C-59 2 41 62-63-64 Elizabeth II 2013-2014-2015

An Act to implement certain provisions of the budget tabled in Parliament on April 21, 2015 and other measures

Economic Action Plan 2015 Act, No. 1

Economic Action Plan 2015, No. 1 2015 6 23 36 2015 90769

SUMMARY

Part 1 implements income tax measures and related measures proposed or referenced in the April 21, 2015 budget. In particular, it

(

a) reduces the required minimum amount that must be withdrawn annually from a registered retirement income fund, a variable benefit money purchase registered pension plan or a pooled registered pension plan;

(

b) ensures that amounts received on account of the new critical injury benefit and the new family caregiver relief benefit under the Canadian Forces Members and Veterans Re-establishment and Compensation Act are exempt from income tax;

(

c) decreases the small business tax rate and makes consequential adjustments to the dividend gross-up factor and dividend tax credit;

(

d) increases the lifetime capital gains exemption to $1 million for qualified farm and fishing properties;

(

e) introduces the home accessibility tax credit;

(

f) extends, for one year, the mineral exploration tax credit for flow-through share investors;

(

g) extends, for five years, the tax deferral regime that applies to patronage dividends paid to members by an eligible agricultural cooperative in the form of eligible shares;

(

h) extends until the end of 2018 the temporary measure that allows certain family members to open a registered disability savings plan for an adult individual who might not be able to enter into a contract;

(

i) permits certain foreign charitable foundations to be registered as qualified donees;

(

j) increases the annual contribution limit for tax-free savings accounts to $10,000;

(

k) creates a new quarterly remitter category for certain small new employers; and

(

l) provides an accelerated capital cost allowance for investment in machinery and equipment used in manufacturing and processing.

Part 2 implements various measures for families.

Division 1 of

Part 2 implements the income tax measures announced on October 30, 2014. It amends the Income Tax Act to increase the maximum annual amounts deductible for child care expenses, to repeal the child tax credit and to introduce the family tax cut credit that is modified to include transferred education-related amounts in the calculation of that credit as announced in the April 21, 2015 budget.

Division 2 of

Part 2 amends the Universal Child Care Benefit Act to, effective January 1, 2015, enhance the universal child care benefit by providing $160 per month for children under six years of age and by providing a new benefit of $60 per month for children six years of age or older but under 18 years of age.

It also amends the Children’s Special Allowances Act to, effective January 1, 2015, increase the special allowance supplement for children under six years of age from $100 to $160 per month and introduce a special allowance supplement in the amount of $60 per month for children six years of age or older but under 18 years of age.

Part 3 enacts and amends several Acts in order to implement various measures.

Division 1 of

Part 3 enacts the Federal Balanced Budget Act . That Act provides for certain measures that are to apply in the case of a projected or recorded deficit. It also provides for the appearance of the Minister of Finance before a House of Commons committee to explain the reasons for the deficit and present a plan for a return to balanced budgets.

Division 2 of

Part 3 enacts the Prevention of Terrorist Travel Act in order to establish a mechanism to protect information in respect of judicial proceedings in relation to decisions made by the designated minister under the Canadian Passport Order to prevent the commission of a terrorism offence or for the purposes of the national security of Canada or a foreign country or state. It also makes a related amendment to the Canada Evidence Act .

Division 3 of

Part 3 amends the Industrial Design Act , the Patent Act and the Trade-marks Act to, among other things, provide for extensions of time limits in unforeseen circumstances and provide the authority to make regulations respecting the correction of obvious errors. It also amends the Patent Act and the Trade-marks Act to protect communications between patent or trade-mark agents and their clients in the same way as communications that are subject to solicitor-client privilege.

Division 4 of

Part 3 amends the Canada Labour Code to increase the maximum amount of compassionate care leave to 28 weeks and to extend to 52 weeks the period within which that leave may be taken. It also amends the Employment Insurance Act to, among other things, increase to 26 the maximum number of weeks of compassionate care benefits and to extend to 52 weeks the period within which those benefits may be paid.

Division 5 of

Part 3 amends the Copyright Act to extend the term of copyright protection for a published sound recording and a performer’s performance fixed in a published sound recording from 50 years to 70 years after publication. However, the term is capped at 100 years after the first fixation of, respectively, the sound recording or the performer’s performance in a sound recording.

Division 6 of

Part 3 amends the Export Development Act to add a development finance function to the current mandate of Export Development Canada (EDC), which will enable EDC to provide development financing and other forms of development support in a manner consistent with Canada’s international development priorities. The amendments also provide that the Minister for International Trade is to consult the Minister for International Development on matters related to EDC’s development finance function.

Division 7 of

Part 3 amends the Canada Labour Code in order to, among other things, provide that Parts II and III of that Act apply to persons who are not employees but who perform for employers activities whose primary purpose is to enable those persons to acquire knowledge or experience, set out circumstances in which

Part III of that Act does not apply to those persons and provide for regulations to be made to apply and adapt any provision of that Part to them.

Division 8 of

Part 3 amends the Members of Parliament Retiring Allowances Act to, among other things, provide that the Chief Actuary is not permitted to distinguish between members of either House of Parliament when fixing contribution rates under that Act.

Division 9 of

Part 3 amends the National Energy Board Act to extend the maximum duration of licences for the exportation of natural gas that are issued under that Act.

Division 10 of

Part 3 amends the Parliament of Canada Act to establish an office to be called the Parliamentary Protective Service, which is to be responsible for all matters with respect to physical security throughout the parliamentary precinct and Parliament Hill and is to be under the responsibility of the Speaker of the Senate and the Speaker of the House of Commons. The Division provides that the Speakers of the two Houses of Parliament and the Minister of Public Safety and Emergency Preparedness must enter into an arrangement to have the Royal Canadian Mounted Police provide physical security services throughout that precinct and Parliament Hill. It also makes consequential amendments to other Acts.

Division 11 of

Part 3 amends the definition insured participant in the Employment Insurance Act to extend eligibility for assistance under employment benefits under

Part II of that Act, while providing that the definition as it reads before that Division comes into force may continue to apply for the purposes of an agreement with a government under

section 63 of that Act that is entered into after that Division comes into force. It also contains transitional provisions and makes consequential amendments.

Division 12 of

Part 3 amends the Canada Small Business Financing Act to modify the definition small business in order to increase the maximum amount of estimated gross annual revenue referred to in that definition. It also amends provisions of that Act that relate to eligibility criteria for borrowers for the purpose of financing the purchase or improvement of real property or immovables, in order to increase the maximum outstanding loan amount.

Division 13 of

Part 3 amends the Personal Information Protection and Electronic Documents Act to extend the application of that Act to organizations set out in

Schedule 4 in respect of personal information described in that Schedule.

Division 14 of

Part 3 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to require the Financial Transactions and Reports Analysis Centre of Canada to disclose designated information to provincial securities regulators in certain circumstances.

Division 15 of

Part 3 amends the Immigration and Refugee Protection Act to

(

a) clarify and expand the application of certain provisions requiring the collection of biometric information so that those requirements apply not only to applications for a temporary resident visa, work permit or study permit but may also apply to other types of applications, claims and requests made under that Act that are specified in the regulations; and

(

b) authorize the Minister of Citizenship and Immigration and the Minister of Public Safety and Emergency Preparedness to administer that Act using electronic means, including by allowing the making of an automated decision and by requiring the making of an application, request or claim, the submitting of documents or the providing of information, using electronic means.

Division 16 of

Part 3 amends the First Nations Fiscal Management Act to accelerate and streamline participation in the scheme established under that Act, reduce the regulatory burden on participating first nations and strengthen the confidence of capital markets and investors in respect of that scheme.

Division 17 of

Part 3 amends the Canadian Forces Members and Veterans Re-establishment and Compensation Act to

(

a) add a purpose statement to that Act;

(

b) improve the transition process of Canadian Forces members and veterans to civilian life by allowing the Minister of Veterans Affairs to make decisions in respect of applications made by those members for services, assistance and compensation under that Act before their release from the Canadian Forces and to provide members and veterans with information and guidance before and after their release;

(

c) establish the retirement income security benefit to provide eligible veterans and survivors with a continued financial benefit after the age of 65 years;

(

d) establish the critical injury benefit to provide eligible Canadian Forces members and veterans with lump-sum compensation for severe, sudden and traumatic injuries or acute diseases that are service related, regardless of whether they result in permanent disability; and

(

e) establish the family caregiver relief benefit to provide eligible veterans who require a high level of ongoing care from an informal caregiver with an annual grant to recognize that caregiver’s support.

The Division also amends the Veterans Review and Appeal Board Act as a consequence of the establishment of the critical injury benefit.

Division 18 of

Part 3 amends the Ending the Long-gun Registry Act to, among other things, provide that the Access to Information Act and the Privacy Act do not apply with respect to records and copies of records that are to be destroyed in accordance with the Ending the Long-gun Registry Act . The non-application of the Access to Information Act and the Privacy Act is retroactive to October 25, 2011, the day on which the Ending the Long-gun Registry Act was introduced into Parliament.

Division 19 of

Part 3 amends the Trust and Loan Companies Act , the Bank Act , the Insurance Companies Act and the Cooperative Credit Associations Act to modernize, clarify and enhance the protection of prescribed supervisory information that relates to federally regulated financial institutions.

Division 20 of

Part 3 authorizes the Treasury Board to establish and modify, despite the Public Service Labour Relations Act , terms and conditions of employment related to the sick leave of employees who are employed in the core public administration.

It also authorizes the Treasury Board to establish and modify, despite that Act, a short-term disability program, and it requires the Treasury Board to establish a committee to make joint recommendations regarding any modifications to that program.

Finally, it authorizes the Treasury Board to modify, despite that Act, the existing public service long-term disability programs in respect of the period during which employees are not entitled to receive benefits.

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

This Act may be cited as the Economic Action Plan 2015 Act, No. 1 .

PART 1

AMENDMENTS TO THE INCOME TAX ACT AND TO RELATED LEGISLATION

R.S., c. 1 (5th Supp.)

Income Tax Act

The Income Tax Act is amended by adding the following after

section 60.021:

Additions to clause 60( l )(v)(B.2) for 2015

60.022

(1) In determining the amount that may be deducted because of paragraph 60(

l) in computing a taxpayer’s income for the 2015 taxation year, clause 60( l )(v)(B.2) is to be read as follows:

(B.2)

the total of all amounts each of which is

(

I) the taxpayer’s eligible amount (within the meaning of subsection 146.3(6.11)) for the year in respect of a registered retirement income fund,

(II)

the taxpayer’s eligible RRIF withdrawal amount (within the meaning of subsection 60.022(2)) for the year in respect of a RRIF,

(III)

the taxpayer’s eligible variable benefit withdrawal amount (within the meaning of subsection 60.022(3)) for the year in respect of an account of the taxpayer under a money purchase provision of a registered pension plan, or

(IV)

the taxpayer’s eligible PRPP withdrawal amount (within the meaning of subsection 60.022(4)) for the year in respect of an account of the taxpayer under a PRPP,

Eligible RRIF withdrawal amount

(2) A taxpayer’s eligible RRIF withdrawal amount for the taxation year in respect of a RRIF under which the taxpayer is the annuitant at the beginning of the taxation year is the amount determined by the formula

A – B where A

is the lesser of

(

a) the total of all amounts included, because of subsection 146.3(5), in computing the taxpayer’s income for the taxation year in respect of amounts received out of or under the fund (other than an amount paid by direct transfer from the fund to another fund or to a registered retirement savings plan), and

(

b) the amount that would be the minimum amount under the fund for the 2015 taxation year if it were determined using the prescribed factors under subsection 7308(3) or (4), as the case may be, of the Income Tax Regulations as they read on December 31, 2014; and

is the minimum amount under the fund for the taxation year.

