Budget Implementation Act, 2005 (S.C. 2005, c. 30)
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Assented to 2005-06-29
PART 3AMENDMENTS IN RESPECT OF THE GOODS AND SERVICES TAX AND HARMONIZED SALES TAX
R.S., c. E-15Excise Tax Act
23. Section 295 of the Act is amended by adding the following after subsection (6):
Marginal note:Confirmation of registration and business number
(6.1) On being provided by any person with information specified by the Minister sufficient to identify a single person and a number, an official may confirm or deny that the following statements are both true:
(a) the identified person is registered under Subdivision d of Division V; and
(b) the number is the business number of the identified person.
Marginal note:1997, c. 10, s. 239(1)
24. Subsection 323(1) of the Act is replaced by the following:
Marginal note:Liability of directors
323. (1) If a corporation fails to remit an amount of net tax as required under subsection 228(2) or (2.3) or to pay an amount as required under section 230.1 that was paid to, or was applied to the liability of, the corporation as a net tax refund, the directors of the corporation at the time the corporation was required to remit or pay, as the case may be, the amount are jointly and severally, or solidarily, liable, together with the corporation, to pay the amount and any interest on, or penalties relating to, the amount.
PART 4AMENDMENTS IN RESPECT OF EXCISE TAX ON JEWELLERY, ETC.
R.S., c. E-15Excise Tax Act
25. (1) Section 5 of Schedule I to the Excise Tax Act is replaced by the following:
5. Clocks and watches adapted to household or personal use, except railway men’s watches, and those specially designed for the use of the blind,
(a) eight per cent of the amount by which the sale price or duty paid value exceeds fifty dollars, applicable after February 23, 2005 and before March 2006;
(b) six per cent of the amount by which the sale price or duty paid value exceeds fifty dollars, applicable after February 2006 and before March 2007;
(c) four per cent of the amount by which the sale price or duty paid value exceeds fifty dollars, applicable after February 2007 and before March 2008; and
(d) two per cent of the amount by which the sale price or duty paid value exceeds fifty dollars, applicable after February 2008 and before March 2009.
5.1 Articles of all kinds made in whole or in part of ivory, jet, amber, coral, mother of pearl, natural shells, tortoise shell, jade, onyx, lapis lazuli or other semi-precious stones,
(a) eight per cent, applicable after February 23, 2005 and before March 2006;
(b) six per cent, applicable after February 2006 and before March 2007;
(c) four per cent, applicable after February 2007 and before March 2008; and
(d) two per cent, applicable after February 2008 and before March 2009.
5.2 The following articles, namely, articles commonly or commercially known as jewellery, whether real or imitation, including diamonds and other precious or semi-precious stones for personal use or for adornment of the person, and goldsmiths’ and silversmiths’ products except gold-plated or silver-plated ware for the preparation or serving of food or drink,
(a) eight per cent, applicable after February 23, 2005 and before March 2006;
(b) six per cent, applicable after February 2006 and before March 2007;
(c) four per cent, applicable after February 2007 and before March 2008; and
(d) two per cent, applicable after February 2008 and before March 2009.
(2) Subsection (1) is deemed to have come into force on February 24, 2005.
26. (1) Sections 5 to 5.2 of Schedule I to the Act are repealed.
(2) Subsection (1) comes into force on March 1, 2009.
PART 5AMENDMENTS TO THE FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT
R.S., F-8; 1995, c. 17, s. 45(1)Federal-Provincial Fiscal Arrangements Act
27. The headings before section 24 of the Federal-Provincial Fiscal Arrangements Act are replaced by the following:
PART V.1CANADA HEALTH TRANSFER, CANADA SOCIAL TRANSFER, HEALTH REFORM TRANSFER AND EARLY LEARNING AND CHILD CARE TRANSFER
Canada Health Transfer
28. The Act is amended by adding the following after section 24.7:
Early Learning and Child Care Transfer
Marginal note:Payments to trust
24.71 (1) The Minister may make direct payments, in an aggregate amount of not more than $700 million, to a trust established to provide the provinces with funding for the purpose of assisting them to invest in early learning and child care in accordance with four key principles: quality, universal inclusiveness, accessibility and development.
Marginal note:Share of a province
(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.
Marginal note:Payments out of the C.R.F.
(3) Despite section 24.8, any amount payable under this section may be paid by the Minister out of the Consolidated Revenue Fund at the times and in the manner that the Minister considers appropriate.
