His Excellency the Administrator of the Government of Canada recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to implement certain provisions of the budget tabled in Parliament on April 19, 2021 and other measures”.

Part 1 implements certain income tax measures by

It also makes related and consequential amendments to the Excise Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001, the Greenhouse Gas Pollution Pricing Act, the Income Tax Regulations and the Canada Disability Savings Regulations.

Part 2 implements certain Goods and Services Tax/Harmonized Sales Tax (GST/HST) measures by

It also makes related and consequential amendments to the New Harmonized Value-added Tax System Regulations, No. 2.

Part 3 implements certain excise measures by increasing excise duty rates on tobacco products by $4.‍00 per carton of 200 cigarettes along with corresponding increases to the excise duty rates on other tobacco products.

Part 4 enacts an Act and amends several Acts in order to implement various measures.

Division 1 of Part 4 amends the Canada Deposit Insurance Corporation Act to, among other things,

It also amends the Payment Clearing and Settlement Act to

Finally, it amends not-in-force provisions of the Canada Deposit Insurance Corporation Act, enacted by the Budget Implementation Act, 2018, No. 1, so that, under certain circumstances, an error or omission that results in a failure to meet a requirement of the schedule to the Canada Deposit Insurance Corporation Act will not prevent a deposit from being considered a separate deposit.

Division 2 of Part 4 amends the Bank of Canada Act to authorize the Bank of Canada to publish certain information about unclaimed amounts.

It also amends the Pension Benefits Standards Act, 1985 with respect to the transfer of pension plan assets relating to the pension benefit credit of any person who cannot be located to, among other things,

Finally, it amends the Trust and Loan Companies Act and the Bank Act to

Division 3 of Part 4 amends the Budget Implementation Act, 2018, No. 2 to exclude certain businesses from the application of a provision of the Bank Act that it enacts, which allows certain agreements that have been entered into with banks to be cancelled.

Division 4 of Part 4 amends the Trust and Loan Companies Act, the Bank Act and the Insurance Companies Act to extend the period during which federal financial institutions governed by those Acts may carry on business to June 30, 2025.

Division 5 of Part 4 amends the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law) to

Division 6 of Part 4 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to

Division 7 of Part 4 enacts the Retail Payment Activities Act, which establishes an oversight framework for retail payment activities. Among other things, that Act requires certain payment service providers to identify and mitigate operational risks, safeguard end-user funds and register with the Bank of Canada. That Act also provides the Minister of Finance with powers to address risks related to national security that could be posed by payment service providers. This Division also makes related amendments to the Canada Deposit Insurance Corporation Act, the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, the Financial Consumer Agency of Canada Act and the Payment Card Networks Act.

Division 8 of Part 4 amends the Pension Benefits Standards Act, 1985 to establish new requirements and grant new regulation-making powers to the Governor in Council with respect to negotiated contribution plans.

Division 9 of Part 4 amends the First Nations Fiscal Management Act to allow First Nations that are borrowing members of the First Nations Finance Authority to assign their rights to certain revenues payable by Her Majesty in right of Canada, for the purpose of securing financing for that Authority’s borrowing members.

Division 10 of Part 4 amends the Federal-Provincial Fiscal Arrangements Act to, among other things, increase the maximum amount of a fiscal stabilization payment that may be made to a province and to make technical changes to the calculation of fiscal stabilization payments.

Division 11 of Part 4 amends the Federal-Provincial Fiscal Arrangements Act to authorize additional payments to the provinces and territories.

Division 12 of Part 4 authorizes payments to be made out of the Consolidated Revenue Fund in relation to Canada’s COVID-19 immunization plan.

Division 13 of Part 4 authorizes payments to be made out of the Consolidated Revenue Fund in relation to infrastructure and amends the heading of Part 9 of the Keeping Canada’s Economy and Jobs Growing Act.

Division 14 of Part 4 authorizes amounts to be paid out of the Consolidated Revenue Fund, to a maximum total amount of $3,056,491,000, for annual payments to Newfoundland and Labrador in accordance with the terms and conditions of the Hibernia Dividend Backed Annuity Agreement.

Division 15 of Part 4 amends the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act to authorize the Minister of Finance to make an additional fiscal equalization offset payment to Nova Scotia for the 2020–2021 fiscal year and to extend that Minister’s authority to make additional fiscal equalization offset payments to Nova Scotia until March 31, 2023.

Division 16 of Part 4 amends the Telecommunications Act to provide that decisions made by the Canadian Radio-television and Telecommunications Commission on whether or not to allocate funding to expand access to telecommunications services in underserved areas are not subject to review under section 12 or 62 of that Act but are subject to review by the Commission on its own initiative. It also amends that Act to provide for the exchange of information within the federal government and with provincial governments for the purpose of coordinating financial support for access to telecommunications services in underserved areas.

Division 17 of Part 4 amends the Canada Small Business Financing Act to, among other things,

Division 18 of Part 4 amends the Customs Act to change certain rules respecting the correction of declarations made under section 32.‍2 of that Act, the payment of interest due to Her Majesty and securities required under that Act, and to define the expression “sold for export to Canada” for the purposes of Part III of that Act.

Division 19 of Part 4 amends the Canada–United States–Mexico Agreement Implementation Act to require the concurrence of the Minister of Finance when the Minister designated for the purposes of section 16 of that Act appoints panellists and committee members and proposes the names of individuals for rosters under Chapter 10 of the Canada–United States–Mexico Agreement.

Division 20 of Part 4 amends Part 5 of the Department of Employment and Social Development Act to make certain reforms to the Social Security Tribunal, including

Division 21 of Part 4 amends the definition of “previous contractor” in Part I of the Canada Labour Code in order to extend equal remuneration protection to employees who are covered by a collective agreement and who work for an employer that

Division 22 of Part 4 amends Part III of the Canada Labour Code to establish a federal minimum wage of $15 per hour and to provide that if the minimum wage of a province or territory is higher than the federal minimum wage, the employer is to pay a minimum wage that is not less than that higher minimum wage. It also provides that, except in certain circumstances, the federal minimum wage per hour is to be adjusted upwards annually on the basis of the Consumer Price Index for Canada.

Division 23 of Part 4 amends the provisions of the Canada Labour Code respecting leave related to the death or disappearance of a child in cases in which it is probable that the child died or disappeared as a result of a crime, in order to, among other things,

Division 24 of Part 4 authorizes the Minister of Employment and Social Development to make a one-time payment to Quebec for the purpose of offsetting some of the costs of aligning the Quebec Parental Insurance Plan with temporary measures set out in Part VIII.‍5 of the Employment Insurance Act.

Division 25 of Part 4 amends the Judges Act to provide that, if the Canadian Judicial Council recommends that a judge be removed from judicial office, the time counted towards the judge’s pension entitlements will be frozen and their pension contributions will be suspended, as of the day on which the recommendation is made. If the recommendation is rejected, the judge’s pension contributions will resume, the time counted towards their pension entitlement will include the suspension period and the judge will be required to make all the contributions that would have been required had the contributions never been suspended.

Division 26 of Part 4 amends the Federal Courts Act and the Tax Court of Canada Act to increase the number of judges for the Federal Court of Appeal by one and the number of judges for the Tax Court of Canada by two. It also amends the Judges Act to authorize the salary for the new Associate Chief Justice for the Trial Division of the Supreme Court of Newfoundland and Labrador and the salaries for the following new judges: five judges for the Ontario Superior Court of Justice, two judges for the Supreme Court of British Columbia and two judges for the Court of Queen’s Bench for Saskatchewan.

Division 27 of Part 4 amends the National Research Council Act to provide the National Research Council of Canada with the authority to engage in the production of “drugs” or “devices”, as those terms are defined in the Food and Drugs Act, for the purpose of protecting or improving public health. It also amends that Act to provide authority for the incorporation of corporations and the acquisition of shares in corporations.

Division 28 of Part 4 amends the Department of Employment and Social Development Act in relation to the collection and use of Social Insurance Numbers by the Minister of Labour.

Division 29 of Part 4 amends the Canada Student Loans Act to provide that, during the period that begins on April 1, 2021 and ends on March 31, 2023, no interest is payable by a borrower on a guaranteed student loan.

It also amends the Canada Student Financial Assistance Act to provide that, during the period that begins on April 1, 2021 and ends on March 31, 2023, no interest is payable by a borrower on a student loan.

