaced by the following:

  • (c) paragraphs 12(2.2)(b), (e) of the definition excluded interest and (b) of the definition specified pre-regime loss in subsection 18.2(1), 66.7(7)(c), (d) and (e) and (8)(c), (d) and (e), 80.01(4)(c), 84.1(2.31)(h) and (2.32)(i), 86.1(2)(f), 110.61(1)(e), 110.62(1)(e) and 128.1(4)(d), (6)(a) and (c), (7)(d) and (g) and (8)(c) of the Act;

• (4) Subsection (1) applies to taxation years that begin after 2025. Subsection (1) also applies to preceding taxation years if an election is filed under subsection 93.4(4) or (5) of the Act.

• (5) Subsection (2) is deemed to have come into force on October 1, 2023.

• (6) Subsection (3) is deemed to have come into force on January 1, 2024.

• 102 (1) The heading "Property Dispositions" before section 1000 and sections 1000 and 1000.1 of the Regulations are repealed.

• (2) Subsection (1) applies to taxation years of individuals who died on or after August 12, 2024.

• 103 (1) Subsection 1100(1) of the Regulations is amended by adding the following after paragraph (a.3):

  • (a.4) if a separate class is prescribed by subsection 1101(1ac.1) for a property of a taxpayer that is a new purpose-built residential rental throughout the taxation year, such amount as the taxpayer may claim not exceeding six per cent of the undepreciated capital cost to the taxpayer of the property of that class as of the end of the taxation year (before making any deduction under this subsection for the taxation year);

• (2) The portion of clause 1100(1)(b)(i)(A) of the Regulations before subclause (I) is replaced by the following:

  • (A) if the property is either an accelerated investment incentive property and the capital cost of the property was incurred before 2024, or a reaccelerated investment incentive property and the capital cost of the property was incurred before 2030, the lesser of

• (3) Clause 1100(1)(b)(i)(B) of the Regulations is replaced by the following:

  • (B) if the property is neither an accelerated investment incentive property nor a reaccelerated 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

• (4) Subparagraph 1100(1)(c)(i) of the Regulations is amended by striking out "and" at the end of clause (A) and by adding the following after clause (B):

  • (C) if the property is reaccelerated 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 2030, and

    • (II) 0.25, if the property becomes available for use in the year and after 2029, and

• (5) Clause 1100(1)(v)(iv)(A) of the Regulations is replaced by the following:

  • (A) 50 per cent, in the case of an accelerated investment incentive property acquired in the year and before 2024 or a reaccelerated investment incentive property acquired in the year and before 2030,

• (6) Subclause 1100(1)(v)(iv)(B)(I) of the Regulations is replaced by the following:

  • (I) accelerated investment incentive property or reaccelerated investment incentive property, and

• (7) The portion of the first formula in subsection 1100(2) of the Regulations before the description of A is replaced by the following:

  A(B) + A.1(B.1) − 0.5(C)

  where

• (8) The portion of the description of A in subsection 1100(2) of the Regulations before paragraph (a) is replaced by the following:

  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 acquired before 2025 that is included in any of Classes 54 to 56,

• (9) Paragraph (a) of the description of A in subsection 1100(2) of the Regulations is replaced by the following:

  • (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, 55, 56 and 59 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,

• (10) Subparagraph (a)(ii) of the description of A in subsection 1100(2) of the Regulations, as enacted by subsection (9), is replaced by the following:

  • (ii) nil, for property that became available for use by the taxpayer after 2023 (other than property referred to in any of paragraphs (c.1) to (c.3)),

• (11) The description of A in subsection 1100(2) of the Regulations is amended by adding the following after paragraph (c):

  • (c.1) if the class is Class 44,

  • (i) 3, for property that was acquired and became available for use by the taxpayer after April 15, 2024 and before 2027, and

  • (ii) nil, for property that became available for use by the taxpayer after 2026,

  • (c.2) if the class is Class 46,

  • (i) 2 1/3, for property that was acquired and became available for use by the taxpayer after April 15, 2024 and before 2027, and

  • (ii) nil, for property that became available for use by the taxpayer after 2026,

  • (c.3) if the class is Class 50,

  • (i) 9/11, for property that was acquired and became available for use by the taxpayer after April 15, 2024 and before 2027, and

  • (ii) nil, for property that became available for use by the taxpayer after 2026,

• (12) Subsection 1100(2) of the Regulations is amended by adding the following after the description of A:

  A.1

  is, in respect of property of the class that became available for use by the taxpayer in the taxation year and that is reaccelerated investment incentive property or property acquired after 2024 that is included in any of Classes 54 to 56,

  • (a) if the property is not included in paragraph (1)(v) or in any of Classes 12, 13, 14, 15, 43.1, 44, 46, 50, 53, 54, 55, 56 and 59 or in Class 43 in the circumstances described in paragraph (f),

    • (i) 1/2, for property that became available for use by the taxpayer before 2030, and

    • (ii) nil, for property that became available for use by the taxpayer after 2029,

  • (b) if the class is Class 43.1,

    • (i) 2 1/3, for property that became available for use by the taxpayer before 2030,

    • (ii) 1 1/2, for property that became available for use by the taxpayer in 2030 or 2031, and

    • (iii) 5/6, for property that became available for use by the taxpayer after 2031,

  • (c) if the class is Class 44,

    • (i) 3, for property that became available for use by the taxpayer before 2027, and

    • (ii) nil, for property that became available for use by the taxpayer after 2026,

  • (d) if the class is Class 46,

    • (i) 2 1/3, for property that became available for use by the taxpayer before 2027, and

    • (ii) nil, for property that became available for use by the taxpayer after 2026,

  • (e) if the class is Class 50,

    • (i) 9/11, for property that became available for use by the taxpayer before 2027, and

    • (ii) nil, for property that became available for use by the taxpayer after 2026,

  • (f) 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 included in Class 53,

    • (ii) 2 1/3, for property included in Class 43 that became available for use by the taxpayer before 2030,

    • (iii) 1 1/2, for property included in Class 43 that became available for use by the taxpayer in 2030 or 2031,

    • (iv) 5/6, for property included in Class 43 that became available for use by the taxpayer after 2031,

  • (g) if the class is Class 54 or Class 56,

    • (i) 2 1/3, for property that became available for use by the taxpayer before 2030,

    • (ii) 1 1/2, for property that became available for use by the taxpayer in 2030 or 2031, and

    • (iii) 5/6, for property that became available for use by the taxpayer after 2031,

  • (h) if the class is Class 55,

    • (i) 1 1/2, for property that became available for use by the taxpayer before 2030,

    • (ii) 7/8, for property that became available for use by the taxpayer in 2030 or 2031, and

    • (iii) 3/8, for property that became available for use by the taxpayer after 2031, and

  • (i) in any other case, nil;

• (13) The description of D in subsection 1100(2) of the Regulations is replaced by the following:

  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 acquired before 2025 that is included in any of Classes 54 to 56, and

• (14) Subsection 1100(2) of the Regulations is amended by striking out "and" at the end of the description of B and by adding the following after the description of B:

  B.1

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

  D.1 − E.1

  where

  D.1

  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 reaccelerated investment incentive property or property acquired after 2024 that is included in any of classes 54 to 56, and

  E.1

  is the amount, if any, by which the amount determined for G exceeds the amount determined for F; and

• (15) Subparagraph (a)(i) of the description of F in subsection 1100(2) of the Regulations is replaced by the following:

  • (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 or reaccelerated investment incentive property) that was acquired, or became available for use, by the taxpayer in the taxation year, or

• (16) Subsection 1100 of the Regulations is amended by adding the following after subsection (2.01):

  • Marginal note:Straddle years — reaccelerated investment incentive property

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

    • (a) if a taxation year begins in 2029 and ends in 2030, the factor determined for A.1 in subsection (2) (other than for the purposes of paragraphs (c), (d) and (e) of the description of A.1 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.1 in subsection (2) for 2029,

      B

      is the amount that would be determined for D.1 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 2029,

      C

      is the factor otherwise determined for A.1 in subsection (2) for 2030, and

      D

      is the amount that would be determined for D.1 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 2030;

    • (b) for the purposes of paragraphs (c), (d) and (e) of the description of A.1 in subsection (2), if a taxation year begins in 2026 and ends in 2027, the factor determined for A.1 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.1 in subsection (2) for 2026,

      B

      is the amount that would be determined for D.1 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,

      C

      is the factor otherwise determined for A.1 in subsection (2) for 2027, and

      D

      is the amount that would be determined for D.1 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 2027; and

    • (c) if a taxation year begins in 2031 and ends in 2032, the factor determined for A.1 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.1 in subsection (2) for 2031,

      B

      is the amount that would be determined for D.1 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 2031,

      C

      is the factor otherwise determined for A.1 in subsection (2) for 2032, and

      D

      is the amount that would be determined for D.1 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 2032.

• (17) Section 1100 of the Regulations is amended by adding the following after subsection (2.02):

  • Marginal note:Expenditures excluded from D.1

    (2.021) For the purposes of subsection (2), in respect of property of a class in Schedule II that is reaccelerated investment incentive property of a taxpayer solely because of subparagraph 1104(4.01)(b)(i),

    • (a) amounts incurred by any person or partnership in respect of the property are not to be included in determining the amount for D.1 in subsection (2) in respect of the class

      • (i) if the amounts are incurred before 2025, unless

        • (A) the property was acquired after 2024 by a person or partnership from another person or partnership (referred to in this subparagraph as the "transferee" and the "transferor", respectively),

        • (B) the transferee was either

          • (I) the taxpayer, or

          • (II) a person or partnership that does not deal at arm's length with the taxpayer, and

        • (C) the transferor

          • (I) dealt at arm's length with the transferee, and

          • (II) held the property as inventory, and

      • (ii) if the amounts are incurred after 2024 and amounts are deemed to have been deducted under paragraph 20(1)(a) or subsection 20(16) of the Act, in respect of those amounts incurred, under paragraph 1104(4.11)(b); and

    • (b) any amount excluded from the amount determined for D.1 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 reaccelerated investment incentive property of the taxpayer.

• (18) Subsection (1) is deemed to have come into force on April 16, 2024.

• (19) Subsections (2) to (8) and (12) to (17) are deemed to have come into force on January 1, 2025.

• (20) Subsection (9) applies to property acquired after 2021.

• (21) Subsections (10) and (11) apply to property that is acquired and becomes available for use after April 15, 2024.

• 104 (1) Section 1101 of the Regulations is amended by adding the following after subsection (1ac):

  • (1ac.1) For the purposes of this Part, each property of a taxpayer that is a new purpose-built residential rental is prescribed to be a separate class of property.

• (2) Section 1101 of the Regulations is amended by adding the following after subsection (2c):

  International Shipping Vessel

  • (2d) A separate class is prescribed for each vessel of a taxpayer described in Class 7 in Schedule II, including the furniture, fittings, radiocommunication equipment and other equipment attached to the vessel, that has been used by the taxpayer to earn income that would not be included in computing the income of the taxpayer because of paragraph 81(1)(c.1) of the Act.

• (3) Subsection (1) is deemed to have come into force on April 16, 2024.

• (4) Subsection (2) is deemed to have come into force on December 31, 2023.

• 105 (1) Subsection 1102(1) of the Regulations is amended by striking out "or" at the end of paragraph (j), by adding "or" at the end of paragraph (k) and by adding the following after paragraph (k):

  • (l) referred to in paragraph 81(1)(c.3) of the Act.

• (2) Subsection 1102(20.1) of the Regulations is replaced by the following:

  • (20.1) For the purposes of subsections 1100(0.3), (2.02) and (2.021) and 1104(3.1), (4) and (4.01), a particular person or partnership and another person or partnership shall be considered not to be dealing at arm's length with each other in respect of the acquisition or ownership of a property if, in the absence of this subsection, they would be considered to be dealing at arm's length with each other and it may reasonably be considered that the principal purpose of any transaction or event, or a series of transactions or events, is to cause

    • (a) the property to qualify as accelerated investment incentive property, reaccelerated investment incentive property or immediate expensing property; or

    • (b) the particular person or partnership and the other person or partnership to satisfy the condition in subparagraph 1100(0.3)(c)(i) or subclause 1100(2.02)(a)(i)(C)(I) or (2.021)(a)(i)(C)(I).

• (3) Subsection (1) is deemed to have come into force on December 31, 2023.

• (4) Subsection (2) is deemed to have come into force on January 1, 2025.

• 106 (1) Subsection 1104(2) of the Regulations is amended by adding the following in alphabetical order:

  new purpose-built residential rental

  new purpose-built residential rental means a purpose-built residential rental that

  • (a) was

    • (i) built for use as a purpose-built residential rental if construction began after April 15, 2024 and before 2031, or

    • (ii) previously a building, or part of a building, used as a commercial property that was substantially renovated for use as a purpose-built residential rental if the renovations began after April 15, 2024 and before 2031, and

  • (b) becomes available for use before 2036; (nouvel ensemble résidentiel construit spécialement pour la location)

  purpose-built residential rental

  purpose-built residential rental means a building or a part of a building situated in Canada

  • (a) that contains

    • (i) four or more residential rental units at least four of which contain private kitchen facilities, a private bath and a private living area, or

    • (ii) 10 or more residential rental units, and

  • (b) in which all or substantially all the residential rental units are rented or offered for rent for continuous periods of not less than 28 consecutive days; (ensemble résidentiel construit spécialement pour la location)

  residential rental unit

  residential rental unit means a housing unit used or intended for use as a rented residential premises that is not provided to the travelling or vacationing public; (logement locatif)

• (2) Paragraph 1104(4)(a) of the Regulations is replaced by the following:

  • (a) is acquired by the taxpayer after November 20, 2018 and before 2025 and becomes available for use before 2028; and

• (3) Section 1104 of the Regulations is amended by adding the following after subsection (4):

  • Marginal note:Definition of reaccelerated investment incentive property

    (4.01) For the purposes of this Part and Schedules II to VI, reaccelerated investment incentive property means property of a taxpayer (other than property included in any of Classes 54 to 56) that

    • (a) is acquired by the taxpayer after 2024 and becomes available for use before 2034; and

    • (b) meets either of the following conditions:

      • (i) the property 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 any person or partnership for a taxation year ending before the time the property was acquired by the taxpayer, 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.

• (4) Section 1104 of the Regulations is amended by adding the following after subsection (4.1):

  • Marginal note:Deemed separate properties

    (4.11) For the purpose of subparagraph (4.01)(b)(i), if the capital cost to a taxpayer of a depreciable property (referred to in this subsection as the "single property") includes amounts incurred at different times, then amounts deducted under paragraph 20(1)(a) or subsection 20(16) of the Act in respect of the single property are deemed to have been deducted in respect of a separate property that is not part of the single property to the extent the deducted amounts can reasonably be considered to be in respect of amounts

    • (a) incurred before 2025; or

    • (b) incurred after 2024, if any portion of the single property is considered to have become available for use before the time the single property is first used for the purpose of earning income.

• (5) The definition transmission equipment in subsection 1104(13) of the Regulations is replaced by the following:

  transmission equipment

  transmission equipment means equipment used to transmit electrical energy. (matériel de transmission)

• (6) Subsection 1104(13) of the Regulations is amended by adding the following in alphabetical order:

  eligible electrical generation equipment

  eligible electrical generation equipment means property that is electrical generating equipment described in

  • (a) subparagraph (d)(iii.1), (v), (vi), (vii), (xiv) or (xix) of Class 43.1 in Schedule II; or

  • (b) subparagraph (e)(i) or (iii) of the definition clean electricity property in subsection 127.491(1) of the Act. (matériel générateur d'électricité admissible)

  eligible transmission equipment

  eligible transmission equipment means property (other than a building) that is transmission equipment of a taxpayer where

  • (a) the transmission equipment is used in connection with eligible electrical generation equipment of the taxpayer; and

  • (b) on annual basis

    • (i) more than 75% of the electrical energy generated by the eligible electrical generation equipment is transmitted by the transmission equipment, and

    • (ii) more than 75% of the electrical energy transmitted by the transmission equipment is generated by the eligible electrical generation equipment. (matériel de transmission admissible)

• (7) Paragraph 1104(15)(b) of the Regulations is replaced by the following:

  • (b) the property utilizes heat obtained from the taxpayer's system;

• (8) Subsection 1104(17) of the Regulations is replaced by the following:

  Environmental Compliance

  • (17) A property that would otherwise be eligible for inclusion in Class 43.1 or Class 43.2 in Schedule II by a taxpayer is deemed not to be eligible for inclusion in either of those classes if, at the time the property becomes available for use, there is substantial non-compliance by the taxpayer with the requirements of any environmental law, by-law or regulation of Canada, a province, a municipality, or a municipal or public body performing a function of government in Canada that is applicable in respect of the property.

• (9) Subsection (1) is deemed to have come into force on April 16, 2024.

• (10) Subsections (2) to (4) are deemed to have come into force on January 1, 2025.

• (11) Subsections (5) and (6) are deemed to have come into force on the day on which the notice of a ways and means motion in respect of this section is tabled in the House of Commons.

• (12) Subsections (7) and (8) are deemed to have come into force on November 21, 2023.

• 107 (1) The formula in subsection 1400(3) of the Regulations is replaced by the following:

  A + B + (0.95 × C) − (0.9 × D) + E + F + G − (H − (0.9 × I) − (0.05 × J))

• (2) The formula in subsection 1400(3) of the Regulations is amended by striking out "and" at the end of the description of H, by adding "and" at the end of the description of I and by adding the following after the description of I:

  J

  is the reinsurance contract held amount in respect of a group of reinsurance contracts that is included in the description of H and that is in respect of a liability for incurred claims in respect of a group of insurance contracts that is included in the description of C.

• (3) Subsections (1) and (2) apply to taxation years that begin after 2022.

• 108 (1) Paragraph 2902(b) of the Regulations is replaced by the following:

  • (b) an expenditure of a capital nature incurred by a taxpayer in respect of

    • (i) the acquisition of property, except any such expenditure that at the time it was incurred

      • (A) was for first term shared-use-equipment or second term shared-use-equipment (as those terms are defined in subsection 127(9) of the Act), or

      • (B) was for the provision of premises, facilities or equipment if, at the time of the acquisition of the premises, facilities or equipment, it was intended

        • (I) that the premises, facilities or equipment would be used during all or substantially all of the operating time of the premises, facilities or equipment in the expected useful life of the premises, facilities or equipment for the prosecution of scientific research and experimental development in Canada, or

        • (II) that all or substantially all of the value of the premises, facilities or equipment would be consumed in the prosecution of scientific research and experimental development in Canada,

    • (ii) the acquisition of property that is qualified property as defined in subsection 127(9) of the Act, or

    • (iii) the acquisition of property that has been used, or acquired for use or lease, for any purpose whatever before it was acquired by the taxpayer;

• (2) Subsection (1) applies in respect of property acquired on or after December 16, 2024 and, in the case of lease costs, to amounts that first become payable on or after December 16, 2024.

• 109 (1) The Regulations are amended by adding the following after the heading "Special-Purpose Buildings" after section 2902:

  Marginal note:Special-purpose buildings

  2903 For the purposes of this Part and paragraph 37(8)(e) of the Act, a special-purpose building is a building the working areas of which are designed and constructed to have a displacement in any direction of not more than 0.02 µm (micrometres) and to have, per 0.028 cubic metre of interior airspace,

  • (a) not more than 350 airborne particles of a size less than or equal to 0.1 µm (micrometres) in diameter and no airborne particles of a size greater than 0.1 µm (micrometres) in diameter,

  • (b) not more than 75 airborne particles of a size less than or equal to 0.2 µm (micrometres) in diameter and no airborne particles of a size greater than 0.2 µm (micrometres) in diameter,

  • (c) not more than 30 airborne particles of a size less than or equal to 0.3 µm (micrometres) in diameter and no airborne particles of a size greater than 0.3 µm (micrometres) in diameter, or

  • (d) not more than 10 airborne particles of a size less than or equal to 0.5 µm (micrometres) in diameter and no airborne particles of a size greater than 0.5 µm (micrometres) in diameter.

• (2) Subsection (1) applies in respect of property acquired on or after December 16, 2024 and, in the case of lease costs, to amounts that first become payable on or after December 16, 2024.

• 110 (1) Subparagraph 3100(1)(b)(i) of the Regulations is replaced by the following:

  • (i) as a form of assistance from a government, municipality or other public authority, whether as a grant, a subsidy, a forgivable loan, a deduction from tax (other than an amount described in clause (b)(i)(B) of the definition tax shelter in subsection 237.1(1) of the Act) or an investment allowance, or as any other form of assistance, other than an excluded loan as defined in subsection 12(11) of the Act, or

• (2) Subsection 3100(3) of the Regulations 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) where the amount is an excluded loan as defined in subsection 12(11) of the Act.

• (3) Subsections (1) and (2) are deemed to have come into force on January 1, 2022.

• 111 (1) Section 5700 of the Regulations is amended by striking out "and" at the end of paragraph (z.3), by adding "and" at the end of paragraph (z.4) and by adding the following after paragraph (z.4):

  • (z.5) navigation device for low vision for an individual who has a vision impairment.

• (2) Subsection (1) applies to the 2024 and subsequent taxation years.

• 112 (1) Subparagraph (iii) of the description of A in the definition exempt surplus in subsection 5907(1) of the Regulations is replaced by the following:

  • (iii) the portion of any dividend received in the period and before the particular time by the subject affiliate from another foreign affiliate of the corporation (including, for greater certainty, any dividend deemed under subsection 5905(7) to have been received by the subject affiliate) that was prescribed under paragraph 5900(1)(a) to have been paid out of the payer affiliate's exempt surplus in respect of the corporation to the extent that it

    • (A) does not give rise to the application of subsection 12.7(3) of the Act in computing the foreign accrual property income of a foreign affiliate of a taxpayer, and

    • (B) is excluded in computing the subject affiliate's foreign accrual property income because of subparagraph (b)(i) or (ii) of the description of A, or because an amount is determined for H, in the definition foreign accrual property income in subsection 95(1) of the Act,

• (2) Subparagraph (iv) of the description of A in the definition hybrid surplus in subsection 5907(1) of the Regulations is replaced by the following:

  • (iv) the portion of any dividend received in the period and before the particular time by the subject affiliate from another foreign affiliate of the corporation (including, for greater certainty, any dividend deemed under subsection 5905(7) to have been received by the subject affiliate) that was prescribed under paragraph 5900(1)(a.1) to have been paid out of the payer affiliate's hybrid surplus in respect of the corporation to the extent that it

    • (A) does not give rise to the application of subsection 12.7(3) of the Act in computing the foreign accrual property income of a foreign affiliate of a taxpayer, and

    • (B) is excluded in computing the subject affiliate's foreign accrual property income because of subparagraph (b)(i) or (ii) of the description of A, or because an amount is determined for H, in the definition foreign accrual property income in subsection 95(1) of the Act, or

• (3) Subparagraph (iii) of the description of A in the definition hybrid underlying tax in subsection 5907(1) of the Regulations is replaced by the following:

  • (iii) the total of all amounts each of which is an amount determined by the formula

    C × D ÷ E

    where

    C

    is the amount that was prescribed under paragraph 5900(1)(c.1) to have been the foreign tax applicable to the portion (referred to in this subparagraph as the "relevant portion") of a dividend received in the period and before the particular time by the subject affiliate from another foreign affiliate of the corporation (including, for greater certainty, a dividend deemed under subsection 5905(7) to have been received by the subject affiliate) that was prescribed under paragraph 5900(1)(a.1) to have been paid out of the payer affiliate's hybrid surplus in respect of the corporation,

    D

    is the amount included under subparagraph (iv) of the description of A in the definition hybrid surplus, in respect of the relevant portion of the dividend received, in computing the subject affiliate's hybrid surplus, and

    E

    is the relevant portion of the dividend received, or

• (4) Subparagraph (iii) of the description of A in the definition taxable surplus in subsection 5907(1) of the Regulations is replaced by the following:

  • (iii) the portion of any dividend received in the period and before the particular time by the subject affiliate from another foreign affiliate of the corporation (including, for greater certainty, any dividend deemed under subsection 5905(7) to have been received by the subject affiliate) that was prescribed under paragraph 5900(1)(b) to have been paid out of the payer affiliate's taxable surplus in respect of the corporation to the extent that it

    • (A) does not give rise to the application of subsection 12.7(3) of the Act in computing the foreign accrual property income of a foreign affiliate of a taxpayer, and

    • (B) is excluded in computing the subject affiliate's foreign accrual property income because of subparagraph (b)(i) or (ii) of the description of A, or because an amount is determined for H, in the definition foreign accrual property income in subsection 95(1) of the Act,

• (5) Subparagraph (iv) of the description of A in the definition underlying foreign tax in subsection 5907(1) of the Regulations is replaced by the following:

  • (iv) the total of all amounts each of which is an amount determined by the formula

    C × D ÷ E

    where

    C

    is the amount that was prescribed under paragraph 5900(1)(d) to have been the foreign tax applicable to the portion (referred to in this subparagraph as the "relevant portion") of a dividend received in the period and before the particular time by the subject affiliate from another foreign affiliate of the corporation (including, for greater certainty, a dividend deemed under subsection 5905(7) to have been received by the subject affiliate) that was prescribed under paragraph 5900(1)(b) to have been paid out of the payer affiliate's taxable surplus in respect of the corporation,

    D

    is the amount included under subparagraph (iii) of the description of A in the definition taxable surplus, in respect of the relevant portion of the dividend received, in computing the subject affiliate's taxable surplus, and

    E

    is the relevant portion of the dividend received, or

• (6) Subsections (1) to (5) apply in respect of any dividend received on or after July 1, 2024.

• 113 (1) The portion of section 8201 of the Regulations before paragraph (a) is replaced by the following:

  8201 For the purposes of subsection 16.1(1), the definition outstanding debts to specified non-residents in subsection 18(5), subsections 100(1.3), 112(2), 125.4(1) and 125.5(1), the definition taxable supplier in subsection 127(9), subparagraph 128.1(4)(b)(ii), paragraphs 181.3(5)(a) and 190.14(2)(b), section 233.8, the definition Canadian banking business in subsection 248(1) and paragraph 260(5)(a) of the Act, a permanent establishment of a person or partnership (either of whom is referred to in this section as the "person") means a fixed place of business of the person, including an office, a branch, a mine, an oil well, a farm, a timberland, a factory, a workshop or a warehouse if the person has a fixed place of business and, where the person does not have any fixed place of business, the principal place at which the person's business is conducted, and

• (2) Subsection (1) is deemed to have come into force on January 1, 2025.

• 114 (1) Section 8517 of the Regulations is amended by adding the following after subsection (7):

  • (8) For the purposes of this section, if subsection 147.4(5) of the Act deems an amount to be transferred under a defined benefit provision (as defined in subsection 147.1(1) of the Act) of a registered pension plan, the benefits payable under the annuity contract are deemed to be benefits payable under the provision.

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

• 115 (1) Section 9002 of the Regulations is amended by adding the following after subsection (3):

  • (4) For the purpose of subsection (3), if a partnership, at a particular time, owns or holds shares of a corporation (or is deemed under this subsection to own or hold shares of a corporation) that have a fair market value of at least 50% of all the issued shares of the corporation,

    • (a) the partnership is deemed not to exist at that time; and

    • (b) each member of the partnership is deemed to own or hold at that time that proportion of shares of any class of the capital stock of the corporation that are property of the partnership at that time, that the fair market value of the member's interest in the partnership is of the fair market value of all interests in the partnership at that time.

  • (5) For the purpose of paragraph (3)(b), a subsidiary wholly-owned corporation of a credit union is deemed to be a credit union.

• (2) Subsection (1) applies to taxation years that begin after 2023.

• 116 (1) The portion of paragraph (a) of Class 43.1 in Schedule II to the Regulations after subparagraph (v) is replaced by the following:

  other than buildings or other structures, heat rejection equipment (such as condensers and cooling water systems), transmission equipment, distribution equipment, fuel handling equipment that is not used to upgrade the combustible portion of the fuel, pollution abatement equipment and fuel storage facilities,

• (2) Clause (d)(ii)(B) of Class 43.1 in Schedule II to the Regulations is replaced by the following:

  • (B) is the electrical generating equipment and plant (including structures) of that producer including a canal, a dam, a dyke, an overflow spillway, a penstock, a powerhouse (complete with electrical generating equipment and other ancillary equipment), control equipment, fishways or fish bypasses, and eligible transmission equipment,

• (3) Subparagraph (d)(iv) of Class 43.1 in Schedule II to the Regulations is replaced by the following:

  • (iv) heat recovery equipment used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of conserving energy, reducing the requirement to acquire energy or extracting heat for sale, by extracting for reuse thermal waste that is generated directly in an industrial process (other than an industrial process that generates or processes electrical energy), including such equipment that consists of heat exchange equipment, compressors used to upgrade low pressure steam, vapour or gas, waste heat boilers and other ancillary equipment such as control panels, fans, instruments or pumps, but not including property that is employed in re-using the recovered heat (such as property that is part of the internal heating or cooling system of a building or electrical generating equipment), is pollution abatement equipment, or is a building,

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

  • (IV) eligible transmission equipment,

• (5) 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 eligible transmission equipment, but not including

• (6) 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 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, eligible transmission equipment and ancillary equipment used to collect the geothermal heat, but not including buildings, distribution equipment, 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),

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

  • (viii) equipment used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of collecting landfill gas or digester gas, including such equipment that consists of piping (including above or below ground piping and the cost of drilling a well, or trenching, for the purpose of installing that piping), fans, compressors, storage tanks, heat exchangers and related equipment used to collect gas, to remove non-combustibles and contaminants from the gas or to store the gas, but not including pollution abatement equipment and property otherwise included in Class 10 or 17,

• (8) Clause (d)(ix)(D) of Class 43.1 in Schedule II to the Regulations is amended by striking out "and" at the end of subclause (V), by adding "and" at the end of subclause (VI) and by adding the following after subclause (VI):

  • (VII) pollution abatement equipment,

• (9) Subparagraph (d)(xi) of Class 43.1 in Schedule II to the Regulations is amended by striking out "and" at the end of clause (E), by adding "and" at the end of clause (F) and by adding the following after clause (F):

  • (G) pollution abatement equipment,

• (10) Subparagraph (d)(xiii) of Class 43.1 in Schedule II to the Regulations is amended by striking out "and" at the end of clause (C), by adding "and" at the end of clause (D) and by adding the following after clause (D):

  • (E) pollution abatement equipment,

• (11) 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, including support structures, control and conditioning equipment, submerged cables and eligible 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),

• (12) Subparagraph (d)(xiv) of Class 43.1 in Schedule II to the Regulations, as enacted by subsection (11), is replaced by the following:

  • (xiv) fixed location 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, including support structures, control and conditioning equipment, submerged cables and eligible 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),

• (13) Clause (d)(xvi)(D) of Class 43.1 in Schedule II to the Regulations is amended by striking out "and" at the end of subclause (III), by adding "and" at the end of subclause (IV) and by adding the following after subclause (IV):

  • (V) pollution abatement equipment,

• (14) Subclause (d)(xviii)(A)(II) of Class 43.1 in Schedule II to the Regulations is replaced by the following:

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

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

  • (xix) a pumped hydroelectric energy storage installation all or substantially all of the use of which by the taxpayer, or by a lessee of the taxpayer, is to store and discharge electrical energy including reversing turbines, eligible transmission equipment, dams, reservoirs and related structures, and that meets the condition in either subclause (d)(xviii)(B)(I) or (II) in this Class, but not including

• (16) Subparagraph (d)(xx) of Class 43.1 in Schedule II to the Regulations is amended by striking out "and" at the end of clause (C), by adding "and" at the end of clause (D) and by adding the following after clause (D):

  • (E) pollution abatement equipment,

• (17) Subsections (2), (4) to (6), (11), (14) and (15) apply to property that is acquired and becomes available for use on or after the day on which the notice of a ways and means motion in respect of this section is tabled in the House of Commons.

• 117 (1) The portion of Class 56 in Schedule II to the Regulations after the heading "CLASS 56" and before paragraph (a) is replaced by the following:

  Property that is acquired, and becomes available for use, by a taxpayer after March 1, 2020 and before 2034, if the property

• (2) Paragraph (b) of Class 56 in Schedule II to the Regulations is replaced by the following:

  • (b) would be accelerated investment incentive property or reaccelerated investment incentive property of the taxpayer if subsections 1104(4) and (4.01) were read without their exclusions for property included in Class 56.

• (3) Subsections (1) and (2) are deemed to have come into force on January 1, 2025.

• 118 (1) The portion of paragraph (a) of Class 57 in Schedule II to the Regulations before clause (i)(A) is replaced by the following:

  • (a) equipment, other than excluded CCUS equipment, that

    • (i) is to be used solely for capturing carbon dioxide

• (2) Paragraph (g) of Class 57 in Schedule II to the Regulations is replaced by the following:

  • (g) property that is

    • (i) incorporated into another property that would not otherwise be described in any of paragraphs (a) to (f) if the incorporation causes the other property to satisfy the description in any of paragraphs (a) to (f), or

    • (ii) used solely to refurbish property described in any of paragraphs (a) to (f) that is part of a CCUS project of the taxpayer.

• (3) Subsections (1) and (2) are deemed to have come into force on January 1, 2022.

• 119 (1) Paragraph (e) of Class 58 in Schedule II to the Regulations is replaced by the following:

  • (e) property that is

    • (i) incorporated into another property that would not otherwise be described in any of paragraphs (a) to (d) if the incorporation causes the other property to satisfy the description in any of paragraphs (a) to (d), or

    • (ii) used solely to refurbish property described in any of paragraphs (a) to (d) that is part of a CCUS project of the taxpayer.

• (2) Subsection (1) is deemed to have come into force on January 1, 2022.

• 120 (1) Paragraph 1(a) of Schedule IV to the Regulations is amended by striking out "and" at the end of subparagraph (i) and by adding the following after that subparagraph:

  • (i.1) if the property is a reaccelerated investment incentive property acquired in the year,

    • (A) if the property is acquired before 2030, 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 2029, 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

• (2) Subsection (1) is deemed to have come into force on January 1, 2025.

• 121 (1) Paragraphs (a) and (b) of the description of A in section 2 of Schedule V to the Regulations are replaced by the following:

  • (a) 1.5, if the property is an accelerated investment incentive property acquired before 2024 or a reaccelerated investment incentive property acquired before 2030,

  • (b) 1.25, if the property is an accelerated investment incentive property acquired after 2023 or a reaccelerated investment incentive property acquired after 2029, and

• (2) Subsection (1) is deemed to have come into force on January 1, 2025.

• 122 (1) Paragraphs (a) and (b) of the description of A in section 2 of Schedule VI to the Regulations are replaced by the following:

  • (a) 1.5, if the property is an accelerated investment incentive property acquired before 2024 or a reaccelerated investment incentive property acquired before 2030,

  • (b) 1.25, if the property is an accelerated investment incentive property acquired after 2023 or a reaccelerated investment incentive property acquired after 2029, and

• (2) Subsection (1) is deemed to have come into force on January 1, 2025.

• 123 (1) The French version of the Regulations is amended by replacing "troisième" with "quatrième" in the following provisions:

  • (a) subparagraph 1100(1)(ta)(v) and subclause 1100(1)(v)(iv)(B)(II);

  • (b) paragraph 1100(2.02)(b);

  • (c) paragraph 1100(2.2)(h); and

  • (d) subsection 1100(2.3).

• (2) Subsection (1) is deemed to have come into force on January 1, 2025.

Payment out of Consolidated Revenue Fund

Marginal note:Payment out of Consolidated Revenue Fund

124 Any amount payable by the Minister of National Revenue in relation to the application of subsection 127.491(2) of the Income Tax Act is to be paid out of the Consolidated Revenue Fund.

Coordinating Amendments

Marginal note:Bill C-4

125 If Bill C-4, introduced in the 1st session of the 45th Parliament and entitled the Making Life More Affordable for Canadians Act, receives royal assent, then

• (a) section 118 of the Income Tax Act is amended by adding the following after subsection (10):

  • Marginal note:Top-up tax credit

    (11) For the purpose of computing the tax payable under this Part by an individual for a taxation year that is after 2024 and before 2031, there may be deducted the amount determined by the formula

    (A − B × C) × D

    where

    A

    is the amount determined by the formula

    E + F

    where

    E

    is the total of all amounts each of which is an amount deducted by the individual in computing the individual's tax payable for the year under this Part under any of subsections (1), (2), (3) and (10), and sections 118.01, 118.041, 118.05, 118.06, 118.07, 118.2, 118.3, 118.5, 118.61, 118.62, 118.7, 118.8 and 118.9, and

    F

    is the lesser of

    • (a) the amount deducted by the individual in computing the individual's tax payable for the year under this Part under section 118.1, and

    • (b) $200 multiplied by the appropriate percentage for the year;

    B

    is the appropriate percentage for the year;

    C

    is the first dollar amount for the year referred to in paragraph 117(2)(b); and

    D

    is,

    • (a) if the taxation year is 2025, 3.45%, and

    • (b) in any other case, 7.14%.

• (b) the description of C in subsection 118.61(1) of the Income Tax Act is replaced by the following:

  C

  is the lesser of the value of B and the amount that would be the individual's tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under this section and any of subsections 118(1) to (10) and sections 118.01 to 118.07, 118.3 and 118.7);

• (c) paragraph 118.61(2)(b) of the Income Tax Act is replaced by the following:

  • (b) the amount that would be the individual's tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under this section and any of subsections 118(1) to (10) and sections 118.01 to 118.07, 118.3 and 118.7).

• (d) subsection 118(11) of the Income Tax Act, as enacted by paragraph (a), is deemed to have come into force on January 1, 2025;

• (e) the description of C in subsection 118.61(1) of the Income Tax Act, as enacted by paragraph (b), is deemed to have come into force on January 1, 2025; and

• (f) paragraph 118.61(2)(b) of the Income Tax Act, as enacted by paragraph (c), is deemed to have come into force on January 1, 2025.

PART 2Digital Services Tax (Repeals and Other Measures)

Repeals

Marginal note:Repeal

• 126 (1) The Digital Services Tax Act, section 96 of chapter 15 of the Statutes of Canada, 2024, is repealed.

• (2) Subsection (1) is deemed to have come into force on June 20, 2024.

Marginal note:Repeal

• 127 (1) The Digital Services Tax Regulations, section 97 of chapter 15 of the Statutes of Canada, 2024, are repealed.

• (2) Subsection (1) is deemed to have come into force on June 20, 2024.

Transitional Provisions

• 128 (1) If a person has, before the day on which this Act receives royal assent, paid an amount to His Majesty in right of Canada and the amount, in the absence of section 126, would have been taken into account by His Majesty in right of Canada as tax, a penalty, interest or other amount under the Digital Services Tax Act, the Minister of National Revenue must refund to the person the amount, together with interest on the amount at the rate determined under paragraph 2(1)(a) of the Interest Rates (Excise Act, 2001) Regulations, for the period beginning on the day on which the amount was received by the Receiver General for Canada and ending on the day on which the refund is paid.

• (2) Any refund payable by the Minister of National Revenue under subsection (1) is to be paid out of the Consolidated Revenue Fund.

Consequential Amendments

R.S., c. A-1Access to Information Act

129 Schedule II to the Access to Information Act is amended by striking out the reference to

• Digital Services Tax Act

  Loi sur la taxe sur les services numériques

and the corresponding reference to "section 108".

R.S., c. B-3; 1992, c. 27, s. 2Bankruptcy and Insolvency Act

130 Subsection 149(3) of the Bankruptcy and Insolvency Act is amended by adding "and" at the end of paragraph (i) and by repealing paragraph (j).

R.S., c. C-46Criminal Code

131 Paragraph 462.48(2)(c) of the Criminal Code is replaced by the following:

• (c) the type of information or book, record, writing, return or other document obtained by or on behalf of the Minister of National Revenue for the purposes of Part IX of the Excise Tax Act, the Income Tax Act, the Excise Act, 2001, the Underused Housing Tax Act, the Select Luxury Items Tax Act or the Global Minimum Tax Act to which access is sought or that is proposed to be examined or communicated; and

R.S., c. E-15Excise Tax Act

132 Section 77 of the Excise Tax Act is replaced by the following:

Marginal note:Restriction on refunds and credits

77 A refund shall not be paid, and a credit shall not be allowed, to a person under this Act until the person has filed with the Minister all returns and other records of which the Minister has knowledge that are required to be filed under the Excise Tax Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001, the Underused Housing Tax Act, the Select Luxury Items Tax Act and the Global Minimum Tax Act.

133 Subsection 229(2) of the Act is replaced by the following:

• Marginal note:Restriction

  (2) A net tax refund for a reporting period of a person shall not be paid to the person under subsection (1) at any time unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001, the Underused Housing Tax Act, the Select Luxury Items Tax Act and the Global Minimum Tax Act have been filed with the Minister.

134 Subsection 230(2) of the Act is replaced by the following:

• Marginal note:Restriction

  (2) An amount paid on account of net tax for a reporting period of a person shall not be refunded to the person under subsection (1) at any time unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001, the Underused Housing Tax Act, the Select Luxury Items Tax Act and the Global Minimum Tax Act have been filed with the Minister.

135 Subparagraph 238.1(2)(c)(iii) of the Act is replaced by the following:

• (iii) all amounts required under this Act (other than this Part), sections 21 and 33 of the Canada Pension Plan, the Excise Act, the Customs Act, the Income Tax Act, section 82 and Part VII of the Employment Insurance Act, the Customs Tariff, the Excise Act, 2001, the Underused Housing Tax Act, the Select Luxury Items Tax Act and the Global Minimum Tax Act to be remitted or paid before that time by the registrant have been remitted or paid, and

136 Section 263.02 of the Act is replaced by the following:

Marginal note:Restriction on rebate

263.02 A rebate under this Part shall not be paid to a person at any time unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001, the Underused Housing Tax Act, the Select Luxury Items Tax Act and the Global Minimum Tax Act have been filed with the Minister.

137 Subsection 296(7) of the Act is replaced by the following:

• Marginal note:Restriction on refunds

  (7) An amount under this section shall not be refunded to a person at any time unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001, the Underused Housing Tax Act, the Select Luxury Items Tax Act and the Global Minimum Tax Act have been filed with the Minister.

R.S., c. E-20; 2001, c. 33, s. 2(F)Export Development Act

138 Paragraph 24.3(2)(c) of the Export Development Act is replaced by the following:

• (c) to the Minister of National Revenue solely for the purpose of administering or enforcing the Excise Tax Act, the Income Tax Act, the Select Luxury Items Tax Act or the Global Minimum Tax Act; or

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

139 Paragraph 155.2(6)(c) of the Financial Administration Act is replaced by the following:

• (c) an amount owing by a person to His Majesty in right of Canada, or payable by the Minister of National Revenue to any person, under the Excise Tax Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001, the Softwood Lumber Products Export Charge Act, 2006, the Underused Housing Tax Act, the Select Luxury Items Tax Act or the Global Minimum Tax Act.

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

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

  Marginal note:Jurisdiction

  • 12 (1) The Court has exclusive original jurisdiction to hear and determine references and appeals to the Court on matters arising under the Canada Pension Plan, the Cultural Property Export and Import Act, Part IX of the Excise Tax Act, the Old Age Security Act, the Petroleum and Gas Revenue Tax Act, Part V.1 of the Customs Act, the Income Tax Act, the Employment Insurance Act, the Air Travellers Security Charge Act, the Excise Act, 2001, the Softwood Lumber Products Export Charge Act, 2006, the Disability Tax Credit Promoters Restrictions Act, Part 1 of the Greenhouse Gas Pollution Pricing Act, the Underused Housing Tax Act, the Select Luxury Items Tax Act and the Global Minimum Tax Act when references or appeals to the Court are provided for in those Acts.

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

  • Marginal note:Further jurisdiction

    (3) The Court has exclusive original jurisdiction to hear and determine questions referred to it under section 310 or 311 of the Excise Tax Act, section 97.58 of the Customs Act, section 173 or 174 of the Income Tax Act, section 51 or 52 of the Air Travellers Security Charge Act, section 204 or 205 of the Excise Act, 2001, section 62 or 63 of the Softwood Lumber Products Export Charge Act, 2006, section 121 or 122 of the Greenhouse Gas Pollution Pricing Act, section 45 or 46 of the Underused Housing Tax Act, section 105 or 106 of the Select Luxury Items Tax Act or section 95 or 96 of the Global Minimum Tax Act.

  • Marginal note:Extensions of time

    (4) The Court has exclusive original jurisdiction to hear and determine applications for extensions of time under subsection 28(1) of the Canada Pension Plan, section 33.2 of the Cultural Property Export and Import Act, section 304 or 305 of the Excise Tax Act, section 97.51 or 97.52 of the Customs Act, section 166.2 or 167 of the Income Tax Act, subsection 103(1) of the Employment Insurance Act, section 45 or 47 of the Air Travellers Security Charge Act, section 197 or 199 of the Excise Act, 2001, section 115 or 117 of the Greenhouse Gas Pollution Pricing Act, section 39 or 41 of the Underused Housing Tax Act, section 99 or 101 of the Select Luxury Items Tax Act or section 89 or 91 of the Global Minimum Tax Act.

141 Paragraph 18.29(3)(a) of the Act is amended by adding "or" at the end of subparagraph (ix), by replacing "or" with "and" at the end of subparagraph (x) and by repealing subparagraph (xi).

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

• Marginal note:Determination of a question

  (2) If it is agreed under section 310 of the Excise Tax Act, section 97.58 of the Customs Act, section 51 of the Air Travellers Security Act, section 204 of the Excise Act, 2001, section 62 of the Softwood Lumber Products Export Act, 2006, section 121 of the Greenhouse Gas Pollution Pricing Act, section 45 of the Underused Housing Tax Act, section 105 of the Select Luxury Items Tax Act or section 95 of the Global Minimum Tax Act that a question should be determined by the Court, sections 17.1, 17.2 and 17.4 to 17.8 apply, with any modifications that the circumstances require, in respect of the determination of the question.

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

• Marginal note:Provisions applicable to determination of a question

  (2) If an application has been made under section 311 of the Excise Tax Act, section 52 of the Air Travellers Security Charge Act, section 205 of the Excise Act, 2001, section 63 of the Softwood Lumber Products Export Charge Act, 2006, section 122 of the Greenhouse Gas Pollution Pricing Act, section 46 of the Underused Housing Tax Act, section 106 of the Select Luxury Items Tax Act or section 96 of the Global Minimum Tax Act for the determination of a question, the application or determination of the question must, subject to section 18.33, be determined in accordance with sections 17.1, 17.2 and 17.4 to 17.8, with any modifications that the circumstances require.

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

144 Paragraph 18(1)(t) of the Income Tax Act is amended by adding "or" at the end of subparagraph (v) and by repealing subparagraph (vi).

145 Subsection 164(2.01) of the Act is replaced by the following:

• Marginal note:Withholding of refunds

  (2.01) The Minister shall not, in respect of a taxpayer, refund, repay, apply to other debts or set-off amounts under this Act at any time unless all returns of which the Minister has knowledge and that are required to be filed by the taxpayer at or before that time under this Act, the Excise Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001, the Underused Housing Tax Act, the Select Luxury Items Tax Act and the Global Minimum Tax Act have been filed with the Minister.

146 The portion of subsection 221.2(2) of the Act before paragraph (a) is replaced by the following:

• Marginal note:Re-appropriation of amounts

  (2) If a particular amount was appropriated to an amount (in this section referred to as the "debt") that is or may become payable by a person under this Act, the Excise Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001, the Underused Housing Tax Act, the Select Luxury Items Tax Act or the Global Minimum Tax Act, the Minister may, on application by the person, appropriate the particular amount, or a part of it, to another amount that is or may become payable under any of those Acts and, for the purposes of any of those Acts,

1999, c. 17; 2005, c. 38, s. 35Canada Revenue Agency Act

147 Paragraph (a) of the definition program legislation in section 2 of the Canada Revenue Agency Act is amended by adding "and" at the end of subparagraph (x) and by repealing subparagraph (xi).

2002, c. 9, s. 5Air Travellers Security Charge Act

148 Subsection 40(4) of the Air Travellers Security Charge Act is replaced by the following:

• Marginal note:Restriction

  (4) A refund shall not be paid until the person has filed with the Minister all returns and other records of which the Minister has knowledge that are required to be filed under this Act, the Excise Tax Act, the Income Tax Act, the Excise Act, 2001, the Underused Housing Tax Act, the Select Luxury Items Tax Act and the Global Minimum Tax Act.

2002, c. 22Excise Act, 2001

• 149 (1) Paragraph 188(6)(a) of the Excise Act, 2001 is replaced by the following:

  • (a) the Minister under this Act, the Excise Act, the Excise Tax Act, the Income Tax Act, the Air Travellers Security Charge Act, the Underused Housing Tax Act, the Select Luxury Items Tax Act and the Global Minimum Tax Act; or

• (2) Clause 188(7)(b)(ii)(A) of the Act is replaced by the following:

  • (A) the Minister under this Act, the Excise Act, the Excise Tax Act, the Income Tax Act, the Air Travellers Security Charge Act, the Underused Housing Tax Act, the Select Luxury Items Tax Act and the Global Minimum Tax Act, or

150 Subsection 189(4) of the Act is replaced by the following:

• Marginal note:Restriction

  (4) A refund shall not be paid until the person has filed with the Minister or the Minister of Public Safety and Emergency Preparedness all returns and other records of which the Minister has knowledge and that are required to be filed under this Act, the Excise Act, the Excise Tax Act, the Customs Act, the Income Tax Act, the Air Travellers Security Charge Act, the Underused Housing Tax Act, the Select Luxury Items Tax Act and the Global Minimum Tax Act.

2022, c. 5, s. 10Underused Housing Tax Act

151 Section 34 of the Underused Housing Tax Act is replaced by the following:

Marginal note:Restriction on payment by Minister

34 An amount under section 33 is not to be paid to a person by the Minister at any time, unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Excise Tax Act, the Income Tax Act, the Excise Act, 2001, the Air Travellers Security Charge Act, Part 1 of the Greenhouse Gas Pollution Pricing Act, the Select Luxury Items Tax Act and the Global Minimum Tax Act have been filed with the Minister.

2022, c. 10, s. 135Select Luxury Items Tax Act

152 Section 45 of the Select Luxury Items Tax Act is replaced by the following:

Marginal note:Restriction on rebate

45 A rebate under this Subdivision is not to be paid to a person at any time unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Excise Tax Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001, Part 1 of the Greenhouse Gas Pollution Pricing Act, the Underused Housing Tax Act and the Global Minimum Tax Act have been filed with the Minister.

153 Section 48 of the Act is replaced by the following:

Marginal note:Restriction — bankruptcy

48 If a trustee is appointed under the Bankruptcy and Insolvency Act to act in the administration of the estate or succession of a bankrupt, a rebate under this Division that the bankrupt was entitled to claim before the appointment must not be paid after the appointment unless all returns required to be filed in respect of the bankrupt under this Act, the Excise Tax Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001, Part 1 of the Greenhouse Gas Pollution Pricing Act, the Underused Housing Tax Act and the Global Minimum Tax Act in respect of periods ending before the appointment have been filed and all amounts required to be paid under that Part and those Acts by the bankrupt in respect of those periods have been paid.

154 The portion of subsection 53(3) of the Act before the formula is replaced by the following:

• Marginal note:Failure to comply

  (3) If, at any time, a person referred to in subsection (1) or (2) fails to give or maintain security in an amount satisfactory to the Minister, the Minister may retain as security, out of any amount that may be or may become payable to the person under this Act, the Excise Tax Act, the Excise Act, 2001, Part 1 of the Greenhouse Gas Pollution Pricing Act, the Underused Housing Tax Act or the Global Minimum Tax Act, an amount not exceeding the amount determined by the formula

155 Subsection 57(6) of the Act is replaced by the following:

• Marginal note:Restriction — rebate of net tax

  (6) A rebate under subsection (4) is not to be paid to a person at any time unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Excise Tax Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001, Part 1 of the Greenhouse Gas Pollution Pricing Act, the Underused Housing Tax Act and the Global Minimum Tax Act have been filed with the Minister.

156 Section 94 of the Act is replaced by the following:

Marginal note:Restriction on payment by Minister

94 An amount under section 92 or 93 is not to be paid to a person by the Minister at any time, unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Excise Tax Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001, Part 1 of the Greenhouse Gas Pollution Pricing Act, the Underused Housing Tax Act and the Global Minimum Tax Act have been filed with the Minister.

2024, c. 17, s. 81Global Minimum Tax Act

157 The description of B in paragraph 67(2)(a) of the Global Minimum Tax Act is replaced by the following:

B

is the total of all amounts, if any, the transferee was assessed under paragraph 97.44(1)(b) of the Customs Act, subsection 325(2) of the Excise Tax Act, subsection 160(2) of the Income Tax Act, subsection 297(3) of the Excise Act, 2001, subsection 161(1) of the Greenhouse Gas Pollution Pricing Act, subsection 80(3) of the Underused Housing Tax Act or subsection 150(4) of the Select Luxury Items Tax Act in respect of the property, and

158 Section 77 of the Act is replaced by the following:

Marginal note:Restriction — unfulfilled filing requirements

77 The Minister must not, in respect of a person, refund, repay, apply to other debts or set off amounts under this Act until the person has filed with the Minister all returns and other records of which the Minister has knowledge that are required to be filed under this Act, the Income Tax Act, the Excise Tax Act, the Excise Act, 2001, the Air Travellers Security Charge Act, the Greenhouse Gas Pollution Pricing Act, the Underused Housing Tax Act and the Select Luxury Items Tax Act.

PART 3Amendments to the Excise Tax Act (GST/HST), the Underused Housing Tax Act, the Select Luxury Items Tax Act and Other Related Texts

DIVISION 1GST/HST Measures

R.S., c. E-15Excise Tax Act

• 159 (1) The portion of subsection 181(5) of the Excise Tax Act before paragraph (a) is replaced by the following:

  • Marginal note:Redemption of coupon

    (5) For the purposes of this Part, if, in full or partial consideration for a taxable supply of property or a service, a supplier that is a registrant accepts a coupon that may be exchanged for the property or service or that entitles the recipient of the supply to a reduction of, or a discount on, the price of the property or service and a particular person at any time pays, exclusively in the course of commercial activities of the particular person, an amount to the supplier for the redemption of the coupon, the following rules apply:

• (2) Section 181 of the Act is amended by adding the following after subsection (5):

  • Marginal note:Redemption – commercial activities

    (6) For the purposes of subsection (5), a payment is made by a person exclusively in the course of commercial activities of the person only if

    • (a) the person is not a financial institution and all or substantially all of the activities in the course of which the payment is made are commercial activities; or

    • (b) the person is a financial institution and all of the activities in the course of which the payment is made are commercial activities.

• (3) Subsections (1) and (2) are deemed to have come into force on August 16, 2025. They also apply in respect of any payment made by a person before August 16, 2025 to a supplier for the redemption of a coupon if the person has not claimed an input tax credit in respect of the payment in a return under Division V of Part IX of the Act that is filed before August 16, 2025.

• 160 (1) Subsection 191(9) of the Act is replaced by the following:

  • Marginal note:Substantial completion

    (9) For the purposes of this section, subsection 256.2(3.1) and the Real Property (GST/HST) Regulations, the construction or substantial renovation of a multiple unit residential complex or a condominium complex, or the construction of an addition to a multiple unit residential complex, shall be deemed to be substantially completed not later than the day all or substantially all of the residential units in the complex or addition are occupied after the construction or substantial renovation is begun.

• (2) Subsection (1) is deemed to have come into force on September 14, 2023.

• 161 (1) Section 256.2 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Purpose-built rental housing – student residence

    (2.01) For the purposes of applying this section and the Real Property (GST/HST) Regulations (other than prescribed provisions) in respect of a taxable supply of property that is a residential complex or an addition to a residential complex, if the taxable supply and the property meet the conditions described in paragraph (3.1)(a) or (b), clause (a)(iii)(A) of the definition qualifying residential unit in subsection (1) is to be read as follows:

    • (A) as the primary place of residence of the person or a relation of the person, or of a lessor of the complex or a relation of that lessor, for a period of at least one year or for a shorter period where the next use of the unit after that shorter period is as described in clause (B),

    • (A.1) if the person is a university that is established and operated otherwise than for profit, a public college that is established and operated otherwise than for profit or a school authority that is established and operated otherwise than for profit, as a place of residence for students attending the university, the public college or a school of the school authority, or

• (2) The portion of subsection 256.2(3) of the Act after paragraph (d) and before the first formula in that subsection is replaced by the following:

  the Minister shall, subject to subsections (3.1) to (3.4), (7) and (8), pay a rebate to the person equal to the total of all amounts each of which is an amount, in respect of a residential unit that forms part of the residential complex or addition, as the case may be, and is a qualifying residential unit of the person at the particular time, determined by the formula

• (3) The description of B in subsection 256.2(3.2) of the Act is replaced by the following:

  B

  is the unit's percentage of total floor space.

• (4) Section 256.2 of the Act is amended by adding the following after subsection (3.2):

  • Marginal note:Purpose-built rental housing – student residence

    (3.3) The rules set out in subsection (3.4) apply in respect of the construction or substantial renovation of a residential complex or an addition to a multiple unit residential complex if the following conditions are met:

    • (a) the builder of the residential complex or addition is a university, a public college or a school authority;

    • (b) the construction or substantial renovation of the residential complex or addition is carried out primarily for the purpose of providing a place of residence for students attending the university, the public college or a school of the school authority;

    • (c) the builder would, in the absence of subsection 191(6), be deemed under section 191 to have made and received, at a particular time, a taxable supply by way of sale of the residential complex or addition; and

    • (d) in respect of the taxable supply referred to in paragraph (c) that would, in the absence of subsection 191(6), be deemed under section 191 to have been made and received by the builder, it is the case that

      • (i) the residential complex or addition is property prescribed for the purposes of subsection (3.1), determined as if the deemed purchase referred to in subparagraph (3)(a)(ii) were the taxable supply and the particular time referred to in paragraph (3)(b) were the particular time referred to in paragraph (c), and

      • (ii) the taxable supply and the residential complex or addition meet the conditions prescribed for the purposes of subsection (3.1) and the conditions described in paragraph (3.1)(a) or (b).

  • Marginal note:Amount of rebate – student residence

    (3.4) If the conditions set out in subsection (3.3) are met in respect of the construction or substantial renovation of a residential complex or an addition to a multiple unit residential complex, for the purposes of applying subsection (3) in respect of the construction or substantial renovation of the residential complex or addition, the following rules apply:

    • (a) the conditions in subparagraph (3)(a)(ii) and paragraphs (3)(b) to (d) are deemed to be met at the particular time referred to in paragraph (3.3)(c);

    • (b) the deemed purchase referred to in subparagraph (3)(a)(ii) is deemed to be the taxable supply referred to in paragraph (3.3)(c) that would, in the absence of subsection 191(6), be deemed under section 191 to have been made and received by the builder of the residential complex or addition;

    • (c) the particular time referred to in paragraph (3)(b) is deemed to be the particular time referred to in paragraph (3.3)(c); and

    • (d) despite subsections (3.1) and (3.2), the amount of the rebate under subsection (3) in respect of the construction or substantial renovation of the residential complex or addition is equal to the amount determined as if the first formula in subsection (3) and the descriptions for that formula were read as follows:

      A × B

      where

      A

      is the amount that, in the absence of subsection 191(6), the person would have been entitled to claim under section 193 or 257 in respect of the deemed purchase of the residential complex or addition determined as if the references in section 193 or 257, as the case may be, to "basic tax content" were read as references to "qualifying portion of basic tax content (as defined in subsection 256.2(1))", and

      B

      is the unit's percentage of total floor space.

• (5) Paragraph 256.2(7)(a) of the Act is amended by striking out "and" at the end of subparagraph (ii) and by adding the following after that subparagraph:

  • (ii.1) in the case of a rebate under subsection (3), the amount of which is determined under subsection (3.4), in respect of the construction or substantial renovation of a residential complex or an addition to a multiple unit residential complex, the end of the month that includes the particular time referred to in paragraph (3.3)(c) in respect of the construction or renovation of the residential complex or addition, and

• (6) Subsections (1) to (5) are deemed to have come into force on September 14, 2023.

• (7) If a person is, or would be in the absence of paragraph 256.2(7)(a) of the Act (as amended by subsection (5)), entitled to a rebate under subsection 256.2(3) of the Act (as amended by subsection (2)) in respect of the construction or substantial renovation of a residential complex or an addition to a multiple unit residential complex, if the construction or renovation is substantially completed before the day on which this Act receives royal assent and if the amount of the rebate is determined under subsection 256.2(3.4) of the Act (as enacted by subsection (4)), the rebate may, despite paragraph 256.2(7)(a) of the Act (as amended by subsection (5)), be paid to the person if the person files an application for the rebate before the second anniversary of the day on which this Act receives royal assent.

• (8) If a person is, or would be in the absence of paragraph 256.2(7)(a) of the Act (as amended by subsection (5)), entitled to a rebate under subsection 256.2(3) of the Act (as amended by subsection (2)) in respect of the construction or substantial renovation of a residential complex or an addition to a multiple unit residential complex, if the construction or renovation is substantially completed before the day on which this Act receives royal assent, if the amount of the rebate is determined under subsection 256.2(3.2) of the Act (as amended by subsection (3)) and if the rebate is in respect of a taxable supply described in subsection 256.2(2.1) of the Act, the rebate may, despite paragraph 256.2(7)(a) of the Act (as amended by subsection (5)), be paid to the person if the person files an application for the rebate before the second anniversary of the day on which this Act receives royal assent.

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

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

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

• (2) Subsection (1) is deemed to have come into force on November 5, 2025.

• 163 (1) Paragraph 7(f) of Part II of Schedule V to the Act is repealed.

• (2) Subsection (1) applies to supplies made after June 5, 2025, except that it does not apply to a supply of osteopathic services made after June 5, 2025 but before November 5, 2025 if the supplier did not charge, collect or remit any amount as or on account of tax under Part IX of the Act in respect of the supply.

SOR/2024-157Real Property (GST/HST) Regulations

• 164 (1) The Real Property (GST/HST) Regulations are amended by adding the following after section 3:

  Marginal note:Share of a corporation

  • 3.1 (1) For the purposes of this section and for greater certainty, a share of the capital stock of a corporation includes a share of the capital stock of a cooperative corporation.

  • Marginal note:Total consideration – supply of share

    (2) For the purposes of this section, the total consideration for a supply to a person of a share in the capital stock of a corporation that confers a right in respect of a residential unit situated in a residential complex is the total of all amounts, each of which is the consideration payable for the supply to the person of the share or an interest in the corporation, the residential complex or the residential unit.

  • Marginal note:Excluded equity housing supply

    (3) For the purposes of these Regulations, a taxable supply is an excluded equity housing supply of a residential complex if the taxable supply is a supply by way of sale to a corporation of the residential complex, an interest in the residential complex or an addition to the residential complex and it is the case that, in respect of a residential unit situated in the residential complex,

    • (a) the corporation makes a particular supply of a share of the capital stock of the corporation to a particular person;

    • (b) the share confers on the particular person a right to possess the residential unit or a right to enter into an agreement for the supply by the corporation of the residential unit to the particular person by way of a lease that is, or is similar to, an arrangement commonly referred to as a "proprietary lease"; and

    • (c) if the particular person were to make a subsequent supply of the share to the corporation or another person, the total consideration for the subsequent supply would not be prohibited from exceeding the total consideration for the particular supply under the statute by or under which the corporation was incorporated, under the corporation's charter, articles of association, by-laws or contracts with its shareholders or members or under contracts between its shareholders or members.

• (2) Subsection (1) is deemed to have come into force on September 14, 2023.

• 165 (1) Subsection 4(1) of the Regulations is amended by striking out "and" at the end of paragraph (a), by adding "and" at the end of paragraph (b) and by adding the following after paragraph (b):

  • (c) in any case, the taxable supply is not an excluded equity housing supply of the residential complex.

• (2) Subsection (1) is deemed to have come into force on September 14, 2023.

• 166 (1) The Regulations are amended by adding the following after section 4:

  Marginal note:Prescribed conditions – cooperative housing corporations

  4.1 For the purposes of subsection 256.2(2.1) of the Act, in respect of a taxable supply of property that is a residential complex, an interest in a residential complex or an addition to a multiple unit residential complex, it is a prescribed condition that the taxable supply is not an excluded equity housing supply of the residential complex.

• (2) Subsection (1) is deemed to have come into force on September 14, 2023.

DIVISION 2Underused Housing Tax Measures

2022, c. 5, s. 10Underused Housing Tax Act

Amendments to the Act

167 The Underused Housing Tax Act is amended by adding the following after section 1:

Non-application

Marginal note:Tax not payable

1.1 No tax is payable under subsection 6(3) by a person in respect of a residential property for 2025 and subsequent calendar years.

168 The Act is amended by adding the following before section 7:

Marginal note:Return not required

6.1 Despite sections 7 and 10, a person is not required to file a return for a residential property for 2025 and subsequent calendar years.

Repeals

Marginal note:Repeal

• 169 (1) The Underused Housing Tax Act, section 10 of chapter 5 of the Statutes of Canada, 2022, is repealed.

• (2) Subsection (1) comes into force on January 1, 2035.

Marginal note:Repeal

• 170 (1) The Underused Housing Tax Regulations, section 116 of chapter 19 of the Statutes of Canada, 2022, are repealed.

• (2) Subsection (1) comes into force on January 1, 2035.

DIVISION 3Select Luxury Items Tax Measures

2022, c. 10, s. 135Select Luxury Items Tax Act

• 171 (1) The Select Luxury Items Tax Act is amended by adding the following after section 1:

  Non-application

  Marginal note:Tax not payable – aircraft and vessels

  1.1 Despite anything in this Act, tax under Division 2 of Part 1 in respect of a subject aircraft or subject vessel is not payable if, in the absence of this section, the tax would become payable under that Division after November 4, 2025.

• (2) Subsection (1) is deemed to have come into force on November 5, 2025.

• 172 (1) Subsection 50(6) of the Act is replaced by the following:

  • Marginal note:Registration not required

    (6) Despite subsection (3), a person is not required to be registered for the purposes of this Act as a vendor in respect of

    • (a) subject aircraft or subject vessels after November 4, 2025; or

    • (b) a type of subject item if the person is a prescribed person.

• (2) Subsection (1) is deemed to have come into force on November 5, 2025.

• 173 (1) The Act is amended by adding the following after section 52:

  Marginal note:Registrations cancelled – aircraft and vessels

  52.1 Every registration under this Division in respect of subject aircraft or subject vessels is cancelled on February 1, 2028.

• (2) Subsection (1) is deemed to have come into force on November 5, 2025.

• 174 (1) Section 55 of the Act is amended by adding the following after subsection (3):

  • Marginal note:No requirement to file – aircraft and vessels

    (3.1) Despite subsection (1), a return for a reporting period of a person that begins after December 2025 is not required to be filed if

    • (a) the person is registered under this Division as a vendor in respect of subject aircraft or subject vessels;

    • (b) the person is neither registered nor required to be registered under this Division as a vendor in respect of subject vehicles; and

    • (c) no tax becomes payable by the person during the reporting period.

• (2) Subsection 55(3.1) of the Act, as enacted by subsection (1), is repealed.

• (3) Subsection (1) is deemed to have come into force on November 5, 2025.

• (4) Subsection (2) comes into force on February 1, 2028.

Select Luxury Items Tax Regulations

Making of Regulations

Marginal note:Making

175 The Select Luxury Items Tax Regulations are made as follows:

Select Luxury Items Tax Regulations

Definition

Marginal note:Definition of Act

1 In these Regulations, Act means the Select Luxury Items Tax Act.

PART 1Prescribed Aircraft and Vessels

Marginal note:Exclusion from subject aircraft – agreements before 2022

2 For the purposes of paragraph (g) of the definition subject aircraft in subsection 2(1) of the Act, an aircraft is a prescribed aircraft if ownership of the aircraft is transferred to a purchaser from a vendor by way of sale under an agreement in writing (in this section referred to as the "sale agreement") and

• (a) it is the case that

  • (i) the purchaser entered into the sale agreement before 2022, or

  • (ii) the purchaser

    • (A) entered into the sale agreement after 2021, and

    • (B) entered into another agreement in writing before 2022 with the vendor in respect of the aircraft, under which the purchaser

      • (I) paid a deposit in respect of the aircraft to the vendor before 2022,

      • (II) agrees to enter into the sale agreement, and

      • (III) agrees to forfeit the deposit if the purchaser fails to enter into the sale agreement;

• (b) the sale agreement was entered into between the purchaser and the vendor in the course of the vendor's business of offering aircraft for sale;

• (c) the aircraft is delivered or made available in Canada in relation to the sale agreement;

• (d) possession of the aircraft is transferred to the purchaser under the sale agreement at a particular time;

• (e) the vendor is a registered vendor in respect of subject aircraft at the particular time; and

• (f) the purchaser is neither registered, nor required to be registered, as a vendor in respect of subject aircraft under Division 5 of Part 1 of the Act at, or at any time before, the particular time.

Marginal note:Exclusion from subject vessel – agreements before 2022

3 For the purposes of paragraph (h) of the definition subject vessel in subsection 2(1) of the Act, a vessel is a prescribed vessel if ownership of the vessel is transferred to a purchaser from a vendor by way of sale under an agreement in writing (in this section referred to as the "sale agreement") and

• (a) it is the case that

  • (i) the purchaser entered into the sale agreement before 2022, or

  • (ii) the purchaser

    • (A) entered into the sale agreement after 2021, and

    • (B) entered into another agreement in writing before 2022 with the vendor in respect of the vessel, under which the purchaser

      • (I) paid a deposit in respect of the vessel to the vendor before 2022,

      • (II) agrees to enter into the sale agreement, and

      • (III) agrees to forfeit the deposit if the purchaser fails to enter into the sale agreement;

• (b) the sale agreement was entered into between the purchaser and the vendor in the course of the vendor's business of offering vessels for sale;

• (c) the vessel is delivered or made available in Canada in relation to the sale agreement;

• (d) possession of the vessel is transferred to the purchaser under the sale agreement at a particular time;

• (e) the vendor is a registered vendor in respect of subject vessels at the particular time; and

• (f) the purchaser is neither registered, nor required to be registered, as a vendor in respect of subject vessels under Division 5 of Part 1 of the Act at, or at any time before, the particular time.

