C-44 1 42 64-65-66 Elizabeth II 2015-2016-2017

An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures

Budget Implementation Act, 2017, No. 1

Budget Implementation Act, 2017, No. 1 2017 6 22 20 2017 90834

RECOMMENDATION

His Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “

An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures ”.

SUMMARY

Part 1 implements certain income tax measures proposed in the March 22, 2017 budget by

(

a) eliminating the investment tax credit for child care spaces;

(

b) eliminating the deduction for eligible home relocation loans;

(

c) ensuring that amounts received on account of the caregiver recognition benefit under the Veterans Well-being Act are exempt from income tax;

(

d) eliminating tax exemptions of allowances for members of legislative assemblies and certain municipal officers;

(

e) eliminating the tax exemption for insurers of farming and fishing property;

(

f) eliminating the additional deduction for gifts of medicine;

(

g) replacing the existing caregiver credit, infirm dependant credit and family caregiver tax credit with the new Canada caregiver credit;

(

h) eliminating the public transit tax credit;

(

i) ensuring certain costs related to the use of reproductive technologies qualify for the medical expense tax credit;

(

j) extending the list of medical practitioners that can certify eligibility for the disability tax credit to include nurse practitioners;

(

k) extending eligibility for the tuition tax credit to fees paid for occupational skills courses at post-secondary institutions and taking into account such courses in determining whether an individual is a qualifying student under the Income Tax Act ;

(

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

(

m) eliminating the tobacco manufacturers’ surtax;

(

n) permitting employers to distribute T4 information slips electronically provided certain conditions are met; and

(

o) delaying the repeal of the provisions related to the National Child Benefit supplement in the Income Tax Act .

Part 2 implements certain goods and services tax/harmonized sales tax (GST/HST) measures proposed in the March 22, 2017 budget by

(

a) adding naloxone and its salts to the list of GST/HST zero-rated non-prescription drugs that are used to treat life-threatening conditions;

(

b) amending the definition of taxi business to require, in certain circumstances, providers of ride-sharing services to register for the GST/HST and charge GST/HST in the same manner as taxi operators; and

(

c) repealing the GST/HST rebate available to non-residents for the GST/HST that is payable in respect of the accommodation portion of eligible tour packages.

Part 3 implements certain excise measures proposed in the March 22, 2017 budget by

(

a) adjusting excise duty rates on tobacco products to account for the elimination of the tobacco manufacturers’ surtax; and

(

b) increasing the excise duty rates on alcohol products by 2% and automatically adjusting those rates annually by the Consumer Price Index starting in April 2018.

Part 4 enacts and amends several Acts in order to implement various measures.

Division 1 of

Part 4 amends the Special Import Measures Act to provide for binding and appealable rulings as to whether a particular good falls within the scope of a trade remedy measure, authorities to investigate and address the circumvention of trade remedy measures, consideration of whether a particular market situation is rendering selling prices in an exporting country unreliable for the purposes of determining normal values and the termination of a trade remedy investigation in respect of an exporter found to have an insignificant margin of dumping or amount of subsidy.

Division 2 of

Part 4 enacts the Borrowing Authority Act , which allows the Minister of Finance to borrow money on behalf of Her Majesty in right of Canada with the authorization of the Governor in Council and provides for the maximum amount of certain borrowings. The Division amends the Financial Administration Act and the Hibernia Development Project Act to provide that the applicable rate of currency exchange quoted by the Bank of Canada is its daily average rate. It also amends the Financial Administration Act to allow that Minister to choose a rate of currency exchange other than one quoted by the Bank of Canada.

Finally, it makes a consequential amendment to the Budget Implementation Act, 2016, No. 1 .

Division 3 of

Part 4 amends the Canada Deposit Insurance Corporation Act and the Bank Act to

(

a) specify that one of the objects of the Canada Deposit Insurance Corporation is to act as the resolution authority for its member institutions;

(

b) require Canada’s domestic systemically important banks to develop, submit and maintain resolution plans to that Corporation; and

(

c) provide the Superintendent of Financial Institutions greater flexibility in setting the requirement for domestic systemically important banks to maintain a minimum capacity to absorb losses.

Division 4 of

Part 4 amends the Shared Services Canada Act in order to permit the Minister responsible for Shared Services Canada to do the following, subject to any terms and conditions that that Minister specifies:

(

a) delegate certain powers given to that Minister under that Act to an appropriate Minister , as defined in

section 2 of the Financial Administration Act ; and

(

b) authorize in exceptional circumstances a department to obtain a particular service other than from that Minister through Shared Services Canada, including by meeting its requirement for that service internally.

Division 5 of

Part 4 authorizes a payment to be made out of the Consolidated Revenue Fund to the Canadian Institute for Advanced Research to support a pan-Canadian artificial intelligence strategy.

Division 6 of

Part 4 amends the Canada Student Financial Assistance Act to expand eligibility for student financial assistance under that Act to include persons registered as Indians under the Indian Act , whether or not they are Canadian citizens, permanent residents or protected persons.

It also amends the Canada Education Savings Act to permit the primary caregiver’s cohabiting spouse or common-law partner to designate a trust to which is to be paid a Canada Learning Bond or an additional amount of a Canada Education Savings grant and to apply to the Minister for the waiver of certain requirements of that Act or the regulations to avoid undue hardship. It also amends that Act to provide rules for the payment of an additional amount of a Canada Education Savings grant in situations where more than one trust has been designated.

Division 7 of

Part 4 amends the Parliament of Canada Act to provide for the Parliamentary Budget Officer to report directly to Parliament and to be supported by an office that is separate from the Library of Parliament and to provide for the appointment and tenure of the Parliamentary Budget Officer to be that of an officer of Parliament. It expands the Parliamentary Budget Officer’s right of access to government information, clarifies the Parliamentary Budget Officer’s mandate with respect to the provision of research, analysis and costings and establishes a new mandate with respect to the costing of platform proposals during election periods. It also makes consequential amendments to certain Acts.

This Division also amends the Parliament of Canada Act to provide that the meetings of the Board of Internal Economy of the House of Commons are open, with certain exceptions, to the public.

Division 8 of

Part 4 amends the Investment Canada Act to provide for an immediate increase to $1 billion of the review threshold amount for certain investments by WTO investors that are not state-owned enterprises. In addition, it requires that the report of the Director of Investments on the administration of that Act also include

Part IV.1.

Division 9 of

Part 4 provides funding to provinces for home care services and mental health services for the fiscal year 2017–2018.

Division 10 of

Part 4 amends the Judges Act to implement the Response of the Government of Canada to the Report of the 2015 Judicial Compensation and Benefits Commission. It provides for the continued statutory indexation of judicial salaries, an increase to the salaries of Federal Court prothonotaries to 80% of that of a Federal Court judge, an annual allowance for prothonotaries and reimbursement of legal costs incurred during their participation in the compensation review process.

It also makes changes to the compensation of certain current and former chief justices to appropriately compensate them for their service and it makes technical amendments to ensure the correct division of annuities and enforcement of financial support orders, where necessary. Finally, it increases the number of judges of the Court of Queen’s Bench of Alberta and the Yukon Supreme Court and increases the number of judicial salaries that may be paid under paragraph 24(3)(

a) of that Act from thirteen to sixteen and under paragraph 24(3)(

b) from fifty to sixty-two.

Division 11 of

Part 4 amends the Employment Insurance Act to, among other things, allow for the payment of parental benefits over a longer period at a lower benefit rate, allow maternity benefits to be paid as early as the 12th week before the expected week of birth, create a benefit for family members to care for a critically ill adult and allow for benefits to care for a critically ill child to be payable to family members.

This Division also amends the Canada Labour Code to, among other things, increase the maximum length of parental leave to 63 weeks, extend the period prior to the estimated date of birth when the maternity leave may begin to 13 weeks, create a leave for a family member to care for a critically ill adult and allow for the leave related to the critical illness of a child to be taken by a family member.

Division 12 of

Part 4 amends the Canadian Forces Members and Veterans Re-establishment and Compensation Act to, among other things,

(

a) specify to whom career transition services may be provided under

Part 1 of the Act and authorize the Governor in Council to make regulations respecting those services;

(

b) create a new education and training benefit that will provide a veteran with up to $80,000 for a course of study at an educational institution or for other education or training that is approved by the Minister of Veterans Affairs;

(

c) end the family caregiver relief benefit and replace it with a caregiver recognition benefit that is payable to a person designated by a veteran;

(

d) authorize the Minister of Veterans Affairs to waive the requirement for an application for compensation, services or assistance under the Act in certain cases;

(

e) set out to whom any amount payable under the Act is to be paid if the person who is entitled to that amount dies before receiving it; and

(

f) change the name of the Act.

The Division also amends the Pension Act and the Department of Veterans Affairs Act to remove references to hospitals under the jurisdiction of the Department of Veterans Affairs as there are no longer any such hospitals.

Finally, it makes consequential amendments to other Acts.

Division 13 of

Part 4 amends the Immigration and Refugee Protection Act to

(

a) provide that a foreign national who is a member of a certain portion of the class of foreign nationals who are nominated by a province or territory for the purposes of that Act may be issued an invitation to make an application for permanent residence only in respect of that class;

(

b) provide that a foreign national who declines an invitation to make an application in relation to an expression of interest remains eligible to be invited to make an application in relation to the same expression of interest;

(

c) authorize the Minister to give a single ministerial instruction that sets out the rank, in respect of different classes, that an eligible foreign national must occupy to be invited to make an application;

(

d) provide that a ministerial instruction respecting the criteria that a foreign national must meet to be eligible to be invited to make an application applies in respect of an expression of interest that is submitted before the day on which the instruction takes effect;

(

e) authorize the Minister, for the purpose of facilitating the selection of a foreign national as a member of a class or a temporary resident, to disclose personal information in relation to the foreign national that is provided to the Minister by a third party or created by the Minister;

(

f) set out the circumstances in which an officer under that Act may issue documents in respect of an application to foreign nationals who do not meet certain criteria or do not have the qualifications they had when they were issued an invitation to make an application; and

(

g) provide that the Service Fees Act does not apply to fees for the acquisition of permanent residence status or to certain fees for services provided under the Immigration and Refugee Protection Act .

Division 14 of

Part 4 amends the Employment Insurance Act to broaden the definition of insured participant , in

Part II of that Act, as well as the support measures that may be established by the Canada Employment Insurance Commission. It also repeals certain provisions of that Act.

Division 15 of

Part 4 amends the Aeronautics Act , the Navigation Protection Act , the Railway Safety Act and the Canada Shipping Act, 2001 to provide the Minister of Transport with the authority to enter into agreements respecting any matter for which a charge or fee could be prescribed under those Acts and to make related amendments.

Division 16 of

Part 4 amends the Food and Drugs Act to give the Minister of Health the authority to fix user fees for services, use of facilities, regulatory processes and approvals, products, rights and privileges that are related to drugs, medical devices, food and cosmetics. It also gives that Minister the authority to remit those fees, to adjust them and to withhold or withdraw services for the non-payment of them. Finally, it exempts those fees from the Service Fees Act .

Division 17 of

Part 4 amends the Canada Labour Code to, among other things,

(

a) transfer to the Canada Industrial Relations Board the powers, duties and functions of appeals officers under

Part II of that Act and of referees and adjudicators under

Part III of that Act;

(

b) provide a complaint mechanism under

Part III of that Act for employer reprisals;

(

c) permit the Minister of Labour to order an employer to determine, following an internal audit, whether it is in compliance with a provision of

Part III of that Act and to provide the Minister with a corresponding report;

(

d) permit inspectors to order an employer to cease the contravention of a provision of

Part III of that Act;

(

e) extend the period with respect to which a payment order to recover unpaid wages or other amounts may be issued;

(

f) impose administrative fees on employers to whom payment orders are issued; and

(

g) establish an administrative monetary penalty scheme to supplement existing enforcement measures under Parts II and III of that Act.

This Division also amends the Wage Earner Protection Program Act to transfer to the Canada Industrial Relations Board the powers, duties and functions of adjudicators under that Act and makes consequential amendments to other Acts.

