Budget Implementation Act, 2003

2003, c. 15

Annual Statutes

C-28 2 37 51-52 Elizabeth II 2003

An Act to implement certain provisions of the budget tabled in Parliament on February 18, 2003

Budget Implementation Act, 2003

Budget Implementation, 2003 2003 6 19 15 2003

SUMMARY

Part 1 authorizes the Minister of Finance to pay $1.5 billion into a trust, to be provided to provinces for the purposes of acquiring diagnostic and medical equipment and training specialized staff in order to improve access to publicly funded diagnostic and treatment services. The funds will be distributed to the provinces on a per capita basis.

Part 2 amends the Federal-Provincial Fiscal Arrangements Act to implement a $16 billion Health Reform transfer and a $2.5 billion Canada Health and Social Transfer (CHST) supplement, and to create two new transfer mechanisms. The Health Reform transfer will be distributed to the provinces on a per capita basis over a five-year period beginning on April 1, 2003. The Minister is authorized to pay a $2.5 billion CHST supplement into a trust from which these funds will be distributed to the provinces on an equal per capita basis. The new Canada Health Transfer and Canada Social Transfer will replace the CHST on April 1, 2004, and funding levels are set out through to 2007-08. In addition,

Part 2 removes the maximum amount payable to provinces under the Equalization program, effective in fiscal year 2002-03.

Part 3 amends the Canada Student Financial Assistance Act to add protected persons within the meaning of the Immigration and Refugee Protection Act to the list of students eligible for a student loan, and to ensure that appropriate compensation continues to be paid to provinces and territories not participating in the Canada Student Loans Program. It also amends the Canada Student Financial Assistance Act and the Canada Student Loans Act to provide for a limitation period of six years for the collection of student loans.

Part 4 amends the Employment Insurance Act and the Employment Insurance (Fishing) Regulations to introduce a new type of special benefits.

It amends the Act in order to: provide six weeks of new compassionate benefits for families to share; establish the medical proof required to receive such benefits; establish the period during which such benefits may be paid; provide for one waiting period per family when such benefits are shared; provide for the authority to make new regulations consequential to the introduction of compassionate care benefits; set the annual premium rate for 2004; and make other minor consequential amendments to the Employment Insurance Act and the Employment Insurance (Fishing) Regulations .

It also makes related amendments to the Canada Labour Code .

Part 5 amends the Budget Implementation Act, 1997 , the Budget Implementation Act, 1998 , and the Canada Foundation for Sustainable Development Technology Act to permit repayment of public moneys provided to, respectively, the Canada Foundation for Innovation, the Canada Millennium Scholarship Foundation and the Canada Foundation for Sustainable Development Technology to the Receiver General for credit to the Consolidated Revenue Fund on the winding up or dissolution of those foundations. Secondly, this Part provides for the making of grants to certain organizations.

Thirdly, this Part amends the Farm Credit Canada Act to remove the temporal restriction on investments and to increase its capital. Finally, this Part repeals the Debt Servicing and Reduction Account Act and provides that it does not apply to the 2002-2003 or any later fiscal year.

Part 6 amends the Air Travellers Security Charge Act to reduce the air travellers security charge for domestic air travel from $12 to $7 for one-way travel and from $24 to $14 for round-trip travel, applicable to air travel purchased on or after March 1, 2003.

Part 7 amends the Customs Tariff, Excise Act, 2001 and Excise Tax Act to implement tobacco tax increases proposed on June 17, 2002. The proposed amendments include increases in the taxes and duties on cigarettes, tobacco sticks and other manufactured tobacco, cigars, exported tobacco products, and tobacco products delivered to duty-free shops, sold as ships’ stores or imported by Canadian residents returning to Canada.

Part 8 amends the Excise Tax Act to implement measures relating to the fuel excise taxes imposed under

Part III of that Act and the goods and services tax or harmonized sales tax (GST/HST) imposed under

Part IX of that Act. With respect to excise taxes,

Part 8 removes the 4-cent-per-litre federal excise tax on diesel fuel from bio-diesel fuel, from the bio-diesel portion of blended diesel fuel, and from the biomass-produced ethanol or methanol portion of blended diesel fuel, effective February 19, 2003. As well, it clarifies that no rebate of the excise tax on fuel is payable in respect of fuel taken out of the country in the fuel tank of a vehicle being driven across the border, applicable to rebate claims received by the Canada Customs and Revenue Agency on or after February 18, 2003.

With respect to the GST/HST, it ensures that the supply of school transportation services by school authorities continues to be treated as an exempt activity and that the supply of municipal services by a private contractor to a municipality or government continues to be treated as taxable, in both cases effective from the date of first enactment of the respective provisions on December 17, 1990.

Part 9 enacts the First Nations Goods and Services Tax Act , which provides for the imposition by eligible first nations of a first nations goods and services tax (FNGST) on first nation lands. The FNGST would be payable by both aboriginals and non-aboriginals and would be identical to the 7-per-cent goods and services tax (GST) or the federal component of the harmonized sales tax (HST) that is imposed under

Part IX of the Excise Tax Act . A first nation may enact a law that imposes an FNGST either under the authority granted by the First Nations Goods and Services Tax Act or under a power to enact a law that has been recognized or granted under another Act of Parliament or under an agreement that has been given effect by another Act of Parliament.

A key feature of the enactment is that it provides for the seamless operation of the GST/HST and an FNGST imposed by a first nation. Also, the enactment provides for the authority to enter into an administration agreement between the Government of Canada and the authorized body of a first nation respecting the collection and administration of the 7-per-cent first nations goods and services tax imposed under the law of a first nation and for the estimation and sharing of tax revenues between the Government of Canada and the first nation.

Part 10 enacts amendments to the Income Tax Act that

— increase the annual National Child Benefit Supplement through successive increases of $150 per child in July 2003, $185 in July 2005 and $185 in July 2006 (indexed after year of introduction);

— introduce, effective July 2003, a $1600 Child Disability Benefit as a supplement to the Canada Child Tax Benefit (with payments starting March 2004);

— increase, from $7,634 to $13,814 (indexed after 2003), the level of income used to determine the financial dependence of a child or grandchild for the purposes of the rollovers of RRSP and RRIF proceeds on the death of an annuitant;

— clarify the eligibility criteria for the Disability Tax Credit;

— expand the list of expenses eligible for the Medical Expense Tax Credit to include certain expenses for real-time captioning and note-taking services, and voice recognition software, and the incremental cost to individuals with celiac disease of acquiring gluten-free food products;

— increase the limits for tax-assisted retirement saving;

— expand the capital gains rollover for eligible small-business shares by eliminating the original investment limit and the reinvestment limit and allowing an eligible reinvestment to be made in the year of disposition of the original investment shares or within 120 days after the year;

— provide relieving measures concerning the deductibility of automobile expenses and the recognition of taxable benefits relating to automobiles;

— increase, to $300,000 from $200,000, in increments of $25,000 commencing in 2003, the annual amount of active business income of a small business corporation that is eligible for the special 12 per cent federal corporate income tax rate;

— eliminate the federal capital tax on large corporations over a period of 5 years and increase the threshold at which it begins to apply from $10,000,000 to $50,000,000 in 2004;

— extend the Mineral Exploration Tax Credit to the end of 2004;

— improve the application of the tax shelter rules to arrangements representing the deductibility of tax credits; and

— increase the amount of the Film or Video Production Services Tax Credit to 16 per cent from 11 per cent.

Part 10 also amends the Children’s Special Allowances Act as a consequence to add, with respect to special allowances payable for months that are after June 2003, a benefit parallel to the new $1600 Child Disability Benefit Supplement to the Canada Child Tax Benefit.

Part 11 amends the Excise Act, 2001 , the non-GST/HST parts of the Excise Tax Act and the Income Tax Act to harmonize various accounting, interest, penalty and related administrative and enforcement provisions, generally applicable after June 2003.

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, 2003 .

PART 1 DIAGNOSTIC AND MEDICAL EQUIPMENT

Payments to trust — equipment and training

(1) The Minister of Finance may make direct payments, in an aggregate amount of not more than $1.5 billion, to a trust established to provide the provinces with funding for the purposes of acquiring diagnostic and medical equipment and related specialized staff training in order to improve access to publicly funded diagnostic and treatment services.

Provincial share

(2) The amount that may be provided to a province under this

section is to be determined in accordance with the terms of the trust indenture establishing the trust referred to in subsection (1).

Payments out of C.R.F.

(3) Any amount payable under this

section may be paid by the Minister out of the Consolidated Revenue Fund at the times and in the manner that the Minister considers appropriate.

PART 2

R.S., c. F-8; 1995, c. 17, s. 45(1)

AMENDMENTS TO THE FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT

2001, c. 19, s. 1

Paragraph 4(9)(

a) of the Federal-Provincial Fiscal Arrangements Act is replaced by the following:

(

a) the total amount of the fiscal equalization payments to all provinces as determined under this Part for any fiscal year in the period beginning on April 1, 2000 and ending on March 31, 2002

2000, c. 35, s. 5(2)

3.1

Subsection 13(4) of the Act is replaced by the following:

Definition of social programs

(4) In this section, social programs includes programs in respect of health, post-secondary education, social assistance and social services, including early childhood development, and early learning and child care services.

2000, c. 35, s. 6

(1) Paragraph 14(

f) of the Act is repealed.

2000, c. 35, s. 6

(2) Paragraph 14(

g) of the Act is amended by adding the word “and” at the end of subparagraph (ii) and by replacing subparagraphs (iii) to (

v) with the following:

(iii)

$4.325 billion for the fiscal year beginning on April 1, 2003; and

(3) Section 14 of the Act is amended by adding the following after paragraph ( g ):

(

h) a cash contribution of $2.5 billion to be paid to the trust referred to in

section 16.3.

Section 15 of the Act is amended by adding the following after subsection (5):

Provincial share of cash contribution established under paragraph 14( h )

(6) The portion of the cash contribution established under paragraph 14(

h) that may be provided to a province is to be determined in accordance with the terms of the trust indenture establishing the trust referred to in

section 16.3.

1999, c. 31, s. 238

(1) The portion of paragraph 16(2)(

a) of the French version of the Act after subparagraph (iii) is replaced by the following;

égal au produit obtenu en multipliant par 13,5/(100-9,143) l’« impôt qu’il est par ailleurs tenu de payer en vertu de la présente

partie », au sens du paragraphe 120(4) de la Loi de l’impôt sur le revenu , sur ces revenus;

1999, c. 31, s. 238

(2) The portion of paragraph 16(2)(

b) of the French version of the Act after subparagraph (iii) is replaced by the following;

égal au produit obtenu en multipliant par 13,5/(100-9,143) l’« impôt qu’il est par ailleurs tenu de payer en vertu de la présente

partie », au sens du paragraphe 120(4) de la Loi de l’impôt sur le revenu , sur ces revenus;

The Act is amended by adding the following after

section 16.2:

Payments to trust — Canada Health and Social Transfer supplement

16.3

The Minister may make direct payments, in an aggregate amount of not more than $2.5 billion, to a trust established to provide the provinces with funding for the purposes of relieving existing pressures in the health care system.

The Act is amended by adding the following after

section 23.2:

PART V.1

CANADA HEALTH TRANSFER, CANADA SOCIAL TRANSFER AND HEALTH REFORM TRANSFER

Canada Health Transfer

Purposes

Subject to this Part and for the purpose of giving effect to the 2003 First Ministers’ Accord on Health Care Renewal, a Canada Health Transfer in the amounts referred to in subsection 24.1(1) is to be provided to the provinces for the purposes of

(

a) maintaining the national criteria and conditions in the Canada Health Act , including those respecting public administration, comprehensiveness, universality, portability and accessibility, and the provisions relating to extra-billing and user charges; and

(

b) contributing to providing the best possible health care system for Canadians and to making information about the health care system available to Canadians.

