An Act to implement certain provisions of the budget tabled in Parliament on March 23, 2004 (S.C. 2004, c. 22)
Full Document:
Assented to 2004-05-14
An Act to implement certain provisions of the budget tabled in Parliament on March 23, 2004
S.C. 2004, c. 22
Assented to 2004-05-14
An Act to implement certain provisions of the budget tabled in Parliament on March 23, 2004
SUMMARY
Part 1 of this enactment amends Part I of the Federal Provincial Fiscal Arrangements Act to authorize the Minister of Finance to make fiscal equalization payments to the provinces for each of the five fiscal years in the period beginning on April 1, 2004 and ending on March 31, 2009 and to change the manner in which those payments will be calculated. It also amends Part V.1 of that Act to increase the amount that Canada will pay under the Canada Social Transfer in respect of the fiscal year beginning on April 1, 2004 and the fiscal year beginning on April 1, 2005.
Part 2 makes a consequential amendment to the Canada Newfoundland Atlantic Accord Implementation Act.
Part 3 amends the Canada Foundation for Sustainable Development Technology Act and provides for the making of certain payments to a trust, the Province of Nova Scotia, the Province of Saskatchewan, the Canada Foundation for Sustainable Development Technology and the Canada Health Infoway Inc.
Part 4 amends the Canada Pension Plan to clarify the rules governing contributions to the Canada Pension Plan and refunds of amounts remitted in relation to employers' contributions and to allow for the reinstatement of certain disability benefits.
With respect to the rules governing contributions to the Canada Pension Plan, the amendments allow an employer who immediately succeeds another employer, in a year after 2003, as a result of a change in business structure to take into account amounts relating to the determination of the contributions for an employee of the predecessor employer in determining contributions for the employee of the successor employer. The amendments also provide for situations where self employed individuals become employees of a corporation controlled by them or vice versa.
Other amendments clarify the amount of annual employers' contributions required under the Act and specify that only amounts remitted in excess of the required amount may be refunded to the employer. Those amendments are deemed to have come into force on March 18, 2003.
With respect to reinstatement of disability benefits, the amendments allow for reinstatement of a disability pension that has ceased to be payable because a person has returned to work, if the person again becomes incapable of working within a two year period after the date when payment of the pension ceased. It also provides for reinstatement of a disabled contributor's child benefit to the child of a person whose disability pension is reinstated.
Part 5 amends the Employment Insurance Act to provide the Governor in Council with the authority to set the employment insurance premium rate for 2005. It also amends that Act to effect amendments that are equivalent to those made in Part 4 to the Canada Pension Plan with respect to contributions in the event of business restructuring.
Part 6 amends the Farm Credit Canada Act to increase the capital of Farm Credit Canada.
Part 7 amends the Excise Tax Act to implement the 100 percent rebate of the Goods and Services Tax and the federal component of the Harmonized Sales Tax for municipalities. It also amends the Act to make certain supplies of property and services made by municipalities taxable, to introduce new rules to modify the determination of the basic tax content of property of a municipality and to provide for the public disclosure of the amount of the incremental rebate paid to individual municipalities. Those amendments generally apply as of February 1, 2004.
Part 8 amends the Air Travellers Security Charge Act, the Excise Act, the Excise Act, 2001, the Excise Tax Act and the Income Tax Act to implement a uniform 10 year limitation period for the collection of amounts payable or remittable under those Acts effective as of March 4, 2004 when those amendments were first publicly proposed. It stipulates that certain collection actions or events restart or extend the limitation period. It precludes any claim because of the timing of action taken before March 4, 2004 to collect a charge debt or tax debt under those Acts. It also provides for a 10 year limitation period to begin March 4, 2004 for all amounts unpaid or unremitted under those Acts on that date. In addition, it ensures that the 10 year limitation period begins on that date for any of those amounts that would otherwise be affected by a court order made after March 3, 2004 and before the amendments in this Part come into force, which is the day on which they receive royal assent.
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
SHORT TITLE
Marginal note:Short title
1. This Act may be cited as the Budget Implementation Act, 2004.
PART 1R.S., c. F8; 1995, c. 17, s. 45(1)AMENDMENTS TO THE FEDERALPROVINCIAL FISCAL ARRANGEMENTS ACT
Fiscal Equalization Payments
Marginal note:1999, c. 11, s. 1
2. Section 3 of the Federal-Provincial Fiscal Arrangements Act is replaced by the following:
Marginal note:Fiscal equalization payments
3. Subject to the other provisions of this Act, the Minister may pay to a province for each fiscal year in the period beginning on April 1, 2004 and ending on March 31, 2009 a fiscal equalization payment not exceeding the amount computed in accordance with section 4.
Marginal note:1999, c. 11, s. 2(1)
3. (1) Subsections 4(1) to (1.4) of the Act are replaced by the following:
Marginal note:Computation of payments
4. (1) Subject to the other provisions of this Part, the fiscal equalization payment that may be paid to a province for a fiscal year is the amount determined by the Minister by the formula
1.10 (A + B + C)/3
where
- A
- is the greater of
(a) the product obtained by multiplying
(i) the aggregate of the amounts obtained by subtracting, for each revenue source, the per capita yield in that province for the revenue source for the immediately preceding fiscal year from the average per capita yield of the provinces of Ontario, Quebec, British Columbia, Manitoba and Saskatchewan for the revenue source for the immediately preceding fiscal year
by
(ii) the population of the province for the immediately preceding fiscal year, and
(b) zero;
- B
- is the greater of
(a) the product obtained by multiplying
(i) the aggregate of the amounts obtained by subtracting, for each revenue source, the per capita yield in that province for the revenue source for the fiscal year two years prior to that fiscal year from the average per capita yield of the provinces of Ontario, Quebec, British Columbia, Manitoba and Saskatchewan for the revenue source for the fiscal year two years prior to that fiscal year
by
(ii) the population of the province for the fiscal year two years prior to that fiscal year, and
(b) zero;
- C
- is the greater of
(a) the product obtained by multiplying
(i) the aggregate of the amounts obtained by subtracting, for each revenue source, the per capita yield in that province for the revenue source for the fiscal year three years prior to that fiscal year from the average per capita yield of the provinces of Ontario, Quebec, British Columbia, Manitoba and Saskatchewan for the revenue source for the fiscal year three years prior to that fiscal year
by
(ii) the population of the province for the fiscal year three years prior to that fiscal year, and
(b) zero;
Marginal note:Payment for fiscal year 20042005
(1.1) The fiscal equalization payment that may be paid to a province for the fiscal year beginning on April 1, 2004 is the amount calculated in accordance with the former legislation. Subsections (6) and (7), as they read immediately before the coming into force of this subsection, apply to that payment as if those subsections expressly provided that they apply to it.
Marginal note:Payment for fiscal year 20052006
(1.2) The fiscal equalization payment that may be paid to a province for the fiscal year beginning on April 1, 2005 is the amount determined by the Minister by the formula
2D + E
where
- D
- is one third of the amount calculated in accordance with the former legislation; and
- E
- is 1.10 x A/3, where A has the same description as in subsection (1).
Marginal note:Payment for fiscal year 20062007
(1.3) The fiscal equalization payment that may be paid to a province for the fiscal year beginning on April 1, 2006 is the amount determined by the Minister by the formula
F + G + H
where
- F
- is one third of the amount calculated in accordance with the former legislation;
- G
- is 1.10 x A/3, where A has the same description as in subsection (1); and
- H
- is 1.10 x B/3, where B has the same description as in subsection (1).
(2) The portion of subsection 4(2) of the Act before the definition “national average rate of tax” is replaced by the following:
Marginal note:Definitions
(2) In this section and in section 4.1,
(3) Subsection 4(2) of the Act is amended by adding the following in alphabetical order:
“former legislation”
« législation antérieure »
“former legislation” means subsection 4(1) of this Act and section 6 of the Federal-Provincial Fiscal Arrangements Regulations, 1999, as this Act and those Regulations read on March 31, 2004;
Marginal note:1999, c. 11, s. 2(4)
(4) The portion of subsection 4(6) of the Act before paragraph (a) is replaced by the following:
Marginal note:Minimum payment to province in certain cases
(6) Notwithstanding subsections (1) and (1.2) to (5) but subject to subsection (9), the fiscal equalization payment that may be paid to a province for a fiscal year beginning on or after April 1, 2005, if the province received a fiscal equalization payment for the immediately preceding fiscal year, shall not be less than the greater of
Marginal note:1999, c. 11, s. 2(4)
(5) Subsection 4(7) of the Act is replaced by the following:
Definition of “national per capita equalization standard”
(7) For the purposes of this section, “national per capita equalization standard” means the average per capita yield of the provinces of Ontario, Quebec, British Columbia, Manitoba and Saskatchewan for all revenue sources.
Definition of “threshold amount”
(8) For the purposes of subsection (6), the “threshold amount”
(a) for a fiscal year, except as otherwise provided by paragraphs (b) and (c), is the amount determined by the formula
0.016x 1.10 x X x Y
where
- X
- is one third of the sum of the national per capita equalization standard for the immediately preceding fiscal year, the national per capita equalization standard for the fiscal year two years prior to that fiscal year and the national per capita equalization standard for the fiscal year three years prior to that fiscal year, and
- Y
- is the least of the population of the province for the immediately preceding fiscal year, the population for the fiscal year two years prior to that fiscal year and the population for the fiscal year three years prior to that fiscal year;
(b) for the fiscal year 20052006, is the amount determined by the formula
0.016 x X1 x Y1
where
- X1
- X1 is the sum of two thirds of the national per capita equalization standard for the fiscal year 2005–2006 calculated taking into account section 6 of the Federal-Provincial Fiscal Arrangements Regulations, 1999, as those Regulations read on March 31, 2004, and one third of the national per capita equalization standard for the fiscal year 2004–2005 plus 10 per cent, and
- Y1
- is the lesser of the population of the province for the fiscal year 2004–2005 and the population for the fiscal year 2005–2006; and
(c) for the fiscal year 2006–2007, the amount determined by the formula
0.016 x X2 x Y2
where
- X2
- is the sum of one third of the national per capita equalization standard for the fiscal year 2006–2007 calculated taking into account section 6 of the Federal-Provincial Fiscal Arrangements Regulations, 1999, as those Regulations read on March 31, 2004, one third of the national per capita equalization standard for the fiscal year 2005–2006 plus 10 per cent, and one third of the national per capita equalization standard for 2004–2005 plus 10 per cent, and
- Y2
- is the least of the population of the province for the fiscal year 2004–2005, the population for the fiscal year 2005–2006 and the population for the fiscal year 2006–2007.
