Bill C-69: An Act to implement certain provisions of the budget tabled in Parliament on April 16, 2024

Short Title Short title 1 This Act may be cited as the Budget Implementation Act, 2024, No. 1 . PART 1 Amendments to the Income Tax Act and Other Legislation R.S., c. 1 (5th Supp.) Income Tax Act 2 (1) The description of B in subsection 6(2) of the French version of the Income Tax Act is replaced by the following: B le produit obtenu en multipliant 1 667 par le quotient obtenu en divisant le nombre total de jours ci-dessus par 30, si le quotient ainsi obtenu n’est pas un nombre entier et qu’il est supérieur à un, en l’arrondissant au nombre entier le plus proche ou, si ce quotient est équidistant de deux nombres entiers consécutifs, en l’arrondissant au plus petit de ces deux nombres; (2) The description of D in subsection 6(2) of the French version of the Act is replaced by the following: D le nombre obtenu en divisant par 30 le nombre total de jours ci-dessus où l’employeur est propriétaire de l’automobile, si le quotient ainsi obtenu n’est pas un nombre entier et qu’il est supérieur à un, en l’arrondissant au nombre entier le plus proche ou, si ce quotient est équidistant de deux nombres entiers consécutifs, en l’arrondissant au plus petit de ces deux nombres; 3 (1) Subsection 7(1.11) of the Act is replaced by the following: Non-arm’s length relationship with trusts (1.11) For the purposes of this section, a mutual fund trust is deemed not to deal at arm’s length with a corporation only if (a) the trust controls the corporation; or (b) the corporation holds securities that give the corporation not less than 50% of the votes that could be cast at a meeting of the unitholders of the trust. (2) The portion of subsection 7(1.31) of the Act before paragraph (a) is replaced by the following: Disposition of newly acquired security (1.31) Where a taxpayer acquires at a particular time a particular security under an agreement referred to in subsection (1) — or acquires the particular security as consideration for the disposition of rights under the agreement — and, on a day that is no later than 30 days after the day that includes the particular time, the taxpayer disposes of a security that is identical to the particular security, the particular security is deemed to be the security that is so disposed of if (3) Subsection (1) applies to rights exercised or disposed of after 2004 under agreements to sell or issue securities made after 2002. (4) Subsection (2) is deemed to have come into force on January 1, 2023. 4 (1) Subparagraph 8(1)(f)(vi) of the French version of the Act is replaced by the following: (vi) des dépenses qui ne seraient pas, en vertu de l’alinéa 18(1)l), déductibles dans le calcul du revenu du contribuable pour l’année, si son emploi consistait en une entreprise exploitée par lui; (2) The portion of paragraph 8(1)(g) of the French version of the Act after subparagraph (ii) is replaced by the following: les sommes qu’il a ainsi déboursées au cours de l’année, dans la mesure où il n’a pas été remboursé et n’a pas le droit d’être remboursé à cet égard; (3) The portion of paragraph 8(1)(i) of the French version of the Act before subparagraph (i) is replaced by the following: Cotisations et autres dépenses liées à l’exercice de fonctions i) dans la mesure où il n’a pas été remboursé et n’a pas le droit d’être remboursé à cet égard, les sommes payées par le contribuable au cours de l’année, ou les sommes payées pour son compte au cours de l’année si elles sont à inclure dans son revenu pour l’année, au titre : 5 (1) 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 127.48(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) or (viii.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); (2) Paragraph 12(1)(t) of the Act, as enacted by subsection (1), is replaced by the following: Investment tax credit (t) the amount deducted under subsection 127(5) or (6), 127.48(3) or 127.49(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), (viii.1) or (viii.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); (3) Paragraph 12(1)‍(x) of the Act is amended by striking out “and” at the end of subparagraph (vii), by adding “and” at the end of subparagraph (viii) and by adding the following after subparagraph (viii): (ix) was not received by the taxpayer as an excluded loan; (4) Subsection 12(11) of the Act is amended by adding the following in alphabetical order: excluded loan  means a loan, other than a forgivable loan, evidenced in writing (a) that is from a payer that is (i) a government, municipality or other public authority in Canada, or (ii) a person resident in Canada or Canadian partnership, if it is reasonable to conclude that the payer would not have made the loan but for the direct or indirect receipt by the payer of amounts from a government, municipality or other public authority in Canada; (b) for which, at the time the loan was made, bona fide arrangements were made for repayment of the loan within a reasonable time; and (c) the funds from which were used for the purpose of earning income from a business or property. ( prêt exclu ) (5) Subsection (1) is deemed to have come into force immediately after the expiration of March 27, 2023. (6) Subsection (2) is deemed to have come into force on January 1, 2024. (7) Subsections (3) and (4) are deemed to have come into force on January 1, 2020, and apply to loans made after December 31, 2019. 6 (1) Section 13 of the Act is amended by adding the following after subsection (4): COVID — time not counted (4.01) For the purposes of subparagraph (4)(c)(ii), the period beginning on March 15, 2020 and ending on March 12, 2022 is not to be counted. (2) 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 127.48(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 (3) The portion of subsection 13(7.1) of the Act before paragraph (a), as enacted by subsection (2), 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), 127.48(3) or 127.49(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 (4) Subsection 13(7.1) of the Act is amended by striking out “or” at the end of paragraph (b), by adding “or” at the end of paragraph (b.1) and by adding the following after paragraph (b.1): (b.2) an amount received as an excluded loan as defined in subsection 12(11), (5) 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 127.48(3) by the taxpayer for a taxation year ending before the particular time, (6) Paragraph 13(7.1)(e) of the Act, as enacted by subsection (5), 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), 127.48(3) or 127.49(6) by the taxpayer for a taxation year ending before the particular time, (7) 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 127.48(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, (8) The description of I in the definition undepreciated capital cost in subsection 13(21) of the Act, as enacted by subsection (7), is replaced by the following: I is the total of all amounts deducted under subsection 127(5) or (6), 127.48(3) or 127.49(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, (9) 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 127.48, the property is deemed (10) The portion of paragraph 13(24)(a) of the Act before subparagraph (i), as enacted by subsection (9), 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, 127.48 and 127.49, the property is deemed (11) Subsection (1) is deemed to have come into force on March 12, 2020. (12) Subsections (2), (5), (7) and (9) are deemed to have come into force immediately after the expiration of March 27, 2023. (13) Subsection (4) is deemed to have come into force on January 1, 2020, and applies to loans made after December 31, 2019. (14) Subsections (3), (6), (8) and (10) are deemed to have come into force on January 1, 2024. 7 Clause 39(1)(c)(iv)(C) of the Act is replaced by the following: (C) a corporation referred to in section 6 of the Winding-up and Restructuring Act that was insolvent (within the meaning of that Act) and was a small business corporation at the time a winding-up order under that Act was made in respect of the corporation, 8 (1) Section 44 of the Act is amended by adding the following after subsection (1): COVID — time not counted (1.01) For the purposes of paragraphs (1)(c) and (d), the period beginning on March 15, 2020 and ending on March 12, 2022 is not to be counted. (2) Subsection (1) is deemed to have come into force on March 12, 2020. 9 Subparagraph 50(1)(b)(ii) of the Act is replaced by the following: (ii) the corporation is a corporation referred to in section 6 of the Winding-up and Restructuring Act that is insolvent (within the meaning of that Act) and in respect of which a winding-up order under that Act has been made in the year, or 10 (1) Subparagraph 53(1)(e)(xiii) of the Act is replaced by the following: (xiii) any amount required by subsection 127(30) or section 127.48 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 enacted by subsection (1), is replaced by the following: (xiii) any amount required by subsection 127(30), section 127.48 or subsection 127.49(17) 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 (viii): (viii.1) an amount equal to that portion of all amounts deemed deducted under subsection 127.48(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 clean hydrogen tax credit (as defined in subsection 127.48(1)) of the taxpayer under subsection 127.48(12), (4) Paragraph 53(2)(c) of the Act, as modified by subsection (3), is amended by adding the following after subparagraph (viii.1): (viii.2) an amount equal to that portion of all amounts deemed deducted under subsection 127.49(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 CTM investment tax credit (as defined in subsection 127.49(1)) of the taxpayer under subsection 127.49(8), (5) Subsections (1) and (3) are deemed to have come into force immediately after the expiration of March 27, 2023. (6) Subsections (2) and (4) are deemed to have come into force on January 1, 2024. 11 (1) Paragraph (b) of the description of B of the definition exemption threshold in section 54 of the English version of the Act is replaced by the following: (b) the exemption threshold of the taxpayer in respect of the flow-through share class of property immediately before that earlier time; (2) The portion of paragraph (b) of the definition fresh-start date in section 54 of the English version of the Act before subparagraph (i) is replaced by the following: (b) in the case of any other property that is included in the flow-through share class of property, the day that is the later of 12 Subparagraph 56(1)(a)(iv) of the Act is replaced by the following: (iv) a benefit under Part I, VII.1, VIII or VIII.1 of the Employment Insurance Act , 13 (1) Subparagraph 60(j)(iv) of the Act is amended by striking out “or” at the end of clause (A), by adding “or” at the end of clause (B) and by adding the following after clause (B): (C) to or under a registered retirement income fund under which the taxpayer is the annuitant , as defined in subsection 146.3(1), other than the portion thereof designated for a taxation year for the purposes of paragraph (l), (2) The portion of paragraph 60(n) of the Act before subparagraph (i) is replaced by the following: Repayment of pension or benefits (n) any amount paid by the taxpayer in the year as a repayment (otherwise than because of Part VII of the Employment Insurance Act or section 8 of the Canada Recovery Benefits Act ) of any of the following amounts to the extent that the amount was included in computing the taxpayer’s income, and not deducted in computing the taxpayer’s taxable income, for the year or for a preceding taxation year, namely, (3) Section 60 of the Act is amended by adding the following after paragraph (n.1): Amounts repaid in subsequent years (n.2) any amount paid by the taxpayer in a year (in this paragraph referred to as the “subsequent year”) that is after the year as a repayment of an amount that was included in computing the taxpayer’s income for the year under any of subparagraphs 56(1)(a)(i), (ii), (iv), (vi) or (vii) or paragraph 56(1)(r), to the extent that the amount paid (i) exceeds the taxpayer’s taxable income for the subsequent year (determined without reference to paragraphs (n), (n.1) and (v.1)), and (ii) is not deducted in computing the taxpayer’s taxable income for any other taxation year; (4) Paragraph 60(r) of the Act is repealed. (5) Paragraph 60(v.1) of the Act is replaced by the following: EI benefit repayment (v.1) any benefit repayment payable by the taxpayer under Part VII of the Employment Insurance Act on or before April 30 of the following year, to the extent that the amount was not deductible in computing the taxpayer’s income for any preceding taxation year; (6) Subsection (1) is deemed to have come into force on August 4, 2023. (7) Subsection (3) applies to the 2019 and subsequent taxation years. 14 (1) Paragraph 66(12.73)(e) of the Act is replaced by the following: (e) if a corporation fails to file the statement within the time required or fails in the statement filed to apply the excess fully to reduce one or more purported renunciations, the Minister may at any time reduce the total amount purported to be renounced by the corporation to one or more persons by the amount of the unapplied excess in which case, except for the purpose of Part XII.6, the amount purported to have been so renounced to a person is deemed, after that time, always to have been reduced by the portion of the unapplied excess allocated by the Minister in respect of that person. (2) Subsection (1) is deemed to have come into force on August 4, 2023. 15 (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 127.48(12) in respect of the partnership to be added in computing the investment tax credit or the clean hydrogen tax credit (as defined in subsection 127.48(1)) of the taxpayer in respect of the fiscal period, and (2) Subclause 66.8(1)(a)(ii)(B)(I) of the Act, as enacted by subsection (1), is replaced by the following: (I) the total of all amounts required by subsections 127(8), 127.48(12) and 127.49(8) in respect of the partnership to be added in computing the investment tax credit, the clean hydrogen tax credit (as defined in subsection 127.48(1)) or the CTM investment tax credit (as defined in subsection 127.49(1)) of the taxpayer in respect of the fiscal period, and (3) Subsection (1) is deemed to have come into force immediately after the expiration of March 27, 2023. (4) Subsection (2) is deemed to have come into force on January 1, 2024. 16 (1) The Act is amended by adding the following after section 67.6: Definitions 67.7 (1) The following definitions apply in this section. non-compliant amount , for a taxation year, means the amount determined by the formula A × B ÷ C where A is the total of all amounts that would, if subsection (2) did not apply, be deductible in computing income in the taxation year in respect of the use of a residential property as a short-term rental in the taxation year; B is the number of days in the taxation year that the residential property was a non-compliant short-term rental; and C is the number of days in the taxation year that the residential property was a short-term rental. ( montant non conforme ) non-compliant short-term rental  means, at any time, a short-term rental that is located in a province or municipality that, at that time, (a) does not permit the operation of the short-term rental at the location of the short-term rental; or (b) requires registration, a licence or a permit to operate the short-term rental, and the short-term rental does not comply with all applicable registration, licensing and permit requirements. ( location à court terme non conforme ) residential property  means all or any part of a house, apartment, condominium unit, cottage, mobile home, trailer, houseboat or other property, located in Canada, the use of which is permitted for residential purposes under applicable law. ( bien résidentiel ) short-term rental  means a residential property that is rented or offered for rent for a period of less than 90 consecutive days. ( location à court terme ) Non-deductibility of expenses — short-term rental (2) Notwithstanding any other provision of this Act, no amount is deductible in computing income in respect of a short-term rental for a taxation year, to the extent the amount is a non-compliant amount for the taxation year. Deemed compliance (3) For the purposes of subsection (1), a short-term rental of a person or partnership is deemed not to be a non-compliant short-term rental for the 2024 taxation year of the person or partnership if (a) the short-term rental is located in a province or municipality that requires registration, a licence or a permit to operate as a short-term rental; and (b) the short-term rental complies with all applicable registration, licensing and permit requirements by December 31, 2024. Reassessments (4) Notwithstanding subsections 152(4) to (5), the Minister may make any assessments, reassessments and additional assessments of tax, interest and penalties and any determinations and redeterminations that are necessary to give effect to subsection (2) for any taxation year. (2) Subsection (1) applies to outlays made and expenses incurred after 2023. 17 (1) Subsection 81(1) of the Act is amended by adding the following after paragraph (c): Ship of resident corporations (c.1) the income for the year of a corporation resident in Canada (if this Act were read without reference to subsection 250(4)) earned from international shipping, if that corporation satisfies the conditions set out in paragraphs 250(6)(a) and (b); (2) The portion of subparagraph 81(1)(g.3)(i) of the Act before clause (A) is replaced by the following: (i) the taxpayer is a trust established under (3) Subparagraph 81(1)(g.3)(i) of the Act is amended by striking out “or” at the end of clause (D), by replacing “and” at the end of clause (E) with “or” and by adding the following after clause (E): (F) the Settlement Agreement entered into by His Majesty in right of Canada, dated effective as of April 19, 2023, in respect of the class actions relating to the First Nations Child and Family Services, Jordan’s Principle and Trout Class, and (4) Subsection (1) applies to taxation years that begin on or after December 31, 2023. (5) Subsections (2) and (3) are deemed to have come into force on January 1, 2024. 18 (1) Subsection 87(2) of the Act is amended by adding the following after paragraph (qq): Continuation of corporation (qq.1) for the purposes of section 127.48, the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation; (2) Paragraph 87(2)(qq.1) of the Act, as enacted by subsection (1), is replaced by the following: Continuation of corporation (qq.1) for the purposes of sections 127.48 and 127.49, the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation; (3) Subsection (1) is deemed to have come into force immediately after the expiration of March 27, 2023. (4) Subsection (2) is deemed to have come into force on January 1, 2024. 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 127.48, 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 127.48 and 127.49, 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) 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: “(t) the amount deducted under subsection 127(5) or (6) or 127.48(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) or (viii.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);”. (4) Paragraph 88(2)(c) of the Act, as enacted by subsection (3), 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: “(t) the amount deducted under subsection 127(5) or (6), 127.48(3) or 127.49(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), (viii.1) or (viii.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);”. (5) Subsections (1) and (3) are deemed to have come into force immediately after the expiration of March 27, 2023. (6) Subsections (2) and (4) are deemed to have come into force on January 1, 2024. 20 Section 89 of the Act is amended by adding the following after subsection (14.1): Late designation — transitional ERDTOH (14.2) If, as a consequence of the application of subparagraph (a)(iii) of the definition eligible refundable dividend tax on hand in subsection 129(4), in the opinion of the Minister, the circumstances are such that it would be just and equitable to permit a designation under subsection (14) to be made before the day that is six years after the day on which the designation was required to be made, the designation is deemed to have been made at the time the designation was required to be made. 21 (1) The portion of clause 95(2)(a)(ii)(D) of the Act before subclause (III) is replaced by the following: (D) by another foreign affiliate (referred to in this clause as the “second affiliate”) of the taxpayer — in respect of which the taxpayer has a qualifying interest throughout the year — to the extent that the amounts are paid or payable by the second affiliate, in respect of any particular period in the year, under a legal obligation to pay interest in respect of (I) borrowed money used for the purpose of earning income from property, or (II) an amount payable for property acquired for the purpose of gaining or producing income from property where (2) Subsection (1) is deemed to have come into force on August 4, 2023. 22 (1) Subparagraph 96(2.1)(b)(ii) of the Act is replaced by the following: (ii) the amount required by subsection 127(8) or 127.48(12) in respect of the partnership to be added in computing the investment tax credit or the clean hydrogen tax credit (as defined in subsection 127.48(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 subsection 127(8), 127.48(12) or 127.49(8) in respect of the partnership to be added in computing the investment tax credit, the clean hydrogen tax credit (as defined in subsection 127.48(1)) or the CTM investment tax credit (as defined in subsection 127.49(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, 127.48 and 127.491, 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, 127.48, 127.49 and 127.491, 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, 127.48 and 127.491, 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, 127.48, 127.49 and 127.491, 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) Subsections (1), (3) and (5) are deemed to have come into force immediately after the expiration of March 27, 2023. (8) Subsections (2), (4) and (6) are deemed to have come into force on January 1, 2024. 23 (1) Section 108 of the Act is amended by adding the following after subsection (2): Interest rate hedging agreements (2.1) For the purposes of subparagraph (2)(b)(iv), if an amount included in computing the income of a trust is derived from, or from the disposition of, an agreement that can reasonably be considered to have been made by the trust to reduce its risk from fluctuations in interest rates in respect of debt incurred by the trust to acquire or refinance property described in subparagraph (2)(b)(iii), the amount is deemed to be derived from that property. (2) Subsection (1) applies to taxation years that end after 2021. 24 (1) Clause 111(1)(e)(ii)(A) of the Act is replaced by the following: (A) the amount required by subsection 127(8) or 127.48(12) in respect of the partnership to be added in computing the investment tax credit or the clean hydrogen tax credit (as defined in subsection 127.48(1)) of the taxpayer for the taxation year, (2) Clause 111(1)(e)(ii)(A) of the Act, as enacted by subsection (1), is replaced by the following: (A) the amount required by subsection 127(8), 127.48(12) or 127.49(8) in respect of the partnership to be added in computing the investment tax credit, the clean hydrogen tax credit (as defined in subsection 127.48(1)) or the CTM investment tax credit (as defined in subsection 127.49(1)) of the taxpayer for the taxation year, (3) Subsection (1) is deemed to have come into force immediately after the expiration of March 27, 2023. (4) Subsection (2) is deemed to have come into force on January 1, 2024. 25 (1) Paragraph 116(5)(a) of the French version of the Act is replaced by the following: a) après enquête raisonnable, l’acheteur n’avait aucune raison de croire que la personne ne résidait pas au Canada; (2) Paragraph 116(5.01)(a) of the French version of the Act is replaced by the following: a) après enquête raisonnable, l’acheteur en vient à la conclusion que la personne non-résidente est, aux termes d’un traité fiscal que le Canada a conclu avec un pays donné, un résident de ce pays; (3) The portion of paragraph 116(5.3)(a) of the French version of the Act before subparagraph (i) is replaced by the following: a) le contribuable, sauf si le paragraphe (5.01) s’applique à l’acquisition ou si, après enquête raisonnable, le contribuable n’avait pas de raison de croire que la personne non-résidente n’était pas un résident du Canada, est tenu de payer, au titre de l’impôt prévu par la présente partie pour l’année pour le compte de la personne non-résidente, 50 % de l’excédent du montant visé au sous-alinéa (i) sur le montant visé au sous-alinéa (ii) : 26 (1) The portion of subsection 118.06(2) of the Act before paragraph (a) is replaced by the following: Volunteer firefighter tax credit (2) For the purpose of computing the tax payable under this Part for a taxation year by an individual who performs eligible volunteer firefighting services in the year, there may be deducted the amount determined by multiplying $6,000 by the appropriate percentage for the taxation year if the individual (2) Subsection (1) applies to the 2024 and subsequent taxation years. 27 (1) The portion of subsection 118.07(2) of the Act before paragraph (a) is replaced by the following: Search and rescue volunteer tax credit (2) For the purpose of computing the tax payable under this Part for a taxation year by an individual who performs eligible search and rescue volunteer services in the year, there may be deducted the amount determined by multiplying $6,000 by the appropriate percentage for the taxation year if the individual (2) Subsection (1) applies to the 2024 and subsequent taxation years. 28 (1) Paragraph 118.2(2)(v) of the Act is replaced by the following: (v) to a fertility clinic, or donor bank, in Canada as a fee or other amount paid or payable, to obtain sperm, ova or embryos to enable the conception of a child by the individual, the individual’s spouse or common-law partner or a surrogate mother on behalf of the individual. (2) Subsection (1) is deemed to have come into force on January 1, 2022. 29 (1) Subparagraph 120.2(1)(b)(i) of the Act is replaced by the following: (i) the amount that, but for this section, section 120 and subsection 120.4(2), would be the individual’s tax payable under this Part for the particular year if the individual were not entitled to any deduction under section 126 (2) Paragraph 120.2(3)(b) of the Act is replaced by the following: (b) the amount that, if this Act were read without reference to section 120, would be the individual’s tax payable under this Part for the year if the individual were not entitled to any deduction under section 126, and (3) Subsections (1) and (2) apply to taxation years that begin after December 31, 2023. 30 Paragraph (a) of the definition shared-custody parent in section 122.6 of the English version of the Act is replaced by the following: (a) are not at that time cohabiting spouses or common-law partners of each other, 31 (1) Section 122.62 of the Act is amended by adding the following after subsection (8): Death of child — qualified dependant (9) For the purposes of this Subdivision (other than subsection (4)), a person is deemed to be a qualified dependant at the beginning of a month if (a) the person died in any of the six preceding months; (b) the person’s date of birth was not 18 years or more prior to the beginning of the month; and (c) the person was a qualified dependant immediately prior to their death. Death of child — eligible individual (10) For the purposes of this Subdivision (other than subsection (4)), a person is deemed to be an eligible individual in respect of a qualified dependant at the beginning of a month if (a) that qualified dependant is a qualified dependant at the beginning of that month because of subsection (9); and (b) the person was an eligible individual in respect of the qualified dependant immediately before the qualified dependant’s death. Death of child (11) For the purposes of paragraphs (a) and (b) of the description of E in subsection 122.61(1), if a person is deemed to be a qualified dependant at the beginning of a month because of subsection (9), the person is deemed to be the age at the beginning of that month that the person would have been at the beginning of that month had the person not died. Death of child — disability tax credit (12) For the purposes of paragraph (a) of the description of N in subsection 122.61(1), if a person died on or after July 1 of a particular taxation year and an amount could have been deducted in respect of that person under section 118.3 for that taxation year, an amount is deemed to be deductible under section 118.3 in respect of that person for the immediately following taxation year. (2) Subsection (1) applies in respect of the death of a person that occurs after 2024. 32 (1) Subsection 122.92(1) of the Act is amended by adding the following in alphabetical order: return of income , in respect of an eligible individual for a taxation year, means the eligible individual’s return of income (other than a return of income under subsection 70(2) or 104(23), paragraph 128(2)(e) or subsection 150(4)) that is required to be filed for the taxation year or that would be required to be filed if the eligible individual had tax payable under this Part for the taxation year. ( déclaration de revenu ) (2) Subsection (1) is deemed to have come into force on January 1, 2022. 33 (1) The definition qualifying labour expenditure in subsection 125.6(1) of the Act is replaced by the following: qualifying labour expenditure  of a taxpayer for a taxation year in respect of an eligible newsroom employee, for a taxation year (a) that begins before 2023 and ends after 2022, means the lesser of (i) the amount determined by the formula $85,000 × A ÷ 365 where A is the lesser of 365 and the number of days in the taxation year that are after 2022 during which the taxpayer is a qualifying journalism organization, and (ii) the amount determined by the formula A − B where A is the amount determined by the formula C × D ÷ E where C is the salary or wages payable by the taxpayer to the eligible newsroom employee in respect of the portion of the taxation year throughout which the taxpayer is a qualifying journalism organization, D is the number of days in the taxation year that are after 2022 during which the taxpayer is a qualifying journalism organization, and E is the number of days in the taxation year during which the taxpayer is a qualifying journalism organization, and B is the amount determined by the formula F × G ÷ H where F is the total of all amounts each of which is an amount of assistance that (A) the taxpayer has received, is entitled to receive or can reasonably be expected to receive, in respect of amounts described in C, and (B) has not been repaid before the end of the year pursuant to a legal obligation to do so, G is the number of days in the taxation year that are after 2022 during which the taxpayer is a qualifying journalism organization, and  H is the number of days in the taxation year during which the taxpayer is a qualifying journalism organization; and  (b) that begins after 2022, means the lesser of (i) the amount determined by the formula $85,000 × A ÷ 365 where A is the lesser of 365 and the number of days in the taxation year during which the taxpayer is a qualifying journalism organization, and (ii) the amount determined by the formula A − B where A is the salary or wages payable by the taxpayer to the eligible newsroom employee in respect of the portion of the taxation year throughout which the taxpayer is a qualifying journalism organization, and B is the total of all amounts each of which is an amount of assistance that (A) the taxpayer has received, is entitled to receive or can reasonably be expected to receive, in respect of amounts described in A, and (B) has not been repaid before the end of the year pursuant to a legal obligation to do so. ( dépense de main-d’oeuvre admissible ) (2) Subsection 125.6(1) of the Act is amended by adding the following in alphabetical order: low threshold qualifying labour expenditure  of a taxpayer for a taxation year that begins before 2023 and ends after 2022, in respect of an eligible newsroom employee, means the lesser of (a) the amount determined by the formula $55,000 × A ÷ 365 where A is the lesser of 365 and the number of days in the taxation year that are before 2023 during which the taxpayer is a qualifying journalism organization, and (b) the amount determined by the formula A − B where A is the amount determined by the formula C × D ÷ E where C is the salary or wages payable by the taxpayer to the eligible newsroom employee in respect of the portion of the taxation year throughout which the taxpayer is a qualifying journalism organization, D is the number of days in the taxation year that are before 2023 during which the taxpayer is a qualifying journalism organization, and E is the number of days in the taxation year during which the taxpayer is a qualifying journalism organization, and B is the amount determined by the formula F × G ÷ H where F is the total of all amounts each of which is an amount of assistance that (i) the taxpayer has received, is entitled to receive or can reasonably be expected to receive, in respect of amounts described in C, and (ii) has not been repaid before the end of the year pursuant to a legal obligation to do so, G is the number of days in the taxation year that are before 2023 during which the taxpayer is a qualifying journalism organization, and  H is the number of days in the taxation year during which the taxpayer is a qualifying journalism organization. ( seuil inférieur de dépense de main-d’oeuvre admissible ) (3) Subsections 125.6(2) and (2.1) of the Act are replaced by the following: Tax credit (2) A taxpayer (other than a partnership) that is a qualifying journalism organization at any time in a taxation year and that files a prescribed form containing prescribed information with its return of income for the year is deemed to have, on its balance-due day for the year, paid on account of its tax payable under this Part for the year (a) if the year begins before 2023 and ends after 2022, an amount determined by the formula 0.25 × A + 0.35 × B − C where A is the total of all amounts each of which is a low threshold qualifying labour expenditure of the qualifying journalism organization for the year in respect of an eligible newsroom employee, B is the total of all amounts each of which is a qualifying labour expenditure of the qualifying journalism organization for the year in respect of an eligible newsroom employee, and C is the amount received by the taxpayer from the Aid to Publishers component of the Canada Periodical Fund in the year; (b) if the year begins after 2022 and ends before 2027, an amount determined by the formula 0.35 × A − B where A is the total of all amounts each of which is a qualifying labour expenditure of the qualifying journalism organization for the year in respect of an eligible newsroom employee, and B is the amount received by the taxpayer from the Aid to Publishers component of the Canada Periodical Fund in the year; (c) if the year begins before 2027 and ends after 2026, an amount determined by the formula 0.35 × A + 0.25 × B − C where A is the amount determined by the formula D × E ÷ F where D is the total of all amounts each of which is a qualifying labour expenditure of the qualifying journalism organization for the year in respect of an eligible newsroom employee, E is the number of days in the taxation year that are before 2027 during which the taxpayer is a qualifying journalism organization, and F is the number of days in the taxation year during which the taxpayer is a qualifying journalism organization, B is the amount determined by the formula G × H ÷ I where G is the total of all amounts each of which is a qualifying labour expenditure of the qualifying journalism organization for the year in respect of an eligible newsroom employee, H is the number of days in the taxation year that are after 2026 during which the taxpayer is a qualifying journalism organization, and I is the number of days in the taxation year during which the taxpayer is a qualifying journalism organization, and C is the amount received by the taxpayer from the Aid to Publishers component of the Canada Periodical Fund in the year; and (d) if the year begins after 2026, an amount determined by the formula 0.25 × A − B where A is the total of all amounts each of which is a qualifying labour expenditure of the qualifying journalism organization for the year in respect of an eligible newsroom employee, and B is the amount received by the taxpayer from the Aid to Publishers component of the Canada Periodical Fund in the year. Partnership — tax credit (2.1) If a taxpayer (other than a partnership) is a member of a partnership (other than a specified member of the partnership) at the end of a fiscal period of the partnership that ends in a taxation year of the taxpayer, the partnership is a qualifying journalism organization at any time in that fiscal period and the partnership files an information return in prescribed form containing prescribed information for that fiscal period, then the taxpayer is deemed to have, on the taxpayer’s balance-due day for the taxation year, paid on account of the taxpayer’s tax payable under this Part for the taxation year (a) if the fiscal period begins before 2023 and ends after 2022, an amount determined by the formula (0.25 × A + 0.35 × B − C) × D ÷ E where A is the total of all amounts each of which is a low threshold qualifying labour expenditure of the qualifying journalism organization for the fiscal period in respect of an eligible newsroom employee, B is the total of all amounts each of which is a qualifying labour expenditure of the qualifying journalism organization for the fiscal period in respect of an eligible newsroom employee, C is the amount received by the qualifying journalism organization from the Aid to Publishers component of the Canada Periodical Fund in the fiscal period, D is the specified proportion of the taxpayer for the fiscal period, and E is the total of all specified proportions of members of the partnership for the fiscal period, other than members that are partnerships or specified members of the partnership; (b) if the fiscal period begins after 2022 and ends before 2027, an amount determined by the formula (0.35 × A − B) × C ÷ D where A is the total of all amounts each of which is a qualifying labour expenditure of the qualifying journalism organization for the fiscal period in respect of an eligible newsroom employee, B is the amount received by the qualifying journalism organization from the Aid to Publishers component of the Canada Periodical Fund in the fiscal period, C is the specified proportion of the taxpayer for the fiscal period, and D is the total of all specified proportions of members of the partnership for the fiscal period, other than members that are partnerships or specified members of the partnership; (c) if the fiscal period begins before 2027 and ends after 2026, an amount determined by the formula (0.35 × A + 0.25 × B − C) × D ÷ E where A is the amount determined by the formula F × G ÷ H where F is the total of all amounts each of which is a qualifying labour expenditure of the qualifying journalism organization for the fiscal period in respect of an eligible newsroom employee, G is the number of days in the fiscal period that are before 2027 during which the partnership is a qualifying journalism organization, and H is the number of days in the fiscal period during which the partnership is a qualifying journalism organization, B is the amount determined by the formula I × J ÷ K where I is the total of all amounts each of which is a qualifying labour expenditure of the qualifying journalism organization for the fiscal period in respect of an eligible newsroom employee, J is the number of days in the fiscal period that are after 2026 during which the partnership is a qualifying journalism organization, and K is the number of days in the fiscal period during which the partnership is a qualifying journalism organization, C is the amount received by the qualifying journalism organization from the Aid to Publishers component of the Canada Periodical Fund in the fiscal period, D is the specified proportion of the taxpayer for the fiscal period, and E is the total of all specified proportions of members of the partnership for the fiscal period, other than members that are partnerships or specified members of the partnership; and (d) if the fiscal period begins after 2026, an amount determined by the formula (0.25 × A − B) × C ÷ D where A is the total of all amounts each of which is a qualifying labour expenditure of the qualifying journalism organization for the fiscal period in respect of an eligible newsroom employee, B is the amount received by the qualifying journalism organization from the Aid to Publishers component of the Canada Periodical Fund in the fiscal period, C is the specified proportion of the taxpayer for the fiscal period, and D is the total of all specified proportions of members of the partnership for the fiscal period, other than members that are partnerships or specified members of the partnership. (4) Subsections (1) to (3) are deemed to have come into force on January 1, 2023. 34 (1) Paragraph (a) of the definition flow-through mining expenditure in subsection 127(9) of the Act is replaced by the following: (a) that is a Canadian exploration expense incurred by a corporation after March 2024 and before 2026 (including, for greater certainty, an expense that is deemed by subsection 66(12.66) to be incurred before 2026) in conducting mining exploration activity from or above the surface of the earth for the purpose of determining the existence, location, extent or quality of a mineral resource described in paragraph (a) or (d) of the definition mineral resource in subsection 248(1), (2) Paragraphs (c) and (d) of the definition flow-through mining expenditure in subsection 127(9) of the Act are replaced by the following: (c) an amount in respect of which is renounced in accordance with subsection 66(12.6) by the corporation to the taxpayer (or a partnership of which the taxpayer is a member) under an agreement described in that subsection and made after March 2024 and before April 2025, (d) that is not an expense that was renounced under subsection 66(12.6) to the corporation (or a partnership of which the corporation is a member), unless that renunciation was under an agreement described in that subsection and made after March 2024 and before April 2025, and (3) 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 an excluded loan (as defined in subsection 12(11)) or as a deduction under subsection (5) or (6); ( aide gouvernementale ) (4) The definition government assistance in subsection 127(9) of the Act, as enacted by subsection (3), 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 an excluded loan (as defined in subsection 12(11)) or as a deduction under subsection (5) or (6) or a deemed payment on account of tax payable under subsection 127.48(2); ( aide gouvernementale ) (5) The definition government assistance in subsection 127(9) of the Act, as enacted by subsection (4), 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 an excluded loan (as defined in subsection 12(11)) or as a deduction under subsection (5) or (6) or a deemed payment on account of tax payable under subsection 127.48(2) or 127.49(2); ( aide gouvernementale ) (6) Subsections (1) and (2) apply in respect of expenses renounced under a flow-through share agreement entered into after March 2024. (7) Subsection (3) is deemed to have come into force on January 1, 2020, and applies to loans made after December 31, 2019. (8) Subsection (4) is deemed to have come into force immediately after the expiration of March 27, 2023. (9) Subsection (5) is deemed to have come into force on January 1, 2024. 35 The Act is amended by adding the following after section 127.42: Definitions 127.421 (1) The following definitions apply in this section. designated province  means a province specified by the Minister of Finance for a calendar year. ( province déterminée ) fuel return specified , for a designated province for a calendar year, means the amount specified by the Minister of Finance for a person employed by a corporation for the designated province for the calendar year. ( montant lié aux carburants spécifié ) person employed , by a corporation for a calendar year, means a person who was at any time in the calendar year employed by the corporation and in respect of whom the corporation issued (or a payroll service provider issued on behalf of the corporation) a statement of remuneration paid. ( personne employée ) 2023 business number  means the business number of a corporation which the corporation used to make remittances for employees for the corporation’s last taxation year ending in 2023. ( numéro d’entreprise 2023 ) Deemed amount 2019-2023 (2) A corporation that files, on or before July 15, 2024, a return of income for a taxation year ending in 2023 (other than a final return on dissolution) is deemed to have paid on a date specified by the Minister of Finance, on account of tax payable under this Part for that taxation year, the total of all amounts, each of which is an amount, for each designated province, for each calendar year that is 2019, 2020, 2021, 2022 and 2023, determined by the formula A × B × C where A is the fuel return specified for the designated province, for the calendar year; B is (a) if the total number of persons each of whom was a person employed by the corporation in a province at any time in the calendar year exceeds 499, nil, and (b) in any other case, the total number of persons, each of whom was a person employed by the corporation in the designated province in the calendar year; and C is (a) if the corporation was a Canadian-controlled private corporation at all times in the taxation year ending in 2023, 1, and (b) in any other case, nil. Deemed amount after 2023 (3) A corporation that files a return of income for a particular taxation year ending in a calendar year after 2023 (other than a final return on dissolution) is, if the return is filed on or before July 15 of the following calendar year, deemed to have paid on its balance-due day for the year, on account of tax payable under this Part for the particular taxation year, the total of all amounts, each of which is an amount, for each designated province for the calendar year, determined by the formula A × B × C where A is the fuel return specified for the designated province, for the calendar year; B is (a) if the total number of persons each of whom was a person employed by the corporation in a province at any time in the calendar year exceeds 499, nil, and (b) in any other case, the total number of persons, each of whom was a person employed by the corporation in the designated province in the calendar year; and C is (a) if the corporation was a Canadian-controlled private corporation at all times in the particular taxation year, 1, and (b) in any other case, nil. Authority to specify (4) For the purposes of this section, the Minister of Finance may specify for a calendar year (a) the designated provinces; and (b) the fuel return specified for a designated province. Amount not specified (5) For the purposes of this section, if the Minister of Finance does not specify a fuel return specified for a designated province for a calendar year under paragraph (4)(b), the fuel return specified for the designated province for the calendar year is deemed to be nil. Assistance received (6) For the purposes of this Act, an amount deemed by this section to have been paid on account of tax payable for a taxation year is assistance received by the taxpayer from a government in the taxation year in which the assistance is received. Deemed rebate in respect of fuel charges (7) An amount for a designated province included in the total of all amounts deemed by this section to have been paid on account of tax payable for a taxation year is deemed to have been paid during the taxation year as a rebate in respect of charges levied under Part 1 of the Greenhouse Gas Pollution Pricing Act in respect of the designated province. Predecessor corporation (8) For the purposes of subsection (2), where there has been an amalgamation or merger of two or more corporations before 2023, the corporation filing a return of income in 2023 is deemed to be the same corporation as and a continuation of each predecessor corporation that was registered with the Minister to make remittances required under section 153 under the corporation’s 2023 business number. Predecessor corporation (9) For the purposes of subsections (2) and (3), the number of persons employed by a corporation in a calendar year after 2022 is deemed to be nil in that year if the corporation is formed by an amalgamation or merger in that calendar year. Province of employment (10) For the purposes of this section, if a person is employed by the same corporation in more than one province in a calendar year, the person is deemed to be employed throughout the calendar year by that corporation in the province in respect of which the person has received the highest amount of remuneration paid by the corporation and is deemed not to be employed in any other province in the calendar year. Deemed taxation year (11) For the purposes of subsection (3), if a corporation has more than one taxation year ending in the same calendar year, the particular taxation year is the first taxation year that ends in that calendar year. 36 (1) The heading before section 127.43 of the Act is repealed. (2) Subsection (1) is deemed to have come into force on January 1, 2022. 37 (1) The Act is amended by adding the following before Division E.1 of Part I: Definitions 127.48 (1) The following definitions apply in this section. actual carbon intensity  means the carbon intensity of hydrogen that is produced by a qualified clean hydrogen project of a taxpayer, based on the actual inputs to the production of hydrogen and actual emissions from the production of hydrogen by the project. ( intensité carbonique réelle ) average actual carbon intensity  means, for the compliance period of a clean hydrogen project, the number determined by the formula  ((A × B) + (C × D) + (E × F) + (G × H) + (I × J)) ÷ K where A is the actual carbon intensity of the project for the first operating year of the compliance period; B is the quantity, in kilograms, of hydrogen produced by the project in the first operating year of the compliance period; C is the actual carbon intensity of the project for the second operating year of the compliance period; D is the quantity, in kilograms, of hydrogen produced by the project in the second operating year of the compliance period; E is the actual carbon intensity of the project for the third operating year of the compliance period; F is the quantity, in kilograms, of hydrogen produced by the project in the third operating year of the compliance period; G is the actual carbon intensity of the project for the fourth operating year of the compliance period; H is the quantity, in kilograms, of hydrogen produced by the project in the fourth operating year of the compliance period; I is the actual carbon intensity of the project for the fifth operating year of the compliance period; J is the quantity, in kilograms, of hydrogen produced by the project in the fifth operating year of the compliance period; and K is the total quantity, in kilograms, of hydrogen produced by the project during the compliance period. ( intensité carbonique réelle moyenne ) 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 ) carbon dioxide equivalent  means the carbon dioxide emissions that would be required to produce a warming effect equivalent to the emissions of any specified greenhouse gas, as determined in accordance with the Clean Hydrogen Investment Tax Credit – Carbon Intensity Modelling Guidance Document published by the Government of Canada over an assessment period of 100 years. ( équivalent en dioxyde de carbone ) carbon intensity  means the quantity in kilograms of carbon dioxide equivalent per kilogram of hydrogen produced. ( intensité carbonique ) 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 ) CFR carbon intensity  means carbon intensity as defined in subsection 1(1) of the Clean Fuel Regulations . ( intensité carbonique selon le RCP ) clean ammonia  means ammonia produced from clean hydrogen. ( ammoniac propre ) clean ammonia equipment  means equipment that is used solely for the purpose of producing ammonia, including equipment for (a) converting hydrogen into ammonia; (b) heat recovery and conversion; (c) nitrogen generation; (d) feed storage (unless the feed is stored hydrogen) and feed compression; and (e) on-site refrigeration, transportation and storage of ammonia. ( matériel pour ammoniac propre ) clean hydrogen  means hydrogen produced, whether solely or in conjunction with other gases, that has a carbon intensity of less than four. ( hydrogène propre ) clean hydrogen project  of a taxpayer means a project involving (a) the operation of eligible clean hydrogen property; (b) the production of clean hydrogen; and (c) if applicable, the production of clean ammonia that uses a feedstock of clean hydrogen produced by the project. ( projet pour l’hydrogène propre ) clean hydrogen project plan  means a plan for a clean hydrogen project of a taxpayer that (a) includes a front-end engineering design study (or an equivalent study as determined by the Minister of Natural Resources) for the project; (b) sets out the expected sources of electricity to be consumed in connection with the project, including sources described in any eligible power purchase agreements; (c) sets out the expected carbon intensity of the hydrogen to be produced by the project (i) determined in accordance with subsection (6), and (ii) supported by a report prepared by a qualified validation firm in respect of the project that includes attestations by the firm that (A) the assumptions in the modelling of the expected carbon intensity are reasonable, and (B) the expected carbon intensity has been determined in accordance with the Clean Hydrogen Investment Tax Credit – Carbon Intensity Modelling Guidance Document published by the Government of Canada; (d) if the project is intended to produce clean ammonia, demonstrates (i) that the project can reasonably be expected to have sufficient hydrogen production capacity to satisfy the needs of the taxpayer’s ammonia production facility, and (ii) if the taxpayer’s hydrogen production facility and its ammonia production facility are not co-located, the feasibility of transporting hydrogen between the facilities; (e) contains any information required in guidelines published by the Minister of Natural Resources, including the Clean Hydrogen Investment Tax Credit – Validation and Verification Guidance Document ; and (f) is filed by the taxpayer with the Minister of Natural Resources, in the form and manner determined by the Minister of Natural Resources. ( plan de projet pour l’hydrogène propre ) clean hydrogen 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 an eligible clean hydrogen property that is acquired by the taxpayer in the year; and (b) the total of all amounts required by subsection (12) to be added in computing the taxpayer’s clean hydrogen tax credit at the end of the year. ( crédit d’impôt pour l’hydrogène propre ) compliance period  in respect of a clean hydrogen project of a taxpayer, means the period of time beginning on the first day of the compliance period of the project and ending on the last day of the fifth operating year of the project. ( période de conformité ) dual-use electricity and heat equipment  means equipment that is part of a clean hydrogen project (excluding electricity generation equipment that supports the project indirectly by way of an electrical utility grid), that supports the production of hydrogen from eligible hydrocarbons and that (a) generates electrical energy, heat energy or a combination of electrical and heat energy, and more than 50% of either the electrical energy or heat energy that is expected to be produced over the first 20 years of the project’s operations, based on the most recent clean hydrogen project plan, is expected to support (i) a CCUS project, unless the equipment uses fossil fuels and emits carbon dioxide that is not subject to capture by a CCUS process, or (ii) a qualified clean hydrogen project, unless the equipment uses fossil fuels and emits carbon dioxide that is not subject to capture by a CCUS process; or (b) is equipment that directly transmits electrical energy from equipment described in paragraph (a) to a qualified clean hydrogen project and more than 50% of the electrical energy to be transmitted by the equipment over the first 20 years of the project’s operations, based on the most recent clean hydrogen project plan, is expected to support the CCUS project or qualified clean hydrogen project. ( matériel pour électricité et chaleur à double usage ) dual-use hydrogen and ammonia equipment  means equipment that is part of a clean hydrogen project and that is used for the generation of oxygen or nitrogen to be used all or substantially all in hydrogen and ammonia production for the project. ( matériel pour hydrogène et ammoniac à double usage ) eligible clean hydrogen property  means property, other than excluded property, that (a) is acquired by a qualifying taxpayer and becomes available for use in respect of a qualified clean hydrogen project of the taxpayer in Canada on or after March 28, 2023, determined without reference to subsection (5); (b) has not been used, or acquired for use or lease, by any person or partnership for any purpose whatever before it was acquired by the taxpayer; and (c) is property situated in Canada (i) that is used all or substantially all to produce hydrogen through electrolysis of water, including electrolysers, rectifiers, purification equipment, water treatment and conditioning equipment and equipment used for hydrogen compression and storage, (ii) that is used all or substantially all to produce hydrogen from eligible hydrocarbons, including pre-reformers, auto-thermal reformers, steam methane reformers, pre-heating equipment, syngas coolers, shift reactors, purification equipment, fired heaters, water treatment and conditioning equipment, equipment used in hydrogen compression and storage of hydrogen, oxygen production equipment and methanators, (iii) that is (A) clean ammonia equipment, (B) dual-use electricity and heat equipment, (C) dual-use hydrogen and ammonia equipment, or (D) project support equipment, (iv) that is physically and functionally integrated with equipment described in any of subparagraphs (i) to (iii) and that is ancillary equipment used solely to support the functioning of equipment described in any of subparagraphs (i) to (iii) within a hydrogen or ammonia production process as part of (A) an electrical system, (B) a feed supply system, (C) a fuel supply system, (D) a liquid delivery and distribution system, (E) a cooling system, (F) a process material storage and handling and distribution system, (G) a process venting system, (H) a process waste management system, or (I) a utility air or nitrogen distribution system, (v) that is equipment used for system safety and integrity, or as part of a control or monitoring system, solely to support equipment described in any of subparagraphs (i) to (iv), or (vi) that is property used solely to convert another property that would not otherwise be described in subparagraphs (i) to (v) if the conversion causes the other property to satisfy the description in any of subparagraphs (i) to (v). ( bien admissible pour l’hydrogène propre ) eligible electricity generation source  means, at any time, an electricity generation source that is (a) wind; (b) solar; (c) hydro; (d) nuclear; or (e) geothermal or tidal, if, at that time, (i) a technology-specific input carbon intensity for the generation source is available in the Fuel LCA Model, and (ii) guidance in respect of the generation source is included in the Clean Hydrogen Investment Tax Credit – Carbon Intensity Modelling Guidance Document published by the Government of Canada. ( source admissible de production d’électricité ) eligible hydrocarbon  means, at any time, (a) natural gas; (b) a substance sourced all or substantially all from raw natural gas; (c) an eligible renewable hydrocarbon; or (d) a substance that is (i) a by-product from processing one or more substances described in paragraph (a) or (b), and (ii) included in the Clean Hydrogen Investment Tax Credit – Carbon Intensity Modelling Guidance Document published by the Government of Canada at that time. ( hydrocarbure admissible ) eligible pathway  means the production of hydrogen (a) from electrolysis of water; or (b) from the reforming or partial oxidation of eligible hydrocarbons, with carbon dioxide captured using a CCUS process. ( méthode admissible ) eligible power purchase agreement  means an agreement or other arrangement in writing that (a) allows, or will allow, a taxpayer to purchase electricity from an eligible electricity generation source (including incremental nameplate capacity) that (i) first commenced electricity generation on or after both (A) November 3, 2022, and (B) the earlier of the day that is (I) 24 months before the taxpayer’s first clean hydrogen project plan is filed with the Minister of Natural Resources, and (II) 36 months before the day on which hydrogen is first produced by the relevant clean hydrogen project of the taxpayer, and (ii) is located in (A) the same province as the clean hydrogen project and is connected to the electricity grid of that province, (B) the exclusive economic zone of Canada and is directly connected to the grid of the province in which the project is located, or (C) another province that has a provincial grid that is directly connected to the grid of the province in which the project is located, if the taxpayer has arranged for the necessary interprovincial transmission; (b) grants, or will grant, the taxpayer the sole and exclusive right to the environmental attributes associated with the electricity; and (c) is entered into by the taxpayer for the primary purpose of operating the taxpayer’s clean hydrogen project during all or any portion of the first 20 years of the project’s operations. ( entente pour l’achat d’électricité admissible ) eligible renewable hydrocarbon , in respect of a taxpayer, means a substance (a) that is produced from non-fossil carbon; (b) in respect of which a CFR carbon intensity can be determined under the Clean Fuel Regulations ; (c) that is included in the Clean Hydrogen Investment Tax Credit – Carbon Intensity Modelling Guidance Document published by the Government of Canada at the time that the taxpayer files its most recent clean hydrogen project plan with the Minister of Natural Resources; (d) that is sourced from a facility that first commenced production of the substance on or after both (i) November 3, 2022, and (ii) the earlier of the day that is (A) 24 months before the taxpayer’s first clean hydrogen project plan is filed with the Minister of Natural Resources, and (B) 36 months before the day on which hydrogen is first produced by the relevant clean hydrogen project of the taxpayer; (e) that, if acquired by the taxpayer under an agreement, the agreement grants, or will grant, the taxpayer the sole and exclusive right to the environmental attributes associated with the substance; and (f) that is acquired or produced by the taxpayer for the sole purpose of operating the clean hydrogen project during all or any portion of the first 20 years of the project’s operations. ( hydrocarbure renouvelable admissible ) excluded property  means property that is  (a) used solely (i) to support a CCUS project, or (ii) for using captured carbon in industrial production (including for enhanced oil recovery); (b) equipment used for the off-site transmission, transportation or distribution of hydrogen or ammonia; (c) equipment used to prepare hydrogen for transport, including liquefaction equipment and equipment used to compress hydrogen to levels suitable for transportation; (d) an automotive vehicle or related refuelling or charging equipment; (e) a building or other structure; (f) construction equipment, furniture or office equipment; or (g) equipment used for off-site storage. ( bien exclu ) expected carbon intensity  means the carbon intensity of hydrogen that is expected to be produced by a particular clean hydrogen project of a taxpayer, as documented in the taxpayer’s clean hydrogen project plan in respect of the project. ( intensité carbonique attendue ) first day of the compliance period  means, in respect of a clean hydrogen project of a taxpayer, (a) unless paragraph (b) or (c) applies, the particular day that is 120 days after the day on which hydrogen is first produced by the project; (b) if the taxpayer files an election in prescribed form and manner with the Minister with its return of income for the taxation year that includes the particular day referred to in paragraph (a), the day that is one year after the particular day; or (c) if the taxpayer has filed an election under paragraph (b) and files a second election in prescribed form and manner with the Minister with its return of income for the taxation year that includes the day referred to in paragraph (b), the day that is two years after the particular day referred to in paragraph (a). ( premier jour de la période de conformité ) Fuel LCA Model  means the Government of Canada’s Fuel Life Cycle Assessment Model that is published by the Minister of the Environment. ( modèle ACV des combustibles ) government assistance  has the same meaning as in subsection 127(9). ( aide gouvernementale ) 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 (i) the storage of captured carbon in a geological formation located in a jurisdiction within Canada or the United States that has environmental laws and enforcement governing the permanent storage of captured carbon, or (ii) the use of captured carbon in producing concrete in Canada or the United States using a process that mineralizes and permanently stores at least 60% of the captured carbon that is injected into the concrete. ( utilisation non admissible ) input carbon intensity  in relation to a fuel, energy source or material input, means the quantity in kilograms of carbon dioxide equivalent per unit of fuel, energy source or material input that is released over the life cycle of that fuel, energy source or material input. ( intensité carbonique entrante ) non-government assistance  has the same meaning as in subsection 127(9). ( aide non gouvernementale ) non-hydrogen or ammonia 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 an eligible clean hydrogen property , determined without reference to paragraph (b) of that definition. ( utilisation autre que pour l’hydrogène ou l’ammoniac ) operating year  means each cumulative 365-day period, the first of which begins on the first day of the compliance period of a taxpayer’s clean hydrogen project, disregarding any period during which the project is not operating. ( année d’exploitation ) preliminary clean hydrogen work activity  means an activity that is preliminary to the acquisition, construction, fabrication or installation by or on behalf of a taxpayer of eligible clean hydrogen property in respect of the taxpayer’s clean hydrogen 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 eligible clean hydrogen property; (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 pour l’hydrogène propre ) project support equipment  means equipment that directly supports a qualified clean hydrogen project by (a) transmitting electrical energy from on-site electrical generation equipment directly to the project; (b) distributing electrical energy or heat energy; or (c) delivering, collecting, recovering, treating or recirculating water, or a combination of those activities. ( matériel de soutien du projet ) qualified clean hydrogen project  means a clean hydrogen project of a taxpayer, as described in the taxpayer’s clean hydrogen project plan, where the Minister of Natural Resources has confirmed in writing that (a) the hydrogen will be produced from an eligible pathway; (b) the expected carbon intensity contained in the taxpayer’s most recent clean hydrogen project plan (i) is determined in accordance with subsection (6), and (ii) can reasonably be expected to be achieved based on the project design; and (c) if the project is intended to produce clean ammonia, the taxpayer has demonstrated (i) that the project can reasonably be expected to have sufficient hydrogen production capacity to satisfy the needs of the taxpayer’s ammonia production facility, and (ii) if the taxpayer’s hydrogen production facility and its ammonia production facility are not co-located, the feasibility of transporting hydrogen between the facilities. ( projet admissible pour l’hydrogène propre ) qualified validation firm  means, in respect of a clean hydrogen project of a taxpayer, an engineer or engineering firm that (a) is registered and in good standing with a professional association that has the authority or recognition by law of a jurisdiction in Canada to regulate the profession of engineering in (i) the jurisdiction where the project is located, or (ii) if there is no professional association in the jurisdiction described in subparagraph (i), a jurisdiction in Canada where a professional association regulates the profession of engineering; (b) has appropriate insurance coverage; (c) has expertise in modelling using the Fuel LCA Model and engineering expertise in production processes for hydrogen and, if applicable, ammonia; (d) at all times, is independent of, deals at arm’s length with and is not an employee of the taxpayer; and (e) meets the requirements described in guidelines published by the Minister of Natural Resources, including the Clean Hydrogen Investment Tax Credit – Validation and Verification Guidance Document . ( firme admissible de validation ) qualified verification firm  means, in respect of a clean hydrogen project of a taxpayer, an individual or firm that (a) is either (i) an engineer or an engineering firm that is registered and in good standing with a professional association that has the authority or recognition by law of a jurisdiction in Canada to regulate the profession of engineering in (A) the jurisdiction where the project is located, or (B) if there is no professional association in the jurisdiction described in clause (A), a jurisdiction in Canada where a professional association regulates the profession of engineering, or (ii) a verification body accredited and in good standing under the Clean Fuel Regulations ; (b) has appropriate insurance coverage; (c) has expertise in life-cycle analysis of greenhouse gas emissions; (d) at all times, is independent of, deals at arm’s length with and is not an employee of the taxpayer; (e) is not a qualified validation firm in respect of the project; and (f) meets the requirements described in guidelines published by the Minister of Natural Resources, including the Clean Hydrogen Investment Tax Credit – Validation and Verification Guidance Document . ( firme admissible de vérification ) qualifying taxpayer  means a taxable Canadian corporation. ( contribuable admissible ) specified greenhouse gas  means (a) carbon dioxide; (b) methane; (c) nitrous oxide; (d) sulphur hexafluoride; and (e) any other greenhouse gases listed in the Fuel LCA Model and included in the Clean Hydrogen Investment Tax Credit – Carbon Intensity Modelling Guidance Document published by the Government of Canada at the time that a taxpayer files its most recent clean hydrogen project plan with the Minister of Natural Resources. ( gaz à effet de serre déterminé ) specified percentage  means (a) in respect of the capital cost of an eligible clean hydrogen property (other than equipment described in paragraph (b)) that is acquired by a qualifying taxpayer for use in a clean hydrogen project, (i) if the expected carbon intensity of the hydrogen to be produced by the project is less than 0.75 and the property is acquired (A) before 2034, 40%, (B) in 2034, 20%, and (C) after 2034, 0%, (ii) if the expected carbon intensity of the hydrogen to be produced by the project is 0.75 or greater and less than two and the property is acquired (A) before 2034, 25%, (B) in 2034, 12.5%, and (C) after 2034, 0%, (iii) if the expected carbon intensity of the hydrogen to be produced by the project is two or greater and less than four and the property is acquired (A) before 2034, 15%, (B) in 2034, 7.5%, and (C) after 2034, 0%, and (iv) if the expected carbon intensity of the hydrogen to be produced by the project is four or greater, 0%; and (b) in respect of the capital cost of eligible clean hydrogen property that is clean ammonia equipment or equipment described in any of subparagraphs (c)(iv) to (vi) of the definition eligible clean hydrogen property in this subsection that is used solely in connection with clean ammonia equipment acquired by a qualifying taxpayer for use in a clean hydrogen project, (i) subject to subparagraph (ii), if the equipment is acquired (A) before 2034, 15%, (B) in 2034, 7.5%, and (C) after 2034, 0%, (ii) if the expected carbon intensity of the hydrogen to be produced by the project and used in the production of ammonia is four or greater, 0%. ( pourcentage déterminé ) Clean hydrogen 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 hydrogen tax credit for the year. Deemed deduction (3) For the purposes of this section, paragraph 12(1)(t), subsection 13(7.1), variable I of the definition undepreciated capital cost in subsection 13(21), subsection 53(2) and sections 127.49 and 129, 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. Time limit for application (4) 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 the prescribed form containing prescribed information described in subsection (2) in respect of the amount on or before the later of December 31, 2025 and the day that is one year after the taxpayer’s filing-due date for the year and, if the prescribed form is filed after the taxpayer’s filing-due date for the year, no payment by the taxpayer is deemed to arise under that subsection until the prescribed form containing prescribed information has been filed with the Minister. Time of acquisition (5) For the purpose of this section, eligible clean hydrogen property is deemed not to have been acquired before the property becomes available for use by the taxpayer, determined without reference to paragraphs 13(27)(c) and (28)(d). Calculation of carbon intensity (6) For the purposes of calculating the carbon intensity of hydrogen produced and to be produced by a clean hydrogen project of a taxpayer, (a) the most recent Fuel LCA Model at the time of filing by the taxpayer of the most recent related clean hydrogen project plan with the Minister of Natural Resources shall be used, unless, at the time of filing any compliance report under subsection (16), the taxpayer elects to use a subsequent version of the Fuel LCA Model in calculating the actual carbon intensity of the project; (b) in applying the Fuel LCA Model, an assessment of emissions from the production of hydrogen by the project and upstream emissions from the production of inputs to the hydrogen-production process shall be taken into account; (c) the quantity of hydrogen produced by the project is to be adjusted to take into account any hydrogen that is consumed in the production process; (d) if the taxpayer produces hydrogen from eligible hydrocarbons, any captured carbon that is subject to an ineligible use is deemed not to be captured; (e) if, in connection with the project, the taxpayer generates or purchases, or proposes to generate or purchase, electricity that is (i) generated, or to be generated, by the taxpayer from (A) an eligible electricity generation source, the contribution of the electricity to carbon intensity is to correspond with the input carbon intensity of the technology-specific electricity in the Fuel LCA Model, (B) on-site generation equipment that converts hydrogen, heat recovered from the taxpayer’s hydrogen or ammonia production equipment or eligible hydrocarbons (with carbon dioxide captured using a CCUS process) into electricity that supports the production of hydrogen from eligible hydrocarbons, the contribution of the electricity to carbon intensity is to be modelled as part of the project, (C) a generator used for startup or emergency backup operations, the contribution of the electricity to carbon intensity is to be modelled as part of the project, and (D) a generation source other than as described in any of clauses (A) to (C), the carbon intensity of the project is deemed to be greater than 4.5, (ii) purchased, or to be purchased, pursuant to an eligible power purchase agreement, (A) the contribution of the electricity to carbon intensity is to correspond with the input carbon intensity of the technology-specific electricity in the Fuel LCA Model, and (B) the contribution of the electricity to expected carbon intensity is to be calculated in proportion to the number of years for which the agreement will be in place during the first 20 years of the project’s operations, and (iii) otherwise sourced, or to be sourced, from a provincial grid, the contribution to carbon intensity of the net positive quantity of the electricity (after subtracting any electricity purchased by the taxpayer under an eligible power purchase agreement or generated by the taxpayer in respect of the project that is, in either case, transmitted to the grid by the taxpayer) is to be based on the input carbon intensity of the provincial grid in the Fuel LCA Model; (f) in calculating the quantity of electricity described in paragraph (e), if the sum of the quantities of electricity from sources described in subparagraphs (e)(i) and (ii) exceeds the total electricity consumed or to be consumed by the project, then the electricity consumed or to be consumed by the project is deemed to be generated (i) first, from the source described in subparagraph (e)(i), and (ii) second, from the source described in subparagraph (e)(ii) to the extent of any excess; (g) if the project uses, or proposes to use, eligible hydrocarbons for the purpose of producing hydrogen, (i) where the eligible hydrocarbon is an eligible renewable hydrocarbon in respect of the taxpayer, (A) the contribution of that eligible renewable hydrocarbon to carbon intensity is to be based on the most recent CFR carbon intensity that is determined under the Clean Fuel Regulations , adjusted as necessary, and (B) the contribution of that eligible renewable hydrocarbon to expected carbon intensity is to be calculated in proportion to the number of years for which that hydrocarbon will be used during the first 20 years of the project’s operations, and (ii) in any other case, the input carbon intensity of the relevant eligible hydrocarbon is to be taken into account in applying the Fuel LCA Model; (h) if the taxpayer disposes of any environmental attributes associated with any electricity described in subparagraph (e)(i) or (ii) or any eligible renewable hydrocarbon described in subparagraph (g)(i), the carbon intensity of the project is deemed to be greater than 4.5; and (i) the Clean Hydrogen Investment Tax Credit – Carbon Intensity Modelling Guidance Document published by the Government of Canada at the time of filing by the taxpayer of the most recent related clean hydrogen project plan with the Minister of Natural Resources, is to apply conclusively with respect to the calculation of carbon intensity, except as otherwise provided in this section. Changes to clean hydrogen project (7) Subsection (8) applies in respect of a qualified clean hydrogen project of a taxpayer if, before the first day of the compliance period of the project, (a) the Minister of Natural Resources determines that there has been a material change to the project design and requests that the taxpayer file a revised project plan for the project; (b) the taxpayer (i) does not file the final detailed engineering designs with the Minister of Natural Resources in accordance with paragraph (9)(d), (ii) changes the project’s eligible pathway, or (iii) reasonably expects that there will be an increase (as compared to the most recent project plan for the project) of more than 0.5 kilograms of carbon dioxide equivalent per kilogram of hydrogen to be produced by the project; (c) any eligible power purchase agreement referenced in the most recent clean hydrogen project plan of the taxpayer (i) has not been finalized and executed so as to become legally binding, or (ii) has been materially modified or terminated; or (d) any environmental attributes associated with the agreement have been disposed of by the taxpayer. Rules relating to revised project plan (8) If this subsection applies, (a) the taxpayer shall file, within 180 days, a revised clean hydrogen project plan in respect of the project with the Minister of Natural Resources, in the form and manner determined by the Minister of Natural Resources; (b) if the Minister of Natural Resources is satisfied that the project will meet the requirements in paragraphs (a) to (c) of the definition qualified clean hydrogen project , (i) the Minister of Natural Resources shall confirm, with all due dispatch, the revised plan, (ii) the taxpayer’s clean hydrogen tax credit shall be redetermined, as of the date of the filing of the revised plan, based on the expected carbon intensity set out in the revised plan, and (iii) if the taxpayer previously deducted an amount in respect of a clean hydrogen tax credit, subsection (18) applies as if the compliance period ended on that date and the average actual carbon intensity of the project was equal to the expected carbon intensity set out in the revised plan; (c) if the Minister of Natural Resources is not satisfied in accordance with paragraph (b) and does not issue a confirmation described in subparagraph (b)(i) within one year after the filing of the taxpayer’s revised plan, then, as of the expiry of that period, (i) the project is deemed not to be a qualified clean hydrogen project, (ii) the average actual carbon intensity of the project is deemed to be greater than 4.5, and (iii) subsection (18) applies as if the compliance period of the project ended on the expiry date of that period; and (d) if the taxpayer fails to file a revised clean hydrogen project plan in accordance with paragraph (a), then, as of the expiry of the 180-day period described in paragraph (a), (i) subject to subparagraph (ii), (A) the project is deemed not to be a qualified clean hydrogen project, (B) the average actual carbon intensity of the project is deemed to be greater than 4.5, and (C) subsection (18) applies as if the compliance period of the project ended on the expiry date of that period, and (ii) once the taxpayer has filed the revised clean hydrogen project plan, subparagraph (i) is deemed never to have applied. Clean hydrogen project determination and rules (9) For the purposes of this section, (a) the Minister may, in consultation with the Minister of Natural Resources, determine that one or more clean hydrogen projects is one project or multiple projects (i) at any time before the Minister of Natural Resources confirms the expected carbon intensity of the hydrogen to be produced by a clean hydrogen project, or (ii) if a taxpayer files or is required to file a revised clean hydrogen project plan in accordance with subsection (8), at any time before the Minister of Natural Resources confirms the revised plan; (b) any determination under paragraph (a) is deemed to result in the clean hydrogen project or clean hydrogen 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 taxpayer shall file a separate clean hydrogen project plan 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; (d) in respect of each clean hydrogen project, the taxpayer shall file final detailed engineering designs with the Minister of Natural Resources by the earlier of the day on which hydrogen is first produced by the project and the day that is 60 days after the final detailed engineering designs are prepared; and (e) the Minister of Natural Resources may request from the taxpayer all documentation and information necessary for the Minister of Natural Resources to fulfill a responsibility under this section and may refuse to confirm the taxpayer’s clean hydrogen project plan or revised clean hydrogen project plan if such documentation or information is not provided by the taxpayer on or before the day that is 180 days after it was requested. Capital cost of clean hydrogen property (10) For the purposes of this section, the capital cost of eligible clean hydrogen property to a taxpayer 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 CTM investment tax credit (as defined in subsection 127.49(1)) was deducted 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); (c) be reduced by the total of all amounts, each of which can reasonably be considered to be in respect of the property and is (i) an amount of any government assistance or non-government assistance received by the taxpayer in or before the taxation year in which the property was acquired, or (ii) an amount not described in subparagraph (i) that, in the taxation year, the taxpayer is entitled to or can reasonably be expected to receive and that would be government assistance or non-government assistance if it were received by the taxpayer in the year; (d) 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 127.48, (ii) the reference in subsection 127(11.6) to subsection 127(26) is to be read as a reference to subsection 127.48(13), and (iii) the term “qualified expenditure” is to be read as an expenditure eligible to be added to the capital cost of an eligible clean hydrogen property; (e) not include any amount in respect of an expenditure incurred for a preliminary clean hydrogen work activity; (f) if the property is dual-use electricity and heat equipment, project support equipment or equipment described in any of subparagraphs (c)(iv) to (vi) of the definition eligible clean hydrogen property in subsection (1), excluding equipment used all or substantially all to support a qualified clean hydrogen project, be equal to the proportion of the capital cost of the equipment that (i) if the equipment is described in paragraph (a) of the definition dual-use electricity and heat equipment in subsection (1), the quantity of energy expected to be produced for use in the project over the first 20 years of the project’s operations is of the total quantity 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 clean hydrogen project plan, (ii) if the equipment is described in paragraph (b) of the definition dual-use electricity and heat equipment in subsection (1) or paragraph (a) of the definition project support equipment in subsection (1), the quantity of electrical energy expected to be transmitted by the equipment for use in the project over the first 20 years of the project’s operations is of the total quantity 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 clean hydrogen project plan, (iii) if the equipment is described in paragraph (b) of the definition project support equipment in subsection (1), the quantity of electrical or heat energy expected to be distributed by the equipment (or if it is 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 the project over the first 20 years of the project’s operations is of the total quantity 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 clean hydrogen project plan, (iv) if the equipment is described in paragraph (c) of the definition project support equipment in subsection (1), the mass of water expected to be supplied to the project over the first 20 years of the project’s operations is of the total mass of water expected to be processed by the equipment in that period, based on the project’s most recent clean hydrogen project plan, and (v) if the equipment is described in any of subparagraphs (c)(iv) to (vi) of the definition eligible clean hydrogen property in subsection (1) and supports equipment described in any of subparagraphs (i) to (iv), is determined under that subparagraph; and (g) after applying paragraph (f), if the property is dual-use hydrogen and ammonia equipment, dual-use electricity and heat equipment, project support equipment or equipment described in any of subparagraphs (c)(iv) to (vi) of the definition eligible clean hydrogen property in subsection (1) and that property is used in the production of hydrogen and ammonia, be allocated between two separate capital cost amounts, with each amount determined based on the percentage of the expected use of the equipment that is attributable to hydrogen production and ammonia production and (i) the capital cost amount that is attributable to hydrogen production is deemed to be in respect of property described in paragraph (a) of the definition specified percentage in subsection (1), and (ii) the capital cost amount that is attributable to ammonia production is deemed to be in respect of property described in paragraph (b) of the definition specified percentage in subsection (1). Repayment of assistance (11) 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 capital cost of an eligible clean hydrogen property under paragraph (10)(c) 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 hydrogen tax credit for the year. Partnerships (12) Subject to section 127.491, where, 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 clean hydrogen tax credit of the taxpayer at the end of the particular year. Unpaid amounts (13) For the purposes of this section, where any part of the capital cost of a taxpayer’s eligible clean hydrogen 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 hydrogen tax credit would otherwise be available in respect of the property, such amount is to be (a) excluded from the capital cost of the property in the year; and (b) added to the capital cost of the property at the time it is paid. Tax shelter investment (14) Subsection (2) does not apply if an eligible clean hydrogen 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. Annual information reporting requirement (15) If a clean hydrogen tax credit was deducted in any taxation year by a taxpayer in respect of a qualified clean hydrogen project, the taxpayer shall file, with its return of income for each taxation year that begins during the compliance period in respect of the project, a prescribed form containing prescribed information in respect of the operations of the project. Compliance — annual carbon intensity reporting (16) If a clean hydrogen tax credit was deducted by a taxpayer in respect of a qualified clean hydrogen project, the taxpayer shall file with the Minister and the Minister of Natural Resources, within 180 days after the end of each operating year, a compliance report in prescribed form and manner including (a) the actual carbon intensity of the hydrogen produced by the project during the year; (b) the quantity, in kilograms, of hydrogen that is produced by the project during the year; (c) any shutdown time of the project in respect of the year; (d) for the compliance report in respect of the fifth operating year, a report that verifies the actual carbon intensity of the hydrogen produced during each operating year of the compliance period, prepared by a qualified verification firm in respect of the project; and (e) any information required in guidelines published by the Minister of Natural Resources, including the Clean Hydrogen Investment Tax Credit – Validation and Verification Guidance Document . Failure to report (17) Each taxpayer that fails to file a compliance report for a project as described in subsection (16) is liable to a penalty, for each such failure, in an amount, not exceeding the total of all clean hydrogen tax credits deducted by the taxpayer in respect of the project, equal to the amount determined by the formula ((4% × A) ÷ 365) × B where A is the total of all amounts, each of which is the amount of a clean hydrogen tax credit in respect of the project deducted by the taxpayer for a taxation year that ended before the applicable date in subsection (16); and B is the number of days during which the failure continues. Recovery — change in carbon intensity (18) In the taxation year of a taxpayer in which the compliance period of the taxpayer’s qualified clean hydrogen project ends, if the average actual carbon intensity of the hydrogen produced is greater than the most recent expected carbon intensity that was used to determine a clean hydrogen tax credit in respect of the project, there shall be added to the taxpayer’s tax otherwise payable under this Part for the taxation year an amount equal to the total of all amounts, each of which is determined by the formula (A − B) × C where A is the specified percentage that was applied to the capital cost of the eligible clean hydrogen property forming part of the project in determining a clean hydrogen tax credit of the taxpayer; B is the specified percentage that would have applied to the capital cost of the property if the expected carbon intensity were equal to the average actual carbon intensity of the project; and C is the capital cost of the property on which the clean hydrogen tax credit was deducted. Minister’s determination (19) For the purpose of subsection (18), the Minister of Natural Resources shall review each of the taxpayer’s compliance reports described in subsection (16) and the Minister may, in consultation with the Minister of Natural Resources, make a determination or redetermination of the actual carbon intensity of the hydrogen produced by a taxpayer’s clean hydrogen project for any operating year during the compliance period of the project. De minimis exception (20) Subsection (18) does not apply to a taxpayer if the difference between the average actual carbon intensity of the taxpayer’s qualified clean hydrogen project and the expected carbon intensity of the project is 0.5 or less. Recapture of clean hydrogen tax credit — application (21) Subsection (22) applies in a taxation year if (a) a taxpayer acquired an eligible clean hydrogen property in the year or any of the preceding 20 calendar years; (b) the taxpayer became entitled to a clean hydrogen tax credit in respect of the capital cost, or a portion of the capital cost, of the property; and (c) in the year, the property is converted to a non-hydrogen or ammonia use, is exported from Canada or is disposed of without having been previously exported or converted to a non-hydrogen or ammonia use. Recapture of clean hydrogen tax credit (22) If this subsection applies for a taxation year in respect of an eligible clean hydrogen property, there shall be added to the taxpayer’s tax otherwise payable under this Part for the year an amount determined by the formula (A – B) × (C ÷ D) where A is the amount of the taxpayer’s clean hydrogen tax credit in respect of the property; B 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 (18) in respect of the property; C is an amount, not exceeding the amount determined for D, equal to (a) if the property is disposed of to a person or partnership who deals at arm’s length with the taxpayer, the proceeds of disposition of the property, and (b) in any other case, the fair market value of the property; and D is the capital cost of the property on which the clean hydrogen tax credit was deducted. Election — sale of clean hydrogen project (23) If at any time a qualifying taxpayer (referred to in this subsection as the “vendor”) disposes of all or substantially all of its property comprising a qualified clean hydrogen 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, on or before the day that is the earliest of the days on or before which any taxpayer making the election is required to file a return of income pursuant to section 150 for the taxation year in which the transaction occurred, to have this subsection apply, the following rules apply: (a) the purchaser is deemed to have acquired any eligible clean hydrogen property of the vendor at the times acquired 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 clean hydrogen tax credits determined under subsection (2) that could have been claimed by the vendor, before that time, in respect of the project; (c) any clean hydrogen project plans that were filed by the vendor in respect of the 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 section 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) subsection (22) does not apply to the vendor in respect of the disposition of property to the purchaser. Recapture event reporting requirement (24) If subsection (22) applies to a taxpayer or partnership for a particular year, the taxpayer or partnership, as the case may be, shall notify the Minister in prescribed form and manner on or before the taxpayer’s filing-due date for the year or the day when a return is required by section 229 of the Income Tax Regulations to be filed in respect of the fiscal period of the partnership. Recovery and recapture — partnerships (25) If subsection (12) has at any time applied to add an amount in computing the clean hydrogen tax credit of a member of a partnership, subsections (18) to (23) apply to determine amounts in respect of the partnership as if the partnership was a taxable Canadian corporation, its fiscal period were its taxation year and it had deducted all of the clean hydrogen tax credits that were previously added in computing the clean hydrogen tax credit of any member of the partnership because of the application of subsection (12) in respect of its partnership interest. Member’s share of recovery or recapture (26) Unless subsection (27) 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 (25) in respect of the partnership shall be added to the taxpayer’s tax otherwise payable under this Part for the year. Election by member (27) 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 a taxation year because of subsection (25) in respect of the partnership. Joint, several and solidary liability (28) Each member of a partnership is jointly and severally, or solidarily, liable for any portion of the amount of tax – determined because of subsection (25) 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 (26); or (b) of a taxable Canadian corporation because of subsection (27) and paid by the corporation by its filing-due date for the year. Interest on recovery tax (29) For the purpose of applying subsection 161(1) to an amount of tax payable because of subsection (18) (other than an amount payable because of subsection (8)), the balance-due day of a taxpayer is deemed to be the balance-due day of the taxation year for the related clean hydrogen tax credit under subsection (2). Credit after compliance period (30) For the purpose of applying subsection (2) in respect of a property acquired after the compliance period of a qualified clean hydrogen project of the taxpayer, the expected carbon intensity of the project is deemed to be the greater of the expected carbon intensity otherwise determined and the average actual carbon intensity for the compliance period of the project. Purpose (31) The purpose of this section is to encourage the investment of capital in the production of clean hydrogen and clean ammonia in Canada. Authority of the Minister of Natural Resources (32) For the purpose of determining whether a property is an eligible clean hydrogen property, the Clean Hydrogen Investment Tax Credit – Technical and Equipment Guidance Document published by the Department of Natural Resources is to apply conclusively with respect to engineering and scientific matters. (2) Subsection (1) is deemed to have come into force immediately after the expiration of March 27, 2023, except that before January 1, 2024, subsection 127.48(3) of the Act (as enacted by subsection (1)) is to be read without reference to section 127.49 and subsection 127.48(10) of the Act (as enacted by subsection (1)) is to be read without reference to its subparagraph (a)(ii). 38 (1) The Act is amended by adding the following after section 127.48, as enacted by subsection 37 (1): Definitions 127.49 (1) The following definitions apply in this section. CTM 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 CTM property acquired by the taxpayer in the year for a CTM use; and (b) the total of all amounts required by subsection (8) to be added in computing the taxpayer’s CTM investment tax credit at the end of the year. ( crédit d’impôt à l’investissement pour la FTP ) CTM property  means property of a taxpayer, other than excluded property, (a) situated in 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 a partnership, is (i) leased to a qualifying taxpayer or a partnership all the members of which are qualifying taxpayers, 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) described in Schedule II to the Income Tax Regulations that (i) is included in (A) paragraph (a) or (c) of Class 8, (B) paragraph (a) of Class 43, (C) Class 43.1 that would otherwise be included in any of clauses (A), (B) and (E), (D) Class 43.2 that would otherwise be included in clause (C), or (E) Class 53, (ii) is included in (A) paragraph (b) of Class 8, or would be included in paragraph (b) of Class 8 if that paragraph were read without reference to the word “solely” and if the word “building” were read as “structure”, (B) Class 43.1 that would otherwise be included in clause (A), or (C) Class 43.2 that would otherwise be included in clause (B), (iii) is included in (A) subparagraph (k)(i) of Class 10, provided that the property would otherwise be in paragraph (a) or (c) of Class 8, (B) subparagraph (k)(ii) of Class 10, (C) paragraph (b) of Class 41, or in paragraph (b) of Class 41.2, that would otherwise be included in clauses (A) or (B), (D) paragraph (b) of Class 43, (E) Class 43.1 that would otherwise be included in any of clauses (A) to (D), or (F) Class 43.2 that would otherwise be included in clause (E), (iv) is included in paragraph (d) or (j) of Class 12, (v) is included in (A) paragraph (a) or (e) of Class 10 or Class 38, but excluding any property that is designed or adapted for use on streets and highways, or (B) Class 56, or (vi) would be described in any of subparagraphs (i) to (v) if the word “mine” in Schedule II of the Income Tax Regulations were read as “mine, well or tailing pond”. ( bien de FTP ) CTM use  means the use of a property (a) all or substantially all for activities described in paragraph (a) or (c) of the definition qualified zero-emission technology manufacturing activities in section 5202 of the Income Tax Regulations ; or (b) in a qualifying mineral activity producing all or substantially all qualifying materials. ( utilisation pour la FTP ) excluded property  means any property used in the production of battery cells or modules if the production has benefitted from, or can reasonably be expected to benefit from, support under a contribution agreement with the Government of Canada referred to in paragraph 7300(e) of the Income Tax Regulations . ( bien exclu ) government assistance  has the same meaning as in subsection 127(9). ( aide gouvernementale ) non-CTM use  means a use of a property other than a CTM use. ( utilisation autre que pour la FTP ) non-government assistance  has the same meaning as in subsection 127(9). ( aide non gouvernementale ) permitted element  means hydrogen, carbon, nitrogen, oxygen, phosphorus, sulfur, selenium, sodium, potassium, a halogen or a noble gas. ( élément autorisé ) qualifying material  means  (a) lithium; (b) cobalt; (c) nickel; (d) copper; (e) rare earth elements; and (f) graphite. ( matériau admissible ) qualifying mineral activity  means   (a) the extraction of resources from a mineral deposit or from a tailing pond; (b) a mineral processing activity, including crushing, grinding, milling, separation, sieving, screening, froth floatation, leaching, recrystallization, precipitation, drying, evaporation, heating, calcinating, roasting, smelting, casting of ingots, refining, purification, distillation, electrodeposition and surface roughening of electrodeposited foil, that (i) is performed at a mine site, well site, tailing pond, mill, smelter or refinery, and (ii) occurs prior to or as part of a process intended (A) to increase the purity of at least one qualifying material, or (B) to produce a material with non-trace amounts of a single qualifying material, and without non-trace amounts of any elements other than permitted elements; (c) a recycling activity that is (i) sorting, disassembly or shredding of a recyclable material, or (ii) a material processing activity substantially similar to an activity described in paragraph (b) if that paragraph were read without reference to its subparagraph (i); (d) a synthetic graphite activity that is (i) performed during or after the graphitization stage, and (ii) a material processing activity substantially similar to an activity described in paragraph (b) if that paragraph were read without reference to its subparagraph (i); or (e) spheronization of graphite or coating of spheronized graphite. ( activité minière admissible ) qualifying taxpayer  means a taxable Canadian corporation. ( contribuable admissible ) specified percentage  means in respect of a CTM property of the taxpayer that is acquired (a) before January 1, 2024, determined without reference to subsection (4), nil; (b) after December 31, 2023 and before January 1, 2032, 30%; (c) after December 31, 2031 and before January 1, 2033, 20%; (d) after December 31, 2032 and before January 1, 2034, 10%; (e) after December 31, 2033 and before January 1, 2035, 5%; and (f) after December 31, 2034, nil. ( pourcentage déterminé ) CTM 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 CTM 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 and, if the prescribed form is filed after the taxpayer’s filing-due date for the year, no payment is deemed to arise under that subsection until the prescribed form containing the prescribed information has been filed with the Minister. Time of acquisition (4) For the purpose of this section, CTM 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 this section, the capital cost of CTM property to a taxpayer 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 clean hydrogen tax credit (as defined in subsection 127.48(1)) was deducted 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); (c) be reduced by the total of all amounts, each of which can reasonably be considered to be in respect of the property and is (i) an amount of any government assistance or non-government assistance received by the taxpayer in or before the taxation year in which the property was acquired, or (ii) an amount not described in subparagraph (i) that, in the taxation year, the taxpayer is entitled to or can reasonably be expected to receive and that would be government assistance or non-government assistance if it were received by the taxpayer; and (d) 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 127.49, (ii) the reference in subsection 127(11.6) to subsection 127(26) is to be read as a reference to subsection 127.49(9), and (iii) the term “qualified expenditure” is to be read as an expenditure eligible to be added to the capital cost of a CTM property. Deemed deduction (6) For the purpose 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) and sections 127.48 and 129, 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)(c) 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 CTM investment tax credit for the year. Partnerships (8) Subject to section 127.491, where, in a particular taxation year of a qualifying taxpayer that 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 qualifying taxpayer 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 CTM investment tax credit of the taxpayer at the end of the particular year. Unpaid amounts (9) For the purpose of this section, where any part of the capital cost of a taxpayer’s CTM 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 CTM 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 CTM 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 CTM property in the year or any of the preceding 10 calendar years; (b) the taxpayer became entitled to a CTM investment tax credit in respect of the capital cost, or a portion of the capital cost, of the property; and (c) in the year, the property (or another property that incorporates the property) is converted to a non-CTM use, is exported from Canada or is disposed of without having been previously exported or converted to a non-CTM 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 CTM investment tax credit in respect of the property, and (b) the amount determined by the formula A × (B ÷ C) where A is the amount of the taxpayer’s CTM investment tax credit in respect of the property, B is (i) in the case where the property is disposed of to a person or partnership who deals at arm’s length with the taxpayer, the proceeds of disposition of the property, or (ii) in the case where the property is disposed of to a person or partnership who does not deal at arm’s length with the taxpayer, is converted to a non-CTM use or is exported from Canada, the fair market value of the property, and C is the capital cost of the property on which the CTM investment tax credit was deducted. Certain non-arm’s length transfers (13) Subsections (11) and (12) do not apply to a taxpayer (in this subsection referred to as the “transferor”) that disposes of a property to a qualifying taxpayer (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 CTM property to the purchaser (but for paragraph (b) of the definition CTM property in subsection (1)) and is used by the purchaser for a CTM use. Certain non-arm’s length transfers — recapture deferred (14) If subsections (11) and (12) do not apply because of subsection (13), subsection 127(34) applies with such modifications as the circumstances require, including that the reference to subsection 127(33) be read as subsection 127.49(13). Recapture event reporting requirement (15) If subsection (12) or (13) applies to a taxpayer for a taxation 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 CTM 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 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 property (or another property that incorporates the property) is converted to a non-CTM use, is exported from Canada or is disposed of without having been previously exported or converted to a non-CTM 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 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 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 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 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. CTM investment tax credit — purpose (19) The purpose of this section is to encourage the investment of capital in Canada for a CTM use. (2) Subsection (1) is deemed to have come into force on January 1, 2024. 39 (1) The Act is amended by adding the following after section 127.49, as enacted by subsection 38 (1): Definitions 127.491 (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 127.48(12); or (b) subsection 127.49(8). ( disposition d’allocation pour l’économie propre ) clean economy expenditure  means (a) the capital cost of eligible clean hydrogen property as determined under section 127.48; or (b) the capital cost of CTM property as determined under section 127.49. ( dépense pour l’économie propre ) clean economy provision  means (a) this section; (b) section 127.48; or (c) section 127.49. ( disposition pour l’économie propre ) clean economy tax credit  means (a) a clean hydrogen tax credit (as defined under section 127.48(1)); or (b) a CTM investment tax credit (as defined under section 127.49(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 immediately after the expiration of March 27, 2023, except that before January 2024, the definitions clean economy allocation provision , clean economy expenditure , clean economy provision and clean economy tax credit in subsection 127.491(1) of the Act, as enacted by subsection (1), are to be read as follows: clean economy allocation provision  means subsection 127.48(12). ( disposition d’allocation pour l’économie propre ) clean economy expenditure  means a capital cost of eligible clean hydrogen property as determined under section 127.48. ( dépense pour l’économie propre ) clean economy provision  means (a) this section; or (b) section 127.48. ( disposition pour l’économie propre ) clean economy tax credit  means a clean hydrogen tax credit (as defined under section 127.48(1)). ( crédit d’impôt pour l’économie propre ) 40 (1) The description of A in section 127.51 of the Act is replaced by the following: A is 20.5%; (2) Paragraph (a) of the description of C in section 127.51 of the Act is replaced by the following: (a) the first dollar amount for the year referred to in paragraph 117(2)(d), in the case of an individual (other than a trust) or a qualified disability trust (as defined in subsection 122(3)); and (3) Subsections (1) and (2) apply to taxation years that begin after December 31, 2023. 41 (1) Subparagraph 127.52(1)(d)(i) of the Act is replaced by the following: (i) the references to the fraction applicable to the individual for the year in each of paragraphs 38(a) and (b) and section 41 were read as a reference to “1/1”, and (2) The formula in subparagraph 127.52(1)(d)(ii) of the Act is replaced by the following: A ÷ B (3) Subsection 127.52(1) of the Act is amended by adding the following after paragraph (d): (d.1) in respect of a disposition to which paragraph 38(a.1) applies, the portion of that paragraph before subparagraph (i) were read as “a taxpayer’s taxable capital gain for a taxation year from the disposition of a property is equal to 3/10 of the taxpayer’s capital gain for the year from the disposition of the property if”; (4) The portion of subparagraph 127.52(1)(g)(ii) of the Act before clause (A) is replaced by the following: (ii) the total of all amounts each of which is (5) Clause 127.52(1)(g)(ii)(A) of the French version of the Act is replaced by the following: (A) un montant attribué par la fiducie en application du paragraphe 104(21) pour l’année, (6) The portion of clause 127.52(1)(g)(ii)(B) of the French version of the Act before subclause (I) is replaced by the following: (B) la partie d’un gain en capital imposable net de la fiducie qu’il est raisonnable de considérer : (7) Subparagraphs 127.52(1)(h)(i) to (vi) of the Act are replaced by the following: (i) the amounts deducted under subsection 110(2), (ii) 7/5 of the amounts deducted under any of paragraph 110(1)(d.01) and subsections 110.6(2) and (2.1), (iii) the amount that would be deductible under paragraph 110(1)(f) if the individual deducted 1/2 of the amount the individual deducted for the year under subparagraph 110(1)(f)(v), (iv) 1/2 of the amount deducted for the year under subsection 110.7(1), and (v) the amount deducted under paragraph 110(1)(g); (8) Clause 127.52(1)(i)(i)(A) of the Act is replaced by the following: (A) 1/2 of all amounts deducted for the year under paragraphs 111(1)(a), (c), (d) and (e), and (9) The portion of clause 127.52(1)(i)(i)(B) of the English version of the Act before subclause (I) is replaced by the following: (B) the total of all amounts that would be deductible under those paragraphs for the year if the amount that would be deductible under paragraphs 111(1)(a), (c), (d) and (e) was 1/2 of the amount that would otherwise be deductible under those paragraphs and if (10) Clause 127.52(1)(i)(ii)(A) of the Act is replaced by the following: (A) the total of all amounts deducted under paragraph 111(1)(b), and (11) Clause 127.52(1)(i)(ii)(B) of the Act is amended by striking out “and” at the end of subclause (II) and by replacing subclause (III) with the following: (III) paragraphs (c.1) and (d) of this subsection applied in computing the individual’s net capital loss for any taxation year that ends after 2011 and begins before 2024, and (IV) paragraph (c.1) of this subsection applied in computing the individual’s net capital loss for any taxation year that begins after 2023; and (12) Paragraph 127.52(1)(j) of the Act is replaced by the following: (j) in computing the individual’s income for the year, the individual deducted 1/2 of the amount deducted for the year under (i) paragraphs 8(1)(c) to (e), (g) to (l.2) and (p) to (t), (ii) paragraphs 20(1)(c) to (f) in respect of an amount borrowed to earn income from property for the year, other than an amount described under any of paragraphs (b), (c), (c.2), (c.3) and (e.1), (iii) paragraphs 60(e), (e.1) and (g), (iv) subsections 62(1) and (2), (v) subsections 63(1) and (2.2), and (vi) section 64. (13) Subsections (1) to (12) apply to taxation years that begin after December 31, 2023. 42 (1) Paragraphs 127.531(a) and (b) of the Act are replaced by the following: (a) 1/2 of an amount deducted under any of subsections 118(1), (2), (3) and (10), sections 118.01 to 118.07, subsections 118.3(1), (2) and (3) and sections 118.5 to 118.9 in computing the individual’s tax payable for the year under this Part; (b) 1/2 of the amount that was claimed under section 118.2 in computing the individual’s tax payable for the year under this Part, determined without reference to this Division, to the extent that the amount claimed does not exceed the maximum amount deductible under that section in computing the individual’s tax payable for the year under this Part, determined without reference to this Division; (c) 4/5 of the amount that was claimed under section 118.1 in computing the individual’s tax payable for the year under this Part, determined without reference to this Division, to the extent that the amount claimed does not exceed the maximum amount deductible under that section in computing the individual’s tax payable for the year under this Part, determined without reference to this Division; and (d) an amount deducted under section 119 or subsection 127(1) in computing the individual’s tax payable for the year under this Part. (2) Subsection (1) applies to taxation years that begin after December 31, 2023. 43 (1) The definition foreign taxes in subsection 127.54(1) of the English version of the Act is replaced by the following: foreign taxes  of an individual for a taxation year means the total of the business-income taxes , as defined in subsection 126(7), paid by the individual for the year in respect of businesses carried on by the individual in countries other than Canada and 2/3 of the non-business-income taxes , as defined in that subsection, paid by the individual for the year to the governments of countries other than Canada. ( impôts payés à l’étranger ) (2) Paragraph (b) of the definition foreign income in subsection 127.54(1) of the Act is replaced by the following: (b) the individual’s incomes for the year (as would be determined if paragraph 127.52(1)(d) were applicable) from sources in countries other than Canada in respect of which the individual has paid non-business-income taxes , as defined in subsection 126(7), to governments of countries other than Canada; ( revenu de source étrangère ) (3) The description of A in subparagraph 127.54(2)(b)(ii) of the Act is replaced by the following: A is 20.5%, and (4) Subsections (2) and (3) apply to taxation years that begin after December 31, 2023. 