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AMENDMENTS TO THE EXCISE ACT, 2001, THE EXCISE TAX ACT (OTHER THAN GST/HST MEASURES) AND THE AIR TRAVELLERS SECURITY CHARGE ACT
2002, c. 22
Excise Act, 2001
Amendments to the Act
62. (1) The portion of subsection 42(1) of the French version of the Excise Act, 2001 before paragraph (a) is replaced by the following:
Imposition
42. (1) Un droit sur les produits du tabac fabriqués au Canada ou importés et sur le tabac en feuilles importé est imposé aux taux prévus à l’annexe 1 et est exigible :
(2) Subsection (1) is deemed to have come into force on February 12, 2014.
63. (1) The portion of section 43 of the French version of the Act before paragraph (a) is replaced by the following:
Droit additionnel sur les cigares
43. Est imposé aux taux prévus à l’annexe 2, en plus du droit imposé en vertu de l’article 42, un droit sur les cigares qui sont fabriqués et vendus au Canada ou importés. Ce droit est exigible :
(2) Subsection (1) is deemed to have come into force on February 12, 2014.
64. (1) The Act is amended by adding the following after section 43:
Definition of “inflationary adjusted year”
43.1 (1) In this section, “inflationary adjusted year” means 2019 and every fifth year after that year.
Adjustments
(2) Each rate of duty set out in sections 1 to 4 of Schedule 1 and paragraph (a) of Schedule 2 in respect of a tobacco product is to be adjusted on December 1 of a particular inflationary adjusted year so that the rate is equal to the greater of
(a) the rate determined by the formula
A × B
where
A      is the rate of duty applicable to the tobacco product on November 30 of the particular inflationary adjusted year, and
B      is the amount determined by the formula in subparagraph (i) or (ii), rounded to the nearest one-thousandth, or, if the amount is equidistant from two consecutive one-thousandths, rounded to the higher one-thousandth,
(i) if the particular inflationary adjusted year is 2019,
C/D
where
C      is the Consumer Price Index for the 12-month period ending on September 30, 2019, and
D      is the Consumer Price Index for the 12-month period that ended on September 30, 2013,
(ii) for any other particular inflationary adjusted year,
E/F
where
E      is the Consumer Price Index for the 12-month period ending on September 30 of the particular inflationary adjusted year, and
F      is the Consumer Price Index for the 12-month period ending on September 30 of the inflationary adjusted year that precedes the particular inflationary adjusted year; and
(b) the rate of duty referred to in the description of A in paragraph (a).
Rounding
(3) The adjusted rate determined under subsection (2) is to be rounded to the nearest one-hundred-thousandth or, if the adjusted rate is equidistant from two consecutive one-hundred-thousandths, to the higher one-hundred-thousandth.
Consumer Price Index
(4) In this section, the Consumer Price Index for any 12-month period is the result arrived at by
(a) aggregating the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, for each month in that period;
(b) dividing the aggregate obtained under paragraph (a) by 12; and
(c) rounding the result obtained under paragraph (b) to the nearest one-thousandth or, if the result obtained is equidistant from two consecutive one-thousandths, to the higher one-thousandth.
(2) Subsection (1) is deemed to have come into force on February 12, 2014.
2008, c. 28, s. 56(1)
65. (1) Subsection 53(1) of the French version of the Act is replaced by the following:
Droit spécial sur le tabac fabriqué importé livré à une boutique hors taxes
53. (1) Un droit spécial est imposé, aux taux prévus à l’article 1 de l’annexe 3, sur le tabac fabriqué importé qui est livré à une boutique hors taxes et qui n’est pas estampillé.
(2) Subsection (1) is deemed to have come into force on February 12, 2014.
66. (1) Subsection 54(2) of the French version of the Act is replaced by the following:
Droit spécial sur le tabac du voyageur
(2) Un droit spécial est imposé, aux taux prévus à l’article 2 de l’annexe 3, sur le tabac du voyageur au moment de son importation.
(2) Subsection (1) is deemed to have come into force on February 12, 2014.
67. (1) Paragraphs 56(1)(a) and (b) of the French version of the Act are replaced by the following:
a) si l’exportation est effectuée conformément à l’alinéa 50(4)a) par le titulaire de licence de tabac qui a fabriqué les produits, les taux prévus à l’article 3 de l’annexe 3;
b) sinon, les taux prévus à l’article 4 de l’annexe 3.
(2) Subsection (1) is deemed to have come into force on February 12, 2014.
2006, c. 4, s. 34(1)
68. (1) The heading “TOBACCO PROD-UCTS INVENTORY TAX” before section 58.1 of the Act is replaced by the following:
CIGARETTE INVENTORY TAX
(2) Subsection (1) is deemed to have come into force on February 12, 2014.
2006, c. 4, s. 34(1); 2007, c. 35, s. 197(1)
69. (1) The definitions “loose tobacco”, “taxed tobacco” and “unit” in section 58.1 of the Act are repealed.
(2) Section 58.1 of the Act is amended by adding the following in alphabetical order:
“adjustment day”
« date d’ajustement »
“adjustment day” means
(a) February 12, 2014; or
(b) in the case of an inflationary adjusted year, December 1 of that year.
“inflationary adjusted year”
« année inflationniste »
“inflationary adjusted year” has the same meaning as in subsection 43.1(1).
“taxed cigarettes”
« cigarettes imposées »
“taxed cigarettes” of a person means cigarettes in respect of which duty has been imposed under section 42 before February 12, 2014 at the rate set out in paragraph 1(b) of Schedule 1, as that provision read on February 11, 2014, and that, at the beginning of February 12, 2014,
(a) were owned by that person for sale in the ordinary course of a business of the person;
(b) were not held in a vending machine; and
(c) were not relieved from that duty under this Act.
(3) The portion of the definition “taxed cigarettes” in section 58.1 of the Act before paragraph (a) is replaced by the following:
“taxed cigarettes”
« cigarettes imposées »
“taxed cigarettes” of a person means cigarettes in respect of which duty has been imposed under section 42 or 53 at the rate applicable on the day before an adjustment day other than February 12, 2014, and that, at the beginning of the adjustment day,
(4) Subsections (1) and (2) are deemed to have come into force on February 12, 2014.
(5) Subsection (3) comes into force on November 30, 2019.
2006, c. 4, s. 34(1); 2007, c. 35, ss. 198(1) and 199(1)
70. (1) Sections 58.2 to 58.4 of the Act are replaced by the following:
Imposition of tax — 2014 increase
58.2 (1) Subject to section 58.3, every person shall pay to Her Majesty a tax on all taxed cigarettes of the person held at the beginning of February 12, 2014 at the rate of $0.02015 per cigarette.
Imposition of tax — inflationary adjusted years
(2) Subject to section 58.3, every person shall pay to Her Majesty a tax on all taxed cigarettes of the person held at the beginning of December 1 of an inflationary adjusted year at a rate per cigarette equal to
(a) in the case of cigarettes in respect of which duty has been imposed under section 42, the amount determined by the formula
(A – B)/5
where
A      is the rate of duty applicable under paragraph 1(b) of Schedule 1 for each five cigarettes on December 1 of the inflationary adjusted year, and
B      is the rate of duty applicable under section 1 of Schedule 1 for each five cigarettes on November 30 of the inflationary adjusted year; and
(b) in the case of cigarettes in respect of which duty has been imposed under section 53, the amount determined by the formula
C – D
where
C      is the rate of duty applicable under paragraph 1(a) of Schedule 3 per cigarette on December 1 of the inflationary adjusted year, and
D      is the rate of duty applicable under paragraph 1(a) of Schedule 3 per cigarette on November 30 of the inflationary adjusted year.
Rounding
(3) The amount determined under paragraph (2)(a) or (b) is to be rounded to the nearest one-hundred-thousandth or, if the amount is equidis-tant from two consecutive one-hundred-thousandths, to the higher one-hundred-thousandth.
Exemption for small retail inventory
58.3 Tax under this Part in respect of the inventory of all taxed cigarettes of a person that is held at the beginning of an adjustment day at a separate retail establishment of the person is not payable if that retail establishment holds inventory of 30,000 or fewer cigarettes.
Taking of inventory
58.4 Every person liable to pay tax under this Part shall, for the purposes of this Part, determine that person’s inventory of all taxed cigarettes held at the beginning of an adjustment day.
(2) Subsection (1) is deemed to have come into force on February 12, 2014.
2007, c. 35, s. 200(1)
71. (1) Subsection 58.5(1) of the Act is replaced by the following:
Returns
58.5 (1) Every person liable to pay tax under this Part shall file a return with the Minister in the prescribed form and manner on or before,
(a) in the case of the tax imposed under subsection 58.2(1), April 30, 2014; or
(b) in any other case, the last day of the month following December of an inflationary adjusted year.
(2) Subsection (1) is deemed to have come into force on February 12, 2014.