Marginal note:1994, c. 2, s. 2(3); 1999, c. 11, s. 2(6)
(6) Subsections 4(10) and (11) of the Act are replaced by the following:
Marginal note:Adjustment of revenue to be equalized
(10) Subject to subsection (11), for a fiscal year in the period beginning on April 1, 1993 and ending on March 31, 2005, where a province that qualifies for a fiscal equalization payment under this Part for the fiscal year has 70 per cent or more of the revenue base for all of the provinces in the fiscal year in respect of a revenue source described in the definition “revenue source” in subsection (2) as revised or altered in accordance with subsection (3), the revenue to be equalized from that revenue source for all of the provinces for the fiscal year is an amount equal to 70 per cent of the revenue as determined before the adjustment from that revenue source for all of the provinces in respect of the fiscal year.
Marginal note:Adjustment of revenue to be equalized
(10.1) Subject to subsections (11) and (11.1), for a fiscal year beginning on or after April 1, 2005, the revenue to be equalized from a revenue source described in the definition “revenue source” in subsection (2) as revised or altered in accordance with subsection (3), for all of the provinces, derived in any of the fiscal years taken into account in the calculation of the fiscal equalization payment for that fiscal year, is an amount equal to 70 per cent of the revenue as determined before the adjustment from that revenue source for all of the provinces for any of those fiscal years taken into account, if in any of those fiscal years taken into account
(a) a province has 70 per cent or more of the revenue base for all of the provinces in that fiscal year in respect of a revenue source; and
(b) the aggregate of that province's per capita yields for all revenue sources is less than the aggregate of the averages of the per capita yields for all revenue sources for the provinces of Ontario, Quebec, British Columbia, Manitoba and Saskatchewan.
Marginal note:Election
(11) In order for subsections (10) and (10.1), as the case may be, to apply in respect of the offshore minerals revenue included in the description set out in paragraph (z.5) of the definition “revenue source” in subsection (2) as revised or altered in accordance with subsection (3), a province that is eligible for a fiscal equalization offset payment under the CanadaNewfoundland Atlantic Accord Implementation Act, in respect of a fiscal year in the period beginning on April 1, 2004 and ending on March 31, 2007, shall make an election, in the prescribed manner, within 15 days after the Chief Statistician of Canada submits to the Minister a certificate in respect of the fiscal year for which the election is made in accordance with subsection 9(2) of the FederalProvincial Fiscal Arrangements Regulations, 1999.
Marginal note:Election
(11.1) In order for subsection (10.1) to apply in respect of the offshore minerals revenue included in the description set out in paragraph (z. 5) of the definition “revenue source” in subsection (2) as revised or altered in accordance with subsection (3), a province that is eligible for a fiscal equalization offset payment under the Canada-Newfoundland Atlantic Accord Implementation Act, in respect of a fiscal year beginning on or after April 1, 2007, shall make an election, in the prescribed manner, within 15 days after the Chief Statistician of Canada submits to the Minister a certificate in respect of the fiscal year immediately preceding the fiscal year for which the election is made, in accordance with subsection 9(2) of the Federal-Provincial Fiscal Arrangements Regulations, 1999.
4. The Act is amended by adding the following after section 4:
Marginal note:Adjustment of fiscal equalization payment
4.1 (1) Notwithstanding subsections 4(1), (1.2) and (1.3), in respect of a fiscal year beginning on or after April 1, 2005, the Minister may, on or before March 31 of that fiscal year, on the request of a province made in the prescribed manner on or before March 31 of that fiscal year, adjust the fiscal equalization payment calculated under section 4 for the province for that fiscal year, if
(a) the province derived, in that fiscal year, revenues from any of the revenue sources described in paragraphs (m) to (u) of the definition “revenue source” in subsection 4(2) as revised or altered in accordance with subsection 4(3); and
(b) the per capita yield of that province for that revenue source was greater than the average per capita yield of the provinces of Ontario, Quebec, British Columbia, Manitoba and Saskatchewan for that revenue source in that fiscal year.
Marginal note:Calculation of adjustment
(2) The amount of the adjustment referred to in subsection (1) is equal to the estimate, calculated by March 31 of that fiscal year, of
(a) the product obtained by multiplying
(i) the aggregate of the amounts obtained by subtracting the per capita yield in that province for each revenue source referred to in paragraph (1)(a), and to which paragraph (1)(b) applies, for that fiscal year from the average per capita yield of the provinces of Ontario, Quebec, British Columbia, Manitoba and Saskatchewan for that revenue source for that fiscal year
by
(ii) the population of the province for that fiscal year
minus
(b) the average of the products, for each of the fiscal years taken into account in the calculation of the fiscal equalization payment for the fiscal year, obtained by multiplying
(i) the aggregate of the amounts obtained by subtracting the per capita yield in that province for each revenue source referred to in paragraph (1)(a), and to which paragraph (1)(b) applies, for one of those fiscal years taken into account from the average per capita yield of the provinces of Ontario, Quebec, British Columbia, Manitoba and Saskatchewan for that revenue source for that fiscal year
by
(ii) the population of the province for that fiscal year.
Marginal note:Negative result
(3) If the amount of the adjustment in subsection (2) is negative, the Minister shall pay to the province one third of the absolute value of that amount in each of the three fiscal years immediately following the fiscal year in respect of which the adjustment is made.
Marginal note:Positive result
(4) If the amount of the adjustment in subsection (2) is positive, the Minister shall recover that amount from the province by deducting one third of that amount from the fiscal equalization payment for that province in each of the three fiscal years immediately following the fiscal year in respect of which the adjustment is made.
Marginal note:Recovery
(5) If, on March 31 of the third fiscal year after the fiscal year in which the adjustment is made, the total amount of that adjustment has not been recovered, the Minister may recover the amount remaining as a debt due to Her Majesty in right of Canada out of any sum of money that may be due or payable by Her Majesty in right of Canada to the province pursuant to this Act or any other Act of Parliament.
Marginal note:Payment to a province
4.2 (1) Notwithstanding subsection 4(1.1), the Minister may, on the request of a province made in the prescribed manner on or before March 10, 2005, make a payment to the province for the fiscal year beginning on April 1, 2004 in an amount not greater than the amount by which
(a) the estimate, calculated by March 10, 2005, of the fiscal equalization payment for that province for the fiscal year beginning on April 1, 2004
Marginal note:is less than
(b) the estimate, calculated by March 10, 2005, of the average of the fiscal equalization payments for that province for the four fiscal years in the period beginning on April 1, 1999 and ending on March 31, 2003.
Marginal note:Deductions
(2) Where a province has received a payment under subsection (1), the Minister shall, in the amounts prescribed in the regulations, reduce the fiscal equalization payments to the province for the fiscal years in the period beginning on April 1, 2005 and ending on March 31, 2009. If, on March 31, 2009, the total amount of that payment has not been recovered, the Minister may recover the amount remaining as a debt due to Her Majesty in right of Canada out of any sum of money that may be due or payable by Her Majesty in right of Canada to the province pursuant to this Act or any other Act of Parliament.
Marginal note:Additional fiscal equalization payment
4.3 (1) Notwithstanding subsections 4(1.1) and (1.2), the Minister may make an additional fiscal equalization payment
(a) in the fiscal year in which this section comes into force,
(i) to Quebec, in the amount of $69,640,666.74,
(ii) to Nova Scotia, in the amount of $8,674,951.83,
(iii) to New Brunswick, in the amount of $6,951,991.15,
(iv) to Manitoba, in the amount of $10,813,779.78,
(v) to British Columbia, in the amount of $38,634,050.87,
(vi) to Prince Edward Island, in the amount of $1,280,669.01,
(vii) to Saskatchewan, in the amount of $9,196,695.51, and
(viii) to Newfoundland and Labrador, in the amount of $4,807,195.11; and
(b) in the fiscal year beginning on April 1, 2005,
(i) to Quebec, in the amount of $11,613,596.18,
(ii) to Nova Scotia, in the amount of $1,440,955.45,
(iii) to New Brunswick, in the amount of $1,153,751.37,
(iv) to Manitoba, in the amount of $1,803,392.10,
(v) to British Columbia, in the amount of $6,454,615.15,
(vi) to Prince Edward Island, in the amount of $213,406.48,
(vii) to Saskatchewan, in the amount of $1,523,209.86, and
(viii) to Newfoundland and Labrador, in the amount of $797,073.41.
Marginal note:Not applicable
(2) Subsections 4(6), (10) and (10.1) and section 4.1 of this Act, and sections 8 and 9 of the FederalProvincial Fiscal Arrangements Regulations, 1999 do not apply to payments made under subsection (1).
Canada Social Transfer
Marginal note:2003, c. 15, s. 8
5. Subparagraphs 24.4(1)(a)(ii) and (iii) of the Act are replaced by the following:
(ii) $150 million for the fiscal year beginning on April 1, 2004,
(iii) $8.225 billion for the fiscal year beginning on April 1, 2005,
PART 21987, c. 3AMENDMENT TO THE CANADA-NEWFOUNDLAND ATLANTIC ACCORD IMPLEMENTATION ACT
6. Section 220 of the Canada-Newfoundland Atlantic Accord Implementation Act is replaced by the following:
Marginal note:Calculation
220. The fiscal equalization offset payment that is to be paid to Her Majesty in right of the Province for a fiscal year pursuant to section 219 is the amount, as determined by the Federal Minister, equal to the aggregate of
(a) the amount, if any, by which
(i) the fiscal equalization payment that may be paid to Her Majesty in right of the Province for the fiscal year under Part I of the Fiscal Arrangements Act
is less than
(ii) where the average of the per capita fiscal capacity of the Province for the fiscal years taken into account in the calculation of the fiscal equalization payment for that fiscal year is less than or equal to 70 per cent of the average, for those fiscal years, of the national average per capita fiscal capacity, 95 per cent,
(iii) where the average of the per capita fiscal capacity of the Province for the fiscal years taken into account in the calculation of the fiscal equalization payment for that fiscal year is less than or equal to 75 per cent but greater than 70 per cent of the average, for those fiscal years, of the national average per capita fiscal capacity, 90 per cent, or
(iv) where the average of the per capita fiscal capacity of the Province for the fiscal years taken into account in the calculation of the fiscal equalization payment for that fiscal year is greater than 75 per cent of the average, for those fiscal years, of the national average per capita fiscal capacity, 85 per cent
of the aggregate of the fiscal equalization payment that may be paid to Her Majesty in right of the Province under Part I of the Fiscal Arrangements Act for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with this paragraph for the fiscal year immediately preceding the fiscal year, and
(b) the phaseout portion, in respect of the fiscal year, of the amount, as determined by the Federal Minister, by which
(i) the aggregate of the fiscal equalization payment that may be paid to Her Majesty in right of the Province under Part I of the Fiscal Arrangements Act for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with paragraph (a) for the fiscal year immediately preceding the fiscal year
is greater than
(ii) the aggregate of the fiscal equalization payment that may be paid to Her Majesty in right of the Province under Part I of the Fiscal Arrangements Act for the fiscal year and the amount computed in accordance with paragraph (a) for the fiscal year.
