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Bill C-47

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First Session, Forty-fourth Parliament,

70-71 Elizabeth II – 1 Charles III, 2021-2022-2023

HOUSE OF COMMONS OF CANADA

BILL C-47
An Act to implement certain provisions of the budget tabled in Parliament on March 28, 2023

FIRST READING, April 20, 2023

DEPUTY PRIME MINISTER AND MINISTER OF FINANCE

91137


RECOMMENDATION

Her Excellency the Governor General 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 March 28, 2023”.

SUMMARY

Part 1 implements certain measures in respect of the Income Tax Act and the Income Tax Regulations by

(a)enabling the Canada Revenue Agency (CRA) to use electronic certification of tax and information returns and requiring taxpayers to file electronically in certain circumstances;

(b)doubling the maximum deduction for tradespeople’s tools from $500 to $1,000;

(c)providing that any gain on the disposition of a right to acquire Canadian housing property within a one-year period of its acquisition is treated as business income;

(d)excluding from a taxpayer’s income certain benefits for Canadian Forces members, veterans and their spouses or common-law partners;

(e)exempting from taxation any income earned by the Band Class Settlement Trust in accordance with section 24.‍05 of the Settlement Agreement entered into on January 18, 2023 relating to the attendance of day scholars at residential schools;

(f)providing an additional payment of the Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit equal to double the amount of the regular January 2023 payment;

(g)providing for automatic, quarterly advance payments of the Canada Workers Benefit;

(h)allowing divorced and separated spouses to open joint Registered Educational Savings Plans and increasing educational assistance amounts under those plans;

(i)extending, by ‚three years, the ability of a qualifying family member to be the plan holder of an individual’s Registered Disability Savings Plan and expanding the definition of “qualifying family member” to include a sister or a brother of the individual;

(j)allowing defined contribution registered pension plans to correct contribution errors and requiring that the contributions or refunds are reported to the CRA for the purpose of correcting the RRSP deduction limit;

(k)modifying reporting requirements in respect of reportable transactions, introducing reporting requirements for notifiable transactions and providing reporting requirements with respect to uncertain tax treatments, as well as extending the reassessment periods applicable to those transactions and creating or modifying penalties for non-compliance with those requirements;

(l)allowing the CRA to share taxpayer information for the purposes of the Canadian Dental Care Plan;

(m)expanding the definition of “dividend rental arrangement” to include “specified hedging transactions” carried out in whole or in part by registered securities dealers;

(n)implementing the Model Reporting Rules for Digital Platforms developed by the Organisation for Economic Co-operation and Development;

(o)requiring annual reporting by financial institutions of the fair market value of registered retirement savings plans and registered retirement income funds;

(p)expanding the permissible borrowing by defined benefit pension plans; and

(q)implementing a number of technical amendments to correct mistakes or inconsistencies and to better align the law with its intended policy objectives.

It also makes related and consequential amendments to the Excise Tax Act, the Tax Rebate Discounting Act, the Air Travellers Security Charge Act, the Excise Act, 2001, Part 1 of the Greenhouse Gas Pollution Pricing Act and the Electronic Filing and Provision of Information (GST/HST) Regulations.

Part 2 implements certain measures in respect of the Excise Tax Act and a related text by

(a)clarifying that the international transportation of money benefits from Goods and Services Tax/Harmonized Sales Tax (GST/HST) relief and other special rules in the same manner as a service of internationally transporting other kinds of freight;

(b)permitting a pension entity, in specific circumstances, to claim the pension entity rebate or an input tax credit, or to make the pension entity rebate election, after the end of the two-year limitation period;

(c)specifying that cryptoasset mining is generally not considered a supply for GST/HST purposes; and

(d)ensuring that payment card clearing services are excluded from the definition “financial service” under the GST/HST legislation.

Part 3 amends the Excise Act, the Excise Act, 2001 and the Air Travellers Security Charge Act in order to implement two measures.

Division 1 of Part 3 amends the Excise Act and the Excise Act, 2001 in order to temporarily cap the inflation adjustment for excise duties on beer, spirits and wine at two per cent, for one year only, as of April 1, 2023.

Division 2 of Part 3 amends the Air Travellers Security Charge Act to increase the air travellers security charge that is applicable to air travel that includes a chargeable emplanement after April 2024 and for which any payment is made after April 2024.

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

Division 1 of Part 4 amends the Bank Act to strengthen the regime for dealing with complaints against banks and authorized foreign banks by, among other things, providing for the designation of a not-for-profit body corporate to be the sole external complaints body. It also makes consequential amendments to the Financial Consumer Agency of Canada Act and related amendments to the Financial Consumer Protection Framework Regulations.

Division 2 of Part 4 amends the Pension Benefits Standards Act, 1985 to, among other things, provide for variable life benefits under a defined contribution provision of a pension plan and amends the Pooled Registered Pension Plans Act to, among other things, provide for variable life payments under pooled registered pension plans. It also makes a consequential amendment to the Canadian Human Rights Act.

Division 3 of Part 4 contains measures that are related to money laundering and to digital assets and other measures.

Subdivision A of Division 3 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to, among other things,

(a)require persons or entities referred to in section 5 of that Act to report to the Financial Transactions and Reports Analysis Centre of Canada information that is related to a disclosure made under the Special Economic Measures Act or the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law);

(b)strengthen the registration framework for persons or entities referred in paragraphs 5(h) and (h.‍1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, which are often referred to as money services businesses;

(c)create two new offences relating to persons or entities who engage in activities for which they are not registered under that Act and the structuring of financial transactions undertaken to avoid reporting obligations under that Act, as well as a new offence relating to reprisals by employers against employees who fulfill obligations under that Act;

(d)facilitate the sharing, between the Minister of Finance, the Office of the Superintendent of Financial Institutions and the Financial Transactions and Reports Analysis Centre of Canada, of information that relates to their respective mandates; and

(e)authorize the Minister of Finance to issue directives to persons and entities referred in section 5 of that Act in respect of risks relating to the financing of threats to the security of Canada.

Subdivision A also amends the Budget Implementation Act, 2021, No. 1 in relation to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

Subdivision B of Division 3 amends the Criminal Code to provide for a new warrant authorizing a peace officer or other person named in the warrant to search for and seize digital assets, including virtual currency, as well as to expand the list of offences on the basis of which an examination of information obtained by the Minister of National Revenue under various tax statutes may be authorized. The subdivision also makes related amendments to other Acts.

Division 4 of Part 4 amends the Customs Tariff to extend the expiry date of the General Preferential Tariff and Least Developed Country Tariff to December 31, 2034 and to create a new General Preferential Tariff Plus tariff treatment that will expire on the same date. The Division also aligns direct shipment requirements for tariff treatments under that Act with those that apply to free trade agreements.

Division 5 of Part 4 amends the Customs Tariff to remove Belarus and Russia from the List of Countries entitled to Most-Favoured-Nation tariff treatment.

Division 6 of Part 4 allows the Bank of Canada to apply, despite sections 27 and 27.‍1 of the Bank of Canada Act, any of its ascertained surplus to its retained earnings until its retained earnings are equal to zero or the ascertained surplus applied to its retained earnings is equal to the losses it incurred from the purchase of securities as part of the Government of Canada Bond Purchase Program.

Division 7 of Part 4 enacts the Canada Innovation Corporation Act. That Act continues the Canada Innovation Corporation, which was established under another Act, as a parent Crown corporation, sets out the Corporation’s purpose to maximize business investment in research and development across all sectors of the economy and in all regions of Canada to promote innovation-driven economic growth and includes transitional provisions. The Division also makes consequential and related amendments to other Acts.

Division 8 of Part 4 amends the Federal-Provincial Fiscal Arrangements Act to authorize additional payments to the provinces and territories.

Division 9 of Part 4 amends the Federal-Provincial Fiscal Arrangements Act to renew the authority to make Equalization and Territorial Formula Financing payments for another five-year period beginning on April 1, 2024 and makes a technical change to improve the accuracy of the programs. It also makes a technical change to the calculation of fiscal stabilization payments.

Division 10 of Part 4 amends the Special Economic Measures Act, the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law) to strengthen Canada’s ability to take economic measures against certain persons.

Division 11 of Part 4 amends the Privileges and Immunities (North Atlantic Treaty Organisation) Act to, among other things, enable the Paris Protocol to be implemented in Canada.

Division 12 of Part 4 amends the Service Fees Act to, among other things, clarify the definition “fee”, exempt certain fees from the application of that Act, make certain exceptions in that Act applicable only with the approval of the President of the Treasury Board, make certain changes to the annual adjustment provisions and provide authority for the President of the Treasury Board to amend the regulations made under section 22 of that Act by taking into account the factors established by regulations.

It also amends section 25.‍1 of the Canadian Food Inspection Agency Act to provide for the application of sections 16 to 18 of the Service Fees Act to low-materiality fees, within the meaning of the Service Fees Act, that are fixed under section 24 or 25 of the Canadian Food Inspection Agency Act.

Division 13 of Part 4 amends the Canada Pension Plan to allow the Minister of National Revenue to make available information to the Minister of Employment and Social Development that is necessary for the purpose of policy analysis, research or evaluation related to the administration of that Act.

Division 14 of Part 4 amends the Department of Employment and Social Development Act to grant the Minister of Employment and Social Development the authority to collect and use Social Insurance Numbers for the purposes of administering or enforcing any Act, program or activity in respect of which the administration or enforcement is the responsibility of the Minister.

Division 15 of Part 4 amends the Canada Labour Code in respect of leave related to the death or disappearance of a child to, among other things, increase the maximum length of that leave from 104 weeks to 156 weeks and to repeal paragraph 206.‍5(4)‍(b) of that Act.

Division 16 of Part 4 amends the Immigration and Refugee Protection Act to provide that a claim for refugee protection made by a person inside Canada must be made in person and, with regard to a claim made by the person other than at a port of entry, that the Minister of Citizenship and Immigration may specify the documents and information to be provided and the form and manner in which they are to be provided.

Division 17 of Part 4 amends the Immigration and Refugee Protection Act to clarify that the Minister of Citizenship and Immigration may give instructions in respect of an application to sponsor a person who applies for a visa as a Convention refugee, within the meaning of that Act, or as a person in similar circumstances.

Division 18 of Part 4 amends the College of Immigration and Citizenship Consultants Act to, among other things,

(a)provide that the College of Immigration and Citizenship Consultants may seek an order authorizing it to administer the property of any licensee of the College who is not able to perform their activities as an immigration and citizenship consultant;

(b)extend immunity against proceedings for damages to directors, employees and agents and mandataries of the College, among others;

(c)authorize the College to enter into information-sharing agreements or arrangements with any entity, including federal or provincial government institutions; and

(d)expand the areas in respect of which the Governor in Council may authorize the College to make by-laws.

The Division also makes related amendments to the Citizenship Act and the Immigration and Refugee Protection Act to clarify that any person who is the subject of a notice of violation issued under either of those Acts has the right to request a review of the notice or the administrative monetary penalty set out in the notice.

Division 19 of Part 4 amends the Citizenship Act to, among other things,

(a)grant the Minister responsible for the administration and enforcement of that Act the power to collect biometric information from persons who make an application under that Act — and to use, verify, retain and disclose that information — in accordance with the regulations;

(b)authorize that Minister to administer and enforce that Act using electronic means, including by using an automated system; and

(c)grant that Minister the power to make regulations requiring persons who make an application or who provide documents, information or evidence under that Act to do so using electronic means.

Division 20 of Part 4 amends the Yukon Act to authorize the Minister of Northern Affairs to take any measures on certain public real property that the Minister considers necessary to prevent, counteract, mitigate or remedy any adverse effect on persons, property or the environment.

Subdivision A of Division 21 of Part 4 amends the Marine Liability Act to, among other things,

(a)increase the maximum liability for certain claims involving a ship of less than 300 gross tonnage;

(b)establish the maximum liability for claims involving air cushion vehicles;

(c)remove all references to the Hamburg Rules;

(d)extend the application of the International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001 to non-seagoing vessels;

(e)provide for public notice requirements relating to the constitution of limitation funds under that Act;

(f)clarify that the owner of a ship is liable for economic loss related to fishing, hunting, trapping or harvesting suffered by an Indigenous group, community or people or suffered by a member of such a group, community or people; and

(g)expand the compensation regime of the Ship-source Oil Pollution Fund to include certain future losses.

Subdivision B of Division 21 amends the Canada Shipping Act, 2001 to, among other things,

(a)expand the application of Part 1 of that Act in relation to certain pleasure craft;

(b)expand the exemption powers of the Minister of Transport and the Minister of Fisheries and Oceans;

(c)allow the owner of a Canadian vessel to enter into an arrangement with a qualified person under which that person is the authorized representative of the vessel;

(d)give the Marine Technical Review Board jurisdiction to make decisions on applications for exemptions from interim orders;

(e)authorize the Governor in Council to incorporate by reference in certain regulations material that the Minister of Transport produces;

(f)broaden the Governor in Council’s power respecting fees, charges, costs or expenses to be paid in relation to the administration and enforcement of matters under that Act for which the Minister of Transport is responsible;

(g)increase the maximum amount of fines for certain offences;

(h)provide authority, in certain circumstances, for the Chief Registrar to refuse to issue a certificate of registry and for the Minister of Transport to refuse to issue a pleasure craft licence;

(i)authorize the Governor in Council to make regulations respecting emergency services;

(j)authorize the Minister of Transport to, among other things,

(i)direct a master or crew member to cease operations,

(ii)authorize the Deputy Minister of Transport to make interim orders in response to risks to marine safety or to the marine environment, and

(iii)direct a port authority or a person in charge of a port authority or place to authorize vessels to proceed to a place selected by the Minister; and

(k)permit designating as violations the contravention of certain provisions of Parts 5 and 10 of that Act and the regulations made under those Parts.

The Subdivision also makes a related amendment to the Oil Tanker Moratorium Act.

Subdivision C of Division 21 amends the Wrecked, Abandoned or Hazardous Vessels Act to, among other things, establish the Vessel Remediation Fund in the accounts of Canada and provide the Minister of Fisheries and Oceans with certain powers in relation to the detention of vessels.

Division 22 of Part 4 amends the Canada Transportation Act to, among other things,

(a)allow the Governor in Council to require air carriers to publish information respecting their performance on their Internet site;

(b)permit the sharing of information to ensure the proper functioning of the national transportation system or to increase its efficiency, while ensuring the confidentiality of that information;

(c)allow the Minister of Transport to require certain persons to provide certain information to the Minister if the Minister is of the opinion that there exists an unusual and significant disruption to the effective continued operation of the national transportation system;

(d)establish a new zone in Manitoba, Saskatchewan and Alberta, in which any interswitching that occurs is subject to the rate determined by the Canadian Transportation Agency, for a period of 18 months; and

(e)broaden the scope of the administrative monetary penalties scheme.

Division 23 of Part 4 amends the Canada Transportation Act to, among other things,

(a)broaden the authority of the Canadian Transportation Agency to set fees and charges to recover its costs;

(b)replace the current process for resolving air travel complaints with a more streamlined process designed to result in more timely decisions;

(c)impose a greater burden of proof on air carriers where it is presumed that compensation is payable to a complainant unless the air carrier proves the contrary;

(d)require air carriers to establish an internal process for dealing with air travel claims;

(e)modify the Agency’s regulation-making powers with respect to air carriers’ obligations towards passengers; and

(f)enhance the Agency’s enforcement powers with respect to the air transportation sector.

Division 24 of Part 4 amends the Customs Act to, among other things,

(a)allow a person arriving in Canada to present themselves to the Canada Border Services Agency by a means of telecommunication, if that manner of presenting is made available at the customs office at which they are presenting themselves; and

(b)subject to the regulations, require that the operator of a commercial aircraft arriving in Canada ensure that baggage on board the aircraft is transported without delay to the nearest international baggage area.

The Division also makes a related amendment to the Quarantine Act.

Division 25 of Part 4 amends the National Research Council Act to, among other things, provide that the National Research Council of Canada may procure goods and services, including goods and services relating to construction and to research-related digital and information technology. It also establishes a new Procurement Oversight Board.

Division 26 of Part 4 amends the Patent Act to, among other things,

(a)authorize the Commissioner of Patents to grant an additional term for a patent if certain conditions are met;

(b)authorize the Governor in Council to make regulations respecting the number of days that is to be subtracted in determining the duration of an additional term; and

(c)authorize the Commissioner of Patents and the Federal Court to shorten the duration of an additional term if the duration as previously determined is longer than is authorized.

Division 27 of Part 4 amends the Food and Drugs Act to extend measures regarding therapeutic products to natural health products in order to, among other things,

(a)strengthen the safety oversight of natural health products throughout their life cycle; and

(b)promote greater confidence in the oversight of natural health products by increasing transparency.

Division 28 of Part 4 amends the Food and Drugs Act to, among other things, prohibit

(a)the sale of a cosmetic unless its safety can be established without relying on data derived from a test conducted on an animal that could cause pain, suffering or injury, whether physical or mental, to the animal, subject to certain exceptions;

(b)the conduct of a test on an animal that could cause pain, suffering or injury, whether physical or mental, to the animal if the purpose of the test is to meet a legislative requirement that relates to cosmetics; and

(c)deceptive or misleading claims, on the label of or in an advertisement for a cosmetic, with respect to testing on animals.

Division 29 of Part 4 enacts the Dental Care Measures Act.

Division 30 of Part 4 amends subsection 41(1) of the Canada Post Corporation Act, in response to the decision in R. v. Gorman, to limit the Canada Post Corporation’s authority to open mail other than letters.

Division 31 of Part 4 expresses the assent of the Parliament of Canada to the issuing by His Majesty of a Royal Proclamation under the Great Seal of Canada establishing for Canada the applicable Royal Style and Titles.

Division 32 of Part 4 amends the Public Sector Pension Investment Board Act to provide that the Public Sector Pension Investment Board may incorporate a subsidiary for the purpose of providing investment management services to the Canada Growth Fund Inc. It also amends the Fall Economic Statement Implementation Act, 2022 to increase the amount that may be paid out of the Consolidated Revenue Fund on the requisition of the Minister of Finance for the acquisition of shares of the Canada Growth Fund Inc. and to provide that the Canada Growth Fund Inc. is not an agent of His Majesty in right of Canada.

Division 33 of Part 4 amends the Office of the Superintendent of Financial Institutions Act, the Trust and Loan Companies Act, the Bank Act and the Insurance Companies Act to, among other things,

(a)expand the mandate of the Office of the Superintendent of Financial Institutions to include the supervision of federal financial institutions in order to determine whether they have adequate policies and procedures to protect themselves against threats to their integrity or security; and

(b)expand the Superintendent of Financial Institutions’ powers to issue directions to, and to take control of, a federal financial institution in certain circumstances.

It also makes a consequential amendment to the Winding-up and Restructuring Act.

Division 34 of Part 4 amends the Criminal Code to, among other things, lower the criminal rate of interest calculated in respect of an agreement or arrangement and to express that rate as an annual percentage rate. It also authorizes the Governor in Council, by regulation, to fix a limit on the total cost of borrowing under a payday loan agreement. Finally, it provides for transitional provisions.

Division 35 of Part 4 amends the Employment Insurance Act to extend, until October 26, 2024, the increase in the maximum number of weeks for which benefits may be paid in a benefit period to certain seasonal workers.

Division 36 of Part 4 amends the Canadian Environmental Protection Act, 1999 to, among other things,

(a)establish an account in the accounts of Canada to be called the Environmental Economic Instruments Fund, for the purpose of administering amounts received as contributions to certain funding programs under the responsibility of the Minister of the Environment; and

(b)replace references to “tradeable units” with references to “compliance units”.

It also makes consequential amendments to the Canada Emission Reduction Incentives Agency Act.

Division 37 of Part 4 amends the Canada Deposit Insurance Corporation Act to clarify that the Canada Deposit Insurance Corporation may administer any contract related to deposit insurance entered into by the Minister of Finance and to allow the Minister to increase the deposit insurance coverage limit until April 30, 2024.

Division 38 of Part 4 amends the Department of Employment and Social Development Act to, among other things,

(a)establish the Employment Insurance Board of Appeal to hear appeals of decisions made under the Employment Insurance Act instead of the Employment Insurance Section of the General Division of the Social Security Tribunal; and

(b)eliminate the requirement for leave to appeal decisions relating to the Employment Insurance Act to the Appeal Division of the Tribunal.

It also makes consequential amendments to other Acts.

Division 39 of Part 4 amends the Canada Elections Act to provide for a national, uniform, exclusive and complete regime applicable to registered parties and eligible parties respecting their collection, use, disclosure, retention and disposal of personal information.

Available on the House of Commons website at the following address:
www.ourcommons.ca


TABLE OF PROVISIONS

An Act to implement certain provisions of the budget tabled in Parliament on March 28, 2023
Short Title
1

Budget Implementation Act, 2023, No. 1

PART 1
Amendments to the Income Tax Act and Other Legislation
2
PART 2
GST/HST Measures
114
PART 3
Amendments to the Excise Act, the Excise Act, 2001 and the Air Travellers Security Charge Act
DIVISION 1
Excise Act and Excise Act, 2001 (Alcohol Products)
124
DIVISION 2
Air Travellers Security Charge Act (Charge Rates)
127
PART 4
Various Measures
DIVISION 1
Bank Act
128
DIVISION 2
Private Sector Pension Plans
148
DIVISION 3
Measures Related to Money Laundering and to Digital Assets and Other Measures
181
DIVISION 4
Preferential Tariff Programs for Developing Countries
229
DIVISION 5
Removal of Most-Favoured-Nation Tariff Treatment for Belarus and Russia
235
DIVISION 6
Non-application of Sections 27 and 27.‍1 of the Bank of Canada Act
237
DIVISION 7
Canada Innovation Corporation Act
238

Enactment of Act

An Act respecting the Canada Innovation Corporation
Alternative Title
1

Alternative title

Interpretation
2

Definitions

3

Inconsistency

Designation of Minister
4

Order in council

Continuation and Status
5

Continuation

6

Head office

7

Not Crown agent

8

Capacity

Purpose and Functions
9

Purpose

10

Functions

Board, Chief Executive Officer and Employees
11

Composition of Board

12

Appointment of directors

13

Appointment of chief executive officer

14

Attendance of chief executive officer at meetings

15

Accident compensation

16

Guidelines

17

Evaluation committee

Miscellaneous Provisions
18

Restriction on directives

19

Disclosure of information to federal institutions

20

Payments out of Consolidated Revenue Fund

21

Payments to Receiver General

22

Financial year

23

Quarterly financial reports

24

Annual reports

Transitional Provisions
25

Definitions

26

Copy of order provided to Director

27

Transfer of shares

28

Chairperson’s interim powers

29

Rights preserved

30

Industrial Research Assistance Program

31

Transfer of appropriations

32

Transfer of rights, property and obligations

33

Transfer of powers, duties and functions

34

Information about Industrial Research Assistance Program

35

Regulations

DIVISION 8
Federal-Provincial Fiscal Arrangements Act (Canada Health Transfer)
242
DIVISION 9
Federal-Provincial Fiscal Arrangements Act (Equalization and Territorial Financing Renewal and Other Amendments)
243
DIVISION 10
Economic Sanctions
252
DIVISION 11
Privileges and Immunities (North Atlantic Treaty Organisation) Act
265
DIVISION 12
Service Fees Act
270
DIVISION 13
Canada Pension Plan
280
DIVISION 14
Department of Employment and Social Development Act
281
DIVISION 15
Canada Labour Code
282
DIVISION 16
Immigration and Refugee Protection Act (Claims for Refugee Protection)
284
DIVISION 17
Immigration and Refugee Protection Act (Sponsorship Applications)
286
DIVISION 18
College of Immigration and Citizenship Consultants Act
287
DIVISION 19
Citizenship Act
300
DIVISION 20
Yukon Act
307
DIVISION 21
Oceans Protection Plan
308
DIVISION 22
Canada Transportation Act
436
DIVISION 23
Air Travel Complaints
452
DIVISION 24
Customs Act
475
DIVISION 25
National Research Council Act
481
DIVISION 26
Patent Act
487
DIVISION 27
Food and Drugs Act (Natural Health Products)
500
DIVISION 28
Food and Drugs Act (Cosmetics Testing on Animals)
505
DIVISION 29
Dental Care Measures Act
508
An Act respecting certain matters in relation to the Canadian Dental Care Plan
Short Title
1

Dental Care Measures Act

Definition
2

Definition of Canadian Dental Care Plan

His Majesty
3

Binding on His Majesty

Reporting
4

Obligation

5

Information return

6

Purpose of information obtained

Disclosure of Information
7

Disclosure of information

Violations
8

Violations

9

Limitation on imposition of penalty

10

Rescission or reduction of penalty

11

Recovery as debt due to His Majesty

Social Insurance Number
12

Social Insurance Number

DIVISION 30
Canada Post Corporation Act
509
DIVISION 31
Royal Style and Titles Act, 2023
510
An Act respecting the Royal Style and Titles, 2023
1

Royal Style and Titles Act, 2023

2

Assent to Royal Style and Titles

DIVISION 32
Canada Growth Fund
511
DIVISION 33
Legislation Related to Financial Institutions
517
DIVISION 34
Criminal Code
610
DIVISION 35
Employment Insurance Act
617
DIVISION 36
Canadian Environmental Protection Act, 1999
618
DIVISION 37
Canada Deposit Insurance Corporation Act
625
DIVISION 38
Employment Insurance Board of Appeal
631
DIVISION 39
Canada Elections Act
680
SCHEDULE 


1st Session, 44th Parliament,

70-71 Elizabeth II – 1 Charles III, 2021-2022-2023

HOUSE OF COMMONS OF CANADA

BILL C-47

An Act to implement certain provisions of the budget tabled in Parliament on March 28, 2023

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

Short Title

Short title

1This Act may be cited as the Budget Implementation Act, 2023, No. 1.

PART 1
Amendments to the Income Tax Act and Other Legislation

R.‍S.‍, c. 1 (5th Supp.‍)

Income Tax Act

2(1)The portion of paragraph 6(1)‍(e) of the Income Tax Act before subparagraph (i) is replaced by the following:

  • Standby charge for automobile

    (e) Insertion start if at any time in the year Insertion end an automobile Insertion start is Insertion end made available to the taxpayer, or Insertion start to a particular person who does not deal at arm’s length with Insertion end the taxpayer, Insertion start by another person (referred to in this paragraph as “the employer”) because of or as a consequence of a previous, the current or an intended office or employment of the taxpayer Insertion end , the amount, if any, by which

(2)Subparagraph 6(1)‍(e)‍(ii) of the Act is replaced by the following:

  • (ii)the total of all amounts, each of which is an amount (other than an expense related to the operation of the automobile) paid in the year by the taxpayer, or the Insertion start particular Insertion end person Insertion start who does not deal at arm’s length with Insertion end the taxpayer, Insertion start to the employer Insertion end for the use of the automobile;

(3)Subparagraph 6(1)‍(k)‍(ii) of the Act is replaced by the following:

  • (ii)amounts related to the operation (otherwise than in connection with or in the course of the taxpayer’s office or employment) of the automobile for the period or periods in the year during which the automobile was made available to the taxpayer, or a person Insertion start who does not deal at arm’s length with Insertion end the taxpayer, are paid or payable by Insertion start the employer within the meaning of paragraph (e) that made the automobile available Insertion end (in this paragraph referred to as the “payor”), and

(4)The portion of subsection 6(2) of the Act before the formula is replaced by the following:

Reasonable standby charge
(2)For the purposes of paragraph (1)‍(e), a reasonable standby charge for an automobile for the total number of days (in this subsection referred to as the “total available days”) in a taxation year during which the automobile is made available to a taxpayer, or to a person Insertion start who does not deal at arm’s length with Insertion end the taxpayer, by Insertion start a person Insertion end (referred to in this subsection as the “employer”) shall be deemed to be the amount determined by the formula

(5)Subsections (1) to (4) apply to taxation years that begin after 2022.