2007, c. 35, s. 201(1)
72. (1) Subsection 58.6(1) of the Act is replaced by the following:
Payment
58.6 (1) Every person shall pay to the Receiver General the total tax payable by the person under this Part on or before
(a) in the case of the tax imposed under subsection 58.2(1), April 30, 2014; or
(b) in any other case, the last day of the month following December of an inflationary adjusted year.
(2) Subsection (1) is deemed to have come into force on February 12, 2014.
2008, c. 28, s. 58(1)
73. (1) Section 180.1 of the Act is replaced by the following:
Refund — imported black stock tobacco
180.1 (1) The Minister may refund to a person who has imported manufactured tobacco an amount determined in accordance with subsection (2) in respect of the tobacco if
(a) the person provides evidence satisfactory to the Minister that
(i) duty was imposed on the tobacco under section 42 at a rate set out in paragraph 1(b), 2(b) or 3(b) of Schedule 1, as those paragraphs read on February 11, 2014, and paid, and
(ii) the tobacco was black stock
(A) that was delivered to a duty free shop or customs bonded warehouse, or to a person for use as ships’ stores in accordance with the Ships’ Stores Regulations, before February 12, 2014, or
(B) that was exported before February 12, 2014 for delivery to a foreign duty free shop or as foreign ships’ stores; and
(b) the person applies to the Minister for the refund within two years after the tobacco was imported.
Determination of refund
(2) The amount of the refund is equal to the amount by which
(a) the duty referred to in subparagraph (1)(a)(i)
exceeds
(b) the duty that would have been imposed under section 42 on the tobacco if the applicable rate of duty had been the rate set out in paragraph 1(a), 2(a) or 3(a) of Schedule 1, as those paragraphs read on February 11, 2014.
(2) Section 180.1 of the Act is repealed.
(3) Subsection (1) is deemed to have come into force on February 12, 2014.
(4) Subsection (2) comes into force on February 12, 2016.
74. (1) The Act is amended by adding the following after section 207:
Electronic funds transfer
207.1 For greater certainty, information obtained by the Minister under Part XV.1 of the Income Tax Act may be used for the purposes of this Act.
(2) Subsection (1) comes into force on January 1, 2015.
75. (1) Paragraph 211(6)(e) of the Act is amended by striking out “or” at the end of subparagraph (vi), by adding “or” at the end of subparagraph (vii) and by adding the following after subparagraph (vii):
(viii) to an official of the Financial Transactions and Reports Analysis Centre of Canada solely for the purpose of enabling the Centre to evaluate the usefulness of information provided by the Centre to the Canada Revenue Agency under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act;
(2) Subsection 211(6) of the Act is amended by striking out “or” at the end of paragraph (l), by adding “or’’ at the end of paragraph (m) and by adding the following after paragraph (m):
(n) provide confidential information to a person who has — under a program ad-ministered by the Canada Revenue Agency to obtain information relating to tax non-compliance — entered into a contract to provide information to the Canada Revenue Agency, to the extent necessary to inform the person of any amount they may be entitled to under the contract and of the status of their claim under the contract.
(3) Section 211 of the Act is amended by adding the following after subsection (6.3):
Serious offences
(6.4) An official may provide to a law enforcement officer of an appropriate police organization
(a) confidential information, if the official has reasonable grounds to believe that the information will afford evidence of an act or omission in or outside of Canada that, if committed in Canada, would be
(i) an offence under any of
(A) section 3 of the Corruption of Foreign Public Officials Act,
(B) sections 119 to 121, 123 to 125 and 426 of the Criminal Code,
(C) section 465 of the Criminal Code as it relates to an offence described in clause (B), and
(D) sections 144, 264, 271, 279, 279.02, 281 and 333.1, paragraphs 334(a) and 348(1)(e) and sections 349, 435 and 462.31 of the Criminal Code,
(ii) a terrorism offence or a criminal organization offence, as those terms are defined in section 2 of the Criminal Code, for which the maximum term of imprisonment is 10 years or more, or
(iii) an offence
(A) that is punishable by minimum term of imprisonment,
(B) for which the maximum term of imprisonment is 14 years or life, or
(C) for which the maximum term of imprisonment is 10 years and that
(I) resulted in bodily harm,
(II) involved the import, export, trafficking or production of drugs, or
(III) involved the use of a weapon; and
(b) information setting out the reasonable grounds referred to in paragraph (a), to the extent that any such grounds rely on information referred to in that paragraph.
2007, c. 35, s. 202(1); 2008, c. 28, s. 61(1); 2013, c. 33, s. 54(1)
76. (1) Paragraph 216(2)(a) of the Act is replaced by the following:
(a) the total of
(i) $0.21 multiplied by the number of cigarettes to which the offence relates,
(ii) $0.21 multiplied by the number of tobacco sticks to which the offence relates,
(iii) $0.26 multiplied by the number of grams of manufactured tobacco other than cigarettes or tobacco sticks to which the offence relates, and
(iv) $0.41 multiplied by the number of cigars to which the offence relates, and
(2) Paragraph 216(2)(a) of the Act is replaced by the following:
(a) the total of
(i) in the case of cigarettes, the number of cigarettes to which the offence relates multiplied by the amount, rounded to the nearest one-hundredth, or, if the amount is equidistant from two consecutive one-hundredths, rounded to the higher one-hundredth, determined by the formula
(A/5) × 2
where
A      is the rate of duty applicable under section 1 of Schedule 1 for each five cigarettes at the time the offence was committed,
(ii) in the case of tobacco sticks, the number of tobacco sticks to which the offence relates multiplied by the amount, rounded to the nearest one-hundredth, or, if the amount is equidistant from two consecutive one-hundredths, rounded to the higher one-hundredth, determined by the formula
B × 2
where
B      is the rate of duty applicable under section 2 of Schedule 1 per tobacco stick at the time the offence was committed,
(iii) in the case of manufactured tobacco other than cigarettes or tobacco sticks, the number of grams of manufactured tobacco to which the offence relates multiplied by the amount, rounded to the nearest one-hundredth, or, if the amount is equidistant from two consecutive one-hundredths, rounded to the higher one-hundredth, determined by the formula
(C/50) × 2
where
C      is the rate of duty applicable under section 3 of Schedule 1 per 50 grams at the time the offence was committed, and
(iv) in the case of cigars, the number of cigars to which the offence relates multiplied by the amount, rounded to the nearest one-hundredth, or, if the amount is equidis- tant from two consecutive one-hundredths, rounded to the higher one-hundredth, determined by the formula
D × 5
where
D      is the rate of duty applicable under paragraph (a) of Schedule 2 per cigar at the time the offence was committed, and
2007, c. 35, s. 202(2); 2008, c. 28, s. 61(2); 2013, c. 33, s. 54(2)
(3) Paragraph 216(3)(a) of the Act is replaced by the following:
(a) the total of
(i) $0.32 multiplied by the number of cigarettes to which the offence relates,
(ii) $0.32 multiplied by the number of tobacco sticks to which the offence relates,
(iii) $0.39 multiplied by the number of grams of manufactured tobacco other than cigarettes or tobacco sticks to which the offence relates, and
(iv) $0.82 multiplied by the number of cigars to which the offence relates, and
(4) Paragraph 216(3)(a) of the Act is replaced by the following:
(a) the total of
(i) in the case of cigarettes, the number of cigarettes to which the offence relates multiplied by the amount, rounded to the nearest one-hundredth, or, if the amount is equidistant from two consecutive one-hundredths, rounded to the higher one-hundredth, determined by the formula
(A/5) × 3
where
A      is the rate of duty applicable under section 1 of Schedule 1 for each five cigarettes at the time the offence was committed,
(ii) in the case of tobacco sticks, the number of tobacco sticks to which the offence relates multiplied by the amount, rounded to the nearest one-hundredth, or, if the amount is equidistant from two consecutive one-hundredths, rounded to the higher one-hundredth, determined by the formula
B × 3
where
B      is the rate of duty applicable under section 2 of Schedule 1 per tobacco stick at the time the offence was committed,
(iii) in the case of manufactured tobacco other than cigarettes or tobacco sticks, the number of grams of manufactured tobacco to which the offence relates multiplied by the amount, rounded to the nearest one-hundredth, or, if the amount is equidistant from two consecutive one-hundredths, rounded to the higher one-hundredth, determined by the formula
(C/50) × 3
where
C      is the rate of duty applicable under section 3 of Schedule 1 per 50 grams at the time the offence was committed, and
(iv) in the case of cigars, the number of cigars to which the offence relates multiplied by the amount, rounded to the nearest one-hundredth, or, if the amount is equidis- tant from two consecutive one-hundredths, rounded to the higher one-hundredth, determined by the formula
D × 10
where
D      is the rate of duty applicable under paragraph (a) of Schedule 2 per cigar that applied at the time the offence was committed, and
(5) Subsections (2) and (4) come into force on December 1, 2019.
2007, c. 18, s. 122
77. (1) Section 236 of the Act is repealed.
(2) Subsection (1) is deemed to have come into force on February 12, 2014.