Marginal note:Partial ownership

4 For the purposes of sections 2 and 3, a particular person transfers ownership of an aircraft or vessel to another person even if, at the time ownership is transferred to the other person, the particular person retains partial ownership or transfers partial ownership to any third person.

PART 2Sale of Partial Ownership

Marginal note:Prescribed circumstances – taxable amount

• 5 (1) For the purposes of subsection 18(7) of the Act, the circumstances set out in this section are prescribed circumstances.

• Marginal note:Taxable amount – sale of partial ownership

  (2) Subject to subsection (3), for the purposes of section 18 of the Act and for the purposes of determining under section 34 of the Act the amount of tax payable under section 18 of the Act, if a vendor sells only partial ownership of a subject item to a purchaser, the taxable amount of the subject item is the amount determined by the formula

  A + B

  where

  A

  is the greater of the value of the consideration for the sale of the subject item and the retail value of the subject item at the time at which the sale is completed; and

  B

  is the total of all amounts, each of which is the greater of the value of the consideration for, and the fair market value of, an improvement in respect of the subject item that is provided by the vendor, or a person that does not deal at arm's length with the vendor, in connection with the sale of the subject item, but only to the extent that the amount is not included in the determination of A.

• Marginal note:Multiple sales of partial ownership

  (3) For the purposes of section 18 of the Act and for the purposes of determining under section 34 of the Act the amount of tax payable under section 18 of the Act, if a particular sale of only partial ownership of a subject item between a vendor and a purchaser is completed at a particular time and if another sale of only partial ownership of the subject item between the vendor and a purchaser is completed at or after the particular time, the taxable amount of the subject item in respect of the other sale is equal to zero if

  • (a) the taxable amount of the subject item in respect of the particular sale is determined under subsection (2); and

  • (b) before the particular time, the vendor entered into an agreement in writing for the particular sale and an agreement in writing for the other sale.

PART 3Exportation

Marginal note:Prescribed circumstances – aircraft

• 6 (1) For the purposes of section 33 of the Act, the circumstances set out in this section are prescribed circumstances.

• Marginal note:Tax not payable – aircraft

  (2) The tax under section 18 of the Act in respect of a sale of a subject aircraft by a vendor to a purchaser is not payable if

  • (a) the vendor is a registered vendor in respect of subject aircraft at the particular time at which the sale is completed;

  • (b) the purchaser is neither registered, nor required to be registered, as a vendor in respect of subject aircraft under Division 5 of Part 1 of the Act at the particular time;

  • (c) an exemption certificate does not apply in respect of the sale in accordance with section 36 of the Act;

  • (d) the subject aircraft

    • (i) is to be exported as soon after the particular time as is reasonable having regard to the circumstances surrounding the exportation, the sale and, if applicable, the normal business practice of the purchaser and vendor,

    • (ii) is not to be used in Canada at any time before the exportation except to the extent reasonably necessary or incidental to its manufacture, offering for sale, transportation or exportation, and

    • (iii) is not to be registered with the Government of Canada or a province before the exportation except if the registration is done solely for a purpose incidental to its manufacture, offering for sale, transportation or exportation; and

  • (e) the vendor maintains evidence satisfactory to the Minister of the exportation of the subject aircraft.

Marginal note:Prescribed circumstances – aircraft

• 7 (1) For the purposes of subsection 36(3) of the Act, the circumstances set out in this section are prescribed circumstances.

• Marginal note:Exemption certificate – aircraft

  (2) Subject to subsection (3), an exemption certificate applies in respect of a sale of a subject aircraft by a vendor to a purchaser if

  • (a) the vendor is a registered vendor in respect of subject aircraft at the particular time at which the sale is completed;

  • (b) the certificate is made in prescribed form containing prescribed information;

  • (c) the certificate includes

    • (i) the identification number of the subject aircraft,

    • (ii) a declaration by the purchaser that

      • (A) the subject aircraft is to be exported as soon after the particular time as is reasonable having regard to the circumstances surrounding the exportation, the sale and, if applicable, the normal business practice of the purchaser and vendor,

      • (B) the subject aircraft is not to be used in Canada at any time before the exportation except to the extent reasonably necessary or incidental to its manufacture, offering for sale, transportation or exportation,

      • (C) the subject aircraft is not to be registered with the Government of Canada or a province before the exportation except if the registration is done solely for a purpose incidental to its manufacture, offering for sale, transportation or exportation, and

      • (D) the purchaser is neither registered, nor required to be registered, as a vendor in respect of subject aircraft under Division 5 of Part 1 of the Act at the particular time, and

    • (iii) an acknowledgement by the purchaser that the purchaser is assuming liability to pay any amount of tax in respect of the subject aircraft that is or may become payable by the purchaser under the Act;

  • (d) the purchaser provides to the vendor, in a manner satisfactory to the Minister, the certificate in respect of the sale; and

  • (e) the vendor retains the certificate.

• Marginal note:Exemption certificate – multiple purchasers

  (3) If a subject aircraft is sold by a vendor to more than one purchaser, an exemption certificate applies in respect of the sale of the subject aircraft only if, in the absence of this subsection, an exemption certificate would apply in respect of each purchaser in accordance with subsection (2).

PART 4Miscellaneous

Marginal note:Information return – prescribed person

8 For the purposes of subsection 59(1) of the Act, a person is a prescribed person for a reporting period of the person if the person

• (a) is a registered vendor in respect of subject vehicles throughout the reporting period; and

• (b) is not otherwise registered, or required to be registered, under Division 5 of Part 1 of the Act at any time during the reporting period.

Marginal note:General penalty – prescribed provision

9 For the purposes of paragraph 119(a) of the Act, subsection 71(2) of the Act is a prescribed provision.

PART 5Agreements Before 2022

Marginal note:Prescribed circumstances

• 10 (1) For the purposes of section 33 of the Act, the circumstances set out in this section are prescribed circumstances.

• Marginal note:Tax not payable on sale

  (2) Neither the tax under section 18 of the Act nor the tax under section 29 of the Act in respect of a subject item that is sold by a vendor to a purchaser is payable if the purchaser entered into an agreement in writing before 2022 with the vendor for the sale of the subject item in the course of the vendor's business of offering for sale that type of subject item.

• Marginal note:Tax not payable on import

  (3) The tax under section 20 of the Act in respect of a subject item that is imported is not payable if

  • (a) the importer entered into an agreement in writing before 2022 with a vendor for the transfer of ownership of the subject item to the importer by way of sale; and

  • (b) the agreement was entered into in the course of the vendor's business of offering for sale that type of subject item.

• Marginal note:Tax not payable on use

  (4) The tax under section 26 of the Act in respect of a subject item that is used in Canada at a particular time is not payable if

  • (a) a person entered into an agreement in writing before 2022 with a vendor for the transfer of ownership of the subject item to the person by way of sale;

  • (b) the agreement was entered into in the course of the vendor's business of offering for sale that type of subject item; and

  • (c) the person is an owner of the subject item at the particular time.

Coming into Force

Marginal note:September 1, 2022

• 176 (1) Parts 1 and 3 to 5 of the Select Luxury Items Tax Regulations, as made by section 175, are deemed to have come into force on September 1, 2022.

• Marginal note:August 5, 2023

  (2) Part 2 of the Select Luxury Items Tax Regulations, as made by section 175, is deemed to have come into force on August 5, 2023.

• Marginal note:Authority and Statutory Instruments Act

  (3) The Select Luxury Items Tax Regulations, as made by section 175, are deemed

  • (a) to have been made under section 154 of the Select Luxury Items Tax Act;

  • (b) for the purposes of subsection 5(1) of the Statutory Instruments Act, to have been transmitted to the Clerk of the Privy Council for registration; and

  • (c) to have met the publication requirements of subsection 11(1) of the Statutory Instruments Act.

PART 42003, c. 15, s. 67First Nations Goods and Services Tax Act

Amendments to the Act

• 177 (1) The definitions administration agreement, governing body and lands in subsection 2(1) of the First Nations Goods and Services Tax Act are replaced by the following:

  administration agreement

  administration agreement means

  • (a) in Part 1, an agreement referred to in subsection 5(2) and entered into with the authorized body of a first nation;

  • (b) in Part 2, an agreement referred to in section 22 and entered into with a council of the band; and

  • (c) in Part 3, an agreement referred to in subsection 41(2) and entered into with the authorized body of a first nation. (accord d'application)

  governing body

  governing body means

  • (a) in Part 1, the body of a first nation that is identified opposite the name of the first nation listed in Schedule 1; and

  • (b) in Part 3, the body of a first nation that is identified opposite the name of the first nation listed in Schedule 3. (corps dirigeant)

  lands

  lands, of a first nation, means

  • (a) in Part 1, the lands that are described opposite the name of the first nation listed in Schedule 1; and

  • (b) in Part 3, the lands that are described opposite the name of the first nation listed in Schedule 3. (terres)

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

  • Marginal note:Expressions defined in subsection 123(1) of Excise Tax Act

    (2) Unless a contrary intention appears, words and expressions used in Parts 1 and 3 have the same meaning as in subsection 123(1) of the Excise Tax Act.

• (3) Subsection 2(4) of the Act is replaced by the following:

  • Marginal note:Application of deeming rules

    (4) If a provision of Part IX of the Excise Tax Act deems certain circumstances or facts to exist, those circumstances or facts are deemed to exist for the purposes of determining the matters in respect of which a first nation may enact a first nation law, as defined in subsection 11(1), 12(1), 39(1) or 40(1).

178 The heading of Part 1 of the Act is replaced by the following:

First Nations Tax — Goods and Services

• 179 (1) Subsection 3(1.1) of the Act is replaced by the following:

  • Marginal note:Section 89 of Indian Act

    (1.1) A first nation law, as defined in subsection 11(1) or 12(1), or an obligation to pay an amount that arises from the application of section 14, may, despite section 89 of the Indian Act, be administered and enforced by His Majesty in right of Canada, by an agent of the first nation or, if the first nation law is administered by the government of a province under an agreement entered into under section 7 of the Federal-Provincial Fiscal Arrangements Act, by His Majesty in right of the province.

• (2) Subsection 3(3) of the English version of the Act is replaced by the following:

  • Marginal note:Binding on His Majesty

    (3) If a provision of Part IX of the Excise Tax Act is binding on His Majesty in right of Canada or a province, that provision, to the extent that it applies for the purposes of a first nation law, as defined in subsection 11(1) or 12(1), and any provision of the first nation law that corresponds to that provision of that Part are so binding for the purposes of that law.

• 180 (1) Paragraph 4(6)(a) of the Act is replaced by the following:

  • (a) tax became payable by the person in respect of the property under any first nation law, as defined in subsection 11(1), 12(1), 39(1) or 40(1), or section 212 of the Excise Tax Act before the property is brought onto the lands of the first nation; or

• (2) Subparagraph 4(6)(b)(ii) of the Act is replaced by the following:

  • (ii) the lands of every other first nation in respect of which a first nation law, as defined in subsection 11(1), 12(1), 39(1) or 40(1), is in force at the time the property is brought onto the lands of the first nation were each a separate participating province,

• 181 (1) Paragraph 5(2)(e) of the French version of the Act is replaced by the following:

  • e) l'application du texte législatif autochtone par le gouvernement du Canada ou, si ce texte est appliqué par le gouvernement d'une province en vertu d'un accord conclu en application de l'article 7 de la Loi sur les arrangements fiscaux entre le gouvernement fédéral et les provinces, par le gouvernement de la province, et la perception, par le gouvernement du Canada ou par le gouvernement de la province, selon le cas, des sommes imposées en vertu de ce texte;

• (2) Section 5 of the Act is amended by adding the following after subsection (3):

  • Marginal note:Amending agreements — exception

    (3.1) Subsection (3) does not apply to an amendment made to an administration agreement if the agreement authorizes the Minister to make the amendment and the amendment does not fundamentally alter the terms and conditions of the agreement.

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

• (a) in the case of a first nation law, as defined in subsection 11(1),

  • (i) if the governing body that enacted the law is a band, the Minister or a person authorized by the Minister, and

  • (ii) if the governing body that enacted the law is not a band, a person authorized by the governing body; and

183 Subsection 9(3) of the Act is replaced by the following:

• Marginal note:Publication

  (3) The governing body of a band is to provide, on demand, a copy of any law enacted under subsection 4(1) by that governing body and is to publish a copy of every such law on a website maintained by or for the governing body, if one exists, and in a newspaper that has general circulation in the place where the law applies, but no such law is invalid by reason of a failure to publish it.

184 Section 15 of the Act is replaced by the following:

Marginal note:Amendment of Schedule 1

15 The Minister may, by order, amend Schedule 1 by adding, deleting or varying the name of a first nation or of the governing body of a first nation or the description of the lands of a first nation.

185 Section 26 of the Act is replaced by the following:

Marginal note:Publication

26 A council of the band is to provide, on demand, a copy of any band law enacted by that council and is to publish a copy of every such law on a website maintained by or for the council of the band, if one exists, and in a newspaper that has general circulation in the place where the law applies, but no such law is invalid by reason of a failure to publish it.

186 Section 29 of the Act is replaced by the following:

Marginal note:Amendment of Schedule 2

29 The Minister may, by order, amend Schedule 2 by adding, deleting or varying the name of a band, the name of a council of the band, the name, or description, of a band's reserves or the name of a specified province.

PART 3First Nations Tax — Specified Products

Definitions

Marginal note:Definitions

30 The following definitions apply in this Part and in Schedule 3.

alcohol

alcohol means ethyl alcohol. (alcool)

alcoholic beverage

alcoholic beverage means

• (a) beer, within the meaning of section B.02.130 of the Food and Drug Regulations, that contains more than 0.5% alcohol by volume;

• (b) wine, as defined in section 2 of the Excise Act, 2001;

• (c) any beverage that contains more than 0.5% alcohol by volume, that is obtained from the distillation of grains, fruits or other agricultural products or from the distillation of beer or wine; and

• (d) any other beverage that contains a combination of any beverage referred to in paragraphs (a) to (c) that is suitable for human consumption and that contains more than 0.5% alcohol by volume. (boisson alcoolisée)

cannabis product

cannabis product has the same meaning as in section 2 of the Excise Act, 2001. (produit du cannabis)

fuel

fuel means

• (a) diesel fuel, including any fuel oil that is suitable for use in internal combustion engines of the compression-ignition type, other than fuel oil that is intended for use and is actually used as heating oil;

• (b) gasoline type fuels for use in internal combustion engines; and

• (c) propane gas. (carburant)

specified product

specified product means any of the following products:

• (a) alcoholic beverages;

• (b) fuel;

• (c) cannabis products;

• (d) vaping products;

• (e) tobacco products. (produit visé)

tobacco product

tobacco product has the same meaning as in section 2 of the Excise Act, 2001. (produit du tabac)

vaping product

vaping product has the same meaning as in section 2 of the Excise Act, 2001. (produit de vapotage)

Application of Other Acts of Parliament

Marginal note:Section 87 of Indian Act and similar provisions

• 31 (1) The obligation to pay tax or any other amount that is required to be paid under a first nation law, as defined in subsection 39(1) or 40(1), applies despite the application of the exemption under section 87 of the Indian Act and of any other exemption from taxation under any other Act of Parliament that is similar to the exemption under that section.

• Marginal note:Section 89 of Indian Act

  (2) A first nation law, as defined in subsection 39(1) or 40(1), or an obligation to pay an amount that arises from the application of section 43, may, despite section 89 of the Indian Act, be administered and enforced by His Majesty in right of Canada, by an agent of the first nation or, if the first nation law is administered by the government of a province under an agreement entered into under section 7 of the Federal-Provincial Fiscal Arrangements Act, by His Majesty in right of the province.

• Marginal note:Subsection 33(1) applies

  (3) The governing body of a first nation listed in Schedule 3 may enact a law under subsection 33(1) that imposes a tax despite any other Act of Parliament that limits the authority of the first nation to enact a law that imposes a tax.

• Marginal note:Binding on His Majesty

  (4) If a provision of Part IX of the Excise Tax Act is binding on His Majesty in right of Canada or a province, that provision, to the extent that it applies for the purposes of a first nation law, as defined in subsection 39(1) or 40(1), and any provision of the first nation law that corresponds to that provision of that Part are so binding for the purposes of that law.

Administration Agreement and Other Taxes

Marginal note:Tax not payable — Excise Tax Act

32 If an administration agreement in respect of a first nation law, as defined in subsection 39(1) or 40(1), is in effect, no tax (other than tax imposed under subsection 165(2), 212.1(2) or 218.1(1) or Division IV.1 of Part IX of the Excise Tax Act) is payable or deemed to have been paid or collected under Part IX of the Excise Tax Act in respect of a supply of a specified product to the extent that tax is payable or deemed to have been paid or collected, as the case may be, in respect of the supply under the first nation law.

First Nations Specified Products Tax Law

Marginal note:Authority to impose tax

• 33 (1) Subject to this section, the governing body of a first nation that is listed in Schedule 3 and that is a band or has the power to enact laws that has been recognized or granted under any other Act of Parliament or under an agreement that has been given effect by any other Act of Parliament may enact a law that imposes

  • (a) a tax in respect of taxable supplies, made on the lands of the first nation, of specified products listed in Schedule 3 opposite the name of that governing body;

  • (b) a tax in respect of the bringing of specified products listed in Schedule 3 opposite the name of that governing body onto the lands of the first nation from a place in Canada; and

  • (c) a tax in respect of imported taxable supplies, made on the lands of the first nation, of specified products listed in Schedule 3 opposite the name of that governing body.

• Marginal note:Supply made on lands

  (2) For the purposes of subsection (1), a supply, other than an imported taxable supply, is made on the lands of a first nation only if at least one of the following conditions is met:

  • (a) if the lands of the first nation were a participating province, a provision of Part IX of the Excise Tax Act would deem the supply to be made in that participating province if

    • (i) the lands of every other first nation in respect of which a first nation law, as defined in subsection 39(1) or 40(1), is in force at the time the supply is made were each a separate participating province, and

    • (ii) the participating provinces listed in Schedule VIII to the Excise Tax Act were non-participating provinces; or

  • (b) tax under Part IX of the Excise Tax Act is not payable in respect of the supply and such tax would, without section 32, be payable but for the connection of the supply with those lands and the application of the exemption under section 87 of the Indian Act or of any other exemption from taxation under any other Act of Parliament that is similar to the exemption under that section.

• Marginal note:Imported taxable supply made on lands

  (3) For the purposes of paragraph (1)(c), an imported taxable supply is made on the lands of a first nation only if at least one of the following conditions is met:

  • (a) tax would be payable in respect of the imported taxable supply under subsection 218.1(1) of the Excise Tax Act if

    • (i) the lands of the first nation were the particular participating province referred to in that subsection,

    • (ii) the lands of every other first nation in respect of which a first nation law, as defined in subsection 39(1) or 40(1), is in force at the time the supply is made were each a separate participating province,

    • (iii) the participating provinces listed in Schedule VIII to the Excise Tax Act were non-participating provinces, and

    • (iv) the recipient of the supply were not a selected listed financial institution;

  • (b) tax under Part IX of the Excise Tax Act is not payable in respect of the imported taxable supply and such tax would, without section 32, be payable but for the connection of the supply with those lands and the application of the exemption under section 87 of the Indian Act or of any other exemption from taxation under any other Act of Parliament that is similar to the exemption under that section.

• Marginal note:Bringing of specified products onto lands

  (4) Subject to subsection (5), a tax in respect of the bringing of specified products onto the lands of a first nation by a person is to be imposed under a law of the first nation enacted under subsection (1) only if the specified products were last supplied to the person by way of sale at a time when an administration agreement was in effect in respect of that law and tax would have been payable under Part IX of the Excise Tax Act in respect of the supply otherwise than at the rate of zero but for the application of the exemption under section 87 of the Indian Act or of any other exemption from taxation under any other Act of Parliament that is similar to the exemption under that section.

• Marginal note:Exception

  (5) For the purposes of paragraph (1)(b), a tax in respect of the bringing of specified products onto the lands of a first nation by a person is not to be imposed if

  • (a) tax became payable by the person in respect of the specified products under any first nation law, as defined in subsection 11(1), 12(1), 39(1) or 40(1), or section 212 of the Excise Tax Act before the specified products are brought onto the lands of the first nation; or

  • (b) tax would not be payable under subsection 220.05(1) of the Excise Tax Act in respect of the bringing of specified products onto the lands of the first nation if

    • (i) the lands of the first nation were the particular participating province referred to in that subsection,

    • (ii) the lands of every other first nation in respect of which a first nation law, as defined in subsection 11(1), 12(1), 39(1) or 40(1), is in force at the time the specified products are brought onto the lands of the first nation were each a separate participating province,

    • (iii) the participating provinces listed in Schedule VIII to the Excise Tax Act were non-participating provinces, and

    • (iv) paragraphs 220.05(3)(a) and (b) of the Excise Tax Act, section 18 of Part I of Schedule X to that Act, the exemption under section 87 of the Indian Act and any other exemption from taxation under any other Act of Parliament that is similar to the exemption under that section did not apply in respect of the bringing of the specified products onto the lands of the first nation.

• Marginal note:Carriers

  (6) For the purposes of this Part, if a particular person brings specified products onto the lands of a first nation on behalf of another person, the other person, and not the particular person, is deemed to have brought the specified products onto those lands.

• Marginal note:Amount of tax — bringing of specified products onto lands

  (7) For the purposes of subsection (1), the amount of tax that may be imposed under the law of a first nation in respect of the bringing of specified products onto the lands of the first nation by a person is equal to the amount determined by the formula

  A × B

  where

  A

  is the rate of tax set out in subsection 165(1) of the Excise Tax Act; and

  B

  is

  • (a) if the person last acquired the specified products by way of a sale under which the specified products were delivered to the person within 30 days before the day on which they are brought onto the lands of the first nation, the value of the consideration on which tax under Part IX of the Excise Tax Act in respect of the sale would have been calculated but for the application of the exemption under section 87 of the Indian Act or of any other exemption from taxation under any other Act of Parliament that is similar to the exemption under that section, and

  • (b) in any other case, the lesser of

    • (i) the fair market value of the specified products at the time the specified products are brought onto the lands of the first nation, and

    • (ii) the value of the consideration referred to in paragraph (a).

• Marginal note:Reporting and payment of tax

  (8) Tax that is imposed under a law of a first nation enacted under subsection (1) in respect of the bringing of specified products onto the lands of the first nation becomes payable by the person who brings them onto the lands at the time they are brought onto the lands and

  • (a) if the person is a registrant who acquired the specified products for consumption, use or supply primarily in the course of commercial activities of the person, the person is to, on or before the day on or before which the person's return in respect of net tax is required to be filed under the law of the first nation for the reporting period in which the tax became payable,

    • (i) report the tax in that return, and

    • (ii) pay the tax to the Receiver General, or, if the law of the first nation is administered by the government of a province under an agreement entered into under section 7 of the Federal-Provincial Fiscal Arrangements Act, to the appropriate minister for that province; and

  • (b) in any other case, the person is to, on or before the last day of the month following the calendar month in which the tax became payable,

    • (i) file with the Minister of National Revenue or, if the law of the first nation is administered by the government of a province under an agreement entered into under section 7 of the Federal-Provincial Fiscal Arrangements Act, with the appropriate minister for that province a return in respect of the tax, in the manner and in the form authorized by the Minister of National Revenue and containing information specified by that Minister, and

    • (ii) pay the tax to the Receiver General or to the appropriate minister for that province, as the case may be.

• Marginal note:Amount of tax — supply made on lands

  (9) For the purposes of paragraphs (1)(a) and (c), tax may be imposed under the law of a first nation in respect of a supply at the rates at which tax would have otherwise been imposed under subsections 165(1) and (3) of the Excise Tax Act in respect of that supply.

• Marginal note:Administration and enforcement

  (10) A law enacted under subsection (1) by the governing body of a first nation is to be administered and enforced, and the tax imposed under that law is to be collected, in accordance with an administration agreement entered into under subsection 39(2) by the authorized body of the first nation.

Marginal note:Specified products — law under subsection 33(1)

34 A law enacted under subsection 33(1) is to provide which specified products are subject to the law.

Marginal note:Coming into force — law under subsection 33(1)

• 35 (1) A law enacted under subsection 33(1) may come into force only on or after the later of the day on which a copy of the law is received by the Minister and the day on which an administration agreement in respect of that law comes into effect.

• Marginal note:Law deemed not in force

  (2) A law enacted under subsection 33(1) is deemed to not be in force at a particular time unless an administration agreement in respect of that law is in effect at that time.

• Marginal note:Tax not applicable

  (3) A tax imposed under a law enacted under subsection 33(1) by the governing body of a first nation in respect of a specified product does not apply at a particular time unless that specified product is listed at that time in Schedule 3 opposite the name of that governing body.

• Marginal note:Statutory Instruments Act

  (4) A law enacted under subsection 33(1) is not subject to the Statutory Instruments Act.

Marginal note:Proof of law

36 A copy of a first nation law, as defined in subsection 39(1) or 40(1), enacted by the governing body of a first nation is, if it is certified to be a true copy, evidence that the law was duly enacted by the governing body and, in the case of a law enacted under subsection 33(1), was received by the Minister, without proof of the signature or official character of the person certifying it to be a true copy if that person is

• (a) in the case of a first nation law, as defined in subsection 39(1),

  • (i) if the governing body that enacted the law is a band, the Minister or a person authorized by the Minister, and

  • (ii) if the governing body that enacted the law is not a band, by a person authorized by the governing body; and

• (b) in the case of a first nation law, as defined in subsection 40(1), a person authorized by the governing body.

Marginal note:Law of band

• 37 (1) A law enacted under subsection 33(1) by the governing body of a band is valid only if the power of the governing body to enact the law is exercised in conformity with paragraph 2(3)(b) of the Indian Act and no such law is invalid by reason of any defect in form.

• Marginal note:Expenditures

  (2) The power of the governing body of a band to expend moneys paid by the Government of Canada pursuant to an administration agreement in respect of a law enacted under subsection 33(1) by the governing body is validly exercised only if the power is exercised in conformity with paragraph 2(3)(b) of the Indian Act.

• Marginal note:Publication

  (3) The governing body of a band is to provide, on demand, a copy of any law enacted under subsection 33(1) by that governing body and is to publish a copy of every such law on a website maintained by or for the governing body, if one exists, and in a newspaper that has general circulation in the place where the law applies, but no such law is invalid by reason of a failure to publish it.

• Marginal note:Indian moneys

  (4) Moneys raised pursuant to a tax imposed under a law of a first nation enacted under subsection 33(1) are not Indian moneys as defined in subsection 2(1) of the Indian Act.

Marginal note:First nation — provisions of other Acts of Parliament

• 38 (1) Subject to subsection (2), if any other Act of Parliament or an agreement that has been given effect by any other Act of Parliament recognizes or grants a power of a first nation, other than a band, to enact a law and that Act or agreement contains provisions relating to such matters as the expenditure of moneys raised under a law of the first nation relating to taxation, the style, form or registration of such a law or the procedure for enacting, publishing and providing copies of such a law, the provisions of that Act or agreement apply, with any necessary modifications, for the purposes of a law of the first nation that is enacted under subsection 33(1).

• Marginal note:Exception

  (2) Subsection (1) does not apply to the extent that provisions relating to the matters referred to in that subsection are contained in a law of a first nation that is enacted under a power recognized or granted under any other Act of Parliament or under a power recognized or granted under an agreement that has been given effect by any other Act of Parliament.

Definition of first nation law

• 39 (1) In this section, first nation law means a law enacted under subsection 33(1).

• Marginal note:Administration agreement

  (2) The authorized body of a first nation may enter into an administration agreement in respect of a first nation law enacted by the governing body of the first nation.

• Marginal note:Rules if agreement

  (3) If the authorized body of a first nation and the Minister have entered into an administration agreement in respect of a first nation law,

  • (a) every provision of Part IX of the Excise Tax Act (other than a provision that creates a criminal offence) applies, with any necessary modifications, for the purposes of the first nation law as if tax referred to in each of paragraphs 33(1)(a) and (c) imposed under the first nation law were imposed under subsection 165(1) and section 218 of the Excise Tax Act, respectively, and, subject to subsection 33(8), as if tax referred to in paragraph 33(1)(b) imposed under the first nation law were imposed under subsection 220.05(1) of the Excise Tax Act in respect of the bringing of specified products into a participating province, but the first nation law is not to be construed as imposing a tax except as provided in section 33;

  • (b) the first nation law applies as if tax imposed under Part IX of the Excise Tax Act were imposed under the first nation law and as if the provisions of that Part (other than a provision that creates a criminal offence) relating to that tax were included in the first nation law, but the first nation law is not to be construed as imposing a tax except as provided in section 33;

  • (c) Part IX of the Excise Tax Act applies, other than for the purposes of paragraph (a), as if tax imposed under the first nation law were imposed under that Part and as if the provisions of the first nation law relating to that tax were included in that Part, but that Part is not to be construed as imposing a tax except as provided in that Part;

  • (d) all Acts of Parliament, other than this Act and Part IX of the Excise Tax Act, apply as if tax referred to in each of paragraphs 33(1)(a) and (c) imposed under the first nation law were imposed under subsection 165(1) and section 218 of the Excise Tax Act, respectively, and, subject to subsection 33(8), as if tax referred to in paragraph 33(1)(b) imposed under the first nation law were imposed under subsection 220.05(1) of the Excise Tax Act in respect of the bringing of specified products into a participating province; and

  • (e) for greater certainty,

    • (i) a person who does anything to satisfy a requirement of the first nation law that would satisfy a corresponding requirement of Part IX of the Excise Tax Act if the tax imposed under the first nation law were imposed under that Part is deemed to have satisfied the requirement of the first nation law,

    • (ii) a person who does anything to exercise an authority, right or privilege under the first nation law that would be a valid exercise of a corresponding authority, right or privilege under Part IX of the Excise Tax Act if the tax imposed under the first nation law were imposed under that Part is deemed to have validly exercised the authority, right or privilege under the first nation law,

    • (iii) a person who does anything to satisfy a requirement or exercise an authority, right or privilege under Part IX of the Excise Tax Act is deemed to have done that thing for the purposes of both that Part and the first nation law,

    • (iv) a person who does anything to satisfy a requirement or exercise an authority, right or privilege under the first nation law is deemed to have done that thing for the purposes of both that law and Part IX of the Excise Tax Act,

    • (v) a person who is a registrant for the purposes of Part IX of the Excise Tax Act is a registrant for the purposes of both that Part and the first nation law,

    • (vi) a person who is a registrant for the purposes of the first nation law is a registrant for the purposes of both that law and Part IX of the Excise Tax Act,

    • (vii) if a proceeding may be taken under any other Act of Parliament in respect of the tax imposed under Part IX of the Excise Tax Act, that proceeding may be taken in respect of the tax imposed under the first nation law, and

    • (viii) nothing in this Part is to be construed as conferring on a governing body the power to make an enactment in respect of criminal law.

First Nation Law Enacted Under Separate Power

Definition of first nation law

• 40 (1) In this section, first nation law means a law enacted by the governing body of a first nation listed in Schedule 3 under a power recognized or granted under any other Act of Parliament or an agreement that has been given effect by any other Act of Parliament, if that law and its application are consistent with subsections 33(1) to (9), section 34, subsection 35(3), paragraphs 39(3)(a) and (b) and subparagraphs 39(3)(e)(i) to (iii), (v) and (viii).

• Marginal note:Rules if agreement

  (2) If the authorized body of a first nation and the Minister have entered into an administration agreement in respect of a first nation law,

  • (a) Part IX of the Excise Tax Act applies as if tax imposed under the first nation law were imposed under that Part and as if the provisions of the first nation law relating to that tax were included in that Part, but that Part is not to be construed as imposing a tax except as provided in that Part;

  • (b) all Acts of Parliament, other than this Act and Part IX of the Excise Tax Act, apply as if tax referred to in each of paragraphs 33(1)(a) and (c) imposed under the first nation law were imposed under subsection 165(1) and section 218 of the Excise Tax Act, respectively, and, subject to subsection 33(8), as if tax referred to in paragraph 33(1)(b) imposed under the first nation law were imposed under subsection 220.05(1) of the Excise Tax Act in respect of the bringing of specified products into a participating province; and

  • (c) for greater certainty,

    • (i) a person who does anything to satisfy a requirement or exercise an authority, right or privilege under the first nation law is deemed to have done that thing for the purposes of both that law and Part IX of the Excise Tax Act,

    • (ii) a person who is a registrant for the purposes of the first nation law is a registrant for the purposes of both that law and Part IX of the Excise Tax Act, and

    • (iii) if a proceeding may be taken under any other Act of Parliament in respect of the tax imposed under Part IX of the Excise Tax Act, that proceeding may be taken in respect of the tax imposed under the first nation law.

• Marginal note:Cessation of agreement

  (3) If an administration agreement in respect of a first nation law ceases to have effect at any time, this Part applies after that time in respect of the first nation law as if the first nation law had been repealed at that time.

Tax Attributable to a First Nation

Marginal note:Tax attributable to first nation

• 41 (1) An administration agreement in respect of a first nation law, as defined in subsection 39(1) or 40(1), of a particular first nation is to provide for payments by the Government of Canada to the particular first nation in respect of that law based on an estimate for each calendar year of the amount (in this section referred to as "tax attributable to the first nation") by which

  • (a) the total of all amounts each of which is an amount of tax that, while that first nation law was in force, became payable in the year under a first nation law, as defined in subsection 39(1) or 40(1), or Part IX of the Excise Tax Act (other than subsections 165(2), 212.1(2) and 218.1(1) and Division IV.1) and that is attributable to a specified product that is for consumption or use on the lands of the particular first nation,

  exceeds

  • (b) the total of all amounts each of which is included in the total determined under paragraph (a) and

    • (i) is included in determining an input tax credit or in determining a deduction that may be claimed in determining the net tax of a person,

    • (ii) can reasonably be regarded as an amount that a person is or was entitled to recover by way of a rebate or refund or otherwise under a first nation law, as defined in subsection 39(1) or 40(1), or under any Act of Parliament, or

    • (iii) is an amount of tax in respect of a supply to a person who is, under any Act of Parliament or any other law, exempt from paying the tax.

• Marginal note:Administration agreement

  (2) The Minister, with the approval of the Governor in Council, may on behalf of the Government of Canada enter into an agreement in respect of a first nation law, as defined in subsection 39(1) or 40(1), of a first nation with the authorized body of the first nation and, among other things, the agreement is to provide

  • (a) the method for estimating, in accordance with the formulae, rules, conditions and data sources specified in the agreement, the tax attributable to the first nation;

  • (b) for the sharing, if any, between the first nation and the Government of Canada of the tax attributable to the first nation;

  • (c) for the retention by the Government of Canada, as its property, of

    • (i) the portion, if any, of the total tax imposed by the first nation under the first nation law that is not tax attributable to the first nation, and

    • (ii) the Government of Canada's share, if any, under paragraph (b) of the tax attributable to the first nation;

  • (d) for the payments, and for the eligibility for payments, by the Government of Canada to the first nation in respect of the tax attributable to the first nation out of the Consolidated Revenue Fund to which the first nation is entitled under the agreement, the time when and the manner in which the payments will be made, and the remittance by the first nation to the Government of Canada of any overpayments or advances by the Government of Canada or the right of the Government of Canada to set off any overpayments or advances against amounts payable by the Government of Canada to the first nation under the agreement;

  • (e) for the administration and enforcement of the first nation law by the Government of Canada or, if the first nation law is administered by the government of a province under an agreement entered into under section 7 of the Federal-Provincial Fiscal Arrangements Act, by the government of the province and for the collection, by the Government of Canada or the government of the province, as the case may be, of amounts imposed under that law;

  • (f) for the provision by the Government of Canada or, if the first nation law is administered by the government of a province under an agreement entered into under section 7 of the Federal-Provincial Fiscal Arrangements Act, by the government of the province to the first nation of information acquired in the administration and enforcement of the first nation law or, subject to section 295 of the Excise Tax Act, of Part IX of that Act, and for the provision by the first nation to the Government of Canada or the government of the province, as the case may be, of information acquired in the administration of the first nation law;

  • (g) for the accounting of tax attributable to the first nation in accordance with the agreement;

  • (h) for the payment by the Government of Canada and its agents and subservient bodies of amounts imposed under the first nation law or any other first nation law, as defined in subsection 39(1) or 40(1), and for the payment by the first nation and its agents and subservient bodies of amounts imposed under that law, any other first nation law, as defined in subsection 39(1) or 40(1), or Part IX of the Excise Tax Act;

  • (i) for the accounting for the payments referred to in paragraph (h);

  • (j) for the compliance by the Government of Canada and its agents and subservient bodies with the first nation law and any other first nation law, as defined in subsection 39(1) or 40(1), and for the compliance by the first nation and its agents and subservient bodies with that law, any other first nation law, as defined in subsection 39(1) or 40(1), and Part IX of the Excise Tax Act; and

  • (k) for other matters that relate to, and that are considered advisable for the purposes of implementing or administering, the first nation law.

• Marginal note:Amending agreements

  (3) The Minister, with the approval of the Governor in Council, may on behalf of the Government of Canada enter into an agreement with the authorized body of a first nation amending or varying an administration agreement with the first nation or an agreement under this subsection.

• Marginal note:Amending agreements — exception

  (4) Subsection (3) does not apply to an amendment made to an administration agreement if the agreement authorizes the Minister to make the amendment and the amendment does not fundamentally alter the terms and conditions of the agreement.

• Marginal note:Payments to first nation

  (5) If the Minister, on behalf of the Government of Canada, has entered into an administration agreement with the authorized body of a first nation, the Minister may pay to the first nation out of the Consolidated Revenue Fund

  • (a) amounts determined in accordance with the agreement as provided, and at such times as are specified, in the agreement; and

  • (b) in accordance with the agreement, advances in respect of the amounts referred to in paragraph (a).

• Marginal note:Payments to other persons

  (6) Subject to subsection (7), if an administration agreement has been entered into in respect of a first nation law, as defined in subsection 39(1) or 40(1), payments may be made to a person out of the Consolidated Revenue Fund on account of any amount that is payable to the person under that law in accordance with the agreement unless the first nation law is administered by the government of a province under an agreement entered into under section 7 of the Federal-Provincial Fiscal Arrangements Act.

• Marginal note:Recoverable advance out of Consolidated Revenue Fund

  (7) If no amount is held on behalf of a first nation from which payment under subsection (6) may be made in accordance with an administration agreement, or the amount of the payment exceeds the amount so held, payment under subsection (6) may be made as a recoverable advance out of the Consolidated Revenue Fund if the repayment of the amount or excess by the first nation is provided for in the agreement.

Marginal note:Statutory authority to make payments

42 Despite any other Act of Parliament, the payments made under an administration agreement under the authority of subsection 41(5), (6) or (7) may be made without any other or further appropriation or authority.

Offences

Marginal note:Offences

43 When an administration agreement in respect of a first nation law, as defined in subsection 39(1) or 40(1), is in effect and a person commits an act or omission in respect of that law that would be an offence under a provision of Part IX of the Excise Tax Act or regulations made under that Part if the act or omission were committed in relation to that Part or those regulations,

• (a) subject to paragraph (b), the person is guilty of an offence punishable on summary conviction;

• (b) the Attorney General of Canada may elect to prosecute the person by indictment if an offence under that provision may be prosecuted by indictment; and

• (c) the person is liable on conviction to the punishment provided for in that provision.

General

Marginal note:Amendment of Schedule 3

44 The Minister may, by order, amend Schedule 3 by adding, deleting or varying the name of a first nation or of the governing body of a first nation, the description of the lands of a first nation or the specified products listed opposite the name of a first nation.

Marginal note:Information reports

• 45 (1) If an administration agreement entered into by the authorized body of a first nation is in effect in respect of a first nation law, as defined in subsection 39(1) or 40(1), the Minister of National Revenue or, if the first nation law is administered by the government of a province under an agreement entered into under section 7 of the Federal-Provincial Fiscal Arrangements Act, the appropriate minister for that province may, for the purposes of the administration agreement, require any person having a place of business, or maintaining assets of a business, on the lands of the first nation to make a report respecting supplies of specified products relating to that business made by the person or specified products acquired or imported for consumption, use or supply in connection with those lands and that business.

• Marginal note:Form and manner of filing

  (2) A report under subsection (1) is to be made in the manner and form authorized by the Minister of National Revenue and at the time and containing information specified by that Minister. The report is to be filed with the Minister of National Revenue or, if a first nation law is administered by the government of a province under an agreement referred to in that subsection, with the appropriate minister for that province.

187 The Act is amended by adding, after Schedule 2, the Schedule 3 set out in Schedule 1 to this Act.

188 The French version of the Act is amended by replacing "administré" with "appliqué" in the following provisions:

• (a) subparagraphs 4(9)(a)(ii) and (b)(i);

• (b) paragraph 5(2)(f) and subsection 5(5); and

• (c) section 16.

Consequential Amendments

R.S., c. E-15Excise Tax Act

189 Subparagraph 295(5)(d)(iv.2) of the Excise Tax Act is replaced by the following:

• (iv.2) to a person authorized by the governing body of a first nation listed in a schedule to the First Nations Goods and Services Tax Act solely for the purposes of the formulation, evaluation or initial implementation of fiscal policy relating to a tax referred to in that Act,

R.S., c. F-8; 1995, c. 17, s. 45(1)Federal-Provincial Fiscal Arrangements Act

190 The definition First Nation law in subsection 2(1) of the Federal-Provincial Fiscal Arrangements Act is replaced by the following:

First Nation law

First Nation law has the meaning assigned by subsection 11(1), 12(1), 39(1) or 40(1) of the First Nations Goods and Services Tax Act; (texte législatif autochtone)

PART 5Various Measures

DIVISION 1High-Speed Rail Network Act

Enactment of Act

Marginal note:Enactment

191 The High-Speed Rail Network Act is enacted as follows:

An Act respecting the high-speed rail network

Alternative Title

Marginal note:Alternative title

1 This Act may be cited as the High-Speed Rail Network Act.

Interpretation

Marginal note:Definitions

2 The following definitions apply in this Act.

appropriate Minister

appropriate Minister has the meaning assigned by paragraph (a) of the definition Minister in subsection 2(1) of the Expropriation Act. (ministre compétent)

Corporation

Corporation means the subsidiary of VIA Rail Canada Inc. incorporated under the Canada Business Corporations Act on November 29, 2022 with the corporate name VIA HFR - VIA TGF Inc. or its assign or successor. (Société)

Crown

Crown has the same meaning as in subsection 2(1) of the Expropriation Act. (Couronne)

expropriated

expropriated has the same meaning as in subsection 2(1) of the Expropriation Act. (exproprié)

high-speed rail network

high-speed rail network means the rail network that allows for the carrying of passengers at high speed between Quebec and Ontario. (réseau ferroviaire à grande vitesse)

Indigenous knowledge

Indigenous knowledge means the Indigenous knowledge of the Indigenous peoples of Canada. (connaissances autochtones)

Indigenous peoples of Canada

Indigenous peoples of Canada has the meaning assigned by the definition aboriginal peoples of Canada in subsection 35(2) of the Constitution Act, 1982.  (peuples autochtones du Canada)

interest or right required for the high-speed rail network

interest or right required for the high-speed rail network means an interest in land or immovable real right that the Corporation requires for the purpose of a railway that is to be part of the high-speed rail network. (droit ou intérêt requis pour le réseau ferroviaire à grande vitesse)

land

land has the same meaning as in subsection 2(1) of the Expropriation Act. (bien-fonds)

Minister

Minister means the Minister of Transport. (ministre)

occupant

occupant means

• (a) a person who occupies land and has an immovable real right in the land other than ownership;

• (b) a person, other than a lessee, who occupies land and has a lesser interest than an interest in fee simple in the land; or

• (c) a person, other than a lessee, who occupies land with the permission of the owner of the land. (occupant)

owner

owner means, in respect of land in Canada elsewhere than in Quebec, an owner in fee simple. (propriétaire)

railway

railway has the same meaning as in section 87 of the Canada Transportation Act. (chemin de fer)

registered

registered has the meaning assigned by the definition register in subsection 2(1) of the Expropriation Act. (enregistrer)

registrar

registrar has the same meaning as in subsection 2(1) of the Expropriation Act. (registrateur)

Marginal note:Interpretation

3 For the purposes of the definition interest or right required for the high-speed rail network in section 2, of paragraph 7(b) and of sections 17 to 23,

• (a) an interest in land relates to any land in Canada elsewhere than in Quebec;

• (b) an immovable real right relates to any land in Quebec and includes the right of a lessee of the land;

• (c) an owner of an interest is a person who has a right, estate or interest in any land in Canada elsewhere than in Quebec; and

• (d) a holder of a right is a person who has a right in any land in Quebec, including a lessee of the land.

Declaration

Marginal note:General advantage of Canada

4 The railways constructed to be part of the high-speed rail network are declared to be works for the general advantage of Canada.

Approval

Marginal note:Construction deemed approved

• 5 (1) The construction of the railway lines that are to be part of the high-speed rail network is deemed to have been approved by the Canadian Transportation Agency under section 98 of the Canada Transportation Act.

• Marginal note:Agency not authorized to review, rescind, etc.

  (2) Despite section 32 of the Canada Transportation Act, the Canadian Transportation Agency is not authorized to review, rescind or vary the approval referred to in subsection (1).

Impact Assessments

Marginal note:Designated project

• 6 (1) The construction, operation, decommissioning and abandonment of the high-speed rail network do not constitute a designated project, as defined in section 2 of the Impact Assessment Act, for the purposes of that Act.

• Marginal note:Segments

  (2) However, the construction, operation, decommissioning and abandonment of each segment of the high-speed rail network, including any incidental physical activity, constitute a designated project, as defined in section 2 of the Impact Assessment Act, whether or not the segment requires a total of 50 km or more of new right of way, as defined in subsection 1(1) of the Physical Activities Regulations.

Marginal note:Non-application

7 Section 8 of the Impact Assessment Act does not apply to the exercise of the following powers or the performance of the following duties and functions for the purpose of carrying out a designated project referred to in subsection 6(2):

• (a) the powers, duties and functions referred to in sections 12 and 14 to 16;

• (b) the powers, duties and functions conferred under an Act of Parliament that are related to the expropriation of an interest in land or immovable real right; and

• (c) the powers, duties and functions conferred under an Act of Parliament, other than this Act, that are related to the acquisition of land other than by expropriation.

Right of First Refusal

Marginal note:Notice of right of first refusal

• 8 (1) If the Corporation is of the opinion that it may require land for the purpose of a railway that is to be part of the high-speed rail network, it may cause a notice of right of first refusal to be registered in the office of the registrar for the county, district or registration division in which the land is situated.

• Marginal note:Content

  (2) The notice of right of first refusal must be signed by the Corporation and include

  • (a) a description of the land that is subject to the notice;

  • (b) a statement that the Corporation may require the land for the purpose of the high-speed rail network;

  • (c) a statement of the owner of the land's and Corporation's obligations under section 9;

  • (d) a statement of the rule set out in section 10; and

  • (e) a recommendation that the owner of the land include in any agreement of purchase and sale entered into with a third party with respect to the land a statement that the land is subject to a notice of right of first refusal registered under subsection (1).

• Marginal note:Copy of notice sent

  (3) The Corporation must, as soon as feasible after the notice is registered, cause a copy of the notice to be sent by registered mail or by email to the owner of the land that is subject to the notice.

• Marginal note:Term

  (4) The notice takes effect on the day on which it is registered and ceases to have effect on the earliest of

  • (a) the day on which the land that is subject to the notice, or a part of that land, is acquired, other than by expropriation, by the Corporation,

  • (b) the day on which the land is expropriated,

  • (c) the day on which a notice of abandonment of the intention to expropriate the land is registered under paragraph 12(1)(b) of the Expropriation Act,

  • (d) the date of the notice sent under paragraph 9(3)(b), or

  • (e) the eighth anniversary of the day on which the notice of right of first refusal is registered.

Marginal note:Effect of notice

• 9 (1) If the owner of land that is subject to a notice of right of first refusal registered under subsection 8(1) accepts an offer from a third party to purchase the land, the owner must, as soon as feasible after accepting the offer, provide the Corporation with a copy of the signed agreement of purchase and sale in order that the Corporation may exercise its right of first refusal to purchase the land at the price specified in the agreement.

• Marginal note:Confidentiality

  (2) The Corporation must treat the copy of the signed agreement of purchase and sale as confidential.

• Marginal note:Corporation's response

  (3) The Corporation must, within 60 days after the day on which it receives the copy of the signed agreement of purchase and sale,

  • (a) send, by registered mail or by email, the owner a notice that it is exercising its right of first refusal; or

  • (b) cause the notice of right of first refusal to be deleted from the office in which it was registered and send, by registered mail or by email, the owner a notice that it is not exercising its right of first refusal and that it has taken the steps necessary to have the notice of right of first refusal deleted.

• Marginal note:Compensation

  (4) If the Corporation exercises its right of first refusal, it must pay to the third party an amount equal to any expenses that were, in the opinion of the Corporation, reasonably incurred by the third party in the course of negotiating the agreement of purchase and sale that it entered into with the owner.

Marginal note:Void or null

• 10 (1) Any sale, to a third party other than the Corporation, of land that is subject to a notice of right of first refusal registered under subsection 8(1) is void or, in Quebec, null.

• Marginal note:Non-application

  (2) Subsection (1) does not apply to the sale of land under an agreement of purchase and sale entered into before the notice is registered.

Marginal note:Deleting notice — ceases to have effect

11 If the notice of right of first refusal ceases to have effect on the eighth anniversary of the day on which it is registered, the Corporation must, as soon as feasible after the notice ceases to have effect, cause the notice to be deleted from the office in which it was registered and send, by registered mail or by email, the owner of the land a notice that it has taken the steps necessary to cause the notice to be deleted.

Prohibition on Work

Marginal note:Notice of prohibition on work

• 12 (1) If the Corporation is of the opinion that land that it may require for the purpose of a railway that is to be part of the high-speed rail network should be subject to a notice of prohibition on work, it may request that the Minister have such a notice registered in the office of the registrar for the county, district or registration division in which the land is situated.

• Marginal note:Minister

  (2) If, after considering, among other things, the Corporation's request, the Minister is of the opinion that the land should be subject to a notice of prohibition on work, the Minister must request that the appropriate Minister cause such a notice to be registered in that office.

• Marginal note:Appropriate Minister

  (3) On receiving the request from the Minister, the appropriate Minister must cause a notice of prohibition on work to be registered in that office.

• Marginal note:Content of notice

  (4) A notice of prohibition on work must be signed by the appropriate Minister and include

  • (a) a description of the land that is subject to the notice;

  • (b) a statement that the Corporation may require the land for the purpose of the high-speed rail network;

  • (c) a statement of the owner of the land's obligation under subsection (6);

  • (d) a statement of the prohibition set out in section 13; and

  • (e) a statement of the rule set out in section 23.

• Marginal note:Copy of notice sent

  (5) The appropriate Minister must, as soon as feasible after a notice of prohibition on work is registered, cause a copy of the notice to be sent by registered mail or by email to the owner of the land that is subject to the notice.

• Marginal note:Owner's obligation

  (6) The owner of the land must, as soon as feasible after receiving a copy of the notice, provide the appropriate Minister with the name and contact information of any lessee or occupant of the land. If there is a new lessee or occupant before the notice ceases to have effect, the owner must, as soon as possible, provide the appropriate Minister with their name and contact information.

• Marginal note:Copy of notice sent — lessee and occupant

  (7) On receiving the name and contact information of any lessee or occupant, the appropriate Minister must cause a copy of the notice to be sent by registered mail or by email to the lessee or occupant.

• Marginal note:Term

  (8) A notice of prohibition on work takes effect on the day on which it is registered and ceases to have effect on the earliest of

  • (a) the day on which the land that is subject to the notice, or a part of that land, is acquired, other than by expropriation, by the Corporation,

  • (b) the day on which the land is expropriated,

  • (c) the day on which a notice of abandonment of the intention to expropriate the land is registered under paragraph 12(1)(b) of the Expropriation Act,

  • (d) the date of the notice sent under subsection 15(1), or

  • (e) the fourth anniversary of the day on which the notice of prohibition on work is registered.

Marginal note:Prohibition

13 An owner of land that is subject to a notice of prohibition on work and any lessee or occupant of that land must not undertake or cause to be undertaken any work to the land, other than work to prevent the normal deterioration of the land or to maintain its normal functional state. However, work begun before the notice is registered may be completed.

Marginal note:Entry for verification or appraisal

• 14 (1) If a notice of prohibition on work is registered, any person authorized in writing by the appropriate Minister may, at any reasonable time on notice to any person in or on the land that is subject to the notice, enter into or on that land for the purpose of verifying compliance with section 13 or for the purpose of making an appraisal of the value of the land.

• Marginal note:Offence

  (2) Everyone who prevents any person from or obstructs or hinders any person in doing anything that they are authorized by subsection (1) to do is guilty of an offence punishable on summary conviction.

• Marginal note:Due diligence defence

  (3) A person is not to be found guilty of an offence under subsection (2) if they establish that they exercised due diligence to prevent the commission of the offence.

Marginal note:Deleting notice

• 15 (1) If the Minister notifies the appropriate Minister that the Corporation is of the opinion that land that is subject to a notice of prohibition on work should no longer be subject to the notice, the appropriate Minister must, as soon as feasible, cause the notice to be deleted from the office in which it was registered and send, by registered mail or by email, the owner of the land and any lessee or occupant who received a copy of the notice under subsection 12(7) a notice that the appropriate Minister has taken the steps necessary to cause the notice of prohibition on work to be deleted.

• Marginal note:Deleting notice — ceases to have effect

  (2) If the notice of prohibition on work ceases to have effect on the fourth anniversary of the day on which it is registered, the appropriate Minister must, as soon as feasible after the notice ceases to have effect, cause the notice to be deleted from the office in which it was registered and send, by registered mail or by email, the owner and any lessee or occupant who received a copy of the notice under subsection 12(7) a notice that the appropriate Minister has taken the steps necessary to cause the notice of prohibition on work to be deleted.

Marginal note:Compensation

• 16 (1) If the notice of prohibition on work ceases to have effect on the fourth anniversary of the day on which it is registered or on the date of the notice sent under subsection 15(1), the Crown must pay to any person who was — at the time the notice of prohibition on work is registered — an owner of the land that is subject to the notice or a lessee or occupant of that land the amount of any actual loss sustained by them during the period that begins on the day on which the notice is registered and ends on the day before the day on which it ceases to have effect, as a result of the notice having been registered, if the owner, lessee or occupant

  • (a) submits to the appropriate Minister a claim, in writing, for compensation within one year from the date on which the notice ceases to have effect; and

  • (b) provides that Minister with information in support of their claim.

• Marginal note:Costs

  (2) If the Crown pays compensation to an owner, lessee or occupant under subsection (1), it must pay the owner, lessee or occupant an amount equal to the legal, appraisal and other costs that, in the opinion of the Crown, they reasonably incurred in asserting their claim for that compensation.

Expropriation

Marginal note:Deemed railway company

• 17 (1) The Corporation is deemed to be a railway company, as defined in section 87 of the Canada Transportation Act, for the purposes of section 4.1 of the Expropriation Act.

• Marginal note:Previous attempt to purchase not required

  (2) Despite subsection 4.1(1) of the Expropriation Act, the Corporation is not required to have attempted to purchase an interest or right required for the high-speed rail network before it requests to have the interest or right expropriated.

• Marginal note:Expropriation

  (3) Despite subsections 4.1(2) and (3) of the Expropriation Act, if the Minister is of the opinion that an interest in land or an immovable real right is required by the Corporation for the purpose of a railway that is to be part of the high-speed rail network, the appropriate Minister

  • (a) is deemed to be of the opinion that the interest or right is required by the Crown for a public work or other public purpose; and

  • (b) must have the interest in land or immovable real right expropriated.

Marginal note:Non-application

• 18 (1) Sections 8 and 11 of the Expropriation Act do not apply in respect of a notice of intention to expropriate an interest or right required for the high-speed rail network.

• Marginal note:Non-application — objections

  (2) Sections 9 and 10 of the Expropriation Act do not apply in respect of objections to an intended expropriation of an interest or right required for the high-speed rail network.

Marginal note:Appropriate Minister's obligations

• 19 (1) If a notice of intention to expropriate an interest or right required for the high-speed rail network is registered under subsection 5(2) of the Expropriation Act, the appropriate Minister must

  • (a) cause a copy of the notice of intention to expropriate to be sent by registered mail or by email to each of the persons whose names are set out in the report of the Attorney General of Canada referred to in subsection 5(2) of that Act, as soon as feasible after the registration of that notice;

  • (b) cause the notice of intention to expropriate, or an abbreviated form of that notice, to be published in the Canada Gazette, immediately after causing a copy of the notice of intention to expropriate to be sent under paragraph (a); and

  • (c) immediately after the notice is published under paragraph (b), cause a copy of it to be published in at least one issue of a publication, if any, in general circulation within the area in which the land is situated or otherwise make it available to the public.

• Marginal note:Abbreviated notice of intention

  (2) The abbreviated form of the notice of intention to expropriate must include

  • (a) a statement that a notice of intention to expropriate was registered;

  • (b) the date on which the notice of intention to expropriate was registered and its registration number;

  • (c) the name of the city, town, municipality or other organized district in which the land that is subject to the notice of intention to expropriate is situated; and

  • (d) any additional information that the appropriate Minister considers appropriate.

• Marginal note:Statement of right to object

  (3) Both forms of a notice of intention to expropriate must also include a statement of a person's right to object under section 21 and the manner in which the person may exercise that right.

Marginal note:Omission, misstatement or erroneous description

20 If a notice of intention to expropriate an interest or right required for the high-speed rail network, or an abbreviated form of that notice, published in the Canada Gazette contains an omission, misstatement or erroneous description, the appropriate Minister may cause a corrected notice to be published in the Canada Gazette, in which case the corrected notice is deemed to have been published on the day on which the original notice was published.

Marginal note:Objections

21 Any person who objects to an intended expropriation of an interest or right required for the high-speed rail network may, within 30 days after the day on which the notice, or an abbreviated form of that notice, is published in the Canada Gazette, serve on the appropriate Minister an objection in writing stating their name and address and indicating the nature of their objection, the grounds on which it is based and the nature of their interest in the matter of the intended expropriation.

Marginal note:Confirmation or abandonment of intention

• 22 (1) If the appropriate Minister caused a notice of intention to expropriate an interest or right required for the high-speed rail network, or an abbreviated form of that notice, to be published in the Canada Gazette, that Minister may, after the expiry of the period referred to in section 21, confirm the intention under section 14 of the Expropriation Act or abandon the intention.

• Marginal note:Reasons

  (2) If the appropriate Minister confirms the intention, they must, on the written request of a person who served an objection on them, provide the person with a statement of the appropriate Minister's reasons for not giving effect to the objection.

• Marginal note:Deemed abandonment of intention

  (3) If the appropriate Minister has not confirmed the intention within two years from the day on which the notice, or an abbreviated form of that notice, is published in the Canada Gazette, the appropriate Minister is deemed to have abandoned the intention.

• Marginal note:More limited interest or right

  (4) If, at the time of confirming the intention, the appropriate Minister is of the opinion that a more limited interest or right is required by the Crown for a railway that is to be a part of the high-speed rail network, that Minister may confirm the intention to expropriate the more limited interest or right under section 14 of the Expropriation Act, in which case that Minister is deemed to have abandoned the intention to expropriate the remainder of the interest or right.

• Marginal note:Notice of right of first refusal

  (5) If a notice of abandonment of the intention to expropriate land is registered under paragraph 12(1)(b) of the Expropriation Act and that land is subject to a notice of right of first refusal registered under subsection 8(1), the Corporation must cause the notice of right of first refusal to be deleted from the office in which it was registered and send, by registered mail or by email, to the owner of the land a notice that it has taken the steps necessary to cause that notice to be deleted.

• Marginal note:Notice of prohibition on work

  (6) If a notice of abandonment of the intention to expropriate land is registered under paragraph 12(1)(b) of the Expropriation Act and the land is subject to a notice of prohibition on work, the appropriate Minister must cause the notice of prohibition on work to be deleted from the office in which it was registered and send, by registered mail or by email, the owner of the land and any lessee or occupant who received a copy of the notice under subsection 12(7) a notice that the appropriate Minister has taken the steps necessary to cause the notice of prohibition on work to be deleted.

Marginal note:Market value — exceptions

23 In determining, under section 26 of the Expropriation Act, the value of an expropriated interest or right, as defined in subsection 2(1) of that Act, no account is to be taken of any increase in the value of that expropriated interest or right resulting from work undertaken in contravention of section 13.

Property of the Corporation

Marginal note:Disposal or lease

24 Subsection 99(2) of the Financial Administration Act does not apply in respect of any sale or other disposal or lease of property held by the Corporation.

Indigenous Knowledge

Marginal note:Confidentiality

• 25 (1) Any Indigenous knowledge that is provided to the Minister, the appropriate Minister or the Corporation in relation to the high-speed rail network in confidence is confidential and must not knowingly be, or be permitted to be, disclosed without written consent.

• Marginal note:Exception

  (2) Despite subsection (1), the Indigenous knowledge referred to in that subsection may be disclosed if

  • (a) it is publicly available; or

  • (b) the disclosure is necessary for the purposes of procedural fairness and natural justice or for use in legal proceedings.

• Marginal note:Consultation

  (3) Before disclosing Indigenous knowledge under paragraph (2)(b) for the purposes of procedural fairness and natural justice, the Minister, the appropriate Minister or the Corporation, as the case may be, must consult the individual or entity who provided the Indigenous knowledge and the individual or entity to whom it is proposed to be disclosed about the scope of the proposed disclosure and potential conditions that may be imposed under subsection (4).

• Marginal note:Further disclosure

  (4) The Minister, the appropriate Minister or the Corporation, as the case may be, may, having regard to the consultation referred to in subsection (3), impose conditions with respect to the disclosure of the Indigenous knowledge by any individual or entity to whom it is disclosed under paragraph (2)(b) for the purposes of procedural fairness and natural justice.

• Marginal note:Duty to comply

  (5) The individual or entity must comply with any conditions imposed by the Minister, the appropriate Minister or the Corporation.

• Marginal note:Immunity

  (6) Despite any other Act of Parliament, the Minister, the appropriate Minister or the Corporation — or any person acting on behalf of, or under the direction of any of them — and the Crown, in respect of the disclosure of any Indigenous knowledge under this Act or any consequences that flow from that disclosure, do not incur

  • (a) civil liability, unless it is established that they acted in bad faith; or

  • (b) criminal liability, unless it is shown that their conduct was not reasonable in the circumstances.

Amendment to the Act

192 The High-Speed Rail Network Act is amended by adding the following after section 25:

Official Languages

Marginal note:Corporation's partner

26 For the purposes of the Official Languages Act, any entity with which the Corporation enters into a contract respecting the operation or maintenance of the high-speed rail network is deemed to be a federal institution, as defined in subsection 3(1) of that Act.

Marginal note:Operators

27 For the purposes of Parts IV to VI and VIII to X of the Official Languages Act, the following entities are deemed to be federal institutions, as defined in subsection 3(1) of that Act:

• (a) any entity that operates passenger rail services between Quebec City and Windsor that were, on the day on which section 1 comes into force, operated by VIA Rail Canada Inc.; and

• (b) any entity, other than an entity referred to in section 26, that operates a railway that is part of the high-speed rail network.

R.S., c. A-1Consequential Amendment to the Access to Information Act

193 Schedule II to the Access to Information Act is amended by adding, in alphabetical order, a reference to

• High Speed-Rail Network Act

  Loi sur le réseau ferroviaire à grande vitesse

and a corresponding reference to "subsections 25(1) and (2)".

Coming into Force

Marginal note:Order in council

194 Section 192 comes into force on a day to be fixed by order of the Governor in Council.

DIVISION 2R.S., c. C-10Canada Post Corporation Act

Amendments to the Act

195 The definition library material in subsection 2(1) of the Canada Post Corporation Act is repealed.

196 The Act is amended by adding the following after section 16:

Marginal note:Postage

• 16.1 (1) The Corporation may establish rates of postage and the terms and conditions related to the payment of the postage.

• Marginal note:Fair and reasonable rates

  (2) In establishing rates of postage, the Corporation must have regard to whether they are fair and reasonable and consistent so far as possible with providing a revenue that, together with any revenue from other sources, is sufficient to defray the costs incurred by the Corporation in carrying out its objects under this Act.

• Marginal note:Exception — fair and reasonable rates

  (3) Despite subsection (2), the Corporation is not required to have regard to whether a rate is fair and reasonable and consistent so far as possible with providing a revenue that, together with any revenue from other sources, is sufficient to defray the costs incurred by the Corporation in carrying out its objects under this Act, for rates that it establishes for a person who has entered into an agreement with the Corporation for

  • (a) the variation of rates of postage on the mailable matter of that person in consideration of their mailing it in bulk, preparing it in a manner that facilitates its processing or receiving additional services in relation to it; or

  • (b) the provision of experimental services related to the business of the Corporation for any period not exceeding three years.

• Marginal note:Publicly available

  (4) The Corporation must make any rates and terms and conditions that it establishes under subsection (1) publicly available as soon as feasible after establishing them.

• Marginal note:Exception — publicly available

  (5) Despite subsection (4), the Corporation is not required to make publicly available rates and terms and conditions that it establishes for a person who has entered into an agreement with the Corporation for

  • (a) the variation of rates of postage on the mailable matter of that person in consideration of their mailing it in bulk, preparing it in a manner that facilitates its processing or receiving additional services in relation to it; or

  • (b) the provision of experimental services related to the business of the Corporation for any period not exceeding three years.

• Marginal note:Refund

  (6) The Corporation may refund postage.

• 197 (1) Paragraphs 19(1)(d) to (g.1) of the Act are repealed.

• (2) Subsections 19(2) and (3) of the Act are repealed.

198 Sections 21 to 21.2 of the Act are repealed.

Coming into Force

Marginal note:Order in council

199 This Division comes into force on a day to be fixed by order of the Governor in Council.

DIVISION 3Build Canada Homes

Marginal note:Consolidated Revenue Fund — Build Canada Homes

200 The Minister of Housing, with the concurrence of the Minister of Finance, may make payments out of the Consolidated Revenue Fund in an aggregate amount not exceeding $11.5 billion, or any other amount that is specified in an appropriation Act or any other Act of Parliament, to fund the operations and activities of the portion of the federal public administration known as Build Canada Homes or of any other entity designated by the Governor in Council on the recommendation of the Minister of Housing.

Marginal note:Consolidated Revenue Fund — Canada Lands Company Limited

• 201 (1) The Minister of Housing may make payments out of the Consolidated Revenue Fund in an aggregate amount not exceeding $1.515 billion, or any other amount that is specified in an appropriation Act or any other Act of Parliament, to

  • (a) make a contribution of capital to Canada Lands Company Limited or purchase shares in Canada Lands Company Limited on behalf of His Majesty; or

  • (b) fund the operations and activities of any entity designated by the Governor in Council on the recommendation of the Minister of Housing.

• Marginal note:Contracts

  (2) For the purposes of paragraph (1)(a), Canada Lands Company Limited may enter into contracts with His Majesty as though it were not an agent of His Majesty.

DIVISION 4 2017, c. 20, s. 403Canada Infrastructure Bank Act

202 Section 23 of the Canada Infrastructure Bank Act is replaced by the following:

Marginal note:Capital payments

23 The Minister of Finance may pay to the Bank, out of the Consolidated Revenue Fund, amounts of not more than $45,000,000,000 in the aggregate, or any greater aggregate amount that may be authorized from time to time under an appropriation Act.

DIVISION 52015, c. 12Red Tape Reduction Act

Amendments to the Act

• 203 (1) The last paragraph of the preamble to the English version of the Red Tape Reduction Act is replaced by the following:

  Whereas the Government of Canada recognizes the importance of being transparent with regard to the implementation of the one-for-one rule;

• (2) The preamble to the Act is amended by adding the following after the last paragraph:

  And whereas the Government of Canada recognizes the importance of facilitating, in a transparent manner, the design, modification or administration of regulatory regimes to encourage innovation, competitiveness or economic growth while protecting public health and safety and the environment;

204 The heading before section 2 of the Act is replaced by the following:

PART 1Control of Administrative Burden

Interpretation, Application and Purpose

205 The portion of section 2 of the Act before the first definition is replaced by the following:

Marginal note:Definitions

2 The following definitions apply in this Part.

206 The heading before section 3 and sections 3 and 4 of the Act are replaced by the following:

Marginal note:Application

3 This Part applies to regulations made by or with the approval of the Governor in Council, the Treasury Board or a minister of the Crown.

Marginal note:Purpose

4 The purpose of this Part is to control the administrative burden that regulations impose on businesses.

207 Section 8 of the Act is replaced by the following:

Marginal note:Immunity

• 8 (1) No action or other proceeding may be brought against His Majesty in right of Canada for anything done or omitted to be done, or for anything purported to be done or omitted to be done, under this Part.

• Marginal note:Validity of regulations

  (2) No regulation is invalid by reason only of a failure to comply with this Part.

208 Section 11 of the Act and the heading before it are replaced by the following:

PART 2Exemptions to Encourage Innovation, Competitiveness or Economic Growth

Definition

Marginal note:Definition of entity

11 In this Part, entity includes an individual, a corporation, a partnership, an unincorporated association or organization and His Majesty in right of Canada or of a province.

Exemptions

Marginal note:Order

• 12 (1) Subject to subsections (3) and (7), a minister may, by order, for a specified validity period of not more than three years and on any terms that the minister considers appropriate, exempt an entity from the application of

  • (a) a provision of an Act of Parliament, except the Criminal Code, if the minister is responsible for the Act;

  • (b) a provision of an instrument made under an Act of Parliament, except an instrument made under the Criminal Code, if

    • (i) the minister is responsible for the Act, or

    • (ii) the body that made the instrument is accountable, through the minister, to Parliament for the conduct of its affairs; or

  • (c) a provision of an Act of Parliament, except the Criminal Code, or a provision of an instrument made under an Act of Parliament, except an instrument made under the Criminal Code, if the minister administers or enforces the provision.

• Marginal note:Requests not required to be considered

  (2) A minister is not required to consider a request for an exemption.