3(1)Subclause B(I) of the description of B in subparagraph 8(1)‍(r)‍(ii) of the Act is replaced by the following:

(I)the amount that is the total of Insertion start the first dollar amount referred to in paragraph (s) Insertion end and the amount determined for the taxation year for B in subsection 118(10), and

(2)The portion of paragraph 8(1)‍(s) of the Act before the formula is replaced by the following:

  • Deduction – tradesperson’s tools

    (s)if the taxpayer is employed as a tradesperson at any time in the taxation year, the lesser of $ Insertion start 1,000 Insertion end and the amount determined by the formula

(3)Subsection 8(10) of the Act is replaced by the following:
Certificate of employer
(10)An amount otherwise deductible for a taxation year under paragraph (1)‍(c), (f), (h) or (h.‍1) or subparagraph (1)‍(i)‍(ii) or (iii) by a taxpayer shall not be deducted unless the taxpayer’s employer Insertion start confirms in prescribed form Insertion end that the conditions set out in the applicable provision were met in the year in respect of the taxpayer Insertion start and the Insertion end form is filed with the taxpayer’s return of income for the year.

(4)Subsections (1) and (2) apply to the 2023 and subsequent taxation years.

4(1)Subsection 12(3) of the Act is replaced by the following:

Interest income
(3)Subject to subsection (4.‍1), in computing the income for a taxation year of a corporation, partnership, unit trust or any trust of which a corporation or a partnership is a beneficiary, there shall be included any interest on a debt obligation (other than interest in respect of an income bond, an income debenture, a net income stabilization account or an indexed debt obligation) that accrues to it to the end of the year, or becomes receivable or is received by it before the end of the year, to the extent that the interest was not included in computing its income for a preceding taxation year.

(2)Paragraphs (g) and (h) of the definition investment contract in subsection 12(11) of the Act are repealed.

(3)Subsection 12(13) of the Act is replaced by the following:

Definition of flipped property
(13)For the purposes of subsections (12) and (14), a flipped property of a taxpayer means a Insertion start property Insertion end (other than a property, Insertion start or a right to acquire property Insertion end , that would be inventory of the taxpayer if the definition inventory in subsection 248(1) were read without reference to subsection (12)) that Insertion start is Insertion end
  • (a)prior to its disposition by the taxpayer, Insertion start either Insertion end

    • Insertion start (i) Insertion end a housing unit located in Canada, Insertion start or Insertion end

    • Start of inserted block

      (ii)a right to acquire a housing unit located in Canada; and

      End of inserted block
  • (b)owned Insertion start or, in the case of a right to acquire, held Insertion end , by the taxpayer for less than 365 consecutive days prior to Insertion start its Insertion end disposition, other than a disposition that can reasonably be considered to occur due to, or in anticipation of, one or more of the following events:

    • Insertion start (i) Insertion end the death of the taxpayer or a person related to the taxpayer,

    • Insertion start (ii) Insertion end one or more persons related to the taxpayer becoming a member of the taxpayer’s household or the taxpayer becoming a member of the household of a related person,

    • Insertion start (iii) Insertion end the breakdown of the marriage or common-law partnership of the taxpayer if the taxpayer has been living separate and apart from their spouse or common-law partner for at least 90 days prior to the disposition,

    • Insertion start (iv) Insertion end a threat to the personal safety of the taxpayer or a related person,

    • Insertion start (v) Insertion end the taxpayer or a related person suffering from a serious illness or disability,

    • Insertion start (vi) Insertion end an eligible relocation of the taxpayer or the taxpayer’s spouse or common-law partner, if the definition eligible relocation were read without reference to the requirements for the new work location and the new residence to be in Canada,

    • Insertion start (vii) Insertion end an involuntary termination of the employment of the taxpayer or the taxpayer’s spouse or common-law partner,

    • Insertion start (viii) Insertion end the insolvency of the taxpayer, or

    • Insertion start (ix) Insertion end the destruction or expropriation of the property.

(4)Subsection (3) applies to the period throughout which a flipped property of a taxpayer is owned or held by the taxpayer in respect of a disposition that occurs after 2022.

5(1)The portion of paragraph 13(4.‍3)‍(d) of the Act before subparagraph (i) is replaced by the following:

  • (d)any amount that would, if this Act were read without reference to this subsection, be included in the cost of a property of the Insertion start transferee Insertion end included in Class 14.‍1 of Schedule II to the Income Tax Regulations (including a deemed acquisition under subsection (35)) or included in the proceeds of disposition of a property of the Insertion start transferor Insertion end included in that Class (including a deemed disposition under subsection (37)) in respect of the disposition or termination of the former property by the transferor is deemed to be

(2)Paragraph 13(42)‍(a) of the French version of the Act is replaced by the following:

  • a)pour l’application de la Insertion start présente loi Insertion end et de ses règlements (à l’exception du présent article, de l’article 20 et des dispositions réglementaires prises pour l’application de l’alinéa 20(1)a)), si la valeur de l’élément A de la formule figurant à la définition de Insertion start montant cumulatif des immobilisations admissibles Insertion end au paragraphe 14(5) avait augmenté immédiatement avant 2017 en raison de la disposition du bien immédiatement avant ce moment, le coût en capital du bien est réputé augmenter des 4/3 du montant de cette augmentation;

(3)Section 13 of the Act is amended by adding the following after subsection (42):

Transitional rule
Start of inserted block
(43)An amount is to be included in computing a taxpayer’s income from a business for a taxation year, and is deemed not to be a taxable capital gain (other than for the purposes of the definition capital dividend account in subsection 89(1)), to the extent
  • (a)the amount is part of the proceeds of disposition of eligible capital property (as defined in section 54, as it read on December 31, 2016) that is in respect of the business;

  • (b)the disposition is under an agreement between the taxpayer and a purchaser that deals at arm’s length with the taxpayer;

  • (c)the disposition occurred before March 22, 2016;

  • (d)the amount becomes receivable under the agreement after 2016 and before 2024 because of a condition of the agreement, if

    • (i)at the end of 2016, it was uncertain whether the condition would be met, and

    • (ii)the condition is met after 2016;

  • (e)the amount would, in the absence of this subsection, be a taxable capital gain;

  • (f)the amount would have been included in computing the taxpayer’s income from the business if the amount had become receivable on December 31, 2016; and

  • (g)the taxpayer files an election with the Minister, no later than the filing-due date for the taxpayer’s first taxation year that ends after August 9, 2022 to have this subsection apply in respect of the amount.

    End of inserted block

(4)Subsection (1) applies in respect of dispositions that occur after 2016.

(5)Subsections (2) and (3) are deemed to have come into force on January 1, 2017.

6(1)Subsection 15(2.‍3) of the Act is replaced by the following:

When s. 15(2) not to apply – ordinary lending business
(2.‍3)Subsection (2) does not apply to a debt that arose in the ordinary course of the creditor’s business or a loan made in the ordinary course of the lender’s ordinary business of lending money ( Insertion start other than a business of lending money if, at any time during which the loan is outstanding, less than 90% of the aggregate outstanding amount of the loans of the business is owing by borrowers that deal at arm’s length with the lender Insertion end ) where, at the time the indebtedness arose or the loan was made, bona fide arrangements were made for repayment of the debt or loan within a reasonable time.
Interpretation – partnerships
Start of inserted block
(2.‍31)For the purposes of this subsection and subsection (2.‍3),
  • (a)a person or partnership that is a member of a particular partnership that is a member of another partnership is deemed to be a member of the other partnership; and

  • (b)a borrower shall be considered to deal at arm’s length with a lender only if

    • (i)for greater certainty, the borrower and the lender deal with each other at arm’s length,

    • (ii)where either the borrower or the lender is a partnership and the other party is not, each member of the partnership deals at arm’s length with the other party, and

    • (iii)where both the borrower and the lender are partnerships, the borrower and each member of the borrower deal at arm’s length with the lender and each member of the lender.

      End of inserted block

(2)Subsection 15(5) of the English version of the Act is replaced by the following:

Automobile benefit
(5)For the purposes of subsection (1), the value of the benefit to be included in computing a shareholder’s income for a taxation year with respect to an automobile made available to the shareholder, or a person related to the shareholder, by a corporation shall (except where an amount is determined under subparagraph 6(1)‍(e)‍(i) in respect of the automobile in computing the shareholder’s income for the year) be computed on the assumption that subsections 6(1), (1.‍1), (2) and (7) apply, with such modifications as the circumstances require, and as though references therein to “the employer” were read as “the corporation”.

(3)Subsection (1) applies to loans made after 2022. Subsection (1), subsection 15(2) of the Act and all provisions of the Act relevant to the interpretation and application of subsection 15(2) of the Act also apply in respect of any portion of a particular loan made before 2023 that remains outstanding on January 1, 2023 – as if that portion were a separate loan that was made on January 1, 2023 in the same manner and on the same terms as the particular loan – if, at the time when the particular loan was made, it met the requirements of subsection 15(2.‍3) of the Act as in force at the time when the particular loan was made.

(4)Subsection (2) applies to taxation years that begin after 2022.

7Sections 15.‍1 and 15.‍2 of the Act are repealed.

8(1)Subparagraph 20(1)‍(e)‍(vi) of the Act is replaced by the following:

  • (vi)where a partnership has ceased to exist,

    • (A)no amount may be deducted by the partnership under this paragraph in computing its income for Insertion start its last fiscal period Insertion end , and

    • (B)there may be deducted for a taxation year ending Insertion start after the time that is immediately before the end of the partnership’s last fiscal period (referred to in this clause as the “particular time” Insertion end ) by any person or partnership that was a member of the partnership Insertion start at the particular time Insertion end , that proportion of the amount that would, but for this subparagraph, have been deductible under this paragraph by the partnership in the fiscal period ending in the year had it continued to exist and had the partnership interest not been redeemed, acquired or cancelled, that the fair market value of the member’s interest in the partnership Insertion start at the particular time Insertion end is of the fair market value of all the interests in the partnership Insertion start at the particular Insertion end time;

(2)The description of N in subclause 20(1)‍(l)‍(ii)‍(D)‍(II) of the Act is replaced by the following:

N
is the total of all amounts each of which is the specified reserve adjustment for a loan (other than an income bond or an income debenture) for the year or a preceding taxation year;

(3)Paragraph 20(1)‍(v) of the Act is replaced by the following:
  • Mining taxes

    (v)such amount as is allowed by regulation in respect of taxes on income from mining operations;

(4)The portion of subsection 20(14) of the Act before paragraph (a) is replaced by the following:

Accrued bond interest
(14)Where, by virtue of an assignment or other transfer of a debt obligation, other than an income bond or an income debenture, the transferee has become entitled to an amount of interest that accrued on the debt obligation for a period commencing before the time of transfer and ending at that time that is not payable until after that time, that amount

(5)The portion of subsection 20(14.‍1) of the Act before paragraph (a) is replaced by the following:

Interest on debt obligation
(14.‍1)Where a person who has issued a debt obligation, other than an income bond or an income debenture, is obligated to pay an amount that is stipulated to be interest on that debt obligation in respect of a period before its issue (in this subsection referred to as the “unearned interest amount”) and it is reasonable to consider that the person to whom the debt obligation was issued paid to the issuer consideration for the debt obligation that included an amount in respect of the unearned interest amount,

(6)Subsection (1) is deemed to have come into force on June 26, 2013.

(7)Subsection (3) applies to taxation years that end after 2007. Any assessment of a taxpayer’s tax, interest and penalties payable under the Act for any taxation year that ends before August 9, 2022 that would, in the absence of this subsection, be precluded because of subsections 152(4) to (5) of the Act is to be made to the extent necessary to take into account subsection (3) and subsection 103(1) of this Act if the taxpayer so elects in writing and files that election with the Minister of National Revenue on or before the day that is six months after the day on which this section receives royal assent.

9Paragraphs 44(1)‍(c) and (d) of the French version of the Act are replaced by the following:

  • c)si l’ancien bien est visé à l’alinéa a), avant Insertion start la fin Insertion end de la deuxième année d’imposition suivant l’année initiale ou, si elle est postérieure, Insertion start avant la fin de la période Insertion end de 24 mois Insertion start qui suit Insertion end l’année initiale;

  • d) Insertion start sinon Insertion end , avant Insertion start la fin Insertion end de la première année d’imposition suivant l’année initiale ou, si Insertion start elle Insertion end est Insertion start postérieure, avant la fin de la période Insertion end de 12 mois Insertion start qui suit Insertion end l’année initiale,

10(1)Subparagraph (c.‍1)‍(iii.‍1) of the definition principal residence in section 54 of the Act is amended by striking out “or” at the end of clause (B), by replacing “and” with “or” at the end of clause (C) and by adding the following after clause (C):

  • Start of inserted block

    (D)a trust

    • (I)a specified beneficiary of which for the year is a qualifying individual for the year in respect of the trust, and

    • (II)under which no person other than a beneficiary described in subclause (I) may receive or otherwise obtain the use of, during the beneficiary’s lifetime, any of the income or capital of the trust and the trustees are required to consider the needs of the beneficiary including, without limiting the generality of the foregoing, the comfort, care and maintenance of the beneficiary, and

      End of inserted block

(2)The definition principal residence in section 54 of the Act is amended by striking out “and” at the end of paragraph (e), by adding “and” at the end of paragraph (f) and by adding the following after paragraph (f):

  • Start of inserted block

    (g)a qualifying individual, for a taxation year in respect of a trust, means an individual who meets the following conditions:

    • (i)the individual is, in the year, any of

      • (A)the settlor of the trust,

      • (B)the child, grandchild, great grandchild, parent, grandparent, great grandparent, brother, sister, uncle, aunt, niece or nephew of the settlor or of the spouse or common-law partner or former spouse or common-law partner of the settlor, and

      • (C)the spouse or common-law partner or former spouse or common-law partner of any person described in clause (A) or (B),

    • (ii)the individual is resident in Canada during the year, and

    • (iii)an amount is deductible, or would be deductible if this Act were read without reference to paragraph 118.‍3(1)‍(c), under subsection 118.‍3(1) in computing the individual’s tax payable under this Part for the year; (résidence principale)

      End of inserted block

(3)Subsections (1) and (2) apply to taxation years that begin after 2016.

11(1)Paragraph 60(i) of the Act is replaced by the following:

  • Premium or payment under PRPP, RRSP or RRIF

    (i)any amount that is deductible under section 146 or 146.‍3 or subsection 147.‍3(13.‍1) Insertion start or 147.‍5(19) Insertion end in computing the income of the taxpayer for the year;

(2)Paragraph 60(i) of the Act is replaced by the following:

  • Premium or payment – FHSA, PRPP, RRSP or RRIF

    (i)any amount that is deductible under section 146, 146.‍3 or Insertion start 146.‍6 Insertion end or subsection 147.‍3(13.‍1) or 147.‍5(19) in computing the income of the taxpayer for the year;

(3)Subsection (1) is deemed to have come into force on December 14, 2012.

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

12(1)Paragraph 60.‍03(2)‍(a) of the Act is replaced by the following:

  • (a)the pensioner is deemed not to have received the portion of the pensioner’s pension income, qualified pension income Insertion start or an amount described in subparagraph (c)‍(i) of the definition eligible pension income in subsection (1) Insertion end , as the case may be, for the taxation year that is equal to the amount of the pensioner’s split-pension amount for that taxation year; and

(2)Paragraph 60.‍03(2)‍(b) of the Act is amended by striking out “and” at the end of subparagraph (i), by adding “and” at the end of subparagraph (ii) and by adding the following after subparagraph (ii):

  • Start of inserted block

    (iii)as an amount described in subparagraph (c)‍(i) of the definition eligible pension income in subsection (1) to the extent that the split-pension amount was received by the pensioner as an amount described in subparagraph (c)‍(i) of that definition, if the pension transferee has attained the age of 65 years before the end of the taxation year.

    End of inserted block

(3)Subsections (1) and (2) apply to the 2015 and subsequent taxation years.

13(1)The portion of subparagraph (i) of the description of C in paragraph 63(2.‍3)‍(c) of the French version of the Act before clause (A) is replaced by the following:

(i)s’il existe une personne assumant les frais d’entretien d’un enfant admissible du contribuable pour l’année, Insertion start la somme des nombres suivants Insertion end  :

(2)The portion of subparagraph (ii) of the description of C in paragraph 63(2.‍3)‍(c) of the French version of the Act before clause (A) is replaced by the following:

(ii)dans les autres cas, Insertion start la somme des nombres suivants Insertion end  :

14Paragraph 66.‍1(9)‍(f) of the Act is replaced by the following:

  • (f)all Canadian development expenses described in subparagraph (a)‍(ii) of the definition Canadian development expense in subsection 66.‍2(5) incurred by the taxpayer in respect of the well in a taxation year preceding the year, Insertion start other than Insertion end

    • Insertion start (i) Insertion end expenses referred to in paragraph (d) or (e),

    • Insertion start (ii) Insertion end restricted expenses, Insertion start and Insertion end

    • Start of inserted block

      (iii)expenses for a well referred to in paragraph (a) that are incurred

      • (A)after 2020 (including expenses that are deemed by subsection 66(12.‍66) to have been incurred on December 31, 2020), if the expenses are incurred in connection with an obligation that was committed to in writing (including a commitment to a government under the terms of a licence or permit) by the taxpayer before March 22, 2017, and

      • (B)after 2018 (including expenses that are deemed by subsection 66(12.‍66) to have been incurred on December 31, 2018), in any other case,

        End of inserted block

15The portion of the definition commercial debt obligation after paragraph (b) in subsection 80(1) of the Act is replaced by the following:

an amount in respect of the interest was or would have been deductible in computing the debtor’s income, taxable income or taxable income earned in Canada, as the case may be, if this Act were read without reference to paragraph 18(1)‍(g), subsections 18(2), (3.‍1) and (4) and section 21; (créance commerciale)

16(1)The portion of paragraph 81(1)‍(d.‍1) of the Act before subparagraph (i) is replaced by the following:

  • Canadian Forces members and veterans amounts

    (d.‍1)the total of all amounts received Insertion start or enjoyed Insertion end by the taxpayer Insertion start or the taxpayer’s spouse or common-law partner or survivor (as defined in subsection 146.‍2(1)) Insertion end in the year on account of

(2)Paragraph 81(1)‍(d.‍1) of the Act is amended by striking out “or” at the end of subparagraph (iii) and by adding the following after subparagraph (iv):

  • Start of inserted block

    (v)a benefit provided under the Veterans Health Care Regulations,

  • (vi)a benefit provided in respect of Rehabilitation Services and Vocational Assistance under Part 2 of the Veterans Well-being Act, or

  • (vii)a benefit provided to a member of the Canadian Forces under the Compensation and Benefit Instructions for the Canadian Forces that is

    • (A)a home modifications benefit,

    • (B)a home modifications move benefit,

    • (C)a vehicle modifications benefit,

    • (D)a home assistance benefit,

    • (E)an attendant care benefit,

    • (F)a caregiver benefit,

    • (G)a spousal education upgrade benefit,

    • (H)a funeral and burial expenses benefit, or

    • (I)a next of kin travel benefit;

      End of inserted block

(3)Paragraph 81(1)‍(d.‍1) 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):

  • Start of inserted block

    (viii)a benefit provided by the Department of National Defence as an education expense reimbursement for ill and injured members;

    End of inserted block

(4)Subparagraph 81(1)‍(g.‍3)‍(i) of the Act is amended by striking out “or” at the end of clause (C), by replacing “and” with “or” at the end of clause (D) and by adding the following after clause (D):

  • Start of inserted block

    (E)the Settlement Agreement entered into by His Majesty in right of Canada on January 18, 2023 in respect of the class action relating to the attendance of day scholars at residential schools, and

    End of inserted block

(5)Subsections (1) and (2) are deemed to have come into force on January 1, 2018.

(6)Subsection (3) is deemed to have come into force on January 1, 2021.

(7)Subsection (4) applies to the 2023 and subsequent taxation years.

17(1)Paragraph 87(2)‍(j.‍6) of the Act is replaced by the following:
  • Continuing corporation

    (j.‍6)for the purposes of paragraphs 12(1)‍(t) and (x), subsections 12(2.‍2) and 13(7.‍1), (7.‍4) and (24), paragraphs 13(27)‍(b) and (28)‍(c), subsections 13(29) and 18(9.‍1), paragraphs 20(1)‍(e), (e.‍1), Insertion start (v) Insertion end and (hh), sections 20.‍1 and 32, paragraph 37(1)‍(c), subsection 39(13), subparagraphs 53(2)‍(c)‍(vi) and (h)‍(ii), paragraph 53(2)‍(s), subsections 53(2.‍1), 66(11.‍4), 66.‍7(11) and 127(10.‍2), section 139.‍1, subsection 152(4.‍3), the determination of D in the definition undepreciated capital cost in subsection 13(21) and the determination of L in the definition cumulative Canadian exploration expense in subsection 66.‍1(6), the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation;

(2)Subsection (1) applies to taxation years that end after 2007 except that, for taxation years that end before March 19, 2019, paragraph 87(2)‍(j.‍6) of the Act, as enacted by subsection (1), does not apply to subsection 127(10.‍2) of the Act.

18(1)Paragraph 90(8)‍(b) of the Act is replaced by the following:

  • (b)indebtedness that arose in the ordinary course of the business of the creditor or a loan made in the ordinary course of the creditor’s ordinary business of lending money ( Insertion start other than a business of lending money if, at any time during which the loan is outstanding, less than 90% of the aggregate outstanding amount of the loans of the business is owing by borrowers that deal at arm’s length with the creditor Insertion end ) if, at the time the indebtedness arose or the loan was made, bona fide arrangements were made for repayment of the indebtedness or loan within a reasonable time;

(2)Section 90 of the Act is amended by adding the following after subsection (8):

Interpretation — partnerships
Start of inserted block
(8.‍01)For the purposes of paragraph (8)‍(b), a borrower shall be considered to deal at arm’s length with a creditor only if
  • (a)for greater certainty, the borrower and the creditor deal with each other at arm’s length;

  • (b)where either the borrower or the creditor is a partnership and the other party is not, each member of the partnership deals at arm’s length with the other party; and

  • (c)where both the borrower and the creditor are partnerships, the borrower and each member of the borrower deal at arm’s length with the creditor and each member of the creditor.

    End of inserted block

(3)Subsections (1) and (2) apply to loans made after 2022. Subsection (1), subsection 90(6) of the Act and all provisions of the Act relevant to the interpretation and application of subsection 90(6) of the Act also apply in respect of any portion of a particular loan made before 2023 that remains outstanding on January 1, 2023 – as if that portion were a separate loan that was made on January 1, 2023 in the same manner and on the same terms as the particular loan – if, at the time when the particular loan was made, it met the requirements of subsection 90(6) of the Act as in force at the time when the particular loan was made.

19(1)The portion of subsection 93.‍3(1) of the Act before paragraph (a) is replaced by the following:

Definition of specified trust
93.‍3(1)In this section, Insertion start specified trust Insertion end , at any time, means a trust in respect of which the following apply at that time:

(2)Paragraph 93.‍3(1)‍(b) of the Act is replaced by the following:

  • (b)the trust is resident in Australia Insertion start or India (in this section referred to as the “specified jurisdiction”) Insertion end ;

(3)Paragraph 93.‍3(2)‍(c) of the Act is replaced by the following:

  • (c)the trust is at that time Insertion start a specified trust Insertion end ;

(4)The portion of paragraph 93.‍3(2)‍(e) of the Act before subparagraph (i) is replaced by the following:

  • (e)unless the non-resident corporation first acquires a beneficial interest in the trust at that time Insertion start or the non-resident corporation first becomes a foreign affiliate of the taxpayer at that time Insertion end , immediately before that time (referred to in this paragraph as the “preceding time”) subsection (3) applied

(5)The portion of subsection 93.‍3(3) of the Act before paragraph (b) is replaced by the following:

Specified trusts
(3)If this subsection applies at any time to a taxpayer resident in Canada in respect of a trust, the following rules apply at that time for the specified purposes:
  • (a)the trust is deemed to be a non-resident corporation that is resident in Insertion start the specified jurisdiction Insertion end and not to be a trust;

(6)Paragraph 93.‍3(4)‍(a) of the Act is replaced by the following:

  • (a)the determination, in respect of an interest in Insertion start a specified trust Insertion end , of the Canadian tax results (as defined in subsection 261(1)) of the taxpayer resident in Canada referred to in subsection (3) for a taxation year in respect of shares of the capital stock of a foreign affiliate of the taxpayer;

(7)Subsections (1) to (3), (5) and (6) are deemed to have come into force on January 1, 2022.

(8)Subsection (4) is deemed to have come into force on July 12, 2013. However, if section 93.‍3 of the Act is deemed to have come into force on January 1, 2006 in respect of a corporation resident in Canada because of an election filed under subsection 22(3) of the Economic Action Plan 2014 Act, No. 2, then subsection (4) is deemed to have come into force on January 1, 2006 in respect of that corporation.

(9)For the purpose of determining if the condition in paragraph 93.‍3(2)‍(e) of the Act, as amended by subsection (4), is met at any particular time on or after January 1, 2022, if a non-resident corporation has a beneficial interest in a trust resident in India at the beginning of the day on January 1, 2022, the non-resident corporation is deemed to have first acquired a beneficial interest in the trust at that time.

20(1)The portion of paragraph 95(2)‍(b) of the French version of the Act before subparagraph (i) is replaced by the following:

  • b)la fourniture, par une société étrangère affiliée d’un contribuable, de services ou d’un engagement de fournir des services est réputée constituer une entreprise distincte, autre qu’une entreprise exploitée activement, que la société affiliée exploite, et le revenu qui est tiré de cette entreprise, qui s’y rapporte ou qui y est accessoire est réputé être un revenu tiré d’une entreprise autre qu’une entreprise exploitée activement, dans la mesure où, Insertion start selon le cas Insertion end  :

(2)The definition eligible controlled foreign affiliate in subsection 95(4) of the Act is replaced by the following:

eligible controlled foreign affiliate, of a taxpayer, at any time, means a foreign affiliate of the taxpayer at that time, Insertion start if Insertion end

  • (a)the affiliate is a controlled foreign affiliate of the taxpayer at that time and at the end of the affiliate’s taxation year that includes that time, and

  • (b)the following Insertion start condition is Insertion end met:

    Insertion start A ≥ Insertion end 90%
    Start of inserted block
    where
    End of inserted block

    Insertion start A Insertion end                     
    Insertion start is Insertion end the total of all amounts each of which would be the participating percentage (determined at the end of the taxation year) of a share owned by the taxpayer of the capital stock of a corporation, in respect of the affiliate, Insertion start if Insertion end

    Start of inserted block

    (i)the definition relevant cost base were read without reference to the words “if the affiliate is an eligible controlled foreign affiliate of the taxpayer at that time,” in its subparagraph (b)‍(i), and

    (ii)the definition participating percentage in subsection (1) were read without reference to its paragraph (a) and the portion of its paragraph (b) before subparagraph (i); (société étrangère affiliée contrôlée admissible)

    End of inserted block

(3)Subsection (1) applies to taxation years of a foreign affiliate of a taxpayer that begin on or after February 27, 2004.