2007, c. 35, s. 203(1); 2008, c. 28, s. 62; 2013, c. 33, s. 55
78. (1) Paragraphs 240(a) to (c) of the Act are replaced by the following:
(a) $0.40 per cigarette that was removed in contravention of that subsection,
(b) $0.40 per tobacco stick that was removed in contravention of that subsection, and
(c) $502.19 per kilogram of manufactured tobacco, other than cigarettes and tobacco sticks, that was removed in contravention of that subsection.
(2) Paragraphs 240(a) to (c) of the Act are replaced by the following:
(a) in the case of cigarettes, the number of cigarettes that were removed in contravention of that subsection multiplied by the amount, rounded to the nearest one-hundredth, or, if the amount is equidistant from two consecutive one-hundredths, rounded to the higher one-hundredth, determined by the formula
(A/5 + B) × 2
where
A      is the rate of duty set out in section 1 of Schedule 1 that applied at the time the cigarettes were removed, and
B      is the rate of duty set out in paragraph 4(a) of Schedule 3 that applied at the time the cigarettes were removed,
(b) in the case of tobacco sticks, the number of tobacco sticks that were removed in contravention of that subsection multiplied by the amount, rounded to the nearest one-hundredth, or, if the amount is equidistant from two consecutive one-hundredths, rounded to the higher one-hundredth, determined by the formula
(C + D) × 2
where
C      is the rate of duty set out in section 2 of Schedule 1 that applied at the time the tobacco sticks were removed, and
D      is the rate of duty set out in paragraph 4(b) of Schedule 3 that applied at the time the tobacco sticks were removed, and
(c) in the case of manufactured tobacco other than cigarettes and tobacco sticks, the number of kilograms of manufactured tobacco that were removed in contravention of that subsection multiplied by the amount, rounded to the nearest one-hundredth, or, if the amount is equidistant from two consecutive one-hundredths, rounded to the higher one-hundredth, determined by the formula
(E + F) × 40
where
E      is the rate of duty set out in section 3 of Schedule 1 that applied at the time the manufactured tobacco was removed, and
F      is the rate of duty set out in paragraph 4(c) of Schedule 3 that applied at the time the manufactured tobacco was removed.
(3) Subsection (2) comes into force on December 1, 2019.
2003, c. 15, s. 47(1); 2007, c. 35, ss. 204(1) and 207(1); 2008, c. 28, ss. 63(1) and (2); 2013, c. 33, ss. 56(1) and (2)
79. (1) The portion of Schedule 1 to the Act before section 5 is replaced by the following:
SCHEDULE 1
(Sections 42, 43.1 and 58.2)
RATES OF DUTY ON TOBACCO PRODUCTS
1. Cigarettes: for each five cigarettes or fraction of five cigarettes contained in any package,
(a) $0.52575; or
(b) if the rate referred to in paragraph (a) has been adjusted under subsection 43.1(2), the adjusted rate.
2. Tobacco sticks: per stick,
(a) $0.10515; or
(b) if the rate referred to in paragraph (a) has been adjusted under subsection 43.1(2), the adjusted rate.
3. Manufactured tobacco other than cigarettes and tobacco sticks: per 50 grams or fraction of 50 grams contained in any package,
(a) $6.57188; or
(b) if the rate referred to in paragraph (a) has been adjusted under subsection 43.1(2), the adjusted rate.
4. Cigars: per 1,000 cigars,
(a) $22.88559; or
(b) if the rate referred to in paragraph (a) has been adjusted under subsection 43.1(2), the adjusted rate.
(2) Schedule 1 to the Act is amended by replacing the references after the heading “SCHEDULE 1” with the following:
(Sections 42, 43.1 and 58.2, subsections 216(2) and (3) and section 240)
(3) Subsection (1) is deemed to have come into force on February 12, 2014.
(4) Subsection (2) comes into force on December 1, 2019.
2007, c. 35, ss. 208(1) and (2)
80. (1) Schedule 2 to the Act is replaced by the following:
SCHEDULE 2
(Sections 43 and 43.1)
ADDITIONAL DUTY ON CIGARS
Cigars: per cigar, the greater of
(a) either
(i) $0.08226, or
(ii) if the rate referred to in subparagraph (i) has been adjusted under subsection 43.1(2), the adjusted rate; and
(b) the amount obtained by multiplying the sale price, in the case of cigars manufactured in Canada, or the duty-paid value, in the case of imported cigars, by the following percent-age:
(i) if the rate referred to in subparagraph (a)(i) has not been adjusted under subsection 43.1(2), 82%, or
(ii) if the rate referred to in subparagraph (a)(i) has been adjusted under subsection 43.1(2), the amount, rounded to the nearest whole number, or, if the amount is equidistant from two consecutive whole numbers, to the higher whole number, expressed as a percentage, determined by the formula
A × 1000
where
A      is the adjusted rate referred to in subparagraph (a)(ii), as if that rate were not expressed in dollars.
(2) Schedule 2 to the Act is amended by replacing the references after the heading “SCHEDULE 2” with the following:
(Sections 43 and 43.1 and subsections 216(2) and (3))
(3) Subsection (1) is deemed to have come into force on February 12, 2014.
(4) Subsection (2) comes into force on December 1, 2019.
2003, c. 15, ss. 51 to 53; 2008, c. 28, ss. 65(1), 66(1) and 67(1); 2013, c. 33, ss. 57(1), 58(1) and 59(1)
81. (1) The portion of Schedule 3 to the Act before section 4 is replaced by the following:
SCHEDULE 3
(Sections 53, 54, 56 and 58.2)
RATES OF SPECIAL DUTIES ON CERTAIN MANUFACTURED TOBACCO
1. Special duty on imported manufactured tobacco:
(a) in dollars per cigarette, the rate determined by the formula, rounded to the nearest one-hundred-thousandth, or, if the rate is equidistant from two consecutive one-hundred-thousandths, to the higher one-hundred-thousandth,
A/5
where
A      is the rate of duty applicable under section 1 of Schedule 1 for each five cigarettes;
(b) in dollars per tobacco stick, the rate of duty applicable under section 2 of Schedule 1 per tobacco stick; and
(c) in dollars per 50 grams, or fraction of 50 grams, contained in any package of manufactured tobacco other than cigarettes or tobacco sticks, the rate of duty applicable under section 3 of Schedule 1 per 50 grams.
2. Special duty on traveller’s tobacco:
(a) in dollars per cigarette, the rate determined by the formula, rounded to the nearest one-hundred-thousandth, or, if the rate is equidistant from two consecutive one-hundred-thousandths, to the higher one-hundred-thousandth,
A/5
where
A      is the rate of duty applicable under section 1 of Schedule 1 for each five cigarettes;
(b) in dollars per tobacco stick, the rate of duty applicable under section 2 of Schedule 1 per tobacco stick; and
(c) in dollars per 50 grams, or fraction of 50 grams, contained in any package of manufactured tobacco other than cigarettes or tobacco sticks, the rate of duty applicable under section 3 of Schedule 1 per 50 grams.
3. Special duty on unstamped tobacco prod-ucts:
(a) in dollars per cigarette, the rate determined by the formula, rounded to the nearest one-hundred-thousandth, or, if the rate is equidistant from two consecutive one-hundred-thousandths, to the higher one-hundred-thousandth,
A/5
where
A      is the rate of duty applicable under section 1 of Schedule 1 for each five cigarettes;
(b) in dollars per tobacco stick, the rate of duty applicable under section 2 of Schedule 1 per tobacco stick; and
(c) in dollars per kilogram of tobacco products other than cigarettes or tobacco sticks, the rate determined by the formula, rounded to the nearest one-hundred-thousandth, or, if the rate is equidistant from two consecutive one-hundred-thousandths, to the higher one-hundred-thousandth,
A × 20
where
A      is the rate of duty applicable under section 3 of Schedule 1 per 50 grams of manufactured tobacco.
(2) Schedule 3 to the Act is amended by replacing the references after the heading “SCHEDULE 3” with the following:
(Sections 53, 54, 56, 58.2 and 240)
(3) Subsection (1) is deemed to have come into force on February 12, 2014.
(4) Subsection (2) comes into force on December 1, 2019.
Application
82. For the purposes of applying the provisions of the Customs Act that provide for the payment of, or the liability to pay, interest in respect of any amount, the amount is to be determined and interest is to be computed on it as though paragraphs 1(a), 2(a), 3(a) and 4(a) of Schedule 1 of the Excise Act, 2001, as enacted by section 79, subparagraphs (a)(i) and (b)(i) of Schedule 2 of that Act, as enacted by section 80, and section 81 had come into force on February 12, 2014.
R.S., c. E-15
Excise Tax Act
R.S., c. 7 (2nd Supp.), s. 34(1)
83. (1) Subsection 68.16(3) of the Excise Tax Act is replaced by the following:
Presumption
(3) Any payment made to a person referred to in paragraph (1)(i) or (2)(e) shall, for the purposes of subsection (4), paragraph 97.1(1)(b) and sections 98 to 101, be deemed to have been made to the purchaser.
(2) Subsection (1) comes into force on the day after the day on which this Act receives royal assent.