Eligible variable benefit withdrawal amount

(3) A taxpayer’s eligible variable benefit withdrawal amount for a taxation year in respect of an account of the taxpayer under a money purchase provision of a registered pension plan is the amount determined by the formula

A – B – C where A

is the lesser of

(

a) the total of all amounts each of which is the amount of a retirement benefit (other than a retirement benefit permissible under any of paragraphs 8506(1)(

a) to (

e) of the Income Tax Regulations ) paid from the plan in the taxation year in respect of the account and included, because of paragraph 56(1)( a ), in computing the taxpayer’s income for the taxation year, and

(

b) the amount that would be the minimum amount for the account for the 2015 taxation year if it were determined using the factor designated under subsection 7308(4) of the Income Tax Regulations as they read on December 31, 2014;

is the minimum amount for the account for the taxation year; and

is the total of all contributions made by the taxpayer under the provision and designated for the purposes of subsection 8506(12) of the Income Tax Regulations .

Eligible PRPP withdrawal amount

(4) A taxpayer’s eligible PRPP withdrawal amount for a taxation year in respect of an account of the taxpayer under a PRPP is the amount determined by the formula

A – B where A

is the lesser of

(

a) the total of all amounts each of which is the amount of a distribution made from the account in the taxation year and included, because of subsection 147.5(13), in computing the taxpayer’s income for the taxation year, and

(

b) the amount that would be the minimum amount for the account for the 2015 taxation year if it were determined using the factor designated under subsection 7308(4) of the Income Tax Regulations as they read on December 31, 2014, and

is the minimum amount for the account for the taxation year.

Expressions used in this section

(5) For the purposes of this section,

(

a) money purchase provision has the same meaning as in subsection 147.1(1);

(

b) retirement benefits has the same meaning as in subsection 8500(1) of the Income Tax Regulations ;

(

c) the minimum amount for an account of a taxpayer under a money purchase provision of a registered pension plan is the amount determined under subsection 8506(5) of the Income Tax Regulations ; and

(

d) the minimum amount for an account of a taxpayer under a PRPP is the amount that would be the minimum amount for the calendar year under subsection 8506(5) of the Income Tax Regulations if the taxpayer’s account were an account under a money purchase provision of a registered pension plan.

(1) Paragraph 81(1)( d.1 ) of the Act is replaced by the following:

Canadian Forces members and veterans amounts

( d.1 )

the total of all amounts received by the taxpayer in the year on account of a Canadian Forces income support benefit payable to the taxpayer under

Part 2 of the Canadian Forces Members and Veterans Re-establishment and Compensation Act , on account of a critical injury benefit, disability award, death benefit, clothing allowance or detention benefit payable to the taxpayer under

Part 3 of that Act or on account of a family caregiver relief benefit payable to the taxpayer under

Part 3.1 of that Act;

(2) Subsection (1) applies to the 2015 and subsequent taxation years.

(1) Subparagraph 82(1)( b )(

i) of the Act is replaced by the following:

(

i) the product of the amount determined under paragraph (

a) in respect of the taxpayer for the taxation year multiplied by

(

A) for the 2016 and 2017 taxation years, 17%,

(

B) for the 2018 taxation year, 16%, and

(

C) for taxation years after 2018, 15%, and

(2) Subsection (1) applies to the 2016 and subsequent taxation years.

(1) Section 104 of the Act is amended by adding the following after subsection (21.2):

Beneficiaries QFFP taxable capital gain

(21.21) If clause (21.2)( b )(ii)(

A) applies to deem, for the purposes of

section 110.6, the beneficiary under a trust to have a taxable capital gain (referred to in this subsection as the “QFFP taxable capital gain”) from a disposition of capital property that is qualified farm or fishing property of the beneficiary, for the beneficiary’s taxation year that ends on or after April 21, 2015, and in which the designation year of the trust ends, for the purposes of subsection 110.6(2.2), the beneficiary is, if the trust complies with the requirements of subsection (21.22), deemed to have a taxable capital gain from the disposition of qualified farm or fishing property of the beneficiary on or after April 21, 2015 equal to the amount determined by the formula

A × B/C where A

is the amount of the QFFP taxable capital gain;

is, if the designation year of the trust ends on or after April 21, 2015, the amount that would be determined in respect of the trust for the designation year under paragraph 3(

b) in respect of capital gains and capital losses if the only properties referred to in that paragraph were qualified farm or fishing properties of the trust that were disposed of by the trust on or after April 21, 2015; and

is, if the designation year of the trust ends on or after April 21, 2015, the amount that would be determined in respect of the trust for the designation year under paragraph 3(

b) in respect of capital gains and capital losses if the only properties referred to in that paragraph were qualified farm or fishing properties.

Trusts to designate amounts

(21.22) A trust shall determine and designate, in its return of income under this Part for a designation year of the trust, the amount that is determined under subsection (21.21) to be the beneficiary’s taxable capital gain from the disposition on or after April 21, 2015 of qualified farm or fishing property of the beneficiary.

(2) Subsection (1) applies in respect of taxation years that end after April 20, 2015.

(1) Subsection 108(1.1) of the Act is replaced by the following:

Credits — home renovation

(1.1) For the purpose of the definition testamentary trust in subsection (1), a contribution to a trust does not include a qualifying expenditure (within the meaning of

section 118.04 or 118.041) of a beneficiary under the trust.

(2) Subsection (1) applies to the 2016 and subsequent taxation years.

(1) Section 110.6 of the Act is amended by adding the following after subsection (2.1):

Additional deduction — qualified farm or fishing property

(2.2) In computing the taxable income for a taxation year of an individual (other than a trust) who was resident in Canada throughout the year and who disposed of qualified farm or fishing property in the year or a preceding taxation year and after April 20, 2015, there may be deducted an amount claimed by the individual that does not exceed the least of

(

a) the amount, if any, by which $500,000 exceeds the total of

(i)

$400,000 adjusted for each year after 2014 in the manner set out by

section 117.1, and

(ii)

the total of all amounts each of which is an amount deducted under this subsection in computing the individual’s taxable income for a preceding taxation year that ended after 2014,

(

b) the amount, if any, by which the individual’s cumulative gains limit at the end of the year exceeds the total of all amounts each of which is an amount deducted by the individual under subsection (2) or (2.1) in computing the individual’s taxable income for the year,

(

c) the amount, if any, by which the individual’s annual gains limit for the year exceeds the total of all amounts each of which is an amount deducted by the individual under subsection (2) or (2.1) in computing the individual’s taxable income for the year, and

(

d) the amount that would be determined in respect of the individual for the year under paragraph 3(

b) in respect of capital gains and capital losses if the only properties referred to in that paragraph were qualified farm or fishing properties disposed of by the individual after April 20, 2015.

Additional deduction — ordering rule

(2.3) Subsection (2.2) does not apply in computing the taxable income for a taxation year of an individual unless the individual has claimed the maximum amount that could be claimed under subsections (2) and (2.1) for the taxation year.

(2) Subsection 110.6(4) of the Act is replaced by the following:

Maximum capital gains deduction

(4) Notwithstanding subsections (2) and (2.1), the total amount that may be deducted under this

section in computing an individual’s income for a taxation year shall not exceed the total of the amount determined by the formula in paragraph (2)(

a) and the amount that may be deducted under subsection (2.2), in respect of the individual for the year.

(3) The portion of subsection 110.6(5) of the Act before paragraph (

a) is replaced by the following:

Deemed resident in Canada

(5) For the purposes of subsections (2) to (2.2), an individual is deemed to have been resident in Canada throughout a particular taxation year if

(4) The portion of subsection 110.6(6) of the Act before paragraph (

a) is replaced by the following:

Failure to report capital gain

(6) Notwithstanding subsections (2) to (2.2), no amount may be deducted under this

section in respect of a capital gain of an individual for a particular taxation year in computing the individual’s taxable income for the particular taxation year or any subsequent year, if

(5) The portion of subsection 110.6(7) of the Act before paragraph (

a) is replaced by the following:

Deduction not permitted

(7) Notwithstanding subsections (2) to (2.2), no amount may be deducted under this

section in computing an individual’s taxable income for a taxation year in respect of a capital gain of the individual for the taxation year if the capital gain is from a disposition of property which disposition is part of a series of transactions or events

(6) Subsection 110.6(8) of the Act is replaced by the following:

Deduction not permitted

(8) Notwithstanding subsections (2) to (2.2), if an individual has a capital gain for a taxation year from the disposition of a property and it can reasonably be concluded, having regard to all the circumstances, that a significant part of the capital gain is attributable to the fact that dividends were not paid on a share (other than a prescribed share) or that dividends paid on such a share in the taxation year or in any preceding taxation year were less than 90% of the average annual rate of return on that share for that year, no amount in respect of that capital gain shall be deducted under this

section in computing the individual’s taxable income for the year.

(7) Subsections (1) to (6) apply to taxation years that end after April 20, 2015.

(1) The Act is amended by adding the following after

section 118.04:

Definitions

118.041

(1) The following

definitions apply in this section.

eligible dwelling

logement admissible

eligible dwelling of an individual, at any time in a taxation year, means a housing unit (including the land subjacent to the housing unit and the immediately contiguous land, but not including the portion of that land that exceeds the greater of ½ hectare and the portion of that land that the individual establishes is necessary for the use and enjoyment of the housing unit as a residence) located in Canada if

(

a) the individual (or a trust under which the individual is a beneficiary) owns — whether jointly with another person or otherwise — at that time, the housing unit or a share of the capital stock of a cooperative housing corporation acquired for the sole purpose of acquiring the right to inhabit the housing unit owned by the corporation; and

(

b) the housing unit is ordinarily inhabited, or is reasonably expected to be ordinarily inhabited, at any time in the taxation year

(

i) by the individual, if the individual is a qualifying individual, or

(ii)

by the individual and a qualifying individual, if

(

A) the individual is an eligible individual in respect of the qualifying individual, and

(

B) the qualifying individual does not, throughout the taxation year, own — whether jointly with another person or otherwise — and ordinarily inhabit another housing unit in Canada.

eligible individual

particulier admissible

eligible individual , in respect of a qualifying individual for a taxation year, means

(

a) an individual who is the qualifying individual’s spouse or common-law partner in the year;

(

b) except if paragraph (

c) applies, an individual who is entitled to deduct an amount under subsection 118.3(2) for the year in respect of the qualifying individual or would be if no amount was claimed for the year by the qualifying individual under subsection 118.3(1) or by the qualifying individual’s spouse or common-law partner under

section 118.8; or

(

c) in the case of a qualifying individual who has attained the age of 65 before the end of the year, an individual who

(

i) claimed for the year a deduction under subsection 118(1) in respect of the qualifying individual because of

(

A) paragraph (

b) of the description of B in that subsection, or

(

B) paragraph ( c.1 ) or (

d) of the description of B in that subsection where the qualifying individual is a parent, grandparent, child, grandchild, brother, sister, aunt, uncle, nephew or niece of the individual, or of the individual’s spouse or common-law partner, or

(ii)

could have claimed for the year a deduction referred to in subparagraph (

i) in respect of the qualifying individual if

(

A) the qualifying individual had no income for the year,

(

B) in the case of a deduction referred to in clause (i)(A), the individual were not married and not in a common-law partnership, and

(

C) in the case of a deduction under subsection 118(1) because of paragraph (

d) of the description of B in that subsection in respect of a qualifying individual who is a dependant (within the meaning of subsection 118(6)) of the individual, the qualifying individual was dependent on the individual because of mental or physical infirmity.

individual

particulier

individual does not include a trust.

qualifying expenditure

dépense admissible

qualifying expenditure of an individual means an outlay or expense that is made or incurred, during a taxation year, that is directly attributable to a qualifying renovation — of an eligible dwelling of a qualifying individual or an eligible individual in respect of a qualifying individual — and that is the cost of goods acquired or services received during the year and includes an outlay or expense for permits required for, or for the rental of equipment used in the course of, the qualifying renovation, but does not include an outlay or expense

(

a) to acquire a property that can be used independently of the qualifying renovation;

(

b) that is the cost of annual, recurring or routine repair or maintenance;

(

c) to acquire a household appliance;

(

d) to acquire an electronic home-entertainment device;

(

e) that is the cost of housekeeping, security monitoring, gardening, outdoor maintenance or similar services;

(

f) for financing costs in respect of the qualifying renovation;

(

g) made or incurred primarily for the purpose of increasing or maintaining the value of the eligible dwelling;

(

h) made or incurred for the purpose of gaining or producing income from a business or property;

(

i) in respect of goods or services provided by a person not dealing at arm’s length with the qualifying individual or the eligible individual, unless the person is registered for the purposes of

Part IX of the Excise Tax Act ; or

(

j) to the extent that the outlay or expense can reasonably be considered to have been reimbursed, otherwise than as assistance from the federal or a provincial government including a grant, subsidy, forgivable loan or a deduction from tax.

qualifying individual

particulier déterminé

qualifying individual , in respect of a taxation year, means an individual

(

a) who has attained the age of 65 years before the end of the taxation year; or

(

b) in respect of whom an amount is deductible, or would be deductible if this Act were read without reference to paragraph 118.3(1)( c ), under

section 118.3 in computing a taxpayer’s tax payable under this Part for the taxation year.

qualifying renovation

travaux de rénovation admissibles

qualifying renovation means a renovation or alteration of an eligible dwelling of a qualifying individual or an eligible individual in respect of a qualifying individual that

(

a) is of an enduring nature and integral to the eligible dwelling; and

(

b) is undertaken to

(

i) enable the qualifying individual to gain access to, or to be mobile or functional within, the eligible dwelling, or

(ii)

reduce the risk of harm to the qualifying individual within the eligible dwelling or in gaining access to the dwelling.

