First Session, Forty-fourth Parliament, 70-71 Elizabeth II – 1-2 Charles III, 2021-2022-2023 |
HOUSE OF COMMONS OF CANADA |
An Act to implement certain provisions of the fall economic statement tabled in Parliament on November 21, 2023 and certain provisions of the budget tabled in Parliament on March 28, 2023
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FIRST READING, November 30, 2023
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DEPUTY PRIME MINISTER AND MINISTER OF FINANCE |
Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to implement certain provisions of the fall economic statement tabled in Parliament on November 21, 2023 and certain provisions of the budget tabled in Parliament on March 28, 2023”.
Part 1 implements certain measures in respect of the Income Tax Act and the Income Tax Regulations by
(a) limiting the deductibility of net interest and financing expenses by certain corporations and trusts, consistent with certain Organisation for Economic Co-operation and Development and the Group of Twenty Base Erosion and Profit Shifting project recommendations;
(b) implementing hybrid mismatch rules consistent with the Organisation for Economic Co-operation and Development and the Group of Twenty Base Erosion and Profit Shifting project recommendations regarding cross-border tax avoidance structures that exploit differences in the income tax laws of two or more countries to produce “deduction/non-inclusion mismatches”;
(c) allowing expenditures incurred in the exploration and development of all lithium to qualify as Canadian exploration expenses and Canadian development expenses;
(d) ensuring that only genuine intergenerational business transfers are excluded from the anti-surplus stripping rule in section 84.1 of the Income Tax Act;
(e) denying the dividend received deduction for dividends received by Canadian financial institutions on certain shares that are held as mark-to-market property;
(f) increasing the rate of the rural supplement for Climate Action Incentive payments (CAIP) from 10% to 20% for the 2023 and subsequent taxation years as well as referencing the 2016 census data for the purposes of the CAIP rural supplement eligibility for the 2023 and 2024 taxation years;
(g) providing a refundable investment tax credit to qualifying businesses for eligible carbon capture, utilization and storage equipment;
(h) providing a refundable investment tax credit to qualifying businesses for eligible clean technology equipment;
(i) introducing, under certain circumstances, labour requirements in relation to the new refundable investment tax credits for eligible carbon capture, utilization and storage equipment as well as eligible clean technology equipment;
(j) removing the requirement that credit unions derive no more than 10% of their revenue from sources other than certain specified sources;
(k) permitting a qualifying family member to acquire rights as successor of a holder of a Registered Disability Savings Plan following the death of that plan’s last remaining holder who was also a qualifying family member;
(l) implementing consequential changes of a technical nature to facilitate the operation of the existing rules for First Home Savings Accounts;
(m) introducing a tax of 2% on the net value of equity repurchases by certain Canadian corporations, trusts and partnerships whose equity is listed on a designated stock exchange;
(n) exempting certain fees from the refundable tax applicable to contributions under retirement compensation arrangements;
(o) introducing a technical amendment to the provision that authorizes the sharing of taxpayer information for the purposes of the Canadian Dental Care Plan;
(p) implementing a number of amendments to the general anti-avoidance rule (GAAR) as well as introducing a new penalty applicable to transactions subject to the GAAR and extending the normal reassessment period for the GAAR by three years in certain circumstances;
(q) facilitating the creation of employee ownership trusts;
(r) introducing specific anti-avoidance rules in relation to corporations referred to as substantive CCPCs; and
(s) extending the phase-out by three years, and expanding the eligible activities, in relation to the reduced tax rates for certain zero-emission technology manufacturers.
It also makes related and consequential amendments to the Excise Tax Act and the Excise Act, 2001.
Part 2 enacts the Digital Services Tax Act and its regulations. That Act provides for the implementation of an annual tax of 3% on certain types of digital services revenue earned by businesses that meet certain revenue thresholds. It sets out rules for the purposes of establishing liability for the tax and also sets out applicable reporting and filing requirements. To promote compliance with its provisions, that Act includes modern administration and enforcement provisions generally aligned with those found in other taxation statutes. Finally, this Part also makes related and consequential amendments to other texts to ensure proper implementation of the tax and cohesive and efficient administration by the Canada Revenue Agency.
Part 3 implements certain Goods and Services Tax/Harmonized Sales Tax (GST/HST) measures by
(a) ensuring that an interest in a corporation that does not have its capital divided into shares is treated as a financial instrument for GST/HST purposes;
(b) ensuring that interest and dividend income from a closely related partnership is not included in the determination of whether a person is a de minimis financial institution for GST/HST purposes;
(c) ensuring that an election related to supplies made within a closely related group of persons that includes a financial institution may not be revoked on a retroactive basis without the permission of the Minister of National Revenue;
(d) making technical amendments to an election that allows electing members of a closely related group to treat certain supplies made between them as having been made for nil consideration;
(e) ensuring that certain supplies between the members of a closely related group are not inadvertently taxed under the imported taxable supply rules that apply to financial institutions;
(f) raising the income threshold for the requirement to file an information return by certain financial institutions;
(g) allowing up to seven years to assess the net tax adjustments owing by certain financial institutions in respect of the imported taxable supply rules;
(h) expanding the GST/HST exemption for services rendered to individuals by certain health care practitioners to include professional services rendered by psychotherapists and counselling therapists;
(i) providing relief in relation to the GST/HST treatment of payment card clearing services;
(j) allowing the joint venture election to be made in respect of the operation of a pipeline, rail terminal or truck terminal that is used for the transportation of oil, natural gas or related products;
(k) raising the input tax credit (ITC) documentation thresholds from $30 to $100 and from $150 to $500 and allowing billing agents to be treated as intermediaries for the purposes of the ITC information rules; and
(l) extending the 100% GST rebate in respect of new purpose-built rental housing to certain cooperative housing corporations.
It also implements an excise tax measure by creating a joint election mechanism to specify who is eligible to claim a rebate of excise tax for goods purchased by provinces for their own use.
Part 4 implements certain excise measures by
(a) allowing vaping product licensees to import packaged vaping products for stamping by the licensee and entry into the Canadian duty-paid market as of January 1, 2024;
(b) permitting all cannabis licensees to elect to remit excise duties on a quarterly rather than a monthly basis, starting from the quarter that began on April 1, 2023;
(c) amending the marking requirements for vaping products to ensure that the volume of the vaping substance is marked on the package;
(d) requiring that a person importing vaping products must be at least 18 years old; and
(e) introducing administrative penalties for certain infractions related to the vaping taxation framework.
Part 5 enacts and amends several Acts in order to implement various measures.
Subdivision A of Division 1 of Part 5 amends Subdivision A of Division 16 of Part 6 of the Budget Implementation Act, 2018, No. 1 to clarify the scope of certain non-financial activities in which federal financial institutions may engage and to remove certain discrepancies between the English and French versions of that Act.
Subdivision B of Division 1 of Part 5 amends the Trust and Loan Companies Act, the Bank Act and the Insurance Companies Act to, among other things, permit federal financial institutions governed by those Acts to hold certain meetings by virtual means without having to obtain a court order and to permit voting during those meetings by virtual means.
Division 2 of Part 5 amends the Canada Labour Code to, among other things, provide a leave of absence of three days in the event of a pregnancy loss and modify certain provisions related to bereavement leave.
Division 3 of Part 5 enacts the Canada Water Agency Act. That Act establishes the Canada Water Agency, whose role is to assist the Minister of the Environment in exercising or performing that Minister’s powers, duties and functions in relation to fresh water. The Division also makes consequential amendments to other Acts.
Division 4 of Part 5 amends the Tobacco and Vaping Products Act to, among other things,
(a) authorize the making of regulations respecting fees or charges to be paid by tobacco and vaping product manufacturers for the purpose of recovering the costs incurred by His Majesty in right of Canada in relation to the carrying out of the purpose of that Act;
(b) provide for related administration and enforcement measures; and
(c) require information relating to the fees or charges to be made available to the public.
Division 5 of Part 5 amends the Canadian Payments Act to, among other things, provide that additional persons are entitled to be members of the Canadian Payments Association and clarify the composition of that Association’s Stakeholder Advisory Council.
Division 6 of Part 5 amends the Competition Act to, among other things,
(a) modernize the merger review regime, including by modifying certain notification rules, clarifying that Act’s application to labour markets, allowing the Competition Tribunal to consider the effect of changes in market share and the likelihood of coordination between competitors following a merger, extending the limitation period for mergers that were not the subject of a notification to the Commissioner of Competition and placing a temporary restraint on the completion of certain mergers until the Tribunal has disposed of any application for an interim order;
(b) improve the effectiveness of the provisions that address anti-competitive conduct, including by allowing the Commissioner to review the effects of past agreements and arrangements, ensuring that an order related to a refusal to deal may address a refusal to supply a means of diagnosis or repair and ensuring that representations of a product’s benefits for protecting the environment must be supported by adequate and proper tests;
(c) strengthen the enforcement framework, including by creating new remedial orders, such as administrative monetary penalties, with respect to those collaborations that harm competition, by creating a civilly enforceable procedure to address non-compliance with certain provisions of that Act and by broadening the classes of persons who may bring private cases before the Tribunal and providing for the availability of monetary payments as a remedy in those cases; and
(d) provide for new procedures, such as the certification of agreements or arrangements related to protecting the environment and a remedial process for reprisal actions.
The Division also amends the Competition Tribunal Act to prevent the Competition Tribunal from awarding costs against His Majesty in right of Canada, except in specified circumstances.
Finally, the Division makes a consequential amendment to one other Act.
Division 7 of Part 5 amends the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act to exclude from their application prescribed public post-secondary educational institutions.
Subdivision A of Division 8 of Part 5 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to, among other things,
(a) provide that, if a person or entity referred to in section 5 of that Act has reasonable grounds to suspect possible sanctions evasion, the relevant information is reported to the Financial Transactions and Reports Analysis Centre of Canada;
(b) add reporting requirements for persons and entities providing certain services in respect of private automatic banking machines;
(c) require declarations respecting money laundering, the financing of terrorist activities and sanctions evasion to be made in relation to the importation and exportation of goods; and
(d) authorize the Financial Transactions and Reports Analysis Centre of Canada to disclose designated information to the Department of the Environment and the Department of Fisheries and Oceans, subject to certain conditions.
It also amends the Budget Implementation Act, 2023, No. 1 in relation to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and makes consequential amendments to other Acts and a regulation.
Subdivision B of Division 8 of Part 5 amends the Criminal Code to, among other things,
(a) in certain circumstances, provide that a court may infer the knowledge or belief or recklessness required in relation to the offence of laundering proceeds of crime and specify that 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;
(b) remove, in the context of the special warrants and restraint order in relation to proceeds of crime, the requirement for the Attorney General to give an undertaking, as well as permit a judge to attach conditions to a special warrant for search and seizure of property that is proceeds of crime; and
(c) modify certain provisions relating to the production order for financial data to include elements specific to accounts associated with digital assets.
It also makes consequential amendments to the Seized Property Management Act and the Forfeited Property Sharing Regulations.
Division 9 of Part 5 retroactively amends section 42 of the Federal-Provincial Fiscal Arrangements Act to specify the payments about which information must be published on a Government of Canada website, as well as the information that must be published.
Division 10 of Part 5 amends the Public Sector Pension Investment Board Act to increase the number of directors in the Public Sector Pension Investment Board, as well as to provide for consultation with the portion of the National Joint Council of the Public Service of Canada that represents employees when certain candidates are included on the list for proposed appointment as directors.
Division 11 of Part 5 enacts the Department of Housing, Infrastructure and Communities Act, which establishes the Department of Housing, Infrastructure and Communities, confers on the Minister of Infrastructure and Communities various responsibilities relating to public infrastructure and confers on the Minister of Housing various responsibilities relating to housing and the reduction and prevention of homelessness. The Division also makes consequential amendments to other Acts and repeals the Canada Strategic Infrastructure Fund Act.
Division 12 of Part 5 amends the Employment Insurance Act to, among other things, create a benefit of 15 weeks for claimants who are carrying out responsibilities related to
(a) the placement with the claimant of one or more children for the purpose of adoption; or
(b) the arrival of one or more new-born children of the claimant into the claimant’s care, in the case where the person who will be giving or gave birth to the child or children is not, or is not intended to be, a parent of the child or children.
The Division also amends the Canada Labour Code to create a leave of absence of up to 16 weeks for an employee to carry out such responsibilities.
Available on the House of Commons website at the following address:
www.ourcommons.ca
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Fall Economic Statement Implementation Act, 2023
Enactment of Act
Digital Services Tax Act
Definitions
Negative or undefined results
Determination of revenue
Short fiscal year — global revenue threshold
Continuity of consolidated group
Mergers
Arm’s length
His Majesty
Tax payable
Definitions
Basic rule
Definition of online marketplace services revenue
Canadian online marketplace services revenue
Definition of online advertising services revenue
Canadian online advertising services revenue
Definition of social media services revenue
Canadian social media services revenue
Definition of user data revenue
Canadian user data revenue
Revenue of new constituent entities
Attribution of activity
Definitions
Determination
Definitions
Trustee as agent or mandatary
Tax payable for bankruptcy
Filing and payment
Tax payable for receivership
Filing and payment
Non-calendar year periods
Certificates for receivers
Partnerships
Definitions
Series of transactions
Definitions
Minister’s duty
Staff
Administration of oaths
Waiving the filing of documents
Requirement to register
Application to register
De-registration
Notice of intent
Requirement to file return
Election — designated entity
Extension of time
Demand for return
Payments
Manner and form of payments
Assessment of another constituent entity
Definition of transaction
Payment in Canadian dollars
Definition of electronic payment
Small amounts owing by a person
Compound interest
Waiving or cancelling interest
Dishonoured instruments
Statutory recovery rights
Refund — payment in error
Restriction — application to other debts
Restriction — unfulfilled filing requirements
Restriction — trustees
Overpayment of refund or interest
Keeping records
Requirement to provide information or records
Assessment
Notice of assessment
Payment by Minister on assessment
Limitation period for assessments
Assessment deemed valid and binding
Objections to assessment
Extension of time by Minister
Extension of time by Tax Court of Canada
Appeal to Tax Court of Canada
Extension of time to appeal
Limitation on appeals
Institution of appeals
Disposition of appeal
References to Tax Court of Canada
Reference of common questions to Tax Court
Payment by the Minister on appeal
Failure to register when required
Failure to file return when required
Failure to provide information
Unreasonable appeal
Definitions
General penalty
Payment of penalties
Waiving or cancelling penalties
Failure to file or comply
Offences for false or deceptive statement
Failure to pay tax
Offence — confidential information
General offence
Defence of due diligence
Compliance orders
Officers of corporations, etc.
Power to decrease punishment
Information or complaint
Authorized person
Compliance order
Search warrants
Definition of foreign-based information or record
Inquiry
Copies
Compliance
Definitions
Definitions
Collection restrictions
Security
Certificates
Garnishment
Recovery by deduction or set-off
Acquisition of debtor’s property
Money seized from debtor
Seizure if failure to pay
Person leaving Canada
Authorization to proceed without delay
Service
Timing of receipt
Proof of sending or service by mail
Regulations
Positive or negative amount — regulations
Incorporation by reference — limitation removed
Certificates and registrations not statutory instruments
Making
Definitions
Interest to be paid to the Receiver General
Global revenue threshold
In-scope revenue threshold
Registration threshold
Rate
Deduction amount
Enactment of Act
Canada Water Agency Act
Definitions
Establishment
Head office
Minister to preside
Delegation to Agency
Appointment
Chief executive officer
Remuneration
Officers and employees
Other government services and facilities
Provision of services and facilities
Committees
Definitions
Position
Appropriations
Transfer of powers, duties and functions
Clarification
Enactment of Act
Department of Housing, Infrastructure and Communities Act
Definition of Department
Department established
Deputy Minister
Minister of Infrastructure and Communities
Powers, duties and functions
Appointment
Powers, duties and functions
Use of departmental services and facilities
No Minister appointed
General duties and powers
Committees
1st Session, 44th Parliament, 70-71 Elizabeth II – 1-2 Charles III, 2021-2022-2023 |
HOUSE OF COMMONS OF CANADA |
BILL C-59 |
An Act to implement certain provisions of the fall economic statement tabled in Parliament on November 21, 2023 and certain provisions of the budget tabled in Parliament on March 28, 2023 |
His Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
1 This Act may be cited as the Fall Economic Statement Implementation Act, 2023.
R.S., c. 1 (5th Supp.)
(l.2) the amount determined by the formula
(i) if the taxpayer is an excluded entity for the year (as defined in subsection 18.2(1)), nil, and
(ii) in any other case, the proportion determined under the first formula in subsection 18.2(2) in respect of the taxpayer for the year;
End of inserted block(n.3) the total of all amounts received by the taxpayer in the year in the course of a business out of or under a retirement compensation arrangement ( Insertion start including amounts received in respect of the arrangement under subsection 207.71(3) Insertion end ) to which the taxpayer, another person who carried on a business that was acquired by the taxpayer, or any person with whom the taxpayer or that other person does not deal at arm’s length, has contributed an amount that was deductible under paragraph 20(1)(r) in computing the contributor’s income for a taxation year;
(t) the amount deducted under subsection 127(5) or (6) Insertion start or 127.44(3) Insertion end 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), Insertion start (c)(vi.1) Insertion end 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);
(t) the amount deducted under subsection 127(5) or (6), 127.44(3) or Insertion start 127.45(6) Insertion end 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) Insertion start to (c)(vi.2) Insertion end 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);
(d.2) a FHSA,
End of inserted block(7) Subsections (1) and (5) apply in respect of taxation years of a taxpayer that begin on or after October 1, 2023. However, subsections (1) and (5) also apply in respect of a taxation year of a taxpayer that begins before, and ends after, October 1, 2023 if
(a) any of the taxpayer’s three immediately preceding taxation years was, because of a transaction or event or a series of transactions or events, shorter than it would have been in the absence of that transaction, event or series; and
(b) it can reasonably be considered that one of the purposes of the transaction, event or series was to defer the application of paragraph 12(1)(l.2) of the Act, as enacted by subsection (1), or the application of section 18.2 or 18.21 of the Act, as enacted by subsection 7(1), to the taxpayer.
(8) Subsection (2) applies to the 2024 and subsequent taxation years.
(9) Subsection (3) is deemed to have come into force on January 1, 2022.
(10) Subsection (4) is deemed to have come into force on March 28, 2023.
(11) Subsection (6) is deemed to have come into force on April 1, 2023.
(a) the payment arises under a hybrid mismatch arrangement; and
(b) there is a foreign deduction component of the hybrid mismatch arrangement.
End of inserted block(a) included in computing the taxpayer’s income from the same source as the payment; and
(b) included in computing the taxpayer’s income for the last taxation year of the taxpayer that begins at or before the end of the first foreign taxation year of any entity in which an amount in respect of the payment, in the absence of any foreign expense restriction rule, would be — or would reasonably be expected to be — deductible in computing relevant foreign income or profits of the entity.
End of inserted block(2) Subsection (1) applies in respect of payments arising on or after July 1, 2022, except that subsection 12.7(3) of the Act, as enacted by subsection (1), does not apply to the portion of a payment that
(a) arises because of subsection 18.4(9) of the Act, as enacted by subsection 8(1); and
(b) relates to the portion of a notional interest expense that is computed in respect of a period of time that precedes January 1, 2023.
(e) where the property was acquired in a taxation year ending before the particular time, all amounts deducted under subsection 127(5) or (6) Insertion start or 127.44(3) Insertion end by the taxpayer for a taxation year ending before the particular time,
(e) where the property was acquired in a taxation year ending before the particular time, all amounts deducted under subsection 127(5) or (6), 127.44(3) or Insertion start 127.45(6) Insertion end by the taxpayer for a taxation year ending before the particular time,
(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 Insertion start 127.44 Insertion end , the property is deemed
(a) subject to paragraph (b), for the purposes of the description of A in the definition undepreciated capital cost in subsection (21) and of sections 127, 127.1, 127.44 and Insertion start 127.45 Insertion end , the property is deemed
(10) Subsections (1), (3), (5), (6) and (8) are deemed to have come into force on January 1, 2022.
(11) Subsections (2), (4), (7) and (9) are deemed to have come into force on March 28, 2023.
(a) immediately following the qualifying business transfer,
(i) the lender or creditor is a qualifying business, and
(ii) the borrower is the employee ownership trust that controls the qualifying business described in subparagraph (i);
(b) the sole purpose of the loan or the debt is to facilitate the qualifying business transfer; and
(c) at the time the loan was made or the debt incurred, bona fide arrangements were made for repayment of the loan or debt within 15 years of the qualifying business transfer.
End of inserted block(2) Subsection (1) applies in respect of transactions that occur on or after January 1, 2024.
(2) Subsection (1) applies in respect of taxation years of a taxpayer that begin on or after October 1, 2023. However, subsection (1) also applies in respect of a taxation year that begins before, and ends after, October 1, 2023 if
(a) any of the taxpayer’s three immediately preceding taxation years was, because of a transaction or event or a series of transactions or events, shorter than it would have been in the absence of that transaction, event or series; and
(b) it can reasonably be considered that one of the purposes of the transaction, event or series was to defer the application of paragraph 12(1)(l.2) of the Act, as enacted by subsection 2(1), or the application of section 18.2 or 18.21 of the Act, as enacted by subsection 7(1), to the taxpayer.
absorbed capacity of a taxpayer for a taxation year means the lesser of
(a) the taxpayer’s cumulative unused excess capacity for the year, determined as if the taxpayer’s absorbed capacity for the year were nil, and
(b) the amount determined by the formula
(i) if subsection 18.21(2) applies in respect of the taxpayer for the year, the amount determined in respect of the taxpayer for the year under that subsection, and
(ii) in any other case, the amount determined by the formula
adjusted taxable income of a taxpayer for a taxation year means the amount determined by the formula
(a) if the taxpayer is non-resident, the taxpayer’s taxable income earned in Canada for the year (determined without regard to subsection (2) and paragraphs 12(1)(l.2) and 111(1)(a.1)), and
(b) in any other case, the taxpayer’s taxable income for the year (determined without regard to subsection (2), paragraphs 12(1)(l.2) and 111(1)(a.1) and clause 95(2)(f.11)(ii)(D)), and
(a) the taxpayer’s non-capital loss for the year (determined without regard to subsection (2), paragraphs 12(1)(l.2) and 111(1)(a.1) and clause 95(2)(f.11)(ii)(D)), and
(b) the total of all amounts each of which is, in respect of a corporation that is a controlled foreign affiliate of the taxpayer at the end of an affiliate taxation year ending in the year — or a controlled foreign affiliate of a partnership, of which the taxpayer or a controlled foreign affiliate of the taxpayer is a member, at the end of an affiliate taxation year ending in a fiscal period of the partnership — an amount determined by the formula
(i) the affiliate’s foreign accrual property loss (determined without regard to clause 95(2)(f.11)(ii)(D)) for the affiliate taxation year, and
(ii) the amount by which the affiliate’s relevant affiliate interest and financing expenses for the affiliate taxation year exceeds the affiliate’s relevant affiliate interest and financing revenues for the affiliate taxation year,
(a) the taxpayer’s interest and financing expenses for the year,
(b) an amount deducted by the taxpayer in computing its income for the year under paragraph 20(1)(a) or 59.1(a) or subsection 66(4), 66.1(2) or (3), 66.2(2), 66.21(4), 66.4(2) or 66.7(1), (2), (2.3), (3), (4) or (5), other than any portion of that amount that is described in subparagraph (c)(ii) of the description of A in the definition interest and financing expenses,
(c) an amount deducted by the taxpayer in computing its income for the year under subsection 20(16), other than any portion of that amount that is described in paragraph (d) of the description of A in the definition interest and financing expenses,
(d) in respect of the income or loss of a partnership, for a fiscal period that ends in the year, from any source or from sources in a particular place, an amount determined by the formula
(e) the portion of an amount deducted under paragraph 111(1)(e) for the year, in respect of a partnership of which the taxpayer is a member, that can reasonably be considered to be attributable to an amount referred to in the description of H in paragraph (d) in respect of a fiscal period of the partnership ending in a preceding taxation year of the taxpayer,
(f) an amount deducted by the taxpayer under paragraph 110(1)(k) in computing its taxable income for the year,
(g) an amount deducted by the taxpayer under subsection 104(6) in computing its income for the year, except to the extent of any portion of the amount that has been designated under subsection 104(19) for the year,
(h) an amount determined by the formula
(i) the non-capital loss for the taxpayer loss year, and
(ii) the amount determined by the formula
(A) the interest and financing expenses of the taxpayer for the taxpayer loss year, determined without regard to any amount or portion of an amount that is not deductible because of subsection (2) or clause 95(2)(f.11)(ii)(D),
(B) described in any of paragraphs (b) to (g) or (j) to (m) of the description of B for the taxpayer loss year, or
(C) deducted by the taxpayer under paragraph 111(1)(a.1) in computing its taxable income for the taxpayer loss year,
(A) described in any of paragraphs (a) to (f), (h) or (j) of the description of C for the taxpayer loss year, or
(B) included in the income of the taxpayer for the taxpayer loss year by reason of paragraph 12(1)(l.2), and
(A) the foreign accrual property loss, for an affiliate taxation year, of a corporation (referred to throughout the description of Y as the “affiliate”) that, at the end of the affiliate taxation year, is a controlled foreign affiliate of the taxpayer, or is a controlled foreign affiliate of a partnership of which the taxpayer or a controlled foreign affiliate of the taxpayer is a member at any time, and
(B) the amount by which the affiliate’s relevant affiliate interest and financing expenses for the affiliate taxation year (determined without regard to any amount or portion of an amount that is not deductible because of clause 95(2)(f.11)(ii)(D)) exceeds the total of all amounts, each of which is
(I) the affiliate’s relevant affiliate interest and financing revenues for the affiliate taxation year, or
(II) an amount included under subclause 95(2)(f.11)(ii)(D)(II) in respect of the affiliate for the affiliate taxation year,
(i) 25% of the amount deducted, in respect of a specified pre-regime loss of the taxpayer in respect of the year, by the taxpayer under paragraph 111(1)(a) in computing its taxable income for the year,
(j) in respect of a corporation (referred to in this paragraph as the “affiliate”) that is a controlled foreign affiliate of the taxpayer at the end of an affiliate taxation year ending in the year — or that is a controlled foreign affiliate of a partnership, of which the taxpayer or a controlled foreign affiliate of the taxpayer is a member at any time, at the end of an affiliate taxation year ending in a fiscal period of the partnership — the additional amount that would be included in the taxpayer’s income, either under subsection 91(1) or because an amount would be included in the income of a partnership under that subsection, in respect of the affiliate’s foreign accrual property income for the affiliate taxation year, if the affiliate’s foreign accrual property income for the affiliate taxation year were increased by the amount determined by the formula
(i) the affiliate’s foreign accrual property loss for the affiliate loss year, and
(ii) the amount by which the affiliate’s relevant affiliate interest and financing expenses for the affiliate loss year (determined without regard to any amount or portion of an amount that is not deductible because of clause 95(2)(f.11)(ii)(D)) exceeds the total of all amounts, each of which is
(A) the affiliate’s relevant affiliate interest and financing revenues for the affiliate loss year, or
(B) an amount included under subclause 95(2)(f.11)(ii)(D)(II) in respect of the affiliate for the affiliate loss year, and
(k) the amount that would be the taxpayer’s loss for the year, or that would be the taxpayer’s share of the loss of a partnership of which the taxpayer is a member, if the taxpayer or partnership had no income or loss other than a loss that can reasonably be considered to be incurred by the taxpayer or the partnership in respect of activities funded by a borrowing (within the meaning of the definition exempt interest and financing expenses) that results in exempt interest and financing expenses of the taxpayer or the partnership,
(l) an amount deducted under subsection 127(5) or (6), 127.44(3) or 127.45(6) in respect of a property acquired in a preceding taxation year in computing the taxpayer’s tax payable for a preceding taxation year to the extent that it
(i) is included in an amount determined under paragraph 13(7.1)(e) or subparagraph 53(2)(c)(vi) to (vi.2) or (h)(ii) or for I in the definition undepreciated capital cost in subsection 13(21), and
(ii) was not included
(A) in computing the taxpayer’s income for the year or a preceding taxation year, and
(B) under this paragraph in calculating the taxpayer’s adjusted taxable income for a preceding taxation year, or
(m) an amount described in clause 12(1)(x)(i)(C) or subparagraph 12(1)(x)(ii) that is received by the taxpayer in the year to the extent that it
(i) reduces the cost or capital cost of a property,
(ii) is not included in computing the income of the taxpayer for the year under paragraph 12(1)(x), and
(iii) would be included in computing the income of the taxpayer for the year under paragraph 12(1)(x) if that paragraph were read without reference to its subparagraphs (vi) and (vii); and
(a) the taxpayer’s interest and financing revenues for the year,
(b) an amount included under subsection 13(1) in computing the taxpayer’s income for the year,
(c) in respect of the income or loss of a partnership, for a fiscal period that ends in the year, from any source or from sources in a particular place, an amount determined by the formula
(d) an amount included under subsection 59(1) or (3.2) or paragraph 59.1(b) in computing the taxpayer’s income for the year,
(e) in the case of a corporation
(i) 100/28 of the total of the amounts that would be deductible by it under subsection 126(1) from its tax for the year otherwise payable under this Part if those amounts were determined without reference to sections 123.3 and 123.4, or
(ii) the amount determined by multiplying the total of the amounts that would be deductible by it under subsection 126(2) from its tax for the year otherwise payable under this Part, if those amounts were determined without reference to section 123.4, by the relevant factor for the year,
(f) in the case of a trust, the amount determined by the formula
(g) an amount included under section 110.5 in computing the taxpayer’s taxable income for the year,
(h) an amount included under subsection 104(13) in computing the taxpayer’s income for the year, except to the extent of any portion of the amount that
(i) has been designated under subsection 104(19) for the year, or
(ii) gives rise to a deduction under paragraph 94.2(3)(a) in computing the foreign accrual property income for an affiliate taxation year of an entity that is a controlled foreign affiliate of the taxpayer at the end of the affiliate taxation year,
(i) an amount of the taxpayer’s taxable income for the year that is not, because of an Act of Parliament, subject to tax under this Part, or
(j) the amount that would be the taxpayer’s income for the year, or that would be the taxpayer’s share of the income of a partnership of which the taxpayer is a member, if the taxpayer or partnership had no income or loss other than income that can reasonably be considered to be earned by the taxpayer or the partnership in respect of activities funded by a borrowing (within the meaning of the definition exempt interest and financing expenses) that results in exempt interest and financing expenses of the taxpayer or the partnership. (revenu imposable rajusté)
affiliate taxation year of a controlled foreign affiliate means the period for which the accounts of the affiliate have been ordinarily made up, but no such period may exceed 53 weeks. (année d’imposition de la société affiliée)
cumulative unused excess capacity of a taxpayer for a particular taxation year means the total of all amounts each of which is
(a) the excess capacity of the taxpayer for the particular year, or
(b) the excess capacity of the taxpayer for any of the three immediately preceding taxation years, if the taxpayer’s excess capacity for each of those years is determined according to the following rules:
(i) if the taxpayer has an amount of transferred capacity for any taxation year (referred to in this definition as the “transfer year”) preceding the particular year,
(A) there are to be reductions to the taxpayer’s excess capacity for the transfer year and the three taxation years immediately preceding the transfer year (each referred to in this subparagraph as a “relevant year”) in a total amount equal to the total of all amounts each of which is an amount of transferred capacity of the taxpayer for the transfer year (referred to in this definition as the “total transferred capacity amount”), and
(B) the amount by which the taxpayer’s excess capacity for a particular relevant year is to be reduced is equal to the lesser of
(I) the taxpayer’s excess capacity for the particular relevant year, determined taking into consideration any reductions to that excess capacity under
1 this subparagraph, in respect of amounts of transferred capacity for years preceding the transfer year, and
2 subparagraph (ii), in respect of amounts of absorbed capacity for the transfer year and any years preceding the transfer year, and
(II) the amount, if any, by which the total transferred capacity amount for the transfer year exceeds the reductions, under this subparagraph in respect of that total transferred capacity amount, to the taxpayer’s excess capacity for any relevant years preceding the particular relevant year, and
(ii) if the taxpayer has an amount of absorbed capacity for a taxation year (referred to in this definition as the “absorbed capacity year”),
(A) there are to be reductions to the taxpayer’s excess capacity for the three taxation years immediately preceding the absorbed capacity year (each referred to in this subparagraph as a “relevant year”) in a total amount equal to the amount of absorbed capacity for the absorbed capacity year, and
(B) the amount by which the taxpayer’s excess capacity for a particular relevant year is to be reduced is equal to the lesser of
(I) the taxpayer’s excess capacity for the particular relevant year, determined taking into account any reductions to that excess capacity under
1 subparagraph (i), in respect of amounts of transferred capacity for years preceding the absorbed capacity year, and
2 this subparagraph, in respect of amounts of absorbed capacity for years preceding the absorbed capacity year, and
(II) the amount, if any, by which the amount of absorbed capacity for the absorbed capacity year exceeds the reductions under this subparagraph in respect of that amount of absorbed capacity to the taxpayer’s excess capacity for the relevant years preceding the particular relevant year. (capacité excédentaire cumulative inutilisée)
eligible group entity, in respect of a taxpayer resident in Canada, at any time, means a corporation, or a trust, resident in Canada
(a) that is, at that time, related (other than because of a right referred to in paragraph 251(5)(b)) to the taxpayer;
(b) that would, at that time, be affiliated with the taxpayer if section 251.1 were read without reference to the definition controlled in subsection 251.1(3);
(c) that is a trust in respect of which the taxpayer’s interest in the trust is not a fixed interest (as defined in subsection 94(1)); or
(d) that is a beneficiary of the taxpayer, if the taxpayer is a trust, whose interest in the taxpayer is not a fixed interest (as defined in subsection 94(1)) (other than a beneficiary that is a registered charity, or a non-profit organization, with whom the taxpayer deals at arm’s length). (entité admissible du groupe)
excess capacity of a taxpayer for a taxation year means
(a) if subsection 18.21(2) applies in respect of the taxpayer for the year, nil; and
(b) in any other case, the amount determined by the formula
(i) the amount by which the interest and financing revenues of the taxpayer for the year exceed the interest and financing expenses of the taxpayer for the year, and
(ii) either
(A) if the adjusted taxable income of the taxpayer for the year would, in the absence of section 257, be a negative amount, the absolute value of the negative amount, or
(B) in any other case, nil,
excluded entity for a particular taxation year means
(a) a corporation that is throughout the particular year a Canadian-controlled private corporation in respect of which the amount determined for C in paragraph 125(5.1)(a) for the year is less than $50,000,000;
(b) a particular taxpayer resident in Canada, if $1,000,000 is not less than the amount determined by the formula
(i) the particular taxpayer for the particular taxation year, or
(ii) another taxpayer resident in Canada for a taxation year (referred to in this subparagraph as the “relevant taxation year”) ending in the particular taxation year, if the other taxpayer is an eligible group entity in respect of the particular taxpayer at the end of the relevant taxation year, and
(i) the reference in the description of A to “the interest and financing expenses or the exempt interest and financing expenses” were read as a reference to “the interest and financing revenues”, and
(ii) the interest and financing revenues of a financial institution group entity were excluded; or
(c) a taxpayer resident in Canada if
(i) all or substantially all of the businesses, if any, and all or substantially all of the undertakings and activities of
(A) the taxpayer are, throughout the particular year, carried on in Canada, and
(B) each eligible group entity in respect of the taxpayer are, throughout the eligible group entity’s taxation year that ends in the particular year, carried on in Canada,
(ii) throughout the year, it is the case that
(A) the total of all amounts, each of which is the amount at which the shares of the capital stock of a foreign affiliate of the taxpayer, a foreign affiliate of an eligible group entity in respect of the taxpayer or a foreign affiliate of a partnership of which the taxpayer or an eligible group entity in respect of the taxpayer is a member, would be valued for the purpose of the balance sheet of the taxpayer or the eligible group entity if that balance sheet were prepared in accordance with generally accepted accounting principles used in Canada, other than any amount or portion of an amount that is already included under this clause because the value of the shares of the capital stock of a particular foreign affiliate reflects the value of shares of the capital stock of another foreign affiliate that is owned, directly or indirectly, by the particular foreign affiliate, or
(B) the total of all amounts, each of which is the amount that can reasonably be considered to be the proportionate share, of the taxpayer or an eligible group entity in respect of the taxpayer, of the fair market value of all property of a foreign affiliate of the taxpayer, a foreign affiliate of an eligible group entity in respect of the taxpayer or a foreign affiliate of a partnership of which the taxpayer or an eligible group entity in respect of the taxpayer is a member, other than a property that is shares of the capital stock of another corporation that is a foreign affiliate of the taxpayer, a foreign affiliate of an eligible group entity in respect of the taxpayer or a foreign affiliate of a partnership of which the taxpayer or an eligible group entity in respect of the taxpayer is a member,
(iii) no person or partnership is, at any time in the particular year,
(A) a specified shareholder or a specified beneficiary (as those terms are defined in subsection 18(5)) of the taxpayer, or of any eligible group entity in respect of the taxpayer, that is not resident in Canada, or
(B) a partnership more than 50% of the fair market value of all interests in which can reasonably be considered to be held, directly or indirectly through one or more trusts or partnerships, by non-resident persons, if the property of the partnership includes,
(I) if the taxpayer or the eligible group entity in respect of the taxpayer is a corporation, shares, or a right to acquire shares, of the capital stock of the taxpayer or an eligible group entity in respect of the taxpayer that, either alone or together with shares, or rights to acquire shares, held by persons or partnerships with whom the partnership does not deal at arm’s length,
1 provide 25% or more of the votes that could be cast at an annual meeting of the shareholders of the corporation, or
2 have 25% or more of the fair market value of all capital stock in the corporation, or
(II) if the taxpayer or the eligible group entity in respect of the taxpayer is a trust, an interest, or a right to acquire an interest, as a beneficiary in the taxpayer or an eligible group entity in respect of the taxpayer that, either alone or together with interests, or rights to acquire interests, held by persons or partnerships with whom the partnership does not deal at arm’s length, has 25% or more of the fair market value of all interests as a beneficiary in the trust, and
(iv) all or substantially all of the interest and financing expenses of the taxpayer and of each eligible group entity in respect of the taxpayer for the particular year are paid or payable to persons or partnerships that are not, at any time in the particular year, tax-indifferent persons or partnerships that do not deal at arm’s length with the taxpayer or any eligible group entity in respect of the taxpayer. (entité exclue)
excluded interest, for a taxation year or fiscal period, means an amount of interest or a lease financing amount, if
(a) the amount is paid in, or payable in or in respect of, the year or period by a corporation or partnership (in this definition referred to as the “payer”) to another corporation or partnership (in this definition referred to as the “payee”) in respect of a debt or a lease in respect of a particular property;
(b) throughout the period during which the amount accrued (in this definition referred to as the “relevant period”)
(i) if the amount is interest, the debt is owed by the payer to the payee, or
(ii) if the amount is a lease financing amount, the lease is between the payer and payee;
(c) where the payer is not a financial institution group entity, the payee is not a financial institution group entity;
(d) throughout the relevant period and at the time of payment
(i) each of the payer and payee is
(A) a taxable Canadian corporation, or
(B) a partnership, no member of which is a natural person, a trust or a corporation that is not a taxable Canadian corporation, and
(ii) one of the following conditions is met:
(A) if the payee is a partnership, all the members of the payee (other than another partnership) are eligible group entities in respect of
(I) if the payer is a partnership, each member of the payer (other than another partnership), and
(II) in any other case, the payer, or
(B) if the payee is not a partnership, the payee is an eligible group entity in respect of
(I) if the payer is a partnership, each member of the payer (other than another partnership), and
(II) in any other case, the payer; and
(e) the payer — or, if the payer is a partnership, each member of the payer — and the payee — or, if the payee is a partnership, each member of the payee — file with the Minister, in respect of the year or period of both the payer and the payee, a joint election in writing in prescribed manner under this paragraph that
(i) specifies
(A) the amount of the interest or lease financing amount,
(B) if the amount is interest, the amounts outstanding, at the beginning and end of the relevant period, as or on account of the debt in respect of which this paragraph applies, and
(C) if the amount is a lease financing amount, the fair market value of the particular property at the time the lease began, and
(ii) is filed on or before the earliest of the filing-due date of
(A) the payer for its year,
(B) the payee for its year, and
(C) if the payer or the payee is a partnership, any member of the payer or payee for the member’s taxation year that includes the end of the fiscal period of the payer or the payee, as the case may be. (intérêts exclus)
excluded lease for a taxation year of a taxpayer means a lease
(a) to which the rules in subsection 16.1(1) apply;
(b) that would not be considered to be a lease for a term of more than one year for purposes of paragraph (b) of the definition specified leasing property in subsection 1100(1.11) of the Income Tax Regulations; or
(c) that is in respect of property
(i) that would not be considered, at the time the lease was entered into, to have a fair market value in excess of $25,000 for purposes of paragraph (c) of that definition, or
(ii) that would be considered, at all times in the taxation year, exempt property for purposes of subsection 1100(1.13) of the Income Tax Regulations. (bail exclu)
exempt interest and financing expenses of a taxpayer for a taxation year means the total of all amounts, each of which would, if the description of A in the definition interest and financing expenses were read without reference to “exempt interest and financing expenses”, be included in interest and financing expenses of the taxpayer for that year, and that is incurred in respect of a borrowing or other financing (referred to in this definition as the “borrowing”), if
(a) the taxpayer or a partnership of which the taxpayer is a member entered into an agreement with a public sector authority to design, build and finance — or to design, build, finance, maintain and operate — property that the public sector authority, or another public sector authority, owns or has a leasehold interest in or right to acquire;
(b) the borrowing was entered into in respect of the agreement;
(c) it can reasonably be considered that all or substantially all of the amount is directly or indirectly borne by a public sector authority referred to in paragraph (a); and
(d) the amount was paid or payable to
(i) a person that deals at arm’s length with the taxpayer or the partnership of which the taxpayer is a member, or
(ii) a particular person that does not deal at arm’s length with the taxpayer or the partnership of which the taxpayer is a member if it may reasonably be considered that all or substantially all of the amount paid or payable to the particular person was paid or payable by the particular person to one or more persons that deal at arm’s length with the taxpayer or the partnership of which the taxpayer is a member. (dépenses d’intérêts et de financement exonérées)
financial holding corporation, for a taxation year, means a corporation (other than a corporation described in any of paragraphs (a) to (f) of the definition financial institution group entity) if, throughout the year,
(a) the fair market value of the capital stock of the corporation is primarily attributable to any combination of shares or indebtedness of one or more entities described in any of paragraphs (a) to (f) of the definition financial institution group entity that are controlled by the corporation; or
(b) the corporation is incorporated under the Insurance Companies Act and shares of the capital stock of the corporation are listed on a designated stock exchange. (société de portefeuille financière)
financial institution group entity means a taxpayer that at any time in a taxation year is
(a) a bank;
(b) a credit union;
(c) an insurance corporation;
(d) an entity authorized under the laws of Canada or a province to carry on the business of offering its services as a trustee to the public;
(e) an entity whose principal business consists of one or more of
(i) the lending of money to persons with whom the entity deals at arm’s length,
(ii) the purchasing of debt obligations issued by persons with whom the entity deals at arm’s length, or
(iii) activities which principally give rise to amounts described in paragraphs (a) to (d) of the description of A in the definition interest and financing revenues and are principally conducted with persons with whom the entity deals at arm’s length;
(f) a particular entity that is an eligible group entity in respect of an entity described in any of paragraphs (a) to (e), if the particular entity, or a partnership of which the particular entity is a member and from which the particular entity primarily derives its income,
(i) is authorized under provincial securities laws to engage in, and primarily engages in, the business of
(A) dealing in securities, or
(B) providing portfolio management, investment advice, fund administration or fund management; or
(ii) primarily engages in the business of providing portfolio management, investment advice, fund administration or fund management, including any services connected to those activities, in respect of real estate; or
(g) a particular entity (other than a financial holding corporation) that is an eligible group entity in respect of any entity described in any of paragraphs (a) to (f) if all or substantially all of the activities of the particular entity are ancillary to the activities or business carried on by one or more entities described in paragraphs (a) to (f) that are eligible group entities in respect of the particular entity. (entité du groupe d’institutions financières)
fixed interest commercial trust at any time means a trust resident in Canada, if at that time
(a) the only beneficiaries that may for any reason receive, at or after that time and directly from the trust, any of the income or capital of the trust are beneficiaries that hold fixed interests (as defined in subsection 94(1)) in the trust; and
(b) any of the conditions set out in clauses (h)(ii)(A) to (C) in the definition exempt foreign trust in subsection 94(1) is met. (fiducie commerciale à participation fixe)
foreign accrual property loss of a foreign affiliate for an affiliate taxation year has the meaning assigned by subsection 5903(3) of the Income Tax Regulations. (perte étrangère accumulée, relative à des biens)
interest and financing expenses of a taxpayer for a particular taxation year means the amount determined by the formula
(a) an amount that
(i) is paid in, or payable in or in respect of, a year as, on account of, in lieu of payment of or in satisfaction of, interest (other than excluded interest for the particular year or an amount that is deemed to be interest under subsection 137(4.1)),
(ii) would, in the absence of this section, be deductible (other than under a provision referred to in subparagraph (c)(i)) by the taxpayer in computing its income for the particular year, and
(iii) is not described in any other paragraph in this definition,
(b) an amount that, in the absence of this section and on the assumption that it is not deductible under another provision of this Act (other than any of the provisions referred to in subparagraph (c)(i)), would be deductible in computing the taxpayer’s income for the particular year under any of subparagraphs 20(1)(e)(ii) to (ii.2) and paragraphs 20(1)(e.1) to (f),
(c) the portion of an amount, if
(i) the amount, in the absence of this section, would be deductible in computing the taxpayer’s income for the particular year and is claimed by the taxpayer under paragraph 20(1)(a) or subsection 66(4), 66.1(2) or (3), 66.2(2), 66.21(4), 66.4(2) or 66.7(1), (2), (2.3), (3), (4) or (5), and
(ii) the portion can reasonably be considered to be attributable to an amount paid or payable on or after February 4, 2022 that either
(A) is described in subparagraph (a)(i), or
(B) would otherwise have been deductible in a taxation year under a provision referred to in paragraph (b), but for the application of another provision of this Act,
(d) the portion of an amount that would, in the absence of this section, be deductible in computing the taxpayer’s income for the particular year under subsection 20(16), to the extent that the portion can reasonably be considered to be described in subparagraph (c)(ii),
(e) an amount that is paid or payable by the taxpayer in a year or that is a loss or a capital loss of the taxpayer for a year, as the case may be, under or as a result of an agreement or arrangement, if
(i) the amount would, in the absence of this section
(A) be deductible (other than under subparagraph 20(1)(e)(i)) in computing the taxpayer’s income for the particular year, or
(B) in the case of a capital loss, reduce the amount determined under paragraph 3(b) in respect of the taxpayer or be deductible in computing the taxpayer’s taxable income for the particular year (except to the extent it has already been included under this paragraph for a previous year),
(ii) the agreement or arrangement is entered into as or in relation to a borrowing or other financing that the taxpayer or a person or partnership that does not deal at arm’s length with the taxpayer enters into, whether currently or in the future, and absolutely or contingently, and
(iii) the amount can reasonably be considered to increase (or be part of) the cost of funding with respect to the borrowing or other financing (including as a result of any hedge of the cost of funding or of the borrowing or other financing) of the taxpayer or a person or partnership that does not deal at arm’s length with the taxpayer;
(f) a particular amount that
(i) is in respect of an agreement or arrangement that gives rise to, or can reasonably be expected to give rise to, an amount that
(A) is included in computing a taxpayer’s interest and financing expenses for a taxation year under paragraph (e), or
(B) reduces the taxpayer’s interest and financing expenses for a taxation year under the description of B,
(ii) would, in the absence of this section, be deductible by the taxpayer in computing its income for the particular year,
(iii) is not deductible under any of the provisions listed in paragraph (b), and
(iv) is an expense or fee payable under the agreement or arrangement or an expense that is incurred in contemplation of, in the course of entering into or in relation to, the agreement or arrangement,
(g) a lease financing amount (other than in respect of an excluded lease for the particular year) that
(i) would, in the absence of this section, be deductible by the taxpayer in computing its income for the particular year, and
(ii) is not excluded interest for the particular year,
(h) in respect of the income or loss of a partnership, for a fiscal period that ends in the particular year, from any source or from sources in a particular place, an amount determined by the formula
(i) is deductible by the partnership in computing its income or loss from the source, or the source in a particular place, for a fiscal period, and that would be described in any of paragraphs (a) to (g) if the references to the taxpayer were read as references to the partnership, or
(ii) would be included under paragraph (j) in determining the interest and financing expenses of the partnership for the purposes of determining its income or loss from the source, or the source in a particular place, for the fiscal period, if the partnership were a taxpayer for the purposes of this section,
(i) the portion of an amount that, in the absence of this section, would be deductible in computing the taxpayer’s taxable income for the particular year and is claimed by the taxpayer under paragraph 111(1)(e) in respect of a partnership of which the taxpayer is a member that can reasonably be considered to be attributable to an amount referred to in the description of F in paragraph (h) in respect of a fiscal period of the partnership ending in another taxation year of the taxpayer, or
(j) in respect of a corporation that is a controlled foreign affiliate of the taxpayer at the end of an affiliate taxation year ending in the particular year, an amount determined by the formula
(a) an amount received or receivable (other than as a dividend or in respect of exempt interest and financing expenses) by the taxpayer in a year, or a gain of the taxpayer for a year, as the case may be, under or as a result of an agreement or arrangement to the extent that
(i) the amount is included in computing the taxpayer’s income for the particular year,
(ii) the agreement or arrangement is entered into
(A) as a borrowing or other financing of the taxpayer or of a person or partnership that does not deal at arm’s length with the taxpayer, or
(B) in relation to a borrowing or other financing of the taxpayer or of a person or partnership that does not deal at arm’s length with the taxpayer to hedge the cost of funding or the borrowing or other financing,
(iii) the amount can reasonably be considered to reduce the cost of funding with respect to the borrowing or other financing of the taxpayer or a person or partnership that does not deal at arm’s length with the taxpayer, and
(iv) the amount cannot reasonably be considered to be excluded, reduced, offset or otherwise effectively sheltered from tax under this Part because
(A) an amount is deductible under any of subsections 20(11) to (12.1) and 126(1) and (2), and
(B) an amount is deductible in respect of income or profits tax paid to a country other than Canada that
(I) can reasonably be considered to have been paid in respect of the amount, and
(II) is not a tax substantially similar to tax under subsection 212(1), or
(b) in respect of the income or loss of a partnership, for a fiscal period that ends in the particular year, from any source or from sources in a particular place, an amount determined by the formula
(i) the references to the taxpayer in that paragraph were read as references to the partnership, and
(ii) the reference in subparagraph (a)(i) to “the taxpayer’s income for the particular year” were read as “the partnership’s income or loss from the source, or the source in a particular place, for a fiscal period”, and
interest and financing revenues of a taxpayer for a taxation year means the amount determined by the formula
(a) an amount received or receivable as, on account of, in lieu of payment or in satisfaction of, interest (other than excluded interest for the year, an amount that is deemed to be interest under subsection 137(4.1) or any amount described in any other paragraph in this definition) that is included in computing the taxpayer’s income for the year,
(b) an amount that is included in computing the taxpayer’s income for the year because of subsection 12(9) or section 17.1 (other than any amount described in any other paragraph in this definition),
(c) a fee or similar amount in respect of a guarantee, or similar credit support, provided by the taxpayer for the payment of any amount on a debt obligation owing by another person or partnership that is included in computing the taxpayer’s income for the year (other than any amount described in any other paragraph in this definition),
(d) an amount received or receivable (other than as a dividend) by the taxpayer, or a gain of the taxpayer, as the case may be, under or as a result of an agreement or arrangement, if
(i) the amount is included in computing the taxpayer’s income for the year,
(ii) the agreement or arrangement is entered into as or in relation to a loan or other financing owing to or provided by the taxpayer or a person or partnership that does not deal at arm’s length with the taxpayer, and
(iii) the amount can reasonably be considered to increase (or be part of) the return of the taxpayer or a person or partnership that does not deal at arm’s length with the taxpayer with respect to the loan or other financing (including as a result of any hedge of the return or of the loan or other financing),
(e) a lease financing amount (other than in respect of a lease that would be an excluded lease for the year, if the definition excluded lease were read without regard to its paragraph (a)) that
(i) is included in computing the taxpayer’s income for the year, and
(ii) is not excluded interest for the year,
(f) in respect of the income or loss of a partnership, for a fiscal period that ends in the year, from any source or from sources in a particular place, an amount determined by the formula
(i) is included by the partnership in computing its income or loss from the source, or the source in a particular place, for a fiscal period and that would be described in paragraphs (a) to (e) if the references to the taxpayer were read as references to the partnership, or
(ii) would be included under paragraph (g) in determining the interest and financing revenues of the partnership for the purposes of determining its income or loss from the source, or the source in a particular place, for the fiscal period, if the partnership were a taxpayer for the purposes of this section, and
(g) in respect of a corporation that is a controlled foreign affiliate of the taxpayer at the end of an affiliate taxation year ending in the year, an amount determined by the formula
(a) an amount paid or payable by the taxpayer, or a loss or a capital loss of the taxpayer, as the case may be, under or as a result of an agreement or arrangement, to the extent that
(i) the amount
(A) is deductible in computing the taxpayer’s income for the year, or
(B) in the case of a capital loss, reduces the amount determined under paragraph 3(b) in respect of the taxpayer or is deductible in computing the taxpayer’s taxable income for the year (except to the extent it has already been taken into account in determining an amount under this paragraph for a previous year),
(ii) the agreement or arrangement is entered into
(A) as a loan or other financing owing to or provided by the taxpayer, or a person or partnership that does not deal at arm’s length with the taxpayer, or
(B) in relation to a loan or other financing owing to or provided by the taxpayer, or a person or partnership that does not deal at arm’s length with the taxpayer, to hedge the cost of funding or the borrowing or other financing, and
(iii) the amount can reasonably be considered to reduce the return of the taxpayer, or a person or partnership that does not deal at arm’s length with the taxpayer, in respect of the loan or other financing;
(b) in respect of the income or loss of a partnership, for a fiscal period that ends in the year, from any source or from sources in a particular place, an amount determined by the formula
(i) the references to the taxpayer in that paragraph were read as references to the partnership, and
(ii) the reference in subparagraph (a)(i) to “the taxpayer’s income for the year” were read as “the partnership’s income or loss from the source, or the source in a particular place, for a fiscal period”, and
(c) the portion of any amount included under the description of A (referred to in this paragraph as the “subject amount”) that can reasonably be considered to be excluded, reduced, offset or otherwise effectively sheltered from tax under this Part because an amount is deductible
(i) under any of subsections 20(11) to (12.1) and 126(1) and (2), and
(ii) in respect of income or profits tax paid to a country other than Canada that
(A) can reasonably be considered to have been paid in respect of the subject amount, and
(B) is not a tax substantially similar to tax under subsection 212(1),
(d) the portion of any amount included under A that is not, because of an Act of Parliament, subject to tax under this Part. (revenus d’intérêts et de financement)
lease financing amount means an amount that is the portion of a particular payment in respect of a particular lease entered into by a taxpayer that would be considered to be on account of interest if
(a) the lessee had received a loan at the time the particular lease began and in a principal amount equal to the fair market value at that time of the property that is the subject of the particular lease;
(b) interest had been charged on the principal amount of the loan outstanding from time to time at the rate — determined in accordance with section 4302 of the Income Tax Regulations — in effect at the time described in paragraph (a), compounded semi-annually not in advance; and
(c) the particular payment was a blended payment of principal and interest, calculated in accordance with paragraph (b), on the loan applied firstly on account of interest on principal, secondly on account of interest on unpaid interest and thirdly on account of principal. (montant du crédit-bail)
public sector authority means His Majesty in right of Canada, His Majesty in right of a province, an entity referred to in any of paragraphs 149(1)(c) to (d.6), a hospital authority (as defined in subsection 123(1) of the Excise Tax Act) or a registered charity that is a public college, school authority or university (each as defined in subsection 123(1) of the Excise Tax Act). (administration du secteur public)
ratio of permissible expenses of a taxpayer for a taxation year means the percentage that is
(a) if the taxpayer’s taxation year begins on or after October 1, 2023, and before January 1, 2024, 40%, other than for the purpose of determining the taxpayer’s cumulative unused excess capacity for any taxation year that begins on or after January 1, 2024; and
(b) if the taxpayer’s taxation year begins on or after January 1, 2024, and for the purposes referred to in paragraph (a) for which 40% is not the applicable percentage, 30%. (ratio des dépenses admissibles)
received capacity means an amount of received capacity of a transferee for a taxation year as determined under subsection (4). (capacité reçue)
relevant affiliate interest and financing expenses of a controlled foreign affiliate of a taxpayer (determined as though the definition taxpayer in this subsection did not include the words “or a partnership”) for an affiliate taxation year means, subject to subsection (19), the total of all amounts (other than an amount that is deductible in computing any income or loss of the affiliate that is included in computing the affiliate’s income or loss from an active business because of paragraph 95(2)(a) or an amount that is described in clause 95(2)(a)(ii)(D) and treated as nil for the purposes of determining an amount for A or D in the definition foreign accrual property income in subsection 95(1)), each of which would be the affiliate’s interest and financing expenses (determined without regard to paragraph (j) of the description of A in the definition interest and financing expenses) for the affiliate taxation year for the purposes of determining, in respect of the taxpayer for the affiliate taxation year, each amount referred to in subparagraph 95(2)(f)(i) or (ii), if
(a) the references in the definition interest and financing expenses to “in the absence of this section” were read as references to “in the absence of clause 95(2)(f.11)(ii)(D)”; and
(b) clause 95(2)(f.11)(ii)(A) were read without regard to the reference to subsection 18.2(2). (dépenses d’intérêts et de financement de la société affiliée pertinentes)
relevant affiliate interest and financing revenues of a controlled foreign affiliate of a taxpayer (determined as though the definition taxpayer in this subsection did not include the words “or a partnership”) for an affiliate taxation year means, subject to subsection (19), the total of all amounts (other than an amount included in computing the affiliate’s income or loss from an active business under paragraph 95(2)(a) or (2.44)(b)), each of which would be the affiliate’s interest and financing revenues (determined without regard to paragraph (g) of the description of A in the definition interest and financing revenues) for the affiliate taxation year for the purposes of determining, in respect of the taxpayer for the affiliate taxation year, each amount referred to in subparagraph 95(2)(f)(i) or (ii), if clause 95(2)(f.11)(ii)(A) were read without regard to the reference to subsection 18.2(2). (revenus d’intérêts et de financement de la société affiliée pertinents)
relevant inter-affiliate interest, of a controlled foreign affiliate of a taxpayer for an affiliate taxation year, means an amount of interest to the extent that the amount
(a) is paid or payable by the affiliate to, or received or receivable by the affiliate from, a controlled foreign affiliate (in this definition referred to as the “other affiliate”) of
(i) the taxpayer, or
(ii) a taxpayer that is an eligible group entity in respect of the taxpayer; and
(b) would, in the absence of subsection (19), be included in
(i) if the amount is paid or payable by the affiliate, the affiliate’s relevant affiliate interest and financing expenses for the affiliate taxation year and the other affiliate’s relevant affiliate interest and financing revenues for an affiliate taxation year, or
(ii) if the amount is received or receivable by the affiliate, the affiliate’s relevant affiliate interest and financing revenues for the affiliate taxation year and the other affiliate’s relevant affiliate interest and financing expenses for an affiliate taxation year. (intérêts pertinents entre sociétés affiliées)
special purpose loss corporation, for a taxation year, means a particular corporation that
(a) is an eligible group entity in respect of a financial holding corporation to which the particular corporation has interest paid or payable in the year;
(b) is formed or exists solely for the purpose of generating a loss of the particular corporation; and
(c) would, in the absence of this section, have a loss for the year that is, or will be, utilized by a financial institution group entity that is an eligible group entity in respect of the particular corporation. (société à usage déterminé ayant subi des pertes)
specified participating percentage of a taxpayer, in respect of a controlled foreign affiliate of the taxpayer for an affiliate taxation year, means the percentage that would be the taxpayer’s aggregate participating percentage (as defined in subsection 91(1.3)), determined without regard to clause 95(2)(f.11)(ii)(D), in respect of the affiliate for the affiliate taxation year, if the definition participating percentage in subsection 95(1) were read without reference to
(a) its paragraph (a); and
(b) the portion of its paragraph (b) before its subparagraph (b)(i). (pourcentage de participation déterminé)
specified pre-regime loss of a taxpayer, in respect of a taxation year, means the taxpayer’s non-capital loss for a preceding taxation year, if
(a) the preceding year ends before February 4, 2022;
(b) the taxpayer files with the Minister, in respect of the loss, an election in writing in prescribed manner under this definition;
(c) the election specifies
(i) the loss,
(ii) each amount deducted, in respect of the loss, by the taxpayer under paragraph 111(1)(a) in computing its taxable income
(A) for the year, and
(B) each taxation year that precedes the year, and
(iii) the taxpayer’s adjusted taxable income for the year; and
(d) the election is filed on or before the filing-due date of the taxpayer for the year. (perte antérieure au régime déterminée)
tax-indifferent means a person or partnership that is
(a) a person exempt from tax under section 149;
(b) a non-resident person;
(c) a partnership more than 50% of the fair market value of all interests in which can reasonably be considered to be held, directly or indirectly through one or more trusts or partnerships, by any combination of persons described in paragraph (a) or (b); or
(d) a trust resident in Canada if more than 50% of the fair market value of all interests as beneficiaries under the trust can reasonably be considered to be held, directly or indirectly through one or more trusts or partnerships, by any combination of persons described in paragraph (a) or (b). (indifférent relativement à l’impôt)
taxpayer has the meaning assigned by subsection 248(1), but does not include a natural person or a partnership. (contribuable)
transaction includes an arrangement or event. (opération)
transferred capacity means an amount of transferred capacity of a transferor for a taxation year as determined under subsection (4). (capacité transférée)
End of inserted block
(a) if subsection 18.21(2) applies in respect of the taxpayer for the year, the amount determined in respect of the taxpayer for the year under that subsection, and
(b) in any other case, the amount determined by the formula
(a) if no amount is included in the taxpayer’s interest and financing expenses for the year under paragraph (j) of the description of A of that definition, or under paragraph (h) of the description of A of that definition in respect of a controlled foreign affiliate of a partnership of which the taxpayer is a member, the amount determined for A in that definition for the taxpayer for the year, or
(b) in any other case, the amount that would be determined for A in the definition interest and financing expenses in subsection (1) for the taxpayer for the year if the reference to “the affiliate’s interest and financing expenses” in the definition relevant affiliate interest and financing expenses were read as a reference to “an amount determined for A in the definition interest and financing expenses for the affiliate”.