(4)Subsection (2) applies in respect of determinations made after August 19, 2011 in respect of property of a foreign affiliate of a taxpayer. However, if the taxpayer elects in writing under this subsection, in respect of all of its foreign affiliates, and files the election with the Minister of National Revenue, paragraph (b) of the definition eligible controlled foreign affiliate in subsection 95(4) of the Act, as enacted by subsection (2), is, in respect of any such determination made before August 9, 2022, to be read without reference to subparagraph (ii) of the description of A and subparagraph (i) of the description of A is to be read as follows:

  • (i)the amount determined for paragraph (b) in the definition relevant cost base were nil;

21The portion of subsection 96(3) of the Act before paragraph (a) is replaced by the following:

Agreement or election of partnership members
(3)If a taxpayer who was a member of a partnership at any time in a fiscal period has, for any purpose relevant to the computation of the taxpayer’s income from the partnership for the fiscal period, made or executed an agreement, designation or election under or in respect of the application of any of subsections 10.‍1(1), 13(4), (4.‍2) and (16), 20(9) and 21(1) to (4), section 22, subsection 29(1), section 34, clause 37(8)‍(a)‍(ii)‍(B), subsections 44(1) and (6), 50(1) and 80(5) and (9) to (11), section 80.‍04, subsections 86.‍1(2), 88(3.‍1), (3.‍3) and (3.‍5) and 90(3), the definition relevant cost base in subsection 95(4) and subsections 97(2), 139.‍1(16) and (17) and 249.‍1(4) and (6) that, if this Act were read without reference to this subsection, would be a valid agreement, designation or election,

22(1)Paragraph 98(3)‍(c) of the Act is amended by striking out “and” at the end of subparagraph (i) and by adding the following after that subparagraph:

  • Start of inserted block

    (i.‍1)if such property is a membership interest in a partnership (in this subparagraph referred to as the “other partnership”), the person’s percentage of the fair market value of the property immediately after its distribution to the person is deemed to be determined by the formula

    A − B
    where

    A
    is the amount that is the person’s percentage of the fair market value (determined without reference to this subparagraph) of the property immediately after its distribution,

    B
    is the portion of the amount by which the person’s percentage of the fair market value (determined without reference to this subparagraph) of the property immediately after its distribution exceeds the person’s percentage of the cost amount to the partnership of the property immediately before its distribution as may reasonably be regarded as being attributable to the total of all amounts each of which is immediately after the particular time

    (A)in the case of depreciable property held directly by the other partnership or held indirectly by the other partnership through one or more other partnerships, the amount by which the fair market value (determined without reference to liabilities) of such depreciable property exceeds its cost amount,

    (B)in the case of a Canadian resource property or a foreign resource property held directly by the other partnership or held indirectly by the other partnership through one or more other partnerships, the fair market value (determined without reference to liabilities) of such Canadian or foreign resource property, or

    (C)in the case of other property that is not a capital property, a Canadian resource property or a foreign resource property and that is held directly by the other partnership or held indirectly by the other partnership through one or more other partnerships, the amount by which the fair market value (determined without reference to liabilities) of such other property exceeds its cost amount, and

    End of inserted block

(2)Paragraph 98(5)‍(c) of the Act is amended by striking out “and” at the end of subparagraph (i) and by adding the following after that subparagraph:

  • Start of inserted block

    (i.‍1)if such property is a membership interest in a partnership (in this subparagraph referred to as the “other partnership”), the fair market value of the property immediately after the particular time is deemed to be determined by the formula

    A − B
    where

    A
    is the amount that is the fair market value (determined without reference to this subparagraph) of the property immediately after its distribution to the proprietor,

    B
    is the portion of the amount by which the fair market value (determined without reference to this subparagraph) of the property immediately after its distribution to the proprietor exceeds the cost amount to the partnership of the property immediately before its distribution that may reasonably be regarded as being attributable to the total of all amounts each of which is immediately after the particular time

    (A)in the case of depreciable property held directly by the other partnership or held indirectly by the other partnership through one or more other partnerships, the amount by which the fair market value (determined without reference to liabilities) of such depreciable property exceeds its cost amount,

    (B)in the case of a Canadian resource property or a foreign resource property held directly by the other partnership or held indirectly by the other partnership through one or more other partnerships, the fair market value (determined without reference to liabilities) of such Canadian or foreign resource property, or

    (C)in the case of a property that is not a capital property, a Canadian resource property or a foreign resource property and that is held directly by the other partnership or held indirectly by the other partnership through one or more other partnerships, the amount by which the fair market value (determined without reference to liabilities) of such property exceeds its cost amount, and

    End of inserted block

(3)Subsections (1) and (2) apply in respect of partnerships that cease to exist on or after August 9, 2022.

23(1)The portion of subsection 108(3) of the Act before paragraph (a) is replaced by the following:
Income of a trust in certain provisions
(3)For the purposes of the definition income interest in subsection (1), Insertion start subclause (c.‍1)‍(iii.‍1)‍(D)‍(II) of the definition principal residence in section 54 and the definitions Insertion end lifetime benefit trust in subsection 60.‍011(1) and exempt foreign trust in subsection 94(1), the income of a trust is its income computed without reference to the provisions of this Act and, for the purposes of the definition pre-1972 spousal trust in subsection (1) and paragraphs 70(6)‍(b) and (6.‍1)‍(b), 73(1.‍01)‍(c) and 104(4)‍(a), the income of a trust is its income computed without reference to the provisions of this Act, minus any dividends included in that income

(2)Subsection (1) applies to taxation years that begin after 2016.

24Paragraph (b) of the definition action du capital-actions d’une société agricole ou de pêche familiale in subsection 110.‍6(1) of the French version of the Act is replaced by the following:

  • b)à ce moment, la totalité ou la presque totalité de la juste valeur marchande des biens de la société est attribuable à des biens visés au sous-alinéa a)‍(iv). (share of the capital stock of a family farm or fishing corporation)

25(1)The portion of subsection 115.‍2(2) of the Act before paragraph (a) is replaced by the following:

Not carrying on business in Canada
(2)For the purposes of subsections 115(1) and 150(1), Part XIV Insertion start and section 805 of the Income Tax Regulations Insertion end , a non-resident person is not considered to be carrying on business in Canada at any particular time solely because of the provision to the person, or to a partnership of which the person is a member, at the particular time of designated investment services by a Canadian service provider if

(2)Subsection (1) is deemed to have come into force on August 9, 2022.

26(1)Subsection 117(2.‍1) of the Act is replaced by the following:

Adjustment to tax payable – advance payment
(2.‍1)The tax payable under this Part on the individual’s taxable income for a taxation year, as computed under subsection (2), is deemed to be the total of the amount otherwise computed under that subsection and, except for the purposes of sections 118 to 118.‍9, 120.‍2, 121 and Subdivision C, Insertion start the lesser of Insertion end
  • Start of inserted block

    (a)the total of all amounts deemed to have been paid on account of the individual’s tax payable under this Part for the taxation year under subsections 122.‍7(2) and (3), and

  • (b)the amount that

    • (i)if the individual is an eligible individual for the purposes of subsection 122.‍7(2), is the total of all amounts deemed to have been paid

      • (A)on account of the individual’s tax payable under this Part for the taxation year under subsection 122.‍72(1) or (3), and

      • (B)on account of tax payable under this Part for the taxation year under subsection 122.‍72(1) or (3), if subsection 122.‍72(1) were read without reference to subsection 122.‍7(3), of a person who is the individual’s cohabiting spouse or common-law partner (as defined in subsection 122.‍7(1)) at the end of the taxation year, and

    • (ii)in any other case, is the total of all amounts deemed to have been paid on account of the individual’s tax payable under this Part for the taxation year under subsection 122.‍72(1) or (3), if subsection 122.‍72(1) were read without reference to subsection 122.‍7(2).

      End of inserted block

(2)Subsection (1) applies to taxation years that begin after 2022.

27(1)Subparagraph (a)‍(iii.‍1) of the definition pension income in subsection 118(7) of the Act is replaced by the following:

  • (iii.‍1)a payment (other than a payment described in subparagraph (i)) under a money purchase provision ( Insertion start as defined in Insertion end subsection 147.‍1(1)) of a registered pension plan Insertion start or under a specified pension plan Insertion end ,

(2)Subsection (1) applies to the 2019 and subsequent taxation years.

28(1)The portion of subsection 120.‍4(3) of the Act before paragraph (a) of the description of B is replaced by the following:

Tax payable by a specified individual
(3)Notwithstanding any other provision of this Act, if an individual is a specified individual for a taxation year, the individual’s tax payable under this Part for the year shall not be less than the amount, Insertion start if any Insertion end , determined by the formula
(A + B) Insertion start − (C + D) Insertion end
where

A
is the amount Insertion start added under subsection (2) to Insertion end the individual’s tax payable under this Part for the year;

Start of inserted block

B
is the amount that is the lesser of the amounts determined under paragraphs 117(2.‍1)‍(a) and (b) for the individual for the year;

C
is the amount deducted under section 118.‍3 in computing the individual’s tax payable under this Part for the year; and

End of inserted block

Insertion start D Insertion end
is the total of all amounts each of which is the amount that

(2)Subsection (1) applies to taxation years that begin after 2022.

29(1)Section 122.‍5 of the Act is amended by adding the following after subsection (3.‍002):

Additional deemed payment – January 2023
Start of inserted block
(3.‍003)An eligible individual in relation to a month specified for a taxation year who files a return of income for the taxation year is deemed to have paid during the specified month on account of their tax payable under this Part for the taxation year an amount determined by the formula
0.‍25 × (A − B) − C
where

A
is the total of

(a)$918,

(b)$918 for the qualified relation, if any, of the individual in relation to the specified month,

(c)if the individual has no qualified relation in relation to the specified month and is entitled to deduct an amount for the taxation year under subsection 118(1) because of paragraph (b) of the description of B in that subsection in respect of a qualified dependant of the individual in relation to the specified month, $918,

(d)$483 times the number of qualified dependants of the individual in relation to the specified month, other than a qualified dependant in respect of whom an amount is included under paragraph (c) in computing the total for the specified month,

(e)if the individual has no qualified relation and has one or more qualified dependants, in relation to the specified month, $483, and

(f)if the individual has no qualified relation and no qualified dependant, in relation to the specified month, the lesser of $483 and 6% of the amount, if any, by which the individual’s income for the taxation year exceeds $9,919;

B
is 15% of the amount, if any, by which the individual’s adjusted income for the taxation year exceeds $39,826; and

C
is the amount that the eligible individual is deemed to have paid under subsection (3) during the specified month on account of their tax payable for the taxation year.

End of inserted block

(2)Section 122.‍5 of the Act is amended by adding the following after subsection (3.‍03):

January 2023 payment – shared-custody parent
Start of inserted block
(3.‍04)Notwithstanding subsection (3.‍003), if an eligible individual is a shared-custody parent (as defined in section 122.‍6, but with the term “qualified dependant” in that section having the meaning assigned by subsection (1)) in respect of one or more qualified dependants at the beginning of a month, the amount deemed by subsection (3.‍003) to have been paid during the specified month is equal to the amount determined by the formula
0.‍5 × (A + B)
where

A
is the amount determined by the formula in subsection (3.‍003), calculated without reference to this subsection; and

B
is the amount determined by the formula in subsection (3.‍003), calculated without reference to this subsection and subparagraph (b)‍(ii) of the definition eligible individual in section 122.‍6.

End of inserted block

(3)Section 122.‍5 of the Act is amended by adding the following after subsection (4.‍2):

January 2023 – month specified
Start of inserted block
(4.‍3)Notwithstanding subsection (4) and for the purposes of this section, the month specified in subsection (3.‍003) is January 2023 and the taxation year is the 2021 taxation year.
End of inserted block

30(1)The portion of subsection 122.‍7(1) of the Act before the first definition is replaced by the following:

Definitions
122.‍7(1)The following definitions apply in this Insertion start Subdivision Insertion end .

(2)The portion of subsection 122.‍7(2) of the Act before the formula is replaced by the following:

Deemed payment on account of tax
(2)Subject to Insertion start subsection Insertion end (5), an eligible individual for a taxation year who files a return of income for the taxation year is deemed to have paid, at the end of the taxation year, on account of tax payable under this Part for the taxation year, an amount equal to the amount, if any, determined by the formula

(3)Subsections 122.‍7(4) and (6) to (9) of the Act are repealed.

(4)Subsections (1) to (3) apply to taxation years that begin after 2022.

31(1)The Act is amended by adding the following after section 122.‍71:

Advance payment
Start of inserted block
122.‍72(1)Subject to subsection (5), an individual in relation to a month specified for a taxation year who is an eligible individual for the preceding taxation year who files a return of income for the preceding taxation year on or before the first day of November of the taxation year is deemed to have paid during the specified month on account of their tax payable under this Part for the taxation year an amount equal to 1/6 of the total of the amounts, if any, determined for the individual for the preceding taxation year under subsections 122.‍7(2) and (3).
End of inserted block
Conditions of application of subsection (3)
Start of inserted block
(2)Subsection (3) applies in respect of an individual in relation to a particular month specified for a taxation year, and each subsequent month specified for the taxation year, if absent subsection (3)
  • (a)the amount deemed by subsection (1) to have been paid by the individual during the particular month specified for the taxation year would be less than $33; and

  • (b)it is reasonable to conclude that the amount deemed by subsection (1) to have been paid by the individual during each subsequent month specified for the taxation year would be less than $33.

    End of inserted block
Single advance payment
Start of inserted block
(3)If this subsection applies
  • (a)the total of all amounts that would otherwise be deemed by subsection (1) to have been paid on account of the individual’s tax payable under this Part for the taxation year during the particular month specified for the taxation year, and during each subsequent month specified for the taxation year, is deemed to have been paid by the individual on account of their tax payable under this Part for the taxation year during the particular specified month for the taxation year; and

  • (b)the amount deemed by subsection (1) to have been paid by the eligible individual during those subsequent months specified for the taxation year is deemed, except for the purpose of this subsection, not to have been paid to the extent that it is included in an amount deemed to have been paid by this subsection.

    End of inserted block
Months specified
Start of inserted block
(4)For the purposes of this section, the months specified for a taxation year are July and October of the taxation year and January of the immediately following taxation year.
End of inserted block
No advance payment
Start of inserted block
(5)For the purposes of subsection (1), an individual is not an eligible individual for the preceding taxation year in relation to a month specified for a taxation year if the individual
  • (a)dies in the taxation year before the first day of July;

  • (b)is confined to a prison or similar institution for a period in the taxation year of at least 90 days that begins on or before the first day of the specified month; or

  • (c)ceases to be resident in Canada on a day in the taxation year that is on or before the first day of the specified month.

    End of inserted block
Notification to Minister
Start of inserted block
(6)If, in the absence of subsection (5), an individual or their cohabiting spouse or common-law partner at the end of the preceding taxation year would be deemed in a taxation year to have paid an amount on account of tax payable for the taxation year under this section, the individual (or, in the case of a deceased individual, their legal representative) shall notify the Minister of the occurrence of any of the following events before the end of the month following the month in which the event occurs:
  • (a)the individual dies in the taxation year;

  • (b)the individual ceases to be resident in Canada in the taxation year; or

  • (c)the individual is confined to a prison or similar institution for a period of at least 90 days in the taxation year.

    End of inserted block
Advance payment – no eligible spouse
Start of inserted block
(7)Subsection (1) is to be applied to a particular individual in relation to a month specified for a taxation year as if section 122.‍7 applied to the particular individual for the preceding taxation year on the basis that the particular individual had no eligible spouse for the preceding taxation year, if
  • (a)another individual was, for the purposes of section 122.‍7, the eligible spouse of the particular individual for the preceding taxation year; and

  • (b)the other individual is not, for the purposes of subsection (1), an eligible individual for the preceding taxation year in relation to the month specified for the taxation year because of subsection (5).

    End of inserted block

(2)Subsection (1) applies to taxation years that begin after 2022.

32The portion of the definition entreprise de placement déterminée in subsection 125(7) of the French version of the Act before paragraph (a) is replaced by the following:

entreprise de placement déterminée Entreprise Insertion start exploitée par une société Insertion end , sauf une entreprise exploitée par une caisse de crédit ou une entreprise de location de biens autres que des biens immeubles ou réels, dont le but principal est de tirer un revenu de biens, notamment des intérêts, des dividendes, des loyers et des redevances. Toutefois, sauf dans le cas où la société est une société à capital de risque de travailleurs visée par règlement au cours de l’année, l’entreprise exploitée par une société au cours d’une année d’imposition n’est pas une entreprise Insertion start de placement Insertion end déterminée si, selon le cas :

33Subsection 136(1) of the Act is replaced by the following:

Cooperative not private corporation
136(1)Notwithstanding any other provision of this Act, a cooperative corporation that would, but for this section, be a private corporation is deemed not to be a private corporation except for the purposes of paragraphs 87(2)‍(vv) and (ww) (including, for greater certainty, in applying those paragraphs as provided under paragraph 88(1)‍(e.‍2)), the definitions excessive eligible dividend designation, general rate income pool and low rate income pool in subsection 89(1), subsections 89(4) to (6) and (8) to (10), sections 123.‍4, 125, 125.‍1, 127 and 127.‍1, the definition mark-to-market property in subsection 142.‍2(1), sections 152 and 157, subsection 185.‍2(3), the definition small business corporation in subsection 248(1) (as it applies for the purposes of paragraph 39(1)‍(c)) and subsection 249(3.‍1).

34Paragraph (c) of the definition specified debt obligation in subsection 142.‍2(1) of the Act is replaced by the following:

  • (c)an income bond, an income debenture or a prescribed property, or

35Subsection 143(1) of the Act is amended by adding “and” at the end of paragraph (k), by striking out “and” at the end of paragraph (l) and by repealing paragraph (m).

36(1)Paragraph 144.‍1(2)‍(f) of the Act is replaced by the following:

  • (f) Insertion start unless the condition in subparagraph (e)‍(ii) is satisfied Insertion end , the rights under the trust of each key employee of a participating employer are not more advantageous than the rights of a class of beneficiaries described in Insertion start subparagraph (e)‍(i) Insertion end ;

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

37(1)The description of Q in the definition net past service pension adjustment in subsection 146(1) of the Act is replaced by the following:

Start of inserted block

Q
is the total of all amounts each of which is the amount of a contribution made under subsection 147.‍1(20), or deemed by prescribed rules to have been made, in respect of the taxpayer for the immediately preceding year, and

End of inserted block

(2)Subsection (1) is deemed to have come into force on January 1, 2021.

38(1)Paragraph 146.‍01(2)‍(b) of the Act is replaced by the following:

  • (b) Insertion start except for the purposes of paragraphs (d) and (g) of the definition regular eligible amount and paragraphs (e) and (f) of the definition supplemental eligible amount in subsection (1) Insertion end , where an individual agrees to acquire a condominium unit, the individual shall be deemed to have acquired it on the day the individual is entitled to immediate vacant possession of it;

(2)Subsection (1) is deemed to have come into force on August 9, 2022.

39(1)Paragraph (a) of the definition education savings plan in subsection 146.‍1(1) of the Act is amended by striking out “and” at the end of subparagraph (ii) and by adding the following after subparagraph (iii):

  • Start of inserted block

    (iv)an individual (other than a trust), who is a legal parent of a beneficiary, and the individual’s former spouse or common-law partner, who is also the legal parent of a beneficiary, and

    End of inserted block

(2)Subclause 146.‍1(2)‍(g.‍1)‍(ii)‍(A)‍(II) of the Act is replaced by the following:

  • (II)the total of the payment and all other educational assistance payments made under a registered education savings plan of the promoter to or for the individual in the 12-month period that ends at that time does not exceed $ Insertion start 8,000 Insertion end or any greater amount that the Minister designated for the purpose of the Canada Education Savings Act approves in writing with respect to the individual, or

(3)Clause 146.‍1(2)‍(g.‍1)‍(ii)‍(B) of the Act is replaced by the following:

  • (B)the individual satisfies, at that time, the condition set out in clause (i)‍(B) and the total of the payment and all other educational assistance payments made under a registered education savings plan of the promoter to or for the individual in the 13-week period that ends at that time does not exceed $ Insertion start 4,000 Insertion end or any greater amount that the Minister designated for the purpose of the Canada Education Savings Act approves in writing with respect to the individual;

(4)Subsections (1) to (3) are deemed to have come into force on March 28, 2023.

40(1)Section 146.‍2 of the Act is amended by adding the following after subsection (4):

Right of set-off
Start of inserted block
(4.‍1)A qualifying arrangement that is a deposit may provide that the issuer has the right to set off any indebtedness owed by the holder to the issuer, or a person related to the issuer, against the holder’s interest in the arrangement if
  • (a)the terms and conditions of the indebtedness and the right of set-off are terms and conditions that persons dealing at arm’s length with each other would have entered into; and

  • (b)it is reasonable to conclude that none of the main purposes for the right of set-off is to enable a person (other than the holder) or a partnership to benefit from the exemption from tax under this Part of any amount in respect of the TFSA.

    End of inserted block

(2)The portion of subsection 146.‍2(5) of the Act before paragraph (a) is replaced by the following:

TFSA
(5)If the issuer of an arrangement that is, at the time it is entered into, a qualifying arrangement files with the Minister, before March of the calendar year following the calendar year in which the arrangement was entered into ( Insertion start or such later date as is acceptable to the Minister Insertion end ), an election in prescribed form and manner to register the arrangement as a TFSA under the Social Insurance Number of the individual with whom the arrangement was entered into, the arrangement becomes a TFSA at the time the arrangement was entered into and ceases to be a TFSA at the earliest of the following times:

(3)Subsection (1) is deemed to have come into force on August 9, 2022.

(4)Subsection (2) applies to the 2009 and subsequent taxation years.

41(1)The portion of paragraph 146.‍3(2)‍(e.‍1) of the Act before subparagraph (i) is replaced by the following:

  • (e.‍1)where the fund does not govern a trust or the fund governs a trust created before 1998 that does not hold an annuity contract as a qualified investment for the trust, the fund provides that if an annuitant, at any time, directs that the carrier transfer all or part of the property held in connection with the fund, or an amount equal to its value at that time, to another registered retirement income fund of the annuitant or in accordance with subsection (14.‍1), the transferor shall retain an amount equal to the lesser of

(2)The portion of paragraph 146.‍3(2)‍(e.‍2) of the Act before subparagraph (i) is replaced by the following:

  • (e.‍2)where paragraph (e.‍1) does not apply, the fund provides that if an annuitant, at any time, directs that the carrier transfer all or part of the property held in connection with the fund, or an amount equal to its value at that time, to another registered retirement income fund of the annuitant or in accordance with subsection (14.‍1), the transferor shall retain property in the fund sufficient to ensure that the total of

(3)Paragraph 146.‍3(14.‍1)‍(b) of the Act is replaced by the following:

  • (b)is transferred at the direction of the annuitant directly to a registered pension plan of which, at any time before the transfer, the annuitant was a member ( Insertion start as defined in Insertion end subsection 147.‍1(1)) or to a Insertion start specified Insertion end pension plan and is allocated to the annuitant under a money purchase provision ( Insertion start as defined in Insertion end subsection 147.‍1(1)) of the plan; or

(4)Subsections (1) to (3) are deemed to have come into force on August 9, 2022.

42(1)Clause (a)‍(ii)‍(B.‍1) of the definition disability savings plan in subsection 146.‍4(1) of the Act is replaced by the following:
  • (B.‍1)if the arrangement is entered into before Insertion start 2027 Insertion end , a qualifying family member in relation to the beneficiary who, at the time the arrangement is entered into, is a qualifying person in relation to the beneficiary,

(2)The definition qualifying family member in subsection 146.‍4(1) of the Act is amended by striking out “or” at the end of paragraph (a), by adding “or” at the end of paragraph (b) and by adding the following after paragraph (b):

  • Start of inserted block

    (c)a brother or sister (determined without reference to subsection 252(2)) of the beneficiary. (membre de la famille admissible)

    End of inserted block

(3)Paragraph 146.‍4(5)‍(b) of the Act is amended by striking out “and” at the end of subparagraph (i) and by replacing subparagraph (ii) with the following:

  • Start of inserted block

    (ii)the trust’s taxable capital gain or allowable capital loss from the disposition of a property is equal to its capital gain or capital loss, as the case may be, from the disposition, and

  • (iii)the trust’s income shall be computed without reference to subsection 104(6).

    End of inserted block

(4)Subsection (3) is deemed to have come into force on August 9, 2022.

43(1)Paragraph (a) of the definition compensation in subsection 147.‍1(1) of the Act is replaced by the following:

  • (a)an amount in respect of the individual’s employment with the employer, or an office in respect of which the individual is remunerated by the employer, that is required (or that would be required but for paragraph 81(1)‍(a) as it applies with respect to the Indian Act or the Foreign Missions and International Organizations Act) by section 5 or 6 to be included in computing the individual’s income for the year, except such portion of the amount Insertion start that Insertion end

    • Start of inserted block

      (i)meets the following conditions:

      End of inserted block
      • Insertion start (A) Insertion end Insertion start Insertion end Insertion start the portion Insertion end may reasonably be considered to relate to a period throughout which the individual was not resident in Canada, and

      • Start of inserted block

        (B)the portion is

        End of inserted block
        • Insertion start (I) Insertion end not attributable to the performance of the duties of the office or employment in Canada, or

        • Insertion start (II) Insertion end exempt from income tax in Canada by reason of a Insertion start tax treaty, or Insertion end

    • Start of inserted block

      (ii)is deducted under paragraph 8(1)‍(o.‍2) in computing the taxpayer’s income for the year,

      End of inserted block

(2)Paragraph (b) of the definition money purchase provision in subsection 147.‍1(1) of the Act is replaced by the following:

  • (b)under which the only benefits in respect of a member are benefits

    • Insertion start (i) Insertion end determined solely with reference to, and provided by, the amount in the member’s account, or

    • Start of inserted block

      (ii)provided under a VPLA fund described in subsection 8506(13) of the Income Tax Regulations; (disposition à cotisations déterminées)

      End of inserted block

(3)Subsection 147.‍1(1) of the Act is amended by adding the following in alphabetical order:

Start of inserted block

designated money purchase provision, in a calendar year, means a money purchase provision of a registered pension plan under which accounts are maintained in respect of at least 10 members throughout the year or under which the total contributions made for the year on behalf of an individual described in paragraph 8515(4)‍(a) or (b) of the Income Tax Regulations do not exceed 50% of the total contributions made for the year; (disposition à cotisations déterminées désignée)

permitted corrective contribution to a registered pension plan means a contribution in a calendar year in respect of an individual that would otherwise have been made in one or more of the 10 immediately preceding years (each such year referred to in this definition as a “retroactive year”) in accordance with the money purchase provision of the plan as registered or a money purchase provision of a registered pension plan of a predecessor employer (for the purposes of this definition, as defined in subsection 8500(1) of the Regulations), but for an error that caused a failure to enroll the individual as a member of the plan or a failure to make a required contribution, to the extent that the amount of the contribution does not exceed the lesser of

  • (a)the total of all amounts each of which is an amount, for a retroactive year, determined by the formula

    A + B − C
    where

    A
    is the total of all amounts each of which is an amount by which a contribution required to be made at a particular time in the retroactive year under the provision in respect of the individual exceeds the amount contributed at the particular time in respect of the individual,

    B
    is the amount of interest, if any, calculated in respect of each amount determined for A at a rate that

    (i)is required by the Pension Benefits Standards Act, 1985 or a similar law of a province, or

    (ii)if subparagraph (i) does not apply, does not exceed a reasonable rate, and

    C
    is the total amount previously contributed to the provision in respect of the individual under subsection (20) for the retroactive year, and

  • (b)the amount determined by the formula

    E − F
    where

    E
    is 150% of the money purchase limit for the calendar year, and

    F
    is the total amount previously contributed in respect of the individual under subsection (20) to the provision, or to any other money purchase provision, if a participating employer under the provision or a predecessor employer has been a participating employer in respect of the individual under that other provision; (cotisation corrective permise)

    End of inserted block

(4)Section 147.‍1 of the Act is amended by adding the following after subsection (19):

Permitted corrective contribution
Start of inserted block
(20)An individual or an employer may make a contribution in a calendar year under a money purchase provision of a registered pension plan in respect of the individual if it is a permitted corrective contribution and the provision was a designated money purchase provision in each of the prior years in respect of which the contribution is made.
End of inserted block

(5)Subsection (1) is deemed to have come into force on August 9, 2022.