• Marginal note:Conditions

  (3) A minister may make an order under subsection (1) only if the minister is of the opinion that

  • (a) the exemption is in the public interest;

  • (b) the exemption would enable the testing of, among other things, a product, service, process, procedure or regulatory measure with the aim of facilitating the design, modification or administration of a regulatory regime to encourage innovation, competitiveness or economic growth;

  • (c) the benefits associated with the exemption outweigh the risks;

  • (d) sufficient resources exist, and appropriate measures will be taken, to maintain oversight of the testing, manage any risks associated with the exemption and protect public health and safety and the environment; and

  • (e) a feasible implementation plan has been developed.

• Marginal note:Exemption continues in force

  (4) For greater certainty, an exemption granted under subsection (1) continues in force until the end of the validity period specified in the order even if the testing referred to in paragraph (3)(b) is completed before the end of that period.

• Marginal note:Amendment or extension

  (5) Subject to subsection (8), a minister who has made an order under subsection (1) may, by order and on any terms the minister considers appropriate, amend it or extend the validity period of the exemption for a total period not exceeding six years only if the minister is of the opinion that

  • (a) the conditions set out in paragraphs (3)(a) and (c) are met;

  • (b) the amended exemption or extension would enable the testing referred to in paragraph (3)(b) to continue or, if such testing is already complete, would facilitate the design, modification or administration of a regulatory regime as a result of that testing;

  • (c) sufficient resources exist, and appropriate measures will be taken, to maintain oversight of any continuing testing, manage any risks associated with the amended exemption or extension, and protect public health and safety and the environment; and

  • (d) a feasible implementation plan has been developed that takes into account the amendment or extension.

• Marginal note:Revocation or suspension

  (6) A minister who has made an order under subsection (1) may, by order, revoke it or suspend its application in whole or in part.

• Marginal note:Two or more ministers

  (7) If, under subsection (1), two or more ministers may, by order, exempt the same entity from the application of the same provision, the entity may be exempted only if the ministers jointly make an order under that subsection with respect to the entity and provision.

• Marginal note:Two or more ministers — amendment, extension, revocation and suspension

  (8) The following provisions apply if, in accordance with subsection (7), two or more ministers have jointly made an order:

  • (a) the order may be amended only if the ministers jointly make an amending order under subsection (5);

  • (b) the validity period of the exemption may be extended only if the ministers jointly make an extension order under subsection (5); and

  • (c) the order made under subsection (1) is revoked or its application is suspended, in whole or in part, if one of the ministers makes a revocation or suspension order, as the case may be, under subsection (6).

• Marginal note:Statutory Instruments Act

  (9) An order made under this section is not a statutory instrument within the meaning of the Statutory Instruments Act.

Marginal note:Exemptions under other Acts

13 For greater certainty, the power to make an order under section 12 does not preclude or limit the exercise of a power to exempt under another Act of Parliament and vice versa.

Transparency and Parliamentary Oversight

Marginal note:Accessibility

• 14 (1) Subject to subsections (2) and (3), a minister must, as soon as feasible after making an order under section 12, make the order and the following information publicly accessible:

  • (a) a description of the decision-making process and a summary of the reasons for the order; and

  • (b) a description of the process for providing comments or information to, or requesting information from, the minister in relation to the order.

• Marginal note:Exception

  (2) The minister may exclude information that, in the minister's opinion, would be inappropriate to make publicly accessible for reasons that include safety or security considerations or the protection of confidential or personal information.

• Marginal note:Two or more ministers — accessibility

  (3) If two or more ministers have jointly made an order in accordance with subsection 12(7) or (8), each of them must make publicly accessible the order and the same information under paragraphs (1)(a) and (b), with the same exclusions, if any, under subsection (2).

Marginal note:Report

• 15 (1) Subject to subsection (2), the President of the Treasury Board must prepare and make public each year a report on the application of section 12 during the 12-month period ending on March 31 of the year in which the report is to be made public. The report must include a list of the orders made under section 12 that were in effect during that period and the names of the ministers who made them.

• Marginal note:Exception

  (2) The President of the Treasury Board is not required to prepare a report if no orders made under section 12 were in effect during the period referred to in subsection (1).

• Marginal note:Tabling

  (3) The President of the Treasury Board must cause the report referred to in subsection (1) to be laid before each House of Parliament on any of the first 15 days on which that House is sitting after the day on which the report is made public.

• Marginal note:Referral to Committee

  (4) The report must be referred to the Standing Committee on Government Operations and Estimates of the House of Commons or, if there is not a Standing Committee on Government Operations and Estimates, the appropriate committee of the House of Commons.

Coordinating Amendments

Marginal note:2018, c. 12

• 209 (1) In subsections (2) and (3), other Act means the Budget Implementation Act, 2018, No. 1.

• (2) If section 206 of this Act comes into force before section 259 of the other Act, then that section 259 is repealed.

• (3) If section 206 of this Act comes into force on the same day as section 259 of the other Act, then that section 259 is deemed to have come into force before that section 206.

DIVISION 6R.S., c. P-36Public Service Superannuation Act (Operational Service)

Amendments to the Act

210 The heading before section 24.1 and sections 24.1 and 24.2 of the Public Service Superannuation Act are replaced by the following:

Operational Service

Marginal note:Definition of operational service

• 24.1 (1) In sections 24.2 to 24.6, operational service means, subject to any order made under subsection (2), service of a kind designated in the regulations that is carried out in any institutions or other premises that are designated in the regulations in respect of that kind of service. It also includes any periods of time spent away from that service that are specified in the regulations.

• Marginal note:Ministerial order

  (2) The Minister may, by order, narrow the scope of a kind of service that is designated in the regulations.

Marginal note:Special pension plan

• 24.2 (1) Any person referred to in subsection (2) who was required by subsection 5(1.1) or (1.2), as it read on December 31, 2012, to contribute to the Superannuation Account or the Public Service Pension Fund or who is required by subsection 5(2) to contribute to the Public Service Pension Fund is entitled, at their option on ceasing to be employed in the public service, in respect of the operational service that is pensionable service to their credit — subject to the election they may make under subsection (3) — to an immediate annuity or annual allowance calculated in the manner prescribed by the regulations, in the circumstances and subject to the terms and conditions prescribed by those regulations, in lieu of any benefit to which that person is otherwise entitled under subsection 13(1) or 13.001(1) in respect of that service.

• Marginal note:Persons to whom subsection (1) applies

  (2) Subsection (1) applies to

  • (a) any person employed in operational service — within the meaning of that expression on the day before the day on which this subsection comes into force — by the Correctional Service of Canada on or after March 18, 1994; and

  • (b) any person, other than a person referred to in paragraph (a), employed in any kind of operational service on or after the date prescribed by the regulations for that kind of service.

• Marginal note:Election — operational service

  (3) Any person referred to in subsection (2) may, subject to the regulations, elect not to count pensionable service to their credit as operational service for the purposes of subsection (1).

• Marginal note:Amendment or revocation

  (4) Any person who makes an election under subsection (3) may, subject to the regulations, amend or revoke the election.

• Marginal note:Non-application of section 8

  (5) Section 8 does not apply in respect of an election made under subsection (3).

211 Subsection 24.4(1) of the Act is replaced by the following:

Marginal note:Additional amount to be contributed

• 24.4 (1) Subject to subsections (2) and 5(6), any person referred to in subsection 24.2(2) who is required by subsection 5(2) to contribute to the Public Service Pension Fund is, except in the circumstances described in subsection 5(3) or prescribed by the regulations, required to contribute to the Public Service Pension Fund by reservation from salary or otherwise, in addition to any other amount required under this Act, any percentage of their salary that is determined by the Treasury Board on the recommendation of the Minister, which recommendation is to be based on actuarial advice.

212 Section 24.6 of the Act is replaced by the following:

Marginal note:Adjustment of annuity or annual allowance

24.6 If a person who was employed in operational service and who is receiving an annual allowance payable under subsection 24.2(1) is subsequently re-employed in the public service, the amount of any annuity or annual allowance to which the person may become entitled under this Part on again ceasing to be employed in the public service shall be adjusted in accordance with regulations made under paragraph 42(1)(x.1) to take into account the amount of any annual allowance that the person has received.

• 213 (1) Paragraphs 42.1(1)(m) to (q) of the Act are replaced by the following:

  • (m) for the purposes of the definition operational service in subsection 24.1(1), designating the kind of service and the institutions or other premises in which that kind of service is carried out and specifying the periods of time spent away from operational service that are to be included within the meaning of that definition;

  • (n) prescribing the terms and conditions subject to which a person who ceases to be employed in operational service, as defined in subsection 24.1(1), but continues to be employed in the public service may elect to be deemed to be employed in operational service while the person continues to be so employed;

  • (o) respecting the determination of the effective date on which a person shall be deemed to have become or to have ceased to be employed in operational service, as defined in subsection 24.1(1);

  • (p) prescribing, for the purposes of sections 24.2 and 24.3 and any regulations made under this subsection, the terms and conditions subject to which any service before, on or after the coming into force of those sections may be counted as operational service, as defined in subsection 24.1(1), that is pensionable service;

  • (q) prescribing the circumstances in which and the terms and conditions subject to which a person is entitled, at the person's option, to an immediate annuity or annual allowance under subsection 24.2(1), prescribing the manner of calculating or adjusting that immediate annuity or annual allowance and prescribing the circumstances in which the person is deemed to have exercised the option in favour of either an immediate annuity or annual allowance;

  • (r) prescribing the date on which paragraph 24.2(2)(b) applies to a person employed in service of a given kind;

  • (r.1) prescribing the circumstances in which and the terms and conditions subject to which an election may be made under subsection 24.2(3), the period within which it may be made and the manner of making it;

  • (r.2) prescribing the circumstances in which and the terms and conditions subject to which a person may amend or revoke an election under subsection 24.2(4), the period within which it may be amended or revoked and the manner of amending or revoking it;

  • (r.3) prescribing the circumstances in which a person is not required to make a contribution under subsection 24.4(1);

• (2) Paragraph 42.1(1)(t) of the Act is replaced by the following:

  • (t) requiring the Minister to credit additional amounts to the Superannuation Account, or to pay additional amounts into the Public Service Pension Fund, in respect of operational service, as defined in subsection 24.1(1), that is pensionable service to the credit of a person referred to in subsection 24.2(2) and prescribing the manner and circumstances in which those amounts are to be credited or paid;

• 214 (1) The portion of the definition recipient in section 64 of the Act before paragraph (a) is replaced by the following:

  recipient

  recipient means a person who is in receipt of a pension, but does not include a person who is in receipt of an immediate annuity or annual allowance under section 16 or subsection 24.2(1) unless

• (2) The portion of paragraph (c) of the definition recipient in section 64 of the Act before subparagraph (i) is replaced by the following:

  • (c) that immediate annuity or annual allowance is based on a number of years of operational service, as defined in section 15 or subsection 24.1(1), as the case may be, that is pensionable service and that pensionable service consists of not less than

215 Subsection 69(4) of the Act is replaced by the following:

• Marginal note:Deemed retirement year

  (4) For the purposes of subsection (3), when that subsection is applied in determining under subsection (2) the supplementary benefit payable to a person in respect of a pension payable under subsection 17(2) or 24.2(1), the person is deemed to have ceased to be employed at the time they ceased to be employed in operational service, as defined in section 15 or subsection 24.1(1), as the case may be.

Coming into Force

Marginal note:Order in council

216 This Division comes into force on a day to be fixed by order of the Governor in Council.

DIVISION 7R.‍S.‍, c. P-36Public Service Superannuation Act (Workforce Reduction)

Amendments to the Act

• 217 (1) Subparagraph 13(1)(c)(ii) of the Public Service Superannuation Act is amended by striking out "or" at the end of clause (C) and by adding the following after that clause:

  • (C.1) subject to subsection (1.1), if at the time the contributor exercises their option under this clause a workforce reduction initiative is in effect, and if at the time they cease to be so employed they have reached 50 years of age and have been employed in the public service for a period of or for periods totalling at least 10 years, an annual allowance, payable immediately on their so ceasing to be employed, equal to the amount of the deferred annuity referred to in clause (A), or

• (2) Section 13 of the Act is amended by adding the following after subsection (1):

  • Marginal note:Limitation on entitlement to annual allowance

    (1.1) A contributor is not entitled to an annual allowance under clause (1)(c)(ii)(C.1) unless the Treasury Board approves their entitlement to it based on the criteria that it establishes and the contributor ceases to be employed in the public service during the period that begins on the day on which this subsection comes into force and ends on the 300th day after that day.

  • Marginal note:Limitation on approval

    (1.2) The Treasury Board is not authorized to approve entitlement to an annual allowance referred to in clause (1)(c)(ii)(C.1) after the 120th day after the day on which this subsection comes into force.

• 218 (1) Subparagraph 13.001(1)(c)(ii) of the Act is amended by striking out "or" at the end of clause (C) and by adding the following after that clause:

  • (C.1) subject to subsection (1.1), if at the time the contributor exercises their option under this clause a workforce reduction initiative is in effect, and if at the time they cease to be so employed they have reached 55 years of age and have been employed in the public service for a period of or for periods totalling at least 10 years, an annual allowance, payable immediately on their so ceasing to be employed, equal to the amount of the deferred annuity referred to in clause (A), or

• (2) Section 13.001 of the Act is amended by adding the following after subsection (1):

  • Marginal note:Limitation on entitlement to annual allowance

    (1.1) A contributor is not entitled to an annual allowance under clause (1)(c)(ii)(C.1) unless the Treasury Board approves their entitlement to it based on the criteria that it establishes and the contributor ceases to be employed in the public service during the period that begins on the day on which this subsection comes into force and ends on the 300th day after that day.

  • Marginal note:Limitation on approval

    (1.2) The Treasury Board is not authorized to approve entitlement to an annual allowance referred to in clause (1)(c)(ii)(C.1) after the 120th day after the day on which this subsection comes into force.

219 The Act is amended by adding the following after section 44.2:

Marginal note:Payment — waiver of reductions

44.21 Despite subsection 43(1) of this Act and section 21 of the Special Retirement Arrangements Act, the amount of the reduction provided for by clause 13(1)(c)(ii)(C) or 13.001(1)(c)(ii)(C) that, under either of those clauses, is waived by the Treasury Board during the period that begins on the day on which this section comes into force and ends on the 300th day after that day, is to be charged to the Public Service Pension Fund and paid out of the assets of the Public Sector Pension Investment Board.

Marginal note:Payment — difference in amounts

44.22 Despite subsection 43(1) of this Act and section 21 of the Special Retirement Arrangements Act, the difference between the amount of the annual allowance that is payable to a contributor under clause 13(1)(c)(ii)(C.1) or 13.001(1)(c)(ii)(C.1) — and the amount of the annual allowance that would have been payable to them had they exercised an option under clause 13(1)(c)(ii)(B), (C) or (D) or 13.001(1)(c)(ii)(B), (C) or (D) and ceased to be employed in the public service at the same time as they in fact ceased to be so employed — is to be charged to the Public Service Pension Fund and paid out of the assets of the Public Sector Pension Investment Board.

220 The Act is amended by adding the following after section 46:

Transitional Provisions

Marginal note:Definition of transitional period

• 46.01 (1) In this section, transitional period means the period that begins on the day on which clauses 13(1)(c)(ii)(C.1) and 13.001(1)(c)(ii)(C.1) come into force and ends on the 120th day after that day.

• Marginal note:Application

  (2) This section applies to a contributor who, during the transitional period, exercised an option under clause 13(1)(c)(ii)(C.1) or 13.001(1)(c)(ii)(C.1) but remained employed in the public service.

• Marginal note:Continuation — power to approve

  (3) Despite subsections 13(1.2) and 13.001(1.2), during the period that begins on the first day after the day on which the transitional period ends and ends on the 179th day after that first day, the Treasury Board is authorized, in respect of contributors to whom this section applies, to approve, based on the criteria established by the Treasury Board, their entitlement to an annual allowance referred to in clause 13(1)(c)(ii)(C.1) or 13.001(1)(c)(ii)(C.1).

C.R.C., c. 945Related Amendment to the Income Tax Regulations

221 Subsection 8503(13) of the Income Tax Regulations is amended by striking out "and" at the end of paragraph (a), by adding "and" at the end of paragraph (b) and by adding the following after paragraph (b):

• (c) the conditions in section 8303, paragraph (3)(c) and section 8504 do not apply in respect of benefits provided to a member under the pension plan established by the Public Service Superannuation Act if the benefits arise as a result of a waiver granted by the Treasury Board, before 2028, of any early retirement reductions in respect of the member that would otherwise apply under that Act or under the Retirement Compensation Arrangements Regulations, No. 1.

Coming into Force

Marginal note:January 15, 2026 or royal assent

• 222 (1) Sections 217 to 219 and 221 come into force on the later of the day on which this Act receives royal assent and January 15, 2026.

• Marginal note:121st day after the coming into force of section 217

  (2) Section 220 comes into force on the 121st day after the day on which section 217 comes into force.

DIVISION 81993, c. 14; 2001, c. 22, s. 2Farm Credit Canada Act

223 The Farm Credit Canada Act is amended by adding the following after section 16:

Review of Act

Marginal note:Review

• 16.1 (1) Within five years after the day on which this section comes into force and every 10 years after that, the Minister of Agriculture and Agri-Food must, in consultation with the Minister of Finance, undertake a review of the provisions and operation of this Act.

• Marginal note:Report to Parliament

  (2) Within one year after the day on which the review is undertaken, the Minister of Agriculture and Agri-Food must cause a report of the review to be tabled in each House of Parliament.

• Marginal note:Review of report

  (3) The report must be reviewed by any committee of the Senate or of the House of Commons to which it is referred.

DIVISION 9Consumer-Driven Banking

Consumer-Driven Banking Act

Marginal note:Enactment of Act

224 The Consumer-Driven Banking Act, whose text is as follows and whose schedule is set out in Schedule 2 to this Act, is enacted:

An Act to establish a consumer-driven banking framework

Short Title

Marginal note:Short title

1 This Act may be cited as the Consumer-Driven Banking Act.

Definitions

Marginal note:Definitions

2 The following definitions apply in this Act.

authentication information

authentication information means any password or other information that a consumer creates or adopts to be used to authenticate their identity. (authentifiant)

Bank

Bank means the Bank of Canada. (Banque)

complaint

complaint means an expression of dissatisfaction, whether justified or not, to a participating entity with respect to any activity that it performs under this Act. (plainte)

derived data

derived data means, subject to the regulations, data about a consumer, product or service that has been enhanced by a participating entity to significantly increase its usefulness or commercial value. (données dérivées)

entity

entity means a corporation, trust, partnership, fund, unincorporated association or organization or federal or provincial Crown corporation. (entité)

external complaints body

external complaints body means the corporation designated under subsection 114(1). (organisme externe de traitement des plaintes)

federal financial institution

federal financial institution means

• (a) a bank that is listed in Schedule I or II to the Bank Act;

• (b) an authorized foreign bank as defined in section 2 of the Bank Act;

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

• (d) an association to which the Cooperative Credit Associations Act applies; or

• (e) a company, fraternal benefit society or foreign company to which the Insurance Companies Act applies. (institution financière fédérale)

government authority

government authority includes the Royal Canadian Mounted Police, the Communications Security Establishment and the Canadian Security Intelligence Service. (autorité administrative)

Governor

Governor has the same meaning as in section 2 of the Bank of Canada Act. (gouverneur)

Minister

Minister means the Minister of Finance. (ministre)

participating entity

participating entity means

• (a) a bank that is listed in the schedule;

• (b) a federal financial institution or provincial financial institution that is accredited under section 15;

• (c) a registered payment service provider that is accredited under section 17; or

• (d) an entity that is accredited under section 19. (entité participante)

provincial financial institution

provincial financial institution means

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

• (b) a provincial Crown corporation that offers deposit-taking services; or

• (c) an insurance company that is regulated by a provincial Act. (institution financière provinciale)

registered payment service provider

registered payment service provider means a payment service provider, as defined in section 2 of the Retail Payment Activities Act, that is registered, as defined in that section. (fournisseur de services de paiement enregistré)

registry

registry means the registry that is maintained under section 44. (registre)

sharing

sharing, in respect of consumer data, means the provision or receipt of that data by participating entities. (partage)

technical standards body

technical standards body means the body designated under subsection 125(1). (organisme de normalisation technique)

third-party service provider

third-party service provider means an individual or entity that is not an employee or an agent or mandatary of a participating entity and that, under a contract, provides the participating entity with a service that is related to the activities that the participating entity performs under this Act. (tiers fournisseur de services)

Purpose

Marginal note:Purpose

3 The purpose of this Act is to establish a framework within which consumers, including businesses, can direct that their data be shared among participating entities of their choice, to ensure that the sharing of data among participating entities is safe and secure and to foster competition in the financial sector.

Objects of the Bank

Marginal note:Objects

4 The Bank's objects under this Act are to

• (a) supervise participating entities, accredited third-party service providers, the external complaints body and the technical standards body to determine whether they are in compliance with

  • (i) the provisions of this Act and the regulations that are applicable to them, and

  • (ii) orders made, undertakings required, compliance agreements entered into and directions made under this Act;

• (b) monitor and evaluate trends and emerging issues that may have an impact on consumers of consumer-driven banking, including trends and issues in respect of products, services and market developments, and make information on those trends and issues public;

• (c) foster participation in consumer-driven banking in cooperation with any department, agency or agent corporation of the Government of Canada or any department, agency or agent or mandatary corporation of the government of a province, financial institutions and consumer and other organizations; and

• (d) foster competition in the financial sector in the interests of consumers.

Marginal note:Agreements or arrangements

5 The Bank may, for the purpose of exercising its powers or performing its duties and functions under this Act, enter into an agreement or arrangement with any government authority or regulatory body.

Marginal note:Guidelines — Bank

• 6 (1) Subject to subsection (2), the Bank may issue guidelines respecting the manner in which this Act is to be applied.

• Marginal note:Guidelines — Minister

  (2) The Minister may issue guidelines respecting the manner in which any provision of this Act that confers powers, duties or functions on the Minister is to be applied.

Marginal note:Publication of information — regulations

• 7 (1) The Bank must publish, within the time and in the manner provided for in the regulations, the information that is provided for in the regulations respecting consumer-driven banking.

• Marginal note:Publication of information as appropriate

  (2) The Bank may publish any information with respect to consumer-driven banking that the Bank considers appropriate.

Marginal note:Personal information

8 The Bank may collect any personal information that the Bank considers necessary for carrying out its objects under this Act.

Marginal note:Delegation of Governor's powers, duties and functions

9 The Governor may delegate to an officer of the Bank any of the Governor's powers, duties or functions under this Act.

Application

Marginal note:Data

• 10 (1) This Act applies in respect of data that relates to the following products and services, including data that is provided by a consumer and data that is provided for in the regulations:

  • (a) deposit accounts;

  • (b) registered investment accounts;

  • (c) non-registered investment accounts;

  • (d) payment products;

  • (e) lines of credit, mortgages or hypothecs and other kinds of loans; and

  • (f) other products or services provided for in the regulations.

• Marginal note:Exclusion

  (2) This Act does not apply in respect of derived data.

Marginal note:Limit — editing data

11 Data that is shared between participating entities in accordance with this Act is to be shared in a manner that does not enable the participating entity that receives the data to edit the data on servers that are used by the participating entity that provides the data.

Marginal note:Restriction

12 Nothing in this Act affects any restriction imposed under the Bank Act on banks with respect to the sharing of information about a consumer with an insurance company, agent or broker for the business of insurance.

Participating Entities

Banks Listed in Schedule

Marginal note:Adding to schedule

• 13 (1) The Minister may, by order, amend the schedule by adding the name of a bank that is listed in Schedule I to the Bank Act.

• Marginal note:Amendment

  (2) The Minister may, by order, amend the schedule by amending the name of a bank.

• Marginal note:Deletion

  (3) The Minister may, by order, amend the schedule by deleting the name of a bank if the bank is dissolved or if it is continued, or amalgamated and continued, as a corporation to which another Act of Parliament applies.

• Marginal note:Order to be published

  (4) An order made under this section must be published in the Canada Gazette.

Marginal note:Notice to Bank

• 14 (1) The Minister must, as soon as feasible, notify the Bank of any amendment that is made to the schedule.

• Marginal note:Registry

  (2) As soon as feasible after being notified of an amendment to the schedule, the Bank must

  • (a) add to the registry the name of any bank whose name was added to the schedule, the date on which it was added to the schedule and any other relevant information;

  • (b) amend in the registry the name of any bank whose name was amended in the schedule; or

  • (c) delete from the registry the name of any bank whose name was deleted from the schedule and all other information about the bank.

• Marginal note:Notice to bank

  (3) As soon as feasible after amending the registry under this section, the Bank must notify the bank to which the amendment relates.

Federal Financial Institutions and Provincial Financial Institutions

Marginal note:Accreditation

• 15 (1) Subject to sections 50 and 52, the Bank may, on application made in accordance with the regulations, accredit a federal financial institution, other than a bank that is listed in the schedule, or provincial financial institution if the Bank is satisfied that the federal financial institution or provincial financial institution is in compliance with the technical standard referred to in subsection 125(1) and the security safeguards provided for in the regulations.

• Marginal note:Fee

  (2) An applicant must include with the application an accreditation fee determined in accordance with the regulations.

• Marginal note:Information

  (3) At the Bank's request and within the time and in the manner specified by the Bank, an applicant must provide the Bank with any information that is relevant to the application.

• Marginal note:Notice of change to information

  (4) As soon as feasible after an applicant becomes aware that information provided as part of the application has changed or is about to change, the applicant must notify the Bank of the change or anticipated change, and the Bank must then, as soon as feasible, notify the Minister and any designated person or government authority.

Marginal note:Notice and addition to registry

16 As soon as feasible after deciding to accredit an applicant or refuse an application, the Bank must notify the applicant in writing of the decision and the reasons for it and, in the case of a decision to accredit, add to the registry the applicant's name, the date of accreditation and any other relevant information.

Registered Payment Service Providers

Marginal note:Accreditation

• 17 (1) Subject to sections 50 and 52, the Bank may, on application made in accordance with the regulations, accredit a registered payment service provider if the Bank is satisfied that it meets the requirements provided for in the regulations.

• Marginal note:Fee

  (2) An applicant must include with the application an accreditation fee determined in accordance with the regulations.

• Marginal note:Information

  (3) At the Bank's request and within the time and in the manner specified by the Bank, an applicant must provide the Bank with any information that is relevant to the application.

• Marginal note:Notice of change to information

  (4) As soon as feasible after an applicant becomes aware that information provided as part of the application has changed or is about to change, the applicant must notify the Bank of the change or anticipated change, and the Bank must then, as soon as feasible, notify the Minister and any designated person or government authority.

Marginal note:Notice and addition to registry

18 As soon as feasible after deciding to accredit an applicant or refuse an application, the Bank must notify the applicant in writing of the decision and the reasons for it and, in the case of a decision to accredit, add to the registry the applicant's name, the date of accreditation and any other relevant information.

Other Entities

Marginal note:Accreditation

• 19 (1) Subject to sections 50 and 52, the Bank may, on application made in accordance with the regulations, accredit an entity other than a federal financial institution or provincial financial institution or a registered payment service provider, if the Bank is satisfied that the entity meets the requirements provided for in the regulations.

• Marginal note:Fee

  (2) An applicant must include with the application an accreditation fee determined in accordance with the regulations.

• Marginal note:Information

  (3) At the Bank's request and within the time and in the manner specified by the Bank, an applicant must provide the Bank with any information that is relevant to the application.

• Marginal note:Notice of change to information

  (4) As soon as feasible after an applicant becomes aware that information provided as part of the application has changed or is about to change, the applicant must notify the Bank of the change or anticipated change, and the Bank must then, as soon as feasible, notify the Minister and any designated person or government authority.

Marginal note:Notice and addition to registry

20 As soon as feasible after deciding to accredit an applicant or refuse an application, the Bank must notify the applicant in writing of the decision and the reasons for it and, in the case of a decision to accredit, add to the registry the applicant's name, the date of accreditation and any other relevant information.

Refusal to Accredit

Marginal note:Review

• 21 (1) An applicant that has been notified under section 16, 18 or 20 of a decision to refuse its application for accreditation may, within the period provided for in the regulations, make a request to the Governor for a review of the decision.

• Marginal note:Decision

  (2) After giving the applicant an opportunity to make representations, the Governor must, within the period provided for in the regulations, confirm the refusal or accredit the applicant.

• Marginal note:Notice and addition to registry

  (3) As soon as feasible after deciding to confirm the refusal or accredit the applicant, the Governor must notify the applicant in writing of the decision and the reasons for it and, in the case of a decision to accredit, add to the registry the applicant's name, the date of accreditation and any other relevant information.

Suspension and Revocation

Marginal note:Request for revocation

• 22 (1) The Bank must revoke a participating entity's accreditation at the request of the participating entity if the Bank is satisfied that the participating entity

  • (a) has complied with its duties under this Act;

  • (b) has, in accordance with the regulations and at least 30 days before the day on which it makes the request for revocation, notified in writing any consumers that use the services that it provides in accordance with this Act of its intention to request revocation and provided those consumers with any other information that is provided for in the regulations; and

  • (c) in the case of a participating entity that is a provincial financial institution, has, at least 30 days before the day on which it makes the request for revocation, notified in writing the appropriate provincial authority that regulates or supervises the provincial financial institution of its intention to request revocation.

• Marginal note:Notice of decision

  (2) The Bank must, as soon as feasible, notify the participating entity in writing of the decision with respect to the request and the reasons for the decision.

• Marginal note:Reference to revocation in registry

  (3) If the Bank decides to revoke the participating entity's accreditation, the Bank must, as soon as feasible, include a reference to the revocation in the registry.

Marginal note:Suspension

• 23 (1) The Bank may suspend a participating entity's accreditation if the Bank is satisfied that the participating entity has contravened this Act or the regulations.

• Marginal note:Reference to suspension in registry

  (2) The Bank must, as soon as feasible, include a reference to the suspension in the registry.

• Marginal note:Conditions

  (3) The Bank may impose any conditions that the Bank considers appropriate on a participating entity whose accreditation is suspended and the participating entity must comply with those conditions.

• Marginal note:Notice

  (4) The Bank must, as soon as feasible, notify the participating entity in writing of the suspension and any conditions imposed.

• Marginal note:Notice to consumers

  (5) As soon as feasible after being notified of the suspension, the participating entity must notify in writing any consumers that use the services that it provides in accordance with this Act of the suspension and any conditions imposed.

Marginal note:End of suspension

24 If the Bank is satisfied that the grounds for suspending a participating entity's accreditation no longer exist, the Bank must end the suspension and must, as soon as feasible, notify the participating entity in writing that the suspension has ended and remove the reference to the suspension from the registry.

Marginal note:Notice of intent to revoke accreditation

25 The Bank may give a participating entity a notice of intent to revoke the participating entity's accreditation if the Bank is satisfied that the participating entity has contravened this Act or the regulations. A notice of intent must include reasons.

Marginal note:Review of notice of intent

• 26 (1) A participating entity that has been given a notice of intent to revoke may, within the period provided for in the regulations, make a request to the Governor for a review of the notice of intent.

• Marginal note:Decision

  (2) After giving the participating entity an opportunity to make representations, the Governor must, within the period provided for in the regulations, revoke the participating entity's accreditation or withdraw the notice of intent.

• Marginal note:Notice to participating entity

  (3) The Governor must, as soon as feasible, notify the participating entity in writing of the decision and the reasons for it.

Marginal note:Review not requested

27 If a participating entity that has been given a notice of intent to revoke does not make a request for a review within the period provided for in the regulations, the Bank must revoke the participating entity's accreditation or withdraw the notice of intent. The Bank must, as soon as feasible, notify the participating entity in writing of the decision and the reasons for it.

Marginal note:Reference to revocation in registry

28 If the Governor revokes a participating entity's accreditation under subsection 26(2) or the Bank does so under section 27, the Bank must, as soon as feasible, include a reference to the revocation in the registry.

Marginal note:Duties of former participating entity

29 A participating entity whose accreditation has been revoked must, as soon as feasible after being notified of the revocation under subsection 26(3) or section 27, comply with its duties under this Act and, in accordance with the regulations, notify in writing any consumers that used the services that it provided in accordance with this Act and provide those consumers with any other information that is provided for in the regulations.

Marginal note:Notice to appropriate provincial authority

30 If the Bank gives notice under subsection 22(2) or 23(4) or section 24, 25 or 27 to a participating entity that is a provincial financial institution, or the Governor does so under subsection 26(3), the Bank or the Governor, as the case may be, must, as soon as feasible, notify the appropriate provincial authority that regulates or supervises the provincial financial institution.

Accredited Third-Party Service Providers

Marginal note:Accreditation required

31 A participating entity must not use a third-party service provider to perform any of the following activities under this Act unless the third-party service provider is accredited under section 32:

• (a) obtaining or managing consumers' consent on behalf of the participating entity;

• (b) confirming consumers' authentication information or managing the authentication of consumers on behalf of the participating entity;

• (c) providing or receiving consumer data on behalf of the participating entity.

Marginal note:Accreditation

• 32 (1) Subject to sections 50 and 52, the Bank may, on application made in accordance with the regulations, accredit an individual or entity to perform one or more of the activities referred to in paragraphs 31(a) to (c) if the Bank is satisfied that the individual or entity meets the requirements provided for in the regulations.

• Marginal note:Fee

  (2) An applicant must include with the application an accreditation fee determined in accordance with the regulations.

• Marginal note:Information

  (3) At the Bank's request and within the time and in the manner specified by the Bank, an applicant must provide the Bank with any information that is relevant to the application.

• Marginal note:Notice of change to information

  (4) As soon as feasible after an applicant becomes aware that information provided as part of the application has changed or is about to change, the applicant must notify the Bank of the change or anticipated change, and the Bank must then, as soon as feasible, notify the Minister and any designated person or government authority.

Marginal note:Notice and addition to registry

33 As soon as feasible after deciding to accredit an applicant or refuse an application, the Bank must notify the applicant in writing of the decision and the reasons for it and, in the case of a decision to accredit, add to the registry the applicant's name, the date of accreditation and any other relevant information.

Marginal note:Review

• 34 (1) An applicant that has been notified under section 33 of a decision to refuse its application for accreditation may, within the period provided for in the regulations, make a request to the Governor for a review of the decision.

• Marginal note:Decision

  (2) After giving the applicant an opportunity to make representations, the Governor must, within the period provided for in the regulations, confirm the refusal or accredit the applicant.

• Marginal note:Notice and addition to registry

  (3) The Governor must, as soon as feasible, notify the applicant in writing of the decision and the reasons for it and, in the case of a decision to accredit, add to the registry the applicant's name, the date of accreditation and any other relevant information.

Marginal note:Request for revocation

• 35 (1) The Bank must revoke an accredited third-party service provider's accreditation at the request of the accredited third-party service provider if the Bank is satisfied that the accredited third-party service provider has complied with its duties under this Act.

• Marginal note:Notice of decision

  (2) The Bank must, as soon as feasible, notify the accredited third-party service provider in writing of the decision with respect to the request and the reasons for the decision.

• Marginal note:Reference to revocation in registry

  (3) If the Bank decides to revoke the accredited third-party service provider's accreditation, the Bank must, as soon as feasible, include a reference to the revocation in the registry.

Marginal note:Suspension

• 36 (1) The Bank may suspend an accredited third-party service provider's accreditation if the Bank is satisfied that the accredited third-party service provider has contravened this Act or the regulations.

• Marginal note:Reference to suspension in registry

  (2) The Bank must, as soon as feasible, include a reference to the suspension in the registry.

• Marginal note:Conditions

  (3) The Bank may impose any conditions that the Bank considers appropriate on an accredited third-party service provider whose accreditation is suspended and the accredited third-party service provider must comply with those conditions.

• Marginal note:Notice

  (4) The Bank must, as soon as feasible, notify the accredited third-party service provider in writing of the suspension and any conditions imposed.

• Marginal note:Notice to participating entities

  (5) As soon as feasible after being notified of the suspension, the accredited third-party service provider must notify in writing any participating entities on whose behalf it is performing any of the activities for which it was accredited of the suspension and any conditions imposed.

Marginal note:End of suspension

37 If the Bank is satisfied that the grounds for suspending an accredited third-party service provider's accreditation no longer exist, the Bank must end the suspension and must, as soon as feasible, notify the accredited third-party service provider in writing that the suspension has ended and remove the reference to the suspension from the registry.

Marginal note:Notice of intent to revoke accreditation

38 The Bank may give an accredited third-party service provider a notice of intent to revoke the accredited third-party service provider's accreditation if the Bank is satisfied that the accredited third-party service provider has contravened this Act or the regulations. A notice of intent must include reasons.

Marginal note:Review of notice of intent

• 39 (1) An accredited third-party service provider that has been given a notice of intent to revoke may, within the period provided for in the regulations, make a request to the Governor for a review of the notice of intent.

• Marginal note:Decision

  (2) After giving the accredited third-party service provider an opportunity to make representations, the Governor must, within the period provided for in the regulations, revoke the accredited third-party service provider's accreditation or withdraw the notice of intent.

• Marginal note:Notice to accredited third-party service provider

  (3) The Governor must, as soon as feasible, notify the accredited third-party service provider in writing of the decision and the reasons for it.

Marginal note:Review not requested

40 If an accredited third-party service provider that has been given a notice of intent to revoke does not make a request for a review within the period provided for in the regulations, the Bank must revoke the accredited third-party service provider's accreditation or withdraw the notice of intent. The Bank must, as soon as feasible, notify the accredited third-party service provider in writing of the decision and the reasons for it.

Marginal note:Reference to revocation in registry

41 If the Governor revokes an accredited third-party service provider's accreditation under subsection 39(2) or the Bank does so under section 40, the Bank must, as soon as feasible, include a reference to the revocation in the registry.

Marginal note:Duties of former accredited third-party service provider

42 A third-party service provider whose accreditation has been revoked must, as soon as feasible after being notified of the revocation under subsection 39(3) or section 40, comply with its duties under this Act and, in accordance with the regulations, notify in writing any participating entities on whose behalf it was performing, at the time of the revocation, any of the activities for which it was accredited and provide those participating entities with any other information that is provided for in the regulations.

Appeal to Federal Court

Marginal note:Right of appeal

• 43 (1) An applicant that has been notified under subsection 21(3) or 34(3) of a decision to refuse accreditation, a participating entity that has been notified under subsection 26(3) of a decision to revoke its accreditation or an accredited third-party service provider that has been notified under subsection 39(3) of a decision to revoke its accreditation may appeal the decision to the Federal Court within the period provided for in the regulations or any longer period that the Court allows.

• Marginal note:Powers of Federal Court

  (2) The Federal Court may dismiss the appeal or set aside the decision and refer the matter back to the Governor for redetermination.

Registry

Marginal note:Registry

44 The Bank must maintain a public registry that includes the following information:

• (a) the name and address of each participating entity;

• (b) in the case of a participating entity that is a bank that is listed in the schedule, the date on which its name was added to the schedule;

• (c) in the case of a participating entity that is accredited under section 15, 17 or 19, the date on which it was accredited;

• (d) the status of each participating entity, the date of any change to its status and, if applicable, the reasons for which its accreditation was revoked;

• (e) any other information provided for in the regulations in relation to a participating entity or the activities that it performs under this Act;

• (f) the name and address of each accredited third-party service provider and the date on which it was accredited;

• (g) the status of each accredited third-party service provider, the date of any change to its status and, if applicable, the reasons for which its accreditation was revoked; and

• (h) any other information provided for in the regulations in relation to an accredited third-party service provider or the activities that it performs under this Act.

National Security

Designation

Marginal note:Designation

45 The Minister may designate a person or government authority for the purposes of subsections 15(4), 17(4), 19(4) and 32(4), section 46, paragraph 51(e), section 54, paragraph 66(1)(e), sections 71 and 73, subsections 98(3) and 120(3) and sections 132, 137, 139 and 173.

Review of Application for Accreditation

Marginal note:Copy of application

46 The Bank must, as soon as feasible after determining that an application for accreditation is complete, provide the Minister and any designated person or government authority with a copy of the application.

Marginal note:Decision to review application

• 47 (1) The Minister may, within the period provided for in the regulations, decide to review an application for accreditation if the Minister is of the opinion that it is necessary to do so for reasons related to national security. In that case, the Minister must notify the Bank of the decision and the Bank must then notify the applicant.

• Marginal note:Extension of period

  (2) The Minister may extend the period for one or more periods provided for in the regulations if the Minister considers it necessary to do so and notifies the Bank. In that case, the Bank must notify the applicant of the extension.

Marginal note:Review

• 48 (1) If the Minister decides to review an application for accreditation, the Minister must conduct the review within the period provided for in the regulations. After completing the review, the Minister must issue a directive to refuse accreditation to the Bank under section 51 or notify the Bank that the Minister has decided not to issue a directive under that section.

• Marginal note:Extension of period

  (2) The Minister may extend the period for conducting the review for one or more periods provided for in the regulations if the Minister considers it necessary to do so and notifies the Bank. In that case, the Bank must notify the applicant of the extension.

Marginal note:Notice to applicant

49 If the Bank is notified that the Minister has decided not to issue a directive under section 51, the Bank must notify the applicant of the decision.

Marginal note:No accreditation

50 The Bank must not accredit an applicant during a period referred to in subsection 47(1) or (2) unless the Minister notifies the Bank that the Minister has decided not to review the application. If the Minister notifies the Bank that the Minister has decided to review the application, the Bank must not accredit the applicant unless the Minister notifies the Bank that the Minister has decided not to issue a directive under section 51.

Marginal note:Directive to refuse accreditation

51 The Minister may issue a directive to the Bank to refuse to accredit an applicant if

• (a) there are reasons related to national security;

• (b) the applicant has failed to provide additional information in accordance with section 54;

• (c) an order made under section 55, or an undertaking required under that section, that relates to the application for accreditation has not been complied with;

• (d) a term or condition imposed under section 56 that relates to the application for accreditation has not been complied with; or

• (e) the applicant has provided false or misleading information to the Bank, the Minister or a designated person or government authority.

Marginal note:Refusal to accredit

52 The Bank must refuse to accredit an applicant if the Minister issues a directive to that effect and must, as soon as feasible, notify the applicant in writing that the application has been refused in accordance with a directive issued by the Minister.

Marginal note:Review of directive

• 53 (1) An applicant that has been notified under section 52 may, within the period provided for in the regulations, request a review by the Minister of the directive to refuse accreditation. The request must be submitted to the Bank, which must then, as soon as feasible, transmit it to the Minister.

• Marginal note:Decision and notice

  (2) On completion of the review and after giving the applicant an opportunity to make representations, the Minister must confirm or revoke the directive. The Minister must notify the Bank of the decision and the Bank must then, as soon as feasible, notify the applicant in writing.

Marginal note:Additional information

• 54 (1) An applicant must provide the Minister and any designated person or government authority with any additional information that the Minister or the designated person or government authority requests, for reasons related to national security, in relation to the applicant or the activities that the applicant plans to perform under this Act.

• Marginal note:Manner

  (2) A request for information under subsection (1) must be submitted to the Bank, which must then, as soon as feasible, transmit it to the applicant. The applicant must, within the period provided for in the regulations, provide the requested information to the Bank, which must then, as soon as feasible, provide it to the Minister and any designated person or government authority.

Undertakings and Terms and Conditions

Marginal note:Undertakings

55 The Minister may, by order, require any individual or entity to provide an undertaking in relation to an application for accreditation or in relation to a participating entity or accredited third-party service provider if the Minister is of the opinion that it is necessary to do so for reasons related to national security.

Marginal note:Terms and conditions

56 The Minister may, by order, impose terms and conditions on any individual or entity in relation to an application for accreditation or in relation to a participating entity or accredited third-party service provider if the Minister is of the opinion that it is necessary to do so for reasons related to national security.

Marginal note:Revocation, suspension or amendment

57 The Minister may, by order, revoke or suspend an undertaking required by the Minister or approve its amendment, or revoke, suspend or amend any terms and conditions imposed by the Minister.

Marginal note:Effect on accreditation

58 Unless otherwise expressly provided in this Act, a failure to comply with an order made under section 55, an undertaking required under that section or any terms and conditions imposed under section 56 does not invalidate an accreditation to which the order, undertaking or terms and conditions relate.

Marginal note:Copy to Bank

59 The Minister must provide a copy of each order made under sections 55 to 57 to the Bank, which must then, as soon as feasible, provide a copy to the individual or entity in question.

Marginal note:National security order

• 60 (1) The Minister may, by order, direct a participating entity, an accredited third-party service provider or any director, officer or agent or mandatary of a participating entity or accredited third-party service provider to take or refrain from taking any measures related to the activities that the participating entity or accredited third-party service provider performs under this Act if the Minister is of the opinion that it is necessary to do so for reasons related to national security.

• Marginal note:Representations

  (2) Subject to subsection (3), the Minister must not make an order under subsection (1) unless the participating entity, accredited third-party service provider, entity or individual in question is provided with an opportunity to make representations in respect of the matter.

• Marginal note:Temporary order

  (3) If, in the Minister's opinion, the length of time required for representations to be made might be prejudicial to the public interest, the Minister may make a temporary order that has the same effect as an order made under subsection (1).

• Marginal note:End of temporary order

  (4) A temporary order ceases to have effect on the earlier of

  • (a) the end of the 30-day period after the day on which it is made or of any shorter period that is specified in the temporary order, and

  • (b) the day on which an order is made under subsection (1).

Marginal note:National security order — revocation

• 61 (1) The Minister may, by order, direct a participating entity or third-party service provider whose accreditation is revoked under subsection 69(1), or any director, officer or agent or mandatary of the participating entity or third-party service provider, to take or refrain from taking any measures related to the activities that the participating entity or third-party service provider performed under this Act if the Minister is of the opinion that it is necessary to do so for reasons related to national security.

• Marginal note:Representations

  (2) Subject to subsection (3), the Minister must not make an order under subsection (1) unless the participating entity, third-party service provider, entity or individual in question is provided with an opportunity to make representations in respect of the matter.

• Marginal note:Temporary order

  (3) If, in the Minister's opinion, the length of time required for representations to be made might be prejudicial to the public interest, the Minister may make a temporary order that has the same effect as an order made under subsection (1).

• Marginal note:End of temporary order

  (4) A temporary order ceases to have effect on the earlier of

  • (a) the end of the 30-day period after the day on which it is made or of any shorter period that is specified in the temporary order, and

  • (b) the day on which an order is made under subsection (1).

Marginal note:Notice — Committee and Review Agency

62 The Minister must, within 30 days after the day on which an order is made under subsection 60(1) or (3) or 61(1) or (3), notify

• (a) the National Security and Intelligence Committee of Parliamentarians established by section 4 of the National Security and Intelligence Committee of Parliamentarians Act; and

• (b) the National Security and Intelligence Review Agency established under section 3 of the National Security and Intelligence Review Agency Act.

Marginal note:Copy to Bank

63 The Minister must provide a copy of each order made under subsection 60(1) or (3) or 61(1) or (3) to the Bank, which must then, as soon as feasible, provide a copy to the individual or entity in question.

Marginal note:Confidential information

• 64 (1) The Minister may specify that information about an undertaking required by an order made under section 55, terms and conditions imposed by an order made under section 56 or an order made under subsection 60(1) or (3) or 61(1) or (3), or information that could reveal the existence of the undertaking, terms and conditions or order, is confidential and must be treated accordingly.

• Marginal note:Prohibition

  (2) Despite anything in this Act, it is prohibited for any individual or entity to disclose any confidential information referred to in subsection (1) except for the purposes of subsection (3) or section 59 or 63 or in accordance with any conditions that the Minister may specify.

• Marginal note:Notice — Committee and Review Agency

  (3) If the Minister specifies under subsection (1) that information is confidential, the Minister must, within 30 days after the day on which the order in question is made under section 55 or 56 or subsection 60(1) or (3) or 61(1) or (3), notify

  • (a) the National Security and Intelligence Committee of Parliamentarians established by section 4 of the National Security and Intelligence Committee of Parliamentarians Act; and

  • (b) the National Security and Intelligence Review Agency established under section 3 of the National Security and Intelligence Review Agency Act.

Marginal note:Court enforcement

• 65 (1) If an individual or entity is not complying with an undertaking required by an order made under section 55, terms and conditions imposed by an order made under section 56 or an order made under subsection 60(1) or (3) or 61(1) or (3), the Minister may, in addition to any other action that may be taken under this Act, apply to a superior court for an order requiring the individual or entity to comply with the undertaking, terms and conditions or order.

• Marginal note:Powers of court

  (2) The court may make the order and any other order that it thinks fit.

• Marginal note:Appeal

  (3) An appeal from an order made under subsection (2) lies in the same manner and to the same court as an appeal from any other order of the court.

Suspension and Revocation

Marginal note:Notice of intent — directive to revoke

• 66 (1) The Minister may issue to the Bank a notice of the Minister's intent to issue a directive to the Bank to revoke a participating entity's or accredited third-party service provider's accreditation if

  • (a) there are reasons related to national security;

  • (b) the participating entity or accredited third-party service provider has failed to provide additional information in accordance with section 71;

  • (c) an order made under section 55, or an undertaking required under that section, that relates to the participating entity or accredited third-party service provider has not been complied with;

  • (d) a term or condition imposed under section 56 that relates to the participating entity or accredited third-party service provider has not been complied with;

  • (e) the participating entity or accredited third-party service provider has provided false or misleading information to the Bank, the Minister or a designated person or government authority; or

  • (f) the participating entity or accredited third-party service provider or a director, officer or agent or mandatary of the participating entity or accredited third-party service provider has not complied with an order made under subsection 60(1) or (3).

• Marginal note:Notice

  (2) The Bank must, as soon as feasible, notify in writing the participating entity or accredited third-party service provider in question of the notice of intent.

Marginal note:Review of notice of intent

• 67 (1) A participating entity or accredited third-party service provider that has been notified under subsection 66(2) may, within the period provided for in the regulations, request a review of the notice of intent by the Minister. The request must be submitted to the Bank, which must then, as soon as feasible, transmit it to the Minister.

• Marginal note:Temporary suspension

  (2) If, in the Minister's opinion, the length of time required for a review of the notice of intent might be prejudicial to the public interest, the Minister may issue a directive to the Bank to immediately suspend the participating entity's or accredited third-party service provider's accreditation while the review is being undertaken.

• Marginal note:Suspension and notice

  (3) The Bank must immediately suspend the participating entity's or accredited third-party service provider's accreditation if the Minister issues a directive to that effect under subsection (2). The Bank must then, as soon as feasible, notify the participating entity or accredited third-party service provider in writing that its accreditation has been suspended in accordance with a directive issued by the Minister.

• Marginal note:Reference to suspension in registry

  (4) The Bank must immediately include a reference to the suspension in the registry.

• Marginal note:Effect of suspension — participating entity

  (5) A participating entity that is notified that its accreditation has been suspended under subsection (3) must immediately cease all consumer-driven banking activities that it performs under this Act.

• Marginal note:Effect of suspension — accredited third-party service provider

  (6) An accredited third-party service provider that is notified that its accreditation has been suspended under subsection (3) must immediately cease all activities for which it is accredited.

• Marginal note:Decision

  (7) On completion of the review and after giving the participating entity or accredited third-party service provider an opportunity to make representations, the Minister must withdraw the notice of intent or issue a directive to the Bank to revoke the accreditation.

• Marginal note:Notice

  (8) If the Minister decides to withdraw the notice of intent, the Minister must notify the Bank, which must then immediately notify the participating entity or accredited third-party service provider in writing, end any suspension and remove any reference to the suspension from the registry.

Marginal note:Review not requested

68 If a participating entity or accredited third-party service provider that has been notified under subsection 66(2) does not request a review of the notice of intent within the period provided for in the regulations, the Minister must withdraw the notice of intent or issue a directive to the Bank to revoke the accreditation.

Marginal note:Revocation of accreditation

• 69 (1) The Bank must revoke a participating entity's or accredited third-party service provider's accreditation if the Minister issues a directive to that effect under subsection 67(7) or section 68.

• Marginal note:Notice of revocation

  (2) The Bank must, as soon as feasible, notify the participating entity or accredited third-party service provider in writing that its accreditation has been revoked in accordance with a directive issued by the Minister.

• Marginal note:Reference to revocation in registry

  (3) The Bank must, as soon as feasible, include a reference to the revocation in the registry.

• Marginal note:Duties of former participating entity

  (4) A participating entity whose accreditation has been revoked must, as soon as feasible after being notified of the revocation under subsection (2), comply with its duties under this Act and, in accordance with the regulations, notify in writing any consumers that used the services that it provided in accordance with this Act and provide those consumers with any other information that is provided for in the regulations.

• Marginal note:Duties of former accredited third-party service provider

  (5) A third-party service provider whose accreditation has been revoked must, as soon as feasible after being notified of the revocation under subsection (2), comply with its duties under this Act and, in accordance with the regulations, notify in writing any participating entities on whose behalf it was performing, at the time of the revocation, any of the activities for which it was accredited and provide those participating entities with any other information that is provided for in the regulations.

Marginal note:Notice — Committee and Review Agency

70 Within 30 days after the day on which the Minister issues a directive under subsection 67(2), the Minister must notify

• (a) the National Security and Intelligence Committee of Parliamentarians established by section 4 of the National Security and Intelligence Committee of Parliamentarians Act; and

• (b) the National Security and Intelligence Review Agency established under section 3 of the National Security and Intelligence Review Agency Act.

Marginal note:Additional information

• 71 (1) A participating entity or accredited third-party service provider must provide the Minister and any designated person or government authority with any additional information that the Minister or the designated person or government authority requests, for reasons related to national security, in relation to the participating entity or the activities that it performs under this Act or in relation to the accredited third-party service provider or the activities for which it is accredited.

• Marginal note:Manner

  (2) A request for information under subsection (1) must be submitted to the Bank, which must then, as soon as feasible, transmit it to the participating entity or accredited third-party service provider. The participating entity or accredited third-party service provider, as the case may be, must, within the period provided for in the regulations, provide the requested information to the Bank, which must then, as soon as feasible, provide it to the Minister and any designated person or government authority.

Marginal note:Notice to appropriate provincial authority

72 If the Bank gives notice under subsection 67(3) or (8) or 69(2) to a participating entity that is a provincial financial institution, the Bank must, as soon as feasible, notify the appropriate provincial authority that regulates or supervises the provincial financial institution.

General

Marginal note:Personal information

73 The Minister is not authorized to make a request or an order under section 54, 55, 56, 60, 61 or 71 requiring an individual, a participating entity, an accredited third-party service provider or any other entity to provide the Minister or any designated person or government authority with a consumer's personal information.

Marginal note:Decisions and orders final

74 Decisions and orders made by the Minister under this Act are final and binding and, except for judicial review under the Federal Courts Act, are not subject to appeal or to review by any court.

Marginal note:Advice and information to Minister

• 75 (1) The Bank must, at least once every year, provide the Minister with advice and information on matters relating to national security and the integrity or security of the financial system in Canada, as those matters relate to the Minister's exercise of powers or performance of duties and functions under this Act.

• Marginal note:Consultation — Superintendent of Financial Institutions

  (2) The Bank must consult the Superintendent of Financial Institutions before providing the Minister with advice or information that relates to a federal financial institution.

Duties of Participating Entities

Data Sharing

Marginal note:Sharing as directed by consumer

• 76 (1) Unless otherwise prohibited by law and subject to the regulations, a participating entity must share a consumer's data with other participating entities as directed by the consumer.

• Marginal note:Technical standard

  (2) A participating entity that shares a consumer's data must do so in compliance with the technical standard referred to in subsection 125(1).

• Marginal note:No condition

  (3) Subject to the regulations, a participating entity must not impose any conditions on another participating entity for the sharing of a consumer's data in accordance with this Act.

• Marginal note:Notice to Bank

  (4) Unless otherwise prohibited by law, a participating entity must notify the Bank, within the time and in the manner specified by the Bank, if the participating entity does not share a consumer's data as required by subsection (1).

Marginal note:No charge for sharing

77 A participating entity must not impose a charge for sharing a consumer's data in accordance with this Act, including for obtaining or renewing a consumer's consent or for withdrawing that consent.

Marginal note:Credit or refund

• 78 (1) If a participating entity imposes a charge on a consumer for sharing the consumer's data in accordance with this Act, the participating entity must credit the amount of the charge to the consumer or, if the amount was collected, refund it.

• Marginal note:Interest

  (2) The amount referred to in subsection (1) bears interest beginning on the day on which the charge is imposed, at a rate equal to the Bank's overnight rate on that day, and ending on the day on which the amount is refunded or credited.

Security

Marginal note:Security safeguards

• 79 (1) A participating entity must implement the security safeguards that are provided for in the regulations.

• Marginal note:Notice to Bank

  (2) A participating entity must notify the Bank, as soon as feasible and in the manner specified by the Bank, of any change that has a significant impact on the participating entity's compliance with the security safeguards.

Marginal note:Designated officer or employee

80 A participating entity must designate one of its officers or employees to be responsible for the security safeguards that it implements with respect to the sharing of consumer data in accordance with this Act.

Marginal note:Mitigating harm

81 A participating entity must establish policies and procedures to mitigate the harm to consumers that may result from a breach of the security safeguards that it implements with respect to the sharing of consumer data in accordance with this Act.

Marginal note:Report to Bank

• 82 (1) A participating entity must report to the Bank any breach of the security safeguards that it implements with respect to the sharing of consumer data in accordance with this Act if the breach involves consumer data that is under the participating entity's control.

• Marginal note:Report requirements

  (2) The report must contain the information that is provided for in the regulations and must be made, in the form and manner specified by the Bank, immediately after the participating entity determines that a breach of the security safeguards has occurred.

• Marginal note:Notice to consumer

  (3) Unless otherwise prohibited by law, a participating entity must notify a consumer of any breach of the security safeguards that involves the consumer's data that is under its control if it is reasonable in the circumstances to believe that the breach creates a real risk of significant harm to the consumer.

• Marginal note:Contents of notice

  (4) The notice must contain sufficient information to allow the consumer to understand the significance of the breach to them and to take steps, if any are possible, to reduce the risk of harm that could result from the breach or to mitigate that harm. The notice must contain any other information that is provided for in the regulations.

• Marginal note:Manner of notice

  (5) The notice must be conspicuous and must be given to the consumer in the manner provided for in the regulations.

• Marginal note:Timing of notice

  (6) The notice must be given as soon as feasible after the participating entity determines that the breach has occurred.

• Marginal note:Definition of significant harm

  (7) For the purposes of this section, significant harm includes bodily harm, humiliation, damage to reputation or relationships, loss of employment, of business or of professional opportunities, financial loss, identity theft, negative effects on the credit record and damage to or loss of property.

• Marginal note:Real risk of significant harm — factors

  (8) The factors that are relevant to determining whether a breach of security safeguards creates a real risk of significant harm to a consumer include

  • (a) the sensitivity of the consumer data involved;

  • (b) the probability that the consumer data has been, is being or will be misused; and

  • (c) any other factor provided for in the regulations.

Marginal note:Duty to investigate

83 A participating entity must investigate every breach of the security safeguards that it implements with respect to the sharing of consumer data in accordance with this Act, for the purposes of identifying any significant, recurring or systemic problems and remedying the problems identified. The participating entity must report the conclusions of every investigation to the Bank in accordance with the regulations.

Marginal note:Notice

84 If a participating entity identifies a significant, recurring or systemic problem that may have an impact on the consumer-driven banking system, the participating entity must, as soon as feasible, notify the Bank, which may then notify other participating entities.

Consent

Marginal note:Express consent required

• 85 (1) A participating entity must obtain a consumer's express consent before requesting that another participating entity provide it with the consumer's data.

• Marginal note:Use not consent

  (2) Use by the consumer of a product or service does not constitute express consent for the purposes of subsection (1).

• Marginal note:Oral consent — written confirmation

  (3) If the express consent is given orally, the participating entity must immediately confirm the consumer's express consent in writing.

• Marginal note:Information to consumer

  (4) The participating entity must provide a consumer with the following information before obtaining the consumer's express consent:

  • (a) a description of the data in respect of which it is seeking the consumer's express consent;

  • (b) a description of how it will use the data;

  • (c) the period during which the consumer's consent will be valid, which must not exceed the period referred to in section 86; and

  • (d) any other information that is provided for in the regulations.

• Marginal note:Clear, simple and not misleading

  (5) Any communication from a participating entity seeking to obtain a consumer's express consent to have the participating entity receive the consumer's data, including for the purposes of providing information under subsection (4), must be made in a manner, and using language, that is clear, simple and not misleading.

• Marginal note:Consent — use of data

  (6) Subject to the regulations, a participating entity must use the data of a consumer that it receives from another participating entity only for the uses described in the information that is provided to the consumer under paragraph (4)(b).

• Marginal note:Use of data — product or service

  (7) A participating entity must not require a consumer to consent to the sharing of the consumer's data beyond what is necessary for the participating entity to provide the consumer with a product or service.

• Marginal note:Record of consent

  (8) A participating entity must keep a record of each express consent obtained.

Marginal note:Duration of consent

86 A consumer's express consent may be valid for a period of not more than 12 months after the day on which a participating entity obtains it.

Marginal note:Renewal of consent

• 87 (1) A participating entity must renew a consumer's express consent within seven days after the day on which the period for which the consumer's consent was last obtained or renewed ends or within seven days after the day on which the participating entity becomes aware of any circumstance provided for in the regulations.

• Marginal note:Requirements

  (2) Subsections 85(2) to (8) apply to a renewal of express consent.

• Marginal note:Suspension of receipt of data

  (3) A participating entity that is required to renew a consumer's express consent under subsection (1) must immediately stop receiving the consumer's data until it has renewed the consumer's consent to do so.

• Marginal note:Notice to consumer

  (4) If the participating entity fails to renew the consumer's consent within the period referred to in subsection (1), it must, immediately after the end of the period,

  • (a) inform the consumer of the consequences of not renewing their consent;

  • (b) inform the consumer that they may request that the participating entity delete the data in respect of which consent was not renewed and of the manner in which that request may be made; and

  • (c) provide the consumer, in accordance with the regulations, with any information provided for in the regulations.

• Marginal note:Duty to delete data

  (5) Unless otherwise prohibited by law and subject to the regulations, the participating entity must, at the request of the consumer, delete the data in respect of which consent was not renewed.

Marginal note:Consent obtained by deception

88 A participating entity must not obtain or renew, or attempt to obtain or renew, a consumer's express consent by providing false or misleading information or using deceptive or misleading practices.

Marginal note:Undue pressure or coercion

89 A participating entity must not obtain or renew, or attempt to obtain or renew, a consumer's express consent by imposing undue pressure on the consumer or coercing them.

Marginal note:Withdrawal of consent

• 90 (1) A consumer may withdraw their consent, in whole or in part, by notifying the participating entity that obtained the consent.

• Marginal note:Information

  (2) If the consumer notifies the participating entity of their intention to withdraw their consent, the participating entity must immediately

  • (a) inform the consumer of the consequences of withdrawing their consent;

  • (b) inform the consumer that they may request that the participating entity delete the data in respect of which consent was withdrawn and of the manner in which that request may be made; and

  • (c) provide the consumer, in accordance with the regulations, with any information provided for in the regulations.

• Marginal note:Effect of withdrawal

  (3) If the consumer confirms that they withdraw their consent after receiving the information referred to in subsection (2), the participating entity must, immediately or at any later date that is specified by the consumer, stop receiving the data in respect of which consent was withdrawn and notify the participating entity that was providing the data of the withdrawal of consent.

• Marginal note:Duty to delete data

  (4) Unless otherwise prohibited by law and subject to the regulations, the participating entity must, at the request of the consumer, delete the data in respect of which consent was withdrawn.

Marginal note:Request to stop providing data

• 91 (1) A consumer may request that a participating entity stop providing their data, in whole or in part, to another participating entity.

• Marginal note:Duties

  (2) If a consumer requests that a participating entity stop providing their data, the participating entity must immediately

  • (a) stop providing the consumer's data in accordance with the request;

  • (b) inform the consumer that there might be consequences for stopping the provision of the data and that the consumer should contact the participating entity that was receiving the data; and

  • (c) inform the participating entity that was receiving the data that it has stopped providing the data at the consumer's request.

Consumer Authentication

Marginal note:Authentication requirements

• 92 (1) Before providing a consumer's data to another participating entity, a participating entity must confirm

  • (a) the consumer's authentication information;

  • (b) the period for which the consumer's express consent is valid; and

  • (c) the products and services in respect of which the data is to be provided.

• Marginal note:Prohibited conditions

  (2) A participating entity must not, as a condition of providing a consumer's data to another participating entity,

  • (a) require the consumer to consent to being provided with a product or service; or

  • (b) require the consumer to consent to the participating entity receiving their data from the other participating entity.

Marginal note:Renewal of consent

93 In the circumstances and within the period provided for in the regulations, a participating entity that is providing a consumer's data to another participating entity must request that the other participating entity renew the consumer's express consent in accordance with section 87.

Consumer Measures

Marginal note:Display of sign

94 A participating entity must, in the form specified by the Bank, prominently display a sign indicating that it is a participating entity

• (a) at each of the locations in Canada at which it offers services in accordance with this Act; and

• (b) on the home page of each of its websites and on each application through which it offers services in accordance with this Act.

Marginal note:Information in consumer dashboard

95 A participating entity must, in a single location on its website or application,

• (a) provide a consumer with up-to-date information about

  • (i) any other participating entities with which it is sharing the consumer's data,

  • (ii) the period for which the consumer's consent to the sharing of their data is valid, and

  • (iii) the data that is being shared;

• (b) provide the consumer with the option to renew their consent, if applicable; and

• (c) provide the consumer with the option to withdraw their consent or to request that their data stop being provided, as the case may be.

Marginal note:Clear, simple and not misleading

• 96 (1) A participating entity must provide consumers with information in a manner, and using language, that is clear, simple and not misleading.

• Marginal note:Principles of accessibility

  (2) A participating entity must take principles of accessibility into account when providing consumers with information.

• Marginal note:Policies and procedures

  (3) A participating entity must establish policies and procedures respecting the manner in which it provides consumers with information related to the activities that it performs under this Act.

• Marginal note:Review and evaluation

  (4) The Bank must, from time to time, review and evaluate the policies and procedures referred to in subsection (3) to ensure that the participating entity is complying with this section.

Marginal note:False or misleading information

97 A participating entity must not provide false or misleading information to consumers or the public respecting the activities that it performs under this Act.

Provision of Information

Marginal note:Notice of change

• 98 (1) A participating entity must notify the Bank of any change provided for in the regulations that relates to the participating entity or the activities that it performs under this Act.

• Marginal note:Timing of notice

  (2) The notice must be given as soon as feasible after the participating entity becomes aware of the change but before the change takes effect. However, if a different period is provided for in the regulations, the notice must be given within that period.

• Marginal note:Notice to Minister

  (3) The Bank must, as soon as feasible, notify the Minister and any designated person or government authority of any notice given under subsection (1).

Marginal note:Request for information

99 A participating entity must, within the time and in the manner specified by the Bank, provide the Bank with any information that the Bank requires for a purpose related to verifying compliance with this Act.

Marginal note:Annual reporting

100 Following the end of its financial year, a participating entity must, within the time and in the form and manner specified by the Bank, submit a report to the Bank that includes the information that is provided for in the regulations.

General

Marginal note:Policies and procedures — integrity or security

101 A participating entity must establish policies and procedures to protect itself against threats to its integrity or security, including foreign interference, and must adhere to those policies and procedures.

Marginal note:Duty to keep records

102 A participating entity must keep all records that are provided for in the regulations.

Liability

Marginal note:Consumer not liable

• 103 (1) Subject to the regulations, unless a consumer has demonstrated gross negligence or, in Quebec, gross fault, in safeguarding their authentication information, the consumer is not liable for any financial loss that arises directly from a loss of, unauthorized access to or unauthorized use of their data that occurs in relation to the sharing of data in accordance with this Act.

• Marginal note:Report

  (2) If a consumer reports to a participating entity that their authentication information has been lost or stolen or is otherwise at risk of being used in an unauthorized manner, the consumer is not liable for any financial loss that is incurred, after the participating entity receives the report, as a result of the unauthorized use of their authentication information in relation to the sharing of data in accordance with this Act, unless the participating entity demonstrates, on a balance of probabilities, that the consumer contributed to the unauthorized use.

• Marginal note:Authentication information

  (3) The unauthorized use of a consumer's authentication information in relation to the sharing of data in accordance with this Act does not by itself establish that the consumer demonstrated gross negligence or, in Quebec, gross fault, in safeguarding their authentication information.

Marginal note:Responsibility for safeguarding data

• 104 (1) A participating entity is responsible for safeguarding consumer data that is within its control in the course of the sharing of data between participating entities in accordance with this Act.

• Marginal note:Third-party service provider

  (2) Consumer data continues to be within the control of a participating entity even if the participating entity uses a third-party service provider or an affiliate entity to perform its activities under this Act.

• Marginal note:Liability to consumer

  (3) A participating entity is liable to a consumer for any financial loss that arises directly from a loss of, unauthorized access to or unauthorized use of the consumer's data that results from a breach of the participating entity's security safeguards that occurs in the course of the sharing of data in accordance with this Act.

• Marginal note:Third-party service provider

  (4) A participating entity remains liable to a consumer under subsection (3) even if it uses a third-party service provider or an affiliate entity to perform its activities under this Act.

Complaints Procedures

Internal Complaints Process

Marginal note:Procedures for dealing with complaints

• 105 (1) A participating entity must

  • (a) establish procedures that are satisfactory to the Bank for dealing with complaints;

  • (b) designate one of its officers or employees in Canada to be responsible for implementing those procedures; and

  • (c) designate one or more of its officers or employees in Canada to receive and deal with those complaints.

• Marginal note:Misleading terms

  (2) A participating entity must not use any misleading term with respect to its procedures or designated officers or employees, including any term that suggests that the procedures, officers or employees are independent of the participating entity — such as the term "ombudsperson" or any other term with a similar meaning — or any term that is provided for in the regulations.

• Marginal note:Copy to Bank

  (3) A participating entity must provide the Bank with a copy of its most recent procedures, within the time and in the manner specified by the Bank.

