Bill C-59: An Act to implement certain provisions of the fall economic statement tabled in Parliament on November 21, 2023 and certain provisions of the budget tabled in Parliament on March 28, 2023

Short Title Short title 1 This Act may be cited as the Fall Economic Statement Implementation Act, 2023 . PART 1 Amendments to the Income Tax Act and to Other Legislation R.S., c. 1 (5th Supp.) Income Tax Act 2 (1) Subsection 12(1) of the Income Tax Act is amended by adding the following after paragraph (l.1): Partnership — interest and financing expenses add back (l.2) the amount determined by the formula A × B where A is the total of all amounts each of which is an amount determined under paragraph (h) of the description of A in the definition interest and financing expenses in subsection 18.2(1) in respect of the taxpayer for the taxation year, and B is (i) if the taxpayer is an excluded entity for the year (as defined in subsection 18.2(1)), nil, and (ii) in any other case, the proportion determined under the first formula in subsection 18.2(2) in respect of the taxpayer for the year; (2) Paragraph 12(1)(n.3) of the Act is replaced by the following: Retirement compensation arrangement (n.3) the total of all amounts received by the taxpayer in the year in the course of a business out of or under a retirement compensation arrangement (including amounts received in respect of the arrangement under subsection 207.71(3)) to which the taxpayer, another person who carried on a business that was acquired by the taxpayer, or any person with whom the taxpayer or that other person does not deal at arm’s length, has contributed an amount that was deductible under paragraph 20(1)(r) in computing the contributor’s income for a taxation year; (3) Paragraph 12(1)(t) of the Act is replaced by the following: Investment tax credit (t) the amount deducted under subsection 127(5) or (6) or 127.44(3) in respect of a property acquired or an expenditure made in a preceding taxation year in computing the taxpayer’s tax payable for a preceding taxation year to the extent that it was not included in computing the taxpayer’s income for a preceding taxation year under this paragraph or is not included in an amount determined under paragraph 13(7.1)(e) or 37(1)(e), subparagraph 53(2)(c)(vi), (c)(vi.1) or (h)(ii) or for I in the definition undepreciated capital cost in subsection 13(21) or L in the definition cumulative Canadian exploration expense in subsection 66.1(6); (4) Paragraph 12(1)(t) of the Act, as enacted by subsection (3), is replaced by the following: Investment tax credit (t) the amount deducted under subsection 127(5) or (6), 127.44(3) or 127.45(6) in respect of a property acquired or an expenditure made in a preceding taxation year in computing the taxpayer’s tax payable for a preceding taxation year to the extent that it was not included in computing the taxpayer’s income for a preceding taxation year under this paragraph or is not included in an amount determined under paragraph 13(7.1)(e) or 37(1)(e), subparagraph 53(2)(c)(vi) to (c)(vi.2) or (h)(ii) or for I in the definition undepreciated capital cost in subsection 13(21) or L in the definition cumulative Canadian exploration expense in subsection 66.1(6); (5) Subsection 12(2.02) of the Act is replaced by the following: Source of income (2.02) For the purposes of this Act, if a particular amount is included in computing the income of a taxpayer for a taxation year because of paragraph (1)(l.1) or (l.2) and the particular amount is in respect of another amount that is deductible by a partnership in computing its income from a particular source or from sources in a particular place, the particular amount is deemed to be from the particular source or from sources in the particular place, as the case may be. (6) The definition investment contract in subsection 12(11) of the Act is amended by adding the following after paragraph (d.1): (d.2) a FHSA, (7) Subsections (1) and (5) apply in respect of taxation years of a taxpayer that begin on or after October 1, 2023. However, subsections (1) and (5) also apply in respect of a taxation year of a taxpayer that begins before, and ends after, October 1, 2023 if (a) any of the taxpayer’s three immediately preceding taxation years was, because of a transaction or event or a series of transactions or events, shorter than it would have been in the absence of that transaction, event or series; and (b) it can reasonably be considered that one of the purposes of the transaction, event or series was to defer the application of paragraph 12(1)(l.2) of the Act, as enacted by subsection (1), or the application of section 18.2 or 18.21 of the Act, as enacted by subsection 7 (1), to the taxpayer. (8) Subsection (2) applies to the 2024 and subsequent taxation years. (9) Subsection (3) is deemed to have come into force on January 1, 2022. (10) Subsection (4) is deemed to have come into force on March 28, 2023. (11) Subsection (6) is deemed to have come into force on April 1, 2023. 3 (1) The Act is amended by adding the following after section 12.6: Hybrid mismatch arrangements — definitions 12.7 (1) The definitions in subsection 18.4(1) apply in this section. Secondary rule — conditions for application (2) Subsection (3) applies in respect of a payment of which a taxpayer is a recipient if (a) the payment arises under a hybrid mismatch arrangement; and (b) there is a foreign deduction component of the hybrid mismatch arrangement. Secondary rule — consequences (3) Subject to subsection 18.4(5), if this subsection applies in respect of a payment of which a taxpayer is a recipient, an amount equal to the hybrid mismatch amount in respect of the payment shall be (a) included in computing the taxpayer’s income from the same source as the payment; and (b) included in computing the taxpayer’s income for the last taxation year of the taxpayer that begins at or before the end of the first foreign taxation year of any entity in which an amount in respect of the payment, in the absence of any foreign expense restriction rule, would be — or would reasonably be expected to be — deductible in computing relevant foreign income or profits of the entity. (2) Subsection (1) applies in respect of payments arising on or after July 1, 2022, except that subsection 12.7(3) of the Act, as enacted by subsection (1), does not apply to the portion of a payment that (a) arises because of subsection 18.4(9) of the Act, as enacted by subsection 8 (1); and (b) relates to the portion of a notional interest expense that is computed in respect of a period of time that precedes January 1, 2023. 4 (1) The portion of subsection 13(7.1) of the Act before paragraph (a) is replaced by the following: Deemed capital cost of certain property (7.1) For the purposes of this Act, where section 80 applied to reduce the capital cost to a taxpayer of a depreciable property or a taxpayer deducted an amount under subsection 127(5) or (6) or 127.44(3) in respect of a depreciable property or received or is entitled to receive assistance from a government, municipality or other public authority in respect of, or for the acquisition of, depreciable property, whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or as any other form of assistance other than (2) The portion of subsection 13(7.1) of the Act before paragraph (a), as enacted by subsection (1), is replaced by the following: Deemed capital cost of certain property (7.1) For the purposes of this Act, where section 80 applied to reduce the capital cost to a taxpayer of a depreciable property or a taxpayer deducted an amount under subsection 127(5) or (6), 127.44(3) or 127.45(6) in respect of a depreciable property or received or is entitled to receive assistance from a government, municipality or other public authority in respect of, or for the acquisition of, depreciable property, whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or as any other form of assistance other than (3) Paragraph 13(7.1)(e) of the Act is replaced by the following: (e) where the property was acquired in a taxation year ending before the particular time, all amounts deducted under subsection 127(5) or (6) or 127.44(3) by the taxpayer for a taxation year ending before the particular time, (4) Paragraph 13(7.1)(e) of the Act, as enacted by subsection (3), is replaced by the following: (e) where the property was acquired in a taxation year ending before the particular time, all amounts deducted under subsection 127(5) or (6), 127.44(3) or 127.45(6) by the taxpayer for a taxation year ending before the particular time, (5) Section 13 of the Act is amended by adding the following after subsection (7.5): Capital expenditures — Classes 59 and 60 (7.6) If a taxpayer has incurred an expenditure on account of capital, and the amount of the expenditure would have been included in the taxpayer’s undepreciated capital cost of property included in Class 59 or 60 of Schedule II to the Income Tax Regulations if the taxpayer had acquired a property as a result of the expenditure, then the taxpayer is deemed to have acquired a property, included in Class 59 or 60, as the case may be, at a cost equal to the amount of the expenditure, at the time that the expenditure is incurred. (6) The description of I in the definition undepreciated capital cost in subsection 13(21) of the Act is replaced by the following: I is the total of all amounts deducted under subsection 127(5) or (6) or 127.44(3), in respect of a depreciable property of the class of the taxpayer, in computing the taxpayer’s tax payable for a taxation year ending before that time and subsequent to the disposition of that property by the taxpayer, (7) The description of I in the definition undepreciated capital cost in subsection 13(21) of the Act, as enacted by subsection (6), is replaced by the following: I is the total of all amounts deducted under subsection 127(5) or (6), 127.44(3) or 127.45(6), in respect of a depreciable property of the class of the taxpayer, in computing the taxpayer’s tax payable for a taxation year ending before that time and subsequent to the disposition of that property by the taxpayer, (8) The portion of paragraph 13(24)(a) of the Act before subparagraph (i) is replaced by the following: (a) subject to paragraph (b), for the purposes of the description of A in the definition undepreciated capital cost in subsection (21) and of sections 127, 127.1 and 127.44, the property is deemed (9) The portion of paragraph 13(24)(a) of the Act before subparagraph (i), as enacted by subsection (8), is replaced by the following: (a) subject to paragraph (b), for the purposes of the description of A in the definition undepreciated capital cost in subsection (21) and of sections 127, 127.1, 127.44 and 127.45, the property is deemed (10) Subsections (1), (3), (5), (6) and (8) are deemed to have come into force on January 1, 2022. (11) Subsections (2), (4), (7) and (9) are deemed to have come into force on March 28, 2023. 5 (1) Section 15 of the Act is amended by adding the following after subsection (2.5): When s. 15(2) not to apply — employee ownership trusts (2.51) Subsection (2) does not apply to a loan made or a debt that arose in respect of a qualifying business transfer if (a) immediately following the qualifying business transfer, (i) the lender or creditor is a qualifying business, and (ii) the borrower is the employee ownership trust that controls the qualifying business described in subparagraph (i); (b) the sole purpose of the loan or the debt is to facilitate the qualifying business transfer; and (c) at the time the loan was made or the debt incurred, bona fide arrangements were made for repayment of the loan or debt within 15 years of the qualifying business transfer. (2) Subsection (1) applies in respect of transactions that occur on or after January 1, 2024. 6 (1) The portion of subsection 18(4) of the Act before paragraph (a) is replaced by the following: Limitation on deduction of interest (4) Notwithstanding any other provision of this Act (other than subsection (8)), in computing the income for a taxation year of a corporation or a trust from a business (other than the Canadian banking business of an authorized foreign bank) or property, no deduction shall be made in respect of that proportion of any amount that would, in the absence of this subsection and section 18.2, be deductible in computing that income in respect of interest paid or payable by it on outstanding debts to specified non-residents that (2) Subsection (1) applies in respect of taxation years of a taxpayer that begin on or after October 1, 2023. However, subsection (1) also applies in respect of a taxation year that begins before, and ends after, October 1, 2023 if (a) any of the taxpayer’s three immediately preceding taxation years was, because of a transaction or event or a series of transactions or events, shorter than it would have been in the absence of that transaction, event or series; and (b) it can reasonably be considered that one of the purposes of the transaction, event or series was to defer the application of paragraph 12(1)(l.2) of the Act, as enacted by subsection 2 (1), or the application of section 18.2 or 18.21 of the Act, as enacted by subsection 7 (1), to the taxpayer. 7 (1) The Act is amended by adding the following after section 18.1: Definitions 18.2 (1) The following definitions apply in this section and section 18.21. absorbed capacity  of a taxpayer for a taxation year means the lesser of (a) the taxpayer’s cumulative unused excess capacity for the year, determined as if the taxpayer’s absorbed capacity for the year were nil, and (b) the amount determined by the formula A − (B + C) where A is the taxpayer’s interest and financing expenses for the year, B is (i) if subsection 18.21(2) applies in respect of the taxpayer for the year, the amount determined in respect of the taxpayer for the year under that subsection, and (ii) in any other case, the amount determined by the formula D × E where D is the taxpayer’s ratio of permissible expenses for the year, and E is the taxpayer’s adjusted taxable income for the year, and C is the taxpayer’s interest and financing revenues for the year. ( capacité absorbée ) adjusted taxable income  of a taxpayer for a taxation year means the amount determined by the formula A + B − C where A is the positive or negative amount determined by the formula D − E where D is (a) if the taxpayer is non-resident, the taxpayer’s taxable income earned in Canada for the year (determined without regard to subsection (2) and paragraphs 12(1)(l.2) and 111(1)(a.1)), and (b) in any other case, the taxpayer’s taxable income for the year (determined without regard to subsection (2), paragraphs 12(1)(l.2) and 111(1)(a.1) and clause 95(2)(f.11)(ii)(D)), and E is the total of (a) the taxpayer’s non-capital loss for the year (determined without regard to subsection (2), paragraphs 12(1)(l.2) and 111(1)(a.1) and clause 95(2)(f.11)(ii)(D)), and (b) the total of all amounts each of which is, in respect of a corporation that is a controlled foreign affiliate of the taxpayer at the end of an affiliate taxation year ending in the year — or a controlled foreign affiliate of a partnership, of which the taxpayer or a controlled foreign affiliate of the taxpayer is a member, at the end of an affiliate taxation year ending in a fiscal period of the partnership — an amount determined by the formula T × U ÷ V where T is the lesser of (i) the affiliate’s foreign accrual property loss (determined without regard to clause 95(2)(f.11)(ii)(D)) for the affiliate taxation year, and (ii) the amount by which the affiliate’s relevant affiliate interest and financing expenses for the affiliate taxation year exceeds the affiliate’s relevant affiliate interest and financing revenues for the affiliate taxation year, U is the amount that is included in the taxpayer’s interest and financing expenses for the year in respect of the affiliate’s relevant affiliate interest and financing expenses for the affiliate taxation year, and V is the affiliate’s relevant affiliate interest and financing expenses for the affiliate taxation year; B is the total of all amounts (subject to paragraph (k), other than an amount that can reasonably be considered to be in respect of exempt interest and financing expenses) each of which is (a) the taxpayer’s interest and financing expenses for the year, (b) an amount deducted by the taxpayer in computing its income for the year under paragraph 20(1)(a) or 59.1(a) or subsection 66(4), 66.1(2) or (3), 66.2(2), 66.21(4), 66.4(2) or 66.7(1), (2), (2.3), (3), (4) or (5), other than any portion of that amount that is described in subparagraph (c)(ii) of the description of A in the definition interest and financing expenses , (c) an amount deducted by the taxpayer in computing its income for the year under subsection 20(16), other than any portion of that amount that is described in paragraph (d) of the description of A in the definition interest and financing expenses , (d) in respect of the income or loss of a partnership, for a fiscal period that ends in the year, from any source or from sources in a particular place, an amount determined by the formula F × G − H where F is the total of all amounts, each of which is an amount deducted by the partnership under paragraph 20(1)(a) or subsection 20(16) in computing its income or loss from the source, or the source in a particular place, for the fiscal period, other than any portion of that amount that is described in subparagraph (c)(ii) of the description of A in the definition interest and financing expenses , G is the taxpayer’s specified proportion, if the references in the definition specified proportion in subsection 248(1) to “total income or loss” were read as “income or loss from the source, or the source in a particular place”, and H is the portion of an amount referred to in the description of F that can reasonably be considered to not be deductible in computing the taxpayer’s income for the year, or to not be included in computing the taxpayer’s non-capital loss for the year, because of subsection 96(2.1), (e) the portion of an amount deducted under paragraph 111(1)(e) for the year, in respect of a partnership of which the taxpayer is a member, that can reasonably be considered to be attributable to an amount referred to in the description of H in paragraph (d) in respect of a fiscal period of the partnership ending in a preceding taxation year of the taxpayer, (f) an amount deducted by the taxpayer under paragraph 110(1)(k) in computing its taxable income for the year, (g) an amount deducted by the taxpayer under subsection 104(6) in computing its income for the year, except to the extent of any portion of the amount that has been designated under subsection 104(19) for the year, (h) an amount determined by the formula I × J ÷ K where I is the amount deducted by the taxpayer under paragraph 111(1)(a) in computing its taxable income for the year, in respect of the taxpayer’s non-capital loss (other than a specified pre-regime loss of the taxpayer in respect of the year) for another taxation year (referred to in this paragraph as the “taxpayer loss year”), J is the lesser of (i) the non-capital loss for the taxpayer loss year, and (ii) the amount determined by the formula W − X − Y where W is the total of all amounts, each of which is an amount that is (A) the interest and financing expenses of the taxpayer for the taxpayer loss year, determined without regard to any amount or portion of an amount that is not deductible because of subsection (2) or clause 95(2)(f.11)(ii)(D), (B) described in any of paragraphs (b) to (g) or (j) to (m) of the description of B for the taxpayer loss year, or (C) deducted by the taxpayer under paragraph 111(1)(a.1) in computing its taxable income for the taxpayer loss year, X is the total of all amounts, each of which is an amount (A) described in any of paragraphs (a) to (f), (h) or (j) of the description of C for the taxpayer loss year, or (B) included in the income of the taxpayer for the taxpayer loss year by reason of paragraph 12(1)(l.2), and Y is the total of all amounts, each of which is an amount determined by the formula Z × Z.1 ÷ Z.2 where Z is the lesser of (A) the foreign accrual property loss, for an affiliate taxation year, of a corporation (referred to throughout the description of Y as the “affiliate”) that, at the end of the affiliate taxation year, is a controlled foreign affiliate of the taxpayer, or is a controlled foreign affiliate of a partnership of which the taxpayer or a controlled foreign affiliate of the taxpayer is a member at any time, and (B) the amount by which the affiliate’s relevant affiliate interest and financing expenses for the affiliate taxation year (determined without regard to any amount or portion of an amount that is not deductible because of clause 95(2)(f.11)(ii)(D)) exceeds the total of all amounts, each of which is (I) the affiliate’s relevant affiliate interest and financing revenues for the affiliate taxation year, or (II) an amount included under subclause 95(2)(f.11)(ii)(D)(II) in respect of the affiliate for the affiliate taxation year, Z.1 is the amount that is included in the taxpayer’s interest and financing expenses for the taxpayer loss year in respect of the affiliate’s relevant affiliate interest and financing expenses for the affiliate taxation year, and Z.2 is the affiliate’s relevant affiliate interest and financing expenses for the affiliate taxation year, and K is the non-capital loss for the taxpayer loss year, (i) 25% of the amount deducted, in respect of a specified pre-regime loss of the taxpayer in respect of the year, by the taxpayer under paragraph 111(1)(a) in computing its taxable income for the year, (j) in respect of a corporation (referred to in this paragraph as the “affiliate”) that is a controlled foreign affiliate of the taxpayer at the end of an affiliate taxation year ending in the year — or that is a controlled foreign affiliate of a partnership, of which the taxpayer or a controlled foreign affiliate of the taxpayer is a member at any time, at the end of an affiliate taxation year ending in a fiscal period of the partnership — the additional amount that would be included in the taxpayer’s income, either under subsection 91(1) or because an amount would be included in the income of a partnership under that subsection, in respect of the affiliate’s foreign accrual property income for the affiliate taxation year, if the affiliate’s foreign accrual property income for the affiliate taxation year were increased by the amount determined by the formula L × M ÷ N where L is the amount that, in computing the foreign accrual property income of the affiliate for the affiliate taxation year, is the prescribed amount for the description of F in the definition foreign accrual property income in subsection 95(1), in respect of a foreign accrual property loss of the affiliate for another affiliate taxation year (referred to in this paragraph as the “affiliate loss year”), M is the lesser of (i) the affiliate’s foreign accrual property loss for the affiliate loss year, and (ii) the amount by which the affiliate’s relevant affiliate interest and financing expenses for the affiliate loss year (determined without regard to any amount or portion of an amount that is not deductible because of clause 95(2)(f.11)(ii)(D)) exceeds the total of all amounts, each of which is (A) the affiliate’s relevant affiliate interest and financing revenues for the affiliate loss year, or (B) an amount included under subclause 95(2)(f.11)(ii)(D)(II) in respect of the affiliate for the affiliate loss year, and N is the affiliate’s foreign accrual property loss for the affiliate loss year, (k) the amount that would be the taxpayer’s loss for the year, or that would be the taxpayer’s share of the loss of a partnership of which the taxpayer is a member, if the taxpayer or partnership had no income or loss other than a loss that can reasonably be considered to be incurred by the taxpayer or the partnership in respect of activities funded by a borrowing (within the meaning of the definition exempt interest and financing expenses ) that results in exempt interest and financing expenses of the taxpayer or the partnership, (l) an amount deducted under subsection 127(5) or (6), 127.44(3) or 127.45(6) in respect of a property acquired in a preceding taxation year in computing the taxpayer’s tax payable for a preceding taxation year to the extent that it (i) is included in an amount determined under paragraph 13(7.1)(e) or subparagraph 53(2)(c)(vi) to (vi.2) or (h)(ii) or for I in the definition undepreciated capital cost in subsection 13(21), and (ii) was not included (A) in computing the taxpayer’s income for the year or a preceding taxation year, and (B) under this paragraph in calculating the taxpayer’s adjusted taxable income for a preceding taxation year, or (m) an amount described in clause 12(1)(x)(i)(C) or subparagraph 12(1)(x)(ii) that is received by the taxpayer in the year to the extent that it (i) reduces the cost or capital cost of a property, (ii) is not included in computing the income of the taxpayer for the year under paragraph 12(1)(x), and (iii) would be included in computing the income of the taxpayer for the year under paragraph 12(1)(x) if that paragraph were read without reference to its subparagraphs (vi) and (vii); and C is the total of all amounts each of which is (a) the taxpayer’s interest and financing revenues for the year, (b) an amount included under subsection 13(1) in computing the taxpayer’s income for the year, (c) in respect of the income or loss of a partnership, for a fiscal period that ends in the year, from any source or from sources in a particular place, an amount determined by the formula O × P where O is an amount that is included by the partnership under subsection 13(1) in computing its income or loss from the source, or the source in a particular place, for the fiscal period, and P is the taxpayer’s specified proportion, if the references in the definition specified proportion in subsection 248(1) to “total income or loss” were read as “income or loss from the source, or the source in a particular place”, (d) an amount included under subsection 59(1) or (3.2) or paragraph 59.1(b) in computing the taxpayer’s income for the year, (e) in the case of a corporation (i) 100/28 of the total of the amounts that would be deductible by it under subsection 126(1) from its tax for the year otherwise payable under this Part if those amounts were determined without reference to sections 123.3 and 123.4, or (ii) the amount determined by multiplying the total of the amounts that would be deductible by it under subsection 126(2) from its tax for the year otherwise payable under this Part, if those amounts were determined without reference to section 123.4, by the relevant factor for the year, (f) in the case of a trust, the amount determined by the formula Q × (1 ÷ (R × S)) where Q is the total of the amounts deductible by it under subsection 126(1) or (2) from its tax for the year otherwise payable under this Part for the year, R is the percentage (expressed as a decimal fraction) referred to in paragraph 122(1)(a) in respect of the year, and S is 1 plus the percentage (expressed as a decimal fraction) referred to in subsection 120(1) in respect of the year, (g) an amount included under section 110.5 in computing the taxpayer’s taxable income for the year, (h) an amount included under subsection 104(13) in computing the taxpayer’s income for the year, except to the extent of any portion of the amount that (i) has been designated under subsection 104(19) for the year, or (ii) gives rise to a deduction under paragraph 94.2(3)(a) in computing the foreign accrual property income for an affiliate taxation year of an entity that is a controlled foreign affiliate of the taxpayer at the end of the affiliate taxation year, (i) an amount of the taxpayer’s taxable income for the year that is not, because of an Act of Parliament, subject to tax under this Part, or (j) the amount that would be the taxpayer’s income for the year, or that would be the taxpayer’s share of the income of a partnership of which the taxpayer is a member, if the taxpayer or partnership had no income or loss other than income that can reasonably be considered to be earned by the taxpayer or the partnership in respect of activities funded by a borrowing (within the meaning of the definition exempt interest and financing expenses ) that results in exempt interest and financing expenses of the taxpayer or the partnership. ( revenu imposable rajusté ) affiliate taxation year  of a controlled foreign affiliate means the period for which the accounts of the affiliate have been ordinarily made up, but no such period may exceed 53 weeks. ( année d’imposition de la société affiliée ) cumulative unused excess capacity  of a taxpayer for a particular taxation year means the total of all amounts each of which is (a) the excess capacity of the taxpayer for the particular year, or (b) the excess capacity of the taxpayer for any of the three immediately preceding taxation years, if the taxpayer’s excess capacity for each of those years is determined according to the following rules: (i) if the taxpayer has an amount of transferred capacity for any taxation year (referred to in this definition as the “transfer year”) preceding the particular year, (A) there are to be reductions to the taxpayer’s excess capacity for the transfer year and the three taxation years immediately preceding the transfer year (each referred to in this subparagraph as a “relevant year”) in a total amount equal to the total of all amounts each of which is an amount of transferred capacity of the taxpayer for the transfer year (referred to in this definition as the “total transferred capacity amount”), and (B) the amount by which the taxpayer’s excess capacity for a particular relevant year is to be reduced is equal to the lesser of (I) the taxpayer’s excess capacity for the particular relevant year, determined taking into consideration any reductions to that excess capacity under 1 this subparagraph, in respect of amounts of transferred capacity for years preceding the transfer year, and 2 subparagraph (ii), in respect of amounts of absorbed capacity for the transfer year and any years preceding the transfer year, and (II) the amount, if any, by which the total transferred capacity amount for the transfer year exceeds the reductions, under this subparagraph in respect of that total transferred capacity amount, to the taxpayer’s excess capacity for any relevant years preceding the particular relevant year, and (ii) if the taxpayer has an amount of absorbed capacity for a taxation year (referred to in this definition as the “absorbed capacity year”), (A) there are to be reductions to the taxpayer’s excess capacity for the three taxation years immediately preceding the absorbed capacity year (each referred to in this subparagraph as a “relevant year”) in a total amount equal to the amount of absorbed capacity for the absorbed capacity year, and (B) the amount by which the taxpayer’s excess capacity for a particular relevant year is to be reduced is equal to the lesser of (I) the taxpayer’s excess capacity for the particular relevant year, determined taking into account any reductions to that excess capacity under 1 subparagraph (i), in respect of amounts of transferred capacity for years preceding the absorbed capacity year, and 2 this subparagraph, in respect of amounts of absorbed capacity for years preceding the absorbed capacity year, and (II) the amount, if any, by which the amount of absorbed capacity for the absorbed capacity year exceeds the reductions under this subparagraph in respect of that amount of absorbed capacity to the taxpayer’s excess capacity for the relevant years preceding the particular relevant year. ( capacité excédentaire cumulative inutilisée ) eligible group entity , in respect of a taxpayer resident in Canada, at any time, means a corporation, or a trust, resident in Canada (a) that is, at that time, related (other than because of a right referred to in paragraph 251(5)(b)) to the taxpayer; (b) that would, at that time, be affiliated with the taxpayer if section 251.1 were read without reference to the definition controlled in subsection 251.1(3); (c) that is a trust in respect of which the taxpayer’s interest in the trust is not a fixed interest (as defined in subsection 94(1)); or (d) that is a beneficiary of the taxpayer, if the taxpayer is a trust, whose interest in the taxpayer is not a fixed interest (as defined in subsection 94(1)) (other than a beneficiary that is a registered charity, or a non-profit organization, with whom the taxpayer deals at arm’s length). ( entité admissible du groupe ) excess capacity  of a taxpayer for a taxation year means (a) if subsection 18.21(2) applies in respect of the taxpayer for the year, nil; and (b) in any other case, the amount determined by the formula A − B − C where A is the amount determined by the formula D × E + F where D is the ratio of permissible expenses of the taxpayer for the year, E is the adjusted taxable income of the taxpayer for the year, and F is the amount determined by the formula G − H × I where G is the interest and financing revenues of the taxpayer for the year, H is the ratio of permissible expenses of the taxpayer for the year, and I is the lesser of (i) the amount by which the interest and financing revenues of the taxpayer for the year exceed the interest and financing expenses of the taxpayer for the year, and (ii) either (A) if the adjusted taxable income of the taxpayer for the year would, in the absence of section 257, be a negative amount, the absolute value of the negative amount, or (B) in any other case, nil, B is the interest and financing expenses of the taxpayer for the year, and C is the amount deductible by the taxpayer under paragraph 111(1)(a.1) in the year. ( capacité excédentaire ) excluded entity  for a particular taxation year means (a) a corporation that is throughout the particular year a Canadian-controlled private corporation in respect of which the amount determined for C in paragraph 125(5.1)(a) for the year is less than $50,000,000; (b) a particular taxpayer resident in Canada, if $1,000,000 is not less than the amount determined by the formula A − B where A is the total of all amounts, each of which is the interest and financing expenses or the exempt interest and financing expenses of (i) the particular taxpayer for the particular taxation year, or (ii) another taxpayer resident in Canada for a taxation year (referred to in this subparagraph as the “relevant taxation year”) ending in the particular taxation year, if the other taxpayer is an eligible group entity in respect of the particular taxpayer at the end of the relevant taxation year, and B is the amount that would be determined for A if (i) the reference in the description of A to “the interest and financing expenses or the exempt interest and financing expenses” were read as a reference to “the interest and financing revenues”, and (ii) the interest and financing revenues of a financial institution group entity were excluded; or (c) a taxpayer resident in Canada if (i) all or substantially all of the businesses, if any, and all or substantially all of the undertakings and activities of (A) the taxpayer are, throughout the particular year, carried on in Canada, and (B) each eligible group entity in respect of the taxpayer are, throughout the eligible group entity’s taxation year that ends in the particular year, carried on in Canada, (ii) throughout the year, it is the case that A ≥ B where A is $5,000,000, and B is the greater of (A) the total of all amounts, each of which is the amount at which the shares of the capital stock of a foreign affiliate of the taxpayer, a foreign affiliate of an eligible group entity in respect of the taxpayer or a foreign affiliate of a partnership of which the taxpayer or an eligible group entity in respect of the taxpayer is a member, would be valued for the purpose of the balance sheet of the taxpayer or the eligible group entity if that balance sheet were prepared in accordance with generally accepted accounting principles used in Canada, other than any amount or portion of an amount that is already included under this clause because the value of the shares of the capital stock of a particular foreign affiliate reflects the value of shares of the capital stock of another foreign affiliate that is owned, directly or indirectly, by the particular foreign affiliate, or (B) the total of all amounts, each of which is the amount that can reasonably be considered to be the proportionate share, of the taxpayer or an eligible group entity in respect of the taxpayer, of the fair market value of all property of a foreign affiliate of the taxpayer, a foreign affiliate of an eligible group entity in respect of the taxpayer or a foreign affiliate of a partnership of which the taxpayer or an eligible group entity in respect of the taxpayer is a member, other than a property that is shares of the capital stock of another corporation that is a foreign affiliate of the taxpayer, a foreign affiliate of an eligible group entity in respect of the taxpayer or a foreign affiliate of a partnership of which the taxpayer or an eligible group entity in respect of the taxpayer is a member, (iii) no person or partnership is, at any time in the particular year, (A) a specified shareholder or a specified beneficiary (as those terms are defined in subsection 18(5)) of the taxpayer, or of any eligible group entity in respect of the taxpayer, that is not resident in Canada, or (B) a partnership more than 50% of the fair market value of all interests in which can reasonably be considered to be held, directly or indirectly through one or more trusts or partnerships, by non-resident persons, if the property of the partnership includes, (I) if the taxpayer or the eligible group entity in respect of the taxpayer is a corporation, shares, or a right to acquire shares, of the capital stock of the taxpayer or an eligible group entity in respect of the taxpayer that, either alone or together with shares, or rights to acquire shares, held by persons or partnerships with whom the partnership does not deal at arm’s length, 1 provide 25% or more of the votes that could be cast at an annual meeting of the shareholders of the corporation, or 2 have 25% or more of the fair market value of all capital stock in the corporation, or (II) if the taxpayer or the eligible group entity in respect of the taxpayer is a trust, an interest, or a right to acquire an interest, as a beneficiary in the taxpayer or an eligible group entity in respect of the taxpayer that, either alone or together with interests, or rights to acquire interests, held by persons or partnerships with whom the partnership does not deal at arm’s length, has 25% or more of the fair market value of all interests as a beneficiary in the trust, and (iv) all or substantially all of the interest and financing expenses of the taxpayer and of each eligible group entity in respect of the taxpayer for the particular year are paid or payable to persons or partnerships that are not, at any time in the particular year, tax-indifferent persons or partnerships that do not deal at arm’s length with the taxpayer or any eligible group entity in respect of the taxpayer. ( entité exclue ) excluded interest , for a taxation year or fiscal period, means an amount of interest or a lease financing amount, if (a) the amount is paid in, or payable in or in respect of, the year or period by a corporation or partnership (in this definition referred to as the “payer”) to another corporation or partnership (in this definition referred to as the “payee”) in respect of a debt or a lease in respect of a particular property; (b) throughout the period during which the amount accrued (in this definition referred to as the “relevant period”) (i) if the amount is interest, the debt is owed by the payer to the payee, or (ii) if the amount is a lease financing amount, the lease is between the payer and payee; (c) where the payer is not a financial institution group entity, the payee is not a financial institution group entity; (d) throughout the relevant period and at the time of payment (i) each of the payer and payee is (A) a taxable Canadian corporation, or (B) a partnership, no member of which is a natural person, a trust or a corporation that is not a taxable Canadian corporation, and (ii) one of the following conditions is met: (A) if the payee is a partnership, all the members of the payee (other than another partnership) are eligible group entities in respect of (I) if the payer is a partnership, each member of the payer (other than another partnership), and (II) in any other case, the payer, or (B) if the payee is not a partnership, the payee is an eligible group entity in respect of (I) if the payer is a partnership, each member of the payer (other than another partnership), and (II) in any other case, the payer; and (e) the payer — or, if the payer is a partnership, each member of the payer — and the payee — or, if the payee is a partnership, each member of the payee — file with the Minister, in respect of the year or period of both the payer and the payee, a joint election in writing in prescribed manner under this paragraph that (i) specifies (A) the amount of the interest or lease financing amount, (B) if the amount is interest, the amounts outstanding, at the beginning and end of the relevant period, as or on account of the debt in respect of which this paragraph applies, and (C) if the amount is a lease financing amount, the fair market value of the particular property at the time the lease began, and (ii) is filed on or before the earliest of the filing-due date of (A) the payer for its year, (B) the payee for its year, and (C) if the payer or the payee is a partnership, any member of the payer or payee for the member’s taxation year that includes the end of the fiscal period of the payer or the payee, as the case may be. ( intérêts exclus ) excluded lease  for a taxation year of a taxpayer means a lease (a) to which the rules in subsection 16.1(1) apply; (b) that would not be considered to be a lease for a term of more than one year for purposes of paragraph (b) of the definition specified leasing property in subsection 1100(1.11) of the Income Tax Regulations ; or (c) that is in respect of property (i) that would not be considered, at the time the lease was entered into, to have a fair market value in excess of $25,000 for purposes of paragraph (c) of that definition, or (ii) that would be considered, at all times in the taxation year, exempt property for purposes of subsection 1100(1.13) of the Income Tax Regulations . ( bail exclu ) exempt interest and financing expenses  of a taxpayer for a taxation year means the total of all amounts, each of which would, if the description of A in the definition interest and financing expenses were read without reference to “exempt interest and financing expenses”, be included in interest and financing expenses of the taxpayer for that year, and that is incurred in respect of a borrowing or other financing (referred to in this definition as the “borrowing”), if  (a) the taxpayer or a partnership of which the taxpayer is a member entered into an agreement with a public sector authority to design, build and finance — or to design, build, finance, maintain and operate — property that the public sector authority, or another public sector authority, owns or has a leasehold interest in or right to acquire; (b) the borrowing was entered into in respect of the agreement; (c) it can reasonably be considered that all or substantially all of the amount is directly or indirectly borne by a public sector authority referred to in paragraph (a); and (d) the amount was paid or payable to (i) a person that deals at arm’s length with the taxpayer or the partnership of which the taxpayer is a member, or (ii) a particular person that does not deal at arm’s length with the taxpayer or the partnership of which the taxpayer is a member if it may reasonably be considered that all or substantially all of the amount paid or payable to the particular person was paid or payable by the particular person to one or more persons that deal at arm’s length with the taxpayer or the partnership of which the taxpayer is a member. ( dépenses d’intérêts et de financement exonérées ) financial holding corporation , for a taxation year, means a corporation (other than a corporation described in any of paragraphs (a) to (f) of the definition financial institution group entity ) if, throughout the year, (a) the fair market value of the capital stock of the corporation is primarily attributable to any combination of shares or indebtedness of one or more entities described in any of paragraphs (a) to (f) of the definition financial institution group entity that are controlled by the corporation; or (b) the corporation is incorporated under the Insurance Companies Act and shares of the capital stock of the corporation are listed on a designated stock exchange. ( société de portefeuille financière ) financial institution group entity  means a taxpayer that at any time in a taxation year is (a) a bank; (b) a credit union; (c) an insurance corporation; (d) an entity authorized under the laws of Canada or a province to carry on the business of offering its services as a trustee to the public; (e) an entity whose principal business consists of one or more of (i) the lending of money to persons with whom the entity deals at arm’s length, (ii) the purchasing of debt obligations issued by persons with whom the entity deals at arm’s length, or (iii) activities which principally give rise to amounts described in paragraphs (a) to (d) of the description of A in the definition interest and financing revenues and are principally conducted with persons with whom the entity deals at arm’s length; (f) a particular entity that is an eligible group entity in respect of an entity described in any of paragraphs (a) to (e), if the particular entity, or a partnership of which the particular entity is a member and from which the particular entity primarily derives its income, (i) is authorized under provincial securities laws to engage in, and primarily engages in, the business of (A) dealing in securities, or (B) providing portfolio management, investment advice, fund administration or fund management; or (ii) primarily engages in the business of providing portfolio management, investment advice, fund administration or fund management, including any services connected to those activities, in respect of real estate; or (g) a particular entity (other than a financial holding corporation) that is an eligible group entity in respect of any entity described in any of paragraphs (a) to (f) if all or substantially all of the activities of the particular entity are ancillary to the activities or business carried on by one or more entities described in paragraphs (a) to (f) that are eligible group entities in respect of the particular entity. ( entité du groupe d’institutions financières ) fixed interest commercial trust  at any time means a trust resident in Canada, if at that time (a) the only beneficiaries that may for any reason receive, at or after that time and directly from the trust, any of the income or capital of the trust are beneficiaries that hold fixed interests (as defined in subsection 94(1)) in the trust; and (b) any of the conditions set out in clauses (h)(ii)(A) to (C) in the definition exempt foreign trust in subsection 94(1) is met. ( fiducie commerciale à participation fixe ) foreign accrual property loss  of a foreign affiliate for an affiliate taxation year has the meaning assigned by subsection 5903(3) of the Income Tax Regulations . ( perte étrangère accumulée, relative à des biens ) interest and financing expenses  of a taxpayer for a particular taxation year means the amount determined by the formula A − B where A is the total of all amounts (other than an amount that is included in exempt interest and financing expenses), each of which is (a) an amount that (i) is paid in, or payable in or in respect of, a year as, on account of, in lieu of payment of or in satisfaction of, interest (other than excluded interest for the particular year or an amount that is deemed to be interest under subsection 137(4.1)), (ii) would, in the absence of this section, be deductible (other than under a provision referred to in subparagraph (c)(i)) by the taxpayer in computing its income for the particular year, and (iii) is not described in any other paragraph in this definition, (b) an amount that, in the absence of this section and on the assumption that it is not deductible under another provision of this Act (other than any of the provisions referred to in subparagraph (c)(i)), would be deductible in computing the taxpayer’s income for the particular year under any of subparagraphs 20(1)(e)(ii) to (ii.2) and paragraphs 20(1)(e.1) to (f), (c) the portion of an amount, if (i) the amount, in the absence of this section, would be deductible in computing the taxpayer’s income for the particular year and is claimed by the taxpayer under paragraph 20(1)(a) or subsection 66(4), 66.1(2) or (3), 66.2(2), 66.21(4), 66.4(2) or 66.7(1), (2), (2.3), (3), (4) or (5), and (ii) the portion can reasonably be considered to be attributable to an amount paid or payable on or after February 4, 2022 that either (A) is described in subparagraph (a)(i), or (B) would otherwise have been deductible in a taxation year under a provision referred to in paragraph (b), but for the application of another provision of this Act, (d) the portion of an amount that would, in the absence of this section, be deductible in computing the taxpayer’s income for the particular year under subsection 20(16), to the extent that the portion can reasonably be considered to be described in subparagraph (c)(ii), (e) an amount that is paid or payable by the taxpayer in a year or that is a loss or a capital loss of the taxpayer for a year, as the case may be, under or as a result of an agreement or arrangement, if (i) the amount would, in the absence of this section (A) be deductible (other than under subparagraph 20(1)(e)(i)) in computing the taxpayer’s income for the particular year, or (B) in the case of a capital loss, reduce the amount determined under paragraph 3(b) in respect of the taxpayer or be deductible in computing the taxpayer’s taxable income for the particular year (except to the extent it has already been included under this paragraph for a previous year), (ii) the agreement or arrangement is entered into as or in relation to a borrowing or other financing that the taxpayer or a person or partnership that does not deal at arm’s length with the taxpayer enters into, whether currently or in the future, and absolutely or contingently, and (iii) the amount can reasonably be considered to increase (or be part of) the cost of funding with respect to the borrowing or other financing (including as a result of any hedge of the cost of funding or of the borrowing or other financing) of the taxpayer or a person or partnership that does not deal at arm’s length with the taxpayer; (f) a particular amount that (i) is in respect of an agreement or arrangement that gives rise to, or can reasonably be expected to give rise to, an amount that (A) is included in computing a taxpayer’s interest and financing expenses for a taxation year under paragraph (e), or (B) reduces the taxpayer’s interest and financing expenses for a taxation year under the description of B, (ii) would, in the absence of this section, be deductible by the taxpayer in computing its income for the particular year, (iii) is not deductible under any of the provisions listed in paragraph (b), and (iv) is an expense or fee payable under the agreement or arrangement or an expense that is incurred in contemplation of, in the course of entering into or in relation to, the agreement or arrangement, (g) a lease financing amount (other than in respect of an excluded lease for the particular year) that (i) would, in the absence of this section, be deductible by the taxpayer in computing its income for the particular year, and (ii) is not excluded interest for the particular year, (h) in respect of the income or loss of a partnership, for a fiscal period that ends in the particular year, from any source or from sources in a particular place, an amount determined by the formula C × D − E − F where C is the total of all amounts, each of which is an amount that (i) is deductible by the partnership in computing its income or loss from the source, or the source in a particular place, for a fiscal period, and that would be described in any of paragraphs (a) to (g) if the references to the taxpayer were read as references to the partnership, or (ii) would be included under paragraph (j) in determining the interest and financing expenses of the partnership for the purposes of determining its income or loss from the source, or the source in a particular place, for the fiscal period, if the partnership were a taxpayer for the purposes of this section, D is the taxpayer’s specified proportion, if the references in the definition specified proportion in subsection 248(1) to “total income or loss” were read as “income or loss from the source, or the source in a particular place”, E is the amount, if any, included in computing the taxpayer’s income under paragraph 12(1)(l.1) in respect of the amount referred to in the description of C, and F is the portion of an amount determined for C that can reasonably be considered to not be deductible in computing the taxpayer’s income for the particular year, and to not be included in computing the taxpayer’s non-capital loss for the particular year, because of subsection 96(2.1), (i) the portion of an amount that, in the absence of this section, would be deductible in computing the taxpayer’s taxable income for the particular year and is claimed by the taxpayer under paragraph 111(1)(e) in respect of a partnership of which the taxpayer is a member that can reasonably be considered to be attributable to an amount referred to in the description of F in paragraph (h) in respect of a fiscal period of the partnership ending in another taxation year of the taxpayer, or (j) in respect of a corporation that is a controlled foreign affiliate of the taxpayer at the end of an affiliate taxation year ending in the particular year, an amount determined by the formula G × H where G is the affiliate’s relevant affiliate interest and financing expenses for the affiliate taxation year, and H is the taxpayer’s specified participating percentage in respect of the affiliate for the affiliate taxation year; and B is the total of all amounts, each of which is (a) an amount received or receivable (other than as a dividend or in respect of exempt interest and financing expenses) by the taxpayer in a year, or a gain of the taxpayer for a year, as the case may be, under or as a result of an agreement or arrangement to the extent that (i) the amount is included in computing the taxpayer’s income for the particular year, (ii) the agreement or arrangement is entered into (A) as a borrowing or other financing of the taxpayer or of a person or partnership that does not deal at arm’s length with the taxpayer, or (B) in relation to a borrowing or other financing of the taxpayer or of a person or partnership that does not deal at arm’s length with the taxpayer to hedge the cost of funding or the borrowing or other financing, (iii) the amount can reasonably be considered to reduce the cost of funding with respect to the borrowing or other financing of the taxpayer or a person or partnership that does not deal at arm’s length with the taxpayer, and (iv) the amount cannot reasonably be considered to be excluded, reduced, offset or otherwise effectively sheltered from tax under this Part because (A) an amount is deductible under any of subsections 20(11) to (12.1) and 126(1) and (2), and (B) an amount is deductible in respect of income or profits tax paid to a country other than Canada that (I) can reasonably be considered to have been paid in respect of the amount, and (II) is not a tax substantially similar to tax under subsection 212(1), or (b) in respect of the income or loss of a partnership, for a fiscal period that ends in the particular year, from any source or from sources in a particular place, an amount determined by the formula I × J where I is an amount that would be described in paragraph (a) if (i) the references to the taxpayer in that paragraph were read as references to the partnership, and (ii) the reference in subparagraph (a)(i) to “the taxpayer’s income for the particular year” were read as “the partnership’s income or loss from the source, or the source in a particular place, for a fiscal period”, and J is the taxpayer’s specified proportion, if the references in the definition specified proportion in subsection 248(1) to “total income or loss” were read as “income or loss from the source, or the source in a particular place”. ( dépenses d’intérêts et de financement ) interest and financing revenues  of a taxpayer for a taxation year means the amount determined by the formula A − B where A is the total of all amounts (other than any amount included under the description of B in the definition interest and financing expenses ), each of which is (a) an amount received or receivable as, on account of, in lieu of payment or in satisfaction of, interest (other than excluded interest for the year, an amount that is deemed to be interest under subsection 137(4.1) or any amount described in any other paragraph in this definition) that is included in computing the taxpayer’s income for the year, (b) an amount that is included in computing the taxpayer’s income for the year because of subsection 12(9) or section 17.1 (other than any amount described in any other paragraph in this definition), (c) a fee or similar amount in respect of a guarantee, or similar credit support, provided by the taxpayer for the payment of any amount on a debt obligation owing by another person or partnership that is included in computing the taxpayer’s income for the year (other than any amount described in any other paragraph in this definition), (d) an amount received or receivable (other than as a dividend) by the taxpayer, or a gain of the taxpayer, as the case may be, under or as a result of an agreement or arrangement, if (i) the amount is included in computing the taxpayer’s income for the year, (ii) the agreement or arrangement is entered into as or in relation to a loan or other financing owing to or provided by the taxpayer or a person or partnership that does not deal at arm’s length with the taxpayer, and (iii) the amount can reasonably be considered to increase (or be part of) the return of the taxpayer or a person or partnership that does not deal at arm’s length with the taxpayer with respect to the loan or other financing (including as a result of any hedge of the return or of the loan or other financing), (e) a lease financing amount (other than in respect of a lease that would be an excluded lease for the year, if the definition excluded lease were read without regard to its paragraph (a)) that (i) is included in computing the taxpayer’s income for the year, and (ii) is not excluded interest for the year, (f) in respect of the income or loss of a partnership, for a fiscal period that ends in the year, from any source or from sources in a particular place, an amount determined by the formula C × D where C is the total of all amounts, each of which is an amount that (i) is included by the partnership in computing its income or loss from the source, or the source in a particular place, for a fiscal period and that would be described in paragraphs (a) to (e) if the references to the taxpayer were read as references to the partnership, or (ii) would be included under paragraph (g) in determining the interest and financing revenues of the partnership for the purposes of determining its income or loss from the source, or the source in a particular place, for the fiscal period, if the partnership were a taxpayer for the purposes of this section, and D is the taxpayer’s specified proportion, if the references in the definition specified proportion in subsection 248(1) to “total income or loss” were read as “income or loss from the source, or the source in a particular place”, or (g) in respect of a corporation that is a controlled foreign affiliate of the taxpayer at the end of an affiliate taxation year ending in the year, an amount determined by the formula E × F − G where E is the affiliate’s relevant affiliate interest and financing revenues for the affiliate taxation year, F is the taxpayer’s specified participating percentage in respect of the affiliate for the affiliate taxation year, and G is an amount (other than any portion of the amount that is in respect of income tax paid under subsection 212(1)) that is deducted under subsection 91(4) in computing the taxpayer’s income for any taxation year in respect of foreign accrual tax (as defined in subsection 95(1)) applicable to an amount that is included in the taxpayer’s income under subsection 91(1) in respect of the affiliate’s relevant affiliate interest and financing revenues for the affiliate taxation year, and B is the total of all amounts, each of which is (a) an amount paid or payable by the taxpayer, or a loss or a capital loss of the taxpayer, as the case may be, under or as a result of an agreement or arrangement, to the extent that (i) the amount (A) is deductible in computing the taxpayer’s income for the year, or (B) in the case of a capital loss, reduces the amount determined under paragraph 3(b) in respect of the taxpayer or is deductible in computing the taxpayer’s taxable income for the year (except to the extent it has already been taken into account in determining an amount under this paragraph for a previous year), (ii) the agreement or arrangement is entered into (A) as a loan or other financing owing to or provided by the taxpayer, or a person or partnership that does not deal at arm’s length with the taxpayer, or (B) in relation to a loan or other financing owing to or provided by the taxpayer, or a person or partnership that does not deal at arm’s length with the taxpayer, to hedge the cost of funding or the borrowing or other financing, and (iii) the amount can reasonably be considered to reduce the return of the taxpayer, or a person or partnership that does not deal at arm’s length with the taxpayer, in respect of the loan or other financing; (b) in respect of the income or loss of a partnership, for a fiscal period that ends in the year, from any source or from sources in a particular place, an amount determined by the formula H × I where H is an amount that would be described in paragraph (a) if (i) the references to the taxpayer in that paragraph were read as references to the partnership, and (ii) the reference in subparagraph (a)(i) to “the taxpayer’s income for the year” were read as “the partnership’s income or loss from the source, or the source in a particular place, for a fiscal period”, and I is the taxpayer’s specified proportion, if the references in the definition specified proportion in subsection 248(1) to “total income or loss” were read as “income or loss from the source, or the source in a particular place”, (c) the portion of any amount included under the description of A (referred to in this paragraph as the “subject amount”) that can reasonably be considered to be excluded, reduced, offset or otherwise effectively sheltered from tax under this Part because an amount is deductible (i) under any of subsections 20(11) to (12.1) and 126(1) and (2), and (ii) in respect of income or profits tax paid to a country other than Canada that (A) can reasonably be considered to have been paid in respect of the subject amount, and (B) is not a tax substantially similar to tax under subsection 212(1), (d) the portion of any amount included under A that is not, because of an Act of Parliament, subject to tax under this Part. ( revenus d’intérêts et de financement ) lease financing amount  means an amount that is the portion of a particular payment in respect of a particular lease entered into by a taxpayer that would be considered to be on account of interest if (a) the lessee had received a loan at the time the particular lease began and in a principal amount equal to the fair market value at that time of the property that is the subject of the particular lease; (b) interest had been charged on the principal amount of the loan outstanding from time to time at the rate — determined in accordance with section 4302 of the Income Tax Regulations — in effect at the time described in paragraph (a), compounded semi-annually not in advance; and (c) the particular payment was a blended payment of principal and interest, calculated in accordance with paragraph (b), on the loan applied firstly on account of interest on principal, secondly on account of interest on unpaid interest and thirdly on account of principal. ( montant du crédit-bail ) public sector authority  means His Majesty in right of Canada, His Majesty in right of a province, an entity referred to in any of paragraphs 149(1)(c) to (d.6), a hospital authority (as defined in subsection 123(1) of the Excise Tax Act ) or a registered charity that is a public college , school authority or university (each as defined in subsection 123(1) of the Excise Tax Act ). ( administration du secteur public ) ratio of permissible expenses  of a taxpayer for a taxation year means the percentage that is (a) if the taxpayer’s taxation year begins on or after October 1, 2023, and before January 1, 2024, 40%, other than for the purpose of determining the taxpayer’s cumulative unused excess capacity for any taxation year that begins on or after January 1, 2024; and (b) if the taxpayer’s taxation year begins on or after January 1, 2024, and for the purposes referred to in paragraph (a) for which 40% is not the applicable percentage, 30%. ( ratio des dépenses admissibles ) received capacity  means an amount of received capacity of a transferee for a taxation year as determined under subsection (4). ( capacité reçue ) relevant affiliate interest and financing expenses  of a controlled foreign affiliate of a taxpayer (determined as though the definition taxpayer in this subsection did not include the words “or a partnership”) for an affiliate taxation year means, subject to subsection (19), the total of all amounts (other than an amount that is deductible in computing any income or loss of the affiliate that is included in computing the affiliate’s income or loss from an active business because of paragraph 95(2)(a) or an amount that is described in clause 95(2)(a)(ii)(D) and treated as nil for the purposes of determining an amount for A or D in the definition foreign accrual property income in subsection 95(1)), each of which would be the affiliate’s interest and financing expenses (determined without regard to paragraph (j) of the description of A in the definition interest and financing expenses ) for the affiliate taxation year for the purposes of determining, in respect of the taxpayer for the affiliate taxation year, each amount referred to in subparagraph 95(2)(f)(i) or (ii), if (a) the references in the definition interest and financing expenses to “in the absence of this section” were read as references to “in the absence of clause 95(2)(f.11)(ii)(D)”; and (b) clause 95(2)(f.11)(ii)(A) were read without regard to the reference to subsection 18.2(2). ( dépenses d’intérêts et de financement de la société affiliée pertinentes ) relevant affiliate interest and financing revenues  of a controlled foreign affiliate of a taxpayer (determined as though the definition taxpayer in this subsection did not include the words “or a partnership”) for an affiliate taxation year means, subject to subsection (19), the total of all amounts (other than an amount included in computing the affiliate’s income or loss from an active business under paragraph 95(2)(a) or (2.44)(b)), each of which would be the affiliate’s interest and financing revenues (determined without regard to paragraph (g) of the description of A in the definition interest and financing revenues ) for the affiliate taxation year for the purposes of determining, in respect of the taxpayer for the affiliate taxation year, each amount referred to in subparagraph 95(2)(f)(i) or (ii), if clause 95(2)(f.11)(ii)(A) were read without regard to the reference to subsection 18.2(2). ( revenus d’intérêts et de financement de la société affiliée pertinents ) relevant inter-affiliate interest , of a controlled foreign affiliate of a taxpayer for an affiliate taxation year, means an amount of interest to the extent that the amount (a) is paid or payable by the affiliate to, or received or receivable by the affiliate from, a controlled foreign affiliate (in this definition referred to as the “other affiliate”) of (i) the taxpayer, or (ii) a taxpayer that is an eligible group entity in respect of the taxpayer; and (b) would, in the absence of subsection (19), be included in (i) if the amount is paid or payable by the affiliate, the affiliate’s relevant affiliate interest and financing expenses for the affiliate taxation year and the other affiliate’s relevant affiliate interest and financing revenues for an affiliate taxation year, or (ii) if the amount is received or receivable by the affiliate, the affiliate’s relevant affiliate interest and financing revenues for the affiliate taxation year and the other affiliate’s relevant affiliate interest and financing expenses for an affiliate taxation year. ( intérêts pertinents entre sociétés affiliées ) special purpose loss corporation , for a taxation year, means a particular corporation that  (a) is an eligible group entity in respect of a financial holding corporation to which the particular corporation has interest paid or payable in the year; (b) is formed or exists solely for the purpose of generating a loss of the particular corporation; and (c) would, in the absence of this section, have a loss for the year that is, or will be, utilized by a financial institution group entity that is an eligible group entity in respect of the particular corporation. ( société à usage déterminé ayant subi des pertes ) specified participating percentage  of a taxpayer, in respect of a controlled foreign affiliate of the taxpayer for an affiliate taxation year, means the percentage that would be the taxpayer’s aggregate participating percentage (as defined in subsection 91(1.3)), determined without regard to clause 95(2)(f.11)(ii)(D), in respect of the affiliate for the affiliate taxation year, if the definition participating percentage in subsection 95(1) were read without reference to (a) its paragraph (a); and (b) the portion of its paragraph (b) before its subparagraph (b)(i). ( pourcentage de participation déterminé ) specified pre-regime loss  of a taxpayer, in respect of a taxation year, means the taxpayer’s non-capital loss for a preceding taxation year, if (a) the preceding year ends before February 4, 2022; (b) the taxpayer files with the Minister, in respect of the loss, an election in writing in prescribed manner under this definition; (c) the election specifies (i) the loss, (ii) each amount deducted, in respect of the loss, by the taxpayer under paragraph 111(1)(a) in computing its taxable income (A) for the year, and (B) each taxation year that precedes the year, and (iii) the taxpayer’s adjusted taxable income for the year; and (d) the election is filed on or before the filing-due date of the taxpayer for the year. ( perte antérieure au régime déterminée ) tax-indifferent  means a person or partnership that is (a) a person exempt from tax under section 149; (b) a non-resident person; (c) a partnership more than 50% of the fair market value of all interests in which can reasonably be considered to be held, directly or indirectly through one or more trusts or partnerships, by any combination of persons described in paragraph (a) or (b); or (d) a trust resident in Canada if more than 50% of the fair market value of all interests as beneficiaries under the trust can reasonably be considered to be held, directly or indirectly through one or more trusts or partnerships, by any combination of persons described in paragraph (a) or (b). ( indifférent relativement à l’impôt ) taxpayer  has the meaning assigned by subsection 248(1), but does not include a natural person or a partnership. ( contribuable ) transaction  includes an arrangement or event. ( opération ) transferred capacity  means an amount of transferred capacity of a transferor for a taxation year as determined under subsection (4). ( capacité transférée ) Excessive interest and financing expenses limitation (2) Notwithstanding any other provision of this Act, in computing the income for a taxation year of a taxpayer (other than an excluded entity for the year) from a business or property or the taxable income of the taxpayer for the year, no deduction shall be made — and in determining the amount under paragraph 3(b) in respect of the taxpayer for the year, no reduction shall be made — in respect of any amount that is described in any of paragraphs (a) to (g) and (i) of the description of A in the definition interest and financing expenses in subsection (1) that would, in the absence of this section, be deductible in computing that income or taxable income — or would reduce that amount determined under paragraph 3(b) — to the extent of the proportion of that amount that is determined by the formula (A − (B + C + D + E)) ÷ F where A is the taxpayer’s interest and financing expenses for the year; B is (a) if subsection 18.21(2) applies in respect of the taxpayer for the year, the amount determined in respect of the taxpayer for the year under that subsection, and (b) in any other case, the amount determined by the formula G × H where G is the taxpayer’s ratio of permissible expenses for the year, and H is the taxpayer’s adjusted taxable income for the year; C is the taxpayer’s interest and financing revenues for the year; D is the amount by which the total of all amounts each of which is an amount of received capacity of the taxpayer for the year, as determined under subsection (4), exceeds the total amount deductible under paragraph 111(1)(a.1) for the year; E is the amount of the taxpayer’s absorbed capacity for the year; and F is (a) if no amount is included in the taxpayer’s interest and financing expenses for the year under paragraph (j) of the description of A of that definition, or under paragraph (h) of the description of A of that definition in respect of a controlled foreign affiliate of a partnership of which the taxpayer is a member, the amount determined for A in that definition for the taxpayer for the year, or (b) in any other case, the amount that would be determined for A in the definition interest and financing expenses in subsection (1) for the taxpayer for the year if the reference to “the affiliate’s interest and financing expenses” in the definition relevant affiliate interest and financing expenses were read as a reference to “an amount determined for A in the definition interest and financing expenses for the affiliate”. Amount deemed deducted (3) All or any portion, of a particular amount described in paragraph (c) or (d) of the description of A in the definition interest and financing expenses in subsection (1), that would, in the absence of subsection (2), have been deducted in computing the income of a taxpayer for a taxation year but that is not deductible because of subsection (2), is deemed to have been deductible and to have been deducted in the year for purposes of determining, in respect of any taxpayer at any time, such of the following amounts to which the particular amount relates: (a) the total depreciation (as defined in subsection 13(21)) allowed for property of a prescribed class; (b) the amount the taxpayer may deduct under subsection 66(4); (c) the cumulative Canadian exploration expense (as defined in subsection 66.1(6)); (d) the cumulative Canadian development expense (as defined in subsection 66.2(5)); (e) the cumulative foreign resource expense (as defined in subsection 66.21(1)) in respect of a country; (f) the cumulative Canadian oil and gas property expense (as defined in subsection 66.4(5)); and (g) the amount the taxpayer may deduct under subsections 66.7(1), (2) or (2.3) to (5). Transfer of cumulative unused excess capacity (4) For the purposes of this section, a taxpayer and another taxpayer (referred to in this section as the “transferor” and the “transferee”, respectively) may jointly elect in prescribed form to designate an amount equal to all or a portion of the transferor’s cumulative unused excess capacity, and that amount is an amount of transferred capacity of the transferor for a taxation year and an amount of received capacity of the transferee for a taxation year, if (a) the taxation year of the transferor ends in the taxation year of the transferee; (b) each of the transferor and the transferee is (i) a taxable Canadian corporation or a fixed interest commercial trust throughout its taxation year, and (ii) an eligible group entity in respect of the other at the end of its taxation year; (c) where the transferor is a financial institution group entity or a financial holding corporation for its taxation year, the transferee is, for its taxation year, (i) a financial institution group entity, (ii) a financial holding corporation, or (iii) a special purpose loss corporation; (d) the election or amended election (i) specifies the amount of the transferred capacity, and (ii) is filed with the Minister by the transferor (A) on or before the later of the filing-due date of (I) the transferor for its taxation year, and (II) the transferee for its taxation year, or (B) on or before the day that is 90 days after the day of sending of (I) a notice of assessment of tax payable under this Part by the transferor or the transferee for their respective taxation years, or (II) a notification that no tax is payable under this Part by the transferor or the transferee for their respective taxation years; (e) the total of all amounts each of which would, if this subsection were read without reference to this paragraph, be an amount of transferred capacity of the transferor for its taxation year in respect of any transferee, does not exceed the transferor’s cumulative unused excess capacity for the year; (f) if the transferee is a financial holding corporation and the transferor is a financial institution group entity, it is the case that A ≥ B where A is the total of all amounts, each of which is an amount that is included in computing the income of the financial holding corporation for its taxation year in respect of excluded interest, the payer of which is, for the taxation year of the payer in which the interest is payable, (i) a financial institution group entity, or (ii) a special purpose loss corporation, if the amount gives rise to a loss of the special purpose loss corporation that is, or will be, utilized solely by a financial institution group entity, and B is the total of all amounts, each of which would, in the absence of this paragraph, be an amount that is both (i) received capacity of the financial holding corporation for its taxation year, and (ii) transferred capacity of a financial institution group entity for one of its taxation years; (g) if the transferee is a special purpose loss corporation and the transferor is a financial institution group entity, it is the case that C ≥ D where C is the total of all amounts, each of which is an amount that (i) would, in the absence of this section, be deductible in computing the income of the special purpose loss corporation for its taxation year, (ii) is paid or payable to a financial holding corporation, (iii) meets the conditions set out in paragraphs (a) to (d) of the definition excluded interest , and (iv) would, in the absence of this section, give rise to a loss that is, or will be, utilized solely by a financial institution group entity, and D is the total of all amounts, each of which would, in the absence of this paragraph, be an amount that is both (i) received capacity of the special purpose loss corporation for its taxation year, and (ii) transferred capacity of a financial institution group entity for one of its taxation years; (h) an amended election has not been filed in accordance with this section; (i) where the election is an amended election, (i) the following conditions are met: (A) in the absence of any assessment, the condition set out in paragraph (e) would be met in respect of a prior election under this subsection made by the transferor and transferee for their respective taxation years, and (B) subsection (9) does not apply to a tax benefit in respect of a prior election for the taxation year of the transferor or transferee, or (ii) the Minister grants permission to amend the prior election under subsection (5); and (j) the transferee files an information return in accordance with subsection (6) for the calendar year in which the transferee’s taxation year ends. Late or amended election (5) The Minister may extend the time for making an election, or grant permission to amend an election, under subsection (4) if (a) the transferor and the transferee demonstrate to the satisfaction of the Minister that (i) the transferor, the transferee and each other eligible group entity in respect of the transferor and transferee made reasonable efforts to determine all amounts that may reasonably be considered relevant in making the election, and (ii) the election or amended election, as the case may be, is filed as soon as circumstances permit; and (b) in the opinion of the Minister, the circumstances are such that it would be just and equitable to permit the election to be made or amended. Summary — cumulative unused excess capacity transfers (6) If one or more elections are filed under subsection (4), in which amounts are designated as received capacity of a particular transferee for a taxation year ending in a calendar year, the particular transferee shall file with the Minister for the calendar year an information return in prescribed form within six months after the end of the calendar year in respect of (a) each such election; and (b) each election filed under subsection (4) for a taxation year ending in the calendar year, by any other transferee that is an eligible group entity in respect of the particular transferee at the end of the other transferee’s taxation year. Summary — filing by designated filer (7) For the purposes of this section, if any taxpayer is required to file an information return for a calendar year under subsection (6), the taxpayer is deemed to have filed the information return if (a) an information return under subsection (6) is filed for the calendar year by any other taxpayer (in this subsection referred to as the “designated filer” in respect of the taxpayer for the year) that is an eligible group entity in respect of the taxpayer at the end of the taxpayer’s taxation year ending in the calendar year; and (b) the taxpayer jointly elects, with each other transferee described in paragraph (6)(b), to designate under this paragraph the designated filer to be a designated filer in respect of the taxpayer and each other transferee for the calendar year. Assessment (8) If an election or an amended election has been made under subsection (4), the Minister shall, notwithstanding subsections 152(4) and (5), assess or reassess the tax, interest or penalties payable under this Act by any taxpayer for any relevant taxation year as is necessary to give effect to the election or amended election. Anti-avoidance — group status (9) If, at any time, a particular taxpayer is, becomes or ceases to be an eligible group entity, in respect of another taxpayer, a financial institution group entity or a financial holding corporation and it may reasonably be considered, having regard to all the circumstances, that one of the main purposes of the particular taxpayer being, becoming or ceasing to be an eligible group entity, in respect of the other taxpayer, a financial institution group entity or a financial holding corporation is to enable any taxpayer to obtain a tax benefit (within the meaning of subsection 245(1)), the particular taxpayer is deemed not to be, to have become, or to remain, as the case may be, an eligible group entity, in respect of the other taxpayer, a financial institution group entity or a financial holding corporation, as the case may be, at that time. Benefits conferred (10) For the purposes of this Part, if a transferor and a transferee file an election (including an amended election) under subsection (4), no benefit is considered to have been conferred on the transferee as a consequence of the election. Consideration for election (11) For the purposes of this Part, if property is acquired at any time by a transferor as consideration for filing an election or amended election with a transferee under subsection (4) (a) where the property was owned by the transferee immediately before that time, (i) the transferee is deemed to have disposed of the property at that time for proceeds equal to the fair market value of the property at that time, and (ii) no amount may be deducted in computing the transferee’s income as a consequence of the transfer of the property, except any amount arising as a consequence of subparagraph (i); (b) the cost at which the property was acquired by the transferor at that time is deemed to be equal to the fair market value of the property at that time; and (c) the transferor is not required to add an amount in computing income solely because of the acquisition at that time of the property. Partnerships (12) For the purposes of this section, (a) a person or partnership that is (or is deemed by this paragraph to be) a member of a particular partnership that is a member of another partnership is deemed to be a member of the other partnership; and (b) a person’s share of the income or loss of a partnership includes the person’s direct or indirect, through one or more other partnerships, share of that income or loss. Anti-avoidance — interest and financing revenues and expenses (13) A particular amount that would, in the absence of this subsection, be included under the description of A in the definition interest and financing revenues , or the description of B in the definition interest and financing expenses , in computing the income or loss of a taxpayer for a taxation year, must not be so included, if (a) an amount in respect of the particular amount is deductible in computing the foreign accrual property income of a corporation that is a foreign affiliate, but not a controlled foreign affiliate, of the taxpayer or of a person or partnership that does not deal at arm’s length with the taxpayer; (b) the particular amount is received or receivable, directly or indirectly and in whole or in part, by the taxpayer, or a partnership of which it is a member, from (i) a person that does not deal at arm’s length with the taxpayer and that is (A) an excluded entity, (B) a natural person, or (C) if the taxpayer is not a financial institution group entity or a financial holding corporation, a financial institution group entity or a financial holding corporation, or (ii) a partnership of which a person described in subparagraph (i) is a member; or (c) one of the main purposes of a transaction or series of transactions is to include the particular amount under the description of A in the definition interest and financing revenues , or the description of B in the definition interest and financing expenses , in computing the income or loss of the taxpayer for a taxation year and (i) the transaction or series results in an amount that (A) is not included in the description of B in the definition interest and financing revenues , or the description of A in the definition interest and financing expenses , in computing the income or loss of the taxpayer, or of a person not dealing at arm’s length with the taxpayer, for a taxation year, and (B) is deductible in computing the income of loss for a taxation year of the taxpayer or a person or partnership not dealing at arm’s length with the taxpayer, or (ii) it can reasonably be considered that, in the absence of the transaction or series, the particular amount or an amount for which the particular amount was substituted (A) would have been included in computing the income or loss for a taxation year (other than as a dividend) of the taxpayer, or a person or partnership not dealing at arm’s length with the taxpayer, and (B) would not have been included under the description of A in the definition interest and financing revenues , or the description of B in the definition interest and financing expenses , in computing the income or loss of the taxpayer or a person not dealing at arm’s length with the taxpayer. Anti-avoidance — excluded entity (14) For the purposes of subparagraph (c)(iv) of the definition excluded entity , a person or partnership is deemed to be tax-indifferent and not to deal at arm’s length with the taxpayer or any eligible group entity in respect of the taxpayer throughout a taxation year of the taxpayer if (a) any portion of the interest and financing expenses of the taxpayer for the year is paid or payable by the taxpayer or any eligible group entity in respect of the taxpayer to the person or partnership as part of a transaction or series of transactions; and (b) it can reasonably be considered that one of the main purposes of the transaction or series is to avoid that portion of the interest and financing expenses being paid or payable to a person or partnership that is tax-indifferent and does not deal at arm’s length with the taxpayer or any eligible group entity in respect of the taxpayer. Deemed eligible group entities (15) If two taxpayers are eligible group entities in respect of a third taxpayer, they are deemed to be eligible group entities in respect of each other. Eligible group entities — related (16) For the purposes of paragraph (a) of the definition eligible group entity in subsection (1) (a) despite subsection 104(1), a reference to a person that is a trust does not include a reference to the trustee or other persons that own or control the trust property; and (b) a corporation or a trust is deemed not to be related to a taxpayer where the corporation or trust would, but for this paragraph, be related to the taxpayer solely because the taxpayer is controlled by His Majesty in right of Canada, His Majesty in right of a province or an entity referred to in any of paragraphs 149(1)(c) to (d.6). Eligible group entities — affiliated (17) For the purposes of paragraph (b) of the definition eligible group entity in subsection (1), a corporation or a trust is deemed not to be affiliated with a taxpayer where that corporation or trust would, but for this subsection, be affiliated with the taxpayer solely because (a) the taxpayer is controlled by His Majesty in right of Canada, His Majesty in right of a province or an entity referred to in any of paragraphs 149(1)(c) to (d.6); or (b) if the corporation or trust is a registered charity or a non-profit organization with whom the taxpayer deals at arm’s length, the corporation or trust is a majority-interest beneficiary (within the meaning of subsection 251.1(3)) of the taxpayer. Filing requirement (18) Each taxpayer shall file with its return of income for the taxation year a prescribed form containing prescribed information for the purpose of determining the deductibility of its interest and financing expenses and determining its exempt interest and financing expenses. Relevant inter-affiliate interest (19) If an amount is paid or payable by a controlled foreign affiliate (referred to in this subsection as the “payer affiliate”) of a taxpayer and received or receivable by a controlled foreign affiliate (referred to in this subsection as the “recipient affiliate”) of the taxpayer, or a taxpayer that is an eligible group entity in respect of the taxpayer, and the amount is relevant inter-affiliate interest of the payer affiliate for an affiliate taxation year (referred to in this subsection as the “payer affiliate year”) and of the recipient affiliate for an affiliate taxation year (referred to in this subsection as the “recipient affiliate year”), (a) the amount included, in respect of the relevant inter-affiliate interest, in the payer affiliate’s relevant affiliate interest and financing expenses for the payer affiliate year is the lesser of (i) the relevant inter-affiliate interest, and (ii) the amount determined by the formula A + B where A is the amount determined by the formula (C − D) × E ÷ C where C is the total of all amounts, each of which would — if the relevant inter-affiliate interest were not paid or payable — be, in respect of the payer affiliate for the payer affiliate year, the specified participating percentage of (A) the taxpayer, or (B) another taxpayer that is an eligible group entity in respect of the taxpayer, and D is the total of all amounts, each of which is, in respect of the recipient affiliate for the recipient affiliate year, the specified participating percentage of (A) the taxpayer, or (B) another taxpayer that is an eligible group entity in respect of the taxpayer, and E is the relevant inter-affiliate interest, and B is the lesser of (A) the relevant inter-affiliate interest, and (B) the amount determined by the formula (F − G) × H ÷ I where F is the payer affiliate’s relevant affiliate interest and financing revenues for the payer affiliate year, G is the amount that would be the payer affiliate’s relevant affiliate interest and financing expenses for the payer affiliate year if the payer affiliate had no relevant inter-affiliate interest for the payer affiliate year, H is the amount determined for E, and I is the total of all amounts, each of which is an amount of relevant inter-affiliate interest of the payer affiliate for the payer affiliate year that would, in the absence of this paragraph, be included in the payer affiliate’s relevant affiliate interest and financing expenses; and (b) the amount included, in respect of the relevant inter-affiliate interest, in the recipient affiliate’s relevant affiliate interest and financing revenues for the recipient affiliate year is the lesser of (i) the amount referred to in E, and (ii) the amount determined by the formula J × K ÷ L where J is the amount determined for B, K is the amount determined for C, and L is the amount determined for D. Group ratio — definitions 18.21 (1) The following definitions apply in this section. acceptable accounting standards  means International Financial Reporting Standards and the generally accepted accounting principles of (a) Canada; (b) Australia; (c) Brazil; (d) member states of the European Union; (e) member states of the European Economic Area; (f) Hong Kong (China); (g) Japan; (h) Mexico; (i) New Zealand; (j) the People’s Republic of China; (k) the Republic of India; (l) the Republic of Korea; (m) Singapore; (n) Switzerland; (o) the United Kingdom; and (p) the United States. ( principes comptables acceptables ) consolidated financial statements  means financial statements prepared in accordance with a relevant acceptable accounting standard in which the assets, liabilities, income, expenses and cash flows of two or more entities are presented as those of a single economic entity and, for greater certainty, the financial statements include the notes to the financial statements. ( états financiers consolidés ) consolidated group  means two or more entities, other than an equity-accounted entity but including an ultimate parent, (each such entity referred to in this section as a “member of the consolidated group”) in respect of which consolidated financial statements are required to be prepared for financial reporting purposes or would be so required if the entities were subject to International Financial Reporting Standards. ( groupe consolidé ) equity-accounted entity  means an entity the net income or loss of which is included in the consolidated financial statements of a consolidated group under the equity method of accounting. ( entité comptabilisée à la valeur de consolidation ) equity interest  means (a) a share of the capital stock of a corporation; (b) an interest as a beneficiary under a trust; (c) an interest as a member of a partnership; or (d) any similar interest in respect of any entity. ( participation au capital ) fair value amount  means any amount reflected in the net income or net loss reported in the consolidated financial statements of a consolidated group for a relevant period where (a) the carrying value of any asset or liability of the consolidated group is measured using the fair value method of accounting; and (b) the amount reflects a change in the carrying value of the asset or liability during the relevant period and is included in either the description of C or H in the definition group adjusted net book income . ( montant de la juste valeur ) group adjusted net book income , of a consolidated group for a relevant period, means the amount determined by the formula A − B where A is the amount determined by the formula C + D + E + F + G where C is the amount, if any, of net income reported in the consolidated financial statements of the group for the period, D is the amount, if any, of income tax expense reported in those statements, E is the amount that would be the specified interest expense of the group for the period if the definition specified interest expense were read without reference to paragraph (b) of the description of A, F is the total of all amounts used in determining the amounts reported in those statements each of which is the amount of (a) a depreciation or amortization expense in respect of an asset, (b) a charge in respect of the impairment or write-off of an asset referred to in paragraph (a), (c) a loss on the disposal of an asset referred to in paragraph (a), (d) if an election is made under subsection (4) and the net fair value amount for the period is negative, the absolute value of the net fair value amount, and (e) an expense, charge, deduction or loss that is similar to any of those referred to in paragraphs (a) to (d), and G is the total of all amounts referred to in the description of D or F that are included in the determination of the net income or loss of an equity-accounted entity, to the extent of the consolidated group’s share of that net income or loss; and B is the amount determined by the formula H + I + J + K + L + M + N where H is the amount, if any, of net loss reported in those statements, I is the amount, if any, of income tax recoverable reported in those statements, J is the specified interest income of the group for the period, K if an election is made under subsection (4) and the net fair value amount for the period is positive, the net fair value amount, L is the total of all amounts used in determining the amounts reported in those statements each of which is the amount of a gain on the disposal of an asset referred to in paragraph (a) of the description of F, to the extent that the sale proceeds do not exceed the original cost of the asset, M is the total of all amounts referred to in the descriptions of I, K and L that is included in the determination of the net income or loss of an equity-accounted entity, to the extent of the consolidated group’s share of that net income or loss, and N is the total of all amounts, each of which is the portion of net income reported in those statements that can reasonably be considered to be earned by a borrower (within the meaning of the definition exempt interest and financing expenses in subsection 18.2(1)) in respect of a borrowing (within the meaning of the definition exempt interest and financing expenses in subsection 18.2(1)) that results in exempt interest and financing expenses of the borrower. ( bénéfice net comptable rajusté du groupe ) group net interest expense , of a consolidated group for a relevant period, means the amount determined by the formula A − B where A is the amount determined by the formula C − D where C is the specified interest expense of the group for the period, and D is the specified interest income of the group for the period; and B is the total of all amounts each of which is an amount determined, in respect of a specified non-member of the group, by the formula E − F where E is the portion of the amount of the specified interest expense of the group for the period that is paid or payable to the specified non-member, and F is the portion of the amount of the specified interest income of the group for the period that is received or receivable from the specified non-member. ( dépenses nettes d’intérêts du groupe ) group ratio , of a consolidated group for a relevant period, means (a) except where paragraph (b) applies, the percentage determined by the formula 1.1 × A ÷ B where A is the group net interest expense of the consolidated group for the relevant period, and B is the group adjusted net book income of the consolidated group for the relevant period; and (b) if the group adjusted net book income of the consolidated group for the relevant period is nil, nil. ( ratio de groupe ) net fair value amount  means the positive or negative amount that is the total of all amounts, each of which is a positive or negative fair value amount in the consolidated financial statements of the consolidated group for a relevant period. ( montant de la juste valeur net ) relevant period  means a period in respect of which the consolidated financial statements of a consolidated group are presented. ( période pertinente ) specified interest expense , of a consolidated group for a relevant period, means the amount determined by the formula A − B where A is the total of all amounts (other than amounts that are included in exempt interest and financing expenses), each of which is (a) an amount of interest expense used in determining the amounts reported in the consolidated financial statements of the consolidated group for the relevant period, (b) an amount of capitalized interest used in determining the amounts reported in those statements, (c) the amount of a guarantee fee, standby charge, arrangement fee or similar fee paid or payable that is used in determining the amounts reported in those statements and that is not included in paragraph (a) or (b), or (d) an amount referred to in any of paragraphs (a) to (c) that is included in the determination of the net income or loss of an equity-accounted entity, to the extent of the consolidated group’s share of that net income or loss; and B is the total of all amounts each of which is the amount of a dividend included in the determination of an amount referred to in any of paragraphs (a) to (d) of the description of A. ( dépenses d’intérêts déterminées ) specified interest income , of a consolidated group for a relevant period, means the amount determined by the formula A − B where A is the total of all amounts, each of which is (a) an amount of interest income used in determining the amounts reported in the consolidated financial statements of the consolidated group for the relevant period, (b) the amount of a guarantee fee, standby charge, arrangement fee or similar fee received or receivable that is used in determining the amounts reported in those statements and that is not included in paragraph (a), or (c) an amount referred to in paragraph (a) or (b) that is included in the determination of the net income or loss of an equity-accounted entity, to the extent of the consolidated group’s share of that income or loss; and B is the total of all amounts each of which is the amount of a dividend included in the determination of an amount referred to in any of paragraphs (a) to (c) of the description of A. ( revenus d’intérêts déterminés ) specified non-member , of a consolidated group for a relevant period, means a particular person or partnership that is not a member of the consolidated group and that, at any time in the period, (a) does not deal at arm’s length with a member of the group; (b) alone or together with persons or partnerships with whom the particular person or partnership does not deal at arm’s length owns, or has the right to acquire, one or more equity interests in a member of the group that (i) provide 25% or more of the votes that could be cast at an annual meeting of the shareholders of the member, if the member is a corporation, or (ii) have 25% or more of the fair market value of all equity interests in the member; or (c) is a person or partnership in respect of which a member of the group — alone or together with persons or partnerships with whom the member does not deal at arm’s length — owns, or has the right to acquire, one or more equity interests in the particular person or partnership that (i) provide 25% or more of the votes that could be cast at an annual meeting of the shareholders of the particular person, if the particular person is a corporation, or (ii) have 25% or more of the fair market value of all equity interests in the particular person or partnership. ( non-membre déterminé ) ultimate parent  means a particular entity if (a) the particular entity is not His Majesty in right of Canada, His Majesty in right of a province or an entity referred to in any of paragraphs 149(1)(c) to (d.6); (b) it holds directly or indirectly an interest in one or more other entities in respect of which it is required to prepare consolidated financial statements for financial reporting purposes, or would be so required if it was subject to International Financial Reporting Standards; and  (c) no entity (other than an entity described in paragraph (a)) holds, directly or indirectly, in the particular entity an interest that is described in paragraph (b). ( mère ultime ) Allocated group ratio amount (2) A taxpayer and each corporation or trust that is, throughout the relevant period, an eligible group entity in respect of that taxpayer and a member of the same consolidated group as the taxpayer (the taxpayer and each of the corporations or trusts being referred to in this subsection and subsection (4) as a “Canadian group member”) may, if the taxpayer is a taxpayer described in subsection (7), elect, and otherwise jointly elect in respect of their taxation years ending in the relevant period (each referred to in this subsection and subsection (4) as a “relevant taxation year”) to allocate amounts in respect of each relevant taxation year and the amount allocated to a member for a relevant taxation year is the amount determined in respect of that member for that relevant taxation year for the purposes of this section and subsection 18.2(2), if (a) the consolidated financial statements of the consolidated group for the relevant period are audited financial statements; (b) the election or amended election (i) specifies the amount allocated to each Canadian group member for each relevant taxation year, and (ii) is filed with the Minister by the taxpayer or a Canadian group member of the taxpayer on or before (A) the latest filing-due date of a Canadian group member for a relevant taxation year, or (B) the day that is 90 days after the sending of (I) a notice of assessment of tax payable under this Part by a Canadian group member for a relevant taxation year, or (II) a notification that no tax is payable under this Part by a Canadian group member for a relevant taxation year; (c) the total of all amounts, each of which is an amount allocated to a Canadian group member for a relevant taxation year, does not exceed the least of (i) the total of all amounts in respect of a member each of which is determined by the formula A × B where A is the group ratio of the consolidated group for the relevant period, and B is the adjusted taxable income of the member for each relevant taxation year, (ii) the group net interest expense of the consolidated group in respect of the relevant period, and (iii) the total of all amounts, each of which would, in the absence of section 257, be the adjusted taxable income of a member for each relevant taxation year; (d) an amended election has not been filed in accordance with this section; and (e) where the election is an amended election, (i) the following conditions are met: (A) in the absence of any assessment, the condition set out in paragraph (c) would be met in respect of a prior election under this subsection made by the Canadian group members for a relevant taxation year under this subsection, and (B) subsection 18.2(9) does not apply to a tax benefit in respect of a prior election for the relevant period, or (ii) the Minister grants permission to amend the prior election under subsection (3). Late or amended election (3) The Minister may extend the time for making an election or grant permission to amend or revoke an election under subsection (2) if (a) the Canadian group members demonstrate to the satisfaction of the Minister that (i) they made reasonable efforts to determine all amounts that may reasonably be considered relevant in making the election, and (ii) the election or amended election, as the case may be, is filed as soon as circumstances permit; and (b) in the opinion of the Minister, the circumstances are such that it would be just and equitable to permit the election to be made, amended or revoked. Fair value adjustments — election (4) For the purposes of calculating group adjusted net book income, the following rules apply: (a) no amounts may be included in paragraph (d) of the description of F or in the description of K in the definition group adjusted net book income for any relevant period unless the Canadian group members jointly elect, for the first relevant taxation year in respect of which the Canadian group members jointly elect under subsection (2), to include net fair value amounts in calculating group adjusted net book income for the relevant period in which the first relevant taxation year ends; (b) if an election to include net fair value amounts in the calculation is not made in the first relevant taxation year, each Canadian group member is deemed not to have so elected in that taxation year and any subsequent taxation year; and (c) if an election to include net fair value amounts in the calculation is made in the first relevant taxation year, each Canadian group member is deemed to have so elected in that taxation year and any subsequent taxation year. Assessment (5) If an election or amended election has been made under subsection (2), the Minister shall, notwithstanding subsections 152(4) and (5), assess or reassess the tax, interest or penalties payable under this Act by any taxpayer for any relevant taxation year as is necessary to give effect to the election or amended election. Use of accounting terms (6) For the purposes of the definitions consolidated financial statements , consolidated group , equity-accounted entity , fair value amount , group adjusted net book income , specified interest expense , specified interest income and ultimate parent in subsection (1), a term that is not defined under this Act has the meaning assigned to the term for financial reporting purposes under the relevant acceptable accounting standards. Single member group (7) For the purposes of this section, if a taxpayer resident in Canada is not a member of a consolidated group for a relevant period, (a) the taxpayer is deemed to be an eligible group entity in respect of itself; (b) the taxpayer is deemed to be (i) a member of a consolidated group that comprises only itself, and (ii) the ultimate parent of the group; and (c) the taxpayer’s financial statements are deemed to be consolidated financial statements. Anti-avoidance — specified non-member (8) A particular person or partnership that is not a member of a consolidated group for a relevant period is deemed to be a specified non-member in respect of the group for the period if a portion of the amount of the specified interest expense of the group is paid or payable by a member of the group to the particular person or partnership as part of a transaction or series of transactions where it can reasonably be considered that one of the main purposes of the transaction or series is to avoid the inclusion of that portion in the determination of the amount for E in the definition group net interest expense in subsection (1). (2) Subsection (1) applies in respect of taxation years of a taxpayer that begin on or after October 1, 2023, except that (a) sections 18.2 and 18.21 of the Act, as enacted by subsection (1), also apply in respect of a taxation year of a taxpayer that begins before, and ends after, October 1, 2023 if (i) any of the taxpayer’s three immediately preceding taxation years was, because of a transaction or event or a series of transactions or events, shorter than it would have been in the absence of that transaction, event or series, and (ii) it can reasonably be considered that one of the purposes of the transaction, event or series was to defer the application of section 18.2 or 18.21 of the Act, as enacted by subsection (1), or the application of paragraph 12(1)(l.2) of the Act, as enacted by subsection 2 (1), to the taxpayer or to increase an amount of excess capacity of any taxpayer determined under paragraphs (c) and (d); (b) paragraph (a) of the definition ratio of permissible expenses in subsection 18.2(1) of the Act, as enacted by subsection (1), is to be read, in respect of a taxpayer, as if its reference to “40%” were a reference to “30%” if (i) any taxation year of the taxpayer that begins after 2022 but before 2024 is, because of a transaction or event or a series of transactions or events, shorter than it would have been in the absence of that transaction, event or series, and (ii) it can reasonably be considered that one of the purposes of the transaction, event or series was to defer the application of paragraph (b) of that definition to the taxpayer; (c) for the purpose of determining the cumulative unused excess capacity of a taxpayer that is a corporation or a fixed interest commercial trust for a particular taxation year, the taxpayer’s excess capacity for each of the three taxation years (in this paragraph and paragraph (d), each referred to as a “pre-regime year”) immediately preceding the first taxation year of the taxpayer in respect of which subsection (1) applies (in this paragraph and paragraph (d) referred to as the “first regime year” of the taxpayer) is deemed to be nil unless (i) the taxpayer and each corporation or fixed interest commercial trust that is an eligible group entity in respect of the taxpayer at the end of the first regime year (in this subsection referred to as an “eligible pre-regime group entity”) jointly elect in prescribed form to have paragraph (d) apply in respect of the taxpayer, (ii) the election or amended election is filed with the Minister by the taxpayer or by an eligible pre-regime group entity of the taxpayer on or before the earliest filing-due date for the first regime year of the taxpayer or of any eligible pre-regime group entity of the taxpayer, and (iii) in the election the taxpayer and the eligible pre-regime group entities (A) allocate to the taxpayer or eligible pre-regime group entities in respect of the taxpayer, for the purpose of determining the taxpayer’s cumulative unused excess capacity for the particular taxation year and any other taxation year in which the taxpayer’s ratio of permissible expenses is the same as in the particular year, one or more portions of the group net excess capacity (as defined in subparagraph (d)(vi)) for the pre-regime years that is determined for that purpose, and (B) set out, for the taxpayer and each eligible pre-regime group entity, the excess interest (as defined in subparagraph (d)(ii)) for each pre-regime year, the excess capacity otherwise determined (as defined in subparagraph (d)(iii)) for each pre-regime year and the net excess capacity (as defined in subparagraph (d)(v)) for the pre-regime years; and (d) if the conditions set out in subparagraphs (c)(i) to (iii) are satisfied, for the purpose of determining the taxpayer’s cumulative unused excess capacity for a particular taxation year and any other taxation year in which the taxpayer’s ratio of permissible expenses is the same as in the particular year, the taxpayer’s excess capacity for a pre-regime year (other than for the purposes of this paragraph) is determined in accordance with the following rules: (i) for the purposes of this paragraph, the determination of whether a corporation or a fixed interest commercial trust is an eligible pre-regime group entity in respect of the taxpayer is to be made at the end of the taxpayer’s first regime year, (ii) the excess interest , of the taxpayer or an eligible pre-regime group entity in respect of the taxpayer, for a pre-regime year, means the amount that would be determined for the pre-regime year under paragraph (b) of the definition absorbed capacity in subsection 18.2(1) of the Act, as enacted by subsection (1), (iii) the excess capacity otherwise determined means the amount that would be the excess capacity of the taxpayer or an eligible pre-regime group entity in respect of the taxpayer for a pre-regime year, if that amount were determined under the definition excess capacity in subsection 18.2(1) of the Act, as enacted by subsection (1), (iv) for the purposes of this paragraph, if the taxpayer or an eligible pre-regime group entity in respect of the taxpayer was subject to a loss restriction event at the beginning of any of its pre-regime years, its excess capacity otherwise determined and its excess interest for any pre-regime year that precedes that year are deemed to be nil, (v) the net excess capacity of a taxpayer for its pre-regime years means the amount, if any, by which the total of all amounts each of which is the excess capacity otherwise determined of the taxpayer for a pre-regime year exceeds the total of all amounts each of which is the excess interest of the taxpayer for a pre-regime year, (vi) the group net excess capacity for the pre-regime years means the amount, if any, by which the total of all amounts each of which is the excess capacity otherwise determined of the taxpayer or an eligible pre-regime group entity in respect of the taxpayer (other than a taxpayer or eligible pre-regime group entity that is, at any time in a pre-regime year, a financial institution group entity or a person exempt from tax under Part I of the Act) for a pre-regime year exceeds the total of all amounts each of which is the excess interest of the taxpayer or an eligible pre-regime group entity (other than a taxpayer or eligible pre-regime group entity that is, at any time in a pre-regime year, a financial institution group entity or a person exempt from tax under Part I of the Act) for a pre-regime year, (vii) for the purposes of determining the excess capacity otherwise determined or the excess interest of the taxpayer or an eligible pre-regime group entity for a pre-regime year, the net excess capacity of the taxpayer or an eligible pre-regime group entity for its pre-regime years and the group net excess capacity for pre-regime years, (A) the ratio of permissible expenses is the same as the taxpayer’s ratio of permissible expenses for the particular year, and (B) if it is the case that, in respect of a pre-regime year, the conditions set out in subsection 18.21(2) of the Act, as enacted by subsection (1), would be met in respect of the taxpayer and each eligible pre-regime group entity that is a member of the same consolidated group in respect of the year — if the reference in subsection 18.21(2) to the “filing–due date of a Canadian group member for the year” were read as a reference to the “filing-due date of any Canadian group member for its first regime year” — then subsection 18.21(2) of the Act, as enacted by subsection (1), applies in respect of the taxpayer and each such eligible pre-regime group entity for the pre-regime year, (viii) the taxpayer’s excess capacity for a pre-regime year is deemed to be (A) if the taxpayer’s net excess capacity for its pre-regime years is not a positive amount, nil, and (B) in any other case, the lesser of (I) the taxpayer’s excess capacity otherwise determined for the pre-regime year, and (II) the portion, if any, of the group net excess capacity allocated to the taxpayer for the year in the joint election under paragraph (c), and (ix) notwithstanding subparagraph (viii), the taxpayer’s excess capacity for each pre-regime year is deemed to be nil if (A) the total of all amounts each of which is a portion of the group net excess capacity that is allocated to the taxpayer or an eligible pre-regime group entity in respect of the taxpayer for a pre-regime year in the joint election under paragraph (c) is greater than the group net excess capacity, or (B) the total of all amounts each of which is a portion of the group net excess capacity that is allocated to the taxpayer for a pre-regime year under the joint election is greater than the taxpayer’s net excess capacity for its pre-regime years; (e) an amended election is deemed to be filed in accordance with subparagraph (c)(ii) if (i) as a result of an assessment or reassessment, the amount of excess interest or excess capacity otherwise determined of the taxpayer, or any eligible pre-regime group entity (other than a financial institution group entity or a person exempt from tax under Part I of the Act) in respect of the taxpayer, is different from the amount reported by the taxpayer or eligible group entity in a prior election under this subsection, (ii) in the absence of the assessment or reassessment, the taxpayer’s excess capacity for each pre-regime year would not be deemed to be nil under subparagraph (d)(ix) based on a prior election, and (iii) the amended election is filed within 90 days of the reassessment; (f) if an election or amended election has been made under paragraph (c), the Minister shall, despite subsections 152(4) and (5) of the Act, assess or reassess the tax, interest or penalties payable under the Act by any taxpayer for any relevant taxation year as is necessary to give effect to the election or amended election; and (g) despite paragraphs (c) and (e), the Minister may accept an election or amended election if (i) the taxpayer and the eligible pre-regime group entities in respect of the taxpayer demonstrate to the satisfaction of the Minister that (A) they made reasonable efforts to determine all amounts that may reasonably be considered relevant in making the election or amended election, and (B) the election or amended election, as the case may be, is filed as soon as circumstances permit, and (ii) in the opinion of the Minister, the circumstances are such that it would be just and equitable to permit the election to be made or amended. 