(6)Subsection (2) is deemed to have come into force on January 1, 2020.

(7)Subsections (3) and (4) are deemed to have come into force on January 1, 2021.

44(1)Paragraph 147.‍2(1)‍(a) of the Act is replaced by the following:

  • (a)in the case of a contribution in respect of a money purchase provision of a plan, the contribution was made in respect of periods before the end of the taxation year

    • Insertion start (i) Insertion end in accordance with the plan as registered, Insertion start or Insertion end

    • Start of inserted block

      (ii)under subsection 147.‍1(20);

      End of inserted block

(2)Paragraph 147.‍2(4)‍(a) of the Act is replaced by the following:

  • Service after 1989

    (a)the total of all amounts each of which is a contribution (other than a prescribed contribution) made by the individual in the year

    • Insertion start (i) Insertion end to a registered pension plan that is in respect of a period after 1989 or that is a prescribed eligible contribution, to the extent that the contribution was made in accordance with the plan as registered, Insertion start or Insertion end

    • Start of inserted block

      (ii)under subsection 147.‍1(20);

      End of inserted block

(3)Subsections (1) and (2) are deemed to have come into force on January 1, 2021.

45(1)Paragraph 147.‍5(2)‍(f) of the Act is amended by striking out “or” at the end of subparagraph (i), by adding “or” at the end of subparagraph (ii) and by adding the following after subparagraph (ii):

  • Start of inserted block

    (iii)a surrender of benefits payable to a qualifying survivor of a member after the member’s death, to the extent permitted under the Pooled Registered Pension Plans Act or a similar law of a province;

    End of inserted block

(2)Subsection 147.‍5(12) of the Act is replaced by the following:

Member’s account
(12)For the purposes of paragraph 18(1)‍(u), subparagraph (a)‍(i) of the definition excluded right or interest in subsection 128.‍1(10), paragraph 146(8.‍2)‍(b), subsection 146(8.‍21), paragraphs 146(16)‍(a) and (b), subparagraph 146(21)‍(a)‍(i), paragraph (b) of the definition excluded premium in subsection 146.‍01(1), paragraph (c) of the definition excluded premium in subsection 146.‍02(1), subsections 146.‍3(14) and 147(19) to (21), Insertion start sections Insertion end 147.‍3 Insertion start and 160.‍2 Insertion end and paragraphs 212(1)‍(j.‍1) and (m), and of regulations made under subsection 147.‍1(18), a member’s account under a PRPP is deemed to be a registered retirement savings plan under which the member is the annuitant.

(3)Subparagraph (b)‍(ii) of the description of B in subsection 147.‍5(18) of the Act is replaced by the following:

(ii)an amount Insertion start distributed from the account to, or on behalf Insertion end of, a qualifying survivor in relation to the member Insertion start as a consequence of the death of the member Insertion end .

(4)Subsections (1) to (3) are deemed to have come into force on August 9, 2022.

46(1)Subsection 149(1) of the Act is amended by adding the following after paragraph (o.‍4):

  • Pension Benefits Guarantee Fund
    Start of inserted block

    (o.‍5)the Pension Benefits Guarantee Fund under the Pension Benefits Act, R.‍S.‍O. 1990, c. P.‍8, and any corporation established solely for investing the assets of the Pension Benefits Guarantee Fund;

    End of inserted block

(2)Paragraph 149(1.‍2)‍(a) of the Act is replaced by the following:

  • (a)under an agreement Insertion start that meets the following conditions Insertion end :

    • (i) Insertion start the agreement is Insertion end in writing between

      • Insertion start (A) Insertion end the corporation, commission or association, and

      • Insertion start (B) Insertion end a person who is Insertion start His Insertion end Majesty in right of Canada or of a province, a municipality, a municipal or public body or a corporation to which any of paragraphs (1)‍(d) to (d.‍6) applies and that is controlled by Insertion start His Insertion end Majesty in right of Canada or of a province, by a municipality in Canada or by a municipal or public body in Canada,

    • (ii) Insertion start the agreement is applicable Insertion end within the geographical boundaries of

      • Insertion start (A) Insertion end if the person is Insertion start His Insertion end Majesty in right of Canada or a corporation controlled by Insertion start His Insertion end Majesty in right of Canada, Canada,

      • Insertion start (B) Insertion end if the person is Insertion start His Insertion end Majesty in right of a province or a corporation controlled by Insertion start His Insertion end Majesty in right of a province, the province,

      • Insertion start (C) Insertion end if the person is a municipality in Canada or a corporation controlled by a municipality in Canada, the municipality, and

      • Insertion start (D) Insertion end if the person is a municipal or public body or a corporation controlled by such a body, the area described in subsection (11) in respect of the person,

    • Start of inserted block

      (iii)the income earned from the activities carried on under the agreement is paid from the party described in clause (i)‍(B) to the party described in clause (i)‍(A), and

    • (iv)the activities under the agreement are activities normally carried out by a local government; or

      End of inserted block

(3)Subsection (1) applies to the 2022 and subsequent taxation years.

(4)Subsection (2) is deemed to have come into force on August 9, 2022.

47(1)Paragraph 149.‍1(15)‍(a) of the Act is replaced by the following:

  • (a)the information contained in a public information return referred to in subsection (14) or (14.‍1), Insertion start and the filing status of information returns required by that subsection Insertion end , shall be communicated or otherwise made available to the public by the Minister in such manner as the Minister Insertion start considers Insertion end appropriate;

(2)Subparagraph 149.‍1(15)‍(b)‍(iii) of the Act is replaced by the following:

  • (iii)the effective date of any Insertion start suspension Insertion end , revocation, annulment or termination of registration; and

(3)Subsection (1) applies in respect of information returns required to be filed for taxation years that end after August 9, 2022.

(4)Subsection (2) is deemed to have come into force on August 9, 2022.

48(1)Subsections 150.‍1(2.‍2) and (2.‍3) of the Act are replaced by the following:

Definition of tax preparer
(2.‍2)In this section and subsection 162(7.‍3), tax preparer, for a calendar year, means a person or partnership who, in the year, accepts consideration to prepare more than Insertion start five Insertion end returns of income of corporations, more than Insertion start five Insertion end returns of income of individuals (other than trusts) or Insertion start more than five returns of income of estates or trusts Insertion end , but does not include an employee who prepares returns of income in the course of performing their duties of employment.
Electronic filing — tax preparer
(2.‍3)A tax preparer shall file any return of income prepared by the tax preparer for consideration by way of electronic filing, except that Insertion start five Insertion end of the returns of corporations, Insertion start five Insertion end of the returns of individuals ( Insertion start other than trusts) and five of the returns of estates or trusts Insertion end may be filed other than by way of electronic filing.

(2)Subsection 150.‍1(4) of the Act is replaced by the following:

Declaration
(4) Insertion start If Insertion end a return of income of a taxpayer for a taxation year is filed by way of electronic filing by a particular person (in this subsection referred to as the “filer”) other than the person who is required to file the return, the person who is required to file the return shall make an information return in prescribed form containing prescribed information, retain a copy of it and provide the filer with the information return, and that return and the copy shall be deemed to be a record referred to in section 230 in respect of the filer and the other person.

(3)Section 150.‍1 of the Act is amended by adding the following after subsection (4):

Electronic notice of assessment
Start of inserted block
(4.‍1)Notwithstanding subsection 244(14.‍1), a notice of assessment in respect of a return of income for a taxation year of an individual is presumed to have been sent to the individual and received by the individual on the day that it is made available, using electronic means, to the individual, if
  • (a)the return of income is filed by way of electronic filing; and

  • (b)the individual has authorized that notices or other communications may be made available in that manner and has not before that date revoked that authorization in a manner specified by the Minister.

    End of inserted block

(4)Subsections (1) and (3) come into force on January 1, 2024.

49(1)Paragraph 152(1)‍(b) of the Act is replaced by the following:

  • (b)the amount of tax, if any, deemed by Insertion start any of subsections Insertion end 120(2) or (2.‍2), 122.‍5(3) Insertion start to (3.‍003) Insertion end , 122.‍51(2), 122.‍7(2) or (3), Insertion start 122.‍72(1) Insertion end , 122.‍8(4), 122.‍9(2), 122.‍91(1), 125.‍4(3), 125.‍5(3), 125.‍6(2) or (2.‍1), 127.‍1(1), 127.‍41(3) or 210.‍2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year.

(2)Paragraph 152(1.‍2)‍(d) of the Act is replaced by the following:

  • (d)the Minister determines the amount deemed by Insertion start any of subsections Insertion end 122.‍5(3) Insertion start to (3.‍003) Insertion end , Insertion start 122.‍72(1) Insertion end or 122.‍8(4) to have been paid by an individual for a taxation year to be nil, subsection (2) does not apply to the determination unless the individual requests a notice of determination from the Minister.

(3)Subparagraph 152(4)‍(b)‍(ii) of the French version of the Act is replaced by the following:
  • (ii)est établie par suite de l’établissement, en application du présent Insertion start alinéa Insertion end ou du paragraphe (6), d’une cotisation ou d’une nouvelle cotisation concernant l’impôt payable par un autre contribuable,

(4)Paragraph 152(4)‍(b.‍1) of the Act is replaced by the following:

  • (b.‍1)an information return described in subsection 237.‍1(7) that is required to be filed in respect of a deduction or claim made by the taxpayer in relation to a tax shelter is not filed as and when required, and the assessment, reassessment or additional assessment is made before the day that is three years after the day on which the information return is filed;

(5)Subsection 152(4) of the Act is amended by adding the following after paragraph (b.‍4):

  • Start of inserted block

    (b.‍5)an information return that is required to be filed under subsection 237.‍3(2) in respect of a reportable transaction (as defined in subsection 237.‍3(1)) entered into by the taxpayer, or by a person for the benefit of the taxpayer, is not filed as and when required, and the assessment, reassessment or additional assessment is made before the day that is

    • (i)in the case of a taxpayer described in paragraph (3.‍1)‍(a), four years after the day on which the information return is filed, or

    • (ii)in any other case, three years after the day on which the information return is filed;

  • (b.‍6)an information return that is required to be filed under subsection 237.‍4(4) in respect of a notifiable transaction (as defined in subsection 237.‍4(1)) entered into by the taxpayer, or by a person for the benefit of the taxpayer, is not filed as and when required, and the assessment, reassessment or additional assessment is made before the day that is

    • (i)in the case of a taxpayer described in paragraph (3.‍1)‍(a), four years after the day on which the information return is filed, or

    • (ii)in any other case, three years after the day on which the information return is filed;

  • (b.‍7)an information return that is required to be filed under subsection 237.‍5(2) in respect of a reportable uncertain tax treatment (as defined in subsection 237.‍5(1)) of the taxpayer is not filed as and when required, and the assessment, reassessment or additional assessment is made before the day that is

    • (i)in the case of a taxpayer described in paragraph (3.‍1)‍(a), four years after the day on which the information return is filed, or

    • (ii)in any other case, three years after the day on which the information return is filed;

      End of inserted block

(6)The portion of subsection 152(4.‍01) of the Act before paragraph (a) is replaced by the following:

Extended period of assessment
(4.‍01)Notwithstanding subsections (4) and (5), an assessment, reassessment or additional assessment to which any of paragraphs (4)‍(a) Insertion start to Insertion end (b.‍1) or (b.‍3) Insertion start to Insertion end (c) applies in respect of a taxpayer for a taxation year may be made after the taxpayer’s normal reassessment period in respect of the year to the extent that, but only to the extent that, it can reasonably be regarded as relating to,

(7)The portion of paragraph 152(4.‍01)‍(b) of the Act before subparagraph (i) is replaced by the following:

  • (b)if any of paragraphs (4)‍(b), (b.‍1) Insertion start or (b.‍5) to Insertion end (c) applies to the assessment, reassessment or additional assessment,

(8)Paragraph 152(4.‍01)‍(b) of the Act is amended by striking out “or” at the end of subparagraph (vi) and by replacing subparagraph (vii) with the following:

  • (vii)the deduction or claim referred to in paragraph (4)‍(b.‍1),

  • Start of inserted block

    (viii)the reportable transaction referred to in paragraph (4)‍(b.‍5),

  • (ix)the notifiable transaction referred to in paragraph (4)‍(b.‍6), or

  • (x)any transaction, or series of transactions, to which the reportable uncertain tax treatment referred to in paragraph (4)‍(b.‍7) relates;

    End of inserted block

(9)Paragraph 152(4.‍2)‍(b) of the Act is replaced by the following:

  • (b)redetermine the amount, if any, deemed by Insertion start any of subsections Insertion end 120(2) or (2.‍2), 122.‍5(3) Insertion start to (3.‍003) Insertion end , 122.‍51(2), 122.‍7(2) or (3), 122.‍8(4), 122.‍9(2), 122.‍91(1), 127.‍1(1), 127.‍41(3) or 210.‍2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year or deemed by subsection 122.‍61(1) to be an overpayment on account of the taxpayer’s liability under this Part for the year.

(10)Subsections (4) to (8) apply to taxation years that begin after 2022.

50(1)The portion of subsection 153(1) of the Act after paragraph (v) is replaced by the following:

Insertion start must Insertion end deduct or withhold from the payment the amount determined in accordance with prescribed rules and Insertion start must Insertion end , at the prescribed time, remit that amount to the Receiver General on account of the payee’s tax for the year under this Part or Part XI.‍3, as the case may be, and, where at that prescribed time the person is a prescribed person, the remittance Insertion start must Insertion end be made to the account of the Receiver General at Insertion start or through Insertion end a designated financial institution.

(2)Subsection 153(1.‍4) of the Act is replaced by the following:

Exception — remittance to designated financial institution
(1.‍4)For the purpose of subsection (1), a prescribed person referred to in that subsection is deemed to have remitted an amount to the account of the Receiver General at Insertion start or through Insertion end a designated financial institution if the prescribed person has remitted the amount to the Receiver General at least one day before the day upon which the amount is due.

(3)Subsections (1) and (2) apply in respect of payments and remittances made after 2021.

51(1)Paragraph 160.‍1(1)‍(b) of the Act is replaced by the following:

  • (b)the taxpayer shall pay to the Receiver General interest at the prescribed rate on the excess (other than any portion Insertion start of the excess Insertion end that can reasonably be considered to arise as a consequence of the operation of section 122.‍5, 122.‍61, Insertion start 122.‍72 Insertion end or 122.‍8) from the day it became payable to the date of payment.

(2)Paragraph 160.‍1(1.‍1)‍(b) of the Act is replaced by the following:

  • (b)the total of the amounts deemed by subsection 122.‍5(3), (3.‍002) or Insertion start (3.‍003) Insertion end to have been paid by the individual during those specified months.

(3)Subsection 160.‍1(3) of the Act is replaced by the following:

Assessment
(3)The Minister may at any time assess a taxpayer in respect of any amount payable by the taxpayer because of any of subsections (1) to (1.‍2) or for which the taxpayer is liable because of subsection (2.‍1) or (2.‍2), and the provisions of this Division (including, for greater certainty, the provisions in respect of interest payable) apply, with any modifications that the circumstances require, in respect of an assessment made under this section, as though it were made under section 152 in respect of taxes payable under this Part, except that no interest is payable on an amount assessed in respect of an excess referred to in subsection (1) that can reasonably be considered to arise as a consequence of the operation of section 122.‍5, 122.‍61, Insertion start 122.‍72 Insertion end or 122.‍8.
52(1)The Act is amended by adding the following after section 160.‍4:
Start of inserted block
Electronic Payments
End of inserted block
Definitions
Start of inserted block
160.‍5(1)The following definitions apply in this section.

designated financial institution has the same meaning as in subsection 153(6).‍ (institution financière désignée)

electronic payment means any payment or remittance to the Receiver General that is made through electronic services offered by a designated financial institution or by any electronic means specified by the Minister.‍ (paiement électronique)

End of inserted block
Requirement – electronic payments
Start of inserted block
(2)The remittance or payment of an amount to the Receiver General must be made as an electronic payment if the amount of the remittance or payment exceeds $10,000, unless the payor or remitter cannot reasonably remit or pay the amount in that manner.
End of inserted block

(2)Subsection (1) applies in respect of payments and remittances made after 2023.

53Paragraph 161(11)‍(b.‍1) of the Act is replaced by the following:

  • (b.‍1)in the case of a penalty under subsection 237.‍1(7.‍4), 237.‍3(8), Insertion start 237.‍4(12) Insertion end or Insertion start 237.‍5(5) Insertion end , from the day on which the taxpayer became liable to the penalty to the day of payment; and

54(1)Paragraph 162(7.‍02)‍(a) of the Act is replaced by the following:

  • (a)where the number of those information returns is greater than Insertion start 5 Insertion end and less than Insertion start 51 Insertion end , $ Insertion start 125 Insertion end ;

  • Insertion start (a.‍1) Insertion end where the number of those information returns is greater than 50 and less than 251, $250;

(2)Section 162 of the Act is amended by adding the following after subsection (7.‍3):

Penalty — electronic payments
Start of inserted block
(7.‍4)Every person who fails to comply with subsection 160.‍5(2) is liable to a penalty equal to $100 for each such failure.
End of inserted block
(3)Subsection 162(8.‍1) of the Act is replaced by the following:
Rules — partnership liable to a penalty
(8.‍1)If a partnership is liable to a penalty under any of subsections (5) to (7.‍1), (7.‍3), Insertion start (7.‍4) Insertion end , (8) and (10), then sections 152, 158 to 160.‍1, 161 and 164 to 167 and Division J apply, with any modifications that the circumstances require, to the penalty as if the partnership were a corporation.

(4)Subsection (1) applies in respect of information returns filed after 2023.

(5)Subsections (2) and (3) apply in respect of payments and remittances made after 2023.

55Subsection 163(2.‍9) of the Act is replaced by the following:

Partnership liable to penalty
(2.‍9)If a partnership is liable to a penalty under paragraph (2)‍(i), subsection (2.‍4) or (2.‍901) or section 163.‍2, 237.‍1, 237.‍3 or Insertion start 237.‍4 Insertion end , sections 152, 158 to 160.‍1, 161 and 164 to 167 and Division J apply, with any changes that the circumstances require, in respect of the penalty as if the partnership were a corporation.

56(1)Section 164 of the Act is amended by adding the following after subsection (2.‍21):

Application respecting refunds under section 122.‍72
Start of inserted block
(2.‍22)Where an amount deemed under section 122.‍72 to be paid by an individual during a month specified for a taxation year is applied under subsection (2) to a liability of the individual and the individual’s return of income for the year is filed on or before the individual’s balance-due day for the year, the amount is deemed to have been so applied on the day on which the amount would have been refunded if the individual were not liable to make a payment to His Majesty in right of Canada.
End of inserted block

(2)The portion of subsection 164(3) of the Act before paragraph (a) is replaced by the following:

Interest on refunds and repayments
(3)If, under this section, an amount in respect of a taxation year (other than an amount, or a portion of the amount, that can reasonably be considered to arise from the operation of section 122.‍5, 122.‍61, Insertion start 122.‍72 Insertion end , 122.‍8 or 125.‍7) is refunded or repaid to a taxpayer or applied to another liability of the taxpayer, the Minister shall pay or apply interest on it at the prescribed rate for the period that begins on the day that is the latest of the days referred to in the following paragraphs and that ends on the day on which the amount is refunded, repaid or applied:

(3)Subsections (1) and (2) apply to taxation years that begin after 2022.

57(1)The portion of subsection 189(6.‍1) of the Act before paragraph (a) is replaced by the following:

Revoked charity to file returns
(6.‍1) Insertion start If the registration of a taxpayer as a registered charity has been revoked (and subsection 188(2.‍1) does not apply to the taxpayer), the Insertion end taxpayer shall, on or before the day that is one year from the end of the taxation year Insertion start referred to in paragraph 188(1)‍(a) Insertion end , and without notice or demand,

(2)The portion of subsection 189(8) of the Act before paragraph (a) is replaced by the following:

Provisions applicable to Part
(8)Subsections 150(2) and (3), sections 152 and 158, subsection 161(11), sections 162 to 167 and Division J of Part I apply in respect of an amount assessed under this Part and of a notice of suspension under subsection 188.‍2(1), (2) or Insertion start (2.‍1) Insertion end as if the notice were a notice of assessment made under section 152, with any modifications that the circumstances require including, for greater certainty, that a notice of suspension that is reconsidered or reassessed may be confirmed or vacated, but not varied, except that

(3)Subsection (1) applies in respect of taxation years that end after August 9, 2022.

(4)Subsection (2) is deemed to have come into force on August 9, 2022.

58(1)Paragraph (a) of the description of J in subsection 204.‍2(1.‍2) of the Act is replaced by the following:

(a)the total of all amounts each of which is

Insertion start (i) Insertion end an amount received by the individual in the year and before that time out of or under a pooled registered pension plan, a registered retirement savings plan, a registered retirement income fund or a specified pension plan and included in computing the individual’s income for the year, Insertion start or Insertion end

Start of inserted block

(ii)an amount included in computing the individual’s income for the year under any of subsections 146.‍01(4) to (6) and 146.‍02(4) to (6)

End of inserted block

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

59(1)Section 204.‍5 of the Act is replaced by the following:

Publication
204.‍5Each year the Minister shall Insertion start make available to the public, in such a manner as the Minister deems appropriate, the names of Insertion end all registered investments as of December 31 of the preceding year.

(2)Subsection (1) is deemed to have come into force on August 9, 2022.

60(1)Subparagraph (a)‍(ii) of the definition advantage in subsection 207.‍01(1) of the Act is replaced by the following:

  • (ii)a loan or an indebtedness (including, in the case of a TFSA, Insertion start a loan or an indebtedness in respect of which the conditions in subsection 146.‍2(4) or (4.‍1) are met Insertion end ) the terms and conditions of which are terms and conditions that persons dealing at arm’s length with each other would have entered into,

(2)The portion of subparagraph (b)‍(i) of the definition advantage in subsection 207.‍01(1) of the Act before clause (A) is replaced by the following:

  • Start of inserted block

    (i)a transaction or event or a series of transactions or events (other than a payment, not exceeding a reasonable amount, by the controlling individual of the registered plan where the payment would be described by paragraph 20(1)‍(bb) if the reference to “the taxpayer” in subparagraph (i) of that paragraph were read as a reference to “a controlling individual of a registered plan” and if the references to “the taxpayer” in subparagraph (ii) of that paragraph were read as references to “the registered plan”) that

    End of inserted block

(3)Section 207.‍01 of the Act is amended by adding the following after subsection (1):

Interpretation
Start of inserted block
(2)For the purposes of this section, income includes dividends described in section 83.
End of inserted block

(4)Subsection (1) is deemed to have come into force on August 9, 2022.

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

(6)Subsection (3) applies in respect of dividends received on or after August 9, 2022.

61(1)Paragraph (c) of the description of B in subsection 207.‍8(2) of the Act is replaced by the following:

Start of inserted block

(c)in any other case, the percentage (rounded to the nearest half percentage, or where it is equidistant from two such consecutive half percentages, to the higher of the two) determined by the formula

E × F
where

E
is the highest individual percentage for the year, and

F
is the percentage referred to in subsection 120(1); and

End of inserted block

(2)Subsection (1) applies to the 2022 and subsequent taxation years.

62(1)Subsection 212(13.‍2) of the Act is replaced by the following:

Application of Part XIII tax — payer subject to Part I
(13.‍2)For the purposes of this Part, Insertion start if Insertion end a particular non-resident person pays or credits an amount (other than an amount to which subsection (13) applies) to another non-resident person Insertion start or to a partnership (other than a Canadian partnership), the particular non-resident person Insertion end is deemed to be a person resident in Canada in respect of the portion of the amount that is deductible in computing
  • Insertion start (a) Insertion end the particular non-resident person’s taxable income earned in Canada from a source that is neither a treaty-protected business nor a treaty-protected property; Insertion start or Insertion end

  • Start of inserted block

    (b)the amount on which the particular non-resident person is liable to pay tax under Part I because of section 216.

    End of inserted block

(2)Subsection 212(13.‍3) of the Act is replaced by the following:

Application of Part XIII to authorized foreign bank
(13.‍3)An authorized foreign bank is deemed to be Insertion start a person Insertion end resident in Canada for the purposes of
  • (a)this Part, in respect of any amount paid or credited to or by the bank in respect of its Canadian banking business; and

  • (b)the application in paragraph (13.‍1)‍(b) Insertion start and subsection (13.‍2) Insertion end of the definition Canadian partnership ( Insertion start as defined in subsection 248(1) Insertion end ), in respect of a Insertion start membership Insertion end interest Insertion start in a Insertion end partnership held by the bank in the course of its Canadian banking business.

(3)Subsections (1) and (2) apply to amounts paid or credited after 2022.

63(1)Clause (B) of the description of A in subparagraph 212.‍3(9)‍(b)‍(ii) of the Act is replaced by the following:

(B)as a reduction of paid-up capital or dividend in respect of a class of shares of the capital stock of the subject corporation or the portion, of a reduction of paid-up capital or dividend in respect of a class of shares of the capital stock of a foreign affiliate of the particular corporation that were substituted for shares of the capital stock of the subject corporation, that can reasonably be considered to relate to shares Insertion start of the capital stock of the subject corporation Insertion end , or

(2)The description of A in subparagraph 212.‍3(9)‍(b)‍(ii) of the Act, as amended by subsection (1), is replaced by the following:

A
is the amount that is equal to the fair market value of property that

Insertion start (A) Insertion end the particular corporation demonstrates has been received at the subsequent time by it or by a corporation resident in Canada that was not dealing at arm’s length with the particular corporation at that time ( Insertion start either of which is Insertion end in this subparagraph referred to as the “recipient corporation”)

Insertion start (I) Insertion end as proceeds from the disposition of the acquired shares, or other shares to the extent that the proceeds from the disposition of those other shares can reasonably be considered to relate to the acquired shares or to shares of the capital stock of the subject corporation in respect of which an investment described in paragraph (10)‍(b) was made,

Insertion start (II) Insertion end as a reduction of paid-up capital or dividend in respect of a class of shares of the capital stock of the subject corporation or the portion, of a reduction of paid-up capital or dividend in respect of a class of shares of the capital stock of a foreign affiliate of the particular corporation that were substituted for shares of the capital stock of the subject corporation, that can reasonably be considered to relate to shares Insertion start of the capital stock of the subject corporation Insertion end , or

Insertion start (III) Insertion end if the investment is described in paragraph (10)‍(c) or (d) or subparagraph (10)‍(e)‍(i),

Insertion start 1 Insertion end as a repayment of or as proceeds from the disposition of the debt obligation or amount owing, Insertion start or Insertion end

Insertion start 2 Insertion end as interest on the debt obligation or amount owing, Insertion start and Insertion end

Start of inserted block

(B)is not received by the recipient corporation

End of inserted block
Start of inserted block

(I)as a result of an investment, made by the recipient corporation, to which subsection (16) or (18) applies, or

(II)as proceeds from a disposition of property to a corporation resident in Canada for which the acquisition is an investment to which subsection (16) or (18) applies, or to a partnership of which such a corporation is a member,

End of inserted block

(3)Subsection (1) applies in respect of transactions and events that occur after March 28, 2012.