2006, c. 4, s. 130(1)
84. (1) Subsection 79.03(4) of the Act is replaced by the following:
Interest and penalty amounts of $25 or less
(4) If, at any time, a person pays an amount not less than the total of all amounts, other than interest and penalty under subsection 7(1.1) or 68.5(9.1) or section 95.1 or 95.2, owing at that time to Her Majesty in right of Canada under this Act for a reporting period of the person and the total amount of interest and penalty payable by the person under this Act for that reporting period is not more than $25.00, the Minister may cancel the interest and penalty.
(2) Subsection (1) comes into force on the day after the day on which this Act receives royal assent.
85. (1) The Act is amended by adding the following after section 95.1:
False statements or omissions
95.2 (1) Every person who knowingly, or under circumstances amounting to gross negligence, makes or participates in, assents to or acquiesces in the making of, a false statement or omission in a return, application, form, certificate, statement, invoice, answer or report (each of which is in this section referred to as a “return”) made in respect of a reporting period is liable to a penalty of the greater of $250 and 25% of the total of
(a) if the false statement or omission is relevant to the determination of an amount of tax payable by the person, the amount, if any, by which
(i) that tax payable
exceeds
(ii) the amount that would be the tax payable by the person if the tax were determined on the basis of the information provided in the return, and
(b) if the false statement or omission is relevant to the determination of a refund, rebate or any other amount payable to the person (each of which is in this section referred to as a “rebate”) under this Act, the amount, if any, by which
(i) the amount that would be the rebate payable to the person if the rebate were determined on the basis of the information provided in the return
exceeds
(ii) the amount of the rebate payable to the person.
Burden of proof in respect of penalties
(2) If, in an appeal under this Act, a penalty assessed by the Minister under this section is in issue, the burden of establishing the facts justifying the assessment of the penalty is on the Minister.
(2) Subsection (1) applies to any return filed by a person after the day on which this Act receives royal assent.
R.S., c. 7 (2nd Supp.), s. 44(1); R.S., c. 12 (4th Supp.), s. 36(1)
86. (1) Section 97 of the Act is replaced by the following:
Failing to file return
97. Every person required, by or pursuant to any Part except Part I, to file a return, who fails to file the return within the time it is required to be filed, is guilty of an offence and liable to a fine of not less than $10 and not more than $100.
Offences for false statements
97.1 (1) Every person commits an offence who
(a) makes, or participates in, assents to or acquiesces in the making of, a false or deceptive statement in a return, application, form, certificate, statement, invoice, answer or report filed or made as required by or under this Act or the regulations made under this Act;
(b) for the purpose of evading payment or remittance of any tax under this Act, or obtaining a refund, rebate or other amount to which the person is not entitled under this Act,
(i) destroys, alters, mutilates, conceals or otherwise disposes of any records of a person, or
(ii) makes, or assents to or acquiesces in the making of, a false or deceptive entry, or omits, or assents to or acquiesces in the omission, to enter a material particular in the records of a person;
(c) wilfully, in any manner, evades or attempts to evade compliance with this Act or payment or remittance of tax or any other amount imposed under this Act;
(d) wilfully, in any manner, obtains or attempts to obtain a refund, rebate or other amount to which the person is not entitled under this Act; or
(e) conspires with any person to commit an offence described in any of paragraphs (a) to (d).
Prosecution on summary conviction
(2) Every person who commits an offence under subsection (1) is guilty of an offence punishable on summary conviction and, in addition to any penalty otherwise provided, is liable to
(a) a fine of not less than 50%, and not more than 200%, of the amount of the tax that was sought to be evaded, or of the refund, rebate or other amount sought, or, if the amount that was sought to be evaded cannot be ascertained, a fine of not less than $1,000 and not more than $25,000; or
(b) both a fine referred to in paragraph (a) and imprisonment for a term not exceeding two years.
Prosecution on indictment
(3) Every person who is charged with an offence described in subsection (1) may, at the election of the Attorney General of Canada, be prosecuted on indictment and, if convicted, is, in addition to any penalty otherwise provided, liable to
(a) a fine of not less than 100%, and not more than 200%, of the amount of the tax that was sought to be evaded, or of the refund, rebate or other amount sought, or, if the amount that was sought to be evaded cannot be ascertained, a fine of not less than $2,000 and not more than $25,000; or
(b) both a fine referred to in paragraph (a) and imprisonment for a term not exceeding five years.
Penalty on conviction
(4) A person that is convicted of an offence under subsection (2) or (3) is not liable to pay a penalty imposed under subsection 79(5) or section 95.1, 95.2 or 109 or under a regulation made under this Act for the same evasion or attempt unless a notice of assessment for that penalty was issued before the information or complaint giving rise to the conviction was laid or made.
Stay of appeal
(5) If, in any appeal under this Act, substantially the same facts are at issue as those that are at issue in a prosecution under this section, the Minister may file a stay of proceedings with the Federal Court or may file a request for a postponement or adjournment with the Tribunal, as the case may be, and, on doing so, the proceedings before the Federal Court are stayed or the proceedings before the Tribunal are postponed or adjourned, as the case may be, pending final determination of the outcome of the prosecution.
(2) Subsection (1) comes into force on the day after the day on which this Act receives royal assent.
87. (1) The Act is amended by adding the following after section 98.1:
Electronic funds transfer
98.2 For greater certainty, information obtained by the Minister under Part XV.1 of the Income Tax Act may be used for the purposes of this Act.
(2) Subsection (1) comes into force on January 1, 2015.
88. (1) Section 102 of the Act is repealed.
(2) Subsection (1) comes into force on the day after the day on which this Act receives royal assent.
89. (1) Section 108 of the Act is repealed.
(2) Subsection (1) comes into force on the day after the day on which this Act receives royal assent.
2002, c. 9, s. 5
Air Travellers Security Charge Act
90. (1) The Air Travellers Security Charge Act is amended by adding the following after section 37:
Electronic funds transfer
37.1 For greater certainty, information obtained by the Minister under Part XV.1 of the Income Tax Act may be used for the purposes of this Act.
(2) Subsection (1) comes into force on January 1, 2015.
PART 4
1997, c. 36
CUSTOMS TARIFF
Amendments to the Act
91. The expression “Supplementary Note.” in Chapter 16 of the List of Tariff Provisions set out in the schedule to the Customs Tariff is replaced by the following:
      Supplementary Notes.
92. Chapter 16 of the List of Tariff Provisions set out in the schedule to the Act is amended by adding the following after Supplementary Note 1:
2.       Where the components of food preparations of a type used commercially in the preparation of fresh food products for direct sale to a consumer include cheese, those components are to be classified separately, in their respective headings, regardless of their packaging.
93. Tariff item Nos. 8905.20.10 and 8905.90.10 in the List of Tariff Provisions set out in the schedule to the Act are repealed.
94. Tariff item No. 9809.00.00 in the List of Tariff Provisions set out in the schedule to the Act is repealed.
95. The Description of Goods of tariff item No. 9833.00.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by adding a reference to “the Governor General,” before the reference to “the Prime Minister of Canada”.
96. The List of Tariff Provisions set out in the schedule to the Act is amended by adding, in numerical order, the tariff provisions set out in Schedule 1 to this Act.
97. The List of Intermediate and Final Rates for Tariff Items of the “F” Staging Category set out in the schedule to the Act is amended by adding, in numerical order, the tariff items set out in Schedule 2 to this Act.
Coming into Force
November 29, 2013
98. (1) Sections 91 and 92 are deemed to have come into force on November 29, 2013.
May 5, 2014
(2) Sections 93, 96 and 97 are deemed to have come into force on May 5, 2014.
PART 5
CANADA–UNITED STATES ENHANCED TAX INFORMATION EXCHANGE AGREEMENT IMPLEMENTATION ACT
Enactment of Act
Enactment
99. The Canada–United States Enhanced Tax Information Exchange Agreement Implementation Act, whose text is as follows and whose schedule is set out in Schedule 3 to this Act, is enacted:
An Act to implement the Canada–United States Enhanced Tax Information Exchange Agreement
Short title
1. This Act may be cited as the Canada–United States Enhanced Tax Information Exchange Agreement Implementation Act.
Definition of “Agreement”
2. In this Act, “Agreement” means the Agreement between the Government of Canada and the Government of the United States of America set out in the schedule, as amended from time to time.
Agreement approved
3. The Agreement is approved and has the force of law in Canada during the period that the Agreement, by its terms, is in force.
Inconsistent laws — general rule
4. (1) Subject to subsection (2), in the event of any inconsistency between the provisions of this Act or the Agreement and the provisions of any other law (other than Part XVIII of the Income Tax Act), the provisions of this Act and the Agreement prevail to the extent of the inconsistency.
Inconsistent laws — exception
(2) In the event of any inconsistency between the provisions of the Agreement and the provisions of the Income Tax Conventions Interpretation Act, the provisions of that Act prevail to the extent of the inconsistency.
Regulations
5. The Minister of National Revenue may make any regulations that are necessary for carrying out the Agreement or for giving effect to any of its provisions.