Coordinating Amendment
Marginal note:Bill C-39
29. If Bill C-39, introduced in the 1st session of the 38th Parliament and entitled An Act to amend the Federal-Provincial Fiscal Arrangements Act and to enact an Act respecting the provision of funding for diagnostic and medical equipment (the “other Act”), receives royal assent, then, on the later of the coming into force of section 1 of the other Act and section 27 of this Act, the headings before section 24 of the Federal-Provincial Fiscal Arrangements Act are replaced by the following:
PART V.1CANADA HEALTH TRANSFER, CANADA SOCIAL TRANSFER, HEALTH REFORM TRANSFER, WAIT TIMES REDUCTION TRANSFER AND EARLY LEARNING AND CHILD CARE TRANSFER
Canada Health Transfer
PART 6NORTHERN STRATEGY
Marginal note:Payments to trust
30. (1) The Minister of Finance may make direct payments, in an aggregate amount of not more than one hundred and twenty million dollars, to a trust established to provide the territories with funding for the purpose of assisting them to achieve the goals of the Northern Strategy developed jointly by the federal government and the territories.
Marginal note:Share of a territory
(2) The amount that may be provided to a territory under this section is to be determined in accordance with the terms of the trust indenture establishing the trust.
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.
PART 7AUDITOR GENERAL OF CANADA
R.S., c. A-17Amendments to the Auditor General Act
31. The heading before section 2 of the French version of the Auditor General Act is replaced by the following:
DÉFINITIONS ET CHAMP D’APPLICATION
32. Section 2 of the Act is amended by adding the following in alphabetical order:
“funding agreement”
« accord de financement »
“funding agreement”, in respect of a corporation, means an agreement in writing under which the corporation receives funding from Her Majesty in right of Canada, either directly or through an agent or mandatary of Her Majesty, including by way of a loan, but does not include a construction contract, a goods contract or a service contract;
“not-for-profit corporation”
« société sans but lucratif »
“not-for-profit corporation” means a corporation no part of whose income is payable to or otherwise available for the personal benefit of any of its members or shareholders;
“recipient corporation”
« société bénéficiaire »
“recipient corporation” means any not-for-profit corporation, or any corporation without share capital, that has, in any five consecutive fiscal years, received a total of $100,000,000 or more under one or more funding agreements, but does not include any such corporation that is
(a) a Crown corporation,
(b) a departmental corporation as defined in section 2 of the Financial Administration Act,
(c) a municipality,
(d) a cooperative, other than a non-profit cooperative,
(e) a corporation that receives, on an ongoing basis, at least half of its funding from a municipality or the government of a province or of a foreign state, or from any agency of a municipality or any such government,
(f) a corporation that is controlled by a municipality or a government other than the Government of Canada, or
(g) an international organization;
33. The Act is amended by adding the following after section 2:
Marginal note:Control
2.1 (1) For the purpose of paragraph (f) of the definition “recipient corporation” in section 2, a municipality or government controls a corporation with share capital if
(a) shares of the corporation to which are attached more than fifty per cent of the votes that may be cast to elect directors of the corporation are held, otherwise than by way of security only, by, on behalf of or in trust for that municipality or government; and
(b) the votes attached to those shares are sufficient, if exercised, to elect a majority of the directors of the corporation.
Marginal note:Control
(2) For the purpose of paragraph (f) of the definition “recipient corporation” in section 2, a corporation without share capital is controlled by a municipality or government if it is able to appoint the majority of the directors of the corporation, whether or not it does so.
34. The Act is amended by adding the following after section 7:
Marginal note:Inquiry and report
7.1 (1) The Auditor General may, with respect to any recipient corporation, inquire into its use of funds received from Her Majesty in right of Canada and inquire into whether
(a) the corporation has failed to fulfil its obligations under any funding agreement;
(b) money the corporation has received under any funding agreement has been used without due regard to economy and efficiency;
(c) the corporation has failed to establish satisfactory procedures to measure and report on the effectiveness of its activities in relation to the objectives for which it received funding under any funding agreement;
(d) the corporation has failed to faithfully and properly maintain accounts and essential records in relation to any amount it has received under any funding agreement; or
(e) money the corporation has received under any funding agreement has been expended without due regard to the environmental effects of those expenditures in the context of sustainable development.
Marginal note:Report
(2) The Auditor General may set out his or her conclusions in respect of an inquiry into any matter referred to in subsection (1) in the annual report, or in any of the three additional reports, referred to in subsection 7(1). The Auditor General may also set out in that report anything emerging from the inquiry that he or she considers to be of significance and of a nature that should be brought to the attention of the House of Commons.
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