8 (1) The Act is amended by adding the following after section 18.3: Hybrid mismatch arrangements — definitions 18.4 (1) The following definitions apply in this section and paragraph 20(1)(yy). Canadian ordinary income , of a taxpayer for a taxation year in respect of a payment, means an amount that is (a) if the taxpayer is not a partnership, included in respect of the payment in computing, in the case of a taxpayer resident in Canada, the income of the taxpayer for the purposes of this Part — or, in the case of a taxpayer that is a non-resident person, the taxable income earned in Canada of the taxpayer — for the year, except to the extent that (i) the amount is included in the Canadian ordinary income of any taxpayer under paragraph (b) or (c), (ii) the taxpayer is entitled to a deduction under section 112 or 113 in respect of the payment, or (iii) the amount can otherwise reasonably be considered to be excluded, reduced, offset or otherwise effectively sheltered from tax under this Part by reason of any exemption, exclusion, deduction, credit (other than a credit for a tax substantially similar to tax under Part XIII) or other form of relief under this Act that (A) applies specifically in respect of all or a portion of the amount and not in computing income generally, or (B) arises in respect of the payment; (b) if the taxpayer is a partnership, determined by the formula A × B ÷ C − D where A is an amount that is included in respect of the payment in computing the income or loss of the partnership from any source, or from sources in a particular place, for the year, except to the extent that the amount (i) is included in the Canadian ordinary income of any taxpayer under paragraph (c), or (ii) can reasonably be considered to be excluded, reduced, offset or otherwise sheltered by any reason described in subparagraph (a)(iii), B is the total of all amounts, each of which is, in respect of the partnership’s income or loss from that source or the sources in the particular place for the year, (i) the share of a member of the partnership that is a person resident in Canada, or (ii) the share of a member of the partnership that is a non-resident person to the extent it is included in computing the non-resident person’s taxable income earned in Canada, C is the income or loss of the partnership from the source, or the sources in the particular place, for the year, and D is the total of all amounts, each of which is an amount deductible, in respect of the payment, by a member of the partnership under section 112 or 113; or (c) determined by the formula E × F where E is the amount determined by the formula G × H where G is an amount that is included in respect of the payment in computing the foreign accrual property income of a controlled foreign affiliate of the taxpayer for a taxation year (as defined in subsection 95(1)) of the affiliate ending in the year, except to the extent the amount can reasonably be considered to be excluded, reduced, offset or otherwise effectively sheltered for any reason described in subparagraph (a)(iii), and H is the aggregate participating percentage (as defined in subsection 91(1.3)) of the taxpayer in respect of the affiliate for the taxation year of the affiliate, and F is (i) if the taxpayer is a partnership, the amount determined by the formula I ÷ E where I is the total of all amounts each of which is a share of the amount determined for E of a member of the partnership that is a person resident in Canada, and (ii) in any other case, 1. ( revenu ordinaire canadien ) controlled foreign company tax regime  means a set of provisions under the tax laws of a particular country other than Canada under which a direct or indirect shareholder of an entity that is located in a country other than the particular country is subject to current taxation in respect of its share of all or part of the income earned by the entity, irrespective of whether that income is distributed currently to the shareholder. ( régime fiscal des sociétés étrangères contrôlées ) deductible , in relation to an amount in respect of a payment, in computing relevant foreign income or profits, includes any relief that arises in respect of the payment and is equivalent in effect to a deduction, including  (a) an exemption or exclusion in computing the relevant foreign income or profits; and (b) a refund of, or credit that can be applied to reduce or offset, income or profits tax paid or payable to a government of a country other than Canada in respect of the relevant foreign income or profits. ( déductible ) entity  has the same meaning as in subsection 95(1). ( entité ) equity interest  means any of the following:   (a) a share of the capital stock of a corporation; (b) an interest as a beneficiary under a trust; (c) an interest as a member of a partnership; or (d) any similar interest in respect of any entity. ( participation au capital ) equity or financing return  means a payment that can reasonably be considered to be in respect of, or determined by reference to, (a) revenue, profit, cash flow, commodity price or any other similar criterion; (b) dividends paid or payable to shareholders of any class of shares of the capital stock of a corporation, or income or capital paid or payable to any member of a partnership or beneficiary under a trust, or any other distribution in respect of any entity; or (c) an amount that is, or is on account of, in lieu of payment of or in satisfaction of, interest, or that is otherwise compensation for the use of money. ( rendement financier ou de capitaux propres ) exempt dealer compensation payment  means a payment that (a) is a dealer compensation payment (as defined in subsection 260(1)); (b) is received by a registered securities dealer resident in Canada, as compensation for a taxable dividend paid on a share of the capital stock of a public corporation, from a non-resident corporation (referred to in this definition as the “affiliate”) that, at the time the payment is received, (i) is a controlled foreign affiliate of (A) the registered securities dealer, or (B) another taxpayer that does not deal at arm’s length with the registered securities dealer, (ii) has a substantial market presence in a particular country other than Canada, (iii) makes the payment in the ordinary course of a business of trading in securities, if (A) the business is carried on by the affiliate as a foreign bank (as defined in subsection 95(1)), a trust company, a credit union, an insurance corporation or a trader or dealer in securities, (B) the activities of the business are regulated under the laws of (I) the particular country, (II) another country under the laws of which the affiliate is governed and any of exists, was (unless the affiliate was continued in any jurisdiction) formed or organized, or was last continued and of each country in which the business is carried on through a permanent establishment, or (III) if the affiliate is related to a corporation, another country under the laws of which the related corporation is governed and any of exists, was (unless the related corporation was continued in any jurisdiction) formed or organized, or was last continued, if those regulating laws are recognized under the laws of the country in which the business is principally carried on and all of those countries are members of the European Union, and (iv) conducts the business, directly or indirectly, (A) principally with persons that (I) deal at arm’s length with the affiliate, and (II) are resident, or carry on business through a permanent establishment, in the particular country, and (B) in competition with other entities that (I) deal at arm’s length with the affiliate, and (II) have a substantial market presence in the particular country; and (c) does not arise under, or in connection with, a structured arrangement. ( paiement compensatoire (courtier) exonéré ) financial instrument  means  (a) a debt; (b) an equity interest or any right that may reasonably be considered to replicate a right to participate in profits or gain of any entity; or (c) any other arrangement that gives rise to an equity or financing return. ( instrument financier ) foreign expense restriction rule  means a provision under the tax laws of a country other than Canada that can reasonably be considered to (a) have an effect, or be intended to have an effect, that is substantially similar to that of subsection 18(4); or (b) have been enacted or otherwise brought into effect by the country with the intention of implementing, in whole or in part, (i) any of the recommendations set out in Limiting Base Erosion Involving Interest Deductions and Other Financial Payments, Action 4 – 2016 Update , published by the Organisation for Economic Co-operation and Development, or (ii) the Global Anti-Base Erosion Model Rules set out in Tax Challenges Arising from the Digitalisation of the Economy – Global Anti-Base Erosion Model Rules (Pillar Two) , published by the Organisation for Economic Co-operation and Development. ( règle étrangère de restriction des dépenses ) foreign hybrid mismatch rule  means a provision, under the tax laws of a country other than Canada, that can reasonably be considered to (a) have an effect that is substantially similar to that of a provision under this section, section 12.7 or subsection 113(5); or (b) have been enacted or otherwise brought into effect by the country with the intention of implementing, in whole or in part, Neutralising the Effects of Hybrid Mismatch Arrangements, Action 2 – 2015 Final Report published by the Organisation for Economic Co-operation and Development, as amended from time to time. ( règle étrangère d’asymétrie hybride ) foreign ordinary income , of an entity for a foreign taxation year in respect of a payment, means an amount that is determined by the formula A − B − C − D − E − F where A is an amount (referred to in this definition as the “relevant amount”) that is included in respect of the payment in computing relevant foreign income or profits of the entity for the year (other than income or profits in respect of which the entity is subject to a tax substantially similar to tax under Part XIII, or a tax under a controlled foreign company tax regime or a specified minimum tax regime) because the entity is a recipient of the payment or has a direct or indirect equity interest in a recipient of the payment; B is (a) if the relevant amount is included in computing relevant foreign income or profits in respect of which the entity is subject to an income or profits tax that is charged at a nil rate, the relevant amount, or (b) in any other case, nil; C is any portion of the relevant amount that is included in computing relevant foreign income or profits of the entity for the year because of any foreign hybrid mismatch rule (other than any rule that is substantially similar in effect to subsection 113(5)); D is any portion of the relevant amount that can reasonably be considered to be excluded, reduced, offset or otherwise effectively sheltered from income or profits tax by reason of any exemption, exclusion, deduction, credit (other than a credit for tax payable under Part XIII) or other form of relief that (a) applies specifically in respect of all or a portion of the relevant amount and not in computing the entity’s relevant foreign income or profits in general, or (b) arises in respect of the payment; E is the amount determined by the formula (A − C − D) × G ÷ H where G is the total of all amounts, each of which is an amount that (i) meets the following conditions: (A) is repaid or repayable in respect of income or profits tax paid or payable by the entity to the government of a country other than Canada in respect of the relevant foreign income or profits for the year, and (B) is not repaid or repayable because a loss is used to reduce or offset the relevant foreign income or profits for the year, or (ii) is paid or payable in respect of a credit that can reasonably be considered to reduce or offset, directly or indirectly, the income or profits tax referred to in clause (i)(A), and H is the total amount of the income or profits tax referred to in clause (i)(A) of the description of G; and F is the amount determined by the formula (A − C − D − E) × (1 − I ÷ J) where I is the rate at which the income or profits tax referred to in clause (i)(A) in the description of G is charged in respect of the relevant amount, and J is the highest rate at which an income or profits tax imposed by the government of the country is charged in respect of an amount of income in respect of a financial instrument. ( revenu ordinaire étranger ) foreign taxation year  of an entity means the period for which the accounts of the entity have been ordinarily made up for the purpose of computing relevant foreign income or profits of the entity, but no such period may exceed 53 weeks. ( année d’imposition étrangère ) hybrid mismatch amount , in respect of a payment, means (a) if the payment arises under a hybrid financial instrument arrangement, the amount of the hybrid financial instrument mismatch in respect of the payment; (b) if the payment arises under a hybrid transfer arrangement, the amount of the hybrid transfer mismatch in respect of the payment; or (c) if the payment arises under a substitute payment arrangement, the amount of the substitute payment mismatch in respect of the payment. ( montant de l’asymétrie hybride ) hybrid mismatch arrangement  under which a payment arises means (a) a hybrid financial instrument arrangement under which the payment arises; (b) a hybrid transfer arrangement under which the payment arises; or  (c) a substitute payment arrangement under which the payment arises. ( dispositif hybride ) payer  of a payment includes any entity that has an obligation to pay, credit or confer, either immediately or in the future and either absolutely or contingently, the payment to an entity. ( payeur ) payment  includes any amount or benefit that any entity has an obligation to pay, credit or confer, either immediately or in the future and either absolutely or contingently, to an entity. ( paiement ) recipient  of a payment includes any entity that has an entitlement to be paid, credited or conferred, either immediately or in the future and either absolutely or contingently, the payment by an entity. ( bénéficiaire ) relevant foreign income or profits  of an entity means income or profits in respect of which the entity is subject to an income or profits tax that is imposed by the government of a country other than Canada. ( revenus ou bénéfices étrangers pertinents ) specified entity , in respect of another entity at any time, means a particular entity if, taking into consideration the rules in subsection (17),   (a) the particular entity at that time, either alone or together with entities with whom the particular entity does not deal at arm’s length, owns directly or indirectly equity interests in the other entity that (i) provide 25% or more of the votes that could be cast at an annual meeting of the shareholders, if the other entity is a corporation, or (ii) have 25% or more of the fair market value of all equity interests in the other entity; (b) the condition in paragraph (a) would be satisfied if the references in that paragraph to “particular entity” were read as references to “other entity” and the references to “other entity” were read as references to “particular entity”; or (c) a third entity at that time, either alone or together with entities with which the third entity does not deal at arm’s length, owns directly or indirectly equity interests in the particular entity and the other entity that, in respect of each of the particular entity and the other entity, (i) provide 25% or more of the votes that could be cast at an annual meeting of the shareholders, if the particular entity or the other entity, as the case may be, is a corporation, or (ii) have 25% or more of the fair market value of all equity interests in the particular entity or the other entity, as the case may be. ( entité déterminée ) specified minimum tax regime  means (a) any provisions in respect of global intangible low-taxed income (as defined in section 951A of the Internal Revenue Code of 1986 of the United States, as amended from time to time); (b) any provisions under the tax laws of a country that can reasonably be considered to have been enacted or otherwise brought into effect by the country with the intention of implementing, in whole or in part, the Global Anti-Base Erosion Model Rules set out in Tax Challenges Arising from the Digitalisation of the Economy – Global Anti-Base Erosion Model Rules (Pillar Two) , published by the Organisation for Economic Co-operation and Development; or (c) any provisions under the tax laws of a country that can reasonably be considered to have been enacted or otherwise brought into effect by the country with the intention of implementing, in whole or in part, a Qualified Domestic Minimum Top-up Tax (as defined in the model rules referred to in paragraph (b)). ( régime fiscal minimum déterminé ) structured arrangement  means any transaction, or series of transactions, if  (a) the transaction or series includes a payment that gives rise to a deduction/non-inclusion mismatch; and (b) it can reasonably be considered, having regard to all the facts and circumstances, including the terms or conditions of the transaction or series, that (i) portion of any economic benefit arising from the deduction/non-inclusion mismatch is reflected in the pricing of the transaction or series, or (ii) the transaction or series was otherwise designed to, directly or indirectly, give rise to the deduction/non-inclusion mismatch. ( dispositif structuré ) transaction  includes an arrangement or event. ( opération ) Interpretation (2) This section, section 12.7 and subsection 113(5), as well as related provisions of the Act and the Income Tax Regulations , relate to the implementation of Neutralising the Effects of Hybrid Mismatch Arrangements, Action 2 — 2015 Final Report published by the Organisation for Economic Co-operation and Development and, unless the context otherwise requires, are to be interpreted consistently with that report, as amended from time to time. Primary rule — conditions for application (3) Subsection (4) applies in respect of a payment if (a) in the absence of this section and subsection 18(4), an amount would be deductible, in respect of the payment, in computing a taxpayer’s income from a business or property for a taxation year; and (b) that amount is the deduction component of a hybrid mismatch arrangement under which the payment arises. Primary rule — consequences (4) If this subsection applies in respect of a payment, notwithstanding any other provision of this Act, in computing a taxpayer’s income from a business or property for a taxation year, no deduction shall be made in respect of the payment to the extent of the hybrid mismatch amount in respect of the payment. Structured arrangements — exception (5) If subsection (4) or 12.7(3) would, in the absence of this subsection, apply in respect of a payment in computing a taxpayer’s income from a business or property for a taxation year, that subsection does not apply in respect of the payment if (a) there would be no hybrid mismatch arrangement in respect of the payment if the payment did not arise under, or in connection with, a structured arrangement; (b) at the time that the taxpayer entered into, or acquired an interest in any part of a transaction that is, or is part of, the structured arrangement, it was not reasonable to expect that any of the following entities were aware of the deduction/non-inclusion mismatch arising from the payment: (i) the taxpayer, (ii) an entity with which the taxpayer does not deal at arm’s length, or (iii) a specified entity in respect of the taxpayer; and (c) none of the entities described in subparagraphs (b)(i) to (iii) shared in the value of any economic benefit resulting from the deduction/non-inclusion mismatch. Deduction/non-inclusion mismatch — conditions (6) For the purposes of this section and section 12.7, a payment gives rise to a deduction/non-inclusion mismatch if (a) the following condition is met: A > B where A is the total of all amounts, each of which would, in the absence of this section and subsection 18(4), be deductible in respect of the payment, in computing the income of a taxpayer from a business or property under this Part for a taxation year (referred to in this paragraph as the “relevant year”), and B is the total of all amounts each of which, in respect of the payment, (i) can reasonably be expected to be — and actually is — foreign ordinary income of an entity for a foreign taxation year that begins on or before the day that is 12 months after the end of the relevant year, or (ii) is Canadian ordinary income of a taxpayer for a taxation year that begins on or before the day that is 12 months after the end of the relevant year; or (b) the following condition is met: C > D where C is the total of all amounts, each of which, in the absence of any foreign expense restriction rule, would be — or would reasonably be expected to be — deductible, in respect of the payment, in computing relevant foreign income or profits of an entity for a foreign taxation year (referred to in this paragraph as the “relevant foreign year”), and D is the total of all amounts, each of which, in respect of the payment, (i) would, in the absence of section 12.7, be Canadian ordinary income of a taxpayer for a taxation year that begins on or before the day that is 12 months after the end of the relevant foreign year, or (ii) can reasonably be expected to be — and actually is — foreign ordinary income of another entity for a foreign taxation year that begins on or before the day that is 12 months after the end of the relevant foreign year. Deduction/non-inclusion mismatch — application (7) For the purposes of this section and section 12.7, if a payment gives rise to a deduction/non-inclusion mismatch, (a) the amount, if any, determined for A in paragraph (6)(a) in respect of the payment is the deduction component of the deduction/non-inclusion mismatch; (b) the amount, if any, determined for C in paragraph (6)(b) in respect of the payment is the foreign deduction component of the deduction/non-inclusion mismatch; and (c) the amount of the deduction/non-inclusion mismatch arising from the payment is determined by the formula A − B where A is (i) if paragraph (6)(a) applies in respect of the payment, the deduction component of the deduction/non-inclusion mismatch, or (ii) if paragraph (6)(b) applies in respect of the payment, the foreign deduction component of the deduction/non-inclusion mismatch, and B is (i) if subparagraph (i) of the description of A applies, (A) where the amount determined for B in paragraph (6)(a) in respect of the payment is equal to 10% or less of the amount determined for A, nil, and (B) in any other case, the amount determined for B in paragraph (6)(a) in respect of the payment, or (ii) if subparagraph (ii) of the description of A applies, (A) where the amount determined for D in paragraph (6)(b) in respect of the payment is equal to 10% or less of the amount determined for A, nil, and (B) in any other case, the amount determined for D in paragraph (6)(b) in respect of the payment. No double counting (8) Any amount that has already been included, directly or indirectly, in computing foreign ordinary income or Canadian ordinary income of a particular entity in respect of a payment shall not be included, directly or indirectly, in computing foreign ordinary income or Canadian ordinary income of the particular entity or any other entity in respect of the payment. Notional interest expense — deemed payment (9) For the purposes of this section (other than this subsection) and section 12.7, if, in the absence of any foreign expense restriction rule, an amount (referred to in this subsection as the “deductible amount”) would be, or can reasonably be expected to be, deductible in respect of a notional interest expense on a debt in computing the relevant foreign income or profits of an entity for a foreign taxation year (a) the entity is deemed to make a payment in the year under the debt to the creditor in respect of the debt, in an amount equal to the deductible amount, and the creditor is deemed to be a recipient of the payment; (b) the deductible amount is deemed to be in respect of the payment; (c) any amount that is foreign ordinary income or Canadian ordinary income of the creditor in respect of notional interest income on the debt, that is calculated in respect of the same time period as the notional interest expense, is deemed to arise in respect of the payment; and (d) any deduction/non-inclusion mismatch arising from the payment is deemed to satisfy the condition in paragraph (10)(d). Hybrid financial instrument arrangement — conditions (10) For the purposes of this section and section 12.7, a payment arises under a hybrid financial instrument arrangement if (a) the payment (other than a payment described in paragraphs (14)(a) to (d)) arises under, or in connection with, a financial instrument; (b) any of the following conditions is satisfied: (i) a payer of the payment does not deal at arm’s length with, or is a specified entity in respect of, a recipient of the payment, or (ii) the payment arises under, or in connection with, a structured arrangement; (c) the payment gives rise to a deduction/non-inclusion mismatch; and (d) it can reasonably be considered that the deduction/non-inclusion mismatch (i) arises in whole or in part because of a difference in the treatment of the financial instrument — or of one or more transactions, either alone or together, where the transaction or transactions are part of a transaction or series of transactions that includes the payment or relates to the financial instrument — for tax purposes under the laws of more than one country that is attributable to the terms or conditions of the financial instrument or transaction or transactions, or (ii) would arise in whole or in part because of a difference described in subparagraph (i), if any other reason for the deduction/non-inclusion mismatch were disregarded. Hybrid financial instrument arrangement — amount (11) For the purposes of this section and section 12.7, if a payment arises under a hybrid financial instrument arrangement, (a) the amount of the hybrid financial instrument mismatch, in respect of the payment, is the portion of the amount of the deduction/non-inclusion mismatch arising from the payment that meets the condition in subparagraph (10)(d)(i) or (ii); (b) the deduction component, if any, of the deduction/non-inclusion mismatch is the deduction component of the hybrid financial instrument arrangement in respect of the payment; and (c) the foreign deduction component, if any, of the deduction/non-inclusion mismatch is the foreign deduction component of the hybrid financial instrument arrangement in respect of the payment. Hybrid transfer arrangement — conditions (12) For the purposes of this section and section 12.7, a payment (other than an exempt dealer compensation payment) arises under a hybrid transfer arrangement if (a) the payment arises under, or in connection with, (i) a transaction or series of transactions (referred to in this subsection as the “transfer arrangement”) that includes a loan or a disposition or other transfer by an entity to another entity (referred to in this subsection as the “transferor” and “transferee”, respectively) of all or a portion of a financial instrument (referred to in this subsection as the “transferred instrument”), or (ii) the transferred instrument; (b) any of the following conditions is satisfied: (i) at any time during the transfer arrangement (A) a payer of the payment does not deal at arm’s length with, or is a specified entity in respect of, a recipient of the payment, or (B) the transferor does not deal at arm’s length with, or is a specified entity in respect of, the transferee, or (ii) the payment arises under, or in connection with, a structured arrangement; (c) the payment gives rise to a deduction/non-inclusion mismatch; and (d) it can reasonably be considered that the deduction/non-inclusion mismatch arises (or would arise, if any reason for the mismatch other than the reasons described in subparagraphs (i) and (ii) were disregarded), in whole or in part, because (i) if the payment arises as compensation for a particular payment under the transferred instrument, (A) the tax laws of one country treat all or a portion of the payment as though it has the same character as, or represents, the particular payment, in determining the tax consequences to an entity that is a recipient of the payment but not of the particular payment, and (B) the tax laws of another country treat all or a portion of the payment as a deductible expense of another entity, or (ii) in any other case, (A) the tax laws of one country treat one or more transactions included in the transfer arrangement, either alone or together, as or as equivalent to a borrowing or other indebtedness, or treat all or a portion of the payment as arising under, or in connection with, a borrowing or other indebtedness, and the tax laws of another country do not treat the transaction or transactions, or the payment, as the case may be, in that manner, or (B) the tax laws of one country treat the payment, or any other payment arising under, or in connection with, the transfer arrangement or transferred instrument, as though the payment or other payment, as the case may be, was derived by one entity and the tax laws of another country treat the payment or other payment, as the case may be, as though it was derived by another entity, because of a difference in how the countries treat one or more transactions included in the transfer arrangement, either alone or together. Hybrid transfer arrangement — amount (13) For the purposes of this section and section 12.7, if a payment arises under a hybrid transfer arrangement, (a) the amount of the hybrid transfer mismatch, in respect of the payment, is the portion of the amount of the deduction/non-inclusion mismatch arising from the payment that meets a condition in subparagraph (12)(d)(i) or (ii); (b) the deduction component, if any, of the deduction/non-inclusion mismatch is the deduction component of the hybrid transfer arrangement in respect of the payment; and (c) the foreign deduction component, if any, of the deduction/non-inclusion mismatch is the foreign deduction component of the hybrid transfer arrangement in respect of the payment. Substitute payment arrangement — conditions (14) For the purposes of this section and section 12.7, a payment arises under a substitute payment arrangement if (a) the payment arises under, or in connection with, an arrangement under which all or a portion of a financial instrument is loaned or disposed of or otherwise transferred by an entity to another entity (referred to in this subsection as the “transferor” and “transferee”, respectively); (b) the transferee, or an entity that does not deal at arm’s length with the transferee, is a payer of the payment; (c) the transferor, or an entity that does not deal at arm’s length with the transferor, is a recipient of the payment; (d) all or a portion of the payment can reasonably be considered to represent or otherwise reflect, or be determined by reference to (i) another payment (referred to in this subsection and subsection (15) as the “underlying return”) that arises under, or in connection with, the financial instrument, or (ii) revenue, profit, cash flow, commodity price or any other similar criterion; (e) any of the following conditions is satisfied: (i) at any time during that series of transactions that includes the arrangement, (A) a payer of the payment does not deal at arm’s length with, or is a specified entity in respect of, a recipient of the payment, or (B) the transferor does not deal at arm’s length with, or is a specified entity in respect of, the transferee, or (ii) the payment arises under, or in connection with, a structured arrangement; (f) the payment (i) would give rise to a deduction/non-inclusion mismatch if any Canadian ordinary income of a taxpayer for a taxation year and any foreign ordinary income of an entity for a foreign taxation year, in respect of the payment, were limited to the portion of those amounts that can reasonably be considered to relate to the portion of the payment that is described in paragraph (d), or (ii) if the condition in subparagraph (i) is not met, would meet the condition in that subparagraph if any amount that, in the absence of this section, subsection 18(4) or any foreign expense restriction rule, would be — or would reasonably be expected to be — deductible by the transferee in respect of the underlying return were instead considered to be deductible in respect of the payment, to the extent that the amount (A) would be — or would reasonably be expected to be — deductible by the transferee in computing its income from a business or property for a taxation year or its relevant foreign income or profits for a foreign taxation year, as the case may be, and (B) would be — or would reasonably be expected to be — so deductible because the underlying return accrued (or is considered to accrue) for a period before the transfer; (g) one of the following conditions is satisfied: (i) the transferee or an entity that does not deal at arm’s length with the transferee is a recipient of the underlying return — or, if subparagraph (d)(ii) applies, a distribution under the financial instrument — and the amount of the underlying return or the distribution, as the case may be, exceeds the total of all amounts, in respect of the underlying return or the distribution, as the case may be, each of which can reasonably be expected to be — and actually is — foreign ordinary income for a foreign taxation year or Canadian ordinary income for a taxation year, as the case may be, of the recipient, (ii) the condition in subparagraph (i) would be satisfied if the transferee were the recipient of the underlying return, or, if subparagraph (d)(ii) applies, a distribution under the financial instrument, or (iii) if the transferor were the recipient of the underlying return, or, if subparagraph (d)(ii) applies, a distribution under the financial instrument, (A) an amount in respect of the underlying return or distribution, as the case may be, would reasonably be expected to be foreign ordinary income for a foreign taxation year or Canadian ordinary income for a taxation year, as the case may be, of the transferor, (B) the underlying return or distribution, as the case may be, would arise under a hybrid mismatch arrangement, or (C) a foreign hybrid mismatch rule would reasonably be expected to apply in respect of the underlying return or distribution, as the case may be; and (h) one of the following entities is not resident in Canada: (i) the transferor, (ii) the transferee, (iii) a recipient of the payment, (iv) a payer of the payment, (v) the issuer of the financial instrument, (vi) a recipient of the underlying return, and (vii) if an entity described in any of subparagraphs (i) to (vi) is a partnership, a member of that entity. Substitute payment arrangement — amount (15) For the purposes of this section and section 12.7, if a payment arises under a substitute payment arrangement, (a) the amount of the substitute payment mismatch, in respect of the payment, is the lesser of (i) the amount of the deduction/non-inclusion mismatch arising from the payment, (A) if the condition in subparagraph (14)(f)(i) applies, determined based on the assumption in that subparagraph, or (B) if the condition in subparagraph (14)(f)(ii) applies, determined based on the assumption in that subparagraph, and (ii) the amount of the payment, or the portion of the payment, as the case may be, described in paragraph (14)(d); (b) the deduction component, if any, of the deduction/non-inclusion mismatch is the deduction component of the substitute payment arrangement in respect of the payment; (c) the foreign deduction component, if any, of the deduction/non-inclusion mismatch is the foreign deduction component of the substitute payment arrangement in respect of the payment; and (d) if the condition in subparagraph (14)(f)(ii) is met in respect of the payment, any amount that, in the absence of this section, subsection 18(4) or any foreign expense restriction rule, would be — or would reasonably be expected to be — deductible by the transferee in respect of the underlying return that meets the conditions in clauses (14)(f)(ii)(A) and (B) is deemed to be deductible by the transferee in respect of the payment for the purposes of applying subsections (3) and (4) and section 12.7. Substituted instruments (16) For the purposes of this section and section 12.7, any financial instrument that is substituted for a particular financial instrument is deemed to be the particular financial instrument. Specified entity — deeming rules (17) For the purposes of the definition specified entity in subsection (1), the following rules apply: (a) in determining the equity interests owned, directly or indirectly, by any entity (in this paragraph referred to as the “first entity”) in any other entity at any time, (i) the rights of the first entity, and any entities with which it does not deal at arm’s length, that are rights referred to in the portion of the definition specified shareholder in subsection 18(5) after paragraph (b) of that definition or in paragraph (a) or (b) of the definition specified beneficiary in that subsection, or that are similar rights in respect of partnerships or any other entity, are deemed to be immediate and absolute and to have been exercised at that time, and (ii) paragraph (c) of the definition specified beneficiary in subsection 18(5) is deemed to apply at that time and the references in that definition to “particular person” are to be read as references to “first entity”; and (b) notwithstanding paragraph (a), a particular entity is deemed not to be a specified entity in respect of another entity at any time if (i) the particular entity would, but for this paragraph, be a specified entity in respect of the other entity at that time, (ii) there was in effect at that time an agreement or arrangement under which, on the satisfaction of a condition or the occurrence of an event that it is reasonable to expect will be satisfied or will occur, the particular entity will cease to be a specified entity in respect of the other entity, and (iii) the purpose for which the particular entity became a specified entity was the safeguarding of rights or interests of the particular entity or an entity with which the particular entity is not dealing at arm’s length in respect of any indebtedness owing at any time to the particular entity or an entity with which the particular entity is not dealing at arm’s length. Tiered partnerships (18) For the purposes of this section and section 12.7, a person or partnership that is a member of a particular partnership that is a member of another partnership is deemed to be a member of the other partnership, and the person or partnership is deemed to have, directly, rights to the income or capital of the other partnership to the extent of the person or partnership’s direct and indirect rights to that income or capital. Multiple recipients (19) For the purposes of this section and section 12.7, if there would, in the absence of this subsection, be multiple recipients of a particular payment, each portion of the particular payment that arises to each recipient is deemed to be a separate payment. Anti-avoidance (20) The tax consequences (as defined in subsection 245(1)) to a person shall be determined in order to deny a tax benefit (as defined in subsection 245(1)) to the extent necessary to eliminate any deduction/non-inclusion mismatch, or other outcome that is substantially similar to a deduction/non-inclusion mismatch, arising from a payment if (a) it can reasonably be considered that one of the main purposes of a transaction or series of transactions that includes the payment is to avoid or limit the application of subsection (4), 12.7(3) or 113(5) in respect of the payment; and (b) any of the following conditions is met: (i) the payment is a dividend and an amount would be — or would reasonably be expected to be — deductible in respect of the payment in computing relevant foreign income or profits of an entity for a foreign taxation year, (ii) the mismatch or other outcome arises in whole or in part because of a difference in tax treatment of any transaction or series of transactions under the laws of more than one country that is attributable to the terms or conditions of the transaction or one or more transactions included in the series, or (iii) the mismatch or other outcome would arise in whole or in part because of a difference described in subparagraph (ii), if any other reason for the mismatch or other outcome were disregarded. Filing Requirement (21) Each taxpayer shall file with its return of income for a taxation year a prescribed form containing prescribed information if, in computing the taxpayer’s income for the taxation year, (a) an amount is not deductible in respect of a payment because of subsection (4); or (b) subsection 12.7(3) includes an amount in respect of a payment. (2) Paragraph (a) of the definition foreign expense restriction rule in subsection 18.4(1) of the Act, as enacted by subsection (1), is replaced by the following: (a) have an effect, or be intended to have an effect, that is substantially similar to subsection 18(4) or 18.2(2); or (3) Paragraph 18.4(3)(a) of the Act, as enacted by subsection (1), is replaced by the following: (a) in the absence of this section and subsections 18(4) and 18.2(2), an amount would be deductible, in respect of the payment, in computing a taxpayer’s income from a business or property for a taxation year; and (4) The description of A in paragraph 18.4(6)(a) of the Act, as enacted by subsection (1), is replaced by the following: A is the total of all amounts, each of which would, in the absence of this section and subsections 18(4) and 18.2(2), be deductible in respect of the payment, in computing the income of a taxpayer from a business or property under this Part for a taxation year (referred to in this paragraph as the “relevant year”), and (5) The portion of subparagraph 18.4(14)(f)(ii) of the Act before clause (A), as enacted by subsection (1), is replaced by the following: (ii) if the condition in subparagraph (i) is not met, would meet the condition in that subparagraph if any amount that, in the absence of this section, subsections 18(4) and 18.2(2) or any foreign expense restriction rule, would be — or would reasonably be expected to be — deductible by the transferee in respect of the underlying return were instead considered to be deductible in respect of the payment, to the extent that the amount (6) Paragraph 18.4(15)(d) of the Act, as enacted by subsection (1), is replaced by the following: (d) if the condition in subparagraph (14)(f)(ii) is met in respect of the payment, any amount that, in the absence of this section, subsections 18(4) and 18.2(2) or any foreign expense restriction rule, would be — or would reasonably be expected to be — deductible by the transferee in respect of the underlying return that meets the conditions in clauses 14(f)(ii)(A) and (B) is deemed to be deductible by the transferee in respect of the payment for the purposes of applying subsections (3) and (4) and section 12.7. (7) Subsection (1) applies in respect of payments arising on or after July 1, 2022, except that subsection 18.4(21) of the Act, as enacted by subsection (1), does not apply in respect of a payment that arises before July 1, 2023. (8) Subsections (2) to (6) apply in respect of taxation years of a taxpayer that begin on or after October 1, 2023. However, subsections (2) to (6) also apply in respect of a taxation year of a taxpayer that begins before, and ends after, October 1, 2023 if (a) any of the taxpayer’s three immediately preceding taxation years was, because of a transaction or event or a series of transactions or events, shorter than it would have been in the absence of that transaction, event or series; and (b) it can reasonably be considered that one of the purposes of the transaction, event or series was to defer the application of paragraph 12(1)(l.2) of the Act, as enacted by subsection 2 (1), or the application of section 18.2 or 18.21 of the Act, as enacted by subsection 7 (1), to the taxpayer. 9 (1) Subsection 20(1) of the Act is amended by striking out “and” at the end of paragraph (ww), by adding “and” at the end of paragraph (xx) and by adding the following after paragraph (xx): Adjustment for hybrid mismatch (yy) if subsection 18.4(4) has applied to deny a taxpayer a deduction, for the year or a preceding taxation year, for all or a portion of an amount in respect of a payment arising under a hybrid mismatch arrangement, and the taxpayer demonstrates that an amount is foreign ordinary income of an entity in respect of the payment (other than any amount of foreign ordinary income already taken into account in determining the amount of the deduction that was previously denied or a deduction under this paragraph) for a foreign taxation year that ends on or before the day that is 12 months after the end of the year, (i) the lesser of (A) the amount by which the deduction that was denied exceeds the total of all amounts already deducted under this paragraph in respect of the payment for the year or any previous year, and (B) the amount of the foreign ordinary income, and (ii) the amount that is deductible under this paragraph is deemed to be deductible in respect of the payment. (2) Subsection (1) applies in respect of payments arising on or after July 1, 2022. 10 (1) The portion of subparagraph 40(1)(a)(iii) of the Act before clause (A) is replaced by the following: (iii) subject to subsections (1.1) to (1.3), such amount as the taxpayer may claim (2) Section 40 of the Act is amended by adding the following after subsection (1.1): Reserve — intergenerational business transfers (1.2) In computing the amount that a taxpayer may claim under subparagraph (1)(a)(iii) on a disposition of shares of the capital stock of a corporation resident in Canada to another corporation, that subparagraph is to be read as if the references to “1/5” and “4” were references to “1/10” and “9” respectively, if the conditions set out in subsection 84.1(2.31) or (2.32) are satisfied in respect of the disposition. Reserve — dispositions to employee ownership trusts (1.3) In computing the amount that a taxpayer may claim under subparagraph (1)(a)(iii) in computing the taxpayer’s gain from the disposition of a share of the capital stock of a qualifying business, that subparagraph is to be read as if the references in that subparagraph to “1/5” and “4” were references to “1/10” and “9” respectively, if the shares of the qualifying business were disposed of by the taxpayer to an employee ownership trust, or to a Canadian-controlled private corporation that is controlled and wholly-owned by an employee ownership trust, pursuant to a qualifying business transfer. (3) Subsections (1) and (2) apply in respect of transactions that occur on or after January 1, 2024. 11 (1) Subparagraph 53(1)(e)(xiii) of the Act is replaced by the following: (xiii) any amount required by subsection 127(30) or section 211.92 to be added to the taxpayer’s tax otherwise payable under this Part for a taxation year that ended before that time in respect of the interest in the partnership; (2) Subparagraph 53(1)(e)(xiii) of the Act, as amended by subsection (1), is replaced by the following: (xiii) any amount required by subsection 127(30) or 127.45(17) or section 211.92 to be added to the taxpayer’s tax otherwise payable under this Part for a taxation year that ended before that time in respect of the interest in the partnership; (3) Paragraph 53(2)(c) of the Act is amended by adding the following after subparagraph (vi): (vi.1) an amount equal to that portion of all amounts of a CCUS tax credit deducted under subsection 127.44(3) in computing the tax otherwise payable by the taxpayer under this Part for the taxpayer’s taxation years ending before that time that may reasonably be attributed to amounts added in computing the tax credit of the taxpayer because of subsection 127.44(11), (4) Paragraph 53(2)(c) of the Act, as amended by subsection (3), is amended by adding the following after subparagraph (vi.1): (vi.2) an amount equal to that portion of all amounts of a clean technology investment tax credit deducted under subsection 127.45(6) in computing the tax otherwise payable by the taxpayer under this Part for the taxpayer’s taxation years ending before that time that may reasonably be attributed to amounts added in computing the tax credit of the taxpayer because of subsection 127.45(8), (5) Subsections (1) and (3) are deemed to have come into force on January 1, 2022. (6) Subsections (2) and (4) are deemed to have come into force on March 28, 2023. 12 (1) Paragraphs (f.1) and (g) of the definition principal-business corporation in subsection 66(15) of the Act are replaced by the following: (f.1) the production or marketing of calcium chloride, gypsum, kaolin, lithium, sodium chloride or potash, (g) the manufacturing of products, where the manufacturing involves the processing of calcium chloride, gypsum, kaolin, lithium, sodium chloride or potash, (2) Section 66 of the Act is amended by adding the following after subsection (20): Lithium brine well (21) For the purposes of paragraph (f) of the definition Canadian exploration expense in subsection 66.1(6) and paragraphs (c.2) and (d) of the definition Canadian development expense in subsection 66.2(5), (a) a mine includes a well for the extraction of material from a lithium brine deposit; (b) all wells of a taxpayer for the extraction of material from one or more lithium brine deposits, the material produced from which is sent to the same plant for processing, are deemed to be one mine of the taxpayer; and (c) all wells of a taxpayer for the extraction of material from one or more lithium brine deposits that the Minister, in consultation with the Minister of Natural Resources, determines constitute one project, are deemed to be one mine of the taxpayer. (3) Subsections (1) and (2) are deemed to have come into force on March 28, 2023. 13 (1) Paragraphs (c.2) and (d) of the definition Canadian development expense in subsection 66.2(5) of the Act are replaced by the following: (c.2) any expense, or portion of any expense, that is not a Canadian exploration expense, incurred by the taxpayer after March 20, 2013 for the purpose of bringing a new mine in a mineral resource in Canada, other than a bituminous sands deposit or an oil shale deposit, into production in reasonable commercial quantities and incurred before the new mine comes into production in such quantities, including an expense for clearing, removing overburden, stripping, sinking a mine shaft, constructing an adit or other underground entry or drilling a well for the extraction of lithium from brines, (d) any expense (other than an amount included in the capital cost of depreciable property) incurred by the taxpayer after 1987 (i) in sinking or excavating a mine shaft, main haulage way or similar underground work designed for continuing use, for a mine in a mineral resource in Canada built or excavated after the mine came into production, (ii) in extending any such shaft, haulage way or work referred to in subparagraph (i), or (iii) in drilling or completing a well for the extraction of lithium from brines in Canada after the mine came into production, (2) Subsection (1) applies in respect of expenses incurred on or after March 28, 2023. 14 (1) Subclause 66.8(1)(a)(ii)(B)(I) of the Act is replaced by the following: (I) the total of all amounts required by subsections 127(8) and 127.44(11) in respect of the partnership to be added in computing the investment tax credit or the CCUS tax credit (as defined in subsection 127.44(1)) of the taxpayer in respect of the fiscal period, and (2) Subclause 66.8(1)(a)(ii)(B)(I) of the Act, as amended by subsection (1), is replaced by the following: (I) the total of all amounts required by subsections 127(8), 127.44(11) and 127.45(8) in respect of the partnership to be added in computing the investment tax credit, the CCUS tax credit (as defined in subsection 127.44(1)) or the clean technology investment tax credit (as defined in subsection 127.45(1)) of the taxpayer in respect of the fiscal period, and (3) Subsection (1) is deemed to have come into force on January 1, 2022. (4) Subsection (2) is deemed to have come into force on March 28, 2023. 15 (1) The portion of the definition commercial debt obligation in subsection 80(1) of the Act after paragraph (b) is replaced by the following: an amount in respect of the interest was or would have been deductible in computing the debtor’s income, taxable income or taxable income earned in Canada, as the case may be, if this Act were read without reference to paragraph 18(1)(g), subsections 18(2), (3.1) and (4) and 18.2(2) and section 21; ( créance commerciale ) (2) Subsection (1) applies in respect of taxation years of a taxpayer that begin on or after October 1, 2023. 16 (1) Subsection 80.4(3) of the Act is amended by striking out “or” at the end of paragraph (a), by adding “or” at the end of paragraph (b) and by adding the following after paragraph (b): (c) that satisfies the conditions set out in subsection 15(2.51) and is repaid within 15 years after the qualifying business transfer referred to in that subsection. (2) Subsection (1) comes into force or is deemed to have come into force on January 1, 2024. 17 (1) Paragraph 84.1(2)(e) of the Act is replaced by the following: (e) notwithstanding any other paragraph in this subsection, if this paragraph applies because of subsection (2.31) or (2.32) to a disposition of subject shares by a taxpayer to a purchaser corporation, the taxpayer and the purchaser corporation are deemed to deal with each other at arm’s length at the time of the disposition of the subject shares. (2) Subsection 84.1(2.3) of the Act is replaced by the following: Rules for subsections (2.31) and (2.32) (2.3) For the purposes of this subsection and subsections (2.31) and (2.32), (a) a child of a taxpayer has the same meaning as in subsection 70(10) and also includes (i) a niece or nephew of the taxpayer, (ii) a niece or nephew of the taxpayer’s spouse or common-law partner, (iii) a spouse or common-law partner of a niece or nephew referred to in subparagraph (i) or (ii), and (iv) a child of a niece or nephew referred to in subparagraph (i) or (ii); (b) in applying subparagraphs (2.31)(c)(iii) and (2.32)(c)(iii), if the relevant group entity is a partnership, (i) the partnership is deemed to be a corporation (in this paragraph referred to as the “deemed corporation”), (ii) the deemed corporation is deemed to have a capital stock of a single class of shares, with a total of 100 issued and outstanding shares, (iii) each member (in this paragraph referred to as a “deemed shareholder”) of the partnership is deemed to be a shareholder of the deemed corporation, (iv) each deemed shareholder of the deemed corporation is deemed to hold a number of shares in the capital stock of the deemed corporation determined by the formula A × 100 where A is equal to (A) the deemed shareholder’s specified proportion for the last fiscal period of the deemed corporation, or (B) if the deemed shareholder does not have a specified proportion described in clause (A), the proportion that is the fair market value of the deemed shareholder’s interest in the deemed corporation at that time relative to the fair market value of all interests in the deemed corporation at that time, and (v) the deemed corporation’s fiscal period is deemed to be its taxation year; (c) own, directly or indirectly , in respect of a property, means (i) direct ownership of the property, and (ii) an ownership interest or, for civil law, a right in the shares of a corporation, an interest in a partnership or an interest in a trust that has a direct or indirect interest or, for civil law, a right, in the property, except that for the purposes of paragraphs (2.31)(d) and (e) and (2.32)(d) and (e), this subparagraph does not apply as a look-through rule for an interest, or for civil law, a right in non-voting preferred shares or debt of (A) the purchaser corporation (within the meaning of subsections (2.31) and (2.32)), (B) the subject corporation (within the meaning of subsections (2.31) and (2.32)), or (C) any relevant group entity (within the meaning of subsections (2.31) and (2.32)); (d) if a person or partnership’s share of the accumulating income or capital of a trust in respect of which the person or partnership has an interest as a beneficiary depends on the exercise by a person (in this paragraph referred to as a “trustee”) of, or the failure by any trustee to exercise, a discretionary power, that trustee is deemed to have fully exercised the power, or to have failed to exercise the power, as the case may be; (e) if one or more children referred to in (i) subparagraph (2.31)(f)(i) have disposed of, or caused the disposition of, all of the shares in the capital stock of the purchaser corporation, the subject corporation or all relevant group entities to an arm’s length person or group of persons, the conditions set out in paragraphs (2.31)(f) and (g) are deemed to be met as of the time of the disposition, provided that all equity interests in all relevant businesses owned, directly or indirectly, by each child referred to in subparagraph (2.31)(f)(i) are included in the disposition, or (ii) subparagraph (2.32)(g)(i) have disposed of, or caused the disposition of, all of the shares in the capital stock of the purchaser corporation, the subject corporation or all relevant group entities to an arm’s length person or group of persons, the conditions set out in paragraphs (2.32)(g) and (h) are deemed to be met as of the time of the disposition, provided that all equity interests in all relevant businesses owned, directly or indirectly, by each child referred to in subparagraph (2.32)(g)(i) are included in the disposition; and (f) if one or more children referred to in (i) subparagraph (2.31)(f)(i) have disposed of, or caused the disposition of, any of the shares in the capital stock of the purchaser corporation, the subject corporation or a relevant group entity to another child or group of children of the taxpayer (in this paragraph referred to as the “new child” or the “new children”), the conditions set out in paragraphs (2.31)(f) and (g) are deemed (A) to be met as of the time of the disposition, and (B) to continue to apply to the new child (or the new children) and any other member of the group of children that controls the subject corporation and the purchaser corporation at the time of the disposition, or (ii) subparagraph (2.32)(g)(i) have disposed of, or caused the disposition of, any of the shares in the capital stock of the purchaser corporation, the subject corporation, or a relevant group entity to another child or group of children of the taxpayer (in this paragraph referred to as the “new child” or the “new children”), the conditions set out in paragraphs (2.32)(g) and (h) are deemed (A) to be met as of the time of the disposition, and (B) to continue to apply to the new child (or the new children) and any other member of the group of children that controls the subject corporation and the purchaser corporation at the time of the disposition; (g) if a child, or each of the children, referred to in (i) subparagraph (2.31)(f)(ii) has died or has, after the disposition of the subject shares, suffered one or more severe and prolonged impairments in physical or mental functions, the conditions set out in paragraphs (2.31)(f) and (g) are deemed to be met as of the time of the death or mental or physical impairment, or (ii) subparagraph (2.32)(g)(ii) has died or has, after the disposition of the subject shares, suffered one or more severe and prolonged impairments in physical or mental functions, the conditions set out in paragraphs (2.32)(g) and (h) are deemed to be met as of the time of the death or mental or physical impairment; (h) if a business of a subject corporation or a relevant group entity has ceased to be carried on due to the disposition of all of the assets that were used to carry on the business in order to satisfy debts owed to creditors of the corporation or of the entity, the conditions set out in respect of the business in subparagraphs (2.31)(f)(ii) and (iii) and (2.31)(g)(i) or (2.32)(g)(ii) and (iii) and (2.32)(h)(i), as applicable, are deemed to be met as of the time of the disposition; and (i) in applying paragraphs (2.31)(g) and (2.32)(h), management refers to the direction or supervision of business activities but does not include the provision of advice. Immediate intergenerational business transfer (2.31) Paragraph (2)(e) applies at the time of a disposition of subject shares (in this subsection referred to as the “disposition time”) by a taxpayer to a purchaser corporation if the following conditions are met: (a) the taxpayer has not previously, at any time after 2023, sought an exception to the application of subsection (1) under paragraph (2)(e) in respect of a disposition of shares that, at that time, derived their value from an active business that is relevant to the determination of whether the subject shares satisfy the condition set out in subparagraph (b)(iii); (b) at the disposition time, (i) the taxpayer is an individual (other than a trust), (ii) the purchaser corporation is controlled by one or more children (within the meaning of paragraph (2.3)(a), in this subsection referred to as the “child” or “children”) of the taxpayer, each of whom is 18 years of age or older, and (iii) the subject shares are qualified small business corporation shares or shares of the capital stock of a family farm or fishing corporation (as those terms are defined in subsection 110.6(1)); (c) at all times after the disposition time, the taxpayer does not — either alone or together with a spouse or common-law partner of the taxpayer — control, directly or indirectly in any manner whatever, (i) the subject corporation, (ii) the purchaser corporation, or (iii) any other person or partnership (in this subsection referred to as a “relevant group entity”) that carries on, at the disposition time, an active business (referred to in this subsection as a “relevant business”) that is relevant to the determination of whether the subject shares satisfy the condition set out in subparagraph (b)(iii); (d) at all times after the disposition time, the taxpayer does not – either alone or together with a spouse or common law partner of the taxpayer – own, directly or indirectly, (i) 50% or more of any class of shares, other than shares of a specified class as defined in subsection 256(1.1) (in this subsection referred to as “non-voting preferred shares”), of the capital stock of the subject corporation or of the purchaser corporation, or (ii) 50% or more of any class of equity interest (other than non-voting preferred shares) in any relevant group entity; (e) within 36 months after the disposition time and at all times thereafter, the taxpayer and a spouse or common-law partner of the taxpayer do not own, directly or indirectly, (i) any shares, other than non-voting preferred shares of the capital stock of the subject corporation or of the purchaser corporation, or (ii) any equity interest (other than non-voting preferred shares) in any relevant group entity; (f) subject to subsection (2.3), from the disposition time until 36 months after that time, (i) the child or group of children, as the case may be, controls the purchaser corporation, (ii) the child, or at least one member of the group of children, as the case may be, is actively engaged on a regular, continuous and substantial basis (within the meaning of paragraph 120.4(1.1)(a)) in a relevant business of the subject corporation or a relevant group entity, and (iii) each relevant business of the subject corporation and any relevant group entity is carried on as an active business; (g) subject to subsection (2.3), within 36 months after the disposition time or such greater period as is reasonable in the circumstances, the taxpayer and a spouse or common-law partner of the taxpayer take reasonable steps to (i) transfer management of each relevant business of the subject corporation and any relevant group entity to the child or at least one member of the group of children referred to in subparagraph (f)(ii), and (ii) permanently cease to manage each relevant business of the subject corporation and any relevant group entity; and (h) the taxpayer and the child, or the taxpayer and each member of the group of children, as the case may be, (i) jointly elect, in prescribed form, for paragraph (2)(e) to apply in respect of the disposition of the subject shares, and (ii) file the election with the Minister on or before the taxpayer’s filing-due date for the taxation year that includes the disposition time. Gradual intergenerational business transfer (2.32) Paragraph (2)(e) applies at the time of a disposition of subject shares (referred to in this subsection as the “disposition time”) by a taxpayer to a purchaser corporation if the following conditions are met: (a) the taxpayer has not previously, at any time after 2023, sought an exception to the application of subsection (1) pursuant to paragraph (2)(e) in respect of a disposition of shares that, at that time, derived their value from an active business that is relevant to the determination of whether the subject shares satisfy the condition set out in subparagraph (b)(iii); (b) at the disposition time, (i) the taxpayer is an individual (other than a trust), (ii) the purchaser corporation is controlled by one or more children (within the meaning of paragraph (2.3)(a), and referred to in this subsection as the “child” or “children”) of the taxpayer, each of whom is 18 years of age or older, and (iii) the subject shares are qualified small business corporation shares or shares of the capital stock of a family farm or fishing corporation (as those terms are defined in subsection 110.6(1)); (c) at all times after the disposition time, the taxpayer does not — either alone or together with a spouse or common-law partner of the taxpayer — control (i) the subject corporation, (ii) the purchaser corporation, or (iii) any person or partnership (referred to in this subsection as a “relevant group entity”) that carries on, at the disposition time, an active business (referred to in this subsection as a “relevant business”) that is relevant to the determination of whether the subject shares satisfy the condition in subparagraph (b)(iii); (d) at all times after the disposition time, the taxpayer does not — either alone or together with a spouse or common-law partner of the taxpayer — own, directly or indirectly, (i) 50% or more of any class of shares, other than shares of a specified class as defined in subsection 256(1.1) (in this subsection referred to as “non-voting preferred shares”), of the capital stock of the subject corporation or of the purchaser corporation, or (ii) 50% or more of any class of equity interest (other than non-voting preferred shares) in any relevant group entity; (e) within 36 months after the disposition time and at all times thereafter, the taxpayer and a spouse or common-law partner of the taxpayer do not own, directly or indirectly, (i) any shares, other than non-voting preferred shares of the capital stock of the subject corporation or of the purchaser corporation, or (ii) any equity interest (other than non-voting preferred shares) in any relevant group entity; (f) within 10 years after the disposition time (referred to in this subsection as the “final sale time”) and at all times after the final sale time, the taxpayer and a spouse or common-law partner of the taxpayer do not own, directly or indirectly, (i) in the case of a disposition of subject shares that are, at the disposition time, shares of the capital stock of a family farm or fishing corporation (as those terms are defined in subsection 110.6(1)), interests (including any debt or equity interest) in any of the subject corporation, the purchaser corporation, and any relevant group entity with a fair market value that exceeds 50% of the fair market value of all the interests that were owned, directly or indirectly, by the taxpayer and a spouse or common-law partner of the taxpayer immediately before the disposition time, or (ii) in the case of a disposition of subject shares that are, at the disposition time, qualified small business corporation shares as those terms are defined in subsection 110.6(1) (other than subject shares described in subparagraph (i)), interests (including any debt or equity interest) in any of the subject corporation, the purchaser corporation and any relevant group entity with a fair market value that exceeds 30% of the fair market value of all the interests that were owned, directly or indirectly, by the taxpayer and a spouse or common-law partner of the taxpayer immediately before the disposition time; (g) subject to subsection (2.3), from the disposition time until the later of 60 months after the disposition time and the final sale time, (i) the child or group of children, as the case may be, controls the purchaser corporation, (ii) the child, or at least one member of the group of children, as the case may be, is actively engaged on a regular, continuous and substantial basis (within the meaning of paragraph 120.4(1.1)(a)) in a relevant business of the subject corporation or a relevant group entity, and (iii) any relevant business of the subject corporation and any relevant group entity is carried on as an active business; (h) subject to subsection (2.3), within 60 months of the disposition time or such greater period as is reasonable in the circumstances, the taxpayer and a spouse or common-law partner of the taxpayer take reasonable steps to (i) transfer management of each relevant business of the subject corporation and any relevant group entity to the child or at least one member of the group of children referred to in subparagraph (g)(ii), and (ii) permanently cease to manage each relevant business of the subject corporation and any relevant group entity; and (i) the taxpayer and the child, or the taxpayer and each member of the group of children, as the case may be, (i) jointly elect, in prescribed form, for paragraph (2)(e) to apply in respect of the disposition of the subject shares, and (ii) file the election with the Minister on or before the taxpayer’s filing-due date for the taxation year that includes the disposition time. (3) Subsections (1) and (2) apply to dispositions of shares that occur on or after January 1, 2024. 18 (1) Paragraph 87(2)(j.6) of the Act is replaced by the following: Continuing corporation (j.6) for the purposes of paragraphs 12(1)(t) and (x), subsections 12(2.2) and 13(7.1), (7.4) and (24), paragraphs 13(27)(b) and (28)(c), subsections 13(29) and 18(9.1), paragraphs 20(1)(e), (e.1), (v) and (hh), sections 20.1 and 32, paragraph 37(1)(c), subsection 39(13), subparagraphs 53(2)(c)(vi) and (h)(ii), paragraph 53(2)(s), subsections 53(2.1), 66(11.4), 66.7(11), 84.1(2.31) and (2.32) and 127(10.2), section 139.1, subsection 152(4.3), the determination of D in the definition undepreciated capital cost in subsection 13(21) and the determination of L in the definition cumulative Canadian exploration expense in subsection 66.1(6), the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation; (2) Subsection 87(2) of the Act is amended by adding the following after paragraph (qq): Certain investment tax credits (qq.1) for the purposes of section 127.44 and Part XII.7, the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation; (3) Paragraph 87(2)(qq.1) of the Act, as enacted by subsection (2), is replaced by the following: Certain investment tax credits (qq.1) for the purposes of sections 127.44 and 127.45 and Part XII.7, the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation; (4) Paragraph 87(2.1)(a) of the Act is replaced by the following: (a) determining the new corporation’s non-capital loss, net capital loss, restricted farm loss, farm loss, limited partnership loss or restricted interest and financing expense, as the case may be, for any taxation year, (5) Subsection 87(2.1) of the Act is amended by adding the following after paragraph (a): (a.1) determining, for any taxation year, the new corporation’s absorbed capacity, excess capacity and transferred capacity in determining its cumulative unused excess capacity for a taxation year, and (6) Paragraph 87(2.1)(b) of the Act is replaced by the following: (b) determining the extent to which subsections 111(3) to (5.4) and paragraph 149(10)(c) apply to restrict the deductibility by the new corporation of any non-capital loss, net capital loss, restricted farm loss, farm loss, limited partnership loss or restricted interest and financing expense, as the case may be, (7) Paragraph 87(2.1)(d) of the Act is replaced by the following: (d) the income of the new corporation (other than as a result of an amount of interest and financing expenses being deductible by the new corporation because of paragraph (a.1)) or any of its predecessors, or (8) Subsection 87 of the Act is amended by adding the following after subsection (2.11): Adjusted taxable income — non-capital losses (2.12) Where there has been an amalgamation of two or more corporations, for the purpose of determining the amount for paragraph (h) in the description of B in the definition adjusted taxable income in subsection 18.2(1) in respect of an amount deducted by the new corporation under paragraph 111(1)(a) in computing its taxable income for a taxation year, the new corporation is deemed to be the same corporation as, and a continuation of, a particular predecessor corporation if it may reasonably be considered that (a) the amount deducted is in respect of all or any portion of a non-capital loss for another taxation year; and (b) the non-capital loss or the portion of the non-capital loss, as the case may be, is a non-capital loss of the particular predecessor corporation for the other taxation year. (9) Subsection (1) comes into force or is deemed to have come into force on January 1, 2024. (10) Subsection (2) is deemed to have come into force on January 1, 2022. (11) Subsection (3) is deemed to have come into force on March 28, 2022. (12) Subsections (4) and (6) apply in respect of amalgamations that occur on or after October 1, 2023. (13) Subsections (5), (7) and (8) apply in respect of amalgamations that occur in any taxation year. 19 (1) Subsection 88(1) of the Act is amended by adding the following after paragraph (e.3): (e.31) for the purposes of section 127.44 and Part XII.7 at the end of any particular taxation year ending after the subsidiary was wound up, the parent is deemed to be the same corporation as, and a continuation of, the subsidiary; (2) Paragraph 88(1)(e.31) of the Act, as enacted by subsection (1), is replaced by the following: (e.31) for the purposes of sections 127.44 and 127.45 and Part XII.7 at the end of any particular taxation year ending after the subsidiary was wound up, the parent is deemed to be the same corporation as, and a continuation of, the subsidiary; (3) The portion of subsection 88(1.1) of the Act before paragraph (a) is replaced by the following: Non-capital losses, etc., of subsidiary (1.1) Where a Canadian corporation (in this subsection and subsection (1.11) referred to as the “subsidiary”) has been wound up and not less than 90% of the issued shares of each class of the capital stock of the subsidiary were, immediately before the winding-up, owned by another Canadian corporation (in this subsection and subsection (1.11) referred to as the “parent”) and all the shares of the subsidiary that were not owned by the parent immediately before the winding-up were owned at that time by a person or persons with whom the parent was dealing at arm’s length, for the purpose of computing the taxable income of the parent under this Part and the tax payable under Part IV by the parent for any taxation year commencing after the commencement of the winding-up, such portion of any non-capital loss, restricted farm loss, farm loss or limited partnership loss of the subsidiary as may reasonably be regarded as its loss from carrying on a particular business (in this subsection referred to as the “subsidiary’s loss business”) and any other portion of any non-capital loss or limited partnership loss of the subsidiary as may reasonably be regarded as being derived from any other source or being in respect of a claim made under section 110.5 for any particular taxation year of the subsidiary (in this subsection referred to as the “subsidiary’s loss year”), and the portion of the restricted interest and financing expense of the subsidiary for any particular taxation year of the subsidiary (in this subsection referred to as the “subsidiary’s expense year”) that may reasonably be regarded as an expense or loss incurred by the subsidiary in the course of carrying on a particular business (in this subsection referred to as the “subsidiary’s expense business”) and any other portion of the restricted interest and financing expense of the subsidiary that may reasonably be regarded as being incurred in respect of any other source, to the extent that it (4) The portion of subsection 88(1.1) of the Act after paragraph (b) and before paragraph (c) is replaced by the following: shall, for the purposes of this subsection, paragraphs 111(1)(a), (a.1), (c), (d) and (e), subsection 111(3) and Part IV, (5) Subsection 88(1.1) of the Act is amended by striking out “and” at the end of paragraph (d) and by adding the following after paragraph (d.1): (d.2) in the case of the portion of any restricted interest and financing expense of the subsidiary that may reasonably be regarded as being incurred in carrying on the subsidiary’s expense business, be deemed, for the taxation year of the parent in which the subsidiary’s expense year ended, to be a restricted interest and financing expense of the parent from carrying on the subsidiary’s expense business that was not deductible by the parent in computing its taxable income for any taxation year that commenced before the commencement of the winding-up, and (d.3) in the case of any other portion of any restricted interest and financing expense of the subsidiary that may reasonably be regarded as being incurred in respect of any other source, be deemed, for the taxation year of the parent in which the subsidiary’s expense year ended, to be a restricted interest and financing expense of the parent that was incurred in respect of that other source and that was not deductible by the parent in computing its taxable income for any taxation year that commenced before the commencement of the winding-up, (6) The portion of paragraph 88(1.1)(e) of the Act before subparagraph (i) is replaced by the following: (e) if control of the parent has been acquired by a person or group of persons at any time after the commencement of the winding-up, or control of the subsidiary has been acquired by a person or group of persons at any time whatever, no amount in respect of the subsidiary’s non-capital loss, farm loss or restricted interest and financing expense for a taxation year ending before that time is deductible in computing the taxable income of the parent for a particular taxation year ending after that time, except that such portion of the subsidiary’s non-capital loss or farm loss as may reasonably be regarded as its loss from carrying on a business, or restricted interest and financing expense as may reasonably be regarded as being the subsidiary’s expense or loss incurred in the course of carrying on a business and, where a business was carried on by the subsidiary in that year, such portion of the non-capital loss as may reasonably be regarded as being in respect of an amount deductible under paragraph 110(1)(k) in computing its taxable income for the year, is deductible only (7) The portion of paragraph 88(1.1)(e) of the Act after subparagraph (ii) is replaced by the following: and for the purpose of this paragraph, where this subsection applied to the winding-up of another corporation in respect of which the subsidiary was the parent and this paragraph applied in respect of losses and restricted interest and financing expenses of that other corporation, the subsidiary shall be deemed to be the same corporation as, and a continuation of, that other corporation with respect to those losses and restricted interest and financing expenses, (8) Subsection 88(1.1) of the Act is amended by adding “and” at the end of paragraph (f) and by adding the following after that paragraph: (g) any portion of a restricted interest and financing expense of the subsidiary that would otherwise be deemed by paragraph (d.2) or (d.3) to be a restricted interest and financing expense of the parent for a particular taxation year beginning after the commencement of the winding-up shall be deemed, for the purpose of computing the parent’s taxable income for taxation years beginning after the commencement of the winding-up, to be a restricted interest and financing expense of the parent for its immediately preceding taxation year and not for the particular year, where the parent so elects in its return of income under this Part for the particular year. (9) Section 88 of the Act is amended by adding the following after subsection (1.1): Cumulative unused excess capacity of subsidiary (1.11) If a subsidiary has been wound up in the circumstances described in subsection (1.1), for the purpose of computing the cumulative unused excess capacity of the parent for any taxation year of the parent that commenced after the commencement of the winding up, the absorbed capacity, the excess capacity and any transferred capacity, of the subsidiary for any particular taxation year are deemed to be an amount of absorbed capacity, an amount of excess capacity and an amount of transferred capacity, respectively, of the parent for the taxation year of the parent in which the subsidiary’s particular taxation year ended. Adjusted taxable income — non-capital losses of subsidiary (1.12) If paragraph (1.1)(c), (d) or (d.1) deems a particular portion of a non-capital loss for a taxation year (referred to in this paragraph as the “subsidiary loss year”) of a subsidiary that has been wound up to be the parent’s non-capital loss for a taxation year (referred to in this paragraph as the “parent loss year”) and the parent deducts an amount in respect of the parent’s non-capital loss under paragraph 111(1)(a) in computing taxable income for a particular taxation year, for the purpose of determining the amount included under paragraph (h) of the description of B in the definition adjusted taxable income in subsection 18.2(1) in respect of the parent’s non-capital loss in computing the parent’s adjusted taxable income for the particular taxation year, any amount of the subsidiary for the subsidiary loss year that is referred to in the description of W or X in the definition adjusted taxable income in subsection 18.2(1) and that relates to the source from which the particular portion is derived (and any amount deemed by this subsection to be an amount of the subsidiary for the subsidiary loss year relating to the source) is deemed to be an amount of the parent relating to the source for the parent loss year. (10) Paragraph 88(2)(c) of the Act is replaced by the following: (c) for the purpose of computing the income of the corporation for its taxation year that includes the particular time, paragraph 12(1)(t) shall be read as follows: “12(1)(t) the amount deducted under subsection 127(5) or (6) or 127.44(3) in computing the taxpayer’s tax payable for the year or a preceding taxation year to the extent that it was not included under this paragraph in computing the taxpayer’s income for a preceding taxation year or is not included in an amount determined under paragraph 13(7.1)(e) or 37(1)(e) or subparagraph 53(2)(c)(vi), (c)(vi.1) or (h)(ii) or the amount determined for I in the definition undepreciated capital cost in subsection 13(21) or L in the definition cumulative Canadian exploration expense in subsection 66.1(6);”. (11) Paragraph 88(2)(c) of the Act, as amended by subsection (10), is replaced by the following: (c) for the purpose of computing the income of the corporation for its taxation year that includes the particular time, paragraph 12(1)(t) shall be read as follows: “12(1)(t) the amount deducted under subsection 127(5) or (6), 127.44(3) or 127.45(6) in computing the taxpayer’s tax payable for the year or a preceding taxation year to the extent that it was not included under this paragraph in computing the taxpayer’s income for a preceding taxation year or is not included in an amount determined under paragraph 13(7.1)(e) or 37(1)(e) or subparagraph 53(2)(c)(vi) to (c)(vi.2) or (h)(ii) or the amount determined for I in the definition undepreciated capital cost in subsection 13(21) or L in the definition cumulative Canadian exploration expense in subsection 66.1(6);”. (12) Subsections (1) and (10) are deemed to have come into force on January 1, 2022. (13) Subsections (2) and (11) are deemed to have come into force on March 28, 2023. (14) Subsections (3) to (8) apply in respect of windings-up that begin on or after October 1, 2023. (15) Subsection (9) applies in respect of windings-up that begin in any taxation year. 20 (1) Paragraph (a) of the description of D in the definition low rate income pool in subsection 89(1) of the Act is replaced by the following: (a) if the non-CCPC was a substantive CCPC at any time in its preceding taxation year or would, but for paragraph (d) of the definition Canadian-controlled private corporation in subsection 125(7), be a Canadian-controlled private corporation in its preceding taxation year, 80% of its aggregate investment income for its preceding taxation year, and (2) The description of G in the definition low rate income pool in subsection 89(1) of the Act is replaced by the following: G is the total of all amounts each of which is a taxable dividend (other than an eligible dividend, a capital gains dividend within the meaning assigned by subsection 130.1(4) or 131(1) or a taxable dividend deductible by the non-CCPC under subsection 130.1(1) in computing its income for the particular taxation year or for its preceding taxation year) that became payable by the non-CCPC (a) in the particular taxation year but before the particular time, or (b) in the preceding taxation year, but only to the extent of the lesser of (i) the amount included under the description of D in the particular taxation year, and (ii) the portion of the taxable dividend that did not reduce the non-CCPC’s low rate income pool in the preceding taxation year, and (3) Subsections (1) and (2) apply to taxation years that begin on or after April 7, 2022. 21 (1) The portion of subsection 91(1.2) of the Act before paragraph (a) is replaced by the following: Deemed year-end (1.2) If this subsection applies at a particular time in respect of a foreign affiliate of a particular taxpayer resident in Canada, then for the purposes of this section, sections 18.2 and 92 and clause 95(2)(f.11)(ii)(D), (2) Subsection (1) applies in respect of a taxation year of a foreign affiliate of a taxpayer that ends in a taxation year of the taxpayer beginning on or after October 1, 2023. However, subsection (1) also applies in respect of a taxation year of a foreign affiliate of a taxpayer that ends in a taxation year of the taxpayer that begins before, and ends after, October 1, 2023 if (a) any of the taxpayer’s three immediately preceding taxation years was, because of a transaction or event or a series of transactions or events, shorter than it would have been in the absence of that transaction, event or series; and (b) it can reasonably be considered that one of the purposes of the transaction, event or series was to defer the application of paragraph 12(1)(l.2) of the Act, as enacted by subsection 2 (1), or the application of section 18.2 or 18.21 of the Act, as enacted by subsection 7 (1), to the taxpayer. 22 (1) Paragraph 92(1)(a) of the Act is replaced by the following: (a) there shall be added in respect of that share any amount included in respect of that share under subsection 91(1) or (3) in computing the taxpayer’s income for the year or any preceding taxation year (or that would have been required to have been so included in computing the taxpayer’s income but for subsection 56(4.1) and sections 74.1 to 75 of this Act and section 74 of the Income Tax Act , chapter 148 of the Revised Statutes of Canada, 1952), except that, if the amount so included is greater than it otherwise would have been because of the application of clause 95(2)(f.11)(ii)(D), the amount added under this paragraph shall be the amount that would have been so included in the absence of that clause; and (2) Subsection (1) applies in respect of a taxation year of a foreign affiliate of a taxpayer that ends in a taxation year of the taxpayer beginning on or after October 1, 2023. However, subsection (1) also applies in respect of a taxation year of a foreign affiliate of a taxpayer that ends in a taxation year of the taxpayer that begins before, and ends after, October 1, 2023 if (a) any of the taxpayer’s three immediately preceding taxation years was, because of a transaction or event or a series of transactions or events, shorter than it would have been in the absence of that transaction, event or series; and (b) it can reasonably be considered that one of the purposes of the transaction, event or series was to defer the application of paragraph 12(1)(l.2) of the Act, as enacted by subsection 2 (1), or the application of section 18.2 or 18.21 of the Act, as enacted by subsection 7 (1), to the taxpayer. 23 (1) The portion of subsection 94.2(2) of the Act before paragraph (a) is replaced by the following: Deemed corporation (2) If this subsection applies at any time to a beneficiary under, or a particular person in respect of, a trust, then for the purposes of applying this section, section 18.2, subsections 91(1) to (4), paragraph 94.1(1)(a), section 95, the definition restricted interest and financing expense in subsection 111(8) and section 233.4 to the beneficiary under, and, if applicable, to the particular person in respect of, the trust (2) Subsection (1) applies in respect of taxation years of a taxpayer that begin on or after October 1, 2023. However, subsection (1) also applies in respect of a taxation year that begins before, and ends after, October 1, 2023 if (a) any of the taxpayer’s three immediately preceding taxation years was, because of a transaction or event or a series of transactions or events, shorter than it would have been in the absence of that transaction, event or series; and (b) it can reasonably be considered that one of the purposes of the transaction, event or series was to defer the application of paragraph 12(1)(l.2) of the Act, as enacted by subsection 2 (1), or the application of section 18.2 or 18.21 of the Act, as enacted by subsection 7 (1), to the taxpayer. 24 (1) Paragraph (b) of the description of A in the definition foreign accrual property income in subsection 95(1) of the Act is replaced by the following: (b) a dividend from another foreign affiliate of the taxpayer, except for any portion of the dividend that would be deemed under subsection 113(5) not to be a dividend received by the affiliate on a share of the capital stock of the other affiliate for the purposes of section 113, if the affiliate were a corporation resident in Canada, (2) Paragraph (a) of the description of H in the definition foreign accrual property income in subsection 95(1) of the Act is replaced by the following: (a) if the affiliate was a member of a partnership at the end of the fiscal period of the partnership that ended in the year and the partnership received a dividend at a particular time in that fiscal period from a corporation that would be, if the reference in subsection 93.1(1) to “corporation resident in Canada” were a reference to “taxpayer resident in Canada”, a foreign affiliate of the taxpayer for the purposes of sections 93 and 113 at that particular time, then the portion of the amount of that dividend that (i) is included in the value determined for A in respect of the affiliate for the year and that would be, if the reference in subsection 93.1(2) to “corporation resident in Canada” were a reference to “taxpayer resident in Canada”, deemed by paragraph 93.1(2)(a) to have been received by the affiliate for the purposes of sections 93 and 113, and (ii) would not be deemed under subsection 113(5) not to be a dividend received by the affiliate on a share of the capital stock of the other affiliate for the purposes of section 113, if the affiliate were a corporation resident in Canada, and (3) Clause 95(2)(f.11)(ii)(A) of the Act is replaced by the following: (A) this Act is to be read without reference to subsections 12.7(3), 17(1), 18(4) and 18.4(4) and section 91, except that, where the foreign affiliate is a member of a partnership, section 91 is to be applied to determine the income or loss of the partnership and for that purpose subsection 96(1) is to be applied to determine the foreign affiliate’s share of that income or loss of the partnership, (4) Clause 95(2)(f.11)(ii)(A) of the Act, as enacted by subsection (3), is replaced by the following: (A) this Act is to be read without reference to subsections 12.7(3), 17(1), 18(4), 18.2(2) and 18.4(4) and section 91, except that, where the foreign affiliate is a member of a partnership, section 91 is to be applied to determine the income or loss of the partnership and for that purpose subsection 96(1) is to be applied to determine the foreign affiliate’s share of that income or loss of the partnership, (5) Clause 95(2)(f.11)(ii)(A) of the Act, as enacted by subsection (4), is replaced by the following: (A) this Act is to be read without reference to subsections 17(1), 18(4), 18.2(2) and 18.4(4) and section 91, except that, where the foreign affiliate is a member of a partnership, section 91 is to be applied to determine the income or loss of the partnership and for that purpose subsection 96(1) is to be applied to determine the foreign affiliate’s share of that income or loss of the partnership, (6) Subparagraph 95(2)(f.11)(ii) of the Act is amended by striking out “and” at the end of clause (B) and by adding the following after clause (C): (D) if the foreign affiliate is a controlled foreign affiliate of the taxpayer at the end of the taxation year, and the taxpayer is not an excluded entity (as defined in subsection 18.2(1)) for its taxation year (referred to in this clause as the “taxpayer year”) in which the taxation year ends, (I) notwithstanding any other provision of this Act, no deduction shall be made in respect of any amount that is included in the affiliate’s relevant affiliate interest and financing expenses (as defined in subsection 18.2(1)) for the taxation year, to the extent of the proportion of that amount that is determined by the first formula in subsection 18.2(2) in respect of the taxpayer for the taxpayer year, and (II) an amount is to be included, in determining the amount described in subparagraph (f)(ii) for the taxation year, that is equal to the amount that would be included under paragraph 12(1)(l.2) in determining the amount described in subparagraph (f)(ii) for the taxation year if 1 clause (A) were read without regard to its reference to subsection 18.2(2), and 2 the proportion that applied for the purposes of subparagraph (ii) of the description of B in paragraph 12(1)(l.2) were the proportion that is determined by the first formula in subsection 18.2(2) in respect of the taxpayer for the taxpayer year, and (E) notwithstanding any other provision of this Act, no deduction shall be made in respect of one or more amounts (each referred to in this clause as an “elected amount”) if (I) the elected amount would, in the absence of this clause, clause (D) and subsection 18.2(19), 1 be included in the foreign affiliate’s relevant affiliate interest and financing expenses (as defined in subsection 18.2(1)) for the taxation year, and 2 be deductible in determining the amount described in subparagraph (f)(ii), (II) the total of the elected amounts is equal to the lesser of the following amounts (determined without regard to this clause, clause (D) and subsection 18.2(19)): 1 the foreign affiliate’s foreign accrual property loss (as defined in subsection 5903(3) of the Income Tax Regulations ) for the taxation year, and 2 the foreign affiliate’s relevant affiliate interest and financing expenses (as defined in subsection 18.2(1)) for the taxation year, (III) the taxpayer files with the Minister, in respect of the elected amounts, an election in writing in prescribed manner under this clause, (IV) the election specifies 1 each of the elected amounts, 2 the foreign affiliate’s relevant affiliate interest and financing expenses (as defined in subsection 18.2(1)) (determined without regard to this clause and subsection 18.2(19)) for the taxation year, 3 the foreign affiliate’s relevant affiliate interest and financing expenses (as defined in subsection 18.2(1)) for the taxation year, 4 the foreign affiliate’s foreign accrual property loss (as defined in subsection 5903(3) of the Income Tax Regulations ) (determined without regard to this clause, clause (D) and subsection 18.2(19)) for the taxation year, and 5 the foreign affiliate’s foreign accrual property loss (as defined in subsection 5903(3) of the Income Tax Regulations ) or foreign accrual property income, as the case may be, for the taxation year, and (V) the election is filed on or before the filing-due date of the taxpayer for its taxation year in which the taxation year ends; (7) Subparagraph 95(2)(f.11)(ii) of the Act, as amended by subsection (6), is amended by striking out “and” at the end of clause (D), by adding “and” at the end of clause (E) and by adding the following after clause (E): (F) the following rules apply for the purposes of applying subsection 12.7(3) and the related provisions of section 18.4 in respect of a payment of which the foreign affiliate, or a partnership of which the foreign affiliate is a member, is a recipient: (I) the definitions in subsection 18.4(1) apply for the purposes of this clause, (II) subsection 12.7(3) is deemed not to apply in respect of the payment if 1 the foreign affiliate’s income or loss derived from the payment is included under subparagraph (a)(ii) in computing the foreign affiliate’s income or loss from an active business for a taxation year, or 2 in the case of a payment that subsection 18.4(9) deems to be made to the foreign affiliate or the partnership by a particular entity in respect of a notional interest expense on a particular debt, any income or loss that were derived by the foreign affiliate from the payment would, based on the relevant assumptions in respect of the payment, be included under subparagraph (a)(ii) in computing the foreign affiliate’s income or loss from an active business for a taxation year, (III) for the purposes of sub-subclause (II)2, the relevant assumptions in respect of the payment are 1 the payment is an amount of interest paid by the particular entity to the foreign affiliate or the partnership, as the case may be, under a legal obligation to pay interest on the particular debt in the taxation year of the foreign affiliate or the partnership in which an amount in respect of the payment would, in the absence of subclause (II), be included under subsection 12.7(3) in the income of the foreign affiliate or partnership, and 2 any amount that is deductible, in respect of the notional interest expense, is an amount deductible in respect of an expenditure for which the payment was made, and (IV) the definition Canadian ordinary income in subsection 18.4(1) is to be read as if 1 its subparagraph (a)(ii) read as follows: “(ii) the amount is described in paragraph (b) or (c) of the description of A in the definition foreign accrual property income in subsection 95(1), or”, and 2 the description of D in its paragraph (b) read as follows: “D is the total of all amounts, each of which is an amount, in respect of the payment, that is included in the description of H in the definition foreign accrual property income in subsection 95(1) in computing the foreign accrual property income of a member of the partnership for a taxation year; or”; (8) Subsections (1) and (2) apply in respect of any dividend received on or after July 1, 2024. (9) Subsection (3) applies in respect of payments arising on or after July 1, 2022. (10) Subsections (4) and (6) apply in respect of a taxation year of a foreign affiliate of a taxpayer that ends in a taxation year of the taxpayer beginning on or after October 1, 2023. However, subsections (4) and (6) also apply in respect of a taxation year of a foreign affiliate of a taxpayer that ends in a taxation year of the taxpayer that begins before, and ends after, October 1, 2023 if (a) any of the taxpayer’s three immediately preceding taxation years was, because of a transaction or event or a series of transactions or events, shorter than it would have been in the absence of that transaction, event or series; and (b) it can reasonably be considered that one of the purposes of the transaction, event or series was to defer the application of paragraph 12(1)(l.2) of the Act, as enacted by subsection 2 (1), or the application of section 18.2 or 18.21 of the Act, as enacted by subsection 7 (1), to the taxpayer. (11) Subsections (5) and (7) apply in respect of payments arising on or after July 1, 2024. 25 (1) Subparagraph 96(2.1)(b)(ii) of the Act is replaced by the following: (ii) the amount required by subsection 127(8) or 127.44(11) in respect of the partnership to be added in computing the investment tax credit or the CCUS tax credit (as defined in subsection 127.44(1)) of the taxpayer for the taxation year, (2) Subparagraph 96(2.1)(b)(ii) of the Act, as enacted by subsection (1), is replaced by the following: (ii) the amount required by subsections 127(8), 127.44(11) or 127.45(8) in respect of the partnership to be added in computing the investment tax credit, the CCUS tax credit (as defined in subsection 127.44(1)) or the clean technology investment tax credit (as defined in subsection 127.45(1)) of the taxpayer for the taxation year, (3) The portion of subsection 96(2.2) of the Act before paragraph (a) is replaced by the following: At-risk amount (2.2) For the purposes of this section and sections 111, 127, 127.44 and 127.47, the at-risk amount of a taxpayer, in respect of a partnership of which the taxpayer is a limited partner, at any particular time is the amount, if any, by which the total of (4) The portion of subsection 96(2.2) of the Act before paragraph (a), as enacted by subsection (3), is replaced by the following: At-risk amount (2.2) For the purposes of this section and sections 111, 127, 127.44, 127.45 and 127.47, the at-risk amount of a taxpayer, in respect of a partnership of which the taxpayer is a limited partner, at any particular time is the amount, if any, by which the total of (5) The portion of subsection 96(2.4) of the Act before paragraph (a) is replaced by the following: Limited partner (2.4) For the purposes of this section and sections 111, 127, 127.44 and 127.47 a taxpayer who is a member of a partnership at a particular time is a limited partner of the partnership at that time if the member’s partnership interest is not an exempt interest (within the meaning assigned by subsection (2.5)) at that time and if, at that time or within three years after that time, (6) The portion of subsection 96(2.4) of the Act before paragraph (a), as enacted by subsection (5), is replaced by the following: Limited partner (2.4) For the purposes of this section and sections 111, 127, 127.44, 127.45 and 127.47 a taxpayer who is a member of a partnership at a particular time is a limited partner of the partnership at that time if the member’s partnership interest is not an exempt interest (within the meaning assigned by subsection (2.5)) at that time and if, at that time or within three years after that time, (7) The portion of subsection 96(3) of the Act before paragraph (a) is replaced by the following: Agreement or election of partnership members (3) If a taxpayer who was a member of a partnership at any time in a fiscal period has, for any purpose relevant to the computation of the taxpayer’s income from the partnership for the fiscal period, made or executed an agreement, designation or election under or in respect of the application of any of subsections 10.1(1), 13(4), (4.2) and (16), the definition excluded interest in subsection 18.2(1), subsections 20(9) and 21(1) to (4), section 22, subsection 29(1), section 34, clause 37(8)(a)(ii)(B), subsections 44(1) and (6), 50(1) and 80(5) and (9) to (11), section 80.04, subsections 86.1(2), 88(3.1), (3.3) and (3.5) and 90(3), the definition relevant cost base in subsection 95(4) and subsections 97(2), 139.1(16) and (17) and 249.1(4) and (6) that, if this Act were read without reference to this subsection, would be a valid agreement, designation or election, (8) Subsections (1), (3) and (5) are deemed to have come into force on January 1, 2022. (9) Subsections (2), (4) and (6) are deemed to have come into force on March 28, 2023. (10) Subsection (7) applies in respect of taxation years that begin on or after October 1, 2023. 26 (1) Paragraph (a.1) of the definition trust in subsection 108(1) of the Act is replaced by the following: (a.1) a trust (other than a trust described in paragraph (a), (d) or (h), a trust to which subsection 7(2) or (6) applies or a trust prescribed for the purpose of subsection 107(2)) all or substantially all of the property of which is held for the purpose of providing benefits to individuals each of whom is provided with benefits in respect of, or because of, an office or employment or former office or employment of any individual, (2) The definition trust in subsection 108(1) of the Act is amended by striking out “or” at the end of paragraph (f), by adding “or” at the end of paragraph (g) and by adding the following after paragraph (g): (h) an employee ownership trust. (3) Subsections (1) and (2) apply in respect of transactions that occur on or after January 1, 2024. 27 (1) Subsection 111(1) of the Act is amended by adding the following after paragraph (a): Restricted interest and financing expenses (a.1) restricted interest and financing expenses for taxation years preceding the year, but no amount is deductible for the year in respect of restricted interest and financing expenses except to the extent of the amount determined by the formula A + B where A is the amount that would be the taxpayer’s excess capacity for the year if the amount determined for C in paragraph (b) of the definition excess capacity in subsection 18.2(1) were nil, and B is the total of all amounts, each of which is an amount of received capacity (as defined in subsection 18.2(1)) of the taxpayer for the year; (2) Clause 111(1)(e)(ii)(A) of the Act is replaced by the following: (A) the amount required by subsection 127(8) or 127.44(11) in respect of the partnership to be added in computing the investment tax credit or the CCUS tax credit (as defined in subsection 127.44(1)) of the taxpayer for the taxation year, (3) Clause 111(1)(e)(ii)(A) of the Act, as enacted by subsection (2), is replaced by the following: (A) the amount required by subsections 127(8), 127.44(11) or 127.45(8) in respect of the partnership to be added in computing the investment tax credit, the CCUS tax credit (as defined in subsection 127.44(1)) or the clean technology investment tax credit (as defined in subsection 127.45(1)) of the taxpayer for the taxation year, (4) The portion of subsection 111(3) of the Act before subparagraph (a)(i.1) is replaced by the following: Limitation on deductibility (3) For the purposes of subsection (1), (a) an amount in respect of a non-capital loss, restricted interest and financing expense, restricted farm loss, farm loss or limited partnership loss, as the case may be, for a taxation year is deductible, and an amount in respect of a net capital loss for a taxation year may be claimed, in computing the taxable income of a taxpayer for a particular taxation year only to the extent that it exceeds the total of (i) amounts deducted under this section in respect of that non-capital loss, restricted interest and financing expense, restricted farm loss, farm loss or limited partnership loss in computing taxable income (or, in the case of a restricted interest and financing expense, in computing a non-capital loss) for taxation years preceding the particular taxation year, (5) Paragraph 111(3)(a) of the Act is amended by striking out “and” at the end of subparagraph (i.1) and by adding the following after subparagraph (ii): (iii) amounts claimed in respect of that limited partnership loss in computing taxable income for taxation years preceding the particular taxation year to the extent that subsection 18.2(2) denied a deduction in respect of those amounts for the preceding taxation year; and (6) The portion of paragraph 111(3)(b) of the Act before subparagraph (i) is replaced by the following: (b) no amount is deductible in respect of a non-capital loss, restricted interest and financing expense, net capital loss, restricted farm loss, farm loss or limited partnership loss, as the case may be, for a taxation year until (7) Paragraph 111(3)(b) of the Act is amended by adding the following after subparagraph (i): (i.1) in the case of a restricted interest and financing expense, the restricted interest and financing expenses, (8) The portion of subsection 111(5) of the Act before subparagraph (a)(i) is replaced by the following: Loss restriction event — certain losses and expenses (5) If at any time a taxpayer is subject to a loss restriction event, (a) no amount in respect of the taxpayer’s non-capital loss, restricted interest and financing expense or farm loss for a taxation year that ended before that time is deductible by the taxpayer for a taxation year that ends after that time, except that the portion of the taxpayer’s non-capital loss, restricted interest and financing expense or farm loss, as the case may be, for a taxation year that ended before that time as may reasonably be regarded as the taxpayer’s loss from carrying on a business or the taxpayer’s expense or loss incurred in the course of carrying on a business, as the case may be, and, if a business was carried on by the taxpayer in that year, the portion of the non-capital loss as may reasonably be regarded as being in respect of an amount deductible under paragraph 110(1)(k) in computing the taxpayer’s taxable income for that year is deductible by the taxpayer for a particular taxation year that ends after that time (9) Section 111 of the Act is amended by adding the following after subsection (5): Loss restriction event – cumulative unused excess capacity (5.01) If at any time a particular taxpayer is subject to a loss restriction event, the cumulative unused excess capacity of any taxpayer for any taxation year that ends after that time shall be determined without regard to any absorbed capacity, excess capacity or transferred capacity of the particular taxpayer for any taxation year that ended before that time. (10) Paragraph (b) of the description of E in the definition non-capital loss in subsection 111(8) of the Act is replaced by the following: (b) an amount deducted under paragraph (1)(a.1) or (b) or section 110.6, or deductible under any of paragraphs 110(1)(d) to (d.3), (f), (g) and (k), section 112 and subsections 113(1) and 138(6), in computing the taxpayer’s taxable income for the year, or (11) Subsection 111(8) of the Act is amended by adding the following in alphabetical order: restricted interest and financing expense  of a taxpayer for a taxation year means the amount determined by the formula A + B + C where A is the total of all amounts each of which is the portion of an amount that is not deductible in computing the income for the taxation year of the taxpayer from a business or property, or the taxable income of the taxpayer for the year, or does not reduce the amount determined under paragraph 3(b) in respect of the taxpayer for the year, because of subsection 18.2(2), B is the amount determined under paragraph 12(1)(l.2) in respect of the taxpayer for the taxation year, and C is the total of all amounts, each of which is an amount determined by the formula D × E where D is the portion of an amount that is not deductible because of subclause 95(2)(f.11)(ii)(D)(I), or an amount that is included because of subclause 95(2)(f.11)(ii)(D)(II), in determining, in respect of the taxpayer for an affiliate taxation year (as defined in subsection 18.2(1)) of a controlled foreign affiliate of the taxpayer ending in the taxation year, an amount of the affiliate that is described in subparagraph 95(2)(f)(ii), and E is the taxpayer’s specified participating percentage (as defined in subsection 18.2(1)) in respect of the affiliate for the affiliate taxation year; ( dépense d’intérêts et de financement restreinte ) (12) The portion of subsection 111(9) of the Act before paragraph (a) is replaced by the following: Exception (9) In this section, a taxpayer’s non-capital loss, restricted interest and financing expense, net capital loss, restricted farm loss, farm loss and limited partnership loss for a taxation year during which the taxpayer was not resident in Canada shall be determined as if (13) Subsections (1) and (4) to (12) apply in respect of taxation years of a taxpayer that begin on or after October 1, 2023. However, subsections (1) to (10) also apply in respect of a taxation year of a taxpayer that begins before, and ends after, October 1, 2023 if (a) any of the taxpayer’s three immediately preceding taxation years was, because of a transaction or event or a series of transactions or events, shorter than it would have been in the absence of that transaction, event or series; and (b) it can reasonably be considered that one of the purposes of the transaction, event or series was to defer the application of paragraph 12(1)(l.2) of the Act, as enacted by subsection 2 (1), or the application of section 18.2 or 18.21 of the Act, as enacted by subsection 7 (1), to the taxpayer. (14) Subsection (2) is deemed to have come into force on January 1, 2022. (15) Subsection (3) is deemed to have come into force on March 28, 2023. 