• Marginal note:Release of information

  (2) Any information obtained by or on behalf of the Minister in the course of the administration or enforcement of this Act or the regulations or the carrying out of an agreement entered into under section 11 may be communicated to any person if it can reasonably be regarded as necessary for the purposes of the administration or enforcement of this Act, the Income Tax Act, the Canada Disability Savings Act or the Canada Education Savings Act or a program administered under an agreement entered into under section 12 of the Canada Education Savings Act.

PART IVTRANSFER PAYMENTS WITH RESPECT TO THE ELIMINATION OF PROVINCIAL CAPITAL TAXES

Definition of “capital tax”

9. In this Part, “capital tax” means a tax that is imposed on one or more of the following:

• (a) an element of shareholders’ equity in a corporation such as share capital or retained earnings;

• (b) a form of long-term indebtedness owed by a corporation; or

• (c) any other element of capital that the Minister considers appropriate.

It does not include

• (d) a tax imposed under Part VI.1 of the Taxation Act, R.S.Q., c. I-3;

• (e) a tax imposed under section 74.1 of the Corporations Tax Act, R.S.O. 1990, c. C-40; or

• (f) any tax that the Minister does not consider to be sufficiently similar to a tax imposed under Part I.3 or VI of the Income Tax Act.

Marginal note:Incentive to eliminate capital taxes

• 10. (1) As an incentive for a province to eliminate capital taxes imposed by the province, the province is eligible to receive a payment under this Part if

  • (a) before January 2, 2011, it eliminates a capital tax that is imposed under a law of the province that was in force on March 18, 2007; and

  • (b) any legislation that is required to give effect to the elimination is enacted after March 18, 2007 and before January 2, 2011.

• Marginal note:Meaning of elimination

  (2) For the purposes of this Part, a capital tax is considered to be eliminated if

  • (a) under the law of the province, the tax ceases before January 2, 2011 to be imposed on all corporations, except that the tax may continue to be imposed on any corporation that is exempt from tax under any of paragraphs 149(1)(d) to (d.4) of the Income Tax Act on all of its taxable income; or

  • (b) in the case where the tax is imposed only on financial institutions, the law under which the tax is imposed is amended, before January 2, 2011, to replace the tax with a new capital tax imposed only on financial institutions that meets the following criteria:

    • (i) no financial institution becomes subject to the new capital tax that was not subject to the replaced tax,

    • (ii) every financial institution on which the new capital tax is imposed must be permitted to reduce the amount of the new capital tax payable by it for a taxation year by the amount of income tax payable by it to the province for the year and, if the amount of income tax so payable exceeds the amount of the new capital tax so payable, the financial institution must be permitted to apply the amount of the excess to reduce capital tax payable by it in other taxation years in a manner satisfactory to the Minister, and

    • (iii) the Minister is satisfied that the total amount of revenue that would be raised by the new capital tax from financial institutions if there were no reduction for income tax payable is intended to be broadly commensurate with the total amount of revenue raised from those financial institutions by the province’s income tax.

• Marginal note:Separate capital tax

  (3) If a province imposes a capital tax that applies to financial institutions as well as corporations that are not financial institutions, the capital tax is deemed to be two separate capital taxes for the purposes of this Part.

Marginal note:Amount of payment

• 11. (1) The amount that a province may be eligible to receive, in respect of a period fixed by the Minister, is equal to 17% of the estimated foregone revenue for that period.

• Marginal note:Preliminary payment

  (2) A province is eligible to receive a preliminary payment for a period if the province has provided information in accordance with section 12.01 such that the Minister is able to make a preliminary determination of the estimated foregone revenue for that period. The Minister shall try to make a preliminary payment to the province on or before the last day of the period if the Minister receives the information in a timely manner.

• Marginal note:Final determination

  (3) After finalized information that is consistent with a province’s public accounts becomes available so as to enable the Minister to make a final determination of the amount under subsection (1) in respect of a period, the Minister shall do so and reconcile the final determination with any preliminary payment paid to the province. If the amount of the final determination is greater than the preliminary payment, the Minister shall, without delay, pay the difference to the province. However, if the amount of the final determination is less than the preliminary payment, the difference may be deducted from any amount payable to the province under this Act or be recovered from the province as a debt due to Her Majesty in right of Canada.

• Marginal note:Program time limit

  (4) For the purposes of determining the amount of a payment under this Part, a period shall not include a day that is before March 19, 2007 or after January 1, 2011.

• Marginal note:Consolidated Revenue Fund

  (5) The Minister may pay to a province, out of the Consolidated Revenue Fund, any amount that the province is eligible to receive under this Part.

Marginal note:Estimated foregone revenue

• 12. (1) Except where subsection (2) applies, the estimated foregone revenue for a province in respect of a period is the amount, as determined by the Minister, by which

  • (a) the estimated base revenue, determined as the estimated amount of revenue in respect of a specific capital tax that the province would have received in respect of the period from corporations that would have been subject to tax under Part I of the Income Tax Act under the laws of the province as they read on March 18, 2007, including any enactment that would be applicable to the period but that had not come into force on or before that date,

  exceeds

  • (b) the estimated actual revenue, determined as the estimated amount of revenue in respect of the capital tax that the province receives in respect of the period from corporations that are subject to tax under Part I of the Income Tax Act.