Finally, it amends the Apprentice Loans Act to provide that, during the period that begins on April 1, 2021 and ends on March 31, 2023, no interest is payable by a borrower on an apprentice loan.

Division 30 of Part 4 confirms the validity of certain regulations in relation to the cancellation or postponement of certain First Nations elections.

Division 31 of Part 4 amends the Old Age Security Act to increase the Old Age Security pension payable to individuals aged 75 and over by 10%. It also provides that any amount payable in relation to a program to provide a one-time payment of $500 to pensioners who are 75 years of age or older may be paid out of the Consolidated Revenue Fund.

Division 32 of Part 4 amends the Public Service Employment Act to, among other things,

Division 33 of Part 4 authorizes the making of payments to the provinces for early learning and child care for the fiscal year beginning on April 1, 2021.

Division 34 of Part 4 amends the Canada Recovery Benefits Act to, among other things,

Division 35 of Part 4 amends the Employment Insurance Act to, among other things,

(a) facilitate access to unemployment benefits for a period of one year by

(i) reducing the number of hours of insurable employment required to qualify for unemployment benefits to a national threshold of 420 hours,

(ii) reducing the amount of earnings from self-employment that a self-employed person is required to have to be eligible to access special unemployment benefits,

(iii) providing that only a claimant’s most recent separation from employment will be considered in determining whether they qualify for unemployment benefits,

(iv) ensuring that earnings paid to a person because of the complete severance of their relationship with their former employer do not extend the person’s benefit period, and

(v) providing for an increase in the maximum number of weeks for which regular unemployment benefits may be paid to a seasonal worker if certain conditions are met; and

(b) extend the maximum number of weeks for which benefits may be paid because of a prescribed illness, injury or quarantine from 15 to 26.

It also amends the Canada Labour Code to, among other things, extend to 27 the maximum number of weeks to which an employee is entitled for a medical leave of absence from employment.

It also amends the Employment Insurance Regulations to, among other things, ensure that, for a period of one year, earnings paid to a person because of the complete severance of their relationship with their former employer do not extend the person’s benefit period or delay payment of benefits to the person.

Finally, it amends the Employment Insurance (Fishing) Regulations to, among other things, reduce, for a period of one year, the amount of earnings that a fisher is required to have to qualify for unemployment benefits.

Division 36 of Part 4 amends the Canada Elections Act to provide that the offences related to the prohibition on making or publishing certain false statements with the intention of affecting the results of an election require that the person or the entity making or publishing the statement knows that the statement in question is false.

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

COVID-19 — automobile operating expense benefit

(2.‍2) If a taxpayer met the condition in subparagraph (iv) of the description of A in paragraph (1)‍(k) for the 2019 taxation year in respect of the use of an automobile made available to the taxpayer, or to a person related to the taxpayer, by an employer (within the meaning assigned by subsection (2)), then for the purpose of applying paragraph (1)‍(k) in respect of an automobile provided by that employer in 2020 or 2021 (referred to in this subsection as the “relevant year”), the amount determined for A in paragraph (1)‍(k) in respect of the automobile for the relevant year is deemed to be the lesser of

• (a) ½ of the amount determined under subparagraph (1)‍(e)‍(i) in respect of the automobile for the relevant year, and

• (b) the amount determined under subparagraph (v) of the description of A in paragraph (1)‍(k) in respect of the automobile for the relevant year.

COVID-19 — reasonable standby charge

(2.‍3) A taxpayer is deemed to meet the condition in subparagraph (a)‍(ii) of the description of A in subsection (2) in respect of an employer (within the meaning assigned by subsection (2)) for the 2020 or 2021 taxation year if the taxpayer met the conditions in subparagraphs (a)‍(i) and (ii) of the description of A in subsection (2) for the 2019 taxation year in respect of an automobile made available to the taxpayer, or to a person related to the taxpayer, by that employer.

Definitions

(7) The following definitions apply in this section and in subsection 47(3), paragraph 53(1)‍(j), subsection 110(0.‍1), paragraphs 110(1)‍(d), (d.‍01) and (e) and subsections 110(1.‍1) to (1.‍9) and (2.‍1).

Acquisition of control

(2) If at any time a parent or group of parents referred to in section 212.‍3 acquires control of a CRIC and the CRIC was not controlled by a non-resident person, or a group of non-resident persons not dealing with each other at arm’s length, immediately before that time, no amount is to be included under subsection (1) in computing the income of the CRIC in respect of a pertinent loan or indebtedness (as defined in subsection 212.‍3(11)) for the period that begins at that time and ends on the day that is 180 days after that time.

Election where change of use

(2) For the purposes of this Subdivision and section 13, if a taxpayer elects in respect of any property of the taxpayer in the taxpayer’s return of income for a taxation year under this Part,

• (a) if subparagraph (1)‍(a)‍(i) or paragraph 13(7)‍(b) would otherwise apply to the property for the taxation year, the taxpayer is deemed not to have begun to use the property for the purpose of gaining or producing income;

• (b) if subparagraph (1)‍(c)‍(ii) or 13(7)‍(d)‍(i) would otherwise apply to the property for the taxation year, the taxpayer is deemed not to have increased the use regularly made of the property for the purpose of gaining or producing income relative to the use regularly made of the property for other purposes; and

• (c) if the taxpayer rescinds the election in respect of the property in the taxpayer’s return of income under this Part for a subsequent taxation year,

  • (i) if paragraph (a) applied to the taxpayer in the taxation year, the taxpayer is deemed to have begun to use the property for the purpose of gaining or producing income on the first day of the subsequent taxation year, and

  • (ii) if paragraph (b) applied to the taxpayer in the taxation year, the taxpayer is deemed to have increased the use regularly made of the property for the purpose of gaining or producing income on the first day of the subsequent taxation year by the amount that would have been the increase in the taxation year if the election had not been made.

Election concerning principal residence

(3) If at any time a property that was acquired by a taxpayer for the purpose of gaining or producing income, or that was acquired in part for that purpose, ceases in whole or in part to be used for that purpose and becomes, or becomes part of, the principal residence of the taxpayer, paragraphs (1)‍(a) and (c) shall not apply to deem the taxpayer to have disposed of the property at that time and to have reacquired it immediately thereafter if the taxpayer so elects by notifying the Minister in writing on or before the earlier of

• (iv) described in subsection 146.‍5(3) that is not required by that subsection to be included in the taxpayer’s income;

• (iv) financial assistance provided under a program established by a government, or government agency, in Canada that provides income replacement benefits similar to income replacement benefits provided under a program established under the Employment Insurance Act, other than amounts referred to in subparagraph (iv.‍1),

• (iv.‍1) financial assistance provided under

  • (A) the Canada Emergency Response Benefit Act,

  • (B) Part VIII.‍4 of the Employment Insurance Act,

  • (C) the Canada Emergency Student Benefit Act,

  • (D) the Canada Recovery Benefits Act, or

  • (E) a program established by a government, or government agency, of a province, that provides income replacement benefits similar to income replacement benefits provided under a program established under an Act referred to in any of clauses (A) to (D), or

• Advanced life deferred annuity

  (z.‍5) any amount required by section 146.‍5 to be included in computing the taxpayer’s income for the year.