PART 3GENERAL — PAYMENTS TO CERTAIN ENTITIES
Payments to a Trust
Marginal note:Payments to trust — immunization and public health
7. (1) The Minister of Finance may make direct payments, in an aggregate amount of not more than four hundred million dollars, to a trust established to provide the provinces with funding for the purposes of supporting a national immunization strategy and assisting in the enhancement of their public health capacities.
Marginal note:Provincial share
(2) The amount that may be provided to a province under this section is to be determined in accordance with the terms of the trust indenture establishing the trust referred to in subsection (1).
Marginal note:Payments out of C.R.F.
(3) Any amount payable under this section may be paid by the Minister of Finance out of the Consolidated Revenue Fund at the times and in the manner that the Minister of Finance considers appropriate.
Payments to Nova Scotia
Marginal note:Payment for 2004–2005
8. (1) For the fiscal year beginning on April 1, 2004, the Minister of Finance may make a cash payment to the Province of Nova Scotia in an amount equal to the aggregate of twentyone million dollars and an amount equal to 20 per cent of the Province's offshore minerals revenue for that fiscal year included in the description set out in paragraph (z.5) of the definition “revenue source” in subsection 4(2) of the FederalProvincial Fiscal Arrangements Act.
Marginal note:Payment for 2005–2006
(2) For the fiscal year beginning on April 1, 2005, the Minister of Finance may make a cash payment to the Province of Nova Scotia in an amount equal to 10 per cent of the Province's offshore minerals revenue for that fiscal year included in the description set out in paragraph (z.5) of the definition “revenue source” in subsection 4(2) of the FederalProvincial Fiscal Arrangements Act.
Marginal note:Determination of offshore minerals revenue
(3) The offshore minerals revenue of the Province of Nova Scotia for each of the fiscal years referred to in subsections (1) and (2) shall be determined by the Minister of Finance after the end of that fiscal year at the time of the final computation of the amount, if any, of the fiscal equalization payment that is payable to the Province for that fiscal year under Part I of the FederalProvincial Fiscal Arrangements Act.
Marginal note:Payment out of C.R.F.
(4) Any amount payable under subsection (1) or (2) may be paid by the Minister of Finance out of the Consolidated Revenue Fund at the time and in the manner that the Minister of Finance considers appropriate.
Payment to Saskatchewan
Marginal note:Payment of $120,000,000
9. (1) The Minister of Finance may make a cash payment of one hundred and twenty million dollars to the Province of Saskatchewan.
Marginal note:Payment out of C.R.F.
(2) Any amount payable under subsection (1) may be paid by the Minister of Finance out of the Consolidated Revenue Fund at the time and in the manner that the Minister of Finance considers appropriate.
Appropriations for Grants
Canada Foundation for Sustainable Development Technology
Marginal note:$200,000,000 granted
10. From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of the Environment and the Minister of Natural Resources, be paid and applied a sum not exceeding two hundred million dollars for payment to the Canada Foundation for Sustainable Development Technology for its use.
Canada Health Infoway Inc.
Marginal note:$100,000,000 granted
11. From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of Health, be paid and applied a sum not exceeding one hundred million dollars for payment to the Canada Health Infoway Inc. for its use.
Amendments to the Canada Foundation for Sustainable Development Technology Act
Marginal note:2001, c. 23
12. The definition “eligible project” in section 2 of the Canada Foundation for Sustainable Development Technology Act is replaced by the following:
“eligible project”
« travaux admissibles »
“eligible project” means a project carried on, or to be carried on, primarily in Canada by an eligible recipient to develop and demonstrate new technologies to promote sustainable development, including technologies to address issues related to climate change and the quality of air, water and soil.
13. Subparagraph 11(a)(i) of the Act is replaced by the following:
(i) persons engaged in the development and demonstration of technologies to promote sustainable development, including technologies to address issues related to climate change and the quality of air, water and soil,
14. Subparagraph 15(a)(i) of the Act is replaced by the following:
(i) persons engaged in the development and demonstration of technologies to promote sustainable development, including technologies to address issues related to climate change and the quality of air, water and soil,
PART 4AMENDMENTS TO THE CANADA PENSION PLAN
R.S., c. C8Canada Pension Plan
15. Section 9 of the Canada Pension Plan is renumbered as subsection 9(1) and is amended by adding the following:
Marginal note:Succession of employers
(2) If, in a year after 2003, one employer immediately succeeds another as the employer of an employee as a result of the formation or dissolution of a corporation or the acquisition — with the agreement of the former employer or by operation of law — of all or part of a business of the former employer, the successor employer may, for the application of subsections (1) and 8(1) and section 21, take into account the amounts paid, deducted, remitted or contributed under this Act by the former employer in respect of the year in relation to the employment of the employee as if they had been paid, deducted, remitted or contributed by the successor employer. If the employer takes those amounts into account with respect to the employer's contributions, the employer shall also take them into account with respect to the employee's contributions.
Marginal note:Selfemployment succeeded by employment
(3) For the application of subsections (1) and 8(1) and section 21, if a person, in a year after 2003, is selfemployed, ceases to be selfemployed and becomes an employee of a corporation controlled by the person, the corporation may
(a) take into account the amount of contributory selfemployed earnings of the person in the year as contributory salary and wages paid by the corporation to the employee in that year; and
(b) take into account one half of the contributions by the person in respect of selfemployed earnings in the year as an amount deducted, remitted or contributed in relation to employee's contributions for that year, and one half of that amount as an amount remitted or contributed in relation to employer's contributions for that year.
16. Section 10 of the Act is renumbered as subsection 10(1) and is amended by adding the following:
Marginal note:Employment succeeded by selfemployment
(2) For the purpose of subsection (1), if a person, in a year after 2003, is an employee of a corporation controlled by the person, ceases to be employed by that corporation and becomes selfemployed, the person may
(a) take into account the amount of contributory salary and wages paid by the corporation to the employee in the year as contributory selfemployed earnings of the person in the year; and
(b) take into account the amounts deducted, remitted or contributed by the corporation in relation to the employee's contributions and the employer's contributions in respect of the person for the year as contributions by the person in respect of selfemployment earnings in that year.
Marginal note:2001, c. 17, s. 254(1)
17. The portion of subsection 12(1) of the English version of the Act before paragraph (a) is replaced by the following:
Marginal note:Amount of contributory salary and wages
12. (1) The amount of the contributory salary and wages of a person for a year is the person's income for the year from pensionable employment, computed in accordance with the Income Tax Act (read without reference to subsection 7(8) of that Act), plus any deductions for the year made in computing that income otherwise than under paragraph 8(1)(c) of that Act, but does not include any such income received by the person
18. (1) Subsection 38(3) of the Act is replaced by the following:
Marginal note:Refund of amount deducted in excess of required amount — employee
(3) Despite anything in this Part, if an employee applies to the Minister and satisfies the Minister that, for any year, the amount deducted from the employee's remuneration exceeds the contribution for the year required of the employee under subsection 8(1), the Minister may refund the amount of the excess. The application must be made within four years after the end of the year.
Marginal note:Refund of amount remitted in excess of required amount — employer
(3.1) Subject to subsection (3.2) but despite any other provision of this Part, if an employer applies to the Minister and satisfies the Minister that, for any year, the amount remitted by the employer as employer's contributions with respect to an employee exceeds the contribution for the year required of the employer under section 9 with respect to the employee, the Minister may refund the amount of the excess. The application must be made within four years after the end of the year.
Marginal note:No refund of employers' contributions
(3.2) No refund may be made of any contribution required to be made as an employer's contribution under section 9.
(2) Subsection (1) is deemed to have come into force on March 18, 2003.
19. Subsection 40(1) of the Act is amended by adding the following after paragraph (f):
(f.1) providing for the right of a person to whom a provision of this Act applies or extends by virtue of a regulation made under paragraph (f) to recover from the employer any amounts that the person becomes liable to pay by virtue of that regulation;
20. The Act is amended by adding the following after section 70:
Marginal note:Reinstatement of disability pension
70.1 (1) Subject to this section, a person who has ceased to receive a disability pension because they have returned to work is entitled to have that disability pension reinstated if, within two years after the month in which they ceased to receive the disability pension, they become incapable again of working.
Marginal note:Request for reinstatement
(2) A request by a person for reinstatement of a disability pension shall be made to the Minister in accordance with the regulations. Subsections 60(2), (4), (5) and (8) to (12) apply to the request, with any modifications that the circumstances require.
Marginal note:Consideration and approval of request by Minister
(3) The Minister shall approve a request made by a person under subsection (2) if the Minister is satisfied that
(a) the person has a severe and prolonged mental or physical disability that is the same as, or is related to, the disability that entitled the person to receive the disability pension that is the subject of the request;
(b) not more than two years have elapsed from the month in which the person ceased to receive the disability pension to the month when they became incapable again of working; and
(c) the person had not reached sixtyfive years of age and was not receiving a retirement pension in the month in which they became incapable again of working.
Marginal note:Reinstatement of disabled contributor's child benefit
(4) On reinstatement of a disability pension under subsection (3), the Minister shall approve the reinstatement of a disabled contributor's child benefit that had been payable to the child of the person whose disability pension is reinstated if the Minister is satisfied that the child meets the requirements under this Act for payment of a disabled contributor's child benefit.
Marginal note:Notification of decision — disability pension
(5) The Minister shall in writing inform a person who makes a request for reinstatement of a disability pension of the Minister's decision whether or not to approve the request.
Marginal note:Notification of decision — disabled contributor's child benefit
(6) The Minister shall in writing inform a person who has made a request for reinstatement of a disability pension, a child of that person or, in relation to that child, a person or agency referred to in section 75 of the Minister's decision whether or not to approve a disabled contributor's child benefit.
Marginal note:Application of provisions — disability pension
(7) The provisions of this Act that apply to a disability pension, except paragraphs 42(2)(b), 44(1)(b) and 44(2)(a) and section 69, apply to a disability pension that is reinstated under this section, with any modifications that the circumstances require.
Marginal note:Application of provisions — disabled contributor's child benefit
(8) The provisions of this Act that apply to a disabled contributor's child benefit, except paragraphs 44(1)(e) and 44(2)(a) and subsection 74(2), apply to a disabled contributor's child benefit that is reinstated under this section, with such modifications as the circumstances require.
Marginal note:Amount of disability pension and survivor's pension
(9) Despite subsection (7) and subject to any division of unadjusted pensionable earnings under sections 55 to 55.3, the basic monthly amount of a disability pension that is reinstated, and the monthly amount of any survivor's pension under this Act that is payable to the person whose disability pension is reinstated, shall not be less than the amount that was payable for the month immediately preceding the month in which the pension ceased to be payable, adjusted annually in accordance with subsection 45(2).
Marginal note:Commencement of payments
(10) A disability pension or a contributor's child benefit that is reinstated pursuant to a request under this section is payable commencing with the month following the month in which the person who made the request under this section became incapable again of working.
