• 36. (1) Subparagraph 8506(1)(e)(iii) of the Regulations is replaced by the following:

  • (iii) the retirement benefits are payable to the beneficiary beginning no later than on the later of one year after the day of death of the member and the end of the calendar year in which the beneficiary attains 71 years of age;

• (2) The portion of paragraph 8506(2)(c.1) of the Regulations before subparagraph (i) is replaced by the following:

  • (c.1) no contribution is made under the provision with respect to a member, and no amount is transferred for the benefit of a member to the provision from another benefit provision of the plan, at any time after the calendar year in which the member attains 71 years of age, other than an amount that is transferred for the benefit of the member to the provision

• (3) Paragraph 8506(7)(b) of the Regulations is replaced by the following:

  • (b) that individual had not attained 71 years of age at the end of the preceding calendar year.

• (4) Subsections (1) to (3) apply after 2006.

2004, c. 26Canada Education Savings Act

• 37. (1) Subparagraph 5(2)(b)(i) of the Canada Education Savings Act is replaced by the following:

  • (i) $1,000, unless the particular year is any of 1998 to 2006, in which case, $800, and

• (2) Paragraph 5(3)(b) of the Act is replaced by the following:

  • (b) in any other case, determined by the formula

    $400A + $500B - C

    where

    A

    is the number of years after 1997 and before 2007 in which the beneficiary was alive, other than a year throughout which the beneficiary was

    • (i) an ineligible beneficiary in accord-ance with the regulations, or

    • (ii) not resident in Canada,

    B

    is the number of years after 2006 in which the beneficiary was alive, up to and including the particular year, other than a year throughout which the beneficiary was

    • (i) an ineligible beneficiary in accord-ance with the regulations, or

    • (ii) not resident in Canada, and

    C

    is the total of all CES grants paid before that time — other than those amounts paid under subsection (4) — in respect of contributions made in a preceding year in respect of the beneficiary.

SOR/2005-151Canada Education Savings Regulations

38. Paragraph 4(1)(d) of the Canada Education Savings Regulations is replaced by the following:

Coordinating Amendments

Marginal note:Bill C-33

39. Sections 40 to 42 apply if Bill C-33 (in those sections referred to as the “other Act”), introduced in the 1st session of the 39th Parliament and entitled Income Tax Amendments Act, 2006, receives royal assent.

• 40. (1) Subsection 104(24) of the Act, having been amended by subsection 8(4) of this Act and 23(8) of the other Act, is replaced by the following:

  • Marginal note:Amount payable

    (24) For the purposes of subparagraph 53(2)(h)(i.1), paragraph (c) of the definition “specified charity” in subsection 94(1), subsection 94(8) and subsections (6), (7), (7.01), (13), (16) and (20), an amount is deemed not to have become payable to a beneficiary in a taxation year unless it was paid in the year to the beneficiary or the beneficiary was entitled in the year to enforce payment of it.

  • (2) Subsection (1) applies in respect of taxation years of a trust that begin after 2006.

41. If the other Act is assented to on the same day as or after the day on which this Act is assented to, subsections 106(1) and (3) of the other Act are deemed to have come into force before subsections 9(1) and (16) of this Act.

• 42. (1) Subsection 249(1) of the Act, having been amended by subsection 188(1) of the other Act and subsection 29(1) of this Act, is replaced by the following:

  Definition of “taxation year”

  • 249. (1) Except as expressly otherwise provided in this Act, a “taxation year” is

    • (a) in the case of a corporation, a fiscal period;

    • (b) in the case of an individual (other than a testamentary trust), a calendar year;

    • (c) in the case of a testamentary trust, the period for which the accounts of the trust are made up for purposes of assessment under this Act; and

    • (d) in the case of a Canadian resident partnership, a fiscal period.

• (2) Subsection (1) is deemed to have come into force on October 31, 2006.

PART 2R.S., c. E-15AMENDMENTS TO THE EXCISE TAX ACT (OTHER THAN WITH RESPECT TO THE GOODS AND SERVICES TAX/HARMONIZED SALES TAX)

Marginal note:R.S., c. 7 (2nd Supp.), s. 34(1)

• 43. (1) Section 68 of the Excise Tax Act is replaced by the following:

  Marginal note:Payment where error

  • 68. (1) If a person, otherwise than pursuant to an assessment, has paid any moneys in error in respect of any goods, whether by reason of mistake of fact or law or otherwise, and the moneys have been taken into account as taxes, penalties, interest or other sums under this Act, an amount equal to the amount of the moneys shall, subject to this Part, be paid to the person if the person applies for the payment of the amount within two years after the payment of the moneys.

  • Marginal note:Exception

    (2) Subsection (1) does not apply if an application for a payment in respect of the goods can be made by any person under section 68.01.