(4)Subsection (2) applies in respect of transactions and events that occur on or after August 9, 2022.

64Paragraph 214(3)‍(g) of the Act is repealed.

65Paragraph 227(10)‍(b) of the Act is replaced by the following:

  • (b)subsection 237.‍1(7.‍4) or (7.‍5), 237.‍3(8), Insertion start 237.‍4(12) or 237.‍5(5) Insertion end by a person or partnership,

66(1)Paragraph (b) of the definition specified Canadian entity in subsection 233.‍3(1) of the Act is replaced by the following:

  • (b)a partnership where the total of all amounts, each of which is a share of the partnership’s income or loss for the period of a member Insertion start that is a Insertion end non-resident Insertion start person or a taxpayer referred to in any of subparagraphs (a)‍(i) to (viii) Insertion end , is less than 90% of the income or loss of the partnership for the period, and, where the income and loss of the partnership are nil for the period, the income of the partnership for the period is deemed to be $1,000,000 for the purpose of this paragraph.‍ (entité canadienne déterminée)

(2)Paragraph (n) of the definition specified foreign property in subsection 233.‍3(1) of the Act is replaced by the following:

  • (n)an interest in a trust Insertion start that is Insertion end described in paragraph (a) or (b) of the definition exempt trust in subsection 233.‍2(1), Insertion start or that would be described in paragraph (b) of that definition if that paragraph were read as follows Insertion end :

    • Start of inserted block

      (b)a trust that

      • (i)is resident in Australia or New Zealand for income tax purposes under the laws of Australia or New Zealand, as the case may be,

      • (ii)qualifies for a reduced rate of income tax under the income tax laws of its country of residence referred to in subparagraph (i),

      • (iii)is established principally for the purpose of administering or providing benefits under a superannuation, pension or retirement fund or plan, and

      • (iv)is maintained primarily for the benefit of individuals that are resident in Australia or New Zealand, as the case may be; or

        End of inserted block

(3)Subsections (1) and (2) apply to taxation years and fiscal periods that end after August 9, 2022.

67Paragraph 237(1)‍(b) of the English version of the Act is replaced by the following:

  • (b)within 15 days after the individual is requested by the person to provide Insertion start the individual’s Insertion end Social Insurance Number,

68(1)The definition solicitor-client privilege in subsection 237.‍3(1) of the Act is repealed.

(2)The definition avoidance transaction in subsection 237.‍3(1) of the Act is replaced by the following:

Start of inserted block

avoidance transaction means a transaction if it may reasonably be considered that one of the main purposes of the transaction, or of a series of transactions of which the transaction is a part, is to obtain a tax benefit.‍ (opération d’évitement)

End of inserted block

(3)Paragraph (a) of the definition contractual protection in subsection 237.‍3(1) of the Act is replaced by the following:

  • (a)any form of insurance or other protection, including, without limiting the generality of the foregoing, an indemnity, compensation or a guarantee, that

    • (i)either immediately or in the future and either absolutely or contingently,

      • Insertion start (A) Insertion end protects a person against a failure of the transaction or series to achieve any tax benefit from the transaction or series, or

      • Insertion start (B) Insertion end pays for or reimburses any expense, fee, tax, interest, penalty or similar amount that may be incurred by a person in the course of a dispute in respect of a tax benefit from the transaction or series, and

    • Start of inserted block

      (ii)is not

      • (A)standard professional liability insurance, or

      • (B)integral to an agreement between persons acting at arm’s length for the sale or transfer of all or part of a business (either directly or through the sale or transfer of one or more corporations, partnerships or trusts) where it is reasonable to consider that the insurance or protection

        • (I)is intended to ensure that the purchase price paid under the agreement takes into account any liabilities of the business immediately prior to the sale or transfer, and

        • (II)is obtained primarily for purposes other than to achieve any tax benefit from the transaction or series; and

          End of inserted block

(4)The portion of the definition reportable transaction in subsection 237.‍3(1) of the Act before subparagraph (a)‍(i) is replaced by the following:

reportable transaction, at any time, means an avoidance transaction that is entered into by or for the benefit of a person, and each transaction that is part of a series of transactions that includes the avoidance transaction, if at the time any of the following paragraphs Insertion start applies Insertion end in respect of the avoidance transaction or series:

  • (a)an advisor or promoter, or any person who does not deal at arm’s length with the advisor or promoter, has or had an entitlement, either immediately or in the future and either absolutely or contingently, to a fee ( Insertion start other than a fee in relation to a prescribed form required to be filed under subsection 37(11) Insertion end ) that to any extent

(5)The portion of paragraph (b) of the definition reportable transaction in subsection 237.‍3(1) of the Act before subparagraph (i) is replaced by the following:

  • (b)an advisor or promoter in respect of the avoidance transaction or series, or any person who does not deal at arm’s length with the advisor or promoter, obtains or obtained confidential protection, Insertion start and the prohibition on disclosure provided under the confidential protection provides confidentiality in respect of a tax treatment in relation to Insertion end the avoidance transaction or series,

(6)Subsection 237.‍3(1) of the Act is amended by adding the following in alphabetical order:

Start of inserted block

tax treatment, of a person, means a treatment in respect of a transaction, or series of transactions, that the person uses, or plans to use, in a return of income or an information return (or would use in a return of income or an information return if a return of income or an information return were filed) and includes the person’s decision not to include a particular amount in a return of income or an information return.‍ (traitement fiscal)

End of inserted block

(7)Paragraph 237.‍3(2)‍(a) of the Act is replaced by the following:

  • Start of inserted block

    (a)every person for whom a tax benefit results, or for whom a tax benefit is expected to result based on the person’s tax treatment of the reportable transaction, from

    End of inserted block
    • Insertion start (i) Insertion end the reportable transaction,

    • Insertion start (ii) Insertion end any other reportable transaction that is part of a series of transactions that includes the reportable transaction, or

    • Start of inserted block

      (iii)a series of transactions that includes the reportable transaction;

      End of inserted block

(8)Subsections 237.‍3(4) and (5) of the Act are replaced by the following:

Clerical or secretarial services
Start of inserted block
(4)For greater certainty, subsection (2) does not apply to a person solely because the person provided clerical services or secretarial services with respect to a reportable transaction.
End of inserted block
Time for filing return
(5)An information return required Insertion start under Insertion end subsection (2) to be filed with the Minister Insertion start for Insertion end a reportable transaction Insertion start must be filed by Insertion end
  • Start of inserted block

    (a)a person described in paragraph (2)‍(a) or (b) on or before the particular day that is 90 days after the earliest of

    • (i)the day on which the person becomes contractually obligated to enter into the reportable transaction,

    • (ii)the day on which the person enters into the reportable transaction, and

    • (iii)if the person is described in paragraph (2)‍(a) and a person described in paragraph (2)‍(b) enters into the reportable transaction for the benefit of the person described in paragraph (2)‍(a), the day on which the reportable transaction is entered into; and

  • (b)a person described in paragraph (2)‍(c) or (d) no later than the earliest particular day described in paragraph (a) for a person described in paragraph (2)‍(a) or (b) in respect of the reportable transaction.

    End of inserted block

(9)The portion of subsection 237.‍3(6) of the Act before paragraph (a) is replaced by the following:

Tax benefits disallowed
(6) Insertion start At any time, section 245 is to be read without reference to its subsection (4) in respect of any Insertion end reportable transaction in respect of a person described in paragraph (2)‍(a) in relation to the reportable transaction if, at that time,

(10)Subsection 237.‍3(8) of the Act is replaced by the following:

Penalty
(8)Every person who fails to file an information return in respect of a reportable transaction as required under subsection (2) on or before the day required under subsection (5) is liable to a penalty equal to
  • Start of inserted block

    (a)if the person is described in paragraph (2)‍(a) or (b),

    • (i)if the person is a corporation and the carrying value of the corporation’s assets is greater than or equal to $50 million for its last taxation year that ends prior to the day on which the information return is required to be filed under subsection (5), $2,000 multiplied by the number of weeks during which the failure continues, to a maximum amount equal to the greater of

      • (A)$100,000, and

      • (B)25% of the amount of the tax benefit in respect of the reportable transaction, and

    • (ii)in any other case, $500 multiplied by the number of weeks during which the failure continues, to a maximum amount equal to the greater of

      • (A)$25,000, and

      • (B)25% of the amount of the tax benefit in respect of the reportable transaction; and

  • (b)if the person is described in paragraph (2)‍(c) or (d), the total of

    • (i)the amount of the fees charged by that person in respect of the reportable transaction,

    • (ii)$10,000, and

    • (iii)$1,000 multiplied by the number of days during which the failure continues, up to a maximum of $100,000.

      End of inserted block
Penalty – deeming rule
Start of inserted block
(8.‍1)If a person described in both paragraphs (2)‍(b) and (d) is liable to a penalty under subsection (8) in respect of a reportable transaction, the amount of the penalty is deemed to be equal to the greater of the amounts determined under paragraphs (8)‍(a) and (b).
End of inserted block
Carrying value
Start of inserted block
(8.‍2)For the purpose of subparagraph (8)‍(a)‍(i), the carrying value of the assets of a corporation is to be determined in accordance with paragraphs 181(3)‍(a) and (b).
End of inserted block

(11)Subsections 237.‍3(9) and (10) of the Act are repealed.

(12)Subsection 237.‍3(13) of the Act is replaced by the following:

Application of sections 231 to 231.‍3
(13)Without restricting the generality of sections 231 to 231.‍3, even if a return of income has not been filed by a taxpayer under section 150 for Insertion start a Insertion end taxation year of the taxpayer in which a Insertion start transaction occurs that is relevant to the tax benefit referred to in paragraph (2)‍(a) that results (or is expected to result) from the reportable transaction Insertion end , sections 231 to 231.‍3 apply, with such modifications as the circumstances require, for the purpose of permitting the Minister to verify or ascertain any information in respect of Insertion start the Insertion end reportable transaction.

(13)Subsection 237.‍3(17) of the Act is replaced by the following:

Solicitor-client privilege
Start of inserted block
(17)For greater certainty, this section does not require the disclosure of information if it is reasonable to believe that the information is subject to solicitor-client privilege.
End of inserted block

(14)Subsections (1) to (10) and (12) to (13) apply with respect to reportable transactions entered into after this Act receives royal assent. The provisions of the Act repealed by subsection (11) continue to apply in respect of reportable transactions entered into before this Act receives royal assent.

69(1)The Act is amended by adding the following after section 237.‍3:

Definitions
Start of inserted block
237.‍4(1)The following definitions apply in this section.

advisor, in respect of a notifiable transaction, means each person who provides, directly or indirectly in any manner whatever, any assistance or advice with respect to creating, developing, planning, organizing or implementing the notifiable transaction, to another person (including any person who enters into the notifiable transaction for the benefit of another person).‍ (conseiller)

fee, in respect of a notifiable transaction, has the same meaning as in subsection 237.‍3(1).‍ (honoraires)

notifiable transaction, at any time, means

  • (a)a transaction that is the same as, or substantially similar to, a transaction that is designated at that time by the Minister under subsection (3); and

  • (b)a transaction in a series of transactions that is the same as, or substantially similar to, a series of transactions that is designated at that time by the Minister under subsection (3).‍ (opération à signaler)

person includes a partnership.‍ (personne)

promoter, in respect of a notifiable transaction, has the same meaning as in subsection 237.‍3(1).‍ (promoteur)

tax benefit has the same meaning as in subsection 245(1).‍ (avantage fiscal)

tax treatment has the same meaning as in subsection 237.‍3(1).‍ (traitement fiscal)

transaction has the same meaning as in subsection 245(1).‍ (opération)

End of inserted block
Interpretation – substantially similar
Start of inserted block
(2)For the purposes of the definition notifiable transaction in subsection (1), the term “substantially similar”
  • (a)includes any transaction, or series of transactions, in respect of which a person is expected to obtain the same or similar types of tax consequences (as defined in subsection 245(1)) and that is either factually similar or based on the same or similar tax strategy; and

  • (b)is to be interpreted broadly in favour of disclosure.

    End of inserted block
Designation of notifiable transactions
Start of inserted block
(3)The Minister may designate for the purposes of this section, with the concurrence of the Minister of Finance, in such manner as the Minister considers appropriate, transactions or series of transactions.
End of inserted block
Requirement to file return
Start of inserted block
(4)An information return in prescribed form and containing prescribed information in respect of a notifiable transaction must be filed with the Minister by
  • (a)every person for whom a tax benefit results, or for whom a tax benefit is expected to result based on the person’s tax treatment of the notifiable transaction, from

    • (i)the notifiable transaction,

    • (ii)any other notifiable transaction that is part of a series of transactions that includes the notifiable transaction, or

    • (iii)a series of transactions that includes the notifiable transaction;

  • (b)every person who has entered into, for the benefit of a person described in paragraph (a), the notifiable transaction;

  • (c)every advisor or promoter in respect of the notifiable transaction; and

  • (d)every person who is not dealing at arm’s length with an advisor or promoter described in paragraph (c) and who is or was entitled, either immediately or in the future and either absolutely or contingently, to a fee in respect of the notifiable transaction.

    End of inserted block
Application
Start of inserted block
(5)For the purpose of subsection (4), if any particular person that is an employer or a partnership is required to file an information return in respect of a notifiable transaction under paragraph (4)‍(c) or (d), the filing of an information return required under those paragraphs by the particular person in respect of the notifiable transaction in prescribed form and manner is deemed to have been made by each employee or partner of the particular person in respect of the particular transaction.
End of inserted block
Due diligence
Start of inserted block
(6)Paragraphs (4)‍(a) and (b) do not apply to a person in respect of a notifiable transaction if the person has exercised the degree of care, diligence and skill in determining whether the transaction is a notifiable transaction that a reasonably prudent person would have exercised in comparable circumstances.
End of inserted block
Reasonable expectation to know
Start of inserted block
(7)Paragraphs (4)‍(c) and (d) do not apply to a person in respect of a notifiable transaction unless the person knows or should reasonably be expected to know that the transaction was a notifiable transaction.
End of inserted block
Clerical or secretarial services
Start of inserted block
(8)For greater certainty, subsection (4) does not apply to a person solely because the person provided clerical services or secretarial services with respect to the notifiable transaction.
End of inserted block
Time for filing return
Start of inserted block
(9)An information return required under subsection (4) to be filed with the Minister for a notifiable transaction must be filed by
  • (a)a person described in paragraph (4)‍(a) or (b) on or before the particular day that is 90 days after the earliest of

    • (i)the day on which the person becomes contractually obligated to enter into the notifiable transaction,

    • (ii)the day on which the person enters into the notifiable transaction, and

    • (iii)if the person is described in paragraph (4)‍(a) and a person described in paragraph (4)‍(b) enters into the notifiable transaction for the benefit of the person described in paragraph (4)‍(a), the day on which the notifiable transaction is entered into; and

  • (b)a person described in paragraph (4)‍(c) or (d) no later than the earliest particular day described in paragraph (a) for a person described in paragraph (4)‍(a) or (b) in respect of the notifiable transaction.

    End of inserted block
Clarification of reporting transactions in series
Start of inserted block
(10)For greater certainty, if subsection (4) applies to a person in respect of each transaction that is part of a series of transactions that includes a notifiable transaction, the filing of the information return by the person that reports each transaction in the series is deemed to satisfy the obligation of the person under subsection (4) in respect of each transaction so reported.
End of inserted block
Assessments
Start of inserted block
(11)Notwithstanding subsections 152(4) to (5), the Minister may make any assessments, determinations and redeterminations that are necessary to give effect to subsection (12).
End of inserted block
Penalty
Start of inserted block
(12)Every person who fails to file an information return in respect of a notifiable transaction as required under subsection (4) on or before the particular day required under subsection (9) is liable to a penalty equal to
  • (a)if the person is described in paragraph (4)‍(a) or (b),

    • (i)if the person is a corporation and the carrying value of the corporation’s assets is greater than or equal to $50 million for its last taxation year that ends prior to the day on which the information return is required to be filed under subsection (4), $2,000 multiplied by the number of weeks during which the failure continues, to a maximum amount equal to the greater of

      • (A)$100,000, and

      • (B)25% of the amount of the tax benefit in respect of the notifiable transaction, and

    • (ii)in any other case, $500 multiplied by the number of weeks during which the failure continues, to a maximum amount equal to the greater of

      • (A)$25,000, and

      • (B)25% of the amount of the tax benefit in respect of the notifiable transaction; and

  • (b)if the person is described in paragraph (4)‍(c) or (d), the total of

    • (i)the amount of the fees charged by that person in respect of the notifiable transaction,

    • (ii)$10,000, and

    • (iii)$1,000 multiplied by the number of days during which the failure continues, up to a maximum of $100,000.

      End of inserted block
Penalty – deeming rule
Start of inserted block
(13)If a person described in both paragraphs (4)‍(b) and (d) is liable to a penalty under subsection (12) in respect of a notifiable transaction, the amount of the penalty is deemed to be equal to the greater of the amounts determined under paragraphs (12)‍(a) and (b).
End of inserted block
Penalty – non-application
Start of inserted block
(14)For greater certainty, if any person is deemed to have filed an information return in prescribed form and manner in respect of a particular notifiable transaction under subsection (5), that person is not liable to a penalty under subsection (12) in respect of the particular transaction.
End of inserted block
Carrying value
Start of inserted block
(15)For the purpose of subparagraph (12)‍(a)‍(i), the carrying value of the assets of a corporation is to be determined in accordance with paragraphs 181(3)‍(a) and (b).
End of inserted block
Return – not an admission
Start of inserted block
(16)The filing of an information return under this section by a person in respect of a notifiable transaction is not an admission by the person that any transaction is part of a series of transactions.
End of inserted block
Application of sections 231 to 231.‍3
Start of inserted block
(17)Without restricting the generality of sections 231 to 231.‍3, even if a return of income has not been filed by a taxpayer under section 150 for a taxation year of the taxpayer in which a transaction occurs that is relevant to the tax benefit referred to in paragraph (4)‍(a) that results (or is expected to result) from a notifiable transaction, sections 231 to 231.‍3 apply, with such modifications as the circumstances require, for the purpose of permitting the Minister to verify or ascertain any information in respect of the notifiable transaction.
End of inserted block
Solicitor-client privilege
Start of inserted block
(18)For greater certainty, this section does not require the disclosure of information if it is reasonable to believe that the information is subject to solicitor-client privilege.
End of inserted block

(2)Subsection (1) applies with respect to notifiable transactions entered into after this Act receives royal assent.

70(1)The Act is amended by adding the following after section 237.‍4:

Definitions
Start of inserted block
237.‍5(1)The following definitions apply in this section.

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

person includes a partnership.‍ (personne)

relevant financial statements of a corporation for a taxation year, means audited financial statements that are prepared

  • (a)in respect of

    • (i)the corporation, or

    • (ii)a group, of which the corporation is a member, of two or more persons required to prepare consolidated financial statements for financial reporting purposes under applicable accounting principles;

  • (b)in accordance with

    • (i)International Financial Reporting Standards, or

    • (ii)other country-specific generally accepted accounting principles (such as U.‍S. generally accepted accounting principles) relevant for corporations that are listed on a stock exchange outside Canada; and

  • (c)for a period of time that ends in the taxation year.‍ (états financiers de référence)

reportable uncertain tax treatment, of a corporation for a taxation year, means a tax treatment of the corporation in respect of which uncertainty is reflected in relevant financial statements of the corporation for the year.‍ (traitement fiscal incertain à déclarer)

reporting corporation, for a taxation year, means a corporation if

  • (a)the corporation has relevant financial statements for the year;

  • (b)the carrying value of the corporation’s assets is greater than or equal to $50 million at the end of the year; and

  • (c)the corporation is required to file a return of income for the year under section 150.‍ (société déclarante)

tax treatment, of a corporation, means a treatment in respect of a transaction, or series of transactions, that the corporation uses, or plans to use, in a return of income or an information return (or would use in a return of income or an information return if a return of income or an information return were filed) and includes the corporation’s decision not to include a particular amount in a return of income or an information return.‍ (traitement fiscal)

transaction has the same meaning as in subsection 245(1).‍ (opération)

End of inserted block
Filing requirement
Start of inserted block
(2)Every reporting corporation for a taxation year that has one or more reportable uncertain tax treatments for the year must file with the Minister an information return in prescribed form and containing prescribed information in respect of each reportable uncertain tax treatment of the corporation for the year.
End of inserted block
Filing requirement – deadline
Start of inserted block
(3)An information return required under subsection (2) to be filed by a corporation for a taxation year must be filed with the Minister on or before the corporation’s filing-due date for the year.
End of inserted block
Assessments
Start of inserted block
(4)Notwithstanding subsections 152(4) to (5), the Minister may make any assessments, determinations and redeterminations that are necessary to give effect to subsection (5).
End of inserted block
Penalty
Start of inserted block
(5)Every corporation that fails to report a reportable uncertain tax treatment on an information return as required under subsection (2) on or before the day required under subsection (3) is liable to a penalty, for each such failure to report, equal to $2,000 multiplied by the number of weeks during which the failure continues, up to a maximum of $100,000.
End of inserted block
Due diligence
Start of inserted block
(6)A corporation required to file an information return in respect of a reportable uncertain tax treatment is not liable for a penalty under subsection (5) if the corporation has exercised the degree of care, diligence and skill to prevent the failure to file that a reasonably prudent person would have exercised in comparable circumstances.
End of inserted block
Return – not an admission
Start of inserted block
(7)The filing of an information return in respect of a reportable uncertain tax treatment as required under subsection (2) by a corporation is not an admission by the corporation that
  • (a)the tax treatment is not in accordance with this Act or the regulations; or

  • (b)any transaction is part of a series of transactions.

    End of inserted block
Application of sections 231 to 231.‍3
Start of inserted block
(8)Without restricting the generality of sections 231 to 231.‍3, if a corporation is required to file an information return under subsection (2) in respect of a reportable uncertain tax treatment of the corporation for a taxation year, even if a return of income has not been filed by the corporation under section 150 for the year, sections 231 to 231.‍3 apply, with such modifications as the circumstances require, for the purpose of permitting the Minister to verify or ascertain any information in respect of the reportable uncertain tax treatment including, for greater certainty, any information relating to any transaction, or series of transactions, to which the reportable uncertain tax treatment relates.
End of inserted block
Carrying value
Start of inserted block
(9)For the purposes of the definition reporting corporation in subsection (1), the carrying value of the assets of a corporation is to be determined in accordance with paragraphs 181(3)‍(a) and (b).
End of inserted block

(2)Subsection (1) applies to taxation years that begin after 2022, except that subsection 237.‍5(5) of the Act, as enacted by subsection (1), does not apply to taxation years that begin before this Act receives royal assent.

71Paragraph 241(4)‍(d) of the Act is amended by adding the following after subparagraph (xx):

  • Start of inserted block

    (xx.‍1)to an official of

    • (A)the Department of Employment and Social Development or the Department of Health, solely for the purpose of the administration or enforcement of the Canadian Dental Care Plan established under the authority of the Department of Health Act in respect of dental service for individuals, or

    • (B)the Department of Health solely for the purpose of the formulation or evaluation of policy for that plan,

      End of inserted block

72Subsection 244(14.‍1) of the Act is replaced by the following:

Date when electronic notice sent
(14.‍1)If a notice or other communication in respect of Insertion start an individual, other than a notice or other communication that refers to the business number of a person or partnership Insertion end , is made available in electronic format such that it can be read or perceived by Insertion start an individual Insertion end or a computer system or other similar device, the notice or other communication is presumed to be sent to the Insertion start individual Insertion end and received by the Insertion start individual Insertion end on the date that an electronic message is sent, to the electronic address most recently provided by the Insertion start individual Insertion end to the Minister for the purposes of this subsection, informing the Insertion start individual Insertion end that a notice or other communication requiring the Insertion start individual’s Insertion end immediate attention is available in the Insertion start individual’s Insertion end secure electronic account. A notice or other communication is considered to be made available if it is posted by the Minister in the Insertion start individual’s Insertion end secure electronic account and the Insertion start individual Insertion end has authorized that notices or other communications may be made available in this manner and has not before that date revoked that authorization in a manner specified by the Minister.
Date when electronic notice sent — My Business Account
Start of inserted block
(14.‍2)A notice or other communication that is made available in electronic format such that it can be read or perceived by an individual or a computer system or other similar device, and that refers to the business number of a person or partnership, is presumed to be sent to the person or partnership and received by the person or partnership on the date that it is posted by the Minister in the secure electronic account in respect of a business number of the person or partnership, unless the person or partnership has requested, 30 days prior to that date, in a manner specified by the Minister, that the notice or other communication be sent by mail.
End of inserted block

73(1)The definitions small business bond and small business development bond in subsection 248(1) of the Act are repealed.

(2)Paragraph (c) of the definition dividend rental arrangement in subsection 248(1) of the Act is replaced by the following:

  • Start of inserted block

    (b.‍1)any specified hedging transaction, in respect of a DRA share of the person,

    End of inserted block
  • (c)any synthetic equity arrangement ( Insertion start other than a specified hedging transaction Insertion end ), in respect of a DRA share of the person, and

(3)Subparagraph (i.‍1)‍(ii) of the definition term preferred share in subsection 248(1) of the Act is replaced by the following:

  • (ii)it may reasonably be considered that the share was issued or acquired as part of a transaction or event or series of transactions or events one of the main purposes of which was to avoid or limit the application of subsection 112(2.‍1), 138(6) Insertion start or 258(3) Insertion end ,

(4)Subparagraph (j)‍(ii) of the definition term preferred share in subsection 248(1) of the Act is replaced by the following:

  • (ii)one of the main purposes for the issue of the particular share or for the modification of its terms or conditions was to avoid a limitation provided by subsection 112(2.‍1) or 138(6) in respect of a deduction Insertion start or to avoid or limit the application of subsection 258(3) Insertion end ,

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

Start of inserted block

specified hedging transaction, in respect of a DRA share of a person or partnership (referred to in this definition as the “particular person”), means a transaction (in this definition, as defined in subsection 245(1)) or series of transactions that satisfies the following conditions:

  • (a)it is entered into by

    • (i)the particular person if the particular person is a registered securities dealer or a partnership each member of which is a registered securities dealer, or

    • (ii)a registered securities dealer or a partnership each member of which is a registered securities dealer (in either case, referred to in this definition as the “connected dealer”), if the connected dealer does not deal at arm’s length with, or is affiliated with, the particular person,

  • (b)it has the effect, or would have the effect if the transaction or series were entered into by the particular person, of eliminating all or substantially all of the particular person’s risk of loss and opportunity for gain or profit in respect of the DRA share, determined without regard to any other transaction or series entered into in respect of the DRA share,

  • (c)if paragraph 260(6)‍(a) were read without reference to subsection 260(6.‍2), an amount in respect of the transaction or series would be deductible by the particular person or the connected dealer under paragraph 260(6)‍(a), and

  • (d)if the transaction or series is entered into by the connected dealer, it can reasonably be considered that the particular person or connected dealer knew or ought to have known that the effect described in paragraph (b) would result; (opération de couverture déterminée)

    End of inserted block

(6)Subsections (2) and (5) apply in respect of dividends that are paid or become payable on or after April 7, 2022. However, subsections (2) and (5) do not apply in respect of dividends paid or payable before October 2022, if the specified hedging transaction was entered into before April 7, 2022.