21. Subsection 81(1) of the Act is amended by striking out the word “or” at the end of paragraph (c), by adding the word “or” at the end of paragraph (d) and by adding the following after paragraph (d):
(e) a person who made a request under section 70.1, a child of that person or, in relation to that child, a person or agency referred to in section 75 is dissatisfied with any decision made under section 70.1,
22. Subsection 89(1) of the Act is amended by adding the following after paragraph (b):
(b.1) prescribing the time and manner for making requests for reinstatement of a disability pension under section 70.1, and the information and evidence to be furnished in connection with requests;
(b.2) prescribing the information and evidence to be furnished in connection with the reinstatement of disabled contributor's child benefits under section 70.1;
Transitional
Marginal note:Application
23. Section 70.1 of the Canada Pension Plan, as enacted by section 20 of this Act, does not apply in respect of persons who, before the coming into force of section 20 of this Act, have ceased to receive a disability pension because they have returned to work.
Coming into Force
Marginal note:Subsection 114(2) of the Canada Pension Plan does not apply
24. (1) Subsection 114(2) of the Canada Pension Plan does not apply in respect of the amendments to that Act contained in this Part.
Marginal note:Order
(2) This Part comes into force, in accord¡ance with subsection 114(4) of the Canada Pension Plan, on a day to be fixed by order of the Governor in Council.
PART 51996, c. 23AMENDMENTS TO THE EMPLOYMENT INSURANCE ACT
25. The Employment Insurance Act is amended by adding the following after section 66.2:
Marginal note:Premium rate for 2005
66.3 Notwithstanding section 66, the premium rate for the year 2005 is the rate set for the year by the Governor in Council on the recommendation of the Minister and the Minister of Finance.
Marginal note:2003, c. 15, s. 21
26. Section 67 of the Act is replaced by the following:
Marginal note:Employee's premium
67. Subject to section 70, a person employed in insurable employment shall pay, by deduction as provided in subsection 82(1), a premium equal to their insurable earnings multiplied by the premium rate set under section 66, 66.1, 66.2 or 66.3, as the case may be.
27. The Act is amended by adding the following after section 82:
Marginal note:Succession of employers
82.1 If, in a year after 2003, one employer immediately succeeds another as the employer of an employee as a result of the formation or dissolution of a corporation or the acquisition — with the agreement of the former employer or by operation of law — of all or part of an undertaking or business of the former employer, the successor employer may, for the application of section 82, take into account the amounts deducted, remitted or paid under this Act by the former employer in respect of the year in relation to the employment of the employee as if they had been deducted, remitted or paid by the successor employer. If the employer takes those amounts into account with respect to the employer's premium, the employer shall also take them into account with respect to the employee's premium.
PART 61993, c. 14; 2001, c. 22, s. 2AMENDMENT TO THE FARM CREDIT CANADA ACT
Marginal note:2003, c. 15, s. 42
28. Subsection 11(1) of the Farm Credit Canada Act is replaced by the following:
Marginal note:Capital payments
11. (1) At the request of the Corporation, the Minister of Finance may, with the approval of the Governor in Council, pay to the Corporation, out of the Consolidated Revenue Fund, amounts not exceeding in the aggregate one billion, two hundred and fifty million dollars, or such greater aggregate amount as may be authorized from time to time under an appropriation Act.
PART 7GOODS AND SERVICES TAX AND HARMONIZED SALES TAX REBATE FOR MUNICIPALITIES
R.S., c. E15Excise Tax Act
29. (1) Subsection 123(1) of the Excise Tax Act is amended by adding the following in alphabetical order:
“designated municipal property”
« bien municipal désigné »
“designated municipal property” means property
(a) that is property of a person who is at any time designated to be a municipality for the purposes of section 259,
(b) that the person intended at that time to consume, use or supply in the course of activities specified in the designation and otherwise than exclusively in the course of activities that are not activities specified in the designation, and
(c) in respect of which, or in respect of an improvement to which, an amount included in “the total tax charged in respect of the property or service” under paragraph (a) of the definition “noncreditable tax charged” in subsection 259(1) is
(i) an amount of tax in respect of a supply made to, or the importation or bringing into a participating province of the property or an improvement to it by, the person at that time,
(ii) an amount deemed to have been paid or collected at that time by the person,
(iii) an amount required to be added under subsection 129(7) in determining the person's net tax as a result of a branch or division of the person becoming a small supplier division at that time, or
(iv) an amount required to be added under paragraph 171(4)(b) in determining the person's net tax as a result of the person ceasing at that time to be a registrant;
(2) Subsection (1) is deemed to have come into force on February 1, 2004.
30. (1) The Act is amended by adding the following after section 141. 1:
Marginal note:Sale of personal property of a municipality
141.2 (1) Despite section 141.1, for the purposes of this Part, a supply (other than an exempt supply) made by way of sale of personal property of a municipality is deemed to have been made in the course of its commercial activities.
Marginal note:Sale of personal property of a designated municipality
(2) Despite section 141.1, for the purposes of this Part, a supply (other than an exempt supply) made by way of sale of personal property of a person designated to be a municipality for the purposes of section 259 is deemed to have been made in the course of its commercial activities if the property is designated municipal property of the person.
(2) Subsection (1) applies to any supply for which consideration becomes due after March 9, 2004 or is paid after that day without having become due, but does not apply to any supply made under an agreement in writing entered into before March 10, 2004.
Marginal note:1990, c. 45, s. 12(1)
31. (1) Section 166 of the Act is replaced by the following:
Marginal note:Supply by small supplier not a registrant
166. If a person makes a taxable supply and the consideration or a part of it for the supply becomes due, or is paid before it becomes due, at a time when the person is a small supplier who is not a registrant, that consideration or part, as the case may be, shall not be included in calculating the tax payable in respect of the supply except if the supply is
(a) a supply by way of sale of real property;
(b) a supply by way of sale of personal property by a municipality that is capital property of the municipality; or
(c) a supply by way of sale of designated municipal property of a person designated to be a municipality for the purposes of section 259 that is capital property of the person.
(2) Subsection (1) applies to any supply for which consideration becomes due after March 9, 2004 or is paid after that day without having become due, but does not apply to any supply made under an agreement in writing entered into before March 10, 2004.
32. (1) The Act is amended by adding the following after section 198:
Marginal note:Basic tax content of property of a municipality
198.1 (1) In the case of property of a municipality that is not a listed financial institution, the basic tax content of the property at any time after January 30, 2004 shall be determined by applying the following rules:
(a) in determining the value of A in paragraph (a) of the definition “basic tax content” in subsection 123(1), an amount of tax described by any of subparagraphs (i) to (v) of the description of A may be included only if the tax
(i) became payable, or would have become payable in the absence of the circumstances described in subparagraph (iii) or (iv) of that description, after January 2004 under subsection 165(1) or section 212 or 218 in respect of the property, or
(ii) was payable, or would have been payable in the absence of the circumstances described in subparagraph (iii) or (iv) of that description, under subsection 165(2), 212.1(2) or 218.1(1) or Division IV.1 in respect of the property;
(b) in determining the value of B in paragraph (a) of the definition “basic tax content” in subsection 123(1), any reference in the description of B to tax referred to in a subparagraph of the description of A shall be read to include an amount of tax only if the tax is included in the determination of the value of A in accordance with paragraph (a) of this subsection;
(c) in determining the value of J in paragraph (b) of the definition “basic tax content” in subsection 123(1),
(i) paragraphs (a) and (b) of this subsection shall be applied in determining the basic tax content referred to in subparagraph (i) of the description of J, and
(ii) an amount of tax described by any of subparagraphs (iii) to (vi) of the description of J may be included only if the tax
(A) became payable, or would have become payable in the absence of the circumstances described in subparagraph (iv) or (v) of that description, after January 2004 under subsection 165(1) or section 212 or 218 in respect of the improvements to the property, or
(B) was payable, or would have been payable in the absence of the circumstances described in subparagraph (iv) or (v) of that description, under subsection 165(2), 212.1(2) or 218.1(1) or Division IV.1 in respect of improvements to the property; and
(d) in determining the value of K in paragraph (b) of the definition “basic tax content” in subsection 123(1), any reference in the description of K to tax referred to in a subparagraph of the description of J shall be read to include an amount of tax only if the tax is included in the determination of the value of J in accordance with paragraph (c) of this subsection.
Marginal note:Application to designated municipality
(2) In subsection (1), “municipality” includes a person designated to be a municipality for the purposes of section 259 and, in the case of a person so designated, “property” means property that, on January 31, 2004, was property of the person and was consumed, used or supplied by the person otherwise than exclusively in the course of activities that are not activities specified in the designation.
(2) Subsection (1) is deemed to have come into force on January 31, 2004.
Marginal note:2000, c. 30, s. 42(1)
33. (1) Subsection 200(3) of the Act is replaced by the following:
Marginal note:Sale of personal property
(3) Despite paragraph 141.1(1)(a) but subject to section 141.2, for the purposes of this Part, if a registrant (other than a government) makes a supply by way of sale of personal property that is capital property of the registrant and, before the earlier of the time that ownership of the property is transferred to the recipient and the time that possession of the property is transferred to the recipient under the agreement for the supply, the registrant was last using the property otherwise than primarily in commercial activities of the registrant, the supply is deemed to have been made in the course of activities of the registrant that are not commercial activities.
Marginal note:2000, c. 30, s. 42(1)
(2) The portion of subsection 200(4) of the Act before paragraph (a) is replaced by the following:
Marginal note:Sale of personal property of a government
(4) Despite subsection 141.1(1) but subject to section 141.2, for the purposes of this Part, if a supplier that is a government makes a supply by way of sale of particular personal property that is capital property of the supplier,
(3) Subsections (1) and (2) apply to any supply for which consideration becomes due after March 9, 2004 or is paid after that day without having become due, but do not apply to any supply made under an agreement in writing entered into before March 10, 2004.
34. (1) The Act is amended by adding the following after section 200:
Marginal note:Credit on sale of personal property of a municipality
200.1 If a registrant is a municipality or a person designated to be a municipality for the purposes of section 259, subsection 193(2) applies, with any modifications that the circumstances require, to personal property (other than a passenger vehicle, an aircraft of a registrant who is an individual or a partnership and property of a person designated to be a municipality for the purposes of section 259 that is not designated municipal property of the person) acquired or imported by the registrant for use as capital property of the registrant as if the personal property were real property.
(2) Subsection (1) applies to any supply for which consideration becomes due after March 9, 2004 or is paid after that day without having become due, but does not apply to any supply made under an agreement in writing entered into before March 10, 2004.