Qualifying expenditure rules

(2) For the purpose of this section,

(

a) a qualifying expenditure in respect of an eligible dwelling of a particular individual — who is a qualifying individual or an eligible individual in respect of a qualifying individual — includes an outlay or expense made or incurred by a cooperative housing corporation, a condominium corporation (or, for civil law, a syndicate of co-owners) or a similar entity (in this paragraph referred to as the “corporation”), in respect of a property that is owned, administered or managed by that corporation and that includes the eligible dwelling, to the extent of the share of that outlay or expense that is reasonably attributable to the eligible dwelling, if

(

i) the outlay or expense would be a qualifying expenditure of the corporation if the corporation were an individual and the property were an eligible dwelling of that individual, and

(ii)

the corporation has notified, in writing, either the particular individual or, if the particular individual is an eligible individual in respect of a qualifying individual, the qualifying individual, of the share of the outlay or expense that is attributable to the eligible dwelling; and

(

b) a qualifying expenditure in respect of an eligible dwelling of a particular individual — who is a qualifying individual or an eligible individual in respect of a qualifying individual — includes an outlay or expense made or incurred by a trust, in respect of a property owned by the trust that includes the eligible dwelling, to the extent of the share of that outlay or expense that is reasonably attributable to the eligible dwelling, having regard to the amount of the outlays or expenses made or incurred in respect of the eligible dwelling (including, for this purpose, common areas relevant to more than one eligible dwelling), if

(

i) the outlay or expense would be a qualifying expenditure of the trust if the trust were an individual and the property were an eligible dwelling of that individual, and

(ii)

the trust has notified, in writing, either the particular individual or, if the particular individual is an eligible individual in respect of a qualifying individual, the qualifying individual, of the share of the outlay or expense that is attributable to the eligible dwelling.

Home accessibility tax credit

(3) For the purpose of computing the tax payable under this Part by a qualifying individual or an eligible individual, in respect of an eligible dwelling for a taxation year, there may be deducted the amount determined by the formula

A × B where A

is the appropriate percentage for the taxation year; and

is the lesser of

( a )

$10,000, and

(

b) the total of all amounts, each of which is a qualifying expenditure of the individual in respect of the eligible dwelling for the taxation year.

Interaction with medical expense credit

(4) Despite paragraph 248(28)( b ), an amount may be included in determining both an amount under subsection (3) and under

section 118.2 if those amounts otherwise qualify to be included for the purposes of those provisions.

Limits

(5) For the purpose of this section,

(

a) a maximum of $10,000 of qualifying expenditures for a taxation year in respect of a qualifying individual can be claimed under subsection (3) by the qualifying individual and all eligible individuals in respect of the qualifying individual;

(

b) if there is more than one qualifying individual in respect of an eligible dwelling, a maximum of $10,000 of qualifying expenditures for a taxation year in respect of the eligible dwelling can be claimed under subsection (3) by the qualifying individuals and all eligible individuals in respect of the qualifying individuals; and

(

c) if more than one individual is entitled to a deduction under subsection (3) for a taxation year in respect of the same qualifying individual or the same eligible dwelling and the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions.

Effect of bankruptcy

(6) For the purpose of subsection (5), if an individual becomes bankrupt in a particular calendar year, despite subsection 128(2), any reference to the taxation year of the individual is deemed to be a reference to the particular calendar year.

In the event of death and bankruptcy

(7) For the purpose of this section,

(

a) if an individual dies during a calendar year and would have attained 65 years of age if the individual were alive at the end of the year, the individual is deemed to have attained 65 years of age at the beginning of the year;

(

b) if an individual becomes a qualifying individual during a calendar year and becomes bankrupt in that year, the individual is deemed to be a qualifying individual at the beginning of that year; and

(

c) if an individual becomes a qualifying individual during a calendar year and an eligible individual in respect of the qualifying individual becomes bankrupt in that year, the individual is deemed to be a qualifying individual at the beginning of the year.

(2) Subsection (1) applies to the 2016 and subsequent taxation years.

(1) Section 118.92 of the Act, as enacted by subsection 31 (2), is replaced by the following:

Ordering of credits

118.92

In computing an individual’s tax payable under this Part, the following provisions shall be applied in the following order: subsections 118(1) and (2),

section 118.7, subsections 118(3) and (10) and sections 118.01, 118.02, 118.031, 118.04, 118.041, 118.05, 118.06, 118.07, 118.3, 118.61, 118.5, 118.6, 118.9, 118.8, 118.2, 118.1, 118.62, 119.1 and 121.

(2) Subsection (1) applies to the 2016 and subsequent taxation years.

(1) Paragraph 121(

a) of the Act is replaced by the following:

(

a) the product 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 multiplied by

(

i) for the 2016 taxation year, 21/29,

(ii)

for the 2017 and 2018 taxation years, 20/29, and

(iii)

for taxation years after 2018, 9/13; and

(2) Subsection (1) applies to the 2016 and subsequent taxation years.

(1) Paragraphs 125(1.1)(

a) and (

b) of the Act are replaced by the following:

(

a) that proportion of 17% that the number of days in the taxation year that are in 2015 is of the number of days in the taxation year,

(

b) that proportion of 17.5% that the number of days in the taxation year that are in 2016 is of the number of days in the taxation year,

(

c) that proportion of 18% that the number of days in the taxation year that are in 2017 is of the number of days in the taxation year,

(

d) that proportion of 18.5% that the number of days in the taxation year that are in 2018 is of the number of days in the taxation year, and

(

e) that proportion of 19% that the number of days in the taxation year that are after 2018 is of the number of days in the taxation year.

(2) Subsection (1) applies to the 2016 and subsequent taxation years.

(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 2015 and before 2017 (including, for greater certainty, an expense that is deemed by subsection 66(12.66) to be incurred before 2017) in conducting mining exploration activity from or above the surface of the earth for the purpose of determining the existence, location, extent or quality of a mineral resource described in paragraph (

a) or (

d) of the definition mineral resource in subsection 248(1),

(2) Paragraphs (

c) and (

d) of the definition flow-through mining expenditure in subsection 127(9) of the Act are replaced by the following:

(

c) an amount in respect of which is renounced in accordance with subsection 66(12.6) by the corporation to the taxpayer (or a partnership of which the taxpayer is a member) under an agreement described in that subsection and made after March 2015 and before April 2016, 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 2015 and before April 2016;

(3) Subsections (1) and (2) apply to expenses renounced under a flow-through share agreement entered into after March 2015.

Paragraph (

a) of the definition tax deferred cooperative share in subsection 135.1(1) of the Act is replaced by the following:

(

a) issued, after 2005 and before 2021, by an agricultural cooperative corporation to a person or partnership that is at the time the share is issued an eligible member of the agricultural cooperative corporation, pursuant to an allocation in proportion to patronage;

(1) Paragraph 137(4.3)(

a) of the Act is replaced by the following:

(

a) the preferred-rate amount of a corporation at the end of a taxation year is determined by the formula

A + B/C where A

is its preferred-rate amount at the end of its immediately preceding taxation year,

is the amount deductible under

section 125 from the tax for the taxation year otherwise payable by it under this Part, and

is its small business deduction rate for the taxation year within the meaning of subsection 125(1.1);

(2) Subsection (1) applies to the 2016 and subsequent taxation years.

Section 146.3 of the Act is amended by adding the following after subsection (1.2):

Exceptions

(1.3) For the purposes of subsections (5.1) and 153(1) and the definition periodic pension payment in

section 5 of the Income Tax Conventions

Interpretation Act , the minimum amount under a retirement income fund for 2015 is the amount that would be the minimum amount under the fund for the year if it were determined using the prescribed factors under subsection 7308(3) or (4), as the case may be, of the Income Tax Regulations as they read on December 31, 2014.

Clause ( a )(ii)(B.1) of the definition disability savings plan in subsection 146.4(1) of the Act is replaced by the following:

(B.1)

if the arrangement is entered into before 2019, a qualifying family member in relation to the beneficiary who, at the time the arrangement is entered into, is a qualifying person in relation to the beneficiary,

Paragraph 147.5(3)(

b) of the Act is replaced by the following:

(

b) a contribution is made to the plan in respect of a member after the calendar year in which the member attains 71 years of age, other than an amount

(

i) described in subparagraph ( a )(iii), or

(ii)

if subsection 60.022(1) applies, described in any of subclauses 60( l )(v)(B.2)(II) to (IV) as read in that subsection;

(1) Subparagraph ( a )(

v) of the definition qualified donee in subsection 149.1(1) of the Act is replaced by the following:

(

v) a foreign charity that has applied to the Minister for registration under subsection (26),

(2) The portion of subsection 149.1(26) of the Act before subparagraph ( b )(

i) is replaced by the following:

Foreign charities

(26) For the purposes of subparagraph ( a )(

v) of the definition qualified donee in subsection (1), the Minister may register, in consultation with the Minister of Finance, a foreign charity for a 24-month period that includes the time at which Her Majesty in right of Canada has made a gift to the foreign charity, if

(

a) the foreign charity is not resident in Canada; and

(

b) the Minister is satisfied that the foreign charity is

(3) Subsections (1) and (2) apply to applications made on or after the day on which this Act receives royal assent.

The definition TFSA dollar limit in subsection 207.01(1) of the Act is replaced by the following:

TFSA dollar limit

plafond CÉLI

TFSA dollar limit for a calendar year means,

(

a) for 2009 to 2012, $5,000;

(

b) for 2013 and 2014, $5,500; and

(

c) for each year after 2014, $10,000.

C.R.C., c. 945

Income Tax Regulations

(1) Subsection 108(1) of the Income Tax Regulations is replaced by the following:

(1) Subject to subsections (1.1) to (1.13), amounts deducted or withheld in a month under subsection 153(1) of the Act shall be remitted to the Receiver General on or before the 15th day of the following month.

(2) Section 108 of the Regulations is amended by adding the following after subsection (1.12):

(1.13) If an employer is a new employer throughout a particular month in a particular calendar year, all amounts deducted or withheld from payments described in the definition remuneration in subsection 100(1) that are made by the employer in the month may be remitted to the Receiver General

(

a) in respect of such payments made in January, February and March of the particular calendar year, on or before the 15th day of April of the particular calendar year;

(

b) in respect of such payments made in April, May and June of the particular calendar year, on or before the 15th day of July of the particular calendar year;

(

c) in respect of such payments made in July, August and September of the particular calendar year, on or before the 15th day of October of the particular calendar year; and

(

d) in respect of such payments made in October, November and December of the particular calendar year, on or before the 15th day of January of the year following the particular calendar year.