Entry into force of Agreement
6. (1) The Minister of Finance must cause a notice of the day on which the Agreement enters into force to be published in the Canada Gazette within 60 days after that day.
Amending instrument
(2) The Minister of Finance must cause a notice of the day on which any instrument amending the Agreement enters into force to be published, together with a copy of the instrument, in the Canada Gazette within 60 days after that day.
Termination
(3) The Minister of Finance must cause a notice of the day on which the Agreement is terminated to be published in the Canada Gazette within 60 days after that day.
R.S., c. 1 (5th Supp.)
Amendments to the Income Tax Act
100. (1) The portion of subsection 162(6) of the Income Tax Act before paragraph (b) is replaced by the following:
Failure to provide identification number
(6) Every person or partnership who fails to provide on request their Social Insurance Number, their business number or their U.S. federal taxpayer identifying number to a person required under this Act or a regulation to make an information return requiring the number is liable to a penalty of $100 for each such failure, unless
(a) an application for the assignment of the number is made within 15 days (or, in the case of a U.S. federal taxpayer identifying number, 90 days) after the request was received; and
(2) Subsection (1) comes into force on the day on which the agreement set out in the schedule to the Canada–United States Enhanced Tax Information Exchange Agreement Implementation Act enters into force.
101. (1) The Act is amended by adding the following after Part XVII:
PART XVIII
ENHANCED INTERNATIONAL INFORMATION REPORTING
Definitions
263. (1) The following definitions apply in this Part.
“agreement”
« accord »
“agreement” has the same meaning as in section 2 of the Canada–United States Enhanced Tax Information Exchange Agreement Implementation Act.
“electronic filing”
« transmission électronique »
“electronic filing” means using electronic media in a manner specified by the Minister.
“listed financial institution”
« institution financière particulière »
“listed financial institution” means a financial institution that is
(a) an authorized foreign bank within the meaning of section 2 of the Bank Act in respect of its business in Canada, or a bank to which that Act applies;
(b) a cooperative credit society, a savings and credit union or a caisse populaire regulated by a provincial Act;
(c) an association regulated by the Cooperative Credit Associations Act;
(d) a central cooperative credit society, as defined in section 2 of the Cooperative Credit Associations Act, or a credit union central or a federation of credit unions or caisses populaires that is regulated by a provincial Act other than one enacted by the legislature of Quebec;
(e) a financial services cooperative regulated by An Act respecting financial services cooperatives, R.S.Q., c. C-67.3, or An Act respecting the Mouvement Desjardins, S.Q. 2000, c. 77;
(f) a life company or a foreign life company to which the Insurance Companies Act applies or a life insurance company regulated by a provincial Act;
(g) a company to which the Trust and Loan Companies Act applies;
(h) a trust company regulated by a provincial Act;
(i) a loan company regulated by a provincial Act;
(j) an entity authorized under provincial legislation to engage in the business of dealing in securities or any other financial instruments, or to provide portfolio management, investment advising, fund administration, or fund management, services;
(k) an entity that is represented or promoted to the public as a collective investment vehicle, mutual fund, exchange traded fund, private equity fund, hedge fund, venture capital fund, leveraged buyout fund or similar investment vehicle that is established to invest or trade in financial assets and that is managed by an entity referred to in paragraph (j);
(l) an entity that is a clearing house or clearing agency; or
(m) a department or an agent of Her Majesty in right of Canada or of a province that is engaged in the business of accepting deposit liabilities.
“non-reporting Canadian financial institution”
« institution financière canadienne non déclarante »
“non-reporting Canadian financial institution” means any Canadian financial institution or other entity resident in Canada that
(a) is described in any of paragraphs C, D and G to J of section III of Annex II to the agreement;
(b) makes a reasonable determination that it is described in any of paragraphs A, B, E and F of section III of Annex II to the agreement;
(c) qualifies as an exempt beneficial owner under relevant U.S. Treasury Regulations in effect on the date of signature of the agreement; or
(d) makes a reasonable determination that it qualifies as a deemed-compliant FFI under relevant U.S. Treasury Regulations in effect on the date of signature of the agreement.
“U.S. reportable account”
« compte déclarable américain »
“U.S. reportable account” means a financial account that, under the agreement, is to be treated as a U.S. reportable account.
Financial institution
(2) For the purposes of this Part, “Canadian financial institution” and “reporting Canadian financial institution” each have the meaning that would be assigned by the agreement, and the definition “non-reporting Canadian financial institution” in subsection (1) has the meaning that would be assigned by that subsection, if the definition “Financial Institution” in subparagraph 1(g) of Article 1 of the agreement were read as follows:
g) The term “Financial Institution” means any Entity that is a Custodial Institution, a Depository Institution, an Investment Entity or a Specified Insurance Company, and that is a listed financial institution within the meaning of Part XVIII of the Income Tax Act.
Financial account
(3) For the purposes of this Part, the agreement is to be read as if the definition “Financial Account” in subparagraph 1(s) of Article 1 of the agreement included the following subparagraph after subparagraph (1):
(1.1) an account that is a client name account maintained by a person or entity that is authorized under provincial legislation to engage in the business of dealing in securities or any other financial instruments, or to provide portfolio management or investment advising services.
Identification number
(4) For the purposes of this Part, a reference in the agreement to “Canadian TIN” or “taxpayer identification number” is to be read as including a reference to Social Insurance Number.
Term defined in agreement
(5) In this Part, a term has the meaning that is defined in, or assigned by, the agreement unless the term is defined in this Part.
Amending instrument
(6) No person shall be liable for a failure to comply with a duty or obligation imposed by this Act that results from an amendment to the agreement unless at the date of the alleged failure,
(a) the text of the instrument that effected the amendment had been published in the Canada Gazette; or
(b) reasonable steps had been taken to bring the purport of the amendment to the notice of those persons likely to be affected by it.
Designation of account
264. (1) Subject to subsection (2), a reporting Canadian financial institution may designate a financial account to not be a U.S. reportable account for a calendar year if the account is
(a) a preexisting individual account described in paragraph A of section II of Annex I to the agreement;
(b) a new individual account described in paragraph A of section III of Annex I to the agreement;
(c) a preexisting entity account described in paragraph A of section IV of Annex I to the agreement; or
(d) a new entity account described in paragraph A of section V of Annex I to the agreement.
U.S. reportable account
(2) A reporting Canadian financial institution may not designate a financial account for a calendar year unless the account is part of a clearly identifiable group of accounts all of which are designated for the year.
Applicable rules
(3) The rules in paragraph C of section VI of Annex I to the agreement apply in determining whether a financial account is described in any of paragraphs (1)(a) to (d).
Identification obligation — financial accounts
265. (1) Every reporting Canadian financial institution shall establish, maintain and document the due diligence procedures set out in subsections (2) and (3).
Due diligence — general
(2) Every reporting Canadian financial institution shall have the following due diligence procedures:
(a) for preexisting individual accounts that are lower value accounts, other than accounts described in paragraph A of section II of Annex I to the agreement, the procedures described in paragraphs B and C of that section, subject to paragraph F of that section;
(b) for preexisting individual accounts that are high value accounts, other than accounts described in paragraph A of section II of Annex I to the agreement, the procedures described in paragraphs D and E of that section, subject to paragraph F of that section;
(c) for new individual accounts, other than accounts described in paragraph A of section III of Annex I to the agreement,
(i) the procedures described in paragraph B of section III of Annex I to the agreement, or
(ii) in respect of a clearly identifiable group of accounts, the procedures that would be applicable if the accounts were preexisting individual accounts that were lower value accounts, with such modifications as the circumstances require, including procedures to review any documentary evidence obtained by the institution in connection with the opening of the accounts for the U.S. indicia described in subparagraph B(1) of section II of Annex I to the agreement;
(d) for preexisting entity accounts, other than accounts described in paragraph A of section IV of Annex I to the agreement, the procedures described in paragraphs D and E of that section; and
(e) for new entity accounts, other than accounts described in paragraph A of section V of Annex I to the agreement, the procedures described in paragraphs B to E of that section.
Due diligence — no designation
(3) If a reporting Canadian financial institution does not designate a financial account under subsection 264(1) for a calendar year, the institution shall have the following due diligence procedures with respect to the account:
(a) if the account is a preexisting individual account described in paragraph A of section II of Annex I to the agreement, the procedures described in paragraphs B and C of that section, subject to paragraph F of that section;
(b) if the account is a new individual account described in paragraph A of section III of Annex I to the agreement,
(i) the procedures described in paragraph B of section III of Annex I to the agreement, or
(ii) in respect of an account that is part of a clearly identifiable group of accounts, the procedures that would be applicable if the account were a preexisting individual account that was a lower value account, with such modifications as the circumstances require, including procedures to review any documentary evidence obtained by the institution in connection with the opening of the account for the U.S. indicia described in subparagraph B(1) of section II of Annex I to the agreement;
(c) if the account is a preexisting entity account described in paragraph A of section IV of Annex I to the agreement, the procedures described in paragraphs D and E of that section; and
(d) if the account is a new entity account described in paragraph A of section V of Annex I to the agreement, the procedures described in paragraphs B to E of that section.