Marginal note:1997, c. 10, s. 191(1)
35. (1) The description of B in paragraph 201(b) of the Act is replaced by the following:
- B
- is
(i) if the registrant is deemed under subsection 199(3) or 206(2) or (3) to have acquired the vehicle or a portion of it at the particular time, or the registrant is bringing the vehicle into a participating province at the particular time, and the registrant was previously entitled to claim a rebate under section 259 in respect of the vehicle or any improvement to it, the difference between 100% and the specified percentage (within the meaning of that section) that applied in determining the amount of that rebate, and
(ii) in any other case, 100%; and
(2) Subsection (1) applies for the purpose of determining an input tax credit of a registrant in respect of a passenger vehicle that the registrant acquires, imports or brings into a participating province after January 2004.
Marginal note:1997, c. 10, s. 193(1)
36. (1) The portion of subsection 203(1) of the Act before the formula is replaced by the following:
Marginal note:Sale of passenger vehicle
203. (1) If a registrant (other than a municipality), at a particular time in a reporting period of the registrant, makes a taxable supply by way of sale of a passenger vehicle (other than a vehicle that is designated municipal property of a person designated at the particular time to be a municipality for the purposes of section 259) that, immediately before the particular time, was used as capital property in commercial activities of the registrant, the registrant may, despite section 170, paragraph 199(2)(a) and subsections 199(4) and 202(1), claim an input tax credit for that period equal to the amount determined by the formula
Marginal note:1993, c. 27, s. 70(4)
(2) Subsection 203(3) of the Act is replaced by the following:
Marginal note:Sale of passenger vehicle, etc.
(3) Despite paragraph 141.1(1)(a), for the purposes of this Part, a supply shall be deemed not to be a taxable supply if
(a) an individual or a partnership (other than a municipality) who is a registrant makes, at a particular time, the supply by way of sale of a passenger vehicle or an aircraft (other than a vehicle or an aircraft that is designated municipal property of a person designated at the particular time to be a municipality for the purposes of section 259) that is capital property of the registrant; and
(b) at any time after the individual or partnership became a registrant and before the particular time, the registrant did not use the vehicle or aircraft exclusively in commercial activities of the registrant.
Marginal note:Sale of passenger vehicle by a municipality
(4) If a registrant (other than an individual or a partnership) that is a municipality or a person designated to be a municipality for the purposes of section 259, at a particular time in a reporting period of the registrant, makes a taxable supply by way of sale of a passenger vehicle (other than a vehicle of a person designated to be a municipality for the purposes of section 259 that is not designated municipal property of the person) that, immediately before the particular time, was capital property of the registrant, the registrant may, despite section 170, paragraph 199(2)(a) and subsections 199(4) and 202(1), claim an input tax credit for that period equal to the lesser of
(a) the amount determined by the formula
A x (B — C)/B
where
- A
- is the basic tax content of the vehicle at the particular time,
- B
- is the total of
(i) the tax that was payable by the registrant in respect of the last acquisition or importation of the vehicle by the registrant,
(ii) if the registrant brought the vehicle into a participating province after it was last acquired or imported by the registrant, the tax that was payable by the registrant in respect of bringing it into that province, and
(iii) the tax that was payable by the registrant in respect of improvements to the vehicle acquired, imported or brought into a participating province by the registrant after the property was last acquired or imported, and
- C
- is the total of all input tax credits that the registrant was entitled to claim in respect of any tax included in the total for B, and
(b) the tax that is or would, in the absence of section 167, be payable in respect of the taxable supply.
(3) Subsections (1) and (2) apply to any supply for which consideration becomes due after March 9, 2004 or is paid after that day without having become due, but do not apply to any supply made under an agreement in writing entered into before March 10, 2004.
Marginal note:2000, c. 30, s. 43(1)
37. (1) Subsections 209(1) and (2) of the Act are replaced by the following:
Marginal note:Real property of certain public service bodies
209. (1) If a registrant (other than a financial institution or a government) is a public service body, section 141.2 and subsections 199(2) to (4) and 200(2) and (3) apply, with any modifications that the circumstances require, to real property acquired by the registrant for use as capital property of the registrant or, in the case of subsection 199(4), to improvements to real property that is capital property of the registrant, as if the real property were personal property.
Marginal note:Real property of certain Crown agents
(2) If a registrant (other than a financial institution) is a specified Crown agent, section 141.2 and subsections 199(2) to (4) and 200(2) and (4) apply, with any modifications that the circumstances require, to real property acquired by the registrant for use as capital property of the registrant or, in the case of subsection 199(4), to improvements to real property that is capital property of the registrant, as if the real property were personal property.
Marginal note:2000, c. 30, s. 43(1)
(2) The portion of subsection 209(3) of the Act before paragraph (a) is replaced by the following:
Marginal note:Exception
(3) Despite subsections (1) and (2), section 141.2 and subsections 200(3) and (4) do not apply to
(3) Subsections (1) and (2) are deemed to have come into force on February 1, 2004.
38. (1) The Act is amended by adding the following after section 257:
Marginal note:Sale of personal property by nonregistrant municipality
257.1 (1) If a person that is a municipality, or is designated to be a municipality for the purposes of section 259, and that is not a registrant makes, at any time, a taxable supply by way of sale of personal property that is capital property of the person (other than property of a person designated to be a municipality for the purposes of section 259 that is not designated municipal property of the person), the Minister shall, subject to subsection (2), pay a rebate to the person equal to the lesser of
(a) the basic tax content of the property at that time, and
(b) the tax that is or would, in the absence of section 167, be payable in respect of the taxable supply.
Marginal note:Application for rebate
(2) A rebate shall not be paid to a person under subsection (1) unless the person files an application for the rebate within two years after the day on which the consideration for the supply became due or was paid without having become due.
Marginal note:Redemption of personal property
(3) If, for the purposes of satisfying in whole or in part a debt or obligation owing by a person (in this subsection referred to as the “debtor”), a creditor exercises a right under an Act of Parliament or the legislature of a province or an agreement relating to a debt security to cause the supply of personal property and the debtor has a right to redeem the property under the Act or the agreement, the following rules apply:
(a) the debtor is not entitled to claim a rebate under subsection (1) with respect to the property unless the time limit for redeeming the property has expired and the debtor has not redeemed the property; and
(b) if the debtor is entitled to claim the rebate, consideration for the supply is deemed, for the purposes of subsection (2), to have become due on the day on which the time limit for redeeming the property expires.
(2) Subsection (1) applies to any supply for which consideration becomes due after March 9, 2004 or is paid after that day without having become due, but does not apply to any supply made under an agreement in writing entered into before March 10, 2004.
39. (1) Subsection 259(1) of the Act is amended by adding the following in alphabetical order:
“specified percentage”
« pourcentage établi »
“specified percentage” means
(a) in the case of a charity or a qualifying nonprofit organization that is not a selected public service body, 50%,
(b) in the case of a hospital authority, 83%,
(c) in the case of a school authority, 68%,
(d) in the case of a university or public college, 67%, and
(e) in the case of a municipality, 100%;
“specified provincial percentage”
« pourcentage provincial établi »
“specified provincial percentage” means
(a) in the case of a charity, or a qualifying nonprofit organization, that is not a selected public service body and that is resident in a participating province, 50%,
(b) in the case of a hospital authority resident in Nova Scotia, 83%,
(c) in the case of a school authority resident in Nova Scotia, 68%,
(d) in the case of a university or public college resident in Nova Scotia, 67%,
(e) in the case of a municipality resident in Nova Scotia or New Brunswick, 57.14%, and
(f) in any other case, 0%.
Marginal note:1997, c. 10, s. 227(2) and (3)
(2) Subsections 259(3) and (4) of the Act are replaced by the following:
Marginal note:Rebate for persons other than designated municipalities
(3) If a person (other than a listed financial institution, a registrant prescribed for the purposes of subsection 188(5) and a person designated to be a municipality for the purposes of this section) is, on the last day of a claim period of the person or of the person's fiscal year that includes that claim period, a selected public service body, charity or qualifying nonprofit organization, the Minister shall, subject to subsections (4.1) to (4.21) and (5), pay a rebate to the person equal to the total of
(a) the amount equal to the specified percentage of the noncreditable tax charged in respect of property or a service (other than a prescribed property or service) for the claim period, and
(b) the amount equal to the specified provincial percentage of the noncreditable tax charged in respect of property or a service (other than a prescribed property or service) for the claim period.
Marginal note:Rebate for designated municipalities
(4) If a person is, on the last day of a claim period of the person or of the person's fiscal year that includes that claim period, designated to be a municipality for the purposes of this section in respect of activities (in this subsection referred to as the “designated activities”) specified in the designation, the Minister shall, subject to subsections (4.01) to (5), pay a rebate to the person in respect of property or a service (other than a prescribed property or service) equal to the total of
(a) all amounts, each of which is an amount determined by the formula
A x B x C
where
- A
- is the specified percentage,
- B
- is an amount that is included in the total tax charged in respect of the property or service for the claim period and is an amount of tax in respect of a supply made to, or the importation or bringing into a participating province of the property by, the person at any time, an amount deemed to have been paid or collected at any time by the person, an amount required to be added under subsection 129(7) in determining the person's net tax as a result of a branch or division of the person becoming a small supplier division at any time, or an amount required to be added under paragraph 171(4)(b) in determining the person's net tax as a result of the person ceasing, at any time, to be a registrant, and
- C
- is the extent (expressed as a percentage) to which the person intended, at that time, to consume, use or supply the property or service in the course of the designated activities, and
(b) all amounts, each of which is an amount determined by the formula
D x E x F
where
- D
- is the specified provincial percentage,
- E
- is an amount that is included in the total tax charged in respect of the property or service for the claim period and is an amount of tax in respect of a supply made to, or the importation or bringing into a participating province of the property by, the person at any time, an amount deemed to have been paid or collected at any time by the person, an amount required to be added under subsection 129(7) in determining the person's net tax as a result of a branch or division of the person becoming a small supplier division at any time, or an amount required to be added under paragraph 171(4)(b) in determining the person's net tax as a result of the person ceasing, at any time, to be a registrant, and
- F
- is the extent (expressed as a percentage) to which the person intended, at that time, to consume, use or supply the property or service in the course of the designated activities.