44 (1) Paragraph 127.55(f) of the Act is replaced by the following: (f) a taxation year of a trust throughout which the trust is (i) a trust referred to in paragraph 150(1.2)(f), (g), (i), (j), (l) or (n), (ii) an investment fund (as defined in subsection 251.2(1)) unless the trust qualifies as an investment fund because of or in connection with a transaction or event or series of transactions or events one of the main purposes of which is to avoid tax under this Division, (iii) a trust (A) all of the beneficiaries of which are any combination of (I) persons exempt from tax under this Division, and (II) trusts described in this subparagraph, (B) under which no person (other than a person described in subclause (A)(I) or (II)) can be added as a beneficiary, (C) in which all interests are fixed interests (as defined in subsection 94(1)), and (D) that is irrevocable, (iv) a trust that is exempt from tax under this Part, (v) a trust described in subsection 143(1), or (vi) a unit trust if the total fair market value of the units of the trust that are listed on a designated stock exchange represents all or substantially all of the total fair market value of all the units of the trust. (2) Subsection (1) applies to taxation years that begin after December 31, 2023. 45 (1) Subparagraph (g)(i) of the definition excluded right or interest in subsection 128.1(10) of the English version of the Act is replaced by the following: (i) the Canada Pension Plan or a provincial pension plan as defined in section 3 of that Act, (2) Subsection (1) is deemed to have come into force on August 4, 2023. 46 (1) The definition eligible refundable dividend tax on hand in subsection 129(4) of the Act is amended by striking out “and” at the end of subparagraph (a)(i) and by adding the following after subparagraph (a)(ii): (iii) eligible dividends received by the particular corporation in a taxation year that began after 2018 from corporations (referred to in this subparagraph as “payer corporations”) that are connected with the particular corporation to the extent that such dividends (A) caused a dividend refund to those payer corporations from their refundable dividend tax on hand at the end of their first taxation year that ended after 2018, and (B) are not otherwise included in determining the particular corporation’s eligible refundable dividend tax on hand, and (2) Subsection (1) applies to taxation years beginning after 2018. 47 (1) Subsection 131(4.1) 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 old share and the new share are not shares of the same class but are shares of Capital régional et coopératif Desjardins , (i) the old share and the new share derive their value in the same proportion from the same property or group of properties, and (ii) the shares are recognized under securities legislation as or as part of the same investment fund. (2) Subsection (1) applies to the exchange or other disposition of a share on or after October 25, 2018. 48 (1) Subparagraph (a)(ii) of the definition revenu gagné in subsection 146(1) of the French version of the Act is replaced by the following: (ii) d’une entreprise qu’il exploite soit seul, soit comme associé participant activement à l’exploitation de l’entreprise, (2) Paragraph (c) of the definition revenu gagné in subsection 146(1) of the French version of the Act is replaced by the following: c) soit son revenu, sauf un montant visé à l’alinéa 12(1)z), pour une période de l’année tout au long de laquelle il ne résidait pas au Canada tiré, selon le cas, des fonctions d’une charge ou d’un emploi qu’il remplit au Canada, compte non tenu des alinéas 8(1)c), m) et m.2), ou d’une entreprise qu’il exploite au Canada, soit seul, soit comme associé participant activement à l’exploitation de l’entreprise, sauf dans la mesure où ce revenu est exonéré de l’impôt sur le revenu au Canada par l’effet d’une disposition d’un accord ou convention fiscal conclu avec un autre pays et ayant force de loi au Canada; (3) Subparagraph (e)(i) of the definition revenu gagné in subsection 146(1) of the French version of the Act is replaced by the following: (i) d’une entreprise qu’il exploite soit seul, soit comme associé participant activement à l’exploitation de l’entreprise, (4) Paragraph (g) of the definition revenu gagné in subsection 146(1) of the French version of the Act is replaced by the following: g) soit sa perte pour une période de l’année tout au long de laquelle il n’a pas résidé au Canada, provenant d’une entreprise qu’il exploite au Canada, soit seul, soit comme associé participant activement à l’exploitation de l’entreprise; (5) Subsection 146(8.1) of the Act is replaced by the following: Deemed receipt of refund of premiums (8.1) An individual and the legal representative of a deceased annuitant of a registered retirement savings plan may jointly designate in prescribed form filed with the Minister that all or a portion of a payment made out of or under the plan to the legal representative is deemed to have been received by the individual at the time it was so paid as a benefit that is a refund of premiums, and not to have been paid to the legal representative, if (a) a payment not less than the designated amount is made from the estate of the deceased annuitant to the individual who is entitled to receive the payment (i) as a beneficiary (as defined in subsection 108(1)) under the estate, or (ii) under a decree, order or judgment of a competent tribunal or under a written agreement, relating to the rights or interests of a spouse or common-law partner in respect of property as a result of marriage or common-law partnership; and (b) the designated amount would have been a refund of premiums if it had been paid to the individual directly from the registered retirement savings plan. (6) The portion of subsection 146(8.93) of the French version of the Act before paragraph (a) is replaced by the following: Application du paragraphe (8.92) (8.93) À moins que le ministre n’ait renoncé par écrit à appliquer le présent paragraphe à l’égard de tout ou partie de la somme déterminée selon le paragraphe (8.92) relativement à un régime enregistré d’épargne-retraite, ce paragraphe ne s’applique pas dans l’une des circonstances suivantes : (7) The portion of subsection 146(16) of the French version of the Act before paragraph (d) is replaced by the following: Transfert de biens (16) Malgré les autres dispositions du présent article, un régime enregistré d’épargne-retraite peut, à un moment donné, être révisé ou modifié de façon à prévoir le versement ou le transfert, avant son échéance, par l’émetteur de biens accumulés pour le compte du rentier du régime (appelé « cédant » au présent paragraphe) : a) soit à un régime de pension agréé, au profit du cédant, ou à un régime enregistré d’épargne-retraite ou un fonds enregistré de revenu de retraite dont le cédant est rentier; a.1) soit à un fournisseur de rentes autorisé afin d’acquérir une rente viagère différée à un âge avancé au profit du cédant; b) soit à un régime enregistré d’épargne-retraite ou un fonds enregistré de revenu de retraite dont l’époux ou le conjoint de fait ou l’ex-époux ou ancien conjoint de fait du cédant est rentier, si le cédant et son époux ou conjoint de fait ou ex-époux ou ancien conjoint de fait vivent séparément et si le versement ou le transfert est effectué en vertu d’une ordonnance ou d’un jugement rendus par un tribunal compétent ou en vertu d’un accord écrit de séparation, visant à partager des biens entre le cédant et son époux ou conjoint de fait ou ex-époux ou ancien conjoint de fait, en règlement des droits découlant du mariage ou de l’union de fait ou de son échec. Dans le cas où un tel versement ou transfert est effectué pour le compte du cédant avant l’échéance du régime, les règles suivantes s’appliquent : c) le montant du versement ou du transfert ne peut, en raison seulement du versement ou du transfert, être inclus dans le calcul du revenu du cédant ou de son époux ou conjoint de fait ou ex-époux ou ancien conjoint de fait; (8) Subsection 146(21.2) of the Act is replaced by the following: Specified pension plan — account (21.2) For the purposes of paragraph (8.2)(b), subsection (8.21), paragraphs (16)(a) and (b) and 18(1)(u), section 60.011, subparagraph (a)(i) of the definition excluded right or interest in subsection 128.1(10), paragraph (b) of the definition excluded premium in subsection 146.01(1), paragraph (c) of the definition excluded premium in subsection 146.02(1), subsections 146.3(14) and 147(19), section 147.3 and paragraphs 147.5(21)(c) and 212(1)(j.1) and (m) and for the purposes of any regulations made under subsection 147.1(18), an individual’s account under a specified pension plan is deemed to be a registered retirement savings plan under which the individual is the annuitant. (9) Subsection (5) is deemed to have come into force on January 1, 2020. (10) Subsection (8) is deemed to have come into force on August 4, 2023. 49 (1) Paragraph (h) of the definition regular eligible amount in subsection 146.01(1) of the Act is replaced by the following: (h) the total of the amount and all other eligible amounts received by the individual in the calendar year that includes the particular time does not exceed $60,000, and (2) Paragraph (g) of the definition supplemental eligible amount in subsection 146.01(1) of the Act is replaced by the following: (g) the total of the amount and all other eligible amounts received by the individual in the calendar year that includes the particular time does not exceed $60,000, and (3) The portion of subsection 146.01(4) of the Act before the formula is replaced by the following: Portion of eligible amount not repaid (4) Subject to subsection (4.1), there shall be included in computing an individual’s income for a particular taxation year included in a particular participation period of the individual the amount determined by the formula (4) Section 146.01 of the Act is amended by adding the following after subsection (4): Temporary repayment relief — application (4.1) If the completion date in respect of an eligible amount received by an individual is after 2022 and before 2027 (a) subparagraphs (a)(i) and (ii) of the description of A in subsection (4) are to be read as follows: “(i) the individual died or ceased to be resident in Canada in the particular year, (ii) the completion date in respect of an eligible amount received by the individual was in the particular year, or (iii) subsection (4.2) applies to the particular year and to an eligible amount received by the individual”; (b) paragraph (a) of the description of B in subsection (4) is to be read as follows: “(a) nil, if the amount determined for A, after the application of paragraph (4.1)(a), was nil in the preceding taxation year, and”; (c) the reference to “first calendar year” in paragraph (b) of the description of D in subsection (4) is to be read as a reference to “fourth calendar year”; and (d) paragraph (a) of the description of E in subsection (4) is to be read as follows: “(a) if the preceding taxation year is the year that includes the completion date, or one of the three taxation years immediately following the year that includes the completion date, the total of all amounts each of which is designated under subsection (3) by the individual for the particular taxation year or any preceding taxation year included in the particular period, and”. Temporary repayment relief — conditions (4.2) This subsection applies to a taxation year and to an eligible amount received by an individual if (a) the year is 2024 and the completion date in respect of the amount was in 2023; (b) the year is 2025 and the completion date in respect of the amount was in 2023 or 2024; (c) the year is 2026 and the completion date in respect of the amount was in 2023, 2024 or 2025; (d) the year is 2027 and the completion date in respect of the amount was in 2024, 2025 or 2026; (e) the year is 2028 and the completion date in respect of the amount was in 2025 or 2026; and (f) the year is 2029 and the completion date in respect of the amount was in 2026. (5) Subsections (1) and (2) apply to the 2024 and subsequent taxation years in respect of amounts received after April 16, 2024. (6) Subsections (3) and (4) apply to the 2024 and subsequent taxation years. 50 The portion of subsection 146.3(6.4) of the French version of the Act before paragraph (a) is replaced by the following: Application du paragraphe (6.3) (6.4) À moins que le ministre n’ait renoncé par écrit à appliquer le présent paragraphe à l’égard de tout ou partie de la somme déterminée selon le paragraphe (6.3) relativement à un fonds enregistré de revenu de retraite, ce paragraphe ne s’applique pas dans l’une des circonstances suivantes : 51 (1) The portion of paragraph 146.4(4)(f) of the French version of the Act before subparagraph (i) is replaced by the following: f) le régime ne permet pas que des cotisations y soient versées, à un moment donné, dans l’une des circonstances suivantes : (2) The portion of paragraph 146.4(4)(g) of the French version of the Act before subparagraph (i) is replaced by the following: g) le régime ne permet pas qu’une cotisation y soit versée, à un moment donné, dans l’une des circonstances suivantes : 52 (1) Paragraph 147.4(1)(c) of the Act is replaced by the following: (c) the contract does not permit premiums to be paid at or after that time, other than (i) a premium paid at that time out of or under the plan to purchase the contract, or (ii) a premium paid after that time to acquire additional benefits consequential to proceedings commenced under the Bankruptcy and Insolvency Act or the Companies’ Creditors Arrangement Act , (2) Subsection (1) is deemed to have come into force on January 1, 2018. 53 (1) Subsection 147.5(12) of the Act is replaced by the following: Member’s account (12) For the purposes of paragraph 18(1)(u), section 60.011, subparagraph (a)(i) of the definition excluded right or interest in subsection 128.1(10), paragraph 146(8.2)(b), subsection 146(8.21), paragraphs 146(16)(a) and (b), subparagraph 146(21)(a)(i), paragraph (b) of the definition excluded premium in subsection 146.01(1), paragraph (c) of the definition excluded premium in subsection 146.02(1), subsections 146.3(14) and 147(19) to (21), sections 147.3 and 160.2 and paragraphs 212(1)(j.1) and (m), and of regulations made under subsection 147.1(18), a member’s account under a PRPP is deemed to be a registered retirement savings plan under which the member is the annuitant. (2) Subsection (1) is deemed to have come into force on August 4, 2023. 54 Subsection 149.1(14.1) of the French version of the Act is replaced by the following: Déclarations de renseignements (14.1) Dans les six mois suivant la fin de son année d’imposition, l’organisation journalistique enregistrée doit présenter au ministre, sans avis ni mise en demeure, une déclaration de renseignements et une déclaration publique de renseignements pour l’année, selon le formulaire prescrit et renfermant les renseignements prescrits, y compris, pour la déclaration publique de renseignements, le nom de chaque donateur dont le total des dons à l’organisation pendant l’année dépasse 5 000 $ ainsi que le montant total des dons effectués par ce donateur. 55 (1) Subsection 150(1.2) of the Act is amended by striking out “or” at the end of paragraph (n), by adding “or” at the end of paragraph (o) and by adding the following after paragraph (o): (p) is an eligible trust , as defined in subsection 135.2(1). (2) Subsection (1) applies to taxation years that end after December 30, 2023. 56 (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), 127.48(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), 127.48(2), 127.49(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) Subsection 152(4) of the Act is amended by adding the following before paragraph (c): (b.92) a prescribed form that is required to be filed by the taxpayer, or a partnership of which the taxpayer is a member, under subsection 127.48(24) is not filed as and when required, and the assessment, reassessment or additional assessment is made in relation to amounts, transactions or events described in any of subsections 127.48(21), (22) or (25) to (28) 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, or (ii) in any other case, three years after the day on which the form is filed; (4) Subsection 152(4) of the Act is amended by adding the following after paragraph (b.92), as enacted by subsection (3): (b.93) a prescribed form that is required to be filed by the taxpayer, or a partnership of which the taxpayer is a member, under subsection 127.49(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 any of subsections 127.49(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, or (ii) in any other case, three years after the day on which the form is filed; (5) 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 paragraph (x): (x.1) the amounts, transactions or events referred to in paragraph (4)(b.92), or (x.2) the transactions or events referred to in paragraph (4)(b.93); (6) Subsections (1) and (3) are deemed to have come into force immediately after the expiration of March 27, 2023. (7) Subsections (2) and (4) are deemed to have come into force on January 1, 2024. (8) Subparagraph 152(4.01)(b)(x.1) of the Act, as enacted by subsection (5), is deemed to have come into force immediately after the expiration of March 27, 2023. (9) Subparagraph 152(4.01)(b)(x.2) of the Act, as enacted by subsection (5), is deemed to have come into force on January 1, 2024. 57 (1) Paragraph 153(1)(d.1) of the Act is replaced by the following: (d.1) an amount described in subparagraph 56(1)(a)(iv), (vii) or (viii), (2) Section 153 of the Act is amended by adding the following after subsection (1.04): Canada Emergency Wage Subsidy claimed (1.05) Despite subsection (1.02), an amount is not deemed to have been remitted to the Receiver General if (a) the eligible employer made an application in respect of section 125.7 for a qualifying period in respect of which the eligible employer was, without reference to this subsection, deemed under subsection (1.02) to have remitted the amount to the Receiver General; and (b) the amount was not included under the description of B in subsection 125.7(2) for the eligible employer. (3) Subsection (1) is deemed to have come into force on April 1, 2019. (4) Subsection (2) is deemed to have come into force on March 18, 2020. 58 (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 127.48(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), 127.48(2) or 127.49(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 127.48(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), 127.48(2) or 127.49(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 immediately after the expiration of March 27, 2023. (6) Subsections (2) and (4) are deemed to have come into force on January 1, 2024. 59 (1) Subsection 163(2) of the Act is amended by adding the following before paragraph (e): (d.1) the amount, if any, by which (i) the amount that would be deemed by subsection 127.48(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 127.48(2), as the case may be, 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 127.48(2) or 127.49(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 127.48(2) or 127.49(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 immediately after the expiration of March 27, 2023. (4) Subsection (2) is deemed to have come into force on January 1, 2024. 60 (1) The portion of subsection 164(3) of the Act before paragraph (a) is replaced by the following: Interest on refunds and repayments (3) If, under this section, an amount in respect of a taxation year (other than an amount, or a portion of the amount, that can reasonably be considered to arise from the operation of paragraph 60(n.2) or section 122.5, 122.61, 122.72, 122.8 or 125.7) is refunded or repaid to a taxpayer or applied to another liability of the taxpayer, the Minister shall pay or apply interest on it at the prescribed rate for the period that begins on the day that is the latest of the days referred to in the following paragraphs and that ends on the day on which the amount is refunded, repaid or applied: (2) The portion of subsection 164(3) of the Act before paragraph (a), as enacted by subsection (1), is replaced by the following: Interest on refunds and repayments (3) If, under this section, an amount in respect of a taxation year (other than an amount, or a portion of the amount, that can reasonably be considered to arise from the operation of paragraph 60(n.2) or section 122.5, 122.61, 122.72, 122.8, 125.7 or 127.421) is refunded or repaid to a taxpayer or applied to another liability of the taxpayer, the Minister shall pay or apply interest on it at the prescribed rate for the period that begins on the day that is the latest of the days referred to in the following paragraphs and that ends on the day on which the amount is refunded, repaid or applied: (3) Subsection (1) applies to the 2019 and subsequent taxation years. 61 Subsection 204.1(4) of the French version of the Act is replaced by the following: Renonciation (4) Le ministre peut renoncer à l’impôt dont un particulier serait, compte non tenu du présent paragraphe, redevable pour un mois selon les paragraphes (1) ou (2.1), si celui-ci établit à la satisfaction du ministre que l’excédent ou l’excédent cumulatif qui est frappé de l’impôt fait suite à une erreur raisonnable et que des mesures adéquates sont prises pour éliminer l’excédent. 62 (1) Paragraph (b) of the description of H in subsection 204.2(1.2) of the Act is replaced by the following: (b) the total of the amounts, each of which is an amount that is (i) deducted in or before that preceding year, under subsections 146(5) and 146(5.1) in computing the individual’s income for the immediately preceding taxation year, to the extent that each amount was deducted in respect of premiums paid under registered retirement savings plans, or (ii) contributed in the immediately preceding taxation year by the individual’s employer or former employer to an account of the individual under a pooled registered pension plan, (2) Subsection (1) applies to the 2012 and subsequent taxation years. 63 The portion of subsection 204.91(2) of the French version of the Act before paragraph (b) is replaced by the following: Renonciation (2) Le ministre peut renoncer à tout ou partie de l’impôt dont le souscripteur d’un régime enregistré d’épargne-études serait redevable pour un mois selon le paragraphe (1), si ce n’était le présent paragraphe, ou l’annuler en tout ou en partie, dans le cas où il est juste et équitable de le faire compte tenu des circonstances, y compris : a) le fait que l’impôt fasse suite à une erreur raisonnable; 64 Subsection 205(3) of the French version of the Act is replaced by the following: Renonciation (3) Le ministre peut renoncer à la totalité ou à une partie de l’impôt dont un particulier serait, compte non tenu du présent paragraphe, redevable pour un mois selon le paragraphe (2), ou l’annuler en tout ou en partie, si celui-ci établit à la satisfaction du ministre que l’excédent cumulatif qui est frappé de l’impôt fait suite à une erreur raisonnable et que des mesures adéquates sont prises pour éliminer l’excédent. 65 (1) Subsection 207.01(10) of the Act is amended by striking out “and” after paragraph (c) and by replacing paragraph (d) with the following: (d) the transferor and the recipient — or, if the property is transferred as a consequence of the death of the transferor, the transferor’s legal representative and the recipient — jointly elect in prescribed form that subsection (11) apply in respect of the property and the election is filed with the Minister on or before the day that is 90 days after the end of the (i) recipient’s taxation year that includes the transfer time, if the property is transferred as a consequence of the death of the transferor, or (ii) transferor’s taxation year that includes the transfer time, in any other case; and (e) an amount (in subsection (11) referred to as the “designated amount”) is designated on the prescribed form described in paragraph (d) in respect of the property that (i) is not less than the adjusted cost base to the transferor trust of the property immediately before the transfer time, and (ii) does not exceed the greater of the amount determined under subparagraph (i) and the fair market value of the property at the transfer time. (2) Subsection (1) is deemed to have come into force on January 1, 2020. 66 (1) The portion of subsection 207.5(2) of the Act before paragraph (a) is replaced by the following: Election (2) Despite the definition refundable tax in subsection 207.5(1), where the custodian of a retirement compensation arrangement so elects in the return under this Part for a taxation year of an RCA trust under the arrangement and all the subject property, if any, of the arrangement (other than a right to claim a refund under subsection 164(1) or 207.7(2)) at the end of the year consists only of cash, debt obligations, shares listed on a designated stock exchange, units of a mutual fund trust that are listed on a designated stock exchange, or any combination thereof, an amount equal to the total of (2) Paragraph 207.5(2)(c) of the Act is replaced by the following: (c) the fair market value of those shares or units at the end of the year (3) Subsections (1) and (2) apply to elections made in respect of the 2020 and subsequent taxation years. 67 Paragraph 207.64(a) of the French version of the Act is replaced by the following: a) le fait que l’impôt fasse suite à une erreur raisonnable; 68 (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 127.48(4). (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) or subsection 127.48(4) or 127.49(3). (3) Subsection (1) is deemed to have come into force immediately after the expiration of March 27, 2023. (4) Subsection (2) is deemed to have come into force on January 1, 2024. 69 Paragraph 223(1)(b.1) of the Act is repealed. 70 Subsection 227(9.1) of the Act is replaced by the following: Penalty (9.1) Despite any other provision of this Act, any other enactment of Canada, any enactment of a province or any other law, the penalty for failure to remit an amount required to be remitted by a person on or before a prescribed date under subsection 153(1), subsection 21(1) of the Canada Pension Plan and subsection 82(1) of the Employment Insurance Act shall, unless the person who is required to remit the amount has, knowingly or under circumstances amounting to gross negligence, delayed in remitting the amount or has, knowingly or under circumstances amounting to gross negligence, remitted an amount less than the amount required, apply only to the amount by which the total of all so required to be remitted on or before that date exceeds $500. 71 The portion of subsection 231.2(3) of the Act before paragraph (a) is replaced by the following: 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 more than one unnamed person (in this subsection referred to as the “group”) if the judge is satisfied by information on oath that 72 Paragraph (a) of the description of A in section 235 of the Act is replaced by the following: (a) 0.0005% of the corporation’s taxable capital employed in Canada (within the meaning assigned in Part I.3) at the end of the taxation year, and 73 (1) The portion of subsection 238(1) of the Act before paragraph (a) is replaced by the following: Offences and punishment 238 (1) Every person who has failed to file or make a return — other than a return under section 237.3 or 237.4 — as and when required by or under this Act or a regulation or who has failed to comply with subsection 116(3), 127(3.1) or (3.2), 147.1(7) or 153(1), any of sections 230 to 232, 244.7 and 267 or a regulation made under subsection 147.1(18) or with an order made under subsection (2) is guilty of an offence and, in addition to any penalty otherwise provided, is liable on summary conviction to (2) Subsection (1) is deemed to have come into force on June 22, 2023. 74 (1) Paragraph 241(1)(c) of the Act is replaced by the following: (c) knowingly use any taxpayer information otherwise than in the course of the administration or enforcement of this Act, the Canada Pension Plan or the Employment Insurance Act or for the purpose for which it was provided under this section. (2) Paragraph 241(3)(b) of the Act is replaced by the following: (b) any legal proceedings relating to the administration or enforcement of this Act, the Canada Pension Plan or the Employment Insurance Act or any other Act of Parliament or law of a province that provides for the imposition or collection of a tax or duty. (3) Paragraph 241(4)(a) of the Act is replaced by the following: (a) provide to any person taxpayer information that can reasonably be regarded as necessary for the purposes of the administration or enforcement of this Act, the Canada Pension Plan or the Employment Insurance Act , solely for that purpose; (4) Paragraph 241(4)(d) of the Act is amended by adding the following after subparagraph (vi.1): (vi.2) to a person employed or engaged in the service of an office or agency of the Government of Canada solely for the purposes of administering or enforcing sections 127.48, 127.49 and 127.491 or the evaluation or formulation of related policies or guidelines, (5) Subparagraph 241(4)(d)(vii.10) of the Act is renumbered as subparagraph 241(4)(d)(vii.91). (6) Paragraph 241(4)(h) of the Act is replaced by the following: (h) use, or provide to any person, taxpayer 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, the Canada Pension Plan or the Employment Insurance Act , to the extent that the information is relevant for the purpose; (7) The definition authorized person in subsection 241(10) of the Act is replaced by the following: 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, the Canada Pension Plan or the Employment Insurance Act ; ( personne autorisée ) (8) Subsection (4) is deemed to have come into force on March 28, 2023, except that, before January 1, 2024, subparagraph 241(4)(d)(vi.2) of the Act (as enacted by subsection (4)) is to be read without reference to section 127.49. 75 (1) Paragraph (d) of the definition automobile in subsection 248(1) of the Act is replaced by the following: (d) except for the purposes of sections 6 and 15, a motor vehicle acquired to be sold, rented or leased in the course of carrying on a business of selling, renting or leasing motor vehicles or a motor vehicle used for the purpose of transporting passengers in the course of carrying on a business of arranging or managing funerals, and (2) Subsection (1) is deemed to have come into force on August 4, 2023. 76 (1) Subsection 250(6) of the Act is amended by striking out “and” at the end of paragraph (b), by adding “and” at the end of paragraph (c) and by adding the following after paragraph (c): (d) the corporation files an election in prescribed form and manner in respect of the year. (2) The portion of subsection 250(6.03) of the Act before paragraph (a) is replaced by the following: Service providers (6.03) If this subsection applies for a taxation year, then for the purposes of subsection (6) and paragraphs 81(1)(c) and (c.1), (3) The definition eligible entity in subsection 250(6.04) of the Act is amended by striking out “or” at the end of paragraph (a) and by adding the following after that paragraph: (a.1) a corporation resident in Canada (if this Act were read without reference to subsection (4)) that satisfies the conditions set out in paragraphs (6)(a) and (b); or (4) Subsections (1) to (3) apply to taxation years that begin on or after December 31, 2023. C.R.C., c. 945 Income Tax Regulations 77 (1) The definition remuneration in subsection 100(1) of the Income Tax Regulations is amended by striking out “or” at the end of paragraph (p), by adding “or” at the end of paragraph (q) and by adding the following after paragraph (q): (r) an amount that is required by subparagraph 56(1)(a)(viii) of the Act to be included in computing the taxpayer’s income; ( rémunération ) (2) Subsection (1) is deemed to have come into force on April 1, 2019. 78 (1) Subclause (a)(i)(J)(I) of the definition qualified zero-emission technology manufacturing activities in section 5202 of the Regulations is replaced by the following: (I) would be a zero-emission vehicle (as defined in subsection 248(1) of the Act if that definition were read without reference to its paragraphs (b) to (d)), or (2) Subsection (1) is deemed to have come into force on January 1, 2024. 79 (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 (xiv) that is installed in the exclusive economic zone of Canada, Coordinating Amendments Bill C-59 80 (1) Subsections (2) to (212) apply if Bill C-59, introduced in the 1st session of the 44th Parliament and entitled the Fall Economic Statement Implementation Act, 2023 (in this section referred to as the “other Act”), receives royal assent. (2) Paragraph 12(1)(t) of the Income Tax Act , as enacted by subsection 5 (1) of this Act, is replaced by the following: Investment tax credit (t) the amount deducted under subsection 127(5) or (6), 127.44(3), 127.45(6) or 127.48(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) to (vi.3) 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); (3) Paragraph 12(1)(t) of the Income Tax Act , as enacted by subsection 5 (2) of this Act, is replaced by the following: Investment tax credit (t) the amount deducted under subsection 127(5) or (6), 127.44(3), 127.45(6), 127.48(3) or 127.49(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 (vi.4) 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) The portion of subsection 13(7.1) of the Income Tax Act before paragraph (a), as enacted by subsection 6 (2) of this Act, 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), 127.45(6) or 127.48(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 (5) The portion of subsection 13(7.1) of the Income Tax Act before paragraph (a), as enacted by subsection 6 (3) of this Act, 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), 127.45(6), 127.48(3) or 127.49(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 (6) Paragraph 13(7.1)(e) of the Income Tax Act , as enacted by subsection 6 (5) of this 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), 127.44(3), 127.45(6) or 127.48(3) by the taxpayer for a taxation year ending before the particular time, (7) Paragraph 13(7.1)(e) of the Income Tax Act , as enacted by subsection 6 (6) of this 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), 127.44(3), 127.45(6), 127.48(3) or 127.49(6) by the taxpayer for a taxation year ending before the particular time, (8) The description of I in the definition undepreciated capital cost in subsection 13(21) of the Income Tax Act , as enacted by subsection 6 (7) of this Act, is replaced by the following: I is the total of all amounts deducted under subsection 127(5) or (6), 127.44(3), 127.45(6) or 127.48(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, (9) The description of I in the definition undepreciated capital cost in subsection 13(21) of the Income Tax Act , as enacted by subsection 6 (8) of this Act, is replaced by the following: I is the total of all amounts deducted under subsection 127(5) or (6), 127.44(3), 127.45(6), 127.48(3) or 127.49(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, (10) The portion of paragraph 13(24)(a) of the Income Tax Act before subparagraph (i), as enacted by subsection 6 (9) of this Act, 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, 127.45 and 127.48, the property is deemed (11) The portion of paragraph 13(24)(a) of the Income Tax Act before subparagraph (i), as enacted by subsection 6 (10) of this Act, 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, 127.45, 127.48 and 127.49, the property is deemed (12) The portion of paragraph (l) in the description of B in the definition adjusted taxable income in subsection 18.2(1) of the Income Tax Act before subparagraph (ii) is replaced by the following: (l) an amount deducted under subsection 127(5) or (6), 127.44(3), 127.45(6) or 127.48(3) 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.3) or (h)(ii) or for I in the definition undepreciated capital cost in subsection 13(21), and (13) The portion of paragraph (l) in the description of B in the definition adjusted taxable income in subsection 18.2(1) of the Income Tax Act before subparagraph (ii), as enacted by subsection (12), is replaced by the following: (l) an amount deducted under subsection 127(5) or (6), 127.44(3), 127.45(6), 127.48(3) or 127.49(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.4) or (h)(ii) or for I in the definition undepreciated capital cost in subsection 13(21), and (14) Subparagraph 53(1)(e)(xiii) of the Income Tax Act , as enacted by subsection 10 (1) of this Act, is replaced by the following: (xiii) any amount required by subsection 127(30) or 127.45(17) or section 127.48 or 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; (15) Subparagraph 53(1)(e)(xiii) of the Income Tax Act , as enacted by subsection 10 (2) of this Act, is replaced by the following: (xiii) any amount required by subsection 127(30), 127.45(17), section 127.48, subsection 127.49(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; (16) Subparagraph 53(2)(c)(viii.1) of the Income Tax Act , as enacted by subsection 10 (3) of this Act, is renumbered as subparagraph 53(2)(c)(vi.3) and is repositioned accordingly. (17) Subparagraph 53(2)(c)(viii.2) of the Income Tax Act , as enacted by subsection 10 (4) of this Act, is renumbered as subparagraph 53(2)(c)(vi.4) and is repositioned accordingly. (18) Subclause 66.8(1)(a)(ii)(B)(I) of the Income Tax Act , as enacted by subsection 15 (1) of this Act, is replaced by the following: (I) the total of all amounts required by subsections 127(8), 127.44(11), 127.45(8) and 127.48(12) 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)), the clean technology investment tax credit (as defined in subsection 127.45(1)) or the clean hydrogen tax credit (as defined in subsection 127.48(1)) of the taxpayer in respect of the fiscal period, and (19) Subclause 66.8(1)(a)(ii)(B)(I) of the Income Tax Act , as enacted by subsection 15 (2) of this Act, is replaced by the following: (I) the total of all amounts required by subsections 127(8), 127.44(11), 127.45(8), 127.48(12) and 127.49(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)), the clean technology investment tax credit (as defined in subsection 127.45(1)), the clean hydrogen tax credit (as defined in subsection 127.48(1)) or the CTM investment tax credit (as defined in subsection 127.49(1)) of the taxpayer in respect of the fiscal period, and (20) Paragraph 87(2)(j.6) of the Income Tax 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) and 84.1(2.31) and (2.32), section 110.61, subsection 127(10.2), section 139.1, subsection 152(4.3), the determination of D in the definition undepreciated capital cost in subsection 13(21), the determination of L in the definition cumulative Canadian exploration expense in subsection 66.1(6) and the definition qualifying business transfer in subsection 248(1), the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation; (21) Paragraph 87(2)(qq.1) of the Income Tax Act , as enacted by subsection 18 (1) of this Act, is deemed to have been repealed immediately after the expiration of March 27, 2023. (22) Paragraph 87(2)(qq.1) of the Income Tax Act , as enacted by subsection 18 (2) of this Act, is deemed to have been repealed on January 1, 2024. (23) Paragraph 87(2)(qq.1) of the Income Tax Act , as enacted by subsection 18(2) of the other Act, is replaced by the following: Continuation of corporation (qq.1) for the purposes of sections 127.44, 127.45 and 127.48 and Part XII.7, the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation; (24) Paragraph 87(2)(qq.1) of the Income Tax Act , as enacted by subsection (23), is replaced by the following: Continuation of corporation (qq.1) for the purposes of sections 127.44, 127.45, 127.48 and 127.49 and Part XII.7, the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation; (25) Paragraph 88(1)(e.31) of the Income Tax Act , as enacted by subsection 19 (1) of this Act, is deemed to have been repealed immediately after the expiration of March 27, 2023. (26) Paragraph 88(1)(e.31) of the Income Tax Act , as enacted by subsection 19 (2) of this Act, is deemed to have been repealed on January 1, 2024. (27) Paragraph 88(1)(e.31) of the Income Tax Act , as enacted by subsection 19(1) of the other Act, is replaced by the following: (e.31) for the purposes of sections 127.44, 127.45 and 127.48 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; (28) Paragraph 88(1)(e.31) of the Income Tax Act , as enacted by subsection (27), is replaced by the following: (e.31) for the purposes of sections 127.44, 127.45, 127.48 and 127.49 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; (29) Paragraph 88(2)(c) of the Income Tax Act , as enacted by subsection 19 (3) of this 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: “(t) the amount deducted under subsection 127(5) or (6), 127.44(3), 127.45(6) or 127.48(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) to (c)(vi.3) 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);”. (30) Paragraph 88(2)(c) of the Income Tax Act , as enacted by subsection 19 (4) of this 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: “(t) the amount deducted under subsection 127(5) or (6), 127.44(3), 127.45(6), 127.48(3) or 127.49(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.4) 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);”. (31) Subparagraph 96(2.1)(b)(ii) of the Income Tax Act , as enacted by subsection 22 (1) of this Act, is replaced by the following: (ii) the amount required by subsection 127(8), 127.44(11), 127.45(8) or 127.48(12) 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)), the clean technology investment tax credit (as defined in subsection 127.45(1)) or the clean hydrogen tax credit (as defined in subsection 127.48(1)) of the taxpayer for the taxation year, (32) Subparagraph 96(2.1)(b)(ii) of the Income Tax Act , as enacted by subsection 22 (2) of this Act, is replaced by the following: (ii) the amount required by subsection 127(8), 127.44(11), 127.45(8), 127.48(12) or 127.49(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)), the clean technology investment tax credit (as defined in subsection 127.45(1)), the clean hydrogen tax credit (as defined in subsection 127.48(1)) or the CTM investment tax credit (as defined in subsection 127.49(1)) of the taxpayer for the taxation year, (33) The portion of subsection 96(2.2) of the Income Tax Act before paragraph (a), as enacted by subsection 22 (3) of this Act, is replaced by the following: At-risk amount (2.2) For the purposes of this section and sections 111, 127, 127.44, 127.45, 127.47 and 127.48, 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 (34) The portion of subsection 96(2.2) of the Income Tax Act before paragraph (a), as enacted by subsection 22 (4) of this Act, is replaced by the following: At-risk amount (2.2) For the purposes of this section and sections 111, 127, 127.44, 127.45, 127.47, 127.48 and 127.49, 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 (35) The portion of subsection 96(2.4) of the Income Tax Act before paragraph (a), as enacted by subsection 22 (5) of this Act, is replaced by the following: Limited partner (2.4) For the purposes of this section and sections 111, 127, 127.44, 127.45, 127.47 and 127.48, 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, (36) The portion of subsection 96(2.4) of the Income Tax Act before paragraph (a), as enacted by subsection 22 (6) of this Act, is replaced by the following: Limited partner (2.4) For the purposes of this section and sections 111, 127, 127.44, 127.45, 127.47, 127.48 and 127.49, 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, (37) The Income Tax Act is amended by adding the following after section 110.6: Capital gains deduction for qualifying business transfer – conditions 110.61 (1) Subsection (2) applies to an individual (other than a trust) if, at the time of a disposition (referred to in this section as the “disposition time”) of shares of the capital stock (referred to in this section as the “subject shares”) of a corporation (referred to in this section as the “subject corporation”) to a trust (or to a purchaser corporation wholly owned by the trust) that occurred after 2023 and before 2027 under a qualifying business transfer, the following conditions are met: (a) no individual has prior to the disposition time sought a deduction under this section in respect of a disposition of shares that, at the time of that disposition, derived their value from an active business that is also relevant to the determination of whether the disposition of the subject shares satisfies the condition set out in paragraph (a) of the definition qualifying business transfer in subsection 248(1); (b) throughout the 24 months immediately preceding the disposition time, (i) the subject shares were not owned by anyone other than the individual or a person or partnership related to the individual, and (ii) more than 50% of the fair market value of the subject shares was derived from assets which were used principally in an active business; (c) immediately before the disposition time, (i) the subject corporation and each corporation affiliated with the subject corporation in which the subject corporation owns (directly or indirectly) shares is not a professional corporation, and (ii) the trust does not control a corporation whose employees are beneficiaries of the trust; (d) at the disposition time, (i) the individual is at least 18 years of age, (ii) throughout any 24-month period ending before the disposition time, the individual, or a spouse or common-law partner of the individual, was actively engaged on a regular and continuous basis in the business that is relevant to the determination of whether the subject shares satisfy the condition set out in paragraph (a) of the definition qualifying business transfer in subsection 248(1), and (iii) at least 75% of the beneficiaries of the trust are resident in Canada; and (e) the trust, any purchaser corporation owned by the trust, the individual and any other individual entitled to a deduction under subsection (2) in respect of the qualifying business transfer (i) jointly elect, in prescribed form, for the deduction provided under subsection (2) to apply in respect of the disposition of the subject shares, (ii) include the following information in the election: (A) an amount (in this paragraph referred to as the “elected amount”) equal to the total amount of capital gains that the parties agree may be eligible for a deduction under subsection (2) with respect to the qualifying business transfer, not exceeding $10,000,000, and (B) if more than one individual is eligible for a deduction in respect of the qualifying business transfer, the percentage of the elected amount that is assigned to each eligible individual (provided that the total percentages assigned to all individuals cannot exceed 100%), and (iii) file the election with the Minister on or before the trust’s filing-due date for the taxation year that includes the disposition time. Capital gains deduction — qualifying business transfers (2) If this subsection applies to an individual, in computing the taxable income for a taxation year of the individual, there may be deducted such amount as the individual may claim not exceeding the least of (a) the amount that would be determined in respect of the individual for the year under paragraph 3(b) (to the extent that that amount is not included in computing an amount determined under paragraph 110.6(2)(d) or (2.1)(d) for the individual) in respect of capital gains and capital losses if the only properties referred to in paragraph 3(b) were the subject shares of the individual, and (b) an amount determined by the formula A × B × C − D where A is the elected amount (within the meaning of clause (1)(e)(ii)(A)) included in the joint election referred to in paragraph (1)(e), B is (i) 1, unless more than one individual is entitled to a deduction under this subsection in respect of the qualifying business transfer, (ii) the percentage assigned to the individual in the joint election referred to in paragraph (1)(e), if a percentage is assigned to the individual in accordance with clause (1)(e)(ii)(B), and (iii) in any other case, nil, C is the fraction of the taxpayer’s capital gain from the disposition of the subject shares that is a taxable capital gain under paragraph 38(a) that applies to the subject shares in the year, and D is the total of each amount claimed by the taxpayer under this subsection in a prior taxation year in respect of the disposition of the subject shares multiplied by the amount determined by the formula E ÷ F where E is the fraction of a capital gain that is a taxable capital gain under paragraph 38(a) in the current year, and F is the fraction of a capital gain that is a taxable capital gain under paragraph 38(a) in the prior year in respect of the disposition of the subject shares. Disqualifying event (3) For the purposes of this section, a disqualifying event in respect of a qualifying business transfer occurs at the earliest of (a) the time when the trust that participated in the qualifying business transfer ceases to be an employee ownership trust, and (b) the time that is the beginning of the taxation year of a qualifying business of the trust in which less than 50% of the fair market value of the shares of the qualifying business is attributable to assets used principally in an active business carried on by one or more qualifying businesses controlled by the trust at both that time and at the beginning of the preceding taxation year of the qualifying business. Consequences of a disqualifying event (4) If a disqualifying event in respect of a qualifying business transfer occurs (a) within 24 months of the disposition time for the qualifying business transfer, subsection (2) is deemed to have never applied in respect of the subject shares disposed of under the qualifying business transfer; or (b) any time after the day that is 24 months after the disposition time for the qualifying business transfer, in computing the income of the trust that participated in the qualifying business transfer, the trust is deemed to have a gain equal to the elected amount (within the meaning of clause (1)(e)(ii)(A)) included in the joint election referred to in paragraph (1)(e), for the year in which the disqualifying event occurs, from the disposition of a capital property. Anti-avoidance (5) Despite any other provision in this section, subsection (2) does not apply in respect of a qualifying business transfer 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 (a) involve the trust (or the purchaser corporation) in the qualifying business transfer to accommodate the direct or indirect acquisition of subject shares (or the acquisition of all or substantially all of the risk of loss and opportunity for gain or profit in respect of the subject shares) by another person or partnership (other than the trust or the purchaser corporation) in a manner that permits an individual to claim a deduction under subsection (2) that would otherwise not be available; or (b) organize or reorganize a subject corporation or any other corporation, partnership or trust in a manner that allows a deduction to be claimed under subsection (2) in respect of more than one qualifying business transfer of a business that is relevant to the determination of whether subject shares satisfied the condition set out in paragraph (a) of the definition qualifying business transfer in subsection 248(1). Failure to report capital gain (6) Despite subsection (2), no amount may be deducted under this section in respect of a capital gain of an individual for a particular taxation year in computing the individual’s taxable income for the particular taxation year or any subsequent year, if (a) the individual knowingly or under circumstances amounting to gross negligence (i) fails to file the individual’s return of income for the particular taxation year within one year after the taxpayer’s filing-due date for the particular taxation year, or (ii) fails to report the capital gain in the individual’s return of income for the particular taxation year; and (b) the Minister establishes the facts justifying the denial of such an amount under this section. Deduction not permitted (7) Despite subsection (2), no amount may be deducted under this section in computing an individual’s taxable income for a taxation year in respect of a capital gain of the individual for the taxation year if the capital gain is from a disposition of property which disposition is part of a series of transactions or events (a) that includes a dividend received by a corporation to which dividend subsection 55(2) does not apply but would apply if this Act were read without reference to paragraph 55(3)(b); or (b) in which any property is acquired by a corporation or partnership for consideration that is significantly less than the fair market value of the property at the time of acquisition (other than an acquisition as the result of an amalgamation or merger of corporations or the winding-up of a corporation or partnership or a distribution of property of a trust in satisfaction of all or part of a corporation’s capital interest in the trust). Deduction not permitted (8) Despite subsection (2), if an individual has a capital gain for a taxation year from the disposition of a property and it can reasonably be concluded, having regard to all the circumstances, that a significant part of the capital gain is attributable to the fact that dividends were not paid on a share (other than a prescribed share within the meaning of subsection 110.6(8)) or that dividends paid on such a share in the taxation year or in any preceding taxation year were less than 90% of the average annual rate of return on that share for that year, no amount in respect of that capital gain shall be deducted under this section in computing the individual’s taxable income for the year. Average annual rate of return (9) For the purpose of subsection (8), the average annual rate of return on a share (other than a prescribed share within the meaning of subsection 110.6(8)) of a corporation for a taxation year is the annual rate of return by way of dividends that a knowledgeable and prudent investor who purchased the share on the day it was issued would expect to receive in that year, other than the first year after the issue, in respect of the share if (a) there was no delay or postponement of the payment of dividends and no failure to pay dividends in respect of the share; (b) there was no variation from year to year in the amount of dividends payable in respect of the share (other than where the amount of dividends payable is expressed as an invariant percentage of or by reference to an invariant difference between the dividend expressed as a rate of interest and a generally quoted market interest rate); and (c) the proceeds to be received by the investor on the disposition of the share are the same amount the corporation received as consideration on the issue of the share. Deduction not permitted (10) If it is reasonable to consider that one of the main reasons for an individual acquiring, holding or having an interest in a partnership or trust (other than an interest in a personal trust) or for the existence of any terms, conditions, rights or other attributes of the interest is to enable the individual to receive or have allocated to the individual a percentage of any capital gain or taxable capital gain of the partnership or trust that is larger than the individual’s percentage of the income of the partnership or trust, as the case may be, despite any other provision of this Act, no amount may be deducted under subsection (2) by the individual in respect of any such gain allocated or distributed to the individual. Related persons, etc. (11) For the purposes of this section, (a) a taxpayer shall be deemed to have disposed of shares that are identical properties in the order in which the taxpayer acquired them; (b) a personal trust shall be deemed (i) to be related to a person or partnership for any period throughout which the person or partnership was a beneficiary of the trust, and (ii) in respect of shares of the capital stock of a corporation, to be related to the person from whom it acquired those shares if, at the time the trust disposed of the shares, all of the beneficiaries (other than registered charities) of the trust were related to that person or would have been so related if that person were living at that time; (c) a partnership shall be deemed to be related to a person for any period throughout which the person was a member of the partnership; (d) a person who is a member of a partnership that is a member of another partnership is deemed to be a member of the other partnership; (e) if a corporation acquires shares of a class of the capital stock of another corporation from any person, it shall be deemed in respect of those shares to be related to the person if all or substantially all the consideration received by that person from the corporation in respect of those shares was common shares of the capital stock of the corporation; and (f) shares issued by a corporation to a particular person or partnership shall be deemed to have been owned immediately before their issue by a person who was not related to the particular person or partnership unless the shares were issued (i) as consideration for other shares, (ii) as part of a transaction or series of transactions in which the person or partnership disposed of property to the corporation that consisted of (A) all or substantially all the assets used in an active business carried on by that person or the members of that partnership, or (B) an interest in a partnership all or substantially all the assets of which were used in an active business carried on by the members of the partnership, or (iii) as payment of a stock dividend. (38) Clause 111(1)(e)(ii)(A) of the Income Tax Act , as enacted by subsection 24 (1) of this Act, is replaced by the following: (A) the amount required by subsection 127(8), 127.44(11), 127.45(8) or 127.48(12) 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)), the clean technology investment tax credit (as defined in subsection 127.45(1)) or the clean hydrogen tax credit (as defined in subsection 127.48(1)) of the taxpayer for the taxation year, (39) Clause 111(1)(e)(ii)(A) of the Income Tax Act , as enacted by subsection 24 (2) of this Act, is replaced by the following: (A) the amount required by subsections 127(8), 127.44(11), 127.45(8), 127.48(12) or 127.49(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)), the clean technology investment tax credit (as defined in subsection 127.45(1)), the clean hydrogen tax credit (as defined in subsection 127.48(1)) or the CTM investment tax credit (as defined in subsection 127.49(1)) of the taxpayer for the taxation year (40) Paragraph (b) of the description of E in the definition non-capital loss in subsection 111(8) of the Income Tax 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 (g) and (k), section 112 and subsections 113(1) and 138(6), in computing the taxpayer’s taxable income for the year, or (41) The definition government assistance in subsection 127(9) of the Income Tax Act , as enacted by subsection 34 (3) of this 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 an excluded loan (as defined in subsection 12(11)) or as a deduction under subsection (5) or (6) or a deemed payment on account of tax payable under subsection 127.44(2); ( aide gouvernementale ) (42) The definition government assistance in subsection 127(9) of the Income Tax Act , as enacted by subsection 34 (4) of this 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 an excluded loan (as defined in subsection 12(11)) or as a deduction under subsection (5) or (6) or a deemed payment on account of tax payable under subsection 127.44(2), 127.45(2) or 127.48(2); ( aide gouvernementale ) (43) The definition government assistance in subsection 127(9) of the Income Tax Act , as enacted by subsection 34 (5) of this 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 an excluded loan (as defined in subsection 12(11)) or as a deduction under subsection (5) or (6) or a deemed payment on account of tax payable under subsection 127.44(2), 127.45(2), 127.48(2) or 127.49(2); ( aide gouvernementale ) (44) The definition dedicated geological storage in subsection 127.44(1) of the Income Tax Act is replaced by the following: dedicated geological storage  means a geological formation that is (a) located in a designated jurisdiction; (b) capable of permanently storing captured carbon; (c) authorized and regulated for the storage of captured carbon under the laws of the designated jurisdiction; and (d) a formation in which no captured carbon is used for enhanced oil recovery.‍ ( stockage géologique dédié ) (45) The portion of the definition dual-use equipment in subsection 127.44(1) of the Income Tax Act before paragraph (b) is replaced by the following: dual-use equipment  means property, other than property described in Class 57 or 58 of Schedule II to the Income Tax Regulations , that is part of a CCUS project of a taxpayer 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, that 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 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 equipment that directly transmits electrical energy from a system described in subparagraph (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 equipment that distributes electrical or heat energy; (46) The portion of the definition dual-use equipment in subsection 127.44(1) of the Income Tax Act before paragraph (b), as enacted by subsection (45), is replaced by the following: dual-use equipment   means property, other than property described in Class 57 or 58 of Schedule II to the Income Tax Regulations , that is part of a CCUS project of a taxpayer 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, that 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 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) a qualified clean hydrogen project as defined in subsection 127.48(1), 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 equipment that directly transmits electrical energy from a system described in subparagraph (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 a qualified clean hydrogen project as defined in subsection 127.48(1), or (iv) is equipment that distributes electrical or heat energy; (47) The portion of paragraph (c) of the definition dual-use equipment in subsection 127.44(1) of the Income Tax Act before subparagraph (i) is replaced by the following: (c) property that is (48) The portion of the definition preliminary CCUS work activity in subsection 127.44(1) of the Income Tax Act before paragraph (a) is replaced by the following: 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 that is described in Class 57 or 58 of Schedule II to the Income Tax Regulations or that is dual-use equipment in respect of the taxpayer’s CCUS project including, but not limited to, a preliminary activity that is (49) Paragraph (d) of the definition project plan in subsection 127.44(1) of the Income Tax Act is replaced by the following: (d) is filed with the Minister of Natural Resources, in the form and manner determined by that Minister, (i) before the project’s first day of commercial operations, or (ii) if the project’s first day of commercial operations occurs before the Minister of Natural Resources accepts plan filings, within 90 days after the first day on which such filings are accepted. ( plan de projet ) (50) Subparagraph (b)(iv) of the description of A in the definition qualified carbon capture expenditure in subsection 127.44(1) of the Income Tax Act is replaced by the following: (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 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; (51) The portion of paragraph (a) of the definition specified percentage in subsection 127.44(1) of the Income Tax Act before subparagraph (i) is replaced by the following: (a) qualified carbon capture expenditure if incurred in respect of carbon capture (52) Subsection 127.44(3) of the Income Tax Act is replaced by the following: 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 129 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. (53) Subsection 127.44(3) of the Income Tax Act , as enacted by subsection (52), is replaced by the following: 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), sections 127.45, 127.48 and 129 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. (54) Subsection 127.44(3) of the Income Tax Act , as enacted by subsection (53), is replaced by the following: 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), sections 127.45, 127.48, 127.49 and 129 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. (55) Subparagraph 127.44(8)(a)(ii) of the Income Tax Act is replaced by the following: (ii) if a taxpayer is required to file a revised project plan because of subsection (6), 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, (56) The portion of paragraph 127.44(9)(a) of the Income Tax Act before subparagraph (i) is replaced by the following: (a) the capital cost to a taxpayer of a property that is described in Class 57 or 58 of Schedule II to the Income Tax Regulations or that is dual-use equipment shall be (57) Subparagraph 127.44(9)(a)(ii) of the Income Tax Act is replaced by the following: (ii) reduced by the total of all amounts, each of which can reasonably be considered to be in respect of the property and is (A) an amount of any non-government assistance received by the taxpayer in or before the taxation year in which the property was acquired, or (B) an amount that is not described in clause (A) that, in the taxation year, the taxpayer is entitled to receive or can reasonably be expected to receive and that would be non-government assistance if it were received by the taxpayer; (58) Clause 127.44(9)(b)(ii)(C) of the Income Tax Act is replaced by the following: (C) for which an investment tax credit, a clean technology investment tax credit (as defined in subsection 127.45(1)) or a clean hydrogen tax credit (as defined in subsection 127.48(1)) is claimed, (59) Clause 127.44(9)(b)(ii)(C) of the Income Tax Act , as enacted by subsection (58), is replaced by the following: (C) for which an investment tax credit, a clean technology investment tax credit (as defined in subsection 127.45(1)), a clean hydrogen tax credit (as defined in subsection 127.48(1)) or a CTM investment tax credit (as defined in subsection 127.49(1)) is claimed, (60) Subsection 127.44(9) of the Income Tax Act is amended by adding the following after paragraph (g): (h) subject to paragraph (e), an expenditure is deemed to have been incurred in respect of a qualified CCUS project during a particular taxation year if (i) it is incurred in the particular taxation year, in respect of a CCUS project that was not a qualified CCUS project at any time during the particular taxation year because the Minister of Natural Resources was not accepting the filing of project plans before or during the particular taxation year, and (ii) in a subsequent taxation year, the project becomes a qualified CCUS project; and (i) a building or other structure is deemed to be property described in paragraph (f) of Class 57 of Schedule II to the Income Tax Regulations , in relation to equipment described in paragraph (a) of Class 57, if (i) the building or other structure is not otherwise described in Class 57 or 58 of that Schedule and is not dual-use equipment, and (ii) all or substantially all of the building or other structure is used for the installation or operation of a combination of property that is described in any of paragraphs (a) to (e) of Class 57 of Schedule II, paragraphs (a) to (c) of Class 58 of that Schedule or paragraph (a) or (b) or subparagraph (c)(i) of the definition dual-use equipment in subsection (1). (61) Section 127.44 of the Income Tax Act is amended by adding the following after subsection (14): Jurisdiction not designated (14.1) In applying this section and Part XII.7 in respect of a CCUS project of a taxpayer, (a) if an expenditure of the taxpayer is incurred at a time that a geological formation, described in the taxpayer’s most recent project plan in respect of the CCUS project as capable of permanently storing captured carbon, is (i) located in a jurisdiction that is not a designated jurisdiction, that jurisdiction is deemed to be a designated jurisdiction at that time if it was so designated at the time of an earlier qualified CCUS expenditure of the taxpayer in respect of the project, or (ii) not authorized and regulated for the storage of captured carbon under the laws of the designated jurisdiction, that geological formation is deemed to be so authorized and regulated if it was so at the time of an earlier qualified CCUS expenditure of the taxpayer in respect of the project; (b) if neither subparagraph (a)(i) nor subparagraph (a)(ii) apply in respect of a particular expenditure, then (i) for the purposes of calculating a qualified carbon capture expenditure or a qualified carbon transportation expenditure in respect of the particular expenditure, neither the description of A in the definition projected eligible use percentage in subsection (1) nor the description of A in the definition actual eligible use percentage in subsection 211.92(1), for any period, include any quantity of expected or actual storage of carbon in a geological formation located in a jurisdiction that, at the time that the particular expenditure is incurred, is not dedicated geological storage because it is located in a jurisdiction that is not a designated jurisdiction or is not authorized and regulated for the storage of captured carbon under the laws of a designated jurisdiction, (ii) a qualified carbon storage expenditure in respect of a qualified CCUS project does not include the cost of property to the extent that the property is expected to support the storage of carbon in a geological formation located in a jurisdiction that, at the time that the particular expenditure is incurred, is not dedicated geological storage because it is located in a jurisdiction that is not a designated jurisdiction or is not authorized and regulated for the storage of captured carbon under the laws of a designated jurisdiction; and (c) for the purposes of calculating the actual eligible use percentage in respect of the CCUS project for any period, the description of A in the definition actual eligible use percentage in subsection 211.92(1) includes any quantity of carbon stored in a geological formation to which paragraph (a) applies. (62) Subsection 127.44(17) of the Income Tax Act is replaced by the following: Late filing (17) The Minister may accept the late filing by a qualifying taxpayer of the prescribed form containing prescribed information referred to in subsection (2) until the later of December 31, 2025 and 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 prescribed form containing prescribed information has been filed with the Minister. (63) Subsection 127.45(3) of the Income Tax Act is replaced by the following: 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 and, if the prescribed form is filed after the taxpayer’s filing-due date for the year, no payment is deemed to arise under that subsection until the prescribed form containing the prescribed information has been filed with the Minister. (64) The portion of subsection 127.45(5) of the Income Tax Act before paragraph (a) is replaced by the following: 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 to a taxpayer shall (65) Subparagraph 127.45(5)(a)(ii) of the Income Tax Act is replaced by the following: (ii) in respect of which a CCUS tax credit (as defined in subsection 127.44(1)) or a clean hydrogen tax credit (as defined in subsection 127.48(1)) was deducted by any person, or (66) Subparagraph 127.45(5)(a)(ii) of the Income Tax Act , as enacted by subsection (65), is replaced by the following: (ii) in respect of which a CCUS tax credit (as defined in subsection 127.44(1)), a clean hydrogen tax credit (as defined in subsection 127.48(1)) or a CTM investment tax credit (as defined in subsection 127.49(1)) was deducted by any person, or (67) Paragraph 127.45(5)(b) of the Income Tax Act is replaced by the following: (b) be determined without reference to subsections 13(7.1) and (7.4); (b.1) be reduced by the total of all amounts, each of which can reasonably be considered to be in respect of the property and is (i) an amount of any government assistance or non-government assistance received by the taxpayer in or before the taxation year in which the property was acquired, or (ii) an amount not described in subparagraph (i) that, in the taxation year, the taxpayer is entitled to or can reasonably be expected to receive and that would be government assistance or non-government assistance if it were received by the taxpayer; (68) Subsection 127.45(6) of the Income Tax Act is replaced by the following: 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), subsection 53(2) and sections 127.44, 127.48 and 129, 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. (69) Subsection 127.45(6) of the Income Tax Act , as enacted by subsection (68), is replaced by the following: 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) and sections 127.44, 127.48, 127.49 and 129, 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. (70) The definitions designated work site , regular tax credit rate and specified tax credit in subsection 127.46(1) of the Income Tax Act are replaced by the following: 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) or of a clean hydrogen project (as defined in section 127.48) of the incentive claimant. ( chantier désigné ) regular tax credit rate  means the specified percentage (as defined in subsections 127.44(1), 127.45(1) and 127.48(1), as the case may be). ( taux du crédit d’impôt régulier ) specified tax credit  means the CCUS tax credit under subsection 127.44(1), the clean technology investment tax credit under subsection 127.45(1) and the clean hydrogen tax credit under subsection 127.48(1). ( crédit d’impôt déterminé ) (71) Subsection 127.46(2) of the Income Tax Act is replaced by the following: Reduced or regular rate (2) Despite sections 127.44, 127.45 and 127.48, 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. (72) The definition clean economy allocation provision in subsection 127.47(1) of the Income Tax 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) subsection 127.48(12). ( disposition d’allocation pour l’économie propre ) (73) The definition clean economy allocation provision in subsection 127.47(1) of the Income Tax Act , as amended by subsection (72), 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) subsection 127.49(8). ( disposition d’allocation pour l’économie propre ) (74) The definition clean economy expenditure in subsection 127.47(1) of the Income Tax 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 capital cost of eligible clean hydrogen property as determined under section 127.48. ( dépense pour l’économie propre ) (75) The definition clean economy expenditure in subsection 127.47(1) of the Income Tax Act , as amended by subsection (74), 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) the capital cost of CTM property as determined under section 127.49.  ( dépense pour l’économie propre ) (76) The definition clean economy provision in subsection 127.47(1) of the Income Tax Act is amended by striking out “or” at the end of paragraph (c) and by adding the following after paragraph (d): (e) section 127.48; or (f) section 127.49. ( disposition pour l’économie propre ) (77) The definition clean economy tax credit in subsection 127.47(1) of the Income Tax 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) a clean hydrogen tax credit (as defined under section 127.48(1)). ( crédit d’impôt pour l’économie propre ) (78) The definition clean economy tax credit in subsection 127.47(1) of the Income Tax Act , as amended by subsection (77), 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) a CTM investment tax credit (as defined under section 127.49(1)). ( crédit d’impôt pour l’économie propre ) (79) Section 127.48 of the Income Tax Act , as enacted by subsection 37 (1) of this Act, is deemed to have been repealed immediately after the expiration of March 27, 2023. (80) The Income Tax Act is amended by adding the following after section 127.47: Definitions 127.48 (1) The following definitions apply in this section. actual carbon intensity  means the carbon intensity of hydrogen that is produced by a qualified clean hydrogen project of a taxpayer, based on the actual inputs to the production of hydrogen and actual emissions from the production of hydrogen by the project. ( intensité carbonique réelle ) average actual carbon intensity  means, for the compliance period of a clean hydrogen project, the number determined by the formula  ((A × B) + (C × D) + (E × F) + (G × H) + (I × J)) ÷ K where A is the actual carbon intensity of the project for the first operating year of the compliance period; B is the quantity, in kilograms, of hydrogen produced by the project in the first operating year of the compliance period; C is the actual carbon intensity of the project for the second operating year of the compliance period; D is the quantity, in kilograms, of hydrogen produced by the project in the second operating year of the compliance period; E is the actual carbon intensity of the project for the third operating year of the compliance period; F is the quantity, in kilograms, of hydrogen produced by the project in the third operating year of the compliance period; G is the actual carbon intensity of the project for the fourth operating year of the compliance period; H is the quantity, in kilograms, of hydrogen produced by the project in the fourth operating year of the compliance period; I is the actual carbon intensity of the project for the fifth operating year of the compliance period; J is the quantity, in kilograms, of hydrogen produced by the project in the fifth operating year of the compliance period; and K is the total quantity, in kilograms, of hydrogen produced by the project during the compliance period. ( intensité carbonique réelle moyenne ) captured carbon  has the same meaning as in subsection 127.44(1). ( carbone capté ) carbon dioxide equivalent  means the carbon dioxide emissions that would be required to produce a warming effect equivalent to the emissions of any specified greenhouse gas, as determined in accordance with the Clean Hydrogen Investment Tax Credit – Carbon Intensity Modelling Guidance Document published by the Government of Canada over an assessment period of 100 years. ( équivalent en dioxyde de carbone ) carbon intensity  means the quantity in kilograms of carbon dioxide equivalent per kilogram of hydrogen produced. ( intensité carbonique ) CCUS process  has the same meaning as in subsection 127.44(1). ( processus de CUSC ) CFR carbon intensity  means carbon intensity as defined in subsection 1(1) of the Clean Fuel Regulations . ( intensité carbonique selon le RCP ) clean ammonia  means ammonia produced from clean hydrogen. ( ammoniac propre ) clean ammonia equipment  means equipment that is used solely for the purpose of producing ammonia, including equipment for (a) converting hydrogen into ammonia; (b) heat recovery and conversion; (c) nitrogen generation; (d) feed storage (unless the feed is stored hydrogen) and feed compression; and (e) on-site refrigeration, transportation and storage of ammonia. ( matériel pour ammoniac propre ) clean hydrogen  means hydrogen produced, whether solely or in conjunction with other gases, that has a carbon intensity of less than four. ( hydrogène propre ) clean hydrogen project  of a taxpayer means a project involving (a) the operation of eligible clean hydrogen property; (b) the production of clean hydrogen; and (c) if applicable, the production of clean ammonia that uses a feedstock of clean hydrogen produced by the project. ( projet pour l’hydrogène propre ) clean hydrogen project plan  means a plan for a clean hydrogen project of a taxpayer that (a) includes a front-end engineering design study (or an equivalent study as determined by the Minister of Natural Resources) for the project; (b) sets out the expected sources of electricity to be consumed in connection with the project, including sources described in any eligible power purchase agreements; (c) sets out the expected carbon intensity of the hydrogen to be produced by the project (i) determined in accordance with subsection (6), and (ii) supported by a report prepared by a qualified validation firm in respect of the project that includes attestations by the firm that (A) the assumptions in the modelling of the expected carbon intensity are reasonable, and (B) the expected carbon intensity has been determined in accordance with the Clean Hydrogen Investment Tax Credit – Carbon Intensity Modelling Guidance Document published by the Government of Canada; (d) if the project is intended to produce clean ammonia, demonstrates (i) that the project can reasonably be expected to have sufficient hydrogen production capacity to satisfy the needs of the taxpayer’s ammonia production facility, and (ii) if the taxpayer’s hydrogen production facility and its ammonia production facility are not co-located, the feasibility of transporting hydrogen between the facilities; (e) contains any information required in guidelines published by the Minister of Natural Resources, including the Clean Hydrogen Investment Tax Credit – Validation and Verification Guidance Document ; and (f) is filed by the taxpayer with the Minister of Natural Resources, in the form and manner determined by the Minister of Natural Resources. ( plan de projet pour l’hydrogène propre ) clean hydrogen 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 an eligible clean hydrogen property that is acquired by the taxpayer in the year; and (b) the total of all amounts required by subsection (12) to be added in computing the taxpayer’s clean hydrogen tax credit at the end of the year. ( crédit d’impôt pour l’hydrogène propre ) compliance period  in respect of a clean hydrogen project of a taxpayer, means the period of time beginning on the first day of the compliance period of the project and ending on the last day of the fifth operating year of the project. ( période de conformité ) dual-use electricity and heat equipment  means equipment that is part of a clean hydrogen project (excluding electricity generation equipment that supports the project indirectly by way of an electrical utility grid), that supports the production of hydrogen from eligible hydrocarbons and that (a) generates electrical energy, heat energy or a combination of electrical and heat energy, and more than 50% of either the electrical energy or heat energy that is expected to be produced over the first 20 years of the project’s operations, based on the most recent clean hydrogen project plan, is expected to support (i) a qualified CCUS project, unless the equipment uses fossil fuels and emits carbon dioxide that is not subject to capture by a CCUS process, or (ii) a qualified clean hydrogen project, unless the equipment uses fossil fuels and emits carbon dioxide that is not subject to capture by a CCUS process; or (b) is equipment that directly transmits electrical energy from equipment described in paragraph (a) to a qualified clean hydrogen project and more than 50% of the electrical energy to be transmitted by the equipment over the first 20 years of the project’s operations, based on the most recent clean hydrogen project plan, is expected to support the qualified CCUS project or qualified clean hydrogen project. ( matériel pour électricité et chaleur à double usage ) dual-use hydrogen and ammonia equipment  means equipment that is part of a clean hydrogen project and that is used for the generation of oxygen or nitrogen to be used all or substantially all in hydrogen and ammonia production for the project. ( matériel pour hydrogène et ammoniac à double usage ) eligible clean hydrogen property  means property, other than excluded property, that (a) is acquired by a qualifying taxpayer and becomes available for use in respect of a qualified clean hydrogen project of the taxpayer in Canada on or after March 28, 2023, determined without reference to subsection (5); (b) has not been used, or acquired for use or lease, by any person or partnership for any purpose whatever before it was acquired by the taxpayer; and (c) is property situated in Canada (i) that is used all or substantially all to produce hydrogen through electrolysis of water, including electrolysers, rectifiers, purification equipment, water treatment and conditioning equipment and equipment used for hydrogen compression and storage, (ii) that is used all or substantially all to produce hydrogen from eligible hydrocarbons, including pre-reformers, auto-thermal reformers, steam methane reformers, pre-heating equipment, syngas coolers, shift reactors, purification equipment, fired heaters, water treatment and conditioning equipment, equipment used in hydrogen compression and storage of hydrogen, oxygen production equipment and methanators, (iii) that is (A) clean ammonia equipment, (B) dual-use electricity and heat equipment, (C) dual-use hydrogen and ammonia equipment, or (D) project support equipment, (iv) that is physically and functionally integrated with equipment described in any of subparagraphs (i) to (iii) and that is ancillary equipment used solely to support the functioning of equipment described in any of subparagraphs (i) to (iii) within a hydrogen or ammonia production process as part of (A) an electrical system, (B) a feed supply system, (C) a fuel supply system, (D) a liquid delivery and distribution system, (E) a cooling system, (F) a process material storage and handling and distribution system, (G) a process venting system, (H) a process waste management system, or (I) a utility air or nitrogen distribution system, (v) that is equipment used for system safety and integrity, or as part of a control or monitoring system, solely to support equipment described in any of subparagraphs (i) to (iv), or (vi) that is property used solely to convert another property that would not otherwise be described in subparagraphs (i) to (v) if the conversion causes the other property to satisfy the description in any of subparagraphs (i) to (v). ( bien admissible pour l’hydrogène propre ) eligible electricity generation source  means, at any time, an electricity generation source that is (a) wind; (b) solar; (c) hydro; (d) nuclear; or (e) geothermal or tidal, if, at that time, (i) a technology-specific input carbon intensity for the generation source is available in the Fuel LCA Model, and (ii) guidance in respect of the generation source is included in the Clean Hydrogen Investment Tax Credit – Carbon Intensity Modelling Guidance Document published by the Government of Canada. ( source admissible de production d’électricité ) eligible hydrocarbon  means, at any time, (a) natural gas; (b) a substance sourced all or substantially all from raw natural gas; (c) an eligible renewable hydrocarbon; or (d) a substance that is (i) a by-product from processing one or more substances described in paragraph (a) or (b), and (ii) included in the Clean Hydrogen Investment Tax Credit – Carbon Intensity Modelling Guidance Document published by the Government of Canada at that time. ( hydrocarbure admissible ) eligible pathway  means the production of hydrogen (a) from electrolysis of water; or (b) from the reforming or partial oxidation of eligible hydrocarbons, with carbon dioxide captured using a CCUS process. ( méthode admissible ) eligible power purchase agreement  means an agreement or other arrangement in writing that (a) allows, or will allow, a taxpayer to purchase electricity from an eligible electricity generation source (including incremental nameplate capacity) that (i) first commenced electricity generation on or after both (A) November 3, 2022, and (B) the earlier of the day that is (I) 24 months before the taxpayer’s first clean hydrogen project plan is filed with the Minister of Natural Resources, and (II) 36 months before the day on which hydrogen is first produced by the relevant clean hydrogen project of the taxpayer, and (ii) is located in (A) the same province as the clean hydrogen project and is connected to the electricity grid of that province, (B) the exclusive economic zone of Canada and is directly connected to the grid of the province in which the project is located, or (C) another province that has a provincial grid that is directly connected to the grid of the province in which the project is located, if the taxpayer has arranged for the necessary interprovincial transmission; (b) grants, or will grant, the taxpayer the sole and exclusive right to the environmental attributes associated with the electricity; and (c) is entered into by the taxpayer for the primary purpose of operating the taxpayer’s clean hydrogen project during all or any portion of the first 20 years of the project’s operations. ( entente pour l’achat d’électricité admissible ) eligible renewable hydrocarbon , in respect of a taxpayer, means a substance (a) that is produced from non-fossil carbon; (b) in respect of which a CFR carbon intensity can be determined under the Clean Fuel Regulations ; (c) that is included in the Clean Hydrogen Investment Tax Credit – Carbon Intensity Modelling Guidance Document published by the Government of Canada at the time that the taxpayer files its most recent clean hydrogen project plan with the Minister of Natural Resources; (d) that is sourced from a facility that first commenced production of the substance on or after both (i) November 3, 2022, and (ii) the earlier of the day that is (A) 24 months before the taxpayer’s first clean hydrogen project plan is filed with the Minister of Natural Resources, and (B) 36 months before the day on which hydrogen is first produced by the relevant clean hydrogen project of the taxpayer; (e) that, if acquired by the taxpayer under an agreement, the agreement grants, or will grant, the taxpayer the sole and exclusive right to the environmental attributes associated with the substance; and (f) that is acquired or produced by the taxpayer for the sole purpose of operating the clean hydrogen project during all or any portion of the first 20 years of the project’s operations. ( hydrocarbure renouvelable admissible ) excluded property  means property that is  (a) included in Class 57 or 58 of Schedule II to the Income Tax Regulations ; (b) equipment used for the off-site transmission, transportation or distribution of hydrogen or ammonia; (c) equipment used to prepare hydrogen for transport, including liquefaction equipment and equipment used to compress hydrogen to levels suitable for transportation; (d) an automotive vehicle or related refuelling or charging equipment; (e) a building or other structure; (f) construction equipment, furniture or office equipment; or (g) equipment used for off-site storage. ( bien exclu ) expected carbon intensity  means the carbon intensity of hydrogen that is expected to be produced by a particular clean hydrogen project of a taxpayer, as documented in the taxpayer’s clean hydrogen project plan in respect of the project. ( intensité carbonique attendue ) first day of the compliance period  means, in respect of a clean hydrogen project of a taxpayer, (a) unless paragraph (b) or (c) applies, the particular day that is 120 days after the day on which hydrogen is first produced by the project; (b) if the taxpayer files an election in prescribed form and manner with the Minister with its return of income for the taxation year that includes the particular day referred to in paragraph (a), the day that is one year after the particular day; or (c) if the taxpayer has filed an election under paragraph (b) and files a second election in prescribed form and manner with the Minister with its return of income for the taxation year that includes the day referred to in paragraph (b), the day that is two years after the particular day referred to in paragraph (a). ( premier jour de la période de conformité ) Fuel LCA Model  means the Government of Canada’s Fuel Life Cycle Assessment Model that is published by the Minister of the Environment. ( modèle ACV des combustibles ) government assistance  has the same meaning as in subsection 127(9). ( aide gouvernementale ) ineligible use  has the same meaning as in subsection 127.44(1). ( utilisation non admissible ) input carbon intensity  in relation to a fuel, energy source or material input, means the quantity in kilograms of carbon dioxide equivalent per unit of fuel, energy source or material input that is released over the life cycle of that fuel, energy source or material input. ( intensité carbonique entrante ) non-government assistance  has the same meaning as in subsection 127(9). ( aide non gouvernementale ) non-hydrogen or ammonia 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 an eligible clean hydrogen property , determined without reference to paragraph (b) of that definition. ( utilisation autre que pour l’hydrogène ou l’ammoniac ) operating year  means each cumulative 365-day period, the first of which begins on the first day of the compliance period of a taxpayer’s clean hydrogen project, disregarding any period during which the project is not operating. ( année d’exploitation ) preliminary clean hydrogen work activity  means an activity that is preliminary to the acquisition, construction, fabrication or installation by or on behalf of a taxpayer of eligible clean hydrogen property in respect of the taxpayer’s clean hydrogen 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 eligible clean hydrogen property; (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 pour l’hydrogène propre ) project support equipment  means equipment that directly supports a qualified clean hydrogen project by (a) transmitting electrical energy from on-site electrical generation equipment directly to the project; (b) distributing electrical energy or heat energy; or (c) delivering, collecting, recovering, treating or recirculating water, or a combination of those activities. ( matériel de soutien du projet ) qualified CCUS project  has the same meaning as in subsection 127.44(1). ( projet de CUSC admissible ) qualified clean hydrogen project  means a clean hydrogen project of a taxpayer, as described in the taxpayer’s clean hydrogen project plan, where the Minister of Natural Resources has confirmed in writing that (a) the hydrogen will be produced from an eligible pathway; (b) the expected carbon intensity contained in the taxpayer’s most recent clean hydrogen project plan (i) is determined in accordance with subsection (6), and (ii) can reasonably be expected to be achieved based on the project design; and (c) if the project is intended to produce clean ammonia, the taxpayer has demonstrated (i) that the project can reasonably be expected to have sufficient hydrogen production capacity to satisfy the needs of the taxpayer’s ammonia production facility, and (ii) if the taxpayer’s hydrogen production facility and its ammonia production facility are not co-located, the feasibility of transporting hydrogen between the facilities. ( projet admissible pour l’hydrogène propre ) qualified validation firm  means, in respect of a clean hydrogen project of a taxpayer, an engineer or engineering firm that (a) is registered and in good standing with a professional association that has the authority or recognition by law of a jurisdiction in Canada to regulate the profession of engineering in (i) the jurisdiction where the project is located, or (ii) if there is no professional association in the jurisdiction described in subparagraph (i), a jurisdiction in Canada where a professional association regulates the profession of engineering; (b) has appropriate insurance coverage; (c) has expertise in modelling using the Fuel LCA Model and engineering expertise in production processes for hydrogen and, if applicable, ammonia; (d) at all times, is independent of, deals at arm’s length with and is not an employee of the taxpayer; and (e) meets the requirements described in guidelines published by the Minister of Natural Resources, including the Clean Hydrogen Investment Tax Credit – Validation and Verification Guidance Document . ( firme admissible de validation ) qualified verification firm  means, in respect of a clean hydrogen project of a taxpayer, an individual or firm that (a) is either (i) an engineer or an engineering firm that is registered and in good standing with a professional association that has the authority or recognition by law of a jurisdiction in Canada to regulate the profession of engineering in (A) the jurisdiction where the project is located, or (B) if there is no professional association in the jurisdiction described in clause (A), a jurisdiction in Canada where a professional association regulates the profession of engineering, or (ii) a verification body accredited and in good standing under the Clean Fuel Regulations ; (b) has appropriate insurance coverage; (c) has expertise in life-cycle analysis of greenhouse gas emissions; (d) at all times, is independent of, deals at arm’s length with and is not an employee of the taxpayer; (e) is not a qualified validation firm in respect of the project; and (f) meets the requirements described in guidelines published by the Minister of Natural Resources, including the Clean Hydrogen Investment Tax Credit – Validation and Verification Guidance Document . ( firme admissible de vérification ) qualifying taxpayer  means a taxable Canadian corporation. ( contribuable admissible ) specified greenhouse gas  means (a) carbon dioxide; (b) methane; (c) nitrous oxide; (d) sulphur hexafluoride; and (e) any other greenhouse gases listed in the Fuel LCA Model and included in the Clean Hydrogen Investment Tax Credit – Carbon Intensity Modelling Guidance Document published by the Government of Canada at the time that a taxpayer files its most recent clean hydrogen project plan with the Minister of Natural Resources. ( gaz à effet de serre déterminé ) specified percentage  means (a) in respect of the capital cost of an eligible clean hydrogen property (other than equipment described in paragraph (b)) that is acquired by a qualifying taxpayer for use in a clean hydrogen project, (i) if the expected carbon intensity of the hydrogen to be produced by the project is less than 0.75 and the property is acquired (A) before 2034, 40%, (B) in 2034, 20%, and (C) after 2034, 0%, (ii) if the expected carbon intensity of the hydrogen to be produced by the project is 0.75 or greater and less than two and the property is acquired (A) before 2034, 25%, (B) in 2034, 12.5%, and (C) after 2034, 0%, (iii) if the expected carbon intensity of the hydrogen to be produced by the project is two or greater and less than four and the property is acquired (A) before 2034, 15%, (B) in 2034, 7.5%, and (C) after 2034, 0%, and (iv) if the expected carbon intensity of the hydrogen to be produced by the project is four or greater, 0%; and (b) in respect of the capital cost of eligible clean hydrogen property that is clean ammonia equipment or equipment described in any of subparagraphs (c)(iv) to (vi) of the definition eligible clean hydrogen property in this subsection that is used solely in connection with clean ammonia equipment acquired by a qualifying taxpayer for use in a clean hydrogen project, (i) subject to subparagraph (ii), if the equipment is acquired (A) before 2034, 15%, (B) in 2034, 7.5%, and (C) after 2034, 0%, (ii) if the expected carbon intensity of the hydrogen to be produced by the project and used in the production of ammonia is four or greater, 0%. ( pourcentage déterminé ) Clean hydrogen 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 hydrogen tax credit for the year. Deemed deduction (3) For the purposes of this section, paragraph 12(1)(t), subsection 13(7.1), variable I of the definition undepreciated capital cost in subsection 13(21), subsection 53(2) and sections 127.44, 127.45, 127.49 and 129, 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. Time limit for application (4) 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 the prescribed form containing prescribed information described in subsection (2) in respect of the amount on or before the later of December 31, 2025 and the day that is one year after the taxpayer’s filing-due date for the year and, if the prescribed form is filed after the taxpayer’s filing-due date for the year, no payment by the taxpayer is deemed to arise under that subsection until the prescribed form containing prescribed information has been filed with the Minister. Time of acquisition (5) For the purpose of this section, eligible clean hydrogen property is deemed not to have been acquired before the property becomes available for use by the taxpayer, determined without reference to paragraphs 13(27)(c) and (28)(d). Calculation of carbon intensity (6) For the purposes of calculating the carbon intensity of hydrogen produced and to be produced by a clean hydrogen project of a taxpayer, (a) the most recent Fuel LCA Model at the time of filing by the taxpayer of the most recent related clean hydrogen project plan with the Minister of Natural Resources shall be used, unless, at the time of filing any compliance report under subsection (16), the taxpayer elects to use a subsequent version of the Fuel LCA Model in calculating the actual carbon intensity of the project; (b) in applying the Fuel LCA Model, an assessment of emissions from the production of hydrogen by the project and upstream emissions from the production of inputs to the hydrogen-production process shall be taken into account; (c) the quantity of hydrogen produced by the project is to be adjusted to take into account any hydrogen that is consumed in the production process; (d) if the taxpayer produces hydrogen from eligible hydrocarbons, any captured carbon that is subject to an ineligible use is deemed not to be captured; (e) if, in connection with the project, the taxpayer generates or purchases, or proposes to generate or purchase, electricity that is (i) generated, or to be generated, by the taxpayer from (A) an eligible electricity generation source, the contribution of the electricity to carbon intensity is to correspond with the input carbon intensity of the technology-specific electricity in the Fuel LCA Model, (B) on-site generation equipment that converts hydrogen, heat recovered from the taxpayer’s hydrogen or ammonia production equipment or eligible hydrocarbons (with carbon dioxide captured using a CCUS process) into electricity that supports the production of hydrogen from eligible hydrocarbons, the contribution of the electricity to carbon intensity is to be modelled as part of the project, (C) a generator used for startup or emergency backup operations, the contribution of the electricity to carbon intensity is to be modelled as part of the project, and (D) a generation source other than as described in any of clauses (A) to (C), the carbon intensity of the project is deemed to be greater than 4.5, (ii) purchased, or to be purchased, pursuant to an eligible power purchase agreement, (A) the contribution of the electricity to carbon intensity is to correspond with the input carbon intensity of the technology-specific electricity in the Fuel LCA Model, and (B) the contribution of the electricity to expected carbon intensity is to be calculated in proportion to the number of years for which the agreement will be in place during the first 20 years of the project’s operations, and (iii) otherwise sourced, or to be sourced, from a provincial grid, the contribution to carbon intensity of the net positive quantity of the electricity (after subtracting any electricity purchased by the taxpayer under an eligible power purchase agreement or generated by the taxpayer in respect of the project that is, in either case, transmitted to the grid by the taxpayer) is to be based on the input carbon intensity of the provincial grid in the Fuel LCA Model; (f) in calculating the quantity of electricity described in paragraph (e), if the sum of the quantities of electricity from sources described in subparagraphs (e)(i) and (ii) exceeds the total electricity consumed or to be consumed by the project, then the electricity consumed or to be consumed by the project is deemed to be generated (i) first, from the source described in subparagraph (e)(i), and (ii) second, from the source described in subparagraph (e)(ii) to the extent of any excess; (g) if the project uses, or proposes to use, eligible hydrocarbons for the purpose of producing hydrogen, (i) where the eligible hydrocarbon is an eligible renewable hydrocarbon in respect of the taxpayer, (A) the contribution of that eligible renewable hydrocarbon to carbon intensity is to be based on the most recent CFR carbon intensity that is determined under the Clean Fuel Regulations , adjusted as necessary, and (B) the contribution of that eligible renewable hydrocarbon to expected carbon intensity is to be calculated in proportion to the number of years for which that hydrocarbon will be used during the first 20 years of the project’s operations, and (ii) in any other case, the input carbon intensity of the relevant eligible hydrocarbon is to be taken into account in applying the Fuel LCA Model; (h) if the taxpayer disposes of any environmental attributes associated with any electricity described in subparagraph (e)(i) or (ii) or any eligible renewable hydrocarbon described in subparagraph (g)(i), the carbon intensity of the project is deemed to be greater than 4.5; and (i) the Clean Hydrogen Investment Tax Credit – Carbon Intensity Modelling Guidance Document published by the Government of Canada at the time of filing by the taxpayer of the most recent related clean hydrogen project plan with the Minister of Natural Resources, is to apply conclusively with respect to the calculation of carbon intensity, except as otherwise provided in this section. Changes to clean hydrogen project (7) Subsection (8) applies in respect of a qualified clean hydrogen project of a taxpayer if, before the first day of the compliance period of the project, (a) the Minister of Natural Resources determines that there has been a material change to the project design and requests that the taxpayer file a revised project plan for the project; (b) the taxpayer (i) does not file the final detailed engineering designs with the Minister of Natural Resources in accordance with paragraph (9)(d), (ii) changes the project’s eligible pathway, or (iii) reasonably expects that there will be an increase (as compared to the most recent project plan for the project) of more than 0.5 kilograms of carbon dioxide equivalent per kilogram of hydrogen to be produced by the project; (c) any eligible power purchase agreement referenced in the most recent clean hydrogen project plan of the taxpayer (i) has not been finalized and executed so as to become legally binding, or (ii) has been materially modified or terminated; or (d) any environmental attributes associated with the agreement have been disposed of by the taxpayer. Rules relating to revised project plan (8) If this subsection applies, (a) the taxpayer shall file, within 180 days, a revised clean hydrogen project plan in respect of the project with the Minister of Natural Resources, in the form and manner determined by the Minister of Natural Resources; (b) if the Minister of Natural Resources is satisfied that the project will meet the requirements in paragraphs (a) to (c) of the definition qualified clean hydrogen project , (i) the Minister of Natural Resources shall confirm, with all due dispatch, the revised plan, (ii) the taxpayer’s clean hydrogen tax credit shall be redetermined, as of the date of the filing of the revised plan, based on the expected carbon intensity set out in the revised plan, and (iii) if the taxpayer previously deducted an amount in respect of a clean hydrogen tax credit, subsection (18) applies as if the compliance period ended on that date and the average actual carbon intensity of the project was equal to the expected carbon intensity set out in the revised plan; (c) if the Minister of Natural Resources is not satisfied in accordance with paragraph (b) and does not issue a confirmation described in subparagraph (b)(i) within one year after the filing of the taxpayer’s revised plan, then, as of the expiry of that period, (i) the project is deemed not to be a qualified clean hydrogen project, (ii) the average actual carbon intensity of the project is deemed to be greater than 4.5, and (iii) subsection (18) applies as if the compliance period of the project ended on the expiry date of that period; and (d) if the taxpayer fails to file a revised clean hydrogen project plan in accordance with paragraph (a), then, as of the expiry of the 180-day period described in paragraph (a), (i) subject to subparagraph (ii), (A) the project is deemed not to be a qualified clean hydrogen project, (B) the average actual carbon intensity of the project is deemed to be greater than 4.5, and (C) subsection (18) applies as if the compliance period of the project ended on the expiry date of that period, and (ii) once the taxpayer has filed the revised clean hydrogen project plan, subparagraph (i) is deemed never to have applied. Clean hydrogen project determination and rules (9) For the purposes of this section, (a) the Minister may, in consultation with the Minister of Natural Resources, determine that one or more clean hydrogen projects is one project or multiple projects (i) at any time before the Minister of Natural Resources confirms the expected carbon intensity of the hydrogen to be produced by a clean hydrogen project, or (ii) if a taxpayer files or is required to file a revised clean hydrogen project plan in accordance with subsection (8), at any time before the Minister of Natural Resources confirms the revised plan; (b) any determination under paragraph (a) is deemed to result in the clean hydrogen project or clean hydrogen 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 taxpayer shall file a separate clean hydrogen project plan 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; (d) in respect of each clean hydrogen project, the taxpayer shall file final detailed engineering designs with the Minister of Natural Resources by the earlier of the day on which hydrogen is first produced by the project and the day that is 60 days after the final detailed engineering designs are prepared; and (e) the Minister of Natural Resources may request from the taxpayer all documentation and information necessary for the Minister of Natural Resources to fulfill a responsibility under this section and may refuse to confirm the taxpayer’s clean hydrogen project plan or revised clean hydrogen project plan if such documentation or information is not provided by the taxpayer on or before the day that is 180 days after it was requested. Capital cost of clean hydrogen property (10) For the purposes of this section, the capital cost of eligible clean hydrogen property to a taxpayer 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 (as defined in subsection 127.44(1)), a clean technology investment tax credit (as defined in subsection 127.45(1)) or a CTM investment tax credit (as defined in subsection 127.49(1)) was deducted 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); (c) be reduced by the total of all amounts, each of which can reasonably be considered to be in respect of the property and is (i) an amount of any government assistance or non-government assistance received by the taxpayer in or before the taxation year in which the property was acquired, or (ii) an amount not described in subparagraph (i) that, in the taxation year, the taxpayer is entitled to or can reasonably be expected to receive and that would be government assistance or non-government assistance if it were received by the taxpayer; (d) 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 127.48, (ii) the reference in subsection 127(11.6) to subsection 127(26) is to be read as a reference to subsection 127.48(13), and (iii) the term “qualified expenditure” is to be read as an expenditure eligible to be added to the capital cost of an eligible clean hydrogen property; (e) not include any amount in respect of an expenditure incurred for a preliminary clean hydrogen work activity; (f) if the property is dual-use electricity and heat equipment, project support equipment or equipment described in any of subparagraphs (c)(iv) to (vi) of the definition eligible clean hydrogen property in subsection (1), excluding equipment used all or substantially all to support a qualified clean hydrogen project, be equal to the proportion of the capital cost of the equipment that (i) if the equipment is described in paragraph (a) of the definition dual-use electricity and heat equipment in subsection (1), the quantity of energy expected to be produced for use in the project over the first 20 years of the project’s operations is of the total quantity 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 clean hydrogen project plan, (ii) if the equipment is described in paragraph (b) of the definition dual-use electricity and heat equipment in subsection (1) or paragraph (a) of the definition project support equipment in subsection (1), the quantity of electrical energy expected to be transmitted by the equipment for use in the project over the first 20 years of the project’s operations is of the total quantity 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 clean hydrogen project plan, (iii) if the equipment is described in paragraph (b) of the definition project support equipment in subsection (1), the quantity of electrical or heat energy expected to be distributed by the equipment (or if it is 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 the project over the first 20 years of the project’s operations is of the total quantity 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 clean hydrogen project plan, (iv) if the equipment is described in paragraph (c) of the definition project support equipment in subsection (1), the mass of water expected to be supplied to the project over the first 20 years of the project’s operations is of the total mass of water expected to be processed by the equipment in that period, based on the project’s most recent clean hydrogen project plan, and (v) if the equipment is described in any of subparagraphs (c)(iv) to (vi) of the definition eligible clean hydrogen property in subsection (1) and supports equipment described in any of subparagraphs (i) to (iv), is determined under that subparagraph; and (g) after applying paragraph (f), if the property is dual-use hydrogen and ammonia equipment, dual-use electricity and heat equipment, project support equipment or equipment described in any of subparagraphs (c)(iv) to (vi) of the definition eligible clean hydrogen property in subsection (1) and that property is used in the production of hydrogen and ammonia, be allocated between two separate capital cost amounts, with each amount determined based on the percentage of the expected use of the equipment that is attributable to hydrogen production and ammonia production, and (i) the capital cost amount that is attributable to hydrogen production is deemed to be in respect of property described in paragraph (a) of the definition specified percentage in subsection (1) and (ii) the capital cost amount that is attributable to ammonia production is deemed to be in respect of property described in paragraph (b) of the definition specified percentage in subsection (1). Repayment of assistance (11) 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 capital cost of an eligible clean hydrogen property under paragraph (10)(c) 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 hydrogen tax credit for the year. Partnerships (12) Subject to section 127.47, where, 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 clean hydrogen tax credit of the taxpayer at the end of the particular year. Unpaid amounts (13) For the purposes of this section, where any part of the capital cost of a taxpayer’s eligible clean hydrogen 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 hydrogen tax credit would otherwise be available in respect of the property, such amount is to be (a) excluded from the capital cost of the property in the year; and (b) added to the capital cost of the property at the time it is paid. Tax shelter investment (14) Subsection (2) does not apply if an eligible clean hydrogen 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. Annual information reporting requirement (15) If a clean hydrogen tax credit was deducted in any taxation year by a taxpayer in respect of a qualified clean hydrogen project, the taxpayer shall file, with its return of income for each taxation year that begins during the compliance period in respect of the project, a prescribed form containing prescribed information in respect of the operations of the project. Compliance — annual carbon intensity reporting (16) If a clean hydrogen tax credit was deducted by a taxpayer in respect of a qualified clean hydrogen project, the taxpayer shall file with the Minister and the Minister of Natural Resources, within 180 days after the end of each operating year, a compliance report in prescribed form and manner including (a) the actual carbon intensity of the hydrogen produced by the project during the year; (b) the quantity, in kilograms, of hydrogen that is produced by the project during the year; (c) any shutdown time of the project in respect of the year; (d) for the compliance report in respect of the fifth operating year, a report that verifies the actual carbon intensity of the hydrogen produced during each operating year of the compliance period, prepared by a qualified verification firm in respect of the project; and (e) any information required in guidelines published by the Minister of Natural Resources, including the Clean Hydrogen Investment Tax Credit – Validation and Verification Guidance Document . Failure to report (17) Each taxpayer that fails to file a compliance report for a project as described in subsection (16) is liable to a penalty, for each such failure, in an amount, not exceeding the total of all clean hydrogen tax credits deducted by the taxpayer in respect of the project, equal to the amount determined by the formula ((4% × A) ÷ 365) × B where A is the total of