(7)Subsections (3) and (4) apply in respect of amounts received on or after August 9, 2022.

74The portion of subsection 249.‍1(1) of the French version of the Act before paragraph (a) is replaced by the following:

Définition de exercice
249.‍1(1)Pour l’application de la présente loi, l’exercice d’une entreprise ou d’un bien d’une personne ou d’une société de personnes s’entend de la période pour laquelle les comptes Insertion start correspondants Insertion end de la personne ou de la société de personnes sont arrêtés pour l’établissement d’une cotisation en vertu de la présente loi. L’exercice ne peut toutefois se prolonger :
75(1)The definitions attribute trading restriction and specified provision in subsection 256.‍1(1) of the Act are replaced by the following:

attribute trading restriction means a restriction on the use of a tax attribute arising on the application, either alone or in combination with other provisions, of any of this section, subsections 10(10) and 13(24), section 37, subsections 66(11.‍4) and (11.‍5), 66.‍7(10) and (11), 69(11) and 88(1.‍1) and (1.‍2), sections 111 and 127, subsections 181.‍1(7), 190.‍1(6) and 249(4), Insertion start section 251.‍2 Insertion end and Insertion start subsection Insertion end 256(7).‍ (restriction au commerce d’attributs)

specified provision means any of subsections 10(10) and 13(24), paragraph 37(1)‍(h), subsections 66(11.‍4) and (11.‍5), 66.‍7(10) and (11), 69(11) and 111(4) Insertion start to Insertion end (5.‍3), paragraphs (j) and (k) of the definition investment tax credit in subsection 127(9), subsections 181.‍1(7) and 190.‍1(6), Insertion start section 251.‍2 Insertion end and any provision of similar effect.‍ (dispositions déterminées)

(2)Subsection 256.‍1(6) of the Act is replaced by the following:

Deemed acquisition of control
(6)If, at any time as part of a transaction or event or series of transactions or events, control of a particular corporation is acquired by a person or group of persons and it can reasonably be concluded that one of the main reasons for the Insertion start transaction or event or any transaction or event in the series of transactions or events Insertion end is so that a specified provision does not apply to one or more corporations, the attribute trading restrictions are deemed to apply to each of those corporations as if control of each of those corporations were acquired at that time.

(3)Subsections (1) and (2) are deemed to have come into force on August 9, 2022.

76(1)Paragraph 260(6)‍(a) of the Act is replaced by the following:

  • (a)if the taxpayer is a registered securities dealer and the particular amount is deemed by subsection (5.‍1) to have been received as a taxable dividend, no more than 2/3 of the particular amount (unless, for greater certainty, the particular amount is an amount for which a deduction in computing income may be claimed under subsection (6.‍1) Insertion start or (6.‍2) Insertion end by the taxpayer); or

(2)Section 260 of the Act is amended by adding the following after subsection (6.‍1):

Deductible amount for registered securities dealer
Start of inserted block
(6.‍2)If a registered securities dealer enters into a specified hedging transaction in respect of a DRA share of the registered securities dealer or a person that does not deal at arm’s length with, or is affiliated with, the registered securities dealer, there may be deducted in computing the income of the registered securities dealer under Part I from a business or property for a taxation year an amount (other than any portion of the amount for which a deduction in computing income may be claimed under subsection (6.‍1) by the registered securities dealer) equal to the lesser of
  • (a)the total of all amounts each of which is an amount that the registered securities dealer becomes obligated in the taxation year to pay to another person as compensation for a dividend under the specified hedging transaction that, if paid, would be deemed by subsection (5.‍1) to have been received by another person as a taxable dividend, and

  • (b)the amount of the dividends that were received in respect of the DRA share by the registered securities dealer or the person that does not deal at arm’s length with, or is affiliated with, the registered securities dealer (as the case may be, referred to as the “dividend recipient” in this paragraph) and that were identified in the dividend recipient’s return of income under Part I for the year as an amount in respect of which no amount was deductible because of subsection 112(2.‍3) in computing the dividend recipient’s taxable income or taxable income earned in Canada.

    End of inserted block

(3)The portion of subsection 260(7) of the Act before paragraph (a) is replaced by the following:

Dividend refund
(7)For the purpose of section 129, if a corporation pays an amount for which no deduction in computing the corporation’s income may be claimed under subsection (6.‍1) Insertion start or (6.‍2) Insertion end and subsection (5.‍1) deems the amount to have been received by another person as a taxable dividend,

(4)Paragraphs 260(11)‍(b) and (c) of the Act are replaced by the following:

  • (b)for the purpose of applying Insertion start paragraphs Insertion end (6.‍1)‍(a) Insertion start and (6.‍2)‍(a) Insertion end in respect of the taxation year, to become obligated to pay its specified proportion, for each fiscal period of the partnership that ends in the taxation year, of the amount the partnership becomes, in that fiscal period, obligated to pay to another person under the arrangement described in that paragraph; and

  • (c)for the purpose of applying section 129 in respect of the taxation year, to have paid

    • (i)if the partnership is not a registered securities dealer, the corporation’s specified proportion, for each fiscal period of the partnership that ends in the taxation year, of each amount paid by the partnership (other than an amount for which a deduction in computing income may be claimed under subsection (6.‍1) Insertion start or (6.‍2) Insertion end by the corporation), and

    • (ii)if the partnership is a registered securities dealer, 1/3 of the corporation’s specified proportion, for each fiscal period of the partnership that ends in the taxation year, of each amount paid by the partnership (other than an amount for which a deduction in computing income may be claimed under subsection (6.‍1) Insertion start or (6.‍2) Insertion end by the corporation).

(5)Subsections (1) to (4) apply in respect of amounts paid or credited on or after April 7, 2022.

77(1)The definition qualifying currency in subsection 261(1) of the Act is amended by adding the following after paragraph (c):

  • Start of inserted block

    (c.‍1)the currency of Japan;

    End of inserted block

(2)Subparagraph 261(18)‍(c)‍(i) of the Act is replaced by the following:

  • (i)is, or would in the absence of subsections (16) and (17) be, in a functional currency year of the transferor Insertion start or the transferee Insertion end and the transferor and the transferee have, or would in the absence of those subsections have, different tax reporting currencies at the transfer time, or

(3)Paragraphs 261(20)‍(a) to (c) of the Act are replaced by the following:

  • (a)the specified transaction was entered into, directly or indirectly, at any time by the taxpayer and a Insertion start person Insertion end (referred to in this subsection as the “related Insertion start person Insertion end ”) to which the taxpayer is at that time related;

  • (b)the taxpayer and the related Insertion start person Insertion end had different tax reporting currencies at any time during the period (referred to in this subsection as the “accrual period”) in which the income, gain or loss accrued; and

  • (c)it would, in the absence of this subsection and subsection (21), be reasonable to consider that a fluctuation at any time in the accrual period in the value of the taxpayer’s tax reporting currency relative to the value of the related Insertion start person’s Insertion end tax reporting currency

    • (i)increased the taxpayer’s loss in respect of the specified transaction,

    • (ii)reduced the taxpayer’s income or gain in respect of the specified transaction, or

    • (iii)caused the taxpayer to have a loss, instead of income or a gain, in respect of the specified transaction.

(4)Subsection (1) applies to taxation years that begin after 2019.

(5)Subsection (2) applies in respect of transfers of property that occur on or after August 9, 2022.

(6)Subsection (3) applies in respect of accrual periods (within the meaning assigned by subsection 261(20) of the Act) that begin on or after August 9, 2022.

78(1)The Act is amended by adding the following after Part XIX:

Start of inserted block
Part XX 
Reporting Rules for Digital Platform Operators
End of inserted block
Definitions
Start of inserted block
282(1)The following definitions apply in this Part.

active seller means a seller that either provides relevant services or sells goods during the reportable period or is paid or credited consideration in connection with relevant activities during the reportable period.‍ (vendeur actif)

consideration means compensation in any form that is paid or credited to a seller in connection with relevant activities, the amount of which is known or reasonably knowable by the platform operator.‍ (rémunération)

entity has the same meaning as in subsection 270(1).  (entité)

excluded platform operator means a platform operator that demonstrates to the satisfaction of the Minister that the platform’s entire business model is such that it does not

  • (a)allow sellers to derive a profit from the consideration; or

  • (b)have reportable sellers.‍ (opérateur de platforme exclu)

excluded seller means a seller

  • (a)that is an entity for which the platform operator facilitated more than 2,000 relevant services for the rental of immovable property in respect of a property listing during the reportable period;

  • (b)that is a governmental entity (as defined in subsection 270(1));

  • (c)that is an entity the stock of which is regularly traded on an established securities market (as defined in subsection 270(1)) or a related entity (as defined in subsection 270(1)) of an entity the stock of which is regularly traded on an established securities market; or

  • (d)for which the platform operator solely facilitated less than 30 relevant activities for the sale of goods and for which the total amount of consideration paid or credited did not exceed $2,800 during the reportable period.‍ (vendeur exclu)

fiat currency means a currency that is used by a country and is designated as legal tender in that country.‍ (monnaie fiduciaire)

financial account identifier means the unique identifying number or reference, available to the platform operator, of the bank account or other payment account to which consideration is paid or credited.‍ (identifiant de compte financier)

goods means any tangible property or, for civil law, any corporeal property.‍ (bien)

government verification service means an electronic process made available by a reportable jurisdiction to a platform operator for the purposes of ascertaining the identity and residence of a seller.‍ (service public de vérification)

immovable property means real or immovable property.‍ (biens immobiliers)

partner jurisdiction means each jurisdiction identified as a partner jurisdiction by the Minister on the Internet website of the Canada Revenue Agency or by any other means that the Minister considers appropriate.‍ (juridiction partenaire)

personal service means a service involving time- or task-based work performed by one or more individuals at the request of a user, unless such work is purely ancillary to the overall transaction, but does not include a service provided by a seller pursuant to an employment relationship with the platform operator or a related entity (as defined in subsection 270(1)) of the platform operator.  (service personnel)

platform means a software, including a website or a part of it and applications, including mobile applications, accessible by users and allowing sellers to be connected to other users for the provision of relevant services or the sale of goods, directly or indirectly, to such users (including the collection and payment of consideration in respect of relevant activities), but does not include, in the provision of relevant services or the sale of goods, software exclusively allowing without any further intervention

  • (a)the processing of payments in relation to relevant activities;

  • (b)listing or advertising in relation to relevant activities; or

  • (c)redirecting or transferring of users to a platform.‍ (plateforme)

platform operator means an entity that contracts with sellers to make available all or part of a platform to such sellers.  (opérateur de plateforme)

primary address means

  • (a)in respect of a seller that is an individual (other than a trust), the address of the seller’s principal place of residence; and

  • (b)in respect of a seller that is an entity, the address of the seller’s registered office.‍ (adresse principale)

property listing includes all immovable property units located at the same street address and offered for rent on a platform by the same seller.  (lot)

relevant activity means

  • (a)a relevant service; or

  • (b)the sale of goods for consideration.‍ (activité visée)

relevant service means, if provided for consideration:

  • (a)the rental of real or immovable property;

  • (b)a personal service;

  • (c)the rental of a means of transport; or

  • (d)a prescribed service.‍ (service visé)

reportable jurisdiction means

  • (a)for a reporting platform operator described in paragraph (a) of the definition reporting platform operator, Canada and any partner jurisdiction; and

  • (b)in any other case, Canada.‍ (juridiction soumise à déclaration)

reportable period means a calendar year during which a platform operator is a reporting platform operator.‍ (période de déclaration)

reportable seller means an active seller, other than an excluded seller, that is determined by the platform operator based on the due diligence procedures set out in sections 283 to 287 to

  • (a)be resident in a reportable jurisdiction;

  • (b)have provided relevant services for the rental of immovable property located in a reportable jurisdiction; or

  • (c)have been paid or credited consideration in connection with relevant services for the rental of immovable property located in a reportable jurisdiction.‍ (vendeur soumis à déclaration)

reporting platform operator means a platform operator, other than an excluded platform operator, if 

  • (a)it is resident in Canada;

  • (b)it is resident, incorporated or managed in a partner jurisdiction, facilitates the provision of relevant activities by sellers resident in Canada or with respect to rental of immovable property located in Canada and elects to be a reporting platform operator; or

  • (c)it is not resident in Canada or a partner jurisdiction and it facilitates the provision of relevant activities by sellers resident in Canada or with respect to rental of immovable property located in Canada.‍ (opérateur de plateforme soumis à déclaration)

seller means a platform user that is registered at any time during the reportable period on the platform for the provision of a relevant service or the sale of goods.  (vendeur)

TIN means 

  • (a)the number used by the Minister to identify an individual or entity, including

    • (i)a social insurance number,

    • (ii)a business number, and

    • (iii)an account number issued to a trust; and

  • (b)in respect of a jurisdiction other than Canada, a taxpayer identification number, including a VAT/GST registration number issued by the jurisdiction of the primary address of the seller, or a functional equivalent in the absence of a taxpayer identification number.‍ (NIF)

    End of inserted block
Interpretation
Start of inserted block
(2)This Part relates to the implementation of the Model Rules set out in the Model Rules for Reporting by Platform Operators with respect to Sellers in the Sharing and Gig Economy approved by the Council of the Organisation for Economic Co-operation and Development and, unless the context otherwise requires, the provisions in this Part are to be interpreted consistently with the Model Rules, as amended from time to time.
End of inserted block
Excluded seller
Start of inserted block
283(1)For the purpose of determining whether a seller is an excluded seller under paragraph (a) or (d) of that definition in subsection 282(1), a reporting platform operator may rely on its available records.
End of inserted block
Excluded seller – entity
Start of inserted block
(2)For the purpose of determining whether a seller that is an entity is an excluded seller under paragraph (b) or (c) of that definition in subsection 282(1), a reporting platform operator may rely on publicly available information or a confirmation from the seller.
End of inserted block
Seller information – individual
Start of inserted block
284(1)The reporting platform operator must collect the following information for each seller that is an individual (other than a trust) and that is not an excluded seller
  • (a)the first and last name of the individual;

  • (b)the primary address of the individual;

  • (c)the TIN issued to the individual, including the jurisdiction of issuance; and

  • (d)the date of birth of the individual.

    End of inserted block
Seller information – entity
Start of inserted block
(2)The reporting platform operator must collect the following information for each seller (other than a seller described in subsection (1)) that is not an excluded seller
  • (a)the legal name of the entity;

  • (b)the primary address of the entity;

  • (c)the TIN issued to the entity, including the jurisdiction of issuance; and

  • (d)the business registration number of the entity.

    End of inserted block
Government verification services
Start of inserted block
(3)Notwithstanding subsections (1) and (2), the reporting platform operator is not required to collect information pursuant to paragraphs (1)‍(b) to (d) or (2)‍(b) to (d) in respect of a seller where the reporting platform operator relies on a government verification service to ascertain the identity and residence of the seller.
End of inserted block
TIN collection
Start of inserted block
(4)Notwithstanding paragraphs (1)‍(c) and (2)‍(c) and (d), the TIN or the business registration number, respectively, are not required to be collected if
  • (a)the jurisdiction of residence of the seller does not issue a TIN or business registration number to the seller; or

  • (b)the jurisdiction of residence of the seller does not require the collection of the TIN issued to such seller.

    End of inserted block
Verification of seller information
Start of inserted block
285(1)The reporting platform operator must determine whether the information collected under subsection 283(2) and sections 284 and 287 is reliable, using all records available to the reporting platform operator, as well as any publicly available electronic interface to ascertain the validity of the TIN.
End of inserted block
Due diligence
Start of inserted block
(2)Notwithstanding subsection (1), for the completion of the due diligence procedures pursuant to subsection 288(2), the reporting platform operator may determine whether the information collected pursuant to subsection 283(2) and sections 284 and 287 is reliable using electronically searchable records available to the reporting platform operator.
End of inserted block
Verifying accuracy
Start of inserted block
(3)For the purpose of paragraph 288(3)‍(b), despite subsections (1) and (2), in instances where the reporting platform operator has reason to know that any of the information items described in section 284 or 287 may be inaccurate by virtue of information provided by the Minister, it must verify such information item using reliable, independent-source documents, data or information.
End of inserted block
Residence
Start of inserted block
286(1)A reporting platform operator must consider a seller resident in the jurisdiction of the seller’s primary address.
End of inserted block
Government verification service
Start of inserted block
(2)Notwithstanding subsection (1), a reporting platform operator must consider a seller resident in each jurisdiction confirmed by a government verification service pursuant to subsection 284(3).
End of inserted block
Rented immovable property
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287Where a seller provides relevant services for the rental of immovable property, the reporting platform operator must collect the address of each property listing.
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Due diligence
Start of inserted block
288(1)A reporting platform operator must complete the due diligence procedures set out in sections 283 to 287 by December 31 of the reportable period.
End of inserted block
Previously registered accounts
Start of inserted block
(2)Despite subsection (1), the due diligence procedures set out in sections 283 to 287 are required to be completed by December 31 of the second reportable period of the reporting platform operator, for sellers that are already registered on the platform
  • (a)as of January 1, 2024; or

  • (b)as of the date on which an entity becomes a reporting platform operator.

    End of inserted block
Previous due diligence
Start of inserted block
(3)Notwithstanding subsection (1), a reporting platform operator may rely on the due diligence procedures conducted in respect of previous reportable periods, provided
  • (a)the primary address of the seller has been either collected and verified or confirmed within the last 36 months; and

  • (b)the reporting platform operator does not have reason to know that the information collected pursuant to sections 283, 284 and 287 is or has become unreliable or incorrect.

    End of inserted block
Active sellers
Start of inserted block
289A reporting platform operator may elect to complete the due diligence procedures under sections 283 to 288 in respect of active sellers only.
End of inserted block
Due diligence by third parties
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290(1)A reporting platform operator may rely on a third-party service provider to fulfil the due diligence obligations under sections 291 and 292, but such obligations remain the responsibility of the reporting platform operator.
End of inserted block
Partner jurisdiction
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(2)When a platform operator fulfils the due diligence obligations for a reporting platform operator with respect to the same platform under subsection (1), such platform operator may carry out the due diligence procedures pursuant to substantially similar rules in its partner jurisdiction.
End of inserted block
Reporting to Minister
Start of inserted block
291(1)A reporting platform operator must report to the Minister the information set out in section 292 with respect to the reportable period no later than January 31 of the year following the calendar year in which the seller is identified as a reportable seller.
End of inserted block
Reporting to seller
Start of inserted block
(2)A reporting platform operator must provide the information set out under section 292 to the reportable seller to which it relates no later than January 31 of the year following the calendar year in which the seller is identified as a reportable seller.
End of inserted block
Reporting not required
Start of inserted block
(3)Notwithstanding subsections (1) and (2), the information in relation to a reportable seller is neither required to be reported to the Minister nor to be made available to the reportable seller in circumstances where the reporting platform operator has obtained adequate assurances that another platform operator has or will fulfil the reporting obligations under this section and section 292
  • (a)with respect to the reportable seller pursuant to the rules in Canada; or

  • (b)with respect to the reportable seller, other than a reportable seller resident in Canada, under substantially similar rules in a partner jurisdiction.

    End of inserted block
Reporting
Start of inserted block
(4)A reporting platform operator required to report information under this section shall report the information in prescribed form.
End of inserted block
Electronic filing
Start of inserted block
(5)Information required to be reported under this section shall be filed by way of electronic filing.
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Currency
Start of inserted block
(6)The information with respect to the consideration paid or credited in a fiat currency must be reported in the currency in which it was paid or credited. In case the consideration was paid or credited in a form other than fiat currency, it should be reported in the local currency of Canada, converted or valued in a manner that is determined consistently by the reporting platform operator.
End of inserted block
Reporting in respect of quarter
Start of inserted block
(7)The information with respect to the consideration and other amounts must be reported in respect of the quarter in which the consideration was paid or credited.
End of inserted block
Information reported
Start of inserted block
292Each reporting platform operator must report the following information:
  • (a)the name, registered office address and TIN of the reporting platform operator, as well as any business names of any platforms in respect of which the reporting platform operator is reporting;

  • (b)with respect to each reportable seller that provided relevant services (other than immovable property rental), rented out a means of transportation or sold goods,

    • (i)the items required to be collected pursuant to section 284,

    • (ii)any other TIN, including the jurisdiction of issuance, available to the reporting platform operator,

    • (iii)any financial account identifiers, insofar as they are available to the reporting platform operator and the jurisdiction of the reportable seller’s residence is specified by the Minister,

    • (iv)if different from the name of the reportable seller, the name of the holder of the financial account to which the consideration is paid or credited, to the extent available to the reporting platform operator, as well as any other identifying information available to the reporting platform operator with respect to that account holder,

    • (v)each jurisdiction in which the reportable seller is resident on the basis of the procedures set out in section 286,

    • (vi)the total consideration paid or credited during each quarter of the reportable period and the number of such relevant activities in respect of which it was paid or credited, and

    • (vii)any fees, commissions or taxes withheld or charged by the reporting platform operator during each quarter of the reportable period; and

  • (c)with respect to each reportable seller that provided relevant services for the rental of immovable property,

    • (i)the items required to be collected pursuant to section 284,

    • (ii)any other TIN, including the jurisdiction of issuance, available to the reporting platform operator,

    • (iii)any financial account identifiers, insofar as they are available to the reporting platform operator and either the jurisdiction of residence of the reportable seller or the jurisdiction in which the immovable property is located is specified by the Minister,

    • (iv)if different from the name of the reportable seller, the name of the holder of the financial account to which the consideration is paid or credited, to the extent available to the reporting platform operator, as well as any other identifying information available to the reporting platform operator with respect to the account holder,

    • (v)each jurisdiction in which the reportable seller is resident on the basis of the procedures set out in section 286,

    • (vi)the address of each property listing, determined on the basis of the procedures set out in section 287, and, if available, the land registration number,

    • (vii)the total consideration paid or credited during each quarter of the reportable period and the number of such relevant services provided with respect to each property listing in respect of which it was paid or credited,

    • (viii)any fees, commissions or taxes withheld or charged by the reporting platform operator during each quarter of the reportable period, and

    • (ix)if available, the number of days each property listing was rented during the reportable period and the type of each property listing.

      End of inserted block
Production of TIN
Start of inserted block
293(1)Every reportable seller shall provide their TIN at the request of a reporting platform operator that is required under this Part to make an information return requiring the TIN.
End of inserted block
Confidentiality of TIN
Start of inserted block
(2)A reporting platform operator required to make an information return referred to in subsection (1) shall not knowingly use, communicate or allow to be communicated, otherwise than as required or authorized under this Act or a regulation, the TIN without the written consent of the reportable seller.
End of inserted block
Penalty for failure to provide TIN
Start of inserted block
(3)Every reportable seller who fails to provide on request their TIN to a reporting platform operator that is required under this Part to make an information return requiring the TIN is liable to a penalty of $500 for each such failure, unless
  • (a)an application for the assignment of the TIN is made to the relevant reportable jurisdiction not later than 90 days after the request was made and the TIN is provided to the reporting platform operator that requested it within 15 days after the reportable seller received it; or

  • (b)the reportable seller is not eligible to obtain a TIN from the relevant reportable jurisdiction (including because the relevant reportable jurisdiction does not issue TINs).

    End of inserted block
Assessment
Start of inserted block
(4)The Minister may at any time assess any amount payable under subsection (3) by a reportable seller and, if the Minister sends a notice of assessment to the reportable seller, sections 150 to 163, subsections 164(1) and (1.‍4) to (7), sections 165 to 167 and Division J of Part I apply with such modifications as the circumstances require.
End of inserted block
Record keeping
Start of inserted block
294(1)Every reporting platform operator shall keep, at its place of business or at such other place as may be designated by the Minister, records that it obtains or creates for the purpose of complying with this Part, including records of documentary evidence.
End of inserted block
Form of records
Start of inserted block
(2)Every reporting platform operator 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).
End of inserted block
Retention of records
Start of inserted block
(3)Every reporting platform operator 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 the end of the last calendar year in respect of which the record is relevant.
End of inserted block
Anti-avoidance
Start of inserted block
295If 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.
End of inserted block

(2)Subsection (1) comes into force on January 1, 2024.

79(1)The schedule to the Act is amended by replacing “Ford Credit Canada Limited” with “Ford Credit Canada Company/Compagnie Crédit Ford du Canada”.

(2)Subsection (1) is deemed to have come into force on January 9, 2017.

R.‍S.‍, c. E-15

Excise Tax Act

80Subsection 106.‍1(3.‍1) of the Excise Tax Act is replaced by the following:

Date electronic notice sent
(3.‍1)For the purposes of this Act, if a notice or other communication in respect of a person, Insertion start other than a notice or other communication that refers to the business number of a person Insertion end , is made available in electronic format such that it can be read or perceived by a person or a computer system or other similar device, the notice or other communication is Insertion start presumed Insertion end to be sent to the person and received by the person on the date that an electronic message is sent, to the electronic address most recently provided before that date by the person to the Minister for the purposes of this subsection, informing the person that a notice or other communication requiring the person’s immediate attention is available in the person’s secure electronic account. A notice or other communication is considered to be made available if it is posted by the Minister in the person’s secure electronic account and the person has authorized that notices or other communications may be made available in this manner and has not before that date revoked that authorization in a manner specified by the Minister.
Date electronic notice sent — business account
Start of inserted block
(3.‍2)For the purposes of this Act, a notice or other communication in respect of a person that is made available in electronic format such that it can be read or perceived by a person or computer system or other similar device and that refers to the business number of a person is presumed to be sent to the person and received by the person on the date that it is posted by the Minister in the secure electronic account in respect of the business number of the person, unless the person has requested, at least 30 days before that date, in a manner specified by the Minister, that such notices or other communications be sent by mail.
End of inserted block

81(1)Section 278 of the Act is amended by adding the following before subsection (1):

Definition of electronic payment
Start of inserted block
278(0.‍1)In this section, electronic payment means any payment or remittance to the Receiver General that is made through electronic services offered by a person described in any of paragraphs (3)‍(a) to (d) or by any electronic means specified by the Minister.
End of inserted block
(2)The portion of subsection 278(3) of the Act before paragraph (a) is replaced by the following:
Electronic payment
(3)Every person Insertion start that Insertion end is required under this Part to pay or remit an amount to the Receiver General shall, Insertion start if Insertion end the amount is $ Insertion start 10,000 Insertion end or more, make the payment or remittance Insertion start by way of electronic payment, unless the person cannot reasonably pay or remit the amount in that manner Insertion end , to the account of the Receiver General at Insertion start or through Insertion end

(3)Subsections (1) and (2) apply in respect of payments and remittances made after 2023.

82(1)The Act is amended by adding the following after section 280.‍11:
Penalty — electronic payment
Start of inserted block
280.‍12Every person that fails to comply with subsection 278(3) is liable to a penalty equal to $100 for each such failure.
End of inserted block

(2)Subsection (1) applies in respect of payments and remittances made after 2023.