Marginal note:2000, c. 30, s. 76(2)
(3) The portion of subsection 259(4.01) of the Act before paragraph (a) is replaced by the following:
Marginal note:Restriction
(4.01) An amount shall not be included in determining the value of B or E in subsection (4) in respect of a claim period of a person to the extent that
Marginal note:1997, c. 10, ss. 69(7) and 227(4) and (5); 2000, c. 30, ss. 76(3) to (5)
(4) Subsections 259(4.1) to (4.21) of the Act are replaced by the following:
Marginal note:Apportionment of rebate
(4.1) Subject to subsections (4.2) and (4.21), if a person is a charity, a public institution or a qualifying nonprofit organization, and is a selected public service body, the rebate, if any, payable to the person under subsection (3) or (4) in respect of property or a service for a claim period is equal to the total of
(a) 50% of the noncreditable tax charged in respect of the property or service for the claim period, and
(b) the total of all amounts, each of which is an amount that would be determined under paragraph (4)(a) or (b) in respect of the property or service for the claim period if subsection (4) applied to the person and if
(i) the reference in subsection (4) to “specified percentage” were read as a reference to “the specified percentage applicable to a selected public service body described in whichever of paragraphs (a) to (e) of the definition of that expression in subsection (1) applies to the person minus 50%”,
(ii) the reference in subsection (4) to “specified provincial percentage” were read as a reference to the greater of “the specified provincial percentage applicable to a selected public service body described in whichever of paragraphs (a) to (e) of the definition of that expression in subsection (1) applies to the person minus 50%” and “0%”, and
(iii) in the case of a person who is not designated to be a municipality for the purposes of this section, the reference in the description of — or F in subsection (4) to “designated activities” were read as a reference to
(A) in the case of a person determined to be a municipality under paragraph (b) of the definition “municipality” in subsection 123(1), activities engaged in by the person in the course of fulfilling the person's responsibilities as a local authority, and
(B) in any other case, activities engaged in by the person in the course of operating a recognized degreegranting institution, a college affiliated with, or research body of, such an institution, a public hospital, an elementary or secondary school or a postsecondary college or technical institute, as the case may be.
Marginal note:Exclusions
(4.2) In determining an amount under paragraphs (3)(a) and (4)(a) for the purpose of determining a rebate payable to a person, no tax under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1 payable or deemed to have been paid or collected by the person shall be included
(a) in any amount referred to in any of subparagraphs (a)(i) to (iv) of the definition “noncreditable tax charged” in subsection (1);
(b) in any amount referred to in subparagraph (a)(v) of that definition that is required under subsection 129(7) to be added in determining the person's net tax; or
(c) in determining any amount referred to in subparagraph (a)(v) of that definition that is an input tax credit required under paragraph 171(4)(b) to be added in determining the person's net tax.
Marginal note:Exclusions
(4.21) In determining an amount under paragraphs (3)(b) and (4)(b) for the purpose of determining a rebate payable to a person, no tax under any of subsection 165(1) and sections 212 and 218 payable or deemed to have been paid or collected by the person shall be included
(a) in any amount referred to in any of subparagraphs (a)(i) to (iv) of the definition “noncreditable tax charged” in subsection (1);
(b) in any amount referred to in subparagraph (a)(v) of that definition that is required under subsection 129(7) to be added in determining the person's net tax; or
(c) in determining any amount referred to in subparagraph (a)(v) of that definition that is an input tax credit required under paragraph 171(4)(b) to be added in determining the person's net tax.
Marginal note:2000, c. 30, s. 76(6)
(5) Paragraph 259(4.3)(e) of the Act is replaced by the following:
(e) the total of all amounts each of which is an amount that would be determined under paragraph (4)(a) or (b) in respect of the property or service for the claim period if
(i) the specified percentage for the purposes of subsection (4) were 0%,
(ii) the specified provincial percentage for the purposes of that subsection were 50%, and
(iii) the reference to designated activities in the description of F in that subsection were a reference to the person's other activities.
Marginal note:1993, c. 27, s. 115(3)
(6) Subsection 259(9) of the Act is repealed.
(7) Section 259 of the Act is amended by adding the following after subsection (12):
Marginal note:Disclosure of municipal rebate information
(13) If the amount of a rebate under subsection (3) or (4) that is approved by the Minister for payment to a municipality is increased as a result of the application to the municipality of the specified percentage instead of 57.14% in respect of any period, the Minister may, despite section 295, release for publication by the Government of Canada information as to the amount of the increase and any information necessary to identify the municipality. On publication, the information is not confidential information for the purposes of section 295.
(8) Subsections (1) to (5) apply for the purposes of determining a rebate under section 259 of the Act of a person for claim periods ending on or after February 1, 2004, except that the rebate shall be determined as if those subsections did not come into force for the purposes of determining a rebate of a person for the claim period of the person that includes that day in respect of
(a) an amount of tax that became payable by the person before that day;
(b) an amount that is deemed to have been paid or collected by the person before that day; or
(c) an amount that is required to be added in determining the person's net tax
(i) as a result of a branch or division of the person becoming a small supplier division before that day, or
(ii) as a result of the person ceasing before that day to be a registrant.
(9) Subsection (6) is deemed to have come into force on February 1, 2004.
40. (1) Section 1 of Part V.1 of Schedule V to the Act is amended by striking out the word “or” at the end of paragraph (l), by adding the word “or” at the end of paragraph (m) and by adding the following after paragraph (m):
(n) designated municipal property, if the charity is a person designated to be a municipality for the purposes of section 259 of the Act.
(2) Subsection (1) applies to any supply for which consideration becomes due after March 9, 2004 or is paid after that day without having become due, but does not apply to any supply made under an agreement in writing entered into before March 10, 2004.
Marginal note:1997, c. 10, s. 102(1)
41. (1) The portion of section 5.1 of Part V.1 of Schedule V to the Act before paragraph (a) is replaced by the following:
5.1 A supply by way of sale made by a charity to a recipient of tangible personal property (other than capital property of the charity or, if the charity is a person designated to be a municipality for the purposes of section 259 of the Act, designated municipal property), or of a service purchased by the charity for the purpose of making a supply by way of sale of the service, if the total charge for the supply is the usual charge by the charity for such supplies to such recipients and
(2) Subsection (1) applies to any supply for which consideration becomes due after March 9, 2004 or is paid after that day without having become due, but does not apply to any supply made under an agreement in writing entered into before March 10, 2004.
42. (1) Section 2 of Part VI of Schedule V to the Act is amended by striking out the word “or” at the end of paragraph (l) and by adding the following after paragraph (m):
(n) property or a service made by a municipality; or
(o) designated municipal property, if the public institution is a person designated to be a municipality for the purposes of section 259 of the Act.
(2) Subsection (1) applies to any supply for which consideration becomes due after March 9, 2004 or is paid after that day without having become due, but does not apply to any supply made under an agreement in writing entered into before March 10, 2004.
Marginal note:1997, c. 10, s. 108(1)
43. (1) The portion of section 6 of Part VI of Schedule V to the Act before paragraph (a) is replaced by the following:
6. A supply by way of sale made by a public service body (other than a municipality) to a recipient of tangible personal property (other than capital property of the body or, if the body is a person designated to be a municipality for the purposes of section 259 of the Act, designated municipal property), or of a service purchased by the body for the purpose of making a supply by way of sale of the service, if the total charge for the supply is the usual charge by the body for such supplies to such recipients and
(2) Subsection (1) applies to any supply for which consideration becomes due after March 9, 2004 or is paid after that day without having become due, but does not apply to any supply made under an agreement in writing entered into before March 10, 2004.
Marginal note:1990, c. 45, s. 18
44. (1) The portion of section 25 of Part VI of Schedule V to the Act before paragraph (a) is replaced by the following:
25. A supply of real property made by a public service body (other than a financial institution, a municipality or a government), but not including a supply of
(2) Section 25 of Part VI of Schedule V to the Act is amended by striking out the word “or” at the end of paragraph (h), by adding the word “or” at the end of paragraph (i) and by adding the following after paragraph (i):
(j) designated municipal property, if the body is a person designated to be a municipality for the purposes of section 259 of the Act.
(3) Subsections (1) and (2) apply to any supply for which consideration becomes due after March 9, 2004 or is paid after that day without having become due, but do not apply to any supply made under an agreement in writing entered into before March 10, 2004.
PART 8LIMITATION PERIODS FOR COLLECTION OF CHARGE DEBTS AND TAX DEBTS
2002, c. 9, s. 5Air Travellers Security Charge Act
45. Subsections 72(1) and (2) of the Air Travellers Security Charge Act are replaced by the following:
Marginal note:Definitions
72. (1) The following definitions apply in this section.
“action”
« action »
“action” means an action to collect a charge debt of a person and includes a proceeding in a court and anything done by the Minister under any of sections 74 to 79.
“charge debt”
« dette fiscale »
“charge debt” means any amount payable by a person under this Act.
“legal representative”
« représentant légal »
“legal representative” of a person means a trustee in bankruptcy, an assignee, a liquidator, a curator, a receiver of any kind, a trustee, an heir, an administrator, an executor, a liquidator of a succession, a committee, or any other like person, administering, winding up, controlling or otherwise dealing in a representative or fiduciary capacity with any property, business, commercial activity or estate that belongs or belonged to, or that is or was held for the benefit of, the person or the person's estate.
Marginal note:Debts to Her Majesty
(1.1) A charge debt is a debt due to Her Majesty and is recoverable as such in the Federal Court or any other court of competent jurisdiction or in any other manner provided under this Act.
Marginal note:Court proceedings
(2) The Minister may not commence a proceeding in a court to collect a charge debt of a person in respect of an amount that may be assessed under this Act, unless when the proceeding is commenced the person has been or may be assessed for that amount.
Marginal note:No actions after limitation period
(2.1) The Minister may not commence an action to collect a charge debt after the end of the limitation period for the collection of the charge debt.
Marginal note:Limitation period
(2.2) The limitation period for the collection of a charge debt of a person
(a) begins
(i) if a notice of assessment in respect of the charge debt is mailed to the person, or a notice referred to in subsection 80(1) in respect of the charge debt is mailed to or served on the person, after March 3, 2004, on the last day on which one of those notices is mailed or served,
(ii) if no notice referred to in subparagraph (i) in respect of the charge debt was mailed or served and the earliest day on which the Minister can commence an action to collect that charge debt is after March 3, 2004, on that earliest day, and
(iii) in any other case, on March 4, 2004; and
(b) ends, subject to subsection (2.6), on the day that is 10 years after the day on which it begins.
Marginal note:Limitation period restarted
(2.3) The limitation period described in subsection (2.2) for the collection of a charge debt of a person restarts (and ends, subject to subsection (2.6), on the day that is 10 years after the day on which it restarts) on any day, before it would otherwise end, on which
(a) the person acknowledges the charge debt in accordance with subsection (2.4);
(b) the Minister commences an action to collect the charge debt; or
(c) the Minister, under subsection 75(8) or 81(4), assesses another person in respect of the charge debt.
Marginal note:Acknowledgement of charge debts
(2.4) A person acknowledges a charge debt if the person
(a) promises, in writing, to pay the charge debt;
(b) makes a written acknowledgement of the charge debt, whether or not a promise to pay can be inferred from the acknowledgement and whether or not it contains a refusal to pay; or
(c) makes a payment, including a purported payment by way of a negotiable instrument that is dishonoured, on account of the charge debt.
Marginal note:Agent or legal representative
(2.5) For the purposes of this section, an acknowledgement made by a person's agent or legal representative has the same effect as if it were made by the person.