Division 18 of

Part 4 enacts the Canada Infrastructure Bank Act , which establishes the Canada Infrastructure Bank as a Crown corporation. The Bank’s purpose is to invest in, and seek to attract private sector and institutional investment to, revenue-generating infrastructure projects. The Act also provides for, among other things, the powers and functions of the Bank, its governance framework and its financial management and control, allows for the appointment of a designated Minister, and provides that the Minister of Finance may pay to the Bank up to $35 billion and approve loan guarantees.

Finally, this Division makes consequential amendments to the Access to Information Act , the Financial Administration Act and the Payments in Lieu of Taxes Act .

Division 19 of

Part 4 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to, among other things, expand the list of disclosure recipients to include the Department of National Defence and the Canadian Armed Forces and to include beneficial ownership information as “designated information” that can be disclosed by the Financial Transactions and Reports Analysis Centre of Canada. It also makes several technical amendments to ensure that the legislation functions as intended and to clarify certain provisions, including the definition of client and the application of that Act to trust companies.

Division 20 of

Part 4 enacts the Invest in Canada Act . It also makes consequential and related amendments to other Acts.

Division 21 of

Part 4 enacts the Service Fees Act . The Act requires responsible authorities, before certain fees are fixed, to develop fee proposals for consultation and to table them in Parliament. It also requires that performance standards be established in relation to certain fees and that responsible authorities remit those fees when the standards are not met. It adjusts certain fees on an annual basis in accordance with the Consumer Price Index. Furthermore, it requires responsible authorities and the President of the Treasury Board to report on fees.

This Division also makes a related amendment to the Economic Action Plan 2014 Act, No. 1 and terminological amendments to other Acts and repeals the User Fees Act .

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 Budget Implementation Act, 2017, No. 1 .

PART 1

Amendments to the Income Tax Act and to Related Legislation

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

Income Tax Act

(1) Paragraph 6(1)(f.1) of the Income Tax Act is replaced by the following:

Canadian Forces members and veterans income replacement benefits

(f.1)

the total of all amounts received by the taxpayer in the year on account of an earnings loss benefit, a supplementary retirement benefit or a career impact allowance payable to the taxpayer under

Part 2 of the Veterans Well-being Act ;

(2) Subsection (1) comes into force on April 1, 2018.

(1) Subsection 18(9) of the Act is amended by adding “and” at the end of paragraph (d), by striking out “and” at the end of paragraph (

e) and by repealing paragraph (f).

(2) Subsection (1) applies in respect of expenditures incurred after March 21, 2017, except that subsection (1) does not apply in respect of expenditures incurred before 2020 under a written agreement entered into before March 22, 2017.

(1) Paragraph 20(1)(nn.1) of the Act is repealed.

(2) Subsection (1) applies in respect of expenditures incurred after March 21, 2017, except that subsection (1) does not apply in respect of expenditures incurred before 2020 under a written agreement entered into before March 22, 2017.

(1) Subsection 80.4(4) of the Act is replaced by the following:

Interest on loans for home purchase or relocation

(4) For the purpose of computing the benefit under subsection (1) in a taxation year in respect of a home purchase loan or a home relocation loan, the amount of interest determined under paragraph (1)(

a) shall not exceed the amount of interest that would have been determined thereunder if it had been computed at the prescribed rate in effect at the time the loan was received or the debt was incurred, as the case may be.

(2) Subsection (1) comes into force on January 1, 2018.

(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 Veterans Well-being 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 or a caregiver recognition benefit payable to the taxpayer under

Part 3.1 of that Act;

(2) Paragraph 81(1)(d.1) of the Act, as enacted by subsection (1), 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 Veterans Well-being 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 caregiver recognition benefit payable to the taxpayer under

Part 3.1 of that Act;

(3) Subsections 81(2) and (3) of the Act are repealed.

(4) Subsection (1) comes into force on April 1, 2018.

(5) Subsection (2) applies in respect of the 2020 and subsequent taxation years.

(6) Subsection (3) comes into force on January 1, 2019.

(1) Paragraph (

b) of the definition taxable Canadian corporation in subsection 89(1) of the Act is replaced by the following:

(

b) was not, by reason of a statutory provision, exempt from tax under this Part; ( société canadienne imposable )

(2) Subsection (1) applies to taxation years that begin after 2018.

(1) Paragraph 110(1)(

j) of the Act is repealed.

(2) Subsection 110(1.4) of the Act is repealed.

(3) Subsections (1) and (2) come into force on January 1, 2018.

(1) Paragraph 110.1(1)(a.1) of the Act is repealed.

(2) Subsections 110.1(8) and (9) of the Act are repealed.

(3) Subsections (1) and (2) apply in respect of gifts made after March 21, 2017.

(1) Paragraph (

b) of the description of E in the definition non-capital loss in subsection 111(8) of the Act is replaced by the following:

(

b) an amount deducted under paragraph (1)(

b) or

section 110.6, or deductible under any of paragraphs 110(1)(

d) to (d.3), (f), (

g) and (k),

section 112 and subsections 113(1) and 138(6), in computing the taxpayer’s taxable income for the year, or

(2) Subsection (1) comes into force on January 1, 2018.

(1) Subsection 117.1(1.1) of the Act is repealed.

(2) Subsection (1) applies to the 2017 and subsequent taxation years.

(1) Clause (

A) of the description of C in subparagraph (a)(ii) of the description of B in subsection 118(1) of the Act is replaced by the following:

(A)

$2,150 if the spouse or common-law partner is dependent on the individual by reason of mental or physical infirmity, and

(2) The portion of clause (

A) before subclause (

I) of the description of D in subparagraph (b)(iv) of the description of B in subsection 118(1) of the Act is replaced by the following:

(A)

$2,150 if

(3) The portion of paragraph (b.1) before subparagraph (

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

Caregiver amount for infirm child

(b.1)

$2,150 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

(4) Paragraphs (c.1) to (

e) of the description of B in subsection 118(1) of the Act are replaced by the following:

Canada caregiver credit

(

d) for each person who, at any time in the year,

(

i) is dependent on the individual because of mental or physical infirmity, and

(ii)

either

(

A) is a spouse or common-law partner of the individual, or

(

B) has attained the age of 18 years and is a dependant of the individual,

the amount determined by the formula

$6,883 − E where E

is the amount, if any, by which the dependant’s income for the year exceeds $16,163, and

Additional amount

(

e) in the case of an individual entitled to a deduction in respect of a person because of paragraph (

a) or (

b) and who would also be entitled, but for paragraph (4)(c), to a deduction because of paragraph (

d) in respect of the person, the amount by which the amount that would be determined under paragraph (

d) exceeds the amount determined under paragraph (

a) or (b), as the case may be, in respect of the person.

(5) Paragraphs 118(4)(

c) to (

e) of the Act are replaced by the following:

(

c) if an individual is entitled to a deduction under subsection (1) because of paragraph (

a) or (

b) of the description of B in subsection (1) for a taxation year in respect of any person, no amount may be deducted because of paragraph (

d) of that description by any individual for the year in respect of the person; and

(

d) if more than one individual is entitled to a deduction under subsection (1) because of paragraph (

d) of the description of B in subsection (1) for a taxation year in respect of the same person,

(

i) the total of all amounts so deductible for the year shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals for that person if that individual were the only individual entitled to deduct an amount for the year because of that paragraph for that person, and

(ii)

if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions.

(6) The portion of subsection 118(6) of the Act before paragraph (

a) is replaced by the following:

Definition of dependant

(6) For the purposes of paragraph (

d) of the description of B in subsection (1), dependant , of an individual for a taxation year, means a person who at any time in the year is dependent on the individual for support and is

(7) Subsections (1) to (6) apply to the 2017 and subsequent taxation years. However, for the 2017 taxation year, subsection 117.1(1) of the Act does not apply in respect of amounts expressed in dollars in

(

a) clause (

A) of the description of C in subparagraph (a)(ii) of the description of B in subsection 118(1) of the Act, as enacted by subsection (1);

(

b) clause (

A) of the description of D in subparagraph (b)(iv) of the description of B in subsection 118(1) of the Act, as amended by subsection (2);

(

c) paragraph (b.1) of the description of B in subsection 118(1) of the Act, as amended by subsection (3); and

(

d) paragraph (

d) of the description of B in subsection 118(1) of the Act, as enacted by subsection (4).

(1) The description of C in the description of B in subsection 118.02(2) of the Act is replaced by the following:

is the total of all amounts each of which is the portion of the cost of an eligible public transit pass or of an eligible electronic payment card, attributable to the use of public commuter transit services in the taxation year and before July 2017 by the individual or by a person who is in the taxation year a qualifying relation of the individual, and

(2) Section 118.02 of the Act, as amended by subsection (1), is repealed.

(3) Subsection (1) applies to the 2017 taxation year.

(4) Subsection (2) applies to the 2018 and subsequent taxation years.

(1) Clause (c)(i)(

B) of the definition eligible individual in subsection 118.041(1) of the Act is replaced by the following:

(

B) paragraph (

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

(2) Subsection (1) applies to the 2017 and subsequent taxation years.

(1) Section 118.2 of the Act is amended by adding the following after subsection (2.1):

Fertility expenses

(2.2) An amount is deemed to be a medical expense of an individual for the purposes of this

section if the amount

(

a) is paid for the purpose of a patient (within the meaning of subsection (2)) conceiving a child; and

(

b) would be a medical expense of the individual (within the meaning of subsection (2)) if the patient were incapable of conceiving a child because of a medical condition.

(2) Subsection (1) applies to the 2017 and subsequent taxation years. However, if an individual makes a request for a refund in respect of a taxation year to the Minister of National Revenue within the time limit specified in paragraph 164(1.5)(

a) of the Act, subsection (1) also applies in respect of that taxation year.

(1) The portion of paragraph 118.3(1)(a.2) of the Act before subparagraph (

i) is replaced by the following:

(a.2)

in the case of an impairment in physical or mental functions the effects of which are such that the individual’s ability to perform a single basic activity of daily living is markedly restricted or would be so restricted but for therapy referred to in paragraph (a.1), a medical practitioner has certified in prescribed form that the impairment is a severe and prolonged impairment in physical or mental functions the effects of which are such that the individual’s ability to perform a basic activity of daily living is markedly restricted or would be markedly restricted, but for therapy referred to in paragraph (a.1), where the medical practitioner is a medical doctor, a nurse practitioner or, in the case of

(2) Subparagraphs 118.3(1)(a.3)(

i) and (ii) of the Act are replaced by the following:

(

i) an impairment with respect to the individual’s ability in feeding or dressing themself, or in walking, a medical doctor, a nurse practitioner or an occupational therapist, and

(ii)

in the case of any other impairment, a medical doctor or nurse practitioner,

(3) Clause 118.3(2)(a)(i)(

B) of the Act is replaced by the following:

(

B) paragraph (

d) of that description where the person 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

(4) Subsections (1) and (2) apply in respect of certifications made after March 21, 2017.

(5) Subsection (3) applies to the 2017 and subsequent taxation years.

(1) The portion of subsection 118.4(2) of the Act before paragraph (

a) is replaced by the following:

Reference to medical practitioners, etc.

(2) For the purposes of sections 63, 64, 118.2, 118.3 and 118.6, a reference to an audiologist, dentist, medical doctor, medical practitioner, nurse, nurse practitioner, occupational therapist, optometrist, pharmacist, physiotherapist, psychologist or speech-language pathologist is a reference to a person authorized to practise as such,

(2) Subsection (1) is deemed to have come into force on March 22, 2017.

(1) Subparagraph 118.5(1)(a)(ii.1) of the Act is replaced by the following:

(ii.1)

are paid to an educational institution described in subparagraph (

i) in respect of courses that are not at the post-secondary school level, if

(

A) the individual had not attained the age of 16 years before the end of the year, or

(

B) the purpose of the individual’s enrolment at the institution cannot reasonably be regarded as being to provide the individual with skills, or to improve the individual’s skills, in an occupation,

(2) Subsection (1) applies to the 2017 and subsequent taxation years.

