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Bill C-111

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Employment Insurance Account

Employment Insurance Account established

71. There shall be established in the accounts of Canada an account to be known as the Employment Insurance Account.

Payment into Consolidated Revenue Fund

72. There shall be paid into the Consolidated Revenue Fund

    (a) all amounts received under Parts I and III to IX, as or on account of premiums, fines, penalties, interest, repayment of overpaid benefits and benefit repayment;

    (b) all amounts collected by the Commission for services rendered to other government departments or agencies or to the public; and

    (c) all amounts received on account of principal or interest on loans made by the Commission under Part II or as repayment of overpayments made by the Commission under that Part.

Credits to Employment Insurance Account

73. There shall be credited to the Employment Insurance Account and charged to the Consolidated Revenue Fund

    (a) an amount in each year equal to the amount receivable as or on account of premiums payable for that year under this Act;

    (b) any other amounts provided out of the Consolidated Revenue Fund appropriated by Parliament for any purpose related to employment insurance and administered by the Commission; and

    (c) an amount equal to all benefit repayments receivable under Part VII.

Government premiums

74. There shall be credited to the Employment Insurance Account and charged to the Consolidated Revenue Fund an amount equal to the premiums required to be paid by Her Majesty in right of Canada as employer's premiums for persons employed in insurable employment by Her Majesty in right of Canada.

Other credits to Employment Insurance Account

75. There shall be credited to the Employment Insurance Account all amounts paid into the Consolidated Revenue Fund that are

    (a) received as or on account of penalties imposed under section 38 or 39 or interest on overpayment of benefits, and repayments of overpaid benefits, except interest and penalties on benefit repayment;

    (b) collected by the Commission for services rendered to other government departments or agencies or to the public;

    (c) received on account of principal or interest on loans made by the Commission under Part II;

    (d) received as repayments of overpayments by the Commission under section 61 for employment benefits and support measures authorized by Part II; or

    (e) received as repayments of overpayments by the Commission under agreements entered into under section 63.

Interest

76. The Minister of Finance may authorize the payment of interest on the balance in the Employment Insurance Account in accordance with such terms and conditions and at such rates as the Minister of Finance may establish and the interest shall be credited to the Employment Insurance Account and charged to the Consolidated Revenue Fund.

Charges to the Account

77. (1) There shall be paid out of the Consolidated Revenue Fund and charged to the Employment Insurance Account

    (a) all amounts paid as or on account of benefits under this Act;

    (b) all amounts paid under section 61 for employment benefits and support measures authorized by Part II;

    (c) all amounts paid under agreements entered into under section 63; and

    (d) the costs of administering this Act.

Payment by special warrants

(2) Notwithstanding the Financial Administration Act, amounts mentioned in paragraph (1)(a) shall be paid by special warrants drawn on the Receiver General and issued by the Commission by electronic means or bearing the printed signature of the Chairman and Vice-Chairman of the Commission, and amounts mentioned in paragraphs (1)(b) and (c) may be paid by the special warrants.

No charge for negotiation

(3) The special warrants are negotiable without charge at any financial institution in Canada.

Maximum amount that may be paid under Part II

78. The total amount that may be paid out by the Commission under Part II and charged to the Employment Insurance Account under this Part in a fiscal year must not exceed 0.8% of the insurable earnings of all insured persons from which the prescribed amount is deducted under subsection 82(1) in that year as or on account of employee's premiums, as estimated by the Commission and set out in the Main Estimates tabled in Parliament.

Plan

79. The Minister shall, with the concurrence of the Minister of Finance,

    (a) submit to the Treasury Board for approval a plan for each fiscal year estimating the amounts to be paid for that year under Part II; and

    (b) have the plan included in the Main Estimates tabled in Parliament for the fiscal year.

Advances

80. (1) If the amount standing to the credit of the Employment Insurance Account is not sufficient for the payment of amounts authorized to be charged to that Account, the Minister of Finance, when requested by the Commission, may authorize the advance to the Account from the Consolidated Revenue Fund of an amount sufficient to make the payment.

Advances repayable

(2) The advance shall be credited to the Employment Insurance Account and be repaid in such manner and on such terms and conditions as the Minister of Finance may establish.

Repayment

(3) The repayment of the amount advanced and the interest on it, if any, shall be charged to the Employment Insurance Account.