Marginal note:Extension of limitation period
(2.6) In computing the day on which a limitation period ends, there shall be added the number of days on which one or more of the following is the case:
(a) the Minister has accepted and holds security in lieu of payment of the charge debt;
(b) if the person was resident in Canada on the applicable date described in paragraph (2.2)(a) in respect of the charge debt, the person is nonresident; or
(c) an action that the Minister may otherwise take in respect of the charge debt is restricted or not permitted under any provision of the Bankruptcy and Insolvency Act, of the Companies' Creditors Arrangement Act or of the Farm Debt Mediation Act.
R.S., c. E14Excise Act
46. Section 111 of the Excise Act is replaced by the following:
Marginal note:Definitions
111. (1) The following definitions apply in this section.
“action”
« action »
“action” means an action to collect a tax debt of a person and includes a proceeding in a court and anything done by the Minister under any provision of this Part.
“legal representative”
« représentant légal »
“legal representative” of a person means a trustee in bankruptcy, an assignee, a liquidator, a curator, a receiver of any kind, a trustee, an heir, an administrator, an executor, a liquidator of a succession, a committee, or any other like person, administering, winding up, controlling or otherwise dealing in a representative or fiduciary capacity with any property, business, commercial activity or estate that belongs or belonged to, or that is or was held for the benefit of, the person or the person's estate.
“tax debt”
« dette fiscale »
“tax debt” means any amount payable by a person under this Act.
Marginal note:Although no account or return rendered
(2) All duties of excise or licence fees payable under this Act are recoverable at any time after they ought to have been accounted for and paid, whether an account of quantity of the goods or commodities or a true return of the utensils, tools and apparatus on which the duties or licence fees are payable has or has not been made as required by this Act.
Marginal note:Debts to Her Majesty
(3) A tax debt is a debt due to Her Majesty and is recoverable as such with full costs of suit in the Federal Court or any other court of competent jurisdiction or in any other manner provided by this Act.
Marginal note:No actions after limitation period
(4) The Minister may not commence an action to collect a tax debt after the end of the limitation period for the collection of the tax debt.
Marginal note:Limitation period
(5) The limitation period for the collection of a tax debt of a person
(a) begins
(i) if the tax debt became payable after March 3, 2004, on the earliest day on which the Minister can commence an action to collect that tax debt, and
(ii) if subparagraph (i) does not apply and the tax debt was payable on March 4, 2004, or would have been payable on that date but for a limitation period that otherwise applied to the collection of the tax debt, on March 4, 2004; and
(b) ends, subject to subsection (9), on the day that is 10 years after the day on which it begins.
Marginal note:Limitation period restarted
(6) The limitation period described in subsection (5) for the collection of a tax debt of a person restarts (and ends, subject to subsection (9), on the day that is 10 years after the day on which it restarts) on any day, before it would otherwise end, on which
(a) the person acknowledges the tax debt in accordance with subsection (7); or
(b) the Minister commences an action to collect the tax debt.
Marginal note:Acknowledgement of tax debts
(7) A person acknowledges a tax debt if the person
(a) promises, in writing, to pay the tax debt;
(b) makes a written acknowledgement of the tax debt, whether or not a promise to pay can be inferred from the acknowledgement and whether or not it contains a refusal to pay; or
(c) makes a payment, including a purported payment by way of a negotiable instrument that is dishonoured, on account of the tax debt.
Marginal note:Agent or legal representative
(8) For the purposes of this section, an acknowledgement made by a person's agent or legal representative has the same effect as if it were made by the person.
Marginal note:Extension of limitation period
(9) In computing the day on which a limitation period ends, there shall be added the number of days on which one or more of the following is the case:
(a) the Minister has accepted and holds security in lieu of payment of the tax debt;
(b) if the person was resident in Canada on the applicable date described in paragraph (5)(a) in respect of the tax debt, the person is nonresident; or
(c) an action that the Minister may otherwise take in respect of the tax debt is restricted or not permitted under any provision of the Bankruptcy and Insolvency Act, of the Companies' Creditors Arrangement Act or of the Farm Debt Mediation Act.
Marginal note:Bar to claims
(10) Despite any law of Canada or a province, Her Majesty is not liable for any claim that arises because the Minister collected a tax debt after the end of any limitation period that applied to the collection of the tax debt and before March 4, 2004.
Marginal note:Orders after March 3, 2004 and before effect
(11) Despite any order or judgment made after March 3, 2004 that declares a tax debt not to be payable by a person, or that orders the Minister to reimburse to a person a tax debt collected by the Minister, because a limitation period that applied to the collection of the tax debt ended before royal assent to any measure giving effect to this section, the tax debt is deemed to have become payable on March 4, 2004.
2002, c. 22Excise Act, 2001
47. Subsections 284(1) and (2) of the Excise Act, 2001 are replaced by the following:
Marginal note:Definitions
284. (1) The following definitions apply in this section.
“action”
« action »
“action” means an action to collect a tax debt of a person and includes a proceeding in a court and anything done by the Minister under any provision of this Part.
“legal representative”
« représentant légal »
“legal representative” of a person means a trustee in bankruptcy, an assignee, a liquidator, a curator, a receiver of any kind, a trustee, an heir, an administrator, an executor, a liquidator of a succession, a committee, or any other like person, administering, winding up, controlling or otherwise dealing in a representative or fiduciary capacity with any property, business, commercial activity or estate that belongs or belonged to, or that is or was held for the benefit of, the person or the person's estate.
“tax debt”
« dette fiscale »
“tax debt” means any amount payable by a person under this Act.
Marginal note:Debts to Her Majesty
(1.1) A tax debt is a debt due to Her Majesty and is recoverable as such in the Federal Court or any other court of competent jurisdiction or in any other manner provided under this Act.
Marginal note:Court proceedings
(2) The Minister may not commence a proceeding in a court to collect a tax debt of a person in respect of an amount that may be assessed under this Act, unless when the proceeding is commenced the person has been or may be assessed for that amount.
Marginal note:No actions after limitation period
(2.1) The Minister may not commence an action to collect a tax debt after the end of the limitation period for the collection of the tax debt.
Marginal note:Limitation period
(2.2) The limitation period for the collection of a tax debt of a person
(a) begins
(i) if a notice of assessment in respect of the tax debt, or a notice referred to in subsection 254(1) or 294(1) in respect of the tax debt, is mailed to or served on the person after March 3, 2004, on the day that is 90 days after the day on which the last one of those notices is mailed or served,
(ii) if no notice referred to in subparagraph (i) in respect of the tax debt was mailed or served and the earliest day on which the Minister can commence an action to collect that tax debt is after March 3, 2004, on that earliest day, and
(iii) in any other case, on March 4, 2004; and
(b) ends, subject to subsection (2.6), on the day that is 10 years after the day on which it begins.
Marginal note:Limitation period restarted
(2.3) The limitation period described in subsection (2.2) for the collection of a tax debt of a person restarts (and ends, subject to subsection (2.6), on the day that is 10 years after the day on which it restarts) on any day, before it would otherwise end, on which
(a) the person acknowledges the tax debt in accordance with subsection (2.4);
(b) the Minister commences an action to collect the tax debt; or
(c) the Minister, under subsection 188(1), 289(7), 295(4), 296(2) or 297(3), assesses another person in respect of the tax debt.
Marginal note:Acknowledgement of tax debts
(2.4) A person acknowledges a tax debt if the person
(a) promises, in writing, to pay the tax debt;
(b) makes a written acknowledgement of the tax debt, whether or not a promise to pay can be inferred from the acknowledgement and whether or not it contains a refusal to pay; or
(c) makes a payment, including a purported payment by way of a negotiable instrument that is dishonoured, on account of the tax debt.
Marginal note:Agent or legal representative
(2.5) For the purposes of this section, an acknowledgement made by a person's agent or legal representative has the same effect as if it were made by the person.
Marginal note:Extension of limitation period
(2.6) In computing the day on which a limitation period ends, there shall be added the number of days on which one or more of the following is the case:
(a) the Minister may not, because of any of subsections 286(2) to (7), take any of the actions described in subsection 286(1) in respect of the tax debt;
(b) the Minister has accepted and holds security in lieu of payment of the tax debt;
(c) if the person was resident in Canada on the applicable date described in paragraph (2.2)(a) in respect of the tax debt, the person is nonresident; or
(d) an action that the Minister may otherwise take in respect of the tax debt is restricted or not permitted under any provision of the Bankruptcy and Insolvency Act, of the Companies' Creditors Arrangement Act or of the Farm Debt Mediation Act.
R.S., c. E15Excise Tax Act
Marginal note:R.S., c. 7 (2nd Supp.), s. 41(1)
48. Subsections 82(1) and (2) of the Excise Tax Act are replaced by the following:
Marginal note:Definitions
82. (1) The following definitions apply in this section.
“action”
« action »
“action” means an action to collect a tax debt of a person and includes a proceeding in a court and anything done by the Minister under any provision of this Part.
“legal representative”
« représentant légal »
“legal representative” of a person means a trustee in bankruptcy, an assignee, a liquidator, a curator, a receiver of any kind, a trustee, an heir, an administrator, an executor, a liquidator of a succession, a committee, or any other like person, administering, winding up, controlling or otherwise dealing in a representative or fiduciary capacity with any property, business, commercial activity or estate that belongs or belonged to, or that is or was held for the benefit of, the person or the person's estate.
“tax debt”
« dette fiscale »
“tax debt” means any amount payable by a person under this Act other than Part IX.
Marginal note:Debts to Her Majesty
(1.1) A tax debt is a debt due to Her Majesty in right of Canada and is recoverable as such in the Federal Court or any other court of competent jurisdiction or in any other manner provided under this Part.
Marginal note:Court proceedings
(2) Subject to subsection (3), the Minister may not commence a proceeding in a court to collect a tax debt of a person in respect of an amount that may be assessed under this Part, unless when the proceeding is commenced the person has been or may be assessed for that amount.
Marginal note:No actions after limitation period
(2.1) The Minister may not commence an action to collect a tax debt after the end of the limitation period for the collection of the tax debt.
Marginal note:Limitation period
(2.2) The limitation period for the collection of a tax debt of a person
(a) begins
(i) if a notice of assessment in respect of the tax debt is mailed to or served on the person after March 3, 2004, on the day that is 90 days after the day on which the notice is mailed or served,
(ii) if no notice referred to in subparagraph (i) in respect of the tax debt was mailed or served and the earliest day on which the Minister can commence an action to collect that tax debt is after March 3, 2004, on that earliest day, and
(iii) if subparagraphs (i) and (ii) do not apply and the tax debt was payable on March 4, 2004, or would have been payable on that date but for a limitation period that otherwise applied to the collection of the tax debt, on March 4, 2004; and
(b) ends, subject to subsection (2.6), on the day that is 10 years after the day on which it begins.