(1) The portion of the definition qualifying educational program in subsection 118.6(1) of the Act before paragraph (

a) is replaced by the following:

qualifying educational program means a program of not less than three consecutive weeks duration that provides that each student taking the program spend not less than 10 hours per week on courses or work in the program and, in respect of a program at an institution described in the definition designated educational institution (other than an institution described in subparagraph (a)(ii) of that definition), that is a program that does not consist primarily of research (unless the program leads to a diploma from a college or a Collège d’enseignement général et professionnel, or a bachelor, masters, doctoral or equivalent degree) but, in relation to any particular student, does not include a program if the student receives, from a person with whom the student is dealing at arm’s length, any allowance, benefit, grant or reimbursement for expenses in respect of the program other than

(2) The portion of paragraph (

c) of the definition qualifying student in subsection 118.6(1) of the Act before subparagraph (

i) is replaced by the following:

(

c) in the case of an individual who is enrolled in a program (other than a program at the post-secondary school level) at a designated educational institution described in subparagraph (a)(

i) of the definition designated educational institution or who is enrolled in a program at a designated educational institution described in subparagraph (a)(ii) of that definition,

(3) The definition qualifying student in subsection 118.6(1) of the Act is amended by striking out “and” at the end of paragraph (b), by adding “and” at the end of paragraph (

c) and by adding the following after paragraph (c):

(

d) in the case of an individual who is enrolled at a designated educational institution described in paragraph (

c) of the definition designated educational institution , is enrolled in a program that is at the post-secondary level; ( étudiant admissible )

(4) Subsections (1) to (3) apply to the 2017 and subsequent taxation years.

(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, 118.04, 118.041, 118.05, 118.06, 118.07, 118.3, 118.61, 118.5, 118.9, 118.8, 118.2, 118.1, 118.62 and 121.

(2) Subsection (1) applies to the 2018 and subsequent taxation years.

(1) Subparagraph 122.3(1)(e)(iii) of the Act is replaced by the following:

(iii)

the total of all amounts each of which is an amount deducted under

section 110.6 or paragraph 111(1)(b), or deductible under paragraph 110(1)(d.2), (d.3), (

f) or (g), in computing the individual’s taxable income for the year.

(2) Subsection (1) comes into force on January 1, 2018.

(1) Subclause 126(1)(b)(ii)(A)(III) of the Act is replaced by the following:

(III)

the total of all amounts each of which is an amount deducted under

section 110.6 or paragraph 111(1)(b), or deductible under any of paragraphs 110(1)(

d) to (d.3), (

f) and (

g) and sections 112 and 113, in computing the taxpayer’s taxable income for the year, and

(2) Subclause 126(2.1)(a)(ii)(A)(III) of the Act is replaced by the following:

(III)

the total of all amounts each of which is an amount deducted under

section 110.6 or paragraph 111(1)(b), or deductible under any of paragraphs 110(1)(

d) to (d.3), (

f) and (

g) and sections 112 and 113, in computing the taxpayer’s taxable income for the year, and

(3) Subparagraph 126(3)(b)(iii) of the Act is replaced by the following:

(iii)

the total of all amounts each of which is an amount deducted under

section 110.6 or paragraph 111(1)(b), or deductible under any of paragraphs 110(1)(

d) to (d.3), (

f) and (g), in computing the taxpayer’s taxable income for the year,

(4) Subsections (1) to (3) come into force on January 1, 2018.

(1) Subparagraph 127(5)(a)(

i) of the Act is replaced by the following:

(

i) the taxpayer’s investment tax credit at the end of the year in respect of property acquired before the end of the year, of the taxpayer’s apprenticeship expenditure for the year or a preceding taxation year, of the taxpayer’s flow-through mining expenditure for the year or a preceding taxation year, of the taxpayer’s pre-production mining expenditure for the year or a preceding taxation year or of the taxpayer’s SR&ED qualified expenditure pool at the end of the year or at the end of a preceding taxation year, and

(2) Clause 127(5)(a)(ii)(

A) of the Act is replaced by the following:

(

A) the taxpayer’s investment tax credit at the end of the year in respect of property acquired in a subsequent taxation year, of the taxpayer’s apprenticeship expenditure for a subsequent taxation year, of the taxpayer’s flow-through mining expenditure for a subsequent taxation year, of the taxpayer’s pre-production mining expenditure for a subsequent taxation year or of the taxpayer’s SR&ED qualified expenditure pool at the end of the subsequent taxation year to the extent that an investment tax credit was not deductible under this subsection for the subsequent taxation year, and

(3) Subsection 127(7) of the Act is replaced by the following:

Investment tax credit of certain trusts

(7) If, in a particular taxation year of a taxpayer who is a beneficiary under a trust that is a graduated rate estate or that is deemed to be in existence by

section 143, an amount is determined in respect of the trust under paragraph (a), (a.1), (a.4), (

b) or (e.1) of the definition investment tax credit in subsection (9) for its taxation year that ends in that particular taxation year, the trust may, in its return of income for its taxation year that ends in that particular taxation year, designate the portion of that amount that can, having regard to all the circumstances including the terms and conditions of the trust, reasonably be considered to be attributable to the taxpayer and was not designated by the trust in respect of any other beneficiary of the trust, and that portion is to be added in computing the investment tax credit of the taxpayer at the end of that particular taxation year and is to be deducted in computing the investment tax credit of the trust at the end of its taxation year that ends in that particular taxation year.

(4) The portion of subsection 127(8) of the Act before paragraph (

a) is replaced by the following:

Investment tax credit of partnership

(8) Subject to subsection (28), where, in a particular taxation year of a taxpayer who is a member of a partnership, an amount would be determined in respect of the partnership, for its taxation year that ends in the particular taxation year, under paragraph (a), (a.1), (a.4), (

b) or (e.1) of the definition investment tax credit in subsection (9), if

(5) Subparagraph 127(8.2)(b)(

i) of the Act is amended by adding “or” at the end of clause (A.1) and by repealing clause (A.2).

(6) Paragraph 127(8.31)(

a) of the Act is replaced by the following:

(

a) the total of all amounts each of which is an amount that would, if the partnership were a person and its fiscal period were its taxation year, be determined in respect of the partnership under paragraph (a), (a.1), (a.4), (

b) or (e.1) of the definition investment tax credit in subsection (9) for a taxation year that is the fiscal period,

(7) The

definitions child care space amount , eligible child care space expenditure , specified child care start-up expenditure and specified property in subsection 127(9) of the Act are repealed.

(8) 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 2017 and before 2019 (including, for greater certainty, an expense that is deemed by subsection 66(12.66) to be incurred before 2019) 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),

(9) 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 2017 and before April 2018, 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 2017 and before April 2018; ( dépense minière déterminée )

(10) Paragraph (a.5) of the definition investment tax credit in subsection 127(9) of the Act is repealed.

(11) Paragraph (e.1) of the definition investment tax credit in subsection 127(9) of the Act is amended by adding “or” at the end of subparagraph (v), by replacing “or” at the end of subparagraph (vi) with “and” and by repealing subparagraph (vii).

(12) Paragraph (f.1) of the definition specified percentage in subsection 127(9) of the Act is amended by adding “or” at the end of subparagraph (i), by striking out “or” at the end of subparagraph (ii) and by repealing subparagraph (iii).

(13) Subsection 127(11.1) of the Act is amended by adding “and” at the end of paragraph (c.4) and by repealing paragraph (c.5).

(14) Subsection 127(11.2) of the Act is replaced by the following:

Time of acquisition

(11.2) In applying subsections (5), (7) and (8), paragraphs (

a) and (a.1) of the definition investment tax credit in subsection (9) and

section 127.1, qualified property and qualified resource property are deemed not to have been acquired by a taxpayer before the property is considered to have become available for use by the taxpayer, determined without reference to paragraphs 13(27)(

c) and (28)(d).

(15) Subsections 127(27.1) to (27.12) of the Act are repealed.

(16) Subsection 127(28.1) of the Act is repealed.

(17) Subparagraph 127(30)(

a) of the Act is amended by adding “and” at the end of subparagraph (i), by striking out “and” at the end of subparagraph (ii) and by repealing subparagraph (iii).

(18) Paragraph 127(30)(

b) of the Act is replaced by the following:

(

b) the amount that would be determined in respect of the partnership under subsection (8) if that subsection were read without reference to subsections (28) and (35).

(19) Subsections (1) to (7) and (10) to (18) apply in respect of expenditures incurred after March 21, 2017, except that they do not apply in respect of expenditures incurred before 2020 under a written agreement entered into before March 22, 2017.

(20) Subsections (8) and (9) apply to expenses renounced under a flow-through share agreement entered into after March 2017.

(1) Paragraph 149(1)(

t) of the Act is repealed.

(2) Subsections 149(4.1) to (4.3) of the Act are repealed.

(3) The portion of subsection 149(10) of the Act before paragraph (

a) is replaced by the following:

Becoming or ceasing to be exempt

(10) If at any time (in this subsection referred to as that time ), a person — that is a corporation or, if that time is after September 12, 2013, a trust — becomes or ceases to be exempt from tax under this Part on its taxable income, the following rules apply:

(4) Subsections (1) to (3) apply to taxation years that begin after 2018.

(1) Subsection 149.1(15) of the Act is amended by adding “and” at the end of paragraph (b), by striking out “and” at the end of paragraph (

c) and by repealing paragraph (d).

(2) Subsection (1) applies in respect of gifts made after March 21, 2017.

(1) Subsection 182(1) of the Act is replaced by the following:

Surtax

(1) Every corporation shall pay a tax under this Part for the corporation’s taxation year equal to the amount determined by the formula

0.5A(B/C) where A

is the corporation’s

Part I tax on tobacco manufacturing profits for the year;

is the number of days in the year that are before March 23, 2017; and

is the number of days in the year.

(2) Subsection (1) applies to taxation years that include March 22, 2017.

(1) Part II of the Act, as amended by subsection 26 (1), is repealed.

(2) Subsection (1) applies to taxation years that begin after March 22, 2017.

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

section 221:

Providing information returns in electronic format

221.01

A person may provide an information return electronically under subsection 209(5) of the Income Tax Regulations if the criteria specified by the Minister are met.

(2) Subsection (1) comes into force on January 1, 2018.

(1) Subparagraph 241(4)(d)(viii) of the Act is replaced by the following:

(viii)

to an official of the Department of Veterans Affairs solely for the purposes of the administration of the War Veterans Allowance Act , the Veterans Well-being Act or

Part XI of the Civilian War-related Benefits Act ,

(2) Subsection (1) comes into force on April 1, 2018.

2016, c. 7

Budget Implementation Act, 2016, No. 1

Subsection 29(9) of the Budget Implementation Act, 2016, No. 1 is replaced by the following:

(9) Subsections (2) to (5) come into force on July 1, 2018.

C.R.C., c. 945

Income Tax Regulations

(1) Section 209 of the Income Tax Regulations is amended by adding the following after subsection (4):

(5) A person may provide a Statement of Remuneration Paid (T4) information return, as required under subsection (1), as a single document in an electronic format (instead of the two copies required under subsection (1)) to the taxpayer to whom the return relates, on or before the date on which the return is to be filed with the Minister, unless

(

a) the specified criteria referred to in

section 221.01 of the Act are not met;

(

b) the taxpayer has requested that the information return be provided in paper format; or

(

c) at the time the return is required to be issued,

(

i) the taxpayer is on extended leave or is no longer an employee of the person, or

(ii)

the taxpayer cannot reasonably be expected to have access to the information return in electronic format.

(2) Subsection (1) applies in respect of information returns that are required to be filed after 2017.

(1) Section 3505 of the Regulations is repealed.

(2) Subsection (1) applies in respect of gifts made after March 21, 2017.

(1) Subsection 4802(2) of the Regulations is repealed.

(2) Subsection (1) applies to taxation years that begin after 2018.

Coordinating Amendments

2016, c. 7

(1) In this section, other Act means the Budget Implementation Act, 2016, No. 1 .