all amounts, each of which is the amount of a clean hydrogen tax credit in respect of the project deducted by the taxpayer for a taxation year that ended before the applicable date in subsection (16); and B is the number of days during which the failure continues. Recovery — change in carbon intensity (18) In the taxation year of a taxpayer in which the compliance period of the taxpayer’s qualified clean hydrogen project ends, if the average actual carbon intensity of the hydrogen produced is greater than the most recent expected carbon intensity that was used to determine a clean hydrogen tax credit in respect of the project, there shall be added to the taxpayer’s tax otherwise payable under this Part for the taxation year an amount equal to the total of all amounts, each of which is determined by the formula (A − B) × C where A is the specified percentage that was applied to the capital cost of the eligible clean hydrogen property forming part of the project in determining a clean hydrogen tax credit of the taxpayer; B is the specified percentage that would have applied to the capital cost of the property if the expected carbon intensity were equal to the average actual carbon intensity of the project; and C is the capital cost of the property on which the clean hydrogen tax credit was deducted. Minister’s determination (19) For the purpose of subsection (18), the Minister of Natural Resources shall review each of the taxpayer’s compliance reports described in subsection (16) and the Minister may, in consultation with the Minister of Natural Resources, make a determination or redetermination of the actual carbon intensity of the hydrogen produced by a taxpayer’s clean hydrogen project for any operating year during the compliance period of the project. De minimis exception (20) Subsection (18) does not apply to a taxpayer if the difference between the average actual carbon intensity of the taxpayer’s qualified clean hydrogen project and the expected carbon intensity of the project is 0.5 or less. Recapture of clean hydrogen tax credit — application (21) Subsection (22) applies in a taxation year if (a) a taxpayer acquired an eligible clean hydrogen property in the year or any of the preceding 20 calendar years; (b) the taxpayer became entitled to a clean hydrogen tax credit in respect of the capital cost, or a portion of the capital cost, of the property; and (c) in the year, the property is converted to a non-hydrogen or ammonia use, is exported from Canada or is disposed of without having been previously exported or converted to a non-hydrogen or ammonia use. Recapture of clean hydrogen tax credit (22) If this subsection applies for a taxation year in respect of an eligible clean hydrogen property, there shall be added to the taxpayer’s tax otherwise payable under this Part for the year an amount determined by the formula (A – B) × (C ÷ D) where A is the amount of the taxpayer’s clean hydrogen tax credit in respect of the property; B 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 (18) in respect of the property; C is an amount, not exceeding the amount determined for D, equal to (a) if the property is disposed of to a person or partnership who deals at arm’s length with the taxpayer, the proceeds of disposition of the property, and (b) in any other case, the fair market value of the property; and D is the capital cost of the property on which the clean hydrogen tax credit was deducted. Election — sale of clean hydrogen project (23) If at any time a qualifying taxpayer (referred to in this subsection as the “vendor”) disposes of all or substantially all of its property comprising a qualified clean hydrogen 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, on or before the day that is the earliest of the days on or before which any taxpayer making the election is required to file a return of income pursuant to section 150 for the taxation year in which the transaction occurred, to have this subsection apply, the following rules apply: (a) the purchaser is deemed to have acquired any eligible clean hydrogen property of the vendor at the times acquired 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 clean hydrogen tax credits determined under subsection (2) that could have been claimed by the vendor, before that time, in respect of the project; (c) any clean hydrogen project plans that were filed by the vendor in respect of the 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 section 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) subsection (22) does not apply to the vendor in respect of the disposition of property to the purchaser. Recapture event reporting requirement (24) If subsection (22) applies to a taxpayer or partnership for a particular year, the taxpayer or partnership, as the case may be, shall notify the Minister in prescribed form and manner on or before the taxpayer’s filing-due date for the year or the day when a return is required by section 229 of the Income Tax Regulations to be filed in respect of the fiscal period of the partnership. Recovery and recapture — partnerships (25) If subsection (12) has at any time applied to add an amount in computing the clean hydrogen tax credit of a member of a partnership, subsections (18) to (23) apply to determine amounts in respect of the partnership as if the partnership was a taxable Canadian corporation, its fiscal period were its taxation year and it had deducted all of the clean hydrogen tax credits that were previously added in computing the clean hydrogen tax credit of any member of the partnership because of the application of subsection (12) in respect of its partnership interest. Member’s share of recovery or recapture (26) Unless subsection (27) 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 (25) in respect of the partnership shall be added to the taxpayer’s tax otherwise payable under this Part for the year. Election by member (27) 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 a taxation year because of subsection (25) in respect of the partnership. Joint, several and solidary liability (28) Each member of a partnership is jointly and severally, or solidarily, liable for any portion of the amount of tax – determined because of subsection (25) 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 (26); or (b) of a taxable Canadian corporation because of subsection (27) and paid by the corporation by its filing-due date for the year. Interest on recovery tax (29) For the purpose of applying subsection 161(1) to an amount of tax payable because of subsection (18) (other than an amount payable because of subsection (8)), the balance-due day of a taxpayer is deemed to be the balance-due day of the taxation year for the related clean hydrogen tax credit under subsection (2). Credit after compliance period (30) For the purpose of applying subsection (2) in respect of a property acquired after the compliance period of a qualified clean hydrogen project of the taxpayer, the expected carbon intensity of the project is deemed to be the greater of the expected carbon intensity otherwise determined and the average actual carbon intensity for the compliance period of the project. Purpose (31) The purpose of this section is to encourage the investment of capital in the production of clean hydrogen and clean ammonia in Canada. Authority of the Minister of Natural Resources (32) For the purpose of determining whether a property is an eligible clean hydrogen property, the Clean Hydrogen Investment Tax Credit – Technical and Equipment Guidance Document published by the Department of Natural Resources is to apply conclusively with respect to engineering and scientific matters. (81) Section 127.49 of the Income Tax Act , as enacted by subsection 38 (1) of this Act, is deemed to have been repealed on January 1, 2024. (82) The Income Tax Act is amended by adding the following after section 127.48, as enacted by subsection (80): Definitions 127.49 (1) The following definitions apply in this section. CTM 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 CTM property acquired by the taxpayer in the year for a CTM use; and (b) the total of all amounts required by subsection (8) to be added in computing the taxpayer’s CTM investment tax credit at the end of the year. ( crédit d’impôt à l’investissement pour la FTP ) CTM property  means property of a taxpayer, other than excluded property, (a) situated in 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 a partnership, is (i) leased to a qualifying taxpayer or a partnership all the members of which are qualifying taxpayers, 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) described in Schedule II to the Income Tax Regulations that (i) is included in (A) paragraph (a) or (c) of Class 8, (B) paragraph (a) of Class 43, (C) Class 43.1 that would otherwise be included in any of clauses (A), (B) and (E), (D) Class 43.2 that would otherwise be included in clause (C), or (E) Class 53, (ii) is included in (A) paragraph (b) of Class 8, or would be included in paragraph (b) of Class 8 if that paragraph were read without reference to the word “solely” and if the word “building” were read as “structure”, (B) Class 43.1 that would otherwise be included in clause (A), or (C) Class 43.2 that would otherwise be included in clause (B), (iii) is included in (A) subparagraph (k)(i) of Class 10, provided that the property would otherwise be in paragraph (a) or (c) of Class 8, (B) subparagraph (k)(ii) of Class 10, (C) paragraph (b) of Class 41, or in paragraph (b) of Class 41.2, that would otherwise be included in clauses (A) or (B), (D) paragraph (b) of Class 43, (E) Class 43.1 that would otherwise be included in any of clauses (A) to (D), or (F) Class 43.2 that would otherwise be included in clause (E), (iv) is included in paragraph (d) or (j) of Class 12, (v) is included in (A) paragraph (a) or (e) of Class 10 or Class 38, but excluding any property that is designed or adapted for use on streets and highways, or (B) Class 56, or (vi) would be described in any of subparagraphs (i) to (v) if the word “mine” in Schedule II of the Income Tax Regulations were read as “mine, well or tailing pond”. ( bien de FTP ) CTM use  means the use of a property (a) all or substantially all for activities described in paragraph (a) or (c) of the definition qualified zero-emission technology manufacturing activities in section 5202 of the Income Tax Regulations ; or (b) in a qualifying mineral activity producing all or substantially all qualifying materials. ( utilisation pour la FTP ) excluded property  means any property used in the production of battery cells or modules if the production has benefitted from, or can reasonably be expected to benefit from, support under a contribution agreement with the Government of Canada referred to in section 7300 of the Income Tax Regulations . ( bien exclu ) government assistance  has the same meaning as in subsection 127(9). ( aide gouvernementale ) non-CTM use  means a use of a property other than a CTM use. ( utilisation autre que pour la FTP ) non-government assistance  has the same meaning as in subsection 127(9). ( aide non gouvernementale ) permitted element  means hydrogen, carbon, nitrogen, oxygen, phosphorus, sulfur, selenium, sodium, potassium, a halogen or a noble gas. ( élément autorisé ) qualifying material  means   (a) lithium; (b) cobalt; (c) nickel; (d) copper; (e) rare earth elements; and (f) graphite. ( matériau admissible ) qualifying mineral activity  means   (a) the extraction of resources from a mineral deposit or from a tailing pond; (b) a mineral processing activity, including crushing, grinding, milling, separation, sieving, screening, froth floatation, leaching, recrystallization, precipitation, drying, evaporation, heating, calcinating, roasting, smelting, casting of ingots, refining, purification, distillation, electrodeposition and surface roughening of electrodeposited foil, that (i) is performed at a mine site, well site, tailing pond, mill, smelter or refinery, and (ii) occurs prior to or as part of a process intended (A) to increase the purity of at least one qualifying material, or (B) to produce a material with non-trace amounts of a single qualifying material, and without non-trace amounts of any elements other than permitted elements; (c) a recycling activity that is (i) sorting, disassembly or shredding of a recyclable material, or (ii) a material processing activity substantially similar to an activity described in paragraph (b) if that paragraph were read without reference to its subparagraph (i); (d) a synthetic graphite activity that is (i) performed during or after the graphitization stage, and (ii) a material processing activity substantially similar to an activity described in paragraph (b) if that paragraph were read without reference to its subparagraph (i); or (e) spheronization of graphite or coating of spheronized graphite. ( activité minière admissible ) qualifying taxpayer  means a taxable Canadian corporation. ( contribuable admissible ) specified percentage  means in respect of a CTM property of the taxpayer that is acquired (a) before January 1, 2024, determined without reference to subsection (4), nil; (b) after December 31, 2023 and before January 1, 2032, 30%; (c) after December 31, 2031 and before January 1, 2033, 20%; (d) after December 31, 2032 and before January 1, 2034, 10%; (e) after December 31, 2033 and before January 1, 2035, 5%; and (f) after December 31, 2034, nil. ( pourcentage déterminé ) CTM 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 CTM 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 and, if the prescribed form is filed after the taxpayer’s filing-due date for the year, no payment is deemed to arise under that subsection until the prescribed form containing the prescribed information has been filed with the Minister. Time of acquisition (4) For the purpose of this section, CTM 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 this section, the capital cost of CTM property to a taxpayer 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 (as defined in subsection 127.44(1)), a clean technology investment tax credit (as defined in subsection 127.45(1)) or a clean hydrogen tax credit (as defined in subsection 127.48(1)) was deducted 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); (c) be reduced by the total of all amounts, each of which can reasonably be considered to be in respect of the property and is (i) an amount of any government assistance or non-government assistance received by the taxpayer in or before the taxation year in which the property was acquired, or (ii) an amount not described in subparagraph (i) that, in the taxation year, the taxpayer is entitled to or can reasonably be expected to receive and that would be government assistance or non-government assistance if it were received by the taxpayer; and (d) 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 127.49, (ii) the reference in subsection 127(11.6) to subsection 127(26) is to be read as a reference to subsection 127.49(9), and (iii) the term “qualified expenditure” is to be read as an expenditure eligible to be added to the capital cost of a CTM property. Deemed deduction (6) For the purpose 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) and sections 127.44, 127.45, 127.48 and 129, 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)(c) 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 CTM investment tax credit for the year. Partnerships (8) Subject to section 127.47, where, in a particular taxation year of a qualifying taxpayer that 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 qualifying taxpayer 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 CTM investment tax credit of the taxpayer at the end of the particular year. Unpaid amounts (9) For the purpose of this section, where any part of the capital cost of a taxpayer’s CTM 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 CTM 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 CTM 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 CTM property in the year or any of the preceding 10 calendar years; (b) the taxpayer became entitled to a CTM investment tax credit in respect of the capital cost, or a portion of the capital cost, of the property; and (c) in the year, the property (or another property that incorporates the property) is converted to a non-CTM use, is exported from Canada or is disposed of without having been previously exported or converted to a non-CTM 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 CTM investment tax credit in respect of the property, and (b) the amount determined by the formula A × (B ÷ C) where A is the amount of the taxpayer’s CTM investment tax credit in respect of the property, B is (i) in the case where the property is disposed of to a person or partnership who deals at arm’s length with the taxpayer, the proceeds of disposition of the property, or (ii) in the case where the property is disposed of to a person or partnership who does not deal at arm’s length with the taxpayer, is converted to a non-CTM use or is exported from Canada, the fair market value of the property, and C is the capital cost of the property on which the CTM investment tax credit was deducted. Certain non-arm’s length transfers (13) Subsections (11) and (12) do not apply to a taxpayer (in this subsection referred to as the “transferor”) that disposes of a property to a qualifying taxpayer (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 CTM property to the purchaser (but for paragraph (b) of the definition CTM property in subsection (1)) and is used by the purchaser for a CTM use. Certain non-arm’s length transfers — recapture deferred (14) If subsections (11) and (12) do not apply because of subsection (13), subsection 127(34) applies with such modifications as the circumstances require, including that the reference to subsection 127(33) be read as subsection 127.49(13). Recapture event reporting requirement (15) If subsection (12) or (13) applies to a taxpayer for a taxation 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 CTM 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 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 property (or another property that incorporates the property) is converted to a non-CTM use, is exported from Canada or is disposed of without having been previously exported or converted to a non-CTM 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 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 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 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 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. CTM investment tax credit — purpose (19) The purpose of this section is to encourage the investment of capital in Canada for a CTM use. (83) Section 127.491 of the Income Tax Act , as enacted by subsection 39 (1) of this Act, is deemed to have been repealed immediately after the expiration of March 27, 2023. (84) Paragraph 127.52(1)(h) of the Income Tax Act , as amended by subsection 41 (7) of this Act, is amended by striking out “and” at the end of subparagraph (iv), by adding “and” after subparagraph (v) and by adding the following after subparagraph (v): (vi) twice the amount deducted under subsection 110.61(2); (85) Paragraph 127.55(f) of the Income Tax Act , as enacted by subsection 44 (1) of this Act, is amended by striking out “or” at the end of subparagraph (v), by adding “or” after subparagraph (vi) and by adding the following after subparagraph (vi): (vii) an employee ownership trust. (86) Paragraph 152(1)(b) of the Income Tax Act , as enacted by subsection 56 (1) of this 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), 127.45(2), 127.48(2) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year. (87) Paragraph 152(1)(b) of the Income Tax Act , as enacted by subsection 56 (2) of this 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), 127.45(2), 127.48(2), 127.49(2) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year. (88) Paragraph 152(4)(b.10) of the Income Tax Act , as enacted by subsection 47(7) of the other Act, is renumbered as paragraph 152(4)(b.91) and that paragraph is repositioned accordingly. (89) Subsection 152(4) of the Income Tax Act is amended by adding the following after paragraph (b.93), as enacted by subsection 56 (4) of this Act: (b.94) the assessment, reassessment or additional assessment is made before the day that is 36 months after the end of the normal reassessment period for the taxpayer in respect of the year and is made in respect of a disposition, in the year, of shares of the capital stock of a corporation in respect of which the taxpayer claimed a deduction under subsection 110.61(2); (90) Subparagraph 152(4.01)(b)(x.1) of the Income Tax Act , as enacted by subsection 56 (5) of this Act, is deemed to have been repealed immediately after the expiration of March 27, 2023. (91) Subparagraph 152(4.01)(b)(x.2) of the Income Tax Act , as enacted by subsection 56 (5) of this Act, is deemed to have been repealed on January 1, 2024. (92) Paragraph 152(4.01)(b) of the Income Tax Act , as enacted by subsection 47(8) of the other Act, is amended by striking out “or” at the end of subparagraph (xi) and by replacing subparagraph (xii) with the following: (xii) the transactions or events referred to in paragraph (4)(b.91), (xiii) the amounts, transactions or events referred to in paragraph (4)(b.92), or (xiv) the transactions or events referred to in paragraph (4)(b.93); (93) Paragraph 157(3)(e) of the Income Tax Act , as enacted by subsection 58 (1) of this 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), 127.44(2), 127.45(2) or 127.48(2) to have been paid on account of the corporation’s tax payable under this Part for the year. (94) Paragraph 157(3)(e) of the Income Tax Act , as enacted by subsection 58 (2) of this 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), 127.44(2), 127.45(2), 127.48(2) or 127.49(2) to have been paid on account of the corporation’s tax payable under this Part for the year. (95) Paragraph 157(3.1)(c) of the Income Tax Act , as enacted by subsection 58 (3) of this 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), 127.44(2), 127.45(2) or 127.48(2) to have been paid on account of the corporation’s tax payable under this Part for the taxation year. (96) Paragraph 157(3.1)(c) of the Income Tax Act , as enacted by subsection 58 (4) of this 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), 127.44(2), 127.45(2), 127.48(2) or 127.49(2) to have been paid on account of the corporation’s tax payable under this Part for the taxation year. (97) Section 160 of the Income Tax Act is amended by adding the following after subsection (1.5): Joint and several, or solidary, liability — qualifying business transfers (1.6) If a trust, any purchaser corporation owned by the trust and a taxpayer have jointly elected under paragraph 110.61(1)(e) in respect of a disposition of shares of the capital stock of a corporation and paragraph 110.61(4)(a) applies, the trust, the purchaser corporation (if applicable) and the taxpayer 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 section 110.61. (98) Paragraph 163(2)(d.1) of the Income Tax Act , as enacted by subsection 59 (1) of this Act, is deemed to have been repealed immediately after the expiration of March 27, 2023. (99) Paragraph 163(2)(d.1) of the Income Tax Act , as enacted by subsection 59 (2) of this Act, is deemed to have been repealed on January 1, 2024. (100) Paragraph 163(2)(d.1) of the Income Tax Act , as enacted by subsection 52(2) of the other Act, 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), 127.45(2) or 127.48(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), 127.45(2) or 127.48(2), as the case may be, to be paid for the year by the person, (101) Paragraph 163(2)(d.1) of the Income Tax Act , as enacted by subsection (100), 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), 127.45(2), 127.48(2) or 127.49(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), 127.45(2), 127.48(2) or 127.49(2), as the case may be, to be paid for the year by the person, (102) The definition reorganization transaction in subsection 183.3(1) of the Income Tax Act is amended by adding the following after paragraph (b): (b.1) on an amalgamation (as defined in subsection 87(1)) to which subsection 87(11) applies; (103) The portion of the definition reporting-due day in subsection 211.92(1) of the Income Tax Act before paragraph (a) is replaced by the following: reporting-due day  means the later of December 31, 2025 and  (104) Subsection 220(2.2) of the Income Tax Act , as enacted by subsection 68 (1) of this 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), 127.45(3) or 127.48(4). (105) Subsection 220(2.2) of the Income Tax Act , as enacted by subsection 68 (2) of this 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), 127.45(3), 127.48(4) or 127.49(3). (106) Section 241 of the Income Tax Act is amended by adding the following after subsection (3.4): Clean economy tax credits (3.41) The Minister or the Minister of Finance may communicate or otherwise make available to the public, in any manner that the particular Minister considers appropriate, the following taxpayer information that reasonably relates to the claim or receipt of a clean economy tax credit (as defined in subsection 127.47(1)) by a corporation or trust: (a) the name, including any business name, of (i) the corporation or trust, and (ii) a partnership of which a person described in subparagraph (i) is or was a member, or is or was deemed to be a member under subsection 127.47(7), in respect of the tax credit; (b) the specific type of tax credit; and (c) the period to which the tax credit relates. (107) Paragraph 241(4)(d) of the Income Tax Act is amended by adding the following after subparagraph (i): (i.1) to any person solely for the purposes of subsection (3.41), (108) Subparagraph 241(4)(d)(vi.2) of the Income Tax Act , as enacted by subsection 74 (4) of this Act, is replaced by the following: (vi.2) to a person employed or engaged in the service of an office or agency of the Government of Canada solely for the purposes of administering or enforcing sections 127.44, 127.45, 127.47, 127.48 and 211.92 to 211.95 or the evaluation or formulation of related policies or guidelines, (109) Subparagraph 241(4)(d)(vi.2) of the Income Tax Act , as enacted by subsection (108), is replaced by the following: (vi.2) to a person employed or engaged in the service of an office or agency of the Government of Canada solely for the purposes of administering or enforcing sections 127.44 to 127.48 and 211.92 to 211.95 or the evaluation or formulation of related policies or guidelines, (110) Subparagraph 241(4)(d)(vi.2) of the Income Tax Act , as enacted by subsection (109), is replaced by the following: (vi.2) to a person employed or engaged in the service of an office or agency of the Government of Canada solely for the purposes of administering or enforcing sections 127.44 to 127.49 and 211.92 to 211.95 or the evaluation or formulation of related policies or guidelines, (111) Paragraph (b) of the definition employee ownership trust in subsection 248(1) of the Income Tax Act is amended by striking out “and” at the end of subparagraph (iii), by adding “and” at the end of subparagraph (iv) and by adding the following after subparagraph (iv): (v) is not an individual who claimed, or is related to an individual who claimed, a deduction under subsection 110.61(2) in respect of a qualifying business controlled by the trust; (112) Subparagraphs (a)(iii) and (iv) of Class 57 of Schedule II to the Income Tax Regulations are replaced by the following: (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 (A) supports the qualified CCUS project indirectly by way of an electrical utility grid, or (B) expands the capacity of existing equipment that supports the qualified CCUS project and that distributes electrical energy, heat energy or a combination of electrical and heat energy, (iv) is equipment that solely supports a qualified CCUS project and transmits electrical energy from electrical generation equipment described in subparagraph (iii) to the qualified CCUS project, or (113) Paragraph 12(1)(t) of the Income Tax Act , as enacted by subsection (2), is deemed to have come into force immediately after the expiration of March 27, 2023. (114) Paragraph 12(1)(t) of the Income Tax Act , as enacted by subsection (3), is deemed to have come into force on January 1, 2024. (115) The portion of subsection 13(7.1) of the Income Tax Act before paragraph (a), as enacted by subsection (4), is deemed to have come into force immediately after the expiration of March 27, 2023. (116) The portion of subsection 13(7.1) of the Income Tax Act before paragraph (a), as enacted by subsection (5), is deemed to have come into force on January 1, 2024. (117) Paragraph 13(7.1)(e) of the Income Tax Act , as enacted by subsection (6), is deemed to have come into force immediately after the expiration of March 27, 2023. (118) Paragraph 13(7.1)(e) of the Income Tax Act , as enacted by subsection (7), is deemed to have come into force on January 1, 2024. (119) The description of I in the definition undepreciated capital cost in subsection 13(21) of the Income Tax Act , as enacted by subsection (8), is deemed to have come into force immediately after the expiration of March 27, 2023. (120) The description of I in the definition undepreciated capital cost in subsection 13(21) of the Income Tax Act , as enacted by subsection (9), is deemed to have come into force on January 1, 2024. (121) The portion of paragraph 13(24)(a) of the Income Tax Act before subparagraph (i), as enacted by subsection (10), is deemed to have come into force immediately after the expiration of March 27, 2023. (122) The portion of paragraph 13(24)(a) of the Income Tax Act before subparagraph (i), as enacted by subsection (11), is deemed to have come into force on January 1, 2024. (123) The portion of paragraph (l) in the description of B in the definition adjusted taxable income in subsection 18.2(1) of the Income Tax Act before subparagraph (ii), as enacted by subsection (12), is deemed to have come into force immediately after the expiration of September 30, 2023. (124) The portion of paragraph (l) in the description of B in the definition adjusted taxable income in subsection 18.2(1) of the Act before subparagraph (ii) of the Income Tax Act , as enacted by subsection (13), is deemed to have come into force on January 1, 2024. (125) Subparagraph 53(1)(e)(xiii) of the Income Tax Act , as enacted by subsection (14), is deemed to have come into force immediately after the expiration of March 27, 2023. (126) Subparagraph 53(1)(e)(xiii) of the Income Tax Act , as enacted by subsection (15), is deemed to have come into force on January 1, 2024. (127) Subparagraph 53(2)(c)(vi.3) of the Income Tax Act , as amended by subsection (16), is deemed to have come into force immediately after the expiration of March 27, 2023. (128) Subparagraph 53(2)(c)(vi.4) of the Income Tax Act , as amended by subsection (17), is deemed to have come into force on January 1, 2024. (129) Subclause 66.8(1)(a)(ii)(B)(I) of the Income Tax Act , as enacted by subsection (18), is deemed to have come into force immediately after the expiration of March 27, 2023. (130) Subclause 66.8(1)(a)(ii)(B)(I) of the Income Tax Act , as enacted by subsection (19), is deemed to have come into force on January 1, 2024. (131) Paragraph 87(2)(j.6) of the Income Tax Act , as enacted by subsection (20), is deemed to have come into force immediately after the expiration of December 31, 2023. (132) Paragraph 87(2)(qq.1) of the Income Tax Act , as enacted by subsection (23), is deemed to have come into force immediately after the expiration of March 27, 2023. (133) Paragraph 87(2)(qq.1) of the Income Tax Act , as enacted by subsection (24), is deemed to have come into force on January 1, 2024. (134) Paragraph 88(1)(e.31) of the Income Tax Act , as enacted by subsection (27), is deemed to have come into force immediately after the expiration of March 27, 2023. (135) Paragraph 88(1)(e.31) of the Income Tax Act , as enacted by subsection (28), is deemed to have come into force on January 1, 2024. (136) Paragraph 88(2)(c) of the Income Tax Act , as enacted by subsection (29), is deemed to have come into force immediately after the expiration of March 27, 2023. (137) Paragraph 88(2)(c) of the Income Tax Act , as enacted by subsection (30), is deemed to have come into force on January 1, 2024. (138) Subparagraph 96(2.1)(b)(ii) of the Income Tax Act , as enacted by subsection (31), is deemed to have come into force immediately after the expiration of March 27, 2023. (139) Subparagraph 96(2.1)(b)(ii) of the Income Tax Act , as enacted by subsection (32), is deemed to have come into force on January 1, 2024. (140) The portion of subsection 96(2.2) of the Income Tax Act before paragraph (a), as enacted by subsection (33), is deemed to have come into force immediately after the expiration of March 27, 2023. (141) The portion of subsection 96(2.2) of the Income Tax Act before paragraph (a), as enacted by subsection (34), is deemed to have come into force on January 1, 2024. (142) The portion of subsection 96(2.4) of the Income Tax Act before paragraph (a), as enacted by subsection (35), is deemed to have come into force immediately after the expiration of March 27, 2023. (143) The portion of subsection 96(2.4) of the Income Tax Act before paragraph (a), as enacted by subsection (36), is deemed to have come into force on January 1, 2024. (144) Section 110.61 of the Income Tax Act , as enacted by subsection (37), is deemed to have come into force on January 1, 2024. (145) Clause 111(1)(e)(ii)(A) of the Income Tax Act , as enacted by subsection (38), is deemed to have come into force immediately after the expiration of March 27, 2023. (146) Clause 111(1)(e)(ii)(A) of the Income Tax Act , as enacted by subsection (39), is deemed to have come into force on January 1, 2024. (147) Paragraph (b) of the description of E in the definition non-capital loss in subsection 111(8) of the Income Tax Act , as enacted by subsection (40), applies in respect of taxation years of a taxpayer that begin immediately after the expiration of September 30, 2023 (in this subsection referred to as the “applicable time”). However, that paragraph, as enacted by subsection (40), also applies in respect of a taxation year of a taxpayer that begins before, and ends after, the applicable time 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) or section 18.2 or 18.21 of the Income Tax Act to the taxpayer. (148) The definition government assistance in subsection 127(9) of the Income Tax Act , as enacted by subsection (41), is deemed to have come into force immediately after the expiration of December 31, 2021. (149) The definition government assistance in subsection 127(9) of the Income Tax Act , as enacted by subsection (42), is deemed to have come into force immediately after the expiration of March 27, 2023. (150) The definition government assistance in subsection 127(9) of the Income Tax Act , as enacted by subsection (43), is deemed to have come into force on January 1, 2024. (151) The definition dedicated geological storage in subsection 127.44(1) of the Income Tax Act , as enacted by subsection (44), is deemed to have come into force immediately after the expiration of December 31, 2021. (152) The portion of the definition dual-use equipment  in subsection 127.44(1) of the Income Tax Act before paragraph (b), as enacted by subsection (45), is deemed to have come into force immediately after the expiration of December 31, 2021. (153) The portion of the definition dual-use equipment in subsection 127.44(1) of the Income Tax Act before paragraph (b), as enacted by subsection (46), is deemed to have come into force immediately after the expiration of March 27, 2023. (154) The portion of paragraph (c) of the definition dual-use equipment in subsection 127.44(1) of the Income Tax Act before subparagraph (i), as enacted by subsection (47), is deemed to have come into force immediately after the expiration of December 31, 2021. (155) The portion of the definition preliminary CCUS work activity in subsection 127.44(1) of the Income Tax Act before paragraph (a), as enacted by subsection (48), is deemed to have come into force immediately after the expiration of December 31, 2021. (156) Paragraph (d) of the definition project plan in subsection 127.44(1) of the Income Tax Act , as enacted by subsection (49), is deemed to have come into force immediately after the expiration of December 31, 2021. (157) Subparagraph (b)(iv) of the description of A in the definition qualified carbon capture expenditure in subsection 127.44(1) of the Income Tax Act , as enacted by subsection (50), is deemed to have come into force immediately after the expiration of December 31, 2021. (158) The portion of paragraph (a) of the definition specified percentage in subsection 127.44(1) of the Income Tax Act before subparagraph (i), as enacted by subsection (51), is deemed to have come into force immediately after the expiration of December 31, 2021. (159) Subsection 127.44(3) of the Income Tax Act , as enacted by subsection (52), is deemed to have come into force immediately after the expiration of December 31, 2021. (160) Subsection 127.44(3) of the Income Tax Act , as enacted by subsection (53), is deemed to have come into force immediately after the expiration of March 27, 2023. (161) Subsection 127.44(3) of the Income Tax Act , as enacted by subsection (54), is deemed to have come into force on January 1, 2024. (162) Subparagraph 127.44(8)(a)(ii) of the Income Tax Act , as enacted by subsection (55), is deemed to have come into force immediately after the expiration of December 31, 2021. (163) The portion of paragraph 127.44(9)(a) of the Income Tax Act before subparagraph (i), as enacted by subsection (56), is deemed to have come into force immediately after the expiration of December 31, 2021. (164) Subparagraph 127.44(9)(a)(ii) of the Income Tax Act , as enacted by subsection (57), is deemed to have come into force immediately after the expiration of December 31, 2021. (165) Clause 127.44(9)(b)(ii)(C) of the Income Tax Act , as enacted by subsection (58), is deemed to have come into force immediately after the expiration of March 27, 2023. (166) Clause 127.44(9)(b)(ii)(C) of the Income Tax Act , as enacted by subsection (59), is deemed to have come into force on January 1, 2024. (167) Paragraphs 127.44(9)(h) and (i) of the Income Tax Act , as enacted by subsection (60), are deemed to have come into force on January 1, 2022. (168) Subsection 127.44(14.1) of the Income Tax Act , as enacted by subsection (61), is deemed to have come into force on January 1, 2022. (169) Subsection 127.44(17) of the Income Tax Act , as enacted by subsection (62), is deemed to have come into force immediately after the expiration of December 31, 2021. (170) Subsection 127.45(3) of the Income Tax Act , as enacted by subsection (63), is deemed to have come into force immediately after the expiration of March 27, 2023. (171) The portion of subsection 127.45(5) of the Income Tax Act before paragraph (a), as enacted by subsection (64), is deemed to have come into force immediately after the expiration of March 27, 2023. (172) Subparagraph 127.45(5)(a)(ii) of the Income Tax Act , as enacted by subsection (65), is deemed to have come into force immediately after the expiration of March 27, 2023. (173) Subparagraph 127.45(5)(a)(ii) of the Income Tax Act , as enacted by subsection (66), is deemed to have come into force on January 1, 2024. (174) Paragraphs 127.45(5)(b) and (b.1) of the Income Tax Act , as enacted by subsection (67), are deemed to have come into force immediately after the expiration of March 27, 2023. (175) Subsection 127.45(6) of the Income Tax Act , as enacted by subsection (68), is deemed to have come into force immediately after the expiration of March 27, 2023. (176) Subsection 127.45(6) of the Income Tax Act , as enacted by subsection (69), is deemed to have come into force on January 1, 2024. (177) The definitions designated work site , regular tax credit rate and specified tax credit in subsection 127.46(1) of the Income Tax Act , as enacted by subsection (70), apply in respect of specified property prepared or installed on or after the time that is immediately after the expiration of November 27, 2023. (178) Subsection 127.46(2) of the Income Tax Act , as enacted by subsection (71), applies in respect of specified property prepared or installed on or after the time that is immediately after the expiration of November 27, 2023. (179) Paragraph (c) of the definition clean economy allocation provision in subsection 127.47(1) of the Income Tax Act , as enacted by subsection (72), is deemed to have come into force immediately after the expiration of March 27, 2023. (180) Paragraph (d) of the definition clean economy allocation provision in subsection 127.47(1) of the Income Tax Act , as enacted by subsection (73), is deemed to have come into force on January 1, 2024. (181) Paragraph (c) of the definition clean economy expenditure in subsection 127.47(1) of the Income Tax Act , as enacted by subsection (74), is deemed to have come into force immediately after the expiration of March 27, 2023. (182) Paragraph (d) of the definition clean economy expenditure in subsection 127.47(1) of the Income Tax Act , as enacted by subsection (75), is deemed to have come into force on January 1, 2024. (183) The definition clean economy provision in subsection 127.47(1) of the Income Tax Act , as enacted by subsection (76), is deemed to have come into force immediately after the expiration of March 27, 2023, except that (a) before November 28, 2023, the definition clean economy provision in subsection 127.47(1) of the Income Tax Act , as enacted by subsection (76), is to be read as follows: clean economy provision  means (a) this section; (b) section 127.44 and Part XII.7; (c) section 127.45; or (d) section 127.48. ( disposition pour l’économie propre ) (b) for the period that begins on November 28, 2023 and ends on December 31, 2023, the definition clean economy provision in subsection 127.47(1) of the Income Tax Act , as enacted by subsection (76), is to be read as follows: clean economy provision  means (a) this section; (b) section 127.44 and Part XII.7; (c) section 127.45; (d) section 127.46; or (e) section 127.48. ( disposition pour l’économie propre ) (184) Paragraph (c) of the definition clean economy tax credit in subsection 127.47(1) of the Income Tax Act , as enacted by subsection (77), is deemed to have come into force immediately after the expiration of March 27, 2023. (185) Paragraph (d) of the definition clean economy tax credit in subsection 127.47(1) of the Income Tax Act , as enacted by subsection (78), is deemed to have come into force on January 1, 2024. (186) Section 127.48 of the Income Tax Act , as enacted by subsection (80), is deemed to have come into force immediately after the expiration of March 27, 2023, except that before January 1, 2024, subsection 127.48(3) of the Income Tax Act , as enacted by subsection (80), is to be read without reference to section 127.49 and subparagraph 127.48(10)(a)(ii) of the Income Tax Act , as enacted by subsection (80), is to be read as follows: (ii) in respect of which a CCUS tax credit (as defined in subsection 127.44(1)) or a clean technology investment tax credit (as defined in subsection 127.45(1)) was deducted by any person, or (187) Section 127.49 of the Income Tax Act , as enacted by subsection (82), is deemed to have come into force on January 1, 2024. (188) Subparagraph 127.52(1)(h)(vi) of the Income Tax Act , as enacted by subsection (84), is deemed to have come into force immediately after the expiration of December 31, 2023. (189) Subparagraph 127.55(f)(vii) of the Income Tax Act , as enacted by subsection (85), applies to taxation years that begin after December 31, 2023. (190) Paragraph 152(1)(b) of the Income Tax Act , as enacted by subsection (86), is deemed to have come into force immediately after the expiration of March 27, 2023. (191) Paragraph 152(1)(b) of the Income Tax Act , as enacted by subsection (87), is deemed to have come into force on January 1, 2024. (192) Paragraph 152(4)‍(b.91)‍ of the Income Tax Act , as renumbered by subsection (88), comes into force or is deemed to have come into force immediately after the expiration of the day immediately before the day on which the other Act receives royal assent. (193) Paragraph 152(4)(b.94) of the Income Tax Act , as enacted by subsection (89), is deemed to have come into force on January 1, 2024. (194) Subparagraph 152(4.‍01)‍(b)‍(xii) of the Income Tax Act , as enacted by subsection (92), comes into force or is deemed to have come into force immediately after the expiration of the day immediately before the day on which the other Act receives royal assent. (195) Subparagraph 152(4.‍01)‍(b)‍(xiii) of the Income Tax Act , as enacted by subsection (92), is deemed to have come into force immediately after the expiration of March 27, 2023. (196) Subparagraph 152(4.‍01)‍(b)‍(xiv) of the Income Tax Act , as enacted by subsection (92), is deemed to have come into force on January 1, 2024. (197) Paragraph 157(3)(e) of the Income Tax Act , as enacted by subsection (93), is deemed to have come into force immediately after the expiration of March 27, 2023. (198) Paragraph 157(3)(e) of the Income Tax Act , as enacted by subsection (94), is deemed to have come into force on January 1, 2024. (199) Paragraph 157(3.1)(c) of the Income Tax Act , as enacted by subsection (95), is deemed to have come into force immediately after the expiration of March 27, 2023. (200) Paragraph 157(3.1)(c) of the Income Tax Act , as enacted by subsection (96), is deemed to have come into force on January 1, 2024. (201) Subsection 160(1.6) of the Income Tax Act , as enacted by subsection (97), is deemed to have come into force on January 1, 2024. (202) Paragraph 163(2)(d.1) of the Income Tax Act , as enacted by subsection (100), is deemed to have come into force immediately after the expiration of March 27, 2023. (203) Paragraph 163(2)(d.1) of the Income Tax Act , as enacted by subsection (101), is deemed to have come into force on January 1, 2024. (204) Paragraph (b.1) of definition reorganization transaction in subsection 183.3(1) of the Income Tax Act , as enacted by subsection (102), is deemed to have come into force on January 1, 2024. (205) The portion of the definition reporting-due day in subsection 211.92(1) of the Income Tax Act before paragraph (a), as enacted by subsection (103), is deemed to have come into force immediately after the expiration of December 31, 2021. (206) Subsection 220(2.2) of the Income Tax Act , as enacted by subsection (104), is deemed to have come into force immediately after the expiration of March 27, 2023. (207) Subsection 220(2.2) of the Income Tax Act , as enacted by subsection (105), is deemed to have come into force on January 1, 2024. (208) Subparagraph 241(4)(d)(vi.2) of the Income Tax Act , as enacted by subsection (108), is deemed to have come into force on March 28, 2023. (209) Subparagraph 241(4)(d)(vi.2) of the Income Tax Act , as enacted by subsection (109), is deemed to have come into force on November 28, 2023. (210) Subparagraph 241(4)(d)(vi.2) of the Income Tax Act , as enacted by subsection (110), is deemed to have come into force on January 1, 2024. (211) Subparagraph (b)(v) of the definition employee ownership trust in subsection 248(1) of the Income Tax Act , as enacted by subsection (111) is deemed to have come into force immediately after the expiration of December 31, 2023. (212) Subparagraphs (a)(iii) and (iv) of Class 57 of Schedule II to the Income Tax Regulations , as enacted by subsection (112), are deemed to have come into force immediately after the expiration of December 31, 2021. PART 2 Global Minimum Tax Act Enactment of Act Enactment 81 (1) The Global Minimum Tax Act is enacted as follows: An Act respecting a global minimum tax Short Title Short title 1 This Act may be cited as the Global Minimum Tax Act . PART 1 Interpretation and Application Interpretation Definitions 2 (1) The following definitions apply in this Act. acceptable financial accounting standard  means (a) Canadian generally accepted accounting principles (GAAP); (b) IFRS; or (c) the generally accepted accounting principles of (i) Australia, (ii) Brazil, (iii) European Economic Area member states, (iv) European Union member states, (v) Hong Kong (Special Administrative Region of the People’s Republic of China), (vi) Japan, (vii) Mexico, (viii) New Zealand, (ix) People’s Republic of China, (x) Republic of India, (xi) Republic of Korea, (xii) Singapore, (xiii) Switzerland, (xiv) United Kingdom, or (xv) United States. ( norme de comptabilité financière admissible ) adjusted covered taxes , of a constituent entity of an MNE group for a fiscal year, has the same meaning as in subsection 22 (1). ( impôts concernés ajustés ) adjustment year  means a fiscal year in respect of which an adjustment is made to the GloBE income or loss or adjusted covered taxes, for the fiscal year, of a constituent entity of an MNE group or the jurisdictional adjusted covered taxes of an MNE group for the fiscal year because of the application of an ETR adjustment provision. ( année d’ajustement ) aggregate asset gain , in respect of an election under subsection 18 (23), means the net gain in a fiscal year from the disposition of local tangible assets by all of the constituent entities of an MNE group that are located in a particular jurisdiction, excluding any gain or loss on a transfer of assets between group entities. ( profit cumulé sur cession d’actifs ) aggregate asset loss , in respect of an election under subsection 18 (23), means the net loss in a fiscal year from the disposition of local tangible assets by all of the constituent entities of an MNE group that are located in a particular jurisdiction, excluding any gain or loss on a transfer of assets between group entities. ( perte cumulée sur cession d’actifs ) allocable share  has the same meaning as in subsection 15 (2). ( part à répartir ) allocated adjustment top-up amount  has the same meaning as in subsection 30 (5). ( montant complémentaire d’ajustement attribué ) ancillary international shipping activity  has the same meaning as in subsection 19 (11). ( activité de transport maritime international accessoire ) ancillary international shipping costs  has the same meaning as in subsection 19 (10). ( coûts relatifs au transport maritime international accessoires ) ancillary international shipping income  has the same meaning as in subsection 19 (8). ( revenu de transport maritime international accessoire ) ancillary international shipping revenue  has the same meaning as in subsection 19 (9). ( recettes de transport maritime international accessoire ) authorized financial accounting standard , in respect of an entity, means a set of generally acceptable accounting principles permitted by the body responsible for prescribing, establishing or accepting accounting standards for financial reporting purposes in the jurisdiction where the entity is located. ( norme de comptabilité financière agréée ) blended controlled foreign company tax regime , of a particular jurisdiction, means a controlled foreign company tax regime under which (a) the tax liability of an owner located in the particular jurisdiction is determined by reference to an aggregate of the income, losses and creditable taxes of other entities, located in one or more other jurisdictions, in which the owner holds an ownership interest; (b) the lowest rate that, if it were the corporate tax rate applicable in the one or more jurisdictions in which the other entities are located, would result in the tax charge in those jurisdictions being sufficient to prevent a tax charge on the owner under the controlled foreign company tax regime in respect of the other entities for a fiscal year, is less than the minimum rate; and (c) income of entities located in the particular jurisdiction is not taken into account. ( régime fiscal intégré des sociétés étrangères contrôlées ) consolidated financial statements , of an entity, means (a) if the entity is not the ultimate parent entity of a group described in paragraph 10 (2)(b), the financial statements of the entity prepared in accordance with an acceptable financial accounting standard, in which the assets, liabilities, income, expenses and cash flows of that entity and the entities in which it has a controlling interest are presented as those of a single economic unit; (b) if the entity is the ultimate parent entity of a group described in paragraph 10 (2)(b), the financial statements of the entity that are prepared in accordance with an acceptable financial accounting standard; (c) if the entity has financial statements that would be described in paragraph (a) or (b) except that they are not prepared in accordance with an acceptable financial accounting standard, those financial statements, adjusted to prevent any material competitive distortions; and (d) if the entity does not prepare financial statements described in any of paragraphs (a) to (c), the financial statements — in which the assets, liabilities, income, expenses and cash flows of that entity and other entities are presented as those of a single economic unit — that would have been prepared in accordance with an authorized financial accounting standard that is (i) an acceptable financial accounting standard, or (ii) a financial accounting standard that is adjusted to prevent any material competitive distortions. ( états financiers consolidés ) constituent entity  has the same meaning as in subsection 11 (1). ( entité constitutive ) constituent entity-owner  means a constituent entity that directly or indirectly holds an ownership interest in another constituent entity of the same MNE group. ( entité détentrice de titres d’une entité constitutive ) controlled foreign company tax regime , of a particular jurisdiction, means a set of tax rules (other than an IIR) under which an entity (referred to in this definition as the “owner”) — that is located in the particular jurisdiction and that holds an ownership interest in another entity (referred to in this definition as the “controlled foreign company”) that is located in another jurisdiction — is subject to current taxation on its share of all or part of the income earned by the controlled foreign company, irrespective of whether that income is distributed on a current basis to the owner. ( régime fiscal des sociétés étrangères contrôlées ) controlling interest  means (a) an ownership interest in an entity such that the interest holder (i) is required to consolidate the assets, liabilities, income, expenses and cash flows of the entity on a line-by-line basis in accordance with an acceptable financial accounting standard, or (ii) would have been required to consolidate the assets, liabilities, income, expenses and cash flows of the entity on a line-by-line basis if the interest holder had prepared consolidated financial statements; or (b) the controlling interest that a main entity is deemed to hold in a permanent establishment under paragraph (2)(b). ( participation conférant le contrôle ) cooperative  means an entity that  (a) collectively markets or acquires goods or services on behalf of its members; and (b) is subject to a tax regime in the jurisdiction in which it is located that is designed to ensure the tax neutrality of the cooperative in respect of the property or services of its members that are sold through the cooperative and property or services that are acquired by members through the cooperative. ( coopérative ) core international shipping activity  has the same meaning as in subsection 19 (6). ( activité de transport maritime international principale ) core international shipping costs  has the same meaning as in subsection 19 (5). ( coûts relatifs au transport maritime international principal ) core international shipping income  has the same meaning as in subsection 19 (3). ( revenu de transport maritime international principal ) core international shipping revenue  has the same meaning as in subsection 19 (4). ( recettes de transport maritime international principal ) corporation  includes an incorporated company, arrangement, association, organization or body. ( société ) covered taxes  has the same meaning as in subsection 23 (1). ( impôts concernés ) deductible dividend , in respect of a constituent entity that is subject to a deductible dividend regime, means (a) a distribution of profits, by the constituent entity to the holder of an ownership interest in the constituent entity, that is deductible from income for tax purposes of the constituent entity under the laws of the jurisdiction in which it is located; or (b) a patronage dividend distributed to a member of a cooperative. ( dividende déductible ) deductible dividend regime  means a tax regime that (a) is designed to yield a single level of taxation, on the owners of an entity, through a deduction from the income of the entity for distributions of profits to the owners (which, for this purpose, are considered to include patronage dividends); or (b) is applicable to cooperatives and exempts the cooperative from taxation. ( régime des dividendes déductibles ) deemed distribution tax  has the same meaning as in subsection 37 (2). ( impôt sur les distributions présumées ) deemed distribution tax recapture account  means an account established and maintained in accordance with subsection 37 (1). ( compte de récupération de l’impôt sur les distributions présumées ) departing constituent entity , of an MNE group, means an entity that is a standard constituent entity of the MNE group located in a jurisdiction in a fiscal year in respect of which an election is made under subsection 37 (1) and that has subsequently (a) left the MNE group; or (b) transferred substantially all of its assets to a recipient that is not, at the time of the transfer, a standard constituent entity of the MNE group located in the jurisdiction. ( entité constitutive sortante ) disallowed accrual , of a constituent entity, means any movement in deferred tax expense recorded in the constituent entity’s financial accounts that relates to (a) an uncertain tax position; or (b) a distribution from a group entity in respect of the constituent entity. ( accumulation non admise ) disposition recapture ratio  has the same meaning as in subsection 37 (6). ( ratio de récupération de disposition ) disqualified refundable imputation tax  means an amount of tax paid or accrued by a constituent entity (other than an amount of tax paid or accrued that is a qualified imputation tax) that is (a) refundable to the beneficial owner of a dividend or similar distribution by the constituent entity; (b) creditable against a tax liability (other than a tax liability in respect of the distribution) of the beneficial owner; or (c) refundable to, or creditable against a tax liability of, the constituent entity, in respect of the distribution. ( impôt d’imputation remboursable non admissible ) domestic top-up amount  has the same meaning as in subsection 52 (1). ( montant complémentaire national ) dual-listed arrangement  means an arrangement entered into by the ultimate parent entities of two or more groups, under which (a) all or substantially all the businesses of the groups are combined by contract alone; (b) pursuant to contractual arrangements, the ultimate parent entities each make distributions (including dividends and distributions on a liquidation, if relevant) to their respective owners on the basis of a fixed ratio; (c) the activities of the groups are managed as those of a single economic unit; (d) the groups retain the separate legal identity they had before the arrangement was entered into; (e) ownership interests of at least one of the ultimate parent entities are quoted, traded or transferred independently on a securities market that is not the same as the securities market on which the ownership interests of another of the ultimate parent entities are quoted, traded or transferred independently; and (f) financial statements are prepared by one or more of the ultimate parent entities in which the assets, liabilities, income, expenses and cash flows of the groups’ entities are presented together as those of a single economic unit and those financial statements (i) would be consolidated financial statements if the groups’ entities were included in a single group and the ultimate parent entity that prepared the financial statements were the ultimate parent entity of that group, and (ii) are required by an applicable regulatory regime of a jurisdiction to be externally audited. ( accord de double cotation ) effective tax rate  has the same meaning as in subsection 29 (1). ( taux effectif d’imposition ) eligible distribution tax system , of a jurisdiction, means a corporate income tax system that is applicable in the jurisdiction that (a) generally imposes tax on the profits, or certain non-business expenses, of a corporation only when the corporation (i) distributes those profits to its shareholders, (ii) is deemed to distribute those profits to its shareholders, or (iii) incurs those expenses; (b) imposes tax at a rate greater than or equal to the minimum rate; and (c) was in force on or before July 1, 2021. ( régime admissible d’impôt sur les distributions ) eligible employee  has the same meaning as in subsection 32 (8). ( employé admissible ) eligible payroll costs  has the same meaning as in subsection 32 (2). ( frais de personnel admissibles ) eligible tangible asset  has the same meaning as in subsection 32 (14). ( actif corporel admissible ) eligible tangible asset amount  has the same meaning as in subsection 32 (9). ( montant de l’actif corporel admissible ) entity  means a corporation, a partnership, a trust or any other arrangement, association, organization or body whether registered or unregistered for which separate financial accounts are prepared, but does not include a central, state or local government or its administration or agencies that carries out government functions. ( entité ) ETR adjustment provision  means paragraph 18 (23)(c), subsection 25 (6), paragraph 27 (1)(b), subsection 27 (4) or paragraph 37 (4)(b) or (5)(b). ( disposition d’ajustement du TEI ) excess negative tax expense  has the same meaning as in subsection 29 (4). ( charge d’impôt négative excédentaire ) excess negative tax expense top-up amount  has the same meaning as in subsection 31 (2). ( montant complémentaire de la charge d’impôt négative excédentaire ) excess profit  has the same meaning as in subsection 30 (4). ( bénéfice excédentaire ) excluded costs  has the same meaning as in subsection 32 (3). ( coûts exclus ) excluded dividends  means dividends or other distributions received or accrued by a constituent entity in respect of an ownership interest in an entity, other than (a) a dividend or other distribution received or accrued in respect of (i) an interest that is a short-term portfolio holding of the constituent entity on the earlier of (A) the date of the distribution, and (B) the date on which the constituent entity becomes entitled to the distribution, or (ii) an ownership interest in an investment entity that is subject to an election under subsection 42 (2); or (b) a dividend or other distribution received or accrued (i) to the extent that it can reasonably be considered to be interest or another amount in respect of a debt component of a financial instrument, or (ii) if it is (A) made by another group entity, and (B) treated as an expense for the purposes of determining the financial accounting income of the other group entity. ( dividendes exclus ) excluded entity  has the same meaning as in subsection 13 (1). ( entité exclue ) excluded equity gain or loss , of a constituent entity for a fiscal year, means the gain, profit or loss included in the financial accounting income of the constituent entity for the fiscal year arising from (a) gains and losses from changes in the fair value of an ownership interest, or from the impairment of an ownership interest, except for an interest that is a portfolio holding at the end of the fiscal year; (b) profit or loss in respect of an ownership interest included under the equity method of accounting; or (c) gains and losses from a disposition of an ownership interest, except for a disposition of an interest that is a portfolio holding immediately before the disposition. ( profit ou perte sur capitaux propres exclu ) excluded taxes  has the same meaning as in subsection 23 (2). ( impôts exclus ) filing constituent entity  means (a) in respect of a qualifying MNE group for a fiscal year, a constituent entity of the MNE group that is (i) located in Canada and required to file a GIR with the Minister, in respect of the MNE group for the fiscal year, in accordance with subsection 60 (1) or 60 (2), (ii) a designated local entity (as appointed under paragraph 60 (3)(a)) for the fiscal year, or (iii) a qualifying foreign filing entity , as defined in subsection 55 (1), for the fiscal year; and (b) in respect of an investment subgroup, joint venture group, minority-owned subgroup or minority-owned investment subgroup that is included in a qualifying MNE group for a fiscal year, the constituent entity that files the GIR in respect of the MNE group for the fiscal year. ( entité constitutive déclarante ) financial accounting income  has the same meaning as in subsection 17 (1). ( résultat net comptable ) financial accounting revenue  has the same meaning as in subsection 33 (3). ( chiffre d’affaires comptable ) fiscal year , in respect of an MNE group, means (a) if paragraph (d) of the definition consolidated financial statements in this subsection applies in respect of the ultimate parent entity, the calendar year; and (b) in any other case, an accounting period for which the ultimate parent entity of an MNE group prepares its consolidated financial statements. ( année financière ) fiscally transparent , in respect of an entity, means that under the laws of a jurisdiction, the income, expenditure, profit or loss of the entity is treated as if it were derived or incurred by the owner of the entity in proportion to the owner’s interest in the entity. ( fiscalement transparent ) five-year election  means an election, in respect of a particular fiscal year, to which the following rules apply: (a) the election applies to the particular fiscal year and, unless the election is revoked, each subsequent fiscal year; (b) the election cannot be revoked before the fifth fiscal year following the particular fiscal year; (c) if the election is revoked, no such election can subsequently be made until the fifth fiscal year following the revocation year; and (d) the election or any revocation of the election, as the case may be, must be made in the GIR for the first fiscal year in respect of which the election or revocation, as the case may be, is to be effective. ( choix pour cinq ans ) flow-through entity  means an entity to the extent it (a) is fiscally transparent under the laws of the jurisdiction where it was created; and (b) is not subject to a covered tax on its income or profit in another jurisdiction as a result of being tax resident in that jurisdiction. ( entité intermédiaire ) flow-through tax benefits  has the same meaning as in subsection 28 (1). ( avantages fiscaux intermédiaires ) general government  means the central administration, agencies whose operations are under its effective control, state and local governments and their respective administrations. ( administration publique ) GIR  means an information return that contains the information, and is disseminated, in accordance with the Tax Challenges Arising from the Digitalisation of the Economy — GloBE Information Return (Pillar Two) published by the OECD on July 13, 2023, as amended from time to time, and that is (a) if required to be filed with the Minister by a constituent entity located in Canada under subsection 60 (1) or 60 (2) or subparagraph 60 (3)(b)(i), the information return in prescribed form; and (b) in any other case, a substantially similar information return that is required to be filed in a jurisdiction other than Canada. ( DRG ) GloBE Commentary  means the commentary entitled Tax Challenges Arising from the Digitalisation of the Economy — Commentary to the Global Anti-Base Erosion Model Rules (Pillar Two) , published by the OECD on March 14, 2022, as amended from time to time. ( commentaires GloBE ) GloBE income , of a constituent entity for a fiscal year, means the positive amount, if any, of the constituent entity’s GloBE income or loss for the fiscal year. ( revenu GloBE ) GloBE income or loss  has the meaning assigned in section 16 . ( résultat net GloBE ) GloBE loss , of a constituent entity for a fiscal year, means the absolute value of the negative amount, if any, of the constituent entity’s GloBE income or loss for the fiscal year. ( perte GloBE ) GloBE Model Rules  means the model rules set out in the document entitled Tax Challenges Arising from the Digitalisation of the Economy — Global Anti-Base Erosion Model Rules (Pillar Two) published by the OECD on December 20, 2021. ( règles GloBE ) GloBE reorganization  means a transformation or transfer of assets and liabilities such as in a merger, demerger, liquidation or similar transaction, if (a) it is the case that (i) if no consideration is provided for the transfer, the issuance of an equity interest as consideration for the transfer would have no economic significance because the transaction does not result in a change in the beneficial ownership of an entity, and (ii) in any other case, the consideration for the transfer consists, in whole or in significant part, of (A) if the transaction is a liquidation, the cancellation of equity interests of the entity that is the subject of the liquidation, and (B) in any other case, equity interests issued by the transferee or an entity that is connected with the transferee; (b) the transferor’s gain or loss on the transfer is not subject, in whole or in part, to an income or profits tax in any jurisdiction; and (c) for the purpose of determining the transferee’s income or profits that are subject to an income or profits tax of the jurisdiction in which it is located, the transferee is required under the laws of that jurisdiction to use the transferor’s tax basis in respect of the transferred assets, adjusted to reflect any non-qualifying gain or loss in respect of the transfer. ( réorganisation GloBE ) GloBE transition year , of an MNE group in respect of a jurisdiction, means the first fiscal year in which (a) a constituent entity of, or joint venture entity in respect of, the MNE group that is located in the jurisdiction is subject to a qualified IIR or qualified UTPR; and (b) subsection 33 (1) or 47 (2), section 45 or an equivalent provision under another qualified IIR or qualified UTPR does not apply for the jurisdiction. ( année de transition GloBE ) governmental entity  means an entity, if (a) it is part of or wholly owned by a government (including any political subdivision or local authority of the government); (b) its principal purpose is (i) to fulfill a government function, or (ii) to manage or invest the government’s assets through the making and holding of investments, asset management and related investment activities for the government’s assets; (c) it does not carry on a trade or business; (d) it is accountable to the government on its overall performance and provides annual information reporting to the government; (e) its assets vest in the government upon dissolution; and (f) if it distributes net earnings, the net earnings are distributed solely to the government with no portion of its net earnings inuring to the benefit of any private person. ( entité gouvernementale ) group  has the same meaning as in subsection 10 (2). ( groupe ) group entity , in respect of another entity or a group, means an entity that is a member of the same group. ( entité du groupe ) high-tax counterparty  means a constituent entity of an MNE group that is located in a jurisdiction that (a) is not a low-tax jurisdiction; or (b) would not be a low-tax jurisdiction if the effective tax rate of the MNE group for the jurisdiction were determined without regard to any income or expense recorded by an entity in respect of an intragroup financing arrangement. ( contrepartie à imposition élevée ) hybrid entity , in relation to an owner, means an entity that is (a) not fiscally transparent in the jurisdiction where it is located; and (b) fiscally transparent in the jurisdiction where the owner is located. ( entité hybride ) IFRS  means International Financial Reporting Standards. ( IFRS ) IIR  means a law of a jurisdiction that may reasonably be considered to have been enacted with the intention of implementing, in whole or in part, Articles 2.1 to 2.3 of the GloBE Model Rules. ( RDIR ) included revaluation method gain or loss , of a constituent entity for a fiscal year, means the net gain or loss, before covered taxes, for the fiscal year in respect of all property, plant and equipment that arises under an accounting method or practice that (a) periodically adjusts the carrying value of such property, plant and equipment to its fair value; (b) records the changes in value in other comprehensive income; and (c) does not subsequently report the gains or losses recorded in other comprehensive income through profit and loss. ( profit ou perte inclus au titre de la méthode de réévaluation ) inclusion ratio  has the same meaning as in subsection 15 (3). ( ratio d’inclusion ) Inclusive Framework  means the jurisdictions of the OECD and Group of 20 (G20) Inclusive Framework on Base Erosion and Profit Shifting. ( Cadre inclusif ) insurance investment entity  means a particular entity, other than an investment fund or real estate investment vehicle, (a) that would be (i) an investment fund if the definition investment fund in this subsection were read without reference to subparagraph (a)(i) and paragraphs (c) and (d) of that definition, or (ii) a real estate investment vehicle if the definition real estate investment vehicle in this subsection were read without reference to subparagraph (b)(ii) of that definition; (b) that is primarily designed or established to generate investment income or gains to offset, or protect against an event or outcome that gives rise to, liabilities or losses associated with insurance or annuity contracts; and (c) in which each ownership interest is held by one or more entities each of which (i) is a group entity in respect of the particular entity, and (ii) is subject to a regulatory regime, in the jurisdiction in which it is established or managed, that is specific to entities engaged in the business of negotiating and entering into contracts of insurance or annuity or in activities ancillary to that business. ( entité d’investissement d’assurance ) intermediate parent entity  means a constituent entity of an MNE group (other than an ultimate parent entity, partially-owned parent entity, permanent establishment, investment entity or insurance investment entity) that holds, directly or indirectly, an ownership interest in another constituent entity of the MNE group. ( entité mère intermédiaire ) international organization  means any intergovernmental or supranational organization, or an entity that acts for, is part of or is wholly owned by that organization, if (a) the organization is comprised primarily of governments; (b) it has in effect a headquarters agreement or substantially similar agreement, such as arrangements for privileges or immunities in respect of its offices or establishments, with the jurisdiction in which it is established; and (c) law or its governing documents prevent its income inuring to the benefit of private persons. ( organisation internationale ) international shipping  means the transportation of passengers or cargo by ship in international traffic. ( transport maritime international ) international traffic  means any transport by ship, except when the ship is operated solely between places within a single jurisdiction. ( trafic international ) intragroup financing arrangement  means any arrangement between two or more group entities of an MNE group under which a high-tax counterparty directly or indirectly provides credit to or otherwise makes an investment in a low-tax entity. ( accord de financement intragroupe ) investment entity , for a fiscal year, means (a) an entity that is an investment fund for all or substantially all of the fiscal year; (b) an entity that is a real estate investment vehicle for all or substantially all of the fiscal year; (c) a particular entity, if (i) for all or substantially all of the fiscal year ownership interests in the particular entity having a fair market value equal to at least 95% of the fair market value of all ownership interests in the particular entity are held directly, or indirectly through one or more other entities that are investment funds or real estate investment vehicles, by one or more entities that are investment funds or real estate investment vehicles, and (ii) all or substantially all the activities of the particular entity during the fiscal year consist of holding assets or investing funds for the benefit of any of the investment funds or real estate investment vehicles referred to in subparagraph (i); or (d) a particular entity, if (i) for all or substantially all of the fiscal year ownership interests in the particular entity having a fair market value equal to at least 85% of the fair market value of all ownership interests in the particular entity are held directly, or indirectly through one or more other entities that are investment funds or real estate investment vehicles, by one or more entities that are investment funds or real estate investment vehicles, and (ii) all or substantially all the financial accounting income of the particular entity is comprised of excluded dividends or excluded equity gains or losses. ( entité d’investissement ) investment fund  means an entity (a) that is primarily designed or established to (i) pool assets (which may be financial or non-financial) from a number of investors, at least some of which are not connected, and (ii) generate investment income or gains, or protect against a specific or general event or outcome; (b) that invests in accordance with a defined investment policy; (c) that allows investors to reduce transaction, research and analytical costs or to spread risk collectively; (d) the investors in which have a right to the assets of the entity, or income earned on those assets, based on the respective contributions made by those investors; (e) that is, or whose management is, subject to a regulatory regime (which may include appropriate anti-money laundering and investor protection regulations) in the jurisdiction in which the entity is established or managed; and (f) that is managed by investment management professionals on behalf of its investors. ( fonds de placement ) joint venture , in respect of a particular MNE group (other than a group composed exclusively of excluded entities), means a particular entity (a) whose financial results are reported under the equity method in the consolidated financial statements of the ultimate parent entity of the particular MNE group; (b) of which at least 50% of the ownership interests are held, directly or indirectly, by the ultimate parent entity of the particular MNE group; and (c) that is not (i) the ultimate parent entity of an MNE group, a constituent entity of which, or joint venture in respect of which, is subject to a qualified IIR or qualified UTPR, (ii) an excluded entity described in paragraph 13 (1)(a), (iii) an entity, if (A) all ownership interests in that entity held by group entities in respect of the particular MNE group are held directly by excluded entities described in paragraph 13 (1)(a), and (B) one of the following conditions is met: (I) the entity operates exclusively or almost exclusively to hold assets or invest funds for the benefit of its investors, (II) the entity carries out activities that are ancillary to those carried out by any of those group entities, or (III) all or substantially all of the financial accounting income of the entity is excluded dividends or excluded equity gains, or (iv) a joint venture subsidiary of another joint venture. ( coentreprise ) joint venture entity , of a joint venture group, means the joint venture or a joint venture subsidiary of the group. ( entité d’une coentreprise ) joint venture group  means a joint venture and its joint venture subsidiaries, if any. ( groupe d’une coentreprise ) joint venture subsidiary , of a joint venture, means an entity (other than the joint venture or an excluded entity) the assets, liabilities, income, expenses and cash flows of which would, because of ownership or control, be included in the consolidated financial statements of the joint venture if the references to “ultimate parent entity” in the definition consolidated financial statements in this subsection were read as references to the “joint venture”. ( filiale d’une coentreprise ) jurisdictional adjusted covered taxes  has the same meaning as in subsection 29 (3). ( impôts concernés ajustés juridictionnels ) jurisdictional excess negative tax expense top-up amount  has the same meaning as in subsection 31 (4). ( montant complémentaire de la charge d’impôt négative excédentaire juridictionnel ) jurisdictional GloBE income or loss  has the same meaning as in subsection 33 (4). ( résultat net GloBE juridictionnel ) jurisdictional GloBE revenue  has the same meaning as in subsection 33 (2). ( chiffre d’affaires GloBE juridictionnel ) jurisdictional top-up amount  has the same meaning as in subsection 30 (2). ( montant complémentaire juridictionnel ) local tangible asset , in respect of a constituent entity, means real or immovable property situated in the same jurisdiction as the jurisdiction where the constituent entity is located. ( actif corporel local ) local 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 the entity’s income for tax purposes in the jurisdiction in which the entity is located. ( année d’imposition locale ) look-back period , in respect of an election under subsection 18 (23), means the election year and the four fiscal years immediately preceding the election year. ( période antérieure concernée ) loss year , in respect of a jurisdiction for which the filing constituent entity of an MNE group has made an election under subsection 18 (23), means a fiscal year in the look-back period for which a constituent entity of the MNE group that is located in that jurisdiction has a net asset loss and the total amount of net asset losses of all constituent entities of the MNE group that are located in that jurisdiction exceeds the total amount of their net asset gains. ( année de perte ) low-tax entity  means a constituent entity of an MNE group that is located in (a) a low-tax jurisdiction; or (b) a jurisdiction that would be a low-tax jurisdiction if the effective tax rate of the MNE group for the jurisdiction were determined without regard to any income or expense recorded by an entity in respect of an intragroup financing arrangement. ( entité à faible imposition ) low-tax jurisdiction , in respect of an MNE group for a fiscal year, means a jurisdiction where the MNE group has net GloBE income and the effective tax rate of the MNE group for the jurisdiction for that fiscal year is lower than the minimum rate. ( juridiction à faible imposition ) main entity , in respect of a permanent establishment, means the entity that includes the financial accounting income of the permanent establishment in its financial statements. ( entité principale ) marketable price floor , in respect of the transfer of a tax credit, means 80% of the net present value of the tax credit, where the net present value is determined based on the yield to maturity on a debt instrument with equal or similar maturity — limited to a maximum of five-year maturity — issued by the government that granted the tax credit in the same fiscal year as the tax credit is transferred or, if it is not transferred, the origination year. ( prix plancher commercialisable ) marketable transferable tax credit  means all or a portion of a tax credit (other than a qualified refundable tax credit) if (a) in respect of an originator, (i) the tax credit, or portion of the tax credit, is transferable to an unrelated purchaser in the origination year, or within 15 months of the end of the origination year, under the laws of the jurisdiction granting the tax credit, and (ii) one of the following conditions is met: (A) the tax credit, or portion of the tax credit, is transferred to an unrelated purchaser within 15 months of the end of the origination year at a price that equals or exceeds the marketable price floor, or (B) if the tax credit, or portion of the tax credit, is not transferred, or is transferred to a person that is not an unrelated purchaser, similar tax credits are traded between persons and unrelated purchasers within 15 months of the end of the origination year at a price that equals or exceeds the marketable price floor; and (b) in respect of a particular unrelated purchaser, (i) the tax credit, or portion of the tax credit, is transferable from the particular unrelated purchaser to another unrelated purchaser in the fiscal year in which the tax credit, or portion of the tax credit, is purchased by the particular unrelated purchaser under the laws of the jurisdiction granting the tax credit, and (ii) the tax credit, or portion of the tax credit, is acquired by the particular unrelated purchaser at a price that equals or exceeds the marketable price floor. ( crédit d’impôt transférable commercialisable ) material competitive distortion , in respect of consolidated financial statements, means an application of a specific principle or procedure, under the set of generally accepted accounting principles used in preparing the consolidated financial statements, that results in an aggregate variation greater than €75 million in a fiscal year as compared to the amounts that would have been determined by applying the corresponding IFRS principle or procedure.  ( distorsion importante créant un avantage concurrentiel ) minimum rate  means 15%. ( taux minimum ) Minister  means the Minister of National Revenue. ( ministre ) minority-owned constituent entity  means a constituent entity of an MNE group if the ultimate parent entity of the MNE group holds, directly or indirectly, 30% or less of the ownership interests in the constituent entity. ( entité constitutive à détention minoritaire ) minority-owned parent entity  means a particular minority-owned constituent entity that holds, directly or indirectly, the controlling interest in another minority-owned constituent entity unless the controlling interest of the particular minority-owned constituent entity is held, directly or indirectly, by another minority-owned constituent entity. ( entité mère à détention minoritaire ) minority-owned subgroup  means  (a) a minority-owned parent entity and its minority-owned subsidiaries; or (b) a minority-owned constituent entity that is not a minority-owned parent entity or a minority-owned subsidiary. ( sous-groupe à détention minoritaire ) minority-owned subsidiary  means a minority-owned constituent entity the controlling interest in which is held, directly or indirectly, by a minority-owned parent entity. ( filiale à détention minoritaire ) MNE group  has the same meaning as in subsection 10 (1). ( groupe d’EMN ) multi-parented MNE group  means two or more groups, if (a) the ultimate parent entities of the groups are party to a stapled structure or dual-listed arrangement; and (b) at least one entity or permanent establishment included in any of the groups — or at least one entity, or permanent establishment in respect of a main entity, that would be included in any of the groups if all the ownership interests in that entity or main entity held by group entities of the groups were held by a single group entity of one of the groups — is not located in the jurisdiction in which any other entity or permanent establishment included in any of the groups is located. ( groupe d’EMN à entités mères multiples ) mutual insurance company  means a regulated insurance company that does not have share capital and is owned exclusively by its policyholders. ( compagnie d’assurance mutuelle ) negative tax expense constituent entity  has the same meaning as in subsection 31 (3). ( entité constitutive avec charge d’impôt négative ) net asset gain , of a constituent entity for a fiscal year, in respect of an election under subsection 18 (23), means the net gain from the disposition of local tangible assets by the constituent entity located in the jurisdiction for which the election was made, excluding the gain or loss on a transfer of assets to another group entity. ( profit net sur cession d’actifs ) net asset loss , of a constituent entity for a fiscal year, in respect of an election under subsection 18 (23), means the net loss from the disposition of local tangible assets by the constituent entity in the fiscal year (excluding the gain or loss on a transfer of assets to another group entity), less the total of all amounts, if any, allocated to the constituent entity under a previous election under that subsection. ( perte nette sur cession d’actifs ) net GloBE income  has the same meaning as in subsection 29 (2). ( revenu GloBE net ) net GloBE loss , of an MNE group for a jurisdiction for a fiscal year, means the absolute value of the negative amount, if any, that would be determined, in the absence of section 8 , by the formula A − B where A is the total of all amounts each of which is the GloBE income for the fiscal year of a standard constituent entity of the MNE group that is located in the jurisdiction; and B is the total of all amounts each of which is the GloBE loss for the fiscal year of a standard constituent entity of the MNE group that is located in the jurisdiction. ( perte GloBE nette ) net income or loss from international shipping  has the same meaning as in subsection 19 (2). ( résultat net de transport maritime international ) non-marketable transferable tax credit  means all or a portion of a tax credit (other than a qualified refundable tax credit) that (a) in respect of an originator, is not a marketable transferable tax credit but that is transferable in whole or in part; and (b) in respect of a purchaser, is not a marketable transferable tax credit. ( crédit d’impôt transférable non commercialisable ) non-profit organization  means an entity, if (a) the entity is established and operated in the jurisdiction where it is located (i) exclusively for religious, charitable, scientific, artistic, cultural, athletic, educational or other similar purposes, or (ii) as a professional organization, business league, chamber of commerce, labour organization, agricultural or horticultural organization, civic league or an organization operated exclusively for the promotion of social welfare; (b) substantially all of the income of the entity from the activities referred to in paragraph (a) is exempt from income tax in the jurisdiction where the entity is located; (c) the entity has no shareholders or members that have a proprietary or beneficial interest in its income or assets; (d) the income or assets of the entity may not be distributed to, or applied for the benefit of, a private person or non-charitable entity other than (i) pursuant to the conduct of the entity’s charitable activities, (ii) as payment of reasonable compensation for services rendered or for the use of property or capital, or (iii) as payment representing the fair market value of property that the entity has purchased; (e) on termination, liquidation or dissolution of the entity, all of the entity’s assets must be distributed or revert to a non-profit organization or to the government (including any governmental entity) of the jurisdiction where it is located or any political subdivision thereof; and (f) the entity does not carry on a trade or business that is not directly related to the purposes for which it was established. ( organisation à but non lucratif ) non-qualifying gain or loss  means the lesser of (a) the portion of any gain or loss, arising in respect of a transfer of assets and liabilities in connection with a GloBE reorganization, that is subject to income or profits tax in the jurisdiction where the transferor is located; and (b) the portion of the gain or loss that is reflected in the financial accounts. ( profit ou perte non admissible ) OECD  means the Organisation for Economic Co-operation and Development. ( OCDE ) OECD Model Tax Convention  means the Model Tax Convention on Income and on Capital: Condensed Version 2017 , published by the OECD on December 18, 2017, as amended from time to time. ( Modèle de Convention fiscale de l’OCDE ) origination year  means the fiscal year in which the originator of a tax credit satisfies the eligibility criteria for the tax credit under the laws of the jurisdiction granting the tax credit. ( année de création ) originator  means the person that engages in the activities that generate a tax credit. ( initiateur ) other comprehensive income , in respect of a constituent entity, means items of income and expense that are recognized outside of the profit or loss account in the financial statements used in determining the entity’s GloBE income or loss. ( autres éléments du résultat global ) owner  means an entity that directly or indirectly holds an ownership interest in another entity. ( détenteur ) ownership interest  means an interest that an entity or person holds in a particular entity (a) in the case of a direct interest, that (i) carries rights to the profits, capital or reserves of the particular entity or the particular entity’s permanent establishment, and (ii) would, in the absence of any requirement to consolidate the assets, liabilities, income, expenses and cash flows of the particular entity in the consolidated financial statements, be accounted for as equity in those statements; or (b) in the case of an indirect interest, through a chain of direct ownership interests. ( titre de participation ) partially-owned parent entity  means a constituent entity of an MNE group (other than an ultimate parent entity, permanent establishment, investment entity or insurance investment entity) (a) that holds, directly or indirectly, an ownership interest in another constituent entity of the MNE group; and (b) in which more than 20% of the ownership interests, determined having regard only to the ownership interests that carry rights to profits, are held, directly or indirectly, by persons or entities that are not constituent entities of the MNE group. ( entité mère partiellement détenue ) passive income  means income that is included in computing a constituent entity’s GloBE income or loss and that is (a) a dividend or dividend equivalent; (b) interest or an interest equivalent; (c) rent; (d) a royalty; (e) an annuity; or (f) a net gain from property of a type that produces income described in any of paragraphs (a) to (e). ( revenu passif ) patronage dividend  means a distribution by a cooperative to its members. ( ristourne ) pension fund  means (a) an entity that is established and operated in a jurisdiction exclusively or almost exclusively to administer or provide retirement benefits and ancillary or incidental benefits to individuals, if (i) the entity is regulated as such by that jurisdiction or one of its political subdivisions or local authorities, or (ii) those benefits are secured or otherwise protected by national regulations and funded by a pool of assets held through a fiduciary arrangement or trust to secure the fulfilment of the corresponding pension obligations against a case of insolvency of the entity or the MNE group of which the entity is a member; or (b) a pension services entity. ( fonds de pension ) pension services entity  means an entity that is established and operated exclusively or almost exclusively (a) to invest funds for the benefit of entities described in paragraph (a) of the definition pension fund in this subsection; or (b) to carry out activities that are ancillary to the regulated activities carried out by an entity described in that paragraph that is a member of the same group. ( entité de services de fonds de pension ) permanent establishment  means a place of business, including a deemed place of business, (a) that is situated in a jurisdiction and treated as a permanent establishment in accordance with an applicable tax treaty in force, provided that the jurisdiction taxes the income attributable to it in accordance with a provision similar to Article 7 of the OECD Model Tax Convention; (b) if there is no applicable tax treaty in force, in respect of which a jurisdiction taxes the income attributable to that place of business under its domestic law on a net basis similar to the manner in which it taxes its own tax residents; (c) if a jurisdiction has no corporate income tax system, that is situated in that jurisdiction and that would be treated as a permanent establishment in accordance with the OECD Model Tax Convention, provided that the jurisdiction would have had the right to tax the income attributable to it in accordance with Article 7 of that model convention; or (d) that is not already described in paragraphs (a) to (c) and through which operations are conducted outside the jurisdiction where the entity that would be the main entity, if the place of business were a permanent establishment, is located, provided that that jurisdiction exempts the income attributable to the operations conducted through the place of business. ( établissement stable ) person  includes a corporation, partnership or trust. ( personne ) portfolio holding , at any time in a fiscal year, means ownership interests in an entity that are held at that time by a constituent entity, either alone or together with other group entities, and that carry rights to less than 10% of the profits, capital, reserves or voting rights of that entity. ( titres de portefeuille ) prescribed  means (a) in the case of a form, the information to be given on a form or the manner of filing a form, authorized by the Minister; (b) in the case of the manner of making or filing an election, authorized by the Minister; and (c) in any other case, prescribed by regulation or determined in accordance with rules prescribed by regulation. ( prescrit ) QDMTT transition year , of an MNE group in respect of a jurisdiction, means the first fiscal year in which (a) a constituent entity of, or joint venture entity in respect of, the MNE group that is located in the jurisdiction is subject to a qualified domestic minimum top-up tax; and (b) subsection 33 (1), 47 (2) or 53 (3), section 45 or an equivalent provision under the laws of the jurisdiction does not apply for the jurisdiction. ( année de transition ICMNA ) qualified ancillary international shipping income  has the same meaning as in subsection 19 (7). ( revenu de transport maritime international accessoire admissible ) qualified debt release amount , for a fiscal year, of a constituent entity that is a debtor, means an amount in respect of a debt release to the extent that (a) the debt release is pursuant to a statutory insolvency or bankruptcy proceeding (i) that is supervised by a court or other judicial body in the jurisdiction in which the debtor is located, or (ii) under which an independent insolvency administrator is appointed; (b) the following conditions are met: (i) the debt release arises pursuant to an arrangement with one or more creditors that are not connected with the debtor (each referred to in this definition as a “third-party creditor”), (ii) it is reasonable to consider that, in the absence of the release of debts owed to one or more third-party creditors under the arrangement, the debtor would be insolvent within 12 months of the date of the release, and (iii) the debtor provides an independent expert opinion attesting that the condition in subparagraph (ii) is met; or (c) if neither paragraph (a) nor (b) applies, (i) the amount is in respect of a debt owed to a third-party creditor, (ii) the debtor’s liabilities exceed the fair market value of its assets, determined immediately before the debt release, and (iii) the amount does not exceed the least of (A) if, as a result of the debt release, the debtor’s assets are greater than or equal to its liabilities, the debtor’s liabilities less the fair market value of its assets, determined immediately before the debt release, (B) if any amount included, as a result of the debt release, in computing net income or loss is offset by a corresponding reduction in deferred tax assets, the reduction in the debtor’s deferred tax assets resulting from the debt release, and (C) the amount included, as a result of the debt release, in computing net income or loss. ( montant de la libération de la dette admissible ) qualified domestic minimum top-up tax , for a fiscal year, means a law of a jurisdiction that has the status of a qualified domestic minimum top-up tax (including transitional qualified status) for the fiscal year as determined by the Inclusive Framework and published on the OECD’s website. ( impôt complémentaire minimum national admissible ) qualified flow-through ownership interest  has the same meaning as in subsection 28 (1). ( titre de participation intermédiaire admissible ) qualified IIR , for a fiscal year, means an IIR that has qualified status (including transitional qualified status) for the fiscal year as determined by the Inclusive Framework and published on the OECD’s website. ( RDIR admissible ) qualified imputation tax  means an amount of covered taxes, paid or accrued by a constituent entity, that is (a) imposed under the laws of a jurisdiction (referred to in this definition as the “subject jurisdiction”); and (b) refundable to, or creditable against the tax liability of, the beneficial owner of a dividend or similar distribution by the constituent entity (or by the main entity in respect of the constituent entity, if the constituent entity is a permanent establishment), if (i) the amount is refundable or creditable under (A) subsection 126(1) or (2) of the Income Tax Act , or (B) a provision of the laws of another jurisdiction that is substantially similar to one of those subsections, or (ii) the beneficial owner is (A) subject to tax on a current basis, in respect of the dividend or similar distribution, under the laws of the subject jurisdiction at a nominal rate that is greater than or equal to the minimum rate, (B) an individual who is (I) resident for income tax purposes in the subject jurisdiction, and (II) subject to tax, in respect of the dividend or similar distribution as ordinary income, under the laws of the subject jurisdiction, (C) a governmental entity or international organization, (D) an investment entity (other than a group entity in respect of the constituent entity) that is created and regulated in the subject jurisdiction, (E) a non-profit organization or pension fund that is created and managed in the subject jurisdiction, or (F) a life insurance company that is located in the subject jurisdiction to the extent that the dividend or similar distribution is (I) received in connection with a business that is substantially similar to that of a pension fund, and (II) subject to tax, under the laws of the subject jurisdiction, in a manner that is substantially similar to the manner in which a pension fund is, under the laws of the subject jurisdiction, subject to tax in respect of a dividend or similar distribution. ( impôt d’imputation admissible ) qualified refundable tax credit  means a refundable tax credit (other than any amount of tax creditable or refundable pursuant to a qualified imputation tax or a disqualified refundable imputation tax) to the extent that it is designed to be payable or available as cash or cash equivalents within four years from when a constituent entity satisfies the conditions for receiving the credit under the laws of the jurisdiction granting the credit. ( crédit d’impôt remboursable admissible ) qualified UTPR , for a fiscal year, means a UTPR that has qualified status (including transitional qualified status) for the fiscal year as determined by the Inclusive Framework and published on the OECD’s website. ( RPII admissible ) qualifying MNE group  has the same meaning as in subsection 9 (1). ( groupe d’EMN admissible ) qualifying non-profit subsidiary , for a fiscal year, means an entity in respect of an MNE group if (a) the entity is wholly owned by one or more entities that are non-profit organizations; and (b) the revenue of the MNE group for the fiscal year, determined without reference to the revenues of any group entities that are non-profit organizations and of any group entities that would, in the absence of this definition, be described in paragraph 13 (1)(b) or (c), is less than (i) the revenue threshold of the MNE group for the fiscal year, and (ii) 25% of the revenue of the MNE group for the fiscal year. ( filiale à but non lucratif admissible ) qualifying tier one capital  means an instrument issued by a constituent entity pursuant to regulatory requirements applicable to the banking or insurance sector that is convertible to equity or written down if a pre-specified trigger event occurs and that has other features that are designed to aid loss absorbency in the event of a financial crisis. ( fonds propres de catégorie 1 admissibles ) real estate investment vehicle  means an entity (a) the taxation of which achieves a single level of taxation either in its hands or the hands of its interest holders (with at most one year of deferral); and (b) that (i) holds predominantly immovable property, and (ii) is itself widely held. ( véhicule d’investissement immobilier ) recapture account loss carry-forward  has the same meaning as in subsection 37 (3). ( report des pertes du compte de récupération ) recapture exception accrual  means a tax expense accrued in the financial accounts of a constituent entity that is attributable to changes in associated deferred tax liabilities in respect of (a) cost recovery allowance on a tangible asset; (b) the cost of a licence or similar arrangement from a government for the use of immovable property or the exploitation of natural resources that entails significant investment in tangible assets; (c) research and development expenses; (d) decommissioning and remediation expenses; (e) fair value accounting on unrealized net gains; (f) foreign currency exchange net gains; (g) insurance reserves and insurance policy deferred acquisition costs; (h) a gain that is (i) from the sale of tangible property located in the jurisdiction in which the constituent entity is located, and (ii) re-invested in tangible property located in the jurisdiction; and (i) an additional amount accrued as a result of accounting principle changes with respect to an item described in any of paragraphs (a) to (h). ( charge d’impôt non soumise à récupération ) regulation  means a regulation made under this Act. ( règlement ) relevant parent entity  has the same meaning as in subsection 14 (3). ( entité mère pertinente ) revenue threshold  has the same meaning as in subsection 9 (2). ( seuil de chiffre d’affaires ) reverse hybrid entity  means a flow-through entity, if (a) in relation to an owner that holds a direct ownership interest in the flow-through entity, the flow-through entity is not fiscally transparent; or (b) in relation to an owner that holds an indirect ownership interest in the flow-through entity, (i) the flow-through entity is not fiscally transparent, and (ii) each entity through which that owner holds its indirect ownership interest is fiscally transparent. ( entité hybride inversée ) revocation year , in respect of a five-year election or an election under section 26 , means the first fiscal year for which the election is no longer in effect because it has been revoked. ( année de révocation ) short-term portfolio holding , of a constituent entity that receives or accrues dividends or other distributions, at any time in a fiscal year, means a portfolio holding that has been economically held by the constituent entity for less than one year at the date of the distribution. ( titre de portefeuille à court terme ) standard constituent entity  has the same meaning as in subsection 11 (3). ( entité constitutive type ) stapled structure  means an arrangement entered into by the ultimate parent entities of two or more groups under which (a) not less than 50% of the ownership interests in each ultimate parent entity are (by reason of the form of ownership, restrictions on transfer or any other terms or conditions) combined with not less than 50% of the ownership interests in each other ultimate parent entity and cannot be transferred or traded other than in that combined form; (b) if the combined ownership interests of the ultimate parent entities are listed on a securities market, they are quoted at a single price; and (c) financial statements are prepared by one of the ultimate parent entities in which the assets, liabilities, income, expenses and cash flows of all the entities of all the groups are presented together as those of a single economic unit, and those financial statements (i) would be consolidated financial statements if the entities of all the groups were included in a single group and the ultimate parent entity that prepared the financial statements was the ultimate parent entity of that group, and (ii) are required by an applicable regulatory regime of a jurisdiction to be externally audited. ( structure indissociable ) stateless constituent entity  means a constituent entity of an MNE group that is either (a) a stateless entity under paragraph 5 (2)(b); or (b) a stateless permanent establishment under paragraph 5 (3)(d). ( entité constitutive apatride ) substance-based income exclusion amount  has the same meaning as in subsection 32 (1). ( montant de l’exclusion de revenus fondée sur la substance ) substitute loss carry-forward recapture amount , of a constituent entity that is located in a particular jurisdiction, means an amount if (a) the amount would be a tax loss or a portion of a tax loss (referred to in this definition as the “consumed domestic loss”) of the constituent entity if the consumed domestic loss were not offset against another amount — in respect of the income of another entity (referred to in this definition as the “controlled foreign company”) that is located in a jurisdiction other than the particular jurisdiction and in which the constituent entity holds, directly or indirectly, an ownership interest — that is included, under the controlled foreign company tax regime of the particular jurisdiction, in computing the constituent entity’s taxable income in the particular jurisdiction; and (b) the income tax laws of the particular jurisdiction allow the consumed domestic loss to be recaptured by the constituent entity in subsequent taxation years, by recharacterizing amounts of income of the constituent entity from sources in the particular jurisdiction as amounts in respect of income of the controlled foreign company that are included, under the controlled foreign company tax regime of the particular jurisdiction, in computing the constituent entity’s taxable income in the particular jurisdiction or as amounts of income from another foreign source. ( montant de récupération du report de pertes de remplacement ) substitute loss carry-forward tax credit , of a constituent entity that is located in a particular jurisdiction, means a tax credit, or any portion of a tax credit, of the constituent entity that (a) arises under the income tax laws of the particular jurisdiction in respect of tax paid to the government of a jurisdiction other than the particular jurisdiction by another entity (referred to in this definition as the “controlled foreign company”) that is located in a jurisdiction other than the particular jurisdiction, in which the constituent entity holds, directly or indirectly, an ownership interest, on income (referred to in this definition as the “attributed controlled foreign company income”) of the controlled foreign company that is included under the controlled foreign company tax regime of the particular jurisdiction for the purposes of determining the constituent entity’s taxable income in the particular jurisdiction; (b) is not allowed to be used in the particular taxation year in which it arises solely because the income tax laws of the particular jurisdiction require, in determining the constituent entity’s taxable income, that an amount that would be a tax loss of the constituent entity in the absence of the attributed controlled foreign company income in the particular taxation year be offset against the attributed controlled foreign company income in priority to the tax credit, or portion of the tax credit, being used to reduce or eliminate any covered taxes for which the constituent entity would otherwise be liable in respect of the attributed controlled foreign company income under the income tax laws of the particular jurisdiction; and (c) is, under the income tax laws of the particular jurisdiction, allowed to be used by the constituent entity, in a taxation year following the particular taxation year, to reduce or eliminate any covered taxes for which the constituent entity would otherwise be liable under the income tax laws of the particular jurisdiction in respect of income that is included in computing the constituent entity’s GloBE income or loss. ( crédit d’impôt pour report de pertes de remplacement ) tax  means a compulsory unrequited payment to general government. ( impôt ) tax transparent entity , in relation to an owner, means a flow-through entity to the extent that the flow-through entity is fiscally transparent under the laws of the jurisdiction in which the owner is located. ( entité fiscalement transparente ) tax transparent structure  means a chain of entities through which a particular entity holds an ownership interest, if the entities are (a) flow-through entities; and (b) fiscally transparent in relation to the particular entity. ( structure fiscalement transparente ) tax treaty  means an agreement for the avoidance of double taxation with respect to taxes on income and on capital. ( convention fiscale ) top-up amount  has the same meaning as in subsection 30 (1). ( montant complémentaire ) top-up percentage  has the same meaning as in subsection 30 (3). ( pourcentage complémentaire ) total deferred tax adjustment amount  has the same meaning as in subsection 25 (1). ( montant total de l’ajustement pour impôts différés ) transitional special allocation year , of an MNE group, means any fiscal year beginning on or before December 31, 2025 and ending on or before June 30, 2027. ( année de répartition spéciale transitoire ) ultimate parent entity  has the same meaning as in subsection 12 (1). ( entité mère ultime ) unclaimed accrual , of a constituent entity of an MNE group for a fiscal year, means an increase in a deferred tax liability recorded in the financial accounts of the constituent entity for the fiscal year if (a) the increase is not expected to reverse on or before the last day of the fifth fiscal year following the fiscal year; and (b) the filing constituent entity of the MNE group elects to not include the increase in determining the constituent entity’s total deferred tax adjustment amount for the fiscal year. ( accumulation non réclamée ) unrelated purchaser , in respect of the transfer of a tax credit by a person, means another person that acquires the tax credit unless (a) based on all the relevant facts and circumstances, one person has control of the other or both persons are under the control of the same person or persons; (b) one of the persons owns directly or indirectly, (i) if the other person is a corporation, shares of the capital stock of the corporation that (A) give their holder at least 50% of the votes of the shareholders of the corporation, and (B) have a fair market value of at least 50% of the fair market value of all the issued and outstanding shares of the capital stock of the corporation, and (ii) in any other case, at least 50% of the beneficial interest in the other person; or (c) a third person owns, directly or indirectly, in respect of each of the other persons (i) if one or both of those other persons are corporations, shares of the capital stock of each such corporation that (A) give their holder at least 50% of the votes of the shareholders of the corporation, and (B) have a fair market value of at least 50% of the fair market value of all the issued and outstanding shares of the capital stock of the corporation, and (ii) if one or both of those persons are not corporations, at least 50% of the beneficial interest in each such person. ( acheteur non lié ) UTPR  means a law of a jurisdiction that may reasonably be considered to have been enacted with the intention of implementing, in whole or in part, Articles 2.4 to 2.6 of the GloBE Model Rules. ( RPII ) Interpretation — permanent establishment (2) In applying the provisions of this Act in respect of a constituent entity that is a permanent establishment of a main entity or that is the main entity, (a) a reference to a “constituent entity” is to be interpreted as a reference to the permanent establishment or the main entity, as the context requires; and (b) the main entity is deemed to hold a controlling interest in the permanent establishment. Interpretation — flow-through entity (3) In applying the provisions of this Act in respect of a constituent entity that is a flow-through entity or that is an owner in respect of the flow-through entity, a reference to a “constituent entity” is to be interpreted as a reference to the owner or the flow-through entity, as the context requires. Interpretation — financial accounts (4) A reference to financial accounts or to financial statements is to be interpreted as a reference to the accounts or statements (which may in some circumstances be hypothetical) that are the basis for determining the financial accounting income of a constituent entity. Interpretation — connected (5) A person or entity is “connected” with another person or entity if they are “closely related” within the meaning of that term in Article 5(8) of the OECD Model Tax Convention. Interpretation — trusts (6) A reference to a trust includes an estate, and a reference to a trustee includes any legal representative of a trust having ownership or control of the trust property of that trust. Interpretation — subject to qualified IIR, etc. (7) A constituent entity of, or joint venture entity in respect of, an MNE group (referred to in this subsection as the “subject entity”) is considered to be subject to (a) a qualified IIR or qualified UTPR if a constituent entity of the MNE group (or person liable on behalf of a constituent entity) would, if the subject entity had a top-up amount (or equivalent) greater than nil, be subject to tax under the qualified IIR or the qualified UTPR, as the case may be, in respect of that top-up amount (or equivalent); and (b) a qualified domestic minimum top-up tax (including, for greater certainty, the one implemented in Part 3) if a constituent entity of, or joint venture entity in respect of, the MNE group (or person liable on behalf of a constituent entity or joint venture entity) would, if the subject entity had a domestic top-up amount (or equivalent) greater than nil, be subject to tax under the qualified domestic minimum top-up tax in respect of that domestic top-up amount (or equivalent). Deemed flow-through entity and tax transparent entity (8) A constituent entity that is not subject to covered taxes as a result of being tax resident in any jurisdiction and is not subject to a qualified domestic minimum top-up tax is deemed to be a flow-through entity and a tax transparent entity, to the extent that (a) it is fiscally transparent under the laws of the jurisdiction where its owners are located; (b) it does not have a place of business in the jurisdiction where it was created; and (c) its income, expenditure, profit or loss is not attributable to a permanent establishment. Interpretation — election (9) A reference to an election or a revocation of an election for a fiscal year, or to the filing constituent entity of an MNE group electing or revoking an election for a fiscal year, is to be interpreted as a reference to an election or a revocation made in the GIR of the MNE group for the fiscal year. Interpretation 3 (1) This Part, Part 2 and relevant provisions of Part 5 implement the GloBE Model Rules, the GloBE Commentary and the administrative guidance in respect of the GloBE Model Rules approved by the Inclusive Framework and published by the OECD from time to time and, unless the context otherwise requires, these Parts and provisions are to be interpreted consistently with those sources, as amended from time to time. Designation of additional interpretive guidance (2) The Governor in Council may from time to time by regulation designate additional sources in respect of which the interpretation of this Act should be consistent. Binding on His Majesty 4 This Act is binding on His Majesty in right of Canada or a province. Location of entities 5 (1) Subject to subsection 6 (1), an entity, other than a flow-through entity, is located (a) in a jurisdiction if the entity is tax resident in that jurisdiction based on its place of management or creation, or based on similar criteria; and (b) in any other case, in the jurisdiction where it was created. Location of flow-though entities (2) A flow-through entity (a) is located in the jurisdiction where it was created, if (i) the flow-through entity is the ultimate parent entity of an MNE group, or (ii) the flow-through entity (A) is an entity described in paragraph 14 (3)(c), and (B) has a direct or indirect ownership interest in at least one constituent entity of the MNE group that (I) has a top-up amount, and (II) is not located in the jurisdiction where the flow-through entity was created; and (b) in any other case, is a stateless entity. Location of permanent establishments (3) In determining the jurisdiction where a permanent establishment is located, (a) if the permanent establishment is described in paragraph (a) of the definition permanent establishment in subsection 2 (1), it is located in the jurisdiction where it is treated as a permanent establishment and is taxed under the applicable tax treaty; (b) if the permanent establishment is described in paragraph (b) of that definition, it is located in the jurisdiction where it is subject to net basis taxation based on its business presence; (c) if the permanent establishment is described in paragraph (c) of that definition, it is located in the jurisdiction where it is situated; and (d) if the permanent establishment is described in paragraph (d) of that definition, it is a stateless permanent establishment. Stateless entity — notional jurisdiction (4) A stateless entity or stateless permanent establishment is deemed to be located in a notional jurisdiction in which no other entity or permanent establishment is located. Change of location (5) If an entity’s location changes during a fiscal year, it is deemed to be located, for the fiscal year, in the jurisdiction where it was located at the beginning of that fiscal year. Dual-located entity — tie-breaker rule 6 (1) If a constituent entity would, in the absence of this section, be located in more than one jurisdiction for a fiscal year under subsection 5 (1), the following rules apply: (a) if the jurisdictions are party to a tax treaty that is in force and the constituent entity is deemed to be resident in only one of the jurisdictions for purposes of the treaty, the entity is located in that jurisdiction for the fiscal year; and (b) in any other case, (i) if the constituent entity has, for the fiscal year, a greater amount of covered taxes (determined without reference to any taxes under a controlled foreign company tax regime) in one of the jurisdictions than in the other jurisdictions, the constituent entity is located in that jurisdiction for the fiscal year, (ii) if subparagraph (i) does not apply and the constituent entity has a greater substance-based income exclusion amount for one of the jurisdictions than for the other jurisdictions, the constituent entity is located in that jurisdiction for the fiscal year, and (iii) if subparagraphs (i) and (ii) do not apply, the constituent entity is, for the fiscal year, (A) if it is an ultimate parent entity of an MNE group, located in the jurisdiction where it was created, and (B) in any other case, a stateless entity. Substance-based income exclusion amount (2) For the purposes of subparagraph (1)(b)(ii), a constituent entity’s substance-based income exclusion amount for a jurisdiction for a fiscal year is (a) if a substance-based income exclusion amount is calculated for the jurisdiction for the fiscal year, the amount that would be determined for that constituent entity under subsection 32 (1) if the constituent entity were the only constituent entity that is located in that jurisdiction and if the reference to “standard constituent entity” in that subsection were read as a reference to “constituent entity”; and (b) in any other case, nil. Dual-located entity — deeming rule (3) If a constituent entity that would, in the absence of subsection (1), be located in more than one jurisdiction (each referred to in this subsection as a “relevant jurisdiction”), is located in only one of those jurisdictions (referred to in this subsection as the “location jurisdiction”) because of subsection (1) and is not subject to tax under a qualified IIR in the location jurisdiction, (a) where Canada is a relevant jurisdiction (but is not the location jurisdiction) and Canada is not restricted from taxing the constituent entity under Part 2 because of an applicable tax treaty, the entity is deemed to be located in Canada for the purposes of clause 14 (1)(b)(i)(B) and subparagraph 14 (3)(a)(i); and (b) where Canada is not a relevant jurisdiction, and the constituent entity is subject to tax in a relevant jurisdiction under a qualified IIR because of a provision under the laws of that relevant jurisdiction that is equivalent in effect to paragraph (a), the entity is deemed to be located in that relevant jurisdiction for the purposes of subsection 14 (3). Application Currency conversion — GloBE calculations 7 (1) Subject to subsection (2), if an amount that is relevant to the determination of the top-up amount, or of any amount or result relevant to the determination of the top-up amount, of a constituent entity of an MNE group for a fiscal year is denominated in a currency other than the reporting currency of the consolidated financial statements of the ultimate parent entity of the MNE group and is not converted to that reporting currency in the course of preparing the consolidated financial statements, that amount is to be converted to that reporting currency using the foreign currency translation principles of the financial accounting standard that would have been used to convert the amount to the reporting currency if that conversion were undertaken in the course of preparing the consolidated financial statements. Euro-denominated thresholds (2) For the purposes of determining if any materiality or other threshold in this Act that is denominated in the currency of the European Monetary Union is satisfied or exceeded by an amount in respect of a group, entity or jurisdiction for a particular fiscal year, if the amount is denominated in another currency, the amount is to be converted from that currency to the currency of the European Monetary Union using the average of the daily rates of exchange, in respect of the two currencies for the month of December included in the fiscal year immediately preceding the particular fiscal year, as quoted by (a) the European Central Bank; (b) the Bank of Canada, if the European Central Bank does not quote a daily rate of exchange in respect of the two currencies; or (c) another source that is acceptable to the Minister, if neither the European Central Bank nor the Bank of Canada quote a daily rate of exchange in respect of the two currencies. If subsections (1) and (2) do not apply (3) Except as specifically otherwise provided, if an amount is relevant to a determination or computation that is required for the purposes of this Act in respect of an entity included in an MNE group or in respect of the MNE group for a fiscal year (a) the currency in which that amount is to be denominated for use in the determination or computation is the reporting currency of the consolidated financial statements of the ultimate parent entity of the MNE group; and (b) if that amount is not denominated in the reporting currency, it is to be converted, for use in the determination or computation, to the reporting currency using the average for the fiscal year of the daily rates of exchange quoted by the Bank of Canada or, if there is no daily rate quoted by the Bank of Canada for a particular day, a daily rate of exchange acceptable to the Minister, in respect of the two currencies. Negative amounts 8 Except as specifically otherwise provided, if an amount or a number is required under this Act to be determined or calculated by or in accordance with an algebraic formula and the amount or number determined or calculated would, but for this section, be a negative amount or number, it is deemed to be nil. Scope Definition of qualifying MNE group 9 (1) A qualifying MNE group for a particular fiscal year means an MNE group that meets the following conditions: (a) revenue reported in the consolidated financial statements of the ultimate parent entity of the MNE group is equal to or greater than the revenue threshold of the MNE group in at least two of the four fiscal years immediately preceding the particular fiscal year; and (b) the MNE group is not composed exclusively of excluded entities for the particular fiscal year. Definition of revenue threshold (2) The revenue threshold of an MNE group for a fiscal year means the amount determined by the formula A × B ÷ 365 where A is €750 million; and B is the number of days in the fiscal year. Revenue — pre-merger years (3) For the purposes of the definition qualifying MNE group in subsection (1) and subsection (4), if an MNE group is formed as a result of a merger in a particular fiscal year between a group, or an entity that is not included in a group immediately before the merger (referred to in this subsection as an “ungrouped entity”), and one or more other groups or ungrouped entities, then for any fiscal year preceding the particular fiscal year (referred to in this subsection as the “preceding year”) (a) all amounts that are the revenue or a portion of the revenue reported in the consolidated financial statements of the ultimate parent entity of any of those groups or in the financial statements of any of those ungrouped entities, as the case may be, and that correspond to any period included in the preceding year (with the revenue apportioned between periods, if necessary, on a just and reasonable basis) are to be aggregated; and (b) the aggregate amount determined under paragraph (a) is deemed to be the revenue reported in the consolidated financial statements of the ultimate parent entity of the MNE group for the preceding year. Qualifying MNE group — demerger (4) If there is a demerger of an MNE group that was a qualifying MNE group in the fiscal year immediately preceding the fiscal year in which the demerger occurs and any of the groups resulting from the demerger is an MNE group (referred to in this subsection as a “demerged MNE group”), the condition in paragraph (a) of the definition qualifying MNE group in subsection (1) is deemed to be satisfied in respect of the demerged MNE group for (a) the first fiscal year of the demerged MNE group ending after the demerger occurs (referred to in this paragraph as the “first post-demerger year”), if the revenue reported in the consolidated financial statements of the ultimate parent entity of the demerged MNE group for the first post-demerger year is greater than or equal to the amount determined by the formula A × B ÷ 365 where A is €750 million, and B is the number of days in the first post-demerger year; and (b) any fiscal year (referred to in this paragraph as the “tested year”) among the three fiscal years of the demerged MNE group immediately following the first post-demerger year, if the revenue reported in the consolidated financial statements of the ultimate parent entity of the demerged MNE group for at least two out of the tested year and any other fiscal years of the demerged MNE group ending before the tested year and after the demerger (the tested year and each of those other years referred to in this paragraph as a “post-demerger year”) is greater than or equal to the amount determined by the formula A × C ÷ 365 where C is the number of days in the post-demerger year. Merger — meaning (5) For the purposes of subsection (3), a merger is any arrangement under which (a) all or substantially all of the entities of two or more groups are brought under common control such that those entities form a single group immediately following the conclusion of the arrangement; or (b) one or more entities that are not included in any group are brought under common control with another entity, or one or more groups of entities, such that all those entities form a single group immediately following the conclusion of the arrangement. Demerger — meaning (6) For the purposes of subsection (4), a demerger is any arrangement under which the entities of a group are separated into two or more groups. Interpretation — fiscal year (7) For the purposes of paragraph (1)(a) and subsection (3), if an MNE group formed as a result of a merger does not have four actual fiscal years preceding the merger, the contiguous periods of equal length to the earliest of its actual fiscal years, the latest of which immediately precedes that earliest actual fiscal year, are deemed to be fiscal years of the MNE group. Definition of MNE group 10 (1) An MNE group means a group that includes at least one entity or permanent establishment that is not located in the jurisdiction in which the ultimate parent entity of the group is located. Definition of group (2) A group means (a) an ultimate parent entity and one or more other entities each of whose assets, liabilities, income, expenses and cash flows, by reason of ownership or control, either (i) are included in the consolidated financial statements of the ultimate parent entity, or (ii) would be included in the consolidated financial statements of the ultimate parent entity but for an exclusion on size or materiality grounds, or on the grounds that the entity is held for sale; or (b) an entity that (i) is not part of a group described in paragraph (a), and (ii) has one or more permanent establishments that are not located in the jurisdiction in which the entity is located. Definition of constituent entity 11 (1) A constituent entity , in respect of a group, means (a) an entity, other than an excluded entity, that is included in the group; or (b) a permanent establishment of a main entity that is described in paragraph (a). Permanent establishment — separate treatment (2) Except as expressly otherwise provided, a permanent establishment that is a constituent entity under paragraph (1)(b) is treated as a constituent entity separate from its main entity and any other permanent establishment of that main entity. Definition of standard constituent entity (3) A standard constituent entity , of an MNE group, means a constituent entity other than (a) an investment entity; (b) an insurance investment entity; or (c) a minority-owned constituent entity. Definition of ultimate parent entity 12 (1) An ultimate parent entity means (a) an entity (i) that has, directly or indirectly, a controlling interest in any other entity, and (ii) in which no other entity has, directly or indirectly, a controlling interest; or (b) the main entity of a group that is described in paragraph 10 (2)(b). Exclusion — sovereign wealth funds (2) For the purposes of subsection (1), any governmental entity that satisfies the condition in subparagraph (b)(ii) of the definition governmental entity in subsection 2 (1) is deemed not to have, directly or indirectly, a controlling interest in any other entity. Definition of excluded entity 13 (1) An excluded entity , for a fiscal year, means (a) an entity (referred to in this subsection as a “primary excluded entity”) that is throughout the fiscal year (i) a governmental entity, (ii) an international organization, (iii) a non-profit organization, (iv) a pension fund, (v) an investment fund that is an ultimate parent entity, (vi) a real estate investment vehicle that is an ultimate parent entity, or (vii) a qualifying non-profit subsidiary; (b) an entity if (i) throughout the fiscal year ownership interests in the entity having a fair market value equal to at least 95% of the fair market value of all ownership interests in the entity are held directly, or indirectly through one or more excluded entities, by one or more primary excluded entities (other than a pension fund that is a pension services entity), and (ii) all or substantially all the activities of the entity during the fiscal year consist of (A) holding assets for the benefit of the one or more primary excluded entities, (B) investing funds for the benefit of the one or more primary excluded entities, (C) activities that are ancillary to those carried out by the one or more primary excluded entities, or (D) any combination of clauses (A) to (C); or (c) an entity if (i) throughout the fiscal year ownership interests in the entity having a fair market value equal to at least 85% of the fair market value of all ownership interests in the entity are held directly, or indirectly through one or more excluded entities, by one or more primary excluded entities (other than a pension fund that is a pension services entity), and (ii) all or substantially all of the entity’s financial accounting income for the fiscal year consists of excluded dividends or excluded equity gains or losses. Excluded entity — constituent entity election (2) For the purposes of subsection (1), if the relevant filing constituent entity elects in respect of a particular entity that would, in the absence of this subsection, be an excluded entity under paragraph (1)(b) or (c) for a fiscal year (a) the particular entity is deemed not to be an excluded entity for the fiscal year; and (b) the election is a five-year election. PART 2 Global Minimum Tax Division 1 Liability for Tax Top-up tax liability 14 (1) A person must pay a tax in respect of an MNE group for a fiscal year in the amount determined under subsection 15 (1) if (a) the MNE group is a qualifying MNE group for the fiscal year; (b) one of the following conditions is met: (i) the person is (A) a relevant parent entity of the MNE group for the fiscal year, and (B) located in Canada, (ii) the person would, under the relevant assumptions, include in its income for the purposes of Part I of the Income Tax Act income for the fiscal year of a relevant parent entity that is (A) located in Canada, and (B) not a person; and (c) the relevant parent entity referred to in subparagraph (b)(i) or (ii) has a direct or indirect ownership interest at any time in the fiscal year in one or more constituent entities of the MNE group that (i) is not located in Canada, and (ii) has a top-up amount for the fiscal year. Relevant assumptions (2) For the purposes of subparagraph (1)(b)(ii), the relevant assumptions are that (a) the relevant parent entity referred to in that subparagraph has income for the fiscal year that would be included in computing its income for the purposes of Part I of the Income Tax Act if it were a person resident in Canada; and (b) the person referred to in that subparagraph is resident in Canada for the purposes of the Income Tax Act . Definition of relevant parent entity (3) A relevant parent entity , of an MNE group for a fiscal year, means an entity that meets the following conditions: (a) the entity is located in (i) Canada, or (ii) another jurisdiction where it is subject to tax under a qualified IIR (referred to in this subsection as a “Pillar Two jurisdiction”); (b) the entity is neither (i) an excluded entity for the purposes of this Act, nor (ii) excluded from the application of the qualified IIR of the jurisdiction where it is located because of a provision in the law of that jurisdiction equivalent to subsection 13 (1); and (c) the entity is any of the following: (i) the ultimate parent entity of the MNE group for the year, (ii) a particular intermediate parent entity of the MNE group for the year, if (A) the ultimate parent entity of the MNE group is not located in Canada or a Pillar Two jurisdiction, and (B) no other intermediate parent entity of the MNE group that is located in Canada or a Pillar Two jurisdiction has, directly or indirectly, a controlling interest in the particular intermediate parent entity, (iii) a partially-owned parent entity of the MNE group for the year that is not wholly owned, directly or indirectly, by another partially-owned parent entity of the MNE group that is located in Canada or a Pillar Two jurisdiction. Top-up tax payable 15 (1) The amount of the tax a person must pay in respect of an MNE group for a fiscal year is equal to the total of all amounts, each of which is an amount determined by the formula A − B where A is the allocable share, of the top-up amount of a constituent entity of the MNE group that is not located in Canada for the fiscal year, of (a) the person, if subparagraph 14 (1)(b)(i) applies, or (b) the relevant parent entity referred to in subparagraph 14 (1)(b)(ii), if that subparagraph applies; and B is the total of all amounts each of which is a portion of the top-up amount of the constituent entity for the fiscal year that is included in both (a) the amount determined for A for the fiscal year, and (b) the allocable share, of the top-up amount of the constituent entity for the fiscal year, of a relevant parent entity of the MNE group through which the person referred to in paragraph (a), or the relevant parent entity referred to in paragraph (b), of the description of A indirectly holds an ownership interest in the constituent entity. Definition of allocable share (2) The allocable share , of the top-up amount of a constituent entity of an MNE group for a fiscal year, of a relevant parent entity, means the amount determined by the formula A × B where A is the top-up amount of the constituent entity for the fiscal year; and B is the relevant parent entity’s inclusion ratio for the constituent entity for the fiscal year. Definition of inclusion ratio (3) The inclusion ratio , of a relevant parent entity for a constituent entity of an MNE group for a fiscal year, means the ratio determined by the formula (A − B) ÷ A where A is the GloBE income of the constituent entity for the fiscal year; and B is the GloBE income of the constituent entity for the fiscal year that would be attributable to ownership interests other than ownership interests held directly or indirectly by the relevant parent entity, under the principles of the financial accounting standard applicable in preparing the consolidated financial statements of the ultimate parent entity of the MNE group for the fiscal year, if the net income of the constituent entity were equal to its GloBE income and on the assumption that (a) the relevant parent entity had prepared consolidated financial statements (referred to in this subsection as “hypothetical consolidated financial statements”) in accordance with that financial accounting standard, (b) the relevant parent entity had a controlling interest in the constituent entity such that all of the income and expenses of the constituent entity were consolidated on a line-by-line basis with those of the relevant parent entity in the hypothetical consolidated financial statements, (c) none of the GloBE income of the constituent entity were attributable to transactions with group entities of the MNE group, and (d) no ownership interests, other than those held directly or indirectly by the relevant parent entity, were held by any group entity of the MNE group. Flow-through and investment entities (4) For the purposes of subsection (3), if a constituent entity of an MNE group is a flow-through entity, an investment entity or an insurance investment entity, none of the GloBE income of the constituent entity is to be regarded as attributable to ownership interests held by any entity that is not included in the MNE group. Inclusion ratio — deemed GloBE income (5) For the purposes of subsection (3), if the net GloBE income of the MNE group for a jurisdiction for a fiscal year is nil, the GloBE income of a constituent entity of the MNE group that is located in the jurisdiction for the fiscal year is deemed to be the amount determined by the formula A + B where A is the amount determined by the formula C ÷ D where C is the allocated adjustment top-up amount of the constituent entity for the fiscal year, and D is the minimum rate; and B is the amount determined by the formula E ÷ D where E is the excess negative tax expense top-up amount of the constituent entity for the fiscal year. Division 2 Computation of GloBE Income or Loss GloBE Income or Loss Definition of GloBE income or loss 16 GloBE income or loss , of a constituent entity for a fiscal year, means the constituent entity’s financial accounting income for the year, adjusted according to the rules in this Division and Divisions 5 and 7. Subdivision A Determination of Financial Accounting Income Definition of financial accounting income 17 (1) Financial accounting income , for a constituent entity for a fiscal year, means, subject to subsections (2) to (6), (a) for a constituent entity other than a permanent establishment, the net income or loss determined for that constituent entity (i) in the preparation of the consolidated financial statements of the ultimate parent entity of the MNE group that includes the constituent entity, or (ii) under another acceptable financial accounting standard or authorized financial accounting standard, if (A) it is not reasonably practicable to determine the financial accounting income for the constituent entity based on the accounting standard used in the preparation of the consolidated financial statements of the ultimate parent entity, (B) the financial accounts of the constituent entity are maintained based on the other acceptable financial accounting standard or authorized financial accounting standard, (C) the information in those financial accounts is reliable, such that an auditor applying the generally accepted auditing standards of the jurisdiction in which the ultimate parent entity or constituent entity is located (or, in the case of a flow-through entity, the jurisdiction in which the entity was created) would reasonably conclude that the constituent entity has in place processes and controls that are likely to ensure that the information in the financial accounts is fair and accurate, and (D) that amount is adjusted to eliminate any permanent difference greater than €1 million that arises for the fiscal year because the other financial accounting standard is used instead of the financial accounting standard of the ultimate parent entity; and (b) for a constituent entity that is a permanent establishment, (i) if the permanent establishment is described in any of paragraphs (a) to (c) of the definition permanent establishment in subsection 2 (1), the amount that (A) is the net income or loss reflected in the separate financial accounts of the permanent establishment, if those financial accounts are prepared in accordance with an acceptable financial accounting standard or in accordance with an authorized financial accounting standard and subject to adjustments to prevent any material competitive distortions, or (B) if the permanent establishment does not have separate financial accounts described in clause (A), would be the net income or loss of that permanent establishment reflected in separate financial accounts prepared on a stand-alone basis in accordance with the accounting standard used in the preparation of the ultimate parent entity’s consolidated financial statements, and (ii) if the constituent entity is a permanent establishment described in paragraph (d) of the definition permanent establishment in subsection 2 (1), the net income or loss determined on the assumption that (A) the only income of the permanent establishment is its income that is exempted from tax in the jurisdiction where the main entity in respect of the permanent establishment is located and that is attributable to activities carried on outside the jurisdiction in which the main entity is located, and (B) the only expenses of the permanent establishment are its expenses that are attributable to the activities described in clause (A) and are not deducted for tax purposes in the jurisdiction in which the main entity is located. Permanent establishments — adjustment (2) The amount that would, in the absence of this subsection, be a permanent establishment’s financial accounting income is adjusted to reflect only the amounts of income and expense that are — or, if paragraph (c) applies, would be — attributable to the permanent establishment (regardless of whether such amount is subject to tax or deductible, as the case may be, in the jurisdiction in which the permanent establishment is located) in accordance with (a) if paragraph (a) of the definition permanent establishment in subsection 2 (1) applies, the tax treaty applicable to the permanent establishment; (b) if paragraph (b) of that definition applies, the law of the jurisdiction in which the permanent establishment is located; or (c) if paragraph (c) of that definition applies, Article 7 of the OECD Model Tax Convention. Permanent establishments — general rule (3) Except as provided by subsection 18 (26), the net income or loss of a permanent establishment (other than any portion of that amount that is excluded from the financial accounting income of the permanent establishment because of subsection (2)) is not to be taken into account in determining the GloBE income or loss of the main entity in respect of the permanent establishment. No consolidation adjustments (4) The financial accounting income of a constituent entity is to include income, expenses, gains and losses (other than amounts excluded from GloBE income or loss because of subsection (5)) arising from transactions between the constituent entity and any other group entity, other than any transactions to which an election under subsection 18 (24) applies. Profit and loss statement — general rule (5) Unless otherwise required under this Act, no amount is included in computing the GloBE income or loss of a constituent entity if it is recognized outside of the profit and loss statement of the constituent entity’s financial statements. Financial accounting income — flow-through entity (6) If a constituent entity is a particular flow-through entity, the following rules apply in determining the financial accounting income for a fiscal year of the particular flow-through entity and any other group entities in respect of the net income or loss of the particular flow-through entity: (a) amounts in respect of the particular flow-through entity’s net income or loss that are attributable to ownership interests of persons or entities that are not group entities and that hold their ownership interests in the particular flow-through entity directly, or through a tax transparent structure, are not to be included in computing the financial accounting income of any group entity, unless (i) the particular flow-through entity is an ultimate parent entity, or (ii) the particular flow-through entity is owned, directly or through a tax transparent structure, by an ultimate parent entity that is also a flow-through entity, in which case this paragraph does not apply to amounts in respect of the particular flow-through entity’s net income or loss to the extent those amounts are attributable to persons or entities that hold their ownership interests in the particular flow-through entity through that ultimate parent entity; (b) if a particular group entity has an ownership interest in the particular flow-through entity, an amount that, in the absence of this paragraph — and, for greater certainty, after excluding amounts to which paragraph (a) applies and amounts allocated to a permanent establishment in accordance with paragraph (1)(b) — would be included in the financial accounting income of the particular flow-through entity is excluded from its financial accounting income and included in the financial accounting income of the particular group entity in accordance with the particular group entity’s ownership interest (determined having regard only to ownership interests held by group entities) in the particular flow-through entity, to the extent that (i) the particular flow-through entity is not an ultimate parent entity, (ii) the particular flow-through entity is fiscally transparent in relation to the particular group entity, (iii) the particular group entity is not a flow-through entity, other than a reverse hybrid entity or an ultimate parent entity, and (iv) the particular group entity holds its ownership interest in the particular flow-through entity (A) directly, or (B) indirectly, through one or more entities (each referred to in this clause as an “intermediate owner”), if (I) each intermediate owner is fiscally transparent in relation to the particular group entity, (II) where the particular group entity is not a flow-through entity or is a flow-through entity that is an ultimate parent entity, there is no intermediate owner that both 1 is not a flow-through entity, and 2 would meet the conditions in this subparagraph and subparagraph (ii) if the references in those subparagraphs to the “particular group entity” were read as references to that intermediate owner, and (III) where the particular group entity is a reverse hybrid entity, there is no intermediate owner that would meet the conditions in this subparagraph and subparagraphs (ii) and (iii) if the references in those subparagraphs to the “particular group entity” were read as references to that intermediate owner; (c) despite paragraph (b), if an amount of the net income or loss of the particular flow-through entity would, in the absence of this paragraph, be included under paragraph (b) in the financial accounting income of a particular group entity (referred to in this paragraph as the “lower-tier entity”) that is a reverse hybrid entity, and would also be included in the financial accounting income of another group entity (referred to in this paragraph as the “upper-tier entity”), that is not a flow-through entity or that is a flow-through entity that is an ultimate parent entity, in relation to an ownership interest the upper-tier entity holds in the particular flow-through entity through the lower-tier entity, the amount is (i) included in the financial accounting income of the upper-tier entity, and (ii) not included in the financial accounting income of the lower-tier entity; and (d) any amount of the net income or loss of the particular flow-through entity that is not excluded in computing its financial accounting income because of paragraph (a) or (b), or subsection (3), is included in the financial accounting income of the particular flow-through entity. Flow-through entity — ownership interests (7) For the purpose of determining an entity’s financial accounting income under subsection (6), a reference to an ownership interest refers only to an ownership interest that carries rights to profit. Subdivision B Adjustments in Computing GloBE Income or Loss Net tax expense 18 (1) An amount is included or excluded, as the case may be, in computing GloBE income or loss of a constituent entity for a fiscal year in order to reverse any debits or credits in the constituent entity’s financial accounting income in respect of (a) covered taxes (including, for greater certainty, any covered tax in respect of income that is excluded from the computation of GloBE income or loss); (b) to the extent it is not included in paragraph (a), any deferred tax asset attributable to a loss for the fiscal year; (c) any tax under an IIR or UTPR; (d) any tax under a qualified domestic minimum top-up tax; (e) any tax paid or accrued by an insurance company in respect of returns to policyholders; or (f) any disqualified refundable imputation tax. Purchase price accounting adjustments (2) GloBE income or loss, of a constituent entity for a fiscal year, excludes amounts in respect of any purchase price accounting adjustment reflected in the consolidated financial statements of the ultimate parent entity or the constituent entity’s financial accounts, arising as a result of an entity becoming a group entity because of the acquisition of ownership interests in that entity by an existing group entity, unless (a) the acquisition occurs before December 1, 2021; and (b) it is not reasonably practicable to determine the constituent entity’s financial accounting income in the absence of the adjustment. Excluded dividends (3) In computing the GloBE income or loss, of a constituent entity for a fiscal year, the following rules apply in respect of excluded dividends: (a) the constituent entity’s GloBE income or loss for the fiscal year excludes any excluded dividends received or accrued by the constituent entity in the fiscal year; and (b) if the filing constituent entity elects in respect of the constituent entity for a fiscal year, (i) for the purposes of this subsection and the definition excluded dividends in subsection 2 (1), all portfolio holdings of the constituent entity are deemed to be short-term portfolio holdings, and (ii) the election is a five-year election. Excluded equity gains and losses (4) In computing the GloBE income or loss of a constituent entity for a fiscal year, the constituent entity’s GloBE income or loss excludes any excluded equity gain or loss of the constituent entity for the fiscal year. Insurance reserves (5) If a constituent entity is an insurance company, any expense in respect of the movement of insurance reserves of the entity is excluded in computing that entity’s GloBE income or loss for the fiscal year to the extent that the movement is economically matched by (a) excluded dividends, net of any investment management fees, from a security held on behalf of a policyholder; or (b) excluded equity gains or losses from a security held on behalf of a policyholder. Hedging currency risk — election (6) If the filing constituent entity elects, in respect of a particular constituent entity for a fiscal year, the following rules apply: (a) any amount, in respect of a foreign exchange gain or loss, that is included in the particular constituent entity’s financial accounting income for a fiscal year is deemed to be an excluded equity gain or loss of the particular constituent entity for the year, to the extent that (i) the gain or loss is (A) in respect of a hedging instrument that hedges currency risk in respect of ownership interests (other than portfolio holdings) held by the particular constituent entity or another group entity, and (B) recognized in other comprehensive income in the consolidated financial statements, (ii) the hedging instrument is an effective hedge under the authorized financial accounting standard used in the preparation of the consolidated financial statements, and (iii) the economic and accounting effect of the hedging instrument (A) has not been transferred to another entity, if the particular constituent entity holds the hedging instrument, or (B) has been transferred to the particular constituent entity, if the particular constituent entity does not hold the hedging instrument; and (b) the election is a five-year election. Equity gain or loss inclusion — election (7) If the filing constituent entity elects, in respect of the group entities of the MNE group that are located in a jurisdiction, to include excluded equity gains or losses in computing GloBE income or loss for a fiscal year, the following rules apply: (a) despite subsection (4), the GloBE income or loss of a group entity that is located in the jurisdiction includes an excluded equity gain or loss of the entity for the fiscal year to the extent that (i) all of the following conditions are met: (A) the gain or loss is subject to covered taxes (as a taxable gain or allowable loss) in the jurisdiction, (B) the tax consequences of the taxable gain or allowable loss are reflected in the income tax expense in the group entity’s financial accounts, (C) in the case of a gain from a disposition of an ownership interest, the gain is not excluded, reduced, offset or otherwise effectively sheltered from tax under local law by reason of any exemption, exclusion, deduction, credit or other form of relief specific to the type of gain, (ii) in the case of a gain or loss described in paragraph (a) of the definition excluded equity gain or loss in subsection 2 (1) that is not subject to covered taxes in the jurisdiction, (A) gains or losses on the disposition of the ownership interest are subject to covered taxes in the jurisdiction, and (B) the income tax expense in the group entity’s financial accounts includes deferred tax expense in respect of the changes in fair value or impairments, and (iii) the gain or loss is in respect of an ownership interest that is not a qualified flow-through ownership interest (as defined in subsection 28 (1)); (b) the election is a five-year election; and (c) if the election is revoked, the revocation is not effective in respect of a particular ownership interest where a loss in respect of that particular ownership interest is included in computing a group entity’s GloBE income or loss because of this subsection. Included revaluation method gain or loss (8) GloBE income or loss, of a constituent entity for a fiscal year, includes any included revaluation method gain or loss of the constituent entity for the fiscal year. Asymmetric foreign currency gains and losses (9) If a constituent entity’s accounting functional currency is different from its tax functional currency, the constituent entity’s GloBE income or loss for a fiscal year (a) includes a particular amount of gain or loss to the extent that (i) the particular amount is (A) attributable to fluctuations in the exchange rate between the accounting functional currency and tax functional currency, (B) included in the computation of the constituent entity’s income for tax purposes, and (C) not included in the constituent entity’s financial accounting income, or (ii) the particular amount is (A) attributable to fluctuations in the exchange rate between the tax functional currency and another currency that is not the accounting functional currency, and (B) not included in the constituent entity’s financial accounting income (whether or not the particular amount is included in the constituent entity’s income for tax purposes); and (b) excludes a particular amount of gain or loss to the extent that (i) the particular amount is (A) attributable to fluctuations in the exchange rate between the accounting functional currency and tax functional currency, (B) included in the constituent entity’s financial accounting income, and (C) not included in the computation of the constituent entity’s income for tax purposes, or (ii) the particular amount is (A) attributable to fluctuations in the exchange rate between the accounting functional currency and another currency that is not the tax functional currency, (B) included in the constituent entity’s financial accounting income, and (C) not included in the computation of the constituent entity’s income for tax purposes. Policy disallowed expenses (10) GloBE income or loss, of a constituent entity for a fiscal year, excludes (a) expenses recorded by the constituent entity for illegal payments, including bribes and kickbacks; (b) an expense recorded by the constituent entity for a fine or penalty equal to or greater than €50,000; and (c) expenses recorded by the constituent entity for fines or penalties, the total of which amounts is equal to or greater than €50,000, if the fines or penalties are in respect of the same conduct, or for continuing conduct. Prior period errors and changes in accounting principles (11) If there has been a change in the opening equity of a constituent entity at the start of a fiscal year, the constituent entity’s GloBE income or loss for the fiscal year includes the amount of that change if the change is attributable to (a) a correction of an error in the accounts for a previous fiscal year that affected the income or expenses included in the computation of GloBE income or loss for that year, except to the extent the correction of that error resulted in a material decrease in a liability for covered taxes subject to paragraph 27 (1)(b); or (b) a change in accounting principle or policy that affects income or expenses included in the computation of GloBE income or loss. Pension expense (12) GloBE income or loss, of a constituent entity for a fiscal year, includes the positive or negative amount determined by the formula (A + B) × (−1) where A is (a) the amount, expressed as a negative number, that is recorded in the constituent entity’s financial accounting income for the fiscal year as pension liability expense in respect of a pension fund, or (b) the amount that is recorded in the constituent entity’s financial accounting income for the fiscal year as income in respect of a pension fund; and B is the amount of pension contributions made by the constituent entity to the pension fund in the fiscal year. Arm’s length requirement — certain transactions (13) GloBE income or loss of a particular constituent entity of an MNE group for a fiscal year is to be adjusted to ensure that a transaction is reflected in accordance with the arm’s length principle if (a) the particular constituent entity is party to the transaction with another constituent entity of the MNE group that is located in the same jurisdiction; (b) either (i) the recorded value of the transaction is not the same in each of the constituent entities’ financial accounts, or (ii) the transaction is not recorded, in the particular constituent entity’s financial accounts, in accordance with the arm’s length principle; and (c) where subparagraph (b)(ii) applies, any of the following conditions is met: (i) only one of the constituent entities is a minority-owned constituent entity, (ii) only one of the constituent entities is an investment entity or insurance investment entity, (iii) the transaction is a sale or other transfer of an asset that results in a loss that is included in computing the GloBE income or loss of one of the constituent entities for the fiscal year. Arm’s length requirement — accounting and tax (14) If a transaction between two or more constituent entities of an MNE group (referred to in this subsection as the “counterparties”) that are not located in the same jurisdiction is not recorded in the same amount, not recorded in accordance with the arm’s length principle or not recorded at all in the financial accounts of the counterparties for a fiscal year (a) the GloBE income or loss of each of the counterparties is to be adjusted to reflect the amount determined in respect of the transaction in computing the counterparties’ incomes for tax purposes, if (i) as a result of transfer pricing adjustments, a difference between the treatment of an amount for tax purposes and for accounting purposes that is not eliminated over time and does not give rise to deferred tax (referred to in this subsection as a “permanent difference”) arises for each counterparty in respect of the transaction, and (ii) the permanent difference for each counterparty corresponds to the permanent difference for the other counterparty; or (b) the GloBE income or loss of each of the counterparties is to be adjusted to reflect the amount determined, as a result of a transfer pricing adjustment, in respect of the transaction in computing the income for tax purposes of one of the counterparties (referred to in this paragraph as the “high-tax entity”), if (i) as a result of the transfer pricing adjustment, a permanent difference arises for the high-tax entity in respect of the transaction but does not arise for the other counterparty, and (ii) the following conditions are met: (A) the nominal tax rate that applies to the high-tax entity equals or exceeds the minimum rate, and (B) the effective tax rate of the MNE group for the jurisdiction equals or exceeds the minimum rate in at least one of the two fiscal years immediately preceding the fiscal year. Qualified refundable tax credits (15) In computing the GloBE income or loss of a constituent entity for a fiscal year, a qualified refundable tax credit is treated as income as follows: (a) if the tax credit is related to the acquisition or construction of assets and the originator has an accounting policy of reducing the carrying value of its assets in respect of such tax credits or recognizing the tax credit as deferred income, the originator must follow the accounting policy; and (b) in any other case, the face value of the tax credit is treated as income in the fiscal year in which the entitlement under the tax credit accrues. Marketable transferable tax credits (16) In computing the GloBE income or loss of a constituent entity for a fiscal year, (a) if the constituent entity is an originator of a marketable transferable tax credit, the face value of the tax credit is treated as income in the origination year, subject to the following rules: (i) if the tax credit is transferred within 15 months of the end of the origination year, the purchase price (and not the face value) of the tax credit is treated as income in the origination year, (ii) if the tax credit is related to the acquisition or construction of assets and the originator has an accounting policy of reducing the carrying value of its assets in respect of such tax credits, or recognizing the tax credit as deferred income, the originator must follow this same accounting policy, (iii) if the tax credit is transferred more than 15 months after the end of the origination year, (A) if the tax credit is described in subparagraph (ii), the amount by which the face value of the tax credit that was included in GloBE income or loss under that subparagraph exceeds the purchase price of the tax credit is treated as a loss on a pro rata basis over the remaining productive life of the asset, and (B) in any other case, the amount by which the face value of the tax credit that was included in GloBE income or loss in the origination year exceeds the purchase price of the tax credit is treated as a loss in the fiscal year of the transfer, and (iv) if all or a portion of the tax credit expires without use, the face value attributable to the expired portion of the tax credit is treated as a loss or increase to the carrying value of the asset, as the case may be, in the fiscal year of the expiration; and (b) if the constituent entity is an unrelated purchaser of a marketable transferable tax credit, the following rules apply: (i) if all or a portion of the tax credit is used by the unrelated purchaser to satisfy its liability for a covered tax, the amount by which the face value of the tax credit exceeds the purchase price is treated as income in the fiscal year in which, and in the proportion to which, the amount of the tax credit is used by the unrelated purchaser to satisfy its liability for a covered tax, (ii) if the tax credit is transferred by the unrelated purchaser to another unrelated purchaser, the total of the sale price and any amount of the credit that has been used, minus the total of the purchase price and any gain recognized from use of the tax credit under subparagraph (i), is treated as income or loss, as the case may be, of the unrelated purchaser in the fiscal year of the transfer, and (iii) if the tax credit expires without use, the amount by which the total of the purchase price and any gain recognized from use of the tax credit under subparagraph (i) exceeds the amount of the tax credit used is treated as a loss in the fiscal year of the expiration. Other tax credits (17) In computing the GloBE income or loss of a constituent entity for a fiscal year, the face value of a tax credit (other than a qualified refundable tax credit or a marketable transferable tax credit) is not treated as income. Anti-avoidance — intragroup financing arrangements (18) GloBE income or loss of a constituent entity that is a low-tax entity for a fiscal year excludes any expense that is attributable to an intragroup financing arrangement that can reasonably be expected, over the duration of the arrangement, (a) to increase the amount of expenses taken into account in computing the GloBE income or loss of the low-tax entity; and (b) not to result in a corresponding increase in the income for tax purposes of a high-tax counterparty for the fiscal year, including because an amount received or receivable in respect of the arrangement by the high-tax counterparty can reasonably be considered to be eligible for an exclusion, exemption, deduction, credit or other tax benefit under local law where the amount of that benefit is calculated by reference to the amount of payment received. Insurance companies (19) If a constituent entity is an insurance company, the constituent entity’s GloBE income or loss for a fiscal year (a) excludes any amount that is (i) included in the constituent entity’s financial accounting income for the fiscal year, and (ii) in respect of a charge to policyholders for taxes paid by the constituent entity in respect of returns to the policyholders, to the extent an amount is included in computing the constituent entity’s GloBE income or loss under paragraph (1)(e); and (b) includes returns to policyholders that are not reflected in the constituent entity’s financial accounting income for the fiscal year, to the extent that a corresponding increase or decrease in liability to policyholders is reflected in its financial accounting income. Qualifying tier one capital (20) In computing the GloBE income or loss of a constituent entity for a fiscal year, (a) if an amount is recognized as a decrease to the equity of the constituent entity attributable to a distribution paid or payable in respect of qualifying tier one capital issued by the constituent entity, the amount is treated as an expense; and (b) if an amount is recognized as an increase to the equity of the constituent entity attributable to distributions received or receivable in respect of qualifying tier one capital held by the constituent entity, the amount is treated as income. Stock-based compensation expense — election (21) If a filing constituent entity elects under this subsection, in respect of the costs or expenses of the group entities that are located in a jurisdiction that were paid with stock-based compensation (each referred to in this subsection as a “stock-based compensation expense”), the following rules apply: (a) the election is a five-year election; (b) in computing the GloBE income or loss of each group entity that is located in that jurisdiction for a fiscal year to which the election applies, the amount allowed as a deduction in respect of any stock-based compensation expense in computing that entity’s income for tax purposes under the law of that jurisdiction for a local taxation year ending in the fiscal year is to be substituted for the amount of that stock-based compensation expense reflected as an expense in that entity’s financial accounting income for that fiscal year; (c) in computing the GloBE income or loss of each group entity that is located in that jurisdiction for any fiscal year to which the election applies, the group entity is to include as income an amount equal to the total of all amounts, each of which is a stock-based compensation expense that (i) arose in respect of an option that expires without exercise in the fiscal year, and (ii) was allowed as an expense in computing the GloBE income or loss of the group entity in accordance with the election for a prior fiscal year; (d) if the election applies with respect to stock-based compensation expenses arising from a transaction, and any amount in respect of the stock-based compensation expenses arising from that transaction was reflected in the financial accounting income of a group entity for a fiscal year preceding the first fiscal year to which the election applies, in computing GloBE income or loss of that group entity for that first fiscal year, the amount determined by the following formula is to be included as income: A − B where A is the total of all amounts, each of which is an amount in respect of stock-based compensation expenses arising from that transaction that was allowed as an expense in computing the group entity’s GloBE income or loss for a fiscal year preceding the first fiscal year, and B is the total of all amounts, each of which is the amount in respect of those stock-based compensation expenses that would have been allowed as an expense in computing the GloBE income or loss of the group entity for a fiscal year preceding the first fiscal year, if the election had applied to that preceding fiscal year; and (e) if the election is revoked, and any options in respect of any stock-based compensation to which the election applied have not been exercised — and the exercise period has not yet ended — before the revocation year, in computing GloBE income or loss of a group entity that is located in the jurisdiction for the revocation year, the amount determined by the following formula is to be included as income: A − B where A is the total of all amounts, each of which is an amount in respect of that stock-based compensation expense allowed as an expense in computing the GloBE income or loss of the group entity in accordance with the election for a fiscal year preceding the revocation year, and B is the total of all amounts, each of which is the amount in respect of that stock-based compensation that accrued as an expense in the group entity’s financial accounts, and would have been allowed as an expense in computing the group entity’s GloBE income or loss if the election had not applied, for a fiscal year preceding the revocation year. Fair value and impairment accounting — election (22) If a filing constituent entity elects under this subsection, in respect of a jurisdiction, to determine gains and losses using the realization principle for the purpose of computing GloBE income or loss for a fiscal year, the following rules apply: (a) the election is a five-year election; (b) the election applies to (i) all entities that are (A) if the filing constituent entity specifies in the election that it is to apply only to investment entities, group entities that are investment entities that are located in the jurisdiction, and (B) in any other case, group entities that are located in the jurisdiction, and (ii) all assets and, if clause (B) applies, all liabilities that are (A) if the filing constituent entity specifies in the election that it is to apply only to tangible assets, tangible assets subject to fair value accounting or impairment accounting, and (B) in any other case, assets and liabilities subject to fair value accounting or impairment accounting; (c) if the election applies to a constituent entity for a fiscal year, (i) gains or losses attributable to fair value or impairment accounting with respect to assets or liabilities to which the election applies are excluded in computing GloBE income or loss of the constituent entity for the fiscal year, and (ii) for the purpose of determining a gain or loss in respect of an asset or liability that is subject to the election, the carrying value of the asset or liability is its carrying value at the later of (A) the beginning of the first fiscal year to which the election applies, and (B) the date on which the asset was acquired or the liability was incurred; and (d) if the election is revoked and a constituent entity to which the election applied holds an asset or liability to which the election applied at the beginning of the revocation year, the constituent entity’s GloBE income or loss for the revocation year includes the positive or negative amount determined by the formula A − B where A is the fair value of the asset or liability at the beginning of the revocation year, and B is the carrying value of the asset or liability as determined under subparagraph (c)(ii). Aggregate asset gain — election (23) If the filing constituent entity elects under this subsection in respect of the aggregate asset gain for a fiscal year (referred to in this subsection as the “election year”) of the constituent entities of the MNE group that are located in a particular jurisdiction (each referred to in this subsection as a “local entity”), the following rules apply: (a) covered taxes with respect to any net asset gain or net asset loss of a local entity in the election year are to be excluded in computing adjusted covered taxes; (b) GloBE income or loss of local entities for the election year (i) excludes any amounts allocated to local entities under paragraph (d) or (e) (other than any amount allocated to the election year under paragraph (e)), and (ii) includes any amounts allocated to the election year under paragraph (e); (c) for the purposes of subsection 31 (1), GloBE income or loss, of a local entity for a fiscal year, is adjusted as follows: (i) an amount allocated to a local entity under paragraph (d) for a fiscal year reduces the entity’s net asset loss for that year, and (ii) an amount allocated to a local entity under paragraph (e) for a fiscal year is included as income for that year; (d) amounts in respect of the aggregate asset gain are carried back to loss years within the look-back period, in order from the earliest loss year to the latest loss year, and allocated to the local entities for those loss years, with the amount allocated to any particular local entity for any particular loss year being determined by the formula A × B ÷ C where A is the lesser of (i) the aggregate asset loss of local entities for the particular loss year, less the total of the amounts, if any, already allocated to those entities for that particular year under this paragraph because of a previous election under this subsection, and (ii) the aggregate asset gain, less the total of the amounts, if any, allocated in respect of that gain under this paragraph to local entities for a preceding loss year, B is the particular local entity’s net asset loss for the particular loss year, and C is the total of all amounts, each of which is the net asset loss of a local entity for the particular loss year; and (e) if any amount of the aggregate asset gain remains after reducing it by the total of the amounts in respect of the aggregate asset gain allocated to local entities under paragraph (d), that remainder is allocated evenly to each fiscal year in the look-back period (each referred to in this paragraph as a “look-back year”), with the amount that is allocated to a particular local entity for a particular look-back year being determined by the formula A ÷ 5 × B ÷ C where A is the aggregate asset gain, less the total of the amounts in respect of that aggregate asset gain allocated to local entities under paragraph (d), B is (i) if no local entity has a net asset gain for the particular look-back year, 1, and (ii) in any other case, the particular local entity’s net asset gain for the particular look-back year, and C is (i) if subparagraph (i) of the description of B applies, the total number of local entities for the particular look-back year, and (ii) if subparagraph (ii) of the description of B applies, the total of all amounts, each of which is the net asset gain of a local entity for the particular look-back year. Tax consolidated group — election (24) If a filing constituent entity elects under this subsection in respect of the standard constituent entities of an MNE group that are located in a particular jurisdiction and included in a tax consolidated group (each referred to in this subsection as a “relevant local entity”), the following rules apply: (a) the financial accounting income of the relevant local entities is adjusted for a fiscal year for which the election has effect by applying the consolidated accounting treatment of the ultimate parent entity to eliminate income, expenses, gains and losses arising from transactions between relevant local entities; (b) the election is a five-year election; (c) the financial accounting income of the relevant local entities is to be adjusted for the first fiscal year for which the election has effect to ensure that there are no duplications or omissions of items of income, expenses, gains or losses arising as a result of electing under this subsection; (d) if an election under this subsection is revoked, the financial accounting income of relevant local entities is to be adjusted for the revocation year to ensure that there are no duplications or omissions of items of income, expenses, gains or losses arising as a result of the revocation; and (e) for the purposes of this subsection, relevant local entities that are located in a jurisdiction are considered to be included in a tax consolidated group if, under the law of that jurisdiction, the income, expenses, gains or losses of those group entities may be shared for tax purposes by virtue of a connection between the entities based on ownership or common control. Qualified debt release — election (25) If a filing constituent entity elects under this subsection for a fiscal year in respect of a constituent entity, the constituent entity’s GloBE income or loss excludes any qualified debt release amounts of the entity for the year. Permanent establishments — losses (26) Despite subsection 17 (3), if a constituent entity that is a permanent establishment would, in the absence of this subsection, have a GloBE loss (referred to in this subsection as the “loss amount”) for a fiscal year (a) that loss amount is to be treated as an expense of the main entity in respect of the permanent establishment (and not of the permanent establishment) in computing its GloBE income or loss for the fiscal year, to the extent that the loss amount (i) is treated as an expense for the purposes of the computation of tax in the jurisdiction in which the main entity is located, and (ii) is not set off against an item of income that is subject to tax under the laws of both the jurisdiction of the permanent establishment and of the main entity; and (b) if the permanent establishment would, in the absence of this subsection, have GloBE income (referred to in this paragraph as the “income amount”) for a subsequent fiscal year, that income amount is treated as GloBE income of the main entity (and not of the permanent establishment) to the extent of the lesser of (i) the income amount of the permanent establishment for the subsequent fiscal year, and (ii) the amount, if any, by which the loss amount described in paragraph (a) exceeds the total of all amounts, each of which is, in respect of that loss amount, an amount that was treated as GloBE income of the main entity (and not of the permanent establishment) in a prior fiscal year under this paragraph. Subdivision C International Shipping Net Income or Loss Exclusion Exclusion of international shipping net income or loss 19 (1) In computing a constituent entity’s GloBE income or loss for a fiscal year, the constituent entity’s net income or loss from international shipping for that fiscal year is excluded. Definition of net income or loss from international shipping (2) Net income or loss from international shipping , of a constituent entity for a fiscal year, means the amount determined by the formula A + B where A is the constituent entity’s core international shipping income for the fiscal year; and B is the constituent entity’s qualified ancillary international shipping income for the fiscal year. Definition of core international shipping income (3) Core international shipping income , of a constituent entity for a fiscal year, means the amount determined by the formula A − B where A is the constituent entity’s core international shipping revenue for the fiscal year; and B is the constituent entity’s core international shipping costs for the fiscal year. Definition of core international shipping revenue (4) Core international shipping revenue , of a constituent entity for a fiscal year, means the constituent entity’s revenue for the fiscal year obtained in consideration for the entity’s performance of core international shipping activities. Definition of core international shipping costs (5) Core international shipping costs , of a constituent entity for a fiscal year, means the amount determined by the formula A + (B × C ÷ D) where A is the total costs incurred by the constituent entity for the fiscal year that are directly attributable to the entity’s performance of core international shipping activities; B is the total costs incurred by the constituent entity for the fiscal year that are indirectly attributable to the entity’s performance of core international shipping activities; C is the constituent entity’s core international shipping revenue for the fiscal year; and D is the constituent entity’s total revenue for the fiscal year from all sources. Definition of core international shipping activity (6) Core international shipping activity means an activity, if (a) the strategic or commercial management of the performance of that activity by the constituent entity is effectively carried on within the jurisdiction in which the constituent entity is located; and (b) the activity is any of the following: (i) international shipping, whether the ship is owned, leased or otherwise at the disposal of the constituent entity, (ii) arranging for another person to carry out international shipping under a slot-chartering arrangement, (iii) leasing a ship to be used for international shipping on charter fully equipped, crewed and supplied, (iv) leasing a ship to be used for international shipping on a bareboat charter basis to another constituent entity of the MNE group, (v) the participation in a pool, joint business or international operating agency for international shipping, (vi) the sale of a ship used for international shipping, provided that the ship has been held for use by the constituent entity for at least one year. Definition of qualified ancillary international shipping income (7) Qualified ancillary international shipping income , of a constituent entity that is located in a jurisdiction for a fiscal year, means (a) the constituent entity’s ancillary international shipping income, if A ≤ B ÷ 2 where A is the total of all amounts, each of which is the ancillary international shipping income of a group entity that is located in the jurisdiction for the fiscal year, and B is the total of all amounts, each of which is the core international shipping income of a group entity that is located in the jurisdiction for the fiscal year; or (b) in any other case, the amount determined by the formula B ÷ 2 × C ÷ A where C is the constituent entity’s ancillary international shipping income for the fiscal year. Definition of ancillary international shipping income (8) Ancillary international shipping income , of a constituent entity for a fiscal year, means the amount determined by the formula A − B where A is the constituent entity’s ancillary international shipping revenue for the fiscal year; and B is the constituent entity’s ancillary international shipping costs for the fiscal year. Definition of ancillary international shipping revenue (9) Ancillary international shipping revenue , of a constituent entity for a fiscal year, means the constituent entity’s revenue for the fiscal year obtained in consideration for the entity’s performance of ancillary international shipping activities. Definition of ancillary international shipping costs (10) Ancillary international shipping costs , of a constituent entity for a fiscal year, means the amount determined by the formula A + (B × C ÷ D) where A is the total costs incurred by the constituent entity for the fiscal year that are directly attributable to the entity’s performance of ancillary international shipping activities; B is the total costs incurred by the constituent entity for the fiscal year that are indirectly attributable to the entity’s performance of ancillary international shipping activities; C is the constituent entity’s ancillary international shipping revenue for the fiscal year; and D is the constituent entity’s total revenue for the fiscal year from all sources. Definition of ancillary international shipping activity (11) Ancillary international shipping activity means an activity, if (a) the strategic or commercial management of the performance of that activity by the constituent entity is effectively carried on within the jurisdiction in which the constituent entity is located; (b) the activity is performed primarily in connection with international shipping; and (c) the activity is any of the following: (i) leasing a ship on a bareboat charter basis to another shipping enterprise, other than another constituent entity of the MNE group, if (A) the lease has not been in effect for a period exceeding three years, and (B) it is established by subsequent events or otherwise that the lease is not part of a series of leases, or of leases and other transactions, that results in the leases being in effect for an aggregate period exceeding three years, (ii) selling tickets for the transportation of passengers or cargo by ship between ports in a single jurisdiction, if (A) the transportation is carried out by a shipping enterprise other than the constituent entity or another constituent entity of the MNE group, and (B) the ship proceeds to, or has come from, a port in a different jurisdiction, (iii) leasing and short-term storage of a container, or detention charges for the late return of a container, (iv) the provision of services by engineers, maintenance staff, cargo handlers, catering staff or customer services personnel to another shipping enterprise, other than another constituent entity of the MNE group, engaged in international shipping, (v) holding assets necessary for the constituent entity to carry on the business of international shipping. Subdivision D Ultimate Parent Entities Subject to Tax Transparency or Deductible Dividend Regimes GloBE income — flow-through ultimate parent entity 20 (1) The GloBE income, for a fiscal year, of an ultimate parent entity that is a flow-through entity excludes any amount that would, in the absence of this subsection, be included in computing the entity’s GloBE income or loss for the fiscal year and that is attributable to an ownership interest in the entity (referred to in this subsection as the “attributable amount”), if (a) one of the following conditions is met: (i) the holder of the ownership interest is subject to tax, for a taxable period ending within 12 months of the end of the fiscal year, on the full attributable amount at a nominal rate that is equal to, or exceeds, the minimum rate, or (ii) it can reasonably be expected that (A + B) ≥ C × D where A is the amount that would, in the absence of this subsection and paragraph 22 (4)(a), be adjusted covered taxes payable by the ultimate parent entity in respect of the attributable amount for the fiscal year, B is the tax payable by the holder in respect of the attributable amount for a taxable period ending within 12 months of the end of the fiscal year, C is the attributable amount, and D is the minimum rate; (b) the holder is a natural person who (i) is tax resident in the jurisdiction where the ultimate parent entity is located, and (ii) does not hold ownership interests that in the aggregate entitle the holder to more than 5% of the profits or assets of the ultimate parent entity; or (c) the holder is a governmental entity, international organization, non-profit organization or pension fund that (i) is resident in the jurisdiction where the ultimate parent entity is located, and (ii) does not hold ownership interests that in the aggregate entitle the holder to more than 5% of the profits or assets of the ultimate parent entity. Resident — interpretation (2) For the purposes of subparagraph (1)(c)(i) and paragraph 21 (1)(c), (a) an entity (other than a governmental entity) is resident in the jurisdiction where it is created and managed; and (b) a governmental entity is resident in the jurisdiction of the government of which it is a part or that owns it. GloBE loss — flow-through ultimate parent entity (3) The GloBE loss, for a fiscal year, of an ultimate parent entity that is a flow-through entity is the amount determined by the formula A − B where A is the amount that would, in the absence of this subsection, be the ultimate parent entity’s GloBE loss for the year; and B is the portion of the loss amount referred to in the description of A that is attributable to an ownership interest in the entity, to the extent the holder of the ownership interest is allowed to use its share of the loss in computing the holder’s income for tax purposes. Permanent establishment — flow-through ultimate parent entity (4) Subsections (1) to (3) apply to a permanent establishment in the same manner as they apply to an ultimate parent entity that is a flow-through entity, if (a) the ultimate parent entity carries on its business, in whole or in part, through the permanent establishment; or (b) the following conditions are met: (i) a flow-through entity carries on its business, in whole or in part, through the permanent establishment, and (ii) the ultimate parent entity holds its interest in the flow-through entity directly or through a tax transparent structure. GloBE income — deductible dividend regime 21 (1) The GloBE income, for a fiscal year, of an ultimate parent entity that is subject to a deductible dividend regime and distributes a deductible dividend within 12 months of the end of the fiscal year excludes the amount of the dividend (except to the extent its exclusion would result in a GloBE loss for the year), if (a) one of the following conditions is met: (i) the dividend recipient is subject to tax, for a taxable period that ends within 12 months of the end of the fiscal year, on the full amount of the dividend at a nominal rate that is equal to, or exceeds, the minimum rate, (ii) it can reasonably be expected that (A + B) ≥ C × D where A is the amount that would, in the absence of this subsection and paragraph 22 (4)(b), be adjusted covered taxes payable by the ultimate parent entity in respect of the dividend or the profits out of which the dividend is paid, B is the tax payable in respect of the dividend by the dividend recipient for a taxable period ending within 12 months of the end of the fiscal year, C is the amount of the dividend, and D is the minimum rate, or (iii) it is the case that (A) the dividend recipient is a natural person, (B) the dividend recipient is subject to tax in respect of the dividend for a taxable period that ends within 12 months of the end of the fiscal year, and (C) the dividend is a patronage dividend from a supply cooperative; (b) the dividend recipient is a natural person who (i) is tax resident in the jurisdiction where the ultimate parent entity is located, and (ii) does not hold ownership interests that in the aggregate entitle the holder to more than 5% of the profits or assets of the ultimate parent entity; or (c) the dividend recipient is resident in the jurisdiction where the ultimate parent entity is located and is (i) a governmental entity, (ii) an international organization, (iii) a non-profit organization, or (iv) a pension fund that is not a pension services entity. Exclusion for covered taxes (2) If subsection (1) applies to exclude a particular amount from the GloBE income of an ultimate parent entity, the entity’s GloBE income also excludes the amount of the entity’s covered taxes that are, because of the exclusion of the particular amount from its GloBE income, excluded from the entity’s adjusted covered taxes under paragraph 22 (4)(b). Back-to-back deductible dividends (3) Subsections (1) and (2) apply, with such modifications as the context requires, to a group entity for a fiscal year in respect of a particular deductible dividend distributed by the group entity directly or indirectly to the ultimate parent entity, to the extent that (a) the group entity is located in the same jurisdiction as the ultimate parent entity; (b) the group entity is subject to the deductible dividend regime; (c) the ultimate parent entity’s ownership interests in the group entity are held directly or through a chain of group entities that meet the conditions in paragraphs (a) and (b); (d) the ultimate parent entity distributes, within 12 months of the end of the fiscal year, the amount it received in respect of the particular deductible dividend; and (e) the distribution by the ultimate parent entity is a deductible dividend in respect of which a condition in any of paragraphs (1)(a) to (c) is met. Deeming rule — patronage dividends (4) For the purposes of clause (1)(a)(iii)(B), a patronage dividend from a supply cooperative is deemed to be subject to tax to the extent that it reduces a cost or expense that is otherwise deductible in computing the recipient’s income for tax purposes. Division 3 Computation of Adjusted Covered Taxes Subdivision A Adjusted Covered Taxes Definition of adjusted covered taxes 22 (1) The adjusted covered taxes , of a constituent entity of an MNE group for a fiscal year, means the current tax expense, in respect of covered taxes, in the constituent entity’s financial accounts for the fiscal year, adjusted by the following: (a) the positive or negative amount determined by the formula A − B where A is the total of the additions to covered taxes, in respect of the constituent entity for the fiscal year, under subsection (2), and B is the total of the reductions to covered taxes, in respect of the constituent entity for the fiscal year, under subsection (3); (b) the total deferred tax adjustment amount of the constituent entity for the fiscal year, unless paragraph 26 (b) or (c) applies in respect of the year and the jurisdiction in which the constituent entity is located; and (c) each amount recorded in the equity or other comprehensive income of the constituent entity for the fiscal year that can reasonably be considered to relate to an increase or decrease in respect of covered taxes, if (i) the covered taxes are in respect of an amount (referred to in this paragraph as the “included amount”) included in the constituent entity’s GloBE income or loss for the fiscal year, and (ii) the included amount is subject to tax under the laws of the jurisdiction in which the constituent entity is located. Adjusted covered taxes — additions (2) For the purposes of subsection (1), each of the following amounts is an addition to covered taxes in respect of a constituent entity of an MNE group for a fiscal year: (a) an amount recorded as an expense, in respect of covered taxes, in profit before taxation in the constituent entity’s financial accounts for the fiscal year; (b) the constituent entity’s share of a GloBE loss deferred tax asset of the MNE group that is reversed in the fiscal year; (c) an amount paid, in respect of covered taxes, in the fiscal year to the extent that the amount (i) relates to an uncertain tax position, and (ii) was treated as a reduction to the constituent entity’s covered taxes for a preceding fiscal year under paragraph (3)(d); and (d) an amount of a credit or refund — or an amount in respect of a transfer — in respect of a qualified refundable tax credit or a marketable transferable tax credit, that is recorded as a reduction in the current tax expense, in respect of covered taxes, in the financial accounts of the constituent entity for the fiscal year. Adjusted covered taxes — reductions (3) For the purposes of subsection (1), each of the following amounts is a reduction to covered taxes in respect of a constituent entity for a fiscal year: (a) in respect of an amount of income that is not included in computing the constituent entity’s GloBE income or loss, (i) any portion of the constituent entity’s current tax expense, in respect of covered taxes, in its financial accounts (referred to in this subsection as “relevant current tax expense”) for the fiscal year that relates to the amount of income, or (ii) any portion of an addition to covered taxes, in respect of the constituent entity for the fiscal year under subsection (2), that relates to the amount of income; (b) in respect of a tax credit (other than a qualified refundable tax credit, marketable transferable tax credit or tax credit the tax benefit of which is a flow-through tax benefit) that is used to reduce the constituent entity’s liability for a covered tax, (i) if the tax credit is a non-marketable transferable tax credit that was purchased by the constituent entity, the amount by which the face value of the tax credit exceeds its purchase price in proportion to the amount of the tax credit used to reduce the constituent entity’s liability for a covered tax for a taxable period that ends during the fiscal year, except any amount that is recorded as a reduction to the constituent entity’s relevant current tax expense for the fiscal year, and (ii) in any other case, the portion of the tax credit that is (A) used to reduce the constituent entity’s liability for a covered tax for a taxable period that ends during the fiscal year, and (B) not recorded as a reduction to the constituent entity’s relevant current tax expense for the fiscal year; (c) in respect of the transfer of a non-marketable transferable tax credit (other than a tax credit the tax benefit of which is a flow-through tax benefit), (i) if the constituent entity is an originator of the tax credit, any amount received by the constituent entity in exchange for the transfer of the tax credit during the fiscal year, and (ii) if the constituent entity is a purchaser of the tax credit and transfers the tax credit to another person during the fiscal year, the amount of any gain on that transfer; (d) any portion of any amount that is credited or refunded to the constituent entity (other than in respect of a qualified refundable tax credit, marketable transferable tax credit or tax credit the tax benefit of which is a flow-through tax benefit), in respect of covered taxes, that is not treated as an adjustment to the constituent entity’s relevant current tax expense for the fiscal year; (e) any portion of the constituent entity’s relevant current tax expense for the fiscal year that relates to an uncertain tax position; and (f) any portion of the constituent entity’s relevant current tax expense for the fiscal year that is not expected to be paid on or before the day that is three years after the day on which the fiscal year ends. Adjusted covered taxes — special regimes (4) For greater certainty, (a) if an amount is excluded in computing the GloBE income of a constituent entity under subsection 20 (1), the entity’s adjusted covered taxes are to be reduced proportionally; and (b) if an amount is excluded in computing the GloBE income of a constituent entity under subsection 21 (1), the entity’s adjusted covered taxes (other than the taxes for which a dividend deduction under that subsection was allowed) are to be reduced proportionally. Adjusted covered taxes — no double counting (5) For the purposes of determining a constituent entity’s adjusted covered taxes, an amount, in respect of covered taxes, is not to be taken into account more than once in determining the adjusted covered taxes of (a) a constituent entity for a particular fiscal year or another fiscal year; or (b) more than one constituent entity for a particular fiscal year or another fiscal year. Definition of covered taxes 23 (1) Covered taxes means taxes (other than excluded taxes) that (a) are recorded in the financial accounts of a particular constituent entity in respect of its (i) income or profits, or (ii) share of the income or profits of another entity that is (A) a group entity in respect of the particular constituent entity, and (B) an entity in which the particular constituent entity holds, directly or indirectly, an ownership interest; (b) are imposed under an eligible distribution tax system; (c) are imposed in lieu of an income or profits tax of general application; or (d) are charged by reference to (i) retained earnings and corporate equity, or (ii) multiple components consisting of retained earnings, corporate equity and income or profits. Definition of excluded taxes (2) Excluded taxes means (a) any tax under a qualified IIR; (b) any tax under a qualified domestic minimum top-up tax; (c) any tax under, or as a result of the application of, a qualified UTPR; (d) a disqualified refundable imputation tax; and (e) a tax paid or accrued by an insurance company in respect of returns to policyholders. Subdivision B Allocation of Covered Taxes Allocation of covered taxes to a permanent establishment 24 (1) An amount in respect of covered taxes is allocated from a particular constituent entity to a permanent establishment for a fiscal year if (a) the permanent establishment is a group entity in respect of the particular constituent entity; and (b) the amount is (i) recorded in the financial accounts of the particular constituent entity, and (ii) in respect of the GloBE income or loss of the permanent establishment for the fiscal year. Permanent establishment loss (2) If subsection 18 (26) applies in respect of a permanent establishment and the main entity in respect of the permanent establishment, the following rules apply: (a) a deferred tax expense in respect of a deferred tax asset is excluded in computing the adjusted covered taxes of the permanent establishment and the main entity if (i) the deferred tax asset is attributable to a tax loss arising in the jurisdiction in which the permanent establishment is located, and (ii) the loss is treated as an expense of the main entity under paragraph 18 (26)(a); and (b) if covered taxes arise in the jurisdiction in which the permanent establishment is located in respect of income (referred to in this paragraph as the “allocated income”) of the permanent establishment that is included in computing the GloBE income or loss of the main entity for a fiscal year under paragraph 18 (26)(b), the covered taxes are allocated from the permanent establishment to the main entity for the fiscal year, to the extent of the lesser of (i) the amount of the covered taxes, and (ii) the amount determined by the formula A × B where A is the allocated income, and B is the highest rate of corporate tax on ordinary income in the jurisdiction where the main entity is located. Allocation — tax transparent entities (3) An amount in respect of covered taxes is allocated from a tax transparent entity to its constituent entity-owner, to the extent that (a) the constituent entity-owner holds an ownership interest in the tax transparent entity; and (b) the amount is (i) recorded in the financial accounts of the tax transparent entity, and (ii) in respect of any portion of the net income or loss of the tax transparent entity that is included in computing the financial accounting income of the constituent entity-owner because of paragraphs 17 (6)(b) and (c). Allocation — controlled foreign companies (4) The following rules apply for the purposes of allocating, to a constituent entity (referred to in this subsection as the “controlled foreign company”) of an MNE group, amounts in respect of covered taxes to which a constituent entity-owner of the controlled foreign company is subject under a controlled foreign company tax regime: (a) subject to paragraphs (b) and (c), an amount in respect of covered taxes arising in a fiscal year is allocated from the constituent entity-owner to the controlled foreign company, if (i) the constituent entity-owner is located in one jurisdiction (referred to in this paragraph as the “parent jurisdiction”) and the controlled foreign company is located in another jurisdiction (referred to in this subsection as the “subsidiary jurisdiction”), and (ii) the amount is (A) recorded in the financial accounts of the constituent entity-owner for the fiscal year, and (B) in respect of covered taxes, imposed under a controlled foreign company tax regime of the parent jurisdiction, applicable in respect of the constituent entity-owner’s share of the controlled foreign company’s income; (b) for the purposes of clause (a)(ii)(B), in the case of covered taxes imposed under a blended controlled foreign company tax regime that are recorded in the financial accounts of a constituent entity-owner for a fiscal year that is a transitional special allocation year, the amount in respect of the covered taxes applicable in respect of the constituent entity-owner’s share of the controlled foreign company’s income for the fiscal year is deemed to be equal to the amount determined by the formula A × B ÷ C where A is the total amount, in respect of covered taxes imposed under the blended controlled foreign company tax regime, that is recorded in the financial accounts of the constituent entity-owner for the fiscal year, B is the amount determined by the formula D × E where D is the constituent entity-owner’s share of the income of the controlled foreign company, as determined under the blended controlled foreign company tax regime in computing the covered taxes, and E is the result of the formula F − G where F is the lowest rate that, if it were the corporate tax rate applicable in the subsidiary jurisdiction, would result in the tax charge in the subsidiary jurisdiction in respect of the controlled foreign company being sufficient to prevent a tax charge on the constituent entity-owner under the blended controlled foreign company tax regime in respect of its share of the income of the controlled foreign company for the fiscal year, and G is the rate that would be the effective tax rate of the MNE group for the subsidiary jurisdiction for the fiscal year, if the jurisdictional adjusted covered taxes of the MNE group for the subsidiary jurisdiction were (i) determined without regard to any covered taxes imposed under a controlled foreign company tax regime, and (ii) increased by an amount equal to the tax payable for the fiscal year, in respect of the standard constituent entities of the MNE group that are located in the subsidiary jurisdiction, under a qualified domestic minimum top-up tax of the subsidiary jurisdiction, to the extent the blended controlled foreign company tax regime allows a foreign tax credit for that tax payable on the same terms as any other creditable covered tax, and C is the total of all amounts each of which is an amount that would be determined for B if (i) all references in the description of B to “the controlled foreign company” and “the subsidiary jurisdiction” were read as references to “an entity in which the constituent entity-owner holds an ownership interest” and “the jurisdiction where the entity is located”, respectively, and (ii) where an entity is located in a jurisdiction for which an effective tax rate of the MNE group is not determined for the fiscal year, the effective tax rate of the MNE group for that jurisdiction for the year were determined based on the aggregate income and taxes recorded in the financial accounts of all entities, that are located in the jurisdiction, in which the constituent entity-owner holds an ownership interest, and as if those entities were constituent entities of the MNE group; and (c) if the covered taxes, in respect of which an amount would, in the absence of this paragraph, be allocated from the constituent entity-owner to the controlled foreign company under paragraph (a), are applicable in whole or in part in respect of passive income of the controlled foreign company, the amount allocated under paragraph (a) in respect of the portion of the covered taxes that are applicable in respect of the passive income is not to exceed the lesser of (i) the amount that would, in the absence of this paragraph, be allocated under paragraph (a) in respect of the portion of the covered taxes that are applicable in respect of the passive income, and (ii) the amount determined by the formula A × B where A is the amount of the controlled foreign company’s passive income included under the controlled foreign company tax regime in computing the covered taxes, and B is the top-up percentage of the MNE group for the subsidiary jurisdiction, determined without regard to any amount that is described in subparagraph (i). Allocation — hybrid entities (5) The following rules apply for the purposes of allocating amounts in respect of covered taxes from a constituent entity-owner to a constituent entity (referred to in this subsection as the “hybrid entity”) of an MNE group that is a hybrid entity in relation to the constituent entity-owner: (a) subject to paragraph (b), an amount in respect of covered taxes (referred to in this subsection as the “covered taxes amount”) recorded in the financial accounts of the constituent entity-owner for a fiscal year is allocated from the constituent entity-owner to the hybrid entity to the extent the covered taxes are in respect of income of the hybrid entity; and (b) if the covered taxes are, in whole or in part, in respect of passive income of the hybrid entity, the amount to be allocated from the constituent entity-owner to the hybrid entity under paragraph (a), in respect of the portion of the covered taxes that are in respect of the hybrid entity’s passive income, is not to exceed the lesser of (i) the portion of the covered taxes amount that is in respect of the hybrid entity’s passive income, and (ii) the amount determined by the formula A × B where A is the amount of the hybrid entity’s passive income that is included in computing the covered taxes of the constituent entity-owner under the fiscal transparency rule in the jurisdiction where it is located, and B is the top-up percentage of the MNE group for the jurisdiction where the hybrid entity is located, determined without regard to the portion of the covered taxes amount that is in respect of the hybrid entity’s passive income. Allocation — distributions (6) An amount in respect of covered taxes (referred to in this subsection as the “covered taxes amount”) for a fiscal year is allocated from a constituent entity-owner to a particular constituent entity in which it holds a direct ownership interest, if the covered taxes amount is (a) recorded in the financial accounts of the constituent entity-owner for the fiscal year; and (b) in respect of a dividend or similar amount, in respect of the direct ownership interest, that is distributed — or deemed, under the tax laws of the jurisdiction in which the particular constituent entity is located, to be distributed — by the particular constituent entity to the constituent entity-owner in the fiscal year. Subdivision C Total Deferred Tax Adjustment Amount Definition of total deferred tax adjustment amount 25 (1) The total deferred tax adjustment amount , of a constituent entity for a fiscal year, means the positive or negative amount determined by the formula A + B − C where A is (a) if the tax rate applicable in determining the constituent entity’s deferred tax expense, in respect of covered taxes, recorded in its financial accounts for the year exceeds the minimum rate, the amount that would be the constituent entity’s deferred tax expense in respect of covered taxes (subject to the exclusions under subsection (2)), if the applicable tax rate were the minimum rate, and (b) in any other case, the constituent entity’s deferred tax expense, in respect of covered taxes, recorded in its financial accounts for the year (subject to the exclusions under subsection (2)); B is the total of all amounts each of which is (a) an amount paid in the year in respect of an unclaimed accrual of the constituent entity, or (b) the amount of any recaptured deferred tax liability determined for a preceding fiscal year that reverses in the year; and C is the total of all amounts each of which is (a) a reduction to the amount determined for A that would have occurred due to the recognition of a loss deferred tax asset for a current year tax loss but for the recognition criteria under the applicable accounting standard having not been met, or (b) to the extent not reflected as a reduction in determining the amount for A, the amount by which a deferred tax asset has increased because of subsection (5). Total deferred tax adjustment amount — exclusions (2) In determining the amount for A in subsection (1), the following are to be excluded: (a) the portion of deferred tax expense that is in respect of (i) an item that is not included in computing GloBE income or loss, (ii) a disallowed accrual or an unclaimed accrual, or (iii) the generation or use of a tax credit; (b) the effect of any valuation adjustment or accounting recognition adjustment in respect of a deferred tax asset; and (c) the portion of deferred tax expense that arises because of a re-measurement with respect to a change in the rate of tax applicable in determining the deferred tax expense. Foreign tax credits — substitute loss carry-forward (3) Despite subparagraph (2)(a)(iii), deferred tax expense must be included in determining the amount for A in subsection (1) if it is in respect of a deferred tax asset in respect of (a) a substitute loss carry-forward tax credit, except that, in a fiscal year in which the substitute loss carry-forward tax credit is used, the deferred tax expense is to be included only to the extent the substitute loss carry-forward tax credit is used to reduce or eliminate covered taxes in respect of income that is included in computing the constituent entity’s GloBE income or loss; or (b) a substitute loss carry-forward recapture amount. Substitute loss carry-forward recapture amount (4) To the extent it would not otherwise arise or reverse, as the case may be, a deferred tax asset is deemed, in respect of a substitute loss carry-forward recapture amount of a constituent entity that is located in a particular jurisdiction, to (a) arise in the fiscal year that the substitute loss carry-forward recapture amount arises, in an amount equal to the product obtained by multiplying the substitute loss carry-forward recapture amount by the statutory tax rate applicable to the constituent entity in the fiscal year under the income tax laws of the particular jurisdiction; and (b) reverse, in any fiscal year (referred to in this paragraph as a “recharacterization year”) in which a recharacterization of income (referred to in this paragraph as the “recharacterized income”) described in paragraph (b) of the definition substitute loss carry-forward recapture amount in subsection 2 (1) occurs, in an amount equal to the tax credits used by the constituent entity solely as a result of the recharacterization of income in the recharacterization year, to the extent that (i) the tax credits arise under the income tax laws of the particular jurisdiction in respect of tax paid to the government of a jurisdiction other than the particular jurisdiction, (ii) the amount of the recharacterized income in the recharacterization year, together with the total amounts of recharacterized income in the preceding fiscal years, does not exceed the substitute loss carry-forward recapture amount, and (iii) the tax credits are used to reduce or eliminate covered taxes that would otherwise be owing by the constituent entity under the income tax laws of the particular jurisdiction in respect of any amount of income that is included in computing the constituent entity’s GloBE income or loss. Deferred tax asset below minimum rate (5) The amount of a deferred tax asset recorded in the financial accounts of a constituent entity of an MNE group for a fiscal year is deemed to be the amount that it would be if the tax rate applicable in determining the amount of the deferred tax asset were the minimum rate, if the following conditions are met: (a) the tax rate that would, in the absence of this subsection, be applicable in determining the amount of the deferred tax asset is less than the minimum rate; and (b) the deferred tax asset is a loss deferred tax asset that is attributable to a GloBE loss of the constituent entity for the fiscal year. Recaptured deferred tax liability (6) For the purpose of applying subsection 31 (1) in a fiscal year (referred to in this subsection as the “current fiscal year”), the adjusted covered taxes of a constituent entity for a fiscal year (referred to in this subsection as the “adjustment fiscal year”) that is the fifth fiscal year preceding the current fiscal year are to be reduced to the extent of all or the portion of any deferred tax liability that is (a) included in determining the total deferred tax adjustment amount of the constituent entity for the adjustment fiscal year; (b) not paid in any of the five fiscal years following the adjustment fiscal year; and (c) not a recapture exception accrual. Subdivision D GloBE Loss Election GloBE loss deferred tax asset 26 If a filing constituent entity of a particular MNE group elects, in respect of a jurisdiction that does not have an eligible distribution tax system, for the GloBE transition year of the particular MNE group in respect of the jurisdiction, the following rules apply: (a) paragraphs (b) and (c) apply in respect of each fiscal year (referred to in this section as an “election year”) of the particular MNE group that is the GloBE transition year or that occurs after the GloBE transition year but before the revocation year in respect of the election; (b) a GloBE loss deferred tax asset of the particular MNE group, in respect of the jurisdiction, is deemed to arise in any election year in which the particular MNE group has a net GloBE loss in respect of the jurisdiction, in an amount determined by the formula A × B where A is the absolute value of the net GloBE loss for the election year, and B is the minimum rate; (c) for the purposes of applying paragraph 22 (2)(b) in respect of an election year (referred to in this paragraph as the “application year”) in which the particular MNE group has net GloBE income in respect of the jurisdiction, a particular constituent entity that is located in the jurisdiction is considered to have reversed a particular GloBE loss deferred tax asset of the particular MNE group in respect of the jurisdiction that arose in a preceding election year (referred to in this paragraph as the “loss election year”), in an amount determined by the formula C x D ÷ E where C is the lesser of (i) the amount determined by the formula F × G − H where F is the particular MNE group’s net GloBE income in respect of the jurisdiction for the application year, G is the minimum rate, and H is the total of all amounts each is which is the amount determined by the formula K − L where K is the amount of another GloBE loss deferred tax asset of the particular MNE group, in respect of the jurisdiction, that arose in another election year preceding the loss election year, and L is the total of all amounts each of which is the portion of the other GloBE loss deferred tax asset that was considered to have been applied by a constituent entity in an election year preceding the application year, and (ii) the amount determined by the formula I − J where I is the particular GloBE loss deferred tax asset, and J is the total of all amounts each of which is all or the portion of the particular GloBE loss deferred tax asset that was considered to have been reversed by a constituent entity in an election year preceding the application year, D is the particular constituent entity’s GloBE income for the application year, and E is the total of all amounts each of which is the GloBE income of any constituent entity of the particular MNE group that is located in the jurisdiction for the application year; and (d) if the ultimate parent entity of the particular MNE group is a flow-through entity that is located in the jurisdiction, paragraphs (b) and (c) are to be applied in relation to the constituent entities of the particular MNE group that are located in the jurisdiction as if the ultimate parent entity were (i) the only constituent entity, of a separate MNE group, that is located in the jurisdiction, and (ii) not a constituent entity, of the particular MNE group, that is located in the jurisdiction. Subdivision E Post-Filing Adjustments and Tax Rate Changes Adjustments to covered taxes for a prior year 27 (1) If, in a fiscal year (referred to in this subsection as the “current year”), there is an adjustment to the liability for covered taxes, recorded in the financial accounts, of a particular constituent entity of an MNE group for a prior fiscal year that are relevant in determining its adjusted covered taxes for the prior year, the following rules apply: (a) if the adjustment results in an increase in the liability, or an immaterial decrease in the liability, (i) where the adjustment relates to a change, in the particular constituent entity’s deferred tax expense arising in the prior year, to which subsection (2) applies, the particular constituent entity’s adjusted covered taxes for the fiscal year in which the deferred tax expense is reversed are to be increased to reflect the increase in the liability to the extent that it would not, in the absence of this subsection, already be reflected in the adjusted covered taxes of the particular constituent entity for any fiscal year, and (ii) in any other case, the particular constituent entity’s adjusted covered taxes for the current year are to be increased or reduced, as the case may be, to reflect the increase or immaterial decrease in the liability to the extent that it would not, in the absence of this subsection, already be reflected in the adjusted covered taxes of the particular constituent entity for any fiscal year; (b) if the adjustment results in a decrease (other than an immaterial decrease) in the liability, for the purposes of applying subsection 31 (1) in the current year (i) the particular constituent entity’s adjusted covered taxes for the prior year are to be reduced to reflect the decrease in the liability, (ii) the particular constituent entity’s GloBE income or loss for the prior year is to be adjusted to the extent (A) the decrease in the liability results from a reduction in the particular constituent entity’s GloBE income or an increase in its GloBE loss for the prior year, and (B) it is necessary to ensure there is no reduction in the MNE group’s effective tax rate (determined without reference to this subsection), in respect of the jurisdiction in which the particular constituent entity is located, for the prior year, and (iii) the GloBE income or loss, of the particular constituent entity and any other constituent entity of the MNE group that is located in the jurisdiction, for any fiscal year subsequent to the prior year, is to be adjusted, as necessary and appropriate, to reflect the decrease in the liability; (c) for the purposes of paragraphs (a) and (b), the adjustment results in an immaterial decrease if (i) the filing constituent entity of the MNE group elects under this paragraph in respect of the adjustment, (ii) the adjustment results in a decrease in the liability, and (iii) the amount determined by the following formula is less than €1 million: A − B where A is the total of all amounts each of which is an adjustment in the current year resulting in a decrease to the liability for covered taxes, recorded in the financial accounts, of any constituent entity that is located in the jurisdiction for the prior year that are relevant in determining its adjusted covered taxes for the prior year, and B is the amount that would be determined for A if the reference in the description of A to “decrease” were read as a reference to “increase”; and (d) to the extent the adjustment arises because a loss for tax purposes for any fiscal year following the prior year is carried back to reduce income for tax purposes for the prior year, the particular constituent entity is deemed to have a deferred tax asset that (i) arises in the current year, (ii) is equal to the portion of the loss for tax purposes that reduces income for tax purposes for the prior year multiplied by the minimum rate, and (iii) is treated as having been reversed in the prior year for the purposes of applying subsection 31 (1) in respect of the prior year. Adjustments — deferred tax expense (2) For the purposes of subsection (1), a change, in a fiscal year (referred to in this subsection as the “current year”), in a constituent entity’s deferred tax expense that arose in a prior fiscal year is to be treated as an adjustment, in the current year, to the constituent entity’s liability for covered taxes, recorded in the financial accounts, for the prior year to the extent that (a) the change results from a reduction, in the current year, to the rate of tax — that was applicable in determining the deferred tax expense for the prior year — below the minimum rate; and (b) the deferred tax expense was reflected in determining the constituent entity’s total deferred tax adjustment amount for the prior year. Idem (3) For the purposes of subsection (1), (a) a change, in a particular fiscal year, in a constituent entity’s deferred tax expense that arose in a prior fiscal year is to be treated as an adjustment, in the fiscal year in which the deferred tax expense is reversed, to the constituent entity’s liability for covered taxes, recorded in the financial accounts, for the prior year to the extent that (i) the change results from an increase, in the particular year, to the rate of tax — that was applicable in determining the deferred tax expense for the prior year — from a rate that was less than the minimum rate, and (ii) the deferred tax expense was reflected in determining the constituent entity’s total deferred tax adjustment amount for the prior year; and (b) any portion of the change that is attributable to an increase of the rate of tax in excess of the minimum rate is to be disregarded in determining the adjustment under paragraph (a). Adjustments — unpaid covered taxes (4) For the purposes of applying subsection 31 (1) in a fiscal year (referred to in this subsection as the “current year”), a constituent entity’s adjusted covered taxes for another fiscal year (referred to in this subsection as the “prior year”) are to be adjusted to exclude any portion of the current tax expense that is recorded, in respect of covered taxes, in the constituent entity’s financial accounts for the prior year and included in its adjusted covered taxes for the prior year, if (a) the portion is not paid by the day (referred to in this subsection as the “specified day”) that is three years after the last day of the prior year; (b) the specified day is within the current year; and (c) the portion is greater than €1 million. Subdivision F Qualified Flow-Through Tax Benefits Definitions 28 (1) The following definitions apply in this section. adjusted investment amount , of an owner in respect of a qualified flow-through ownership interest for a fiscal year (referred to in this definition as the “determination year”), means the amount determined by the formula A − B − C where A is the investment amount of the owner in respect of the ownership interest; B is the total of all amounts each of which is the qualified flow-through tax benefits of the owner in respect of the ownership interest for a fiscal year preceding the determination year; and C is the total of all amounts each of which is the other flow-through amounts of the owner in respect of the ownership interest for the determination year or any preceding fiscal year. ( montant d’investissement ajusté ) excess benefits , of an owner in respect of a proportional amortization method interest for a particular fiscal year, means the amount determined by the formula A + B − C where A is (a) if the amount determined for C is equal to the proportional investment reduction amount of the owner in respect of the interest for the particular fiscal year, the other flow-through amounts of the owner in respect of the interest for the particular fiscal year, and (b) in any other case, the lesser of (i) the other flow-through amounts of the owner in respect of the interest for the particular fiscal year, and (ii) the amount determined by the formula D − E where D is the proportional amortization method investment remaining amount of the owner in respect of the interest for the fiscal year immediately preceding the particular fiscal year, and E is the qualified flow-through tax benefits of the owner in respect of the interest for the fiscal year immediately preceding the particular fiscal year; B is the flow-through tax benefits of the owner in respect of the interest for the particular fiscal year, to the extent that the owner’s current tax expense in respect of covered taxes in its financial accounts can reasonably be considered to have been increased (or to not have been reduced) solely because of the application of the proportional amortization method, or another financial accounting method that provides similar results as to current tax expense, in respect of the interest for the particular fiscal year; and C is the lesser of (a) the amount determined for subparagraph (b)(ii) of the description of A, and (b) the proportional investment reduction amount of the owner in respect of the interest for the particular fiscal year. ( bénéfices excédentaires ) expected tax benefits ratio , of an owner in respect of a proportional amortization method interest for a fiscal year, means the amount determined by the formula A ÷ B where A is the flow-through tax benefits of the owner in respect of the interest for the fiscal year; and B is the total amount of flow-through tax benefits that the owner reasonably expects, at the time when the interest is first acquired, to receive in respect of the interest. ( ratio des avantages fiscaux attendus ) flow-through tax benefits , of an owner in respect of a qualified flow-through ownership interest for a fiscal year, means the total of all amounts each of which is (a) the tax benefit, in respect of a tax credit (other than a qualified refundable