28 (1) Section 112 of the Act is amended by adding the following after subsection (2): Mark-to-market property (2.01) No deduction may be made under subsection (1) or (2) or 138(6) in computing the taxable income of a corporation for a taxation year in respect of a dividend received on a share if (a) the corporation is a financial institution at any time in the year; and (b) the share (i) is a mark-to-market property of the corporation for the year, or (ii) would be a mark-to-market property of the corporation for the year if the share was held at any time in the year by the corporation. Tracking property and preferred shares (2.02) For the purpose of paragraph (2.01)(b), (a) a share (other than a share of a financial institution) is deemed to be a mark-to-market property of the corporation for the year if the share (i) is a tracking property of the corporation at any time in the year, or (ii) would be a tracking property of the corporation if the share was held at any time in the year by the corporation; and (b) a taxable preferred share is deemed not to be a mark-to-market property of the corporation for the year unless the share would be described in subparagraph (a)(i) or (ii) if paragraph (a) were read without reference to “(other than a share of a financial institution)”. (2.03) Subsection (2.01) does not apply to a dividend received by an insurance corporation in a taxation year that is (a) either (i) received on a share (other than a share described in subparagraph (2.02)(a)(i)) held by the corporation in connection with an insurance contract entered into, issued or acquired in the ordinary course of an insurance business of the corporation, or (ii) deemed to be received by the corporation as a result of a designation by a mutual fund trust under subsection 104(19) in respect of a unit of the trust that is held by the corporation in connection with an insurance contract entered into, issued or acquired in the ordinary course of an insurance business of the corporation; and (b) identified in the corporation’s return of income under this Part for the year. (2) Paragraph 112(6)(c) of the Act is replaced by the following: (c) financial institution , mark-to-market property and tracking property have the same meaning as in subsection 142.2(1). (3) Subsections (1) and (2) apply in respect of dividends received after 2023. 29 (1) Subsection 113(3) of the Act is amended by adding the following definitions in alphabetical order: deductible , in relation to an amount in respect of a payment, in computing relevant foreign income or profits, has the same meaning as in subsection 18.4(1). ( déductible ) entity  has the same meaning as in subsection 95(1). ( entité ) equity interest  has the same meaning as in subsection 18.4(1). ( participation au capital ) foreign expense restriction rule  has the same meaning as in subsection 18.4(1). ( régle étrangère de restriction des dépenses ) foreign hybrid mismatch rule  has the same meaning as in subsection 18.4(1). ( règle étrangère d’asymétrie hybride ) foreign taxation year  of an entity has the same meaning as in subsection 18.4(1). ( année d’imposition étrangère ) relevant foreign income or profits  of an entity for a foreign taxation year has the same meaning as in subsection 18.4(1). ( revenus ou bénéfices étrangers pertinents ) (2) Section 113 of the Act is amended by adding the following after subsection (4): Deduction restriction (5) Any amount that, in the absence of this subsection, would be a dividend received by a corporation resident in Canada on a share owned by it of the capital stock of a foreign affiliate of the corporation is deemed, for the purposes of this section (other than this subsection), not to be a dividend received by the corporation on a share of the capital stock of the affiliate to the extent of the total of all amounts, each of which, in respect of the dividend, (a) is an amount that is or can reasonably be expected to be deductible in computing (i) relevant foreign income or profits, for a foreign taxation year, of (A) the affiliate, or (B) another entity (other than the corporation) because that entity has a direct or indirect equity interest in the affiliate, or (ii) income or profits of the affiliate that are taken into account in determining relevant foreign income or profits of another entity for a foreign taxation year; or (b) would, in the absence of any foreign hybrid mismatch rule or foreign expense restriction rule, be described in paragraph (a). Deduction for foreign taxes (6) If, for the purposes of this section (other than subsection (5)), all or any portion of a particular amount is deemed by subsection (5) not to be a dividend received by a corporation on a share of the capital stock of a foreign affiliate in a taxation year of the corporation, there may be deducted from the corporation’s income for the taxation year for the purpose of computing its taxable income for the year an amount equal to the lesser of (a) the particular amount or portion of the particular amount, as the case may be, and (b) the amount determined by the formula A × B where A is the non-business-income tax paid by the corporation applicable to the particular amount or portion of the particular amount, as the case may be, and B is the corporation’s relevant tax factor for the year. Filing Requirement (7) Each corporation shall file with its return of income for a taxation year a prescribed form containing prescribed information if subsection (5) deems an amount not to be a dividend received by the corporation on a share of the capital stock of a foreign affiliate. (3) Subsections (1) and (2) apply in respect of any dividend received by a corporation resident in Canada on a share owned by the corporation of the capital stock of a foreign affiliate of the corporation on or after July 1, 2022, except that subsection 113(7) of the Act, as enacted by subsection (2), does not apply in respect of any dividend received before July 1, 2023. 30 (1) Subsection 122.8(1) of the Act is amended by adding the following in alphabetical order: relevant census  means (a) for the 2023 and 2024 taxation years, the 2016 census published by Statistics Canada; and (b) in any other case, the last census published by Statistics Canada before the taxation year. ( recensement pertinent ) (2) Paragraph (a) of the description of E in subsection 122.8(4) of the Act is replaced by the following: (a) 1.2, if there is a census metropolitan area, as determined in the relevant census, in the relevant province and the individual does not reside in a census metropolitan area at the beginning of the specified month, and (3) Subsections (1) and (2) apply to the 2023 and subsequent taxation years. 31 (1) The portion of section 123.3 of the Act before paragraph (a) is replaced by the following: Refundable tax — CCPC or substantive CCPC 123. 3 There shall be added to the tax otherwise payable under this Part for each taxation year by a corporation that is a Canadian-controlled private corporation throughout the year — or a substantive CCPC at any time in the year — an amount equal to 10 2/3% of the lesser of (2) Subsection (1) applies to taxation years that end on or after April 7, 2022. 32 (1) The portion of paragraph (b) of the definition full rate taxable income in subsection 123.4(1) of the Act before subparagraph (i) is replaced by the following: (b) if the corporation is a Canadian-controlled private corporation throughout the year or a substantive CCPC at any time in the year, the amount by which that portion of the corporation’s taxable income for the year that is subject to tax under subsection 123(1) exceeds the total of (2) Subsection (1) applies to taxation years that end on or after April 7, 2022. 33 (1) The description of A in subsection 125.2(2) of the Act is replaced by the following: A is (a) 0.075, if the taxation year begins after 2021 and before 2032, (b) 0.05625, if the taxation year begins after 2031 and before 2033, (c) 0.0375, if the taxation year begins after 2032 and before 2034, (d) 0.01875, if the taxation year begins after 2033 and before 2035, and (e) nil, in any other case; (2) The description of C in subsection 125.2(2) of the Act is replaced by the following: C is (a) 0.045, if the taxation year begins after 2021 and before 2032, (b) 0.03375, if the taxation year begins after 2031 and before 2033, (c) 0.0225, if the taxation year begins after 2032 and before 2034, (d) 0.01125, if the taxation year begins after 2033 and before 2035, and (e) nil, in any other case; and 34 (1) Paragraph 127(8.1)(b) of the Act is replaced by the following: (b) the taxpayer’s at-risk amount in respect of the partnership, less the total of all amounts required by a clean economy allocation provision (as defined in subsection 127.47(1)) to be added in computing a clean economy tax credit (as defined in subsection 127.47(1)) of the taxpayer at the end of that fiscal period. (2) The definition government assistance in subsection 127(9) of the Act is replaced by the following: government assistance  means assistance from a government, municipality or other public authority whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or as any other form of assistance, other than as a deduction under subsection (5) or (6) or a deemed payment on account of tax payable under subsection 127.44(2); ( aide gouvernementale ) (3) The definition government assistance in subsection 127(9) of the Act, as amended by subsection (2), is replaced by the following: government assistance  means assistance from a government, municipality or other public authority whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or as any other form of assistance, other than as a deduction under subsection (5) or (6) or a deemed payment on account of tax payable under subsection 127.44(2) or 127.45(2); ( aide gouvernementale ) (4) The definition non-government assistance in subsection 127(9) of the Act is replaced by the following: non-government assistance  means an amount (other than an amount received directly from a government, municipality or other public authority) that would be included in income under paragraph 12(1)(x) if that paragraph were read without reference to subparagraphs 12(1)(x)(v) to (vii); ( aide non gouvernementale ) (5) Subsections (1) and (2) are deemed to have come into force on January 1, 2022. (6) Subsection (3) is deemed to have come into force on March 28, 2023. 35 (1) The Act is amended by adding the following after section 127.43: Definitions 127.44 (1) The following definitions apply in this section, Part XII.7 and in Schedule II to the Income Tax Regulations . captured carbon  means captured carbon dioxide that (a) would otherwise be released into the atmosphere; or (b) is captured directly from the ambient air. ( carbone capté ) CCUS process  means the process of carbon capture, utilization and storage that includes the (a) capture of carbon dioxide (i) that would otherwise be released into the atmosphere, or (ii) directly from the ambient air; and (b) storage or use of the captured carbon. ( processus de CUSC ) CCUS project  means a project that is intended to support a CCUS process by (a) capturing carbon dioxide (i) that would otherwise be released into the atmosphere, or (ii) directly from the ambient air; (b) transporting captured carbon; or (c) storing or using captured carbon. ( projet de CUSC ) CCUS tax credit  means an amount deemed under subsection (2) to have been paid by a taxpayer on account of its tax payable under this Part for the year. ( crédit d’impôt pour le CUSC ) dedicated geological storage , in respect of a CCUS project, means a geological formation that is located in a jurisdiction that was a designated jurisdiction at the time that the first qualified CCUS expenditure was made in respect of the project and that is, at the time a relevant expenditure is incurred, (a) capable of permanently storing captured carbon; (b) authorized and regulated for the storage of captured carbon under the laws of the designated jurisdiction; and (c) a formation in which no captured carbon is used for enhanced oil recovery. ( stockage géologique dédié ) designated jurisdiction  means (a) the provinces of British Columbia, Saskatchewan and Alberta; and (b) any other jurisdiction within Canada (including the exclusive economic zone of Canada) or the United States for which a designation by the Minister of the Environment under subsection (13) is in effect. ( juridiction désignée ) dual-use equipment  means equipment that is part of a CCUS project of a taxpayer and that is described in any of the following paragraphs (and, in the case of property acquired before the first day of commercial operations of the CCUS project, is verified by the Minister of Natural Resources as being described in any of the following paragraphs): (a) equipment that is not used for natural gas processing or acid gas injection, and that (i) generates electrical energy, heat energy or a combination of electrical and heat energy, if more than 50% of either the electrical energy or heat energy that is expected to be produced over the total CCUS project review period, based on the most recent project plan, is expected (not including equipment that supports the qualified CCUS project indirectly by way of an electrical utility grid) to directly support (A) a qualified CCUS project, unless the equipment uses fossil fuels and emits carbon dioxide that is not subject to capture by a qualified CCUS project, or (B) hydrogen production from electrolysis or natural gas as long as emissions are abated by a qualified CCUS project, unless the equipment uses fossil fuels and emits carbon dioxide that is not subject to capture by a qualified CCUS project, (ii) delivers, collects, recovers, treats or recirculates water, or a combination of any of those activities, in support of a qualified CCUS project, (iii) is transmission equipment that directly transmits electrical energy from a system described in subparagraph (a)(i) to a qualified CCUS project and more than 50% of the electrical energy to be transmitted by the equipment over the total CCUS project review period, based on the most recent project plan, is expected to support the qualified CCUS project or hydrogen production from electrolysis or natural gas as long as emissions are abated by a qualified CCUS project, or (iv) is distribution equipment that distributes electrical or heat energy; (b) equipment that is physically and functionally integrated with the equipment described in paragraph (a) (for greater certainty, excluding construction equipment, furniture, office equipment and vehicles) and that is ancillary equipment used solely to support the functioning of equipment described in paragraph (a) within a CCUS process as part of (i) an electrical system, (ii) a fuel supply system, (iii) a liquid delivery and distribution system, (iv) a cooling system, (v) a process material storage and handling and distribution system, (vi) a process venting system, (vii) a process waste management system, or (viii) a utility air or nitrogen distribution system; (c) equipment that is (i) used as part of a control, monitoring or safety system solely to support the equipment described in paragraphs (a) or (b), (ii) a building or other structure all or substantially all of which is used, or to be used, for the installation or operation of equipment described in paragraph (a), (b) or subparagraph (i), or (iii) used solely to convert another property that would not otherwise be described in paragraph (a) or (b) or subparagraphs (i) and (ii) if the conversion causes the other property to satisfy the description in the paragraphs (a) or (b) or subparagraphs (i) or (ii); or (d) equipment used solely to refurbish property described in paragraphs (a) or (b) or subparagraphs (c)(i) and (ii) that is part of the CCUS project of the taxpayer. ( matériel à double usage ) eligible use  means (a) the storage of captured carbon in dedicated geological storage; or (b) the use of captured carbon in producing concrete in Canada or the United States using a qualified concrete storage process. ( utilisation admissible ) first day of commercial operations  means the day that is 120 days after the day on which captured carbon dioxide is first delivered to a carbon transportation, carbon storage or carbon use system for the purpose of storage or use on an ongoing operational basis. ( premier jour des activités commerciales ) ineligible use  means (a) the emission of captured carbon into the atmosphere, other than (i) for the purposes of system integrity or safety, or (ii) incidental emission made in the ordinary course of operations; (b) the storage or use of captured carbon for enhanced oil recovery; and (c) any other storage or use that is not an eligible use. ( utilisation non admissible ) non-government assistance  has the same meaning as in subsection 127(9). ( aide non gouvernementale ) preliminary CCUS work activity  means an activity that is preliminary to the acquisition, construction, fabrication or installation by or on behalf of a taxpayer of property described in Class 57 or 58 in Schedule II to the Income Tax Regulations in respect of the taxpayer’s CCUS project including, but not limited to, a preliminary activity that is (a) obtaining permits or regulatory approvals; (b) performing front-end design or engineering work, including front-end engineering design studies (or equivalent studies as determined by the Minister of Natural Resources) but excluding detailed design or engineering work in relation to specific property included in Class 57 or Class 58; (c) conducting feasibility studies or pre-feasibility studies (or equivalent studies as determined by the Minister of Natural Resources); (d) conducting environmental assessments; or (e) clearing or excavating land. ( travaux préliminaires de CUSC ) projected eligible use percentage , in respect of a CCUS project, for a period is the amount, expressed as a percentage, determined by the formula A ÷ B where A is the quantity of captured carbon that the CCUS project is expected, based on the project’s most recent project plan, to support for storage or use in eligible use during the period; and B is the total quantity of captured carbon that the CCUS project is expected, based on the project’s most recent project plan, to support for storage or use in both eligible use and ineligible use during the period. ( pourcentage d’utilisation admissible prévu ) project plan  means a plan for a CCUS project that (a) reflects a front-end engineering design study (or an equivalent study as determined by the Minister of Natural Resources) for the CCUS project; (b) describes the quantity of captured carbon that the CCUS project is expected to support for storage or use in each calendar year over its total CCUS project review period, in (i) eligible use, and (ii) ineligible use; (c) contains information required in guidelines published by the Minister of Natural Resources; and (d) is filed with the Minister of Natural Resources, in the form and manner determined by that Minister, before the project’s first day of commercial operations.  ( plan de projet ) qualified carbon capture expenditure  of a taxpayer for a taxation year means an amount that is the portion of an expenditure incurred by the taxpayer to acquire a property in the year, in respect of a qualified CCUS project of the taxpayer, determined by the formula A × (B + C + D + E) × F where A is, in respect of property acquired by the taxpayer in the year (other than property situated outside of Canada), (a) the capital cost of property described in (and, in the case of property acquired before the first day of commercial operations of the project, verified by the Minister of Natural Resources as being property described in) (i) paragraph (a) of Class 57 in Schedule II to the Income Tax Regulations , or (ii) any of paragraphs (d) to (g) of Class 57 in Schedule II to the Income Tax Regulations in relation to equipment described in paragraph (a) of that Class, or (b) the proportion of the capital cost of dual-use equipment that, (i) if the equipment is described in subparagraph (a)(i) of the definition dual-use equipment in this subsection, or is acquired in relation to such equipment, the amount of energy expected to be produced for use in a qualified CCUS project over the project’s total CCUS project review period is of the total amount of energy expected to be produced by the equipment in that period (determined without regard to energy produced and consumed by the equipment in the process of producing energy), based on the project’s most recent project plan, (ii) if the equipment is described in subparagraph (a)(ii) of the definition dual-use equipment in this subsection, or is acquired in relation to such equipment, the mass of water expected to be returned from a qualified CCUS project over the project’s total CCUS project review period is of the total mass of water expected to be returned to the equipment in that period, based on the project’s most recent project plan, (iii) if the equipment is described in subparagraph (a)(iii) of the definition dual-use equipment in this subsection, or is acquired in relation to such equipment, the amount of electrical energy expected to be transmitted by the equipment for use in a qualified CCUS project over the total CCUS project review period is of the total amount of electrical energy expected to be transmitted by the equipment in that period (determined without regard to electrical energy consumed by the equipment in the process of transmission), based on the project’s most recent project plan, and (iv) if the equipment is described in subparagraph (a)(iv) of the definition dual-use equipment in this subsection, or is acquired in relation to such equipment, the amount of electrical or heat energy expected to be distributed by the equipment (or if it is distribution equipment that expands the capacity of existing equipment, the electrical or heat energy expected to be distributed by the existing and new equipment) for use in a qualified CCUS project over the total CCUS project review period is of the total amount of electrical or heat energy expected to be distributed by the equipment (or the existing and new equipment) in that period (determined without regard to energy consumed by the equipment in the process of distribution), based on the project’s most recent project plan; B is (a) if the time of the expenditure is after the first project period, nil, or (b) in any other case, the projected eligible use percentage for the first project period; C is (a) if the time of the expenditure is after the second project period, nil, or (b) in any other case, the projected eligible use percentage for the second project period; D is (a) if the time of the expenditure is after the third project period, nil, or (b) in any other case, the projected eligible use percentage for the third project period; E is the projected eligible use percentage for the fourth project period; and F is (a) if the time of the expenditure is before the second project period, 0.25, (b) if the time of the expenditure is during the second project period, 0.33, (c) if the time of the expenditure is during the third project period, 0.5, and (d) if the time of the expenditure is during the fourth project period, 1. ( dépense admissible pour le captage du carbone ) qualified carbon storage expenditure  of a taxpayer for a taxation year means an amount that is the capital cost incurred by the taxpayer to acquire in the year, in respect of a qualified CCUS project of the taxpayer, a property (other than property situated outside of Canada) that is (a) expected, based on the qualified CCUS project’s most recent project plan before the time the expenditure is incurred, to support storage of captured carbon solely in a manner described in paragraph (a) of the definition of eligible use ; and (b) described in (and, in the case of property acquired before the first day of commercial operations of the project, verified by the Minister of Natural Resources as being property described in) (i) paragraph (c) of Class 57 in Schedule II to the Income Tax Regulations , or (ii) any of paragraphs (d) to (g) of Class 57 in Schedule II to the Income Tax Regulations in relation to equipment described in paragraph (c) of that Class. ( dépense admissible pour le stockage du carbone ) qualified carbon transportation expenditure  of a taxpayer for a taxation year means an amount that is the portion of an expenditure incurred by the taxpayer to acquire a property in the year in respect of a qualified CCUS project of the taxpayer, determined by the formula A × (B + C + D + E) × F where A is, in respect of property acquired by the taxpayer in the year (other than property situated outside of Canada), the capital cost of property described in (and, in the case of property acquired before the first day of commercial operations of the project, verified by the Minister of Natural Resources as being property described in) (a) paragraph (b) of Class 57 in Schedule II to the Income Tax Regulations , or (b) any of paragraphs (d) to (g) of Class 57 in Schedule II to the Income Tax Regulations in relation to equipment described in paragraph (b) of that Class; B is (a) if the time of the expenditure is after the first project period, nil, or (b) in any other case, the projected eligible use percentage for the first project period; C is (a) if the time of the expenditure is after the second project period, nil, or (b) in any other case, the projected eligible use percentage for the second project period; D is (a) if the time of the expenditure is after the third project period, nil, or (b) in any other case, the projected eligible use percentage for the third project period; E is the projected eligible use percentage for the fourth project period; and F is (a) if the time of the expenditure is before the second project period, 0.25, (b) if the time of the expenditure is during the second project period, 0.33, (c) if the time of the expenditure is during the third project period, 0.5, and (d) if the time of the expenditure is during the fourth project period, 1. ( dépense admissible pour le transport du carbone ) qualified carbon use expenditure  of a taxpayer for a taxation year means an amount that is the capital cost incurred by the taxpayer to acquire in the year, in respect of a qualified CCUS project of the taxpayer, a property (other than property situated outside of Canada) that is (a) described in (and, in the case of property acquired before the first day of commercial operations of the project, verified by the Minister of Natural Resources as being property described in) any of paragraphs (a) to (e) of Class 58 in Schedule II to the Income Tax Regulations ; and (b) expected, based on the qualified CCUS project’s most recent project plan before the time the expenditure is incurred, to support storage or use of captured carbon solely in a manner described in paragraph (b) of the definition of eligible use . ( dépense admissible pour l’utilisation du carbone ) qualified CCUS expenditure  means a (a) qualified carbon capture expenditure; (b) qualified carbon transportation expenditure; (c) qualified carbon storage expenditure; or (d) qualified carbon use expenditure.   ( dépense de CUSC admissible ) qualified CCUS project  means a CCUS project of a taxpayer that meets the following conditions: (a) it is expected, based on the project’s most recent project plan, to support the capture of carbon dioxide in Canada for a period that is at least equal to the total CCUS project review period for the project; (b) an initial project evaluation has been issued by the Minister of Natural Resources, in the form and manner determined by the Minister of Natural Resources, in respect of the project; (c) based on the most recent project plan for the project, its projected eligible use percentage equals or exceeds 10% in each of the following periods: (i) if the first project period begins after September of a calendar year, the period beginning on the first day of commercial operations and ending on December 31 of the following calendar year, and (ii) each calendar year of the project’s total CCUS project review period, other than a period that includes a year referred to in subparagraph (i); and (d) it is not a project that is (i) operated to service a unit (as defined under the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations ) for which the commissioning date (as defined under the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations ) was on or before April 7, 2022, and (ii) undertaken for the purpose of complying with emission standards that apply, or will apply, under the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations . ( projet de CUSC admissible ) qualified concrete storage process  means a process evaluated against the ISO 14034:2016 standard Environmental management — Environmental technology verification for which a validation statement confirming that at least 60% of the captured carbon that is injected into concrete is expected to be mineralized and permanently stored in the concrete has been issued by a professional or organization that (a) is accredited as a verification body, under ISO 14034:2016, Environmental management – Environmental technology verification and ISO/IEC 17020:2012, Conformity assessment — Requirements for the operation of various types of bodies performing inspection , by the Standards Council of Canada, the ANSI National Accreditation Board (U.S.) or any other accreditation organization that is a member of the International Accreditation Forum; and (b) meets the requirements of a third-party inspection body described in ISO/IEC 17020:2012, Conformity assessment — Requirements for the operation of various types of bodies performing inspection . ( processus de stockage dans le béton admissible ) qualifying taxpayer  means a taxable Canadian corporation. ( contribuable admissible ) specified percentage  means, in respect of a (a) qualified carbon capture expenditure if incurred to capture carbon (i) directly from ambient air (A) after 2021 and before 2031, 60%, (B) after 2030 and before 2041, 30%, or (C) after 2040, 0%, or (ii) other than directly from ambient air (A) after 2021 and before 2031, 50%, (B) after 2030 and before 2041, 25%, or (C) after 2040, 0%; and (b) qualified carbon transportation expenditure, qualified carbon storage expenditure or qualified carbon use expenditure if incurred (i) after 2021 and before 2031, 37 1/2%, (ii) after 2030 and before 2041, 18 3/4%, or (iii) after 2040, 0%. ( pourcentage déterminé ) total CCUS project review period , in respect of a CCUS project, means the period beginning on the first day of commercial operations of the project and ending on the last day of the fourth project period. ( période totale d’examen du projet de CUSC ) Tax credit (2) Where a qualifying taxpayer files a prescribed form containing prescribed information on or before its filing-due date for a taxation year, the taxpayer is deemed to have paid on its balance-due day for the year an amount on account of its tax payable under this Part for the year equal to the total of (a) the amount, if any, by which the taxpayer’s cumulative CCUS development tax credit for the year exceeds its cumulative CCUS development tax credit for the immediately preceding taxation year, and (b) the taxpayer’s CCUS refurbishment tax credit for the year. Deemed deduction (3) For the purposes of this section, paragraph 12(1)(t), subsection 13(7.1), the description of I in the definition undepreciated capital cost in subsection 13(21), subsection 53(2), section 127.45 and Part XII.7, the amount deemed under subsection (2) to have been paid by a taxpayer for a taxation year is deemed to have been deducted from the taxpayer’s tax otherwise payable under this Part for the year. Cumulative CCUS development tax credit (4) For the purposes of this Act, a taxpayer’s cumulative CCUS development tax credit for a taxation year is the total of all amounts, each of which is, in respect of an expenditure incurred for a qualified CCUS project of the taxpayer before the first day of commercial operations of the CCUS project (a) a qualified CCUS expenditure incurred in the year or a previous taxation year by the taxpayer multiplied by the applicable specified percentage; or (b) an amount required because of subsection (11) to be added in computing the taxpayer’s cumulative CCUS development tax credit at the end of the year or a previous year. CCUS refurbishment tax credit (5) For the purposes of this Act, a CCUS refurbishment tax credit of a taxpayer for a taxation year is the total of all amounts, each of which is, in respect of an expenditure incurred for a qualified CCUS project of the taxpayer in the year and during the total CCUS project review period (a) a qualified CCUS expenditure incurred in the year by the taxpayer multiplied by the applicable specified percentage; or (b) an amount required because of subsection (11) to be added in computing the taxpayer’s CCUS refurbishment tax credit at the end of the year. Changes to project or eligible use (6) A taxpayer with a qualified CCUS project shall file, within 90 days after the occurrence of either of the events described in paragraph (a) or (b), a revised project plan for the project with the Minister of Natural Resources, in the form and manner determined by the Minister of Natural Resources if, before the first day of commercial operations of the project, (a) the Minister of Natural Resources determines that there has been a material change to the project and requests that the taxpayer file a revised project plan for the project; or (b) there has been a reduction (as compared to the most recent project plan for the project) of more than five percentage points in the projected eligible use percentage in respect of the project during any project period. Revised project evaluation (7) If a taxpayer files a revised project plan in accordance with subsection (6), the Minister of Natural Resources shall issue a revised project evaluation with all due dispatch. Qualified CCUS project determination (8) For the purposes of this section and Part XII.7, (a) the Minister may, in consultation with the Minister of Natural Resources, determine that one or more CCUS projects is one project or multiple projects (i) at any time before an initial project evaluation of a CCUS project has been issued by the Minister of Natural Resources, or (ii) if the Minister of Natural Resources has requested the filing of a revised project plan for the project, after the revised project plan has been submitted, but before a revised project evaluation has been issued by the Minister of Natural Resources in respect of the revised project plan, (b) any determination under paragraph (a) is deemed to result in the CCUS project or CCUS projects, as the case may be, being one project or multiple projects, as the case may be; (c) for each project determined under paragraph (a), a project plan shall be filed by a taxpayer with the Minister of Natural Resources (in the form and manner determined by the Minister of Natural Resources) on or before the day that is 180 days after the determination is made; and (d) the Minister of Natural Resources may request from a taxpayer all reasonable documentation and information necessary for the Minister of Natural Resources to fulfill a responsibility under this section, including final detailed engineering designs, and may refuse to verify an expenditure or issue an initial project evaluation or a revised project evaluation under this section if such documentation or information is not provided by the taxpayer on or before the day that is 180 days after it was requested. Special rules — adjustments (9) For the purposes of this section and Part XII.7, (a) the capital cost to a taxpayer of a property of Class 57 or 58 in Schedule II to the Income Tax Regulations shall be (i) determined without reference to subsections 13(7.1) and (7.4), and (ii) reduced by the amount of any non-government assistance that, at the time of the filing of the taxpayer’s return of income under this Part for the taxation year, the taxpayer has received, is entitled to receive or can reasonably be expected to receive in respect of the property; (b) the amount of a qualified CCUS expenditure of a taxpayer in a taxation year in respect of a CCUS project shall not include (i) any amount in respect of an expenditure incurred by the taxpayer before 2022 or after 2040, (ii) any amount in respect of any expenditure incurred (A) to acquire property that has been used for any purpose by any person or partnership before it was acquired by the taxpayer, (B) for which a tax credit was previously deducted under this section, by any person in respect of the property to which the expenditure relates (other than an expenditure for repair or replacement of that property), or (C) for which an investment tax credit is claimed under section 127 or a clean technology investment tax credit is claimed under section 127.45, (iii) any amount in respect of an expenditure incurred for a preliminary CCUS work activity, (iv) any amount that has, by virtue of section 21, been added to the cost of a property, (v) an expenditure that is incurred by a taxpayer on or after the first day of commercial operations of the CCUS project to the extent that the total of all such amounts exceeds 10% of the total of all qualified CCUS expenditures incurred by the taxpayer before the first day of commercial operations of the CCUS project, or (vi) except where subsection 211.92(11) applies, an expenditure incurred by a taxpayer to acquire a property that is disposed of, or exported from Canada, by the taxpayer in the same taxation year as it was acquired; (c) except for the purposes of subparagraph (b)(i), and subject to subsection (12), if a taxpayer has acquired property outside Canada, the expenditure is deemed to have been incurred, and the property acquired, at the time it is imported into Canada; (d) subsections 127(11.6) to (11.8) apply in this section in respect of an expenditure or cost to a taxpayer except that (i) the reference in subsection 127(11.6) to subsection 127(11.5) shall be read as a reference to section 127.44, (ii) the reference in subsection 127(11.6) to subsection 127(26) shall be read as a reference to subsection 127.44(12), and (iii) the term “qualified expenditure” is to be read as “qualified CCUS expenditure”; (e) if an expenditure of a taxpayer would be a qualified CCUS expenditure, except that the expenditure is incurred in a different taxation year from the year in which the related property is acquired, the expenditure is deemed to be incurred, and the property is deemed to be acquired, in the later of the two years; (f) for the purposes of determining whether a process is a CCUS process, whether a property is described in Class 57 or 58 of Schedule II to the Income Tax Regulations or whether a property is dual-use equipment, the technical guide published by the Department of Natural Resources shall apply conclusively with respect to engineering and scientific matters; (g) if the taxpayer has failed to file a revised project plan required to be filed under subsection (6) by the deadline in that subsection, (i) subject to subparagraph (ii), a taxpayer’s projected eligible use percentage for a CCUS project is deemed to be nil for the total CCUS project review period until such time as the taxpayer has filed the revised project plan, and (ii) once the taxpayer has filed the revised project plan, subparagraph (i) is deemed never to have applied. Repayment of assistance (10) If a taxpayer has, in a particular taxation year, repaid (or has not received and can no longer reasonably be expected to receive) an amount of non-government assistance that was applied to reduce the capital cost of a property under subparagraph (9)(a)(ii) for a preceding taxation year, the amount repaid (or no longer expected to be received) shall be added to the capital cost to the taxpayer of a property acquired for the purpose of determining the taxpayer’s qualified CCUS expenditure (under the relevant paragraph of that definition) for the particular year. Partnerships (11) Subject to section 127.47, if, in a particular taxation year of a qualifying taxpayer who is a member of a partnership, an amount would be determined under subsection (2) in respect of the partnership, for its taxation year that ends in the particular year, if the partnership were a taxable Canadian corporation and its fiscal period were its taxation year, the portion of that amount that can reasonably be considered to be the taxpayer’s share thereof shall be added in computing the tax credit of the taxpayer under subsection (2) at the end of the particular year. Unpaid amounts (12) For the purposes of this section, a taxpayer’s expenditure that is unpaid on the day that is 180 days after the end of the taxation year in which the expenditure is otherwise incurred is deemed (a) not to have been incurred in the year; and (b) to be incurred at the time it is paid. Designation of jurisdiction (13) For the purposes of this section and Part XII.7, the following rules apply in relation to the definition designated jurisdiction in subsection (1): (a) if the Minister of the Environment determines that a jurisdiction within Canada or the United States has sufficient environmental laws and enforcement governing the permanent storage of captured carbon (i) the Minister of the Environment may designate the jurisdiction for the purposes of this section and Part XII.7, (ii) the designation under subparagraph (i) shall specify the time at and after which it is in effect, which time may, for greater certainty, precede the time at which the designation is made, and (iii) the Minister of the Environment shall publish on a website maintained by the Government of Canada the designation referred to in subparagraph (i); and (b) the provinces of British Columbia, Saskatchewan and Alberta are deemed to have been designated by the Minister of the Environment in accordance with this subsection. Revocation of designation (14) If a jurisdiction makes significant changes to its environmental laws or enforcement governing the permanent storage of captured carbon, and the Minister of the Environment determines that as a result of those changes a jurisdiction designated pursuant to subsection (13) has ceased to have sufficient environmental laws or enforcement governing the permanent storage of captured carbon, the following rules apply: (a) the Minister of the Environment may revoke the designation of the jurisdiction designated under subsection (13); (b) the revocation under paragraph (a) shall specify the time at and after which it is in effect, which time shall not begin sooner than 30 days after the revocation is made; and (c) the Minister of the Environment shall publish on a website maintained by the Government of Canada the revocation referred to in paragraph (a). Purpose (15) The purpose of this section and Part XII.7 is to encourage the investment of capital in the development and operation of carbon capture, transportation, utilization and storage capacity in Canada. Tax shelter investment (16) Subsections (2) and (3) do not apply in respect of a CCUS project if a property used in the project — or an interest in a person or partnership that has, directly or indirectly, an interest in, or for civil law, a right in, a property used in the project — is a tax shelter investment for the purpose of section 143.2. Late filing (17) The Minister may accept the late filing by a qualifying taxpayer of the prescribed form referred to in subsection (2) until one year after the filing-due date referred to in subsection (2), but no payment by the taxpayer is deemed to arise under that subsection until the form has been filed with the Minister. (2) Subsection (1) is deemed to have come into force on January 1, 2022, except that, before March 28, 2023, subsection 127.44(3) of the Act, as enacted by subsection (1), is to be read without reference to section 127.45 and clause 127.44(9)(b)(ii)(C) of the Act, as enacted by subsection (1), is to be read without the words “or a clean technology investment tax credit is claimed under section 127.45”. 36 (1) The Act is amended by adding the following after section 127.44, as enacted by subsection 35 (1): Definitions 127.45 (1) The following definitions apply in this section. clean technology investment tax credit  of a qualifying taxpayer for a taxation year means (a) the total of all amounts each of which is the specified percentage of the capital cost to the taxpayer of clean technology property acquired by the taxpayer in the year; and (b) the total of amounts required by subsection (8) to be added in computing the taxpayer’s clean technology investment tax credit at the end of the year. ( crédit d’impôt à l’investissement dans les technologies propres ) clean technology property  means property (a) situated in Canada (including property described in subparagraph (d)(v) or (xiv) of Class 43.1 in Schedule II to the Income Tax Regulations that is installed in the exclusive economic zone of Canada) and intended for use exclusively in Canada; (b) that has not been used, or acquired for use or lease, for any purpose whatever before it was acquired by the taxpayer; (c) that, if it is to be leased by the taxpayer to another person or partnership, is (i) leased to a qualifying taxpayer or a partnership all the members of which are taxable Canadian corporations, and (ii) leased in the ordinary course of carrying on a business in Canada by the taxpayer whose principal business is selling or servicing property of that type, or whose principal business is leasing property, lending money, purchasing conditional sales contracts, accounts receivable, bills of sale, chattel mortgages or hypothecary claims on movables, bills of exchange or other obligations representing all or part of the sale price of merchandise or services, or any combination thereof; and (d) that is (i) equipment used to generate electricity from solar, wind and water energy that is described in subparagraph (d)(ii), (iii.1), (v), (vi) or (xiv) of Class 43.1 in Schedule II to the Income Tax Regulations , (ii) stationary electricity storage equipment that is described in subparagraph (d)(xviii) or (xix) of Class 43.1 in Schedule II to the Income Tax Regulations , but excluding equipment that uses any fossil fuel in operation, (iii) active solar heating equipment, air-source heat pumps and ground-source heat pumps that are described in subparagraph (d)(i) of Class 43.1 in Schedule II to the Income Tax Regulations , (iv) a non-road zero-emission vehicle described in Class 56 in Schedule II to the Income Tax Regulations and charging or refuelling equipment described in subparagraph (d)(xxi) of Class 43.1 in Schedule II to the Income Tax Regulations or subparagraph (b)(ii) of Class 43.2 in Schedule II to the Income Tax Regulations that in each case is used primarily for such vehicles, (v) equipment used exclusively for the purpose of generating electrical energy or heat energy, or a combination of electrical energy and heat energy, solely from geothermal energy, that is described in subparagraph (d)(vii) of Class 43.1 in Schedule II to the Income Tax Regulations , but excluding any equipment that is part of a system that extracts fossil fuel for sale, (vi) concentrated solar energy equipment, or (vii) a small modular nuclear reactor. ( bien de technologie propre ) concentrated solar energy equipment  means equipment, other than excluded equipment, used all or substantially all to generate heat or electricity, or a combination of heat and electricity, exclusively from concentrated sunlight, including (a) reflectors and related solar tracking systems; (b) thermal receivers; (c) thermal energy storage equipment; (d) electrical generating equipment; (e) heat transfer fluid systems; (f) electrical energy storage equipment; (g) transmission equipment; (h) equipment for the distribution of heat energy; (i) structures whose sole function is to support or house concentrated solar energy equipment; and (j) ancillary instrumentation and controls including weather monitoring systems. ( matériel d’énergie solaire concentrée ) excluded equipment  means  (a) auxiliary heating or electrical generating equipment that uses any fossil fuel; (b) buildings or structures other than those structures described in paragraph (i) of the definition of concentrated solar energy equipment ; (c) distribution equipment; (d) property included in Class 10 in Schedule II to the Income Tax Regulations ; and (e) property that would be included in Class 17 in Schedule II to the Income Tax Regulations if that Class were read without reference to its paragraph (a.1). ( matériel non admissible ) government assistance  has the meaning assigned by subsection 127(9). ( aide gouvernementale ) non-clean technology use  means a use of a particular property at a particular time that would, if the property were acquired at that time, result in the property ceasing to be a clean technology property, determined without reference to paragraph (b) of the definition clean technology property in this subsection. ( utilisation non concernée par la technologie propre ) non-government assistance  has the meaning assigned by subsection 127(9). ( aide non gouvernementale ) qualifying taxpayer  means a taxable Canadian corporation or a mutual fund trust that is a real estate investment trust (as defined in subsection 122.1(1)). ( contribuable admissible ) small modular nuclear reactor  means equipment that is used all or substantially all to generate electrical energy or heat energy, or a combination of electrical energy and heat energy, from nuclear fission — including reactors, reactor vessels, reactor control rods, moderators, cooling systems, control systems, nuclear fission fuel handling equipment, containment structures, electrical generating equipment and equipment for the distribution of heat energy — that (a) is part of a system that has a gross rated generating capacity not exceeding 300 megawatts electric, or an energy balance equivalent gross rated generating capacity of electricity or heat equivalent of 1,000 megawatts thermal; (b) is part of a system all or substantially all of which is comprised of modules that are factory-assembled and transported pre-built to the installation site; and (c) is not (i) nuclear fission fuel, (ii) equipment for nuclear waste disposal and nuclear waste disposal sites, (iii) transmission equipment, (iv) distribution equipment, (v) property included in Class 10 in Schedule II to the Income Tax Regulations , or (vi) property that would be included in Class 17 in Schedule II to the Income Tax Regulations if that Class were read without reference to its paragraph (a.1). ( petit réacteur modulaire nucléaire ) specified percentage  means, in respect of a clean technology property of the taxpayer that is acquired (a) before March 28, 2023, determined without reference to subsection (4), nil; (b) on or after March 28, 2023 and before January 1, 2034, 30%; (c) after December 31, 2033 and before January 1, 2035, 15%; and (d) after December 31, 2034, nil. ( pourcentage déterminé ) Clean technology investment tax credit (2) If a qualifying taxpayer files with its return of income for a taxation year a prescribed form containing prescribed information, the taxpayer is deemed to have paid on its balance-due day for the year an amount on account of the taxpayer’s tax payable under this Part for the year equal to the taxpayer’s clean technology investment tax credit for the year. Time limit for application (3) A payment on account of tax payable shall not be deemed to be paid under subsection (2) if the taxpayer does not file with the Minister a prescribed form containing prescribed information in respect of the amount on or before the day that is one year after the taxpayer’s filing-due date for the year. Time of acquisition (4) For the purpose of this section, clean technology property is deemed not to have been acquired by a taxpayer before the property is considered to have become available for use by the taxpayer, determined without reference to paragraphs 13(27)(c) and (28)(d). Special rules — adjustments (5) For the purpose of the definition clean technology investment tax credit in subsection (1), the capital cost of clean technology property shall (a) not include any amount in respect of a capital property (i) for which an amount was previously deducted under this section by any person, (ii) in respect of which a CCUS tax credit was deducted under section 127.44 by any person, or (iii) that has, by virtue of section 21, been added to the cost of a property; (b) be determined without reference to subsections 13(7.1) and (7.4), less the amount of any government assistance or non-government assistance that can reasonably be considered to be in respect of the property and that, at the time of the filing of the taxpayer’s return of income under this Part for the taxation year in which the property was acquired by the taxpayer or partnership, the taxpayer or partnership has received, is entitled to receive or can reasonably be expected to receive; and (c) be determined with reference to subsections 127(11.6) to (11.8) in respect of an expenditure or cost to a taxpayer except that (i) the reference in subsection 127(11.6) to subsection 127(11.5) is to be read as a reference to section 127.45, (ii) the reference in subsection 127(11.6) to subsection 127(26) is to be read as a reference to subsection 127.45(9), and (iii) the term “qualified expenditure” is to be read as an expenditure eligible to be added to the capital cost of a clean technology property. Deemed deduction (6) For the purposes of this section, paragraph 12(1)(t), subsection 13(7.1), the description of I in the definition undepreciated capital cost in subsection 13(21) and subsection 53(2), the amount deemed under subsection (2) to have been paid by a taxpayer for a taxation year is deemed to have been deducted from the taxpayer’s tax otherwise payable under this Part for the year. Repayment of assistance (7) Where a taxpayer has, in a particular taxation year, repaid (or has not received and can no longer reasonably be expected to receive) an amount of government assistance or non-government assistance that was applied to reduce the cost of a property under paragraph (5)(b) for a preceding taxation year, the amount repaid (or no longer expected to be received) is to be added to the cost to the taxpayer of a property acquired in the particular year for the purpose of determining the taxpayer’s clean technology investment tax credit for the year. Partnerships (8) Subject to section 127.47, where, in a particular taxation year of a taxpayer who is a member of a partnership, an amount would be determined under subsection (2) in respect of the partnership, for its taxation year that ends in the particular year, if the partnership were a taxable Canadian corporation and its fiscal period were its taxation year, the portion of that amount that can reasonably be considered to be the taxpayer’s share thereof shall be added in computing the clean technology investment tax credit of the taxpayer at the end of the particular year. Unpaid amounts (9) For the purposes of this section, where any part of the capital cost of a taxpayer’s clean technology property is unpaid on the day that is 180 days after the end of the taxation year in which a deduction in respect of a clean technology investment tax credit would otherwise be available in respect of the property, such amount is to be (a) excluded from the capital cost of such property in the year; and (b) added to the capital cost of such property at the time it is paid. Tax shelter investment (10) Subsection (2) does not apply if a clean technology property — or an interest in a person or partnership that has, directly or indirectly, an interest in, or for civil law, a right in, such property — is a tax shelter investment for the purpose of section 143.2. Recapture — conditions for application (11) Subsection (12) applies in a taxation year if (a) a taxpayer acquired a clean technology property in the year or any of the preceding 10 calendar years; (b) the taxpayer became entitled to a clean technology investment tax credit in respect of the capital cost, or a portion of the capital cost, of the particular property; and (c) in the year, the particular property (or another property that incorporates the particular property) is converted to a non-clean technology use, is exported from Canada or is disposed of without having been previously exported or converted to a non-clean technology use. Recapture of credit (12) If this subsection applies, there shall be added to the taxpayer’s tax otherwise payable under this Part for the year the lesser of (a) the amount of the taxpayer’s clean technology investment tax credit in respect of the particular property, and (b) the amount determined by the formula A × (B ÷ C) where A is the amount of the taxpayer’s clean technology investment tax credit in respect of the particular property, B is (i) in the case where the particular property is disposed of to a person who deals at arm’s length with the taxpayer, the proceeds of disposition of the property, or (ii) in the case where the particular property is disposed of to a person who does not deal at arm’s length with the taxpayer, is converted to a non-clean technology use or is exported from Canada, the fair market value of the property, and C is the capital cost of the particular property on which the clean technology investment tax credit was deducted. Certain non-arm’s length transfers (13) Subsections (11) and (12) do not apply to a taxpayer that is a taxable Canadian corporation (in this subsection referred to as the “transferor”) that disposes of a property to another taxable Canadian corporation (in this subsection referred to as the “purchaser”) related to the transferor if the purchaser acquired the property in circumstances where the property would be clean technology property to the purchaser but for paragraph (b) of that definition. Certain non-arm’s length transfers — recapture deferred (14) If subsection (13) applies, subsection 127(34) applies with such modifications as the circumstances require, including that the reference to subsection 127(33) be read as a reference to subsection 127.45(13). Recapture event reporting requirement (15) If subsection (11) or (13) applies to a taxpayer for a particular year, the taxpayer shall notify the Minister in prescribed form and manner on or before the taxpayer’s filing-due date for the year. Recapture of credit for partnerships (16) Subsection (17) applies in a fiscal period of a partnership if (a) the partnership acquired a particular clean technology property in the fiscal period or in any of the 10 preceding calendar years; (b) the cost, or a portion of the cost, of the particular property is included in an amount, a percentage of which can reasonably be considered to have been included in computing the amount determined under subsection (8) in respect of the partnership at the end of a fiscal period; and (c) in the fiscal period, the particular property (or another property that incorporates the particular property) is converted to a non-clean technology use, is exported from Canada or is disposed of without having been previously exported or converted to a non-clean technology use. Addition to tax (17) If this subsection applies to a fiscal period of a partnership, where a taxpayer is a member of the partnership during the fiscal period, there shall be added to the taxpayer’s tax otherwise payable under this Part for the taxpayer’s taxation year in which the fiscal period ends the amount that can reasonably be considered to be the taxpayer’s share of the amount, if any, equal to the lesser of (a) the amount that can reasonably be considered to have been included in respect of the particular property in computing the amount determined under subsection (8) in respect of the partnership, and (b) the percentage described in paragraph (16)(b) of (i) where the particular property (or the other property) is disposed of to a person who deals at arm’s length with the partnership, the proceeds of disposition of the property, and (ii) in any other case, the fair market value of the particular property (or the other property) at the time of the conversion, export or disposition. Information return — partnerships (18) If subsections (16) and (17) apply with respect to the property of a partnership for a particular fiscal period, the partnership shall notify the Minister in prescribed form and manner on or before the day when a return is required by section 229 of the Income Tax Regulations to be filed in respect of the period. Clean technology investment tax credit — purpose (19) The purpose of this section is to encourage the investment of capital in the adoption and operation of clean technology property in Canada. Authority of the Minister of Natural Resources (20) For the purpose of determining whether a property is a clean technology property, any technical guide, published by the Department of Natural Resources and as amended from time to time, is to apply conclusively with respect to engineering and scientific matters. (2) Subsection (1) is deemed to have come into force on March 28, 2023. 37 (1) The Act is amended by adding the following after section 127.45, as enacted by subsection 36 (1): Definitions 127.46 (1) The following definitions apply in this section. apprenticeship requirements  means the requirements set out in subsection (5). ( exigences à l’égard d’apprentis ) benefits  means vacation, pension, health and welfare benefits required to be provided by employers to or for employees under an eligible collective agreement. ( avantages sociaux ) covered worker  means an individual (other than a trust) (a) who is engaged in the preparation or installation of specified property at a designated work site as an employee of an incentive claimant or of another person or partnership; (b) whose work or duties in respect of the designated work site are primarily manual or physical in nature; and (c) who is not (i) an administrative, clerical or executive employee, or (ii) a business visitor to Canada as described in section 187 of the Immigration and Refugee Protection Regulations . ( travailleur visé ) designated work site  in a taxation year of an incentive claimant means a work site where specified property of an incentive claimant is located during the year and includes the site of a CCUS project (as defined in section 127.44) of the incentive claimant. ( chantier désigné ) eligible collective agreement  means (a) in Quebec, (i) a collective agreement negotiated in accordance with applicable provincial law, or (ii) a prescribed agreement; and (b) in any other case, (i) the most recent multi-employer collective bargaining agreement negotiated with a trade union that is an affiliate of Canada’s Building Trades Unions for a given trade in a region or province, (ii) a project labour agreement established with a trade union in accordance with applicable provincial law that covers the work associated with the investments eligible for specified tax credits and that provides for wages and benefits for covered workers in a given trade that are at least equal to the regular wages (without taking into account overtime) and benefits provided for covered workers in an agreement described in subparagraph (i), or (iii) a prescribed agreement. ( convention collective admissible )  incentive claimant  means a person that, or a partnership at least one member of which, plans to claim or has claimed a specified tax credit for a taxation year. ( demandeur d’incitatif ) installation taxation year , in respect of a specified tax credit, means a taxation year during which preparation or installation of specified property occurs. ( année d’imposition de l’installation ) prevailing wage requirements  means the requirements set out in subsection (3). ( exigences relatives au salaire prévalant ) Red Seal trade  means, for a province using the Red Seal Program for a particular trade, the relevant Red Seal trade managed by the Canadian Council of Directors of Apprenticeship and, in any other case, an equivalent provincially registered trade. ( métier désigné Sceau rouge ) Red Seal worker  means a covered worker whose duties are, or are equivalent to, those duties normally performed by workers in a Red Seal trade. ( travailleur Sceau rouge ) reduced tax credit rate  means the regular tax credit rate minus 10 percentage points. ( taux du crédit d’impôt réduit ) regular tax credit rate  means the specified percentage (as defined in subsections 127.44(1) and 127.45(1), as the case may be). ( taux du crédit d’impôt régulier ) specified property  means property all or a portion of the cost of which qualifies for a specified tax credit. ( bien déterminé ) specified tax credit  means the CCUS tax credit under section 127.44 and the clean technology investment tax credit under section 127.45. ( crédit d’impôt déterminé ) Reduced or regular rate (2) Despite sections 127.44 and 127.45, the applicable rate for each specified tax credit of an incentive claimant is the reduced tax credit rate unless the incentive claimant elects in prescribed form and manner to meet the prevailing wage requirements under subsection (3) and the apprenticeship requirements under subsection (5) for each installation taxation year in respect of the specified tax credit. Prevailing wage requirements (3) For the purposes of this section, the prevailing wage requirements for an incentive claimant for an installation taxation year are (a) if prescribed circumstances exist, prescribed conditions; and (b) in any other case, the following conditions: (i) each covered worker at a designated work site of an incentive claimant must be compensated for their work on the preparation or installation of specified property (A) in accordance with the terms of an eligible collective agreement that applies to the worker, or (B) in an amount that is at least equal to the amount of the regular wages (without taking into account overtime) and benefits as specified in the eligible collective agreement that most closely aligns with the covered worker’s experience level, tasks and location, calculated on a per-hour or similar basis; (ii) the incentive claimant attests, in prescribed form and manner, that it has met the prevailing wage requirement in subparagraph (i) for its own employees who are covered workers, if any, and that it has taken reasonable steps to ensure that any covered workers employed by any other person or partnership at the designated work site are compensated in accordance with subparagraph (i); and (iii) it has communicated, either in a poster or notice, in a manner readily visible to and accessible by covered workers at the designated work site or by electronic means, a notice confirming that the work site is a work site subject to prevailing wage requirements in relation to covered workers, including a plain language explanation of what that means for workers and information regarding how to report failures to pay prevailing wages to the Minister. Indexation of prevailing wages (4) Where an eligible collective agreement that is used to calculate the prevailing wage requirement under subparagraph (3)(b)(i) is expired, then the amounts of wages and benefits stipulated in the agreement shall be adjusted by the average Consumer Price Index in the manner set out in section 117.1 for each calendar year that begins after the expiration of the eligible collective agreement. Apprenticeship requirements (5) For the purposes of this section, the apprenticeship requirements for an incentive claimant for an installation taxation year are that (a) subject to paragraph (b), the incentive claimant makes reasonable efforts to ensure that apprentices registered in a Red Seal trade work at least 10% of the total hours that are worked during the year by Red Seal workers at a designated work site of the incentive claimant on the preparation or installation of specified property; (b) if an applicable law or collective agreement that specifies a maximum ratio of apprentices to journeypersons, or otherwise restricts the number of apprentices employed at a designated work site, prevents the condition in paragraph (a) from being met, the incentive claimant makes reasonable efforts to ensure that the highest possible percentage of the total labour hours, performed during the year by Red Seal workers on the preparation or installation of specified property, is performed by apprentices registered in a Red Seal trade while respecting the applicable labour law or collective agreement; and (c) the incentive claimant attests in prescribed form and manner that it has met the apprenticeship requirements in paragraph (a) or (b) in respect of covered workers at the designated work site. Addition to tax — wage requirement (6) Unless subsection (9) applies, if an incentive claimant claims a specified tax credit at a regular tax credit rate in a taxation year but does not meet the prevailing wage requirements in respect of a covered worker for one or more days in an installation taxation year in respect of that specified tax credit, there shall be added to the tax payable under this Part for the installation taxation year by the incentive claimant an amount equal to $20 for each day in the installation taxation year on which the covered worker was not paid the prevailing wage. Addition to tax — apprenticeship requirement (7) Unless subsection (9) applies, if an incentive claimant claims a specified tax credit at a regular tax credit rate in a taxation year in respect of a designated work site, but less than 10% of the total hours that are worked during an installation taxation year in respect of that specified tax credit at the designated work site on the preparation or installation of specified property are worked by apprentices registered in a Red Seal trade, there shall be added to the tax payable under this Part for the installation taxation year by the incentive claimant the amount determined by the formula $50 × (A − B) where A is the total number of hours of labour required to be performed by apprentices registered in a Red Seal trade for the installation taxation year at the designated work site of the incentive claimant as described in paragraph (5)(a) or (b), as applicable, in each case read without reference to the words “the incentive claimant makes reasonable efforts to ensure that”; and B is the total number of actual hours of labour performed by apprentices registered in a Red Seal trade for the installation taxation year at the designated work site of the incentive claimant on the preparation or installation of specified property plus any other hours of labour for which the incentive claimant has met the apprenticeship requirements in paragraph (5)(a) or (b), as applicable. Indexation (8) The dollar amounts in subsections (6) and (7) shall be adjusted for inflation in each calendar year commencing after 2023 in the manner set out in section 117.1. Gross negligence (9) If an incentive claimant has claimed a specified tax credit at the regular tax credit rate in a taxation year (referred to in this subsection as the “claim year”) but has failed to meet the prevailing wage requirements or the apprenticeship requirements for an installation taxation year in respect of that specified tax credit and the Minister determines that the incentive claimant knowingly or in circumstances amounting to gross negligence failed to meet those requirements, then (a) the incentive claimant is not entitled to the regular tax credit rate, and is entitled to not more than the reduced tax credit rate, for the specified tax credit; and (b) the incentive claimant is liable to a penalty for the claim year equal to the amount determined by the formula 50% × (A − B) where A is the amount of the specified tax credit claimed by the incentive claimant at the regular tax credit rate for the claim year, and B is the amount that the incentive claimant would have been entitled to claim as a specified tax credit at the reduced tax credit rate for the claim year. CCUS refurbishment credit (10) Subsection (9) does not apply in respect of a CCUS refurbishment tax credit. Corrective measures — prevailing wage requirement (11) Unless subsection (9) applies, if an incentive claimant receives a notification from the Minister specifying that the incentive claimant did not meet the prevailing wage requirements for a designated work site for a taxation year, the incentive claimant may within one year after receipt of the notification, or such longer period as is acceptable to the Minister, cause each covered worker to be paid the top-up amount determined under subsection (12). Top-up amount (12) For each covered worker in respect of an incentive claimant, the top-up amount referred to in subsection (11) for a taxation year shall equal or exceed the amount determined by the formula A − B + C where A is the amount that the covered worker would have received or benefited from, in respect of the worker’s employment at the designated work site during the taxation year, had the covered worker been paid in accordance with the prevailing wage requirements in paragraph (3)(a) or subparagraph (3)(b)(i), as applicable; B is the amount that the worker actually received or benefited from, in respect of the worker’s employment at the designated work site during the taxation year; and C is interest on the difference between the description of A and the description of B, calculated from the beginning of the taxation year to the time of payment at the prescribed rate specified in paragraph 4301(a) of the Income Tax Regulations . Top-up payment not made (13) For any covered worker in respect of whom a top-up amount is not paid under subsection (11), the incentive claimant shall pay to the Receiver General, as a penalty under this Act, 120% of the amount determined by the formula in subsection (12). Tax treatment of top-up amount (14) A top-up amount that is paid to a covered worker (a) is deemed to be (i) salary and wages of the worker for the year in which it is received, and (ii) deductible in computing income by the payor for the year in which it is paid; and (b) does not qualify for any specified tax credit. Exception (15) This section does not apply to a specified tax credit claimed for the acquisition of off-road zero emission vehicles or to the acquisition and installation of low carbon heat equipment. Deemed reasonable efforts (16) For the purposes of this section, an incentive claimant is deemed to have satisfied the requirement in paragraph (5)(a) or (b), as the case may be, in respect of hours of labour at a designated work site for an installation taxation year if the following conditions are met: (a) at least every four months, the incentive claimant (i) posts a bona fide job advertisement, seeking sufficient apprentices to perform those hours of labour in respect of the designated work site, that (A) includes a commitment to facilitate participation of apprentices in a Red Seal trade program and a statement that the job opportunity is open to both existing employees and new hires, and (B) is open and readily accessible on the Job Bank website of the Government of Canada and at least two other websites either (I) on a continuous basis throughout the year, or (II) for at least 30 days from the time of posting, (ii) communicates with a trade union (which, if the designated work site is in Quebec, is a trade union recognized under applicable provincial law and, if the designated work site is outside of Quebec, is an affiliate of Canada’s Building Trades Unions) and at least one secondary school or post-secondary educational institution for the purpose of facilitating the hiring of the apprentice positions described in the job advertisement, and (iii) receives from the trade union confirmation in writing that the trade union has provided as many apprentices as reasonably possible for work at the designated work site during the installation year, unless the trade union fails to respond within five business days of a request; (b) the incentive claimant reviews and duly considers all applications received in response to the advertisement for apprenticeship opportunities that are offered directly by the incentive claimant and takes reasonable steps to ensure that other applications are reviewed and duly considered; and (c) the incentive claimant attests in prescribed form and manner that it has complied with paragraphs (a) and (b). Partnerships (17) If subsection (6), (7), (9) or (13) applies to an incentive claimant that is a partnership (a) any member of the partnership may elect to pay the amount of the relevant tax or penalty liability on behalf of the partnership; (b) if no election has been made under paragraph (a), the portion of the relevant tax or penalty liability that can reasonably be considered to be each member’s share thereof is payable by each member; and (c) each member of the partnership is jointly and severally, or for civil law, solidarily, liable for any portion of the amount of the relevant tax or penalty liability that is not paid in accordance with paragraph (a) or allocated to and payable by a member under paragraph (b). (2) Subsection (1) applies in respect of specified property prepared or installed on or after November 28, 2023. 38 (1) The Act is amended by adding the following after section 127.46, as enacted by subsection 37 (1): Definitions 127.47 (1) The following definitions apply in this section. at-risk amount  has the meaning assigned by subsection 96(2.2). ( fraction à risques ) clean economy allocation provision  means (a) subsection 127.44(11); or (b) subsection 127.45(8). ( disposition d’allocation pour l’économie propre ) clean economy expenditure  means (a) a qualified CCUS expenditure as determined under section 127.44; or (b) the capital cost of clean technology property as determined under section 127.45. ( dépense pour l’économie propre ) clean economy provision  means (a) this section; (b) section 127.44 and Part XII.7; (c) section 127.45; or (d) section 127.46. ( disposition pour l’économie propre ) clean economy tax credit  means (a) a CCUS tax credit (as defined in subsection 127.44(1)); or (b) a clean technology investment tax credit (as defined in subsection 127.45(1)). ( crédit d’impôt pour l’économie propre ) limited partner  has the meaning assigned by subsection 96(2.4) if that subsection were read without reference to “if the member’s partnership interest is not an exempt interest (within the meaning assigned by subsection (2.5)) at that time and”. ( commanditaire ) Credits in unreasonable proportions (2) If the members of a partnership agree to share the amount of a clean economy tax credit of the partnership and the share of any member of that amount is not reasonable in the circumstances having regard to the capital invested in or work performed for the partnership by the members of the partnership or such other factors as may be relevant, that share shall, notwithstanding any agreement, be deemed to be the amount that is reasonable in the circumstances. Limited partners (3) Notwithstanding subsection (2), if a taxpayer is a limited partner of a partnership at the end of a fiscal period of the partnership, the total of all clean economy tax credits allocated to the taxpayer by the partnership in respect of that fiscal period shall not exceed the taxpayer’s at-risk amount in respect of the partnership at the end of that fiscal period. Apportionment rule (4) The amount required by any clean economy allocation provision to be added in computing a particular clean economy tax credit of a taxpayer in respect of a partnership for the taxation year in which the partnership’s fiscal period ends is deemed to be the portion of the amount otherwise determined under this section in respect of the taxpayer that is reasonably attributable to each particular clean economy tax credit. Assistance received by member of partnership (5) For the purposes of computing a clean economy tax credit, if, at a particular time, a taxpayer that is a member of a partnership has received, is entitled to receive or can reasonably be expected to receive government assistance or non-government assistance (as defined in subsection 127(9)), the amount of that assistance that may reasonably be considered to be in respect of a clean economy expenditure of the partnership shall be deemed to have been received at that time by the partnership as government assistance or non-government assistance, as the case may be, in respect of the expenditure. Credit received by member of partnership (6) For the purposes of subsection 13(7.1), if, pursuant to an allocation from a partnership under a clean economy allocation provision, an amount is added in computing a clean economy tax credit of a taxpayer at the end of the taxpayer’s taxation year, the amount shall be deemed to have been received by the partnership at the end of its fiscal period in respect of which the allocation was made as assistance from a government for the acquisition of depreciable property. Tiered partnerships (7) For the purposes of each clean economy provision, a person or partnership that is (or is deemed by this subsection to be) a member of a particular partnership that is a member of another partnership is deemed to be a member of the other partnership. (2) Subsection (1) is deemed to have come into force on January 1, 2022, except that (a) before March 28, 2023, the definitions clean economy allocation provision , clean economy expenditure , clean economy provision and clean economy tax credit in subsection 127.47(1) of the Act, as enacted by subsection (1), are to be read as follows: clean economy allocation provision  means subsection 127.44(11). ( disposition d’allocation pour l’économie propre ) clean economy expenditure  means a qualified CCUS expenditure as determined under section 127.44. ( dépense pour l’économie propre ) clean economy provision  means (a) this section; or (b) section 127.44 and Part XII.7. ( disposition pour l’économie propre ) clean economy tax credit  means a CCUS tax credit (as defined in subsection 127.44(1)). ( crédit d’impôt pour l’économie propre ) (b) for the period that begins on March 28, 2023 and ends on November 27, 2023, the definition clean economy provision in subsection 127.47(1) of the Act, as enacted by subsection (1), is to be read as follows: clean economy provision  means (a) this section; (b) section 127.44 and Part XII.7; or (c) section 127.45. ( disposition pour l’économie propre ) 39 (1) Subsection 128(2) of the Act is amended by adding the following after paragraph (d.2): (d.3) where, by reason of paragraph (d), a taxation year of the individual is not a calendar year, (i) for the purposes of the application of subsection 146.6(1) and the definition excess FHSA amount in subsection 207.01(1) to each taxation year ending in the calendar year, references to “taxation year” are to be read as references to “calendar year”, and (ii) for the purposes of the application of subsection 146.6(5) to each taxation year ending in the calendar year, the description of A in paragraph 146.6(5)(a) is to be read as follows: “A is the total of all amounts each of which is the taxpayer’s annual FHSA limit for the calendar year that includes the taxation year and each preceding calendar year, and” (2) Subsection (1) is deemed to have come into force on April 1, 2023. 40 (1) Paragraph 129(1)(b) of the Act is replaced by the following: (b) shall, with all due dispatch, make the dividend refund after sending the notice of assessment if an application for it has been made in writing by the corporation within the period within which the Minister would be allowed (i) under subsection 152(4) to assess tax payable under this Part by the corporation for the year if that subsection were read without reference to paragraph 152(4)(a), or (ii) under subsection 152(4.31) to assess tax payable under Part IV by the corporation for the year if the Minister has assessed the corporation’s tax payable under that Part for the year under subsection 152(4.31). (2) The definition eligible portion in subsection 129(4) of the Act is replaced by the following: eligible portion  of a corporation’s taxable capital gains or allowable capital losses for a taxation year is the total of all amounts each of which is the portion of a taxable capital gain or an allowable capital loss, as the case may be, of the corporation for the year from a disposition of a property that, except where the property was a designated property (within the meaning assigned by subsection 89(1)), cannot reasonably be regarded as having accrued while the property, or a property for which it was substituted, was property of a corporation other than a Canadian-controlled private corporation, a substantive CCPC, an investment corporation, a mortgage investment corporation or a mutual fund corporation.  ( fraction admissible ) (3) The portion of paragraph (a) of the definition non-eligible refundable dividend tax on hand in subsection 129(4) of the Act before subparagraph (i) is replaced by the following: (a) if the corporation was a Canadian-controlled private corporation throughout the year or a substantive CCPC at any time in the year, the least of (4) Subsections (1) to (3) apply to taxation years that end on or after April 7, 2022. 41 (1) Paragraph 135.2(4)(f) and the portion of paragraph 135.2(4)(g) of the Act before subparagraph (ii) are replaced by the following: (f) any security (in this paragraph and paragraph (g), as defined in subsection 122.1(1)) of the trust that is held by a trust governed by a deferred profit sharing plan, FHSA, RDSP, RESP, RRIF, RRSP or TFSA (referred to in this paragraph and paragraph (g) as the “registered plan trust”) is deemed not to be a qualified investment for the registered plan trust; (g) if a registered plan trust governed by a TFSA or FHSA acquires at any time a security of the trust, Part XI.01 applies in respect of the security as though the acquisition is an advantage (i) in relation to the TFSA or the FHSA, as the case may be, that is extended at that time to the controlling individual of the registered plan trust, and (2) Subsection (1) is deemed to have come into force on August 4, 2023. 42 (1) Paragraph (a) of the definition credit union in subsection 137(6) of the Act is replaced by the following: (a) it is (i) a federal credit union, or (ii) a provider of financial services that is organized on cooperative principles and incorporated by or under an Act of the legislature of a province, (2) Subparagraph (b)(i) of the definition credit union in subsection 137(6) of the Act is replaced by the following: (i) incorporated as credit unions or cooperative credit societies, each of which is described in paragraph (a), or all or substantially all of the members of which were credit unions, cooperatives or a combination of those entities, (3) Paragraph (b) of the definition member in subsection 137(6) of the Act is replaced by the following: (b) a registered retirement savings plan, a registered retirement income fund, a TFSA, a FHSA or a registered education savings plan, the annuitant, holder or subscriber under which is a person described in paragraph (a). ( membre ) (4) Subsections (1) and (2) are deemed to have come into force on January 1, 2016. (5) Subsection (3) is deemed to have come into force on April 1, 2023. 43 (1) Paragraph (b) of the definition excluded premium in subsection 146.01(1) of the Act is replaced by the following: (b) was an amount transferred directly from a FHSA, registered retirement savings plan, registered pension plan, registered retirement income fund or deferred profit sharing plan, (2) Subsection (1) is deemed to have come into force on November 28, 2023. 44 (1) Paragraph (c) of the definition excluded premium in subsection 146.02(1) of the Act is replaced by the following: (c) was an amount transferred directly from a FHSA, registered retirement savings plan, registered pension plan, registered retirement income fund or deferred profit sharing plan; or (2) Subsection (1) is deemed to have come into force on November 28, 2023. 45 (1) The portion of paragraph (c) of the definition qualifying person in subsection 146.4(1) of the Act before subparagraph (ii) is replaced by the following: (c) an individual who is a qualifying family member in relation to the beneficiary if (i) at or before that time, the beneficiary has attained the age of majority and, other than for the purposes of paragraph (4)(b.1), is not a beneficiary under a disability savings plan, (2) The portion of subsection 146.4(1.5) of the Act before paragraph (a) is replaced by the following: Beneficiary replacing holder (1.5) Any holder of a disability savings plan who was a qualifying person in relation to the beneficiary under the plan at the time the plan (or another registered disability savings plan of the beneficiary) was entered into solely because of paragraph (c) of the definition qualifying person in subsection (1), or who was a successor holder because of paragraph (4)(b.1), ceases to be a holder of the plan and the beneficiary becomes the holder of the plan if (3) The portion of subsection 146.4(1.6) of the Act before paragraph (a) is replaced by the following: Entity replacing holder (1.6) If an entity described in subparagraph (a)(ii) or (iii) of the definition qualifying person in subsection (1) is appointed in respect of a beneficiary of a disability savings plan and a holder of the plan was a qualifying person in relation to the beneficiary at the time the plan (or another registered disability savings plan of the beneficiary) was entered into solely because of paragraph (c) of that definition, or was a successor holder because of paragraph (4)(b.1), (4) Subsection 146.4(1.7) of the Act is replaced by the following: Rules applicable in case of dispute (1.7) If a dispute arises as a result of an issuer’s acceptance of a qualifying family member who was a qualifying person in relation to the beneficiary at the time the plan (or another registered disability savings plan of the beneficiary) was entered into solely because of paragraph (c) of the definition qualifying person in subsection (1), or who was a successor holder because of paragraph (4)(b.1), as a holder of a disability savings plan, from the time the dispute arises until the time that the dispute is resolved or an entity becomes the holder of the plan under subsection (1.5) or (1.6), the holder of the plan shall use their best efforts to avoid any reduction in the fair market value of the property held by the plan trust, having regard to the reasonable needs of the beneficiary under the plan. (5) Subparagraph 146.4(4)(b)(iv) of the Act is replaced by the following: (iv) a qualifying person (other than a person described in paragraph (c) of the definition qualifying person in subsection (1)) in relation to the beneficiary at the time the rights are acquired, or (6) Subsection 146.4(4) of the Act is amended by adding the following after paragraph (b): (b.1) before 2027, as a consequence of the death of a qualifying family member who was the remaining holder of the plan immediately before death, the plan may allow one qualifying family member — in respect of which the conditions set out in paragraph (c) of the definition qualifying person in subsection (1) are met — to acquire rights as a successor of the holder of the plan; (7) The portion of paragraph 146.4(13)(e) of the Act before subparagraph (i) is replaced by the following: (e) if the issuer enters into the plan with a qualifying family member who was a qualifying person in relation to the beneficiary at the time the plan (or another registered disability savings plan of the beneficiary) was entered into solely because of paragraph (c) of the definition qualifying person in subsection (1), or who was a successor holder because of paragraph (4)(b.1), (8) Subsection 146.4(14) of the Act is replaced by the following: Issuer’s liability (14) If, after reasonable inquiry, an issuer of a disability savings plan is of the opinion that an individual’s contractual competence to enter into a disability savings plan is in doubt, no action lies against the issuer for (a) entering into a plan, under which the individual is the beneficiary, with a qualifying family member who was a qualifying person in relation to the beneficiary at the time the plan (or another registered disability savings plan of the beneficiary) was entered into solely because of paragraph (c) of the definition qualifying person in subsection (1); or (b) allowing a qualifying family member to acquire rights as a successor of the holder of the plan under paragraph (4)(b.1). 46 (1) The definition survivor in subsection 146.6(1) of the Act is replaced by the following: survivor  of a holder means another individual who is, immediately before the holder’s death, a spouse or common-law partner of the holder.‍ ( survivant ) (2) The definition bénéficiaire in subsection 146.6(1) of the French version of the Act is replaced by the following: bénéficiaire Relativement à un CELIAPP, s’entend d’un particulier (y compris une succession) ou d’un donataire reconnu qui a droit à une distribution du CELIAPP après le décès du titulaire du CELIAPP. ( beneficiary ) (3) Paragraph (b) of the definition annual FHSA limit in subsection 146.6(1) of the Act is replaced by the following: (b) the amount determined by the formula $8,000 + D − (E − F) where D is the amount of the FHSA carryforward for the taxation year, E is the taxpayer’s net RRSP-to-FHSA transfer amount at the end of the taxation year, and F is the total of all amounts, each of which is an amount determined in respect of each preceding taxation year that is (i) if the taxpayer had not started their maximum participation period in the year, nil, or (ii) in any other case, the lesser of (A) the amount determined by the formula G − H where G is the amount determined for E in the year, and H is the amount determined for F in the year, and (B) $8,000 plus the amount of the FHSA carryforward for the year, and (4) The description of B in paragraph (b) of the definition FHSA carryforward in subsection 146.6(1) of the Act is replaced by the following: B is the amount determined in paragraph (a) of the definition annual FHSA limit for the preceding taxation year plus the total of all contributions made to a FHSA in the preceding taxation year by the taxpayer after the taxpayer’s first qualifying withdrawal from a FHSA, and (5) Subsection 146.6(1) of the Act is amended by adding the following in alphabetical order: net RRSP-to-FHSA transfer amount  of a holder at a particular time means the amount by which‍ (a) the total of all amounts transferred under paragraph 146(16)(a.2), at or before that time, to a FHSA of the holder exceeds (b) the total of all amounts designated by the holder under paragraph (a) of the definition designated amount in subsection 207.01(1) at or before that time. ( montant net de transfert de REER à CELIAPP ) (6) Section 146.6 of the Act is amended by adding the following after subsection (3): Amount credited to a deposit (3.1) An amount that is credited or added to a deposit that is a FHSA as interest or other income in respect of the FHSA is deemed not to be received by the holder of the FHSA or any other person solely because of that crediting or adding. (7) Subparagraph 146.6(5)(b)(ii) of the Act is replaced by the following: (ii) the taxpayer’s net RRSP-to-FHSA transfer amount as at the end of the year. (8) The descriptions of A and B in paragraph 146.6(7)(c) of the Act are replaced by the following: A is the amount that is the total fair market value, immediately before the particular time, of all property held by a FHSA under which the last holder of the transferor FHSA is the last holder, and B is the excess FHSA amount (as defined in subsection 207.‍01(1)) of the last holder of the transferor FHSA immediately before the particular time. (9) Paragraphs 146.6(13)(a) and (b) of the Act are replaced by the following: (a) the survivor is a qualifying individual at that time and (i) no contributions or transfers are made to the FHSA by the survivor after that time, (ii) no qualifying withdrawals are made from the FHSA after that time, and (iii) the balance of the FHSA is transferred to a RRSP or RRIF of the survivor or distributed to the survivor in accordance with subsection (14), by the end of the year following the year of death; or (b) the survivor is not a qualifying individual at that time, in which case the balance of the FHSA is to be transferred to a FHSA, RRSP or RRIF of the survivor, or distributed to the survivor in accordance with subsection (14), by the end of the year following the year of death. (10) Paragraph 146.6(15)(a) of the Act is replaced by the following: (a) if a payment is made from the estate to a FHSA, RRSP or RRIF of the survivor, the payment is deemed to be a transfer from the FHSA to the extent that it is so designated jointly by the legal representative and the survivor in prescribed form filed with the Minister; (11) Paragraphs 146.6(17)(a) to (c) of the Act are replaced by the following: (a) subsections (3) and (3.1) do not apply in respect of that arrangement after the particular time; (b) if the taxpayer who was the last holder under the arrangement is not deceased at the particular time, an amount equal to the fair market value of all the property of the arrangement, determined at that time, is deemed for the purposes of subsection 146.6(6) to be received at that time by the taxpayer out of or under the FHSA; (c) if the last holder is deceased at the particular time, the proportion of the fair market value of all the property of the arrangement that a beneficiary is entitled to, determined at that time, is deemed for the purposes of subsection 146.6(14) to be distributed at that time from the FHSA to the beneficiary; (d) if the arrangement governs a trust, (i) the trust is deemed to have disposed, immediately before the particular time, of each property held by the trust for proceeds equal to the property’s fair market value immediately before the particular time, (ii) the trust is deemed to have acquired, at the particular time, each such property at a cost equal to that fair market value, (iii) the trust’s last taxation year that began before the particular time is deemed to have ended immediately before the particular time, and (iv) a taxation year of the trust is deemed to begin at the particular time; and (e) if the arrangement is a deposit or contract, (i) the arrangement is deemed to have been disposed of immediately before the particular time for proceeds equal to its fair market value immediately before the particular time, (ii) if the arrangement is an annuity contract, the contract is deemed to be a separate annuity contract issued and effected at the particular time otherwise than pursuant to or as a FHSA, and (iii) each person who has an interest or, for civil law, a right in the separate annuity contract or deposit, as the case may be, at the particular time is deemed to acquire the interest at the particular time at a cost equal to its fair market value at the particular time. (12) Subsections (1) to (11) are deemed to have come into force on April 1, 2023. 47 (1) Paragraph 152(1)(b) of the Act is replaced by the following: (b) the amount of tax, if any, deemed by any of subsections 120(2) or (2.2), 122.5(3) to (3.003), 122.51(2), 122.7(2) or (3), 122.72(1), 122.8(4), 122.9(2), 122.91(1), 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1), 127.41(3), 127.44(2) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year. (2) Paragraph 152(1)(b) of the Act, as enacted by subsection (1), is replaced by the following: (b) the amount of tax, if any, deemed by any of subsections 120(2) or (2.2), 122.5(3) to (3.003), 122.51(2), 122.7(2) or (3), 122.72(1), 122.8(4), 122.9(2), 122.91(1), 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1), 127.41(3), 127.44(2), 127.45(2) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year. (3) The portion of subsection 152(3.1) of the Act before paragraph (a) is replaced by the following: Definition of normal reassessment period (3.1) For the purposes of subsections (4), (4.01), (4.2), (4.3), (4.31), (5) and (9), the normal reassessment period for a taxpayer in respect of a taxation year is (4) Paragraph 152(4)(b) of the Act is amended by striking out “or” at the end of subparagraph (vi), by adding “or” at the end of subparagraph (vii) and by adding the following after subparagraph (vii): (viii) is made to give effect to the application of section 245 in respect of a transaction, unless the transaction was disclosed by the taxpayer to the Minister in accordance with section 237.3 or 237.4; (5) Subsection 152(4) of the Act is amended by adding the following after paragraph (b.7): (b.8) a prescribed form that is required to be filed under subsection 18.2(18) is not filed as and when required, and the assessment, reassessment or additional assessment is (i) made before the day that is (A) in the case of a taxpayer described in paragraph (3.1)(a), four years after the day on which the prescribed form containing the prescribed information is filed, and (B) in any other case, three years after the day on which the prescribed form containing the prescribed information is filed, and (ii) in respect of the application of paragraph 12(1)(l.2), subsection 18.2(2), clause 95(2)(f.11)(ii)(D) or (E) or paragraph 111(1)(a.1); (6) Subsection 152(4) of the Act is amended by adding the following after paragraph (b.8), as enacted by subsection (5): (b.9) the assessment, reassessment or additional assessment (i) is made before the day that is three years after the end of the normal reassessment period for the taxpayer in respect of the year and made in respect of a disposition, in the year, of shares of the capital stock of a corporation resident in Canada in respect of which the taxpayer filed an election under paragraph 84.1(2.31)(h), or (ii) is made before the day that is 10 years after the end of the normal reassessment period for the taxpayer in respect of the year and made in respect of a disposition, in the year, of shares of the capital stock of a corporation resident in Canada in respect of which the taxpayer filed an election under paragraph 84.1(2.32)(i); (7) Subsection 152(4) of the Act is amended by adding the following after paragraph (b.9), as enacted by subsection (6): (b.10) a prescribed form that is required to be filed by the taxpayer, or a partnership of which the taxpayer is a member, under subsection 127.45(15) or (18) is not filed as and when required, and the assessment, reassessment or additional assessment is made in relation to transactions or events described in subsections 127.45(11) to (14) or (16) and (17) before the day that is (i) in the case of a taxpayer described in paragraph (3.1)(a), four years after the day on which the form is filed, and (ii) in any other case, three years after the day on which the form is filed; (8) Paragraph 152(4.01)(b) of the Act is amended by striking out “or” at the end of subparagraph (ix) and by adding the following after subparagraph (x): (xi) the transaction referred to in subparagraph (4)(b)(viii), or (xii) the transactions or events referred to in paragraph (4)(b.10); (9) Section 152 of the Act is amended by adding the following after subsection (4.3): Consequential assessment of Part IV tax (4.31) Notwithstanding subsections (4), (4.1) and (5), if a taxpayer in a taxation year receives a taxable dividend from a corporation that, as a result of having paid the dividend, is entitled to a dividend refund, the Minister may, within one year after the expiration of the normal reassessment period for the taxpayer in respect of the year, assess or reassess the tax, interest or penalties payable under Part IV by the taxpayer in respect of the taxable dividend. (10) Subsection (1) is deemed to have come into force on January 1, 2022. (11) Subsection (2) is deemed to have come into force on March 28, 2023. (12) Subsections (3) and (9) apply to assessments or reassessments of taxpayers for taxation years that end on or after April 7, 2022. (13) Subsection (4) applies to transactions that occur on or after January 1, 2024. (14) Subsection (5) applies in respect of taxation years that begin on or after October 1, 2023. (15) Subsection (6) comes into force or is deemed to have come into force on January 1, 2024. (16) Subparagraph 152(4.01)(b)(xi) of the Act, as enacted by subsection (8), applies to transactions that occur on or after January 1, 2024. 48 (1) Paragraph 153(1)(v) of the Act is replaced by the following: (v) a payment out of or under a FHSA, if the amount is required by section 146.6 to be included in computing a taxpayer’s income (2) Subsection (1) is deemed to have come into force on April 1, 2023. 49 (1) Paragraph 157(3)(e) of the Act is replaced by the following: (e) 1/12 of the total of the amounts each of which is deemed by subsection 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1), 127.41(3) or 127.44(2) to have been paid on account of the corporation’s tax payable under this Part for the year. (2) Paragraph 157(3)(e) of the Act, as enacted by subsection (1), is replaced by the following: (e) 1/12 of the total of the amounts each of which is deemed by subsection 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1), 127.41(3), 127.44(2) or 127.45(2) to have been paid on account of the corporation’s tax payable under this Part for the year. (3) Paragraph 157(3.1)(c) of the Act is replaced by the following: (c) 1/4 of the total of the amounts each of which is deemed by subsection 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1), 127.41(3) or 127.44(2) to have been paid on account of the corporation’s tax payable under this Part for the taxation year. (4) Paragraph 157(3.1)(c) of the Act, as enacted by subsection (3), is replaced by the following: (c) 1/4 of the total of the amounts each of which is deemed by subsection 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1), 127.41(3), 127.44(2) or 127.45(2) to have been paid on account of the corporation’s tax payable under this Part for the taxation year. (5) Subsections (1) and (3) are deemed to have come into force on January 1, 2022. (6) Subsections (2) and (4) are deemed to have come into force on March 28, 2023. 50 (1) Section 160 of the Act is amended by adding the following after subsection (1.4): Joint liability — intergenerational business transfer (1.5) If a taxpayer and one or more other taxpayers have jointly elected under (a) paragraph 84.1(2.31)(h) in respect of a disposition of shares of the capital stock of a corporation resident in Canada, they are jointly and severally, or solidarily, liable for the tax payable by the taxpayer under this Part to the extent that the tax payable by the taxpayer is greater than it would have been if the disposition had satisfied the conditions of subsection 84.1(2.31); or (b) paragraph 84.1(2.32)(i) in respect of a disposition of shares of the capital stock of a corporation resident in Canada, they are jointly and severally, or solidarily, liable for the tax payable by the taxpayer under this Part to the extent that the tax payable by the taxpayer is greater than it would have been if the disposition had satisfied the conditions of subsection 84.1(2.32). (2) Subsection (1) comes into force or is deemed to have come into force on January 1, 2024. 51 (1) Subsection 160.2(2.3) of the Act is repealed. (2) Subsection (1) is deemed to have come into force on April 1, 2023. 52 (1) Subsection 163(2) of the Act is amended by adding the following after paragraph (d): (d.1) the amount, if any, by which (i) the amount that would be deemed by subsection 127.44(2) to be paid for the year by the person if that amount were calculated by reference to the information provided in the return or form filed for the year under that subsection exceeds (ii) the amount that is deemed by subsection 127.44(2) to be paid for the year by the person, (2) Paragraph 163(2)(d.1) of the Act, as enacted by subsection (1), is replaced by the following: (d.1) the amount, if any, by which (i) the amount that would be deemed by subsection 127.44(2) or 127.45(2), as the case may be, to be paid for the year by the person if that amount were calculated by reference to the information provided in the return or form filed for the year under that subsection exceeds (ii) the amount that is deemed by subsection 127.44(2) or 127.45(2), as the case may be, to be paid for the year by the person, (3) Subsection (1) is deemed to have come into force on January 1, 2022. (4) Subsection (2) is deemed to have come into force on March 28, 2023. 53 (1) The Act is amended by adding the following after section 183.2: PART II. 2 Tax on Repurchases of Equity Definitions 183.3 (1) The following definitions apply in this Part. covered entity  for a taxation year, means an entity that is a corporation, trust or partnership if at any time in the taxation year (a) equity of the entity is listed on a designated stock exchange; and (b) the entity is (i) a corporation resident in Canada (other than a mutual fund corporation), (ii) a trust that (A) is a real estate investment trust (as defined in subsection 122.1(1)), (B) is a SIFT trust, or (C) would be a SIFT trust (other than a mutual fund trust that has one or more classes of units in continuous distribution) if (I) each reference in paragraph (a) of the definition non-portfolio property in subsection 122.1(1) to “subject entity” were read as “corporation, partnership or trust” and paragraph (c) of that definition were read without reference to the words “in Canada”, (II) paragraph (a) of the definition Canadian real, immovable or resource property in subsection 248(1) were read without reference to the words “situated in Canada”, and (III) the definitions timber resource property in subsection 13(21) and Canadian resource property in subsection 66(15) were read without references to the words “in Canada”, or (iii) a partnership that (A) is a SIFT partnership, or (B) would be a SIFT partnership if (I) each reference in paragraph (a) of the definition non-portfolio property in subsection 122.1(1) to “subject entity” were read as “corporation, partnership or trust” and paragraph (c) of that definition were read without reference to the words “in Canada”, (II) paragraph (a) of the definition Canadian real, immovable or resource property in subsection 248(1) were read without reference to the words “situated in Canada”, and (III) the definitions timber resource property in subsection 13(21) and Canadian resource property in subsection 66(15) were read without references to the words “in Canada”. ( entité visée ) equity  of an entity, means, if the entity is (a) a corporation, a share of the capital stock of the corporation; (b) a trust, an income or capital interest in the trust; and (c) a partnership, an interest as a member of the partnership. ( capitaux propres ) qualifying issuance  means any portion of an issuance that is made (a) in exchange for (i) cash, (ii) a bond, debenture, note or other security (other than equity) of the covered entity that was issued solely for cash consideration, the terms of which confer on the holder the right to make the exchange, or (iii) any combination of properties described in subparagraph (i) or (ii); (b) to an employee of the covered entity (or an entity related to the covered entity) in the course of the employee’s employment; or (c) to a person or partnership, with which the covered entity deals at arm’s length and is not affiliated, in exchange for property used in the covered entity’s active business. ( émission admissible ) reorganization transaction  means a redemption, acquisition or cancellation of equity by a covered entity that is made (a) on an exchange of equity by a holder for consideration that includes equity (other than substantive debt) of (i) the covered entity, (ii) another entity that is related to the covered entity immediately before the exchange and is a covered entity immediately after the exchange, or (iii) another covered entity that controls the covered entity (or an amalgamated successor entity of the covered entity) immediately after the exchange; (b) on an amalgamation of the covered entity with one or more other predecessor corporations to which subsection 87(1) applies if a holder of that equity, immediately before the amalgamation, receives consideration that includes equity (other than substantive debt) of the new corporation (within the meaning of subsection 87(1)) for the disposition of their equity on the amalgamation; (c) on a winding-up of the covered entity during which all or substantially all of the property owned by the covered entity is distributed to the equity holders of the covered entity; (d) in the course of a reorganization to which paragraph 55(3)(a) or (b) applies; (e) on a qualifying disposition (as defined in subsection 107.4(1)); (f) on a qualifying exchange (as defined in subsection 132.2(1)); (g) at the demand of a holder in accordance with the conditions referred to in paragraph 108(2)(a), included in the issued units of the trust, for an amount that does not exceed the fair market value of the equity at the time of the redemption, acquisition or cancellation; or (h) pursuant to the exercise of a statutory right of dissent by a holder of the equity. ( opération de réorganisation ) specified affiliate  at any time, of a covered entity, means a corporation, trust or partnership (in this definition referred to as an “affiliate”) where, at that time, (a) if the affiliate is a corporation, the covered entity (i) controls the corporation, or (ii) has a direct or indirect interest in the equity of the corporation having a fair market value equal to more than 50% of the fair market value of the total equity of the corporation; (b) if the affiliate is a trust, the covered entity (i) is a majority-interest beneficiary (as defined in subsection 251.1(3)) of the trust, or (ii) has a direct or indirect interest in the equity of the trust having a fair market value equal to more than 50% of the fair market value of the total equity of the trust; and (c) if the affiliate is a partnership, the covered entity (i) is a majority-interest partner of the partnership, or (ii) has a direct or indirect interest in the equity of the partnership having a fair market value equal to more than 50% of the fair market value of the total equity of the partnership. ( entité affiliée déterminée ) substantive debt  of a covered entity means equity that, in accordance with its terms (a) is not convertible or exchangeable other than for (i) equity that if issued would be substantive debt of the same covered entity, (ii) a bond, debenture or note of the covered entity, the fair market value of which does not exceed the total of the amounts referred to in subparagraphs (d)(i) to (iv), or (iii) equity that would be issued only after the occurrence of a trigger event pursuant to a non-viability contingent capital provision included in the terms of the equity to satisfy regulatory capital requirements applicable to the covered entity; (b) is non-voting in respect of the election of the board of directors, the trustees or the general partner (as applicable) of the covered entity, except in the event of a failure or default under the terms or conditions of the equity; (c) requires the amount of any dividend or other distribution payable to be calculated (i) as a fixed amount, or (ii) by reference to a percentage of an amount equal to the fair market value of the consideration for which the equity was issued if the percentage is (A) fixed, or (B) determined by reference to a market interest rate (including a Government of Canada Treasury Bill) plus a fixed amount, if any; and (d) entitles any holder of the equity to receive, on the redemption, cancellation or acquisition of the equity by the covered entity or by a person or partnership with whom the covered entity does not deal at arm’s length or is affiliated, an amount that does not exceed the total of the following amounts: (i) the fair market value of the consideration for which the equity was issued, (ii) any unpaid distributions or dividends on the equity that are payable to the holder, (iii) any premium that is payable to the holder solely due to the early redemption, cancellation or acquisition of the equity, and (iv) any other amount in respect of an amount described in subparagraphs (i) to (iii) that is attributable to an increase in the value of a currency other than Canadian currency relative to Canadian currency. ( dette substantielle ) Tax payable (2) Each person or partnership that is a covered entity for a taxation year shall pay a tax for the taxation year equal to the amount determined by the formula 0.02 × (A + B − C) where A is the total fair market value of equity (other than substantive debt) of the covered entity that is redeemed, acquired or cancelled in the taxation year by the covered entity, other than equity that is (a) redeemed, acquired or cancelled in a reorganization transaction, or (b) acquired from a specified affiliate, if that equity was previously deemed by subsection (5) to have been acquired by the covered entity and was previously included in the description of A; B is (a) if equity of a covered entity (other than substantive debt) is redeemed, acquired or cancelled in the taxation year pursuant to a reorganization transaction described in paragraph (a) or (b) of that definition and any portion of the consideration received by a holder for the equity is not equity consideration described in paragraph (a) or (b) of the definition reorganization transaction , the amount determined by the formula D − E where D is the total fair market value of the equity of the covered entity (other than substantive debt) that is redeemed, acquired or cancelled in a reorganization transaction described in this paragraph; and E is the total fair market value of any equity consideration described in paragraph (a) or (b) of the definition reorganization transaction that is received by a holder as consideration for the equity that is redeemed, acquired or cancelled in a reorganization transaction described in this paragraph; and (b) in any other case, nil; and C is the total fair market value of equity (other than substantive debt) of the covered entity that is (a) issued in a qualifying issuance in the taxation year, or (b) disposed of in the taxation year by a specified affiliate of the covered entity (except a disposition to the covered entity or another specified affiliate of the covered entity), if that equity was previously deemed by subsection (5) to have been acquired by the covered entity and was previously included in the description of A. Tax payable — anti-avoidance (3) Equity that is redeemed, acquired or cancelled, or that is issued by a covered entity, as part of a transaction (as defined in subsection 245(1)) or series of transactions shall be included in the description of A or B or excluded from the description of C in subsection (2) (as the case may be) if it is reasonable to consider that the primary purpose of the transaction or series is to cause a decrease in the amount referred to in the description of A or B in that subsection or an increase in the amount referred to in the description of C in that subsection. De minimis rule (4) Despite subsection (2), if the total of the amounts determined for A and B in subsection (2) for a taxation year is less than $1,000,000 (prorated based upon the number of days in the taxation year if the taxation year is less than 365 days), no tax is payable under this Part for the taxation year. Similar transactions (5) For the purposes of subsection (2), if a specified affiliate of a covered entity acquires equity of the covered entity, the equity is deemed to be acquired by the covered entity unless the specified affiliate is (a) a registered securities dealer that (i) acquires the equity in the capacity of an agent in the ordinary course of business, and (ii) disposes of the equity, other than to the covered entity or another specified affiliate of the covered entity, within a reasonable period of time that is consistent with the holding of equity in the ordinary course of business; (b) a trust established for the benefit of employees and former employees of the covered entity (or of a specified affiliate of the covered entity) that satisfies the following conditions (i) the trust is an employee benefit plan, and (ii) the terms of the trust provide that any equity of the covered entity acquired or held by the trust cannot be transferred to, or otherwise be available for the benefit of, the covered entity or any specified affiliate of the covered entity; (c) a trust governed by an employees profit sharing plan; or (d) a trust governed by a deferred profit sharing plan. Similar transactions — anti-avoidance (6) If it is reasonable to consider that one of the main purposes of a transaction (as defined in subsection 245(1)) or series of transactions is to cause a person or partnership to acquire equity of a covered entity to avoid the tax otherwise payable under this Part, the person or partnership shall be deemed to be a specified affiliate of the covered entity from the time that the transaction or series commenced until immediately after the time the transaction or series ends. Return 183.4 (1) If a covered entity redeems, acquires or cancels equity of the entity in a taxation year, (a) if the entity is a corporation, on or before the day it is required to file its return of income under Part I for the year, the corporation shall file with the Minister a return for the year under this Part in prescribed form; (b) if the entity is a trust, within 90 days after the end of the taxation year, the trustee of the trust shall file with the Minister a return for the year under this Part in prescribed form; and (c) if the entity is a partnership, a member of the partnership that has authority to act for the partnership shall file with the Minister a return for the year under this Part in prescribed form on or before the earlier of (i) the day that is five months after the end of the taxation year, and (ii) March 31 in the calendar year immediately following the calendar year in which the taxation year ended. Payment (2) Every covered entity that is liable to pay tax under this Part for a taxation year, shall (a) if the entity is a corporation or trust, pay its tax payable under this Part for the year to the Receiver General on or before its balance-due day for the year; and (b) if the entity is a partnership, pay its tax payable under this Part for the year to the Receiver General on or before the day which the partnership is required to file a return for the year under paragraph (1)(c). Provisions applicable to Part (3) Subsections 150(2) and (3), sections 152, 158 and 159, subsections 160.1(1) and 161(1) and (11), sections 162 to 167 and Division J of Part I are applicable to this Part with such modifications as the circumstances require. (2) Subsection (1) applies to transactions that occur after 2023. 