(2) If subsection 29(9) of the other Act produces its effects before

section 30 of this Act comes into force, then

(

a) that

section 30 is deemed never to have come into force and is repealed;

(

b) the following amendments are deemed to have come into force on July 1, 2017:

(

i) the first formula in subsection 122.61(1) of the Income Tax Act is replaced by the following:

(A + C + M)/12 (ii)

the formula in the description of A in subsection 122.61(1) of the Income Tax Act is replaced by the following:

E − Q − R (iii)

subsection 122.61(1) of the Income Tax Act is amended by adding the following after the description of A:

is the amount determined by the formula

F – (G ×

H) where F

is, if the person is, at the beginning of the month, an eligible individual in respect of

(

a) only one qualified dependant, $2,308, and

(

b) two or more qualified dependants, the total of

(i)

$2,308 for the first qualified dependant,

(ii)

$2,042 for the second qualified dependant, and

(iii)

$1,943 for each of the third and subsequent qualified dependants,

is the amount determined by the formula

J – [K – (L/0.122)] where J

is the person’s adjusted income for the year,

is $45,282, and

is the amount referred to in paragraph (

a) of the description of F, and

(

a) if the person is an eligible individual in respect of only one qualified dependant, 12.2%, and

(

b) if the person is an eligible individual in respect of two or more qualified dependants, the fraction (expressed as a percentage rounded to the nearest one-tenth of one per cent) of which

(

i) the numerator is the total that would be determined under the description of F in respect of the eligible individual if that description were applied without reference to the fourth and subsequent qualified dependants in respect of whom the person is an eligible individual, and

(ii)

the denominator is the amount referred to in paragraph (

a) of the description of F, divided by 0.122; and

(iv)

the description of A in subsection 122.61(1) of the Income Tax Act is amended by striking out “and” at the end of the description of E, by adding “and” at the end of the description of Q and by adding the following after the description of Q:

is the amount determined for C;

(

c) the following amendments come into force on July 1, 2018:

(

i) the first formula in subsection 122.61(1) of the Income Tax Act is replaced by the following:

(A + M)/12 (ii)

the formula in the description of A in subsection 122.61(1) of the Income Tax Act is replaced by the following:

E − Q (iii)

the description of C in subsection 122.61(1) of the Income Tax Act is repealed, and

(iv)

the description of A in subsection 122.61(1) of the Income Tax Act is amended by striking out “and” at the end of the description of Q, by adding “and” at the end of the description of E and by repealing the description of R.

(3) If this Act receives royal assent on July 1, 2017, then

section 30 of this Act is deemed to have come into force before subsection 29(9) of the other Act has produced its effects.

PART 2

R.S., c. E-15

Amendments to the Excise Tax Act (GST/HST Measures)

(1) The definition taxi business in subsection 123(1) of the Excise Tax Act is replaced by the following:

taxi business means

(

a) a business carried on in Canada of transporting passengers by taxi or other similar vehicle for fares that are regulated under the laws of Canada or a province, or

(

b) a business carried on in Canada by a person of transporting passengers for fares by motor vehicle — being a vehicle that would be an automobile , as defined in subsection 248(1) of the Income Tax Act , if that definition were read without reference to “a motor vehicle acquired primarily for use as a taxi,” in its paragraph (

c) and without reference to its paragraph (e) — within a particular municipality and its environs if the transportation is arranged or coordinated through an electronic platform or system, other than

(

i) the part of the business that does not involve the making of taxable supplies by the person,

(ii)

the part of the business that is the operation of a sightseeing service or the school transportation of elementary or secondary students, or

(iii)

a prescribed business or a prescribed activity of a business; ( entreprise de taxis )

(2) The portion of the definition short-term accommodation in subsection 123(1) of the Act before paragraph (

a) is replaced by the following:

short-term accommodation means a residential complex or a residential unit that is supplied to a recipient by way of lease, licence or similar arrangement for the purpose of its occupancy by an individual as a place of residence or lodging, if the period throughout which the individual is given continuous occupancy of the complex or unit is less than one month and, for the purposes of

section 252.4,

(3) Subsection (1) comes into force or is deemed to have come into force on July 1, 2017.

(4) Subsection (2) comes into force on January 1, 2018 but does not apply in respect of any rebate under

section 252.1 of the Act in respect of a supply made before that day.

(1) The portion of subsection 234(2) of the Act before paragraph (

a) is replaced by the following:

Deduction for rebate in respect of supplies to non-residents

(2) If, in the circumstances described in subsection 252(3) or 252.4(2) or (4), a registrant pays to, or credits in favour of, a person an amount on account of a rebate referred to therein, the registrant may deduct the amount in determining the net tax of the registrant for

(2) The portion of subsection 234(2.1) of the Act before paragraph (

a) is replaced by the following:

Late filing of information and adjustment for failure to file

(2.1) If a registrant is required to file prescribed information in accordance with subsection 252.4(5) in respect of an amount claimed as a deduction under subsection (2) in respect of an amount paid or credited on account of a rebate,

(3) The portion of paragraph 234(2.1)(

a) of the English version of the Act after subparagraph (ii) is replaced by the following:

the registrant shall, in determining the net tax for the reporting period of the registrant that includes the filing day, add an amount equal to interest, at the prescribed rate, on the amount claimed as a deduction under subsection (2) computed for the period beginning on the day on or before which the registrant was required to file the prescribed information under subsection 252.4(5) and ending on the filing day; and

(4) Paragraph 234(2.1)(

b) of the English version of the Act is replaced by the following:

(

b) in the case where the registrant fails to file the information before the particular day, the registrant shall, in determining the net tax for the reporting period of the registrant that includes the particular day, add an amount equal to the total of the amount claimed as a deduction under subsection (2) and interest, at the prescribed rate, on that amount computed for the period beginning on the day on or before which the registrant was required to file the information under subsection 252.4(5) and ending on the day on or before which the registrant is required under

section 238 to file a return for the reporting period of the registrant that includes the particular day.

(5) Subsections (1) to (4) come into force on January 1, 2018 but do not apply in respect of any amount paid or credited on account of a rebate under

section 252.1 of the Act in respect of a supply made before that day.

(1) Section 252.1 of the Act is repealed.

(2) Subsection (1) is deemed to have come into force on March 23, 2017 but does not apply in respect of any supply made on or before March 22, 2017 or in respect of any supply made after March 22, 2017 but before 2018 if all of the consideration for that supply is paid before 2018.

(1) The portion of

section 252.2 of the Act before paragraph (

a) is replaced by the following:

Restriction

252.2

A rebate shall not be paid under

section 252 to a person unless

(2) Paragraph 252.2(

a) of the Act is amended by adding “and” at the end of subparagraph (i), by striking out “and” at the end of subparagraph (ii) and by repealing subparagraph (iii).

(3) Section 252.2 of the Act is amended by adding “and” at the end of paragraph (d.1), by striking out “and” at the end of paragraph (

e) and by repealing paragraph (g).

(4) Subsections (1) to (3) come into force on January 1, 2018 but do not apply in respect of any rebate under

section 252.1 of the Act in respect of a supply made before that day.

(1) Section 252.4 of the Act is amended by adding the following before subsection (1):

Definitions

252.4

(0.1) The following

definitions apply in this section.

camping accommodation means a campsite at a recreational trailer park or campground (other than a campsite included in the definition short-term accommodation in subsection 123(1) or included in that part of a tour package that is not the taxable portion , as defined in subsection 163(3), of the tour package) that is supplied by way of lease, licence or similar arrangement for the purpose of its occupancy by an individual as a place of residence or lodging, if the period throughout which the individual is given continuous occupancy of the campsite is less than one month.

It includes water, electricity and waste disposal services, or the right to their use, if they are accessed by means of an outlet or hook-up at the campsite and are supplied with the campsite. ( emplacement de camping )

tour package has the same meaning as in subsection 163(3), but does not include a tour package that includes a convention facility or related convention supplies. ( voyage organisé )

(2) Subsection (1) is deemed to have come into force on March 23, 2017.

(1) The portion of

section 252.5 of the Act before paragraph (

a) is replaced by the following:

Liability for amount paid or credited

252.5

If, under

section 252 or 252.4, a registrant at a particular time pays to, or credits in favour of, a person an amount on account of a rebate and

(2) Subsection (1) comes into force on January 1, 2018 but does not apply in respect of any rebate under

section 252.1 of the Act in respect of a supply made before that day.

(1) Paragraph 2(

e) of

Part I of

Schedule VI to the Act is amended by striking out “and” at the end of subparagraph (ix), by adding “and” at the end of subparagraph (

x) and by adding the following after subparagraph (x):

(xi)

Naloxone and its salts,

(2) Subsection (1) is deemed to have come into force on March 22, 2016 except that it does not apply

(

a) to any supply made after March 21, 2016 but on or before March 22, 2017 if, on or before March 22, 2017, the supplier charged, collected or remitted any amount as or on account of tax under

Part IX of the Act in respect of the supply;

(

b) for the purposes of

section 6 of

Schedule VII to the Act, to goods imported after March 21, 2016 but on or before March 22, 2017 if, on or before March 22, 2017, any amount was paid as or on account of tax under

Part IX of the Act in respect of the importation; or

(

c) for the purposes of

section 15 of

Part I of

Schedule X to the Act, to property brought into a participating province after March 21, 2016 but on or before March 22, 2017 if, on or before March 22, 2017, any amount was paid as or on account of tax under

Part IX of the Act in respect of the bringing into the province.

PART 3

Amendments to the Excise Act , the Excise Act, 2001 and the Economic Action Plan 2014 Act, No. 1

R.S., c. E-14

Excise Act

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

section 170.1:

Definition of inflationary adjusted year

170.2

(1) In this section, inflationary adjusted year means 2018 and every year after that year.

Annual adjustments

(2) Each rate of duty set out in

Part II of the

schedule applicable in respect of a hectolitre of beer or malt liquor is to be adjusted on April 1 of an inflationary adjusted year so that the rate is equal to the greater of

(

a) the rate determined by the formula

A × B where A

is the rate of duty applicable to the hectolitre on March 31 of the inflationary adjusted year, and

is the amount, rounded to the nearest one-thousandth, or, if the amount is equidistant from two consecutive one-thousandths, rounded to the higher one-thousandth, determined by the formula

C/D where C

is the Consumer Price Index for the 12-month period ending on September 30 of the particular year preceding the inflationary adjusted year, and

is the Consumer Price Index for the 12-month period ending on September 30 of the year preceding the particular year, and

(

b) the rate of duty referred to in the description of A in paragraph (a).

Rounding

(3) The adjusted rate determined under subsection (2) is to be rounded

(

a) in the case of the rates set out in sections 1 and 2 of

Part II of the schedule, to the nearest one-hundredth or, if the adjusted rate is equidistant from two consecutive one-hundredths, to the higher one-hundredth; and

(

b) in the case of the rate set out in

section 3 of

Part II of the schedule, to the nearest one-thousandth or, if the adjusted rate is equidistant from two consecutive one-thousandths, to the higher one-thousandth.

Consumer Price Index

(4) In this section, the Consumer Price Index for any 12-month period is the result arrived at by

(

a) aggregating the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act , for each month in that period;

(

b) dividing the aggregate obtained under paragraph (

a) by 12; and

(

c) rounding the result obtained under paragraph (

b) to the nearest one-thousandth or, if the result obtained is equidistant from two consecutive one-thousandths, to the higher one-thousandth.

(2) Subsection (1) is deemed to have come into force on March 23, 2017.

(1) The

schedule to the Act is amended by replacing the references after the heading “SCHEDULE” with the following:

(Sections 135, 170, 170.1, 170.2, 185 and 200)

(2) Subsection (1) is deemed to have come into force on March 23, 2017.

(1) Parts II and II.1 of the

schedule to the Act are replaced by the following:

II. Beer

Per hectolitre of beer or malt liquor containing more than 2.5% absolute ethyl alcohol by volume,

(a)

$31.84; or

(

b) if the rate referred to in paragraph (

a) has been adjusted under subsection 170.2(2), the adjusted rate.