  Marginal note:Payment for end-users — diesel fuel

  • 68.01 (1) If tax under this Act has been paid in respect of diesel fuel, the Minister may pay an amount equal to the amount of that tax

    • (a) in the case where a vendor delivers the diesel fuel to a purchaser

      • (i) to the vendor, if the vendor applies for the payment, the purchaser certifies that the diesel fuel is for use exclusively as heating oil and the vendor reasonably believes that the purchaser will use it exclusively as heating oil,

      • (ii) to the purchaser, if the purchaser applies for the payment, the purchaser uses the diesel fuel as heating oil and no application in respect of the diesel fuel can be made by the vendor under subparagraph (i); or

    • (b) to a purchaser who applies for the payment and who uses the diesel fuel to generate electricity, except if the electricity so generated is used primarily in the operation of a vehicle.

  • Marginal note:Payment for end-users — fuel used as ships’ stores

    (2) If tax under this Act has been paid in respect of fuel and no application is made in respect of the fuel by any person under section 68.17 or 70, the Minister may pay an amount equal to the amount of that tax to a purchaser who applies for the payment and who uses the fuel as ships’ stores.

  • Marginal note:Timing of application

    (3) No payment shall be made under this section unless

    • (a) the vendor described in subparagraph (1)(a)(i) applies for it within two years after the vendor sells the diesel fuel to the purchaser described in paragraph (1)(a); or

    • (b) the purchaser described in subparagraph (1)(a)(ii), paragraph (1)(b) or subsection (2) applies for it within two years after the purchase.

  • Marginal note:Conditions

    (4) The Minister is not required to make a payment under this section unless the Minister is satisfied that all the conditions for the payment have been met.

  • Marginal note:Deemed tax payable

    (5) If, under this section, the Minister pays an amount to a person to which that person is not entitled, or pays an amount to a person in excess of the amount to which that person is entitled, the amount of the payment or the excess is deemed to be a tax payable by that person under this Act on the day on which the Minister made the payment.

  Marginal note:Payment to end-users — specially equipped van

  • 68.02 (1) If tax under this Act has been paid in respect of a van to which section 6 of Schedule I applies, the Minister may pay an amount equal to the amount of the tax paid at the rate set out in that section

    • (a) if the van was manufactured or produced in Canada, to a person who is the first final consumer of the van if, at the time of the acquisition of the van by the person or within six months after that time, the van has been equipped with a device designed exclusively to assist in placing a wheelchair in the van without having to collapse the wheelchair; or

    • (b) if the van was imported, to a person who is the first final consumer of the van after the importation if, at the time of importation, the van was equipped with a device designed exclusively to assist in placing a wheelchair in the van without having to collapse the wheelchair.

  • Marginal note:Timing of application

    (2) No payment in respect of a van shall be made under this section unless the person to whom the payment can be made applies for it within two years after the person acquires the van.

  • Marginal note:Deemed tax payable

    (3) If, under this section, the Minister pays an amount to a person to which that person is not entitled, or pays an amount to a person in excess of the amount to which that person is entitled, the amount of the payment or the excess is deemed to be a tax payable by that person under this Act on the day on which the Minister made the payment.

• (2) Sections 68 and 68.01 of the Act, as enacted by subsection (1), are deemed to have come into force on September 3, 1985 except that, before March 20, 2007,

  • (a) subsection 68(2) of the Act, as enacted by subsection (1), shall be read as follows:

    • (2) Subsection (1) does not apply if an application for a payment in respect of the goods is made by any person under section 68.01.

  • (b) subparagraph 68.01(1)(a)(ii) of the Act, as enacted by subsection (1), shall be read as follows:

    • (ii) to the purchaser, if the purchaser applies for the payment, the purchaser uses the diesel fuel as heating oil and no application in respect of the diesel fuel is made by the vendor under subparagraph (i); or

• (3) Section 68.02 of the Act, as enacted by subsection (1), applies in respect of each van to which section 6 of Schedule I to the Act, as enacted by section 44 of this Act, applies.

• (4) If, before this Act is assented to, an application under section 68 of the Act has been made by a person who could have made an application under section 68.01 of the Act had that section been in force at that time, the application made under section 68 of the Act is deemed to have been made under subsection 68.01(1) or (2) of the Act, as the case may be.

• 44. (1) Section 6 of Schedule I to the Act is replaced by the following:

  • 6. (1) Automobiles (including station wag- ons, vans and sport utility vehicles) designed primarily for use as passenger vehicles but not including pickup trucks, vans equipped to accommodate 10 or more passengers, ambulances and hearses, at the following rates:

  • (a) $1,000, in the case of an automobile that has a weighted fuel consumption rating of 13 litres or more per 100 kilometres but less than 14 litres per 100 kilometres;

  • (b) $2,000, in the case of an automobile that has a weighted fuel consumption rating of 14 litres or more per 100 kilometres but less than 15 litres per 100 kilometres;

  • (c) $3,000, in the case of an automobile that has a weighted fuel consumption rating of 15 litres or more per 100 kilometres but less than 16 litres per 100 kilometres; and

  • (d) $4,000, in the case of an automobile that has a weighted fuel consumption rating of 16 litres or more per 100 kilometres.