• (A.‍2) the amount included by subsection 146.‍5(3) in computing the taxpayer’s income for the year as a payment received by the taxpayer as a consequence of the death of an individual who was

  • (I) immediately before the death, the spouse or common-law partner of the taxpayer, or

  • (II) a parent or grandparent of the taxpayer, if, immediately before the death, the taxpayer was financially dependent on the individual for support because of mental or physical infirmity,

• COVID-19 – other benefit repayments

  (v.‍3) any benefit repaid by the taxpayer before 2023 to the extent that the amount of the benefit was included in computing the taxpayer’s income for the year under any of clauses 56(1)‍(r)‍(iv.‍1)‍(A) to (D), except to the extent that the amount is

  • (i) deducted in computing the taxpayer’s income for any year under paragraph (n), or

  • (ii) deductible in computing the taxpayer’s income for any year under paragraph (v.‍2);

• (e) if the eligible individual is not a DTC-eligible individual (as defined in subsection 146.‍4(1)), is made not later than the end of the fourth taxation year following the first taxation year throughout which the beneficiary is not a DTC-eligible individual. (paiement de REEI déterminé)

• (b) a child dependent on the taxpayer or the taxpayer’s spouse or common-law partner for support and whose income for the year does not exceed the amount determined for F in subsection 118(1.‍1) for the year

COVID-19 – child care expenses

(3.‍1) For the purpose of applying this section in respect of a taxpayer for the 2020 or 2021 taxation year,

• (a) the definition child care expense in subsection (3) is to be read without reference to its paragraph (a) if at any time in the year the taxpayer was entitled to an amount referred to in subparagraph 56(1)‍(a)‍(iv) or (vii) or paragraph 56(1)‍(r), in respect of the year; and

• (b) paragraph (b) of the definition earned income in subsection (3) is to be read as follows:

  • (b) all amounts that are included, or that would, but for paragraph 81(1)‍(a) or subsection 81(4), be included, because of section 6 or 7, subparagraph 56(1)‍(a)‍(iv) or (vii) or paragraph 56(1)‍(n), (n.‍1), (o) or (r), in computing the taxpayer’s income,

COVID-19 – disability supports deduction

64.‍01 For the purpose of applying section 64 in respect of a taxpayer for the 2020 or 2021 taxation year,

• (a) the description of A in paragraph 64(a) is to be read without reference to its subparagraph (i) if at any time in the year the taxpayer was entitled to an amount referred to in subparagraph 56(1)‍(a)‍(iv) or (vii) or paragraph 56(1)‍(r), in respect of the year; and

• (b) clause 64(b)‍(i)‍(A) is to be read as follows:

  • (A) an amount included under section 5, 6 or 7, subparagraph 56(1)‍(a)‍(iv) or (vii) or paragraph 56(1)‍(n), (o) or (r) in computing the taxpayer’s income for the year, or

COVID-19 – time extension to 36 months

(12.‍6001) The references to “24 months” in subsections (12.‍6) and (12.‍62) are to be read as references to “36 months” in respect of agreements entered into after February 2018 and before 2021.

COVID-19 – agreements in 2019 or 2020

(12.‍731) If an agreement is entered into in 2019 or 2020 by a corporation to issue flow-through shares of the corporation,

• (a) the reference in subparagraph (12.‍73)‍(a)‍(ii) to “at the end of the year” is to be read as a reference to “at the end of the subsequent year”; and

• (b) the reference in paragraph (12.‍73)‍(c) to “before March of the calendar year” is to be read as a reference to “before March of the second calendar year”.

Short taxation year

(13.‍1) If a taxpayer has a taxation year that is less than 51 weeks, the amount determined in respect of the year under each of subparagraph (4)‍(b)‍(i), paragraphs 66.‍2(2)‍(c) and (d), subparagraph (b)‍(i) of the definition global foreign resource limit in subsection 66.‍21(1), subparagraph 66.‍21(4)‍(a)‍(i), clause 66.‍21(4)‍(a)‍(ii)‍(B) and paragraphs 66.‍4(2)‍(b) and (c) and 66.‍7(2.‍3)‍(a), (4)‍(a) and (5)‍(a) shall not exceed that proportion of the amount otherwise determined that the number of days in the year is of 365.

• COVID-19 – emergency subsidies

  (g.‍6) for the purposes of section 125.‍7, the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation unless it is reasonable to consider that one of the main purposes of the amalgamation is to cause the new corporation to qualify for the deemed overpayment under any of subsections 125.‍7(2) to (2.‍2) or to increase the amount of that deemed overpayment;

• COVID-19 — automobile benefits

  (g.‍7) for the purposes of subsections 6(2.‍2) and (2.‍3), the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation;

• Continuing corporation

  (j.‍97) for the purposes of subsection 110(0.‍1), paragraph 110(1)‍(e) and subsection 110(1.‍31), the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation;

• (B) whose income (computed without reference to subsection 104(14)) for the beneficiary’s year does not exceed the amount determined for F in subsection 118(1.‍1) for the year, and

Definitions

110 (0.‍1) The following definitions apply in this section.

consolidated financial statements has the same meaning as in subsection 233.‍8(1).‍ (états financiers consolidés)

specified person, at any time, means a qualifying person that meets the following conditions:

• (a) it is not a Canadian-controlled private corporation;

• (b) if the qualifying person is a member of a group that annually prepares consolidated financial statements, the total consolidated group revenue reflected in the last consolidated financial statements of the group presented to shareholders or unitholders — of 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) — before that time exceeds $500 million; and

• (c) if paragraph (b) does not apply, it has gross revenue in excess of $500 million based on

  • (i) the amounts reflected in the financial statements of the qualifying person presented to the shareholders or unitholders of the qualifying person for the last fiscal period of the qualifying person that ended before that time,

  • (ii) if subparagraph (i) does not apply, the amounts reflected in the financial statements of the qualifying person presented to the shareholders or unitholders of the qualifying person for the last fiscal period of the qualifying person that ended before the end of the last fiscal period referred to in subparagraph (i), and

  • (iii) if subparagraph (i) does not apply and financial statements were not presented as described in subparagraph (ii), the amounts that would have been reflected in the annual financial statements of the qualifying person for the last fiscal period of the qualifying person that ended before that time, if such statements had been prepared in accordance with generally accepted accounting principles. (personne déterminée)

vesting year, of a security to be acquired under an agreement, means

• (a) if the agreement specifies the calendar year in which the taxpayer’s right to acquire the security first becomes exercisable (otherwise than as a consequence of an event that is not reasonably foreseeable at the time the agreement is entered into), that calendar year; and

• (b) in any other case, the calendar year in which the right to acquire the security would become exercisable if the agreement had specified that all identical rights to acquire securities become exercisable on a pro rata basis over the period that

  • (i) begins on the day that the agreement was entered into, and

  • (ii) ends on the day that is the earlier of

    • (A) the day that is 60 months after the day the agreement is entered into, and

    • (B) the last day that the right to acquire the security could become exercisable under the agreement. (année de dévolution)

• Employee options

  (d) an amount equal to 1/2 of the amount of the benefit deemed by subsection 7(1) to have been received by the taxpayer in the year in respect of a security (other than a security that is a non-qualified security) that a particular qualifying person has agreed after February 15, 1984 to sell or issue under an agreement, in respect of the transfer or other disposition of rights under the agreement or as a result of the death of the taxpayer because the taxpayer immediately before death owned a right to acquire the security under the agreement, if

• Employer deduction — non-qualified securities

  (e) an amount equal to the amount of the benefit in respect of employment with the taxpayer deemed by subsection 7(1) to have been received by an individual in the year in respect of a non-qualified security that the taxpayer (or a qualifying person that does not deal at arm’s length with the taxpayer) has agreed to sell or issue under an agreement with the individual, if

  • (i) the taxpayer is a qualifying person,

  • (ii) at the time the agreement was entered into, the individual was an employee of the taxpayer,

  • (iii) the amount is not claimed as a deduction in computing the taxable income of another qualifying person,

  • (iv) an amount would have been deductible in computing the taxable income of the individual under paragraph (d) if the security were not a non-qualified security,

  • (v) in the case of an individual who is not resident in Canada throughout the year, the benefit deemed by subsection 7(1) to have been received by the individual was included in computing the taxable income earned in Canada of the individual for the year, and

  • (vi) the notification requirements in subsection (1.‍9) are met in respect of the security;

Election by particular qualifying person

(1.‍1) For the purpose of computing the taxable income of a taxpayer for a taxation year, paragraph (1)‍(d) shall be read without reference to its subparagraph (i) in respect of a right granted to the taxpayer under an agreement to sell or issue securities referred to in subsection 7(1) if

• (a) the particular qualifying person elects in prescribed form that neither the particular qualifying person nor any person not dealing at arm’s length with the particular qualifying person will deduct in computing its income for a taxation year any amount (other than a designated amount described in subsection (1.‍2)) in respect of a payment to or for the benefit of a taxpayer for the taxpayer’s transfer or disposition of that right;

Designated amount

(1.‍2) For the purposes of subsections (1.‍1) and (1.‍44), an amount is a designated amount if the following conditions are met:

• (a) the amount would otherwise be deductible in computing the income of the particular qualifying person in the absence of subsections (1.‍1) and (1.‍44);

• (b) the amount is payable to a person

  • (i) with whom the particular qualifying person deals at arm’s length, and

  • (ii) who is neither an employee of the particular qualifying person nor of any person not dealing at arm’s length with the particular qualifying person; and

• (c) the amount is payable in respect of an arrangement entered into for the purpose of managing the particular qualifying person’s financial risk associated with a potential increase in value of the securities under the agreement described in subsection (1.‍1) or (1.‍44).