54 (1) Subparagraph (a)(iii) of the description of I in subsection 204.2(1.2) of the Act is replaced by the following: (iii) an amount transferred to the plan on behalf of the individual in accordance with any of subsections 146(16), 146.6(7), 147(19), 147.3(1) and (4) to (7) and 147.5(21) or in circumstances to which subsection 146(21) applies, (2) Subsection (1) is deemed to have come into force on April 1, 2023. 55 (1) The definition excess FHSA amount in subsection 207.01(1) of the Act is replaced by the following: excess FHSA amount  of an individual at a particular time in a taxation year means (a) the amount determined by the formula A + B + C − D − E − F where A is (i) nil, if the individual had not started their maximum participation period in the preceding taxation year, and (ii) the individual’s excess FHSA amount determined at the end of the immediately preceding taxation year, in any other case; B is the total of all amounts each of which is a contribution made to a FHSA by the individual in the taxation year at or before the particular time; C is the total of all amounts transferred in the taxation year under paragraph 146(16)(a.2), at or before the particular time, to a FHSA under which the individual is the holder; D is the lesser of (i) $8,000 plus an amount that would have been the individual’s FHSA carryforward for the taxation year if each amount that was included in that individual’s income under subsection 146.6(6) and could have been, immediately prior to the time it was received, a designated amount, had been designated by the individual as a designated amount, and (ii) the amount determined by the formula $40,000 − G where G is the total of all amounts that were deducted, could have been deducted or would have been deductible by the individual under subsection 146.6(5) in respect of all preceding taxation years if (A) no amounts were transferred under paragraph 146(16)(a.2) to a FHSA of the individual, and (B) notwithstanding clause (A), an amount had been contributed by the individual to a FHSA in each preceding taxation year that is the amount by which the individual’s net RRSP-to-FHSA transfer amount at the end of that year exceeds the individual’s net RRSP-to-FHSA transfer amount at the start of that year; E is the total of all amounts each of which is a designated amount in respect of a transfer or withdrawal made by the individual in the taxation year before the particular time or an amount required to be included in computing the income of the individual under subsection 146.6(6) in the taxation year before the particular time; and F is the total of all amounts, each of which is the portion of an amount required to be included in computing the income of the individual under subsection 146.6(6) in any preceding taxation year, to the extent that it did not reduce what otherwise would have been the individual’s excess FHSA amount in any preceding taxation year; or (b) where the Minister determines that the formula in paragraph (a) does not yield an appropriate result having regard to the circumstances of the individual, a lower amount that, in the Minister’s opinion, is appropriate in the circumstances. ( excédent de CELIAPP ) (2) Paragraph (a) of the definition designated amount in subsection 207.01(1) of the Act is replaced by the following: (a) a transfer in accordance with subparagraph 146.‍6(7)‍(b)‍(ii), to the extent that it does not exceed the total of all amounts transferred under paragraph 146(16)‍(a.‍2) to a FHSA under which the individual is the holder on or before the date of the designation less the total of all amounts previously designated under this paragraph; or (3) Paragraph (b) of the definition swap transaction in subsection 207.01(1) of the Act is amended by striking out “or” at the end of subparagraph (ii), by adding “or” at the end of subparagraph (iii) and by adding the following after subparagraph (iii): (iv) an amount transferred in accordance with paragraph 146(16)(a.2) or to which subsection 146.6(7) applies; (4) Subparagraph (d)(i) of the definition swap transaction in subsection 207.01(1) of the Act is replaced by the following: (i) both registered plans are RRIFs or RRSPs, (5) Paragraph (d) of the definition swap transaction in subsection 207.01(1) of the Act is amended by striking out “or” at the end of subparagraph (iii), by adding “or” at the end of subparagraph (iv) and by adding the following after subparagraph (iv): (v) both registered plans are FHSAs; (6) Subsections (1) to (3) are deemed to have come into force on April 1, 2023. (7) Subsections (4) and (5) are deemed to have come into force on August 4, 2023. 56 (1) Paragraph (a) of the definition refundable tax in subsection 207.5(1) of the Act is replaced by the following: (a) 50% of all contributions (other than an excluded contribution made on or after March 28, 2023) made under the arrangement while it was a retirement compensation arrangement and before the end of the year, and (2) Subsection 207.5(1) of the Act is amended by adding the following in alphabetical order: excluded contribution  means an amount paid or payable under a specified arrangement to obtain or renew a letter of credit or surety bond issued by a financial institution for the purposes of securing future retirement benefit payments out of or under the arrangement; ( cotisation exclue ) specified arrangement  means a retirement compensation arrangement of which the primary purpose is to provide annual or more frequent periodic retirement benefit payments that are paid (a) as supplemental benefits provided out of or under (i) a registered pension plan, (ii) a registered retirement savings plan, (iii) a deferred profit sharing plan, (iv) a pooled registered pension plan, or (v) any combination of plans described in subparagraphs (i) to (iv), or (b) under an arrangement that would, in the absence of subsection 147.1(8) and section 8504 of the Income Tax Regulations , substantially comply with the prescribed conditions for registration for a registered pension plan under section 8501 of those Regulations; ( convention déterminée ) (3) Subsections (1) and (2) are deemed to have come into force on March 28, 2023. 57 (1) The Act is amended by adding the following after section 207.7: Definitions 207.71 (1) The following definitions apply in this section. eligible employer  means an employer that paid an amount, or that has a predecessor employer (as defined in subsection 8500(1) of the Income Tax Regulations ) that paid an amount, before March 28, 2023, under a specified arrangement that is an excluded contribution. ( employeur admissible ) specified refundable tax  of a specified arrangement at the end of a taxation year means the amount, if any, determined by the formula A − B where A is the amount elected under paragraph (2)(c); and B is the total of all amounts, if any, each of which is a refund as determined under subsection (3), in respect of a preceding taxation year. ( impôt remboursable déterminé ) Election (2) Subsection (3) applies to a specified arrangement if (a) an eligible employer, or the custodian of the arrangement, paid a refundable tax under this Part with respect to an excluded contribution made under the arrangement before March 28, 2023; (b) the eligible employer files an election with the Minister in prescribed form and manner; and (c) the election includes an elected amount that does not exceed the total amount of refundable tax paid with respect to excluded contributions made under the arrangement before March 28, 2023. Amount of refund (3) If this subsection applies to a specified arrangement, the Minister may refund to the eligible employer, or to the custodian of the arrangement, an amount claimed on the return for a taxation year described in subsection 207.7(3), not exceeding the lesser of (a) 50% of all retirement benefits paid in the taxation year directly by the eligible employer for the benefit of beneficiaries whose retirement benefits were secured under the specified arrangement with a letter of credit or surety bond issued by a financial institution, and (b) the specified refundable tax of the specified arrangement at the end of the taxation year. Refundable tax definition (4) If an eligible employer claims a refund under subsection (3) for a taxation year, paragraph (c) of the definition refundable tax in subsection 207.5(1) is to be read as follows: (c) the total of (i) 50% of all amounts paid as distributions to one or more persons (including amounts that are required by paragraph 12(1)(n.3) to be included in computing the recipient’s income) under the arrangement while it was a retirement compensation arrangement and before the end of the year, other than a distribution paid where it is established, by subsequent events or otherwise, that the distribution was paid as part of a series of payments and refunds of contributions under the arrangement, and (ii) all amounts determined under subsection 207.71(3) in respect of the specified arrangement for the year and a preceding year; (2) Subsection (1) applies to the 2024 and subsequent taxation years. 58 (1) The Act is amended by adding the following after section 211.91: PART XII. 7 Carbon Capture, Utilization and Storage Definitions 211.92 (1) The following definitions apply in this Part and in section 127.44. actual eligible use percentage , in respect of a CCUS project, for a period means the amount, expressed as a percentage, determined by the formula A ÷ B where A is the quantity of captured carbon that the CCUS project supported for storage or use in eligible use during the period, and B is the total quantity of captured carbon that the CCUS project supported for storage or use in both eligible use and ineligible use during the period. ( pourcentage réel d’utilisation admissible ) exempt corporation  at any time, means a corporation that does not have an ownership interest, whether directly or indirectly, in a qualified CCUS project in respect of which $20 million or more of qualified CCUS expenditures are expected to be incurred (based on the most recent project evaluation issued by the Minister of Natural Resources for the project). ( société exonérée ) first project period , in respect of a CCUS project, means the period that begins on the first day of commercial operations — or, if the project has not yet commenced operations, the day on which, according to the most recent project plan, operations are expected to begin — and ends (a) if that day is before October of a calendar year, on December 31 of the calendar year that includes the fourth anniversary of that day; or (b) if that day is after September of a calendar year, on December 31 of the calendar year that includes the fifth anniversary of that day. ( première période du projet ) first recovery taxation year , in respect of a project period of a CCUS project, means the taxation year that includes the last day of the first project period. ( première année d’imposition de recouvrement ) fourth project period , in respect of a CCUS project, means the five calendar years following the end of the third project period. ( quatrième période du projet ) fourth recovery taxation year , in respect of a project period of a CCUS project, means the taxation year that includes the last day of the fourth project period. ( quatrième année d’imposition de recouvrement ) knowledge sharing CCUS project  means a qualified CCUS project that (a) is expected to incur qualified CCUS expenditures of $250 million or more based on the most recent project evaluation issued by the Minister of Natural Resources for the project; or (b) has incurred $250 million or more of qualified CCUS expenditures before the first day of commercial operations of the project. ( projet de CUSC requérant l’échange de connaissances ) knowledge sharing report , in respect of a CCUS project, means (a) an annual operations knowledge sharing report containing the information described by the Minister of Natural Resources in the CCUS-ITC Technical Guidance Document as published by the Minister of Natural Resources and amended from time to time, in the form annexed to the CCUS-ITC Technical Guidance Document ; and (b) the construction and completion knowledge sharing report containing the information described in the CCUS-ITC Technical Guidance Document referred to in paragraph (a). ( rapport sur l’échange de connaissances ) knowledge sharing taxpayer  means a taxpayer that claimed a CCUS tax credit for a taxation year ending before the project start-up date of a knowledge sharing CCUS project. ( contribuable échangeant des connaissances ) project period , in respect of a CCUS project, means any of the first project period, the second project period, the third project period and the fourth project period. ( période de projet ) project start-up date  means the day that is 120 days before the first day of commercial operations. ( jour du début du projet ) recovery taxation year , in respect of a CCUS project, means any of the first recovery taxation year, the second recovery taxation year, the third recovery taxation year and the fourth recovery taxation year. ( année d’imposition de recouvrement ) relevant project period  means (a) in respect of the first recovery taxation year, the first project period; (b) in respect of the second recovery taxation year, the second project period; (c) in respect of the third recovery taxation year, the third project period; and (d) in respect of the fourth recovery taxation year, the fourth project period. ( période de projet pertinente ) reporting-due day  means (a) in respect of an annual climate risk disclosure report, the day that is nine months after the day on which the reporting taxation year for the report ends; (b) in respect of an annual operations knowledge sharing report, (i) if the report is the first such report, (A) where the project start-up date is before October 1 in a calendar year, June 30 of the following calendar year, and (B) where the project start-up date is after September 30 in a calendar year, June 30 of the second calendar year after the calendar year which includes the the project start-up date, and (ii) if the report is not the first report, each June 30 of the first four calendar years immediately following the calendar year which includes the June 30 referred to in subparagraph (i); and (c) in respect of the construction and completion knowledge sharing report, the last day of the sixth month beginning after the project start-up date. ( date d’échéance du rapport ) reporting period  means (a) in respect of the construction and completion knowledge sharing report, the period that begins on the first day an expenditure for a CCUS project is incurred and ends on the project start-up date of the knowledge sharing CCUS project; and (b) in respect of an annual operations knowledge sharing report, each period that begins on the project start-up date and ends on the last day of the calendar year ending immediately before the reporting-due day for the annual operations knowledge sharing report. ( période de déclaration ) reporting taxation year  means (a) the first taxation year of a taxpayer in which a CCUS tax credit was deducted, in respect of a CCUS project of the taxpayer; and (b) each taxation year that (i) begins after a taxation year referred to in paragraph (a), and (ii) ends before the twenty-first calendar year after the end of the taxation year which includes the first day of commercial operations of the CCUS project. ( année d’imposition de la déclaration ) second project period , in respect of a CCUS project, means the five calendar years following the end of the first project period. ( deuxième période du projet ) second recovery taxation year , in respect of a project period of a CCUS project, means the taxation year that includes the last day of the second project period. ( deuxième année d’imposition de recouvrement ) third project period , in respect of a CCUS project, means the five calendar years following the end of the second project period. ( troisième période du projet ) third recovery taxation year , in respect of a project period of a CCUS project, means the taxation year that includes the last day of the third project period. ( troisième année d’imposition de recouvrement ) Recovery of development tax credit (2) A taxpayer shall pay a tax under this Part, for a particular taxation year that includes the first day of commercial operations of a CCUS project, or for any preceding year, equal to the amount, if any, by which the taxpayer’s cumulative CCUS development tax credit for the immediately preceding taxation year exceeds its cumulative CCUS development tax credit for the particular taxation year. Acceleration of recovery tax (3) If the actual eligible use percentage for a CCUS project for any period described in subparagraph (c)(i) or (ii) of the definition qualified CCUS project in subsection 127.44(1) is less than 10%, then for the purposes of applying subsections (4) and (5) (a) the actual eligible use percentage of the project for the relevant project period to which the period relates, and for each subsequent project period, is deemed to be nil; (b) the relevant project period for the particular recovery taxation year is deemed to include each subsequent project period; and (c) those subsections do not apply to a subsequent recovery taxation year in respect of the project. Development credits recovery amount (4) If the projected eligible use percentage of a CCUS project for the relevant project period in respect of a particular recovery taxation year exceeds the actual eligible use percentage of the CCUS project for that period by more than five percentage points, there shall be added to the tax otherwise payable under this Part for the particular recovery taxation year by a taxpayer that deducted a CCUS tax credit in respect of the CCUS project an amount equal to the amount determined by the formula A − B − C where A is the amount of the taxpayer’s cumulative CCUS development tax credit for the taxation year that includes the first day of commercial operations; B is the amount that would be determined for A if the projected eligible use percentage for the relevant project period were equal to its actual eligible use percentage; and C is the total of all amounts, each of which is an amount previously paid by the taxpayer as a tax under this Part in respect of the disposition or export of a property in relation to the project because of subsection (9), to the extent that the amount did not reduce the tax payable by the taxpayer under this subsection in a preceding taxation year. Refurbishment credits recovery amount (5) If the projected eligible use percentage of a CCUS project for the relevant project period in respect of a particular recovery taxation year exceeds the actual eligible use percentage of the CCUS project for that period by more than five percentage points, there shall be added to the tax otherwise payable under this Part for the particular recovery taxation year by a taxpayer that deducted a CCUS tax credit in respect of the CCUS project, an amount equal to the amount determined by the formula A − B − C where A is the total of all amounts, each of which is the amount that is the taxpayer’s CCUS refurbishment tax credit under subsection 127.44(5) for the year or a previous taxation year; B is the amount that would be determined for A if the projected eligible use percentage for the relevant project period were equal to its actual eligible use percentage; and C is the total of all amounts, each of which is an amount previously paid by the taxpayer as a tax under this Part in respect of the disposition or export of a property in relation to the project because of subsection (10), to the extent that the amount did not reduce the tax payable by the taxpayer under this subsection in a preceding taxation year. Extraordinary eligible use reduction (6) For the purposes of determining a taxpayer’s liability for tax under this Part for a taxation year, subsection (7) applies if (a) the actual eligible use percentage for a qualified CCUS project during a project period is significantly reduced due to extraordinary circumstances, for bona fide reasons outside the control of the taxpayer and each person or partnership that does not deal at arm’s length with the taxpayer; (b) the taxpayer requests in writing, on or before the taxpayer’s filing-due date for the year, that the Minister consider the potential application of this subsection and subsection (7); and (c) the Minister is satisfied that the taxpayer has taken all reasonable steps to attempt to rectify the extraordinary circumstances, and that it is appropriate, having regard to all the circumstances, to apply this subsection and subsection (7). Effect of extraordinary circumstances (7) If the conditions set out in subsection (6) are met for a taxation year, (a) if the qualified CCUS project’s operations are affected by extraordinary circumstances for all or substantially all of the project period, then no amount is payable by the taxpayer for the year under subsections (3) to (5) in respect of the project; and (b) in any other case, the portion of the project period during which the project’s operations are affected by the extraordinary circumstances shall be disregarded for the purpose of calculating the actual eligible use percentage for the project period. Shutdown (8) For the purposes of determining a taxpayer’s liability for tax under this Part for a recovery taxation year, if a qualified CCUS project is inoperative for all or a portion of a relevant project period, (a) if the project is inoperative for all or substantially all of the period, then no amount is payable by the taxpayer for the year under subsections (3) to (5) in respect of the project; and (b) in any other case, the portion of the project period during which the project is inoperative shall be disregarded for the purpose of calculating the actual eligible use percentage for the project period. Development property disposition (9) Except where subsection (11) applies, if at any time in a particular taxation year a taxpayer disposes of or exports from Canada a property for which the taxpayer’s qualified CCUS expenditure resulted in the determination of a cumulative CCUS development tax credit for a previous taxation year, or would so result for the particular year but for this subsection, the following rules apply: (a) if the time is before the total CCUS project review period of the CCUS project to which the expenditure relates, the expenditure is deemed not to be a qualified CCUS expenditure in respect of the CCUS project for the purpose of determining the taxpayer’s cumulative CCUS development tax credit for the particular year and any subsequent taxation years; and (b) if the time is during the total CCUS project review period of the CCUS project to which the expenditure relates, there shall be added to the tax otherwise payable by the taxpayer under this Part for the year the amount determined by the formula A × B × C ÷ D − E where A is the qualified CCUS expenditure in respect of the property as determined for the taxation year that includes the first day of commercial operations, B is the appropriate specified percentage, C is the amount, not exceeding the amount determined for D, equal to (i) if the property is disposed of to a person who deals at arm’s length with the taxpayer, the proceeds of disposition of the property, or (ii) if the property is disposed of to a person who does not deal at arm’s length with the taxpayer, or is exported from Canada but not disposed of, the fair market value of the property at that time, D is the taxpayer’s capital cost of the property, and E is the total of all amounts, each of which can reasonably be considered to be the portion of any amount previously paid by the taxpayer because of subsection (4) in respect of the property, to the extent that the amount did not reduce the tax payable by the taxpayer under this subsection in a preceding taxation year. Refurbishment property disposition (10) Except where subsection (11) applies, if at any time in a particular taxation year during the total project review period of a CCUS project a taxpayer disposes of or removes from Canada a property for which the taxpayer’s qualified CCUS expenditure resulted in the determination of a CCUS refurbishment tax credit for the year or a previous taxation year, then there shall be added to the tax otherwise payable by the taxpayer under this Part for the year the amount determined by the formula A × B × C ÷ D − E where A is the qualified CCUS expenditure in respect of the property; B is the appropriate specified percentage; C is the amount, not exceeding the amount determined for D, equal to (a) if the property is disposed of to a person who deals at arm’s length with the taxpayer, the proceeds of disposition of the property, or (b) if the property is disposed of to a person who does not deal at arm’s length with the taxpayer, or is exported from Canada, the fair market value of the property; D is the taxpayer’s capital cost of the property; and E is the total of all amounts, each of which can reasonably be considered to be the portion of any amount previously paid by the taxpayer because of subsection (5) in respect of the property, to the extent that the amount did not reduce the tax payable by the taxpayer under this subsection in a preceding taxation year. Election — CCUS project sale (11) If at any time a qualifying taxpayer (referred to in this subsection as the “vendor”) disposes of all or substantially all of its property that is part of a qualified CCUS project of the taxpayer to another taxable Canadian corporation (referred to in this subsection as the “purchaser”) and the vendor and the purchaser jointly elect in prescribed form to have this subsection apply, the following rules apply: (a) the purchaser is deemed to have made the qualifying expenditures of the vendor at the times incurred by the vendor; (b) the provisions of this Act that applied to the vendor in respect of the property that are relevant to the application of the Act in respect of the property after that time are deemed to have applied to the purchaser and, for greater certainty, the purchaser is deemed to have claimed the tax credits determined under section 127.44 that could have been claimed by the vendor, before that time, in respect of the CCUS project; (c) any project plans that were prepared or filed by the vendor in respect of the CCUS project before that time are deemed to have been filed by the purchaser; (d) the purchaser is or will be liable for amounts in respect of the property for which the vendor would be liable under this Part in respect of actions, transactions or events that occur after that time as if the vendor had undertaken them or otherwise participated in them; and (e) subsections (9) and (10) do not apply to the vendor in respect of the disposition of property to the purchaser. Partnerships (12) Subject to section 127.47, if subsection 127.44(11) has at any time applied to add an amount in computing the CCUS tax credit of a member of the partnership, then for the purposes of this Part, subsections (2) to (11) shall apply to determine amounts in respect of the partnership as if the partnership were a taxable Canadian corporation, its fiscal period were its taxation year and it had deducted all of the CCUS tax credits that were previously added in computing the CCUS tax credit of any member of the partnership under subsection 127.44(2) because of the application of subsection 127.44(11) in respect of its partnership interest. Member’s share of tax (13) Unless subsection (14) applies, if, in a taxation year, a taxpayer is a member of a partnership, the amount that can reasonably be considered to be the taxpayer’s share of any amount of tax determined because of subsection (12) in respect of the partnership for its fiscal period ending in the taxation year shall be added to the taxpayer’s tax otherwise payable under this Part for the taxation year. Election by member to pay tax (14) A taxable Canadian corporation that is a member of a partnership during a fiscal period of the partnership may elect, in prescribed form and manner, to add to its tax payable under this Part for its taxation year that includes the end of the fiscal period the total amount of tax determined for that fiscal period because of subsection (12) in respect of the partnership. Joint, several and solidary liability (15) Each member of a partnership is jointly and severally, or for civil law, solidarily, liable for any portion of the amount of tax — determined because of subsection (12) in respect of the partnership for a taxation year — that is not added to the tax payable (a) of a member of the partnership under subsection (13); or (b) of a taxable Canadian corporation because of subsection (14) and paid by the corporation by its filing-due date for the year. Reporting requirements 211.93 (1) A taxpayer shall (a) if the taxpayer is a knowledge sharing taxpayer, submit in respect of each reporting period a knowledge sharing report to the Minister of Natural Resources on or before the reporting-due day for the report; and (b) if the taxpayer is a corporation that is not an exempt corporation, on or before the reporting-due day for each reporting taxation year, make available to the public, in prescribed manner, a climate risk disclosure report for the year that (i) describes the climate-related risks and opportunities for the corporation based on the following thematic areas: (A) the corporation’s governance in respect of climate-related risks and opportunities, (B) the actual and potential impacts of climate-related risks and opportunities on the corporation’s businesses, strategy and financial planning, if such information is material, (C) the processes used by the corporation to identify, assess and manage climate related risks, and (D) the metrics and targets used by the corporation to assess and manage relevant climate-related risks and opportunities, and (ii) explains how the corporation’s governance, strategies, policies and practices contribute to achieving Canada’s (A) commitments under the Paris Agreement made on December 12, 2015, and (B) goal of net-zero emissions by 2050. Publication (2) For the purposes of subsection (1), a climate risk disclosure report is deemed to have been made public in a prescribed manner if the report includes the date it was published and is made publicly available by, or on behalf of, the corporation on the website of the corporation or a related person for a period of at least three years after the reporting-due day. Shared filing (3) If a person is required by subsection (1) to submit a knowledge sharing report in respect of a knowledge sharing CCUS project, the submission with full and accurate disclosure by any such person of the report is deemed to have been made by each person to whom subsection (1) applies in respect of the report. Penalty — non-compliance with reporting requirements (4) Every knowledge sharing taxpayer that fails to provide the knowledge sharing report required under paragraph (1)(a) in respect of a reporting period is liable to a penalty in the amount of $2 million payable the day after the reporting-due day. Failure to disclose (5) Every taxpayer that fails to make available the climate risk disclosure report as required under paragraph (1)(b) in respect of a reporting taxation year is liable to a penalty in the amount that is the lesser of (a) 4% of the total of all amounts, each of which is the amount of a CCUS tax credit of the corporation in respect of each taxation year that ended before the reporting-due day for the reporting taxation year, and (b) $1 million. Report disclosure (6) The Department of Natural Resources shall publish on a website, maintained by the Government of Canada, each knowledge sharing report referred to in subsection (1) as soon as practicable after a taxpayer has submitted the report. Eligible use reporting (7) If a CCUS tax credit was deducted for a taxation year by a taxpayer in respect of a CCUS project that began commercial operations in the year or a prior taxation year, the actual eligible use percentage for a relevant project period in respect of the CCUS project is deemed to be nil until the taxpayer has filed in prescribed form, with each of its returns of income for taxation years that include any part of the relevant project period, a report stating (a) the actual amount of carbon captured, during the calendar year ending in the taxation year, for storage or use in eligible use; and (b) the total quantity of captured carbon during that calendar year that supported storage or use in both eligible use and ineligible use. Administration 211. 94 Subsection 150(2) and (3), sections 152, 158, 159 and 161 to 167 and Division J of Part I apply to this Part, with such modification as the circumstances require, except that, in the application of subsection 161(1) to an amount of tax payable under section 211.92, the balance-due day of a taxpayer in respect of a recovery taxation year is deemed to be the balance-due day of the taxation year for the related CCUS tax credit under subsection 127.44(2). Records and books 211. 95 Every person required by section 230 to keep records and books of account on behalf of a taxpayer shall retain all records and books of account referred to in that section as are necessary to verify information regarding CCUS tax credits of the taxpayer under section 127.44 or amounts payable by the taxpayer under this Part, in respect of a CCUS project, until the end of the later of (a) the period referred to in paragraph 230(4)(b), and (b) 26 years after the end of the taxpayer’s last taxation year for which an amount was deemed to have been paid under subsection 127.44(2) by reason of its paragraph (a). (2) Subsection (1) is deemed to have come into force on January 1, 2022. 59 (1) The portion of subsection 214(17) of the Act before paragraph (a) is replaced by the following: Deemed interest payments (17) For the purposes of subsections (16) and (18), (2) Section 214 of the Act is amended by adding the following after subsection (17): Hybrid mismatch arrangements — deemed dividend (18) For the purposes of this Part, an amount paid or credited as interest by a corporation resident in Canada in a taxation year of the corporation to a non-resident person is deemed to have been paid by the corporation as a dividend, and not to have been paid or credited by the corporation as interest, to the extent that an amount in respect of the interest is not deductible in computing the income of the corporation for the year because of subsection 18.4(4). (3) Subsections (1) and (2) apply in respect of payments arising on or after July 1, 2022. 60 (1) Subsection 216(1) of the Act is amended by striking out “and” at the end of paragraph (c), by adding “and” at the end of paragraph (d) and by adding the following after paragraph (d): (e) the definitions eligible group entity , excluded entity and fixed interest commercial trust in subsection 18.2(1) and section 18.21 do not apply in computing the non-resident person’s income. (2) Subsection (1) applies in respect of taxation years of a taxpayer that begin on or after October 1, 2023. 61 (1) Subsection 220(2.2) of the Act is replaced by the following: Exception (2.2) Subsection (2.1) does not apply in respect of a prescribed form, receipt or document, or prescribed information, that is filed with the Minister on or after the day specified, in respect of the form, receipt, document or information, in subsection 37(11), paragraph (m) of the definition investment tax credit in subsection 127(9) or subsection 127.44(17). (2) Subsection 220(2.2) of the Act, as enacted by subsection (1), is replaced by the following: Exception (2.2) Subsection (2.1) does not apply in respect of a prescribed form, receipt or document, or prescribed information, that is filed with the Minister on or after the day specified, in respect of the form, receipt, document or information, in subsection 37(11), paragraph (m) of the definition investment tax credit in subsection 127(9), subsection 127.44(17) or 127.45(3). (3) Subsection (1) is deemed to have come into force on January 1, 2022. (4) Subsection (2) is deemed to have come into force on March 28, 2023. 62 Subsection 225.1(1.1) of the Act is amended by striking out “and” at the end of paragraph (b) and by adding the following after that paragraph: (b.1) in the case of an amount payable under any of subsections 211.92(2) to (5), in respect of the day on which the notice of assessment is sent, (i) for one-fifth of the amount, one year after that day, (ii) for two-fifths of the amount, two years after that day, (iii) for three-fifths of the amount, three years after that day, (iv) for four-fifths of the amount, four years after that day, and (v) for the entire amount, five years after that day; and 63 (1) Section 227 of the Act is amended by adding the following after subsection (6.2): Hybrid mismatch adjustment (6.3) If, in respect of a payment (as defined in subsection 18.4(1)) arising under or in connection with a hybrid mismatch arrangement (as defined in that subsection), an amount was paid to the Receiver General under Part XIII on behalf of a person because an amount was deemed to have been paid by a corporation to the person as a dividend under subsection 214(18) and a deduction is allowed in respect of the payment or a portion of it, as the case may be, under paragraph 20(1)(yy), (a) subject to paragraph (b), the Minister shall, on written application made no later than two years after the day on which the assessment is made in respect of the application of paragraph 20(1)(yy), pay to the person the amount determined by the formula A − B where A is the lesser of (i) the total of all amounts, if any, paid to the Receiver General on or prior to the day the written application was made on behalf of the person and in respect of the liability of the person to pay an amount under Part XIII in respect of the payment or the portion of it, as the case may be, and (ii) the amount that would be payable to the Receiver General under Part XIII if an amount equal to the amount deductible under paragraph 20(1)(yy) were paid by the corporation to the person as a dividend described in paragraph 212(2)(a) at the end of the taxation year in which the amount is deductible under paragraph 20(1)(yy), and B is the amount that would be payable to the Receiver General under Part XIII (if this Act were read without reference to subsection 214(18)) if an amount equal to the amount deductible under paragraph 20(1)(yy) had been paid or credited as interest by the corporation to the person at the end of the taxation year in which the amount is deductible under paragraph 20(1)(yy); and (b) if the person is or is about to become liable to make a payment to His Majesty in right of Canada, the Minister may apply the amount otherwise payable under paragraph (a) to that liability and notify the person of that action. (2) Subsection 227(7.1) of the Act is replaced by the following: Application for determination (7.1) Where, on application under subsection (6.1) or (6.3) by or on behalf of a person to the Minister in respect of an amount paid under Part XIII to the Receiver General, the Minister is not satisfied that the person is entitled to the amount claimed, the Minister shall, at the person’s request, determine, with all due dispatch, the amount, if any, payable under subsection (6.1) or (6.3), as the case may be, to the person and shall send a notice of determination to the person, and sections 150 to 163, subsections 164(1) and 164(1.4) to 164(7), sections 164.1 to 167 and Division J of Part I apply with such modifications as the circumstances require. (3) Subsections (1) and (2) apply in respect of payments arising on or after July 1, 2022. 64 (1) Section 237.3 of the Act is amended by adding the following after subsection (12): Optional disclosure — GAAR (12.1) If subsection (2) does not apply to a taxpayer in respect of a transaction or series of transactions of which the transaction is a part, the taxpayer may file an information return in prescribed form and containing prescribed information in respect of the transaction or series on or before the taxpayer’s filing-due date for the taxation year in which the transaction occurs. Late filing — GAAR (12.2) Despite subsection (12.1), a taxpayer may file the information return referred to in subsection (12.1) up to one year after the deadline referred to in that subsection, in which case (a) for the purpose of applying subparagraphs 152(4)(b)(viii) and (4.01)(b)(xi) to the transaction referred to in subsection (12.1), the reference to “3 years” in paragraph 152(4)(b) is to be read as “1 year”; and (b) for the purpose of applying subsection 245(5.1) to the transaction, the information return is deemed to have been filed within the time required by this section. (2) Subsection (1) applies to transactions that occur on or after January 1, 2024. 65 (1) Subparagraph 241(4)(d)(vi.1) of the Act is replaced by the following: (vi.1) to an official of the Department of Natural Resources solely for the purposes of determining whether (A) property is prescribed energy conservation property (as defined in Part LXXXII of the Income Tax Regulations ) or whether an outlay or expense is a Canadian renewable and conservation expense (as defined in section 66.1), (B) a process is a CCUS process (as defined in section 127.44), whether property is dual-use equipment (as defined in section 127.44), whether a project is a qualified CCUS project (as defined in section 127.44) or whether a property is described in Class 57 or 58 of Schedule II to the Income Tax Regulations , (C) a property is a clean technology property (as defined in section 127.45), and (D) a cost is a ZETM cost of capital or a ZETM cost of labour (as defined in section 125.2) and activities are qualified zero-emission technology manufacturing activities (as defined in Part LII of the Income Tax Regulations ), (2) Clause 241(4)(d)(xx.1)(A) of the Act is replaced by the following: (A) the Department of Employment and Social Development, the Department of Health or the Department of Public Works and Government Services, solely for the purpose of the administration or enforcement of the Canadian Dental Care Plan established under the authority of the Department of Health Act in respect of dental service for individuals, or 66 (1) Section 245 of the Act is amended by adding the following before subsection (1): Preamble 245 (0.1) This section of the Act contains the general anti-avoidance rule, which (a) applies to deny the tax benefit of avoidance transactions that result directly or indirectly either in a misuse of provisions of the Act (or any of the enactments listed in subparagraphs (4)(a)(ii) to (v)) or an abuse having regard to those provisions read as a whole, while not preventing taxpayers from obtaining tax benefits contemplated by Parliament; and (b) strikes a balance between (i) the Government of Canada’s responsibility to protect the tax base and the fairness of the tax system, and (ii) taxpayers’ need for certainty in planning their affairs. (2) Subsection 245(3) of the Act is replaced by the following: Avoidance transaction (3) Unless it may reasonably be considered that obtaining the tax benefit is not one of the main purposes for undertaking or arranging a transaction, the transaction is an avoidance transaction if the transaction (a) but for this section, would result, directly or indirectly, in a tax benefit; or (b) is part of a series of transactions, which series, but for this section, would result, directly or indirectly, in a tax benefit. (3) Section 245 of the Act is amended by adding the following after subsection (4): Economic substance — effect (4.1) If an avoidance transaction — or a series of transactions that includes the avoidance transaction — is significantly lacking in economic substance, this is an important consideration that tends to indicate that the transaction results in a misuse under paragraph (4)(a) or an abuse under paragraph (4)(b). Economic substance — meaning (4.2) Factors that establish that a transaction or series of transactions is significantly lacking in economic substance may include, but are not limited to, any of the following: (a) all or substantially all of the opportunity for gain or profit and risk of loss of the taxpayer — taken together with those of all non-arm’s length taxpayers (other than those non-arm’s length taxpayers who can reasonably be considered, having regard to the circumstances viewed as a whole, to have economic interests that are largely adverse from those of the taxpayer) — remains unchanged, including because of (i) a circular flow of funds, (ii) offsetting financial positions, (iii) the timing between steps in a series, or (iv) the use of an accommodation party; (b) it is reasonable to conclude that, at the time the transaction or series was entered into, the expected value of the tax benefit exceeded the expected non-tax economic return (which excludes both the tax benefit and any tax advantages connected to another jurisdiction); and (c) it is reasonable to conclude that the entire, or almost entire, purpose for undertaking or arranging the transaction or series was to obtain the tax benefit. (4) Section 245 of the Act is amended by adding the following after subsection (5): Penalty (5.1) If subsection (2) applies to determine the tax consequences to a person for a taxation year in respect of a transaction that was not disclosed by the person to the Minister in accordance with section 237.3 or 237.4, the person is liable to a penalty for the taxation year equal to the amount determined by the formula (A + B) × 25% − C where A is the amount by which the tax payable by the person under this Act for the year exceeds the amount that would have been payable by the person under this Act for the year if subsection (2) had not applied in respect of the transaction; B is the amount by which the total of all amounts, each of which is an amount that would have been deemed to be paid on account of the person’s tax payable under Part I for the year if subsection (2) had not applied in respect of the transaction, exceeds the total of all amounts that are deemed to be paid on account of the person’s tax payable under Part I for the year; and C is the amount of any penalty payable by the person under subsection 163(2), to the extent that the amount is in respect of the transaction or a series that includes the transaction and did not reduce the penalty payable by the person under this subsection in a preceding taxation year. Penalty — exception (5.2) Subsection (5.1) does not apply to a person in respect of a transaction if the person demonstrates that, at the time that the transaction was entered into, it was reasonable for the person to have concluded that subsection (2) would not apply to the transaction in reliance on the transaction or a series that includes the transaction being identical or almost identical to a transaction or series that was the subject of (a) published administrative guidance or statements made by the Minister or another relevant governmental authority; or (b) one or more court decisions. Provisions applicable (5.3) Sections 152, 158, 159, 160.1, 164 to 167 and Division J of Part I apply to subsection (5.1) with such modifications as the circumstances require. (5) Subsections (2) and (3) apply to transactions that occur on or after January 1, 2024. (6) Subsection (4) applies to transactions that occur on or after the later of January 1, 2024 and the day on which this Act receives royal assent. 67 (1) Subparagraph (f)(vi) of the definition disposition in subsection 248(1) of the Act is replaced by the following: (vi) if the transferor is an amateur athlete trust, a cemetery care trust, an employee trust, a trust deemed by subsection 143(1) to exist in respect of a congregation that is a constituent part of a religious organization, a related segregated fund trust (in this paragraph having the meaning assigned by section 138.1), a trust described in paragraph 149(1)(o.4) or a trust governed by an eligible funeral arrangement, an employees profit sharing plan, a FHSA, a registered disability savings plan, a registered education savings plan, a registered supplementary unemployment benefit plan or a TFSA, the transferee is the same type of trust, and (2) The definition employee benefit plan in subsection 248(1) of the Act is amended by adding the following after paragraph (b): (b.1) an employee ownership trust, (3) The portion of the definition employee trust in subsection 248(1) of the Act before paragraph (a) is replaced by the following: employee trust  means an arrangement (other than an employee ownership trust, an employees profit sharing plan, a deferred profit sharing plan or a plan referred to in subsection 147(15) as a “revoked plan”) established after 1979 (4) Subparagraph (d)(ii) of the definition mineral resource in subsection 248(1) of the Act is replaced by the following: (ii) the principal mineral extracted is ammonite gemstone, calcium chloride, diamond, gypsum, halite, kaolin, lithium or sylvite, or (5) Subsection 248(1) of the Act is amended by adding the following in alphabetical order: substantive CCPC  means a private corporation (other than a Canadian-controlled private corporation) that (a) is controlled, directly or indirectly in any manner whatever, by one or more individuals resident in Canada, or (b) would, if each share of the capital stock of a corporation that is owned by a Canadian resident individual were owned by a particular individual, be controlled by the particular individual; ( SPCC en substance ) (6) Subsection 248(1) of the Act is amended by adding the following in alphabetical order: absorbed capacity  has the same meaning as in subsection 18.2(1); ( capacité absorbée ) cumulative unused excess capacity  has the same meaning as in subsection 18.2(1); ( capacité excédentaire cumulative inutilisée ) excess capacity  has the same meaning as in subsection 18.2(1); ( capacité excédentaire ) interest and financing expenses  has the same meaning as in subsection 18.2(1), except for the purposes of the definition economic profit in subsection 126(7); ( dépenses d’intérêts et de financement ) interest and financing revenues  has the same meaning as in subsection 18.2(1); ( revenus d’intérêts et de financement ) restricted interest and financing expense  has the same meaning as in subsection 111(8); ( dépense d’intérêts et de financement restreinte ) transferred capacity  has the same meaning as in subsection 18.2(1); ( capacité transférée ) (7) Subsection 248(1) of the Act is amended by adding the following in alphabetical order: distribution equipment  has the same meaning as in subsection 1104(13) of the Income Tax Regulations ; ( matériel de distribution ) fossil fuel  has the same meaning as in subsection 1104(13) of the Income Tax Regulations ; ( combustible fossile ) transmission equipment  has the same meaning as in subsection 1104(13) of the Income Tax Regulations ; ( matériel de transmission ) (8) Subsection 248(1) of the Act is amended by adding the following in alphabetical order: employee ownership trust  means an irrevocable trust that, at all relevant times, satisfies the following conditions: (a) the trust is resident in Canada (determined without reference to subsection 94(3)),  (b) the trust is exclusively for the benefit of all individuals each of whom (i) is either (A) an employee of one or more qualifying businesses controlled by the trust (other than an employee who has not completed an applicable probationary period, which may not exceed 12 months), or (B) if the trust permits, an individual (or the estate of an individual) who is a former employee (other than a former employee who did not complete an applicable probationary period, of up to 12 months, during their employment) of one or more qualifying businesses controlled by the trust and who was an employee of the qualifying business while the trust controlled the qualifying business, (ii) does not own, directly or indirectly (other than through an interest in the trust), shares of a class of the capital stock of a qualifying business controlled by the trust, the value of which is equal to or greater than 10% of the fair market value of the class, (iii) does not own, directly or indirectly, together with any person or partnership that is related to or affiliated with the individual, shares of a class of the capital stock of a qualifying business controlled by the trust, the value of which is equal to or greater than 50% of the fair market value of the class, and (iv) immediately before the time of a qualifying business transfer to the trust, did not own, directly or indirectly, together with any person or partnership that is related to or affiliated with the individual, shares of the capital stock or indebtedness of the qualifying business, the value of which is equal to or greater than 50% of the fair market value of the shares of the capital stock and indebtedness of the qualifying business, (c) the capital and income interests of each beneficiary described in clause (b)(i)(A) or (B) are determined in the same manner as the other beneficiaries described in those clauses, as applicable, based solely on any combination of the following criteria: (i) the total hours of employment service provided by the beneficiary to the qualifying business in respect of a particular time period, (ii) the total salary, wages and other remuneration paid or payable to the beneficiary by the qualifying business in respect of a particular time period, not exceeding, for any calendar year in the particular time period, twice the first dollar amount referred to in paragraph 117(2)(e), as adjusted by section 117.1, for the year (prorated based upon the number of days of the calendar year in the particular time period), and (iii) the total period of employment service the beneficiary has provided to the qualifying business since a particular time, (d) the trustees are prohibited from exercising their discretion to act in the interest of one beneficiary (or group of beneficiaries) to the prejudice of another beneficiary (or group of beneficiaries), (e) each trustee of the trust is either a corporation resident in Canada that is licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as a trustee or an individual (other than a trust), (f) each trustee has an equal vote in the conduct of the affairs of the trust, (g) at least one-third of the trustees must be beneficiaries described in clause (b)(i)(A), (h) if any trustee is appointed (other than by an election within the last five years by the beneficiaries described in clause (b)(i)(A)), at least 60% of all trustees must be persons that deal at arm’s length with each person who has, directly or indirectly in any manner whatever, as part of a transaction or event or series of transactions or events, sold shares of a qualifying business to the trust (or to any person or partnership affiliated with the trust) prior to or in connection with the trust acquiring control of the qualifying business, (i) more than 50% of the beneficiaries of the trust described in clause (b)(i)(A) must approve each of the following transactions or events prior to their occurrence: (i) any transaction or event or series of transactions or events that causes at least 25% of the beneficiaries to lose their status as beneficiaries under clause (b)(i)(A) (unless the change in status is in respect of a termination of employment for cause), and (ii) a winding-up, amalgamation or merger of a qualifying business (other than in the course of a transaction or event or a series of transactions or events that involves only persons or partnerships that are affiliated with the qualifying business), and (j) all or substantially all the fair market value of the property of the trust is attributable to shares of the capital stock of one or more qualifying businesses that the trust controls; ( fiducie collective des employés ) qualifying business , at a particular time, means a corporation controlled by a trust (a) that is a Canadian-controlled private corporation, (b) not more than 40% of the directors of which consist of individuals that, immediately before the time that the trust acquired control of the corporation, owned, directly or indirectly, together with any person or partnership that is related to or affiliated with the director, 50% or more of the fair market value of the shares of the capital stock or indebtedness of the corporation, and (c) that deals at arm’s length and is not affiliated with any person or partnership that owned, directly or indirectly, 50% or more of the fair market value of the shares of the capital stock or indebtedness of the corporation immediately before the time the trust acquired control of the corporation; ( entreprise admissible ) qualifying business transfer  means a disposition by a taxpayer of shares of the capital stock of a corporation (in this definition referred to as the “subject corporation”) to a trust, or to a Canadian-controlled private corporation (in this definition referred to as the “purchaser corporation”) that is controlled and wholly-owned by a trust, if  (a) immediately before the disposition, all or substantially all the fair market value of the assets of the subject corporation is attributable to assets (other than an interest in a partnership) that are used principally in an active business (referred to in this definition as the “business”) carried on by the subject corporation or a corporation that is controlled and wholly-owned by the subject corporation, (b) at the time of the disposition, (i) the taxpayer deals at arm’s length with the trust and any purchaser corporation, (ii) the trust acquires control of the subject corporation, and (iii) the trust is an employee ownership trust, the beneficiaries of which are employed in the business, and (c) at all times after the disposition, (i) the taxpayer deals at arm’s length with the subject corporation, the trust and any purchaser corporation, and (ii) the taxpayer does not retain any right or influence that, if exercised, would allow the taxpayer (whether alone or together with any person or partnership that is related to or affiliated with the taxpayer) to control, directly or indirectly in any manner whatever, the subject corporation, the trust, or any purchaser corporation; ( transfert admissible d’entreprise ) (9) Paragraph 248(3.2)(d) of the Act is replaced by the following: (d) presented as an arrangement in respect of which the corporation is to take action for the arrangement to become a FHSA, a registered disability savings plan, a registered education savings plan, a registered retirement income fund, a registered retirement savings plan or a TFSA. (10) Section 248 of the Act is amended by adding the following after subsection (42): Substantive CCPC — anti-avoidance (43) For the purposes of this Act, if it is reasonable to consider that one of the purposes of any transaction (as defined in subsection 245(1)), or series of transactions, is to cause a corporation that is resident in Canada (other than a Canadian-controlled private corporation or a corporation that is, in absence of this subsection, a substantive CCPC) to avoid tax otherwise payable under section 123.3 on the corporation’s aggregate investment income, the corporation is deemed to be a substantive CCPC from the time that the transaction or series of transactions commenced until the earliest time at which the corporation (a) becomes a Canadian-controlled private corporation; (b) is subject to a loss restriction event; or (c) ceases to be resident in Canada. (11) Subsections (1) and (9) are deemed to have come into force on April 1, 2023. (12) Subsections (2), (3) and (8) come into force or are deemed to have come into force on January 1, 2024. (13) Subsection (4) is deemed to have come into force on March 28, 2023 and, for greater certainty, subsection (4) does not apply in respect of expenses incurred before March 28, 2023. (14) Subsections (5) and (10) apply to (a) taxation years of a corporation that begin on or after April 7, 2022, if (i) the corporation’s first taxation year that ends on or after April 7, 2022 ends due to a loss restriction event caused by a sale of all or substantially all of the shares of a corporation to a purchaser before 2023, (ii) the purchaser deals at arm’s length (determined without reference to a right referred to in paragraph 251(5)(b) of the Act) with the corporation immediately prior to the loss restriction event, and (iii) the sale occurs pursuant to a written purchase and sale agreement entered into before April 7, 2022; and (b) taxation years that end on or after April 7, 2022, in any other case. (15) Subsection (6) applies in respect of taxation years of a taxpayer that begin on or after October 1, 2023. However, subsection (6) also applies in respect of a taxation year that begins before, and ends after October 1, 2023 if (a) any of the taxpayer’s three immediately preceding taxation years was, because of a transaction or event or a series of transactions or events, shorter than it would have been in the absence of that transaction, event or series; and (b) it can reasonably be considered that one of the purposes of the transaction, event or series was to defer the application of paragraph 12(1)(l.2) of the Act, as enacted by subsection 2 (1), or the application of section 18.2 or 18.21 of the Act, as enacted by subsection 7 (1), to the taxpayer. (16) Subsection (7) is deemed to have come into force on March 28, 2023. 68 (1) Subsection 256(7) of the Act is amended by striking out “and” at the end of paragraph (h), by adding “and” at the end of paragraph (i), and by adding the following after paragraph (i): (j) if an employee ownership trust controls a qualifying business, control of the qualifying business is deemed not to be acquired solely because of a change in the trustee having ownership or control of the trust’s property if the trust remains an employee ownership trust immediately after the change of trustee. (2) Subsection (1) comes into force or is deemed to have come into force on January 1, 2024. 69 (1) The definition specified provision in subsection 256.1(1) of the Act is replaced by the following: specified provision  means any of subsections 10(10) and 13(24), paragraph 37(1)(h), subsections 66(11.4) and (11.5), 66.7(10) and (11), 69(11) and 111(4), (5), (5.01), (5.1) and (5.3), paragraphs (j) and (k) of the definition investment tax credit  in subsection 127(9), subsections 181.1(7) and 190.1(6) and any provision of similar effect.  ( dispositions déterminées ) (2) Subsection (1) applies in respect of taxation years of a taxpayer that begin on or after October 1, 2023. However, subsection (1) also applies in respect of a taxation year that begins before, and ends after, October 1, 2023 if (a) any of the taxpayer’s three immediately preceding taxation years was, because of a transaction or event or a series of transactions or events, shorter than it would have been in the absence of that transaction, event or series; and (b) it can reasonably be considered that one of the purposes of the transaction, event or series was to defer the application of paragraph 12(1)(l.2) of the Act, as enacted by subsection 2 (1), or the application of section 18.2 or 18.21 of the Act, as enacted by subsection 7 (1), to the taxpayer. 70 (1) Section 260 of the Act is amended by adding the following after subsection (6.2): Subsections 112(2.01) and (2.3) — ordering (6.3) For the purposes of paragraphs (6.1)(b) and (6.2)(b), the amount of any dividends received by a corporation in respect of which no amount was deductible because of subsection 112(2.3) includes an amount that was not deductible under both subsections 112(2.01) and (2.3). (2) Subsection (1) applies in respect of dividends received after 2023. R.S., c. E- 15 Excise Tax Act 71 Clause 295(5)(d)(xi.1)(A) of the Excise Tax Act is replaced by the following: (A) the Department of Employment and Social Development, the Department of Health or the Department of Public Works and Government Services, solely for the purpose of the administration or enforcement of the Canadian Dental Care Plan established under the authority of the Department of Health Act in respect of dental service for individuals, or 2002, c. 22 Excise Act, 2001 72 Clause 211(6)(e)(xii.1)(A) of the Excise Act, 2001 is replaced by the following: (A) the Department of Employment and Social Development, the Department of Health or the Department of Public Works and Government Services, solely for the purpose of the administration or enforcement of the Canadian Dental Care Plan established under the authority of the Department of Health Act in respect of dental service for individuals, or C.R.C., c. 945 Income Tax Regulations 73 (1) Paragraph 103(7)(a) of the Income Tax Regulations is amended by striking out “or” at the end of subparagraph (ii) and by adding the following after subparagraph (iii): (iv) a contribution that is an excluded contribution (as defined in subsection 207.5(1) of the Act); or (2) Subsection (1) is deemed to have come into force on March 28, 2023. 74 (1) Subsection 204(3) of the Regulations is amended by striking out “or” at the end of paragraph (f), by adding “or” at the end of paragraph (g) and by adding the following after paragraph (g): (h) governed by a FHSA. (2) Subsection (1) is deemed to have come into force on April 1, 2023. 75 (1) Subsection 205(3) of the Regulations is amended by deleting the following: First Home Savings Account (FHSA) Annual Information Return (2) Subsection 205(3) of the Regulations is amended by adding the following in alphabetical order: First Home Savings Account Statement T4FHSA (3) Subsections (1) and (2) are deemed to have come into force on April 1, 2023. 76 (1) Subsection 205.1(1) of the Regulations is amended by deleting the following: First Home Savings Account (FHSA) Annual Information Return (2) Subsection 205.‍1(1) of the Regulations is amended by adding the following in alphabetical order: First Home Savings Account Statement T4FHSA (3) Subsections (1) and (2) are deemed to have come into force on April 1, 2023. 77 (1) The portion of subsection 209(5) of the Regulations before paragraph (a) is replaced by the following: (5) A person may provide a Statement of Remuneration Paid (T4) information return, a Tuition and Enrolment Certificate, a First Home Savings Account Statement (T4FHSA) information return, a Statement of Pension, Retirement, Annuity, and Other Income (T4A) information return or a Statement of Investment Income (T5) information return, as required under subsection (1), as a single document in an electronic format (instead of the two copies required under subsection (1)) to the taxpayer to whom the return relates, on or before the date on which the return is to be filed with the Minister, unless (2) Subsection (1) is deemed to have come into force on April 1, 2023. 78 (1) Paragraph 304(1)(a) of the Regulations is replaced by the following: (a) an annuity contract that is, or is issued pursuant to, an arrangement described in any of paragraphs 148(1)(a) to (b.4) and (d) of the Act; (2) Subsection (1) is deemed to have come into force on April 1, 2023. 79 (1) Paragraph 1100(1)(a) of the Regulations is amended by striking out “and” at the end of subparagraph (xli) and by adding the following after subparagraph (xlii): (xliii) of Class 57, 8 per cent, (xliv) of Class 58, 20 per cent, (xlv) of Class 59, 100 per cent, and (xlvi) of Class 60, 30 per cent, (2) Paragraph (a) of the description of A in subsection 1100(2) of the Regulations is replaced by the following: (a) if the property is not included in paragraph (1)(v) or in any of Classes 12, 13, 14, 15, 43.1, 43.2, 53, 54, 55, 56, 59 or in Class 43 in the circumstances described in paragraph (d), (3) Subsections (1) and (2) apply to property acquired after 2021. 80 (1) The definition governing plan in subsection 4901(2) of the Regulations is replaced by the following: governing plan  means a deferred profit sharing plan or a revoked plan, a FHSA, a registered disability savings plan, a registered education savings plan, a registered retirement income fund, a registered retirement savings plan or a TFSA; ( régime d’encadrement ) (2) Subsection (1) is deemed to have come into force on April 1, 2023. 81 (1) Clause (a)(i)(I) of the definition qualified zero-emission technology manufacturing activities in section 5202 of the Regulations is replaced by the following: (I) equipment that is a component of property included in clauses (A) to (H) or (L) to (O), if such equipment is purpose-built or designed exclusively to form an integral part of that property, (2) Subparagraph (a)(i) of the definition qualified zero-emission technology manufacturing activities in section 5202 of the Regulations is amended by striking out “and” at the end of clause (J), by striking out “and” at the end of clause (K) and by adding the following after clause (K): (L) nuclear energy equipment, (M) heavy water used for nuclear energy generation, (N) nuclear fuels used for nuclear energy generation, and (O) nuclear fuel rods, and (3) Subsections (1) and (2) apply to taxation years that begin after 2023. 82 (1) The portion of subsection 5903(5) of the Regulations before paragraph (a) is replaced by the following: (5) For the purposes of this section, section 5903.1 and section 18.2 of the Act, (2) Subsection (1) applies in respect of a taxation year of a foreign affiliate of a taxpayer that ends in a taxation year of the taxpayer beginning on or after October 1, 2023. However, subsection (1) also applies in respect of a taxation year of a foreign affiliate of a taxpayer that ends in a taxation year of the taxpayer that begins before, and ends after, October 1, 2023 if (a) any of the taxpayer’s three immediately preceding taxation years was, because of a transaction or event or a series of transactions or events, shorter than it would have been in the absence of that transaction, event or series; and (b) it can reasonably be considered that one of the purposes of the transaction, event or series was to defer the application of paragraph 12(1)(l.2) of the Act, as enacted by subsection 2 (1), or the application of section 18.2 or 18.21 of the Act, as enacted by subsection 7 (1), to the taxpayer. 83 (1) Subparagraph (a)(iii) of the definition earnings in subsection 5907(1) of the Regulations is replaced by the following: (iii) in any other case, the amount that would be the income from the active business for the year under Part I of the Act if the business were carried on in Canada, the affiliate were resident in Canada and the Act were read without reference to subsections 12.7(3), 18(4), 18.4(4), 80(3) to (12), (15) and (17) and 80.01(5) to (11) and sections 80.02 to 80.04, (2) Subparagraph (a)(iii) of the definition earnings in subsection 5907(1) of the Regulations, as enacted by subsection (1), is replaced by the following: (iii) in any other case, the amount that would be the income from the active business for the year under Part I of the Act if the business were carried on in Canada, the affiliate were resident in Canada and the Act were read without reference to subsections 12.7(3), 18(4), 18.2(2), 18.4(4), 80(3) to (12), (15) and (17) and 80.01(5) to (11) and sections 80.02 to 80.04, (3) Subparagraph (iii) of the description of A in the definition exempt surplus in subsection 5907(1) of the Regulations is replaced by the following: (iii) the portion of any dividend received in the period and before the particular time by the subject affiliate from another foreign affiliate of the corporation (including, for greater certainty, any dividend deemed by subsection 5905(7) to have been received by the subject affiliate) that (A) was prescribed by paragraph 5900(1)(a) to have been paid out of the payer affiliate’s exempt surplus in respect of the corporation, (B) does not give rise to the application of subsection 12.7(3) in computing the foreign accrual property income of a foreign affiliate of a taxpayer, and (C) would not be deemed under subsection 113(5) of the Act not to be a dividend received by the subject affiliate on a share of the capital stock of the payer affiliate for the purposes of section 113 of the Act, if the subject affiliate were a corporation resident in Canada, (4) Subparagraph (iv) of the description of A in the definition hybrid surplus in subsection 5907(1) of the Regulations is replaced by the following: (iv) the portion of any dividend received in the period and before the particular time by the subject affiliate from another foreign affiliate of the corporation (including, for greater certainty, any dividend deemed under subsection 5905(7) to have been received by the subject affiliate) that (A) was prescribed under paragraph 5900(1)(a.1) to have been paid out of the payer affiliate’s hybrid surplus in respect of the corporation, (B) does not give rise to the application of subsection 12.7(3) in computing the foreign accrual property income of a foreign affiliate of a taxpayer, and (C) would not be deemed under subsection 113(5) of the Act not to be a dividend received by the subject affiliate on a share of the capital stock of the payer affiliate for the purposes of section 113 of the Act, if the subject affiliate were a corporation resident in Canada, or (5) Paragraph (b) of the definition net earnings in subsection 5907(1) of the Regulations is replaced by the following: (b) in respect of foreign accrual property income is the amount that would be its foreign accrual property income for the year, if the formula in the definition foreign accrual property income in subsection 95(1) of the Act were read without reference to F and F.1 in that formula and the amount determined for E in that formula were the amount determined under paragraph (a) of the description of E in that formula and the Act were read without regard to its clause 95(2)(f.11)(ii)(D), minus the portion of any income or profits tax paid to the government of a country for the year by the affiliate that can reasonably be regarded as tax in respect of that income, (6) Subclause (b)(i)(A)(I) of the definition net loss in subsection 5907(1) of the Regulations is replaced by the following: (I) the amount that would be determined for D in the formula in the definition foreign accrual property income in subsection 95(1) of the Act for the year, if the Act were read without regard to its clauses 95(2)(f.11)(ii)(D) and (E), (7) Subparagraph (iii) of the description of A in the definition taxable surplus in subsection 5907(1) of the Regulations is replaced by the following: (iii) the portion of any dividend received in the period and before the particular time by the subject affiliate from another foreign affiliate of the corporation (including, for greater certainty, any dividend deemed by subsection 5905(7) to have been received by the subject affiliate) that (A) was prescribed by paragraph 5900(1)(b) to have been paid out of the payer affiliate’s taxable surplus in respect of the corporation, (B) does not give rise to the application of subsection 12.7(3) in computing the foreign accrual property income of a foreign affiliate of a taxpayer, and (C) would not be deemed under subsection 113(5) of the Act not to be a dividend received by the subject affiliate on a share of the capital stock of the payer affiliate for the purposes of section 113 of the Act, if the subject affiliate were a corporation resident in Canada, (8) Subsection (1) applies in respect of payments arising on or after July 1, 2022. (9) Subsections (2), (5) and (6) apply in respect of a taxation year of a foreign affiliate of a taxpayer that ends in a taxation year of the taxpayer beginning on or after October 1, 2023. However, subsections (2), (5) and (6) also apply in respect of a taxation year of a foreign affiliate of a taxpayer that ends in a taxation year of the taxpayer that begins before, and ends after, October 1, 2023 if (a) any of the taxpayer’s three immediately preceding taxation years was, because of a transaction or event or a series of transactions or events, shorter than it would have been in the absence of that transaction, event or series; and (b) it can reasonably be considered that one of the purposes of the transaction, event or series was to defer the application of paragraph 12(1)(l.2) of the Act, as enacted by subsection 2 (1), or the application of section 18.2 or 18.21 of the Act, as enacted by subsection 7 (1), to the taxpayer. (10) Subsections (3), (4) and (7) apply in respect of any dividend received on or after July 1, 2024. 84 (1) Section 9005 of the Regulations is amended by striking out “and” at the end of paragraph (n), by adding “and” at the end of paragraph (o) and by adding the following after paragraph (o): (p) a FHSA. (2) Subsection (1) is deemed to have come into force on April 1, 2023. 85 (1) Section 9006 of the Regulations is amended by striking out “and” at the end of paragraph (j), by adding “and” at the end of paragraph (k) and by adding the following after paragraph (k): (l) a FHSA. (2) Subsection (1) is deemed to have come into force on April 1, 2023. 86 (1) The portion of Class 8 in Schedule II to the Regulations after the heading “(20 per cent)” and before paragraph (a) is replaced by the following: Property not included in Class 1, 2, 7, 9, 11, 17, 30, 57 or 58 that is (2) Subsection (1) is deemed to have come into force on January 1, 2022. 87 (1) The portion of Class 17 in Schedule II to the Regulations after the heading “(8 per cent)” and before paragraph (a) is replaced by the following: Property that would otherwise be included in another class in this Schedule (other than property included in Class 57 or 58) that is (2) Subsection (1) is deemed to have come into force on January 1, 2022. 88 (1) The portion of Class 41 in Schedule II to the Regulations after the heading “Class 41” and before paragraph (a) is replaced by the following: Property (other than property included in Class 41.1, 41.2, 57 or 58) (2) Subsection (1) is deemed to have come into force on January 1, 2022. 89 (1) The portion of Class 41.1 in Schedule II to the Regulations after the heading “Class 41.1” and before paragraph (a) is replaced by the following: Oil sands property (other than specified oil sands property or property included in Class 57 or 58) that (2) Subsection (1) is deemed to have come into force on January 1, 2022. 90 (1) The portion of Class 41.2 in Schedule II to the Regulations after the heading “Class 41.2” and before paragraph (a) is replaced by the following: Property, other than specified oil sands property, eligible mine development property or property included in Class 57 or 58, (2) Subsection (1) is deemed to have come into force on January 1, 2022. 91 (1) The portion of Class 43 in Schedule II to the Regulations after the heading “Class 43” and before paragraph (a) is replaced by the following: Property acquired after February 25, 1992 (other than property included in Class 57 or 58) that (2) Subsection (1) is deemed to have come into force on January 1, 2022. 92 (1) The portion of clause (d)(xviii)(A) of Class 43.1 in Schedule II to the Regulations before subclause (I) is replaced by the following: (A) is used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of storing and discharging electrical energy (2) Subclause (d)(xviii)(B)(I) of Class 43.1 in Schedule II to the Regulations is replaced by the following: (I) the electrical energy to be stored and discharged is generated from other property that is described in paragraph (c) or in any other subparagraph of this paragraph, or (3) The portion of subparagraph (d)(xix) of Class 43.1 in Schedule II to the Regulations before clause (A) is replaced by the following: (xix) a pumped hydroelectric energy storage installation all or substantially all of the use of which by the taxpayer, or by a lessee of the taxpayer, is to store and discharge electrical energy including reversing turbines, transmission equipment, dams, reservoirs and related structures, and that meets the condition in either subclause (d)(xviii)(B)(I) or (II) in this Class, but not including (4) Subparagraph (e)(i) of Class 43.1 in Schedule II to the Regulations is replaced by the following: (i) is situated in Canada, including property described in subparagraph (d)(v) or (d)(xiv) that is installed in the exclusive economic zone of Canada, 93 (1) The portion of Class 49 in Schedule II to the Regulations after the heading “Class 49” and before paragraph (a) is replaced by the following: Property (other than property included in Class 57 or 58) that is a pipeline, including control and monitoring devices, valves and other equipment ancillary to the pipeline, that (2) Subsection (1) is deemed to have come into force on January 1, 2022. 94 (1) The portion of Class 53 in Schedule II to the Regulations after the heading “Class 53” and before paragraph (a) is replaced by the following: Property acquired after 2015 and before 2026 (other than property included in Class 57 or 58) that is not included in Class 29, but that would otherwise be included in that class if (2) Subsection (1) is deemed to have come into force on January 1, 2022. 95 (1) Schedule II to the Regulations is amended by adding the following after Class 56: CLASS 57 Property that is part of a CCUS project of a taxpayer and that is (a) equipment that is not expected to be used for hydrogen production, natural gas processing or acid gas injection and that (i) is not oxygen production equipment and is to be used solely for capturing carbon dioxide (A) that would otherwise be released into the atmosphere, or (B) directly from the ambient air, (ii) prepares or compresses captured carbon for transportation, (iii) generates or distributes electrical energy, heat energy or a combination of electrical and heat energy, that directly and solely supports a qualified CCUS project, unless the equipment uses fossil fuels and emits carbon dioxide that is not subject to capture by a qualified CCUS project, and for greater certainty, not including equipment that supports the qualified CCUS project indirectly by way of an electrical utility grid or distribution equipment that expands the capacity of existing distribution equipment that supports the qualified CCUS project, (iv) is transmission equipment that solely supports a qualified CCUS project by directly transmitting electrical energy from electrical generation equipment described in subparagraph (a)(iii) to the qualified CCUS project, or (v) delivers, collects, recovers, treats or recirculates water, or a combination of any of those activities, that solely supports a qualified CCUS project; (b) equipment that is to be used solely for transportation of captured carbon, including equipment used for the transportation system safety and integrity; (c) equipment that is to be used solely for storage of captured carbon in a geological formation, including equipment used for the storage system safety and integrity, but not including equipment used for enhanced oil recovery; (d) property that is physically and functionally integrated with the equipment described in any of paragraphs (a) to (c) (for greater certainty, excluding construction equipment, furniture, office equipment and vehicles) and that is ancillary equipment used solely to support the functioning of equipment described in any of paragraphs (a) to (c) within a CCUS process as part of (i) an electrical system, (ii) a fuel supply system, (iii) a liquid delivery and distribution system, (iv) a cooling system, (v) a process material storage and handling and distribution system, (vi) a process venting system, (vii) a process waste management system, or (viii) a utility air or nitrogen distribution system; (e) equipment used for system safety and integrity or as part of a control or monitoring system solely to support the equipment described in any of paragraphs (a) to (d); or (f) a building or other structure all or substantially all of which is used, or to be used, for the installation or operation of equipment described in any of paragraphs (a) to (e); or (g) property that is used solely to (i) convert another property that would not otherwise be described in any of paragraphs (a) to (f) if the conversion causes the other property to satisfy the description in any of paragraphs (a) to (f), or (ii) refurbish property described in any of paragraphs (a) to (f) that is part of a CCUS project of the taxpayer. CLASS 58 Property that is part of a CCUS project of a taxpayer, and that is (a) equipment to be used solely for using captured carbon in industrial production (including for enhanced oil recovery); (b) property that is physically and functionally integrated with the equipment described in paragraph (a) (for greater certainty, excluding construction equipment, furniture, office equipment and vehicles) and that is ancillary equipment used solely to support the functioning of equipment described in paragraph (a) within a CCUS process as part of (i) an electrical system, (ii) a fuel supply system, (iii) a liquid delivery and distribution system, (iv) a cooling system, (v) a process material storage and handling and distribution system, (vi) a process venting system, (vii) a process waste management system, or (viii) a utility air or nitrogen distribution system; (c) equipment used as part of a control, monitoring or safety system solely to support the equipment described in paragraph (a) or (b); (d) a building or other structure all or substantially all of which is used, or to be used, for the installation or operation of equipment described in any of paragraphs (a) to (c); or (e) property that is used solely to (i) convert another property that would not otherwise be described in any of paragraphs (a) to (d) if the conversion causes the other property to satisfy the description in any of paragraphs (a) to (d), or (ii) refurbish property described in any of paragraphs (a) to (d) that is part of a CCUS project of the taxpayer. CLASS 59 Intangible property (including property deemed to have been acquired under subsection 13(7.6) of the Act) that is not included in any other class and that is (a) acquired for the purpose of determining the existence, location, extent or quality of a geological formation to permanently store captured carbon (other than for enhanced oil recovery) in Canada, including property acquired as a result of undertaking environmental studies or community consultations (including studies or consultations that are undertaken to obtain a right, licence or privilege for the purpose of determining the existence, location, extent or quality of a geological formation to permanently store captured carbon (other than for enhanced oil recovery)); and (b) not acquired for the purpose of drilling or completing an oil or gas well or in building a temporary access road to, or preparing a site in respect of, any such well. CLASS 60 Intangible property (including property deemed to have been acquired under subsection 13(7.6) of the Act) not included in any other class that is (a) acquired for the purposes of (i) drilling or converting a well in Canada for the permanent storage of captured carbon (other than for enhanced oil recovery), (ii) drilling or completing a well for the permanent storage of captured carbon (other than for enhanced oil recovery) in Canada, building a temporary access road to the well or preparing a site in respect of the well, or (iii) drilling or converting a well in Canada for the purposes of monitoring pressure changes or other phenomena in a geological formation in which captured carbon is permanently stored (other than for enhanced oil recovery); or (b) a right, licence or privilege (i) for the purposes of determining the existence, location, extent or quality of a geological formation to permanently store captured carbon (other than for enhanced oil recovery), or (ii) to permanently store captured carbon in dedicated geological storage. (2) Subsection (1) is deemed to have come into force on January 1, 2022. PART 2 Digital Services Tax Act Enactment of Act Enactment 96 (1) The Digital Services Tax Act is enacted as follows: An Act respecting a digital services tax Short Title Short title 1 This Act may be cited as the Digital Services Tax Act . PART 1 Interpretation and Application Definitions 2 The following definitions apply in this Act. acceptable accounting principles  means (a) International Financial Reporting Standards; and (b) other country-specific generally accepted accounting principles relevant for corporations that are traded on a public securities exchange outside Canada and that require two or more entities to prepare consolidated financial statements in a manner similar to International Financial Reporting Standards. ( principes comptables acceptables ) assessment  means an assessment or a reassessment under this Act. ( cotisation ) bankrupt  has the same meaning as in section 2 of the Bankruptcy and Insolvency Act . ( failli ) Canadian digital services revenue  means a taxpayer’s Canadian digital services revenue determined in accordance with Part 3. ( revenu canadien de services numériques ) consolidated financial statements  means financial statements in which the assets, liabilities, income, expenses and cash flows of the members of a group are presented as those of a single economic entity. ( états financiers consolidés ) consolidated group  means an ultimate parent entity and one or more other entities that are required to prepare consolidated financial statements for financial reporting purposes under acceptable accounting principles, or would be so required if equity interests in the ultimate parent entity were traded on a public securities exchange, the trading on which requires the use of acceptable accounting principles. ( groupe consolidé ) constituent entity , of a consolidated group, means (a) any entity of the group that (i) is included in the consolidated financial statements of the group prepared in accordance with acceptable accounting principles, or (ii) if the group is not required to prepare consolidated financial statements, or the statements are not prepared in accordance with acceptable accounting principles, would be required to be included in the consolidated financial statements of the group if equity interests in the ultimate parent entity of the group were traded on a public securities exchange, the trading on which requires the use of acceptable accounting principles; and (b) any entity that is excluded from the group’s consolidated financial statements solely because of size or materiality or on the grounds that it is held for sale. ( entité constitutive ) digital content  means (a) a digitally encoded text, video, image or sound recording; (b) computer software; or (c) any other thing that is digitally encoded and electronically transmittable. It does not include a financial instrument. ( contenu numérique ) digital interface  means a website, application or other electronic medium through which data or digital content is collected, viewed, consumed, delivered or interacted with. ( interface numérique ) entity  means a person other than an individual. ( entité ) financial instrument  means (a) a security that is (i) a share of the capital stock of a corporation, (ii) an income or capital interest in a trust, (iii) a note, bond, debenture or other evidence of indebtedness, or (iv) an interest in a partnership; (b) money and a money market instrument that is a cheque, bill, certificate of deposit or derivative; (c) property that is a digital representation of value that functions as a medium of exchange and that only exists at a digital address of a publicly distributed ledger, other than property that (i) confers a right, whether immediate or future and whether absolute or contingent, to exchange or redeem the property for specific property or services or to convert the property into specific property or services, (ii) is primarily for use within, or as part of, a gaming platform, an affinity or rewards program or a similar platform or program, or (iii) is property prescribed by regulation; (d) an insurance contract; (e) an annuity contract; (f) a precious metal; (g) a commodity; (h) an interest rate swap, currency swap, basis swap, interest rate cap, interest rate floor, commodity swap, equity swap, equity index swap or other similar agreement; (i) a guarantee, acceptance or indemnity in respect of anything described in paragraph (a), (f), (g) or (h); (j) any interest or right (including a futures or forward contract or option) in a future supply of anything described in any of paragraphs (a) to (i); and (k) any other property prescribed by regulation. ( effet financier ) first year of application  means the calendar year that includes the day on which this Act comes into force or a subsequent calendar year, if any, prescribed by regulation in respect of a taxpayer. ( première année d’application ) fiscal year  means (a) in the case of a taxpayer, an accounting period with respect to which the taxpayer prepares its financial statements; and (b) in the case of a consolidated group, an accounting period with respect to which the ultimate parent entity of the group prepares its financial statements. ( exercice ) global revenue threshold  means an amount prescribed by regulation. ( seuil de revenu global ) in-scope revenue threshold  means an amount prescribed by regulation. ( seuil de revenu dans le champ d’application ) Minister  means the Minister of National Revenue. ( ministre ) online marketplace  means a digital interface that allows users to interact with other users and facilitates the supply of property or services, including digital content, between those users, but does not include a digital interface (a) that has a single supplier of such property or services; or (b) the main purpose of which is to (i) provide payment services by facilitating the electronic transfer of funds, (ii) make advances, grant credit or lend money, or (iii) facilitate the supply of financial instruments. ( marché en ligne ) online search engine  means a digital interface that allows users to search the Web for digital content of multiple unrelated websites. ( moteur de recherche en ligne ) online targeted advertisement  means an advertisement — including, for greater certainty, any content that is prominently placed for the purpose of promotion — that (a) consists of digital content; (b) is placed on, or transmitted through, a digital interface; and (c) is targeted at users based on any part of the user data associated with the users. ( publicité en ligne ciblée ) person  includes an individual, a trust, a partnership, a corporation and any other body of persons or organization of any kind. ( personne ) prescribed  means (a) in the case of a form or the manner of filing a form, authorized by the Minister; (b) in the case of the information to be given on or with a form, specified by the Minister; (c) in the case of the manner of making or filing an election, authorized by the Minister; and (d) in any other case, prescribed by regulation or determined in accordance with rules prescribed by regulation. ( Version anglaise seulement ) property  means any property, whether real or personal, movable or immovable, tangible or intangible or corporeal or incorporeal, and includes a right or interest of any kind, a share, a chose in action and, for greater certainty, money. ( bien ) regulation  means a regulation made under this Act. ( règlement ) social media platform  means a digital interface the main purpose of which is to allow users to find and interact with other users or with digital content generated by other users. ( plateforme de médias sociaux ) supply  means the provision of property or a service in any manner, including sale, transfer, barter, exchange, licence, rental, lease, gift or disposition. ( fourniture ) taxable Canadian digital services revenue  means a taxpayer’s taxable Canadian digital services revenue determined in accordance with Part 4. ( revenu canadien de services numériques imposable ) taxpayer  means an entity, whether or not the entity is liable to pay tax under this Act, that is not a corporation, commission or association all of the shares, or the capital, of which is held, directly or indirectly, by one or more persons each of whom is His Majesty in right of Canada or a province. ( contribuable ) total consolidated group revenue , of a consolidated group for a fiscal year, means the revenue reported in the group’s consolidated financial statements for the year or, if the statements are not prepared in accordance with acceptable accounting principles or no statements are prepared, the revenue that would be reported if the statements were prepared in accordance with International Financial Reporting Standards. However, total consolidated group revenue does not include the revenue of any entity that is not a taxpayer. ( revenu consolidé total du groupe ) ultimate parent entity  means an entity in respect of which the following conditions are met:  (a) the entity holds directly or indirectly a sufficient interest in one or more other entities so that it is required to prepare consolidated financial statements under acceptable accounting principles or would be so required if the equity interests in the entity were traded on a public securities exchange, the trading on which requires the use of acceptable accounting principles; and (b) no other entity holds, directly or indirectly, an interest, as described in paragraph (a), in the entity. ( entité mère ultime ) user  means any individual (other than an individual acting in the course of an entity’s business) or entity (including an individual acting in the course of the entity’s business) that interacts (directly or indirectly in any manner whatever) with a digital interface, but does not include (a) the person that operates the digital interface; (b) if an entity operates the digital interface and the entity is a constituent entity of a consolidated group, another constituent entity of the group; or (c) an employee of an individual or entity described in paragraph (a) or (b) acting in the course of the individual’s or entity’s business. ( utilisateur ) user data  means representations, in any form, of information or concepts generated by, or collected from, a user’s interaction (directly or indirectly in any manner whatever) with a digital interface. ( données d’utilisateurs ) Negative or undefined results 3 An amount or number that is required under this Act to be determined in accordance with an algebraic formula is deemed to be nil if (a) the amount or number so determined would, in the absence of this section, be a negative amount or number; or (b) the result of the formula would be mathematically undefined. Determination of revenue 4 (1) For the purposes of this Act, revenue of a taxpayer is to be determined in accordance with the acceptable accounting principles used in the preparation of the financial statements of the taxpayer or, if the statements are not prepared in accordance with acceptable accounting principles or no statements are prepared, in accordance with (a) in the case of a taxpayer that is a constituent entity of a consolidated group, (i) the acceptable accounting principles, if any, used in the preparation of the consolidated financial statements of the group, or (ii) International Financial Reporting Standards; and (b) in any other case, International Financial Reporting Standards. Currency of revenue — conversion (2) For the purposes of Part 2, if total revenue or total consolidated group revenue is expressed in a particular currency other than the currency in which the global revenue threshold is denominated, the amount is to be converted from the particular currency to that other currency using a rate of exchange that is acceptable to the Minister. Currency of revenue — Canadian dollar conversion (3) For the purposes of Part 3, if an amount of revenue is expressed in a currency other than Canadian dollars, the amount is to be converted from that currency to Canadian dollars using a rate of exchange that is acceptable to the Minister. Short fiscal year — global revenue threshold 5 For the purposes of this Act, if a fiscal year is shorter than 12 months, a reference to the “global revenue threshold” in respect of the fiscal year is to be read as a reference to the amount determined by the formula A × B ÷ 365 where A is the global revenue threshold; and B is the number of days in the fiscal year. Continuity of consolidated group 6 For the purposes of this Act, a consolidated group, at any time, is the same consolidated group at another time if at both times, and all times between those times, the ultimate parent entity of the group is the same. Mergers 7 If, in a calendar year, there is a merger or combination of two or more corporations (referred to in this section as the “predecessor corporations”) to form one corporate entity (referred to in this section as the “new corporation”), (a) for the purposes of this Act, subject to paragraphs (b) and (c), the new corporation is deemed to be a separate person from each of the predecessor corporations; (b) for the purposes of Part 6, the new corporation is deemed to be the same corporation as and a continuation of each predecessor corporation; and (c) for the purposes of section 6 , (i) if only one of the predecessor corporations is an ultimate parent entity of a consolidated group, the new corporation is deemed to be the same corporation as the ultimate parent entity, and (ii) if two or more of the predecessor corporations are each an ultimate parent entity of a consolidated group, the new corporation is deemed to be the same corporation as the ultimate parent entity of the consolidated group that had the greatest amount of total consolidated group revenue for a fiscal year of the group that ended in the immediately preceding calendar year. Arm’s length 8 (1) For the purposes of this Act, (a) related persons are deemed not to deal with each other at arm’s length; and (b) it is a question of fact whether persons not related to each other are, at any time, dealing with each other at arm’s length. Related persons (2) For the purposes of this Act, persons are related to each other if they are related persons within the meaning of subsection 6(2) of the Excise Act, 2001 . His Majesty 9 This Act is binding on His Majesty in right of Canada or a province. PART 2 Liability for Tax Tax payable 10 (1) Every taxpayer must pay a tax in respect of a particular calendar year (other than the first year of application) equal to 3% of the taxpayer’s taxable Canadian digital services revenue for the particular calendar year if (a) the taxpayer (i) had total revenue equal to or greater than the global revenue threshold during a fiscal year of the taxpayer that ended in the immediately preceding calendar year, (ii) was, at any time in the immediately preceding calendar year, a constituent entity of a consolidated group that had total consolidated group revenue equal to or greater than the global revenue threshold during a fiscal year of the group that ended in that immediately preceding calendar year, or (iii) is, at any time in the particular calendar year, a constituent entity of a consolidated group that had total consolidated group revenue equal to or greater than the global revenue threshold during a fiscal year of the group that ended in the immediately preceding calendar year; and (b) at least one of the following conditions is met: (i) the Canadian digital services revenue of the taxpayer for the particular calendar year is greater than the in-scope revenue threshold, and (ii) in respect of any consolidated group of which the taxpayer is a constituent entity at any time in the particular calendar year, the total of all amounts — each of which is the Canadian digital services revenue for the particular calendar year of an entity that is a constituent entity of the group at any time in the particular calendar year — is greater than the in-scope revenue threshold. Tax payable for first year of application (2) A taxpayer must pay, in respect of the first year of application, a tax equal to the amount determined by the formula A + B where A is (a) 3% of the taxpayer’s taxable Canadian digital services revenue for the first year of application, if the taxpayer satisfies the conditions set out in paragraphs (1)(a) and (b) in respect of that year, and (b) nil, in any other case; and B is (a) the amount determined by multiplying the rate prescribed by regulation in respect of the taxpayer by the total of all amounts each of which is the taxpayer’s taxable Canadian digital services revenue for a calendar year (i) for which the taxpayer satisfies the conditions set out in paragraphs (1)(a) and (b), and (ii) that is after 2021 and before the first year of application, and (b) nil, if no calendar year meets the conditions set out in subparagraphs (a)(i) and (ii). PART 3 Canadian Digital Services Revenue Definitions 11 The following definitions apply in this Part. user located in Canada , at any time, means a user in respect of which it is reasonable to conclude — based on the taxpayer’s user data associated with the user (including any of the billing, delivery or shipping address, or the phone number area code, most recently provided by the user, global navigation satellite systems data and Internet Protocol address data) — that the user is  (a) located in Canada at that time, in the case of (i) online advertising services revenue that is in respect of an online targeted advertisement for which the targeting is based on the real-time location of users, and (ii) user data revenue that is based on the real-time location of users; and (b) normally located in Canada at that time, in any other case. ( utilisateur situé au Canada ) user located outside Canada , at any time, means a user (other than a user located in Canada) in respect of which it is reasonable to conclude — based on the taxpayer’s user data associated with the user (including any of the billing, delivery or shipping address, or the phone number area code, most recently provided by the user, global navigation satellite systems data and Internet Protocol address data) — that the user is  (a) located outside Canada at that time, in the case of (i) online advertising services revenue that is in respect of an online targeted advertisement for which the targeting is based on the real-time location of users, and (ii) user data revenue that is based on the real-time location of users; and (b) normally located outside Canada at that time, in any other case. ( utilisateur situé à l’extérieur du Canada ) user of determinable location , at any time, means a user that is, at that time, a user located in Canada or a user located outside Canada. ( utilisateur dont l’emplacement est déterminable ) Basic rule 12 (1) A taxpayer’s Canadian digital services revenue for a calendar year is the amount determined by the formula A + B + C + D where A is the taxpayer’s Canadian online marketplace services revenue for the calendar year as determined in accordance with Division A of this Part; B is the taxpayer’s Canadian online advertising services revenue for the calendar year as determined in accordance with Division B of this Part; C is the taxpayer’s Canadian social media services revenue for the calendar year as determined in accordance with Division C of this Part; and D is the taxpayer’s Canadian user data revenue for the calendar year as determined in accordance with Division D of this Part. Election (2) Despite subsection (1), a taxpayer may elect in respect of a particular calendar year that is before the first year of application (by making an election on or before June 30 of the calendar year following the first year of application in the form and manner, and containing the information, prescribed by the Minister) that subsection (1) not to apply in respect of the particular calendar year, and that the taxpayer’s Canadian digital services revenue for the particular calendar year to be determined by the formula A ÷ B × C where A is the taxpayer’s Canadian digital services revenue for the first year of application; B is the taxpayer’s total revenue for the first year of application; and C is the taxpayer’s total revenue for the particular calendar year. Election — restriction (3) A taxpayer is not permitted to elect under subsection (2) in respect of a particular calendar year after 2022 if the taxpayer did not make an election under subsection (2) for a calendar year after 2021 that precedes the particular calendar year and for which the conditions set out in paragraphs 10(1)(a) and (b) are met. DIVISION A Canadian Online Marketplace Services Revenue Definition of online marketplace services revenue 13 (1) In this Part and Part 5 and subject to subsection (2) and Division E, online marketplace services revenue , of a taxpayer, means revenue earned by the taxpayer in respect of an online marketplace of the taxpayer (or of another constituent entity of a consolidated group of which the taxpayer is, at the time the revenue is earned, a constituent entity) from (a) the provision of access to, or the use of, the online marketplace; (b) commissions and other fees for the facilitation of a supply between users of the online marketplace and for services ancillary to the supply; (c) the provision of premium services, preferential listing services and other optional enhancements to the basic function, or changes to the standard commercial terms, of the services provided in respect of the online marketplace; and (d) sources prescribed by regulation. Interpretation — revenue exclusion (2) For the purpose of the definition online marketplace services revenue in subsection (1), revenue earned by a taxpayer in respect of an online marketplace does not include revenue (a) from the provision of storage or shipping services, to the extent that the revenue reflects a reasonable rate of remuneration for the service; (b) earned from a constituent entity of a consolidated group if, at the time the revenue is earned, the taxpayer is a constituent entity of the group; or (c) from sources prescribed by regulation. Canadian online marketplace services revenue 14 A taxpayer’s Canadian online marketplace services revenue for a calendar year is the amount determined by the formula A + B + C where A is the total of all amounts each of which is an amount of online marketplace services revenue of the taxpayer for the calendar year that is in respect of a supply, between users of an online marketplace, of a service (a) physically performed and received in Canada, (b) in respect of real property situated in Canada, or (c) in respect of tangible personal property that is normally situated in Canada and that is situated in Canada at the time the service is performed; B is the total of all amounts each of which is an amount, in respect of a supply between users of an online marketplace (other than a supply that would be a supply described in paragraph (a) of the description of A if the reference to “Canada” were read as a reference to “the same country”, paragraph (b) of the description of A if the reference to “Canada” were read as a reference to “any country” or paragraph (c) of the description of A if the first reference to “Canada” were read as a reference to “any country” and the second reference to “Canada” were read as a reference to “that country”), determined by the formula D × E ÷ 2 where D is the taxpayer’s online marketplace services revenue for the calendar year that is in respect of the supply, and E is (a) 2, if each of the supplier and the purchaser in respect of the supply is, at the time of the supply, a user located in Canada, (b) 1, if only the supplier or only the purchaser in respect of the supply is, at the time of the supply, a user located in Canada, and (c) nil, in any other case; and C is the total of all amounts each of which is an amount, in respect of an online marketplace, determined by the formula F × G ÷ H where F is the taxpayer’s online marketplace services revenue (other than revenue that is in respect of a supply between users) for the calendar year that is in respect of the online marketplace, G is the total number of relevant users in respect of supplies between users of the online marketplace during the calendar year (or, in the case of a taxpayer to which section 21 applies, during the in-scope period of the taxpayer), where the number of relevant users in respect of any supply is (a) 2, if each of the supplier and the purchaser in respect of the supply is, at the time of the supply, a user located in Canada, (b) 1, if only the supplier or only the purchaser in respect of the supply is, at the time of the supply, a user located in Canada, and (c) nil, in any other case, and H is the total number of relevant users in respect of supplies between users of the online marketplace during the calendar year (or, in the case of a taxpayer to which section 21 applies, during the in-scope period of the taxpayer), where the number of relevant users in respect of any supply is (a) 2, if each of the supplier and the purchaser in respect of the supply is, at the time of the supply, a user of determinable location, (b) 1, if only the supplier or only the purchaser in respect of the supply is, at the time of the supply, a user of determinable location, and (c) nil, in any other case. DIVISION B Canadian Online Advertising Services Revenue Definition of online advertising services revenue 15 (1) In this Part and Part 5 and subject to subsection (2) and Division E, online advertising services revenue , of a taxpayer, means revenue earned by the taxpayer from (a) the facilitation through a digital interface of the delivery of an online targeted advertisement; (b) the supply of digital space for an online targeted advertisement; and (c) sources prescribed by regulation in respect of online targeted advertisements. Interpretation — revenue exclusion (2) For the purpose of the definition online advertising services revenue in subsection (1), revenue earned by a taxpayer does not include revenue (a) described in any of paragraphs 13 (1)(a) to (d); (b) in respect of an online targeted advertisement to the extent of any payment made by the taxpayer (or by another constituent entity of a consolidated group, if at the time the revenue is earned, the taxpayer is a constituent entity of the group) to another entity if the payment (i) is in respect of the online targeted advertisement, and (ii) would be online advertising services revenue of the other entity, if this section were read without reference to this paragraph or to section 21 ; (c) earned from a constituent entity of a consolidated group if, at the time the revenue is earned, the taxpayer is a constituent entity of the group; or (d) from sources prescribed by regulation. Canadian online advertising services revenue 16 A taxpayer’s Canadian online advertising services revenue for a calendar year is the amount determined by the formula A + B where A is the total of all amounts each of which is an amount of online advertising services revenue of the taxpayer for the calendar year that is directly attributable to an instance of a display of an online targeted advertisement to a user, or an instance of a user’s