Rules and definitions
(4) For the purposes of subsections (2) and (3), subparagraphs B(1) to (3) of section I, and section VI, of Annex I to the agreement apply except that
(a) in applying paragraph C of that section VI, an account balance that has a negative value is deemed to be nil; and
(b) the definition “NFFE” in subparagraph B(2) of that section VI is to be read as follows:
2. NFFE
An “NFFE” means any Non-U.S. Entity that is not an FFI as defined in relevant U.S. Treasury Regulations or is an Entity described in subparagraph B(4)(j) of this section, and also includes any Non-U.S. Entity
a) that is resident in Canada and is not a listed financial institution within the meaning of Part XVIII of the Income Tax Act; or
b) that is resident in a Partner Jurisdiction other than Canada and is not a Financial Institution.
U.S. indicia
(5) For the purposes of paragraphs (2)(a) and (b), subparagraph (2)(c)(ii), paragraph (3)(a) and subparagraph (3)(b)(ii), subparagraph B(3) of section II of Annex I to the agreement is to be read as follows:
3. If any of the U.S indicia listed in subparagraph B(1) of this section are discovered in the electronic search, or if there is a change in circumstances that results in one or more U.S. indicia being associated with the account, then the Reporting Canadian Financial Institution must seek to obtain or review the information described in the portion of subparagraph B(4) of this section that is relevant in the circumstances and must treat the account as a U.S. Reportable Account unless one of the exceptions in subparagraph B(4) applies with respect to that account.
Financial institution
(6) For the purpose of applying the procedures referred to in paragraphs (2)(d) and (e) and (3)(c) and (d) to a financial account of an account holder that is resident in Canada, the definition “Financial Institution” in subparagraph 1(g) of Article 1 of the agreement is to be read as follows:
g) The term “Financial Institution” means any Entity that is a Custodial Institution, a Depository Institution, an Investment Entity or a Specified Insurance Company, and that is a listed financial institution within the meaning of Part XVIII of the Income Tax Act.
Dealer accounts
(7) Subsection (8) applies to a reporting Canadian financial institution in respect of a client name account maintained by the institution if
(a) property recorded in the account is also recorded in a financial account (in this subsection and subsection (8) referred to as the “related account”) maintained by a financial institution (in this subsection and subsection (8) referred to as the “dealer”) that is authorized under provincial legislation to engage in the business of dealing in securities or any other financial instrument, or to provide portfolio management or investment advising services; and
(b) the dealer has advised the institution whether the related account is a U.S. reportable account.
However, subsection (8) does not apply if it can reasonably be concluded by the institution that the dealer has failed to comply with its obligations under this section.
Dealer accounts
(8) If this subsection applies to a reporting Canadian financial institution in respect of a client name account,
(a) subsections (1) to (4) do not apply to the institution in respect of the account; and
(b) the institution shall rely on the determination of the dealer in respect of the related account in determining whether the account is a U.S. reportable account.
Reporting — U.S. reportable accounts
266. (1) Every reporting Canadian financial institution shall file with the Minister, before May 2 of each calendar year, an information return in prescribed form relating to each U.S. reportable account maintained by the institution at any time during the immediately preceding calendar year and after June 29, 2014.
Reporting — nonparticipating financial institutions
(2) Every reporting Canadian financial institution shall file with the Minister, before May 2 of each calendar year, an information return in prescribed form relating to payments, to a nonparticipating financial institution that is the holder of a financial account maintained by the reporting Canadian financial institution, during the immediately preceding calendar year if the immediately preceding year is 2015 or 2016.
Filing of return
(3) An information return required under subsection (1) or (2) shall be filed by way of electronic filing.
Record keeping
267. (1) Every reporting Canadian financial institution shall keep, at the institution’s place of business or at such other place as may be designated by the Minister, records that the institution obtains or creates for the purpose of complying with this Part, including self-certifications and records of documentary evidence.
Form of records
(2) Every reporting Canadian financial institution required by this Part to keep records that does so electronically shall retain them in an electronically readable format for the retention period referred to in subsection (3).
Retention of records
(3) Every reporting Canadian financial institution that is required to keep, obtain, or create records under this Part shall retain those records for a period of at least six years following
(a) in the case of a self-certification, the last day on which a related financial account is open; and
(b) in any other case, the end of the last calendar year in respect of which the record is relevant.
Anti-avoidance
268. If a person enters into an arrangement or engages in a practice, the primary purpose of which can reasonably be considered to be to avoid an obligation under this Part, the person is subject to the obligation as if the person had not entered into the arrangement or engaged in the practice.
Deemed-compliant FFI
269. If a Canadian financial institution makes a reasonable determination that it is to be treated as a deemed-compliant FFI under Annex II to the agreement, this Part applies to the institution, with such modifications as the circumstances require, to the extent that the agreement imposes due diligence and reporting obligations on the institution.
(2) Subsection (1) comes into force on the day on which the agreement set out in the schedule to the Canada–United States Enhanced Tax Information Exchange Agreement Implementation Act enters into force.
PART 6
VARIOUS MEASURES
Division 1
Payments — Veterans Affairs
Earnings loss benefit
102. (1) A person who received an earnings loss benefit under subsection 18(1) or 22(1) of the Canadian Forces Members and Veterans Re-establishment and Compensation Act for the period that began on May 29, 2012 and ended on September 30, 2012 — or who would have been eligible to receive that benefit if the disability pension paid to the person under the Pension Act for that period had not been taken into account — is entitled to receive an amount determined in accord-ance with the formula
A – B – C
where
A      is the amount of the earnings loss benefit that would have been paid to the person for that period if the disability pension paid to the person under the Pension Act for that period had not been taken into account;
B      is the amount of the earnings loss benefit that was paid to the person for that period; and
C      is the amount of long-term disability benefits that was paid or is payable under the Service Income Security Insurance Plan Long Term Disability to the person for that period as a result of the settlement order in Manuge v. Canada that was approved by the Federal Court on April 15, 2013.
Payment
(2) Any amount paid or payable under subsection (1) is deemed to be an earnings loss benefit paid or payable under the Canadian Forces Members and Veterans Re-establishment and Compensation Act.
Canadian Forces income support benefit
103. (1) A person who received a Canadian Forces income support benefit un-der any of sections 27 to 31 of the Cana-dian Forces Members and Veterans Re-establishment and Compensation Act for the period that began on May 29, 2012 and ended on September 30, 2012 — or who would have been eligible to receive that benefit if the disability pension paid to the person under the Pension Act for that period had not been taken into account — is entitled to receive an amount determined in accordance with the formula
A – B – C
where
A      is the amount of the Canadian Forces income support benefit that would have been paid to the person for that period if the disability pension paid to the person under the Pension Act for that period had not been taken into account;
B      is the amount of the Canadian Forces income support benefit that was paid to the person for that period; and
C      is the amount of long-term disability benefits that was paid or is payable under the Service Income Security Insurance Plan Long Term Disability to the person for that period as a result of the settlement order in Manuge v. Canada that was approved by the Federal Court on April 15, 2013.
Payment
(2) Any amount paid or payable under subsection (1) is deemed to be a Canadian Forces income support benefit paid or payable under the Canadian Forces Members and Veterans Re-establishment and Compensation Act.
War veterans allowance
104. (1) A person who received an allowance under subsection 4(1) of the War Veterans Allowance Act for the period that began on May 29, 2012 and ended on September 30, 2013 — or who would have been eligible to receive that allowance if the disability pension paid to the person under the Pension Act or any similar or equivalent law of the country in whose forces the veteran served for that period had not been taken into account — is entitled to receive an amount determined in accordance with the formula
A – B
where
A      is the amount of the allowance that would have been paid to the person for that period if the disability pension paid to or in respect of the veteran under the Pension Act or any similar or equivalent law of the country in whose forces the veteran served for that period had not been taken into account; and
B      is the amount of the allowance that was paid to the person for that period.
Payment
(2) Any amount paid or payable under subsection (1) is deemed to be an allowance paid or payable under the War Veterans Allowance Act.
Civilian war-related benefits
105. (1) A person who received a benefit under the Civilian War-related Benefits Act for the period that began on May 29, 2012 and ended on September 30, 2013 — or who would have been eligible to receive that benefit if the disability pension paid to the person under that Act for that period had not been taken into account — is entitled to receive an amount determined in accordance with the formula
A – B
where
A      is the amount of the benefit that would have been paid to the person for that period if the disability pension paid to the person under the Civilian War-related Benefits Act for that period had not been taken into account; and
B      is the amount of the benefit that was paid to the person for that period.
Payment
(2) Any amount paid or payable under subsection (1) is deemed to be a benefit paid or payable under the Civilian War-related Benefits Act.
Consolidated Revenue Fund
106. There shall be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Veterans Affairs, the amounts determined under sections 102 to 105.
Definitions
107. (1) The following definitions apply in this section.