Determination of non-qualified securities

(1.‍3) Subsection (1.‍31) applies to a taxpayer in respect of an agreement if

• (a) a particular qualifying person agrees to sell or issue securities of the particular qualifying person (or another qualifying person that does not deal at arm’s length with the particular qualifying person) to the taxpayer under the agreement;

• (b) at the time the agreement is entered into (in this subsection and subsection (1.‍31) referred to as the “relevant time”), the taxpayer is an employee of the particular qualifying person or of a qualifying person that does not deal at arm’s length with the particular qualifying person; and

• (c) at the relevant time, any of the following persons is a specified person:

  • (i) the particular qualifying person,

  • (ii) the other qualifying person, if any, referred to in paragraph (a), or

  • (iii) the other qualifying person, if any, referred to in paragraph (b).

Annual vesting limit

(1.‍31) If this subsection applies to a taxpayer in respect of an agreement, the securities to be sold or issued under the agreement, for each vesting year of those securities, are deemed to be non-qualified securities for the purposes of this section in the proportion determined by the formula

Non-qualified security designation

(1.‍4) If subsection (1.‍31) applies to a taxpayer in respect of an agreement and the particular qualifying person referred to in paragraph (1.‍3)‍(a) designates one or more securities to be sold or issued under the agreement as non-qualified securities, the following rules apply:

• (a) those securities are deemed to be non-qualified securities for the purposes of this section; and

• (b) the particular qualifying person may not elect under subsection (1.‍1) in respect of a right to acquire those securities.

Ordering of acquisition of securities

(1.‍41) If a taxpayer acquires a security under an agreement and the acquired security could be a security that is not a non-qualified security, the security is to be considered a security that is not a non-qualified security for the purposes of this section.

Ordering of simultaneous agreements — subsection (1.‍31)

(1.‍42) If two or more agreements to sell or issue options are entered into at the same time and the particular qualifying person referred to in subsection (1.‍3) designates the order of the agreements, then the agreements are deemed to have been entered into in that order for the purposes of paragraph (b) of the description of D in subsection (1.‍31).

Application of subsection (1.‍44)

(1.‍43) Subsection (1.‍44) applies in respect of a taxpayer’s right to acquire a security under an agreement if

• (a) subsection (1.‍31) applies to the taxpayer in respect of the agreement;

• (b) the security is not a non-qualified security; and

• (c) a payment is made to or for the benefit of the taxpayer for the taxpayer’s transfer or disposition of the right.

Cash-out — securities not designated as non-qualified

(1.‍44) If this subsection applies in respect of a taxpayer’s right to acquire a security under an agreement

• (a) no qualifying person may deduct, in computing its income for a taxation year, an amount (other than a designated amount described in subsection (1.‍2)) in respect of the payment referred to in paragraph (1.‍43)‍(c); and

• (b) paragraph (1)‍(d) shall, in respect of the right, be read without reference to its subparagraph (i).

Notification — non-qualified security

(1.‍9) If a security to be issued or sold under an agreement between an employee and a qualifying person is a non-qualified security, the employer of the employee shall

• (a) notify the employee in writing that the security is a non-qualified security no later than 30 days after the day that the agreement is entered into; and

• (b) notify the Minister in prescribed form that the security is a non-qualified security on or before the filing-due date for the taxation year of the qualifying person that includes the time that the agreement is entered into.

Non-capital losses of employee life and health trusts

(7.‍4) For the purposes of computing the taxable income of an employee life and health trust for a taxation year, there may be deducted such portion as the trust may claim of the trust’s non-capital losses for the seven taxation years immediately preceding and the three taxation years immediately following the year.

• (iii.‍22) the total of all amounts, each of which is an amount included under subparagraph 56(1)‍(r)‍(iv.‍1) in computing the non-resident person’s income for the year,

• (d) the deductions permitted by subsection 111(1) and, to the extent that they relate to amounts included in computing the amount determined under any of paragraphs (a) to (c), the deductions permitted by any of paragraphs 110(1)‍(d) to (d.‍2), (e) and (f) and subsection 110.‍1(1),

Annual adjustment

117.‍1 (1) Each specified amount in relation to tax payable under this Part or Part I.‍2 for a taxation year shall be adjusted so that the amount to be used for the year under the provision for which the amount is relevant is the total of

• (a) the amount that would, but for subsection (3), be the amount to be used under the relevant provision for the preceding taxation year, and

Annual adjustment — amounts

(2) For the purposes of subsection (1), each of the following amounts is a specified amount in relation to tax payable under this Part or Part I.‍2 for a taxation year:

• (a) the amount of $300 referred to in subparagraph 6(1)‍(b)‍(v.‍1);

• (b) the amount of $1,000 referred to in the formula in paragraph 8(1)‍(s);

• (c) the amount of $400,000 referred to in the formula in paragraph 110.‍6(2)‍(a);

• (d) each of the amounts expressed in dollars in subsection 117(2);

• (e) each of the amounts expressed in dollars in the description of B in subsection 118(1);

• (f) the amount of $12,298 in the description of A in subsection 118(1.‍1);

• (g) the amount of $15,000 in paragraph (d) of the description of F in subsection 118(1.‍1);

• (h) each of the amounts expressed in dollars in subsection 118(2);

• (i) the amount of $1,000 referred to in subsection 118(10);

• (j) the amount of $15,000 referred to in subsection 118.‍01(2);

• (k) each of the amounts expressed in dollars in subsection 118.‍2(1);

• (l) each of the amounts expressed in dollars in subsection 118.‍3(1);

• (m) each of the amounts expressed in dollars in subsection 122.‍5(3);

• (n) the amount of $2,500 referred to in subsection 122.‍51(1);

• (o) each of the amounts expressed in dollars in subsection 122.‍51(2);

• (p) the amount of $14,000 referred to in subsection 122.‍7(1.‍3);

• (q) the amounts of $1,395 and $2,403 in the description of A, and each of the amounts expressed in dollars in the description of B, in subsection 122.‍7(2);

• (r) the amount of $720 in the description of C, and each of the amounts expressed in dollars in the description of D, in subsection 122.‍7(3);

• (s) the amount of $10,000 in the description of B in subsection 122.‍91(2); and

• (t) each of the amounts expressed in dollars in Part I.‍2.

• (i) the basic personal amount of the individual for the year, and

• (iii) the basic personal amount of the individual for the year, and

• Single status

  (c) except in the case of an individual entitled to a deduction because of paragraph (a) or (b), the basic personal amount of the individual for the year,

Definition of basic personal amount

(1.‍1) For the purposes of subsection (1), basic personal amount, of an individual for a taxation year, means the amount determined by the formula

• (iii.‍3) an amount included under subsection 146.‍5(2),

• (a) the agreement entitles an individual to access content of the qualified Canadian journalism organization in digital form and that content is primarily written news; and

• (b) the qualified Canadian journalism organization does not hold a licence as defined in subsection 2(1) of the Broadcasting Act.‍ (abonnement aux nouvelles numériques)

Ceasing to qualify

(4) For the purposes of subsection (1), if amounts paid under an agreement cease to be qualifying subscription expenses at any particular time in a calendar year and, at the particular time, the Minister has communicated or otherwise made available pursuant to paragraph 241(3.‍4)‍(b) that these amounts qualify as qualifying subscription expenses, amounts paid under that agreement are deemed to be qualifying subscription expenses — to the same extent that the amounts paid were considered to be qualifying subscription expenses immediately before the particular time — until the end of the calendar year in which the Minister communicates or otherwise makes available pursuant to paragraph 241(3.‍4)‍(b) that amounts paid under the agreement no longer qualify as qualifying subscription expenses.

Notice to individuals

(5) If an organization enters into a digital news subscription agreement with an individual and amounts paid under the agreement cease to be qualifying subscription expenses, the organization shall inform the individual that amounts paid under the agreement are no longer qualifying subscription expenses.

