diff --git "a/task6_model_deployment/assets/C-19_4.txt" "b/task6_model_deployment/assets/C-19_4.txt" new file mode 100644--- /dev/null +++ "b/task6_model_deployment/assets/C-19_4.txt" @@ -0,0 +1,22052 @@ +Page 1 +First Session, Forty-fourth Parliament, +70-71 Elizabeth II, 2021-2022 +STATUTES OF CANADA 2022 +CHAPTER 10 +An Act to implement certain provisions of +the budget tabled in Parliament on April 7, +2022 and other measures +ASSENTED TO +JUNE 23, 2022 +BILL C-19 + +Page 2 +RECOMMENDATION +Her Excellency the Governor General recommends to the House +of Commons the appropriation of public revenue under the cir- +cumstances, in the manner and for the purposes set out in a +measure entitled “An Act to implement certain provisions of the +budget tabled in Parliament on April 7, 2022 and other mea- +sures”. +SUMMARY +Part 1 implements certain income tax measures by +(a) providing a Labour Mobility Deduction for the temporary +relocation of tradespeople to a work location; +(b) allowing for the immediate expensing of eligible property +by certain Canadian businesses; +(c) allowing the Children’s Special Allowance to be paid in +respect of a child who is maintained by an Indigenous gov- +erning body and providing consistent tax treatment of kinship +care providers and foster parents receiving financial assis- +tance from an Indigenous governing body and those receiv- +ing such assistance from a provincial government; +(d) doubling the allowable qualifying expense limit under the +Home Accessibility Tax Credit; +(e) expanding the criteria for the mental functions impair- +ment eligibility as well as the life-sustaining therapy category +eligibility for the Disability Tax Credit; +(f) providing clarity in respect of the determination of the +one-time additional payment under the GST/HST tax credit +for the period 2019-2020; +(g) changing the delivery of Climate Action Incentive pay- +ments from a refundable credit claimed annually to a credit +that is paid quarterly; +(h) temporarily extending the period for incurring eligible ex- +penses and other deadlines under film or video production +tax credits; +(i) providing a tax incentive for specified zero-emission tech- +nology manufacturing activities; +(j) providing the Canada Revenue Agency (CRA) the discre- +tion to accept late applications for the Canada Emergency +Wage Subsidy, the Canada Emergency Rent Subsidy and the +Canada Recovery Hiring Program; +(k) including postdoctoral fellowship income in the definition +of “earned income” for RRSP purposes; +(l) enabling registered charities to enter into charitable part- +nerships with organizations other than qualified donees un- +der certain conditions; +Available on the House of Commons website at the following address: +www.ourcommons.ca +2021-2022 + +Page 3 +(m) allowing automatic and immediate revocation of the reg- +istration of an organization as a charity where that organiza- +tion is listed as a terrorist entity under the Criminal Code; +(n) enabling the CRA to use taxpayer information to assist in +the collection of Canada Emergency Business Account loans; +and +(o) expanding capital cost allowance deductions to include +new clean energy equipment. +It also makes related and consequential amendments to the Ex- +cise Tax Act, the Children’s Special Allowances Act, the Excise +Act, 2001, the Income Tax Regulations and the Children’s Special +Allowance Regulations. +Part 2 implements certain Goods and Services Tax/Harmonized +Sales Tax (GST/HST) measures by +(a) ensuring that all assignment sales in respect of newly +constructed or substantially renovated residential housing +are taxable supplies for GST/HST purposes; and +(b) extending eligibility for the expanded hospital rebate to +health care services supplied by charities or non-profit orga- +nizations with the active involvement of, or on the recom- +mendation of, either a physician or a nurse practitioner, irre- +spective of their geographic location. +Part 3 amends the Excise Act, 2001, the Excise Act and other re- +lated texts in order to implement three measures. +Division 1 of Part 3 implements a new federal excise duty frame- +work for vaping products by, among other things, +(a) requiring that manufacturers of vaping products obtain a +vaping licence from the CRA; +(b) requiring that all vaping products that are removed from +the premises of a vaping licensee to be entered into the Cana- +dian market for retail sale be affixed with an excise stamp; +(c) imposing excise duties on vaping products to be paid by +vaping product licensees; +(d) providing for administration and enforcement rules relat- +ed to the excise duty framework on vaping products; +(e) providing the Governor in Council with authority to pro- +vide for an additional excise duty in respect of provinces and +territories that enter into a coordinated vaping product taxa- +tion agreement with Canada; and +(f) making related amendments to other legislative texts, in- +cluding to allow for a coordinated federal/provincial-territorial +vaping product taxation system and to ensure that the excise +duty framework applies properly to imported vaping prod- +ucts. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +SUMMARY + +Page 4 +Division 2 of Part 3 amends the excise duty exemption under the +Excise Act, 2001 for wine produced in Canada and composed +wholly of agricultural or plant product grown in Canada. +Division 3 of Part 3 amends the Excise Act to eliminate excise +duty for beer containing no more than 0.5% alcohol by volume. +Part 4 enacts the Select Luxury Items Tax Act. That Act creates a +new taxation regime for domestic sales, and importations into +Canada, of certain new motor vehicles and aircraft priced +over $100,000 and certain new boats priced over $250,000. It pro- +vides that the tax applies if the total price or value of the subject +select luxury item at the time of sale or importation exceeds the +relevant price threshold. It provides that the tax is to be calculat- +ed at the lesser of 10% of the total price of the item and 20% of +the total price of the item that exceeds the relevant price thresh- +old. To promote compliance with the new taxation regime, that +Act includes modern elements of administration and enforce- +ment aligned with those found in other taxation statutes. Finally, +this Part also makes related and consequential amendments to +other texts to ensure proper implementation of the new tax and +to ensure a cohesive and efficient administration by the CRA. +Division 1 of Part 5 retroactively renders a provision of the con- +tract that is set out in the schedule to An Act respecting the +Canadian Pacific Railway, chapter 1 of the Statutes of Canada, +1881, to be of no force or effect. It retroactively extinguishes any +obligations and liabilities of Her Majesty in right of Canada and +any rights and privileges of the Canadian Pacific Railway Compa- +ny arising out of or acquired under that provision. +Division 2 of Part 5 amends the Nisga’a Final Agreement Act to +give force of law to the entire Nisga’a Nation Taxation Agree- +ment during the period that that Taxation Agreement is, by its +terms, in force. +Division 3 of Part 5 repeals the Safe Drinking Water for First Na- +tions Act. +It also amends the Income Tax Act to exempt from taxation un- +der that Act any income earned by the Safe Drinking Water Trust +in accordance with the Settlement Agreement entered into on +September 15, 2021 relating to long-term drinking water quality +for impacted First Nations. +Division 4 of Part 5 authorizes payments to be made out of the +Consolidated Revenue Fund for the purpose of addressing tran- +sit shortfalls and needs and improving housing supply and af- +fordability. +Division 5 of Part 5 amends the Canada Deposit Insurance Cor- +poration Act by adding the President and Chief Executive Officer +of the Canada Deposit Insurance Corporation and one other +member to that Corporation’s Board of Directors. +Division 6 of Part 5 amends the Federal-Provincial Fiscal Ar- +rangements Act to authorize additional payments to the +provinces and territories. +Division 7 of Part 5 amends the Borrowing Authority Act to, +among other things, count previously excluded borrowings +made in the spring of 2021 in the calculation of the maximum +amount that may be borrowed. It also amends the Financial Ad- +ministration Act to change certain reporting requirements in re- +lation to amounts borrowed under orders made under para- +graph 46.1(c) of that Act. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +SUMMARY + +Page 5 +Division 8 of Part 5 amends the Pension Benefits Standards Act, +1985 to, among other things, permit the establishment of a sol- +vency reserve account in the pension fund of certain defined +benefit plans and require the establishment of governance poli- +cies for all pension plans. +Division 9 of Part 5 amends the Special Import Measures Act to, +among other things, +(a) provide that assessments of injury are to take into ac- +count impacts on workers; +(b) require the Canadian International Trade Tribunal to +make inquiries with respect to massive importations when it +is acting under section 42 of that Act; +(c) require that Tribunal to initiate expiry reviews of certain +orders and findings; +(d) modify the deadline for notifying the government of the +country of export of properly documented complaints; +(e) modify the criteria for imposing duties in cases of mas- +sive importations; +(f) modify the criteria for initiating anti-circumvention investi- +gations; and +(g) remove the requirement that, in order to find circumven- +tion, the principal cause of the change in a pattern of trade +must be the imposition of anti-dumping or countervailing du- +ties. +It also amends the Canadian International Trade Tribunal Act to +provide that trade unions may, with the support of domestic pro- +ducers, file global safeguard complaints. +Division 10 of Part 5 amends the Trust and Loan Companies Act +and the Insurance Companies Act to, among other things, mod- +ernize corporate governance communications of financial institu- +tions. +Division 11 of Part 5 amends the Insurance Companies Act to +permit property and casualty companies and marine companies +to not include the value of certain debt obligations when calcu- +lating their borrowing limit. +Division 12 of Part 5 enacts the Prohibition on the Purchase of +Residential Property by Non-Canadians Act. The Act prohibits +the purchase of residential property in Canada by non-Canadians +unless they are exempted by the Act or its regulations or the +purchase is made in certain circumstances specified in the regu- +lations. +Division 13 of Part 5 amends the Parliament of Canada Act and +makes consequential and related amendments to other Acts to, +among other things, +(a) change the additional annual allowances that are paid to +senators who occupy certain positions so that the govern- +ment’s representatives and the Opposition in the Senate are +eligible for the allowances for five positions each and the +three other recognized parties or parliamentary groups in the +Senate with the greatest number of members are eligible for +the allowances for four positions each; +(b) provide that the Leader of the Government in the Senate +or Government Representative in the Senate, the Leader of +the Opposition in the Senate and the Leader or Facilitator of +every other recognized party or parliamentary group in the +Senate are to be consulted on the appointment of certain offi- +cers and agents of Parliament; and +(c) provide that the