(3) Section 108 of the Regulations is amended by adding the following after subsection (1.2):

(1.21) For the purposes of subsection (1.4), the monthly withholding amount, in respect of an employer for a month, is the total of all amounts each of which is an amount required to be remitted with respect to the month by the employer or, if the employer is a corporation, by each corporation associated with the corporation, under

( a )

subsection 153(1) of the Act and a similar provision of a law of a province which imposes a tax upon the income of individuals, if the province has entered into an agreement with the Minister of Finance for the collection of taxes payable to the province, in respect of payments described in the definition remuneration in subsection 100(1);

( b )

subsection 21(1) of the Canada Pension Plan ; or

( c )

subsection 82(1) of the Employment Insurance Act .

(4) Section 108 of the Regulations is amended by adding the following after subsection (1.3):

(1.4) For the purposes of subsection (1.13) an employer

(

a) becomes a new employer at the beginning of any month after 2015 in which the employer first becomes an employer; and

(

b) ceases to be a new employer at a specified time in a particular year, if in a particular month the employer does not meet any of the following conditions:

(

i) the monthly withholding amount in respect of the employer for the particular month is less than $1,000,

(ii)

throughout the 12-month period before that time, the employer has remitted, on or before the day on or before which the amounts were required to be remitted, all amounts each of which was required to be remitted under subsection 153(1) of the Act, subsection 21(1) of the Canada Pension Plan , subsection 82(1) of the Employment Insurance Act or

Part IX of the Excise Tax Act , and

(iii)

throughout the 12-month period before that time, the employer has filed all returns each of which was required to be filed under the Act or

Part IX of the Excise Tax Act on or before the day on or before which those returns were required to be filed under those Acts.

(1.41) For the purposes of subsection (1.4), the specified time is the end of

(

a) March of the particular year, if the particular month is January, February or March of that year;

(

b) June of the particular year, if the particular month is April, May or June of that year;

(

c) September of the particular year, if the particular month is July, August or September of that year; and

(

d) December of the particular year, if the particular month is October, November or December of that year.

(5) Subsections (1) to (4) apply in respect of amounts deducted or withheld after 2015.

Paragraph 1100(1)(

a) of the Regulations is amended by striking out “and” at the end of subparagraph (xxxvii), by adding “and” at the end of subparagraph (xxxviii) and by adding the following after subparagraph (xxxviii):

(xxxix)

of Class 53, 50 per cent,

Paragraph 4600(2)(

k) of the Regulations is replaced by the following:

(

k) a property included in Class 21, 24, 27, 29, 34, 39, 40, 43, 45, 46, 50, 52 or 53 in

Schedule II;

(1) The table to subsection 7308(3) of the Regulations is replaced by the following:

X Factor Under 72 1/(90 – X) 72 0.0540 73 0.0553 74 0.0567 75 0.0582 76 0.0598 77 0.0617 78 0.0636 79 0.0658 80 0.0682 81 0.0708 82 0.0738 83 0.0771 84 0.0808 85 0.0851 86 0.0899 87 0.0955 88 0.1021 89 0.1099 90 0.1192 91 0.1306 92 0.1449 93 0.1634 94 0.1879 95 or older 0.2000

(2) The table to subsection 7308(4) of the Regulations is replaced by the following:

Y Factor Under 71 1/(90 – Y) 71 0.0528 72 0.0540 73 0.0553 74 0.0567 75 0.0582 76 0.0598 77 0.0617 78 0.0636 79 0.0658 80 0.0682 81 0.0708 82 0.0738 83 0.0771 84 0.0808 85 0.0851 86 0.0899 87 0.0955 88 0.1021 89 0.1099 90 0.1192 91 0.1306 92 0.1449 93 0.1634 94 0.1879 95 or older 0.2000

(3) Subsections (1) and (2) apply to the 2015 and subsequent taxation years.

Section 8506 of the Regulations is amended by adding the following after subsection (10):

Recontribution for 2015

(11) If a contribution made by a member of a registered pension plan and credited to the member’s account under a money purchase provision of the plan complies with the conditions in subsection (12), the contribution

(

a) is deemed to have been made in accordance with the plan as registered;

(

b) is to be disregarded for the purposes of paragraph (2)( c.1 ); and

(

c) is deemed to be an excluded contribution for the purposes of paragraph 8301(4)( a ).

Conditions Referred to in Subsection (11)

(12) The conditions referred to in subsection (11) are as follows:

(

a) the contribution is made after December 31, 2014 and before March 1, 2016;

(

b) the contribution is designated for the purposes of this subsection in a manner acceptable to the Minister; and

(

c) the amount of the contribution does not exceed the amount determined by the formula

A – B – C

where

is the lesser of

(

i) the total of all amounts each of which is the amount of a retirement benefit (other than a retirement benefit permissible under any of paragraphs (1)(

a) to ( e )) paid from the plan in 2015 in respect of the account and included, because of paragraph 56(1)(

a) of the Act, in computing the taxpayer’s income for the taxation year, and

(ii)

the amount that would be the minimum amount for the account for 2015 if it were determined using the factor designated under subsection 7308(4) as it read on December 31, 2014,

is the minimum amount for the account for 2015, and

is the total of all other contributions made by the member under the money purchase provision at or before the time of the contribution and designated for the purposes of this subsection.

Paragraph (

a) of Class 43 of

Schedule II to the Regulations is replaced by the following:

(

a) is not included in Class 29 or 53, but that would otherwise be included in Class 29 if that Class were read without reference to its subparagraphs ( b )(iii) and (

v) and paragraph ( c ); or

Schedule II to the Regulations is amended by adding the following after Class 52:

Class 53

Property acquired after 2015 and before 2026 that is not included in Class 29, but that would otherwise be included in that Class if

(

a) subparagraph ( a )(ii) of that Class were read without reference to “in Canadian field processing carried on by the lessee or”; and

(

b) that Class were read without reference to its subparagraphs ( b )(iv) to (vi) and paragraph ( c ).

C.R.C., c. 385

Canada Pension Plan Regulations

(1) Subsection 8(1) of the Canada Pension Plan Regulations is replaced by the following:

(1) Subject to subsections (1.1), (1.11), (1.12), (1.13) and (2), the employee’s contribution and the employer’s contribution shall be remitted to the Receiver General on or before the 15th day of the month following the month in which the employer paid to the employee the remuneration in respect of which those contributions were required to be made.

(2) Subsection 8(1.2) of the Regulations is replaced by the following:

(1.13) If an employer is a new employer throughout a particular month in a particular calendar year, contributions payable in the month may be remitted by the employer to the Receiver General

(

a) in respect of those contributions paid in January, February and March of the particular calendar year, on or before the 15th day of April of the particular calendar year;

(

b) in respect of those contributions paid in April, May and June of the particular calendar year, on or before the 15th day of July of the particular calendar year;

(

c) in respect of those contributions paid in July, August and September of the particular calendar year, on or before the 15th day of October of the particular calendar year; and

(

d) in respect of those contributions paid in October, November and December of the particular calendar year, on or before the 15th day of January of the year following the particular calendar year.

(1.2) For the purpose of this section,

(

a) the average monthly withholding amount of an employer for a calendar year is determined in accordance with subsections 108(1.2) and (1.3) of the Income Tax Regulations ;

(

b) the determination as to whether an employer is a new employer is made in accordance with subsections 108(1.4) and (1.41) of the Income Tax Regulations ; and

(

c) the monthly withholding amount in respect of a new employer for a month is determined in accordance with subsection 108(1.21) of the Income Tax Regulations .

(3) Subsections (1) and (2) apply to amounts and contributions required to be remitted to the Receiver General after 2015.

SOR/97-33

Insurable Earnings and Collection of Premiums Regulations

(1) Subsection 4(1) of the Insurable Earnings and Collection of Premiums Regulations is replaced by the following:

(1) Subject to subsections (2), (3), (3.1), (3.2) and (5), every employer shall remit the employee’s premiums and the employer’s premiums payable under the Act and these Regulations to the Receiver General on or before the 15th day of the month following the month in which the employer paid to the insured person insurable earnings in respect of which those premiums were required to be deducted or paid under the Act and these Regulations.

(2) Subsection 4(4) of the Regulations is replaced by the following:

(3.2) If an employer is a new employer throughout a particular month in a particular calendar year, premiums payable in the month may be remitted to the Receiver General

(

a) in respect of insurable earnings paid in January, February and March of the particular calendar year, on or before the 15th day of April of the particular calendar year;

(

b) in respect of insurable earnings paid in April, May and June of the particular calendar year, on or before the 15th day of July of the particular calendar year;

(

c) in respect of insurable earnings paid in July, August and September of the particular calendar year, on or before the 15th day of October of the particular calendar year; and

(

d) in respect of insurable earnings paid in October, November and December of the particular calendar year, on or before the 15th day of January of the year following the particular year.

(4) For the purpose of this section,

(

a) the average monthly withholding amount of an employer for a year is determined in accordance with subsections 108(1.2) and (1.3) of the Income Tax Regulations ;

(

b) the determination as to whether an employer is a new employer is made in accordance with subsections 108(1.4) and (1.41) of the Income Tax Regulations ; and

(

c) the monthly withholding amount in respect of a new employer for a month is determined in accordance with subsection 108(1.21) of the Income Tax Regulations .

(3) Subsections (1) and (2) apply to amounts and contributions required to be remitted to the Receiver General after 2015.

PART 2

SUPPORT FOR FAMILIES

Division 1

R.S., c. 1 (5th Supp.)

Income Tax Act

(1) Paragraphs (

a) and (

b) of the definition annual child care expense amount in subsection 63(3) of the Income Tax Act are replaced by the following:

( a )

$11,000, if the child is a person in respect of whom an amount may be deducted under

section 118.3 in computing a taxpayer’s tax payable under this Part for the year, and

(

b) if the child is not a person referred to in paragraph ( a ),

(i)

$8,000, if the child is under 7 years of age at the end of the year, and

(ii)

$5,000, in any other case;

(2) Subsection (1) applies to the 2015 and subsequent taxation years.

(1) Paragraph ( b.1 ) of the description of B in subsection 118(1) of the Act is replaced by the following:

Family caregiver amount for child

( b.1 )

$2,000 for each child, who is under the age of 18 years at the end of the taxation year, of the individual and who, by reason of mental or physical infirmity, is likely to be, for a long and continuous period of indefinite duration, dependent on others for significantly more assistance in attending to the child’s personal needs and care, when compared to children of the same age if

(

i) the child ordinarily resides throughout the taxation year with the individual together with another parent of the child, or

(ii)

except if subparagraph (

i) applies, the individual

(

A) may deduct an amount under paragraph (

b) in respect of the child, or

(

B) could deduct an amount under paragraph (

b) in respect of the child if

(I)

paragraph (4)(

a) and the reference in paragraph (4)(

b) to “or the same domestic establishment” did not apply to the individual for the taxation year, and

(II)

the child had no income for the year,

(2) Subsection (1) applies to the 2015 and subsequent taxation years. For the purpose of making the adjustment provided under subsection 117.1(1) of the Act as it applies to paragraph ( b.1 ) of the description of B in subsection 118(1) of the Act, as enacted by subsection (1), the amount to be used in the 2015 taxation year for the preceding taxation year is the amount under clause ( b.1 )(i)(

B) of the description of B in subsection 118(1) of the Act that would, but for subsection 117.1(3) of the Act, be the amount to be used under that clause for the 2014 taxation year.

(1) Section 118.92 of the Act is replaced by the following:

Ordering of credits

118.92

In computing an individual’s tax payable under this Part, the following provisions shall be applied in the following order: subsections 118(1) and (2),

section 118.7, subsections 118(3) and (10) and sections 118.01, 118.02, 118.03, 118.031, 118.04, 118.05, 118.06, 118.07, 118.3, 118.61, 118.5, 118.6, 118.9, 118.8, 118.2, 118.1, 118.62, 119.1 and 121.