Marginal note:Limitation period restarted
(2.3) The limitation period described in subsection (2.2) for the collection of a tax debt of a person restarts (and ends, subject to subsection (2.6), on the day that is 10 years after the day on which it restarts) on any day, before it would otherwise end, on which
(a) the person acknowledges the tax debt in accordance with subsection (2.4);
(b) the Minister commences an action to collect the tax debt; or
(c) the Minister, under section 81.1, assesses another person in respect of the tax debt.
Marginal note:Acknowledgement of tax debts
(2.4) A person acknowledges a tax debt if the person
(a) promises, in writing, to pay the tax debt;
(b) makes a written acknowledgement of the tax debt, whether or not a promise to pay can be inferred from the acknowledgement and whether or not it contains a refusal to pay; or
(c) makes a payment, including a purported payment by way of a negotiable instrument that is dishonoured, on account of the tax debt.
Marginal note:Agent or legal representative
(2.5) For the purposes of this section, an acknowledgement made by a person's agent or legal representative has the same effect as if it were made by the person.
Marginal note:Extension of limitation period
(2.6) In computing the day on which a limitation period ends, there shall be added the number of days on which one or more of the following is the case:
(a) the Minister may not, because of any of subsections 86(5) to (8), take any of the actions described in subsection 86(4) in respect of the tax debt;
(b) the Minister has accepted and holds security in lieu of payment of the tax debt;
(c) if the person was resident in Canada on the applicable date described in paragraph (2.2)(a) in respect of the tax debt, the person is nonresident; or
(d) an action that the Minister may otherwise take in respect of the tax debt is restricted or not permitted under any provision of the Bankruptcy and Insolvency Act, of the Companies' Creditors Arrangement Act or of the Farm Debt Mediation Act.
Marginal note:Bar to claims
(2.7) Despite any law of Canada or a province, Her Majesty in right of Canada is not liable for any claim that arises because the Minister collected a tax debt after the end of any limitation period that applied to the collection of the tax debt and before March 4, 2004.
Marginal note:Orders after March 3, 2004 and before effect
(2.8) Despite any order or judgment made after March 3, 2004 that declares a tax debt not to be payable by a person, or that orders the Minister to reimburse to a person a tax debt collected by the Minister, because a limitation period that applied to the collection of the tax debt ended before royal assent to any measure giving effect to this section, the tax debt is deemed to have become payable on March 4, 2004.
Marginal note:1990, c. 45, s. 12(1)
49. Subsections 313(1) and (2) of the Act are replaced by the following:
Marginal note:Definitions
313. (1) The following definitions apply in this section.
“action”
« action »
“action” means an action to collect a tax debt of a person and includes a proceeding in a court and anything done by the Minister under any provision of this Division.
“legal representative”
« représentant légal »
“legal representative” of a person means a trustee in bankruptcy, an assignee, a liquidator, a curator, a receiver of any kind, a trustee, an heir, an administrator, an executor, a liquidator of a succession, a committee, or any other like person, administering, winding up, controlling or otherwise dealing in a representative or fiduciary capacity with any property, business, commercial activity or estate that belongs or belonged to, or that is or was held for the benefit of, the person or the person's estate.
“tax debt”
« dette fiscale »
“tax debt” means any amount payable or remittable by a person under this Part.
Marginal note:Debts to Her Majesty
(1.1) A tax debt is a debt due to Her Majesty in right of Canada and is recoverable as such in the Federal Court or any other court of competent jurisdiction or in any other manner provided under this Part.
Marginal note:Court proceedings
(2) The Minister may not commence a proceeding in a court to collect a tax debt of a person in respect of an amount that may be assessed under this Part, unless when the proceeding is commenced the person has been or may be assessed for that amount.
Marginal note:No actions after limitation period
(2.1) The Minister may not commence an action to collect a tax debt after the end of the limitation period for the collection of the tax debt.
Marginal note:Limitation period
(2.2) The limitation period for the collection of a tax debt of a person
(a) begins
(i) if a notice of assessment, or a notice referred to in subsection 322(1), in respect of the tax debt, is mailed to or served on the person after March 3, 2004, on the last day on which one of those notices is mailed or served,
(ii) if no notice referred to in subparagraph (i) in respect of the tax debt was mailed or served and the earliest day on which the Minister can commence an action to collect that tax debt is after March 3, 2004, on that earliest day, and
(iii) if subparagraphs (i) and (ii) do not apply and the tax debt was payable on March 4, 2004, or would have been payable on that date but for a limitation period that otherwise applied to the collection of the tax debt, on March 4, 2004; and
(b) ends, subject to subsection (2.6), on the day that is 10 years after the day on which it begins.
Marginal note:Limitation period restarted
(2.3) The limitation period described in subsection (2.2) for the collection of a tax debt of a person restarts (and ends, subject to subsection (2.6), on the day that is 10 years after the day on which it restarts) on any day, before it would otherwise end, on which
(a) the person acknowledges the tax debt in accordance with subsection (2.4);
(b) a remittance in respect of the tax debt is deemed under subsection 228(6) to have been made;
(c) a reduction or an offset in respect of the tax debt is made under subsection 228(7);
(d) the Minister commences an action to collect the tax debt; or
(e) the Minister, under paragraph 296(1)(e) or subsection 317(9), 323(4), 324(2) or 325(2), assesses another person in respect of the tax debt.
Marginal note:Acknowledgement of tax debts
(2.4) A person acknowledges a tax debt if the person
(a) promises, in writing, to pay the tax debt;
(b) makes a written acknowledgement of the tax debt, whether or not a promise to pay can be inferred from the acknowledgement and whether or not it contains a refusal to pay; or
(c) makes a payment, including a purported payment by way of a negotiable instrument that is dishonoured, on account of the tax debt.
Marginal note:Agent or legal representative
(2.5) For the purposes of this section, an acknowledgement made by a person's agent or legal representative has the same effect as if it were made by the person.
Marginal note:Extension of limitation period
(2.6) In computing the day on which a limitation period ends, there shall be added the number of days on which one or more of the following is the case:
(a) the Minister has postponed collection action against the person under subsection 315(3) in respect of the tax debt;
(b) the Minister has accepted and holds security in lieu of payment of the tax debt;
(c) if the person was resident in Canada on the applicable date described in paragraph (2.2)(a) in respect of the tax debt, the person is nonresident; or
(d) an action that the Minister may otherwise take in respect of the tax debt is restricted or not permitted under any provision of the Bankruptcy and Insolvency Act, of the Companies' Creditors Arrangement Act or of the Farm Debt Mediation Act.
Marginal note:Bar to claims
(2.7) Despite any law of Canada or a province, Her Majesty in right of Canada is not liable for any claim that arises because the Minister collected a tax debt after the end of any limitation period that applied to the collection of the tax debt and before March 4, 2004.
Marginal note:Orders after March 3, 2004 and before effect
(2.8) Despite any order or judgment made after March 3, 2004 that declares a tax debt not to be payable or remittable by a person, or that orders the Minister to reimburse to a person a tax debt collected by the Minister, because a limitation period that applied to the collection of the tax debt ended before royal assent to any measure giving effect to this section, the tax debt is deemed to have become payable or remittable on March 4, 2004.
R.S., c. 1 (5th Supp.)Income Tax Act
50. Section 222 of the Income Tax Act is replaced by the following:
Marginal note:Definitions
222. (1) The following definitions apply in this section.
“action”
« action »
“action” means an action to collect a tax debt of a taxpayer and includes a proceeding in a court and anything done by the Minister under subsection 129(2), 131(3), 132(2) or 164(2), section 203 or any provision of this Part.
“tax debt”
« dette fiscale »
“tax debt” means any amount payable by a taxpayer under this Act.
Marginal note:Debts to Her Majesty
(2) A tax debt is a debt due to Her Majesty and is recoverable as such in the Federal Court or any other court of competent jurisdiction or in any other manner provided by this Act.
Marginal note:No actions after limitation period
(3) The Minister may not commence an action to collect a tax debt after the end of the limitation period for the collection of the tax debt.
Marginal note:Limitation period
(4) The limitation period for the collection of a tax debt of a taxpayer
(a) begins
(i) if a notice of assessment, or a notice referred to in subsection 226(1), in respect of the tax debt is mailed to or served on the taxpayer, after March 3, 2004, on the day that is 90 days after the day on which the last one of those notices is mailed or served, and
(ii) if subparagraph (i) does not apply and the tax debt was payable on March 4, 2004, or would have been payable on that date but for a limitation period that otherwise applied to the collection of the tax debt, on March 4, 2004; and
(b) ends, subject to subsection (8), on the day that is 10 years after the day on which it begins.
Marginal note:Limitation period restarted
(5) The limitation period described in subsection (4) for the collection of a tax debt of a taxpayer restarts (and ends, subject to subsection (8), on the day that is 10 years after the day on which it restarts) on any day, before it would otherwise end, on which
(a) the taxpayer acknowledges the tax debt in accordance with subsection (6);
(b) the Minister commences an action to collect the tax debt; or
(c) the Minister, under subsection 159(3) or 160(2) or paragraph 227(10)(a), assesses any person in respect of the tax debt.
Marginal note:Acknowledgement of tax debts
(6) A taxpayer acknowledges a tax debt if the taxpayer
(a) promises, in writing, to pay the tax debt;
(b) makes a written acknowledgement of the tax debt, whether or not a promise to pay can be inferred from the acknowledgement and whether or not it contains a refusal to pay; or
(c) makes a payment, including a purported payment by way of a negotiable instrument that is dishonoured, on account of the tax debt.
Marginal note:Agent or legal representative
(7) For the purposes of this section, an acknowledgement made by a taxpayer's agent or legal representative has the same effect as if it were made by the taxpayer.
Marginal note:Extension of limitation period
(8) In computing the day on which a limitation period ends, there shall be added the number of days on which one or more of the following is the case:
(a) the Minister may not, because of any of subsections 225.1(2) to (5), take any of the actions described in subsection 225.1(1) in respect of the tax debt;
(b) the Minister has accepted and holds security in lieu of payment of the tax debt;
(c) if the taxpayer was resident in Canada on the applicable date described in paragraph (4)(a) in respect of the tax debt, the taxpayer is nonresident; or
(d) an action that the Minister may otherwise take in respect of the tax debt is restricted or not permitted under any provision of the Bankruptcy and Insolvency Act, of the Companies' Creditors Arrangement Act or of the Farm Debt Mediation Act.
Marginal note:Bar to claims
(9) Notwithstanding any law of Canada or a province, Her Majesty is not liable for any claim that arises because the Minister collected a tax debt after the end of any limitation period that applied to the collection of the tax debt and before March 4, 2004.
Marginal note:Orders after March 3, 2004 and before effect
(10) Notwithstanding any order or judgment made after March 3, 2004 that declares a tax debt not to be payable by a taxpayer, or that orders the Minister to reimburse to a taxpayer a tax debt collected by the Minister, because a limitation period that applied to the collection of the tax debt ended before royal assent to any measure giving effect to this section, the tax debt is deemed to have become payable on March 4, 2004.
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