End of inserted block(a) the total depreciation (as defined in subsection 13(21)) allowed for property of a prescribed class;
(b) the amount the taxpayer may deduct under subsection 66(4);
(c) the cumulative Canadian exploration expense (as defined in subsection 66.1(6));
(d) the cumulative Canadian development expense (as defined in subsection 66.2(5));
(e) the cumulative foreign resource expense (as defined in subsection 66.21(1)) in respect of a country;
(f) the cumulative Canadian oil and gas property expense (as defined in subsection 66.4(5)); and
(g) the amount the taxpayer may deduct under subsections 66.7(1), (2) or (2.3) to (5).
End of inserted block(a) the taxation year of the transferor ends in the taxation year of the transferee;
(b) each of the transferor and the transferee is
(i) a taxable Canadian corporation or a fixed interest commercial trust throughout its taxation year, and
(ii) an eligible group entity in respect of the other at the end of its taxation year;
(c) where the transferor is a financial institution group entity or a financial holding corporation for its taxation year, the transferee is, for its taxation year,
(i) a financial institution group entity,
(ii) a financial holding corporation, or
(iii) a special purpose loss corporation;
(d) the election or amended election
(i) specifies the amount of the transferred capacity, and
(ii) is filed with the Minister by the transferor
(A) on or before the later of the filing-due date of
(I) the transferor for its taxation year, and
(II) the transferee for its taxation year, or
(B) on or before the day that is 90 days after the day of sending of
(I) a notice of assessment of tax payable under this Part by the transferor or the transferee for their respective taxation years, or
(II) a notification that no tax is payable under this Part by the transferor or the transferee for their respective taxation years;
(e) the total of all amounts each of which would, if this subsection were read without reference to this paragraph, be an amount of transferred capacity of the transferor for its taxation year in respect of any transferee, does not exceed the transferor’s cumulative unused excess capacity for the year;
(f) if the transferee is a financial holding corporation and the transferor is a financial institution group entity, it is the case that
(i) a financial institution group entity, or
(ii) a special purpose loss corporation, if the amount gives rise to a loss of the special purpose loss corporation that is, or will be, utilized solely by a financial institution group entity, and
(i) received capacity of the financial holding corporation for its taxation year, and
(ii) transferred capacity of a financial institution group entity for one of its taxation years;
(g) if the transferee is a special purpose loss corporation and the transferor is a financial institution group entity, it is the case that
(i) would, in the absence of this section, be deductible in computing the income of the special purpose loss corporation for its taxation year,
(ii) is paid or payable to a financial holding corporation,
(iii) meets the conditions set out in paragraphs (a) to (d) of the definition excluded interest, and
(iv) would, in the absence of this section, give rise to a loss that is, or will be, utilized solely by a financial institution group entity, and
(i) received capacity of the special purpose loss corporation for its taxation year, and
(ii) transferred capacity of a financial institution group entity for one of its taxation years;
(h) an amended election has not been filed in accordance with this section;
(i) where the election is an amended election,
(i) the following conditions are met:
(A) in the absence of any assessment, the condition set out in paragraph (e) would be met in respect of a prior election under this subsection made by the transferor and transferee for their respective taxation years, and
(B) subsection (9) does not apply to a tax benefit in respect of a prior election for the taxation year of the transferor or transferee, or
(ii) the Minister grants permission to amend the prior election under subsection (5); and
(j) the transferee files an information return in accordance with subsection (6) for the calendar year in which the transferee’s taxation year ends.
End of inserted block(a) the transferor and the transferee demonstrate to the satisfaction of the Minister that
(i) the transferor, the transferee and each other eligible group entity in respect of the transferor and transferee made reasonable efforts to determine all amounts that may reasonably be considered relevant in making the election, and
(ii) the election or amended election, as the case may be, is filed as soon as circumstances permit; and
(b) in the opinion of the Minister, the circumstances are such that it would be just and equitable to permit the election to be made or amended.
End of inserted block(a) each such election; and
(b) each election filed under subsection (4) for a taxation year ending in the calendar year, by any other transferee that is an eligible group entity in respect of the particular transferee at the end of the other transferee’s taxation year.
End of inserted block(a) an information return under subsection (6) is filed for the calendar year by any other taxpayer (in this subsection referred to as the “designated filer” in respect of the taxpayer for the year) that is an eligible group entity in respect of the taxpayer at the end of the taxpayer’s taxation year ending in the calendar year; and
(b) the taxpayer jointly elects, with each other transferee described in paragraph (6)(b), to designate under this paragraph the designated filer to be a designated filer in respect of the taxpayer and each other transferee for the calendar year.
End of inserted block(a) where the property was owned by the transferee immediately before that time,
(i) the transferee is deemed to have disposed of the property at that time for proceeds equal to the fair market value of the property at that time, and
(ii) no amount may be deducted in computing the transferee’s income as a consequence of the transfer of the property, except any amount arising as a consequence of subparagraph (i);
(b) the cost at which the property was acquired by the transferor at that time is deemed to be equal to the fair market value of the property at that time; and
(c) the transferor is not required to add an amount in computing income solely because of the acquisition at that time of the property.
End of inserted block(a) a person or partnership that is (or is deemed by this paragraph to be) a member of a particular partnership that is a member of another partnership is deemed to be a member of the other partnership; and
(b) a person’s share of the income or loss of a partnership includes the person’s direct or indirect, through one or more other partnerships, share of that income or loss.
End of inserted block(a) an amount in respect of the particular amount is deductible in computing the foreign accrual property income of a corporation that is a foreign affiliate, but not a controlled foreign affiliate, of the taxpayer or of a person or partnership that does not deal at arm’s length with the taxpayer;
(b) the particular amount is received or receivable, directly or indirectly and in whole or in part, by the taxpayer, or a partnership of which it is a member, from
(i) a person that does not deal at arm’s length with the taxpayer and that is
(A) an excluded entity,
(B) a natural person, or
(C) if the taxpayer is not a financial institution group entity or a financial holding corporation, a financial institution group entity or a financial holding corporation, or
(ii) a partnership of which a person described in subparagraph (i) is a member; or
(c) one of the main purposes of a transaction or series of transactions is to include the particular amount under the description of A in the definition interest and financing revenues, or the description of B in the definition interest and financing expenses, in computing the income or loss of the taxpayer for a taxation year and
(i) the transaction or series results in an amount that
(A) is not included in the description of B in the definition interest and financing revenues, or the description of A in the definition interest and financing expenses, in computing the income or loss of the taxpayer, or of a person not dealing at arm’s length with the taxpayer, for a taxation year, and
(B) is deductible in computing the income of loss for a taxation year of the taxpayer or a person or partnership not dealing at arm’s length with the taxpayer, or
(ii) it can reasonably be considered that, in the absence of the transaction or series, the particular amount or an amount for which the particular amount was substituted
(A) would have been included in computing the income or loss for a taxation year (other than as a dividend) of the taxpayer, or a person or partnership not dealing at arm’s length with the taxpayer, and
(B) would not have been included under the description of A in the definition interest and financing revenues, or the description of B in the definition interest and financing expenses, in computing the income or loss of the taxpayer or a person not dealing at arm’s length with the taxpayer.
End of inserted block(a) any portion of the interest and financing expenses of the taxpayer for the year is paid or payable by the taxpayer or any eligible group entity in respect of the taxpayer to the person or partnership as part of a transaction or series of transactions; and
(b) it can reasonably be considered that one of the main purposes of the transaction or series is to avoid that portion of the interest and financing expenses being paid or payable to a person or partnership that is tax-indifferent and does not deal at arm’s length with the taxpayer or any eligible group entity in respect of the taxpayer.
End of inserted block(a) despite subsection 104(1), a reference to a person that is a trust does not include a reference to the trustee or other persons that own or control the trust property; and
(b) a corporation or a trust is deemed not to be related to a taxpayer where the corporation or trust would, but for this paragraph, be related to the taxpayer solely because the taxpayer is controlled by His Majesty in right of Canada, His Majesty in right of a province or an entity referred to in any of paragraphs 149(1)(c) to (d.6).
End of inserted block(a) the taxpayer is controlled by His Majesty in right of Canada, His Majesty in right of a province or an entity referred to in any of paragraphs 149(1)(c) to (d.6); or
(b) if the corporation or trust is a registered charity or a non-profit organization with whom the taxpayer deals at arm’s length, the corporation or trust is a majority-interest beneficiary (within the meaning of subsection 251.1(3)) of the taxpayer.
End of inserted block(a) the amount included, in respect of the relevant inter-affiliate interest, in the payer affiliate’s relevant affiliate interest and financing expenses for the payer affiliate year is the lesser of
(i) the relevant inter-affiliate interest, and
(ii) the amount determined by the formula
(A) the taxpayer, or
(B) another taxpayer that is an eligible group entity in respect of the taxpayer, and
(A) the taxpayer, or
(B) another taxpayer that is an eligible group entity in respect of the taxpayer, and
(A) the relevant inter-affiliate interest, and
(B) the amount determined by the formula
(b) the amount included, in respect of the relevant inter-affiliate interest, in the recipient affiliate’s relevant affiliate interest and financing revenues for the recipient affiliate year is the lesser of
(i) the amount referred to in E, and
(ii) the amount determined by the formula
acceptable accounting standards means International Financial Reporting Standards and the generally accepted accounting principles of
(a) Canada;
(b) Australia;
(c) Brazil;
(d) member states of the European Union;
(e) member states of the European Economic Area;
(f) Hong Kong (China);
(g) Japan;
(h) Mexico;
(i) New Zealand;
(j) the People’s Republic of China;
(k) the Republic of India;
(l) the Republic of Korea;
(m) Singapore;
(n) Switzerland;
(o) the United Kingdom; and
(p) the United States. (principes comptables acceptables)
consolidated financial statements means financial statements prepared in accordance with a relevant acceptable accounting standard in which the assets, liabilities, income, expenses and cash flows of two or more entities are presented as those of a single economic entity and, for greater certainty, the financial statements include the notes to the financial statements. (états financiers consolidés)
consolidated group means two or more entities, other than an equity-accounted entity but including an ultimate parent, (each such entity referred to in this section as a “member of the consolidated group”) in respect of which consolidated financial statements are required to be prepared for financial reporting purposes or would be so required if the entities were subject to International Financial Reporting Standards. (groupe consolidé)
equity-accounted entity means an entity the net income or loss of which is included in the consolidated financial statements of a consolidated group under the equity method of accounting. (entité comptabilisée à la valeur de consolidation)
equity interest means
(a) a share of the capital stock of a corporation;
(b) an interest as a beneficiary under a trust;
(c) an interest as a member of a partnership; or
(d) any similar interest in respect of any entity. (participation au capital)
fair value amount means any amount reflected in the net income or net loss reported in the consolidated financial statements of a consolidated group for a relevant period where
(a) the carrying value of any asset or liability of the consolidated group is measured using the fair value method of accounting; and
(b) the amount reflects a change in the carrying value of the asset or liability during the relevant period and is included in either the description of C or H in the definition group adjusted net book income. (montant de la juste valeur)
group adjusted net book income, of a consolidated group for a relevant period, means the amount determined by the formula
(a) a depreciation or amortization expense in respect of an asset,
(b) a charge in respect of the impairment or write-off of an asset referred to in paragraph (a),
(c) a loss on the disposal of an asset referred to in paragraph (a),
(d) if an election is made under subsection (4) and the net fair value amount for the period is negative, the absolute value of the net fair value amount, and
(e) an expense, charge, deduction or loss that is similar to any of those referred to in paragraphs (a) to (d), and
group net interest expense, of a consolidated group for a relevant period, means the amount determined by the formula
group ratio, of a consolidated group for a relevant period, means
(a) except where paragraph (b) applies, the percentage determined by the formula
(b) if the group adjusted net book income of the consolidated group for the relevant period is nil, nil. (ratio de groupe)
net fair value amount means the positive or negative amount that is the total of all amounts, each of which is a positive or negative fair value amount in the consolidated financial statements of the consolidated group for a relevant period. (montant de la juste valeur net)
relevant period means a period in respect of which the consolidated financial statements of a consolidated group are presented. (période pertinente)
specified interest expense, of a consolidated group for a relevant period, means the amount determined by the formula
(a) an amount of interest expense used in determining the amounts reported in the consolidated financial statements of the consolidated group for the relevant period,
(b) an amount of capitalized interest used in determining the amounts reported in those statements,
(c) the amount of a guarantee fee, standby charge, arrangement fee or similar fee paid or payable that is used in determining the amounts reported in those statements and that is not included in paragraph (a) or (b), or
(d) an amount referred to in any of paragraphs (a) to (c) that is included in the determination of the net income or loss of an equity-accounted entity, to the extent of the consolidated group’s share of that net income or loss; and
specified interest income, of a consolidated group for a relevant period, means the amount determined by the formula
(a) an amount of interest income used in determining the amounts reported in the consolidated financial statements of the consolidated group for the relevant period,
(b) the amount of a guarantee fee, standby charge, arrangement fee or similar fee received or receivable that is used in determining the amounts reported in those statements and that is not included in paragraph (a), or
(c) an amount referred to in paragraph (a) or (b) that is included in the determination of the net income or loss of an equity-accounted entity, to the extent of the consolidated group’s share of that income or loss; and
specified non-member, of a consolidated group for a relevant period, means a particular person or partnership that is not a member of the consolidated group and that, at any time in the period,
(a) does not deal at arm’s length with a member of the group;
(b) alone or together with persons or partnerships with whom the particular person or partnership does not deal at arm’s length owns, or has the right to acquire, one or more equity interests in a member of the group that
(i) provide 25% or more of the votes that could be cast at an annual meeting of the shareholders of the member, if the member is a corporation, or
(ii) have 25% or more of the fair market value of all equity interests in the member; or
(c) is a person or partnership in respect of which a member of the group — alone or together with persons or partnerships with whom the member does not deal at arm’s length — owns, or has the right to acquire, one or more equity interests in the particular person or partnership that
(i) provide 25% or more of the votes that could be cast at an annual meeting of the shareholders of the particular person, if the particular person is a corporation, or
(ii) have 25% or more of the fair market value of all equity interests in the particular person or partnership. (non-membre déterminé)
ultimate parent means a particular entity if
(a) the particular entity is not His Majesty in right of Canada, His Majesty in right of a province or an entity referred to in any of paragraphs 149(1)(c) to (d.6);
(b) it holds directly or indirectly an interest in one or more other entities in respect of which it is required to prepare consolidated financial statements for financial reporting purposes, or would be so required if it was subject to International Financial Reporting Standards; and
(c) no entity (other than an entity described in paragraph (a)) holds, directly or indirectly, in the particular entity an interest that is described in paragraph (b). (mère ultime)
End of inserted block(a) the consolidated financial statements of the consolidated group for the relevant period are audited financial statements;
(b) the election or amended election
(i) specifies the amount allocated to each Canadian group member for each relevant taxation year, and
(ii) is filed with the Minister by the taxpayer or a Canadian group member of the taxpayer on or before
(A) the latest filing-due date of a Canadian group member for a relevant taxation year, or
(B) the day that is 90 days after the sending of
(I) a notice of assessment of tax payable under this Part by a Canadian group member for a relevant taxation year, or
(II) a notification that no tax is payable under this Part by a Canadian group member for a relevant taxation year;
(c) the total of all amounts, each of which is an amount allocated to a Canadian group member for a relevant taxation year, does not exceed the least of
(i) the total of all amounts in respect of a member each of which is determined by the formula
(ii) the group net interest expense of the consolidated group in respect of the relevant period, and
(iii) the total of all amounts, each of which would, in the absence of section 257, be the adjusted taxable income of a member for each relevant taxation year;
(d) an amended election has not been filed in accordance with this section; and
(e) where the election is an amended election,
(i) the following conditions are met:
(A) in the absence of any assessment, the condition set out in paragraph (c) would be met in respect of a prior election under this subsection made by the Canadian group members for a relevant taxation year under this subsection, and
(B) subsection 18.2(9) does not apply to a tax benefit in respect of a prior election for the relevant period, or
(ii) the Minister grants permission to amend the prior election under subsection (3).
End of inserted block(a) the Canadian group members demonstrate to the satisfaction of the Minister that
(i) they made reasonable efforts to determine all amounts that may reasonably be considered relevant in making the election, and
(ii) the election or amended election, as the case may be, is filed as soon as circumstances permit; and
(b) in the opinion of the Minister, the circumstances are such that it would be just and equitable to permit the election to be made, amended or revoked.
End of inserted block(a) no amounts may be included in paragraph (d) of the description of F or in the description of K in the definition group adjusted net book income for any relevant period unless the Canadian group members jointly elect, for the first relevant taxation year in respect of which the Canadian group members jointly elect under subsection (2), to include net fair value amounts in calculating group adjusted net book income for the relevant period in which the first relevant taxation year ends;
(b) if an election to include net fair value amounts in the calculation is not made in the first relevant taxation year, each Canadian group member is deemed not to have so elected in that taxation year and any subsequent taxation year; and
(c) if an election to include net fair value amounts in the calculation is made in the first relevant taxation year, each Canadian group member is deemed to have so elected in that taxation year and any subsequent taxation year.
End of inserted block(a) the taxpayer is deemed to be an eligible group entity in respect of itself;
(b) the taxpayer is deemed to be
(i) a member of a consolidated group that comprises only itself, and
(ii) the ultimate parent of the group; and
(c) the taxpayer’s financial statements are deemed to be consolidated financial statements.
End of inserted block(2) Subsection (1) applies in respect of taxation years of a taxpayer that begin on or after October 1, 2023, except that
(a) sections 18.2 and 18.21 of the Act, as enacted by subsection (1), also apply in respect of a taxation year of a taxpayer that begins before, and ends after, October 1, 2023 if
(i) any of the taxpayer’s three immediately preceding taxation years was, because of a transaction or event or a series of transactions or events, shorter than it would have been in the absence of that transaction, event or series, and
(ii) it can reasonably be considered that one of the purposes of the transaction, event or series was to defer the application of section 18.2 or 18.21 of the Act, as enacted by subsection (1), or the application of paragraph 12(1)(l.2) of the Act, as enacted by subsection 2(1), to the taxpayer or to increase an amount of excess capacity of any taxpayer determined under paragraphs (c) and (d);
(b) paragraph (a) of the definition ratio of permissible expenses in subsection 18.2(1) of the Act, as enacted by subsection (1), is to be read, in respect of a taxpayer, as if its reference to “40%” were a reference to “30%” if
(i) any taxation year of the taxpayer that begins after 2022 but before 2024 is, because of a transaction or event or a series of transactions or events, shorter than it would have been in the absence of that transaction, event or series, and
(ii) it can reasonably be considered that one of the purposes of the transaction, event or series was to defer the application of paragraph (b) of that definition to the taxpayer;
(c) for the purpose of determining the cumulative unused excess capacity of a taxpayer that is a corporation or a fixed interest commercial trust for a particular taxation year, the taxpayer’s excess capacity for each of the three taxation years (in this paragraph and paragraph (d), each referred to as a “pre-regime year”) immediately preceding the first taxation year of the taxpayer in respect of which subsection (1) applies (in this paragraph and paragraph (d) referred to as the “first regime year” of the taxpayer) is deemed to be nil unless
(i) the taxpayer and each corporation or fixed interest commercial trust that is an eligible group entity in respect of the taxpayer at the end of the first regime year (in this subsection referred to as an “eligible pre-regime group entity”) jointly elect in prescribed form to have paragraph (d) apply in respect of the taxpayer,
(ii) the election or amended election is filed with the Minister by the taxpayer or by an eligible pre-regime group entity of the taxpayer on or before the earliest filing-due date for the first regime year of the taxpayer or of any eligible pre-regime group entity of the taxpayer, and
(iii) in the election the taxpayer and the eligible pre-regime group entities
(A) allocate to the taxpayer or eligible pre-regime group entities in respect of the taxpayer, for the purpose of determining the taxpayer’s cumulative unused excess capacity for the particular taxation year and any other taxation year in which the taxpayer’s ratio of permissible expenses is the same as in the particular year, one or more portions of the group net excess capacity (as defined in subparagraph (d)(vi)) for the pre-regime years that is determined for that purpose, and
(B) set out, for the taxpayer and each eligible pre-regime group entity, the excess interest (as defined in subparagraph (d)(ii)) for each pre-regime year, the excess capacity otherwise determined (as defined in subparagraph (d)(iii)) for each pre-regime year and the net excess capacity (as defined in subparagraph (d)(v)) for the pre-regime years; and
(d) if the conditions set out in subparagraphs (c)(i) to (iii) are satisfied, for the purpose of determining the taxpayer’s cumulative unused excess capacity for a particular taxation year and any other taxation year in which the taxpayer’s ratio of permissible expenses is the same as in the particular year, the taxpayer’s excess capacity for a pre-regime year (other than for the purposes of this paragraph) is determined in accordance with the following rules:
(i) for the purposes of this paragraph, the determination of whether a corporation or a fixed interest commercial trust is an eligible pre-regime group entity in respect of the taxpayer is to be made at the end of the taxpayer’s first regime year,
(ii) the excess interest, of the taxpayer or an eligible pre-regime group entity in respect of the taxpayer, for a pre-regime year, means the amount that would be determined for the pre-regime year under paragraph (b) of the definition absorbed capacity in subsection 18.2(1) of the Act, as enacted by subsection (1),
(iii) the excess capacity otherwise determined means the amount that would be the excess capacity of the taxpayer or an eligible pre-regime group entity in respect of the taxpayer for a pre-regime year, if that amount were determined under the definition excess capacity in subsection 18.2(1) of the Act, as enacted by subsection (1),
(iv) for the purposes of this paragraph, if the taxpayer or an eligible pre-regime group entity in respect of the taxpayer was subject to a loss restriction event at the beginning of any of its pre-regime years, its excess capacity otherwise determined and its excess interest for any pre-regime year that precedes that year are deemed to be nil,
(v) the net excess capacity of a taxpayer for its pre-regime years means the amount, if any, by which the total of all amounts each of which is the excess capacity otherwise determined of the taxpayer for a pre-regime year exceeds the total of all amounts each of which is the excess interest of the taxpayer for a pre-regime year,
(vi) the group net excess capacity for the pre-regime years means the amount, if any, by which the total of all amounts each of which is the excess capacity otherwise determined of the taxpayer or an eligible pre-regime group entity in respect of the taxpayer (other than a taxpayer or eligible pre-regime group entity that is, at any time in a pre-regime year, a financial institution group entity or a person exempt from tax under Part I of the Act) for a pre-regime year exceeds the total of all amounts each of which is the excess interest of the taxpayer or an eligible pre-regime group entity (other than a taxpayer or eligible pre-regime group entity that is, at any time in a pre-regime year, a financial institution group entity or a person exempt from tax under Part I of the Act) for a pre-regime year,
(vii) for the purposes of determining the excess capacity otherwise determined or the excess interest of the taxpayer or an eligible pre-regime group entity for a pre-regime year, the net excess capacity of the taxpayer or an eligible pre-regime group entity for its pre-regime years and the group net excess capacity for pre-regime years,
(A) the ratio of permissible expenses is the same as the taxpayer’s ratio of permissible expenses for the particular year, and
(B) if it is the case that, in respect of a pre-regime year, the conditions set out in subsection 18.21(2) of the Act, as enacted by subsection (1), would be met in respect of the taxpayer and each eligible pre-regime group entity that is a member of the same consolidated group in respect of the year — if the reference in subsection 18.21(2) to the “filing–due date of a Canadian group member for the year” were read as a reference to the “filing-due date of any Canadian group member for its first regime year” — then subsection 18.21(2) of the Act, as enacted by subsection (1), applies in respect of the taxpayer and each such eligible pre-regime group entity for the pre-regime year,
(viii) the taxpayer’s excess capacity for a pre-regime year is deemed to be
(A) if the taxpayer’s net excess capacity for its pre-regime years is not a positive amount, nil, and
(B) in any other case, the lesser of
(I) the taxpayer’s excess capacity otherwise determined for the pre-regime year, and
(II) the portion, if any, of the group net excess capacity allocated to the taxpayer for the year in the joint election under paragraph (c), and
(ix) notwithstanding subparagraph (viii), the taxpayer’s excess capacity for each pre-regime year is deemed to be nil if
(A) the total of all amounts each of which is a portion of the group net excess capacity that is allocated to the taxpayer or an eligible pre-regime group entity in respect of the taxpayer for a pre-regime year in the joint election under paragraph (c) is greater than the group net excess capacity, or
(B) the total of all amounts each of which is a portion of the group net excess capacity that is allocated to the taxpayer for a pre-regime year under the joint election is greater than the taxpayer’s net excess capacity for its pre-regime years;
(e) an amended election is deemed to be filed in accordance with subparagraph (c)(ii) if
(i) as a result of an assessment or reassessment, the amount of excess interest or excess capacity otherwise determined of the taxpayer, or any eligible pre-regime group entity (other than a financial institution group entity or a person exempt from tax under Part I of the Act) in respect of the taxpayer, is different from the amount reported by the taxpayer or eligible group entity in a prior election under this subsection,
(ii) in the absence of the assessment or reassessment, the taxpayer’s excess capacity for each pre-regime year would not be deemed to be nil under subparagraph (d)(ix) based on a prior election, and
(iii) the amended election is filed within 90 days of the reassessment;
(f) if an election or amended election has been made under paragraph (c), the Minister shall, despite subsections 152(4) and (5) of the Act, assess or reassess the tax, interest or penalties payable under the Act by any taxpayer for any relevant taxation year as is necessary to give effect to the election or amended election; and
(g) despite paragraphs (c) and (e), the Minister may accept an election or amended election if
(i) the taxpayer and the eligible pre-regime group entities in respect of the taxpayer demonstrate to the satisfaction of the Minister that
(A) they made reasonable efforts to determine all amounts that may reasonably be considered relevant in making the election or amended election, and
(B) the election or amended election, as the case may be, is filed as soon as circumstances permit, and
(ii) in the opinion of the Minister, the circumstances are such that it would be just and equitable to permit the election to be made or amended.
Canadian ordinary income, of a taxpayer for a taxation year in respect of a payment, means an amount that is
(a) if the taxpayer is not a partnership, included in respect of the payment in computing, in the case of a taxpayer resident in Canada, the income of the taxpayer for the purposes of this Part — or, in the case of a taxpayer that is a non-resident person, the taxable income earned in Canada of the taxpayer — for the year, except to the extent that
(i) the amount is included in the Canadian ordinary income of any taxpayer under paragraph (b) or (c),
(ii) the taxpayer is entitled to a deduction under section 112 or 113 in respect of the payment, or
(iii) the amount can otherwise reasonably be considered to be excluded, reduced, offset or otherwise effectively sheltered from tax under this Part by reason of any exemption, exclusion, deduction, credit (other than a credit for a tax substantially similar to tax under Part XIII) or other form of relief under this Act that
(A) applies specifically in respect of all or a portion of the amount and not in computing income generally, or
(B) arises in respect of the payment;
(b) if the taxpayer is a partnership, determined by the formula
(i) is included in the Canadian ordinary income of any taxpayer under paragraph (c), or
(ii) can reasonably be considered to be excluded, reduced, offset or otherwise sheltered by any reason described in subparagraph (a)(iii),
(i) the share of a member of the partnership that is a person resident in Canada, or
(ii) the share of a member of the partnership that is a non-resident person to the extent it is included in computing the non-resident person’s taxable income earned in Canada,
(c) determined by the formula
(i) if the taxpayer is a partnership, the amount determined by the formula
(ii) in any other case, 1. (revenu ordinaire canadien)
controlled foreign company tax regime means a set of provisions under the tax laws of a particular country other than Canada under which a direct or indirect shareholder of an entity that is located in a country other than the particular country is subject to current taxation in respect of its share of all or part of the income earned by the entity, irrespective of whether that income is distributed currently to the shareholder. (régime fiscal des sociétés étrangères contrôlées)
deductible, in relation to an amount in respect of a payment, in computing relevant foreign income or profits, includes any relief that arises in respect of the payment and is equivalent in effect to a deduction, including
(a) an exemption or exclusion in computing the relevant foreign income or profits; and
(b) a refund of, or credit that can be applied to reduce or offset, income or profits tax paid or payable to a government of a country other than Canada in respect of the relevant foreign income or profits. (déductible)
entity has the same meaning as in subsection 95(1). (entité)
equity interest means any of the following:
(a) a share of the capital stock of a corporation;
(b) an interest as a beneficiary under a trust;
(c) an interest as a member of a partnership; or
(d) any similar interest in respect of any entity. (participation au capital)
equity or financing return means a payment that can reasonably be considered to be in respect of, or determined by reference to,
(a) revenue, profit, cash flow, commodity price or any other similar criterion;
(b) dividends paid or payable to shareholders of any class of shares of the capital stock of a corporation, or income or capital paid or payable to any member of a partnership or beneficiary under a trust, or any other distribution in respect of any entity; or
(c) an amount that is, or is on account of, in lieu of payment of or in satisfaction of, interest, or that is otherwise compensation for the use of money. (rendement financier ou de capitaux propres)
exempt dealer compensation payment means a payment that
(a) is a dealer compensation payment (as defined in subsection 260(1));
(b) is received by a registered securities dealer resident in Canada, as compensation for a taxable dividend paid on a share of the capital stock of a public corporation, from a non-resident corporation (referred to in this definition as the “affiliate”) that, at the time the payment is received,
(i) is a controlled foreign affiliate of
(A) the registered securities dealer, or
(B) another taxpayer that does not deal at arm’s length with the registered securities dealer,
(ii) has a substantial market presence in a particular country other than Canada,
(iii) makes the payment in the ordinary course of a business of trading in securities, if
(A) the business is carried on by the affiliate as a foreign bank (as defined in subsection 95(1)), a trust company, a credit union, an insurance corporation or a trader or dealer in securities,
(B) the activities of the business are regulated under the laws of
(I) the particular country,
(II) another country under the laws of which the affiliate is governed and any of exists, was (unless the affiliate was continued in any jurisdiction) formed or organized, or was last continued and of each country in which the business is carried on through a permanent establishment, or
(III) if the affiliate is related to a corporation, another country under the laws of which the related corporation is governed and any of exists, was (unless the related corporation was continued in any jurisdiction) formed or organized, or was last continued, if those regulating laws are recognized under the laws of the country in which the business is principally carried on and all of those countries are members of the European Union, and
(iv) conducts the business, directly or indirectly,
(A) principally with persons that
(I) deal at arm’s length with the affiliate, and
(II) are resident, or carry on business through a permanent establishment, in the particular country, and
(B) in competition with other entities that
(I) deal at arm’s length with the affiliate, and
(II) have a substantial market presence in the particular country; and
(c) does not arise under, or in connection with, a structured arrangement. (paiement compensatoire (courtier) exonéré)
financial instrument means
(a) a debt;
(b) an equity interest or any right that may reasonably be considered to replicate a right to participate in profits or gain of any entity; or
(c) any other arrangement that gives rise to an equity or financing return. (instrument financier)
foreign expense restriction rule means a provision under the tax laws of a country other than Canada that can reasonably be considered to
(a) have an effect, or be intended to have an effect, that is substantially similar to that of subsection 18(4); or
(b) have been enacted or otherwise brought into effect by the country with the intention of implementing, in whole or in part,
(i) any of the recommendations set out in Limiting Base Erosion Involving Interest Deductions and Other Financial Payments, Action 4 – 2016 Update, published by the Organisation for Economic Co-operation and Development, or
(ii) the Global Anti-Base Erosion Model Rules set out in Tax Challenges Arising from the Digitalisation of the Economy – Global Anti-Base Erosion Model Rules (Pillar Two), published by the Organisation for Economic Co-operation and Development. (règle étrangère de restriction des dépenses)
foreign hybrid mismatch rule means a provision, under the tax laws of a country other than Canada, that can reasonably be considered to
(a) have an effect that is substantially similar to that of a provision under this section, section 12.7 or subsection 113(5); or
(b) have been enacted or otherwise brought into effect by the country with the intention of implementing, in whole or in part, Neutralising the Effects of Hybrid Mismatch Arrangements, Action 2 – 2015 Final Report published by the Organisation for Economic Co-operation and Development, as amended from time to time. (règle étrangère d’asymétrie hybride)
foreign ordinary income, of an entity for a foreign taxation year in respect of a payment, means an amount that is determined by the formula
(a) if the relevant amount is included in computing relevant foreign income or profits in respect of which the entity is subject to an income or profits tax that is charged at a nil rate, the relevant amount, or
(b) in any other case, nil;
(a) applies specifically in respect of all or a portion of the relevant amount and not in computing the entity’s relevant foreign income or profits in general, or
(b) arises in respect of the payment;
(i) meets the following conditions:
(A) is repaid or repayable in respect of income or profits tax paid or payable by the entity to the government of a country other than Canada in respect of the relevant foreign income or profits for the year, and
(B) is not repaid or repayable because a loss is used to reduce or offset the relevant foreign income or profits for the year, or
(ii) is paid or payable in respect of a credit that can reasonably be considered to reduce or offset, directly or indirectly, the income or profits tax referred to in clause (i)(A), and
foreign taxation year of an entity means the period for which the accounts of the entity have been ordinarily made up for the purpose of computing relevant foreign income or profits of the entity, but no such period may exceed 53 weeks. (année d’imposition étrangère)
hybrid mismatch amount, in respect of a payment, means
(a) if the payment arises under a hybrid financial instrument arrangement, the amount of the hybrid financial instrument mismatch in respect of the payment;
(b) if the payment arises under a hybrid transfer arrangement, the amount of the hybrid transfer mismatch in respect of the payment; or
(c) if the payment arises under a substitute payment arrangement, the amount of the substitute payment mismatch in respect of the payment. (montant de l’asymétrie hybride)
hybrid mismatch arrangement under which a payment arises means
(a) a hybrid financial instrument arrangement under which the payment arises;
(b) a hybrid transfer arrangement under which the payment arises; or
(c) a substitute payment arrangement under which the payment arises. (dispositif hybride)
payer of a payment includes any entity that has an obligation to pay, credit or confer, either immediately or in the future and either absolutely or contingently, the payment to an entity. (payeur)
payment includes any amount or benefit that any entity has an obligation to pay, credit or confer, either immediately or in the future and either absolutely or contingently, to an entity. (paiement)
recipient of a payment includes any entity that has an entitlement to be paid, credited or conferred, either immediately or in the future and either absolutely or contingently, the payment by an entity. (bénéficiaire)
relevant foreign income or profits of an entity means income or profits in respect of which the entity is subject to an income or profits tax that is imposed by the government of a country other than Canada. (revenus ou bénéfices étrangers pertinents)
specified entity, in respect of another entity at any time, means a particular entity if, taking into consideration the rules in subsection (17),
(a) the particular entity at that time, either alone or together with entities with whom the particular entity does not deal at arm’s length, owns directly or indirectly equity interests in the other entity that
(i) provide 25% or more of the votes that could be cast at an annual meeting of the shareholders, if the other entity is a corporation, or
(ii) have 25% or more of the fair market value of all equity interests in the other entity;
(b) the condition in paragraph (a) would be satisfied if the references in that paragraph to “particular entity” were read as references to “other entity” and the references to “other entity” were read as references to “particular entity”; or
(c) a third entity at that time, either alone or together with entities with which the third entity does not deal at arm’s length, owns directly or indirectly equity interests in the particular entity and the other entity that, in respect of each of the particular entity and the other entity,
(i) provide 25% or more of the votes that could be cast at an annual meeting of the shareholders, if the particular entity or the other entity, as the case may be, is a corporation, or
(ii) have 25% or more of the fair market value of all equity interests in the particular entity or the other entity, as the case may be. (entité déterminée)
specified minimum tax regime means
(a) any provisions in respect of global intangible low-taxed income (as defined in section 951A of the Internal Revenue Code of 1986 of the United States, as amended from time to time);
(b) any provisions under the tax laws of a country that can reasonably be considered to have been enacted or otherwise brought into effect by the country with the intention of implementing, in whole or in part, the Global Anti-Base Erosion Model Rules set out in Tax Challenges Arising from the Digitalisation of the Economy – Global Anti-Base Erosion Model Rules (Pillar Two), published by the Organisation for Economic Co-operation and Development; or
(c) any provisions under the tax laws of a country that can reasonably be considered to have been enacted or otherwise brought into effect by the country with the intention of implementing, in whole or in part, a Qualified Domestic Minimum Top-up Tax (as defined in the model rules referred to in paragraph (b)). (régime fiscal minimum déterminé)
structured arrangement means any transaction, or series of transactions, if
(a) the transaction or series includes a payment that gives rise to a deduction/non-inclusion mismatch; and
(b) it can reasonably be considered, having regard to all the facts and circumstances, including the terms or conditions of the transaction or series, that
(i) portion of any economic benefit arising from the deduction/non-inclusion mismatch is reflected in the pricing of the transaction or series, or
(ii) the transaction or series was otherwise designed to, directly or indirectly, give rise to the deduction/non-inclusion mismatch. (dispositif structuré)
transaction includes an arrangement or event. (opération)
End of inserted block(a) in the absence of this section and subsection 18(4), an amount would be deductible, in respect of the payment, in computing a taxpayer’s income from a business or property for a taxation year; and
(b) that amount is the deduction component of a hybrid mismatch arrangement under which the payment arises.
End of inserted block(a) there would be no hybrid mismatch arrangement in respect of the payment if the payment did not arise under, or in connection with, a structured arrangement;
(b) at the time that the taxpayer entered into, or acquired an interest in any part of a transaction that is, or is part of, the structured arrangement, it was not reasonable to expect that any of the following entities were aware of the deduction/non-inclusion mismatch arising from the payment:
(i) the taxpayer,
(ii) an entity with which the taxpayer does not deal at arm’s length, or
(iii) a specified entity in respect of the taxpayer; and
(c) none of the entities described in subparagraphs (b)(i) to (iii) shared in the value of any economic benefit resulting from the deduction/non-inclusion mismatch.
End of inserted block(a) the following condition is met:
(i) can reasonably be expected to be — and actually is — foreign ordinary income of an entity for a foreign taxation year that begins on or before the day that is 12 months after the end of the relevant year, or
(ii) is Canadian ordinary income of a taxpayer for a taxation year that begins on or before the day that is 12 months after the end of the relevant year; or
(b) the following condition is met:
(i) would, in the absence of section 12.7, be Canadian ordinary income of a taxpayer for a taxation year that begins on or before the day that is 12 months after the end of the relevant foreign year, or
(ii) can reasonably be expected to be — and actually is — foreign ordinary income of another entity for a foreign taxation year that begins on or before the day that is 12 months after the end of the relevant foreign year.
End of inserted block(a) the amount, if any, determined for A in paragraph (6)(a) in respect of the payment is the deduction component of the deduction/non-inclusion mismatch;
(b) the amount, if any, determined for C in paragraph (6)(b) in respect of the payment is the foreign deduction component of the deduction/non-inclusion mismatch; and
(c) the amount of the deduction/non-inclusion mismatch arising from the payment is determined by the formula
(i) if paragraph (6)(a) applies in respect of the payment, the deduction component of the deduction/non-inclusion mismatch, or
(ii) if paragraph (6)(b) applies in respect of the payment, the foreign deduction component of the deduction/non-inclusion mismatch, and
(i) if subparagraph (i) of the description of A applies,
(A) where the amount determined for B in paragraph (6)(a) in respect of the payment is equal to 10% or less of the amount determined for A, nil, and
(B) in any other case, the amount determined for B in paragraph (6)(a) in respect of the payment, or
(ii) if subparagraph (ii) of the description of A applies,
(A) where the amount determined for D in paragraph (6)(b) in respect of the payment is equal to 10% or less of the amount determined for A, nil, and
(B) in any other case, the amount determined for D in paragraph (6)(b) in respect of the payment.
End of inserted block(a) the entity is deemed to make a payment in the year under the debt to the creditor in respect of the debt, in an amount equal to the deductible amount, and the creditor is deemed to be a recipient of the payment;
(b) the deductible amount is deemed to be in respect of the payment;
(c) any amount that is foreign ordinary income or Canadian ordinary income of the creditor in respect of notional interest income on the debt, that is calculated in respect of the same time period as the notional interest expense, is deemed to arise in respect of the payment; and
(d) any deduction/non-inclusion mismatch arising from the payment is deemed to satisfy the condition in paragraph (10)(d).
End of inserted block(a) the payment (other than a payment described in paragraphs (14)(a) to (d)) arises under, or in connection with, a financial instrument;
(b) any of the following conditions is satisfied:
(i) a payer of the payment does not deal at arm’s length with, or is a specified entity in respect of, a recipient of the payment, or
(ii) the payment arises under, or in connection with, a structured arrangement;
(c) the payment gives rise to a deduction/non-inclusion mismatch; and
(d) it can reasonably be considered that the deduction/non-inclusion mismatch
(i) arises in whole or in part because of a difference in the treatment of the financial instrument — or of one or more transactions, either alone or together, where the transaction or transactions are part of a transaction or series of transactions that includes the payment or relates to the financial instrument — for tax purposes under the laws of more than one country that is attributable to the terms or conditions of the financial instrument or transaction or transactions, or
(ii) would arise in whole or in part because of a difference described in subparagraph (i), if any other reason for the deduction/non-inclusion mismatch were disregarded.
End of inserted block(a) the amount of the hybrid financial instrument mismatch, in respect of the payment, is the portion of the amount of the deduction/non-inclusion mismatch arising from the payment that meets the condition in subparagraph (10)(d)(i) or (ii);
(b) the deduction component, if any, of the deduction/non-inclusion mismatch is the deduction component of the hybrid financial instrument arrangement in respect of the payment; and
(c) the foreign deduction component, if any, of the deduction/non-inclusion mismatch is the foreign deduction component of the hybrid financial instrument arrangement in respect of the payment.
End of inserted block(a) the payment arises under, or in connection with,
(i) a transaction or series of transactions (referred to in this subsection as the “transfer arrangement”) that includes a loan or a disposition or other transfer by an entity to another entity (referred to in this subsection as the “transferor” and “transferee”, respectively) of all or a portion of a financial instrument (referred to in this subsection as the “transferred instrument”), or
(ii) the transferred instrument;
(b) any of the following conditions is satisfied:
(i) at any time during the transfer arrangement
(A) a payer of the payment does not deal at arm’s length with, or is a specified entity in respect of, a recipient of the payment, or
(B) the transferor does not deal at arm’s length with, or is a specified entity in respect of, the transferee, or
(ii) the payment arises under, or in connection with, a structured arrangement;
(c) the payment gives rise to a deduction/non-inclusion mismatch; and
(d) it can reasonably be considered that the deduction/non-inclusion mismatch arises (or would arise, if any reason for the mismatch other than the reasons described in subparagraphs (i) and (ii) were disregarded), in whole or in part, because
(i) if the payment arises as compensation for a particular payment under the transferred instrument,
(A) the tax laws of one country treat all or a portion of the payment as though it has the same character as, or represents, the particular payment, in determining the tax consequences to an entity that is a recipient of the payment but not of the particular payment, and
(B) the tax laws of another country treat all or a portion of the payment as a deductible expense of another entity, or
(ii) in any other case,
(A) the tax laws of one country treat one or more transactions included in the transfer arrangement, either alone or together, as or as equivalent to a borrowing or other indebtedness, or treat all or a portion of the payment as arising under, or in connection with, a borrowing or other indebtedness, and the tax laws of another country do not treat the transaction or transactions, or the payment, as the case may be, in that manner, or
(B) the tax laws of one country treat the payment, or any other payment arising under, or in connection with, the transfer arrangement or transferred instrument, as though the payment or other payment, as the case may be, was derived by one entity and the tax laws of another country treat the payment or other payment, as the case may be, as though it was derived by another entity, because of a difference in how the countries treat one or more transactions included in the transfer arrangement, either alone or together.