(2) Section 118.92 of the Act, as enacted by subsection (1), is replaced by the following:

Ordering of credits

118.92

In computing an individual’s tax payable under this Part, the following provisions shall be applied in the following order: subsections 118(1) and (2),

section 118.7, subsections 118(3) and (10) and sections 118.01, 118.02, 118.031, 118.04, 118.05, 118.06, 118.07, 118.3, 118.61, 118.5, 118.6, 118.9, 118.8, 118.2, 118.1, 118.62, 119.1 and 121.

(3) Subsection (1) applies to the 2014 taxation year.

(4) Subsection (2) applies to the 2015 taxation year.

(1) The Act is amended by adding the following after

section 119:

Definitions

119.1

(1) The following

definitions apply in this section.

adjusted base tax payable

impôt payable de base rajusté

adjusted base tax payable , of an individual for a taxation year, means the amount that would be the individual’s tax payable under this Part for the year, if

(

a) the individual’s taxable income for the year were the individual’s split-adjusted income for the year; and

(

b) no amount were deductible under this Division other than the individual’s adjusted non-refundable tax credits amount for the year.

adjusted non-refundable tax credits amount

montant de crédits non remboursables rajustés

adjusted non-refundable tax credits amount , of an individual for a taxation year, means the amount determined by the formula

A + B where A

is the total of all amounts, each of which is an amount claimed by the individual — not exceeding the amount that may be deducted by the individual — in computing the individual’s tax payable for the taxation year

(

a) under any of subsections 118(2), (3) and (10) and sections 118.01 to 118.07, 118.1 to 118.3, 118.5 to 118.7 and 118.9, and

(

b) under

section 118.8, not exceeding the amount determined by the formula

A 1 – A 2 where A 1

is the amount determined for the description of A in

section 118.8 for the taxation year, and

A 2

is the amount, if any, by which the amount determined for the description of C in

section 118.8 for the taxation year exceeds the amount determined for the description of B in that

section for the taxation year; and

is the amount that would be deductible by the individual under subsection 118(1) in computing the individual’s tax payable for the taxation year if

(

a) the dollar amount set out in the formula in subparagraph ( a )(ii) of the description of B in that subsection were nil, and

(

b) the amount determined for the description of C.1 in subparagraph ( a )(ii) of the description of B in that subsection were determined by the formula

C – D where C

is the income of the individual’s spouse or common-law partner for the year, and

is the dollar amount set out in subparagraph ( a )(

i) of the description of B in that subsection.

base tax payable

impôt payable de base

base tax payable , of an individual for a taxation year, means the amount that would be the individual’s tax payable under this Part for the year if no amount were deductible under this Division other than an amount deductible under any of sections 118 to 118.9.

combined adjusted base tax payable

impôt payable de base rajusté réuni

combined adjusted base tax payable , of a qualifying individual for a taxation year, means the total of the qualifying individual’s adjusted base tax payable for the year and the adjusted base tax payable for the year of the qualifying individual’s eligible relation.

combined base tax payable

impôt payable de base réuni

combined base tax payable , of a qualifying individual for a taxation year, means the total of the qualifying individual’s base tax payable for the year and the base tax payable for the year of the qualifying individual’s eligible relation.

eligible relation

proche admissible

eligible relation , of a particular individual for a taxation year, means an individual who

(

a) is resident in Canada,

(

i) if the individual dies in the year, at the time that is immediately before the individual’s death, and

(ii)

in any other case, at the end of the year; and

(

b) is at any time in the year, married to, or in a common-law partnership with, the particular individual and not, by reason of the breakdown of their marriage or common-law partnership, living separate and apart from the particular individual at the end of the year and for a period of at least 90 days commencing in the year.

qualifying individual

particulier admissible

qualifying individual , for a taxation year, means an individual who

(

a) has an eligible relation for the year who has not deducted an amount under this

section for the year;

(

b) has a child who

(

i) is under the age of 18 years at the end of the year, and

(ii)

ordinarily resides throughout the year with the individual or the individual’s eligible relation for the year;

(

c) is resident in Canada,

(

i) if the individual dies in the year, at the time that is immediately before the individual’s death, and

(ii)

in any other case, at the end of the year; and

(

d) is not confined to a prison or similar institution for a period of at least 90 days during the year.

split-adjusted income

revenu rajusté par fractionnement

split-adjusted income , of an individual for a taxation year, means

(

a) if the individual’s taxable income for the year is greater than the taxable income for the year of the individual’s eligible relation, the amount that is the individual’s taxable income less the individual’s split adjustment for the year;

(

b) if the individual’s taxable income for the year is less than the taxable income for the year of the individual’s eligible relation, the amount that is the individual’s taxable income plus the individual’s split adjustment for the year; and

(

c) in any other case, the amount that is equal to the individual’s taxable income for the year.

split adjustment

rajustement par fractionnement

split adjustment , of an individual for a taxation year, means the lesser of $50,000 and one half of the absolute value of the positive or negative amount determined by the formula

A – B where A

is the individual’s taxable income for the year; and

is the taxable income for the year of the individual’s eligible relation.

Family tax cut credit

(2) For the purpose of computing the tax payable under this Part by a qualifying individual for a taxation year, there may be deducted the lesser of $2,000 and the amount determined by the formula

A – B where A

is the qualifying individual’s combined base tax payable for the year; and

is the qualifying individual’s combined adjusted base tax payable for the year.

Deduction not available

(3) No amount is deductible under subsection (2) in computing an individual’s tax payable under this Part for a taxation year if the individual or the individual’s eligible relation

(

a) does not file with the Minister a return of income in respect of the taxation year;

(

b) becomes bankrupt in the calendar year in which the taxation year ends; or

(

c) makes an election for the taxation year under

section 60.03.

Taxation year deeming rules

(4) For the purpose of applying the definition qualifying individual in subsection (1), in determining whether a child ordinarily resides throughout a taxation year with an individual or the individual’s eligible relation, the taxation year is deemed not to include

(

a) in the case of a child who is born or is adopted in the year, the portion of the year before the child’s birth or adoption;

(

b) in the case of an individual who marries or becomes a common-law partner at any time in the year, the portion of the year before that time;

(

c) in the case of an individual, an eligible relation of an individual or a child who dies in the year, the portion of the year after the death; and

(

d) in the case of an individual or an eligible relation of an individual who becomes resident in Canada in the year, any portion of the year in which the person is non-resident.

(2) Subsection (1) applies to the 2014 and subsequent taxation years.

(1) Clause 128(2)( e )(iii)(

A) of the Act is replaced by the following:

(

A) under any of sections 118 to 118.07, 118.2, 118.3, 118.5, 118.6, 118.8, 118.9 and 119.1,

(2) Subsection (1) applies to the 2014 and subsequent taxation years.

(1) Subsection 153(1.3) of the Act is replaced by the following:

Reduction not permitted

(1.3) The Minister shall not consider either of the following circumstances as a basis on which a lesser amount may be determined under subsection (1.1):

(

a) a joint election made or expected to be made under

section 60.03; or

(

b) a deduction or an intention to claim a deduction under

section 119.1.

(2) Subsection (1) applies to the 2014 and subsequent taxation years.

Division 2

2006, c. 4, s. 168

Universal Child Care Benefit Act

Amendments to the Act

The definition qualified dependant in

section 2 of the Universal Child Care Benefit Act is replaced by the following:

qualified dependant

personne à charge admissible

qualified dependant means a person who is a qualified dependant for the purpose of Subdivision a.1 of Division E of

Part I of the Income Tax Act .

Section 3 of the Act is replaced by the following:

Purpose

The purpose of this Act is to assist families by supporting their child care choices through direct financial support to a maximum of

( a )

$1,920 per year in respect of each of their children who is under six years of age; and

( b )

$720 per year in respect of each of their children who is six years of age or older but who is under 18 years of age.

(1) The portion of subsection 4(1) of the Act before paragraph (

a) is replaced by the following:

Amount of payment — child under six years

(1) In respect of every month before January 1, 2015, the Minister shall pay to an eligible individual, for each month at the beginning of which he or she is an eligible individual, for each child who, at the beginning of that month, is under six years of age and is a qualified dependant of the eligible individual,

(2) Section 4 of the Act is amended by adding the following after subsection (1):

Child under six years — January 1, 2015

(1.1) In respect of every month as of January 1, 2015, the Minister shall pay to an eligible individual, for each month at the beginning of which he or she is an eligible individual, for each child who, at the beginning of that month, is under six years of age and is a qualified dependant of the eligible individual,

(

a) a benefit of $80, if the eligible individual is a shared-custody parent of the qualified dependant; and

(

b) a benefit of $160 in any other case.

Other children — January 1, 2015

(1.2) In respect of every month as of January 1, 2015, the Minister shall pay to an eligible individual, for each month at the beginning of which he or she is an eligible individual, for each child who, at the beginning of that month, is six years of age or older and is a qualified dependant of the eligible individual,

(

a) a benefit of $30, if the eligible individual is a shared-custody parent of the qualified dependant; and

(

b) a benefit of $60 in any other case.

1992, c. 48, Sch.

Related Amendments to the Children’s Special Allowances Act

Section 3.1 of the Children’s Special Allowances Act is replaced by the following:

Monthly special allowance supplement

3.1

(1) There shall be added to a special allowance that is payable under

section 3, for a child who, at the beginning of the month for which that allowance is payable,

(

a) is under six years of age,

(

i) a special allowance supplement in the amount of $100, in respect of every month before January 1, 2015, or

(ii)

a special allowance supplement in the amount of $160, in respect of every month as of January 1, 2015; and

(

b) is six years of age or older, a special allowance supplement in the amount of $60, in respect of every month as of January 1, 2015.

Payment out of Consolidated Revenue Fund

(2) The supplement is to be paid out of the Consolidated Revenue Fund.

Paragraph 4(4)(

d) of the Act is replaced by the following:

(

d) reaches 18 years of age.

Coming into Force

July 1, 2015

This Division comes into force, or is deemed to have come into force, on July 1, 2015.

PART 3

VARIOUS MEASURES

Division 1

Federal Balanced Budget Act

Enactment of Act

Enactment

The Federal Balanced Budget Act , whose text is as follows and whose

schedule is set out in

Schedule 1 to this Act, is enacted:

An Act respecting the balancing of federal government budgets

Preamble

Whereas a sound fiscal position is crucial to economic growth and job creation over the longer term;

Whereas attaining and maintaining a sound fiscal position requires that the Government of Canada achieve annual balanced budgets and reduce debt, other than when a recession or extraordinary situation occurs;

Whereas maintaining balanced budgets and reducing debt helps to keep taxes low, instill confidence in consumers and investors, strengthen Canada’s ability to respond to longer-term economic and fiscal challenges and preserve the sustainability of public services;

And

whereas reducing the debt burden will help to ensure fairness for future generations by avoiding future tax increases or reductions in public services;

Now, therefore, 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

This Act may be cited as the Federal Balanced Budget Act .

INTERPRETATION

Definitions

The following

definitions apply in this Act.

balanced budget

équilibre budgétaire

balanced budget means a budget in which the total amount of expenses for a fiscal year does not exceed the total amount of revenues for that year, those revenues being calculated before any amounts to be set aside for contingencies are subtracted.

deputy minister

sous-ministre

deputy minister , with respect to an organization named in column 1 of the schedule, means the person occupying the position set out in column 2.

extraordinary situation

situation exceptionnelle

extraordinary situation means a situation that results in an aggregate direct cost to the Government of Canada of more than $3 billion in one fiscal year and that is caused by any of the following:

(

a) a natural disaster or other unanticipated emergency of national significance; or

(

b) an act of force or violence, war or threat of war, or other armed conflict.

federal debt

dette fédérale

federal debt means the accumulated deficit as stated in the Public Accounts.

initial deficit

déficit initial

initial deficit means a deficit that is projected in respect of the fiscal year that follows a fiscal year in respect of which a balanced budget was projected or recorded.