  (2) For the purposes of subsection (1), the weighted fuel consumption rating of an automobile shall be the amount determined by the formula

  0.55A + 0.45B

  where

  A

  is the city fuel consumption rating (based on the number of litres of fuel, other than E85, per 100 kilometres) for automobiles of the same model with the same attributes as the automobile, as determined by reference to data published by the Government of Canada under the EnerGuide mark, or, if no rating can be so determined that would apply to the automobile, by reference to the best available data, which may include the city fuel consumption rating for the most similar model and attributes; and

  B

  is the highway fuel consumption rating (based on the number of litres of fuel, other than E85, per 100 kilometres) for automobiles of the same model with the same attributes as the automobile, as determined by reference to data published by the Government of Canada under the EnerGuide mark, or, if no rating can be so determined that would apply to the automobile, by reference to the best available data, which may include the highway fuel consumption rating for the most similar model and attributes.

• (2) Subsection (1) applies to each automobile delivered by a manufacturer or producer to a purchaser after March 19, 2007, and each automobile imported into Canada after that day unless the automobile had been put into service before March 20, 2007, but does not apply to an automobile for which an agreement in writing has been entered into before March 20, 2007 between a person in the business of selling vehicles to consumers and a final consumer, and for which possession is taken by the final consumer before October 2007.

PART 3AMENDMENTS IN RESPECT OF THE GOODS AND SERVICES TAX/HARMONIZED SALES TAX

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

• 45. (1) Section 234 of the Excise Tax Act is amended by adding the following after subsection (2):

  • Marginal note:Late filing of information and adjustment for failure to file

    (2.1) If a registrant is required to file prescribed information in accordance with subsection 252.1(10) or 252.4(5) in respect of an amount claimed as a deduction under subsection (2) in respect of an amount paid or credited on account of a rebate,

    • (a) in the case where the registrant files the information on a day (in this subsection referred to as the “filing day”) that is after the day on or before which the registrant is required to file its return under Division V for the reporting period in which the registrant claimed the deduction under subsection (2) in respect of the amount paid or credited and before the particular day that is the earlier of

      • (i) the day that is four years after the day on or before which the registrant was required under section 238 to file a return for the period, and

      • (ii) the day stipulated by the Minister in a demand to file the information,

      the registrant shall, in determining the net tax for the reporting period of the registrant that includes the filing day, add an amount equal to interest, at the prescribed rate, on the amount claimed as a deduction under subsection (2) computed for the period beginning on the day on or before which the registrant was required to file the prescribed information under subsection 252.1(10) or 252.4(5) and ending on the filing day; and

    • (b) in the case where the registrant fails to file the information before the particular day, the registrant shall, in determining the net tax for the reporting period of the registrant that includes the particular day, add an amount equal to the total of the amount claimed as a deduction under subsection (2) and interest, at the prescribed rate, on that amount computed for the period beginning on the day on or before which the registrant was required to file the information under subsection 252.1(10) or 252.4(5) and ending on the day on or before which the registrant is required under section 238 to file a return for the reporting period of the registrant that includes the particular day.

• (2) Subsection (1) applies in respect of any amount claimed as a deduction under subsection 234(2) of the Act in respect of an amount that is paid to, or credited in favour of, a person after March 2007 and that relates to a supply for which tax under Part IX of the Act becomes payable after March 2007.

Marginal note:1993, c. 27, s. 107(1); 1997, c. 10, s. 58(1)

• 46. (1) The portion of subsection 252(1) of the Act before paragraph (c) is replaced by the following:

  Marginal note:Non-resident rebate in respect of exported goods

  • 252. (1) If a non-resident person is the recipient of a supply of tangible personal property acquired by the person for use primarily outside Canada, the person is not a consumer of the property, the property is not

    • (a) excisable goods, or

• (2) Subsection (1) applies to any supply of property in respect of which tax under Part IX of the Act becomes payable after March 2007.

Marginal note:1997, c. 10, s. 59(2); 2000, c. 30, s. 68(2)

• 47. (1) Subsection 252.1(2) of the Act is replaced by the following:

  • Marginal note:Accommodation rebate for tour packages

    (2) If

    • (a) a non-resident person is the recipient of a supply made by a registrant of a tour package that includes short-term accommodation or camping accommodation,

    • (b) the tour package is acquired by the person otherwise than for supply in the ordinary course of a business of the person of making such supplies, and

    • (c) the accommodation is made available to a non-resident individual,

    the Minister shall, subject to subsection (8) and section 252.2, pay a rebate to the person equal to the tax paid by the person in respect of the accommodation.