interaction with an online targeted advertisement, if the user is a user located in Canada at the time of the display or interaction; and B is the total of all amounts each of which is an amount in respect of an online targeted advertisement (other than an advertisement for which revenue of the taxpayer is directly attributable to an instance of a display of the advertisement to a user or directly attributable to an instance of a user’s interaction with the advertisement, if the user is a user of determinable location at the time of the display or interaction) determined by the formula C × D ÷ E where C is the taxpayer’s online advertising services revenue for the calendar year that is in respect of the online targeted advertisement, D is the number of times during the calendar year (or, in the case of a taxpayer to which section 21 applies, during the in-scope period of the taxpayer) that the online targeted advertisement is displayed to a user that is, at the time of display, a user located in Canada, and E is the number of times during the calendar year (or, in the case of a taxpayer to which section 21 applies, during the in-scope period of the taxpayer) that the online targeted advertisement is displayed to a user that is, at the time of display, a user of determinable location. DIVISION C Canadian Social Media Services Revenue Definition of social media services revenue 17 (1) In this Part and Part 5 and subject to subsection (2) and Division E, social media services revenue , of a taxpayer, means revenue earned by the taxpayer in respect of a social media platform of the taxpayer (or of another constituent entity of a consolidated group of which the taxpayer is, at the time the revenue is earned, a constituent entity) from (a) the provision of access to, or the use of, the social media platform; (b) the provision of premium services and other optional enhancements to the basic function, or changes to the standard commercial terms, of the services provided in respect of the social media platform; (c) the facilitation of an interaction between users, or between a user and digital content generated by other users, on the social media platform; and (d) sources prescribed by regulation. Interpretation — revenue exclusion (2) For the purpose of the definition social media services revenue in subsection (1), revenue earned by a taxpayer in respect of a social media platform does not include revenue (a) described in any of paragraphs 13 (1)(a) to (d) and 15 (1)(a) to (c); (b) from the provision of private communication services comprised of any combination of video calling, voice calling, email or instant messaging, if the sole purpose of the platform is to provide those services; (c) earned from a constituent entity of a consolidated group if, at the time the revenue is earned, the taxpayer is a constituent entity of the group; or (d) from sources prescribed by regulation. Canadian social media services revenue 18 A taxpayer’s Canadian social media services revenue for a calendar year is the total of all amounts each of which is an amount, in respect of a social media platform, determined by the formula A × B ÷ C where A is the taxpayer’s social media services revenue for the calendar year that is in respect of the social media platform; B is the total number of social media accounts on the social media platform that are accessed at any time during the calendar year (or, in the case of a taxpayer to which section 21 applies, during the in-scope period of the taxpayer) by a user that is, at that time, a user located in Canada; and C is the total number of social media accounts on the social media platform that are accessed at any time during the calendar year (or, in the case of a taxpayer to which section 21 applies, during the in-scope period of the taxpayer) by a user that is, at that time, a user of determinable location. DIVISION D Canadian User Data Revenue Definition of user data revenue 19 (1) In this Part and Part 5 and subject to subsection (2) and Division E, user data revenue , of a taxpayer, means revenue earned by the taxpayer in respect of user data collected from a user by the taxpayer (or collected from a user by another constituent entity of a consolidated group of which the taxpayer is, at the time the taxpayer obtains access to the data, a constituent entity) from (a) if the user data is collected from an online marketplace, a social media platform or an online search engine, (i) the sale of the user data, or (ii) the granting of access to the user data; and (b) sources prescribed by regulation. Interpretation — revenue exclusion (2) For the purpose of the definition user data revenue in subsection (1), revenue earned by a taxpayer in respect of user data does not include revenue (a) described in any of paragraphs 13 (1)(a) to (d), 15 (1)(a) to (c) and 17 (1)(a) to (d); (b) earned from a constituent entity of a consolidated group if, at the time the revenue is earned, the taxpayer is a constituent entity of the group; or (c) from sources prescribed by regulation. Canadian user data revenue 20 A taxpayer’s Canadian user data revenue for a calendar year is the amount determined by the formula A + B where A is the total of all amounts each of which is an amount of the taxpayer’s user data revenue for the calendar year that is in respect of the user data of a single user that is, at the time the user data is collected, a user located in Canada; and B is the total of all amounts each of which is an amount, in respect of a set of user data of multiple users, determined by the formula C × D ÷ E where C is the taxpayer’s user data revenue (other than revenue that is in respect of the user data of a single user that is, at the time the user data is collected, a user of determinable location) for the calendar year that is in respect of the set of user data, D is the number of users to which the set of user data relates that are, at the time the user data is collected, a user located in Canada, and E is the number of users to which the set of user data relates that are, at the time the user data is collected, a user of determinable location. DIVISION E Rules Relating to Determination of Canadian Digital Services Revenue Revenue of new constituent entities 21 (1) If a taxpayer meets the condition set out in subparagraph 10 (1)(a)(iii) for a particular calendar year, and does not meet at least one of the conditions set out in subparagraphs 10 (1)(a)(i) and (ii) for the particular calendar year, then online marketplace services revenue, online advertising services revenue, social media services revenue and user data revenue of the taxpayer for the particular calendar year do not include revenue earned by the taxpayer before the first moment in the particular calendar year when the taxpayer becomes a constituent entity of a consolidated group described in subparagraph 10 (1)(a)(iii). Definition of in-scope period (2) If subsection (1) applies to a taxpayer for a particular calendar year, in this Part and in the definition relevant time in Part 4, the in-scope period , of the taxpayer, means the period during the particular calendar year beginning at the first moment in the particular calendar year when the taxpayer becomes a constituent entity of a consolidated group described in subparagraph 10 (1)(a)(iii) and ending on December 31. Attribution of activity 22 Revenue of a particular constituent entity of a consolidated group is deemed to be Canadian digital services revenue of the particular entity if the revenue (a) is in respect of the provision of a service, or the selling or granting of access to user data, by another constituent entity of the group; and (b) would be Canadian digital services revenue of that other entity if the revenue were earned by the other entity. PART 4 Taxable Canadian Digital Services Revenue Definitions 23 The following definitions apply in this Part. deduction amount  means an amount prescribed by regulation. ( montant de la déduction ) relevant interval , of a taxpayer in a calendar year, means any period from one relevant time of the taxpayer in the year to the next relevant time of the taxpayer in the year. ( intervalle pertinent ) relevant time , of a particular taxpayer in a calendar year, means    (a) the first moment of (i) the in-scope period of the particular taxpayer if section 21 applies to the particular taxpayer for the calendar year, or (ii) January 1 in any other case; (b) the last moment of December 31; (c) any time between the time referred to in paragraph (a) and the time referred to in paragraph (b) at which the particular taxpayer becomes, or ceases to be, a constituent entity of a consolidated group; and (d) any time between the time referred to in paragraph (a) and the time referred to in paragraph (b) at which (i) the particular taxpayer is a constituent entity of a consolidated group, and (ii) any other taxpayer becomes, or ceases to be, a constituent entity of the group. ( moment pertinent ) Determination 24 A particular taxpayer’s taxable Canadian digital services revenue for a calendar year is the amount determined by the formula A – B where A is the particular taxpayer’s Canadian digital services revenue for the calendar year; and B is (a) if the particular taxpayer is not, at any time in the calendar year, a constituent entity of a consolidated group, the deduction amount, and (b) in any other case, the total of all amounts each of which is an amount in respect of a relevant interval of the particular taxpayer in the calendar year determined by the formula C × (D ÷ 365) × (E ÷ F) where C is the deduction amount, D is the number of days in the relevant interval, E is the particular taxpayer’s Canadian digital services revenue for the calendar year, and F is (i) if the particular taxpayer is a constituent entity of a consolidated group during the relevant interval, the total of all amounts each of which is the Canadian digital services revenue for the calendar year of a taxpayer that is a constituent entity of the consolidated group during the relevant interval (or, if the particular taxpayer does not determine all those amounts, nil), and (ii) in any other case, the amount determined for E. PART 5 Miscellaneous DIVISION A Trustees and Receivers Definitions 25 The following definitions apply in this Division. bankruptcy day , of a taxpayer, means a day on which a trustee becomes the trustee in bankruptcy of the taxpayer. ( jour de la faillite ) bankruptcy period , of a taxpayer in respect of a bankruptcy day of the taxpayer, means the period during a calendar year (for which the taxpayer satisfies at least one of the conditions set out in subparagraphs 10 (1)(a)(i) and (ii) and satisfies the condition set out in paragraph 10 (1)(b)) beginning on the day after the bankruptcy day and ending on the earlier of the day on which the discharge of the trustee is granted under the Bankruptcy and Insolvency Act and December 31. ( période de faillite ) bankrupt year , of a taxpayer in respect of a bankruptcy day of the taxpayer, means any calendar year (for which the taxpayer satisfies at least one of the conditions set out in subparagraphs 10 (1)(a)(i) and (ii) and satisfies the condition set out in paragraph 10 (1)(b)) between the calendar year in which the bankruptcy day occurs and the calendar year in which the discharge of the trustee is granted under the Bankruptcy and Insolvency Act . ( année de faillite ) business  includes a part of a business. ( entreprise ) pre-bankruptcy period , of a taxpayer in respect of a bankruptcy day of the taxpayer, means the period during a calendar year (for which the taxpayer satisfies at least one of the conditions set out in subparagraphs 10 (1)(a)(i) and (ii) and satisfies the condition set out in paragraph 10 (1)(b)) beginning on January 1 and ending on the bankruptcy day. ( période de pré-faillite ) pre-cease period , of a taxpayer in respect of a receivership day of the taxpayer, means the period during a particular calendar year (for which the taxpayer satisfies at least one of the conditions set out in subparagraphs 10 (1)(a)(i) and (ii) and satisfies the condition set out in paragraph 10 (1)(b)) after the year in which the receivership day occurs beginning on January 1 of the particular calendar year and ending on the day on which the receiver ceases to act as receiver of the taxpayer. ( période antérieure à la cessation ) pre-discharge period , of a taxpayer in respect of a bankruptcy day of the taxpayer, means the period during a particular calendar year (for which the taxpayer satisfies at least one of the conditions set out in subparagraphs 10 (1)(a)(i) and (ii) and satisfies the condition set out in paragraph 10 (1)(b)) after the year in which the bankruptcy day occurs beginning on January 1 of the particular calendar year and ending on the day on which the discharge of the trustee is granted under the Bankruptcy and Insolvency Act . ( période antérieure à la libération ) pre-receivership period , of a taxpayer in respect of a receivership day of the taxpayer, means the period during a calendar year (for which the taxpayer satisfies at least one of the conditions set out in subparagraphs 10 (1)(a)(i) and (ii) and satisfies the condition set out in paragraph 10 (1)(b)) beginning on January 1 and ending on the receivership day. ( période antérieure à la mise sous séquestre ) receiver  means a person that (a) under the authority of a debenture, bond or other debt security, of a court order or of an Act of Parliament or of the legislature of a province, is empowered to operate or manage a business or a property of another person; (b) is appointed by a trustee under a trust deed in respect of a debt security to exercise the authority of the trustee to manage or operate a business or a property of the debtor under the debt security; (c) is appointed by a bank or an authorized foreign bank , as those terms are defined in section 2 of the Bank Act , to act as an agent or mandatary of the bank in the exercise of the authority of the bank under subsection 426(3) of that Act in respect of property of another person; or (d) is appointed as a liquidator to liquidate the assets of a corporation or to wind up the affairs of a corporation. It includes a person that is appointed to exercise the authority of a creditor under a debenture, bond or other debt security to operate or manage a business or a property of another person, but, if a person is appointed to exercise the authority of a creditor under a debenture, bond or other debt security to operate or manage a business or a property of another person, it does not include that creditor. ( séquestre ) receivership day , of a taxpayer, means the earliest day on which a receiver (a) is vested with authority to manage, operate, liquidate or wind up any business or property or to manage and care for the affairs and assets of the taxpayer; and (b) is in possession of or controls and manages the affairs and assets of the taxpayer. ( jour de mise sous séquestre ) receivership period , of a taxpayer in respect of a receivership day of the taxpayer, means the period during a calendar year (for which the taxpayer satisfies at least one of the conditions set out in subparagraphs 10 (1)(a)(i) and (ii) and satisfies the condition set out in paragraph 10 (1)(b)) beginning on the day after the receivership day and ending on the earlier of the day on which the receiver ceases to act as receiver of the taxpayer and December 31. ( période de mise sous séquestre ) relevant assets  of a receiver means the part of the properties, businesses, affairs or assets of a person to which the receiver’s authority relates. ( actif pertinent ) year in receivership , of a taxpayer in respect of a receivership day of the taxpayer, means any calendar year (for which the taxpayer satisfies at least one of the conditions set out in subparagraphs 10 (1)(a)(i) and (ii) and satisfies the condition set out in paragraph 10 (1)(b)) between the calendar year in which the receivership day occurs and the calendar year in which the receiver ceases to act as receiver of the taxpayer. ( année sous séquestre ) Trustee as agent or mandatary 26 If a taxpayer has become a bankrupt and a trustee becomes the trustee in bankruptcy of the taxpayer, the trustee is deemed to be the agent or mandatary of the bankrupt for all purposes of this Act and any revenue of the trustee from carrying on the business of the bankrupt is deemed to be revenue of the bankrupt and not of the trustee. Tax payable for bankruptcy 27 (1) If during a particular calendar year there is a bankruptcy day of a taxpayer, (a) section 10 does not apply in respect of the particular calendar year, any bankrupt year or a calendar year during which the pre-discharge period, if any, occurs; (b) the taxpayer must pay a tax in respect of the pre-bankruptcy period equal to 3% of the taxpayer’s taxable Canadian digital services revenue for the pre-bankruptcy period determined in accordance with section 31 ; (c) subject to subsection (2), the trustee, and not the taxpayer, must pay a tax in respect of each of the bankruptcy period and, if any, the pre-discharge period equal to 3% of the taxpayer’s taxable Canadian digital services revenue for the period determined in accordance with section 31 ; and (d) subject to subsection (2), the trustee, and not the taxpayer, must pay a tax in respect of any bankrupt year equal to 3% of the taxpayer’s taxable Canadian digital services revenue for the year. Trustee — exception (2) A trustee is not liable for the payment of any amount for which a receiver is liable under section 29 . Filing and payment 28 (1) If section 27 applies in respect of a bankruptcy day of a taxpayer during a particular calendar year, (a) sections 45 and 49 do not apply to the taxpayer in respect of the particular calendar year, any bankrupt year or a calendar year during which the pre-discharge period, if any, occurs; (b) subject to subsection (2), the trustee must file all returns — in the form and manner, and containing the information, prescribed by the Minister — in respect of any year or period referred to in paragraph 27 (1)(c) or (d) for which the trustee is liable to pay tax greater than nil, and pay the tax payable under this Act in respect of the year or period, on or before the day that is 90 days after the last day of the year or period; and (c) subject to subsection (2), the trustee must, unless the Minister waives the requirement in writing, file any return that is required to be filed by the taxpayer in respect of the calendar year immediately preceding the particular calendar year or in respect of the pre-bankruptcy period — in the form and manner, and containing the information, prescribed by the Minister — on or before the day that is 90 days after the bankruptcy day. Trustee — exception (2) If there is a receiver with authority in respect of any business, property, affairs or assets of a taxpayer referred to in subsection (1), the trustee is not required to include in any return any information that the receiver is required under section 30 to include in a return. Tax payable for receivership 29 If during a particular calendar year there is a receivership day of a taxpayer, (a) if the receiver is a receiver-manager, (i) section 10 does not apply in respect of the particular calendar year, any year in receivership or a calendar year during which the pre-cease period, if any, occurs, (ii) the taxpayer must pay a tax in respect of the pre-receivership period equal to 3% of the taxpayer’s taxable Canadian digital services revenue for the pre-receivership period determined in accordance with section 31 , (iii) the receiver-manager, and not the taxpayer, must pay a tax in respect of each of the receivership period and, if any, the pre-cease period equal to 3% of the taxpayer’s taxable Canadian digital services revenue for the period determined in accordance with section 31 , and (iv) the receiver-manager, and not the taxpayer, must pay a tax in respect of any year in receivership equal to 3% of the taxpayer’s taxable Canadian digital services revenue for the year; and (b) in any other case, (i) the receiver must pay (A) a tax in respect of each of the receivership period and, if any, the pre-cease period equal to 3% of the portion of the taxpayer’s Canadian digital services revenue for the period (determined in accordance with section 31 ) that is online marketplace services revenue, online advertising services revenue, social media services revenue and user data revenue earned by the taxpayer for the period that can reasonably be considered to relate to the relevant assets of the receiver, and (B) a tax in respect of any year in receivership, equal to 3% of the portion of the taxpayer’s Canadian digital services revenue for the year that is online marketplace services revenue, online advertising services revenue, social media services revenue and user data revenue earned by the taxpayer for the year that can reasonably be considered to relate to the relevant assets of the receiver, and (ii) for the purpose of section 10 , the taxpayer’s taxable Canadian digital services revenue in respect of the particular calendar year, any years in receivership and a calendar year during which the pre-cease period, if any, occurs is determined as if online marketplace services revenue, online advertising services revenue, social media services revenue and user data revenue of the taxpayer for the year did not include revenue that is included in the portion of Canadian digital services revenue described in clause (b)(i)(A) or (B). Filing and payment 30 If section 29 applies in respect of a receivership day of a taxpayer during a particular calendar year, (a) if the receiver is a receiver-manager, (i) sections 45 and 49 do not apply to the taxpayer in respect of the particular calendar year, any year in receivership or a calendar year during which the pre-cease period, if any, occurs, (ii) the receiver-manager must file all returns — in the form and manner, and containing the information, prescribed by the Minister — in respect of any year or period referred to in subparagraph 29 (a)(iii) or (iv) for which the receiver-manager is liable to pay tax greater than nil, and pay the tax payable under this Act in respect of the year or period, on or before the day that is 90 days after the last day of the year or period, and (iii) the receiver-manager must, unless the Minister waives the requirement in writing, file any return that is required to be filed by the taxpayer in respect of the calendar year immediately preceding the particular calendar year or in respect of the pre-receivership period — in the form and manner, and containing the information, prescribed by the Minister — on or before the day that is 90 days after the receivership day; and (b) in any other case, the receiver must file all returns — in the form and manner, and containing the information, prescribed by the Minister — in respect of any year or period referred to in subparagraph 29 (b)(i) for which the receiver is liable to pay tax greater than nil, and pay the tax payable under this Act in respect of the year or period, on or before the day that is 90 days after the last day of the year or period. Non-calendar year periods 31 (1) For the purposes of sections 27 and 29 , a taxpayer’s taxable Canadian digital services revenue or Canadian digital services revenue for a pre-bankruptcy period, bankruptcy period, pre-discharge period, pre-receivership period, receivership period or pre-cease period is the taxable Canadian digital services revenue or Canadian digital services revenue of the taxpayer, determined in accordance with Parts 3 and 4, with the following modifications: (a) the references in Parts 3 and 4 to “calendar year” (except in the descriptions of E and F in section 24 ) are to be read as references to “pre-bankruptcy period”, “bankruptcy period”, “pre-discharge period”, “pre-receivership period”, “receivership period” or “pre-cease period”, as the case may be; (b) the references in Parts 3 and 4 to “year” (except in the descriptions of E and F in section 24 ) are to be read as references to “period”; (c) paragraphs (a) and (b) of the definition relevant time in section 23 are to be read as follows: “(a) the first moment of the first day of the period; (b) the last moment of the last day of the period;” (d) paragraph (a) of the description of B in section 24 does not apply; and (e) subsections 12 (2) and (3) do not apply. Administration and enforcement (2) Except as otherwise provided in this Division, Part 6 applies, with any modifications that the circumstances require, to any taxpayer, trustee or receiver in respect of any year or period referred to in this Division. Certificates for receivers 32 (1) Every receiver that controls property of a taxpayer that is, or can reasonably be expected to become, required to pay any amount under this Act must, before distributing the property to any person, obtain a certificate from the Minister certifying that the following amounts have been paid, or that security for the payment of them has been accepted by the Minister, in accordance with this Act: (a) all amounts that are payable under this Act by the taxpayer or the receiver (in that capacity) in respect of any calendar year, or period, preceding the calendar year, or period, during which the distribution is made; and (b) all amounts that can reasonably be expected to become payable under this Act by the taxpayer or the receiver (in that capacity) in respect of the calendar year or period during which the distribution is made, or any previous calendar year or period. Liability for failure to obtain certificate (2) Any receiver that distributes property without obtaining a certificate in respect of the amounts referred to in subsection (1) is personally liable for the payment of those amounts to the extent of the value of the property so distributed. DIVISION B Partnerships Partnerships 33 (1) For the purposes of this Act, anything done by a person as a member of a partnership is deemed to have been done by the partnership in the course of the partnership’s activities and not to have been done by the person. Joint and several or solidary liability (2) A partnership and each member or former member (each of which is referred to in this subsection as the “member”) of the partnership (other than a member that is a limited partner and is not a general partner) are jointly and severally, or solidarily, liable for (a) the payment of all amounts that are required to be paid by the partnership under this Act before or during the period during which the member is a member of the partnership or, if the member was a member of the partnership at the time the partnership was dissolved, after the dissolution of the partnership, except that (i) the member is liable for the payment of amounts that become payable before the period only to the extent of the property that is regarded as property of the partnership under the relevant laws of general application to partnerships in force in a province or other jurisdiction, and (ii) the payment by the partnership or by any member of the partnership of an amount in respect of the liability discharges their liability to the extent of that amount; and (b) all other obligations under this Act that arose before or during that period for which the partnership is liable or, if the member was a member of the partnership at the time the partnership was dissolved, the obligations that arose upon or as a consequence of the dissolution. DIVISION C Anti-avoidance Definitions 34 (1) The following definitions apply in this Division. tax benefit  means a reduction, avoidance or deferral of tax or other amount payable under this Act or an increase in a refund of tax or other amount under this Act. ( avantage fiscal ) tax consequences  to a person means the amount of tax or other amount payable by, or refundable to, the person under this Act, or any other amount that is relevant for the purposes of computing that amount. ( attribut fiscal ) transaction  includes an arrangement or event. ( opération ) General anti-avoidance rule (2) If a transaction is an avoidance transaction, the tax consequences to a person are to be determined as is reasonable in the circumstances in order to deny a tax benefit that, in the absence of this section, would result, directly or indirectly, from that transaction or from a series of transactions that includes that transaction. Avoidance transaction (3) An avoidance transaction means any transaction (a) that, in the absence of this section, would result, directly or indirectly, in a tax benefit, unless the transaction may reasonably be considered to have been undertaken or arranged primarily for bona fide purposes other than to obtain the tax benefit; or (b) that is part of a series of transactions, which series, in the absence of this section, would result, directly or indirectly, in a tax benefit, unless the transaction may reasonably be considered to have been undertaken or arranged primarily for bona fide purposes other than to obtain the tax benefit. Application of subsection (2) (4) Subsection (2) applies to a transaction only if it may reasonably be considered that the transaction (a) would, if this Act were read without reference to this section, result directly or indirectly in a misuse of the provisions of any one or more of (i) this Act, (ii) the Digital Services Tax Regulations , or (iii) any other enactment that is relevant in computing tax or any other amount payable by or refundable to a person under this Act or in determining any amount that is relevant for the purposes of that computation; or (b) would result directly or indirectly in an abuse having regard to those provisions, other than this section, read as a whole. Determination of tax consequences (5) Without restricting the generality of subsection (2) and despite any other enactment, in determining the tax consequences to a person as is reasonable in the circumstances in order to deny a tax benefit that would, in the absence of this section, result directly or indirectly from an avoidance transaction (a) any deduction, exemption or exclusion in computing Canadian digital services revenue, taxable Canadian digital services revenue or tax payable or any part thereof may be allowed or disallowed in whole or in part; (b) any such deduction, exemption or exclusion, any revenue or other amount or part thereof may be allocated to any person; (c) the nature of any payment or other amount may be recharacterized; and (d) the tax effects that would otherwise result from the application of other provisions of this Act may be ignored. Request for adjustments (6) If, with respect to a transaction, a notice of assessment involving the application of subsection (2) with respect to the transaction has been sent to a person, then any person (other than a person to which such a notice has been sent) is entitled, within 180 days after the day of sending of the notice, to request in writing that the Minister make an assessment applying subsection (2) with respect to that transaction. Exception (7) Despite any other provision of this Act, the tax consequences to any person, following the application of this section, are only to be determined through a notice of assessment involving the application of this section. Duties of Minister (8) On receipt of a request by a person under subsection (6), the Minister must, without delay, consider the request and, despite subsection 70 (1), assess the person. However, an assessment may be made under this subsection only to the extent that it may reasonably be regarded as relating to the transaction referred to in subsection (6). Series of transactions 35 For the purposes of this Division, a series of transactions is deemed to include any related transactions completed in contemplation of the series. PART 6 General Provisions, Administration and Enforcement Definitions 36 (1) The following definitions apply in this Part. Agency  means the Canada Revenue Agency continued by subsection 4(1) of the Canada Revenue Agency Act . ( Agence ) bank  means a bank or an authorized foreign bank , as those terms are defined in section 2 of the Bank Act , that is not subject to the restrictions and requirements referred to in subsection 524(2) of that Act. ( banque ) business number  means any number (other than a Social Insurance Number) used by the Minister to identify a person for the purposes of this Act. ( numéro d’entreprise ) Commissioner  means, except in sections 39 , 105 and 122 , the Commissioner of Revenue appointed under section 25 of the Canada Revenue Agency Act . ( commissaire ) judge , in respect of any matter, means a judge of a superior court having jurisdiction in the province in which the matter arises or a judge of the Federal Court. ( juge ) official  means a person who is employed in the service of, who occupies a position of responsibility in the service of, or who is engaged by or on behalf of, His Majesty in right of Canada or a province, or a person who was formerly so employed, who formerly occupied such a position or who formerly was so engaged. ( fonctionnaire ) record  means any material on which representations, in any form, of information or concepts are recorded or marked and that is capable of being read or understood by an individual or a computer system or other device. ( registre ) registration threshold  means the amount prescribed by regulation. ( seuil d’inscription ) Person resident in Canada (2) For the purposes of this Part, a person is deemed to be resident in Canada at any time (a) in the case of a corporation, if the corporation is (i) incorporated in Canada and not continued elsewhere, or (ii) continued in Canada; (b) in the case of a partnership, an unincorporated society, a club, an association or organization, or a branch thereof, if the member or participant, or a majority of the members or participants, having management and control thereof is or are resident in Canada at that time; (c) in the case of a labour union, if it is carrying on activities as such in Canada and has a local union or branch in Canada at that time; and (d) in the case of an individual, if the individual is deemed under any of paragraphs 250(1)(a) to (f) of the Income Tax Act to be resident in Canada at that time. Administration or enforcement (3) For greater certainty, a reference in this Part to the administration or enforcement of this Act includes the collection of any amount payable under this Act. DIVISION A Duties of Minister Minister’s duty 37 The Minister must administer and enforce this Act and the Commissioner may exercise the powers and perform the duties of the Minister under this Act. Staff 38 (1) The persons that are necessary to administer and enforce this Act are to be appointed, employed or engaged in the manner authorized by law. Delegation of powers (2) The Minister may authorize any person who is employed or engaged by the Agency, or occupies a position of responsibility in the Agency, to exercise powers or perform duties of the Minister under this Act, including any judicial or quasi-judicial power or duty. Administration of oaths 39 Any person, if so designated by the Minister, may administer oaths and take and receive affidavits, declarations and affirmations for the purposes of, or incidental to, the administration or enforcement of this Act, and every person so designated has for those purposes all the powers of a commissioner for administering oaths or taking affidavits. Waiving the filing of documents 40 If any provision of this Act or a regulation requires a person to file a form or other document in the form and manner prescribed by the Minister (other than a return or a form, or other document, with respect to an election) or to provide information, prescribed by the Minister, the Minister may waive the requirement, but at the Minister’s request the person must provide the document or information by the date set out in the request. DIVISION B Registration Requirement to register 41 (1) A taxpayer must apply to register under this Act on or before the earliest of (a) January 31 of the year following the first year of application, if the taxpayer (i) has Canadian digital services revenue greater than nil (A) for the first year of application, or (B) if the rate referred to in the description of B in subsection 10(2) is greater than nil, for any calendar year that is after 2021 and before the first year of application, and (ii) would meet the conditions set out in paragraphs 10 (1)(a) and (b) in respect of a calendar year for which the condition set out in subparagraph (i) is satisfied if the references to “in-scope revenue threshold” in paragraph 10 (1)(b) were read as references to “registration threshold”; and (b) January 31 of the year following a calendar year, after the first year of application, for which calendar year the taxpayer (i) has Canadian digital services revenue greater than nil, and (ii) would meet the conditions set out in paragraphs 10 (1)(a) and (b) if the references to “in-scope revenue threshold” in paragraph 10 (1)(b) were read as references to “registration threshold”. Waiving requirement under subsection (1) (2) The Minister may waive a taxpayer’s requirement under subsection (1), but at the Minister’s request the taxpayer must apply to register by the date set out in the request. Application to register 42 (1) An application for registration under this Division must be made in the form and manner, and contain the information, prescribed by the Minister. Notification (2) The Minister may register any taxpayer that applies for registration under this Act and, if the Minister does so, the Minister must notify the taxpayer of the effective date of the registration and of the registration number assigned to the taxpayer. De-registration 43 (1) The Minister may, upon request by a taxpayer, de-register the taxpayer at any time if the Minister is satisfied that the taxpayer would not have met the conditions set out in paragraphs 10 (1)(a) and (b) — in respect of any of the three calendar years immediately preceding that time — if the references to “in-scope revenue threshold” in paragraph 10 (1)(b) were read as references to “registration threshold”. Consequences of de-registration (2) A taxpayer that is, at a particular time, de-registered under subsection (1) is deemed for the purpose of applying subsection 41 (1) at any time subsequent to the particular time (a) not to have applied for registration before the particular time; and (b) not to have met the conditions set out in paragraph 41 (1)(b) before the particular time. Notification (3) If the Minister de-registers a taxpayer under this section, the Minister must notify the taxpayer of the de-registration and the effective date of the de-registration. Notice of intent 44 (1) If the Minister has reason to believe that a taxpayer that is not registered under this Act is required to apply to register and has failed to do so as and when required, the Minister may send a notice of intent in writing to the taxpayer that the Minister proposes to register the taxpayer under this Act. Notice of intent — requirement to register (2) On receipt of a notice of intent, a taxpayer must apply to register or establish to the satisfaction of the Minister that the taxpayer is not required to do so. Notice of intent — notification of registration (3) If, after 60 days after the day on which a notice of intent was sent by the Minister to a taxpayer, the taxpayer has not applied to register and the Minister is not satisfied that the taxpayer is not required to apply to register, the Minister may register the taxpayer and, on doing so, must notify the taxpayer of the effective date of the registration and the registration number assigned to the taxpayer. DIVISION C Returns Requirement to file return 45 A taxpayer must file a return — in the form and manner, and containing the information, prescribed by the Minister — for a particular calendar year, on or before June 30 of the following calendar year, if (a) the particular calendar year is the first year of application and the taxpayer (i) has Canadian digital services revenue greater than nil (A) for the first year of application, or (B) if the rate referred to in the description of B in subsection 10(2) is greater than nil, for any calendar year that is after 2021 and before the first year of application, and (ii) meets the conditions set out in paragraphs 10 (1)(a) and (b) in respect of a calendar year for which the condition set out in subparagraph (i) is satisfied; or (b) the particular calendar year is after the first year of application and the taxpayer (i) has Canadian digital services revenue greater than nil for the particular calendar year, and (ii) meets the conditions set out in paragraphs 10 (1)(a) and (b) in respect of the particular calendar year. Election — designated entity 46 (1) A taxpayer that is a constituent entity of a consolidated group at any time in a particular calendar year (other than a taxpayer that is a constituent entity of more than one consolidated group during the particular calendar year) may jointly elect, in respect of the particular calendar year, with one or more other constituent entities of the group (including a particular constituent entity) to designate the particular constituent entity (referred to in this Act as the “designated entity”) by making an election on or before June 30 of the following calendar year in the form and manner, and containing the information, prescribed by the Minister. Election — consequences (2) If a taxpayer elects to designate an entity under subsection (1) in respect of a calendar year (a) the designated entity must act on behalf of the taxpayer for the purposes of this Part in respect of the year; (b) any action taken by the designated entity on behalf of the taxpayer for the purposes of this Part in respect of the year is deemed to have been performed by the taxpayer; and (c) the Minister must direct to the designated entity and the taxpayer any communication for the purposes of this Part as it applies to the taxpayer in respect of the year. Application for registration — designated entity (3) If a taxpayer elects to designate an entity under subsection (1) that is not registered under this Act, the designated entity must, at the time of the election, make an application to register in the form and manner, and containing the information, prescribed by the Minister. Extension of time 47 (1) The Minister may at any time extend the time for filing a return, form or other document, providing information, or making an election under this Act. Effect of extension (2) If the Minister extends the time for filing a return, form or other document, providing information or making an election under subsection (1), (a) the return, form or other document must be filed, the information must be provided or the election must be made within the time so extended; and (b) in the case of a return, any penalty payable under section 84 in respect of the return must be determined as though the return were required to be filed on the day on which the extended time expires. Demand for return 48 A taxpayer must, on demand sent by the Minister, file, within any reasonable time that may be specified in the demand, a return under this Act for any calendar year that is designated in the demand. DIVISION D Payments Payments 49 The tax payable under this Act by a taxpayer in respect of a calendar year must be paid on or before June 30 of the following calendar year. Manner and form of payments 50 Every person that is required under this Act to pay tax or any other amount must make the payment to the account of the Receiver General for Canada in the manner and form prescribed by the Minister. Assessment of another constituent entity 51 (1) The Minister may assess a particular constituent entity of a consolidated group in respect of tax and other amounts payable under this Act by another constituent entity of the group. If such an assessment is made, the particular constituent entity is jointly and severally, or solidarily, liable with the other constituent entity to pay the amount assessed and this Part applies to the particular constituent entity in respect of the amount assessed with any modifications that the circumstances require. Limitation (2) Subsection (1) does not limit the liability of the other constituent entity under any other provision of this Act or the liability of the particular constituent entity for the interest that the particular constituent entity is liable to pay under this Act on an assessment in respect of the amount that the particular constituent entity is liable to pay because of that subsection. Rules applicable (3) If a particular constituent entity of a consolidated group and another constituent entity of the group become, because of subsection (1), jointly and severally, or solidarily, liable in respect of part or all of the liability of the other constituent entity under this Act, the following rules apply: (a) a payment by the particular constituent entity on account of the particular constituent entity’s liability discharges, to the extent of the payment, the joint liability; and (b) a payment by the other constituent entity on account of the other constituent entity’s liability discharges the particular constituent entity’s liability only to the extent that the payment operates to reduce that liability to an amount less than the amount in respect of which the particular constituent entity is, because of subsection (1), jointly and severally, or solidarily, liable. Definition of transaction 52 (1) In this section and section 87 , a transaction includes an arrangement or event. Tax liability — property transferred not at arm’s length (2) If at any time a person transfers property, either directly or indirectly, by means of a trust or by any other means, to another person with which the transferor was not, at that time, dealing at arm’s length, the transferee and transferor are jointly and severally, or solidarily, liable to pay under this Act an amount equal to the lesser of (a) the amount determined by the formula A − (B − C) where A is the amount, if any, by which the fair market value of the property at that time exceeds the fair market value at that time of the consideration given by the transferee for the transfer of the property, B is the total of all amounts, if any, the transferee was assessed under subsection 325(2) of the Excise Tax Act , paragraph 97.44(1)(b) of the Customs Act , subsection 160(2) of the Income Tax Act , subsection 297(3) of the Excise Act, 2001 , subsection 161(3) of the Greenhouse Gas Pollution Pricing Act , subsection 80(3) of the Underused Housing Tax Act or subsection 150(4) of the Select Luxury Items Tax Act in respect of the property, and C is the amount paid by the transferor in respect of the amount determined for B, and (b) the total of all amounts each of which is (i) an amount that the transferor is liable to pay under this Act in respect of (A) the calendar year that includes that time, or (B) any preceding calendar year, or (ii) interest or penalties (other than amounts included in subparagraph (i)) for which the transferor is liable at that time. Limitation (3) Subsection (2) does not limit the liability of the transferor under any other provision of this Act or the liability of the transferee for the interest that the transferee is liable to pay under this Act on an assessment in respect of the amount that the transferee is liable to pay because of that subsection. Fair market value of undivided interest or right (4) For the purposes of this section, the fair market value at any time of an undivided interest in, or for civil law an undivided right in, a property that is expressed as a proportionate interest or right in that property is deemed to be equal to the same proportion of the fair market value of that property at that time. Assessment (5) Despite subsection 70 (1), the Minister may at any time assess a transferee in respect of any amount payable because of this section and this Part applies to the transferee with any modifications that the circumstances require. Rules applicable (6) If a transferor and transferee become, because of subsection (2), jointly and severally, or solidarily, liable in respect of part or all of the liability of the transferor under this Act, the following rules apply: (a) a payment by the transferee on account of the transferee’s liability discharges, to the extent of the payment, the joint liability; and (b) a payment by the transferor on account of the transferor’s liability discharges the transferee’s liability only to the extent that the payment operates to reduce the transferor’s liability to an amount less than the amount in respect of which the transferee is, because of subsection (2), jointly and severally, or solidarily, liable. Anti-avoidance rules (7) For the purposes of subsections (1) to (6), if a person (referred to in this section as the “transferor”) has transferred property either directly or indirectly, by means of a trust or by any other means whatever to another person (referred to in this section as the “transferee”) in a transaction or as part of a series of transactions, the following rules apply: (a) the transferor is deemed to not be dealing at arm’s length with the transferee at all times in the transaction or series of transactions if (i) the transferor and the transferee do not deal at arm’s length at any time during the period beginning immediately before the transaction or series of transactions and ending immediately after the transaction or series of transactions, and (ii) it is reasonable to conclude that one of the purposes of undertaking or arranging the transaction or series of transactions is to avoid joint and several, or solidary, liability of the transferee and the transferor under this section for an amount payable under this Act; (b) an amount that the transferor is liable to pay under this Act (including, for greater certainty, an amount that the transferor is liable to pay under this section, regardless of whether the Minister has made an assessment under subsection (5) in respect of that amount) is deemed to have become payable in the calendar year in which the property was transferred, if it is reasonable to conclude that one of the purposes of the transfer of the property is to avoid the payment of a future amount payable under this Act by the transferor or transferee; and (c) the amount determined for A in paragraph (2)(a) is deemed to be the greater of (i) the amount otherwise determined for A in paragraph (2)(a) without reference to this paragraph, and (ii) the amount determined by the formula A − B where A is the fair market value of the property at the time of the transfer, and B is (A) the lowest fair market value of the consideration (that is held by the transferor) given for the property at any time during the period beginning immediately before the transaction or series of transactions and ending immediately after the transaction or series of transactions, or (B) if the consideration is in a form that is cancelled or extinguished during the period referred to in clause (A), (I) the amount that is the lower of the amount determined under clause (A) and the fair market value during that period of any property, other than property that is cancelled or extinguished during the period, that is substituted for the consideration referred to in clause (A), or (II) if no property is substituted for the consideration referred to in clause (A), other than property that is cancelled or extinguished during the period, nil. Payment in Canadian dollars 53 (1) Every person that is required under this Act to pay an amount to the Receiver General for Canada must pay the amount in Canadian dollars. Exception (2) The Minister may, at any time, waive the requirement under subsection (1) and accept a currency other than Canadian dollars. If such a waiver is granted, the amount is to be converted from Canadian dollars to the other currency using a rate of exchange that is acceptable to the Minister. Definition of electronic payment 54 (1) In this section, electronic payment means any payment to the Receiver General for Canada that is made through electronic services offered by a person described in any of paragraphs (2)(a) to (d) or by any electronic means specified by the Minister. Electronic payment (2) Every person that is required under this Act to pay an amount to the Receiver General for Canada must, if the amount is $10,000 or more, make the payment by way of electronic payment, unless the person cannot reasonably pay the amount in that manner, to the account of the Receiver General for Canada at or through (a) a bank; (b) a credit union; (c) a corporation authorized under the laws of Canada or a province to carry on the business of offering its services as a trustee to the public; or (d) a corporation that is authorized under the laws of Canada or a province to accept deposits from the public and that carries on the business of lending money on the security of real property or immovables or investing in indebtedness on the security of mortgages on real property or hypothecs on immovables. Small amounts owing by a person 55 (1) If, at any time, the total of all unpaid amounts owing by a person to the Receiver General for Canada under this Act does not exceed $2.00, the amount owing by the person is deemed to be nil. Small amounts payable to a person (2) If, at any time, the total of all amounts payable by the Minister to a person under this Act does not exceed $2.00, the Minister may apply those amounts against any amount owing, at that time, by the person to His Majesty in right of Canada. However, if the person, at that time, does not owe any amount to His Majesty in right of Canada, those amounts payable are deemed to be nil. DIVISION E Interest Compound interest 56 (1) If a person fails to pay an amount to the Receiver General for Canada as and when required under this Act, the person must pay to the Receiver General for Canada interest on the amount. The interest must be compounded daily at the rate prescribed by regulation and determined for the period beginning on the first day after the day on or before which the amount was required to be paid and ending on the day on which the amount is paid. Payment of compounded interest (2) For the purposes of subsection (1), interest that is compounded on a particular day on an unpaid amount of a person is deemed to be required to be paid by the person to the Receiver General for Canada at the end of the particular day and, if the person has not paid the interest so determined by the end of the day after the particular day, the interest must be added to the unpaid amount at the end of the particular day. Period when interest not payable (3) If the Minister has served a demand that a person pay on or before a specified day all amounts payable by the person under this Act on the date of the demand, and the person pays the amount demanded on or before the specified day, the Minister must waive any interest that would otherwise apply in respect of the amount demanded for the period beginning on the first day after the date of the demand and ending on the day of payment. Interest and penalty amounts of $25 or less (4) If, at any time, a person pays an amount that is not less than the total of all amounts, other than interest and penalties, owing at that time to His Majesty in right of Canada under this Act in respect of a calendar year and the total amount of interest and penalties payable by the person under this Act in respect of the year is not more than $25, the Minister may cancel the interest and penalties. Waiving or cancelling interest 57 (1) The Minister may, on or before the day that is 10 calendar years after the end of a particular calendar year, or on application by a person on or before that day, waive, cancel or reduce any interest otherwise payable by the person under this Act on an amount that is required to be paid by the person in respect of the particular calendar year, and may despite subsection 70 (1), make any assessment of the interest payable by the person that is necessary to take into account the waiver, cancellation or reduction of the interest. Interest on amounts waived or cancelled (2) If a person has paid an amount of interest and the Minister waives, cancels or reduces any portion of that amount under subsection (1), the Minister must refund the portion of the amount and pay interest on it at the rate prescribed by regulation beginning on the day that is 30 days after the day on which the Minister received an application in a manner satisfactory to the Minister to apply that subsection (or, if there is no such application, on the day on which the Minister waives, cancels or reduces the portion of the amount) and ending on the day on which the portion of the amount is paid as a refund or applied against another amount owed by the person to His Majesty in right of Canada. DIVISION F Administrative Charge under Financial Administration Act Dishonoured instruments 58 For the purposes of this Act and section 155.1 of the Financial Administration Act , any charge that is payable at any time by a person under the Financial Administration Act in respect of an instrument tendered in payment or settlement of an amount that is payable under this Act is deemed to be an amount that is payable by the person at that time under this Act. In addition, Part II of the Interest and Administrative Charges Regulations does not apply to the charge and any debt under subsection 155.1(3) of the Financial Administration Act in respect of the charge is deemed to be extinguished at the time the total of the amount and any applicable interest under this Act is paid. DIVISION G Refunds Statutory recovery rights 59 Except as specifically provided under this Act or the Financial Administration Act , no person has a right to recover any money that has been paid to His Majesty in right of Canada as or on account of, or that has been taken into account by His Majesty in right of Canada as, an amount payable under this Act. Refund — payment in error 60 (1) If a person, otherwise than because of an assessment, has paid any moneys in error to His Majesty in right of Canada, whether by reason of mistake of fact or law or otherwise, and the moneys have been taken into account by His Majesty in right of Canada as taxes, penalties, interest or other amounts under this Act, then an amount equal to the amount of the moneys must, subject to this Act, be refunded to the person if the person applies for the refund of the amount within two years after the day on which the moneys were paid. Form and contents of application (2) An application under subsection (1) must be made in the form and manner, and containing the information, prescribed by the Minister. Determination (3) On receipt of an application made under subsection (1), the Minister must, without delay, consider the application and determine the amount of the refund, if any, payable to the applicant. Minister not bound (4) In considering an application made under subsection (1), the Minister is not bound by any application made or information provided by or on behalf of any person. Notice and payment (5) After considering an application made under subsection (1), the Minister must (a) send to the applicant a notice of the determination made under subsection (3); and (b) pay to the applicant the amount of the refund, if any, payable to the applicant. Objections and appeals (6) For the purposes of Divisions J and K and subsections 67 (5) and 122 (7) and (13), a determination made under subsection (3) is deemed to be an assessment. Interest on payment (7) If an amount is paid to an applicant under subsection (5), the Minister must pay interest, at the rate prescribed by regulation, to the applicant on the amount for the period beginning on the day that is 30 days after the day on which the application was received (or deemed received under subsection 67 (4)) by the Minister and ending on the day on which the amount is paid. Determination valid and binding (8) A determination made under subsection (3), subject to being varied or vacated on an objection or appeal under this Act and subject to an assessment, is deemed to be valid and binding despite any irregularity, informality, error, defect or omission in the notice of the determination or in any proceeding under this Act relating to the determination. Restriction — application to other debts 61 Instead of paying to a person a refund that might otherwise be paid under this Act, the Minister may, if the person is, or is about to become, liable to make any payment to His Majesty in right of Canada or a province, apply the amount of the refund to that liability and notify the person of that action. Restriction — unfulfilled filing requirements 62 The Minister must not, in respect of a person, refund, repay, apply to other debts or set off amounts under this Act until the person has filed with the Minister all returns and other records of which the Minister has knowledge that are required to be filed under this Act, the Income Tax Act , the Excise Tax Act , the Excise Act 2001 , the Air Travellers Security Charge Act , the Greenhouse Gas Pollution Pricing Act , the Underused Housing Tax Act and the Select Luxury Items Tax Act . Restriction — trustees 63 If a trustee is appointed under the Bankruptcy and Insolvency Act to act in the administration of the estate of a bankrupt, a refund under this Act that the bankrupt was entitled to claim before the appointment must not be paid after the appointment unless all returns required under this Act to be filed before the appointment have been filed and all amounts required under this Act to be paid by the bankrupt have been paid. Overpayment of refund or interest 64 If an amount is paid to, or applied to a liability of, a person as a refund or as interest under this Act and the person is not entitled to the refund or interest or the amount paid or applied exceeds the refund or interest to which the person is entitled, the Minister may, despite subsection 70 (1), assess the person at any time and the person must pay to the Receiver General for Canada an amount equal to the refund, interest or excess on the day on which the refund, interest or excess is paid to, or applied to a liability of, the person. DIVISION H Records and Information Keeping records 65 (1) A person must keep all records that are necessary to determine whether the person has complied with this Act and, if the person is or was a constituent entity of a consolidated group, all of that person’s records that are necessary to determine whether other entities of the group have complied with this Act. Minister may specify information (2) The Minister may specify the form that a record is to take and any information that the record must contain. Electronic records (3) Every person required under this section to keep a record that does so electronically must ensure that all equipment and software necessary to make the record intelligible are available during the retention period required for the record. General period for retention (4) Subject to subsection (5), every person that is required to keep records must retain them for a period of eight years after the end of the calendar year to which they relate or for any other period that may be prescribed by regulation. Exception — general period for retention (5) If, for a calendar year, a person has not filed a return as and when required by section 45 and subsequently files a return for the year, then the person must retain the records that are required by this section to be kept and that relate to the year for a period of eight years after the day on which the return is filed. Inadequate records (6) If a person fails to keep adequate records for the purposes of this Act, the Minister may require the person to keep any records that the Minister may specify and the person must keep the records specified. Objection or appeal (7) If a person that is required under this section to keep records serves a notice of objection, or is a party to an appeal or reference, under this Act, the person must retain every record that pertains to the subject matter of the objection, appeal or reference until the objection, appeal or reference is finally disposed of. Demand by Minister (8) If the Minister is of the opinion that it is necessary for the administration or enforcement of this Act, the Minister may, by a demand served personally, sent by confirmed delivery service or sent electronically, require any person to keep records and retain them for any period that is specified in the demand, and the person must comply with the demand. Permission for earlier disposal (9) A person that is required under this section to keep records may dispose of them before the expiry of the period during which they are required to be kept if permission for their disposal is given by the Minister. Requirement to provide information or records 66 (1) Subject to subsection (2), but despite any other provision of this Act, the Minister may — for any purpose related to the administration or enforcement of this Act by notice served personally, sent by confirmed delivery service or sent electronically — require that any person provide the Minister, within such reasonable time as is specified in the notice, with any information or record. Unnamed persons (2) The Minister must not impose on any person (in this section referred to as a “third party”) a requirement to provide information or any record relating to one or more unnamed persons unless the Minister first obtains the authorization of a judge under subsection (3). Judicial authorization (3) A judge of the Federal Court may, on application by the Minister and subject to any conditions that the judge considers appropriate, authorize the Minister to impose on a third party a requirement under subsection (1) relating to an unnamed person, or a group of unnamed persons, if the judge is satisfied by information on oath that (a) the unnamed person or the group is ascertainable; and (b) the requirement is imposed to verify compliance by the unnamed person, or persons in the group, with any obligation under this Act. Time period not to count (4) If a person is sent or served with a notice of requirement under subsection (1), the period between the day on which an application for judicial review in respect of the requirement is made and the day on which the application is finally disposed of is not to be counted in the computation of the period within which an assessment of the person may be made under subsection 70 (1). DIVISION I Assessments Assessment 67 (1) The Minister may assess a person for any tax or other amount payable by the person under this Act and may, despite any previous assessment covering, in whole or in part, the same matter, vary the assessment, reassess the person or make any additional assessments that the circumstances require. Liability not affected (2) The liability of a person to pay an amount under this Act is not affected by an incorrect or incomplete assessment or by the fact that no assessment has been made. Minister not bound (3) The Minister is not bound by any return, application or information provided by or on behalf of any person and may make an assessment despite any return, application or information provided or not provided. Determination of refunds (4) In assessing a person under subsection (1), the Minister may determine whether a refund under section 60 is payable to the person. If the Minister makes such a determination, the person is deemed to have made an application under section 60 within two years after the day on which the moneys were paid and the Minister is deemed to have received the application on the date of the notice of assessment. Irregularities (5) No assessment is to be vacated or varied on an appeal by reason only of an irregularity, informality, error, defect or omission by any person in the observance of any directory provision of this Act. Notice of assessment 68 (1) After assessing a person under this Act, the Minister must send to the person a notice of the assessment. Payment of remainder (2) If the Minister has assessed a person for an amount, any portion of that amount remaining unpaid is payable to the Receiver General for Canada as of the date of the notice of assessment. Payment by Minister on assessment 69 Subject to subsections 72 (11), 82 (2) and 90 (2), if an assessment of a person in respect of a particular calendar year establishes that the person has paid an amount in excess of the amount determined on that assessment to be payable in respect of the particular calendar year by the person, the Minister must pay to the person a refund of the amount of the excess together with interest, at the rate prescribed by regulation, on the amount of the excess for the period beginning on the day that is the later of July 30 of the following calendar year and the day on which the excess was paid and ending on the day on which the refund is paid. Limitation period for assessments 70 (1) Subject to subsections (2) to (5) and (10), no assessment in respect of any tax or other amount payable by a person under this Act is permitted more than seven years after the day on which the return to which the tax or other amount payable relates was filed under section 45 . Exception — objection or appeal (2) An assessment in respect of any tax or other amount payable by a person under this Act may be made at any time if the assessment is made (a) to give effect to a decision on an objection or appeal; (b) with the written consent of an appellant to dispose of an appeal; or (c) to give effect to an alternative basis or argument advanced by the Minister under subsection (5). Exception — neglect or fraud (3) An assessment in respect of any matter may be made at any time if the person to be assessed or the person filing a return has, in respect of that matter, (a) made a misrepresentation that is attributable to neglect, carelessness or wilful default; or (b) committed fraud in filing a return or an application for a refund or in providing any information under this Act. Exception — other period (4) If, in making an assessment, the Minister determines that a person has paid in respect of any matter an amount in respect of a particular calendar year that was in fact payable in respect of another calendar year, the Minister may at any time make an assessment for that other calendar year in respect of that matter. Alternative basis or argument (5) The Minister may advance an alternative basis or argument in support of an assessment of a person, or in support of all or any portion of the total amount determined on assessment to be payable by a person under this Act, at any time after the period otherwise limited by subsection (1) for making the assessment unless, on an appeal under this Act, (a) there is relevant evidence that the person is no longer able to adduce without leave of the court; and (b) it is not appropriate in the circumstances for the court to order that the evidence be adduced. Limitation — alternative basis or argument (6) If a reassessment of a person gives effect to an alternative basis or argument advanced by the Minister under subsection (5) in support of a particular assessment of the person, the Minister is not to reassess for an amount that is greater than the total amount of the particular assessment. Exception — alternative basis or argument (7) Subsection (6) does not apply to any portion of an amount determined on reassessment that the Minister would, if this Act were read without reference to subsection (5), be entitled to reassess under this Act at any time after the period otherwise limited by subsection (1) for making the reassessment. Filing waiver (8) A person may, within the period otherwise limited by subsection (1) for an assessment, waive the application of that subsection by filing with the Minister a waiver, in the form and manner prescribed by the Minister, specifying the period for which, and the matter in respect of which, the person waives the application of that subsection. Revoking waiver (9) Any person that has filed a waiver may revoke it by filing with the Minister a notice of revocation in the form and manner prescribed by the Minister. The waiver remains in effect for 180 days after the day on which the notice is filed. Exception — waiver (10) An assessment in respect of any matter specified in a waiver filed under subsection (8) may be made at any time within the period specified in the waiver unless the waiver has been revoked under subsection (9), in which case an assessment may be made at any time during the 180 days that the waiver remains in effect. Assessment deemed valid and binding 71 An assessment is, subject to being varied or vacated on an objection or appeal under this Act and subject to a reassessment, deemed to be valid and binding despite any irregularity, informality, error, defect or omission in the assessment or in any proceeding under this Act relating to the assessment. DIVISION J Objections to Assessment Objections to assessment 72 (1) A person that has been assessed and that objects to the assessment may, within 90 days after the date of the notice of the assessment, file with the Minister a notice of objection, in the form and manner prescribed by the Minister, setting out the reasons for the objection and all relevant facts. Issue to be decided (2) A notice of objection must (a) reasonably describe each issue to be decided; (b) specify in respect of each issue the relief sought, expressed as the change in any amount that is relevant for the purposes of the assessment; and (c) provide the facts and reasons relied on by the person in respect of each issue. Late compliance (3) Despite subsection (2), if a notice of objection does not include the information required under paragraph (2)(b) or (c) in respect of an issue to be decided that is described in the notice, the Minister may request that the person provide the information, and that paragraph is deemed to be complied with in respect of the issue if, within 60 days after the request is made, the person submits the information in writing to the Minister. Limitation on objections (4) Despite subsection (1), if a person has filed a notice of objection to an assessment (in this section referred to as the “earlier assessment”) and the Minister makes a particular assessment under subsection (8) as a result of the notice of objection, the person may object to the particular assessment in respect of an issue only (a) if the person complied with subsection (2) in the notice with respect to that issue; and (b) with respect to the relief sought in respect of that issue as specified by the person in the notice. Application of limitations (5) If a particular assessment is made under subsection (8) as a result of an objection made by a person to an earlier assessment, subsection (4) does not limit the right of the person to object to the particular assessment in respect of an issue that was part of the particular assessment and not part of the earlier assessment. Limitation on objections (6) Despite subsection (1), a person is not permitted to make an objection in respect of an issue for which the person has waived the right of objection. Acceptance of objection (7) The Minister may accept a notice of objection even if it was not filed in the form and manner prescribed by the Minister. Consideration of objection (8) On receipt of a notice of objection, the Minister must, without delay, reconsider the assessment and vacate, confirm or vary it or make a reassessment. Waiving reconsideration (9) If, in a notice of objection, a person that wishes to appeal directly to the Tax Court of Canada requests the Minister not to reconsider the assessment objected to, the Minister may confirm the assessment without reconsideration. Notice of decision (10) After reconsidering an assessment under subsection (8) or confirming an assessment under subsection (9), the Minister must, in writing, notify the person objecting to the assessment of the Minister’s decision. Payment by Minister on objection (11) If the variation of an assessment for a particular calendar year as a result of an objection establishes that a person has paid an amount in excess of the amount determined on that assessment to be payable by the person, the Minister must pay to the person a refund of the amount of the excess together with interest, at the rate prescribed by regulation, on the amount of the excess for the period beginning on the day that is the later of July 30 of the following calendar year and the day on which the excess was paid and ending on the day on which the refund is paid. Extension of time by Minister 73 (1) If no objection to an assessment is filed under section 72 within the time limited by this Act, a person may apply to the Minister for an extension of the time for filing a notice of objection and the Minister may grant the application. Contents of application (2) An application under subsection (1) must set out the reasons for which the notice of objection was not filed within the time limited by this Act for doing so. How application made (3) An application under subsection (1) must be made to the Assistant Commissioner of the Appeals Branch of the Agency in the form and manner prescribed by the Minister and must be accompanied by a copy of the notice of objection. Defect in application (4) The Minister may accept an application under subsection (1) even though it was not made in accordance with subsection (3). Duties of Minister (5) On receipt of an application under subsection (1), the Minister must, without delay, consider the application and grant or refuse it, and notify the person in writing of the decision. Date of objection if application granted (6) If an application under subsection (1) is granted, the notice of objection is deemed to have been filed on the day of the decision of the Minister. Conditions for grant of application (7) An application may be granted under this section only if (a) the application is made within one year after the expiry of the time limited by this Act for objecting; and (b) the person demonstrates that (i) within the time limited by this Act for objecting, the person (A) was unable to act or to give a mandate to act in the person’s name, or (B) had a bona fide intention to object to the assessment, (ii) given the reasons set out in the application and the circumstances of the case, it would be just and equitable to grant the application, and (iii) the application was made as soon as circumstances permitted. DIVISION K Appeal Extension of time by Tax Court of Canada 74 (1) A person that has made an application under section 73 may apply to the Tax Court of Canada to have the application granted after either (a) the Minister has refused the application; or (b) 90 days have elapsed after the day on which the application was made and the Minister has not notified the person of the Minister’s decision. When application may not be made (2) A person is not permitted to make an application under subsection (1) after the expiry of 30 days after the day on which notification of the decision referred to in subsection 73 (5) was sent to the person. How application made (3) An application under subsection (1) must be made by filing in the Registry of the Tax Court of Canada, in accordance with the Tax Court of Canada Act , the documents referred to in subsection 73 (3) and the notification, if any, referred to in subsection 73 (5). Copy to the Commissioner (4) The Tax Court of Canada must send a copy of any application received under subsection (3) to the Commissioner. Powers of Tax Court of Canada (5) The Tax Court of Canada may dispose of an application received under subsection (3) by dismissing or granting it and, in granting it, the Court may impose any terms that it considers just or order that the notice of objection be deemed to be a valid objection as of the date of the order. Conditions for grant of application (6) An application is to be granted by the Tax Court of Canada under this section only if (a) the application under subsection 73 (1) is made within one year after the expiry of the time limited by this Act for objecting; and (b) the person demonstrates that (i) within the time limited by this Act for objecting, the person (A) was unable to act or to give a mandate to act in the person’s name, or (B) had a bona fide intention to object to the assessment, (ii) given the reasons set out in the application under this section and the circumstances of the case, it would be just and equitable to grant the application, and (iii) the application under subsection 73 (1) was made as soon as circumstances permitted. Appeal to Tax Court of Canada 75 (1) Subject to subsection (2), a person that has filed a notice of objection to an assessment may appeal to the Tax Court of Canada to have the assessment varied or vacated, or a reassessment made, after either (a) the Minister has confirmed the assessment or has made a reassessment, or (b) 180 days have elapsed after the day on which the notice of objection was filed and the Minister has not notified the person that the Minister has vacated or confirmed the assessment or has made a reassessment. No appeal (2) A person is not permitted to institute an appeal under subsection (1) after the expiry of 90 days after the day on which the notice that the Minister has confirmed the assessment or made a reassessment is sent to the person under subsection 72 (10). Amendment of appeal (3) The Tax Court of Canada may, on any terms that it sees fit, authorize a person that has instituted an appeal in respect of a matter to amend the appeal to include any further assessment in respect of the matter that the person is entitled under this section to appeal. Extension of time to appeal 76 (1) If no appeal to the Tax Court of Canada under section 75 has been instituted within the time limited by that section for doing so, a person may make an application to the Tax Court of Canada for an order extending the time within which an appeal may be instituted, and the Court may make an order extending the time for appealing and may impose any terms that it considers just. Contents of application (2) An application under subsection (1) must set out the reasons why the appeal was not instituted within the time limited by section 75 for doing so. How application made (3) An application under subsection (1) must be made by filing in the Registry of the Tax Court of Canada, in accordance with the Tax Court of Canada Act , the application and the notice of appeal. Copy to Deputy Attorney General of Canada (4) The Tax Court of Canada must send a copy of any application under subsection (1) to the office of the Deputy Attorney General of Canada. Conditions for order to be made (5) An order may be made under this section only if (a) the application under subsection (1) is made within one year after the expiry of the time limited by section 75 for appealing; and (b) the person demonstrates that (i) within the time limited by section 75 for appealing, the person (A) was unable to act or to give a mandate to act in the person’s name, or (B) had a bona fide intention to appeal, (ii) given the reasons set out in the application and the circumstances of the case, it would be just and equitable to grant the application, (iii) the application was made as soon as circumstances permitted, and (iv) there are reasonable grounds for the appeal. Limitation on appeals 77 (1) Despite section 75 , if a person has filed a notice of objection to an assessment, the person may appeal to the Tax Court of Canada to have the assessment vacated, or a reassessment made, only with respect to (a) an issue in respect of which the person has complied with subsection 72 (2) in the notice and the relief sought in respect of the issue as specified in the notice; or (b) an issue referred to in subsection 72 (5), if the person was not required to file a notice of objection to the assessment that gave rise to the issue. No appeal if waiver (2) Despite section 75 , a person is not permitted to appeal to the Tax Court of Canada to have an assessment vacated or varied in respect of an issue for which the person has waived the right of objection or appeal. Institution of appeals 78 An appeal to the Tax Court of Canada under this Act must be instituted in accordance with the Tax Court of Canada Act . Disposition of appeal 79 (1) The Tax Court of Canada may dispose of an appeal from an assessment by (a) dismissing it; or (b) allowing it and (i) vacating the assessment, (ii) varying the assessment, or (iii) referring the assessment back to the Minister for reconsideration and reassessment. Partial disposition of appeal (2) If an appeal raises more than one issue, the Tax Court of Canada may, with the written consent of the parties to the appeal, dispose of a particular issue by (a) dismissing the appeal with respect to the particular issue; or (b) allowing the appeal with respect to the particular issue and (i) varying the assessment, or (ii) referring the assessment back to the Minister for reconsideration and reassessment. Disposal of remaining issues (3) If a particular issue has been disposed of under subsection (2), the appeal with respect to the remaining issues may continue. Appeal to Federal Court of Appeal (4) If the Tax Court of Canada has disposed of a particular issue under subsection (2), the parties to the appeal may, in accordance with the provisions of the Tax Court of Canada Act or the Federal Courts Act , as they relate to appeals from decisions of the Tax Court of Canada, appeal the disposition to the Federal Court of Appeal as if it were a final judgment of the Tax Court of Canada. References to Tax Court of Canada 80 (1) The Minister and a person may agree that a question arising under this Act, in respect of any assessment or proposed assessment of the person, should be determined by the Tax Court of Canada. Time during consideration not to count (2) For the purposes of making an assessment, filing a notice of objection to an assessment or instituting an appeal from an assessment, the period beginning on the day on which proceedings are instituted in the Tax Court of Canada to have a question determined under subsection (1) and ending on the day on which the question is finally determined is not to be counted in the computation of (a) the seven-year period referred to in subsection 70 (1); (b) the period within which a notice of objection to an assessment may be filed under section 72 ; and (c) the period within which an appeal may be instituted under section 75 . Reference of common questions to Tax Court 81 (1) If the Minister is of the opinion that a question arising out of one and the same transaction or occurrence, or series of transactions or occurrences, is common to assessments or proposed assessments in respect of two or more persons, the Minister may apply to the Tax Court of Canada for a determination of the question. Contents of application (2) An application under subsection (1) must set out (a) the question in respect of which the Minister requests a determination; (b) the names of the persons that the Minister seeks to have bound by the determination; and (c) the facts and reasons on which the Minister relies and on which the Minister based or intends to base the assessments of each person named in the application. Service (3) A copy of any application under subsection (1) must be served by the Minister on each person named in the application and on any other person that, in the opinion of the Tax Court of Canada, is likely to be affected by the determination of the question. Determination of question by Tax Court (4) If the Tax Court of Canada is satisfied that a determination of a question set out in an application under subsection (1) will affect assessments or proposed assessments in respect of two or more persons that have been served with a copy of the application, the Tax Court of Canada may make an order naming the persons in respect of which the question will be determined and may (a) if none of the persons named in the order has appealed from such an assessment, proceed to determine the question in any manner that it considers appropriate; or (b) if one or more of the persons named in the order has or have appealed, make any order that it considers appropriate joining a party or parties to that appeal or those appeals and proceed to determine the question in any manner that it considers appropriate. Determination final and conclusive (5) Subject to subsection (6), if a question set out in an application under subsection (1) is determined by the Tax Court of Canada, the determination is final and conclusive for the purposes of any assessments of persons named in an order by the Court under subsection (4). Appeal (6) If a question set out in an application under subsection (1) is determined by the Tax Court of Canada, the Minister or any of the persons that have been served with a copy of the application and that are named in an order of the Court under subsection (4) may, in accordance with the provisions of this Act, the Tax Court of Canada Act or the Federal Courts Act , as they relate to appeals from decisions of the Tax Court of Canada, appeal from the determination. Parties to appeal (7) The parties that are bound by a determination under subsection (4) are parties to any appeal from the determination. Time during consideration not to count (8) For the purposes of making an assessment, filing a notice of objection to an assessment or instituting an appeal from an assessment, the period referred to in subsection (9) must not be counted in the computation of (a) the seven-year period referred to in subsection 70 (1); (b) the period within which a notice of objection to an assessment may be filed under section 72 ; and (c) the period within which an appeal may be instituted under section 75 . Excluded periods (9) The period that is not to be counted in the computation of the periods referred to in paragraphs (8)(a) to (c) is the period beginning on the day on which a copy of an application made under this section is served on a person under subsection (3) and (a) in the case of a person named in an order of the Tax Court of Canada under subsection (4), ending on the day on which the determination becomes final and conclusive; and (b) in the case of any other person, ending on the day on which the person is served with a notice that the person has not been named in an order of the Tax Court of Canada under subsection (4). Payment by the Minister on appeal 82 (1) If the Tax Court of Canada, the Federal Court of Appeal or the Supreme Court of Canada has, on the disposition of an appeal in respect of taxes, interest or a penalty payable under this Act by a person, referred an assessment back to the Minister for reconsideration and reassessment, or varied or vacated an assessment, the Minister must, without delay, whether or not an appeal from the decision of the Court has been or may be instituted, (a) where the assessment has been referred back to the Minister, reconsider the assessment and make a reassessment in accordance with the decision of the Court unless otherwise directed in writing by the person; and (b) refund any overpayment resulting from the variation, vacation or reassessment. The Minister may repay any tax, interest or penalties or surrender any security accepted by the Minister for tax, interest or penalties to that person or any other person that has filed another objection or instituted another appeal if, having regard to the reasons given on the disposition of the appeal, the Minister is satisfied that it would be just and equitable to do so, but for greater certainty, the Minister may, in accordance with the provisions of this Act, the Tax Court of Canada Act , the Federal Courts Act or the Supreme Court Act as they relate to appeals from decisions of the Tax Court of Canada or the Federal Court of Appeal, appeal from the decision of the Court despite any variation or vacation of any assessment by the Court or any reassessment made by the Minister under paragraph (a). Interest on refund (2) If a refund is made under subsection (1) in respect of an assessment for a particular calendar year, interest at the rate prescribed by regulation must be paid for the period beginning on the day that is the later of July 30 of the following calendar year and the day on which the overpayment referred to in that subsection was paid and ending on the day on which the refund is paid. DIVISION L Penalties Failure to register when required 83 A taxpayer that does not apply to register as and when required under section 41 is liable to a penalty of $20,000 for each of (a) the calendar year in which it was required to apply to register; (b) the calendar year in which it registers (or is registered under section 44 ), if the year is different from the year referred to in paragraph (a); and (c) the calendar years, if any, between the years referred to in paragraphs (a) and (b). Failure to file return when required 84 (1) A taxpayer that fails to file a return in respect of a calendar year as and when required under section 45 is liable to a penalty equal to the total of (a) an amount equal to 5% of the taxpayer’s tax payable under this Act in respect of the year that was unpaid on the day on which the return was required to be filed, and (b) the amount obtained when 1% of that unpaid tax is multiplied by the number of complete months, not exceeding 12, beginning on the day on which the return was required to be filed and ending on the day on which the return is filed. Repeated failure to file — conditions (2) Subsection (3) applies to a taxpayer in respect of a calendar year, if the taxpayer (a) fails to file a return in respect of the year as and when required by section 45 ; (b) fails to comply with a demand sent under section 48 for a return in respect of the year; and (c) was, before the day on which the return referred to in paragraph (a) was required to be filed, liable to a penalty under subsection (1) for a return in respect of any of the three preceding calendar years. Repeated failure to file — penalty (3) If subsection (2) applies to a taxpayer in respect of a calendar year, the taxpayer is liable to a penalty equal to the total of (a) an amount equal to 10% of the taxpayer’s tax payable under this Act in respect of the year that was unpaid on the day on which the return was required to be filed, and (b) the amount obtained when 2% of that unpaid tax is multiplied by the number of complete months, not exceeding 20, beginning on the day on which the return was required to be filed and ending on the day on which the return is filed. False statements or omissions (4) A person who knowingly, or under circumstances amounting to gross negligence, makes or participates in, assents to, or acquiesces in the making of, a false statement or omission in a return, application, form, certificate, statement, document, invoice, record or answer (each of which is in this subsection referred to as a “return”) is liable to a penalty equal to the greater of $5,000 and 25% of the total of (a) if the false statement or omission is relevant to the determination of an amount payable under this Act by the person, the amount, if any, by which (i) the amount that is payable exceeds (ii) the amount that would be payable if it were determined on the basis of the information provided in the return, and (b) if the false statement or omission is relevant to the determination of a refund or any other payment that may be obtained under this Act, the amount, if any, by which (i) the amount that would be the refund or other payment that would be payable if it were determined on the basis of the information provided in the return exceeds (ii) the amount of the refund or other payment that is payable to the person. Failure to provide information 85 A person that fails to provide any information or record as and when required under this Act, or as prescribed by regulation, is liable to a penalty of $2,500 for each such failure, in addition to any other penalty under this Act. However, the person is not liable in the case of any information or record required in respect of another person under subsection 66 (1) or section 104 if a reasonable effort was made by the person to obtain the information or record. Unreasonable appeal 86 If the Tax Court of Canada disposes of an appeal by a person in respect of an amount payable under this Act or if such an appeal has been discontinued or dismissed without trial, the Court may, on the application of the Minister and whether or not the Court awards costs, order the person to pay to the Receiver General for Canada an amount not exceeding 10% of any part of the amount that was in controversy in respect of which the Court determines that there were no reasonable grounds for the appeal, if in the opinion of the Court one of the main purposes for instituting or maintaining any part of the appeal was to defer the payment of any amount payable under this Act. Definitions 87 (1) The following definitions apply in this section. planning activity  includes (a) organizing or creating, or assisting in the organization or creation of, an arrangement, an entity, a plan or a scheme; and (b) participating, directly or indirectly, in the selling of an interest in, or the promotion of, an arrangement, an entity, a plan, a property or a scheme. ( activité de planification ) section 52 avoidance planning  by a transferor or a transferee, means planning activity in respect of a transaction or series of transactions (a) that is, or is part of, a section 52 avoidance transaction; and (b) for which one of the purposes of the transaction or series of transactions is to reduce (i) a transferee’s joint and several, or solidary, liability for tax owing under this Act by the transferor, or (ii) the transferor’s or transferee’s ability to pay any amount that is or that may become owing under this Act. ( planification d’évitement en vertu de l’article 52 ) section 52 avoidance transaction  means a transaction or series of transactions in respect of which (a) the conditions set out in paragraph 52 (7)(a) or (b) are met; or (b) if subsection 52 (7) applied to the transaction or series of transactions, the amount determined under subparagraph 52 (7)(c)(ii) would exceed the amount determined under subparagraph 52 (7)(c)(i). ( opération d’évitement en vertu de l’article 52 ) transferee  refers to “transferee” as used in subsections 52 (2) and (7). ( bénéficiaire du transfert ) transferor  refers to “transferor” as used in subsections 52 (2) and (7). ( auteur du transfert ) Section 52 avoidance penalty (2) Every transferor or transferee that engages in, participates in, assents to or acquiesces in planning activity that the transferor or transferee, as the case may be, knows is section 52 avoidance planning, or would reasonably be expected to know is section 52 avoidance planning, but for circumstances amounting to gross negligence, is liable to a penalty that is the lesser of (a) 50% of the amount payable under this Act (determined without reference to this subsection), the joint and several, or solidary liability for which was sought to be avoided through the planning, and (b) $100,000. General penalty 88 A person that fails to comply with any provision of this Act, or the regulations made under this Act, for which no other penalty is specified in this Act is liable to a penalty of $2,500. Payment of penalties 89 A person that is required to pay a penalty under this Act must pay it, (a) in the case of a penalty payable under section 83 , on the day on which the taxpayer was required to apply to register; (b) in the case of a penalty payable under section 84 , on the day on which the taxpayer was required to file the return; and (c) in any other case, on the day on which the notice of original assessment of the penalty was sent. Waiving or cancelling penalties 90 (1) The Minister may, on or before the day that is 10 calendar years after the end of a calendar year in which a penalty became payable under this Act by a person, or on application by the person on or before that day, waive or cancel all or any portion of that penalty, and may despite subsection 70 (1), make any assessment of the penalty payable by the person that is necessary to take into account the waiver or cancellation of the penalty. Refund of amount waived or cancelled (2) If a person has paid an amount of penalty and the Minister waives or cancels any portion of that amount under subsection (1), the Minister must refund the portion of the amount and pay interest on it at the rate prescribed by regulation beginning on the day that is 30 days after the day on which the Minister received an application in a manner satisfactory to the Minister to apply that subsection (or, if there is no such application, on the day on which the Minister waives or cancels the portion of the amount) and ending on the day on which the portion of the amount is paid as a refund or applied against another amount owed by the person to His Majesty in right of Canada. DIVISION M Offences and Punishment Failure to file or comply 91 (1) A person that fails to file a return as and when required under this Act or that fails to comply with an obligation under subsection 65 (6) or (8) or section 66 , or an order made under section 97 , is guilty of an offence and, in addition to any penalty otherwise provided under this Act, is liable on summary conviction to a fine of not less than $2,000 and not more than $40,000. Saving (2) A person that is convicted of an offence under subsection (1) for a failure to comply with a provision of this Act is not liable to a penalty imposed under this Act for the same failure, unless a notice of assessment for the penalty was issued before the information or complaint giving rise to the conviction was laid or made. Offences for false or deceptive statement 92 (1) A person commits an offence that (a) makes, or participates in, assents to or acquiesces in the making of, a false or deceptive statement in a return, application, form, certificate, statement, document, invoice, record or answer filed or made under this Act; (b) for the purposes of evading payment of any amount payable under this Act, or obtaining a refund or other payment payable under this Act to which the person is not entitled, (i) destroys, alters, mutilates, conceals or otherwise disposes of any records of a person, or (ii) makes, or assents to or acquiesces in the making of, a false or deceptive entry, or omits, or assents to or acquiesces in the omission, to enter a material particular in the records of a person; (c) intentionally, in any manner, evades or attempts to evade compliance with this Act or payment of an amount payable under this Act; (d) intentionally, in any manner, obtains or attempts to obtain a refund or other payment payable under this Act to which the person is not entitled; or (e) conspires with any person to commit an offence described in any of paragraphs (a) to (d). Punishment (2) A person that commits an offence under subsection (1) is guilty of an offence punishable on summary conviction and, in addition to any penalty otherwise provided under this Act, is liable to a fine of not less than 50% and not more than 200% of the amount payable that was sought to be evaded, or of the refund or other payment sought, or, if the amount that was sought to be evaded cannot be ascertained, a fine of not less than $2,000 and not more than $40,000. Prosecution on indictment (3) A person that is charged with an offence described in subsection (1) may, at the election of Attorney General of Canada, be prosecuted on indictment and, if convicted, is, in addition to any penalty otherwise provided for under this Act, liable to a fine of not less than 100% and not more than 200% of the amount payable that was sought to be evaded, or of the refund or other payment sought, or, if the amount that was sought to be evaded cannot be ascertained, a fine of not less than $5,000 and not more than $100,000. Penalty on conviction (4) A person that is convicted of an offence under subsection (1) is not liable to a penalty imposed under this Act for the same evasion or attempt unless a notice of assessment for that penalty was issued before the information or complaint giving rise to the conviction was laid or made. Stay of appeal (5) If, in any appeal under this Act, substantially the same facts are at issue as those that are at issue in a prosecution under this section, the Minister may file a stay of proceedings with the Tax Court of Canada and, on that filing, the proceedings before the Tax Court of Canada are stayed pending a final determination of the outcome of the prosecution. Failure to pay tax 93 A person that intentionally fails to pay tax as and when required under this Act is guilty of an offence punishable on summary conviction and, in addition to any penalty or interest otherwise provided for under this Act, is liable to a fine not exceeding 20% of the amount of the tax that should have been paid. Offence — confidential information 94 (1) A person is guilty of an offence and liable on summary conviction to a fine not exceeding $5,000 if the person (a) contravenes subsection 108 (2); or (b) knowingly contravenes an order made under subsection 108 (7). Offence — confidential information (2) A person to whom confidential information has been provided for a particular purpose under subsection 108 (6) and that for any other purpose knowingly uses, provides to any person, allows the provision to any person of, or allows any person access to, that information is guilty of an offence and is liable on summary conviction to a fine not exceeding $5,000. Definition of confidential information (3) In subsection (2), confidential information has the same meaning as in subsection 108 (1). General offence 95 A person that fails to comply with any provision of this Act, or the regulations made under this Act, for which no other offence is specified in this Act is guilty of an offence punishable on summary conviction and is liable to a fine of not more than $100,000. Defence of due diligence 96 No person is to be convicted of an offence under section 91 or 95 of this Act if the person establishes that they exercised all due diligence to prevent the commission of the offence. Compliance orders 97 If a person is convicted by a court of an offence for a failure to comply with a provision of this Act, the court may make any order that it deems appropriate to enforce compliance with the provision. Officers of corporations, etc. 98 If a person other than an individual commits an offence under this Act, every officer, director or representative of the person who directed, authorized, assented to, acquiesced in, or participated in, the commission of the offence is a party to and is guilty of the offence and is liable on conviction to the punishment provided for the offence, whether or not the person has been prosecuted or convicted. Power to decrease punishment 99 Despite the Criminal Code or any other law, the court does not have the power to impose less than the minimum fine fixed under this Act in any prosecution or proceeding under this Act. Information or complaint 100 (1) An information or complaint under this Act may be laid or made by any official of the Agency, by a member of the Royal Canadian Mounted Police or by any person authorized to do so by the Minister and, if an information or complaint purports to have been laid or made under this Act, it is deemed to have been laid or made by a person so authorized by the Minister and is not to be called in question for lack of authority of the informant or complainant, except by the Minister or a person acting for the Minister or for His Majesty in right of Canada. Two or more offences (2) An information or complaint in respect of an offence under this Act may be for one or more offences, and no information, complaint, warrant, conviction or other proceeding in a prosecution under this Act is objectionable or insufficient by reason of the fact that it relates to two or more offences. Territorial jurisdiction (3) An information or complaint in respect of an offence under this Act may be heard, tried or determined by any court having territorial jurisdiction where the accused is resident, carrying on a commercial activity, found, apprehended or in custody, even if the matter of the information or complaint did not arise within that territorial jurisdiction. Limitation of prosecutions (4) No proceeding by way of summary conviction in respect of an offence under this Act may be instituted more than eight years after the day on which the subject matter of the proceeding arose, unless the prosecutor and the defendant agree that it may be instituted after the eight years. DIVISION N Inspections Authorized person 101 (1) A person authorized by the Minister (in this section referred to as an “authorized person”) to do so may, at all reasonable times, for any purpose related to the administration or enforcement of this Act, inspect, audit or examine the records, processes, property or premises of a particular person that may be relevant in determining the obligations of the particular person, or any other person, under this Act and whether the particular person, or any such other person, is in compliance with this Act. Powers of authorized person (2) Subject to subsection (3), an authorized person may, at all reasonable times, for any purpose related to the administration or enforcement of this Act (a) enter any place in which the authorized person reasonably believes that the particular person keeps or should keep records, carries on any activity to which this Act applies or does anything in relation to that activity; (b) require any individual to give the authorized person all reasonable assistance, to answer all proper questions relating to the administration or enforcement of this Act and (i) to attend with the authorized person at a place designated by the authorized person, or by video-conference or by another form of electronic communication, and to answer the questions orally, and (ii) to answer the questions in writing, in any form specified by the authorized person; and (c) require any person to give the authorized person all reasonable assistance with anything the authorized person is authorized to do under this Act. Prior authorization (3) If any place referred to in subsection (2) is a dwelling-house, an authorized person may not enter that dwelling-house without the consent of the occupant, except under the authority of a warrant issued under subsection (4). Warrant to enter dwelling-house (4) A judge may on ex parte application by the Minister, issue a warrant authorizing a person to enter a dwelling-house subject to the conditions specified in the warrant if the judge is satisfied by information on oath that (a) there are reasonable grounds to believe that the dwelling-house is a place referred to in subsection (2); (b) entry into the dwelling-house is necessary for any purpose related to the administration or enforcement of this Act; and (c) entry into the dwelling-house has been, or there are reasonable grounds to believe that entry will be, refused. Orders if entry refused (5) If a judge is not satisfied that entry into a dwelling-house is necessary for any purpose related to the administration or enforcement of this Act, the judge may, to the extent that access was or may be expected to be refused and that a record or property is or may be expected to be kept in the dwelling-house, (a) order the occupant of the dwelling-house to provide a person with reasonable access to any record or property that is or should be kept in the dwelling-house; and (b) make any other order that is appropriate in the circumstances to carry out the purposes of this Act. Definition of dwelling-house (6) In this section, dwelling-house means the whole or any part of a building or structure that is kept or occupied as a permanent or temporary residence, and includes (a) a building within the curtilage of a dwelling-house that is connected to it by a doorway or by a covered and enclosed passageway; and (b) a unit that is designed to be mobile and to be used as a permanent or temporary residence and that is being used as such a residence. Compliance order 102 (1) On application by the Minister, a judge may, despite section 97 , order a person to provide any access, assistance, information or record sought by the Minister under section 66 or 101 if the judge is satisfied that the person was required under section 66 or 101 to provide the access, assistance, information or record and did not do so. Notice required (2) An application under subsection (1) must not be heard before the end of five clear days after the day on which the notice of application is served on the person against which the order is sought. Judge may impose conditions (3) A judge who makes an order under subsection (1) may impose any conditions in respect of the order that the judge considers appropriate. Contempt of court (4) If a person fails or refuses to comply with an order under subsection (1), a judge may find the person in contempt of court and the person is subject to the processes and the punishments of the court to which the judge is appointed. Appeal (5) An order by a judge under subsection (1) may be appealed to a court having appellate jurisdiction over decisions of the court to which the judge is appointed. An appeal does not suspend the execution of the order unless it is so ordered by a judge of the court to which the appeal is made. Time period not to count (6) If an application is commenced by the Minister under subsection (1) to order a person to provide any access, assistance, information, or record, the period between the day on which the person files a notice of appearance, or otherwise opposes the application, and the day on which the application is finally disposed of is not to be counted in the computation of the period within which, under subsection 70 (1), an assessment may be made. Search warrants 103 (1) A judge may, on ex parte application by the Minister, issue a warrant authorizing any person named in the warrant to enter and search any building, receptacle or place for any record or thing that may afford evidence of the commission of an offence under this Act and to seize the record or thing and, as soon as is practicable, bring it before, or make a report in respect of it to, the judge or, if that judge is unable to act, another judge of the same court, to be dealt with by the judge in accordance with this section. Evidence on oath (2) An application under subsection (1) must be supported by information on oath establishing the facts on which the application is based. Issue of warrants (3) A judge may issue a warrant under subsection (1) if the judge is satisfied that there are reasonable grounds to believe that (a) an offence under this Act has been committed; (b) a record or thing that may afford evidence of the commission of the offence is likely to be found; and (c) the building, receptacle or place specified in the application is likely to contain a record or thing referred to in paragraph (b). Contents of warrant (4) A warrant issued under subsection (1) must refer to the offence for which it is issued, identify the building, receptacle or place to be searched and the person that is alleged to have committed the offence, and it must be reasonably specific as to any record or thing to be searched for and seized. Seizure (5) Any person that executes a warrant issued under subsection (1) may seize, in addition to the record or thing referred to in that subsection, any other record or thing that the person believes on reasonable grounds affords evidence of the commission of an offence under this Act and must, as soon as is practicable, bring the record or thing before, or make a report in respect of the record or thing to, the judge that issued the warrant or, if that judge is unable to act, another judge of the same court, to be dealt with by the judge in accordance with this section. Retention (6) Subject to subsection (7), if any record or thing seized under subsection (1) or (5) is brought before a judge or a report in respect of the record or thing is made to a judge, the judge must, unless the Minister waives retention, order that the record or thing be retained by the Minister and the Minister must take reasonable care to ensure that the record or thing is preserved until the conclusion of any investigation into the offence in relation to which it was seized or until it is required to be produced for the purposes of a criminal proceeding. Return of records or things seized (7) If any record or thing seized under subsection (1) or (5) is brought before a judge or a report in respect of the record or thing is made to a judge, the judge may, on the judge’s own motion or on application by a person with an interest in the record or thing on three clear days notice of application to the Deputy Attorney General of Canada, order that the record or thing be returned to the person from which the record or thing was seized or to the person that is otherwise legally entitled to the record or thing, if the judge is satisfied that the record or thing (a) will not be required for an investigation or a criminal proceeding; or (b) was not seized in accordance with the warrant or this section. Access and copies (8) A person from which any record or thing is seized under this section is entitled, at all reasonable times and subject to any reasonable conditions that may be imposed by the Minister, to inspect the record or thing and, in the case of a document, to obtain one copy of the record at the expense of the Minister. Definition of foreign-based information or record 104 (1) For the purposes of this section, foreign-based information or record means any information or record that is available or located outside Canada and that may be relevant to the administration or enforcement of this Act. Requirement to provide foreign-based information (2) Despite any other provision of this Act, the Minister may, by notice served personally, sent by confirmed delivery service or sent electronically, require a person resident in Canada or a non-resident person that carries on business in Canada to provide any foreign-based information or record. Content of notice (3) A notice referred to in subsection (2) must set out (a) a reasonable period of not less than 90 days for the provision of the information or record; (b) a description of the information or record being sought; and (c) the consequences under subsection (8) to the person of the failure to provide the information or record being sought within the period set out in the notice. Review by judge (4) If a person is served or sent a notice of a requirement under subsection (2), the person may, within 90 days after the day on which the notice was served or sent, apply to a judge for a review of the requirement. Powers on review (5) On hearing an application under subsection (4) in respect of a requirement, a judge may (a) confirm