Leader of the Government in the Senate +or Government Representative in the Senate, the Leader of +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +SUMMARY + +Page 6 +the Opposition in the Senate and the Leader or Facilitator of +every other recognized party or parliamentary group in the +Senate may change the membership of the Standing Senate +Committee on Internal Economy, Budgets and Administra- +tion. +Division 14 of Part 5 amends the Financial Administration Act in +order to, among other things, allow the Treasury Board to pro- +vide certain services to certain entities. +Division 15 of Part 5 amends the Competition Act to enhance the +Commissioner of Competition’s investigative powers, criminalize +wage fixing and related agreements, increase maximum fines +and administrative monetary penalties, clarify that incomplete +price disclosure is a false or misleading representation, expand +the definition of anti-competitive conduct, allow private access +to the Competition Tribunal to remedy an abuse of dominance +and improve the effectiveness of the merger notification require- +ments and other provisions. +Division 16 of Part 5 amends the Copyright Act to extend certain +terms of copyright protection, including the general term, from +50 to 70 years after the life of the author and, in doing so, imple- +ments one of Canada’s obligations under the Canada–United +States–Mexico Agreement. +Division 17 of Part 5 amends the College of Patent Agents and +Trademark Agents Act to, among other things, +(a) ensure that the College has sufficient independence and +flexibility to exercise its corporate functions; +(b) provide statutory immunity to certain persons involved in +the regulatory activities of the College; and +(c) grant powers to the Registrar and Investigations Commit- +tee that will allow for improved efficiency in the complaints +and discipline process. +Division 18 of Part 5 enacts the Civil Lunar Gateway Agreement +Implementation Act to implement Canada’s obligations under +the Memorandum of Understanding between the Government of +Canada and the Government of the United States of America +concerning Cooperation on the Civil Lunar Gateway. It provides +for powers to protect confidential information provided under +the Memorandum. It also makes related amendments to the +Criminal Code to extend its application to activities related to the +Lunar Gateway and to the Government Employees Compensa- +tion Act to address the cross-waiver of liability set out in the +Memorandum. +Division 19 of Part 5 amends the Corrections and Conditional Re- +lease Act to restrict the use of detention in dry cells to cases +where the institutional head has reasonable grounds to believe +that an inmate has ingested contraband or that contraband is be- +ing carried in the inmate’s rectum. +Division 20 of Part 5 amends the Customs Act in order to autho- +rize its administration and enforcement by electronic means and +to provide that the importer of record of goods is jointly and sev- +erally, or solidarily, liable to pay duties on the goods under sec- +tion 17 of that Act with the importer or person authorized to ac- +count for the goods, as the case may be, and the owner of the +goods. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +SUMMARY + +Page 7 +Division 21 of Part 5 amends the Criminal Code to create an of- +fence of wilfully promoting antisemitism by condoning, denying +or downplaying the Holocaust through statements communicat- +ed other than in private conversation. +Division 22 of Part 5 amends the Judges Act, the Federal Courts +Act, the Tax Court of Canada Act and certain other acts to, +among other things, +(a) implement the Government of Canada’s response to the +report of the sixth Judicial Compensation and Benefits Com- +mission regarding salaries and benefits and to create the of- +fice of supernumerary prothonotary of the Federal Court; +(b) increase the number of judges for certain superior courts +and include the new offices of Associate Chief Justice of the +Court of Queen’s Bench of New Brunswick and Associate +Chief +Justice +of +the +Court +of +Queen’s +Bench +for +Saskatchewan; +(c) create the offices of prothonotary and supernumerary +prothonotary of the Tax Court of Canada; and +(d) replace the term “prothonotary” with “associate judge”. +Division 23 of Part 5 amends the Immigration and Refugee Pro- +tection Act to, among other things, +(a) authorize the Minister of Citizenship and Immigration to +give instructions establishing categories of foreign nationals +for the purposes of determining to whom an invitation to +make an application for permanent residence is to be issued, +as well as instructions setting out the economic goal that that +Minister seeks to support in establishing the category; +(b) prevent an officer from issuing a visa or other document +to a foreign national invited in respect of an established cate- +gory if the foreign national is not in fact eligible to be a mem- +ber of that category; +(c) require that the annual report to Parliament on the opera- +tion of that Act include a description of any instructions that +establish a category of foreign nationals, the economic goal +sought to be supported in establishing the category and the +number of foreign nationals invited to make an application +for permanent residence in respect of the category; and +(d) authorize that Minister to give instructions respecting the +class of permanent residents in respect of which a foreign na- +tional must apply after being issued an invitation, if the for- +eign national is eligible to be a member of more than one +class. +Division 24 of Part 5 amends the Old Age Security Act to correct +a cross-reference in that Act to the Budget Implementation Act, +2021, No. 1. +Division 25 of Part 