• Marginal note:Information to complainant

  (4) A participating entity must provide a person who makes a complaint with

  • (a) a written acknowledgment of the date on which it received the complaint;

  • (b) the information referred to in paragraphs 111(a) to (c); and

  • (c) any information that is necessary to enable the person to meet the requirements of the procedures referred to in paragraph 111(a).

Marginal note:Time for dealing with complaint

106 A participating entity must deal with a complaint within 56 days after the day on which it receives the complaint.

Marginal note:Duty to inform complainant

107 A participating entity must keep the person who made the complaint informed of the progress made in dealing with the complaint.

Marginal note:Record of complaint

108 A participating entity must, with respect to each complaint, make a record that is to be retained for at least five years and that contains

• (a) in the case of a complaint made in writing, the original version of the complaint;

• (b) in the case of a complaint made orally,

  • (i) the recording or a transcript of the recording, if the complaint was recorded, or

  • (ii) the details of the complaint, if the complaint was not recorded;

• (c) the name of the person who made the complaint;

• (d) the name of the consumer whose data the complaint relates to, if the consumer is not the person who made the complaint;

• (e) the contact information provided by the person who made the complaint;

• (f) the date on which the participating entity received the complaint;

• (g) a description of the nature of the complaint;

• (h) the date on which the complaint was resolved, if, in the participating entity's opinion, it was resolved to the satisfaction of the person who made the complaint;

• (i) a description of any actions that the participating entity took to attempt to resolve the complaint;

• (j) a description of any compensation provided to the person who made the complaint or to the consumer referred to in paragraph (d);

• (k) confirmation that the participating entity provided the person who made the complaint with the information referred to in paragraphs 111(a) to (c), if it did so; and

• (l) any other information provided for in the regulations.

Marginal note:Access to Bank

109 A participating entity must ensure that any record retained under section 108 is accessible to the Bank.

Marginal note:Annual information

110 Following the end of each financial year, a participating entity must, within the time and in the form and manner specified by the Bank, provide the Bank with the following information for that year:

• (a) the number and nature of any complaints that were dealt with by the officer or employee designated by the participating entity to deal with complaints who holds the most senior position identified for that purpose in the procedures established by the participating entity;

• (b) the average length of time taken to deal with the complaints received by that officer or employee;

• (c) the number of complaints that, in the participating entity's opinion, were resolved by that officer or employee to the satisfaction of the persons who made them; and

• (d) any other information that is provided for in the regulations.

Marginal note:Complaints procedures

111 A participating entity must disclose to its consumers and the public

• (a) its procedures for dealing with complaints established under paragraph 105(1)(a);

• (b) the name of the external complaints body and the manner in which that body may be contacted; and

• (c) the Bank's mailing address, website address and telephone number.

Marginal note:Disclosure — consumers and public

112 A participating entity must disclose information to its consumers and the public under section 111 by

• (a) displaying the information prominently

  • (i) at each of the locations in Canada at which it offers services in accordance with this Act, and

  • (ii) on each of its websites and applications through which it offers services in accordance with this Act; and

• (b) providing the information to any person who requests it, in a commonly used format that is acceptable to the person.

External Complaints Process

Marginal note:Purpose

113 The purpose of sections 114 to 118 is to enhance the process for dealing with complaints by establishing a regime composed of a sole external complaints body that performs its functions and activities in a transparent, effective, timely and fair manner based on the principles of accessibility, accountability, impartiality and independence.

Marginal note:Designation of corporation

• 114 (1) The Minister may, on the recommendation of the Bank, designate a corporation incorporated under the Canada Not-for-profit Corporations Act or under a provincial Act equivalent to that Act to be the external complaints body responsible for dealing with complaints referred to in paragraph 105(1)(a) that have not been resolved by its member participating entities to the satisfaction of the persons who made the complaints or that have not been dealt with within the period set out in section 106.

• Marginal note:Matters for consideration

  (2) Before designating a corporation, the Minister must take into account all factors that the Minister considers relevant, including whether the corporation has

  • (a) the reputation required under paragraph 115(a); and

  • (b) policies and procedures and terms of reference that would enable it to perform its functions and activities in a manner that is consistent with the purpose set out in section 113 and to comply with paragraphs 115(b) to (u).

• Marginal note:Obligation to be member

  (3) Every participating entity must be a member of the external complaints body.

• Marginal note:Not agent of His Majesty

  (4) The external complaints body is not an agent of His Majesty.

• Marginal note:Designation to be published

  (5) A designation made under subsection (1) must be published in the Canada Gazette.

Marginal note:Requirements

115 The external complaints body must

• (a) maintain a reputation for being operated in a manner that is consistent with the standards of good character and integrity;

• (b) make its services available across Canada in both official languages and offer those services free of charge to persons who make complaints;

• (c) establish policies, procedures and terms of reference that are satisfactory to the Bank with respect to, among other things, dealing with complaints and consulting, at least once a year, its member participating entities and consumers to allow them to raise concerns about the external complaints body;

• (d) establish the manner of calculating, to the satisfaction of the Bank, the fees it charges to each of its member participating entities for its services;

• (e) make information available to consumers about their rights and responsibilities in relation to the external complaints handling regime, respond to their inquiries and requests for information and offer them assistance in making complaints;

• (f) inform the parties to a complaint about the external complaints body's terms of reference and procedures for dealing with complaints and, on request, provide the parties with any additional information and assistance to enable them to understand the requirements of those terms of reference and procedures;

• (g) deal with complaints in a manner that affects only the parties to the complaints;

• (h) inform the Bank in writing within 30 days after the day on which the external complaints body determines that a complaint raises a potential systemic issue;

• (i) if it determines that all or part of a complaint is not within its terms of reference, provide the person who made the complaint with written reasons for that determination and the name of any entity to which the person may make a complaint, within 30 days after the day on which it receives the complaint;

• (j) obtain confirmation from the member participating entity to which each complaint relates regarding whether the period set out in section 106 has ended, unless the person who made the complaint has provided the external complaints body with the written acknowledgment referred to in paragraph 105(4)(a);

• (k) impartially deal with complaints referred to in paragraph 105(1)(a) that have not been resolved by its member participating entities to the satisfaction of the persons who made the complaints or that have not been dealt with within the period set out in section 106;

• (l) no later than 120 days after the day on which it has all of the information that it requires to deal with a complaint, make a final written recommendation to the parties;

• (m) immediately inform the Bank, in writing, of cases in which a member participating entity does not comply with a final recommendation;

• (n) within 90 days after making a final recommendation, make available on its website free of charge a summary of the final recommendation that includes

  • (i) a description of the nature of the complaint that is the subject of the final recommendation,

  • (ii) the name of the member participating entity that received the complaint,

  • (iii) a description of any compensation provided to the person who made the complaint or to the consumer referred to in paragraph 108(d),

  • (iv) the reasons for the final recommendation, and

  • (v) any other information that is provided for in the regulations;

• (o) within 60 days after the end of each quarter, submit to the Bank, in a form satisfactory to the Bank,

  • (i) in relation to all investigations completed during the quarter, a copy of the record of the complaint, and

  • (ii) any other information that is provided for in the regulations;

• (p) within 60 days after the end of each financial year, meet with the Bank to discuss, among other things, complaints, operations and market trends and issues respecting consumer-driven banking that have the potential to impact consumers;

• (q) within 135 days after the end of each financial year, file with the Bank a written report on the performance of its functions and activities in respect of consumer-driven banking for that year, which report is to include

  • (i) information about

    • (A) its constitution, governance and terms of reference and the identity of its member participating entities,

    • (B) all sources of funding for its functions and activities, including the fees charged to each of its member participating entities for its services and the manner in which those fees are calculated, and

    • (C) the results of the most recent evaluation referred to in paragraph (s),

  • (ii) a summary of the results of any consultation with its member participating entities and with persons who made complaints,

  • (iii) in respect of each of its member participating entities, the number and nature of complaints that it received, the number of complaints that it determined were within its terms of reference, the number of final recommendations that it made and the number of complaints that, in its opinion, were resolved to the satisfaction of the persons who made them,

  • (iv) the average length of time taken to deal with complaints,

  • (v) the number of complaints that it determined were not within its terms of reference and the reasons for that determination,

  • (vi) the number of complaints for which a member participating entity did not comply with a final recommendation,

  • (vii) the number of final recommendations in which compensation was recommended, and

  • (viii) the average and total compensation provided with respect to complaints that it determined were within its terms of reference;

• (r) immediately after the report referred to in paragraph (q) is filed with the Bank, make that report available on its website free of charge and provide any person who requests it with a copy;

• (s) submit, every five years, to an evaluation of the performance of its functions and activities in respect of consumer-driven banking that is conducted, at the discretion of the Bank, by the Bank or a third party in accordance with terms of reference that the external complaints body establishes in consultation with the Bank;

• (t) accept as a member any participating entity that makes a request to it for membership, other than a participating entity that is exempted or is a member of a class that is exempted under subsection 119(1); and

• (u) meet any other requirements that are provided for in the regulations.

Marginal note:Provision of information — external complaints body

116 A participating entity must provide the external complaints body with all information in its possession or control that relates to a complaint immediately after the external complaints body notifies it that the complaint has been received.

Marginal note:Clear, simple and not misleading

117 If a participating entity or the external complaints body is required under sections 105 to 116 to provide information, it must do so in a manner, and using language, that is clear, simple and not misleading.

Marginal note:Request for information

118 The external complaints body must, within the time and in the manner specified by the Bank, provide the Bank with any information that the Bank requires for a purpose related to verifying compliance with this Act.

Exemption

Marginal note:Minister's order

• 119 (1) If the Minister is of the opinion that a participating entity is a member of or is otherwise supervised by — or that the members of a class of participating entities are members of or are otherwise supervised by — a body that exercises powers and performs duties and functions that are substantially similar to those that are conferred on the external complaints body under this Act, the Minister may, by order, exempt the participating entity or the class of participating entities from the application of subsection 114(3).

• Marginal note:Effect of order

  (2) A participating entity that is exempted or is a member of a class that is exempted under subsection (1) must not be a member of the external complaints body for the purposes of this Act and the provisions of this Act respecting the external complaints body do not apply in respect of the participating entity or class.

Duties of Accredited Third-Party Service Providers

Marginal note:Notice of change

• 120 (1) An accredited third-party service provider must notify the Bank of any change provided for in the regulations that relates to the accredited third-party service provider or the activities for which it is accredited.

• Marginal note:Timing of notice

  (2) The notice must be given as soon as feasible after the accredited third-party service provider becomes aware of the change but before the change takes effect. However, if a different period is provided for in the regulations, the notice must be given within that period.

• Marginal note:Notice to Minister

  (3) The Bank must, as soon as feasible, notify the Minister and any designated person or government authority of any notice given under subsection (1).

Marginal note:Request for information

121 An accredited third-party service provider must, within the time and in the manner specified by the Bank, provide the Bank with any information that the Bank requires for a purpose related to verifying compliance with this Act.

Marginal note:Duty to keep records

122 An accredited third-party service provider must keep all records that are provided for in the regulations.

Disclosure Protection

Marginal note:Disclosure — employee of participating entity

• 123 (1) An employee of a participating entity who has reasonable grounds to believe that the participating entity or any individual or other entity has committed or intends to commit a wrongdoing may report the particulars of the matter to the Bank, a government authority, a regulatory body or a law enforcement agency.

• Marginal note:Disclosure — employee of technical standards body

  (2) An employee of the technical standards body who has reasonable grounds to believe that the technical standards body or any individual or other entity has committed or intends to commit a wrongdoing may report the particulars of the matter to the Bank, a government authority, a regulatory body or a law enforcement agency.

• Marginal note:Confidentiality

  (3) The Bank, government authority, regulatory body or law enforcement agency must keep confidential the identity of the employee and any information that could reasonably be expected to reveal their identity.

• Marginal note:Exception — investigation

  (4) Despite subsection (3), the Bank, government authority, regulatory body or law enforcement agency may disclose to one another the employee's identity and information that could reasonably be expected to reveal the employee's identity for purposes related to an investigation.

• Marginal note:Notice

  (5) If the Bank, government authority, regulatory body or law enforcement agency discloses the identity of the employee or information under subsection (4), they must make every reasonable effort to inform the employee of the disclosure.

• Marginal note:Definition of wrongdoing

  (6) In this section, wrongdoing means a contravention of this Act or the regulations and, with respect to a participating entity, a contravention of a policy or procedure established by the participating entity in relation to its compliance with this Act.

Designation — Provincial Authority

Marginal note:Designation

• 124 (1) At the request of a provincial minister who has responsibilities that are similar to those of the Minister, the Minister may, by order, designate a department or agency of a province to, in the place of the Bank, supervise a participating entity that is a provincial financial institution or a class of participating entities that are provincial financial institutions for the purposes of any of sections 79 to 93, 95 to 97 and 103 to 112.

• Marginal note:Provisions and participating entities

  (2) In the order, the Minister must specify the provisions, from among those referred to in subsection (1), to which the designation relates and the participating entity or class of participating entities in respect of which it applies.

• Marginal note:Agreement or arrangement

  (3) The Minister may only make an order if the Bank has entered into an agreement or arrangement with the department or agency of a province respecting the sharing of information and the supervision of participating entities.

• Marginal note:Revocation

  (4) The Minister may revoke an order made under subsection (1) and must do so at the request of the provincial minister referred to in that subsection.

Technical Standard

Marginal note:Designation of body

• 125 (1) The Minister may, by order, designate a body to be the technical standards body that is responsible for establishing the technical standard that is to be used for the sharing of data by participating entities in accordance with this Act.

• Marginal note:Factors

  (2) In designating the technical standards body, the Minister must take into account the following factors:

  • (a) the need to ensure the safe, secure and efficient sharing of data among participating entities;

  • (b) fairness, accessibility, transparency and good governance;

  • (c) whether the body is incorporated, formed or otherwise organized in Canada;

  • (d) the independence of the body in exercising its powers and performing its duties and functions;

  • (e) the body's ability to exercise its powers and perform its duties and functions in a manner that is consistent with the purposes of this Act;

  • (f) any other factor that the Minister considers relevant; and

  • (g) any other factor provided for in the regulations.

• Marginal note:Publication in Canada Gazette

  (3) The Minister must publish the order in the Canada Gazette.

Marginal note:Review

126 The Minister must review the designation every three years.

Marginal note:Revocation

• 127 (1) The Minister may, by order, revoke the designation, including in the following circumstances:

  • (a) the Bank advises the Minister to do so;

  • (b) the Minister is of the opinion that the designation is no longer consistent with any factor referred to in subsection 125(2);

  • (c) the Minister is of the opinion that the designation poses a risk to national security; or

  • (d) the Minister is of the opinion that the designation poses a risk to the integrity or security of the financial system in Canada.

• Marginal note:Publication in Canada Gazette

  (2) The Minister must publish the order in the Canada Gazette.

Marginal note:Annual report

128 The technical standards body must submit an annual report to the Bank in accordance with the regulations.

Marginal note:Change that has significant impact

129 The technical standards body must notify the Bank of any change that has a significant impact on the technical standards body or the technical standards, including any change to the operation of the technical standard referred to in subsection 125(1) or the governance, composition or decision making of the technical standards body, as soon as feasible but no later than the seventh day after the day on which the change takes effect.

Marginal note:Request for information

130 The technical standards body must, within the time and in the manner specified by the Bank, provide the Bank with any information that the Bank requires for a purpose related to verifying compliance with this Act.

Confidentiality of Information

Marginal note:Information obtained by Bank

• 131 (1) Subject to subsections (2) and (3), information that is obtained under this Act by the Bank, and any information prepared from that information, is confidential and must be treated accordingly.

• Marginal note:Disclosure permitted

  (2) The Bank may disclose information that is obtained under this Act if it is required to make the information public under subsection 7(1) or section 44 or if it does so under subsection 7(2) or section 168.

• Marginal note:Disclosure permitted — government authority or regulatory body

  (3) The Bank may disclose information that is obtained under this Act to the Minister or to any government authority or regulatory body that agrees to treat the information as confidential.

Marginal note:Information obtained by Minister

• 132 (1) Subject to subsection (2), information that is obtained under this Act by the Minister or by a designated person or government authority, and any information prepared from that information, is confidential and must be treated accordingly.

• Marginal note:Disclosure permitted

  (2) The Minister or the designated person or government authority may disclose information that is obtained under this Act to a government authority or regulatory body that agrees to treat the information as confidential.

Marginal note:Evidentiary privilege

• 133 (1) Information provided for in the regulations that relates to the supervision of participating entities or accredited third-party service providers under this Act must not be used as evidence in any civil proceedings and is privileged for that purpose.

• Marginal note:No testimony or production

  (2) An individual or entity must not by an order of any court, tribunal or other body be required in any civil proceedings to give oral testimony or to produce any document relating to any information referred to in subsection (1).

• Marginal note:Exception to subsection (1)

  (3) Despite subsection (1), the Minister, the Governor, the Bank or the Attorney General of Canada may, in accordance with the regulations, use information referred to in that subsection as evidence in any proceedings.

• Marginal note:Exception to subsection (1)

  (4) Despite subsection (1), a participating entity or accredited third-party service provider may, in accordance with the regulations, use information referred to in that subsection as evidence in any proceedings in relation to the administration or enforcement of this Act, the Bankruptcy and Insolvency Act or the Companies' Creditors Arrangement Act that are commenced by the participating entity, the accredited third-party service provider, the Minister, the Governor, the Bank or the Attorney General of Canada.

• Marginal note:Exceptions to subsections (1) and (2)

  (5) Despite subsections (1) and (2), a court, tribunal or other body may, by order, require the Minister, the Governor, the Bank, a participating entity or an accredited third-party service provider to give oral testimony or produce any document relating to any information referred to in subsection (1) in any civil proceedings in relation to the administration or enforcement of this Act that are commenced by the Minister, the Governor, the Bank, the Attorney General of Canada, a participating entity or an accredited third-party service provider.

• Marginal note:No waiver

  (6) The disclosure of any information referred to in subsection (1), other than under subsection (3), (4) or (5), does not constitute a waiver of the privilege referred to in subsection (1).

Advisory and Other Committees

Marginal note:Advisory and other committees

• 134 (1) The Bank may establish advisory and other committees to advise or assist the Bank on matters relating to consumer-driven banking and may provide for their membership, duties, functions and operation.

• Marginal note:Remuneration and expenses

  (2) Members of a committee may be paid for their services the remuneration and expenses that the Bank may determine.

Marginal note:Advisory committee

• 135 (1) There is established an advisory committee to provide advice to the Minister and the Bank on matters relating to consumer-driven banking. The advisory committee consists of

  • (a) one representative appointed by the Minister;

  • (b) one or two representatives designated by each province; and

  • (c) one representative designated by the Bank.

• Marginal note:Co-chairperson — Minister

  (2) The representative appointed by the Minister is a co-chairperson of the advisory committee.

• Marginal note:Co-chairperson — provincial representative

  (3) The other co-chairperson is to be chosen, from among the members who are designated by the provinces, by those members to hold office for a one-year term. That co-chairperson is not authorized to hold that office for consecutive terms.

• Marginal note:Co-chairperson absent or unable to act

  (4) If the co-chairperson chosen under subsection (3) is absent or unable to act, the members who are designated by the provinces may choose another one of those members to act as co-chairperson.

• Marginal note:Annual report

  (5) The advisory committee must report, at least once every calendar year, to the Minister and the relevant provincial ministers who have responsibilities that are similar to those of the Minister.

No Liability

Marginal note:No liability — Bank

136 No action lies against His Majesty, any officer, employee or director of the Bank or any person acting under the direction of the Governor for anything done or omitted to be done in good faith in the administration or discharge of any powers, duties or functions that under this Act are intended or authorized to be exercised or performed.

Marginal note:No liability — Minister

137 No action lies against His Majesty, the Minister, any designated person or government authority or any person acting under the direction of the Minister for anything done or omitted to be done in good faith in the administration or discharge of any powers, duties or functions that under this Act are intended or authorized to be exercised or performed.

Not Compellable

Marginal note:Not compellable — Bank

138 An officer, employee or director of the Bank or any person acting under the instructions of the Governor is not a compellable witness in any civil proceedings in respect of any matter coming to their knowledge as a result of exercising any of their powers or performing any of their duties or functions under this Act.

Marginal note:Not compellable — Minister

139 The Minister, a designated person or government authority or any person acting under the instructions of the Minister or the designated person or government authority is not a compellable witness in any civil proceedings in respect of any matter coming to their knowledge as a result of exercising any of their powers or performing any of their duties or functions under this Act.

Assessment of Fees

Marginal note:Bank to ascertain expenses

• 140 (1) The Bank must, before September 30 of each year, ascertain the total amount of expenses incurred by it during the immediately preceding calendar year for or in connection with the administration of this Act and deduct from that amount any accreditation fees paid to it in that preceding calendar year.

• Marginal note:Amount conclusive

  (2) The amount ascertained is final and conclusive for the purposes of this section.

• Marginal note:Assessment

  (3) As soon as feasible after ascertaining the amount, the Bank must, in the manner and to the extent provided for in the regulations, assess a portion of the total amount of expenses against each participating entity, each accredited third-party service provider and the external complaints body, in accordance with the regulations.

• Marginal note:Interim assessment

  (4) The Bank may, during each calendar year, prepare an interim assessment against any participating entity, any accredited third-party service provider or the external complaints body.

• Marginal note:Assessment binding

  (5) Every assessment and interim assessment is final and conclusive and binding on the participating entity or accredited third-party service provider against which it is made or the external complaints body.

• Marginal note:Recovery

  (6) Every assessment and interim assessment constitutes a debt due to the Bank, is immediately payable and may be recovered as a debt in any court of competent jurisdiction.

• Marginal note:Interest

  (7) Interest may be charged on the unpaid amount of an assessment or interim assessment at a rate equal to the rate prescribed under the Income Tax Act for amounts payable by the Minister of National Revenue as refunds of overpayments of tax under that Act in effect from time to time plus 2%.

Marginal note:Request for information

• 141 (1) The Bank may request in writing that a participating entity, an accredited third-party service provider or the external complaints body provide the Bank, within the period provided for in the regulations, with any information that the Bank considers necessary for the purposes of subsection 140(3) or (4).

• Marginal note:Compliance with request

  (2) The participating entity, accredited third-party service provider or external complaints body must comply with the request.

Administration and Enforcement

Bank's Powers

Marginal note:Request for information

• 142 (1) The Bank may request in writing that an individual or entity, within the time and in the manner specified by the Bank, provide the Bank with any information that the Bank considers necessary for a purpose related to verifying compliance with an undertaking required under section 55 or terms and conditions imposed under section 56.

• Marginal note:Compliance with request

  (2) The individual or entity must comply with the request.

Marginal note:Examination and inquiry

• 143 (1) The Bank must, from time to time, make or cause to be made any examination and inquiry that the Bank considers necessary for the purposes of satisfying the Bank that participating entities, accredited third-party service providers, the external complaints body and the technical standards body are complying with this Act and, after the conclusion of each examination and inquiry, must report on it to the Minister.

• Marginal note:Access to records

  (2) For the purposes of this section, the Bank

  • (a) has a right of access to any records of a participating entity, an accredited third-party service provider, the external complaints body or the technical standards body; and

  • (b) may require the directors or officers of a participating entity, an accredited third-party service provider, the external complaints body or the technical standards body to provide information and explanations, to the extent that they are reasonably able to do so, in respect of any matter subject to examination or inquiry under this section.

• Marginal note:Special audit

  (3) The Bank may direct that a special audit of a participating entity, an accredited third-party service provider, the external complaints body or the technical standards body be conducted, in accordance with any conditions that the Bank considers appropriate, if the Bank is of the opinion that the special audit is necessary for a purpose related to verifying compliance with this Act. The Bank may appoint an individual or entity to conduct the special audit.

• Marginal note:Duty to assist

  (4) The participating entity, accredited third-party service provider, external complaints body or technical standards body must give all assistance that is reasonably required to enable the appointed individual or entity to conduct the special audit and must provide any documents or information, and access to any data, that are specified by the individual or entity.

• Marginal note:Report to Bank

  (5) If a participating entity, an accredited third-party service provider, the external complaints body or the technical standards body is the subject of a special audit, it must provide the Bank with the results of the audit.

• Marginal note:Expenses payable

  (6) The expenses incurred in respect of any special audit are payable by the participating entity, accredited third-party service provider, external complaints body or technical standards body that is the subject of the audit.

• Marginal note:Notice to appropriate provincial authority

  (7) If the Bank makes or causes to be made any examination, inquiry or audit in respect of a participating entity that is a provincial financial institution, the Bank must, as soon as feasible, notify the appropriate provincial authority that regulates or supervises the provincial financial institution.

Marginal note:Designation

144 The Governor may designate persons or classes of persons as authorized persons for the purposes of sections 145 and 146.

Marginal note:Powers — authorized person

• 145 (1) An authorized person may, from time to time, examine the records and inquire into the business and affairs of a participating entity for the purpose of verifying compliance with this Act and for that purpose may

  • (a) enter any place in which the authorized person has reasonable grounds to believe that there are records relevant to verifying compliance with this Act;

  • (b) use any computer system in the place, or cause it to be used, to examine data contained in or available to it;

  • (c) reproduce any record or cause any record to be reproduced from the data, in the form of a printout or other intelligible output and remove the printout or other output for examination or copying; or

  • (d) use any copying equipment in the place or cause it to be used.

• Marginal note:Duty to assist

  (2) The owner or person in charge of the place and every person in the place must give all assistance that is reasonably required to enable the authorized person to perform their functions under this section and must provide any documents or information, and access to any data, that are specified by the authorized person.

Marginal note:Warrant to enter dwelling-house

• 146 (1) If the place is a dwelling-house, an authorized person may enter it without the occupant's consent only under the authority of a warrant issued under subsection (2).

• Marginal note:Authority to issue warrant

  (2) On ex parte application, a justice of the peace may issue a warrant authorizing an authorized person to enter a dwelling-house, subject to any conditions specified in the warrant, if the justice is satisfied by information on oath that

  • (a) the dwelling-house is a place referred to in paragraph 145(1)(a);

  • (b) entry to the dwelling-house is necessary for a purpose related to verifying compliance with this Act; and

  • (c) entry was refused by the occupant or there are reasonable grounds to believe that entry will be refused by, or that consent to entry cannot be obtained from, the occupant.

Marginal note:Compliance agreement

147 The Bank may enter into a compliance agreement with a participating entity, an accredited third-party service provider, the external complaints body or the technical standards body for the purpose of implementing any measure that is designed to further its compliance with this Act.

Marginal note:Directions — participating entity

• 148 (1) If, in the Bank's opinion, a participating entity, or another entity or individual in conducting the business or affairs of the participating entity, fails to comply — or there are reasonable grounds to believe that the participating entity or the entity or individual will fail to comply — with a compliance agreement, the Bank may direct the participating entity or the entity or individual to comply with the compliance agreement and to take any measures that in the Bank's opinion are necessary to do so.

• Marginal note:Directions — policies and procedures

  (2) If, in the Bank's opinion, a participating entity does not have adequate policies and procedures to protect itself against threats to its integrity or security or a participating entity is not adhering to its policies and procedures in that matter, the Bank may direct the participating entity to take any measures that in the Bank's opinion are necessary to remedy the situation.

• Marginal note:Directions — accredited third-party service provider

  (3) If, in the Bank's opinion, an accredited third-party service provider, or another entity or individual in conducting the business or affairs of the accredited third-party service provider, fails to comply — or there are reasonable grounds to believe that the accredited third-party service provider or the entity or individual will fail to comply — with a compliance agreement, the Bank may direct the accredited third-party service provider or the entity or individual to comply with the compliance agreement and to take any measures that in the Bank's opinion are necessary to do so.

• Marginal note:Directions — external complaints body

  (4) If, in the Bank's opinion, the external complaints body fails, or there are reasonable grounds to believe that it will fail, to comply with a compliance agreement or any of paragraphs 115(b) to (u) or to perform its functions and activities in a manner that is consistent with the purpose set out in section 113, the Bank may direct the external complaints body to comply, to so perform its functions and activities and to take any measures that in the Bank's opinion are necessary to do so.

• Marginal note:Directions — technical standards body

  (5) If, in the Bank's opinion, the technical standards body fails to comply, or there are reasonable grounds to believe that it will fail to comply, with a compliance agreement, the Bank may direct the technical standards body to comply and to take any measures that in the Bank's opinion are necessary to do so.

• Marginal note:Representations

  (6) Subject to subsection (7), the Bank must not make a direction under any of subsections (1) to (5) unless the participating entity, accredited third-party service provider, entity or individual in question or the external complaints body or technical standards body is provided with an opportunity to make representations in respect of the matter.

• Marginal note:Temporary direction

  (7) If, in the Bank's opinion, the length of time required for representations might be prejudicial to the public interest, the Bank may make a temporary direction with respect to the matters referred to in any of subsections (1) to (5) that has effect for a period of not more than 15 days.

• Marginal note:Continued effect

  (8) A temporary direction continues to have effect after the end of the 15-day period if no representations are made to the Bank within that period or, if representations have been made, the Bank notifies the participating entity, accredited third-party service provider, entity or individual, external complaints body or technical standards body that the Bank is not satisfied that there are sufficient grounds for revoking the direction.

Marginal note:Court enforcement — participating entity

• 149 (1) If a participating entity, or another entity or individual in conducting the business or affairs of the participating entity, fails to comply with a compliance agreement or a direction made under section 148, contravenes a provision of this Act or the regulations or omits to do any thing that is required to be done under this Act, the Bank may, in addition to any other action that may be taken under this Act, apply to a court for an order requiring the participating entity, entity or individual to comply with the compliance agreement or the direction, cease the contravention or do any thing that is required to be done. The court may make the order and any other order that it thinks fit.

• Marginal note:Court enforcement — accredited third-party service provider

  (2) If an accredited third-party service provider, or another entity or individual in conducting the business or affairs of the accredited third-party service provider, fails to comply with a compliance agreement or a direction made under section 148, contravenes a provision of this Act or the regulations or omits to do any thing that is required to be done under this Act, the Bank may, in addition to any other action that may be taken under this Act, apply to a court for an order requiring the accredited third-party service provider, entity or individual to comply with the compliance agreement or the direction, cease the contravention or do any thing that is required to be done. The court may make the order and any other order that it thinks fit.

• Marginal note:Court enforcement — external complaints body

  (3) If the external complaints body fails to comply with a compliance agreement, any of paragraphs 115(b) to (u) or a direction made under section 148, the Bank may, in addition to any other action that may be taken under this Act, apply to a court for an order requiring the external complaints body to comply with the compliance agreement, the paragraph or the direction. The court may make the order and any other order that it thinks fit.

• Marginal note:Court enforcement — technical standards body

  (4) If the technical standards body fails to comply with a compliance agreement or a direction made under section 148, the Bank may, in addition to any other action that may be taken under this Act, apply to a court for an order requiring the technical standards body to comply with the compliance agreement or the direction. The court may make the order and any other order that it thinks fit.

• Marginal note:Appeal

  (5) An appeal from a decision of a court under this section lies in the same manner and to the same court as an appeal from any other order of the court.

Marginal note:Notice to Minister

150 If, in the Bank's opinion, an individual or entity fails to comply, or there are reasonable grounds to believe that an individual or entity will fail to comply, with an undertaking required under section 55, terms and conditions imposed under section 56 or an order made under subsection 60(1) or (3), the Bank must immediately notify the Minister.

Minister's Powers

Marginal note:Designation

151 The Minister may designate persons or classes of persons as authorized persons for the purposes of sections 152 to 154.

Marginal note:Request for information

• 152 (1) An authorized person may request in writing that an individual or entity, within the time and in the manner specified by the authorized person, provide the authorized person with any information that the authorized person considers necessary for a purpose related to verifying compliance with an undertaking required under section 55, terms and conditions imposed under section 56 or an order made under subsection 60(1) or (3).

• Marginal note:Compliance with request

  (2) The individual or entity must comply with the request.

Marginal note:Powers — authorized person

• 153 (1) An authorized person may, from time to time, examine the records and inquire into the business and affairs of an individual or entity for the purpose of verifying compliance with an undertaking required under section 55, terms and conditions imposed under section 56 or an order made under subsection 60(1) or (3) and for that purpose may

  • (a) enter any place in which the authorized person has reasonable grounds to believe that there are records relevant to verifying compliance with the undertaking, terms and conditions or order;

  • (b) use any computer system in the place, or cause it to be used, to examine data contained in or available to it;

  • (c) reproduce any record or cause any record to be reproduced from the data, in the form of a printout or other intelligible output and remove the printout or other output for examination or copying; or

  • (d) use any copying equipment in the place or cause it to be used.

• Marginal note:Duty to assist

  (2) The owner or person in charge of the place and every person in the place must give all assistance that is reasonably required to enable the authorized person to perform their functions under this section and must provide any documents or information, and access to any data, that are specified by the authorized person.

Marginal note:Warrant to enter dwelling-house

• 154 (1) If the place is a dwelling-house, an authorized person may enter it without the occupant's consent only under the authority of a warrant issued under subsection (2).

• Marginal note:Authority to issue warrant

  (2) On ex parte application, a justice of the peace may issue a warrant authorizing an authorized person to enter a dwelling-house, subject to any conditions specified in the warrant, if the justice is satisfied by information on oath that

  • (a) the dwelling-house is a place referred to in paragraph 153(1)(a);

  • (b) entry to the dwelling-house is necessary for a purpose related to verifying compliance with an undertaking required under section 55, terms and conditions imposed under section 56 or an order made under subsection 60(1) or (3); and

  • (c) entry was refused by the occupant or there are reasonable grounds to believe that entry will be refused by, or that consent to entry cannot be obtained from, the occupant.

Administrative Monetary Penalties

Violations

Marginal note:Regulations

• 155 (1) The Governor in Council may make regulations

  • (a) designating as a violation the contravention of a specified provision of this Act or of the regulations or the non-compliance with orders made, undertakings required, compliance agreements entered into or directions made under this Act;

  • (b) establishing, having regard to subsection (2), a penalty or a range of penalties in respect of a violation;

  • (c) respecting the service of documents under sections 156 to 168, including the manner and proof of service and the circumstances under which documents are considered to be served;

  • (d) providing for the circumstances in which the Bank must not make public, under subsection 168(1), the name of the individual or entity that committed the violation; and

  • (e) generally, for carrying out the purposes and provisions of this section and sections 156 to 168.

• Marginal note:Maximum penalties

  (2) The maximum penalty for a violation is $1,000,000 if the violation is committed by an individual and $10,000,000 if the violation is committed by a participating entity or accredited third-party service provider.

Marginal note:Criteria for penalty

156 Except if a penalty is fixed under paragraph 155(1)(b), the amount of a penalty must, in each case, be determined taking into account

• (a) the degree of intention or negligence on the part of the individual or entity that committed the violation;

• (b) the harm done by the violation;

• (c) the duration of the violation;

• (d) the ability of the individual or entity that committed the violation to pay the penalty;

• (e) the history of the individual or entity that committed the violation with respect to any prior violation or conviction under this Act within the five-year period immediately before the violation; and

• (f) any other criteria that may be provided for in the regulations.

Marginal note:Purpose of penalty

157 The purpose of a penalty is to promote compliance with this Act and not to punish.

Marginal note:Violation or offence

158 If a contravention or non-compliance that is designated under paragraph 155(1)(a) can be proceeded with either as a violation or as an offence, proceeding in one manner precludes proceeding in the other.

Proceedings

Marginal note:Commission of violation

• 159 (1) Every contravention or non-compliance that is designated under paragraph 155(1)(a) constitutes a violation and the individual or entity that commits the violation is liable to a penalty determined in accordance with sections 155 and 156.

• Marginal note:Notice of violation

  (2) If the Bank believes on reasonable grounds that an individual or entity has committed a violation, the Bank may issue a notice of violation and, in that case, must cause it to be served on the individual or entity.

• Marginal note:Contents of notice

  (3) A notice of violation must name the individual or entity believed to have committed a violation, identify the violation and set out

  • (a) the penalty that the Bank proposes to impose;

  • (b) the right of the individual or entity, within 30 days after the day on which the notice is served or within any longer period that the Bank specifies, to pay the penalty or to make representations to the Governor with respect to the violation and the proposed penalty, and the manner for doing so; and

  • (c) the fact that, if the individual or entity does not pay the penalty or make representations in accordance with the notice, the individual or entity will be deemed to have committed the violation and the Bank may impose a penalty in respect of it.

Determination of Responsibility and Penalty

Marginal note:Payment

• 160 (1) If the individual or entity pays the penalty proposed in the notice of violation, the individual or entity is deemed to have committed the violation and proceedings in respect of it are ended.

• Marginal note:Representations to Governor

  (2) If the individual or entity makes representations in accordance with the notice, the Governor must decide, on a balance of probabilities, whether the individual or entity committed the violation and, if so, may, subject to any regulations made under paragraph 155(1)(b), impose the penalty proposed in the notice, a lesser penalty or no penalty.

• Marginal note:Failure to pay or make representations

  (3) An individual or entity that neither pays the penalty nor makes representations in accordance with the notice is deemed to have committed the violation and the Bank may, subject to any regulations made under paragraph 155(1)(b), impose the penalty proposed in the notice, a lesser penalty or no penalty.

• Marginal note:Notice — decision and right of appeal

  (4) The Bank must cause notice of any decision made under subsection (2) or (3) to be issued and served on the individual or entity together with notice of the right of appeal under section 161.

Appeal to Federal Court

Marginal note:Right of appeal

• 161 (1) An individual or entity on which a notice under subsection 160(4) is served may, within 30 days after the day on which the notice is served or within any longer period that the Court allows, appeal the decision to the Federal Court.

• Marginal note:Court to take precautions against disclosing

  (2) In an appeal, the Federal Court must take every reasonable precaution, including, if appropriate, conducting hearings in private, to avoid the disclosure by the Court or any person of confidential information referred to in section 131.

• Marginal note:Powers of Court

  (3) On an appeal, the Federal Court may confirm, set aside or, subject to any regulations made under paragraph 155(1)(b), vary the decision.

Enforcement

Marginal note:Debts to His Majesty

• 162 (1) A penalty constitutes a debt due to His Majesty in right of Canada that may be recovered in the Federal Court.

• Marginal note:Limitation period or prescription

  (2) No proceedings to recover a debt referred to in subsection (1) may be commenced later than five years after the day on which the debt becomes payable.

• Marginal note:Receiver General

  (3) A debt referred to in subsection (1) is payable to and must be remitted to the Receiver General.

Marginal note:Certificate of default

• 163 (1) The unpaid amount of any debt referred to in subsection 162(1) may be certified by the Governor.

• Marginal note:Registration in Federal Court

  (2) Registration in the Federal Court of a certificate has the same effect as a judgment of that Court for a debt of the amount specified in the certificate and all related registration costs.

Rules About Violations

Marginal note:Violations not offences

164 For greater certainty, a violation is not an offence and, accordingly, section 126 of the Criminal Code does not apply in respect of a violation.

Marginal note:Due diligence available

• 165 (1) Due diligence is a defence in a proceeding in relation to a violation.

• Marginal note:Common law principles

  (2) Every rule and principle of the common law that makes any circumstance a justification or excuse in relation to a charge for an offence applies in respect of a violation to the extent that it is not inconsistent with this Act.

General Provisions

Marginal note:Admissibility

166 In a proceeding in respect of a violation or a prosecution for an offence, a notice purporting to be issued under subsection 159(2) or 160(4) or a certificate purporting to be made under subsection 163(1) is admissible in evidence without proof of the signature or official character of the person appearing to have signed it.

Marginal note:Limitation period or prescription

• 167 (1) No proceedings in respect of a violation may be commenced later than two years after the day on which the subject matter of the proceedings became known to the Bank.

• Marginal note:Certificate

  (2) A document appearing to have been issued by the Bank, certifying the day on which the subject matter of any proceedings became known to the Bank, is admissible in evidence without proof of the signature or official character of the person appearing to have signed the document and is, in the absence of evidence to the contrary, proof of the matter asserted in it.

Marginal note:Publication

• 168 (1) Subject to any regulations, the Bank must make public the nature of a violation, the name of the individual or entity that committed it and the amount of the penalty imposed.

• Marginal note:Publication — reasons

  (2) In making public the nature of a violation, the Bank may include the reasons for the decision, including the relevant facts, analysis and considerations that formed part of the decision.

Authorization — "Consumer-Driven Banking"

Marginal note:Use of phrase

169 A participating entity, an accredited third-party service provider and the technical standards body are authorized to use the phrase "consumer-driven banking" to indicate or describe the activities that they perform under this Act.

Prohibitions

Marginal note:Claiming to be participating entity

170 An individual or entity, other than a participating entity, must not

• (a) use the term "participating entity" or a variation, abbreviation or equivalent of that term, or any words, name or designation — in any language — in a manner that leads to a reasonable belief that the individual or entity is a participating entity for the purposes of this Act; or

• (b) represent themselves, in any way or by any means, to be a participating entity for the purposes of this Act.

Marginal note:Screen scraping

171 Subject to the regulations, an individual or entity must not, for the purposes of providing a consumer in Canada with a product or service, use an interface or application to gain direct access to the consumer's data using the consumer's authentication information.

Marginal note:False or misleading information

172 An individual or entity must not knowingly provide false or misleading information in relation to their participation under this Act.

Marginal note:False or misleading information

173 An individual or entity must not provide false or misleading information to the Bank, the Minister or a designated person or government authority.

Offences and Punishment

Marginal note:Offence

• 174 (1) Every individual or entity commits an offence that

  • (a) contravenes a provision of this Act, other than section 172, or of the regulations;

  • (b) fails to comply with an order made under section 55 or an undertaking required under that section;

  • (c) fails to comply with an order made under section 56 or subsection 60(1) or (3) or 61(1) or (3);

  • (d) fails to comply with a compliance agreement entered into under section 147; or

  • (e) fails to comply with a direction made under section 148.

• Marginal note:Offence — section 172

  (2) Every individual or entity that contravenes section 172 commits an offence.

• Marginal note:Penalty

  (3) Every individual or entity that commits an offence under subsection (1) or (2) is liable

  • (a) on conviction on indictment,

    • (i) in the case of an individual, to a fine of not more than $1,000,000 or to imprisonment for a term of not more than five years, or to both, or

    • (ii) in the case of an entity, to a fine of not more than $5,000,000; or

  • (b) on summary conviction,

    • (i) in the case of an individual, to a fine of not more than $100,000 or to imprisonment for a term of not more than one year, or to both, or

    • (ii) in the case of an entity, to a fine of not more than $500,000.

• Marginal note:Due diligence defence

  (4) An individual or entity is not to be found guilty of an offence under subsection (1) if they establish that they exercised due diligence to prevent the commission of the offence.

Marginal note:Order to comply

• 175 (1) If an individual or entity is convicted of an offence under this Act, the court may, in addition to any punishment that it may otherwise impose, order the individual or entity to comply with the provisions of this Act or of the regulations in respect of which the individual or entity was convicted.

• Marginal note:Additional fine

  (2) If an individual or entity is convicted of an offence under this Act, the court may, if it is satisfied that as a result of the commission of the offence the convicted individual or entity acquired any monetary benefits or that monetary benefits accrued to the convicted individual or entity or the individual's spouse, common-law partner or other dependant, order the convicted individual or entity to pay, despite the maximum amount of any fine that may otherwise be imposed under this Act, an additional fine in an amount equal to three times the court's estimation of the amount of those monetary benefits.

Marginal note:Party to offence

176 If an entity commits an offence under this Act, any director, any officer, any agent or mandatary or any principal officer of the entity who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on summary conviction or on conviction on indictment to the punishment provided for an individual in respect of the offence, whether or not the entity has been prosecuted or convicted.

Marginal note:Limitation period

• 177 (1) Proceedings by way of summary conviction in respect of an offence under this Act may be commenced at any time within, but not later than, two years after the day on which the subject matter of the proceedings became known to the Bank.

• Marginal note:Certificate

  (2) A document appearing to have been issued by the Bank, certifying the day on which the subject matter of any proceedings became known to the Bank, is admissible in evidence without proof of the signature or official character of the person appearing to have signed the document and is, in the absence of evidence to the contrary, proof of the matter asserted in it.

Regulations

Marginal note:Regulations

178 The Governor in Council may, on the recommendation of the Minister, make regulations generally for carrying out the purposes and provisions of this Act and, in particular, may make regulations

• (a) specifying the data that is excluded from the definition derived data in section 2;

• (b) respecting accreditation;

• (c) respecting fees for accreditation;

• (d) respecting notifications and the provision of information in the case of the revocation of a participating entity's or accredited third-party service provider's accreditation;

• (e) respecting the registry referred to in section 44;

• (f) respecting the sharing of data under section 76 and providing for exceptions to the duty to share and to the prohibition on imposing conditions set out in that section;

• (g) respecting security safeguards to be implemented for the purposes of section 79;

• (h) respecting designations under section 80;

• (i) respecting reports made and notices given under section 82;

• (j) respecting the duty to investigate and report under section 83;

• (k) respecting the express consent that must be obtained under section 85;

• (l) respecting the information to be provided under subsection 85(4);

• (m) respecting exceptions to the duty set out in subsection 85(6);

• (n) respecting the record that must be kept under subsection 85(8);

• (o) respecting the renewal of consent under subsection 87(1), providing for the circumstances referred to in that subsection and respecting the information to be provided under paragraph 87(4)(c);

• (p) exempting participating entities, for the purposes of subsection 87(2), from any requirements under subsection 85(4);

• (q) respecting exceptions to the duty set out in subsection 87(5);

• (r) respecting the notice of withdrawal of consent referred to in subsection 90(1) and the information to be provided under paragraph 90(2)(c);

• (s) respecting exceptions to the duty set out in subsection 90(4);

• (t) respecting the duty set out in subsection 92(1);

• (u) respecting the display of a sign under section 94;

• (v) respecting the duties set out in section 96;

• (w) respecting the duty to keep records under section 102;

• (x) respecting the liability of consumers and participating entities under subsection 103(1);

• (y) respecting the duties set out in subsection 105(4) or section 111;

• (z) respecting the duty to keep records under section 122;

• (z.1) respecting the annual report referred to in section 128, including the information that is to be included in the report and the form and manner in which, and the time within which, it is to be submitted;

• (z.2) respecting the circumstances in which information referred to in subsection 133(1) may be used as evidence;

• (z.3) respecting exceptions to the prohibition set out in section 171; and

• (z.4) providing for anything that by this Act is to be provided for in the regulations.

Marginal note:Statutory Instruments Act

179 The Statutory Instruments Act does not apply in respect of

• (a) an order made under any of subsections 13(1) to (3);

• (b) a notice given under section 25;

• (c) a notice given under section 38;

• (d) a directive issued under section 51;

• (e) an order made under any of sections 55 to 57;

• (f) an order made under subsection 60(1) or (3) or 61(1) or (3);

• (g) a notice issued under subsection 66(1);

• (h) a directive issued under subsection 67(2) or (7) or section 68;

• (i) a designation made under subsection 114(1);

• (j) an order made under subsection 119(1);

• (k) an order made under subsection 124(1);

• (l) an order made under subsection 125(1) or 127(1); or

• (m) a direction made under section 148.

Review

Marginal note:Review

180 No later than the third anniversary of the day on which this section comes into force, and every five years after that, the Minister must cause a review of this Act and its operation to be commenced.

Coming into Force

Marginal note:Order in council

181 The provisions of this Act, other than sections 1 to 9, 13, 14, 74 and 113, subsections 114(1), (2), (4) and (5), paragraph 115(a) and sections 117 to 119, 123 to 132, 136 to 139, 143, 147 to 149, 169, 170 and 172 to 179, come into force on a day or days to be fixed by order of the Governor in Council.

Related Amendments

R.S., c. A-1Access to Information Act

225 Schedule II to the Access to Information Act is amended by adding, in alphabetical order, a reference to

• Consumer-Driven Banking Act

  Loi sur les services bancaires axés sur les consommateurs

and a corresponding reference to "sections 131 and 132".

2001, c. 9Financial Consumer Agency of Canada Act

226 The definitions participating entity, Senior Deputy Commissioner and technical standards body in section 2 of the Financial Consumer Agency of Canada Act are repealed.

227 Section 2.1 of the Act is replaced by the following:

Marginal note:Supervision and protection

2.1 The purpose of this Act is to ensure that financial institutions, the external complaints body and payment card network operators are supervised by an agency of the Government of Canada so as to contribute to the protection of consumers of financial products and services and the public, including by strengthening the financial literacy of Canadians.

228 Subsection 3(4) of the Act is repealed.

229 Subsection 5.1(1) of the Act is replaced by the following:

Marginal note:Minister's direction

• 5.1 (1) The Minister may give a written direction to the Agency if the Minister is of the opinion that it can strengthen consumer protection and the public's confidence in that protection or enhance the financial literacy of Canadians.

230 The heading before section 7.2 and sections 7.2 to 7.4 of the Act are repealed.

231 Section 9.1 of the Act is repealed.

232 Section 10 of the Act is replaced by the following:

Marginal note:Employees

10 The employees that are necessary to enable the Commissioner to perform the Commissioner's duties are to be appointed in accordance with the Public Service Employment Act.

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

Marginal note:Responsibility for human resources management

• 11 (1) In respect of persons appointed under sections 8 and 10, the Commissioner is authorized to exercise the powers and perform the functions of the Treasury Board that relate to human resources management within the meaning of paragraphs 7(1)(b) and (e) and section 11.1 of the Financial Administration Act, and those of deputy heads under subsection 12(2) of that Act, as that subsection reads without regard to any terms and conditions that the Governor in Council may direct, including the determination of terms and conditions of employment and the responsibility for employer and employee relations.

234 Section 12.1 of the Act and the heading before it are repealed.

235 Subsection 13(3) of the Act is replaced by the following:

• Marginal note:Payment for activity

  (3) If the Agency carries on any activity in furtherance of an object described in paragraph 3(2)(d) or (e) on the Minister's recommendation, the Minister may on terms and conditions approved by the Treasury Board, in any fiscal year, make a payment out of the Consolidated Revenue Fund to the Agency for the purposes of the activity.

• 236 (1) Subsection 14(1) of the Act is replaced by the following:

  Marginal note:Ownership

  • 14 (1) The Commissioner, a person appointed under subsection 4(4) or a Deputy Commissioner must not hold, directly or indirectly, any interest or right in any shares of any financial institution, any bank holding company, any insurance holding company, the external complaints body or any other body corporate, however created, carrying on any business in Canada that is substantially similar to any business carried on by any financial institution or the external complaints body.

• (2) The portion of subsection 14(2) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Prohibitions — federal credit union

    (2) The Commissioner, a person appointed under subsection 4(4) or a Deputy Commissioner must not

237 Sections 14.1 and 15 of the Act are replaced by the following:

Marginal note:Ownership — payment card network operators

14.1 The Commissioner, a person appointed under subsection 4(4) or a Deputy Commissioner must not hold, directly or indirectly, any interest or right in any shares of a payment card network operator.

• 238 (1) Subsections 16(1) to (1.2) of the Act are replaced by the following:

  Marginal note:No grant or gratuity to be made

  • 16 (1) The Commissioner, a person appointed under subsection 4(4), a Deputy Commissioner and any person appointed under section 10 must not accept or receive, directly or indirectly, any grant or gratuity from a financial institution, a bank holding company, an insurance holding company or the external complaints body or from a director, officer or employee of any of them and a financial institution, a bank holding company, an insurance holding company and the external complaints body, and any director, officer or employee of any of them, must not make or give any such grant or gratuity.

  • Marginal note:No grant or gratuity — payment card network operators

    (1.1) The Commissioner, a person appointed under subsection 4(4), a Deputy Commissioner and any person appointed under section 10 must not accept or receive, directly or indirectly, any grant or gratuity from a payment card network operator or any of its directors, officers or employees, and a payment card network operator or any of its directors, officers or employees must not make or give any such grant or gratuity.

• (2) The portion of subsection 16(2) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Offence and punishment

    (2) Every person, financial institution, bank holding company, insurance holding company or payment card network operator that contravenes subsection (1) or (1.1) is guilty of an offence and liable

239 Subsections 17(5) and (6) of the Act are repealed.

240 Section 33 of the Act is replaced by the following:

Marginal note:No liability

33 No action lies against His Majesty, the Minister, the Commissioner, any Deputy Commissioner, any officer or employee of the Agency or any person acting under the direction of the Commissioner for anything done or omitted to be done in good faith in the administration or discharge of any powers or duties that under any Act of Parliament are intended or authorized to be executed or performed.

241 Section 33.1 of the Act is replaced by the following:

Marginal note:Not compellable

33.1 The Commissioner, any Deputy Commissioner, any officer or employee of the Agency or any person acting under the instructions of the Commissioner is not a compellable witness in any civil proceedings in respect of any matter coming to their knowledge as a result of exercising any of their powers or performing any of their duties or functions under this Act or an Act listed in Schedule 1.

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

(Subparagraph 3(2)(a)(ii), subsection 5(1), subparagraph 19(1)(a)(i), paragraph 20(e) and sections 20.1 and 33.1)

243 Schedule 1 to the Act is amended by striking out the following:

• Consumer-Driven Banking Act

  Loi sur les services bancaires axés sur les consommateurs

2024, c. 17Budget Implementation Act, 2024, No. 1

244 Sections 213 to 221 of the Budget Implementation Act, 2024, No. 1 are repealed.

245 Section 224 of the Act is repealed.

Repeal

Marginal note:Repeal

246 The Consumer-Driven Banking Act, section 198 of chapter 17 of the Statutes of Canada, 2024, is repealed.

DIVISION 10Legislation Related to Financial Institutions (Sunset Provisions)

1991, c. 45Trust and Loan Companies Act

247 Subsection 20(1) of the Trust and Loan Companies Act is replaced by the following:

Marginal note:Sunset provision

• 20 (1) Subject to subsections (2) and (4), companies shall not carry on business after June 30, 2033.

1991, c. 46Bank Act

248 Subsection 21(1) of the Bank Act is replaced by the following:

Marginal note:Sunset provision

• 21 (1) Subject to subsections (2) and (4), banks shall not carry on business, and authorized foreign banks shall not carry on business in Canada, after June 30, 2033.

249 Subsection 670(1) of the Act is replaced by the following:

Marginal note:Sunset provision

• 670 (1) Subject to subsections (2) and (4), bank holding companies shall not carry on business after June 30, 2033.

1991, c. 47Insurance Companies Act

250 Subsection 21(1) of the Insurance Companies Act is replaced by the following:

Marginal note:Sunset provision

• 21 (1) Subject to subsections (2) and (4), companies and societies shall not carry on business, and foreign companies shall not carry on business in Canada, after June 30, 2033.

251 Subsection 707(1) of the Act is replaced by the following:

Marginal note:Sunset provision

• 707 (1) Subject to subsections (2) and (4), insurance holding companies shall not carry on business after June 30, 2033.

DIVISION 11Legislation Related to Financial Institutions (Modernizing Limits on Borrowing, Loans and Investments)

1991, c. 45Trust and Loan Companies Act

252 The definition commercial loan in subsection 449(1) of the Trust and Loan Companies Act is repealed.

253 The heading before section 460 and sections 460 to 466 of the Act are repealed.

254 Section 467 of the Act is amended by adding "or" at the end of paragraph (a), by striking out "or" at the end of paragraph (b) and by repealing paragraph (c).

255 Section 468 of the Act is amended by adding the following after subsection (1):

• Marginal note:Divestment order — portfolios of loans and interests

  (1.1) Subject to subsection (1.2), the Superintendent may, by order, direct a company to reduce, within any period that the Superintendent considers reasonable, the aggregate value of one or more of the following categories of loans or interests by way of a disposition of a portion of that value:

  • (a) the commercial loans held by the company and its subsidiaries;

  • (b) the interests of the company and its subsidiaries in real property; and

  • (c) the following interests of the company and its subsidiaries:

    • (i) the participating shares of a body corporate that are beneficially owned by the company and its subsidiaries, other than participating shares of a permitted entity in which the company has a substantial investment, and

    • (ii) the ownership interests in an unincorporated entity that are beneficially owned by the company and its subsidiaries, other than ownership interests in a permitted entity in which the company has a substantial investment.

• Marginal note:Prudential considerations

  (1.2) The Superintendent may make an order under subsection (1.1) only on the basis of prudential considerations that the Superintendent considers relevant with respect to the aggregate value of the category or categories of loans or interests in question.

256 Paragraph 470(2)(a) of the Act is replaced by the following:

• (a) assets that are debt obligations that are

  • (i) guaranteed by any financial institution other than the company,

  • (ii) fully secured by deposits with any financial institution, including the company, or

  • (iii) fully secured by debt obligations that are guaranteed by any financial institution other than the company;

• (a.1) assets that are debt obligations issued

  • (i) by, or by any agency of,

    • (A) the Government of Canada,

    • (B) the government of a province,

    • (C) a municipality, or

    • (D) the government of a foreign country or any political subdivision of a foreign country, or

  • (ii) by a prescribed international agency;

• (a.2) assets that are debt obligations that are guaranteed by, or fully secured by securities issued by, a government, a municipality or an agency referred to in paragraph (a.1);

• (a.3) assets that are debt obligations that are widely distributed, as that expression is defined by the regulations;

• (a.4) assets that are debt obligations of an entity controlled by the company;

1991, c. 46Bank Act

257 The heading before section 475 and sections 475 to 478 of the Bank Act are repealed.

258 Section 479 of the Act is amended by adding "or" at the end of paragraph (a), by striking out "or" at the end of paragraph (b) and by repealing paragraph (c).

259 Section 480 of the Act is amended by adding the following after subsection (1):

• Marginal note:Divestment order — portfolios of interests

  (1.1) Subject to subsection (1.2), the Superintendent may, by order, direct a bank to reduce, within any period that the Superintendent considers reasonable, the aggregate value of one or more of the following categories of interests by way of a disposition of a portion of that value:

  • (a) the interests of the bank and its subsidiaries in real property; and

  • (b) the following interests of the bank and its subsidiaries:

    • (i) the participating shares of a body corporate that are beneficially owned by the bank and its subsidiaries, other than participating shares of a permitted entity in which the bank has a substantial investment, and

    • (ii) the ownership interests in an unincorporated entity that are beneficially owned by the bank and its subsidiaries, other than ownership interests in a permitted entity in which the bank has a substantial investment.

• Marginal note:Prudential considerations

  (1.2) The Superintendent may make an order under subsection (1.1) only on the basis of prudential considerations that the Superintendent considers relevant with respect to the aggregate value of the category or categories of interests in question.

260 The heading before section 937 and sections 937 to 940 of the Act are repealed.

261 Section 941 of the Act is amended by adding "or" at the end of paragraph (a), by striking out "or" at the end of paragraph (b) and by repealing paragraph (c).

262 Section 942 of the Act is amended by adding the following after subsection (1):

• Marginal note:Divestment order — portfolios of interests

  (1.1) Subject to subsection (1.2), the Superintendent may, by order, direct a bank holding company to reduce, within any period that the Superintendent considers reasonable, the aggregate value of one or more of the following categories of interests by way of a disposition of a portion of that value:

  • (a) the interests of the bank holding company and its subsidiaries in real property; and

  • (b) the following interests of the bank holding company and its subsidiaries:

    • (i) the participating shares of a body corporate that are beneficially owned by the bank holding company and its subsidiaries, other than participating shares of a permitted entity in which the bank holding company has a substantial investment, and

    • (ii) the ownership interests in an unincorporated entity that are beneficially owned by the bank holding company and its subsidiaries, other than ownership interests in a permitted entity in which the bank holding company has a substantial investment.

• Marginal note:Prudential considerations

  (1.2) The Superintendent may make an order under subsection (1.1) only on the basis of prudential considerations that the Superintendent considers relevant with respect to the aggregate value of the category or categories of interests in question.

1991, c. 47Insurance Companies Act

263 Section 473 of the Insurance Companies Act is repealed.

264 Section 476 of the Act is repealed.

265 The definition commercial loan in subsection 490(1) of the Act is repealed.

266 The heading before section 502 and sections 502 to 508 of the Act are repealed.

267 Section 509 of the Act is amended by adding "or" at the end of paragraph (a) and by repealing paragraphs (c) and (d).

268 Section 510 of the Act is amended by adding the following after subsection (1):

• Marginal note:Divestment order — portfolios of loans and interests

  (1.1) Subject to subsection (1.2), the Superintendent may, by order, direct a company to reduce, within any period that the Superintendent considers reasonable, the aggregate value of one or more of the following categories of loans or interests by way of a disposition of a portion of that value:

  • (a) the following loans:

    • (i) in the case of a life company, the commercial loans held by the company and its subsidiaries, and

    • (ii) in the case of a property and casualty company or a marine company, the commercial loans and loans to natural persons held by the company and its subsidiaries;

  • (b) the interests of the company and its subsidiaries in real property; and

  • (c) the following interests of the company and its subsidiaries:

    • (i) the participating shares of a body corporate that are beneficially owned by the company and its subsidiaries, other than participating shares of a permitted entity in which the company has a substantial investment, and

    • (ii) the ownership interests in an unincorporated entity that are beneficially owned by the company and its subsidiaries, other than ownership interests in a permitted entity in which the company has a substantial investment.

• Marginal note:Prudential considerations

  (1.2) The Superintendent may make an order under subsection (1.1) only on the basis of prudential considerations that the Superintendent considers relevant with respect to the aggregate value of the category or categories of loans or interests in question.

269 Paragraph 512(2)(a) of the Act is replaced by the following:

• (a) assets that are debt obligations that are

  • (i) guaranteed by any financial institution other than the company,

  • (ii) fully secured by deposits with any financial institution, or

  • (iii) fully secured by debt obligations that are guaranteed by any financial institution other than the company;

• (a.1) assets that are debt obligations issued

  • (i) by, or by any agency of,

    • (A) the Government of Canada,

    • (B) the government of a province,

    • (C) a municipality, or

    • (D) the government of a foreign country or any political subdivision of a foreign country, or

  • (ii) by a prescribed international agency;

• (a.2) assets that are debt obligations that are guaranteed by, or fully secured by securities issued by, a government, a municipality or an agency referred to in paragraph (a.1);

• (a.3) assets that are debt obligations that are widely distributed, as that expression is defined by the regulations;

• (a.4) assets that are debt obligations of an entity controlled by the company;

270 Section 542.1 of the Act is repealed.

271 The heading before section 561 and sections 561 to 563 of the Act are repealed.

272 The Act is amended by adding the following before section 564:

Regulations

273 Section 564 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).

274 The heading before section 565 and sections 565 and 566 of the Act are repealed.

275 Section 567 of the Act is amended by adding the following after subsection (2):

• Marginal note:Divestment order — portfolios of loans and interests

  (3) Subject to subsection (4), the Superintendent may, by order, direct a society to reduce, within any period that the Superintendent considers reasonable, the aggregate value of one or more of the following categories of loans or interests by way of a disposition of a portion of that value:

  • (a) the commercial loans and loans to natural persons held by the society and its subsidiaries;

  • (b) the interests of the society and its subsidiaries in real property; and

  • (c) the following interests of the society and its subsidiaries:

    • (i) the participating shares of a body corporate that are beneficially owned by the society and its subsidiaries, other than participating shares of a permitted entity in which the society has a substantial investment, and

    • (ii) the ownership interests in an unincorporated entity that are beneficially owned by the society and its subsidiaries, other than ownership interests in a permitted entity in which the society has a substantial investment.

• Marginal note:Prudential considerations

  (4) The Superintendent may make an order under subsection (3) only on the basis of prudential considerations that the Superintendent considers relevant with respect to the aggregate value of the category or categories of loans or interests in question.

276 Paragraph 569(2)(a) of the Act is replaced by the following:

• (a) assets that are debt obligations that are

  • (i) guaranteed by any financial institution other than the society,

  • (ii) fully secured by deposits with any financial institution, or

  • (iii) fully secured by debt obligations that are guaranteed by any financial institution other than the society;

• (a.1) assets that are debt obligations issued

  • (i) by, or by any agency of,

    • (A) the Government of Canada,

    • (B) the government of a province,

    • (C) a municipality, or

    • (D) the government of a foreign country or any political subdivision of a foreign country, or

  • (ii) by a prescribed international agency;

• (a.2) assets that are debt obligations that are guaranteed by, or fully secured by securities issued by, a government, a municipality or an agency referred to in paragraph (a.1);

• (a.3) assets that are debt obligations that are widely distributed, as that expression is defined by the regulations;

• (a.4) assets that are debt obligations of an entity controlled by the society; or

277 Subsection 610(1) of the Act is amended by adding "and" at the end of paragraph (d) and by repealing paragraph (e).

278 The heading before section 613 of the Act is replaced by the following:

Application

279 Section 613 of the Act is repealed.

280 Section 614 of the Act is replaced by the following:

Marginal note:Non-application

• 614 (1) Sections 612 and 615 do not apply in respect of assets of a foreign company held in relation to a segregated fund maintained under section 593.

• Marginal note:Exclusion of liabilities of segregated funds

  (2) A reference in section 615 to the assets in Canada or the liabilities in Canada of a foreign company does not include liabilities of the foreign company for the policies and amounts in respect of which a segregated fund is maintained under section 593.

281 The heading before section 616 and sections 616 to 620 of the Act are repealed.

282 The heading before section 978 and sections 978 to 983 of the Act are repealed.

283 Section 984 of the Act is amended by adding "or" at the end of paragraph (a) and by repealing paragraphs (c) and (d).

284 Section 985 of the Act is amended by adding the following after subsection (1):

• Marginal note:Divestment order — portfolios of loans and interests

  (1.1) Subject to subsection (1.2), the Superintendent may, by order, direct an insurance holding company to reduce, within any period that the Superintendent considers reasonable, the aggregate value of one or more of the following categories of loans or interests by way of a disposition of a portion of that value:

  • (a) the commercial loans held by the insurance holding company and its subsidiaries;

  • (b) the interests of the insurance holding company and its subsidiaries in real property; and

  • (c) the following interests of the insurance holding company and its subsidiaries:

    • (i) the participating shares of a body corporate that are beneficially owned by the insurance holding company and its subsidiaries, other than participating shares of a permitted entity in which the insurance holding company has a substantial investment, and

    • (ii) the ownership interests in an unincorporated entity that are beneficially owned by the insurance holding company and its subsidiaries, other than ownership interests in a permitted entity in which the insurance holding company has a substantial investment.

• Marginal note:Prudential considerations

  (1.2) The Superintendent may make an order under subsection (1.1) only on the basis of prudential considerations that the Superintendent considers relevant with respect to the aggregate value of the category or categories of loans or interests in question.

285 Paragraph 987(2)(a) of the Act is replaced by the following:

• (a) assets that are debt obligations that are

  • (i) guaranteed by any financial institution other than the insurance holding company,

  • (ii) fully secured by deposits with any financial institution, or

  • (iii) fully secured by debt obligations that are guaranteed by any financial institution other than the insurance holding company;

• (a.1) assets that are debt obligations issued

  • (i) by, or by any agency of,

    • (A) the Government of Canada,

    • (B) the government of a province,

    • (C) a municipality, or

    • (D) the government of a foreign country or any political subdivision of a foreign country, or

  • (ii) by a prescribed international agency;

• (a.2) assets that are debt obligations that are guaranteed by, or fully secured by securities issued by, a government, a municipality or an agency referred to in paragraph (a.1);

• (a.3) assets that are debt obligations that are widely distributed, as that expression is defined by the regulations;

• (a.4) assets that are debt obligations of an entity controlled by the insurance holding company; or

Coming into Force

Marginal note:Order in council

286 The provisions of this Division come into force on a day or days to be fixed by order of the Governor in Council.

DIVISION 12Legislation Related to Financial Institutions (Electronic Delivery of Governance Documents)

1991, c. 46Bank Act

287 The Bank Act is amended by adding the following after section 14.11:

Marginal note:Schedule V

14.12 The Governor in Council may, by order, amend Schedule V by adding, deleting or amending a reference to a version of National Instrument 51-102 or National Instrument 54-101.

288 Section 992 of the Act is amended by adding the following in alphabetical order:

NI 51-102

NI 51-102 in respect of a province set out in column 1 of Table 1 of Schedule V, means the version of National Instrument 51-102 referred to in column 2. (Règlement 51-102)

NI 54-101

NI 54-101 in respect of a province set out in column 1 of Table 1 of Schedule V, means the version of National Instrument 54-101 referred to in column 2. (Règlement 54-101)

• 289 (1) The portion of subsection 995(1) of the Act before paragraph (a) is replaced by the following:

  Marginal note:Consent and other requirements

  • 995 (1) Despite anything in this Part, but subject to subsections (3) and (4), a requirement under this Act or the regulations to provide a notice, document or other information is not satisfied by providing an electronic document unless

• (2) Section 995 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Notice-and-access — distributing institutions

    (3) Subsection (1) does not apply in respect of the provision of a document or other information, including a proxy circular, to shareholders of a distributing bank or of a distributing bank holding company for use in connection with a meeting for which notice referred to in subsection 138(1) or 727(1) is sent if

    • (a) a notice of availability of documents or other information for use in connection with the meeting is sent in accordance with the rules governing notice-and-access set out in NI 51-102 or NI 54-101;

    • (b) the notice is accompanied by any form of proxy and written request for voting instructions that are required to be sent under this Act; and

    • (c) the document or other information is made available as an electronic document in accordance with the rules governing notice-and-access set out in NI 51-102 or NI 54-101.

  • Marginal note:Notice-and-access — institutions that are not distributing

    (4) Subsection (1) does not apply in respect of the provision of a document or other information, including a proxy circular, to shareholders or members of a bank that is not a distributing bank, of a bank holding company that is not a distributing bank holding company or of a federal credit union for use in connection with a meeting for which notice referred to in subsection 138(1) or 727(1) is sent if

    • (a) a notice of availability of documents or other information for use in connection with the meeting is sent to the shareholders or members that contains only

      • (i) the time and place of the meeting,

      • (ii) a statement that the documents or other information for use in connection with the meeting are available as electronic documents on the website of the bank, bank holding company or federal credit union,

      • (iii) the address of the website of the bank, bank holding company or federal credit union on which the documents or other information are available,

      • (iv) a statement that no paper copies of any document or other information for use in connection with the meeting will be sent unless they are requested,

      • (v) instructions on how to request the paper copies,

      • (vi) a description of the matters to be voted on during the meeting, and

      • (vii) a description of the voting procedures;

    • (b) the notice is accompanied by any form of proxy and written request for voting instructions that are required to be sent under this Act; and

    • (c) the document or other information is made available to shareholders or members as an electronic document on the website of the bank, bank holding company or federal credit union.

