• 176. (1) The definition “adjusted income” in section 122.6 of the Act is replaced by the following:

  “adjusted income”

  « revenu modifié »

  “adjusted income” of an individual for a taxation year means the total of all amounts each of which would be the income for the year of the individual or of the person who was the individual’s cohabiting spouse or common-law partner at the end of the year if no amount were included under subsection 56(6) or in respect of any gain from a disposition of property to which section 79 applies in computing that income and if no amount were deductible under paragraph 60(y) in computing that income;

• (2) Subsection (1) applies to the 2006 and subsequent taxation years.

• 177. (1) The description of A in subsection 122.61(1) of the Act is amended by adding the word “and” at the end of paragraph (a), by striking out the word “and” at the end of paragraph (b) and by repealing paragraph (c).

• (2) Subsection (1) applies in respect of overpayments that are deemed to arise during months that are after June 2007, and, for overpayments that are deemed to arise during months that are after June 2006 and before July 2007, the description of D in subsection 122.61(1) of the Act is to be read as follows:

  D

  is the product obtained by multiplying $249 by the number of qualified dependants who have attained the age of 6 years before the month and have not attained the age of 7 years before the month and in respect of whom the person is an eligible individual at the beginning of the month, and

• 178. (1) The definition “adjusted income” in subsection 180.2(1) of the Act is replaced by the following:

  “adjusted income”

  « revenu modifié »

  “adjusted income” of an individual for a taxation year means the amount that would be the individual’s income under Part I for the year if no amount were included under subsection 56(6) or in respect of a gain from a disposition of property to which section 79 applies in computing that income and if no amount were deductible under paragraph 60(w) or (y) in computing that income;

• (2) Subsection (1) applies to the 2006 and subsequent taxation years.

• 179. (1) Paragraph 241(4)(d) of the Act is amended by adding the following after subparagraph (vii.2):

  • (vii.3) to an official solely for the purposes of the administration and enforcement of the Children’s Special Allowances Act or the evaluation or formation of policy for that Act,

  • (vii.4) to an official solely for the purposes of the administration and enforcement of the Universal Child Care Benefit Act or the evaluation or formation of policy for that Act,

• (2) Subparagraph 241(4)(d)(vii.3) of the Act, as enacted by subsection (1), applies after June 2003.

• (3) Subparagraph 241(4)(d)(vii.4) of the Act, as enacted by subsection (1), applies after June 2006.

R.S., O-9Old Age Security Act

180. The definition “income” in section 2 of the Old Age Security Act is amended by striking out the word “and” at the end of paragraph (c), by adding the word “and” at the end of paragraph (d) and by adding the following after paragraph (d):

Coming Into Force

Marginal note:Coming into force

181. This Part, other than sections 173 to 179, comes into force, or is deemed to have come into force, on July 1, 2006.

PART 7R.S., c. F-8; 1995, c. 17, s. 45(1)AMENDMENTS TO THE FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT

Marginal note:2005, c. 7, s. 1(1)

182. Section 3 of the Federal-Provincial Fiscal Arrangements Act is replaced by the following:

Marginal note:2005, c. 7, s. 1(1)

• 183. (1) Subsection 4.1(3) of the Act is replaced by the following:

  • Marginal note:Provincial allocation for fiscal year 2006-2007

    (2.1) The fiscal equalization payment referred to in paragraph (1)(b) shall be allocated to the provinces as follows:

    • (a) to Quebec, $5,539,296,000;

    • (b) to Nova Scotia, $1,385,539,000;

    • (c) to New Brunswick, $1,450,799,000;

    • (d) to Manitoba, $1,709,430,000;

    • (e) to British Columbia, $260,228,000;

    • (f) to Prince Edward Island, $291,262,000;

    • (g) to Saskatchewan, $12,723,000; and

    • (h) to Newfoundland and Labrador, $632,223,000.

  • Marginal note:Provincial allocation for subsequent fiscal years

    (3) With the approval of the Governor in Council, the fiscal equalization payments referred to in paragraph (1)(c) shall be allocated to each province in the proportion that the Minister considers appropriate. The approval of the Governor in Council shall be given once in respect of the three-month period beginning on April 1, 2007 and once in respect of each subsequent three-month period, within three months before the beginning of each of those periods.

• Marginal note:2005, c. 7, s. 1(1)

  (2) Subsection 4.1(4) of the Act is replaced by the following:

  • Marginal note:Upward adjustment of fiscal equalization payment for the fiscal year 2006-2007

    (3.1) If the fiscal equalization payment for the fiscal year beginning on April 1, 2006 to which a province is entitled under subsection (2.1) exceeds the fiscal equalization payment that was paid to that province in accordance with the allocation determined under subsection (3), as it read on April 1, 2006, an amount equal to the difference may be paid to the province at the times and in the manner that the Minister considers appropriate.

  • Marginal note:Overpayment made to a province for the fiscal year 2006-2007

    (3.2) If the fiscal equalization payment for the fiscal year beginning on April 1, 2006 to which a province is entitled under subsection (2.1) is less than the fiscal equalization payment that was paid to that province in accordance with the allocation determined under subsection (3), as it read on April 1, 2006, the Minister may recover the amount of that overpayment

    • (a) from any amount payable to the province under this Act in that fiscal year or as soon as possible after the end of that fiscal year; or

    • (b) from the province as a debt due to Her Majesty in right of Canada.

  • Marginal note:Time and manner of payment

    (4) The fiscal equalization payment shall be paid to the province in equal monthly instalments on the first and third working days after the 15th day of each month during the relevant fiscal year. For the purpose of this subsection, “working day” includes any day that is not a Saturday or a holiday.