• Marginal note:Estimated foregone revenue — capital tax on financial institutions

  (2) In the case of a capital tax that has been eliminated as described in paragraph 10(2)(b), the estimated foregone revenue for a province in respect of a period is the amount determined by the Minister to be the estimated amount of revenue in respect of the capital tax that the province would have received in respect of the period from financial institutions that would have been subject to tax under Part I of the Income Tax Act under the laws of the province as they read on March 18, 2007, including any enactment that would be applicable to the period but that had not come into force on or before that date.

Marginal note:Provision of information

• 12.01 (1) No payment may be made to a province under this Part unless the province provides to the Minister all of the information that the Minister considers necessary for the determination of the amount of that payment in accordance with this Part.

• Marginal note:Certification by Minister of province

  (2) All information provided by a province shall be of the best quality that is available at the time it is provided and shall be certified as such by an appropriate minister of the provincial government.

Phased Retirement Benefit

Marginal note:Definitions

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

  “phased retirement benefit”

  « prestation de retraite progressive »

  “phased retirement benefit” means a pension benefit that is equal to a portion of the immediate pension benefit to which a person is entitled under subsection 16(1) or which they are eligible to receive under subsection 16(2).

  “phased retirement period”

  « période de retraite progressive »

  “phased retirement period” means the period in respect of which the phased retirement benefit is to be paid.

• Marginal note:Phased retirement benefit

  (2) A pension plan may provide for the payment of a phased retirement benefit.

• Marginal note:Conditions

  (3) A phased retirement benefit is only to be paid to a person if

  • (a) the person enters into a written agreement with an employer who contributes to the pension plan from which the phased retirement benefit is to be paid, or with a prescribed administrator, that evidences their consent to its payment;

  • (b) in the case of a person who was receiving a joint and survivor pension benefit prior to the phased retirement period, the person’s spouse or common-law partner who would receive that joint and survivor pension benefit on the death of the person consents in writing to the cessation of the payment of the joint and survivor pension benefit;

  • (c) the employer provides a copy of the agreement referred to in paragraph (a) to the administrator of the pension plan from which the phased retirement benefit is to be paid;

  • (d) the person accrues a pension benefit during the phased retirement period under circumstances to which subsection 8503(19) of the Income Tax Regulations applies; and

  • (e) the pension plan from which the phased retirement benefit is to be paid has not been terminated.

• Marginal note:Rules — during phased retirement period

  (4) During a phased retirement period

  • (a) the person is deemed to be a member;

  • (b) subsection 2(3) does not apply and the person is deemed not to be receiving an immediate pension benefit;

  • (c) the administrator of the pension plan from which the phased retirement benefit is to be paid shall not pay the immediate pension benefit to which the person would otherwise be entitled under subsection 16(1) or which they would otherwise be eligible to receive under subsection 16(2);

  • (d) paragraph 18(1)(b) and subsections 36(1) and (4) do not apply to an agreement or arrangement that may be entered into for the payment of the phased retirement benefit;

  • (e) section 21 does not apply to the calculation of the phased retirement benefit;

  • (f) section 22 does not apply to the phased retirement benefit; and

  • (g) in the case of a person who, prior to the phased retirement period, was receiving an immediate pension benefit from the pension plan from which the phased retirement benefit is to be paid, the administrator of that pension plan shall not pay the immediate pension benefit and an election that was made under subsection 22(5) is void unless it was made under provincial property law within the meaning of subsection 25(1).

• Marginal note:Rules — after phased retirement period

  (5) At the end of a phased retirement period

  • (a) the pension benefit accrued during the phased retirement period is to be treated as vested without regard to conditions as to age, period of membership in the pension plan or period of employment;

  • (b) the immediate pension benefit to which the person is entitled under subsection 16(1) or which they are eligible to receive under subsection 16(2) is, unless otherwise prescribed, to be calculated without regard to the amount of the phased retirement benefit received;

  • (c) an election under subsection 22(5) that is void under paragraph (4)(g) remains void;

  • (d) subsection 26(2) applies as if it contained no reference to “but before the commencement of payment of a pension benefit”; and

  • (e) in the case of a phased retirement period that ends as a result of the death of a person,

    • (i) the person is deemed to have retired for purposes of the survivor benefit,

    • (ii) the person is deemed to have been entitled to the joint and survivor pension benefit payable pursuant to section 22, without regard to subsection 22(5), in respect of the immediate pension benefit to which the person would otherwise be entitled under subsection 16(1) or which they would otherwise be eligible to receive under subsection 16(2), and

    • (iii) subsections 23(5) to (7) apply.

• (k.1) respecting phased retirement benefits;

“pipeline”

« pipeline »

“pipeline” means any pipe or any system or arrangement of pipes by which oil, gas or any substance, including water, incidental to the drilling for or production of oil or gas is conveyed from any well-head or other place at which it is produced to any other place, or from any place where it is stored, processed or treated to any other place, and includes all property of any kind used for the purpose of, or in connection with or incidental to, the operation of a pipeline in the gathering, transporting, handling and delivery of the oil, gas or substance and, without restricting the generality of the foregoing, includes offshore installations or vessels, tanks, surface reservoirs, pumps, racks, storage and loading facilities, compressors, compressor stations, pressure measuring and controlling equipment and fixtures, flow controlling and measuring equipment and fixtures, metering equipment and fixtures, and heating, cooling and dehydrating equipment and fixtures, but does not include any pipe or any system or arrangement of pipes that constitutes a distribution system for the distribution of gas to ultimate consumers;