“common-law partner”
« conjoint de fait »
“common-law partner” means a person who is cohabiting with another person in a conjugal relationship and has done so for a period of at least one year.
“dependent child”
« enfant à charge »
“dependent child”
(a) in the case of a payment made under section 102 or 103, has the same meaning as in subsection 2(1) of the Canadian Forces Members and Veterans Re-establishment and Compensation Act; and
(b) in the case of a payment made under section 104 or 105, has the same meaning as in subsection 2(1) of the War Veterans Allowance Act.
“survivor”
« survivant »
“survivor”, in relation to a deceased person, means
(a) their spouse who was, at the time of the person’s death, residing with the person; or
(b) the person who was, at the time of the person’s death, the person’s common-law partner.
Couples living apart
(2) A spouse is deemed to be residing with the person and a common-law partner does not cease to be the person’s common-law partner, if it is established that they are living apart by reason only of
(a) one or both of them having to reside in a health care facility;
(b) circumstances of a temporary nature; or
(c) other circumstances that are not within the control of the person or the spouse or common-law partner.
Deceased person
(3) If a person who is entitled to be paid an amount under any of sections 102 to 105 dies before the amount is paid, the following rules apply:
(a) if, at the time of death, there is a survivor, the survivor is entitled to 100% of the amount;
(b) if, at the time of death, there is no survivor, but there are one or more dependent children, each of those children is entitled to the amount obtained by dividing the amount to be paid by the number of those dependent children; and
(c) if, at the time of death, there is no survivor or dependent child, no amount is to be paid.
Division 2
Canada Deposit Insurance Corporation
R.S., c. B-2
Bank of Canada Act
108. Section 18 of the Bank of Canada Act is amended by adding the following after paragraph (m):
(m.1) act as a custodian of the financial assets of the Canada Deposit Insurance Corporation;
R.S., c. C-3
Canada Deposit Insurance Corporation Act
109. The Canada Deposit Insurance Corporation Act is amended by adding the following after section 41:
Interest may be paid
42. The Bank of Canada may pay interest on any money that the Corporation deposits with it.
Division 3
Regulatory Cooperation Council Initiative on Workplace Chemicals
R.S., c. H-3
Amendments to the Hazardous Products Act
110. The long title of the Hazardous Products Act is replaced by the following:
An Act to prohibit the sale and importation of hazardous products that are intended for use, handling or storage in a work place
2010, c. 21, s. 72(2)
111. (1) The definition ““controlled prod- uct” or “hazardous product”” in section 2 of the Act is repealed.
R.S., c. 24 (3rd Supp.), s. 1
(2) The definitions “analyst”, “inspector” and “sell” in section 2 of the Act are replaced by the following:
“analyst”
« analyste »
“analyst” means an individual designated as an analyst under subsection 21(1);
“inspector”
« inspecteur »
“inspector” means an individual designated as an inspector under subsection 21(1);
“sell”
« vendre »
“sell” includes
(a) offer for sale or distribution, expose for sale or distribution, have in possession for sale or distribution or distribute — whether for consideration or not — to one or more recipients, and
(b) make any transfer of possession that creates a bailment or, in Quebec, make any transfer of possession of a movable, for a specific purpose, without transferring ownership, and with the obligation to deliver the movable to a specified person or to return it, such as a transfer by means of a deposit, a lease, a pledge, a loan for use or a contract of carriage;
(3) Section 2 of the Act is amended by adding the following in alphabetical order:
“container”
« contenant »
“container” includes a bag, barrel, bottle, box, can, cylinder, drum or similar package or receptacle but does not include a storage tank;
“document”
« document »
“document” means anything on which information that is capable of being understood by an individual or being read by a computer or other device is recorded or marked;
“hazardous product”
« produit dangereux »
“hazardous product” means any product, mixture, material or substance that is classified in accordance with the regulations made under subsection 15(1) in a category or subcategory of a hazard class listed in Schedule 2;
“label”
« étiquette »
“label” means a group of written, printed or graphic information elements that relate to a hazardous product, which group is designed to be affixed to, printed on or attached to the hazardous product or the container in which the hazardous product is packaged;
“manufactured article”
« article manufacturé »
“manufactured article” means any article that is formed to a specific shape or design during manufacture, the intended use of which when in that form is dependent in whole or in part on its shape or design, and that, when being installed, if the intended use of the article requires it to be installed, and under normal conditions of use, will not release or otherwise cause an individual to be exposed to a hazardous product;
“mixture”
« mélange »
“mixture” means a combination of, or a solution that is composed of, two or more ingredients that, when they are combined, do not react with each other, but excludes any such combination or solution that is a substance;
“person”
« personne »
“person” means an individual or an organization as defined in section 2 of the Criminal Code;
“prescribed”
Version anglaise seulement
“prescribed”, for the purposes of Part II, means prescribed by regulations made under subsection 15(1), and, for the purposes of Part III, means prescribed by regulations made under section 27;
“review officer”
« réviseur »
“review officer” means an individual designated as a review officer under section 26.2;
“safety data sheet”
« fiche de données de sécurité »
“safety data sheet” means a document that contains, under the headings that, by virtue of the regulations made under subsection 15(1), are required to appear in the document, information about a hazardous product, including information related to the hazards associated with any use, handling or storage of the hazardous product in a work place;
“substance”
« substance »
“substance” means any chemical element or chemical compound — that is in its natural state or that is obtained by a production process — whether alone or together with
(a) any additive that is necessary to preserve the stability of the chemical element or chemical compound,
(b) any solvent that is necessary to preserve the stability or composition of the chemical element or chemical compound, or
(c) any impurity that is derived from the production process;
“supplier”
« fournisseur »
“supplier” means a person who, in the course of business, sells or imports a hazardous product;
“work place”
« lieu de travail »
“work place” has the meaning assigned by regulations made under subsection 15(1).
R.S., c. 24 (3rd Supp.), s. 1; 1999, c. 31, s. 127(E)
112. Section 11 of the Act and the headings before it are replaced by the following:
PART II
HAZARDOUS PRODUCTS
R.S., c. 24 (3rd Supp.), s. 1; 2002, c. 28, s. 86
113. (1) Paragraphs 12(a) to (c) of the Act are repealed.
R.S., c. 24 (3rd Supp.), s. 1
(2) Paragraph 12(e) of the Act is replaced by the following:
(e) hazardous waste, being a hazardous product that is sold for recycling or recovery or is intended for disposal;
R.S., c. 24 (3rd Supp.), s. 1; 2010, c. 21, s. 74
(3) Paragraphs 12(f) and (g) of the Act are repealed.
(4) Section 12 of the Act is amended by striking out “or” at the end of paragraph (h), by adding “or” at the end of paragraph (i) and by adding the following after paragraph (i):
(j) anything listed in Schedule 1.
R.S., c. 24 (3rd Supp.), s. 1; 1999, c. 31, s. 128(F)
114. Sections 13 and 14 of the Act are replaced by the following:
Prohibition re sale
13. (1) Subject to the Hazardous Materials Information Review Act, no supplier shall sell a hazardous product that is intended for use, handling or storage in a work place in Canada unless
(a) the supplier has in their possession a safety data sheet for the hazardous product that meets the requirements set out in the regulations made under subsection 15(1);
(a.1) on the sale of the hazardous product to any person or government, the supplier provides to the person or government the safety data sheet referred to in paragraph (a), or causes it to be provided, if on that sale the person or government acquires possession or ownership of that hazardous product; and
(b) the hazardous product or the container in which the hazardous product is packaged has a label that meets the requirements set out in the regulations made under subsection 15(1) affixed to it, printed on it or attached to it in a manner that meets the requirements set out in the regulations made under that subsection.
Definition of “government”
(2) In this section, “government” means any of the following or their institutions:
(a) the federal government;
(b) a corporation named in Schedule III to the Financial Administration Act;
(c) a provincial government or a public body established under an Act of the legislature of a province; and
(d) an aboriginal government as defined in subsection 13(3) of the Access to Information Act.
Prohibition re importation
14. Subject to the Hazardous Materials Information Review Act, no supplier shall import a hazardous product that is intended for use, handling or storage in a work place in Canada unless
(a) the supplier obtains or prepares, on or before the importation of the hazardous product, a safety data sheet for the hazardous product that meets the requirements set out in the regulations made under subsection 15(1); and
(b) the hazardous product or the container in which the hazardous product is packaged has a label that meets the requirements set out in the regulations made under subsection 15(1) affixed to it, printed on it or attached to it in a manner that meets the requirements set out in the regulations made under that subsection.
Prohibition re sale
14.1 (1) Despite section 13, no supplier shall sell a hazardous product that contains asbestos and is intended for use, handling or storage in a work place in Canada unless, subject to the Hazardous Materials Information Review Act, the supplier complies with the requirements set out in paragraphs 13(1)(a) to (b) and the hazardous product meets the requirements set out in the regulations made under subsection 15(2).