184. The Act is amended by adding the following after section 4.3:

Marginal note:2005, c. 7, s. 1(1)

185. The portion of section 4.4 of the Act before paragraph (a) is replaced by the following:

• 186. (1) Section 4.92 of the Act is amended by adding the following after subsection (1):

  • Marginal note:Payment for fiscal year 2006-2007

    (1.1) For the fiscal year beginning on April 1, 2006, a territorial formula financing payment may be paid

    • (a) to Yukon, in the amount of $505,608,000;

    • (b) to the Northwest Territories, in the amount of $739,414,000; and

    • (c) to Nunavut, in the amount of $824,978,000.

• Marginal note:2005, c. 7, s. 1(1)

  (2) Subsections 4.92(3) and (4) of the Act are replaced by the following:

  • Marginal note:Territorial allocation for subsequent fiscal years

    (3) With the approval of the Governor in Council, the territorial formula financing payments referred to in subsection (2) shall be allocated to each territory in the proportion that the Minister considers appropriate. The approval of the Governor in Council shall be given once in respect of the three-month period beginning on April 1, 2007 and once in respect of each subsequent three-month period, within three months before the beginning of each of those periods.

  • Marginal note:Time and manner of payment

    (4) In April and May of each fiscal year beginning after March 31, 2005, there shall be paid to a territory a monthly instalment of the territorial formula financing payment equal to 16 per cent of the territory’s allocation of the aggregate territorial formula financing payment for that fiscal year. In each of the remaining ten months of the fiscal year, there shall be paid to the territory a monthly instalment of the territorial formula financing payment equal to 6.8 per cent of the territory’s allocation of the aggregate territorial formula financing payment under this section.

Marginal note:2005, c. 7, s. 1(1)

187. Section 4.93 of the Act is replaced by the following:

188. The Act is amended by adding the following after section 4.93:

Marginal note:2005, c. 7, s. 6

189. Section 41 of the Act is replaced by the following:

PART 8PAYMENTS TO PROVINCES AND TERRITORIES

Marginal note:Payment of $650,000,000

• 190. (1) From and out of the Consolidated Revenue Fund, there may, on the requisition of the Minister of Human Resources and Skills Development, be paid to the provinces a payment in the amount of $650,000,000 for the fiscal year beginning on April 1, 2006, in respect of early learning and child care.

• Marginal note:Provincial allocation

  (2) The payment referred to in subsection (1) shall be allocated to the provinces as follows:

  • (a) to Ontario, $252,933,933.35;

  • (b) to Quebec, $152,740,663.90;

  • (c) to Nova Scotia, $18,743,350.65;

  • (d) to New Brunswick, $15,028,068.42;

  • (e) to Manitoba, $23,683,368.44;

  • (f) to British Columbia, $85,920,064.72;

  • (g) to Prince Edward Island, $2,762,632.45;

  • (h) to Saskatchewan, $19,863,918.85;

  • (i) to Alberta, $65,973,415.33;

  • (j) to Newfoundland and Labrador, $10,266,477.67;

  • (k) to Yukon, $619,370.20;

  • (l) to the Northwest Territories, $862,067.75; and

  • (m) to Nunavut, $602,668.27.

Marginal note:Payment to territories

191. From and out of the Consolidated Revenue Fund, there may, on the requisition of the Minister of Finance, be paid to the territories the following payments for the fiscal year beginning on April 1, 2006:

• (a) to Yukon, $10,900,000;

• (b) to the Northwest Territories, $18,000,000; and

• (c) to Nunavut, $17,500,000.

PART 9MORTGAGE INSURANCE

Marginal note:Interpretation

192. The following definitions apply in sections 193 and 194.

“mortgagee”

« créancier hypothécaire »

“mortgagee” means a mortgagee or hypothecary creditor that holds a mortgage or hypothec insurance policy with a mortgage insurer.

“mortgage insurer”

« assureur hypothécaire »

“mortgage insurer” means a corporation to which subsection 13(1) of the Insurance Companies Act applies and that is approved by the Superintendent of Financial Institutions to sell mortgage or hypothec insurance policies in Canada.

Marginal note:Mortgage or hypothec insurance protection agreement

• 193. (1) The Minister of Finance may, with respect to an insurance policy held by a mortgagee, enter into an agreement with any person, including a mortgage insurer or the mortgagee, to do any of the following:

  • (a) provide an indemnity to the mortgagee;

  • (b) provide a guarantee or suretyship to the mortgagee; and

  • (c) purchase a replacement insurance policy for the mortgagee.

• Marginal note:Payment to be made

  (2) The agreement shall provide that, if the mortgage insurer with whom the mortgagee holds an insurance policy becomes insolvent or is liquidated, a payment shall be made to the mortgagee, or to another mortgage insurer if the agreement provides for a replacement insurance policy.

• Marginal note:Amount of payment

  (3) Subject to regulations made under paragraph 194(1)(a), the payment shall be equal to the benefits payable under the insurance policy held with the mortgage insurer less 10 per cent of the original principal amount of the mortgage or hypothec that is subject to the insurance policy.

• Marginal note:Limitation

  (4) The aggregate outstanding principal amount of all mortgages or hypothecs to which insurance policies that are subject to such agreements apply shall not at any time exceed $200,000,000,000 or any other amount that may be authorized for the purposes of this subsection under an appropriation Act.

• Marginal note:Deeming

  (5) An agreement having the same purpose as an agreement referred to in subsection (1) and that is entered into by the Minister of Finance before the coming into force of that subsection is deemed to be an agreement referred to in this section.