• 81. (1) The portion of subsection 136(2) of the Act before paragraph (a) is replaced by the following:

  • Definition of “cooperative corporation”

    (2) In this section, “cooperative corporation” means a corporation that was incorporated or continued by or under the provisions of a law, of Canada or of a province, that provide for the establishment of the corporation as a cooperative corporation or that provide for the establishment of cooperative corporations, for the purpose of marketing (including processing incident to or connected to the marketing) natural products belonging to or acquired from its members or customers, of purchasing supplies, equipment or household necessaries for or to be sold to its members or customers or of performing services for its members or customers, if

• (2) Subsection (1) applies after June 2005.

• 82. (1) Subsection 181.1(1.1) of the Act is amended by adding the word “and” at the end of paragraph (b) and by repealing paragraphs (d) and (e).

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

• 83. (1) Subparagraphs 186(1)(d)(i) and (ii) of the Act are replaced by the following:

  • (i) non-capital loss for any of its 20 taxation years immediately preceding or 3 taxation years immediately following the year, and

  • (ii) farm loss for any of its 20 taxation years immediately preceding or 3 taxation years immediately following the year

• (2) Subsection (1) applies in respect of losses that arise in the 2006 and subsequent taxation years.

• 84. (1) Subsection 211.1(2) of the Act is replaced by the following:

  • Marginal note:Taxable Canadian life investment income

    (2) For the purposes of this Part, the taxable Canadian life investment income of a life insurer for a taxation year is the amount, if any, by which its Canadian life investment income for the year exceeds the total of its Canadian life investment losses for the 20 taxation years immediately preceding the year, to the extent that those losses were not deducted in computing its taxable Canadian life investment income for any preceding taxation year.

• (2) Subsection (1) applies in respect of losses that arise in the 2006 and subsequent taxation years.

• 85. (1) Subsection 225.1(8) of the Act is replaced by the following:

  • Definition of “large corporation”

    (8) For the purposes of this section and section 235, a corporation (other than a corporation described in subsection 181.1(3)) is a “large corporation” in a particular taxation year if the total of the taxable capital employed in Canada of the corporation, at the end of the particular taxation year, and the taxable capital employed in Canada of any other corporation, at the end of the other corporation’s last taxation year that ends at or before the end of the particular taxation year, if the other corporation is related (within the meaning assigned for the purposes of section 181.5) to the corporation at the end of the particular taxation year, exceeds $10 million, and, for the purpose of this subsection, a corporation formed as a result of the amalgamation or merger of 2 or more predecessor corporations is deemed to be the same corporation as, and a continuation of, each predecessor corporation.

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

• 86. (1) The portion of subsection 227(5) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Payments by trustees, etc.

    (5) Where a specified person in relation to a particular person (in this subsection referred to as the “payer”) has any direct or indirect influence over the disbursements, property, business or estate of the payer and the specified person, alone or together with another person, authorizes or otherwise causes a payment referred to in subsection 135(3), 135.1(7) or 153(1), or on or in respect of which tax is payable under Part XII.5 or XIII, to be made by or on behalf of the payer, the specified person

• (2) Paragraph 227(5)(a.1) of the Act is replaced by the following:

  • (a.1) is, for the purposes of subsections 135.1(7) and 211.8(2), deemed to be a person who redeemed, acquired or cancelled a share and made the payment as a consequence of the redemption, acquisition or cancellation;

• (3) Subparagraph 227(5)(b)(i) of the Act is replaced by the following:

  • (i) all amounts payable by the payer because of any of subsections 135(3), 135.1(7), 153(1) and 211.8(2) and section 215 in respect of the payment, and

• (4) The portion of subsection 227(8.3) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Interest on amounts not deducted or withheld

    (8.3) A person who fails to deduct or withhold any amount as required by subsection 135(3), 135.1(7), 153(1) or 211.8(2) or section 215 shall pay to the Receiver General interest on the amount at the prescribed rate, computed