  • Marginal note:Documents available on website

    (5) For the purposes of paragraph (4)(c), a document or other information is considered to be available as an electronic document only if

    • (a) it is available on the website on or before the day on which the notice referred to in paragraph (4)(a) is sent;

    • (b) it remains available on the website for at least one year; and

    • (c) it is in an accessible, printable and searchable format.

  • Marginal note:Requests for paper copies

    (6) On the request of a shareholder or member of a bank that is not a distributing bank, of a bank holding company that is not a distributing bank holding company or of a federal credit union, paper copies of the following documents or other information must be sent by prepaid mail addressed to, or delivered personally to, the shareholder or member at their latest address as shown in the records of the bank, bank holding company or federal credit union, or of its transfer agent:

    • (a) any document or other information made available under subsection (4) before the request is made; or

    • (b) all documents and other information made available under subsection (4) after the request is made.

  • Marginal note:Documents already made available

    (7) A document or other information referred to in paragraph (6)(a) must be sent or delivered

    • (a) within three business days after the day on which the request is received, if it is received before the day of the meeting; or

    • (b) within 10 days after the day on which the request is received, if it is received on or after the day of the meeting.

  • Marginal note:For greater certainty

    (8) For greater certainty, a document or other information that is required under this Act or the regulations to be sent to a specific place and that is made available under paragraph (3)(c) or (4)(c) is not required to be sent to an information system designated by the addressee.

290 The Act is amended by adding, after Schedule IV, the Schedule V set out in Schedule 3 to this Act.

1991, c. 45Trust and Loan Companies Act

291 Section 539.01 of the Trust and Loan Companies Act is amended by adding the following in alphabetical order:

NI 51-102

NI 51-102 in respect of a province set out in column 1 of Table 1 of Schedule V to the Bank Act, means the version of National Instrument 51-102 referred to in column 2. (Règlement 51-102)

NI 54-101

NI 54-101 in respect of a province set out in column 1 of Table 1 of Schedule V to the Bank Act, means the version of National Instrument 54-101 referred to in column 2. (Règlement 54-101)

• 292 (1) The portion of subsection 539.04(1) of the Act before paragraph (a) is replaced by the following:

  Marginal note:Consent and other requirements

  • 539.04 (1) Despite anything in this Part, but subject to subsections (3) and (4), a requirement under this Act or the regulations to provide a notice, document or other information is not satisfied by providing an electronic document unless

• (2) Section 539.04 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Notice-and-access — distributing companies

    (3) Subsection (1) does not apply in respect of the provision of a document or other information, including a proxy circular, to shareholders of a distributing company for use in connection with a meeting for which notice referred to in subsection 141(1) is sent if

    • (a) a notice of availability of documents or other information for use in connection with the meeting is sent in accordance with the rules governing notice-and-access set out in NI 51-102 or NI 54-101;

    • (b) the notice is accompanied by any form of proxy and written request for voting instructions that are required to be sent under this Act; and

    • (c) the document or other information is made available as an electronic document in accordance with the rules governing notice-and-access set out in NI 51-102 or NI 54-101.

  • Marginal note:Notice-and-access — companies that are not distributing

    (4) Subsection (1) does not apply in respect of the provision of a document or other information, including a proxy circular, to shareholders of a company that is not a distributing company for use in connection with a meeting for which notice referred to in subsection 141(1) is sent if

    • (a) a notice of availability of documents or other information for use in connection with the meeting is sent to the shareholders that contains only

      • (i) the time and place of the meeting,

      • (ii) a statement that the documents or other information for use in connection with the meeting are available as electronic documents on the website of the company,

      • (iii) the address of the website of the company on which the documents or other information are available,

      • (iv) a statement that no paper copies of any document or other information for use in connection with the meeting will be sent unless they are requested,

      • (v) instructions on how to request the paper copies,

      • (vi) a description of the matters to be voted on during the meeting, and

      • (vii) a description of the voting procedures;

    • (b) the notice is accompanied by any form of proxy and written request for voting instructions that are required to be sent under this Act; and

    • (c) the document or other information is made available to shareholders as an electronic document by making it available on the website of the company.

  • Marginal note:Documents available on website

    (5) For the purposes of paragraph (4)(c), a document or other information is considered to be available as an electronic document only if

    • (a) it is available on the website on or before the day on which the notice referred to in paragraph (4)(a) is sent;

    • (b) it remains available on the website for at least one year; and

    • (c) it is in an accessible, printable and searchable format.

  • Marginal note:Requests for paper copies

    (6) On the request of a shareholder of a company that is not a distributing company, paper copies of the following documents or other information must be sent by prepaid mail addressed to, or delivered personally to, the shareholder at their latest address as shown in the records of the company, or of its transfer agent:

    • (a) any document or other information made available under subsection (4) before the request is made; or

    • (b) all documents and other information made available under subsection (4) after the request is made.

  • Marginal note:Documents already made available

    (7) A document or other information referred to in paragraph (6)(a) must be sent or delivered

    • (a) within three business days after the day on which the request is received, if it is received before the day of the meeting; or

    • (b) within 10 days after the day on which the request is received, if it is received on or after the day of the meeting.

  • Marginal note:For greater certainty

    (8) For greater certainty, a document or other information that is required under this Act or the regulations to be sent to a specific place and that is made available under paragraph (3)(c) or (4)(c) is not required to be sent to an information system designated by the addressee.

1991, c. 47Insurance Companies Act

293 Section 1034 of the Insurance Companies Act is amended by adding the following in alphabetical order:

NI 51-102

NI 51-102 in respect of a province set out in column 1 of Table 1 of Schedule V to the Bank Act, means the version of National Instrument 51-102 referred to in column 2. (Règlement 51-102)

NI 54-101

NI 54-101 in respect of a province set out in column 1 of Table 1 of Schedule V to the Bank Act, means the version of National Instrument 54-101 referred to in column 2. (Règlement 54-101)

• 294 (1) The portion of subsection 1037(1) of the Act before paragraph (a) is replaced by the following:

  Marginal note:Consent and other requirements

  • 1037 (1) Despite anything in this Part, but subject to subsections (3) to (5), a requirement under this Act or the regulations to provide a notice, document or other information is not satisfied by providing an electronic document unless

• (2) Section 1037 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Notice-and-access — distributing companies

    (3) Subsection (1) does not apply in respect of the provision of a document or other information, including a proxy circular, to shareholders of a distributing company or of a distributing insurance holding company for use in connection with a meeting for which notice referred to in subsection 143(1) or 767(1) is sent if

    • (a) a notice of availability of documents or other information for use in connection with the meeting is sent in accordance with the rules governing notice-and-access set out in NI 51-102 or NI 54-101;

    • (b) the notice is accompanied by any form of proxy and written request for voting instructions that are required to be sent under this Act; and

    • (c) the document or other information is made available as an electronic document in accordance with the rules governing notice-and-access set out in NI 51-102 or NI 54-101.

  • Marginal note:Policyholders

    (4) Subsection (1) does not apply in respect of the provision of a document or other information, including a proxy circular, to policyholders of a distributing company for use in connection with a meeting for which notice referred to in subsection 143(1) is sent if

    • (a) a notice of availability of documents or other information for use in connection with the meeting is sent to the policyholders that contains only

      • (i) the time and place of the meeting,

      • (ii) a statement that the documents or other information for use in connection with the meeting are available as electronic documents on the website of the company,

      • (iii) the address of the website of the company on which the documents or other information are available,

      • (iv) a statement that no paper copies of any document or other information for use in connection with the meeting will be sent unless they are requested,

      • (v) instructions on how to request the paper copies,

      • (vi) a description of the matters to be voted on during the meeting, and

      • (vii) a description of the voting procedures;

    • (b) the notice is accompanied by any form of proxy that is required to be sent under this Act; and

    • (c) the document or other information is made available to policyholders as an electronic document on the website of the company.

  • Marginal note:Notice-and-access — companies that are not distributing

    (5) Subsection (1) does not apply in respect of the provision of a document or other information, including a proxy circular, to shareholders or policyholders of a company that is not a distributing company or of an insurance holding company that is not a distributing insurance holding company for use in connection with a meeting for which notice referred to in subsection 143(1) or 767(1) is sent if

    • (a) a notice of availability of documents or other information for use in connection with the meeting is sent to the shareholders or policyholders that contains only

      • (i) the time and place of the meeting,

      • (ii) a statement that the documents or other information for use in connection with the meeting are available as electronic documents on the website of the company or insurance holding company,

      • (iii) the address of the website of the company or insurance holding company on which the documents or other information are available,

      • (iv) a statement that no paper copies of any document or other information for use in connection with the meeting will be sent unless they are requested,

      • (v) instructions on how to request the paper copies,

      • (vi) a description of the matters to be voted on during the meeting, and

      • (vii) a description of the voting procedures;

    • (b) the notice is accompanied by any form of proxy and written request for voting instructions that are required to be sent under this Act; and

    • (c) the document or other information is made available to shareholders or policyholders as an electronic document on the website of the company or insurance holding company.

  • Marginal note:Documents available on website

    (6) For the purposes of paragraphs (4)(c) and (5)(c), a document or other information is considered to be available as an electronic document only if

    • (a) it is available on the website on or before the day on which the notice referred to in paragraph (4)(a) or (5)(a) is sent;

    • (b) it remains available on the website for at least one year; and

    • (c) it is in an accessible, printable and searchable format.

  • Marginal note:Requests for paper copies

    (7) On the request of a policyholder of a distributing company or of a shareholder or policyholder of a company that is not a distributing company or of an insurance holding company that is not a distributing insurance holding company, paper copies of the following documents or other information must be sent by prepaid mail addressed to, or delivered personally to, the policyholder or shareholder at their latest address as shown in the records of the company or insurance holding company, or of its transfer agent:

    • (a) any document or other information made available under subsection (4) or (5) before the request is made; or

    • (b) all documents and other information made available under subsection (4) or (5) after the request is made.

  • Marginal note:Documents already made available

    (8) A document or other information referred to in paragraph (7)(a) must be sent or delivered

    • (a) within three business days after the day on which the request is received, if it is received before the day of the meeting; or

    • (b) within 10 days after the day on which the request is received, if it is received on or after the day of the meeting.

  • Marginal note:For greater certainty

    (9) For greater certainty, a document or other information that is required under this Act or the regulations to be sent to a specific place and that is made available under paragraph (3)(c), (4)(c) or (5)(c) is not required to be sent to an information system designated by the addressee.

DIVISION 13Legislation Related to Financial Institutions (Equity Threshold Related to Public Holding Requirement)

Marginal note:Terminology changes — replacement of "two"

295 Every reference to "two" is replaced by a reference to "four" in the following provisions:

• (a) in the Trust and Loan Companies Act,

  • (i) subsection 379(2),

  • (ii) subsection 384(1), and

  • (iii) the portion of paragraph 453(5)(b.1) before the formula;

• (b) in the Bank Act,

  • (i) the portion of subsection 385(1) before paragraph (a) and paragraphs 385(2)(a) and (b),

  • (ii) section 387,

  • (iii) the portion of paragraph 468(5)(b.1) before the formula,

  • (iv) the portion of subsection 893(1) before paragraph (a) and paragraphs 893(2)(a) and (b),

  • (v) section 896, and

  • (vi) the portion of paragraph 930(5)(b.1) before the formula; and

• (c) in the Insurance Companies Act,

  • (i) subsection 411(2),

  • (ii) subsection 416(1),

  • (iii) the portion of paragraph 495(7)(b.1) before the formula,

  • (iv) subsection 938(2),

  • (v) subsection 943(1), and

  • (vi) the portion of paragraph 971(5)(b.1) before the formula.

DIVISION 14Legislation Related to Financial Institutions (Powers of the Superintendent of Financial Institutions)

1991, c. 45Trust and Loan Companies Act

296 Paragraph 502(1)(b) of the Trust and Loan Companies Act is replaced by the following:

• (b) the company has adequate policies and procedures to protect itself against threats to its integrity or security and adheres to those policies and procedures.

297 Subsection 503(2) of the Act is amended by adding the following after paragraph (a):

• (a.001) to any federal government agency or body, for purposes related to the Superintendent's regulation or supervision of financial institutions, including purposes related to threats to the integrity or security of financial institutions or risks to national security,

298 Subsection 505(1) of the Act is replaced by the following:

Marginal note:Examination of companies

• 505 (1) The Superintendent, from time to time, but at least once in each calendar year, shall make or cause to be made any examination and inquiry into the business and affairs of each company that the Superintendent considers to be necessary or expedient to determine whether the company is complying with the provisions of this Act, whether the company is in a sound financial condition and whether the company has adequate policies and procedures to protect itself against threats to its integrity or security and adheres to those policies and procedures. After the conclusion of each examination and inquiry, the Superintendent shall report on it to the Minister.

299 Section 506.1 of the Act is replaced by the following:

Marginal note:Prudential agreement

506.1 The Superintendent may enter into an agreement, called a "prudential agreement", with a company for the purposes of implementing any measure designed to maintain or improve its safety and soundness, establishing adequate policies and procedures to protect it against threats to its integrity or security or maintaining or improving its adherence to those policies and procedures.

• 300 (1) The portion of subsection 507(1) of the Act before paragraph (a) is replaced by the following:

  Marginal note:Superintendent's directions to company

  • 507 (1) If, in the opinion of the Superintendent, a company, or a person with respect to a company, is committing, or is about to commit, an act that is an unsafe or unsound practice in conducting the business or affairs of the company, or is pursuing or is about to pursue any course of conduct that is an unsafe or unsound practice in conducting the business or affairs of the company, the Superintendent may direct the company or person to

• (2) Subsection 507(1.1) of the Act is replaced by the following:

  • Marginal note:Directions — policies and procedures

    (1.1) If, in the opinion of the Superintendent, a company does not have adequate policies and procedures to protect itself against threats to its integrity or security or does not adhere to those policies and procedures, the Superintendent may direct the company to take any measures that in the opinion of the Superintendent are necessary to remedy the situation.

301 Subsection 527.4(1) of the Act is replaced by the following:

Marginal note:Minister — terms, conditions and undertakings

• 527.4 (1) In addition to any other action that may be taken under this Act, the Minister may, in granting an approval, impose any terms and conditions or require any undertaking that the Minister considers appropriate, including any terms, conditions or undertakings specified by the Superintendent to maintain or improve the safety and soundness of any financial institution that is regulated under an Act of Parliament and to which the approval relates, or that might be affected by it, or to ensure that such a financial institution has adequate policies and procedures to protect itself against threats to its integrity or security and adheres to those policies and procedures.

1991, c. 46Bank Act

302 Subsection 606(2) of the Bank Act is amended by adding the following after paragraph (a):

• (a.1) to any federal government agency or body, for purposes related to the Superintendent's regulation or supervision of financial institutions, including purposes related to threats to the integrity or security of financial institutions or risks to national security,

303 Subsection 613(1) of the Act is replaced by the following:

Marginal note:Examination of authorized foreign banks

• 613 (1) The Superintendent, from time to time, but, in the case of an authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2), at least once in each calendar year, shall make or cause to be made any examination and inquiry into the business and affairs of each authorized foreign bank that the Superintendent considers to be necessary or expedient to determine whether the authorized foreign bank is complying with the provisions of this Act and whether the authorized foreign bank has adequate policies and procedures to protect itself against threats to its integrity or security in relation to its business in Canada and adheres to those policies and procedures. After the conclusion of each examination and inquiry, the Superintendent shall report on it to the Minister.

304 Section 614.1 of the Act is replaced by the following:

Marginal note:Prudential agreement

614.1 The Superintendent may enter into an agreement, called a "prudential agreement", with an authorized foreign bank for the purposes of implementing any measure designed to protect the interests of its depositors and creditors, establishing adequate policies and procedures to protect it against threats to its integrity or security in relation to its business in Canada or maintaining or improving its adherence to those policies and procedures.

• 305 (1) The portion of subsection 615(1) of the Act before paragraph (a) is replaced by the following:

  Marginal note:Superintendent's directions to authorized foreign bank

  • 615 (1) If, in the opinion of the Superintendent, an authorized foreign bank, or a person with respect to an authorized foreign bank, is committing, or is about to commit, an act that is an unsafe or unsound practice in relation to the business or affairs in Canada of the authorized foreign bank, or is pursuing or is about to pursue any course of conduct that is an unsafe or unsound practice in relation to that business or those affairs, the Superintendent may direct the authorized foreign bank or person to

• (2) Subsection 615(1.1) of the Act is replaced by the following:

  • Marginal note:Directions — policies and procedures

    (1.1) If, in the opinion of the Superintendent, an authorized foreign bank does not have adequate policies and procedures to protect itself against threats to its integrity or security in relation to its business in Canada or does not adhere to those policies and procedures, the Superintendent may direct the authorized foreign bank to take any measures that in the opinion of the Superintendent are necessary to remedy the situation.

306 Paragraph 635(1)(b) of the Act is replaced by the following:

• (b) the bank has adequate policies and procedures to protect itself against threats to its integrity or security and adheres to those policies and procedures.

307 Subsection 636(2) of the Act is amended by adding the following after paragraph (a):

• (a.001) to any federal government agency or body, for purposes related to the Superintendent's regulation or supervision of financial institutions, including purposes related to threats to the integrity or security of financial institutions or risks to national security,

308 Subsection 643(1) of the Act is replaced by the following:

Marginal note:Examination of banks

• 643 (1) The Superintendent, from time to time, but at least once in each calendar year, shall make or cause to be made any examination and inquiry into the business and affairs of each bank that the Superintendent considers to be necessary or expedient to determine whether the bank is complying with the provisions of this Act, whether the bank is in a sound financial condition and whether the bank has adequate policies and procedures to protect itself against threats to its integrity or security and adheres to those policies and procedures. After the conclusion of each examination and inquiry, the Superintendent shall report on it to the Minister.

309 Section 644.1 of the Act is replaced by the following:

Marginal note:Prudential agreement

644.1 The Superintendent may enter into an agreement, called a "prudential agreement", with a bank for the purposes of implementing any measure designed to maintain or improve its safety and soundness, establishing adequate policies and procedures to protect it against threats to its integrity or security or maintaining or improving its adherence to those polices and procedures.

• 310 (1) The portion of subsection 645(1) of the Act before paragraph (a) is replaced by the following:

  Marginal note:Superintendent's directions to bank

  • 645 (1) If, in the opinion of the Superintendent, a bank, or a person with respect to a bank, is committing, or is about to commit, an act that is an unsafe or unsound practice in conducting the business or affairs of the bank, or is pursuing or is about to pursue any course of conduct that is an unsafe or unsound practice in conducting the business or affairs of the bank, the Superintendent may direct the bank or person to

• (2) Subsection 645(1.1) of the Act is replaced by the following:

  • Marginal note:Directions — policies and procedures

    (1.1) If, in the opinion of the Superintendent, a bank does not have adequate policies and procedures to protect itself against threats to its integrity or security or does not adhere to those policies and procedures, the Superintendent may direct the bank to take any measures that in the opinion of the Superintendent are necessary to remedy the situation.

311 Paragraph 954(1)(c) of the Act is replaced by the following:

• (c) determine whether the bank holding company has adequate policies and procedures to protect itself against threats to its integrity or security and adheres to those policies and procedures.

312 Subsection 955(2) of the Act is amended by adding the following after paragraph (a):

• (a.1) to any federal government agency or body, for purposes related to the Superintendent's regulation or supervision of financial institutions, including purposes related to threats to the integrity or security of financial institutions or risks to national security,

313 Subsection 957(1) of the Act is replaced by the following:

Marginal note:Examination of bank holding companies

• 957 (1) The Superintendent, from time to time, shall make or cause to be made any examination and inquiry into the business and affairs of each bank holding company that the Superintendent considers to be necessary or expedient to determine whether the bank holding company is complying with the provisions of this Act and to ascertain the financial condition of the bank holding company or to determine whether the bank holding company has adequate policies and procedures to protect itself against threats to its integrity or security and adheres to those policies and procedures.

314 Section 959 of the Act is replaced by the following:

Marginal note:Prudential agreement

959 The Superintendent may enter into an agreement, called a "prudential agreement", with a bank holding company for the purposes of implementing any measure designed to protect the interests of depositors, policyholders and creditors of any federal financial institution affiliated with it, establishing adequate policies and procedures to protect the bank holding company against threats to its integrity or security or maintaining or improving its adherence to those policies and procedures.

315 Subsection 960(1.1) of the Act is replaced by the following:

• Marginal note:Directions — policies and procedures

  (1.1) If, in the opinion of the Superintendent, a bank holding company does not have adequate policies and procedures to protect itself against threats to its integrity or security or does not adhere to those policies and procedures, the Superintendent may direct the bank holding company to take any measures that in the opinion of the Superintendent are necessary to remedy the situation.

316 Subsection 973.02(1) of the Act is replaced by the following:

Marginal note:Minister — terms, conditions and undertakings

• 973.02 (1) In addition to any other action that may be taken under this Act, the Minister may, in granting an approval, impose any terms and conditions or require any undertaking that the Minister considers appropriate, including any terms, conditions or undertakings specified by the Superintendent to maintain or improve the safety and soundness of any financial institution that is regulated under an Act of Parliament and to which the approval relates, or that might be affected by it, or to ensure that such a financial institution has adequate policies and procedures to protect itself against threats to its integrity or security and adheres to those policies and procedures.

1991, c. 47Insurance Companies Act

317 Paragraph 671(1)(b) of the Insurance Companies Act is replaced by the following:

• (b) the company has adequate policies and procedures to protect itself against threats to its integrity or security and adheres to those policies and procedures.

318 Subsection 672(2) of the Act is amended by adding the following after paragraph (a):

• (a.001) to any federal government agency or body, for purposes related to the Superintendent's regulation or supervision of financial institutions, including purposes related to threats to the integrity or security of financial institutions or risks to national security,

319 Subsection 674(1) of the Act is replaced by the following:

Marginal note:Examination of companies, etc.

• 674 (1) The Superintendent, from time to time, but at least once in each calendar year, shall make or cause to be made any examination and inquiry into the business and affairs of each company, society, foreign company and provincial company that the Superintendent considers to be necessary or expedient to determine whether the company, society, foreign company or provincial company is complying with the provisions of this Act, whether the company, society or provincial company or the insurance business in Canada of the foreign company is in a sound financial condition and whether the company, society or provincial company has adequate policies and procedures to protect itself against threats to its integrity or security and adheres to those policies and procedures or the foreign company has adequate policies and procedures to protect itself against threats to its integrity or security in relation to its business in Canada and adheres to those policies and procedures. After the conclusion of each examination and inquiry, the Superintendent shall report on it to the Minister.

320 Paragraphs 675.1(a) and (b) of the Act are replaced by the following:

• (a) a company, society or provincial company, for the purposes of implementing any measure designed to maintain or improve its safety and soundness, establishing adequate policies and procedures to protect it against threats to its integrity or security or maintaining or improving its adherence to those policies and procedures; or

• (b) a foreign company, for the purposes of implementing any measure designed to protect the interests of its policyholders and creditors in relation to its insurance business in Canada, establishing adequate policies and procedures to protect it against threats to its integrity or security in relation to its business in Canada or maintaining or improving its adherence to those policies and procedures.

• 321 (1) The portion of subsection 676(1) of the Act before paragraph (a) is replaced by the following:

  Marginal note:Superintendent's directions to companies, etc.

  • 676 (1) If, in the opinion of the Superintendent, a company, society, foreign company or provincial company, or a person with respect to a company, society, foreign company or provincial company, is committing, or is about to commit, an act that is an unsafe or unsound practice in conducting the business or affairs of the company, society, foreign company or provincial company, or is pursuing or is about to pursue any course of conduct that is an unsafe or unsound practice in conducting the business or affairs of the company, society, foreign company or provincial company, the Superintendent may direct the company, society, foreign company, provincial company or person to

• (2) Paragraphs 676(1)(a) to (d) of the English version of the Act are replaced by the following:

  • (a) cease or refrain from committing the act or pursuing the course of conduct; and

  • (b) perform such acts as in the opinion of the Superintendent are necessary to remedy the situation.

• (3) Subsection 676(1.1) of the Act is replaced by the following:

  • Marginal note:Directions — policies and procedures

    (1.1) If, in the opinion of the Superintendent, a company, society, or provincial company does not have adequate policies and procedures to protect itself against threats to its integrity or security or does not adhere to those policies or procedures, or a foreign company does not have adequate policies and procedures to protect itself against threats to its integrity or security in relation to its business in Canada or does not adhere to those policies and procedures, the Superintendent may direct the company, society, foreign company or provincial company to take any measures that in the opinion of the Superintendent are necessary to remedy the situation.

322 Paragraph 997(1)(c) of the Act is replaced by the following:

• (c) determine whether the insurance holding company has adequate policies and procedures to protect itself against threats to its integrity or security and adheres to those policies and procedures.

323 Subsection 998(2) of the Act is amended by adding the following after paragraph (a):

• (a.1) to any federal government agency or body, for purposes related to the Superintendent's regulation or supervision of financial institutions, including purposes related to threats to the integrity or security of financial institutions or risks to national security,

324 Subsection 1000(1) of the Act is replaced by the following:

Marginal note:Examination of insurance holding companies

• 1000 (1) The Superintendent, from time to time, shall make or cause to be made any examination and inquiry into the business and affairs of any insurance holding company that the Superintendent considers to be necessary or expedient to determine whether the insurance holding company is complying with the provisions of this Act and to ascertain the financial condition of the insurance holding company or to determine whether the insurance holding company has adequate policies and procedures to protect itself against threats to its integrity or security and adheres to those policies and procedures.

325 Section 1002 of the Act is replaced by the following:

Marginal note:Prudential agreement

1002 The Superintendent may enter into an agreement, called a "prudential agreement", with an insurance holding company for the purposes of implementing any measure designed to protect the interests of depositors, policyholders and creditors of any federal financial institution affiliated with it, establishing adequate policies and procedures to protect the insurance holding company against threats to its integrity or security or maintaining or improving its adherence to those policies and procedures.

326 Subsection 1003(1.1) of the Act is replaced by the following:

• Marginal note:Directions — policies and procedures

  (1.1) If, in the opinion of the Superintendent, an insurance holding company does not have adequate policies and procedures to protect itself against threats to its integrity or security or does not adhere to those policies and procedures, the Superintendent may direct the insurance holding company to take any measures that in the opinion of the Superintendent are necessary to remedy the situation.

327 Subsection 1016.2(1) of the Act is replaced by the following:

Marginal note:Minister — terms, conditions and undertakings

• 1016.2 (1) In addition to any other action that may be taken under this Act, the Minister may, in granting an approval, impose any terms and conditions or require any undertaking that the Minister considers appropriate, including any terms, conditions or undertakings specified by the Superintendent to maintain or improve the safety and soundness of any financial institution that is regulated under an Act of Parliament and to which the approval relates, or that might be affected by it, or to ensure that such a financial institution has adequate policies and procedures to protect itself against threats to its integrity or security and adheres to those polices and procedures.

R.S., c. 18 (3rd Supp.), Part IOffice of the Superintendent of Financial Institutions Act

328 The heading before section 22 of the Office of the Superintendent of Financial Institutions Act is replaced by the following:

Information

329 Subsection 22(2) of the Act is amended by adding the following after paragraph (a):

• (a.001) to any federal government agency or body, for purposes related to the Superintendent's regulation or supervision of financial institutions, including purposes related to threats to the integrity or security of financial institutions or risks to national security,

330 The Act is amended by adding the following after section 22:

Marginal note:For greater certainty

22.1 For greater certainty, the Superintendent may receive any information that is relevant to the exercise of the Superintendent's powers or the performance of the Superintendent's duties or functions.

DIVISION 151991, c. 46Bank Act (Funds Deposited by Cheque)

Amendment to the Act

331 Section 627.22 of the Bank Act is replaced by the following:

Marginal note:First amount available

627.22 An institution shall make the prescribed amount of all funds deposited by a cheque or other instrument into a retail deposit account available for withdrawal immediately or, if there is no prescribed amount, the first $150.

Coming into Force

Marginal note:Order in council

332 This Division comes into force on a day to be fixed by order of the Governor in Council.

DIVISION 161991, c. 46Bank Act (Consumer-targeted Fraud)

Amendments to the Act

333 Subsection 627.01(1) of the Bank Act is amended by adding the following in alphabetical order:

consumer-targeted fraud

consumer-targeted fraud, in relation to a product or service in Canada that is offered, sold or provided by an institution to a natural person other than for business purposes, includes a transaction that is unauthorized or that is authorized as a result of coercion or deception. (fraude ciblant les consommateurs)

334 The Act is amended by adding the following after section 627.13:

Marginal note:Activation of prescribed capability

• 627.131 (1) An institution shall not activate a prescribed capability for a personal deposit account in Canada without first obtaining, in accordance with the regulations, the express consent of the natural person who requested the opening of the account or in whose name it is kept.

• Marginal note:Deactivation of prescribed capability

  (2) An institution shall permit a natural person in whose name a personal deposit account in Canada is kept to deactivate a prescribed account capability.

Marginal note:Limits on withdrawals or transfers

• 627.132 (1) An institution shall permit a natural person in whose name a personal deposit account in Canada is kept to adjust the following limits for each class of withdrawal or transfer of funds that can be made from the account:

  • (a) the maximum amount of a withdrawal or transfer;

  • (b) the number of withdrawals or transfers that can be made in a given period;

  • (c) the maximum amount of all withdrawals or transfers that can be made in a given period; and

  • (d) any prescribed limit.

• Marginal note:Limits set by institution

  (2) An adjusted limit may not, however, exceed any limit set by the institution.

• Marginal note:Prescribed period

  (3) The institution shall ensure that an adjusted limit takes effect within the prescribed period.

Marginal note:Notice

• 627.133 (1) An institution shall, without delay and by electronic means, notify a natural person in whose name a personal deposit account in Canada is kept if

  • (a) an account capability referred to in subsection 627.131(1) is activated;

  • (b) an account capability referred to in subsection 627.131(2) is deactivated; or

  • (c) a limit referred to in subsection 627.132(1) is adjusted.

• Marginal note:Exception

  (2) Subsection (1) does not apply if the natural person has opted out, in writing, of receiving the notice or does not provide the institution with the contact information required to receive it.

Marginal note:Consumer-targeted fraud

• 627.134 (1) An institution shall establish and adhere to policies and procedures to detect and prevent consumer-targeted fraud and to mitigate its impacts.

• Marginal note:Contents

  (2) The policies and procedures shall, together, set out

  • (a) the criteria that the institution uses to decide whether a transaction is suspicious;

  • (b) the criteria that the institution uses to decide whether to suspend or cancel, or take other measures in relation to, a suspicious transaction;

  • (c) how the institution communicates a decision referred to in paragraph (b) to persons affected by a suspension, cancellation or other measure;

  • (d) the criteria that the institution uses to decide whether a natural person is a victim of consumer-targeted fraud and, if so, whether a remedy is available to them;

  • (e) the criteria that the institution uses to decide what types of remedies are available to a natural person who is a victim of consumer-targeted fraud;

  • (f) how the institution communicates a decision referred to in paragraph (e) to a natural person who is a victim of consumer-targeted fraud; and

  • (g) any prescribed criteria.

• Marginal note:Training

  (3) The institution shall provide its employees, representatives, agents or mandataries and other intermediaries who deal with customers who are in Canada with initial and recurrent training on the detection and prevention of consumer-targeted fraud and on the institution's policies and procedures.

• Marginal note:Annual report — institution

  (4) The institution shall, in accordance with the regulations, prepare an annual report on consumer-targeted fraud in Canada and provide it to the Commissioner.

Marginal note:Annual report — Commissioner

• 627.135 (1) The Commissioner shall, in accordance with the regulations, prepare an annual report on the reports provided under subsection 627.134(4) and provide it to the Minister.

• Marginal note:Confidentiality

  (2) Any information in a report referred to in subsection 627.134(4) that could reasonably be expected to reveal the identity of an institution or of a victim of consumer-targeted fraud is confidential and shall be treated accordingly.

335 Section 627.998 of the Act is amended by striking out "and" at the end of paragraph (n) and by adding the following after paragraph (o):

• (p) prescribing account capabilities for the purposes of subsection 627.131(1) or (2);

• (q) respecting the manner in which express consent is to be obtained for the purposes of subsection 627.131(1);

• (r) prescribing limits for the purposes of subsection 627.132(1);

• (s) prescribing periods for the purposes of subsection 627.132(3);

• (t) prescribing criteria that are to be set out in the policies and procedures referred to in subsection 627.134(2);

• (u) respecting the reports that are to be prepared under subsection 627.134(4), including their contents and the time limit for providing them to the Commissioner; and

• (v) respecting the reports that are to be prepared under subsection 627.135(1), including their contents and the time limit for providing them to the Minister.

Coming into Force

Marginal note:Order in council

336 This Division comes into force on a day to be fixed by order of the Governor in Council.

DIVISION 17Supporting Federal Credit Union Growth

R.S., c. C-3Canada Deposit Insurance Corporation Act

• 337 (1) Subsection 12.1(2) of the Canada Deposit Insurance Corporation Act is replaced by the following:

  • Marginal note:Duty to insure certain pre-existing deposits

    (2) Despite paragraph 12(c) and subsection 4(2) of the schedule, but subject to the other provisions of this Act, if a pre-existing deposit is held by a federal credit union that is a member institution and all or a portion of the pre-existing deposit would have been guaranteed or insured under the law of a province if the local cooperative credit society had not been continued as a federal credit union, the Corporation must insure the pre-existing deposit during the transition period up to the amount that would have been guaranteed or insured under the law of that province.

• (2) Subsection 12.1(3) of the Act is repealed.

338 The Act is amended by adding the following after section 12.1:

Marginal note:Definitions

• 12.2 (1) The following definitions apply in this section.

  pre-existing deposit

  pre-existing deposit means a deposit that was made with a local cooperative credit society before the transaction day and that remains outstanding on that day. (dépôt préexistant)

  transaction day

  transaction day, in respect of the assets of a local cooperative credit society acquired by a federal credit union under a purchase agreement referred to in section 236.1 of the Bank Act, means the day on which the acquisition is made. (date de l'opération)

  transition period

  transition period, in respect of a pre-existing deposit, means

  • (a) in the case of a pre-existing deposit that is to be repaid on a fixed day, the period that begins on the transaction day and ends on that fixed day; and

  • (b) in the case of any other pre-existing deposit, the period that begins on the transaction day and ends on the day that is 180 days after that day. (période transitoire)

• Marginal note:Duty to insure certain pre-existing deposits

  (2) Despite paragraph 12(c) and subsection 4(2) of the schedule, but subject to the other provisions of this Act, if a pre-existing deposit is held by a federal credit union that is a member institution and all or a portion of the pre-existing deposit would have been guaranteed or insured under the law of a province if the assets of the local cooperative credit society had not been acquired by the federal credit union, the Corporation must insure the pre-existing deposit during the transition period up to the amount that would have been guaranteed or insured under the law of that province.

• Marginal note:Deemed separate deposit

  (3) During the transition period, a pre-existing deposit, less any withdrawals from the pre-existing deposit, is deemed, for the purposes of deposit insurance with the Corporation, to be a deposit separate from any deposit made on or after the transaction day.

• Marginal note:Deemed withdrawal from pre-existing deposit

  (4) During the transition period, any withdrawal — up to the amount of the pre-existing deposit — is deemed, for the purposes of deposit insurance with the Corporation, to be withdrawn from the pre-existing deposit.

• 339 (1) Subsection 13(1) of the Act is replaced by the following:

  Marginal note:Deposits with amalgamating institutions

  • 13 (1) If a person has deposits with two or more member institutions — including member institutions insured under section 12.1 — that amalgamate and continue in operation as one member institution, in this section referred to as the "amalgamated institution", a deposit of that person with an amalgamating institution on the day on which the amalgamated institution is formed, less any withdrawals from the deposit, shall, for the purposes of deposit insurance with the Corporation, be deemed to be and continue to be separate from any deposit of that person on that day with the other amalgamating institution or institutions that become part of the amalgamated institution for a period of two years or, in the case of a term deposit with a remaining term exceeding two years, to the maturity of the term deposit.

• (2) Section 13 of the Act is amended by adding the following after subsection (5):

  • Marginal note:Deemed amalgamation

    (6) When a federal credit union acquires all or substantially all of the assets of a local cooperative credit society, the transaction is deemed to be an amalgamation of two member institutions for the purposes of this section.

340 The Act is amended by adding the following after section 17:

Marginal note:Insurance of amalgamating institutions

17.01 Despite section 17, the Corporation must, in the manner and to the extent provided in this Act and the by-laws, insure the deposits held by a federal credit union that was a local cooperative credit society prior to the issuance of the letters patent in respect of its continuation for the purposes of amalgamation.

341 The Act is amended by adding the following after section 23:

Marginal note:Calculation of first premium upon acquisition

23.1 When a federal credit union acquires all or substantially all of the assets of a local cooperative credit society, the premium payable by the federal credit union in respect of those assets is calculated in accordance with section 23, which applies, with any necessary modifications, to those assets as if they belonged to a member institution on the day on which the acquisition is made.

342 The schedule to the Act is amended by replacing the references after the heading "SCHEDULE" with the following:

(Section 2, subsections 11(2.1), 12.1(2), 12.2(2) and 14(1.01), sections 25.4 and 26.01 and subsection 45.2(3))

1991, c. 46Bank Act

343 The definition consumer provision in section 2 of the Bank Act is replaced by the following:

consumer provision

consumer provision means a provision referred to in any of paragraphs (a) to (a.2) of the definition consumer provision in section 2 of the Financial Consumer Agency of Canada Act; (disposition visant les consommateurs)

344 The Act is amended by adding the following after section 39.01:

Marginal note:Transitional provision

• 39.011 (1) When the Minister issues letters patent continuing a local cooperative credit society as a federal credit union under subsection 35(1), subject to the regulations, the Minister may, on application and by order, subject to any terms and conditions that the Minister considers appropriate, exempt the resulting federal credit union from the application of one or more provisions of Part XII.2 for a period of up to three years from the day on which its letters patent are issued, if the Minister is of the opinion that the resulting federal credit union has an acceptable plan to bring itself into compliance with Part XII.2 within that period.

• Marginal note:Plan

  (2) The plan referred to in subsection (1) must be approved by the Minister and must set out

  • (a) how the resulting federal credit union would, as soon as reasonably feasible, meet the requirements of any of the provisions referred to in subsection (1); and

  • (b) any alternative requirements that the resulting federal credit union would meet during the period when the plan is in effect.

• Marginal note:Compliance

  (3) During any period in which a provision of Part XII.2 does not apply to a resulting federal credit union, the resulting federal credit union must comply with the plan approved by the Minister under subsection (2).

• Marginal note:Amendment of plan

  (4) The resulting federal credit union may, at any time, seek the Minister's approval to

  • (a) amend the plan; or

  • (b) extend the period of the exemption to end no later than the third anniversary of the day on which its letters patent are issued.

• Marginal note:Regulations and guidelines

  (5) The Governor in Council may make regulations respecting plans under this section, including regulations limiting the provisions of Part XII.2 that may be the subject of an order under subsection (1), and the Commissioner may make guidelines respecting such plans.

• Marginal note:Definition of resulting federal credit union

  (6) In this section, resulting federal credit union means the federal credit union resulting from the continuance, or the continuance and amalgamation, as the case may be, in respect of an application made under subsection 33(2), (3) or (4).

345 The Act is amended by adding the following after section 227:

Marginal note:Simplified amalgamation into federal credit union

• 227.1 (1) A federal credit union may, without complying with sections 224 to 226, amalgamate with one or more local cooperative credit societies that have applied, under subsection 33(3), to be continued as a federal credit union if

  • (a) the total assets of the local cooperative credit societies do not exceed 25% of the assets of the federal credit union;

  • (b) the amalgamation is approved by a resolution of the directors of the federal credit union and by separate special resolutions of the members and shareholders, if any, of each local cooperative credit society;

  • (c) the resolutions provide that

    • (i) the by-laws of the resulting federal credit union, including any by-laws respecting shares, will be the same as those of the federal credit union before the amalgamation, and

    • (ii) the head office of the resulting federal credit union will be in the same province as the head office of the federal credit union before the amalgamation;

  • (d) the amalgamation does not add, change or remove any rights or privileges of any members or shareholders of the federal credit union prior to amalgamation; and

  • (e) a request has not been made under subsection (3).

• Marginal note:Disclosure

  (2) The federal credit union must, in accordance with the regulations, disclose to all its members

  • (a) that the federal credit union has entered into an amalgamation agreement and identify the local cooperative credit societies that are parties to that agreement;

  • (b) that the amalgamation is subject to this section;

  • (c) that the amalgamation is subject to the approval of

    • (i) the members and shareholders, if any, if a request is made under subsection (3),

    • (ii) the members and shareholders, if any, of each local cooperative credit society,

    • (iii) the Minister, and

    • (iv) the applicable provincial regulatory authorities; and

  • (d) any other prescribed information.

• Marginal note:Members' approval

  (3) The amalgamation is not required to be approved by the members of the federal credit union or its shareholders, if any, unless a request that a meeting be held to vote on the amalgamation is made, within the prescribed time, by at least two members entitled to vote at such a meeting, or at least one per cent of the total number of members entitled to vote at such a meeting, whichever is greater.

• Marginal note:Procedure

  (4) A meeting requested under subsection (3) must be called as nearly as possible in the manner in which meetings are to be called under the by-laws and this Act.

• Marginal note:Regulations — disclosure

  (5) The Governor in Council may make regulations respecting

  • (a) the timing, form and content of the disclosure to be provided to members under subsection (2); and

  • (b) the timing of a meeting request under subsection (3).

• Marginal note:Definition of resulting federal credit union

  (6) In this section, resulting federal credit union means the federal credit union resulting from the issuance of letters patent under subsection 223(1.2).

346 Subsection 228(1) of the Act is replaced by the following:

Marginal note:Joint application to Minister

• 228 (1) Subject to subsection (2), unless an amalgamation agreement is terminated in accordance with subsection 226(5), the applicants must, within three months after the approval of the agreement in accordance with subsection 226(4), the approval of the directors in accordance with subsection 227(1) or (2) or the latest of the approvals referred to in paragraph 227.1(1)(b), jointly apply to the Minister for letters patent of amalgamation continuing the applicants as one bank.

347 The Act is amended by adding the following after section 236:

Marginal note:Asset purchase by federal credit union

• 236.1 (1) A federal credit union may acquire all or substantially all of the assets of a local cooperative credit society only if the federal credit union also assumes all or substantially all of the liabilities of the local cooperative credit society.

• Marginal note:Purchase agreement

  (2) An agreement of purchase and sale (referred to in this section as a "purchase agreement") must set out the terms of, and the means of effecting, the acquisition of assets referred to in subsection (1).

• Marginal note:Consideration

  (3) Despite anything in this Act, the consideration for the acquisition of assets referred to in subsection (1) may be cash or fully paid securities of the federal credit union or in part cash and in part fully paid securities of the federal credit union or any other consideration that is provided for in the purchase agreement.

• Marginal note:Agreement to Superintendent

  (4) A purchase agreement must be sent to the Superintendent before it is submitted to the members or shareholders, as applicable, of the local cooperative credit society for their approval under the laws of the relevant province.

• Marginal note:Application to Minister

  (5) An application for the Minister's approval of a purchase agreement must be filed with the Superintendent by the federal credit union or the local cooperative credit society and must contain the information, material and evidence that the Superintendent may require.

• Marginal note:Receipt

  (6) If the Superintendent is of the opinion that the application includes all the required information, material and evidence, the Superintendent must certify receipt of the application.

• Marginal note:Approval by Minister

  (7) The Minister may approve a purchase agreement if the Minister is of the opinion that

  • (a) the local cooperative credit society has complied with the applicable requirements set out in regulations made under subsection (12);

  • (b) the purchase agreement has been approved by separate special resolutions of the members and shareholders, if any, of the local cooperative credit society; and

  • (c) the local cooperative credit society has obtained all of the approvals required for the sale under the laws of the relevant province.

• Marginal note:Minister's decision

  (8) The Minister must make a decision in respect of the application within 45 days of the day on which the Superintendent certifies receipt of it, but the Minister may extend this period for an additional 45 days if the Minister considers it appropriate to do so.

• Marginal note:Effect of approval by Minister

  (9) A purchase agreement has no force or effect until it has been approved by the Minister.

• Marginal note:Transitional relief

  (10) The Minister may, by order, grant to the federal credit union the transitional relief set out under section 39.011 or 231, subject to the same conditions set out in those sections.

• Marginal note:Additional directors

  (11) When a federal credit union enters into a purchase agreement with a local cooperative credit society, the federal credit union may appoint one or more directors of the local cooperative credit society to serve as additional directors for a term expiring not later than the close of the federal credit union's next annual meeting.

• Marginal note:Regulations

  (12) The Governor in Council may make regulations respecting notice and disclosure requirements in respect of a purchase agreement under this section, including regulations that authorize the Minister to grant exemptions from those requirements.

348 The Act is amended by adding the following after section 417:

Marginal note:Federal credit union

• 417.1 (1) Despite section 417, if, on the day before the day on which a local cooperative credit society is continued as a federal credit union under this Act, the local cooperative credit society or its subsidiary is engaging in any of the following activities, the federal credit union may, with the Minister's approval, engage in that activity:

  • (a) the leasing of motor vehicles in Canada for the purpose of extending credit to a customer or financing a customer's acquisition of a motor vehicle;

  • (b) providing temporary possession of motor vehicles to customers in Canada for a purpose other than to finance a customer's acquisition of a motor vehicle.

• Marginal note:Amalgamation

  (2) Despite section 417, if, on the day before the day on which it amalgamates with another federal credit union under this Act, a federal credit union or its subsidiary is engaging in an activity referred to in paragraph (1)(a) or (b), the federal credit union resulting from that amalgamation may, with the Minister's approval, engage in that activity.

• Marginal note:Past continuation

  (3) A federal credit union may, with the Minister's approval, engage in an activity referred to in paragraph (1)(a) or (b) if

  • (a) the federal credit union was continued from a local cooperative credit society before the day on which this subsection comes into force; and

  • (b) the local cooperative credit society, or its subsidiary, was engaging in the activity on the day before it was continued.

• Marginal note:Conditions

  (4) The Minister may, in granting an approval under this section, impose any terms and conditions, including limits on where the activity may be engaged in and what types of motor vehicles and how many of those vehicles may be leased, or require any undertaking that the Minister considers appropriate.

349 Paragraph 468(2)(a) of the Act is replaced by the following:

• (a) engaging in any financial service activity that a bank is permitted to engage in under any of paragraphs 409(2)(a) to (d) or any other activity that a bank is permitted to engage in under section 410 or 411 or that a federal credit union is permitted to engage in under section 417.1;

350 Paragraph 482(2)(g) of the Act is replaced by the following:

• (g) assets purchased or sold under a sale agreement that is approved by the Minister under section 236 or a purchase agreement that is approved by the Minister under section 236.1;

2001, c. 9Financial Consumer Agency of Canada Act

351 The definition consumer provision in section 2 of the Financial Consumer Agency of Canada Act is amended by adding the following after paragraph (a.1):

• (a.2) the provisions contained in a plan approved by the Minister under subsection 39.011(2) of the Bank Act;

Coming into Force

Marginal note:Order in council

352 The provisions of this Division, other than section 337, subsection 339(1) and sections 340, 343, 344, 348, 349 and 351, come into force on a day or days to be fixed by order of the Governor in Council.

DIVISION 181992, c. 17Special Economic Measures Act

Amendments to the Act

353 The Special Economic Measures Act is amended by adding the following after section 3.1:

PART 1Measures in Relation to Foreign States

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

• Marginal note:Consultation with Minister of Finance

  (2.1) The Minister of Finance must be consulted before an order or regulation is made under subsection (1) if any of the following persons would be identified in the order or regulation:

  • (a) a foreign entity that is identified by the Financial Stability Board as a global systemically important bank;

  • (b) a foreign institution, as defined in section 2 of the Bank Act, that carries on business in Canada;

  • (c) a foreign payment service provider, as defined in section 2 of the Retail Payment Activities Act, that directs retail payment activities, as defined in that section, at persons that are in Canada;

  • (d) a central bank of a foreign state;

  • (e) a foreign entity that operates a stock exchange or a clearing and settlement system.

355 Subsection 6(1) of the Act is replaced by the following:

Marginal note:Minister of Foreign Affairs

• 6 (1) Subject to subsection (2), the Minister of Foreign Affairs is responsible for the administration and enforcement of this Act other than Part 2.

356 The Act is amended by adding the following after section 12:

PART 2Obligations Specific to Financial Institutions

Definitions

Marginal note:Definitions

13 The following definitions apply in this Part.

federal financial institution

federal financial institution means a financial institution, as defined in section 3 of the Office of the Superintendent of Financial Institutions Act. (institution financière fédérale)

foreign property

foreign property means any property that is situated in Canada and that is owned — or is held or controlled, directly or indirectly — by a person, including a foreign state, that is identified in an order or regulation made under subsection 4(1). (bien étranger)

Regulations and Orders

Marginal note:Requirement to provide information

• 14 (1) On the recommendation of the Minister of Finance made after that Minister has consulted with the Minister of Foreign Affairs, the Governor in Council may make regulations requiring that a federal financial institution provide the Minister of Finance with information on

  • (a) any foreign property that is in the federal financial institution's possession or control; and

  • (b) any profits that the federal financial institution realizes from such foreign property.

• Marginal note:Rules

  (2) The regulations may include rules respecting

  • (a) the manner of determining the amount of any profits;

  • (b) the non-application of the regulations to any foreign property or profits;

  • (c) the time within which and the manner in which information must be provided; and

  • (d) any other matter related to the administration of the regulations.

Marginal note:Direction to pay

• 15 (1) The Minister of Finance may make an order directing a specified federal financial institution to pay to the Receiver General any profits realized from foreign property that is in the federal financial institution's possession or control, in the amount that is specified in the order or determined in the manner set out in the order.

• Marginal note:Rules

  (2) The order may include rules respecting

  • (a) the time within which and the manner in which the profits must be paid; and

  • (b) any other matter related to the administration of the order.

• Marginal note:Debt to His Majesty

  (3) An amount payable under the order and any costs incurred by or on behalf of His Majesty in right of Canada in relation to recovering the amount are the liability of the federal financial institution that is required to pay the amount and constitute a debt due to His Majesty in right of Canada that may be recovered in any court of competent jurisdiction.

• Marginal note:Statutory Instruments Act

  (4) The order is not a statutory instrument for the purposes of the Statutory Instruments Act.

Administration and Enforcement

Marginal note:Minister of Finance

16 The Minister of Finance is responsible for the administration and enforcement of this Part.

Marginal note:Sharing of information

17 The Minister of Foreign Affairs, any Minister designated under subsection 6(2) or (3), the Superintendent of Financial Institutions and the Director of the Canadian Security Intelligence Service may assist the Minister of Finance in matters relating to the making, administration or enforcement of regulations referred to in subsection 14(1) or an order referred to in subsection 15(1) and, for that purpose, those persons and the Minister of Finance may collect information from and disclose information to each other.

Marginal note:Disclosure to RCMP or FINTRAC

18 The Minister of Finance may disclose to the Royal Canadian Mounted Police or the Financial Transactions and Reports Analysis Centre of Canada any information that is relevant to the making, administration or enforcement of regulations referred to in subsection 14(1) or an order referred to in subsection 15(1).

Marginal note:RCMP

19 At the request of the Minister of Finance, the Commissioner of the Royal Canadian Mounted Police may, for the purposes of this Part, disclose to the Minister of Finance any information received from a federal financial institution under an order or regulation made under Part 1.

357 The Act is amended by replacing "this Act" and "the Act" with "this Part" in the following provisions:

• (a) paragraphs 4(4)(a) and (b) and subsection 4(5);

• (b) subsections 6(2) and (3);

• (c) subsection 7(9);

• (d) subsection 9(1) and paragraphs 9(2)(a) to (c);

• (e) subsection 10(1);

• (f) subsections 11(1) and (2); and

• (g) section 12.

Transitional Provision

Marginal note:Profits realized before coming into force

358 A regulation or order may be made under Part 2 of the Special Economic Measures Act with respect to any profits referred to in that Part that are realized before the day on which this section comes into force only if the profits are realized from property that is owned — or held or controlled, directly or indirectly — by Russia, as defined in section 1 of the Special Economic Measures (Russia) Regulations, or by a person who is identified in those Regulations.

2000, c. 17; 2001, c. 41, s. 48Related and Consequential Amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act

359 The definition sanctions evasion offence in subsection 2(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act is replaced by the following:

sanctions evasion offence

sanctions evasion offence means an offence arising from the contravention of a restriction or prohibition established by an order or regulation made under the United Nations Act, under Part 1 of the Special Economic Measures Act or under the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law). (infraction de contournement de sanctions)

360 Paragraph 7.1(1)(c) of the Act is replaced by the following:

• (c) an order or regulation made under Part 1 of the Special Economic Measures Act; or

361 Paragraph 11.11(1)(b.1) of the Act is replaced by the following:

• (b.1) a person or entity that is subject to a prohibition on financial or related services under Part 1 of the Special Economic Measures Act;

362 The Act is amended by adding the following after section 53.6:

Marginal note:Special Economic Measures Act, Part 2

53.7 At the request of the Minister or an officer of the Department of Finance, the Director shall, for the purposes of Part 2 of the Special Economic Measures Act, disclose to the Minister or the officer any information received by the Centre under paragraph 7.1(1)(c) from a financial institution, as defined in section 3 of the Office of the Superintendent of Financial Institutions Act.

DIVISION 19Basic Pension and Accommodation and Meals Charge

R.S., c. P-6Pension Act

363 Section 74 of the Pension Act is amended by adding the following in alphabetical order:

covered period

covered period means the period beginning on April 1, 1985 and ending on December 31, 2026. (période visée)

364 The Act is amended by adding the following after section 74:

Marginal note:Basic pension — covered period

74.1 For the covered period, the basic pension payable as of a date set out in column 1 of Schedule IV is deemed to have been the basic pension set out in column 2 for that date.

Marginal note:Related amounts — covered period

74.2 For the covered period, the following amounts are deemed to have been calculated on the basis of the adjustments to the basic pension referred to in section 74.1:

• (a) any amount that, under this Act, as it read before the coming into force of this section, or under any other Act of Parliament, was to have been adjusted at the same times and by the same percentage as the basic pension; and

• (b) any amount that, under this Act, as it read before the coming into force of this section, or under any other Act of Parliament, was to have been determined on the basis of the basic pension or an amount referred to in paragraph (a).

Marginal note:Conflict or inconsistency

74.3 In the event of a conflict or inconsistency between sections 74.1 and 74.2 and any other provision of this Act or a provision of any other Act of Parliament, or of any regulation made under this or any other Act of Parliament, sections 74.1 and 74.2 prevail.

• 365 (1) The portion of subsection 75(1) of the Act before paragraph (a) is replaced by the following:

  Marginal note:Annual adjustment of basic pension

  • 75 (1) Beginning on January 1, 2027, the basic pension shall be adjusted annually in the manner prescribed by regulation of the Governor in Council, so that the basic pension payable for a month in the following calendar year is the greater of

• (2) Section 75 of the Act is amended by adding the following after subsection (3):

  • Definition of province

    (4) In paragraph (1)(b), province does not include Yukon, the Northwest Territories or Nunavut and is deemed never to have included them.

366 The Act is amended by adding the following after section 91:

Marginal note:Regulations — paragraph 75(1)(b)

91.1 The Governor in Council may make regulations for the purposes of paragraph 75(1)(b), including regulations respecting the determination of

• (a) the average annual gross composite wage of categories of unskilled members of the federal public administration designated by the Minister; and

• (b) income tax for a single person calculated in the province with the lowest combined provincial and federal income tax rate.

Marginal note:Amendments to Schedule IV

91.2 The Governor in Council may, by regulation, amend Schedule IV by

• (a) adding "January 1, 2026" to column 1 and the basic pension for that date in column 2; and

• (b) varying any basic pension set out in column 2.

Marginal note:Retroactive effect

91.3 Regulations made under section 91 for the purposes of section 75 and regulations made under section 91.1 or 91.2 may, if they so provide, have retroactive effect.

367 Schedule I to the Act is amended by replacing the reference after the heading "SCHEDULE I" with the following:

(Subsection 3(1), paragraphs 21(1)(a) and (2)(a), subsections 21(5), 34(6) and (7), paragraph 34(12)(a), section 41, subsections 42(3) and (5), 45(2), (2.1), (3), (3.01) and (3.1), 48(5), 49(1) and (2), 50(1) and 55(2), sections 70 and 71, subsections 71.1(1) and 71.2(2), paragraph 72(1)(a), section 74, subsection 75(3) and section 78)

368 Schedule II to the Act is amended by replacing the references after the heading "SCHEDULE II" with the following:

(Paragraphs 21(1)(b) and (i) and (2)(b) and (d), subsections 34(6) and (11), subparagraph 34(12)(a)(i), subsections 45(2), (2.1) and (3.3), section 46, subsections 47(3) and 52(1), paragraph 52(2)(a), subsections 52(4), 53(2), (5) and (6) and 55(2), sections 70 and 71, subsection 75(3) and section 78)

369 Schedule III to the Act is amended by replacing the references after the heading "SCHEDULE III" with the following:

(Subsections 38(1), (4) ,(5) , (7) and (8), 55(2), 72(1) and 75(3))

370 The Act is amended by adding, after Schedule III, the Schedule IV set out in Schedule 4 to this Act.

R.S., c. R-11Royal Canadian Mounted Police Superannuation Act

371 The Royal Canadian Mounted Police Superannuation Act is amended by adding the following after section 34:

Marginal note:Annual adjustment

34.1 Beginning on January 1, 2027, the following benefits are to be adjusted annually only on the basis of the Consumer Price Index:

• (a) an award granted under section 32 or 32.1; and

• (b) any compensation granted under section 5 of the Royal Canadian Mounted Police Pension Continuation Act that is determined on the basis of rates provided for under the Pension Act.

Marginal note:Regulations

• 34.2 (1) The Governor in Council may make regulations respecting the annual adjustment of the benefits referred to in section 34.1.

• Marginal note:Retroactive effect

  (2) Regulations made under subsection (1) may, if they so provide, have retroactive effect.

R.S., c. V-1; 2000, c. 34, s. 95(F)Department of Veterans Affairs Act

372 The Department of Veterans Affairs Act is amended by adding the following after section 5:

Marginal note:Veterans Health Care Regulations

• 5.01 (1) The Governor in Council may make regulations defining "province" for the purposes of any provision of the Veterans Health Care Regulations.

• Marginal note:Retroactive effect

  (2) Regulations made under subsection (1) may, if they so provide, have retroactive effect.

SOR/90-594Veterans Health Care Regulations

373 For the period beginning on April 1, 1993 and ending on July 15, 1998, the term "province" in paragraph 20(5)(a), subparagraph 20(6)(b)(i) and paragraphs 23(5)(a) and (6)(a) of the Veterans Health Care Regulations is deemed to have referred only to Ontario, Quebec, Nova Scotia, New Brunswick, Manitoba, British Columbia, Prince Edward Island, Saskatchewan, Alberta or Newfoundland and Labrador.

374 Section 33.1 of the Regulations is amended by adding the following after subsection (4):

• (4.1) In paragraph (4)(a), province means Ontario, Quebec, Nova Scotia, New Brunswick, Manitoba, British Columbia, Prince Edward Island, Saskatchewan, Alberta or Newfoundland and Labrador.

Coming into Force

Marginal note:January 2, 2026 or royal assent

• 375 (1) Sections 363 to 370 come into force on the later of January 2, 2026 and the day on which this Act receives royal assent.

• Marginal note:July 15, 1998

  (2) Section 374 is deemed to have come into force on July 15, 1998.

DIVISION 20Earnings Loss Benefit

SOR/2006-50; SOR/2017-161, s. 1Veterans Well-being Regulations

• 376 (1) Section 21 of the Veterans Well-being Regulations is amended by adding the following after subsection (1):

  • (1.1) For the purposes of subsection (1), the first annual adjustment to the monthly military salary shall be prorated to the number of days remaining in the calendar year as of the day on which the adjustment begins.

  • (1.2) For the purposes of subsection (1.1), the day on which the adjustment begins is the day after the day on which the member or veteran is released from the regular force or reserve force, on which they complete their Class C Reserve Service or on which they die, as the case may be.

• (2) Subsection 21(1.2) of the Regulations is replaced by the following:

  • (1.2) For the purposes of subsection (1.1), the day on which the adjustment begins is the day after the day on which the member or veteran is released from the regular force, on which they complete their Class B Reserve Service of more than 180 days or Class C Reserve Service or on which they die, as the case may be.

• (3) Subsection 21(1.2) of the Regulations is replaced by the following:

  • (1.2) For the purposes of subsection (1.1), the day on which the adjustment begins is the day after the day on which the member or veteran is released from the regular force, on which they complete their Class A Reserve Service, Class B Reserve Service or Class C Reserve Service or on which they die, as the case may be.

• (4) Subsections 21(1.1) and (1.2) of the Regulations are repealed.

• 377 (1) Section 27 of the Regulations is amended by adding the following after subsection (1):

  • (1.1) For the purposes of subsection (1), the first annual adjustment to the value of variable A and variable B described in subsection 19(1) of the Act shall be prorated to the number of days remaining in the calendar year as of the day on which the earnings loss benefit begins to be payable.

• (2) Subsection 27(1.1) of the Regulations is repealed.

• (3) Section 27 of the Regulations is amended by adding the following after subsection (2):

  • (2.1) For the purposes of subsection (2), the first annual adjustment to the value of the benefit referred to in subsection 23(1) of the Act and to the amount determined under subsection 23(3) of the Act shall be prorated to the number of days remaining in the calendar year as of the day on which the earnings loss benefit begins to be payable.

• (4) Subsection 27(2.1) of the Regulations is repealed.

Regulations

Marginal note:Regulations — earnings loss benefit

• 378 (1) The Governor in Council may make regulations respecting the earnings loss benefit under the Veterans Well-being Act, as it read from time to time before April 1, 2019.

• Marginal note:Retroactive effect

  (2) Regulations made under subsection (1) may, if they so provide, have retroactive effect.

Coming into Force

Marginal note:April 1, 2006

• 379 (1) Subsections 376(1) and 377(1) and (3) are deemed to have come into force on April 1, 2006.

• Marginal note:October 3, 2011

  (2) Subsection 376(2) is deemed to have come into force on October 3, 2011.

• Marginal note:April 1, 2015

  (3) Subsection 376(3) is deemed to have come into force on April 1, 2015.

• Marginal note:April 1, 2019

  (4) Subsections 376(4) and 377(2) and (4) are deemed to have come into force on April 1, 2019.

DIVISION 21R.S., c. R-11Royal Canadian Mounted Police Superannuation Act

Amendments to the Act

380 Paragraph 32.12(1)(c) of the English version of the Royal Canadian Mounted Police Superannuation Act is replaced by the following:

• (c) the Minister of Public Safety and Emergency Preparedness is of the opinion that that deployment has exposed or may expose those members to conditions of elevated risk.

381 Section 32.2 of the Act is replaced by the following:

Marginal note:Pension Act

32.2 All claims for awards under this Part shall be dealt with and determined by the Minister as defined in subsection 3(1) of the Pension Act in the same manner as claims under that Act. All provisions of that Act that are not inconsistent with this Part apply, with any necessary modifications, to any claim under this Part.

Marginal note:Disclosure of information

• 32.3 (1) The Minister as defined in subsection 3(1) of the Pension Act, the Minister of Public Safety and Emergency Preparedness and the Commissioner of the Force may disclose information to each other for the purposes of this Part.

• Marginal note:Administration and management of Force

  (2) The Minister as defined in subsection 3(1) of the Pension Act may disclose information to the Minister of Public Safety and Emergency Preparedness and the Commissioner of the Force for the purpose of the administration and management of the Force.

Related Provisions

Marginal note:Definitions

382 The following definitions apply in sections 383 and 384.

Act

Act means the Royal Canadian Mounted Police Superannuation Act. (Loi)

coming-into-force day

coming-into-force day means the day on which this Act receives royal assent. (date d'entrée en vigueur)

Marginal note:Retroactive authorization — claims

383 The Minister of Veterans Affairs is retroactively authorized to deal with and determine all claims for an award that were made under Part II of the Act before the coming-into-force day.

Marginal note:Retroactive authorization — disclosure

384 Any disclosure of information that occurred before the coming-into-force day and that would be authorized under section 32.3 of the Act if it occurred on or after that day is retroactively authorized.

Marginal note:For greater certainty

385 For greater certainty, on the first day on which both this Division and section 112 of the Public Complaints and Review Commission Act are in force, that section 112 operates so as to replace every reference to "Force" with a reference to "RCMP" in the English version of the provisions enacted by this Division.

DIVISION 22Canada Development Investment Corporation Act

Enactment of Act

Marginal note:Enactment

386 The Canada Development Investment Corporation Act is enacted as follows:

An Act to continue the Canada Development Investment Corporation

Short Title

Marginal note:Short title

1 This Act may be cited as the Canada Development Investment Corporation Act.

Interpretation

Marginal note:Definitions

2 The following definitions apply in this Act.

agent corporation

agent corporation has the same meaning as in subsection 83(1) of the Financial Administration Act. (société mandataire)

Board

Board means the board of directors of the Corporation. (conseil)

Corporation

Corporation means the Canada Development Investment Corporation continued under section 5. (Corporation)

director

director means a member of the Board. (administrateur)

designated Minister

designated Minister means the Minister of Finance or, if another federal minister is designated under section 4, that minister. (ministre désigné)

wholly-owned subsidiary

wholly-owned subsidiary has the same meaning as in subsection 83(1) of the Financial Administration Act. (filiale à cent pour cent)

Marginal note:Inconsistency

3 In the event of any inconsistency between this Act and Part X of the Financial Administration Act, this Act prevails to the extent of the inconsistency.

Designation of Minister

Marginal note:Order in council

4 The Governor in Council may, by order, designate any federal minister to be the designated Minister referred to in this Act.

Continuation and Status

Marginal note:Continuation

5 The Canada Development Investment Corporation, incorporated under the Canada Business Corporations Act, is continued as a corporation under this Act.

Marginal note:Head office

6 The head office of the Corporation is to be in Toronto unless the Governor in Council by order designates another place in Canada.

Marginal note:Agent of His Majesty

7 The Corporation is for all purposes an agent of His Majesty in right of Canada.

Marginal note:Contracts

8 The Corporation, or any of its subsidiaries that are an agent of His Majesty in right of Canada, may enter into contracts with His Majesty as though they were not an agent of His Majesty.

Marginal note:Capacity

9 In carrying out its purpose, the Corporation has the capacity, rights, powers and privileges of a natural person.

Mandate and Activities

Marginal note:Mandate

• 10 (1) The mandate of the Corporation is to assist in the creation and development of businesses, resources, property and industries of Canada.

• Marginal note:Commercial manner

  (2) In carrying out its mandate, the Corporation must conduct all of its activities in the best interests of Canada and must do so in a commercial manner.

Marginal note:Scope of activities

11 In carrying out its mandate, the Corporation

• (a) may provide advice and support to the Government of Canada, including to ministers of His Majesty in right of Canada, to departments, commissions, boards and agencies of the Government of Canada and to Crown corporations as defined in subsection 83(1) of the Financial Administration Act, respecting financial, commercial, economic and strategic matters arising in Canada or relating to Canada's interests;

• (b) may invest in entities owning property or carrying on business related to the economic interests of Canada, including by acquiring their shares or securities;

• (c) may invest in ventures or enterprises, including through the acquisition of property, likely to benefit Canada;

• (d) may do all things that are necessary for the management, control or disposal of its assets or those assigned to it by the Government of Canada; and

• (e) is to perform any duties or functions required to be performed by the Corporation under any other Act.

Board, Chief Executive Officer and Employees

Marginal note:Composition of Board

12 The Board consists of a chairperson, the chief executive officer and at least 2 but not more than 10 other directors.

Marginal note:Appointment — directors

• 13 (1) Each director, other than the chairperson and the chief executive officer, is to be appointed by the designated Minister, with the approval of the Governor in Council, to hold office during pleasure for a term of not more than four years such that, to the extent possible, the terms of office of not more than one half of the directors end in any one year.

• Marginal note:Appointment — chairperson and chief executive officer

  (2) The chairperson and chief executive officer are to be appointed by the Governor in Council, after consultation by the designated Minister with the Board, to hold office during pleasure for terms that the Governor in Council considers appropriate.

• Marginal note:Absence or incapacity — chairperson

  (3) If the chairperson is absent or unable to act or if the office of chairperson is vacant, the Board may authorize one of the other directors to act as chairperson, but that person is not authorized to act as chairperson for a period of more than 90 days without the approval of the Governor in Council.

• Marginal note:Absence or incapacity — chief executive officer

  (4) If the chief executive officer is absent or unable to act or if the office of chief executive officer is vacant, the Board may authorize an officer or employee of the Corporation to act as chief executive officer, but that person is not authorized to act as chief executive officer for a period of more than 90 days without the approval of the Governor in Council.

• Marginal note:Ceasing to hold office

  (5) The Governor in Council may terminate the appointment of, or remove or suspend, any director.

• Marginal note:No overlapping offices

  (6) A person is not entitled to hold the offices of chairperson and chief executive officer at the same time.

• Marginal note:Reappointment

  (7) The chairperson and chief executive officer are eligible to be reappointed.

• Marginal note:Continuation in office

  (8) Despite subsection (1), if a director, other than the chairperson and chief executive officer, is not appointed to take office when the term of an incumbent director ends, the incumbent director continues in office until their successor is appointed.

Marginal note:Compensation

14 The directors and employees of the Corporation, or of any of its wholly-owned subsidiaries that are agent corporations, are deemed to be employees for the purposes of the Government Employees Compensation Act and to be employed in the federal public administration for the purposes of any regulations made under section 9 of the Aeronautics Act.

Powers

Marginal note:Non-application

15 Section 91 of the Financial Administration Act does not apply in respect of the Corporation or any of its wholly-owned subsidiaries.