the requirement; (b) vary the requirement if the judge is satisfied that it is appropriate to do so in the circumstances; or (c) set aside the requirement if the judge is satisfied that it is unreasonable. Related person (6) For the purposes of subsection (5), a requirement to provide information or a record is not to be considered unreasonable because the information or record is under the control of, or available to, a non-resident person that is not controlled by the person on which the notice of the requirement under subsection (2) is served, or to which that notice is sent, if that person is related to the non-resident person. Time during consideration not to count (7) The period between the day on which an application for review of a requirement is made under subsection (4) and the day on which the review is decided is not to be counted in the computation of (a) the period set out in the notice of the requirement; and (b) the period within which an assessment may be made under section 70 . Consequence of failure (8) If a person fails to comply substantially with a notice served or sent under subsection (2) and if the requirement is not set aside under subsection (5), any court having jurisdiction in a civil proceeding relating to the administration or enforcement of this Act must, on motion of the Minister, prohibit the introduction by that person (or by another constituent entity of a consolidated group of which the person is, at any time between the time the notice was served or sent under subsection (2) and the time the motion is heard, a constituent entity) of any foreign-based information or record covered by that notice. Inquiry 105 (1) The Minister may, for any purpose related to the administration or enforcement of this Act, authorize any person, whether or not the person is an official of the Agency, to make any inquiry that the Minister may deem necessary with reference to anything relating to the administration or enforcement of this Act. Appointment of hearing officer (2) If the Minister, under subsection (1), authorizes a person to make an inquiry, the Minister must, without delay, apply to the Tax Court of Canada for an order appointing a hearing officer before whom the inquiry will be held. Powers of hearing officer (3) For the purposes of an inquiry authorized under subsection (1), a hearing officer appointed under subsection (2) in relation to the inquiry has all the powers conferred on a commissioner by sections 4 and 5 of the Inquiries Act and that may be conferred on a commissioner under section 11 of that Act. When powers to be exercised (4) A hearing officer appointed under subsection (2) in relation to an inquiry must exercise the powers conferred on a commissioner by section 4 of the Inquiries Act in relation to any persons that the person authorized to make the inquiry considers appropriate for the conduct of the inquiry. However, the hearing officer is not to exercise the power to punish any person unless, on application by the hearing officer, a judge, including a judge of a county court, certifies that the power may be exercised in the matter disclosed in the application and the hearing officer has given to the person in respect of whom the power is proposed to be exercised 24 hours notice of the hearing of the application, or any shorter notice that the judge considers reasonable. Rights of witnesses (5) Any person that gives evidence in an inquiry authorized under subsection (1) is entitled to be represented by counsel and, on request made by the person to the Minister, to receive a transcript of that evidence. Rights of person investigated (6) Any person whose affairs are investigated in the course of an inquiry authorized under subsection (1) is entitled to be present and to be represented by counsel throughout the inquiry unless the hearing officer appointed under subsection (2), on application by the Minister or a person giving evidence, orders otherwise in relation to all or any part of the inquiry on the ground that the presence of the person and the person’s counsel, or either of them, would be prejudicial to the effective conduct of the inquiry. Copies 106 If any record is seized, inspected, audited, examined or provided under any of sections 66 , 101 to 103 and 105 , the person by whom it is seized, inspected, audited or examined or to whom it is provided or any official of the Agency may make or cause to be made one or more copies of it and, in the case of an electronic record, make or cause to be made a print-out of the electronic record, and any copy or print-out of the record purporting to be certified by the Minister or an authorized person to be a copy or print-out made under this section is evidence of the nature and content of the original record and has the same probative force as the original record would have if it were proven in the ordinary way. Compliance 107 A person must, unless the person is unable to do so, do everything the person is required to do under any of sections 66 , 101 to 104 and 106 and no person is to, physically or otherwise, do or attempt to do any of the following: (a) interfere with, hinder or molest any official doing anything the official is authorized to do under this Act; and (b) prevent any official from doing anything the official is authorized to do under this Act. DIVISION O Confidentiality of Information Definitions 108 (1) The following definitions apply in this section. authorized person  means a person who is engaged or employed, or who was formerly engaged or employed, by or on behalf of His Majesty in right of Canada to assist in carrying out the provisions of this Act. ( personne autorisée ) confidential information  means information of any kind and in any form that relates to one or more persons and that is (a) obtained by or on behalf of the Minister for the purposes of this Act; or (b) prepared from information referred to in paragraph (a). It does not include information that does not directly or indirectly reveal the identity of the person to whom it relates. ( renseignement confidentiel ) court of appeal  has the same meaning as in section 2 of the Criminal Code . ( cour d’appel ) Provision of confidential information (2) Except as authorized under this section, an official must not knowingly (a) provide, or allow to be provided, to any person any confidential information; (b) allow any person to have access to any confidential information; or (c) use any confidential information other than in the course of the administration or enforcement of this Act. Confidential information evidence not compellable (3) Despite any other Act of Parliament or other law, no official is required, in connection with any legal proceedings, to give or produce evidence relating to any confidential information. Communications — proceedings (4) Subsections (2) and (3) do not apply in respect of (a) criminal proceedings, by way of either indictment or summary conviction, that have been commenced by the laying of an information or the preferring of an indictment under an Act of Parliament; (b) any legal proceedings relating to the administration or enforcement of this Act, the Canada Pension Plan , the Employment Insurance Act or any other Act of Parliament or law of a province that provides for the payment of a tax or duty, before a court of record, including a court of record in a jurisdiction outside Canada; or (c) any legal proceedings under an international agreement relating to trade before (i) a court of record, including a court of record in a jurisdiction outside Canada, (ii) an international organization, or (iii) a dispute settlement panel or an appellate body created under an international agreement relating to trade. Authorized provision of confidential information (5) The Minister may provide appropriate persons with any confidential information that may reasonably be regarded as necessary solely for a purpose relating to the life, health or safety of an individual. Disclosure of confidential information (6) An official may (a) provide to a person any confidential information that may reasonably be regarded as necessary for the purpose of (i) the administration or enforcement of this Act, solely for that purpose, or (ii) determining any liability or obligation of the person or any refund or other payment to which the person is or may become entitled under this Act; (b) provide, allow to be provided, or allow inspection of or access to any confidential information to or by (i) any person, or any person within a class of persons, that the Minister may authorize, subject to any conditions that the Minister may specify, or (ii) any person otherwise legally entitled to the information because of an Act of Parliament, solely for the purposes for which that person is entitled to the information; (c) provide confidential information (i) to an official of the Department of Finance solely for the purposes of the administration of a federal-provincial agreement made under the Federal-Provincial Fiscal Arrangements Act , (ii) to an official solely for the purpose of the formulation, evaluation or implementation of a fiscal or trade policy or for the purposes of the administration or enforcement of any Act of Parliament or law of a province that provides for the imposition or collection of a tax or duty or an international agreement relating to trade, (iii) to an official solely for the purposes of the negotiation or implementation of an international agreement relating to trade, a tax treaty or an agreement for the exchange of information for tax purposes, (iv) to an official as to the name, address, occupation, size or type of business of a person, solely for the purposes of enabling that department or agency to obtain statistical data for research and analysis, (v) to an official solely for the purposes of setting off, against any sum of money that may be payable by His Majesty in right of Canada, a debt due to (A) His Majesty in right of Canada, or (B) His Majesty in right of a province on account of taxes payable to the province if an agreement exists between Canada and the province under which Canada is authorized to collect taxes on behalf of the province, or (vi) to an official solely for the purposes of section 7.1 of the Federal-Provincial Fiscal Arrangements Act ; (d) provide confidential information to an official or any person employed by or representing the government of a foreign state, an international organization established by the governments of states, a community of states, or an institution of any such government or organization, in accordance with an international convention, agreement or other written arrangement relating to trade between the Government of Canada or an institution of the Government of Canada and the government of the foreign state, the organization, the community or the institution, solely for the purposes set out in that arrangement; (e) provide confidential information, or allow the inspection of or access to confidential information, solely for the purposes of a provision contained in a listed international agreement or in a tax treaty (as those terms are defined in subsection 248(1) of the Income Tax Act ); (f) provide confidential information solely for the purposes of sections 23 to 25 of the Financial Administration Act ; (g) use confidential information to compile information in a form that does not directly or indirectly reveal the identity of the person to whom the information relates; (h) use, or provide to any person, confidential information solely for a purpose relating to the supervision, evaluation or discipline of an authorized person by His Majesty in right of Canada in respect of a period during which the authorized person was employed by or engaged by or on behalf of His Majesty in right of Canada to assist in the administration or enforcement of this Act, to the extent that the information is relevant for that purpose; (i) provide access to records of confidential information to the Librarian and Archivist of Canada or a person acting on behalf of or under the direction of the Librarian and Archivist, solely for the purposes of section 12 of the Library and Archives of Canada Act , and transfer such records to the care and control of such persons solely for the purposes of section 13 of that Act; (j) use confidential information relating to a person to provide information to that person; (k) provide confidential information to a police officer , as defined in subsection 462.48(17) of the Criminal Code , solely for the purpose of investigating whether an offence has been committed under the Criminal Code , or the laying of an information or the preferring of an indictment, if (i) that information can reasonably be regarded as being relevant for the purpose of ascertaining the circumstances in which an offence under the Criminal Code may have been committed, or the identity of the person or persons who may have committed an offence, with respect to an official, or with respect to any person related to that official, (ii) the official was or is engaged in the administration or enforcement of this Act, and (iii) the offence can reasonably be considered to be related to that administration or enforcement; and (l) provide information to a law enforcement officer of an appropriate police organization in the circumstances described in subsection 211(6.4) of the Excise Act, 2001 . Measures to prevent unauthorized use or disclosure (7) The person presiding at a legal proceeding relating to the supervision, evaluation or discipline of an authorized person may order any measures that are necessary to ensure that confidential information is not used or provided to any person for any purpose not relating to that proceeding, including (a) holding a hearing in camera ; (b) banning the publication of the information; (c) concealing the identity of the person to whom the information relates; and (d) sealing the records of the proceeding. Disclosure to person or on consent (8) An official may provide confidential information relating to a person (a) to that person; and (b) with the consent of that person, to any other person. Appeal from order or direction (9) An order or direction that is made in the course of or in connection with any legal proceedings and that requires an official to give or produce evidence relating to any confidential information may, by notice served on all interested parties, be appealed without delay by the Minister or by the person against whom the order or direction is made to (a) the court of appeal of the province in which the order or direction is made, in the case of an order or direction made by a court or other tribunal established under the laws of the province, whether or not that court or tribunal is exercising a jurisdiction conferred by the laws of Canada; or (b) the Federal Court of Appeal, in the case of an order or direction made by a court or other tribunal established under the laws of Canada. Disposition of appeal (10) The court to which an appeal is taken under subsection (9) may allow the appeal and quash the order or direction appealed from or dismiss the appeal, and the rules of practice and procedure from time to time governing appeals to the courts apply, with such modifications as the circumstances require, to an appeal instituted under that subsection. Stay (11) An appeal instituted under subsection (9) stays the operation of the order or direction appealed from until judgment is pronounced. DIVISION P Collection Definitions 109 (1) The following definitions apply in this section. action  means an action to collect a tax debt of a person and includes a proceeding in a court and anything done by the Minister under any of sections 112 to 117 . ( action ) legal representative  of a person means a trustee in bankruptcy, an assignee, a liquidator, a curator, a receiver of any kind, a trustee, an heir, an administrator, an executor, a liquidator of a succession, a committee, or any other similar person, administering, winding up, controlling or otherwise dealing in a representative or fiduciary capacity with any property, business, commercial activity or estate or succession that belongs or belonged to, or that is or was held for the benefit of, the person or the person’s estate or succession. ( représentant légal ) tax debt  means any amount payable by a person under this Act. ( dette fiscale ) Debts to His Majesty (2) A tax debt is a debt due to His Majesty in right of Canada and is recoverable as such in the Federal Court or any other court of competent jurisdiction or in any other manner provided under this Act. Court proceedings (3) The Minister may not commence a proceeding in a court to collect a tax debt of a person in respect of an amount that may be assessed under this Act unless when the proceeding is commenced the person has been assessed for that amount. No actions after limitation period (4) The Minister may not commence an action to collect a tax debt after the end of the limitation period for the collection of the tax debt. Limitation period (5) The limitation period for the collection of a tax debt of a person (a) begins (i) if a notice of assessment in respect of the tax debt, or a notice referred to in subsection 118 (1) in respect of the tax debt, is sent to or served on the person, on the day that is 90 days after the day on which the last one of those notices is sent or served, and (ii) if no notice referred to in subparagraph (i) in respect of the tax debt was sent or served, on the earliest day on which the Minister can commence an action to collect that tax debt, and (b) ends, subject to subsection (9), on the day that is 10 years after the day on which it begins. Limitation period restarted (6) The limitation period referred to in subsection (5) for the collection of a tax debt of a person restarts (and ends, subject to subsection (9), on the day that is 10 years after the day on which it restarts) on any day, before it would otherwise end, on which (a) the person acknowledges the tax debt in accordance with subsection (7); (b) all or part of the tax debt is reduced by the application of a refund under section 61 ; (c) the Minister commences an action to collect the tax debt; or (d) the Minister assesses, under this Act, another person in respect of the tax debt. Acknowledgement of tax debts (7) A person acknowledges a tax debt if the person (a) promises, in writing, to pay the tax debt; (b) makes a written acknowledgement of the tax debt, whether or not a promise to pay can be inferred from the acknowledgement and whether or not it contains a refusal to pay; or (c) makes a payment, including a purported payment by way of a negotiable instrument that is dishonoured, on account of the tax debt. Agent or mandatary or legal representative (8) For the purposes of this section, an acknowledgement made by a person’s agent or mandatary or legal representative has the same effect as if it were made by the person. Extension of limitation period (9) In computing the day on which a limitation period ends, there must be added the number of days on which one or more of the following is the case: (a) the Minister has postponed the collection action against the person under subsection (11) in respect of the tax debt; (b) the Minister has accepted and holds security in lieu of payment of the tax debt; (c) if the person was resident in Canada on the applicable day referred to in paragraph (5)(a) in respect of the tax debt, the person is non-resident; (d) the Minister may not, because of any of subsections 110 (2) to (5), take any of the actions referred to in subsection 110 (1) in respect of the tax debt; and (e) an action that the Minister may otherwise take in respect of the tax debt is restricted or not permitted under any provision of the Bankruptcy and Insolvency Act , of the Companies’ Creditors Arrangement Act or of the Farm Debt Mediation Act . Assessment before collection (10) The Minister may not take any collection action under sections 112 to 117 in respect of any amount payable by a person that may be assessed under this Act, other than interest under section 56 , unless the amount has been or may be assessed. Postponement of collection (11) The Minister may, subject to any terms and conditions that the Minister may stipulate, postpone collection action against a person in respect of all or any part of any amount assessed that is the subject of a dispute between the Minister and the person. Interest on judgments (12) If a judgment is obtained for any amount payable under this Act, including by the registration of a certificate under section 112 , the provisions of this Act under which interest is payable for a failure to pay an amount apply, with any modifications that the circumstances require, to the failure to pay the judgment debt and the interest is recoverable in the same manner as the judgment debt. Litigation costs (13) If an amount is payable by a person to His Majesty in right of Canada because of an order, judgment or award of a court in respect of the costs of litigation relating to a matter to which this Act applies, sections 112 to 118 apply to the amount as if it were payable under this Act. Collection restrictions 110 (1) If a person is liable for the payment of an amount under this Act, the Minister must not, for the purpose of collecting the amount, take any of the following actions until the end of 90 days after the date of a notice of assessment issued under this Act in respect of the amount: (a) commence legal proceedings in a court; (b) certify the amount under section 112 ; (c) require a person to make a payment under subsection 113 (1); (d) require an institution (within the meaning of subsection 113 (2)) or a person to make a payment under subsection 113 (2); (e) require a person to turn over moneys under subsection 116 (1); and (f) give a notice, issue a certificate or make a direction under subsection 117 (1). No action after service of notice of objection (2) If a person has served a notice of objection under this Act to an assessment of an amount payable under this Act, the Minister must not, for the purpose of collecting the amount in controversy, take any of the actions referred to in subsection (1) until the end of 90 days after the date of the notice to the person that the Minister has confirmed or varied the assessment. No action after appeal (3) If a person has appealed to the Tax Court of Canada from an assessment of an amount payable under this Act, the Minister must not, for the purpose of collecting the amount in controversy, take any of the actions referred to in subsection (1) before the earlier of the day on which a copy of the decision of the Court is mailed to the person and the day on which the person discontinues the appeal. No action pending determination (4) If a person has agreed under subsection 80 (1) that a question should be determined by the Tax Court of Canada, or if a person is served with a copy of an application made under subsection 81 (1) to that Court for the determination of a question, the Minister must not take any of the actions referred to in subsection (1) for the purpose of collecting that part of an amount assessed, the liability for payment of which could be affected by the determination of the question, before the day on which the question is determined by the Court. Action after judgment (5) Despite any other provision of this section, if a person has served a notice of objection under this Act to an assessment or has appealed to the Tax Court of Canada from an assessment and agrees in writing with the Minister to delay proceedings on the objection or appeal, as the case may be, until judgment has been given in another action before the Tax Court of Canada, the Federal Court of Appeal or the Supreme Court of Canada in which the issue is the same, or substantially the same, as that raised in the objection or appeal of the person, the Minister may take any of the actions referred to in subsection (1) for the purpose of collecting the amount assessed, or a part of it, determined in a manner consistent with the judgment of the Court in the other action at any time after the Minister notifies the person in writing that the judgment has been given by the Court in the other action. Collection of large amounts (6) Despite subsections (1) to (5), if, at any time, the total of all amounts that a person has been assessed under this Act and that remain unpaid exceeds $1,000,000, the Minister may collect up to 50% of the total. Security 111 (1) The Minister may, if the Minister considers it advisable, accept security in an amount and a form satisfactory to the Minister for the payment of any amount that is or may become payable under this Act. Surrender of excess security (2) If a person that has given security, or on whose behalf security has been given, under this section requests in writing that the Minister surrender the security or any part of it, the Minister must surrender the security to the extent that its value exceeds, at the time the request is received by the Minister, the amount that is sought to be secured. Additional security (3) The adequacy of security furnished by or on behalf of a person under subsection (1) is to be determined by the Minister, and the Minister may require additional security to be given or maintained from time to time by or on behalf of the person if the Minister determines that the security that has been given or maintained is no longer adequate. Certificates 112 (1) Any amount payable by a person (in this section referred to as the “debtor”) under this Act that has not been paid as and when required under this Act may be certified by the Minister as an amount payable by the debtor. Registration in court (2) On production to the Federal Court, a certificate made under subsection (1) in respect of a debtor is to be registered in the Court and, when so registered, has the same effect, and all proceedings may be taken on the certificate as if it were a judgment obtained in the Court against the debtor for a debt in the amount certified plus interest on the amount as provided under this Act to the day of payment and, for the purposes of those proceedings, the certificate is deemed to be a judgment of the Court against the debtor for a debt due to His Majesty in right of Canada and enforceable as such. Costs (3) All reasonable costs and charges incurred or paid for the registration in the Federal Court of a certificate made under subsection (1), or in respect of any proceedings taken to collect the amount certified, are recoverable in the same manner as if they had been included in the amount certified in the certificate when it was registered. Charge on property (4) A document issued by the Federal Court that is evidence of a registered certificate in respect of a debtor, a writ of that Court issued in accordance with the certificate or any notification of the document or writ (which document, writ or notification is in this section referred to as a “memorial”) may be filed, registered or otherwise recorded for the purpose of creating a charge, lien or priority on, or a binding interest in, property in a province, or any interest in, or for civil law any right in, such property, held by the debtor, in the same manner as a document that is evidence of (a) a judgment of the superior court of the province against a person for a debt owing by the person, or (b) an amount payable or required to be remitted by a person in the province in respect of a debt owing to His Majesty in right of the province may be filed, registered or otherwise recorded in accordance with the law of the province to create a charge, lien or priority on, or a binding interest in, the property or interest. Creation of charge (5) If a memorial has been filed, registered or otherwise recorded under subsection (4), (a) a charge, lien or priority is created on, or a binding interest is created in, property in the province, or any interest in, or for civil law any right in, such property, held by the debtor, or (b) such property, or interest or right in the property, is otherwise bound, in the same manner and to the same extent as if the memorial were a document that is evidence of a judgment referred to in paragraph (4)(a) or an amount referred to in paragraph (4)(b), and the charge, lien, priority or binding interest created is subordinate to any charge, lien, priority or binding interest in respect of which all steps necessary to make it effective against other creditors were taken before the day on which the memorial was filed, registered or otherwise recorded. Proceedings in respect of memorial (6) If a memorial is filed, registered or otherwise recorded in a province under subsection (4), proceedings may be taken in the province in respect of the memorial, including proceedings (a) to enforce payment of the amount evidenced by the memorial, interest on the amount and all costs and charges paid or incurred in respect of (i) the filing, registration or other recording of the memorial, and (ii) proceedings taken to collect the amount, (b) to renew or otherwise prolong the effectiveness of the filing, registration or other recording of the memorial, (c) to cancel or withdraw the memorial wholly or in respect of any of the property, or interests or rights, affected by the memorial, or (d) to postpone the effectiveness of the filing, registration or other recording of the memorial in favour of any right, charge, lien or priority that has been or is intended to be filed, registered or otherwise recorded in respect of any property, or interest or rights, affected by the memorial, in the same manner and to the same extent as if the memorial were a document that is evidence of a judgment referred to in paragraph (4)(a) or an amount referred to in paragraph (4)(b). However, if in any such proceeding or as a condition precedent to any such proceeding, any order, consent or ruling is required under the law of the province to be made or given by the superior court of the province or by a judge or official of the court, a similar order, consent or ruling may be made or given by the Federal Court or by a judge or official of the Federal Court and, when so made or given, has the same effect for the purposes of the proceeding as if it were made or given by the superior court of the province or by a judge or official of the court. Presentation of documents (7) If (a) a memorial is presented for filing, registration or other recording under subsection (4), or a document relating to the memorial is presented for filing, registration or other recording for the purpose of any proceeding referred to in subsection (6), to any official in the land registry system, personal property or movable property registry system, or other registry system, of a province, or (b) access is sought to any person, place or thing in a province to make the filing, registration or other recording, the memorial or document must be accepted for filing, registration or other recording or the access must be granted, as the case may be, in the same manner and to the same extent as if the memorial or document relating to the memorial were a document that is evidence of a judgment referred to in paragraph (4)(a) or an amount referred to in paragraph (4)(b) for the purpose of a similar proceeding. However, if the memorial or document is issued by the Federal Court or signed or certified by a judge or official of the Court, any affidavit, declaration or other evidence required under the law of the province to be provided with or to accompany the memorial or document in the proceedings is deemed to have been provided with or to have accompanied the memorial or document as so required. Prohibition — sale, etc., without consent (8) Despite any other law of Canada or law of a province, a sheriff or other person must not, without the written consent of the Minister, sell or otherwise dispose of any property or publish any notice or otherwise advertise in respect of any sale or other disposition of any property as a result of any process issued or charge, lien, priority or binding interest created in any proceeding to collect an amount certified in a certificate made under subsection (1), interest on the amount or costs. However, if that consent is subsequently given, any property that would have been affected by that process, charge, lien, priority or binding interest if the Minister’s consent had been given at the time the process was issued or the charge, lien, priority or binding interest was created, as the case may be, is to be bound, seized, attached, charged or otherwise affected as it would have been if that consent had been given at the time that process was issued or the charge, lien, priority or binding interest was created, as the case may be. Completion of notices, etc. (9) If information required to be set out by any sheriff or other person in a minute, notice or document required to be completed for any purpose cannot, because of subsection (8), be so set out without the written consent of the Minister, the sheriff or other person must complete the minute, notice or document to the extent possible without that information and, when that consent of the Minister is given, a further minute, notice or document setting out all the information must be completed for the same purpose, and the sheriff or other person, having complied with this subsection, is deemed to have complied with the Act, regulation or rule requiring the information to be set out in the minute, notice or document. Application for order (10) A sheriff or other person who is unable, because of subsection (8) or (9), to comply with any law or rule of court is bound by any order made by a judge of the Federal Court, on an ex parte application by the Minister, for the purpose of giving effect to the proceeding, charge, lien, priority or binding interest. Deemed security (11) If a charge, lien, priority or binding interest created under subsection (5) by filing, registering or otherwise recording a memorial under subsection (4) is registered in accordance with subsection 87(1) of the Bankruptcy and Insolvency Act , it is deemed (a) to be a claim that is secured by a security and that, subject to subsection 87(2) of that Act, ranks as a secured claim under that Act; and (b) to also be a claim referred to in paragraph 86(2)(a) of that Act. Details in certificates and memorials (12) Despite any other law of Canada or a province, in any certificate made under subsection (1) in respect of a debtor, any memorial that is evidence of a certificate or any writ or document issued for the purpose of collecting an amount certified, it is sufficient for all purposes (a) to set out, as the amount payable by the debtor, the total of amounts payable by the debtor without setting out the separate amounts making up that total; and (b) to refer to the rate of interest to be charged on the separate amounts making up the amount payable in general terms as interest at the rate prescribed by regulation applicable from time to time on amounts payable to the Receiver General for Canada, without indicating the specific rates of interest to be charged on each of the separate amounts or to be charged for any period. Garnishment 113 (1) If the Minister has knowledge or suspects that a person is, or will be within one year, liable to make a payment to another person that is liable to pay an amount under this Act (in this section referred to as a “debtor”), the Minister may, by notice in writing, require the person to pay without delay, if the money is immediately payable, and in any other case, as and when the money becomes payable, the money otherwise payable to the debtor in whole or in part to the Receiver General for Canada on account of the debtor’s liability under this Act. Garnishment of loans or advances (2) Without limiting the generality of subsection (1), if the Minister has knowledge or suspects that within 90 days (a) a bank, credit union, trust company or other similar person (in this section referred to as an “institution”) will loan or advance money to, or make a payment on behalf of, or make a payment in respect of a negotiable instrument issued by, a debtor that is indebted to the institution and that has granted security in respect of the indebtedness, or (b) a person, other than an institution, will loan or advance money to, or make a payment on behalf of, a debtor who the Minister knows or suspects (i) is employed by, or is engaged in providing services or property to, that person or was or will be, within 90 days, so employed or engaged, or (ii) if that person is a corporation, is not dealing at arm’s length with that person, the Minister may, by notice in writing, require the institution or person, as the case may be, to pay in whole or in part to the Receiver General for Canada on account of the debtor’s liability under this Act the money that would otherwise be so loaned, advanced or paid. Effect of receipt (3) A receipt issued by the Minister for money paid as required under this section is a good and sufficient discharge of the original liability to the extent of the payment. Effect of requirement (4) If the Minister has, under this section, required a person to pay to the Receiver General for Canada on account of a debtor’s liability under this Act money otherwise payable by the person to the debtor as interest, rent, remuneration, a dividend, an annuity or another periodic payment, the requirement applies to all such payments to be made by the person to the debtor until the liability under this Act is satisfied and the requirement operates to require payments to the Receiver General for Canada out of each such payment of any amount that is specified by the Minister in a notice in writing. Failure to comply (5) A person that fails to comply with a requirement under subsection (1) or (4) is liable to pay to His Majesty in right of Canada an amount equal to the amount that the person was required under that subsection to pay to the Receiver General for Canada. Other failures to comply (6) An institution or person that fails to comply with a requirement under subsection (2) with respect to money to be loaned, advanced or paid is liable to pay to His Majesty in right of Canada an amount equal to the lesser of (a) the total of money so loaned, advanced or paid, and (b) the amount that the institution or person was required under that subsection to pay to the Receiver General for Canada. Assessment (7) The Minister may assess any person for any amount payable under this section by the person to the Receiver General for Canada and, if the Minister sends a notice of assessment, sections 55 and 67 to 82 apply with any modifications that the circumstances require. Time limit (8) An assessment of an amount payable under this section by a person to the Receiver General for Canada is not to be made more than four years after the person receives the notice from the Minister requiring the payment. Effect of payment as required (9) If an amount that would otherwise have been advanced, loaned or paid to or on behalf of a debtor is paid by a person to the Receiver General for Canada in accordance with a notice from the Minister issued under this section, or with an assessment under subsection (7), the person is deemed for all purposes to have advanced, loaned or paid the amount to or on behalf of the debtor. Recovery by deduction or set-off 114 If a person is indebted to His Majesty in right of Canada under this Act, the Minister may require the retention by way of deduction or set-off of any amount that the Minister may specify out of any amount that may be or become payable to that person by His Majesty in right of Canada. Acquisition of debtor’s property 115 For the purpose of collecting debts owed by a person to His Majesty in right of Canada under this Act, the Minister may purchase or otherwise acquire any interest in, or for civil law any right in, the person’s property that the Minister is given a right to acquire in legal proceedings or under a court order or that is offered for sale or redemption and may dispose of any interest or right so acquired in any manner that the Minister considers reasonable. Money seized from debtor 116 (1) If the Minister has knowledge or suspects that a person is holding money that was seized by a police officer, in the course of administering or enforcing the criminal law of Canada, from another person that is liable to pay any amount under this Act (in this section referred to as the “debtor”) and that is restorable to the debtor, the Minister may in writing require the person to turn over the money otherwise restorable to the debtor, in whole or in part, to the Receiver General for Canada on account of the debtor’s liability under this Act. Receipt of Minister (2) A receipt issued by the Minister for money turned over as required under this section is a good and sufficient discharge of the requirement to restore the money to the debtor to the extent of the amount so turned over. Seizure if failure to pay 117 (1) If a person fails to pay an amount as required under this Act, the Minister may in writing give 30 days notice to the person, addressed to their latest known address, of the Minister’s intention to direct that the person’s goods and chattels, or moveable property, be seized and disposed of. If the person fails to make the payment before the expiry of the 30 days, the Minister may issue a certificate of the failure and direct that the person’s goods and chattels, or movable property, be seized. Disposition (2) Property that has been seized under subsection (1) must be kept for 10 days at the expense and risk of the owner. If the owner does not pay the amount due together with all expenses within the 10 days, the Minister may dispose of the property in a manner that the Minister considers appropriate in the circumstances. Proceeds of disposition (3) Any surplus resulting from a disposition, after deduction of the amount owing and all expenses, must be paid or returned to the owner of the property seized. Exemptions from seizure (4) Goods and chattels, or moveable property, of any person in default that would be exempt from seizure under a writ of execution issued by a superior court of the province in which the seizure is made is exempt from seizure under this section. Person leaving Canada 118 (1) If the Minister suspects that a person has left or is about to leave Canada, the Minister may, before the day otherwise fixed for payment, by notice to the person served personally or sent by confirmed delivery service addressed to their latest known address, demand payment of any amount for which the person is liable under this Act or would be so liable if the time for payment had arrived, and the amount must be paid without delay despite any other provision of this Act. Seizure (2) If a person fails to pay an amount required under subsection (1), the Minister may direct that goods and chattels, or movable property, of the person be seized, and subsections 117 (2) to (4) apply, with any modifications that the circumstances require. Authorization to proceed without delay 119 (1) Despite section 110 , if, on ex parte application by the Minister, a judge is satisfied that there are reasonable grounds to believe that the collection of all or any part of an amount assessed in respect of a person would be jeopardized by a delay in its collection, the judge must, on any terms that the judge considers reasonable in the circumstances, authorize the Minister to, without delay, take any of the actions referred to in sections 112 to 117 in respect of that amount. Notice of assessment not sent (2) An authorization under subsection (1) in respect of an amount assessed in respect of a person may be granted by a judge even if a notice of assessment in respect of that amount has not been sent to the person at or before the time the application is made if the judge is satisfied that the receipt of the notice of assessment by the person would likely further jeopardize the collection of the amount. For the purposes of sections 109 , 112 , 113 , 114 , 116 and 117 , the amount in respect of which the authorization is granted is deemed to be an amount payable under this Act. Affidavits (3) Statements contained in an affidavit of a person filed in the context of an application under this section may be based on belief, in which case the affidavit must include the grounds for that belief. Service of authorization and notice of assessment (4) An authorization granted under this section in respect of a person must be served by the Minister on the person within 72 hours after it is granted, unless the judge orders the authorization to be served at some other time specified in the authorization, and, if a notice of assessment has not been sent to the person at or before the time of the application, a notice of assessment for the assessed period must be served on the person together with the authorization. How service effected (5) For the purposes of subsection (4), service on a person must be effected by (a) personal service on the person; or (b) service in accordance with the directions, if any, of a judge. Application to judge for direction (6) If service on a person cannot reasonably be effected as and when required under this section, the Minister may, as soon as practicable, apply to a judge for further direction. Review of authorization (7) If a judge of a court has granted an authorization under this section in respect of a person, the person may, on six clear days notice to the Deputy Attorney General of Canada, apply to a judge of the court to review the authorization. Limitation period for review application (8) An application under subsection (7) to review an authorization must be made (a) within 30 days after the day on which the authorization was served on the person in accordance with this section; or (b) within any further time that a judge may allow, on being satisfied that the application was made as soon as practicable. Hearing in camera (9) An application under subsection (7) may, on the application of the person, be heard in camera , if the person establishes to the satisfaction of the judge that the circumstances of the case justify in camera proceedings. Disposition of application (10) On an application under subsection (7), the judge must determine the question summarily and may confirm, vary or set aside the authorization and make any other order that the judge considers appropriate. Directions (11) If any question arises as to the course to be followed in connection with anything done or being done under this section and there is no relevant direction in this section, a judge may give any direction with regard to the course to be followed that the judge considers appropriate. No appeal from review order (12) No appeal lies from an order of a judge made under subsection (10). DIVISION Q Evidence and Procedure Service 120 (1) If the Minister is authorized or required to serve, issue or send a notice or other document on or to a person that (a) is a partnership, the notice or document may be addressed to the name of the partnership; (b) is a union, the notice or document may be addressed to the name of the union; (c) is a society, club, association, organization or other body, the notice or document may be addressed to the name of the body; and (d) carries on business under a name or style other than the name of the person, the notice or document may be addressed to the name or style under which the person carries on business. Personal service (2) If the Minister is authorized or required to serve, issue or send a notice or other document on or to a person that carries on a business, the notice or document is deemed to have been validly served, issued or sent if it is (a) if the person is a partnership, served personally on one of the partners or left with an adult person employed at the place of business of the partnership; or (b) left with an adult person employed at the place of business of the person. Timing of receipt 121 (1) For the purposes of this Act and subject to subsection (2), anything sent by confirmed delivery service or first class mail is deemed to have been received by the person to which it was sent on the day it was mailed or sent. Timing of payment (2) A person that is required under this Act to pay an amount is deemed not to have paid it until it is received by the Receiver General for Canada. Proof of sending or service by mail 122 (1) If, under this Act, provision is made for sending by confirmed delivery service a request for information, a notice or a demand, then an affidavit of an official of the Agency, sworn before a commissioner or other person authorized to take affidavits, is evidence of the sending and of the request, notice or demand if the affidavit sets out that (a) the official has knowledge of the facts in the particular case; (b) the request, notice or demand was sent by confirmed delivery service on a specified day to a specified person and address; and (c) the official identifies as exhibits attached to the affidavit a true copy of the request, notice or demand and (i) if the request, notice or demand was sent by registered or certified mail, the post office certificate of registration of the letter or a true copy of the relevant portion of the certificate, or (ii) in any other case, the record that the document has been sent or a true copy of the relevant portion of the record. Proof of personal service (2) If, under this Act, provision is made for personal service of a request for information, a notice or a demand, then an affidavit of an official of the Agency, sworn before a commissioner or other person authorized to take affidavits, is evidence of the personal service and of the request, notice or demand if the affidavit sets out that (a) the official has knowledge of the facts in the particular case; (b) the request, notice or demand was served personally on a named day on the person to which it was directed; and (c) the official identifies as an exhibit attached to the affidavit a true copy of the request, notice or demand. Proof of electronic delivery (3) If, under this Act, provision is made for sending a notice to a person electronically, then an affidavit of an official of the Agency, sworn before a commissioner or other person authorized to take affidavits, is evidence of the sending and of the notice if the affidavit sets out that (a) the official has knowledge of the facts in the particular case; (b) the notice was sent electronically to the person on a named day; and (c) the official identifies as exhibits attached to the affidavit copies of (i) an electronic message confirming that the notice has been sent to the person, and (ii) the notice. Proof of failure to comply (4) If, under this Act, a person is required to file a return or make an application, a statement, an answer or a certificate, then an affidavit of an official of the Agency, sworn before a commissioner or other person authorized to take affidavits, setting out that the official has charge of the appropriate records and that, after a careful examination of the records, the official has been unable to find in a given case that the return, application, statement, answer or certificate has been filed or made by that person is evidence that in that case the person did not file the return or make the application, statement, answer or certificate. Proof of time of compliance (5) If, under this Act, a person is required to file a return or make an application, a statement, an answer or a certificate, then an affidavit of an official of the Agency, sworn before a commissioner or other person authorized to take affidavits, setting out that the official has charge of the appropriate records and that, after a careful examination of the records, the official has found that the return, application, statement, answer or certificate was filed or made on a particular day is evidence that it was filed or made on that day. Proof of documents (6) An affidavit of an official of the Agency, sworn before a commissioner or other person authorized to take affidavits, setting out that the official has charge of the appropriate records and that a document attached to the affidavit is a document or true copy of a document, or a printout of an electronic document, made by or on behalf of the Minister or a person exercising the powers of the Minister or by or on behalf of a person, is evidence of the nature and contents of the document. Proof of no appeal (7) An affidavit of an official of the Agency, sworn before a commissioner or other person authorized to take affidavits, setting out that the official has charge of the appropriate records and has knowledge of the practice of the Agency, that an examination of the records shows that a notice of assessment was mailed or otherwise sent to a person on a particular day under this Act, and that, after a careful examination of the records, the official has been unable to find that a notice of objection to or of appeal from the assessment was received within the time allowed is evidence of the statements contained in the affidavit. Presumption (8) If evidence is offered under this section by an affidavit from which it appears that the person making the affidavit is an official of the Agency, it is not necessary to prove the signature of the person or that the person is such an official, nor is it necessary to prove the signature or official character of the person before whom the affidavit was sworn. Proof of documents (9) Every document purporting to have been executed under or in the course of the administration or enforcement of this Act over the name in writing of the Minister, the Commissioner or an official authorized to exercise the powers or perform the duties of the Minister under this Act is deemed to be a document signed, made and issued by the Minister, the Commissioner or the official, unless it has been called into question by the Minister or a person acting for the Minister or for His Majesty in right of Canada. Mailing or sending date (10) For the purposes of this Act, if a notice or demand that the Minister is required or authorized under this Act to send to a person is mailed, or sent electronically, to the person, the day of mailing or sending, as the case may be, is presumed to be the date of the notice or demand. Date electronic notice sent (11) For the purposes of this Act, if a notice or other communication in respect of a person, other than a notice or other communication that refers to the business number of the person, is made available in electronic format such that it can be read or perceived by a person or a computer system or other similar device, the notice or other communication is presumed to be sent to and received by the person on the day on which an electronic message is sent, to the electronic address most recently provided before that day by the person to the Minister for the purposes of this subsection, informing the person that a notice or other communication requiring the person’s immediate attention is available in the person’s secure electronic account. A notice or other communication is considered to be made available if it is posted by the Minister in the person’s secure electronic account and the person has authorized that notices or other communications may be made available in this manner and has not before that day revoked that authorization in a manner specified by the Minister. Date electronic notice sent — business account (12) For the purposes of this Act, a notice or other communication in respect of a person that refers to the business number of the person and is made available in electronic format such that it can be read or perceived by a person or computer system or other similar device is presumed to be sent to and received by the person on the day on which it is posted by the Minister in the secure electronic account in respect of the person’s business number, unless the person has requested, at least 30 days before that day, in a manner specified by the Minister, that such notices or other communications be sent by mail. Date of assessment (13) If a notice of assessment has been sent by the Minister as required under this Act, the assessment is deemed to have been made on the day on which the notice of assessment was sent. Proof of return — prosecutions (14) In a prosecution for an offence under this Act, the production of a return, an application, a certificate, a statement or an answer required under this Act, purporting to have been filed, delivered, made or signed by or on behalf of the person charged with the offence is evidence that the return, application, certificate, statement or answer was filed, delivered, made or signed by or on behalf of that person. Proof of return — production of returns, etc. (15) In a proceeding under this Act, the production of a return, an application, a certificate, a statement or an answer required under this Act, purporting to have been filed, delivered, made or signed by or on behalf of a person is evidence that the return, application, certificate, statement or answer was filed, delivered, made or signed by or on behalf of that person. Evidence (16) In a prosecution for an offence under this Act, an affidavit of an official of the Agency, sworn before a commissioner or other person authorized to take affidavits, setting out that the official has charge of the appropriate records and that an examination of the records shows that an amount required under this Act to be paid to the Receiver General for Canada has not been received by the Receiver General for Canada is evidence of the statements contained in the affidavit. PART 7 Regulations Regulations 123 (1) The Governor in Council may make regulations (a) prescribing anything that, by this Act, is to be prescribed, determined or regulated by regulation; (b) requiring any taxpayer to provide its registration number to any class of persons required to make a return containing that registration number; (c) requiring any person to provide any information, including the person’s name and address, to any class of persons required to make a return containing that information; (d) requiring any individual to provide the Minister with the individual’s Social Insurance Number; (e) prescribing the evidence required to establish facts relevant to assessments under this Act; (f) requiring any class of persons to make information returns respecting any class of information required in connection with the administration or enforcement of this Act; (g) distinguishing among any class of persons, property or activities; and (h) generally to carry out the purposes and provisions of this Act. Effect (2) A regulation made under this Act has effect from the day on which it is published in the Canada Gazette or at any later time that may be specified in the regulation, unless it provides otherwise and (a) has a relieving effect only; (b) corrects an ambiguous or deficient enactment that was not in accordance with the objects of this Act or the Digital Services Tax Regulations ; (c) is consequential on an amendment to this Act that is applicable before the day on which the regulation is published in the Canada Gazette ; or (d) gives effect to a budgetary or other public announcement, in which case the regulation is not, unless paragraph (a), (b) or (c) applies, to have effect before the day on which the announcement was made. Positive or negative amount — regulations 124 For greater certainty, (a) in prescribing an amount under subsection 123 (1), the Governor in Council may prescribe a positive or negative amount; and (b) in prescribing a manner of determining an amount under subsection 123 (1), the Governor in Council may prescribe a manner that could result in a positive or negative amount. Incorporation by reference — limitation removed 125 The limitation set out in paragraph 18.1(2)(a) of the Statutory Instruments Act , to the effect that a document must be incorporated as it exists on a particular date, does not apply to any power to make regulations under this Act. Certificates and registrations not statutory instruments 126 For greater certainty, any registration or certificate issued under this Act is not a statutory instrument for the purposes of the Statutory Instruments Act . Coming into force (2) Subsection (1) comes into force on the day that is fixed by order of the Governor in Council, but not earlier than January 1, 2024. In fixing that day, the Governor in Council must consider (a) the intent of the October 8, 2021 Statement on a Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy; and (b) Canada’s preference for a multilateral approach to addressing the tax challenges arising from the digitalization of the economy and the status of international negotiations and implementation in respect of such an approach. Making of Regulations Making 97 (1) The Digital Services Tax Regulations are made as follows: Digital Services Tax Regulations Interpretation Definitions 1 The following definitions apply in these Regulations. Act  means the Digital Services Tax Act . ( Loi ) quarter  means any period of three consecutive months beginning on January 1, April 1, July 1 or October 1. ( trimestre ) Prescribed Rates of Interest Interest to be paid to the Receiver General 2 (1) For the purposes of every provision of the Act that requires interest at a prescribed rate to be paid to the Receiver General for Canada, the prescribed rate in effect during any particular quarter is the total of (a) the rate that is the simple arithmetic mean, expressed as a percentage per year and rounded to the next higher whole percentage if the mean is not a whole percentage, of all amounts each of which is the average equivalent yield, expressed as a percentage per year, of Government of Canada Treasury Bills that mature approximately three months after their date of issue and that are sold at auctions of Government of Canada Treasury Bills during the first month of the quarter preceding the particular quarter, and (b) 4%. Interest to be paid by the Minister (2) For the purposes of every provision of the Act that requires interest at a prescribed rate to be paid or applied on an amount payable by the Minister to a person, the prescribed rate in effect during any particular quarter is the rate determined under paragraph (1)(a) in respect of the particular quarter. Prescribed Thresholds Global revenue threshold 3 For the purposes of the Act, the amount of the “global revenue threshold” is €750,000,000. In-scope revenue threshold 4 For the purposes of the Act, the amount of the “in-scope revenue threshold” is $20,000,000. Registration threshold 5 For the purposes of Part 6 of the Act, the amount of the “registration threshold” is $10,000,000. Prescribed Rate of Tax Rate 6 For the purpose of the description of B in subsection 10(2) of the Act, the rate prescribed in respect of a taxpayer is 3%. Prescribed Deduction Deduction amount 7 For the purpose of Part 4 of the Act, the “deduction amount” is $20,000,000. (2) The Digital Services Tax Regulations , as made by subsection (1), come into force on the same day as subsection 96 (1) of this Act. (3) The Digital Services Tax Regulations , as made by subsection (1), are deemed (a) to have been made under section 123 of the Digital Services Tax Act ; (b) for the purposes of subsection 5(1) of the Statutory Instruments Act , to have been transmitted to the Clerk of the Privy Council for registration; and (c) to have met the publication requirements of subsection 11(1) of the Statutory Instruments Act . Consequential Amendments R.S., c. A- 1 Access to Information Act 98 (1) Schedule II to the Access to Information Act is amended by adding, in alphabetical order, a reference to Digital Services Tax Act Loi sur la taxe sur les services numériques and a corresponding reference to “section 108”. (2) Subsection (1) comes into force on the same day as subsection 96 (1) of this Act. R.S., c. B-3; 1992, c. 27, s. 2 Bankruptcy and Insolvency Act 99 (1) Subsection 149(3) of the Bankruptcy and Insolvency Act is amended by striking out “and” at the end of paragraph (h), by adding “and” at the end of paragraph (i) and by adding the following after paragraph (i): (j) the Digital Services Tax Act . (2) Subsection (1) comes into force on the same day as subsection 96 (1) of this Act. R.S., c. C- 46 Criminal Code 100 (1) Paragraph 462.48(2)(c) of the Criminal Code is replaced by the following: (c) the type of information or book, record, writing, return or other document obtained by or on behalf of the Minister of National Revenue for the purposes of Part IX of the Excise Tax Act , the Income Tax Act , the Excise Act, 2001 , the Underused Housing Tax Act , the Select Luxury Items Tax Act or the Digital Services Tax Act to which access is sought or that is proposed to be examined or communicated; and (2) Subsection (1) comes into force on the same day as subsection 96 (1) of this Act. R.S., c. E- 15 Excise Tax Act 101 (1) Section 77 of the Excise Tax Act is replaced by the following: Restriction on refunds and credits 77 A refund shall not be paid, and a credit shall not be allowed, to a person under this Act until the person has filed with the Minister all returns and other records of which the Minister has knowledge that are required to be filed under the Excise Tax Act , the Income Tax Act , the Air Travellers Security Charge Act , the Excise Act, 2001 , the Underused Housing Tax Act , the Select Luxury Items Tax Act and the Digital Services Tax Act . (2) Subsection (1) comes into force on the same day as subsection 96 (1) of this Act. 102 (1) Subsection 229(2) of the Act is replaced by the following: Restriction (2) A net tax refund for a reporting period of a person shall not be paid to the person under subsection (1) at any time unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Income Tax Act , the Air Travellers Security Charge Act , the Excise Act, 2001 , the Underused Housing Tax Act , the Select Luxury Items Tax Act and the Digital Services Tax Act have been filed with the Minister. (2) Subsection (1) comes into force on the same day as subsection 96 (1) of this Act. 103 (1) Subsection 230(2) of the Act is replaced by the following: Restriction (2) An amount paid on account of net tax for a reporting period of a person shall not be refunded to the person under subsection (1) at any time unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Income Tax Act , the Air Travellers Security Charge Act , the Excise Act, 2001 , the Underused Housing Tax Act , the Select Luxury Items Tax Act and the Digital Services Tax Act have been filed with the Minister. (2) Subsection (1) comes into force on the same day as subsection 96 (1) of this Act. 104 (1) Subparagraph 238.1(2)(c)(iii) of the Act is replaced by the following: (iii) all amounts required under this Act (other than this Part), sections 21 and 33 of the Canada Pension Plan , the Excise Act , the Customs Act , the Income Tax Act , section 82 and Part VII of the Employment Insurance Act , the Customs Tariff , the Excise Act, 2001 , the Underused Housing Tax Act , the Select Luxury Items Tax Act and the Digital Services Tax Act to be remitted or paid before that time by the registrant have been remitted or paid, and (2) Subsection (1) comes into force on the same day as subsection 96 (1) of this Act. 105 (1) Section 263.02 of the Act is replaced by the following: Restriction on rebate 263. 02 A rebate under this Part shall not be paid to a person at any time unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Income Tax Act , the Air Travellers Security Charge Act , the Excise Act, 2001 , the Underused Housing Tax Act , the Select Luxury Items Tax Act and the Digital Services Tax Act have been filed with the Minister. (2) Subsection (1) comes into force on the same day as subsection 96 (1) of this Act. 106 (1) Subsection 296(7) of the Act is replaced by the following: Restriction on refunds (7) An amount under this section shall not be refunded to a person at any time unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Income Tax Act , the Air Travellers Security Charge Act , the Excise Act, 2001 , the Underused Housing Tax Act , the Select Luxury Items Tax Act and the Digital Services Tax Act have been filed with the Minister. (2) Subsection (1) comes into force on the same day as subsection 96 (1) of this Act. R.S., c. E-20; 2001, c. 33, s. 2(F) Export Development Act 107 (1) Paragraph 24.3(2)(c) of the Export Development Act is replaced by the following: (c) to the Minister of National Revenue solely for the purpose of administering or enforcing the Excise Tax Act , the Income Tax Act , the Select Luxury Items Tax Act or the Digital Services Tax Act ; or (2) Subsection (1) comes into force on the same day as subsection 96 (1) of this Act. R.S., c. F- 11 Financial Administration Act 108 (1) Paragraph 155.2(6)(c) of the Financial Administration Act is replaced by the following: (c) an amount owing by a person to Her Majesty in right of Canada, or payable by the Minister of National Revenue to any person, under the Excise Tax Act , the Income Tax Act , the Air Travellers Security Charge Act , the Excise Act, 2001 , the Softwood Lumber Products Export Charge Act, 2006 , the Underused Housing Tax Act , the Select Luxury Items Tax Act or the Digital Services Tax Act . (2) Subsection (1) comes into force on the same day as subsection 96 (1) of this Act. R.S., c. T- 2 Tax Court of Canada Act 109 (1) Subsection 12(1) of the Tax Court of Canada Act is replaced by the following: Jurisdiction 12 (1) The Court has exclusive original jurisdiction to hear and determine references and appeals to the Court on matters arising under the Canada Pension Plan , the Cultural Property Export and Import Act , Part IX of the Excise Tax Act , the Old Age Security Act , the Petroleum and Gas Revenue Tax Act , Part V.1 of the Customs Act , the Income Tax Act , the Employment Insurance Act , the Air Travellers Security Charge Act , the Excise Act, 2001 , the Softwood Lumber Products Export Charge Act, 2006 , the Disability Tax Credit Promoters Restrictions Act , Part 1 of the Greenhouse Gas Pollution Pricing Act , the Underused Housing Tax Act , the Select Luxury Items Tax Act and the Digital Services Tax Act when references or appeals to the Court are provided for in those Acts. (2) Subsections 12(3) and (4) of the Act are replaced by the following: Further jurisdiction (3) The Court has exclusive original jurisdiction to hear and determine questions referred to it under section 310 or 311 of the Excise Tax Act , section 97.58 of the Customs Act , section 173 or 174 of the Income Tax Act , section 51 or 52 of the Air Travellers Security Charge Act , section 204 or 205 of the Excise Act, 2001 , section 62 or 63 of the Softwood Lumber Products Export Charge Act, 2006 , section 121 or 122 of the Greenhouse Gas Pollution Pricing Act , section 45 or 46 of the Underused Housing Tax Act , section 105 or 106 of the Select Luxury Items Tax Act or section 80 or 81 of the Digital Services Tax Act . Extensions of time (4) The Court has exclusive original jurisdiction to hear and determine applications for extensions of time under subsection 28(1) of the Canada Pension Plan , section 33.2 of the Cultural Property Export and Import Act , section 304 or 305 of the Excise Tax Act , section 97.51 or 97.52 of the Customs Act , section 166.2 or 167 of the Income Tax Act , subsection 103(1) of the Employment Insurance Act , section 45 or 47 of the Air Travellers Security Charge Act , section 197 or 199 of the Excise Act, 2001 , section 115 or 117 of the Greenhouse Gas Pollution Pricing Act , section 39 or 41 of the Underused Housing Tax Act , section 99 or 101 of the Select Luxury Items Tax Act or section 74 or 76 of the Digital Services Tax Act . (3) Subsections (1) and (2) come into force on the same day as subsection 96 (1) of this Act. 110 (1) Paragraph 18.29(3)(a) of the Act is amended by striking out “or” at the end of subparagraph (ix), by replacing “and” at the end of subparagraph (x) with “or” and by adding the following after subparagraph (x): (xi) section 74 or 76 of the Digital Services Tax Act ; and (2) Subsection (1) comes into force on the same day as subsection 96 (1) of this Act. 111 (1) Subsection 18.31(2) of the Act is replaced by the following: Determination of a question (2) If it is agreed under section 310 of the Excise Tax Act , section 97.58 of the Customs Act , section 51 of the Air Travellers Security Act , section 204 of the Excise Act, 2001 , section 62 of the Softwood Lumber Products Export Act, 2006 , section 121 of the Greenhouse Gas Pollution Pricing Act , section 45 of the Underused Housing Tax Act , section 105 of the Select Luxury Items Tax Act or section 80 of the Digital Services Tax Act that a question should be determined by the Court, sections 17.1, 17.2 and 17.4 to 17.8 apply, with any modifications that the circumstances require, in respect of the determination of the question. (2) Subsection (1) comes into force on the same day as subsection 96 (1) of this Act. 112 (1) Subsection 18.32(2) of the Act is replaced by the following: Provisions applicable to determination of a question (2) If an application has been made under section 311 of the Excise Tax Act , section 52 of the Air Travellers Security Charge Act , section 205 of the Excise Act, 2001 , section 63 of the Softwood Lumber Products Export Charge Act, 2006 , section 122 of the Greenhouse Gas Pollution Pricing Act , section 46 of the Underused Housing Tax Act , section 106 of the Select Luxury Items Tax Act or section 81 of the Digital Services Tax Act for the determination of a question, the application or determination of the question must, subject to section 18.33, be determined in accordance with sections 17.1, 17.2 and 17.4 to 17.8, with any modifications that the circumstances require. (2) Subsection (1) comes into force on the same day as subsection 96 (1) of this Act. R.S., c. 1 (2nd Supp.) Customs Act 113 (1) The description of B in paragraph 97.29(1)(a) of the Customs Act is replaced by the following: B is the amount, if any, by which the amount assessed the transferee under subsection 325(2) of the Excise Tax Act , subsection 160(2) of the Income Tax Act and subsection 297(3) of the Excise Act, 2001 in respect of the property exceeds the amount paid by the transferor in respect of the amount so assessed, and (2) Subsection (1) comes into force on the same day as subsection 96 (1) of this Act. R.S., c. 1 (5th Supp.) Income Tax Act 114 (1) Paragraph 18(1)(t) of the Income Tax Act is amended by striking out “or” at the end of subparagraph (iv), by adding “or” at the end of subparagraph (v) and by adding the following after subparagraph (v): (vi) as interest under the Digital Services Tax Act ; (2) Subsection (1) comes into force on the same day as subsection 96 (1) of this Act. 115 (1) Subsection 164(2.01) of the Act is replaced by the following: Withholding of refunds (2.01) The Minister shall not, in respect of a taxpayer, refund, repay, apply to other debts or set-off amounts under this Act at any time unless all returns of which the Minister has knowledge and that are required to be filed by the taxpayer at or before that time under this Act, the Excise Tax Act , the Air Travellers Security Charge Act , the Excise Act, 2001 , the Underused Housing Tax Act , the Select Luxury Items Tax Act and the Digital Services Tax Act have been filed with the Minister. (2) Subsection (1) comes into force on the same day as subsection 96 (1) of this Act. 116 (1) The portion of subsection 221.2(2) of the Act before paragraph (a) is replaced by the following: Re-appropriation of amounts (2) If a particular amount was appropriated to an amount (in this section referred to as the “debt”) that is or may become payable by a person under this Act, the Excise Tax Act , the Air Travellers Security Charge Act , the Excise Act, 2001 , the Underused Housing Tax Act , the Select Luxury Items Tax Act or the Digital Services Tax Act , the Minister may, on application by the person, appropriate the particular amount, or a part of it, to another amount that is or may become payable under any of those Acts and, for the purposes of any of those Acts, (2) Subsection (1) comes into force on the same day as subsection 96 (1) of this Act. 1999, c. 17; 2005, c. 38, s. 35 Canada Revenue Agency Act 117 (1) Paragraph (a) of the definition program legislation in section 2 of the Canada Revenue Agency Act is amended by striking out “and” at the end of subparagraph (ix), by replacing “or” at the end of subparagraph (x) with “and” and by adding the following after subparagraph (x): (xi) the Digital Services Tax Act ; or (2) Subsection (1) comes into force on the same day as subsection 96 (1) of this Act. 2002, c. 9, s. 5 Air Travellers Security Charge Act 118 (1) Subsection 40(4) of the Air Travellers Security Charge Act is replaced by the following: Restriction (4) A refund shall not be paid until the person has filed with the Minister all returns and other records of which the Minister has knowledge that are required to be filed under this Act, the Excise Tax Act , the Income Tax Act , the Excise Act, 2001 , the Underused Housing Tax Act , the Select Luxury Items Tax Act and the Digital Services Tax Act . (2) Subsection (1) comes into force on the same day as subsection 96 (1) of this Act. 2002, c. 22 Excise Act, 2001 119 (1) Paragraph 188(6)(a) of the Excise Act, 2001 is replaced by the following: (a) the Minister under this Act, the Excise Act , the Excise Tax Act , the Income Tax Act , the Air Travellers Security Charge Act , the Underused Housing Tax Act , the Select Luxury Items Tax Act and the Digital Services Tax Act ; or (2) Clause 188(7)(b)(ii)(A) of the Act is replaced by the following: (A) the Minister under this Act, the Excise Act , the Excise Tax Act , the Income Tax Act , the Air Travellers Security Charge Act , the Underused Housing Tax Act , the Select Luxury Items Tax Act and the Digital Services Tax Act , or (3) Subsections (1) and (2) come into force on the same day as subsection 96 (1) of this Act. 120 (1) Subsection 189(4) of the Act is replaced by the following: Restriction (4) A refund shall not be paid until the person has filed with the Minister or the Minister of Public Safety and Emergency Preparedness all returns and other records of which the Minister has knowledge and that are required to be filed under this Act, the Excise Act , the Excise Tax Act , the Customs Act , the Income Tax Act , the Air Travellers Security Charge Act , the Underused Housing Tax Act , the Select Luxury Items Tax Act and the Digital Services Tax Act . (2) Subsection (1) comes into force on the same day as subsection 96 (1) of this Act. 121 (1) The description of B in paragraph 297(1)(d) of the Act is replaced by the following: B is the amount, if any, by which the total of all amounts, if any, the transferee was assessed under subsection 325(2) of the Excise Tax Act or subsection 160(2) of the Income Tax Act in respect of the property exceeds the amount paid by the transferor in respect of the amounts so assessed, and (2) Subsection (1) comes into force on the same day as subsection 96 (1) of this Act. 2022, c. 5, s. 10 Underused Housing Tax Act 122 (1) Section 34 of the Underused Housing Tax Act is replaced by the following: Restriction on payment by Minister 34 An amount under section 33 is not to be paid to a person by the Minister at any time, unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Excise Tax Act , the Income Tax Act , the Excise Act, 2001 , the Air Travellers Security Charge Act , Part 1 of the Greenhouse Gas Pollution Pricing Act , the Select Luxury Items Tax Act and the Digital Services Tax Act have been filed with the Minister. (2) Subsection (1) comes into force on the same day as subsection 96 (1) of this Act. 2022, c. 10, s. 135 Select Luxury Items Tax Act 123 (1) Section 45 of the Select Luxury Items Tax Act is replaced by the following: Restriction on rebate 45 A rebate under this Subdivision is not to be paid to a person at any time unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Excise Tax Act , the Income Tax Act , the Air Travellers Security Charge Act , the Excise Act, 2001 , Part 1 of the Greenhouse Gas Pollution Pricing Act , the Underused Housing Tax Act and the Digital Services Tax Act have been filed with the Minister. (2) Subsection (1) comes into force on the same day as subsection 96 (1) of this Act. 124 (1) Section 48 of the Act is replaced by the following: Restriction — bankruptcy 48 If a trustee is appointed under the Bankruptcy and Insolvency Act to act in the administration of the estate or succession of a bankrupt, a rebate under this Division that the bankrupt was entitled to claim before the appointment must not be paid after the appointment unless all returns required to be filed in respect of the bankrupt under this Act, the Excise Tax Act , the Income Tax Act , the Air Travellers Security Charge Act , the Excise Act, 2001 , Part 1 of the Greenhouse Gas Pollution Pricing Act , the Underused Housing Tax Act and the Digital Services Tax Act in respect of periods ending before the appointment have been filed and all amounts required under this Act, the Excise Tax Act , the Income Tax Act , the Air Travellers Security Charge Act , the Excise Act, 2001 , Part 1 of the Greenhouse Gas Pollution Pricing Act , the Underused Housing Tax Act and the Digital Services Tax Act to be paid by the bankrupt in respect of those periods have been paid. (2) Subsection (1) comes into force on the same day as subsection 96 (1) of this Act. 125 (1) The portion of subsection 53(3) of the Act before the formula is replaced by the following: Failure to comply (3) If, at any time, a person referred to in subsection (1) or (2) fails to give or maintain security in an amount satisfactory to the Minister, the Minister may retain as security, out of any amount that may be or may become payable to the person under this Act, the Excise Tax Act , the Excise Act, 2001 , Part 1 of the Greenhouse Gas Pollution Pricing Act , the Underused Housing Tax Act or the Digital Services Tax Act , an amount not exceeding the amount determined by the formula (2) Subsection (1) comes into force on the same day as subsection 96 (1) of this Act. 126 (1) Subsection 57(6) of the Act is replaced by the following: Restriction — rebate of net tax (6) A rebate under subsection (4) is not to be paid to a person at any time unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Excise Tax Act , the Income Tax Act , the Air Travellers Security Charge Act , the Excise Act, 2001 , Part 1 of the Greenhouse Gas Pollution Pricing Act , the Underused Housing Tax Act and the Digital Services Tax Act have been filed with the Minister. (2) Subsection (1) comes into force on the same day as subsection 96 (1) of this Act. 127 (1) Section 94 of the Act is replaced by the following: Restriction on payment by Minister 94 An amount under section 92 or 93 is not to be paid to a person by the Minister at any time, unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Excise Tax Act , the Income Tax Act , the Air Travellers Security Charge Act , the Excise Act, 2001 , Part 1 of the Greenhouse Gas Pollution Pricing Act , the Underused Housing Tax Act and the Digital Services Tax Act have been filed with the Minister. (2) Subsection (1) comes into force on the same day as subsection 96 (1) of this Act. 128 (1) The description of B in paragraph 150(2)(d) of the Act is replaced by the following: B is the amount, if any, by which the amount assessed the transferee under subsection 325(2) of the Excise Tax Act , paragraph 97.44(1)(b) of the Customs Act , subsection 160(2) of the Income Tax Act , subsection 297(3) of the Excise Act, 2001 , subsection 161(3) of the Greenhouse Gas Pollution Pricing Act or subsection 80(3) of the Underused Housing Tax Act in respect of the property exceeds the amount paid by the transferor in respect of the amount so assessed, and (2) Subsection (1) comes into force on the same day as subsection 96 (1) of this Act. PART 3 Amendments to the Excise Tax Act and to Related Legislation R.S., c. E- 15 Excise Tax Act 129 (1) Section 68.19 of the Excise Tax Act is replaced by the following: Payment — use by province 68.19 (1) If tax under Part III has been paid in respect of any goods that His Majesty in right of a province has purchased or imported, an amount equal to the amount of that tax shall, subject to this Part, be paid to His Majesty in right of the province if His Majesty in right of the province has purchased or imported those goods for any purpose other than (a) resale; (b) use by any board, commission, railway, public utility, university, manufactory, company or agency owned, controlled or operated by the government of the province or under the authority of the legislature or the lieutenant governor in council of the province; or (c) use by His Majesty in right of the province, or by any agents or servants of His Majesty in right of the province, in connection with the manufacture or production of goods or use for other commercial or mercantile purposes. Application (1.1) No amount shall be paid under subsection (1) in respect of goods purchased or imported by His Majesty in right of a province unless an application for the payment is made within two years after His Majesty in right of the province purchased or imported those goods. Election (1.2) His Majesty in right of a province and the particular person that is, as the case may require, the importer, transferee, manufacturer, producer, wholesaler, jobber or other dealer in respect of goods that His Majesty in right of the province purchases or imports may jointly elect, in prescribed form containing prescribed information, to have the following rules apply in respect of the purchase or importation: (a) the particular person, and not His Majesty in right of the province, is entitled to apply for a payment under subsection (1) in respect of the purchase or importation; and (b) the amount payable by the Minister under subsection (1) in respect of the purchase or importation shall be paid to the particular person, and not to His Majesty in right of the province. Limitation (1.3) No more than one election under subsection (1.2) may be made by His Majesty in right of a province in respect of a particular purchase or importation of goods. Exception (2) Subsection (1.2) does not apply in respect of goods purchased or imported by His Majesty in right of a province at a time when a reciprocal taxation agreement referred to in section 32 of the Federal-Provincial Fiscal Arrangements Act is in force in respect of the province. Non-application of subsection 68.2(1) (3) For greater certainty, if an application for a payment in respect of goods can be made by any person in accordance with subsection (1), subsection 68.2(1) does not apply in respect of the goods. (2) Subsection (1) applies in respect of any goods purchased or imported after 2021. 130 (1) The definition financial instrument in subsection 123(1) of the Act is amended by adding the following after paragraph (b): (b.1) a right (other than a right as a creditor), whether absolute or contingent, conferred by a corporation that does not have capital divided into shares to receive, either immediately or in the future, an amount that can reasonably be regarded as all or any part of the capital, revenue or income of the corporation, (2) Paragraph (h) of the definition financial instrument in subsection 123(1) of the Act is replaced by the following: (h) a guarantee, an acceptance or an indemnity in respect of anything described in any of paragraphs (a) to (b.1), (d), (e) and (g), or (3) Subsections (1) and (2) are deemed to have come into force on August 10, 2022. 131 (1) Subsection 149(4) of the Act is replaced by the following: Exclusion of interest and dividend (4) In determining a total for a person under paragraph (1)(b) or (c), there shall not be included interest, or any dividend, from (a) if the person is a partnership, a corporation that is controlled by (i) the person, (ii) a corporation that is controlled by the person, (iii) a corporation that is related to a corporation described in subparagraph (ii), or (iv) a combination of persons described in subparagraphs (i) to (iii); or (b) in any other case, a corporation related to the person. (2) Subsection (1) applies to taxation years that begin after August 9, 2022. 132 (1) Paragraph 150(4)(c) of the Act is replaced by the following: (c) the day specified in the revocation of the election, which day is at least 365 days after the day specified in the election. (2) Section 150 of the Act is amended by adding the following after subsection (4): Form of revocation (4.1) A revocation of an election made under subsection (1) by a member of a closely related group and a corporation shall (a) be made jointly in prescribed form containing prescribed information by the member and the corporation; (b) specify the day on which the revocation is to become effective; and (c) be filed with the Minister in prescribed manner on or before (i) the particular day that is the earlier of (A) the day on or before which the member is required to file a return under Division V for the reporting period of the member that includes the day specified in the revocation, and (B) the day on or before which the corporation is required to file a return under Division V for the reporting period of the corporation that includes the day specified in the revocation, or (ii) any day after the particular day that the Minister may allow. (3) Subsections (1) and (2) are deemed to have come into force on August 10, 2022. 133 (1) The definition Canadian partnership in subsection 156(1) of the Act is repealed. (2) Paragraph (b) of the definition qualifying group in subsection 156(1) of the Act is replaced by the following: (b) a group of specified partnerships, or of specified partnerships and corporations, each member of which is closely related, within the meaning of this section, to each other member of the group. ( groupe admissible ) (3) The portion of the definition qualifying member in subsection 156(1) of the Act before paragraph (a) is replaced by the following: qualifying member  of a qualifying group means a registrant that is a corporation resident in Canada or a specified partnership, each member of which is resident in Canada, and that meets the following conditions: (4) The portion of the definition temporary member in subsection 156(1) of the Act before paragraph (a) is replaced by the following: temporary member  of a qualifying group means a particular corporation  (5) Paragraph (f) of the definition temporary member in subsection 156(1) of the Act is replaced by the following: (f) that receives a supply of property that meets the following conditions: (i) the supply is made by another corporation that is a qualifying member of the qualifying group and in contemplation of a distribution made in the course of a reorganization whereby the shares of the particular corporation are to be transferred upon the distribution to one or more corporations (in this definition referred to as the “transferee corporations”), (ii) the supplied property includes property that is neither a financial instrument nor property having a nominal value, and (iii) all or substantially all of the supplied property (other than financial instruments and property having a nominal value) (A) was last manufactured, produced, acquired or imported by the other corporation for consumption, use or supply exclusively in the course of the commercial activities of the other corporation, (B) is not consumed, used or supplied by the particular corporation otherwise than exclusively in the course of its commercial activities, and (C) may reasonably be expected to be consumed, used or supplied by the transferee corporations exclusively in the course of their commercial activities within 12 months after the time the supply is made; (6) Paragraph (h) of the definition temporary member in subsection 156(1) of the Act is replaced by the following: (h) the shares of which are transferred to the transferee corporations upon the distribution referred to in subparagraph (f)(i). ( membre temporaire ) (7) Subsection 156(1) of the Act is amended by adding the following in alphabetical order: specified partnership  means a partnership each member of which is a corporation or a partnership. ( société de personnes déterminée ) (8) The portion of subsection 156(1.1) of the Act before subparagraph (a)(i) is replaced by the following: Closely related persons (1.1) For the purposes of this section, a particular specified partnership and another person that is a specified partnership or a corporation are closely related to each other at any time if, at that time, (a) in the case where the other person is a specified partnership, (9) Clause 156(1.1)(a)(i)(B) of the Act is replaced by the following: (B) a corporation, or a specified partnership, that is a member of a qualifying group of which the particular partnership is a member, or (10) Clause 156(1.1)(a)(ii)(B) of the Act is replaced by the following: (B) holds all or substantially all of the interest in a specified partnership that is a member of a qualifying group of which the other person is a member; and (11) Clause 156(1.1)(b)(i)(B) of the Act is replaced by the following: (B) a corporation, or a specified partnership, that is a member of a qualifying group of which the particular partnership is a member, or (12) Clause 156(1.1)(b)(iii)(B) of the Act is replaced by the following: (B) a corporation, or a specified partnership, that is a member of a qualifying group of which the other person is a member, or (13) Subparagraph 156(1.1)(b)(iv) of the Act is replaced by the following: (iv) all or substantially all of the interest in a specified partnership is held by (A) if the specified partnership is a member of a qualifying group of which the particular partnership is a member, the other person, and (B) if the specified partnership is a member of a qualifying group of which the other person is a member, the particular partnership. (14) Subsection 156(1.2) of the Act is replaced by the following: Persons closely related to the same person (1.2) If, under subsection (1.1), two persons are closely related to the same corporation or specified partnership, the two persons are closely related to each other for the purposes of this section. (15) Paragraph 156(2.1)(c) of the Act is replaced by the following: (c) a supply that is not a supply of property that meets the conditions set out in paragraph (f) of the definition temporary member in subsection (1), if the recipient of the supply is a temporary member. (16) Subsections (1) to (3) and (7) to (14) are deemed to have come into force on August 10, 2022. (17) Subsections (4) to (6) are deemed to have come into force on August 9, 2022. (18) Subsection (15) applies in respect of any supply made on or after August 9, 2022. 134 (1) Paragraph (k) of the definition permitted deduction in section 217 of the Act is replaced by the following: (k) consideration (other than interest referred to in paragraph (g), dividends referred to in paragraph (h) or consideration referred to in paragraph (k.1) or (k.2)) for a specified non-arm’s length supply made to the qualifying taxpayer less the total of all amounts, each of which is a part of the value of the consideration and is loading; (2) The definition permitted deduction in section 217 of the Act is amended by adding the following after paragraph (k.1): (k.2) consideration (other than interest referred to in paragraph (g) or dividends referred to in paragraph (h)) for a supply that is deemed by subsection 150(1) to be a supply of a financial service and that is made to the qualifying taxpayer by another person, if the other person is a qualifying taxpayer throughout each specified year of the other person during which the other person makes an outlay, or incurs an expense, outside Canada for the purpose of making the supply; (3) Subsections (1) and (2) apply to any specified year of a person that ends after November 16, 2005, except that for the purposes of applying the definition permitted deduction in section 217 of the Act, as amended by subsections (1) and (2), in respect of an amount of consideration for a specified non-arm’s length supply that became due, or was paid without having become due, on or before that day, paragraph (k) of that definition is to be read without reference to the words “less the total of all amounts, each of which is a part of the value of the consideration and is loading”. (4) If, in assessing under section 296 of the Act tax payable by a person under Division IV of Part IX of the Act for a particular specified year of the person, an amount was taken into consideration as an external charge or as qualifying consideration for the particular specified year and as a result of the application of the definition permitted deduction in section 217 of the Act, as amended by subsections (1) and (2), the amount or part of the amount is neither qualifying consideration for any specified year of the person nor an external charge for any specified year of the person for which an election under subsection 217.2(1) of the Act is in effect, the person is entitled until the day that is one year after the day on which this Act receives royal assent to request in writing that the Minister of National Revenue make an assessment, reassessment or additional assessment for the purpose of taking into account that the amount or the part of the amount, as the case may be, is neither, if an election under subsection 217.2(1) of the Excise Tax Act is in effect for the particular specified year, an external charge for the particular specified year nor, in any other case, qualifying consideration for the particular specified year and, on receipt of the request, the Minister must with all due dispatch (a) consider the request; and (b) under section 296 of the Act, assess, reassess or make an additional assessment of the tax payable by the person under Division IV of Part IX of the Act for any specified year of the person and of any interest, penalty or other obligation of the person, solely for the purpose of taking into account that the amount or the part of the amount, as the case may be, is neither, if an election under subsection 217.2(1) of the Act is in effect for the particular specified year, an external charge for the particular specified year nor, in any other case, qualifying consideration for the particular specified year. 135 (1) The formula in paragraph 273.2(2)(c) of the Act is replaced by the following: $2,000,000 × A ÷ 365 (2) Subsection (1) applies in respect of fiscal years of a person that end after August 9, 2022. 136 (1) Subsection 298(1) of the Act is amended by adding the following after paragraph (a): (a.01) despite paragraph (a), in the case of an assessment of the net tax of the person for a reporting period of the person that is made solely to take into account an amount of tax payable under section 218.01, more than seven years after the later of the day on or before which the person was required under section 238 to file a return for the period and the day the return was filed; (2) Subsection (1) is deemed to have come into force on August 4, 2023. 137 (1) The portion of the definition practitioner in section 1 of Part II of Schedule V to the Act before paragraph (b) is replaced by the following: practitioner , in respect of a supply of optometric, chiropractic, physiotherapy, chiropodic, podiatric, osteopathic, audiological, speech-language pathology, occupational therapy, psychological, psychotherapy, counselling therapy, midwifery, dietetic, acupuncture or naturopathic services, means a person who (a) practises the profession of optometry, chiropractic, physiotherapy, chiropody, podiatry, osteopathy, audiology, speech-language pathology, occupational therapy, psychology, psychotherapy, counselling therapy, midwifery, dietetics, acupuncture or naturopathy as a naturopathic doctor, as the case may be, (2) Section 7 of Part II of Schedule V to the Act is amended by adding the following after paragraph (j): (j.1) psychotherapy services; (j.2) counselling therapy services; SOR/91-26; SOR/2011-56, s. 4; SOR/2013-71, s. 17 Financial Services and Financial Institutions (GST/HST) Regulations 138 (1) The Financial Services and Financial Institutions (GST/HST) Regulations are amended by adding the following after section 3.1: 3.2 (1) In this section, acquirer , issuer , payment card , payment card network and payment card network operator have the same meanings as in section 3 of the Payment Card Networks Act . (2) The following services are prescribed for the purposes of paragraph (r.6) of the definition financial service in subsection 123(1) of the Act: (a) a service that (i) is supplied by a payment card network operator in its capacity as the acquirer for a transaction made by payment card, and (ii) is supplied to the person that accepted the payment card used for the transaction or to a payment service provider (as defined in section 2 of the Retail Payment Activities Act ) engaged by that person; (b) a service that is rendered to a holder of a payment card and that is supplied by a payment card network operator in its capacity as the issuer of the payment card; (c) a service, in respect of the settlement of a transaction made by payment card, that is supplied (i) by a payment card network operator, in its capacity as the acquirer for the transaction, to the issuer of the payment card, or (ii) by a payment card network operator, in its capacity as the issuer of the payment card, to the acquirer for the transaction; and (d) a service, in respect of the settlement of a transaction made by payment card, that is supplied by a payment card network operator to the acquirer for the transaction and that consists of paying to the acquirer the amount charged to the payment card in respect of the transaction, but only if the issuer of the payment card supplies to the payment card network operator a service, in respect of the settlement of the transaction, of paying to the payment card network operator the amount charged to the payment card in respect of the transaction. (2) Subsection (1) applies to a supply of a service for which (a) any consideration becomes due after March 28, 2023 or is paid after that day without having become due; or (b) all of the consideration became due or was paid before March 29, 2023. 139 Section 4.1 of the Regulations, as made by section 6 of the Regulations Amending Various GST/HST Regulations, No. 11 , is renumbered as section 4.2 and that section — and the heading before that section, as made by section 6 of those Regulations — are repositioned accordingly. SOR/91-36; SOR/2006-162, s. 2 Joint Venture (GST/HST) Regulations 140 (1) Subsection 3(1) of the Joint Venture (GST/HST) Regulations is amended by striking out “and” at the end of paragraph (o), by adding “and” at the end of paragraph (p) and by adding the following after paragraph (p): (q) the operation of a pipeline, rail terminal or truck terminal if the pipeline, rail terminal or truck terminal is used for the transportation of oil, natural gas or related or ancillary products. (2) Subsection (1) is deemed to have come into force on January 1, 1991. SOR/91-45; SOR/2000-180, s. 1; SOR/2014-248, s. 15 Input Tax Credit Information (GST/HST) Regulations 141 (1) The definition intermediary in section 2 of the Input Tax Credit Information (GST/HST) Regulations is replaced by the following: intermediary  of a person, means, in respect of a supply made by the person, a registrant (a) that, acting as agent of the person or under an agreement with the person, causes or facilitates the making of the supply, or (b) that is deemed under subsection 177(1.11) of the Act to have acted as agent of the person in making the supply; ( intermédiaire ) (2) Subsection (1) is deemed to have come into force on April 20, 2021. 142 (1) The portion of paragraph 3(a) of the Regulations before subparagraph (i) is replaced by the following: (a) where the total amount paid or payable shown on the supporting documentation in respect of the supply or, if the supporting documentation is in respect of more than one supply, the supplies, is less than $100, (2) The portion of paragraph 3(b) of the Regulations before subparagraph (i) is replaced by the following: (b) where the total amount paid or payable shown on the supporting documentation in respect of the supply or, if the supporting documentation is in respect of more than one supply, the supplies, is $100 or more and less than $500, (3) The portion of paragraph 3(c) of the Regulations before subparagraph (i) is replaced by the following: (c) where the total amount paid or payable shown on the supporting documentation in respect of the supply or, if the supporting documentation is in respect of more than one supply, the supplies, is $500 or more, (4) Subsections (1) to (3) are deemed to have come into force on April 20, 2021. Coordinating Amendments Bill C-56 143 (1) If Bill C-56, introduced in the 1st session of the 44th Parliament and entitled the Affordable Housing and Groceries Act , receives royal assent, then section 256.2 of the Excise Tax Act is amended by adding the following after subsection (2): Purpose-built rental housing — cooperative housing corporation (2.1) For the purposes of applying subsections (3) and (5) and section 255 in respect of a taxable supply to a person that is a cooperative housing corporation of property that is prescribed for the purposes of subsection (3.1), if the taxable supply and the property meet the conditions described in paragraph (3.1)(a) or (b) and if prescribed conditions are met, the person is deemed not to be a cooperative housing corporation in respect of the taxable supply. (2) If subsection (1) has produced its effects, subsection 256.2(2.1) of the Excise Tax Act , as enacted by subsection (1), is deemed to have come into force on September 14, 2023. Bill C-323 144 (1) Subsections (2) to (4) apply if Bill C-323, introduced in the 1st session of the 44th Parliament and entitled An Act to amend the Excise Tax Act (mental health services) (in this section referred to as the “other Act”), receives royal assent. (2) If section 1 of the other Act comes into force before section 137 of this Act, then (a) subsection 137 (2) of this Act is deemed never to have come into force and is repealed; and (b) paragraph 7(j.2) of Part II of Schedule V to the Excise Tax Act is replaced by the following: (j.2) counselling therapy services; (3) If section 137 of this Act comes into force before section 1 of the other Act, then that section 1 is repealed. (4) If section 1 of the other Act comes into force on the same day as section 137 of this Act, then that section 1 is deemed to have come into force before that section 137 and subsection (2) applies as a consequence. (5) For greater certainty, if this Act receives royal assent, then the other Act is deemed never to have produced its effects. PART 4 Amendments to the Excise Act, 2001 and to Related Legislation 2002, c. 22 Excise Act, 2001 145 (1) Paragraph 14(1)(f) of the Excise Act, 2001 is replaced by the following: (f) a vaping product licence, authorizing the person to (i) manufacture vaping products, or (ii) import packaged vaping products for stamping by the person. (2) Subsection (1) comes into force or is deemed to have come into force on January 1, 2024. (3) For greater certainty, a vaping product licence issued to a person before January 1, 2024 under paragraph 14(1)(f) of the Act, as it read immediately before that day, also authorizes the person under subparagraph 14(1)(f)(ii) of the Act, as enacted by subsection (1), as of that day. 146 (1) Section 158.46 of the Act is amended by adding “and” at the end of paragraph (b) and by replacing paragraphs (c) and (d) with the following: (c) before the end of the second calendar month following the calendar month in which the licensee packages the vaping product, (i) the vaping product is stamped by the licensee to indicate that vaping duty has been paid, and (ii) if the vaping product is to be entered in the duty-paid market of a specified vaping province, the vaping product is stamped by the licensee to indicate that additional vaping duty in respect of the specified vaping province has been paid. (2) Section 158.46 of the Act is renumbered as subsection 158.46(1) and is amended by adding the following: Stamping of imported packaged vaping products (2) A vaping product licensee that imports a packaged vaping product for stamping shall not enter the vaping product into the duty-paid market unless (a) the vaping product is packaged in a package that has printed on it prescribed information; and (b) before the end of the second calendar month following the calendar month in which the vaping product is released under the Customs Act , (i) the vaping product is stamped by the licensee to indicate that vaping duty has been paid, and (ii) if the vaping product is to be entered in the duty-paid market of a specified vaping province, the vaping product is stamped by the licensee to indicate that additional vaping duty in respect of the specified vaping province has been paid. (3) Subsection (1) applies in respect of vaping products manufactured in Canada that are packaged after 2023. (4) Subsection (2) applies in respect of vaping products that are imported into Canada or released , as defined in subsection 2(1) of the Customs Act , after 2023. 147 (1) Subsection 158.47(2) of the Act is amended by adding the following after paragraph (a): (a.1) that is a packaged vaping product imported by a vaping product licensee for stamping by the licensee; (2) Subsection (1) applies in respect of vaping products that are imported into Canada or released , as defined in subsection 2(1) of the Customs Act , after 2023. 148 (1) Section 158.49 of the Act is replaced by the following: Unstamped products to be warehoused 158. 49 If vaping products (other than vaping product drugs) manufactured in Canada are not stamped by a vaping product licensee, the vaping product licensee must immediately enter the vaping products into its excise warehouse. (2) Section 158.49 of the Act, as amended by subsection (1), is replaced by the following: Unstamped products to be warehoused 158.49 (1) If vaping products manufactured in Canada are not stamped by a vaping product licensee before the end of the particular calendar month that is the second calendar month following the calendar month in which the vaping product licensee packages the vaping products, the vaping product licensee must enter the vaping products into its excise warehouse before the end of the particular calendar month. Imported unstamped packaged products to be warehoused (2) If a vaping product licensee imports packaged vaping products for stamping but does not stamp the vaping products before the end of the particular calendar month that is the second calendar month following the calendar month in which the vaping products are released under the Customs Act , the vaping product licensee must enter the vaping products into its excise warehouse before the end of the particular calendar month. Exceptions (3) Subsections (1) and (2) do not apply (a) in respect of vaping product drugs; or (b) in prescribed circumstances. (3) Subsection (1) is deemed to have come into force on October 1, 2022. (4) Subsection (2) applies in respect of vaping products manufactured in Canada that are packaged after 2023 and in respect of vaping products that are imported into Canada or released , as defined in subsection 2(1) of the Customs Act , after 2023. 149 (1) Section 158.5 of the Act is amended by adding the following after subsection (1): Vaping product markings — exports and accredited representatives (1.1) Subject to subsection (4), no person shall remove a container of vaping products that are not stamped from the premises of a vaping product licensee for export or for delivery to an accredited representative unless the container has printed on it, or affixed to it, vaping product markings and other prescribed information. (2) Subsection (1) applies in respect of vaping products manufactured in Canada that are packaged after 2023 and in respect of vaping products that are imported into Canada or released , as defined in subsection 2(1) of the Customs Act , after 2023. 150 (1) Subsection 158.51(3) of the Act is replaced by the following: Exceptions (3) Subsections (1) and (2) do not apply (a) in respect of a packaged vaping product that is imported by a vaping product licensee for stamping by the vaping product licensee; or (b) in prescribed circumstances. (2) Subsection (1) applies in respect of vaping products that are imported into Canada or released , as defined in subsection 2(1) of the Customs Act , after 2023. 151 (1) The Act is amended by adding the following after section 158.51: Imports for stamping — delivery to premises 158. 511 If a vaping product licensee imports a packaged vaping product for stamping by the vaping product licensee, the vaping product licensee shall, immediately after the vaping product is released under the Customs Act , deliver the vaping product to its premises for stamping. (2) Subsection (1) applies in respect of vaping products that are imported into Canada or released , as defined in subsection 2(1) of the Customs Act , after 2023. 152 (1) Paragraphs 158.57(a) and (b) of the Act are replaced by the following: (a) in the case of vaping products manufactured in Canada, by the vaping product licensee that packaged the vaping products and at the time they are stamped; (a.1) in the case of packaged vaping products that are imported by a vaping product licensee for stamping by the vaping product licensee, by the vaping product licensee and at the time they are stamped; and (b) in the case of any other imported vaping products, by the importer, owner or other person that is liable under the Customs Act to pay duty levied under section 20 of the Customs Tariff or that would be liable to pay that duty on the vaping products if they were subject to that duty. (2) Subsection (1) applies in respect of vaping products manufactured in Canada that are packaged after 2023 and in respect of vaping products that are imported into Canada or released , as defined in subsection 2(1) of the Customs Act , after 2023. 153 (1) Paragraphs 158.58(a) and (b) of the Act are replaced by the following: (a) in the case of vaping products manufactured in Canada, by the vaping product licensee that packaged the vaping products and at the time they are stamped; (a.1) in the case of packaged vaping products that are imported by a vaping product licensee for stamping by the vaping product licensee, by the vaping product licensee and at the time they are stamped; and (b) in the case of any other imported vaping products, by the importer, owner or other person that is liable under the Customs Act to pay duty levied under section 20 of the Customs Tariff or that would be liable to pay that duty on the vaping products if they were subject to that duty. (2) Subsection (1) applies in respect of vaping products manufactured in Canada that are packaged after 2023 and in respect of vaping products that are imported into Canada or released , as defined in subsection 2(1) of the Customs Act , after 2023. 154 (1) Section 158.59 of the Act is replaced by the following: Application of Customs Act 158. 59 The duties imposed under paragraphs 158.57(b) and 158.58(b) on imported vaping products shall be paid and collected under the Customs Act , and interest and penalties shall be imposed, calculated, paid and collected under that Act, as if the duties were a duty levied under section 20 of the Customs Tariff , and, for those purposes, the Customs Act applies with any modifications that the circumstances require. (2) Subsection (1) comes into force or is deemed to have come into force on January 1, 2024. 155 (1) Subsections 159.2(1) and (2) of the Act are replaced by the following: Definition of calendar quarter 159.2 (1) In this section, calendar quarter  means a period of three months beginning on the first day of January, April, July or October. Reporting period — calendar quarters (2) On application by a cannabis licensee, the Minister may, in writing, authorize the reporting periods of the cannabis licensee to be calendar quarters, beginning on the first day of a calendar quarter. (2) Subsection 159.2(4) of the Act is repealed. (3) Subsections 159.2(6) and (7) of the Act are replaced by the following: Notice of revocation (6) If the Minister revokes an authorization in respect of a cannabis licensee, the following rules apply: (a) the Minister shall send a notice in writing of the revocation to the cannabis licensee and shall specify in the notice the fiscal month of the cannabis licensee for which the revocation becomes effective; and (b) if the revocation becomes effective before the last day of a calendar quarter, the period beginning on the first day of the calendar quarter and ending immediately before the first day of that fiscal month is deemed to be a reporting period of the cannabis licensee. (4) Subsections (1) to (3) are deemed to have come into force on April 1, 2023. 156 The Act is amended by adding the following after section 233.2: Contravention of section 158.47 233. 3 Every person that is liable to pay a duty imposed under paragraph 158.57(b) on a vaping product is liable to a penalty equal to the amount determined by the following formula if the vaping product is released under the Customs Act for entry into the duty paid market in contravention of section 158.47: (A + B) × 200% where A is the amount determined under Schedule 8 in respect of the vaping product, using the rates of duty applicable at the time the contravention occurred; and B is (a) if the contravention occurred in a specified vaping province, the amount determined for A, and (b) in any other case, 0. 157 The portion of section 234.2 of the Act before the formula is replaced by the following: Contravention — sections 158.35 and 158.43 to 158.45 234. 2 Every person that contravenes section 158.35, 158.43, 158.44 or 158.45 is liable to a penalty equal to the amount determined by the formula 158 The Act is amended by adding the following after section 249: Contravention of section 158.511 249. 1 Every person that contravenes section 158.511 is liable to a penalty equal to the amount determined by the formula (A + B) × 50% where A is the amount determined under Schedule 8 in respect of the vaping products to which the contravention relates, using the rates of duty applicable at the time the contravention occurred; and B is (a) if the contravention occurred in a specified vaping province, the amount determined for A, and (b) in any other case, 0. 