• (5) Paragraph 227(8.3)(b) of the Act is replaced by the following:

  • (b) in the case of an amount required by subsection 135(3) or 135.1(7) or section 215 to be deducted or withheld, from the day on which the amount was required to be deducted or withheld to the day of payment of the amount to the Receiver General; and

• (6) Subsection 227(8.4) of the Act is replaced by the following:

  • Marginal note:Liability to pay amount not deducted or withheld

    (8.4) A person who fails to deduct or withhold any amount as required under subsection 135(3) or 135.1(7) in respect of a payment made to another person or under subsection 153(1) in respect of an amount paid to another person who is non-resident or who is resident in Canada solely because of paragraph 250(1)(a) is liable to pay as tax under this Act on behalf of the other person the whole of the amount that should have been so deducted or withheld and is entitled to deduct or withhold from any amount paid or credited by the person to the other person or otherwise to recover from the other person any amount paid by the person as tax under this Part on behalf of the other person.

• (7) Subsections (1) to (6) apply after 2005.

• 87. (1) Subsection 227.1(1) of the Act is replaced by the following:

  Marginal note:Liability of directors for failure to deduct

  • 227.1 (1) Where a corporation has failed to deduct or withhold an amount as required by subsection 135(3) or 135.1(7) or section 153 or 215, has failed to remit such an amount or has failed to pay an amount of tax for a taxation year as required under Part VII or VIII, the directors of the corporation at the time the corporation was required to deduct, withhold, remit or pay the amount are jointly and severally, or solidarily, liable, together with the corporation, to pay that amount and any interest or penalties relating to it.

• (2) Subsection (1) applies after 2005.

• 88. (1) Section 235 of the Act is replaced by the following:

  Marginal note:Penalty for failing to file corporate returns

  235. Every large corporation (within the meaning assigned by subsection 225.1(8)) that fails to file a return for a taxation year as and when required by section 150 or 190.2 is liable, in addition to any penalty otherwise provided, to a penalty for each such failure equal to the amount determined by the formula

  A × B

  where

  A

  is the total of

  • (a) 0.0005% of the corporation’s taxable capital employed in Canada at the end of the taxation year, and

  • (b) 0.25% of the tax that would be payable under Part VI by the corporation for the year if this Act were read without reference to subsection 190.1(3); and

  B

  is the number of complete months, not exceeding 40, from the day on or before which the return was required to be filed to the day on which the return is filed.

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

PART 3AMENDMENTS RELATING TO EXCISE TAX ON JEWELLERY, ETC.

R.S., c. E-15Excise Tax Act

Marginal note:2005, c. 30, s. 25(1)

• 89. (1) Sections 5 to 5.2 of Schedule I to the Excise Tax Act are repealed.

• (2) Subsection (1) is deemed to have come into force on May 2, 2006.

2005, c. 30Budget Implementation Act, 2005

90. Section 26 of the Budget Implementation Act, 2005 is repealed.

PART 4AMENDMENTS RELATING TO ABORIGINAL TAX POWERS AND ABORIGINAL TAX TREATMENT

2003, c. 15, s. 67First Nations Goods and Services Tax Act

Marginal note:2005, c. 19, s. 10

91. The title of Part 2 of the First Nations Goods and Services Tax Act is replaced by the following:

Marginal note:2005, c. 19, s. 10

• 92. (1) The definitions “parallel Quebec law” and “reserves in Quebec” in section 17 of the Act are repealed.

• (2) Section 17 of the Act is amended by adding the following in alphabetical order:

  “parallel provincial law”

  « loi provinciale parallèle »

  “parallel provincial law”, in respect of a band law, means the enactment of the specified province listed in Schedule 2 opposite the name of the council of the band that enacted the band law, or those provisions of an enactment of that province, to which the band law is similar.