Marginal note:Concurrence required

16 The Corporation and any of its wholly-owned subsidiaries must not procure the incorporation, dissolution or amalgamation of their subsidiaries, or acquire or dispose of any shares in their subsidiaries, without the concurrence of the designated Minister, unless they are already exempted under another Act of Parliament from the application of section 91 of the Financial Administration Act in respect of that transaction.

Marginal note:Guarantees

• 17 (1) The Corporation and any of its wholly-owned subsidiaries that are agent corporations are authorized to give guarantees in relation to any person in accordance with any terms or conditions specified by the Minister of Finance.

• Marginal note:Exclusion

  (2) In calculating any applicable limit on the total value of the guarantees that the Corporation or any of its wholly-owned subsidiaries that are agent corporations are authorized to give under subsection (1) or under any other Act of Parliament, the value of any guarantees that the Corporation or subsidiary has insured or reinsured or with respect to which the Corporation or subsidiary has a right, by agreement, to be indemnified must not be taken into account.

Marginal note:Disposal and lease of property

18 The Corporation, or any of its wholly-owned subsidiaries that are agent corporations, may sell or otherwise dispose of or lease any property they hold and may retain and use the proceeds of the disposal or lease.

Miscellaneous Provisions

Marginal note:Not an agent

19 If a subsidiary of the Corporation is not expressly declared by or under any other Act of Parliament to be an agent of the Crown, the Governor in Council may, by order, declare that it is not an agent of His Majesty in right of Canada.

Marginal note:Wholly-owned subsidiary — delay

20 Despite the definition wholly-owned subsidiary in subsection 83(1) of the Financial Administration Act, any entity that becomes a wholly-owned subsidiary of the Corporation — through the realization of a security interest or through anything done under the Companies' Creditors Arrangement Act or any other similar Act of Parliament or law of any foreign jurisdiction — is deemed not to be a wholly-owned subsidiary of the Corporation for 180 days, or any longer period specified by the Governor in Council, beginning on the day on which it becomes a wholly-owned subsidiary of the Corporation.

Marginal note:Privileged information

• 21 (1) Subject to subsection (2), any information obtained by the Corporation or any of its subsidiaries in relation to entities in which they hold investments, other than wholly-owned subsidiaries, is privileged and a director, officer, employee or agent or mandatary of or adviser or consultant to the Corporation or any of its subsidiaries must not knowingly communicate, disclose or make available the information or permit it to be communicated, disclosed or made available.

• Marginal note:Authorized disclosure

  (2) Privileged information may be communicated, disclosed or made available if

  • (a) it is communicated, disclosed or made available for the purpose of the administration or enforcement of this Act and any related legal proceedings;

  • (b) it is communicated, disclosed or made available for the purpose of prosecuting an offence under any other Act of Parliament;

  • (c) it is communicated, disclosed or made available to the Minister of National Revenue solely for the purpose of administering or enforcing the Income Tax Act or the Excise Tax Act; or

  • (d) it is communicated, disclosed or made available with the written consent of the person to which it relates.

Capital of the Corporation

Marginal note:Authorized capital

• 22 (1) The authorized capital of the Corporation is an amount determined by the Minister of Finance, divided into shares with a par value of $100 each.

• Marginal note:Subscription and payment for shares

  (2) If the Board recommends that the designated Minister subscribe for unissued shares of the Corporation, the designated Minister may, with the concurrence of the Minister of Finance if the designated Minister is not the Minister of Finance, subscribe at par for the number of shares that the designated Minister considers desirable, and the amount of each subscription is to be paid to the Corporation out of the Consolidated Revenue Fund at the times and in the amounts that the Board requires.

• Marginal note:Shares not transferable

  (3) The shares of the capital stock of the Corporation are not transferable and are to be held in trust for His Majesty in right of Canada.

Marginal note:Loans to Corporation

23 At the request of the Corporation, the Minister of Finance may lend money to the Corporation out of the Consolidated Revenue Fund on the terms and conditions that the Minister of Finance fixes.

Transitional Provisions

Definition of former Corporation

24 In sections 26 and 27, former Corporation means the Canada Development Investment Corporation incorporated under the Canada Business Corporations Act.

Marginal note:Copy of order provided to Director

• 25 (1) The designated Minister must provide the Director, as defined in subsection 2(1) of the Canada Business Corporations Act, with a copy of the order made under section 388 of the Budget 2025 Implementation Act, No. 1.

• Marginal note:Deeming

  (2) For the purposes of the Canada Business Corporations Act, the copy of the order is deemed to be a satisfactory notice referred to in subsection 188(7) of that Act.

Marginal note:Transfer of shares

26 If the designated Minister is not the Minister of Finance, the Minister of Finance must transfer all the shares of the former Corporation to the designated Minister to hold in trust for His Majesty in right of Canada.

Marginal note:Rights preserved

27 For greater certainty,

• (a) subject to subsection 13(5), the directors of the former Corporation, including the chairperson and chief executive officer, who hold office immediately before the day on which this section comes into force continue to hold that office in the Corporation for the remainder of the term for which they were appointed;

• (b) the property and rights of the former Corporation are the property and rights of the Corporation;

• (c) the Corporation is liable for the obligations of the former Corporation;

• (d) unless the context otherwise requires, every reference to the former Corporation in any contract, instrument or act or other document executed or signed by the former Corporation is to be read as a reference to the Corporation;

• (e) an existing cause of action, claim or liability to prosecution relating to the former Corporation is unaffected;

• (f) a civil, criminal or administrative action or proceeding pending by or against the former Corporation may be continued by or against the Corporation;

• (g) a conviction against, or ruling, order or judgment in favour of or against, the former Corporation may be enforced by or against the Corporation; and

• (h) the by-laws of the former Corporation continue as the by-laws of the Corporation.

Marginal note:Retroactivity

28 Section 8 and subsection 17(2) are deemed to have applied to the subsidiary referred to in section 261 of the Budget Implementation Act, 2024, No. 1 as of December 16, 2024.

R.S., c. A-1Consequential Amendment to the Access to Information Act

387 Schedule II to the Access to Information Act is amended by adding, in alphabetical order, a reference to

• Canada Development Investment Corporation Act

  Loi sur la Corporation de développement des investissements du Canada

and a corresponding reference to "section 21".

Coming into Force

Marginal note:Order in council

388 This Division comes into force on a day to be fixed by order of the Governor in Council.

DIVISION 232000, c. 5Personal Information Protection and Electronic Documents Act

Amendments to Act

389 The Personal Information Protection and Electronic Documents Act is amended by adding the following after section 10.3:

DIVISION 1.2Mobility of Personal Information

Marginal note:Data mobility framework

10.4 Subject to the regulations, on the request of an individual, an organization shall, as soon as feasible, disclose the personal information that it has collected from the individual to an organization designated by the individual if both organizations are subject to a data mobility framework.

Marginal note:Regulations

10.5 The Governor in Council may make regulations respecting the disclosure of personal information under section 10.4, including regulations

• (a) respecting data mobility frameworks and prescribing

  • (i) safeguards that must be put in place by organizations to enable the secure disclosure of personal information under section 10.4 and the secure collection of that information, and

  • (ii) parameters for the technical means for ensuring interoperability in respect of the disclosure and collection of that information;

• (b) specifying organizations that are subject to a data mobility framework; and

• (c) providing for exceptions to the requirement to disclose personal information, including exceptions related to the protection of proprietary or confidential commercial information.

Marginal note:Distinguishing among classes

10.6 Regulations made under section 10.5 may distinguish among different classes of activities, information or organizations.

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

Marginal note:Contravention

• 11 (1) An individual may file with the Commissioner a written complaint against an organization for contravening a provision of Division 1, 1.1 or 1.2 or for not following a recommendation set out in Schedule 1.

391 Subsection 14(1) of the Act is replaced by the following:

Marginal note:Application

• 14 (1) A complainant may, after receiving the Commissioner's report or being notified under subsection 12.2(3) that the investigation of the complaint has been discontinued, apply to the Court for a hearing in respect of any matter in respect of which the complaint was made, or that is referred to in the Commissioner's report, and that is referred to in clause 4.1.3, 4.2, 4.3.3, 4.4, 4.6, 4.7 or 4.8 of Schedule 1, in clause 4.3, 4.5 or 4.9 of that Schedule as modified or clarified by Division 1 or 1.1, in subsection 5(3) or 8(6) or (7), in section 10 or in Division 1.1 or 1.2.

392 Paragraph 16(a) of the Act is replaced by the following:

• (a) order an organization to correct its practices in order to comply with Divisions 1 to 1.2;

393 Subsection 17.1(1) of the Act is replaced by the following:

Marginal note:Compliance agreement

• 17.1 (1) If the Commissioner believes on reasonable grounds that an organization has committed, is about to commit or is likely to commit an act or omission that could constitute a contravention of a provision of Division 1, 1.1 or 1.2 or a failure to follow a recommendation set out in Schedule 1, the Commissioner may enter into a compliance agreement, aimed at ensuring compliance with this Part, with that organization.

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

Marginal note:To ensure compliance

• 18 (1) The Commissioner may, on reasonable notice and at any reasonable time, audit the personal information management practices of an organization if the Commissioner has reasonable grounds to believe that the organization has contravened a provision of Division 1, 1.1 or 1.2 or is not following a recommendation set out in Schedule 1 and for that purpose may

395 Paragraph 24(c) of the Act is replaced by the following:

• (c) encourage organizations to develop detailed policies and practices, including organizational codes of practice, to comply with Divisions 1 to 1.2; and

396 Subsection 27(1) of the Act is replaced by the following:

Marginal note:Whistleblowing

• 27 (1) Any person who has reasonable grounds to believe that a person has contravened or intends to contravene a provision of Division 1, 1.1 or 1.2 may notify the Commissioner of the particulars of the matter and may request that their identity be kept confidential with respect to the notification.

397 Paragraphs 27.1(1)(a) to (c) of the Act are replaced by the following:

• (a) the employee, acting in good faith and on the basis of reasonable belief, has disclosed to the Commissioner that the employer or any other person has contravened or intends to contravene a provision of Division 1, 1.1 or 1.2;

• (b) the employee, acting in good faith and on the basis of reasonable belief, has refused or stated an intention of refusing to do anything that is a contravention of a provision of Division 1, 1.1 or 1.2;

• (c) the employee, acting in good faith and on the basis of reasonable belief, has done or stated an intention of doing anything that is required to be done in order that a provision of Division 1, 1.1 or 1.2 not be contravened; or

Coming into Force

Marginal note:Order in council

398 This Division comes into force on a day to be fixed by order of the Governor in Council.

DIVISION 241991, c. 11Broadcasting Act

399 Paragraphs 2(3)(b) and (c) of the Broadcasting Act are replaced by the following:

• (b) the right to privacy of individuals; and

• (c) the commitment of the Government of Canada to enhance the vitality of official language minority communities in Canada and to support and assist their development, taking into account their uniqueness, diversity and historical and cultural contributions to Canadian society, as well as to foster the full recognition and use of both English and French in Canadian society.

DIVISION 252009, c. 24Human Pathogens and Toxins Act

Amendments to the Act

• 400 (1) The preamble to the English version of the Human Pathogens and Toxins Act is replaced by the following:

  Preamble

  Whereas the Parliament of Canada recognizes the objective of protecting the health, safety and security of the public;

  Whereas the Parliament of Canada recognizes that human pathogens and toxins pose varying levels of risk to the health, safety and security of the public;

  Whereas the Parliament of Canada recognizes that a lack of full scientific certainty regarding the risks posed by certain human pathogens and toxins is not to be used as a reason to postpone measures that protect the health, safety and security of the public;

  Whereas the Parliament of Canada recognizes that human pathogens and toxins evolve and can be altered and that new human pathogens and toxins appear continually, therefore creating unique challenges in meeting the objective of protecting the health, safety and security of the public;

• (2) The preamble to the Act is amended by adding the following after the fourth paragraph:

  And whereas the Parliament of Canada recognizes that preventing the theft of sensitive information in relation to human pathogens and toxins contributes to the objective of protecting the health, safety and security of the public;

401 Section 2 of the English version of the Act is replaced by the following:

Marginal note:Purpose

2 The purpose of this Act is to establish a safety and security regime to protect the health, safety and security of the public against the risks posed by human pathogens and toxins.

• 402 (1) The definitions controlled activity, human pathogen, Risk Group 2, Risk Group 3, Risk Group 4 and toxin in subsection 3(1) of the Act are replaced by the following:

  controlled activity

  controlled activity, in respect of a human pathogen or toxin, means any of the following activities:

  • (a) possessing, handling or using it;

  • (b) producing it;

  • (c) storing it;

  • (d) permitting any person access to it;

  • (e) transferring it;

  • (f) importing or exporting it;

  • (g) releasing or otherwise abandoning it; or

  • (h) disposing of it. (activité réglementée)

  human pathogen

  human pathogen means a micro-organism, nucleic acid or protein that

  • (a) is listed in the registry or in Part 2 of the schedule; or

  • (b) is not listed in the registry or in Part 2 of the schedule but falls into Risk Group 2, Risk Group 3 or Risk Group 4. (agent pathogène humain)

  Risk Group 2

  Risk Group 2 means a category of human pathogens that pose a moderate risk to the health of individuals and a low risk to public health and includes the human pathogens listed under Risk Group 2 in the registry. They are able to cause serious disease in a human but are unlikely to do so. Effective treatment and preventive measures are available and the risk of spread of disease caused by those pathogens is low.  (groupe de risque 2)

  Risk Group 3

  Risk Group 3 means a category of human pathogens that pose a high risk to the health of individuals and a low risk to public health and includes the human pathogens listed under Risk Group 3 in the registry. They are likely to cause serious disease in a human. Effective treatment and preventive measures are usually available and the risk of spread of disease caused by those pathogens is low. (groupe de risque 3)

  Risk Group 4

  Risk Group 4 means a category of human pathogens that pose a high risk to the health of individuals and a high risk to public health and includes the human pathogens listed under Risk Group 4 in the registry. They are likely to cause serious disease in a human. Effective treatment and preventive measures are not usually available and the risk of spread of disease caused by those pathogens is high. (groupe de risque 4)

  toxin

  toxin means a substance that is produced by, or derived from, a micro-organism and that

  • (a) may or may not be listed in the registry and poses a moderate to high risk to the health of individuals;

  • (b) is listed in the registry and poses a moderate to high risk to the health, safety or security of the public due to a reasonable risk of intentional use as a biological weapon, with the risk and minimum quantity at which it poses that risk indicated in accordance with paragraph 9(2)(a); or

  • (c) is listed in Part 1 of the schedule. (toxine)

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

  registry

  registry means the registry established under subsection 9(1). (registre)

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

  foreign entity

  foreign entity means a foreign economic entity, foreign entity, or foreign state as those terms are defined in subsection 2(1) of the Foreign Interference and Security of Information Act. (entité étrangère)

  terrorist group

  terrorist group has the same meaning as in subsection 83.01(1) of the Criminal Code. (groupe terroriste)

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

• (b) a drug in dosage form or a device whose sale is permitted or otherwise authorized under the Food and Drugs Act or a human pathogen or toxin contained in such a drug or device.

404 Section 5 of the English version of the Act and the heading before it are replaced by the following:

His Majesty

Marginal note:Act binding on His Majesty

5 This Act is binding on His Majesty in right of Canada or a province.

405 Section 6 of the English version of the Act is replaced by the following:

Marginal note:Reasonable precautions

6 Every person who knowingly conducts any activity referred to in section 7 involving a human pathogen or toxin must take all reasonable precautions to protect the health, safety and security of the public against the risks posed by that activity.

406 Sections 7 to 9 of the Act and the heading before section 10 are replaced by the following:

Marginal note:Controlled activities

• 7 (1) A person must not knowingly conduct any controlled activity unless a licence has been issued by the Minister that authorizes the activity.

• Marginal note:Exceptions

  (2) Despite the definition controlled activity in subsection 3(1), the following activities are not controlled activities:

  • (a) any activity to which the Transportation of Dangerous Goods Act, 1992 applies that involves

    • (i) human pathogens that fall into Risk Group 2,

    • (ii) human pathogens that fall into Risk Group 3 and are not prescribed by regulation, or

    • (iii) toxins that are not prescribed by regulation;

  • (b) export authorized under the Export and Import Permits Act that involves

    • (i) human pathogens that fall into Risk Group 2,

    • (ii) human pathogens that fall into Risk Group 3 and are not prescribed by regulation, or

    • (iii) toxins that are not prescribed by regulation;

  • (c) any activity to which the Transportation of Dangerous Goods Act, 1992 applies that involves the following human pathogens or toxins, unless the person who conducts the activity also conducts controlled activities to which that Act does not apply:

    • (i) human pathogens that fall into Risk Group 3 and are prescribed by regulation,

    • (ii) human pathogens that fall into Risk Group 4, or

    • (iii) toxins that are prescribed by regulation; and

  • (d) export authorized under the Export and Import Permits Act that involves the following human pathogens or toxins, unless the person who exports also conducts controlled activities to which that Act does not apply:

    • (i) human pathogens that fall into Risk Group 3 and are prescribed by regulation,

    • (ii) human pathogens that fall into Risk Group 4, or

    • (iii) toxins that are prescribed by regulation.

Marginal note:Human pathogens and toxins — schedule

8 Despite section 7, a person must not conduct any activity referred to in that section in relation to a human pathogen or toxin listed in the schedule.

Registry

Marginal note:Registry

• 9 (1) The Minister must establish and update a registry that

  • (a) lists any substance that, in the opinion of the Minister, is produced by, or derived from, a micro-organism and poses a moderate to high risk to the health, safety or security of the public due to a reasonable risk of intentional use as a biological weapon; and

  • (b) may list

    • (i) any micro-organism, nucleic acid or protein if they are of the opinion that it falls into Risk Group 2, Risk Group 3 or Risk Group 4, or

    • (ii) any substance if they are of the opinion that it is produced by, or derived from a micro-organism and it poses a moderate to high risk to the health of individuals.

• Marginal note:Minister's obligation

  (2) The Minister must indicate in the registry

  • (a) in the case of a substance referred to in paragraph (1)(a), that

    • (i) it poses a moderate to high risk to the health, safety or security of the public due to a reasonable risk of intentional use as a biological weapon, and

    • (ii) the minimum quantity at which, in the opinion of the Minister, it poses that risk; and

  • (b) in the case of a micro-organism, nucleic acid or protein referred to in subparagraph (1)(b)(i), the risk group into which, in the opinion of the Minister, it falls.

• Marginal note:Minimum quantity

  (3) The Minister may, for any substance referred to in subparagraph (1)(b)(ii) that is listed in the registry, identify in the registry the minimum quantity at which, in the opinion of the Minister, the substance poses the risk referred to in that subparagraph.

• Marginal note:Deletion of items

  (4) The Minister must delete from the registry a micro-organism, nucleic acid, protein or substance if the Governor in Council adds it to the schedule under subsection 10(1).

• Marginal note:Amendments to the registry

  (5) The Minister must, in the registry,

  • (a) amend the risk group of a human pathogen if the Minister is of the opinion that it falls into a risk group that is different from the one under which it is listed in the registry;

  • (b) add the references referred to in paragraph (2)(a) if the Minister is of the opinion that the toxin that is listed in the registry poses a risk referred to in paragraph (1)(a);

  • (c) remove the references referred to in paragraph (2)(a) if the Minister is of the opinion that the toxin that is listed in the registry does not pose a risk referred to in paragraph (1)(a); and

  • (d) amend the minimum quantity that is listed for a toxin if the Minister is of the opinion that it is not the minimum quantity at which the toxin poses a risk referred to in paragraph (1)(a) or subparagraph (1)(b)(ii).

• Marginal note:Amendment to the registry — name

  (6) The Minister may amend the registry by modifying the name of a human pathogen or toxin listed in the registry.

• Marginal note:Accessibility of the registry

  (7) The Minister must make the registry accessible to the public by electronic means and by any other means that the Minister considers appropriate.

• Marginal note:Delegation

  (8) The Minister may, subject to any terms and conditions that they specify, delegate to an officer or employee of the Public Health Agency of Canada established under section 3 of the Public Health Agency of Canada Act, any of the powers that the Minister is authorized to exercise or any of the duties and functions that they are authorized to perform under subsections (1) to (7).

• Marginal note:Non-application

  (9) For greater certainty, section 5 of the Public Health Agency of Canada Act does not apply if the Minister delegates any of the powers they are authorized to exercise or any of the duties and functions that they are authorized to perform under subsection (8).

• Marginal note:Exemption from Statutory Instruments Act

  (10) The registry is exempt from sections 3, 5 and 11 of the Statutory Instruments Act.

Marginal note:Advisory Committee

• 9.1 (1) An advisory committee established under subsection 14(1) of the Public Health Agency of Canada Act is to, on a periodic basis, provide advice to the Minister in respect of the registry.

• Marginal note:Request of Minister

  (2) The Minister may at any time request the advisory committee to provide advice in respect of the registry.

• Marginal note:Publication

  (3) The advisory committee must make available to the public the advice given to the Minister.

Schedule

• 407 (1) The portion of paragraph 10(1)(a) of the Act before subparagraph (ii) is replaced by the following:

  • (a) add a substance to Part 1 of the schedule if the Governor in Council is of the opinion that

    • (i) it is produced by, or derived from, a micro-organism and poses a moderate to high risk to

      • (A) the health of individuals, or

      • (B) the health, safety or security of the public due to a reasonable risk of intentional use as a biological weapon; and

• (2) The portion of paragraph 10(1)(b) of the Act before subparagraph (i) is replaced by the following:

  • (b) add a micro-organism, nucleic acid or protein to Part 2 of the schedule if the Governor in Council is of the opinion that

• (3) Subsection 10(1) of the Act is amended by adding "or" at the end of paragraph (a), by striking out "or" at the end of paragraph (b) and by repealing (c).

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

  • Marginal note:Deletion of items

    (2) The Governor in Council may, by regulation, on the Minister's recommendation, delete a substance, micro-organism, nucleic acid or protein from the schedule if the Governor in Council is of the opinion that it is in the public interest to allow one or more of the activities referred to in section 7 to be authorized in relation to that substance, micro-organism, nucleic acid or protein.

408 The heading before section 11 of the Act is replaced by the following:

Consequences of Updating the Registry or Schedule

• 409 (1) The portion of subsection 11(1) of the Act before paragraph (a) is replaced by the following:

  Marginal note:Prohibited possession — update

  • 11 (1) Within 30 days after the date that an update to the registry under subsection 9(1) is publicly accessible, every person who, as a result of the update to the registry, no longer has lawful possession of a human pathogen or toxin must

• (2) Subsection 11(2) of the English version of the Act is replaced by the following:

  • Marginal note:Prohibited possession — schedule

    (2) Within 14 days after the date of publication of a regulation made under subsection 10(1), every person who, as a result of the regulation, no longer has lawful possession of a human pathogen or toxin must dispose of it in accordance with the regulations, if any.

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

  • Marginal note:No contravention

    (3) No person contravenes subsection 7(1) or section 8 by reason only that they possess a human pathogen or toxin in the circumstances described in subsection (1) or (2) if they transfer or dispose of it or obtain a licence or a variation of their existing licence authorizing possession of it, in accordance with subsection (1) or (2).

  • Marginal note:Defence

    (4) If a human pathogen or toxin is listed in the registry, then no person may be convicted of an offence — in relation to that human pathogen or toxin — for the contravention of this Act or the regulations unless it is proved that, at the time of the alleged contravention,

    • (a) the registry with the human pathogen or toxin listed in it was reasonably accessible to the person;

    • (b) the human pathogen or toxin was listed in the registry; and

    • (c) the registry indicated, in relation to the human pathogen or toxin,

      • (i) the risk group into which the human pathogen falls,

      • (ii) if the toxin poses a moderate to high risk to the health, safety or security of the public due to a reasonable risk of intentional use as a biological weapon, the references referred to in paragraph 9(2)(a), or

      • (iii) the minimum quantity at which the toxin poses a moderate to high risk to the health of individuals, if any.

• (4) The portion of subsection 11(4) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Defence

    (4) If a human pathogen or toxin is listed in the registry, then no person may be convicted of an offence or subjected to an administrative monetary penalty — in relation to that human pathogen or toxin — for the contravention of any provision of this Act or the regulations unless it is proved that, at the time of the alleged contravention,

• 410 (1) Subsection 12(1) of the Act is replaced by the following:

  Marginal note:Inadvertent release

  • 12 (1) If a licence holder has reasonable grounds to suspect that a human pathogen or toxin has been released inadvertently from a facility in the course of a controlled activity authorized by the licence, the licence holder must, without delay, inform the Minister of the release and provide the Minister with the information referred to in subsection (3) that is under the licence holder's control.

• (2) Paragraph 12(2)(b) of the Act is replaced by the following:

  • (b) dispose of the inadvertently produced human pathogen or toxin in accordance with the regulations, if any, or, if it is not listed in the schedule, transfer it to a facility where controlled activities in relation to that human pathogen or toxin are authorized.

411 The portion of section 13 of the Act before paragraph (a) is replaced by the following:

Marginal note:Disease

13 If a licence holder has reasonable grounds to suspect that an incident involving a human pathogen or toxin that is in their possession has, or may have, caused disease in an individual, the licence holder must, without delay, inform the Minister of the incident and provide the Minister with the following information that is under the licence holder's control:

412 Sections 14 to 16 of the Act are replaced by the following:

Marginal note:Missing human pathogen or toxin

14 If a licence holder has reasonable grounds to suspect that a human pathogen or toxin that was in their possession has been stolen or is otherwise missing, the licence holder must, without delay, inform the Minister and provide the Minister with any information relating to the incident that is under their control and that the Minister may require. The licence holder must also take reasonable measures to locate the missing human pathogen or toxin.

Marginal note:Person conducting controlled activities

15 If a person conducting controlled activities under the authority of a licence has reasonable grounds to suspect that any of the incidents described in subsection 12(1) or (2) or section 13 or 14 has occurred, the person must, without delay, inform the licence holder.

Marginal note:Use of information

16 No information provided under sections 12 to 15 by a licence holder or a person conducting controlled activities under the authority of a licence may be used or received against that person in any criminal proceedings that are subsequently instituted against them, other than with respect to a contravention of section 17 or in respect of an allegation that the licence holder or person conducting controlled activities has shown wanton or reckless disregard for the health, safety or security of other persons.

413 Section 15 of the Act is replaced by the following:

Marginal note:Other incidents

14.1 If a licence holder has reasonable grounds to suspect that an incident meets all of the conditions below, the licence holder must inform the Minister of the incident and provide them, without delay, with the information related to the incident that the Minister requires that is under the licence holder's control:

• (a) the incident is not one referred to in subsection 12(1) or (2) or section 13 or 14;

• (b) it involves human pathogens that fall into Risk Group 3 and are prescribed by regulation, human pathogens that fall into Risk Group 4 or toxins prescribed by regulation;

• (c) it is specified in regulations.

Marginal note:Person conducting controlled activities

15 If a person conducting controlled activities under the authority of a licence has reasonable grounds to suspect that any of the incidents described in subsection 12(1) or (2) or section 13, 14 or 14.1 has occurred, the person must, without delay, inform the licence holder.

414 Section 16 of the Act is replaced by the following:

Marginal note:Use of information

16 No information provided under sections 12 to 15 by a licence holder or a person conducting controlled activities under the authority of a licence may be used or received against that person in the following proceedings that are subsequently instituted against them:

• (a) proceedings in respect of a violation enforced by an administrative monetary penalty; or

• (b) criminal proceedings, other than with respect to a contravention of section 17 or in respect of an allegation that the licence holder or person conducting controlled activities has shown wanton or reckless disregard for the health, safety or security of other persons.

• 415 (1) Subsection 18(1) of the English version of the Act is replaced by the following:

  Marginal note:Issuance

  • 18 (1) The Minister may, in accordance with the regulations, if any, issue a licence that authorizes any controlled activity in any facility if the Minister is of the opinion that the conduct of the controlled activity in the facility poses no undue risk to the health, safety or security of the public.

• (2) Section 18 of the Act is amended by adding the following after subsection (1):

  • Marginal note:Conditions

    (1.1) Despite subsection (1), the Minister may issue a licence only if,

    • (a) in the case that the applicant is an individual, the applicant and the biological safety officer designated for the licence are ordinarily resident in Canada; or

    • (b) in the case that the applicant is an organization, the applicant is incorporated, formed or otherwise organized in Canada and its representative and the biological safety officer designated for the licence are ordinarily resident in Canada.

  • Marginal note:Debts due to His Majesty

    (1.2) In exercising the power conferred by subsection (1), the Minister may consider whether an applicant or any organization with which an applicant is or was affiliated owes an amount referred to in section 65.

• (3) Section 18 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Information

    (2.1) An application for a licence to authorize controlled activities in relation to human pathogens that fall into Risk Group 3 and are prescribed by regulation, human pathogens that fall into Risk Group 4 or toxins that are prescribed by regulation must include the information prescribed by regulation and make reference, in accordance with the regulations, to the following:

    • (a) any contribution or other funding that originates from outside Canada that the applicant received or expects to receive in relation to their activities;

    • (b) if the applicant is an organization, any person or foreign entity that has or is seeking to have any direct or indirect ownership or influence over the organization that would result in control in fact of the organization; and

    • (c) if the applicant is an individual, any person or foreign entity that has or is seeking to have any direct or indirect influence over any activities of the applicant that are governed by this Act or the regulations.

• (4) Subsection 18(3) of the Act is replaced by the following:

  • Marginal note:Refusal to issue licence

    (3) If the Minister refuses to issue a licence, the Minister must notify the applicant in writing of the reasons for the refusal.

• (5) Subsection 18(4) of the English version of the Act is replaced by the following:

  • Marginal note:Conditions

    (4) A licence authorizes the controlled activities that are specified in it and is subject to any conditions that the Minister considers appropriate to protect the health, safety and security of the public.

• (6) Section 18 of the Act is amended by adding the following after subsection (4):

  • Marginal note:Conditions — transportation

    (4.1) If the Minister considers it appropriate to impose licence conditions for the conduct of controlled activities to which the Transportation of Dangerous Goods Act, 1992 applies, they must consult with the Minister of Transport and may consult with any other person the Minister considers appropriate.

  • Marginal note:Failure to consult

    (4.2) The failure of the Minister to comply with the requirement to consult under subsection (4.1) does not exempt the licence holder and all persons conducting the controlled activities authorized by the licence from the obligation to comply with the licence conditions.

• (7) Paragraph 18(5)(a) of the Act is replaced by the following:

  • (a) the licence holder's name and, if applicable, the name of the individual who is designated as a representative for the licence holder;

  • (a.1) the biological safety officer's name;

• (8) Subsection 18(5) of the Act is amended by adding the following after paragraph (d):

  • (d.1) a description of each part of the facility that is prescribed by the regulations made for the purposes of section 33.1;

• (9) Section 18 of the Act is amended by adding the following after subsection (6):

  • Marginal note:Obligation of the licence holder — information

    (6.1) If a licence authorizes controlled activities in relation to human pathogens that fall into Risk Group 3 and are prescribed by regulation, human pathogens that fall into Risk Group 4 or toxins that are prescribed by regulation, the licence holder must provide the Minister with the information prescribed by regulation and inform them, in accordance with the regulations, of the following:

    • (a) any contribution or other funding that originates from outside Canada that the licence holder received or expects to receive in relation to their activities;

    • (b) if the licence holder is an organization, any person or foreign entity that has or is seeking to have any direct or indirect ownership or influence over the organization that would result in control in fact of the organization; and

    • (c) if the licence holder is an individual, any person or foreign entity that has or is seeking to have any direct or indirect influence over any activities of the licence holder that are governed by this Act or the regulations.

416 Section 19 of the Act is replaced by the following:

Marginal note:Variation of licence

• 19 (1) The Minister may, in accordance with the regulations, if any, on the Minister's own initiative or on the application of a licence holder, vary a licence if the conditions referred to in subsections 18(1) and (1.1) are satisfied.

• Marginal note:Exception

  (1.1) Despite subsection (1), the Minister may, if they are of the opinion that exigent circumstances exist, vary the licence even if the conditions referred to in subsection 18(1.1) are not satisfied.

• Marginal note:Time period

  (1.2) A licence that has been varied under subsection (1.1) is valid for a period of up to 90 days after the day of the variance.

• Marginal note:Debts owed to His Majesty

  (1.3) In exercising the power conferred by subsection (1), the Minister may consider whether the licence holder, any organization with which a licence holder is or was affiliated or a person conducting controlled activities under the authority of the licence owes an amount referred to in section 65.

• Marginal note:Representations

  (2) The Minister may vary the licence on the Minister's own initiative only if the Minister first gives the licence holder a reasonable opportunity to make representations.

• Marginal note:Measures specified by Minister

  (3) If the Minister varies the licence, the Minister may specify in writing any measures to be taken to protect the health, safety and security of the public that the variation in conditions may necessitate.

• 417 (1) Subsection 20(1) of the Act is replaced by the following:

  Marginal note:Suspension or revocation

  • 20 (1) The Minister may suspend or revoke a licence in any of the following situations:

    • (a) the Minister is of the opinion that a controlled activity authorized by the licence is conducted in a manner that is contrary to this Act or the regulations or poses an undue risk to the health, safety or security of the public;

    • (b) a licence holder who is an individual or the biological safety officer designated for the licence is not ordinarily resident in Canada; or

    • (c) a licence holder that is an organization is incorporated, formed or otherwise organized outside Canada or that its representative or the biological safety officer designated for the licence is not ordinarily resident in Canada.

• (2) Subsection 20(3) of the Act is replaced by the following:

  • Marginal note:Measures specified by Minister

    (3) If the Minister suspends or revokes a licence, the Minister may specify in writing any measures to be taken to protect the health, safety and security of the public that the suspension or revocation may necessitate.

418 Subsection 22(1) of the Act is replaced by the following:

Marginal note:Serious and imminent danger

• 22 (1) If the Minister is of the opinion that there is a serious and imminent danger to the health, safety or security of the public, the Minister must notify the licence holder orally of the decision to suspend or revoke their licence.

419 Subsection 23(3) of the English version of the Act is replaced by the following:

• Marginal note:Measures specified by Minister

  (3) When a request for a review is made, the Minister may specify in writing any measures to be taken to protect the health, safety and security of the public pending the Minister's final decision.

420 Section 31 of the Act is replaced by the following:

Marginal note:List of authorized persons

31 A licence holder must establish and maintain a list of all persons authorized by the licence holder to access the facility — including remote access by a means of telecommunication — to which the licence applies, including persons holding a security clearance for that facility and visitors. The licence holder must provide the Minister with that list if requested to do so.

421 Section 33 of the Act is replaced by the following

Marginal note:Access to facilities — security clearance

33 An individual must not enter — to conduct controlled activities — the part of a facility in which controlled activities are authorized in relation to human pathogens that fall into Risk Group 3 or Risk Group 4 and are prescribed by regulation or in relation to toxins prescribed by regulation unless they hold a security clearance for that part of the facility.

Marginal note:Access — compliance with regulations

• 33.1 (1) Except in accordance with the regulations, any individual who does not conduct controlled activities authorized in relation to human pathogens that fall into Risk Group 3 or Risk Group 4 and are prescribed by regulation or in relation to toxins prescribed by regulation is prohibited from

  • (a) entering a facility in which controlled activities are authorized in relation to those human pathogens or toxins;

  • (b) remotely accessing that facility by a means of telecommunication; or

  • (c) accessing by any means, sensitive information, as defined by regulation, in relation to those human pathogens or toxins.

• Marginal note:Non-application

  (2) Paragraphs (1)(a) and (b) do not apply to an individual who holds a security clearance referred to in section 33 that authorizes entry to part of a facility referred to in paragraph (1)(a) in which controlled activities are authorized in relation to human pathogens that fall into Risk Group 3 or Risk Group 4 and are prescribed by regulation or in relation to toxins prescribed by regulation.

• Marginal note:Restriction

  (3) Moreover, if an individual holds a security clearance that does not authorize them to enter certain parts of a facility referred to in paragraph (1)(a) in which controlled activities are authorized in relation to human pathogens that fall into Risk Group 3 or Risk Group 4 and are prescribed by regulation or in relation to toxins prescribed by regulation, the individual may enter those parts or remotely access them by a means of telecommunication only if they do so in accordance with the regulations.

422 The Act is amended by adding the following after section 35:

Marginal note:Minister's power — individual

• 35.1 (1) Despite sections 33 and 33.1, the Minister may, on any conditions that they consider appropriate, exempt any individual from the requirement to hold a security clearance under section 33 or to comply with the regulations referred to in section 33.1 if the Minister is of the opinion that the exemption

  • (a) poses no undue risk to the health, safety or security of the public; and

  • (b) is warranted by reason of exigent circumstances or that the individual holds a security clearance authorized by a reliable source.

• Marginal note:Minister's power — order

  (2) Despite sections 33 and 33.1, the Minister may, by order, on any conditions that they consider appropriate, establish a class of individuals and exempt any individual within that class from the requirement to hold a security clearance under section 33 or to comply with regulations referred to in section 33.1 if the Minister is of the opinion that the exemption

  • (a) poses no undue risk to the health, safety or security of the public; and

  • (b) is warranted by reason of exigent circumstances or that the individuals within the class of individuals hold a security clearance authorized by a reliable source.

• Marginal note:Duration of order

  (3) An order ceases to have effect on the day on which it is repealed.

423 Section 36 of the Act is replaced by the following:

Marginal note:Designation

• 36 (1) An applicant must, before a licence may be issued, designate as a biological safety officer for the requested licence, an individual who must have the qualifications set out in the regulations. The individual designated may also be the applicant.

• Marginal note:Effective date

  (2) A designation takes effect on the day on which the designated individual provides the Minister with their written consent to the designation or the day on which the individual begins to act as a biological safety officer, whichever is earlier.

• Marginal note:Powers, duties and functions

  (3) The biological safety officer must exercise the powers and perform the duties and functions set out in the regulations.

• Marginal note:Designation — effect

  (4) A designation does not have the effect of limiting the obligations of the licence holder or any other person under this Act.

• Marginal note:Replacement

  (5) If an individual ceases to act as a biological safety officer, the licence holder must, without delay, designate another individual and inform the Minister of the new designation.

Licence Holder Representative

Marginal note:Designation

• 36.1 (1) An applicant that is an organization must, before a licence may be issued, designate an individual as its representative for the requested licence.

• Marginal note:Powers, duties and functions

  (2) The representative is the point of contact for any matters in relation to the licence and may exercise any of the licence holder's powers and perform any of their duties and functions under this Act or that are prescribed by regulations, if any.

• Marginal note:Designation — effect

  (3) A designation does not have the effect of limiting the obligations of the licence holder or any other person under this Act.

• Marginal note:Replacement

  (4) If an individual ceases to act as a representative, the licence holder must, without delay, designate another individual and inform the Minister of the new designation.

424 Subsection 38(2) of the Act is replaced by the following:

• Marginal note:Information

  (2) The information that is to be provided may include information

  • (a) regarding the human pathogens or toxins in the possession of the applicant, licence holder or biological safety officer;

  • (b) regarding the persons having access to the human pathogens or toxins referred to in paragraph (a);

  • (c) regarding the facility in which the controlled activities are authorized or in respect of which an application for a licence has been submitted;

  • (d) regarding the controlled activities that are authorized by a licence or in respect of which an application for a licence has been submitted;

  • (e) that is necessary to enable Canada to fulfil its international obligations; and

  • (f) that is necessary to enable Canada to submit Confidence-Building Measures in connection with the Biological and Toxin Weapons Convention.

• 425 (1) Paragraph 39(1)(b) of the English version of the Act is replaced by the following:

  • (b) the Minister has reasonable grounds to believe that the disclosure is necessary to address a serious and imminent danger to the health, safety or security of the public;

• (2) Subsection 39(1) of the Act is amended by adding "or" at the end of paragraph (c) and by adding the following after that paragraph:

  • (d) the disclosure is necessary to enable Canada to submit Confidence-Building Measures in connection with the Biological and Toxin Weapons Convention.

• (3) Subsection 39(2) of the Act is replaced by the following:

  • Marginal note:Maintain confidentiality of information

    (2) Except in the circumstances described in paragraph (1)(b) or (d), before disclosing the information to any person other than His Majesty in right of Canada or an agent of His Majesty, the Minister must obtain the person's written agreement that they will maintain the confidentiality of the information unless they are required by law to disclose it.

426 The Act is amended by adding the following after section 40:

Marginal note:Definition of document

40.1 In sections 40.2 and 41, document includes any report, book and electronic data and any other thing containing information.

Marginal note:Provision of documents, information or material

• 40.2 (1) An inspector may, for a purpose related to verifying compliance or preventing non-compliance with any provision of this Act or the regulations, order a person to provide, in the manner specified by the inspector, any document, information or material specified by the inspector.

• Marginal note:Duty to provide

  (2) A person who is ordered by an inspector to provide a document, information or material must do so in the manner specified by the inspector.

• 427 (1) Subsection 41(1) of the Act is replaced by the following:

  Marginal note:Entry by inspector

  • 41 (1) Subject to section 42, an inspector may, for the purpose of verifying compliance or preventing non-compliance with any provision of this Act or the regulations, enter at any reasonable time any place or conveyance in which the inspector believes on reasonable grounds that

    • (a) an activity to which this Act or the regulations applies is conducted;

    • (b) any material, equipment or document relevant to the administration of this Act or the regulations is located; or

    • (c) an activity could be conducted under a licence for which an application is under consideration by the Minister.

  • Marginal note:Individual accompanying inspector

    (1.1) An inspector may be accompanied by any individual who the inspector believes is necessary to help them exercise their powers or perform their duties or functions under this section.

• (2) Paragraphs 41(2)(i) to (m) of the Act are replaced by the following:

  • (i) use or cause to be used any computer system, as defined in subsection 342.1(2) of the Criminal Code, or any means of telecommunication found there to examine electronic data that is contained in or available to the computer system or means of telecommunication;

  • (j) require any person in the place or conveyance to produce any document found there for examination or reproduction; and

  • (k) examine, reproduce or cause to be reproduced, in whole or in part, any document found there and remove any reproductions.

• (3) Section 41 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Remote access

    (2.1) For the purposes of subsection (1), an inspector is considered to have entered a place or conveyance when they remotely access it by a means of telecommunication.

  • Marginal note:Limitation — remote access

    (2.2) An inspector who enters — by remote access by a means of telecommunication — a place or conveyance that is not accessible to the public must do so with the knowledge of the owner or person in charge of the place or conveyance and only for the period necessary for the purpose referred to in subsection (1).

• (4) Subsection 41(3) of the French version of the Act is replaced by the following:

  • Marginal note:Moyens de transport

    (3) L'inspecteur peut ordonner au propriétaire du véhicule qu'il entend visiter ou à la personne qui en a la possession, la responsabilité ou la charge de l'immobiliser ou de le conduire en tout lieu où il peut effectuer la visite.

• (5) Section 41 of the Act is amended by adding the following after subsection (3):

  • Marginal note:Duty to comply

    (3.1) An owner or person who, under subsection (3), is ordered to stop or move a conveyance, must stop or move it.

• (6) Subsections 41(5) to (7) of the Act are replaced by the following:

  • Marginal note:Assistance to inspector

    (5) The owner or person in charge of a place or conveyance that is entered by an inspector who is carrying out their functions and every individual in that place or conveyance must give the inspector and any individual referred to in subsection (1.1) all reasonable assistance and provide them with any information that the inspector may reasonably require.

  • Marginal note:Prohibition — obstruction and false statements

    (6) A person must not knowingly obstruct or hinder, or make a false or misleading statement either orally or in writing to, an inspector who is carrying out their functions or to any individual referred to in subsection (1.1).

  • Marginal note:Entering private property

    (7) An inspector who is carrying out their functions and any individual referred to in subsection (1.1) accompanying the inspector may enter on and pass through or over private property, and they are not liable for doing so.

428 Subsections 43(1) to (3) of the Act are replaced by the following:

Marginal note:Measures

• 43 (1) If an inspector has reasonable grounds to believe that a licence holder or any person in a place or conveyance where controlled activities are taking place is not compliant or is not likely to comply with one or more provisions of this Act or the regulations, the inspector may order the licence holder or person to carry out any measure that the inspector considers necessary to remedy or prevent the non-compliance.

• Marginal note:Obligation

  (2) A licence holder or person who is ordered by an inspector to carry out such a measure must comply with the order and, in doing so, does not contravene this Act or the regulations.

• Marginal note:Withdrawal of order

  (3) An inspector who orders a measure to be carried out must withdraw the order if they no longer have reasonable grounds to believe that the licence holder or person is not compliant or not likely to comply with this Act or the regulations.

• 429 (1) Paragraph 46(2)(b) of the English version of the Act is replaced by the following:

  • (b) it does not pose a serious and imminent danger to the health, safety or security of the public; and

• (2) The portion of subsection 46(3) of the English version of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Order of later restoration

    (3) If, on hearing an application, the provincial court judge is satisfied that the applicant is entitled to possession of the seized thing and that it does not pose a serious and imminent danger to the health, safety or security of the public but is not satisfied with respect to paragraph (2)(c), the judge may order that the thing be restored to the applicant

430 Section 47 of the English version of the Act is replaced by the following:

Marginal note:Forfeiture

• 47 (1) If no application is made for the restoration of a thing seized under this Act within 60 days after the day of its seizure, or an application has been made but no order of restoration is made after the application has been heard, the seized thing is forfeited to His Majesty in right of Canada.

• Marginal note:Forfeiture with consent

  (2) If an inspector has seized a thing and its owner, or the person in possession of it at the time of its seizure, consents in writing to its forfeiture, the thing is forfeited to His Majesty in right of Canada.

• Marginal note:Disposal

  (3) Subject to section 48, the Minister may dispose of a seized thing that is forfeited to His Majesty in right of Canada in any manner that the Minister directs.

431 The Act is amended by adding the following after section 52:

Administrative Monetary Penalties

Violations

Marginal note:Administrative monetary penalties

• 52.1 (1) Every person who contravenes a provision designated under paragraph (12)(a) commits a violation and is liable to an administrative monetary penalty of not more than $50,000 in the case of an individual and $250,000 in the case of any other person.

• Marginal note:Purpose of penalty

  (2) The purpose of the penalty is to promote compliance with the provisions of this Act or the regulations and not to punish.

• Marginal note:Minister's powers — notice of violation

  (3) The Minister may

  • (a) establish the form of notices of violations;

  • (b) designate individuals, or classes of individuals, who are authorized to issue notices of violations; and

  • (c) establish, in respect of each violation, a short-form description to be used in notices of violation.

• Marginal note:Notice of violation

  (4) If an individual designated under subsection (3) has reasonable grounds to believe that a person has committed a violation, the designated individual may issue a notice of violation and cause it to be served on the person. The notice of violation must include the information prescribed by regulation.

• Marginal note:Continuing violation

  (5) A violation that is committed or continued on more than one day constitutes a separate violation in respect of each day on which it is committed or continued.

• Marginal note:Limitation

  (6) Proceedings in respect of a violation may be instituted no later than two years after the day on which the subject matter of the proceedings becomes known to the Minister.

• Marginal note:Publication

  (7) After proceedings in respect of a violation are ended, the Minister may make public the nature of the violation, the name of the person who committed it and the amount of the penalty imposed.

• Marginal note:Directors, officers and agents or mandatries

  (8) If a person other than an individual commits a violation under this Act or the regulations, any of the person's directors, officers or agents or mandataries who directed, authorized, assented to, acquiesced in or participated in the commission of the violation is a party to the violation, whether or not the person is proceeded against under this Act or the regulations.

• Marginal note:Employees, agents or mandataries

  (9) In a proceeding for a violation under this Act or the regulations, it is sufficient proof of the violation to establish that it was committed by the employee of the person named in the notice of violation, who is acting within the scope of their employment, or the agent or mandatary of the person named in the notice of violation, who is acting within the scope of their authority, whether or not the employee, agent or mandatary is identified or proceeded against for the violation, unless the person named in the violation establishes that

  • (a) the violation was committed without the persons's knowledge or consent; and

  • (b) the person exercised all due diligence to prevent its commission.

• Marginal note:Violation or offence

  (10) If any act or omission can be proceeded with as a violation or as an offence, the Minister may commence proceedings in respect of that act or omission as a violation or recommend that it be proceeded with as an offence, but proceeding with it as a violation precludes proceeding with it as an offence, and proceeding with it as an offence precludes proceeding with it as a violation.

• Marginal note:Violation not offences

  (11) For greater certainty, a violation is not an offence and, accordingly, section 126 of the Criminal Code does not apply in respect of a violation.

• Marginal note:Regulations

  (12) The Governor in Council may make regulations respecting an administrative monetary penalties scheme, including regulations

  • (a) designating any of the following as violations:

    • (i) non-compliance with the requirements in subsection 12(1), paragraph 12(2)(a) or section 13, 14, 14.1 or 15 that are in respect of notification or the provision of information, as the case may be,

    • (ii) the contravention of subsection 18(2.1), (6) or (6.1),

    • (iii) the contravention of subsection 18(7) in relation to any licence conditions that are in respect of notification and the provision of information,

    • (iv) the contravention of section 30, 31 or 32,

    • (v) the contravention of the requirement in subsection 36(1) to designate an individual who holds the qualifications set out in regulations, as a biological safety officer,

    • (vi) the contravention of subsection 36(3) in relation to any powers, duties and functions that are in respect of notification and the provision of information,

    • (vii) the contravention of subsection 36(5) or 36.1(4),

    • (viii) the contravention of subsection 38(3),

    • (ix) the contravention of subsection 40.2(2), 41(3.1) or (5) or 44(2),

    • (x) the contravention of a provision of a regulation made under paragraph 66(1)(k), and

    • (xi) non-compliance with any other requirements that are in respect of notification and the provision of information that are prescribed by regulation;

  • (b) respecting the classification of each violation;

  • (c) respecting the information referred to in subsection (4);

  • (d) respecting the proceedings in respect of a violation; and

  • (e) respecting the penalties, including in relation to

    • (i) the determination of, or the method of determining the penalty applicable for each violation, and

    • (ii) the payment of the penalty imposed.

• Marginal note:Right to request review

  (13) Any regulation made under any of paragraphs (12)(a) to (e) must provide that a person named in the notice of violation has the right to request a review of the decision that the person has committed a violation or of the penalty imposed, or both.

Penalties

Marginal note:Payment

• 52.2 (1) If the person named in the notice of violation pays, in the time and manner specified in the notice, the amount of the penalty set out in the notice,

  • (a) they are deemed to have committed the violation in respect of which the amount is paid;

  • (b) the Minister must accept that amount as complete satisfaction of the penalty in respect of the violation; and

  • (c) the proceedings commenced in respect of the violation are ended.

• Marginal note:Alternatives

  (2) Instead of paying the amount of the penalty set out in the notice, the person may, in the time and manner specified in the notice,

  • (a) if the amount of the penalty set out in the notice is $5,000 or more, request to enter into a compliance agreement with the Minister that ensures the person's compliance with the provision to which the violation relates; or

  • (b) request a review by the Minister, in accordance with the regulations, of the decision that the person has committed a violation or of the penalty imposed, or both.

Compliance Agreements

Marginal note:Entering into compliance agreements

• 52.3 (1) After considering a request by a person named in the notice of violation, the Minister may enter into a compliance agreement with that person on any terms and conditions that are satisfactory to the Minister. The terms and conditions may

  • (a) include a provision for the deposit of reasonable security, in a form and amount satisfactory to the Minister, as a guarantee that the person will comply with the compliance agreement; and

  • (b) provide for the reduction, in whole or in part, of the penalty for the violation.

• Marginal note:Deeming

  (2) A person who enters into a compliance agreement with the Minister is, on doing so, deemed to have committed the violation in respect of which the compliance agreement was entered into.

• Marginal note:Notice of compliance

  (3) A notice from the Minister that they are satisfied that a person who has entered into a compliance agreement has complied with it ends the proceedings commenced in respect of the violation. Any security given by the person under the compliance agreement must then be returned to the person.

• Marginal note:Notice of default

  (4) If the Minister is of the opinion that a person who has entered into a compliance agreement has not complied with it, the Minister must cause a notice of default to be provided to the person informing them that

  • (a) instead of being liable to pay the amount of the penalty set out in the compliance agreement, the person is liable to pay, in the time and manner specified in the notice of default, an amount that is twice the amount of the penalty set out in the notice of violation, and for greater certainty, subsection 52.1(1) does not apply in respect of that amount; or

  • (b) the security is forfeited to His Majesty in right of Canada.

• Marginal note:Effect of notice of default

  (5) Once provided with the notice of default, the person may not deduct from the amount set out in the notice of default any amount they spent under the compliance agreement and

  • (a) the person is liable to pay the amount set out in the notice of default in the time and manner specified in the notice of default; or

  • (b) if the notice provides for the forfeiture of the security given under the compliance agreement, that security is forfeited to His Majesty in right of Canada and the proceedings commenced in respect of the violation are ended.

• Marginal note:Effect of payment

  (6) If the person pays the amount set out in the notice of default in the time and manner specified in the notice of default, the Minister must accept the amount as complete satisfaction of the amount owing in respect of the violation and the proceedings commenced in respect of the violation are ended.

Marginal note:Refusal to enter into compliance agreement

• 52.4 (1) If the Minister refuses to enter into a compliance agreement is liable to pay, in the time and manner specified in the notice of violation, the amount of the penalty set out in the notice of violation.

• Marginal note:Effect of payment

  (2) If a person pays the amount set out in the notice of violation in the specified time and manner,

  • (a) they are deemed to have committed the violation in respect of which the amount is paid;

  • (b) the Minister must accept the amount as complete satisfaction of the penalty in respect of the violation; and

  • (c) the proceedings commenced in respect of the violation are ended.

• Marginal note:Default of payment

  (3) If a person does not pay the amount set out in the notice of violation in the specified time and manner, they are deemed to have committed the violation identified in the notice of violation.

Rules About Violations

Marginal note:Due diligence

• 52.5 (1) A person must not be found to be liable for a violation under this Act if they establish that they exercised due diligence to prevent its commission.

• Marginal note:Non-application

  (2) Despite subsection (1), a person to whom the Minister causes a notice of default to be provided under subsection 52.3(4) does not have a defence by reason that the person exercised due diligence to comply with the compliance agreement.

• Marginal note:Common law principles

  (3) Every rule and principle of the common law that renders any circumstance a justification or excuse in relation to a charge for an offence under this Act or the regulations applies in respect of a violation to the extent that it is not inconsistent with this Act and the regulations.

432 Sections 53 to 56 of the Act are replaced by the following:

Marginal note:General

53 Subject to sections 54 to 58, every person who contravenes this Act or the regulations is guilty of an offence and liable,

• (a) in the case of a contravention with respect to a human pathogen that falls into Risk Group 2, on summary conviction, to a fine of not more than $250,000 or to imprisonment for a term of not more than six months, or to both;

• (b) in all other cases,

  • (i) on conviction on indictment, to a fine of not more than $1,000,000 or to imprisonment for a term of not more than five years, or to both, or

  • (ii) on summary conviction, to a fine of not more than $500,000 or to imprisonment for a term of not more than 18 months, or to both.

Marginal note:Breach of duty

54 Every person who contravenes section 6 and, as a result, creates a risk to the health, safety or security of the public is guilty of an indictable offence and liable to imprisonment for a term of not more than five years.

Marginal note:Wanton or reckless breach of duty

55 Every person who contravenes section 6 and who shows wanton or reckless disregard for the health, safety or security of other persons and, as a result, creates a risk to the health, safety or security of the public is guilty of an indictable offence and liable to imprisonment for a term of not more than 10 years.

433 The Act is amended by adding the following after section 55:

Marginal note:Communicating sensitive information

56 Every person who knowingly and without lawful authority communicates sensitive information as prescribed by regulation to a foreign entity or terrorist group is guilty of an indictable offence and liable to imprisonment for life.

• 434 (1) Subsection 57(1) of the Act is replaced by the following:

  Marginal note:Contravention of section 8 — knowingly

  • 57 (1) Every person who knowingly contravenes section 8 is guilty of an offence and liable on conviction by indictment to a fine of not more than $5,000,000 or to imprisonment for a term of not more than 14 years, or to both.

• (2) Paragraphs 57(2)(a) and (b) of the Act are replaced by the following:

  • (a) on conviction on indictment, to a fine of not more than $1,000,000 or to imprisonment for a term of not more than five years, or to both; or

  • (b) on summary conviction, to a fine of not more than $500,000 or to imprisonment for a term of not more than 18 months, or to both.

435 Section 58 of the Act is replaced by the following:

Marginal note:Intentional release

58 Every person who intentionally releases or otherwise abandons a human pathogen or toxin in contravention of this Act or the regulations is guilty of an indictable offence and is liable to imprisonment

• (a) for life, if the result causes death or is likely to cause death to any individual;

• (b) for a term of not more than 14 years, if the result creates a risk to the health, safety, or security of the public.

• 436 (1) The portion of section 59 of the Act before paragraph (a) is replaced by the following:

  Marginal note:Defence

  59 No person who establishes that they exercised all due diligence to prevent the contravention of this Act or the regulations may be convicted of that offence, except for an offence under

• (2) Paragraph 59(c) of the Act is repealed.

• (3) Section 59 of the Act is amended by adding the following after paragraph (b):

  • (c) section 56;

437 Section 61 of the Act is replaced by the following:

Marginal note:Continuing offences

61 If an offence under this Act or the regulations is committed or continued on more than one day, the person who committed the offence is liable to be convicted for a separate offence for each day on which it is committed or continued.

438 Subsection 62(1) of the Act is replaced by the following:

Marginal note:Time limit

• 62 (1) Summary conviction proceedings for an offence under this Act or the regulations may be instituted no later than two years after the day on which the subject matter of the proceedings becomes known to the Minister.

439 Section 63 of the Act is replaced by the following:

Marginal note:Directors, officers and agents or mandataries

63 If a person other than an individual commits an offence under this Act or the regulations, any of the person's directors, officers or agents or mandataries who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on conviction to the punishment provided for the offence, whether or not the person has been prosecuted or convicted.

440 The portion of section 64 of the Act before paragraph (a) is replaced by the following:

Marginal note:Offences by employees or agents or mandataries

64 In a prosecution for an offence under this Act or the regulations, it is sufficient proof of the offence to establish that it was committed by the accused's employee acting within the scope of their employment, or the accused's agent or mandatary acting within the scope of their authority, whether or not the employee or agent or mandatary is identified or prosecuted for the offence, unless the accused establishes that

• 441 (1) The portion of section 65 of the English version of the Act before paragraph (a) is replaced by the following:

  Marginal note:Debts due to His Majesty

  65 The following constitute debts due to His Majesty in right of Canada and may be recovered as such in any court of competent jurisdiction:

• (2) Section 65 of the Act is amended by striking out "and" at the end of paragraph (b) and adding the following after paragraph (c):

  • (d) any administrative monetary penalty required to be paid under this Act;

  • (e) any amount that is required to be paid under a compliance agreement entered into under subsection 52.3(1);

  • (f) any amount set out in a notice referred to in paragraph 52.3(4)(a); and

  • (g) the amount of any reasonable expenses incurred in attempting to recover an amount referred to in paragraph (d), (e) or (f).

• 442 (1) The portion of subsection 66(1) of the Act before paragraph (c) is replaced by the following:

  Marginal note:Regulations

  • 66 (1) The Governor in Council may make regulations for carrying out the purposes of this Act, including regulations

    • (a) defining any term that is used but not defined in this Act;

    • (a.1) respecting the safety and security of activities to which this Act or the regulations made under it apply;

    • (a.2) respecting the conduct of controlled activities, including in relation to

      • (i) containment levels for human pathogens or toxins, and

      • (ii) the decontamination of material, equipment, places, conveyances and persons contaminated by human pathogens or toxins;

    • (b) respecting licensing, including the conditions that must be met for a licence to be issued, the conditions that must be complied with under a licence, the renewal, suspension and revocation of a licence and the variation of an existing licence;

• (2) Paragraph 66(1)(c) of the Act is amended by striking out "and" at the end of subparagraph (iii), by adding "and" at the end of subpargraph (iv) and by adding the following after subparagraph (iv):

  • (v) security requirements in relation to information technology;

• (3) The portion of paragraph 66(1)(d) of the Act before subparagraph (i) is replaced by the following:

  • (d) respecting access, including remote access by a means of telecommunication, to facilities in which controlled activities are authorized, including

• (4) Subsection 66(1) of the Act is amended by adding the following after paragraph (e):

  • (e.1) respecting incidents referred to in section 14.1;

• (5) Paragraph 66(1)(f) of the Act is replaced by the following:

  • (f) specifying the human pathogens and toxins for the purposes of subparagraphs 7(2)(c)(i) and (iii) and (d)(i) and (iii) and section 33;

• (6) Paragraph 66(1)(f) of the Act is replaced by the following:

  • (f) specifying the human pathogen and toxins for the purposes of subparagraphs 7(2)(c)(i) and (iii) and (d)(i) and (iii), section 14.1, subsections 18(2.1) and (6.1) and sections 33 and 33.1;

• (7) The portion of paragraph 66(1)(g) of the Act before subparagraph (i) is replaced by the following:

  • (g) respecting security clearances for the purposes of section 33 and regulations made under paragraph (g.1), including

• (8) Subsection 66(1) of the Act is amended by adding the following after paragraph (g):

  • (g.1) respecting, for the purposes of section 33.1, the conditions to be met, which could include requirements for a security clearance, to

    • (i) enter a facility in which controlled activities are authorized in relation to human pathogens or toxins that are referred to in paragraph 33.1(1)(a),

    • (ii) remotely access a facility by a means of telecommunication, or

    • (iii) access sensitive information referred to in paragraph 33.1(1)(c);

  • (g.2) respecting the management of any sensitive information;

• (9) Paragraph 66(1)(h) of the Act is repealed.

• (10) Paragraph 66(1)(i) of English version of the Act is replaced by the following:

  • (i) respecting the qualifications, powers, duties and functions of biological safety officers;

• (11) Paragraph 66(1)(j) of the Act is replaced by the following:

  • (i.1) specifying the powers, duties and functions of the representative for the purposes of subsection 36.1(2);

  • (j) respecting the establishment, content and maintenance of inventories of human pathogens and toxins, as well as the provision of reports on those inventories;

• (12) Subsection 66(1) of the Act is amended by adding the following after paragraph (i.1):

  • (i.2) respecting sensitive information for the purpose of section 56;

• (13) Paragraph 66(1)(l) of the English version of the Act is replaced by the following:

  • (l) respecting the provision of information to the Minister that is necessary for the administration of this Act and the regulations;

• (14) Subsection 66(1) of the Act is amended by adding the following after paragraph (l):

  • (l.1) respecting information that is to be provided to the Minister under subsection 18(2.1) or (6.1);

• (15) Paragraph 66(1)(n) of the Act is replaced by the following:

  • (n) exempting, on any conditions that the Governor in Council deems appropriate, any person or class of persons, any activity or any human pathogen or toxin from the application of any provision of this Act or the regulations if the Governor in Council is of the opinion that the exemption is in the public interest and poses no undue risk to the health, safety or security of the public; and

• (16) Paragraph 66(1)(o) of the French version of the Act is replaced by the following:

  • o) prévoir toute autre mesure d'ordre réglementaire prévue par la présente loi.

• (17) Paragraph 66(1)(p) of the Act is repealed.

• 443 (1) Subsection 67(1) of the Act is replaced by the following:

  Marginal note:Interim orders

  • 67 (1) The Minister may make an interim order containing any provision that may be contained in a regulation made under section 66 if the Minister is of the opinion that prompt measures are required to address a serious or imminent danger to the health, safety or security of the public.

• (2) Paragraph 67(2)(a) of the Act is replaced by the following:

  • (a) 90 days after the day on which it is made, unless it is approved by the Governor in Council,

• (3) Subsection 67(4) of the French version of the Act is replaced by the following:

  • Marginal note:Présomption

    (4) Pour l'application des dispositions de la présente loi — exception faite du présent article  —, la mention des règlements pris en vertu de la présente loi vaut mention des arrêtés d'urgence; en cas de renvoi à la disposition habilitante, elle vaut mention du passage des arrêtés d'urgence comportant les mêmes dispositions qu'un règlement pris en vertu de cette disposition.

444 Sections 68 and 69 of the Act are replaced by the following:

Marginal note:Incorporation by reference — limitation removed

• 68 (1) The limitation set out in paragraph 18.1(2)(a) of the Statutory Instruments Act to the effect that a document must be incorporated as it exists on a particular date does not apply to any power to make regulations under this Act.

• Marginal note:Jointly produced documents

  (2) A regulation may incorporate by reference documents — as they exist on a particular date or as they are amended from time to time — that the Minister produces jointly with another government for the purpose of harmonizing the regulation with other laws.

445 Schedules 1 to 5 to the Act are replaced by the schedule set out in Schedule 5 to this Act.

SOR/2015-44Consequential Amendments to the Human Pathogens and Toxins Regulations

• 446 (1) Paragraph 2(1)(c) of the English version of the Human Pathogens and Toxins Regulations is replaced by the following:

  • (c) any other factor that is relevant to the protection of the health, safety or security of the public.

• (2) Subsection 2(3) of the Regulations is replaced by the following:

  • Marginal note:Renewal

    (3) The Minister may renew a licence on application of the licence holder, for further periods set out in subsection (2), if the requirements in subsections 18(1) to (1.2) of the Act are met.

• 447 (1) The portion of paragraph 4(1)(f) before subparagraph (i) of the Regulations is replaced by the following:

  • (f) a person who discovers during the conduct of a controlled activity that they are inadvertently in possession of a human pathogen or toxin that is not listed in the schedule to the Act in respect of which that controlled activity is not authorized by the licence must take all of the following steps:

• (2) Paragraph 4(2)(c) of the English version of the Regulations is replaced by the following:

  • (c) provide the biological safety officer with any other information that is relevant to preventing any undue risk to the health, safety or security of the public.

448 Section 6 of the Regulations is amended by adding the following after subsection (2):

• Marginal note:Notice to the Minister — risk reduction

  (3) If a human pathogen for which controlled activities are authorized by a licence is modified to the extent that it poses a lower risk to the health of individuals or to public health, the licence holder must, without delay, notify the Minister.

• 449 (1) The portion of subsection 10(1) of the Regulations before paragraph (a) is replaced by the following:

  Marginal note:Registry and List

  • 10 (1) The following human pathogens and toxins are prescribed for the purposes of the Act:

• (2) Paragraph 10(1)(b) of the Regulations is replaced by the following:

  • (b) toxins that

    • (i) are on that List and listed in the registry, and

    • (ii) are present in a part of a facility in a quantity that is equal to or greater than the minimum quantity at which, in the opinion of the Minister, they pose a moderate to high risk to the health, safety or security of the public due to a reasonable risk of intentional use as a biological weapon.

• (3) Subsection 10(2) of the Regulations and the table in section 10 are repealed.

• 450 (1) The portion of section 14 of the English version of the Regulations before paragraph (a) is replaced by the following:

  14 The Minister must issue a security clearance if the Minister determines that the applicant does not pose an undue risk to the health, safety or security of the public after considering the information obtained under sections 12 and 13 and taking the following factors into account:

• (2) Subparagraph 14(b)(iii) of the Regulations is replaced by the following:

  • (iii) is or has been a member of a terrorist group or is or has been involved in — or contributes or has contributed to — the activities of such a group,

• (3) Paragraph 14(c) of the English version of the Regulations is replaced by the following:

  • (c) whether there are reasonable grounds to suspect that the applicant is in a position in which there is a risk that they could be induced to commit an act or to assist or abet any person to commit an act that might constitute an undue risk to the health, safety or security of the public;

451 Subsection 21(1) of the English version of the Regulations is replaced by the following:

• (1) The Minister must revoke a security clearance if the Minister determines that the holder of the security clearance poses an undue risk to the health, safety or security of the public after considering any of the information described in paragraphs 20(a) to (c).

452 Section 26 of the Regulations is repealed.

Transitional Provisions

Marginal note:Words and expressions

• 453 (1) The words and expressions used in this section and sections 454 and 455 have the same meaning as in the Human Pathogens and Toxins Act.

• Marginal note:Duties

  (2) On the day on which section 406 comes into force, any person who, under paragraph 7(2)(c) or (d) of the Human Pathogens or Toxins Act, conducts controlled activities that are not authorized by their licence, must, within 90 days after that day, either apply to the Minister to vary their licence to authorize those activities or stop conducting those activities.

• Marginal note:No contravention

  (3) A person referred to in subsection (2) does not contravene subsection 7(1) of the Human Pathogens or Toxins Act if they comply with subsection (2).

Marginal note:Licence holder representative

454 After the day on which section 423 comes into force, a licence holder that is an organization must, without delay, provide the Minister with the name of its representative.

Marginal note:Validity period — extension

455 The validity period of a licence may be extended for a period of up to 60 days beginning on the day on which this Act comes into force if

• (a) the validity period of the licence ends within 30 days after the day on which this Act comes into force; and

• (b) on that day of coming into force, the licence holder, its representative, if any, or the biological safety officer designated for the licence do not meet the requirements referred to in subsection 18(1.1) of the Human Pathogen and Toxins Act.

Coming into Force

Marginal note:Order in council

• 456 (1) Subsection 402(3), section 413, subsections 415(3), (8) and (9), sections 421 and 422, subsections 442(4), (6) to (9) and (14) and subsection 450(2) come into force on a day or days to be fixed by order of the Governor in Council.

• Marginal note:Order in council

  (2) Subsection 409(4), sections 414 and 431 and subsection 441(2) come into force on a day to be fixed by order of the Governor in Council.

• Marginal note:Order in council

  (3) Section 433 and subsections 436(3) and 442(12) come into force on a day to be fixed by order of the Governor in Council.

DIVISION 261997, c. 36Customs Tariff

Amendments to the Act

457 Paragraphs 109(c) and (d) of the Customs Tariff are replaced by the following:

• (c) either

  • (i) destroyed in the manner that the Minister of Public Safety and Emergency Preparedness may direct, or

  • (ii) subject to regulations made under section 109.1, donated to a registered charity, as defined in subsection 248(1) of the Income Tax Act, in the manner that that Minister may direct and for any purpose that that Minister may specify; and

• (d) not damaged before their destruction or donation.