• Marginal note:1993, c. 27, s. 107(1); 1997, c. 10, s. 59(3)

  (2) The portion of subsection 252.1(3) of the Act after paragraph (a) is replaced by the following:

  • (b) if the supply is a supply of a tour package, the tour package is acquired by the person for supply in the ordinary course of a business of the person of making supplies of tour packages,

  • (b.1) if the supply is a supply of accommodation, the accommodation is acquired by the person in the ordinary course of a business of the person for the purpose of making a supply (in this subsection referred to as the “subsequent supply”) of a tour package that includes the accommodation,

  • (c) a supply of the tour package or the subsequent supply is made to another non-resident person and payment of the consideration for the supply of the tour package or the subsequent supply, as the case may be, is made at a place outside Canada at which the supplier, or an agent of the supplier, is conducting business, and

  • (d) the accommodation is made available to a non-resident individual,

  the Minister shall, subject to subsection (8) and section 252.2, pay a rebate to the particular person equal to the tax paid by the particular person in respect of the accommodation.

• Marginal note:2000, c. 30, s. 68(4)

  (3) Subsection 252.1(4) of the Act is repealed.

• Marginal note:1993, c. 27, s. 107(1); 1997, c. 10, s. 59(6)F; 2000, c. 30, s. 68(7)

  (4) The descriptions of A and B in paragraph 252.1(5)(a) of the Act are replaced by the following:

  A

  is the total number of nights for which short-term accommodation included in that tour package is made available in Canada under the agreement for the supply, and

  B

  is the total number of nights for which camping accommodation included in that tour package is made available in Canada under the agreement for the supply; and

• Marginal note:2000, c. 30, s. 68(8)

  (5) The description of C in paragraph 252.1(5)(b) of the Act is replaced by the following:

  C

  is the total number of nights for which short-term accommodation, or camping accommodation, included in that tour package is made available in Canada under the agreement for the supply of that tour package,

• Marginal note:2000, c. 30, s. 68(9)

  (6) Subsection 252.1(6) of the Act is repealed.

• Marginal note:1993, c. 27, s. 107(1); 2000, c. 30, s. 68(10)

  (7) The portion of subsection 252.1(8) of the Act before paragraph (b) is replaced by the following:

  • Marginal note:Rebate paid by registrant

    (8) If

    • (a) a registrant makes a supply of a tour package that includes short-term accommodation or camping accommodation to a non-resident recipient who either is an individual or is acquiring the tour package for use in the course of a business of the recipient or for supply in the ordinary course of a business of the recipient of making supplies of tour packages,

• Marginal note:1993, c. 27, s. 107(1); 2000, c. 30, s. 68(11)

  (8) Paragraph 252.1(8)(c) of the Act is replaced by the following:

  • (c) the amount paid or credited is equal to the amount that would be determined in respect of the supply under paragraph (5)(b), and

• Marginal note:1993, c. 27, s. 107(1)

  (9) The portion of subparagraph 252.1(8)(d)(ii) of the Act before clause (A) is replaced by the following:

  • (ii) if the supply of the tour package includes the short-term accommodation or camping accommodation and also includes other property or services (other than meals or property or services that are provided or rendered by the person who provides the accommodation and in connection with it), a deposit of at least 20% of the total consideration for the tour package is paid

• (10) Section 252.1 of the Act is amended by adding the following after subsection (9):

  • Marginal note:Filing of information

    (10) If, in accordance with subsection (8), a registrant

    • (a) pays to, or credits in favour of, a person an amount on account of a rebate, and

    • (b) in determining the registrant’s net tax for a reporting period, claims a deduction under subsection 234(2) in respect of the amount paid or credited,

    the registrant shall file with the Minister prescribed information in respect of the amount in prescribed form and in prescribed manner on or before the day on or before which the registrant’s return under Division V for the reporting period in which the amount is deducted is required to be filed.

• (11) Subsections (1) to (9) apply in respect of any supply of short-term accommodation, camping accommodation or a tour package that includes short-term accommodation or camping accommodation, for which accommodation is first made available after March 2007, unless

  • (a) the accommodation is not included in a tour package, is first made available before April 2009 and is supplied under an agreement in writing entered into before September 25, 2006; or

  • (b) the accommodation is included in a tour package, the first night of accommodation in Canada included in the tour package is made available before April 2009 and the tour package is supplied under an agreement in writing entered into before September 25, 2006.

• (12) Subsection (10) applies in respect of any supply of a tour package

  • (a) for which tax under Part IX of the Act becomes payable after March 2007; and

  • (b) for which the supplier claimed an amount as a deduction under subsection 234(2) of the Act in respect of an amount that the supplier paid to, or credited in favour of, a non-resident person after March 2007.