Per hectolitre of beer or malt liquor containing more than 1.2% absolute ethyl alcohol by volume but not more than 2.5% absolute ethyl alcohol by volume,

(a)

$15.92; or

(

b) if the rate referred to in paragraph (

a) has been adjusted under subsection 170.2(2), the adjusted rate.

Per hectolitre of beer or malt liquor containing not more than 1.2% absolute ethyl alcohol by volume,

(a)

$2.643; or

(

b) if the rate referred to in paragraph (

a) has been adjusted under subsection 170.2(2), the adjusted rate.

II.1 Canadian Beer

Per hectolitre of the first 2 000 hectolitres of beer and malt liquor brewed in Canada,

(

a) if it contains more than 2.5% absolute ethyl alcohol by volume, 10% of the rate of duty applicable to a hectolitre of beer or malt liquor under

section 1 of

Part II;

(

b) if it contains more than 1.2% absolute ethyl alcohol by volume but not more than 2.5% absolute ethyl alcohol by volume, 10% of the rate of duty applicable to a hectolitre of beer or malt liquor under

section 2 of

Part II; and

(

c) if it contains not more than 1.2% absolute ethyl alcohol by volume, 10% of the rate of duty applicable to a hectolitre of beer or malt liquor under

section 3 of

Part II.

Per hectolitre of the next 3 000 hectolitres of beer and malt liquor brewed in Canada,

(

a) if it contains more than 2.5% absolute ethyl alcohol by volume, 20% of the rate of duty applicable to a hectolitre of beer or malt liquor under

section 1 of

Part II;

(

b) if it contains more than 1.2% absolute ethyl alcohol by volume but not more than 2.5% absolute ethyl alcohol by volume, 20% of the rate of duty applicable to a hectolitre of beer or malt liquor under

section 2 of

Part II; and

(

c) if it contains not more than 1.2% absolute ethyl alcohol by volume, 20% of the rate of duty applicable to a hectolitre of beer or malt liquor under

section 3 of

Part II.

Per hectolitre of the next 10 000 hectolitres of beer and malt liquor brewed in Canada,

(

a) if it contains more than 2.5% absolute ethyl alcohol by volume, 40% of the rate of duty applicable to a hectolitre of beer or malt liquor under

section 1 of

Part II;

(

b) if it contains more than 1.2% absolute ethyl alcohol by volume but not more than 2.5% absolute ethyl alcohol by volume, 40% of the rate of duty applicable to a hectolitre of beer or malt liquor under

section 2 of

Part II; and

(

c) if it contains not more than 1.2% absolute ethyl alcohol by volume, 40% of the rate of duty applicable to a hectolitre of beer or malt liquor under

section 3 of

Part II.

Per hectolitre of the next 35 000 hectolitres of beer and malt liquor brewed in Canada,

(

a) if it contains more than 2.5% absolute ethyl alcohol by volume, 70% of the rate of duty applicable to a hectolitre of beer or malt liquor under

section 1 of

Part II;

(

b) if it contains more than 1.2% absolute ethyl alcohol by volume but not more than 2.5% absolute ethyl alcohol by volume, 70% of the rate of duty applicable to a hectolitre of beer or malt liquor under

section 2 of

Part II; and

(

c) if it contains not more than 1.2% absolute ethyl alcohol by volume, 70% of the rate of duty applicable to a hectolitre of beer or malt liquor under

section 3 of

Part II.

Per hectolitre of the next 25 000 hectolitres of beer and malt liquor brewed in Canada,

(

a) if it contains more than 2.5% absolute ethyl alcohol by volume, 85% of the rate of duty applicable to a hectolitre of beer or malt liquor under

section 1 of

Part II;

(

b) if it contains more than 1.2% absolute ethyl alcohol by volume but not more than 2.5% absolute ethyl alcohol by volume, 85% of the rate of duty applicable to a hectolitre of beer or malt liquor under

section 2 of

Part II; and

(

c) if it contains not more than 1.2% absolute ethyl alcohol by volume, 85% of the rate of duty applicable to a hectolitre of beer or malt liquor under

section 3 of

Part II.

The rates determined under

section 5 are to be rounded

(

a) in the case of a rate determined under paragraph 5(

a) or (b), to the nearest one-thousandth or, if the rate is equidistant from two consecutive one-thousandths, to the higher one-thousandth; and

(

b) in the case of a rate determined under paragraph 5(c), to the nearest ten-thousandth or, if the rate is equidistant from two consecutive ten-thousandths, to the higher ten-thousandth.

(2) Subsection (1) is deemed to have come into force on March 23, 2017.

2002, c. 22

Excise Act, 2001

(1) Paragraph (

a) of the definition adjustment day in

section 58.1 of the Excise Act, 2001 is replaced by the following:

(

a) March 23, 2017; or

(2) The portion of the definition taxed cigarettes in

section 58.1 of the Act before paragraph (

a) is replaced by the following:

taxed cigarettes of a person means cigarettes in respect of which duty has been imposed under

section 42 before March 23, 2017 at the rate set out in paragraph 1(

a) of

Schedule 1, as it read on March 22, 2017, and that, at the beginning of March 23, 2017,

(3) The portion of the definition taxed cigarettes in

section 58.1 of the Act before paragraph (a), as enacted by subsection (2), is replaced by the following:

taxed cigarettes of a person means cigarettes in respect of which duty has been imposed under

section 42 or 53 at the rate applicable on the day before an adjustment day other than March 23, 2017, and that, at the beginning of the adjustment day,

(4) Subsections (1) and (2) are deemed to have come into force on March 23, 2017.

(5) Subsection (3) comes into force on November 30, 2019.

(1) Subsection 58.2(1) of the Act is replaced by the following:

Imposition of tax — 2017 increase

58.2

(1) Subject to

section 58.3, every person shall pay to Her Majesty a tax on all taxed cigarettes of the person held at the beginning of March 23, 2017 at the rate of $0.00265 per cigarette.

(2) Subsection (1) is deemed to have come into force on March 23, 2017.

(1) Paragraph 58.5(1)(

a) of the Act is replaced by the following:

(

a) in the case of the tax imposed under subsection 58.2(1), May 31, 2017; or

(2) Subsection (1) is deemed to have come into force on March 23, 2017.

(1) Paragraph 58.6(1)(

a) of the Act is replaced by the following:

(

a) in the case of the tax imposed under subsection 58.2(1), May 31, 2017; or

(2) Subsection (1) is deemed to have come into force on March 23, 2017.

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

section 123:

Definitions

123.1

(1) The following

definitions apply in this section.

inflationary adjusted year means 2018 and every year after that year. ( année inflationniste )

reference year means a 12-month period that begins on April 1 of a year and ends on March 31 of the following year. ( année de référence )

Annual adjustments

(2) Each rate of duty set out in

Schedule 4 applicable in respect of a litre of absolute ethyl alcohol or in respect of a litre of spirits is to be adjusted on April 1 of an inflationary adjusted year so that the rate is equal to the greater of

(

a) the rate determined by the formula

A × B where A

is the rate of duty applicable to the litre of absolute ethyl alcohol or the litre of spirits, as the case may be, on March 31 of the inflationary adjusted year, and

is the amount, rounded to the nearest one-thousandth, or, if the amount is equidistant from two consecutive one-thousandths, rounded to the higher one-thousandth, determined by the formula

C/D where C

is the Consumer Price Index for the 12-month period ending on September 30 of the particular year preceding the inflationary adjusted year, and

is the Consumer Price Index for the 12-month period ending on September 30 of the year preceding the particular year, and

(

b) the rate of duty referred to in the description of A in paragraph (a).

Rounding

(3) The adjusted rate determined under subsection (2) is to be rounded to the nearest one-thousandth or, if the adjusted rate is equidistant from two consecutive one-thousandths, to the higher one-thousandth.

Consumer Price Index

(4) In this section, the Consumer Price Index for any 12-month period is the result arrived at by

(

a) aggregating the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act , for each month in that period;

(

b) dividing the aggregate obtained under paragraph (

a) by 12; and

(

c) rounding the result obtained under paragraph (

b) to the nearest one-thousandth or, if the result obtained is equidistant from two consecutive one-thousandths, to the higher one-thousandth.

Application of adjusted rate

(5) If duties on spirits are imposed in a reference year but become payable in another reference year that begins in an inflationary adjusted year, those duties are determined at the rate of duty as adjusted under subsection (2) on the first day of the other reference year.

(2) Subsection (1) is deemed to have come into force on March 23, 2017.

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

section 135:

Definitions

135.1

(1) The following

definitions apply in this section.

inflationary adjusted year means 2018 and every year after that year. ( année inflationniste )

reference year means a 12-month period that begins on April 1 of a year and ends on March 31 of the following year. ( année de référence )

Annual adjustments

(2) Each rate of duty set out in

Schedule 6 applicable in respect of a litre of wine is to be adjusted on April 1 of an inflationary adjusted year so that the rate is equal to the greater of

(

a) the rate determined by the formula

A × B where A

is the rate of duty applicable to the litre on March 31 of the inflationary adjusted year, and

is the amount, rounded to the nearest one-thousandth, or, if the amount is equidistant from two consecutive one-thousandths, rounded to the higher one-thousandth, determined by the formula

C/D where C

is the Consumer Price Index for the 12-month period ending on September 30 of the particular year preceding the inflationary adjusted year, and

is the Consumer Price Index for the 12-month period ending on September 30 of the year preceding the particular year, and

(

b) the rate of duty referred to in the description of A in paragraph (a).

Rounding

(3) The adjusted rate determined under subsection (2) is to be rounded to the nearest one-thousandth or, if the adjusted rate is equidistant from two consecutive one-thousandths, to the higher one-thousandth.

Consumer Price Index

(4) In this section, the Consumer Price Index for any 12-month period is the result arrived at by

(

a) aggregating the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act , for each month in that period;

(

b) dividing the aggregate obtained under paragraph (

a) by 12; and

(

c) rounding the result obtained under paragraph (

b) to the nearest one-thousandth or, if the result obtained is equidistant from two consecutive one-thousandths, to the higher one-thousandth.

Application of adjusted rate

(5) If duties on wine are imposed in a reference year but become payable in another reference year that begins in an inflationary adjusted year, those duties are determined at the rate of duty as adjusted under subsection (2) on the first day of the other reference year.

(2) Subsection (1) is deemed to have come into force on March 23, 2017.

(1) Subparagraphs 216(2)(a)(

i) to (iv) of the Act are replaced by the following:

(i)

$0.22 multiplied by the number of cigarettes to which the offence relates,

(ii)

$0.22 multiplied by the number of tobacco sticks to which the offence relates,

(iii)

$0.27 multiplied by the number of grams of manufactured tobacco other than cigarettes or tobacco sticks to which the offence relates, and

(iv)

$0.42 multiplied by the number of cigars to which the offence relates, and

(2) Subparagraphs 216(3)(a)(iii) and (iv) of the Act are replaced by the following:

(iii)

$0.40 multiplied by the number of grams of manufactured tobacco other than cigarettes or tobacco sticks to which the offence relates, and

(iv)

$0.84 multiplied by the number of cigars to which the offence relates, and

(1) Subparagraphs 217(2)(a)(

i) and (ii) of the Act are replaced by the following:

(i)

$11.930 multiplied by the number of litres of absolute ethyl alcohol in the spirits to which the offence relates,

(ii)

$0.63 multiplied by the number of litres of wine to which the offence relates, and

(2) Subparagraphs 217(2)(a)(

i) and (ii) of the Act, as enacted by subsection (1), are replaced by the following:

(

i) the number of litres of absolute ethyl alcohol in the spirits to which the offence relates multiplied by the rate of duty per litre of absolute ethyl alcohol applicable under

section 1 of

Schedule 4 at the time the offence was committed,

(ii)

the number of litres of wine to which the offence relates multiplied by the rate of duty applicable to a litre of wine under paragraph (

c) of

Schedule 6 at the time the offence was committed, and

(3) Subparagraphs 217(3)(a)(

i) and (ii) of the Act are replaced by the following:

(i)

$23.860 multiplied by the number of litres of absolute ethyl alcohol in the spirits to which the offence relates,

(ii)

$1.26 multiplied by the number of litres of wine to which the offence relates, and

(4) Subparagraphs 217(3)(a)(

i) and (ii) of the Act, as enacted by subsection (3), are replaced by the following:

(

i) the number of litres of absolute ethyl alcohol in the spirits to which the offence relates multiplied by 200% of the rate of duty per litre of absolute ethyl alcohol applicable under

section 1 of

Schedule 4 at the time the offence was committed,

(ii)

the number of litres of wine to which the offence relates multiplied by 200% of the rate of duty applicable to a litre of wine under paragraph (

c) of

Schedule 6 at the time the offence was committed, and

(5) Subsections (2) and (4) come into force on April 1, 2018.