458 The Act is amended by adding the following after section 109:

Marginal note:Regulations — donated goods

109.1 The Governor in Council may, on the recommendation of the Minister, make regulations prescribing the goods or classes of goods that may be donated for the purposes of subparagraph 109(c)(ii).

Coming into Force

Marginal note:Order in council

459 This Division comes into force on a day to be fixed by order of the Governor in Council.

DIVISION 27R.S., c. E-19Export and Import Permits Act

Amendments to the Act

460 Subsection 3(1) of the Export and Import Permits Act is amended by striking out "or" at the end of paragraph (f) and by adding the following after paragraph (g):

• (h) to ensure that the supply and distribution of the article in Canada or internationally are consistent with Canada's economic security interests; or

• (i) to respond to acts, policies or practices of a foreign country or an association of countries that might be detrimental to Canada's economic security interests.

461 Subsection 5(1) of the Act is amended by striking out "or" at the end of paragraph (e), by adding "or" at the end of paragraph (f) and by adding the following after paragraph (f):

• (g) to ensure that the supply and distribution of the article in Canada or internationally are consistent with Canada's economic security interests.

Coming into Force

Marginal note:Order in council

462 This Division comes into force on a day to be fixed by order of the Governor in Council.

DIVISION 28R.S., c. A-2Aeronautics Act

Amendments to the Act

• 463 (1) The definition Canadian aviation document in subsection 3(1) of the Aeronautics Act is replaced by the following:

  Canadian aviation document

  Canadian aviation document means, subject to subsections (3) and (4), any licence, permit, accreditation, certificate or other document issued by the Minister under Part I to or with respect to any person or in respect of any aeronautical product, aerodrome, facility or service; (document d'aviation canadien)

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

  goods

  goods means anything that may be taken or placed on board an aircraft, or that may be brought into an aerodrome or other aviation facility, including personal belongings, baggage, cargo and conveyances; (bien)

• (3) Subsection 3(3) 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) an authorization issued under section 7.42.

• (4) Section 3 of the Act is amended by adding the following after subsection (3):

  • Marginal note:Exception — ministerial authorizations

    (4) An authorization granted under subsection 4.3(1), (1.1) or (3) is not a Canadian aviation document.

464 Subsection 4(1) of the Act is replaced by the following:

Marginal note:Application of Part

• 4 (1) Subject to any regulations under paragraph 4.9(w), this Part applies in respect of aeronautics to

  • (a) all persons and all aeronautical products and other things in Canada;

  • (b) all persons outside Canada who hold Canadian aviation documents;

  • (c) all Canadian aircraft outside Canada and all passengers and crew members on Canadian aircraft outside Canada; and

  • (d) all persons and goods on board aircraft bound for Canada.

465 The Act is amended by adding the following after section 4.1:

Marginal note:Manner of service

• 4.11 (1) If a provision of this Part or of any regulation, notice, order, security measure or emergency direction made under this Part requires a notice or other document to be served personally or by registered or certified mail, it may also be served by electronic means.

• Marginal note:Proof of service

  (2) Service by electronic means may be proved by a record of electronic transmission setting out the date and time of transmission.

• Marginal note:Date service effective

  (3) Service by electronic means is considered effective on the day on which it is sent, as indicated on the record of transmission.

466 Subsection 4.2(1) of the Act is amended by striking out "and" at the end of paragraph (n) and by adding the following after that paragraph:

• (n.1) manage the use of remotely piloted aircraft systems and equipment or systems that can cause interference with the operation of remotely piloted aircraft systems; and

467 Section 4.7 of the Act is replaced by the following:

Marginal note:Definition of screening

4.7 In sections 4.71 to 4.85, screening means a screening, including a search, carried out in the manner and under the circumstances prescribed in aviation security regulations, security measures, emergency directions or interim orders.

468 Paragraph 4.71(2)(k) of the Act is replaced by the following:

• (k) requiring a person or class of persons having aviation security responsibilities to develop and document security management systems or other systems in relation to aviation security and to keep them up to date;

• (k.1) requiring a person or class of persons having aviation security responsibilities to develop and document processes, procedures, programs or plans in relation to aviation security and to keep them up to date;

• (k.2) requiring a person or class of persons having aviation security responsibilities to develop documents, such as manuals, in relation to aviation security and to keep them up to date;

• (k.3) respecting the content and requirements of a system, process, procedure, program, plan or document referred to in any of paragraphs (k) to (k.2);

• (k.4) requiring a person or class of persons having aviation security responsibilities to comply with the provisions or requirements of a system, process, procedure, program, plan or document referred to in any of paragraphs (k) to (k.2);

469 Section 4.87 of the Act is replaced by the following:

Marginal note:No offence or violation

4.87 A person authorized by the Minister to verify compliance with aviation security regulations, security measures, emergency directions or interim orders, or to test the effectiveness of equipment, systems and processes used with respect to aircraft, aerodromes and other aviation facilities, does not commit an offence or violation if the person commits any act or omission that is required in the course of any such verification or testing and that would otherwise constitute a contravention of an aviation security regulation, a security measure, an emergency direction or an interim order.

470 The Act is amended by adding the following before section 4.9:

Regulations — General

471 The Act is amended by adding the following after section 4.9:

Marginal note:Contents of regulations

4.901 Without limiting the generality of section 4.9, regulations may be made under that section

• (a) requiring a person or class of persons having aviation safety responsibilities to develop and document safety management systems or other systems in relation to aviation safety and to keep them up to date;

• (b) requiring a person or class of persons having aviation safety responsibilities to develop and document processes, procedures, programs or plans in relation to aviation safety and to keep them up to date;

• (c) requiring a person or class of persons having aviation safety responsibilities to develop documents, such as manuals, in relation to aviation safety and to keep them up to date;

• (d) respecting the content and requirements of a system, process, procedure, program, plan or document referred to in any of paragraphs (a) to (c); and

• (e) requiring a person or class of persons having aviation safety responsibilities to comply with the provisions or requirements of a system, process, procedure, program, plan or document referred to in any of paragraphs (a) to (c).

Civil Air Navigation Service Level

472 The Act is amended by adding the following after section 4.91:

Hours of Work and Insurance

473 The Act is amended by adding the following after section 5:

Prohibitions and Restrictions on the Operation of Aircraft

474 The Act is amended by adding the following after section 5.1:

Systems, Processes, Procedures, Programs, Plans and Documents

Definition of regulatory requirement

5.11 In sections 5.12 to 5.14, regulatory requirement means a requirement of a regulation made under subsection 4.71(1) or section 4.9 or a requirement of a security measure.

Marginal note:Notice — deficiencies

5.12 If a person has developed and is keeping up to date a system, process, procedure, program, plan or document under a regulatory requirement and the Minister is of the opinion that the system, process, procedure, program, plan or document has deficiencies that risk compromising aviation safety or security, the Minister may, by notice sent to the person, require the person to take the necessary corrective measures within a period specified by the Minister.

Marginal note:Notice — operations

5.13 If a person has developed and is keeping up to date a system, process, procedure, program, plan or document under a regulatory requirement and the Minister is of the opinion that the person is carrying out an operation referred to in that system, process, procedure, program, plan or document in a manner that risks compromising aviation safety or security, the Minister may, by notice sent to the person, require the person to take the necessary corrective measures within a period specified by the Minister.

Marginal note:Statutory Instruments Act

5.14 The Statutory Instruments Act does not apply to the following documents:

• (a) a document developed for the purpose of documenting a system, process, procedure, program or plan under a regulatory requirement;

• (b) a document developed under a regulatory requirement;

• (c) a document the provisions or requirements of which a person is to comply with under a regulatory requirement; and

• (d) a notice referred to in section 5.12 or 5.13.

Radiocommunication Act and Explosives Act

475 The Act is amended by adding the following after section 5.3:

Voluntary Provision of Information

Marginal note:Provision of information

• 5.31 (1) For the purpose of promoting aviation safety and security, the Minister may

  • (a) establish and administer programs under which a person or organization may provide information related to aviation safety or security; and

  • (b) enter into arrangements or agreements with any person or organization respecting the provision of information related to aviation safety or security.

• Marginal note:Regulations

  (2) The Governor in Council may make regulations respecting the programs, arrangements and agreements referred to in subsection (1) and, without restricting the generality of the foregoing, may make regulations prescribing circumstances for the purposes of paragraph 5.32(j) or 5.33(f).

Marginal note:Non-disclosure of information

5.32 Information obtained by the Minister under a program, arrangement or agreement referred to in subsection 5.31(1) is confidential and must not be disclosed by any person unless

• (a) the person or organization that provided the information consents in writing to its disclosure;

• (b) the information is required to be provided under this Act;

• (c) the information was also obtained by means other than under the program, arrangement or agreement;

• (d) the disclosure is required under an Act of Parliament;

• (e) the disclosure is required for compliance with a subpoena or document issued or order made by a court, person or body with jurisdiction to compel the production of information or for compliance with rules of court relating to the production of information;

• (f) the information relates to

  • (i) a contravention of any provision of this Part or any regulation, notice, order, security measure or emergency direction made under this Part, and

  • (ii) an accident or a security incident that must be reported under this Act or an accident that must be reported under the Canadian Transportation Accident Investigation and Safety Board Act;

• (g) the information relates to a contravention of subsection 7.3(1) or 7.41(1);

• (h) the information relates to a contravention of any provision of this Part — other than subsection 7.3(1) or 7.41(1) — or any regulation, notice, order, security measure or emergency direction made under this Part and the Minister has reasonable grounds to believe that the contravention was committed knowingly or under circumstances amounting to gross negligence or, in Quebec, gross fault;

• (i) the disclosure is, in the Minister's opinion, necessary to deal with

  • (i) a significant risk, direct or indirect, to aviation safety or the safety of the public, or

  • (ii) an immediate threat to aviation security, the security of any aircraft or aerodrome or other aviation facility or the safety of the public, passengers or crew members; or

• (j) the disclosure is authorized in the circumstances prescribed by regulations.

Marginal note:Protection

5.33 Any information provided under a program, arrangement or agreement referred to in subsection 5.31(1) is not to be used against the person who provided it in any proceedings in respect of a contravention under this Act unless

• (a) the information is required to be provided under this Act;

• (b) the information was also obtained by means other than under the program, arrangement or agreement;

• (c) the information relates to

  • (i) a contravention of any provision of this Part or any regulation, notice, order, security measure or emergency direction made under this Part, and

  • (ii) an accident or a security incident that must be reported under this Act or an accident that must be reported under the Canadian Transportation Accident Investigation and Safety Board Act;

• (d) the information relates to a contravention of subsection 7.3(1) or 7.41(1);

• (e) the information relates to a contravention of any provision of this Part — other than subsection 7.3(1) or 7.41(1) — or any regulation, notice, order, security measure or emergency direction made under this Part and the Minister has reasonable grounds to believe that the contravention was committed knowingly or under circumstances amounting to gross negligence or, in Quebec, gross fault; or

• (f) the circumstances prescribed by regulations exist.

• 476 (1) Subsection 6.41(1) of the Act is amended by striking out "or" at the end of paragraph (b) and by adding the following after paragraph (c):

  • (d) to give effect to an international standard; or

  • (e) to give effect to an international agreement, convention or arrangement to which Canada is a party.

• (2) Subsection 6.41(1.1) of the Act is replaced by the following:

  • Marginal note:Authorized deputy may make interim order

    (1.1) The Minister may authorize, subject to any restrictions or conditions that the Minister may specify, their deputy to make, for any reason referred to in any of paragraphs (1)(a) to (e), an interim order that contains any provision that may be contained in a regulation made under this Part.

• (3) Subsection 6.41(2) of the Act is replaced by the following:

  • Marginal note:Cessation of effect

    (2) An interim order has effect from the day on which it is made, as if it were a regulation made under this Part, and ceases to have effect one year after the day on which it is made unless it is approved by the Governor in Council within that one-year period.

• (4) Paragraph 6.41(3)(b) of the English version of the Act is replaced by the following:

  • (b) where no such regulation is made, three years after the day on which the interim order is made.

477 Subsection 7.21(1) of the Act is replaced by the following:

Marginal note:Default in payment

• 7.21 (1) The Minister may suspend, or refuse to issue, amend or renew, a Canadian aviation document if a certificate under section 8.11 has been issued to the Minister in respect of the applicant for, or the holder of, the document or in respect of the owner or operator of an aircraft, aerodrome, airport or other facility to which the document relates.

• 478 (1) Subsection 7.3(1) of the Act is amended by adding the following after paragraph (d):

  • (d.1) except as authorized under this Part and subject to subsection (1.1), intentionally interfere with the operation of a remotely piloted aircraft system, or with the performance of the duties of any crew member of a remotely piloted aircraft system, while the system is powered on;

• (2) Section 7.3 of the Act is amended by adding the following after subsection (1):

  • Marginal note:Exception — authorized activities

    (1.1) Paragraph (1)(d.1) does not apply to a person who is carrying out activities that they are authorized to carry out for the purpose of defence.

• (3) Subsections 7.3(3.1) to (5.1) of the Act are replaced by the following:

  • Marginal note:Punishment — individuals

    (4) An individual who is convicted of an offence under this Part punishable on summary conviction is liable to a fine not exceeding $150,000 and, in the case of an offence referred to in subsection (1), to imprisonment for a term not exceeding one year or to both fine and imprisonment.

  • Marginal note:Punishment — corporations

    (5) A corporation that is convicted of an offence under this Part punishable on summary conviction is liable to a fine not exceeding $1,500,000.

  • Marginal note:Punishment — ANS Corporation

    (5.1) Despite subsection (5), if the ANS Corporation is convicted of contravening an order made under subsection 4.91(1), the ANS Corporation is liable to a fine not exceeding $1,500,000 for each day or part of a day the offence continues.

• (4) Subsection 7.3(7.1) of the Act is repealed.

479 The Act is amended by adding the following after section 7.41:

Marginal note:Authorization — interference

• 7.42 (1) The Minister may, on any terms that the Minister considers appropriate, authorize any person or class of persons to interfere with the operation of a remotely piloted aircraft system or with the performance of the duties of any crew member of a remotely piloted aircraft system if the issuance of authorization is, in the Minister's opinion, in the public interest or necessary for aviation safety or security.

• Marginal note:Suspension, cancellation or amendment

  (2) The Minister may suspend, cancel or amend an authorization if the suspension, cancellation or amendment is, in the Minister's opinion, in the public interest or necessary for aviation safety or security.

480 The heading before section 7.6 of the Act is replaced by the following:

Marginal note:Vicarious liability — owners of aircraft

7.51 If a person may be charged with and found guilty of an offence under this Part relating to an aircraft, the registered owner of the aircraft may be charged with and found guilty of the offence — whether or not the person is identified or prosecuted for the offence — unless, at the time of the offence, the aircraft was in the possession of a person other than the owner without the owner's consent.

Marginal note:Vicarious liability — operators of aircraft

7.52 If a person may be charged with and found guilty of an offence under this Part relating to an aircraft, the operator of the aircraft may be charged with and found guilty of the offence — whether or not the person is identified or prosecuted for the offence — unless, at the time of the offence, the aircraft was in the possession of a person other than the operator without the operator's consent.

Marginal note:Vicarious liability — pilots-in-command

7.53 If a crew member may be charged with and found guilty of an offence under this Part relating to an aircraft, the pilot-in-command of the aircraft may be charged with and found guilty of the offence — whether or not the crew member is identified or prosecuted for the offence — unless the offence was committed without the consent of the pilot-in-command.

Marginal note:Proof of offence

7.54 In a prosecution of any of the following persons for an offence under this Part, it is sufficient proof of the offence to establish that the act or omission that constitutes the offence was committed by an employee or agent or mandatary of the person, whether or not the employee or agent or mandatary is identified or prosecuted for the offence:

• (a) the registered owner of an aircraft;

• (b) the operator of an aircraft;

• (c) the operator of an aerodrome or other aviation facility;

• (d) an air traffic service provider;

• (e) an organization that holds a Canadian aviation document authorizing the maintenance of an aeronautical product or the provision of a maintenance service.

Marginal note:Exceptions

7.55 Sections 7.51 to 7.54 do not apply to an offence relating to a contravention of subsection 7.3(1) or 7.41(1).

Marginal note:Due diligence defence

• 7.56 (1) A person is not to be found guilty of an offence under this Part if they establish that they exercised all due diligence to prevent the commission of the offence.

• Marginal note:Exceptions

  (2) Subsection (1) does not apply to an offence relating to a contravention of subsection 7.3(1) or 7.41(1).

Administrative Monetary Penalties

• 481 (1) Paragraphs 7.6(1)(a) to (b) of the Act are replaced by the following:

  • (a) designate as a provision the contravention of which may be proceeded with as a violation in accordance with sections 7.61 to 8.2, any provision of this Part or of any regulation, notice, order or security measure made under this Part, or any provision of the Secure Air Travel Act or of any regulation or direction made under that Act; and

  • (b) prescribe the maximum amount payable for each violation, not to exceed

    • (i) $150,000, in the case of an individual, and

    • (ii) $1,500,000, in the case of a corporation.

• (2) Subsection 7.6(2) of the Act is repealed.

482 The Act is amended by adding the following after section 7.6:

Marginal note:Violation

• 7.61 (1) Every person who contravenes a provision designated under paragraph 7.6(1)(a) commits a violation and is liable to a penalty not exceeding the maximum amount prescribed under paragraph 7.6(1)(b).

• Marginal note:Continuing violation

  (2) A violation that is committed or continued on more than one flight or segment of a flight constitutes a separate violation for each flight or segment of a flight on which the violation is committed or continued.

• Marginal note:Manner of proceeding

  (3) If a contravention of a provision designated under paragraph 7.6(1)(a) may be proceeded with as a violation or as an offence, proceeding with it in one manner precludes proceeding in the other.

• Marginal note:Nature of violation

  (4) For greater certainty, a violation is not an offence and, accordingly, section 126 of the Criminal Code does not apply in respect of a violation.

• Marginal note:Due diligence defence

  (5) A person is not to be found liable for a violation if they establish that they exercised all due diligence to prevent its commission.

• Marginal note:Vicarious liability — owners of aircraft

  (6) If a person may be proceeded against under this Part for a violation relating to an aircraft, the registered owner of the aircraft may be proceeded against for the violation — whether or not the person is identified or proceeded against for the violation — unless, at the time of the violation, the aircraft was in the possession of a person other than the owner without the owner's consent.

• Marginal note:Vicarious liability — operators of aircraft

  (7) If a person may be proceeded against under this Part for a violation relating to an aircraft, the operator of the aircraft may be proceeded against for the violation — whether or not the person is identified or proceeded against for the violation — unless, at the time of the violation, the aircraft was in the possession of a person other than the operator without the operator's consent.

• Marginal note:Vicarious liability — pilots-in-command

  (8) If a crew member may be proceeded against under this Part for a violation relating to an aircraft, the pilot-in-command of the aircraft may be proceeded against for the violation — whether or not the crew member is identified or proceeded against for the violation — unless the violation was committed without the consent of the pilot-in-command.

• Marginal note:Proof of violation

  (9) In any proceedings under this Part against any of the following persons for a violation, it is sufficient proof of the violation to establish that the act or omission that constitutes the violation was committed by an employee or agent or mandatary of the person, whether or not the employee or agent or mandatary is identified or proceeded against for the violation:

  • (a) the registered owner of an aircraft;

  • (b) the operator of an aircraft;

  • (c) the operator of an aerodrome or other aviation facility;

  • (d) an air traffic service provider;

  • (e) an organization that holds a Canadian aviation document authorizing the maintenance of a aeronautical product or the provision of a maintenance service.

Marginal note:Assurance of compliance — no notice served

• 7.62 (1) If the Minister has reasonable grounds to believe that a person who has not been served with a notice of violation under section 7.7 has committed a violation, the Minister may enter into an assurance of compliance with the person that

  • (a) identifies the violation and provides that the person will comply with the provision to which the violation relates within the period and subject to the terms and conditions specified in the assurance;

  • (b) sets out the amount and form of any security that, pending compliance with the assurance, is to be deposited with the Minister; and

  • (c) sets out the penalty that the person would have been liable to pay for the violation if the assurance had not been entered into.

• Marginal note:Extension of period

  (2) The Minister may extend the period specified under paragraph (1)(a) if the Minister is satisfied that the person is unable to comply with the assurance of compliance for reasons beyond the person's control.

• Marginal note:Deemed violation

  (3) A person who enters into an assurance of compliance is deemed to have committed the violation in respect of which the assurance was entered into, unless they request a review under subsection (4).

• Marginal note:Request for review

  (4) A person who enters into an assurance of compliance may, within 48 hours after the assurance is signed, unless a notice of default has been served under subsection (6), file a request with the Tribunal for a review of the facts of the violation, in which case the assurance is deemed to be a notice of violation and a review of the facts of the violation and the amount of the penalty is deemed to have been requested under section 7.91.

• Marginal note:Notice of compliance

  (5) If the Minister is satisfied that a person has complied with an assurance of compliance, the Minister shall cause a notice to that effect to be served on the person and, on the service of the notice,

  • (a) no further proceedings may be taken against the person with respect to the violation in respect of which the assurance was entered into; and

  • (b) any security deposited under paragraph (1)(b) shall be returned to the person.

• Marginal note:Notice of default

  (6) If the Minister is of the opinion that a person has not complied with an assurance of compliance, the Minister shall cause a notice of default to be served on the person to the effect that

  • (a) the person is liable to pay, within the time and in the manner specified in the notice of default, twice the amount of the penalty set out in the assurance without taking into account the limit specified in paragraph 7.6(1)(b); or

  • (b) any security deposited under paragraph (1)(b) is forfeited to His Majesty in right of Canada.

• Marginal note:Contents of notice

  (7) The notice of default shall indicate the date, which shall be 30 days after the day on which the notice is served, on or before which a request for a review may be filed and the address where the request may be filed and shall include the particulars concerning the procedure for requesting a review.

• Marginal note:No set-off or compensation

  (8) On the service of a notice of default, the person served has no right of set-off or compensation against any amount that they spent under the assurance of compliance.

• Marginal note:Return of security

  (9) Any security deposited under subsection (1) shall be returned to the person if

  • (a) a notice is served under subsection (6) and the person pays double the amount of the penalty set out in the assurance of compliance; or

  • (b) a member determines under section 8 or an appeal panel decides under section 8.1 that the person has complied with the assurance.

• 483 (1) Subsection 7.7(1) of the Act is replaced by the following:

  Marginal note:Notice of violation

  • 7.7 (1) If the Minister believes on reasonable grounds that a person has committed a violation, the Minister may issue a notice of violation in respect of the alleged contravention and shall cause it to be served on the person by personal service or by registered or certified mail sent to the person at their latest known address.

• (2) The portion of subsection 7.7(2) of the French version of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Contenu du procès-verbal

    (2) Le procès-verbal est établi en la forme que le gouverneur en conseil peut fixer par règlement. Y sont notamment indiqués :

• (3) Paragraph 7.7(2)(a) of the Act is replaced by the following:

  • (a) the violation;

• (4) Paragraphs 7.7(2)(b) and (c) of the French version of the Act are replaced by the following:

  • b) sous réserve des règlements pris en vertu de l'alinéa 7.6(1)b), le montant qu'il détermine, conformément aux critères qu'il peut établir à cette fin, et qui doit être payé à titre de pénalité pour la contravention lorsque la personne ne désire pas comparaître devant un conseiller pour présenter ses observations sur les faits reprochés;

  • c) la date limite, qui suit de trente jours celle de signification ou d'expédition du procès-verbal, et le lieu du versement de la pénalité visée à l'alinéa b) ou du dépôt d'une éventuelle requête en révision.

484 Section 7.8 of the French version of the Act is replaced by the following:

Marginal note:Option

7.8 Le destinataire du procès-verbal doit soit payer la pénalité, soit déposer une requête en révision des faits reprochés ou du montant de la pénalité.

485 Section 7.9 of the Act is replaced by the following:

Marginal note:Payment of specified amount precludes further proceedings

7.9 If a person who is served with or sent a notice under subsection 7.7(1) pays the amount specified in the notice in accordance with the requirements set out in the notice, the Minister shall accept the amount as and in complete satisfaction of the amount of the penalty for the violation and no further proceedings under this Part shall be taken against the person in respect of that violation.

Marginal note:Request for compliance agreement — notice served

7.901 Instead of paying the penalty set out in the notice of violation, the person served with the notice may, within the time and in the manner specified in the notice, request to enter into a compliance agreement with the Minister under section 7.902 that ensures the person's compliance with the provision to which the violation relates.

Marginal note:Compliance agreement — notice served

• 7.902 (1) The Minister may, on application made under section 7.901, enter into a compliance agreement with a person who has been served with a notice of violation on any terms and conditions that are satisfactory to the Minister. The terms and conditions may

  • (a) include a provision for the deposit of reasonable security, in a form and amount satisfactory to the Minister, as a guarantee that the person will comply with the compliance agreement; and

  • (b) provide for the reduction, in whole or in part, of the penalty for the violation.

• Marginal note:Deemed violation

  (2) A person who enters into a compliance agreement with the Minister under subsection (1) is deemed to have committed the violation in respect of which the agreement was entered into.

• Marginal note:Notice of compliance

  (3) If the Minister is satisfied that a person has complied with a compliance agreement, the Minister shall cause a notice to that effect to be served on the person, at which time

  • (a) the proceedings commenced in respect of the violation are ended; and

  • (b) any security deposited under paragraph (1)(a) shall be returned to the person.

• Marginal note:Notice of default

  (4) If the Minister is of the opinion that a person has not complied with a compliance agreement, the Minister shall cause a notice of default to be served on the person to the effect that

  • (a) instead of being liable to pay the amount of the penalty set out in the notice of violation, the person is liable to pay, within the time and in the manner specified in the notice of violation, twice the amount of that penalty, without taking into account the limits specified in paragraph 7.6(1)(b); or

  • (b) any security deposited under paragraph (1)(a) is forfeited to His Majesty in right of Canada.

• Marginal note:Effect of notice of default

  (5) On the service of a notice of default, the person served has no right of set-off or compensation against any amount that they spent under the compliance agreement and

  • (a) the person is liable to pay the amount set out in the notice of default within the time and in the manner specified in the notice of violation; or

  • (b) if the notice provides for the forfeiture of the security deposited under the compliance agreement, that security is forfeited to His Majesty in right of Canada and the proceedings commenced in respect of the violation are ended.

• Marginal note:Effect of payment

  (6) If a person served with a notice of default pays the amount set out in the notice of default within the time and in the manner specified in the notice of violation, the Minister shall accept the amount as and in complete satisfaction of the amount of the penalty for the violation and no further proceedings under this Part shall be taken against the person in respect of that violation.

Marginal note:Refusal to enter into compliance agreement

• 7.903 (1) If the Minister refuses to enter into a compliance agreement requested under section 7.901, the person who made the request may, within the time specified by the Minister and in the manner specified in the notice of violation,

  • (a) pay the amount of the penalty set out in the notice of violation; or

  • (b) file a request for a review under subsection 7.91(1).

• Marginal note:Effect of payment

  (2) If a person pays the amount set out in the notice of violation within the time specified by the Minister and in the manner specified in the notice of violation, the Minister shall accept the amount as and in complete satisfaction of the amount of the penalty for the violation and no further proceedings under this Part shall be taken against the person in respect of that violation.

• 486 (1) Subsection 7.91(1) of the French version of the Act is replaced by the following:

  Marginal note:Requête en révision

  • 7.91 (1) Le destinataire du procès-verbal qui veut faire réviser la décision du ministre à l'égard des faits reprochés ou du montant de la pénalité dépose une requête auprès du Tribunal à l'adresse indiquée dans le procès-verbal, au plus tard à la date limite qui y est indiquée, ou dans le délai supérieur éventuellement accordé à sa demande par le Tribunal.

• (2) Section 7.91 of the Act is amended by adding the following after subsection (1):

  • Marginal note:Request for review of compliance

    (1.1) A person who is served with a notice of default under subsection 7.62(6) and who wishes to have the Minister's decision made under that subsection reviewed shall, on or before the date specified in the notice — or within any further time that the Tribunal on application may allow — file a written request for a review with the Tribunal.

• (3) Subsection 7.91(2) of the English version of the Act is replaced by the following:

  • Marginal note:Time and place for review

    (2) On receipt of a request, the Tribunal shall appoint a time and place for the review and shall notify the Minister and the person who filed the request of the time and place in writing.

• (4) Subsection 7.91(4) of the Act is replaced by the following:

  • Marginal note:Burden of proof

    (4) The burden of establishing that a person has committed a violation or has not complied with the assurance of compliance referred to in the notice of default is on the Minister.

• (5) Subsection 7.91(5) of the English version of the Act is replaced by the following:

  • Marginal note:Person not compelled to testify

    (5) A person who is alleged to have committed a violation is not required, and shall not be compelled, to give any evidence or testimony in the matter.

• (6) Section 7.91 of the Act is amended by adding the following after subsection (5):

  • Marginal note:Certain defences not available

    (6) Despite subsection 7.61(5), for the purposes of a request for review under subsection (1.1) a person does not have a defence by reason that the person exercised all due diligence to comply with the assurance of compliance.

487 Section 7.92 of the Act is replaced by the following:

Marginal note:Failure to pay

7.92 A person who fails to pay the amount of the penalty specified in a notice of violation within the specified time and who does not file a request for a review is deemed to have committed the violation alleged in the notice.

• 488 (1) The portion of section 8 of the English version of the Act before paragraph (a) is replaced by the following:

  Marginal note:Determination by Tribunal member

  8 At the conclusion of a review, the member of the Tribunal who conducts the review shall without delay inform the Minister and the person alleged to have committed a violation

• (2) Paragraphs 8(a) and (b) of the Act are replaced by the following:

  • (a) that the person has not committed a violation, in which case, subject to section 8.1, no further proceedings under this Part shall be taken against the person in respect of the alleged violation;

  • (b) that the person has committed a violation and, subject to any regulations made under paragraph 7.6(1)(b), of the amount that must be paid to the Tribunal by or on behalf of the person and the time within which it must be paid;

  • (c) that the person has complied with the assurance of compliance, in which case, subject to section 8.1, no further proceedings under this Part shall be taken against the person in respect of the alleged violation; or

  • (d) that the person has not complied with the assurance of compliance, in which case, the member confirms the decision made by the Minister under subsection 7.62(6).

489 Subsections 8.1(3) and (4) of the Act are replaced by the following:

• Marginal note:Disposition of appeal

  (3) The appeal panel of the Tribunal assigned to hear an appeal may

  • (a) in the case of a determination made under paragraph 8(a) or (b), dismiss the appeal or allow the appeal and, subject to any regulations made under paragraph 7.6(1)(b), substitute its own decision; or

  • (b) in the case of a determination made under paragraph 8(c) or (d), dismiss the appeal or allow the appeal and substitute its own decision.

• Marginal note:Finding of violation

  (4) After making its decision, the appeal panel shall inform the person and the Minister of its decision without delay and specify the period within which any amount determined by the appeal panel to be payable to the Tribunal is to be paid.

490 The Act is amended by adding the following after section 8.1:

Marginal note:Certificate

8.11 The Minister may obtain from the Tribunal or the member, as the case may be, a certificate in the form prescribed by the Governor in Council setting out the amount of the penalty required to be paid by a person who fails, within the time required,

• (a) to pay the amount of a penalty set out in a notice of violation, or in a notice of default served under subsection 7.62(6) or 7.902(4), or to file a request for a review under section 7.91;

• (b) to pay an amount set out in a determination made under paragraph 8(b) or in a decision confirmed under paragraph 8(d) or file an appeal under section 8.1; or

• (c) to pay an amount determined under subsection 8.1(4).

491 Subsection 8.2(1) of the Act is replaced by the following:

Marginal note:Registration of certificate

• 8.2 (1) On production in any superior court, a certificate issued under section 8.11 shall be registered in the court and, when so registered, a certificate has the same force and effect, and proceedings may be taken in connection with it, as if it were a judgment in that court obtained by His Majesty in right of Canada against the person named in the certificate for a debt of the amount set out in the certificate.

492 The heading before section 8.4 and sections 8.4 and 8.5 of the Act are replaced by the following:

Admissibility of Evidence

493 The Act is amended by adding the following before section 8.7:

Powers to Enter, Seize and Detain

494 Paragraph 17(2)(b) of the Act is replaced by the following:

• (b) has observer status or is an accredited representative or an adviser to an accredited representative, under an international agreement, convention or arrangement relating to transportation to which Canada is a party; or

Transitional Provisions

Marginal note:Aviation security regulations

495 Regulations described in paragraph 4.71(2)(k.4) of the Aeronautics Act may be made under subsection 4.71(1) of that Act in relation to a system, process, procedure, program, plan or document that a person established, developed or otherwise has in accordance with a regulation that was made under that subsection before the day on which this section comes into force.

Marginal note:Aviation safety regulations

496 Regulations described in paragraph 4.901(e) of the Aeronautics Act may be made under section 4.9 of that Act in relation to a system, process, procedure, program, plan or document that a person established, developed or otherwise has in accordance with a regulation that was made under that section before the day on which this section comes into force.

R.S., c. A-1Consequential Amendment to the Access to Information Act

497 Schedule II to the Access to Information Act is amended by replacing "subsections 4.79(1), 6.5(5), 22(2) and 24.2.(4)" opposite "Aeronautics Act" with "subsection 4.79(1), section 5.32 and subsections 6.5(5), 22(2) and 24.2(4)".

2019, c. 29Related Amendment to the Budget Implementation Act, 2019, No. 1

498 Section 272 of the Budget Implementation Act, 2019, No. 1 is repealed.

DIVISION 291996, c. 10Canada Transportation Act

499 The Canada Transportation Act is amended by adding the following after section 49:

Interim Order

Marginal note:Interim order

• 49.1 (1) The Minister may make an interim order that contains any provision that may be contained in a regulation described in subsection (2) or that varies or suspends any requirement or condition set out in such a regulation, if the Minister is of the opinion that it is in the public interest to do so, having regard to the purposes of the Act of Parliament under which the regulation may be made, and if the interim order

  • (a) gives effect to an international standard; or

  • (b) ensures compliance with Canada's international obligations.

• Marginal note:Regulation referred to in subsection (1)

  (2) A regulation referred to in subsection (1) is a regulation that may, under a provision of an Act of Parliament for which the Minister is responsible, be made by the Governor in Council or the Minister.

• Marginal note:Consultation

  (3) Before making an interim order, the Minister must consult with any person or organization that the Minister considers appropriate in the circumstances.

• Marginal note:Period of validity

  (4) An interim order takes effect on the day on which it is made or on any later day specified in it and ceases to have effect on the earliest of

  • (a) the day on which it is repealed,

  • (b) the day before the day on which a regulation that has the same effect as the interim order comes into force, and

  • (c) the day that is three years — or any shorter period specified in the interim order — after the day on which the interim order takes effect.

• Marginal note:Administration and enforcement

  (5) For the purposes of administration and enforcement, an interim order is deemed to be the regulation that may contain the provision contained in the interim order or in which the requirement or condition varied or suspended by the interim order is set out, and any provisions related to administration and enforcement that apply in respect of that regulation, including provisions related to offences and punishment, apply in respect of the interim order.

• Marginal note:Administrative monetary penalty regime

  (6) An interim order may designate one or more of its provisions as subject to an administrative monetary penalty regime under the Act described in subsection (2) if that Act authorizes the designation of provisions of a regulation described in that subsection as being subject to the regime.

• Marginal note:Statutory Instruments Act

  (7) The Statutory Instruments Act does not apply to an interim order.

• Marginal note:Accessibility

  (8) The Minister must ensure that an interim order is accessible to the public unless the Minister is of the opinion that it would be inappropriate due to exceptional circumstances, such as if making the interim order accessible compromises public safety.

• Marginal note:Contravention of unpublished order

  (9) A person is not liable to be found guilty of an offence or subjected to an administrative sanction for a contravention of an interim order that, at the time of the alleged contravention, had not been published in the Canada Gazette unless it is proved that, at that time, the person had been notified of the interim order.

DIVISION 30 R.S., c. J-1Judges Act

500 Paragraph 12(b) of the Judges Act is replaced by the following:

• (b) the 16 Justices of Appeal, $338,800 each;

• 501 (1) Paragraph 24(3)(b) of the Act is replaced by the following:

  • (b) 69, in the case of judges appointed to superior courts in the provinces other than appeal courts.

• (2) The portion of subsection 24(4) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Unified family courts

    (4) For the purposes of assisting the establishment of unified family courts in the provinces, a further number of salaries not greater than 66 at any one time may be paid in the case of judges appointed to courts described in paragraph (3)(b)

DIVISION 312014, c. 20, s. 376Administrative Tribunals Support Service of Canada Act

• 502 (1) The definition administrative tribunal in section 2 of the Administrative Tribunals Support Service of Canada Act is replaced by the following:

  administrative tribunal

  administrative tribunal means a body referred to in Schedule 1 or 2. (tribunal administratif)

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

  territorial body

  territorial body means a body established under an Act of the legislature of a territory. (organisme territorial)

503 The Act is amended by adding the following after section 15:

Territorial Bodies

Marginal note:Amendment

• 15.1 (1) Subject to subsection (2), the Minister may, by order, amend Schedule 2 to add, amend or delete the name of a territorial body.

• Marginal note:Funding arrangement

  (2) The Minister may add the name of a territorial body to Schedule 2 only if the Minister is of the opinion that there is a satisfactory funding arrangement for the provision of support services and of facilities to the territorial body.

• Marginal note:Consultation

  (3) If a territorial body is composed of members of a body established by an Act of Parliament, the Minister must consult the minister responsible for the body established by that Act before adding the name of the territorial body to Schedule 2.

• Marginal note:Statutory Instruments Act

  (4) An order made under subsection (1) is not a statutory instrument as defined in subsection 2(1) of the Statutory Instruments Act. However, the order must be published in the Canada Gazette.

504 The Act is amended by adding the following after section 18:

Marginal note:Spending authority

19 The Service may spend revenues that it receives in a fiscal year for the provision of any services and facilities to a territorial body referred to in Schedule 2 to offset expenditures that it incurs in that fiscal year.

505 The schedule to the Act is numbered as Schedule 1.

506 The heading of Schedule 1 to the Act is repealed.

507 The Act is amended by adding, after Schedule 1, the Schedule 2 set out in Schedule 6 to this Act.

DIVISION 32Environmental Protection Tribunal of Canada

1999, c. 33Canadian Environmental Protection Act, 1999

508 Section 216 of the Canadian Environmental Protection Act, 1999 is amended by adding the following in alphabetical order:

Tribunal

Tribunal means the Environmental Protection Tribunal of Canada established by subsection 243(1). (Tribunal)

509 Paragraph 235(6)(g) of the Act is replaced by the following:

• (g) a statement that a request for a review may be made to the Tribunal; and

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

Marginal note:Variation or cancellation of order

• 241 (1) As long as the Tribunal is not seized of a request for the review of an order, the enforcement officer may, after giving reasonable notice,

511 The heading before section 243 and sections 243 to 248 of the Act are replaced by the following:

Environmental Protection Tribunal of Canada

Marginal note:Establishment

• 243 (1) There is established a tribunal, to be known as the Environmental Protection Tribunal of Canada, consisting of members appointed by the Minister on either a full-time or a part-time basis.

• Marginal note:Appointment of Chairperson

  (2) The Minister is to appoint one of the members as Chairperson of the Tribunal.

Marginal note:Head office

244 The Tribunal's head office is to be in the National Capital Region, as defined in section 2 of the National Capital Act.

Marginal note:Chairperson

• 245 (1) The Chairperson has supervision over and direction of the activities of the Tribunal, including

  • (a) the apportionment of work among members and the assignment of members to hear matters brought before the Tribunal and, when the Tribunal sits in panels, the assignment of members to panels; and

  • (b) the management of the Tribunal's internal affairs.

• Marginal note:Chairperson absent or unable to act

  (2) If the Chairperson is absent or unable to act or if the office is vacant, the Minister is to designate another member of the Tribunal to perform the functions of the Chairperson.

Marginal note:Term of members

246 Members of the Tribunal are to be appointed to hold office during good behaviour for a renewable term of not more than three years, but may be removed by the Minister at any time for cause.

Marginal note:Knowledge

247 A person is not eligible to be appointed as a member of the Tribunal unless the person is knowledgeable about the conservation and protection of the Canadian environment, environmental and human health, administrative law as it relates to environmental regulation or traditional aboriginal ecological knowledge.

Marginal note:Other employment

248 Members of the Tribunal must not accept or hold any office or employment inconsistent with their functions under this Act.

• 512 (1) Subsection 249(1) of the Act is replaced by the following:

  Marginal note:Remuneration

  • 249 (1) Members of the Tribunal are to be paid the remuneration that is fixed by the Governor in Council.

• (2) The portion of subsection 249(2) of the English version of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Expenses

    (2) Members of the Tribunal are entitled to be paid

• (3) Section 249 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Accident compensation

    (3) Members of the Tribunal are deemed to be employees for the purposes of the Government Employees Compensation Act and to be employed in the federal public administration for the purposes of any regulations made under section 9 of the Aeronautics Act.

  • Marginal note:Public Service Superannuation Act

    (4) Full-time members of the Tribunal are deemed to be employed in the public service for the purposes of the Public Service Superannuation Act.

513 Sections 250 to 252 of the Act are replaced by the following:

Marginal note:Acting after expiry of term

250 If the term of a member of the Tribunal ends before they have made a decision in respect of a matter, they may, with the authorization of the Chairperson, continue, during a period of not more than 180 days, to act as a member in respect of that matter.

514 Section 253 of the Act is replaced by the following:

Marginal note:Immunity

253 No criminal or civil proceedings lie against a member of the Tribunal for anything done or omitted to be done in good faith in performing any of their functions under this Act.

515 Section 255 of the Act is replaced by the following:

Marginal note:Liability

255 Members of the Tribunal are servants of His Majesty in right of Canada for the purposes of the law of tort or of extracontractual civil liability.

516 Sections 256 and 257 of the Act are replaced by the following:

Marginal note:Request for review

• 256 (1) Any person to whom an order is directed may, by notice in writing given to the Tribunal within 30 days after the day on which the person receives a copy of the written order or the day on which the oral order is given, make a request to the Tribunal for a review of the order.

• Marginal note:Extension of period for request

  (2) The Chairperson, or any member of the Tribunal that they may designate, may extend the period within which a request for a review may be made if, in their opinion, it is in the public interest to do so.

Marginal note:Review

257 When the Tribunal receives a notice requesting the review of an order, the Chairperson must conduct the review or designate a member, or a panel of three members, of the Tribunal to conduct it.

517 Subsection 258(1) of the English version of the Act is replaced by the following:

Marginal note:No automatic stay on appeal

• 258 (1) Subject to subsection (2), the request for a review does not suspend the operation of an order.

518 Sections 261 and 262 of the English version of the Act are replaced by the following:

Marginal note:Enforcement of summonses and orders

261 Any summons issued or order made under subsection 260(1) may be made a summons or order of the Federal Court or of the superior court of a province and is enforceable in the same manner as a summons or order of that court.

Marginal note:Procedure

262 To make a summons issued or order made under subsection 260(1) a summons or order of the Federal Court or of the superior court of a province, the court's usual practice and procedure in such matters may be followed or a certified copy of the summons or order may be filed with the court's registrar.

519 Section 266 of the Act is replaced by the following:

Marginal note:Decision

266 The Tribunal must, within 15 days after the day on which the review is completed, render a decision, with written reasons, and provide all persons to whom the order was directed and the Minister with a copy of the decision and the reasons.

• 520 (1) The portion of subsection 267(1) of the Act before paragraph (a) is replaced by the following:

  Marginal note:Rules

  • 267 (1) The Chairperson may make rules

• (2) Subsection 267(2) of the English version of the Act is replaced by the following:

  • Marginal note:Rules for other Acts

    (2) The Chairperson may make rules under subsection (1) with respect to the review of orders made under any Act of Parliament that provides for the review of those orders in accordance with sections 257 to 271 of this Act.

521 The Act is amended by replacing "a review officer", "the review officer" and "review officers" with "the Tribunal" and "review officer's" with "Tribunal's", with any necessary modifications, in the following provisions:

• (a) subsection 258(2);

• (b) subsection 260(1);

• (c) the portion of section 263 before paragraph (a);

• (d) section 264;

• (e) the portion of section 265 before paragraph (a);

• (f) paragraphs 267(1)(b) and (c);

• (g) section 269;

• (h) section 271;

• (i) paragraph 280.1(1)(b) and subsections 280.1(2) and (3);

• (j) paragraph 280.2(1)(b) and subsection 280.2(2); and

• (k) paragraph 280.3(1)(b) and subsections 280.3(2) and (3).

2014, c. 20, s. 376Administrative Tribunals Support Service of Canada Act

522 Schedule 1 to the Administrative Tribunals Support Service of Canada Act is amended by adding the following in alphabetical order:

• Environmental Protection Tribunal of Canada

  Tribunal de la protection de l'environnement du Canada

Consequential Amendments

R.S., c. I-20International River Improvements Act

• 523 (1) The definition Chief Review Officer in section 2 of the International River Improvements Act is repealed.

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

  Environmental Protection Tribunal of Canada

  Environmental Protection Tribunal of Canada means the Environmental Protection Tribunal of Canada established by subsection 243(1) of the Canadian Environmental Protection Act, 1999. (Tribunal de la protection de l'environnement du Canada)

524 Subsection 27(2) of the Act is replaced by the following:

• Marginal note:Extension of period for request

  (2) The Chairperson of the Environmental Protection Tribunal of Canada, or any member of the Tribunal that they may designate, may extend the period within which a request for a review may be made if, in their opinion, it is in the public interest to do so.

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

Marginal note:Variation or cancellation of order

• 28 (1) At any time before the Environmental Protection Tribunal of Canada receives a notice requesting a review of an order, the enforcement officer may, after giving reasonable notice,

R.S., c. P-36Public Service Superannuation Act

526 Part I of Schedule I to the Public Service Superannuation Act is amended by adding the following in alphabetical order:

• Full-time members of the Environmental Protection Tribunal of Canada

  Membres à temps plein du Tribunal de la protection de l'environnement du Canada

R.S., c. W-9; 1994, c. 23, s. 2(F)Canada Wildlife Act

• 527 (1) The definition Chief Review Officer in subsection 2(1) of the Canada Wildlife Act is repealed.

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

  Environmental Protection Tribunal of Canada

  Environmental Protection Tribunal of Canada means the Environmental Protection Tribunal of Canada established by subsection 243(1) of the Canadian Environmental Protection Act, 1999; (Tribunal de la protection de l'environnement du Canada)

528 Subsection 11.94(2) of the Act is replaced by the following:

• Marginal note:Extension of period for request

  (2) The Chairperson of the Environmental Protection Tribunal of Canada, or any member of the Tribunal that they may designate, may extend the period within which a request for a review may be made if, in their opinion, it is in the public interest to do so.

529 The portion of subsection 11.95(1) of the Act before paragraph (a) is replaced by the following:

Marginal note:Variation or cancellation of order

• 11.95 (1) At any time before the Environmental Protection Tribunal of Canada receives a notice requesting a review of an order, the wildlife officer may, after giving reasonable notice,

1994, c. 22Migratory Birds Convention Act, 1994

• 530 (1) The definition Chief Review Officer in subsection 2(1) of the Migratory Birds Convention Act, 1994 is repealed.

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

  Environmental Protection Tribunal of Canada

  Environmental Protection Tribunal of Canada means the Environmental Protection Tribunal of Canada established by subsection 243(1) of the Canadian Environmental Protection Act, 1999; (Tribunal de la protection de l'environnement du Canada)

531 Subsection 11.27(2) of the Act is replaced by the following:

• Marginal note:Extension of period for request

  (2) The Chairperson of the Environmental Protection Tribunal of Canada, or any member of the Tribunal that they may designate, may extend the period within which a request for a review may be made if, in their opinion, it is in the public interest to do so.

532 The portion of subsection 11.28(1) of the Act before paragraph (a) is replaced by the following:

Marginal note:Variation or cancellation of order

• 11.28 (1) At any time before the Environmental Protection Tribunal of Canada receives a notice requesting a review of an order, the game officer may, after giving reasonable notice,

2003, c. 20Antarctic Environmental Protection Act

• 533 (1) The definition Chief Review Officer in subsection 2(1) of the Antarctic Environmental Protection Act is repealed.

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

  Environmental Protection Tribunal of Canada

  Environmental Protection Tribunal of Canada means the Environmental Protection Tribunal of Canada established by subsection 243(1) of the Canadian Environmental Protection Act, 1999. (Tribunal de la protection de l'environnement du Canada)

534 Subsection 37.09(2) of the Act is replaced by the following:

• Marginal note:Extension of period for request

  (2) The Chairperson of the Environmental Protection Tribunal of Canada, or any member of the Tribunal that they may designate, may extend the period within which a request for a review may be made if, in their opinion, it is in the public interest to do so.

535 The portion of subsection 37.1(1) of the Act before paragraph (a) is replaced by the following:

Marginal note:Variation or cancellation of order

• 37.1 (1) At any time before the Environmental Protection Tribunal of Canada receives a notice requesting a review of an order, the enforcement officer may, after giving reasonable notice,

2009, c. 14, s. 126Environmental Violations Administrative Monetary Penalties Act

• 536 (1) The definitions Chief Review Officer and review officer in section 2 of the Environmental Violations Administrative Monetary Penalties Act are repealed.

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

  Tribunal

  Tribunal means the Environmental Protection Tribunal of Canada established by subsection 243(1) of the Canadian Environmental Protection Act, 1999. (Tribunal)

537 Sections 15 to 17 of the Act are replaced by the following:

Marginal note:Right to request review

15 A person, ship or vessel that is served with a notice of violation may, within 30 days after the day on which the notice is served, or within any longer period that the Tribunal allows, make a request to the Tribunal for a review of the penalty or the facts of the alleged violation, or both.

Marginal note:Variation or cancellation of notice of violation

16 At any time before the Tribunal receives a request for a review in respect of a notice of violation, a person designated under paragraph 6(b) may cancel the notice of violation or correct an error in it.

Marginal note:Review

17 When the Tribunal receives a request made under section 15, the Chairperson of the Tribunal must conduct the review or designate a member, or a panel of three members, of the Tribunal to conduct it.

538 Subsection 19(1) of the Act is replaced by the following:

Marginal note:Witnesses

• 19 (1) The Tribunal may summon any person to appear as a witness and may order the witness to

  • (a) give evidence orally or in writing; and

  • (b) produce any documents and things that the Tribunal considers necessary for the purpose of the review.

• 539 (1) Subsection 20(1) of the Act is replaced by the following:

  Marginal note:Decision

  • 20 (1) After giving the person, ship or vessel that requested the review and the Minister reasonable notice orally or in writing of a hearing and allowing a reasonable opportunity in the circumstances for the person, ship or vessel and the Minister to make oral representations, the Tribunal must determine whether the person, ship or vessel committed a violation.

• (2) Subsection 20(3) of the Act is replaced by the following:

  • Marginal note:Correction of penalty

    (3) If the Tribunal determines that the penalty for the violation was not determined in accordance with the regulations, it must correct the amount of the penalty.

540 Section 21 of the Act is replaced by the following:

Marginal note:Service of copy and reasons

21 The Tribunal must render its determination, with reasons, in writing within 30 days after the day on which the review is completed and, without delay, provide the Minister and the person, ship or vessel to which the determination relates with a copy of the determination and reasons.

541 Section 22 of the English version of the Act is replaced by the following:

Marginal note:Responsibility

22 If the Tribunal determines that a person, ship or vessel has committed a violation, the person, ship or vessel is liable for the amount of the penalty as set out in the determination.

542 Section 23 of the Act is replaced by the following:

Marginal note:Determination is final

23 A determination made under section 20 is final and binding and, except for judicial review under the Federal Courts Act, is not subject to appeal or review by any court.

• 543 (1) The portion of section 24 of the Act before paragraph (a) is replaced by the following:

  Marginal note:Rules

  24 The Chairperson of the Tribunal may make rules

• (2) Paragraph 24(b) of the Act is replaced by the following:

  • (b) generally, to govern the work of the Tribunal in respect of reviews under this Act; and

2018, c. 12, s. 186Greenhouse Gas Pollution Pricing Act

• 544 (1) The definition Chief Review Officer in section 214 of the Greenhouse Gas Pollution Pricing Act is repealed.

• (2) Section 214 of the Act is amended by adding the following in alphabetical order:

  Environmental Protection Tribunal of Canada

  Environmental Protection Tribunal of Canada means the Environmental Protection Tribunal of Canada established by subsection 243(1) of the Canadian Environmental Protection Act, 1999. (Tribunal de la protection de l'environnement du Canada)

545 The portion of subsection 220(1) of the Act before paragraph (a) is replaced by the following:

Marginal note:Variation or cancellation of order

• 220 (1) At any time before the Environmental Protection Tribunal of Canada receives a notice requesting a review of an order, the enforcement officer may

546 Subsection 222(2) of the Act is replaced by the following:

• Marginal note:Extension of period for request

  (2) The Chairperson of the Environmental Protection Tribunal of Canada, or any member of the Tribunal that they may designate, may extend the period within which a request for a review may be made if, in their opinion, it is in the public interest to do so.

547 Section 224 of the Act is replaced by the following:

Marginal note:Immunity

224 No action or other proceeding of a civil nature may be brought against a member of the Environmental Protection Tribunal of Canada in respect of anything that is done or omitted to be done in good faith in the exercise of their powers or the performance of their duties and functions under section 223.

Terminology Changes

Marginal note:Replacement of "Chief Review Officer"

548 In the following provisions, "Chief Review Officer" is replaced by "Environmental Protection Tribunal of Canada":

• (a) in the International River Improvements Act,

  • (i) paragraph 21(3)(g), and

  • (ii) subsection 27(1);

• (b) in the Canada Wildlife Act,

  • (i) paragraph 11.7(3)(g), and

  • (ii) subsection 11.94(1);

• (c) in the Migratory Birds Convention Act, 1994,

  • (i) paragraph 11.21(4)(g), and

  • (ii) subsection 11.27(1);

• (d) in the Antarctic Environmental Protection Act,

  • (i) paragraph 37.03(4)(g), and

  • (ii) subsection 37.09(1); and

• (e) in the Greenhouse Gas Pollution Pricing Act,

  • (i) paragraph 215(2)(g), and

  • (ii) subsection 222(1).

Transitional Provisions

Marginal note:Definitions

549 The following definitions apply in this section and sections 550 to 552.

Chief Administrator

Chief Administrator has the same meaning as in section 2 of the Administrative Tribunals Support Service of Canada Act. (administrateur en chef)

Chief Review Officer

Chief Review Officer means the review officer appointed as Chief Review Officer under subsection 244(1) of the Canadian Environmental Protection Act, 1999, as it read immediately before the day on which this Division comes into force. (réviseur-chef)

review officer

review officer means a person appointed as a review officer under the Canadian Environmental Protection Act, 1999, as it read immediately before the day on which this Division comes into force. (réviseur)

Tribunal

Tribunal means the Environmental Protection Tribunal of Canada established by subsection 243(1) of the Canadian Environmental Protection Act, 1999 as it reads on the day on which this Division comes into force. (Tribunal)

Marginal note:Contracts

• 550 (1) A contract entered into before the day on which this Division comes into force by the Chief Review Officer or a review officer respecting the provision of services or material, in relation to the exercise of their powers and the performance of their duties and functions under the Canadian Environmental Protection Act, 1999, is deemed to have been entered into by the Chief Administrator.

• Marginal note:References

  (2) Unless the context otherwise requires, in a contract referred to in subsection (1), every reference to the Chief Review Officer or to a review officer is to be read as a reference to the Chief Administrator.

Marginal note:Chief Review Officer

• 551 (1) The person who holds the office of Chief Review Officer immediately before the day on which this Division comes into force continues in office as the Chairperson of the Tribunal for the remainder of the term for which they were appointed.

• Marginal note:Review officers

  (2) A person who holds the office of review officer immediately before the day on which this Division comes into force continues in office as a member of the Tribunal for the remainder of the term for which they were appointed.

Marginal note:Pending requests for review or other matters

• 552 (1) Any request for review or other matter pending before the Chief Review Officer, a review officer or a panel of review officers immediately before the day on which this Division comes into force is to be continued before the Tribunal.

• Marginal note:Orders or decisions

  (2) An order or decision made by the Chief Review Officer, a review officer or a panel of review officers is deemed to have been made by the Tribunal and is enforceable as such.

DIVISION 33Freshwater Fish Marketing Corporation

Divestiture and Dissolution

Marginal note:Definitions

553 The following definitions apply in this Division.

Corporation

Corporation means the Freshwater Fish Marketing Corporation established by subsection 3(1) of the Freshwater Fish Marketing Act. (Office)

Minister

Minister means the member of the King's Privy Council for Canada designated as Minister for the purposes of the Freshwater Fish Marketing Act. (ministre)

  

Marginal note:Purpose

554 The purpose of this Division is to authorize the taking of various measures for the divestiture and dissolution of all or any part of the Corporation.

Marginal note:Powers of Minister

• 555 (1) The Minister may, with the approval of the Governor in Council and on any terms that the Governor in Council considers appropriate, take any of the following measures:

  • (a) sell or otherwise dispose of some or all of the property of the Corporation;

  • (b) procure an addition to, or other material change in, the objects or purposes for which the Corporation is incorporated or the restrictions on the businesses or activities that it may carry on;

  • (c) procure the amalgamation of the Corporation;

  • (d) procure the dissolution of the Corporation;

  • (e) procure the incorporation of a corporation whose securities, on incorporation, would be held by, on behalf of or in trust for His Majesty in right of Canada and sell or otherwise dispose of some or all of those securities;

  • (f) procure the formation of any other entity whose securities, on formation, would be held by, on behalf of or in trust for His Majesty in right of Canada and sell or otherwise dispose of some or all of those securities; or

  • (g) acquire securities of a corporation or of any other entity that, on acquisition, would be held by, on behalf of or in trust for His Majesty in right of Canada and sell or otherwise dispose of some or all of those securities.

• Marginal note:Additional powers

  (2) The Minister may do anything or cause anything to be done that is necessary for, or incidental to, a measure taken under subsection (1).

• Marginal note:For greater certainty

  (3) For greater certainty, if the Minister considers it appropriate to carry out the purposes of this Division, the Minister may appoint a liquidator, who is to hold office during pleasure, to administer the divestiture and dissolution of the Corporation.

• Marginal note:Powers, duties and functions

  (4) On appointment of a liquidator, the Chairperson of the Board of Directors of the Corporation, the President of the Corporation and the other directors of the Corporation cease to hold their respective offices and the liquidator may exercise all of the powers and perform all the duties and functions of the Corporation.

• Marginal note:Part X of Financial Administration Act

  (5) The Governor in Council may, by order, declare that any provision of Part X of the Financial Administration Act does not apply to a corporation referred to in paragraph (1)(e) or to another entity referred to in paragraph (1)(f) that is a corporation.

Marginal note:Powers

• 556 (1) The Corporation, any corporation referred to in paragraph 555(1)(e) or any other entity referred to in paragraph 555(1)(f) — or any entity that is wholly owned, or wholly held or controlled, directly or indirectly, by the Corporation, the corporation or the other entity — may, with the approval of the Governor in Council and on any terms that the Governor in Council considers appropriate, take any of the following measures:

  • (a) sell or otherwise dispose of some or all of its property;

  • (b) sell or otherwise dispose of some or all of its liabilities;

  • (c) issue securities and sell or otherwise dispose of some or all of those securities;

  • (d) reorganize its capital structure;

  • (e) acquire the property of a corporation or any other entity;

  • (f) procure an addition to, or other material change in, the objects or purposes for which it is incorporated or formed or the restrictions on the businesses or activities that it may carry on;

  • (g) procure the incorporation of a corporation whose securities, on incorporation, would be held by, on behalf of or in trust for it;

  • (h) procure the formation of any other entity whose securities, on formation, would be held by, on behalf of or in trust for it;

  • (i) acquire securities of a corporation or any other entity that, on acquisition, would be held by, on behalf of or in trust for it;

  • (j) sell or otherwise dispose of some or all of the securities of a corporation or any other entity that are held by, on behalf of or in trust for it;

  • (k) procure its amalgamation;

  • (l) procure its dissolution; or

  • (m) do anything that is necessary for, or incidental to, a measure taken under any of paragraphs (a) to (l).

• Marginal note:Order in council

  (2) The Governor in Council may, on the recommendation of the Minister and on any terms that the Governor in Council considers appropriate, by order, direct the Corporation, any corporation referred to in paragraph 555(1)(e) or any other entity referred to in paragraph 555(1)(f) — or any entity that is wholly owned, or wholly held or controlled, directly or indirectly, by the Corporation, the corporation or the other entity — to take, or cause any wholly-owned or wholly held or controlled entity of the Corporation, the corporation or the other entity to take a measure referred to in subsection (1).

• Marginal note:Compliance with order

  (3) The directors of the Corporation or the corporation referred to in paragraph 555(1)(e) or any persons acting in a similar capacity with respect to the other entity referred to in paragraph 555(1)(f) must comply with an order made under subsection (2).

• Marginal note:Best interests

  (4) Compliance with an order made under subsection (2) is deemed to be in the best interests of the Corporation, the corporation or the other entity.

• Marginal note:Notification of implementation

  (5) As soon as feasible after the Corporation, corporation or entity implements an order and completes any actions that are required to be taken in connection with that implementation, it must notify the Minister that it has done so.

• Marginal note:Non-application of Statutory Instruments Act

  (6) The Statutory Instruments Act does not apply to an order made under subsection (2).

Marginal note:Tabling in Parliament

• 557 (1) The Minister is to cause a copy of an order made under subsection 556(2) to be laid before each House of Parliament on any of the first 15 days on which that House is sitting after the day on which the order is made.

• Marginal note:Exception — detrimental information

  (2) However, if the Minister is of the opinion that publishing information contained in the order would be detrimental to the commercial interests of Canada, of the Corporation or of any corporation or entity referred to in the order, the Minister is to cause a copy of the order to be laid before each House of Parliament on any of the first 15 days on which that House is sitting after the day on which the Minister is notified that the order has been implemented.

• Marginal note:Consultation

  (3) Before the Minister forms an opinion as to whether publishing information contained in the order would be detrimental, the Minister must consult the Board of Directors of the Corporation or of the corporation or the person or group of persons acting in a similar capacity with respect to the other entity.

Marginal note:Transfer — property, rights or interests

558 Subject to sections 559 and 560, on the day on which the Corporation is dissolved, the Governor in Council may, on the recommendation of the Minister and on any terms that the Governor in Council considers appropriate, transfer, or direct to be transferred, the control, management and administration of any property, rights or interests held by the Corporation to any Minister, department or agency of the Government of Canada.

Marginal note:Distribution of property

• 559 (1) The property of the Corporation is to be applied in satisfaction of its debts and liabilities, and of the charges, costs and expenses incurred in respect of its divestiture and dissolution.

• Marginal note:Expenses — divestiture and dissolution

  (2) All charges, costs and expenses incurred in respect of the divestiture and dissolution of the Corporation are payable out of the property of the Corporation in priority to all other claims.

Marginal note:Surplus

• 560 (1) Any surplus that remains after the satisfaction of the debts and liabilities of the Corporation and the charges, costs and expenses incurred in respect of its divestiture and dissolution belongs to His Majesty in right of Canada.

• Marginal note:Unsatisfied debts and liabilities

  (2) Any debts and liabilities of the Corporation that remain unsatisfied on the day on which the Corporation is dissolved become the debts and liabilities of His Majesty in right of Canada.

Marginal note:Dissolution

561 The Corporation is dissolved.

Transitional Provisions

Marginal note:Reference to Corporation

562 On or after the day on which the Corporation is dissolved, every reference to the Corporation in any contract, instrument, act or other document executed or signed by the Corporation in its own name is to be read, unless the context otherwise requires, as a reference to His Majesty in right of Canada.

Marginal note:Commencement of legal proceedings

• 563 (1) Any action, suit or other legal proceeding in respect of an obligation or liability incurred by the Corporation in respect of its divestiture or dissolution may be brought against His Majesty in right of Canada in any court that would have had jurisdiction if the action, suit or other legal proceeding had been brought against the Corporation.

• Marginal note:Continuation of legal proceedings

  (2) Any action, suit or other legal proceeding to which the Corporation is party that is pending in any court on the day on which the Corporation is dissolved may be continued by or against His Majesty in right of Canada in like manner and to the same extent as it could have been continued by or against the Corporation.

Marginal note:No compensation

564 Despite the provisions of any contract, agreement or order in council, no person who is appointed to hold office as a member of the Board of Directors of the Corporation has any right to any compensation, damages, indemnity or other form of relief from His Majesty in right of Canada or from any employee or agent of His Majesty for ceasing to hold that office or for the abolition of that office, by the operation of this Division.

Consequential Amendments

R.S., c. F-8Federal-Provincial Fiscal Arrangements Act

565 Schedule I to the Federal-Provincial Fiscal Arrangements Act is amended by deleting the following:

• Freshwater Fish Marketing Corporation

  Office de commercialisation du poisson d'eau douce

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

566 Part I of Schedule III to the Financial Administration Act is amended by deleting the following:

• Freshwater Fish Marketing Corporation

  Office de commercialisation du poisson d'eau douce

R.S., c. M-13Payments in Lieu of Taxes Act

567 Schedule III to the Payments in Lieu of Taxes Act is amended by deleting the following:

• Freshwater Fish Marketing Corporation

  Office de commercialisation du poisson d'eau douce

R.S., c. P-36Public Service Superannuation Act

568 Part III of Schedule I to the Public Service Superannuation Act is amended by adding the following in alphabetical order:

• Freshwater Fish Marketing Corporation

  Office de commercialisation du poisson d'eau douce

Repeal

Marginal note:Repeal

569 The Freshwater Fish Marketing Act, chapter F-13 of the Revised Statutes of Canada, 1985, is repealed.

Coming into Force

Marginal note:Order in council

570 Sections 561 and 565 to 569 come into force on a day or days to be fixed by order of the Governor in Council.

DIVISION 341974-75-76, c. 83Government Annuities Improvement Act

571 Section 16 of the Government Annuities Improvement Act and the heading before it are repealed.

DIVISION 351984, c. 18; 2018, c. 4, s. 4Naskapi and the Cree-Naskapi Commission Act

572 Sections 195 and 196 of the Naskapi and the Cree-Naskapi Commission Act are repealed.

DIVISION 361994, c. 28Canada Student Financial Assistance Act

Amendments to the Act

573 The Canada Student Financial Assistance Act is amended by adding the following after section 6.3:

Marginal note:Exception — certain designated educational institutions

6.31 The Minister shall deny the provision of financial assistance to all those who are qualifying students in relation to a designated educational institution outside Canada that is private and for-profit and offers courses at a post-secondary school level.

574 The Act is amended by adding the following after section 6.4:

Marginal note:Alignment with provincial decision

6.5 If a province has suspended or denied the provision of financial assistance in relation to a class of qualifying students, of designated educational institutions or of programs of studies at designated educational institutions, the Minister may do the same in relation to that class if the Minister is satisfied that there are compelling reasons to believe that the provision of the financial assistance would

• (a) facilitate the commission by the qualifying students or designated educational institutions of an offence under this Act or any other Act of Parliament;

• (b) constitute a risk to the integrity of the provision of financial assistance under this Act; or

• (c) expose the qualifying students or His Majesty in right of Canada to financial risk.

Transitional Provision

Marginal note:Delayed application

• 575 (1) Section 6.31 of the Canada Student Financial Assistance Act applies as of August 1, 2029 in relation to a qualifying student who

  • (a) is registered in a program of studies during the loan year beginning on August 1, 2025;

  • (b) in respect of that program of studies, receives financial assistance under that Act during that loan year or received financial assistance under that Act during a previous loan year; and

  • (c) continues that program of studies at the same designated educational institution.

• Marginal note:Words and expressions

  (2) Unless the context otherwise requires, words and expressions used in subsection (1) have the same meaning as in the Canada Student Financial Assistance Act.

DIVISION 37Proceeds of Crime (Money Laundering) and Terrorist Financing (Various Measures)

2000, c. 17; 2001, c. 41, s. 48Proceeds of Crime (Money Laundering) and Terrorist Financing Act

576 The heading before section 2 of the French version of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act is replaced by the following:

Définitions et interprétation

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

• Marginal note:Definitions — regulations

  (2) The Governor in Council may make regulations defining the following words and expressions:

578 The Act is amended by adding the following after section 2:

Marginal note:Regulations — recommendation of Minister

2.1 Regulations under this Act are to be made on the recommendation of the Minister of Finance.

579 The Act is amended by adding the following after section 9.1:

Marginal note:Prohibition — government institution or authorized agency

• 9.11 (1) Every government institution or agency that accepts a report required by regulations made under paragraph 73(1)(c) or a similar report voluntarily submitted to it is prohibited from disclosing that report or its contents to any person or entity, except in prescribed circumstances.

• Marginal note:Exceptions

  (2) However, a government institution or agency may disclose the report or its contents to any of the following:

  • (a) the Centre;

  • (b) the appropriate police force;

  • (c) the Canada Revenue Agency;

  • (d) the Agence du revenu du Québec;

  • (e) an agency or body that administers legislation governing incorporation;

  • (f) any prescribed entity.

• Marginal note:For greater certainty

  (3) For greater certainty, subsection (1) does not apply to an entity referred to in any of paragraphs (2)(a) to (f) in respect of a report or its contents if the report or its contents were disclosed to the entity under subsection (2).

• 580 (1) The portion of subsection 11.49(1) of the Act before paragraph (a) is replaced by the following:

  Marginal note:Regulations — limitation and prohibition

  • 11.49 (1) The Governor in Council may make regulations

• (2) Subsection 11.49(2) of the Act is replaced by the following:

  • Marginal note:Consultation with Minister of Foreign Affairs

    (2) The Minister shall consult with the Minister of Foreign Affairs before recommending to the Governor in Council that a regulation be made under subsection (1).

581 Paragraph 36(3.01)(b) of the Act is replaced by the following:

• (b) relate to a registered charity as defined in subsection 248(1) of the Income Tax Act, to an entity that has applied for registration as such a registered charity or to a person or any other entity that solicits financial donations from the public.