• (b) reside with the qualified dependant either

  • (i) at least 40% of the time in the month in which the particular time occurs, or

  • (ii) on an approximately equal basis, and

Secondary earner exemption

(1.‍3) For the purposes of subsections (2) and (3),

• (a) if an eligible individual had an eligible spouse for a taxation year and the working income for the year of the eligible individual was less than the working income for the year of the eligible spouse, the eligible individual’s adjusted net income for the year is deemed to be the amount, if any, by which the eligible individual’s adjusted net income for the year (determined without reference to this subsection) exceeds the lesser of

  • (i) the eligible individual’s working income for the year, and

  • (ii) $14,000; and

• (b) if an eligible individual had an eligible spouse for a taxation year and the working income for the year of the eligible individual was greater than or equal to the working income for the year of the eligible spouse, the eligible spouse’s adjusted net income for the year is deemed to be the amount, if any, by which the eligible spouse’s adjusted net income for the year (determined without reference to this subsection) exceeds the lesser of

  • (i) the eligible spouse’s working income for the year, and

  • (ii) $14,000.

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

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

• (a) it does not hold a licence, as defined in subsection 2(1) of the Broadcasting Act; and

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

Tax credit

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

Partnership — tax credit

(2.‍1) If a taxpayer (other than a partnership) is a member of a partnership (other than a specified member of the partnership) at the end of a fiscal period of the partnership that ends in a taxation year of the taxpayer, the partnership is a qualifying journalism organization at any time in that fiscal period and the partnership files an information return in prescribed form containing prescribed information for that fiscal period, then the taxpayer is deemed to have, on the taxpayer’s balance-due day for the taxation year, paid on account of the taxpayer’s tax payable under this Part for the taxation year an amount determined by the formula

Partnership — application rule

(2.‍2) In this section, a taxpayer includes a partnership.

When assistance received

(3) For the purposes of this Act other than this section, and for greater certainty, the amount that a taxpayer is deemed under subsection (2) or (2.‍1) to have paid for a taxation year is assistance received by the taxpayer from a government immediately before the end of the year.

eligible employee, of an eligible entity in respect of a week in a qualifying period, means an individual employed by the eligible entity primarily in Canada throughout the qualifying period (or the portion of the qualifying period throughout which the individual was employed by the eligible entity), other than, if the qualifying period is any of the first qualifying period to the fourth qualifying period, an individual who is without remuneration by the eligible entity in respect of 14 or more consecutive days in the qualifying period.‍ (employé admissible)

top-up percentage, of an eligible entity for a qualifying period, means the percentage determined by regulation for the qualifying period or, if there is no percentage determined by regulation for the qualifying period,

• (a) for any of the fifth qualifying period to the tenth qualifying period, the lesser of 25% and the percentage determined by the formula

  1.‍25 × (A − 50%)

  where

  A

  is the entity’s top-up revenue reduction percentage for the qualifying period;

• (b) for any of the eleventh qualifying period to the seventeenth qualifying period, the lesser of 35% and the percentage determined by the formula

  1.‍75 × (A − 50%)

  where

  A

  is the entity’s top-up revenue reduction percentage for the qualifying period;

• (c) for the eighteenth qualifying period, the lesser of 25% and the percentage determined by the formula

  1.‍25 × (A − 50%)

  where

  A

  is the entity’s top-up revenue reduction percentage for the qualifying period;

• (d) for the nineteenth qualifying period, the lesser of 15% and the percentage determined by the formula

  0.‍75 × (A − 50%)

  where

  A

  is the entity’s top-up revenue reduction percentage for the qualifying period;

• (e) for the twentieth qualifying period, the lesser of 10% and the percentage determined by the formula

  0.‍5 × (A − 50%)

  where

  A

  is the entity’s top-up revenue reduction percentage for the qualifying period; and

• (f) for each qualifying period after the twentieth qualifying period, nil. (pourcentage compensatoire)

• (i) begins on March 1, 2019 and ends on May 31, 2019, in respect of any of the first qualifying period to the third qualifying period,

• (ii) begins on March 1, 2019 and ends on June 30, 2019, in respect of the fourth qualifying period, unless the eligible entity elects to use the period that begins on March 1, 2019 and ends on May 31, 2019 for that qualifying period,

• (iii) begins on July 1, 2019 and ends on December 31, 2019, in respect of any of the fifth qualifying period to the thirteenth qualifying period,

• (iii.‍1) begins on March 1, 2019 and ends on June 30, 2019, in respect of any of the fourteenth qualifying period to the seventeenth qualifying period, unless the eligible entity elects to use the period that begins on July 1, 2019 and ends on December 31, 2019 for that qualifying period,

• (iii.‍2) begins on July 1, 2019 and ends on December 31, 2019, in respect of the eighteenth qualifying period and any subsequent qualifying period, or

• (iv) if the eligible employee was on leave for any reason mentioned in subsection 12(3) of the Employment Insurance Act or section 2 of the Act respecting parental insurance, CQLR, c. A-29.‍011 throughout the period that begins on July 1, 2019 and ends on March 15, 2020, begins 90 days prior to the date on which the employee commenced that leave and ends on the day prior to the date on which they commenced their leave, in respect of the fifth qualifying period and any subsequent qualifying period.‍ (rémunération de base)

• (a) for the fifth qualifying period,

• (b) for the sixth qualifying period,

• (c) for the seventh qualifying period,

• (d) for the eighth qualifying period,

• (e) for the ninth qualifying period,

• (f) for the tenth qualifying period,

• (g) for the eleventh qualifying period to the seventeenth qualifying period,

  • (i) if the entity’s revenue reduction percentage is greater than or equal to 50%, 40%, and

  • (ii) in any other case, the percentage determined by the formula

    0.‍8 × A

    where

    A

    is the revenue reduction percentage;

• (h) for the eighteenth qualifying period,

  • (i) if the entity’s revenue reduction percentage is greater than or equal to 50%, 35%, and

  • (ii) in any other case, the percentage determined by the formula

    0.‍875 × (A − 10%)

    where

    A

    is the revenue reduction percentage;

• (i) for the nineteenth qualifying period,

  • (i) if the entity’s revenue reduction percentage is greater than or equal to 50%, 25%, and

  • (ii) in any other case, the percentage determined by the formula

    0.‍625 × (A − 10%)

    where

    A

    is the revenue reduction percentage;

• (j) for the twentieth qualifying period,

  • (i) if the entity’s revenue reduction percentage is greater than or equal to 50%, 10%, and

  • (ii) in any other case, the percentage determined by the formula

    0.‍25 × (A − 10%)

    where

    A

    is the revenue reduction percentage; and

• (k) for a qualifying period after the twentieth qualifying period, a percentage determined by regulation in respect of the eligible entity or, if there is no percentage determined by regulation for the qualifying period, nil. (pourcentage de base)

• (a) for the first qualifying period, March 2020;

• (b) for the second qualifying period, April 2020;

• (c) for the third qualifying period, May 2020;

• (c.‍1) for the fourth qualifying period, June 2020;

• (c.‍2) for the fifth qualifying period, July 2020;

• (c.‍3) for the sixth qualifying period, August 2020;

• (c.‍4) for the seventh qualifying period, September 2020;

• (c.‍5) for the eighth qualifying period, October 2020;

• (c.‍6) for the ninth qualifying period, November 2020;

• (c.‍7) for the tenth qualifying period, December 2020;

• (c.‍8) for the eleventh qualifying period, December 2020;

• (c.‍9) for the twelfth qualifying period, January 2021;

• (c.‍91) for the thirteenth qualifying period, February 2021;

• (c.‍92) for the fourteenth qualifying period, March 2021;

• (c.‍93) for the fifteenth qualifying period, April 2021;

• (c.‍94) for the sixteenth qualifying period, May 2021;

• (c.‍95) for the seventeenth qualifying period, June 2021;

• (c.‍96) for the eighteenth qualifying period, July 2021;

• (c.‍97) for the nineteenth qualifying period, August 2021;

• (c.‍98) for the twentieth qualifying period, September 2021;

• (c.‍99) for the twenty-first qualifying period, October 2021;