End of inserted block(a) the amount of the hybrid transfer mismatch, in respect of the payment, is the portion of the amount of the deduction/non-inclusion mismatch arising from the payment that meets a condition in subparagraph (12)(d)(i) or (ii);
(b) the deduction component, if any, of the deduction/non-inclusion mismatch is the deduction component of the hybrid transfer arrangement in respect of the payment; and
(c) the foreign deduction component, if any, of the deduction/non-inclusion mismatch is the foreign deduction component of the hybrid transfer arrangement in respect of the payment.
End of inserted block(a) the payment arises under, or in connection with, an arrangement under which all or a portion of a financial instrument is loaned or disposed of or otherwise transferred by an entity to another entity (referred to in this subsection as the “transferor” and “transferee”, respectively);
(b) the transferee, or an entity that does not deal at arm’s length with the transferee, is a payer of the payment;
(c) the transferor, or an entity that does not deal at arm’s length with the transferor, is a recipient of the payment;
(d) all or a portion of the payment can reasonably be considered to represent or otherwise reflect, or be determined by reference to
(i) another payment (referred to in this subsection and subsection (15) as the “underlying return”) that arises under, or in connection with, the financial instrument, or
(ii) revenue, profit, cash flow, commodity price or any other similar criterion;
(e) any of the following conditions is satisfied:
(i) at any time during that series of transactions that includes the arrangement,
(A) a payer of the payment does not deal at arm’s length with, or is a specified entity in respect of, a recipient of the payment, or
(B) the transferor does not deal at arm’s length with, or is a specified entity in respect of, the transferee, or
(ii) the payment arises under, or in connection with, a structured arrangement;
(f) the payment
(i) would give rise to a deduction/non-inclusion mismatch if any Canadian ordinary income of a taxpayer for a taxation year and any foreign ordinary income of an entity for a foreign taxation year, in respect of the payment, were limited to the portion of those amounts that can reasonably be considered to relate to the portion of the payment that is described in paragraph (d), or
(ii) if the condition in subparagraph (i) is not met, would meet the condition in that subparagraph if any amount that, in the absence of this section, subsection 18(4) or any foreign expense restriction rule, would be — or would reasonably be expected to be — deductible by the transferee in respect of the underlying return were instead considered to be deductible in respect of the payment, to the extent that the amount
(A) would be — or would reasonably be expected to be — deductible by the transferee in computing its income from a business or property for a taxation year or its relevant foreign income or profits for a foreign taxation year, as the case may be, and
(B) would be — or would reasonably be expected to be — so deductible because the underlying return accrued (or is considered to accrue) for a period before the transfer;
(g) one of the following conditions is satisfied:
(i) the transferee or an entity that does not deal at arm’s length with the transferee is a recipient of the underlying return — or, if subparagraph (d)(ii) applies, a distribution under the financial instrument — and the amount of the underlying return or the distribution, as the case may be, exceeds the total of all amounts, in respect of the underlying return or the distribution, as the case may be, each of which can reasonably be expected to be — and actually is — foreign ordinary income for a foreign taxation year or Canadian ordinary income for a taxation year, as the case may be, of the recipient,
(ii) the condition in subparagraph (i) would be satisfied if the transferee were the recipient of the underlying return, or, if subparagraph (d)(ii) applies, a distribution under the financial instrument, or
(iii) if the transferor were the recipient of the underlying return, or, if subparagraph (d)(ii) applies, a distribution under the financial instrument,
(A) an amount in respect of the underlying return or distribution, as the case may be, would reasonably be expected to be foreign ordinary income for a foreign taxation year or Canadian ordinary income for a taxation year, as the case may be, of the transferor,
(B) the underlying return or distribution, as the case may be, would arise under a hybrid mismatch arrangement, or
(C) a foreign hybrid mismatch rule would reasonably be expected to apply in respect of the underlying return or distribution, as the case may be; and
(h) one of the following entities is not resident in Canada:
(i) the transferor,
(ii) the transferee,
(iii) a recipient of the payment,
(iv) a payer of the payment,
(v) the issuer of the financial instrument,
(vi) a recipient of the underlying return, and
(vii) if an entity described in any of subparagraphs (i) to (vi) is a partnership, a member of that entity.
End of inserted block(a) the amount of the substitute payment mismatch, in respect of the payment, is the lesser of
(i) the amount of the deduction/non-inclusion mismatch arising from the payment,
(A) if the condition in subparagraph (14)(f)(i) applies, determined based on the assumption in that subparagraph, or
(B) if the condition in subparagraph (14)(f)(ii) applies, determined based on the assumption in that subparagraph, and
(ii) the amount of the payment, or the portion of the payment, as the case may be, described in paragraph (14)(d);
(b) the deduction component, if any, of the deduction/non-inclusion mismatch is the deduction component of the substitute payment arrangement in respect of the payment;
(c) the foreign deduction component, if any, of the deduction/non-inclusion mismatch is the foreign deduction component of the substitute payment arrangement in respect of the payment; and
(d) if the condition in subparagraph (14)(f)(ii) is met in respect of the payment, any amount that, in the absence of this section, subsection 18(4) or any foreign expense restriction rule, would be — or would reasonably be expected to be — deductible by the transferee in respect of the underlying return that meets the conditions in clauses (14)(f)(ii)(A) and (B) is deemed to be deductible by the transferee in respect of the payment for the purposes of applying subsections (3) and (4) and section 12.7.
End of inserted block(a) in determining the equity interests owned, directly or indirectly, by any entity (in this paragraph referred to as the “first entity”) in any other entity at any time,
(i) the rights of the first entity, and any entities with which it does not deal at arm’s length, that are rights referred to in the portion of the definition specified shareholder in subsection 18(5) after paragraph (b) of that definition or in paragraph (a) or (b) of the definition specified beneficiary in that subsection, or that are similar rights in respect of partnerships or any other entity, are deemed to be immediate and absolute and to have been exercised at that time, and
(ii) paragraph (c) of the definition specified beneficiary in subsection 18(5) is deemed to apply at that time and the references in that definition to “particular person” are to be read as references to “first entity”; and
(b) notwithstanding paragraph (a), a particular entity is deemed not to be a specified entity in respect of another entity at any time if
(i) the particular entity would, but for this paragraph, be a specified entity in respect of the other entity at that time,
(ii) there was in effect at that time an agreement or arrangement under which, on the satisfaction of a condition or the occurrence of an event that it is reasonable to expect will be satisfied or will occur, the particular entity will cease to be a specified entity in respect of the other entity, and
(iii) the purpose for which the particular entity became a specified entity was the safeguarding of rights or interests of the particular entity or an entity with which the particular entity is not dealing at arm’s length in respect of any indebtedness owing at any time to the particular entity or an entity with which the particular entity is not dealing at arm’s length.
End of inserted block(a) it can reasonably be considered that one of the main purposes of a transaction or series of transactions that includes the payment is to avoid or limit the application of subsection (4), 12.7(3) or 113(5) in respect of the payment; and
(b) any of the following conditions is met:
(i) the payment is a dividend and an amount would be — or would reasonably be expected to be — deductible in respect of the payment in computing relevant foreign income or profits of an entity for a foreign taxation year,
(ii) the mismatch or other outcome arises in whole or in part because of a difference in tax treatment of any transaction or series of transactions under the laws of more than one country that is attributable to the terms or conditions of the transaction or one or more transactions included in the series, or
(iii) the mismatch or other outcome would arise in whole or in part because of a difference described in subparagraph (ii), if any other reason for the mismatch or other outcome were disregarded.
End of inserted block(a) an amount is not deductible in respect of a payment because of subsection (4); or
(b) subsection 12.7(3) includes an amount in respect of a payment.
End of inserted block(a) have an effect, or be intended to have an effect, that is substantially similar to subsection 18(4) Insertion start or 18.2(2) Insertion end ; or
(a) in the absence of this section and Insertion start subsections Insertion end 18(4) Insertion start and 18.2(2) Insertion end , an amount would be deductible, in respect of the payment, in computing a taxpayer’s income from a business or property for a taxation year; and
(ii) if the condition in subparagraph (i) is not met, would meet the condition in that subparagraph if any amount that, in the absence of this section, Insertion start subsections Insertion end 18(4) Insertion start and 18.2(2) Insertion end or any foreign expense restriction rule, would be — or would reasonably be expected to be — deductible by the transferee in respect of the underlying return were instead considered to be deductible in respect of the payment, to the extent that the amount
(d) if the condition in subparagraph (14)(f)(ii) is met in respect of the payment, any amount that, in the absence of this section, Insertion start subsections Insertion end 18(4) Insertion start and 18.2(2) Insertion end or any foreign expense restriction rule, would be — or would reasonably be expected to be — deductible by the transferee in respect of the underlying return that meets the conditions in clauses 14(f)(ii)(A) and (B) is deemed to be deductible by the transferee in respect of the payment for the purposes of applying subsections (3) and (4) and section 12.7.
(7) Subsection (1) applies in respect of payments arising on or after July 1, 2022, except that subsection 18.4(21) of the Act, as enacted by subsection (1), does not apply in respect of a payment that arises before July 1, 2023.
(8) Subsections (2) to (6) apply in respect of taxation years of a taxpayer that begin on or after October 1, 2023. However, subsections (2) to (6) also apply in respect of a taxation year of a taxpayer that begins before, and ends after, October 1, 2023 if
(a) any of the taxpayer’s three immediately preceding taxation years was, because of a transaction or event or a series of transactions or events, shorter than it would have been in the absence of that transaction, event or series; and
(b) it can reasonably be considered that one of the purposes of the transaction, event or series was to defer the application of paragraph 12(1)(l.2) of the Act, as enacted by subsection 2(1), or the application of section 18.2 or 18.21 of the Act, as enacted by subsection 7(1), to the taxpayer.
(yy) if subsection 18.4(4) has applied to deny a taxpayer a deduction, for the year or a preceding taxation year, for all or a portion of an amount in respect of a payment arising under a hybrid mismatch arrangement, and the taxpayer demonstrates that an amount is foreign ordinary income of an entity in respect of the payment (other than any amount of foreign ordinary income already taken into account in determining the amount of the deduction that was previously denied or a deduction under this paragraph) for a foreign taxation year that ends on or before the day that is 12 months after the end of the year,
(i) the lesser of
(A) the amount by which the deduction that was denied exceeds the total of all amounts already deducted under this paragraph in respect of the payment for the year or any previous year, and
(B) the amount of the foreign ordinary income, and
(ii) the amount that is deductible under this paragraph is deemed to be deductible in respect of the payment.
End of inserted block(2) Subsection (1) applies in respect of payments arising on or after July 1, 2022.
(iii) subject to Insertion start subsections Insertion end (1.1) Insertion start to (1.3) Insertion end , such amount as the taxpayer may claim
(3) Subsections (1) and (2) apply in respect of transactions that occur on or after January 1, 2024.
(xiii) any amount required by subsection 127(30) Insertion start or section 211.92 Insertion end to be added to the taxpayer’s tax otherwise payable under this Part for a taxation year that ended before that time Insertion start in respect of the interest in the partnership Insertion end ;
(xiii) any amount required by subsection 127(30) or Insertion start 127.45(17) Insertion end 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;
(vi.1) an amount equal to that portion of all amounts of a CCUS tax credit deducted under subsection 127.44(3) in computing the tax otherwise payable by the taxpayer under this Part for the taxpayer’s taxation years ending before that time that may reasonably be attributed to amounts added in computing the tax credit of the taxpayer because of subsection 127.44(11),
End of inserted block(vi.2) an amount equal to that portion of all amounts of a clean technology investment tax credit deducted under subsection 127.45(6) in computing the tax otherwise payable by the taxpayer under this Part for the taxpayer’s taxation years ending before that time that may reasonably be attributed to amounts added in computing the tax credit of the taxpayer because of subsection 127.45(8),
End of inserted block(5) Subsections (1) and (3) are deemed to have come into force on January 1, 2022.
(6) Subsections (2) and (4) are deemed to have come into force on March 28, 2023.
(f.1) the production or marketing of calcium chloride, gypsum, kaolin, Insertion start lithium Insertion end , sodium chloride or potash,
(g) the manufacturing of products, where the manufacturing involves the processing of calcium chloride, gypsum, kaolin, Insertion start lithium Insertion end , sodium chloride or potash,
(a) a mine includes a well for the extraction of material from a lithium brine deposit;
(b) all wells of a taxpayer for the extraction of material from one or more lithium brine deposits, the material produced from which is sent to the same plant for processing, are deemed to be one mine of the taxpayer; and
(c) all wells of a taxpayer for the extraction of material from one or more lithium brine deposits that the Minister, in consultation with the Minister of Natural Resources, determines constitute one project, are deemed to be one mine of the taxpayer.
End of inserted block(3) Subsections (1) and (2) are deemed to have come into force on March 28, 2023.
(c.2) any expense, or portion of any expense, that is not a Canadian exploration expense, incurred by the taxpayer after March 20, 2013 for the purpose of bringing a new mine in a mineral resource in Canada, other than a bituminous sands deposit or an oil shale deposit, into production in reasonable commercial quantities and incurred before the new mine comes into production in such quantities, including an expense for clearing, removing overburden, stripping, sinking a mine shaft, constructing an adit or other underground entry or Insertion start drilling a well for the extraction of lithium from brines Insertion end ,
(d) any expense (other than an amount included in the capital cost of depreciable property) incurred by the taxpayer after 1987
(i) in sinking or excavating a mine shaft, main haulage way or similar underground work designed for continuing use, for a mine in a mineral resource in Canada built or excavated after the mine came into production,
(ii) in extending any such shaft, haulage way or work Insertion start referred to in subparagraph (i) Insertion end , or
(iii) in drilling or completing a well for the extraction of lithium from brines in Canada after the mine came into production,
End of inserted block(2) Subsection (1) applies in respect of expenses incurred on or after March 28, 2023.
(I) the Insertion start total of all amounts Insertion end required by Insertion start subsections Insertion end 127(8) and Insertion start 127.44(11) Insertion end in respect of the partnership to be added in computing the investment tax credit Insertion start or the CCUS tax credit (as defined in subsection 127.44(1) Insertion end ) of the taxpayer in respect of the fiscal period, and
(I) the total of all amounts required by subsections 127(8), 127.44(11) and Insertion start 127.45(8) Insertion end 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)) Insertion start or the clean technology investment tax credit (as defined in subsection 127.45(1) Insertion end ) of the taxpayer in respect of the fiscal period, and
(3) Subsection (1) is deemed to have come into force on January 1, 2022.
(4) Subsection (2) is deemed to have come into force on March 28, 2023.
an amount in respect of the interest was or would have been deductible in computing the debtor’s income, taxable income or taxable income earned in Canada, as the case may be, if this Act were read without reference to paragraph 18(1)(g), subsections 18(2), (3.1) and (4) and Insertion start 18.2(2) Insertion end and section 21; (créance commerciale)
(2) Subsection (1) applies in respect of taxation years of a taxpayer that begin on or after October 1, 2023.
(c) that satisfies the conditions set out in subsection 15(2.51) and is repaid within 15 years after the qualifying business transfer referred to in that subsection.
End of inserted block(2) Subsection (1) comes into force or is deemed to have come into force on January 1, 2024.
(e) notwithstanding any other paragraph in this subsection, if this paragraph applies because of subsection (2.31) or (2.32) to a disposition of subject shares by a taxpayer to a purchaser corporation, the taxpayer and the purchaser corporation are deemed to deal with each other at arm’s length at the time of the disposition of the subject shares.
End of inserted block(a) a child of a taxpayer has the same meaning as in subsection 70(10) and also includes
(i) a niece or nephew of the taxpayer,
(ii) a niece or nephew of the taxpayer’s spouse or common-law partner,
(iii) a spouse or common-law partner of a niece or nephew referred to in subparagraph (i) or (ii), and
(iv) a child of a niece or nephew referred to in subparagraph (i) or (ii);
(b) in applying subparagraphs (2.31)(c)(iii) and (2.32)(c)(iii), if the relevant group entity is a partnership,
(i) the partnership is deemed to be a corporation (in this paragraph referred to as the “deemed corporation”),
(ii) the deemed corporation is deemed to have a capital stock of a single class of shares, with a total of 100 issued and outstanding shares,
(iii) each member (in this paragraph referred to as a “deemed shareholder”) of the partnership is deemed to be a shareholder of the deemed corporation,
(iv) each deemed shareholder of the deemed corporation is deemed to hold a number of shares in the capital stock of the deemed corporation determined by the formula
(A) the deemed shareholder’s specified proportion for the last fiscal period of the deemed corporation, or
(B) if the deemed shareholder does not have a specified proportion described in clause (A), the proportion that is the fair market value of the deemed shareholder’s interest in the deemed corporation at that time relative to the fair market value of all interests in the deemed corporation at that time, and
(v) the deemed corporation’s fiscal period is deemed to be its taxation year;
(c) own, directly or indirectly, in respect of a property, means
(i) direct ownership of the property, and
(ii) an ownership interest or, for civil law, a right in the shares of a corporation, an interest in a partnership or an interest in a trust that has a direct or indirect interest or, for civil law, a right, in the property, except that for the purposes of paragraphs (2.31)(d) and (e) and (2.32)(d) and (e), this subparagraph does not apply as a look-through rule for an interest, or for civil law, a right in non-voting preferred shares or debt of
(A) the purchaser corporation (within the meaning of subsections (2.31) and (2.32)),
(B) the subject corporation (within the meaning of subsections (2.31) and (2.32)), or
(C) any relevant group entity (within the meaning of subsections (2.31) and (2.32));
(d) if a person or partnership’s share of the accumulating income or capital of a trust in respect of which the person or partnership has an interest as a beneficiary depends on the exercise by a person (in this paragraph referred to as a “trustee”) of, or the failure by any trustee to exercise, a discretionary power, that trustee is deemed to have fully exercised the power, or to have failed to exercise the power, as the case may be;
(e) if one or more children referred to in
(i) subparagraph (2.31)(f)(i) have disposed of, or caused the disposition of, all of the shares in the capital stock of the purchaser corporation, the subject corporation or all relevant group entities to an arm’s length person or group of persons, the conditions set out in paragraphs (2.31)(f) and (g) are deemed to be met as of the time of the disposition, provided that all equity interests in all relevant businesses owned, directly or indirectly, by each child referred to in subparagraph (2.31)(f)(i) are included in the disposition, or
(ii) subparagraph (2.32)(g)(i) have disposed of, or caused the disposition of, all of the shares in the capital stock of the purchaser corporation, the subject corporation or all relevant group entities to an arm’s length person or group of persons, the conditions set out in paragraphs (2.32)(g) and (h) are deemed to be met as of the time of the disposition, provided that all equity interests in all relevant businesses owned, directly or indirectly, by each child referred to in subparagraph (2.32)(g)(i) are included in the disposition; and
(f) if one or more children referred to in
(i) subparagraph (2.31)(f)(i) have disposed of, or caused the disposition of, any of the shares in the capital stock of the purchaser corporation, the subject corporation or a relevant group entity to another child or group of children of the taxpayer (in this paragraph referred to as the “new child” or the “new children”), the conditions set out in paragraphs (2.31)(f) and (g) are deemed
(A) to be met as of the time of the disposition, and
(B) to continue to apply to the new child (or the new children) and any other member of the group of children that controls the subject corporation and the purchaser corporation at the time of the disposition, or
(ii) subparagraph (2.32)(g)(i) have disposed of, or caused the disposition of, any of the shares in the capital stock of the purchaser corporation, the subject corporation, or a relevant group entity to another child or group of children of the taxpayer (in this paragraph referred to as the “new child” or the “new children”), the conditions set out in paragraphs (2.32)(g) and (h) are deemed
(A) to be met as of the time of the disposition, and
(B) to continue to apply to the new child (or the new children) and any other member of the group of children that controls the subject corporation and the purchaser corporation at the time of the disposition;
(g) if a child, or each of the children, referred to in
(i) subparagraph (2.31)(f)(ii) has died or has, after the disposition of the subject shares, suffered one or more severe and prolonged impairments in physical or mental functions, the conditions set out in paragraphs (2.31)(f) and (g) are deemed to be met as of the time of the death or mental or physical impairment, or
(ii) subparagraph (2.32)(g)(ii) has died or has, after the disposition of the subject shares, suffered one or more severe and prolonged impairments in physical or mental functions, the conditions set out in paragraphs (2.32)(g) and (h) are deemed to be met as of the time of the death or mental or physical impairment;
(h) if a business of a subject corporation or a relevant group entity has ceased to be carried on due to the disposition of all of the assets that were used to carry on the business in order to satisfy debts owed to creditors of the corporation or of the entity, the conditions set out in respect of the business in subparagraphs (2.31)(f)(ii) and (iii) and (2.31)(g)(i) or (2.32)(g)(ii) and (iii) and (2.32)(h)(i), as applicable, are deemed to be met as of the time of the disposition; and
(i) in applying paragraphs (2.31)(g) and (2.32)(h), management refers to the direction or supervision of business activities but does not include the provision of advice.
End of inserted block(a) the taxpayer has not previously, at any time after 2023, sought an exception to the application of subsection (1) under paragraph (2)(e) in respect of a disposition of shares that, at that time, derived their value from an active business that is relevant to the determination of whether the subject shares satisfy the condition set out in subparagraph (b)(iii);
(b) at the disposition time,
(i) the taxpayer is an individual (other than a trust),
(ii) the purchaser corporation is controlled by one or more children (within the meaning of paragraph (2.3)(a), in this subsection referred to as the “child” or “children”) of the taxpayer, each of whom is 18 years of age or older, and
(iii) the subject shares are qualified small business corporation shares or shares of the capital stock of a family farm or fishing corporation (as those terms are defined in subsection 110.6(1));
(c) at all times after the disposition time, the taxpayer does not — either alone or together with a spouse or common-law partner of the taxpayer — control, directly or indirectly in any manner whatever,
(i) the subject corporation,
(ii) the purchaser corporation, or
(iii) any other person or partnership (in this subsection referred to as a “relevant group entity”) that carries on, at the disposition time, an active business (referred to in this subsection as a “relevant business”) that is relevant to the determination of whether the subject shares satisfy the condition set out in subparagraph (b)(iii);
(d) at all times after the disposition time, the taxpayer does not – either alone or together with a spouse or common law partner of the taxpayer – own, directly or indirectly,
(i) 50% or more of any class of shares, other than shares of a specified class as defined in subsection 256(1.1) (in this subsection referred to as “non-voting preferred shares”), of the capital stock of the subject corporation or of the purchaser corporation, or
(ii) 50% or more of any class of equity interest (other than non-voting preferred shares) in any relevant group entity;
(e) within 36 months after the disposition time and at all times thereafter, the taxpayer and a spouse or common-law partner of the taxpayer do not own, directly or indirectly,
(i) any shares, other than non-voting preferred shares of the capital stock of the subject corporation or of the purchaser corporation, or
(ii) any equity interest (other than non-voting preferred shares) in any relevant group entity;
(f) subject to subsection (2.3), from the disposition time until 36 months after that time,
(i) the child or group of children, as the case may be, controls the purchaser corporation,
(ii) the child, or at least one member of the group of children, as the case may be, is actively engaged on a regular, continuous and substantial basis (within the meaning of paragraph 120.4(1.1)(a)) in a relevant business of the subject corporation or a relevant group entity, and
(iii) each relevant business of the subject corporation and any relevant group entity is carried on as an active business;
(g) subject to subsection (2.3), within 36 months after the disposition time or such greater period as is reasonable in the circumstances, the taxpayer and a spouse or common-law partner of the taxpayer take reasonable steps to
(i) transfer management of each relevant business of the subject corporation and any relevant group entity to the child or at least one member of the group of children referred to in subparagraph (f)(ii), and
(ii) permanently cease to manage each relevant business of the subject corporation and any relevant group entity; and
(h) the taxpayer and the child, or the taxpayer and each member of the group of children, as the case may be,
(i) jointly elect, in prescribed form, for paragraph (2)(e) to apply in respect of the disposition of the subject shares, and
(ii) file the election with the Minister on or before the taxpayer’s filing-due date for the taxation year that includes the disposition time.
End of inserted block(a) the taxpayer has not previously, at any time after 2023, sought an exception to the application of subsection (1) pursuant to paragraph (2)(e) in respect of a disposition of shares that, at that time, derived their value from an active business that is relevant to the determination of whether the subject shares satisfy the condition set out in subparagraph (b)(iii);
(b) at the disposition time,
(i) the taxpayer is an individual (other than a trust),
(ii) the purchaser corporation is controlled by one or more children (within the meaning of paragraph (2.3)(a), and referred to in this subsection as the “child” or “children”) of the taxpayer, each of whom is 18 years of age or older, and
(iii) the subject shares are qualified small business corporation shares or shares of the capital stock of a family farm or fishing corporation (as those terms are defined in subsection 110.6(1));
(c) at all times after the disposition time, the taxpayer does not — either alone or together with a spouse or common-law partner of the taxpayer — control
(i) the subject corporation,
(ii) the purchaser corporation, or
(iii) any person or partnership (referred to in this subsection as a “relevant group entity”) that carries on, at the disposition time, an active business (referred to in this subsection as a “relevant business”) that is relevant to the determination of whether the subject shares satisfy the condition in subparagraph (b)(iii);
(d) at all times after the disposition time, the taxpayer does not — either alone or together with a spouse or common-law partner of the taxpayer — own, directly or indirectly,
(i) 50% or more of any class of shares, other than shares of a specified class as defined in subsection 256(1.1) (in this subsection referred to as “non-voting preferred shares”), of the capital stock of the subject corporation or of the purchaser corporation, or
(ii) 50% or more of any class of equity interest (other than non-voting preferred shares) in any relevant group entity;
(e) within 36 months after the disposition time and at all times thereafter, the taxpayer and a spouse or common-law partner of the taxpayer do not own, directly or indirectly,
(i) any shares, other than non-voting preferred shares of the capital stock of the subject corporation or of the purchaser corporation, or
(ii) any equity interest (other than non-voting preferred shares) in any relevant group entity;
(f) within 10 years after the disposition time (referred to in this subsection as the “final sale time”) and at all times after the final sale time, the taxpayer and a spouse or common-law partner of the taxpayer do not own, directly or indirectly,
(i) in the case of a disposition of subject shares that are, at the disposition time, shares of the capital stock of a family farm or fishing corporation (as those terms are defined in subsection 110.6(1)), interests (including any debt or equity interest) in any of the subject corporation, the purchaser corporation, and any relevant group entity with a fair market value that exceeds 50% of the fair market value of all the interests that were owned, directly or indirectly, by the taxpayer and a spouse or common-law partner of the taxpayer immediately before the disposition time, or
(ii) in the case of a disposition of subject shares that are, at the disposition time, qualified small business corporation shares as those terms are defined in subsection 110.6(1) (other than subject shares described in subparagraph (i)), interests (including any debt or equity interest) in any of the subject corporation, the purchaser corporation and any relevant group entity with a fair market value that exceeds 30% of the fair market value of all the interests that were owned, directly or indirectly, by the taxpayer and a spouse or common-law partner of the taxpayer immediately before the disposition time;
(g) subject to subsection (2.3), from the disposition time until the later of 60 months after the disposition time and the final sale time,
(i) the child or group of children, as the case may be, controls the purchaser corporation,
(ii) the child, or at least one member of the group of children, as the case may be, is actively engaged on a regular, continuous and substantial basis (within the meaning of paragraph 120.4(1.1)(a)) in a relevant business of the subject corporation or a relevant group entity, and
(iii) any relevant business of the subject corporation and any relevant group entity is carried on as an active business;
(h) subject to subsection (2.3), within 60 months of the disposition time or such greater period as is reasonable in the circumstances, the taxpayer and a spouse or common-law partner of the taxpayer take reasonable steps to
(i) transfer management of each relevant business of the subject corporation and any relevant group entity to the child or at least one member of the group of children referred to in subparagraph (g)(ii), and
(ii) permanently cease to manage each relevant business of the subject corporation and any relevant group entity; and
(i) the taxpayer and the child, or the taxpayer and each member of the group of children, as the case may be,
(i) jointly elect, in prescribed form, for paragraph (2)(e) to apply in respect of the disposition of the subject shares, and
(ii) file the election with the Minister on or before the taxpayer’s filing-due date for the taxation year that includes the disposition time.
End of inserted block(3) Subsections (1) and (2) apply to dispositions of shares that occur on or after January 1, 2024.
(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), Insertion start 84.1(2.31) and (2.32) Insertion end and 127(10.2), section 139.1, subsection 152(4.3), the determination of D in the definition undepreciated capital cost in subsection 13(21) and the determination of L in the definition cumulative Canadian exploration expense in subsection 66.1(6), the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation;
(qq.1) for the purposes of section 127.44 and Part XII.7, the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation;
End of inserted block(qq.1) for the purposes of sections 127.44 Insertion start and 127.45 Insertion end and Part XII.7, the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation;
(a) determining the new corporation’s non-capital loss, net capital loss, restricted farm loss, farm loss, limited partnership loss or Insertion start restricted interest and financing expense Insertion end , as the case may be, for any taxation year,
(a.1) determining, for any taxation year, the new corporation’s absorbed capacity, excess capacity and transferred capacity in determining its cumulative unused excess capacity for a taxation year, and
End of inserted block(b) determining the extent to which subsections 111(3) to (5.4) and paragraph 149(10)(c) apply to restrict the deductibility by the new corporation of any non-capital loss, net capital loss, restricted farm loss, farm loss, limited partnership loss or Insertion start restricted interest and financing expense Insertion end , as the case may be,
(d) the income of the new corporation ( Insertion start other than as a result of an amount of interest and financing expenses being deductible by the new corporation because of paragraph (a.1) Insertion end ) or any of its predecessors, or
(a) the amount deducted is in respect of all or any portion of a non-capital loss for another taxation year; and
(b) the non-capital loss or the portion of the non-capital loss, as the case may be, is a non-capital loss of the particular predecessor corporation for the other taxation year.
End of inserted block(9) Subsection (1) comes into force or is deemed to have come into force on January 1, 2024.
(10) Subsection (2) is deemed to have come into force on January 1, 2022.
(11) Subsection (3) is deemed to have come into force on March 28, 2022.
(12) Subsections (4) and (6) apply in respect of amalgamations that occur on or after October 1, 2023.
(13) Subsections (5), (7) and (8) apply in respect of amalgamations that occur in any taxation year.
(e.31) for the purposes of section 127.44 and Part XII.7 at the end of any particular taxation year ending after the subsidiary was wound up, the parent is deemed to be the same corporation as, and a continuation of, the subsidiary;
End of inserted block(e.31) for the purposes of sections 127.44 Insertion start and 127.45 Insertion end 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;
shall, for the purposes of this subsection, paragraphs 111(1)(a), Insertion start (a.1) Insertion end , (c), (d) and (e), subsection 111(3) and Part IV,
(d.2) in the case of the portion of any restricted interest and financing expense of the subsidiary that may reasonably be regarded as being incurred in carrying on the subsidiary’s expense business, be deemed, for the taxation year of the parent in which the subsidiary’s expense year ended, to be a restricted interest and financing expense of the parent from carrying on the subsidiary’s expense business that was not deductible by the parent in computing its taxable income for any taxation year that commenced before the commencement of the winding-up, and
(d.3) in the case of any other portion of any restricted interest and financing expense of the subsidiary that may reasonably be regarded as being incurred in respect of any other source, be deemed, for the taxation year of the parent in which the subsidiary’s expense year ended, to be a restricted interest and financing expense of the parent that was incurred in respect of that other source and that was not deductible by the parent in computing its taxable income for any taxation year that commenced before the commencement of the winding-up,
End of inserted block(e) if control of the parent has been acquired by a person or group of persons at any time after the commencement of the winding-up, or control of the subsidiary has been acquired by a person or group of persons at any time whatever, no amount in respect of the subsidiary’s non-capital loss, farm loss or Insertion start restricted interest and financing expense Insertion end for a taxation year ending before that time is deductible in computing the taxable income of the parent for a particular taxation year ending after that time, except that such portion of the subsidiary’s non-capital loss or farm loss as may reasonably be regarded as its loss from carrying on a business, Insertion start or restricted interest and financing expense as may reasonably be regarded as being the subsidiary’s expense or loss incurred in the course of carrying on a business Insertion end and, where a business was carried on by the subsidiary in that year, such portion of the non-capital loss as may reasonably be regarded as being in respect of an amount deductible under paragraph 110(1)(k) in computing its taxable income for the year, is deductible only
and for the purpose of this paragraph, where this subsection applied to the winding-up of another corporation in respect of which the subsidiary was the parent and this paragraph applied in respect of losses Insertion start and restricted interest and financing expenses Insertion end of that other corporation, the subsidiary shall be deemed to be the same corporation as, and a continuation of, that other corporation with respect to those losses Insertion start and restricted interest and financing expenses Insertion end ,
(g) any portion of a restricted interest and financing expense of the subsidiary that would otherwise be deemed by paragraph (d.2) or (d.3) to be a restricted interest and financing expense of the parent for a particular taxation year beginning after the commencement of the winding-up shall be deemed, for the purpose of computing the parent’s taxable income for taxation years beginning after the commencement of the winding-up, to be a restricted interest and financing expense of the parent for its immediately preceding taxation year and not for the particular year, where the parent so elects in its return of income under this Part for the particular year.
End of inserted block(c) for the purpose of computing the income of the corporation for its taxation year that includes the particular time, paragraph 12(1)(t) shall be read as follows:
“12(1)(t) the amount deducted under subsection 127(5) or (6) Insertion start or 127.44(3) Insertion end 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), Insertion start (c)(vi.1) Insertion end 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);”.
(c) for the purpose of computing the income of the corporation for its taxation year that includes the particular time, paragraph 12(1)(t) shall be read as follows:
“12(1)(t) the amount deducted under subsection 127(5) or (6), 127.44(3) or Insertion start 127.45(6) Insertion end 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) Insertion start to (c)(vi.2) Insertion end or (h)(ii) or the amount determined for I in the definition undepreciated capital cost in subsection 13(21) or L in the definition cumulative Canadian exploration expense in subsection 66.1(6);”.
(12) Subsections (1) and (10) are deemed to have come into force on January 1, 2022.
(13) Subsections (2) and (11) are deemed to have come into force on March 28, 2023.
(14) Subsections (3) to (8) apply in respect of windings-up that begin on or after October 1, 2023.
(15) Subsection (9) applies in respect of windings-up that begin in any taxation year.
(a) if the non-CCPC Insertion start was a substantive CCPC at any time in its preceding taxation year or Insertion end would, but for paragraph (d) of the definition Canadian-controlled private corporation in subsection 125(7), be a Canadian-controlled private corporation in its preceding taxation year, 80% of its aggregate investment income for its preceding taxation year, and
Insertion start (a) Insertion end in the particular taxation year but before the particular time, Insertion start or Insertion end
(b) in the preceding taxation year, but only to the extent of the lesser of
(i) the amount included under the description of D in the particular taxation year, and
(ii) the portion of the taxable dividend that did not reduce the non-CCPC’s low rate income pool in the preceding taxation year, and
End of inserted block(3) Subsections (1) and (2) apply to taxation years that begin on or after April 7, 2022.
(2) Subsection (1) applies in respect of a taxation year of a foreign affiliate of a taxpayer that ends in a taxation year of the taxpayer beginning on or after October 1, 2023. However, subsection (1) also applies in respect of a taxation year of a foreign affiliate of a taxpayer that ends in a taxation year of the taxpayer that begins before, and ends after, October 1, 2023 if
(a) any of the taxpayer’s three immediately preceding taxation years was, because of a transaction or event or a series of transactions or events, shorter than it would have been in the absence of that transaction, event or series; and
(b) it can reasonably be considered that one of the purposes of the transaction, event or series was to defer the application of paragraph 12(1)(l.2) of the Act, as enacted by subsection 2(1), or the application of section 18.2 or 18.21 of the Act, as enacted by subsection 7(1), to the taxpayer.
(a) there shall be added in respect of that share any amount included in respect of that share under subsection 91(1) or (3) in computing the taxpayer’s income for the year or any preceding taxation year (or that would have been required to have been so included in computing the taxpayer’s income but for subsection 56(4.1) and sections 74.1 to 75 of this Act and section 74 of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952), Insertion start except that, if the amount so included is greater than it otherwise would have been because of the application of clause 95(2)(f.11)(ii)(D), the amount added under this paragraph shall be the amount that would have been so included in the absence of that clause Insertion end ; and
(2) Subsection (1) applies in respect of a taxation year of a foreign affiliate of a taxpayer that ends in a taxation year of the taxpayer beginning on or after October 1, 2023. However, subsection (1) also applies in respect of a taxation year of a foreign affiliate of a taxpayer that ends in a taxation year of the taxpayer that begins before, and ends after, October 1, 2023 if
(a) any of the taxpayer’s three immediately preceding taxation years was, because of a transaction or event or a series of transactions or events, shorter than it would have been in the absence of that transaction, event or series; and
(b) it can reasonably be considered that one of the purposes of the transaction, event or series was to defer the application of paragraph 12(1)(l.2) of the Act, as enacted by subsection 2(1), or the application of section 18.2 or 18.21 of the Act, as enacted by subsection 7(1), to the taxpayer.
(2) Subsection (1) applies in respect of taxation years of a taxpayer that begin on or after October 1, 2023. However, subsection (1) also applies in respect of a taxation year that begins before, and ends after, October 1, 2023 if
(a) any of the taxpayer’s three immediately preceding taxation years was, because of a transaction or event or a series of transactions or events, shorter than it would have been in the absence of that transaction, event or series; and
(b) it can reasonably be considered that one of the purposes of the transaction, event or series was to defer the application of paragraph 12(1)(l.2) of the Act, as enacted by subsection 2(1), or the application of section 18.2 or 18.21 of the Act, as enacted by subsection 7(1), to the taxpayer.
(b) a dividend from another foreign affiliate of the taxpayer, except for any portion of the dividend that would be deemed under subsection 113(5) not to be a dividend received by the affiliate on a share of the capital stock of the other affiliate for the purposes of section 113, if the affiliate were a corporation resident in Canada,
End of inserted block(a) if the affiliate was a member of a partnership at the end of the fiscal period of the partnership that ended in the year and the partnership received a dividend at a particular time in that fiscal period from a corporation that would be, if the reference in subsection 93.1(1) to “corporation resident in Canada” were a reference to “taxpayer resident in Canada”, a foreign affiliate of the taxpayer for the purposes of sections 93 and 113 at that particular time, then the portion of the amount of that dividend that
Insertion start (i) Insertion end is included in the value determined for A in respect of the affiliate for the year and that would be, if the reference in subsection 93.1(2) to “corporation resident in Canada” were a reference to “taxpayer resident in Canada”, deemed by paragraph 93.1(2)(a) to have been received by the affiliate for the purposes of sections 93 and 113, and
(ii) would not be deemed under subsection 113(5) not to be a dividend received by the affiliate on a share of the capital stock of the other affiliate for the purposes of section 113, if the affiliate were a corporation resident in Canada, and
End of inserted block(A) this Act is to be read without reference to subsections Insertion start 12.7(3) Insertion end , 17(1), 18(4) Insertion start and 18.4(4) Insertion end and section 91, except that, where the foreign affiliate is a member of a partnership, section 91 is to be applied to determine the income or loss of the partnership and for that purpose subsection 96(1) is to be applied to determine the foreign affiliate’s share of that income or loss of the partnership,
(A) this Act is to be read without reference to subsections 12.7(3), 17(1), 18(4), Insertion start 18.2(2) Insertion end and 18.4(4) and section 91, except that, where the foreign affiliate is a member of a partnership, section 91 is to be applied to determine the income or loss of the partnership and for that purpose subsection 96(1) is to be applied to determine the foreign affiliate’s share of that income or loss of the partnership,
(A) this Act is to be read without reference to subsections 17(1), 18(4), 18.2(2) and 18.4(4) and section 91, except that, where the foreign affiliate is a member of a partnership, section 91 is to be applied to determine the income or loss of the partnership and for that purpose subsection 96(1) is to be applied to determine the foreign affiliate’s share of that income or loss of the partnership,
(D) if the foreign affiliate is a controlled foreign affiliate of the taxpayer at the end of the taxation year, and the taxpayer is not an excluded entity (as defined in subsection 18.2(1)) for its taxation year (referred to in this clause as the “taxpayer year”) in which the taxation year ends,
(I) notwithstanding any other provision of this Act, no deduction shall be made in respect of any amount that is included in the affiliate’s relevant affiliate interest and financing expenses (as defined in subsection 18.2(1)) for the taxation year, to the extent of the proportion of that amount that is determined by the first formula in subsection 18.2(2) in respect of the taxpayer for the taxpayer year, and
(II) an amount is to be included, in determining the amount described in subparagraph (f)(ii) for the taxation year, that is equal to the amount that would be included under paragraph 12(1)(l.2) in determining the amount described in subparagraph (f)(ii) for the taxation year if
1 clause (A) were read without regard to its reference to subsection 18.2(2), and
2 the proportion that applied for the purposes of subparagraph (ii) of the description of B in paragraph 12(1)(l.2) were the proportion that is determined by the first formula in subsection 18.2(2) in respect of the taxpayer for the taxpayer year, and
(E) notwithstanding any other provision of this Act, no deduction shall be made in respect of one or more amounts (each referred to in this clause as an “elected amount”) if
(I) the elected amount would, in the absence of this clause, clause (D) and subsection 18.2(19),
1 be included in the foreign affiliate’s relevant affiliate interest and financing expenses (as defined in subsection 18.2(1)) for the taxation year, and
2 be deductible in determining the amount described in subparagraph (f)(ii),
(II) the total of the elected amounts is equal to the lesser of the following amounts (determined without regard to this clause, clause (D) and subsection 18.2(19)):
1 the foreign affiliate’s foreign accrual property loss (as defined in subsection 5903(3) of the Income Tax Regulations) for the taxation year, and
2 the foreign affiliate’s relevant affiliate interest and financing expenses (as defined in subsection 18.2(1)) for the taxation year,
(III) the taxpayer files with the Minister, in respect of the elected amounts, an election in writing in prescribed manner under this clause,
(IV) the election specifies
1 each of the elected amounts,
2 the foreign affiliate’s relevant affiliate interest and financing expenses (as defined in subsection 18.2(1)) (determined without regard to this clause and subsection 18.2(19)) for the taxation year,
3 the foreign affiliate’s relevant affiliate interest and financing expenses (as defined in subsection 18.2(1)) for the taxation year,
4 the foreign affiliate’s foreign accrual property loss (as defined in subsection 5903(3) of the Income Tax Regulations) (determined without regard to this clause, clause (D) and subsection 18.2(19)) for the taxation year, and
5 the foreign affiliate’s foreign accrual property loss (as defined in subsection 5903(3) of the Income Tax Regulations) or foreign accrual property income, as the case may be, for the taxation year, and
(V) the election is filed on or before the filing-due date of the taxpayer for its taxation year in which the taxation year ends;
End of inserted block(F) the following rules apply for the purposes of applying subsection 12.7(3) and the related provisions of section 18.4 in respect of a payment of which the foreign affiliate, or a partnership of which the foreign affiliate is a member, is a recipient:
(I) the definitions in subsection 18.4(1) apply for the purposes of this clause,
(II) subsection 12.7(3) is deemed not to apply in respect of the payment if
1 the foreign affiliate’s income or loss derived from the payment is included under subparagraph (a)(ii) in computing the foreign affiliate’s income or loss from an active business for a taxation year, or
2 in the case of a payment that subsection 18.4(9) deems to be made to the foreign affiliate or the partnership by a particular entity in respect of a notional interest expense on a particular debt, any income or loss that were derived by the foreign affiliate from the payment would, based on the relevant assumptions in respect of the payment, be included under subparagraph (a)(ii) in computing the foreign affiliate’s income or loss from an active business for a taxation year,
(III) for the purposes of sub-subclause (II)2, the relevant assumptions in respect of the payment are
1 the payment is an amount of interest paid by the particular entity to the foreign affiliate or the partnership, as the case may be, under a legal obligation to pay interest on the particular debt in the taxation year of the foreign affiliate or the partnership in which an amount in respect of the payment would, in the absence of subclause (II), be included under subsection 12.7(3) in the income of the foreign affiliate or partnership, and
2 any amount that is deductible, in respect of the notional interest expense, is an amount deductible in respect of an expenditure for which the payment was made, and
(IV) the definition Canadian ordinary income in subsection 18.4(1) is to be read as if
1 its subparagraph (a)(ii) read as follows:
“(ii) the amount is described in paragraph (b) or (c) of the description of A in the definition foreign accrual property income in subsection 95(1), or”, and
2 the description of D in its paragraph (b) read as follows:
“D is the total of all amounts, each of which is an amount, in respect of the payment, that is included in the description of H in the definition foreign accrual property income in subsection 95(1) in computing the foreign accrual property income of a member of the partnership for a taxation year; or”;
End of inserted block(8) Subsections (1) and (2) apply in respect of any dividend received on or after July 1, 2024.
(9) Subsection (3) applies in respect of payments arising on or after July 1, 2022.
(10) Subsections (4) and (6) apply in respect of a taxation year of a foreign affiliate of a taxpayer that ends in a taxation year of the taxpayer beginning on or after October 1, 2023. However, subsections (4) and (6) also apply in respect of a taxation year of a foreign affiliate of a taxpayer that ends in a taxation year of the taxpayer that begins before, and ends after, October 1, 2023 if
(a) any of the taxpayer’s three immediately preceding taxation years was, because of a transaction or event or a series of transactions or events, shorter than it would have been in the absence of that transaction, event or series; and
(b) it can reasonably be considered that one of the purposes of the transaction, event or series was to defer the application of paragraph 12(1)(l.2) of the Act, as enacted by subsection 2(1), or the application of section 18.2 or 18.21 of the Act, as enacted by subsection 7(1), to the taxpayer.
(11) Subsections (5) and (7) apply in respect of payments arising on or after July 1, 2024.
(ii) the amount required by subsection 127(8) Insertion start or 127.44(11) Insertion end in respect of the partnership to be added in computing the investment tax credit Insertion start or the CCUS tax credit (as defined in subsection 127.44(1) Insertion end ) of the taxpayer for the taxation year,
(ii) the amount required by subsections 127(8), 127.44(11) or Insertion start 127.45(8) Insertion end 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)) Insertion start or the clean technology investment tax credit (as defined in subsection 127.45(1) Insertion end ) of the taxpayer for the taxation year,
(8) Subsections (1), (3) and (5) are deemed to have come into force on January 1, 2022.
(9) Subsections (2), (4) and (6) are deemed to have come into force on March 28, 2023.
(10) Subsection (7) applies in respect of taxation years that begin on or after October 1, 2023.
(a.1) a trust (other than a trust described in paragraph (a), (d) or Insertion start (h) Insertion end , a trust to which subsection 7(2) or (6) applies or a trust prescribed for the purpose of subsection 107(2)) all or substantially all of the property of which is held for the purpose of providing benefits to individuals each of whom is provided with benefits in respect of, or because of, an office or employment or former office or employment of any individual,
(h) an employee ownership trust.
End of inserted block(3) Subsections (1) and (2) apply in respect of transactions that occur on or after January 1, 2024.
(a.1) restricted interest and financing expenses for taxation years preceding the year, but no amount is deductible for the year in respect of restricted interest and financing expenses except to the extent of the amount determined by the formula
(A) the amount required by subsection 127(8) or Insertion start 127.44(11) Insertion end in respect of the partnership to be added in computing the investment tax credit Insertion start or the CCUS tax credit (as defined in subsection 127.44(1) Insertion end ) of the taxpayer for the taxation year,
(A) the amount required by subsections 127(8), 127.44(11) or Insertion start 127.45(8) Insertion end in respect of the partnership to be added in computing the investment tax credit, the CCUS tax credit (as defined in subsection 127.44(1)) or Insertion start the clean technology investment tax credit (as defined in subsection 127.45(1) Insertion end ) of the taxpayer for the taxation year,
(a) an amount in respect of a non-capital loss, Insertion start restricted interest and financing expense Insertion end , restricted farm loss, farm loss or limited partnership loss, as the case may be, for a taxation year is deductible, and an amount in respect of a net capital loss for a taxation year may be claimed, in computing the taxable income of a taxpayer for a particular taxation year only to the extent that it exceeds the total of
(i) amounts deducted under this section in respect of that non-capital loss, Insertion start restricted interest and financing expense Insertion end , restricted farm loss, farm loss or limited partnership loss in computing taxable income ( Insertion start or, in the case of a restricted interest and financing expense, in computing a non-capital loss Insertion end ) for taxation years preceding the particular taxation year,
(iii) amounts claimed in respect of that limited partnership loss in computing taxable income for taxation years preceding the particular taxation year to the extent that subsection 18.2(2) denied a deduction in respect of those amounts for the preceding taxation year; and
End of inserted block(b) no amount is deductible in respect of a non-capital loss, Insertion start restricted interest and financing expense Insertion end , net capital loss, restricted farm loss, farm loss or limited partnership loss, as the case may be, for a taxation year until
(i.1) in the case of a restricted interest and financing expense, the restricted interest and financing expenses,
End of inserted block(a) no amount in respect of the taxpayer’s non-capital loss, Insertion start restricted interest and financing expense Insertion end or farm loss for a taxation year that ended before that time is deductible by the taxpayer for a taxation year that ends after that time, except that the portion of the taxpayer’s non-capital loss, Insertion start restricted interest and financing expense Insertion end or farm loss, as the case may be, for a taxation year that ended before that time as may reasonably be regarded as the taxpayer’s loss from carrying on a business Insertion start or the taxpayer’s expense or loss incurred in the course of carrying on a business, as the case may be Insertion end , and, if a business was carried on by the taxpayer in that year, the portion of the non-capital loss as may reasonably be regarded as being in respect of an amount deductible under paragraph 110(1)(k) in computing the taxpayer’s taxable income for that year is deductible by the taxpayer for a particular taxation year that ends after that time
(b) an amount deducted under paragraph (1) Insertion start (a.1) or Insertion end (b) or section 110.6, or deductible under any of paragraphs 110(1)(d) to Insertion start (d.3), (f) Insertion end , (g) and (k), section 112 and subsections 113(1) and 138(6), in computing the taxpayer’s taxable income for the year, or
restricted interest and financing expense of a taxpayer for a taxation year means the amount determined by the formula
(13) Subsections (1) and (4) to (12) apply in respect of taxation years of a taxpayer that begin on or after October 1, 2023. However, subsections (1) to (10) also apply in respect of a taxation year of a taxpayer that begins before, and ends after, October 1, 2023 if
(a) any of the taxpayer’s three immediately preceding taxation years was, because of a transaction or event or a series of transactions or events, shorter than it would have been in the absence of that transaction, event or series; and
(b) it can reasonably be considered that one of the purposes of the transaction, event or series was to defer the application of paragraph 12(1)(l.2) of the Act, as enacted by subsection 2(1), or the application of section 18.2 or 18.21 of the Act, as enacted by subsection 7(1), to the taxpayer.
(14) Subsection (2) is deemed to have come into force on January 1, 2022.
(15) Subsection (3) is deemed to have come into force on March 28, 2023.
(a) the corporation is a financial institution at any time in the year; and
(b) the share
(i) is a mark-to-market property of the corporation for the year, or
(ii) would be a mark-to-market property of the corporation for the year if the share was held at any time in the year by the corporation.
End of inserted block(a) a share (other than a share of a financial institution) is deemed to be a mark-to-market property of the corporation for the year if the share
(i) is a tracking property of the corporation at any time in the year, or
(ii) would be a tracking property of the corporation if the share was held at any time in the year by the corporation; and
(b) a taxable preferred share is deemed not to be a mark-to-market property of the corporation for the year unless the share would be described in subparagraph (a)(i) or (ii) if paragraph (a) were read without reference to “(other than a share of a financial institution)”.
End of inserted block(c) financial institution, mark-to-market property and Insertion start tracking property Insertion end have the same meaning as in subsection 142.2(1).
(3) Subsections (1) and (2) apply in respect of dividends received after 2023.
deductible, in relation to an amount in respect of a payment, in computing relevant foreign income or profits, has the same meaning as in subsection 18.4(1). (déductible)
entity has the same meaning as in subsection 95(1). (entité)
equity interest has the same meaning as in subsection 18.4(1). (participation au capital)
foreign expense restriction rule has the same meaning as in subsection 18.4(1). (régle étrangère de restriction des dépenses)
foreign hybrid mismatch rule has the same meaning as in subsection 18.4(1). (règle étrangère d’asymétrie hybride)
foreign taxation year of an entity has the same meaning as in subsection 18.4(1). (année d’imposition étrangère)
relevant foreign income or profits of an entity for a foreign taxation year has the same meaning as in subsection 18.4(1). (revenus ou bénéfices étrangers pertinents)
End of inserted block(a) is an amount that is or can reasonably be expected to be deductible in computing
(i) relevant foreign income or profits, for a foreign taxation year, of
(A) the affiliate, or
(B) another entity (other than the corporation) because that entity has a direct or indirect equity interest in the affiliate, or
(ii) income or profits of the affiliate that are taken into account in determining relevant foreign income or profits of another entity for a foreign taxation year; or
(b) would, in the absence of any foreign hybrid mismatch rule or foreign expense restriction rule, be described in paragraph (a).