582 The portion of subsection 39.38(1) of the Act before paragraph (a) is replaced by the following:

Marginal note:Regulations

• 39.38 (1) The Governor in Council may make regulations in respect of electronic communications and electronic means, including electronic systems, or any other technology to be used in the administration or enforcement of this Part, including regulations respecting

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

Marginal note:Regulations

• 73 (1) The Governor in Council may make any regulations that the Governor in Council considers necessary for carrying out the purposes and provisions of this Act, including regulations

SOR/2002-184Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations

584 Paragraph 4.1(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations is replaced by the following:

• (c) if the person or entity is a real estate broker or sales representative, a real estate developer, a mortgage administrator, a mortgage broker, a mortgage lender or a title insurer, the first time that the person or entity is required to verify the identity of the client under these Regulations,

585 Paragraph 138(5)(b) of the Regulations is replaced by the following:

• (b) an organization, other than one referred to in paragraph (a), that solicits financial donations from the public.

R.S., c. A-1Consequential Amendment to the Access to Information Act

586 Schedule II to the Access to Information Act is amended by replacing the reference to "paragraphs 55(1)(a), (d) and (e)" opposite "Proceeds of Crime (Money Laundering) and Terrorist Financing Act" with "subsection 9.11(1) and paragraphs 55(1)(a), (d) and (e)".

Coming into Force

Marginal note:October 1, 2025

587 Section 584 is deemed to have come into force on October 1, 2025 immediately after the coming into force of section 8 of the Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, made on December 16, 2024 and registered as SOR/2024-267.

DIVISION 382017, c. 20, s. 103Borrowing Authority Act

588 The portion of section 4 of the Borrowing Authority Act before paragraph (a) is replaced by the following:

Marginal note:Maximum amount that may be borrowed

4 Despite section 3 and any other Act of Parliament, but subject to section 6, the total of the following amounts must not at any time exceed $2,541,000,000,000:

DIVISION 39Measures Related to the Dissolution of Certain Corporations and Cooperatives (Listed Entities)

R.S., c. C-44; 1994, c. 24, s. 1(F)Canada Business Corporations Act

• 589 (1) Paragraph 212(1)(a) of the Canada Business Corporations Act is replaced by the following:

  • (a) dissolve a corporation by issuing a certificate of dissolution under this section on the grounds that

    • (i) the corporation has not commenced business within three years after the date shown in its certificate of incorporation,

    • (ii) the corporation has not carried on its business for three consecutive years,

    • (iii) the corporation is in default for a period of one year in sending to the Director any fee or any notice, document or other information required by this Act,

    • (iv) the corporation does not have any directors or is in the situation described in subsection 109(4), or

    • (v) the Director is notified by the Minister of Public Safety and Emergency Preparedness that the corporation is a listed entity as defined in subsection 83.01(1) of the Criminal Code; or

• (2) Subsection 212(3) of the Act is replaced by the following:

  • Marginal note:Exception — listed entities

    (2.1) Subsection (2) does not apply if the ground, or one of the grounds, for issuing a certificate of dissolution is the ground set out in subparagraph (1)(a)(v).

  • Marginal note:Certificate of dissolution

    (3) Unless cause to the contrary has been shown or an order has been made by a court under section 246, the Director may issue a certificate of dissolution in the form that the Director fixes. However, if subsection (2) applies, the certificate is not to be issued until after the end of the period referred to in that subsection.

1998, c. 1Canada Cooperatives Act

• 590 (1) The portion of subsection 311(1) of the Canada Cooperatives Act before paragraph (a) is replaced by the following:

  Marginal note:Dissolution by Director

  • 311 (1) Subject to subsections (2) and (3), the Director may dissolve a cooperative by issuing a certificate of dissolution under this section on the grounds that

• (2) Paragraphs 311(1)(a) to (d) of the English version of the Act are replaced by the following:

  • (a) the cooperative has not commenced business within three years after the date shown in its certificate of incorporation;

  • (b) the cooperative has not carried on its business for three consecutive years;

  • (c) the cooperative is in default for a period of one year in sending the Director any fee, notice or document required by this Act;

  • (d) the cooperative does not have any directors or is in the situation described in subsection 85(6); or

• (3) Subsection 311(1) of the Act is amended by adding the following after paragraph (d):

  • (e) the Director is notified by the Minister of Public Safety and Emergency Preparedness that the cooperative is a listed entity as defined in subsection 83.01(1) of the Criminal Code.

• (4) Subsection 311(3) of the Act is replaced by the following:

  • Marginal note:Exception — listed entities

    (2.1) Subsection (2) does not apply if the ground, or one of the grounds, for issuing a certificate of dissolution is the ground set out in paragraph (1)(e).

  • Marginal note:Certificate of dissolution

    (3) Unless cause to the contrary has been shown or an order has been made by a court under section 315, the Director may issue a certificate of dissolution. However, if subsection (2) applies, the certificate is not to be issued until after the end of the 120 days referred to in that subsection.

2009, c. 23Canada Not-for-profit Corporations Act

• 591 (1) Paragraph 222(1)(a) of the Canada Not-for-profit Corporations Act is replaced by the following:

  • (a) dissolve a corporation by issuing a certificate of dissolution under this section on the grounds that

    • (i) the corporation has not commenced its activities within the prescribed period after the date shown in its certificate of incorporation,

    • (ii) the corporation has not carried on its activities for the prescribed period,

    • (iii) the corporation is in default for a prescribed period in sending to the Director any fee, notice or other document required by this Act,

    • (iv) the corporation does not have any directors or is in the situation described in subsection 130(4), or

    • (v) the Director is notified by the Minister of Public Safety and Emergency Preparedness that the corporation is a listed entity as defined in subsection 83.01(1) of the Criminal Code; or

• (2) Subsection 222(3) of the Act is replaced by the following:

  • Marginal note:Exception — listed entities

    (2.1) Subsection (2) does not apply if the ground, or one of the grounds, for issuing a certificate of dissolution is the ground set out in subparagraph (1)(a)(v).

  • Marginal note:Certificate of dissolution

    (3) Unless cause to the contrary has been shown or an order has been made by a court under section 258, the Director may issue a certificate of dissolution. However, if subsection (2) applies, the certificate is not to be issued until after the end of the prescribed period.

DIVISION 402025, c. 2, s. 4Building Canada Act

592 Paragraph 5.1(2)(b) of the Building Canada Act is replaced by the following:

• (b) the extent to which the project is expected to meet the outcomes set out in paragraphs 5(6)(a) to (e);

DIVISION 412019, c. 28, s. 10Canadian Energy Regulator Act

593 The Canadian Energy Regulator Act is amended by adding the following after section 346:

Marginal note:Maximum validity — liquefied natural gas

• 346.1 (1) The period of validity of a licence for the exportation of liquefied natural gas begins on a date to be fixed in the licence and must not exceed 50 years.

• Marginal note:Definitions

  (2) The following definitions apply in this section and section 353.

  liquefied natural gas

  liquefied natural gas means natural gas that is in a liquid state. (gaz naturel liquéfié)

  natural gas

  natural gas means a mixture of gas that is composed of at least 85% methane and that may also contain other hydrocarbons that, at a temperature of 15°C and an absolute pressure of 101.325 kPa, are in a gaseous state, as well as minor amounts of non-hydrocarbon gas and impurities. (gaz naturel)

• 594 (1) Paragraph 353(1)(a) of the Act is replaced by the following:

  • (a) respecting the quantities that may be exported under licences, the period of validity of licences — other than licences for the exportation of liquefied natural gas — and any other conditions to which licences may be subject;

• (2) Paragraph 353(2)(a) of the Act is replaced by the following:

  • (a) 40 years, in the case of a licence for the exportation of natural gas; and

DIVISION 421999, c. 33Canadian Environmental Protection Act, 1999

595 Subsection 9(7) of the Canadian Environmental Protection Act, 1999 is replaced by the following:

• Marginal note:Termination

  (7) An agreement made under subsection (5) may be terminated by either party giving the other at least three months notice.

• 596 (1) Paragraph 10(3)(a) of the Act is replaced by the following:

  • (a) provisions that are equivalent in effect to a regulation made under a provision referred to in subsection (1) or (2), and

• (2) Subsection 10(8) of the Act is replaced by the following:

  • Marginal note:Termination

    (8) An agreement made under subsection (3) may be terminated by either party giving the other at least three months notice.

DIVISION 43R.S., c. C-34; R.S., c. 19 (2nd Supp.), s. 19Competition Act

• 597 (1) Paragraph 74.01(1)(b.2) of the Competition Act is replaced by the following:

  • (b.2) makes a representation to the public with respect to the benefits of a business or business activity for protecting or restoring the environment or mitigating the environmental and ecological causes or effects of climate change that is not based on adequate and proper substantiation, the proof of which lies on the person making the representation; or

• (2) Section 74.01 of the Act is amended by adding the following after subsection (1):

  • Marginal note:Non-application of paragraph (1)(b.2)

    (1.01) Paragraph (1)(b.2) does not apply for the purposes of an application made under this Part by a person granted leave under section 103.1.

598 Section 103.1 of the Act is amended by adding the following after subsection (6.1):

• Marginal note:Refusing leave — section 74.1

  (6.2) However, the Tribunal is not to consider an application for leave in respect of an application under section 74.1 that is made on the basis of paragraph 74.01(1)(b.2).

DIVISION 44National School Food Program Act

Marginal note:Enactment of Act

599 The National School Food Program Act is enacted as follows:

An Act respecting the National School Food Program

Preamble

Whereas the Government of Canada recognizes the beneficial effects of school food programs on the well-being of children, youth and families, on the economic participation and prosperity of children, youth and families and on Canada's economy and social infrastructure;

Whereas the Government of Canada, through the National School Food Program, collaborates with and provides funding to the provinces, the territories and Indigenous governing bodies to enhance and expand school food programs, which aim to provide nutritious food to children and youth across Canada;

Whereas the National School Food Policy sets out the Government of Canada's long-term vision for the Program, which is that all children and youth in Canada have access to nutritious food at school that supports their development and enables them to reach their full potential, and the principles and objectives that guide the Government of Canada in achieving that vision;

Whereas the Government of Canada recognizes the role of the provinces, the territories and Indigenous governing bodies in delivering school food programs and is committed to cooperating, collaborating and maintaining partnerships with them in order to support them in delivering the programs;

Whereas the Government of Canada is committed to supporting the ongoing implementation and maintenance of the Program, which aims to contribute to meeting the Sustainable Development Goals of the United Nations and Canada's international human rights obligations, including those under the Convention on the Rights of the Child;

Whereas the Government of Canada recognizes the Truth and Reconciliation Commission of Canada's Calls to Action and strongly supports and continues to engage with Indigenous peoples;

And whereas the Government of Canada recognizes the importance of engaging with Canadians to assist it in its efforts to support the delivery of school food programs that prioritize the provision of food that is sourced locally, when possible, and reflect local and regional contexts;

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

Alternative Title

Marginal note:Alternative title

1 This Act may be cited as the National School Food Program Act.

Definitions

Marginal note:Definitions

2 The following definitions apply in this Act.

Indigenous governing body

Indigenous governing body means a council, government or other entity that is authorized to act on behalf of an Indigenous group, Indigenous community or Indigenous people that holds rights recognized and affirmed by section 35 of the Constitution Act, 1982. (corps dirigeant autochtone)

Indigenous peoples

Indigenous peoples has the meaning assigned by the definition aboriginal peoples of Canada in subsection 35(2) of the Constitution Act, 1982. (peuples autochtones)

Minister

Minister means the member or members of the King's Privy Council for Canada designated under section 3. (ministre)

Program

Program means the National School Food Program. (Programme)

Designation of Minister

Marginal note:Order designating Minister

3 The Governor in Council may, by order, designate one or more members of the King's Privy Council for Canada to be the Minister or Ministers for the purposes of this Act.

Purpose and Declaration

Marginal note:Purpose

4 The purpose of this Act is to set out

• (a) the Government of Canada's long-term vision for the Program;

• (b) the Government of Canada's commitment to maintaining long-term funding for the ongoing implementation and maintenance of the Program; and

• (c) the principles that guide the Government of Canada's ongoing investments in the Program.

Marginal note:Declaration

5 It is declared that

• (a) the Government of Canada's vision is that all children and youth in Canada have access to nutritious food at school, in an inclusive and non-stigmatizing setting that fosters healthy practices, through school food programs that strengthen connections with local food systems, the environment and culture;

• (b) the Government of Canada's goal is to maintain the Program in a way that respects the following principles:

  • (i) accessibility,

  • (ii) health promotion,

  • (iii) inclusivity,

  • (iv) flexibility,

  • (v) sustainability, and

  • (vi) accountability;

• (c) school food programs contribute to improved health outcomes for children and youth, reduced costs for Canadians and a strong Canadian economy;

• (d) it is important for the Government of Canada to cooperate, collaborate and work in partnership with the provinces, the territories and Indigenous governing bodies in the delivery of school food programs; and

• (e) First Nations, Inuit and Métis children, youth and families are best supported by school food programs that are culturally appropriate and designed and delivered by their communities.

Funding

Marginal note:Guiding principles

• 6 (1) Federal investments respecting the ongoing implementation and maintenance of the Program — as well as the efforts to enter into related agreements with provinces, territories and Indigenous governing bodies — must be guided by the principles set out in paragraph 5(b).

• Marginal note:Commitments — Official Languages Act

  (2) Federal investments that are subject to an agreement entered into with a province or territory respecting the Program must be guided by the principles set out in paragraph 5(b) and by the commitments set out in the Official Languages Act.

Marginal note:Funding commitments

• 7 (1) The Government of Canada commits to maintaining long-term funding for the Program.

• Marginal note:Funding agreements

  (2) The funding must be provided through agreements with the provinces, the territories or Indigenous governing bodies.

Annual Report

Marginal note:Report

• 8 (1) At the end of the first complete fiscal year after the day on which this section comes into force and at the end of each subsequent fiscal year, the Minister must prepare a report that contains

  • (a) a summary of the information in the Minister's possession and within the Minister's authority to disclose relating to the federal investments made in respect of the Program during the previous fiscal year; and

  • (b) a summary of the progress that has been made in respect of the Program, including with respect to the principles set out in paragraph 5(b).

• Marginal note:Tabling

  (2) The Minister must cause the report to be tabled in each House of Parliament on any of the first 15 days on which that House is sitting after the day on which the report is completed.

DIVISION 45Stablecoin Act

Enactment of Act

Marginal note:Enactment

600 The Stablecoin Act is enacted as follows:

An Act respecting stablecoins

Short Title

Marginal note:Short title

1 This Act may be cited as the Stablecoin Act.

Interpretation

Marginal note:Definitions

2 The following definitions apply in this Act.

Bank

Bank means the Bank of Canada. (Banque)

Centre

Centre means the Financial Transactions and Reports Analysis Centre of Canada. (Centre)

certified accountant

certified accountant means an individual who is a member in good standing of a professional body of accountants that is constituted by or under an Act of Parliament or a provincial or foreign law. (comptable certifié)

digital asset

digital asset means a digital representation of value that is recorded on a distributed ledger or a similar technology. (actif numérique)

distributed ledger

distributed ledger means a digital database that contains records of transactions among the users of a network and that uses cryptography to maintain the confidentiality, integrity, authenticity and non-repudiation of the data that is recorded in it. (registre distribué)

fiat currency

fiat currency means a currency that is issued by a country and that is designated as legal tender in that country. (monnaie fiduciaire)

financial institution

financial institution means a financial institution, as defined in section 2 of the Bank Act, the corporation described in paragraph 983(4.2)(f) of that Act and any other person provided for in the regulations. (institution financière)

government authority

government authority includes the Royal Canadian Mounted Police, the Communications Security Establishment and the Canadian Security Intelligence Service. (autorité administrative)

Governor

Governor has the same meaning as in section 2 of the Bank of Canada Act. (gouverneur)

incident

incident means an event or series of related events that is unplanned by an issuer and that results in or could reasonably be expected to result in the reduction, deterioration or breakdown of any activity that is performed by the issuer or a third party and that is related to a stablecoin. (incident)

issue

issue, in respect of a stablecoin, means to create the stablecoin and to make it available for purchase, directly or indirectly, by a person in Canada. (émettre)

issuer

issuer means a person that issues a stablecoin. (émetteur)

lawyer

lawyer means

• (a) a lawyer who is a member in good standing of a law society of a province or a notary who is a member in good standing of the Chambre des notaires du Québec; and

• (b) a lawyer who is a member in good standing of a professional body of lawyers that is constituted under a foreign law. (avocat)

Minister

Minister means the Minister of Finance. (ministre)

outstanding stablecoin

outstanding stablecoin means a stablecoin that an issuer has issued and that has been purchased and neither redeemed nor cancelled. (cryptomonnaie stable en circulation)

person

person means an individual, a corporation, a trust, a joint venture, a partnership, a fund, an unincorporated association or organization and any other legal entity. (personne)

personal information

personal information means information about an identifiable individual. (renseignement personnel)

qualified custodian

qualified custodian means a financial institution, and any other person provided for in the regulations, that meets any requirements provided for in the regulations. (dépositaire autorisé)

reference currency

reference currency means the fiat currency relative to which a stablecoin is intended or designed to maintain a stable value. (monnaie de référence)

stablecoin

stablecoin means a digital asset that is intended or designed to maintain a stable value relative to the value of one fiat currency and that has the characteristics, if any, provided for in the regulations. (cryptomonnaie stable)

third party

third party means a person that, under an arrangement or agreement with an issuer, performs an activity that is related to the issuing or the redemption of a stablecoin issued by the issuer and that is not an employee of the issuer. (tiers)

Marginal note:Securities — Acts of Parliament

3 The issuing of a stablecoin in accordance with this Act does not constitute dealing in securities for the purposes of any of the following provisions:

• (a) paragraphs 468(3)(b), 522.08(2)(b) and 930(3)(b) of the Bank Act;

• (b) paragraphs 495(3)(b) and (5)(b), 554(3)(c) and 971(3)(b) of the Insurance Companies Act; and

• (c) paragraph 453(3)(b) of the Trust and Loan Companies Act.

Marginal note:Not business of accepting deposit liabilities

4 The issuing of a stablecoin in accordance with this Act does not constitute engaging in the business of accepting deposit liabilities for the purposes of any of the following provisions:

• (a) subsections 468(3) and 930(3) and paragraph 948(1)(a) of the Bank Act;

• (b) subsections 495(3) and (5), 554(3) and 971(3) of the Insurance Companies Act; and

• (c) subsection 453(3) of the Trust and Loan Companies Act.

Marginal note:Business of dealing in virtual currencies

5 An issuer is a person that is engaged in the business of dealing in virtual currencies for the purposes of subparagraphs 5(h)(iv) and (h.1)(iv) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

Bank

Marginal note:Objects

6 The Bank's objects under this Act are to

• (a) supervise issuers in order to determine whether they are in compliance with this Act;

• (b) promote the adoption by issuers of policies and procedures that are designed to implement their duties under this Act; and

• (c) monitor and evaluate trends and issues related to stablecoins.

Marginal note:Agreements or arrangements

7 The Bank may, for the purpose of exercising its powers or performing its duties and functions under this Act, enter into an agreement or arrangement with any government authority or regulatory body.

Marginal note:Guidelines — Bank

• 8 (1) Subject to subsection (2), the Bank may issue guidelines respecting the manner in which this Act is to be applied.

• Marginal note:Guidelines — Minister

  (2) The Minister may issue guidelines respecting the manner in which the provisions of this Act that confer powers, duties or functions on the Minister are to be applied.

Marginal note:Delegation of Governor's powers, duties and functions

9 The Governor may delegate to an officer of the Bank any of the Governor's powers, duties or functions under this Act.

Application

Marginal note:Interprovincial or international applications

10 This Act applies only in respect of a stablecoin that has or could reasonably be expected to have interprovincial or international applications.

Marginal note:Closed-loop stablecoin

11 Subject to the regulations, this Act does not apply in respect of a closed-loop stablecoin.

Marginal note:Issuers

12 Subject to the regulations, this Act does not apply to an issuer that is a financial institution.

Marginal note:Central bank

13 This Act does not apply to an issuer that is a central bank.

Marginal note:Governor's order

14 If the Governor is of the opinion that a provincial or foreign law or a provision of a provincial or foreign law applies to or in respect of an applicant or a class of applicants or an issuer or a class of issuers and that the provincial or foreign law or the provision of the provincial or foreign law is substantially similar to this Act or the regulations or a provision of this Act or the regulations, then the Governor may, by order, specify that this Act or the regulations, or any provision of this Act or the regulations, does not apply to or in respect of the applicant, the issuer or the class of applicants or issuers, subject to any conditions that the Governor considers appropriate.

Registry of Issuers

General

Marginal note:Prohibition — issuing

15 A person must not issue a stablecoin unless the person complies with this Act and their name is included in the list of issuers referred to in paragraph 16(a).

Marginal note:Registry

16 The Bank must maintain a public registry that contains

• (a) a list of issuers, including any information provided for in the regulations;

• (b) subject to section 76, information respecting each

  • (i) order made under section 14,

  • (ii) directive given under subsection 27(1),

  • (iii) order made under section 60,

  • (iv) order made under section 61,

  • (v) compliance agreement entered into under section 62,

  • (vi) direction made under subsection 63(1) or (3),

  • (vii) direction made under section 66, if the Bank considers it appropriate to include that information in the registry,

  • (viii) order made under subsection 74(1) or (3);

• (c) the information that is made public under section 92; and

• (d) any other information provided for in the regulations.

Application

Marginal note:Application required

• 17 (1) A person must submit an application to the Bank in order to have their name added to the list of issuers referred to in paragraph 16(a).

• Marginal note:Contents of application

  (2) An application must contain the following information:

  • (a) information about the ownership of the applicant;

  • (b) a description of how the applicant is organized and structured and, if applicable, information about the applicant's subsidiaries, affiliates and third parties;

  • (c) a description of the technological systems that are used or that will be used by the applicant or any third parties in relation to the stablecoin that the applicant plans to issue, including the distributed ledgers, any smart contracts or computer code with respect to the issuing or redemption of the stablecoin and any other technological infrastructure through which the stablecoin will be issued or redeemed;

  • (d) the applicant's redemption policy;

  • (e) a description of the measures that the applicant has taken or plans to take to comply with sections 37 to 39;

  • (f) a statement from a lawyer of whether, in the lawyer's opinion, the measures referred to in paragraph (e) enable the applicant to comply with sections 38 and 39;

  • (g) a statement from a certified accountant of the applicant's financial condition;

  • (h) the applicant's governance policy, risk management policy, data security policy and recovery and resolution policy;

  • (i) information about any enforcement actions that have been taken in relation to the applicant under a federal, provincial or foreign law that relates to anti-money laundering or anti-terrorist financing measures, the provision of financial services, securities and derivatives, market conduct or consumer protection;

  • (j) any information requested by the Bank; and

  • (k) any information provided for in the regulations.

• Marginal note:Statement — lawyer

  (3) The statement referred to in paragraph (2)(f) must be prepared by a lawyer who, within the meaning of the regulations, is independent of the applicant and any related party of the applicant and meets any other requirements provided for in the regulations.

• Marginal note:Statement — certified accountant

  (4) The statement referred to in paragraph (2)(g) must be prepared by a certified accountant who, within the meaning of the regulations, is independent of the applicant and any related party of the applicant and meets any other requirements provided for in the regulations.

• Marginal note:Fee

  (5) An applicant must include with the application a fee that is determined by the Bank.

Marginal note:Information requested by Bank

18 An applicant must provide the Bank with any information that the Bank requests in relation to the application, within the time and in the manner provided for in the regulations, if any.

Marginal note:Notice of change

19 An applicant must notify the Bank of any change to any information that was provided to the Bank, within the time and in the manner provided for in the regulations, if any. The Bank must then notify the Minister and any designated person or government authority.

Marginal note:Application complete

20 As soon as feasible after the Bank is of the opinion that an application is complete, the Bank must

• (a) provide the Minister and any designated person or government authority, for the purpose of enabling them to assist the Minister in exercising the Minister's powers and performing the Minister's duties and functions under this Act, with the completed application;

• (b) provide the Centre with the completed application for the purpose of enabling the Centre to carry out its objects under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act; and

• (c) notify the applicant that the application is complete.

National Security Review

Marginal note:Decision to review application

• 21 (1) The Minister may, within the period provided for in the regulations, decide to review an application if the Minister is of the opinion that it is necessary to do so for reasons related to national security. If the Minister decides to review an application, the Minister must notify the Bank and the Bank must then notify the applicant.

• Marginal note:Extension of period

  (2) The Minister may extend the period for one or more periods provided for in the regulations if the Minister considers it necessary to do so and notifies the Bank. In that case, the Bank must notify the applicant of the extension.

Marginal note:Bank not authorized to add name to list

22 The Bank must not add the applicant's name to the list of issuers referred to in paragraph 16(a) during a period referred to in subsection 21(1) or (2) unless the Minister informs the Bank that the Minister has decided not to review the application.

Marginal note:Time for review

• 23 (1) If the Minister decides to review an application, the Minister must conduct the review within the period provided for in the regulations.

• Marginal note:Extension of period

  (2) The Minister may extend the period for conducting the review for one or more periods provided for in the regulations if the Minister considers it necessary to do so and notifies the Bank. In that case, the Bank must notify the applicant of the extension.

Marginal note:Bank not authorized to add name to list

24 If the Minister notifies the Bank that the Minister has decided to review an application, the Bank must not add the applicant's name to the list of issuers referred to in paragraph 16(a) unless the Minister notifies the Bank that the Minister has decided not to give a directive under subsection 27(1).

Marginal note:Notice to Bank

25 The Minister must notify the Bank if, after completing a review of an application, the Minister decides not to give a directive under subsection 27(1).

Marginal note:Additional information

• 26 (1) An applicant must provide the Minister and any designated person or government authority with any additional information that the Minister or the designated person or government authority requests in relation to the applicant or the activities that the applicant performs or plans to perform in relation to a stablecoin.

• Marginal note:Manner

  (2) A request for information under subsection (1) must be submitted to the Bank, which must then transmit it to the applicant. The applicant must provide the requested information to the Bank, which must then transmit it to the Minister and the designated person or government authority.

Marginal note:Directive to refuse application

• 27 (1) The Minister may, for any of the following reasons, give a directive to the Bank to refuse an application:

  • (a) there are reasons related to national security;

  • (b) the applicant has failed to provide additional information in accordance with section 26;

  • (c) an order made under section 70, or an undertaking required under that section, that relates to the application has not been complied with;

  • (d) a condition imposed under section 71 that relates to the application has not been complied with;

  • (e) the applicant has provided false or misleading information to the Bank, the Minister or any designated person or government authority;

  • (f) any other reason provided for in the regulations.

• Marginal note:Representations

  (2) The Minister must not give a directive to the Bank to refuse an application unless the applicant is provided with an opportunity to make representations to the Minister in respect of the matter.

Marginal note:Refusal of application

28 If the Minister gives a directive to the Bank to refuse an application, the Bank must refuse the application and, as soon as feasible, notify the applicant that the application has been refused.

Marginal note:Name added to list

29 If the Minister notifies the Bank that the Minister has decided not to give a directive to refuse an application, the Bank must, as soon as feasible, add the applicant's name to the list of issuers referred to in paragraph 16(a) and notify the applicant.

Prohibitions

Representations

Marginal note:False or misleading information

30 An issuer must not communicate or otherwise provide false or misleading information to the public.

Marginal note:Prohibition

31 An issuer must not

• (a) use terms, expressions, logos, symbols or illustrations provided for in the regulations; or

• (b) use, in a manner that is contrary to the regulations, terms, expressions, logos, symbols or illustrations provided for in the regulations.

No Interest or Yield

Marginal note:Prohibition

32 An issuer must not, directly or indirectly, grant or pay to the holder of a stablecoin that the issuer has issued any form of interest or yield in respect of that stablecoin, whether in cash, digital assets or other consideration.

Legal Tender, Deposit or Insurance

Marginal note:Prohibition

33 An issuer must not issue a stablecoin if, in Canada or a foreign jurisdiction, the stablecoin is

• (a) legal tender;

• (b) a deposit or proof of a deposit; or

• (c) insured under a public deposit insurance system or guaranteed or backstopped by a government.

Marginal note:Representations

34 An issuer must not represent a stablecoin in a manner that suggests that the stablecoin is

• (a) legal tender;

• (b) a deposit or proof of a deposit; or

• (c) insured under a public deposit insurance system or guaranteed or backstopped by a government.

Duties of Issuers

Redemption

Marginal note:Redemption

35 An issuer must redeem outstanding stablecoins in the reference currency, at par value and in accordance with the regulations, if any.

Marginal note:Redemption policy

• 36 (1) An issuer must, in accordance with the regulations, if any, establish and make publicly available a policy respecting the redemption of outstanding stablecoins that contains

  • (a) the conditions that apply to redemption, including with respect to the manner and timing of redemption and any fees or charges that may be payable to the issuer or any other person;

  • (b) a description of the roles of any third parties; and

  • (c) any information provided for in the regulations.

• Marginal note:Policy provided to Bank

  (2) An issuer must provide the Bank with the redemption policy.

Reserve of Assets

Marginal note:Duty to maintain reserve

• 37 (1) An issuer must, in accordance with the regulations, if any, maintain a reserve of assets that has a value that is equal to or greater than the par value of outstanding stablecoins.

• Marginal note:Use of assets

  (2) Subject to the regulations, an issuer must not use the assets in the reserve of assets for a purpose other than to redeem outstanding stablecoins.

• Marginal note:Composition

  (3) The reserve of assets must be composed exclusively of the reference currency or other high-quality liquid assets that are

  • (a) denominated in the reference currency; and

  • (b) provided for in the regulations or, if no regulations are made, approved by the Bank.

Marginal note:No encumbrance

38 Subject to the regulations, an issuer must not pledge as collateral, create a security or a security interest in or otherwise encumber the assets in the reserve of assets.

Marginal note:Qualified custodian — placement of assets

• 39 (1) An issuer must, in accordance with the regulations, if any, place the assets in the reserve of assets with one or more qualified custodians.

• Marginal note:Holding of assets

  (2) An issuer must, in accordance with the regulations, if any, ensure that each qualified custodian holds the assets in the reserve of assets

  • (a) in a manner that ensures that the assets are segregated from the qualified custodian's own assets and the issuer's other assets;

  • (b) in a manner that ensures that the assets are not available to satisfy creditors of the qualified custodian or the issuer, including under the Bankruptcy and Insolvency Act or a provincial or foreign law dealing with bankruptcy and insolvency, other than to satisfy any claims of the holders of a stablecoin with respect to the redemption of the stablecoin; and

  • (c) in accordance with the regulations, if any.

Policies

Marginal note:Governance policy

40 An issuer must, in accordance with the regulations, if any, establish, implement and maintain a governance policy that describes

• (a) the roles and responsibilities of the members of the issuer's governing body and senior management with respect to all activities related to a stablecoin that it issues;

• (b) the measures that the issuer has put in place to ensure accountability and oversight with respect to all activities related to a stablecoin that it issues;

• (c) the roles of third parties and the policies and procedures the issuer has established to identify and manage conflicts of interest; and

• (d) any other matter provided for in the regulations.

Marginal note:Risk management policy

41 An issuer must, in accordance with the regulations, if any, establish, implement and maintain a risk management policy that describes the measures that it has put in place to

• (a) ensure operational resilience, incident response, continuity of critical functions and recovery from disruptions;

• (b) identify and manage risks related to third parties;

• (c) implement cybersecurity safeguards to protect the issuer's systems and data against unauthorized access, disruption or misuse;

• (d) identify and manage risks related to money laundering and terrorist financing; and

• (e) address any other matter provided for in the regulations.

Marginal note:Data security policy

42 An issuer must, in accordance with the regulations, if any, establish, implement and maintain a data security policy that describes the measures that it has put in place to protect

• (a) personal information, in a manner that is appropriate to the sensitivity of the information, against loss or theft or unauthorized access, disclosure, copying, use or modification;

• (b) the data that the issuer collects, retains or reports under this Act against loss or theft or unauthorized access, disclosure, copying, use or modification; and

• (c) any other data provided for in the regulations.

Marginal note:Recovery and resolution policy

43 An issuer must, in accordance with the regulations, if any, establish, implement and maintain a recovery and resolution policy that describes the measures that it has put in place to

• (a) ensure an orderly resolution or winding down of the issuer's activities in relation to the stablecoin that it issues, including with respect to the redemption of outstanding stablecoins and the protection of stablecoin holders' claims to the reserve of assets; and

• (b) address any other matter provided for in the regulations.

Marginal note:Policies available

44 An issuer must provide the Bank with the policies referred to in sections 40 to 43 and make them publicly available in accordance with the regulations, if any.

Provision of Information

Marginal note:Information publicly available

45 An issuer must, in accordance with the regulations, if any, make any information that is provided for in the regulations publicly available.

Marginal note:Report

• 46 (1) An issuer must provide the Bank with a report that contains

  • (a) a statement from a certified accountant of

    • (i) the issuer's financial condition,

    • (ii) the number of outstanding stablecoins,

    • (iii) the composition of the issuer's reserve of assets and the fair market value of the assets in the reserve, and

    • (iv) whether, in the certified accountant's opinion, the reserve of assets satisfies the requirements of subsections 37(1) and (3);

  • (b) a statement from a lawyer of whether, in the lawyer's opinion, the issuer is in compliance with sections 38 and 39; and

  • (c) any information provided for in the regulations.

• Marginal note:Time and manner

  (2) Subject to subsection (3), an issuer must provide the Bank with the report within the time and in the manner provided for in the regulations or, if no regulations are made, within the time and in the manner determined by the Bank.

• Marginal note:Monthly statement

  (3) An issuer must provide the Bank with the information referred to in subparagraphs (1)(a)(i) to (iii) at least once every month.

• Marginal note:Report publicly available

  (4) An issuer must, in accordance with the regulations, if any, make the report publicly available, except for the information provided for in the regulations.

Marginal note:Statement of lawyer

47 At the Bank's request and within the time and in the manner determined by the Bank, an issuer must provide the Bank with a statement from a lawyer of whether, in the lawyer's opinion, the issuer is in compliance with sections 38 and 39.

Marginal note:Certified accountant

• 48 (1) The statement referred to in paragraph 46(1)(a) must be prepared by a certified accountant who, within the meaning of the regulations, is independent of the issuer and any related party of the issuer and meets any other requirements provided for in the regulations.

• Marginal note:Lawyer

  (2) The statements referred to in paragraph 46(1)(b) and section 47 must be prepared by a lawyer who, within the meaning of the regulations, is independent of the issuer and any related party of the issuer and meets any other requirements provided for in the regulations.

Marginal note:Notice of incident

• 49 (1) If an issuer becomes aware of an incident, the issuer must, without delay, notify the Bank and the Bank must then notify the Minister and any designated person or government authority.

• Marginal note:Notice

  (2) The notice must be given in accordance with the regulations, if any, and contain any information provided for in the regulations.

Marginal note:Notice of significant change

50 An issuer must, in accordance with the regulations, if any, notify the Bank of any significant change to any information that was provided to the Bank. The Bank must then notify the Minister and any designated person or government authority, in accordance with the regulations, if any.

Marginal note:Retention, use and disposal

51 An issuer must retain, use and dispose of personal information, and any other information provided for in the regulations, in accordance with the regulations, if any.

Marginal note:False or misleading information

52 A person must not provide false or misleading information to the Bank, the Minister or any designated person or government authority.

Assessment of Fees

Marginal note:Bank to ascertain expenses

• 53 (1) The Bank must, before September 30 in each year, ascertain the total amount of expenses incurred by it during the immediately preceding calendar year for or in connection with the administration of this Act and deduct from that amount any fees paid to it under subsection 17(5) in that preceding calendar year.

• Marginal note:Amount conclusive

  (2) The amount ascertained is final and conclusive for the purposes of this section.

• Marginal note:Assessment

  (3) As soon as feasible after ascertaining the amount, the Bank must assess a portion of the total amount of expenses against each issuer.

• Marginal note:Interim assessment

  (4) The Bank may, during each calendar year, prepare an interim assessment against any issuer.

• Marginal note:Assessment is binding

  (5) Every assessment and interim assessment is final and conclusive and binding on the issuer against which it is made.

• Marginal note:Recovery

  (6) Every assessment and interim assessment constitutes a debt due to the Bank, is immediately payable and may be recovered as a debt in any court of competent jurisdiction.

• Marginal note:Interest

  (7) Interest may be charged on the unpaid amount of an assessment or interim assessment at a rate equal to 2% plus the rate in effect that is prescribed under the Income Tax Act for amounts payable by the Minister of National Revenue as refunds of overpayments of tax under that Act.

Marginal note:Information request

• 54 (1) The Bank may request in writing that an issuer provide the Bank, within the time provided for in the regulations, if any, with any information that the Bank considers necessary for the purposes of subsection 53(3) or (4).

• Marginal note:Compliance with request

  (2) The issuer must comply with the request.

General

Marginal note:Information obtained by Bank

• 55 (1) Subject to subsections (2) and (3), information that is obtained under this Act by the Bank and any information prepared from that information is confidential and the Bank must treat it accordingly.

• Marginal note:Disclosure permitted — this Act

  (2) The Bank may disclose information that is obtained under this Act if it does so in accordance with section 16 or 92.

• Marginal note:Disclosure permitted

  (3) The Bank may disclose information that is obtained under this Act to the Minister, any designated person or government authority or the Centre or to any government authority or regulatory body that agrees to treat the information as confidential.

Marginal note:Information obtained by Minister

• 56 (1) Subject to subsection (2), information that is obtained under this Act by the Minister or any designated person or government authority, and any information prepared from that information, is confidential and the Minister or the designated person or government authority must treat it accordingly.

• Marginal note:Disclosure permitted

  (2) The Minister or the designated person or government authority may disclose information that is obtained under this Act to a government authority or regulatory body that agrees to treat the information as confidential.

Marginal note:Evidentiary privilege

• 57 (1) Information provided for in the regulations in relation to the supervision of issuers must not be used as evidence in any civil proceedings and is privileged for that purpose.

• Marginal note:No testimony or production

  (2) A person must not by an order of any court, tribunal or other body be required in any civil proceedings to give oral testimony or to produce any document relating to any information referred to in subsection (1).

• Marginal note:Exception to subsection (1)

  (3) Despite subsection (1), the Minister, the Governor, the Bank or the Attorney General of Canada may, in accordance with the regulations, if any, use information referred to in that subsection as evidence in any proceedings.

• Marginal note:Exception to subsection (1)

  (4) Despite subsection (1), an issuer may, in accordance with the regulations, if any, use information referred to in that subsection as evidence in any proceedings in relation to the administration or enforcement of this Act, the Bankruptcy and Insolvency Act or the Companies' Creditors Arrangement Act that are commenced by the issuer, the Minister, the Governor, the Bank or the Attorney General of Canada.

• Marginal note:Exceptions to subsections (1) and (2)

  (5) Despite subsections (1) and (2), a court, tribunal or other body may, by order, require the Minister, the Governor, the Bank or an issuer to give oral testimony or to produce any document relating to any information referred to in subsection (1) in any civil proceedings in relation to the administration or enforcement of this Act that are commenced by the Minister, the Governor, the Bank, the Attorney General of Canada or an issuer.

• Marginal note:No waiver

  (6) The disclosure of any information referred to in subsection (1), other than under subsection (3), (4) or (5), does not constitute a waiver of the privilege referred to in subsection (1).

Marginal note:No liability if good faith — Bank

• 58 (1) No action lies against His Majesty in right of Canada, any officer, employee or director of the Bank or any person acting under the direction of the Governor for anything done or omitted to be done in good faith in the administration or discharge of any powers or duties that under this Act are intended or authorized to be executed or performed.

• Marginal note:No liability if good faith — Minister

  (2) No action lies against His Majesty in right of Canada, the Minister or any person or government authority acting under the direction of the Minister for anything done or omitted to be done in good faith in the administration or discharge of any powers or duties that under this Act are intended or authorized to be executed or performed.

Administration and Enforcement

Bank's Powers

Marginal note:Information request

• 59 (1) The Bank may request in writing that a person, within the time and in the manner provided for in the regulations, if any, provide the Bank with any information that the Bank considers necessary for a purpose related to verifying compliance with this Act or carrying out the Bank's objects under this Act.

• Marginal note:Compliance with request

  (2) The person must comply with the request.

Marginal note:Undertakings

60 The Bank may, by order, require an applicant or an issuer, or any director, officer or agent or mandatary of an applicant or issuer, to provide an undertaking if the Bank is of the opinion that it is necessary to do so to ensure compliance with this Act.

Marginal note:Conditions

61 The Bank may, by order, impose conditions on an applicant or an issuer, or any director, officer or agent or mandatary of an applicant or issuer, if the Bank is of the opinion that it is necessary to do so to ensure compliance with this Act.

Marginal note:Compliance agreement

62 The Bank may enter into a compliance agreement with an issuer for the purpose of implementing any measure that is designed to further compliance by the issuer with this Act.

Marginal note:Directions — failure to comply

• 63 (1) If, in the Bank's opinion, an applicant or an issuer has failed to comply, or there are reasonable grounds to believe that an applicant or an issuer will fail to comply, with a provision of this Act or of the regulations or with an order made under section 14, an undertaking required under section 60, conditions imposed under section 61 or a compliance agreement entered into under section 62, the Bank may direct the applicant or the issuer to comply and to take any measures that, in the Bank's opinion, are necessary to do so.

• Marginal note:Representations

  (2) Subject to subsection (3), the Bank must not make a direction unless the applicant or the issuer in question is provided with an opportunity to make representations in respect of the matter.

• Marginal note:Temporary direction

  (3) If the Bank is of the opinion that the length of time required for representations to be made might be prejudicial to the public interest, the Bank may make a temporary direction that has effect for a period of not more than 15 days.

• Marginal note:Continued effect

  (4) The temporary direction continues to have effect after the end of the 15-day period if no representations are made to the Bank within that period or, if representations are made, the Bank notifies the applicant or the issuer in question that the Bank is not satisfied that there are sufficient grounds for revoking the direction.

Marginal note:Recommendation to Minister

64 The Bank may recommend to the Minister that the Minister make an order under subsection 74(1) prohibiting an issuer from issuing a stablecoin if the Bank is satisfied that the issuer has contravened this Act or the regulations or that the issuer is committing an act or pursuing a course of conduct that is an unsafe or unsound practice in relation to its business.

Prudential Measures

Marginal note:Regulations and guidelines

65 The Governor in Council may make regulations and the Bank may make guidelines respecting the maintenance by issuers of sound operational, governance and risk management practices.

Marginal note:Directions — unsafe or unsound practice

66 If the Bank is of the opinion that an issuer, or a person with respect to an issuer, is committing or is about to commit an act that is an unsafe or unsound practice in relation to the business of the issuer, or is pursuing or is about to pursue any course of conduct that is an unsafe or unsound practice in relation to that business, the Bank may direct the issuer or person to

• (a) cease or refrain from committing the act or pursuing the course of conduct; and

• (b) perform any act that, in the Bank's opinion, is necessary to remedy the situation.

Minister's Powers

Marginal note:Designation

67 The Minister may designate a person or government authority for the purposes of section 19, paragraph 20(a), section 26, paragraph 27(1)(e), subsection 49(1), sections 50 and 52, subsection 55(3) and sections 56 and 68.

Marginal note:Information request

• 68 (1) The Minister or any designated person or government authority may request in writing that a person, within the time and in the manner provided for in the regulations, if any, provide the Minister and the designated person or government authority with any information that the Minister or the designated person or government authority considers necessary for a purpose related to the exercise of the Minister's powers or the performance of the Minister's duties and functions under this Act.

• Marginal note:Manner

  (2) A request for information under subsection (1) must be submitted to the Bank, which must then transmit it to the person. The person must provide the requested information to the Bank, which must then provide it to the Minister and the designated person or government authority.

Marginal note:Authorized persons

• 69 (1) The Minister may designate persons or classes of persons as authorized persons for the purpose of this section.

• Marginal note:Information request

  (2) An authorized person may request in writing that a person, within the time and in the manner provided for in the regulations, if any, provide the authorized person with any information that the authorized person considers necessary for a purpose related to verifying compliance with an undertaking required under section 70, conditions imposed under section 71 or an order made under subsection 72(1) or (3).

• Marginal note:Manner

  (3) A request for information under subsection (2) must be submitted to the Bank, which must then transmit it to the person. The person must provide the requested information to the Bank, which must then provide it to the authorized person.

Marginal note:Undertakings

70 The Minister may, by order, require an applicant or an issuer, or any director, officer or agent or mandatary of an applicant or issuer, to provide an undertaking if the Minister is of the opinion that it is necessary to do so for reasons related to national security.

Marginal note:Conditions

71 The Minister may, by order, impose conditions on an applicant or an issuer, or any director, officer or agent or mandatary of an applicant or issuer, if the Minister is of the opinion that it is necessary to do so for reasons related to national security.

Marginal note:National security order

• 72 (1) The Minister may, by order, direct an applicant or an issuer, or any director, officer or agent or mandatary of an applicant or issuer, to take or to refrain from taking any measures related to its activities in respect of a stablecoin if the Minister is of the opinion that it is necessary to do so for reasons related to national security.

• Marginal note:Representations

  (2) Subject to subsection (3), the Minister must not make an order under subsection (1) unless the applicant, issuer or person in question is provided with an opportunity to make representations in respect of the matter.

• Marginal note:Temporary order

  (3) If, in the Minister's opinion, the length of time required for representations to be made might be prejudicial to the public interest, the Minister may make a temporary order that has the same effect as an order made under subsection (1). The temporary order ceases to have effect 30 days after the day on which it is made or after the end of a shorter period that is specified in the order.

• Marginal note:Continued effect

  (4) The temporary order continues to have effect after the end of the 30-day or the shorter period if no representations are made to the Minister within that period or, if representations are made, the Minister notifies the applicant, issuer or person in question that the Minister is not satisfied that there are sufficient grounds for revoking the order.

Marginal note:Order provided to Bank

73 The Minister must provide the Bank with each order made under section 70 or 71 or subsection 72(1) or (3) and the Bank must then, as soon as feasible, provide the applicant, issuer or person in question with the order.

Marginal note:Prohibition against issuing stablecoin

• 74 (1) The Minister may, by order, prohibit an issuer from issuing a stablecoin if the Minister is of the opinion that it is necessary to do so for reasons related to national security or that it is in the public interest to do so.

• Marginal note:Representations

  (2) Subject to subsection (3), the Minister must not make an order under subsection (1) unless the issuer in question is provided with an opportunity to make representations in respect of the matter.

• Marginal note:Temporary order

  (3) If, in the Minister's opinion, the length of time required for representations to be made might be prejudicial to the public interest, the Minister may make a temporary order that has the same effect as an order made under subsection (1). The temporary order ceases to have effect 30 days after the day on which it is made or after the end of a shorter period that is specified in the order.

• Marginal note:Continued effect

  (4) The temporary order continues to have effect after the end of the 30-day or the shorter period if no representations are made to the Minister within that period or, if representations are made, the Minister notifies the issuer in question that the Minister is not satisfied that there are sufficient grounds for revoking the order.

Marginal note:Order provided to Bank

75 As soon as feasible after making an order under subsection 74(1) or (3), the Minister must provide the order to the Bank. The Bank must then, as soon as feasible, provide the issuer in question with the order and then remove the issuer's name from the list of issuers referred to in paragraph 16(a).

Marginal note:Confidential information

• 76 (1) If the Minister is of the opinion that the disclosure of information about a directive given, undertaking required, conditions imposed or order made by the Minister under this Act, or information that could reveal the existence of the directive, undertaking, conditions or order, could pose a threat to the integrity or security of the applicant or issuer in question or could be injurious to national security, the Minister may specify that the information is confidential and must be treated accordingly.

• Marginal note:Prohibition

  (2) Despite anything in this Act, it is prohibited for any person to disclose any confidential information referred to in subsection (1) except in accordance with any conditions that the Minister may specify.

Court Enforcement

Marginal note:Governor

• 77 (1) If a person is contravening or has contravened a provision of this Act or the regulations or is not complying with an undertaking required, conditions imposed or directions made by the Bank under this Act or with an order made by the Governor under this Act, the Governor may, in addition to any other action that may be taken under this Act, apply to a superior court for an order requiring the person to cease the contravention or to comply with the provision, undertaking, conditions, directions or order.

• Marginal note:Minister

  (2) If a person is not complying with an undertaking required, conditions imposed or an order made by the Minister under this Act, the Minister may, in addition to any other action that may be taken under this Act, apply to a superior court for an order requiring the person to comply with the undertaking, conditions or order.

• Marginal note:Powers of court

  (3) The court may make the order and any other order that it thinks fit.

• Marginal note:Appeal

  (4) An appeal from an order of the court lies in the same manner and to the same court as an appeal from any other order of the court.

Appeal to Federal Court

Marginal note:Right of appeal

• 78 (1) An applicant that has been notified of a decision under section 28 or an issuer that has been provided with an order under section 75 may, within the period provided for in the regulations or within any longer period that the Federal Court allows, appeal the decision or the order to that Court.

• Marginal note:Powers of Federal Court

  (2) The Federal Court may

  • (a) dismiss the appeal; or

  • (b) set aside the decision or order and refer the matter back to the Minister for re-determination.

Administrative Monetary Penalties

Notices of Violation and Compliance Agreements

Marginal note:Violation

79 Every contravention that is designated under the regulations constitutes a violation and the person that commits the violation is liable to a penalty determined in accordance with the regulations.

Marginal note:Notice of violation

• 80 (1) If the Bank believes on reasonable grounds that a person has committed a violation, the Bank may issue and cause to be served on the person a notice of violation.

• Marginal note:Purpose of penalty

  (2) The purpose of a penalty is to promote compliance with this Act and not to punish.

Marginal note:Contents of notice

• 81 (1) A notice of violation must name the person believed to have committed a violation, identify the violation and set out

  • (a) the penalty to be paid;

  • (b) the right of the person, within 30 days after the day on which the notice is served or within any longer period that the Bank specifies, to pay the penalty or to make representations to the Governor with respect to the violation and the penalty, and the manner for doing so; and

  • (c) the fact that, if the person does not pay the penalty or make representations in accordance with the notice, the person will be deemed to have committed the violation and is liable to pay the penalty.

• Marginal note:Short-form descriptions

  (2) The Bank may establish, in respect of each violation, a short-form description to be used in notices of violation.

• Marginal note:Administrative corrections

  (3) If a notice of violation contains any error or omission, the Bank may issue and cause to be served a corrected notice of violation on the person at any time during the period referred to in paragraph (1)(b).

Marginal note:Payment of penalty

• 82 (1) If the person pays the penalty set out in the notice of violation, the person is deemed to have committed the violation and proceedings in respect of it are ended.

• Marginal note:Decision

  (2) If the person makes representations in accordance with the notice, the Governor must decide, on a balance of probabilities, whether the person committed the violation and, if so, may, subject to the regulations, impose the penalty set out in the notice, a lesser penalty or no penalty.

• Marginal note:Failure to pay or make representations

  (3) A person that neither pays the penalty set out in the notice nor makes representations in accordance with the notice is deemed to have committed the violation and is liable to pay the penalty set out in the notice.

• Marginal note:Notice of decision and right of appeal

  (4) The Bank must cause notice of any decision made under subsection (2) or the penalty that the person is liable to pay under subsection (3) to be issued and served on the person together with notice of the right of appeal under subsection 83(1).

Marginal note:Right of appeal

• 83 (1) A person on which a notice of a decision made under subsection 82(2) is served may, within 30 days after the day on which the notice is served or within any longer period that the Federal Court allows, appeal the decision to that Court.

• Marginal note:Appeal — no notice of decision

  (2) If the Bank does not cause notice of a decision to be issued and served under subsection 82(4) within 90 days after the day on which representations under subsection 82(2) were made, the person may appeal the penalty set out in the notice of violation to the Federal Court within 30 days after the day on which the 90-day period ends.

• Marginal note:Powers of Federal Court

  (3) On an appeal, the Federal Court may confirm, set aside or, subject to any regulations made under paragraph 93(z.4) or (z.5), vary the decision.

Rules About Violations

Marginal note:For greater certainty

84 For greater certainty, a violation is not an offence and, accordingly, section 126 of the Criminal Code does not apply in respect of a violation.

Marginal note:Due diligence

• 85 (1) Due diligence is a defence in a proceeding in relation to a violation.

• Marginal note:Common law principles

  (2) Every rule and principle of the common law that renders any circumstance a justification or excuse in relation to a charge for an offence applies in respect of a violation to the extent that it is consistent with this Act.

Marginal note:Liability

86 A person is liable for a violation that is committed by any of the person's employees, third parties or agents or mandataries acting in the course of their employment, their contract or the scope of their authority, whether or not the employee, third party or agent or mandatary that actually committed the violation is identified.

Recovery of Debts

Marginal note:Debts due to His Majesty

• 87 (1) The following amounts constitute a debt due to His Majesty in right of Canada that may be recovered in the Federal Court or any other court of competent jurisdiction:

  • (a) the amount of the penalty set out in a notice of violation, beginning on the day on which it is required to be paid in accordance with the notice, unless representations are made in accordance with the notice or the decision is appealed;

  • (b) if representations are made, the amount of the penalty that is imposed by the Governor, beginning on the day specified by the Governor or, if no day is specified, beginning on the day on which the decision is made;

  • (c) the amount of a penalty determined by the Federal Court under subsection 83(3), beginning on the day on which the period specified in the decision for the payment of that amount ends or the day specified in the decision; and

  • (d) the amount of any costs and expenses referred to in subsection (3).

• Marginal note:Limitation period or prescription

  (2) Proceedings to recover a debt referred to in subsection (1) may be commenced no later than the fifth anniversary of the day on which the debt becomes payable.

• Marginal note:Liability

  (3) A person that is liable to pay an amount referred to in any of paragraphs (1)(a) to (c) is also liable for the amount of any costs and expenses incurred in attempting to recover that amount.

• Marginal note:Receiver General

  (4) A debt referred to in subsection (1) that is paid or recovered is payable to and must be remitted to the Receiver General.

Marginal note:Certificate

• 88 (1) The unpaid amount of any debt referred to in subsection 87(1) may be certified by the Governor.

• Marginal note:Registration in Federal Court

  (2) Registration in the Federal Court of a certificate has the same effect as a judgment of that Court for a debt of the amount specified in the certificate and all related registration costs.

General

Marginal note:Limitation period or prescription

89 No notice of violation is to be issued after the second anniversary of the day on which the Bank becomes aware of the acts or omissions that constitute the alleged violation.

Marginal note:Certification by Bank

90 A document purporting to have been issued by the Bank, certifying the day on which the acts or omissions that constitute the alleged violation became known to the Bank, is admissible in evidence without proof of the signature or official character of the person appearing to have signed the document and, in the absence of evidence to the contrary, is proof that the Bank became aware of the acts or omissions on that day.

Marginal note:Evidence

91 In a proceeding in respect of a violation, a notice of violation purporting to be issued under subsection 80(1), a notice of decision purporting to be issued under subsection 82(4) or a certificate purporting to be made under subsection 88(1) is admissible in evidence without proof of the signature or official character of the person appearing to have signed it.

Marginal note:Publication

• 92 (1) Subject to section 76 and the regulations, the Bank must make public the nature of a violation, the name of the person that committed it and the amount of any penalty imposed.

• Marginal note:Reasons

  (2) Subject to section 76, in making public the nature of a violation, the Bank may include the reasons for its decision to issue the notice of violation and any related decision, including the relevant facts, analysis and considerations that formed part of the decision.

Regulations

Marginal note:Governor in Council

93 The Governor in Council may make regulations generally for carrying out the purposes and provisions of this Act, including regulations

• (a) defining any term that is used in the definition incident, issue, outstanding stablecoin, stablecoin or third party in section 2 but that is not defined in this Act;

• (b) respecting the exclusion under section 11, including to specify the circumstances in which the exclusion does not apply and to define "closed-loop stablecoin";

• (c) respecting the exclusion under section 12, including to specify the circumstances in which it does not apply;

• (d) respecting factors that the Governor may or must take into account for the purposes of section 14;

• (e) respecting the public registry referred to in section 16;

• (f) respecting the application referred to in section 17;

• (g) respecting the notice referred to in section 19;

• (h) respecting factors that the Bank may or must take into account for the purposes of section 20;

• (i) respecting the prohibitions under sections 30 to 34;

• (j) respecting the duty to redeem under section 35;

• (k) respecting the redemption policy referred to in section 36;

• (l) respecting the reserve of assets referred to in section 37;

• (m) respecting the prohibition under section 38;

• (n) respecting the duties under section 39;

• (o) respecting the governance policy referred to in section 40;

• (p) respecting the risk management policy referred to in section 41;

• (q) respecting the data security policy referred to in section 42;

• (r) respecting the recovery and resolution policy referred to in section 43;

• (s) respecting the duties referred to in sections 44 and 45;

• (t) respecting the report referred to in section 46;

• (u) respecting the statement referred to in section 47;

• (v) respecting the notice referred to in section 49;

• (w) respecting the notice referred to in section 50 and defining "significant change" for the purposes of that section;

• (x) respecting the duty to retain, use and dispose of information under section 51;

• (y) respecting the assessment of fees for the purposes of subsections 53(3) and (4);

• (z) prohibiting, limiting or restricting the disclosure by issuers of information referred to in section 57;

• (z.1) respecting the exercise of the Bank's power under section 66;

• (z.2) designating as a violation the contravention of a specified provision of this Act or the regulations or the non-compliance with orders made, undertakings required, compliance agreements entered into or directions made under this Act;

• (z.3) classifying each violation as a minor violation, a serious violation or a very serious violation, classifying a series of minor violations as a serious violation or a very serious violation or classifying a series of serious violations as a very serious violation;

• (z.4) establishing a penalty or a range of penalties in respect of a violation;

• (z.5) if a range of penalties is established by regulations, setting out the method of establishing the amount payable as the penalty for the violation, including the criteria to be taken into account;

• (z.6) respecting the service of documents, including the manner and proof of service and the circumstances under which documents are considered to be served;

• (z.7) respecting the keeping and retention of records;

• (z.8) providing for the circumstances in which the Bank must not make public, under subsection 92(1), the name of the person that committed a violation; and

• (z.9) providing for anything that by this Act is to be provided for in the regulations.

Marginal note:Transitional matters

94 The Governor in Council may make any regulations that the Governor in Council considers necessary to provide for any transitional matter arising from the coming into force of this Act, including to provide that all or a portion of this Act does not apply for a period provided for in the regulations, to an issuer that was issuing a stablecoin on the day before the day on which section 15 comes into force.

Marginal note:Classes

95 Regulations made under section 93 or 94 may distinguish among different classes of issuers or stablecoins.

Marginal note:Statutory Instruments Act

96 The Statutory Instruments Act does not apply in respect of

• (a) an order made under section 14;

• (b) a directive given under subsection 27(1);

• (c) an order made under section 60 or 61;

• (d) a direction made under subsection 63(1) or (3);

• (e) a direction made under section 66;

• (f) an order made under section 70 or 71;

• (g) an order made under subsection 72(1) or (3); and

• (h) an order made under subsection 74(1) or (3).

Coming into Force

Marginal note:Order in council

97 The provisions of this Act come into force on a day or days to be fixed by order of the Governor in Council.

Consequential and Related Amendments

R.S., c. A-1Access to Information Act

601 Schedule II to the Access to Information Act is amended by adding, in alphabetical order, a reference to

• Stablecoin Act

  Loi sur les cryptomonnaies stables

and a corresponding reference to "sections 55 and 56".

2000, c. 17, 2001, c. 41, s. 48Proceeds of Crime (Money Laundering) and Terrorist Financing Act

602 Subsection 53.32(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act is replaced by the following:

Marginal note:National security or integrity of financial system

• 53.32 (1) For the purpose of assisting the Minister in determining whether to grant, revoke, suspend or amend an approval or in exercising the Minister's powers or performing the Minister's functions and duties under any of sections 32 to 47 and 96 of the Retail Payment Activities Act or sections 21 to 29 and 67 to 76 and subsection 77(2) of the Stablecoin Act, the Director may, at the request of the Minister or an officer of the Department of Finance, disclose to the Minister or the officer, as the case may be, any information that is under the control of the Centre and that relates to national security or to safeguarding the integrity of Canada's financial system.

603 Subsections 65.03(1) and (2) of the Act are replaced by the following:

Marginal note:Disclosure to Bank of Canada

• 65.03 (1) The Centre may disclose to the Bank of Canada any information relating to the compliance with Part 1 or 1.1 of persons or entities to whom Part 1 or 1.1 applies if the Centre is of the opinion that the information is relevant to the Bank of Canada's objects under the Retail Payment Activities Act or the Stablecoin Act.

• Marginal note:Limitation

  (2) Any information disclosed by the Centre under subsection (1) may be used by the Bank of Canada only for the purpose of carrying out the Bank of Canada's objects under the Retail Payment Activities Act or the Stablecoin Act or, in relation to a provision of either of those Acts that is not in force, for the purpose of planning to carry out those objects.

2021, c. 23, s. 177Retail Payment Activities Act

604 The definition payment function in section 2 of the Retail Payment Activities Act is amended by striking out "or" at the end of paragraph (d), by adding "or" at the end of paragraph (e) and by adding the following after paragraph (e):

• (f) the transmission or maintenance of an end user's encrypted or tokenized payment instrument or an end user's private key, whether or not the private key is encrypted or tokenized. (fonction de paiement)

605 Subsection 18(1) 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) any prescribed individual or entity, if the incident relates to a unit that meets prescribed criteria.

Coming into Force

Marginal note:Order in council

606 Sections 601 to 605 come into force on a day or days to be fixed by order of the Governor in Council.

SCHEDULE 1(Section 187)

SCHEDULE 3(Subsection 2(1), section 30, subsections 31(3), 33(1), 35(3) and 40(1) and section 44)

Column 1	Column 2	Column 3	Column 4
First Nation	Governing Body	Lands	Specified Product

SCHEDULE 2(Section 224)

SCHEDULE(Section 2, subsections 13(1) to (3), 14(1) and (2) and 15(1) and paragraph 44(b))

SCHEDULE 3(Section 290)

SCHEDULE V(Sections 14.12 and 992)

	Column 1	Column 2
Item	Province	Instrument
1	Ontario	National Instrument 51-102 Continuous Disclosure Obligations, made a rule of the Ontario Securities Commission and published on April 2, 2004, (2004) 27 OSCB 3439, as amended from time to time
2	Quebec	Regulation 51-102 respecting Continuous Disclosure Obligations, CQLR, c. V-1.1, r. 24, as amended from time to time
3	Nova Scotia	National Instrument 51-102 Continuous Disclosure Obligations, made a rule of the Nova Scotia Securities Commission and published in the Nova Scotia Royal Gazette, Part I, on March 15, 2004, as amended from time to time
4	New Brunswick	National Instrument 51-102 Continuous Disclosure Obligations, made a rule of the Financial and Consumer Services Commission of New Brunswick, as amended from time to time
5	Manitoba	Manitoba Securities Commission Rule 2003-17, National Instrument 51-102 Continuous Disclosure Obligations, as amended from time to time
6	British Columbia	National Instrument 51-102 Continuous Disclosure Obligations, B.C. Reg. 110/2004, as amended from time to time
7	Prince Edward Island	National Instrument 51-102 Continuous Disclosure Obligations, implemented by Rule 51-802 Implementing National Instrument 51-102 Continuous Disclosure Obligations, made under the Securities Act, R.S.P.E.I. 1988, c. S-3.1, as amended from time to time
8	Saskatchewan	National Instrument 51-102 Continuous Disclosure Obligations, set out in Part XXXVI of the Appendix to The Securities Commission (Adoption of National Instruments) Regulations, R.R.S. c. S-42.2, Reg. 3, as amended from time to time
9	Alberta	National Instrument 51-102 Continuous Disclosure Obligations, made a rule of the Alberta Securities Commission and published in the Alberta Gazette, Part 1, on March 15, 2004, as amended from time to time
10	Newfoundland and Labrador	National Instrument 51-102 Continuous Disclosure Obligations, implemented by Rule 51-801 Implementing National Instrument 51-102 Continuous Disclosure Obligations, made under the Securities Act, R.S.N.L. 1990, c. S-13, as amended from time to time
11	Yukon	National Instrument 51-102 Continuous Disclosure Obligations, implemented by Rule Respecting the Implementation of CSA Instruments and Policies (Local Rule 11-802), made under the Securities Act, S.Y. 2007, c. 16, as amended from time to time
12	Northwest Territories	National Instrument 51-102 Continuous Disclosure Obligations, implemented by Implementing Rule 51-802 Continuous Disclosure Obligations, made under the Securities Act, S.N.W.T. 2008, c. 10, as amended from time to time
13	Nunavut	National Instrument 51-102 Continuous Disclosure Obligations, adopted by the Adoption of National and Multilateral Instruments (Securities Act) Regulations, R-018-2005, as amended from time to time

	Column 1	Column 2
Item	Province	Instrument
1	Ontario	National Instrument 54-101 Communication with Beneficial Owners of Securities of a Reporting Issuer, made a rule of the Ontario Securities Commission and published on June 14, 2002, (2002) 25 OSCB 3361, as amended from time to time
2	Quebec	Regulation 54-101 respecting Communication with Beneficial Owners of Securities of a Reporting Issuer, CQLR, c. V-1.1, r. 29, as amended from time to time
3	Nova Scotia	National Instrument 54-101 Communication with Beneficial Owners of Securities of a Reporting Issuer, made a rule of the Nova Scotia Securities Commission and published in the Nova Scotia Royal Gazette, Part I, on July 3, 2002, as amended from time to time
4	New Brunswick	National Instrument 54-101 Communication with Beneficial Owners of Securities of a Reporting Issuer, made a rule of the Financial and Consumer Services Commission of New Brunswick, as amended from time to time
5	Manitoba	Manitoba Securities Commission Rule 2002-1, National Instrument 54-101 Communication with Beneficial Owners of Securities of a Reporting Issuer, as amended from time to time
6	British Columbia	National Instrument 54-101 Communication with Beneficial Owners of Securities of a Reporting Issuer, B.C. Reg. 154/2002, as amended from time to time
7	Prince Edward Island	National Instrument 54-101 Communication with Beneficial Owners of Securities of a Reporting Issuer, implemented by Rule 54-801 Implementing National Instrument 54-101 Communication with Beneficial Owners of Securities of a Reporting Issuer, made under the Securities Act, R.S.P.E.I. 1988, c. S-3.1, as amended from time to time
8	Saskatchewan	National Instrument 54-101 Communication with Beneficial Owners of Securities of a Reporting Issuer, set out in Part XXIV of the Appendix to the Securities Commission (Adoption of National Instruments) Regulations, R.R.S. c. S-42.2, Reg. 3, as amended from time to time
9	Alberta	National Instrument 54-101 Communication with Beneficial Owners of Securities of a Reporting Issuer, made a rule of the Alberta Securities Commission and published in the Alberta Gazette, Part 1, on June 29, 2002, as amended from time to time
10	Newfoundland and Labrador	National Instrument 54-101 Communication with Beneficial Owners of Securities of a Reporting Issuer, made a rule by the Superintendent of Securities of Newfoundland and Labrador under the Securities Act, R.S.N.L. 1990, c. S-13, as amended from time to time
11	Yukon	National Instrument 54-101 Communication with Beneficial Owners of Securities of a Reporting Issuer, implemented by Rule Respecting the Implementation of CSA Instruments and Policies (Local Rule 11-802), made under the Securities Act, S.Y. 2007, c. 16, as amended from time to time
12	Northwest Territories	National Instrument 54-101 Communication with Beneficial Owners of Securities of a Reporting Issuer, implemented by Implementing Rule 54-801 Communication with Beneficial Owners of Securities of a Reporting Issuer, made under the Securities Act, S.N.W.T. 2008, c. 10, as amended from time to time
13	Nunavut	National Instrument 54-101 Communication with Beneficial Owners of Securities of a Reporting Issuer, adopted by the Adoption of National and Multilateral Instruments (Securities Act) Regulations, R-018-2005, as amended from time to time

SCHEDULE 4(Section 370)

SCHEDULE IV(Sections 74.1 and 91.2)Basic Pension for the Covered Period

Column 1	Column 2
Date	Basic Pension ($)
April 1, 1985​	1,146.83
January 1, 1986​	1,191.56
January 1, 1987​	1,240.40
January 1, 1988​	1,293.75
January 1, 1989​	1,346.79
January 1, 1990​	1,410.09
January 1, 1991​	1,477.77
January 1, 1992​	1,563.48
January 1, 1993​	1,591.62
January 1, 1994​	1,621.86
January 1, 1995​	1,629.97
January 1, 1996​	1,659.31
January 1, 1997​	1,684.20
January 1, 1998​	1,716.20
January 1, 1999​	1,731.65
January 1, 2000​	1,776.75
January 1, 2001​	1,821.17
January 1, 2002​	1,875.81
January 1, 2003​	1,936.65
January 1, 2004​	1,998.62
January 1, 2005​	2,032.60
January 1, 2006​	2,209.38
January 1, 2007​	2,258.92
January 1, 2008​	2,304.10
January 1, 2009​	2,361.70
January 1, 2010​	2,436.32
January 1, 2011​	2,478.08
January 1, 2012​	2,547.47
January 1, 2013​	2,593.32
January 1, 2014​	2,616.66
January 1, 2015​	2,663.76
January 1, 2016​	2,695.73
January 1, 2017​	2,733.47
January 1, 2018​	2,792.53
January 1, 2019​	2,856.76
January 1, 2020​	2,911.04
January 1, 2021​	2,940.15
January 1, 2022​	3,019.53
January 1, 2023​	3,215.80
January 1, 2024​	3,357.30
January 1, 2025​	3,444.59

SCHEDULE 5(Section 445)

SCHEDULE(Subsection 3(1), section 8, subsections 9(4), 10(1) and 10(2) and paragraph 12(2)(b))Prohibited Human Pathogens and Toxins

PART 1
Toxins

PART 2
Human Pathogens

• Variola virus

  Virus de la variole

SCHEDULE 6(Section 507)

SCHEDULE 2(Section 2, subsections 15.1(1) to (3) and section 19)