Minister

ministre

Minister means the Minister of Finance.

open fiscal year

exercice ouvert

open fiscal year means the first of the fiscal years covered by budget projections in respect of which the financial statements of the Government of Canada have not been reported in the Public Accounts.

operating budget freeze

gel du budget de fonctionnement

operating budget freeze means the measure set out in each of paragraphs 7 (1)(

a) and 8(1)( a ).

pay

rémunération

pay means,

(

a) in respect of the Prime Minister, a minister or minister of State, the sessional allowance provided for in paragraph 55.1(2)(

b) of the Parliament of Canada Act and the annual salary provided for in

section 4.1 of the Salaries Act or, in respect of a minister of State who does not preside over a ministry of State, the annual salary provided for in an appropriation Act; and

(

b) in respect of a deputy minister, a base rate of pay, whether expressed as a single rate of pay or a range of rates of pay or, if no such rate or range exists, any fixed or ascertainable amount of base pay.

pay freeze

gel salarial

pay freeze means the measure set out in paragraph 7 (1)( b ).

pay reduction

réduction salariale

pay reduction means the measure set out in paragraph 8 (1)( b ).

recession

récession

recession means a period of at least two consecutive quarters of negative growth in real gross domestic product for Canada, as reported by Statistics Canada under the Statistics Act .

APPLICATION

Economic and fiscal updates

This Act does not apply in respect of economic and fiscal updates.

2015-2016 fiscal year and subsequent years

For greater certainty, this Act applies in respect of the 2015-2016 fiscal year and subsequent fiscal years.

FEDERAL DEBT REDUCTION

Debt reduction

Any surplus recorded in the Public Accounts in respect of a fiscal year must be applied to the reduction of the federal debt.

PROJECTED DEFICIT

Appearance of Minister

(1) If the Minister tables a budget in the House of Commons that projects an initial deficit in respect of the open fiscal year or the following fiscal year, the Minister must appear before the appropriate committee of the House of Commons on any of the first 30 days on which that House is sitting after the day on which the budget is tabled to explain the reasons for the projected deficit and present a plan for a return to balanced budgets that includes

(

a) the measures set out in subsections 7 (1) and 8 (1) that apply; and

(

b) the period within which a balanced budget is to be achieved.

Subsequent appearances

(2) The Minister must appear before the committee annually to present an updated plan until a balanced budget is recorded in the Public Accounts in respect of a fiscal year that is covered by the plan.

Recession or extraordinary situation

(1) If a deficit is projected due to a recession or extraordinary situation that, at the time the budget is tabled, has occurred, is occurring or is forecast,

(

a) there is to be no increase in the operating budget of any government entity to fund annual wage increases; and

(

b) there is to be no increase in the pay for the Prime Minister, ministers, ministers of State and deputy ministers.

Duration of measures

(2) The operating budget freeze and the pay freeze are to take effect on the first day of the fiscal year that follows the fiscal year in which the recession or extraordinary situation ends and are to remain in effect until a balanced budget is recorded in the Public Accounts.

End of recession

(3) For the purposes of subsection (2), a recession ends in the fiscal year in which the second consecutive quarter of positive growth in real gross domestic product for Canada is reported by Statistics Canada under the Statistics Act .

No recession or extraordinary situation

(1) If a deficit is projected for reasons other than a recession or extraordinary situation,

(

a) there is to be no increase in the operating budget of any government entity to fund annual wage increases; and

(

b) there is to be a 5% reduction in the pay for the Prime Minister, ministers, ministers of State and deputy ministers.

Duration of measures

(2) The operating budget freeze and the pay reduction are to take effect on April 1 of the year in which the budget is tabled and are to remain in effect until a balanced budget is recorded in the Public Accounts.

RECORDED DEFICIT

Deficit recorded but not projected

If a deficit that was not projected in a budget is recorded in the Public Accounts in respect of a fiscal year, the Minister must appear before the appropriate committee of the House of Commons on any of the first 30 days on which that House is sitting after the day on which those Public Accounts are tabled to explain the reasons for the deficit and present a plan for a return to balanced budgets that includes

(

a) the measures set out in subsections 7 (1) and 8 (1) that apply; and

(

b) the period within which a balanced budget is to be achieved.

Recession or extraordinary situation

(1) If the deficit referred to in

section 9 is due to a recession or extraordinary situation that, at the time the Public Accounts are tabled, has occurred or is occurring, the operating budget freeze and pay freeze are to take effect on the first day of the fiscal year that follows the fiscal year in which the recession or extraordinary situation ends and are to remain in effect until a balanced budget is recorded in the Public Accounts.

End of recession or extraordinary situation

(2) For the purposes of subsection (1),

(

a) a recession ends in the fiscal year in which the second consecutive quarter of positive growth in real gross domestic product for Canada is reported by Statistics Canada under the Statistics Act ; and

(

b) an extraordinary situation ends in the fiscal year in which the Public Accounts recording a deficit due to that situation are tabled.

No recession or extraordinary situation

If the deficit referred to in

section 9 is not due to a recession or extraordinary situation, the operating budget freeze and pay reduction are to take effect on April 1 of the year that follows the year in which the Public Accounts are tabled and are to remain in effect until a balanced budget is recorded in the Public Accounts.

GENERAL PROVISIONS

Override

If a budget projects a deficit due to a recession that, at the time the budget is tabled, has occurred, is occurring or is forecast, the measures set out in this Act apply in respect of that projected deficit and

(

a) any measure set out in this Act that is already in effect because of any other projected or recorded deficit ceases to be in effect; and

(

b) any measure set out in this Act that was to take effect because of any other projected or recorded deficit is not to take effect.

Amendments to

schedule

The Governor in Council may, by order, amend the

schedule by adding or deleting the name of an organization or a position.

Division 2

Prevention of Terrorist Travel Act

Enactment of Act

Enactment

The Prevention of Terrorist Travel Act is enacted as follows:

An Act respecting the protection of information in relation to certain decisions made under the Canadian Passport Order

SHORT TITLE

Short title

This Act may be cited as the Prevention of Terrorist Travel Act .

INTERPRETATION

Definition of judge

In this Act, judge means the Chief Justice of the Federal Court or a judge of that Court designated by the Chief Justice.

DESIGNATION OF MINISTER

Minister

The Governor in Council may, by order, designate a minister of the Crown to be the Minister referred to in this Act.

APPEALS

Cancellations under Canadian Passport Order — terrorism or national security

(1) If a passport has been cancelled as a result of a decision of the Minister under the Canadian Passport Order that the passport is to be cancelled on the grounds that the cancellation is necessary to prevent the commission of a terrorism offence, as defined in

section 2 of the Criminal Code , or for the national security of Canada or a foreign country or state, the person to whom the passport was issued may appeal that decision to a judge within 30 days after the day on which the person receives notice of the Minister’s decision in respect of an application that was made under that Order to have the cancellation reconsidered.

Extension

(2) Despite subsection (1), the person may appeal the Minister’s decision that the passport is to be cancelled within any further time that a judge may, before or after the end of those 30 days, fix or allow.

Determination and disposition

(3) If an appeal is made, the judge must, without delay, determine whether cancelling the passport is reasonable on the basis of the information available to him or her and may, if he or she finds that cancelling it is unreasonable, quash the Minister’s decision that the passport is to be cancelled.

Procedure

(4) The following rules apply to appeals under this section:

(

a) at any time during the proceeding, the judge must, on the Minister’s request, hear evidence or other information in the absence of the public and of the appellant and their counsel if, in the judge’s opinion, the disclosure of the evidence or other information could be injurious to national security or endanger the safety of any person;

(

b) the judge must ensure the confidentiality of the evidence and other information provided by the Minister if, in the judge’s opinion, its disclosure would be injurious to national security or endanger the safety of any person;

(

c) throughout the proceeding, the judge must ensure that the appellant is provided with a

summary of evidence and other information that enables the appellant to be reasonably informed of the Minister’s case but that does not include anything that, in the judge’s opinion, would be injurious to national security or endanger the safety of any person if disclosed;

(

d) the judge must provide the appellant and the Minister with an opportunity to be heard;

(

e) the judge may receive into evidence anything that, in the judge’s opinion, is reliable and appropriate, even if it is inadmissible in a court of law, and may base his or her decision on that evidence;

(

f) the judge may base his or her decision on evidence or other information even if a

summary of that evidence or other information has not been provided to the appellant during the proceeding;

(

g) if the judge determines that evidence or other information provided by the Minister is not relevant or if the Minister withdraws the evidence or other information, the judge must not base his or her decision on that evidence or other information and must return it to the Minister; and

(

h) the judge must ensure the confidentiality of all evidence and other information that the Minister withdraws.

Protection of information on an appeal

Subsections 4 (3) and (4) apply to any appeal of a decision made under

section 4 and to any further appeal, with any necessary modifications.

JUDICIAL REVIEW

Refusals or revocations under Canadian Passport Order — terrorism or national security

(1) The rules set out in subsection (2) apply to judicial review proceedings in respect of the following decisions:

(

a) a decision of the Minister under the Canadian Passport Order that a passport is not to be issued or is to be revoked on the grounds that the refusal to issue or the revocation is necessary to prevent the commission of a terrorism offence, as defined in

section 2 of the Criminal Code , or for the national security of Canada or a foreign country or state; and

(

b) a decision of the Minister under that Order that passport services are not to be delivered to a person on a ground referred to in paragraph (

a) if

(

i) the Minister’s decision is made after he or she decides, on the same ground, that a passport is not to be issued to the person or is to be revoked, or

(ii)

the Minister’s decision is made after the passport issued to the person has expired, but, based on facts that occurred before the expiry date, he or she could have decided that the passport is to be revoked on the same ground had it not expired.

Rules

(2) The following rules apply for the purposes of this section:

(

a) at any time during the proceeding, the judge must, on the Minister’s request, hear submissions on evidence or other information in the absence of the public and of the applicant and their counsel if, in the judge’s opinion, the disclosure of the evidence or other information could be injurious to national security or endanger the safety of any person;

(

b) the judge must ensure the confidentiality of the evidence and other information provided by the Minister if, in the judge’s opinion, its disclosure would be injurious to national security or endanger the safety of any person;

(

c) the judge must ensure that the applicant is provided with a

summary of the evidence and other information available to the judge that enables the applicant to be reasonably informed of the reasons for the Minister’s decision but that does not include anything that, in the judge’s opinion, would be injurious to national security or endanger the safety of any person if disclosed;

(

d) the judge must provide the applicant and the Minister with an opportunity to be heard;

(

e) the judge may base his or her decision on evidence or other information available to him or her even if a

summary of that evidence or other information has not been provided to the applicant;

(

f) if the judge determines that evidence or other information provided by the Minister is not relevant or if the Minister withdraws the evidence or other information, the judge must not base his or her decision on that evidence or other information and must return it to the Minister; and

(

g) the judge must ensure the confidentiality of all evidence and other information that the Minister withdraws.

Protection of information on an appeal

Subsection 6 (2) applies to any appeal of a decision made by a judge in relation to the judicial review proceedings referred to in

section 6 and to any further appeal, with any necessary modifications.

R.S., c. C-5

Related Amendment to the Canada Evidence Act

The

schedule to the Canada Evidence Act is amended by adding the following after item 20:

A judge of the Federal Court, for the purposes of sections 4 and 6 of the Prevention of Terrorist Travel Act

Division 3

Intellectual Property

R.S., c. I-9

Industrial Design Act

The Industrial Design Act is amended by adding the following after

section 3:

Obvious error

3.1

The Minister may, within six months after an entry is made in the Register of Industrial Designs, correct any error in the entry that is obvious from the documents relating to the registered design in question that are, at the time that the entry is made, in the Minister’s possession.

Section 20 of the Act and the heading before it are repealed.

Section 21 of the Act and the heading before it are replaced by the following:

Extension of Time

Time period extended

(1) If a time period fixed under this Act for doing anything ends on a prescribed day or a day that is designated by the Minister, that time period is extended to the next day that is not a prescribed day or a designated day.

Power to designate day

(2) The Minister may, on account of unforeseen circumstances and if the Minister is satisfied that it is in the public interest to do so, designate any day for the purposes of subsection (1). If a day is designated, the Minister shall inform the public of that fact on the website of the Canadian Intellectual Property Office.