(1) Subparagraphs 218(2)(a)(

i) and (ii) of the Act are replaced by the following:

(i)

$23.860 multiplied by the number of litres of absolute ethyl alcohol in the spirits to which the offence relates, and

(ii)

$1.26 multiplied by the number of litres of wine to which the offence relates, and

(2) Subparagraphs 218(2)(a)(

i) and (ii) of the Act, as enacted by subsection (1), are replaced by the following:

(

i) the number of litres of absolute ethyl alcohol in the spirits to which the offence relates multiplied by 200% of the rate of duty per litre of absolute ethyl alcohol applicable under

section 1 of

Schedule 4 at the time the offence was committed, and

(ii)

the number of litres of wine to which the offence relates multiplied by 200% of the rate of duty applicable to a litre of wine under paragraph (

c) of

Schedule 6 at the time the offence was committed, and

(3) Subparagraphs 218(3)(a)(

i) and (ii) of the Act are replaced by the following:

(i)

$35.790 multiplied by the number of litres of absolute ethyl alcohol in the spirits to which the offence relates, and

(ii)

$1.89 multiplied by the number of litres of wine to which the offence relates, and

(4) Subparagraphs 218(3)(a)(

i) and (ii) of the Act, as enacted by subsection (3), are replaced by the following:

(

i) the number of litres of absolute ethyl alcohol in the spirits to which the offence relates multiplied by 300% of the rate of duty per litre of absolute ethyl alcohol applicable under

section 1 of

Schedule 4 at the time the offence was committed, and

(ii)

the number of litres of wine to which the offence relates multiplied by 300% of the rate of duty applicable to a litre of wine under paragraph (

c) of

Schedule 6 at the time the offence was committed, and

(5) Subsections (2) and (4) come into force on April 1, 2018.

Paragraphs 240(

a) to (

c) of the Act are replaced by the following:

(a)

$0.41 per cigarette that was removed in contravention of that subsection,

(b)

$0.41 per tobacco stick that was removed in contravention of that subsection, and

(c)

$508.81 per kilogram of manufactured tobacco, other than cigarettes and tobacco sticks, that was removed in contravention of that subsection.

(1) Section 242 of the Act is replaced by the following:

Contravention of

section 72

Every person who contravenes

section 72 is liable to a penalty equal to $1.26 per litre of wine to which the contravention relates.

(2) Section 242 of the Act, as enacted by subsection (1), is replaced by the following:

Contravention of

section 72

Every person who contravenes

section 72 is liable to a penalty equal to the number of litres of wine to which the contravention relates multiplied by 200% of the rate of duty applicable to a litre of wine under paragraph (

c) of

Schedule 6 at the time the offence was committed.

(3) Subsection (2) comes into force on April 1, 2018.

(1) Paragraph 243(1)(

b) of the Act is replaced by the following:

(

b) if the contravention relates to wine, $1.26 per litre of that wine.

(2) Paragraph 243(1)(

b) of the Act, as enacted by subsection (1), is replaced by the following:

(

b) if the contravention relates to wine, the number of litres of that wine multiplied by 200% of the rate of duty applicable to a litre of wine under paragraph (

c) of

Schedule 6 at the time the offence was committed.

(3) Paragraph 243(2)(

b) of the Act is replaced by the following:

(

b) if the contravention relates to wine, $0.63 per litre of that wine.

(4) Paragraph 243(2)(

b) of the Act, as enacted by subsection (3), is replaced by the following:

(

b) if the contravention relates to wine, the number of litres of that wine multiplied by the rate of duty applicable to a litre of wine under paragraph (

c) of

Schedule 6 at the time the offence was committed.

(5) Subsections (2) and (4) come into force on April 1, 2018.

(1) Paragraph 243.1(

b) of the Act is replaced by the following:

(

b) if the contravention relates to wine, $0.63 per litre of that wine.

(2) Paragraph 243.1(

b) of the Act, as enacted by subsection (1), is replaced by the following:

(

b) if the contravention relates to wine, the number of litres of that wine multiplied by the rate of duty applicable to a litre of wine under paragraph (

c) of

Schedule 6 at the time the offence was committed.

(3) Subsection (2) comes into force on April 1, 2018.

(1) Paragraph 1(

a) of

Schedule 1 to the Act is replaced by the following:

(a)

$0.53900; or

(2) Subsection (1) is deemed to have come into force on March 23, 2017.

(1) Paragraph 2(

a) of

Schedule 1 to the Act is replaced by the following:

(a)

$0.10780; or

(2) Subsection (1) is deemed to have come into force on March 23, 2017.

(1) Paragraph 3(

a) of

Schedule 1 to the Act is replaced by the following:

(a)

$6.73750; or

(2) Subsection (1) is deemed to have come into force on March 23, 2017.

(1) Paragraph 4(

a) of

Schedule 1 to the Act is replaced by the following:

(a)

$23.46235; or

(2) Subsection (1) is deemed to have come into force on March 23, 2017.

(1) Subparagraph (a)(

i) of

Schedule 2 to the Act is replaced by the following:

(i)

$0.08434, or

(2) Subsection (1) is deemed to have come into force on March 23, 2017.

(1) Subparagraph (b)(

i) of

Schedule 2 to the Act is replaced by the following:

(

i) if the rate referred to in subparagraph (a)(

i) has not been adjusted under subsection 43.1(2), 84%, or

(2) Subsection (1) is deemed to have come into force on March 23, 2017.

(1) Schedule 4 to the Act is replaced by the following:

SCHEDULE 4 (Sections 122, 123, 123.1 and 159.1)

Rates of Duty on Spirits

Spirits: per litre of absolute ethyl alcohol contained in the spirits,

(a)

$11.930; or

(

b) if the rate referred to in paragraph (

a) has been adjusted under subsection 123.1(2), the adjusted rate.

Spirits containing not more than 7% absolute ethyl alcohol by volume: per litre,

(a)

$0.301; or

(

b) if the rate referred to in paragraph (

a) has been adjusted under subsection 123.1(2), the adjusted rate.

(2) Schedule 4 to the Act, as enacted by subsection (1), is amended by replacing the references after the heading “SCHEDULE 4” with the following:

(Sections 122, 123, 123.1, 159.1, 217 and 218)

(3) Subsection (1) applies in respect of duties that become payable at a time that is after March 22, 2017.

(4) Subsection (2) comes into force on April 1, 2018.

(1) Schedule 6 to the Act is replaced by the following:

SCHEDULE 6 (Sections 134, 135, 135.1 and 159.1)

Rates of Duty on Wine

Wine:

(

a) in the case of wine that contains not more than 1.2% of absolute ethyl alcohol by volume, per litre,

(i)

$0.0209, or

(ii)

if the rate referred to in subparagraph (

i) has been adjusted under subsection 135.1(2), the adjusted rate;

(

b) in the case of wine that contains more than 1.2% of absolute ethyl alcohol by volume but not more than 7% of absolute ethyl alcohol by volume, per litre,

(i)

$0.301, or

(ii)

if the rate referred to in subparagraph (

i) has been adjusted under subsection 135.1(2), the adjusted rate; and

(

c) in the case of wine that contains more than 7% of absolute ethyl alcohol by volume, per litre,

(i)

$0.63, or

(ii)

if the rate referred to in subparagraph (

i) has been adjusted under subsection 135.1(2), the adjusted rate.

(2) Schedule 6 to the Act, as enacted by subsection (1), is amended by replacing the references after the heading “SCHEDULE 6” with the following:

(Sections 134, 135, 135.1, 159.1, 217, 218, 242, 243 and 243.1)

(3) Subsection (1) applies in respect of duties that become payable at a time that is after March 22, 2017.

(4) Subsection (2) comes into force on April 1, 2018.

2014, c. 20

Economic Action Plan 2014 Act, No. 1

(1) Subsection 69(3) of the Economic Action Plan 2014 Act, No. 1 is repealed.

(2) Subsection 69(5) of the Act is repealed.

Application

For the purposes of applying the provisions of the Customs Act and the Excise Act that provide for the payment of, or the liability to pay, interest in respect of any amount, the amount is to be determined and interest is to be computed on it as though sections 44 and 58 to 63 and subsections 64 (1) and 65 (1) had been assented to on March 23, 2017.

PART 4

Various Measures

DIVISION 1

R.S., c. S-15

Special Import Measures Act

Amendments to the Act

(1) The definition margin of dumping in subsection 2(1) of the Special Import Measures Act is replaced by the following:

margin of dumping , in relation to any goods, means, subject to sections 30.2 and 30.3, the amount by which the normal value of the goods exceeds the export price of the goods; ( marge de dumping )

(2) Paragraphs (

a) and (

b) of the definition order or finding in subsection 2(1) of the Act is replaced by the following:

(

a) means an order or finding made by the Tribunal under

section 43 or 44 that has not been rescinded under any of sections 76.01 to 76.1 and subsection 91(3) but, if the order or finding has been amended one or more times under any of

section 75.3 , subsections 75.4 (8) and 75.6 (7) and sections 76.01 to 76.1, as it was last amended, and

(

b) includes, for the purposes of sections 3 to 6 and 76 to 76.1, an order or finding made by the Tribunal under subsection 91(3) that has not been rescinded under any of sections 76.01 to 76.1 but, if the order or finding has been amended one or more times under any of

section 75.3 , subsections 75.4 (8) and 75.6 (7) and sections 76.01 to 76.1, as it was last amended; ( ordonnance ou conclusions )

(3) Subsection 2(1) of the Act is amended by adding the following in alphabetical order:

scope ruling means a ruling made under subsection 66(1) as to whether certain goods are subject to an order of the Governor in Council imposing a countervailing duty made under

section 7, an order or finding of the Tribunal or an undertaking in respect of which an investigation has been suspended under subparagraph 50(a)(iii); ( décision sur la porté

e) Section 3 of the Act is amended by adding the following after subsection (1):

Duties — circumvention

(1.1) A duty shall be levied, collected and paid on all dumped and subsidized goods imported into Canada in respect of which the Tribunal has made an order — amending an order or finding, before the release of the goods — to the effect that the importation of goods of the same description constitutes circumvention, as follows:

(

a) in the case of dumped goods, an anti-dumping duty in an amount that is equal to the margin of dumping of the imported goods; and

(

b) in the case of subsidized goods, a countervailing duty in an amount that is equal to the amount of subsidy on the imported goods.

Duties — circumvention investigation

(1.2) A duty shall be levied, collected and paid on all dumped and subsidized goods imported into Canada, after the initiation of an anti-circumvention investigation under

section 72 , in respect of which the Tribunal has made an order — amending an order or finding after the release of the goods — to the effect that the importation of goods of the same description constitutes circumvention, as follows:

(

a) in the case of dumped goods, an anti-dumping duty in an amount that is equal to the margin of dumping of the imported goods; and

(

b) in the case of subsidized goods, a countervailing duty in an amount that is equal to the amount of subsidy on the imported goods.