• (c.‍991) for the twenty-second qualifying period, November 2021; and

• (i) for the first qualifying period, March 2019,

• (ii) for the second qualifying period, April 2019,

• (iii) for the third qualifying period, May 2019,

• (iv) for the fourth qualifying period, June 2019,

• (v) for the fifth qualifying period, July 2019,

• (vi) for the sixth qualifying period, August 2019,

• (vii) for the seventh qualifying period, September 2019,

• (viii) for the eighth qualifying period, October 2019,

• (ix) for the ninth qualifying period, November 2019,

• (x) for the tenth qualifying period, December 2019,

• (xi) for the eleventh qualifying period, December 2019,

• (xii) for the twelfth qualifying period, January 2020,

• (xiii) for the thirteenth qualifying period, February 2020,

• (xiv) for the fourteenth qualifying period, March 2019,

• (xv) for the fifteenth qualifying period, April 2019,

• (xvi) for the sixteenth qualifying period, May 2019,

• (xvii) for the seventeenth qualifying period, June 2019,

• (xviii) for the eighteenth qualifying period, July 2019,

• (xix) for the nineteenth qualifying period, August 2019,

• (xx) for the twentieth qualifying period, September 2019,

• (xxi) for the twenty-first qualifying period, October 2019, and

• (xxii) for the twenty-second qualifying period, November 2019;

• (e) it does not result from a violation by the eligible entity – or a party with which the eligible entity does not deal at arm’s length that rents, directly or indirectly, the qualifying property from the eligible entity (referred to in this definition as the “specified tenant”) – of an order or decision that meets the conditions in paragraphs (a) to (d);

• (f) as a result of the order or decision, some or all of the activities of the eligible entity – or the specified tenant – at, or in connection with, the qualifying property (that it is reasonable to expect the eligible entity – or the specified tenant – would, absent the order or decision, otherwise have engaged in) are required to cease (referred to in this definition as the “restricted activities”) based, for greater certainty, on the type of activity rather than the extent to which an activity may be performed or limits placed on the time during which an activity may be performed;

• (g) it is reasonable to conclude that at least approximately 25% of the qualifying revenues of the eligible entity – or the specified tenant – for the prior reference period that were earned from, or in connection with, the qualifying property were derived from the restricted activities; and

• (c) if the qualifying period is any of the first qualifying period to the fourth qualifying period, its qualifying revenues for the current reference period are equal to or less than the specified percentage, for the qualifying period, of

• (a) the period that begins on March 15, 2020 and ends on April 11, 2020 (referred to in this section as the “first qualifying period”);

• (b) the period that begins on April 12, 2020 and ends on May 9, 2020 (referred to in this section as the “second qualifying period”);

• (c) the period that begins on May 10, 2020 and ends on June 6, 2020 (referred to in this section as the “third qualifying period”);

• (c.‍1) the period that begins on June 7, 2020 and ends on July 4, 2020 (referred to in this section as the “fourth qualifying period”);

• (c.‍2) the period that begins on July 5, 2020 and ends on August 1, 2020 (referred to in this section as the “fifth qualifying period”);

• (c.‍3) the period that begins on August 2, 2020 and ends on August 29, 2020 (referred to in this section as the “sixth qualifying period”);

• (c.‍4) the period that begins on August 30, 2020 and ends on September 26, 2020 (referred to in this section as the “seventh qualifying period”);

• (c.‍5) the period that begins on September 27, 2020 and ends on October 24, 2020 (referred to in this section as the “eighth qualifying period”);

• (c.‍6) the period that begins on October 25, 2020 and ends on November 21, 2020 (referred to in this section as the “ninth qualifying period”);

• (c.‍7) the period that begins on November 22, 2020 and ends on December 19, 2020 (referred to in this section as the “tenth qualifying period”);

• (c.‍8) the period that begins on December 20, 2020 and ends on January 16, 2021 (referred to in this section as the “eleventh qualifying period”);

• (c.‍9) the period that begins on January 17, 2021 and ends on February 13, 2021 (referred to in this section as the “twelfth qualifying period”);

• (c.‍91) the period that begins on February 14, 2021 and ends on March 13, 2021 (referred to in this section as the “thirteenth qualifying period”);

• (c.‍92) the period that begins on March 14, 2021 and ends on April 10, 2021 (referred to in this section as the “fourteenth qualifying period”);

• (c.‍93) the period that begins on April 11, 2021 and ends on May 8, 2021 (referred to in this section as the “fifteenth qualifying period”);

• (c.‍94) the period that begins on May 9, 2021 and ends on June 5, 2021 (referred to in this section as the “sixteenth qualifying period”);

• (c.‍95) the period that begins on June 6, 2021 and ends on July 3, 2021 (referred to in this section as the “seventeenth qualifying period”);

• (c.‍96) the period that begins on July 4, 2021 and ends on July 31, 2021 (referred to in this section as the “eighteenth qualifying period”);

• (c.‍97) the period that begins on August 1, 2021 and ends on August 28, 2021 (referred to in this section as the “nineteenth qualifying period”);

• (c.‍98) the period that begins on August 29, 2021 and ends on September 25, 2021 (referred to in this section as the “twentieth qualifying period”);

• (c.‍99) the period that begins on September 26, 2021 and ends on October 23, 2021 (referred to in this section as the “twenty-first qualifying period”);

• (c.‍991) the period that begins on October 24, 2021 and ends on November 20, 2021 (referred to in this section as the “twenty-second qualifying period”); and

• (d) a prescribed period that ends no later than November 30, 2021. (période d’admissibilité)

• (a) if the qualifying period is any of the eighth qualifying period to the seventeenth qualifying period,

• (a.‍1) if the qualifying period is any of the eighteenth qualifying period to the twentieth qualifying period, the percentage determined by the formula

  A + B

  where

  A

  is the eligible entity’s base percentage for the qualifying period, and

  B

  is the eligible entity’s top-up percentage for the qualifying period; and

• (b) for a qualifying period after the twentieth qualifying period, a percentage determined by regulation in respect of the eligible entity or, if there is no percentage determined by regulation for the qualifying period, nil. (pourcentage de subvention pour le loyer)

• (a) for the first qualifying period, 85%; and

• (b) for any of the second qualifying period to the fourth qualifying period, 70%.‍ (pourcentage déterminé)

• (a) for any of the fifth qualifying period to the seventh qualifying period, the result (expressed as a percentage) of the formula

• (b) for any of the eighth qualifying period to the tenth qualifying period, the greater of

• (c) for the eleventh qualifying period and each subsequent qualifying period, the eligible entity’s revenue reduction percentage for the qualifying period. (pourcentage compensatoire de baisse de revenue)

executive compensation repayment amount, of an eligible entity, means

• (a) nil, unless

  • (i) shares of the capital stock of the eligible entity are listed or traded on a stock exchange or other public market, or

  • (ii) the eligible entity is controlled by a corporation described in subparagraph (i); and

• (b) if the conditions in subparagraph (a)‍(i) or (ii) are met, the amount determined by the formula

  A × B

  where

  A

  is

  (i) a percentage assigned to the eligible entity under an agreement if

  (A) the agreement is entered into by

  (I) the eligible entity,

  (II) an eligible entity, shares of the capital stock of which are listed or traded on a stock exchange or other public market, that controls the eligible entity (referred to in this definition as the “public parent corporation”), if the public parent corporation received a deemed overpayment under subsection (2) in respect of the seventeenth qualifying period or any subsequent qualifying period, and

  (III) each other eligible entity that received a deemed overpayment under subsection (2) in respect of the seventeenth qualifying period or any subsequent qualifying period and was controlled in that period by the eligible entity or the public parent corporation, if any,

  (B) the agreement is filed in prescribed form and manner with the Minister,

  (C) the agreement assigns, for the purposes of this definition, a percentage in respect of each eligible entity referred to in clause (A) of this description,

  (D) the total of all the percentages assigned under the agreement equals 100%, and

  (E) the percentage allocated to any eligible entity under the agreement would not result in an amount allocated to the eligible entity in excess of the total of all amounts of deemed overpayments of the eligible entity under subsection (2) for the seventeenth qualifying period and any subsequent qualifying period, and

  (ii)  in any other case, 100%, and

  B

  is the lesser of

  (i) the total of all amounts each of which is an amount of a deemed overpayment under subsection (2) for each of the eligible entities described in clause (i)‍(A) of the description of A for the seventeenth qualifying period and each subsequent qualifying period, other than amounts in respect of employees on leave with pay, and

  (ii) the amount determined by the formula

  C − D

  where

  C

  is the executive remuneration of the eligible entity, or of the public parent corporation that controls the eligible entity, if any, for the 2021 calendar year (prorated based upon the number of days of the eligible entity’s, or the public parent corporation’s, fiscal periods in the calendar year, if those fiscal periods are not the calendar year), and