Amount

24.1

(1) The Canada Health Transfer is to consist of

(

a) a cash contribution of

(i)

$12.65 billion for the fiscal year beginning on April 1, 2004,

(ii)

$13 billion for the fiscal year beginning on April 1, 2005,

(iii)

$13.4 billion for the fiscal year beginning on April 1, 2006, and

(iv)

$13.75 billion for the fiscal year beginning on April 1, 2007; and

(

b) the portion of the total equalized tax transfer for all provinces that is determined by multiplying the total equalized tax transfer for all provinces by the quotient, rounded to the nearest hundredth, that is obtained by dividing an amount equal to the cash contribution specified in subparagraph ( a )(

i) by an amount equal to the aggregate of the cash contributions specified in subparagraphs ( a )(

i) and 24.4(1)( a )(i).

Meaning of total equalized tax transfer

(2) In subsection (1), total equalized tax transfer means the total equalized tax transfer as determined in accordance with subsection 24.7(1).

Provincial share

24.2

The cash contribution established under paragraph 24.1(1)(

a) that may be provided to a province for each of the fiscal years mentioned in that paragraph is the amount determined by the formula

F x (K/L) - M where F

is the total of the amounts established under paragraphs 24.1(1)(

a) and (

b) for the fiscal year;

is the population of the province for the fiscal year;

is the total of the population of all provinces for the fiscal year; and

is the amount obtained by multiplying the total equalized tax transfer for the province as determined in accordance with subsection 24.7(1) by the quotient, rounded to the nearest hundredth, that is obtained by dividing an amount equal to the cash contribution specified in subparagraph 24.1(1)( a )(

i) by an amount equal to the aggregate of the cash contributions specified in subparagraphs 24.1(1)( a )(

i) and 24.4(1)( a )(i).

Canada Social Transfer

Purposes

24.3

(1) Subject to this Part, a Canada Social Transfer in the amounts referred to in subsection 24.4(1) is to be provided to the provinces for the purposes of

(

a) financing social programs in a manner that provides provincial flexibility;

(

b) maintaining the national standard, set out in subsection 25.1(1), that no period of minimum residency be required or allowed with respect to social assistance; and

(

c) promoting any shared principles and objectives that are developed under subsection (2) with respect to the operation of social programs.

Discussion with provinces

(2) The Minister of Human Resources Development shall invite representatives of all the provinces to consult and work together to develop, through mutual consent, a set of shared principles and objectives for social programs that could underlie the Canada Social Transfer.

Definition of social programs

(3) In this section, social programs includes programs in respect of post-secondary education, social assistance and social services, including early childhood development, and early learning and child care services.

Amount

24.4

(1) The Canada Social Transfer is to consist of

(

a) a cash contribution of

(i)

$7.75 billion for the fiscal year beginning on April 1, 2004,

(ii)

$75 million for the fiscal year beginning on April 1, 2004,

(iii)

$8.15 billion for the fiscal year beginning on April 1, 2005,

(iv)

$8.5 billion for the fiscal year beginning on April 1, 2006, and

(v)

$8.8 billion for the fiscal year beginning on April 1, 2007; and

(

i) by an amount equal to the aggregate of the cash contributions specified in subparagraphs ( a )(

i) and 24.1(1)( a )(i).

Meaning of total equalized tax transfer

(2) In subsection (1), total equalized tax transfer means the total equalized tax transfer as determined in accordance with subsection 24.7(1).

Provincial share

24.5

The cash contribution established under paragraph 24.4(1)(

a) that may be provided to a province for each of the fiscal years mentioned in that paragraph is the amount determined by the formula

F x (K/L) - M where F

is the total of the amounts established under paragraphs 24.4(1)(

a) and (

b) for the fiscal year;

is the population of the province for the fiscal year;

is the total of the population of all provinces for the fiscal year; and

i) by an amount equal to the aggregate of the cash contributions specified in subparagraphs 24.1(1)( a )(

i) and 24.4(1)( a )(i).

Health Reform Transfer

Purposes

24.6

(1) For the purpose of giving effect to the 2003 First Ministers’ Accord on Health Care Renewal and accelerating health care reform in the priority areas of primary health care, home care and catastrophic drug coverage, the Minister may make direct payments to the provinces to

(

a) increase, in the case of primary health care, the number of residents of a province routinely receiving needed care from multi-disciplinary primary health care organizations or teams;

(

b) provide, in the case of home care, first dollar coverage for a basket of services in the home and community for short-term acute home care, including acute community mental health and end-of-life care; and

(

c) ensure, in the case of catastrophic drug coverage, that persons who are residents under provincial law do not suffer undue financial hardship as a result of needed drug therapy.

Payments

(2) The amounts that may be paid under this

section are

( a )

$1 billion for the fiscal year beginning on April 1, 2003;

( b )

$1.5 billion for the fiscal year beginning on April 1, 2004;

( c )

$3.5 billion for the fiscal year beginning on April 1, 2005;

( d )

$4.5 billion for the fiscal year beginning on April 1, 2006; and

( e )

$5.5 billion for the fiscal year beginning on April 1, 2007.

Provincial share

(3) The amount that may be paid to a province for each of the fiscal years mentioned in subsection (2) is the amount determined by multiplying the amount set out for that fiscal year by the quotient obtained by dividing

(

a) the population of the province for the fiscal year

(

b) the total of the population of all provinces for the fiscal year.

Total Equalized Tax Transfer

Total equalized tax transfer

24.7

(1) The total equalized tax transfer applicable to a province for a fiscal year is the aggregate of

(

a) the total amount, as determined by the Minister, for the fiscal year represented by the federal income tax reduction in the province in respect of the Canada Health Transfer and the Canada Social Transfer for the fiscal year, and

(

b) the amount equal to the lesser of

(

i) the equalization payment that would be payable to the province for the fiscal year under

Part I, and

(ii)

the amount of equalization that would be paid to the province in respect of the federal income tax reduction in all the provinces in respect of the Canada Health Transfer and the Canada Social Transfer for the fiscal year, if the method of calculation of fiscal equalization payments as set out in

Part I, excluding subsection 4(6), were to be applied to the value of the income tax reduction in all the provinces in respect of the Canada Health Transfer and the Canada Social Transfer for the fiscal year, except that

(

A) for the purposes of the calculation under this subparagraph, the relevant revenue bases are to be determined in the prescribed manner, and

(

B) where subsection 4(6) applies in the determination of the fiscal equalization payment to the province for the fiscal year, the amount determined under this subparagraph is to be adjusted in the prescribed manner.

Federal income tax reduction

(2) For the purposes of subsection (1), the amount represented by the federal income tax reduction in a province in respect of the Canada Health Transfer and the Canada Social Transfer for a fiscal year is an amount equal to the aggregate of

(

a) seventy-five per cent of the amount, as determined by the Minister, that would be derived from a tax, computed in accordance with the Income Tax Act ,

(

i) on the incomes, other than incomes from businesses, of individuals resident in the province on the last day of the taxation year ending in the fiscal year, within the meaning of the Income Tax Act ,

(ii)

on the incomes, other than incomes from businesses, earned in the province in the taxation year ending in the fiscal year by individuals not resident in Canada at any time during the taxation year, within the meaning of the Income Tax Act , and

(iii)

on the incomes from businesses earned in the province in the taxation year ending in the fiscal year by individuals, within the meaning of the Income Tax Act ,

equal to the product obtained by multiplying 13.5/(100-9.143) by the “tax otherwise payable under this Part”, within the meaning assigned by subsection 120(4) of the Income Tax Act , on those incomes,

(

b) twenty-five per cent of the amount, as determined by the Minister, that would be derived from a tax, computed in accordance with the Income Tax Act ,

(

i) on the incomes, other than incomes from businesses, of individuals resident in the province on the last day of the taxation year beginning in the fiscal year, within the meaning of the Income Tax Act ,

(ii)

on the incomes, other than incomes from businesses, earned in the province in the taxation year beginning in the fiscal year by individuals not resident in Canada at any time during the taxation year, within the meaning of the Income Tax Act , and

(iii)

on the incomes from businesses earned in the province in the taxation year beginning in the fiscal year by individuals, within the meaning of the Income Tax Act ,

(

c) seventy-five per cent of the amount, as determined by the Minister, that would be derived from a tax, computed in accordance with the Income Tax Act , on the income earned in the province by each corporation, other than a non-resident-owned investment corporation within the meaning of that Act or a corporation named in

Schedule III to the Financial Administration Act , or a wholly-owned subsidiary within the meaning of that Act of a corporation so named, that is an agent of Her Majesty in right of Canada, that maintained a permanent establishment in the province at any time during its taxation year ending in the calendar year that ends in the fiscal year, at the rate of one per cent of its taxable income earned in the province in that taxation year, and

(

d) twenty-five per cent of the amount, as determined by the Minister, that would be derived from a tax, computed in accordance with the Income Tax Act , on the income earned in the province by each corporation, other than a non-resident-owned investment corporation within the meaning of that Act or a corporation named in

Schedule III to the Financial Administration Act , or a wholly-owned subsidiary within the meaning of that Act of a corporation so named, that is an agent of Her Majesty in right of Canada, that maintained a permanent establishment in the province at any time during its taxation year ending in the calendar year that begins in the fiscal year, at the rate of one per cent of its taxable income earned in the province in that taxation year.

Payments

Payments out of C.R.F.

24.8

Any amount payable under this Part may be paid by the Minister out of the Consolidated Revenue Fund at the times and in the manner that may be prescribed.

Reduction or Withholding

Definitions

24.9

The following

definitions apply in sections 25 to 25.5.

Minister

ministre

Minister means the Minister of Human Resources Development.

social assistance

assistance sociale

social assistance means aid in any form to or in respect of a person in need.

Reduction or withholding — Canada Health Transfer and Canada Social Transfer

The cash contribution that may be provided to a province under

section 24.2 or 24.5 or subsection 24.6(3) is to be reduced or withheld for the purposes of giving effect to

(

a) any order made by the Governor in Council in respect of the province under

section 15 or 16 of the Canada Health Act or, in the case of a cash contribution under

section 24.5,

section 25.3 or 25.4 of this Act; or

(

b) any deduction from the cash contribution under

section 20 of the Canada Health Act .

Criteria for eligibility

25.1

(1) In order that a province may qualify for a full cash contribution under sections 24.2 and 24.5 and subsection 24.6(3) for a fiscal year, the laws of the province must not

(

a) require or allow a period of residence in the province or Canada to be set as a condition of eligibility for social assistance or for the receipt or continued receipt of social assistance; or

(

b) make or allow the amount, form or manner of social assistance to be contingent on a period of such residence.

Exception

(2) The criteria in subsection (1) are not contravened by a requirement of a health insurance plan of a province of a minimum period of residence in the province or waiting period that does not contravene paragraph 11(1)(

a) of the Canada Health Act .

Referral to Governor in Council

25.2

(1) Subject to subsection (3), if the Minister, after consultation in accordance with subsection (2) with the minister responsible for social assistance in a province, is of the opinion that the province does not or has ceased to comply with

section 25.1 and the province has not given an undertaking satisfactory to the Minister to remedy the non-compliance within a period that the Minister considers reasonable, the Minister must refer the matter to the Governor in Council.

Consultation process

(2) Before referring a matter to the Governor in Council under subsection (1) in respect of a province, the Minister must

(

a) send by registered mail to the minister responsible for social assistance in the province a notice of concern with respect to any problem foreseen;

(

b) seek any additional information available from the province with respect to the problem through bilateral discussions, and make a report to the province within ninety days after sending the notice of concern; and

(

c) if requested by the province, meet within a reasonable time to discuss the report.

Exception

(3) The Minister may act under subsection (1) without consultation if he or she is of the opinion that a sufficient time has expired after reasonable efforts to achieve consultation were made and that consultation will not be achieved.