tax credit or marketable transferable tax credit of the owner), received by the owner in respect of the ownership interest for the fiscal year; or (b) the tax benefit, in respect of a tax loss, received by the owner in respect of the ownership interest for the fiscal year. ( avantages fiscaux intermédiaires ) investment amount , of an owner in respect of an ownership interest, means the total fair market value of all consideration provided by the owner for the ownership interest. ( montant d’investissement ) other flow-through amounts , of an owner in respect of a qualified flow-through ownership interest for a fiscal year, means the total of the following amounts received by the owner in respect of the ownership interest in the fiscal year: (a) the tax benefits of qualified refundable tax credits and marketable transferable tax credits of the owner; (b) distributions (including returns of capital); and (c) proceeds from sales of all or part of the ownership interest. ( autres montants intermédiaires ) proportional amortization method interest  means a qualified flow-through ownership interest in respect of which the owner uses the proportional amortization method for financial accounting purposes. ( participation selon la méthode d’amortissement proportionnelle ) proportional amortization method investment remaining amount , of an owner in respect of a proportional amortization method interest for a fiscal year (referred to in this definition as the “determination year”), means the amount determined by the formula A − B where A is the investment amount of the owner in respect of the interest; and B is the total of all amounts each of which is the lesser of the following amounts for the determination year or a preceding fiscal year: (a) the amount determined by the formula C + D where C is (i) in the case of the determination year, nil, and (ii) in any other case, the qualified flow-through tax benefits of the owner in respect of the interest for the fiscal year, and D is the other flow-through amounts of the owner in respect of the interest for the fiscal year, and (b) the proportional investment reduction amount of the owner in respect of the interest for the fiscal year. ( montant de l’investissement résiduel selon la méthode d’amortissement proportionnelle ) proportional investment reduction amount , of an owner in respect of a proportional amortization method interest for a fiscal year, means the amount determined by the formula A × B where A is the investment amount of the owner in respect of the interest; and B is the expected tax benefits ratio of the owner in respect of the interest for the fiscal year. ( montant de la réduction de l’investissement proportionnel ) qualified flow-through ownership interest  means, subject to subsection (5), an ownership interest in a particular tax transparent entity held by a constituent entity of an MNE group directly, or indirectly through one or more other tax transparent entities that are not constituent entities of the MNE group, if (a) the assets, liabilities, income, expenses and cash flows of the particular tax transparent entity are not consolidated on a line-by-line basis in the consolidated financial statements of the ultimate parent entity of the MNE group; and (b) at the time the ownership interest was acquired by the owner, the total return to be received by the owner (including distributions, the tax benefits of tax losses and the tax benefits of qualified refundable tax credits and marketable transferable tax credits of the owner received in respect of the ownership interest, but excluding the tax benefits of tax credits other than qualified refundable tax credits and marketable transferable tax credits of the owner) from its investment in the ownership interest could not reasonably have been expected to be greater than or equal to the investment amount of the owner in respect of the ownership interest. ( titre de participation intermédiaire admissible ) qualified flow-through tax benefits , of an owner in respect of a qualified flow-through ownership interest for a fiscal year in which the ownership interest is subject to an election under subsection 18 (7), means (a) if the ownership interest is a proportional amortization method interest, the least of (i) the flow-through tax benefits of the owner in respect of the ownership interest for the fiscal year, (ii) the proportional amortization method investment remaining amount of the owner in respect of the ownership interest for the fiscal year, and (iii) the amount, if any, by which the proportional investment reduction amount, of the owner in respect of the ownership interest for the fiscal year, exceeds the other flow-through amounts of the owner in respect of the ownership interest for the fiscal year; and (b) in any other case, the lesser of (i) the flow-through tax benefits of the owner in respect of the ownership interest for the fiscal year, and (ii) the adjusted investment amount of the owner in respect of the ownership interest for the fiscal year. ( avantages fiscaux intermédiaires admissibles ) recapture amount , of an owner in respect of a qualified flow-through ownership interest for a particular fiscal year, means the lesser of (a) the amount determined by the formula A − B + C where A is the other flow-through amounts of the owner in respect of the ownership interest for the particular fiscal year, B is (i) if the ownership interest is a proportional amortization method interest, (A) where the amount determined for C in the formula in the definition excess benefits in this subsection is equal to the proportional investment reduction amount of the owner in respect of the ownership interest for the particular fiscal year, the amount determined for A, and (B) in any other case, the proportional amortization method investment remaining amount of the owner in respect of the ownership interest for the fiscal year immediately preceding the particular fiscal year, and (ii) in any other case, the adjusted investment amount of the owner in respect of the ownership interest for the fiscal year immediately preceding the particular fiscal year, and C is (i) where clause (i)(A) of the description of B applies, nil, and (ii) in any other case, the qualified flow-through tax benefits of the owner in respect of the ownership interest for the fiscal year immediately preceding the particular fiscal year, and (b) the amount determined by the formula D − E where D is the total of all amounts each of which is the qualified flow-through tax benefits of the owner in respect of the ownership interest for a fiscal year preceding the particular fiscal year, and E is the total of all amounts each of which is the recapture amount of the owner in respect of the ownership interest for a fiscal year preceding the particular fiscal year. ( montant de récupération ) tax benefit , of an owner in respect of a qualified flow-through ownership interest (a) includes, in respect of a tax credit, (i) a refund received by the owner in respect of the tax credit, and (ii) any amount received by the owner in exchange for the transfer of the tax credit; and (b) means, in respect of a tax loss attributed to the owner in respect of the ownership interest, the product obtained by multiplying the amount of the tax loss by the statutory income tax rate applicable to the owner in the jurisdiction where it is located. ( avantage fiscal ) Adjusted covered taxes — additions and reductions (2) If an owner holds a qualified flow-through ownership interest in another entity, the adjusted covered taxes of the owner for a fiscal year are deemed to be the amount that would, in the absence of section 8 , be determined by the formula A + B − C where A is the adjusted covered taxes of the owner for the fiscal year, as determined without regard to any amount determined for B or C in respect of the ownership interest for the fiscal year; B is (a) if the ownership interest is a proportional amortization method interest, the amount determined by the formula D − E where D is the qualified flow-through tax benefits, if any, of the owner in respect of the ownership interest for the fiscal year, and E is the amount by which the owner’s current tax expense in respect of covered taxes in its financial accounts can reasonably be considered to have been increased (or to not have been reduced) in respect of those qualified flow-through tax benefits solely because of the application of the proportional amortization method, or another financial accounting method that provides similar results as to current tax expense, in respect of the ownership interest for the fiscal year, and (b) in any other case, the lesser of (i) the qualified flow-through tax benefits, if any, of the owner in respect of the ownership interest for the fiscal year, and (ii) the amount by which the owner’s current tax expense in respect of covered taxes in its financial accounts can reasonably be considered to have been reduced in the fiscal year because of those qualified flow-through tax benefits; and C is the amount determined by the formula F + G where F is (a) if the ownership interest is a proportional amortization method interest, the excess benefits of the owner in respect of the ownership interest for the fiscal year, and (b) in any other case, the amount by which the flow-through tax benefits of the owner in respect of the ownership interest for the fiscal year exceeds the adjusted investment amount of the owner in respect of the ownership interest for the fiscal year, except to the extent that the owner’s current tax expense in respect of covered taxes in its financial accounts can reasonably be considered to have been reduced in the fiscal year because of those flow-through tax benefits, and G is the recapture amount of the owner in respect of the ownership interest for the fiscal year. Proportional amortization method interest — election (3) A qualified flow-through ownership interest held by an owner that is a constituent entity of an MNE group that would not, in the absence of this subsection, be a proportional amortization method interest is irrevocably deemed to be a proportional amortization method interest if the filing constituent entity of the MNE group so elects in the later of (a) the fiscal year in which the ownership interest is first acquired by the owner; and (b) the first fiscal year in which (i) the owner is subject to a qualified IIR, qualified UTPR or qualified domestic minimum top-up tax, and (ii) the owner is a constituent entity of the MNE group. Deemed ownership interests — debt-accounted investments (4) For the purposes of this section, an investment, other than an ownership interest, in a particular tax transparent entity held by a particular constituent entity of an MNE group directly, or indirectly through one or more other tax transparent entities that are not constituent entities of the MNE group, is deemed to be an ownership interest held by the particular constituent entity in the particular tax transparent entity if the investment (a) is treated as an equity interest under the income tax laws of the jurisdiction in which the particular constituent entity is located; and (b) would be treated as an equity interest under an authorized financial accounting standard of the jurisdiction in which the particular tax transparent entity operates. Qualified flow-through ownership interest — anti-avoidance (5) An ownership interest in an entity held by an owner that would, in the absence of this subsection, be a qualified flow-through ownership interest is not a qualified flow-through ownership interest if (a) the owner (i) does not have a bona fide economic interest in the entity, or (ii) is protected from the loss of its investment in the entity; or (b) the tax laws of the jurisdiction in which the entity operates make receipt of the tax benefit in respect of any tax credits of the entity by the owner conditional on the owner or the developer of the project that originates the tax credits being subject to a qualified IIR, qualified UTPR or qualified domestic minimum top-up tax. Division 4 Computation of Effective Tax Rate and Top-up Amount Subdivision A Effective Tax Rate Definition of effective tax rate 29 (1) The effective tax rate , of an MNE group for a jurisdiction for a fiscal year, means (a) if the net GloBE income of the MNE group for the jurisdiction for the fiscal year is nil, the minimum rate; and (b) in any other case, the result (expressed as a percentage rounded to four decimal points) of the formula (A − B) ÷ C where A is the jurisdictional adjusted covered taxes of the MNE group for the jurisdiction for the fiscal year, B is the lesser of (i) the amount determined for A, and (ii) the excess negative tax expense of the MNE group for the jurisdiction for the fiscal year, and C is the net GloBE income of the MNE group for the jurisdiction for the fiscal year. Definition of net GloBE income (2) The net GloBE income , of an MNE group for a jurisdiction for a fiscal year, means the amount determined by the formula A − B where A is the total of all amounts each of which is the GloBE income for the fiscal year of a standard constituent entity of the MNE group that is located in the jurisdiction; and B is the total of all amounts each of which is the GloBE loss for the fiscal year of a standard constituent entity of the MNE group that is located in the jurisdiction. Definition of jurisdictional adjusted covered taxes (3) The jurisdictional adjusted covered taxes , of an MNE group for a jurisdiction for a fiscal year, means the total of all amounts each of which is the adjusted covered taxes for the fiscal year of a standard constituent entity of the MNE group that is located in the jurisdiction. Definition of excess negative tax expense (4) The excess negative tax expense , of an MNE group for a jurisdiction for a particular fiscal year, means the amount determined by the formula A + B − C where A is the absolute value of the total of all amounts each of which is the jurisdictional adjusted covered taxes of the MNE group for the jurisdiction for a fiscal year (a) that precedes the particular fiscal year, (b) in which the amount that would, in the absence of section 8 , be the net GloBE income of the MNE group for the jurisdiction is nil or greater, and (c) in which the jurisdictional adjusted covered taxes of the MNE group for the jurisdiction are less than nil; B is the total of all amounts each of which is the amount by which the excess negative tax expense top-up amount, of a standard constituent entity of the MNE group that is located in the jurisdiction, for a fiscal year that precedes the particular fiscal year, is reduced because of an election under subsection 31 (5); and C is the total of all amounts each of which is the amount determined for B in the formula in paragraph (1)(b) in respect of the MNE group for the jurisdiction for a fiscal year, that precedes the particular fiscal year, in which that paragraph applies. Subdivision B Top-up Amount of a Standard Constituent Entity Definition of top-up amount 30 (1) The top-up amount , of a particular standard constituent entity of an MNE group that is located in a jurisdiction for a fiscal year, means (a) if the net GloBE income of the MNE group for the jurisdiction for the fiscal year is greater than nil, the amount determined by the formula A × B ÷ C where A is the jurisdictional top-up amount of the MNE group for the jurisdiction for the fiscal year, B is the GloBE income of the particular standard constituent entity for the fiscal year, and C is the total of all amounts each of which is the GloBE income, of a standard constituent entity of the MNE group that is located in the jurisdiction, for the fiscal year; and (b) if the net GloBE income of the MNE group for the jurisdiction for the fiscal year is nil, the total of (i) the allocated adjustment top-up amount of the particular standard constituent entity for the fiscal year, and (ii) where the jurisdictional adjusted covered taxes of the MNE group for the jurisdiction for the fiscal year is less than nil, the excess negative tax expense top-up amount of the particular standard constituent entity for the fiscal year. Definition of jurisdictional top-up amount (2) The jurisdictional top-up amount , of an MNE group for a jurisdiction for a fiscal year, means the amount determined by the formula A × B + C − D where A is the top-up percentage of the MNE group for the jurisdiction for the fiscal year; B is the excess profit of the MNE group for the jurisdiction for the fiscal year; C is the total of all amounts each of which is an adjustment top-up amount of the MNE group for the jurisdiction for the fiscal year; and D is the total amount of tax payable for a fiscal year, in respect of the standard constituent entities of the MNE group that are located in the jurisdiction, under a qualified domestic minimum top-up tax of the jurisdiction. Definition of top-up percentage (3) The top-up percentage , of an MNE group for a jurisdiction for a fiscal year, means the percentage point difference determined by the formula A − B where A is the minimum rate; and B is the effective tax rate of the MNE group for the jurisdiction for the fiscal year. Definition of excess profit (4) The excess profit , of an MNE group for a jurisdiction for a fiscal year, means the amount determined by the formula A − B where A is the net GloBE income of the MNE group for the jurisdiction for the fiscal year; and B is the substance-based income exclusion amount of the MNE group for the jurisdiction for the fiscal year. Definition of allocated adjustment top-up amount (5) The allocated adjustment top-up amount of a particular standard constituent entity of an MNE group that is located in a jurisdiction for a particular fiscal year means the total of all amounts each of which is determined by the formula (A − B) × C ÷ D where A is a particular adjustment top-up amount of the MNE group for the jurisdiction for the particular fiscal year; B is the amount determined by the formula E × A ÷ (F + G) where E is the total amount of tax payable for the particular fiscal year, in respect of the standard constituent entities of the MNE group that are located in the jurisdiction, under a qualified domestic minimum top-up tax of the jurisdiction, F is the total of all adjustment top-up amounts of the MNE group for the jurisdiction for the particular fiscal year, and G is the jurisdictional excess negative tax expense top-up amount of the MNE group for the jurisdiction for the particular fiscal year, if the formula in that definition in subsection 31 (4) were read without reference to C; C is the GloBE income of the particular standard constituent entity, for the adjustment year to which the particular adjustment top-up amount relates, as adjusted because of the application of any ETR adjustment provision in the particular fiscal year or any preceding fiscal year; and D is the total of all amounts each of which is the GloBE income, for the adjustment year, of a standard constituent entity of the MNE group that is located in the jurisdiction, as adjusted because of the application of any ETR adjustment provision in the particular fiscal year or any preceding fiscal year. Adjustment top-up amount 31 (1) For the purposes of determining an adjustment top-up amount of an MNE group for a jurisdiction for a fiscal year, if an ETR adjustment provision applies in the fiscal year to adjust, for the purposes of this subsection, the GloBE income or loss or adjusted covered taxes of any standard constituent entity of the MNE group that is located in the jurisdiction, or the jurisdictional adjusted covered taxes of the MNE group for the jurisdiction, for an adjustment year, the following rules apply: (a) the jurisdictional top-up amount of the MNE group for the jurisdiction for the adjustment year (referred to in this subsection as the “recalculated jurisdictional top-up amount”) is calculated taking into account the adjustment; and (b) the amount determined by the following formula is an adjustment top-up amount of the MNE group for the jurisdiction for the fiscal year: (A − B) × C where A is the recalculated jurisdictional top-up amount of the MNE group for the jurisdiction for the adjustment year, B is the jurisdictional top-up amount of the MNE group for the jurisdiction for the adjustment year, determined without reference to paragraph (a), and C is (i) the disposition recapture ratio, if the adjustment is an adjustment to adjusted covered taxes under subsection 37 (5), and (ii) 1, in any other case. Definition of excess negative tax expense top-up amount (2) Subject to subsection (5), the excess negative tax expense top-up amount of a particular negative tax expense constituent entity of an MNE group that is located in a jurisdiction for a fiscal year means the amount determined by the formula A × B ÷ C where A is the jurisdictional excess negative tax expense top-up amount of the MNE group for the jurisdiction for the fiscal year; B is the amount determined by the formula D × E − F where D is the GloBE income or loss of the particular negative tax expense constituent entity for the fiscal year, E is the minimum rate, and F is the adjusted covered taxes of the particular negative tax expense constituent entity for the fiscal year; and C is the total of all amounts each of which is the amount determined for B for a negative tax expense constituent entity of the MNE group for the jurisdiction for the fiscal year. Definition of negative tax expense constituent entity (3) A negative tax expense constituent entity , in respect of an MNE group for a fiscal year, means a standard constituent entity of the MNE group whose adjusted covered taxes for the fiscal year are less than each of the following amounts: (a) nil; and (b) the amount that would, in the absence of section 8 , be determined by the formula A × B where A is the GloBE income or loss of the entity for the fiscal year, and B is the minimum rate. Definition of jurisdictional excess negative tax expense top-up amount (4) The jurisdictional excess negative tax expense top-up amount , of an MNE group for a jurisdiction for a fiscal year in which its net GloBE income for the jurisdiction is nil and its jurisdictional adjusted covered taxes for the jurisdiction is less than nil, means the amount determined by the formula A − B − C where A is the amount that would, in the absence of section 8 , be determined by the formula D × E where D is the total of all amounts each of which is the GloBE income or loss for the fiscal year of a standard constituent entity of the MNE group that is located in the jurisdiction, and E is the minimum rate; B is the jurisdictional adjusted covered taxes of the MNE group for the jurisdiction for the fiscal year; and C is the amount determined by the formula F × (A − B) ÷ (A − B + G) where F is the total amount of tax payable for the fiscal year, in respect of the standard constituent entities of the MNE group that are located in the jurisdiction, under a qualified domestic minimum top-up tax of the jurisdiction, and G is the total of all adjustment top-up amounts of the MNE group for the jurisdiction for the fiscal year. Election — excess negative tax expense carry-forward (5) If the filing constituent entity of an MNE group elects for a jurisdiction for a fiscal year, the excess negative tax expense top-up amount of a standard constituent entity of the MNE group that is located in the jurisdiction for the fiscal year is deemed to be the greater of (a) nil; and (b) the portion of the excess negative tax expense top-up amount, determined without reference to this subsection, that can reasonably be considered to relate to a tax loss that was carried back from the fiscal year to another fiscal year of the MNE group ending before the fiscal year and deducted under the income tax laws of the jurisdiction in the other fiscal year. Subdivision C Substance-based Income Exclusion Definition of substance-based income exclusion amount 32 (1) Subject to subsection (16), the substance-based income exclusion amount of an MNE group for a jurisdiction for a fiscal year means the lesser of (a) the total of all amounts each of which is determined by the formula A + B where A is, subject to subsection 49 (1), 5% of the eligible payroll costs of a standard constituent entity of the MNE group that is located in the jurisdiction for the fiscal year, and B is, subject to subsection 49 (2), 5% of the eligible tangible asset amount of the standard constituent entity for the fiscal year, and (b) the portion of the amount described in paragraph (a) that the filing constituent entity of the MNE group specifies as the substance-based income exclusion amount of the MNE group for the jurisdiction in the GIR in respect of the MNE group for the fiscal year. Definition of eligible payroll costs (2) Subject to subsections (5) to (7) and subparagraph 38 (1)(d)(i), the eligible payroll costs of a particular standard constituent entity of an MNE group for a fiscal year, means all payroll costs (other than excluded costs of the particular standard constituent entity) in respect of eligible employees of any standard constituent entity of the MNE group, incurred (a) if the particular standard constituent entity is a permanent establishment, by the main entity in respect of the permanent establishment and reflected in the separate financial accounts for the fiscal year of the permanent establishment, as adjusted in accordance with clause 17 (1)(b)(ii)(B) or subsection 17 (2); and (b) in any other case, by the particular standard constituent entity and reflected in the particular standard constituent entity’s financial accounts for the fiscal year. Definition of excluded costs (3) Excluded costs , of a particular standard constituent entity of an MNE group, means any costs if (a) it is not the case that (i) the costs are payable primarily in respect of work done in the course of the ordinary operating activities of any standard constituent entity of the MNE group, and (ii) that work is done in the jurisdiction in which the particular standard constituent entity is located; (b) the costs are capitalized and included in the carrying value of an asset used to calculate the eligible tangible asset amount of any constituent entity of the MNE group, as determined without reference to subsection (11); (c) where the particular standard constituent entity is the main entity in respect of a permanent establishment, the costs are reflected in the separate financial accounts of the permanent establishment as adjusted in accordance with clause 17 (1)(b)(ii)(B) or subsection 17 (2); (d) the costs are core international shipping costs, or ancillary international shipping costs that can reasonably be considered to be attributable to qualified ancillary international shipping income, of any constituent entity of the MNE group; or (e) where the particular standard constituent entity is a permanent establishment, the costs can reasonably be considered to be attributable to income that is excluded from the GloBE income or loss of the particular standard constituent entity under paragraph 17 (6)(a) or subsection 20 (4). Interjurisdictional employee deeming rule (4) For the purposes of subparagraph (3)(a)(ii), if an eligible employee of a particular standard constituent entity of an MNE group spends more than 50% of the time that the eligible employee is doing work (referred to in this subsection as the “ordinary course work”) in the course of the ordinary operating activities of the standard constituent entities of the MNE group in a fiscal year, in the jurisdiction in which the particular standard constituent entity is located, all the ordinary course work is deemed to be done in the jurisdiction for the fiscal year. Eligible payroll costs — flow-through entity allocation (5) If a particular amount would, in the absence of this subsection, be included in the eligible payroll costs of a constituent entity that is a flow-through entity for a fiscal year, the following rules apply: (a) if the constituent entity is an ultimate parent entity, the portion of the particular amount that is determined by the following formula is excluded from the eligible payroll costs of the constituent entity for the fiscal year: A × B ÷ C where A is the particular amount, B is the amount of any reduction to the GloBE income of the constituent entity for the fiscal year under subsection 20 (1), and C is the GloBE income of the constituent entity for the fiscal year before the reduction referred to in the description of B; and (b) in any other case, (i) the eligible payroll costs of the constituent entity for the fiscal year are deemed to be nil, and (ii) if all or any portion of the net income or loss of the constituent entity is allocated to one or more of its constituent entity-owners (each referred to in this subparagraph as a “relevant owner”) under paragraphs 17 (6)(b) and (c) for the fiscal year, (A) the particular amount is allocated to each relevant owner in the same proportion as the financial accounting income is allocated to that relevant owner, and (B) if a relevant owner is located in the same jurisdiction as the constituent entity, any portion of the particular amount that is allocated to the relevant owner under clause (A) is included in the eligible payroll costs of the relevant owner for the fiscal year. Eligible payroll costs — deductible dividend regime (6) If a particular amount would, in the absence of this subsection, be included in the eligible payroll costs, for a fiscal year, of a constituent entity that is subject to a deductible dividend regime, the portion of the particular amount determined by the following formula is excluded from the eligible payroll costs of the constituent entity for the fiscal year: A × B ÷ C where A is the particular amount; B is the total amount of any reductions to the GloBE income of the constituent entity for the fiscal year under subsections 21 (1) to (3); and C is the GloBE income of the constituent entity for the fiscal year before the reductions referred to in the description of B. Eligible payroll costs — taxable distribution method (7) If a particular amount would, in the absence of this subsection, be included in the eligible payroll costs, for a fiscal year, of a constituent entity an ownership interest in which is subject to an election under subsection 42 (2), the portion of the particular amount determined by the following formula is excluded from the eligible payroll costs of the constituent entity for the fiscal year: A × B ÷ C where A is the particular amount; B is the portion of the GloBE income of the constituent entity for the fiscal year that is attributable to ownership interests of the constituent entity in respect of which an election under subsection 42 (2) applies for the fiscal year; and C is the GloBE income of the constituent entity for the fiscal year. Definition of eligible employee (8) An eligible employee , of a standard constituent entity of an MNE group, means an individual who is (a) regarded as an employee (or, if a distinction is made, a part-time employee) of the standard constituent entity under the laws of the jurisdiction in which it is located; or (b) an independent contractor who acts under the direction and control of one or more standard constituent entities of the MNE group. Definition of eligible tangible asset amount (9) Subject to subsections (10) to (13) and subparagraph 38 (1)(d)(ii), the eligible tangible asset amount of a standard constituent entity for a fiscal year means the amount determined by the formula (A + B) ÷ 2 where A is the total of all amounts each of which is the carrying value of an eligible tangible asset of the standard constituent entity at the start of the fiscal year; and B is the total of all amounts each of which is the carrying value of an eligible tangible asset of the standard constituent entity at the end of the fiscal year. Eligible tangible asset amount — main entity limitation (10) The eligible tangible asset amount for a fiscal year of a standard constituent entity that is a main entity in respect of a permanent establishment is not to include any amount in respect of the carrying value of an eligible tangible asset held by the standard constituent entity to the extent that the eligible tangible asset is reflected in the separate financial accounts of the permanent establishment as adjusted in accordance with clause 17 (1)(b)(ii)(B) or subsection 17 (2). Eligible tangible asset amount — flow-through entity allocation (11) If an amount would, in the absence of this subsection, be included in the eligible tangible asset amount, for a fiscal year, of a constituent entity that is a flow-through entity, the rules in subsection (5) apply in respect of the amount, except that any reference in that subsection to “eligible payroll costs” is to be read as a reference to “eligible tangible asset amount”. Eligible tangible asset amount — deductible dividend regime (12) If an amount would, in the absence of this subsection, be included in the eligible tangible asset amount, for a fiscal year, of a constituent entity that is subject to a deductible dividend regime, subsection (6) applies in respect of the amount, except that any reference in that subsection to “eligible payroll costs” is to be read as a reference to “eligible tangible asset amount”. Eligible tangible asset amount — taxable distribution method (13) If an amount would, in the absence of this subsection, be included in the eligible tangible asset amount, for a fiscal year, of a constituent entity an ownership interest in which is subject to an election under subsection 42 (2), subsection (7) applies in respect of the amount, except that any reference in that subsection to “eligible payroll costs” is to be read as a reference to “eligible tangible asset amount”. Definition of eligible tangible asset (14) An eligible tangible asset of a constituent entity at a particular time means an asset that is (a) held at the particular time by (i) if the constituent entity is a permanent establishment, the main entity in respect of the permanent establishment, and (ii) in any other case, the constituent entity; (b) if the constituent entity is a permanent establishment, reflected in the separate financial accounts of the permanent establishment as adjusted in accordance with clause 17 (1)(b)(ii)(B) or subsection 17 (2) for the fiscal year that includes the particular time; (c) any of the following: (i) property, plant or equipment, (ii) natural resources, (iii) if the constituent entity is the lessee, a right-of-use asset in respect of the lease of a tangible asset, (iv) if the constituent entity is the lessor, property, all or any portion of which is leased out to a person under an operating lease, or (v) a licence from, or similar arrangement with, a government if (A) the licence or arrangement is for the use of immovable property or exploitation of natural resources, and (B) the use of the property or exploitation of the resources entails significant investment in tangible assets; and (d) none of the following: (i) property that is held for sale, lease or investment, or, if the constituent entity is the lessee, that is leased out to a person under a finance lease, (ii) a tangible asset used in the generation of core international shipping income in the fiscal year that includes the particular time, (iii) if the constituent entity is a permanent establishment, an asset to the extent it can reasonably be considered to be used in the generation of income that is excluded from the GloBE income or loss of the constituent entity under paragraph 17 (6)(a) or subsection 20 (4), or (iv) a right-of-use asset in respect of the lease of a tangible asset that is regularly leased several times to different lessees during the fiscal year, if the average lease period, including any renewals and extensions, with respect to lessees of the asset is 30 days or less (referred to in this subsection and subsection (15) as a “short-term rental asset”). Eligible tangible asset — carrying value (15) For the purposes of subsection (9), the carrying value of an eligible tangible asset of a constituent entity of an MNE group at a particular time is the carrying value of the eligible tangible asset recorded, or calculated as it would have been if it were recorded, at the particular time for the purposes of preparing the consolidated financial statements of the ultimate parent entity of the MNE group, as reduced (to the extent it has not already been so reduced) by the amount (a) of any positive difference between the carrying value so determined and the carrying value of the same eligible tangible asset at the time it was most recently acquired by the constituent entity, to the extent such difference is solely attributable to one or more revaluations of the asset; (b) of any accumulated depreciation, amortization, depletion or impairment loss in respect of the asset; (c) of the reversal of any impairment loss to the extent that the reversal exceeds the impairment loss; (d) recorded by another constituent entity of the MNE group in its financial accounts as a right-of-use asset in respect of the eligible tangible asset (other than a short-term rental asset); (e) of undiscounted value of any payments remaining due, in respect of the eligible tangible asset (other than a short-term rental asset), from a lessee of the eligible tangible asset that is not a constituent entity of the MNE group; (f) if the eligible tangible asset is used in the generation of qualified ancillary international shipping income of the constituent entity for the fiscal year that includes the particular time, determined by the formula A × B ÷ C where A is the carrying value of the eligible tangible asset, determined without reference to this paragraph and paragraph (g), B is the qualified ancillary international shipping income of the constituent entity for the fiscal year, and C is the ancillary international shipping income of the constituent entity for the fiscal year; and (g) determined, for the fiscal year that includes the particular time, by the formula D × E ÷ F where D is the carrying value of the eligible tangible asset, determined without reference to this paragraph, E is (i) nil, if the eligible tangible asset — or the underlying leased tangible asset, where the condition in subparagraph (14)(c)(iii) is satisfied, or the underlying immovable property or natural resources, where the condition in subparagraph (14)(c)(v) is satisfied — is located in the jurisdiction in which the constituent entity is located for more than 50% of the days in the fiscal year (referred to in this paragraph as the “qualifying days”) that paragraphs (14)(a) and, if the constituent entity is a permanent establishment, (14)(b) are satisfied in respect of the eligible tangible asset, and (ii) the number of qualifying days in which the eligible tangible asset is not located in the jurisdiction in which the constituent entity is located, in any other case, and F is the number of qualifying days. Election not to apply exclusion for a jurisdiction (16) The substance-based income exclusion amount of an MNE group for a jurisdiction for a fiscal year is deemed to be nil if the filing constituent entity of the MNE group elects under this subsection not to apply the substance-based income exclusion for the jurisdiction for the fiscal year. Subdivision D De Minimis Jurisdiction Exclusion De minimis jurisdiction exclusion 33 (1) Despite sections 30 and 34 , the top-up amount for a particular fiscal year of each constituent entity (referred to in this section as an “eligible constituent entity”) of an MNE group that is located in a jurisdiction (other than a stateless constituent entity, investment entity or insurance investment entity) is deemed to be the amount that would be the top-up amount of the eligible constituent entity if the top-up percentage that is relevant in calculating that top-up amount were nil, if (a) the filing constituent entity of the MNE group elects in respect of the jurisdiction for the particular fiscal year; (b) the amount determined by the following formula is less than €10 million: (A + B + C) ÷ D where A is the jurisdictional GloBE revenue of the MNE group for the jurisdiction for the particular fiscal year, B is the jurisdictional GloBE revenue of the MNE group for the jurisdiction for the fiscal year (referred to in this subsection as the “first preceding year”) immediately preceding the particular fiscal year, C is the jurisdictional GloBE revenue of the MNE group for the jurisdiction for the fiscal year (referred to in this subsection as the “second preceding year”) immediately preceding the first preceding year, and D is (i) 3, if the jurisdictional GloBE revenue of the MNE group for the jurisdiction is greater than nil — or at least one eligible constituent entity of the MNE group that is located in the jurisdiction has a GloBE loss — for both the first preceding year and the second preceding year, (ii) 2, if the jurisdictional GloBE revenue of the MNE group for the jurisdiction is greater than nil — or at least one eligible constituent entity of the MNE group that is located in the jurisdiction has a GloBE loss — for only one of the first preceding year and the second preceding year, and (iii) 1, in any other case; and (c) the amount determined by the following formula is less than €1 million: (E + F + G) ÷ D where E is the jurisdictional GloBE income or loss of the MNE group for the jurisdiction for the particular fiscal year, F is the jurisdictional GloBE income or loss of the MNE group for the jurisdiction for the first preceding year, and G is the jurisdictional GloBE income or loss of the MNE group for the jurisdiction for the second preceding year. Definition of jurisdictional GloBE revenue (2) The jurisdictional GloBE revenue , of an MNE group for a jurisdiction for a fiscal year, means the total of all amounts determined by the formula A × B ÷ 365 where A is the financial accounting revenue of an eligible constituent entity of the MNE group that is located in the jurisdiction for the fiscal year, subject to any adjustments made in determining the GloBE income or loss of the eligible constituent entity for the fiscal year under Division 2, subsection 25 (6) and paragraphs 27 (1)(b) and 37 (4)(b) and (5)(b), other than any adjustment (a) in respect of expenses, or (b) that is a decrease to the eligible constituent entity’s GloBE income or loss for the fiscal year resulting from the application of an ETR adjustment provision in a subsequent fiscal year; and B is the number of days in the fiscal year. Definition of financial accounting revenue (3) The financial accounting revenue , of an eligible constituent entity of an MNE group for a fiscal year, means the revenue amount for the fiscal year determined for the entity in the manner set out, and in accordance with the principles reflected, in the definition financial accounting income in subsection 17 (1), with such modifications as the context requires. Definition of jurisdictional GloBE income or loss (4) The jurisdictional GloBE income or loss , of an MNE group for a jurisdiction for a fiscal year, means the amount that would, in the absence of section 8 , be determined by the formula A × B ÷ 365 where A is the total of all amounts each of which is the GloBE income or loss for the fiscal year of an eligible constituent entity of the MNE group that is located in the jurisdiction determined without taking into account any adjustment that is a decrease to the eligible constituent entity’s GloBE income or loss for the fiscal year resulting from the application of an ETR adjustment provision in a subsequent fiscal year; and B is the number of days in the fiscal year. Subdivision E Top-up Amount of a Minority-Owned Constituent Entity Deeming rule — minority-owned subgroup 34 (1) For the purposes of sections 29 to 31 and subsections 32 (1), (2), (4), (8) to (10) and (16), each minority-owned constituent entity that would, in the absence of this section, be a constituent entity of an MNE group is deemed not to be a constituent entity of the MNE group. Minority-owned constituent entity — top-up amount (2) The top-up amount of a minority-owned constituent entity (other than an investment entity or an insurance investment entity) of a minority-owned subgroup that is located in a jurisdiction for a fiscal year is the amount that would be determined under subsection 30 (1) if the references in sections 29 to 31 and subsections 32 (1) to (4), (8) to (10) and (16) to “MNE group” and “standard constituent entity” were read as references to “minority-owned subgroup” and “minority-owned constituent entity (other than an investment entity or an insurance investment entity)”, respectively. Interpretation rule (3) For the purposes of determining the top-up amount of a minority-owned constituent entity under subsection (2), subsection 21 (3) and sections 37 to 39 , 41 and 42 apply with such modifications, if any, as the context requires. Allocation of minority-owned constituent entity top-up amount (4) For the purposes of Division 1, the GloBE income of a minority-owned constituent entity of a minority-owned subgroup that is located in a jurisdiction for a fiscal year, is (a) if the net GloBE income of the minority-owned subgroup for the jurisdiction for the fiscal year, as computed in determining the top-up amount of the minority-owned constituent entity under subsection (2), is nil, the GloBE income that would be determined under subsection 15 (5) if the net GloBE income, and the allocated adjustment top-up amount and excess negative tax expense top-up amount of the minority-owned constituent entity, were the amounts computed in determining the top-up amount of the minority-owned constituent entity under subsection (2); and (b) in any other case, the GloBE income computed in determining the minority-owned constituent entity’s top-up amount under subsection (2). Subdivision F Top-up Amount of a Joint Venture Entity Joint venture top-up amount 35 (1) The top-up amount of a joint venture entity of a joint venture group, in respect of a particular MNE group, for a fiscal year is the amount that would be determined under subsection 30 (1), 34 (2) or 36 (2), if (a) all references in Divisions 2 and 3, Subdivisions A to E, G and H of this Division, Divisions 5 to 7 and Subdivision B of Division 8 to (i) “MNE group” and “ultimate parent entity” were read as references to “joint venture group” and “joint venture”, respectively, and (ii) “standard constituent entity” and “constituent entity” were read as references to “joint venture entity”; (b) for greater certainty, the GloBE income or loss and adjusted covered taxes, as well as all the amounts that are to be computed under Subdivisions A to E, G and H of this Division and Divisions 5 to 7 in determining the top-up amount of the joint venture entity, were determined (i) applying the rules in paragraph (a), and (ii) based on the assumption that the joint venture group was a separate MNE group of which the joint venture was the ultimate parent entity and the joint venture entities were the only constituent entities; (c) any amount of covered taxes that would be allocated from a constituent entity of the particular MNE group to the joint venture entity under any of subsections 24 (4) to (6), if those subsections were applied without regard to paragraphs (a) and (b) of this subsection and the joint venture entity were a constituent entity of the particular MNE group, were allocated to the joint venture entity; and (d) for the purposes of this subsection, any other modifications were made to Part 1 and Divisions 2 and 3, this Division, Divisions 5 to 7, Subdivision B of Division 8 and Subdivision A of Division 9 of this Part as the context requires. Allocation of joint venture top-up amount (2) For the purposes of Division 1 of this Part and Division 2 of Part 5, (a) any joint venture entity in respect of a qualifying MNE group is deemed to be a constituent entity but not a relevant parent entity of the qualifying MNE group; and (b) the GloBE income of a joint venture entity of a joint venture group that is located in a jurisdiction for a fiscal year, is (i) if the net GloBE income of the joint venture group for the jurisdiction for the fiscal year, as computed in determining the top-up amount of the joint venture entity under subsection (1), is nil, the GloBE income that would be determined under subsection 15 (5) if the net GloBE income, and the allocated adjustment top-up amount and excess negative tax expense top-up amount of the joint venture entity, were the amounts computed in determining the top-up amount of the joint venture entity under subsection (1), and (ii) in any other case, the GloBE income computed in determining the joint venture entity’s top-up amount under subsection (1). Permanent establishment — deemed joint venture subsidiary (3) For the purposes of this section, if the main entity in respect of a permanent establishment is a joint venture, or a joint venture subsidiary of the joint venture, the permanent establishment is deemed to be a joint venture subsidiary of the joint venture separate and distinct from the main entity and any other permanent establishment of the main entity that is also deemed to be a joint venture subsidiary under this subsection. Subdivision G Top-up Amount of an Investment Entity Definitions 36 (1) The following definitions apply in this section. investment entity adjusted covered taxes amount  means the amount that would, in the absence of section 8 , be determined in respect of an investment subgroup entity for a fiscal year by the formula A − (B × A) where A is the amount of adjusted covered taxes of the investment subgroup entity for the fiscal year; and B is the minority investor percentage of the investment subgroup entity for the fiscal year. ( montant des impôts concernés ajustés de l’entité d’investissement ) investment entity GloBE income amount  means the amount that would, in the absence of section 8 , be determined in respect of an investment subgroup entity for a fiscal year by the formula A − (B × A) where A is the GloBE income or loss of the investment subgroup entity for the fiscal year; and B is the minority investor percentage of the investment subgroup entity for the fiscal year. ( montant du revenu GloBE de l’entité d’investissement ) investment subgroup , in respect of an MNE group, means all investment subgroup entities of the MNE group. ( sous-groupe d’investissement ) investment subgroup entity , of an MNE group, means a constituent entity of the MNE group that is an investment entity or an insurance investment entity. ( entité de sous-groupe d’investissement ) minority investor percentage , of an investment subgroup entity for a fiscal year, means the percentage of the GloBE income or loss of the investment subgroup entity for the fiscal year that is attributable (based on the relevant assumptions) to any ownership interest in the investment subgroup entity, other than any ownership interest held, directly or indirectly, by the ultimate parent entity of the MNE group of which the investment subgroup entity is a constituent entity. ( pourcentage de l’investisseur minoritaire ) minority-owned investment entity , of a minority-owned subgroup of an MNE group, means a constituent entity of the MNE group that is (a) an investment entity or an insurance investment entity; and (b) included in the minority-owned subgroup. ( entité d’investissement à détention minoritaire ) minority-owned investment subgroup , in respect of a minority-owned subgroup, means all minority-owned investment entities of the minority-owned subgroup. ( sous-groupe d’investissement à détention minoritaire ) relevant assumptions , in respect of an attribution of GloBE income or loss for a fiscal year to an ownership interest in an investment subgroup entity, means the assumptions that (a) the principles of the authorized financial accounting standard applicable in the preparation of the consolidated financial statements for the fiscal year of the ultimate parent entity of the MNE group that includes the investment subgroup entity are used for the purposes of the attribution; (b) the net income of the investment subgroup entity is equal to its GloBE income or loss; and (c) no amount of the GloBE income or loss of the investment subgroup entity is attributable to transactions with other group entities of the MNE group. ( hypothèses pertinentes ) Investment subgroup entity — top-up amount (2) Subject to subparagraphs 42 (2)(d)(ii) and (e)(ii), the top-up amount of an investment subgroup entity of an investment subgroup in respect of an MNE group for a fiscal year is the amount determined under subsection 30 (1) applying the following rules: (a) any references in sections 29 to 32 and 34 to (i) “MNE group”, except the reference to that term in the expression “ultimate parent entity of the MNE group” in subsection 32 (15) which is to be read as a reference to “ultimate parent entity of the MNE group in which the investment subgroup is included”, are to be read as references to “investment subgroup”, (ii) “standard constituent entity” or “constituent entity” are to be read as references to “investment subgroup entity”, (iii) “GloBE income or loss”, except the references to that term in subsection 31 (1), paragraph 32 (3)(e) and subparagraph 32 (14)(d)(iii), are to be read as references to “investment entity GloBE income amount”, (iv) “GloBE income”, except the references to that term in paragraph 32 (5)(a) and subsection 32 (6), are to be read as references to “positive investment entity GloBE income amount”, (v) “GloBE loss” are to be read as references to “negative investment entity GloBE income amount”, (vi) “adjusted covered taxes”, except references to that term in subsection 31 (1), are to be read as references to “investment entity adjusted covered taxes amount”, (vii) “minority-owned subgroup” are to be read as references to “minority-owned investment subgroup”, and (viii) “minority-owned constituent entity (other than an investment entity or an insurance investment entity)” are to be read as references to “minority-owned investment entity”; (b) for greater certainty, all other amounts that are to be determined under sections 29 to 32 and 34 in determining the top-up amount of an investment subgroup entity of an investment subgroup are also to be determined applying the rules in paragraph (a); (c) the amounts that would, in the absence of this paragraph, be determined for A and B in the formula in subsection 32 (1) in respect of the investment subgroup entity are to be multiplied by the ratio determined by the formula A ÷ B where A is the investment entity GloBE income amount of the investment subgroup entity for the fiscal year, and B is the GloBE income or loss of the investment subgroup entity for the fiscal year; (d) despite paragraph (a), all references to “fiscal year” in sections 29 to 32 and 34 are to the fiscal year of the MNE group; and (e) any other modifications are made to sections 29 to 32 and 34 as the context requires. Interpretation rule (3) For the purposes of determining the top-up amount of an investment subgroup entity under subsection (2), subsection 21 (3) and sections 37 to 39 , 41 and 42 apply with such modifications, if any, as the context requires. Allocation of investment subgroup entity top-up amount (4) For the purposes of Division 1, the GloBE income of an investment subgroup entity of an investment subgroup that is located in a jurisdiction for a fiscal year, is (a) if the net GloBE income of the investment subgroup for the jurisdiction for the fiscal year, as computed in determining the top-up amount of the investment subgroup entity under subsection (2), is nil, the GloBE income that would be determined under subsection 15 (5) if the net GloBE income, and the allocated adjustment top-up amount and excess negative tax expense top-up amount of the investment subgroup entity, were the amounts computed in determining the top-up amount of the investment subgroup entity under subsection (2); and (b) in any other case, the GloBE income computed in determining the investment subgroup entity’s top-up amount under subsection (2). Subdivision H Eligible Distribution Tax Systems Deemed distribution tax — rules 37 (1) If the filing constituent entity of an MNE group elects, in respect of a jurisdiction that has an eligible distribution tax system, for a fiscal year (referred to in this subsection as the “election year”), (a) the jurisdictional adjusted covered taxes of the MNE group for the jurisdiction for the election year is deemed to be equal to the jurisdictional adjusted covered taxes determined without reference to this paragraph, plus an amount equal to the deemed distribution tax of the MNE group for the jurisdiction for the election year; (b) a deemed distribution tax recapture account of the MNE group must be established by the MNE group in respect of the jurisdiction for the election year, and (i) the account must be maintained and recorded by the MNE group, and (ii) a record of the account must be made available at the request of the Minister for examination or inspection by any person authorized by the Minister for that purpose; (c) subject to subsections (4) and (5), the outstanding balance of the deemed distribution tax recapture account is determined as follows: (i) at the end of the election year, the balance is increased by the amount of the deemed distribution tax of the MNE group for the jurisdiction for the election year, and (ii) at the end of each fiscal year (referred to in this paragraph as a “subsequent year”) following the election year, the outstanding balances of the deemed distribution tax recapture accounts in respect of the jurisdiction established for fiscal years preceding the subsequent year are reduced, but not below zero, in chronological order (A) first by the taxes recorded by any standard constituent entities of the MNE group that are located in the jurisdiction during the subsequent year in relation to an actual or deemed distribution of profits, (B) then by the amount of any net GloBE loss of the MNE group for the jurisdiction for the subsequent year multiplied by the minimum rate, and (C) then by the recapture account loss carry-forward of the MNE group for the jurisdiction for the subsequent year; and (d) any amount of tax recorded by a standard constituent entity of an MNE group in relation to an actual or deemed distribution of profits is not to be included in the adjusted covered taxes of that entity for any fiscal year to the extent that the amount is applied as a reduction under clause (c)(ii)(A) in determining the outstanding balance of any deemed distribution tax recapture account of the MNE group. Definition of deemed distribution tax (2) The deemed distribution tax , of an MNE group for a jurisdiction for a fiscal year, means the lesser of (a) the amount determined by the formula A × B − C × B where A is the minimum rate, B is the net GloBE income of the MNE group for the jurisdiction for the fiscal year, and C is the rate that would be the effective tax rate of the MNE group for the jurisdiction for the fiscal year if (i) it were determined without reference to this section, and (ii) paragraph 29 (1)(b) were read without reference to subparagraph (i) in the description of B in the formula in that paragraph and applied without reference to section 8 , and (b) the amount of tax that would be payable in respect of the standard constituent entities of the MNE group under the eligible distribution tax system of the jurisdiction for the fiscal year, if all the standard constituent entities of the MNE group that are located in the jurisdiction had distributed all of their income that was subject to the eligible distribution tax system during the fiscal year. Definition of recapture account loss carry-forward (3) The recapture account loss carry-forward , of an MNE group for a jurisdiction for a particular fiscal year, means the amount determined by the formula A − B where A is the total of all amounts each of which is determined by the formula C − D where C is the amount determined under clause (1)(c)(ii)(B) for the jurisdiction for any fiscal year preceding the particular fiscal year, and D is the total of all amounts each of which is the portion of the amount determined for C that was applied at the end of the preceding fiscal year referred to in the description of C as a reduction under clause (1)(c)(ii)(B) in determining the balance of a deemed distribution tax recapture account of the MNE group for the jurisdiction; and B is the total of all amounts each of which is the portion of a recapture account loss carry-forward of the MNE group for the jurisdiction for a fiscal year preceding the particular fiscal year that was applied as a reduction under clause (1)(c)(ii)(C) in determining the balance of a deemed distribution tax recapture account of the MNE group for the jurisdiction. ETR adjustment provision — four-year rule (4) If the outstanding balance of a deemed distribution tax recapture account of an MNE group in respect of a jurisdiction for a particular fiscal year is greater than nil at the end of the fourth fiscal year (referred to in this subsection as the “recapture year”) immediately following the particular fiscal year (a) this subsection applies in the recapture year; (b) for the purposes of applying subsection 31 (1), the jurisdictional adjusted covered taxes of the MNE group for the jurisdiction for the particular fiscal year (being the adjustment year) is deemed to be equal to the jurisdictional adjusted covered taxes, determined without reference to this subsection and subsection 31 (1), minus an amount equal to the outstanding balance of the deemed distribution tax recapture account at the end of the recapture year; and (c) for the purposes of applying subparagraph (1)(c)(ii), at the end of any fiscal year following the recapture year, the outstanding balance of the deemed distribution tax recapture account is deemed to be nil. ETR adjustment provision — departing constituent entity (5) In the fiscal year (referred to in this subsection as the “departure year”) in which a departing constituent entity of an MNE group that is located in a jurisdiction leaves the MNE group or transfers substantially all of its assets to a recipient that is not, at the time of the transfer, a standard constituent entity of the MNE group that is located in the jurisdiction (a) this subsection applies; (b) for the purposes of applying subsection 31 (1), the jurisdictional adjusted covered taxes of the MNE group for the jurisdiction for a fiscal year preceding the departure year (referred to in this subsection as a “pre-departure year”) for which the outstanding balance of the deemed distribution tax recapture account at the end of the departure year is greater than nil (each of those pre-departure years being an adjustment year), is deemed to be equal to the jurisdictional adjusted covered taxes for that pre-departure year, determined without reference to this subsection and subsection 31 (1), minus an amount (referred to in this subsection as a “recapture amount”) equal to the outstanding balance of the deemed distribution tax recapture account for that pre-departure year at the end of the departure year; and (c) for the purposes of applying this Act at any time after the departure year, each of the outstanding balance of the deemed distribution tax recapture account at the end of the departure year, net GloBE income, jurisdictional adjusted covered taxes and substance-based income exclusion amount of the MNE group for the jurisdiction for a pre-departure year that is an adjustment year is deemed to be the amount determined without reference to this paragraph (referred to in this paragraph as “the amount otherwise determined”), minus the product obtained by multiplying the amount otherwise determined by the disposition recapture ratio of the departing constituent entity for the pre-departure year. Definition of disposition recapture ratio (6) The disposition recapture ratio of a departing constituent entity of an MNE group for a jurisdiction for a fiscal year means the lesser of (a) 1; and (b) the amount determined by the formula A ÷ B where A is the GloBE income of the departing constituent entity for the fiscal year, and B is the net GloBE income of the MNE group for the jurisdiction for the fiscal year. Division 5 Reorganizations and Asset Transfers Constituent entities joining and leaving MNE group 38 (1) Subject to subsection (2), if an entity (referred to in this subsection as the “transferred entity”) ceases to be a constituent entity of an MNE group (referred to in this subsection as the “MNE group” or the “disposing MNE group”), or becomes a constituent entity of an MNE group (referred to in this subsection as the “MNE group” or the “acquiring MNE group”) — including where the entity becomes the ultimate parent entity of an MNE group — as a result of a transfer, in a fiscal year (referred to in this section as the “transfer year”) of the MNE group, of ownership interests in the transferred entity or in another entity that holds, directly or indirectly, an ownership interest in the transferred entity, the following rules apply: (a) the transferred entity is to be treated as a constituent entity of the MNE group for the transfer year, if any portion of the transferred entity’s assets, liabilities, income, expenses or cash flows is included on a line-by-line basis in the consolidated financial statements of the ultimate parent entity of the MNE group for the fiscal year; (b) any portion of the transferred entity’s financial accounting income and adjusted covered taxes that is not taken into account in the consolidated financial statements of the ultimate parent entity of the MNE group for the transfer year is not to be taken into account in determining any amount under this Act in respect of the MNE group for the transfer year; (c) the transferred entity’s GloBE income or loss and adjusted covered taxes, for the transfer year and any subsequent fiscal years, is to be determined using its historical carrying value of its assets and liabilities; (d) in determining, under subsection 32 (1), the substance-based income exclusion amount of the MNE group for the jurisdiction in which the transferred entity is located for the transfer year, (i) any portion of the transferred entity’s eligible payroll costs that is not taken into account in the preparation of the consolidated financial statements of the ultimate parent entity of the MNE group for the transfer year is not to be taken into account, and (ii) the eligible tangible asset amount of the transferred entity for the transfer year is not to exceed the amount determined by the formula A × B ÷ C where A is the amount that would be the transferred entity’s eligible tangible asset amount for the transfer year as determined under subsection 32 (9) if that subsection were applied without reference to this subparagraph, B is (A) if the MNE group is an acquiring MNE group, the total number of days in the transfer year less the number of days in the transfer year preceding and including the day on which the disposition occurred, and (B) if the MNE group is a disposing MNE group, the total number of days in the transfer year less the number of days in the transfer year following the day on which the disposition occurred, and C is the total number of days in the transfer year; (e) deferred tax assets (other than GloBE loss deferred tax assets) and deferred tax liabilities of the transferred entity that arose, and did not reverse, before the transfer are to be taken into account, in the transfer year and any subsequent fiscal years, in determining amounts under this Act in respect of the acquiring MNE group, in the same manner and to the same extent as if the ultimate parent entity of the acquiring MNE group had a controlling interest in respect of the transferred entity in the period that (i) began with the time at which the deferred tax asset or deferred tax liability arose, and (ii) ended at the time of the transfer; (f) for the purposes of applying section 25 in determining the transferred entity’s total deferred tax adjustment amount, (i) any deferred tax liability (referred to in this paragraph as the “transferred deferred tax liability”) that was taken into account in determining the transferred entity’s total deferred tax adjustment amount for a fiscal year in respect of the disposing MNE group and that has not reversed in or before the transfer year the transfer, is deemed (A) in respect of the disposing MNE group, to reverse in the group’s fiscal year immediately preceding the transfer year, and (B) in respect of the acquiring MNE group, to have arisen in, and been included in determining the transferred entity’s total deferred tax adjustment amount for, the transfer year, and (ii) if the transferred deferred tax liability does not reverse in any of the five fiscal years of the acquiring MNE group immediately following the transfer year, the reduction in adjusted covered taxes under subsection 25 (6) in respect of the recapture of the transferred deferred tax liability is to be applied in the fifth fiscal year immediately following the transfer year instead of in the transfer year; and (g) if the transferred entity is a relevant parent entity of two or more qualifying MNE groups for the transfer year, the transferred entity is to apply sections 14 and 18 separately in respect of each of those MNE groups for the transfer year. Transfers treated as transfers of assets and liabilities — application (2) Despite subsection (1), the acquisition or disposition by a constituent entity of an MNE group of a controlling interest in another entity (referred to in this subsection as the “transferred entity”) is to be treated as an acquisition or disposition, as the case may be, of the assets and liabilities of the transferred entity for the purposes of section 39 , if (a) the disposition — or the disposition giving rise to the acquisition, as the case may be — is treated in the same or substantially similar manner as a disposition of the transferred entity’s assets and liabilities under the laws of (i) if the transferred entity is a tax transparent entity at the time of the disposition, the jurisdiction in which the assets of the transferred entity are located, or (ii) in any other case, the jurisdiction in which the transferred entity is located; and (b) the jurisdiction referred to in subparagraph (a)(i) or (ii), as the case may be, imposes a covered tax on the transferor in respect of the disposition — or the disposition giving rise to the acquisition, as the case may be — that is calculated by reference to the amount by which the consideration paid or payable on the disposition, or the fair value of the assets and liabilities, exceeds the transferred entity’s tax basis in respect of the assets and liabilities. Acquisitions and dispositions of assets and liabilities — no GloBE reorganization 39 (1) If a constituent entity of an MNE group disposes of or acquires assets and liabilities (other than in the course of a GloBE reorganization) in a fiscal year, (a) in the case of a disposition, any gain or loss on the disposition is to be included in determining the disposing constituent entity’s GloBE income or loss for the year; and (b) in the case of an acquisition, the GloBE income or loss of the acquiring constituent entity is to be determined using (i) if subsection 38 (2) applies to treat the acquiring constituent entity as having acquired the assets and liabilities, the fair value of the assets and liabilities, and (ii) in any other case, the acquiring constituent entity’s carrying value of the acquired assets and liabilities immediately after the acquisition, determined under the accounting standard used in preparing the consolidated financial statements of the ultimate parent entity of the MNE group. Transfers of assets and liabilities — GloBE reorganization (2) If a constituent entity of an MNE group disposes of or acquires assets and liabilities in a fiscal year in the course of a GloBE reorganization (a) in the case of a disposition, in computing the disposing constituent entity’s GloBE income or loss for the fiscal year, (i) if the disposition gives rise to a non-qualifying gain or loss, the non-qualifying gain or loss is to be included, and (ii) in any other case, any gain or loss on the disposition is to be excluded; and (b) in the case of an acquisition, the acquiring constituent entity’s GloBE income or loss for the fiscal year and each subsequent fiscal year is to be determined using the disposing constituent entity’s carrying values of the assets and liabilities immediately before the disposition, adjusted, in a manner consistent with the income tax laws of the jurisdiction in which the acquiring constituent entity is located, to take into account any non-qualifying gain or loss arising from the disposition. Election to adjust assets and liabilities to fair value (3) If the filing constituent entity elects for a particular fiscal year in respect of a particular constituent entity of the MNE group that is required or permitted, under the income tax laws of the jurisdiction where it is located, to adjust the basis of its assets or the amount of its liabilities (referred to in this subsection as “adjusted assets” and “adjusted liabilities”) for tax purposes to fair value in the particular fiscal year as a result of a transaction or event (referred to in this subsection as the “triggering event”), other than a triggering event that is a sale of assets in the ordinary course of a business or the application of a transfer pricing provision under the income tax laws, the following rules apply: (a) the fair value for financial accounting purposes of an adjusted asset or adjusted liability immediately after the triggering event is to be used in determining the particular constituent entity’s GloBE income or loss for the particular fiscal year and each subsequent fiscal year; (b) for the purposes of determining the particular constituent entity’s GloBE income or loss, the particular constituent entity’s (i) gain, if any, in respect of an adjusted asset or adjusted liability is the amount determined by the formula A − B − C where A is the fair value of the asset or liability immediately after the triggering event, B is the carrying value of the asset or liability for financial accounting purposes immediately before the triggering event, and C is the non-qualifying gain, if any, in respect of the asset or liability arising in connection with the triggering event, and (ii) loss, if any, in respect of an adjusted asset or adjusted liability is the amount determined by the formula B − A − D where D is the non-qualifying loss, if any, in respect of the asset or liability arising in connection with the triggering event; (c) the net total amount of the gains and losses determined under paragraph (b) is to be (i) included in computing the particular constituent entity’s GloBE income or loss for the particular fiscal year, or (ii) divided into five equal amounts to be included in computing the particular constituent entity’s GloBE income or loss for the particular fiscal year and the four immediately following fiscal years; and (d) if subparagraph (c)(ii) applies and the particular constituent entity leaves the MNE group in any of the five fiscal years referred to in that subparagraph, any portion of the net total amount referred to in paragraph (c) that has not been included in computing the particular constituent entity’s GloBE income or loss for a previous fiscal year is to be included in computing its GloBE income or loss for the final fiscal year in which it was a constituent entity of the MNE group. Division 6 Multi-Parented MNE Groups Multi-parented MNE group rules 40 (1) Except for this section and subparagraph 14 (3)(c)(ii), the following rules apply in respect of a multi-parented MNE group: (a) all the entities of all the groups (referred to in this section as the “constituent groups”) constituting the multi-parented MNE group are deemed to be entities of a single MNE group that is the multi-parented MNE group; (b) all the entities (other than excluded entities) of all the constituent groups are deemed to be constituent entities of the single MNE group; (c) references to the “consolidated financial statements” of an ultimate parent entity in this Act are to be read as references to the financial statements described in either paragraph (f) of the definition dual-listed arrangement , or paragraph (c) of the definition stapled structure , in subsection 2 (1), as applicable, and the financial accounting standard used in the preparation of those financial statements is deemed to be the accounting standard of the ultimate parent entities of each of the constituent groups; (d) the ultimate parent entity of each constituent group is deemed to be an ultimate parent entity of the single MNE group; and (e) references to “ultimate parent entity” in this Act are to be read as references to all of the ultimate parent entities of the constituent groups, as the context requires. Deemed group entities (2) If a particular entity would be included in a particular constituent group of a multi-parented MNE group if all the ownership interests in the particular entity held by group entities of the constituent groups of the multi-parented MNE group were held by a single group entity (other than the particular entity) of the particular constituent group, the particular entity is deemed (a) for the purposes of subsection (1) and subsection 11 (1), to be included in the particular constituent group; and (b) for the purposes of section 35 , not to be a joint venture or a joint venture subsidiary in respect of any of the constituent groups of the multi-parented MNE group. Division 7 Elections in Relation to Investment Entities Subdivision A Tax Transparency Election Investment entity tax transparency election 41 (1) A constituent entity, of an MNE group, that is an investment entity or an insurance investment entity is deemed to be a flow-through entity that is a tax transparent entity in relation to a constituent entity-owner of the constituent entity, if (a) the filing constituent entity of the MNE group elects in respect of the constituent entity-owner under this subsection; and (b) either (i) both of the following conditions are met: (A) the constituent entity-owner is subject to tax in the jurisdiction where it is located under a mark-to-market or similar regime based on the annual changes in fair value of its ownership interest in the constituent entity, and (B) under that regime, the tax rate applicable to the constituent entity-owner with respect to those annual changes in fair value is greater than or equal to the minimum rate, or (ii) the constituent entity-owner is a mutual insurance company. Indirect constituent entity-owners (2) For the purposes of clause (1)(b)(i)(A), a constituent entity-owner is deemed to be subject to tax in the jurisdiction where it is located under a mark-to-market or similar regime with respect to its indirect ownership interest in an investment entity or an insurance investment entity, if the constituent entity-owner (a) holds that ownership interest through one or more other investment entities or insurance investment entities; and (b) is subject to tax in the jurisdiction where it is located under a mark-to-market or similar regime with respect to all its direct ownership interests in any entity described in paragraph (a). Five-year election (3) The following rules apply in respect of an election made under subsection (1): (a) the election is a five-year election; and (b) if the election is revoked at any time, for the purpose of determining the GloBE income or loss of the investment entity or insurance investment entity in respect of which the election was made after that time, any gain or loss from the disposition after that time of an asset or liability held by the entity is to be determined based on (i) if the entity’s assets and liabilities are accounted for on a fair value basis, the fair value of the asset or liability on the first day of the fiscal year in which the disposition occurs, and (ii) in any other case, the fair value of the asset or liability on the first day of the revocation year. Subdivision B Taxable Distribution Method Election Definitions 42 (1) The following definitions apply in this section. qualifying owner , of an investment entity, means an entity if (a) the entity (i) is a group entity in respect of the investment entity, (ii) is not an investment entity, and (iii) holds an ownership interest in the investment entity; and (b) it can reasonably be expected that the aggregate of the tax payable by the entity in respect of distributions from the investment entity and the tax payable by the entity in respect of the distributed profits is equal to or greater than the amount of the distributions multiplied by the minimum rate. ( détenteur admissible ) testing period  in respect of the undistributed net GloBE income of an investment entity for a tested year, means the tested year and (a) if any of the three fiscal years immediately following the tested year is a revocation year, any fiscal years following the tested year that precede the revocation year; and (b) in any other case, the three fiscal years immediately following the tested year. ( période de test ) undistributed net GloBE income , of an investment entity for a tested year, means the amount determined by the formula A − B where A is the investment entity’s GloBE income for the tested year (which, for greater certainty, does not include any amount deemed to be included in the investment entity’s GloBE income for that tested year because of clause (2)(d)(i)(A) or (2)(e)(i)(A)); and B is the total of all amounts, other than to the extent the amounts are taken into account as reductions in computing the undistributed net GloBE income of the investment entity for a previous tested year, each of which is (a) covered taxes paid or payable by the investment entity for the tested year, (b) a distribution or deemed distribution by the investment entity that is received by shareholders (other than other investment entities) in the testing period in respect of the tested year, (c) the investment entity’s GloBE loss for a fiscal year within the testing period in respect of the tested year, or (d) a GloBE loss of the investment entity for an election year that precedes the tested year, to the extent the loss was not taken into account as a reduction in computing the investment entity’s undistributed net GloBE income for any tested year preceding the tested year. ( revenu GloBE net non distribué ) Taxable distribution method election (2) If the filing constituent entity elects under this section in respect of a qualifying owner’s ownership interest in an investment entity or insurance investment entity (referred to in this section as the “investment entity”) and an election under subsection 41 (1) is not in effect in relation to that ownership interest, the following rules apply in respect of fiscal years to which the election applies (each referred to in this section as an “election year” or a “tested year”): (a) the election is a five-year election; (b) distributions and deemed distributions of amounts out of the investment entity’s GloBE income for an election year are included in computing the GloBE income or loss of the qualifying owner for the election year in which it receives the distribution; (c) any amount in respect of covered taxes paid or payable by the investment entity that is allowed as a credit against the tax liability of the qualifying owner, in respect of a distribution from the investment entity, arising in an election year is included for that election year in computing the qualifying owner’s (i) GloBE income or loss, and (ii) adjusted covered taxes; (d) for the particular election year that is the third fiscal year immediately following a tested year (i) for the purposes of subsection 15 (3), the GloBE income of the investment entity for the particular election year is deemed to be equal to the total of all amounts, each of which is (A) the proportionate share — of a qualifying owner in respect of whose ownership interest in the investment entity an election under this subsection applies — of the investment entity’s undistributed net GloBE income for the tested year, and (B) the GloBE income, if any, of the investment entity for the particular election year attributable to any ownership interests in the investment entity in respect of which an election under this subsection does not apply, and (ii) the top-up amount of the investment entity for the particular election year, determined in the absence of this subparagraph, is increased by the amount determined by the formula A × B where A is the total of all amounts described in clause (i)(A), and B is the minimum rate; (e) if the election is revoked, (i) for the purposes of subsection 15 (3), the GloBE income of the investment entity for the revocation year is deemed to be equal to the total of all amounts, each of which is (A) the proportionate share — of a qualifying owner in respect of whose ownership interest in the investment entity an election under this subsection applies — of the investment entity’s undistributed net GloBE income for any of the three tested years immediately preceding the revocation year, and (B) the GloBE income, if any, of the investment entity for the revocation year attributable to any ownership interests in the investment entity in respect of which an election under this subsection does not apply, and (ii) the top-up amount of the investment entity for the revocation year, determined in the absence of this subparagraph, is increased by the amount determined by the formula A × B where A is the total of all amounts described in clause (i)(A), and B is the minimum rate; and (f) the investment entity’s GloBE income or loss for an election year that is attributable to any ownership interests in respect of which an election under this subsection applies, and any adjusted covered taxes in respect of that GloBE income or loss, are excluded from all computations of effective tax rates and top-up amounts under this Act, other than as provided in paragraphs (c) to (e). Deemed distribution — transfer of ownership interest (3) For the purposes of this section, if, in an election year, a qualifying owner (referred to in this subsection as the “transferor”) transfers an ownership interest in an investment entity in respect of which an election under subsection (2) applies to a person that is not a group entity in respect of the transferor, (a) the transfer is treated as a deemed distribution by the investment entity to the transferor; and (b) the amount of the deemed distribution is the amount determined by the formula A × B ÷ C where A is the total of all amounts, each of which is the transferor’s proportionate share of the investment entity’s undistributed net GloBE income (determined without reference to the deemed distribution), immediately before the transfer, for a tested year that is any of the three fiscal years immediately preceding the transfer year, B is the value of the transferred ownership interest, and C is the total value of all the ownership interests in the investment entity. Division 8 Safe Harbours Subdivision A Permanent Safe Harbours Definitions 43 The following definitions apply in this Subdivision. non-material constituent entity  means a particular constituent entity of an MNE group, or a permanent establishment of the particular constituent entity, if (a) the particular constituent entity’s assets, liabilities, income, expenses and cash flows are not included in the ultimate parent entity’s consolidated financial statements; (b) the consolidated financial statements are (i) described in paragraph (a) or (c) of the definition consolidated financial statements in subsection 2 (1), and (ii) externally audited and the accompanying auditor’s opinion does not contain objections or qualifications in relation to the exclusion of the particular constituent entity from the consolidation perimeter; and (c) where the total revenue, as reported on the MNE group’s country-by-country report, that is attributable to the particular constituent entity for a fiscal year is greater than €50 million, the financial accounts that are used to complete the MNE group’s country-by-country report are prepared in accordance with an acceptable financial accounting standard or authorized financial accounting standard. ( entité constitutive non matérielle ) relevant country-by-country reporting regulations , in respect of an MNE group, means (a) the country-by-country reporting requirements of (i) if the country-by-country report is filed by the ultimate parent entity of the MNE group, the jurisdiction where the ultimate parent entity is located, or (ii) if the country-by-country report is filed by the surrogate parent entity of the MNE group (as defined in the OECD final report referred to in paragraph (b)), the jurisdiction where the surrogate parent entity is located; or (b) in any other case, the Transfer Pricing Documentation and Country-by-Country Reporting, Action 13 - 2015 Final Report , published by the OECD on October 5, 2015 and the Guidance on the Implementation of Country-by-Country Reporting: BEPS Action 13 , published by the OECD in October 2022, as amended from time to time. ( règlements pertinents en matière de déclaration pays par pays ) simplified income , of a non-material constituent entity of an MNE group for a fiscal year, means (a) if an election is made under section 46 for the fiscal year, the amount determined under paragraph 46 (a) for the fiscal year; and (b) in any other case, the non-material constituent entity’s GloBE income or loss for the fiscal year. ( résultat net simplifié ) simplified revenue , of a non-material constituent entity of an MNE group for a fiscal year, means (a) if an election is made under section 46 for the fiscal year, the amount determined under paragraph 46 (a) for the fiscal year; and (b) in any other case, the non-material constituent entity’s financial accounting revenue for the fiscal year. ( chiffre d’affaires simplifié ) simplified tax , of a non-material constituent entity of an MNE group for a fiscal year, means (a) if an election is made under section 46 for the fiscal year, the amount determined under paragraph 46 (b) for the fiscal year; and (b) in any other case, the non-material constituent entity’s adjusted covered taxes for the fiscal year. ( impôt simplifié ) Qualified domestic minimum top-up tax safe harbour 44 The top-up amount of a particular constituent entity of an MNE group or particular joint venture entity in respect of an MNE group (referred to in this section as the “particular entity”) is deemed to be nil for a fiscal year, if (a) the particular entity is (i) located in a jurisdiction that has a qualified domestic minimum top-up tax for the fiscal year, or (ii) a stateless entity the top-up amount of which is subject to such a tax in a jurisdiction; (b) the jurisdiction’s qualified domestic minimum top-up tax has qualified domestic minimum top-up tax safe harbour status (including transitional qualified status) for the fiscal year as determined by the Inclusive Framework and published on the website of the OECD; (c) the filing constituent entity of the MNE group is permitted to elect, in accordance with chapter 5.1 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two) July 2023 , published by the OECD on July 13, 2023, as amended from time to time, the qualified domestic minimum top-up tax safe harbour for the fiscal year in respect of the particular entity; and (d) the filing constituent entity of the MNE group elects to apply the qualified domestic minimum top-up tax safe harbour for the fiscal year in respect of the particular entity. Simplified calculations safe harbour 45 The top-up amount of each standard constituent entity of an MNE group that is located in a jurisdiction for a particular fiscal year is deemed to be the amount that would be its top-up amount if the top-up percentage that is relevant in calculating that top-up amount were nil, if (a) all of the standard constituent entities of the MNE group that are located in the jurisdiction for the particular fiscal year are non-material constituent entities; (b) the filing constituent entity of the MNE group elects the simplified calculations safe harbour for the jurisdiction for a particular fiscal year; and (c) at least one of the following tests is met, in respect of the MNE group, for the jurisdiction in the particular fiscal year: (i) the de minimis threshold test described in subsection 47 (3), where (A) the reference to “total revenues of the MNE group for the jurisdiction for the year” in paragraph 47 (3)(a) is read as a reference to “total of all amounts each of which is the simplified revenue of a non-material constituent entity of the MNE group that is located in the jurisdiction for the fiscal year”, and (B) the reference to “profit (loss) before income tax of the MNE group for the jurisdiction for the year” in paragraph 47 (3)(b) is read as a reference to “total of all amounts each of which is the simplified income of a non-material constituent entity of the MNE group that is located in the jurisdiction for the fiscal year”, (ii) the simplified effective tax rate test described in subsection 47 (4), where (A) paragraphs 47 (4)(a), (b) and (c) are read as “at least 15%”, and (B) the simplified effective tax rate of the non-material constituent entities of the MNE group that are located in the jurisdiction for the particular fiscal year under subsection 47 (5) is the amount that it would be if (I) the reference to “qualifying income tax expense” in the description of A in that subsection were read as a reference to “simplified tax”, and (II) the reference to “the profit (loss) before income tax of the MNE group for the jurisdiction for the fiscal year” in the description of B in that subsection were read as a reference to “the total of all amounts each of which is the simplified income of a non-material constituent entity of the MNE group that is located in the jurisdiction for the fiscal year”, or (iii) the routine profits test described in subsection 47 (6), where (A) the reference to “qualified substance-based income exclusion” in paragraph 47 (6)(a) is read as a reference to “substance-based income exclusion”, and (B) the references to “profit (loss) before income tax of the MNE group for the jurisdiction for the year” in paragraphs 47 (6)(a) and (b) are read as references to “total of all amounts each of which is the simplified income of a non-material constituent entity of the MNE group that is located in the jurisdiction for the fiscal year”. Non-material constituent entities 46 If the filing constituent entity of an MNE group elects in respect of a non-material constituent entity for a fiscal year, for the purposes of section 45 (a) the simplified income and simplified revenue of the non-material constituent entity are equal to the portion of the total revenues of the MNE group for the jurisdiction in which the non-material constituent entity is located, as determined in accordance with the relevant country-by-country reporting regulations, that is attributable to the non-material constituent entity for the fiscal year; and (b) the simplified tax of the non-material constituent entity is equal to the portion of the income tax accrued (current year) of the MNE group for the jurisdiction in which the non-material constituent entity is located, as determined in accordance with the relevant country-by-country reporting regulations, that is attributable to the non-material constituent entity for the fiscal year. Subdivision B Transitional Safe Harbours Definitions — transitional CbCR safe harbour 47 (1) The following definitions apply in this section. deduction/non-inclusion arrangement  means an arrangement entered into after December 15, 2022 under which a particular constituent entity of an MNE group directly or indirectly provides credit to, or otherwise makes an investment in, another constituent entity of the MNE group that results in an expense or loss in the financial statements of any constituent entity, to the extent that (a) there is no commensurate increase in the revenue or gain in the financial statements of the particular constituent entity; (b) the particular constituent entity is not reasonably expected over the life of the arrangement to have a commensurate increase in its taxable income; and (c) the expense or loss is not solely in respect of qualifying tier one capital issued pursuant to regulatory requirements applicable to the banking sector. ( accord de déduction/non-inclusion ) duplicate loss arrangement  means an arrangement entered into after December 15, 2022 that results in an expense or loss being included in the financial statements of a constituent entity of an MNE group, to the extent that (a) the expense or loss is also included as an expense or loss in the financial statements of another constituent entity of the MNE group; or (b) the arrangement also gives rise to a duplicate amount that is deductible for purposes of determining the taxable income of another constituent entity of the MNE group that is located in a different jurisdiction from the first constituent entity. ( accord de duplication de perte ) duplicate tax recognition arrangement  means an arrangement entered into after December 15, 2022 that results in each of two or more constituent entities of an MNE group including all or any portion of the same income tax expense in its adjusted covered taxes or qualifying income tax expense, unless the arrangement (a) also results in the income subject to tax being included in the relevant financial statements of each of those constituent entities; or (b) would, in the absence of this paragraph, be a duplicate tax recognition arrangement solely because, in computing the simplified effective tax rate of the standard constituent entities of the MNE group that are located in a jurisdiction in a fiscal year under subsection (5), no adjustments are required in respect of income tax expenses that would otherwise be allocated to another constituent entity in determining its adjusted covered taxes. ( accord de duplication de dépense fiscale ) net unrealized fair value loss  means the total of all amounts each of which is the loss of a standard constituent entity of an MNE group that is located in a jurisdiction arising from changes in fair value of ownership interests (other than portfolio holdings), as reduced by the total amount of gains of such entities arising from such changes. ( perte nette non réalisée de la juste valeur ) profit (loss) before income tax , of an MNE group for a jurisdiction for a fiscal year, means profit (loss) before income tax in the jurisdiction as reported on the MNE group’s qualified country-by-country report (or that would have been so reported if the MNE group had been required to file a country-by-country report), that is attributable to standard constituent entities, adjusted to (a) exclude any net unrealized fair value loss in the jurisdiction that exceeds €50 million; and (b) add back any amount recorded as a reduction in income in the financial accounts of a standard constituent entity that is attributable to an impairment of goodwill related to any transaction entered into after November 30, 2021, for the purposes of applying (i) the routine profits test under subsection (6), and (ii) the simplified effective tax rate test under subsection (4), if the financial accounts of the standard constituent entity do not also have a reversal of a deferred tax liability, or recognition or increase of a deferred tax asset, in respect of the impairment of goodwill. ( bénéfice (perte) avant impôts ) qualified country-by-country report , in respect of an MNE group, means a country-by-country report for a jurisdiction for a fiscal year that (a) is filed in accordance with the relevant country-by-country reporting regulations (as defined in section 43 ); (b) is prepared on the basis of qualified financial statements of the standard constituent entities of the MNE group for the jurisdiction for the fiscal year; and (c) in the case of a multi-parented MNE group, includes the information of all constituent entities of the multi-parented MNE group. ( déclaration pays par pays admissible ) qualified financial statements , of the standard constituent entities of an MNE group that are located in a jurisdiction for a particular fiscal year, means the financial accounts or financial statements of the standard constituent entities, if (a) the financial accounts or financial statements are (i) used to prepare the consolidated financial statements of the ultimate parent entity for the particular fiscal year, (ii) prepared in accordance with an acceptable financial accounting standard or authorized financial accounting standard, if the information contained in those statements is maintained based on that accounting standard and is reliable, (iii) if a standard constituent entity is not included in the consolidated financial statements of the MNE group on a line-by-line basis solely due to size or materiality grounds, the financial accounts of the standard constituent entity that are used for preparation of the MNE group’s country-by-country report, or (iv) if a standard constituent entity is a permanent establishment that does not have separate financial accounts described in subparagraph (i) or separate financial statements described in subparagraph (ii), the separate financial statements prepared by the main entity for the permanent establishment for financial reporting, regulatory, tax reporting or internal management control purposes; and (b) either (i) the financial accounts or statements do not incorporate purchase price accounting adjustments, or (ii) where the financial accounts or financial statements of one or more of the standard constituent entities incorporate purchase price accounting adjustments, it is the case that (A) the MNE group has not submitted a country-by-country report for a fiscal year beginning after December 31, 2022 and before the particular fiscal year that was based on the standard constituent entity’s financial accounts or financial statements without the purchase price accounting adjustments, or (B) the standard constituent entity was required by law or regulation to change its financial accounts or financial statements to include purchase price accounting adjustments for a fiscal year beginning after December 31, 2022 and that precedes or is the particular fiscal year. ( états financiers admissibles ) qualified person  means (a) in respect of an ultimate parent entity that is a flow-through entity, a holder described in any of paragraphs 20 (1)(a) to (c); and (b) in respect of an ultimate parent entity that is subject to a deductible dividend regime, a dividend recipient described in any of paragraphs 21 (1)(a) to (c). ( personne admissible ) qualified substance-based income exclusion amount , of an MNE group for a jurisdiction for a fiscal year, means the substance-based income exclusion amount of the MNE group for the jurisdiction for the fiscal year determined without regard to the eligible payroll costs and eligible tangible asset amount of any standard constituent entity of the MNE group that is located in the jurisdiction that, for the purposes of the group’s qualified country-by-country report (a) is not regarded as a constituent entity of the MNE group; or (b) is not regarded as located in the jurisdiction. ( montant de l’exclusion de revenus fondée sur la substance admissible ) qualifying income tax expense  means the income tax expense as reported on the qualified financial statements of a standard constituent entity of an MNE group, adjusted to exclude (a) any amount that does not relate to covered taxes; and (b) any amount that relates to uncertain tax positions. ( charges d’impôts admissibles ) total revenues , of an MNE group for a jurisdiction for a fiscal year, means total revenues in the jurisdiction as reported on the MNE group’s qualified country-by-country report (or that would have been so reported if the MNE group had been required to file a country-by-country report), that are attributable to standard constituent entities, adjusted to include the revenues of constituent entities of the MNE group that are held for sale and are not already included. ( recettes totales ) Election — transitional CbCR safe harbour (2) If the filing constituent entity of an MNE group elects the transitional safe harbour for a jurisdiction for a particular fiscal year, the top-up amount of each standard constituent entity of the MNE group that is located in the jurisdiction for the particular fiscal year is deemed to be nil, if (a) the particular fiscal year begins before January 1, 2027 and ends before July 1, 2028; (b) either (i) a qualified country-by-country report in respect of the MNE group has been filed in relation to the jurisdiction for the particular fiscal year, or (ii) if the MNE group is not required to file a country-by-country report, the filing constituent entity files a GIR, in respect of the MNE group for the particular fiscal year, and completes section 2.2.1.3(a) of the GIR, in relation to the jurisdiction for the particular fiscal year, using the data from qualified financial statements that would have been reported as total revenues and profit (loss) before income tax in a qualified country-by-country report; (c) the election has been made in respect of the jurisdiction for each preceding fiscal year in which a constituent entity of, or joint venture entity in respect of, the MNE group that is located in the jurisdiction is subject to a qualified IIR, qualified UTPR or qualified domestic minimum top-up tax; (d) an election under subsection 37 (1) has not been made by the MNE group in respect of the jurisdiction for the particular fiscal year; (e) at least one of the following tests is met, in respect of the MNE group, for the jurisdiction in the particular fiscal year: (i) the de minimis threshold test, (ii) the simplified effective tax rate test, or (iii) the routine profits test; (f) all of the data used to perform the computations under subsections (3) to (6) for all of the standard constituent entities of the MNE group that are located in the jurisdiction for the particular fiscal year (other than any non-material constituent entities or permanent establishments) comes from qualified financial statements described in subparagraph (a)(i) of the definition qualified financial statements in subsection (1), or from qualified financial statements described in subparagraph (a)(ii) of that definition; and (g) any payment received or receivable by a particular standard constituent entity located in the jurisdiction for the fiscal year from another constituent entity of the MNE group that is treated as an expense in the qualified financial statements of the other constituent entity for the fiscal year is included, for the purposes of applying the transitional safe harbour, in the total revenues and profit (loss) before income tax of the MNE group for the jurisdiction where the particular standard constituent entity is located for the fiscal year. De minimis threshold test (3) The de minimis threshold test is met, in respect of an MNE group for a jurisdiction in a fiscal year, if (a) the total revenues of the MNE group for the jurisdiction for the year is less than €10 million; and (b) the profit (loss) before income tax of the MNE group for the jurisdiction for the year is less than €1 million. Simplified effective tax rate test (4) The simplified effective tax rate test is met, in respect of an MNE group for a jurisdiction in a fiscal year, if the simplified effective tax rate of the standard constituent entities of the MNE group that are located in that jurisdiction is (a) in the case of a fiscal year beginning before January 1, 2025, at least 15%; (b) in the case of a fiscal year beginning in 2025, at least 16%; or (c) in the case of a fiscal year beginning after December 31, 2025, at least 17%. Simplified effective tax rate (5) The simplified effective tax rate of the standard constituent entities of an MNE group that are located in a jurisdiction in a fiscal year is the result (expressed as a percentage rounded to four decimal points) of the formula A ÷ B where A is the total of all amounts each of which is the qualifying income tax expense of a standard constituent entity of the MNE group that is located in the jurisdiction for the fiscal year; and B is the profit (loss) before income tax of the MNE group for the jurisdiction for the fiscal year. Routine profits test (6) The routine profits test is met, in respect of an MNE group for a jurisdiction in a fiscal year, if (a) the qualified substance-based income exclusion amount for the jurisdiction for the year is equal to or greater than the profit (loss) before income tax of the MNE group for the jurisdiction for the year; or (b) the profit (loss) before income tax of the MNE group for the jurisdiction for the year is nil or reflects an overall loss. Application to joint ventures (7) For the purposes of applying this section to a joint venture or joint venture group (a) subsection (2) is to be read without reference to its paragraph (b); (b) references to “MNE group” are to be read as references to “joint venture group”, other than in the expression “filing constituent entity of an MNE group”, paragraphs (2)(c) and (d) and subsection (8); (c) references to “standard constituent entity” are to be read as references to “joint venture entity”, other than in subsection (8); (d) references to “MNE group’s qualified country-by-country report” are to be read as references to “joint venture group’s qualified financial statements”; (e) in applying the definition qualified financial statements in subsection (1) in relation to the joint venture group (i) the reference to “ultimate parent entity” in subparagraph (a)(i) of that definition is to be read as a reference to “joint venture”, and (ii) the reference to “the financial accounts of the standard constituent entity that are used for preparation of the MNE group’s country-by-country report” in subparagraph (a)(iii) of that definition is to be read as a reference to “the financial accounts of the joint venture entity that would be used if a qualified country-by-country report had been prepared in respect of the joint venture group”; and (f) the definition qualified substance-based income exclusion amount in subsection (1) is to be read as “means the substance-based income exclusion amount of the joint venture group for the jurisdiction for the fiscal year”. Application to minority-owned constituent entities (8) For the purposes of this section, a minority-owned constituent entity is treated as a standard constituent entity of an MNE group. Tax-neutral ultimate parent entities (9) No election may be made under subsection (2) in respect of the jurisdiction where the ultimate parent entity of an MNE group is located for a fiscal year if (a) the ultimate parent entity is a flow-through entity; and (b) it is not the case that all the ownership interests in the ultimate parent entity are held by qualified persons. Tax-neutral ultimate parent entities — adjustments (10) If an ultimate parent entity of an MNE group is a flow-through entity or subject to a deductible dividend regime, (a) the profit (loss) before income tax of the MNE group for the jurisdiction where the ultimate parent entity is located is to be adjusted to exclude any profit (loss) before income tax of the ultimate parent entity to the extent that such amount is (i) attributable to an ownership interest held by a qualified person, or (ii) distributed in respect of an ownership interest held by a qualified person; and (b) the qualifying income tax expense of any constituent entity of the MNE group is adjusted to exclude any taxes in respect of the profit (loss) before income tax that is excluded under paragraph (a). Investment entities as standard constituent entities (11) For the purposes of this section, an investment entity or insurance investment entity is treated as a standard constituent entity of an MNE group for a fiscal year, if (a) the investment entity is included in the MNE group; (b) all the constituent entities of the MNE group with direct ownership interests in the investment entity or insurance investment entity are located in the same jurisdiction as the investment entity or insurance investment entity; and (c) no election under subsection 41 (1) or 42 (2) is in effect in respect of the investment entity or insurance investment entity for the fiscal year. Investment entities — amounts reflected in owners’ jurisdiction (12) If subsection (11) does not apply in respect of an investment entity or insurance investment entity that is a constituent entity of an MNE group for a fiscal year, for the purposes of applying subsections (3) to (6), the profit (loss) before income tax and total revenues of the MNE group attributable to, and qualifying income tax expense of, the investment entity or insurance investment entity are to be reflected in the jurisdictions where its direct constituent entity-owners are located, in proportion to their respective ownership interest in the investment entity or insurance investment entity. Location of investment entities (13) For the purposes of this section, an investment entity or insurance investment entity is considered to be located in the jurisdiction where it is resident for the purposes of a qualified country-by-country report. Hybrid arbitrage arrangements (14) For the purposes of applying subsections (3) to (6) in respect of an MNE group for a jurisdiction for a fiscal year, (a) the profit (loss) before income tax of the MNE group for the jurisdiction for the year is to exclude any expense or loss arising as a result of (i) a deduction/non-inclusion arrangement, or (ii) a duplicate loss arrangement; and (b) the qualifying income tax expense of a standard constituent entity of the MNE group that is located in the jurisdiction for the fiscal year is to exclude any income tax expense arising as a result of a duplicate tax recognition arrangement. Division 9 Transition Rules Subdivision A Tax Attributes on Transition Transition — deferred tax assets and liabilities 48 (1) Subject to subsections (2), (3) and (5), in determining the total deferred tax adjustment amount of a constituent entity of an MNE group that is located in a jurisdiction for the GloBE transition year of the MNE group in respect of the jurisdiction and each subsequent fiscal year in which the constituent entity is included in the MNE group, (a) each deferred tax asset and deferred tax liability that is reflected in the constituent entity’s financial accounts at the beginning of the GloBE transition year is to be taken into account to the extent of (i) if the constituent entity can demonstrate that a deferred tax asset is attributable to a loss of the constituent entity that would have been taken into account in determining its GloBE income or loss had the GloBE income or loss been determined for the prior fiscal year in which the loss arose, the amount that the deferred tax asset would be if the rate of tax that applied in determining the deferred tax asset were the minimum rate, (ii) if a deferred tax asset is in respect of a tax credit, the lesser of (A) the amount of the deferred tax asset, and (B) the amount determined by the formula A ÷ B × C where A is the amount of the deferred tax asset, B is the applicable tax rate in the fiscal year immediately preceding the GloBE transition year, and C is the minimum rate, and (iii) in any other case, the lesser of (A) the amount of the deferred tax asset or deferred tax liability, as the case may be, and (B) the amount that the deferred tax asset or deferred tax liability would be if the tax rate applicable in determining the deferred tax asset or deferred tax liability were the minimum rate; (b) if a deferred tax asset referred to in paragraph (a) is in respect of a credit and the tax rate applicable to the constituent entity in a subsequent fiscal year (referred to in this paragraph as the “re-application year”) is different from the applicable tax rate in the fiscal year immediately preceding the GloBE transition year, (i) the formula in clause (a)(ii)(B) must be re-applied to the outstanding balance of the tax credit in the constituent entity’s financial accounts at the beginning of the re-application year to determine the revised deferred tax asset, (ii) the change in the amount of the deferred tax asset resulting from the re-application of the formula must not be treated as deferred tax expense included in the computation of the total deferred tax adjustment amount of the constituent entity in the re-application year or any other fiscal year, and (iii) the deferred tax expense for the re-application year and subsequent fiscal years must be determined based on the amount of the reversal of the revised deferred tax asset; and (c) paragraph 25 (2)(a) and subsection 25 (6) do not apply in respect of the deferred tax assets and deferred tax liabilities referred to in paragraph (a). Excluded deferred tax assets (2) In applying subsection (1), a deferred tax asset that is reflected in a constituent entity’s financial accounts at the beginning of the GloBE transition year of the MNE group in respect of the jurisdiction in which the constituent entity is located is not to be taken into account in determining the constituent entity’s total deferred tax adjustment amount if the deferred tax asset arises (a) as a result of a transaction that occurs on or after December 1, 2021 and before the GloBE transition year; and (b) in respect of (i) an amount that (A) is taken into account in computing the constituent entity’s income or profits in respect of which an entity is subject to an income or profits tax imposed by the government of the jurisdiction in which the constituent entity is located, and (B) would not be taken into account in computing the constituent entity’s GloBE income or loss for the GloBE transition year if the amount arose in the GloBE transition year, or (ii) an amount that (A) is not included in the constituent entity’s income or profits in respect of which an entity is subject to an income or profits tax imposed by the government of the jurisdiction in which the constituent entity is located, and (B) would be included in computing the constituent entity’s GloBE income or loss for the GloBE transition year if the amount arose in the GloBE transition year. Valuation adjustments and accounting recognition adjustments (3) In applying subsection (1), the impact of any valuation adjustment or accounting recognition adjustment with respect to the amount of a deferred tax asset is not to be taken into account. Asset transfers before transferor transition year — conditions (4) Subsection (5) applies in respect of an asset if (a) an entity (referred to in this section as the “transferor”) transfers the asset — on or after December 1, 2021, and before the earlier of the QDMTT transition year and the GloBE transition year (referred to in this section as the “transferor transition year”) of its MNE group in respect of the jurisdiction in which it is located — to another entity (referred to in this section as the “transferee”); (b) the asset is not manufactured, nor of a class or description sold, in the course of carrying on a trade by the transferor or the transferee; and (c) had this Act applied immediately before the transfer, the transferor and transferee would have been constituent entities of the same MNE group. Asset transfers before transferor transition year — consequences (5) Subject to subsection (9), if this subsection applies in respect of an asset (a) the carrying value of the asset at the beginning of the transferor transition year is deemed to be equal to the carrying value of the asset to the transferor immediately before the transfer referred to in paragraph (4)(a), adjusted for (i) any subsequent capitalized expenditure incurred in respect of the asset before the transferor transition year, and (ii) the portion of any amortization and depreciation of the asset that would have been recognized before the transferor transition year if any increase in the carrying value resulting from the transfer had not occurred; and (b) in applying subsection (1), (i) any deferred tax assets and deferred tax liabilities in respect of the asset that are reflected in any entity’s financial accounts and that result from the transfer are not to be taken into account in determining the total deferred tax adjustment amount of any constituent entity, except to the extent provided under subparagraph (ii), and (ii) a deferred tax asset of the transferee that is described in subparagraph (i) may be taken into account but, for this purpose, the amount of that deferred tax asset is deemed to be equal to the lesser of the amount actually recorded in the transferee’s financial accounts as a result of the transfer and the total of the following amounts, adjusted for any capitalized expenditure, amortization and depreciation in respect of the asset that are referred to in subparagraphs (a)(i) and (ii): (A) the portion of the current tax expense for a fiscal year of the transferor in respect of covered taxes that is demonstrated to have resulted from the transfer, and (B) the portion of the current tax expense for a fiscal year of any other entity in respect of covered taxes that is demonstrated to have resulted from the transfer and that would have been allocated to the transferor under section 24 if (I) the transfer had occurred in the transferor transition year, and (II) section 24 were read without reference to paragraph 24 (4)(c). Deemed transfer (6) For the purposes of subsection (4), an asset is deemed to be transferred by a transferor to a transferee on or after December 1, 2021, and before the transferor transition year, if a transaction or arrangement is entered into during that period in respect of the asset that (a) would not, in the absence of this subsection, be regarded as a transfer of the asset by a transferor to a transferee on or after December 1, 2021, and before the transferor transition year; and (b) is accounted for by one or more parties involved in the transaction or arrangement in the same or a similar manner to a change in ownership of the asset, or as giving rise to an asset. Interpretation — single-entity transactions (7) For greater certainty, the transaction or arrangement referred to in subsection (6) may involve only one entity — including where it results in an increase to the carrying value of an asset, or in the creation or increase of a deferred tax asset — in which case the transferor and transferee referred to in subsection (5) are the same entity. Interpretation — pre-existing deferred tax assets and liabilities (8) For greater certainty, for the purposes of subparagraph (5)(b)(i), any deferred tax assets or deferred tax liabilities in respect of an asset reflected in the transferee’s financial accounts immediately after the transfer and that were reflected in the transferor’s financial accounts immediately before the transfer are not deferred tax assets or deferred tax liabilities resulting from the transfer. Election — non-application of paragraph (5)(a) and subparagraph (5)(b)(ii) (9) Paragraph (5)(a) and subparagraph (5)(b)(ii) do not apply in respect of an asset transferred by a transferor to a transferee that is a constituent entity of an MNE group, if (a) the filing constituent entity of the MNE group elects; and (b) the following condition is met: A + B ≥ C × D where A is the sum of the amounts described in clauses (5)(b)(ii)(A) and (B) in respect of the transfer of the asset, B is the amount of any deferred tax asset in respect of a tax loss of the transferor that is demonstrated to have been reversed or to not have been created solely because any gain arising from the transfer of the asset was included in the taxable income of the transferor, C is the minimum rate, and D is the difference between local tax basis in the asset to the transferee immediately after the transfer and the carrying value of the asset at the beginning of the transferor transition year as would be determined under paragraph (5)(a) in the absence of this subsection. Subdivision B Transitional Rates for the Substance-based Income Exclusion Transitional rates for the substance-based income exclusion 49 (1) For the purposes of applying subsection 32 (1) in respect of a fiscal year beginning before 2032, the reference in that provision to “5% of the eligible payroll costs” is to be read as (a) “10% of the eligible payroll costs” if the fiscal year begins in 2023; (b) “9.8% of the eligible payroll costs” if the fiscal year begins in 2024; (c) “9.6% of the eligible payroll costs” if the fiscal year begins in 2025; (d) “9.4% of the eligible payroll costs” if the fiscal year begins in 2026; (e) “9.2% of the eligible payroll costs” if the fiscal year begins in 2027; (f) “9% of the eligible payroll costs” if the fiscal year begins in 2028; (g) “8.2% of the eligible payroll costs” if the fiscal year begins in 2029; (h) “7.4% of the eligible payroll costs” if the fiscal year begins in 2030; (i) “6.6% of the eligible payroll costs” if the fiscal year begins in 2031; and (j) “5.8% of the eligible payroll costs” if the fiscal year begins in 2032. Idem (2) For the purposes of applying subsection 32 (1) in respect of a fiscal year beginning before 2032, the reference in that provision to “5% of the eligible tangible asset amount” is to be read as (a) “8% of the eligible tangible asset amount” if the fiscal year begins in 2023; (b) “7.8% of the eligible tangible asset amount” if the fiscal year begins in 2024; (c) “7.6% of the eligible tangible asset amount” if the fiscal year begins in 2025; (d) “7.4% of the eligible tangible asset amount” if the fiscal year begins in 2026; (e) “7.2% of the eligible tangible asset amount” if the fiscal year begins in 2027; (f) “7% of the eligible tangible asset amount” if the fiscal year begins in 2028; (g) “6.6% of the eligible tangible asset amount” if the fiscal year begins in 2029; (h) “6.2% of the eligible tangible asset amount” if the fiscal year begins in 2030; (i) “5.8% of the eligible tangible asset amount” if the fiscal year begins in 2031; and (j) “5.4% of the eligible tangible asset amount” if the fiscal year begins in 2032. PART 3 Domestic Minimum Top-up Tax Interpretation 50 This Part comprises provisions that (a) are intended to implement a qualified domestic minimum top-up tax that has qualified domestic minimum top-up tax safe harbour status (including transitional qualified status); and (b) are to be interpreted consistently with the requirements outlined in the GloBE Commentary. Domestic minimum top-up tax 51 (1) A particular person must pay a tax in respect of a constituent entity of an MNE group for a fiscal year in an amount equal to the domestic top-up amount of the constituent entity for the fiscal year, if (a) the constituent entity is located in Canada for the fiscal year; (b) the MNE group is a qualifying MNE group for the fiscal year; and (c) the particular person (i) is the constituent entity, or (ii) if the constituent entity is not a person, would, under the relevant assumptions, include in its income for the purposes of Part I of the Income Tax Act income of the constituent entity for the fiscal year. Relevant assumptions (2) For the purposes of subparagraph (1)(c)(ii), the relevant assumptions are that (a) the constituent entity referred to in that subparagraph has income for the fiscal year that would be included in computing its income for the purposes of Part I of the Income Tax Act if it were a person resident in Canada; and (b) the person referred to in paragraph (1)(c) is resident in Canada for the purposes of the Income Tax Act . Definition of domestic top-up amount 52 (1) Subject to subsection 53 (3), the domestic top-up amount , of a constituent entity of an MNE group that is located in Canada for a fiscal year, means the amount that would be the top-up amount of the constituent entity for the fiscal year determined under subsection 30 (1), 34 (2), 35 (1) or 36 (2) (as adjusted under any other applicable provision of Part 2), as the case may be, if that amount (and any amounts or results relevant to the determination of that amount) were required to be determined and (a) the adjusted covered taxes of the constituent entities of the MNE group that are located in Canada were determined without reference to any covered taxes that would otherwise be allocable to those constituent entities under any of subsections 24 (1) and (4) to (6) (except, in the case of subsection 24 (6), any amount of those covered taxes imposed under the Income Tax Act ); (b) the total amount of tax payable for any fiscal year in respect of the constituent entities of the MNE group that are located in Canada, under a qualified domestic minimum top-up tax, were deemed to be nil; (c) if the fiscal year is, or is subsequent to, the QDMTT transition year of the MNE group in respect of Canada but precedes the GloBE transition year of the MNE group in respect of Canada, all references in section 26 and subsections 48 (1) and (2) to “GloBE transition year” were read as references to “QDMTT transition year”; (d) if the fiscal year is, or is subsequent to, the GloBE transition year of the MNE group in respect of Canada and the QDMTT transition year of the MNE group in respect of Canada preceded the GloBE transition year, (i) the following amounts in respect of the period before the start of the GloBE transition year (such period referred to in this paragraph as the “refresh period”) were deemed to be nil: (A) for the purposes of subsection 25 (6), all or any portion of a deferred tax liability (other than a recapture exception accrual) in respect of which (I) a positive amount was included in determining the total deferred tax adjustment amount of the constituent entity for a fiscal year that is included in the refresh period, and (II) subsection 25 (6) did not apply in a fiscal year that is included in the refresh period, and (B) any portion, of a GloBE loss deferred tax asset that arises under paragraph 26 (b) in a fiscal year that is included in the refresh period, that does not reverse during the refresh period, and (ii) all references in subsection 29 (4) to “a fiscal year that precedes the particular fiscal year” were read as references to “a fiscal year that is, or is subsequent to, the GloBE transition year and precedes the particular fiscal year”; and (e) any election made or revoked under section 44 or an equivalent provision of the laws of another jurisdiction were not taken into account. Application — joint ventures (2) For the purposes of this section and section 51 , any reference to a constituent entity of an MNE group includes an entity that is a joint venture entity in respect of the MNE group. Definitions — initial phase of international activity 53 (1) The following definitions apply in this section. initial phase of international activity year , of an MNE group, means a fiscal year (a) throughout which there are constituent entities of the MNE group that are located in no more than six different jurisdictions; and (b) for which the total of all amounts, each of which is the net book value, for the fiscal year, of a tangible asset held by a constituent entity of the MNE group that is located in a jurisdiction other than the reference jurisdiction, does not exceed €50 million. ( année de la phase de démarrage des activités internationales ) net book value , for a fiscal year, of a tangible asset, means the average of the beginning and end values of the tangible asset for the fiscal year after taking into account accumulated depreciation, depletion and impairment, as recorded in the financial statements. ( valeur nette comptable ) reference jurisdiction , of an MNE Group, means the jurisdiction (a) in which a constituent entity of the MNE group is located in the first fiscal year that any constituent entity of, or joint venture entity in respect of, the MNE group is subject to a qualified UTPR or this Part; and (b) for which the sum of the net book values, for that fiscal year, of tangible assets held by the one or more constituent entities that are located in the jurisdiction is greater than the sum of the net book values, for that fiscal year, of tangible assets held by constituent entities of the MNE group that are located in any other single jurisdiction. ( juridiction de référence ) Tangible assets — permanent establishments (2) For the purposes of the definitions initial phase of international activity year and reference jurisdiction in subsection (1), (a) the tangible assets held by a constituent entity that is a permanent establishment are only those that are reflected in the separate financial accounts of the permanent establishment as adjusted in accordance with clause 17 (1)(b)(ii)(B) or subsection 17 (2) (referred to in this subsection as “permanent establishment assets”); and (b) the tangible assets held by a constituent entity that is a main entity in respect of one or more permanent establishments are not to include any permanent establishment assets of those permanent establishments. Initial phase of international activity — exclusion (3) The domestic top-up amount of a constituent entity of an MNE group that is located in Canada for a fiscal year is deemed to be nil if (a) there is no relevant parent entity that is located in a jurisdiction (other than Canada) where it is subject to tax under a qualified IIR and that holds an ownership interest in any constituent entity of the MNE group that is located in Canada; (b) the fiscal year (i) begins on or before the day that is five years after the first day of the first fiscal year that a constituent entity of, or joint venture entity in respect of, the MNE group is subject to a qualified UTPR, and (ii) is an initial phase of international activity year; and (c) all fiscal years preceding the fiscal year are initial phase of international activity years. PART 4 Anti-Avoidance General anti-avoidance rule 54 Section 245 of the Income Tax Act applies for the purposes of this Act, with any modifications that the circumstances require. PART 5 General Provisions, Administration and Enforcement Definitions Definitions 55 (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 ) assessment  means an assessment or a reassessment under this Act. ( cotisation ) 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 ) bankrupt  has the same meaning as in section 2 of the Bankruptcy and Insolvency Act . ( failli ) 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 ) Canadian filing entity  means an entity appointed under subsection 61 (3). ( entité déclarante Canadienne ) Commissioner  means, except in sections 58 , 120 and 137 , the Commissioner of Revenue appointed under section 25 of the Canada Revenue Agency Act . ( commissaire ) designated filing entity , in respect of an MNE group for a fiscal year, means a constituent entity of the MNE group that has been appointed by the MNE group in substitution for the ultimate parent entity to file a GIR on behalf of the MNE group for the fiscal year, if the entity (a) has been given everything it may reasonably require to comply with the filing obligations under this Part; and (b) is located in a jurisdiction in the fiscal year that has a qualified IIR or a qualified UTPR in effect for the fiscal year. ( entité déclarante désignée ) designated local entity  means an entity appointed under paragraph 60 (3)(a). ( entité locale désignée ) designated notification entity  means an entity appointed under paragraph 60 (5)(a). ( entité de notification déterminée ) GIR due date , in respect of a qualifying MNE group for a fiscal year, means the later of (a) June 30, 2026; and (b) the day that is (i) 18 months after the last day of the fiscal year, if the fiscal year is the earlier of (A) the first fiscal year for which a constituent entity of, or joint venture entity in respect of, the MNE group that is located in Canada is subject to Part 3, and (B) the first fiscal year that a constituent entity of, or joint venture entity in respect of, the MNE group is subject to a qualified IIR or qualified UTPR; and (ii) 15 months after the last day of the fiscal year, in any other case. ( date d’échéance DRG ) GIR exchange date , in respect of a qualifying MNE group for a fiscal year, means the date that exchanges of GIR information are due to occur under the applicable (or relevant) qualifying competent authority agreement. ( date d’échange DRG ) 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 ) person  includes an entity. ( personne ) qualifying competent authority agreement  means an agreement that (a) is between authorized representatives of the jurisdictions that are parties to a listed international agreement (as defined in subsection 248(1) of the Income Tax Act ); and (b) requires the automatic exchange of GIR information between the jurisdictions of the parties. ( accord admissible entre autorités compétentes ) qualifying foreign filing entity , in respect of a qualifying MNE group for a fiscal year, means a constituent entity of the MNE group, if (a) the constituent entity is the ultimate parent entity or designated filing entity of the MNE group for the fiscal year; (b) the constituent entity is located in a jurisdiction (referred to in this definition as the “filing jurisdiction”) other than Canada in the fiscal year; (c) the constituent entity is obligated to file a GIR, in respect of the MNE group for the fiscal year, with the tax authority of the filing jurisdiction; and (d) the filing jurisdiction has a qualifying competent authority agreement that is in effect, and to which Canada is a party, on or before the GIR exchange date for the fiscal year. ( entité déclarante étrangère admissible ) 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 ) 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, unincorporated society, club, association or organization, or a branch thereof, if the member or participant, or a majority of the members or participants, having management and control of the person 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; or (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. Arm’s length (3) For the purposes of this Part, (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 (4) For the purposes of this Part, persons are related to each other if they are related persons within the meaning of subsection 6(2) of the Excise Act, 2001 . Administration or enforcement (5) 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. Partnerships (6) For the purposes of this Part, 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. Division 1 Duties of Minister Minister’s duty 56 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 57 (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 58 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 filing of documents 59 If any provision of this Act or a regulation requires a person to file a form or other document (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 file the document or provide the information by the date set out in the request. Division 2 Returns GIR filing obligation 60 (1) A GIR, in respect of a qualifying MNE group for a fiscal year, must be filed in the prescribed form and manner with the Minister on or before the GIR due date for the fiscal year by (a) the ultimate parent entity of the MNE group, if (i) the ultimate parent entity is located in Canada in the fiscal year, and (ii) the MNE group does not have a designated filing entity for the fiscal year that is located in Canada; (b) the designated filing entity in respect of the MNE group for the fiscal year, if it is located in Canada in the fiscal year; or (c) subject to subparagraph (3)(b)(ii), each constituent entity of the MNE group that is located in Canada in the fiscal year, if (i) neither paragraph (a) nor (b) applies, (ii) the MNE group does not have a qualifying foreign filing entity for the fiscal year, and (iii) neither the ultimate parent entity nor the designated filing entity in respect of the MNE group for the fiscal year that is located in a jurisdiction other than Canada files a complete or substantially complete GIR for the fiscal year, in the prescribed form and manner with the Minister, on or before the GIR due date. GIR filing obligation — failure to exchange (2) A GIR, in respect of a qualifying MNE group for a fiscal year, must be filed in prescribed manner with the Minister by each constituent entity of the MNE group that is located in Canada in the fiscal year, or the designated notification entity, within 30 days of the notification described in paragraph (b), if (a) the competent authority of the jurisdiction where the qualifying foreign filing entity is located has not provided a complete or substantially complete GIR for the fiscal year to the Minister by the GIR exchange date for the fiscal year; and (b) the Minister notifies the constituent entities of the MNE group that are located in Canada, or the designated notification entity, that the Minister has not received the GIR and requires it to be filed by one or more of those entities. GIR — appointment of designated local entity (3) If more than one constituent entity of a qualifying MNE group is required to file a GIR in respect of the MNE group with the Minister for a fiscal year under paragraph (1)(c), (a) one of those constituent entities that are located in Canada may be appointed as a designated local entity, in the GIR filed with the Minister on or before the GIR due date for the fiscal year, to file the GIR, in respect of the MNE group for the year, with the Minister on behalf of all of those constituent entities; and (b) where a designated local entity is appointed to file the GIR for the fiscal year (i) the designated local entity must file the GIR, in respect of the MNE group for the year, with the Minister on or before the GIR due date for the fiscal year, and (ii) if the designated local entity does so, the GIR is deemed to have been filed at that time by each of the other constituent entities of the MNE group that are located in Canada. GIR notification requirement (4) If there is a qualifying foreign filing entity in respect of a qualifying MNE group for a fiscal year that is filing the GIR in respect of the MNE group for the fiscal year with the tax authority of the jurisdiction where it is located, subject to subparagraph (5)(b)(ii), each constituent entity of the MNE group that is located in Canada must notify the Minister of the following in the prescribed form and manner on or before the GIR due date for the fiscal year: (a) the identity of the qualifying foreign filing entity; and (b) the jurisdiction in which the qualifying foreign filing entity is located. GIR — appointment of designated notification entity (5) If more than one constituent entity of a qualifying MNE group is required to notify the Minister for a fiscal year under subsection (4), (a) one of those constituent entities that are located in Canada may be appointed as a designated notification entity, in the notification provided to the Minister on or before the GIR due date for the fiscal year, to notify the Minister, in respect of the MNE group for the year, on behalf of all of those constituent entities; and (b) where a designated notification entity is appointed to provide the notification to the Minister for the fiscal year (i) the designated notification entity must provide the notification to the Minister, in respect of the MNE group for the year, on or before the GIR due date for the fiscal year, and (ii) if the designated notification entity provides the notification to the Minister at a time that is on or before the GIR due date for the fiscal year, the notification is deemed to have been provided at that time by each of the other constituent entities of the MNE group that are located in Canada. Part 2 return 61 (1) A person that is liable to pay tax under Part 2 for a fiscal year must file in the prescribed form and manner with the Minister, on or before the GIR due date, a return for the fiscal year containing an estimate of the tax payable. Part 3 return (2) A person that is liable to pay tax under Part 3 for a fiscal year must file in the prescribed form and manner with the Minister, on or before the GIR due date, a return for the fiscal year containing an estimate of the tax payable. Canadian filing entity (3) If more than one person, in respect of an MNE group, is required to file a return under subsection (1) or (2) for a fiscal year, one of those persons that is resident in Canada may be appointed as the Canadian filing entity in the return, with the consent of the person, to file the return on behalf of all the persons that would, in the absence of subsection (4), be required to file the return for the fiscal year. Consequences — Canadian filing entity (4) If a Canadian filing entity is appointed, in respect of an MNE group, under subsection (3) to file a return with the Minister for a fiscal year, (a) the Canadian filing entity must file the return — on behalf of all persons that are required to file returns under subsection (1) or (2), as the case may be, in respect of the MNE group for the fiscal year — on or before the GIR due date for the fiscal year; and (b) if the Canadian filing entity does so, the return is deemed to have been filed at that time by each of those persons. Consequences — appointment (5) If a designated filing entity that is located in Canada, a designated local entity or a Canadian filing entity (each referred to in this subsection as an “appointed entity”) is appointed to act on behalf of one or more persons in respect of an MNE group for a fiscal year, (a) the appointed entity must act on behalf of those persons for the purposes of this Part in respect of the fiscal year; (b) any action taken by the appointed entity on behalf of those persons for the purposes of this Part in respect of the fiscal year is deemed to have been performed by those persons; and (c) the Minister must direct to the appointed entity and those persons any communication for the purposes of this Part as it applies to those persons in respect of the fiscal year. Demand for return 62 A person 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 fiscal year that is designated in the demand. Trustees, etc. 63 Every trustee in bankruptcy, assignee, liquidator, curator, receiver, trustee or committee and every agent or other person administering, managing, winding up, controlling or otherwise dealing with the property, business, estate or income of a person that has not filed a return for a fiscal year as required by this Division must file the return. Division 3 Payments Payments 64 The tax payable under this Act by a person in respect of a fiscal year must be paid on or before the GIR due date for the fiscal year. Manner and form of payments 65 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. Part 2 — assessment of another constituent entity 66 (1) The Minister may assess a particular constituent entity of an MNE group that is located in Canada in respect of tax and other amounts payable under this Part or Part 2 by another constituent entity of the MNE group that is located in Canada. 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. Part 3 — joint and several, or solidary, liability (3) A particular constituent entity that is located in Canada is, in respect of tax and other amounts payable under this Part or Part 3 by another constituent entity of the same MNE group or a joint venture entity in respect of the same MNE group, jointly and severally, or solidarily, liable with the other constituent entity or joint venture entity to pay those amounts and this Part applies to the particular constituent entity in respect of those amounts, with any modifications that the circumstances require. Part 3 — joint and several, or solidary, liability of joint venture entities (4) A particular joint venture entity that is located in Canada is, in respect of tax and other amounts payable under this Part or Part 3 by another joint venture entity of the same joint venture group, jointly and severally, or solidarily, liable with the other joint venture entity to pay those amounts and this Part applies to the particular joint venture entity in respect of those amounts, with any modifications that the circumstances require. Partnerships — joint and several, or solidary, liability (5) A partnership and each member or former 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 and, if the member is a member of the partnership when the partnership is 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 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. Partnerships — tiers (6) For the purposes of this section, a partnership or other person 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. Trusts — joint and several, or solidary, liability (7) A trust and all persons that are trustees of that trust at any time during a fiscal year are jointly and severally, or solidarily, liable for the payment of all amounts that are required to be paid by the trust under this Act for the fiscal year. Persons liable in respect of other entities (8) All persons that are, in respect of a constituent entity, liable to pay an amount under this Act for a fiscal year are jointly and severally, or solidarily, liable with the constituent entity to pay all amounts that are required to be paid by any of those persons or the constituent entity under this Act for the fiscal year. Discharge of liability (9) If a particular person and another person are jointly and severally, or solidarily, liable in respect of part or all of the liability of the other person under this Act, the following rules apply: (a) a payment by the particular person on account of the particular person’s liability discharges, to the extent of the payment, the joint liability; and (b) a payment by the other person on account of the other person’s liability discharges the particular person’s liability only to the extent that the payment operates to reduce the particular person’s liability to an amount less than the amount in respect of which the particular person is jointly and severally, or solidarily, liable. Definition of transaction 67 (1) In this section and section 102 , 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, that the transferee was assessed under paragraph 97.44(1)(b) of the Customs Act , subsection 325(2) of the Excise Tax 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 fiscal year that includes that time, or (B) any preceding fiscal year, or (ii) interest or penalties (other than amounts referred to 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 85 (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”) transfers 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 fiscal year in which the property is 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 68 (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. Exchange rate (2) If an amount payable by a person for a fiscal year under this Act would, in the absence of this subsection, be denominated in a currency other than the Canadian dollar, that amount is to be converted to Canadian dollars using the average for the fiscal year of the daily rates of exchange quoted by the Bank of Canada, or if there is no daily rate quoted by the Bank of Canada for a particular day, a daily rate of exchange that is acceptable to the Minister, in respect of the two currencies. Exception (3) 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 69 (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 that is 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 70 (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 4 Interest Compound interest 71 (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 under section 4301 of the Income Tax Regulations , with any modifications that the circumstances require, 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 fiscal year and the total amount of interest and penalties payable by the person under this Act in respect of the fiscal year is not more than $25, the Minister may cancel the interest and penalties. Waiving or cancelling interest 72 (1) The Minister may, on or before the day that is 10 calendar years after the end of a particular fiscal 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 fiscal year, and may despite subsection 85 (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 under section 4301 of the Income Tax Regulations , with any modifications that the circumstances require, 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 5 Administrative Charge Under the Financial Administration Act Dishonoured instruments 73 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 6 Refunds Statutory recovery rights 74 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 75 (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 9 and 10 and subsections 82 (6) and 137 (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 under section 4301 of the Income Tax Regulations , with any modifications that the circumstances require, 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 82 (5)) 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 76 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 a 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 77 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 78 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 79 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 85 (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 7 Records and Information Keeping records 80 (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 an MNE group, all of that person’s records that are necessary to determine whether other constituent 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 fiscal 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 fiscal year, a person has not filed a return as and when required by Division 2 and subsequently files a return for the fiscal 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 81 (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 (referred to in this section 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 more than one unnamed person (referred to in this subsection as the “group”), 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 85 (1). Division 8 Assessments Assessment 82 (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. GAAR — notice of determination (2) If, because of section 54 , the Minister determines any amount under this Act (other than an amount payable under this Act) in respect of a person or entity, (a) subsections 152(1.11) to (1.12) of the Income Tax Act apply with any modifications that the circumstances require; (b) the Minister must send to the person or entity, with all due dispatch, a notice of determination stating the amount so determined; and (c) in applying the provisions of this Act, any such notice of determination is to be treated as a notice of assessment. Liability not affected (3) 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 (4) 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 (5) In assessing a person under subsection (1), the Minister may determine whether a refund under section 75 is payable to the person. If the Minister makes such a determination, the person is deemed to have made an application under section 75 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 (6) An assessment must not 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 83 (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 84 Subject to subsections 87 (11), 97 (2) and 105 (2), if an assessment of a person in respect of a particular fiscal 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 fiscal 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 under section 4301 of the Income Tax Regulations , with any modifications that the circumstances require, on the amount of the excess for the period beginning on the day that is the later of 30 days following the GIR due date for the fiscal 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 85 (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 later of (a) the day on which the return to which the tax or other amount payable relates was filed under Division 2, and (b) the day on which the Minister receives the GIR. 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 fiscal year that was in fact payable in respect of another fiscal year, the Minister may at any time make an assessment for that other fiscal 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 86 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 9 Objections to Assessment Objections to assessment 87 (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 (referred to in this section 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 fiscal 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 under section 4301 of the Income Tax Regulations , with any modifications that the circumstances require, on the amount of the excess for the period beginning on the day that is the later of 30 days following the GIR due date for the fiscal 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 88 (1) If no objection to an assessment is filed under section 87 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 made 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 made under subsection (1) even though it was not made in accordance with subsection (3). Duties of Minister (5) On receipt of an application made 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 made 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 10 Appeal Extension of time by Tax Court of Canada 89 (1) A person that has made an application under section 88 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) later than 30 days after the day on which notification of the decision referred to in subsection 88 (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 88 (3) and the notification, if any, referred to in subsection 88 (5). Copy to 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 88 (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 88 (1) was made as soon as circumstances permitted. Appeal to Tax Court of Canada 90 (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) later than 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 87 (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 91 (1) If no appeal to the Tax Court of Canada under section 90 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 made under subsection (1) must set out the reasons why the appeal was not instituted within the time limited by section 90 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 made 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 90 for appealing; and (b) the person demonstrates that (i) within the time limited by section 90 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 92 (1) Despite section 90 , 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 87 (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 87 (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 90 , 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 93 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 94 (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 95 (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 85 (1); (b) the period within which a notice of objection to an assessment may be filed under section 87 ; and (c) the period within which an appeal may be instituted under section 90 . Reference of common questions to Tax Court 96 (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 made 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 made under subsection (1) must be served by the Minister on each of 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 made 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 made 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 made 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 85 (1); (b) the period within which a notice of objection to an assessment may be filed under section 87 ; and (c) the period within which an appeal may be instituted under section 90 . 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 Minister on appeal 97 (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) if 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 fiscal year, interest at the rate prescribed under section 4301 of the Income Tax Regulations , with any modifications that the circumstances require, must be paid for the period beginning on the day that is the later of 30 days following the GIR due date for the fiscal 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 11 Penalties Failure to file GIR 98 (1) If one or more constituent entities of a qualifying MNE group that are located in Canada are required, under subsection 60 (1) or subparagraph 60 (3)(b)(i), to file with the Minister a GIR, in respect of the MNE group for a fiscal year and any of them fails to file a complete or substantially complete GIR — or, if the GIR is intended to be filed by a qualifying foreign filing entity instead of the one or more of the constituent entities, and no constituent entity that is located in Canada notifies the Minister under subsection 60 (4) or subparagraph 60 (5)(b)(i) — on or before the GIR due date for the fiscal year, each constituent entity that is located in Canada is jointly and severally, or solidarily, liable to a penalty equal to the amount determined by the formula A × B where A is $25,000; and B is the number of complete months, not exceeding 40, within the period beginning on the GIR due date and ending on the day on which the GIR is filed or notification is made. Failure to file GIR after notification (2) If one or more constituent entities of a qualifying MNE group that are located in Canada are required, under subsection 60 (2), to file with the Minister a GIR in respect of the MNE group for a fiscal year and any of them fails to file a complete or substantially complete GIR, within 30 days of the notification described in paragraph 60 (2)(b), each constituent entity that is located in Canada is jointly and severally, or solidarily, liable to a penalty equal to the amount determined by the formula A × B where A is $25,000; and B is the number of complete months, not exceeding 40, within the period beginning on the day that is 30 days after the Minister notifies the constituent entities of the MNE group that are located in Canada, or the designated notification entity, of the requirement to file a GIR, and ending on the day on which the GIR is filed. GIR transitional penalty relief (3) Subsections (1) and (2) do not apply to a constituent entity of a qualifying MNE group that is required to file a GIR, in respect of the MNE group for a fiscal year, with the Minister under subsection 60 (1) or (2) or subparagraph 60 (3)(b)(i), or notify the Minister under subsection 60 (4) or subparagraph 60 (5)(b)(i), if (a) the fiscal year begins before January 1, 2027 and ends before July 1, 2028; and (b) in the opinion of the Minister, the entity used reasonable measures to ensure the correct application of the provisions of this Act. Failure to file return under section 61 99 (1) A person that fails to file a return for a fiscal year as and when required under section 61 is liable to a penalty equal to the total of (a) an amount equal to 5% of the tax payable by the person under this Act in respect of the fiscal 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 person in respect of a fiscal year if the person (a) fails to file a return for the year as and when required by section 61 ; (b) fails to comply with a demand sent under section 62 for a return for 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) in respect of a return for any of the three preceding fiscal years. Repeated failure to file — penalty (3) If this subsection applies to a person in respect of a fiscal year because of subsection (2), the person is liable to a penalty equal to the total of (a) an amount equal to 10% of the tax payable by the person under this Act, in respect of the fiscal 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 that 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 referred to in this subsection 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 100 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 imposed 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 81 (1) or section 119 if a reasonable effort was made by the person to obtain the information or record. Unreasonable appeal 101 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 102 (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, entity, plan or scheme; and (b) participating, directly or indirectly, in the selling of an interest in, or the promotion of, an arrangement, entity, plan, property or scheme. ( activité de planification ) section 67 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 67 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 67 ) section 67 avoidance transaction  means a transaction or series of transactions in respect of which (a) the conditions set out in paragraph 67 (7)(a) or (b) are met; or (b) if subsection 67 (7) applies to the transaction or series of transactions, the amount determined under subparagraph 67 (7)(c)(ii) would exceed the amount determined under subparagraph 67 (7)(c)(i). ( opération d’évitement en vertu de l’article 67 ) transferee  has the meaning assigned by subsections 67 (2) and (7). ( bénéficiaire du transfert ) transferor  has the meaning assigned by subsections 67 (2) and (7). ( auteur du transfert ) Section 67 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 67 avoidance planning, or would reasonably be expected to know is section 67 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 section 67 avoidance planning, and (b) $100,000. General penalty 103 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 104 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 98 or 99 , on the day on which they are required to file the return or notify the Minister; and (b) in any other case, on the day on which the original notice of assessment of the penalty is sent. Waiving or cancelling penalties 105 (1) The Minister may, on or before the day that is 10 calendar years after the end of a fiscal 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 85 (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 a penalty and the Minister waives or cancels any portion of that penalty under subsection (1), the Minister must refund the portion of the penalty and pay interest on it at the rate prescribed under section 4301 of the Income Tax Regulations , with any modifications that the circumstances require, 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 subsection (1) (or, if there is no such application, on the day on which the Minister waives or cancels the portion of the penalty) and ending on the day on which the portion of the penalty is paid as a refund or applied against another amount owed by the person to His Majesty in right of Canada. Division 12 Offences and Punishment Failure to file or comply 106 (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 80 (6) or (8) or section 81 , or an order made under section 112 , is guilty of an offence and, in addition to any penalty otherwise provided for under this Act, is liable on summary conviction to a fine of not less than $2,000 and not more than $40,000 or to imprisonment for a term not exceeding 12 months, or to both. 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 107 (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 for under this Act, is liable to (a) 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; (b) imprisonment for a term not exceeding two years; or (c) both a fine referred to in paragraph (a) and imprisonment for a term not exceeding two years. Prosecution on indictment (3) A person that is charged with an offence described in subsection (1) may, at the election of the 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) 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; (b) imprisonment for a term not exceeding five years; or (c) both a fine referred to in paragraph (a) and imprisonment for a term not exceeding five years. 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 108 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) a fine not exceeding 20% of the amount of the tax that should have been paid; (b) imprisonment for a term not exceeding 12 months; or (c) both a fine referred to in paragraph (a) and imprisonment for a term not exceeding 12 months. Offence — confidential information 109 (1) A person is guilty of an offence and liable on summary conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 12 months, or to both, if the person (a) contravenes subsection 123 (2); or (b) knowingly contravenes an order made under subsection 123 (7). Offence (2) A person to whom confidential information has been provided for a particular purpose under subsection 123 (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 or to imprisonment for a term not exceeding 12 months, or to both. Definition of confidential information (3) In subsection (2), confidential information has the same meaning as in subsection 123 (1). General offence 110 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 not exceeding $100,000 or to imprisonment for a term not exceeding 12 months, or to both. Defence of due diligence 111 No person is to be convicted of an offence under section 106 or 110 of this Act if the person establishes that they exercised all due diligence to prevent the commission of the offence. Compliance orders 112 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. 113 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 114 Despite the Criminal Code or any other law, a 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 115 (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 into 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 13 Inspections Authorized person 116 (1) A person authorized by the Minister (referred to in this section 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 117 (1) On application by the Minister, a judge may, despite section 112 , order a person to provide any access, assistance, information or record sought by the Minister under section 81 or 116 if the judge is satisfied that the person was required under section 81 or 116 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 85 (1), an assessment may be made. Search warrants 118 (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 119 (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 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 85 . Consequence of failure (8) If a person fails to comply substantially with a notice of a requirement 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 any other person that is a constituent entity of an MNE group of which the first 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 120 (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 121 If any record is seized, inspected, audited, examined or provided under any of sections 81 , 116 to 118 and 120 , 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 printout of the electronic record, and any copy or printout of the record purporting to be certified by the Minister or an authorized person to be a copy or printout 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 122 A person must, unless the person is unable to do so, do everything the person is required to do under any of sections 81 and 116 to 121 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 14 Confidentiality of Information Definitions 123 (1) The following definitions apply in this section. authorized person  means a person that 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 purposes of (i) the administration or enforcement of this Act, solely for those purposes, 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 purposes of the formulation, evaluation or implementation of a fiscal or trade policy or solely 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 official’s department or agency to obtain statistical data for research and analysis, (v) to an official solely for the purpose 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 and solely for the purposes set out in 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; (e) provide confidential information, or allow the inspection of or access to confidential information, solely for the purposes of a provision contained in a tax treaty or in a listed international agreemen t (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 purposes 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 15 Collection Definitions 124 (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 127 to 132 . ( 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 that is 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 must 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 133 (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 is 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 76 ; (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 is not permitted, because of any of subsections 125 (2) to (5), to take any of the actions referred to in subsection 125 (1) in respect of the tax debt; (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 , the Companies’ Creditors Arrangement Act or the Farm Debt Mediation Act . Assessment before collection (10) The Minister must not take any collection action under sections 127 to 132 in respect of any amount payable by a person that may be assessed under this Act, other than interest under section 71 , 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 127 , 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 127 to 133 apply to the amount as if it were payable under this Act. Collection restrictions 125 (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 127 ; (c) require a person to make a payment under subsection 128 (1); (d) require an institution (within the meaning of subsection 128 (2)) or a person to make a payment under subsection 128 (2); (e) require a person to turn over moneys under subsection 131 (1); and (f) give a notice, issue a certificate or make a direction under subsection 132 (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 95 (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 96 (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 million, the Minister may collect up to 50% of the total. Security 126 (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 127 (1) Any amount payable by a person (referred to in this section 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 referred to in this section 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 that 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 under section 4301 of the Income Tax Regulations , with any modifications that the circumstances require, 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 128 (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 (referred to in this section 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 (referred to in this section 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 that 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 the 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 70 and 82 to 97 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 made 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 129 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 130 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 131 (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 (referred to in this section 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 132 (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 133 (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 132 (2) to (4) apply, with any modifications that the circumstances require. Authorization to proceed without delay 134 (1) Despite section 125 , if, on an 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 127 to 132 in respect of that amount. Notice of assessment not sent (2) An authorization made 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 day on which 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 124 , 127 to 129 , 131 and 132 , the amount in respect of which an 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 made 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 made by a person 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 16 Evidence and Procedure Service 135 (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 136 (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 137 (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 specified 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 specified 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, statement, answer or 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, statement, answer or 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) 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) 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) 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 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, application, certificate, statement or answer that is 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, application, certificate, statement or 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 6 Regulations Regulations 138 (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) prescribing the evidence required to establish facts relevant to assessments under this Act; (c) 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; and (d) 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 Global Minimum 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 139 For greater certainty, (a) in prescribing an amount under subsection 138 (1), the Governor in Council may prescribe a positive or negative amount; and (b) in prescribing a manner of determining an amount under subsection 138 (1), the Governor in Council may prescribe a manner that could result in a positive or negative amount. Incorporation by reference — limitation removed 140 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 not statutory instruments 141 For greater certainty, any certificate or similar document issued under this Act is not a statutory instrument for the purposes of the Statutory Instruments Act . (2) Subject to subsection (3), the Global Minimum Tax Act , as enacted by subsection (1), applies to fiscal years of a qualifying MNE group that begin on or after December 31, 2023. (3) Section 54 of the Global Minimum Tax Act , as enacted by subsection (1), applies to fiscal years of a qualifying MNE group beginning on or after December 31, 2023, except that any penalty imposed by the application of that section applies in respect of transactions that occur on or after the first day on which both this Act and the Fall Economic Statement Implementation Act, 2023 have received royal assent. Consequential Amendments R.S., c. A- 1 Access to Information Act 82 (1) Schedule II to the Access to Information Act is amended by adding, in alphabetical order, a reference to Global Minimum Tax Act Loi sur l’impôt minimum mondial and a corresponding reference to “section 121”. (2) Subsection (1) is deemed to have come into force on December 31, 2023. R.S., c. B-3; 1992, c. 27, s. 2 Bankruptcy and Insolvency Act 83 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 Global Minimum Tax Act . R.S., c. C- 46 Criminal Code 84 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 Global Minimum Tax Act to which access is sought or that is proposed to be examined or communicated; and R.S., c. E- 15 Excise Tax Act 85 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 Global Minimum Tax Act . 86 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 Global Minimum Tax Act have been filed with the Minister. 87 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 Global Minimum Tax Act have been filed with the Minister. 88 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 Global Minimum Tax Act to be remitted or paid before that time by the registrant have been remitted or paid, and 89 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 Global Minimum Tax Act have been filed with the Minister. 90 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 Global Minimum Tax Act have been filed with the Minister. R.S., c. E-20; 2001, c. 33, s. 2(F) Export Development Act 91 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 Global Minimum Tax Act ; or R.S., c. F- 11 Financial Administration Act 92 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 Global Minimum Tax Act . R.S., c. T- 2 Tax Court of Canada Act 93 (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 Global Minimum 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 94 or 95 of the Global Minimum 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 88 or 90 of the Global Minimum Tax Act . 94 Paragraph 18.29(3)(a) of the Act is amended by adding the following after subparagraph (vi): (vi.01) section 88 or 90 of the Global Minimum Tax Act , 95 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 94 of the Global Minimum 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. 96 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 95 of the Global Minimum 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. R.S., c. 1 (2nd Supp.) Customs Act 97 Paragraph 107(5)(g.1) of the Customs Act is replaced by the following: (g.1) an official of the Canada Revenue Agency solely for a purpose relating to the administration or enforcement of the Canada Pension Plan , the Excise Act , the Excise Tax Act , the Income Tax Act , the Employment Insurance Act , the Excise Act, 2001 , the Underused Housing Tax Act , the Select Luxury Items Tax Act or the Global Minimum Tax Act ; R.S., c. 1 (5th Supp.) Income Tax Act 98 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 Global Minimum Tax Act ; 99 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 Global Minimum Tax Act have been filed with the Minister. 100 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 Global Minimum 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, 1999, c. 17; 2005, c. 38, s. 35 Canada Revenue Agency Act 101 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 Global Minimum Tax Act ; or 2002, c. 9, s. 5 Air Travellers Security Charge Act 102 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 Global Minimum Tax Act . 2002, c. 22 Excise Act, 2001 103 (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 Global Minimum 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 Global Minimum Tax Act , or 104 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 Global Minimum Tax Act . 2022, c. 5, s. 10 Underused Housing Tax Act 105 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 and the Global Minimum Tax Act have been filed with the Minister. 2022, c. 10, s. 135 Select Luxury Items Tax Act 106 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 and the Global Minimum Tax Act have been filed with the Minister. 107 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 and the Global Minimum Tax Act in respect of periods ending before the appointment have been filed and all amounts required to be paid under that Part and those Acts by the bankrupt in respect of those periods have been paid. 108 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 or the Global Minimum Tax Act , an amount not exceeding the amount determined by the formula 109 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 and the Global Minimum Tax Act have been filed with the Minister. 110 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 and the Global Minimum Tax Act have been filed with the Minister. Coordinating Amendments Bill C-59 111 (1) Subsections (2) to (34) apply if Bill C-59, introduced in the 1st session of the 44th Parliament and entitled the Fall Economic Statement Implementation Act, 2023 (in this section referred to as the “other Act”), receives royal assent. (2) On the first day on which both subsection 99(1) of the other Act and section 83 of this Act are in force, (a) paragraph 149(3)(i) of the English version of the Bankruptcy and Insolvency Act , as amended by subsection 99(1) of the other Act, is amended by striking out “and” at the end of paragraph 149(3)(i); (b) paragraph 149(3)(i) of the English version of the Bankruptcy and Insolvency Act , as amended by section 83 of this Act, is amended by striking out “and” at the end of paragraph 149(3)(i); (c) paragraph 149(3)(j) of the English version of the Bankruptcy and Insolvency Act , as enacted by subsection 99(1) of the other Act, is amended by adding “and” at the end of that paragraph 149(3)(j); and (d) paragraph 149(3)(j) of the Bankruptcy and Insolvency Act , as enacted by section 83 of this Act, is renumbered as 149(3)(k) and is repositioned accordingly if required. (3) On the first day on which both subsection 100(1) of the other Act and section 84 of this Act are in force, 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 , the Digital Services Tax Act or the Global Minimum Tax Act to which access is sought or that is proposed to be examined or communicated; and (4) On the first day on which both subsection 101(1) of the other Act and section 85 of this Act are in force, 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 , the Digital Services Tax Act and the Global Minimum Tax Act . (5) On the first day on which both subsection 102(1) of the other Act and section 86 of this Act are in force, subsection 229(2) of the Excise Tax 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 , the Digital Services Tax Act and the Global Minimum Tax Act have been filed with the Minister. (6) On the first day on which both subsection 103(1) of the other Act and section 87 of this Act are in force, subsection 230(2) of the Excise Tax 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 , the Digital Services Tax Act and the Global Minimum Tax Act have been filed with the Minister. (7) On the first day on which both subsection 104(1) of the other Act and section 88 of this Act are in force, subparagraph 238.1(2)(c)(iii) of the Excise Tax 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 , the Digital Services Tax Act and the Global Minimum Tax Act to be remitted or paid before that time by the registrant have been remitted or paid, and (8) On the first day on which both subsection 105(1) of the other Act and section 89 of this Act are in force, section 263.02 of the Excise Tax 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 , the Digital Services Tax Act and the Global Minimum Tax Act have been filed with the Minister. (9) On the first day on which both subsection 106(1) of the other Act and section 90 of this Act are in force, subsection 296(7) of the Excise Tax 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 , the Digital Services Tax Act and the Global Minimum Tax Act have been filed with the Minister. (10) On the first day on which both subsection 107(1) of the other Act and section 91 of this Act are in force, 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 , the Digital Services Tax Act or the Global Minimum Tax Act ; or (11) On the first day on which both subsection 108(1) of the other Act and section 92 of this Act are in force, 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 , the Digital Services Tax Act or the Global Minimum Tax Act . (12) On the first day on which both subsection 109(1) of the other Act and subsection 93 (1) of this Act are in force, 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 , the Digital Services Tax Act and the Global Minimum Tax Act when references or appeals to the Court are provided for in those Acts. (13) On the first day on which both subsection 109(2) of the other Act and subsection 93 (2) of this Act are in force, subsections 12(3) and (4) of the Tax Court of Canada 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 , section 80 or 81 of the Digital Services Tax Act or section 94 or 95 of the Global Minimum 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 , section 74 or 76 of the Digital Services Tax Act or section 88 or 90 of the Global Minimum Tax Act . (14) On the first day on which both subsection 111(1) of the other Act and section 95 of this Act are in force, subsection 18.31(2) of the Tax Court of Canada 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 , section 80 of the Digital Services Tax Act or section 94 of the Global Minimum 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. (15) On the first day on which both subsection 112(1) of the other Act and section 96 of this Act are in force, subsection 18.32(2) of the Tax Court of Canada 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 , section 81 of the Digital Services Tax Act or section 95 of the Global Minimum 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. (16) On the first day on which both subsection 114(1) of the other Act and section 98 of this Act are in force, (a) subparagraph 18(1)(t)(v) of the English version of the Income Tax Act , as amended by subsection 114(1) of the other Act, is amended by striking out “or” at the end of that subparagraph 18(1)(t)(v); (b) subparagraph 18(1)(t)(v) of the English version of the Income Tax Act , as amended by section 98 of this Act, is amended by striking out “or” at the end of that subparagraph 18(1)(t)(v); (c) subparagraph 18(1)(t)(vi) of the English version of the Income Tax Act , as enacted by subsection 114(1) of the other Act, is amended by adding “or” at the end of that subparagraph 18(1)(t)(vi); and (d) subparagraph 18(1)(t)(vi) of the Income Tax Act , as enacted by section 98 of this Act, is renumbered as 18(1)(t)(vii) and is repositioned accordingly if required. (17) On the first day on which both subsection 115(1) of the other Act and section 99 of this Act are in force, subsection 164(2.01) of the Income Tax 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 , the Digital Services Tax Act and the Global Minimum Tax Act have been filed with the Minister. (18) On the first day on which both subsection 116(1) of the other Act and section 100 of this Act are in force, the portion of subsection 221.2(2) of the Income Tax 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 , the Digital Services Tax Act or the Global Minimum 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, (19) On the first day on which both subsection 117(1) of the other Act and section 101 of this Act are in force, (a) subparagraph (a)(x) of the definition program legislation in section 2 of the English version of the Canada Revenue Agency Act , as amended by subsection 117(1) of the other Act, is amended by striking out “and” at the end of that subparagraph (a)(x); (b) subparagraph (a)(x) of the definition program legislation in section 2 of the English version of the Canada Revenue Agency Act , as amended by section 101 of this Act, is amended by striking out “and” at the end of that subparagraph (a)(x); (c) subparagraph (a)(xi) of the definition program legislation in section 2 of the English version of the Canada Revenue Agency Act , as enacted by subsection 117(1) of the other Act, is amended by adding “and” at the end of that subparagraph (a)(xi); and (d) subparagraph (a)(xi) of the definition program legislation in section 2 of the Canada Revenue Agency Act , as enacted by section 101 of this Act, is renumbered as (a)(xii) and is repositioned accordingly if required. (20) On the first day on which both subsection 118(1) of the other Act and section 102 of this Act are in force, 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 , the Digital Services Tax Act and the Global Minimum Tax Act . (21) On the first day on which both subsection 119(1) of the other Act and subsection 103 (1) of this Act are in force, 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 , the Digital Services Tax Act and the Global Minimum Tax Act ; or (22) On the first day on which both subsection 119(2) of the other Act and subsection 103 (2) of this Act are in force, clause 188(7)(b)(ii)(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 , the Digital Services Tax Act and the Global Minimum Tax Act , or (23) On the first day on which both subsection 120(1) of the other Act and section 104 of this Act are in force, subsection 189(4) of the Excise Act, 2001 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 , the Digital Services Tax Act and the Global Minimum Tax Act . (24) On the first day on which both subsection 122(1) of the other Act and section 105 of this Act are in force, 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 , the Digital Services Tax Act and the Global Minimum Tax Act have been filed with the Minister. (25) On the first day on which both subsection 123(1) of the other Act and section 106 of this Act are in force, 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 , the Digital Services Tax Act and the Global Minimum Tax Act have been filed with the Minister. (26) On the first day on which both subsection 124(1) of the other Act and section 107 of this Act are in force, section 48 of the Select Luxury Items Tax 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 , the Digital Services Tax Act and the Global Minimum Tax Act in respect of periods ending before the appointment have been filed and all amounts required to be paid under that Part and those Acts by the bankrupt in respect of those periods have been paid. (27) On the first day on which both subsection 125(1) of the other Act and section 108 of this Act are in force, the portion of subsection 53(3) of the Select Luxury Items Tax 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 , the Digital Services Tax Act or the Global Minimum Tax Act , an amount not exceeding the amount determined by the formula (28) On the first day on which both subsection 126(1) of the other Act and section 109 of this Act are in force, subsection 57(6) of the Select Luxury Items Tax 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 , the Digital Services Tax Act and the Global Minimum Tax Act have been filed with the Minister. (29) On the first day on which both subsection 127(1) of the other Act and section 110 of this Act are in force, section 94 of the Select Luxury Items Tax 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 , the Digital Services Tax Act and the Global Minimum Tax Act have been filed with the Minister. (30) On the first day on which both subsection 96(1) of the other Act and subsection 81 (1) of this Act are in force, section 62 of the Digital Services Tax Act is replaced by the following: 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 , the Select Luxury Items Tax Act and the Global Minimum Tax Act . (31) On the first day on which both subsection 96(1) of the other Act and subsection 81 (1) of this Act are in force, the description of B in paragraph 66(2)(a) of the Global Minimum Tax Act is replaced by the following: B is the total of all amounts, if any, the transferee was assessed under paragraph 97.44(1)(b) of the Customs Act , subsection 325(2) of the Excise Tax Act , subsection 160(2) of the Income Tax Act , subsection 297(3) of the Excise Act, 2001 , subsection 161(1) of the Greenhouse Gas Pollution Pricing Act , subsection 80(3) of the Underused Housing Tax Act , subsection 150(4) of the Select Luxury Items Tax Act or subsection 52(5) of the Digital Services Tax Act in respect of the property, and (32) On the first day on which both subsection 96(1) of the other Act and subsection 81 (1) of this Act are in force, section 76 of the Global Minimum Tax Act is replaced by the following: Restriction — unfulfilled filing requirements 76 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 , the Select Luxury Items Tax Act and the Digital Services Tax Act . (33) Section 54 of the Global Minimum Tax Act is replaced by the following: General anti-avoidance rule 54 (1) Section 245 of the Income Tax Act applies for the purposes of this Act with any modifications that the circumstances require. (2) For purposes of subsection (1), the following rules also apply: (a) a constituent entity of an MNE group located in Canada may file in prescribed manner with the Minister, on behalf of the MNE group, an information return in prescribed form and containing prescribed information in respect of a transaction (which, for the purposes of this section, includes an arrangement or event) or series of transactions (within the meaning of subsection 248(10) of the Income Tax Act ) as if subsection 237.3(12.1) of the Income Tax Act applied for the purposes of this Act; and (b) if a constituent entity files an information return in accordance with paragraph (a), any penalty otherwise applicable because of subsection 245(5.1) of the Income Tax Act does not apply in respect of the transaction or series. (34) Section 54 of the Global Minimum Tax Act , as enacted by subsection (33), applies to fiscal years of a qualifying MNE group beginning on or after December 31, 2023, except that any penalty imposed by the application of that section applies in respect of transactions that occur on or after the first day on which both this Act and the Fall Economic Statement Implementation Act, 2023 have received royal assent. PART 3 Amendments to the Excise Tax Act, the Excise Act, the Excise Act, 2001, the Underused Housing Tax Act, the Greenhouse Gas Pollution Pricing Act and Other Related Texts DIVISION 1 R.S., c. E- 15 Excise Tax Act (GST/HST) 112 (1) Sections 2 to 5 of Part II.1 of Schedule VI to the Excise Tax Act are repealed. (2) Subsection (1) applies to supplies made after April 2024. DIVISION 2 Excise Act, Excise Act, 2001 and Other Related Texts (Alcohol, Tobacco and Vaping Products) R.S., c. E- 14 Excise Act 113 (1) Section 170.2 of the Excise Act is amended by adding the following after subsection (2.1): Adjustment — 2024 (2.2) In respect of the inflationary adjusted year that is 2024, the description of B in paragraph (2)(a) is deemed to be equal to 1.02. Adjustment — 2025 (2.3) In respect of the inflationary adjusted year that is 2025, if the amount determined for B in paragraph (2)(a) without reference to this subsection is greater than 1.02, the description of B in that paragraph is deemed to be equal to 1.02. (2) Subsection (1) is deemed to have come into force on April 1, 2024. 114 (1) Paragraphs 1(a) to (c) of Part II.1 of the schedule to the Act are amended by replacing “10%” with “5%”. (2) Paragraphs 1(a) to (c) of Part II.1 of the schedule to the Act, as amended by subsection (1), are amended by replacing “5%” with “10%”. (3) Subsection (1) is deemed to have come into force on April 1, 2024. (4) Subsection (2) comes into force on April 1, 2026. 115 (1) Paragraphs 2(a) to (c) of Part II.1 of the schedule to the Act are amended by replacing “20%” with “10%”. (2) Paragraphs 2(a) to (c) of Part II.1 of the schedule to the Act, as amended by subsection (1), are amended by replacing “10%” with “20%”. (3) Subsection (1) is deemed to have come into force on April 1, 2024. (4) Subsection (2) comes into force on April 1, 2026. 116 (1) Paragraphs 3(a) to (c) of Part II.1 of the schedule to the Act are amended by replacing “40%” with “20%”. (2) Paragraphs 3(a) to (c) of Part II.1 of the schedule to the Act, as amended by subsection (1), are amended by replacing “20%” with “40%”. (3) Subsection (1) is deemed to have come into force on April 1, 2024. (4) Subsection (2) comes into force on April 1, 2026. 2002, c. 22 Excise Act, 2001 117 (1) Subsection 38(3) of the Excise Act, 2001 is replaced by the following: Exception for specified manufactured tobacco brands (3) A container of manufactured tobacco does not require tobacco markings to be printed on or affixed to it if the brand of the tobacco is not commonly sold in Canada and is specified by the Minister. (2) Paragraph 38(4)(a) of the Act is replaced by the following: (a) cigarettes of the particular type or formulation exported under that brand are cigarettes specified by the Minister; and (3) Subsections (1) and (2) come into force on the first day of the month after the month in which this Act receives royal assent. 118 (1) Paragraph 58(1)(a) of the Act is replaced by the following: (a) the tobacco product of that brand is specified by the Minister; (2) Paragraph 58(2)(a) of the Act is replaced by the following: (a) cigarettes of the particular type or formulation exported under that brand are cigarettes specified by the Minister; and (3) Subsections (1) and (2) come into force on the first day of the month after the month in which this Act receives royal assent. 119 (1) The definition adjustment day in section 58.1 of the Act is amended by striking out “or” at the end of paragraph (a.2) and by adding the following after that paragraph: (a.3) April 17, 2024; or (2) Subsection (1) is deemed to have come into force on April 17, 2024. 120 (1) Section 58.2 of the Act is amended by adding the following after subsection (1.2): Imposition of tax — 2024 increase (1.3) Subject to section 58.3, every person shall pay to His Majesty a tax on all taxed cigarettes of the person held at the beginning of April 17, 2024 at the rate of $0.02 per cigarette. (2) Subsection (1) is deemed to have come into force on April 17, 2024. 121 (1) Subsection 58.5(1) of the Act is amended by striking out “or” at the end of paragraph (a.2) and by adding the following after that paragraph: (a.3) in the case of the tax imposed under subsection 58.2(1.3), June 30, 2024; or (2) Subsection (1) is deemed to have come into force on April 17, 2024. 122 (1) Subsection 58.6(1) of the Act is amended by striking out “or” at the end of paragraph (a.2) and by adding the following after that paragraph: (a.3) in the case of the tax imposed under subsection 58.2(1.3), June 30, 2024; or (2) Subsection (1) is deemed to have come into force on April 17, 2024. 123 (1) Section 123.1 of the Act is amended by adding the following after subsection (2.1): Adjustment — 2024 (2.2) In respect of the inflationary adjusted year that is 2024, the description of B in paragraph (2)(a) is deemed to be equal to 1.02. Adjustment — 2025 (2.3) In respect of the inflationary adjusted year that is 2025, if the amount determined for B in paragraph (2)(a) without reference to this subsection is greater than 1.02, the description of B in that paragraph is deemed to be equal to 1.02. (2) Subsection (1) is deemed to have come into force on April 1, 2024. 124 (1) Section 135.1 of the Act is amended by adding the following after subsection (2.1): Adjustment — 2024 (2.2) In respect of the inflationary adjusted year that is 2024, the description of B in paragraph (2)(a) is deemed to be equal to 1.02. Adjustment — 2025 (2.3) In respect of the inflationary adjusted year that is 2025, if the amount determined for B in paragraph (2)(a) without reference to this subsection is greater than 1.02, the description of B in that paragraph is deemed to be equal to 1.02. (2) Subsection (1) is deemed to have come into force on April 1, 2024. 125 Subparagraph 211(6)(e)(x) of the Act is replaced by the following: (x) to an official solely for the administration or enforcement of the Tobacco and Vaping Products Act or the Cannabis Act , 126 (1) Paragraph 1(a) of Schedule 1 to the Act is replaced by the following: (a) $0.92883; or (2) Subsection (1) is deemed to have come into force on April 17, 2024. 127 (1) Paragraph 2(a) of Schedule 1 to the Act is replaced by the following: (a) $0.18576; or (2) Subsection (1) is deemed to have come into force on April 17, 2024. 128 (1) Paragraph 3(a) of Schedule 1 to the Act is replaced by the following: (a) $11.61031; or (2) Subsection (1) is deemed to have come into force on April 17, 2024. 129 (1) Paragraph 4(a) of Schedule 1 to the Act is replaced by the following: (a) $40.43121; or (2) Subsection (1) is deemed to have come into force on April 17, 2024. 130 (1) Subparagraph (a)(i) of Schedule 2 to the Act is replaced by the following: (i) $0.14533, or (2) Subsection (1) is deemed to have come into force on April 17, 2024. 131 (1) Subparagraphs 1(a)(i) and (ii) of Schedule 8 to the Act are replaced by the following: (i) for the first 10 millilitres of vaping substance in the vaping device or immediate container, $1.12 per 2 millilitres of vaping substance or fraction thereof, and (ii) for any additional amount of vaping substance in the vaping device or immediate container, $1.12 per 10 millilitres of vaping substance or fraction thereof; and (2) Subparagraphs 1(b)(i) and (ii) of Schedule 8 to the Act are replaced by the following: (i) for the first 10 grams of vaping substance in the vaping device or immediate container, $1.12 per 2 grams of vaping substance or fraction thereof, and (ii) for any additional amount of vaping substance in the vaping device or immediate container, $1.12 per 10 grams of vaping substance or fraction thereof. (3) Subsections (1) and (2) come into force or are deemed to have come into force on July 1, 2024. 132 (1) Subparagraphs 2(a)(i) and (ii) of Schedule 8 to the Act are replaced by the following: (i) for the first 10 millilitres of vaping substance, $1.12 per 2 millilitres of vaping substance or fraction thereof, and (ii) for any additional amount of vaping substance, $1.12 per 10 millilitres of vaping substance or fraction thereof; and (2) Subparagraphs 2(b)(i) and (ii) of Schedule 8 to the Act are replaced by the following: (i) for the first 10 grams of vaping substance, $1.12 per 2 grams of vaping substance or fraction thereof, and (ii) for any additional amount of vaping substance, $1.12 per 10 grams of vaping substance or fraction thereof. (3) Subsections (1) and (2) come into force or are deemed to have come into force on July 1, 2024. SOR/2003- 202 Regulations Relieving Special Duty on Certain Tobacco Products 133 (1) The Regulations Relieving Special Duty on Certain Tobacco Products are repealed. (2) Subsection (1) comes into force on the first day of the month after the month in which this Act receives royal assent. SOR/2003-288; 2018, c. 12, s. 108; 2022, c. 10, s. 116 Stamping and Marking of Tobacco, Cannabis and Vaping Products Regulations 134 (1) Section 4.01 of the Stamping and Marking of Tobacco, Cannabis and Vaping Products Regulations is amended by renumbering subsection (2) as subsection (3) and by adding the following after subsection (1): (2) If the Minister holds, at any time in a calendar month, security that a person has provided under subsection 25.1(3) of the Act and if the person is not a tobacco licensee throughout the calendar month, the person must file with the Minister an information return for the calendar month in respect of the possession and use of any tobacco excise stamps issued to the person. (2) Subsection (1) comes into force on the first day of the month after the month in which this Act receives royal assent. SOR/2011- 7 Regulations Respecting Prescribed Brands of Manufactured Tobacco and Prescribed Cigarettes 135 (1) The Regulations Respecting Prescribed Brands of Manufactured Tobacco and Prescribed Cigarettes are repealed. (2) Subsection (1) comes into force on the first day of the month after the month in which this Act receives royal assent. DIVISION 3 Underused Housing Tax Act and Underused Housing Tax Regulations 2022, c. 5, s. 10 Underused Housing Tax Act 136 (1) The definition excluded owner in section 2 of the Underused Housing Tax Act is replaced by the following: excluded owner  of a residential property for a calendar year means a person (other than a prescribed person) that, on December 31 of the calendar year, is an owner of the residential property (a) in the person’s capacity as a trustee of a trust that is (i) a specified Canadian trust, (ii) a mutual fund trust as defined in subsection 248(1) of the Income Tax Act , (iii) a real estate investment trust as defined in subsection 122.1(1) of the Income Tax Act , or (iv) a SIFT trust as defined in subsection 122.1(1) of the Income Tax Act ; (b) in the person’s capacity as a partner of a partnership that is a specified Canadian partnership; (c) in a capacity other than as a trustee of a trust or partner of a partnership if the person is (i) an individual who is a citizen or permanent resident, (ii) a specified Canadian corporation, (iii) a corporation incorporated or continued under the laws of Canada or a province whose shares are listed on a stock exchange in Canada for which a designation under section 262 of the Income Tax Act is in effect, (iv) a registered charity as defined in subsection 248(1) of the Income Tax Act , (v) a cooperative housing corporation , a hospital authority , a municipality , a public college , a school authority , or a university , as those terms are defined in subsection 123(1) of the Excise Tax Act , or a para-municipal organization as defined in section 1 of Part VI of Schedule V to that Act, (vi) an Indigenous governing body as defined in section 2 of the Department of Indigenous Services Act , (vii) His Majesty in right of Canada or a province or an agent of His Majesty in right of Canada or a province, (viii) a corporation incorporated or continued under the laws of Canada or a province, all or substantially all of the shares of which are owned or controlled by (A) a trust referred to in any of subparagraphs (a)(ii) to (iv), (B) a corporation referred to in subparagraph (iii), or (C) any combination of corporations or trusts referred to in clauses (A) and (B); or (d) if the person is (i) an individual who is a citizen or permanent resident and an owner of the residential property as a personal representative in respect of a deceased individual, or (ii) a prescribed person. ( propriétaire exclu ) (2) The definition ownership percentage in section 2 of the Act is replaced by the following: ownership percentage , in respect of a particular person that is an owner of a residential property for a calendar year, means (a) if prescribed circumstances exist, a prescribed percentage; (b) if paragraph (a) does not apply, if section 4.1 applies in respect of the particular person, if the land registration system or other similar system applicable where the residential property is located does not separately indicate a percentage of the ownership in respect of the residential property for each capacity in respect of which this Act applies to the particular person as a separate person under section 4.1, if the particular person indicates a particular percentage in their return for the residential property for the calendar year and if the Minister is satisfied that the particular percentage reasonably reflects the particular person’s percentage of the ownership in respect of the residential property, the particular percentage; and (c) if paragraphs (a) and (b) do not apply, (i) if the land registration system or other similar system applicable where the residential property is located indicates that the particular person holds a percentage of the ownership in respect of the residential property, that percentage, (ii) if the land registration system or other similar system applicable where the residential property is located indicates that a group of persons that includes the particular person holds a percentage of the ownership in respect of the residential property, that percentage divided by the total number of persons in the group, and (iii) in any other case, the percentage determined by the formula (100% − A) ÷ B where A is the sum of all percentages, each of which is a percentage of the ownership in respect of the residential property that is indicated in the land registration system or other similar system applicable where the residential property is located as being held by another person or a group of persons, and B is the total number of persons, determined without reference to section 4.1, each of which is an owner of the residential property in respect of which no percentage of the ownership in respect of the residential property is indicated in the land registration system or other similar system applicable where the residential property is located. ( pourcentage de propriété ) (3) Paragraph (e) of the definition owner in section 2 of the Act is replaced by the following: (e) a person that gives continuous possession of the land on which the residential property is situated to another person referred to in paragraph (b) or (c), or (4) Paragraph (a) of the definition specified Canadian partnership in section 2 of the Act is replaced by the following: (a) a partnership, each member of which is, on December 31 of the calendar year, (i) a person referred to in paragraph (c) of the definition excluded owner , (ii) a trust referred to in paragraph (a) of that definition, or (iii) a specified Canadian partnership; or (5) Paragraph (a) of the definition specified Canadian trust in section 2 of the Act is replaced by the following: (a) a trust under which each beneficiary having a beneficial interest in the residential property is, on December 31 of the calendar year, (i) a person referred to in paragraph (c) of the definition excluded owner , (ii) a trust referred to in paragraph (a) of that definition, or (iii) a specified Canadian partnership; or (6) Subsections (1), (4) and (5) are deemed to have come into force on January 1, 2023. (7) Subsections (2) and (3) are deemed to have come into force on January 1, 2022. 137 (1) The Act is amended by adding the following after section 4: Owner — multiple capacities 4. 1 If a person is an owner of a residential property in the person’s capacity as a partner of a partnership or a trustee of a trust, this Act applies to the person as if the person were a separate person in respect of (a) each partnership for which the person is an owner of the residential property in the person’s capacity as a partner of the partnership; (b) each trust for which the person is an owner of the residential property in the person’s capacity as a trustee of the trust; and (c) all other capacities in which the person is an owner of the residential property. (2) Subsection (1) is deemed to have come into force on January 1, 2022. 138 (1) The portion of subsection 6(3) of the Act before the formula is replaced by the following: Tax payable (3) Subject to this Act, every person that, on December 31 of a calendar year, is an owner of a residential property (other than an excluded owner of the residential property) must pay to His Majesty in right of Canada tax in respect of the residential property for the calendar year in the amount determined by the formula (2) Paragraphs 6(7)(a) and (b) of the Act are repealed. (3) Paragraph 6(8)(b) of the Act is replaced by the following: (b) a child, of the individual or the individual’s spouse or common-law partner, who occupies the dwelling unit for the purpose of authorized study at a designated learning institution as defined in section 211.1 of the Immigration and Refugee Protection Regulations . (4) Subsection (2) is deemed to have come into force on January 1, 2023. (5) Subsection (3) is deemed to have come into force on January 1, 2022. 139 Subsection 7(1) of the Act is replaced by the following: Return required 7 (1) A person that, on December 31 of a calendar year, is an owner of a residential property (other than an excluded owner of the residential property) is required to file a return for the residential property for the calendar year. 140 (1) The portion of the definition confidential information in subsection 32(1) of the Act after paragraph (b) is replaced by the following: but does not include information that does not directly or indirectly reveal the identity of the person to whom it relates and, for the purposes of applying subsections (3), (13) and (14) to a representative of a government entity that is not an official, includes only the information described in paragraph 211(6)(j) of the Excise Act, 2001 . ( renseignement confidentiel ) (2) Subsections 32(6) and (7) of the Act are replaced by the following: Disclosure of confidential information (6) Subsections 211(6) and (6.1) of the Excise Act, 2001 apply in this Act, with any modifications that the circumstances require, as if (a) the references in those subsections to the Excise Act, 2001 were references to this Act; (b) confidential information for the purposes of this Act were confidential information for the purposes of the Excise Act, 2001 ; (c) an authorized person for the purposes of this Act were an authorized person for the purposes of the Excise Act, 2001 ; and (d) a business number for the purposes of this Act were a business number for the purposes of the Excise Act, 2001 . (3) Subsections (1) and (2) are deemed to have come into force on January 1, 2022. 141 (1) Paragraph 47(1)(a) of the Act is replaced by the following: (a) $1,000 if the person is an individual or $2,000 if the person is not an individual; and (2) Subsection 47(2) of the Act is replaced by the following: Failure to file (2) If a person fails to file a return in respect of a residential property for a particular calendar year by December 31 of the following calendar year, for the purpose of calculating the total referred to in paragraph (1)(b), the tax calculated under section 6 in respect of the residential property for the particular calendar year is to be determined without reference to paragraphs 6(7)(c) to (f) and subsections 6(8) and (9) of this Act and paragraph 2(3)(a) of the Underused Housing Tax Regulations . (3) Subsection (1) is deemed to have come into force on January 1, 2022. (4) Subsection (2) applies in respect of returns for the 2023 and subsequent calendar years. 142 (1) The portion of subsection 62(2) of the Act before paragraph (a) is replaced by the following: Powers of authorized person (2) Subject to subsection (3), the authorized person may, at all reasonable times, for any purpose related to the administration or enforcement of this Act (2) Subsection 62(2) of the Act is amended by striking out “and” at the end of paragraph (a) and by replacing paragraph (b) with the following: (b) require any person 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. (3) Subsection 62(3) of the Act is replaced by the following: Prior authorization (3) If any place referred to in subsection (2) is a dwelling-house, the 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). (4) Paragraph 62(4)(a) of the Act is replaced by the following: (a) there are reasonable grounds to believe that the dwelling-house is a place referred to in subsection (2); 143 (1) Section 80 of the Act is amended by adding the following before subsection (1): Definition of transaction 80 (0.1) In this section, transaction includes an arrangement or event. (2) Section 80 of the Act is amended by adding the following after subsection (5): Anti-avoidance rules (6) For the purposes of this section, if a person transfers property to another person as part of a transaction or series of transactions, the following rules apply: (a) the transferor is deemed to not be dealing at arm’s length with the transferee at the time of the transfer of the property if (i) the transferor and the transferee do not deal at arm’s length at any time during the period beginning immediately prior to 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 (3) in respect of that amount) is deemed to have become payable in the calendar year of the transferor 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 (1)‍(d) is deemed to be the greater of (i) the amount otherwise determined for A in paragraph (1)‍(d) 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 the fair market value, at its lowest at any time during the period beginning immediately prior to the transaction or series of transactions and ending immediately after the transaction or series of transactions, of the consideration given by the transferee for the transfer of the property (other than any part of the consideration that is in a form that is cancelled or extinguished during that period and for which no property that is neither cancelled nor extinguished during that period is substituted) provided that the consideration is held by the transferor at that time. 144 Subsection 83(11) of the Act is replaced by the following: 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 a 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 the person and received by the person on the date that an electronic message is sent, to the electronic address most recently provided before that date 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 date revoked that authorization in a manner specified by the Minister. Date electronic notice sent – business account (11.1) For the purposes of this Act, a notice or other communication in respect of a person that is made available in electronic format such that it can be read or perceived by a person or computer system or other similar device and that refers to the business number of a person is presumed to be sent to the person and received by the person on the date that it is posted by the Minister in the secure electronic account in respect of the business number of the person, unless the person has requested, at least 30 days before that date, in a manner specified by the Minister, that such notices or other communications be sent by mail. 2022, c. 19, s. 116 Underused Housing Tax Regulations 145 (1) The Underused Housing Tax Regulations are amended by adding the following after section 1: Excluded Residential Property Prescribed property — excluded property 1. 1 For the purposes of the portion of the definition residential property in section 2 of the Act before paragraph (a), a particular residential condominium unit that is part of a building containing four or more residential condominium units is prescribed property if (a) a person that is the owner of all or substantially all of the residential condominium units in the building is the owner of the particular residential condominium unit; and (b) all or substantially all of those residential condominium units of which the person is the owner are held by the person for the purpose of providing individuals with continuous occupancy of a residential condominium unit as a place of residence or lodging for a period of at least one month. (2) Subsection (1) is deemed to have come into force on December 31, 2022. 146 (1) Paragraphs 2(2)(a) and (b) of the Regulations are replaced by the following: (a) an area that is, as determined in the census for 2021 as published by Statistics Canada, neither within a census metropolitan area nor within a specified census agglomeration; and (b) an area that is, as determined in the census for 2021 as published by Statistics Canada (i) within a census metropolitan area or specified census agglomeration, and (ii) not within a population centre. (2) Paragraphs 2(2)(a) and (b) of the Regulations, as enacted by subsection (1), are replaced by the following: (a) an area that is, as determined in the last census published by Statistics Canada before the calendar year, neither within a census metropolitan area nor within a specified census agglomeration; and (b) an area that is, as determined in the last census published by Statistics Canada before the calendar year (i) within a census metropolitan area or specified census agglomeration, and (ii) not within a population centre. (3) Subsection 2(3) of the Regulations is replaced by the following: Paragraph 6(7)(m) of Act — prescribed conditions (3) For the purposes of paragraph 6(7)(m) of the Act, each of the following paragraphs sets out conditions that are prescribed conditions for a calendar year and for the person and the particular residential property referred to in subsection 6(7) of the Act: (a) the particular residential property is used as a place of residence or lodging by the person or the person’s spouse or common-law partner for at least 28 days during the calendar year; or (b) the person, or another person that is related to the person, carries on business in Canada (in this paragraph referred to as the “operator”) and the particular residential property is held during the calendar year primarily to provide a place of residence or lodging to an individual at a location at which the individual is required to be in the performance of the individual’s duties as (i) an officer — being a person holding an office — or an employee of the operator, (ii) a contractor, or an employee of the contractor, engaged by the operator to render services at that location to the operator, or (iii) a subcontractor, or an employee of the subcontractor, engaged by a contractor referred to in subparagraph (ii) to render services at that location that are acquired by the contractor for the purpose of supplying services to the operator. (4) Paragraph 2(3)(a) of the Regulations, as enacted by subsection (3), is replaced by the following: (a) it is the case that (i) the particular residential property is used as a place of residence or lodging by the person or the person’s spouse or common-law partner for at least 28 days during the calendar year, (ii) the person indicates that no tax is payable in respect of the particular residential property under this paragraph and paragraph 6(7)(m) of the Act in the return filed under the Act by the person for the particular residential property and for the calendar year, and (iii) neither the person nor the person’s spouse or common-law partner indicates that no tax is payable in respect of any residential property other than the particular residential property under this paragraph and paragraph 6(7)(m) of the Act in a return filed under the Act by the person or the person’s spouse or common-law partner for the calendar year; or (5) Subsection (1) applies to the 2022 calendar year. (6) Subsections (2) and (3) apply to the 2023 and subsequent calendar years. (7) Subsection (4) applies to the 2024 and subsequent calendar years. DIVISION 4 2018, c. 12, s. 186 Greenhouse Gas Pollution Pricing Act (Part 1) 147 (1) The portion of the definition confidential information in subsection 107(1) of the Greenhouse Gas Pollution Pricing Act after paragraph (b) is replaced by the following: but does not include information that does not directly or indirectly reveal the identity of the person to whom it relates and, for the purposes of applying subsections (3), (13) and (15) to a representative of a government entity that is not an official, includes only the information described in paragraph 211(6)(j) of the Excise Act, 2001 . ( renseignement confidentiel ) (2) Subsections 107(6) and (7) of the Act are replaced by the following: Disclosure of confidential information — Excise Act, 2001 (6) Subsections 211(6) and (6.1) of the Excise Act, 2001 apply in this Part, with any modifications that the circumstances require, as if (a) the references in those subsections to the Excise Act, 2001 were references to this Part; (b) confidential information for the purposes of this Part were confidential information for the purposes of the Excise Act, 2001 ; (c) an authorized person for the purposes of this Part were an authorized person for the purposes of the Excise Act, 2001 ; and (d) a business number for the purposes of this Part were a business number for the purposes of the Excise Act, 2001 . Disclosure of confidential information (7) An official may provide (a) any confidential information to an official of the Department of the Environment solely for the purposes of Part 2 or the formulation or evaluation of greenhouse gas pollution pricing policy; (b) any confidential information relating to His Majesty in right of a province to an official of a department or agency of the Government of Canada, if His Majesty in right of the province or an agent of His Majesty in right of the province is not in compliance with this Part or has stated that it will not comply with this Part, solely for the purposes of the evaluation of, or the formulation of a response to, the non-compliance or statement; or (c) any confidential information relating to an agent of His Majesty in right of a province to an official of a department or agency of the Government of Canada, if the agent or His Majesty in right of the province is not in compliance with this Part or has stated that it will not comply with this Part, solely for the purposes of the evaluation of, or the formulation of a response to, the non-compliance or statement. (3) Paragraph 107(9)(a) of the Act is replaced by the following: (a) a representative of the government entity was provided with that information under subsection (6); and (4) Section 107 of the Act is amended by adding the following after subsection (9): Public disclosure — province or agent non-compliance (9.1) The Minister may communicate or otherwise make available to the public, in any manner that the Minister considers appropriate, confidential information relating to a person that is His Majesty in right of a province or an agent of His Majesty in right of a province if the following conditions are satisfied: (a) if the person is His Majesty in right of a province, it is the case that (i) the person is not in compliance with this Part or has publicly stated that it will not comply with this Part, or (ii) an agent of His Majesty in right of the province is not in compliance with this Part or has publicly stated that it will not comply with this Part; (b) if the person is an agent of His Majesty in right of a province, it is the case that (i) the person is not in compliance with this Part or has publicly stated that it will not comply with this Part, or (ii) His Majesty in right of the province is not in compliance with this Part or has publicly stated that it will not comply with this Part; and (c) the confidential information relates to (i) a registration status of, or the status of an application for registration by, the person under this Part, (ii) a return that is filed, or required to be filed, by the person under this Part, including information that is contained in the return or that could reasonably be expected to be contained in the return, (iii) an amount that is payable under this Part by or to the person, including a charge, rebate, net charge, penalty or amount of interest, (iv) a projection or estimation of an amount that is, or that could reasonably be expected to be, payable under this Part by or to the person, including a charge, rebate, net charge, penalty or amount of interest, (v) an amount that is assessed under this Part in relation to the person, (vi) the extent to which an amount referred to in any of subparagraphs (iii) to (v) has or has not been paid, (vii) an amount that is paid under this Part by or to the person, (viii) a quantity of fuel or combustible waste that is delivered, imported, brought into a listed province, used or otherwise quantified for purposes of this Part, (ix) a projection or estimation of a quantity of fuel or combustible waste that could reasonably be expected to be delivered, imported, brought into a listed province, used or otherwise quantified for purposes of this Part, (x) a step that is, or is not, taken or contemplated by the Minister in the administration or enforcement of this Part relating to the person, including information relating to the collection of an amount, an assessment, an objection to an assessment, an audit or an appeal or legal proceeding, (xi) a step that is or is not taken by the person in relation to its compliance or non-compliance with this Part, including information relating to the collection of an amount, an assessment, an objection to an assessment, an audit or an appeal or legal proceeding, or (xii) a declaration or representation made by the person relating to anything set out in subparagraphs (i) to (xi). His Majesty — information not confidential (9.2) Information relating to His Majesty in right of a province or an agent of His Majesty in right of a province that is communicated, or otherwise made available to the public, by the Minister under subsection (9.1) is deemed not to be confidential information for the purposes of this section and section 134. 148 Subsection 134(2) of the Act is replaced by the following: Offence — confidential information (2) Every person to whom confidential information has been provided for a particular purpose under subsection 107(6) or (7) 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 liable on summary conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 12 months, or to both. PART 4 Various Measures DIVISION 1 2022, c. 10 Budget Implementation Act, 2022, No. 1 (Extension of Prohibition on Purchase of Residential Property by Non-Canadians) 149 Subsection 237(2) of the Budget Implementation Act, 2022, No. 1 is replaced by the following: Fourth anniversary (2) Section 236 comes into force on the fourth anniversary of the day on which section 235 comes into force. DIVISION 2 Canada Mortgage Bonds Program R.S., c. N- 11 National Housing Act 150 Section 11 of the National Housing Act is replaced by the following: Maximum total 11 Despite anything in this Act, the total of the outstanding insured amounts of all insured loans may not exceed the sum of (a) eight hundred billion dollars, and (b) any additional amounts authorized by Parliament under an appropriation Act or other Act of Parliament on or after the day on which the Budget Implementation Act, 2024, No. 1 receives royal assent. 151 Section 11.1 of the Act is repealed. 2017, c. 20, s. 103 Borrowing Authority Act 152 Paragraph 4(b) of the Borrowing Authority Act is replaced by the following: (b) the total amount of money borrowed by way of the issue and sale of Canada Mortgage Bonds that are guaranteed by the Canada Mortgage and Housing Corporation, except if they are purchased by the Minister and are not resold, other than for the purpose of providing a source of temporary liquidity, and Coordinating Amendments 2020, c. 5 153 (1) In this section, other Act means the COVID- 19 Emergency Response Act. (2) If section 150 of this Act comes into force before subsection 47(2) of the other Act, then that subsection 47(2) and sections 49 and 50 of the other Act are repealed. (3) If section 49 of the other Act comes into force before section 151 of this Act, then that section 151 is deemed never to have come into force and is repealed. (4) If section 49 of the other Act comes into force on the same day as section 151 of this Act, then subsection 47(2) and sections 49 and 50 of the other Act are deemed never to have come into force and are repealed. DIVISION 3 National School Food Program Bilateral agreement 154 (1) The Minister of Families, Children and Social Development may enter into a bilateral agreement with the government of a province respecting a national program for providing food in schools. Payment out of C.R.F. (2) Any amount payable for the fiscal year beginning on April 1, 2024 under such a bilateral agreement is payable out of the Consolidated Revenue Fund. Maximum aggregate amount (3) The maximum aggregate amount that may be paid out under subsection (2) in respect of all provinces is $70,100,000. DIVISION 4 Student Loan Forgiveness R.S., c. S- 23 Canada Student Loans Act 155 The heading before section 11.1 of the Canada Student Loans Act is replaced by the following: Loan Forgiveness — Underserved Rural or Remote Communities 156 Subsection 11.1(1) of the Act is replaced by the following: Portion of loan forgiven 11.1 (1) The Minister may forgive an amount in respect of a guaranteed student loan to a borrower who meets the prescribed conditions and begins to work in an underserved rural or remote community as a (a) family physician; (b) nurse; (c) nurse practitioner; (d) early childhood educator; (e) dentist; (f) dental hygienist; (g) pharmacist; (h) midwife; (i) teacher; (j) social worker; (k) psychologist; (l) personal support worker; or (m) physiotherapist. 157 Paragraph 17(r) of the Act is replaced by the following: (r) defining the words and expressions “dental hygienist”, “dentist”, “early childhood educator”, “family physician”, “full-time student”, “midwife”, “nurse”, “nurse practitioner”, “part-time student”, “personal support worker”, “pharmacist”, “physiotherapist”, “psychologist”, “responsible officer of a lender”, “social worker”, “teacher” and “underserved rural or remote community” for the purposes of this Act; 1994, c. 28 Canada Student Financial Assistance Act 158 Subsection 2(2) of the Canada Student Financial Assistance Act is replaced by the following: Other definitions (2) In this Act, the words and expressions “borrower”, “consolidated student loan agreement”, “course”, “dental hygienist”, “dentist”, “early childhood educator”, “family income”, “family physician”, “financial assistance”, “full-time student”, “loan year”, “midwife”, “nurse”, “nurse practitioner”, “part-time student”, “period of studies”, “personal support worker”, “pharmacist”, “physiotherapist”, “post-secondary school level”, “program of studies”, “psychologist”, “severe permanent disability”, “social worker”, “student loan”, “student loan agreement”, “teacher” and “underserved rural or remote community” have the meanings assigned by the regulations. 