83Paragraph 295(5)‍(d) of the Act is amended by adding the following after subparagraph (xi):

  • Start of inserted block

    (xi.‍1)to an official of

    • (A)the Department of Employment and Social Development or the Department of Health, solely for the purpose of the administration or enforcement of the Canadian Dental Care Plan established under the authority of the Department of Health Act in respect of dental service for individuals, or

    • (B)the Department of Health solely for the purpose of the formulation or evaluation of policy for that plan;

      End of inserted block

84Subsection 335(10.‍1) of the Act is replaced by the following:

Date electronic notice sent
(10.‍1)For the purposes of this Part, if a notice or other communication in respect of a person, Insertion start other than a notice or other communication that refers to the business number of a person Insertion end , is made available in electronic format such that it can be read or perceived by a person or a computer system or other similar device, the notice or other communication is presumed to be sent to the person and received by the person on the date that an electronic message is sent, to the electronic address most recently provided before that date by the person to the Minister for the purposes of this subsection, informing the person that a notice or other communication requiring the person’s immediate attention is available in the person’s secure electronic account. A notice or other communication is considered to be made available if it is posted by the Minister in the person’s secure electronic account and the person has authorized that notices or other communications may be made available in this manner and has not before that date revoked that authorization in a manner specified by the Minister.
Date electronic notice sent — business account
Start of inserted block
(10.‍2)For the purposes of this Part, a notice or other communication in respect of a person that is made available in electronic format such that it can be read or perceived by a person or computer system or other similar device and that refers to the business number of a person is presumed to be sent to the person and received by the person on the date that it is posted by the Minister in the secure electronic account in respect of the business number of the person, unless the person has requested, at least 30 days before that date, in a manner specified by the Minister, that such notices or other communications be sent by mail.
End of inserted block

R.‍S.‍, c. T-3

Tax Rebate Discounting Act

85Paragraphs 4(2)‍(a) and (b) of the Tax Rebate Discounting Act are replaced by the following:

  • (a)including with the return of income, other than a return of income deemed by subsection 150.‍1(3) of the Income Tax Act to have been filed for the purposes of section 150 of that Act, a true copy of the statement referred to in subparagraph (1)‍(b)‍(i) as provided to the client, and

  • (b)providing to such person and within such period of time as the Minister may specify a true copy of the statement referred to in subparagraph (1)‍(b)‍(i) as provided to the client,

2002, c. 9, s. 5

Air Travellers Security Charge Act

86(1)Section 20 of the Air Travellers Security Charge Act is replaced by the following:

Definition of electronic payment
Start of inserted block
20(1)In this section, electronic payment means any payment to the Receiver General that is made through electronic services offered by a person described in any of paragraphs (2)‍(a) to (d) or by any electronic means specified by the Minister.
End of inserted block
Electronic payment
Insertion start (2) Insertion end Every person Insertion start that Insertion end is required under this Act to pay an amount to the Receiver General shall, if the amount is $ Insertion start 10,000 Insertion end or more, make the payment Insertion start by way of electronic payment, unless the person cannot reasonably pay the amount in that manner Insertion end , to the account of the Receiver General at Insertion start or through Insertion end
  • (a)a bank;

  • (b)a credit union;

  • (c)a corporation Insertion start that is Insertion end authorized under the laws of Canada or a province to carry on the business of offering its services as a trustee to the public; or

  • (d)a corporation Insertion start that is Insertion end authorized under the laws of Canada or a province to accept deposits from the public and that carries on the business of lending money on the security of real property or immovables or investing in mortgages on real property or hypothecs on immovables.

(2)Subsection (1) applies in respect of payments made after 2023.

87(1)The Act is amended by adding the following after section 53:
Penalty — electronic payment
Start of inserted block
54Every person that fails to comply with subsection 20(2) is liable to a penalty equal to $100 for each such failure.
End of inserted block

(2)Subsection (1) applies in respect of payments made after 2023.

88Subsection 83(9.‍1) of the Act is replaced by the following:

Date electronic notice sent
(9.‍1)For the purposes of this Act, if a notice or other communication in respect of a person, Insertion start other than a notice or other communication that refers to the business number of a person Insertion end , is made available in electronic format such that it can be read or perceived by a person or a computer system or other similar device, the notice or other communication is Insertion start presumed Insertion end to be sent to the person and received by the person on the date that an electronic message is sent, to the electronic address most recently provided before that date by the person to the Minister for the purposes of this subsection, informing the person that a notice or other communication requiring the person’s immediate attention is available in the person’s secure electronic account. A notice or other communication is considered to be made available if it is posted by the Minister in the person’s secure electronic account and the person has authorized that notices or other communications may be made available in this manner and has not before that date revoked that authorization in a manner specified by the Minister.
Date electronic notice sent – business account
Start of inserted block
(9.‍2)For the purposes of this Act, a notice or other communication in respect of a person that is made available in electronic format such that it can be read or perceived by a person or computer system or other similar device and that refers to the business number of a person is presumed to be sent to the person and received by the person on the date that it is posted by the Minister in the secure electronic account in respect of the business number of the person, unless the person has requested, at least 30 days before that date, in a manner specified by the Minister, that such notices or other communications be sent by mail.
End of inserted block

2002, c. 22

Excise Act, 2001

89(1)Section 163 of the Excise Act, 2001 is replaced by the following:

Definition of electronic payment
Start of inserted block
163(1)In this section, electronic payment means any payment to the Receiver General that is made through electronic services offered by a person described in any of paragraphs (2)‍(a) to (e) or by any electronic means specified by the Minister.
End of inserted block
Electronic payment
Insertion start (2) Insertion end Every person Insertion start that Insertion end is required under this Act to pay any duty, interest or other amount to the Receiver General shall, if the amount is $ Insertion start 10,000 Insertion end or more, make the payment Insertion start by way of electronic payment, unless the person cannot reasonably pay the amount in that manner Insertion end , to the account of the Receiver General at Insertion start or through Insertion end
  • (a)a bank;

  • (b)an authorized foreign bank, as defined in section 2 of the Bank Act, that is not subject to the restrictions and requirements referred to in subsection 524(2) of that Act;

  • (c)a credit union;

  • (d)a corporation Insertion start that is Insertion end authorized under the laws of Canada or a province to carry on the business of offering its services as a trustee to the public; or

  • (e)a corporation Insertion start that is Insertion end authorized under the laws of Canada or a province to accept deposits from the public and that carries on the business of lending money on the security of real property or immovables or investing in mortgages on real property or hypothecs on immovables.

(2)Subsection (1) applies in respect of payments made after 2023.

90Paragraph 211(6)‍(e) of the Act is amended by adding the following after subparagraph (xii):

  • Start of inserted block

    (xii.‍1)to an official of

    • (A)the Department of Employment and Social Development or the Department of Health, solely for the purpose of the administration or enforcement of the Canadian Dental Care Plan established under the authority of the Department of Health Act in respect of dental service for individuals, or

    • (B)the Department of Health solely for the purpose of the formulation or evaluation of policy for that plan;

      End of inserted block
91(1)The Act is amended by adding the following after section 251.‍1:
Penalty — electronic payment
Start of inserted block
251.‍11Every person that fails to comply with subsection 163(2) is liable to a penalty equal to $100 for each such failure.
End of inserted block

(2)Subsection (1) applies in respect of payments made after 2023.

92Subsection 301(9.‍1) of the Act is replaced by the following:

Date electronic notice sent
(9.‍1)For the purposes of this Act, if a notice or other communication in respect of a person, Insertion start other than a notice or other communication that refers to the business number of a person Insertion end , is made available in electronic format such that it can be read or perceived by a person or a computer system or other similar device, the notice or other communication is Insertion start presumed Insertion end to be sent to the person and received by the person on the date that an electronic message is sent, to the electronic address most recently provided before that date by the person to the Minister for the purposes of this subsection, informing the person that a notice or other communication requiring the person’s immediate attention is available in the person’s secure electronic account. A notice or other communication is considered to be made available if it is posted by the Minister in the person’s secure electronic account and the person has authorized that notices or other communications may be made available in this manner and has not before that date revoked that authorization in a manner specified by the Minister.
Date electronic notice sent — business account
Start of inserted block
(9.‍2)For the purposes of this Act, a notice or other communication in respect of a person that is made available in electronic format such that it can be read or perceived by a person or computer system or other similar device and that refers to the business number of a person is presumed to be sent to the person and received by the person on the date that it is posted by the Minister in the secure electronic account in respect of the business number of the person, unless the person has requested, at least 30 days before that date, in a manner specified by the Minister, that such notices or other communications be sent by mail.
End of inserted block

2018, c. 12, s. 186

Greenhouse Gas Pollution Pricing Act

93(1)Section 86 of the Greenhouse Gas Pollution Pricing Act is replaced by the following:

Definition of electronic payment
Start of inserted block
86(1)In this section, electronic payment means any payment to the Receiver General that is made through electronic services offered by a person described in any of paragraphs (2)‍(a) to (d) or by any electronic means specified by the Minister.
End of inserted block
Electronic payment
Insertion start (2) Insertion end Every person that is required under this Part to pay an amount to the Receiver General must, if the amount is $ Insertion start 10,000 Insertion end or more, make the payment Insertion start by way of electronic payment, unless the person cannot reasonably pay the amount in that manner Insertion end , to the account of the Receiver General at Insertion start or through Insertion end
  • (a)a bank;

  • (b)a credit union;

  • (c)a corporation Insertion start that is Insertion end authorized under the laws of Canada or a province to carry on the business of offering its services as a trustee to the public; or

  • (d)a corporation that is authorized under the laws of Canada or a province to accept deposits from the public and that carries on the business of lending money on the security of real property or immovables or investing in indebtedness on the security of mortgages on real property or hypothecs on immovables.

(2)Subsection (1) applies in respect of payments made after 2023.

94(1)The Act is amended by adding the following after section 123:
Penalty — electronic payments
Start of inserted block
123.‍1Every person that fails to comply with subsection 86(2) is liable to a penalty equal to $100 for each such failure.
End of inserted block

(2)Subsection (1) applies in respect of payments made after 2023.

95Subsection 164(12) of the Act is replaced by the following:

Date electronic notice sent
(12)For the purposes of this Part, if a notice or other communication in respect of a person, Insertion start other than a notice or other communication that refers to the business number of a person Insertion end , is made available in electronic format such that it can be read or perceived by a person or a computer system or other similar device, the notice or other communication is presumed to be sent to the person and received by the person on the date that an electronic message is sent, to the electronic address most recently provided before that date by the person to the Minister for the purposes of this subsection, informing the person that a notice or other communication requiring the person’s immediate attention is available in the person’s secure electronic account. A notice or other communication is considered to be made available if it is posted by the Minister in the person’s secure electronic account and the person has authorized that notices or other communications may be made available in this manner and has not before that date revoked that authorization in a manner specified by the Minister.
Date electronic notice sent – business account
Start of inserted block
(12.‍1)For the purposes of this Part, a notice or other communication in respect of a person that is made available in electronic format such that it can be read or perceived by a person or computer system or other similar device and that refers to the business number of a person is presumed to be sent to the person and received by the person on the date that it is posted by the Minister in the secure electronic account in respect of the business number of the person, unless the person has requested, at least 30 days before that date, in a manner specified by the Minister, that such notices or other communications be sent by mail.
End of inserted block

C.‍R.‍C.‍, c. 945

Income Tax Regulations

96(1)Subsection 202(6) of the Income Tax Regulations is replaced by the following:

(6)A non-resident person, Insertion start or an authorized foreign bank, that Insertion end is deemed under subsection 212(13.‍2) Insertion start or paragraph 212(13.‍3)‍(a) Insertion end of the Act to be a person resident in Canada for the purposes of Part XIII of the Act, Insertion start is Insertion end deemed, in the same circumstances, to be a person resident in Canada for the purposes of subsections (1) and (2).

(2)Subsection (1) applies to amounts paid or credited after 2022.

97(1)Subsection 205(3) of the Regulations is amended by adding the following in alphabetical order:

Part XX Information Return – Digital Platform Operators

(2)Subsection (1) comes into force on January 1, 2024.

98(1)The portion of subsection 205.‍1(1) of the Regulations, before the list of types of prescribed information returns, is replaced by the following:

205.‍1(1)For the purpose of subsection 162(7.‍02) of the Act, the following types of information returns are prescribed and must be filed Insertion start electronically Insertion end if more than Insertion start five Insertion end information returns of that type are required to be filed for a calendar year:

(2)The portion of subsection 205.‍1(2) of the Regulations before paragraph (a) is replaced by the following:

(2)For purposes of subsection 150.‍1(2.‍1) of the Act, a prescribed corporation is any corporation except

(3)Subsection (1) applies in respect of information returns filed after 2023.

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

99(1)Subsection 209(1) of the Regulations is replaced by the following:

209(1)A person who is required by section 200, 201, 202, 203, 204, 212, 214 ( Insertion start other than subsection 214(1.‍1) Insertion end ), 215 ( Insertion start other than subsection 215(2.‍1) Insertion end ), 217 or 218, subsection 219(2) or 223(2) or section 228, 229, 230, 232, 233 or 234 to make an information return shall forward to each taxpayer to whom the return relates two copies of the portion of the return that relates to that taxpayer.

(2)The portion of subsection 209(5) of the Regulations before paragraph (a) is replaced by the following:

(5)A person may provide a Statement of Remuneration Paid (T4) information return, a Tuition and Enrolment Certificate, Insertion start a Statement of Pension, Retirement, Annuity, and Other Income (T4A) information return Insertion end or Insertion start a Statement of Investment Income (T5) information return Insertion end , as required under subsection (1), as a single document in an electronic format (instead of the two copies required under subsection (1)) to the taxpayer to whom the return relates, on or before the date on which the return is to be filed with the Minister, unless

(3)The portion of subsection 209(5) of the Regulations before paragraph (a) is replaced by the following:

(5)A person may provide a Statement of Remuneration Paid (T4) information return, a Tuition and Enrolment Certificate, Insertion start a FHSA information return Insertion end , a Statement of Pension, Retirement, Annuity, and Other Income (T4A) information return or a Statement of Investment Income (T5) information return, as required under subsection (1), as a single document in an electronic format (instead of the two copies required under subsection (1)) to the taxpayer to whom the return relates, on or before the date on which the return is to be filed with the Minister, unless

(4)Subsection (1) applies to the 2023 and subsequent taxation years.

(5)Subsection (2) applies in respect of information returns filed after 2021.

(6)Subsection (3) is deemed to have come into force on April 1, 2023.

100(1)Section 214 of the Regulations is amended by adding the following after subsection (1):

Start of inserted block
(1.‍1)The issuer of a registered retirement savings plan shall make an information return in prescribed form for each calendar year containing the total fair market value of all property held by the plan at the end of the year.
End of inserted block

(2)Subsection (1) applies to the 2023 and subsequent taxation years.

101(1)Section 215 of the Regulations is amended by adding the following after subsection (2):

Start of inserted block
(2.‍1)Every carrier of a registered retirement income fund shall make an information return in prescribed form for each calendar year containing the total fair market value of all property held by the fund at the end of the year.
End of inserted block

(2)Subsection (1) applies to the 2023 and subsequent taxation years.

102(1)Paragraph (a) of the definition Canadian equity property in subsection 2400(1) of the Regulations is replaced by the following:

  • (a)a share of the capital stock of, or an income bond or income debenture issued by, a person (other than a corporation affiliated with the taxpayer) resident in Canada or a Canadian partnership; or

(2)Paragraph (a) of the definition equity property in subsection 2400(1) of the Regulations is replaced by the following:

  • (a)a share of the capital stock of, or an income bond or income debenture, issued by, another person (other than a corporation affiliated with the taxpayer) or partnership; or

103(1)Subsection 3900(2) of the Regulations is replaced by the following:

(2)For the purpose of paragraph 20(1)‍(v) of the Act, the amount allowed Insertion start for a taxation year Insertion end in respect of taxes on income from mining operations of a taxpayer is the total of all amounts each of which is
  • (a)an eligible tax that is paid or payable by the taxpayer

    • Insertion start (i) Insertion end on the income of the taxpayer for the taxation year from mining operations, or

    • Insertion start (ii) Insertion end on a non-Crown royalty included in computing the income of the taxpayer for the taxation year;

  • Start of inserted block

    (b)an eligible tax that is paid by the taxpayer in the taxation year on either the income of the taxpayer for a previous taxation year from mining operations or a non-Crown royalty included in computing the income of the taxpayer for a previous taxation year, if

    • (i)the amount was deductible in computing the income of the taxpayer for the previous taxation year,

    • (ii)the amount has not been deducted in computing the income of the taxpayer for a taxation year that is prior to the taxation year, and

    • (iii)an assessment of the taxpayer to take into account a deduction in respect of the eligible tax under the Act for the previous taxation year would be precluded because of subsections 152(4) to (5) of the Act; or

  • (c)interest in respect of eligible tax referred to in paragraph (a) or (b) that is paid in the taxation year by the taxpayer to the province imposing the eligible tax.

    End of inserted block

(2)Subsection (1) applies to taxation years that end after 2007.

104(1)Subsection 4802(1) of the Regulations is amended by striking out “and” at the end of paragraph (f) and by adding the following after that paragraph:

  • Start of inserted block

    (f.‍1)the Pension Benefits Guarantee Fund under the Pension Benefits Act, R.‍S.‍O. 1990, c. P.‍8 and any corporation established solely for investing the assets of the Pension Benefits Guarantee Fund; and

    End of inserted block

(2)Section 4802 of the Regulations is amended by adding the following after subsection (1.‍1):

Start of inserted block
(1.‍2)For the purposes of paragraph 8502(i.‍2), if an amount is borrowed (other than an amount described in paragraph (1.‍1)‍(c)) at a particular time by a trust described in subsection (1.‍1) in relation to defined benefit provisions of one or more registered pension plans that are beneficiaries of the trust, each such defined benefit provision is deemed to have borrowed at the particular time an amount that is equal to the following amount:
End of inserted block
  • Start of inserted block

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

    A × (B ÷ C)
    where

    A
    is the amount borrowed by the trust at the particular time,

    B
    is the fair market value at the particular time of the interest of the defined benefit provision in

    (i)if the borrowing relates to a particular class of units of the trust, that class of units, and

    (ii)in any other case, the income and capital of the trust, and

    C
    is the fair market value at the particular time of all interests of defined benefit provisions in

    (i)if the borrowing relates to a particular class of units of the trust, that class of units, and

    (ii)in any other case, the income and capital of the trust; and

  • (b)the portion of the amount borrowed by the trust at the particular time that is allocated to the defined benefit provision under an agreement entered into between the trust and the defined benefit provision, provided that the agreement allocates to the beneficiaries the total amount borrowed by the trust.

(1.‍3)If an amount borrowed by a trust is deemed to have been borrowed by a defined benefit provision under subsection (1.‍2), the amount is deemed not to have been borrowed by the trust for the purposes of paragraph (1.‍1)‍(c).
End of inserted block

(3)Subsection (1) applies to 2022 and subsequent taxation years.

(4)Subsection (2) is deemed to have come into force on April 7, 2022.

105(1)The portion of paragraph 8301(4)‍(a) of the Regulations before subparagraph (i) is replaced by the following:

  • (a)a contribution (other than an excluded contribution, a contribution described in paragraph 8308(6)‍(e) or (g) Insertion start or a contribution made under subsection 147.‍1(20) of the Act Insertion end ) made under the provision in the year by

(2)Subsection (1) is deemed to have come into force on January 1, 2021.

106(1)Subsection 8304.‍1(1) of the Regulations is replaced by the following:

8304.‍1(1)For the purpose of subsection 248(1) of the Act, an individual’s total pension adjustment reversal for a calendar year Insertion start is Insertion end the total of all amounts each of which is
  • Insertion start (a) Insertion end the pension adjustment reversal (in this Part and Part LXXXIV referred to as “PAR”) determined in connection with the individual’s termination in the year from a deferred profit sharing plan or from a benefit provision of a registered pension plan; Insertion start or Insertion end

  • Start of inserted block

    (b)the pension adjustment correction determined in respect of the individual for the year under subsection (16).

    End of inserted block

(2)Section 8304.‍1 of the Regulations is amended by adding the following after subsection (15):

Start of inserted block
Pension Adjustment Correction

(16)If a distribution described in subparagraph 8502(d)‍(iii) or subsection 147.‍1(19) of the Act is made in a calendar year in respect of an individual under a money purchase provision, the individual’s pension adjustment correction for the year is the total of all amounts each of which is an amount, in respect of one or more of the 10 years immediately preceding the calendar year (each such year referred to in this subsection as a “retroactive year”), determined by the formula
A − B − C
where

A
is the total of all amounts each of which was included in determining the individual’s pension credit with respect to an employer for the retroactive year under the provision;

B
is the total amount that ought to have been contributed to the provision under the terms of the plan as registered with respect to the individual for the retroactive year; and

C
is the amount, if any, by which the total of all amounts each of which is the individual’s pension adjustment for the retroactive year in respect of a participating employer exceeds the lesser of the money purchase limit for the retroactive year and 18% of the individual’s compensation (as defined in subsection 147.‍1(1) of the Act) from participating employers for the retroactive year.

End of inserted block

(3)Subsections (1) and (2) are deemed to have come into force on January 1, 2021.

107(1)Section 8308 of the Regulations is amended by adding the following after subsection (5.‍3):

Start of inserted block
Conditions – Permitted Corrective Contribution

(5.‍4)If the individual makes a written commitment to the administrator of the plan or to an employer who participates in the plan to make a permitted corrective contribution in accordance with subsection 147.‍1(20) of the Act in installments, amounts payable by the individual or the employer in respect of the contribution are deemed for the purposes of subsection 8402(4) and the definition net past service pension adjustment in subsection 146(1) of the Act to have been made at the time when the written commitment was made.
End of inserted block

(2)Subsection (1) is deemed to have come into force on January 1, 2021.

108(1)Section 8402 of the Regulations is amended by adding the following after subsection (3):

Start of inserted block
(4)The administrator of a registered pension plan shall file with the Minister an information return in prescribed form within 120 days after a contribution is made to the plan in respect of an individual under subsection 147.‍1(20) of the Act.
End of inserted block

(2)Subsection (1) is deemed to have come into force on January 1, 2021. However, in its application to a contribution made before this Act receives royal assent, the administrator of the registered pension plan shall not be required to file the prescribed information return prior to the day that is 60 days after the day on which this Act receives royal assent.

109(1)Section 8402.‍01 of the Regulations is amended by adding the following after subsection (4):

Start of inserted block
Pension Adjustment Correction – Employer Reporting

(4.‍1)If a pension adjustment correction under subsection 8304.‍1(16) is determined for an individual in connection with a distribution from a registered pension plan (other than a pension adjustment correction that is nil), the administrator of the plan shall file with the Minister an information return in prescribed form reporting the pension adjustment correction
  • (a)if the distribution occurs in the first, second or third quarter of a calendar year, on or before the day that is 60 days after the last day of the quarter in which the distribution occurs; and

  • (b)if the distribution occurs in the fourth quarter of a calendar year, before February of the following calendar year.

    End of inserted block

(2)Subsection (1) is deemed to have come into force on January 1, 2021. However, in its application to a distribution that is made before this Act receives royal assent, the administrator of the registered pension plan is not required to file the prescribed information return prior to the day that is 60 days after the day on which this Act receives royal assent.

110(1)Subparagraph 8502(d)‍(v) of the Regulations is replaced by the following:

  • (v)a payment of interest (computed at a rate not exceeding a reasonable rate) in respect of contributions that are returned as described in subparagraph Insertion start (iii) or Insertion end (iv),

(2)The portion of paragraph 8502(i) of the Regulations before subparagraph (i) is replaced by the following:

  • (i) Insertion start subject to paragraph (i.‍2) Insertion end , a trustee or other person who holds property in connection with the plan does not borrow money for the purposes of the plan, except where

(3)Section 8502 of the Regulations is amended by adding the following after paragraph (i.‍1):

Start of inserted block
Borrowing – Defined Benefit Provision

  • (i.‍2)in the case of a defined benefit provision of the plan (other than an individual pension plan), a trustee or other person who holds property in connection with the provision does not borrow money for the purposes of the provision, except in the circumstances described in paragraph (i) or if, at the time an amount is borrowed

    • (i)the difference between A and B in subparagraph (ii) does not exceed 125% of the actuarial liabilities (determined on the effective date of the plan’s most recent actuarial report) in respect of the provision, and

    • (ii)the total of the borrowed amount and the amount of any other outstanding borrowings in respect of the provision (other than an amount described in paragraph (i)) does not exceed the amount determined by the formula

      0.‍20 × (A − B)
      where

      A
      is the value of the plan assets in respect of the provision on the first day of the fiscal period of the plan in which the amount is borrowed, and

      B
      is the amount of outstanding borrowings in respect of the provision, determined on the first day of the fiscal period in which the amount is borrowed;

      End of inserted block

(4)Subsection (1) is deemed to have come into force on January 1, 2021.

(5)Subsections (2) and (3) are deemed to have come into force on April 7, 2022.

111(1)Clause 8506(1)‍(e.‍2)‍(iii)‍(A) of the Regulations is replaced by the following:

  • (A)a benefit described in any of paragraphs (b) to (e) and (i),

(2)Subsection (1) is deemed to have come into force on January 1, 2020.

SOR/2010-150

Electronic Filing and Provision of Information (GST/HST) Regulations

112(1)Paragraph 2(a) of the Electronic Filing and Provision of Information (GST/HST) Regulations is replaced by the following:
  • (a)the person is not a charity;

(2)Subsection (1) applies in respect of reporting periods that begin after 2023.

Coordinating Amendments

Bill C-46

113(1)Subsections (2) and (3) apply if Bill C-46, introduced in the 1st session of the 44th Parliament and entitled the Cost of Living Relief Act, No. 3 (in this section referred to as the “other Act”), receives royal assent.
(2)If subsections 49(1) and (2) of this Act come into force before subsections 4(1) and (2) of the other Act, then those subsections 4(1) and (2) are deemed never to have come into force and are repealed.
(3)If subsections 4(1) and (2) of the other Act come into force on the same day as subsections 49(1) and (2) of this Act, then those subsections 4(1) and (2) are deemed to have come into force before those subsections 49(1) and (2).

PART 2
GST/HST Measures

R.‍S.‍, c. E-15

Excise Tax Act

114(1)The definition commercial service in subsection 123(1) of the Excise Tax Act is amended by striking out “and” at the end of paragraph (a), by adding “and” at the end of paragraph (b) and by adding the following after paragraph (b):

  • Start of inserted block

    (c)a service that is acquired for consumption, use or supply in the course of, or in connection with, the performance of a mining activity (as defined in subsection 188.‍2(1)) in Canada; (service commercial)

    End of inserted block

(2)The definition financial service in subsection 123(1) of the Act is amended by adding the following after paragraph (r.‍5):

  • Start of inserted block

    (r.‍6)a service (other than a prescribed service) that is supplied by a payment card network operator in respect of a payment card network (as those terms are defined in section 3 of the Payment Card Networks Act) where the supply includes the provision of

    • (i)a service in respect of the authorization of a transaction in respect of money, an account, a credit card voucher, a charge card voucher or a financial instrument,

    • (ii)a clearing or settlement service in respect of money, an account, a credit card voucher, a charge card voucher or a financial instrument, or

    • (iii)a service rendered in conjunction with a service referred to in subparagraph (i) or (ii),

      End of inserted block

(3)Paragraph (b) of the definition pension entity in subsection 123(1) of the Act is replaced by the following:

  • (b)a corporation referred to in paragraph (b) of Insertion start the Insertion end definition Insertion start pension plan Insertion end , or

(4)Subsection (1) is deemed to have come into force on February 5, 2022.