5 +(a) amends the Canada Emergency Response Benefit Act to +set out the consequences that apply in respect of a worker +who received, for a four-week period, an income support pay- +ment and who received, for any week during the four-week +period, any benefit, allowance or money referred to in sub- +paragraph 6(1)(b)(ii) or (iii) of that Act; +(b) amends the Canada Emergency Student Benefit Act to set +out the consequences that apply in respect of a student who +received, for a four-week period, a Canada emergency stu- +dent benefit and who received, for any week during the +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +SUMMARY + +Page 8 +four-week period, any benefit, allowance or money referred +to in subparagraph 6(1)(b)(ii) or (iii) of that Act; and +(c) amends the Employment Insurance Act to set out the con- +sequences that apply in respect of a claimant who received, +for any week, an employment insurance emergency response +benefit and who received, for that week, any payment or ben- +efit referred to in paragraph 153.9(2)(c) or (d) of that Act. +Division 26 of Part 5 amends the Employment Insurance Act to, +among other things, +(a) replace employment benefits and support measures set +out in Part II of that Act with employment support measures +that are intended to help insured participants and other work- +ers — including workers in groups underrepresented in the +labour market — to obtain and keep employment; and +(b) allow the Canada Employment Insurance Commission to +enter into agreements to provide for the payment of contribu- +tions to organizations for the costs of measures that they im- +plement and that are consistent with the purpose and guide- +lines set out in Part II of that Act. +It also makes a consequential amendment to the Income Tax +Act. +Division 27 of Part 5 amends the Employment Insurance Act to +specify the maximum number of weeks for which benefits may +be paid in a benefit period to certain seasonal workers and to ex- +tend, until October 28, 2023, the increase in the maximum num- +ber of weeks for which those benefits may be paid. It also +amends the Budget Implementation Act, 2021, No. 1 to add a +transitional measure in relation to amendments to the Employ- +ment Insurance Regulations that are found in that Act. +Division 28 of Part 5 amends the Canada Pension Plan to make +corrections respecting +(a) the calculation of the minimum qualifying period and the +contributory period for the purposes of the post-retirement +disability benefit; +(b) the determination of values for contributors who have pe- +riods excluded from their contributory periods by reason of +disability; and +(c) the attribution of amounts for contributors who have peri- +ods excluded from their contributory periods because they +were family allowance recipients. +Division 29 of Part 5 amends An Act to amend the Criminal Code +and the Canada Labour Code to, among other things, +(a) shorten the period before which an employee begins to +earn one day of medical leave of absence with pay per +month; +(b) standardize the conditions related to the requirement to +provide a medical certificate following a medical leave of ab- +sence, regardless of whether the leave is paid or unpaid; +(c) authorize the Governor in Council to make regulations in +certain circumstances, including to modify certain provisions +respecting medical leave of absence with pay; +(d) ensure that, for the purposes of medical leave of absence, +an employee who changes employers due to the lease or +transfer of a work, undertaking or business or due to a con- +tract being awarded through a retendering process is deemed +to be continuously employed with one employer; and +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +SUMMARY + +Page 9 +(e) provide that the provisions relating to medical leave of +absence come into force no later than December 1, 2022. +Division 30 of Part 5 amends the Canada Business Corporations +Act to, among other things, +(a) require certain corporations to send to the Director ap- +pointed under that Act information on individuals with signifi- +cant control on an annual basis or when a change occurs; +(b) allow that Director to provide all or part of that informa- +tion to an investigative body, the Financial Transactions and +Reports Analysis Centre of Canada or any prescribed entity; +and +(c) clarify that, for the purposes of subsection 21.1(7) of that +Act, it is the securities of a corporation, not the corporation it- +self, that are listed and posted for trading on a designated +stock exchange. +Division 31 of Part 5 amends the Special Economic Measures Act +and the Justice for Victims of Corrupt Foreign Officials Act +(Sergei Magnitsky Law) to, among other things, +(a) create regimes allowing for the forfeiture of property that +has been seized or restrained under those Acts; +(b) specify that the proceeds resulting from the disposition of +those properties are to be used for certain purposes; and +(c) allow for the sharing of information between certain per- +sons in certain circumstances. +It also makes amendments to the Seized Property Management +Act in relation to those forfeiture of property regimes. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +SUMMARY + +Page 10 + +Page 11 +TABLE OF PROVISIONS +An Act to implement certain provisions of the +budget tabled in Parliament on April 7, 2022 and +other measures +Short Title +Budget Implementation Act, 2022, No. 1 +1 +PART 1 +Amendments to the Income Tax Act +and Other Legislation +2 +PART 2 +Amendments to the Excise Tax Act +(GST/HST Measures) +52 +PART 3 +Amendments to the Excise Act, 2001, +the Excise Act and Other Related +Texts +DIVISION 1 +Excise Act, 2001 and Other Related Texts +(Vaping Products) +54 +DIVISION 2 +Excise Act, 2001 (Wine) +129 +DIVISION 3 +Excise Act (Beer) +133 +PART 4 +Select Luxury Items Tax Act +Enactment of Act +135 +2021-2022 + +Page 12 +An Act respecting the taxation of +select luxury items +Short Title +Select Luxury Items Tax Act +1 +PART 1 +Select Luxury Items Tax +DIVISION 1 +Interpretation and Application +SUBDIVISION A +Interpretation +Definitions +2 +Meaning of administration or enforcement of this Act +3 +Person resident in Canada +4 +Arm’s length +5 +Negative amounts +6 +Sale — subject item +7 +Improvement to subject item +8 +Price threshold +9 +Definition of business +10 +Where vessel journeys originate and terminate +11 +Registration of vehicle +12 +SUBDIVISION B +Consideration and Retail Value +Definitions +13 +Value of consideration +14 +Levies included in consideration +15 +Retail value of subject item +16 +SUBDIVISION C +Her Majesty +Her Majesty +17 +DIVISION 2 +Application of Tax +SUBDIVISION A +Tax on Sale +Tax — sale of subject item +18 +Tax not payable — registered vendor of vehicles +19 +SUBDIVISION B +Tax on Importation +Tax — importation into Canada +20 +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +TABLE OF PROVISIONS + +Page 13 +Tax not payable — registered vendor +21 +Definition of determination of the tax status +22 +SUBDIVISION C +Tax in Other Circumstances +Tax — registration of registered vendor’s vehicle +23 +Tax — lease of subject vehicle +24 +Tax — lease of aircraft or vessel +25 +Tax — use of aircraft or vessel +26 +Tax — ceasing to be registered vendor +27 +Tax — ceasing to be qualifying aircraft user +28 +SUBDIVISION D +Tax on Improvements +Rules — improvement after sale +29 +Rules — improvement in other circumstances +30 +Improvement period — regulations +31 +Non-arm’s length — joint and several, or solidary, liabili- +ty +32 +SUBDIVISION E +General Rules +Tax not payable — regulations +33 +Amount of tax — general +34 +Amount of tax — improvement +35 +DIVISION 3 +Certificates +Exemption certificate +36 +Tax certificate +37 +Application for special import certificate +38 +DIVISION 4 +Rebates +SUBDIVISION A +Rebates to Net Tax +Rebate to net tax — export +39 +Rebate to net tax — regulations +40 +Application for rebate to net tax +41 +SUBDIVISION B +Other Rebates +Rebate — foreign representative +42 +Rebate — payment in error +43 +Rebate — regulations +44 +Restriction on rebate +45 +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +TABLE OF PROVISIONS + +Page 14 +SUBDIVISION C +General Rules for Rebates +Restriction on rebate +46 +Single application +47 +Restriction — bankruptcy +48 +Statutory recovery rights +49 +DIVISION 5 +Registration, Reporting Periods, Returns and +Requirement to Pay +Qualifying sale +50 +Application for registration +51 +Cancellation of registration +52 +Security — registration +53 +Reporting periods +54 +Filing of return +55 +Form and content +56 +Net tax — obligation +57 +Overpayment of rebate or interest +58 +Information return +59 +PART 2 +Administration +DIVISION 1 +Miscellaneous +SUBDIVISION A +Trustees, Receivers and Personal +Representatives +Definitions +60 +Estate or succession of deceased individual +61 +Definitions +62 +Distribution by trust +63 +SUBDIVISION B +Amalgamation and Winding-up +Amalgamations +64 +Winding-up +65 +SUBDIVISION C +Partnerships and Joint Ventures +Partnerships +66 +Joint ventures +67 +SUBDIVISION D +Anti-avoidance +Definitions +68 +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +TABLE OF PROVISIONS + +Page 15 +Definitions +69 +DIVISION 2 +Administration and Enforcement +SUBDIVISION A +Payments +Set-off of rebate +70 +Definition of electronic payment +71 +Small amounts owing +72 +Authority for separate returns +73 +Definition of electronic filing +74 +Execution of returns, etc. +75 +Extension of time +76 +Demand for return +77 +SUBDIVISION B +Administration and Officers +Minister’s duty +78 +Staff +79 +Administration of oaths +80 +Inquiry +81 +SUBDIVISION C +Interest +Specified rate of interest +82 +Compound interest on amounts owed by Her Majesty +83 +Interest if Act amended +84 +Waiving or reducing interest +85 +Cancellation of penalties and interest +86 +Dishonoured instruments +87 +SUBDIVISION D +Records and Information +Keeping records +88 +Electronic funds transfer +89 +Requirement to provide information or record +90 +Definitions +91 +SUBDIVISION E +Assessments +Assessment +92 +Assessment of rebate +93 +Restriction on payment by Minister +94 +Notice of assessment +95 +Limitation period for assessments +96 +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +TABLE OF PROVISIONS + +Page 16 +SUBDIVISION F +Objections to Assessment +Objection to assessment +97 +Extension of time by Minister +98 +SUBDIVISION G +Appeal +Extension of time by Tax Court of Canada +99 +Appeal to Tax Court of Canada +100 +Extension of time to appeal +101 +Limitation on appeals to Tax Court of Canada +102 +Institution of appeals +103 +Disposition of appeal +104 +References to Tax Court of Canada +105 +Reference of common questions to Tax Court of Canada +106 +SUBDIVISION H +Penalties +Failure to file return +107 +Failure to file by electronic transmission +108 +Failure to register +109 +Penalty — false statement +110 +Penalty for false declaration — special import certificate +111 +Failure to apply — tax certificate +112 +Failure to notify — tax certificate +113 +Penalty — unregistered importer +114 +Failure to answer demand +115 +Failure to provide information +116 +Failure to provide information +117 +False statements or omissions +118 +General penalty +119 +Waiving or cancelling penalties +120 +SUBDIVISION I +Offences and Punishment +Offence for failure to file return or to comply with de- +mand or order +121 +Offences for false or deceptive statement +122 +Definition of confidential information +123 +Failure to pay tax +124 +General