(1) Section 25 of the Act is amended by adding the following after paragraph ( d ):

( d.1 )

authorizing the Minister to waive, subject to any prescribed terms and conditions, the payment of a fee if the Minister is satisfied that the circumstances justify it;

(2) Section 25 of the Act is amended by adding the following after paragraph ( e ):

( e.1 )

respecting the correction of obvious errors in documents submitted to the Minister or the Commissioner of Patents, including

(

i) the determination of what constitutes an obvious error, and

(ii)

the effect of the correction;

Paragraph 30(

a) of the Act is replaced by the following:

(

a) the provisions of this Act, as they read immediately before the coming-into-force date, other than sections 5, 13 and 20; and

Paragraphs 32(

a) and (

b) of the Act are replaced by the following:

(

a) the provisions of this Act, as they read immediately before the coming-into-force date, other than sections 3, 13 and 20; and

(

b) sections 3, 3.1, 13, 21 and 24.1.

R.S., c. P-4

Patent Act

Subsection 5(2) of the Patent Act is replaced by the following:

Absence, inability to act or vacancy

(2) If the Commissioner is absent or unable to act or the office of Commissioner is vacant, the Assistant Commissioner or, if at the same time the Assistant Commissioner is absent or unable to act or the office of Assistant Commissioner is vacant, another officer designated by the Minister may exercise the powers and shall perform the duties of the Commissioner.

Section 8 of the Act is repealed.

Section 11 of the Act is repealed.

(1) Subsection 12(1) of the Act is amended by adding the following after paragraph ( g ):

( g.1 )

authorizing the Commissioner to waive, subject to any prescribed terms and conditions, the payment of a fee if the Commissioner is satisfied that the circumstances justify it;

(2) Paragraph 12(1)( j.5 ) of the Act is replaced by the following:

( j.5 )

respecting divisional applications, including the time period within which divisional applications may be filed and the persons who may file divisional applications;

( j.51 )

defining one invention for the purposes of

section 36;

(3) Subsection 12(1) of the Act is amended by adding the following after paragraph ( j.8 ):

( j.81 )

respecting the correction of obvious errors in documents submitted to the Commissioner or the Patent Office or in patents or other documents issued under this Act, including

(

i) the determination of what constitutes an obvious error, and

(ii)

the effect of the correction;

The Act is amended by adding the following after

section 16:

Privileged communication

16.1

(1) A communication that meets the following conditions is privileged in the same way as a communication that is subject to solicitor-client privilege or, in civil law, to professional secrecy of advocates and notaries and no person shall be required to disclose, or give testimony on, the communication in a civil, criminal or administrative action or proceeding:

(

a) it is between an individual whose name is entered on the register of patent agents and that individual’s client;

(

b) it is intended to be confidential; and

(

c) it is made for the purpose of seeking or giving advice with respect to any matter relating to the protection of an invention.

Waiver

(2) Subsection (1) does not apply if the client expressly or implicitly waives the privilege.

Exceptions

(3) Exceptions to solicitor-client privilege or, in civil law, to professional secrecy of advocates and notaries apply to a communication that meets the conditions set out in paragraphs (1)(

a) to ( c ).

Patent agents — country other than Canada

(4) A communication between an individual who is authorized to act as a patent agent under the law of a country other than Canada and that individual’s client that is privileged under the law of that other country and that would be privileged under subsection (1) had it been made between an individual whose name is entered on the register of patent agents and that individual’s client is deemed to be a communication that meets the conditions set out in paragraphs (1)(

a) to ( c ).

Individual acting on behalf of patent agent or client

(5) For the purposes of this section, an individual whose name is entered on the register of patent agents or an individual who is authorized to act as a patent agent under the law of a country other than Canada includes an individual acting on their behalf and a client includes an individual acting on the client’s behalf.

Application

(6) This

section applies to communications that are made before the day on which this

section comes into force if they are still confidential on that day and to communications that are made after that day. However, this

section does not apply in respect of an action or proceeding commenced before that day.

Section 26 of the Act is replaced by the following:

Annual report

The Commissioner shall, in each year, cause to be prepared and laid before Parliament a report of the Commissioner’s activities under this Act.

Subsection 26.1(1) of the Act is repealed.

The portion of subsection 28.4(4) of the Act before paragraph (

a) is replaced by the following:

Multiple previously regularly filed applications

(4) If two or more applications have been previously regularly filed as described in paragraph 28.1(1)( a ), subparagraph 28.2(1)( d )(

i) or paragraph 78.3(1)(

a) or (2)( a ), either in or for the same country or in or for different countries,

(1) Subsections 38.2(1) and (2) of the Act are replaced by the following:

Amendments to specifications and drawings

38.2

(1) Subject to subsections (2) to (3.1) and the regulations, the specification and drawings contained in an application for a patent in Canada may be amended before the patent is issued.

Restriction

(2) The specification and drawings contained in an application, other than a divisional application, may not be amended to add matter that cannot reasonably be inferred from the specification or drawings contained in the application on its filing date.

(2) Subsection 38.2(4) of the Act is replaced by the following:

Divisional application

(3.1) The specification and drawings contained in a divisional application may not be amended to add matter

(

a) that may not be or could not have been added, under subsection (2) or (3) or this subsection, to the specification and drawings contained in the application for a patent from which the divisional application results; or

(

b) that cannot reasonably be inferred from the specification or drawings contained in the divisional application on the date on which the Commissioner, in respect of that application, receives the prescribed documents and information or, if they are received on different dates, on the latest of those dates.

Non-application of subsections (2) to (3.1)

(4) Subsections (2) to (3.1) do not apply if it is admitted in the specification that the matter is prior art with respect to the application.

Application subject to regulations

(5) Subsections (2) to (3.1) apply subject to any regulations made under paragraph 12(1)( j.81 ).

Subparagraph 55.11(1)( a )(iii) of the Act is replaced by the following:

(iii)

that was deemed abandoned under paragraph 73(1)( a ), (

b) or ( e ), under paragraph 73(1)(

f) as it read at any time before the coming into force of this subparagraph or under subsection 73(2);

Section 62 of the Act is repealed.

(1) The portion of subsection 68(1) of the Act before paragraph (

a) is replaced by the following:

Contents of applications

(1) Every application presented to the Commissioner under

section 65 shall

(2) Subsection 68(2) of the Act is replaced by the following:

Service

(2) The Commissioner shall consider the matters alleged in the application and declarations referred to in subsection (1) and, if satisfied that the applicant has a bona fide interest and that a case for relief has been made, the Commissioner shall direct the applicant to serve copies of the application and declarations on the patentee or the patentee’s representative for service and on any other persons appearing from the records of the Patent Office to be interested in the patent, and the applicant shall advertise the application both

(

a) in the Canada Gazette , and

(

b) on the website of the Canadian Intellectual Property Office or in any other prescribed location.

(1) Subsection 73(1) of the Act is amended by adding “or” at the end of paragraph ( d ), by striking out “or” at the end of paragraph (

e) and by repealing paragraph ( f ).

(2) Subsections 73(4) and (5) of the Act are replaced by the following:

Filing date

(5) An application that is reinstated retains its filing date.

Section 78 of the Act is replaced by the following:

Time period extended

(1) If a time period fixed under this Act for doing anything ends on a prescribed day or a day that is designated by the Commissioner, that time period is extended to the next day that is not a prescribed day or a designated day.

Power to designate day

(2) The Commissioner may, on account of unforeseen circumstances and if the Commissioner is satisfied that it is in the public interest to do so, designate any day for the purposes of subsection (1). If a day is designated, the Commissioner shall inform the public of that fact on the website of the Canadian Intellectual Property Office.

Paragraphs 78.22(

a) and (

b) of the Act are replaced by the following:

(

a) the provisions of this Act as they read immediately before October 1, 1989, other than the definition legal representatives in

section 2, subsections 4(2), 5(2) and 7(1), sections 8, 15 and 29, paragraph 31(2)(

a) and sections 49 to 51 and 78; and

(

b) the definition legal representatives in

section 2, subsections 4(2), 5(2) and 7(1), sections 8.1, 15 and 15.1, paragraph 31(2)(

a) and sections 38.1, 49, 78 and 78.2.

Replacement of “complémentaire” and “complémentaires”

The French version of the Act is amended by replacing “complémentaire” and “complémentaires” with “divisionnaire” and “divisionnaires”, respectively, with any grammatical adaptations, in the following provisions:

(

a) the heading before

section 36;

( b )

subsections 36(2) to (4);

(

c) the portion of paragraph 55.11(1)(

b) before subparagraph (i); and

(

d) paragraph 78.2( b ).

R.S., c. T-13

Trade-marks Act

The Trade-marks Act is amended by adding the following after

section 51.12:

TRADE-MARK AGENTS

Privileged communication

51.13

(1) A communication that meets the following conditions is privileged in the same way as a communication that is subject to solicitor-client privilege or, in civil law, to professional secrecy of advocates and notaries and no person shall be required to disclose, or give testimony on, the communication in a civil, criminal or administrative action or proceeding:

(

a) it is between an individual whose name is included on the list of trade-mark agents and that individual’s client;

(

b) it is intended to be confidential; and

(

c) it is made for the purpose of seeking or giving advice with respect to any matter relating to the protection of a trade-mark, geographical indication or mark referred to in paragraph 9(1)( e ), ( i ), ( i.1 ), ( i.3 ), (

n) or ( n.1 ).

Waiver

(2) Subsection (1) does not apply if the client expressly or implicitly waives the privilege.

Exceptions

(3) Exceptions to solicitor-client privilege or, in civil law, to professional secrecy of advocates and notaries apply to a communication that meets the conditions set out in paragraphs (1)(

a) to ( c ).

Trade-mark agents — country other than Canada

(4) A communication between an individual who is authorized to act as a trade-mark agent under the law of a country other than Canada and that individual’s client that is privileged under the law of that other country and that would be privileged under subsection (1) had it been made between an individual whose name is included on the list of trade-mark agents and that individual’s client is deemed to be a communication that meets the conditions set out in paragraphs (1)(

a) to ( c ).

Individual acting on behalf of trade-mark agent or client

(5) For the purposes of this section, an individual whose name is included on the list of trade-mark agents or an individual who is authorized to act as a trade-mark agent under the law of a country other than Canada includes an individual acting on their behalf and a client includes an individual acting on the client’s behalf.

Application

(6) This

section applies to communications that are made before the day on which this

section comes into force if they are still confidential on that day and to communications that are made after that day. However, this

section does not apply in respect of an action or proceeding commenced before that day.

Paragraph 65(

j) of the Act is replaced by the following:

(

j) respecting the payment of fees to the Registrar, the amount of those fees and the circumstances in which any fees previously paid may be refunded in whole or in part;

( j.1 )

authorizing the Registrar to waive, subject to any prescribed terms and conditions, the payment of a fee if the Registrar is satisfied that the circumstances justify it;

Section 66 of the Act is replaced by the following:

Time period extended

(1) If a time period fixed under this Act for doing anything ends on a prescribed day or a day that is designated by the Registrar, that time period is extended to the next day that is not a prescribed day or a designated day.

Power to designate day

(2) The Registrar may, on account of unforeseen circumstances and if the Registrar is satisfied that it is in the public interest to do so, designate any day for the purposes of subsection (1). If a day is designated, the Registrar shall inform the public of that fact on the website of the Canadian Intellectual Property Office.

(1) Paragraphs 70(1)(

a) and (

b) of the Act are replaced by the following:

(

a) the provisions of this Act as they read immediately before the day on which

section 342 of the Economic Action Plan 2014 Act, No. 1 comes into force, other than subsections 6(2) to (4), sections 28 and 36, subsections 38(6) to (8) and sections 39, 40 and 66;

(

b) the definition Nice Classification in

section 2, subsections 6(2) to (4), sections 28 and 36, subsections 38(6) to (12), sections 39 and 40 and subsections 48(3) and (5), as enacted by the Economic Action Plan 2014 Act, No. 1 ; and

(

c) section 66, as enacted by the Economic Action Plan 2015 Act, No. 1 .