Paragraph 6(

c) of the Act is replaced by the following:

(

c) in respect of which the President has made a specification under clause 41(1)(b)(ii)(C),

The portion of subsection 9.2(1) of the Act before paragraph (

a) is replaced by the following:

Duty ceases if final determination set aside by court

9.2

(1) If duty is leviable, collectable and payable (in this

section referred to as “payable”) under this Act under an order or finding of the Tribunal on goods imported into Canada, and proceedings are commenced in the Federal Court of Appeal by an application under

section 96.1 to review and set aside the final determination of the President under paragraph 41(1)(

b) on which the order or finding is based, duty continues, despite any order or decision that may be made or given in the course of the proceedings, to be so payable under the order or finding on imported goods of the same description as those goods during the course of the proceedings and after they are finally disposed of, unless the final disposition of the proceedings results in the final determination being set aside or being set aside in relation to particular goods, or the President recommencing the investigation and terminating it under paragraph 41(1)(a), in which case

The portion of subsection 9.21(1) of the Act before paragraph (

a) is replaced by the following:

Duty ceases if investigation terminated after review

9.21

(1) If duty is leviable, collectable and payable (in this

section referred to as “payable”) under this Act under an order or finding of the Tribunal on goods of a NAFTA country imported into Canada, and a review is requested under

Part I.1 of the final determination of the President under paragraph 41(1)(

b) on which the order or finding is based, duty continues, despite any order or decision that may be made or given in the course of proceedings under that Part, to be so payable under the order or finding on imported goods of the same description as those goods during the course of the proceedings and after they are finally disposed of, unless the final disposition of the proceedings results in the President recommencing the investigation and terminating it under paragraph 41(1)(a), in which case

The portion of

section 9.3 of the Act before paragraph (

a) is replaced by the following:

Duty ceases if investigation terminated after review

9.3

If duty is leviable, collectable and payable (in this

section referred to as “payable”) under this Act under an order or finding of the Tribunal on goods of the United States imported into Canada, and a review is requested under

Part II of the final determination of the President under paragraph 41(1)(

b) on which the order or finding is based, duty continues, despite any order or decision that may be made or given in the course of proceedings under that Part, to be so payable under the order or finding on imported goods of the same description as those goods during the course of the proceedings and after they are finally disposed of, unless the final disposition of the proceedings results in the President recommencing the investigation and terminating it under paragraph 41(1)(a), in which case

(1) The portion of subsection 13.2(1) of the Act before paragraph (

a) is replaced by the following:

Request for review

13.2

(1) An exporter to Canada or producer of any goods to which an order or finding referred to in subsection 3(1) applies may request that the President review the normal value, export price or amount of subsidy in relation to those goods if the exporter or producer

(2) Subsections 13.2(2) and (3) of the Act are replaced by the following:

Request for review

(1.1) An exporter to Canada of any goods to which an order or finding referred to in subsection 3(1.1) or (1.2) applies may request that the President review the normal value, export price or amount of subsidy in relation to those goods if the exporter has not been requested to provide information in relation to those goods, or in relation to any goods that are of the same description as those goods for the purposes of this Act, for the purposes of determining their normal value, export price or amount of subsidy.

Form of request

(2) A request under subsection (1) or (1.1) shall be made in the prescribed manner and form and shall contain the prescribed information.

Review

(3) If the President receives a request under subsection (1), the President shall initiate a review, on an expedited basis, of the normal value, export price or amount of subsidy, as the case may be, and shall, on completion of the review, either confirm or amend the value, price or amount.

Review

(3.1) If the President receives a request under subsection (1.1), the President shall initiate a review of the normal value, export price or amount of subsidy in respect of goods to which an order or finding referred to in subsection 3(1.1) or (1.2) applies, as the case may be.

(1) Subsection 16(2) of the Act is amended by striking out “and” at the end of paragraph (a), by adding “and” at the end of paragraph (

b) and by adding the following after paragraph (b):

(

c) any sale of like goods for use in the country of export by the exporter to a purchaser if, in the opinion of the President, a particular market situation exists which does not permit a proper comparison with the sale of the goods to the importer in Canada.

(2) Section 16 of the Act is amended by adding the following after subsection (2):

Paragraph (2)(c)

(2.1) For the purposes of paragraph (2)(c), a particular market situation may be found to exist in respect of any goods of a particular exporter or of a particular country, as is appropriate in the circumstances.

Section 30.1 of the Act is repealed.

The portion of subsection 35(1) of the Act before paragraph (

b) is replaced by the following:

Termination of investigation or inquiry

(1) The President shall act under subsection (2) and the Tribunal shall act under subsection (3) if, at any time before the President makes a preliminary determination under subsection 38(1) in respect of goods that are the subject of the investigation,

(

a) the President is satisfied in respect of some or all of those goods that the actual and potential volume of goods of a country or countries is negligible; or

Subsection 38(1.1) of the Act is replaced by the following:

Insignificant margin or amount

(1.1) The President may in making a preliminary determination under subsection (1), using the information available to him or her at that time, make the determination that the margin of dumping of, or the amount of subsidy on, any goods of a particular exporter is insignificant.

Subsections 41(1) and (2) of the Act are replaced by the following:

Final determination or termination

(1) Within 90 days after making a preliminary determination under subsection 38(1), the President shall

(

a) terminate the investigation in respect of any goods of a particular exporter if, on the available evidence, the President is satisfied that there has been no dumping or subsidizing of the goods or that the margin of dumping of, or amount of subsidy on, those goods is insignificant; and

(

b) make a final determination of dumping or subsidizing in respect of the goods that are the subject of the investigation and for which the investigation has not been terminated under paragraph (

a) if, on the available evidence, the President is satisfied that there has been dumping or subsidizing and the President shall specify, in relation to each exporter of goods in respect of which the investigation is made, as follows:

(

i) in the case of dumped goods, the goods to which the determination applies and the margin of dumping of the goods, and

(ii)

in the case of subsidized goods,

(

A) the goods to which the determination applies,

(

B) the amount of subsidy on the goods, and

(

C) subject to subsection (2), if the whole or any part of the subsidy on the goods is a prohibited subsidy, the amount of the prohibited subsidy on the goods.

Exception

(2) The President shall not specify anything under clause (1)(b)(ii)(

C) if the President is of the opinion that, having regard to the country that is providing the export subsidy, the nature of the goods and the circumstances under which the export subsidy is provided, provision of the export subsidy in relation to those goods is not inconsistent with that country’s obligations under the international agreement known as the General Agreement on Tariffs and Trade, 1994.

(1) The portion of subsection 41.1(1) of the Act before paragraph (

a) is replaced by the following:

Action on final determination or decision referred back by Court

41.1

(1) If a decision under paragraph 41(1)(

a) or a final determination under paragraph 41(1)(

b) is set aside and the matter referred back to the President on an application under

section 96.1, the President shall

(2) The portion of subsection 41.1(2) of the Act before paragraph (

a) is replaced by the following:

Action on final determination or decision referred back by panel

(2) If a decision under paragraph 41(1)(

a) or a final determination under paragraph 41(1)(

b) is referred back to the President under subsection 77.015(3) or (4), 77.019(5), 77.15(3) or (4) or 77.19(4), the President shall

(1) The portion of paragraph 42(1)(

c) of the Act before subparagraph (

i) is replaced by the following:

(

c) in the case of any subsidized goods in respect of which a specification has been made under clause 41(1)(b)(ii)(

C) and to which the preliminary determination applies as to whether

(2) Section 42 of the Act is amended by adding the following after subsection (3):

Application of paragraph (3)(a)

(3.1) For the purposes of paragraph (3)(a),

(

a) the margin of dumping in relation to goods of a particular country is the weighted average of the margins of dumping determined in accordance with

section 30.2; and

(

b) the amount of subsidy in relation to goods of a particular country is the weighted average of the amounts of subsidy determined in accordance with

section 30.4.

(3) Section 42 of the Act is amended by adding the following after subsection (6):

Application

(7) For the purposes of this section, dumped or subsidized goods do not include goods of an exporter in respect of which the margin of dumping or amount of subsidy is insignificant.

Paragraph 49(2)(

b) of the Act is replaced by the following:

(

b) unless the President has made a preliminary determination under subsection 38(1); or

Paragraph 52(1.1)(

d) of the Act is replaced by the following:

(

d) terminate the undertaking or undertakings in respect of those goods, and

The Act is amended by adding the following after

section 55:

Determination of circumvention

55.1

(1) If the Tribunal has made an order described in subsection 3(1.2) with respect to the goods to which the determination of circumvention applies, the President shall cause a designated officer to determine, not later than six months after the date of the order,

(

a) in respect of any goods referred to in subsection (2), whether the goods are in fact goods of the same description as goods described in the order;

(

b) the normal value and export price of or the amount of subsidy on the goods; and

(

c) section 6 or 10 applies in respect of the goods, the amount of the export subsidy on the goods.

Application

(2) Subsection (1) applies only in respect of goods released on or after the day on which an anti-circumvention investigation is initiated under subsection 72 (1) and on or before the day on which the Tribunal makes an order under

section 75.3 in respect of the goods.

Re-determination

(3) A determination made under subsection (1) is deemed to be a re-determination by a designated officer under paragraph 57(b).

The portion of subsection 56(1) of the Act before paragraph (

a) is replaced by the following:

Determination final

(1) If, after the making of an order or finding of the Tribunal or an order of the Governor in Council imposing a countervailing duty under

section 7, any goods are imported into Canada, a determination by a designated officer

Section 60.1 of the Act is renumbered as subsection 60.1(1) and is amended by adding the following:

Notice —

section 59 re-determination

(2) The President shall publish a notice of any re-determination made under paragraph 59(1)(

a) or (

e) in respect of whether goods are of the same description as goods described in the order or finding, in the prescribed manner.

Subsections 61(2) and (3) of the Act are replaced by the following:

Appeal — scope ruling

(1.1) Interested persons may appeal a scope ruling made under

section 66 or, an amendment to such a ruling resulting from a review under subsection 67 (2) or, subject to

section 77.012 or 77.12 and only in respect of whether goods are of the same description as goods described in the order or finding, a re-determination made under paragraph 59(1)(

a) or (e), to the Tribunal by filing a notice of appeal in writing with the President and the Tribunal within 90 days after the day on which the decision was made.

Publication of notice of appeal

(2) Notice of the hearing of an appeal under subsection (1) or (1.1) must be published in the Canada Gazette at least 21 days before the day of the hearing, and any person who enters an appearance with the Tribunal at least seven days before the day of the hearing may be heard on the appeal.

Order or finding of the Tribunal

(3) On any appeal under subsection (1) or (1.1), the Tribunal may make such order or finding as the nature of the matter may require and, without limiting the generality of the foregoing, may declare what duty is payable or that no duty is payable on the goods with respect to which the appeal was taken, and an order, finding or declaration of the Tribunal is final and conclusive subject to further appeal as provided in

section 62.

Paragraph 62(1)(

c) of the Act is replaced by the following:

(

c) any person who entered an appearance in accordance with subsection 61(2),

The Act is amended by adding the following after

section 62:

Scope Ruling

Application

(1) Any interested person may submit an application to the President for a scope ruling with respect to any goods.

Application review period

(2) The President shall, within 30 days after the day on which he or she receives the application, determine if it should be rejected or if a scope proceeding should be initiated.

Extension of review period

(3) The President may extend the period set out in subsection (2) to 45 days.

Prescribed criteria

(4) The President shall reject the application if any criteria prescribing the rejection of an application apply.

Prescribed circumstances

(5) The President may reject an application in the prescribed circumstances.

Notice

(6) The President shall provide written notice to the applicant if their application is rejected under subsection (4) or (5) and give reasons for the rejection.

Incomplete application

(7) If an application is incomplete, the notice referred to in subsection (6) must identify the deficiencies in the application.

Initiation of scope proceeding

(8) If the President does not reject the application under subsection (4) or (5), the President shall initiate a scope proceeding with respect to the goods that are the subject of the application.

President’s initiative

The President may initiate a scope proceeding with respect to any goods at any time, on the President’s own initiative.

Notice of scope proceeding

If a scope proceeding is initiated under subsection 63 (8) or

section 64 , the President shall provide written notice to the applicant, if any, the government of the country of export, the exporter, the importer and the domestic producers.

Scope ruling

(1) Subject to subsections (2) and (3), on or before the one hundred twentieth day after the initiation of a scope proceeding under subsection 63 (8) or

section 64 , the President shall make a scope ruling and provide reasons for it.

Extension

(2) The President may, in the prescribed circumstances, extend the period set out in subsection (1) to 210 days.