offence +125 +Compliance orders +126 +Officers of corporations, etc. +127 +No power to decrease punishment +128 +Information or complaint +129 +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +TABLE OF PROVISIONS + +Page 17 +SUBDIVISION J +Inspections +Definition of dwelling-house +130 +Compliance order +131 +Search warrant +132 +Definition of foreign-based information or record +133 +Copies +134 +Compliance +135 +Information respecting non-resident persons +136 +SUBDIVISION K +Collection +Definitions +137 +Security +138 +Collection restrictions +139 +Over $10,000,000 — security +140 +Certificates +141 +Garnishment +142 +Recovery by deduction or set-off +143 +Acquisition of debtor’s property +144 +Money seized from debtor +145 +Seizure +146 +Person leaving Canada or defaulting +147 +Definitions +148 +Compliance by unincorporated bodies +149 +Definition of transaction +150 +SUBDIVISION L +Evidence and Procedure +Service +151 +Timing of receipt +152 +Proof of service +153 +DIVISION 3 +Regulations +Regulations +154 +Positive or negative amount — regulations +155 +Incorporation by reference — limitation removed +156 +Certificates and registrations not statutory instruments +157 +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +TABLE OF PROVISIONS + +Page 18 +PART 5 +Various Measures +DIVISION 1 +Provisions Relating to Canadian Pacific Railway +Company Tax Exemption +174 +DIVISION 2 +Nisga’a Final Agreement Act +177 +DIVISION 3 +Safe Drinking Water for First Nations +178 +DIVISION 4 +Payments in Relation to Transit and Housing +180 +DIVISION 5 +Canada Deposit Insurance Corporation Act +181 +DIVISION 6 +Federal-Provincial Fiscal Arrangements Act +182 +DIVISION 7 +Borrowings +183 +DIVISION 8 +Pension Benefits Standards Act, 1985 +186 +DIVISION 9 +Trade Remedies +191 +DIVISION 10 +Corporate Governance of Financial Institutions +220 +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +TABLE OF PROVISIONS + +Page 19 +DIVISION 11 +Insurance Companies Act +233 +DIVISION 12 +Prohibition on the Purchase of Residential +Property by Non-Canadians Act +Enactment of Act +235 +An Act to prohibit the purchase of +residential property by non- +Canadians +Prohibition on the Purchase of Residential Property by +Non-Canadians Act +1 +Definitions +2 +Designation of Minister +3 +Prohibition +4 +Validity +5 +Offence +6 +Order +7 +Regulations +8 +DIVISION 13 +Parliament of Canada Act +238 +DIVISION 14 +Financial Administration Act +255 +DIVISION 15 +Competition Act +256 +DIVISION 16 +Copyright Act +276 +DIVISION 17 +College of Patent Agents and Trademark Agents +Act +282 +DIVISION 18 +Civil Lunar Gateway Agreement Implementation +Act +Enactment of Act +294 +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +TABLE OF PROVISIONS + +Page 20 +An Act to implement the +Memorandum of Understanding +between the Government of Canada +and the Government of the United +States of America concerning +Cooperation on the Civil Lunar +Gateway and to make related +amendments to other Acts +Short Title +Civil Lunar Gateway Agreement Implementation Act +1 +Interpretation +Definitions +2 +General +Purpose +3 +Binding on Her Majesty +4 +Order designating Minister +5 +Delegation of powers +6 +Information +Power to order production +7 +Prohibition +8 +Goods and data +9 +Compliance order +10 +Interpretation +11 +Regulations +Regulations +12 +DIVISION 19 +Corrections and Conditional Release Act +299 +DIVISION 20 +Customs Act +302 +DIVISION 21 +Criminal Code +332 +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +TABLE OF PROVISIONS + +Page 21 +DIVISION 22 +Judges and Prothonotaries +333 +DIVISION 23 +Immigration and Refugee Protection Act +377 +DIVISION 24 +Old Age Security Act +380 +DIVISION 25 +COVID-19 Benefits Adjustments +382 +DIVISION 26 +Employment Insurance Act +387 +DIVISION 27 +Benefits Related to Employment +408 +DIVISION 28 +Canada Pension Plan +415 +DIVISION 29 +Medical Leave with Pay +423 +DIVISION 30 +Canada Business Corporations Act +430 +DIVISION 31 +Economic Sanctions +436 +SCHEDULE 1 +SCHEDULE 2 +SCHEDULE 3 +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +TABLE OF PROVISIONS + +Page 22 + +Page 23 +70-71 ELIZABETH II +CHAPTER 10 +An Act to implement certain provisions of the budget +tabled in Parliament on April 7, 2022 and other mea- +sures +[Assented to 23rd June, 2022] +Her Majesty, by and with the advice and consent of +the Senate and House of Commons of Canada, +enacts as follows: +Short Title +Short title +1 This Act may be cited as the Budget Implementation +Act, 2022, No. 1. +PART 1 +Amendments to the Income Tax +Act and Other Legislation +R.S., c. 1 (5th Supp.) +Income Tax Act +2 (1) Subsection 8(1) of the Income Tax Act is +amended by striking out “and” at the end of para- +graph (r), by adding “and” at the end of para- +graph (s) and by adding the following after para- +graph (s): +Labour mobility deduction +(t) if the taxpayer is an eligible tradesperson for the +year, an amount equal to the lesser of +(i) $4,000, and +(ii) the total of all amounts each of which is a tem- +porary relocation deduction of the taxpayer for the +year in respect of an eligible temporary relocation +of the taxpayer. +2021-2022 + +Page 24 +(2) Section 8 of the Act is amended by adding the +following after subsection (13): +Labour mobility deduction — interpretation +(14) For the purposes of this subsection and para- +graph (1)(t), +(a) a taxpayer is an eligible tradesperson for a taxation +year if, in the taxation year, the taxpayer has income +from employment as a tradesperson or apprentice and +performs their duties of employment in construction +activities described in subsection 238(1) of the Income +Tax Regulations; +(b) a temporary work location of a taxpayer is a loca- +tion in Canada +(i) at which the taxpayer performs their