  D

  is the executive remuneration of the eligible entity, or of the public parent corporation that controls the eligible entity, if any, for the 2019 calendar year (prorated based upon the number of days of the eligible entity’s, or the public parent corporation’s, fiscal periods in the calendar year, if those fiscal periods are not the calendar year). (montant du remboursement de la rémunération de la haute direction)

executive remuneration, of an eligible entity, means

• (a) the total amount of compensation that is reported in the eligible entity’s Statement of Executive Compensation for Named Executive Officers pursuant to National Instrument 51-102 Continuous Disclosure Obligations, as amended from time to time, of the Canadian Securities Administrators in respect of Named Executive Officers of the eligible entity;

• (b) if paragraph (a) does not apply and the eligible entity is required to make a similar disclosure to shareholders under the laws of another jurisdiction, the amount of total compensation reported in that disclosure (if the compensation of more than five individuals is required to be reported under that disclosure, using the five most highly compensated of those individuals); and

• (c) if paragraphs (a) and (b) do not apply, the amount that would be required to be reported by the eligible entity using the methodology for preparing the Statement of Executive Compensation referred to in paragraph (a).‍ (rémunération de la haute direction)

qualifying recovery entity, for a qualifying period, means an eligible entity that meets the following conditions:

• (a) it files an application with the Minister in respect of the qualifying period in prescribed form and manner no later than 180 days after the end of the qualifying period;

• (b) it is a qualifying entity for the qualifying period;

• (c) if it is a corporation (other than a corporation that is exempt from tax under this Part), it

  • (i) is a Canadian-controlled private corporation, or

  • (ii) would be a Canadian-controlled private corporation absent the application of subsection 136(1);

• (d) if it is a partnership, throughout the qualifying period it is the case that

  A ≤ 0.‍5B

  where

  A

  is the total of all amounts, each of which is the fair market value of an interest in the partnership held — directly or indirectly, through one or more partnerships — by

  (i) a person or partnership other than an eligible entity, or

  (ii) a corporation, other than a corporation that

  (A) is exempt from tax under this Part, or

  (B) is described in subparagraph (c)‍(i) or (ii), and

  B

  is the total fair market value of all interests in the partnership; and

• (e) it has a revenue reduction percentage

  • (i) greater than 0%, if it is the seventeenth qualifying period, or

  • (ii) greater than 10%, if it is any of the eighteenth qualifying period to the twenty-second qualifying period. (entité de relance admissible)

recovery wage subsidy rate, for a qualifying period, means

• (a) for any of the seventeenth qualifying period to the nineteenth qualifying period, 50%;

• (b) for the twentieth qualifying period, 40%;

• (c) for the twenty-first qualifying period, 30%; and

• (d) for the twenty-second qualifying period, 20%. (taux de subvention salariale de relance)

total base period remuneration, of an eligible entity, means the total of all amounts, each of which is for an eligible employee in respect of a week in the fourteenth qualifying period, equal to the least of

• (a) $1,129,

• (b) the eligible remuneration paid to the eligible employee in respect of the week,

• (c) if the eligible employee does not deal at arm’s length with the eligible entity in the qualifying period, the baseline remuneration in respect of the eligible employee determined for that week, and

• (d) if the eligible employee is on leave with pay in the week, nil. (rémunération totale de la période de base)

total current period remuneration, of an eligible entity for a qualifying period, means the total of all amounts, each of which is for an eligible employee in respect of a week in the qualifying period, equal to the least of

• (a) $1,129,

• (b) the eligible remuneration paid to the eligible employee in respect of the week,

• (c) if the eligible employee does not deal at arm’s length with the eligible entity in the qualifying period, the baseline remuneration in respect of the eligible employee determined for that week, and

• (d) if the eligible employee is on leave with pay in the week, nil. (rémunération totale de la période actuelle)

Canada recovery hiring program

(2.‍2) For a qualifying recovery entity for a qualifying period, an overpayment on account of the qualifying entity’s liability under this Part for the taxation year in which the qualifying period ends is deemed to have arisen during the qualifying period in an amount determined by the formula

When assistance received

(3) For the purposes of this Act other than this section, and for greater certainty, an amount that an eligible entity is deemed under any of subsections (2) to (2.‍2) to have overpaid is assistance received by it from a government immediately before the end of the qualifying period to which it relates.

• (d) if the seller meets any of the following conditions, the eligible entity is deemed to meet that condition:

  • (i) either of the conditions in paragraph (d) of the definition qualifying entity in subsection (1), and

  • (ii) both of the conditions in subparagraph (c)‍(ii), or the condition in subparagraph (c)‍(iii), of the definition qualifying renter in subsection (1); and

• (a) the amount of any deemed overpayment by an eligible entity under any of subsections (2) to (2.‍2) in respect of a qualifying period cannot exceed the amount claimed by the eligible entity in the application referred to in paragraph (a) of the definition qualifying entity in subsection (1) — or paragraph (a) of the definition qualifying renter in subsection (1) or paragraph (a) of the definition qualifying recovery entity in subsection (1) — in respect of that qualifying period; and

• (b) if an eligible employee is employed in a week by two or more qualifying entities that do not deal with each other at arm’s length, the total amount of the deemed overpayment under subsection (2) or (2.‍2) in respect of the eligible employee for that week shall not exceed the amount that would arise if the eligible employee’s eligible remuneration for that week were paid by one qualifying entity.

• (ii) in respect of the fifth qualifying period and subsequent qualifying periods, increase the amount of a deemed overpayment under subsection (2), or

Anti-avoidance — recovery wage subsidy

(6.‍1) Notwithstanding any other provision in this section, the total current period remuneration of an eligible entity for a qualifying period is deemed to be equal to the total base period remuneration of the eligible entity, if

• (a) the eligible entity, or a person or partnership not dealing at arm’s length with the eligible entity, enters into a transaction or participates in an event (or a series of transactions or events) or takes an action (or fails to take an action) that has the effect of increasing the difference between the total current period remuneration and the total base period remuneration of the eligible entity for the qualifying period; and

• (b) it is reasonable to conclude that one of the main purposes of the transaction, event, series or action in paragraph (a) is to increase the amount of a deemed overpayment under subsection (2.‍2).

• (a) for the purposes of subsections (2) to (2.‍2) and subsections 152(3.‍4) and 160.‍1(1), to be a taxpayer; and

• (b) for the purposes of subsections (2) to (2.‍2), to have a liability under this Part for a taxation year in which a qualifying period ends.

• (i) the percentages in subparagraphs (a)‍(i), (b)‍(i), (c)‍(i), (d)‍(i), (e)‍(i), (f)‍(i), (g)‍(i), (h)‍(i), (i)‍(i) and (j)‍(i), and

• (ii) the factors in subparagraphs (a)‍(ii), (b)‍(ii), (c)‍(ii), (d)‍(ii), (e)‍(ii), (f)‍(ii), (g)‍(ii), (h)‍(ii), (i)‍(ii) and (j)‍(ii); and

• (b) the definition rent subsidy percentage in subsection (1), the factors and percentages in paragraphs (a) and (a.‍1) of that definition;

• (b.‍1) the definition recovery wage subsidy rate in subsection (1), the percentages in that definition; and

Special case

(9.‍1) For the purposes of paragraph (9)‍(b), if the particular qualifying period is the eleventh qualifying period, then the immediately preceding qualifying period is deemed to be the ninth qualifying period.

Greater of wage and recovery subsidies

(9.‍2) For a qualifying period,

• (a) if the amount of any deemed overpayment under subsection (2) is equal to or greater than the amount of any deemed overpayment under subsection (2.‍2), the amount of any deemed overpayment under subsection (2.‍2) is deemed to be nil; and

• (b) if the amount of any deemed overpayment under subsection (2.‍2) is greater than the amount of any deemed overpayment under subsection (2), the amount of any deemed overpayment under subsection (2) is deemed to be nil.

Executive compensation

(14) The amount of a refund made by the Minister to an eligible entity in respect of a deemed overpayment under subsection (2) on a particular date under subsection 164(1.‍6), in respect of any of the seventeenth qualifying period to the twenty-second qualifying period, is deemed to be an amount that has been refunded to the eligible entity on that particular date (for the taxation year in which the refund was made) in excess of the amount to which the eligible entity was entitled as a refund under this Act to the extent of the lesser of the amount of the refund and the amount determined by the formula

Foreign currency — executive remuneration

(15) For the purposes of paragraphs 261(2)‍(b) and (5)‍(c), amounts referred to in the definition executive remuneration in subsection (1) are deemed to arise on the last day of the eligible entity’s fiscal period to which the amount relates and not at any other time.