(5)Subsection (2) applies to a service rendered under an agreement for a supply if

  • (a)any consideration for the supply becomes due after March 28, 2023 or is paid after that day without having become due; or

  • (b)all of the consideration for the supply became due or was paid on or before March 28, 2023, except that, for the purposes of Part IX of the Act, other than Division IV of that Part, subsection (2) does not apply in respect of the service if

    • (i)the supplier did not, on or before March 28, 2023, charge, collect or remit any amount as or on account of tax under Part IX of the Act in respect of the supply, and

    • (ii)the supplier did not, on or before March 28, 2023, charge, collect or remit any amount as or on account of tax under Part IX of the Act in respect of any other supply that is made under the agreement and that includes the provision of a service referred to in paragraph (r.‍6) of the definition financial service in subsection 123(1) of the Act, as amended by subsection (2).

(6)Despite section 298 of the Act, the Minister of National Revenue may assess, reassess or make an additional assessment of any amount in respect of paragraph (r.‍6) of the definition financial service in subsection 123(1) of the Act, as amended by subsection (1), at any time on or before the later of the day that is one year after the day on which the legislation enacting subsection (1) receives royal assent and the last day of the period otherwise allowed under that section for making the assessment, reassessment or additional assessment.

115(1)Section 172.‍1 of the Act is amended by adding the following after subsection (8):
Later addition to net tax of employer
Start of inserted block
(8.‍01)If, in making an assessment of the net tax for a reporting period of a person, the Minister determines that the tax in respect of a supply of all or part of a specified resource deemed to have been made by the person under paragraph (5)‍(a) or (5.‍1)‍(a) or in respect of a supply of an employer resource deemed to have been made by the person under any of paragraphs (6)‍(a), (6.‍1)‍(a), (7)‍(a) and (7.‍1)‍(a) is greater than the amount of tax that had been accounted for in respect of the supply prior to the Minister’s assessment of the net tax for the reporting period and if the person has paid or remitted all amounts owing to the Receiver General in respect of the net tax for the reporting period, if any, the following rules apply:
  • (a)the person shall, in prescribed form and in a manner satisfactory to the Minister, provide prescribed information in respect of the supply to each pension entity that is deemed to have paid tax in respect of the specified resource or part or in respect of the employer resource, as the case may be, under whichever of paragraphs (5)‍(d), (5.‍1)‍(d), (6)‍(d), (6.‍1)‍(d), (7)‍(d) and (7.‍1)‍(d) is applicable (in this subsection referred to as the “applicable paragraph”) before the day that is one year after the later of

    • (i)the day on which the Minister sends the notice of the assessment, and

    • (ii)the first day on which all amounts owing to the Receiver General in respect of the net tax for the reporting period, if any, have been paid or remitted; and

  • (b)if the person provides the prescribed information to a particular pension entity in accordance with paragraph (a) and if the prescribed information is received by the particular pension entity on a particular day that is after the end of the last claim period (as defined in subsection 259(1)) of the particular pension entity that ends within two years after the day on which the supply was deemed to have been made, for the purposes referred to in the applicable paragraph,

    • (i)the particular pension entity is deemed to have paid on the particular day tax equal to the amount determined by the formula

      A × (B ÷ C)
      where

      A
      is the amount of tax in respect of the specified resource or part or in respect of the employer resource, as the case may be, that the particular pension entity is deemed to have paid under the applicable paragraph,

      B
      is the difference between the tax in respect of the supply and the amount of tax that had been accounted for in respect of the supply prior to the Minister’s assessment of the net tax for the reporting period, and

      C
      is the tax in respect of the supply, and

    • (ii)if the applicable paragraph is paragraph (5)‍(d), (5.‍1)‍(d), (6)‍(d) or (6.‍1)‍(d), the tax that the particular pension entity is deemed to have paid under subparagraph (i) is deemed to be paid in respect of the supply of the specified resource or part or in respect of the supply of the employer resource, as the case may be, that the particular pension entity is deemed to have received under the applicable paragraph.

      End of inserted block

(2)Subsection (1) applies in respect of any notice of assessment, reassessment or additional assessment sent to a person by the Minister of National Revenue except that, in respect of a notice of assessment, reassessment or additional assessment sent by the Minister of National Revenue on or before August 9, 2022, paragraph 172.‍1(8.‍01)‍(a) of the Act, as enacted by subsection (1), is to be read as follows:

  • (a)the person may, in prescribed form and in a manner satisfactory to the Minister, provide prescribed information in respect of the supply to each pension entity that is deemed to have paid tax in respect of the specified resource or part or in respect of the employer resource, as the case may be, under whichever of paragraphs (5)‍(d), (5.‍1)‍(d), (6)‍(d), (6.‍1)‍(d), (7)‍(d) and (7.‍1)‍(d) is applicable (in this subsection referred to as the “applicable paragraph”) before the day that is one year after the later of

    • (i)the day on which the Act of Parliament that implements this subsection receives royal assent, and

    • (ii)the first day on which all amounts owing to the Receiver General in respect of the net tax for the reporting period, if any, have been paid or remitted; and

116(1)The Act is amended by adding the following after section 172.‍1:
Pension entity — assessment of supplier
Start of inserted block
172.‍11For the purposes of sections 225.‍2, 232.‍01, 232.‍02 and 261.‍01 and the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations, tax in respect of a supply of property or a service that became payable by a pension entity of a pension plan on a particular day is deemed to have become payable by the pension entity on the day on which the pension entity pays that tax and not to have become payable on the particular day if
  • (a)the supplier did not, before the end of the last claim period (as defined in subsection 259(1)) of the pension entity that ends within two years after the end of the claim period of the pension entity that includes the particular day, charge that tax;

  • (b)the supplier discloses in writing to the pension entity that the Minister has assessed the supplier for that tax;

  • (c)the pension entity pays that tax after the end of that last claim period; and

  • (d)that tax is not included in determining

    • (i)a rebate under subsection 261.‍01(2) that is claimed by the pension entity for that last claim period or an earlier claim period of the pension entity, or

    • (ii)an amount that a qualifying employer (as defined in subsection 261.‍01(1)) of the pension plan deducts in determining its net tax for a reporting period as a result of a joint election made under any of subsections 261.‍01(5), (6) and (9) with the pension entity for that last claim period or an earlier claim period of the pension entity.

      End of inserted block

(2)Subsection (1) applies in respect of tax that is paid by a pension entity in a claim period of the pension entity that ends after August 9, 2022.

117(1)Section 172.‍2 of the Act is amended by adding the following after subsection (3):
Assessment of supplier
Start of inserted block
(3.‍1)For the purposes of subsection (3), tax in respect of a supply of property or a service that became payable by a master pension entity on a particular day is deemed to have become payable by the master pension entity on the day on which the master pension entity pays that tax and not to have become payable on the particular day if
  • (a)the supplier did not, within two years after the particular day, charge that tax;

  • (b)the supplier discloses in writing to the master pension entity that the Minister has assessed the supplier for that tax; and

  • (c)the master pension entity pays that tax on a day that is more than two years after the particular day.

    End of inserted block

(2)Subsection (1) applies in respect of tax that is paid by a master pension entity after August 9, 2022.

118(1)The Act is amended by adding the following after section 188.‍1:
Start of inserted block
Cryptoassets
End of inserted block
Definitions
Start of inserted block
188.‍2(1)The following definitions apply in this section.

cryptoasset means property (other than prescribed property) that is a digital representation of value and that only exists at a digital address of a publicly distributed ledger.‍ (cryptoactif)

mining activity means an activity of

  • (a)validating transactions in respect of a cryptoasset and adding them to a publicly distributed ledger on which the cryptoasset exists at a digital address;

  • (b)maintaining and permitting access to a publicly distributed ledger on which a cryptoasset exists at a digital address; or

  • (c)allowing computing resources to be used for the purpose of, or in connection with, performing activities described in paragraph (a) or (b) in respect of a cryptoasset.‍ (activité de minage)

mining group means a group of persons that, under an agreement,

  • (a)pool property or services for the performance of mining activities; and

  • (b)share mining payments in respect of the mining activities among members of the group.‍ (groupe de minage)

mining group operator, in respect of a mining group, means a person that coordinates, oversees or manages the mining activities of the mining group.‍ (exploitant d’un groupe de minage)

mining payment, in respect of a mining activity, means money, property or a service that is a fee, reward or other form of payment and that is received or generated as a consequence of the mining activity being performed.‍ (paiement de minage)

End of inserted block
Acquisition, etc.‍, for mining activities
Start of inserted block
(2)For the purposes of this Part, to the extent that a person acquires, imports or brings into a participating province property or a service for consumption, use or supply in the course of, or in connection with, mining activities, the person is deemed to have acquired, imported or brought into the participating province, as the case may be, the property or service for consumption, use or supply otherwise than in the course of commercial activities of the person.
End of inserted block
Use, etc.‍, for mining activities
Start of inserted block
(3)For the purposes of this Part, if a person consumes, uses or supplies property or a service in the course of, or in connection with, mining activities, that consumption, use or supply is deemed to be otherwise than in the course of commercial activities of the person.
End of inserted block
Mining payment
Start of inserted block
(4)For the purposes of this Part, if a person receives a mining payment in respect of a mining activity,
  • (a)the provision of the mining activity is deemed not to be a supply;

  • (b)the provision of the mining payment is deemed not to be a supply; and

  • (c)in determining an input tax credit of another person that provides the mining payment, no amount is to be included in respect of tax that becomes payable, or is paid without having become payable, by the other person in respect of any property or service acquired, imported or brought into a participating province for consumption, use or supply in the course of, or in connection with, the provision of the mining payment by the other person.

    End of inserted block
Exception
Start of inserted block
(5)Subsections (2) to (4) do not apply in respect of a mining activity to the extent that the mining activity is performed by a particular person for another person if
  • (a)the identity of the other person is known to the particular person;

  • (b)where the mining activity is in respect of a mining group that includes the particular person, the other person is not a mining group operator in respect of the mining group; and

  • (c)where the other person is a non-resident person and is not dealing at arm’s length with the particular person, each property or service — being property or a service that is received by the other person from the particular person as a consequence of the performance of the mining activity — is supplied, or is used or consumed in the course of making a supply, by the other person to one or more persons each of which

    • (i)is a person whose identity is known to the other person,

    • (ii)deals at arm’s length with the other person, and

    • (iii)is not a mining group operator in respect of a mining group that includes the other person if the mining activity is in respect of that mining group.

      End of inserted block

(2)Subsection (1) is deemed to have come into force on February 5, 2022 except that, in determining an input tax credit of a person, paragraph 188.‍2(4)‍(c) of the Act, as enacted by subsection (1), does not apply in respect of property or a service acquired, imported or brought into a participating province before February 6, 2022.

119(1)The portion of subsection 232.‍01(5) of the Act before paragraph (a) is replaced by the following:

Effect of tax adjustment note
(5)If a person issues a tax adjustment note to a pension entity under subsection (3) in respect of all or part of a specified resource, a supply of the specified resource or part is deemed to have been received by the pension entity under subparagraph 172.‍1(5)‍(d)‍(i) or (5.‍1)‍(d)‍(i) and tax (in this subsection referred to as “deemed tax”) in respect of that supply is deemed to have been paid on a particular day under subparagraph 172.‍1(5)‍(d)‍(ii) or (5.‍1)‍(d)‍(ii) Insertion start or paragraph 172.‍1(8.‍01)‍(b) Insertion end by the pension entity, the following rules apply:

(2)Subsection (1) is deemed to have come into force on August 10, 2022.

120(1)The portion of subsection 232.‍02(4) of the Act before paragraph (a) is replaced by the following:

Effect of tax adjustment note
(4)If a person issues a tax adjustment note to a pension entity under subsection (2) in respect of particular employer resources consumed or used for the purpose of making an actual pension supply, a supply of each of those particular employer resources (each of which in this subsection is referred to as a “particular supply”) is deemed to have been received by the pension entity under subparagraph 172.‍1(6)‍(d)‍(i) or (6.‍1)‍(d)‍(i) and tax (in this subsection referred to as “deemed tax”) in respect of each of the particular supplies is deemed to have been paid under subparagraph 172.‍1(6)‍(d)‍(ii) or (6.‍1)‍(d)‍(ii) Insertion start or paragraph 172.‍1(8.‍01)‍(b) Insertion end by the pension entity, the following rules apply:

(2)Subsection (1) is deemed to have come into force on August 10, 2022.

121(1)Subparagraph (i) of the description of H in the definition pension rebate amount in subsection 261.‍01(1) of the Act is replaced by the following:

(i)if an application for a rebate under subsection (2) for the claim period is filed in accordance with subsection (3), Insertion start the total of Insertion end

Insertion start (A) Insertion end the total amount indicated on the application under subsection (3.‍1), Insertion start and Insertion end

Start of inserted block

(B)the total of all amounts, each of which is an eligible amount of the pension entity for the claim period that is described in paragraph (b) of the definition eligible amount and in respect of which a portion of the rebate is claimed by the pension entity in accordance with paragraph (3.‍2)‍(a),

End of inserted block

(2)The portion of subsection 261.‍01(3.‍1) of the Act before paragraph (a) is replaced by the following:

Application for rebate — pension rebate amount election
(3.‍1)An application for a rebate under subsection (2) for a claim period of a pension entity shall indicate the total of all amounts, each of which is an eligible amount of the pension entity for the claim period ( Insertion start other than an eligible amount in respect of which a portion of the rebate is claimed by the pension entity in accordance with paragraph (3.‍2)‍(a) Insertion end )

(3)Section 261.‍01 of the Act is amended by adding the following after subsection (3.‍1):

Separate claims for a claim period
Start of inserted block
(3.‍2)If an eligible amount of a pension entity for a claim period of the pension entity is an amount of tax that is deemed to have been paid under subparagraph 172.‍1(8.‍01)‍(b)‍(i), or to have become payable under section 172.‍11, the following rules apply:
  • (a)the portion of the rebate under subsection (2) for the claim period that is in respect of the excess pension rebate amount for the claim period in respect of the eligible amount may, despite subsection (4), be claimed in an application separate from the pension entity’s application for the portion of that rebate that is in respect of the remaining pension rebate amount for the claim period provided that the application for the portion of that rebate that is in respect of that excess pension rebate amount is filed by the pension entity after the beginning of the pension entity’s fiscal year that includes the claim period and not later than

    • (i)if the pension entity is a registrant, the day on or before which the pension entity is required to file the return under Division V for the claim period, or

    • (ii)in any other case, the last day of the claim period; and

  • (b)a particular election under subsection (5) or (6) for the claim period that is in respect of the excess pension rebate amount for the claim period in respect of the eligible amount may be made separately from an election under subsection (5) or (6), as the case may be, that is in respect of the remaining pension rebate amount for the claim period provided that the portion of the rebate under subsection (2) for the claim period that is in respect of that excess pension rebate amount is claimed by the pension entity in a separate application that is filed in accordance with paragraph (a) and the particular election is filed at the same time that the application is filed.

    End of inserted block
Definitions
Start of inserted block
(3.‍3)The following definitions apply in this subsection and subsection (3.‍2).

excess pension rebate amount for a claim period of a pension entity means, in respect of an amount of tax deemed to have been paid under subparagraph 172.‍1(8.‍01)‍(b)‍(i), or to have become payable under section 172.‍11, by the pension entity during the claim period, the amount that would be the pension rebate amount of the pension entity for the claim period if the amount of tax were the only eligible amount of the pension entity for the claim period.‍ (excédent du montant de remboursement de pension)

remaining pension rebate amount for a claim period of a pension entity means the amount determined by the formula

A − B
where

A
is the pension rebate amount of the pension entity for the claim period; and

B
is the total of all amounts, each of which is an excess pension rebate amount for the claim period in respect of which a portion of the rebate under subsection (2) for the claim period is claimed by the pension entity in accordance with paragraph (3.‍2)‍(a).‍ (solde du montant de remboursement de pension)

End of inserted block

(4)Subsections (1) to (3) are deemed to have come into force on August 10, 2022.

122(1)Subsection 1(1) of Part VII of Schedule VI to the Act is amended by adding the following in alphabetical order:

tangible personal property includes money;

(2)Subsection (1) is deemed to have come into force on August 10, 2022. It also applies in respect of a supply made before that date unless the supplier charged or collected, before that date, any amount as or on account of tax under Part IX of the Act in respect of the supply.

SOR/2001-171

Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations

123(1)Clauses (iii)‍(C) and (D) of the description of G3 in paragraph 46(a) of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations are replaced by the following:

(C)if a tax adjustment note is issued to the financial institution under subsection 232.‍01(3) of the Act in respect of all or part of a specified resource, if a supply of the specified resource or part is deemed for the purposes of section 232.‍01 of the Act to have been received by the financial institution under subparagraph 172.‍1(5)‍(d)‍(i) or (5.‍1)‍(d)‍(i) of the Act and if tax in respect of the supply is deemed for the purposes of section 232.‍01 of the Act to have been paid on a particular day under subparagraph 172.‍1(5)‍(d)‍(ii) or (5.‍1)‍(d)‍(ii) Insertion start or paragraph 172.‍1(8.‍01)‍(b) Insertion end of the Act by the financial institution, an amount that the financial institution would be required by paragraph 232.‍01(5)‍(c) of the Act to pay during the particular reporting period to the Receiver General as a result of the issuance of the tax adjustment note if the financial institution were a selected listed financial institution on the particular day, or

(D)if a tax adjustment note is issued to the financial institution under subsection 232.‍02(2) of the Act in respect of employer resources, if particular supplies (as referred to in subsection 232.‍02(4) of the Act) of those employer resources are deemed for the purposes of section 232.‍02 of the Act to have been received by the financial institution under subparagraph 172.‍1(6)‍(d)‍(i) or (6.‍1)‍(d)‍(i) of the Act and if tax in respect of each of the particular supplies is deemed for the purposes of section 232.‍02 of the Act to have been paid under subparagraph 172.‍1(6)‍(d)‍(ii) or (6.‍1)‍(d)‍(ii) Insertion start or paragraph 172.‍1(8.‍01)‍(b) Insertion end of the Act by the financial institution, an amount that the financial institution would be required by paragraph 232.‍02(4)‍(c) of the Act to pay during the particular reporting period to the Receiver General as a result of the issuance of the tax adjustment note if the financial institution were a selected listed financial institution on the first day on which an amount of tax is deemed for the purposes of section 232.‍02 of the Act to have been paid in respect of the particular supplies,

(2)Subsection (1) applies in respect of any reporting period of a person that ends after August 9, 2022.

PART 3
Amendments to the Excise Act, the Excise Act, 2001 and the Air Travellers Security Charge Act

DIVISION 1
Excise Act and Excise Act, 2001 (Alcohol Products)

R.‍S.‍, c. E-14

Excise Act

124(1)Section 170.‍2 of the Excise Act is amended by adding the following after subsection (2):
Adjustment — 2023
Start of inserted block
(2.‍1)In respect of the inflationary adjusted year that is 2023, the description of B in paragraph (2)‍(a) is deemed to be equal to 1.‍02.
End of inserted block

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

2002, c. 22

Excise Act, 2001

125(1)Section 123.‍1 of the Excise Act, 2001 is amended by adding the following after subsection (2):
Adjustment — 2023
Start of inserted block
(2.‍1)In respect of the inflationary adjusted year that is 2023, the description of B in paragraph (2)‍(a) is deemed to be equal to 1.‍02.
End of inserted block

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

126(1)Section 135.‍1 of the Act is amended by adding the following after subsection (2):
Adjustment — 2023
Start of inserted block
(2.‍1)In respect of the inflationary adjusted year that is 2023, the description of B in paragraph (2)‍(a) is deemed to be equal to 1.‍02.
End of inserted block

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

DIVISION 2
Air Travellers Security Charge Act (Charge Rates)

2002, c. 9, s. 5

Air Travellers Security Charge Act

127(1)The portion of paragraph 12(1)‍(a) of the Air Travellers Security Charge Act before subparagraph (i) is replaced by the following:
  • (a)$ Insertion start 9.‍46 Insertion end for each chargeable emplanement included in the service, to a maximum of $ Insertion start 18.‍92 Insertion end , if

(2)The portion of paragraph 12(1)‍(b) of the Act before subparagraph (i) is replaced by the following:
  • (b)$ Insertion start 9.‍94 Insertion end for each chargeable emplanement included in the service, to a maximum of $ Insertion start 19.‍87 Insertion end , if

(3)The portion of paragraph 12(1)‍(c) of the Act before subparagraph (i) is replaced by the following:
  • (c)$ Insertion start 16.‍08 Insertion end for each chargeable emplanement included in the service, to a maximum of $ Insertion start 32.‍16 Insertion end , if

(4)The portion of paragraph 12(1)‍(d) of the Act before subparagraph (i) is replaced by the following:
  • (d)$ Insertion start 16.‍89 Insertion end for each chargeable emplanement included in the service, to a maximum of $ Insertion start 33.‍77 Insertion end , if

(5)Paragraph 12(1)‍(e) of the Act is replaced by the following:
  • (e)$ Insertion start 34.‍42 Insertion end , if the service includes transportation to a destination outside the continental zone.

(6)The portion of paragraph 12(2)‍(a) of the Act before subparagraph (i) is replaced by the following:
  • (a)$ Insertion start 16.‍08 Insertion end for each chargeable emplanement by an individual on an aircraft used to transport the individual to a destination outside Canada but within the continental zone, to a maximum of $ Insertion start 32.‍16 Insertion end , if

(7)The portion of paragraph 12(2)‍(b) of the Act before subparagraph (i) is replaced by the following:
  • (b)$ Insertion start 16.‍89 Insertion end for each chargeable emplanement by an individual on an aircraft used to transport the individual to a destination outside Canada but within the continental zone, to a maximum of $ Insertion start 33.‍77 Insertion end , if

(8)Paragraph 12(2)‍(c) of the Act is replaced by the following:
  • (c)$ Insertion start 34.‍42 Insertion end , if the service includes transportation to a destination outside the continental zone.

(9)Subsections (1) to (8) apply in respect of an air transportation service that includes a chargeable emplanement after April 2024 unless

  • (a)if any consideration is paid or payable in respect of the service, all of the consideration is paid before May 2024; or

  • (b)if no consideration is paid or payable in respect of the service, a ticket is issued before May 2024.

PART 4
Various Measures

DIVISION 1
Bank Act

1991, c. 46

Amendments to the Act

128The definition external complaints body in section 2 of the Bank Act is replaced by the following:

external complaints body means the body corporate designated under subsection 627.‍48(1); (organisme externe de traitement des plaintes)

129Section 627.‍48 of the Act is replaced by the following:
Start of inserted block
External Complaints Body
End of inserted block
Purpose
Start of inserted block
627.‍471The purpose of sections 627.‍48 to 627.‍54 is to enhance the process for dealing with complaints by establishing a regime comprised of a sole external complaints body that discharges its functions and performs its activities in a transparent, effective, timely and fair manner based on the principles of accessibility, accountability, impartiality and independence.
End of inserted block
Designation of body corporate
627.‍48(1)The Minister may, on the recommendation of the Commissioner, Insertion start designate Insertion end a body corporate incorporated under the Canada Not-for-profit Corporations Act or under Insertion start a provincial statute equivalent to that Insertion end Act to be Insertion start the Insertion end external complaints body to deal with complaints referred to in paragraph 627.‍43(1)‍(a) that have not been resolved by its member institutions to the satisfaction of the persons who made the complaints Insertion start or that have not been dealt with within Insertion end the Insertion start prescribed period referred to Insertion end in Insertion start that paragraph Insertion end .
Matters for consideration
(2)Before Insertion start designating Insertion end a body corporate, the Minister shall take into account all matters that the Minister considers relevant, including whether the body corporate has
  • (a)the reputation required under paragraph 627.‍49(a); and

  • (b)policies and procedures and terms of reference that would enable it to Insertion start discharge Insertion end its functions Insertion start and perform its activities in a manner that is consistent with the purpose set out in section 627.‍471 Insertion end and to Insertion start comply with Insertion end paragraphs 627.‍49(b) to (m).

Obligation to be member
(3) Insertion start Every Insertion end institution shall be a member of Insertion start the external complaints Insertion end body.
Not an agent
(4)The Insertion start external complaints Insertion end body is not an agent of Insertion start His Insertion end Majesty.
Designation to be published
(5) Insertion start A designation made Insertion end under subsection (1) shall be published in the Canada Gazette.
130(1)The portion of section 627.‍49 of the Act before paragraph (a) is replaced by the following:
Requirements
627.‍49 Insertion start The external complaints Insertion end body shall
(2)Paragraphs 627.‍49(b) to (d) of the Act are replaced by the following:
  • (b)make its services available across Canada in both official languages and offer those services free of charge to persons who make complaints to it;

  • Start of inserted block

    (c)establish policies, procedures and terms of reference that are satisfactory to the Commissioner pertaining to, among other things, dealing with complaints and the consultation, at least once a year, of its member institutions and consumers for the purpose of raising concerns about the external complaints body;

  • (c.‍1)establish the manner of calculating, to the satisfaction of the Commissioner, the fees it charges to each of its member institutions for its services;

  • (c.‍2)make information available to consumers about their rights and responsibilities in relation to the external complaints handling regime, respond to their inquiries and requests for information and offer them assistance in making a complaint;

    End of inserted block
  • (d) Insertion start inform Insertion end the Commissioner in writing Insertion start within 30 days after the day on which Insertion end it determines that a complaint raises a Insertion start potential Insertion end systemic issue;

(3)Paragraph 627.‍49(e) of the French version of the Act is replaced by the following:
  • e)dans les trente jours qui suivent la date à laquelle Insertion start il Insertion end reçoit une plainte, aviser l’auteur de la plainte lorsque, selon Insertion start lui Insertion end , la plainte, ou toute partie de celle-ci, ne relève pas de son mandat, lui en fournir par écrit les raisons pour lesquelles elle n’en relève pas et lui fournir le nom de toute entité à qui il peut présenter la plainte;

(4)Paragraph 627.‍49(g) of the Act is replaced by the following:
  • (g)impartially deal with complaints referred to in paragraph 627.‍43(1)‍(a) that have not been resolved by its member institutions to the satisfaction of the persons who made the complaints Insertion start or that have not been dealt with within the prescribed period referred to in that paragraph Insertion end ;

(5)Paragraph 627.‍49(h) of the French version of the Act is replaced by the following:
  • h)au plus tard cent vingt jours après la date à laquelle Insertion start il Insertion end dispose de l’ensemble des renseignements nécessaires à l’examen de la plainte, présenter par écrit aux parties à la plainte une recommandation finale;

(6)Section 627.‍49 of the Act is amended by adding the following after paragraph (h):
  • Start of inserted block

    (h.‍1)without delay, inform the Commissioner in writing of cases in which an institution does not comply with a final recommendation;

    End of inserted block
(7)The portion of paragraph 627.‍49(i) of the French version of the Act before subparagraph (i) is replaced by the following:
  • i)dans les quatre-vingt-dix jours suivant la date à laquelle Insertion start il Insertion end présente une recommandation finale, rendre accessible sans frais sur son site Web un résumé de la décision, lequel comprend notamment :

(8)Section 627.‍49 of the Act is amended by adding the following after paragraph (i):
  • Start of inserted block

    (i.‍1)within 60 days after the end of each quarter, submit to the Commissioner, in a form satisfactory to the Commissioner,

    • (i)in relat