PART IV

INSURABLE EARNINGS AND COLLECTION OF PREMIUMS

Interpretation

Definitions

81. In this Part,

``authorized person''
« personne autorisée »

``authorized person'' means a person authorized by the Minister for the purposes of this Part;

``judge''
« juge »

``judge'' means a judge of a superior court having jurisdiction in the province where the matter arises or a judge of the Federal Court;

``Minister''
« ministre »

``Minister'' means the Minister of National Revenue.

Payment of Premiums

Deduction and payment of premiums

82. (1) Every employer paying remuneration to a person they employ in insurable employment shall

    (a) deduct the prescribed amount from the remuneration as or on account of the employee's premium payable by that insured person under section 67 for any period for which the remuneration is paid; and

    (b) remit the amount, together with the employer's premium payable by the employer under section 68 for that period, to the Receiver General at the prescribed time and in the prescribed manner.

Maximum deduction by a particular employer

(2) The employer shall not make any deduction as or on account of the person's premium for a year if in that year the insurable earnings paid by the employer to the person have reached the maximum yearly insurable earnings.

Payment at financial institution

(3) If the employer is a prescribed person at the prescribed time, the remittance shall be made to the account of the Receiver General at a financial institution, within the meaning that would be assigned by the definition ``financial institution'' in subsection 190(1) of the Income Tax Act if it were read without reference to paragraphs (d) and (e) of that subsection.

Liability for failure to deduct

(4) Subject to subsection (5), an employer who fails to deduct and remit an amount from the remuneration of an insured person as and when required under subsection (1) is liable to pay to Her Majesty the whole amount that should have been deducted and remitted from the time it should have been deducted.

Subsequent decision

(5) An employer is not liable for failing to make a deduction from the remuneration of an insured person or for any amount that should have been deducted if

    (a) the employer is informed in writing in a ruling under section 90 that the employer is not required to make the deduction,

    (b) the ruling is not based on information provided by the employer to the Minister that was incorrect in a material particular, and

    (c) it is subsequently decided under section 91 or 103 that the deduction should have been made,

but once the decision under section 91 or 103 is communicated to the employer, the employ er is liable without interest or penalties under this Act to pay the premium required to be paid by the employer with respect to the insured person.

Deduction from subsequent payment of remuneration

(6) An employer who fails to deduct the employee's premium as required by subsection (1) from a payment of remuneration to an insured person may deduct an amount equal to it from any subsequent payment of remuneration made to the insured person within 12 months after making the payment from which the deduction was required, but the employer may not deduct, in addition to the premium required by subsection (1), more than one other such premium that the employer previously failed to deduct.

Amount deducted deemed received

(7) If an amount has been deducted under subsection (1), it is deemed for all purposes to have been received at that time by the insured person to whom the remuneration was payable.

Interest on amounts not remitted

(8) If an employer has failed to remit to the Receiver General an amount that the employer was required to remit at the time when it was required, the employer shall pay to the Receiver General interest on that amount at the prescribed rate computed from the day on which the employer was so required to remit the amount to the day of remittance of the amount to the Receiver General.

Penalty for failure to remit

(9) Every employer who in a year fails to remit to the Receiver General an amount that the employer is required to remit at the time when it is required is liable to a penalty of

    (a) 10% of the amount; or

    (b) 20% of the amount if at the time of the failure a penalty under this subsection was payable by the employer for an amount that the employer was required to remit during the year and the failure was made knowingly or under circumstances amounting to gross negligence.

Liability of directors

83. (1) If an employer who fails to deduct or remit an amount as and when required under subsection 82(1) is a corporation, the persons who were the directors of the corporation at the time when the failure occurred are jointly and severally liable, together with the corporation, to pay Her Majesty that amount and any related interest or penalties.

Application of Income Tax Act provisions

(2) Subsections 227.1(2) to (7) of the Income Tax Act apply, with such modifications as the circumstances require, to a director of the corporation.

Assessment provisions applicable to directors

(3) The provisions of this Part respecting the assessment of an employer for an amount payable under this Act and respecting the rights and obligations of an employer so assessed apply to a director of the corporation in respect of an amount payable by the director under subsection (1) in the same manner and to the same extent as if the director were the employer mentioned in those provisions.

Employer's premium not recoverable

84. Despite any contract to the contrary, an employer is not entitled to recover from an insured person the employer's premium payable by the employer either by withholding the amount of the premium from the person's wages or otherwise.