Order reducing or withholding contribution

25.3

(1) If the Governor in Council, on the referral of a matter under

section 25.2, is of the opinion that the province does not or has ceased to comply with

section 25.1, the Governor in Council may, by order,

(

a) direct that any cash contribution under

section 24.2 or 24.5 or subsection 24.6(3) to that province for a fiscal year be reduced, in respect of each non-compliance, by an amount that the Governor in Council considers to be appropriate, having regard to the gravity of the non-compliance; or

(

b) if the Governor in Council considers it appropriate, direct that the whole of any cash contribution under

section 24.2 or 24.5 or subsection 24.6(3) to that province for a fiscal year be withheld.

Amending orders

(2) The Governor in Council may, by order, repeal or amend any order made under subsection (1) if the Governor in Council is of the opinion that the repeal or amendment is warranted in the circumstances.

Copy of order

(3) A copy of each order made under this

section together with a statement of any findings on which the order was based must be sent without delay by registered mail to the government of the province concerned, and the Minister must have the order and statement laid before each House of Parliament on any of the first fifteen days on which that House is sitting after the order is made.

Commencement of order

(4) An order made under subsection (1) does not come into force earlier than thirty days after a copy of the order has been sent to the government of the province concerned under subsection (3).

Reimposition of reductions or withholdings

25.4

In the case of a continuing failure to comply with

section 25.1, any reduction or withholding under

section 25.3 of a cash contribution to a province for a fiscal year must be reimposed for each succeeding fiscal year as long as the Minister is satisfied, after consultation with the minister responsible for social assistance in the province, that the non-compliance is continuing.

When reduction or withholding imposed

25.5

Any reduction or withholding under

section 25.3 or 25.4 of a cash contribution may be imposed in the fiscal year in which the non-compliance that gave rise to the reduction or withholding occurred or in the following fiscal year.

Additional Withholding and Deduction

Definition of federal payment

25.6

(1) In this section, federal payment , in respect of a province, means a payment by Canada to the province under this or any other Act of Parliament or any fiscal arrangement or agreement between Canada and the province, whether enacted or entered into before or after the coming into force of this section.

Additional withholding or reduction

(2) If the Governor in Council makes an order under subsection 15(1) of the Canada Health Act or subsection 25.3(1) of this Act directing, in respect of a fiscal year, the withholding of an amount that, but for this section, would exceed the amount that could be withheld under that subsection, the Governor in Council may, in that order, deem any federal payment to the province to be, despite any provision of the Act, arrangement or agreement under which the federal payment is made, a cash contribution to that province for that fiscal year for the purpose of a reduction by, or a withholding of, the excess amount under either of those subsections, under

section 16 or 17 of the Canada Health Act or under

section 25.4 or 25.5 of this Act.

Additional deduction

(3) If the amount to be deducted under subsection 20(1) or (2) of the Canada Health Act for a fiscal year exceeds the amount from which it is to be deducted, the Governor in Council may, by order, deem any federal payment to the province to be, despite any provision in the Act, arrangement or agreement under which the federal payment is made, a cash contribution to that province for that fiscal year for the purpose of deducting the excess amount under that subsection or

section 21 of that Act.

References in Other Acts

References in other Act

25.7

Every reference to “Canada Health and Social Transfer” in any other Act of Parliament is to be read as a reference

(

a) until March 31, 2004, to “Canada Health and Social Transfer and the Health Reform Transfer”; and

(

b) after that date, to “Canada Health Transfer, the Canada Social Transfer and the Health Reform Transfer”.

Report

Report by Ministers

25.8

The Minister, the Minister of Health and the Minister of Human Resources Development may, together or individually, prepare a report on the administration and operation of this Part and have the report laid before each House of Parliament.

PART 3 STUDENT LOANS

1994, c. 28

Canada Student Financial Assistance Act

2001, c. 27, s. 219

Paragraph (

a) of the definition qualifying student in subsection 2(1) of the Canada Student Financial Assistance Act is replaced by the following:

(

a) who is a Canadian citizen, a permanent resident within the meaning of subsection 2(1) of the Immigration and Refugee Protection Act or a protected person within the meaning of subsection 95(2) of that Act,

2000, c. 14, s. 19

(1) The

definitions net costs and total program net costs in subsection 14(6) of the Act are replaced by the following:

net costs

coût net

net costs , for a province for a loan year, means the amount determined by the formula

(A + B) - (C +

D) where A

is the estimated aggregate of all amounts paid by the Minister in that loan year

(

a) to lenders, service providers or financial institutions under this Act, the regulations or an agreement entered into under

section 5, 6.2 or 6.3, to lenders under the Canada Student Loans Act or the regulations made under that Act, and to collection agencies, in respect of student loans or guaranteed student loans made pursuant to certificates of eligibility issued or caused to be issued in any loan year by the appropriate authority for that province, and

(

b) to persons pursuant to regulations made under paragraph 15( p ),

excluding

(

c) any amounts paid pursuant to paragraph 5(

e) or pursuant to regulations made under paragraph 15(

o) that provide for the repayment of student loans by borrowers on an income-contingent basis, and

(

d) any provincial share paid pursuant to an agreement or arrangement made under subparagraph 18( b )(ii),

is the estimated aggregate of

(

a) the amount of interest calculated in that loan year in respect of outstanding loans referred to in the description of A made under an agreement entered into under

section 6.1, at the rate of interest fixed or determined in accordance with subsection 20(2),

(

b) the amount by which the outstanding principal in respect of all loans referred to in paragraph (

a) has been reduced in that loan year in accordance with the regulations,

(

c) the amount of the outstanding principal and interest in respect of all loans referred to in paragraph (

a) for which the Minister has, in that loan year, cancelled the obligation to pay, in accordance with the regulations, as a result of the death or disability of the borrower, and

(

d) the amount of the outstanding principal and interest in respect of all loans referred to in paragraph (

a) for which the Minister has commenced collection action in that loan year, minus the amount of the outstanding principal and interest in respect of loans referred to in that paragraph for which the Minister has ended collection action in that loan year due to the occurrence of an event set out in the regulations that resulted in the removal of restrictions to financial assistance,

is the estimated aggregate of all amounts received by or on behalf of Her Majesty in right of Canada in that loan year, including any amount received pursuant to the Financial Administration Act , in respect of loans referred to in the description of A, other than loans made under an agreement entered into under

section 6.1, excluding

(

a) any amounts received pursuant to paragraph 5(

e) or pursuant to regulations made under paragraph 15(

o) that provide for the repayment of student loans by borrowers on an income-contingent basis, and

(

b) any amounts received by or on behalf of Her Majesty in right of Canada in respect of a provincial share paid pursuant to an agreement or arrangement made under subparagraph 18( b )(ii), and

is the estimated aggregate of

(

a) the amount of interest received by or on behalf of Her Majesty in right of Canada in that loan year in respect of loans referred to in the description of A that were made under an agreement entered into under

section 6.1, and

(

b) any amounts received in that loan year pursuant to collection action taken by the Minister in respect of loans referred to in paragraph ( a ).

total program net costs

coût net total du programme

total program net costs , for a loan year, means the amount determined by the formula

(A + B) - (C +

D) where A

is the aggregate of all amounts paid by the Minister in that loan year

(

a) to lenders, service providers or financial institutions under this Act, the regulations or an agreement entered into under

(

b) to persons pursuant to regulations made under paragraph 15( p ),

excluding

(

c) any amounts paid pursuant to paragraph 5(

e) or pursuant to regulations made under paragraph 15(

o) that provide for the repayment of student loans by borrowers on an income-contingent basis, and

(

d) any provincial share paid pursuant to an agreement or arrangement made under subparagraph 18( b )(ii),

is the aggregate of

(

a) the estimated amount of interest calculated in that loan year in respect of outstanding loans referred to in the description of A made under an agreement entered into under

section 6.1, at the rate of interest fixed or determined in accordance with subsection 20(2),

(

b) the amount by which the outstanding principal in respect of all loans referred to in paragraph (

a) has been reduced in that loan year in accordance with the regulations,

(

c) the amount of the outstanding principal and interest in respect of all loans referred to in paragraph (

a) for which the Minister has, in that loan year, cancelled the obligation to pay, in accordance with the regulations, as a result of the death or disability of the borrower, and

(

d) the amount of the outstanding principal and interest in respect of all loans referred to in paragraph (

is the aggregate of all amounts received by or on behalf of Her Majesty in right of Canada in that loan year, including any amount received pursuant to the Financial Administration Act , in respect of loans referred to in the description of A, other than loans made under an agreement entered into under

section 6.1, excluding

(

a) any amounts received pursuant to paragraph 5(

e) or pursuant to regulations made under paragraph 15(

o) that provide for the repayment of student loans by borrowers on an income-contingent basis, and

(

b) any amounts received by or on behalf of Her Majesty in right of Canada in respect of a provincial share paid pursuant to an agreement or arrangement made under subparagraph 18( b )(ii), and

is the aggregate of

(

section 6.1, and

(

b) any amounts received in that loan year pursuant to collection action taken by the Minister in respect of loans referred to in paragraph ( a ).

(2) Subsection 14(7) of the Act is replaced by the following:

Exception

(7) The following amounts shall be included in the calculations described in the

definitions net costs and total program net costs in subsection (6) only if the government of the province satisfies the Minister, by written notice received by the Minister before the beginning of the loan year in question, that, in relation to the matter in question, the provincial student financial assistance plan has substantially the same effect as the plan established by this Act and the regulations:

(

a) amounts that are determined as a result of the application of subparagraph 5( a )(viii) or

section 7, 10 or 11;

(

b) amounts in relation to programs established by regulations made under paragraph 15( l ), ( m ), (

n) or ( p );

(

c) in respect of loans made under an agreement entered into under

section 6.1, amounts in relation to a termination of the Minister’s rights or a reduction in the outstanding principal resulting from the operation of regulations made under paragraph 15( o ), other than regulations that provide for the repayment of student loans by borrowers on an income-contingent basis; and

(

d) amounts in relation to programs established by regulations made under

section 11 of the Canada Student Loans Act .

Negative amounts

(8) If the amount determined by the formula “(A + B) - (C + D)” in subsection (6) would, but for this subsection, be a negative amount, it is deemed to be zero.

The Act is amended by adding the following after

section 16:

Limitation period

16.1

(1) Subject to this

section and

section 16.2, no action or proceedings shall be taken to recover money owing under a student loan more than six years after the day on which the money becomes due and payable.

Deduction and set-off

(2) Money owing under a student loan may be recovered at any time by way of deduction from or set-off against any sum of money that may be due or payable by Her Majesty in right of Canada to the borrower or the estate or succession of the borrower.

Acknowledgment of liability

(3) If a borrower’s liability for money owing under a student loan is acknowledged in accordance with subsection (4), the time during which the limitation period has run before the acknowledgment does not count in the calculation of that period.

Types of acknowledgments

(4) An acknowledgment of liability means

(

a) a written promise to pay the money owing, signed by the borrower or his or her agent or other representative;

(

b) a written acknowledgment of the money owing, signed by the borrower or his or her agent or other representative, whether or not a promise to pay can be implied from it and whether or not it contains a refusal to pay;

(

c) a part payment by the borrower or his or her agent or other representative of any money owing; or

(

d) any acknowledgment of the money owing made by the borrower, his or her agent or other representative or the trustee or administrator in the course of proceedings under the Bankruptcy and Insolvency Act or any other legislation dealing with the payment of debts.

Acknowledgment after expiry of limitation period

(5) If a borrower’s liability for money owing under a student loan is acknowledged in accordance with subsection (4) after the expiry of the limitation period in respect of the loan, an action or proceedings to recover the money may, subject to subsections (3) and (6), be brought within six years after the date of the acknowledgment.

Limitation period suspended

(6) The running of a limitation period in respect of a student loan is suspended during any period in which it is prohibited to commence or continue an action or other proceedings against the borrower to recover money owing under the loan.

Enforcement proceedings

(7) This

section does not apply in respect of an action or proceedings relating to the execution, renewal or enforcement of a judgment.

Application

16.2

(1) This

section applies only in respect of the recovery of money that became due and payable under a student loan before the coming into force of this section.

Limitation period

(2) Subject to this section, no action or proceedings shall be taken to recover money owing under a student loan more than six years after the day on which the limitation period that applied before the coming into force of this

section started to run.

Prior acknowledgments

(3) For the purposes of subsection (2), the day of the most recent acknowledgment of a borrower’s liability in respect of money owing under a student loan is deemed to be the day on which the limitation period started to run if

(

a) the acknowledgment was made before the coming into force of this section; and

(

b) under the law applicable at the time of the acknowledgment, the time during which the limitation period ran before the acknowledgment did not count in the calculation of that period.

Deduction and set-off

(4) Money owing under a student loan may be recovered at any time by way of deduction from or set-off against any sum of money that may be due or payable by Her Majesty in right of Canada to the borrower or the estate or succession of the borrower.

Acknowledgment of liability

(5) If, on or after the day on which this

section comes into force, a borrower’s liability for money owing under a student loan is acknowledged in accordance with subsection (6), the time during which the limitation period has run before the acknowledgment does not count in the calculation of that period.

Types of acknowledgments

(6) For the purposes of subsections (5) and (7), an acknowledgment of liability means

(

a) a written promise to pay the money owing, signed by the borrower or his or her agent or other representative;

(

c) a part payment by the borrower or his or her agent or other representative of any money owing; or

(

Acknowledgment after expiry of limitation period

(7) If, after the expiry of the limitation period in respect of a student loan — including any limitation period that expired before the coming into force of this

section — and on or after the day on which this

section comes into force, a borrower’s liability for money owing under the loan is acknowledged in accordance with subsection (6), an action or proceedings to recover the money may, subject to subsections (5) and (8), be brought within six years after the date of the acknowledgment.

Limitation period suspended

(8) The running of a limitation period in respect of a student loan is, commencing on the day on which this

section comes into force, suspended during any period in which it is prohibited to commence or continue an action or other proceedings against the borrower to recover money owing under the loan.

Statutory bar

(9) Subject to subsection (7), if the limitation period in respect of a student loan expired before the coming into force of this section, no action or proceeding shall be taken to recover money owing under the loan.

Enforcement proceedings

(10) This

section does not apply in respect of an action or proceedings relating to the execution, renewal or enforcement of a judgment.

Section 20 of the Act is renumbered as subsection 20(1) and is amended by adding the following:

Interest rates

(2) The Minister, with the concurrence of the Minister of Finance and subject to the approval of the Governor in Council, shall fix a rate of interest, or a manner of determining a rate of interest, for the purposes of paragraph (

a) of the description of B in the

definitions net costs and total program net costs in subsection 14(6).

R.S., c. S-23

Canada Student Loans Act

The Canada Student Loans Act is amended by adding the following after

section 19:

Limitation period

19.1

(1) Subject to this

section and

section 19.2, no action or proceedings shall be taken to recover money owing under a guaranteed student loan more than six years after the day on which the money becomes due and payable.

Deduction and set-off

(2) Money owing under a guaranteed student loan may be recovered at any time by way of deduction from or set-off against any sum of money that may be due or payable by Her Majesty in right of Canada to the borrower or the estate or succession of the borrower.

Acknowledgment of liability

(3) If a borrower’s liability for money owing under a guaranteed student loan is acknowledged in accordance with subsection (4), the time during which the limitation period has run before the acknowledgment does not count in the calculation of that period.

Types of acknowledgments

(4) An acknowledgment of liability means

(

a) a written promise to pay the money owing, signed by the borrower or his or her agent or other representative;

(

c) a part payment by the borrower or his or her agent or other representative of any money owing; or

(

Acknowledgment after expiry of limitation period

(5) If a borrower’s liability for money owing under a guaranteed student loan is acknowledged in accordance with subsection (4) after the expiry of the limitation period in respect of the loan, an action or proceedings to recover the money may, subject to subsections (3) and (6), be brought within six years after the date of the acknowledgment.

Limitation period suspended

(6) The running of a limitation period in respect of a guaranteed student loan is suspended during any period in which it is prohibited to commence or continue an action or other proceedings against the borrower to recover money owing under the loan.

Enforcement proceedings

(7) This

section does not apply in respect of an action or proceedings relating to the execution, renewal or enforcement of a judgment.

Application

19.2

(1) This

section applies only in respect of the recovery of money that became due and payable under a guaranteed student loan before the coming into force of this section.

Limitation period

(2) Subject to this section, no action or proceedings shall be taken to recover money owing under a guaranteed student loan more than six years after the day on which the limitation period that applied before the coming into force of this

section started to run.

Prior acknowledgments

(3) For the purposes of subsection (2), the day of the most recent acknowledgment of a borrower’s liability in respect of money owing under a guaranteed student loan is deemed to be the day on which the limitation period started to run if

(

a) the acknowledgment was made before the coming into force of this section; and

(

b) under the law applicable at the time of the acknowledgment, the time during which the limitation period ran before the acknowledgment did not count in the calculation of that period.

Deduction and set-off

(4) Money owing under a guaranteed student loan may be recovered at any time by way of deduction from or set-off against any sum of money that may be due or payable by Her Majesty in right of Canada to the borrower or the estate or succession of the borrower.

Acknowledgment of liability

(5) If, on or after the day on which this

section comes into force, a borrower’s liability for money owing under a guaranteed student loan is acknowledged in accordance with subsection (6), the time during which the limitation period has run before the acknowledgment does not count in the calculation of that period.

Types of acknowledgments

(6) For the purposes of subsections (5) and (7), an acknowledgment of liability means

(

a) a written promise to pay the money owing, signed by the borrower or his or her agent or other representative;

(

c) a part payment by the borrower or his or her agent or other representative of any money owing; or

(

Acknowledgment after expiry of limitation period

(7) If, after the expiry of the limitation period in respect of a guaranteed student loan — including any limitation period that expired before the coming into force of this

section — and on or after the day on which this

Limitation period suspended

(8) The running of a limitation period in respect of a guaranteed student loan is, commencing on the day on which this

section comes into force, suspended during any period in which it is prohibited to commence or continue an action or other proceedings against the borrower to recover money owing under the loan.

Statutory bar

(9) Subject to subsection (7), if the limitation period in respect of a guaranteed student loan expired before the coming into force of this section, no action or proceeding shall be taken to recover money owing under the loan.

Enforcement proceedings

(10) This

section does not apply in respect of an action or proceedings relating to the execution, renewal or enforcement of a judgment.

Coming into Force

Coming into force

(1) Sections 9, 11 and 13 come into force or are deemed to have come into force on August 1, 2003.

Coming into force

(2) Sections 10 and 12 are deemed to have come into force on August 1, 2002.

PART 4 EMPLOYMENT INSURANCE

1996, c. 23

Employment Insurance Act

2000, c. 12, s. 106

The definition common-law partner in subsection 2(1) of the Employment Insurance Act is replaced by the following:

common-law partner

conjoint de fait

common-law partner , in relation to an individual, means a person who is cohabiting with the individual in a conjugal relationship, having so cohabited for a period of at least one year;

(1) Section 10 of the Act is amended by adding the following after subsection (5):

Exception

(5.1) A claim for benefits referred to in

section 23.1 with respect to a family member shall not be regarded as having been made on an earlier day under subsection (4) or (5) if

(

a) at the time the claim is made, all benefits that may otherwise have been payable in relation to that claim have already been exhausted;

(

b) the beginning of the period referred to in subsection 23.1(4) has already been determined with respect to that family member and the claim would have the effect of moving the beginning of that period to an earlier date; or

(

c) the claim is made in any other circumstances set out in the regulations.

2002, c. 9, s. 12(4)

(2) Subsections 10(13) to (15) of the Act are replaced by the following:

Extension of benefit period — special benefits

(13) If, during a claimant’s benefit period,

(

a) regular benefits were not paid to the claimant,

(

b) benefits were paid because of all of the reasons mentioned in paragraphs 12(3)( a ), (

b) and ( c ), and

(

c) benefits were not paid for the maximum number of weeks established for the reasons mentioned in paragraphs 12(3)( a ), (

b) and ( c ),

the benefit period is extended so that benefits may be paid up to the maximum number of weeks available to the claimant for the reason mentioned in each of paragraphs 12(3)( a ), (

b) and ( c ).

Extension of benefit period — special benefits

(13.1) If, during a claimant’s benefit period,

(

a) regular benefits were not paid to the claimant,

(

b) benefits were paid because of all of the reasons mentioned in paragraphs 12(3)( b ), (

c) and ( d ), and

(

c) benefits were not paid for the maximum number of weeks established for the reasons mentioned in paragraphs 12(3)( b ), (

c) and ( d ),

the benefit period is extended so that benefits may be paid up to the maximum number of weeks available to the claimant for the reason mentioned in each of paragraphs 12(3)( b ), (

c) and ( d ).

Extension of benefit period — special benefits

(13.2) If, during a claimant’s benefit period,

(

a) regular benefits were not paid to the claimant,

(

b) benefits were paid because of all of the reasons mentioned in paragraphs 12(3)( a ), (

b) and ( d ), and

(

c) benefits were not paid for the maximum number of weeks established for the reasons mentioned in paragraphs 12(3)( a ), (

b) and ( d ),

the benefit period is extended so that benefits may be paid up to the maximum number of weeks available to the claimant for the reason mentioned in each of paragraphs 12(3)( a ), (

b) and ( d ).

Extension of benefit period — special benefits

(13.3) If, during a claimant’s benefit period,

(

a) regular benefits were not paid to the claimant,

(

b) benefits were paid because of all of the reasons mentioned in subsection 12(3), and

(

c) benefits were not paid for the maximum number of weeks established for the reasons mentioned in paragraphs 12(3)( a ), ( b ), (

c) and ( d ),

the benefit period is extended so that benefits may be paid up to the maximum number of weeks available to the claimant for the reason mentioned in each of those paragraphs.

Maximum extension under subsections (10) to (13.3)

(14) Subject to subsection (15), no extension under any of subsections (10) to (13.3) may result in a benefit period of more than 104 weeks.

Maximum extension under subsections (13) to (13.3)

(15) Unless the benefit period is also extended under any of subsections (10) to (12),

(

a) no extension under subsection (13) may result in a benefit period of more than 67 weeks;

(

b) no extension under subsection (13.1) or (13.2) may result in a benefit period of more than 58 weeks; and

(

c) no extension under subsection (13.3) may result in a benefit period of more than 73 weeks.

(1) Subsection 12(3) of the Act is amended by striking out the word “and” at the end of paragraph ( b ), by adding the word “and” at the end of paragraph (

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

(

d) because the claimant is providing care or support to one or more family members described in subsection 23.1(2), is six.

(2) Section 12 of the Act is amended by adding the following after subsection (4):

Maximum — compassionate care benefits

(4.1) Even if more than one claim is made, or certificate is issued, in respect of the same family member, the maximum number of weeks of benefits payable under

section 23.1 is six weeks during the period of 26 weeks beginning with the first day of the week referred to in paragraph 23.1(4)( a ).

Shorter period

(4.2) If a shorter period is prescribed for the purposes of subsection 23.1(5), then that shorter period applies for the purposes of subsection (4.1).

Expiration of shorter period

(4.3) When a shorter period referred to in subsection (4.2) has expired in respect of a family member, no further benefits are payable under

section 23.1 in respect of that family member until the minimum prescribed number of weeks has elapsed.

2000, c. 14, s. 3(3); 2002, c. 9, s. 13

(3) Subsection 12(5) of the Act is replaced by the following:

Combined weeks of benefits

(5) In a claimant’s benefit period, the claimant may combine weeks of benefits to which the claimant is entitled because of a reason mentioned in subsection (3), but the maximum number of combined weeks is 50. If the benefit period

(

a) is extended under subsection 10(13), the maximum number of combined weeks is 65;

(

b) is extended under subsection 10(13.1) or (13.2), the maximum number of combined weeks is 56; and

(

c) is extended under subsection 10(13.3), the maximum number of combined weeks is 71.

2002, c. 9, s. 14

Subsections 23(3.2) and (3.3) of the Act are replaced by the following:

Extension of period — special benefits

(3.2) If, during a claimant’s benefit period,

(

a) regular benefits were not paid to the claimant,

(

b) benefits were paid because of all of the reasons mentioned in paragraphs 12(3)( a ), (

b) and ( c ), and

(

c) benefits were not paid for the maximum number of weeks established for the reason mentioned in paragraph 12(3)( b ),

the period referred to in subsection (2) is extended so that benefits may be paid up to that maximum number.

Extension of period — special benefits

(3.21) If, during a claimant’s benefit period,

(

a) regular benefits were not paid to the claimant,

(

b) benefits were paid because of all of the reasons mentioned in paragraphs 12(3)( b ), (

c) and ( d ), and

(

c) benefits were not paid for the maximum number of weeks established for the reason mentioned in paragraph 12(3)( b ),

the period referred to in subsection (2) is extended so that benefits may be paid up to that maximum number.

Extension of period — special benefits

(3.22) If, during a claimant’s benefit period,

(

a) regular benefits were not paid to the claimant,

(

b) benefits were paid because of all of the reasons mentioned in paragraphs 12(3)( a ), (

b) and ( d ), and

(

c) benefits were not paid for the maximum number of weeks established for the reasons mentioned in paragraph 12(3)( b ),

the period referred to in subsection (2) is extended so that benefits may be paid up to that maximum number.

Extension of period — special benefits

(3.23) If, during a claimant’s benefit period,

(

a) regular benefits were not paid to the claimant,

(

b) benefits were paid because of all of the reasons mentioned in subsection 12(3), and

(

c) benefits were not paid for the maximum number of weeks established for the reason mentioned in paragraph 12(3)( b ),

the period referred to in subsection (2) is extended so that benefits may be paid up to that maximum number.

Limitation

(3.3) No extension under any of the following provisions may result in the period referred to in subsection (2) being longer than the specified number of weeks:

(

a) for an extension under subsection (3.2), 67 weeks;

(

b) for an extension under subsection (3.21) or (3.22), 58 weeks; and

(

c) for an extension under subsection (3.23), 73 weeks.

Limitation

(3.4) No extension under any of subsections 10(10) to (13.3) may result in the period referred to in subsection (2) being longer than 104 weeks.

The Act is amended by adding the following after

section 23:

Definition

23.1

(1) In this section, family member , in relation to an individual, means

(

a) a spouse or common-law partner of the individual;

(

b) a child of the individual or a child of the individual’s spouse or common-law partner;

(

c) a parent of the individual or a spouse or common-law partner of the parent; and

(

d) any other person who is a member of a class of persons prescribed for the purposes of this definition.

Compassionate care benefits

(2) Notwithstanding

section 18, but subject to this section, benefits are payable to a major attachment claimant if a medical doctor has issued a certificate stating that

(

a) a family member of the claimant has a serious medical condition with a significant risk of death within 26 weeks

(

i) from the day the certificate is issued,

(ii)

in the case of a claim that is made before the day the certificate is issued, from the day from which the medical doctor certifies the family member’s medical condition, or

(iii)

in the case of a claim that is regarded to have been made on an earlier day under subsection 10(4) or (5), from that earlier day; and

(

b) the family member requires the care or support of one or more other family members.

Medical practitioner

(3) In the circumstances set out in the regulations, the certificate required under subsection (2) may be issued by a member of a prescribed class of medical practitioners.

Weeks for which benefits may be paid

(4) Subject to

section 12, benefits under this

section are payable for each week of unemployment in the period

(

a) that begins with the first day of the week in which the following falls, namely,

(

i) the day of issuance of the first certificate in respect of the family member that meets the requirements of subsection (2) and is filed with the Commission,

(ii)

in the case of a claim that is made before the day the certificate is issued, the day from which the medical doctor certifies the family member’s medical condition, or

(iii)

in the case of a claim that is regarded to have been made on an earlier day under subsection 10(4) or (5), that earlier day; and

(

b) that ends on the last day of the week in which any of the following occurs, namely,

(

i) all benefits payable under this

section in respect of the family member are exhausted,

(ii)

the family member dies, or

(iii)

the expiration of 26 weeks following the first day of the week referred to in paragraph ( a ).

Shorter period

(5) If a shorter period is prescribed for the purposes of this section,

(

a) the certificate referred to in subsection (2) must state that the family member has a serious medical condition with a significant risk of death within that period; and

(

b) that period applies for the purposes of subparagraph (4)( b )(iii).

Exception

(6) Subparagraph (4)( a )(ii) does not apply to a claim if

(

a) at the time the certificate is filed with the Commission, all benefits that may otherwise have been payable in relation to that claim have already been exhausted;

(

b) the beginning of the period referred to in subsection (4) has already been determined with respect to the family member, and the filing of the certificate with the Commission would have the effect of moving the beginning of that period to an earlier date; or

(

c) the claim is made in any other circumstances set out in the regulations.

Deferral of waiting period

(7) A claimant who makes a claim for benefits under this

section may have their waiting period deferred until they make another claim for benefits in the same benefit period if

(

a) another claimant has made a claim for benefits under this

section in respect of the same family member during the period described in subsection (4) and that other claimant has served or is serving their waiting period in respect of that claim;

(

b) another claimant is making a claim for benefits under this

section in respect of the same family member at the same time as the claimant and that other claimant elects to serve the waiting period; or

(

c) the claimant or another claimant meets the prescribed requirements.

Division of weeks of benefits

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

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

section may be divided in the manner agreed to by those claimants.

Failure to agree

(9) If the claimants referred to in subsection (8) cannot agree, the weeks of benefits are to be divided in accordance with the prescribed rules.

Limitation

(10) When benefits are payable to a claimant for the reasons set out in this

section and any allowances, money or other benefits are payable to the claimant under a provincial law for the same or substantially the same reasons, the benefits payable to the claimant under this

section shall be reduced or eliminated as prescribed.

(1) Section 54 of the Act is amended by adding the following after paragraph ( c.1 ):

( c.2 )

setting out circumstances for the purposes of paragraphs 10(5.1)(

c) and 23.1(6)( c );

(2) Section 54 of the Act is amended by adding the following before paragraph ( g ):

( f.2 )

prescribing classes of persons for the purposes of paragraph 23.1(1)( d );

( f.3 )

defining and determining what is care or support for the purposes of paragraph 23.1(2)( b );

( f.4 )

prescribing classes of medical practitioners for the purposes of subsection 23.1(3) and setting out the circumstances in which a certificate may be issued by them under subsection 23.1(2);

( f.5 )

prescribing a shorter period for the purposes of subsection 23.1(5) and prescribing a minimum number of weeks in relation to that shorter period for the purposes of subsection 12(4.3);

( f.6 )

prescribing requirements for the purposes of paragraph 23.1(7)( c );

( f.7 )

prescribing rules for the purposes of subsection 23.1(9);

2001, c. 5, s. 10

Section 67 of the Act is replaced by the following:

Premium rate for 2004

66.2

Notwithstanding

section 66, the premium rate for the year 2004 is 1.98%.

Employee’s premium

Subject to

section 70, a person employed in insurable employment shall pay, by deduction as provided in subsection 82(1), a premium equal to their insurable earnings multiplied by the premium rate set under

section 66, 66.1 or 66.2, as the case may be.

(1) Paragraph 69(1)(

a) of the Act is replaced by the following:

(

a) the payment of any allowances, money or other benefits because of illness, injury, quarantine, pregnancy, child care or compassionate care under a plan that covers insured persons employed by the employer, other than one established under provincial law, would have the effect of reducing the special benefits payable to the insured persons; and

(2) Subsection 69(2) of the Act is replaced by the following:

Provincial plans

(2) The Commission shall, with the approval of the Governor in Council, make regulations to provide a system for reducing the employer’s and employee’s premiums when the payment of any allowances, money or other benefits because of illness, injury, quarantine, pregnancy, child care or compassionate care under a provincial law to insured persons would have the effect of reducing or eliminating the special benefits payable to those insured persons.

(3) Section 69 of the Act is amended by adding the following after subsection (5):

Definition

(6) The reference to the payment of allowances, money or other benefits because of compassionate care in subsections (1) and (2) means the payment of allowances, money or other benefits for the same or substantially the same reasons for which benefits are payable under

section 23.1.

SOR/96-445

Employment Insurance (Fishing) Regulations

SOR/2001-74

(1) Subsection 8(11.1) of the Employment Insurance (Fishing) Regulations is replaced by the following:

(11.1) Notwithstanding subsection (11) and subject to the applicable maximums referred to in subsections (17) and (18), the benefit period of a fisher shall be extended by one week for each week in respect of which the fisher is entitled to special benefits under

section 21, 22, 23 or 23.1 of the Act, but shall not exceed a maximum of 52 weeks.

2002, c. 9, s. 16(1)

(2) Subsections 8(11.3) to (11.5) of the Regulations are replaced by the following:

(11.3) Notwithstanding subsection (11) and subject to the applicable maximums referred to in subsection (17), if, during a fisher’s benefit period,

(

a) benefits were not paid to the fisher under subsection (12),

(

b) benefits were paid because of the reasons mentioned in paragraphs 12(3)( a ), (

b) and (

c) of the Act, and

(

c) benefits were not paid for the maximum number of weeks established for the reasons mentioned in paragraphs 12(3)( a ), (

b) and (

c) of the Act,

the benefit period is extended so that benefits may be paid up to the maximum number of weeks available to the fisher for the reason mentioned in each of paragraphs 12(3)( a ), (

b) and (

c) of the Act.

(11.31) Notwithstanding subsection (11) and subject to the applicable maximums referred to in subsection (17), if, during a fisher’s benefit period,

(

a) benefits were not paid to the fisher under subsection (12),

(

b) benefits were paid because of all of the reasons mentioned in paragraphs 12(3)( b ), (

c) and (

d) of the Act, and

(

c) benefits were not paid for the maximum number of weeks established for those reasons,

the benefit period is extended so that benefits may be paid up to the maximum number of weeks available to the fisher for the reason mentioned in each of paragraphs 12(3)( b ), (

c) and (

d) of the Act.

(11.32) Notwithstanding subsection (11) and subject to the applicable maximums referred to in subsection (17), if, during a fisher’s benefit period,

(

a) benefits were not paid to the fisher under subsection (12),

(

b) benefits were paid because of all of the reasons mentioned in paragraphs 12(3)( a ), (

b) and (

d) of the Act, and

(

c) benefits were not paid for the maximum number of weeks established for the reasons mentioned in paragraphs 12(3)( a ), (

b) and (

d) of the Act,

the benefit period is extended so that benefits may be paid up to the maximum number of weeks available to the fisher for the reason mentioned in each of paragraphs 12(3)( a ), (

b) and (

d) of the Act.

(11.33) Notwithstanding subsection (11) and subject to the applicable maximums referred to in subsection (17), if, during a fisher’s benefit period,

(

a) benefits were not paid to the fisher under subsection (12),

(

b) benefits were paid because of all of the reasons mentioned in subsection 12(3) of the Act, and

(

c) benefits were not paid for the maximum number of weeks established for the reasons mentioned in paragraphs 12(3)( a ), ( b ), (

c) and (

d) of the Act,

the benefit period is extended so that benefits may be paid up to the maximum number of weeks available to the fisher for the reason mentioned in each those paragraphs.

(11.4) Subject to subsection (11.5), no extension under any of subsections (11.1) to (11.33) may result in a benefit period of more than 104 weeks.

(11.5) Unless a benefit period is also extended under subsection (11.1) or (11.2), no extension under subsections (11.3) to (11.33) may result in a benefit period of more than

(

a) in the case of an extension under subsection (11.3), 67 weeks;

(

b) in the case of an extension under subsection (11.31) or (11.32), 58 weeks; and

(

c) in the case of an extension under subsection (11.33), 73 weeks.

2002, c. 9, s. 16(2)

(3) Subsection 8(14) of the Regulations is replaced by the following:

(14) No benefit period established under subsection (1) or (6) shall be extended beyond the date determined in accordance with any of subsections (11) to (11.33).

2002, c. 9, s. 16(3)

(4) Subsection 8(17.1) of the Regulations is replaced by the following:

(17.1) For the purpose of subsection (17), the reference in subsection 12(5) of the Act to

( a )

subsection 10(13) of the Act is to be read as a reference to subsection (11.3) of this section;

( b )

subsection 10(13.1) of the Act is to be read as a reference to subsection (11.31) of this section;

( c )

subsection 10(13.2) of the Act is to be read as a reference to subsection (11.32) of this section; and

( d )

subsection 10(13.3) of the Act is to be read as a reference to subsection (11.33) of this section.

(1) Subsection 12(3) of the Regulations is replaced by the following:

(3) Subject to subsection (4), sections 22 to 23.1 of the Act apply to the payment of special benefits under this section.

(2) Paragraph 12(4)(

b) of the Regulations is replaced by the following:

(

b) entitled to benefits under

section 22, 23 or 23.1 of the Act.

Transitional Provisions

(1) Sections 15 to 20 and 22 apply to a claimant for any benefit period

(

a) that begins on or after January 4, 2004; or

(

b) that has not ended before January 4, 2004, but only for weeks of benefits that begin on or after that date.

(2) Sections 23 and 24 apply to a fisher for any benefit period

(

a) that begins on or after January 4, 2004; or

(

b) that has not ended before January 4, 2004, but only for weeks of benefits that begin on or after that date.

Related Amendments

R.S., c. L-2

Canada Labour Code

1993, c. 42, s. 26

The heading “ Reassignment, Maternity Leave and Parental Leave ” immediately after the heading “ Division VII ” in

Part III of the Canada Labour Code is replaced by the following:

Reassignment, Maternity Leave, Parental Leave and Compassionate Care Leave

The Act is amended by adding the following after

section 206.2:

Compassionate Care Leave

Definitions

206.3

(1) The following

definitions apply in this section.

common-law partner

conjoint de fait

common-law partner , in relation to an individual, means a person who is cohabiting with the individual in a conjugal relationship, having so cohabited for a period of at least one year.

family member

membre de la famille

family member , in relation to an employee, means

(

a) a spouse or common-law partner of the employee;

(

b) a child of the employee or a child of the employee’s spouse or common-law partner;

(

c) a parent of the employee or a spouse or common-law partner of the parent; and

(

d) any other person who is a member of a class of persons prescribed for the purposes of this definition or the definition family member in subsection 23.1(1) of the Employment Insurance Act .

qualified medical practitioner

médecin qualifié

qualified medical practitioner means a person who is entitled to practise medicine under the laws of a jurisdiction in which care or treatment of the family member is provided and includes a member of a class of medical practitioners prescribed for the purposes of subsection 23.1(3) of the Employment Insurance Act .

week

semaine

week means the period between midnight on Saturday and midnight on the immediately following Saturday.

Entitlement to leave

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

(

a) the day the certificate is issued; or

(

b) if the leave was commenced before the certificate was issued, the day the leave was commenced.

Period when leave may be taken

(3) The leave of absence may only be taken during the period

(

a) that starts with

(

i) the first day of the week in which the certificate is issued, or

(ii)

if the leave was commenced before the certificate was issued, the first day of the week in which the leave was commenced if the certificate is valid from any day in that week; and

(

b) that ends with the last day of the week in which either of the following occurs, namely,

(

i) the family member dies, or

(ii)

the expiration of 26 weeks following the first day of the week referred to in paragraph ( a ).

Shorter period

(4) If a shorter period is prescribed by regulation for the purposes of subsection 23.1(5) of the Employment Insurance Act ,

(

a) the certificate referred to in subsection (2) must state that the family member has a serious medical condition with a significant risk of death within that period; and

(

b) that shorter period applies for the purposes of subparagraph (3)( b )(ii).

Expiration of shorter period

(5) When a shorter period referred to in subsection (4) has expired in respect of a family member, no further leave may be taken under this

section in respect of that family member until the minimum number of weeks prescribed for the purposes of subsection 12(4.3) of the Employment Insurance Act has elapsed.

Minimum period of leave

(6) A leave of absence under this

section may only be taken in periods of not less than one week’s duration.

Aggregate leave — more than one employee

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

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

Copy of certificate

(8) If requested in writing by the employer within 15 days after an employee’s return to work, the employee must provide the employer with a copy of the certificate referred to in subsection (2).

Section 209.3 of the Act is renumbered as subsection 209.3(1) and is amended by adding the following:

Prohibition — compassionate care leave

(2) The prohibitions set out in subsection (1) also apply in respect of an employee who has taken a leave of absence under

section 206.3.

Section 209.4 of the Act is amended by adding the following after paragraph ( a ):

( a.1 )

prescribing classes of persons for the purposes of paragraph (

d) of the definition family member in subsection 206.3(1);

Coming into Force

Coming into force

(1) Subject to subsection (2), the provisions of this Part, other than sections 21, 23 and 24, come into force on a day to be fixed by order of the Governor in Council.

Coming into force

(2) Despite

section 153 of the Employment Insurance Act , sections 23 and 24 come into force on a day to be fixed by order of the Governor in Council.

PART 5 GENERAL — NON-TAX MEASURES

Foundations

1997, c. 26

Budget Implementation Act, 1997

Section 31 of the Budget Implementation Act, 1997 is renumbered as subsection 31(1) and is amended by adding the following:

Repayment out of remaining property

(2) Despite subsection (1), the Minister may require the foundation to repay out of the moneys arising from the liquidation to the Receiver General for credit to the Consolidated Revenue Fund any amount that is so repayable under the terms or conditions on which public moneys were provided to the foundation.

1998, c. 21

Budget Implementation Act, 1998

Section 43 of the Budget Implementation Act, 1998 is renumbered as subsection 43(1) and is amended by adding the following:

Repayment out of remaining property

(2) Despite subsection (1), the Ministers may require the Foundation to repay out of the moneys arising from the liquidation to the Receiver General for credit to the Consolidated Revenue Fund any amount that is so repayable under the terms or conditions on which public moneys were provided to the Foundation.

2001, c. 23

Canada Foundation for Sustainable Development Technology Act

Section 32 of the Canada Foundation for Sustainable Development Technology Act is renumbered as subsection 32(1) and is amended by adding the following:

Repayment out of remaining property

(2) Despite subsection (1), the Minister may require the Foundation to repay out of the moneys arising from the liquidation to the Receiver General for credit to the Consolidated Revenue Fund any amount that is so repayable under the terms or conditions on which public moneys were provided to the Foundation.

Appropriations for Grants

Canada Foundation for Sustainable Development Technology

$250,000,000 granted

From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of the Environment and the Minister of Natural Resources, be paid and applied a sum not exceeding two hundred and fifty million dollars for payment to the Canada Foundation for Sustainable Development Technology for its use.

Canadian Foundation for Climate and Atmospheric Sciences

$50,000,000 granted

From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of the Environment, be paid and applied a sum not exceeding fifty million dollars for payment to the Canadian Foundation for Climate and Atmospheric Sciences for its use.

Canada Health Infoway Inc.

$600,000,000 granted

From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of Health, be paid and applied a sum not exceeding six hundred million dollars for payment to the Canada Health Infoway Inc. for its use.

Canadian Health Services Research Foundation

$25,000,000 granted

From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of Health, be paid and applied a sum not exceeding twenty-five million dollars for payment to the Canadian Health Services Research Foundation for its use.

Canadian Institute for Health Information

$70,000,000 granted

From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of Health, be paid and applied a sum not exceeding seventy million dollars for payment to the Canadian Institute for Health Information for its use.

Canada Foundation for Innovation

$500,000,000 granted

From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of Industry, be paid and applied a sum not exceeding five hundred million dollars for payment to the Canada Foundation for Innovation for its use.

Genome Canada

$75,000,000 granted

From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister of Industry, be paid and applied a sum not exceeding seventy-five million dollars for payment to Genome Canada for its use.

1993, c. 14; 2001, c. 22, s. 2

Amendments to the Farm Credit Canada Act

2001, c. 22, s. 5(4)

Paragraph 4(2)( f.4 ) of the Farm Credit Canada Act is replaced by the following:

( f.4 )

acquire and dispose of investments in farming operations or in businesses related to farming, including shares of corporations that carry on those operations or businesses, within parameters that are satisfactory to the Minister of Finance;

1997, c. 26, s. 93

Subsection 11(1) of the Act is replaced by the following:

Capital payments

(1) At the request of the Corporation, the Minister of Finance may, with the approval of the Governor in Council, pay to the Corporation, out of the Consolidated Revenue Fund, amounts not exceeding in the aggregate one billion, two hundred and twenty-five million dollars, or such greater aggregate amount as may be authorized from time to time under an appropriation Act.

1992, c. 18

Repeal of Debt Servicing and Reduction Account Act

(1) The Debt Servicing and Reduction Account Act does not apply to the fiscal year ending on March 31, 2003 or to any subsequent fiscal year.

(2) The Act is repealed.

PART 6

2002, c. 9, s. 5

AMENDMENTS TO THE AIR TRAVELLERS SECURITY CHARGE ACT

(1) Paragraphs 12(1)(

a) to (

c) of the Air Travellers Security Charge Act are replaced by the following:

( a )

$6.54 for each chargeable emplanement included in the service, to a maximum of $13.08, if

(

i) the service does not include transportation to a destination outside Canada, and

(ii)

tax under subsection 165(1) of the Excise Tax Act is required to be paid in respect of the service;

( b )

$7.00 for each chargeable emplanement included in the service, to a maximum of $14.00, if

(

i) the service does not include transportation to a destination outside Canada, and

(ii)

tax under subsection 165(1) of the Excise Tax Act is not required to be paid in respect of the service;

( c )

$11.22 for each chargeable emplanement included in the service, to a maximum of $22.43, if

(

i) the service includes transportation to a destination outside Canada and does not include transportation to a destination outside the continental zone, and

(ii)

tax under subsection 165(1) of the Excise Tax Act is required to be paid in respect of the service;

( d )

$12.00 for each chargeable emplanement included in the service, to a maximum of $24.00, if

(

i) the service includes transportation to a destination outside Canada and does not include transportation to a destination outside the continental zone, and

(ii)

tax under subsection 165(1) of the Excise Tax Act is not required to be paid in respect of the service; or

( e )

$24.00, if the service includes transportation to a destination outside the continental zone.

(2) Subsection (1) applies in respect of any air transportation service that includes a chargeable emplanement after February 2003 and for which any consideration is paid or becomes payable after February 2003.

PART 7 AMENDMENTS RELATED TO THE TAXATION OF TOBACCO PRODUCTS

1997, c. 36

Customs Tariff

2002, c. 22, s. 412

Paragraphs 21(2)(

a) to (

c) of the Customs Tariff are replaced by the following:

( a )

$0.075 per cigarette, in the case of cigarettes;

( b )

$0.055 per stick, in the case of tobacco sticks; and

( c )

$0.05 per gram, in the case of manufactured tobacco other than cigarettes and tobacco sticks.

2002, c. 22

Excise Act, 2001

Paragraphs 240(

a) to (

c) of the Excise Act, 2001 are replaced by the following:

( a )

$0.34995 per cigarette that was removed in contravention of that subsection,

( b )

$0.199966 per tobacco stick that was removed in contravention of that subsection, and

( c )

$199.966 per kilogram of manufactured tobacco, other than cigarettes and tobacco sticks, that was removed in contravention of that subsection.

(1) The portion of paragraph 1(

a) of

Schedule 1 to the Act before subparagraph (

i) is replaced by the following:

( a )

$0.374875 for each five cigarettes or fraction of five cigarettes contained in any package, if the cigarettes are black stock

(2) Paragraph 1(

b) of

Schedule 1 to the Act is replaced by the following:

( b )

$0.396255 for each five cigarettes or fraction of five cigarettes contained in any package, in any other case.

(1) The portion of paragraph 2(

a) of

Schedule 1 to the Act before subparagraph (

i) is replaced by the following:

( a )

$0.054983 per stick, if the tobacco sticks are black stock

(2) Paragraph 2(

b) of

Schedule 1 to the Act is replaced by the following:

( b )

$0.057983 per stick, in any other case.

(1) The portion of paragraph 3(

a) of

Schedule 1 to the Act before subparagraph (

i) is replaced by the following:

( a )

$49.983 per kilogram, if the manufactured tobacco is black stock

(2) Paragraph 3(

b) of

Schedule 1 to the Act is replaced by the following:

( b )

$53.981 per kilogram, in any other case.

(1) Paragraph (

a) of

Schedule 2 to the Act is replaced by the following:

( a )

$0.065 per cigar, and

(2) The portion of paragraph (

b) of

Schedule 2 to the Act before subparagraph (

i) is replaced by the following:

( b )

65%, computed on

Paragraphs 1(

a) to (

c) of

Schedule 3 to the Act are replaced by the following:

( a )

$0.075 per cigarette, in the case of cigarettes;

( b )

$0.055 per stick, in the case of tobacco sticks; and

( c )

$0.05 per gram, in the case of manufactured tobacco other than cigarettes or tobacco sticks.

Paragraphs 2(

a) to (

c) of

Schedule 3 to the Act are replaced by the following:

( a )

$0.075 per cigarette, in the case of cigarettes;

( b )

$0.055 per stick, in the case of tobacco sticks; and

( c )

$0.05 per gram, in the case of manufactured tobacco other than cigarettes or tobacco sticks.

Paragraphs 3(

a) to (

c) of

Schedule 3 to the Act are replaced by the following:

( a )

$0.075 per cigarette, in the case of cigarettes;

( b )

$0.055 per stick, in the case of tobacco sticks; and

( c )

$50.00 per kilogram, in the case of tobacco products other than cigarettes or tobacco sticks.

Paragraphs 4(

a) to (

c) of

Schedule 3 to the Act are replaced by the following:

( a )

$0.095724 per cigarette, in the case of cigarettes;

( b )

$0.042 per stick, in the case of tobacco sticks; and

( c )

$46.002 per kilogram, in the case of tobacco products other than cigarettes or tobacco sticks.

R.S., c. E-15

Excise Tax Act

2002, c. 22, s. 414

Paragraphs 23.11(2)(

a) to (

c) of the Excise Tax Act are replaced by the following:

( a )

$0.0475 per cigarette, in the case of cigarettes;

( b )

$0.03665 per stick, in the case of tobacco sticks; and

( c )

$31.65 per kilogram, in the case of manufactured tobacco other than cigarettes and tobacco sticks.

2002, c. 22, s. 415

Paragraphs 23.12(1)(

a) to (

c) of the Act are replaced by the following:

( a )

$0.075 per cigarette, in the case of cigarettes;

( b )

$0.055 per stick, in the case of tobacco sticks; and

( c )

$0.05 per gram, in the case of manufactured tobacco other than cigarettes and tobacco sticks.

2002, c. 22, s. 416(1)

(1) Paragraphs 23.13(1)(

a) to (

c) of the Act are replaced by the following:

( a )

$0.075 per cigarette, in the case of cigarettes;

( b )

$0.055 per stick, in the case of tobacco sticks; and

( c )

$50.00 per kilogram, in the case of manufactured tobacco other than cigarettes and tobacco sticks.

2002, c. 22, ss. 416(2) and (3)

(2) Paragraphs 23.13(2)(

a) to (

c) of the Act are replaced by the following:

( a )

$0.1475 per cigarette, in the case of cigarettes;

( b )

$0.08165 per stick, in the case of tobacco sticks; and

( c )

$81.65 per kilogram, in the case of manufactured tobacco other than cigarettes and tobacco sticks.

1994, c. 29, s. 14(1); 2002, c. 22, s. 419

Sections 1 to 4 of

Schedule II to the Act are replaced by the following:

Cigarettes: $0.25888 for each five cigarettes or fraction of five cigarettes contained in any package.

Tobacco sticks: $0.03965 per stick.

Manufactured tobacco other than cigarettes and tobacco sticks: $35.648 per kilogram.

Cigars: the greater of $0.065 per cigar and 65 per cent.

Coming into Force and Application

For the purposes of applying the provisions of the Customs Act and the Excise Tax Act that provide for the payment of, or the liability to pay, interest in respect of any amount, the amount shall be determined and interest shall be computed on it as though this Act had been assented to on June 18, 2002.

(1) Section 45 is deemed to have come into force on June 18, 2002. For greater certainty, the Customs Tariff , as amended by

section 45, is further amended by

section 346 of the Excise Act, 2001 on the coming into force of that

section 346, regardless of whether that coming into force occurs before or after this Act is assented to.

(2) Sections 46 to 54 come into force or are deemed to have come into force on the day that is the earlier of the day on which this Act is assented to and the day on which

Part 3 of the Excise Act, 2001 comes into force.

(3) Sections 55 to 58 are deemed to have come into force on June 18, 2002. For greater certainty, the Excise Tax Act , as amended by those sections, is further amended by sections 368 and 390 of the Excise Act, 2001 on the coming into force of those sections 368 and 390, regardless of whether that coming into force occurs before or after this Act is assented to.

PART 8

AMENDMENTS RELATED TO EXCISE TAX ON FUEL AND TO THE GOODS AND SERVICES TAX/HARMONIZED SALES TAX

R.S., c. E-15

Excise Tax Act

(1) Section 23.4 of the Excise Tax Act is amended by adding the following after subsection (2):

Where excise tax not payable on diesel-alcohol

(3) Where diesel fuel has been blended with alcohol to produce a diesel-alcohol fuel, the excise tax imposed under

section 23 on diesel fuel is not payable on the portion of the diesel-alcohol fuel that is equal to the percentage by volume of alcohol in the fuel.

(2) Subsection (1) is deemed to have come into force on February 19, 2003.

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

section 23.4:

Definition of bio-diesel fuel

23.5

(1) In this section, bio-diesel fuel means a diesel fuel that is produced from waste materials, or feedstocks, of biological origin and not from petroleum, natural gas or coal.

Excise tax not payable on bio-diesel fuel

(2) The excise tax imposed under

section 23 on diesel fuel is not payable on bio-diesel fuel.

Where excise tax not payable on bio-diesel blended with diesel

(3) Where diesel fuel has been blended with bio-diesel fuel to produce a diesel-bio-diesel fuel, the excise tax imposed under

section 23 on diesel fuel is not payable on the portion of the diesel-bio-diesel fuel that is equal to the percentage by volume of bio-diesel fuel in the fuel.

(2) Subsection (1) is deemed to have come into force on February 19, 2003.

(1) Section 68.1 of the Act is amended by adding the following after subsection (2):

Exception

(3) For greater certainty, no amount is payable to a person under subsection (1) in respect of tax paid on gasoline or diesel fuel transported out of Canada in the fuel tank of the vehicle that is used for that transportation.

(2) Subsection (1) applies in respect of any application for a payment under

section 68.1 of the Act received by the Minister of National Revenue after February 17, 2003.

1990, c. 45, s. 18

(1) Section 5 of

Part III of

Schedule V to the Act is replaced by the following:

A supply made by a school authority to a person other than another school authority of a service of transporting elementary or secondary school students to or from a school that is operated by a school authority.

(2) Subsection (1) is deemed to have come into force on December 17, 1990.

(3) If the amount of a school authority’s net tax for a reporting period determined under the Act as amended by subsection (1) is different from the amount that would be the authority’s net tax for the period if that subsection were not enacted, and the Minister of National Revenue has assessed the net tax for the period, the Minister may reassess the net tax or an amount payable by the authority under

section 230.1 of the Act to take into account that difference, on or before the later of the day that is one year after the day on which this Act is assented to and the last day of the period otherwise allowed under

section 298 of the Act for making the reassessment, despite that

section and despite any decision of a court in respect of that reporting period of the authority that is rendered after December 21, 2001.

1997, c. 10, s. 115(1)

(1) Section 21 of

Part VI of

Schedule V to the Act is replaced by the following:

A supply of a municipal service, if

(

a) the supply is

(

i) made by a government or municipality to a recipient that is an owner or occupant of real property situated in a particular geographic area, or

(ii)

made on behalf of a government or municipality to a recipient that is an owner or occupant of real property situated in a particular geographic area and that is not the government or municipality;

(

b) the service is

(

i) one which the owner or occupant has no option but to receive, or

(ii)

supplied because of a failure by the owner or occupant to comply with an obligation imposed under a law; and

(

c) the service is not one of testing or inspecting any property for the purpose of verifying or certifying that the property meets particular standards of quality or is suitable for consumption, use or supply in a particular manner.

(2) Subsection (1) is deemed to have come into force on December 17, 1990 except that, in applying

section 21 of

Part VI of

Schedule V to the Act, as enacted by subsection (1), to supplies for which all of the consideration becomes due or is paid before April 24, 1996, it shall be read without reference to subparagraph ( b )(ii).

2002, c. 22

Consequential Amendment to Excise Act, 2001

(1) Section 377 of the Excise Act, 2001 is replaced by the following:

2000, c. 30, s. 12(1)

Subsection 68.1(2) of the Act is repealed.

(2) Subsection (1) comes into force or is deemed to have come into force on the earlier of the day before the day on which

section 377 of the Excise Act, 2001 comes into force and the day on which this Act is assented to.

PART 9 FIRST NATIONS GOODS AND SERVICES TAXES

First Nations Goods and Services Tax Act

(1) The First Nations Goods and Services Tax Act is enacted as follows:

An Act respecting first nations goods and services tax

SHORT TITLE

Short title

This Act may be cited as the First Nations Goods and Services Tax Act .

INTERPRETATION

Definitions

(1) The

definitions in this subsection apply in this Act.

administration agreement

accord d’application

administration agreement means an agreement referred to in subsection 5(2).

authorized body

organe autorisé

authorized body , of a first nation, means the body of the first nation that has the authority to enter into an administration agreement.

band

bande

band has the meaning assigned by subsection 2(1) of the Indian Act .

governing body

corps dirigeant

governing body means the body of a first nation that is identified opposite the name of the first nation listed in the schedule.

imported taxable supply

fourniture taxable importée

imported taxable supply has the meaning assigned by

section 217 of the Excise Tax Act .

input tax credit

crédit de taxe sur les intrants

input tax credit has the same meaning as in

Part IX of the Excise Tax Act .

lands

terres

lands , of a first nation, means the lands that are described opposite the name of the first nation listed in the schedule.

Minister

ministre

Minister means the Minister of Finance.

net tax

taxe nette

net tax has the same meaning as in

Part IX of the Excise Tax Act .

Part IX of the Excise Tax Act

partie IX de la

Loi sur la taxe d’accise

Part IX of the Excise Tax Act includes Schedules V to X to that Act.

reserve

réserve

reserve has the meaning assigned by subsection 2(1) of the Indian Act .

Expressions defined in s. 123(1) of the Excise Tax Act

(2) Unless a contrary intention appears, words and expressions used in this Act have the meanings assigned by subsection 123(1) of the Excise Tax Act .

Mobile home or floating home

(3) A mobile home or floating home is deemed to be tangible personal property for the purposes of applying the provisions of this Act and any first nation law, as defined in subsection 11(1) or 12(1), in respect of the bringing of tangible personal property onto the lands of a first nation.

Application of deeming rules

(4) If a provision of

Part IX of the Excise Tax Act deems certain circumstances or facts to exist, those circumstances or facts are deemed to exist for the purposes of determining the matters in respect of which a first nation may enact a first nation law, as defined in subsection 11(1) or 12(1).

APPLICATION OF OTHER ACTS OF PARLIAMENT

Section 87 of Indian Act and similar provisions

(1) The obligation to pay tax or any other amount that is required to be paid under a first nation law, as defined in subsection 11(1) or 12(1), applies despite the application of the exemption under

section 87 of the Indian Act and of any other exemption from taxation under any other Act of Parliament that is similar to the exemption under that section.

Subsection 4(1) applies despite any other Act of Parliament

(2) The governing body of a first nation listed in the

schedule may enact a law under subsection 4(1) that imposes a tax despite any other Act of Parliament that limits the authority of the first nation to enact a law that imposes a tax.

Binding on Her Majesty

(3) If a provision of

Part IX of the Excise Tax Act is binding on Her Majesty in right of Canada or a province, that provision, to the extent that it applies for the purposes of a first nation law, as defined in subsection 11(1) or 12(1), and any provision of the first nation law that corresponds to that provision of that Part, are so binding for the purposes of that law.

FIRST NATION GOODS AND SERVICES TAX LAW

Authority to impose tax

(1) Subject to this section, the governing body of a first nation that is listed in the

schedule and that is a band or has the power to enact laws that has been recognized or granted under any other Act of Parliament or under an agreement that has been given effect by any other Act of Parliament may enact a law that imposes

(

a) a tax in respect of a taxable supply made on the lands of the first nation;

(

b) a tax in respect of the bringing of tangible personal property onto the lands of the first nation from a place in Canada; and

(

c) a tax in respect of an imported taxable supply made on the lands of the first nation.

Supply made on lands

(2) A supply, other than an imported taxable supply, is made on the lands of a first nation only if at least one of the following conditions is met:

(

a) if the lands of the first nation were a participating province, a provision of

Part IX of the Excise Tax Act would deem the supply to be made in that participating province if

(

i) the lands of every other first nation in respect of which a first nation law, as defined in subsection 11(1) or 12(1), is in force at the time the supply is made were each a separate participating province, and

(ii)

the participating provinces listed in

Schedule VIII to the Excise Tax Act were non-participating provinces; or

(

b) tax under

Part IX of the Excise Tax Act is not payable in respect of the supply and such tax would, without

section 13, be payable but for the connection of the supply with those lands and the application of the exemption under

section 87 of the Indian Act or of any other exemption from taxation under any other Act of Parliament that is similar to the exemption under that section.

Supply of specified motor vehicle on lands

(3) Despite subsection (2), for the purposes of paragraph (1)( a ), a supply of a specified motor vehicle by way of lease, licence or similar arrangement under an agreement under which continuous possession or use of the vehicle is provided for a period of more than three months is made on the lands of a first nation only if

(

a) in the case of a recipient who is an individual, the recipient ordinarily resides on those lands at the time the supply is made; and

(

b) in the case of a recipient who is not an individual, the ordinary location of the vehicle, determined for the purposes of

Schedule IX to the Excise Tax Act at the time the supply is made, is on those lands.

Imported taxable supply made on lands

(4) An imported taxable supply is made on the lands of a first nation only if at least one of the following conditions is met:

(

a) tax would be payable in respect of the imported taxable supply under subsection 218.1(1) of the Excise Tax Act if

(

i) the lands of the first nation were the particular participating province referred to in that subsection,

(ii)

the lands of every other first nation in respect of which a first nation law, as defined in subsection 11(1) or 12(1), is in force at the time the supply is made were each a separate participating province,

(iii)

the participating provinces listed in

Schedule VIII to the Excise Tax Act were non-participating provinces, and

(iv)

the recipient of the supply were not a selected listed financial institution; or

(

b) tax under

Part IX of the Excise Tax Act is not payable in respect of the imported taxable supply and such tax would, without

section 13, be payable but for the connection of the supply with those lands and the application of the exemption under

section 87 of the Indian Act or of any other exemption from taxation under any other Act of Parliament that is similar to the exemption under that section.

Bringing of property onto lands

(5) Subject to subsection (6), a tax in respect of the bringing of property onto the lands of a first nation by a person shall be imposed under a law of the first nation enacted under subsection (1) only if the property was last supplied to the person by way of sale at a time when an administration agreement was in effect in respect of that law and tax would have been payable under

Part IX of the Excise Tax Act in respect of the supply otherwise than at the rate of zero but for the application of the exemption under

section 87 of the Indian Act or of any other exemption from taxation under any other Act of Parliament that is similar to the exemption under that section.

Exception

(6) A tax in respect of the bringing of property onto the lands of a first nation by a person shall not be imposed if

(

a) tax became payable by the person in respect of the property under any first nation law, as defined in subsection 11(1) or 12(1), or

section 212 of the Excise Tax Act before the property is brought onto the lands of the first nation; or

(

b) tax would not be payable under subsection 220.05(1) of the Excise Tax Act in respect of the bringing of the property onto the lands of the first nation if

(

i) the lands of the first nation were the particular participating province referred to in that subsection,

(ii)

the lands of every other first nation in respect of which a first nation law, as defined in subsection 11(1) or 12(1), is in force at the time the property is brought onto the lands of the first nation were each a separate participating province,

(iii)

the participating provinces listed in

Schedule VIII to the Excise Tax Act were non-participating provinces, and

(iv)

paragraphs 220.05(3)(

a) and (

b) of the Excise Tax Act ,

section 18 of

Part I of

Schedule X to that Act, the exemption under

section 87 of the Indian Act and any other exemption from taxation under any other Act of Parliament that is similar to the exemption under that

section did not apply in respect of the bringing of the property onto the lands of the first nation.

Carriers

(7) For the purposes of this Act, if a particular person brings property onto the lands of a first nation on behalf of another person, the other person, and not the particular person, is deemed to have brought the property onto those lands.

Amount of tax — bringing of property onto lands

(8) For the purposes of subsection (1), the amount of tax that may be imposed under the law of a first nation in respect of the bringing of property onto the lands of the first nation by a person is equal to the amount determined by the formula

A x B where A

is the rate of tax set out in subsection 165(1) of the Excise Tax Act , and

(

a) if the person last acquired the property by way of a sale under which the property was delivered to the person within thirty days before the day on which it is brought onto the lands of the first nation, the value of the consideration on which tax under

Part IX of the Excise Tax Act in respect of the sale would have been calculated but for the application of the exemption under

section 87 of the Indian Act or of any other exemption from taxation under any other Act of Parliament that is similar to the exemption under that section, and

(

b) in any other case, the lesser of

(

i) the fair market value of the property at the time the property is brought onto the lands of the first nation, and

(ii)

the value of the consideration referred to in paragraph ( a ).

Reporting and payment of tax

(9) Tax that is imposed under a law of a first nation enacted under subsection (1) in respect of the bringing of property onto the lands of the first nation shall become payable by the person who brings it onto the lands at the time it is brought onto the lands and

(

a) if the person is a registrant who acquired the property for consumption, use or supply primarily in the course of commercial activities of the person, the person shall, on or before the day on or before which the person’s return in respect of net tax is required to be filed under the law of the first nation for the reporting period in which the tax became payable, pay the tax to the Receiver General and report the tax in that return; and

(

b) in any other case, the person shall, on or before the last day of the month following the calendar month in which the tax became payable, pay the tax to the Receiver General and file with the Minister of National Revenue in the manner authorized by that Minister a return in respect of the tax in the form authorized by and containing information specified by that Minister.

Amount of tax — supply made on lands

(10) For the purposes of paragraphs (1)(

a) and ( c ), the amount of tax that may be imposed under the law of a first nation in respect of a supply is equal to the amount of tax that would be imposed under

Part IX of the Excise Tax Act in respect of that supply if

(

a) the Excise Tax Act applied and the law of the first nation, the exemption under

section 87 of the Indian Act and any other exemption from taxation under any other Act of Parliament that is similar to the exemption under that

section did not apply in respect of that supply;

(

b) the amount were determined without reference to subparagraph (

v) of the description of A or subparagraph (vi) of the description of J in the definition basic tax content in subsection 123(1) of the Excise Tax Act ; and

(

c) no amount of tax under subsection 165(2), 212.1(2) or 218.1(1) or Division IV.1 of

Part IX of the Excise Tax Act were included in determining that amount.

Administration and enforcement

(11) A law enacted under subsection (1) by the governing body of a first nation shall be administered and enforced, and the tax imposed under that law shall be collected, in accordance with an administration agreement entered into under subsection 11(2) by the authorized body of the first nation.

Tax attributable to a first nation

(1) An administration agreement in respect of a first nation law, as defined in subsection 11(1) or 12(1), of a particular first nation shall provide for payments by the Government of Canada to the particular first nation in respect of that law based on an estimate for each calendar year of the total (in this

section referred to as tax attributable to the first nation ) of

(

a) the amount by which

(

i) the total of all amounts each of which is an amount of tax (other than tax payable by a listed financial institution) that, while that first nation law was in force, became payable in the year under a first nation law, as defined in subsection 11(1) or 12(1), or

Part IX of the Excise Tax Act (other than subsections 165(2), 212.1(2) and 218.1(1) and Division IV.1) and that is attributable to property or a service that is for consumption or use on the lands of the particular first nation exceeds

(ii)

the total of all amounts each of which is included in the total determined under subparagraph (

i) and

(

A) is included in determining an input tax credit or in determining a deduction that may be claimed in determining the net tax of a person,

(

B) can reasonably be regarded as an amount that a person is or was entitled to recover by way of a rebate or refund or otherwise under a first nation law, as defined in subsection 11(1) or 12(1), or under any Act of Parliament, or

(

C) is an amount of tax in respect of a supply to a person who is, under any Act of Parliament or any other law, exempt from paying the tax, and

(

b) the total of all amounts each of which is determined in respect of a listed financial institution by the formula

A x B where A

is the excess that would be determined under paragraph (

a) in respect of the financial institution if subparagraph ( a )(

i) were read without reference to the words “that is for consumption or use on the lands of the particular first nation” and that subparagraph included amounts of tax payable by the financial institution but did not include amounts of tax payable by any other person, and

is the percentage that would be determined, for the purpose of the description of C in the formula in subsection 225.2(2) of the Excise Tax Act , as the financial institution’s percentage for the particular first nation for the last taxation year of the financial institution ending in that calendar year (or, if the financial institution does not have a taxation year ending in that calendar year, for the period that would be that last taxation year if the taxation year of the financial institution that is partly included in that calendar year ended at the end of that calendar year) if the financial institution were a selected listed financial institution and the lands of the particular first nation were a participating province.

Administration agreement

(2) The Minister, with the approval of the Governor in Council, may on behalf of the Government of Canada enter into an agreement in respect of a first nation law, as defined in subsection 11(1) or 12(1), of a first nation with the authorized body of the first nation and, among other things, the agreement shall provide

(

a) the method for estimating, in accordance with the formulae, rules, conditions and data sources specified in the agreement, the tax attributable to the first nation;

(

b) for the sharing, if any, between the first natio

Document details

Collection	Annual Statutes
Citation	2003, c. 15
Type	statute
Volume / chapter	2003, c. 15
Language	en
Format	xml
Source	JUSTICE_LAWS
Identifier	d8dff5d8fc744a160ad2d6618ed0c3a1f22007bd

Source file is stored in the law ingest library (xml).