  “specified province”

  « province visée »

  “specified province” means a province that is listed in Schedule 2.

Marginal note:2005, c. 19, s. 10

93. Sections 21 and 22 of the Act are replaced by the following:

Marginal note:2005, c. 19, s. 10

• 94. (1) Subsections 23(1) and (2) of the Act are replaced by the following:

  Marginal note:Authority to impose a direct sales tax

  • 23. (1) A council of the band that is listed in Schedule 2 may enact a law that imposes a direct sales tax, and any other amount that may be required to be paid in relation to the imposition of that direct sales tax, within its reserves that are situated in the specified province listed opposite the name of that council in that Schedule and that are listed in that Schedule opposite the name of the council.

  • Marginal note:Parallel provincial law

    (2) A law may not be enacted under subsection (1) unless the law has only one parallel provincial law that is expressly identified in that law.

• Marginal note:2005, c. 19, s. 10

  (2) Paragraphs 23(3)(a) to (d) of the Act are replaced by the following:

  • (a) an administration agreement in respect of the law is in effect;

  • (b) that administration agreement is between the council of the band and the government of the specified province listed opposite the name of that council in Schedule 2;

  • (c) the law is administered and enforced, and the direct sales tax imposed under that law is collected, in accordance with that administration agreement;

  • (d) the name of the band, the name of the council of the band, the name, or description, of the reserves of the band within which the law applies and the name of the specified province in which the reserves are situated are listed opposite one another in Schedule 2; and

  • (e) its parallel provincial law is in force.

Marginal note:2005, c. 19, s. 10

95. Section 24 of the Act is replaced by the following:

Marginal note:2005, c. 19, s. 10

96. Section 29 of the Act is replaced by the following:

Marginal note:2005, c. 19, s. 12

97. Schedule 2 to the Act is replaced by the Schedule 2 set out in Schedule 1 to this Act.

1994, c. 35Yukon First Nations Self-Government Act

• 98. (1) The Yukon First Nations Self-Government Act is amended by adding the following after section 22.

  Marginal note:Definitions

  • 22.1 (1) The following definitions apply in this section.

    “band”

    « bande »

    “band” has the same meaning as in section 2 of the Indian Act.

    “Indian”

    « Indien »

    “Indian” has the same meaning as in section 2 of the Indian Act.

    “reserve”

    « réserve »

    “reserve” has the same meaning as in section 2 of the Indian Act.

    “transition period”

    « période de transition »

    “transition period”, in respect of a first nation, means the period beginning on the day of the year on which the first nation’s final agreement is brought into effect and ending on December 31 of that year.

  • Marginal note:Taxation exemption — former reserves

    (2) During the transition period of a first nation, income of a band or an Indian, other than an Indian enrolled under a final agreement that came into effect before the calendar year that includes the transition period, is exempt from taxation under the Income Tax Act, if the situs of the income is on land of the first nation that was a reserve throughout the portion of that calendar year before the transition period.

  • Marginal note:Taxation exemption — Indians enrolled

    (3) During the transition period of a first nation, income of an Indian who is enrolled under the first nation’s final agreement and is resident in the Yukon is exempt from taxation under the Income Tax Act, if the situs of the income is on a reserve.

• (2) Subsection (1) is deemed to have come into force on January 1, 1999.

PART 5OTHER TAX-RELATED AMENDMENTS

2002, c. 9, s. 5Air Travellers Security Charge Act

• 99. (1) Subsection 21(2) of the Air Travellers Security Charge Act is replaced by the following:

  • Marginal note:Small amounts payable

    (2) If, at any time, the total of all amounts payable by the Minister to a designated air carrier under this Act does not exceed $2.00, the Minister may apply those amounts against any amount owing, at that time, by the carrier to Her Majesty. However, if the carrier, at that time, does not owe any amount to Her Majesty, those amounts payable are deemed to be nil.

• (2) Subsection (1) comes into force on April 1, 2007.