Assessment

85. (1) The Minister may assess an employer for an amount payable by the employer under this Act, or may reassess the employer or make such additional assessments as the circumstances require, and the expression ``assessment'' when used in this Act with reference to any action so taken by the Minister under this section includes a reassessment or an additional assessment.

Notice of assessment and liability of employer

(2) After assessing an employer for an amount payable under this Act, the Minister shall send the employer a notice of assessment, and when the notice is sent the assessment is valid and binding subject to being vacated or varied on appeal under this Act, and the employer is liable to pay the amount to Her Majesty without delay.

Limitation on assessments

(3) No assessment, reassessment or additional assessment of an amount payable by an employer under this Act may be made by the Minister under this section after three years have elapsed after the end of the year in which any premium in relation to which that amount is payable should have been paid, unless the employer has made a misrepresentation or committed fraud in filing a return or in supplying information about the return under this Part.

Mailing date

(4) The day of mailing of a notice of assessment described in subsection (2) is, in the absence of any evidence to the contrary, deemed to be the day appearing from the notice to be the date of the notice unless called into question by the Minister or by a person acting for the Minister or for Her Majesty.

Recovery

86. (1) All premiums, interest, penalties and other amounts payable by an employer under this Act are debts due to Her Majesty and are recoverable in the Federal Court or any other court of competent jurisdiction or in any other manner provided for by this Act.

Amounts deducted and not remitted

(2) If an employer has deducted an amount from the remuneration of an insured person as or on account of any employee's premium required to be made by the insured person, but has not remitted the amount to the Receiver General,

    (a) the employer is deemed to hold the amount so deducted in trust, separate and apart from the employer's own money, for Her Majesty and for payment to Her Majesty in the manner and at the time provided under this Act; and

    (b) Her Majesty has a lien and charge on the property and assets of the employer, whether or not the employer has kept the amount separate and apart or is in receivership, bankruptcy or liquidation or has made an assignment.

Certificate before distribution

(3) Before distributing any property over which a responsible representative has control in that capacity, the responsible representative shall obtain a certificate from the Minister certifying the payment, or acceptance by the Minister of security for payment, of all amounts

    (a) for which an employer is liable under this Act up to and including the date of distribution; and

    (b) for the payment of which the responsible representative is or can reasonably be expected to become liable in that capacity.

Personal liability

(4) If the responsible representative distributes to one or more persons property over which the responsible representative has control in that capacity, without obtaining the certificate, the responsible representative is personally liable for the payment of the amounts to the extent of the value of the property distributed and the Minister may assess the responsible representative for the amounts in the same manner and with the same effect as an assessment made under section 85.

Security

(5) If the Minister considers it advisable in a particular case, the Minister may accept security for payment of premiums by way of mortgage, hypothec or other charge of any kind whatever on property of the employer or any other person or by way of guarantee from other persons.

Trustee in bankruptcy

(6) If an employer has become bankrupt, the trustee in bankruptcy is deemed to be the agent of the bankrupt for the purposes of this Act.

Definition of ``responsible representative ''

(7) For the purposes of this section, ``responsible representative'' means a person, other than a trustee in bankruptcy, who is an assignee, liquidator, receiver, receiver-manager, administrator, executor, liquidator of the succession or any other like person administering, winding up, controlling or otherwise dealing with a property, business or estate of another person.

Records and books

87. (1) An employer paying remuneration to a person they employ in insurable employment shall keep records and books of account at the employer's place of business or residence in Canada, or at such other place as may be designated by the Minister, in such form and containing such information, including the Social Insurance Number of each insured person, as will enable the determination of any premiums payable under this Act or any premiums or other amounts that should have been deducted or paid.

Specification of required books and records

(2) If the employer has failed to keep adequate records and books of account, the Minister may require the employer to keep such records and books of account as the Minister may specify, and the employer shall keep the required records and books of account.

Retention for six years

(3) The employer shall retain the records and books of account and every account and voucher necessary to verify the information contained in them for six years after the year for which they are kept, or until written permission for their prior disposal is given by the Minister.

Retention for ruling or appeal

(4) If the employer or one of their employees is subject to a ruling under section 90 or has made an appeal to the Minister under section 91, the employer shall retain every record, book of account, account and voucher necessary for dealing with the ruling or the appeal until the ruling is made or the appeal is disposed of and any further appeal is disposed of or the time for filing a further appeal has expired.

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