(2) Subsection 70(2) of the Act is replaced by the following:

Regulations

(2) For greater certainty, a regulation made under

section 65 applies to an application referred to in subsection (1), unless the regulation provides otherwise.

Coordinating Amendments

2014, c. 20

(1) In this section, other Act means the Economic Action Plan 2014 Act, No. 1 .

(2) section 366 of the other Act comes into force before the day on which this Act receives royal assent, then

section 66 of the English version of this Act and the heading before it are amended by replacing “trade-mark” with “trademark”, with any grammatical adaptations.

(3) section 366 of the other Act comes into force on the day on which this Act receives royal assent, then this Act is deemed to have received royal assent before that

section 366 comes into force.

(4) section 67 of this Act comes into force on the same day as

section 357 of the other Act, then that

section 357 is deemed to have come into force before that

section 67 .

(5) If subsection 367(99) of the other Act produces its effects before subsection 69 (1) of this Act comes into force, then that subsection 69 (1) is replaced by the following:

(1) Paragraphs 70(1)(

a) and (

b) of the Act are replaced by the following:

(

a) the provisions of this Act as they read immediately before the day on which

section 342 of the Economic Action Plan 2014 Act, No. 1 comes into force, other than subsections 6(2) to (4), sections 28, 29 and 36, subsections 38(6) to (8) and sections 39, 40 and 66;

(

b) the definition Nice Classification in

section 2, subsections 6(2) to (4), sections 28 to 29.1 and 36, subsections 38(6) to (12), sections 39 and 40 and subsections 48(3) and (5), as enacted by the Economic Action Plan 2014 Act, No. 1 ; and

(

c) section 66, as enacted by the Economic Action Plan 2015 Act, No. 1 .

(6) If subsection 69 (1) of this Act comes into force before subsection 367(99) of the other Act has produced its effects, then that subsection 367(99) is replaced by the following:

(99) On the first day on which both

section 359 of this Act and

section 28 of the other Act are in force, subsection 70(1) of the Trademarks Act is replaced by the following:

Application advertised

(1) An application for registration that has been advertised under subsection 37(1) before the day on which

section 342 of the Economic Action Plan 2014 Act, No. 1 comes into force shall be dealt with and disposed of in accordance with

(

a) the provisions of this Act as they read immediately before the day on which

section 342 of the Economic Action Plan 2014 Act, No. 1 comes into force, other than subsections 6(2) to (4), sections 28, 29 and 36, subsections 38(6) to (8) and sections 39, 40 and 66;

(

b) the definition Nice Classification in

section 2, subsections 6(2) to (4), sections 28 to 29.1 and 36, subsections 38(6) to (12), sections 39 and 40 and subsections 48(3) and (5), as enacted by the Economic Action Plan 2014 Act, No. 1 ; and

(

c) section 66, as enacted by the Economic Action Plan 2015 Act, No. 1 .

(7) If subsection 69 (1) of this Act comes into force on the day on which subsection 367(99) of the other Act produces its effects, then

(

a) that subsection 69 (1) is deemed never to have come into force and is repealed; and

( b )

paragraphs 70(1)(

a) and (

b) of the Trademarks Act are replaced by the following:

(

a) the provisions of this Act as they read immediately before the day on which

section 342 of the Economic Action Plan 2014 Act, No. 1 comes into force, other than subsections 6(2) to (4), sections 28, 29 and 36, subsections 38(6) to (8) and sections 39, 40 and 66;

(

b) the definition Nice Classification in

section 2, subsections 6(2) to (4), sections 28 to 29.1 and 36, subsections 38(6) to (12), sections 39 and 40 and subsections 48(3) and (5), as enacted by the Economic Action Plan 2014 Act, No. 1 ; and

(

c) section 66, as enacted by the Economic Action Plan 2015 Act, No. 1 .

2014, c. 39

(1) In this section, other Act means the Economic Action Plan 2014 Act, No. 2 .

(2) section 46 of this Act comes into force before

section 109 of the other Act, then that

section 109 is repealed.

(3) section 109 of the other Act comes into force before

section 46 of this Act, then that

section 46 is replaced by the following:

Section 21 of the Act is replaced by the following:

Time period extended

(1) If a time period fixed under this Act for doing anything ends on a prescribed day or a day that is designated by the Minister, that time period is extended to the next day that is not a prescribed day or a designated day.

Power to designate day

(2) The Minister may, on account of unforeseen circumstances and if the Minister is satisfied that it is in the public interest to do so, designate any day for the purposes of subsection (1). If a day is designated, the Minister shall inform the public of that fact on the website of the Canadian Intellectual Property Office.

(4) section 46 of this Act comes into force on the same day as

section 109 of the other Act, then that

section 109 is deemed never to have come into force and is repealed.

(5) If sections 48 and 49 of this Act come into force on the same day as

section 112 of the other Act, then that

section 112 is deemed to have come into force before those sections 48 and 49 .

(6) If subsection 53 (2) of this Act comes into force on the same day as subsection 118(4) of the other Act, then that subsection 118(4) is deemed to have come into force before that subsection 53 (2).

(7) section 58 of this Act comes into force on the same day as

section 131 of the other Act, then that

section 131 is deemed to have come into force before that

section 58 .

(8) section 59 of this Act comes into force on the same day as

section 136 of the other Act, then that

section 136 is deemed to have come into force before that

section 59 .

(9) If subsection 62 (1) of this Act comes into force on the same day as subsection 137(1) of the other Act, then that subsection 137(1) is deemed to have come into force before that subsection 62 (1).

(10) section 140 of the other Act comes into force before subsection 62 (1) of this Act, then, on the day on which that subsection 62 (1) comes into force,

section 78.52 of the Patent Act is amended by adding the following after subsection (1):

Abandonment — notice after coming-into-force date

(1.1) If, on or after the day on which subsection 62(1) of the Economic Action Plan 2015 Act, No. 1 comes into force, an applicant fails to pay the prescribed fees stated to be payable in a notice of allowance of patent given before that day but after the coming-into-force date, paragraph 73(1)(

f) as it read immediately before the day on which that subsection 62(1) comes into force applies in respect of any abandonment resulting from the failure.

(11) section 64 of this Act comes into force on the same day as

section 139 of the other Act, then that

section 139 is deemed to have come into force before that

section 64 .

(12) section 65 of this Act comes into force on the same day as sections 129, 136 and 139 of the other Act, then those sections 129, 136 and 139 are deemed to have come into force before that

section 65 .

Coming into Force

Order in council — Industrial Design Act

(1) Sections 44 , 45 and 47 to 49 come into force on a day to be fixed by order of the Governor in Council, but that day must not be before the day on which sections 102 to 113 of the Economic Action Plan 2014 Act, No. 2 come into force.

Order in council — Patent Act

(2) Sections 50 to 53 , 55 to 62 , 64 and 65 come into force on a day to be fixed by order of the Governor in Council, but that day must not be before the day on which sections 114 to 141 of the Economic Action Plan 2014 Act, No. 2 come into force.

Order in council — Trade-marks Act

(3) Section 67 and subsection 69 (2) come into force on a day to be fixed by order of the Governor in Council, but that day must not be before the day on which

section 357 of the Economic Action Plan 2014 Act, No. 1 comes into force.

Order in council — sections 46, 63 and 68

(4) Sections 46 , 63 and 68 come into force on a day or days to be fixed by order of the Governor in Council.

Twelve months after royal assent

(5) Sections 54 and 66 come into force 12 months after the day on which this Act receives royal assent.

Subsection 69 (1)

(6) Subsection 69 (1) comes into force on the first day on which both

section 359 of the Economic Action Plan 2014 Act, No. 1 and

section 68 are in force.

Division 4

Compassionate Care Leave and Benefits

R.S., c. L-2

Canada Labour Code

(1) The portion of subsection 206.3(2) of the Canada Labour Code before paragraph (

a) is replaced by the following:

Entitlement to leave

(2) Subject to subsections (3) to (8), every employee is entitled to and shall be granted a leave of absence from employment of up to 28 weeks to provide care or support to a family member of the employee if a qualified medical practitioner issues a certificate stating that the family member has a serious medical condition with a significant risk of death within 26 weeks from

(2) Subparagraph 206.3(3)( b )(ii) of the Act is replaced by the following:

(ii)

the period of 52 weeks following the first day of the week referred to in paragraph (

a) ends.

(3) Section 206.3 of the Act is amended by adding the following after subsection (3):

Certificate not necessary

(3.1) For greater certainty, but subject to subsection (3), for leave under this

section to be taken after the end of the period of 26 weeks set out in subsection (2), it is not necessary for a qualified medical practitioner to issue an additional certificate under that subsection.

(4) Subsection 206.3(7) of the Act is replaced by the following:

Aggregate leave — more than one employee

(7) The aggregate amount of leave that may be taken by two or more employees under this

section in respect of the care or support of the same family member shall not exceed 28 weeks in the period referred to in subsection (3).

1996, c. 23

Employment Insurance Act

(1) Paragraph 12(3)(

d) of the Employment Insurance Act is replaced by the following:

(

d) because the claimant is providing care or support to one or more family members described in subsection 23.1(2) is 26; and

(2) Subsection 12(4.1) of the Act is replaced by the following:

Maximum — compassionate care benefits

(4.1) Even if more than one claim is made under this Act, at least one of which is made under

section 23.1 — or even if more than one certificate is issued for the purposes of this Act, at least one of which is issued for the purposes of

section 23.1 — for the same reason and in respect of the same family member, the maximum number of weeks of benefits payable under this Act in respect of that family member is 26 weeks during the period of 52 weeks that begins on the first day of the week referred to in paragraph 23.1(4)( a ).

(1) Subparagraph 23.1(4)( b )(iii) of the Act is replaced by the following:

(iii)

the period of 52 weeks following the first day of the week referred to in paragraph (

a) ends.

(2) Section 23.1 of the Act is amended by adding the following after subsection (4):

Certificate not necessary

(4.1) For greater certainty, but subject to subsections (4) and 50(8.1), for benefits under this

section to be payable after the end of the period of 26 weeks set out in paragraph (2)( a ), it is not necessary for a medical doctor to issue an additional certificate under subsection (2).

(3) Subsections 23.1(8) and (8.1) of the Act are replaced by the following:

Division of weeks of benefits

(8) If a claimant makes a claim for benefits under this

section and another claimant makes a claim for benefits under this

section or

section 152.06 in respect of the same family member, any remaining weeks of benefits payable under this section, under

section 152.06 or under both those sections, up to a maximum of 26 weeks, may be divided in the manner agreed to by those claimants.

Maximum number of weeks that can be divided

(8.1) For greater certainty, if, in respect of the same family member, a claimant makes a claim for benefits under this

section and another claimant makes a claim for benefits under

section 152.06, the total number of weeks of benefits payable under this

section and

section 152.06 that may be divided between them may not exceed 26 weeks.

Section 50 of the Act is amended by adding the following after subsection (8):

Proof — additional certificate

(8.1) For the purpose of proving that the conditions of subsection 23.1(2) or 152.06(1) are met, the Commission may require the claimant to provide it with an additional certificate issued by a medical doctor.

(1) Subparagraph 152.06(3)( b )(iii) of the Act is replaced by the following:

(iii)

the period of 52 weeks following the first day of the week referred to in paragraph (

a) ends.

(2) Section 152.06 of the Act is amended by adding the following after subsection (3):

Certificate not necessary

(3.1) For greater certainty, but subject to subsections (3) and 50(8.1), for benefits under this

section to be payable after the end of the period of 26 weeks set out in paragraph (1)( a ), it is not necessary for a medical doctor to issue an additional certificate under subsection (1).

(3) Subsections 152.06(7) and (8) of the Act are replaced by the following:

Division of weeks of benefits

(7) If a self-employed person makes a claim for benefits under this

section and another person makes a claim for benefits under this

section or

section 23.1 in respect of the same family member, any remaining weeks of benefits payable under this section, under

section 23.1 or under both those sections, up to a maximum of 26 weeks, may be divided in the manner agreed to by the self-employed person and the other person. If they cannot agree, the we