End of inserted block(a) the particular amount or portion of the particular amount, as the case may be, and
(b) the amount determined by the formula
(3) Subsections (1) and (2) apply in respect of any dividend received by a corporation resident in Canada on a share owned by the corporation of the capital stock of a foreign affiliate of the corporation on or after July 1, 2022, except that subsection 113(7) of the Act, as enacted by subsection (2), does not apply in respect of any dividend received before July 1, 2023.
relevant census means
(a) for the 2023 and 2024 taxation years, the 2016 census published by Statistics Canada; and
(b) in any other case, the last census published by Statistics Canada before the taxation year. (recensement pertinent)
End of inserted block(a) Insertion start 1.2 Insertion end , if there is a census metropolitan area, as determined in the Insertion start relevant Insertion end census, in the relevant province and the individual does not reside in a census metropolitan area at the beginning of the specified month, and
(3) Subsections (1) and (2) apply to the 2023 and subsequent taxation years.
(2) Subsection (1) applies to taxation years that end on or after April 7, 2022.
(b) if the corporation is a Canadian-controlled private corporation throughout the year Insertion start or a substantive CCPC at any time in the year Insertion end , the amount by which that portion of the corporation’s taxable income for the year that is subject to tax under subsection 123(1) exceeds the total of
(2) Subsection (1) applies to taxation years that end on or after April 7, 2022.
(a) 0.075, if the taxation year begins after 2021 and before Insertion start 2032 Insertion end ,
(b) 0.05625, if the taxation year begins after Insertion start 2031 Insertion end and before Insertion start 2033 Insertion end ,
(c) 0.0375, if the taxation year begins after Insertion start 2032 Insertion end and before Insertion start 2034 Insertion end ,
(d) 0.01875, if the taxation year begins after Insertion start 2033 Insertion end and before Insertion start 2035 Insertion end , and
(e) nil, in any other case;
(a) 0.045, if the taxation year begins after 2021 and before Insertion start 2032 Insertion end ,
(b) 0.03375, if the taxation year begins after Insertion start 2031 Insertion end and before Insertion start 2033 Insertion end ,
(c) 0.0225, if the taxation year begins after Insertion start 2032 Insertion end and before Insertion start 2034 Insertion end ,
(d) 0.01125, if the taxation year begins after Insertion start 2033 Insertion end and before Insertion start 2035 Insertion end , and
(e) nil, in any other case; and
(b) the taxpayer’s at-risk amount in respect of the partnership, Insertion start less the total of all amounts required by a clean economy allocation provision (as defined in subsection 127.47(1)) to be added in computing a clean economy tax credit (as defined in subsection 127.47(1)) of the taxpayer Insertion end at the end of that fiscal period.
government assistance means assistance from a government, municipality or other public authority whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or as any other form of assistance, other than as a deduction under subsection (5) or (6) Insertion start or a deemed payment on account of tax payable under subsection 127.44(2) Insertion end ; (aide gouvernementale)
government assistance means assistance from a government, municipality or other public authority whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or as any other form of assistance, other than as a deduction under subsection (5) or (6) or a deemed payment on account of tax payable under subsection 127.44(2) Insertion start or 127.45(2) Insertion end ; (aide gouvernementale)
non-government assistance means an amount ( Insertion start other than an amount received directly from a government, municipality or other public authority Insertion end ) that would be included in income under paragraph 12(1)(x) if that paragraph were read without reference to subparagraphs 12(1)(x)(v) to (vii); (aide non gouvernementale)
(5) Subsections (1) and (2) are deemed to have come into force on January 1, 2022.
(6) Subsection (3) is deemed to have come into force on March 28, 2023.
captured carbon means captured carbon dioxide that
(a) would otherwise be released into the atmosphere; or
(b) is captured directly from the ambient air. (carbone capté)
CCUS process means the process of carbon capture, utilization and storage that includes the
(a) capture of carbon dioxide
(i) that would otherwise be released into the atmosphere, or
(ii) directly from the ambient air; and
(b) storage or use of the captured carbon. (processus de CUSC)
CCUS project means a project that is intended to support a CCUS process by
(a) capturing carbon dioxide
(i) that would otherwise be released into the atmosphere, or
(ii) directly from the ambient air;
(b) transporting captured carbon; or
(c) storing or using captured carbon. (projet de CUSC)
CCUS tax credit means an amount deemed under subsection (2) to have been paid by a taxpayer on account of its tax payable under this Part for the year. (crédit d’impôt pour le CUSC)
dedicated geological storage, in respect of a CCUS project, means a geological formation that is located in a jurisdiction that was a designated jurisdiction at the time that the first qualified CCUS expenditure was made in respect of the project and that is, at the time a relevant expenditure is incurred,
(a) capable of permanently storing captured carbon;
(b) authorized and regulated for the storage of captured carbon under the laws of the designated jurisdiction; and
(c) a formation in which no captured carbon is used for enhanced oil recovery. (stockage géologique dédié)
designated jurisdiction means
(a) the provinces of British Columbia, Saskatchewan and Alberta; and
(b) any other jurisdiction within Canada (including the exclusive economic zone of Canada) or the United States for which a designation by the Minister of the Environment under subsection (13) is in effect. (juridiction désignée)
dual-use equipment means equipment that is part of a CCUS project of a taxpayer and that is described in any of the following paragraphs (and, in the case of property acquired before the first day of commercial operations of the CCUS project, is verified by the Minister of Natural Resources as being described in any of the following paragraphs):
(a) equipment that is not used for natural gas processing or acid gas injection, and that
(i) generates electrical energy, heat energy or a combination of electrical and heat energy, if more than 50% of either the electrical energy or heat energy that is expected to be produced over the total CCUS project review period, based on the most recent project plan, is expected (not including equipment that supports the qualified CCUS project indirectly by way of an electrical utility grid) to directly support
(A) a qualified CCUS project, unless the equipment uses fossil fuels and emits carbon dioxide that is not subject to capture by a qualified CCUS project, or
(B) hydrogen production from electrolysis or natural gas as long as emissions are abated by a qualified CCUS project, unless the equipment uses fossil fuels and emits carbon dioxide that is not subject to capture by a qualified CCUS project,
(ii) delivers, collects, recovers, treats or recirculates water, or a combination of any of those activities, in support of a qualified CCUS project,
(iii) is transmission equipment that directly transmits electrical energy from a system described in subparagraph (a)(i) to a qualified CCUS project and more than 50% of the electrical energy to be transmitted by the equipment over the total CCUS project review period, based on the most recent project plan, is expected to support the qualified CCUS project or hydrogen production from electrolysis or natural gas as long as emissions are abated by a qualified CCUS project, or
(iv) is distribution equipment that distributes electrical or heat energy;
(b) equipment that is physically and functionally integrated with the equipment described in paragraph (a) (for greater certainty, excluding construction equipment, furniture, office equipment and vehicles) and that is ancillary equipment used solely to support the functioning of equipment described in paragraph (a) within a CCUS process as part of
(i) an electrical system,
(ii) a fuel supply system,
(iii) a liquid delivery and distribution system,
(iv) a cooling system,
(v) a process material storage and handling and distribution system,
(vi) a process venting system,
(vii) a process waste management system, or
(viii) a utility air or nitrogen distribution system;
(c) equipment that is
(i) used as part of a control, monitoring or safety system solely to support the equipment described in paragraphs (a) or (b),
(ii) a building or other structure all or substantially all of which is used, or to be used, for the installation or operation of equipment described in paragraph (a), (b) or subparagraph (i), or
(iii) used solely to convert another property that would not otherwise be described in paragraph (a) or (b) or subparagraphs (i) and (ii) if the conversion causes the other property to satisfy the description in the paragraphs (a) or (b) or subparagraphs (i) or (ii); or
(d) equipment used solely to refurbish property described in paragraphs (a) or (b) or subparagraphs (c)(i) and (ii) that is part of the CCUS project of the taxpayer. (matériel à double usage)
eligible use means
(a) the storage of captured carbon in dedicated geological storage; or
(b) the use of captured carbon in producing concrete in Canada or the United States using a qualified concrete storage process. (utilisation admissible)
first day of commercial operations means the day that is 120 days after the day on which captured carbon dioxide is first delivered to a carbon transportation, carbon storage or carbon use system for the purpose of storage or use on an ongoing operational basis. (premier jour des activités commerciales)
ineligible use means
(a) the emission of captured carbon into the atmosphere, other than
(i) for the purposes of system integrity or safety, or
(ii) incidental emission made in the ordinary course of operations;
(b) the storage or use of captured carbon for enhanced oil recovery; and
(c) any other storage or use that is not an eligible use. (utilisation non admissible)
non-government assistance has the same meaning as in subsection 127(9). (aide non gouvernementale)
preliminary CCUS work activity means an activity that is preliminary to the acquisition, construction, fabrication or installation by or on behalf of a taxpayer of property described in Class 57 or 58 in Schedule II to the Income Tax Regulations in respect of the taxpayer’s CCUS project including, but not limited to, a preliminary activity that is
(a) obtaining permits or regulatory approvals;
(b) performing front-end design or engineering work, including front-end engineering design studies (or equivalent studies as determined by the Minister of Natural Resources) but excluding detailed design or engineering work in relation to specific property included in Class 57 or Class 58;
(c) conducting feasibility studies or pre-feasibility studies (or equivalent studies as determined by the Minister of Natural Resources);
(d) conducting environmental assessments; or
(e) clearing or excavating land. (travaux préliminaires de CUSC)
projected eligible use percentage, in respect of a CCUS project, for a period is the amount, expressed as a percentage, determined by the formula
project plan means a plan for a CCUS project that
(a) reflects a front-end engineering design study (or an equivalent study as determined by the Minister of Natural Resources) for the CCUS project;
(b) describes the quantity of captured carbon that the CCUS project is expected to support for storage or use in each calendar year over its total CCUS project review period, in
(i) eligible use, and
(ii) ineligible use;
(c) contains information required in guidelines published by the Minister of Natural Resources; and
(d) is filed with the Minister of Natural Resources, in the form and manner determined by that Minister, before the project’s first day of commercial operations. (plan de projet)
qualified carbon capture expenditure of a taxpayer for a taxation year means an amount that is the portion of an expenditure incurred by the taxpayer to acquire a property in the year, in respect of a qualified CCUS project of the taxpayer, determined by the formula
(a) the capital cost of property described in (and, in the case of property acquired before the first day of commercial operations of the project, verified by the Minister of Natural Resources as being property described in)
(i) paragraph (a) of Class 57 in Schedule II to the Income Tax Regulations, or
(ii) any of paragraphs (d) to (g) of Class 57 in Schedule II to the Income Tax Regulations in relation to equipment described in paragraph (a) of that Class, or
(b) the proportion of the capital cost of dual-use equipment that,
(i) if the equipment is described in subparagraph (a)(i) of the definition dual-use equipment in this subsection, or is acquired in relation to such equipment, the amount of energy expected to be produced for use in a qualified CCUS project over the project’s total CCUS project review period is of the total amount of energy expected to be produced by the equipment in that period (determined without regard to energy produced and consumed by the equipment in the process of producing energy), based on the project’s most recent project plan,
(ii) if the equipment is described in subparagraph (a)(ii) of the definition dual-use equipment in this subsection, or is acquired in relation to such equipment, the mass of water expected to be returned from a qualified CCUS project over the project’s total CCUS project review period is of the total mass of water expected to be returned to the equipment in that period, based on the project’s most recent project plan,
(iii) if the equipment is described in subparagraph (a)(iii) of the definition dual-use equipment in this subsection, or is acquired in relation to such equipment, the amount of electrical energy expected to be transmitted by the equipment for use in a qualified CCUS project over the total CCUS project review period is of the total amount of electrical energy expected to be transmitted by the equipment in that period (determined without regard to electrical energy consumed by the equipment in the process of transmission), based on the project’s most recent project plan, and
(iv) if the equipment is described in subparagraph (a)(iv) of the definition dual-use equipment in this subsection, or is acquired in relation to such equipment, the amount of electrical or heat energy expected to be distributed by the equipment (or if it is distribution equipment that expands the capacity of existing equipment, the electrical or heat energy expected to be distributed by the existing and new equipment) for use in a qualified CCUS project over the total CCUS project review period is of the total amount of electrical or heat energy expected to be distributed by the equipment (or the existing and new equipment) in that period (determined without regard to energy consumed by the equipment in the process of distribution), based on the project’s most recent project plan;
(a) if the time of the expenditure is after the first project period, nil, or
(b) in any other case, the projected eligible use percentage for the first project period;
(a) if the time of the expenditure is after the second project period, nil, or
(b) in any other case, the projected eligible use percentage for the second project period;
(a) if the time of the expenditure is after the third project period, nil, or
(b) in any other case, the projected eligible use percentage for the third project period;
(a) if the time of the expenditure is before the second project period, 0.25,
(b) if the time of the expenditure is during the second project period, 0.33,
(c) if the time of the expenditure is during the third project period, 0.5, and
(d) if the time of the expenditure is during the fourth project period, 1. (dépense admissible pour le captage du carbone)
qualified carbon storage expenditure of a taxpayer for a taxation year means an amount that is the capital cost incurred by the taxpayer to acquire in the year, in respect of a qualified CCUS project of the taxpayer, a property (other than property situated outside of Canada) that is
(a) expected, based on the qualified CCUS project’s most recent project plan before the time the expenditure is incurred, to support storage of captured carbon solely in a manner described in paragraph (a) of the definition of eligible use; and
(b) described in (and, in the case of property acquired before the first day of commercial operations of the project, verified by the Minister of Natural Resources as being property described in)
(i) paragraph (c) of Class 57 in Schedule II to the Income Tax Regulations, or
(ii) any of paragraphs (d) to (g) of Class 57 in Schedule II to the Income Tax Regulations in relation to equipment described in paragraph (c) of that Class. (dépense admissible pour le stockage du carbone)
qualified carbon transportation expenditure of a taxpayer for a taxation year means an amount that is the portion of an expenditure incurred by the taxpayer to acquire a property in the year in respect of a qualified CCUS project of the taxpayer, determined by the formula
(a) paragraph (b) of Class 57 in Schedule II to the Income Tax Regulations, or
(b) any of paragraphs (d) to (g) of Class 57 in Schedule II to the Income Tax Regulations in relation to equipment described in paragraph (b) of that Class;
(a) if the time of the expenditure is after the first project period, nil, or
(b) in any other case, the projected eligible use percentage for the first project period;
(a) if the time of the expenditure is after the second project period, nil, or
(b) in any other case, the projected eligible use percentage for the second project period;
(a) if the time of the expenditure is after the third project period, nil, or
(b) in any other case, the projected eligible use percentage for the third project period;
(a) if the time of the expenditure is before the second project period, 0.25,
(b) if the time of the expenditure is during the second project period, 0.33,
(c) if the time of the expenditure is during the third project period, 0.5, and
(d) if the time of the expenditure is during the fourth project period, 1. (dépense admissible pour le transport du carbone)
qualified carbon use expenditure of a taxpayer for a taxation year means an amount that is the capital cost incurred by the taxpayer to acquire in the year, in respect of a qualified CCUS project of the taxpayer, a property (other than property situated outside of Canada) that is
(a) described in (and, in the case of property acquired before the first day of commercial operations of the project, verified by the Minister of Natural Resources as being property described in) any of paragraphs (a) to (e) of Class 58 in Schedule II to the Income Tax Regulations; and
(b) expected, based on the qualified CCUS project’s most recent project plan before the time the expenditure is incurred, to support storage or use of captured carbon solely in a manner described in paragraph (b) of the definition of eligible use. (dépense admissible pour l’utilisation du carbone)
qualified CCUS expenditure means a
(a) qualified carbon capture expenditure;
(b) qualified carbon transportation expenditure;
(c) qualified carbon storage expenditure; or
(d) qualified carbon use expenditure. (dépense de CUSC admissible)
qualified CCUS project means a CCUS project of a taxpayer that meets the following conditions:
(a) it is expected, based on the project’s most recent project plan, to support the capture of carbon dioxide in Canada for a period that is at least equal to the total CCUS project review period for the project;
(b) an initial project evaluation has been issued by the Minister of Natural Resources, in the form and manner determined by the Minister of Natural Resources, in respect of the project;
(c) based on the most recent project plan for the project, its projected eligible use percentage equals or exceeds 10% in each of the following periods:
(i) if the first project period begins after September of a calendar year, the period beginning on the first day of commercial operations and ending on December 31 of the following calendar year, and
(ii) each calendar year of the project’s total CCUS project review period, other than a period that includes a year referred to in subparagraph (i); and
(d) it is not a project that is
(i) operated to service a unit (as defined under the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations) for which the commissioning date (as defined under the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations) was on or before April 7, 2022, and
(ii) undertaken for the purpose of complying with emission standards that apply, or will apply, under the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations. (projet de CUSC admissible)
qualified concrete storage process means a process evaluated against the ISO 14034:2016 standard Environmental management — Environmental technology verification for which a validation statement confirming that at least 60% of the captured carbon that is injected into concrete is expected to be mineralized and permanently stored in the concrete has been issued by a professional or organization that
(a) is accredited as a verification body, under ISO 14034:2016, Environmental management – Environmental technology verification and ISO/IEC 17020:2012, Conformity assessment — Requirements for the operation of various types of bodies performing inspection, by the Standards Council of Canada, the ANSI National Accreditation Board (U.S.) or any other accreditation organization that is a member of the International Accreditation Forum; and
(b) meets the requirements of a third-party inspection body described in ISO/IEC 17020:2012, Conformity assessment — Requirements for the operation of various types of bodies performing inspection. (processus de stockage dans le béton admissible)
qualifying taxpayer means a taxable Canadian corporation. (contribuable admissible)
specified percentage means, in respect of a
(a) qualified carbon capture expenditure if incurred to capture carbon
(i) directly from ambient air
(A) after 2021 and before 2031, 60%,
(B) after 2030 and before 2041, 30%, or
(C) after 2040, 0%, or
(ii) other than directly from ambient air
(A) after 2021 and before 2031, 50%,
(B) after 2030 and before 2041, 25%, or
(C) after 2040, 0%; and
(b) qualified carbon transportation expenditure, qualified carbon storage expenditure or qualified carbon use expenditure if incurred
(i) after 2021 and before 2031, 37 1/2%,
(ii) after 2030 and before 2041, 18 3/4%, or
(iii) after 2040, 0%. (pourcentage déterminé)
total CCUS project review period, in respect of a CCUS project, means the period beginning on the first day of commercial operations of the project and ending on the last day of the fourth project period. (période totale d’examen du projet de CUSC)
End of inserted block(a) the amount, if any, by which the taxpayer’s cumulative CCUS development tax credit for the year exceeds its cumulative CCUS development tax credit for the immediately preceding taxation year, and
(b) the taxpayer’s CCUS refurbishment tax credit for the year.
End of inserted block(a) a qualified CCUS expenditure incurred in the year or a previous taxation year by the taxpayer multiplied by the applicable specified percentage; or
(b) an amount required because of subsection (11) to be added in computing the taxpayer’s cumulative CCUS development tax credit at the end of the year or a previous year.
End of inserted block(a) a qualified CCUS expenditure incurred in the year by the taxpayer multiplied by the applicable specified percentage; or
(b) an amount required because of subsection (11) to be added in computing the taxpayer’s CCUS refurbishment tax credit at the end of the year.
End of inserted block(a) the Minister of Natural Resources determines that there has been a material change to the project and requests that the taxpayer file a revised project plan for the project; or
(b) there has been a reduction (as compared to the most recent project plan for the project) of more than five percentage points in the projected eligible use percentage in respect of the project during any project period.
End of inserted block(a) the Minister may, in consultation with the Minister of Natural Resources, determine that one or more CCUS projects is one project or multiple projects
(i) at any time before an initial project evaluation of a CCUS project has been issued by the Minister of Natural Resources, or
(ii) if the Minister of Natural Resources has requested the filing of a revised project plan for the project, after the revised project plan has been submitted, but before a revised project evaluation has been issued by the Minister of Natural Resources in respect of the revised project plan,
(b) any determination under paragraph (a) is deemed to result in the CCUS project or CCUS projects, as the case may be, being one project or multiple projects, as the case may be;
(c) for each project determined under paragraph (a), a project plan shall be filed by a taxpayer with the Minister of Natural Resources (in the form and manner determined by the Minister of Natural Resources) on or before the day that is 180 days after the determination is made; and
(d) the Minister of Natural Resources may request from a taxpayer all reasonable documentation and information necessary for the Minister of Natural Resources to fulfill a responsibility under this section, including final detailed engineering designs, and may refuse to verify an expenditure or issue an initial project evaluation or a revised project evaluation under this section if such documentation or information is not provided by the taxpayer on or before the day that is 180 days after it was requested.
End of inserted block(a) the capital cost to a taxpayer of a property of Class 57 or 58 in Schedule II to the Income Tax Regulations shall be
(i) determined without reference to subsections 13(7.1) and (7.4), and
(ii) reduced by the amount of any non-government assistance that, at the time of the filing of the taxpayer’s return of income under this Part for the taxation year, the taxpayer has received, is entitled to receive or can reasonably be expected to receive in respect of the property;
(b) the amount of a qualified CCUS expenditure of a taxpayer in a taxation year in respect of a CCUS project shall not include
(i) any amount in respect of an expenditure incurred by the taxpayer before 2022 or after 2040,
(ii) any amount in respect of any expenditure incurred
(A) to acquire property that has been used for any purpose by any person or partnership before it was acquired by the taxpayer,
(B) for which a tax credit was previously deducted under this section, by any person in respect of the property to which the expenditure relates (other than an expenditure for repair or replacement of that property), or
(C) for which an investment tax credit is claimed under section 127 or a clean technology investment tax credit is claimed under section 127.45,
(iii) any amount in respect of an expenditure incurred for a preliminary CCUS work activity,
(iv) any amount that has, by virtue of section 21, been added to the cost of a property,
(v) an expenditure that is incurred by a taxpayer on or after the first day of commercial operations of the CCUS project to the extent that the total of all such amounts exceeds 10% of the total of all qualified CCUS expenditures incurred by the taxpayer before the first day of commercial operations of the CCUS project, or
(vi) except where subsection 211.92(11) applies, an expenditure incurred by a taxpayer to acquire a property that is disposed of, or exported from Canada, by the taxpayer in the same taxation year as it was acquired;
(c) except for the purposes of subparagraph (b)(i), and subject to subsection (12), if a taxpayer has acquired property outside Canada, the expenditure is deemed to have been incurred, and the property acquired, at the time it is imported into Canada;
(d) subsections 127(11.6) to (11.8) apply in this section in respect of an expenditure or cost to a taxpayer except that
(i) the reference in subsection 127(11.6) to subsection 127(11.5) shall be read as a reference to section 127.44,
(ii) the reference in subsection 127(11.6) to subsection 127(26) shall be read as a reference to subsection 127.44(12), and
(iii) the term “qualified expenditure” is to be read as “qualified CCUS expenditure”;
(e) if an expenditure of a taxpayer would be a qualified CCUS expenditure, except that the expenditure is incurred in a different taxation year from the year in which the related property is acquired, the expenditure is deemed to be incurred, and the property is deemed to be acquired, in the later of the two years;
(f) for the purposes of determining whether a process is a CCUS process, whether a property is described in Class 57 or 58 of Schedule II to the Income Tax Regulations or whether a property is dual-use equipment, the technical guide published by the Department of Natural Resources shall apply conclusively with respect to engineering and scientific matters;
(g) if the taxpayer has failed to file a revised project plan required to be filed under subsection (6) by the deadline in that subsection,
(i) subject to subparagraph (ii), a taxpayer’s projected eligible use percentage for a CCUS project is deemed to be nil for the total CCUS project review period until such time as the taxpayer has filed the revised project plan, and
(ii) once the taxpayer has filed the revised project plan, subparagraph (i) is deemed never to have applied.
End of inserted block(a) not to have been incurred in the year; and
(b) to be incurred at the time it is paid.
End of inserted block(a) if the Minister of the Environment determines that a jurisdiction within Canada or the United States has sufficient environmental laws and enforcement governing the permanent storage of captured carbon
(i) the Minister of the Environment may designate the jurisdiction for the purposes of this section and Part XII.7,
(ii) the designation under subparagraph (i) shall specify the time at and after which it is in effect, which time may, for greater certainty, precede the time at which the designation is made, and
(iii) the Minister of the Environment shall publish on a website maintained by the Government of Canada the designation referred to in subparagraph (i); and
(b) the provinces of British Columbia, Saskatchewan and Alberta are deemed to have been designated by the Minister of the Environment in accordance with this subsection.
End of inserted block(a) the Minister of the Environment may revoke the designation of the jurisdiction designated under subsection (13);
(b) the revocation under paragraph (a) shall specify the time at and after which it is in effect, which time shall not begin sooner than 30 days after the revocation is made; and
(c) the Minister of the Environment shall publish on a website maintained by the Government of Canada the revocation referred to in paragraph (a).
End of inserted block(2) Subsection (1) is deemed to have come into force on January 1, 2022, except that, before March 28, 2023, subsection 127.44(3) of the Act, as enacted by subsection (1), is to be read without reference to section 127.45 and clause 127.44(9)(b)(ii)(C) of the Act, as enacted by subsection (1), is to be read without the words “or a clean technology investment tax credit is claimed under section 127.45”.
clean technology investment tax credit of a qualifying taxpayer for a taxation year means
(a) the total of all amounts each of which is the specified percentage of the capital cost to the taxpayer of clean technology property acquired by the taxpayer in the year; and
(b) the total of amounts required by subsection (8) to be added in computing the taxpayer’s clean technology investment tax credit at the end of the year. (crédit d’impôt à l’investissement dans les technologies propres)
clean technology property means property
(a) situated in Canada (including property described in subparagraph (d)(v) or (xiv) of Class 43.1 in Schedule II to the Income Tax Regulations that is installed in the exclusive economic zone of Canada) and intended for use exclusively in Canada;
(b) that has not been used, or acquired for use or lease, for any purpose whatever before it was acquired by the taxpayer;
(c) that, if it is to be leased by the taxpayer to another person or partnership, is
(i) leased to a qualifying taxpayer or a partnership all the members of which are taxable Canadian corporations, and
(ii) leased in the ordinary course of carrying on a business in Canada by the taxpayer whose principal business is selling or servicing property of that type, or whose principal business is leasing property, lending money, purchasing conditional sales contracts, accounts receivable, bills of sale, chattel mortgages or hypothecary claims on movables, bills of exchange or other obligations representing all or part of the sale price of merchandise or services, or any combination thereof; and
(d) that is
(i) equipment used to generate electricity from solar, wind and water energy that is described in subparagraph (d)(ii), (iii.1), (v), (vi) or (xiv) of Class 43.1 in Schedule II to the Income Tax Regulations,
(ii) stationary electricity storage equipment that is described in subparagraph (d)(xviii) or (xix) of Class 43.1 in Schedule II to the Income Tax Regulations, but excluding equipment that uses any fossil fuel in operation,
(iii) active solar heating equipment, air-source heat pumps and ground-source heat pumps that are described in subparagraph (d)(i) of Class 43.1 in Schedule II to the Income Tax Regulations,
(iv) a non-road zero-emission vehicle described in Class 56 in Schedule II to the Income Tax Regulations and charging or refuelling equipment described in subparagraph (d)(xxi) of Class 43.1 in Schedule II to the Income Tax Regulations or subparagraph (b)(ii) of Class 43.2 in Schedule II to the Income Tax Regulations that in each case is used primarily for such vehicles,
(v) equipment used exclusively for the purpose of generating electrical energy or heat energy, or a combination of electrical energy and heat energy, solely from geothermal energy, that is described in subparagraph (d)(vii) of Class 43.1 in Schedule II to the Income Tax Regulations, but excluding any equipment that is part of a system that extracts fossil fuel for sale,
(vi) concentrated solar energy equipment, or
(vii) a small modular nuclear reactor. (bien de technologie propre)
concentrated solar energy equipment means equipment, other than excluded equipment, used all or substantially all to generate heat or electricity, or a combination of heat and electricity, exclusively from concentrated sunlight, including
(a) reflectors and related solar tracking systems;
(b) thermal receivers;
(c) thermal energy storage equipment;
(d) electrical generating equipment;
(e) heat transfer fluid systems;
(f) electrical energy storage equipment;
(g) transmission equipment;
(h) equipment for the distribution of heat energy;
(i) structures whose sole function is to support or house concentrated solar energy equipment; and
(j) ancillary instrumentation and controls including weather monitoring systems. (matériel d’énergie solaire concentrée)
excluded equipment means
(a) auxiliary heating or electrical generating equipment that uses any fossil fuel;
(b) buildings or structures other than those structures described in paragraph (i) of the definition of concentrated solar energy equipment;
(c) distribution equipment;
(d) property included in Class 10 in Schedule II to the Income Tax Regulations; and
(e) property that would be included in Class 17 in Schedule II to the Income Tax Regulations if that Class were read without reference to its paragraph (a.1). (matériel non admissible)
government assistance has the meaning assigned by subsection 127(9). (aide gouvernementale)
non-clean technology use means a use of a particular property at a particular time that would, if the property were acquired at that time, result in the property ceasing to be a clean technology property, determined without reference to paragraph (b) of the definition clean technology property in this subsection. (utilisation non concernée par la technologie propre)
non-government assistance has the meaning assigned by subsection 127(9). (aide non gouvernementale)
qualifying taxpayer means a taxable Canadian corporation or a mutual fund trust that is a real estate investment trust (as defined in subsection 122.1(1)). (contribuable admissible)
small modular nuclear reactor means equipment that is used all or substantially all to generate electrical energy or heat energy, or a combination of electrical energy and heat energy, from nuclear fission — including reactors, reactor vessels, reactor control rods, moderators, cooling systems, control systems, nuclear fission fuel handling equipment, containment structures, electrical generating equipment and equipment for the distribution of heat energy — that
(a) is part of a system that has a gross rated generating capacity not exceeding 300 megawatts electric, or an energy balance equivalent gross rated generating capacity of electricity or heat equivalent of 1,000 megawatts thermal;
(b) is part of a system all or substantially all of which is comprised of modules that are factory-assembled and transported pre-built to the installation site; and
(c) is not
(i) nuclear fission fuel,
(ii) equipment for nuclear waste disposal and nuclear waste disposal sites,
(iii) transmission equipment,
(iv) distribution equipment,
(v) property included in Class 10 in Schedule II to the Income Tax Regulations, or
(vi) property that would be included in Class 17 in Schedule II to the Income Tax Regulations if that Class were read without reference to its paragraph (a.1). (petit réacteur modulaire nucléaire)
specified percentage means, in respect of a clean technology property of the taxpayer that is acquired
(a) before March 28, 2023, determined without reference to subsection (4), nil;
(b) on or after March 28, 2023 and before January 1, 2034, 30%;
(c) after December 31, 2033 and before January 1, 2035, 15%; and
(d) after December 31, 2034, nil. (pourcentage déterminé)
End of inserted block(a) not include any amount in respect of a capital property
(i) for which an amount was previously deducted under this section by any person,
(ii) in respect of which a CCUS tax credit was deducted under section 127.44 by any person, or
(iii) that has, by virtue of section 21, been added to the cost of a property;
(b) be determined without reference to subsections 13(7.1) and (7.4), less the amount of any government assistance or non-government assistance that can reasonably be considered to be in respect of the property and that, at the time of the filing of the taxpayer’s return of income under this Part for the taxation year in which the property was acquired by the taxpayer or partnership, the taxpayer or partnership has received, is entitled to receive or can reasonably be expected to receive; and
(c) be determined with reference to subsections 127(11.6) to (11.8) in respect of an expenditure or cost to a taxpayer except that
(i) the reference in subsection 127(11.6) to subsection 127(11.5) is to be read as a reference to section 127.45,
(ii) the reference in subsection 127(11.6) to subsection 127(26) is to be read as a reference to subsection 127.45(9), and
(iii) the term “qualified expenditure” is to be read as an expenditure eligible to be added to the capital cost of a clean technology property.
End of inserted block(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.
End of inserted block(a) a taxpayer acquired a clean technology property in the year or any of the preceding 10 calendar years;
(b) the taxpayer became entitled to a clean technology investment tax credit in respect of the capital cost, or a portion of the capital cost, of the particular property; and
(c) in the year, the particular property (or another property that incorporates the particular property) is converted to a non-clean technology use, is exported from Canada or is disposed of without having been previously exported or converted to a non-clean technology use.
End of inserted block(a) the amount of the taxpayer’s clean technology investment tax credit in respect of the particular property, and
(b) the amount determined by the formula
(i) in the case where the particular property is disposed of to a person who deals at arm’s length with the taxpayer, the proceeds of disposition of the property, or
(ii) in the case where the particular property is disposed of to a person who does not deal at arm’s length with the taxpayer, is converted to a non-clean technology use or is exported from Canada, the fair market value of the property, and
(a) the partnership acquired a particular clean technology property in the fiscal period or in any of the 10 preceding calendar years;
(b) the cost, or a portion of the cost, of the particular property is included in an amount, a percentage of which can reasonably be considered to have been included in computing the amount determined under subsection (8) in respect of the partnership at the end of a fiscal period; and
(c) in the fiscal period, the particular property (or another property that incorporates the particular property) is converted to a non-clean technology use, is exported from Canada or is disposed of without having been previously exported or converted to a non-clean technology use.
End of inserted block(a) the amount that can reasonably be considered to have been included in respect of the particular property in computing the amount determined under subsection (8) in respect of the partnership, and
(b) the percentage described in paragraph (16)(b) of
(i) where the particular property (or the other property) is disposed of to a person who deals at arm’s length with the partnership, the proceeds of disposition of the property, and
(ii) in any other case, the fair market value of the particular property (or the other property) at the time of the conversion, export or disposition.
End of inserted block(2) Subsection (1) is deemed to have come into force on March 28, 2023.
apprenticeship requirements means the requirements set out in subsection (5). (exigences à l’égard d’apprentis)
benefits means vacation, pension, health and welfare benefits required to be provided by employers to or for employees under an eligible collective agreement. (avantages sociaux)
covered worker means an individual (other than a trust)
(a) who is engaged in the preparation or installation of specified property at a designated work site as an employee of an incentive claimant or of another person or partnership;
(b) whose work or duties in respect of the designated work site are primarily manual or physical in nature; and
(c) who is not
(i) an administrative, clerical or executive employee, or
(ii) a business visitor to Canada as described in section 187 of the Immigration and Refugee Protection Regulations. (travailleur visé)
designated work site in a taxation year of an incentive claimant means a work site where specified property of an incentive claimant is located during the year and includes the site of a CCUS project (as defined in section 127.44) of the incentive claimant. (chantier désigné)
eligible collective agreement means
(a) in Quebec,
(i) a collective agreement negotiated in accordance with applicable provincial law, or
(ii) a prescribed agreement; and
(b) in any other case,
(i) the most recent multi-employer collective bargaining agreement negotiated with a trade union that is an affiliate of Canada’s Building Trades Unions for a given trade in a region or province,
(ii) a project labour agreement established with a trade union in accordance with applicable provincial law that covers the work associated with the investments eligible for specified tax credits and that provides for wages and benefits for covered workers in a given trade that are at least equal to the regular wages (without taking into account overtime) and benefits provided for covered workers in an agreement described in subparagraph (i), or
(iii) a prescribed agreement. (convention collective admissible)
incentive claimant means a person that, or a partnership at least one member of which, plans to claim or has claimed a specified tax credit for a taxation year. (demandeur d’incitatif)
installation taxation year, in respect of a specified tax credit, means a taxation year during which preparation or installation of specified property occurs. (année d’imposition de l’installation)
prevailing wage requirements means the requirements set out in subsection (3). (exigences relatives au salaire prévalant)
Red Seal trade means, for a province using the Red Seal Program for a particular trade, the relevant Red Seal trade managed by the Canadian Council of Directors of Apprenticeship and, in any other case, an equivalent provincially registered trade. (métier désigné Sceau rouge)
Red Seal worker means a covered worker whose duties are, or are equivalent to, those duties normally performed by workers in a Red Seal trade. (travailleur Sceau rouge)
reduced tax credit rate means the regular tax credit rate minus 10 percentage points. (taux du crédit d’impôt réduit)
regular tax credit rate means the specified percentage (as defined in subsections 127.44(1) and 127.45(1), as the case may be). (taux du crédit d’impôt régulier)
specified property means property all or a portion of the cost of which qualifies for a specified tax credit. (bien déterminé)
specified tax credit means the CCUS tax credit under section 127.44 and the clean technology investment tax credit under section 127.45. (crédit d’impôt déterminé)
End of inserted block(a) if prescribed circumstances exist, prescribed conditions; and
(b) in any other case, the following conditions:
(i) each covered worker at a designated work site of an incentive claimant must be compensated for their work on the preparation or installation of specified property
(A) in accordance with the terms of an eligible collective agreement that applies to the worker, or
(B) in an amount that is at least equal to the amount of the regular wages (without taking into account overtime) and benefits as specified in the eligible collective agreement that most closely aligns with the covered worker’s experience level, tasks and location, calculated on a per-hour or similar basis;
(ii) the incentive claimant attests, in prescribed form and manner, that it has met the prevailing wage requirement in subparagraph (i) for its own employees who are covered workers, if any, and that it has taken reasonable steps to ensure that any covered workers employed by any other person or partnership at the designated work site are compensated in accordance with subparagraph (i); and
(iii) it has communicated, either in a poster or notice, in a manner readily visible to and accessible by covered workers at the designated work site or by electronic means, a notice confirming that the work site is a work site subject to prevailing wage requirements in relation to covered workers, including a plain language explanation of what that means for workers and information regarding how to report failures to pay prevailing wages to the Minister.
End of inserted block(a) subject to paragraph (b), the incentive claimant makes reasonable efforts to ensure that apprentices registered in a Red Seal trade work at least 10% of the total hours that are worked during the year by Red Seal workers at a designated work site of the incentive claimant on the preparation or installation of specified property;
(b) if an applicable law or collective agreement that specifies a maximum ratio of apprentices to journeypersons, or otherwise restricts the number of apprentices employed at a designated work site, prevents the condition in paragraph (a) from being met, the incentive claimant makes reasonable efforts to ensure that the highest possible percentage of the total labour hours, performed during the year by Red Seal workers on the preparation or installation of specified property, is performed by apprentices registered in a Red Seal trade while respecting the applicable labour law or collective agreement; and
(c) the incentive claimant attests in prescribed form and manner that it has met the apprenticeship requirements in paragraph (a) or (b) in respect of covered workers at the designated work site.
End of inserted block
(a) the incentive claimant is not entitled to the regular tax credit rate, and is entitled to not more than the reduced tax credit rate, for the specified tax credit; and
(b) the incentive claimant is liable to a penalty for the claim year equal to the amount determined by the formula
(a) is deemed to be
(i) salary and wages of the worker for the year in which it is received, and
(ii) deductible in computing income by the payor for the year in which it is paid; and
(b) does not qualify for any specified tax credit.
End of inserted block(a) at least every four months, the incentive claimant
(i) posts a bona fide job advertisement, seeking sufficient apprentices to perform those hours of labour in respect of the designated work site, that
(A) includes a commitment to facilitate participation of apprentices in a Red Seal trade program and a statement that the job opportunity is open to both existing employees and new hires, and
(B) is open and readily accessible on the Job Bank website of the Government of Canada and at least two other websites either
(I) on a continuous basis throughout the year, or
(II) for at least 30 days from the time of posting,
(ii) communicates with a trade union (which, if the designated work site is in Quebec, is a trade union recognized under applicable provincial law and, if the designated work site is outside of Quebec, is an affiliate of Canada’s Building Trades Unions) and at least one secondary school or post-secondary educational institution for the purpose of facilitating the hiring of the apprentice positions described in the job advertisement, and
(iii) receives from the trade union confirmation in writing that the trade union has provided as many apprentices as reasonably possible for work at the designated work site during the installation year, unless the trade union fails to respond within five business days of a request;
(b) the incentive claimant reviews and duly considers all applications received in response to the advertisement for apprenticeship opportunities that are offered directly by the incentive claimant and takes reasonable steps to ensure that other applications are reviewed and duly considered; and
(c) the incentive claimant attests in prescribed form and manner that it has complied with paragraphs (a) and (b).
End of inserted block(a) any member of the partnership may elect to pay the amount of the relevant tax or penalty liability on behalf of the partnership;
(b) if no election has been made under paragraph (a), the portion of the relevant tax or penalty liability that can reasonably be considered to be each member’s share thereof is payable by each member; and
(c) each member of the partnership is jointly and severally, or for civil law, solidarily, liable for any portion of the amount of the relevant tax or penalty liability that is not paid in accordance with paragraph (a) or allocated to and payable by a member under paragraph (b).
End of inserted block(2) Subsection (1) applies in respect of specified property prepared or installed on or after November 28, 2023.
at-risk amount has the meaning assigned by subsection 96(2.2). (fraction à risques)
clean economy allocation provision means
(a) subsection 127.44(11); or
(b) subsection 127.45(8). (disposition d’allocation pour l’économie propre)
clean economy expenditure means
(a) a qualified CCUS expenditure as determined under section 127.44; or
(b) the capital cost of clean technology property as determined under section 127.45. (dépense pour l’économie propre)
clean economy provision means
(a) this section;
(b) section 127.44 and Part XII.7;
(c) section 127.45; or
(d) section 127.46. (disposition pour l’économie propre)
clean economy tax credit means
(a) a CCUS tax credit (as defined in subsection 127.44(1)); or
(b) a clean technology investment tax credit (as defined in subsection 127.45(1)). (crédit d’impôt pour l’économie propre)
limited partner has the meaning assigned by subsection 96(2.4) if that subsection were read without reference to “if the member’s partnership interest is not an exempt interest (within the meaning assigned by subsection (2.5)) at that time and”. (commanditaire)
End of inserted block(2) Subsection (1) is deemed to have come into force on January 1, 2022, except that
(a) before March 28, 2023, the definitions clean economy allocation provision, clean economy expenditure, clean economy provision and clean economy tax credit in subsection 127.47(1) of the Act, as enacted by subsection (1), are to be read as follows:
clean economy allocation provision means subsection 127.44(11). (disposition d’allocation pour l’économie propre)
clean economy expenditure means a qualified CCUS expenditure as determined under section 127.44. (dépense pour l’économie propre)
clean economy provision means
(a) this section; or
(b) section 127.44 and Part XII.7. (disposition pour l’économie propre)
clean economy tax credit means a CCUS tax credit (as defined in subsection 127.44(1)). (crédit d’impôt pour l’économie propre)
(b) for the period that begins on March 28, 2023 and ends on November 27, 2023, the definition clean economy provision in subsection 127.47(1) of the Act, as enacted by subsection (1), is to be read as follows:
clean economy provision means
(a) this section;
(b) section 127.44 and Part XII.7; or
(c) section 127.45. (disposition pour l’économie propre)
(d.3) where, by reason of paragraph (d), a taxation year of the individual is not a calendar year,
(i) for the purposes of the application of subsection 146.6(1) and the definition excess FHSA amount in subsection 207.01(1) to each taxation year ending in the calendar year, references to “taxation year” are to be read as references to “calendar year”, and
(ii) for the purposes of the application of subsection 146.6(5) to each taxation year ending in the calendar year, the description of A in paragraph 146.6(5)(a) is to be read as follows:
(2) Subsection (1) is deemed to have come into force on April 1, 2023.
(b) shall, with all due dispatch, make the dividend refund after sending the notice of assessment if an application for it has been made in writing by the corporation within the period within which the Minister would be allowed
Insertion start (i) Insertion end under subsection 152(4) to assess tax payable under this Part by the corporation for the year if that subsection were read without reference to paragraph 152(4)(a), Insertion start or Insertion end
(ii) under subsection 152(4.31) to assess tax payable under Part IV by the corporation for the year if the Minister has assessed the corporation’s tax payable under that Part for the year under subsection 152(4.31).
End of inserted blockeligible portion of a corporation’s taxable capital gains or allowable capital losses for a taxation year is the total of all amounts each of which is the portion of a taxable capital gain or an allowable capital loss, as the case may be, of the corporation for the year from a disposition of a property that, except where the property was a designated property (within the meaning assigned by subsection 89(1)), cannot reasonably be regarded as having accrued while the property, or a property for which it was substituted, was property of a corporation other than a Canadian-controlled private corporation, Insertion start a substantive CCPC Insertion end , an investment corporation, a mortgage investment corporation or a mutual fund corporation. (fraction admissible)
(a) if the corporation was a Canadian-controlled private corporation throughout the year Insertion start or a substantive CCPC at any time in the year Insertion end , the least of
(4) Subsections (1) to (3) apply to taxation years that end on or after April 7, 2022.
(f) any security (in this paragraph and paragraph (g), as defined in subsection 122.1(1)) of the trust that is held by a trust governed by a deferred profit sharing plan, Insertion start FHSA Insertion end , RDSP, RESP, RRIF, RRSP or TFSA (referred to in this paragraph and paragraph (g) as the “registered plan trust”) is deemed not to be a qualified investment for the registered plan trust;
(g) if a registered plan trust governed by a TFSA Insertion start or FHSA Insertion end acquires at any time a security of the trust, Part XI.01 applies in respect of the security as though the acquisition is an advantage
(i) in relation to the TFSA Insertion start or the FHSA, as the case may be Insertion end , that is extended at that time to the controlling individual of the Insertion start registered plan trust Insertion end , and
(2) Subsection (1) is deemed to have come into force on August 4, 2023.
(a) it is
(i) a federal credit union, or
(ii) a provider of financial services that is organized on cooperative principles and incorporated by or under an Act of the legislature of a province,
End of inserted block(i) incorporated as credit unions or cooperative credit societies, Insertion start each Insertion end of which Insertion start is Insertion end described in paragraph (a), or all or substantially all of the members of which were credit unions, cooperatives or a combination Insertion start of those entities Insertion end ,
(b) a registered retirement savings plan, a registered retirement income fund, a TFSA, Insertion start a FHSA Insertion end or a registered education savings plan, the annuitant, holder or subscriber under which is a person described in paragraph (a). (membre)
(4) Subsections (1) and (2) are deemed to have come into force on January 1, 2016.
(5) Subsection (3) is deemed to have come into force on April 1, 2023.
(b) was an amount transferred directly from a Insertion start FHSA Insertion end , registered retirement savings plan, registered pension plan, registered retirement income fund or deferred profit sharing plan,
(2) Subsection (1) is deemed to have come into force on November 28, 2023.
(c) was an amount transferred directly from a Insertion start FHSA Insertion end , registered retirement savings plan, registered pension plan, registered retirement income fund or deferred profit sharing plan; or
(2) Subsection (1) is deemed to have come into force on November 28, 2023.
(c) an individual who is a qualifying family member in relation to the beneficiary if
(i) at or before that time, the beneficiary has attained the age of majority and, other than for the purposes of Insertion start paragraph (4)(b.1) Insertion end , is not a beneficiary under a disability savings plan,
(iv) a qualifying person ( Insertion start other than a person described in paragraph (c) of the definition qualifying person in subsection (1) Insertion end ) in relation to the beneficiary at the time the rights are acquired, or
(b.1) before 2027, as a consequence of the death of a qualifying family member who was the remaining holder of the plan immediately before death, the plan may allow one qualifying family member — in respect of which the conditions set out in paragraph (c) of the definition qualifying person in subsection (1) are met — to acquire rights as a successor of the holder of the plan;
End of inserted block(e) if the issuer enters into the plan with a qualifying family member who was a qualifying person in relation to the beneficiary at the time the plan (or another registered disability savings plan of the beneficiary) was entered into solely because of paragraph (c) of the definition qualifying person in subsection (1), Insertion start or who was a successor holder because of paragraph (4)(b.1) Insertion end ,
Insertion start (a) Insertion end entering into a plan, under which the individual is the beneficiary, with a qualifying family member who was a qualifying person in relation to the beneficiary at the time the plan (or another registered disability savings plan of the beneficiary) was entered into solely because of paragraph (c) of the definition qualifying person in subsection (1); or
(b) allowing a qualifying family member to acquire rights as a successor of the holder of the plan under paragraph (4)(b.1).
End of inserted blocksurvivor of a Insertion start holder Insertion end means another individual who is, immediately before the Insertion start holder’s Insertion end death, a spouse or common-law partner of the Insertion start holder Insertion end . (survivant)
bénéficiaire Relativement à un CELIAPP, s’entend Insertion start d’un Insertion end particulier (y compris Insertion start une Insertion end succession) ou Insertion start d’un Insertion end donataire reconnu qui a droit à une distribution du CELIAPP après le décès du titulaire du CELIAPP. (beneficiary)
(b) the amount determined by the formula
(i) if the taxpayer had not started their maximum participation period in the year, nil, or
(ii) in any other case, the lesser of
(A) the amount determined by the formula
(B) $8,000 plus the amount of the FHSA carryforward for the year, and
net RRSP-to-FHSA transfer amount of a holder at a particular time means the amount by which
(a) the total of all amounts transferred under paragraph 146(16)(a.2), at or before that time, to a FHSA of the holder
exceeds
(b) the total of all amounts designated by the holder under paragraph (a) of the definition designated amount in subsection 207.01(1) at or before that time. (montant net de transfert de REER à CELIAPP)
End of inserted block(ii) the taxpayer’s net RRSP-to-FHSA transfer amount as at the end of the year.
End of inserted block
(a) the survivor is a qualifying individual Insertion start at that time Insertion end and
(i) no contributions or transfers are made to the FHSA by the survivor after that time,
(ii) no qualifying withdrawals are made from the FHSA after that time, and
End of inserted blockInsertion start (iii) Insertion end the balance of the FHSA is transferred to a RRSP or RRIF of the survivor or distributed to the survivor in accordance with subsection (14), by the end of the year following the year of death; or
(b) the survivor is not a qualifying individual Insertion start at that time Insertion end , in which case the balance of the FHSA is to be transferred to a Insertion start FHSA Insertion end , RRSP or RRIF of the survivor, or distributed to the survivor in accordance with subsection (14), by the end of the year following the year of death.
(a) if a payment is made from the estate to a FHSA, RRSP or RRIF of the survivor, the payment is deemed to be a transfer from the FHSA to the extent that it is so designated jointly by the legal representative and the survivor in prescribed form filed with the Minister;
(a) Insertion start subsections Insertion end (3) Insertion start and (3.1) Insertion end do not apply Insertion start in respect of that Insertion end arrangement after the particular time;
(b) if the taxpayer who was the Insertion start last Insertion end holder under the arrangement is not deceased at the particular time, an amount equal to the fair market value of all the property of the arrangement, Insertion start determined at that time, is deemed for the purposes of subsection 146.6(6) to be received at that time by the taxpayer out of or under the FHSA Insertion end ;
(c) if the last holder is deceased at the particular time, the proportion of the fair market value of all the property of the arrangement that Insertion start a Insertion end beneficiary is entitled to, Insertion start determined at that time, is deemed for the purposes of subsection 146.6(14) to be distributed at that time from the FHSA to the beneficiary Insertion end ;
(d) if the arrangement governs a trust,
(i) the trust is deemed to have disposed, immediately before the particular time, of each property held by the trust for proceeds equal to the property’s fair market value immediately before the particular time,
(ii) the trust is deemed to have acquired, at the particular time, each such property at a cost equal to that fair market value,
(iii) the trust’s last taxation year that began before the particular time is deemed to have ended immediately before the particular time, and
(iv) a taxation year of the trust is deemed to begin at the particular time; and
(e) if the arrangement is a deposit or contract,
(i) the arrangement is deemed to have been disposed of immediately before the particular time for proceeds equal to its fair market value immediately before the particular time,
(ii) if the arrangement is an annuity contract, the contract is deemed to be a separate annuity contract issued and effected at the particular time otherwise than pursuant to or as a FHSA, and
(iii) each person who has an interest or, for civil law, a right in the separate annuity contract or deposit, as the case may be, at the particular time is deemed to acquire the interest at the particular time at a cost equal to its fair market value at the particular time.
End of inserted block(12) Subsections (1) to (11) are deemed to have come into force on April 1, 2023.
(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), Insertion start 127.44(2) Insertion end or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year.
(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), Insertion start 127.45(2) Insertion end or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year.
(viii) is made to give effect to the application of section 245 in respect of a transaction, unless the transaction was disclosed by the taxpayer to the Minister in accordance with section 237.3 or 237.4;
End of inserted block(b.8) a prescribed form that is required to be filed under subsection 18.2(18) is not filed as and when required, and the assessment, reassessment or additional assessment is
(i) made before the day that is
(A) in the case of a taxpayer described in paragraph (3.1)(a), four years after the day on which the prescribed form containing the prescribed information is filed, and
(B) in any other case, three years after the day on which the prescribed form containing the prescribed information is filed, and
(ii) in respect of the application of paragraph 12(1)(l.2), subsection 18.2(2), clause 95(2)(f.11)(ii)(D) or (E) or paragraph 111(1)(a.1);
End of inserted block(b.9) the assessment, reassessment or additional assessment
(i) is made before the day that is three years after the end of the normal reassessment period for the taxpayer in respect of the year and made in respect of a disposition, in the year, of shares of the capital stock of a corporation resident in Canada in respect of which the taxpayer filed an election under paragraph 84.1(2.31)(h), or
(ii) is made before the day that is 10 years after the end of the normal reassessment period for the taxpayer in respect of the year and made in respect of a disposition, in the year, of shares of the capital stock of a corporation resident in Canada in respect of which the taxpayer filed an election under paragraph 84.1(2.32)(i);
End of inserted block(b.10) a prescribed form that is required to be filed by the taxpayer, or a partnership of which the taxpayer is a member, under subsection 127.45(15) or (18) is not filed as and when required, and the assessment, reassessment or additional assessment is made in relation to transactions or events described in subsections 127.45(11) to (14) or (16) and (17) before the day that is
(i) in the case of a taxpayer described in paragraph (3.1)(a), four years after the day on which the form is filed, and
(ii) in any other case, three years after the day on which the form is filed;
End of inserted block(xi) the transaction referred to in subparagraph (4)(b)(viii), or
(xii) the transactions or events referred to in paragraph (4)(b.10);
End of inserted block(10) Subsection (1) is deemed to have come into force on January 1, 2022.
(11) Subsection (2) is deemed to have come into force on March 28, 2023.
(12) Subsections (3) and (9) apply to assessments or reassessments of taxpayers for taxation years that end on or after April 7, 2022.
(13) Subsection (4) applies to transactions that occur on or after January 1, 2024.
(14) Subsection (5) applies in respect of taxation years that begin on or after October 1, 2023.
(15) Subsection (6) comes into force or is deemed to have come into force on January 1, 2024.
(16) Subparagraph 152(4.01)(b)(xi) of the Act, as enacted by subsection (8), applies to transactions that occur on or after January 1, 2024.
(v) a payment out of or under a FHSA, if the amount is required by section 146.6 to be included in computing a taxpayer’s income
(2) Subsection (1) is deemed to have come into force on April 1, 2023.
(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 Insertion start 127.44(2) Insertion end to have been paid on account of the corporation’s tax payable under this Part for the year.
(e) 1/12 of the total of the amounts each of which is deemed by subsection 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1), 127.41(3), 127.44(2) or Insertion start 127.45(2) Insertion end to have been paid on account of the corporation’s tax payable under this Part for the year.
(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 Insertion start 127.44(2) Insertion end to have been paid on account of the corporation’s tax payable under this Part for the taxation year.
(c) 1/4 of the total of the amounts each of which is deemed by subsection 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1), 127.41(3), 127.44(2) or Insertion start 127.45(2) Insertion end to have been paid on account of the corporation’s tax payable under this Part for the taxation year.
(5) Subsections (1) and (3) are deemed to have come into force on January 1, 2022.
(6) Subsections (2) and (4) are deemed to have come into force on March 28, 2023.
(a) paragraph 84.1(2.31)(h) in respect of a disposition of shares of the capital stock of a corporation resident in Canada, they are jointly and severally, or solidarily, liable for the tax payable by the taxpayer under this Part to the extent that the tax payable by the taxpayer is greater than it would have been if the disposition had satisfied the conditions of subsection 84.1(2.31); or
(b) paragraph 84.1(2.32)(i) in respect of a disposition of shares of the capital stock of a corporation resident in Canada, they are jointly and severally, or solidarily, liable for the tax payable by the taxpayer under this Part to the extent that the tax payable by the taxpayer is greater than it would have been if the disposition had satisfied the conditions of subsection 84.1(2.32).
End of inserted block(2) Subsection (1) comes into force or is deemed to have come into force on January 1, 2024.
(2) Subsection (1) is deemed to have come into force on April 1, 2023.
(d.1) the amount, if any, by which
(i) the amount that would be deemed by subsection 127.44(2) to be paid for the year by the person if that amount were calculated by reference to the information provided in the return or form filed for the year under that subsection
exceeds
(ii) the amount that is deemed by subsection 127.44(2) to be paid for the year by the person,
End of inserted block(d.1) the amount, if any, by which
(i) the amount that would be deemed by subsection 127.44(2) Insertion start or 127.45(2), as the case may be Insertion end , 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) Insertion start or 127.45(2), as the case may be Insertion end , to be paid for the year by the person,
(3) Subsection (1) is deemed to have come into force on January 1, 2022.
(4) Subsection (2) is deemed to have come into force on March 28, 2023.
covered entity for a taxation year, means an entity that is a corporation, trust or partnership if at any time in the taxation year
(a) equity of the entity is listed on a designated stock exchange; and
(b) the entity is
(i) a corporation resident in Canada (other than a mutual fund corporation),
(ii) a trust that
(A) is a real estate investment trust (as defined in subsection 122.1(1)),
(B) is a SIFT trust, or
(C) would be a SIFT trust (other than a mutual fund trust that has one or more classes of units in continuous distribution) if
(I) each reference in paragraph (a) of the definition non-portfolio property in subsection 122.1(1) to “subject entity” were read as “corporation, partnership or trust” and paragraph (c) of that definition were read without reference to the words “in Canada”,
(II) paragraph (a) of the definition Canadian real, immovable or resource property in subsection 248(1) were read without reference to the words “situated in Canada”, and
(III) the definitions timber resource property in subsection 13(21) and Canadian resource property in subsection 66(15) were read without references to the words “in Canada”, or
(iii) a partnership that
(A) is a SIFT partnership, or
(B) would be a SIFT partnership if
(I) each reference in paragraph (a) of the definition non-portfolio property in subsection 122.1(1) to “subject entity” were read as “corporation, partnership or trust” and paragraph (c) of that definition were read without reference to the words “in Canada”,
(II) paragraph (a) of the definition Canadian real, immovable or resource property in subsection 248(1) were read without reference to the words “situated in Canada”, and
(III) the definitions timber resource property in subsection 13(21) and Canadian resource property in subsection 66(15) were read without references to the words “in Canada”. (entité visée)
equity of an entity, means, if the entity is
(a) a corporation, a share of the capital stock of the corporation;
(b) a trust, an income or capital interest in the trust; and
(c) a partnership, an interest as a member of the partnership. (capitaux propres)
qualifying issuance means any portion of an issuance that is made
(a) in exchange for
(i) cash,
(ii) a bond, debenture, note or other security (other than equity) of the covered entity that was issued solely for cash consideration, the terms of which confer on the holder the right to make the exchange, or
(iii) any combination of properties described in subparagraph (i) or (ii);
(b) to an employee of the covered entity (or an entity related to the covered entity) in the course of the employee’s employment; or
(c) to a person or partnership, with which the covered entity deals at arm’s length and is not affiliated, in exchange for property used in the covered entity’s active business. (émission admissible)
reorganization transaction means a redemption, acquisition or cancellation of equity by a covered entity that is made
(a) on an exchange of equity by a holder for consideration that includes equity (other than substantive debt) of
(i) the covered entity,
(ii) another entity that is related to the covered entity immediately before the exchange and is a covered entity immediately after the exchange, or
(iii) another covered entity that controls the covered entity (or an amalgamated successor entity of the covered entity) immediately after the exchange;
(b) on an amalgamation of the covered entity with one or more other predecessor corporations to which subsection 87(1) applies if a holder of that equity, immediately before the amalgamation, receives consideration that includes equity (other than substantive debt) of the new corporation (within the meaning of subsection 87(1)) for the disposition of their equity on the amalgamation;
(c) on a winding-up of the covered entity during which all or substantially all of the property owned by the covered entity is distributed to the equity holders of the covered entity;
(d) in the course of a reorganization to which paragraph 55(3)(a) or (b) applies;
(e) on a qualifying disposition (as defined in subsection 107.4(1));
(f) on a qualifying exchange (as defined in subsection 132.2(1));
(g) at the demand of a holder in accordance with the conditions referred to in paragraph 108(2)(a), included in the issued units of the trust, for an amount that does not exceed the fair market value of the equity at the time of the redemption, acquisition or cancellation; or
(h) pursuant to the exercise of a statutory right of dissent by a holder of the equity. (opération de réorganisation)
specified affiliate at any time, of a covered entity, means a corporation, trust or partnership (in this definition referred to as an “affiliate”) where, at that time,
(a) if the affiliate is a corporation, the covered entity
(i) controls the corporation, or
(ii) has a direct or indirect interest in the equity of the corporation having a fair market value equal to more than 50% of the fair market value of the total equity of the corporation;
(b) if the affiliate is a trust, the covered entity
(i) is a majority-interest beneficiary (as defined in subsection 251.1(3)) of the trust, or
(ii) has a direct or indirect interest in the equity of the trust having a fair market value equal to more than 50% of the fair market value of the total equity of the trust; and
(c) if the affiliate is a partnership, the covered entity
(i) is a majority-interest partner of the partnership, or
(ii) has a direct or indirect interest in the equity of the partnership having a fair market value equal to more than 50% of the fair market value of the total equity of the partnership. (entité affiliée déterminée)
substantive debt of a covered entity means equity that, in accordance with its terms
(a) is not convertible or exchangeable other than for
(i) equity that if issued would be substantive debt of the same covered entity,
(ii) a bond, debenture or note of the covered entity, the fair market value of which does not exceed the total of the amounts referred to in subparagraphs (d)(i) to (iv), or
(iii) equity that would be issued only after the occurrence of a trigger event pursuant to a non-viability contingent capital provision included in the terms of the equity to satisfy regulatory capital requirements applicable to the covered entity;
(b) is non-voting in respect of the election of the board of directors, the trustees or the general partner (as applicable) of the covered entity, except in the event of a failure or default under the terms or conditions of the equity;
(c) requires the amount of any dividend or other distribution payable to be calculated
(i) as a fixed amount, or
(ii) by reference to a percentage of an amount equal to the fair market value of the consideration for which the equity was issued if the percentage is
(A) fixed, or
(B) determined by reference to a market interest rate (including a Government of Canada Treasury Bill) plus a fixed amount, if any; and
(d) entitles any holder of the equity to receive, on the redemption, cancellation or acquisition of the equity by the covered entity or by a person or partnership with whom the covered entity does not deal at arm’s length or is affiliated, an amount that does not exceed the total of the following amounts:
(i) the fair market value of the consideration for which the equity was issued,
(ii) any unpaid distributions or dividends on the equity that are payable to the holder,
(iii) any premium that is payable to the holder solely due to the early redemption, cancellation or acquisition of the equity, and
(iv) any other amount in respect of an amount described in subparagraphs (i) to (iii) that is attributable to an increase in the value of a currency other than Canadian currency relative to Canadian currency. (dette substantielle)
End of inserted block
(a) redeemed, acquired or cancelled in a reorganization transaction, or
(b) acquired from a specified affiliate, if that equity was previously deemed by subsection (5) to have been acquired by the covered entity and was previously included in the description of A;
(a) if equity of a covered entity (other than substantive debt) is redeemed, acquired or cancelled in the taxation year pursuant to a reorganization transaction described in paragraph (a) or (b) of that definition and any portion of the consideration received by a holder for the equity is not equity consideration described in paragraph (a) or (b) of the definition reorganization transaction, the amount determined by the formula
(b) in any other case, nil; and
(a) issued in a qualifying issuance in the taxation year, or
(b) disposed of in the taxation year by a specified affiliate of the covered entity (except a disposition to the covered entity or another specified affiliate of the covered entity), if that equity was previously deemed by subsection (5) to have been acquired by the covered entity and was previously included in the description of A.
End of inserted block(a) a registered securities dealer that
(i) acquires the equity in the capacity of an agent in the ordinary course of business, and
(ii) disposes of the equity, other than to the covered entity or another specified affiliate of the covered entity, within a reasonable period of time that is consistent with the holding of equity in the ordinary course of business;
(b) a trust established for the benefit of employees and former employees of the covered entity (or of a specified affiliate of the covered entity) that satisfies the following conditions
(i) the trust is an employee benefit plan, and
(ii) the terms of the trust provide that any equity of the covered entity acquired or held by the trust cannot be transferred to, or otherwise be available for the benefit of, the covered entity or any specified affiliate of the covered entity;
(c) a trust governed by an employees profit sharing plan; or
(d) a trust governed by a deferred profit sharing plan.
End of inserted block(a) if the entity is a corporation, on or before the day it is required to file its return of income under Part I for the year, the corporation shall file with the Minister a return for the year under this Part in prescribed form;
(b) if the entity is a trust, within 90 days after the end of the taxation year, the trustee of the trust shall file with the Minister a return for the year under this Part in prescribed form; and
(c) if the entity is a partnership, a member of the partnership that has authority to act for the partnership shall file with the Minister a return for the year under this Part in prescribed form on or before the earlier of
(i) the day that is five months after the end of the taxation year, and
(ii) March 31 in the calendar year immediately following the calendar year in which the taxation year ended.
End of inserted block(a) if the entity is a corporation or trust, pay its tax payable under this Part for the year to the Receiver General on or before its balance-due day for the year; and
(b) if the entity is a partnership, pay its tax payable under this Part for the year to the Receiver General on or before the day which the partnership is required to file a return for the year under paragraph (1)(c).
End of inserted block(2) Subsection (1) applies to transactions that occur after 2023.
(iii) an amount transferred to the plan on behalf of the individual in accordance with any of subsections 146(16), Insertion start 146.6(7) Insertion end , 147(19), 147.3(1) and (4) to (7) and 147.5(21) or in circumstances to which subsection 146(21) applies,
(2) Subsection (1) is deemed to have come into force on April 1, 2023.
excess FHSA amount of an individual at a particular time in a taxation year means
Insertion start (a) Insertion end the amount determined by the formula
(i) nil, if the individual had not started their maximum participation period in the preceding taxation year, and
End of inserted blockInsertion start (ii) Insertion end the Insertion start individual’s Insertion end excess FHSA amount determined at the end of the immediately preceding taxation year, Insertion start in any other case Insertion end ;
(i) $8,000 plus an amount that would have been the individual’s FHSA carryforward for the taxation year if each amount that was included in that individual’s income under subsection 146.6(6) and could have been, immediately prior to the time it was received, a designated amount, had been designated by the individual as a designated amount, and
End of inserted blockInsertion start (ii) Insertion end the amount determined by the formula
(A) no amounts were transferred under paragraph 146(16)(a.2) to a FHSA of the individual, and
(B) notwithstanding clause (A), an amount had been contributed by the individual to a FHSA in each preceding taxation year that is the amount by which the individual’s net RRSP-to-FHSA transfer amount at the end of that year exceeds the individual’s net RRSP-to-FHSA transfer amount at the start of that year;
End of inserted block
(b) where the Minister determines that the formula in paragraph (a) does not yield an appropriate result having regard to the circumstances of the individual, a lower amount that, in the Minister’s opinion, is appropriate in the circumstances. (excédent de CELIAPP)
End of inserted block(a) a transfer in accordance with subparagraph 146.6(7)(b)(ii), to the extent that it does not exceed the total of all amounts transferred under paragraph 146(16)(a.2) to a FHSA under which the individual is the holder on or before the date of the designation less the total of all amounts previously designated under this paragraph; or
(iv) an amount transferred in accordance with paragraph 146(16)(a.2) or to which subsection 146.6(7) applies;
End of inserted block(i) both registered plans are RRIFs or RRSPs,
(v) both registered plans are FHSAs;
End of inserted block(6) Subsections (1) to (3) are deemed to have come into force on April 1, 2023.
(7) Subsections (4) and (5) are deemed to have come into force on August 4, 2023.
(a) 50% of all contributions ( Insertion start other than an excluded contribution made on or after March 28, 2023 Insertion end ) made under the arrangement while it was a retirement compensation arrangement and before the end of the year, and
excluded contribution means an amount paid or payable under a specified arrangement to obtain or renew a letter of credit or surety bond issued by a financial institution for the purposes of securing future retirement benefit payments out of or under the arrangement; (cotisation exclue)
specified arrangement means a retirement compensation arrangement of which the primary purpose is to provide annual or more frequent periodic retirement benefit payments that are paid
(a) as supplemental benefits provided out of or under
(i) a registered pension plan,
(ii) a registered retirement savings plan,
(iii) a deferred profit sharing plan,
(iv) a pooled registered pension plan, or
(v) any combination of plans described in subparagraphs (i) to (iv), or
(b) under an arrangement that would, in the absence of subsection 147.1(8) and section 8504 of the Income Tax Regulations, substantially comply with the prescribed conditions for registration for a registered pension plan under section 8501 of those Regulations; (convention déterminée)
End of inserted block(3) Subsections (1) and (2) are deemed to have come into force on March 28, 2023.
eligible employer means an employer that paid an amount, or that has a predecessor employer (as defined in subsection 8500(1) of the Income Tax Regulations) that paid an amount, before March 28, 2023, under a specified arrangement that is an excluded contribution. (employeur admissible)
specified refundable tax of a specified arrangement at the end of a taxation year means the amount, if any, determined by the formula
(a) an eligible employer, or the custodian of the arrangement, paid a refundable tax under this Part with respect to an excluded contribution made under the arrangement before March 28, 2023;
(b) the eligible employer files an election with the Minister in prescribed form and manner; and
(c) the election includes an elected amount that does not exceed the total amount of refundable tax paid with respect to excluded contributions made under the arrangement before March 28, 2023.
End of inserted block(a) 50% of all retirement benefits paid in the taxation year directly by the eligible employer for the benefit of beneficiaries whose retirement benefits were secured under the specified arrangement with a letter of credit or surety bond issued by a financial institution, and
(b) the specified refundable tax of the specified arrangement at the end of the taxation year.
End of inserted block(c) the total of
(i) 50% of all amounts paid as distributions to one or more persons (including amounts that are required by paragraph 12(1)(n.3) to be included in computing the recipient’s income) under the arrangement while it was a retirement compensation arrangement and before the end of the year, other than a distribution paid where it is established, by subsequent events or otherwise, that the distribution was paid as part of a series of payments and refunds of contributions under the arrangement, and
(ii) all amounts determined under subsection 207.71(3) in respect of the specified arrangement for the year and a preceding year;
End of inserted block(2) Subsection (1) applies to the 2024 and subsequent taxation years.
actual eligible use percentage, in respect of a CCUS project, for a period means the amount, expressed as a percentage, determined by the formula
exempt corporation at any time, means a corporation that does not have an ownership interest, whether directly or indirectly, in a qualified CCUS project in respect of which $20 million or more of qualified CCUS expenditures are expected to be incurred (based on the most recent project evaluation issued by the Minister of Natural Resources for the project). (société exonérée)
first project period, in respect of a CCUS project, means the period that begins on the first day of commercial operations — or, if the project has not yet commenced operations, the day on which, according to the most recent project plan, operations are expected to begin — and ends
(a) if that day is before October of a calendar year, on December 31 of the calendar year that includes the fourth anniversary of that day; or
(b) if that day is after September of a calendar year, on December 31 of the calendar year that includes the fifth anniversary of that day. (première période du projet)
first recovery taxation year, in respect of a project period of a CCUS project, means the taxation year that includes the last day of the first project period. (première année d’imposition de recouvrement)
fourth project period, in respect of a CCUS project, means the five calendar years following the end of the third project period. (quatrième période du projet)
fourth recovery taxation year, in respect of a project period of a CCUS project, means the taxation year that includes the last day of the fourth project period. (quatrième année d’imposition de recouvrement)
knowledge sharing CCUS project means a qualified CCUS project that
(a) is expected to incur qualified CCUS expenditures of $250 million or more based on the most recent project evaluation issued by the Minister of Natural Resources for the project; or
(b) has incurred $250 million or more of qualified CCUS expenditures before the first day of commercial operations of the project. (projet de CUSC requérant l’échange de connaissances)
knowledge sharing report, in respect of a CCUS project, means
(a) an annual operations knowledge sharing report containing the information described by the Minister of Natural Resources in the CCUS-ITC Technical Guidance Document as published by the Minister of Natural Resources and amended from time to time, in the form annexed to the CCUS-ITC Technical Guidance Document; and
(b) the construction and completion knowledge sharing report containing the information described in the CCUS-ITC Technical Guidance Document referred to in paragraph (a). (rapport sur l’échange de connaissances)
knowledge sharing taxpayer means a taxpayer that claimed a CCUS tax credit for a taxation year ending before the project start-up date of a knowledge sharing CCUS project. (contribuable échangeant des connaissances)
project period, in respect of a CCUS project, means any of the first project period, the second project period, the third project period and the fourth project period. (période de projet)
project start-up date means the day that is 120 days before the first day of commercial operations. (jour du début du projet)
recovery taxation year, in respect of a CCUS project, means any of the first recovery taxation year, the second recovery taxation year, the third recovery taxation year and the fourth recovery taxation year. (année d’imposition de recouvrement)
relevant project period means
(a) in respect of the first recovery taxation year, the first project period;
(b) in respect of the second recovery taxation year, the second project period;
(c) in respect of the third recovery taxation year, the third project period; and
(d) in respect of the fourth recovery taxation year, the fourth project period. (période de projet pertinente)
reporting-due day means
(a) in respect of an annual climate risk disclosure report, the day that is nine months after the day on which the reporting taxation year for the report ends;
(b) in respect of an annual operations knowledge sharing report,
(i) if the report is the first such report,
(A) where the project start-up date is before October 1 in a calendar year, June 30 of the following calendar year, and
(B) where the project start-up date is after September 30 in a calendar year, June 30 of the second calendar year after the calendar year which includes the the project start-up date, and
(ii) if the report is not the first report, each June 30 of the first four calendar years immediately following the calendar year which includes the June 30 referred to in subparagraph (i); and
(c) in respect of the construction and completion knowledge sharing report, the last day of the sixth month beginning after the project start-up date. (date d’échéance du rapport)
reporting period means
(a) in respect of the construction and completion knowledge sharing report, the period that begins on the first day an expenditure for a CCUS project is incurred and ends on the project start-up date of the knowledge sharing CCUS project; and
(b) in respect of an annual operations knowledge sharing report, each period that begins on the project start-up date and ends on the last day of the calendar year ending immediately before the reporting-due day for the annual operations knowledge sharing report. (période de déclaration)
reporting taxation year means
(a) the first taxation year of a taxpayer in which a CCUS tax credit was deducted, in respect of a CCUS project of the taxpayer; and
(b) each taxation year that
(i) begins after a taxation year referred to in paragraph (a), and
(ii) ends before the twenty-first calendar year after the end of the taxation year which includes the first day of commercial operations of the CCUS project. (année d’imposition de la déclaration)
second project period, in respect of a CCUS project, means the five calendar years following the end of the first project period. (deuxième période du projet)
second recovery taxation year, in respect of a project period of a CCUS project, means the taxation year that includes the last day of the second project period. (deuxième année d’imposition de recouvrement)
third project period, in respect of a CCUS project, means the five calendar years following the end of the second project period. (troisième période du projet)
third recovery taxation year, in respect of a project period of a CCUS project, means the taxation year that includes the last day of the third project period. (troisième année d’imposition de recouvrement)
End of inserted block(a) the actual eligible use percentage of the project for the relevant project period to which the period relates, and for each subsequent project period, is deemed to be nil;
(b) the relevant project period for the particular recovery taxation year is deemed to include each subsequent project period; and
(c) those subsections do not apply to a subsequent recovery taxation year in respect of the project.
End of inserted block
(a) the actual eligible use percentage for a qualified CCUS project during a project period is significantly reduced due to extraordinary circumstances, for bona fide reasons outside the control of the taxpayer and each person or partnership that does not deal at arm’s length with the taxpayer;
(b) the taxpayer requests in writing, on or before the taxpayer’s filing-due date for the year, that the Minister consider the potential application of this subsection and subsection (7); and
(c) the Minister is satisfied that the taxpayer has taken all reasonable steps to attempt to rectify the extraordinary circumstances, and that it is appropriate, having regard to all the circumstances, to apply this subsection and subsection (7).
End of inserted block(a) if the qualified CCUS project’s operations are affected by extraordinary circumstances for all or substantially all of the project period, then no amount is payable by the taxpayer for the year under subsections (3) to (5) in respect of the project; and
(b) in any other case, the portion of the project period during which the project’s operations are affected by the extraordinary circumstances shall be disregarded for the purpose of calculating the actual eligible use percentage for the project period.
End of inserted block(a) if the project is inoperative for all or substantially all of the period, then no amount is payable by the taxpayer for the year under subsections (3) to (5) in respect of the project; and
(b) in any other case, the portion of the project period during which the project is inoperative shall be disregarded for the purpose of calculating the actual eligible use percentage for the project period.
End of inserted block(a) if the time is before the total CCUS project review period of the CCUS project to which the expenditure relates, the expenditure is deemed not to be a qualified CCUS expenditure in respect of the CCUS project for the purpose of determining the taxpayer’s cumulative CCUS development tax credit for the particular year and any subsequent taxation years; and
(b) if the time is during the total CCUS project review period of the CCUS project to which the expenditure relates, there shall be added to the tax otherwise payable by the taxpayer under this Part for the year the amount determined by the formula
(i) if the property is disposed of to a person who deals at arm’s length with the taxpayer, the proceeds of disposition of the property, or
(ii) if the property is disposed of to a person who does not deal at arm’s length with the taxpayer, or is exported from Canada but not disposed of, the fair market value of the property at that time,
(a) if the property is disposed of to a person who deals at arm’s length with the taxpayer, the proceeds of disposition of the property, or
(b) if the property is disposed of to a person who does not deal at arm’s length with the taxpayer, or is exported from Canada, the fair market value of the property;
(a) the purchaser is deemed to have made the qualifying expenditures of the vendor at the times incurred by the vendor;
(b) the provisions of this Act that applied to the vendor in respect of the property that are relevant to the application of the Act in respect of the property after that time are deemed to have applied to the purchaser and, for greater certainty, the purchaser is deemed to have claimed the tax credits determined under section 127.44 that could have been claimed by the vendor, before that time, in respect of the CCUS project;
(c) any project plans that were prepared or filed by the vendor in respect of the CCUS project before that time are deemed to have been filed by the purchaser;
(d) the purchaser is or will be liable for amounts in respect of the property for which the vendor would be liable under this Part in respect of actions, transactions or events that occur after that time as if the vendor had undertaken them or otherwise participated in them; and
(e) subsections (9) and (10) do not apply to the vendor in respect of the disposition of property to the purchaser.
End of inserted block(a) of a member of the partnership under subsection (13); or
(b) of a taxable Canadian corporation because of subsection (14) and paid by the corporation by its filing-due date for the year.
End of inserted block(a) if the taxpayer is a knowledge sharing taxpayer, submit in respect of each reporting period a knowledge sharing report to the Minister of Natural Resources on or before the reporting-due day for the report; and
(b) if the taxpayer is a corporation that is not an exempt corporation, on or before the reporting-due day for each reporting taxation year, make available to the public, in prescribed manner, a climate risk disclosure report for the year that
(i) describes the climate-related risks and opportunities for the corporation based on the following thematic areas:
(A) the corporation’s governance in respect of climate-related risks and opportunities,
(B) the actual and potential impacts of climate-related risks and opportunities on the corporation’s businesses, strategy and financial planning, if such information is material,
(C) the processes used by the corporation to identify, assess and manage climate related risks, and
(D) the metrics and targets used by the corporation to assess and manage relevant climate-related risks and opportunities, and
(ii) explains how the corporation’s governance, strategies, policies and practices contribute to achieving Canada’s
(A) commitments under the Paris Agreement made on December 12, 2015, and
(B) goal of net-zero emissions by 2050.
End of inserted block(a) 4% of the total of all amounts, each of which is the amount of a CCUS tax credit of the corporation in respect of each taxation year that ended before the reporting-due day for the reporting taxation year, and
(b) $1 million.
End of inserted block(a) the actual amount of carbon captured, during the calendar year ending in the taxation year, for storage or use in eligible use; and
(b) the total quantity of captured carbon during that calendar year that supported storage or use in both eligible use and ineligible use.
End of inserted block(a) the period referred to in paragraph 230(4)(b), and
(b) 26 years after the end of the taxpayer’s last taxation year for which an amount was deemed to have been paid under subsection 127.44(2) by reason of its paragraph (a).
End of inserted block(2) Subsection (1) is deemed to have come into force on January 1, 2022.
(3) Subsections (1) and (2) apply in respect of payments arising on or after July 1, 2022.
(e) the definitions eligible group entity, excluded entity and fixed interest commercial trust in subsection 18.2(1) and section 18.21 do not apply in computing the non-resident person’s income.
End of inserted block(2) Subsection (1) applies in respect of taxation years of a taxpayer that begin on or after October 1, 2023.
(3) Subsection (1) is deemed to have come into force on January 1, 2022.
(4) Subsection (2) is deemed to have come into force on March 28, 2023.
(b.1) in the case of an amount payable under any of subsections 211.92(2) to (5), in respect of the day on which the notice of assessment is sent,
(i) for one-fifth of the amount, one year after that day,
(ii) for two-fifths of the amount, two years after that day,
(iii) for three-fifths of the amount, three years after that day,
(iv) for four-fifths of the amount, four years after that day, and
(v) for the entire amount, five years after that day; and
End of inserted block(a) subject to paragraph (b), the Minister shall, on written application made no later than two years after the day on which the assessment is made in respect of the application of paragraph 20(1)(yy), pay to the person the amount determined by the formula
(i) the total of all amounts, if any, paid to the Receiver General on or prior to the day the written application was made on behalf of the person and in respect of the liability of the person to pay an amount under Part XIII in respect of the payment or the portion of it, as the case may be, and
(ii) the amount that would be payable to the Receiver General under Part XIII if an amount equal to the amount deductible under paragraph 20(1)(yy) were paid by the corporation to the person as a dividend described in paragraph 212(2)(a) at the end of the taxation year in which the amount is deductible under paragraph 20(1)(yy), and
(b) if the person is or is about to become liable to make a payment to His Majesty in right of Canada, the Minister may apply the amount otherwise payable under paragraph (a) to that liability and notify the person of that action.
End of inserted block(3) Subsections (1) and (2) apply in respect of payments arising on or after July 1, 2022.
(a) for the purpose of applying subparagraphs 152(4)(b)(viii) and (4.01)(b)(xi) to the transaction referred to in subsection (12.1), the reference to “3 years” in paragraph 152(4)(b) is to be read as “1 year”; and
(b) for the purpose of applying subsection 245(5.1) to the transaction, the information return is deemed to have been filed within the time required by this section.
End of inserted block(2) Subsection (1) applies to transactions that occur on or after January 1, 2024.
(vi.1) to an official of the Department of Natural Resources solely for the Insertion start purposes Insertion end of determining whether
Insertion start (A) Insertion end property is prescribed energy conservation property ( Insertion start as defined in Part LXXXII of the Income Tax Regulations Insertion end ) or whether an outlay or expense is a Canadian renewable and conservation expense ( Insertion start as defined in section 66.1 Insertion end ),
(B) a process is a CCUS process (as defined in section 127.44), whether property is dual-use equipment (as defined in section 127.44), whether a project is a qualified CCUS project (as defined in section 127.44) or whether a property is described in Class 57 or 58 of Schedule II to the Income Tax Regulations,
(C) a property is a clean technology property (as defined in section 127.45), and
(D) a cost is a ZETM cost of capital or a ZETM cost of labour (as defined in section 125.2) and activities are qualified zero-emission technology manufacturing activities (as defined in Part LII of the Income Tax Regulations),
End of inserted block(A) the Department of Employment and Social Development, the Department of Health or Insertion start the Department of Public Works and Government Services Insertion end , solely for the purpose of the administration or enforcement of the Canadian Dental Care Plan established under the authority of the Department of Health Act in respect of dental service for individuals, or
(a) applies to deny the tax benefit of avoidance transactions that result directly or indirectly either in a misuse of provisions of the Act (or any of the enactments listed in subparagraphs (4)(a)(ii) to (v)) or an abuse having regard to those provisions read as a whole, while not preventing taxpayers from obtaining tax benefits contemplated by Parliament; and
(b) strikes a balance between
(i) the Government of Canada’s responsibility to protect the tax base and the fairness of the tax system, and
(ii) taxpayers’ need for certainty in planning their affairs.
End of inserted block(a) but for this section, would result, directly or indirectly, in a tax benefit; or
(b) is part of a series of transactions, which series, but for this section, would result, directly or indirectly, in a tax benefit.
(a) all or substantially all of the opportunity for gain or profit and risk of loss of the taxpayer — taken together with those of all non-arm’s length taxpayers (other than those non-arm’s length taxpayers who can reasonably be considered, having regard to the circumstances viewed as a whole, to have economic interests that are largely adverse from those of the taxpayer) — remains unchanged, including because of
(i) a circular flow of funds,
(ii) offsetting financial positions,
(iii) the timing between steps in a series, or
(iv) the use of an accommodation party;
(b) it is reasonable to conclude that, at the time the transaction or series was entered into, the expected value of the tax benefit exceeded the expected non-tax economic return (which excludes both the tax benefit and any tax advantages connected to another jurisdiction); and
(c) it is reasonable to conclude that the entire, or almost entire, purpose for undertaking or arranging the transaction or series was to obtain the tax benefit.
End of inserted block
(a) published administrative guidance or statements made by the Minister or another relevant governmental authority; or
(b) one or more court decisions.
End of inserted block(5) Subsections (2) and (3) apply to transactions that occur on or after January 1, 2024.
(6) Subsection (4) applies to transactions that occur on or after the later of January 1, 2024 and the day on which this Act receives royal assent.
(vi) if the transferor is an amateur athlete trust, a cemetery care trust, an employee trust, a trust deemed by subsection 143(1) to exist in respect of a congregation that is a constituent part of a religious organization, a related segregated fund trust (in this paragraph having the meaning assigned by section 138.1), a trust described in paragraph 149(1)(o.4) or a trust governed by an eligible funeral arrangement, an employees profit sharing plan, Insertion start a FHSA Insertion end , a registered disability savings plan, a registered education savings plan, a registered supplementary unemployment benefit plan or a TFSA, the transferee is the same type of trust, and
(b.1) an employee ownership trust,
End of inserted blockemployee trust means an arrangement (other than Insertion start an employee ownership trust Insertion end , an employees profit sharing plan, a deferred profit sharing plan or a plan referred to in subsection 147(15) as a “revoked plan”) established after 1979
(ii) the principal mineral extracted is ammonite gemstone, calcium chloride, diamond, gypsum, halite, kaolin, Insertion start lithium Insertion end or sylvite, or
substantive CCPC means a private corporation (other than a Canadian-controlled private corporation) that
(a) is controlled, directly or indirectly in any manner whatever, by one or more individuals resident in Canada, or
(b) would, if each share of the capital stock of a corporation that is owned by a Canadian resident individual were owned by a particular individual, be controlled by the particular individual; (SPCC en substance)
End of inserted blockabsorbed capacity has the same meaning as in subsection 18.2(1); (capacité absorbée)
cumulative unused excess capacity has the same meaning as in subsection 18.2(1); (capacité excédentaire cumulative inutilisée)
excess capacity has the same meaning as in subsection 18.2(1); (capacité excédentaire)
interest and financing expenses has the same meaning as in subsection 18.2(1), except for the purposes of the definition economic profit in subsection 126(7); (dépenses d’intérêts et de financement)
interest and financing revenues has the same meaning as in subsection 18.2(1); (revenus d’intérêts et de financement)
restricted interest and financing expense has the same meaning as in subsection 111(8); (dépense d’intérêts et de financement restreinte)
transferred capacity has the same meaning as in subsection 18.2(1); (capacité transférée)
End of inserted blockdistribution equipment has the same meaning as in subsection 1104(13) of the Income Tax Regulations; (matériel de distribution)
fossil fuel has the same meaning as in subsection 1104(13) of the Income Tax Regulations; (combustible fossile)
transmission equipment has the same meaning as in subsection 1104(13) of the Income Tax Regulations; (matériel de transmission)
End of inserted blockemployee ownership trust means an irrevocable trust that, at all relevant times, satisfies the following conditions:
(a) the trust is resident in Canada (determined without reference to subsection 94(3)),
(b) the trust is exclusively for the benefit of all individuals each of whom
(i) is either
(A) an employee of one or more qualifying businesses controlled by the trust (other than an employee who has not completed an applicable probationary period, which may not exceed 12 months), or
(B) if the trust permits, an individual (or the estate of an individual) who is a former employee (other than a former employee who did not complete an applicable probationary period, of up to 12 months, during their employment) of one or more qualifying businesses controlled by the trust and who was an employee of the qualifying business while the trust controlled the qualifying business,
(ii) does not own, directly or indirectly (other than through an interest in the trust), shares of a class of the capital stock of a qualifying business controlled by the trust, the value of which is equal to or greater than 10% of the fair market value of the class,
(iii) does not own, directly or indirectly, together with any person or partnership that is related to or affiliated with the individual, shares of a class of the capital stock of a qualifying business controlled by the trust, the value of which is equal to or greater than 50% of the fair market value of the class, and
(iv) immediately before the time of a qualifying business transfer to the trust, did not own, directly or indirectly, together with any person or partnership that is related to or affiliated with the individual, shares of the capital stock or indebtedness of the qualifying business, the value of which is equal to or greater than 50% of the fair market value of the shares of the capital stock and indebtedness of the qualifying business,
(c) the capital and income interests of each beneficiary described in clause (b)(i)(A) or (B) are determined in the same manner as the other beneficiaries described in those clauses, as applicable, based solely on any combination of the following criteria:
(i) the total hours of employment service provided by the beneficiary to the qualifying business in respect of a particular time period,
(ii) the total salary, wages and other remuneration paid or payable to the beneficiary by the qualifying business in respect of a particular time period, not exceeding, for any calendar year in the particular time period, twice the first dollar amount referred to in paragraph 117(2)(e), as adjusted by section 117.1, for the year (prorated based upon the number of days of the calendar year in the particular time period), and
(iii) the total period of employment service the beneficiary has provided to the qualifying business since a particular time,
(d) the trustees are prohibited from exercising their discretion to act in the interest of one beneficiary (or group of beneficiaries) to the prejudice of another beneficiary (or group of beneficiaries),
(e) each trustee of the trust is either a corporation resident in Canada that is licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as a trustee or an individual (other than a trust),
(f) each trustee has an equal vote in the conduct of the affairs of the trust,
(g) at least one-third of the trustees must be beneficiaries described in clause (b)(i)(A),
(h) if any trustee is appointed (other than by an election within the last five years by the beneficiaries described in clause (b)(i)(A)), at least 60% of all trustees must be persons that deal at arm’s length with each person who has, directly or indirectly in any manner whatever, as part of a transaction or event or series of transactions or events, sold shares of a qualifying business to the trust (or to any person or partnership affiliated with the trust) prior to or in connection with the trust acquiring control of the qualifying business,
(i) more than 50% of the beneficiaries of the trust described in clause (b)(i)(A) must approve each of the following transactions or events prior to their occurrence:
(i) any transaction or event or series of transactions or events that causes at least 25% of the beneficiaries to lose their status as beneficiaries under clause (b)(i)(A) (unless the change in status is in respect of a termination of employment for cause), and
(ii) a winding-up, amalgamation or merger of a qualifying business (other than in the course of a transaction or event or a series of transactions or events that involves only persons or partnerships that are affiliated with the qualifying business), and
(j) all or substantially all the fair market value of the property of the trust is attributable to shares of the capital stock of one or more qualifying businesses that the trust controls; (fiducie collective des employés)
qualifying business, at a particular time, means a corporation controlled by a trust
(a) that is a Canadian-controlled private corporation,
(b) not more than 40% of the directors of which consist of individuals that, immediately before the time that the trust acquired control of the corporation, owned, directly or indirectly, together with any person or partnership that is related to or affiliated with the director, 50% or more of the fair market value of the shares of the capital stock or indebtedness of the corporation, and
(c) that deals at arm’s length and is not affiliated with any person or partnership that owned, directly or indirectly, 50% or more of the fair market value of the shares of the capital stock or indebtedness of the corporation immediately before the time the trust acquired control of the corporation; (entreprise admissible)
qualifying business transfer means a disposition by a taxpayer of shares of the capital stock of a corporation (in this definition referred to as the “subject corporation”) to a trust, or to a Canadian-controlled private corporation (in this definition referred to as the “purchaser corporation”) that is controlled and wholly-owned by a trust, if
(a) immediately before the disposition, all or substantially all the fair market value of the assets of the subject corporation is attributable to assets (other than an interest in a partnership) that are used principally in an active business (referred to in this definition as the “business”) carried on by the subject corporation or a corporation that is controlled and wholly-owned by the subject corporation,
(b) at the time of the disposition,
(i) the taxpayer deals at arm’s length with the trust and any purchaser corporation,
(ii) the trust acquires control of the subject corporation, and
(iii) the trust is an employee ownership trust, the beneficiaries of which are employed in the business, and
(c) at all times after the disposition,
(i) the taxpayer deals at arm’s length with the subject corporation, the trust and any purchaser corporation, and
(ii) the taxpayer does not retain any right or influence that, if exercised, would allow the taxpayer (whether alone or together with any person or partnership that is related to or affiliated with the taxpayer) to control, directly or indirectly in any manner whatever, the subject corporation, the trust, or any purchaser corporation; (transfert admissible d’entreprise)
End of inserted block(d) presented as an arrangement in respect of which the corporation is to take action for the arrangement to become Insertion start a FHSA Insertion end , a registered disability savings plan, a registered education savings plan, a registered retirement income fund, a registered retirement savings plan or a TFSA.
(a) becomes a Canadian-controlled private corporation;
(b) is subject to a loss restriction event; or
(c) ceases to be resident in Canada.
End of inserted block(11) Subsections (1) and (9) are deemed to have come into force on April 1, 2023.
(12) Subsections (2), (3) and (8) come into force or are deemed to have come into force on January 1, 2024.
(13) Subsection (4) is deemed to have come into force on March 28, 2023 and, for greater certainty, subsection (4) does not apply in respect of expenses incurred before March 28, 2023.
(14) Subsections (5) and (10) apply to
(a) taxation years of a corporation that begin on or after April 7, 2022, if
(i) the corporation’s first taxation year that ends on or after April 7, 2022 ends due to a loss restriction event caused by a sale of all or substantially all of the shares of a corporation to a purchaser before 2023,
(ii) the purchaser deals at arm’s length (determined without reference to a right referred to in paragraph 251(5)(b) of the Act) with the corporation immediately prior to the loss restriction event, and
(iii) the sale occurs pursuant to a written purchase and sale agreement entered into before April 7, 2022; and
(b) taxation years that end on or after April 7, 2022, in any other case.
(15) Subsection (6) applies in respect of taxation years of a taxpayer that begin on or after October 1, 2023. However, subsection (6) also applies in respect of a taxation year that begins before, and ends after October 1, 2023 if
(a) any of the taxpayer’s three immediately preceding taxation years was, because of a transaction or event or a series of transactions or events, shorter than it would have been in the absence of that transaction, event or series; and
(b) it can reasonably be considered that one of the purposes of the transaction, event or series was to defer the application of paragraph 12(1)(l.2) of the Act, as enacted by subsection 2(1), or the application of section 18.2 or 18.21 of the Act, as enacted by subsection 7(1), to the taxpayer.
(16) Subsection (7) is deemed to have come into force on March 28, 2023.
(j) if an employee ownership trust controls a qualifying business, control of the qualifying business is deemed not to be acquired solely because of a change in the trustee having ownership or control of the trust’s property if the trust remains an employee ownership trust immediately after the change of trustee.
End of inserted block(2) Subsection (1) comes into force or is deemed to have come into force on January 1, 2024.
specified provision means any of subsections 10(10) and 13(24), paragraph 37(1)(h), subsections 66(11.4) and (11.5), 66.7(10) and (11), 69(11) and 111(4), Insertion start (5), (5.01), (5.1) and Insertion end (5.3), paragraphs (j) and (k) of the definition investment tax credit in subsection 127(9), subsections 181.1(7) and 190.1(6) and any provision of similar effect. (dispositions déterminées)
(2) Subsection (1) applies in respect of taxation years of a taxpayer that begin on or after October 1, 2023. However, subsection (1) also applies in respect of a taxation year that begins before, and ends after, October 1, 2023 if
(a) any of the taxpayer’s three immediately preceding taxation years was, because of a transaction or event or a series of transactions or events, shorter than it would have been in the absence of that transaction, event or series; and
(b) it can reasonably be considered that one of the purposes of the transaction, event or series was to defer the application of paragraph 12(1)(l.2) of the Act, as enacted by subsection 2(1), or the application of section 18.2 or 18.21 of the Act, as enacted by subsection 7(1), to the taxpayer.
(2) Subsection (1) applies in respect of dividends received after 2023.
R.S., c. E-15
(A) the Department of Employment and Social Development, the Department of Health or Insertion start the Department of Public Works and Government Services Insertion end , solely for the purpose of the administration or enforcement of the Canadian Dental Care Plan established under the authority of the Department of Health Act in respect of dental service for individuals, or
2002, c. 22
(A) the Department of Employment and Social Development, the Department of Health or Insertion start the Department of Public Works and Government Services Insertion end , solely for the purpose of the administration or enforcement of the Canadian Dental Care Plan established under the authority of the Department of Health Act in respect of dental service for individuals, or
C.R.C., c. 945
(iv) a contribution that is an excluded contribution (as defined in subsection 207.5(1) of the Act); or
End of inserted block(2) Subsection (1) is deemed to have come into force on March 28, 2023.
(h) governed by a FHSA.
End of inserted block(2) Subsection (1) is deemed to have come into force on April 1, 2023.
First Home Savings Account (FHSA) Annual Information Return
|
Start of inserted block First Home Savings Account Statement
End of inserted block |
Start of inserted block T4FHSA
End of inserted block |
(3) Subsections (1) and (2) are deemed to have come into force on April 1, 2023.
First Home Savings Account (FHSA) Annual Information Return
|
Start of inserted block First Home Savings Account Statement
End of inserted block |
Start of inserted block T4FHSA
End of inserted block |
(3) Subsections (1) and (2) are deemed to have come into force on April 1, 2023.
(2) Subsection (1) is deemed to have come into force on April 1, 2023.
(a) an annuity contract that is, or is issued pursuant to, an arrangement described in any of paragraphs 148(1)(a) to Insertion start (b.4) Insertion end and (d) of the Act;
(2) Subsection (1) is deemed to have come into force on April 1, 2023.
(xliii) of Class 57, 8 per cent,
(xliv) of Class 58, 20 per cent,
(xlv) of Class 59, 100 per cent, and
(xlvi) of Class 60, 30 per cent,
End of inserted block(a) if the property is not included in paragraph (1)(v) or in any of Classes 12, 13, 14, 15, 43.1, 43.2, 53, 54, 55, 56, Insertion start 59 Insertion end or in Class 43 in the circumstances described in paragraph (d),
(3) Subsections (1) and (2) apply to property acquired after 2021.
governing plan means a deferred profit sharing plan or a revoked plan, Insertion start a FHSA Insertion end , a registered disability savings plan, a registered education savings plan, a registered retirement income fund, a registered retirement savings plan or a TFSA; (régime d’encadrement)
(2) Subsection (1) is deemed to have come into force on April 1, 2023.
(I) equipment that is a component of property included in clauses (A) to (H) Insertion start or (L) to (O) Insertion end , if such equipment is purpose-built or designed exclusively to form an integral part of that property,
(L) nuclear energy equipment,
(M) heavy water used for nuclear energy generation,
(N) nuclear fuels used for nuclear energy generation, and
(O) nuclear fuel rods, and
End of inserted block(3) Subsections (1) and (2) apply to taxation years that begin after 2023.
(2) Subsection (1) applies in respect of a taxation year of a foreign affiliate of a taxpayer that ends in a taxation year of the taxpayer beginning on or after October 1, 2023. However, subsection (1) also applies in respect of a taxation year of a foreign affiliate of a taxpayer that ends in a taxation year of the taxpayer that begins before, and ends after, October 1, 2023 if
(a) any of the taxpayer’s three immediately preceding taxation years was, because of a transaction or event or a series of transactions or events, shorter than it would have been in the absence of that transaction, event or series; and
(b) it can reasonably be considered that one of the purposes of the transaction, event or series was to defer the application of paragraph 12(1)(l.2) of the Act, as enacted by subsection 2(1), or the application of section 18.2 or 18.21 of the Act, as enacted by subsection 7(1), to the taxpayer.
(iii) in any other case, the amount that would be the income from the active business for the year under Part I of the Act if the business were carried on in Canada, the affiliate were resident in Canada and the Act were read without reference to subsections Insertion start 12.7(3) Insertion end , 18(4), Insertion start 18.4(4) Insertion end , 80(3) to (12), (15) and (17) and 80.01(5) to (11) and sections 80.02 to 80.04,
(iii) in any other case, the amount that would be the income from the active business for the year under Part I of the Act if the business were carried on in Canada, the affiliate were resident in Canada and the Act were read without reference to subsections 12.7(3), 18(4), Insertion start 18.2(2) Insertion end , 18.4(4), 80(3) to (12), (15) and (17) and 80.01(5) to (11) and sections 80.02 to 80.04,
(iii) the portion of any dividend received in the period and before the particular time by the subject affiliate from another foreign affiliate of the corporation (including, for greater certainty, any dividend deemed by subsection 5905(7) to have been received by the subject affiliate) that
Insertion start (A) Insertion end was prescribed by paragraph 5900(1)(a) to have been paid out of the payer affiliate’s exempt surplus in respect of the corporation,
(B) does not give rise to the application of subsection 12.7(3) in computing the foreign accrual property income of a foreign affiliate of a taxpayer, and
(C) would not be deemed under subsection 113(5) of the Act not to be a dividend received by the subject affiliate on a share of the capital stock of the payer affiliate for the purposes of section 113 of the Act, if the subject affiliate were a corporation resident in Canada,
End of inserted block(iv) the portion of any dividend received in the period and before the particular time by the subject affiliate from another foreign affiliate of the corporation (including, for greater certainty, any dividend deemed under subsection 5905(7) to have been received by the subject affiliate) that
Insertion start (A) Insertion end was prescribed under paragraph 5900(1)(a.1) to have been paid out of the payer affiliate’s hybrid surplus in respect of the corporation,
(B) does not give rise to the application of subsection 12.7(3) in computing the foreign accrual property income of a foreign affiliate of a taxpayer, and
(C) would not be deemed under subsection 113(5) of the Act not to be a dividend received by the subject affiliate on a share of the capital stock of the payer affiliate for the purposes of section 113 of the Act, if the subject affiliate were a corporation resident in Canada, or
End of inserted block(b) in respect of foreign accrual property income is the amount that would be its foreign accrual property income for the year, if the formula in the definition foreign accrual property income in subsection 95(1) of the Act were read without reference to F and F.1 in that formula and the amount determined for E in that formula were the amount determined under paragraph (a) of the description of E in that formula Insertion start and the Act were read without regard to its clause 95(2)(f.11)(ii)(D) Insertion end , minus the portion of any income or profits tax paid to the government of a country for the year by the affiliate that can reasonably be regarded as tax in respect of that income,
(I) the amount Insertion start that would be Insertion end determined for D in the formula in the definition foreign accrual property income in subsection 95(1) of the Act for the year, Insertion start if the Act were read without regard to its clauses 95(2)(f.11)(ii)(D) and (E) Insertion end ,
(iii) the portion of any dividend received in the period and before the particular time by the subject affiliate from another foreign affiliate of the corporation (including, for greater certainty, any dividend deemed by subsection 5905(7) to have been received by the subject affiliate) that
Insertion start (A) Insertion end was prescribed by paragraph 5900(1)(b) to have been paid out of the payer affiliate’s taxable surplus in respect of the corporation,
(B) does not give rise to the application of subsection 12.7(3) in computing the foreign accrual property income of a foreign affiliate of a taxpayer, and
(C) would not be deemed under subsection 113(5) of the Act not to be a dividend received by the subject affiliate on a share of the capital stock of the payer affiliate for the purposes of section 113 of the Act, if the subject affiliate were a corporation resident in Canada,
End of inserted block(8) Subsection (1) applies in respect of payments arising on or after July 1, 2022.
(9) Subsections (2), (5) and (6) apply in respect of a taxation year of a foreign affiliate of a taxpayer that ends in a taxation year of the taxpayer beginning on or after October 1, 2023. However, subsections (2), (5) and (6) also apply in respect of a taxation year of a foreign affiliate of a taxpayer that ends in a taxation year of the taxpayer that begins before, and ends after, October 1, 2023 if
(a) any of the taxpayer’s three immediately preceding taxation years was, because of a transaction or event or a series of transactions or events, shorter than it would have been in the absence of that transaction, event or series; and
(b) it can reasonably be considered that one of the purposes of the transaction, event or series was to defer the application of paragraph 12(1)(l.2) of the Act, as enacted by subsection 2(1), or the application of section 18.2 or 18.21 of the Act, as enacted by subsection 7(1), to the taxpayer.
(10) Subsections (3), (4) and (7) apply in respect of any dividend received on or after July 1, 2024.
(p) a FHSA.
End of inserted block(2) Subsection (1) is deemed to have come into force on April 1, 2023.
(l) a FHSA.
End of inserted block(2) Subsection (1) is deemed to have come into force on April 1, 2023.
Property not included in Class 1, 2, 7, 9, 11, 17, 30, Insertion start 57 Insertion end or Insertion start 58 Insertion end that is
(2) Subsection (1) is deemed to have come into force on January 1, 2022.
Property that would otherwise be included in another class in this Schedule ( Insertion start other than property included in Class 57 or 58 Insertion end ) that is
(2) Subsection (1) is deemed to have come into force on January 1, 2022.
Property (other than property included in Class 41.1, 41.2, Insertion start 57 Insertion end or Insertion start 58 Insertion end )
(2) Subsection (1) is deemed to have come into force on January 1, 2022.
Oil sands property (other than specified oil sands property Insertion start or property included in Class 57 or 58 Insertion end ) that
(2) Subsection (1) is deemed to have come into force on January 1, 2022.
Property, other than Insertion start specified Insertion end oil sands property, eligible mine development property or Insertion start property included in Class 57 or 58 Insertion end ,
(2) Subsection (1) is deemed to have come into force on January 1, 2022.
Property acquired after February 25, 1992 ( Insertion start other than property included in Class 57 or 58 Insertion end ) that
(2) Subsection (1) is deemed to have come into force on January 1, 2022.
(A) is used by the taxpayer, or by a lessee of the taxpayer, primarily for the purpose of storing Insertion start and discharging Insertion end electrical energy
(I) the electrical energy to be stored Insertion start and discharged Insertion end is Insertion start generated from other property that Insertion end is described in paragraph (c) or Insertion start in any other subparagraph of this paragraph Insertion end , or
(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 Insertion start and discharge Insertion end 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
(i) is situated in Canada, Insertion start including property described in subparagraph (d)(v) or (d)(xiv) that is installed in the exclusive economic zone of Canada Insertion end ,
Property ( Insertion start other than property included in Class 57 or 58 Insertion end ) that is a pipeline, including control and monitoring devices, valves and other equipment ancillary to the pipeline, that
(2) Subsection (1) is deemed to have come into force on January 1, 2022.
Property acquired after 2015 and before 2026 ( Insertion start other than property included in Class 57 or 58 Insertion end ) that is not included in Class 29, but that would otherwise be included in that class if
(2) Subsection (1) is deemed to have come into force on January 1, 2022.
Property that is part of a CCUS project of a taxpayer and that is
(a) equipment that is not expected to be used for hydrogen production, natural gas processing or acid gas injection and that
(i) is not oxygen production equipment and is to be used solely for capturing carbon dioxide
(A) that would otherwise be released into the atmosphere, or
(B) directly from the ambient air,
(ii) prepares or compresses captured carbon for transportation,
(iii) generates or distributes electrical energy, heat energy or a combination of electrical and heat energy, that directly and solely supports a qualified CCUS project, unless the equipment uses fossil fuels and emits carbon dioxide that is not subject to capture by a qualified CCUS project, and for greater certainty, not including equipment that supports the qualified CCUS project indirectly by way of an electrical utility grid or distribution equipment that expands the capacity of existing distribution equipment that supports the qualified CCUS project,
(iv) is transmission equipment that solely supports a qualified CCUS project by directly transmitting electrical energy from electrical generation equipment described in subparagraph (a)(iii) to the qualified CCUS project, or
(v) delivers, collects, recovers, treats or recirculates water, or a combination of any of those activities, that solely supports a qualified CCUS project;
(b) equipment that is to be used solely for transportation of captured carbon, including equipment used for the transportation system safety and integrity;
(c) equipment that is to be used solely for storage of captured carbon in a geological formation, including equipment used for the storage system safety and integrity, but not including equipment used for enhanced oil recovery;
(d) property that is physically and functionally integrated with the equipment described in any of paragraphs (a) to (c) (for greater certainty, excluding construction equipment, furniture, office equipment and vehicles) and that is ancillary equipment used solely to support the functioning of equipment described in any of paragraphs (a) to (c) within a CCUS process as part of
(i) an electrical system,
(ii) a fuel supply system,
(iii) a liquid delivery and distribution system,
(iv) a cooling system,
(v) a process material storage and handling and distribution system,
(vi) a process venting system,
(vii) a process waste management system, or
(viii) a utility air or nitrogen distribution system;
(e) equipment used for system safety and integrity or as part of a control or monitoring system solely to support the equipment described in any of paragraphs (a) to (d); or
(f) a building or other structure all or substantially all of which is used, or to be used, for the installation or operation of equipment described in any of paragraphs (a) to (e); or
(g) property that is used solely to
(i) convert another property that would not otherwise be described in any of paragraphs (a) to (f) if the conversion causes the other property to satisfy the description in any of paragraphs (a) to (f), or
(ii) refurbish property described in any of paragraphs (a) to (f) that is part of a CCUS project of the taxpayer.
Property that is part of a CCUS project of a taxpayer, and that is
(a) equipment to be used solely for using captured carbon in industrial production (including for enhanced oil recovery);
(b) property that is physically and functionally integrated with the equipment described in paragraph (a) (for greater certainty, excluding construction equipment, furniture, office equipment and vehicles) and that is ancillary equipment used solely to support the functioning of equipment described in paragraph (a) within a CCUS process as part of
(i) an electrical system,
(ii) a fuel supply system,
(iii) a liquid delivery and distribution system,
(iv) a cooling system,
(v) a process material storage and handling and distribution system,
(vi) a process venting system,
(vii) a process waste management system, or
(viii) a utility air or nitrogen distribution system;
(c) equipment used as part of a control, monitoring or safety system solely to support the equipment described in paragraph (a) or (b);
(d) a building or other structure all or substantially all of which is used, or to be used, for the installation or operation of equipment described in any of paragraphs (a) to (c); or
(e) property that is used solely to
(i) convert another property that would not otherwise be described in any of paragraphs (a) to (d) if the conversion causes the other property to satisfy the description in any of paragraphs (a) to (d), or
(ii) refurbish property described in any of paragraphs (a) to (d) that is part of a CCUS project of the taxpayer.
Intangible property (including property deemed to have been acquired under subsection 13(7.6) of the Act) that is not included in any other class and that is
(a) acquired for the purpose of determining the existence, location, extent or quality of a geological formation to permanently store captured carbon (other than for enhanced oil recovery) in Canada, including property acquired as a result of undertaking environmental studies or community consultations (including studies or consultations that are undertaken to obtain a right, licence or privilege for the purpose of determining the existence, location, extent or quality of a geological formation to permanently store captured carbon (other than for enhanced oil recovery)); and
(b) not acquired for the purpose of drilling or completing an oil or gas well or in building a temporary access road to, or preparing a site in respect of, any such well.
Intangible property (including property deemed to have been acquired under subsection 13(7.6) of the Act) not included in any other class that is
(a) acquired for the purposes of
(i) drilling or converting a well in Canada for the permanent storage of captured carbon (other than for enhanced oil recovery),
(ii) drilling or completing a well for the permanent storage of captured carbon (other than for enhanced oil recovery) in Canada, building a temporary access road to the well or preparing a site in respect of the well, or
(iii) drilling or converting a well in Canada for the purposes of monitoring pressure changes or other phenomena in a geological formation in which captured carbon is permanently stored (other than for enhanced oil recovery); or
(b) a right, licence or privilege
(i) for the purposes of determining the existence, location, extent or quality of a geological formation to permanently store captured carbon (other than for enhanced oil recovery), or
(ii) to permanently store captured carbon in dedicated geological storage.
End of inserted block(2) Subsection (1) is deemed to have come into force on January 1, 2022.
acceptable accounting principles means
(a) International Financial Reporting Standards; and
(b) other country-specific generally accepted accounting principles relevant for corporations that are traded on a public securities exchange outside Canada and that require two or more entities to prepare consolidated financial statements in a manner similar to International Financial Reporting Standards. (principes comptables acceptables)
assessment means an assessment or a reassessment under this Act. (cotisation)
bankrupt has the same meaning as in section 2 of the Bankruptcy and Insolvency Act. (failli)
Canadian digital services revenue means a taxpayer’s Canadian digital services revenue determined in accordance with Part 3. (revenu canadien de services numériques)
consolidated financial statements means financial statements in which the assets, liabilities, income, expenses and cash flows of the members of a group are presented as those of a single economic entity. (états financiers consolidés)
consolidated group means an ultimate parent entity and one or more other entities that are required to prepare consolidated financial statements for financial reporting purposes under acceptable accounting principles, or would be so required if equity interests in the ultimate parent entity were traded on a public securities exchange, the trading on which requires the use of acceptable accounting principles. (groupe consolidé)
constituent entity, of a consolidated group, means
(a) any entity of the group that
(i) is included in the consolidated financial statements of the group prepared in accordance with acceptable accounting principles, or
(ii) if the group is not required to prepare consolidated financial statements, or the statements are not prepared in accordance with acceptable accounting principles, would be required to be included in the consolidated financial statements of the group if equity interests in the ultimate parent entity of the group were traded on a public securities exchange, the trading on which requires the use of acceptable accounting principles; and
(b) any entity that is excluded from the group’s consolidated financial statements solely because of size or materiality or on the grounds that it is held for sale. (entité constitutive)
digital content means
(a) a digitally encoded text, video, image or sound recording;
(b) computer software; or
(c) any other thing that is digitally encoded and electronically transmittable.
It does not include a financial instrument. (contenu numérique)
digital interface means a website, application or other electronic medium through which data or digital content is collected, viewed, consumed, delivered or interacted with. (interface numérique)
entity means a person other than an individual. (entité)
financial instrument means
(a) a security that is
(i) a share of the capital stock of a corporation,
(ii) an income or capital interest in a trust,
(iii) a note, bond, debenture or other evidence of indebtedness, or
(iv) an interest in a partnership;
(b) money and a money market instrument that is a cheque, bill, certificate of deposit or derivative;
(c) property that is a digital representation of value that functions as a medium of exchange and that only exists at a digital address of a publicly distributed ledger, other than property that
(i) confers a right, whether immediate or future and whether absolute or contingent, to exchange or redeem the property for specific property or services or to convert the property into specific property or services,
(ii) is primarily for use within, or as part of, a gaming platform, an affinity or rewards program or a similar platform or program, or
(iii) is property prescribed by regulation;
(d) an insurance contract;
(e) an annuity contract;
(f) a precious metal;
(g) a commodity;
(h) an interest rate swap, currency swap, basis swap, interest rate cap, interest rate floor, commodity swap, equity swap, equity index swap or other similar agreement;
(i) a guarantee, acceptance or indemnity in respect of anything described in paragraph (a), (f), (g) or (h);
(j) any interest or right (including a futures or forward contract or option) in a future supply of anything described in any of paragraphs (a) to (i); and
(k) any other property prescribed by regulation. (effet financier)
first year of application means the calendar year that includes the day on which this Act comes into force or a subsequent calendar year, if any, prescribed by regulation in respect of a taxpayer. (première année d’application)
fiscal year means
(a) in the case of a taxpayer, an accounting period with respect to which the taxpayer prepares its financial statements; and
(b) in the case of a consolidated group, an accounting period with respect to which the ultimate parent entity of the group prepares its financial statements. (exercice)
global revenue threshold means an amount prescribed by regulation. (seuil de revenu global)
in-scope revenue threshold means an amount prescribed by regulation. (seuil de revenu dans le champ d’application)
Minister means the Minister of National Revenue. (ministre)
online marketplace means a digital interface that allows users to interact with other users and facilitates the supply of property or services, including digital content, between those users, but does not include a digital interface
(a) that has a single supplier of such property or services; or
(b) the main purpose of which is to
(i) provide payment services by facilitating the electronic transfer of funds,
(ii) make advances, grant credit or lend money, or
(iii) facilitate the supply of financial instruments. (marché en ligne)
online search engine means a digital interface that allows users to search the Web for digital content of multiple unrelated websites. (moteur de recherche en ligne)
online targeted advertisement means an advertisement — including, for greater certainty, any content that is prominently placed for the purpose of promotion — that
(a) consists of digital content;
(b) is placed on, or transmitted through, a digital interface; and
(c) is targeted at users based on any part of the user data associated with the users. (publicité en ligne ciblée)
person includes an individual, a trust, a partnership, a corporation and any other body of persons or organization of any kind. (personne)
prescribed means
(a) in the case of a form or the manner of filing a form, authorized by the Minister;
(b) in the case of the information to be given on or with a form, specified by the Minister;
(c) in the case of the manner of making or filing an election, authorized by the Minister; and
(d) in any other case, prescribed by regulation or determined in accordance with rules prescribed by regulation. (Version anglaise seulement)
property means any property, whether real or personal, movable or immovable, tangible or intangible or corporeal or incorporeal, and includes a right or interest of any kind, a share, a chose in action and, for greater certainty, money. (bien)
regulation means a regulation made under this Act. (règlement)
social media platform means a digital interface the main purpose of which is to allow users to find and interact with other users or with digital content generated by other users. (plateforme de médias sociaux)
supply means the provision of property or a service in any manner, including sale, transfer, barter, exchange, licence, rental, lease, gift or disposition. (fourniture)
taxable Canadian digital services revenue means a taxpayer’s taxable Canadian digital services revenue determined in accordance with Part 4. (revenu canadien de services numériques imposable)
taxpayer means an entity, whether or not the entity is liable to pay tax under this Act, that is not a corporation, commission or association all of the shares, or the capital, of which is held, directly or indirectly, by one or more persons each of whom is His Majesty in right of Canada or a province. (contribuable)
total consolidated group revenue, of a consolidated group for a fiscal year, means the revenue reported in the group’s consolidated financial statements for the year or, if the statements are not prepared in accordance with acceptable accounting principles or no statements are prepared, the revenue that would be reported if the statements were prepared in accordance with International Financial Reporting Standards. However, total consolidated group revenue does not include the revenue of any entity that is not a taxpayer. (revenu consolidé total du groupe)
ultimate parent entity means an entity in respect of which the following conditions are met:
(a) the entity holds directly or indirectly a sufficient interest in one or more other entities so that it is required to prepare consolidated financial statements under acceptable accounting principles or would be so required if the equity interests in the entity were traded on a public securities exchange, the trading on which requires the use of acceptable accounting principles; and
(b) no other entity holds, directly or indirectly, an interest, as described in paragraph (a), in the entity. (entité mère ultime)
user means any individual (other than an individual acting in the course of an entity’s business) or entity (including an individual acting in the course of the entity’s business) that interacts (directly or indirectly in any manner whatever) with a digital interface, but does not include
(a) the person that operates the digital interface;
(b) if an entity operates the digital interface and the entity is a constituent entity of a consolidated group, another constituent entity of the group; or
(c) an employee of an individual or entity described in paragraph (a) or (b) acting in the course of the individual’s or entity’s business. (utilisateur)
user data means representations, in any form, of information or concepts generated by, or collected from, a user’s interaction (directly or indirectly in any manner whatever) with a digital interface. (données d’utilisateurs)
(a) the amount or number so determined would, in the absence of this section, be a negative amount or number; or
(b) the result of the formula would be mathematically undefined.
(a) in the case of a taxpayer that is a constituent entity of a consolidated group,
(i) the acceptable accounting principles, if any, used in the preparation of the consolidated financial statements of the group, or
(ii) International Financial Reporting Standards; and
(b) in any other case, International Financial Reporting Standards.
(a) for the purposes of this Act, subject to paragraphs (b) and (c), the new corporation is deemed to be a separate person from each of the predecessor corporations;
(b) for the purposes of Part 6, the new corporation is deemed to be the same corporation as and a continuation of each predecessor corporation; and
(c) for the purposes of section 6,
(i) if only one of the predecessor corporations is an ultimate parent entity of a consolidated group, the new corporation is deemed to be the same corporation as the ultimate parent entity, and
(ii) if two or more of the predecessor corporations are each an ultimate parent entity of a consolidated group, the new corporation is deemed to be the same corporation as the ultimate parent entity of the consolidated group that had the greatest amount of total consolidated group revenue for a fiscal year of the group that ended in the immediately preceding calendar year.
(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.
(a) the taxpayer
(i) had total revenue equal to or greater than the global revenue threshold during a fiscal year of the taxpayer that ended in the immediately preceding calendar year,
(ii) was, at any time in the immediately preceding calendar year, a constituent entity of a consolidated group that had total consolidated group revenue equal to or greater than the global revenue threshold during a fiscal year of the group that ended in that immediately preceding calendar year, or
(iii) is, at any time in the particular calendar year, a constituent entity of a consolidated group that had total consolidated group revenue equal to or greater than the global revenue threshold during a fiscal year of the group that ended in the immediately preceding calendar year; and
(b) at least one of the following conditions is met:
(i) the Canadian digital services revenue of the taxpayer for the particular calendar year is greater than the in-scope revenue threshold, and
(ii) in respect of any consolidated group of which the taxpayer is a constituent entity at any time in the particular calendar year, the total of all amounts — each of which is the Canadian digital services revenue for the particular calendar year of an entity that is a constituent entity of the group at any time in the particular calendar year — is greater than the in-scope revenue threshold.
(a) 3% of the taxpayer’s taxable Canadian digital services revenue for the first year of application, if the taxpayer satisfies the conditions set out in paragraphs (1)(a) and (b) in respect of that year, and
(b) nil, in any other case; and
(a) the amount determined by multiplying the rate prescribed by regulation in respect of the taxpayer by the total of all amounts each of which is the taxpayer’s taxable Canadian digital services revenue for a calendar year
(i) for which the taxpayer satisfies the conditions set out in paragraphs (1)(a) and (b), and
(ii) that is after 2021 and before the first year of application, and
(b) nil, if no calendar year meets the conditions set out in subparagraphs (a)(i) and (ii).
user located in Canada, at any time, means a user in respect of which it is reasonable to conclude — based on the taxpayer’s user data associated with the user (including any of the billing, delivery or shipping address, or the phone number area code, most recently provided by the user, global navigation satellite systems data and Internet Protocol address data) — that the user is
(a) located in Canada at that time, in the case of
(i) online advertising services revenue that is in respect of an online targeted advertisement for which the targeting is based on the real-time location of users, and
(ii) user data revenue that is based on the real-time location of users; and
(b) normally located in Canada at that time, in any other case. (utilisateur situé au Canada)
user located outside Canada, at any time, means a user (other than a user located in Canada) in respect of which it is reasonable to conclude — based on the taxpayer’s user data associated with the user (including any of the billing, delivery or shipping address, or the phone number area code, most recently provided by the user, global navigation satellite systems data and Internet Protocol address data) — that the user is
(a) located outside Canada at that time, in the case of
(i) online advertising services revenue that is in respect of an online targeted advertisement for which the targeting is based on the real-time location of users, and
(ii) user data revenue that is based on the real-time location of users; and
(b) normally located outside Canada at that time, in any other case. (utilisateur situé à l’extérieur du Canada)
user of determinable location, at any time, means a user that is, at that time, a user located in Canada or a user located outside Canada. (utilisateur dont l’emplacement est déterminable)
(a) the provision of access to, or the use of, the online marketplace;
(b) commissions and other fees for the facilitation of a supply between users of the online marketplace and for services ancillary to the supply;
(c) the provision of premium services, preferential listing services and other optional enhancements to the basic function, or changes to the standard commercial terms, of the services provided in respect of the online marketplace; and
(d) sources prescribed by regulation.
(a) from the provision of storage or shipping services, to the extent that the revenue reflects a reasonable rate of remuneration for the service;
(b) earned from a constituent entity of a consolidated group if, at the time the revenue is earned, the taxpayer is a constituent entity of the group; or
(c) from sources prescribed by regulation.
(a) physically performed and received in Canada,
(b) in respect of real property situated in Canada, or
(c) in respect of tangible personal property that is normally situated in Canada and that is situated in Canada at the time the service is performed;
(a) 2, if each of the supplier and the purchaser in respect of the supply is, at the time of the supply, a user located in Canada,
(b) 1, if only the supplier or only the purchaser in respect of the supply is, at the time of the supply, a user located in Canada, and
(c) nil, in any other case; and
(a) 2, if each of the supplier and the purchaser in respect of the supply is, at the time of the supply, a user located in Canada,
(b) 1, if only the supplier or only the purchaser in respect of the supply is, at the time of the supply, a user located in Canada, and
(c) nil, in any other case, and
(a) 2, if each of the supplier and the purchaser in respect of the supply is, at the time of the supply, a user of determinable location,
(b) 1, if only the supplier or only the purchaser in respect of the supply is, at the time of the supply, a user of determinable location, and
(c) nil, in any other case.
(a) the facilitation through a digital interface of the delivery of an online targeted advertisement;
(b) the supply of digital space for an online targeted advertisement; and
(c) sources prescribed by regulation in respect of online targeted advertisements.
(a) described in any of paragraphs 13(1)(a) to (d);
(b) in respect of an online targeted advertisement to the extent of any payment made by the taxpayer (or by another constituent entity of a consolidated group, if at the time the revenue is earned, the taxpayer is a constituent entity of the group) to another entity if the payment
(i) is in respect of the online targeted advertisement, and
(ii) would be online advertising services revenue of the other entity, if this section were read without reference to this paragraph or to section 21;
(c) earned from a constituent entity of a consolidated group if, at the time the revenue is earned, the taxpayer is a constituent entity of the group; or
(d) from sources prescribed by regulation.
(a) the provision of access to, or the use of, the social media platform;
(b) the provision of premium services and other optional enhancements to the basic function, or changes to the standard commercial terms, of the services provided in respect of the social media platform;
(c) the facilitation of an interaction between users, or between a user and digital content generated by other users, on the social media platform; and
(d) sources prescribed by regulation.
(a) described in any of paragraphs 13(1)(a) to (d) and 15(1)(a) to (c);
(b) from the provision of private communication services comprised of any combination of video calling, voice calling, email or instant messaging, if the sole purpose of the platform is to provide those services;
(c) earned from a constituent entity of a consolidated group if, at the time the revenue is earned, the taxpayer is a constituent entity of the group; or
(d) from sources prescribed by regulation.
(a) if the user data is collected from an online marketplace, a social media platform or an online search engine,
(i) the sale of the user data, or
(ii) the granting of access to the user data; and
(b) sources prescribed by regulation.
(a) described in any of paragraphs 13(1)(a) to (d), 15(1)(a) to (c) and 17(1)(a) to (d);
(b) earned from a constituent entity of a consolidated group if, at the time the revenue is earned, the taxpayer is a constituent entity of the group; or
(c) from sources prescribed by regulation.
(a) is in respect of the provision of a service, or the selling or granting of access to user data, by another constituent entity of the group; and
(b) would be Canadian digital services revenue of that other entity if the revenue were earned by the other entity.
deduction amount means an amount prescribed by regulation. (montant de la déduction)
relevant interval, of a taxpayer in a calendar year, means any period from one relevant time of the taxpayer in the year to the next relevant time of the taxpayer in the year. (intervalle pertinent)
relevant time, of a particular taxpayer in a calendar year, means
(a) the first moment of
(i) the in-scope period of the particular taxpayer if section 21 applies to the particular taxpayer for the calendar year, or
(ii) January 1 in any other case;
(b) the last moment of December 31;
(c) any time between the time referred to in paragraph (a) and the time referred to in paragraph (b) at which the particular taxpayer becomes, or ceases to be, a constituent entity of a consolidated group; and
(d) any time between the time referred to in paragraph (a) and the time referred to in paragraph (b) at which
(i) the particular taxpayer is a constituent entity of a consolidated group, and
(ii) any other taxpayer becomes, or ceases to be, a constituent entity of the group. (moment pertinent)
(a) if the particular taxpayer is not, at any time in the calendar year, a constituent entity of a consolidated group, the deduction amount, and
(b) in any other case, the total of all amounts each of which is an amount in respect of a relevant interval of the particular taxpayer in the calendar year determined by the formula
(i) if the particular taxpayer is a constituent entity of a consolidated group during the relevant interval, the total of all amounts each of which is the Canadian digital services revenue for the calendar year of a taxpayer that is a constituent entity of the consolidated group during the relevant interval (or, if the particular taxpayer does not determine all those amounts, nil), and
(ii) in any other case, the amount determined for E.
bankruptcy day, of a taxpayer, means a day on which a trustee becomes the trustee in bankruptcy of the taxpayer. (jour de la faillite)
bankruptcy period, of a taxpayer in respect of a bankruptcy day of the taxpayer, means the period during a calendar year (for which the taxpayer satisfies at least one of the conditions set out in subparagraphs 10(1)(a)(i) and (ii) and satisfies the condition set out in paragraph 10(1)(b)) beginning on the day after the bankruptcy day and ending on the earlier of the day on which the discharge of the trustee is granted under the Bankruptcy and Insolvency Act and December 31. (période de faillite)
bankrupt year, of a taxpayer in respect of a bankruptcy day of the taxpayer, means any calendar year (for which the taxpayer satisfies at least one of the conditions set out in subparagraphs 10(1)(a)(i) and (ii) and satisfies the condition set out in paragraph 10(1)(b)) between the calendar year in which the bankruptcy day occurs and the calendar year in which the discharge of the trustee is granted under the Bankruptcy and Insolvency Act. (année de faillite)
business includes a part of a business. (entreprise)
pre-bankruptcy period, of a taxpayer in respect of a bankruptcy day of the taxpayer, means the period during a calendar year (for which the taxpayer satisfies at least one of the conditions set out in subparagraphs 10(1)(a)(i) and (ii) and satisfies the condition set out in paragraph 10(1)(b)) beginning on January 1 and ending on the bankruptcy day. (période de pré-faillite)
pre-cease period, of a taxpayer in respect of a receivership day of the taxpayer, means the period during a particular calendar year (for which the taxpayer satisfies at least one of the conditions set out in subparagraphs 10(1)(a)(i) and (ii) and satisfies the condition set out in paragraph 10(1)(b)) after the year in which the receivership day occurs beginning on January 1 of the particular calendar year and ending on the day on which the receiver ceases to act as receiver of the taxpayer. (période antérieure à la cessation)
pre-discharge period, of a taxpayer in respect of a bankruptcy day of the taxpayer, means the period during a particular calendar year (for which the taxpayer satisfies at least one of the conditions set out in subparagraphs 10(1)(a)(i) and (ii) and satisfies the condition set out in paragraph 10(1)(b)) after the year in which the bankruptcy day occurs beginning on January 1 of the particular calendar year and ending on the day on which the discharge of the trustee is granted under the Bankruptcy and Insolvency Act. (période antérieure à la libération)
pre-receivership period, of a taxpayer in respect of a receivership day of the taxpayer, means the period during a calendar year (for which the taxpayer satisfies at least one of the conditions set out in subparagraphs 10(1)(a)(i) and (ii) and satisfies the condition set out in paragraph 10(1)(b)) beginning on January 1 and ending on the receivership day. (période antérieure à la mise sous séquestre)
receiver means a person that
(a) under the authority of a debenture, bond or other debt security, of a court order or of an Act of Parliament or of the legislature of a province, is empowered to operate or manage a business or a property of another person;
(b) is appointed by a trustee under a trust deed in respect of a debt security to exercise the authority of the trustee to manage or operate a business or a property of the debtor under the debt security;
(c) is appointed by a bank or an authorized foreign bank, as those terms are defined in section 2 of the Bank Act, to act as an agent or mandatary of the bank in the exercise of the authority of the bank under subsection 426(3) of that Act in respect of property of another person; or
(d) is appointed as a liquidator to liquidate the assets of a corporation or to wind up the affairs of a corporation.
It includes a person that is appointed to exercise the authority of a creditor under a debenture, bond or other debt security to operate or manage a business or a property of another person, but, if a person is appointed to exercise the authority of a creditor under a debenture, bond or other debt security to operate or manage a business or a property of another person, it does not include that creditor. (séquestre)
receivership day, of a taxpayer, means the earliest day on which a receiver
(a) is vested with authority to manage, operate, liquidate or wind up any business or property or to manage and care for the affairs and assets of the taxpayer; and
(b) is in possession of or controls and manages the affairs and assets of the taxpayer. (jour de mise sous séquestre)
receivership period, of a taxpayer in respect of a receivership day of the taxpayer, means the period during a calendar year (for which the taxpayer satisfies at least one of the conditions set out in subparagraphs 10(1)(a)(i) and (ii) and satisfies the condition set out in paragraph 10(1)(b)) beginning on the day after the receivership day and ending on the earlier of the day on which the receiver ceases to act as receiver of the taxpayer and December 31. (période de mise sous séquestre)
relevant assets of a receiver means the part of the properties, businesses, affairs or assets of a person to which the receiver’s authority relates. (actif pertinent)
year in receivership, of a taxpayer in respect of a receivership day of the taxpayer, means any calendar year (for which the taxpayer satisfies at least one of the conditions set out in subparagraphs 10(1)(a)(i) and (ii) and satisfies the condition set out in paragraph 10(1)(b)) between the calendar year in which the receivership day occurs and the calendar year in which the receiver ceases to act as receiver of the taxpayer. (année sous séquestre)
(a) section 10 does not apply in respect of the particular calendar year, any bankrupt year or a calendar year during which the pre-discharge period, if any, occurs;
(b) the taxpayer must pay a tax in respect of the pre-bankruptcy period equal to 3% of the taxpayer’s taxable Canadian digital services revenue for the pre-bankruptcy period determined in accordance with section 31;
(c) subject to subsection (2), the trustee, and not the taxpayer, must pay a tax in respect of each of the bankruptcy period and, if any, the pre-discharge period equal to 3% of the taxpayer’s taxable Canadian digital services revenue for the period determined in accordance with section 31; and
(d) subject to subsection (2), the trustee, and not the taxpayer, must pay a tax in respect of any bankrupt year equal to 3% of the taxpayer’s taxable Canadian digital services revenue for the year.
(a) sections 45 and 49 do not apply to the taxpayer in respect of the particular calendar year, any bankrupt year or a calendar year during which the pre-discharge period, if any, occurs;
(b) subject to subsection (2), the trustee must file all returns — in the form and manner, and containing the information, prescribed by the Minister — in respect of any year or period referred to in paragraph 27(1)(c) or (d) for which the trustee is liable to pay tax greater than nil, and pay the tax payable under this Act in respect of the year or period, on or before the day that is 90 days after the last day of the year or period; and
(c) subject to subsection (2), the trustee must, unless the Minister waives the requirement in writing, file any return that is required to be filed by the taxpayer in respect of the calendar year immediately preceding the particular calendar year or in respect of the pre-bankruptcy period — in the form and manner, and containing the information, prescribed by the Minister — on or before the day that is 90 days after the bankruptcy day.
(a) if the receiver is a receiver-manager,
(i) section 10 does not apply in respect of the particular calendar year, any year in receivership or a calendar year during which the pre-cease period, if any, occurs,
(ii) the taxpayer must pay a tax in respect of the pre-receivership period equal to 3% of the taxpayer’s taxable Canadian digital services revenue for the pre-receivership period determined in accordance with section 31,
(iii) the receiver-manager, and not the taxpayer, must pay a tax in respect of each of the receivership period and, if any, the pre-cease period equal to 3% of the taxpayer’s taxable Canadian digital services revenue for the period determined in accordance with section 31, and
(iv) the receiver-manager, and not the taxpayer, must pay a tax in respect of any year in receivership equal to 3% of the taxpayer’s taxable Canadian digital services revenue for the year; and
(b) in any other case,
(i) the receiver must pay
(A) a tax in respect of each of the receivership period and, if any, the pre-cease period equal to 3% of the portion of the taxpayer’s Canadian digital services revenue for the period (determined in accordance with section 31) that is online marketplace services revenue, online advertising services revenue, social media services revenue and user data revenue earned by the taxpayer for the period that can reasonably be considered to relate to the relevant assets of the receiver, and
(B) a tax in respect of any year in receivership, equal to 3% of the portion of the taxpayer’s Canadian digital services revenue for the year that is online marketplace services revenue, online advertising services revenue, social media services revenue and user data revenue earned by the taxpayer for the year that can reasonably be considered to relate to the relevant assets of the receiver, and
(ii) for the purpose of section 10, the taxpayer’s taxable Canadian digital services revenue in respect of the particular calendar year, any years in receivership and a calendar year during which the pre-cease period, if any, occurs is determined as if online marketplace services revenue, online advertising services revenue, social media services revenue and user data revenue of the taxpayer for the year did not include revenue that is included in the portion of Canadian digital services revenue described in clause (b)(i)(A) or (B).
(a) if the receiver is a receiver-manager,
(i) sections 45 and 49 do not apply to the taxpayer in respect of the particular calendar year, any year in receivership or a calendar year during which the pre-cease period, if any, occurs,
(ii) the receiver-manager must file all returns — in the form and manner, and containing the information, prescribed by the Minister — in respect of any year or period referred to in subparagraph 29(a)(iii) or (iv) for which the receiver-manager is liable to pay tax greater than nil, and pay the tax payable under this Act in respect of the year or period, on or before the day that is 90 days after the last day of the year or period, and
(iii) the receiver-manager must, unless the Minister waives the requirement in writing, file any return that is required to be filed by the taxpayer in respect of the calendar year immediately preceding the particular calendar year or in respect of the pre-receivership period — in the form and manner, and containing the information, prescribed by the Minister — on or before the day that is 90 days after the receivership day; and
(b) in any other case, the receiver must file all returns — in the form and manner, and containing the information, prescribed by the Minister — in respect of any year or period referred to in subparagraph 29(b)(i) for which the receiver is liable to pay tax greater than nil, and pay the tax payable under this Act in respect of the year or period, on or before the day that is 90 days after the last day of the year or period.
(a) the references in Parts 3 and 4 to “calendar year” (except in the descriptions of E and F in section 24) are to be read as references to “pre-bankruptcy period”, “bankruptcy period”, “pre-discharge period”, “pre-receivership period”, “receivership period” or “pre-cease period”, as the case may be;
(b) the references in Parts 3 and 4 to “year” (except in the descriptions of E and F in section 24) are to be read as references to “period”;
(c) paragraphs (a) and (b) of the definition relevant time in section 23 are to be read as follows:
“(a) the first moment of the first day of the period;
(b) the last moment of the last day of the period;”
(d) paragraph (a) of the description of B in section 24 does not apply; and
(e) subsections 12(2) and (3) do not apply.
(a) all amounts that are payable under this Act by the taxpayer or the receiver (in that capacity) in respect of any calendar year, or period, preceding the calendar year, or period, during which the distribution is made; and
(b) all amounts that can reasonably be expected to become payable under this Act by the taxpayer or the receiver (in that capacity) in respect of the calendar year or period during which the distribution is made, or any previous calendar year or period.
(a) the payment of all amounts that are required to be paid by the partnership under this Act before or during the period during which the member is a member of the partnership or, if the member was a member of the partnership at the time the partnership was dissolved, after the dissolution of the partnership, except that
(i) the member is liable for the payment of amounts that become payable before the period only to the extent of the property that is regarded as property of the partnership under the relevant laws of general application to partnerships in force in a province or other jurisdiction, and
(ii) the payment by the partnership or by any member of the partnership of an amount in respect of the liability discharges their liability to the extent of that amount; and
(b) all other obligations under this Act that arose before or during that period for which the partnership is liable or, if the member was a member of the partnership at the time the partnership was dissolved, the obligations that arose upon or as a consequence of the dissolution.
tax benefit means a reduction, avoidance or deferral of tax or other amount payable under this Act or an increase in a refund of tax or other amount under this Act. (avantage fiscal)
tax consequences to a person means the amount of tax or other amount payable by, or refundable to, the person under this Act, or any other amount that is relevant for the purposes of computing that amount. (attribut fiscal)
transaction includes an arrangement or event. (opération)
(a) that, in the absence of this section, would result, directly or indirectly, in a tax benefit, unless the transaction may reasonably be considered to have been undertaken or arranged primarily for bona fide purposes other than to obtain the tax benefit; or
(b) that is part of a series of transactions, which series, in the absence of this section, would result, directly or indirectly, in a tax benefit, unless the transaction may reasonably be considered to have been undertaken or arranged primarily for bona fide purposes other than to obtain the tax benefit.
(a) would, if this Act were read without reference to this section, result directly or indirectly in a misuse of the provisions of any one or more of
(i) this Act,
(ii) the Digital Services Tax Regulations, or
(iii) any other enactment that is relevant in computing tax or any other amount payable by or refundable to a person under this Act or in determining any amount that is relevant for the purposes of that computation; or
(b) would result directly or indirectly in an abuse having regard to those provisions, other than this section, read as a whole.
(a) any deduction, exemption or exclusion in computing Canadian digital services revenue, taxable Canadian digital services revenue or tax payable or any part thereof may be allowed or disallowed in whole or in part;
(b) any such deduction, exemption or exclusion, any revenue or other amount or part thereof may be allocated to any person;
(c) the nature of any payment or other amount may be recharacterized; and
(d) the tax effects that would otherwise result from the application of other provisions of this Act may be ignored.
Agency means the Canada Revenue Agency continued by subsection 4(1) of the Canada Revenue Agency Act. (Agence)
bank means a bank or an authorized foreign bank, as those terms are defined in section 2 of the Bank Act, that is not subject to the restrictions and requirements referred to in subsection 524(2) of that Act. (banque)
business number means any number (other than a Social Insurance Number) used by the Minister to identify a person for the purposes of this Act. (numéro d’entreprise)
Commissioner means, except in sections 39, 105 and 122, the Commissioner of Revenue appointed under section 25 of the Canada Revenue Agency Act. (commissaire)
judge, in respect of any matter, means a judge of a superior court having jurisdiction in the province in which the matter arises or a judge of the Federal Court. (juge)
official means a person who is employed in the service of, who occupies a position of responsibility in the service of, or who is engaged by or on behalf of, His Majesty in right of Canada or a province, or a person who was formerly so employed, who formerly occupied such a position or who formerly was so engaged. (fonctionnaire)
record means any material on which representations, in any form, of information or concepts are recorded or marked and that is capable of being read or understood by an individual or a computer system or other device. (registre)
registration threshold means the amount prescribed by regulation. (seuil d’inscription)
(a) in the case of a corporation, if the corporation is
(i) incorporated in Canada and not continued elsewhere, or
(ii) continued in Canada;
(b) in the case of a partnership, an unincorporated society, a club, an association or organization, or a branch thereof, if the member or participant, or a majority of the members or participants, having management and control thereof is or are resident in Canada at that time;
(c) in the case of a labour union, if it is carrying on activities as such in Canada and has a local union or branch in Canada at that time; and
(d) in the case of an individual, if the individual is deemed under any of paragraphs 250(1)(a) to (f) of the Income Tax Act to be resident in Canada at that time.
(a) January 31 of the year following the first year of application, if the taxpayer
(i) has Canadian digital services revenue greater than nil
(A) for the first year of application, or
(B) if the rate referred to in the description of B in subsection 10(2) is greater than nil, for any calendar year that is after 2021 and before the first year of application, and
(ii) would meet the conditions set out in paragraphs 10(1)(a) and (b) in respect of a calendar year for which the condition set out in subparagraph (i) is satisfied if the references to “in-scope revenue threshold” in paragraph 10(1)(b) were read as references to “registration threshold”; and
(b) January 31 of the year following a calendar year, after the first year of application, for which calendar year the taxpayer
(i) has Canadian digital services revenue greater than nil, and
(ii) would meet the conditions set out in paragraphs 10(1)(a) and (b) if the references to “in-scope revenue threshold” in paragraph 10(1)(b) were read as references to “registration threshold”.
(a) not to have applied for registration before the particular time; and
(b) not to have met the conditions set out in paragraph 41(1)(b) before the particular time.
(a) the particular calendar year is the first year of application and the taxpayer
(i) has Canadian digital services revenue greater than nil
(A) for the first year of application, or
(B) if the rate referred to in the description of B in subsection 10(2) is greater than nil, for any calendar year that is after 2021 and before the first year of application, and
(ii) meets the conditions set out in paragraphs 10(1)(a) and (b) in respect of a calendar year for which the condition set out in subparagraph (i) is satisfied; or
(b) the particular calendar year is after the first year of application and the taxpayer
(i) has Canadian digital services revenue greater than nil for the particular calendar year, and
(ii) meets the conditions set out in paragraphs 10(1)(a) and (b) in respect of the particular calendar year.
(a) the designated entity must act on behalf of the taxpayer for the purposes of this Part in respect of the year;
(b) any action taken by the designated entity on behalf of the taxpayer for the purposes of this Part in respect of the year is deemed to have been performed by the taxpayer; and
(c) the Minister must direct to the designated entity and the taxpayer any communication for the purposes of this Part as it applies to the taxpayer in respect of the year.
(a) the return, form or other document must be filed, the information must be provided or the election must be made within the time so extended; and
(b) in the case of a return, any penalty payable under section 84 in respect of the return must be determined as though the return were required to be filed on the day on which the extended time expires.
(a) a payment by the particular constituent entity on account of the particular constituent entity’s liability discharges, to the extent of the payment, the joint liability; and
(b) a payment by the other constituent entity on account of the other constituent entity’s liability discharges the particular constituent entity’s liability only to the extent that the payment operates to reduce that liability to an amount less than the amount in respect of which the particular constituent entity is, because of subsection (1), jointly and severally, or solidarily, liable.
(a) the amount determined by the formula
(b) the total of all amounts each of which is
(i) an amount that the transferor is liable to pay under this Act in respect of
(A) the calendar year that includes that time, or
(B) any preceding calendar year, or
(ii) interest or penalties (other than amounts included in subparagraph (i)) for which the transferor is liable at that time.
(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.
(a) the transferor is deemed to not be dealing at arm’s length with the transferee at all times in the transaction or series of transactions if
(i) the transferor and the transferee do not deal at arm’s length at any time during the period beginning immediately before the transaction or series of transactions and ending immediately after the transaction or series of transactions, and
(ii) it is reasonable to conclude that one of the purposes of undertaking or arranging the transaction or series of transactions is to avoid joint and several, or solidary, liability of the transferee and the transferor under this section for an amount payable under this Act;
(b) an amount that the transferor is liable to pay under this Act (including, for greater certainty, an amount that the transferor is liable to pay under this section, regardless of whether the Minister has made an assessment under subsection (5) in respect of that amount) is deemed to have become payable in the calendar year in which the property was transferred, if it is reasonable to conclude that one of the purposes of the transfer of the property is to avoid the payment of a future amount payable under this Act by the transferor or transferee; and
(c) the amount determined for A in paragraph (2)(a) is deemed to be the greater of
(i) the amount otherwise determined for A in paragraph (2)(a) without reference to this paragraph, and
(ii) the amount determined by the formula
(A) 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.
(a) a bank;
(b) a credit union;
(c) a corporation authorized under the laws of Canada or a province to carry on the business of offering its services as a trustee to the public; or
(d) a corporation that is authorized under the laws of Canada or a province to accept deposits from the public and that carries on the business of lending money on the security of real property or immovables or investing in indebtedness on the security of mortgages on real property or hypothecs on immovables.
(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.
(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.
(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).
(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.
(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.
(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.
(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.
(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.
(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.
(a) the application under subsection 73(1) is made within one year after the expiry of the time limited by this Act for objecting; and
(b) the person demonstrates that
(i) within the time limited by this Act for objecting, the person
(A) was unable to act or to give a mandate to act in the person’s name, or
(B) had a bona fide intention to object to the assessment,
(ii) given the reasons set out in the application under this section and the circumstances of the case, it would be just and equitable to grant the application, and
(iii) the application under subsection 73(1) was made as soon as circumstances permitted.
(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.
(a) the application under subsection (1) is made within one year after the expiry of the time limited by section 75 for appealing; and
(b) the person demonstrates that
(i) within the time limited by section 75 for appealing, the person
(A) was unable to act or to give a mandate to act in the person’s name, or
(B) had a bona fide intention to appeal,
(ii) given the reasons set out in the application and the circumstances of the case, it would be just and equitable to grant the application,
(iii) the application was made as soon as circumstances permitted, and
(iv) there are reasonable grounds for the appeal.
(a) an issue in respect of which the person has complied with subsection 72(2) in the notice and the relief sought in respect of the issue as specified in the notice; or
(b) an issue referred to in subsection 72(5), if the person was not required to file a notice of objection to the assessment that gave rise to the issue.
(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.
(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.
(a) the seven-year period referred to in subsection 70(1);
(b) the period within which a notice of objection to an assessment may be filed under section 72; and
(c) the period within which an appeal may be instituted under section 75.
(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.
(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.
(a) the seven-year period referred to in subsection 70(1);
(b) the period within which a notice of objection to an assessment may be filed under section 72; and
(c) the period within which an appeal may be instituted under section 75.
(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).
(a) where the assessment has been referred back to the Minister, reconsider the assessment and make a reassessment in accordance with the decision of the Court unless otherwise directed in writing by the person; and
(b) refund any overpayment resulting from the variation, vacation or reassessment.
The Minister may repay any tax, interest or penalties or surrender any security accepted by the Minister for tax, interest or penalties to that person or any other person that has filed another objection or instituted another appeal if, having regard to the reasons given on the disposition of the appeal, the Minister is satisfied that it would be just and equitable to do so, but for greater certainty, the Minister may, in accordance with the provisions of this Act, the Tax Court of Canada Act, the Federal Courts Act or the Supreme Court Act as they relate to appeals from decisions of the Tax Court of Canada or the Federal Court of Appeal, appeal from the decision of the Court despite any variation or vacation of any assessment by the Court or any reassessment made by the Minister under paragraph (a).
(a) the calendar year in which it was required to apply to register;
(b) the calendar year in which it registers (or is registered under section 44), if the year is different from the year referred to in paragraph (a); and
(c) the calendar years, if any, between the years referred to in paragraphs (a) and (b).
(a) an amount equal to 5% of the taxpayer’s tax payable under this Act in respect of the year that was unpaid on the day on which the return was required to be filed, and
(b) the amount obtained when 1% of that unpaid tax is multiplied by the number of complete months, not exceeding 12, beginning on the day on which the return was required to be filed and ending on the day on which the return is filed.
(a) fails to file a return in respect of the year as and when required by section 45;
(b) fails to comply with a demand sent under section 48 for a return in respect of the year; and
(c) was, before the day on which the return referred to in paragraph (a) was required to be filed, liable to a penalty under subsection (1) for a return in respect of any of the three preceding calendar years.
(a) an amount equal to 10% of the taxpayer’s tax payable under this Act in respect of the year that was unpaid on the day on which the return was required to be filed, and
(b) the amount obtained when 2% of that unpaid tax is multiplied by the number of complete months, not exceeding 20, beginning on the day on which the return was required to be filed and ending on the day on which the return is filed.
(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.
planning activity includes
(a) organizing or creating, or assisting in the organization or creation of, an arrangement, an entity, a plan or a scheme; and
(b) participating, directly or indirectly, in the selling of an interest in, or the promotion of, an arrangement, an entity, a plan, a property or a scheme. (activité de planification)
section 52 avoidance planning by a transferor or a transferee, means planning activity in respect of a transaction or series of transactions
(a) that is, or is part of, a section 52 avoidance transaction; and
(b) for which one of the purposes of the transaction or series of transactions is to reduce
(i) a transferee’s joint and several, or solidary, liability for tax owing under this Act by the transferor, or
(ii) the transferor’s or transferee’s ability to pay any amount that is or that may become owing under this Act. (planification d’évitement en vertu de l’article 52)
section 52 avoidance transaction means a transaction or series of transactions in respect of which
(a) the conditions set out in paragraph 52(7)(a) or (b) are met; or
(b) if subsection 52(7) applied to the transaction or series of transactions, the amount determined under subparagraph 52(7)(c)(ii) would exceed the amount determined under subparagraph 52(7)(c)(i). (opération d’évitement en vertu de l’article 52)
transferee refers to “transferee” as used in subsections 52(2) and (7). (bénéficiaire du transfert)
transferor refers to “transferor” as used in subsections 52(2) and (7). (auteur du transfert)
(a) 50% of the amount payable under this Act (determined without reference to this subsection), the joint and several, or solidary liability for which was sought to be avoided through the planning, and
(b) $100,000.
(a) in the case of a penalty payable under section 83, on the day on which the taxpayer was required to apply to register;
(b) in the case of a penalty payable under section 84, on the day on which the taxpayer was required to file the return; and
(c) in any other case, on the day on which the notice of original assessment of the penalty was sent.
(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).
(a) contravenes subsection 108(2); or
(b) knowingly contravenes an order made under subsection 108(7).
(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.
(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.
(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.
(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.
(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).
(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.
(a) a reasonable period of not less than 90 days for the provision of the information or record;
(b) a description of the information or record being sought; and
(c) the consequences under subsection (8) to the person of the failure to provide the information or record being sought within the period set out in the notice.
(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.
(a) the period set out in the notice of the requirement; and
(b) the period within which an assessment may be made under section 70.
(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.
authorized person means a person who is engaged or employed, or who was formerly engaged or employed, by or on behalf of His Majesty in right of Canada to assist in carrying out the provisions of this Act. (personne autorisée)
confidential information means information of any kind and in any form that relates to one or more persons and that is
(a) obtained by or on behalf of the Minister for the purposes of this Act; or
(b) prepared from information referred to in paragraph (a).
It does not include information that does not directly or indirectly reveal the identity of the person to whom it relates. (renseignement confidentiel)
court of appeal has the same meaning as in section 2 of the Criminal Code. (cour d’appel)
(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.
(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.
(a) provide to a person any confidential information that may reasonably be regarded as necessary for the purpose of
(i) the administration or enforcement of this Act, solely for that purpose, or
(ii) determining any liability or obligation of the person or any refund or other payment to which the person is or may become entitled under this Act;
(b) provide, allow to be provided, or allow inspection of or access to any confidential information to or by
(i) any person, or any person within a class of persons, that the Minister may authorize, subject to any conditions that the Minister may specify, or
(ii) any person otherwise legally entitled to the information because of an Act of Parliament, solely for the purposes for which that person is entitled to the information;
(c) provide confidential information
(i) to an official of the Department of Finance solely for the purposes of the administration of a federal-provincial agreement made under the Federal-Provincial Fiscal Arrangements Act,
(ii) to an official solely for the purpose of the formulation, evaluation or implementation of a fiscal or trade policy or for the purposes of the administration or enforcement of any Act of Parliament or law of a province that provides for the imposition or collection of a tax or duty or an international agreement relating to trade,
(iii) to an official solely for the purposes of the negotiation or implementation of an international agreement relating to trade, a tax treaty or an agreement for the exchange of information for tax purposes,
(iv) to an official as to the name, address, occupation, size or type of business of a person, solely for the purposes of enabling that department or agency to obtain statistical data for research and analysis,
(v) to an official solely for the purposes of setting off, against any sum of money that may be payable by His Majesty in right of Canada, a debt due to
(A) His Majesty in right of Canada, or
(B) His Majesty in right of a province on account of taxes payable to the province if an agreement exists between Canada and the province under which Canada is authorized to collect taxes on behalf of the province, or
(vi) to an official solely for the purposes of section 7.1 of the Federal-Provincial Fiscal Arrangements Act;
(d) provide confidential information to an official or any person employed by or representing the government of a foreign state, an international organization established by the governments of states, a community of states, or an institution of any such government or organization, in accordance with an international convention, agreement or other written arrangement relating to trade between the Government of Canada or an institution of the Government of Canada and the government of the foreign state, the organization, the community or the institution, solely for the purposes set out in that arrangement;
(e) provide confidential information, or allow the inspection of or access to confidential information, solely for the purposes of a provision contained in a listed international agreement or in a tax treaty (as those terms are defined in subsection 248(1) of the Income Tax Act);
(f) provide confidential information solely for the purposes of sections 23 to 25 of the Financial Administration Act;
(g) use confidential information to compile information in a form that does not directly or indirectly reveal the identity of the person to whom the information relates;
(h) use, or provide to any person, confidential information solely for a purpose relating to the supervision, evaluation or discipline of an authorized person by His Majesty in right of Canada in respect of a period during which the authorized person was employed by or engaged by or on behalf of His Majesty in right of Canada to assist in the administration or enforcement of this Act, to the extent that the information is relevant for that purpose;
(i) provide access to records of confidential information to the Librarian and Archivist of Canada or a person acting on behalf of or under the direction of the Librarian and Archivist, solely for the purposes of section 12 of the Library and Archives of Canada Act, and transfer such records to the care and control of such persons solely for the purposes of section 13 of that Act;
(j) use confidential information relating to a person to provide information to that person;
(k) provide confidential information to a police officer, as defined in subsection 462.48(17) of the Criminal Code, solely for the purpose of investigating whether an offence has been committed under the Criminal Code, or the laying of an information or the preferring of an indictment, if
(i) that information can reasonably be regarded as being relevant for the purpose of ascertaining the circumstances in which an offence under the Criminal Code may have been committed, or the identity of the person or persons who may have committed an offence, with respect to an official, or with respect to any person related to that official,
(ii) the official was or is engaged in the administration or enforcement of this Act, and
(iii) the offence can reasonably be considered to be related to that administration or enforcement; and
(l) provide information to a law enforcement officer of an appropriate police organization in the circumstances described in subsection 211(6.4) of the Excise Act, 2001.
(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.
(a) to that person; and
(b) with the consent of that person, to any other person.
(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.
action means an action to collect a tax debt of a person and includes a proceeding in a court and anything done by the Minister under any of sections 112 to 117. (action)
legal representative of a person means a trustee in bankruptcy, an assignee, a liquidator, a curator, a receiver of any kind, a trustee, an heir, an administrator, an executor, a liquidator of a succession, a committee, or any other similar person, administering, winding up, controlling or otherwise dealing in a representative or fiduciary capacity with any property, business, commercial activity or estate or succession that belongs or belonged to, or that is or was held for the benefit of, the person or the person’s estate or succession. (représentant légal)
tax debt means any amount payable by a person under this Act. (dette fiscale)
(a) begins
(i) if a notice of assessment in respect of the tax debt, or a notice referred to in subsection 118(1) in respect of the tax debt, is sent to or served on the person, on the day that is 90 days after the day on which the last one of those notices is sent or served, and
(ii) if no notice referred to in subparagraph (i) in respect of the tax debt was sent or served, on the earliest day on which the Minister can commence an action to collect that tax debt, and
(b) ends, subject to subsection (9), on the day that is 10 years after the day on which it begins.
(a) the person acknowledges the tax debt in accordance with subsection (7);
(b) all or part of the tax debt is reduced by the application of a refund under section 61;
(c) the Minister commences an action to collect the tax debt; or
(d) the Minister assesses, under this Act, another person in respect of the tax debt.
(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.
(a) the Minister has postponed the collection action against the person under subsection (11) in respect of the tax debt;
(b) the Minister has accepted and holds security in lieu of payment of the tax debt;
(c) if the person was resident in Canada on the applicable day referred to in paragraph (5)(a) in respect of the tax debt, the person is non-resident;
(d) the Minister may not, because of any of subsections 110(2) to (5), take any of the actions referred to in subsection 110(1) in respect of the tax debt; and
(e) an action that the Minister may otherwise take in respect of the tax debt is restricted or not permitted under any provision of the Bankruptcy and Insolvency Act, of the Companies’ Creditors Arrangement Act or of the Farm Debt Mediation Act.
(a) commence legal proceedings in a court;
(b) certify the amount under section 112;
(c) require a person to make a payment under subsection 113(1);
(d) require an institution (within the meaning of subsection 113(2)) or a person to make a payment under subsection 113(2);
(e) require a person to turn over moneys under subsection 116(1); and
(f) give a notice, issue a certificate or make a direction under subsection 117(1).
(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.
(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.
(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.
(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.
(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.
(a) to set out, as the amount payable by the debtor, the total of amounts payable by the debtor without setting out the separate amounts making up that total; and
(b) to refer to the rate of interest to be charged on the separate amounts making up the amount payable in general terms as interest at the rate prescribed by regulation applicable from time to time on amounts payable to the Receiver General for Canada, without indicating the specific rates of interest to be charged on each of the separate amounts or to be charged for any period.
(a) a bank, credit union, trust company or other similar person (in this section referred to as an “institution”) will loan or advance money to, or make a payment on behalf of, or make a payment in respect of a negotiable instrument issued by, a debtor that is indebted to the institution and that has granted security in respect of the indebtedness, or
(b) a person, other than an institution, will loan or advance money to, or make a payment on behalf of, a debtor who the Minister knows or suspects
(i) is employed by, or is engaged in providing services or property to, that person or was or will be, within 90 days, so employed or engaged, or
(ii) if that person is a corporation, is not dealing at arm’s length with that person,
the Minister may, by notice in writing, require the institution or person, as the case may be, to pay in whole or in part to the Receiver General for Canada on account of the debtor’s liability under this Act the money that would otherwise be so loaned, advanced or paid.
(a) the total of money so loaned, advanced or paid, and
(b) the amount that the institution or person was required under that subsection to pay to the Receiver General for Canada.
(a) personal service on the person; or
(b) service in accordance with the directions, if any, of a judge.
(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.
(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.
(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.
(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.
(a) the official has knowledge of the facts in the particular case;
(b) the request, notice or demand was served personally on a named day on the person to which it was directed; and
(c) the official identifies as an exhibit attached to the affidavit a true copy of the request, notice or demand.
(a) the official has knowledge of the facts in the particular case;
(b) the notice was sent electronically to the person on a named day; and
(c) the official identifies as exhibits attached to the affidavit copies of
(i) an electronic message confirming that the notice has been sent to the person, and
(ii) the notice.
(a) prescribing anything that, by this Act, is to be prescribed, determined or regulated by regulation;
(b) requiring any taxpayer to provide its registration number to any class of persons required to make a return containing that registration number;
(c) requiring any person to provide any information, including the person’s name and address, to any class of persons required to make a return containing that information;
(d) requiring any individual to provide the Minister with the individual’s Social Insurance Number;
(e) prescribing the evidence required to establish facts relevant to assessments under this Act;
(f) requiring any class of persons to make information returns respecting any class of information required in connection with the administration or enforcement of this Act;
(g) distinguishing among any class of persons, property or activities; and
(h) generally to carry out the purposes and provisions of this Act.
(a) has a relieving effect only;
(b) corrects an ambiguous or deficient enactment that was not in accordance with the objects of this Act or the Digital Services Tax Regulations;
(c) is consequential on an amendment to this Act that is applicable before the day on which the regulation is published in the Canada Gazette; or
(d) gives effect to a budgetary or other public announcement, in which case the regulation is not, unless paragraph (a), (b) or (c) applies, to have effect before the day on which the announcement was made.
(a) in prescribing an amount under subsection 123(1), the Governor in Council may prescribe a positive or negative amount; and
(b) in prescribing a manner of determining an amount under subsection 123(1), the Governor in Council may prescribe a manner that could result in a positive or negative amount.
(2) Subsection (1) comes into force on the day that is fixed by order of the Governor in Council, but not earlier than January 1, 2024. In fixing that day, the Governor in Council must consider
(a) the intent of the October 8, 2021 Statement on a Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy; and
(b) Canada’s preference for a multilateral approach to addressing the tax challenges arising from the digitalization of the economy and the status of international negotiations and implementation in respect of such an approach.
Act means the Digital Services Tax Act. (Loi)
quarter means any period of three consecutive months beginning on January 1, April 1, July 1 or October 1. (trimestre)
(a) the rate that is the simple arithmetic mean, expressed as a percentage per year and rounded to the next higher whole percentage if the mean is not a whole percentage, of all amounts each of which is the average equivalent yield, expressed as a percentage per year, of Government of Canada Treasury Bills that mature approximately three months after their date of issue and that are sold at auctions of Government of Canada Treasury Bills during the first month of the quarter preceding the particular quarter, and
(b) 4%.
(2) The Digital Services Tax Regulations, as made by subsection (1), come into force on the same day as subsection 96(1) of this Act.
(3) The Digital Services Tax Regulations, as made by subsection (1), are deemed
(a) to have been made under section 123 of the Digital Services Tax Act;
(b) for the purposes of subsection 5(1) of the Statutory Instruments Act, to have been transmitted to the Clerk of the Privy Council for registration; and
(c) to have met the publication requirements of subsection 11(1) of the Statutory Instruments Act.
R.S., c. A-1
Digital Services Tax Act
Loi sur la taxe sur les services numériques
End of inserted blockand a corresponding reference to “section 108”.
(2) Subsection (1) comes into force on the same day as subsection 96(1) of this Act.
R.S., c. B-3; 1992, c. 27, s. 2
(j) the Digital Services Tax Act.
End of inserted block(2) Subsection (1) comes into force on the same day as subsection 96(1) of this Act.
R.S., c. C-46
(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 Insertion start the Digital Services Tax Act Insertion end to which access is sought or that is proposed to be examined or communicated; and
(2) Subsection (1) comes into force on the same day as subsection 96(1) of this Act.
R.S., c. E-15
(2) Subsection (1) comes into force on the same day as subsection 96(1) of this Act.
(2) Subsection (1) comes into force on the same day as subsection 96(1) of this Act.
(2) Subsection (1) comes into force on the same day as subsection 96(1) of this Act.
(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 Insertion start the Digital Services Tax Act Insertion end to be remitted or paid before that time by the registrant have been remitted or paid, and
(2) Subsection (1) comes into force on the same day as subsection 96(1) of this Act.
(2) Subsection (1) comes into force on the same day as subsection 96(1) of this Act.
(2) Subsection (1) comes into force on the same day as subsection 96(1) of this Act.
R.S., c. E-20; 2001, c. 33, s. 2(F)
(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 Insertion start the Digital Services Tax Act Insertion end ; or
(2) Subsection (1) comes into force on the same day as subsection 96(1) of this Act.
R.S., c. F-11
(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 Insertion start the Digital Services Tax Act Insertion end .
(2) Subsection (1) comes into force on the same day as subsection 96(1) of this Act.
R.S., c. T-2
(3) Subsections (1) and (2) come into force on the same day as subsection 96(1) of this Act.
(xi) section 74 or 76 of the Digital Services Tax Act; and
End of inserted block(2) Subsection (1) comes into force on the same day as subsection 96(1) of this Act.
(2) Subsection (1) comes into force on the same day as subsection 96(1) of this Act.
(2) Subsection (1) comes into force on the same day as subsection 96(1) of this Act.
R.S., c. 1 (2nd Supp.)
(2) Subsection (1) comes into force on the same day as subsection 96(1) of this Act.
R.S., c. 1 (5th Supp.)
(vi) as interest under the Digital Services Tax Act;
End of inserted block(2) Subsection (1) comes into force on the same day as subsection 96(1) of this Act.
(2) Subsection (1) comes into force on the same day as subsection 96(1) of this Act.
(2) Subsection (1) comes into force on the same day as subsection 96(1) of this Act.
1999, c. 17; 2005, c. 38, s. 35
(xi) the Digital Services Tax Act; or
End of inserted block(2) Subsection (1) comes into force on the same day as subsection 96(1) of this Act.
2002, c. 9, s. 5
(2) Subsection (1) comes into force on the same day as subsection 96(1) of this Act.
2002, c. 22
(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 Insertion start the Digital Services Tax Act Insertion end ; or
(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 Insertion start the Digital Services Tax Act Insertion end , or
(3) Subsections (1) and (2) come into force on the same day as subsection 96(1) of this Act.
(2) Subsection (1) comes into force on the same day as subsection 96(1) of this Act.
(2) Subsection (1) comes into force on the same day as subsection 96(1) of this Act.
2022, c. 5, s. 10
(2) Subsection (1) comes into force on the same day as subsection 96(1) of this Act.
2022, c. 10, s. 135
(2) Subsection (1) comes into force on the same day as subsection 96(1) of this Act.
(2) Subsection (1) comes into force on the same day as subsection 96(1) of this Act.
(2) Subsection (1) comes into force on the same day as subsection 96(1) of this Act.
(2) Subsection (1) comes into force on the same day as subsection 96(1) of this Act.
(2) Subsection (1) comes into force on the same day as subsection 96(1) of this Act.
(2) Subsection (1) comes into force on the same day as subsection 96(1) of this Act.
R.S., c. E-15
(a) resale;
(b) use by any board, commission, railway, public utility, university, manufactory, company or agency owned, controlled or operated by the government of the province or under the authority of the legislature or the lieutenant governor in council of the province; or
(c) use by Insertion start His Insertion end Majesty in right Insertion start of the province Insertion end , or by any agents or servants of Insertion start His Insertion end Majesty in right Insertion start of the province Insertion end , in connection with the manufacture or production of goods or use for other commercial or mercantile purposes.
(a) the particular person, and not His Majesty in right of the province, is entitled to apply for a payment under subsection (1) in respect of the purchase or importation; and
(b) the amount payable by the Minister under subsection (1) in respect of the purchase or importation shall be paid to the particular person, and not to His Majesty in right of the province.
End of inserted block(2) Subsection (1) applies in respect of any goods purchased or imported after 2021.
(b.1) a right (other than a right as a creditor), whether absolute or contingent, conferred by a corporation that does not have capital divided into shares to receive, either immediately or in the future, an amount that can reasonably be regarded as all or any part of the capital, revenue or income of the corporation,
End of inserted block(h) a guarantee, an acceptance or an indemnity in respect of anything described in Insertion start any of paragraphs Insertion end (a) Insertion start to (b.1) Insertion end , (d), (e) Insertion start and Insertion end (g), or
(3) Subsections (1) and (2) are deemed to have come into force on August 10, 2022.
(a) if the person is a partnership, a corporation that is controlled by
(i) the person,
(ii) a corporation that is controlled by the person,
(iii) a corporation that is related to a corporation described in subparagraph (ii), or
(iv) a combination of persons described in subparagraphs (i) to (iii); or
End of inserted blockInsertion start (b) Insertion end Insertion start Insertion end Insertion start in any other case Insertion end , a corporation related to the person.
(2) Subsection (1) applies to taxation years that begin after August 9, 2022.
(c) Insertion start the Insertion end day Insertion start specified Insertion end in the revocation Insertion start of the election Insertion end , which day is at least 365 days after the day specified in the election.
(a) be made jointly in prescribed form containing prescribed information by the member and the corporation;
(b) specify the day on which the revocation is to become effective; and
(c) be filed with the Minister in prescribed manner on or before
(i) the particular day that is the earlier of
(A) the day on or before which the member is required to file a return under Division V for the reporting period of the member that includes the day specified in the revocation, and
(B) the day on or before which the corporation is required to file a return under Division V for the reporting period of the corporation that includes the day specified in the revocation, or
(ii) any day after the particular day that the Minister may allow.
End of inserted block(3) Subsections (1) and (2) are deemed to have come into force on August 10, 2022.
(b) a group of Insertion start specified Insertion end partnerships, or of Insertion start specified Insertion end partnerships and corporations, each member of which is closely related, within the meaning of this section, to each other member of the group. (groupe admissible)
qualifying member of a qualifying group means a registrant that is a corporation resident in Canada or a Insertion start specified Insertion end partnership, Insertion start each member of which is resident in Canada Insertion end , and that meets the following conditions:
temporary member of a qualifying group means a Insertion start particular Insertion end corporation
(f) that receives a supply of property Insertion start that meets the following conditions Insertion end :
(i) Insertion start the supply is Insertion end made Insertion start by another Insertion end corporation that is a qualifying member of the qualifying group Insertion start and Insertion end in contemplation of a distribution made in the course of a reorganization Insertion start whereby the shares of the particular corporation are to be transferred upon the distribution to one or more corporations (in this definition referred to as the “transferee corporations”) Insertion end ,
(ii) the supplied property includes property that is neither a financial instrument nor property having a nominal value, and
(iii) all or substantially all of the supplied property (other than financial instruments and property having a nominal value)
(A) was last manufactured, produced, acquired or imported by the other corporation for consumption, use or supply exclusively in the course of the commercial activities of the other corporation,
(B) is not consumed, used or supplied by the particular corporation otherwise than exclusively in the course of its commercial activities, and
(C) may reasonably be expected to be consumed, used or supplied by the transferee corporations exclusively in the course of their commercial activities within 12 months after the time the supply is made;
End of inserted block(h) the shares of which are transferred Insertion start to the transferee corporations upon Insertion end the distribution Insertion start referred to in subparagraph (f)(i) Insertion end . (membre temporaire)
specified partnership means a partnership each member of which is a corporation or a partnership. (société de personnes déterminée)
End of inserted block(a) in the case where the other person is a Insertion start specified Insertion end partnership,
(B) a corporation, or a Insertion start specified Insertion end partnership, that is a member of a qualifying group of which the particular partnership is a member, or
(B) holds all or substantially all of the interest in a Insertion start specified Insertion end partnership that is a member of a qualifying group of which the other person is a member; and
(B) a corporation, or a Insertion start specified Insertion end partnership, that is a member of a qualifying group of which the particular partnership is a member, or
(B) a corporation, or a Insertion start specified Insertion end partnership, that is a member of a qualifying group of which the other person is a member, or
(iv) all or substantially all of the interest in a Insertion start specified Insertion end partnership is held by
(A) if the Insertion start specified Insertion end partnership is a member of a qualifying group of which the particular partnership is a member, the other person, and
(B) if the Insertion start specified Insertion end partnership is a member of a qualifying group of which the other person is a member, the particular partnership.
(c) a supply that is not a supply of property Insertion start that meets the conditions set out in paragraph (f) of the definition temporary member in subsection (1) Insertion end , if the recipient of the supply is a temporary member.
(16) Subsections (1) to (3) and (7) to (14) are deemed to have come into force on August 10, 2022.
(17) Subsections (4) to (6) are deemed to have come into force on August 9, 2022.
(18) Subsection (15) applies in respect of any supply made on or after August 9, 2022.
(k) consideration (other than interest referred to in paragraph (g), dividends referred to in paragraph (h) or consideration referred to in paragraph (k.1) Insertion start or (k.2) Insertion end ) for a specified non-arm’s length supply made to the qualifying taxpayer less the total of all amounts, each of which is a part of the value of the consideration and is loading;
(k.2) consideration (other than interest referred to in paragraph (g) or dividends referred to in paragraph (h)) for a supply that is deemed by subsection 150(1) to be a supply of a financial service and that is made to the qualifying taxpayer by another person, if the other person is a qualifying taxpayer throughout each specified year of the other person during which the other person makes an outlay, or incurs an expense, outside Canada for the purpose of making the supply;
End of inserted block(3) Subsections (1) and (2) apply to any specified year of a person that ends after November 16, 2005, except that for the purposes of applying the definition permitted deduction in section 217 of the Act, as amended by subsections (1) and (2), in respect of an amount of consideration for a specified non-arm’s length supply that became due, or was paid without having become due, on or before that day, paragraph (k) of that definition is to be read without reference to the words “less the total of all amounts, each of which is a part of the value of the consideration and is loading”.
(4) If, in assessing under section 296 of the Act tax payable by a person under Division IV of Part IX of the Act for a particular specified year of the person, an amount was taken into consideration as an external charge or as qualifying consideration for the particular specified year and as a result of the application of the definition permitted deduction in section 217 of the Act, as amended by subsections (1) and (2), the amount or part of the amount is neither qualifying consideration for any specified year of the person nor an external charge for any specified year of the person for which an election under subsection 217.2(1) of the Act is in effect, the person is entitled until the day that is one year after the day on which this Act receives royal assent to request in writing that the Minister of National Revenue make an assessment, reassessment or additional assessment for the purpose of taking into account that the amount or the part of the amount, as the case may be, is neither, if an election under subsection 217.2(1) of the Excise Tax Act is in effect for the particular specified year, an external charge for the particular specified year nor, in any other case, qualifying consideration for the particular specified year and, on receipt of the request, the Minister must with all due dispatch
(a) consider the request; and
(b) under section 296 of the Act, assess, reassess or make an additional assessment of the tax payable by the person under Division IV of Part IX of the Act for any specified year of the person and of any interest, penalty or other obligation of the person, solely for the purpose of taking into account that the amount or the part of the amount, as the case may be, is neither, if an election under subsection 217.2(1) of the Act is in effect for the particular specified year, an external charge for the particular specified year nor, in any other case, qualifying consideration for the particular specified year.
(2) Subsection (1) applies in respect of fiscal years of a person that end after August 9, 2022.
(a.01) despite paragraph (a), in the case of an assessment of the net tax of the person for a reporting period of the person that is made solely to take into account an amount of tax payable under section 218.01, more than seven years after the later of the day on or before which the person was required under section 238 to file a return for the period and the day the return was filed;
End of inserted block(2) Subsection (1) is deemed to have come into force on August 4, 2023.
practitioner, in respect of a supply of optometric, chiropractic, physiotherapy, chiropodic, podiatric, osteopathic, audiological, speech-language pathology, occupational therapy, psychological, Insertion start psychotherapy, counselling therapy Insertion end , midwifery, dietetic, acupuncture or naturopathic services, means a person who
(a) practises the profession of optometry, chiropractic, physiotherapy, chiropody, podiatry, osteopathy, audiology, speech-language pathology, occupational therapy, psychology, Insertion start psychotherapy, counselling therapy Insertion end , midwifery, dietetics, acupuncture or naturopathy as a naturopathic doctor, as the case may be,
(j.1) psychotherapy services;
(j.2) counselling therapy services;
End of inserted blockSOR/91-26; SOR/2011-56, s. 4; SOR/2013-71, s. 17
(a) a service that
(i) is supplied by a payment card network operator in its capacity as the acquirer for a transaction made by payment card, and
(ii) is supplied to the person that accepted the payment card used for the transaction or to a payment service provider (as defined in section 2 of the Retail Payment Activities Act) engaged by that person;
(b) a service that is rendered to a holder of a payment card and that is supplied by a payment card network operator in its capacity as the issuer of the payment card;
(c) a service, in respect of the settlement of a transaction made by payment card, that is supplied
(i) by a payment card network operator, in its capacity as the acquirer for the transaction, to the issuer of the payment card, or
(ii) by a payment card network operator, in its capacity as the issuer of the payment card, to the acquirer for the transaction; and
(d) a service, in respect of the settlement of a transaction made by payment card, that is supplied by a payment card network operator to the acquirer for the transaction and that consists of paying to the acquirer the amount charged to the payment card in respect of the transaction, but only if the issuer of the payment card supplies to the payment card network operator a service, in respect of the settlement of the transaction, of paying to the payment card network operator the amount charged to the payment card in respect of the transaction.
End of inserted block(2) Subsection (1) applies to a supply of a service for which
(a) any consideration becomes due after March 28, 2023 or is paid after that day without having become due; or
(b) all of the consideration became due or was paid before March 29, 2023.
SOR/91-36; SOR/2006-162, s. 2
(q) the operation of a pipeline, rail terminal or truck terminal if the pipeline, rail terminal or truck terminal is used for the transportation of oil, natural gas or related or ancillary products.
End of inserted block(2) Subsection (1) is deemed to have come into force on January 1, 1991.
SOR/91-45; SOR/2000-180, s. 1; SOR/2014-248, s. 15
intermediary of a person, means, in respect of a supply Insertion start made Insertion end by the person, a registrant
Insertion start (a) Insertion end Insertion start Insertion end Insertion start that Insertion end , acting as agent of the person or under an agreement with the person, causes or facilitates the making of the supply, Insertion start or Insertion end
(b) that is deemed under subsection 177(1.11) of the Act to have acted as agent of the person in making the supply; (intermédiaire)
End of inserted block(2) Subsection (1) is deemed to have come into force on April 20, 2021.
(a) where the total amount paid or payable shown on the supporting documentation in respect of the supply or, if the supporting documentation is in respect of more than one supply, the supplies, is less than Insertion start $100 Insertion end ,
(b) where the total amount paid or payable shown on the supporting documentation in respect of the supply or, if the supporting documentation is in respect of more than one supply, the supplies, is Insertion start $100 Insertion end or more and less than Insertion start $500 Insertion end ,
(c) where the total amount paid or payable shown on the supporting documentation in respect of the supply or, if the supporting documentation is in respect of more than one supply, the supplies, is Insertion start $500 Insertion end or more,
(4) Subsections (1) to (3) are deemed to have come into force on April 20, 2021.
(2) If subsection (1) has produced its effects, subsection 256.2(2.1) of the Excise Tax Act, as enacted by subsection (1), is deemed to have come into force on September 14, 2023.
(a) subsection 137(2) of this Act is deemed never to have come into force and is repealed; and
(b) paragraph 7(j.2) of Part II of Schedule V to the Excise Tax Act is replaced by the following:
(j.2) counselling therapy services;
2002, c. 22
(f) a vaping product licence, authorizing the person to
Insertion start (i) Insertion end manufacture vaping products, Insertion start or Insertion end
(ii) import packaged vaping products for stamping by the person.
End of inserted block(2) Subsection (1) comes into force or is deemed to have come into force on January 1, 2024.
(3) For greater certainty, a vaping product licence issued to a person before January 1, 2024 under paragraph 14(1)(f) of the Act, as it read immediately before that day, also authorizes the person under subparagraph 14(1)(f)(ii) of the Act, as enacted by subsection (1), as of that day.
(c) before the end of the second calendar month following the calendar month in which the licensee packages the vaping product,
End of inserted blockInsertion start (i) Insertion end the vaping product is stamped Insertion start by the licensee Insertion end to indicate that vaping duty has been paid, and
Insertion start (ii) Insertion end if the vaping product is to be entered in the duty-paid market of a specified vaping province, the vaping product is stamped Insertion start by the licensee Insertion end to indicate that additional vaping duty in respect of the specified vaping province has been paid.
(a) the vaping product is packaged in a package that has printed on it prescribed information; and
(b) before the end of the second calendar month following the calendar month in which the vaping product is released under the Customs Act,
(i) the vaping product is stamped by the licensee to indicate that vaping duty has been paid, and
(ii) if the vaping product is to be entered in the duty-paid market of a specified vaping province, the vaping product is stamped by the licensee to indicate that additional vaping duty in respect of the specified vaping province has been paid.
End of inserted block(3) Subsection (1) applies in respect of vaping products manufactured in Canada that are packaged after 2023.
(4) Subsection (2) applies in respect of vaping products that are imported into Canada or released, as defined in subsection 2(1) of the Customs Act, after 2023.
(a.1) that is a packaged vaping product imported by a vaping product licensee for stamping by the licensee;
End of inserted block(2) Subsection (1) applies in respect of vaping products that are imported into Canada or released, as defined in subsection 2(1) of the Customs Act, after 2023.
(a) in respect of vaping product drugs; or
(b) in prescribed circumstances.
End of inserted block(3) Subsection (1) is deemed to have come into force on October 1, 2022.
(4) Subsection (2) applies in respect of vaping products manufactured in Canada that are packaged after 2023 and in respect of vaping products that are imported into Canada or released, as defined in subsection 2(1) of the Customs Act, after 2023.
(2) Subsection (1) applies in respect of vaping products manufactured in Canada that are packaged after 2023 and in respect of vaping products that are imported into Canada or released, as defined in subsection 2(1) of the Customs Act, after 2023.
(a) in respect of a packaged vaping product that is imported by a vaping product licensee for stamping by the vaping product licensee; or
End of inserted blockInsertion start (b) Insertion end in prescribed circumstances.
(2) Subsection (1) applies in respect of vaping products that are imported into Canada or released, as defined in subsection 2(1) of the Customs Act, after 2023.
(2) Subsection (1) applies in respect of vaping products that are imported into Canada or released, as defined in subsection 2(1) of the Customs Act, after 2023.
(a) in the case of vaping products manufactured in Canada, by the vaping product licensee that packaged the vaping products and at the time they are Insertion start stamped Insertion end ;
(a.1) in the case of packaged vaping products that are imported by a vaping product licensee for stamping by the vaping product licensee, by the vaping product licensee and at the time they are stamped; and
End of inserted block(b) in the case of Insertion start any other Insertion end imported vaping products, by the importer, owner or other person that is liable under the Customs Act to pay duty levied under section 20 of the Customs Tariff or that would be liable to pay that duty on the vaping products if they were subject to that duty.
(2) Subsection (1) applies in respect of vaping products manufactured in Canada that are packaged after 2023 and in respect of vaping products that are imported into Canada or released, as defined in subsection 2(1) of the Customs Act, after 2023.
(a) in the case of vaping products manufactured in Canada, by the vaping product licensee that packaged the vaping products and at the time they are Insertion start stamped Insertion end ;
(a.1) in the case of packaged vaping products that are imported by a vaping product licensee for stamping by the vaping product licensee, by the vaping product licensee and at the time they are stamped; and
End of inserted block(b) in the case of Insertion start any other Insertion end imported vaping products, by the importer, owner or other person that is liable under the Customs Act to pay duty levied under section 20 of the Customs Tariff or that would be liable to pay that duty on the vaping products if they were subject to that duty.
(2) Subsection (1) applies in respect of vaping products manufactured in Canada that are packaged after 2023 and in respect of vaping products that are imported into Canada or released, as defined in subsection 2(1) of the Customs Act, after 2023.
(2) Subsection (1) comes into force or is deemed to have come into force on January 1, 2024.
Insertion start (a) Insertion end the Minister shall send a notice in writing of the revocation to the cannabis licensee and shall specify in the notice the fiscal month of the cannabis licensee for which the revocation becomes effective; Insertion start and Insertion end
Insertion start (b) Insertion end if the revocation becomes effective before the last day of a calendar quarter, the period beginning on the first day of the calendar quarter and ending immediately before the first day of Insertion start that Insertion end fiscal month is deemed to be a reporting period of the cannabis licensee.
(4) Subsections (1) to (3) are deemed to have come into force on April 1, 2023.
(a) if the contravention occurred in a specified vaping province, the amount determined for A, and
(b) in any other case, 0.
End of inserted block
(a) if the contravention occurred in a specified vaping province, the amount determined for A, and
(b) in any other case, 0.
End of inserted blockSOR/98-61
(b) tobacco Insertion start or vaping products (other than a vaping product drug as defined in section 2 of the Excise Act, 2001 Insertion end ) imported by a person who has not attained 18 years of age.
SOR/2003-115
(b) in the case of a tobacco licence or a vaping product licence, be sufficient to ensure payment of the amount of duty referred to in paragraph 160(b) of the Act up to a maximum amount of $5 million per licence; and
(c) in the case of a cannabis licence,
(i) if the licensee is authorized under subsection 159.2(2) of the Act to have reporting periods that are calendar quarters, be sufficient to ensure payment of one-third of the amount of duty referred to in paragraph 160(b) of the Act up to a maximum amount of $5 million per licence, and
(ii) in any other case, be sufficient to ensure payment of the amount of duty referred to in paragraph 160(b) of the Act up to a maximum amount of $5 million per licence.
End of inserted block(3) Subsections (1) and (2) are deemed to have come into force on April 1, 2023.
SOR/2003-288; 2018, c. 12, s. 108; 2022, c. 10, s. 116
(a) one of the following:
End of inserted blockInsertion start (i) Insertion end the vaping product licensee’s name and address,
Insertion start (ii) Insertion end the vaping product licensee’s licence number, or
Insertion start (iii) Insertion end if the vaping product is packaged by the vaping product licensee for another person, the person’s name and the address of their principal place of business; Insertion start and Insertion end
(b) the volume in millilitres of the vaping substance in liquid form, and the weight in grams of the vaping substance in solid form, contained in each vaping device or immediate container in the package and the number of vaping devices and immediate containers in the package.
End of inserted block(3) Subsection (1) comes into force or is deemed to have come into force on January 1, 2024.
(4) Subsection (2) comes into force on the day that is six months after the first day of the month following the month in which this Act receives royal assent.
(a) if the vaping product was imported by a vaping product licensee, the licensee’s name and address or vaping product licence number;
(b) if the vaping product was imported by a person other than a vaping product licensee, the person’s name and address; Insertion start and Insertion end
(c) the volume in millilitres of the vaping substance in liquid form, and the weight in grams of the vaping substance in solid form, contained in each vaping device or immediate container in the package and the number of vaping devices and immediate containers in the package.
End of inserted block(2) Subsection (1) comes into force on the day that is six months after the first day of the month following the month in which this Act receives royal assent.
(2) Subsection (1) comes into force or is deemed to have come into force on January 1, 2024.
(b) a person that has in their possession vaping excise stamps only for the purpose of applying adhesive to the stamps on behalf of the Insertion start person Insertion end to which the stamps are issued.
(2) Subsection (1) is deemed to have come into force on June 23, 2022.
(2) Subsection (1) comes into force or is deemed to have come into force on January 1, 2024.
2018, c.12
(ii) designing, developing, manufacturing, selling and otherwise dealing with Insertion start information Insertion end technology, if those activities relate to
(c) respecting the circumstances in which a company may engage in Insertion start the activities Insertion end referred to in paragraphs (1)(b.1) and (c), including the circumstances in which it may collect, manipulate and transmit information under subparagraph (1)(c)(i).
b) Insertion start assortir de Insertion end conditions Insertion start l’acquisition par Insertion end la société, en vertu du paragraphe (2.1), Insertion start du Insertion end contrôle d’une entité ou Insertion start l’acquisition Insertion end ou Insertion start l’augmentation par cette société, en vertu de ce paragraphe, d’ Insertion end un intérêt de groupe financier dans une telle entité;
c) Insertion start prendre toute mesure d’ordre réglementaire concernant Insertion end les circonstances dans lesquelles la société peut, en vertu du paragraphe (2.1), acquérir le contrôle d’une entité ou acquérir ou augmenter un intérêt de groupe financier dans une telle entité.
a) Insertion start prendre toute mesure d’ordre réglementaire concernant Insertion end les circonstances dans lesquelles la société peut acquérir le contrôle d’une entité qui exerce des activités qu’une société est autorisée à exercer dans le cadre des alinéas 410(1)b.1) et c) ou acquérir ou augmenter un intérêt de groupe financier dans une telle entité, notamment dans quelles circonstances une telle acquisition ou augmentation est interdite;
b) Insertion start assortir de Insertion end conditions Insertion start l’acquisition par Insertion end la société Insertion start du Insertion end contrôle d’une entité visée à l’alinéa a) ou Insertion start l’acquisition Insertion end ou Insertion start l’augmentation par cette société, en vertu de cet alinéa, d’ Insertion end un intérêt de groupe financier dans une telle entité.
(ii) designing, developing, manufacturing, selling and otherwise dealing with Insertion start information Insertion end technology, if those activities relate to
c) Insertion start prendre toute mesure d’ordre réglementaire concernant Insertion end les circonstances dans lesquelles la banque peut exercer les activités visées aux alinéas (1)b.1) et c), notamment en ce qui a trait à la collecte, la manipulation et la transmission d’information en vertu du sous-alinéa (1)c)(i).
b) Insertion start assortir de Insertion end conditions Insertion start l’acquisition par Insertion end la banque, en vertu du paragraphe (2.1), Insertion start du Insertion end contrôle d’une entité ou Insertion start l’acquisition Insertion end ou Insertion start l’augmentation par cette banque, en vertu de ce paragraphe, d’ Insertion end un intérêt de groupe financier dans une telle entité;
c) Insertion start prendre toute mesure d’ordre réglementaire concernant Insertion end les circonstances dans lesquelles la banque peut, en vertu du paragraphe (2.1), acquérir le contrôle d’une entité ou acquérir ou augmenter un intérêt de groupe financier dans une telle entité.
a) Insertion start prendre toute mesure d’ordre réglementaire concernant Insertion end les circonstances dans lesquelles la banque peut acquérir le contrôle d’une entité qui exerce des activités qu’une banque est autorisée à Insertion start exercer Insertion end dans le cadre des alinéas 410(1)b.1) et c) ou acquérir ou augmenter un intérêt de groupe financier dans une telle entité, notamment dans quelles circonstances une telle acquisition ou augmentation est interdite;
b) Insertion start assortir de Insertion end conditions Insertion start l’acquisition par Insertion end la banque Insertion start du Insertion end contrôle d’une entité visée à l’alinéa a) ou Insertion start l’acquisition Insertion end ou Insertion start l’augmentation par cette banque, en vertu de cet alinéa, d’ Insertion end un intérêt de groupe financier dans une telle entité.
a) Insertion start assortir de Insertion end conditions Insertion start l’acquisition Insertion end ou Insertion start la détention par Insertion end la banque étrangère ou l’entité liée à une banque étrangère Insertion start du Insertion end contrôle d’une entité canadienne — ou Insertion start l’acquisition Insertion end ou Insertion start la détention d’ Insertion end un intérêt de groupe financier dans une telle entité — en vertu du paragraphe (1.1);
b) Insertion start prendre toute mesure d’ordre réglementaire concernant Insertion end les circonstances dans lesquelles la banque étrangère ou l’entité liée à une banque étrangère peut acquérir ou détenir le contrôle d’une entité canadienne — ou acquérir ou détenir un intérêt de groupe financier dans une telle entité — en vertu du paragraphe (1.1).
a) Insertion start prendre toute mesure d’ordre réglementaire concernant Insertion end les circonstances dans lesquelles la banque étrangère ou l’entité liée à une banque étrangère peut acquérir ou détenir le contrôle d’une entité canadienne qui exerce des activités qu’une banque est autorisée à Insertion start exercer Insertion end dans le cadre des alinéas 410(1)b.1) et c) ou acquérir ou détenir un intérêt de groupe financier dans une telle entité;
b) Insertion start assortir de Insertion end conditions Insertion start l’acquisition Insertion end ou Insertion start la détention par Insertion end la banque étrangère ou l’entité liée à une banque étrangère Insertion start du Insertion end contrôle d’une entité visée à l’alinéa a) ou Insertion start l’acquisition Insertion end ou Insertion start la détention d’ Insertion end un intérêt de groupe financier dans une telle entité.
(ii) designing, developing, manufacturing, selling and otherwise dealing with Insertion start information Insertion end technology, if those activities relate to
(c) respecting the circumstances in which an authorized foreign bank may engage in Insertion start the activities Insertion end referred to in paragraphs (1)(b.1) and (b.2), including the circumstances in which it may collect, manipulate and transmit information under subparagraph (1)(b.2)(i).
a) Insertion start assortir de Insertion end conditions Insertion start l’acquisition par Insertion end la société de portefeuille bancaire, en vertu du paragraphe (2.1), Insertion start du Insertion end contrôle d’une entité ou Insertion start l’acquisition Insertion end ou Insertion start l’augmentation par cette société, en vertu de ce paragraphe, d’ Insertion end un intérêt de groupe financier dans une telle entité;
b) Insertion start prendre toute mesure d’ordre réglementaire concernant Insertion end les circonstances dans lesquelles la société de portefeuille bancaire peut, en vertu du paragraphe (2.1), acquérir le contrôle d’une entité ou acquérir ou augmenter un intérêt de groupe financier dans une telle entité.
a) Insertion start prendre toute mesure d’ordre réglementaire concernant Insertion end les circonstances dans lesquelles la société de portefeuille bancaire peut acquérir le contrôle d’une entité qui exerce des activités qu’une banque est autorisée à exercer dans le cadre des alinéas 410(1)b.1) et c) ou acquérir ou augmenter un intérêt de groupe financier dans une telle entité, notamment dans quelles circonstances une telle acquisition ou augmentation est interdite;
b) Insertion start assortir de Insertion end conditions Insertion start l’acquisition par Insertion end la société de portefeuille bancaire Insertion start du Insertion end contrôle d’une entité visée à l’alinéa a) ou Insertion start l’acquisition Insertion end ou Insertion start l’augmentation par cette société d’ Insertion end un intérêt de groupe financier dans une telle entité.
(ii) designing, developing, manufacturing, selling and otherwise dealing with Insertion start information Insertion end technology, if those activities relate to
c) Insertion start prendre toute mesure d’ordre réglementaire concernant Insertion end les circonstances dans lesquelles la société peut exercer les activités visées aux alinéas (1)c.1) et d), notamment en ce qui a trait à la collecte, la manipulation et la transmission d’information en vertu du sous-alinéa (1)d)(i).
b) Insertion start assortir de Insertion end conditions Insertion start l’acquisition par Insertion end la société d’assurance-vie, en vertu du paragraphe (2.1), Insertion start du Insertion end contrôle d’une entité ou Insertion start l’acquisition Insertion end ou Insertion start l’augmentation par cette société, en vertu de ce paragraphe, d’ Insertion end un intérêt de groupe financier dans une telle entité;
c) Insertion start prendre toute mesure d’ordre réglementaire concernant Insertion end les circonstances dans lesquelles la société d’assurance-vie peut, en vertu du paragraphe (2.1), acquérir le contrôle d’une entité ou acquérir ou augmenter un intérêt de groupe financier dans une telle entité.
a) Insertion start assortir de Insertion end conditions Insertion start l’acquisition par Insertion end la société d’assurances multirisques ou la société d’assurance maritime, en vertu du paragraphe (4.1), d’une entité ou Insertion start l’acquisition Insertion end ou Insertion start l’augmentation par l’une de ces sociétés, en vertu de ce paragraphe, d’ Insertion end un intérêt de groupe financier dans une telle entité;
b) Insertion start prendre toute mesure d’ordre réglementaire concernant Insertion end les circonstances dans lesquelles la société d’assurances multirisques ou la société d’assurance maritime peut, en vertu du paragraphe (4.1), acquérir le contrôle d’une entité ou acquérir ou augmenter un intérêt de groupe financier dans une telle entité.
a) Insertion start prendre toute mesure d’ordre réglementaire concernant Insertion end les circonstances dans lesquelles la société peut acquérir le contrôle d’une entité qui exerce des activités qu’une société est autorisée à exercer dans le cadre des alinéas 441(1)c.1) et d) ou acquérir ou augmenter un intérêt de groupe financier dans une telle entité, notamment dans quelles circonstances une telle acquisition ou augmentation est interdite;
b) Insertion start assortir de Insertion end conditions Insertion start l’acquisition par Insertion end la société Insertion start du Insertion end contrôle d’une entité visée à l’alinéa a) ou Insertion start l’acquisition Insertion end ou Insertion start l’augmentation par cette société, en vertu de cet alinéa, d’ Insertion end un intérêt de groupe financier dans une telle entité.
b) Insertion start assortir de Insertion end conditions Insertion start l’acquisition par Insertion end la société de secours, en vertu du paragraphe (2.1), Insertion start du Insertion end contrôle d’une entité ou Insertion start l’acquisition Insertion end ou Insertion start l’augmentation par cette société, en vertu de ce paragraphe, d’ Insertion end un intérêt de groupe financier dans une telle entité;
c) Insertion start prendre toute mesure d’ordre réglementaire concernant Insertion end les circonstances dans lesquelles la société de secours peut, en vertu du paragraphe (2.1), acquérir le contrôle d’une entité ou acquérir ou augmenter un intérêt de groupe financier dans une telle entité.
a) Insertion start prendre toute mesure d’ordre réglementaire concernant Insertion end les circonstances dans lesquelles la société de secours peut acquérir le contrôle d’une entité qui exerce des activités qu’une société d’assurances multirisques est autorisée à Insertion start exercer Insertion end dans le cadre des alinéas 441(1)c.1) et d) ou acquérir ou augmenter un intérêt de groupe financier dans une telle entité, notamment dans quelles circonstances une telle acquisition ou augmentation est interdite;
b) Insertion start assortir de Insertion end conditions Insertion start l’acquisition par Insertion end la société de secours Insertion start du Insertion end contrôle d’une entité visée à l’alinéa a) ou Insertion start l’acquisition Insertion end ou Insertion start l’augmentation par cette société, en vertu de cet alinéa, d’ Insertion end un intérêt de groupe financier dans une telle entité.
b) Insertion start assortir de Insertion end conditions Insertion start l’acquisition par Insertion end la société de portefeuille d’assurances, en vertu du paragraphe (2.1), Insertion start du Insertion end contrôle d’une entité ou Insertion start l’acquisition Insertion end ou Insertion start l’augmentation par cette société, en vertu de ce paragraphe, d’ Insertion end un intérêt de groupe financier dans une telle entité;
c) Insertion start prendre toute mesure d’ordre réglementaire concernant Insertion end les circonstances dans lesquelles la société de portefeuille d’assurances peut, en vertu du paragraphe (2.1), acquérir le contrôle d’une entité ou acquérir ou augmenter un intérêt de groupe financier dans une telle entité.
a) Insertion start prendre toute mesure d’ordre réglementaire concernant Insertion end les circonstances dans lesquelles Insertion start la Insertion end société de portefeuille d’assurances peut acquérir le contrôle d’une entité qui exerce des activités qu’une société est autorisée à exercer dans le cadre des alinéas 441(1)c.1) et d) ou acquérir ou augmenter un intérêt de groupe financier dans une telle entité;
b) Insertion start assortir de Insertion end conditions Insertion start l’acquisition par Insertion end une société de portefeuille d’assurances Insertion start du Insertion end contrôle d’une entité visée à l’alinéa a) ou Insertion start l’acquisition Insertion end ou Insertion start l’augmentation par cette société d’ Insertion end un intérêt de groupe financier dans une telle entité.
1991, c. 45
1991, c. 46
1991, c. 47
196 This Subdivision comes into force on a day to be fixed by order of the Governor in Council.
R.S., c. L-2
common-law partner, in relation to an individual, means a person who is cohabiting with the individual in a conjugal relationship, having so cohabited for a period of at least one year. (conjoint de fait)
stillbirth means the complete expulsion or extraction of a foetus from a person on or after the 20th week of pregnancy or after the foetus has attained at least 500 g, without any breathing, beating of the heart, pulsation of the umbilical cord or movement of voluntary muscle from the foetus after the expulsion or extraction. (mortinaissance)
End of inserted block(a) their pregnancy does not result in a live birth;
(b) the pregnancy of their spouse or common-law partner does not result in a live birth; or
(c) they intended to be the legal parent of the child that would have been born had another person’s pregnancy resulted in a live birth.
End of inserted block(a) eight weeks, if the pregnancy resulted in a stillbirth; or
(b) three days, in any other case.
End of inserted block(a) an employee may take only one leave of absence under subsection (3) in respect of the pregnancy; and
(b) a pregnancy that does not result in a live birth includes a pregnancy that has ended without a live birth in respect of at least one foetus.
End of inserted block(a) specifying the absences from employment that are deemed not to have interrupted continuous employment referred to in any of sections Insertion start 206.51 Insertion end to 206.8;
(g) prescribing shorter periods of consecutive months of continuous employment for the purposes of subsections Insertion start 206.51(6) Insertion end , 206.6(2), 206.7(2.1) and 206.8(1);
(a) dismiss, suspend, lay off, demote or discipline an employee because the employee applies for, intends to take or has taken a leave of absence from employment under this Division; or
(b) take into account the fact that an employee applies for, intends to take or has taken a leave of absence from employment under this Division in any decision to promote or train that employee.
End of inserted block(a) defining the expression “immediate family” for the purposes of subsection 210(1);
(b) for the purposes of subsection 210(2),
(i) defining the expressions “regular rate of wages” and “normal hours of work”, and
(ii) prescribing shorter periods of consecutive months of continuous employment;
(c) specifying what does not constitute a valid reason for not reinstating an employee in the position referred to in subsection 210.2(2);
(d) for the purposes of this Division, specifying the absences from employment that are deemed not to have interrupted continuity of employment;
(e) specifying the circumstances in which a leave under this Division may be interrupted; and
(f) extending the period within which a leave under this Division may be taken.
End of inserted block(a.1) the employer has taken action against the employee in contravention of paragraph 210.5(a) or (b);
End of inserted block2021, c. 27
(a) a person who is under 18 years of age; or
(b) a person in respect of whom the employee or their spouse or common-law partner, as the case may be, is entitled to the Canada caregiver credit under paragraph 118(1)(d) of the Income Tax Act.
206 Subsection 210(1.3) of the Canada Labour Code, as enacted by subsection 201(1), applies only with respect to leaves under section 210 of that Act that begin on or after the day on which that subsection 201(1) comes into force.
(a) sections 204 and 205 of this Act are deemed never to have come into force and are repealed;
(b) subsection 210(1) of the Canada Labour Code is replaced by the following:
210 (1) Except when subsection (1.01) applies, every employee is entitled to and shall be granted, in the event of the death of a member of their immediate family or a family member in respect of whom the employee is, at the time of the death, on leave under section 206.3 or 206.4, a leave of absence from employment of up to 10 days that may be taken during the period that begins on the day on which the death occurs and ends six weeks after the latest of the days on which any funeral, burial or memorial service of that deceased person occurs.
(c) subsections 210(1.02) and (1.03) of the Canada Labour Code are replaced by the following:
(1.02) In subsection (1.01), child means
(a) a person who is under 18 years of age; or
(b) a person in respect of whom the employee or their spouse or common-law partner, as the case may be, is entitled to the Canada caregiver credit under paragraph 118(1)(d) of the Income Tax Act.
208 Sections 197 to 203 come into force on the 540th day after the day on which this Act receives royal assent or on an earlier day to be fixed by order of the Governor in Council.
Whereas the Government of Canada recognizes the importance of taking action to respond to the growing challenges threatening the health and sustainable management of freshwater ecosystems;
Whereas the Government of Canada wishes to foster collaboration with respect to freshwater issues;
Whereas the Government of Canada wishes to contribute to the protection, conservation and restoration of the quality of fresh water and the health of freshwater ecosystems in Canada and to take other collaborative measures, including the development of policy and the promotion of sound governance with respect to fresh water, as well as the improvement of the ease of access to and use of relevant data;
Whereas the Government of Canada recognizes the importance of relying on scientific knowledge related to fresh water and of relying, through cooperation with the Indigenous peoples of Canada, on Indigenous knowledge related to fresh water;
Whereas the Government of Canada wishes to coordinate federal policies and programs with respect to freshwater issues;
Whereas the Government of Canada is committed, in the course of exercising and performing its powers, duties and functions with respect to fresh water, to fostering reconciliation with the Indigenous peoples of Canada and to ensuring respect for their rights recognized and affirmed under section 35 of the Constitution Act, 1982;
Whereas the Government of Canada is committed to implementing the United Nations Declaration on the Rights of Indigenous Peoples;
Whereas the Government of Canada is committed to promoting cooperation with respect to freshwater issues with provincial and territorial governments and the Indigenous peoples of Canada;
Whereas the Government of Canada wishes to promote cooperation with respect to freshwater issues with foreign governments, international organizations and interested persons and organizations;
And whereas the Government of Canada considers that the creation of the Canada Water Agency will contribute to the coordination of federal efforts to promote sustainable freshwater management;
Now, therefore, His Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
Agency means the Canada Water Agency established by section 3. (Agence)
Minister means the Minister of the Environment. (ministre)
President means the President of the Agency appointed under section 7. (président)
former agency means the portion of the federal public administration, within the Department of the Environment, known as the Canada Water Agency. (ancienne agence)
new agency means the Canada Water Agency established by section 3. (nouvelle agence)
R.S., c. A-1
Canada Water Agency
Agence canadienne de l’eau
R.S., c. F-11
Canada Water Agency
Agence canadienne de l’eau
and a corresponding reference in column II to “Minister of the Environment.”
Canada Water Agency
Agence canadienne de l’eau
Canada Water Agency
Agence canadienne de l’eau
and a corresponding reference in column II to “President.”
R.S., c. P-21
Canada Water Agency
Agence canadienne de l’eau
R.S., c. P-36
Canada Water Agency
Agence canadienne de l’eau
216 The provisions of the Canada Water Agency Act, as enacted by section 209, and sections 210 to 215, come into force on a day or days to be fixed by order of the Governor in Council.
1997, c. 13; 2018, c. 9, s. 2
(a) fixing the fees or charges or providing for the manner of calculating them;
(b) requiring manufacturers to submit to the Minister information for the calculation of the fees or charges and prescribing the information that manufacturers must submit as well as the form and manner in which and the time within which the information must be submitted;
(c) respecting the payment of the fees or charges, including the time and manner of payment;
(d) respecting, for the purposes of section 42.13, the information that the Minister must make available to the public, including
(i) the name of each manufacturer who is required to pay the fees or charges,
(ii) information relating to whether each manufacturer has paid the fees or charges,
(iii) information relating to whether each manufacturer has submitted the information required under this Part, and
(iv) information relating to the measures taken in respect of each manufacturer who has failed to pay the fees or charges or submit the information required under this Part; and
(e) prescribing anything that by this Part is to be prescribed.
End of inserted blockR.S., c. C-21; S.C. 2001, c. 9, s. 218
(b) whose directors are wholly or primarily Insertion start individuals Insertion end elected or appointed by local cooperative credit societies; (société coopérative de crédit centrale ou centrale)
entity includes a corporation, trust, partnership, fund, agency and unincorporated association or organization; (entité)
person includes an entity; (personne)
End of inserted block(a) a central, a trust company, a loan company, a local and any other person that accepts deposits transferable by order;
(b) a clearing house, as defined in section 2 of the Payment Clearing and Settlement Act, of a clearing and settlement system designated under subsection 4(1) of that Act;
End of inserted block(i) a payment service provider, as defined in section 2 of the Retail Payment Activities Act, that performs retail payment activities, as defined in that section.
End of inserted block(ii) the remuneration of directors referred to in paragraph 8(1)(d) and of Insertion start individuals Insertion end referred to in subsection 21.2(7),
(iii) the procedures for the nomination, selection and appointment of Insertion start individuals Insertion end to be members of the Stakeholder Advisory Council or the Member Advisory Council.
(b) any Insertion start individual Insertion end who represents the interests of such a member or who is represented by such a member.
(b) respecting the election of directors of the Association, including the eligibility of Insertion start individuals Insertion end to be elected as directors, and defining independent for the purposes of paragraph 8(1)(d);
(a) the conditions Insertion start an entity Insertion end must meet to become a participant in the designated payment system;
230 Sections 219 to 228 come into force on a day or days to be fixed by order of the Governor in Council.
R.S., c. C-34; R.S., c. 29 (2nd Supp.), s. 19
(a) if one or more corporations are charged and no individual is charged in the same indictment, the corporation or corporations are to be tried without a jury;
(b) if one or more corporations and a single individual are charged in the same indictment, then, unless the court is satisfied that the ends of justice require otherwise, the corporation or corporations are to be tried
(i) without a jury if the individual elects or re-elects to be tried without a jury, or
(ii) with a jury if the individual elects or re-elects to be tried with a jury; and
(c) if one or more corporations and two or more individuals are charged in the same indictment, then, unless the court is satisfied that the ends of justice require otherwise, the corporation or corporations are to be tried
(i) without a jury if all the individuals elect or re-elect to be tried without a jury,
(ii) with a jury if all the individuals elect or re-elect to be tried with a jury, or
(iii) either with or without a jury, as determined by the Attorney General of Canada for each corporation, if some but not all of the individuals elect or re-elect to be tried without a jury.
End of inserted block(b.1) makes a representation to the public in the form of a statement, warranty or guarantee of a product’s benefits for protecting the environment or mitigating the environmental and ecological effects of climate change that is not based on an adequate and proper test, the proof of which lies on the person making the representation; or
End of inserted blockInsertion start (a) Insertion end Insertion start Insertion end Insertion start in respect of an application by the Commissioner Insertion end , the Tribunal, the Federal Court or the superior court of a province; Insertion start and Insertion end
(b) in respect of an application made by a person granted leave under section 103.1, the Tribunal.
End of inserted block(c) in the case of an order in respect of conduct reviewable under paragraph 74.01(1)(a) Insertion start or section 74.011 Insertion end , the person was previously convicted of an offence under section 52, or under paragraph 52(1)(a) as it read immediately before the coming into force of this Part; or
(a) serious harm is likely to ensue unless the order is issued; and
(b) the balance of convenience favours issuing the order.
(a) serious harm is likely to ensue unless the order is issued; and
(b) the balance of convenience favours issuing the order.
(a) prohibit the person from doing anything that, in the court’s opinion, may constitute a failure to comply with the agreement;
(b) order the person to take any action that is necessary to comply with the agreement;
(c) order the person to pay, in any manner that the court specifies, an administrative monetary penalty in an amount not exceeding $10,000 for each day on which they fail to comply with the agreement, determined by the court after taking into account any evidence of the following:
(i) the person’s financial position,
(ii) the person’s history of compliance with this Act,
(iii) the duration of the period of non-compliance, and
(iv) any other relevant factor; or
(d) grant any other relief that the court considers appropriate.
End of inserted block(a) prohibit the person from doing anything that, in the Tribunal’s opinion, may constitute a failure to comply with the agreement;
(b) order the person to take any action that is necessary to comply with the agreement;
(c) order the person to pay, in any manner that the Tribunal specifies, an administrative monetary penalty in an amount not exceeding $10,000 for each day on which they fail to comply with the agreement, determined by the Tribunal after taking into account any evidence of the following:
(i) the person’s financial position,
(ii) the person’s history of compliance with this Act,
(iii) the duration of the period of non-compliance, and
(iv) any other relevant factor; or
(d) grant any other relief that the Tribunal considers appropriate.
End of inserted block(a) order the person to serve the Commissioner with a copy of the agreement;
(b) issue an interim order prohibiting any person from doing anything that, in the Tribunal’s opinion, may constitute or be directed toward the implementation of the agreement;
(c) order the person to pay, in any manner that the Tribunal specifies, an administrative monetary penalty in an amount not exceeding $10,000 for each day on which they fail to serve a copy of the agreement on the Commissioner, determined by the Tribunal after taking into account any evidence of the following:
(i) the person’s financial position,
(ii) the person’s history of compliance with this Act,
(iii) the duration of the period of non-compliance, and
(iv) any other relevant factor; or
(d) grant any other relief that the Tribunal considers appropriate.
End of inserted block(a) Insertion start the Insertion end person is substantially affected in Insertion start the whole or part of their Insertion end business or is precluded from carrying on business due to Insertion start their Insertion end inability to obtain adequate supplies of Insertion start the Insertion end product anywhere in Insertion start the Insertion end market on usual trade terms;
(b) the person is unable to obtain adequate supplies of the product because of insufficient competition among suppliers of the product in the market;
(c) the person is willing and able to meet the usual trade terms of the supplier or suppliers of the product;
(d) the product is in ample supply Insertion start or, in the case of a means of diagnosis or repair, can be readily supplied Insertion end ; and
(e) the refusal to deal is having or is likely to have an adverse effect on competition in a market.
(a) specifying how the payment is to be administered;
(b) respecting the appointment of an administrator to administer the payment and specifying the terms of administration;
(c) requiring the person against whom the order is made to pay the administrative costs related to the payment as well as the fees to be paid to an administrator;
(d) requiring that potential claimants be notified in the time and manner specified by the Tribunal;
(e) specifying the time and manner for making claims;
(f) specifying the conditions for the eligibility of claimants, including conditions relating to the return of the products to the person against whom the order is made; and
(g) providing for the manner in which, and the terms on which, any amount of the payment that remains unclaimed or undistributed is to be dealt with.
End of inserted blockmeans of diagnosis or repair includes diagnostic and repair information, technical updates, diagnostic software or tools and any related documentation and service parts. (moyen de diagnostic ou de réparation)
End of inserted blocktrade terms means terms in respect of payment, units of purchase and reasonable technical and servicing requirements. Insertion start (conditions de commerce) Insertion end
(b) an order against that person Insertion start has been made Insertion end under section 79 or 90.1.
(d.1) the amount that the person against whom the order is made is required to pay under an order made under subsection (4.1);
End of inserted block(b) an order against that person Insertion start has been made Insertion end under section 76, 90.1 or 92.
(a) $10,000,000 and, for each subsequent order under either of those subsections, an amount not exceeding $15,000,000, and
(b) three times the value of the benefit derived from the agreement or arrangement, or, if that amount cannot be reasonably determined, 3% of the person’s annual worldwide gross revenues.
End of inserted block(a) the effect on competition in the relevant market;
(b) the gross revenue from sales affected by the agreement or arrangement;
(c) any actual or anticipated profits affected by the agreement or arrangement;
(d) the financial position of the person against whom the order is made;
(e) the history of compliance with this Act by the person against whom the order is made; and
(f) any other relevant factor.
End of inserted block(d.1) any amount that the person against whom the order is made is required to pay under an order made under subsection (10.1);
End of inserted block(b) an order against that person Insertion start has been made Insertion end under section 76, 79 or 92.
(b) among the sources from which a trade, industry or profession obtains a product, Insertion start including labour Insertion end ,
(c) among the outlets through which a trade, industry or profession disposes of a product, Insertion start including labour Insertion end , or
(g.1) network effects within Insertion start a Insertion end market;
(g.4) any effect from the change in concentration or market share that the merger or proposed merger has brought about or is likely to bring about;
(g.5) any likelihood that the merger or proposed merger will or would result in express or tacit coordination between competitors in a market; and
End of inserted blockInsertion start (a) Insertion end in respect of a merger Insertion start that was the subject of a request for a certificate under section 102 or a notification under section 114 Insertion end , more than one year after the merger has been substantially completed; Insertion start or Insertion end
(b) in respect of any other merger, more than three years after the merger has been substantially completed.
End of inserted block(b) an order against that person Insertion start has been made Insertion end under section 79 or 90.1.
(b) was the subject of an inquiry that has been discontinued because of a settlement between the Commissioner and the person against whom the order is sought under section Insertion start 74.1 Insertion end , 75, 76, 77, 79 or Insertion start 90.1 Insertion end , as the case may be.
(a) prohibit the person from doing anything that, in the Tribunal’s opinion, may constitute a failure to comply with the agreement;
(b) order the person to take any action that is necessary to comply with the agreement;
(c) order the person to pay, in any manner that the Tribunal specifies, an administrative monetary penalty in an amount not exceeding $10,000 for each day on which they fail to comply with the agreement, determined by the Tribunal after taking into account any evidence of the following:
(i) the person’s financial position,
(ii) the person’s history of compliance with this Act,
(iii) the duration of the period of non-compliance, and
(iv) any other relevant factor; or
(d) grant any other relief that the Tribunal considers appropriate.
End of inserted block(a) order the person to serve the Commissioner with a copy of the agreement;
(b) issue an interim order prohibiting any person from doing anything that, in the Tribunal’s opinion, may constitute or be directed toward the implementation of the agreement;
(c) order the person to pay, in any manner that the Tribunal specifies, an administrative monetary penalty in an amount not exceeding $10,000 for each day on which they fail to serve a copy of the agreement on the Commissioner, determined by the Tribunal after taking into account any evidence of the following:
(i) the person’s financial position,
(ii) the person’s history of compliance with this Act,
(iii) the duration of the period of non-compliance, and
(iv) any other relevant factor; or
(d) grant any other relief that the Tribunal considers appropriate.
End of inserted blockcourt means the Federal Court or the superior court of a province. (tribunal)
reprisal action means an action taken by a person to penalize, punish, discipline, harass or disadvantage another person because of that person’s communications with the Commissioner or because that person has cooperated, testified or assisted, or has expressed an intention to cooperate, testify or assist in an investigation or proceeding under this Act. (représailles)
End of inserted block Start of inserted block(a) in the case of an individual, $750,000 and for each subsequent order, $1,000,000; or
(b) in the case of a corporation, $10,000,000 and for each subsequent order, $15,000,000.
End of inserted block(a) the frequency and duration of the conduct;
(b) the vulnerability of the class of persons likely to be adversely affected by the conduct;
(c) the financial position of the person against whom the order is made;
(d) the history of compliance with this Act by the person against whom the order is made; and
(e) any other relevant factor.
End of inserted block(ii) the gross revenues from sales in, from or Insertion start into Insertion end Canada, determined for the annual period and in the manner that is prescribed, generated from Insertion start all the Insertion end assets Insertion start that are owned by the corporation or by entities controlled by that corporation Insertion end would exceed the amount determined under subsection (7) or (8), as the case may be; and
(a) the value of the assets calculated under subsection (2) and the value of the assets calculated under subparagraph (3)(a)(i) are to be aggregated for the purpose of determining if those assets exceed in aggregate value the amount determined under subsection (8); and
(b) the gross revenues calculated under subsection (2) and the gross revenues calculated under subparagraph (3)(a)(ii) are to be aggregated for the purpose of determining if those gross revenues exceed in aggregate value the amount determined under subsection (8).
End of inserted block(b) the gross revenues from sales in, from or Insertion start into Insertion end Canada, determined for the annual period and in the manner that is prescribed, generated from Insertion start all the Insertion end assets Insertion start that would be owned by the continuing entity that would result from the amalgamation or by entities controlled by the continuing entity Insertion end would exceed the amount determined under subsection (7) or (8), as the case may be.
(b) the gross revenues from sales in, from or Insertion start into Insertion end Canada, determined for the annual period and in the manner that is prescribed, generated from Insertion start all Insertion end the assets Insertion start that are the subject matter of the combination Insertion end would exceed the amount determined under subsection (7) or (8), as the case may be.
(ii) the gross revenues from sales in, from or Insertion start into Insertion end Canada, determined for the annual period and in the manner that is prescribed, generated from Insertion start all Insertion end the assets Insertion start that are the subject matter of the combination Insertion end would exceed the amount determined under subsection (7) or (8), as the case may be; and
(c) a transaction in respect of which the Commissioner or a person authorized by the Commissioner has waived, Insertion start during the year preceding the day on which the transaction was completed Insertion end , the obligation under this Part to notify the Commissioner and supply information because substantially similar information was previously supplied in relation to a request for a certificate under section 102; and
(a) the parties have terminated the agreement or arrangement without giving notice of the termination in accordance with subsection 124.6(1);
(b) the parties have agreed, with the Commissioner’s consent, to vary the agreement or arrangement;
(c) the agreement or arrangement is not being implemented in accordance with the description of it in the certificate;
(d) the parties have failed to comply with the terms specified in the certificate; or
(e) the agreement or arrangement prevents or lessens, or is likely to prevent or lessen, competition substantially in a market.
End of inserted blockR.S., c. 19 (2nd Supp.)
(a) that an award is necessary to maintain confidence in the administration of justice; or
(b) that the absence of an award would have a substantial adverse effect on the other party’s ability to carry on business.
End of inserted block267 Subsection 67(4) of the Competition Act, as enacted by section 235, applies only in respect of corporations that are charged with an offence under that Act on or after the day on which this Act receives royal assent.
268 Subsection 92(2) of the Competition Act, as that subsection read before the day on which subsection 249(2) comes into force, continues to apply after that day in respect of a proposed transaction that was the subject of a notification provided under section 114 of that Act before that day or to a merger that is substantially completed before that day.
269 Subsection 8.1(3) of the Competition Tribunal Act, as that subsection read before the day on which section 266 comes into force, continues to apply after that day in respect of any proceeding referred to in subsection 8.1(1) of that Act that commenced before that day.
2010, c. 23
(d) the person’s history with respect to any previous undertaking entered into under subsection 21(1) and any previous consent agreement signed under subsection 74.12(1) Insertion start or 74.131(1) Insertion end of the Competition Act that relates to acts or omissions that constitute conduct that is reviewable under section 74.011 of that Act;
(a) subsection 90.1(1.1) of the Competition Act, as enacted by subsection 8(1) of the other Act, is renumbered as subsection 90.1(1.01) and is repositioned accordingly if required; and
(b) subsection 90.1(11) of the Competition Act is replaced by the following:
(11) In subsections (1) and (1.01), competitor includes a person who it is reasonable to believe would be likely to compete with respect to a product in the absence of the agreement or arrangement.
272 Section 238, subsections 239(1) and (4), sections 240, 241 and 243, subsections 244(2) and 245(2), section 246, subsections 247(1) and (2) and 248(2), (4) and (7), sections 254 and 255, subsection 256(1) and sections 257, 259, 264 and 270 come into force on the first anniversary of the day on which this Act receives royal assent.
R.S., c. B-3; 1992, c. 27, s. 2
corporation means a company or legal person that is incorporated by or under an Act of Parliament or of the legislature of a province, an incorporated company, wherever incorporated, that is authorized to carry on business in Canada or has an office or property in Canada or an income trust, but does not include banks, authorized foreign banks within the meaning of section 2 of the Bank Act, insurance companies, trust companies, loan companies or Insertion start prescribed public post-secondary educational institutions Insertion end ; (personne morale)
R.S., c. C-36
company means any company, corporation or legal person incorporated by or under an Act of Parliament or of the legislature of a province, any incorporated company having assets or doing business in Canada, wherever incorporated, and any income trust, but does not include banks, authorized foreign banks within the meaning of section 2 of the Bank Act, telegraph companies, insurance companies, companies to which the Trust and Loan Companies Act applies and Insertion start prescribed public post-secondary educational institutions Insertion end ; (compagnie)
275 The definition corporation in section 2 of the Bankruptcy and Insolvency Act, as enacted by section 273, applies only in respect of proceedings that are commenced under that Act on or after the day on which that section 273 comes into force.
276 The definition company in subsection 2(1) of the Companies’ Creditors Arrangement Act, as enacted by section 274, applies only in respect of proceedings that are commenced under that Act on or after the day on which that section 274 comes into force.
277 Sections 273 and 274 come into force on the second anniversary of the day on which this Act receives royal assent or on an earlier day to be fixed by order of the Governor in Council.
2000, c. 17; 2001, c. 41, s. 48
Minister means, in relation to sections 24.1 to 39 Insertion start and 39.13 to 39.39 Insertion end , the Minister of Public Safety and Emergency Preparedness and, in relation to any other provision of this Act, the Minister of Finance. (ministre)
sanctions evasion offence means an offence arising from the contravention of a restriction or prohibition established by an order or a regulation made under the United Nations Act, the Special Economic Measures Act or the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law). (infraction de contournement de sanctions)
End of inserted blockacquirer means an entity that connects a private automated banking machine to a payment card network, as defined in section 3 of the Payment Card Networks Act, to facilitate transactions. (acquéreur)
private automated banking machine means any automated banking machine that is not owned or operated by a bank as defined in section 2 of the Bank Act, by an association regulated by the Cooperative Credit Associations Act or by a cooperative credit society, a savings and credit union or a caisse populaire regulated by a provincial Act. (guichet automatique privé)
End of inserted block(iv.1) in relation to a private automated banking machine, acquirer services, or
End of inserted block(iv.1) in relation to a private automated banking machine, acquirer services, or
End of inserted block(c) the transaction is related to the commission or the attempted commission of a sanctions evasion offence.
End of inserted block(a) include with the transfer any prescribed information and, Insertion start as the case may be Insertion end ,
Insertion start (i) Insertion end the name, address and account number of the Insertion start holder of the account from which the funds for the transfer are withdrawn, or Insertion end
Insertion start (ii) Insertion end Insertion start Insertion end Insertion start the name, address Insertion end and reference number of the person or entity that requested Insertion start the transfer Insertion end ;
(d) there is a risk that a foreign state, a foreign entity or a person or entity referred to in section 5 may be facilitating sanctions evasion and, as a result, the Minister is of the opinion that there could be an adverse impact on the integrity of the Canadian financial system or a reputational risk to that system.
End of inserted block(c) if the risk of sanctions evasion being facilitated by or in that foreign state or by means of that foreign entity or entity referred to in paragraph 5(e.1) is significant and, as a result, the Minister is of the opinion that there could be an adverse impact on the integrity of the Canadian financial system or a reputational risk to that system.
End of inserted blockgoods has the same meaning as in subsection 2(1) of the Customs Act. (marchandises)
officer has the same meaning as in subsection 2(1) of the Customs Act. (agent)
End of inserted block Start of inserted block(a) whether the goods are proceeds of crime as defined in subsection 462.3(1) of the Criminal Code or are goods relating to money laundering, to the financing of terrorist activities or to sanctions evasion; and
(b) that the goods are actually being imported or exported, as the case may be.
End of inserted block(a) in the case of goods in the actual possession of a person arriving in or departing from Canada, or that form part of their baggage if they and their baggage are being carried on board the same conveyance, by that person or, in prescribed circumstances, by the person in charge of the conveyance;
(b) in the case of goods imported into Canada by courier or as mail, by the exporter of the goods or, on receiving notice under subsection 39.03(2), by the importer;
(c) in the case of goods exported from Canada by courier or as mail, by the exporter of the goods;
(d) in the case of goods, other than those referred to in paragraph (a) or imported or exported as mail, that are on board a conveyance arriving in or departing from Canada, by the person in charge of the conveyance; and
(e) in any other case, by the person or entity on whose behalf the goods are imported or exported.
End of inserted block(a) the period for which the goods may be retained;
(b) that if, within that period, the goods are declared under section 39.02, they may no longer be retained; and
(c) that goods retained at the end of that period are forfeited to His Majesty in right of Canada at that time.
End of inserted block(a) any person who has arrived in Canada, within a reasonable time after their arrival in Canada;
(b) any person who is about to leave Canada, at any time before their departure; or
(c) any person who has had access to an area designated for use by persons about to leave Canada and who leaves the area but does not leave Canada, within a reasonable time after they leave the area.
End of inserted block(a) if the goods were not imported or exported as mail, give the person from whom they were seized written notice of the seizure and the right to review and appeal set out in sections 39.14 and 39.21;
(b) if the goods were imported or exported as mail and the address of the exporter is known, give the exporter written notice of the seizure and the right to review and appeal set out in sections 39.14 and 39.21; and
(c) take the measures that are reasonable in the circumstances to give notice of the seizure to any person or entity that the officer believes on reasonable grounds is entitled to make an application under section 39.23 in respect of the goods.
End of inserted block(a) it is made within one year after the end of the period provided in section 39.14; and
(b) the applicant demonstrates that
(i) within the period provided in section 39.14, they were unable to act or to instruct another person to act in their name or had a bona fide intention to request a decision,
(ii) it would be just and equitable to grant the application, and
(iii) the application was made as soon as circumstances permitted.
End of inserted block(a) within the period of 90 days after the Minister dismisses that application, if it is dismissed; or
(b) after 90 days have expired after that application was made, if the Minister has not notified the person, entity or lawful owner of a decision made in respect of it.
End of inserted block(a) the application under section 39.15 was made within one year after the end of the period provided in section 39.14; and
(b) the applicant demonstrates that
(i) within the period provided in section 39.14, they were unable to act or to instruct another person to act in their name or had a bona fide intention to request a decision,
(ii) it would be just and equitable to grant the application, and
(iii) the application was made as soon as circumstances permitted.
End of inserted block(a) in the Province of Ontario, the Superior Court of Justice;
(b) in the Province of Quebec, the Superior Court;
(c) in the Provinces of Nova Scotia, British Columbia, Prince Edward Island and Newfoundland and Labrador, in Yukon and in the Northwest Territories, the Supreme Court;
(d) in the Provinces of New Brunswick, Manitoba, Saskatchewan and Alberta, the Court of King’s Bench; and
(e) in Nunavut, the Nunavut Court of Justice.
End of inserted block(a) that the applicant acquired the interest or right in good faith before the contravention;
(b) that the applicant is innocent of any complicity in the contravention and of any collusion in relation to it; and
(c) that the applicant exercised all reasonable care to ensure that any person permitted to obtain possession of the goods seized would declare them in accordance with section 39.02.
End of inserted block(a) the goods; or
(b) an amount calculated on the basis of the interest of the applicant in the goods at the time of the contravention in respect of which they were seized, as declared in the order.
End of inserted block(a) information set out in a declaration made under section 39.02, whether or not it is completed;
(b) any other information obtained for the purposes of this Part; or
(c) information prepared from information referred to in paragraph (a) or (b).
End of inserted block(a) the appropriate police force;
(b) the Canada Revenue Agency, if the officer also has reasonable grounds to suspect that the information would be relevant to investigating or prosecuting an offence of obtaining or attempting to obtain a rebate, refund or credit to which a person or entity is not entitled, or of evading or attempting to evade paying taxes or duties imposed under an Act of Parliament administered by the Minister of National Revenue;
(c) the Agence du revenu du Québec, if the officer also has reasonable grounds to suspect that the information would be relevant to investigating or prosecuting an offence of obtaining or attempting to obtain a rebate, refund or credit to which a person or entity is not entitled, or of evading or attempting to evade paying taxes imposed under an Act of Parliament or of the legislature of Quebec administered by the Minister of Revenue of Quebec;
(d) the Canada Revenue Agency, if the officer also has reasonable grounds to suspect that the information is relevant to determining
(i) whether a registered charity, as defined in subsection 248(1) of the Income Tax Act, has ceased to comply with the requirements of that Act for its registration as such,
(ii) whether a person or entity that the officer has reasonable grounds to suspect has applied to be a registered charity, as defined in subsection 248(1) of the Income Tax Act, is eligible to be registered as such, or
(iii) whether a person or entity that the officer has reasonable grounds to suspect may apply to be a registered charity, as defined in subsection 248(1) of the Income Tax Act,
(A) has made or will make available any resources, directly or indirectly, to a listed entity as defined in subsection 83.01(1) of the Criminal Code,
(B) has made available any resources, directly or indirectly, to an entity as defined in subsection 83.01(1) of the Criminal Code that was at that time, and continues to be, engaged in terrorist activities as defined in that subsection or activities in support of them, or
(C) has made or will make available any resources, directly or indirectly, to an entity as defined in subsection 83.01(1) of the Criminal Code that engages or will engage in terrorist activities as defined in that subsection or activities in support of them;
(e) the Communications Security Establishment, if the officer also determines that the information is relevant to the foreign intelligence aspect of the Communications Security Establishment’s mandate, referred to in section 16 of the Communications Security Establishment Act;
(f) the Competition Bureau, if the officer also has reasonable grounds to suspect that the information would be relevant to investigating or prosecuting an offence under the Competition Act, the Consumer Packaging and Labelling Act, the Precious Metals Marking Act or the Textile Labelling Act or an attempt to commit such an offence;
(g) an agency or body that administers the securities legislation of a province, if the officer also has reasonable grounds to suspect that the information would be relevant to investigating or prosecuting an offence under that legislation;
(h) the Minister of Foreign Affairs or a Minister designated under subsection 6(2) of the Special Economic Measures Act, if the officer also determines that the information is relevant to the making, administration or enforcement of an order or regulation referred to in subsection 4(1) of that Act;
(i) the Minister of Foreign Affairs or a Minister designated under subsection 2.1(2) of the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law), if the officer also determines that the information is relevant to the making, administration or enforcement of an order or regulation referred to in subsection 4(1) of that Act;
(j) the Department of the Environment, if the officer also has reasonable grounds to suspect that the information would be relevant to investigating or prosecuting an offence under an Act administered by the Minister of the Environment or an attempt to commit such an offence; and
(k) the Department of Fisheries and Oceans, if the officer also has reasonable grounds to suspect that the information would be relevant to investigating or prosecuting an offence under an Act administered by the Minister of Fisheries and Oceans or an attempt to commit such an offence.
End of inserted block(a) the Canadian Security Intelligence Service;
(b) the appropriate police force, if the officer also has reasonable grounds to suspect that the information is relevant to investigating or prosecuting an offence under Canadian law that the officer has reasonable grounds to suspect arises out of conduct constituting such a threat;
(c) the Department of National Defence and the Canadian Forces, if the officer also has reasonable grounds to suspect that the information is relevant to the conduct of the Department’s or the Canadian Forces’ investigative activities related to such a threat; and
(d) the Office of the Superintendent of Financial Institutions, if the officer also has reasonable grounds to suspect that the information is relevant to the exercise of the powers or the performance of the duties and functions of the Superintendent under the Office of the Superintendent of Financial Institutions Act.
End of inserted block(a) criminal proceedings under an Act of Parliament that have been commenced by the laying of an information or the preferring of an indictment; or
(b) any legal proceedings that relate to the administration or enforcement of this Part.
End of inserted block(a) inform persons and entities that have provided a declaration under section 39.02 about measures that have been taken with respect to those declarations;
(b) conduct research into trends and developments in the area of money laundering, the financing of terrorist activities, sanctions evasion and the financing of threats to the security of Canada relating to the importation and exportation of goods and into improved ways of detecting, preventing and deterring money laundering, the financing of terrorist activities, sanctions evasion and the financing of threats to the security of Canada; and
(c) undertake measures to inform the public, any persons and entities referred to in section 39.02, any authorities engaged in the investigation and prosecution of money laundering offences, terrorist activity financing offences and sanctions evasion offences and any others with respect to
(i) their obligations under this Part,
(ii) the nature and extent of money laundering inside and outside Canada relating to the importation and exportation of goods,
(iii) the nature and extent of the financing of terrorist activities inside and outside Canada relating to the importation and exportation of goods,
(iv) the nature and extent of the financing, inside and outside Canada, of threats to the security of Canada relating to the importation and exportation of goods,
(v) the nature and extent of sanctions evasion inside and outside Canada relating to the importation and exportation of goods, and
(vi) measures that have been or might be taken to detect, prevent and deter money laundering — as well as the financing of terrorist activities, sanctions evasion and the financing of threats to the security of Canada — inside or outside Canada, and the effectiveness of those measures.
End of inserted block(a) a person who provided a report or information to the Canada Border Services Agency;
(b) a Canadian citizen or a permanent resident as defined in subsection 2(1) of the Immigration and Refugee Protection Act about whom a report or information was provided;
(c) a person in Canada or an entity that has a place of business in Canada about whom a report or information was provided.
End of inserted block(a) information set out in a declaration made under section 39.02, and any other related information, in respect of goods imported into Canada from that state will be provided to a department, institution or agency of that state that has powers and duties similar to those of the Canada Border Services Agency in respect of the reporting of goods; and
(b) information contained in reports, and any other related information, in respect of goods imported into that state from Canada will be provided to the Canada Border Services Agency.
End of inserted block(a) the electronic version is provided by the electronic means, including an electronic system, that are made available or specified by the Minister, if any; and
(b) any prescribed requirements with respect to electronic communications or electronic means have been met.
End of inserted block(a) if the regulations provide for a day, on that day;
(b) if the regulations provide for a day and time, on that day and at that time; or
(c) if the regulations do not provide for a day or a day and a time, on the day and at the time that the information is sent.
End of inserted block(a) the provision of information for any purpose under this Part in electronic or other form;
(b) the payment of amounts under this Part by electronic instructions; and
(c) the manner in which and the extent to which any provision of this Part, or its regulations, applies to the electronic communications or electronic means, including electronic systems, and adapting any such provision for the purpose of applying it.
End of inserted block(a) designating as a violation the contravention of a specified provision of this Part;
(b) classifying each violation or series of violations;
(c) respecting the penalties that may be imposed for a violation, including in relation to
(i) the amount, or range of amounts, of the penalties that may be imposed on persons or entities or classes of persons or entities,
(ii) the factors to be taken into account in imposing a penalty,
(iii) the payment of penalties that have been imposed, and
(iv) the recovery, as a debt, of unpaid penalties and any additional penalty to be paid in respect of those unpaid penalties;
(d) respecting the powers, duties and functions of the Canada Border Services Agency and of any person or class of persons who may exercise powers or perform duties or functions with respect to the scheme, including the designation of such persons or classes of persons by the President of the Agency;
(e) respecting the proceedings in respect of a violation, including in relation to
(i) commencing the proceedings,
(ii) the defences that may be available in respect of a violation, and
(iii) the circumstances in which the proceedings may be brought to an end; and
(f) respecting reviews or appeals of any orders or decisions in the proceedings.
End of inserted block(b) collects, analyses, assesses and discloses information in order to assist in the detection, prevention and deterrence of money laundering, of the financing of terrorist activities and Insertion start of sanctions evasion Insertion end , and in order to assist the Minister in carrying out the Minister’s powers and duties under Part 1.1;
(d) operates to enhance public awareness and understanding of matters related to money laundering, the financing of terrorist activities and Insertion start sanctions evasion Insertion end ; and
(a) shall receive reports made under section 7, 7.1, 9, 12 or 20, or in accordance with a directive issued under Part 1.1, incomplete reports sent under subsection 14(5), reports referred to in section 9.1, information provided to the Centre by any agency of another country that has powers and duties similar to those of the Centre, information provided to the Centre by law enforcement agencies or government institutions or agencies, and other information voluntarily provided to the Centre about suspicions of money laundering, of the financing of terrorist activities or Insertion start of sanctions evasion Insertion end ;
(b) may collect information that the Centre considers relevant to money laundering activities, the financing of terrorist activities and Insertion start activities relating to sanctions evasion Insertion end that
(d) information voluntarily provided to the Centre about suspicions of money laundering, of the financing of terrorist activities or Insertion start of sanctions evasion Insertion end ;
(C) a mis ou mettra, directement ou indirectement, des ressources à la disposition d’une entité, au sens de ce paragraphe 83.01(1), qui se livre ou se livrera à des activités Insertion start terroristes Insertion end Insertion start au sens de ce paragraphe ou à des activités visant à les appuyer Insertion end ;
(j) the Department of the Environment, if the Centre also has reasonable grounds to suspect that the information would be relevant to investigating or prosecuting an offence under an Act administered by the Minister of the Environment or an attempt to commit such an offence; and
(k) the Department of Fisheries and Oceans, if the Centre also has reasonable grounds to suspect that the information would be relevant to investigating or prosecuting an offence under an Act an Act administered by the Minister of Fisheries and Oceans or an attempt to commit such an offence.
End of inserted block(a) the name of any person or entity that Insertion start is identified in the report or that Insertion end is involved in the transaction, attempted transaction, importation or exportation or of any person or entity acting on their behalf;
(n) indicators of a money laundering offence, a terrorist activity financing offence or Insertion start a sanctions evasion offence Insertion end related to the transaction, attempted transaction, importation or exportation;
(q) information about the transaction, attempted transaction, importation or exportation, received by the Centre from an institution or agency under an agreement or arrangement referred to in section 56, that constitutes the institution’s or agency’s reasonable grounds to suspect that the information would be relevant to investigating or prosecuting a money laundering offence, a terrorist activity financing offence or Insertion start a sanctions evasion offence Insertion end , or an offence that is substantially similar to Insertion start any of those offences Insertion end ;
(u) any other information set out in a report made under section 7.1.
End of inserted block(a) the name of any person or entity that Insertion start is identified in the report or that Insertion end is involved in the transaction, attempted transaction, importation or exportation or of any person or entity acting on their behalf;
(n) indicators of a money laundering offence, a terrorist activity financing offence, Insertion start a sanctions evasion offence Insertion end or a threat to the security of Canada related to the transaction, attempted transaction, importation or exportation;
(q) information about the transaction, attempted transaction, importation or exportation, received by the Centre from an institution or agency under an agreement or arrangement referred to in section 56, that constitutes the institution’s or agency’s reasonable grounds to suspect that the information would be relevant to investigating or prosecuting a money laundering offence, a terrorist activity financing offence or Insertion start a sanctions evasion offence Insertion end , or an offence that is substantially similar to Insertion start any of those offences Insertion end ;
(u) any other information set out in a report made under section 7.1.
End of inserted block(a) restrict the use of information to purposes relevant to investigating or prosecuting a money laundering offence, a terrorist activity financing offence or Insertion start a sanctions evasion offence Insertion end , or an offence that is substantially similar to Insertion start any of those offences Insertion end ; and
(a) the Centre has reasonable grounds to suspect that the information would be relevant to the investigation or prosecution of a money laundering offence, a terrorist activity financing offence or Insertion start a sanctions evasion offence Insertion end , or an offence that is substantially similar to Insertion start any of those offences Insertion end ; and
(a) the Centre has reasonable grounds to suspect that the information would be relevant to the investigation or prosecution of a money laundering offence, a terrorist activity financing offence or Insertion start a sanctions evasion offence Insertion end , or an offence that is substantially similar to Insertion start any of those offences Insertion end ; and
(a) the name of any person or entity that Insertion start is identified in the report or that Insertion end is involved in the transaction, attempted transaction, importation or exportation or of any person or entity acting on their behalf;
(n) indicators of a money laundering offence, a terrorist activity financing offence or Insertion start a sanctions evasion offence Insertion end related to the transaction, attempted transaction, importation or exportation;
(t) any other information set out in a report made under section 7.1.
End of inserted block(b) conduct research into trends and developments in the area of money laundering, the financing of terrorist activities, Insertion start sanctions evasion Insertion end and the financing of threats to the security of Canada and into improved ways of detecting, preventing and deterring money laundering, the financing of terrorist activities, Insertion start sanctions evasion Insertion end and the financing of threats to the security of Canada; and
(c) undertake measures to inform the public, persons and entities referred to in section 5, authorities engaged in the investigation and prosecution of money laundering offences, terrorist activity financing offences and Insertion start sanctions evasion offences Insertion end , and others, with respect to
(ii.3) the nature and extent of sanctions evasion inside and outside Canada, and
End of inserted blockInsertion start (a) Insertion end a Insertion start person Insertion end who provided a report or information to the Centre;
(b) a Canadian citizen or a permanent resident as defined in subsection 2(1) of the Immigration and Refugee Protection Act about whom a report or information was provided;
End of inserted blockInsertion start (c) Insertion end a person Insertion start in Canada Insertion end or an entity Insertion start that has a place of business in Canada Insertion end about whom a report or information was provided.
(d) the facts relied on to justify the belief, on reasonable grounds, that the person or entity referred to in paragraph (b) has committed or benefited from the commission of a money laundering offence, a terrorist activity financing offence or Insertion start a sanctions evasion offence Insertion end and that the information or documents referred to in paragraph (c) are likely to be of substantial value, whether alone or together with other material, to an investigation in respect of Insertion start any of those offences Insertion end ;
(a) the Director is prohibited from disclosing the information or document by any bilateral or international treaty, convention or other agreement to which the Government of Canada is a signatory respecting the sharing of information related to a money laundering offence, a terrorist activity financing offence or Insertion start a sanctions evasion offence Insertion end or an offence that is substantially similar to Insertion start any of those offences Insertion end ;
(a) the Director is prohibited from disclosing the information or document by any bilateral or international treaty, convention or other agreement to which the Government of Canada is a signatory respecting the sharing of information related to a money laundering offence, a terrorist activity financing offence or Insertion start a sanctions evasion offence Insertion end or an offence that is substantially similar to Insertion start any of those offences Insertion end ;
(k) respecting the reports referred to in section 12(1) Insertion start and the declarations referred to in section 39.02 Insertion end ; and
(a) cause a person or entity referred to in section 5 to be in receipt of cash or virtual currency or involve the initiation of an international electronic funds transfer Insertion start or the making of a disbursement, in any of the following transactions: Insertion end
(i) the redemption of chips, tokens or plaques,
(ii) a front cash withdrawal,
(iii) a safekeeping withdrawal,
(iv) an advance on any form of credit, including an advance by a marker or a counter cheque,
(v) a payment on a bet, including a slot jackpot,
(vi) a payment to a client of funds received for credit to that client or another client,
(vii) the cashing of a cheque or the redemption of another negotiable instrument,
(viii) a reimbursement to a client of travel or entertainment expenses;
End of inserted block2023, c. 26
(b) Insertion start an order or regulation made under Insertion end the United Nations Insertion start Act Insertion end ;
R.S., c. 1 (2nd Supp.)
(a) for the purposes of administering or enforcing this Act, the Customs Tariff, the Excise Act, 2001, the Special Imports Measures Act or Part 2 Insertion start or 2.1 Insertion end of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act or for any purpose set out in subsection (4), (5) or (7);
(b) will be used solely in or to prepare for any legal proceedings relating to the administration or enforcement of an international agreement relating to trade, this Act, the Customs Tariff, the Special Import Measures Act, any other Act of Parliament or law of a province that provides for the imposition or collection of a tax or duty or Part 2 Insertion start or 2.1 Insertion end of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, before
(c) may reasonably be regarded as necessary solely for a purpose relating to the administration or enforcement of this Act, the Customs Tariff, the Excise Act, the Excise Act, 2001, the Excise Tax Act, the Export and Import Permits Act, the Immigration and Refugee Protection Act, the Special Import Measures Act or Part 2 Insertion start or 2.1 Insertion end of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act by an official of the Agency;
(f) will be used solely for a purpose relating to the supervision, evaluation or discipline of a specified person by Insertion start His Insertion end Majesty in right of Canada in respect of a period during which the person was employed or engaged by, or occupied a position of responsibility in the service of, Insertion start His Insertion end Majesty in right of Canada to administer or enforce this Act, the Customs Tariff, the Special Import Measures Act or Part 2 Insertion start or 2.1 Insertion end of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to the extent that the information is relevant for that purpose;
1993, c. 37
(b.1) forfeited under subsection 14(5) Insertion start or 39.03(5) Insertion end , seized under subsection 18(1) Insertion start or 39.06(1) Insertion end or paid under subsection 18(2) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act;
(b.3) if the Minister agrees to be responsible for its custody and management, forfeited under any Act of Parliament, other than under subsection 14(5) Insertion start or 39.03(5) Insertion end of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act or subparagraph 715.34(1)(e)(i) of the Criminal Code or forfeited under any Act of the legislature of a province; or
SOR/2001-317; SOR/2002-185, s. 1
(a) that section 299 is deemed never to have come into force and is repealed; and
(b) paragraph 7.1(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act is replaced by the following:
(b) an order or regulation made under the United Nations Act;
306 (1) Subsection 278(1) and sections 285, 296, 297, 301 and 302 come into force on a day to be fixed by order of the Governor in Council.
(2) Subsection 278(3) and section 279 come into force on a day to be fixed by order of the Governor in Council.
(3) Sections 280, 303 and 304 come into force on the 60th day after the day on which this Act receives royal assent.
R.S., c. C-46
Insertion start (a) Insertion end search the building, receptacle or place for that property; and
Insertion start (b) Insertion end seize that property and any other property Insertion start that Insertion end that person or peace officer believes, on reasonable grounds, Insertion start is proceeds Insertion end of Insertion start crime Insertion end .
(b) seize — including by taking control of the right to access — the digital assets, as well as any other digital assets found during that search that the person or peace officer believes, on reasonable grounds, Insertion start are proceeds Insertion end of Insertion start crime Insertion end .
(c) the grounds for the belief that the property Insertion start is proceeds Insertion end of Insertion start crime Insertion end ;
(a) the account number of a person named in the order or the name of a person whose account number is specified in the order, Insertion start as well as, in the case of digital assets, including virtual currency, the name and account number of a person whose identifier associated with digital assets is specified in the order Insertion end ;
(a) the date of birth of a person who is named or whose account number Insertion start or identifier associated with digital assets Insertion end is specified in the order;
(Sections 320.29, Insertion start 462.32, 462.321 Insertion end and 487)
1993, c. 37
SOR/95-76
317 This Subdivision comes into force on the 90th day after the day on which this Act receives royal assent.
R.S., c. F-8; 1995, c. 17, s. 45
(a) the amount;
(b) the name of the province to which the payment was made; and
(c) the date of the payment.
End of inserted block319 Section 318 is deemed to have come into force on June 22, 2023.
1999, c. 34
(g.1) a person who is a member of an advisory committee established under section 41 of the Public Service Superannuation Act, section 49.1 of the Canadian Forces Superannuation Act or section 25.1 of the Royal Canadian Mounted Police Superannuation Act;
End of inserted blockWhereas public infrastructure and housing are essential for communities to be complete, inclusive and environmentally sustainable;
Whereas these types of communities foster a stronger national economy in which the people of Canada can prosper and thrive;
Whereas advancing public infrastructure and housing outcomes is best achieved through cooperation between governments as well as the meaningful involvement of local communities;
Whereas effective support for infrastructure plays a key role in improving housing outcomes;
And whereas promoting the use of innovative financial tools helps attract investment from the private sector and institutional investors in public infrastructure projects;
Now, therefore, His Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
(a) the Minister of Infrastructure and Communities is to exercise the powers and perform the duties and functions of the Minister of Housing; and
(b) every reference to the Minister of Housing in any Act of Parliament or in any order, regulation or other instrument made under an Act of Parliament is to be read as a reference to the Minister of Infrastructure and Communities, unless the context otherwise requires.
(a) establish, recommend, coordinate and implement initiatives, programs and projects;
(b) make grants and contributions;
(c) collaborate or enter into agreements or other arrangements with other federal, provincial or territorial departments, boards and agencies, local governments, Indigenous bodies or any institution or person;
(d) undertake, coordinate and promote research activities; and
(e) subject to the Statistics Act, collect, analyze, interpret, publish or distribute information.
324 (1) Any person who, immediately before the day on which this section comes into force, holds the office of Deputy Head of Infrastructure and Communities, styled as Deputy Minister of Infrastructure and Communities, is deemed, as of that day, to have been appointed as the Deputy Minister referred to in section 4 of the Department of Housing, Infrastructure and Communities Act, as enacted by section 323.
(2) Nothing in the Department of Housing, Infrastructure and Communities Act is to be construed as affecting the status of any person who, immediately before the day on which this section comes into force, occupies or is assigned to a position in the Office of Infrastructure of Canada, except that, as of that day, the person occupies or is assigned to their position in the Department of Housing, Infrastructure and Communities.
325 Any amount that is appropriated by an Act of Parliament for the fiscal year in which this section comes into force to defray the expenditures of the public service of Canada within the Office of Infrastructure of Canada and that is unexpended on the day on which this section comes into force is deemed to be an amount appropriated to defray the expenditures of the public service of Canada within the Department of Housing, Infrastructure and Communities.
326 On the day on which this section comes into force, every reference to the Office of Infrastructure of Canada in any agreement, contract, instrument or act or other document is to be read as a reference to the Department of Housing, Infrastructure and Communities, unless the context requires otherwise.
R.S., c. A-1
Department of Housing, Infrastructure and Communities
Ministère du Logement, de l’Infrastructure et des Collectivités
Office of Infrastructure of Canada
Bureau de l’infrastructure du Canada
R.S., c. F-11
Department of Housing, Infrastructure and Communities
Ministère du Logement, de l’Infrastructure et des Collectivités
Office of Infrastructure of Canada
Bureau de l’infrastructure du Canada
and the corresponding reference in column II to “Minister of Infrastructure and Communities”.
Office of Infrastructure of Canada
Bureau de l’infrastructure du Canada
Department of Housing, Infrastructure and Communities
Ministère du Logement, de l’Infrastructure et des Collectivités
Office of Infrastructure of Canada
Bureau de l’infrastructure du Canada
and the corresponding reference in column II to “Deputy Head”.
R.S., c. P-21
Department of Housing, Infrastructure and Communities
Ministère du Logement, de l’Infrastructure et des Collectivités
Office of Infrastructure of Canada
Bureau de l’infrastructure du Canada
R.S., c. S-3
(z.26) the Minister of Housing;
1991, c. 30
Department of Housing, Infrastructure and Communities
Ministère du Logement, de l’Infrastructure et des Collectivités
2011, c. 24
2019, c. 29
341 (1) Section 339 comes into force on the second anniversary of the day on which this Act receives royal assent or on an earlier day to be fixed by order of the Governor in Council.
(2) Section 340 comes into force on a day to be fixed by order of the Governor in Council.
1996, c. 23
(c) benefits were not paid for any reason mentioned in paragraph 12(3)(a), Insertion start (a.1) Insertion end , (c), (d), (e) or (f).
(a.1) because the claimant is carrying out the responsibilities described in subsection 22.1(1) is 15;
End of inserted block(a.1) for carrying out the responsibilities described in subsection 22.1(1) in relation to the placement of one or more children for the purpose of adoption as a result of a single placement or the arrival of one or more new-born children as a result of a single pregnancy is 15; and
End of inserted block(a) the placement with the claimant of one or more children for the purpose of adoption under the laws governing adoption in the province in which the claimant resides; or
(b) the arrival of one or more new-born children of the claimant into the claimant’s care, in the case where the person who will be giving or gave birth to the child or children is not, or is not intended to be, a parent of the child or children.
End of inserted block(a) that begins the earlier of
(i) five weeks before the week in which the placement of the child or children with the claimant for the purpose of adoption is expected or the new-born child or children of the claimant are expected to arrive into the claimant’s care, and
(ii) the week in which the child or children are actually placed with the claimant for the purpose of adoption or the new-born child or children of the claimant actually arrive into the claimant’s care; and
(b) that ends 17 weeks after the week in which the child or children are actually placed with the claimant for the purpose of adoption or the new-born child or children of the claimant actually arrive into the claimant’s care.
End of inserted block(a) the claimant has already made a claim for benefits under this section in respect of the same child or children and has served the waiting period;
(b) another major attachment claimant has made a claim for benefits under this section in respect of the same child or children and that other claimant has served or is serving their waiting period;
(c) another major attachment claimant is making a claim for benefits under this section in respect of the same child or children at the same time as the claimant and that other claimant elects to serve the waiting period; or
(d) the claimant or another major attachment claimant meets the prescribed requirements.
End of inserted block(a) if the major attachment claimant is not the one who served or elected to serve the waiting period, that claimant is not required to serve a waiting period; or
(b) if the individual is not the one who served or elected to serve the waiting period, that claimant may have their waiting period deferred in accordance with section 152.041.
End of inserted block(c) benefits were not paid for any reason mentioned in paragraph 12(3)(a), Insertion start (a.1) Insertion end , (c), (d), (e) or (f).
(a) the claimant has already made a claim for benefits under this section or section 22 Insertion start or 22.1 Insertion end in respect of the same child Insertion start or children Insertion end and has served the waiting period;
(b) another major attachment claimant has made a claim for benefits under this section or section 22 Insertion start or 22.1 Insertion end in respect of the same child Insertion start or children Insertion end and that other claimant has served or is serving their waiting period;
(c) another major attachment claimant is making a claim for benefits under this section or section 22 Insertion start or 22.1 Insertion end in respect of the same child Insertion start or children Insertion end at the same time as the claimant and that other claimant elects to serve the waiting period; or
(b) if the individual is not the one who served or elected to serve the waiting period, that claimant may have Insertion start their Insertion end waiting period deferred in accordance with section Insertion start 152.041 or Insertion end 152.05, Insertion start as the case may be Insertion end .
(f.7) prescribing rules for the purposes of subsections Insertion start 22.1(8) Insertion end , 23(4), 23.1(9), 23.2(8), 23.3(6), Insertion start 152.041(8) Insertion end , 152.05(12), 152.06(7), 152.061(8) and 152.062(6);
(a) the payment of any allowances, money or other benefits because of illness, injury, quarantine, pregnancy, Insertion start responsibilities related to a child’s placement or arrival Insertion end , child care, compassionate care, a child’s critical illness or an adult’s critical illness under a plan that covers insured persons employed by the employer, other than one established under a provincial law, would have the effect of reducing the special benefits payable to the insured persons; and
(a) the placement with the self-employed person of one or more children for the purpose of adoption under the laws governing adoption in the province in which the person resides; or
(b) the arrival of one or more new-born children of the self-employed person into the self-employed person’s care, in the case where the person who will be giving or gave birth to the child or children is not, or is not intended to be, a parent of the child or children.
End of inserted block(a) that begins the earlier of
(i) five weeks before the week in which the placement of the child or children with the self-employed person for the purpose of adoption is expected or the new-born child or children of the self-employed person are expected to arrive into the self-employed person’s care, and
(ii) the week in which the child or children are actually placed with the self-employed person for the purpose of adoption or the new-born child or children of the self-employed person actually arrive into the self-employed person’s care; and
(b) that ends 17 weeks after the week in which the child or children are actually placed with the self-employed person for the purpose of adoption or the new-born child or children of the self-employed person actually arrive into the self-employed person’s care.
End of inserted block(a) the self-employed person has already made a claim for benefits under this section in respect of the same child or children and has served the waiting period;
(b) another self-employed person has made a claim for benefits under this section in respect of the same child or children and that other self-employed person has served or is serving their waiting period;
(c) another self-employed person is making a claim for benefits under this section in respect of the same child or children at the same time as the self-employed person and that other self-employed person elects to serve the waiting period; or
(d) the self-employed person or another self-employed person meets the prescribed requirements.
End of inserted block(a) if the self-employed person is not the one who served or elected to serve the waiting period, the self-employed person is not required to serve a waiting period; or
(b) if the person making the claim under section 22.1 is not the one who served or elected to serve the waiting period, the person may have their waiting period deferred in accordance with section 22.1.
End of inserted block(a) the self-employed person has already made a claim for benefits under this section or section 152.04 Insertion start or 152.041 Insertion end in respect of the same child or children and has served the waiting period;
(b) another self-employed person has made a claim for benefits under this section or section 152.04 Insertion start or 152.041 Insertion end in respect of the same child or children and that other self-employed person has served or is serving Insertion start their Insertion end waiting period;
(c) another self-employed person is making a claim for benefits under this section or section 152.04 Insertion start or 152.041 Insertion end in respect of the same child or children at the same time as the self-employed person and that other self-employed person elects to serve the waiting period; or
(b) if the person making the claim under section 22, Insertion start 22.1 Insertion end or 23 is not the one who served or elected to serve the waiting period, the person may have Insertion start their Insertion end waiting period deferred in accordance with section Insertion start 22.1 or Insertion end 23, Insertion start as the case may be Insertion end .
(a.1) carrying out the responsibilities described in subsection 152.041(1);
End of inserted block(a.1) because the self-employed person is carrying out the responsibilities described in subsection 152.041(1) is 15;
End of inserted block(a.1) for carrying out the responsibilities described in subsection 152.041(1) in relation to the placement of one or more children for the purpose of adoption as a result of a single placement or the arrival of one or more new-born children as a result of a single pregnancy is 15; and
End of inserted block355 The Employment Insurance Act, as it read immediately before the day on which sections 345 and 350 come into force, continues to apply to a claimant for the purpose of paying benefits under that Act in respect of a child or children who have, before that day,
(a) been placed with the claimant for the purpose of adoption under the laws governing adoption in the province in which the claimant resides; or
(b) arrived into the care of the claimant.
R.S., c. L-2
placement means
(a) the placement of a child into the actual care of an employee for the purposes of adoption under the laws governing adoption in the province in which the employee resides;
(b) the arrival of a new-born child of an employee into the employee’s actual care, in the case where the person who gave birth to the child is not, or is not intended to be, a parent of the child; or
(c) any other case prescribed by regulation. (placement)
week means the period between midnight on Saturday and midnight on the immediately following Saturday. (semaine)
End of inserted block(a) beginning no earlier than six weeks before the week of the estimated date of the placement or, if the actual date of the placement is earlier than the estimated date, no earlier than the week of that actual date; and
(b) ending no later than 17 weeks following the week of the actual date of that placement.
End of inserted block(a.2) prescribing the maximum number of periods of leave of absence that an employee may take under any of sections Insertion start 206.01 and Insertion end 206.3 to 206.5;
(c.1) prescribing cases for the purposes of paragraph (c) of the definition placement in subsection 206.01(1);
(c.2) defining, for the purposes of section 206.01, any word or expression that is used but not defined in that section;
End of inserted block364 (1) In this section, Act means the Canada Labour Code.
(2) An employee who, on the day on which section 357 comes into force, is on parental leave under section 206.1 of the Act and is eligible for leave for the placement of a child under section 206.01 of the Act may interrupt their parental leave to take leave for the placement of a child. Their parental leave resumes immediately after the interruption ends.
(3) Section 207.1 of the Act applies, with any necessary modifications, with respect to an interruption under subsection (2).
(4) Words and expressions used in this section have the same meaning as in the Act.
365 This Division comes into force on a day to be fixed by order of the Governor in Council.
Published under authority of the Speaker of the House of Commons
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