159 Schedule 8 to the Act is amended by replacing the references after the heading “SCHEDULE 8” with the following: (Sections 158.57, 158.6, 158.61, 218.2, 233.2, 233.3, 234.2, 237, 238.01 and 249.1) SOR/98- 61 Returning Persons Exemption Regulations 160 Paragraph 3(2)(b) of the Returning Persons Exemption Regulations is replaced by the following: (b) tobacco or vaping products (other than a vaping product drug as defined in section 2 of the Excise Act, 2001 ) imported by a person who has not attained 18 years of age. SOR/2003- 115 Regulations Respecting Excise Licences and Registrations 161 (1) The portion of subsection 5(1) of the English version of the Regulations Respecting Excise Licences and Registrations before paragraph (a) is replaced by the following: 5 (1) For the purposes of paragraph 23(3)(b) of the Act, the amount of security to be provided by an applicant for a spirits licence, a tobacco licence, a cannabis licence or a vaping product licence must be an amount of not less than $5,000 and (2) Subsection 5(1) of the Regulations is amended by striking out “and” at the end of paragraph (a) and by replacing paragraph (b) with the following: (b) in the case of a tobacco licence or a vaping product licence, be sufficient to ensure payment of the amount of duty referred to in paragraph 160(b) of the Act up to a maximum amount of $5 million per licence; and (c) in the case of a cannabis licence, (i) if the licensee is authorized under subsection 159.2(2) of the Act to have reporting periods that are calendar quarters, be sufficient to ensure payment of one-third of the amount of duty referred to in paragraph 160(b) of the Act up to a maximum amount of $5 million per licence, and (ii) in any other case, be sufficient to ensure payment of the amount of duty referred to in paragraph 160(b) of the Act up to a maximum amount of $5 million per licence. (3) Subsections (1) and (2) are deemed to have come into force on April 1, 2023. SOR/2003-288; 2018, c. 12, s. 108; 2022, c. 10, s. 116 Stamping and Marking of Tobacco, Cannabis and Vaping Products Regulations 162 (1) The portion of section 3.6 of the Stamping and Marking of Tobacco, Cannabis and Vaping Products Regulations before paragraph (a) is replaced by the following: 3. 6 For the purposes of paragraphs 158.46(1)(b) and (2)(a) of the Act, the prescribed information is (2) Section 3.6 of the Regulations, as amended by subsection (1), is replaced by the following: 3. 6 For the purposes of paragraphs 158.46(1)(b) and (2)(a) of the Act, the prescribed information is (a) one of the following: (i) the vaping product licensee’s name and address, (ii) the vaping product licensee’s licence number, or (iii) if the vaping product is packaged by the vaping product licensee for another person, the person’s name and the address of their principal place of business; and (b) the volume in millilitres of the vaping substance in liquid form, and the weight in grams of the vaping substance in solid form, contained in each vaping device or immediate container in the package and the number of vaping devices and immediate containers in the package. (3) Subsection (1) comes into force or is deemed to have come into force on January 1, 2024. (4) Subsection (2) comes into force on the day that is six months after the first day of the month following the month in which this Act receives royal assent. 163 (1) Section 3.7 of the Regulations is replaced by the following: 3. 7 For the purposes of paragraph 158.47(1)(a) of the Act, the prescribed information is (a) if the vaping product was imported by a vaping product licensee, the licensee’s name and address or vaping product licence number; (b) if the vaping product was imported by a person other than a vaping product licensee, the person’s name and address; and (c) the volume in millilitres of the vaping substance in liquid form, and the weight in grams of the vaping substance in solid form, contained in each vaping device or immediate container in the package and the number of vaping devices and immediate containers in the package. (2) Subsection (1) comes into force on the day that is six months after the first day of the month following the month in which this Act receives royal assent. 164 (1) The portion of section 3.8 of the Regulations before paragraph (a) is replaced by the following: 3. 8 For the purposes of paragraphs 158.46(1)(b) and (2)(a) and 158.47(1)(a) of the Act, the following information is prescribed for cases of vaping products: (2) Subsection (1) comes into force or is deemed to have come into force on January 1, 2024. 165 (1) Paragraph 4(4)(b) of the Regulations is replaced by the following: (b) a person that has in their possession vaping excise stamps only for the purpose of applying adhesive to the stamps on behalf of the person to which the stamps are issued. (2) Subsection (1) is deemed to have come into force on June 23, 2022. 166 Section 5.1 of the Regulations, as enacted by section 122 of the Budget Implementation Act, 2022, No. 1 , is renumbered as section 5.01 and that section is repositioned immediately after section 5 of the Regulations. 167 (1) The portion of subsection 8(1) of the Regulations before paragraph (a) is replaced by the following: 8 (1) For the purposes of subsections 158.5(1) and (1.1) of the Act, the required vaping product markings are (2) Subsection (1) comes into force or is deemed to have come into force on January 1, 2024. PART 5 Various Measures DIVISION 1 Federal Financial Institutions SUBDIVISION A Information Technology Activities 2018, c. 12 Budget Implementation Act, 2018, No. 1 168 (1) Subsection 310(1) of the Budget Implementation Act, 2018, No. 1 is amended by replacing the portion of the subparagraph 410(1)(c)(ii) that it enacts before clause (A) with the following: (ii) designing, developing, manufacturing, selling and otherwise dealing with information technology, if those activities relate to (2) Subsection 310(5) of the Act is amended by replacing the paragraph 410(3)(c) that it enacts with the following: (c) respecting the circumstances in which a company may engage in the activities referred to in paragraphs (1)(b.1) and (c), including the circumstances in which it may collect, manipulate and transmit information under subparagraph (1)(c)(i). 169 Subsection 312(1) of the French version of the Act is amended by replacing the paragraphs 453(2.2)(b) and (c) that it enacts with the following: b) assortir de conditions l’acquisition par la société, en vertu du paragraphe (2.‍1), du contrôle d’une entité ou l’acquisition ou l’augmentation par cette société, en vertu de ce paragraphe, d’un intérêt de groupe financier dans une telle entité; c) prendre toute mesure d’ordre réglementaire concernant les circonstances dans lesquelles la société peut, en vertu du paragraphe (2.‍1), acquérir le contrôle d’une entité ou acquérir ou augmenter un intérêt de groupe financier dans une telle entité. 170 Section 313 of the French version of the Act is amended by replacing the paragraphs 453.1(a) and (b) that it enacts with the following: a) prendre toute mesure d’ordre réglementaire concernant les circonstances dans lesquelles la société peut acquérir le contrôle d’une entité qui exerce des activités qu’une société est autorisée à exercer dans le cadre des alinéas 410(1)b.1) et c) ou acquérir ou augmenter un intérêt de groupe financier dans une telle entité, notamment dans quelles circonstances une telle acquisition ou augmentation est interdite; b) assortir de conditions l’acquisition par la société du contrôle d’une entité visée à l’alinéa a) ou l’acquisition ou l’augmentation par cette société, en vertu de cet alinéa, d’un intérêt de groupe financier dans une telle entité. 171 (1) Subsection 316(1) of the Act is amended by replacing the portion of the subparagraph 410(1)(c)(ii) that it enacts before clause (A) with the following: (ii) designing, developing, manufacturing, selling and otherwise dealing with information technology, if those activities relate to (2) Subsection 316(5) of the French version of the Act is amended by replacing the paragraph 410(3)(c) that it enacts with the following: c) prendre toute mesure d’ordre réglementaire concernant les circonstances dans lesquelles la banque peut exercer les activités visées aux alinéas (1)b.1) et c), notamment en ce qui a trait à la collecte, la manipulation et la transmission d’information en vertu du sous-alinéa (1)c)(i). 172 Subsection 318(1) of the French version of the Act is amended by replacing the paragraphs 468(2.2)(b) and (c) that it enacts with the following: b) assortir de conditions l’acquisition par la banque, en vertu du paragraphe (2.‍1), du contrôle d’une entité ou l’acquisition ou l’augmentation par cette banque, en vertu de ce paragraphe, d’un intérêt de groupe financier dans une telle entité; c)  prendre toute mesure d’ordre réglementaire concernant les circonstances dans lesquelles la banque peut, en vertu du paragraphe (2.‍1), acquérir le contrôle d’une entité ou acquérir ou augmenter un intérêt de groupe financier dans une telle entité. 173 Section 319 of the French version of the Act is amended by replacing the paragraphs 468.1(a) and (b) that it enacts with the following: a) prendre toute mesure d’ordre réglementaire concernant les circonstances dans lesquelles la banque peut acquérir le contrôle d’une entité qui exerce des activités qu’une banque est autorisée à exercer dans le cadre des alinéas 410(1)b.1) et c) ou acquérir ou augmenter un intérêt de groupe financier dans une telle entité, notamment dans quelles circonstances une telle acquisition ou augmentation est interdite; b) assortir de conditions l’acquisition par la banque du contrôle d’une entité visée à l’alinéa a) ou l’acquisition ou l’augmentation par cette banque, en vertu de cet alinéa, d’un intérêt de groupe financier dans une telle entité. 174 Section 321 of the French version of the Act is amended by replacing the paragraphs 522.08(1.2)(a) and (b) that it enacts with the following: a) assortir de conditions l’acquisition ou la détention par la banque étrangère ou l’entité liée à une banque étrangère du contrôle d’une entité canadienne — ou l’acquisition ou la détention d’un intérêt de groupe financier dans une telle entité — en vertu du paragraphe (1.1); b) prendre toute mesure d’ordre réglementaire concernant les circonstances dans lesquelles la banque étrangère ou l’entité liée à une banque étrangère peut acquérir ou détenir le contrôle d’une entité canadienne — ou acquérir ou détenir un intérêt de groupe financier dans une telle entité — en vertu du paragraphe (1.1). 175 Section 322 of the French version of the Act is amended by replacing the paragraphs 522.081(a) and (b) that it enacts with the following: a) prendre toute mesure d’ordre réglementaire concernant les circonstances dans lesquelles la banque étrangère ou l’entité liée à une banque étrangère peut acquérir ou détenir le contrôle d’une entité canadienne qui exerce des activités qu’une banque est autorisée à exercer dans le cadre des alinéas 410(1)b.1) et c) ou acquérir ou détenir un intérêt de groupe financier dans une telle entité; b) assortir de conditions l’acquisition ou la détention par la banque étrangère ou l’entité liée à une banque étrangère du contrôle d’une entité visée à l’alinéa a) ou l’acquisition ou la détention d’un intérêt de groupe financier dans une telle entité. 176 (1) Subsection 324(1) of the Act is amended by replacing the portion of the subparagraph 539(1)(b.2)(ii) that it enacts before clause (A) with the following: (ii) designing, developing, manufacturing, selling and otherwise dealing with information technology, if those activities relate to (2) Subsection 324(3) of the Act is amended by replacing the paragraph 539(3)(c) that it enacts with the following: (c) respecting the circumstances in which an authorized foreign bank may engage in the activities referred to in paragraphs (1)(b.1) and (b.2), including the circumstances in which it may collect, manipulate and transmit information under subparagraph (1)(b.2)(i). 177 Subsection 326(1) of the French version of the Act is amended by replacing the paragraphs 930(2.2)(a) and (b) that it enacts with the following: a) assortir de conditions l’acquisition par la société de portefeuille bancaire, en vertu du paragraphe (2.‍1), du contrôle d’une entité ou l’acquisition ou l’augmentation par cette société, en vertu de ce paragraphe, d’un intérêt de groupe financier dans une telle entité; b) prendre toute mesure d’ordre réglementaire concernant les circonstances dans lesquelles la société de portefeuille bancaire peut, en vertu du paragraphe (2.‍1), acquérir le contrôle d’une entité ou acquérir ou augmenter un intérêt de groupe financier dans une telle entité. 178 Section 327 of the French version of the Act is amended by replacing the paragraphs 930.1(a) and (b) that it enacts with the following: a) prendre toute mesure d’ordre réglementaire concernant les circonstances dans lesquelles la société de portefeuille bancaire peut acquérir le contrôle d’une entité qui exerce des activités qu’une banque est autorisée à exercer dans le cadre des alinéas 410(1)b.1) et c) ou acquérir ou augmenter un intérêt de groupe financier dans une telle entité, notamment dans quelles circonstances une telle acquisition ou augmentation est interdite; b) assortir de conditions l’acquisition par la société de portefeuille bancaire du contrôle d’une entité visée à l’alinéa a) ou l’acquisition ou l’augmentation par cette société d’un intérêt de groupe financier dans une telle entité. 179 (1) Subsection 329(1) of the Act is amended by replacing the portion of the subparagraph 441(1)(d)(ii) that it enacts before clause (A) with the following: (ii) designing, developing, manufacturing, selling and otherwise dealing with information technology, if those activities relate to (2) Subsection 329(5) of the French version of the Act is amended by replacing the paragraph 441(4)(c) that it enacts with the following: c) prendre toute mesure d’ordre réglementaire concernant les circonstances dans lesquelles la société peut exercer les activités visées aux alinéas (1)c.1) et d), notamment en ce qui a trait à la collecte, la manipulation et la transmission d’information en vertu du sous-alinéa (1)d)(i). 180 (1) Subsection 331(1) of the French version of the Act is amended by replacing the paragraphs 495(2.2)(b) and (c) that it enacts with the following: b) assortir de conditions l’acquisition par la société d’assurance-vie, en vertu du paragraphe (2.‍1), du contrôle d’une entité ou l’acquisition ou l’augmentation par cette société, en vertu de ce paragraphe, d’un intérêt de groupe financier dans une telle entité; c) prendre toute mesure d’ordre réglementaire concernant les circonstances dans lesquelles la société d’assurance-vie peut, en vertu du paragraphe (2.‍1), acquérir le contrôle d’une entité ou acquérir ou augmenter un intérêt de groupe financier dans une telle entité. (2) Subsection 331(3) of the French version of the Act is amended by replacing the paragraphs 495(4.2)(a) and (b) that it enacts with the following: a) assortir de conditions l’acquisition par la société d’assurances multirisques ou la société d’assurance maritime, en vertu du paragraphe (4.1), d’une entité ou l’acquisition ou l’augmentation par l’une de ces sociétés, en vertu de ce paragraphe, d’un intérêt de groupe financier dans une telle entité; b) prendre toute mesure d’ordre réglementaire concernant les circonstances dans lesquelles la société d’assurances multirisques ou la société d’assurance maritime peut, en vertu du paragraphe (4.1), acquérir le contrôle d’une entité ou acquérir ou augmenter un intérêt de groupe financier dans une telle entité. 181 Section 332 of the French version of the Act is amended by replacing the paragraphs 495.1(a) and (b) that it enacts with the following: a) prendre toute mesure d’ordre réglementaire concernant les circonstances dans lesquelles la société peut acquérir le contrôle d’une entité qui exerce des activités qu’une société est autorisée à exercer dans le cadre des alinéas 441(1)c.1) et d) ou acquérir ou augmenter un intérêt de groupe financier dans une telle entité, notamment dans quelles circonstances une telle acquisition ou augmentation est interdite; b) assortir de conditions l’acquisition par la société du contrôle d’une entité visée à l’alinéa a) ou l’acquisition ou l’augmentation par cette société, en vertu de cet alinéa, d’un intérêt de groupe financier dans une telle entité. 182 Subsection 335(1) of the French version of the Act is amended by replacing the paragraphs 554(2.2)(b) and (c) that it enacts with the following: b) assortir de conditions l’acquisition par la société de secours, en vertu du paragraphe (2.1), du contrôle d’une entité ou l’acquisition ou l’augmentation par cette société, en vertu de ce paragraphe, d’un intérêt de groupe financier dans une telle entité; c) prendre toute mesure d’ordre réglementaire concernant les circonstances dans lesquelles la société de secours peut, en vertu du paragraphe (2.1), acquérir le contrôle d’une entité ou acquérir ou augmenter un intérêt de groupe financier dans une telle entité. 183 Section 336 of the French version of the Act is amended by replacing the paragraphs 554.1(a) and (b) that it enacts with the following: a) prendre toute mesure d’ordre réglementaire concernant les circonstances dans lesquelles la société de secours peut acquérir le contrôle d’une entité qui exerce des activités qu’une société d’assurances multirisques est autorisée à exercer dans le cadre des alinéas 441(1)c.1) et d) ou acquérir ou augmenter un intérêt de groupe financier dans une telle entité, notamment dans quelles circonstances une telle acquisition ou augmentation est interdite; b) assortir de conditions l’acquisition par la société de secours du contrôle d’une entité visée à l’alinéa a) ou l’acquisition ou l’augmentation par cette société, en vertu de cet alinéa, d’un intérêt de groupe financier dans une telle entité. 184 Subsection 337(1) of the French version of the Act is amended by replacing the paragraphs 971(2.2)(b) and (c) that it enacts with the following: b) assortir de conditions l’acquisition par la société de portefeuille d’assurances, en vertu du paragraphe (2.1), du contrôle d’une entité ou l’acquisition ou l’augmentation par cette société, en vertu de ce paragraphe, d’un intérêt de groupe financier dans une telle entité; c) prendre toute mesure d’ordre réglementaire concernant les circonstances dans lesquelles la société de portefeuille d’assurances peut, en vertu du paragraphe (2.1), acquérir le contrôle d’une entité ou acquérir ou augmenter un intérêt de groupe financier dans une telle entité. 185 Section 338 of the French version of the Act is amended by replacing the paragraphs 971.1(a) and (b) that it enacts with the following: a) prendre toute mesure d’ordre réglementaire concernant les circonstances dans lesquelles la société de portefeuille d’assurances peut acquérir le contrôle d’une entité qui exerce des activités qu’une société est autorisée à exercer dans le cadre des alinéas 441(1)c.1) et d) ou acquérir ou augmenter un intérêt de groupe financier dans une telle entité; b) assortir de conditions l’acquisition par une société de portefeuille d’assurances du contrôle d’une entité visée à l’alinéa a) ou l’acquisition ou l’augmentation par cette société d’un intérêt de groupe financier dans une telle entité. SUBDIVISION B Virtual Meetings 1991, c. 45 Trust and Loan Companies Act 186 (1) Subsection 139(1) of the French version of the Trust and Loan Companies Act is replaced by the following: Lieu des assemblées 139 (1) Les assemblées des actionnaires se tiennent au Canada, au lieu que prévoient les règlements administratifs ou, à défaut, que choisissent les administrateurs. (2) Subsection 139(2) of the Act is replaced by the following: Participation by electronic means (2) Unless the by-laws provide otherwise and in accordance with any regulations, any person who is entitled to attend a meeting of shareholders may participate in the meeting by means of a telephonic, electronic or other communication facility that permits all participants to communicate adequately with each other during the meeting if the company makes one available. A person who is participating in a meeting by one of those means is deemed for the purposes of this Act to be present at the meeting. Meeting held by electronic means (2.1) If the directors or shareholders of a company call a meeting of shareholders under this Act, those directors or shareholders may determine that the meeting shall be held, in accordance with any regulations, entirely by means of a telephonic, electronic or other communication facility that permits all participants to communicate adequately with each other during the meeting, if the by-laws so provide. 187 Subsection 154(4) of the Act is replaced by the following: Voting while participating electronically (4) Unless the by-laws provide otherwise and in accordance with any regulations, any person who is participating in a meeting of shareholders under subsection 139(2) or (2.1) and entitled to vote at that meeting may vote by means of the telephonic, electronic or other communication facility that the company has made available for that purpose. 1991, c. 46 Bank Act 188 (1) Subsection 136(1) of the French version of the Bank Act is replaced by the following: Lieu des assemblées 136 (1) Les assemblées des actionnaires ou des membres se tiennent au Canada, au lieu que prévoient les règlements administratifs ou, à défaut, que choisissent les administrateurs. (2) Subsection 136(2) of the Act is replaced by the following: Participation by electronic means (2) Unless the by-laws provide otherwise and in accordance with any regulations, any person who is entitled to attend a meeting of shareholders or members may participate in the meeting by means of a telephonic, electronic or other communication facility that permits all participants to communicate adequately with each other during the meeting if the bank makes one available. A person who is participating in a meeting by one of those means is deemed for the purposes of this Act to be present at the meeting. Meeting held by electronic means (2.1) If the directors, shareholders or members of a bank call a meeting of shareholders or members under this Act, those directors, shareholders or members may determine that the meeting shall be held, in accordance with any regulations, entirely by means of a telephonic, electronic or other communication facility that permits all participants to communicate adequately with each other during the meeting, if the by-laws so provide. 189 Subsection 151(4) of the Act is replaced by the following: Voting while participating electronically (4) Unless the by-laws provide otherwise and in accordance with any regulations, any person who is participating in a meeting under subsection 136(2) or (2.1) and entitled to vote at that meeting may vote by means of the telephonic, electronic or other communication facility that the bank has made available for that purpose. 190 (1) Subsection 725(1) of the French version of the Act is replaced by the following: Lieu des assemblées 725 (1) Les assemblées des actionnaires se tiennent au Canada, au lieu que prévoient les règlements administratifs ou, à défaut, que choisissent les administrateurs. (2) Subsection 725(2) of the Act is replaced by the following: Participation by electronic means (2) Unless the by-laws provide otherwise and in accordance with any regulations, any person who is entitled to attend a meeting of shareholders may participate in the meeting by means of a telephonic, electronic or other communication facility that permits all participants to communicate adequately with each other during the meeting if the bank holding company makes one available. A person who is participating in a meeting by one of those means is deemed for the purposes of this Part to be present at the meeting. Meeting held by electronic means (2.1) If the directors or shareholders of a bank holding company call a meeting of shareholders under this Act, those directors or shareholders may determine that the meeting shall be held, in accordance with any regulations, entirely by means of a telephonic, electronic or other communication facility that permits all participants to communicate adequately with each other during the meeting, if the by-laws so provide. 191 Subsection 740(4) of the Act is replaced by the following: Voting while participating electronically (4) Unless the by-laws provide otherwise and in accordance with any regulations, any person who is participating in a meeting of shareholders under subsection 725(2) or (2.1) and entitled to vote at that meeting may vote by means of the telephonic, electronic or other communication facility that the bank holding company has made available for that purpose. 1991, c. 47 Insurance Companies Act 192 (1) Subsection 140(1) of the French version of the Insurance Companies Act is replaced by the following: Lieu des assemblées 140 (1) Les assemblées des actionnaires ou des souscripteurs se tiennent au Canada, au lieu que prévoient les règlements administratifs ou, à défaut, que choisissent les administrateurs. (2) Subsection 140(2) of the Act is replaced by the following: Participation by electronic means (2) Unless the by-laws provide otherwise and in accordance with any regulations, any person who is entitled to attend a meeting of shareholders or policyholders may participate in the meeting by means of a telephonic, electronic or other communication facility that permits all participants to communicate adequately with each other during the meeting if the company makes one available. A person who is participating in a meeting by one of those means is deemed for the purposes of this Act to be present at the meeting. Meeting held by electronic means (2.1) If the directors, shareholders or policyholders of a company call a meeting of shareholders or policyholders under this Act, those directors, shareholders or policyholders may determine that the meeting shall be held, in accordance with any regulations, entirely by means of a telephonic, electronic or other communication facility that permits all participants to communicate adequately with each other during the meeting, if the by-laws so provide. 193 Subsection 157(4) of the Act is replaced by the following: Voting while participating electronically (4) Unless the by-laws provide otherwise and in accordance with any regulations, any person who is participating in a meeting of shareholders or policyholders under subsection 140(2) or (2.1) and entitled to vote at that meeting may vote by means of the telephonic, electronic or other communication facility that the company has made available for that purpose. 194 (1) Subsection 764(1) of the French version of the Act is replaced by the following: Lieu des assemblées 764 (1) Les assemblées des actionnaires se tiennent au Canada, au lieu que prévoient les règlements administratifs ou, à défaut, que choisissent les administrateurs. (2) Subsection 764(2) of the Act is replaced by the following: Participation by electronic means (2) Unless the by-laws provide otherwise and in accordance with any regulations, any person who is entitled to attend a meeting of shareholders may participate in the meeting by means of a telephonic, electronic or other communication facility that permits all participants to communicate adequately with each other during the meeting if the insurance holding company makes one available. A person who is participating in a meeting by one of those means is deemed for the purposes of this Part to be present at the meeting. Meeting held by electronic means (2.1) If the directors or shareholders of an insurance holding company call a meeting of shareholders under this Act, those directors or shareholders may determine that the meeting shall be held, in accordance with any regulations, entirely by means of a telephonic, electronic or other communication facility that permits all participants to communicate adequately with each other during the meeting, if the by-laws so provide. 195 Subsection 778(4) of the Act is replaced by the following: Voting while participating electronically (4) Unless the by-laws provide otherwise and in accordance with any regulations, any person who is participating in a meeting of shareholders under subsection 764(2) or (2.1) and entitled to vote at that meeting may vote by means of the telephonic, electronic or other communication facility that the insurance holding company has made available for that purpose. Coming into Force Order in council 196 This Subdivision comes into force on a day to be fixed by order of the Governor in Council. DIVISION 2 Leave Related to Pregnancy Loss and Bereavement Leave R.S., c. L- 2 Canada Labour Code 197 Section 187.1 of the Canada Labour Code is amended by adding the following after subsection (2): Application of section 210.2 (2.1) If an employee interrupts a vacation to take leave under Division VIII and resumes the vacation immediately at the end of that leave, section 210.2 applies to them as if they did not resume the vacation before returning to work. 198 The Act is amended by adding the following after section 206.5: Leave Related to Pregnancy Loss Definitions 206.51 (1) The following definitions apply in this section. common-law partner , in relation to an individual, means a person who is cohabiting with the individual in a conjugal relationship, having so cohabited for a period of at least one year. ( conjoint de fait ) stillbirth  means the complete expulsion or extraction of a foetus from a person on or after the 20th week of pregnancy or after the foetus has attained at least 500 g, without any breathing, beating of the heart, pulsation of the umbilical cord or movement of voluntary muscle from the foetus after the expulsion or extraction. ( mortinaissance ) Eligible employees (2) An employee is eligible for the leave of absence referred to in subsection (3) if (a) their pregnancy does not result in a live birth; (b) the pregnancy of their spouse or common-law partner does not result in a live birth; or (c) they intended to be the legal parent of the child that would have been born had another person’s pregnancy resulted in a live birth. Entitlement to leave (3) An employee who is eligible for a leave of absence under subsection (2) is entitled to and shall be granted a leave of absence of up to (a) eight weeks, if the pregnancy resulted in a stillbirth; or (b) three days, in any other case. Pregnancy with multiples (4) For the purposes of this section, the following apply in respect of a pregnancy of more than one foetus: (a) an employee may take only one leave of absence under subsection (3) in respect of the pregnancy; and (b) a pregnancy that does not result in a live birth includes a pregnancy that has ended without a live birth in respect of at least one foetus. Period when leave may be taken (5) The period during which the employee may take a leave of absence begins on the day on which the pregnancy does not result in a live birth and ends 26 weeks after that day. Leave with pay (6) If the employee has completed three consecutive months of continuous employment with the employer, the employee is entitled to the first three days of leave with pay at their regular rate of wages for their normal hours of work, and such pay shall for all purposes be considered to be wages. Division of leave (7) The leave of absence may be taken in one or two periods. The employer may require that each period of leave be not less than one day’s duration. Regulations (8) The Governor in Council may make regulations defining any expression for the purposes of this section, including the expressions “regular rate of wages” and “normal hours of work”. 199 (1) Subsection 207.3(3) of the Act is replaced by the following: Notice — leave of more than four weeks (3) If the length of the leave taken under any of sections 206.3 to 206.5, paragraph 206.51(3)(a) or section 206.9 is more than four weeks, the notice in writing of any change in the length of the leave shall be provided on at least four weeks’ notice, unless there is a valid reason why that cannot be done. (2) Subsection 207.3(5) of the Act is replaced by the following: Return to work postponed (5) If an employee who takes a leave of more than four weeks under any of sections 206.3 to 206.5 or paragraph 206.51(3)(a) wishes to shorten the length of the leave but does not provide the employer with four weeks’ notice, the employer may postpone the employee’s return to work for a period of up to four weeks after the day on which the employee informs the employer of the new end date of the leave. If the employer informs the employee that their return to work is postponed, the employee is not entitled to return to work until the day that is indicated by the employer. 200 (1) Paragraph 209.4(a) of the Act is replaced by the following: (a) specifying the absences from employment that are deemed not to have interrupted continuous employment referred to in any of sections 206.51 to 206.8; (2) Paragraph 209.4(g) of the Act is replaced by the following: (g) prescribing shorter periods of consecutive months of continuous employment for the purposes of subsections 206.51(6), 206.6(2), 206.7(2.1) and 206.8(1); 201 (1) Subsection 210(1.3) of the Act is replaced by the following: Notice to employer (1.3) Every employee who takes the leave of absence shall, as soon as possible, provide the employer with a notice in writing of the beginning of any period of leave of absence, the reasons for the leave and the length of the leave that they intend to take. Notice — change in length of leave (1.4) Every employee who is on the leave of absence shall, as soon as possible, provide the employer with a notice in writing of any change in the length of the leave that they intend to take. Notice — leave of more than four weeks (1.5) If the length of the leave of absence is more than four weeks, the notice in writing of any change in the length of the leave shall be provided on at least four weeks’ notice, unless there is a valid reason why that cannot be done. Return to work postponed (1.6) If an employee who takes the leave of absence for more than four weeks wishes to shorten the length of the leave but does not provide the employer with four weeks’ notice, the employer may postpone the employee’s return to work for a period of up to four weeks after the day on which the employee informs the employer of the new end date of the leave. If the employer informs the employee that their return to work is postponed, the employee is not entitled to return to work until the day that is indicated by the employer. Deemed part of leave (1.7) The period of the postponement is deemed to be part of the leave. (2) Subsection 210(3) of the Act is repealed. 202 The Act is amended by adding the following after section 210: Right to notice of employment opportunities 210. 1 An employee who takes a leave of absence from employment under this Division is entitled, on written request, to be informed in writing of every employment, promotion or training opportunity that arises during the period when the employee is on the leave of absence and for which the employee is qualified, and on receiving the request, every employer of the employee shall inform the employee accordingly. Resumption of employment in same position 210.2 (1) An employee who takes a leave of absence from employment under this Division is entitled to be reinstated in the position that the employee occupied when the leave of absence commenced, and the employer of the employee shall reinstate the employee in that position at the end of the leave. Comparable position (2) If for any valid reason an employer cannot reinstate an employee in the position referred to in subsection (1), the employer shall reinstate the employee in a comparable position with the same wages and benefits and in the same location. Wages and benefits affected by reorganization (3) If an employee takes leave under this Division and, during the period of that leave, the wages and benefits of the group of employees of which that employee is a member are changed as part of a plan to reorganize the industrial establishment in which that group is employed, that employee is entitled, on being reinstated in employment under this section, to receive the wages and benefits in respect of that employment that the employee would have been entitled to receive had they been working when the reorganization took place. Notice of changes in wages and benefits (4) The employer of every employee who is on a leave of absence under this Division and whose wages and benefits would be changed as a result of a reorganization referred to in subsection (3) shall notify the employee in writing of that change as soon as possible. Right to benefits 210.3 (1) The pension, health and disability benefits and the seniority of any employee who takes a leave of absence from employment under this Division accumulate during the entire period of the leave. Contributions by employee (2) If contributions are required from an employee in order for the employee to be entitled to a benefit referred to in subsection (1), the employee is responsible for and shall, within a reasonable time, pay those contributions for the period of any leave of absence under this Division unless, before or within a reasonable time after taking the leave, the employee notifies the employer of the employee’s intention to discontinue contributions during that period. Contributions by employer (3) An employer who pays contributions in respect of a benefit referred to in subsection (1) shall continue to pay those contributions during an employee’s leave of absence under this Division in at least the same proportion as if the employee were not on leave unless the employee does not pay the employee’s contributions, if any, within a reasonable time. Failure to pay contributions (4) For the purposes of calculating the pension, health and disability benefits of an employee in respect of whom contributions have not been paid as required under subsections (2) and (3), the benefits do not accumulate during the leave of absence and employment on the employee’s return to work is deemed to be continuous with employment before the employee’s absence. Deemed continuous employment (5) For the purposes of calculating benefits, other than benefits referred to in subsection (1), of an employee who takes a leave of absence under this Division, employment on the employee’s return to work is deemed to be continuous with employment before the employee’s absence. Effect of leave 210. 4 Despite the provisions of any income-replacement scheme or any insurance plan in force at the workplace, an employee who takes a leave of absence from employment under this Division is entitled to benefits under the scheme or plan on the same terms as any employee who is absent from work for health-related reasons and is entitled to benefits under the scheme or plan. Prohibition 210. 5 No employer shall (a) dismiss, suspend, lay off, demote or discipline an employee because the employee applies for, intends to take or has taken a leave of absence from employment under this Division; or (b) take into account the fact that an employee applies for, intends to take or has taken a leave of absence from employment under this Division in any decision to promote or train that employee. Regulations 210. 6 The Governor in Council may make regulations (a) defining the expression “immediate family” for the purposes of subsection 210(1); (b) for the purposes of subsection 210(2), (i) defining the expressions “regular rate of wages” and “normal hours of work”, and (ii) prescribing shorter periods of consecutive months of continuous employment; (c) specifying what does not constitute a valid reason for not reinstating an employee in the position referred to in subsection 210.2(2); (d) for the purposes of this Division, specifying the absences from employment that are deemed not to have interrupted continuity of employment; (e) specifying the circumstances in which a leave under this Division may be interrupted; and (f) extending the period within which a leave under this Division may be taken. 203 Subsection 246.1(1) of the Act is amended by adding the following after paragraph (a): (a.1) the employer has taken action against the employee in contravention of paragraph 210.5(a) or (b); 2021, c. 27 An Act to amend the Criminal Code and the Canada Labour Code 204 (1) Section 6.1 of An Act to amend the Criminal Code and the Canada Labour Code is amended by replacing the subsection 210(1) that it enacts with the following: Employee entitled 210 (1) Except when subsection (1.01) applies, every employee is entitled to and shall be granted, in the event of the death of a member of their immediate family or a family member in respect of whom the employee is, at the time of the death, on leave under section 206.3 or 206.4, a leave of absence from employment of up to 10 days that may be taken during the period that begins on the day on which the death occurs and ends six weeks after the latest of the days on which any funeral, burial or memorial service of that deceased person occurs. (2) Section 6.1 of the Act is amended by replacing the subsections 210(1.02) and (1.03) that it enacts with the following: Definition of child (1.02) In subsection (1.01), child means (a) a person who is under 18 years of age; or (b) a person in respect of whom the employee or their spouse or common-law partner, as the case may be, is entitled to the Canada caregiver credit under paragraph 118(1)(d) of the Income Tax Act . 205 Subsection 8(3) of the Act is replaced by the following: Section 6.1 (3) Section 6.1 comes into force on the day on which section 198 of the Fall Economic Statement Implementation Act, 2023 comes into force. Transitional Provision Subsection 210(1.3) 206 Subsection 210(1.3) of the Canada Labour Code , as enacted by subsection 201 (1), applies only with respect to leaves under section 210 of that Act that begin on or after the day on which that subsection 201 (1) comes into force. Coordinating Amendments 2021, c. 27 207 (1) In this section, other Act means An Act to amend the Criminal Code and the Canada Labour Code , chapter 27 of the Statutes of Canada, 2021. (2) If section 6.1 of the other Act comes into force before section 204 of this Act, then (a) sections 204 and 205 of this Act are deemed never to have come into force and are repealed; (b) subsection 210(1) of the Canada Labour Code is replaced by the following: Employee entitled 210 (1) Except when subsection (1.01) applies, every employee is entitled to and shall be granted, in the event of the death of a member of their immediate family or a family member in respect of whom the employee is, at the time of the death, on leave under section 206.3 or 206.4, a leave of absence from employment of up to 10 days that may be taken during the period that begins on the day on which the death occurs and ends six weeks after the latest of the days on which any funeral, burial or memorial service of that deceased person occurs. (c) subsections 210(1.02) and (1.03) of the Canada Labour Code are replaced by the following: Definition of child (1.02) In subsection (1.01), child means (a) a person who is under 18 years of age; or (b) a person in respect of whom the employee or their spouse or common-law partner, as the case may be, is entitled to the Canada caregiver credit under paragraph 118(1)(d) of the Income Tax Act . (3) If section 6.1 of the other Act and section 204 of this Act come into force on the same day, then that section 204 is deemed to have come into force before that section 6.1. Coming into Force 540th day or order in council 208 Sections 197 to 203 come into force on the 540th day after the day on which this Act receives royal assent or on an earlier day to be fixed by order of the Governor in Council. DIVISION 3 Canada Water Agency Act Enactment of Act Enactment 209 The Canada Water Agency Act is enacted as follows: An Act respecting the Canada Water Agency Preamble Whereas the Government of Canada recognizes the importance of taking action to respond to the growing challenges threatening the health and sustainable management of freshwater ecosystems; Whereas the Government of Canada wishes to foster collaboration with respect to freshwater issues; Whereas the Government of Canada wishes to contribute to the protection, conservation and restoration of the quality of fresh water and the health of freshwater ecosystems in Canada and to take other collaborative measures, including the development of policy and the promotion of sound governance with respect to fresh water, as well as the improvement of the ease of access to and use of relevant data; Whereas the Government of Canada recognizes the importance of relying on scientific knowledge related to fresh water and of relying, through cooperation with the Indigenous peoples of Canada, on Indigenous knowledge related to fresh water; Whereas the Government of Canada wishes to coordinate federal policies and programs with respect to freshwater issues; Whereas the Government of Canada is committed, in the course of exercising and performing its powers, duties and functions with respect to fresh water, to fostering reconciliation with the Indigenous peoples of Canada and to ensuring respect for their rights recognized and affirmed under section 35 of the Constitution Act, 1982 ; Whereas the Government of Canada is committed to implementing the United Nations Declaration on the Rights of Indigenous Peoples; Whereas the Government of Canada is committed to promoting cooperation with respect to freshwater issues with provincial and territorial governments and the Indigenous peoples of Canada; Whereas the Government of Canada wishes to promote cooperation with respect to freshwater issues with foreign governments, international organizations and interested persons and organizations; And whereas the Government of Canada considers that the creation of the Canada Water Agency will contribute to the coordination of federal efforts to promote sustainable freshwater management; Now, therefore, His Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: Short Title Short title 1 This Act may be cited as the Canada Water Agency Act . Definitions Definitions 2 The following definitions apply in this Act. Agency  means the Canada Water Agency established by section 3. ( Agence ) Minister  means the Minister of the Environment. ( ministre ) President  means the President of the Agency appointed under section 7. ( président ) Canada Water Agency Establishment 3 The Canada Water Agency is established for the purpose of assisting the Minister in exercising or performing the Minister’s powers, duties and functions in relation to fresh water under any Act of Parliament, including the Department of the Environment Act and the Canada Water Act . Head office 4 The head office of the Agency is to be at a place in Canada that is designated by the Governor in Council. Minister to preside 5 The Minister presides over the Agency and has the management and direction of it. Delegation to Agency 6 (1) The Minister may, subject to any terms and conditions that the Minister specifies, delegate to an officer or employee of the Agency any power, duty or function that the Minister is authorized to exercise or perform under any Act of Parliament in relation to fresh water. Restriction (2) However, the Minister is not authorized to delegate a power to make regulations or a power to delegate under subsection (1). President Appointment 7 The President of the Agency is to be appointed by the Governor in Council to hold office during pleasure for a renewable term of up to five years. Chief executive officer 8 The President is the chief executive officer of the Agency and has the rank and status of a deputy head of a department. Remuneration 9 The President is to be paid the remuneration fixed by the Governor in Council. General Provisions Officers and employees 10 The officers and employees necessary for the proper conduct of the work of the Agency are to be appointed in accordance with the Public Service Employment Act . Other government services and facilities 11 (1) A department, board or agency of the Government of Canada may provide to the Agency services and facilities that are necessary for carrying out the Agency’s purpose. Use of services and facilities (2) In exercising its powers and performing its duties and functions, the Agency must, where appropriate, make use of those services and facilities. Provision of services and facilities 12 The Agency may provide services and facilities to departments, boards and agencies of the Government of Canada. Committees 13 (1) The Minister may establish advisory committees in relation to fresh water and provide for their membership, duties, functions and operation. Remuneration (2) The Minister may fix the remuneration that members of a committee are to be paid for the performance of their duties and functions. Reimbursement (3) The Minister may determine whether members of a committee are to be reimbursed for the travel, living and other expenses incurred in the performance of their duties and functions while absent from their ordinary place of residence. Any such reimbursement is to be paid in accordance with Treasury Board directives. Transitional Provisions Definitions 14 The following definitions apply in sections 15 to 18. former agency  means the portion of the federal public administration, within the Department of the Environment, known as the Canada Water Agency.  ( ancienne agence ) new agency  means the Canada Water Agency established by section 3. ( nouvelle agence ) Position 15 (1) Nothing in this Act is to be construed as affecting the status of an employee who, immediately before the coming into force of this section, occupied a position in the former agency, except that the employee, on that coming into force, is to occupy that position in the new agency. Definition of employee (2) In subsection (1), employee has the same meaning as in subsection 2(1) of the Public Service Employment Act . Appropriations 16 Any amount that is appropriated by an Act of Parliament, for the fiscal year in which this section comes into force, to defray the expenditures of the former agency and that is unexpended on the day on which this section comes into force is deemed to be an amount appropriated to defray the expenditures of the new agency. Transfer of powers, duties and functions 17 Any power, duty or function that is exercisable by an officer or employee of the former agency under any Act, order, rule or regulation or under any contract, lease, licence or other document, is to be exercised by the appropriate officer or employee of the new agency. Clarification 18 For greater certainty, the powers, duties and functions referred to in section 17 include those related to the administration, in whole or in part, of any contract, lease, licence or other document that relates to the activities, management or operation of the former agency. Consequential Amendments R.S., c. A- 1 Access to Information Act 210 Schedule I to the Access to Information Act is amended by adding the following, in alphabetical order, under the heading “Other Government Institutions”: Canada Water Agency Agence canadienne de l’eau R.S., c. F- 11 Financial Administration Act 211 Schedule I.1 to the Financial Administration Act is amended by adding, in alphabetical order in column I, a reference to Canada Water Agency Agence canadienne de l’eau and a corresponding reference in column II to “Minister of the Environment.” 212 Schedule IV to the Act is amended by adding the following in alphabetical order: Canada Water Agency Agence canadienne de l’eau 213 Part II of Schedule VI to the Act is amended by adding, in alphabetical order in column I, a reference to Canada Water Agency Agence canadienne de l’eau and a corresponding reference in column II to “President.” R.S., c. P- 21 Privacy Act 214 The schedule to the Privacy Act is amended by adding the following, in alphabetical order, under the heading “Other Government Institutions”: Canada Water Agency Agence canadienne de l’eau R.S., c. P- 36 Public Service Superannuation Act 215 Part I of Schedule I to the Public Service Superannuation Act is amended by adding the following in alphabetical order: Canada Water Agency Agence canadienne de l’eau Coming into Force Order in council 216 The provisions of the Canada Water Agency Act , as enacted by section 209 , and sections 210 to 215 , come into force on a day or days to be fixed by order of the Governor in Council. DIVISION 4 1997, c. 13; 2018, c. 9, s. 2 Tobacco and Vaping Products Act 217 The Tobacco and Vaping Products Act is amended by adding the following after section 42: PART V. 01 Fees and Charges Regulations by Minister 42.1 (1) The Minister may make regulations respecting fees or charges to be paid by manufacturers for the purpose of recovering the costs incurred by His Majesty in right of Canada in relation to the carrying out of the purpose of this Act, including regulations (a) fixing the fees or charges or providing for the manner of calculating them; (b) requiring manufacturers to submit to the Minister information for the calculation of the fees or charges and prescribing the information that manufacturers must submit as well as the form and manner in which and the time within which the information must be submitted; (c) respecting the payment of the fees or charges, including the time and manner of payment; (d) respecting, for the purposes of section 42.13 , the information that the Minister must make available to the public, including (i) the name of each manufacturer who is required to pay the fees or charges, (ii) information relating to whether each manufacturer has paid the fees or charges, (iii) information relating to whether each manufacturer has submitted the information required under this Part, and (iv) information relating to the measures taken in respect of each manufacturer who has failed to pay the fees or charges or submit the information required under this Part; and (e) prescribing anything that by this Part is to be prescribed. Consultation (2) Before making regulations, the Minister must consult with any persons or entities that the Minister considers to be interested in the matter. Remission 42.11 (1) The Minister may, by order, remit all or part of any fee or charge provided for under this Part or the interest on it. Remission may be conditional (2) A remission may be conditional. Conditional remission (3) If a remission is conditional and the condition is not fulfilled, then the remission is cancelled and is deemed never to have been granted. Documents to be kept 42.12 (1) Every manufacturer must keep, in the prescribed manner and for the prescribed time, all documents that they used in order to submit the information required under this Part to the Minister. Keeping and providing documents (2) The manufacturer must keep the documents at their place of business in Canada or at any prescribed place and must, on written request, provide them to the Minister. Public disclosure by Minister 42. 13 The Minister must make available to the public, within the prescribed time, the information relating to the fees and charges provided for under this Part that is required by the regulations. Debt to His Majesty 42.14 (1) Any fees or charges payable under this Part constitute a debt due to His Majesty in right of Canada that may be recovered in a court of competent jurisdiction. Limitation period or prescription (2) No proceedings to recover a debt due to His Majesty in right of Canada under subsection (1) may be commenced later than five years after the day on which the debt became payable. Certificate of default 42.15 (1) Any debt that may be recovered under subsection 42.14 (1) in respect of which there is a default of payment, or the part of any such debt that has not been paid, may be certified by the Minister. Judgment (2) On production to the Federal Court, a certificate made under subsection (1) must be registered in that Court and, when registered, has the same force and effect, and all proceedings may be taken on the certificate, as if it were a judgment obtained in that Court for a debt of the amount specified in the certificate and all reasonable costs and charges attendant in the registration of the certificate. Prohibition on sale 42.16 (1) The Minister may, by order, prohibit the sale of a tobacco product or vaping product by a manufacturer who fails to pay the fees or charges payable under this Part or submit the information required under this Part. Statutory Instruments Act (2) An order made under subsection (1) is not a statutory instrument within the meaning of the Statutory Instruments Act . 218 The Act is amended by adding the following after section 46: Offences related to fees and charges 46. 1 Every manufacturer who contravenes subsection 42.12 (1) or (2) or an order made under subsection 42.16 (1) is guilty of an offence and liable on summary conviction to a fine not exceeding $50,000. DIVISION 5 R.S., c. C-21; S.C. 2001, c. 9, s. 218 Canadian Payments Act Amendments to the Act 219 (1) Paragraph (b) of the definition central cooperative credit society and central in subsection 2(1) of the English version of the Canadian Payments Act is replaced by the following: (b) whose directors are wholly or primarily individuals elected or appointed by local cooperative credit societies; ( société coopérative de crédit centrale ou centrale ) (2) Subsection 2(1) of the Act is amended by adding the following in alphabetical order: entity  includes a corporation, trust, partnership, fund, agency and unincorporated association or organization; ( entité ) person  includes an entity; ( personne ) 220 (1) Paragraph 4(2)(a) of the Act is replaced by the following: (a) a central, a trust company, a loan company, a local and any other person that accepts deposits transferable by order; (b) a clearing house , as defined in section 2 of the Payment Clearing and Settlement Act , of a clearing and settlement system designated under subsection 4(1) of that Act; (2) Subsection 4(2) of the Act is amended by striking out “and” at the end of paragraph (g), by adding “and” at the end of paragraph (h) and by adding the following after paragraph (h): (i) a payment service provider , as defined in section 2 of the Retail Payment Activities Act , that performs retail payment activities , as defined in that section. 221 The portion of subsection 9(1) of the English version of the Act before paragraph (a) is replaced by the following: Ineligibility 9 (1) No individual is eligible to be a director if they are 222 (1) Subparagraph 18(1)(k)(ii) of the Act is replaced by the following: (ii) the remuneration of directors referred to in paragraph 8(1)(d) and of individuals referred to in subsection 21.2(7), (2) Subparagraph 18(1)(k)(iii) of the English version of the Act is replaced by the following: (iii) the procedures for the nomination, selection and appointment of individuals to be members of the Stakeholder Advisory Council or the Member Advisory Council. 223 Subsection 20(1) of the French version of the Act is replaced by the following: Comité de nomination 20 (1) Le conseil constitue un comité de nomination chargé de désigner des candidats compétents et de proposer leur candidature à l’élection d’administrateurs. 224 Section 21 of the Act is replaced by the following: Other committees 21 The Board may, subject to the regulations, establish other committees consisting of such individuals as the Board considers appropriate. 225 (1) Subsection 21.2(1) of the Act is replaced by the following: Stakeholder Advisory Council 21.2 (1) There shall be a Stakeholder Advisory Council consisting of individuals who are independent of the Association and of its members and are appointed by the Board in consultation with the Minister. (2) Subsection 21.2(5) of the Act is replaced by the following: Representative character (5) The Council shall be broadly representative of users and payment service providers that are not members of the Association. (3) The portion of subsection 21.2(7) of the Act before paragraph (a) is replaced by the following: Remuneration (7) The Association may pay the remuneration that is fixed by by-law to the following individuals: (4) Paragraph 21.2(7)(b) of the Act is replaced by the following: (b) any individual who represents the interests of such a member or who is represented by such a member. 226 Subsection 21.4(1) of the Act is replaced by the following: Member Advisory Council 21.4 (1) There shall be a Member Advisory Council consisting of individuals appointed by the Board. 227 Paragraph 35(1)(b) of the English version of the Act is replaced by the following: (b) respecting the election of directors of the Association, including the eligibility of individuals to be elected as directors, and defining independent for the purposes of paragraph 8(1)(d); 228 Paragraph 40(1)(a) of the English version of the Act is replaced by the following: (a) the conditions an entity must meet to become a participant in the designated payment system; 229 Section 49 of the Act is replaced by the following: Review 50 On the fourth anniversary of the day on which this section comes into force, the Minister shall cause to be conducted a review of this Act and its operation and cause a report on the review to be laid before each House of Parliament on any of the first 15 days on which that House is sitting after the review is completed. Coming into Force Order in council 230 Sections 219 to 228 come into force on a day or days to be fixed by order of the Governor in Council. DIVISION 6 Measures Related to Competition R.S., c. C-34; R.S., c. 29 (2nd Supp.), s. 19 Competition Act 231 Subsections 19(4) and (5) of the Competition Act are replaced by the following: Determination of claim to privilege (4) A judge of a superior or county court in the province in which a record placed in custody under this section was ordered to be produced or in which it was found, or of the Federal Court, sitting in camera , may decide the question of solicitor-client privilege in relation to the record on application made in accordance with the rules of the court by the Commissioner or the owner of the record or the person in whose possession it was found if notice of the application has been given by the applicant to all other persons entitled to make application. 232 Section 45.1 of the Act is replaced by the following: Application made under section 76, 79, 90.1 or 92 45. 1 No proceedings may be commenced under subsection 45(1) or (1.1) against a person on the basis of facts that are the same or substantially the same as the facts on the basis of which an order against that person is sought by the Commissioner under section 76, 79, 90.1 or 92. 233 Subsection 52(7) of the Act is replaced by the following: Duplication of proceedings (7) No proceedings may be commenced under this section against a person against whom an order is, on application by the Commissioner, sought under Part VII.1 on the basis of the same or substantially the same facts as would be alleged in proceedings under this section. 233. 1 Subsection 52(1.3) of the Act is replaced by the following: Drip pricing (1.3) For greater certainty, the making of a representation of a price that is not attainable due to fixed obligatory charges or fees constitutes a false or misleading representation, unless the obligatory charges or fees represent only an amount imposed on a purchaser of the product referred to in subsection (1) by or under an Act of Parliament or the legislature of a province. 234 (1) Section 52.01 of the Act is amended by adding the following after subsection (4): Drip pricing (4.1) For greater certainty, the making of a representation of a price that is not attainable due to fixed obligatory charges or fees constitutes a false or misleading representation, unless the obligatory charges or fees represent only an amount imposed on a purchaser of the product referred to in subsections (1) to (3) by or under an Act of Parliament or the legislature of a province. (2) Subsection 52.01(8) of the Act is replaced by the following: Application made under Part VII.1 (8) No proceedings may be commenced under this section against a person on the basis of facts that are the same or substantially the same as the facts on the basis of which an order against that person is, on application by the Commissioner, sought under Part VII.1. 235 Subsection 67(4) of the Act is replaced by the following: Corporations — trials with or without jury (4) Despite anything in the Criminal Code or in any other statute or law, the following rules apply to corporations charged with an offence under this Act: (a) if one or more corporations are charged and no individual is charged in the same indictment, the corporation or corporations are to be tried without a jury; (b) if one or more corporations and a single individual are charged in the same indictment, then, unless the court is satisfied that the ends of justice require otherwise, the corporation or corporations are to be tried (i) without a jury if the individual elects or re-elects to be tried without a jury, or (ii) with a jury if the individual elects or re-elects to be tried with a jury; and (c) if one or more corporations and two or more individuals are charged in the same indictment, then, unless the court is satisfied that the ends of justice require otherwise, the corporation or corporations are to be tried (i) without a jury if all the individuals elect or re-elect to be tried without a jury, (ii) with a jury if all the individuals elect or re-elect to be tried with a jury, or (iii) either with or without a jury, as determined by the Attorney General of Canada for each corporation, if some but not all of the individuals elect or re-elect to be tried without a jury. 236 (1) Subsection 74.01(1) of the Act is amended by striking out “or” at the end of paragraph (b) and by adding the following after that paragraph: (b.1) makes a representation to the public in the form of a statement, warranty or guarantee of a product’s benefits for protecting or restoring the environment or mitigating the environmental, social and ecological causes or effects of climate change that is not based on an adequate and proper test, the proof of which lies on the person making the representation; (b.2) makes a representation to the public with respect to the benefits of a business or business activity for protecting or restoring the environment or mitigating the environmental and ecological causes or effects of climate change that is not based on adequate and proper substantiation in accordance with internationally recognized methodology, the proof of which lies on the person making the representation; or (1.1) Subsection 74.01(1.1) of the Act is replaced by the following: Drip pricing (1.1) For greater certainty, the making of a representation of a price that is not attainable due to fixed obligatory charges or fees constitutes a false or misleading representation, unless the obligatory charges or fees represent only an amount imposed on a purchaser of the product referred to in subsection (1) by or under an Act of Parliament or the legislature of a province. (2) Subsection 74.01(3) of the Act is replaced by the following: Ordinary price: supplier’s own (3) A person engages in reviewable conduct who, for the purpose of promoting, directly or indirectly, the supply or use of a product or for the purpose of promoting, directly or indirectly, any business interest, by any means, makes a representation to the public as to the price at which a product or like products have been, are or will be ordinarily supplied by the person making the representation unless that person, having regard to the nature of the product and the relevant geographic market, establishes that (a) they have sold a substantial volume of the product at that price or a higher price within a reasonable period of time before or after the making of the representation, as the case may be; or (b) they have offered the product at that price or a higher price in good faith for a substantial period of time recently before or immediately after the making of the representation, as the case may be. 237 Section 74.011 of the Act is amended by adding the following after subsection (3): Drip pricing (3.1) For greater certainty, the making of a representation of a price that is not attainable due to fixed obligatory charges or fees constitutes a false or misleading representation, unless the obligatory charges or fees represent only an amount imposed on a purchaser of the product referred to in subsections (1) to (3) by or under an Act of Parliament or the legislature of a province. Proof of deception not required (3.2) For greater certainty, in determining whether or not the person who made the representation engaged in the reviewable conduct, it is not necessary to establish that any person was deceived or misled. 238 Section 74.09 of the Act is replaced by the following: Definition of court 74. 09 In sections 74.1 to 74.14 and 74.18, court means (a) in respect of an application by the Commissioner, the Tribunal, the Federal Court or the superior court of a province; and (b) in respect of an application made by a person granted leave under section 103.1, the Tribunal. 239 (1) The portion of subsection 74.1(1) of the Act before paragraph (a) is replaced by the following: Determination of reviewable conduct and judicial order 74.1 (1) If, on application by the Commissioner or a person granted leave under section 103.1, a court determines that a person is engaging in or has engaged in reviewable conduct under this Part, the court may order the person (2) The portion of subsection 74.1(6) of the Act before paragraph (a) is replaced by the following: Meaning of subsequent order (6) For the purposes of paragraph (1)(c), an order made against a person in respect of conduct that is reviewable under paragraph 74.01(1)(a), (b), (b.1) or (c), subsection 74.01(2) or (3) or section 74.011, 74.02, 74.04, 74.05 or 74.06 is a subsequent order if (3) Paragraph 74.1(6)(c) of the Act is replaced by the following: (c) in the case of an order in respect of conduct reviewable under paragraph 74.01(1)(a) or section 74.011, the person was previously convicted of an offence under section 52, or under paragraph 52(1)(a) as it read immediately before the coming into force of this Part; or (4) Section 74.1 of the Act is amended by adding the following after subsection (9): Inferences (10) In considering an application by a person granted leave under section 103.1, the Tribunal may not draw any inference from the fact that the Commissioner has or has not taken any action in respect of the matter raised by the application. 240 Section 74.11 of the Act is replaced by the following: Temporary order 74.11 (1) On application by the Commissioner or a person granted leave under section 103.1, a court may order a person who it appears to the court is engaging in conduct that is reviewable under this Part not to engage in that conduct or substantially similar reviewable conduct if it appears to the court that (a) serious harm is likely to ensue unless the order is issued; and (b) the balance of convenience favours issuing the order. Temporary order — supply of a product (1.1) On application by the Commissioner or a person granted leave under section 103.1, a court may order any person named in the application to refrain from supplying to another person a product that it appears to the court is or is likely to be used to engage in conduct that is reviewable under this Part, or to do any act or thing that it appears to the court could prevent a person from engaging in such conduct, if it appears to the court that (a) serious harm is likely to ensue unless the order is issued; and (b) the balance of convenience favours issuing the order. Duration (2) Subject to subsection (5), an order made under subsection (1) or (1.1) has effect, or may be extended on application by the Commissioner or a person granted leave under section 103.1, for any period that the court considers sufficient to meet the circumstances of the case. Notice of application (3) Subject to subsection (4), at least 48 hours’ notice of an application referred to in subsection (1), (1.1) or (2) must be given by or on behalf of the Commissioner or the person granted leave under section 103.1 to the person in respect of whom the order or extension is sought. Ex parte application (4) The court may proceed ex parte with an application made by the Commissioner under subsection (1) or (1.1) if it is satisfied that subsection (3) cannot reasonably be complied with or that the urgency of the situation is such that service of notice in accordance with subsection (3) would not be in the public interest. Duration of ex parte order (5) An order issued ex parte as the result of an application made by the Commissioner under subsection (1) or (1.1) has effect for the period that is specified in it, not exceeding seven days unless, on further application made by the Commissioner on notice as provided in subsection (3), the court extends the order for any additional period that it considers necessary and sufficient. Duty of Commissioner (6) If an order issued under this section as the result of an application made by the Commissioner under subsection (1) or (1.1) is in effect, the Commissioner must proceed as expeditiously as possible to complete the inquiry under section 10 arising out of the conduct in respect of which the order was issued. 241 (1) Subsections 74.111(1) to (6) of the Act are replaced by the following: Interim injunction 74.111 (1) If, on application by the Commissioner or a person granted leave under section 103.1, a court finds a strong prima facie case that a person is engaging in or has engaged in conduct that is reviewable under paragraph 74.01(1)(a), and the court is satisfied that the person owns or has possession or control of articles within the jurisdiction of the court and is disposing of or is likely to dispose of them by any means, and that the disposal of the articles will substantially impair the enforceability of an order made under paragraph 74.1(1)(d), the court may issue an interim injunction forbidding the person or any other person from disposing of or otherwise dealing with the articles, other than in the manner and on the terms specified in the injunction. Statement to be included (2) Any application for an injunction under subsection (1) must include a statement that the Commissioner or the person granted leave under section 103.1 has applied for an order under paragraph 74.1(1)(d), or that the Commissioner or the person intends to apply for an order under that paragraph if the Commissioner or the person applies for an order under paragraph 74.1(1)(a). Duration (3) Subject to subsection (6), the injunction has effect, or may be extended on application by the Commissioner or the person granted leave under section 103.1, for any period that the court considers sufficient to meet the circumstances of the case. Notice of application (4) Subject to subsection (5), at least 48 hours’ notice of an application referred to in subsection (1) or (3) must be given by or on behalf of the Commissioner or the person granted leave under section 103.1 to the person in respect of whom the injunction or extension is sought. Ex parte application (5) The court may proceed ex parte with an application made by the Commissioner under subsection (1) if it is satisfied that subsection (4) cannot reasonably be complied with or that the urgency of the situation is such that service of the notice in accordance with subsection (4) might defeat the purpose of the injunction or would otherwise not be in the public interest. Duration of ex parte injunction (6) An injunction issued ex parte as the result of an application made by the Commissioner under subsection (1) has effect for the period that is specified in it, not exceeding seven days unless, on further application made by the Commissioner on notice as provided in subsection (4), the court extends the injunction for any additional period that it considers sufficient. (2) Subsection 74.111(8) of the Act is replaced by the following: Duty of Commissioner (8) If an injunction issued under this section as the result of an application made by the Commissioner under subsection (1) is in effect, the Commissioner must proceed as expeditiously as possible to complete any inquiry under section 10 arising out of the conduct in respect of which the injunction was issued. 242 The Act is amended by adding the following after section 74.12: Failure to comply with consent agreement 74.121 (1) If, on application by the Commissioner, the court determines that a person, without good and sufficient cause, the proof of which lies on the person, has failed to comply or is likely to fail to comply with a consent agreement registered under subsection 74.12(3), the court may (a) prohibit the person from doing anything that, in the court’s opinion, may constitute a failure to comply with the agreement; (b) order the person to take any action that is necessary to comply with the agreement; (c) order the person to pay, in any manner that the court specifies, an administrative monetary penalty in an amount not exceeding $10,000 for each day on which they fail to comply with the agreement, determined by the court after taking into account any evidence of the following: (i) the person’s financial position, (ii) the person’s history of compliance with this Act, (iii) the duration of the period of non-compliance, and (iv) any other relevant factor; or (d) grant any other relief that the court considers appropriate. Purpose of order (2) The terms of an order under paragraph (1)(c) are to be determined with a view to promoting conduct by the person that is in conformity with the purposes of this Act and not with a view to punishment. Unpaid monetary penalty (3) The administrative monetary penalty imposed under paragraph (1)(c) is a debt due to His Majesty in right of Canada and may be recovered as such from the person in a court of competent jurisdiction. 243 The Act is amended by adding the following after section 74.13: Consent agreement — parties to a private action 74.131 (1) If a person granted leave under section 103.1 makes an application to the Tribunal for an order under section 74.1 and the terms of the order are agreed to by the person in respect of whom the order is sought and consistent with the provisions of this Act, a consent agreement may be filed with the Tribunal for registration. Notice to Commissioner (2) On filing the consent agreement with the Tribunal for registration, the parties shall serve a copy of it on the Commissioner without delay. Publication (3) The consent agreement must be published without delay in the Canada Gazette . Registration (4) The consent agreement must be registered within 30 days after its publication unless a third party makes an application to the Tribunal before then to cancel the agreement or replace it with an order of the Tribunal. Effect of registration (5) On registration, the consent agreement has the same force and effect, and proceedings may be taken, as if it were an order of the Tribunal. Commissioner may intervene (6) On application by the Commissioner, the Tribunal may vary or rescind a registered consent agreement if it finds that the agreement is not in conformity with the purposes of this Part. Notice (7) The Commissioner must give notice of an application under subsection (6) to the parties to the consent agreement. Failure to comply with consent agreement 74.132 (1) If, on application by the Commissioner, the Tribunal determines that a person, without good and sufficient cause, the proof of which lies on the person, has failed to comply or is likely to fail to comply with a consent agreement registered under subsection 74.131(4), the Tribunal may (a) prohibit the person from doing anything that, in the Tribunal’s opinion, may constitute a failure to comply with the agreement; (b) order the person to take any action that is necessary to comply with the agreement; (c) order the person to pay, in any manner that the Tribunal specifies, an administrative monetary penalty in an amount not exceeding $10,000 for each day on which they fail to comply with the agreement, determined by the Tribunal after taking into account any evidence of the following: (i) the person’s financial position, (ii) the person’s history of compliance with this Act, (iii) the duration of the period of non-compliance, and (iv) any other relevant factor; or (d) grant any other relief that the Tribunal considers appropriate. Purpose of order (2) The terms of an order under paragraph (1)(c) are to be determined with a view to promoting conduct by the person that is in conformity with the purposes of this Act and not with a view to punishment. Unpaid monetary penalty (3) The administrative monetary penalty imposed under paragraph (1)(c) is a debt due to His Majesty in right of Canada and may be recovered as such from the person in a court of competent jurisdiction. Service of agreement on Commissioner 74.133 (1) If a person granted leave under section 103.1 makes an application to the Tribunal for an order under section 74.1 and the person discontinues the application by reason of having entered into an agreement with any other person, the parties to the agreement must serve a copy of it on the Commissioner within 10 days after the day on which it is entered into. Commissioner may intervene (2) On application by the Commissioner, the Tribunal may vary or rescind the agreement if it finds that the agreement is not in conformity with the purposes of this Part. Notice (3) The Commissioner must give notice of an application under subsection (2) to the parties to the agreement. Failure to serve 74.134 (1) If, on application by the Commissioner, the Tribunal determines that a person, without good and sufficient cause, the proof of which lies on the person, has failed to serve a copy of an agreement on the Commissioner in accordance with subsection 74.133(1), the Tribunal may (a) order the person to serve the Commissioner with a copy of the agreement; (b) issue an interim order prohibiting any person from doing anything that, in the Tribunal’s opinion, may constitute or be directed toward the implementation of the agreement; (c) order the person to pay, in any manner that the Tribunal specifies, an administrative monetary penalty in an amount not exceeding $10,000 for each day on which they fail to serve a copy of the agreement on the Commissioner, determined by the Tribunal after taking into account any evidence of the following: (i) the person’s financial position, (ii) the person’s history of compliance with this Act, (iii) the duration of the period of non-compliance, and (iv) any other relevant factor; or (d) grant any other relief that the Tribunal considers appropriate. Purpose of order (2) The terms of an order under paragraph (1)(c) are to be determined with a view to promoting conduct by the person that is in conformity with the purposes of this Act and not with a view to punishment. Unpaid monetary penalty (3) The administrative monetary penalty imposed under paragraph (1)(c) is a debt due to His Majesty in right of Canada and may be recovered as such from the person in a court of competent jurisdiction. 244 (1) Subsection 75(1) of the Act is replaced by the following: Jurisdiction of Tribunal — cases of refusal to deal 75 (1) The Tribunal may, on application by the Commissioner or a person granted leave under section 103.1, order one or more suppliers of a product, including a means of diagnosis or repair, in a market to accept a person as a customer, or to make the means of diagnosis or repair available to a person, within a specified period and on the terms that the Tribunal considers appropriate if the Tribunal finds that (a) the person is substantially affected in the whole or part of their business or is precluded from carrying on business due to their inability to obtain adequate supplies of the product anywhere in the market on usual trade terms; (b) the person is unable to obtain adequate supplies of the product because of insufficient competition among suppliers of the product in the market; (c) the person is willing and able to meet the usual trade terms of the supplier or suppliers of the product; (d) the product is in ample supply or, in the case of a means of diagnosis or repair, can be readily supplied; and (e) the refusal to deal is having or is likely to have an adverse effect on competition in a market. Non-application (1.1) An order made under subsection (1) does not apply in the case of an article if, within the specified time, any customs duties on the article are removed, reduced or remitted and the effect of the removal, reduction or remission is to place the person on an equal footing with other persons who are able to obtain adequate supplies of the article in Canada. (2) Section 75 of the Act is amended by adding the following after subsection (1.1): Additional order — person granted leave (1.2) If the Tribunal makes an order under subsection (1) as the result of an application by a person granted leave under section 103.1, it may also order any supplier in respect of whom the order applies to pay an amount, not exceeding the value of the benefit derived from the conduct that is the subject of the order, to be distributed among the applicant and any other person affected by the conduct, in any manner that the Tribunal considers appropriate. Implementation of the order (1.3) The Tribunal may specify in an order made under subsection (1.2) any term that it considers necessary for the order’s implementation, including a term (a) specifying how the payment is to be administered; (b) respecting the appointment of an administrator to administer the payment and specifying the terms of administration; (c) requiring the person against whom the order is made to pay the administrative costs related to the payment as well as the fees to be paid to an administrator; (d) requiring that potential claimants be notified in the time and manner specified by the Tribunal; (e) specifying the time and manner for making claims; (f) specifying the conditions for the eligibility of claimants, including conditions relating to the return of the products to the person against whom the order is made; and (g) providing for the manner in which, and the terms on which, any amount of the payment that remains unclaimed or undistributed is to be dealt with. (3) Subsection 75(3) of the Act is replaced by the following: Trade secrets (2.1) Nothing in this section is to be interpreted as requiring the disclosure of any information that is a trade secret. Definitions (3) The following definitions apply in this section. means of diagnosis or repair  includes diagnostic, maintenance, repair and calibration information, technical updates, diagnostic software or tools and any related documentation and service parts. ( moyen de diagnostic ou de réparation ) trade terms  means terms in respect of payment, units of purchase and reasonable technical and servicing requirements. ( conditions de commerce ) 245 (1) Paragraph 76(11)(b) of the Act is replaced by the following: (b) an order against that person has been made under section 79 or 90.1. (2) Section 76 of the Act is amended by adding the following after subsection (11): Additional order — person granted leave (11.1) If the Tribunal makes an order under subsection (2) as the result of an application by a person granted leave under section 103.1, it may also order the person against whom the order is made to pay an amount, not exceeding the value of the benefit derived from the conduct that is the subject of the order, to be distributed among the applicant and any other person affected by the conduct, in any manner that the Tribunal considers appropriate. Implementation of the order (11.2) The Tribunal may specify in an order made under subsection (11.1) any term that it considers necessary for the order’s implementation, including any term referred to in any of paragraphs 75(1.3)(a) to (g). 246 Subsection 77(3.1) of the Act is replaced by the following: Additional order — person granted leave (3.1) If the Tribunal makes an order under subsection (2) or (3) as the result of an application by a person granted leave under section 103.1, it may also order any supplier in respect of whom the order applies to pay an amount, not exceeding the value of the benefit derived from the conduct that is the subject of the order, to be distributed among the applicant and any other person affected by the conduct, in any manner that the Tribunal considers appropriate. Implementation of the order (3.2) The Tribunal may specify in an order made under subsection (3.1) any term that it considers necessary for the order’s implementation, including any term referred to in any of paragraphs 75(1.3)(a) to (g). 247 (1) Subsection 79(3.2) of the Act is amended by adding the following after paragraph (d): (d.1) the amount that the person against whom the order is made is required to pay under an order made under subsection (4.1); (2) Section 79 of the Act is amended by adding the following after subsection (4): Additional order — person granted leave (4.1) If, as the result of an application by a person granted leave under section 103.1, the Tribunal makes an order under subsection (1) or (2), it may also order the person against whom the order is made to pay an amount, not exceeding the value of the benefit derived from the practice that is the subject of the order, to be distributed among the applicant and any other person affected by the practice, in any manner that the Tribunal considers appropriate. Implementation of the order (4.2) The Tribunal may specify in an order made under subsection (4.1) any term that it considers necessary for the order’s implementation, including any term referred to in any of paragraphs 75(1.3)(a) to (g). (3) Paragraph 79(7)(b) of the Act is replaced by the following: (b) an order against that person has been made under section 76, 90.1 or 92. 248 (1) The portion of subsection 90.1(1) of the Act before paragraph (a) is replaced by the following: Order 90.1 (1) If, on application by the Commissioner, the Tribunal finds that an agreement or arrangement or a proposed agreement or arrangement between persons of whom two or more are competitors prevents or lessens, has prevented or lessened or is likely to prevent or lessen competition substantially in a market, the Tribunal may make an order (2) The portion of subsection 90.1(1) of the Act before paragraph (a) is replaced by the following: Order 90.1 (1) If, on application by the Commissioner or a person granted leave under section 103.1, the Tribunal finds that an agreement or arrangement or a proposed agreement or arrangement between persons of whom two or more are competitors prevents or lessens, has prevented or lessened or is likely to prevent or lessen competition substantially in a market, the Tribunal may make an order (3) Section 90.1 of the Act is amended by adding the following after subsection (1): Additional or alternative order (1.1) If, on an application under subsection (1), the Tribunal finds that an agreement or arrangement has had or is having the effect of preventing or lessening competition substantially in a market and that an order under subsection (1) is not likely to restore competition in that market, the Tribunal may, in addition to or in lieu of making an order under subsection (1), make an order directing any or all the persons against whom an order is sought to take actions, including the divestiture of assets or shares, that are reasonable and as are necessary to overcome the effects of the agreement or arrangement in that market. Limitation (1.2) In making an order under subsection (1.1), the Tribunal shall make the order in such terms as will in its opinion interfere with the rights of any person to whom the order is directed or any other person affected by it only to the extent necessary to achieve the purpose of the order. Administrative monetary penalty (1.3) If the Tribunal makes an order against a person under subsection (1) or (1.1), it may also order them to pay, in any manner that the Tribunal specifies, an administrative monetary penalty in an amount not exceeding the greater of (a) $10,000,000 and, for each subsequent order under either of those subsections, an amount not exceeding $15,000,000, and (b) three times the value of the benefit derived from the agreement or arrangement, or, if that amount cannot be reasonably determined, 3% of the person’s annual worldwide gross revenues. Aggravating or mitigating factors (1.4) In determining the amount of an administrative monetary penalty, the Tribunal shall take into account any evidence of the following: (a) the effect on competition in the relevant market; (b) the gross revenue from sales affected by the agreement or arrangement; (c) any actual or anticipated profits affected by the agreement or arrangement; (d) the financial position of the person against whom the order is made; (e) the history of compliance with this Act by the person against whom the order is made; and (f) any other relevant factor. Purpose of order (1.5) The purpose of an order made against a person under subsection (1.3) is to promote practices by that person that are in conformity with the purposes of this section and not to punish that person. (4) Subsection 90.1(1.4) of the Act is amended by adding the following after paragraph (d): (d.1) any amount that the person against whom the order is made is required to pay under an order made under subsection (10.1); (5) Section 90.1 of the Act is amended by adding the following after subsection (9): Limitation period (9.1) No application may be made under this section in respect of an agreement or arrangement that has been terminated for more than three years. Unpaid monetary penalty (9.2) The administrative monetary penalty imposed on a person under subsection (1.3) is a debt due to His Majesty in right of Canada and may be recovered as such from that person in a court of competent jurisdiction. (6) Paragraph 90.1(10)(b) of the Act is replaced by the following: (b) an order against that person has been made under section 76, 79 or 92. (7) Section 90.1 of the Act is amended by adding the following after subsection (10): Additional order — person granted leave (10.1) If the Tribunal makes an order under subsection (1) as the result of an application by a person granted leave under section 103.1, it may also order the person against whom the order is made to pay an amount, not exceeding the value of the benefit derived from the conduct that is the subject of the order, to be distributed among the applicant and any other person affected by the conduct, in any manner that the Tribunal considers appropriate. Implementation of the order (10.2) The Tribunal may specify in an order made under subsection (10.1) any term that it considers necessary for the order’s implementation, including any term referred to in any of paragraphs 75(1.3)(a) to (g). Inferences (10.3) In considering an application by a person granted leave under section 103.1, the Tribunal may not draw any inference from the fact that the Commissioner has or has not taken any action in respect of the matter raised by the application. 249 (1) Paragraphs 92(1)(b) and (c) of the Act are replaced by the following: (b) among the sources from which a trade, industry or profession obtains a product, including labour, (c) among the outlets through which a trade, industry or profession disposes of a product, including labour, or (1.1) The portion of paragraph 92(1)(e) of the Act before subparagraph (i) is replaced by the following: (e) in the case of a completed merger, in order to restore competition to the level that would have prevailed but for the merger, order any party to the merger or any other person (1.2) The portion of paragraph 92(1)(f) of the Act before subparagraph (i) is replaced by the following: (f) in the case of a proposed merger, in order to preserve the level of competition that would prevail but for the merger, make an order directed against any party to the proposed merger or any other person (1.3) Clause 92(1)(f)(iii)(A) of the Act is replaced by the following: (A) prohibiting the person against whom the order is directed, should the merger or part thereof be completed, from doing any act or thing the prohibition of which the Tribunal determines to be necessary to ensure that the merger or part thereof does not prevent or lessen competition, or (2) Subsection 92(2) of the Act is replaced by the following: Evidence (2) For the purpose of this section, if the Tribunal finds, on a balance of probabilities, that a merger or proposed merger results or is likely to result in a significant increase in concentration or market share, the Tribunal shall also find that the merger or proposed merger prevents or lessens, or is likely to prevent or lessen, competition substantially, unless the contrary is proved on a balance of probabilities by the parties to the merger or proposed merger. Significant increase in concentration or market share (3) A merger or proposed merger results or is likely to result in a significant increase in concentration or market share if, in any relevant market, as a result of the merger or proposed merger, (a) the concentration index increases or is likely to increase by more than 100; and (b) either (i) the concentration index is or is likely to be more than 1,800, or (ii) the market share of the parties to the merger or proposed merger is or is likely to be more than 30%. Definition of concentration index (4) In subsection (3), concentration index means, in any relevant market, the sum of the squares of the market shares of the suppliers or customers. Regulations — different values (5) The Governor in Council may by regulation prescribe different values than those provided in subsection (3). 250 (1) Paragraph 93(g.1) of the Act is replaced by the following: (g.1) network effects within a market; (2) Section 93 of the Act is amended by striking out “and” at the end of paragraph (g.3) and by adding the following after that paragraph: (g.4) the change in concentration or market share that the merger or proposed merger has brought about or is likely to bring about; (g.5) any likelihood that the merger or proposed merger will or would result in express or tacit coordination between competitors in a market; and 251 Section 97 of the Act is replaced by the following: Limitation period 97 No application may be made under section 92, (a) in respect of a merger that was the subject of a request for a certificate under section 102 or a notification under section 114, more than one year after the merger has been substantially completed; or (b) in respect of any other merger, more than three years after the merger has been substantially completed. 252 Paragraph 98(b) of the Act is replaced by the following: (b) an order against that person has been made under section 79 or 90.1. 253 Section 100 of the Act is amended by adding the following after subsection (3): Effect of application for interim order (3.1) If an application for an interim order is made under subsection (1) in respect of a proposed merger, the merger shall not be completed until the application has been disposed of by the Tribunal. 254 (1) Subsections 103.1(1) and (2) of the Act are replaced by the following: Leave to make application under section 74.1, 75, 76, 77, 79 or 90.1 103.1 (1) Any person may apply to the Tribunal for leave to make an application under section 74.1, 75, 76, 77, 79 or 90.1. The application for leave must be accompanied by an affidavit setting out the facts in support of the person’s application under that section. Notice (2) The applicant must serve a copy of the application for leave on the Commissioner and any person against whom the order is sought under section 74.1, 75, 76, 77, 79 or 90.1, as the case may be. (2) Paragraph 103.1(3)(b) of the Act is replaced by the following: (b) was the subject of an inquiry that has been discontinued because of a settlement between the Commissioner and the person against whom the order is sought under section 74.1, 75, 76, 77, 79 or 90.1, as the case may be. (3) Subsection 103.1(4) of the Act is replaced by the following: Application discontinued (4) The Tribunal is not to consider an application for leave respecting a matter described in paragraph (3)(a) or (b) or a matter that is the subject of an application already submitted to the Tribunal by the Commissioner under section 74.1, 75, 76, 77, 79 or 90.1. (4) Subsection 103.1(7) of the Act is replaced by the following: Granting leave — section 74.1 (6.1) The Tribunal may grant leave to make an application under section 74.1 if it is satisfied that it is in the public interest to do so. Granting leave — sections 75, 77, 79 or 90.1 (7) The Tribunal may grant leave to make an application under section 75, 77, 79 or 90.1 if it has reason to believe that the applicant is directly and substantially affected in the whole or part of the applicant’s business by any conduct referred to in one of those sections that could be subject to an order under that section or if it is satisfied that it is in the public interest to do so. (5) Section 103.1 of the Act is amended by adding the following after subsection (7.1): Granting leave — section 90.1 (7.2) The Tribunal is not to consider an application for leave in respect of an application under section 90.1 that relates to an agreement or arrangement for which a certificate issued under subsection 124.3(1) is valid and registered. (6) Subsection 103.1(8) of the English version of the Act is replaced by the following: Time and conditions for making application (8) The Tribunal may set the time within which and the conditions subject to which an application under section 74.1, 75, 76, 77, 79 or 90.1 must be made. The application must be made no more than one year after the practice or conduct that is the subject of the application has ceased. (7) Subsection 103.1(10) of the Act is replaced by the following: Limitation (10) The Commissioner may not make an application for an order under section 74.1, 75, 76, 77, 79 or 90.1 on the basis of the same or substantially the same facts as are alleged in a matter for which the Tribunal has granted leave under subsection (6.1), (7) or (7.1), if the person granted leave has already applied to the Tribunal under one of those sections. 255 Section 103.2 of the Act is replaced by the following Intervention by Commissioner 103. 2 If a person granted leave under subsection 103.1(6.1), (7) or (7.1) makes an application under section 74.1, 75, 76, 77, 79 or 90.1, the Commissioner may intervene in the proceedings. 256 (1) Subsection 104(1) of the Act is replaced by the following: Interim order 104 (1) If an application has been made for an order under this Part, other than an interim order under section 100 or 103.3, the Tribunal, on application by the Commissioner or a person who has made an application under section 75, 76, 77, 79 or 90.1, may issue any interim order that it considers appropriate, having regard to the principles ordinarily considered by superior courts when granting interlocutory or injunctive relief. (2) Section 104 of the Act is amended by adding the following after subsection (1): Effect of application for interim order (1.1) If an application for an interim order is made under subsection (1) in respect of a proposed merger, the merger shall not be completed until the application has been disposed of by the Tribunal. 257 Subsection 106.1(1) of the Act is replaced by the following: Consent agreement — parties to a private action 106.1 (1) If a person granted leave under section 103.1 makes an application to the Tribunal for an order under section 75, 76, 77, 79 or 90.1 and the terms of the order are agreed to by the person in respect of whom the order is sought and consistent with the provisions of this Act, a consent agreement may be filed with the Tribunal for registration. 258 The Act is amended by adding the following after section 106.1: Failure to comply with consent agreement 106.2 (1) If, on application by the Commissioner, the Tribunal determines that a person, without good and sufficient cause, the proof of which lies on the person, has failed to comply or is likely to fail to comply with a consent agreement registered under subsection 105(3) or 106.1(4), the Tribunal may (a) prohibit the person from doing anything that, in the Tribunal’s opinion, may constitute a failure to comply with the agreement; (b) order the person to take any action that is necessary to comply with the agreement; (c) order the person to pay, in any manner that the Tribunal specifies, an administrative monetary penalty in an amount not exceeding $10,000 for each day on which they fail to comply with the agreement, determined by the Tribunal after taking into account any evidence of the following: (i) the person’s financial position, (ii) the person’s history of compliance with this Act, (iii) the duration of the period of non-compliance, and (iv) any other relevant factor; or (d) grant any other relief that the Tribunal considers appropriate. Purpose of order (2) The terms of an order under paragraph (1)(c) are to be determined with a view to promoting conduct by the person that is in conformity with the purposes of this Act and not with a view to punishment. Unpaid monetary penalty (3) The administrative monetary penalty imposed under paragraph (1)(c) is a debt due to His Majesty in right of Canada and may be recovered as such from the person in a court of competent jurisdiction. 259 The Act is amended by adding the following after section 106.2: Service of agreement on Commissioner 106.3 (1) If a person granted leave under section 103.1 makes an application to the Tribunal for an order under section 75, 76, 77, 79 or 90.1 and the person discontinues the application by reason of having entered into an agreement with any other person, the parties to the agreement must serve a copy of it on the Commissioner within 10 days after the day on which it was entered into. Commissioner may intervene (2) On application by the Commissioner, the Tribunal may vary or rescind the agreement if it finds that the agreement has or is likely to have anti-competitive effects. Notice (3) The Commissioner must give notice of an application under subsection (2) to the parties to the agreement. Failure to serve 106.4 (1) If, on application by the Commissioner, the Tribunal determines that a person, without good and sufficient cause, the proof of which lies on the person, has failed to serve a copy of an agreement on the Commissioner in accordance with subsection 106.3(1), the Tribunal may (a) order the person to serve the Commissioner with a copy of the agreement; (b) issue an interim order prohibiting any person from doing anything that, in the Tribunal’s opinion, may constitute or be directed toward the implementation of the agreement; (c) order the person to pay, in any manner that the Tribunal specifies, an administrative monetary penalty in an amount not exceeding $10,000 for each day on which they fail to serve a copy of the agreement on the Commissioner, determined by the Tribunal after taking into account any evidence of the following: (i) the person’s financial position, (ii) the person’s history of compliance with this Act, (iii) the duration of the period of non-compliance, and (iv) any other relevant factor; or (d) grant any other relief that the Tribunal considers appropriate. Purpose of order (2) The terms of an order under paragraph (1)(c) are to be determined with a view to promoting conduct by the person that is in conformity with the purposes of this Act and not with a view to punishment. Unpaid monetary penalty (3) The administrative monetary penalty imposed under paragraph (1)(c) is a debt due to His Majesty in right of Canada and may be recovered as such from the person in a court of competent jurisdiction. 260 The Act is amended by adding the following after section 107: PART VIII. 1 Matters Reviewable by a Court Definitions Definitions 107. 1 The following definitions apply in this Part: court  means the Federal Court or the superior court of a province. ( tribunal ) reprisal action  means an action taken by a person to penalize, punish, discipline, harass or disadvantage another person because of that person’s communications with the Commissioner or because that person has cooperated, testified or assisted, or has expressed an intention to cooperate, testify or assist in an investigation or proceeding under this Act. ( représailles ) Reprisal Action Prohibition orders 107. 2 If, following an application by the Commissioner or a person directly and substantially affected by an alleged reprisal action, a court concludes that a person is engaging, has engaged or is likely to engage in a reprisal action, it may make an order prohibiting the person from engaging in that action. Administrative Monetary Penalties 107. 3 If the court makes an order against a person under section 107.2 on the basis that the person is engaging in or has engaged in a reprisal action, it may also order them to pay an administrative monetary penalty, in any manner that the court specifies, in an amount not exceeding (a) in the case of an individual, $750,000 and for each subsequent order, $1,000,000; or (b) in the case of a corporation, $10,000,000 and for each subsequent order, $15,000,000. Purpose of order 107. 4 The terms of an order made against a person under section 107.3 are to be determined with a view to promoting conduct by that person that is in conformity with the purposes of this Act and not with a view to punishment. Aggravating or mitigating factors 107. 5 Any evidence of the following shall be taken into account in determining the amount of an administrative monetary penalty under section 107.3: (a) the frequency and duration of the conduct; (b) the vulnerability of the class of persons likely to be adversely affected by the conduct; (c) the financial position of the person against whom the order is made; (d) the history of compliance with this Act by the person against whom the order is made; and (e) any other relevant factor. Unpaid monetary penalty 107. 6 The administrative monetary penalty imposed under section 107.3 is a debt due to His Majesty in right of Canada and may be recovered as such from that person in a court of competent jurisdiction. 261 (1) Subsection 110(2) of the Act is replaced by the following: Acquisition of assets (2) Subject to sections 111 and 113, this Part applies in respect of a proposed acquisition of any of the assets in Canada and, if any, outside Canada, of an operating business if the aggregate value of the assets in Canada, determined as of the time and in the manner that is prescribed, or the gross revenues from sales in, from or into Canada generated from all the assets proposed to be acquired, determined for the annual period and in the manner that is prescribed, would exceed the amount determined under subsection (7) or (8), as the case may be. (2) Subparagraph 110(3)(a)(ii) of the Act is replaced by the following: (ii) the gross revenues from sales in, from or into Canada, determined for the annual period and in the manner that is prescribed, generated from all the assets that are owned by the corporation or by entities controlled by that corporation would exceed the amount determined under subsection (7) or (8), as the case may be; and (3) Section 110 of the Act is amended by adding the following after subsection (3): Acquisition of assets and shares (3.1) If a proposed transaction would be completed through an acquisition of assets referred to in subsection (2) and shares referred to in subsection (3), (a) the value of the assets calculated under subsection (2) and the value of the assets calculated under subparagraph (3)(a)(i) are to be aggregated for the purpose of determining if those assets exceed in aggregate value the amount determined under subsection (8); and (b) the gross revenues calculated under subsection (2) and the gross revenues calculated under subparagraph (3)(a)(ii) are to be aggregated for the purpose of determining if those gross revenues exceed in aggregate value the amount determined under subsection (8). (4) Paragraph 110(4)(b) of the Act is replaced by the following: (b) the gross revenues from sales in, from or into Canada, determined for the annual period and in the manner that is prescribed, generated from all the assets that would be owned by the continuing entity that would result from the amalgamation or by entities controlled by the continuing entity would exceed the amount determined under subsection (7) or (8), as the case may be. (5) The portion of subsection 110(5) of the Act before paragraph (a) is replaced by the following: Combination (5) Subject to sections 112 and 113, this Part applies in respect of a proposed combination of two or more persons to carry on business otherwise than through a corporation if one or more of those persons, or one or more of their affiliates, proposes to contribute to the combination assets that form all or part of an operating business carried on by those persons or affiliates, and if (6) Paragraph 110(5)(b) of the Act is replaced by the following: (b) the gross revenues from sales in, from or into Canada, determined for the annual period and in the manner that is prescribed, generated from all the assets that are the subject matter of the combination would exceed the amount determined under subsection (7) or (8), as the case may be. (7) Subparagraph 110(6)(a)(ii) of the Act is replaced by the following: (ii) the gross revenues from sales in, from or into Canada, determined for the annual period and in the manner that is prescribed, generated from all the assets that are the subject matter of the combination would exceed the amount determined under subsection (7) or (8), as the case may be; and 262 Paragraph 113(c) of the Act is replaced by the following: (c) a transaction in respect of which the Commissioner or a person authorized by the Commissioner has waived, during the year preceding the day on which the transaction was completed, the obligation under this Part to notify the Commissioner and supply information because substantially similar information was previously supplied in relation to a request for a certificate under section 102; and 263 The portion of subsection 123.1(1) of the Act before paragraph (a) is replaced by the following: Failure to comply 123.1 (1) If, on application by the Commissioner, the court determines that a person, without good and sufficient cause, the proof of which lies on the person, has completed or is likely to complete a proposed transaction before the end of the applicable period referred to in section 123 or without having given the notice or information required under subsection 114(1), the court may 264 Subsection 124.2(3) of the Act is replaced by the following: Reference by agreement of parties to a private action (3) A person granted leave under section 103.1 and the person against whom an order is sought under section 74.1, 75, 76, 77, 79 or 90.1 may by agreement refer to the Tribunal for determination any question of law, or mixed law and fact, in relation to the application or interpretation of Part VII.1 or VIII, if the Tribunal grants them leave. They must send a notice of their application for leave to the Commissioner, who may intervene in the proceedings. 265 The Act is amended by adding the following after section 124.2: Agreements and Arrangements Related to Protecting the Environment Certificate 124.3 (1) If the Commissioner is satisfied by a party or parties that propose to enter into an agreement or arrangement that it is for the purpose of protecting the environment and that it is not likely to prevent or lessen competition substantially in a market, they may issue a certificate that they are so satisfied. Duty of Commissioner (2) The Commissioner must consider any request for a certificate under this section as soon as practicable. Duty of party or parties (3) The party or parties seeking a certificate must, on request, provide to the Commissioner any information related to the agreement or arrangement. Content of certificate (4) The Commissioner must specify in the certificate the names of the parties to the agreement or arrangement as well as a description of the agreement or arrangement’s content. Terms (5) The Commissioner may specify in the certificate any terms that the Commissioner considers appropriate. Period of validity (6) The Commissioner must specify in the certificate its period of validity, which is not to exceed 10 years, and on request of the parties may extend that period for one or more additional periods not exceeding 10 years. Registration 124. 4 The Commissioner must file a certificate issued under subsection 124.3(1) with the Tribunal for immediate registration. Non-application of sections 45, 46, 47, 49 and 90.1 124. 5 Sections 45, 46, 47, 49 and 90.1 do not apply in respect of an agreement or arrangement that is the subject of a certificate issued under subsection 124.3(1) that is valid and registered. Notice of termination 124.6 (1) The parties to an agreement or arrangement that is the subject of a valid certificate issued under subsection 124.3(1) must, within 15 days of the day on which they terminate the agreement or arrangement, give notice of the termination to the Commissioner and the Tribunal. Rescission of certificate (2) The Tribunal must, without delay after receiving the notice, rescind the certificate. Rescission or variation of certificate 124. 7 The Tribunal may rescind or vary a certificate issued under subsection 124.3(1) if, on application by the Commissioner, the parties to the agreement or arrangement that is the subject of the certificate or a person directly and substantially affected in the whole or part of their business by the agreement or arrangement, the Tribunal finds that (a) the parties have terminated the agreement or arrangement without giving notice of the termination in accordance with subsection 124.6(1); (b) the parties have agreed, with the Commissioner’s consent, to vary the agreement or arrangement; (c) the agreement or arrangement is not being implemented in accordance with the description of it in the certificate; (d) the parties have failed to comply with the terms specified in the certificate; or (e) the agreement or arrangement prevents or lessens, or is likely to prevent or lessen, competition substantially in a market. R.S., c. 19 (2nd Supp.) Competition Tribunal Act 266 Subsection 8.1(3) of the Competition Tribunal Act is replaced by the following: No award against the Crown (3) Despite any other Act of Parliament, the Tribunal shall not award costs against His Majesty in right of Canada unless it is satisfied (a) that an award is necessary to maintain confidence in the administration of justice; or (b) that the absence of an award would have a substantial adverse effect on the other party’s ability to carry on business. Transitional Provisions Subsection 67(4) of the Competition Act 267 Subsection 67(4) of the Competition Act , as enacted by section 235 , applies only in respect of corporations that are charged with an offence under that Act on or after the day on which this Act receives royal assent. Subsection 92(2) of the Competition Act 268 Subsection 92(2) of the Competition Act , as that subsection read before the day on which subsection 249 (2) comes into force, continues to apply after that day in respect of a proposed transaction that was the subject of a notification provided under section 114 of that Act before that day or to a merger that is substantially completed before that day. Subsection 8.1(3) of the Competition Tribunal Act 269 Subsection 8.1(3) of the Competition Tribunal Act , as that subsection read before the day on which section 266 comes into force, continues to apply after that day in respect of any proceeding referred to in subsection 8.1(1) of that Act that commenced before that day. 2010, c. 23 Consequential Amendment to An Act to promote the efficiency and adaptability of the Canadian economy by regulating certain activities that discourage ... 