Termination

(3) At any time before the President makes a scope ruling under subsection (1), the President may cause the scope proceeding to be terminated in the prescribed circumstances.

Scope ruling — effective date

(4) A scope ruling made under subsection (1) takes effect on the day on which it is made, unless the President indicates otherwise, and it includes any terms and conditions that the President considers appropriate.

Notice

(5) The President shall give written notice to the government of the country of export and the applicant, if any, of:

(

a) an extension given under subsection (2);

(

b) the making of a scope ruling under subsection (1); and

(

c) the termination of a scope proceeding under subsection (3).

Factors for ruling

(6) In making a scope ruling, the President shall take into account any prescribed factors and any other factor that the President considers relevant.

Ruling final

(7) A scope ruling made under subsection (1) is final and conclusive, subject to further appeal as provided in subsection 61(1.1).

Review of ruling

(1) For the purpose of giving effect to a decision of the Tribunal, the Federal Court of Appeal or the Supreme Court of Canada, the President shall review the scope ruling made under subsection 66 (1) to which that Tribunal or Court decision relates.

Review — prescribed circumstances

(2) The President may review a scope ruling made under subsection 66 (1) under prescribed circumstances.

Confirmation, amendment or revocation

(3) The President shall confirm, amend or revoke a scope ruling reviewed under subsection (1) or (2).

Written notice

(4) The President shall give written notice to the government of the country of export, the applicant, if any, and interested persons of a review undertaken under subsection (1) or (2).

Application of scope ruling

A scope ruling applies to

(

a) any determination or re-determination under sections 55, 56 and 57 and paragraphs 59(1)(

a) and (e); and

(

b) any decision relating to whether an undertaking in respect of which an investigation has been suspended under subparagraph 50(a)(iii) applies to goods.

Binding decision

Subject to the regulations, a scope ruling is binding with respect to any decision, determination or re-determination made by a designated officer or the President in respect of any goods to which that scope ruling applies that are released on or after its effective date.

Application —

section 55

(1) A scope ruling may be applied by the President to any determination made under

section 55 in respect of any goods which are accounted for under subsection 32(1), (3) or (5) of the Customs Act , no more than two years before the effective date of the scope ruling if, no later than 90 days after that effective date,

(

a) the importer of the goods

(

i) makes a written request in the prescribed form and manner and accompanied by the prescribed information, and

(ii)

has paid all duties owing on the goods; or

(

b) when the goods are goods of a NAFTA country, the government of that NAFTA country or, if they are of that NAFTA country, the producer, manufacturer or exporter of the goods makes a request as described in subparagraph (a)(i), whether or not the importer of the goods has paid all duties owing on the goods.

Application —

section 56

(2) A scope ruling may be applied by a designated officer to any determination made under

section 56 no more than two years before the ruling’s effective date if the determination has not previously been re-determined under

section 57 or 59 and, no later than 90 days after that date,

(

a) the importer of the goods

(

i) makes a written request in the prescribed form and manner and accompanied by the prescribed information, and

(ii)

has paid all duties owing on the goods; or

(

b) when the goods are goods of a NAFTA country, the government of that NAFTA country or, if they are of that NAFTA country, the producer, manufacturer or exporter of the goods makes a request as described in subparagraph (a)(i), whether or not the importer of the goods has paid all duties owing on the goods.

Application —

section 57 or 59

(3) A scope ruling may be applied by the President to any re-determination made under

section 57 or paragraph 59(1)(

a) or (

e) in respect of any goods that are the subject of a determination made under subsection 56(1) or (2) no more than two years before the ruling’s effective date if, no later than 90 days after that date,

(

a) the importer of the goods

(

i) makes a written request in the prescribed form and manner and accompanied by the prescribed information, and

(ii)

has paid all duties owing on the goods; or

(

b) when the goods are goods of a NAFTA country, the government of that NAFTA country or, if they are of that NAFTA country, the producer, manufacturer or exporter of the goods makes a request as described in subparagraph (a)(i), whether or not the importer of the goods has paid all duties owing on the goods.

Scope ruling — designated officer

(4) A scope ruling may be applied by a designated officer to any determination made under

section 56 no more than two years before the ruling’s effective date if the designated officer deems it advisable within two years after the determination.

Scope ruling — President

(5) A scope ruling may be applied by the President to any determination made under

section 55 or any re-determination made under

section 56 or 57 or paragraph 59(1)(

a) or (

e) no more than two years before the ruling’s effective date if the President deems it advisable within two years after the day on which the determination or re-determination is made, as the case may be.

Requests under subsection (1) or (3)

(6) In the case of a request made under subsection (1) or (3), the President shall make a decision within one year after the day on which the request was made.

Date of decision

(7) Except for the purposes of making a request under subsection 58(1.1) or

section 77.011 or filing a notice of appeal under subsection 61(1), a decision made under subsection (4) or (5) within 90 days after the scope ruling’s effective date is deemed to be made on that day.

Deemed decision — subsection (1), (3) or (5)

(8) A decision made under subsection (1), (3) or (5) is deemed to be a re-determination made by the President under subsection 59(1).

Deemed decision — subsection (2) or (4)

(9) A decision made under subsection (2) or (4) is deemed to be a re-determination made by a designated officer under

section 57.

Anti-circumvention Investigations

Definition of circumvention

For the purposes of sections 72 to 75.6 , circumvention means a situation in which all of the following exist:

(

a) a change has occurred in the pattern of trade since the day on which an order imposing a countervailing duty was made under

section 7 or an investigation was initiated under

section 31, as the case may be;

(

b) a prescribed activity is occurring and imports of the goods to which that prescribed activity applies are undermining the remedial effects of the order in council or the order or finding of the Tribunal; and

(

c) the principal cause of the change in trade pattern is the imposition of anti-dumping or countervailing duties.

Initiation of investigation

(1) The President shall cause an investigation to be initiated respecting the circumvention of an order or finding of the Tribunal, or an order of the Governor in Council imposing a countervailing duty under

section 7, on the President’s own initiative or, if he or she receives a written complaint respecting the circumvention, within 45 days after the day on which that complaint is received, if he or she is of the opinion that there is evidence that circumvention is occurring.

Investigation — exporter or country

(2) An anti-circumvention investigation may be initiated in respect of an exporter or in respect of a country, as the circumstances require.

Complaint — required information

(3) A complaint made under subsection (1) shall contain the information supporting the allegations that is reasonably available to the complainant and any other prescribed information.

Notice of investigation

(1) If the President causes an anti-circumvention investigation to be initiated, he or she shall

(

a) cause notice of the investigation to be

(

i) given to the importer, the exporter, the government of the exporting country, the domestic producers and the complainant, if any, and

(ii)

published in the Canada Gazette ; and

(

b) publish the reasons for initiating the investigation in the prescribed manner.

President decides not to initiate investigation

(2) If, after receipt of a complaint referred to in subsection 72 (1), the President decides, with respect to some or all of the goods specified in the complaint, not to cause an investigation to be initiated, the President shall send a written notice of the decision and the reasons for it to the complainant.

Statement of essential facts

(1) Subject to subsection (2), the President shall publish, in the prescribed manner, a statement of essential facts in respect of an investigation initiated under subsection 72 (1) that includes

(

a) the President’s preliminary assessment of whether the evidence discloses a reasonable indication of circumvention; and

(

b) a

summary of the facts the President relied on in making that preliminary assessment.

Comments

(2) Before making a decision under subsection 75.1 (1), the President shall allow interested parties sufficient time to provide written comments on the statement of essential facts.

Publication of statement

(3) The President shall give notice of the publication of the statement of essential facts to the importer, the exporter, the government of the exporting country, the domestic producers and the complainant, if any.

Termination

(1) Despite

section 74 , the President may terminate an investigation at any time before the publication of the statement of essential facts, if the President is satisfied that the goods in respect of which an investigation was initiated under subsection 72 (1) are of the same description as goods to which an order or finding of the Tribunal or an order of the Governor in Council applies.

Factors

(2) In making a decision under subsection (1), the President shall take into account the factors referred to in subsection 66 (6).

Notice of termination

(3) If an investigation is terminated under subsection (1), the President shall

(

a) give notice of the termination to the importer, the exporter, the government of the exporting country, the domestic producers and the complainant, if any;

(

b) publish notice of the termination in the Canada Gazette ; and

(

c) on the same day that the notice is given, publish the reasons for terminating the investigation in the prescribed manner, including the reasons for determining that the goods in question are of the same description as goods to which an order or finding of the Tribunal or an order of the Governor in Council applies.

Scope ruling

(4) A decision made under subsection (1) is deemed to be a scope ruling made under subsection 66 (1).

Decision — circumvention

75.1

(1) Subject to subsection 75 (1), within 180 days after initiating an investigation under subsection 72 (1), the President shall make a decision and shall

(

a) cause written notice of the decision to be

(

i) given to the importer, the exporter, the government of the exporting country, the domestic producers and the complainant, if any, and

(ii)

published in the Canada Gazette ;

(

b) publish the reasons for the decision in the prescribed manner; and

(

c) in the case of the President finding that there is circumvention, file with the Tribunal the decision, the reasons for the decision and any other material relating to the decision that may be required under the rules of the Tribunal.

Circumvention

(2) In making the decision under subsection (1), the President may only make a finding of circumvention if, on the available evidence, the President is satisfied that importation of some or all of the goods in question constitutes circumvention.

Details of decision

(3) A decision setting out a finding of circumvention must specify

(

a) the goods to which it applies; and

(

b) the exporters and the exporting countries to which it applies.

Terms and conditions

(4) A decision setting out a finding of circumvention may include any terms and conditions that the President considers appropriate.

Extension of time period

75.2

(1) The President may, at any time before the publication of the statement of essential facts and before the expiry of the 180-day period set out in subsection 75.1 (1), extend the period set out in that subsection to 240 days, in prescribed circumstances.

Notice of extension

(2) The President shall cause written notice of any extension to be

(

a) given to the importer, the exporter, the government of the exporting country, the domestic producers and the complainant, if any; and

(

b) published in the Canada Gazette .

Tribunal

75.3

Without delay after a decision setting out a finding of circumvention is filed with the Tribunal under paragraph 75.1 (1)(c), the Tribunal shall make an order amending the order or finding that is the subject of the President’s decision in the manner described in the decision, including any terms and conditions that are set out in the decision.

Interim review

75.4

(1) The President may, on his or her own initiative or at the request of the Minister of Finance or any other person, the Tribunal or a government, conduct an interim review of

(

a) a decision made under subsection 75.1 (1) that sets out a finding of circumvention; or

(

b) any aspect of a decision referred to in paragraph (a).

Included decisions

(2) For the purposes of subsection (1), a decision made under subsection 75.1 (1) is deemed to include any decision relating to it that is made under subsection (6) or 75.6 (5) prior to the initiation of a review under subsection (1).

Limitation

(3) The President shall not conduct an interim review at the request of any person or government or the Tribunal unless the person or government or the Tribunal satisfies the President that the review is warranted.

Decision if interim review not initiated

(4) If the President decides not to conduct an interim review at the request of a person or government, the President shall forward a copy of the decision and the reasons for it to that person or government.

Initiation of interim review

(5) If the President decides to conduct an interim review the President shall cause written notice of the decision to be

(

a) given to the importer, the exporter, the government of the exporting country, the domestic producers, and the person or government requesting the review, if any; and

(

b) published in the Canada Gazette .

Decision

(6) On completion of an interim review, the President shall make a decision rescinding the decision under review or confirming it, with or without amendment, as the circumstances require, and shall give reasons for making the decision.

Notice

(7) On completion of an interim review, the President shall

(

a) cause written notice of the decision made under subsection (6) to be given to the importer, the exporter, the government of the exporting country, the domestic producers and the person or government requesting the review, if any;

(

b) cause the notice to be published in the Canada Gazette ;

(

c) publish the reasons for that decision in the prescribed manner; and

(

d) if the decision requires the amendment of an order or finding of the Tribunal, file with the Tribunal the decision, the reasons for the decision and any other material relating to the decision that may be required under the rules of the Tribunal.

Tribunal

(8) Without delay after