159 The heading before section 9.2 of the Act is replaced by the following: Loan Forgiveness — Underserved Rural or Remote Communities 160 Subsection 9.2(1) of the Act is replaced by the following: Portion of loan forgiven 9.2 (1) The Minister may forgive an amount in respect of a student loan to a borrower who meets the prescribed conditions and begins to work in an underserved rural or remote community as a (a) family physician; (b) nurse; (c) nurse practitioner; (d) early childhood educator; (e) dentist; (f) dental hygienist; (g) pharmacist; (h) midwife; (i) teacher; (j) social worker; (k) psychologist; (l) personal support worker; or (m) physiotherapist. Coming into Force Order in council 161 This Division comes into force on a day to be fixed by order of the Governor in Council. DIVISION 5 2004, c. 26 Canada Education Savings Act Amendments to the Act 162 The definition primary caregiver in subsection 2(1) of the Canada Education Savings Act is replaced by the following: primary caregiver  means (a) in the case of a beneficiary, or a child referred to in subsections 6(1.1) to (1.3) and section 12.2, who is a qualified dependant, the eligible individual in respect of the beneficiary or child; and (b) in the case of a beneficiary, or a child referred to in subsections 6(1.1) to (1.3) and section 12.2, in respect of whom a special allowance is payable under the Children’s Special Allowances Act , the department, agency or institution that maintains the beneficiary or child. ( responsable ) 163 (1) Subsection 6(1) of the Act is replaced by the following: Canada Learning Bonds — application 6 (1) Subject to this Act and the regulations, on application to the Minister, in the form and manner approved by the Minister, the Minister may, in respect of a beneficiary under a registered education savings plan who was born after 2003 and is less than 31 years of age at the time of the application, pay to a trustee of a trust governed by the plan a Canada Learning Bond for the benefit of the trust. The Canada Learning Bond is to be paid on any terms and conditions that the Minister may specify by agreement between the Minister and the trustee. (2) Section 6 of the Act is amended by adding the following after subsection (1): Notice — automatic enrolment (1.1) If the Minister determines that a child born after 2023 would be eligible to have a Canada Learning Bond paid in their respect if they were a beneficiary under a registered education savings plan, the child’s Social Insurance Number is provided to the Minister and the child is not, to the Minister’s knowledge, a beneficiary under such a plan, the Minister must notify the child’s primary caregiver — in the form and manner that the Minister considers appropriate — that the child is eligible to have a Canada Learning Bond paid in their respect and that the Minister will open a registered education savings plan in respect of the child in accordance with subsections (1.2) and (1.3) for the purpose of paying the Canada Learning Bond. Opening of registered education savings plan by Minister (1.2) Subject to subsection (1.3), if the Minister determines that a child born after 2023 would be eligible to have a Canada Learning Bond paid in their respect if they were a beneficiary and the Minister is provided with the child’s Social Insurance Number, the Minister must open a registered education savings plan in respect of the child (a) if the child is less than three years of age on the day the Minister determines that the child is eligible, no earlier than the day on which the child reaches the age of four or no earlier than any other day determined by the Minister; or (b) if the child is three years of age or more on the day the Minister determines that the child is eligible, no earlier than the day that is 365 days after the day on which the Minister determines that the child is eligible or no earlier than any other day determined by the Minister. Exception (1.3) The Minister must not open a registered education savings plan in respect of a child under subsection (1.2) if the child’s primary caregiver or the primary caregiver’s cohabiting spouse or common-law partner has communicated to the Minister, in the form and manner approved by the Minister, their refusal of the payment of a Canada Learning Bond in respect of the child or if the child is a beneficiary. For greater certainty (1.4) For greater certainty, an application may be made to the Minister under subsection (1) in respect of a person even if a refusal referred to in subsection (1.3) was communicated to the Minister in respect of that person. (3) Section 6 of the Act is amended by adding the following after subsection (1.4): Canada Learning Bonds — automatic enrolment (1.5) If the Minister opens a registered education savings plan under subsection (1.2), subject to this Act and the regulations, the Minister may, in respect of the beneficiary under the plan, pay to a trustee of a trust governed by the plan a Canada Learning Bond for the benefit of the trust. The Canada Learning Bond is to be paid on any terms and conditions that the Minister may specify by agreement between the Minister and the trustee. (4) Subsection 6(4) of the Act is replaced by the following: Designation (4) The amount of a Canada Learning Bond payable under subsection (1) in respect of a benefit year is to be paid to the trustee of a trust designated, in the form and manner approved by the Minister, by the primary caregiver of the beneficiary, the primary caregiver’s cohabiting spouse or common-law partner or, if the beneficiary is 18 years of age or more, the beneficiary. 164 The portion of section 7 of the Act before paragraph (a) is replaced by the following: Conditions 7 Neither a CES grant nor a Canada Learning Bond payable under subsection 6(1) may be paid in respect of a beneficiary under a registered education savings plan unless 165 The Act is amended by adding the following after section 7: Conditions — automatic enrolment 7. 01 A Canada Learning Bond payable under subsection 6(1.5) must not be paid in respect of a beneficiary under a registered education savings plan unless the beneficiary is resident in Canada immediately before the payment is made. 166 The Act is amended by adding the following after section 7: Administration of registered education savings plans 7. 1 The Minister may enter into an agreement with a person respecting the administration of a registered education savings plan opened under subsection 6(1.2) or any other registered education savings plan identified by the Minister. The agreement may provide for the payment of remuneration by the Minister to the person for the administration of the plan. 167 Section 9 of the Act is replaced by the following: Payments out of C.R.F. 9 All amounts payable by the Minister under this Act, the regulations or an agreement entered into under section 7.1 or 12 must be paid out of the Consolidated Revenue Fund. 168 The Act is amended by adding the following after section 12.1: Collection of Social Insurance Number 12. 2 The Minister may collect the Social Insurance Number of any person who, as determined by the Minister, would be eligible to have a Canada Learning Bond paid in their respect if they were a beneficiary and, if the person is a child, the Social Insurance Number of the child’s primary caregiver and the primary caregiver’s cohabiting spouse or common-law partner. 169 (1) Section 13 of the Act is amended by adding the following after paragraph (c): (c.1) respecting the notice referred to in subsection 6(1.1), including providing for the maximum age of a child in respect of whom a notice is to be provided under that subsection; (c.2) respecting the opening of registered education savings plans by the Minister under subsection 6(1.2), including providing for the maximum age of a child in respect of whom such a plan may be opened under that subsection; (c.3) respecting the refusal referred to in subsection 6(1.3); (c.4) respecting the administration of the registered education savings plans referred to in section 7.1; (c.5) respecting agreements made under section 7.1, including specifying terms and conditions to be included in such agreements; (2) Section 13 of the Act is amended by adding the following after paragraph (c.3): (c.31) respecting payments under subsection 6(1.5); R.S., c. 1 (5th Supp.) Consequential Amendments to the Income Tax Act 170 (1) Paragraph (a) of the definition education savings plan in subsection 146.1(1) of the Income Tax Act is amended by striking out “and” at the end of subparagraph (iii) and by adding the following after subparagraph (iv): (v) the Minister designated for the purposes of the Canada Education Savings Act , and (2) The definition subscriber in subsection 146.1(1) 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) the Minister designated for the purposes of the Canada Education Savings Act , if that Minister entered into the plan with a promoter Coming into Force Order in council 171 (1) Section 162 , subsection 163 (2), sections 166 to 168 , subsection 169 (1) and section 170 come into force on a day to be fixed by order of the Governor in Council. Order in council (2) Subsections 163 (1), (3) and (4), sections 164 and 165 and subsection 169 (2) come into force on a day to be fixed by order of the Governor in Council, but that day must be later than the day fixed under subsection (1) and after March 31, 2028. DIVISION 6 R.S., c. B-7; R.S., c. 24 (1st Supp.), s. 3 Bretton Woods and Related Agreements Act 172 Paragraphs 8.3(5)(a) and (b) of the Bretton Woods and Related Agreements Act are replaced by the following: (a) fifteen billion dollars in respect of any particular foreign state; and (b) twenty-two billion dollars in respect of all foreign states. DIVISION 7 Measures Relating to Modernizing International Financial Institutions R.S., c. B-7; R.S., c. 24 (1st Supp.), s. 3 Bretton Woods and Related Agreements Act 173 Section 7 of the Bretton Woods and Related Agreements Act is replaced by the following: Payment to International Monetary Fund 7 The Minister of Finance may provide for payment out of the Consolidated Revenue Fund to the International Monetary Fund in the manner and at the times provided for by the Agreement set out in Schedule I of a sum or sums of money, not exceeding in the whole an amount equivalent to the subscriptions required from or permitted to be made by Canada, namely, sixteen billion, five hundred thirty-five million, nine hundred thousand Special Drawing Rights. R.S., c. I- 18 International Development (Financial Institutions) Assistance Act 174 (1) Paragraph 3(c) of the English version of the International Development (Financial Institutions) Assistance Act is replaced by the following: (c) the purchase on behalf of His Majesty in right of Canada of shares of the institution; (2) Section 3 of the Act is amended by striking out “and” at the end of paragraph (b) and by adding the following after paragraph (c): (d) with the written concurrence of the Minister of Finance, the issuance of guarantees; and (e) with the written concurrence of the Minister of Finance, any other manner that the Minister of Foreign Affairs considers appropriate. 1991, c. 12 European Bank for Reconstruction and Development Agreement Act 175 (1) The portion of subsection 6(2) of the European Bank for Reconstruction and Development Agreement Act before paragraph (a) is replaced by the following: Financial assistance (2) The Minister may provide financial assistance to the Bank by way of (2) Subsection 6(2) of the Act is amended by striking out “or” at the end of paragraph (a) and by adding the following after paragraph (b): (c) the purchase of shares on behalf of His Majesty in right of Canada; (d) the issuance of guarantees; or (e) any other manner that the Minister considers appropriate. (3) Subsection 6(3) of the Act is replaced by the following: Limit (3) The Minister may make payments out of the Consolidated Revenue Fund for the purposes of subsection (2) in an aggregate amount not exceeding, in any given period, the amount specified for that purpose in respect of that period in an appropriation by Parliament. DIVISION 8 2018, c. 27, s. 659 International Financial Assistance Act 176 The International Financial Assistance Act is amended by adding the following after section 7: Foreign exchange loss 7. 1 Any foreign exchange loss in respect of any transaction entered into in relation to a program referred to in section 3, 4 or 5 must be charged to the Consolidated Revenue Fund. Maximum payment 7.2 (1) The competent minister may, in relation to a program referred to in section 4 or 5, make payments not exceeding $720,000,000 in the aggregate, or any greater amount that is specified in an appropriation Act, to Development Finance Institute Canada. Payments out of Consolidated Revenue Fund (2) Any amount payable under subsection (1) may be paid by the competent minister out of the Consolidated Revenue Fund, at the times and in the manner that the minister considers appropriate. Separate account (3) Development Finance Institute Canada must maintain a separate account of (a) all amounts received under subsection (1); and (b) all amounts received by way of receipts and recoveries, and all disbursements made, in connection with all transactions involving the amounts received under subsection (1). Repayments (4) The competent minister may require Development Finance Institute Canada to pay to the Receiver General for credit to the Consolidated Revenue Fund any amount referred to in subsection (3) at the times and in the manner that the minister considers appropriate. Definition of Development Finance Institute Canada (5) In this section, Development Finance Institute Canada means Development Finance Institute Canada (DFIC) Inc., a corporation incorporated under the Canada Business Corporation Act , or any successor to that corporation. 177 The Act is amended by adding the following after section 8: Regulations 9 The Governor in Council may, on the recommendation of the Minister of Foreign Affairs and the Minister for International Development and with the concurrence of the Minister of Finance, make regulations for the purposes of section 7.2. DIVISION 9 R.S., c. E-20; 2001, c. 33, s. 2(F) Export Development Act 178 (1) The portion of subsection 24(1) of the Export Development Act before paragraph (a) is replaced by the following: Limit of liability 24 (1) Subject to subsection (2), in respect of transactions entered into under section 23, the total of the following liabilities and obligations must not at any time exceed $100,000,000,000: (2) Subsections 24(1.1) and (1.2) of the Act are repealed. DIVISION 10 R.S., c. F- 11 Financial Administration Act (Exemption Related to Certain Crown Corporations) 179 Subsection 85(2) of the Financial Administration Act is amended by striking out “or” at the end of paragraph (a) and by adding the following after that paragraph: (a.1) by or on behalf of the Communications Security Establishment for the purpose of performing its functions under the Communications Security Establishment Act ; or DIVISION 11 R.S., c. F- 11 Financial Administration Act (Information Disclosure Requirements) 180 Section 159 of the Financial Administration Act is amended by adding the following after subsection (3): Disclosure of information (4) Any bank or other financial institution of a class prescribed by regulations that accepts for deposit an instrument or instruction for payment described in subsection (2) must disclose any information prescribed by regulations made under subsection 160(2) in any statement of account or other transaction record that is provided to the holder of the account receiving the deposit. 181 Section 160 of the Act is renumbered as subsection 160(1) and is amended by adding the following: Classes of financial institutions and disclosure of information (2) The Governor in Council may make regulations prescribing classes of financial institutions and any information disclosure requirements referred to in subsection 159(4). DIVISION 12 R.S., c. F-8; 1995, c. 17, s. 45 Federal-Provincial Fiscal Arrangements Act 182 (1) Paragraph 24.1(1)(a) of the Federal-Provincial Fiscal Arrangements Act is amended by striking out “and” at the end of subparagraph (iv) and by replacing the portion of subparagraph (v) before the formula with the following: (v) for each fiscal year beginning after March 31, 2017, the product, rounded to the nearest thousand, obtained by multiplying the cash contribution determined under this subparagraph for the immediately preceding fiscal year by the greater of 1.03 and the amount determined by the formula (2) Paragraph 24.1(1)(a) of the Act is amended by striking out “and” at the end of subparagraph (v) and by adding the following after subparagraph (v): (vi) for each fiscal year in the period beginning on April 1, 2024, and ending on March 31, 2028, in respect of a qualifying province, the product, rounded to the nearest thousand, that is greater than zero, or zero in any other case, determined by the formula (1.05 × (A + B)) − C where A is the cash contribution determined under subparagraph (v) for the immediately preceding fiscal year, B is the cash contribution determined under this subparagraph, if any, for the immediately preceding fiscal year, and C is the cash contribution determined under subparagraph (v) for the current fiscal year, (vii) for the fiscal year beginning on April 1, 2028, in respect of a qualifying province, the product, rounded to the nearest thousand, determined by multiplying the cash contribution most recently determined under subparagraph (vi) that is greater than zero, or zero in any other case, by the greater of 1.03 and the amount determined by the formula 1 + A where A is the average of the annual rates of growth of the nominal gross domestic product of Canada for the calendar year that ends during the fiscal year in question and for the two previous calendar years, as determined by the Minister not later than three months before the beginning of that fiscal year, and (viii) for each fiscal year that begins after March 31, 2029, in respect of a qualifying province, the product, rounded to the nearest thousand, determined by the formula (A + B) × C where A is the cash contribution determined under subparagraph (vii) for the immediately preceding fiscal year that is greater than zero, or zero in any other case, B is the cash contribution determined under this subparagraph for the immediately preceding fiscal year that is greater than zero, or zero in any other case, and C is the greater of 1.03 and the amount determined by the formula 1 + D where D is the average of the annual rates of growth of the nominal gross domestic product of Canada for the calendar year that ends during the fiscal year in question and for the two previous calendar years, as determined by the Minister not later than three months before the beginning of that fiscal year; and (3) Section 24.1 of the Act is amended by adding the following after subsection (1): Meaning of qualifying province (1.1) For the purpose of this Part, a province is a qualifying province if the federal Minister of Health has confirmed in writing to the Minister before December 1, 2024 that the province has taken steps to implement certain measures respecting the collection, sharing and use of certain health information in accordance with the plan entitled Working together to improve health care for Canadians , announced on February 7, 2023. 183 Section 24.21 of the Act is replaced by the following: Provincial share — fiscal years 2014–2015 and later 24.21 (1) The cash contribution determined under subparagraphs 24.1(1)(a)(iv) or (v), as the case may be, that may be provided to a province for each fiscal year beginning after March 31, 2014 is the amount determined by the formula A × B ÷ C where A is the cash contribution determined under the applicable subparagraph for that fiscal year; B is the population of that province for that fiscal year; and C is the total of the population of all provinces for that fiscal year. Provincial share (qualifying province) — fiscal years 2024–2025 and later (2) The cash contribution determined under subparagraph 24.1(1)(a)(vi), (vii) or (viii), as the case may be, that may be provided to a qualifying province for each fiscal year beginning after March 31, 2024 is the amount determined by the formula A × B ÷ C where A is the cash contribution determined under the applicable subparagraph for that fiscal year; B is the population of that province for that fiscal year; and C is the total of the population of all provinces for that fiscal year. DIVISION 13 Private Sector Pension Plans R.S., c. 32 (2nd Supp.) Pension Benefits Standards Act, 1985 184 The Pension Benefits Standards Act, 1985 is amended by adding the following after section 40: Publication of Information Investment information 40. 1 Within a reasonable time after the end of each calendar year, the Superintendent shall, in the form and manner that may be prescribed, publish the prescribed information that relates to the investments of prescribed pension plans. 2012, c. 16 Pooled Registered Pension Plans Act 185 The Pooled Registered Pension Plans Act is amended by adding the following after section 43: Notice to certain members 43.1 (1) An administrator of a pooled registered pension plan must provide each person who becomes a member of the plan, other than under section 39 or 40, with a written notice that (a) informs the member of their right to terminate their membership in the plan by notifying the administrator; and (b) includes the prescribed information. Period for providing notice (2) The administrator must provide the notice (a) in the case of a survivor of a deceased member, as soon as feasible after the day on which the survivor becomes a member; and (b) in any other case, no later than the day on which the person becomes a member. Coming into Force Order in council 186 Sections 184 and 185 come into force on a day or days to be fixed by order of the Governor in Council. DIVISION 14 R.S., c. C- 8 Canada Pension Plan Amendments to the Act 187 (1) Paragraph (b) of the definition child in subsection 42(1) of the Canada Pension Plan is replaced by the following: (b) an individual in respect of whom, either legally or in fact, the contributor had, or immediately before the individual reached 21 years of age did have, parenting time or decision-making responsibility, (2) Paragraph (b) of the definition dependent child in subsection 42(1) of the Act is replaced by the following: (b) is 18 or more years of age but less than 25 years of age and (i) is in full-time attendance at a school or university as defined by regulation, or (ii) is in part-time attendance at a school or university as defined by regulation, or (3) Subsection 42(1) of the Act is amended by adding the following in alphabetical order: decision-making responsibility  has the same meaning as in subsection 2(1) of the Divorce Act ; ( responsabilités décisionnelles ) parenting time  means the time that a child spends in the care of a person who is a parent of the child, who stands in the place of a parent or who intends to stand in the place of a parent, whether or not the child is physically with that person during that entire time; ( temps parental ) 188 The Act is amended by adding the following after section 44.1: Survivor’s pension not payable 44. 2 Despite paragraph 44(1)(d), a survivor’s pension is not payable to an individual as a result of a contributor’s death if, on or after January 1, 2025, a division of unadjusted pensionable earnings has taken place under paragraph 55.1(1)(b) between the contributor and that individual unless, at the time of the contributor’s death, that individual had been cohabiting with the contributor in a new conjugal relationship for a continuous period of at least one year. 189 Section 57 of the Act is amended by adding the following after subsection (1.1): Additional amount (1.2) Despite subsection (1), a death benefit payable to the estate or succession of a contributor is a lump sum amount equal to $5,000 if (a) the contributor’s death occurs after December 31, 2024; (b) a death benefit is payable to the contributor’s estate or succession under paragraph 44(1)(c); (c) the contributor has not received a retirement pension or a disability pension under this Act or under a provincial pension plan; and (d) no survivor’s pension is payable under paragraph 44(1)(d) as a result of the contributor’s death. 190 (1) The portion of section 59 of the Act before paragraph (a) is replaced by the following: Amount of benefit 59 (1) Except in the case of a dependent child described in subparagraph (b)(ii) of the definition dependent child in subsection 42(1), a disabled contributor’s child’s benefit payable to the child of a disabled contributor and an orphan’s benefit payable to the orphan of a contributor, is a basic monthly amount consisting of (2) Section 59 of the Act is amended by adding the following after subsection (1): Benefit — part-time student (2) In the case of a dependent child described in subparagraph (b)(ii) of the definition dependent child in subsection 42(1), a disabled contributor’s child’s benefit payable to the child of a disabled contributor and an orphan’s benefit payable to the orphan of a contributor, is a basic monthly amount equal to 50% of the amount that would otherwise be calculated under paragraph (1)(c). 191 (1) Subsection 60(3) of the Act is replaced by the following: Exception (3) If a disabled contributor’s child’s benefit would, if the application had been approved, have been payable to a child of a disabled contributor on application made prior to the death of the child or an orphan’s benefit would, if the application had been approved, have been payable to an orphan of a contributor on application made prior to the death of the orphan and the child or orphan dies after December 31, 1977, not having reached 18 years of age, and no application has been made at the time of the death of the child or orphan, an application may be made within one year after the death by the person or agency having decision-making responsibility in respect of the child or orphan at the time of the death or, if there is at that time no such person or agency, by any person or agency that the Minister may direct. (2) Paragraph 60(5)(b) of the Act is replaced by the following: (b) on the date of the death of a child or an orphan referred to in subsection (3) if the person or agency having decision-making responsibility in respect of the child or orphan did not make an application prior to the death of the child or orphan. (3) Section 60 of the Act is amended by adding the following after subsection (11): Disabled contributor’s child’s benefit application (11.1) If an application for a disability pension or a post-retirement disability benefit is deemed, under subsection (8) or (9), to have been made in a month that precedes the month in which it was actually made, the Minister may also deem the application for a disabled contributor’s child’s benefit to have been made on behalf of the contributor’s child in that same month. 192 Section 73 of the Act is amended by adding the following after subsection (2): Cessation of payment (3) Despite subsection (1), a survivor’s pension shall cease with the payment for the month of the effective date of the approval of a division of unadjusted pensionable earnings between the survivor and the contributor under paragraph 55.1(1)(b) unless, at the time of the contributor’s death, the survivor had been cohabiting with the contributor in a new conjugal relationship for a continuous period of at least one year. 193 Section 75 of the Act is replaced by the following: Payment of benefit 75 (1) If a disabled contributor’s child’s benefit is payable to a child of a disabled contributor or an orphan’s benefit is payable to an orphan of a contributor and the child or orphan has not reached 18 years of age, payment of the benefit must be made to the person or agency having decision-making responsibility for the child or orphan, or, if there is no person or agency having decision-making responsibility for the child or orphan, to any person or agency that the Minister may direct. Presumption — decision-making responsibility (2) For the purposes of this Part, in the absence of any evidence to the contrary, the following person is presumed to have decision-making responsibility for the child or orphan, as the case may be: (a) the contributor, in relation to a disabled contributor’s child, except if the contributor has less than 20% of the parenting time in respect of the child; and (b) the survivor, if any, of the contributor, in relation to an orphan, except if the survivor has less than 20% of the parenting time in respect of the orphan. 194 (1) Paragraph 76(1)(c) of the Act is replaced by the following: (c) the contributor’s disability pension or post-retirement disability benefit ceases to be payable for any reason other than that the contributor has reached 65 years of age; (2) Paragraph 76(1)(e) of the Act is replaced by the following: (e) the disabled contributor ceases to have parenting time or decision-making responsibility in respect of the child, if the child is a child as defined in subsection 42(1) by reason of the disabled contributor having had that parenting time or decision-making responsibility. C.R.C., c. 385 Consequential Amendment to the Canada Pension Plan Regulations 195 Subparagraphs 52(i)(iii) and (iv) of the Canada Pension Plan Regulations are replaced by the following: (iii) was a child, in respect of whom, either legally or in fact, the contributor had parenting time or decision-making responsibility, (iv) is a child, in respect of whom, the disabled contributor, the survivor of the contributor or another person or agency had decision-making responsibility, Coming into Force Non-application — subsection 114(2) of Canada Pension Plan 196 (1) Subsection 114(2) of the Canada Pension Plan does not apply in respect of the amendments to that Act contained in this Division. Order in council (2) This Division, other than subsections 187 (1) and (3), sections 191 and 193 , subsection 194 (2) and section 195 , comes into force, in accordance with subsection 114(4) of the Canada Pension Plan , on a day to be fixed by order of the Governor in Council. DIVISION 15 1999, c. 34 Public Sector Pension Investment Board Act 197 The Public Sector Pension Investment Board Act is amended by adding the following after section 5.1: Payment into Consolidated Revenue Fund Duty of Board 5.2 (1) The Board shall, at the request of the Minister, pay into the Consolidated Revenue Fund (a) any amount that is required for the payment of benefits under subsection 44.2(6) of the Public Service Superannuation Act , subsection 55.2(6) of the Canadian Forces Superannuation Act or regulations made under section 59.1 of that Act, or subsection 29.2(6) of the Royal Canadian Mounted Police Superannuation Act ; (b) any amount that is determined under paragraph 44.4(2)(b) of the Public Service Superannuation Act , paragraph 55.4(2)(b) of the Canadian Forces Superannuation Act or paragraph 29.4(2)(b) of the Royal Canadian Mounted Police Superannuation Act ; and (c) any amount that is required for the payment of the costs determined under section 44.5 of the Public Service Superannuation Act , section 55.5 of the Canadian Forces Superannuation Act or section 29.5 of the Royal Canadian Mounted Police Superannuation Act or the costs for the administration of a fund established by regulations made under section 59.1 of the Canadian Forces Superannuation Act . Consultation (2) Before requesting the payment of an amount referred to in paragraph (1)(a) or (c), the Minister shall consult (a) the Minister of National Defence if the amount is in relation to the Canadian Forces Superannuation Act ; and (b) the Minister of Public Safety and Emergency Preparedness if the amount is in relation to the Royal Canadian Mounted Police Superannuation Act . DIVISION 16 Consumer-Driven Banking Framework Consumer-Driven Banking Act Enactment of Act 198 The Consumer-Driven Banking Act is enacted as follows: An Act to establish a consumer-driven banking framework Short Title Short title 1 This Act may be cited as the Consumer-Driven Banking Act . Interpretation Definitions 2 The following definitions apply in this Act. Agency  means the Financial Consumer Agency of Canada established under section 3 of the Financial Consumer Agency of Canada Act . ( Agence ) derived data  means data about a consumer, product or service that has been enhanced by a participating entity to significantly increase its usefulness or commercial value. ( données dérivées ) entity  means a corporation, trust, partnership, fund or an unincorporated association or organization. ( entité ) Minister  means the Minister of Finance. ( ministre ) Senior Deputy Commissioner  means the Senior Deputy Commissioner for Consumer-Driven Banking appointed under subsection 7.2(1) of the Financial Consumer Agency of Canada Act . ( commissaire adjoint principal ) Purpose Purpose 3 The purpose of this Act is to establish a framework within which consumers, including small businesses, can direct that their data be shared among participating entities of their choice and to ensure that the sharing of data among participating entities is safe and secure. Application Data 4 (1) This Act applies in respect of data that relates to the following products and services, including data that is provided by a consumer and data that is provided for in the regulations: (a) deposit accounts; (b) registered and non-registered investment accounts; (c) payment products, including credit cards and prepaid payment products; (d) lines of credit, mortgages or hypothecs and other kinds of loans; and (e) other products or services provided for in the regulations. Exclusion (2) This Act does not apply in respect of derived data. Limit — editing data 5 Data that is shared between participating entities in accordance with this Act is to be shared in a manner that does not enable the participating entity that receives the data to edit the data on servers that are used by the participating entity that provides the data. Restriction 6 Nothing in this Act affects any restriction imposed under the Bank Act on banks with respect to the sharing of information about a consumer with an insurance company, agent or broker for the business of insurance. Registry Participating entities 7 The Agency must maintain a public registry of participating entities that contains information respecting each participating entity. Technical Standards Designation of body 8 (1) The Minister may, by order, designate a body to be the technical standards body that is responsible for establishing the technical standards that are to be used for the sharing of data by participating entities in accordance with this Act. Principles (2) In designating the technical standards body, the Minister must take into account the following principles: (a) the need to ensure the safe, secure and efficient sharing of data among participating entities; (b) fairness, accessibility, transparency and good governance; (c) any other principle that the Minister considers relevant; and (d) any other principle provided for in the regulations. Publication in Canada Gazette (3) The Minister must publish the order in the Canada Gazette . Review 9 The Minister must review the designation every three years. Revocation 10 (1) The Minister may, by order, revoke the designation, including in the following circumstances: (a) the Senior Deputy Commissioner advises the Minister to do so; (b) the Minister is of the opinion that the designation is no longer consistent with the principles referred to in subsection 8 (2); (c) the Minister is of the opinion that the designation poses a risk to national security; or (d) the Minister is of the opinion that the designation poses a risk to the integrity or security of the financial system in Canada. Publication in Canada Gazette (2) The Minister must publish the order in the Canada Gazette . Statutory Instruments Act 11 The Statutory Instruments Act does not apply to an order made under subsection 8 (1) or 10 (1). Annual report 12 The technical standards body that is designated must submit an annual report to the Senior Deputy Commissioner in accordance with the regulations. Change that has significant impact 13 The technical standards body that is designated must notify the Senior Deputy Commissioner of any change that has a significant impact on the technical standards body or the technical standards, including any change to the operation of the technical standards or the governance, composition or decision-making of the technical standards body, as soon as feasible but no later than the seventh day after the day on which the change takes effect. Prohibitions Claiming to be participating entity 14 An individual or entity, other than a participating entity, must not (a) use the term “participating entity” or a variation, abbreviation or equivalent of that term, or any words, name or designation — in any language — in a manner that leads to a reasonable belief that the individual or entity is a participating entity for the purposes of this Act; or (b) represent themselves, in any way or by any means, to be a participating entity for the purposes of this Act. False or misleading information 15 An individual or entity must not knowingly provide false or misleading information in relation to their participation under this Act. Offences and Punishment Offence and punishment 16 Every individual or entity who contravenes section 14 or 15 is guilty of an offence and is liable (a) on conviction on indictment, (i) in the case of an individual, to a fine of not more than $1,000,000 or to imprisonment for a term of not more than five years, or to both, or (ii) in the case of an entity, to a fine of not more than $5,000,000; or (b) on summary conviction, (i) in the case of an individual, to a fine of not more than $100,000 or to imprisonment for a term of not more than one year, or to both, or (ii) in the case of an entity, to a fine of not more than $500,000. Order to comply 17 (1) If an individual or entity is convicted of an offence under this Act, the court may, in addition to any punishment that it may otherwise impose, order the individual or entity to comply with the provisions of this Act or the regulations in respect of which the individual or entity was convicted. Additional fine (2) If an individual or entity is convicted of an offence under this Act, the court may, if it is satisfied that as a result of the commission of the offence the convicted individual or entity acquired any monetary benefits or that monetary benefits accrued to the convicted individual or entity or the individual’s spouse, common-law partner or other dependant, order the convicted individual or entity to pay, despite the maximum amount of any fine that may otherwise be imposed under this Act, an additional fine in an amount equal to three times the court’s estimation of the amount of those monetary benefits. Party to offence 18 If an entity commits an offence under this Act, any director, any officer, any agent or mandatary or any principal officer of the entity who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on summary conviction or on conviction on indictment to the punishment provided for an individual in respect of the offence, whether or not the entity has been prosecuted or convicted. Limitation period 19 (1) Proceedings by way of summary conviction in respect of an offence under this Act may be commenced at any time within, but not later than, two years after the day on which the subject matter of the proceedings became known to the Senior Deputy Commissioner. Certificate of Senior Deputy Commissioner (2) A document appearing to have been issued by the Senior Deputy Commissioner, certifying the day on which the subject matter of any proceedings became known to the Senior Deputy Commissioner, is admissible in evidence without proof of the signature or official character of the person appearing to have signed it and is, in the absence of evidence to the contrary, proof of the matter asserted in it. Regulations Regulations 20 The Governor in Council may, on the recommendation of the Minister, make regulations (a) providing for data for the purposes of subsection 4 (1); (b) providing for products and services for the purposes of paragraph 4 (1)(e); (c) providing for principles for the purposes of paragraph 8 (2)(d); and (d) respecting the annual report referred to in section 12 , including the information that is to be included in the report and the form and manner in which, and the time within which, it is to be submitted. Coming into Force Order in council 21 Sections 4 to 7 , 12 and 13 come into force on a day or days to be fixed by order of the Governor in Council. 2001, c. 9 Related Amendments to the Financial Consumer Agency of Canada Act 199 Section 2 of the Financial Consumer Agency of Canada Act is amended by adding the following in alphabetical order: participating entity  means a participating entity under the Consumer-Driven Banking Act . ( entité participante ) Senior Deputy Commissioner  means the Senior Deputy Commissioner for Consumer-Driven Banking appointed under subsection 7.2(1). ( commissaire adjoint principal ) technical standards body  means the technical standards body designated under subsection 8(1) of the Consumer-Driven Banking Act . ( organisme de normalisation technique ) 200 Section 2.1 of the Act is replaced by the following: Supervision and protection 2. 1 The purpose of this Act is to ensure that financial institutions, the external complaints body, payment card network operators, participating entities and the technical standards body are supervised by an agency of the Government of Canada so as to contribute to the protection of consumers of financial products and services and the public and to the safety and security of consumer-driven banking, including by strengthening the financial literacy of Canadians. 201 Section 3 of the Act is amended by adding the following after subsection (3): Objects — consumer-driven banking (4) The objects of the Agency in relation to consumer-driven banking are to (a) supervise the participating entities, the external complaints body and the technical standards body to determine whether they are in compliance with (i) the provisions of the Consumer-Driven Banking Act that are applicable to them, and (ii) any terms and conditions or undertakings with respect to consumer-driven banking that the Minister imposes or requires, as the case may be, under an Act listed in Schedule 1 and the directions that the Minister imposes under this Act; (b) monitor and evaluate trends and emerging issues that may have an impact on consumers of consumer-driven banking, including the trends and issues in respect of products, services and market developments, and make information on those trends and issues public; (c) foster — in co-operation with any department, agency or agent corporation of the Government of Canada or of a province, financial institutions and consumer and other organizations — participation in consumer-driven banking; and (d) foster an understanding of consumer-driven banking and related issues among consumers. 202 Subsection 5.1(1) of the Act is replaced by the following: Minister’s direction 5.1 (1) The Minister may give a written direction to the Agency if the Minister is of the opinion that it can strengthen consumer protection and the public’s confidence in that protection, foster safe and secure consumer-driven banking or enhance the financial literacy of Canadians. 203 The Act is amended by adding the following after section 7.1: Senior Deputy Commissioner Appointment 7.2 (1) The Commissioner must, with the Minister’s concurrence, appoint an officer to be called the Senior Deputy Commissioner for Consumer-Driven Banking who is to act under the instructions of the Commissioner and who is responsible for consumer-driven banking matters. Absence or incapacity (2) In the event of the absence or incapacity of the Senior Deputy Commissioner, or if the office of Senior Deputy Commissioner is vacant, the Commissioner may appoint a qualified person to exercise the powers and perform the duties and functions of the Senior Deputy Commissioner for a term of 90 days that may not be extended without the Minister’s approval. Role 7.3 (1) Subject to the supervision referred to in paragraph 4(2)(a.1) of the Office of the Superintendent of Financial Institutions Act , the Senior Deputy Commissioner is responsible for the supervision of consumer-driven banking. Powers, duties and functions (2) The Senior Deputy Commissioner may exercise the powers, and must perform the duties and functions, that relate to consumer-driven banking and that are conferred on them under this Act or any other Act of Parliament. Personal information (3) The Senior Deputy Commissioner may collect any personal information that the Senior Deputy Commissioner considers necessary in furtherance of the objects described in subsection 3(4). Publication of information 7. 4 The Senior Deputy Commissioner must publish, in the prescribed time and manner, the prescribed information respecting consumer-driven banking. 204 The Act is amended by adding the following after section 9: Exercise by personnel — Senior Deputy Commissioner 9. 1 Except as otherwise provided by the Senior Deputy Commissioner and subject to any terms and conditions that they may specify, a person who is an employee of the Agency — other than a Deputy Commissioner — may exercise any of the powers and perform any of the duties and functions of the Senior Deputy Commissioner under this Act if the person is appointed to serve in the Agency in a capacity appropriate to the exercise of the power or performance of the duty or function. 205 Section 10 of the Act is replaced by the following: Employees 10 The employees that are necessary to enable the Commissioner and the Senior Deputy Commissioner to perform their duties are to be appointed in accordance with the Public Service Employment Act . 206 Subsection 11(1) of the Act is replaced by the following: Responsibility for human resources management 11 (1) In respect of persons appointed under sections 7.2, 8 and 10, the Commissioner is authorized to exercise the powers and perform the functions of the Treasury Board that relate to human resources management within the meaning of paragraphs 7(1)(b) and (e) and section 11.1 of the Financial Administration Act , and those of deputy heads under subsection 12(2) of that Act, as that subsection reads without regard to any terms and conditions that the Governor in Council may direct, including the determination of terms and conditions of employment and the responsibility for employer and employee relations. 207 The Act is amended by adding the following after section 12: Advisory and Other Committees Advisory and other committees 12.1 (1) The Commissioner may, on the advice of the Senior Deputy Commissioner, establish advisory and other committees to advise or assist the Senior Deputy Commissioner on matters relating to consumer-driven banking and provide for their membership, duties, functions and operation. Remuneration and expenses (2) Members of a committee may be paid for their services the remuneration and expenses that the Commissioner may determine, in accordance with any applicable Treasury Board directives. 208 Subsection 13(3) of the Act is replaced by the following: Payment for activity (3) If the Agency carries on any activity in furtherance of an object described in paragraph 3(2)(d) or (e) or subsection 3(4) on the Minister’s recommendation, the Minister may on terms and conditions approved by the Treasury Board, in any fiscal year, make a payment out of the Consolidated Revenue Fund to the Agency for the purposes of the activity. 209 (1) Subsection 14(1) of the Act is replaced by the following: Ownership 14 (1) The Commissioner, a person appointed under subsection 4(4), the Senior Deputy Commissioner, a person appointed under subsection 7.2(2) or a Deputy Commissioner must not hold, directly or indirectly, any interest or right in any shares of any financial institution, any bank holding company, any insurance holding company, the external complaints body or any other body corporate, however created, carrying on any business in Canada that is substantially similar to any business carried on by any financial institution or the external complaints body. (2) The portion of subsection 14(2) of the Act before paragraph (a) is replaced by the following: Prohibitions — federal credit union (2) The Commissioner, a person appointed under subsection 4(4), the Senior Deputy Commissioner, a person appointed under subsection 7.2(2) or a Deputy Commissioner must not 210 Section 14.1 of the Act is replaced by the following: Ownership — payment card network operators 14. 1 The Commissioner, a person appointed under subsection 4(4), the Senior Deputy Commissioner, a person appointed under subsection 7.2(2) or a Deputy Commissioner must not hold, directly or indirectly, any interest or right in any shares of a payment card network operator. Ownership — participating entities, etc. 15 The Commissioner, a person appointed under subsection 4(4), the Senior Deputy Commissioner, a person appointed under subsection 7.2(2) or a Deputy Commissioner must not hold, directly or indirectly, any interest or right in any shares of a participating entity or the technical standards body. 211 (1) Subsections 16(1) and (1.1) of the Act are replaced by the following: No grant or gratuity to be made 16 (1) The Commissioner, a person appointed under subsection 4(4), the Senior Deputy Commissioner, a person appointed under subsection 7.2(2), a Deputy Commissioner and any person appointed under section 10 must not accept or receive, directly or indirectly, any grant or gratuity from a financial institution, a bank holding company, an insurance holding company or the external complaints body or from a director, officer or employee of any of them and a financial institution, a bank holding company, an insurance holding company and the external complaints body, and any director, officer or employee of any of them, must not make or give any such grant or gratuity. No grant or gratuity — payment card network operators (1.1) The Commissioner, a person appointed under subsection 4(4), the Senior Deputy Commissioner, a person appointed under subsection 7.2(2), a Deputy Commissioner and any person appointed under section 10 must not accept or receive, directly or indirectly, any grant or gratuity from a payment card network operator or any of its directors, officers or employees, and a payment card network operator or any of its directors, officers or employees must not make or give any such grant or gratuity. No grant or gratuity — participating entities, etc. (1.2) The Commissioner, a person appointed under subsection 4(4), the Senior Deputy Commissioner, a person appointed under subsection 7.2(2), a Deputy Commissioner and any person appointed under section 10 must not accept or receive, directly or indirectly, any grant or gratuity from a participating entity or the technical standards body, or any of their directors, officers or employees, and a participating entity or the technical standards body, or any of their directors, officers or employees, must not make or give any such grant or gratuity. (2) The portion of subsection 16(2) of the Act before paragraph (a) is replaced by the following: Offence and punishment (2) Every person, financial institution, bank holding company, insurance holding company, payment card network operator, participating entity or technical standards body that contravenes subsection (1), (1.1) or (1.2) is guilty of an offence and liable 212 Section 17 of the Act is amended by adding the following after subsection (4): Confidential information — participating entities, etc. (5) Subject to subsection (6) and except as otherwise provided in this Act, information regarding the business or affairs of a participating entity, the external complaints body or the technical standards body, or regarding persons dealing with a participating entity, the external complaints body or the technical standards body, that is obtained by the Senior Deputy Commissioner or by a person acting under the direction of the Senior Deputy Commissioner, in the course of the exercise or performance of powers, duties and functions under section 7.3, and any information prepared from that information, is confidential and must be treated accordingly. Disclosure permitted (6) If the Senior Deputy Commissioner is satisfied that the information will be treated as confidential by the agency, body or person to whom it is disclosed, subsection (5) does not prevent the Senior Deputy Commissioner from disclosing it (a) to any government agency or body that regulates or supervises financial institutions or participating entities, for purposes related to that regulation or supervision; (b) to any other agency or body that regulates or supervises financial institutions or participating entities, for purposes related to that regulation or supervision; (c) to the Governor of the Bank of Canada or any officer of the Bank of Canada authorized in writing by the Governor of the Bank of Canada, for purposes related to the regulation or supervision of participating entities; and (d) to the Deputy Minister of Finance or any officer of the Department of Finance authorized in writing by the Deputy Minister of Finance, for the purposes of policy analysis related to the regulation of financial institutions or participating entities. 213 (1) Subsection 18(1) of the Act is replaced by the following: Commissioner to ascertain expenses 18 (1) The Commissioner must, before December 31 in each year, ascertain the total amount of expenses incurred during the immediately preceding fiscal year for or in connection with the administration of this Act and the consumer provisions — excluding the expenses incurred in connection with the objects described in subsections 3(3) and (4) — and the amounts of any prescribed categories of those expenses in relation to any prescribed group of financial institutions and the external complaints body. (2) Section 18 of the Act is amended by adding the following after subsection (5.5): Commissioner to ascertain expenses — participating entities (5.6) The Commissioner must, before December 31 in each year, ascertain the total amount of expenses incurred during the immediately preceding fiscal year in connection with the objects described in subsection 3(4). Amount conclusive (5.7) The amount ascertained under subsection (5.6) is final and conclusive for the purposes of this section. Assessment (5.8) As soon as possible after ascertaining the amount under subsection (5.6), the Commissioner must assess a portion of the total amount of expenses against each participating entity to the extent and in the manner that may be prescribed. Interim assessment (5.9) The Commissioner may, during each fiscal year, prepare an interim assessment against any participating entity. Assessment is binding (5.91) Every assessment and interim assessment is final and conclusive and binding on the participating entity against which it is made. 214 (1) Subsection 19(1) of the Act is amended by adding the following after paragraph (a.2): (a.3) designating, as a violation that may be proceeded with under sections 20 to 31, the contravention of a specified provision of the Consumer-Driven Banking Act or its regulations, or the non-compliance with terms and conditions, undertakings or directions referred to in subparagraph 3(4)(a)(ii); (2) Paragraph 19(1)(c.1) of the Act is replaced by the following: (c.1) prescribing the circumstances in which the Commissioner and Senior Deputy Commissioner must not make public, under subsection 31(1), the name of the person who committed the violation; and (3) Subsection 19(2) of the Act is replaced by the following: Maximum penalties (2) The maximum penalty for a violation is $1,000,000 in the case of a violation that is committed by a natural person, and $10,000,000 in the case of a violation that is committed by a financial institution, a payment card network operator or a participating entity. 215 Sections 20.1 and 21 of the Act are replaced by the following: Purpose of penalty 20. 1 The purpose of the penalty is not to punish but to promote compliance with the consumer provisions, compliance agreements that have been entered into under an Act listed in Schedule 1, any terms and conditions, undertakings or directions referred to in subparagraph 3(2)(a)(ii) or (4)(a)(ii), the provisions of the Payment Card Networks Act , the Consumer-Driven Banking Act or their regulations, and agreements entered into under section 7.1. How act or omission may be proceeded with 21 If a contravention or non-compliance that is designated under paragraph 19(1)(a), (a.1) or (a.3) can be proceeded with either as a violation or as an offence, proceeding in one manner precludes proceeding in the other. 216 Section 22 of the Act is replaced by the following: Commission of violation 22 (1) Every contravention or non-compliance that is designated under paragraphs 19(1)(a) to (a.3) constitutes a violation and the person that commits the violation is liable to a penalty determined in accordance with sections 19 and 20. Notice of violation — Commissioner (2) If the Commissioner believes on reasonable grounds that a person has committed a violation referred to in any of paragraphs 19(1)(a) to (a.2), they may issue and must cause to be served on the person a notice of violation. Notice of violation — Senior Deputy Commissioner (2.1) If the Senior Deputy Commissioner believes on reasonable grounds that a person has committed a violation referred to in paragraph 19(1)(a.3), they may issue and must cause to be served on the person a notice of violation. Contents of notice (3) A notice of violation must name the person believed to have committed a violation, identify the violation and set out (a) the penalty that the Commissioner or Senior Deputy Commissioner, as the case may be, proposes to impose; (b) the right of the person, within 30 days after the notice is served, or within any longer period that the Commissioner or Senior Deputy Commissioner, as the case may be, specifies, to pay the penalty or to make representations to the Commissioner or Senior Deputy Commissioner, as the case may be, with respect to the violation and the proposed penalty, and the manner for doing so; and (c) the fact that, if the person does not pay the penalty or make representations in accordance with the notice, the person will be deemed to have committed the violation and the Commissioner or Senior Deputy Commissioner, as the case may be, may impose a penalty in respect of it. 217 Subsections 23(2) to (4) of the Act are replaced by the following: Representations to Commissioner (2) If the person makes representations in accordance with the notice, the Commissioner or Senior Deputy Commissioner, as the case may be, must decide, on a balance of probabilities, whether the person committed the violation and, if so, may, subject to any regulations made under paragraph 19(1)(b), impose the penalty set out in the notice, a lesser penalty or no penalty. Failure to pay or make representations (3) A person who neither pays the penalty nor makes representations in accordance with the notice is deemed to have committed the violation and the Commissioner or Senior Deputy Commissioner, as the case may be, may, subject to any regulations made under paragraph 19(1)(b), impose the penalty proposed, a lesser penalty or no penalty. Notice of decision and right of appeal (4) The Commissioner or Senior Deputy Commissioner, as the case may be, must cause notice of any decision made under subsection (2) or (3) to be issued and served on the person together with notice of the right of appeal under section 24. 218 (1) Subsection 24(1) of the French version of the Act is replaced by the following: Droit d’appel 24 (1) Il peut être interjeté appel à la Cour fédérale de la décision signifiée en conformité avec le paragraphe 23(4), et ce dans les trente jours suivant la signification de cette décision ou dans le délai supplémentaire que la Cour peut accorder. (2) Subsection 24(2) of the Act is replaced by the following: Court to take precautions against disclosing (2) In an appeal, the Court must take every reasonable precaution, including, when appropriate, conducting hearings in private, to avoid the disclosure by the Court or any person of confidential information referred to in subsection 17(1), (3) or (5). (3) Subsection 24(3) of the English version of the Act is replaced by the following: Powers of Court (3) On an appeal, the Court may confirm, set aside or, subject to any regulations made under paragraph 19(1)(b), vary the decision. 219 Subsection 26(1) of the Act is replaced by the following: Certificate of default 26 (1) The unpaid amount of any debt referred to in subsection 25(1) may be certified by the Commissioner or Senior Deputy Commissioner, as the case may be. 220 Section 28 of the Act is amended by adding the following after subsection (3): Common law principles — Consumer-Driven Banking Act (4) Every rule and principle of the common law that renders any circumstance a justification or excuse in relation to a charge for an offence in relation to a provision of the Consumer-Driven Banking Act applies in respect of a violation to the extent that it is not inconsistent with this Act. 221 Sections 30 and 31 of the Act are replaced by the following: Time limit 30 (1) No proceedings in respect of a violation may be commenced later than two years after the subject-matter of the proceedings became known to the Commissioner or Senior Deputy Commissioner, as the case may be. Certificate (2) A document appearing to have been issued by the Commissioner or Senior Deputy Commissioner, as the case may be, certifying the day on which the subject-matter of any proceedings became known to them, is admissible in evidence without proof of the signature or official character of the person appearing to have signed the document and is, in the absence of evidence to the contrary, proof of the matter asserted in it. Publication 31 (1) Subject to any regulations, the Commissioner or Senior Deputy Commissioner, as the case may be, must make public the nature of a violation, the name of the person who committed it and the amount of the penalty imposed. Publication — reasons (2) In making public the nature of a violation, the Commissioner or Senior Deputy Commissioner, as the case may be, may include the reasons for their decision, including the relevant facts, analysis and considerations that formed part of the decision. 222 Section 33 of the Act is replaced by the following: No liability 33 No action lies against His Majesty, the Minister, the Commissioner, the Senior Deputy Commissioner, any Deputy Commissioner, any officer or employee of the Agency or any person acting under the direction of the Commissioner for anything done or omitted to be done in good faith in the administration or discharge of any powers or duties that under any Act of Parliament are intended or authorized to be executed or performed. 223 Section 33.1 of the Act is replaced by the following: Not compellable 33. 1 The Commissioner, the Senior Deputy Commissioner, any Deputy Commissioner, any officer or employee of the Agency or any person acting under the instructions of the Commissioner is not a compellable witness in any civil proceedings in respect of any matter coming to their knowledge as a result of exercising any of their powers or performing any of their duties or functions under this Act or an Act listed in Schedule 1. 224 Section 34 of the Act is amended by striking out “and” at the end of paragraphs (a) and (b), by adding “and” at the end of paragraph (c) and by adding the following after paragraph (c): (d) in aggregate form, its conclusions on the compliance, in that year, of participating entities, the external complaints body and the technical standards body with the provisions of the Consumer-Driven Banking Act . 225 Schedule 1 to the Act is amended by replacing the reference after the heading “SCHEDULE 1” with the following: (Subsections 3(2) and (4), 5(1) and 19(1) and sections 20, 20.1 and 33.1) 226 Schedule 1 to the Act is amended by adding the following in alphabetical order: Consumer-Driven Banking Act Loi sur les services bancaires axés sur les consommateurs Coming into Force Order in council 227 Sections 213 to 221 and 224 come into force on a day or days to be fixed by order of the Governor in Council. DIVISION 17 1991, c. 46 Bank Act 228 (1) Paragraph (b) of the definition deposit-type instrument in subsection 627.01(1) of the Bank Act is replaced by the following: (b) a variable rate of interest that is calculated on the basis of the institution’s prime lending rate or an interest rate benchmark. ( instrument de type dépôt ) (2) The portion of the definition principal-protected note in subsection 627.01(1) of the Act after paragraph (b) is replaced by the following: A principal-protected note does not include a financial instrument that specifies that the interest or return on the instrument is determined solely on the basis of a fixed rate of interest or return or a variable rate of interest or return that is calculated on the basis of the institution’s prime lending rate or an interest rate benchmark. ( billet à capital protégé ) (3) Subsection 627.01(1) of the Act is amended by adding the following in alphabetical order: interest rate benchmark  means a rate that is determined from time to time by reference to an assessment of one or more underlying interests, is made available to the public, either free of charge or on payment, and is used for reference for determining the interest payable, or other sums that are due, under loan agreements or other financial contracts or instruments. ( taux d’intérêt de référence ) 229 Subparagraphs 627.78(1)(b)(ii) and (iii) of the Act are replaced by the following: (ii) the prime lending rate or the interest rate benchmark, as the case may be, that is used for the calculation of the rate of interest, (iii) the prime lending rate or the interest rate benchmark in effect when the information is disclosed, and DIVISION 18 R.S., c. 18 (3rd Supp.), Part I Office of the Superintendent of Financial Institutions Act 230 Subsection 17(3) of the Office of the Superintendent of Financial Institutions Act is replaced by the following: Excess expenditures (3) The aggregate of expenditures made under subsection (1) shall not at any time exceed by more than $100,000,000, or such other amount as may be specified in an appropriation Act, the total of the assessments and revenues referred to in subsection (2). DIVISION 19 R.S., c. B- 2 Bank of Canada Act 231 The Bank of Canada Act is amended by adding the following after section 18: For greater certainty 18. 01 For greater certainty, for the purposes of paragraphs 18(c), (d) and (g), the Bank may enter into a repurchase, reverse repurchase or buy-sellback agreement. No invalidity 18. 02 No act of the Bank, including a transfer of property, is invalid by reason only that the Bank was without the capacity or power to so act. DIVISION 20 R.S., c. C-44; 1994, c. 24, s. 1(F) Canada Business Corporations Act 232 Subsection 21.1(6) of the Canada Business Corporations Act is replaced by the following: Offence (6) A corporation that, without reasonable cause, contravenes this section is guilty of an offence and liable on summary conviction to a fine not exceeding $100,000. 233 Subsection 21.31(5) of the Act is replaced by the following: Offence (5) A corporation that, without reasonable cause, contravenes subsection (1) is guilty of an offence and liable on summary conviction to a fine of not more than $100,000. 234 Subsection 21.4(5) of the Act is replaced by the following: Offence (5) A person who commits an offence under any of subsections (1) to (4) is liable (a) on summary conviction to a fine not exceeding $200,000 or to imprisonment for a term not exceeding two years, or to both; or (b) on conviction on indictment, to a fine not exceeding $1,000,000 or to imprisonment for a term not exceeding five years, or to both. DIVISION 21 R.S., c. L- 2 Canada Labour Code (Improving Access to Protections for Employees) Amendments to the Act 235 The Canada Labour Code is amended by adding the following after section 6: Presumption 6.1 (1) A person — other than a person who performs management functions or is employed in a confidential capacity in matters relating to industrial relations — who is paid remuneration by an employer is presumed to be their employee unless the contrary is proved by the employer. Exception (2) The presumption does not apply for the purposes of a prosecution under this Part. Burden of proof 6. 2 If, in any proceeding under this Part other than a prosecution, an employer alleges that a person is not their employee, the burden of proof is on the employer. 236 The Act is amended by adding the following after section 96: Prohibition 96. 1 An employer is prohibited from treating an employee as if they were not their employee. 237 Paragraph 97(1)(a) of the Act is replaced by the following: (a) an employer, a person acting on behalf of an employer, a trade union, a person acting on behalf of a trade union or an employee has contravened or failed to comply with subsection 24(4) or 34(6) or section 37, 47.3, 50, 69, 87.5 or 87.6, subsection 87.7(2) or section 94, 95 or 96.1; or 238 (1) The portion of subsection 99(1) of the Act before paragraph (a) is replaced by the following: Board orders 99 (1) If, under section 98, the Board determines that a party to a complaint has contravened or failed to comply with subsection 24(4) or 34(6), section 37, 47.3, 50 or 69, subsection 87.5(1) or (2), section 87.6, subsection 87.7(2) or section 94, 95, 96 or 96.1, the Board may, by order, require the party to comply with or cease contravening that subsection or section and may (2) Subsection 99(1) of the Act is amended by striking out “and” at the end of paragraph (e), by adding “and” at the end of paragraph (f) and by adding the following after paragraph (f): (g) in respect of a contravention of section 96.1, by order, require an employer to pay to any employee affected by that contravention compensation not exceeding the sum that, in the Board’s opinion, is equivalent to the remuneration that would, but for that contravention, have been paid by the employer to that employee. 239 The Act is amended by adding the following after section 123.1: Presumption 123.2 (1) A person who is paid remuneration by an employer is presumed to be their employee unless the contrary is proved by the employer. Exception (2) The presumption does not apply for the purposes of a prosecution under this Part. Burden of proof 123. 3 If, in any proceeding under this Part other than a prosecution, or in any proceeding under Part IV in respect of a violation that is related to this Part, an employer alleges that a person is not their employee, the burden of proof is on the employer. 240 The Act is amended by adding the following after section 125.3: Prohibition 125. 4 An employer is prohibited from treating an employee as if they were not their employee. 241 (1) Subsection 127.1(1) of the Act is replaced by the following: Complaint to supervisor 127.1 (1) An employee who believes on reasonable grounds that there has been a contravention of this Part or that there is likely to be an accident, injury or illness arising out of, linked with or occurring in the course of employment shall, before exercising any other recourse available under this Part, except the rights conferred by subsection (8.1) and sections 128, 129 and 132, make a complaint to the employee’s supervisor. (2) Section 127.1 of the Act is amended by adding the following after subsection (8): Complaint to Head (8.1) An employee may make a complaint in writing to the Head if they believe that the employer has contravened section 125.4. The complaint must be made not later than six months after the day on which the complainant knew, or in the opinion of the Head ought to have known, of the action or circumstances giving rise to the complaint. (3) The portion of subsection 127.1(9) of the Act before paragraph (a) is replaced by the following: Investigation (9) The Head shall investigate the complaint referred to in subsection (8) or (8.1) unless it relates to an occurrence of harassment and violence and the Head is of the opinion that 242 Sections 167.1 and 167.2 of the Act are replaced by the following: Presumption 167.01 (1) A person who is paid remuneration by an employer is presumed to be their employee unless the contrary is proved by the employer. Exception (2) The presumption does not apply for the purposes of a prosecution under this Part. Prohibition 167. 1 An employer is prohibited from treating an employee as if they were not their employee. Burden of proof 167. 2 If, in any proceeding under this Part other than a prosecution, or in any proceeding under Part IV in respect of a violation that is related to this Part, an employer alleges that a person is not their employee, the burden of proof is on the employer. Transitional Provisions Presumptions and burdens of proof 243 Sections 6.1, 6.2, 123.2, 123.3, 167.01 and 167.2 of the Canada Labour Code , as enacted by sections 235 , 239 and 242 , do not apply to any proceeding commenced before the day on which this Act receives royal assent. Section 167.1 of Canada Labour Code 244 Section 167.1 of the Canada Labour Code , as enacted by section 242 , only applies to a proceeding in respect of a contravention that is alleged to have occurred on or after the day on which this Act receives royal assent. DIVISION 22 R.S., c. L- 2 Canada Labour Code (Policy on Disconnecting and Other Measures) Amendments to the Act 245 Subsection 136(11) of the Canada Labour Code is amended by striking out “and” at the end of paragraph (b), by adding “and” at the end of paragraph (c) and by adding the following after paragraph (c): (d) a time limit for filling a vacant health and safety representative position. 246 Paragraph 145(1)(a) of the English version of the Act is replaced by the following: (a) terminate the contravention within the time that the Head may specify; and 247 Subsection 175(1) of the Act is amended by adding the following after paragraph (b.1): (b.2) defining the expressions “shift” and “work period” for the purposes of sections 173.01 and 173.1; 248 The Act is amended by adding the following after section 177.1: DIVISION I. 2 Policy on Disconnecting — Work-related Communication Policy 177.2 (1) On or before the first anniversary of the day on which an employer becomes subject to this section, the employer must bring into effect a policy that includes the following elements: (a) a general rule respecting work-related communication outside of scheduled hours of work, including the employer’s expectations and any opportunity for employees to disconnect from means of communication; (b) any exceptions to the rule and their underlying rationale; (c) the effective date of the policy; and (d) any other elements that may be prescribed by regulation. Exempted employees (2) The employer may exclude from the application of the policy any employees who are exempted from sections 169, 171 and 174 or who are referred to in subsection 167(2). Employees subject to collective agreement (3) If the parties to a collective agreement agree, in writing, that the agreement meets the requirements of subsection (1) with respect to some or all of the employees who are subject to the agreement, this Division does not apply with respect to those employees. Duty to update 177. 3 The employer must bring into effect an updated version of the policy on or before the third anniversary of the effective date of its previous version. Duty to consult 177.4 (1) In the development and updating of its policy, the employer must consult employees and provide them with at least 90 days to provide their comments. Exception — excluded employees (2) The employer is not required to consult any employees referred to in subsection 177.2(2) that it intends to exclude from the application of the policy. Employees represented by trade union (3) If an employee to whom this Division applies is represented by a trade union, the employer must conduct the consultation through the trade union. Record keeping 177. 5 In accordance with any requirements prescribed by regulation, the employer must keep a record of information related to the consultation of employees and to the development and updating of the policy. Duty to post policy 177.6 (1) On or before the effective date of the policy, the employer must post and keep posted a copy of it in readily accessible places where it is likely to be seen by the employees to whom it applies. Duty to provide policy (2) The employer must provide a copy of the policy in paper or electronic form to every employee to whom the policy applies within 30 days after the day on which it starts applying to them. Special needs (3) If an employee is affected by a condition that impairs their ability to receive the policy when it is provided by a method that would otherwise be sufficient under this Division, the employer must provide them with the policy by any method of communication that readily permits them to receive it, including braille, large print, audio recording, sign language and verbal communication. Prohibition 177. 61 It is prohibited for an employer or person acting on behalf of an employer to intimidate, dismiss, penalize, discipline or otherwise take reprisals against an employee, or threaten to take any such action against an employee, because the employee (a) asks the employer to comply with the policy; (b) makes inquiries about their rights under the policy; (c) files a complaint under the policy; or (d) exercises or attempts to exercise a right under the policy. Act and regulations prevail 177.7 (1) For greater certainty, this Act and the regulations prevail over the policy to the extent of any inconsistency between them. Collective agreement (2) For greater certainty, in the event of any inconsistency between the policy and a provision of a collective agreement that applies to employees to whom this Division applies, the collective agreement prevails to the extent of the inconsistency. Regulations 177. 8 The Governor in Council may make regulations (a) prescribing the form of the policy for the purposes of subsection 177.2(1) and section 177.3; (b) prescribing, for the purposes of paragraph 177.2(1)(d), any other elements to be included in the policy, including any elements to be included in respect of one or more employees or classes of employees; and (c) prescribing the manner in which the policy is to be posted for the purposes of subsection 177.6(1). 249 Section 230 of the Act is amended by adding the following after subsection (1): Clarification (1.01) The employer’s obligation to give and the employee’s right to receive notice or wages in lieu of notice under subsection (1) apply whether or not the employee has a right to avail themselves of any procedure for redress under this Part, including under subsection 240(1), with respect to the termination of their employment. 250 Section 235 of the Act is amended by adding the following after subsection (1): Clarification (1.1) The employer’s obligation to pay and the employee’s right to receive the amount under subsection (1) apply whether or not the employee has a right to avail themselves of any procedure for redress under this Part, including under subsection 240(1), with respect to the termination of their employment. 251 Section 240 of the Act is amended by adding the following after subsection (1): For greater certainty (1.01) For greater certainty, the fact that an employer complies with Divisions X and XI does not (a) affect the employee’s rights under this Division; or (b) prevent the Board from deciding under paragraph 242(3)(a) that the dismissal was unjust or from making any order under subsection 242(4), including a reinstatement order. 252 Section 242 of the Act is amended by adding the following after subsection (4): Payments under subsection 230(1) or 235(1) (5) For greater certainty, in making an order for compensation under subsection (4) the Board may, among other things, take into account any amount paid by the employer to the employee under subsection 230(1) or 235(1). 253 Section 246.1 of the Act is amended by adding the following after subsection (1): For greater certainty (1.1) For greater certainty, the fact that an employer complies with Divisions X and XI does not (a) affect the employee’s rights under this Division; or (b) prevent the Board from deciding under section 246.4 that the employer has taken a reprisal against them or from making any order under that section, including a reinstatement order. 254 Section 247.99 of the Act is amended by adding the following after subsection (1): For greater certainty (1.1) For greater certainty, the fact that an employer complies with Divisions X and XI does not (a) affect the employee’s rights under this Division; or (b) prevent the Board from deciding under paragraph (7)(a) that the employer has taken action against the employee in contravention of subsection 247.98(4) or from making any order under subsection (8), including a reinstatement order. 255 Subsection 264(1) of the Act is amended by adding the following after paragraph (f): (g) specifying activities that are or are not considered work for the purposes of this Part or any of its Divisions or provisions; (g.1) defining expressions such as “disconnect”, “scheduled hours of work” and “work-related communication” for the purposes of this Part or any of its Divisions or provisions; Transitional Provisions Definitions 256 (1) The following definitions apply in this section. commencement day  means the day on which this section comes into force. ( date de référence ) former Act  means the Canada Labour Code as it read immediately before commencement day. ( ancienne loi ) new Act  means the Canada Labour Code as it reads on commencement day. ( nouvelle loi ) Ongoing complaint (2) In any complaint made under subsection 251.01(1) of the former Act that relates to an amount referred to in subsection 230(1) or 235(1) of that Act and that is ongoing on the commencement day, the Head or the Board , as those expressions are defined in section 2 of that Act, or the court, as the case may be, must consider subsections 230(1.01) and 235(1.1) of the new Act as if they were in force at the time of the termination of employment. For greater certainty (3) For greater certainty, for the purposes of subsection (2), a complaint is ongoing until all procedures for review and appeal available at law have been exhausted. Past termination (4) In any complaint made under subsection 251.01(1) of the new Act that relates to an amount referred to in subsection 230(1) or 235(1) of that Act with respect to a termination of employment that occurred before the commencement day, the Head , as that expression is defined in section 2 of that Act, must consider subsections 230(1.01) and 235(1.1) of the new Act as if they were in force at the time of the termination. Coordinating Amendments 2018, c. 27 257 On the first day on which both section 249 of this Act and section 480 of the Budget Implementation Act, 2018, No. 2 are in force, (a) section 212.1 of the Canada Labour Code is amended by adding the following after subsection (1): Clarification (1.1) The employer’s obligation to give and the employee’s right to receive notice or wages in lieu of notice under subsection (1) apply whether or not the employee has a right to avail themselves of any procedure for redress under this Part, including under subsection 240(1), with respect to the termination of their employment. (b) subsection 242(5) of the Canada Labour Code is replaced by the following: Payments under subsection 212.1(1), 230(1) or 235(1) (5) For greater certainty, in making an order for compensation under subsection (4) the Board may, among other things, take into account any amount paid by the employer to the employee under subsection 212.1(1), 230(1) or 235(1). Coming into Force Order in council 258 Sections 245 to 248 and 255 come into force on a day or days to be fixed by order of the Governor in Council. DIVISION 23 1996, c. 23 Employment Insurance Act 259 Subparagraph 12(2.3)(a)(i) of the Employment Insurance Act is replaced by the following: (i) the date on which a benefit period for the claimant is established falls within the period beginning on September 26, 2021 and ending on October 24, 2026, DIVISION 24 2023, c. 15 An Act for the Substantive Equality of Canada’s Official Languages 260 Section 61 of An Act for the Substantive Equality of Canada’s Official Languages is amended by replacing the subsection 19(1) that it enacts with the following: Part IX of Official Languages Act 19 (1) Subject to this section, sections 18 and 21 and subsections 26(2), 41(2) and (4) and 41.1(2) and (4), Part IX of the Official Languages Act applies with respect to a complaint made under subsection 18(1), (1.1) or (1.2) as if the federally regulated private business that is the subject of the complaint were a federal institution. DIVISION 25 Indigenous Loan Guarantee Program Loan guarantees 261 (1) A corporation that is to be incorporated as a wholly owned subsidiary of the Canada Development Investment Corporation for the purpose of providing loan guarantees as part of an Indigenous loan guarantee program is authorized to provide such guarantees. The aggregate of the principal and interest in respect of all the guarantees must not exceed $5,000,000,000, or any greater amount that may be authorized by the Governor in Council on the recommendation of the Minister of Finance. Consolidated Revenue Fund (2) The Minister of Finance must pay out of the Consolidated Revenue Fund any amounts to the subsidiary that are necessary for the payment of the principal and interest in respect of the guarantees referred to in subsection (1) and all other amounts required by the subsidiary to discharge its obligations under those guarantees or to exercise any rights or protect the interests of His Majesty in right of Canada. Agent of His Majesty 262 The subsidiary referred to in section 261 is for all its purposes an agent of His Majesty in right of Canada. Non-application of provisions 263 (1) Section 91 and subsection 100(1) of the Financial Administration Act do not apply to or in respect of the subsidiary referred to in section 261 or any of its wholly owned subsidiaries. Application of provisions (2) Subsections 89(1), (4) and (6) and section 89.1 of the Financial Administration Act apply to or in respect of the subsidiary as if it were a parent Crown corporation. DIVISION 26 Red Dress Alert Payments out of C.R.F. 264 On the requisition of the Minister of Crown-Indigenous Relations, there may be paid out of the Consolidated Revenue Fund, for the period beginning on September 1, 2024 and ending on March 31, 2027, a sum not exceeding in the aggregate $1.3 million for the purpose of carrying out engagement on a pilot project for the creation of a Red Dress Alert, a public alert system for missing Indigenous women and girls, two-spirit Indigenous persons and gender-diverse Indigenous persons, and making direct payments to the participating entities or individuals. DIVISION 27 Subsidiary of VIA Rail Canada Inc. Definition of subsidiary 265 In this Division, subsidiary means the subsidiary of VIA Rail Canada Inc. incorporated under the Canada Business Corporations Act on November 29, 2022 with the corporate name VIA HFR - VIA TGF Inc. Agent of His Majesty 266 The subsidiary is an agent of His Majesty in right of Canada. Contracts, agreements or other arrangements 267 The subsidiary may enter into contracts, agreements or other arrangements with His Majesty as though it were not an agent of His Majesty. Coming into force 268 Sections 265 to 267 are deemed to have come into force on November 29, 2022. DIVISION 28 2019, c. 28, s. 1 Impact Assessment Act Amendments to the Act 269 The long title of the Impact Assessment Act is replaced by the following: An Act respecting a federal process for impact assessments and the prevention or mitigation of significant adverse effects within federal jurisdiction 270 The preamble to the Act is replaced by the following: Preamble Whereas Parliament is committed to having an impact assessment process that prevents or mitigates significant adverse effects within federal jurisdiction; 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 ensuring respect for the rights of the Indigenous peoples of Canada recognized and affirmed by section 35 of the Constitution Act, 1982 ; Whereas Parliament recognizes the importance of implementing the impact assessment process in a manner that supports coordinated action among jurisdictions that have powers, duties and functions in relation to the assessment of the effects of designated projects, fosters reconciliation and working in partnership with the Indigenous peoples of Canada, integrates scientific information and Indigenous knowledge, fosters meaningful public participation, is transparent, efficient and timely and contributes to a positive investment climate in Canada, encourages the use of innovative approaches and technologies to prevent or mitigate adverse effects within federal jurisdiction, and contributes to fostering sustainability and to the Government of Canada’s ability to meet its environmental obligations and its commitments in respect of climate change; Whereas Parliament is committed, in order to prevent or mitigate significant adverse environmental effects , as defined in section 81, to having a process for the assessment of projects , as defined in that section, that are to be carried out on federal lands, or those that are outside Canada and that are to be carried out or financially supported by a federal authority; And whereas Parliament recognizes the importance of regional assessments in understanding the effects of existing or future physical activities and the importance of strategic assessments in assessing federal policies, plans or programs that are relevant to conducting impact assessments; 271 (1) The definitions direct or incidental effects and effects within federal jurisdiction in section 2 of the Act are repealed. (2) The definition mitigation measures in section 2 of the Act is replaced by the following: mitigation measures  means measures to eliminate, reduce, control or offset adverse effects within federal jurisdiction, direct or incidental adverse effects or adverse environmental effects , as defined in section 81, and includes restitution for any damage caused by those effects through replacement, restoration, compensation or any other means. ( mesures d’atténuation ) (3) Section 2 of the Act is amended by adding the following in alphabetical order: adverse effects within federal jurisdiction  means, with respect to a physical activity or a designated project, (a) a non-negligible adverse change to the following components of the environment that are within the legislative authority of Parliament: (i) fish and fish habitat , as defined in subsection 2(1) of the Fisheries Act , (ii) aquatic species , as defined in subsection 2(1) of the Species at Risk Act , (iii) migratory birds , as defined in subsection 2(1) of the Migratory Birds Convention Act, 1994 , and (iv) any other component of the environment that is set out in Schedule 3; (b) a non-negligible adverse change to the environment that would occur on federal lands; (c) a non-negligible adverse change to the marine environment that is caused by pollution and that would occur outside Canada; (d) a non-negligible adverse change — that is caused by pollution — to boundary waters or international waters , as those terms are defined in subsection 2(1) of the Canada Water Act , or to interprovincial waters; (e) with respect to the Indigenous peoples of Canada, a non-negligible adverse impact — occurring in Canada and resulting from any change to the environment — on (i) physical and cultural heritage, (ii) the current use of lands and resources for traditional purposes, or (iii) any structure, site or thing that is of historical, archaeological, paleontological or architectural significance; (f) a non-negligible adverse change occurring in Canada to the health, social or economic conditions of the Indigenous peoples of Canada; and (g) a non-negligible adverse change to a health, social or economic matter that is within the legislative authority of Parliament that is set out in Schedule 3. In the case of a physical activity or a designated project that is carried out on federal lands or is a federal work or undertaking , as defined in subsection 3(1) of the Canadian Environmental Protection Act, 1999 , this definition also includes the non-negligible adverse effects of that activity or project. ( effets négatifs relevant d’un domaine de compétence fédérale ) direct or incidental adverse effects  means non-negligible adverse effects that are directly linked or necessarily incidental to a federal authority’s exercise of a power or performance of a duty or function that would permit the carrying out, in whole or in part, of a physical activity or designated project, or to a federal authority’s provision of financial assistance to a person for the purpose of enabling that activity or project to be carried out, in whole or in part. ( effets directs ou accessoires négatifs ) 272 Section 6 of the Act is replaced by the following: Purpose 6 (1) The purpose of this Act is to prevent or mitigate significant adverse effects within federal jurisdiction — and significant direct or incidental adverse effects — that may be caused by the carrying out of designated projects, as well as significant adverse environmental effects , as defined in section 81, that may be caused by the carrying out of projects , as defined in that section, by establishing processes to anticipate, identify and assess the potential effects of those projects in order to inform decision making under this or any other Act of Parliament in respect of those effects. Mandate (2) The Government of Canada, the Minister, the Agency and federal authorities, in the administration of this Act, must exercise their powers in a manner that fosters sustainability, respects the rights of the Indigenous peoples of Canada recognized and affirmed by section 35 of the Constitution Act, 1982 , takes into account Indigenous knowledge, considers the cumulative effects of physical activities, applies the precautionary principle and promotes cooperation among jurisdictions and with the Indigenous peoples of Canada. Application of principles to powers (3) The Government of Canada, the Minister, the Agency and federal authorities must, in the administration of this Act, exercise their powers in a manner that (a) ensures that processes referred to in subsection (1) are fair, predictable and efficient; and (b) adheres to the principles of scientific integrity, honesty, objectivity, thoroughness and accuracy. 273 (1) Subsection 7(1) of the Act is replaced by the following: Proponent 7 (1) Subject to subsection (3), the proponent of a designated project must not do any act or thing in connection with the carrying out of the designated project, in whole or in part, if that act or thing may cause any adverse effects within federal jurisdiction. (2) The portion of subsection 7(3) of the Act before paragraph (a) is replaced by the following: Conditions (3) The proponent of a designated project may do an act or thing in connection with the carrying out of the designated project, in whole or in part, that may cause adverse effects within federal jurisdiction if (3) Subsection 7(4) of the Act is repealed. 274 Section 8 of the Act is amended by striking out “or” at the end of paragraph (a) and by replacing paragraph (b) with the following: (b) the decision statement with respect to the designated project that is issued to the proponent of the designated project under section 65 sets out that (i) the adverse effects within federal jurisdiction — and the direct or incidental adverse effects — that are indicated in the report with respect to the impact assessment of that project are not likely to be, to some extent, significant, or (ii) the Minister has determined under paragraph 60(1)(b), or the Governor in Council has determined under paragraph 62(b), that the adverse effects within federal jurisdiction — and the direct or incidental adverse effects — that are the subject of the determination are justified in the public interest; or (c) the exercise of the power, the performance of the duty or function or the provision of financial assistance is for the purpose of authorizing the proponent to do an act or thing referred to in paragraph 7(3)(c). 275 Subsections 9(1) and (2) of the Act are replaced by the following: Minister’s power to designate 9 (1) The Minister may, on request or on the Minister’s own initiative, by order, designate a physical activity that is not prescribed by regulations made under paragraph 109(b) if, in the Minister’s opinion, the carrying out of that physical activity may cause adverse effects within federal jurisdiction or direct or incidental adverse effects. Factors (2) If the Minister is of the opinion that the carrying out of the physical activity may cause adverse effects within federal jurisdiction or direct or incidental adverse effects, the Minister may, in deciding whether to make an order, consider (a) public concerns related to the adverse effects within federal jurisdiction — or the direct or incidental adverse effects — that may be caused by the carrying out of the physical activity; (b) the adverse impacts that the physical activity may have on the rights of the Indigenous peoples of Canada — including Indigenous women — recognized and affirmed by section 35 of the Constitution Act, 1982 ; (c) any relevant assessment referred to in section 92, 93 or 95; (d) whether a means other than an impact assessment exists that would permit a jurisdiction to address the adverse effects within federal jurisdiction — and the direct or incidental adverse effects — that may be caused by the carrying out of the physical activity; and (e) any other factor that the Minister considers relevant. 276 Subsections 15(1) and (2) of the Act are replaced by the following: Proponent’s obligation — notice 15 (1) The proponent must provide the Agency with a notice that sets out how it intends to address the issues referred to in section 14, including any issues that relate to the adverse impact that the designated project may have on the rights of the Indigenous peoples of Canada recognized and affirmed by section 35 of the Constitution Act, 1982 . Detailed project description (1.1) The Agency may require the proponent to include in the notice a detailed description of the designated project that includes the information prescribed by regulations made under paragraph 112(1)(a) if it is of the opinion that a decision cannot be made under subsection 16(1) without that description and information. Additional information (2) The Agency may require the proponent to provide an amended notice that includes the information or details that the Agency specifies if it is of the opinion that a decision cannot be made under subsection 16(1) because (a) the initial description or the prescribed information provided under subsection 10(1) is incomplete or does not contain sufficient details; or (b) if a detailed description and prescribed information are required, under subsection (1.1), to be included in the notice referred to in subsection (1), the detailed description or prescribed information included in that notice is incomplete or does not contain sufficient details. 277 (1) Paragraph 16(2)(b) of the Act is replaced by the following: (b) the adverse effects within federal jurisdiction — or the direct or incidental adverse effects — that may be caused by the carrying out of the designated project; (2) Subsection 16(2) of the Act is amended by striking out “and” at the end of paragraph (f) and by adding the following after that paragraph: (f.1) whether a means other than an impact assessment exists that would permit a jurisdiction to address the adverse effects within federal jurisdiction — and the direct or incidental adverse effects — that may be caused by the carrying out of the designated project; and (3) Section 16 of the Act is amended by adding the following after subsection (2): Limitation (2.1) The Agency may decide that an impact assessment is required only if it is satisfied that the carrying out of the designated project may cause adverse effects within federal jurisdiction or direct or incidental adverse effects. 278 Paragraph 23(c) of the Act is replaced by the following: (c) a jurisdiction that, in relation to a designated project in respect of which the Minister has approved a substitution under section 31, conducts an assessment of the effects of the designated project or undertakes activities under an agreement or arrangement referred to in paragraph 114(1)(f) in relation to the assessment of those effects. 279 (1) Subsection 28(3) of the Act is replaced by the following: Effects set out in report (3) The report must set out the effects that, in the Agency’s opinion, are likely to be caused by the carrying out of the designated project. It must also indicate, from among the effects set out in the report, those that are adverse effects within federal jurisdiction and those that are direct or incidental adverse effects, and specify, from among those adverse effects within federal jurisdiction and direct or incidental adverse effects, the ones that are likely to be, to some extent, significant and the extent to which they are significant. (2) Paragraph 28(5)(a) of the Act is replaced by the following: (a) a longer time limit than the time limit referred to in subsection (2) to take into account circumstances that are specific to the designated project or to allow the Agency to cooperate with a jurisdiction referred to in section 21 with respect to the impact assessment of that project; or (3) Subsections 28(6) and (7) of the Act are replaced by the following: Extension of time limit by Minister (6) The Minister may extend the time limit referred to in subsection (2) or any time limit established under subsection (5) by any period — up to a maximum of 90 days — that is necessary to take into account circumstances that are specific to the designated project or to allow the Agency to cooperate with a jurisdiction referred to in section 21. Extension of time limit by Governor in Council (7) The Governor in Council may, on the recommendation of the Minister, extend the time limit extended under subsection (6) by any period that is necessary to take into account circumstances that are specific to the designated project or to allow the Agency to cooperate with a jurisdiction referred to in section 21. 280 Subsection 31(1) of the Act is replaced by the following: Minister’s power 31 (1) Subject to sections 32 and 33, the Minister may, on request of a jurisdiction referred to in any of paragraphs (c) to (g) of the definition jurisdiction in section 2 that has powers, duties or functions in relation to an assessment of the effects of a designated project and before the expiry of the time limit referred to in subsection 18(1), or any extension of that time limit, do one of the following: (a) if the Minister is of the opinion that a process for assessing the effects of designated projects that is followed by the jurisdiction would be an appropriate substitute, approve the substitution of that process for the impact assessment; (b) if the Minister is of the opinion that a process for assessing the effects of designated projects that is followed by the jurisdiction would, together with the activities undertaken under an agreement or arrangement referred to in paragraph 114(1)(f) in relation to the assessment of the effects of the designated project, be an appropriate substitute, approve the substitution of that process and those activities for the impact assessment. 281 (1) Paragraph 33(1)(a) of the Act is replaced by the following: (a) the factors set out in subsection 22(1) will be considered under the process to be substituted or under an agreement or arrangement referred to in paragraph 114(1)(f); (2) Paragraph 33(1)(d) of the Act is replaced by the following: (d) the process to be substituted will include consultations with any Indigenous group that may be affected by the carrying out of the designated project or the consultations will be undertaken under an agreement or arrangement referred to in paragraph 114(1)(f); (3) Subsection 33(1) of the Act is amended by adding the following after paragraph (g): (g.1) in the case of a substitution approved under paragraph 31(1)(b), the report will be based on the process and the activities referred to in that paragraph; (4) Subsections 33(2) and (2.1) of the Act are replaced by the following: Effects set out in report (2) The Minister must be satisfied that the report that will be submitted to the Minister will set out the effects that are likely to be caused by the carrying out of the designated project. The Minister must also be satisfied that the report will (a) indicate, from among the effects set out in it, those that are adverse effects within federal jurisdiction and those that are direct or incidental adverse effects; and (b) specify, from among those adverse effects within federal jurisdiction and direct or incidental adverse effects, the ones that are likely to be, to some extent, significant and the extent to which they are significant. Report — Indigenous knowledge (2.1) The Minister must be satisfied that the report that will be submitted to the Minister will set out how any Indigenous knowledge provided with respect to the designated project was taken into account and used in determining the effects that are likely to be caused by the carrying out of that project. 282 Sections 34 and 35 of the Act are replaced by the following: Assessment considered in conformity 34 The assessment of the effects of a designated project in respect of which the Minister has approved a substitution is considered to be an impact assessment under this Act and to satisfy any requirements of this Act and the regulations in respect of an impact assessment. Information 35 If, with respect to the assessment of the effects of a designated project in respect of which the Minister has approved a substitution, the Agency is of the opinion that information is required for the purpose of ensuring that the factors set out in subsection 22(1) will be considered or for the purposes of subsection 60(1) or (1.1), it may require the proponent of that project to provide the information to the Minister or may make a request to the jurisdiction that is following or followed the process — or to any jurisdiction that is undertaking or undertook activities under an agreement or arrangement referred to in paragraph 114(1)(f) in relation to the assessment of effects of that project — to provide that information to the Minister. 283 (1) Subsections 37(2) to (4) of the Act are replaced by the following: Limit of 600 days (2) Subject to subsection (3), the total number of days for the time limits established under subsection (1) must not exceed 600 unless the Agency is of the opinion that more time is required to take into account circumstances that are specific to the designated project or to allow the review panel to cooperate with a jurisdiction referred to in section 21 with respect to the impact assessment of that project. Extension of time limit by Minister (3) The Minister may extend the time limit established under paragraph (1)(a) by any period — up to a maximum of 90 days — that is necessary to take into account circumstances that are specific to the designated project or to allow the review panel to cooperate with a jurisdiction referred to in section 21. Extension of time limit by Governor in Council (4) The Governor in Council may, on the recommendation of the Minister, extend the time limit extended under subsection (3) by any period that is necessary to take into account circumstances that are specific to the designated project or to allow the review panel to cooperate with a jurisdiction referred to in section 21. (2) Paragraph 37(5)(c) of the Act is replaced by the following: (c) a notice of any extension granted under subsection (4), including the Governor in Council’s reasons for granting that extension. 284 Subsection 40(6) of the Act is replaced by the following: Report taken into account (6) Before making any determination under section 62 in relation to the proposal, the Governor in Council must take into account any report referred to in subsection (5) and any information that the Minister provides to the Governor in Council following the consultations referred to in that subsection. 285 The Act is amended by adding the following after section 43: Agreement — referral under paragraph 43(a) 43.1 (1) The Minister may, when referring an impact assessment of a designated project to a review panel under paragraph 43(a), enter into an agreement or arrangement with respect to the impact assessment with the President of the Canadian Nuclear Safety Commission and any jurisdiction referred to in paragraphs (a) to (g) of the definition jurisdiction in section 2. Agreement — referral under paragraph 43(b) (2) The Minister may, when referring an impact assessment of a designated project to a review panel under paragraph 43(b), enter into an agreement or arrangement with respect to the impact assessment with the Lead Commissioner of the Canadian Energy Regulator and any jurisdiction referred to in paragraphs (a) to (g) of the definition jurisdiction in section 2. 286 Subparagraph 51(1)(d)(ii) of the Act is replaced by the following: (ii) indicates which of the effects referred to in subparagraph (i) are adverse effects within federal jurisdiction and which are direct or incidental adverse effects and specifies, from among those adverse effects within federal jurisdiction and direct or incidental adverse effects, the ones that are likely to be, to some extent, significant and the extent to which they are significant, 287 Section 56 of the Act is replaced by the following: Studies and collection of information 56 The Minister may, before making a referral under section 61, require the proponent of the designated project to collect any information or undertake any studies that are necessary for the Governor in Council to make any determination under section 62. 288 Subsection 59(2) of the Act is replaced by the following: Effects set out in report (2) The report must set out the effects that, in the Agency’s opinion, are likely to be caused by the carrying out of the designated project. It must also indicate, from among the effects set out in the report, those that are adverse effects within federal jurisdiction and those that are direct or incidental adverse effects and specify, from among those adverse effects within federal jurisdiction and direct or incidental adverse effects, the ones that are likely to be, to some extent, significant and the extent to which they are significant. 289 (1) Subsection 60(1) of the Act is replaced by the following: Minister’s decision 60 (1) After taking into account the report with respect to the impact assessment of a designated project that is submitted to the Minister under subsection 28(2) or at the end of the assessment of the effects of a designated project in respect of which the Minister has approved a substitution under section 31, the Minister must (a) determine, after taking into account the implementation of any mitigation measures that the Minister considers appropriate, whether the adverse effects within federal jurisdiction — and the direct or incidental adverse effects — that are indicated in the report are likely to be, to some extent, significant and, if so, the extent to which those effects are significant; and (b) if the Minister determines that any of the effects referred to in paragraph (a) are likely to be, to some extent, significant, determine whether the effects so determined are, in light of the extent to which the Minister determined them to be significant and the factors referred to in section 63, justified in the public interest. Referral to Governor in Council (1.1) After taking into account the report referred to in subsection (1) or at the end of the assessment of the effects of a designated project in respect of which the Minister has approved a substitution under section 31, the Minister may, instead of making the determinations under that subsection, refer to the Governor in Council the matter of making those determinations. (2) Subsection 60(2) of the French version of the Act is replaced by the following: Avis affiché sur le site Internet (2) Si le ministre renvoie les questions au gouverneur en conseil, il veille à ce qu’un avis à cet effet soit affiché sur le site Internet, motifs à l’appui. 290 Subsection 61(1) of the Act is replaced by the following: Referral to Governor in Council 61 (1) After taking into account the report with respect to the impact assessment of a designated project that the Minister receives under section 55 or that is submitted to the Minister under section 59, the Minister, in consultation with the responsible Minister, if any, must refer to the Governor in Council (a) the matter of determining, after taking into account the implementation of any mitigation measures that the Governor in Council considers appropriate, whether the adverse effects within federal jurisdiction — and the direct or incidental adverse effects — that are indicated in the report are likely to be, to some extent, significant and, if so, the extent to which those effects are significant; and (b) the matter of determining whether the effects, if any, that are likely to be, to some extent, significant are, in light of the extent to which they are significant and the factors referred to in section 63, justified in the public interest. 291 Sections 62 and 63 of the Act are replaced by the following: Governor in Council’s determination 62 If a matter is referred to the Governor in Council under subsection 60(1.1) or 61(1), the Governor in Council must, after taking into account the report with respect to the impact assessment of the designated project, (a) determine, after taking into account the implementation of any mitigation measures that the Governor in Council considers appropriate, whether the adverse effects within federal jurisdiction — and the direct or incidental adverse effects — that are indicated in the report are likely to be, to some extent, significant and, if so, the extent to which those effects are significant; and (b) if the Governor in Council determines that any of the effects referred to in paragraph (a) are likely to be, to some extent, significant, determine whether the effects so determined are, in light of the extent to which the Governor in Council determined them to be significant and the factors referred to in section 63, justified in the public interest. Factors — justification in public interest 63 The Minister’s determination under paragraph 60(1)(b), and the Governor in Council’s determination under paragraph 62(b), must be based on the report with respect to the impact assessment of the designated project and a consideration of the following factors: (a) the impact that the effects that are likely to be caused by the carrying out of that project may have on any Indigenous group and any adverse impact that those effects may have on the rights of the Indigenous peoples of Canada recognized and affirmed by section 35 of the Constitution Act, 1982 ; (b) the extent to which the effects that are likely to be caused by the carrying out of that project contribute to the Government of Canada’s ability to meet its environmental obligations and its commitments in respect of climate change; and (c) the extent to which the effects that are likely to be caused by the carrying out of that project contribute to sustainability. 292 (1) Subsections 64(1) and (2) of the Act are replaced by the following: Conditions — adverse effects within federal jurisdiction 64 (1) The Minister must, based on any determination made by the Minister under subsection 60(1) or any determination made by the Governor in Council under section 62, as the case may be, establish any conditions that the Minister considers appropriate in relation to the adverse effects within federal jurisdiction that are indicated in the report. The proponent of the designated project must comply with those conditions. Conditions — direct or incidental adverse effects (2) The Minister must, based on any determination made by the Minister under subsection 60(1) or any determination made by the Governor in Council under section 62, as the case may be, establish in relation to the direct or incidental adverse effects that are indicated in the report any conditions that the Minister considers appropriate and that are directly linked or necessarily incidental to the exercise of a power or performance of a duty or function by a federal authority that would permit the designated project to be carried out, in whole or in part, or to the provision of financial assistance by a federal authority to a person for the purpose of enabling the carrying out, in whole or in part, of that project. The proponent of the designated project must comply with those conditions. (2) Paragraph 64(4)(a) of the Act is replaced by the following: (a) the implementation of the mitigation measures that the Minister takes into account in making any determination under subsection 60(1), or that the Governor in Council takes into account in making any determination under section 62, other than those the implementation of which the Minister is satisfied will be ensured by another person or by a jurisdiction; and 293 (1) Paragraph 65(1)(a) of the Act is replaced by the following: (a) informs the proponent of any determination made under subsection 60(1) or section 62 in relation to that project and the reasons for the determination; (2) Subsection 65(3) of the Act is replaced by the following: Time limit — Minister’s determination (3) The Minister must issue the decision statement no later than 30 days after the day on which the report with respect to the impact assessment of the designated project, or a summary of that report, is posted on the Internet site if the Minister (a) makes a determination under paragraph 60(1)(a) that the adverse effects within federal jurisdiction — and the direct or incidental adverse effects — that are indicated in the report are not likely to be, to some extent, significant; or (b) makes a determination under paragraph 60(1)(b). (3) The portion of subsection 65(4) of the Act before paragraph (a) is replaced by the following: Time limit — Governor in Council’s decision (4) If the Governor in Council makes a determination under paragraph 62(a) that the adverse effects within federal jurisdiction — and the direct or incidental adverse effects — that are indicated in the report are not likely to be, to some extent, significant or makes a determination under paragraph 62(b), the Minister must issue the decision statement no later than 90 days after (4) Subsections 65(5) and (6) of the Act are replaced by the following: Extension of time limit by Minister (5) The Minister may extend the time limit referred to in subsection (3) or (4) by any period — up to a maximum of 90 days — that is necessary to take into account circumstances that are specific to the designated project or to facilitate cooperation with a jurisdiction referred to in section 21. Extension of time limit by Governor in Council (6) The Governor in Council may, on the recommendation of the Minister, extend the time limit extended under subsection (5) by any period that is necessary to take into account circumstances that are specific to the designated project or to facilitate cooperation with a jurisdiction referred to in section 21. 