270 Paragraph 20(3)(d) of the An Act to promote the efficiency and adaptability of the Canadian economy by regulating certain activities that discourage reliance on electronic means of carrying out commercial activities, and to amend the Canadian Radio-television and Telecommunications Commission Act, the Competition Act, the Personal Information Protection and Electronic Documents Act and the Telecommunications Act is replaced by the following: (d) the person’s history with respect to any previous undertaking entered into under subsection 21(1) and any previous consent agreement signed under subsection 74.12(1) or 74.131(1) of the Competition Act that relates to acts or omissions that constitute conduct that is reviewable under section 74.011 of that Act; Coordinating Amendment Bill C-56 271 If Bill C-56, introduced in the 1st session of the 44th Parliament and entitled the Affordable Housing and Groceries Act (in this section referred to as the “other Act”), receives royal assent, then, on the first day on which both subsection 8(1) of the other Act and subsection 248 (3) of this Act are in force, (a) subsection 90.1(1.1) of the Competition Act , as enacted by subsection 8(1) of the other Act, is renumbered as subsection 90.1(1.01) and is repositioned accordingly if required; and (b) subsection 90.1(11) of the Competition Act is replaced by the following: Definition of competitor (11) In subsections (1) and (1.01), competitor includes a person who it is reasonable to believe would be likely to compete with respect to a product in the absence of the agreement or arrangement. Coming into Force First anniversary of royal assent 272 Section 238 , subsections 239 (1) and (4), sections 240 , 241 and 243 , subsections 244 (2) and 245 (2), section 246 , subsections 247 (1) and (2) and 248 (2), (4) and (7), sections 254 and 255 , subsection 256 (1) and sections 257 , 259 , 264 and 270 come into force on the first anniversary of the day on which this Act receives royal assent. DIVISION 7 Public Post-Secondary Educational Institutions R.S., c. B-3; 1992, c. 27, s. 2 Bankruptcy and Insolvency Act 273 The definition corporation in section 2 of the Bankruptcy and Insolvency Act is replaced by the following: corporation  means a company or legal person that is incorporated by or under an Act of Parliament or of the legislature of a province, an incorporated company, wherever incorporated, that is authorized to carry on business in Canada or has an office or property in Canada or an income trust, but does not include banks, authorized foreign banks within the meaning of section 2 of the Bank Act , insurance companies, trust companies, loan companies or prescribed public post-secondary educational institutions; ( personne morale ) R.S., c. C- 36 Companies’ Creditors Arrangement Act 274 The definition company in subsection 2(1) of the Companies’ Creditors Arrangement Act is replaced by the following: company  means any company, corporation or legal person incorporated by or under an Act of Parliament or of the legislature of a province, any incorporated company having assets or doing business in Canada, wherever incorporated, and any income trust, but does not include banks, authorized foreign banks within the meaning of section 2 of the Bank Act , telegraph companies, insurance companies, companies to which the Trust and Loan Companies Act applies and prescribed public post-secondary educational institutions; ( compagnie ) Transitional Provisions Bankruptcy and Insolvency Act 275 The definition corporation in section 2 of the Bankruptcy and Insolvency Act , as enacted by section 273 , applies only in respect of proceedings that are commenced under that Act on or after the day on which that section 273 comes into force. Companies’ Creditors Arrangement Act 276 The definition company in subsection 2(1) of the Companies’ Creditors Arrangement Act , as enacted by section 274 , applies only in respect of proceedings that are commenced under that Act on or after the day on which that section 274 comes into force. Coming into Force Second anniversary or order in council 277 Sections 273 and 274 come into force on the second anniversary of the day on which this Act receives royal assent or on an earlier day to be fixed by order of the Governor in Council. DIVISION 8 Money Laundering, Terrorist Financing, Sanctions Evasion and Other Measures SUBDIVISION A 2000, c. 17; 2001, c. 41, s. 48 Proceeds of Crime (Money Laundering) and Terrorist Financing Act Amendments to the Act 278 (1) The definition Minister in subsection 2(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act is replaced by the following: Minister  means, in relation to sections 24.1 to 39 and 39.13 to 39.39, the Minister of Public Safety and Emergency Preparedness and, in relation to any other provision of this Act, the Minister of Finance. ( ministre ) (2) Subsection 2(1) of the Act is amended by adding the following in alphabetical order: sanctions evasion offence  means an offence arising from the contravention of a restriction or prohibition established by an order or a regulation made under the United Nations Act , the Special Economic Measures Act or the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law) . ( infraction de contournement de sanctions ) (3) Subsection 2(1) of the Act is amended by adding the following in alphabetical order: acquirer  means an entity that connects a private automated banking machine to a payment card network , as defined in section 3 of the Payment Card Networks Act , to facilitate transactions. ( acquéreur ) private automated banking machine  means any automated banking machine that is not owned or operated by a bank as defined in section 2 of the Bank Act , by an association regulated by the Cooperative Credit Associations Act or by a cooperative credit society, a savings and credit union or a caisse populaire regulated by a provincial Act. ( guichet automatique privé ) 279 (1) Paragraph 5(h) of the Act is amended by striking out “or” at the end of subparagraph (iv) and by adding the following after that subparagraph: (iv.1) in relation to a private automated banking machine, acquirer services, or (2) Paragraph 5(h.1) of the Act is amended by striking out “or” at the end of subparagraph (iv) and by adding the following after that subparagraph: (iv.1) in relation to a private automated banking machine, acquirer services, or 280 Section 7 of the Act is amended by striking out “or” at the end of paragraph (a), by adding “or” at the end of paragraph (b) and by adding the following after paragraph (b): (c) the transaction is related to the commission or the attempted commission of a sanctions evasion offence. 281 Paragraph 9.5(a) of the Act is replaced by the following: (a) include with the transfer any prescribed information and, as the case may be, (i) the name, address and account number of the holder of the account from which the funds for the transfer are withdrawn, or (ii) the name, address and reference number of the person or entity that requested the transfer; 282 Section 10 of the Act is replaced by the following: Immunity 10 No criminal or civil proceedings lie against a person or an entity for making a report in good faith under section 7, 7.1 or 9, or for providing the Centre with information about suspicions of money laundering, of the financing of terrorist activities or of sanctions evasion. 283 Subsection 11.42(4) of the Act is amended by striking out “or” at the end of paragraph (b), by adding “or” at the end of paragraph (c) and by adding the following after paragraph (c): (d) there is a risk that a foreign state, a foreign entity or a person or entity referred to in section 5 may be facilitating sanctions evasion and, as a result, the Minister is of the opinion that there could be an adverse impact on the integrity of the Canadian financial system or a reputational risk to that system. 284 Subsection 11.49(3) of the Act is amended by striking out “or” at the end of paragraph (a), by adding “or” at the end of paragraph (b) and by adding the following after paragraph (b): (c) if the risk of sanctions evasion being facilitated by or in that foreign state or by means of that foreign entity or entity referred to in paragraph 5(e.1) is significant and, as a result, the Minister is of the opinion that there could be an adverse impact on the integrity of the Canadian financial system or a reputational risk to that system. 285 The Act is amended by adding the following after section 39: PART 2. 1 Reporting of Goods Interpretation Definitions 39. 01 The following definitions apply in this Part. goods  has the same meaning as in subsection 2(1) of the Customs Act . ( marchandises ) officer  has the same meaning as in subsection 2(1) of the Customs Act . ( agent ) Reporting Reporting 39.02 (1) Every person or entity referred to in subsection (3) that reports the importation or exportation of goods under section 12 or 95 of the Customs Act shall declare to an officer, in accordance with the regulations, (a) whether the goods are proceeds of crime as defined in subsection 462.3(1) of the Criminal Code or are goods relating to money laundering, to the financing of terrorist activities or to sanctions evasion; and (b) that the goods are actually being imported or exported, as the case may be. Limitation (2) A person or entity is not required to make a declaration under subsection (1) if the prescribed conditions are met in respect of the person, entity, importation or exportation, and if the person or entity satisfies an officer that those conditions have been met. Who must report (3) Goods shall be declared under subsection (1) (a) in the case of goods in the actual possession of a person arriving in or departing from Canada, or that form part of their baggage if they and their baggage are being carried on board the same conveyance, by that person or, in prescribed circumstances, by the person in charge of the conveyance; (b) in the case of goods imported into Canada by courier or as mail, by the exporter of the goods or, on receiving notice under subsection 39.03(2), by the importer; (c) in the case of goods exported from Canada by courier or as mail, by the exporter of the goods; (d) in the case of goods, other than those referred to in paragraph (a) or imported or exported as mail, that are on board a conveyance arriving in or departing from Canada, by the person in charge of the conveyance; and (e) in any other case, by the person or entity on whose behalf the goods are imported or exported. Payment for goods (4) A declaration referred to in subsection (1) must be made in respect of any financial transaction purporting to pay for goods being imported or exported in respect of which such declaration is required under that subsection. Duty to answer (5) Every person or entity referred to in subsection (3) that reports the importation or exportation of goods shall answer any questions asked by an officer in the exercise of their powers and the performance of their duties and functions under this Part. Records (6) Any person or entity that imports or exports goods or that causes or arranges for goods to be imported or exported — for sale or for any industrial, occupational, commercial, institutional or other like use, or any other use that may be prescribed — or that produces, supplies, distributes or consumes those goods for such a purpose shall keep at the person or entity’s place of business in Canada, or at any other place that the Minister may designate, any records in respect of the goods in any manner and for any period of time that may be prescribed. The person or entity shall, if an officer so requests, make the records available to the officer, within the time specified by the officer, and answer any questions asked by the officer in respect of them. Customs Act (7) Subsection 40(2) and sections 42 and 43 of the Customs Act apply, with any modifications that the circumstances require, to a person or entity that is required to keep records under subsection (6). Obligation to provide accurate information (8) Any information provided to an officer in the administration or enforcement of this Part shall be true, accurate and complete. Retention Temporary retention 39.03 (1) Subject to subsections (2) to (5), if a person or an entity indicates to an officer that they have goods to declare under section 39.02 but the declaration has not yet been completed, the officer may, after giving notice in the prescribed manner to the person or entity, retain the goods for the prescribed period. Importation or exportation by courier or as mail (2) In the case of goods imported or exported by courier or as mail, the officer shall, within the prescribed period, give the notice to the exporter if the exporter’s address is known, or, if the exporter’s address is not known, to the importer. Limitation (3) Goods may no longer be retained under subsection (1) if the officer is satisfied that the goods have been the subject of a declaration under section 39.02. Content of notice (4) The notice referred to in subsection (1) must state (a) the period for which the goods may be retained; (b) that if, within that period, the goods are declared under section 39.02, they may no longer be retained; and (c) that goods retained at the end of that period are forfeited to His Majesty in right of Canada at that time. Forfeiture (5) Goods that are retained by an officer under subsection (1) are forfeited to His Majesty in right of Canada at the end of the period referred to in that subsection. Searches Search of person 39.04 (1) If an officer suspects on reasonable grounds that they have secreted on or about their person goods that have not been declared in accordance with section 39.02 or that are proceeds of crime as defined in subsection 462.3(1) of the Criminal Code or are goods relating to money laundering, to the financing of terrorist activities or to sanctions evasion, the officer may search (a) any person who has arrived in Canada, within a reasonable time after their arrival in Canada; (b) any person who is about to leave Canada, at any time before their departure; or (c) any person who has had access to an area designated for use by persons about to leave Canada and who leaves the area but does not leave Canada, within a reasonable time after they leave the area. Person taken before senior officer (2) An officer who is about to search a person under this section shall, on the person’s request, without delay take the person before the senior officer at the place where the search is to take place. Discharge or search (3) A senior officer before whom a person is taken under subsection (2) shall, if the senior officer believes there are no reasonable grounds for suspicion under subsection (1), discharge the person or, if the senior officer believes otherwise, direct that the person be searched. Search by same sex (4) No person shall be searched under this section by a person who is not of the same sex, and if there is no officer of the same sex at the place where the search is to take place, an officer may authorize any suitable person of the same sex to perform the search. Customs Act 39. 05 Paragraphs 99(1)(a) to (c.1), (e) and (f), subsection 99(4) and paragraph 99.1(2)(b) of the Customs Act apply, with any modifications that the circumstances require, to goods that must be declared under section 39.02. Seizures Seizure and forfeiture 39.06 (1) If an officer has reasonable grounds to believe that goods are proceeds of crime as defined in subsection 462.3(1) of the Criminal Code or are related to money laundering, the financing of terrorist activities or sanctions evasion, the officer may seize as forfeit the goods. Notice of seizure (2) An officer who seizes goods under subsection (1) shall (a) if the goods were not imported or exported as mail, give the person from whom they were seized written notice of the seizure and the right to review and appeal set out in sections 39.14 and 39.21; (b) if the goods were imported or exported as mail and the address of the exporter is known, give the exporter written notice of the seizure and the right to review and appeal set out in sections 39.14 and 39.21; and (c) take the measures that are reasonable in the circumstances to give notice of the seizure to any person or entity that the officer believes on reasonable grounds is entitled to make an application under section 39.23 in respect of the goods. Service of notice (3) The service of a notice under paragraph (2)(b) is sufficient if it is sent by registered mail addressed to the exporter. Power to call in aid 39. 07 An officer may call on other persons to assist the officer in exercising any power of search, seizure or retention that the officer is authorized under this Part to exercise, and any person so called on is authorized to exercise that power. Recording of reasons for decision 39. 08 If an officer decides to exercise powers under subsection 39.06(1), the officer shall record in writing reasons for the decision. Report to President 39. 09 If the goods have been seized under section 39.06, the officer who seized them shall without delay report the circumstances of the seizure to the President. Transfer to the Minister of Public Works and Government Services Forfeiture under subsection 39.03(5) 39.1 (1) An officer who retains goods forfeited under subsection 39.03(5) shall send the goods to the Minister of Public Works and Government Services. Seizure (2) An officer who seizes goods shall send the goods to the Minister of Public Works and Government Services. Forfeiture Time of forfeiture 39. 11 Subject to sections 39.14 to 39.22, goods seized under subsection 39.06(1) are forfeited to His Majesty in right of Canada from the time of the contravention in respect of which they were seized, and no act or proceeding after the forfeiture is necessary to effect the forfeiture. Review and Appeal Review of forfeiture 39. 12 The forfeiture of goods seized under this Part is final and is not subject to review and is not to be set aside or otherwise dealt with, except to the extent and in the manner provided by sections 39.13 and 39.14. Corrective measures 39. 13 The Minister, or any officer delegated by the President for the purposes of this section, may, within 90 days after a seizure made under subsection 39.06(1), cancel the seizure if the Minister is satisfied that there was no contravention. Request for Minister’s decision 39. 14 A person or entity from which goods were seized under subsection 39.06(1), or the lawful owner of the goods, may, within 90 days after the date of the seizure, request a decision of the Minister as to whether the goods are proceeds of crime as defined in subsection 462.3(1) of the Criminal Code or are related to money laundering, to the financing of terrorist activities or to sanctions evasion by giving notice to the Minister in writing or by any other means satisfactory to the Minister. Extension of time by Minister 39.15 (1) If no request is made under section 39.14 within the period provided in that section, the person, entity or lawful owner referred to in that section may apply to the Minister in writing or by any other means satisfactory to the Minister for an extension of the time for making the request. Content (2) An application shall set out the reasons why the request was not made on time. Burden of proof (3) The burden of proof that an application has been made under subsection (1) lies on the person, entity or lawful owner claiming to have made it. Notice of decision (4) The Minister shall, without delay after making a decision in respect of an application, notify the applicant in writing of the decision. Conditions for granting application (5) The application is not to be granted unless (a) it is made within one year after the end of the period provided in section 39.14; and (b) the applicant demonstrates that (i) within the period provided in section 39.14, they were unable to act or to instruct another person to act in their name or had a bona fide intention to request a decision, (ii) it would be just and equitable to grant the application, and (iii) the application was made as soon as circumstances permitted. Extension of time by Federal Court 39.16 (1) The person, entity or lawful owner referred to in section 39.14 may apply to the Federal Court to have their application under section 39.15 granted (a) within the period of 90 days after the Minister dismisses that application, if it is dismissed; or (b) after 90 days have expired after that application was made, if the Minister has not notified the person, entity or lawful owner of a decision made in respect of it. Application process (2) The application shall be made by filing in the Federal Court a copy of the application made under section 39.15, and any notice given in respect of it. The applicant shall notify the Minister that they have filed the application immediately after having filed it. Powers of the Court (3) The Court may grant or dismiss the application and, if it grants the application, may impose any terms that it considers just or order that the request made under section 39.14 be deemed to have been made on the date the order was made. Conditions for granting application (4) The application is not to be granted unless (a) the application under section 39.15 was made within one year after the end of the period provided in section 39.14; and (b) the applicant demonstrates that (i) within the period provided in section 39.14, they were unable to act or to instruct another person to act in their name or had a bona fide intention to request a decision, (ii) it would be just and equitable to grant the application, and (iii) the application was made as soon as circumstances permitted. Notice of President 39.17 (1) If a request for a decision is a made under section 39.14, the President shall without delay serve on the person, entity or lawful owner who requested it written notice of the circumstances of the seizure in respect of which the decision is requested. Evidence (2) The person, entity or lawful owner may, within 30 days after the notice is served, furnish any evidence in the matter that they desire to furnish. Decision of Minister 39.18 (1) Within 90 days after the expiry of the period referred to in subsection 39.17(2), the Minister shall decide whether the goods are proceeds of crime as defined in subsection 462.3(1) of the Criminal Code or are related to money laundering, to the financing of terrorist activities or to sanctions evasion. Deferral of decision (2) If charges are laid with respect to a money laundering offence, a terrorist activity financing offence or a sanctions evasion offence in respect of the goods seized, the Minister may defer making a decision but shall make it in any case no later than 30 days after the conclusion of all court proceedings in respect of those charges. Notice of decision (3) The Minister shall, without delay after making a decision, serve on the person, entity or lawful owner who requested it a written notice of the decision together with the reasons for it. Return of goods 39. 19 If the Minister decides that the goods are not proceeds of crime as defined in subsection 462.3(1) of the Criminal Code and are not related to money laundering, to the financing of terrorist activities or to sanctions evasion, the Minister of Public Works and Government Services shall, on being informed of the Minister’s decision, return the goods or an amount of money equal to their value at the time of the seizure, as the case may be. Confirmation of forfeiture 39. 2 If the Minister decides that the goods are proceeds of crime as defined in subsection 462.3(1) of the Criminal Code or are related to money laundering, to the financing of terrorist activities or to sanctions evasion, the Minister may, subject to the terms and conditions that the Minister may determine, subject to any order made under section 39.24 or 39.25, confirm that the goods are forfeited to His Majesty in right of Canada. Appeal to Federal Court 39.21 (1) A person, entity or lawful owner who makes a request under section 39.14 for a decision of the Minister may, within 90 days after being notified of the decision, appeal the decision by way of an action in the Federal Court in which they are the plaintiff and the Minister is the defendant. Ordinary action (2) The Federal Courts Act and the rules made under that Act that apply to ordinary actions apply to actions instituted under subsection (1) except as varied by special rules made in respect of such actions. Delivery after final order (3) The Minister of Public Works and Government Services shall give effect to the decision of the Court on being informed of it. Limit on amount paid (4) If the goods were sold or otherwise disposed of under the Seized Property Management Act , the total amount that can be paid under subsection (3) shall not exceed the proceeds of the sale or disposition, if any, less any costs incurred by His Majesty in right of Canada in respect of the goods. Service of notices 39. 22 The service of the President’s notice under section 39.17 or the notice of the Minister’s decision under section 39.18 is sufficient if it is sent by registered mail addressed to the person or entity on which it is to be served at their latest known address. Third Party Claims Interest as owner 39.23 (1) If goods have been seized as forfeit under this Part, any person or entity, other than the person or entity in whose possession the goods were when seized, that claims in respect of the goods an interest as owner or, in Quebec, a right as owner or trustee may, within 90 days after the seizure, apply by notice in writing to the court for an order under section 39.24. Date of hearing (2) A judge of the court to which an application is made under this section shall fix a day, not less than 30 days after the date of the filing of the application, for the hearing. Notice to President (3) The applicant shall serve notice of the application and of the hearing on the President, or an officer delegated by the President for the purpose of this section, not later than 15 days after a day is fixed under subsection (2) for the hearing of the application. Service of notice (4) The service of a notice under subsection (3) is sufficient if it is sent by registered mail addressed to the President. Definition of court (5) In this section and sections 39.24 and 39.25, court means (a) in the Province of Ontario, the Superior Court of Justice; (b) in the Province of Quebec, the Superior Court; (c) in the Provinces of Nova Scotia, British Columbia, Prince Edward Island and Newfoundland and Labrador, in Yukon and in the Northwest Territories, the Supreme Court; (d) in the Provinces of New Brunswick, Manitoba, Saskatchewan and Alberta, the Court of King’s Bench; and (e) in Nunavut, the Nunavut Court of Justice. Order 39. 24 On the hearing of an application made under subsection 39.23(1), the applicant is entitled to an order declaring that their interest or right is not affected by the seizure and declaring the nature and extent of their interest or right at the time of the contravention that resulted in the seizure if the court is satisfied (a) that the applicant acquired the interest or right in good faith before the contravention; (b) that the applicant is innocent of any complicity in the contravention and of any collusion in relation to it; and (c) that the applicant exercised all reasonable care to ensure that any person permitted to obtain possession of the goods seized would declare them in accordance with section 39.02. Appeal 39.25 (1) A person or entity that makes an application under section 39.23 or His Majesty in right of Canada may appeal to the court of appeal from an order made under section 39.24 and the appeal shall be asserted, heard and decided according to the ordinary procedure governing appeals to the court of appeal from orders or judgments of a court. Definition of court of appeal (2) In this section, court of appeal means, in the province in which an order referred to in subsection (1) is made, the court of appeal for that province as defined in section 2 of the Criminal Code . Delivery after final order 39.26 (1) The Minister of Public Works and Government Services shall, after the forfeiture of goods has become final and on being informed by the President that a person or entity has obtained a final order under section 39.24 or 39.25 in respect of the goods, give to the person or entity (a) the goods; or (b) an amount calculated on the basis of the interest of the applicant in the goods at the time of the contravention in respect of which they were seized, as declared in the order. Limit on amount paid (2) The total amount paid under paragraph (1)(b) shall, if the goods were sold or otherwise disposed of under the Seized Property Management Act , not exceed the proceeds of the sale or disposition, if any, less any costs incurred by His Majesty in right of Canada in respect of the goods. Disclosure and Use of Information Prohibition 39.27 (1) Subject to this section and subsection 12(1) of the Privacy Act , no official shall disclose the following: (a) information set out in a declaration made under section 39.02, whether or not it is completed; (b) any other information obtained for the purposes of this Part; or (c) information prepared from information referred to in paragraph (a) or (b). Use of information (2) An officer may use information referred to in subsection (1) if the officer has reasonable grounds to suspect that the information is relevant to determining whether a person is a person described in sections 34 to 42 of the Immigration and Refugee Protection Act or is relevant to an offence under any of sections 91, 117 to 119, 126 or 127 of that Act. Disclosure of relevant information (3) If an officer has reasonable grounds to suspect that information referred to in subsection (1) would be relevant to investigating or prosecuting a money laundering offence, a terrorist activity financing offence or a sanctions evasion offence, the officer may disclose the information to (a) the appropriate police force; (b) the Canada Revenue Agency, if the officer also has reasonable grounds to suspect that the information would be relevant to investigating or prosecuting an offence of obtaining or attempting to obtain a rebate, refund or credit to which a person or entity is not entitled, or of evading or attempting to evade paying taxes or duties imposed under an Act of Parliament administered by the Minister of National Revenue; (c) the Agence du revenu du Québec, if the officer also has reasonable grounds to suspect that the information would be relevant to investigating or prosecuting an offence of obtaining or attempting to obtain a rebate, refund or credit to which a person or entity is not entitled, or of evading or attempting to evade paying taxes imposed under an Act of Parliament or of the legislature of Quebec administered by the Minister of Revenue of Quebec; (d) the Canada Revenue Agency, if the officer also has reasonable grounds to suspect that the information is relevant to determining (i) whether a registered charity , as defined in subsection 248(1) of the Income Tax Act , has ceased to comply with the requirements of that Act for its registration as such, (ii) whether a person or entity that the officer has reasonable grounds to suspect has applied to be a registered charity , as defined in subsection 248(1) of the Income Tax Act , is eligible to be registered as such, or (iii) whether a person or entity that the officer has reasonable grounds to suspect may apply to be a registered charity , as defined in subsection 248(1) of the Income Tax Act , (A) has made or will make available any resources, directly or indirectly, to a listed entity as defined in subsection 83.01(1) of the Criminal Code , (B) has made available any resources, directly or indirectly, to an entity as defined in subsection 83.01(1) of the Criminal Code that was at that time, and continues to be, engaged in terrorist activities as defined in that subsection or activities in support of them, or (C) has made or will make available any resources, directly or indirectly, to an entity as defined in subsection 83.01(1) of the Criminal Code that engages or will engage in terrorist activities as defined in that subsection or activities in support of them; (e) the Communications Security Establishment, if the officer also determines that the information is relevant to the foreign intelligence aspect of the Communications Security Establishment’s mandate, referred to in section 16 of the Communications Security Establishment Act ; (f) the Competition Bureau, if the officer also has reasonable grounds to suspect that the information would be relevant to investigating or prosecuting an offence under the Competition Act , the Consumer Packaging and Labelling Act , the Precious Metals Marking Act or the Textile Labelling Act or an attempt to commit such an offence; (g) an agency or body that administers the securities legislation of a province, if the officer also has reasonable grounds to suspect that the information would be relevant to investigating or prosecuting an offence under that legislation; (h) the Minister of Foreign Affairs or a Minister designated under subsection 6(2) of the Special Economic Measures Act , if the officer also determines that the information is relevant to the making, administration or enforcement of an order or regulation referred to in subsection 4(1) of that Act; (i) the Minister of Foreign Affairs or a Minister designated under subsection 2.1(2) of the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law) , if the officer also determines that the information is relevant to the making, administration or enforcement of an order or regulation referred to in subsection 4(1) of that Act; (j) the Department of the Environment, if the officer also has reasonable grounds to suspect that the information would be relevant to investigating or prosecuting an offence under an Act administered by the Minister of the Environment or an attempt to commit such an offence; and (k) the Department of Fisheries and Oceans, if the officer also has reasonable grounds to suspect that the information would be relevant to investigating or prosecuting an offence under an Act administered by the Minister of Fisheries and Oceans or an attempt to commit such an offence. Disclosure — threats to security of Canada (4) If an officer has reasonable grounds to suspect that information referred to in subsection (1) would be relevant to threats to the security of Canada, the officer may disclose the information to (a) the Canadian Security Intelligence Service; (b) the appropriate police force, if the officer also has reasonable grounds to suspect that the information is relevant to investigating or prosecuting an offence under Canadian law that the officer has reasonable grounds to suspect arises out of conduct constituting such a threat; (c) the Department of National Defence and the Canadian Forces, if the officer also has reasonable grounds to suspect that the information is relevant to the conduct of the Department’s or the Canadian Forces’ investigative activities related to such a threat; and (d) the Office of the Superintendent of Financial Institutions, if the officer also has reasonable grounds to suspect that the information is relevant to the exercise of the powers or the performance of the duties and functions of the Superintendent under the Office of the Superintendent of Financial Institutions Act . Disclosure of information to Centre (5) An officer may disclose to the Centre information referred to in subsection (1) if the officer has reasonable grounds to suspect that it would be of assistance to the Centre in the detection, prevention or deterrence of money laundering, of the financing of terrorist activities or of sanctions evasion. Recording of reasons for decision (6) If an officer decides to disclose information under subsection (3), (4) or (5), the officer shall record in writing the reasons for the decision. Powers, duties and functions (7) An official may disclose information referred to in subsection (1) for the purpose of exercising powers or performing duties and functions under this Part. Immunity from compulsory processes (8) Subject to section 36 of the Access to Information Act and sections 34 and 37 of the Privacy Act , an official is required to comply with a subpoena, an order for production of documents, a summons or any other compulsory process only if it is issued in the course of (a) criminal proceedings under an Act of Parliament that have been commenced by the laying of an information or the preferring of an indictment; or (b) any legal proceedings that relate to the administration or enforcement of this Part. Definition of official (9) In this section and section 39.28, official means a person who obtained or who has or had access to information referred to in subsection (1) in the course of exercising powers or performing duties and functions under this Part. Use of information 39. 28 No official shall use information referred to in subsection 39.27(1) for any purpose other than exercising powers or performing duties and functions under this Part or for the purposes of the Special Economic Measures Act , the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law) , the Customs Act or any other law relating to customs. Feedback, research and public education 39.29 (1) The Canada Border Services Agency may (a) inform persons and entities that have provided a declaration under section 39.02 about measures that have been taken with respect to those declarations; (b) conduct research into trends and developments in the area of money laundering, the financing of terrorist activities, sanctions evasion and the financing of threats to the security of Canada relating to the importation and exportation of goods and into improved ways of detecting, preventing and deterring money laundering, the financing of terrorist activities, sanctions evasion and the financing of threats to the security of Canada; and (c) undertake measures to inform the public, any persons and entities referred to in section 39.02, any authorities engaged in the investigation and prosecution of money laundering offences, terrorist activity financing offences and sanctions evasion offences and any others with respect to (i) their obligations under this Part, (ii) the nature and extent of money laundering inside and outside Canada relating to the importation and exportation of goods, (iii) the nature and extent of the financing of terrorist activities inside and outside Canada relating to the importation and exportation of goods, (iv) the nature and extent of the financing, inside and outside Canada, of threats to the security of Canada relating to the importation and exportation of goods, (v) the nature and extent of sanctions evasion inside and outside Canada relating to the importation and exportation of goods, and (vi) measures that have been or might be taken to detect, prevent and deter money laundering — as well as the financing of terrorist activities, sanctions evasion and the financing of threats to the security of Canada — inside or outside Canada, and the effectiveness of those measures. Limitation (2) The Canada Border Services Agency shall not disclose under subsection (1) any information that would directly or indirectly identify any of the following persons or entities: (a) a person who provided a report or information to the Canada Border Services Agency; (b) a Canadian citizen or a permanent resident as defined in subsection 2(1) of the Immigration and Refugee Protection Act about whom a report or information was provided; (c) a person in Canada or an entity that has a place of business in Canada about whom a report or information was provided. Agreements for Exchange of Information Agreements with foreign states 39. 3 The Minister, with the consent of the Minister designated for the purposes of section 42, may enter into an agreement or arrangement in writing with the government of a foreign state, or an institution or agency of that state, that has reporting requirements similar to those set out in this Part, whereby (a) information set out in a declaration made under section 39.02, and any other related information, in respect of goods imported into Canada from that state will be provided to a department, institution or agency of that state that has powers and duties similar to those of the Canada Border Services Agency in respect of the reporting of goods; and (b) information contained in reports, and any other related information, in respect of goods imported into that state from Canada will be provided to the Canada Border Services Agency. Agreements with foreign states 39. 31 The Minister, with the consent of the Minister designated for the purpose of section 42, may enter into an agreement or arrangement in writing with the government of a foreign state, or an institution or agency of that state, that has powers and duties similar to those of the Canada Border Services Agency, whereby the Canada Border Services Agency may, if it has reasonable grounds to believe that information collected under this Part would be relevant to investigating or prosecuting a money laundering offence, a terrorist activity financing offence or a sanctions evasion offence, provide that information to that government, institution or agency. Delegation Minister’s duties 39.32 (1) The Minister may authorize an officer or a class of officers to exercise powers or perform duties of the Minister, including any judicial or quasi-judicial powers or duties of the Minister, under this Part. President’s duties (2) The President may authorize an officer or a class of officers to exercise powers or perform duties of the President under this Part. Forms Declaration 39. 33 The Minister may include on any form a declaration, to be signed by the person completing the form, declaring that the information given by that person on the form is true, accurate and complete. Electronic Administration and Enforcement Electronic administration and enforcement 39.34 (1) This Part may be administered and enforced using electronic means. Any person on whom powers, duties or functions are conferred under this Part may exercise any of those powers or perform any of those duties or functions using the electronic means made available or specified by the Minister. Authorization (2) Any person who has been authorized to exercise any power or perform any duty or function conferred on a person referred to in subsection (1) under this Part may do so using the electronic means that are made available or specified by the Minister. Provision of information 39. 35 For the purposes of sections 39.36 to 39.38, providing information includes providing a signature and serving, filing or otherwise providing a record or document. Conditions for electronic version 39. 36 A requirement under this Part to provide information — in any form or manner or by any means — is satisfied by providing the electronic version of the information if (a) the electronic version is provided by the electronic means, including an electronic system, that are made available or specified by the Minister, if any; and (b) any prescribed requirements with respect to electronic communications or electronic means have been met. Deemed timing of receipt 39. 37 Any information provided by electronic means, including an electronic system, in accordance with section 39.34 or 39.36, is deemed to be received (a) if the regulations provide for a day, on that day; (b) if the regulations provide for a day and time, on that day and at that time; or (c) if the regulations do not provide for a day or a day and a time, on the day and at the time that the information is sent. Regulations 39.38 (1) The Governor in Council may, on the recommendation of the Minister, make regulations in respect of electronic communications and electronic means, including electronic systems, or any other technology to be used in the administration or enforcement of this Part, including regulations respecting (a) the provision of information for any purpose under this Part in electronic or other form; (b) the payment of amounts under this Part by electronic instructions; and (c) the manner in which and the extent to which any provision of this Part, or its regulations, applies to the electronic communications or electronic means, including electronic systems, and adapting any such provision for the purpose of applying it. Classes (2) Regulations made for the purpose of section 39.36 may establish classes and distinguish among those classes. Administrative Monetary Penalties Regulations 39.39 (1) The Governor in Council may make regulations establishing an administrative monetary penalties scheme for the purpose of promoting compliance with this Part, including regulations (a) designating as a violation the contravention of a specified provision of this Part; (b) classifying each violation or series of violations; (c) respecting the penalties that may be imposed for a violation, including in relation to (i) the amount, or range of amounts, of the penalties that may be imposed on persons or entities or classes of persons or entities, (ii) the factors to be taken into account in imposing a penalty, (iii) the payment of penalties that have been imposed, and (iv) the recovery, as a debt, of unpaid penalties and any additional penalty to be paid in respect of those unpaid penalties; (d) respecting the powers, duties and functions of the Canada Border Services Agency and of any person or class of persons who may exercise powers or perform duties or functions with respect to the scheme, including the designation of such persons or classes of persons by the President of the Agency; (e) respecting the proceedings in respect of a violation, including in relation to (i) commencing the proceedings, (ii) the defences that may be available in respect of a violation, and (iii) the circumstances in which the proceedings may be brought to an end; and (f) respecting reviews or appeals of any orders or decisions in the proceedings. Violation or offence (2) If an act or omission may be proceeded with as a violation or as an offence, proceeding with it in one manner precludes proceeding with it in the other. 286 (1) Paragraph 40(b) of the Act is replaced by the following: (b) collects, analyses, assesses and discloses information in order to assist in the detection, prevention and deterrence of money laundering, of the financing of terrorist activities and of sanctions evasion, and in order to assist the Minister in carrying out the Minister’s powers and duties under Part 1.1; (2) Paragraph 40(d) of the Act is replaced by the following: (d) operates to enhance public awareness and understanding of matters related to money laundering, the financing of terrorist activities and sanctions evasion; and 287 (1) Paragraph 54(1)(a) of the Act is replaced by the following: (a) shall receive reports made under section 7, 7.1, 9, 12 or 20, or in accordance with a directive issued under Part 1.1, incomplete reports sent under subsection 14(5), reports referred to in section 9.1, information provided to the Centre by any agency of another country that has powers and duties similar to those of the Centre, information provided to the Centre by law enforcement agencies or government institutions or agencies, and other information voluntarily provided to the Centre about suspicions of money laundering, of the financing of terrorist activities or of sanctions evasion; (2) The portion of paragraph 54(1)(b) of the Act before subparagraph (i) is replaced by the following: (b) may collect information that the Centre considers relevant to money laundering activities, the financing of terrorist activities and activities relating to sanctions evasion that (3) Subsection 54(2) of the Act is replaced by the following: Destruction of certain information (2) The Centre shall destroy any information contained in a document, whether in written form or in any other form, that it receives that purports to be a report made under section 7, 7.1, 9 or 12, made in accordance with a directive issued under Part 1.1, sent under subsection 14(5) or referred to in section 9.1, and that it determines, in the normal course of its activities, relates to a financial transaction or circumstance that is not required to be reported to the Centre under this Act, and shall destroy any information voluntarily provided to the Centre by the public that it determines, in the normal course of its activities, is not about suspicions of money laundering, of the financing of terrorist activities or of sanctions evasion. The Centre shall destroy the information within a reasonable time after the determination is made. 288 (1) Paragraph 55(1)(d) of the Act is replaced by the following: (d) information voluntarily provided to the Centre about suspicions of money laundering, of the financing of terrorist activities or of sanctions evasion; (2) The portion of subsection 55(3) of the Act before paragraph (a) is replaced by the following: Disclosure of designated information (3) If the Centre, on the basis of its analysis and assessment under paragraph 54(1)(c), has reasonable grounds to suspect that designated information would be relevant to investigating or prosecuting a money laundering offence, a terrorist activity financing offence or a sanctions evasion offence, the Centre shall disclose the information to (3) Clause 55(3)(c)(iii)(C) of the French version of the Act is replaced by the following: (C) a mis ou mettra, directement ou indirectement, des ressources à la disposition d’une entité , au sens de ce paragraphe 83.01(1), qui se livre ou se livrera à des activités terroristes au sens de ce paragraphe ou à des activités visant à les appuyer; (4) Subsection 55(3) of the Act is amended by striking out “and” at the end of paragraph (h) and by adding the following after paragraph (i): (j) the Department of the Environment, if the Centre also has reasonable grounds to suspect that the information would be relevant to investigating or prosecuting an offence under an Act administered by the Minister of the Environment or an attempt to commit such an offence; and (k) the Department of Fisheries and Oceans, if the Centre also has reasonable grounds to suspect that the information would be relevant to investigating or prosecuting an offence under an Act an Act administered by the Minister of Fisheries and Oceans or an attempt to commit such an offence. (5) Subsection 55(6.1) of the Act is replaced by the following: Publication (6.1) After a person has been determined by a court to be guilty of a money laundering offence, a terrorist activity financing offence or a sanctions evasion offence, or has been determined by a foreign court to be guilty of an offence that is substantially similar to any of those offences, whether on acceptance of a plea of guilty or on a finding of guilt, the Centre may, if it has disclosed designated information under subsection (3) with respect to the investigation or prosecution of the offence, make public the fact that it made such a disclosure. (6) The portion of subsection 55(7) of the Act before paragraph (a.1) is replaced by the following: Definition of designated information (7) For the purposes of subsection (3), designated information means, in respect of a report made under section 7.1 or of a financial transaction, an attempted financial transaction or an importation or exportation of currency or monetary instruments, as the case may be, (a) the name of any person or entity that is identified in the report or that is involved in the transaction, attempted transaction, importation or exportation or of any person or entity acting on their behalf; (7) Paragraph 55(7)(n) of the Act is replaced by the following: (n) indicators of a money laundering offence, a terrorist activity financing offence or a sanctions evasion offence related to the transaction, attempted transaction, importation or exportation; (8) Paragraph 55(7)(q) of the Act is replaced by the following: (q) information about the transaction, attempted transaction, importation or exportation, received by the Centre from an institution or agency under an agreement or arrangement referred to in section 56, that constitutes the institution’s or agency’s reasonable grounds to suspect that the information would be relevant to investigating or prosecuting a money laundering offence, a terrorist activity financing offence or a sanctions evasion offence, or an offence that is substantially similar to any of those offences; (9) Subsection 55(7) of the Act is amended by striking out “and” at the end of paragraph (s), by adding “and” at the end of paragraph (t) and by adding the following after paragraph (t): (u) any other information set out in a report made under section 7.1. 289 (1) The portion of subsection 55.1(3) of the Act before paragraph (a.1) is replaced by the following: Definition of designated information (3) For the purposes of subsection (1), designated information means, in respect of a report made under section 7.1, a financial transaction, an attempted financial transaction or an importation or exportation of currency or monetary instruments, as the case may be, (a) the name of any person or entity that is identified in the report or that is involved in the transaction, attempted transaction, importation or exportation or of any person or entity acting on their behalf; (2) Paragraph 55.1(3)(n) of the Act is replaced by the following: (n) indicators of a money laundering offence, a terrorist activity financing offence, a sanctions evasion offence or a threat to the security of Canada related to the transaction, attempted transaction, importation or exportation; (3) Paragraph 55.1(3)(q) of the Act is replaced by the following: (q) information about the transaction, attempted transaction, importation or exportation, received by the Centre from an institution or agency under an agreement or arrangement referred to in section 56, that constitutes the institution’s or agency’s reasonable grounds to suspect that the information would be relevant to investigating or prosecuting a money laundering offence, a terrorist activity financing offence or a sanctions evasion offence, or an offence that is substantially similar to any of those offences; (4) Subsection 55.1(3) of the Act is amended by striking out “and” at the end of paragraph (s), by adding “and” at the end of paragraph (t) and by adding the following after paragraph (t): (u) any other information set out in a report made under section 7.1. 290 (1) Subsections 56(1) and (2) of the Act are replaced by the following: Agreements and arrangements 56 (1) The Minister may enter into an agreement or arrangement, in writing, with the government of a foreign state or an international organization regarding the exchange, between the Centre and any institution or agency of that state or organization that has powers and duties similar to those of the Centre, of information that the Centre, institution or agency has reasonable grounds to suspect would be relevant to investigating or prosecuting a money laundering offence, a terrorist activity financing offence or a sanctions evasion offence, or an offence that is substantially similar to any of those offences. Agreements and arrangements — Centre (2) The Centre may, with the approval of the Minister, enter into an agreement or arrangement, in writing, with an institution or agency of a foreign state that has powers and duties similar to those of the Centre, regarding the exchange, between the Centre and the institution or agency, of information that the Centre, institution or agency has reasonable grounds to suspect would be relevant to investigating or prosecuting a money laundering offence, a terrorist activity financing offence or a sanctions evasion offence, or an offence that is substantially similar to any of those offences. (2) Paragraph 56(3)(a) of the Act is replaced by the following: (a) restrict the use of information to purposes relevant to investigating or prosecuting a money laundering offence, a terrorist activity financing offence or a sanctions evasion offence, or an offence that is substantially similar to any of those offences; and 291 (1) Paragraph 56.1(1)(a) of the Act is replaced by the following: (a) the Centre has reasonable grounds to suspect that the information would be relevant to the investigation or prosecution of a money laundering offence, a terrorist activity financing offence or a sanctions evasion offence, or an offence that is substantially similar to any of those offences; and (2) Paragraph 56.1(2)(a) of the Act is replaced by the following: (a) the Centre has reasonable grounds to suspect that the information would be relevant to the investigation or prosecution of a money laundering offence, a terrorist activity financing offence or a sanctions evasion offence, or an offence that is substantially similar to any of those offences; and (3) Subsection 56.1(4.1) of the Act is replaced by the following: Publication (4.1) After a person has been determined by a court to be guilty of a money laundering offence, a terrorist activity financing offence or a sanctions evasion offence, or has been determined by a foreign court to be guilty of an offence that is substantially similar to any of those offences, whether on acceptance of a plea of guilty or on a finding of guilt, the Centre may, if it has disclosed designated information under subsection (1) or (2) with respect to the investigation or prosecution of the offence, make public the fact that it made such a disclosure. (4) The portion of subsection 56.1(5) of the Act before paragraph (a.1) is replaced by the following: Definition of designated information (5) For the purposes of this section, designated information means, in respect of a report made under section 7.1 or of a financial transaction, an attempted financial transaction or an importation or exportation of currency or monetary instruments, as the case may be (a) the name of any person or entity that is identified in the report or that is involved in the transaction, attempted transaction, importation or exportation or of any person or entity acting on their behalf; (5) Paragraph 56.1(5)(n) of the Act is replaced by the following: (n) indicators of a money laundering offence, a terrorist activity financing offence or a sanctions evasion offence related to the transaction, attempted transaction, importation or exportation; (6) Subsection 56.1(5) of the Act is amended by striking out “and” at the end of paragraph (r), by adding “and” at the end of paragraph (s) and by adding the following after paragraph (s): (t) any other information set out in a report made under section 7.1. 292 (1) Paragraph 58(1)(b) of the Act is replaced by the following: (b) conduct research into trends and developments in the area of money laundering, the financing of terrorist activities, sanctions evasion and the financing of threats to the security of Canada and into improved ways of detecting, preventing and deterring money laundering, the financing of terrorist activities, sanctions evasion and the financing of threats to the security of Canada; and (2) The portion of paragraph 58(1)(c) of the Act before subparagraph (i) is replaced by the following: (c) undertake measures to inform the public, persons and entities referred to in section 5, authorities engaged in the investigation and prosecution of money laundering offences, terrorist activity financing offences and sanctions evasion offences, and others, with respect to (3) Paragraph 58(1)(c) of the Act is amended by striking out “and” at the end of subparagraph (ii.2) and by adding the following after that subparagraph: (ii.3) the nature and extent of sanctions evasion inside and outside Canada, and (4) Subsection 58(2) of the Act is replaced by the following: Limitation (2) The Centre shall not disclose under subsection (1) any information that would directly or indirectly identify any of the following persons or entities: (a) a person who provided a report or information to the Centre; (b) a Canadian citizen or a permanent resident as defined in subsection 2(1) of the Immigration and Refugee Protection Act about whom a report or information was provided; (c) a person in Canada or an entity that has a place of business in Canada about whom a report or information was provided. 293 Subsection 59(1) of the Act is replaced by the following: Immunity from compulsory processes 59 (1) Subject to section 36 of the Access to Information Act and sections 34 and 37 of the Privacy Act , the Centre, and any person who has obtained or who has or had access to any information or documents in the course of exercising powers or performing duties and functions under this Act, other than Parts 2 and 2.1, is required to comply with a subpoena, a summons, an order for production of documents, or any other compulsory process only if it is issued in the course of court proceedings in respect of a money laundering offence, a terrorist activity financing offence, a sanctions evasion offence or an offence under this Act in respect of which an information has been laid or an indictment preferred or, in the case of an order for production of documents, if it is issued under section 60, 60.1 or 60.3. 294 (1) Subsection 60(2) of the Act is replaced by the following: Purpose of application (2) The Attorney General may, for the purposes of an investigation in respect of a money laundering offence, a terrorist activity financing offence or a sanctions evasion offence, make an application under subsection (3) for an order for disclosure of information. (2) Paragraph 60(3)(d) of the Act is replaced by the following: (d) the facts relied on to justify the belief, on reasonable grounds, that the person or entity referred to in paragraph (b) has committed or benefited from the commission of a money laundering offence, a terrorist activity financing offence or a sanctions evasion offence and that the information or documents referred to in paragraph (c) are likely to be of substantial value, whether alone or together with other material, to an investigation in respect of any of those offences; (3) Paragraph 60(8)(a) of the Act is replaced by the following: (a) the Director is prohibited from disclosing the information or document by any bilateral or international treaty, convention or other agreement to which the Government of Canada is a signatory respecting the sharing of information related to a money laundering offence, a terrorist activity financing offence or a sanctions evasion offence or an offence that is substantially similar to any of those offences; 295 Paragraph 60.1(7)(a) of the Act is replaced by the following: (a) the Director is prohibited from disclosing the information or document by any bilateral or international treaty, convention or other agreement to which the Government of Canada is a signatory respecting the sharing of information related to a money laundering offence, a terrorist activity financing offence or a sanctions evasion offence or an offence that is substantially similar to any of those offences; 296 Paragraph 73(1)(k) of the Act is replaced by the following: (k) respecting the reports referred to in section 12(1) and the declarations referred to in section 39.02; and 297 The portion of subsection 74(1) of the Act before paragraph (a) is replaced by the following: General offences 74 (1) Every person or entity that knowingly contravenes any of sections 6, 6.1 and 9.1 to 9.31, subsection 9.4(2), sections 9.5 to 9.7, 11.1, 11.43, 11.44 and 11.6, subsections 12(1) and (4) and 36(1), section 37, subsections 39.02(1), (4), (5) and (8) and 39.27(1), section 39.28, subsections 55(1) and (2), section 57 and subsections 62(2), 63.1(2) and 64(3) or the regulations is guilty of an offence and liable 298 Paragraph 77.3(2)(a) of the Act is replaced by the following: (a) cause a person or entity referred to in section 5 to be in receipt of cash or virtual currency or involve the initiation of an international electronic funds transfer or the making of a disbursement, in any of the following transactions: (i) the redemption of chips, tokens or plaques, (ii) a front cash withdrawal, (iii) a safekeeping withdrawal, (iv) an advance on any form of credit, including an advance by a marker or a counter cheque, (v) a payment on a bet, including a slot jackpot, (vi) a payment to a client of funds received for credit to that client or another client, (vii) the cashing of a cheque or the redemption of another negotiable instrument, (viii) a reimbursement to a client of travel or entertainment expenses; 2023, c. 26 Budget Implementation Act, 2023, No. 1 299 Section 181 of the Budget Implementation Act, 2023, No. 1 is amended by replacing the paragraph 7.1(1)(b) that it enacts with the following: (b) an order or regulation made under the United Nations Act ; 300 Subsection 204(2) of the Act is amended by replacing the subsection 81(2) that it enacts with the following: Time limitation — eight years (2) Proceedings under paragraph 77.3(3)(a) or 77.4(a) may be instituted within, but not after, eight years after the time when the subject-matter of the proceedings arose. Consequential Amendments R.S., c. 1 (2nd Supp.) Customs Act 301 (1) Paragraph 107(3)(a) of the Customs Act is replaced by the following: (a) for the purposes of administering or enforcing this Act, the Customs Tariff , the Excise Act, 2001 , the Special Imports Measures Act or Part 2 or 2.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act or for any purpose set out in subsection (4), (5) or (7); (2) The portion of paragraph 107(4)(b) of the Act before subparagraph (i) is replaced by the following: (b) will be used solely in or to prepare for any legal proceedings relating to the administration or enforcement of an international agreement relating to trade, this Act, the Customs Tariff , the Special Import Measures Act , any other Act of Parliament or law of a province that provides for the imposition or collection of a tax or duty or Part 2 or 2.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act , before (3) Paragraph 107(4)(c) of the Act is replaced by the following: (c) may reasonably be regarded as necessary solely for a purpose relating to the administration or enforcement of this Act, the Customs Tariff , the Excise Act , the Excise Act, 2001 , the Excise Tax Act , the Export and Import Permits Act , the Immigration and Refugee Protection Act , the Special Import Measures Act or Part 2 or 2.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act by an official of the Agency; (4) Paragraph 107(4)(f) of the Act is replaced by the following: (f) will be used solely for a purpose relating to the supervision, evaluation or discipline of a specified person by His Majesty in right of Canada in respect of a period during which the person was employed or engaged by, or occupied a position of responsibility in the service of, His Majesty in right of Canada to administer or enforce this Act, the Customs Tariff , the Special Import Measures Act or Part 2 or 2.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to the extent that the information is relevant for that purpose; 1993, c. 37 Seized Property Management Act 302 (1) Paragraph 4(1)(b.1) of the Seized Property Management Act is replaced by the following: (b.1) forfeited under subsection 14(5) or 39.03(5), seized under subsection 18(1) or 39.06(1) or paid under subsection 18(2) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act ; (2) Paragraph 4(1)(b.3) of the Act is replaced by the following: (b.3) if the Minister agrees to be responsible for its custody and management, forfeited under any Act of Parliament, other than under subsection 14(5) or 39.03(5) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act or subparagraph 715.34(1)(e)(i) of the Criminal Code or forfeited under any Act of the legislature of a province; or SOR/2001-317; SOR/2002-185, s. 1 Proceeds of Crime (Money Laundering) Suspicious Transaction Reporting Regulations 303 Section 9 of the Proceeds of Crime (Money Laundering) Suspicious Transaction Reporting Regulations is replaced by the following: 9 (1) Subject to section 11, a report made under section 7 of the Act concerning a financial transaction or attempted financial transaction in respect of which there are reasonable grounds to suspect that the transaction or attempted transaction is related to the commission of a money laundering offence, a terrorist activity financing offence or a sanctions evasion offence shall contain the information set out in Schedule 1. (2) The person or entity shall send the report to the Centre as soon as practicable after they have taken measures that enable them to establish that there are reasonable grounds to suspect that the transaction or attempted transaction is related to the commission of a money laundering offence, a terrorist activity financing offence or a sanctions evasion offence. 304 Item 1 of Part G of Schedule 1 to the Regulations is replaced by the following: 1* Detailed description of grounds to suspect that transaction or attempted transaction is related to the commission or attempted commission of a money laundering offence, a terrorist activity financing offence or a sanctions evasion offence Coordinating Amendments 2023, c. 26 305 (1) In subsections (2) and (3), other Act means the Budget Implementation Act, 2023, No. 1 . (2) If section 181 of the other Act comes into force before section 299 of this Act, then (a) that section 299 is deemed never to have come into force and is repealed; and (b) paragraph 7.1(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act is replaced by the following: (b) an order or regulation made under the United Nations Act ; (3) If section 181 of the other Act comes into force on the same day as section 299 of this Act, then that section 299 is deemed to have come into force before that section 181. Coming into Force Order in council 306 (1) Subsection 278 (1) and sections 285 , 296 , 297 , 301 and 302 come into force on a day to be fixed by order of the Governor in Council. Order in council (2) Subsection 278 (3) and section 279 come into force on a day to be fixed by order of the Governor in Council. 60 days after royal assent (3) Sections 280 , 303 and 304 come into force on the 60th day after the day on which this Act receives royal assent. SUBDIVISION B R.S., c. C- 46 Criminal Code Amendments to the Act 307 Subsection 83.13(11) of the Criminal Code is replaced by the following: Procedure (11) Subsection 462.32(4), sections 462.34 to 462.35 and 462.4, subsection 487(3) and section 488 apply, with any modifications that the circumstances require, to a warrant issued under paragraph (1)(a). Any peace officer who executes the warrant must have authority to act as a peace officer in the place where it is executed. 308 Section 462.31 of the Act is amended by adding the following after subsection (1): Prosecution (1.1) Subject to subsection (1.3), in a prosecution for an offence under subsection (1), it is not necessary for the prosecutor to prove that the accused knew, believed they knew or was reckless as to the specific nature of the designated offence. Inference (1.2) Subject to subsection (1.3), the court may infer that an accused had the knowledge or belief or demonstrated the recklessness referred to in subsection (1) if it is satisfied, given the circumstances of the offence, that the manner in which the accused dealt with the property or its proceeds is markedly unusual or the accused’s dealings are inconsistent with lawful activities typical of the sector in which they take place, including business activities. Exception (1.3) Subsections (1.1) and (1.2) do not apply in cases where the accused is also charged with the designated offence. 309 (1) Subsection 462.32(1) of the Act is replaced by the following: Special search warrant 462.32 (1) Subject to subsection (3), if a judge, on application of the Attorney General, is satisfied by information on oath in Form 1 that there are reasonable grounds to believe that there is in any building, receptacle or place any property that is proceeds of crime, the judge may issue a warrant authorizing a person named in the warrant or a peace officer to (a) search the building, receptacle or place for that property; and (b) seize that property and any other property that that person or peace officer believes, on reasonable grounds, is proceeds of crime. (2) Section 462.32 of the Act is amended by adding the following after subsection (2): Conditions (2.01) A warrant issued under subsection (1) may be subject to any reasonable conditions that the judge thinks fit. (3) Subsection 462.32(6) of the Act is repealed. 310 (1) The portion of subsection 462.321(1) of the Act before paragraph (a) is replaced by the following: Special warrant — digital assets 462.321 (1) If, on an application of the Attorney General, a judge is satisfied by information on oath in Form 1, varied to suit the case, that there are reasonable grounds to believe that any digital assets, including virtual currency, are proceeds of crime, the judge may issue a warrant authorizing a person named in the warrant or a peace officer to (2) Paragraph 462.321(1)(b) of the Act is replaced by the following: (b) seize — including by taking control of the right to access — the digital assets, as well as any other digital assets found during that search that the person or peace officer believes, on reasonable grounds, are proceeds of crime. (3) Subsection 462.321(2) of the Act is replaced by the following: Conditions (2) A warrant issued under subsection (1) may be subject to any reasonable conditions that the judge thinks fit. (4) Section 462.321 of the Act is amended by adding the following after subsection (3): Execution in Canada (3.1) A warrant issued under subsection (1) may be executed at any place in Canada. Any peace officer who executes the warrant must have authority to act as a peace officer in the place where it is executed. (5) Subsection 462.321(7) of the Act is repealed. 311 (1) Paragraph 462.33(2)(c) of the Act is replaced by the following: (c) the grounds for the belief that the property is proceeds of crime; (2) Subsection 462.33(3) of the Act is replaced by the following: Restraint order (3) A judge who hears an application for a restraint order made under subsection (1) may, if the judge is satisfied that there are reasonable grounds to believe that there exists any property that is proceeds of crime, make an order prohibiting any person from disposing of, or otherwise dealing with any interest in, the property specified in the order otherwise than in the manner that may be specified in the order. (3) Subsection 462.33(7) of the Act is repealed. 312 (1) Paragraph 487.018(1)(a) of the Act is replaced by the following: (a) the account number of a person named in the order or the name of a person whose account number is specified in the order, as well as, in the case of digital assets, including virtual currency, the name and account number of a person whose identifier associated with digital assets is specified in the order; (2) The portion of subsection 487.018(2) of the Act before paragraph (b) is replaced by the following: Identification of person (2) For the purpose of confirming the identity of a person who is named or whose account number or identifier associated with digital assets is specified in the order, the order may also require the institution, person or entity to prepare and produce a document setting out the following data that is in their possession or control: (a) the date of birth of a person who is named or whose account number or identifier associated with digital assets is specified in the order; 313 Form 1 of Part XXVIII of the Act is amended by replacing the references after the heading “FORM 1” with the following: (Sections 320.29, 462.32, 462.321 and 487) Consequential Amendments 1993, c. 37 Seized Property Management Act 314 Paragraph 13(3)(b) of the Seized Property Management Act is repealed. 315 Section 16 of the Act is replaced by the following: Credit of excess to account 16 At the prescribed times, all amounts credited to the Proceeds Account that are not shared under sections 10 and 11, less the amounts that are reserved for future losses and for ongoing expenses, shall be credited to the prescribed account in the accounts of Canada. SOR/95- 76 Forfeited Property Sharing Regulations 316 Subparagraph 5(b)(ii) of the Forfeited Property Sharing Regulations is repealed. Coming into Force 90 days after royal assent 317 This Subdivision comes into force on the 90th day after the day on which this Act receives royal assent. DIVISION 9 R.S., c. F-8; 1995, c. 17, s. 45 Federal-Provincial Fiscal Arrangements Act Amendment to the Act 318 Section 42 of the Federal-Provincial Fiscal Arrangements Act is replaced by the following: Payments under Parts I, I.1, II and V.1 42 The Minister shall publish the following information on a Government of Canada website as soon as feasible after the payment of an amount under Part I, I.1, II or V.1: (a) the amount; (b) the name of the province to which the payment was made; and (c) the date of the payment. Coming into Force June 22, 2023 319 Section 318 is deemed to have come into force on June 22, 2023. DIVISION 10 1999, c. 34 Public Sector Pension Investment Board Act 320 (1) Subsection 6(1) of the Public Sector Pension Investment Board Act is replaced by the following: Board of directors 6 (1) The Board shall be managed by a board of 13 directors, including the Chairperson. (2) Subsection 6(2) of the Act is amended by adding the following after paragraph (g): (g.1) a person who is a member of an advisory committee established under section 41 of the Public Service Superannuation Act , section 49.1 of the Canadian Forces Superannuation Act or section 25.1 of the Royal Canadian Mounted Police Superannuation Act ; 321 Section 9 of the Act is amended by adding the following after subsection (2): Recommendations for certain directors (3) For two of the directors, the Minister’s recommendation under subsection (1) shall be made from among the candidates who are included on the list in accordance with subsection 10(6). 322 Section 10 of the Act is amended by adding the following after subsection (5): Inclusion of certain candidates (6) When including a candidate who the Minister may recommend under subsection 9(3) on a list of qualified candidates for proposed appointment as directors, the nominating committee shall consult the portion of the National Joint Council of the Public Service that represents employees and shall have regard to any factors for consideration provided by that portion of the National Joint Council. DIVISION 11 Department of Housing, Infrastructure and Communities Act Enactment of Act Enactment 323 The Department of Housing, Infrastructure and Communities Act is enacted as follows: An Act to establish the Department of Housing, Infrastructure and Communities Preamble Whereas public infrastructure and housing are essential for communities to be complete, inclusive and environmentally sustainable; Whereas these types of communities foster a stronger national economy in which the people of Canada can prosper and thrive; Whereas advancing public infrastructure and housing outcomes is best achieved through cooperation between governments as well as the meaningful involvement of local communities; Whereas effective support for infrastructure plays a key role in improving housing outcomes; And whereas promoting the use of innovative financial tools helps attract investment from the private sector and institutional investors in public infrastructure projects; Now, therefore, His Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: Short Title Short title 1 This Act may be cited as the Department of Housing, Infrastructure and Communities Act . Definition Definition of Department 2 In this Act, Department means the department established under section 3 . Department of Housing, Infrastructure and Communities Department established 3 A department of the Government of Canada, called the Department of Housing, Infrastructure and Communities, is established and is to be presided over by the Minister of Infrastructure and Communities. Deputy Minister 4 The Governor in Council may appoint a Deputy Minister of Housing, Infrastructure and Communities to hold office during pleasure and to be the deputy head of the Department. Minister of Infrastructure and Communities Minister of Infrastructure and Communities 5 The Minister of Infrastructure and Communities, appointed by commission under the Great Seal, holds office during pleasure and has the management and direction of the Department. Powers, duties and functions 6 (1) The powers, duties and functions of the Minister of Infrastructure and Communities extend to and include all matters relating to public infrastructure over which Parliament has jurisdiction and that are not by law assigned to any other department, board or agency of the Government of Canada. Particulars (2) Without restricting the generality of subsection (1), the Minister of Infrastructure and Communities’ duties and functions include supporting and promoting infrastructure projects and initiatives that are in the public interest in order to foster the prosperity, inclusivity and environmental sustainability of communities. Minister of Housing Appointment 7 A Minister of Housing may be appointed by commission under the Great Seal to hold office during pleasure. Powers, duties and functions 8 (1) The powers, duties and functions of the Minister of Housing extend to and include all matters relating to housing and the reduction and prevention of homelessness over which Parliament has jurisdiction and that are not by law assigned to any other Minister, department, board or agency of the Government of Canada. Particulars (2) Without restricting the generality of subsection (1), the Minister of Housing’s duties and functions include advancing national housing priorities and reducing and preventing homelessness to foster the prosperity, inclusivity and environmental sustainability of communities. Use of departmental services and facilities 9 The Minister of Housing is to make use of the Department services and facilities and may authorize employees of the Department to exercise any power or perform any duty or function of the Minister of Housing. Provisions Applicable to Both Ministers No Minister appointed 10 If no Minister is appointed under section 7 , (a) the Minister of Infrastructure and Communities is to exercise the powers and perform the duties and functions of the Minister of Housing; and (b) every reference to the Minister of Housing in any Act of Parliament or in any order, regulation or other instrument made under an Act of Parliament is to be read as a reference to the Minister of Infrastructure and Communities, unless the context otherwise requires. General duties and powers 11 The Minister of Infrastructure and Communities or the Minister of Housing, as the case may be, may, in exercising their powers and performing their duties and functions, (a) establish, recommend, coordinate and implement initiatives, programs and projects; (b) make grants and contributions; (c) collaborate or enter into agreements or other arrangements with other federal, provincial or territorial departments, boards and agencies, local governments, Indigenous bodies or any institution or person; (d) undertake, coordinate and promote research activities; and (e) subject to the Statistics Act , collect, analyze, interpret, publish or distribute information. Committees 12 (1) The Minister of Infrastructure and Communities or the Minister of Housing, as the case may be, may establish advisory and other committees and provide for their membership, duties, functions and operation. Remuneration (2) The Minister of Infrastructure and Communities or the Minister of Housing, as the case may be, may fix the remuneration that members of a committee are to be paid for the performance of their duties and functions. Travel, living and other expenses (3) Members of a committee are entitled to be reimbursed, in accordance with Treasury Board directives, for the travel, living and other expenses incurred for the performance of their duties and functions while absent from their ordinary place of residence. Transitional Provisions Deputy Minister 324 (1) Any person who, immediately before the day on which this section comes into force, holds the office of Deputy Head of Infrastructure and Communities, styled as Deputy Minister of Infrastructure and Communities, is deemed, as of that day, to have been appointed as the Deputy Minister referred to in section 4 of the Department of Housing, Infrastructure and Communities Act , as enacted by section 323 . Persons who occupy a position (2) Nothing in the Department of Housing, Infrastructure and Communities Act is to be construed as affecting the status of any person who, immediately before the day on which this section comes into force, occupies or is assigned to a position in the Office of Infrastructure of Canada, except that, as of that day, the person occupies or is assigned to their position in the Department of Housing, Infrastructure and Communities. Transfer of appropriations 325 Any amount that is appropriated by an Act of Parliament for the fiscal year in which this section comes into force to defray the expenditures of the public service of Canada within the Office of Infrastructure of Canada and that is unexpended on the day on which this section comes into force is deemed to be an amount appropriated to defray the expenditures of the public service of Canada within the Department of Housing, Infrastructure and Communities. References 326 On the day on which this section comes into force, every reference to the Office of Infrastructure of Canada in any agreement, contract, instrument or act or other document is to be read as a reference to the Department of Housing, Infrastructure and Communities, unless the context requires otherwise. Consequential Amendments R.S., c. A- 1 Access to Information Act 327 Schedule I to the Access to Information Act is amended by adding the following in alphabetical order under the heading “Departments and Ministries of State”: Department of Housing, Infrastructure and Communities Ministère du Logement, de l’Infrastructure et des Collectivités 328 Schedule I to the Act is amended by striking out the following under the heading “Other Government Institutions”: Office of Infrastructure of Canada Bureau de l’infrastructure du Canada R.S., c. F- 11 Financial Administration Act 329 Schedule I to the Financial Administration Act is amended by adding the following in alphabetical order: Department of Housing, Infrastructure and Communities Ministère du Logement, de l’Infrastructure et des Collectivités 330 Schedule I.1 to the Act is amended by striking out, in column I, the reference to Office of Infrastructure of Canada Bureau de l’infrastructure du Canada and the corresponding reference in column II to “Minister of Infrastructure and Communities”. 331 Schedule IV to the Act is amended by striking out the following: Office of Infrastructure of Canada Bureau de l’infrastructure du Canada 332 Part I of Schedule VI to the Act is amended by adding the following in alphabetical order: Department of Housing, Infrastructure and Communities Ministère du Logement, de l’Infrastructure et des Collectivités 333 Part II of Schedule VI to the Act is amended by striking out, in column I, the reference to Office of Infrastructure of Canada Bureau de l’infrastructure du Canada and the corresponding reference in column II to “Deputy Head”. R.S., c. P- 21 Privacy Act 334 The schedule to the Privacy Act is amended by adding the following in alphabetical order under the heading “Departments and Ministries of State”: Department of Housing, Infrastructure and Communities Ministère du Logement, de l’Infrastructure et des Collectivités 335 The schedule to the Act is amended by striking out the following under the heading “Other Government Institutions”: Office of Infrastructure of Canada Bureau de l’infrastructure du Canada R.S., c. S- 3 Salaries Act 336 Subsection 4.1(3) of the Salaries Act is amended by adding the following after paragraph (z.25): (z.26) the Minister of Housing; 1991, c. 30 Public Sector Compensation Act 337 Schedule I to the Public Sector Compensation Act is amended by adding the following in alphabetical order under the heading “Departments”: Department of Housing, Infrastructure and Communities Ministère du Logement, de l’Infrastructure et des Collectivités 2011, c. 24 Keeping Canada’s Economy and Jobs Growing Act 338 Subsection 161(1) of the Keeping Canada’s Economy and Jobs Growing Act is replaced by the following: Maximum payment 161 (1) There may be paid out of the Consolidated Revenue Fund for each fiscal year beginning on or after April 1, 2014, on the requisition of the Minister of Infrastructure and Communities or of the Minister of Indigenous Services, in accordance with terms and conditions approved by the Treasury Board, a sum of not more than the amount determined in accordance with subsection (2) to provinces, territories, municipalities, municipal associations, provincial, territorial and municipal entities and First Nations for the purpose of municipal, regional and First Nations infrastructure. 2019, c. 29 National Housing Strategy Act 339 Section 12 of the National Housing Strategy Act is replaced by the following: Administrative support 12 The Minister is to provide the National Housing Council with any administrative services and facilities that are necessary to assist the Council in performing its duties and functions. Repeal Repeal 340 The Canada Strategic Infrastructure Fund Act , section 47 of chapter 9 of the Statutes of Canada, 2002, is repealed. Coming into Force Second anniversary or order in council 341 (1) Section 339 comes into force on the second anniversary of the day on which this Act receives royal assent or on an earlier day to be fixed by order of the Governor in Council. Order in council (2) Section 340 comes into force on a day to be fixed by order of the Governor in Council. DIVISION 12 Measures Related to Placement or Arrival of Children 1996, c. 23 Employment Insurance Act Amendments to the Act 342 (1) Section 10 of the Employment Insurance Act is amended by adding the following after subsection (11): Extension of benefit period — placement or arrival delayed (11.1) If the placement or arrival of the child or children referred to in subsection 22.1(1) is delayed, the benefit period is extended by the number of weeks during which the placement or arrival is delayed. (2) Paragraph 10(13.01)(c) of the Act is replaced by the following:   (c) benefits were not paid for any reason mentioned in paragraph 12(3)(a), (a.1), (c), (d), (e) or (f). 343 (1) Subsection 12(3) of the Act is amended by adding the following after paragraph (a): (a.1) because the claimant is carrying out the responsibilities described in subsection 22.1(1) is 15; (2) Subsection 12(4) of the Act is amended by striking out “and” at the end of paragraph (a) and by adding the following after that paragraph: (a.1) for carrying out the responsibilities described in subsection 22.1(1) in relation to the placement of one or more children for the purpose of adoption as a result of a single placement or the arrival of one or more new-born children as a result of a single pregnancy is 15; and 344 Subsection 18(2) of the Act is replaced by the following: Exception (2) A claimant to whom benefits are payable under any of sections 22.1 to 23.3 is not disentitled under paragraph (1)(b) for failing to prove that they would have been available for work were it not for the illness, injury or quarantine. 345 The Act is amended by adding the following after section 22: Benefit for responsibilities related to child’s placement or arrival 22.1 (1) Despite section 18, but subject to this section, benefits are payable to a major attachment claimant for carrying out responsibilities related to (a) the placement with the claimant of one or more children for the purpose of adoption under the laws governing adoption in the province in which the claimant resides; or (b) the arrival of one or more new-born children of the claimant into the claimant’s care, in the case where the person who will be giving or gave birth to the child or children is not, or is not intended to be, a parent of the child or children. Weeks for which benefits may be paid (2) Subject to section 12, benefits under this section are payable for each week of unemployment in the period (a) that begins the earlier of (i) five weeks before the week in which the placement of the child or children with the claimant for the purpose of adoption is expected or the new-born child or children of the claimant are expected to arrive into the claimant’s care, and (ii) the week in which the child or children are actually placed with the claimant for the purpose of adoption or the new-born child or children of the claimant actually arrive into the claimant’s care; and (b) that ends 17 weeks after the week in which the child or children are actually placed with the claimant for the purpose of adoption or the new-born child or children of the claimant actually arrive into the claimant’s care. Limitation — delay of placement or arrival (3) If the placement or arrival of the child or children referred to in subsection (1) is delayed, the period referred to in subsection (2) must not, subject to any extension under subsection (4), exceed 52 weeks after the week in which the placement or arrival was expected. Extension of period — children in hospital (4) If the child or children referred to in subsection (1) are hospitalized during the period that begins the week referred to in subparagraph (2)(a)(ii) and that ends 17 weeks after that week, the period referred to in subsection (2) is extended by the number of weeks during which the child or children are hospitalized. Limitation — children in hospital (5) The extended period shall end no later than 52 weeks after the week referred to in subparagraph (2)(a)(ii). Limitation (6) If benefits are payable to a claimant for the reasons set out in this section and any allowances, money or other benefits are payable to the claimant for the same reasons under a provincial law, the benefits payable to the claimant under this Act are to be reduced or eliminated as prescribed. Application of section 18 (7) For the purposes of section 13, the provisions of section 18 do not apply to the week that immediately precedes the period described in subsection (2). Division of weeks of benefits (8) If two major attachment claimants each make a claim for benefits under this section — or if one major attachment claimant makes a claim for benefits under this section and an individual makes a claim for benefits under section 152.041 — in respect of the same child or children, the weeks of benefits payable under this section, under section 152.041 or under both those sections may be divided between them up to a maximum of 15. If they cannot agree, the weeks of benefits are to be divided in accordance with the prescribed rules. Maximum number of weeks that can be divided (9) For greater certainty, if, in respect of the same child or children, a major attachment claimant makes a claim for benefits under this section and an individual makes a claim for benefits under section 152.041, the total number of weeks of benefits payable under this section and section 152.041 that may be divided between them may not exceed 15. Deferral of waiting period (10) A major attachment claimant who makes a claim for benefits under this section may have their waiting period deferred until they make another claim for benefits in the same benefit period, otherwise than under this section, if (a) the claimant has already made a claim for benefits under this section in respect of the same child or children and has served the waiting period; (b) another major attachment claimant has made a claim for benefits under this section in respect of the same child or children and that other claimant has served or is serving their waiting period; (c) another major attachment claimant is making a claim for benefits under this section in respect of the same child or children at the same time as the claimant and that other claimant elects to serve the waiting period; or (d) the claimant or another major attachment claimant meets the prescribed requirements. Exception (11) If a major attachment claimant makes a claim under this section and an individual makes a claim under section 152.041 in respect of the same child or children and one of them has served or elected to serve their waiting period, then (a) if the major attachment claimant is not the one who served or elected to serve the waiting period, that claimant is not required to serve a waiting period; or (b) if the individual is not the one who served or elected to serve the waiting period, that claimant may have their waiting period deferred in accordance with section 152.041. 346 (1) Paragraph 23(3.21)(c) of the Act is replaced by the following:   (c) benefits were not paid for any reason mentioned in paragraph 12(3)(a), (a.1), (c), (d), (e) or (f). (2) The portion of subsection 23(5) of the Act before paragraph (d) is replaced by the following: Deferral of waiting period (5) A major attachment claimant who makes a claim for benefits under this section may have their waiting period deferred until they make another claim for benefits in the same benefit period, otherwise than under this section or section 22 or 22.1, if (a) the claimant has already made a claim for benefits under this section or section 22 or 22.1 in respect of the same child or children and has served the waiting period; (b) another major attachment claimant has made a claim for benefits under this section or section 22 or 22.1 in respect of the same child or children and that other claimant has served or is serving their waiting period; (c) another major attachment claimant is making a claim for benefits under this section or section 22 or 22.1 in respect of the same child or children at the same time as the claimant and that other claimant elects to serve the waiting period; or (3) The portion of subsection 23(6) of the Act before paragraph (a) is replaced by the following: Exception (6) If a major attachment claimant makes a claim under this section or section 22 or 22.1 and an individual makes a claim under section 152.04, 152.041 or 152.05 in respect of the same child or children and one of them has served or elected to serve their waiting period, then (4) Paragraph 23(6)(b) of the Act is replaced by the following: (b) if the individual is not the one who served or elected to serve the waiting period, that claimant may have their waiting period deferred in accordance with section 152.041 or 152.05, as the case may be. 347 Paragraph 54(f.7) of the Act is replaced by the following: (f.7) prescribing rules for the purposes of subsections 22.1(8), 23(4), 23.1(9), 23.2(8), 23.3(6), 152.041(8), 152.05(12), 152.06(7), 152.061(8) and 152.062(6); 348 (1) Paragraph 69(1)(a) of the Act is replaced by the following:   (a) the payment of any allowances, money or other benefits because of illness, injury, quarantine, pregnancy, responsibilities related to a child’s placement or arrival, child care, compassionate care, a child’s critical illness or an adult’s critical illness under a plan that covers insured persons employed by the employer, other than one established under a provincial law, would have the effect of reducing the special benefits payable to the insured persons; and (2) Subsection 69(2) of the Act is replaced by the following: Provincial plans (2) The Commission shall, with the approval of the Governor in Council, make regulations to provide a system for reducing the employer’s and employee’s premiums, the premiums under Part VII.1 or all those premiums, when the payment of any allowances, money or other benefits because of illness, injury, quarantine, pregnancy, responsibilities related to a child’s placement or arrival, child care, compassionate care, a child’s critical illness or an adult’s critical illness under a provincial law to insured persons or to self-employed persons, as the case may be, would have the effect of reducing or eliminating the special benefits payable to those insured persons or the benefits payable to those self-employed persons. 349 Subsection 152.03(1.1) of the Act is replaced by the following: Exception (1.1) A self-employed person to whom benefits are payable under any of sections 152.041 to 152.062 is entitled to benefits under subsection (1) even though the person did not cease to work as a self-employed person because of a prescribed illness, injury or quarantine and would not be working even without the illness, injury or quarantine. 350 The Act is amended by adding the following after section 152.04: Benefit for responsibilities related to child’s placement or arrival 152.041 (1) Subject to this Part, benefits are payable to a self-employed person for carrying out responsibilities related to (a) the placement with the self-employed person of one or more children for the purpose of adoption under the laws governing adoption in the province in which the person resides; or (b) the arrival of one or more new-born children of the self-employed person into the self-employed person’s care, in the case where the person who will be giving or gave birth to the child or children is not, or is not intended to be, a parent of the child or children. Weeks for which benefits may be paid (2) Subject to section 152.14, benefits under this section are payable for each week of unemployment in the period (a) that begins the earlier of (i) five weeks before the week in which the placement of the child or children with the self-employed person for the purpose of adoption is expected or the new-born child or children of the self-employed person are expected to arrive into the self-employed person’s care, and (ii) the week in which the child or children are actually placed with the self-employed person for the purpose of adoption or the new-born child or children of the self-employed person actually arrive into the self-employed person’s care; and (b) that ends 17 weeks after the week in which the child or children are actually placed with the self-employed person for the purpose of adoption or the new-born child or children of the self-employed person actually arrive into the self-employed person’s care. Limitation — delay of placement or arrival (3) If the placement or arrival of the child or children referred to in subsection (1) is delayed, the period referred to in subsection (2) must not, subject to any extension under subsection (4), exceed 52 weeks after the week in which the placement or arrival was expected. Extension of period — children in hospital (4) If the child or children referred to in subsection (1) are hospitalized during the period that begins the week referred to in subparagraph (2)(a)(ii) and that ends 17 weeks after that week, the period referred to in subsection (2) is extended by the number of weeks during which the child or children are hospitalized. Limitation — children in hospital (5) The extended period shall end no later than 52 weeks after the week referred to in subparagraph (2)(a)(ii). Limitation (6) If benefits are payable to a self-employed person for the reasons set out in this section and any allowances, money or other benefits are payable to the self-employed person for the same reasons under a provincial law, the benefits payable to the self-employed person under this Part are to be reduced or eliminated as prescribed. Presumption (7) With regard to serving the waiting period under section 152.15, the week that immediately precedes the period described in subsection (2) is deemed to be a week that is included in that period. Division of weeks of benefits (8) If two self-employed persons each make a claim for benefits under this section — or if one self-employed person makes a claim for benefits under this section and another person makes a claim for benefits under section 22.1 — in respect of the same child or children, the weeks of benefits payable under this section, under section 22.1 or under both those sections may be divided between them up to a maximum of 15. If they cannot agree, the weeks of benefits are to be divided in accordance with the prescribed rules. Maximum number of weeks that can be divided (9) For greater certainty, if, in respect of the same child or children, a self-employed person makes a claim for benefits under this section and another person makes a claim for benefits under section 22.1, the total number of weeks of benefits payable under this section and section 22.1 that may be divided between them may not exceed 15. Deferral of waiting period (10) A self-employed person who makes a claim for benefits under this section may have their waiting period deferred until they make another claim for benefits in the same benefit period, otherwise than under this section, if (a) the self-employed person has already made a claim for benefits under this section in respect of the same child or children and has served the waiting period; (b) another self-employed person has made a claim for benefits under this section in respect of the same child or children and that other self-employed person has served or is serving their waiting period; (c) another self-employed person is making a claim for benefits under this section in respect of the same child or children at the same time as the self-employed person and that other self-employed person elects to serve the waiting period; or (d) the self-employed person or another self-employed person meets the prescribed requirements. Exception (11) If a self-employed person makes a claim under this section and an another person makes a claim under section 22.1 in respect of the same child or children and one of them has served or elected to serve their waiting period, then (a) if the self-employed person is not the one who served or elected to serve the waiting period, the self-employed person is not required to serve a waiting period; or (b) if the person making the claim under section 22.1 is not the one who served or elected to serve the waiting period, the person may have their waiting period deferred in accordance with section 22.1. 351 (1) Subsection 152.05(5.1) of the Act is replaced by the following: Extension of period — reason mentioned in paragraph 152.14(1)(b) (5.1) If, during a self-employed person’s benefit period, benefits were not paid for any reason mentioned in paragraph 152.14(1)(a), (a.1), (c), (d), (e) or (f) and benefits were paid to the person for the reason mentioned in paragraph 152.14(1)(b) in the case where the applicable maximum number of weeks is established under subparagraph 152.14(1)(b)(ii), the period referred to in subsection (2) is extended by 26 weeks so that benefits may be paid up to that maximum number of weeks. (2) The portion of subsection 152.05(14) of the Act before paragraph (d) is replaced by the following: Deferral of waiting period (14) A self-employed person who makes a claim for benefits under this section may have their waiting period deferred until they make another claim for benefits in the same benefit period, otherwise than under this section or section 152.04 or 152.041, if (a) the self-employed person has already made a claim for benefits under this section or section 152.04 or 152.041 in respect of the same child or children and has served the waiting period; (b) another self-employed person has made a claim for benefits under this section or section 152.04 or 152.041 in respect of the same child or children and that other self-employed person has served or is serving their waiting period; (c) another self-employed person is making a claim for benefits under this section or section 152.04 or 152.041 in respect of the same child or children at the same time as the self-employed person and that other self-employed person elects to serve the waiting period; or (3) The portion of subsection 152.05(15) of the Act before paragraph (a) is replaced by the following: Exception (15) If a self-employed person makes a claim under this section or section 152.04 or 152.041 and another person makes a claim under section 22, 22.1 or 23 in respect of the same child or children and one of them has served or elected to serve their waiting period, then (4) Paragraph 152.05(15)(b) of the Act is replaced by the following: (b) if the person making the claim under section 22, 22.1 or 23 is not the one who served or elected to serve the waiting period, the person may have their waiting period deferred in accordance with section 22.1 or 23, as the case may be. 352 Subsection 152.09(2) of the Act is amended by adding the following after paragraph (a): (a.1) carrying out the responsibilities described in subsection 152.041(1); 353 (1) Section 152.11 of the Act is amended by adding the following after subsection (12): Extension of benefit period — placement or arrival delayed (12.1) If the placement or arrival of the child or children referred to in subsection 152.041(1) is delayed, the benefit period is extended by the number of weeks during which the placement or arrival is delayed. (2) Subsection 152.11(14.1) of the Act is replaced by the following: Extension of benefit period — reason mentioned in paragraph 152.14(1)(b) (14.1) If, during a self-employed person’s benefit period, benefits were not paid for any reason mentioned in paragraph 152.14(1)(a), (a.1), (c), (d), (e) or (f), and benefits were paid to the person for the reason mentioned in paragraph 152.14(1)(b) in the case where the applicable maximum number of weeks is established under subparagraph 152.14(1)(b)(ii), the benefit period is extended by 26 weeks so that benefits may be paid up to that maximum number of weeks. 354 (1) Subsection 152.14(1) of the Act is amended by adding the following after paragraph (a): (a.1) because the self-employed person is carrying out the responsibilities described in subsection 152.041(1) is 15; (2) Subsection 152.14(2) of the Act is amended by striking out “and” at the end of paragraph (a) and by replacing paragraph (a) with the following: (a.1) for carrying out the responsibilities described in subsection 152.041(1) in relation to the placement of one or more children for the purpose of adoption as a result of a single placement or the arrival of one or more new-born children as a result of a single pregnancy is 15; and Transitional Provision Benefit for responsibilities related to child’s placement or arrival 355 The Employment Insurance Act , as it read immediately before the day on which sections 345 and 350 come into force, continues to apply to a claimant for the purpose of paying benefits under that Act in respect of a child or children who have, before that day, (a) been placed with the claimant for the purpose of adoption under the laws governing adoption in the province in which the claimant resides; or (b) arrived into the care of the claimant. R.S., c. L- 2 Canada Labour Code Amendments to the Act 356 Subsection 187.1(2) of the Canada Labour Code is replaced by the following: Application of section 209.1 (2) If an employee interrupts a vacation to take leave under any of sections 205.1, 206 to 206.1 and 206.3 to 206.9 and resumes the vacation immediately at the end of that leave, section 209.1 applies to them as if they did not resume the vacation before returning to work. 357 The Act is amended by adding the following after section 206: Leave for Placement of Child Definitions 206.01 (1) The following definitions apply in this section. placement  means (a) the placement of a child into the actual care of an employee for the purposes of adoption under the laws governing adoption in the province in which the employee resides; (b) the arrival of a new-born child of an employee into the employee’s actual care, in the case where the person who gave birth to the child is not, or is not intended to be, a parent of the child; or (c) any other case prescribed by regulation. ( placement ) week  means the period between midnight on Saturday and midnight on the immediately following Saturday. ( semaine ) Entitlement to leave (2) Subject to subsections (7) and (8), every employee is entitled to and shall be granted a leave of absence from employment of up to 16 weeks for carrying out responsibilities related to a placement. Period when leave may be taken (3) The leave of absence may only be taken during the period (a) beginning no earlier than six weeks before the week of the estimated date of the placement or, if the actual date of the placement is earlier than the estimated date, no earlier than the week of that actual date; and (b) ending no later than 17 weeks following the week of the actual date of that placement. Delayed placement (4) If the placement is delayed, the period referred to in subsection (3) must not, subject to any extension under subsection (5), end later than 52 weeks following the week of the estimated date referred to in paragraph (3)(a). Extension of period — child in hospital (5) If, after placement, the child is hospitalized during the period referred to in subsection (3), the period is extended by the number of weeks during which the child is hospitalized. Restriction (6) An extension under subsection (5) must not result in the period referred to in subsection (3) ending later than 52 weeks following the week of the actual date of the placement. Aggregate leave — employees (7) The aggregate amount of leave that may be taken by more than one employee under this section in respect of the same placement must not exceed 16 weeks. If placement will not occur (8) If, during a leave of absence under this section, the employee is informed that the placement will not occur, the leave may continue until the end of the week after the week in which the employee is so informed. 358 The Act is amended by adding the following after section 206.2: Aggregate leave — leave for placement of child and parental leave 206. 21 The aggregate amount of leave that may be taken by more than one employee under sections 206.01 and 206.1 in respect of the same child shall not exceed 85 weeks, but the aggregate amount of leave that may be taken by one employee under those sections in respect of the same child shall not exceed 77 weeks. 359 (1) The portion of subsection 207(1) of the Act before paragraph (a) is replaced by the following: Notification to employer 207 (1) Every employee who intends to take a leave of absence from employment under any of sections 206 to 206.1 shall (2) Subsection 207(2) of the English version of the Act is replaced by the following: Change in length of leave (2) Every employee who intends to take or who is on a leave of absence from employment under any of sections 206 to 206.1 shall provide the employer with notice in writing of at least four weeks of any change in the length of leave intended to be taken, unless there is a valid reason why that notice cannot be given, in which case the employee shall provide the employer with notice in writing as soon as possible. 360 Section 207.01 of the Act is replaced by the following: Minimum periods of leave 207. 01 Subject to the regulations, a leave of absence under any of sections 206.01 and 206.3 to 206.5 may only be taken in one or more periods of not less than one week’s duration. 361 Subsection 207.02(1) of the Act is replaced by the following: Interruption 207.02 (1) An employee may interrupt a leave of absence referred to in any of sections 206.01 and 206.3 to 206.5 in order to be absent due to a reason referred to in subsection 239(1) or 239.1(1). 362 (1) Subsection 207.2(1) of the Act is replaced by the following: Notification to employer — interruption for child’s hospitalization 207.2 (1) An employee who intends to interrupt their maternity or parental leave or their leave for the placement of a child in order to return to work as a result of the hospitalization of their child shall provide the employer with a notice in writing of the interruption as soon as possible. (2) Subsection 207.2(3) of the Act is replaced by the following: Refusal (3) If the employer refuses the interruption or does not advise the employee within the week referred to in subsection (2), the leave under any of sections 206 to 206.1 is extended by the number of weeks during which the child is hospitalized. The aggregate amounts of leave referred to in subsections 206.01(7) and 206.1(3) and sections 206.2 and 206.21 are extended by the same number of weeks. (3) Subsection 207.2(5) of the Act is replaced by the following: End of interruption (5) An employee who intends to return to their leave after the interruption shall, as soon as possible, advise the employer in writing of the date on which the leave is to resume. 363 (1) Paragraph 209.4(a.2) of the Act is replaced by the following: (a.2) prescribing the maximum number of periods of leave of absence that an employee may take under any of sections 206.01 and 206.3 to 206.5; (2) Section 209.4 of the Act is amended by adding the following after paragraph (c): (c.1) prescribing cases for the purposes of paragraph (c) of the definition placement in subsection 206.01(1); (c.2) defining, for the purposes of section 206.01, any word or expression that is used but not defined in that section; Transitional Provisions Definition of Act 364 (1) In this section, Act means the Canada Labour Code . Interruption of parental leave (2) An employee who, on the day on which section 357 comes into force, is on parental leave under section 206.1 of the Act and is eligible for leave for the placement of a child under section 206.01 of the Act may interrupt their parental leave to take leave for the placement of a child. Their parental leave resumes immediately after the interruption ends. Notice of interruption (3) Section 207.1 of the Act applies, with any necessary modifications, with respect to an interruption under subsection (2). Words and expressions (4) Words and expressions used in this section have the same meaning as in the Act. Coming into Force Order in council 365 This Division comes into force on a day to be fixed by order of the Governor in Council.