• (III) the total of all amounts each of which is an amount deducted under section 110.‍6 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

• (III) the total of all amounts each of which is an amount deducted under section 110.‍6 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

• Foreign affiliate dumping — immigrating corporation

  (c.‍3) if the taxpayer is a corporation that was, immediately before the particular time, controlled by one non-resident person or, if no single non-resident person controlled the CRIC, a group of non-resident persons not dealing with each other at arm’s length (in this section, that one non-resident person, or each member of the group of non-resident persons, as the case may be, is referred to as a “parent”, and the group of non-resident persons, if any, is referred to as the “group of parents”) and the taxpayer owned, immediately before the particular time, one or more shares of one or more non-resident corporations (each of which is in this paragraph referred to as a “subject affiliate”) that, immediately after the particular time, were — or that became, as part of a transaction or event or series of transactions or events that includes the taxpayer having become resident in Canada — foreign affiliates of the taxpayer, then

• (ii) for the purposes of Part XIII, the taxpayer is deemed, immediately after the particular time, to have paid to each parent, and each parent is deemed, immediately after the particular time, to have received from the taxpayer, a dividend in an amount determined by the formula

  (A – B) × C/D

  where

  A

  is the amount determined under clause (B) of the description of A in subparagraph (i),

  B

  is the amount determined under clause (A) of the description of A in subparagraph (i),

  C

  is the fair market value, immediately after the particular time, of the shares of the capital stock of the taxpayer that are held, directly or indirectly, by the parent, and

  D

  is the total of all amounts each of which is the fair market value, immediately after the particular time, of the shares of the capital stock of the taxpayer that are held, directly or indirectly, by a parent.

Allocation to redeemers

(5.‍3) If a trust that is a mutual fund trust throughout a taxation year paid or made payable, at any time in the taxation year, to a beneficiary an amount on a redemption by that beneficiary of a unit of the trust (in this subsection referred to as the “allocated amount”), and the beneficiary’s proceeds from the disposition of that unit do not include the allocated amount, in computing its income for the taxation year no deduction may be made by the trust in respect of

• (a) the portion of the allocated amount that would be, without reference to subsection 104(6), an amount paid out of the income (other than taxable capital gains) of the trust; and

• (b) the portion of the allocated amount determined by the formula

  A − ½(B + C − D)

  where

  A

  is the portion of the allocated amount that would be, without reference to subsection 104(6), an amount paid out of the taxable capital gains of the trust,

  B

  is the beneficiary’s proceeds from the disposition of the unit on the redemption,

  C

  is the allocated amount, and

  D

  is the amount determined by the trustee to be the beneficiary’s cost amount of that unit, using reasonable efforts to obtain the information required to determine the cost amount.

• (a) issued, after 2005 and before 2026, 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;

• (e) this section does not apply to prohibit the deduction of an amount under paragraph 110(1)‍(e).

designated employee benefit means a benefit that is  

• (a) from a group sickness or accident insurance plan;

• (b) from a group term life insurance policy;

• (c) from a private health services plan;

• (d) in respect of a counselling service described in subparagraph 6(1)‍(a)‍(iv); or

• (e) not a death benefit, but that would be a death benefit if the amounts determined for paragraphs (a) and (b) of the definition death benefit in subsection 248(1) were nil. (prestation désignée)

• (a) the only purpose of the trust is to provide benefits to, or for the benefit of, persons described in subparagraph (d)‍(i) or (ii) and all or substantially all of the total cost of the benefits is applicable to designated employee benefits;

• (c) the trust meets one of the following conditions:

• (i) the trust is required to be resident in Canada, determined without reference to section 94, or

• (ii) if the condition in subparagraph (i) is not met, it is the case that

• (A) employee benefits are provided to employees who are resident in Canada and to employees who are not resident in Canada,

• (B) one or more participating employers are employers that are resident in a country other than Canada, and

• (C) the trust is required to be resident in a country in which a participating employer resides;

• (i) an employee of a participating employer or former participating employer,

• (ii) an individual who, in respect of an employee of a participating employer or former participating employer, is (or, if the employee is deceased, was, at the time of the employee’s death)

• (e) the trust meets one of the following conditions:

  • (i) it contains at least one class of beneficiaries where

    • (A) the members of the class represent at least 25% of all of the beneficiaries of the trust who are employees of the participating employers under the trust, and

    • (B) either of the following conditions is met:

      • (I) at least 75% of the members of the class are not key employees of any of the participating employers under the trust, or

      • (II) the contributions to the trust in respect of key employees who deal at arm’s length with their employer are determined in connection with a collective bargaining agreement, or

  • (ii) in respect of the private health services plan under the trust, the total cost of benefits provided to each key employee (and to persons described in subparagraph (2)‍(d)‍(ii) in respect of the key employee) in relation to the year does not exceed the amount determined by the formula

    $2,500 × A(B/C)

    where

    A

    is the total number of persons each of whom

    (A) is a person to whom designated employee benefits are provided under the plan, and

    (B) is the key employee or a person described in subparagraph (2)‍(d)‍(ii) in respect of the key employee,

    B

    is the number of days in the year that the key employee was employed on a full-time basis by an employer that participates in the plan, and

    C

    is the number of days in the year;

• (i) trustees who do not deal at arm’s length with one or more participating employers must not constitute the majority of the trustees of the trust.

• (a) is not operated in accordance with the terms required by subsection (2) to govern the trust, unless it is reasonable to conclude that its trustees neither knew nor ought to have known that designated employee benefits have been provided to, or contributions have been made in respect of, beneficiaries other than those described in subparagraph (2)‍(d)‍(i) or (ii); or

• (b) provides any benefit for which, if the benefit had been paid directly to the employee and not out of the trust, the contributions or premiums would not be deductible in computing the income of an employer in respect of any taxation year.

Deductibility — collectively bargained or similar agreement

(6) Despite subsection (4) and paragraph 18(9)‍(a), an employer may deduct in computing its income for a taxation year the amount that it is required to contribute for the year to an employee life and health trust if the following conditions are met at the time that the contribution is made:

• (a) the employer contributes to the trust in accordance with a contribution formula that does not provide for any variation in contributions determined by reference to the financial experience of the trust and either of the following conditions is met:

  • (i) if there is a collective bargaining agreement, the trust provides benefits

    • (A) negotiated under the collective bargaining agreement, or

    • (B) under a participation agreement that are substantially the same as under the collective bargaining agreement, or

  • (ii) in any other case, the trust provides benefits in accordance with an arrangement that meets the following conditions:

    • (A) there is a legal requirement for each employer to participate in accordance with the terms and conditions that govern the trust,

    • (B) there are a minimum of 50 beneficiaries under the trust who are employees of the participating employers in respect of the trust, and

    • (C) each employee who is a beneficiary under the trust deals at arm’s length with each participating employer in respect of the trust; and

• (b) contributions that are to be made by each employer are determined, in whole or in part, by reference to the number of hours worked by individual employees of the employer or some other measure that is specific to each employee with respect to whom contributions are made to the trust.

Conditions — deemed employee life and health trust

(14) Subsection (15) applies in respect of a trust if

• (a) the trust was established before February 28, 2018;

• (b) the contributions to the trust are determined in connection with a collective bargaining agreement;

• (c) all or substantially all of the employee benefits provided by the trust are designated employee benefits; and

• (d) the trust elects in prescribed form and manner that subsection (15) applies as of a particular date after 2018.

Deemed employee life and health trust

(15) If this subsection applies in respect of a trust,

• (a) the trust is deemed for the purposes of the Act to be an employee life and health trust from the particular date referred to in paragraph (14)‍(d) until the earliest of

  • (i) the end of 2022,

  • (ii) the day that the trust satisfies the conditions in subsection (2), and

  • (iii) any day on which the condition in paragraph (14)‍(c) is not satisfied; and

• (b) at any time that the trust is an employee life and health trust because of paragraph (a),

  • (i) subsection 111(7.‍5) applies to the trust as if the reference in paragraph (b) of that subsection to “subsection 144.‍1(3)” were read as a reference to “paragraph 144.‍1(3)‍(b)”, and

  • (ii) subsection (3) applies to the trust without reference to its paragraph (a).