294 Paragraph 105(2)(c) of the Act is replaced by the following: (c) the report with respect to the impact assessment that is taken into account by the Minister under subsection 60(1) or (1.1), or a summary of the report and an indication of how a copy of the report may be obtained; 295 Paragraph 106(2)(c) of the Act is replaced by the following: (c) the day on which the Minister issues a decision statement that informs the proponent of the designated project of the Minister’s, or the Governor in Council’s, determination that the effects referred to in paragraph 60(1)(a) or 62(a), as the case may be, that are likely to be, to some extent, significant are not justified in the public interest; and 296 Paragraph 109(b) of the Act is replaced by the following: (b) for the purpose of the definition designated project in section 2, designating a physical activity — or class of physical activities — the carrying out of which may, in the Governor in Council’s opinion, cause adverse effects within federal jurisdiction or direct or incidental adverse effects and specifying which physical activity or class of physical activities may be designated by the Minister under paragraph 112(1)(a.2); 297 Paragraph 112(1)(a) of the Act is replaced by the following: (a) prescribing the information that must be contained in the description referred to in subsection 10(1) or 15(1.1) and the documents referred to in paragraph 18(1)(b); 298 Subsections 181(3) to (4.3) of the Act are replaced by the following: Continuance or termination of environmental assessment (3) If the proponent fails to provide the information or studies within the time limit referred to in subsection (2) or within any extension of that time limit or notifies the Agency that it will fail to do so, the Agency may decide that the environmental assessment of the designated project is to be continued as an impact assessment under this Act or is to be terminated. Posting of notice on Internet site (4) The Agency must post on the Internet site a notice of any decision made under subsection (3). No review panel (4.1) Despite subsection 36(1), the Minister is not permitted to refer to a review panel an environmental assessment that, in accordance with subsection (3), is continued as an impact assessment under this Act. 299 Section 183 of the Act is amended by adding the following after subsection (2): Power of Agency (2.1) If, within one year after the day on which this subsection comes into force, the proponent of a designated project referred to in subsection (1) fails to collect the information or undertake the studies required by the Agency under section 39 of the 2012 Act, the Agency may, despite subsection (1), decide that the environmental assessment of that project is to be continued as an impact assessment under this Act as if the impact assessment had been referred by the Minister to a review panel under subsection 36(1) of this Act. Posting of notice on Internet site (2.2) The Agency must post on the Internet site a notice of any decision made under subsection (2.1). 300 Section 184 of the Act is repealed. 301 Schedule 3 to the Act is amended by replacing the references after the heading “SCHEDULE 3” with the following: (Section 2 and subsection 7(2)) Transitional Provisions Definitions 302 (1) The following definitions apply in this section and sections 303 to 318 . amended Act  means the Impact Assessment Act , as it reads on or after the commencement day. ( loi modifiée ) commencement day  means the day on which this section comes into force. ( date de référence ) 2012 Act  means the Canadian Environmental Assessment Act, 2012 , section 52 of chapter 19 of the Statutes of Canada, 2012. ( Loi de 2012 ) Terminology (2) Words and expressions used in sections 303 to 318 have the same meaning as in section 2 of the amended Act. Designation of physical activity 303 (1) Despite subsection 9(4) of the amended Act, if, in respect of a request referred to in subsection 9(1) of the amended Act that the Minister received before the commencement day, the Minister has not responded to the request before that day, the Minister must respond, with reasons, within 90 days after that day. The Minister must ensure that the response is posted on the Internet site. Deeming (2) Everything that was done before the commencement day with regard to the physical activity in respect of which the request was made is, if it may or must be done under the amended Act with regard to that physical activity, deemed, as of the day on which the response is posted, to have been done under the amended Act. Deeming — no impact assessment 304 If the Agency, before the commencement day, made a decision that an impact assessment of a designated project is not required and posted that decision on the Internet site, that decision is deemed, as of that day, to be a decision made under subsection 16(1) of the amended Act. Designated projects 305 (1) This section applies in respect of a designated project if the Minister or the Agency, during the six-month period that starts on the commencement day, takes a step with regard to that project under any of sections 10 to 59 of the amended Act. Posting (2) The Agency must post a notice on the Internet site that indicates the first step taken, the provision under which it was taken, the date on which it was taken and the designated project in respect of which it was taken. Deeming (3) Everything that was done before the commencement day with regard to a designated project in respect of which a notice is posted under subsection (2) is, if it may or must be done under the amended Act in respect of the designated project, deemed, as of the day on which the first step is taken, to have been done under the amended Act. Agency’s power (4) The Agency may, when the first step is taken with regard to a designated project, replace, in respect of that project, any time limit or period established by or under the amended Act by another time limit or period. Posting (5) The Agency must post a notice on the Internet site that indicates, for each time limit or period that it replaces, the new time limit or period and the designated project with regard to which that new time limit or period applies. Clarification (6) For greater certainty, nothing in subsection (4) affects any power conferred on the Agency under the amended Act to extend or shorten any time limit or period. Definition of first step (7) In this section, first step means the first step taken by the Minister or the Agency under any of sections 10 to 59 of the amended Act in respect of a designated project during the six-month period that starts on the commencement day. Decision statements issued before commencement day 306 (1) If the Minister is of the opinion that the conditions included in a decision statement issued by the Minister, including a decision statement issued by the Minister under subsection 54(1) of the 2012 Act, before the commencement day could be included in a decision statement issued under subsection 65(1) of the amended Act, the Minister may post a notice to that effect on the Internet site. Decision statements issued on or after commencement day (2) If the Minister is of the opinion that the conditions included in a decision statement issued by the Minister under subsection 54(1) of the 2012 Act on or after the commencement day could be included in a decision statement issued under subsection 65(1) of the amended Act, the Minister may post a notice to that effect on the Internet site. Deeming (3) A decision statement in respect of which a notice is posted under subsection (1) or (2) is deemed, as of the day on which the notice is posted, to be a decision statement issued under subsection 65(1) of the amended Act. Amendment to decision statement — Impact Assessment Act 307 (1) Subsection 68(2), paragraph 69(1)(b) and subsection 69(2) of the amended Act do not apply in respect of an amendment made under subsection 68(1) of the amended Act to a decision statement that was issued with respect to a designated project before the commencement day if the amendment (a) is made during the six-month period that starts on that day; (b) removes a condition that, in the Minister’s opinion, could not be included in a decision statement issued under subsection 65(1) of the amended Act or amends a condition so that, in the Minister’s opinion, the condition is one that could be included in such a decision statement; and (c) does not add a condition or modify the designated project’s description. Posting of amended decision statement (2) If the Minister amends a decision statement in accordance with subsection (1), the Minister must ensure that the amended decision statement is posted on the Internet site. Deeming (3) The amended decision statement is deemed, as of the day on which it is posted on the Internet site, to be a decision statement issued under subsection 65(1) of the amended Act. Amendment to decision statement — 2012 Act 308 (1) The Minister may, during the six-month period that starts on the commencement day, amend a decision statement issued by the Minister under subsection 54(1) of the 2012 Act before that day to (a) remove a condition that, in the Minister’s opinion, could not be included in a decision statement issued under subsection 65(1) of the amended Act; or (b) amend a condition so that, in the Minister’s opinion, the condition is one that could be included in a decision statement issued under subsection 65(1) of the amended Act. Posting of amended decision statement (2) If the Minister amends a decision statement in accordance with subsection (1), the Minister must ensure that the amended decision statement is posted on the Internet site. Deeming (3) The amended decision statement is deemed, as of the day on which it is posted on the Internet site, to be a decision statement issued under subsection 65(1) of the amended Act. Regional assessments — committee report not provided 309 (1) If a committee established by the Minister before the commencement day to conduct an assessment described in section 92 or 93 of the amended Act, or a committee the members of which are appointed or whose appointment is approved by the Minister for that purpose before that day, has not, before that day, provided a report to the Minister in respect of the assessment, (a) the committee is deemed to be established, as the case may be, in accordance with section 92 of the amended Act or in accordance with an agreement or arrangement entered into under subparagraph 93(1)(a)(i) or paragraph 93(1)(b) of the amended Act, on that day; and (b) everything that was done in respect of the assessment before that day by or in respect of the committee is, if it may or must be done under the amended Act, deemed, as of that day, to have been done under the amended Act. Regional assessments — committee report provided (2) If a committee established by the Minister to conduct an assessment described in section 92 or 93 of the amended Act, or a committee the members of which are appointed or whose appointment is approved by the Minister for that purpose, has, before the commencement day, provided a report to the Minister in respect of the assessment, the report is deemed to be a report provided under subsection 102(1) of the amended Act. Regional assessments — Agency report not provided 310 (1) If the Agency, having been authorized by the Minister before the commencement day to conduct an assessment described in section 92 or 93 of the amended Act, has not, before that day, provided a report to the Minister in respect of the assessment, (a) the Agency is deemed, as of that day, to be authorized under section 92 or 93 of the amended Act, as the case may be, to conduct an assessment; and (b) everything that was done in respect of the assessment before that day by or in respect of the Agency is, if it may or must be done under the amended Act, deemed, as of that day, to have been done under the amended Act. Regional assessments — Agency report provided (2) If the Agency, having been authorized by the Minister to conduct an assessment described in section 92 or 93 of the amended Act, has, before the commencement day, provided a report to the Minister in respect of the assessment, the report is deemed to be a report provided under subsection 102(1) of the amended Act. Strategic assessments — committee report not provided 311 (1) If a committee established by the Minister before the commencement day to conduct an assessment described in section 95 of the amended Act has not, before that day, provided a report to the Minister in respect of the assessment, (a) the committee is deemed, on that day, to be established in accordance with section 95 of the amended Act; and (b) everything that was done in respect of that assessment before that day by or in respect of the committee is, if it may or must be done under the amended Act, deemed, as of that day, to have been done under the amended Act. Strategic assessments — committee report provided (2) If a committee established by the Minister to conduct an assessment described in section 95 of the amended Act has, before the commencement day, provided a report to the Minister in respect of the assessment, the report is deemed to be a report provided under subsection 102(1) of the amended Act. Strategic assessments — Agency report not provided 312 (1) If the Agency, having been authorized by the Minister before the commencement day to conduct an assessment described in section 95 of the amended Act, has not, before that day, provided a report to the Minister in respect of the assessment, (a) the Agency is deemed, as of that day, to be authorized under section 95 of the amended Act to conduct that assessment; and (b) everything that was done in respect of that assessment before that day by or in respect of the Agency is, if it may or must be done under the amended Act, deemed, as of that day, to have been done under the amended Act. Strategic assessments — Agency report provided (2) If the Agency, having been authorized by the Minister to conduct an assessment described in section 95 of the amended Act, has, before the commencement day, provided a report to the Minister in respect of the assessment, the report is deemed to be a report provided under subsection 102(1) of the amended Act. Time limit — response to request for assessment 313 Despite section 8 of the Information and Management of Time Limits Regulations , for the purpose of subsection 97(1) of the amended Act, if, in respect of a request that an assessment described in section 92, 93 or 95 of the amended Act be conducted, the Minister has not responded before the commencement day, the Minister must respond within 90 days after that day. Agreements or arrangements 314 (1) Any agreement or arrangement described in paragraph 114(1)(c) or (f) of the amended Act that was entered into by the Minister before the commencement day is deemed, as of that day, to be an agreement or arrangement entered into under paragraph 114(1)(c) or (f) of the amended Act, as the case may be. International agreements or arrangements (2) Any agreement or arrangement described in subsection 114(2) of the amended Act that was entered into by the Minister and the Minister of Foreign Affairs before the commencement day is deemed, as of that day, to be an agreement or arrangement entered into under subsection 114(2) of the amended Act. Non-application (3) Subsection 114(3) of the amended Act does not apply in respect of the agreements or arrangements referred to in subsections (1) and (2). Cost Recovery Regulations 315 The Cost Recovery Regulations , as they read on August 27, 2019, registered as SOR/2012-146, are deemed to be made by the Governor in Council, under section 109 of the amended Act, on the commencement day. Physical Activities Regulations 316 The Physical Activities Regulations , as published in the Canada Gazette , Part II, on August 21, 2019 but with the amendments set out in section 93 of the Cross-border Movement of Hazardous Waste and Hazardous Recyclable Material Regulations , as published in the Canada Gazette , Part II, on March 17, 2021, and section 1 of the Regulations Amending and Repealing Certain Department of the Environment Regulations (Miscellaneous Program) , as published in the Canada Gazette , Part II, on April 12, 2023, are deemed (a) to be made by the Governor in Council, under sections 109 and 188 of the amended Act, on the commencement day; (b) to be registered as SOR/2019-285; (c) to designate physical activities, or classes of physical activities, the carrying out of which may, in the Governor in Council’s opinion, cause adverse effects within federal jurisdiction or direct or incidental adverse effects; and (d) despite section 5 of the Physical Activities Regulations , as so published, to come into force on the commencement day. Information and Management of Time Limits Regulations 317 The Information and Management of Time Limits Regulations , as published in the Canada Gazette , Part II, on August 21, 2019, are deemed (a) to be made by the Minister, under section 112 of the amended Act, on the commencement day; (b) to be registered as SOR/2019-283; and (c) despite section 10 of the Information and Management of Time Limits Regulations , as so published, to come into force on the commencement day. Regulations Respecting Excluded Physical Activities (Newfoundland and Labrador Offshore Exploratory Wells) 318 (1) The Regulations Respecting Excluded Physical Activities (Newfoundland and Labrador Offshore Exploratory Wells) , as posted on the Internet site on June 4, 2020, are deemed (a) to be made by the Minister, under paragraph 112(1)(a.2) of the amended Act, on the commencement day; and (b) despite section 4 of the Regulations Respecting Excluded Physical Activities (Newfoundland and Labrador Offshore Exploratory Wells) , as so posted, to come into force on the commencement day. (2) The Minister is deemed, for the purpose of subsection 112(2) of the amended Act, to have considered an assessment described in section 92 or 93 of the amended Act that is in relation to the physical activities or classes of physical activities designated in the Regulations Respecting Excluded Physical Activities (Newfoundland and Labrador Offshore Exploratory Wells) . Regulations 319 The Governor in Council may make any regulations that the Governor in Council considers necessary to provide for any other transitional matter arising from the coming into force of this Division. DIVISION 29 R.S., c. J- 1 Judges Act 320 (1) Paragraph 24(3)(b) of the Judges Act is replaced by the following: (b) 79, in the case of judges appointed to superior courts in the provinces other than appeal courts. (2) The portion of subsection 24(4) of the Act before paragraph (a) is replaced by the following: Unified family courts (4) For the purposes of assisting the establishment of unified family courts in the provinces, a further number of salaries not greater than 58 at any one time may be paid in the case of judges appointed to courts described in paragraph (3)(b) DIVISION 30 R.S., c. T- 2 Tax Court of Canada Act 321 Subsection 17.1(1) of the Tax Court of Canada Act is replaced by the following: Right to appear — individual 17.1 (1) An individual who is a party to a proceeding in respect of which this section applies may appear in person or be represented by counsel, but if the individual wishes to be represented by counsel, only a person who is referred to in subsection (2) shall represent the individual. Right to appear — other (1.1) If a party to a proceeding in respect of which this section applies is not an individual, that party shall be represented by a person who is referred to in subsection (2) unless the Court under special circumstances grants leave to the party to be represented by a director, officer, employee, member or partner of the party. DIVISION 31 R.S., c. F- 27 Food and Drugs Act Amendments to the Act 322 (1) Paragraph (c) of the definition drogue in section 2 of the French version of the Food and Drugs Act is replaced by the following: c) à la désinfection des locaux où des aliments sont fabriqués, préparés ou gardés. ( drug ) (2) Section 2 of the Act is amended by adding the following in alphabetical order: foreign regulatory authority  means a government agency or other entity outside Canada that controls the manufacture, use or sale of therapeutic products or foods within its jurisdiction; ( autorité réglementaire étrangère ) 323 Subsection 23(1) 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) an activity could be conducted as a result of an exemption that is under consideration by the Minister. 324 Section 29.2 of the Act and the heading before it are repealed. 325 (1) Subsection 30(1) of the Act is amended by adding the following after paragraph (j): (j.1) respecting orders referred to in sections 30.01, 30.02, 30.05 and 30.06; (2) Paragraph 30(1)(r) of the Act is repealed. (3) Subsection 30(1.4) of the Act is replaced by the following: Regulations — preventing or alleviating shortages (1.4) Without limiting the power conferred by any other subsection of this section, the Governor in Council may make any regulations that the Governor in Council considers necessary for the purpose of preventing shortages of therapeutic products or foods for a special dietary purpose in Canada or alleviating those shortages or their effects, in order to protect human health. 326 The Act is amended by adding the following after section 30: Supplementary Rules Supplementary rules — therapeutic product 30.01 (1) Subject to any regulations made under paragraph 30(1)(j.1) and if the Minister believes on reasonable grounds that the use of a therapeutic product, other than the intended use, may present a risk of injury to health, the Minister may, by order, establish rules in respect of the importation, sale, conditions of sale, advertising, manufacture, preparation, preservation, packaging, labelling, storage or testing of the therapeutic product for the purpose of preventing, managing or controlling the risk of injury to health. Promotion (2) For greater certainty, the Minister may, in the order, establish rules for the purpose of preventing the therapeutic product from being promoted for a use, other than the intended use, of a therapeutic product or preventing a use, other than the intended use, of a therapeutic product from being appealing. Uncertainty (3) The Minister may make the order despite any uncertainty respecting the risk of injury to health that the use of the therapeutic product, other than the intended use, may present. Supplementary rules — drug intended for animal 30.02 (1) Subject to any regulations made under paragraph 30(1)(j.1) and if the Minister believes on reasonable grounds that the use of a drug intended for an animal of a particular species, including a use other than the intended use, may present a risk of adverse effects to human beings, animals of a different species or the environment, the Minister may, by order, establish rules in respect of the importation, sale, conditions of sale, advertising, manufacture, preparation, preservation, packaging, labelling, storage or testing of the drug for the purpose of preventing, managing or controlling the risk of adverse effects. Uncertainty (2) The Minister may make the order despite any uncertainty respecting the risk of adverse effects that the use of the drug, including a use other than the intended use, may present. Statutory Instruments Act 30. 03 An order made under subsection 30.01(1) or 30.02(1) that applies to only one person is not a statutory instrument within the meaning of the Statutory Instruments Act . Availability — person-specific orders 30. 04 The Minister must ensure that any order made under subsection 30.01(1) or 30.02(1) that applies to only one person is publicly available but may exclude personal information and confidential business information from the order. Exemption Exemption — foods and therapeutic products 30.05 (1) Subject to subsection (2) and any regulations made under paragraph 30(1)(j.1), the Minister may, by order, on any conditions that the Minister considers necessary, exempt — other than in relation to cosmetics — a class of foods, therapeutic products, persons or activities from the application of all or any of the provisions of Part I, section 37 or the regulations. Preconditions (2) The Minister may make an order only if the Minister believes on reasonable grounds that (a) it is necessary for a health or safety purpose or is otherwise in the public interest; and (b) having regard to its benefits and conditions, it is unlikely to result in (i) unacceptable health, safety or, if applicable, environmental risks, or (ii) an unacceptable degree of uncertainty respecting health, safety or, if applicable, environmental risks. Obligation to comply with conditions (3) Any person to whom a condition applies must comply with that condition. 327 (1) Section 30.05 of the Act is amended by adding the following after subsection (1): Exemption — person (1.1) Subject to subsection (2) and any regulations made under paragraph 30(1)(j.1), the Minister may, by order, on any conditions that the Minister considers necessary, exempt a person — or any food, therapeutic product or activity, or any class of foods, therapeutic products or activities, in relation to a person — from the application of all or any of the provisions of Part I, section 37 or the regulations. The order cannot relate to cosmetics. (2) The portion of subsection 30.05(2) of the Act before paragraph (a) is replaced by the following: Preconditions (2) The Minister may make an order under subsection (1) or (1.1) only if the Minister believes on reasonable grounds that (3) Section 30.05 of the Act is amended by adding the following after subsection (3): Statutory Instruments Act (4) An order made under subsection (1.1) that applies to only one person is not a statutory instrument within the meaning of the Statutory Instruments Act . Availability — person-specific orders (5) The Minister must ensure that any order made under subsection (1.1) is publicly available but may exclude personal information and confidential business information from the order. 328 The Act is amended by adding the following after section 30.05: Decision of Foreign Regulatory Authority Deeming order 30.06 (1) Subject to subsection (2) and any regulations made under paragraph 30(1)(j.1), the Minister may, by order, deem that specified requirements of this Act or the regulations are met — in respect of a therapeutic product or food that belongs to a class specified in the order — on the basis of a decision of, or any information or document produced by, a foreign regulatory authority in respect of that therapeutic product or food. Preconditions (2) The Minister may make the order only if the Minister believes on reasonable grounds that (a) it is necessary for a health or safety purpose or is otherwise in the public interest; and (b) having regard to its benefits and conditions, it is unlikely to result in (i) unacceptable health, safety or, if applicable, environmental risks, or (ii) an unacceptable degree of uncertainty respecting health, safety or, if applicable, environmental risks. Power to impose conditions (3) The Minister may, in the order, impose any conditions that the Minister considers necessary. Obligation to comply with conditions (4) Any person to whom a condition applies must comply with that condition. Clarifications (5) For greater certainty, (a) the requirements referred to in subsection (1) include requirements imposed on the Minister; (b) the Minister may rely on a portion of a decision of, or a portion of any document or information produced by, a foreign regulatory authority; and (c) nothing in this section is intended to limit the Minister’s ability to consider information, documents or other material obtained, directly or indirectly, from a foreign regulatory authority. Reference to Regulations Deeming 30. 07 For the purposes of any provision of this Act, other than sections 30.01, 30.02, 30.05 and 30.06, any reference to regulations made under this Act is deemed to include orders made under section 30.01, 30.02, 30.05 or 30.06. 329 Subsection 30.1(5) of the Act is replaced by the following: Deeming (5) For the purpose of any provision of this Act other than this section and section 30.05, any reference to regulations made under this Act is deemed to include interim orders, and any reference to a regulation made under a specified provision of this Act is deemed to include a reference to the portion of an interim order containing any provision that may be contained in a regulation made under the specified provision. 330 The heading before section 30.2 and sections 30.2 to 30.4 of the Act are repealed. 331 (1) Section 30.5 of the Act is replaced by the following: Incorporation by reference 30.5 (1) The following instruments may incorporate by reference any document, regardless of its source, either as it exists on a particular date or as it is amended from time to time: (a) a regulation made under this Act with respect to a food or therapeutic product; (b) a marketing authorization; and (c) an order made under subsection 30.63(1). Accessibility of incorporated documents (2) The Minister shall ensure that any document that is incorporated by reference is accessible. Defence (3) A person is not liable to be found guilty of an offence for any contravention in respect of which a document that is incorporated by reference is relevant unless, at the time of the alleged contravention, the document was accessible as required by subsection (2) or it was otherwise accessible to the person. No registration or publication (4) For greater certainty, a document that is incorporated by reference is not required to be transmitted for registration or published in the Canada Gazette by reason only that it is incorporated by reference. (2) Subsection 30.5(1) of the Act is replaced by the following: Incorporation by reference 30.5 (1) A regulation made under this Act with respect to a food or therapeutic product and an order made under subsection 30.63(1) may incorporate by reference any document, regardless of its source, either as it exists on a particular date or as it is amended from time to time. Transitional Provision Marketing authorizations 332 Marketing authorizations issued under section 30.2 or 30.3 of the Food and Drugs Act , as those sections read immediately before the day on which section 330 comes into force, that have not been repealed before that day are deemed to be made under subsection 30.05(1) of that Act. Coming into Force Order in council 333 Subsection 325 (2), sections 327 and 330 and subsection 331 (2) come into force on a day or days to be fixed by order of the Governor in Council. DIVISION 32 1997, c. 13; 2018, c. 9, s. 2 Tobacco and Vaping Products Act Amendment to the Act 334 The Tobacco and Vaping Products Act is amended by adding the following after section 42.5: Customs information 42. 6 The Minister of Public Safety and Emergency Preparedness must, on request of the Minister, provide customs information , as defined in subsection 107(1) of the Customs Act , to the Minister for the purpose of the administration and enforcement of this Act. Disclosure of information 42. 7 The Minister may disclose any information that is obtained under this Act to any federal minister if the disclosure is for a purpose related to verifying compliance with any Act of Parliament, other than this Act, that applies directly or indirectly to a tobacco product or vaping product or any activity in relation to a tobacco product or vaping product. Coordinating Amendment Bill C-59 335 If Bill C-59, introduced in the 1st session of the 44th Parliament and entitled Fall Economic Statement Implementation Act, 2023 , receives royal assent, then section 42.5 of the Tobacco and Vaping Products Act is replaced by the following: Incorporation by reference — limitation removed 42. 5 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 the powers to make regulations under sections 7, 7.8, 14, 17, 33, 42, 42.1 and 42.4. DIVISION 33 R.S., c. C- 46 Criminal Code (Criminal Interest Rate) Amendments to the Act 336 (1) The portion of subsection 347(1) of the Criminal Code before paragraph (a) is replaced by the following: Criminal interest rate 347 (1) Despite any other Act of Parliament, every person who enters or offers to enter into an agreement or arrangement to receive interest at a criminal rate, who advertises an offer to enter into an agreement or arrangement that provides for the receipt of interest at a criminal rate or who receives a payment or partial payment of interest at a criminal rate is (2) The definitions credit advanced and interest in subsection 347(2) of the Act are replaced by the following: credit advanced  means the aggregate of the money and the monetary value of any goods, services or benefits actually advanced or to be advanced under an agreement or arrangement, or that would be advanced if an agreement or arrangement — as offered, including in an advertisement — was entered into, minus the aggregate of any required deposit balance and any fee, fine, penalty, commission and other similar charge or expense directly or indirectly incurred under the original or any collateral agreement or arrangement; ( capital prêté ) interest  means the aggregate of all charges and expenses, whether in the form of a fee, fine, penalty, commission or other similar charge or expense or in any other form, paid or payable for the advancing of credit under an agreement or arrangement, or that would be paid or payable if such an agreement or arrangement was entered into, by or on behalf of the person to whom the credit is or is to be advanced, or would be advanced, irrespective of the person to whom any such charges and expenses are or are to be paid or payable, or would be paid or payable, but does not include any repayment of credit advanced or any insurance charge, official fee, overdraft charge, required deposit balance or, in the case of a mortgage or hypothec transaction, any amount required to be paid on account of property taxes; ( intérêt ) (3) Subsection 347(7) of the Act is repealed. 337 The portion of subsection 347.1(2) of the Act before paragraph (b) is replaced by the following: Non-application — person (2) Section 347 and section 2 of the Interest Act do not apply to a person, other than a financial institution within the meaning of paragraphs (a) to (d) of the definition financial institution in section 2 of the Bank Act , who has entered into or has offered to enter into a payday loan agreement to receive interest, has advertised an offer to enter into a payday loan agreement that provides for the receipt of interest or has received interest under a payday loan agreement, if (a) the amount of money that is or would be advanced under the agreement is $1,500 or less and the term of the agreement is or would be 62 days or less; Coordinating Amendments 2023, c. 26 338 (1) In this section, other Act means the Budget Implementation Act, 2023, No. 1 . (2) If section 611 of the other Act comes into force before subsection 336 (1) of this Act, then, on the day on which that subsection 336 (1) comes into force, section 347.01 of the Criminal Code is replaced by the following: Non-application — agreements or arrangements 347.01 (1) Section 347 does not apply in respect of agreements or arrangements provided for by regulation or in respect of offers, or advertisements of offers, provided for by regulation, to enter into an agreement or arrangement. Non-application — offers and advertisements (1.1) Section 347 also does not apply in respect of offers, or advertisements of offers, to enter into an agreement or arrangement if, had the agreement or arrangement been entered into, it would have been considered to be provided for by regulation. Regulations (2) The Governor in Council may, by regulation, on the recommendation of the Minister of Justice after consultation with the Minister of Finance, provide for (a) the types of agreements or arrangements in respect of which section 347 does not apply or the criteria for determining the agreements or arrangements, or the types of agreements or arrangements, in respect of which that section does not apply; or (b) the types of offers, or of advertisements of offers, to enter into an agreement or arrangement in respect of which section 347 does not apply or the criteria for determining the offers, or advertisements, or the types of offers, or of advertisements, in respect of which that section does not apply. (3) If subsection 336 (1) of this Act comes into force before section 611 of the other Act, then that section 611 is amended by replacing the section 347.01 that it enacts with the following: Non-application — agreements or arrangements 347.01 (1) Section 347 does not apply in respect of agreements or arrangements provided for by regulation or in respect of offers, or advertisements of offers, provided for by regulation, to enter into an agreement or arrangement. Non-application — offers and advertisements (2) Section 347 also does not apply in respect of offers, or advertisements of offers, to enter into an agreement or arrangement if, had the agreement or arrangement been entered into, it would have been considered to be provided for by regulation. Regulations (3) The Governor in Council may, by regulation, on the recommendation of the Minister of Justice after consultation with the Minister of Finance, provide for (a) the types of agreements or arrangements in respect of which section 347 does not apply or the criteria for determining the agreements or arrangements, or the types of agreements or arrangements, in respect of which that section does not apply; or (b) the types of offers, or of advertisements of offers, to enter into an agreement or arrangement in respect of which section 347 does not apply or the criteria for determining the offers, or advertisements, or the types of offers, or of advertisements, in respect of which that section does not apply. (4) If section 611 of the other Act comes into force on the same day as subsection 336 (1) of this Act, then that subsection 336 (1) is deemed to have come into force before that section 611 and subsection (3) applies as a consequence. (5) If subsection 612(1) of the other Act comes into force before section 337 of this Act, then that section 337 is amended by adding, after the paragraph 347.1(2)(a) that it enacts, the following: (a.1) the total cost of borrowing under the agreement does not or would not exceed the limit fixed by regulation; (6) If section 337 of this Act comes into force before subsection 612(1) of the other Act, then that subsection 612(1) is amended by replacing the paragraph 347.1(2)(a.1) that it enacts with the following: (a.1) the total cost of borrowing under the agreement does not or would not exceed the limit fixed by regulation; (7) If subsection 612(1) of the other Act comes into force on the same day as section 337 of this Act, then that subsection 612(1) is deemed to have come into force before that section 337 and subsection (5) applies as a consequence. Coming into Force Order in council 339 (1) Subsections 336 (1) and (2) and section 337 come into force on a day to be fixed by order of the Governor in Council. 30th day after royal assent (2) Subsection 336 (3) comes into force on the 30th day after the day on which this Act receives royal assent. DIVISION 34 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 340 (1) Paragraph 5(h) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act is amended by adding the following after subparagraph (ii): (ii.1) transporting currency or money orders, traveller’s cheques or other similar negotiable instruments, (2) Subparagraph 5(h)(iii) of the Act is replaced by the following: (iii) issuing or redeeming money orders, traveller’s cheques or other similar negotiable instruments, (3) Paragraph 5(h.1) of the Act is amended by adding the following after subparagraph (ii): (ii.1) transporting currency or money orders, traveller’s cheques or other similar negotiable instruments, (4) Subparagraph 5(h.1)(iii) of the Act is replaced by the following: (iii) issuing or redeeming money orders, traveller’s cheques or other similar negotiable instruments, 341 The Act is amended by adding the following after section 11: Disclosure without consent 11.01 (1) A person or entity referred to in section 5 may disclose an individual’s personal information to another person or entity referred to in that section without the individual’s knowledge or consent if (a) the information was collected in the course of the person or entity’s activities; (b) the disclosure is reasonable for the purpose of detecting or deterring money laundering, terrorist activity financing or sanctions evasion; (c) making the disclosure with the individual’s knowledge or consent would risk compromising the ability to detect or deter money laundering, terrorist activity financing or sanctions evasion; and (d) the disclosure is made in accordance with the regulations. Collection and use (2) A person or entity referred to in section 5 may collect or use an individual’s personal information without their knowledge or consent if the information was disclosed to the person or entity under subsection (1) and the collection or use is carried out in accordance with the regulations. Immunity (3) No criminal or civil proceedings lie against a person or an entity that, in good faith, discloses information under subsection (1) or collects or uses information under subsection (2). 342 (1) Subsection 55(3) of the Act is amended by adding the following after paragraph (d): (d.1) the Department of Citizenship and Immigration, if the Centre also determines that the information is relevant to determining whether a person is a person described in subsection 10(1), 19(2) or 22(1) of the Citizenship Act ; (2) Subsection 55(3) of the Act is amended by adding the following after paragraph (g): (g.1) an agency or body that administers the civil asset forfeiture legislation of a province, if the Centre also has reasonable grounds to suspect that the information would be relevant to proceedings under that legislation; 343 Subsection 55.1(1) of the Act is amended by adding the following after paragraph (c): (c.1) the Department of Citizenship and Immigration, if the Centre also determines that the information is relevant to determining whether a person is a person described in subsection 10(1), 19(2) or 22(1) of the Citizenship Act ; 344 Subsection 73(1) of the Act is amended by adding the following after paragraph (i): (i.1) respecting the disclosure of information under subsection 11.01(1) or the collection or use of information under subsection 11.01(2), including the establishment and implementation of codes of practice by persons and entities referred to in section 5 and respecting the roles of the Privacy Commissioner and the Centre in relation to those codes; 345 Section 73.22 of the Act is renumbered as subsection 73.22(1) and is amended by adding the following: Publication — reasons (2) In making public the nature of a violation, the Centre may include the reasons for its decision, including the relevant facts, analysis and considerations that formed part of the decision. 346 The Act is amended by adding the following after section 77: Verifications and reviews — sections 9.92 and 9.93 77. 01 Every person or entity that knowingly contravenes section 9.92 or 9.93 is guilty of an offence and liable (a) on summary conviction, to a fine of not more than $250,000 or to imprisonment for a term of not more than two years less a day, or to both; or (b) on conviction on indictment, to a fine of not more than $500,000 or to imprisonment for a term of not more than five years, or to both. Consequential Amendments 2000, c. 5 Personal Information Protection and Electronic Documents Act 347 (1) Subsection 7(1) of the Personal Information Protection and Electronic Documents Act is amended by adding the following after paragraph (b): (b.01) it was disclosed under paragraph (3)(d.21); (2) Paragraph 7(2)(d) of the Act is replaced by the following: (d) it was collected under paragraph (1)(a), (b), (b.01) or (e). (3) Subsection 7(3) of the Act is amended by adding the following after paragraph (d.2): (d.21) made to another organization under subsection 11.01(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act ; SOR/2002- 412 Cross-border Currency and Monetary Instruments Reporting Regulations 348 The portion of the definition monetary instruments in subsection 1(1) of the Cross-border Currency and Monetary Instruments Reporting Regulations after paragraph (b) is replaced by the following: For greater certainty, this definition does not apply to securities or negotiable instruments that bear restrictive endorsements or a stamp for the purposes of clearing. ( effets ) Coordinating Amendments 2021, c. 23 349 (1) The following definitions apply in this section. other Act  means the Budget Implementation Act, 2021, No. 1 . ( autre loi ) Regulations  means the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations . ( règlement ) (2) If section 159 of the other Act comes into force before subsections 340 (1) and (3) of this Act, then (a) that subsection 340 (1) is replaced by the following: 340 (1) Subparagraph 5(h)(ii.1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act is replaced by the following: (ii.1) transporting currency or money orders, traveller’s cheques or other similar negotiable instruments, (b) that subsection 340 (3) is replaced by the following: (3) Subparagraph 5(h.1)(ii.1) of the Act is replaced by the following: (ii.1) transporting currency or money orders, traveller’s cheques or other similar negotiable instruments, (c) on the day on which those subsections 340 (1) and (3) come into force, (i) the portion of paragraph 36(f.1) of the Regulations before subparagraph (i) is replaced by the following: (f.1) subject to paragraphs (f.2) and (f.3), if, at the request of a person or entity, they transport $1,000 or more in cash or virtual currency within the meaning of paragraph (b) of the definition of that term in subsection 1(2) or $3,000 or more in money orders, traveller’s cheques or other similar negotiable instruments, a record of (ii) the portion of paragraph 36(f.2) of the Regulations before subparagraph (i) is replaced by the following: (f.2) subject to paragraph (f.3), if, at the request of a person or entity, they transport cash, virtual currency within the meaning of paragraph (b) of the definition of that term in subsection 1(2) or money orders, traveller’s cheques or other similar negotiable instruments in an amount that has not been declared and that they cannot readily determine, a record of (iii) the portion of paragraph 36(f.3) of the Regulations before subparagraph (i) is replaced by the following: (f.3) if, at the request of an entity referred to in paragraph 5(a) or (b) of the Act, they transport cash, virtual currency within the meaning of paragraph (b) of the definition of that term in subsection 1(2) or money orders, traveller’s cheques or other similar negotiable instruments, a record of (iv) paragraph 95(1)(c.1) of the Regulations is replaced by the following: (c.1) requests that they transport an amount of $1,000 or more in cash or virtual currency within the meaning of paragraph (b) of the definition of that term in subsection 1(2) or an amount of $3,000 or more in money orders, traveller’s cheques or other similar negotiable instruments; (v) paragraph 95(3)(a) of the Regulations is replaced by the following: (a) that requests that they transport an amount of $1,000 or more in cash or virtual currency within the meaning of paragraph (b) of the definition of that term in subsection 1(2) or an amount of $3,000 or more in money orders, traveller’s cheques or other similar negotiable instruments; (vi) paragraph 95(4)(a) of the Regulations is replaced by the following: (a) that requests that they transport an amount of $1,000 or more in cash or virtual currency within the meaning of paragraph (b) of the definition of that term in subsection 1(2) or an amount of $3,000 or more in money orders, traveller’s cheques or other similar negotiable instruments; (vii) paragraph 120(1)(b.1) of the Regulations is replaced by the following: (b.1) a person who requests that the money services business transport an amount of $100,000 or more in cash, virtual currency within the meaning of paragraph (b) of the definition of that term in subsection 1(2) or money orders, traveller’s cheques or other similar negotiable instruments; (viii) paragraph 120(2)(b.1) of the Regulations is replaced by the following: (b.1) a person who requests that the foreign money services business transport an amount of $100,000 or more in cash, virtual currency within the meaning of paragraph (b) of the definition of that term in subsection 1(2) or money orders, traveller’s cheques or other similar negotiable instruments; (3) If section 159 of the other Act comes into force on the same day as subsections 340 (1) and (3) of this Act, then that section 159 is deemed to have come into force before those subsections 340 (1) and (3) and subsection (2) applies as a consequence. Bill C-27 350 (1) Subsections (2) to (4) apply if Bill C-27, introduced in the 1st session of the 44th Parliament and entitled the Digital Charter Implementation Act, 2022 (in this section referred to as the “other Act”), receives royal assent. (2) If section 3 of the other Act comes into force before section 347 of this Act, then (a) that section 347 and the heading before it are repealed; and (b) the Consumer Privacy Protection Act is amended by adding the following after section 27: Money laundering, terrorist activity financing or sanctions evasion 27.1 (1) An organization may disclose an individual’s personal information to another organization without the individual’s knowledge or consent if the disclosure is made under subsection 11.01(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act . Collection and use (2) An organization may collect or use an individual’s personal information without their knowledge or consent if the information was disclosed to the organization under subsection (1). (3) If section 347 of this Act comes into force before section 3 of the other Act, then, on the day on which that section 3 comes into force, the Consumer Privacy Protection Act is amended by adding the following after section 27: Money laundering, terrorist activity financing or sanctions evasion 27.1 (1) An organization may disclose an individual’s personal information to another organization without the individual’s knowledge or consent if the disclosure is made under subsection 11.01(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act . Collection and use (2) An organization may collect or use an individual’s personal information without their knowledge or consent if the information was disclosed to the organization under subsection (1). (4) If section 3 of the other Act comes into force on the same day as section 347 of this Act, then that section 3 is deemed to have come into force before that section 347 and subsection (2) applies as a consequence. Coming into Force Royal assent or July 1, 2024 351 (1) Subsections 340 (1) and (3) and section 348 come into force on the later of July 1, 2024 and the day on which this Act receives royal assent. Order in council (2) Subsections 340 (2) and (4) and 342 (2) come into force on a day to be fixed by order of the Governor in Council. Order in council (3) Sections 341 , 344 and 347 come into force on a day to be fixed by order of the Governor in Council. Order in council (4) Section 346 comes into force on day to be fixed by order of the Governor in Council but that day must not be before the day on which section 182 of the Budget Implementation Act, 2023, No. 1 comes into force. SUBDIVISION B Income Tax Act and Excise Tax Act R.S., c. 1 (5th Supp.) Income Tax Act 352 The portion of subsection 231.3(7) of the Income Tax Act before paragraph (a) is replaced by the following: Return of things seized (7) Subject to section 231.32, if any document or thing seized under subsection (1) or (5) is brought before a judge or a report in respect of any document or thing seized is made to a judge, the judge may, of the judge’s own motion or on summary application by a person with an interest in the document or thing on three clear days notice of application to the Deputy Attorney General of Canada, order that the document or thing be returned to the person from whom it was seized or the person who is otherwise legally entitled to it if the judge is satisfied that the document or thing 353 The Act is amended by adding the following after section 231.3: Warrant under Criminal Code 231.31 (1) For the purposes of this Act and subject to subsection (2), a warrant may be issued under subsection 487.01(1) of the Criminal Code to an authorized person even though that person is not a peace officer. Video surveillance not authorized (2) The warrant is not to authorize the observation of a person by means of a video camera or other similar electronic device. Things seized 231.32 (1) Subsection (2) applies to an authorized person who has seized anything (a) under a warrant issued under the Criminal Code ; (b) under section 487.11 or 489 of the Criminal Code ; or (c) in the execution of duties under this Act. Restitution of things seized and report (2) If the authorized person is satisfied that the circumstances set out in subparagraphs 489.1(1)(a)(i) and (ii) of the Criminal Code apply in respect of the thing seized, the authorized person is, as soon as practicable, to return the thing seized and report in accordance with paragraph 489.1(1)(a) of that Act. R.S., c. E- 15 Excise Tax Act 354 The portion of subsection 290(7) of the Excise Tax Act before paragraph (a) is replaced by the following: Return of things seized (7) Subject to section 290.2, if any document or thing seized under subsection (1) or (5) is brought before a judge or a report in respect of any document or thing seized is made to a judge, the judge may, on the judge’s own motion or on summary application by a person with an interest in the document or thing on three clear days notice of application to the Deputy Attorney General of Canada, order that the document or thing be returned to the person from whom it was seized or the person who is otherwise legally entitled to it, if the judge is satisfied that the document or thing 355 The Act is amended by adding the following after section 290: Warrant under Criminal Code 290.1 (1) For the purposes of this Part and subject to subsection (2), a warrant may be issued under subsection 487.01(1) of the Criminal Code to an authorized person even though that person is not a peace officer. Video surveillance not authorized (2) The warrant is not to authorize the observation of a person by means of a video camera or other similar electronic device. Things seized 290.2 (1) Subsection (2) applies to an authorized person who has seized anything (a) under a warrant issued under the Criminal Code ; (b) under section 487.11 or 489 of the Criminal Code ; or (c) in the execution of duties under this Part. Restitution of things seized and report (2) If the authorized person is satisfied that the circumstances set out in subparagraphs 489.1(1)(a)(i) and (ii) of the Criminal Code apply in respect of the thing seized, the authorized person is, as soon as practicable, to return the thing seized and report in accordance with paragraph 489.1(1)(a) of that Act. SUBDIVISION C R.S., c. C- 46 Criminal Code Amendments to the Act 356 The Criminal Code is amended by adding the following after section 487.013: Keep account open or active order 487.0131 (1) On ex parte application made by a peace officer or public officer, a justice or judge may order a person to keep an account specified in the order open or active unless the holder of the account requests that the person close or deactivate the account. Conditions for making order (2) Before making the order, the justice or judge must be satisfied by information on oath in Form 5.0031 that there are reasonable grounds to suspect that (a) an offence has been or will be committed under this or any other Act of Parliament; and (b) keeping the account open or active will assist in the investigation of the offence. Form (3) The order is to be in Form 5.0032. Notification (4) The order is to require the person to notify a peace officer or public officer named in the order as soon as practicable after the account is closed or deactivated at the request of the holder of the account. Limitation (5) A person who is under investigation for the offence referred to in subsection (2) may not be made subject to an order. Expiry of order (6) Unless the order is revoked earlier, it expires 60 days after the day on which it is made. Renewals (7) A justice or judge may renew the order for a period of not more than 60 days on ex parte application made by a peace officer or public officer indicating the reason and period for which the renewal is required. Conditions for renewal (8) Before renewing the order, the justice or judge must be satisfied by information on oath in Form 5.0031 that the conditions specified in subsection (2) are met. 357 The Act is amended by adding the following after section 487.014: Production order — specified dates 487.0141 (1) On ex parte application made by a peace officer or public officer, a justice or judge may order a person to produce a document that is a copy of a document that is in their possession or control on any of the dates specified in the order or prepare and produce a document containing data that is in their possession or control on any of the dates specified in the order. Conditions for making order (2) Before making the order, the justice or judge must be satisfied by information on oath in Form 5.004 that there are reasonable grounds to believe that (a) an offence has been or will be committed under this or any other Act of Parliament; and (b) the document or data, if it is in the person’s possession or control on any of the dates to be specified in the order, will afford evidence respecting the commission of the offence. Form (3) The order is to be in Form 5.0051. Dates specified in order (4) The order may specify up to 10 dates that fall within the 60-day period after the day on which it is made. Suspicious transactions (5) The order may also require the person to produce to a peace officer or public officer named in the order a copy of all reports made under any of sections 7, 7.1 and 9 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act during the period the order is in effect if the justice or judge is satisfied by information on oath in Form 5.004 that there are reasonable grounds to believe that the information contained in such a report will afford evidence respecting the commission of the offence referred to in subsection (2). Restrictions (6) The person must not be required to (a) produce documents more than once in any 72-hour period; (b) produce a document that is a copy of a document that was in their possession or control before the day on which the order is made; or (c) prepare and produce a document that contains data that was in their possession or control before the day on which the order is made. Limitation (7) A person who is under investigation for the offence referred to in subsection (2) may not be made subject to an order. Expiry of order (8) Unless the order is revoked earlier, it expires 60 days after the day on which it is made. Renewals (9) A justice or judge may renew the order for a period of not more than 60 days on ex parte application made by a peace officer or public officer indicating the reason and period for which the renewal is required. Conditions for renewal (10) Before renewing the order, the justice or judge must be satisfied by information on oath in Form 5.004 that the conditions specified in subsection (2) are met. Dates specified in renewed order (11) If the order is renewed, it may specify up to 10 dates during the period for which it is renewed. 358 Subsection 487.019(1) of the Act is replaced by the following: Conditions in preservation and production orders 487.019 (1) An order made under any of sections 487.013 to 487.018 may contain any conditions that the justice or judge considers appropriate including, in the case of an order made under section 487.014 or 487.0141, conditions to protect a privileged communication between a person who is qualified to give legal advice and their client. 359 Subsections 487.0191(1) and (2) of the Act are replaced by the following: Order prohibiting disclosure 487.0191 (1) On ex parte application made by a peace officer or public officer, a justice or judge may make an order prohibiting a person from disclosing the existence or some or all of the contents of a preservation demand made under section 487.012 or an order made under any of sections 487.013 to 487.018 during the period set out in the order. Conditions for making order (2) Before making the order, the justice or judge must be satisfied by information on oath in Form 5.009 that there are reasonable grounds to believe that the disclosure during that period would jeopardize the conduct of the investigation of the offence to which the demand or order relates. 360 (1) Subsection 487.0192(1) of the Act is replaced by the following: Particulars — production orders 487.0192 (1) An order made under any of sections 487.014, 487.0141 and 487.016 to 487.018 must require a person, financial institution or entity to produce the document to a peace officer or public officer named in the order within the time, at the place and in the form specified in the order. (2) Subsection 487.0192(5) of the Act is replaced by the following: Probative force of copies (5) Every copy of a document produced under section 487.014 or 487.0141 is admissible in evidence in proceedings under this or any other Act of Parliament on proof by affidavit that it is a true copy and has the same probative force as the document would have if it were proved in the ordinary way. 361 The Act is amended by adding the following after section 487.0192: Application for review of keep account open or active order 487.01921 (1) A person who is subject to an order made under section 487.0131 may apply in writing to the justice or judge who made the order,  or to a judge in the judicial district where the order was made, to revoke or vary the order. Notice required (2) The person may make the application only if they give at least three days’ notice of their intention to do so to a peace officer or public officer named in the order. Compliance with order (3) The person must comply with the order until a decision is made with respect to the application. Hearing (4) The hearing of the application must be commenced within 14 days after the application is made or as soon as practicable after that period. Revocation or variation of order (5) The justice or judge may revoke or vary the order if they are satisfied that it is unreasonable in the circumstances to require the person to keep the account open or active. 362 Section 487.0195 of the Act is replaced by the following: For greater certainty 487.0195 (1) For greater certainty, no preservation demand, preservation order, keep account open or active order or production order is necessary for a peace officer or public officer to ask a person to voluntarily preserve data that the person is not prohibited by law from preserving, to voluntarily keep an account open or active that the person is not prohibited by law from keeping open or active or to voluntarily provide a document to the officer that the person is not prohibited by law from disclosing. No civil or criminal liability (2) A person who preserves data, keeps an account open or active or provides a document in those circumstances does not incur any criminal or civil liability for doing so. 363 Part XXVIII of the Act is amended by adding the following after Form 5.003: FORM 5.0031 (Subsections 487.0131(2) and (8)) Information To Obtain a Keep Account Open or Active Order Canada, Province of ( territorial division ) This is the information of ( name of peace officer or public officer ), of (“the informant”). The informant says that they have reasonable grounds to suspect that an offence has been or will be committed under ( specify the provision of the Criminal Code or other Act of Parliament ) and that keeping ( specify the account ) open or active will assist in the investigation of the offence. The reasonable grounds are: The informant therefore requests that ( name of the person ) be ordered to keep ( specify the account ) open or active for 60 days after the day on which the order is made. Sworn before me on ( date ), at ( place ). ( Signature of informant ) ( Signature of justice or judge ) FORM 5.0032 (Subsection 487.0131(3)) Keep Account Open or Active Order Canada, Province of ( territorial division ) To ( name of person ), of : Whereas I am satisfied by information on oath of ( name of peace officer or public officer ), of , that there are reasonable grounds to suspect that an offence has been or will be committed under ( specify the provision of the Criminal Code or other Act of Parliament ) and that keeping ( specify the account ) open or active will assist in the investigation of the offence; Therefore, you are required to (a) keep the specified account open or active until ( insert date ) unless the holder of the account requests that you close or deactivate it or this order is revoked or varied; and (b) notify ( name of peace officer or public officer ) as soon as practicable after the account is closed or deactivated at the request of the holder of the account. This order is subject to the following conditions: You have the right to apply to revoke or vary this order. If you contravene this order without lawful excuse, you may be subject to a fine, to imprisonment or to both. Dated ( date ), at ( place ). ( Signature of justice or judge ) 364 Form 5.004 of Part XXVIII of the Act is replaced by the following: FORM 5.004 (Subsections 487.014(2), 487.0141(2), (5) and (10), 487.015(2), 487.016(2), 487.017(2) and 487.018(3)) Information To Obtain a Production Order Canada, Province of ( territorial division ) This is the information of ( name of peace officer or public officer ), of (“the informant”). The informant says that they have reasonable grounds to suspect ( or, if the application is for an order under section 487.014 or 487.0141 of the Criminal Code , reasonable grounds to believe) (a) that an offence has been or will be committed under ( specify the provision of the Criminal Code or other Act of Parliament ); and (b) ( if the application is for an order under section 487.014 of the Criminal Code ) that ( specify the document or data ) is in the possession or control of ( name of the person ) and will afford evidence respecting the commission of the offence. (or) (b) ( if the application is for an order under section 487.0141 of the Criminal Code ) that ( specify the document or data ), if it is in the possession or control of ( name of the person ) on ( specify the dates to be specified in the order ), will afford evidence respecting the commission of the offence ( and if applicable , and that the information contained in all reports made under any of sections 7, 7.1 and 9 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act during the period the order is to be in effect will afford evidence respecting the commission of the offence). (or) (b) ( if the application is for an order under section 487.015 of the Criminal Code ) that the identification of a device or person involved in the transmission of ( specify the communication ) will assist in the investigation of the offence and that ( specify the transmission data ) that is in the possession or control of one or more persons whose identity is unknown will enable that identification. (or) (b) ( if the application is for an order under section 487.016 of the Criminal Code ) that ( specify the transmission data ) is in the possession or control of ( name of the person ) and will assist in the investigation of the offence. (or) (b) ( if the application is for an order under section 487.017 of the Criminal Code ) that ( specify the tracking data ) is in the possession or control of ( name of the person ) and will assist in the investigation of the offence. (or) (b) ( if the application is for an order under section 487.018 of the Criminal Code ) that ( specify the data ) is in the possession or control of ( name of the financial institution, person or entity ) and will assist in the investigation of the offence. The reasonable grounds are: The informant therefore requests ( if the application is for an order under section 487.014 of the Criminal Code ) that ( name of the person ) be ordered to produce a document that is a copy of ( specify the document ) that is in their possession or control when they receive the order ( and/or to prepare and produce a document containing ( specify the data ) that is in their possession or control when they receive the order). (or) ( if the application is for an order under section 487.0141 of the Criminal Code ) that ( name of the person ) be ordered to produce a document that is a copy of ( specify the document ) that is in their possession or control on ( specify the dates to be specified in the order ) ( and/or to prepare and produce a document containing ( specify the data ) that is in their possession or control on ( specify the dates to be specified in the order )) ( and if applicable , and that the person be ordered to produce a copy of all reports made under any of sections 7, 7.1 and 9 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act during the period the order is to be in effect). (or) ( if the application is for an order under section 487.015 of the Criminal Code ) that a person who is served with the order in accordance with subsection 487.015(4) of the Criminal Code be ordered to prepare and produce a document containing ( specify the transmission data ) that is in their possession or control when they are served with the order. (or) ( if the application is for an order under section 487.016 of the Criminal Code ) that ( name of the person ) be ordered to prepare and produce a document containing ( specify the transmission data ) that is in their possession or control when they receive the order. (or) ( if the application is for an order under section 487.017 of the Criminal Code ) that ( name of the person ) be ordered to prepare and produce a document containing ( specify the tracking data ) that is in their possession or control when they receive the order. (or) ( if the application is for an order under section 487.018 of the Criminal Code ) that ( name of the financial institution, person or entity ) be ordered to prepare and produce a document setting out ( specify the data ) that is in their possession or control when they receive the order. Sworn before me on ( date ), at ( place ). ( Signature of informant ) ( Signature of justice or judge ) 365 Part XXVIII of the Act is amended by adding the following after Form 5.005: FORM 5.0051 (Subsection 487.0141(3)) Production Order — Specified Dates Canada, Province of ( territorial division ) To ( name of person ), of : Whereas I am satisfied by information on oath of ( name of peace officer or public officer ), , that there are reasonable grounds to believe that an offence has been or will be committed under ( specify the provision of the Criminal Code or other Act of Parliament ) and that ( specify the document or data ), if it is in your possession or control on any of the dates specified in this order, will afford evidence respecting the commission of the offence ( and if applicable , and that the information contained in all reports you make under any of sections 7, 7.1 and 9 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act during the period this order is in effect will afford evidence respecting the commission of the offence); Therefore, you are ordered to produce a document that is a copy of ( specify the document ) that is in your possession or control on ( specify up to six dates ) ( and/or ) prepare and produce a document containing ( specify the data ) that is in your possession or control on ( specify up to six dates ) ( and if applicable ) produce a copy of all reports you make under any of sections 7, 7.1 and 9 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act . The document ( and if applicable and the copy of the report) must be produced to ( name of peace officer or public officer ) within ( time ) of each of the dates specified in this order at ( place ) in ( form ). This order is subject to the following conditions: You have the right to apply to revoke or vary this order. If you contravene this order without lawful excuse, you may be subject to a fine, to imprisonment or to both. Dated ( date ), at ( place ). ( Signature of justice or judge ) 366 Forms 5.009 and 5.0091 of Part XXVIII of the Act are replaced by the following: FORM 5.009 (Subsection 487.0191(2)) Information To Obtain a Non-Disclosure Order Canada, Province of ( territorial division ) This is the information of ( name of peace officer or public officer ), of (“the informant”). The informant says that they have reasonable grounds to believe that the disclosure of the existence (or any of the contents or any of the following portion or portions) of ( identify the preservation demand made under section 487.012 of the Criminal Code or the order made under any of sections 487.013 to 487.018 of that Act, as the case may be ) during ( identify the period ) would jeopardize the conduct of the investigation of the offence to which it relates: ( specify portion or portions ) The reasonable grounds are: The informant therefore requests an order prohibiting ( name of the person, financial institution or entity ) from disclosing the existence (or any of the contents or any of the specified portion or portions) of the demand (or the order) during a period of ( identify the period ) after the day on which the order is made. Sworn before me on ( date ), at ( place ). ( Signature of informant ) ( Signature of justice or judge ) FORM 5.0091 (Subsection 487.0191(3)) Non-Disclosure Order Canada, Province of ( territorial division ) To ( name of person, financial institution or entity ), of : Whereas I am satisfied by information on oath of ( name of peace officer or public officer ), of , that there are reasonable grounds to believe that the disclosure of the existence (or any of the contents or any of the portion or portions, specified in the information,) of ( identify the preservation demand made under section 487.012 of the Criminal Code or the order made under any of sections 487.013 to 487.018 of that Act, as the case may be ) during ( identify the period ) would jeopardize the conduct of the investigation of the offence to which it relates; Therefore, you are prohibited from disclosing the existence (or any of the contents or any of the following portion or portions) of the demand (or the order) during a period of ( identify the period ) after the day on which this order is made. ( specify portion or portions ) You have the right to apply to revoke or vary this order. If you contravene this order without lawful excuse, you may be subject to a fine, to imprisonment or to both. Dated ( date ), at ( place ). ( Signature of justice or judge ) Coming into Force 90th day after royal assent 367 This Subdivision comes into force on the 90th day after the day on which this Act receives royal assent. DIVISION 35 R.S., c. C- 46 Criminal Code (Motor Vehicle Theft) Amendments to the Act 368 (1) Subparagraph (a)(liv.1) of the definition offence in section 183 of the Criminal Code is replaced by the following: (liv.1) subsection 333.1(1) (motor vehicle theft), (liv.2) subsection 333.1(3) (motor vehicle theft when violence used, threatened or attempted), (liv.3) subsection 333.1(4) (motor vehicle theft for criminal organization), (2) Subparagraph (a)(lxxxiii) of the definition offence in section 183 of the Act is replaced by the following: (lxxxiii) subsection 462.31(1) (laundering proceeds of crime), (lxxxiii.1) subsection 462.31(2.1) (laundering proceeds of crime for criminal organization), 369 Section 333.1 of the Act is amended by adding the following after subsection (2): Motor vehicle theft when violence used, threatened or attempted (3) Everyone who commits theft in the commission of which violence against a person is used, threatened or attempted is, if the property stolen is a motor vehicle, guilty of an indictable offence and liable to imprisonment for a term not exceeding 14 years. Motor vehicle theft for criminal organization (4) Everyone who commits theft for the benefit of, at the direction of or in association with a criminal organization is, if the property stolen is a motor vehicle, guilty of an indictable offence and liable to imprisonment for a term not exceeding 14 years. 370 The Act is amended by adding the following after section 333.1: Possession of device for purpose of committing theft 333.2 (1) Everyone commits an offence who possesses an electronic device suitable for committing theft of a motor vehicle for the purpose of committing a motor vehicle theft offence. Distribution of device linked to theft (2) Everyone commits an offence who, without lawful excuse, makes, repairs, sells, offers for sale, imports into Canada, exports from Canada, distributes or makes available an electronic device suitable for committing theft of a motor vehicle, knowing that the device has been used or is intended to be used to commit a motor vehicle theft offence. Punishment (3) Everyone who commits an offence under subsection (1) or (2) (a) is guilty of an indictable offence and liable to imprisonment for a term not exceeding 10 years; or (b) is guilty of an offence punishable on summary conviction. Forfeiture (4) If a person is convicted of an offence under subsection (1) or (2), in addition to any punishment that is imposed, the electronic device in relation to which the offence was committed may be ordered forfeited to His Majesty and may be disposed of as the Attorney General directs. Limitation (5) No order of forfeiture may be made under subsection (4) in respect of any thing that is the property of a person who was not a party to the offence under subsection (1) or (2). 371 Subsection 462.31(3) of the Act is replaced by the following: Laundering proceeds of crime for criminal organization (2.1) Everyone who commits an offence under subsection (1) for the benefit of, at the direction of or in association with a criminal organization is guilty of an indictable offence and liable to imprisonment for a term not exceeding 14 years. Exception (3) A peace officer or a person acting under the direction of a peace officer is not guilty of an offence under subsection (1) or (2.1) if the peace officer or person does any of the things mentioned in that subsection for the purposes of an investigation or otherwise in the execution of the peace officer’s duties. 372 Paragraph 462.48(1.1)(f) of the French version of the Act is replaced by the following: f) soit une infraction ou un acte criminel prévus aux articles 354, 355.2, 355.4 ou 462.31 — ou le complot ou la tentative de commettre une telle infraction ou un tel acte ou la complicité après le fait à tel égard — qui aurait été commis à l’égard de biens, objets ou produits qui ont été obtenus ou proviennent directement ou indirectement de la perpétration au Canada d’une infraction ou d’un acte criminel mentionnés à l’un des alinéas a) à e) ou d’un acte ou d’une omission survenus à l’extérieur du Canada et qui, au Canada, aurait constitué une infraction ou un acte criminel mentionnés à l’un de ces alinéas. 373 (1) The definition primary designated offence in section 487.04 of the Act is amended by adding the following after subparagraph (a.1)(viii.2): (viii.3) subsection 333.1(3) (motor vehicle theft when violence used, threatened or attempted), (viii.4) subsection 333.1(4) (motor vehicle theft for criminal organization), (2) The definition primary designated offence in section 487.04 of the Act is amended by adding the following after subparagraph (a.1)(xiii): (xiii.1) subsection 462.31(2.1) (laundering proceeds of crime for criminal organization), (3) The definition secondary designated offence in section 487.04 of the Act is amended by adding the following after subparagraph (c)(viii.2): (viii.201) subsection 333.1(1) (motor vehicle theft), (viii.202) subsection 333.2(1) (possession of device for purpose of committing theft), (viii.203) subsection 333.2(2) (distribution of device linked to theft), 374 Paragraph 718.2(a) of the Act is amended by adding the following after subparagraph (ii.1): (ii.2) evidence that the offender involved a person under the age of 18 years in the commission of the offence, Consequential Amendments R.S., c. C-44; 1994, c. 24, s. 1(F) Canada Business Corporations Act 375 (1) Section 1 of the schedule to the Canada Business Corporations Act is amended by adding the following after paragraph (z.041): (z.0411) subsection 333.1(3) (motor vehicle theft when violence used, threatened or attempted); (z.0412) subsection 333.1(4) (motor vehicle theft for criminal organization); (2) Section 1 of the schedule to the Act is amended by adding the following after paragraph (z.095): (z.0951) subsection 462.31(2.1) (laundering proceeds of crime for criminal organization); 2000, c. 17; 2001, c. 41, s. 48 Proceeds of Crime (Money Laundering) and Terrorist Financing Act 376 The definition money laundering offence in subsection 2(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act is replaced by the following: money laundering offence  means an offence under subsection 462.31(1) or (2.1) of the Criminal Code . ( infraction de recyclage des produits de la criminalité ) 2000, c. 24 Crimes Against Humanity and War Crimes Act 377 Subsection 9(3) of the Crimes Against Humanity and War Crimes Act is replaced by the following: Personal consent of Attorney General (3) No proceedings for an offence under any of sections 4 to 7 of this Act, or under section 354 or subsection 462.31(1) or (2.1) of the Criminal Code in relation to property or proceeds obtained or derived directly or indirectly as a result of the commission of an offence under this Act, may be commenced without the personal consent in writing of the Attorney General or Deputy Attorney General of Canada, and those proceedings may be conducted only by the Attorney General of Canada or counsel acting on their behalf. Coordinating Amendments Bill C-59 378 If Bill C-59, introduced in the 1st session of the 44th Parliament and entitled the Fall Economic Statement Implementation Act, 2023 , receives royal assent, then, on the first day on which both section 308 of that Act and section 371 of this Act are in force, (a) subsections 462.31(1.1) to (1.3) of the Criminal Code are repealed; and (b) section 462.31 of the Criminal Code is amended by adding the following after subsection (2.1): Prosecution (2.2) Subject to subsection (2.4), in a prosecution for an offence under subsection (1) or (2.1), 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 (2.3) Subject to subsection (2.4), 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 (2.4) Subsections (2.2) and (2.3) do not apply in cases where the accused is also charged with the designated offence. Coming into Force 30th day after royal assent 379 This Division, other than section 378 , comes into force on the 30th day after the day on which this Act receives royal assent. DIVISION 36 R.S., c. R-2; 1989, c. 17, s. 2 Radiocommunication Act 380 Section 4 of the Radiocommunication Act is amended by adding the following after subsection (4): Other prohibitions — subsection 5.01(1) (5) Subject to subsection 5.01(2), no person shall manufacture, import, distribute, lease, offer for sale, sell or possess any radio apparatus, or equipment or device, or component of any equipment or device, or any class of radio apparatus, or equipment or device, or component of any equipment or device, specified by the Minister under subsection 5.01(1). 381 The Act is amended by adding the following after section 5: Subsection 4(5) — devices 5.01 (1) For the purposes of subsection 4(5), the Minister may, by order, specify any radio apparatus, or equipment or device, or component of any equipment or device, or any class of radio apparatus, or equipment or device, or component of any equipment or device, that the Minister is of the opinion, having regard to the circumstances, is likely used, or intended to be used, to intercept and make use of, or to intercept and divulge, any radiocommunication for a purpose that the Minister specifies in the order. Subsection 4(5) — exemption (2) For the purposes of subsection 4(5), the Minister may also, by order, exempt any person, or class of persons, in whole or in part, on the conditions that the Minister may specify, from the application of that subsection. Incorporation by reference 5.02 (1) An order made under subsection 5.01(1) or (2) may incorporate by reference any document, regardless of its source, either as it exists on a particular date or as it is amended from time to time. Accessibility of incorporated documents (2) The Minister shall ensure that any document that is incorporated by reference in the order is accessible. No finding of guilt or administrative penalty (3) A person is not liable to be found guilty of an offence or subjected to an administrative monetary penalty for any contravention in respect of which a document that is incorporated by reference in the order is relevant unless, at the time of the alleged contravention, the document was accessible as required by subsection (2) or it was otherwise accessible to the person. No registration or publication required (4) For greater certainty, a document that is incorporated by reference in the order is not required to be transmitted for registration or published in the Canada Gazette by reason only that it is incorporated by reference. Existing power not limited (5) For greater certainty, the express power in this section to incorporate a document by reference does not limit the power that otherwise exists to incorporate a document by reference in a regulation made under this Act. 382 The portion of section 15.1 of the Act before paragraph (a) is replaced by the following: Commission of violation 15. 1 Every contravention of any of subsections 4(1), (3) to (5) and 5(1.5) constitutes a violation and the person who commits the violation is liable DIVISION 37 1993, c. 38 Telecommunications Act Amendments to the Act 383 The Telecommunications Act is amended by adding the following after section 27: Self-service Self-service mechanism 27.01 (1) A telecommunications service provider must make available to its subscribers a self-service mechanism that meets the requirements established by the Commission under subsection (2) and allows them, within the terms of the contract for telecommunications services that they have entered into with the provider, to cancel the contract or modify the telecommunications service plan established under the contract. Requirements (2) For the purposes of subsection (1), the Commission must establish what constitutes self-service and the requirements in relation to self-service mechanisms. The Commission may also specify types of self-service mechanisms that are acceptable for the purposes of that subsection. Notices Notice of expiry 27.02 (1) A telecommunications service provider that has a fixed-term contract for telecommunications services with a subscriber must, before the expiry of the contract, provide the subscriber with a notice that the contract is set to expire. Form and manner (2) The Commission must specify the form and manner in which — as well as the time within which and the frequency at which — the notice is to be provided under subsection (1). Content of notice (3) The notice must contain, for the purpose of assisting the subscriber in selecting a new telecommunications service plan, (a) a list of telecommunications service plans offered by the telecommunications service provider that meet the criteria that the Commission may specify; (b) information relating to those plans, to be specified by the Commission; (c) information relating to the self-service mechanism referred to in section 27.01; and (d) any other information that the Commission may specify. Notice 27. 03 The Commission may require a telecommunications service provider to provide — in the form and manner and at the frequency that the Commission specifies — its subscribers who do not have a fixed-term contract for telecommunications services with a notice containing the information set out in subsection 27.02(3). Prohibition Prohibition 27.04 (1) A telecommunications service provider must not charge a fee to a subscriber that is related to the activation or modification of a telecommunications service plan, or any other fee whose main purpose is, in the opinion of the Commission, to discourage subscribers from modifying their service plan or cancelling their contract for telecommunications services. Types of fees (2) The Commission must specify the types of fees for the purposes of subsection (1). Exemption Exemption 27. 05 The Commission may, subject to any conditions that it may specify, exempt any telecommunications service provider or class of telecommunications service providers from the application, in whole or in part, of sections 27.01, 27.02 and 27.04. Coming into Force Order in council 384 This Division comes into force on a day to be fixed by order of the Governor in Council. DIVISION 38 Immigrant Stations 1992, c. 20 Corrections and Conditional Release Act 385 (1) Section 5 of the Corrections and Conditional Release Act is amended by striking out “and” at the end of paragraph (d), by adding “and” at the end of paragraph (e) and by adding the following after paragraph (e): (f) the implementation of arrangements entered into between the Commissioner and the Canada Border Services Agency under section 94.3. (2) Paragraph 5(f) of the Act is repealed. 386 The Act is amended by adding the following before section 59: Definition of visitor 58. 1 Despite the definition visitor in subsection 2(1), in sections 59 and 60 visitor does not include an immigration detainee , as defined in section 94.1. 387 Section 58.1 of the Act is repealed. 388 The Act is amended by adding the following after section 94: Support to Canada Border Services Agency Definitions 94. 1 The definitions in this section apply in sections 94.2, 94.3 and 94.5 to 94.8. designated immigrant station  means any area of a penitentiary designated under subsection 94.4(1). ( poste d’attente désigné ) detention enforcement officer  means a person who is designated or authorized under section 6 of the Immigration and Refugee Protection Act . ( agent de détention ) immigration detainee  means a person who is detained under the Immigration and Refugee Protection Act . ( détenu de l’immigration ) Support 94.2 (1) The Service may, in accordance with an arrangement entered into under section 94.3, provide support, including through the provision of services, to the Canada Border Services Agency (a) to assist the Agency in the exercise of the powers and the performance of the duties and functions that relate to the Immigration and Refugee Protection Act and are conferred on it under subsection 12(1) of the Canada Border Services Agency Act ; and (b) to assist detention enforcement officers in the exercise of the powers or the performance of the duties and functions that are conferred on them under the Immigration and Refugee Protection Act or that relate to that Act and are conferred on them under subsection 12(2) of the Canada Border Services Agency Act . Limitation (2) The support referred to in subsection (1) must not include (a) the placement of a staff member in immediate charge or control of an immigrant station , as defined in subsection 142(2) of the Immigration and Refugee Protection Act ; (b) subject to subsection 94.7(4), the search, escort, arrest or detention of an immigration detainee by a staff member; or (c) subject to subsection 94.7(5), the provision of health care to an immigration detainee by a registered health care professional employed or engaged by the Service. Arrangements 94.3 (1) The Commissioner may enter into an arrangement with the Canada Border Services Agency for the provision, by the Service, of support, including through the provision of services, to the Agency in order to assist it in the exercise of the powers or the performance of the duties and functions referred to in paragraph 94.2(1)(a) and to assist detention enforcement officers in the exercise of the powers or the performance of the duties and functions referred to in paragraph 94.2(1)(b). Approval of Minister (2) An arrangement is subject to the approval of the Minister. Mandatory terms (3) An arrangement must include terms that (a) specify the duration of the arrangement, the nature of the support to be provided and the name of a penitentiary of which an area may be the subject of a designation under subsection 94.4(1); and (b) set out a procedure — to which every immigration detainee is to have complete access without negative consequences — for fairly and expeditiously resolving immigration detainees’ complaints with respect to activities carried out under an authorization granted under subsection 94.7(4) or health care provided under subsection 94.7(5). Cost recovery (4) An arrangement may provide for the recovery of costs incurred by the Service with respect to the provision of support to the Canada Border Services Agency. Designation 94.4 (1) At the written request of the President of the Canada Border Services Agency, the Commissioner may, for the purpose of implementing an arrangement entered into under subsection 94.3(1), designate any area of a penitentiary named in the arrangement for the purpose of subsection 142(3) of the Immigration and Refugee Protection Act . Deeming (2) Except as otherwise provided in this Act or the regulations or in any other Act of Parliament or its regulations, an area designated under subsection (1) is deemed not to be a penitentiary. Prohibition — access to penitentiary 94.5 (1) A staff member or a detention enforcement officer must not permit an immigration detainee of a designated immigrant station adjacent to a penitentiary to have access to an area of the penitentiary unless (a) the institutional head authorizes the access to the area so that the Service may provide support under subsection 94.2(1); (b) the immigration detainee is escorted by a detention enforcement officer; and (c) no inmate is present in the area. Non-application of paragraph (1)(c) (2) Paragraph (1)(c) does not apply with respect to an immigration detainee of a designated immigrant station adjacent to a penitentiary during any period that begins when the institutional head declares under paragraph 94.7(1)(a) that exigent circumstances exist with respect to the designated immigrant station and ends when the institutional head is satisfied that those exigent circumstances no longer exist. Prohibition — access to immigrant station 94.6 (1) A staff member or detention enforcement officer must not permit an inmate of a penitentiary to have access to a designated immigrant station adjacent to the penitentiary. Non-application (2) Subsection (1) does not apply with respect to an inmate of a penitentiary during any period that begins when the institutional head declares under paragraph 94.7(1)(b) that exigent circumstances exist with respect to the penitentiary and ends when the institutional head is satisfied that those exigent circumstances no longer exist if (a) the institutional head authorizes the access to the immigrant station; and (b) the inmate is escorted by a staff member. Exigent circumstances — declaration 94.7 (1) The institutional head of a penitentiary may declare in writing that exigent circumstances exist with respect to (a) a designated immigrant station adjacent to the penitentiary, if the institutional head is satisfied that there are reasonable grounds to believe that there is a clear and substantial danger to the life or safety of persons in the designated immigrant station or to the security of the designated immigrant station; or (b) the penitentiary, if the institutional head is satisfied that there are reasonable grounds to believe that there is a clear and substantial danger to the life or safety of persons in the penitentiary or to the security of the penitentiary. Notice — staff members and detention enforcement officers (2) If the institutional head declares under subsection (1) that exigent circumstances exist with respect to a designated immigrant station adjacent to the penitentiary or with respect to the penitentiary adjacent to a designated immigrant station, the institutional head must immediately notify the staff members of the penitentiary and the detention enforcement officers of the designated immigrant station. When the institutional head is satisfied that the exigent circumstances no longer exist, the institutional head must immediately notify the staff members and detention enforcement officers. Notice — portion of Service that administers health care (3) If the institutional head declares under paragraph (1)(a) that exigent circumstances exist with respect to a designated immigrant station, the institutional head must immediately notify the portion of the Service that administers health care. When the institutional head is satisfied that the exigent circumstances no longer exist, the institutional head must immediately notify that portion of the Service. Additional support (4) If the institutional head declares under paragraph (1)(a) that exigent circumstances exist with respect to a designated immigrant station, the institutional head may, during the period in which they are satisfied that the exigent circumstances exist, authorize a staff member to search, escort, arrest or detain an immigration detainee in the designated immigrant station to assist a detention enforcement officer in the exercise of the powers or the performance of the duties and functions referred to in paragraph 94.2(1)(b). Health care (5) During the period that begins when the portion of the Service that administers health care is notified under subsection (3) that exigent circumstances exist with respect to a designated immigrant station and ends when it is notified under that subsection that the exigent circumstances no longer exist, a registered health care professional employed or engaged by the Service may provide health care to an immigration detainee of the designated immigrant station if the professional considers it necessary in order to preserve the life of, or treat a serious bodily injury suffered by, that detainee. Delivery of items (6) If, in the course of activities carried out under an authorization granted under subsection (4), a staff member finds an item that the Canada Border Services Agency has prohibited within the designated immigrant station, the staff member must immediately deliver the item to a detention enforcement officer. Seizure (7) If an item is delivered to a detention enforcement officer under subsection (6), the detention enforcement officer may seize and hold the item under section 140 of the Immigration and Refugee Protection Act . Peace officer (8) In the course of activities carried out under an authorization granted under subsection (4), a staff member has all the powers, authority, protection and privileges that a peace officer has by law in respect of an immigration detainee. Members of Parliament and judges 94. 8 Every member of the House of Commons, every Senator and every judge of a court in Canada has the right to enter any designated immigrant station, visit any part of a designated immigrant station and visit any immigration detainee, with the consent of the immigration detainee, subject to such reasonable limits as are prescribed for protecting the security of the designated immigrant station or the safety of persons. 389 The heading before section 94.1 and sections 94.1 to 94.8 of the Act are repealed. 2001, c. 27 Immigration and Refugee Protection Act 390 (1) Section 142 of the Immigration and Refugee Protection Act is renumbered as subsection 142(1) and is amended by adding the following: Definition of immigrant station (2) In this section, immigrant station means, subject to subsection (3), a facility that is operated by the Canada Border Services Agency — or used by a peace officer or any party to an agreement or arrangement entered into under paragraph 13(2)(b) of the Canada Border Services Agency Act — for the purpose of detaining persons under this Act. Area of a penitentiary (3) An area of a penitentiary , as defined in subsection 2(1) of the Corrections and Conditional Release Act , may be an immigrant station only if it is designated under subsection 94.4(1) of that Act. Detention (4) A person detained under this Act must not be detained in a designated immigrant station , as defined in section 94.1 of the Corrections and Conditional Release Act , unless, subject to subsections (5) to (7), the Minister determines that the person is to be detained in a designated immigrant station because the person requires a high degree of supervision and control, based on (a) the nature and level of the danger to the public that the person poses, having regard to any of the following factors: (i) any conviction in Canada under an Act of Parliament for a sexual offence or an offence involving violence or weapons, (ii) any conviction outside Canada for an offence that, if committed in Canada, would constitute a sexual offence or an offence involving violence or weapons under an Act of Parliament, (iii) any pending charges in Canada under an Act of Parliament for a sexual offence or an offence involving violence or weapons, (iv) any pending charges outside Canada, for an offence that, if committed in Canada, would constitute a sexual offence or an offence involving violence or weapons under an Act of Parliament, (v) association with a criminal organization , within the meaning of subsection 121.1(1), or (vi) association with an organization that engages, or has engaged, in terrorism; or (b) any serious non-compliance by the person with the rules, applicable in an immigrant station, any other detention facility or any correctional facility where the person is or has been detained, with respect to (i) the possession of weapons or the possession of or dealing in controlled substances , as defined in subsection 2(1) of the Controlled Drugs and Substances Act , or (ii) violent or aggressive behaviour towards any other person. Minor children (5) The Minister must not determine that a minor child detained under this Act is to be detained in a designated immigrant station. Requirements prior to determination (6) Before determining that a person detained under this Act is to be detained in a designated immigrant station, the Minister must (a) provide the person with a written notice informing them that the Minister is considering making a determination that the person is to be detained in a designated immigrant station and informing them of the right to make submissions and to retain and instruct counsel; (b) allow the person a reasonable opportunity to exercise the rights referred in paragraph (a); and (c) consider the person’s state of health and health care needs, including with respect to their mental health. Written reasons (7) If the Minister determines that a person detained under this Act is to be detained in a designated immigrant station, the Minister must provide the person with written reasons for the determination before the person is detained in a designated immigrant station. Emergencies (8) Subsections (6) and (7) do not apply in an emergency in which a person detained under the Act must be immediately detained in a designated immigrant station because of a risk to the safety of the person or to other persons in, or a risk to the security of, the immigrant station where the person is or would otherwise be detained. Rights of person detained (9) If a person is detained in a designated immigrant station in the circumstances described in subsection (8), the Minister must (a) as soon as feasible after the person is detained in the designated immigrant station, provide the person with a written notice informing them that the Minister is considering making a determination that the person is to remain detained in a designated immigrant station and informing them of the right to make submissions and to retain and instruct counsel; and (b) allow the person a reasonable opportunity to exercise the rights referred in paragraph (a). Written reasons (10) If the Minister determines that a person detained in a designated immigrant station in the circumstances described in subsection (8) is to remain detained in the designated immigrant station, the Minister must provide the person with written reasons for the determination. (2) Subsections 142(2) to (10) of the Act are repealed. Transitional Provision 391 On the coming into force of section 389 , any arrangement entered into under section 94.3 of Corrections and Conditional Release Act that is still in effect is terminated and any designation made under subsection 94.4(1) of that Act is revoked. Coordinating Amendment 2019, c. 27 392 If section 18 of An Act to amend the Corrections and Conditional Release Act and another Act comes into force before section 387 of this Act, then, on the first day on which both that section 18 and section 386 of this Act are in force, section 58.1 of the Corrections and Conditional Release Act is replaced by the following: Definition of visitor 58. 1 Despite the definition visitor in subsection 2(1), in sections 59, 60 and 60.1 visitor does not include an immigration detainee , as defined in section 94.1. Coming into Force Fifth anniversary of royal assent 393 Subsection 385 (2), sections 387 and 389 and subsection 390 (2) come into force on the fifth anniversary of the day on which this Act receives royal assent. DIVISION 39 Measures Related to Public Debt and the Borrowing of Money SUBDIVISION A R.S., c. F- 11 Financial Administration Act 394 (1) Subsection 44(3) of the French version of the Financial Administration Act is replaced by the following: Pouvoirs relatifs aux emprunts (3) S’il l’estime indiqué, le ministre peut, sous réserve des conditions éventuellement précisées par le gouverneur en conseil, conclure des contrats ou des accords, émettre des titres et prendre toute autre mesure se rapportant aux emprunts. (2) Section 44 of the Act is amended by adding the following after subsection (3): Non-application of regulations and directions (3.1) Regulations and directions made under subsection 41(1) do not apply in respect of contracts entered into under subsection (3). SUBDIVISION B 2017, c. 20, s. 103 Borrowing Authority Act Amendment to the Act 395 The portion of section 4 of the Borrowing Authority Act before paragraph (a) is replaced by the following: Maximum amount that may be borrowed 4 Despite section 3 and any other Act of Parliament, but subject to section 6, the total of the following amounts must not at any time exceed $2,126,000,000,000: Coordinating Amendments This Act 396 If, on the day on which this Act receives royal assent, paragraph 4(b) of the Borrowing Authority Act is not amended by any other provision of this Act, then (a) section 395 of this Act is deemed never to have come into force and is repealed; and (b) the portion of section 4 of the Borrowing Authority Act before paragraph (a) is replaced by the following: Maximum amount that may be borrowed 4 Despite section 3 and any other Act of Parliament, but subject to section 6, the total of the following amounts must not at any time exceed $2,228,000,000,000: DIVISION 40 Legislation Related to Financial Institutions (Diversity Disclosure) 1991, c. 45 Trust and Loan Companies Act 397 The Trust and Loan Companies Act is amended by adding the following after section 162: Disclosure Relating to Diversity Diversity 162.1 (1) The directors of a company of a prescribed class must make available, in accordance with regulations made under subsection (2), prescribed information respecting diversity among directors and members of senior management, as defined by regulation, at the same time that a notice of annual meeting is sent under subsection 141(1) to shareholders entitled to receive that notice and to the Superintendent. Regulations (2) For the purposes of subsection (1), the Governor in Council may make regulations respecting the disclosure of information related to diversity among the directors and members of senior management of a company of a prescribed class. 1991, c. 46 Bank Act 398 The Bank Act is amended by adding the following after section 214: Disclosure Relating to Diversity Diversity 214.1 (1) The directors of a bank of a prescribed class must make available, in accordance with regulations made under subsection (2), information respecting diversity among directors and members of senior management, as defined by regulation, at the same time that a notice of annual meeting is sent under subsection 138(1) to shareholders or members entitled to receive that notice and to the Superintendent. Regulations (2) For the purposes of subsection (1), the Governor in Council may make regulations respecting the disclosure of information related to diversity among the directors and members of senior management of a bank of a prescribed class. 399 The Act is amended by adding the following after section 801: Disclosure Relating to Diversity Diversity 801.1 (1) The directors of a bank holding company of a prescribed class must make available, in accordance with regulations made under subsection (2), information respecting diversity among directors and members of senior management, as defined by regulation, at the same time that a notice of annual meeting is sent under subsection 727(1) to shareholders entitled to receive that notice and to the Superintendent. Regulations (2) For the purposes of subsection (1), the Governor in Council may make regulations respecting the disclosure of information related to diversity among the directors and members of senior management of a bank holding company of a prescribed class. 1991, c. 47 Insurance Companies Act 400 The Insurance Companies Act is amended by adding the following after section 166: Disclosure Relating to Diversity Diversity 166.1 (1) The directors of a company of a prescribed class must make available, in accordance with regulations made under subsection (2), information respecting diversity among directors and members of senior management, as defined by regulation, at the same time that a notice of annual meeting is sent under subsection 143(1) to shareholders and policy holders entitled to receive that notice and to the Superintendent. Regulations (2) For the purposes of subsection (1), the Governor in Council may make regulations respecting the disclosure of information related to diversity among the directors and members of senior management of a company of a prescribed class. 401 The Act is amended by adding the following after section 795: Disclosure Relating to Diversity Diversity 795.1 (1) The directors of an insurance holding company of a prescribed class must make available, in accordance with regulations made under subsection (2), information respecting diversity among directors and members of senior management, as defined by regulation, at the same time that a notice of annual meeting is sent under subsection 767(1) to shareholders entitled to receive that notice and to the Superintendent. Regulations (2) For the purpose of subsection (1), the Governor in Council may make regulations respecting the disclosure of information related to diversity among the directors and members of senior management of an insurance holding company of a prescribed class. Coming into Force Order in council 402 This Division comes into force on a day to be fixed by order of the Governor in Council. DIVISION 41 Legislation Related to Financial Institutions (Sunset Provisions) 1991, c. 45 Trust and Loan Companies Act 403 Subsection 20(1) of the Trust and Loan Companies Act is replaced by the following: Sunset provision 20 (1) Subject to subsections (2) and (4), companies shall not carry on business after June 30, 2026. 1991, c. 46 Bank Act 404 Subsection 21(1) of the Bank Act is replaced by the following: Sunset provision 21 (1) Subject to subsections (2) and (4), banks shall not carry on business, and authorized foreign banks shall not carry on business in Canada, after June 30, 2026. 405 Subsection 670(1) of the Act is replaced by the following: Sunset provision 670 (1) Subject to subsections (2) and (4), bank holding companies shall not carry on business after June 30, 2026. 1991, c. 47 Insurance Companies Act 406 Subsection 21(1) of the Insurance Companies Act is replaced by the following: Sunset provision 21 (1) Subject to subsections (2) and (4), companies and societies shall not carry on business, and foreign companies shall not carry on business in Canada, after June 30, 2026. 407 Subsection 707(1) of the Act is replaced by the following: Sunset provision 707 (1) Subject to subsections (2) and (4), insurance holding companies shall not carry on business after June 30, 2026. DIVISION 42 Measures Related to the Canada Disability Benefit R.S., c. F-7; 2002, c. 8, s. 14 Federal Courts Act 408 Paragraph 28(1)(g.1) of the Federal Courts Act is replaced by the following: (g.1) the Appeal Division of the Social Security Tribunal established under section 44 of the Department of Employment and Social Development Act , unless the decision is made under subsection 57(2) or section 58.2 of that Act or relates to an appeal respecting a decision relating to further time to make a request under (i) subsection 52(2) of that Act, (ii) section 81 of the Canada Pension Plan , (iii) section 27.1 of the Old Age Security Act , (iv) section 112 of the Employment Insurance Act , or (v) any regulations made under subsection 11(1) of the Canada Disability Benefit Act regarding reviews or reconsiderations; R.S., c. T- 2 Tax Court of Canada Act 409 Section 12 of the Tax Court of Canada Act is amended by adding the following after subsection (1): Jurisdiction — Canada Disability Benefit Act (1.1) The Court has exclusive original jurisdiction to hear and determine references on matters arising under the Canada Disability Benefit Act and referred to in subsection 66(2) of the Department of Employment and Social Development Act . 410 Subsection 18.29(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 Canada Disability Benefit Act , to the extent that a ground of the appeal involves a decision or determination as to income. 2005, c. 34; 2013, c. 40, s. 205 Department of Employment and Social Development Act 411 The Department of Employment and Social Development Act is amended by adding the following after section 65: Jurisdiction — Canada Disability Benefit Act 66 (1) Subject to subsection (2), the Tribunal may decide any question of law or fact that is necessary to dispose of any appeal brought under the Canada Disability Benefit Act . Reference as to income (2) If, on an appeal to the Tribunal, it is a ground of the appeal that a decision or determination made by the Minister as to income under the Canada Disability Benefit Act was incorrectly made, the appeal on that ground must, in accordance with the regulations made under that Act, be referred for decision to the Tax Court of Canada, whose decision, subject only to variation by that Court in accordance with any decision on an appeal under the Tax Court of Canada Act relevant to the appeal to the Tribunal, is final and binding for all purposes of the appeal to the Tribunal except in accordance with the Federal Courts Act . Coordinating Amendment 2023, c. 26 412 On the first day on which both section 656 of the Budget Implementation Act, 2023, No. 1 and section 408 of this Act are in force, paragraph 28(1)(g.1) of the Federal Courts Act is replaced by the following: (g.1) the Appeal Division of the Social Security Tribunal established under section 44 of the Department of Employment and Social Development Act , unless the decision is made under subsection 54.2(2) or 57(2) or section 58.2 of that Act or relates to an appeal respecting a decision relating to further time to make a request under (i) subsection 43.11(2) or 52(2) of that Act, (ii) section 81 of the Canada Pension Plan , (iii) section 27.1 of the Old Age Security Act , (iv) section 112 of the Employment Insurance Act , or (v) any regulations made under subsection 11(1) of the Canada Disability Benefit Act regarding reviews or reconsiderations; DIVISION 43 1996, c. 19 Controlled Drugs and Substances Act Amendments to the Act 413 (1) Paragraph 55(1)(c) of the Controlled Drugs and Substances Act is replaced by the following: (c) respecting the issuance, suspension, cancellation, duration and terms and conditions of any licence or authorization or class of licences or authorizations for any dealing in any substance included in Schedule I, II, III, IV, V or VI or any class of those substances, including the importation into Canada, exportation from Canada, production, packaging, sale, provision, administration, possession, transportation, sending or delivery of the substance or class of substances; (2) Paragraph 55(1)(d.1) of the Act is replaced by the following: (d.1) authorizing the Minister to impose terms and conditions on any licence, authorization or permit, including existing licences, authorizations or permits, and to amend those terms and conditions; (3) Paragraph 55(1)(h) of the Act is replaced by the following: (h) respecting the qualifications of persons who are engaged in the production, preservation, testing, packaging, storage, selling, providing or otherwise dealing in any controlled substance or precursor or any class of any controlled substance or precursor and who do so under the supervision of a person licensed or authorized under the regulations to do any such thing; (4) Subsection 55(1.2) of the Act is repealed. 414 Subsection 56(2) of the Act is repealed. 415 Sections 56.1 and 56.2 of the Act are repealed. Transitional Provisions Definitions 416 The following definitions apply in this section and sections 417 to 419 . commencement day  means the day on which subsection 413 (4) and sections 414 and 415 come into force. ( date de référence ) previous version  means the Controlled Drugs and Substances Act , as it reads immediately before commencement day. ( version antérieure ) regulatory scheme  means regulations that are made under subsection 55(1) of the Controlled Drugs and Substances Act , as it reads on the day on which this section comes into force, respecting authorizations for activities that could be allowed under an exemption granted under subsection 56.1(1) of the previous version. ( régime réglementaire ) Exemptions 417 (1) An exemption granted under subsection 56.1(1) of the previous version that is valid immediately before commencement day is deemed to be an authorization issued under the regulatory scheme on that day. Validity period (2) Subsection (1) does not have the effect of extending the validity period of the exemption. Terms and conditions (3) For greater certainty, the terms and conditions of the exemption are terms and conditions of the authorization. However, if there is a conflict between any of those terms and conditions and a requirement of the regulatory scheme, the requirement of the regulatory scheme prevails to the extent of the conflict. Applications 418 If an application for an exemption under subsection 56.1(1) of the previous version is submitted before commencement day and the minister responsible for the previous version has not, before that day, made a decision in relation to the application, the application is deemed to have been submitted on that day as an application for an authorization under the regulatory scheme. Regulations 419 The Governor in Council may make any regulations that the Governor in Council considers necessary to provide for any other transitional matter arising from the coming into force of the regulatory scheme. Coming into Force Order in council 420 Subsection 413 (4) and sections 414 and 415 come into force on a day to be fixed by order of the Governor in Council.