Prohibition re importation
(2) Despite section 14, no supplier shall import a hazardous product that contains asbestos and is intended for use, handling or storage in a work place in Canada unless, subject to the Hazardous Materials Information Review Act, the supplier complies with the requirements set out in paragraphs 14(a) and (b) and the hazardous product meets the requirements set out in the regulations made under subsection 15(2).
False information — hazardous product or container
14.2 (1) No supplier shall sell or import a hazardous product that is intended for use, handling or storage in a work place in Canada if the hazardous product or the container in which the hazardous product is packaged has affixed to, printed on or attached to it information about the hazardous product that is false, misleading or likely to create an erroneous impression, with respect to the information that is required to be included in a label or safety data sheet for that hazardous product in order for the supplier to comply with the requirements set out in paragraphs 13(1)(a) to (b) or 14(a) and (b), as the case may be.
Safety data sheet — sale
(2) No supplier shall sell a hazardous product that is intended for use, handling or storage in a work place in Canada if the safety data sheet for the hazardous product that is in their possession in order to comply with the requirement set out in paragraph 13(1)(a), or that they provide or cause to be provided in order to comply with the requirement set out in paragraph 13(1)(a.1), is false, misleading or likely to create an erroneous impression, with respect to the information that is required to be included in a label or safety data sheet for that hazardous product in order for the supplier to meet the requirements set out in paragraphs 13(1)(a) to (b).
Safety data sheet — importation
(3) No supplier shall import a hazardous product that is intended for use, handling or storage in a work place in Canada if the safety data sheet for the hazardous product that the supplier obtains or prepares in order to comply with the requirement set out in paragraph 14(a) is false, misleading or likely to create an erroneous impression, with respect to the information that is required to be included in a label or safety data sheet for that hazardous product in order for the supplier to comply with the requirements set out in paragraphs 14(a) and (b).
Course of sale
(4) No supplier who sells a hazardous product that is intended for use, handling or storage in a work place in Canada shall, in the course of selling the hazardous product, communicate by any means any information about the hazardous product that is false, misleading or likely to create an erroneous impression, with respect to the information that is required to be included in a label or safety data sheet for that hazardous product in order for the supplier to comply with the requirements set out in paragraphs 13(1)(a) to (b).
Preparing and Maintaining Documents
Requirements
14.3 (1) Every supplier who sells or imports a hazardous product that is intended for use, handling or storage in a work place in Canada shall prepare and maintain
(a) a document containing a true copy of a label that represents the label that is affixed to, printed on or attached to the hazardous product or the container in which the hazardous product is packaged in order to meet the requirement set out in paragraph 13(1)(b) or 14(b), as the case may be, when they sell or import the hazardous product;
(b) a document containing a true copy of a safety data sheet for the hazardous product that represents the safety data sheet that is in their possession in order to meet the requirement set out in paragraph 13(1)(a) or that they obtain or prepare in order to meet the requirement set out in paragraph 14(a), as the case may be, when they sell or import the hazardous product;
(c) if the supplier obtained the hazardous product from another person, a document that indicates the person’s name and address, the quantity of the hazardous product obtained by the supplier and the month and year in which they obtained it;
(d) a document that indicates, for any sales of the hazardous product that result in a transfer of ownership or possession, the locations at which those sales took place, the period during which they took place, and, for each month in that period, the quantity sold during the month; and
(e) the prescribed documents.
Period for keeping documents
(2) The supplier shall keep the documents for six years after the end of the year to which they relate or for any other period that may be prescribed.
Keeping and providing documents
(3) The supplier shall keep the documents at the supplier’s place of business in Canada or at any prescribed place and shall, on written request, within the time and in the manner specified in the request, provide them to the Minister or an inspector.
Exemption — outside Canada
(4) The Minister may, subject to any terms and conditions that he or she may specify, exempt a supplier from the requirement to keep documents in Canada if the Minister considers it unnecessary or impractical for the supplier to keep them in Canada.
R.S., c. 24 (3rd Supp.), s. 1; 1999, c. 31, s. 129
115. (1) Paragraphs 15(1)(a) to (e) of the Act are replaced by the following:
(a) defining, for the purposes of Schedule 2, any word or expression used in Schedule 2 but not defined in this Act;
(a.1) establishing, for any hazard class listed in Schedule 2, categories and subcategories of that hazard class;
(b) respecting the classification of products, mixtures, materials and substances in a category or subcategory of a hazard class listed in Schedule 2;
(c) respecting safety data sheets;
(c.1) respecting labels;
(d) respecting the preparation and maintenance of documents, including by specifying the documents to be prepared and maintained, where they are to be kept and for how long;
R.S., c. 24 (3rd Supp.), s. 1
(2) Paragraphs 15(1)(f) to (h) of the Act are replaced by the following:
(f) exempting from the application of this Part and the regulations made under this subsection or any provision of this Part or those regulations, on any terms and conditions that may be specified in those regulations,
(i) the sale or importation of any hazard- ous product or class of hazardous prod- ucts either generally or in the quantities or concentrations, in the circumstances, at the places, premises or facilities, for the purposes or in the containers that are specified in those regulations, and
(ii) any class of suppliers;
R.S., c. 24 (3rd Supp.), s. 1
(3) Paragraphs 15(1)(i) to (l) of the Act are replaced by the following:
(i) defining the expression “work place” for the purposes of this Part;
(j) requiring any supplier who sells or imports a hazardous product that is intended for use, handling or storage in a work place in Canada to provide, as soon as feasible, any information that is included in the safety data sheet that is in the supplier’s possession for the hazardous product to any prescribed safety professional or health professional who requests that information for a prescribed purpose;
(k) requiring a prescribed safety professional or health professional — to whom a supplier who sells or imports a hazardous product that is intended for use, handling or storage in a work place in Canada has provided information about the hazardous product that the supplier is exempt from disclosing under any Act of Parliament — to keep confidential, except for the purpose for which it is provided, any of that information that the supplier specifies as being confidential, if that information was provided at the request of the safety professional or health professional for a prescribed purpose;
(l) subject to the Hazardous Materials Information Review Act, requiring any supplier who sells or imports a hazardous product that is intended for use, handling or storage in a work place in Canada to identify, as soon as feasible, on request of any person within a class of persons specified in the regulations made under this subsection, the source for any toxicological data used in the preparation of any safety data sheet that the supplier has provided or caused to be provided in order to meet the requirement set out in paragraph 13(1)(a.1) or has obtained or prepared in order to meet the requirement set out in paragraph 14(a), as the case may be;
R.S., c. 24 (3rd Supp.), s. 1
(4) Subsections 15(2) and (3) of the Act are replaced by the following:
Regulations
(2) The Governor in Council may make regulations respecting the sale or importation of any hazardous product referred to in subsection 14.1(1) or (2).
Externally produced material
(3) A regulation made under subsection (1) or (2) may incorporate by reference documents produced by a person or body other than the Minister, including by
(a) an organization established for the purpose of writing standards, such as an organization accredited by the Standards Council of Canada;
(b) an industrial or trade organization; or
(c) a government.
Reproduced or translated material
(4) A regulation made under subsection (1) or (2) may incorporate by reference documents that the Minister reproduces or translates from documents produced by a person or body other than the Minister
(a) with any adaptations of form and reference that will facilitate their incorporation into the regulation; or
(b) in a form that sets out only the parts of them that apply for the purposes of the regulation.
Jointly produced documents
(5) A regulation made under subsection (1) or (2) may incorporate by reference documents that the Minister produces jointly with another government for the purpose of harmonizing the regulation with other laws.
Internally produced standards
(6) A regulation made under subsection (1) or (2) may incorporate by reference technical or explanatory documents that the Minister produces, including
(a) specifications, classifications, illustrations, graphs or other information of a technical nature; and
(b) test methods, procedures, operational standards, safety standards or performance standards of a technical nature.
Incorporation as amended from time to time
(7) Documents may be incorporated by reference as amended from time to time.
For greater certainty
(8) Subsections (3) to (7) are for greater certainty and do not limit any authority to make regulations incorporating material by reference that exists apart from those subsections.
Definition of “government”
(9) In this section, “government” means any of the following or their institutions:
(a) the federal government;
(b) a corporation named in Schedule III to the Financial Administration Act;
(c) a provincial government or a public body established under an Act of the legislature of a province;
(d) an aboriginal government as defined in subsection 13(3) of the Access to Information Act;
(e) a government of a foreign state or of a subdivision of a foreign state; and
(f) an international organization of states.
R.S., c. 24 (3rd Supp.), s. 1
116. Section 16 of the Act is repealed.
2004, c. 15, s. 68
117. Subsection 16.1(2) of the Act is replaced by the following:
Interim orders — section 18
(2) The Minister may make an interim order in which any power referred to in section 18 is deemed to be exercised, if the Minister believes that immediate action is required to deal with a significant risk, direct or indirect, to health or safety.
R.S., c. 24 (3rd Supp.), s. 1
118. Section 17 of the Act and the heading before it are repealed.
R.S., c. 24 (3rd Supp.), s. 1
119. Section 18 of the Act and the heading before it are replaced by the following: