Economic Action Plan 2013 Act No. 1 (S.C. 2013, c. 33), Канада, WIPO Lex

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Французский Loi n° 1 sur le plan d’action économique de 2013 (L.C. 2013, ch. 33)

Английский Economic Action Plan 2013 Act No. 1 (S.C. 2013, c. 33)

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Economic Action Plan 2013 Act, No. 1

(S.C. 2013, c. 33)

Assented to 2013-06-26

An Act to implement certain provisions of the budget tabled in Parliament on March

21, 2013 and other measures

SUMMARY

Part 1 implements certain income tax measures proposed in the March 21, 2013

budget. Most notably, it

(a) allows certain adoption-related expenses incurred before a child’s adoption

file is opened to be eligible for the Adoption Expense Tax Credit;

(b) introduces an additional credit for first-time claimants of the Charitable

Donations Tax Credit;

(d) adjusts the Dividend Tax Credit and gross-up factor applicable in respect of

dividends other than eligible dividends;

(e) allows collection action for 50% of taxes, interest and penalties in dispute in

respect of a tax shelter that involves a charitable donation;

(f) extends, for one year, the Mineral Exploration Tax Credit for flow-through

share investors;

(g) extends, for two years, the temporary accelerated capital cost allowance for

eligible manufacturing and processing machinery and equipment;

(h) clarifies that the income tax reserve for future services is not available in

respect of reclamation obligations;

(i) phases out the additional deduction available to credit unions over five years;

(j) amends rules regarding the judicial authorization process for imposing a

requirement on a third party to provide information or documents related to an

unnamed person or persons; and

(k) repeals the rules relating to international banking centres.

Part 1 also implements other income tax measures and tax-related measures.

Most notably, it

(a) amends rules relating to caseload management of the Tax Court of Canada;

(b) streamlines the process for approving tax relief for Canadian Forces members

and police officers;

certain family members to open a Registered Disability Savings Plan for an adult

individual who might not be able to enter into a contract; and

(d) simplifies the determination of the Canadian-source income of non-resident

pilots employed by Canadian airlines.

Part 2 implements certain goods and services tax and harmonized sales tax

(GST/HST) measures proposed in the March 21, 2013 budget by

(a) reducing the compliance burden for employers under the GST/HST pension

plan rules;

(b) providing the Minister of National Revenue the authority to withhold GST/HST

refunds claimed by a business where the business has failed to provide certain

GST/HST registration information;

to include personal care services provided to individuals who require such

assistance at home;

(d) clarifying that reports, examinations and other services that are supplied for a

non-health-care-related purpose do not qualify for the GST/HST exemption for

basic health care services; and

(e) ending the current GST/HST point-of-sale relief for the Governor General.

Part 2 also amends the Excise Tax Act and Excise Act, 2001 to modify the rules

regarding the judicial authorization process for imposing a requirement on a third

party to provide information or documents related to an unnamed person or persons.

In addition, Part 2 amends the Excise Act, 2001 to ensure that the excise duty

rate applicable to manufactured tobacco other than cigarettes and tobacco sticks is

consistent with that applicable to other tobacco products.

Part 3 implements various measures, including by enacting and amending

several Acts.

Division 1 of Part 3 amends the Customs Tariff to extend for ten years, until

December 31, 2024, provisions relating to Canada’s preferential tariff treatments for

developing and least-developed countries. Also, Division 1 reduces the rate of duty

under tariff treatments in respect of a number of items relating to baby clothing and

certain sports and athletic equipment imported into Canada on or after April 1, 2013.

Division 2 of Part 3 amends the Trust and Loan Companies Act, the Bank Act, the

Insurance Companies Act and the Cooperative Credit Associations Act to remove

some residency requirements to provide flexibility for financial institutions to

efficiently structure the committees of their boards of directors.

Division 3 of Part 3 amends the Federal-Provincial Fiscal Arrangements Act to

renew the equalization and territorial formula financing programs until March 31,

2019 and to implement total transfer protection for the 2013-2014 fiscal year. That

Act is also amended to clarify the time of calculation of the growth rate of the Canada

Health Transfer for each fiscal year beginning after March 31, 2017.

Division 4 of Part 3 authorizes payments to be made out of the Consolidated

Revenue Fund to certain entities or for certain purposes.

Division 5 of Part 3 amends the Canadian Securities Regulation Regime

Transition Office Act to remove the statutory dissolution date of the Canadian

Securities Regulation Regime Transition Office and to provide authority for the

Governor in Council, on the Minister of Finance’s recommendation, to set another

date for the dissolution of that Office.

Division 6 of Part 3 amends the Investment Canada Act to clarify how proposed

investments in Canada by foreign state-owned enterprises and WTO investors will

be assessed and to allow for the extension, when necessary, of timelines associated

with national security reviews.

Division 7 of Part 3 amends the Canada Pension Plan to ensure that the Canada

Revenue Agency can accurately identify, calculate and refund overpayments made

to the Canada Pension Plan and the Quebec Pension Plan in a particular year by

contributors who live outside Quebec.

Division 8 of Part 3 amends the Pension Act and the War Veterans Allowance Act

to ensure that veterans’ disability benefits are no longer deducted when calculating

war veterans allowance.

Division 9 of Part 3 amends the Immigration and Refugee Protection Act to

authorize the revocation of temporary foreign worker permits, the revocation and

suspension of opinions provided by the Department of Human Resources and Skills

Development with respect to an application for a work permit and the refusal to

process requests for such opinions. It authorizes fees to be paid for rights and

privileges conferred by means of a work permit and exempts, from the application of

the User Fees Act, those fees as well as fees for the provision of services in relation

to the processing of applications for a temporary resident visa, work permit, study

permit or extension of an authorization to remain in Canada as a temporary resident

or in relation to requests for an opinion with respect to an application for a work

permit.

It also provides that decisions made by the Refugee Protection Division under the

Immigration and Refugee Protection Act in respect of claims for refugee protection

that were referred to that Division during a specified period are not subject to appeal

to the Refugee Appeal Division if they take effect after a certain date.

Division 10 of Part 3 amends the Citizenship Act to expand the Governor in

Council’s authority to make regulations respecting fees for services provided in the

administration of that Act and cases in which those fees may be waived. It also

exempts, from the application of the User Fees Act, fees for services provided in the

administration of the Citizenship Act.

Division 11 of Part 3 amends the Nuclear Safety and Control Act to authorize the

Canadian Nuclear Safety Commission to spend for its purposes the revenue it

receives from the fees it charges for licences.

Division 12 of Part 3 enacts the Department of Foreign Affairs, Trade and

Development Act, sets out the powers, duties and functions of the Minister of Foreign

Affairs, the Minister for International Trade and the Minister for International

Development and provides for the amalgamation of the Department of Foreign

Affairs and International Trade and the Canadian International Development Agency.

Division 13 of Part 3 authorizes the taking of measures with respect to the

reorganization and divestiture of all or any part of Ridley Terminals Inc.

Division 14 of Part 3 amends the National Capital Act and the Department of

Canadian Heritage Act to transfer certain powers, duties and functions to the Minister

of Canadian Heritage from the National Capital Commission. It also makes

consequential amendments to the National Holocaust Monument Act to change the

Minister responsible for the construction of the monument to the Minister of

Canadian Heritage from the Minister responsible for the National Capital Act.

Division 15 of Part 3 amends the Salaries Act to add ministerial positions for

regional development responsibilities for northern Canada, and northern and

southern Ontario. It also amends the Salaries Act to replace a reference to the

Solicitor General of Canada with a reference to the Minister of Public Safety and

Emergency Preparedness. It also makes an amendment to the Parliament of

Canada Act to provide that the maximum number of Parliamentary Secretaries who

may be appointed is equal to the number of ministers for whom salaries are provided

in the Salaries Act.

Division 16 of Part 3 amends the Department of Public Works and Government

Services Act to remove the requirement for the Minister of Public Works and

Government Services to obtain a request from a government, body or person in

Canada or elsewhere in order for the Minister to do certain things for or on their

behalf. It also amends that Act to specify that the Governor in Council’s approval

relating to those things may be given on a general or a specific basis.

Division 17 of Part 3 amends the Financial Administration Act to give the

Governor in Council the authority to direct a Crown corporation to have its

negotiating mandate approved by the Treasury Board for the purpose of the Crown

corporation entering into a collective agreement with a bargaining agent. It also gives

the Treasury Board the authority to require that an employee under the jurisdiction of

the Secretary of the Treasury Board observe the collective bargaining between the

Crown corporation and the bargaining agent. It requires that a Crown corporation

that is directed to have its negotiating mandate approved obtain the Treasury

Board’s approval before entering into a collective agreement. It also gives the

Governor in Council the authority to direct a Crown corporation to obtain the

Treasury Board’s approval before the Crown corporation fixes the terms and

conditions of employment of certain of its non-unionized employees. Finally, it makes

consequential amendments to other Acts.

Division 18 of Part 3 amends the Keeping Canada’s Economy and Jobs Growing

Act to provide for increases to the sums that may be paid out of the Consolidated

Revenue Fund for municipal, regional and First Nations infrastructure through the

Gas Tax Fund. It also provides that the sums may be paid on the requisition of the

Minister of Indian Affairs and Northern Development.

Her Majesty, by and with the advice and consent of the Senate and House of

Commons of Canada, enacts as follows:

SHORT TITLE

Short title

1. This Act may be cited as the Economic Action Plan 2013 Act, No. 1.

PART 1 AMENDMENTS TO THE INCOME TAX ACT, THE TAX COURT OF CANADA ACT

AND THE INCOME TAX REGULATIONS

R.S., C. 1 (5TH SUPP.) INCOME TAX ACT

2. (1) Subsection 18(1) of the Income Tax Act is amended by adding the

following after paragraph (n( �

Safety deposit box

(l.1) an amount paid or payable in respect of the use of a safety deposit box of a

financial institution;

(2) Subsection (1) applies to taxation years that begin after March 20, 2013.

3. (1) Subsection 20(7) of the Act is amended by striking out “or” at the end

of paragraph (b), by adding “or” at the end of paragraph (c) and by adding the

following after paragraph (c):

(d) as a reserve in respect of a reclamation obligation.

(2) Subsection (1) applies in respect of amounts received after March 20,

2013. However, that subsection does not apply in respect of an amount

received that is directly attributable to a reclamation obligation, that was

authorized by a government or regulatory authority before March 21, 2013 and

that is received

(a) under a written agreement between the taxpayer and another party

(other than a government or regulatory authority) that was entered into

before March 21, 2013 and not extended or renewed on or after that day; or

(b) before 2018.

4. (1) Section 33.1 of the Act is repealed.

(2) Subsection (1) applies to taxation years that begin after March 20, 2013.

5. (1) Subparagraph 82(1)(b)(i) of the Act is replaced by the following:

(i) 18% of the amount determined under paragraph (a) in respect of the

taxpayer for the taxation year, and

(2) Subsection (1) applies to dividends paid after 2013.

6. (1) Paragraph 87(2)(j.8) of the Act is repealed.

(2) Subsection (1) applies to taxation years that begin after March 20, 2013.

7. (1) Clause 110(1)(f)(v)(A) of the Act is replaced by the following:

(A) the employment income earned by the taxpayer as a member of the

Canadian Forces, or as a police officer, while serving on a deployed

operational mission (as determined by the Department of National

Defence) that is

(I) assessed for risk allowance at level 3 or higher (as determined by

the Department of National Defence), or

(II) assessed at a risk score greater than 1.99 and less than 2.50 (as

determined by the Department of National Defence) and designated by

the Minister of Finance, and

(2) Section 110 of the Act is amended by adding the following after

subsection (1.2):

Designated mission

(1.3) The Minister of Finance may, on the recommendation of the Minister of

National Defence (in respect of members of the Canadian Forces) or the Minister of

Public Safety (in respect of police officers), designate a deployed operational mission

for the purposes of subclause (1)(f)(v)(A)(II). The designation shall specify the day on

which it comes into effect, which may precede the day on which the designation is

made.

(3) Subsections (1) and (2) apply in respect of missions initiated after

September 2012 and in respect of missions initiated before October 2012 that

were not prescribed under Part LXXV of the Income Tax Regulations as that

Part read on February 28, 2013.

8. (1) Section 115 of the Act is amended by adding the following after

subsection (2.3):

Non-resident employed as aircraft pilot

(3) For the purpose of applying subparagraph (1)(a)(i) to a non-resident person

employed as an aircraft pilot, income of the non-resident person that is attributable to

a flight (including a leg of a flight) and paid directly or indirectly by a person resident

in Canada is attributable to duties performed in Canada in the following proportions:

(a) all of the income attributable to the flight if the flight departs from a location in

Canada and arrives at a location in Canada;

(b) one-half of the income attributable to the flight if the flight departs from a

location in Canada and arrives at a location outside Canada;

location outside Canada and arrives at a location in Canada; and

(d) none of the income attributable to the flight if the flight departs from a location

outside Canada and arrives at a location outside Canada.

(2) Subsection (1) applies to the 2013 and subsequent taxation years.

9. (1) Paragraph (a) of the definition “adoption period” in subsection 118.01

(1) of the Act is replaced by the following:

(a) begins at the earlier of the time that an application is made for registration with

a provincial ministry responsible for adoption (or with an adoption agency

licensed by a provincial government) and the time, if any, that an application

related to the adoption is made to a Canadian court; and

(2) Subsection (1) applies to the 2013 and subsequent taxation years.

10. (1) Subsection 118.1(1) of the Act is amended by adding the following in

alphabetical order:

“first-time donor”

« premier donateur »

“first-time donor”, for a taxation year, means an individual (other than a trust)

(a) who has not deducted an amount under subsection (3) for a preceding

taxation year that ends after 2007, and

(b) who is not, at the end of the year, married to a person (other than a person

who was at that time separated from the individual by reason of a breakdown of

their marriage), or in a common-law partnership with a person, who has deducted

an amount under subsection (3) for a preceding taxation year that ends after

2007;

(2) The definition “first-time donor” in subsection 118.1(1) of the Act, as

enacted by subsection (1), is repealed.

(3) Section 118.1 of the Act is amended by adding the following after

subsection (3):

First-time donor credit

(3.1) For the purpose of computing the tax payable under this Part by a first-time

donor for a taxation year that begins after 2012 and ends before 2018, the first-time

donor may deduct an amount not exceeding the lesser of $250 and the amount that

is 25% of the total of all amounts, each of which is an eligible amount of a gift of

money in the year or in any of the four preceding taxation years and in respect of

which the first-time donor — or a person who is, at the end of the year, the first-time

donor’s spouse (other than a person who was at that time separated from the first-

time donor by reason of a breakdown of their marriage) or common-law partner —

has deducted an amount for the year under subsection (3).

Apportionment of credit

(3.2) If, at the end of a taxation year, both an individual and a person with whom

the individual is married (other than a person who was at that time separated from

the individual by reason of a breakdown of their marriage) or is in a common-law

partnership may deduct an amount under subsection (3.1) for the year, the total of all

amounts so deductible by the individual and the other person shall not exceed the

maximum amount that would be deductible for the year by either person if the

individual were the only one entitled to deduct an amount under subsection (3.1),

and where the individual and the other person cannot agree as to what portion of the

amount each can deduct, the Minister may fix the portions.

(4) Subsections 118.1(3.1) and (3.2) of the Act, as enacted by subsection (3),

are repealed.

(5) Subsections (1) and (3) apply in respect of gifts made after March 20,

2013.

(6) Subsections (2) and (4) apply to the 2018 and subsequent taxation years.

11. (1) Paragraph 121(a) of the Act is replaced by the following:

(a) 13/18 of the amount, if any, that is required by subparagraph 82(1)(b)(i) to be

included in computing the individual’s income for the year; and

(2) Subsection (1) applies to dividends paid after 2013.

12. (1) Subparagraph (a)(iv) of the definition “full rate taxable income” in

subsection 123.4(1) of the Act is replaced by the following:

(iv) if the corporation is a credit union throughout the year and the corporation

deducted an amount for the year under subsection 125(1) (because of the

application of subsections 137(3) and (4)), the amount, if any, determined for

B in subsection 137(3) in respect of the corporation for the year;

(2) Subsection (1) applies to taxation years that end after March 20, 2013.

13. (1) The definition “non-business-income tax” in subsection 126(7) of the

Act is amended by adding “or” at the end of paragraph (g) and by repealing

paragraph (h).

(2) Subsection (1) applies to taxation years that begin after March 20, 2013.

14. (1) Paragraph (a) of the definition “flow-through mining expenditure” in

subsection 127(9) of the Act is replaced by the following:

(a) that is a Canadian exploration expense incurred by a corporation after March

2013 and before 2015 (including, for greater certainty, an expense that is deemed

by subsection 66(12.66) to be incurred before 2015) in conducting mining

exploration activity from or above the surface of the earth for the purpose of

determining the existence, location, extent or quality of a mineral resource

described in paragraph (a) or (d) of the definition “mineral resource” in subsection

248(1),

(2) Paragraphs (c) and (d) of the definition “flow-through mining

expenditure” in subsection 127(9) of the Act are replaced by the following:

(12.6) by the corporation to the taxpayer (or a partnership of which the taxpayer is

a member) under an agreement described in that subsection and made after

March 2013 and before April 2014, and

(d) that is not an expense that was renounced under subsection 66(12.6) to the

corporation (or a partnership of which the corporation is a member), unless that

renunciation was under an agreement described in that subsection and made

after March 2013 and before April 2014;

(3) Subsections (1) and (2) apply to expenses renounced under a flow-

through share agreement entered into after March 2013.

15. (1) Subsection 137(3) of the Act is replaced by the following:

Additional deduction

(3) There may be deducted from the tax otherwise payable under this Part for a

taxation year by a corporation that was, throughout the year, a credit union, an

amount equal to the amount determined by the formula

A × B × C

where

is the rate that would, if subsection 125(1.1) applied to the corporation for the

year, be its small business deduction rate for the year within the meaning

assigned by that subsection,

is the amount, if any, determined by the formula

D – E

where

is the lesser of

(a) the corporation’s taxable income for the year, and

(b) the amount, if any, by which 4/3 of the corporation’s maximum cumulative

reserve at the end of the year exceeds the corporation’s preferred-rate

amount at the end of the immediately preceding taxation year, and

is the least of the amounts determined under paragraphs 125(1)(a) to (c) in

respect of the corporation for the year, and

is the percentage that is the total of

(a) the proportion of 100% that the number of days in the year that are before

March 21, 2013 is of the number of days in the year,

(b) the proportion of 80% that the number of days in the year that are after March

20, 2013 and before 2014 is of the number of days in the year,

the number of days in the year,

(d) the proportion of 40% that the number of days in the year in 2015 is of the

number of days in the year,

(e) the proportion of 20% that the number of days in the year in 2016 is of the

number of days in the year, and

(f) if one or more days in the year are after 2016, 0%.

(2) Subsection (1) applies to taxation years that end after March 20, 2013.

16. (1) The portion of subsection 146.4(1.5) of the Act before paragraph (a)

is replaced by the following:

Beneficiary replacing holder

(1.5) Any holder of a disability savings plan who was a qualifying person in

relation to the beneficiary under the plan at the time the plan (or another registered

disability savings plan of the beneficiary) was entered into solely because of

paragraph (c) of the definition “qualifying person” in subsection (1) ceases to be a

holder of the plan and the beneficiary becomes the holder of the plan if

(2) The portion of subsection 146.4(1.6) of the Act before paragraph (a) is

replaced by the following:

Entity replacing holder

(1.6) If an entity described in subparagraph (a)(ii) or (iii) of the definition

“qualifying person” in subsection (1) is appointed in respect of a beneficiary of a

disability savings plan and a holder of the plan was a qualifying person in relation to

the beneficiary at the time the plan (or another registered disability savings plan of

the beneficiary) was entered into solely because of paragraph (c) of that definition,

(3) Subsection 146.4(1.7) of the Act is replaced by the following:

Rules applicable in case of dispute

(1.7) If a dispute arises as a result of an issuer’s acceptance of a qualifying family

member who was a qualifying person in relation to the beneficiary at the time the

plan (or another registered disability savings plan of the beneficiary) was entered into

solely because of paragraph (c) of the definition “qualifying person” in subsection (1)

as a holder of a disability savings plan, from the time the dispute arises until the time

that the dispute is resolved or an entity becomes the holder of the plan under

subsection (1.5) or (1.6), the holder of the plan shall use their best efforts to avoid

any reduction in the fair market value of the property held by the plan trust, having

regard to the reasonable needs of the beneficiary under the plan.

(4) Paragraph 146.4(4)(c) of the Act is replaced by the following:

in relation to the beneficiary) that is a holder of the plan ceases to be a qualifying

person in relation to the beneficiary at any time, the entity ceases at that time to

be a holder of the plan;

(5) The portion of paragraph 146.4(13)(e) of the Act before subparagraph (i)

is replaced by the following:

(e) if the issuer enters into the plan with a qualifying family member who was a

qualifying person in relation to the beneficiary at the time the plan (or another

registered disability savings plan of the beneficiary) was entered into solely

because of paragraph (c) of the definition “qualifying person” in subsection (1),

(6) Subsection 146.4(14) of the Act is replaced by the following:

Issuer’s liability

(14) If, after reasonable inquiry, an issuer of a disability savings plan is of the

opinion that an individual’s contractual competence to enter into a disability savings

plan is in doubt, no action lies against the issuer for 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).

(7) Subsections (1) to (6) are deemed to have come into force on June 29,

2012.

17. (1) Subparagraph 164(1.1)(d)(ii) of the Act is replaced by the following:

(ii) 1/2 of the amount so assessed that is in controversy if

(A) the taxpayer is a large corporation (within the meaning assigned by

subsection 225.1(8)), or

(B) the amount is in respect of a particular amount claimed under section

110.1 or 118.1 and the particular amount was claimed in respect of a tax

shelter.

(2) Subsection (1) applies in respect of amounts assessed for taxation

years that end after 2012.

18. (1) Section 171 of the Act is amended by adding the following after

subsection (1.1):

Partial disposition of appeal

(2) If an appeal raises more than one issue, the Tax Court of Canada may, with

the consent in writing of the parties to the appeal, dispose of a particular issue by

(a) dismissing the appeal with respect to the particular issue; or

(b) allowing the appeal with respect to the particular issue and

(i) varying the assessment, or

(ii) referring the assessment back to the Minister for reconsideration and

reassessment.

Disposal of remaining issues

(3) If a particular issue has been disposed of under subsection (2), the appeal

with respect to the remaining issues may continue.

Appeal to Federal Court of Appeal

(4) If the Tax Court of Canada has disposed of a particular issue under

subsection (2), the parties to the appeal may, in accordance with the provisions of

the Tax Court of Canada Act or the Federal Courts Act, as they relate to appeals

from decisions of the Tax Court of Canada, appeal the disposition to the Federal

Court of Appeal as if it were a final judgment of the Tax Court of Canada.

(2) Subsection (1) applies with respect to issues disposed of by the Tax

Court of Canada after the day on which this Act receives royal assent.

19. (1) Subsections 174(1) to (4.1) of the Act are replaced by the following:

Common questions

174. (1) The Minister may apply to the Tax Court of Canada for a determination of

a question if the Minister is of the opinion that the question is common to

assessments or proposed assessments in respect of two or more taxpayers and is a

question of law, fact or mixed law and fact arising out of

(a) one and the same transaction or occurrence or series of transactions or

occurrences; or

(b) substantially similar transactions or occurrences or series of transactions or

occurrences.

Application to Court

(2) An application under subsection (1)

(a) shall set out

(i) the question in respect of which the Minister requests a determination,

(ii) the names of the taxpayers that the Minister seeks to have bound by the

determination of the question, and

(iii) the facts and reasons on which the Minister relies and on which the

Minister based or intends to base assessments of tax payable by each of the

taxpayers named in the application; and

(b) shall be served by the Minister on each of the taxpayers named in the

application and on any other persons who, in the opinion of the Tax Court of

Canada, are likely to be affected by the determination of the question,

(i) by sending a copy to each taxpayer so named and each other person so

likely to be affected, or

(ii) on ex parte application by the Minister, in accordance with the directions of

the Court.

Determination of question by Tax Court

(3) If the Tax Court of Canada is satisfied that a question set out in an application

under this section is common to assessments or proposed assessments in respect of

two or more taxpayers who have been served with a copy of the application, the Tax

Court of Canada may

(a) make an order naming the taxpayers in respect of whom the question will be

determined;

(b) if one or more of the taxpayers so served has or have appealed an

assessment to the Tax Court of Canada in respect of which the question is

relevant, make an order joining a party or parties to that or those appeals as it

considers appropriate; and

Determination final and conclusive

(4) Subject to subsection (4.1), if a question set out in an application under this

section is determined by the Tax Court of Canada, the determination is final and

conclusive for the purposes of any assessments of tax payable by the taxpayers

named in the order made under paragraph (3)(a).

Appeal

(4.1) If a question set out in an application under this section is determined by the

Tax Court of Canada, an appeal from the determination may, in accordance with the

provisions of the Tax Court of Canada Act or the Federal Courts Act, as they relate

to appeals from decisions of the Tax Court of Canada to the Federal Court of Appeal,

be made by

(a) the Minister; or

(b) any taxpayer named in an order of the Court made under paragraph (3)(a) if

(i) the question arises out of one and the same transaction or occurrence or

series of transactions or occurrences,

(ii) the taxpayer has appealed an assessment to the Tax Court of Canada in

respect of which the question is relevant, or

(iii) the taxpayer has been granted leave by a judge of the Federal Court of

Appeal.

Binding to appeal

(4.2) Any taxpayer named in an order made under paragraph (3)(a) in respect of

a question is bound by any determination in respect of the question under an appeal

made to the Federal Court of Appeal or the Supreme Court of Canada.

(2) Subsection (1) applies in respect of applications made after the day on

which this Act receives royal assent.

20. (1) The portion of subsection 225.1(7) of the Act before paragraph (a) is

replaced by the following:

One-half collection

(7) If an amount has been assessed under this Act in respect of a corporation for

a taxation year in which it was a large corporation, or in respect of a particular

amount claimed under section 110.1 or 118.1 where the particular amount was

claimed in respect of a tax shelter, then subsections (1) to (4) do not limit any action

of the Minister to collect

(2) Subsection (1) applies in respect of amounts assessed for taxation

years that end after 2012.

21. (1) The portion of subsection 231.2(3) of the Act before paragraph (a) is

replaced by the following:

Judicial authorization

(3) A judge of the Federal Court may, on application by the Minister and subject

to any conditions that the judge considers appropriate, authorize the Minister to

impose on a third party a requirement under subsection (1) relating to an unnamed

person or more than one unnamed person (in this section referred to as the “group”)

if the judge is satisfied by information on oath that

(2) Subsections 231.2(4) to (6) of the Act are repealed.

(3) Subsections (1) and (2) apply to applications made by the Minister of

National Revenue after the day on which this Act receives royal assent.

R.S., C. T-2 TAX COURT OF CANADA ACT

2002, c. 22, s. 408(6)

22. (1) Subparagraph 2.2(2)(c)(ii) of the Tax Court of Canada Act is replaced

by the following:

(ii) any penalty under that Part that is in issue in the appeal, and

(2) Subsection (1) applies with respect to appeals for which a notice of

appeal is filed with the Tax Court of Canada after the day on which this Act

receives royal assent.

R.S., c. 51 (4th Supp.), s. 5; 1993, c. 27, s. 216(1)

23. (1) Section 17.3 of the Act is replaced by the following:

Examinations for discovery — Income Tax Act

17.3 (1) If the aggregate of all amounts in issue in an appeal under the Income

Tax Act is $50,000 or less, or if the amount of the loss that is determined under

subsection 152(1.1) of that Act and that is in issue is $100,000 or less, an oral

examination for discovery is not to be held unless the parties consent to it or unless

one of the parties applies for it and the Court is of the opinion that the case could not

properly be conducted without that examination for discovery.

Examinations for discovery — Excise Tax Act

(2) If the amount in dispute in an appeal under Part IX of the Excise Tax Act is

$50,000 or less, an oral examination for discovery is not to be held unless the parties

consent to it or unless one of the parties applies for it and the Court is of the opinion

that the case could not properly be conducted without that examination for discovery.

Consideration on application

(3) In considering an application under subsection (1) or (2), the Court may

consider the extent to which the appeal is likely to affect any other appeal of the

party who instituted the appeal or relates to an issue that is common to a group or

class of persons.

Mandatory examination

(4) The Court shall order an oral examination for discovery in an appeal referred

to in subsection (1) or (2), on the request of one of the parties, if the party making the

request agrees to submit to an oral examination for discovery by the other party and

to pay the costs in respect of that examination for discovery of that other party in

accordance with the tariff of costs set out in the rules of Court.

(2) Subsection (1) applies with respect to appeals for which a notice of

appeal is filed with the Tax Court of Canada after the day on which this Act

receives royal assent.

R.S., c. 51 (4th Supp.) s. 5; SOR/93-295, ss. 3 and 4

24. (1) Paragraphs 18(1)(a) and (b) of the Act are replaced by the following:

(a) the aggregate of all amounts in issue is equal to or less than $25,000; or

(b) the amount of the loss that is determined under subsection 152(1.1) of that

Act and that is in issue is equal to or less than $50,000.

(2) Subsection (1) applies with respect to appeals for which a notice of

appeal is filed with the Tax Court of Canada after the day on which this Act

receives royal assent.

R.S., c. 51 (4th Supp.) s. 5; SOR/93-295, ss. 3 and 4

25. (1) Section 18.1 of the Act is replaced by the following:

Limit

18.1 Every judgment that allows an appeal referred to in subsection 18(1) is

deemed to include a statement that the aggregate of all amounts in issue not be

reduced by more than $25,000 or that the amount of the loss in issue not be

increased by more than $50,000, as the case may be.

(2) Subsection (1) applies with respect to appeals for which a notice of

appeal is filed with the Tax Court of Canada after the day on which this Act

receives royal assent.

R.S., c. 51 (4th Supp.) s. 5; SOR/93-295, s. 3

26. (1) The portion of paragraph 18.11(2)(b) of the Act after subparagraph

(iii) is replaced by the following:

exceeds $25,000.

R.S., c. 51 (4th Supp.) s. 5; SOR/93-295, s. 3

(2) Subsection 18.11(3) of the Act is replaced by the following:

General procedure applies — interest exceeding $25,000

(3) The Court shall grant an application under subsection (1) if the amount of

interest that is in issue in an appeal exceeds $25,000.

(3) Subsections (1) and (2) apply with respect to appeals for which a notice

of appeal is filed with the Tax Court of Canada after the day on which this Act

receives royal assent.

R.S., c. 51 (4th Supp.) s. 5; SOR/93-295, ss. 3 and 4

27. (1) Sections 18.12 and 18.13 of the Act are replaced by the following:

Order for general procedure

18.12 (1) The Court shall order that sections 17.1 to 17.8 apply in respect of an

appeal referred to in subsection 18(1) if, before the start of the hearing of the appeal,

it appears to the Court that

(a) the aggregate of all amounts in issue exceeds $25,000; or

(b) the amount of the loss in issue exceeds $50,000.

Limitation

(2) Subsection (1) does not apply if the appellant elects to limit the aggregate of

all amounts in issue to $25,000 or the amount of the loss in issue to $50,000, as the

case may be.

Order at hearing

18.13 (1) The Court shall, on motion of either party or of its own motion, order

that sections 17.1 to 17.8 apply with respect to an appeal referred to in subsection 18

(1) if, after the hearing of the appeal has started but before a judgment is rendered

on the appeal, it appears to the Court that

(a) the aggregate of all amounts in issue exceeds $25,000; or

(b) the amount of loss in issue exceeds $50,000.

Limitation

(2) Subsection (1) does not apply if

(a) the appellant elects to limit the aggregate of all amounts in issue to $25,000 or

the amount of the loss in issue to $50,000, as the case may be; or

(b) the amount of the excess is too small to justify a re-hearing in accordance with

the general procedure, taking into account the inconvenience and expense that

would result to the parties and the interests of justice and fairness.

(2) Subsection (1) applies with respect to appeals for which a notice of

appeal is filed with the Tax Court of Canada after the day on which this Act

receives royal assent.

2006, c. 11, s. 31

28. Section 18.27 of the Act is replaced by the following:

Regulations

18.27 The Governor in Council may make regulations

(a) increasing the amount of $25,000 referred to in paragraph 18(1)(a), section

18.1, paragraph 18.11(2)(b), subsection 18.11(3), and sections 18.12 and 18.13

to any amount that does not exceed $50,000;

(b) increasing the amount of $50,000 referred to in paragraph 18(1)(b), and

sections 18.1, 18.12 and 18.13 to any amount that does not exceed $100,000;

and

18.3008(c) and subparagraph 18.3009(1)(c)(i) to any amount that does not

exceed $12,000.

2002, c. 22, s. 408(11)

29. (1) Section 18.3001 of the Act is replaced by the following:

Application — Excise Act, 2001, Customs Act, and Excise Tax Act

18.3001 Subject to section 18.3002, this section and sections 18.3003, 18.3005

and 18.3008 to 18.302 apply, with any modifications that the circumstances require,

to an appeal under

(a) the Excise Act, 2001 if

(i) a person has so elected in the notice of appeal for an appeal under that Act

or at such later time as may be provided in the rules of Court, and

(ii) the amount in dispute does not exceed $25,000;

(b) Part V.1 of the Customs Act if a person has so elected in the notice of appeal

for an appeal under that Act or at such later time as may be provided in the rules

of Court; and

(i) a person has so elected in the notice of appeal for an appeal under that Act

or at such later time as may be provided in the rules of Court, and

(ii) the amount in dispute does not exceed $50,000.

Limit — Excise Act, 2001

18.30011 Every judgment that allows an appeal referred to in paragraph 18.3001

(a) is deemed to include a statement that the amount in dispute not be reduced by

more than $25,000.

Limit — Excise Tax Act

18.30012 Every judgment that allows an appeal referred to in paragraph 18.3001

more than $50,000.

(2) Subsection (1) applies with respect to appeals for which a notice of

appeal is filed with the Tax Court of Canada after the day on which this Act

receives royal assent.

1998, c. 19, s. 297(1)

30. (1) Subsection 18.3002(1) of the Act is replaced by the following:

General procedure to apply

18.3002 (1) If the Attorney General of Canada so requests, the Court shall order

that

(a) in the case of an appeal referred to in paragraph 18.3001(a) or (b), sections

17.1, 17.2 and 17.4 to 17.8 apply to an appeal in respect of which sections

18.3003, 18.3005 and 18.3008 to 18.302 would otherwise apply; and

(b) in the case of an appeal referred to in paragraph 18.3001(c), sections 17.1 to

17.8 apply to an appeal in respect of which sections 18.3003, 18.3005 and

18.3008 to 18.302 would otherwise apply.

(2) Subsection (1) applies with respect to appeals for which a notice of

appeal is filed with the Tax Court of Canada after the day on which this Act

receives royal assent.

31. (1) The Act is amended by adding the following after section 18.3002:

Order for general procedure — Excise Act, 2001

18.30021 If, before the start of the hearing of an appeal referred to in paragraph

18.3001(a), it appears to the Court that the amount in dispute exceeds $25,000, the

Court shall order that sections 17.1, 17.2 and 17.4 to 17.8 apply in respect of the

appeal unless the appellant elects to limit the appeal to $25,000.

Order for general procedure — Excise Tax Act

18.30022 If, before the start of the hearing of an appeal referred to in paragraph

18.3001(c), it appears to the Court that the amount in dispute exceeds $50,000, the

Court shall order that sections 17.1 to 17.8 apply in respect of the appeal unless the

appellant elects to limit the appeal to $50,000.

Order at hearing — Excise Act, 2001

18.30023 If, after the hearing of an appeal referred to in paragraph 18.3001(a)

has started but before a judgment is rendered on the appeal, it appears to the Court

that the amount in dispute exceeds $25,000, the Court shall, on motion of either

party or of its own motion, order that sections 17.1, 17.2 and 17.4 to 17.8 apply with

respect to the appeal unless

(a) the appellant elects to limit the appeal to $25,000; or

(b) the amount of the excess is too small to justify a re-hearing in accordance with

the general procedure, taking into account the inconvenience and expense that

would result to the parties and the interests of justice and fairness.

Order at hearing — Excise Tax Act

18.30024 If, after the hearing of an appeal referred to in paragraph 18.3001(c)

has started but before a judgment is rendered on the appeal, it appears to the Court

that the amount in dispute exceeds $50,000, the Court shall, on motion of either

party or of its own motion, order that sections 17.1 to 17.8 apply with respect to the

appeal unless

(a) the appellant elects to limit the appeal to $50,000; or

(b) the amount of the excess is too small to justify a re-hearing in accordance with

the general procedure, taking into account the inconvenience and expense that

would result to the parties and the interests of justice and fairness.

(2) Subsection (1) applies with respect to appeals for which a notice of

appeal is filed with the Tax Court of Canada after the day on which this Act

receives royal assent.

C.R.C., C. 945 INCOME TAX REGULATIONS

32. (1) Subsection 400(1.1) of the Income Tax Regulations is repealed.

(2) Subsection (1) applies to taxation years that begin after March 20, 2013.

33. (1) Subsection 413(1) of the Regulations is replaced by the following:

413. (1) In this Part, if a corporation is not resident in Canada

(a) “salaries and wages paid in the year” by the corporation does not include

salaries and wages paid to employees of a permanent establishment outside

Canada; and

(b) “taxable income” of the corporation is deemed to refer to the corporation’s

taxable income earned in Canada.

(2) Subsection (1) applies to taxation years that begin after March 20, 2013.

34. (1) Section 413.1 of the Regulations and the heading before it are

repealed.

(2) Subsection (1) applies to taxation years that begin after March 20, 2013.

35. (1) The portion of subsection 1102(16.1) of the Regulations before

paragraph (a) is replaced by the following:

(16.1) A taxpayer who acquires a property after March 18, 2007 and before 2016

that is manufacturing or processing machinery or equipment may (by letter attached

to the return of income of the taxpayer filed with the Minister in accordance with

section 150 of the Act for the taxation year in which the property is acquired) elect to

include the property in Class 29 in Schedule II if

(2) Subsection (1) is deemed to have come into force on January 1, 2012.

36. (1) Part LXXV of the Regulations is repealed.

(2) Subsection (1) applies in respect of missions initiated after September

2012.

37. (1) Section 7900 of the Regulations is replaced by the following:

7900. For the purposes of the definitions “excluded income” and “excluded

revenue” and “specified deposit” in subsection 95(2.5) of the Act, each of the

following is a prescribed financial institution:

(a) a member of the Canadian Payments Association; and

(b) a credit union that is a shareholder or member of a body corporate or

organization that is a central for the purposes of the Canadian Payments Act.

(2) Subsection (1) applies to taxation years that begin after March 20, 2013.

38. (1) The portion of the definition “Canadian assets” in section 8600 of the

Regulations after paragraph (a) is replaced by the following:

exceeds

(b) the investment allowance of the corporation for the year determined under

subsection 181.3(4) of the Act; (actif canadien)

(2) Subsection (1) applies to taxation years that begin after March 20, 2013.

39. (1) Paragraph 8603(a) of the English version of the Regulations is

replaced by the following:

(a) “Canadian assets” of a corporation that is a financial institution (as defined in

subsection 190(1) of the Act) at any time in a taxation year means, in respect of

that year, the amount that would be determined under the definition “Canadian

assets” in section 8600 in respect of the corporation for the year if the reference

in that definition to “subsection 181(1)” were read as a reference to “subsection

190(1)” and paragraph (b) of that definition were read as follows:

“(b) the total determined under section 190.14 of the Act in respect of the

corporation’s investments for the year in financial institutions related to it;”;

(2) Subsection (1) applies to taxation years that begin after March 20, 2013.

40. (1) The portion of subparagraph (c)(iii) of Class 29 in Schedule II to the

Regulations before clause (A) is replaced by the following:

(iii) after March 18, 2007 and before 2016 if the property is machinery, or

equipment,

(2) Subsection (1) is deemed to have come into force on March 21, 2013.

COORDINATING AMENDMENTS

Bill C-48

41. (1) Subsections (2) to (4) apply if Bill C-48, introduced in the 1st session

of the 41st Parliament and entitled the Technical Tax Amendments Act, 2012

(in this section referred to as the “other Act”), receives royal assent.

(2) If this Act receives royal assent before the other Act, then on the day on

which the other Act receives royal assent, subparagraph 82(1)(b)(i) of the

Income Tax Act, as enacted by subsection 218(2) of the other Act, is replaced

by the following:

(i) 18% of the amount determined under paragraph (a) in respect of the

taxpayer for the taxation year, and

(3) If this Act receives royal assent on the same day as the other Act, then

the other Act is deemed to have received royal assent before this Act.

(4) Subsection (2) comes into force or is deemed to have come into force on

January 1, 2014 and applies to dividends paid after 2013.

PART 2 MEASURES RELATING TO SALES AND EXCISE TAXES AND EXCISE DUTIES

R.S., C. E-15 EXCISE TAX ACT

R.S., c. 7 (2nd Supp.), s. 49(1)

42. (1) The portion of subsection 102.1(2) of the Excise Tax Act before

paragraph (a) is replaced by the following:

Authorization order

(2) A judge of the Federal Court may, on application by the Minister and subject

to any conditions that the judge considers appropriate, authorize the Minister to

serve a notice under subsection 99(1) with respect to an unnamed person or a group

of unnamed persons if the judge is satisfied by information on oath that

R.S., c. 7 (2nd Supp.), s. 49(1); 1996, c. 21, s. 63(2)

(2) Subsections 102.1(3) to (6) of the Act are repealed.

(3) Subsections (1) and (2) apply to applications made by the Minister of

National Revenue after the day on which this Act receives royal assent.

43. (1) The Act is amended by adding the following after section 156:

Meaning of “selected qualifying employer”

157. (1) For the purposes of this section, “selected qualifying employer” has the

meaning assigned by subsection 172.1(9).

Election for nil consideration

(2) For the purposes of this Part, if a participating employer of a pension plan

elects jointly with a pension entity of the pension plan, every taxable supply made by

the participating employer to the pension entity at a time when the election is in effect

is deemed to have been made for no consideration.

Non-application

(3) Subsection (2) does not apply to

(a) a supply deemed under section 172.1 to have been made;

(b) a supply of property or a service that is not acquired by a pension entity of a

pension plan for consumption, use or supply by the pension entity in the course of

pension activities (as defined in subsection 172.1(1)) in respect of the pension

plan;

entity of the pension plan of all or part of property or a service if, at the time the

participating employer acquires the property or service, the participating employer

is a selected qualifying employer of the pension plan;

(d) a supply made by a participating employer of a pension plan to a pension

entity of the pension plan of property or a service if, at the time the participating

employer consumes or uses an employer resource (as defined in subsection

172.1(1)) of the participating employer for the purpose of making the supply, the

participating employer is a selected qualifying employer of the pension plan; or

(e) a supply made in prescribed circumstances or made by a prescribed person.

Joint revocation

(4) The persons that have jointly made an election under subsection (2) may

jointly revoke the election.

Form of election and revocation

(5) An election under subsection (2) and a revocation of an election under

subsection (4) must

(a) be made in prescribed form containing prescribed information;

(b) specify the day on which the election or the revocation is to become effective,

which must be the first day of a fiscal year of the participating employer; and

on or before the day that is the day on which the election or the revocation is to

become effective or any later day that the Minister may allow.

Cessation

(6) An election under subsection (2) made jointly by a participating employer of a

pension plan and a pension entity of the pension plan ceases to have effect on the

earliest of

(a) the day on which the participating employer ceases to be a participating

employer of the pension plan,

(b) the day on which the pension entity ceases to be a pension entity of the

pension plan,

employer and the pension entity becomes effective, and

(d) the day specified in a notice of revocation of the election sent to the

participating employer under subsection (9).

Notice of intent

(7) If an election made jointly under subsection (2) by a participating employer of

a pension plan and a pension entity of the pension plan is in effect at any time in a

fiscal year of the participating employer and if the participating employer fails to

account for, as and when required under this Part, any tax deemed to have been

collected by the participating employer on the last day of the fiscal year under

subsection 172.1(5) or (6) in respect of the pension plan, the Minister may send a

notice in writing (in this section referred to as a “notice of intent”) to the participating

employer and to the pension entity that the Minister proposes to revoke the election

as of the first day of the fiscal year.

Representations to Minister

(8) Upon receipt of a notice of intent, a participating employer must establish to

the satisfaction of the Minister that the participating employer did not fail to account

for, as and when required under this Part, tax deemed to have been collected by the

participating employer under subsection 172.1(5) or (6) in respect of the pension

plan.

Notice of revocation

(9) If, after 60 days after the day on which the notice of intent was sent by the

Minister to the participating employer, the Minister is not satisfied that the

participating employer did not fail to account for, as and when required under this

Part, tax deemed to have been collected by the participating employer on the last

day of a particular fiscal year under subsection 172.1(5) or (6) in respect of the

pension plan, the Minister may send a notice in writing (in this section referred to as

a “notice of revocation”) to the participating employer and to the pension entity of the

pension plan with which the participating employer made the election that the

election is revoked as of the day specified in the notice of revocation, and that day is

not to be earlier than the day specified in the notice of intent and must be the first

day of any particular fiscal year.

Revocation — effect

(10) For the purposes of this Part, an election under subsection (2) that has been

revoked by the Minister under subsection (9) is deemed never to have been in effect

on any day on or after the day specified in the notice of revocation.

(2) Subsection (1) applies to supplies made after March 21, 2013.

44. (1) Subsection 172.1(1) of the Act is amended by adding the following in

alphabetical order:

“specified supply”

« fourniture déterminée »

“specified supply” of a participating employer of a pension plan to the pension plan

means

(a) a taxable supply deemed to have been made under subsection (5) of all or

part of property or a service that the participating employer acquired for the

purpose of making a supply of all or part of the property or service to a pension

entity of the pension plan;

(b) a taxable supply deemed to have been made under subsection (6) of an

employer resource of the participating employer that the participating employer

consumed or used for the purpose of making a supply of property or a service to

a pension entity of the pension plan; or

employer resource of the participating employer that the participating employer

consumed or used in the course of pension activities in respect of the pension

plan.

2010, c. 12, s. 58(1)

(2) The portion of subsection 172.1(5) of the Act before paragraph (b) is

replaced by the following:

Acquisition of property or service for supply

(5) If a person is both a registrant and a participating employer of a pension plan

at any time in a particular fiscal year of the person and is not a selected qualifying

employer of the pension plan at that time, if the person acquires at that time property

or a service (in this subsection referred to as the “specified resource”) for the

purpose of making a supply of all or part of the specified resource to a pension entity

of the pension plan for consumption, use or supply by the pension entity in the

course of pension activities in respect of the pension plan and if the specified

resource is not an excluded resource of the person in respect of the pension plan,

the following rules apply:

(a) for the purposes of this Part, the person is deemed to have made a taxable

supply of the specified resource or part on the last day of the particular fiscal

year;

2010, c. 12, s. 58(1)

(3) The portion of subsection 172.1(6) of the Act before paragraph (a) is

replaced by the following:

Consumption or use of employer resource for supply

(6) If a person is both a registrant and a participating employer of a pension plan

at any time in a particular fiscal year of the person and is not a selected qualifying

employer of the pension plan at that time, if the person consumes or uses at that

time an employer resource of the person for the purpose of making a supply of

property or a service (in this subsection referred to as the “pension supply”) to a

pension entity of the pension plan for consumption, use or supply by the pension

entity in the course of pension activities in respect of the pension plan and if the

employer resource is not an excluded resource of the person in respect of the

pension plan, the following rules apply:

2010, c. 12, s. 58(1)

(4) The portion of subsection 172.1(7) of the Act before paragraph (a) is

replaced by the following:

Consumption or use of employer resource otherwise than for supply

(7) If a person is both a registrant and a participating employer of a pension plan

at any time in a particular fiscal year of the person and is not a qualifying employer of

the pension plan at that time, if the person consumes or uses at that time an

employer resource of the person in the course of pension activities in respect of the

pension plan, if the employer resource is not an excluded resource of the person in

respect of the pension plan and if subsection (6) does not apply to that consumption

or use, the following rules apply:

(5) Section 172.1 of the Act is amended by adding the following after

subsection (8):

Selected qualifying employer

(9) For the purposes of this section, a particular participating employer of a

pension plan is a selected qualifying employer of the pension plan for a particular

fiscal year of the particular participating employer if no election under subsection 157

(2) made jointly by the particular participating employer and a pension entity of the

pension plan is in effect in the particular fiscal year, if the particular participating

employer did not become a participating employer of the pension plan in the

particular fiscal year, if the amount determined for A in the following formula is less

than $5,000 and if the amount (expressed as a percentage) determined by the

following formula is less than 10%:

A/(B – C)

where

is the total of all amounts, each of which is

(a) an amount of tax deemed to have been collected under subsection (5), (6) or

(7) by the particular participating employer in respect of a specified supply of the

particular participating employer to the pension plan during the fiscal year (in this

subsection referred to as the “preceding fiscal year”) of the particular participating

employer preceding the particular fiscal year less the amount, if any, determined

for B under paragraph (5)(c), (6)(c) or (7)(c), whichever is applicable, in

determining that amount of tax,

(b) if the particular participating employer is a selected qualifying employer of the

pension plan for the preceding fiscal year, an amount of tax that would have been

deemed to have been collected under subsection (5) or (6) by the particular

participating employer during the preceding fiscal year in respect of a supply that

would have been deemed to have been made under that subsection and that

would be a specified supply of the particular participating employer to the pension

plan, if the particular participating employer were not a selected qualifying

employer, less the amount, if any, that would be determined for B under

paragraph (5)(c) or (6)(c), whichever is applicable, in determining that amount of

tax,

plan for the preceding fiscal year, an amount of tax that would have been deemed

to have been collected under subsection (7) by the particular participating

employer during the preceding fiscal year in respect of a supply that would have

been deemed to have been made under that subsection and that would be a

specified supply of the particular participating employer to the pension plan, if the

particular participating employer were not a qualifying employer, less the amount,

if any, that would be determined for B under paragraph (7)(c) in determining that

amount of tax,

(d) an amount of tax deemed to have been collected under subsection (5), (6) or

(7) by another participating employer of the pension plan in respect of a specified

supply of the other participating employer to the pension plan during a fiscal year

of the other participating employer that ends in the preceding fiscal year, provided

that the other participating employer is related at any time in the preceding fiscal

year to the particular participating employer, less the amount, if any, determined

for B under paragraph (5)(c), (6)(c) or (7)(c), whichever is applicable, in

determining that amount of tax,

(e) an amount of tax that would have been deemed to have been collected under

subsection (5) or (6) by another participating employer of the pension plan during

a fiscal year of the other participating employer that ends in the preceding fiscal

year in respect of a supply that would have been deemed to have been made

under that subsection and that would be a specified supply of the other

participating employer to the pension plan if the other participating employer were

not a selected qualifying employer, provided that the other participating employer

is related at any time in the preceding fiscal year to the particular participating

employer and is a selected qualifying employer of the pension plan for that fiscal

year of the other participating employer, less the amount, if any, that would be

determined for B under paragraph (5)(c) or (6)(c), whichever is applicable, in

determining that amount of tax, or

(f) an amount of tax that would have been deemed to have been collected under

subsection (7) by another participating employer of the pension plan during a

fiscal year of the other participating employer that ends in the preceding fiscal

year in respect of a supply that would have been deemed to have been made

under that subsection and that would be a specified supply of the other

participating employer to the pension plan if the other participating employer were

not a qualifying employer, provided that the other participating employer is related

at any time in the preceding fiscal year to the particular participating employer

and is a qualifying employer of the pension plan for that fiscal year of the other

participating employer, less the amount, if any, that would be determined for B

under paragraph (7)(c) in determining that amount of tax;

is the total of all amounts, each of which is

(a) an amount of tax under subsection 165(1) or section 212, 218 or 218.01 paid

by a pension entity of the pension plan during a fiscal year of the pension entity

that ends in the preceding fiscal year but only to the extent that the amount is an

eligible amount (as defined in subsection 261.01(1)) for a claim period (as defined

in that subsection) of the pension entity,

(b) an amount of tax deemed to have been collected under subsection (5), (6) or

(7) by a participating employer of the pension plan, including the particular

participating employer, during a fiscal year of the participating employer that ends

in the preceding fiscal year in respect of a specified supply of the participating

employer to the pension plan less the amount, if any, determined for B under

paragraph (5)(c), (6)(c) or (7)(c), whichever is applicable, in determining that

amount of tax, or

pension plan under paragraph 232.01(5)(b) or 232.02(4)(b) for a reporting period

of the pension entity that ends in the preceding fiscal year as a consequence of

the issuance of a tax adjustment note under subsection 232.01(3) or 232.02(2)

or, if less, the amount that would have been required to be so added if the

pension entity were a selected listed financial institution; and

is the total of all amounts, each of which is

(a) the federal component amount of a tax adjustment note issued under

subsection 232.01(3) or 232.02(2) by a participating employer of the pension

plan, including the particular participating employer, to a pension entity of the

pension plan during a fiscal year of the pension entity that ends in the preceding

fiscal year, or

(b) a recoverable amount (as defined in subsection 261.01(1)) of a pension entity

of the pension plan in respect of a claim period ending in a fiscal year of the

pension entity that ends in the preceding fiscal year but only to the extent that the

recoverable amount is in respect of an amount determined for A under paragraph

(5)(c), (6)(c) or (7)(c), whichever is applicable, in determining an amount of tax

deemed to have been paid by the pension entity under this section for the

purposes of section 261.01.

Qualifying employer

(10) For the purposes of this section, a particular participating employer of a

pension plan is a qualifying employer of the pension plan for a particular fiscal year

of the particular participating employer if the particular participating employer did not

become a participating employer of the pension plan in the particular fiscal year, if

the amount determined for A in the following formula is less than $5,000 and if the

amount (expressed as a percentage) determined by the following formula is less

than 10%:

A/(B – C)

where

is the total of all amounts, each of which is

(a) an amount of tax deemed to have been collected under subsection (7) by the

particular participating employer in respect of a specified supply of the particular

participating employer to the pension plan during the fiscal year (in this

subsection referred to as the “preceding fiscal year”) of the particular participating

employer preceding the particular fiscal year less the amount, if any, determined

for B under paragraph (7)(c) in determining that amount of tax,

(b) if the particular participating employer is a qualifying employer of the pension

plan for the preceding fiscal year, an amount of tax that would have been deemed

to have been collected under subsection (7) by the particular participating

employer during the preceding fiscal year in respect of a supply that would have

been deemed to have been made under that subsection and that would be a

specified supply of the particular participating employer to the pension plan, if the

particular participating employer were not a qualifying employer, less the amount,

if any, that would be determined for B under paragraph (7)(c) in determining that

amount of tax,

another participating employer of the pension plan in respect of a specified supply

of the other participating employer to the pension plan during a fiscal year of the

other participating employer that ends in the preceding fiscal year, provided that

the other participating employer is related at any time in the preceding fiscal year

to the particular participating employer, less the amount, if any, determined for B

under paragraph (7)(c) in determining that amount of tax, or

(d) an amount of tax that would have been deemed to have been collected under