duties of +employment under a temporary employment con- +tract, and +(ii) that is not situated in the locality where the tax- +payer is ordinarily employed or carrying on busi- +ness; +(c) an eligible temporary relocation of a taxpayer is a +temporary relocation that meets the following condi- +tions: +(i) the relocation is undertaken by the taxpayer to +enable the taxpayer to perform their duties of em- +ployment as an eligible tradesperson at one or more +temporary work locations of the taxpayer within the +same locality, +(ii) prior to the relocation, the taxpayer ordinarily +resided at a residence in Canada (in this subsection +referred to as the “ordinary residence”), +(iii) the taxpayer was required by their duties of +employment referred to in subparagraph (i) to be +away from the ordinary residence for a period of +not less than 36 hours, +(iv) during the temporary relocation, the taxpayer +temporarily resided at one or more lodgings in +Canada (in this subsection referred to as the “tem- +porary lodging”), and +(v) the distance between the ordinary residence +and each temporary work location of the taxpayer +referred to in subparagraph (i) is not less than 150 +kilometres greater than the distance between each +temporary lodging referred in subparagraph (iv) +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +2 + +Page 25 +and each temporary work location of the taxpayer +referred to in subparagraph (i); +(d) subject to paragraph (e), an eligible temporary re- +location expense of a taxpayer for a taxation year is a +reasonable expense incurred by the taxpayer during +the taxation year, the previous taxation year or prior +to February 1 of the following taxation year, in respect +of +(i) transportation for one round trip per eligible +temporary relocation by the taxpayer between the +ordinary residence and the temporary lodging, +(ii) meals consumed by the taxpayer during the +round trip described in subparagraph (i), and +(iii) the taxpayer’s temporary lodging if, through- +out the period of the taxpayer’s temporary reloca- +tion, +(A) the taxpayer maintains their ordinary resi- +dence as their principal place of residence, and +(B) the ordinary residence remains available for +the taxpayer’s occupancy and is not rented to +any other person; +(e) an eligible temporary relocation expense described +in paragraph (d) does not include an expense incurred +by the taxpayer to the extent that +(i) the expense is deducted (other than under para- +graph (1)(t)) in computing the taxpayer’s income +for any taxation year, +(ii) the expense was deductible under paragraph +(1)(t) by the taxpayer for the immediately preceding +taxation year, or +(iii) the taxpayer is entitled to receive a reimburse- +ment, allowance or any other form of assistance +(other than an amount that is included in comput- +ing the income for any taxation year of the taxpayer +and that is not deductible in computing the income +of the taxpayer) in respect of the expense; and +(f) a taxpayer’s temporary relocation deduction for a +taxation year in respect of an eligible temporary relo- +cation of the taxpayer is the lesser of +(i) the total eligible temporary relocation expenses +of the taxpayer for the taxation year incurred in re- +spect of the eligible temporary relocation, and +(ii) half of the taxpayer’s total income for the taxa- +tion +year +from +employment +as +an +eligible +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +2 + +Page 26 +tradesperson at all temporary work locations re- +ferred to in subparagraph (c)(i) in respect of the eli- +gible temporary relocation (computed without ref- +erence to this section). +(3) Subsections (1) and (2) apply to the 2022 and +subsequent taxation years. +3 (1) Subsection 13(2) of the Act is replaced by +the following: +Recapture — Class 10.1 Passenger Vehicle +(2) Notwithstanding subsection 13(1), where an excess +amount is determined under that subsection at the end of +a taxation year in respect of a passenger vehicle having a +cost to a taxpayer in excess of $20,000 or such other +amount as may be prescribed, unless it was, at any time, +designated immediate expensing property as defined +in subsection 1104(3.1) of the Income Tax Regulations, +that excess amount shall not be included in computing +the taxpayer’s income for the year but shall be deemed, +for the purposes of B in the definition undepreciated +capital cost in subsection 13(21), to be an amount in- +cluded in the taxpayer’s income for the year by reason of +this section. +(2) The portion of paragraph 13(7)(i) of the Act +before subparagraph (ii) is replaced by the fol- +lowing: +(i) if the cost to a taxpayer of a zero-emission pas- +senger vehicle exceeds the prescribed amount in sub- +section 7307(1.1) of the Income Tax Regulations, or if +the cost of a passenger vehicle that was, at any time, +designated immediate expensing property as de- +fined in subsection 1104(3.1) of the Income Tax Regu- +lations exceeds the prescribed amount in subsection +7307(1) of the Income Tax Regulations, +(i) the capital cost to the taxpayer of the vehicle is +deemed to be equal to the prescribed amount under +subsection 7307(1) or (1.1), as the case may be, and +(3) Subsections (1) and (2) are deemed to have +come into force for taxation years ending on or +after April 19, 2021. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 2-3 + +Page 27 +4 (1) The portion of paragraph 81(1)(h) before +subparagraph (i) of the Act is replaced by the fol- +lowing: +Social assistance +(h) where the taxpayer is an individual (other than a +trust), a social assistance payment (other than a pre- +scribed payment) ordinarily made on the basis of a +means, needs or income test under a program provid- +ed for by an Act of Parliament, a law of a province or a +law of an Indigenous governing body (as defined in +section 2 of the Children’s Special Allowances Act), to +the extent that it is received directly or indirectly by +the taxpayer for the benefit of another individual (oth- +er than the taxpayer’s spouse or common-law partner +or a person who is related to the taxpayer or to the +taxpayer’s spouse or common-law partner), if +(2) The portion of paragraph 81(1)(h.1) before +subparagraph (i) of the Act is replaced by the fol- +lowing: +Social assistance for informal care programs +(h.1) if the taxpayer is an individual (other than a +trust), a social assistance payment ordinarily made on +the basis of a means, needs or income test provided +for under a program of the Government of Canada, the +government of a province or of an Indigenous gov- +erning body (as defined in section 2 of the Children’s +Special Allowances Act), to the extent that it is re- +ceived directly or indirectly by the taxpayer for the +benefit of a particular individual, if +(3) Subsections (1) and (2) are deemed to have +come into force on January 1, 2020. +5 (1) Paragraph (a) of the description of B in sub- +section 118.041(3) of the Act is replaced by the fol- +lowing: +(a) $20,000, and +(2) Paragraphs 118.041(5)(a) and (b) of the Act are +replaced by the following: +(a) a maximum of $20,000 of qualifying expenditures +for a taxation year in respect of a qualifying individual +can be claimed under subsection (3) by the qualifying +individual and all eligible individuals in respect of the +qualifying individual; +(b) if there is more than one qualifying individual in +respect of an eligible dwelling, a maximum of $20,000 +of qualifying expenditures for a taxation year in re- +spect of the eligible dwelling can be claimed under +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 4-5 + +Page 28 +subsection (3) by the qualifying individuals and all eli- +gible individuals in respect of the qualifying individu- +als; and +(3) Subsections (1) and (2) apply to the 2022 and +subsequent taxation years. +6 (1) Subparagraph 118.3(1)(a.1)(ii) of the Act is +replaced by the following: +(ii) is required to be administered at least two +times each week for a total duration averaging not +less than 14 hours a week, and +(2) The portion of subsection 118.3(1.1) of the Act +before paragraph (a) is replaced by the follow- +ing: +Time spent on therapy +(1.1) For the purpose of paragraph 118.3(1)(a.1), in de- +termining whether therapy is required to be adminis- +tered at least two times each week for a total duration av- +eraging not less than an average of 14 hours a week, the +time spent on administering therapy +(3) Paragraphs 118.3(1.1)(b) to (d) of the Act are +replaced by the following: +(b) in the case of therapy that requires +(i) a regular dosage of medication that is required +to be adjusted on a daily basis, includes time spent +on activities that are directly related to the determi- +nation of the dosage of the medication, and +(ii) the daily consumption of a medical food or +medical formula to limit intake of a particular com- +pound to levels required for the proper develop- +ment or functioning of the body, includes the time +spent on activities that are directly related to the +determination of the amount of the compound that +can be safely consumed; +(c) in the case of +(i) a child who is unable to perform the activities +related to the administration of the therapy as a re- +sult of the child’s age, includes the time spent by +another person to perform or supervise those activ- +ities for the child, and +(ii) an individual who is unable to perform the ac- +tivities related to the administration of the therapy +because of the effects of an impairment or impair- +ments in physical or mental functions, includes the +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 5-6 + +Page 29 +time required to be spent by another person to as- +sist the individual in performing those activities; +and +(d) does not include time spent on +(i) activities (other than activities described in +paragraph (b)) related to dietary or exercise restric- +tions or regimes, +(ii) travel time, +(iii) medical appointments (other than medical ap- +pointments to receive therapy or to determine the +daily dosage of medication, medical food or medical +formula), +(iv) shopping for medication, or +(v) recuperation after therapy (other than medical- +ly required recuperation). +(3.1) Section 118.3 of the Act is amended by +adding the following after subsection (1.1): +Deeming +(1.2) Despite subsection (1.1), an individual who is diag- +nosed with type 1 diabetes mellitus is deemed to require +therapy to be administered at least two times each week +for a total duration averaging not less than 14 hours a +week. +(4) Subsections (1) to (3.1) apply to the 2021 and +subsequent taxation years in respect of certifi- +cates described in paragraph 118.3(1)(a.2) or (a.3) +of the Income Tax Act that are filed with the Min- +ister of National Revenue after this Act receives +royal assent. +7 (1) Subparagraphs 118.4(1)(c.1)(i) to (iii) of the +Act are replaced by the following: +(i) attention, +(ii) concentration, +(iii) memory, +(iv) judgement, +(v) perception of reality, +(vi) problem solving, +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 6-7 + +Page 30 +(vii) goal setting, +(viii) regulation of behaviour and emotions, +(ix) verbal and non-verbal comprehension, and +(x) adaptive functioning; +(2) Subsection (1) applies to the 2021 and subse- +quent taxation years in respect of certificates de- +scribed in paragraph 118.3(1)(a.2) or (a.3) of the +Income Tax Act that are filed with the Minister of +National Revenue after this Act receives royal as- +sent. +8 (1) Subsection 122.5(3.001) of the Act is replaced +by the following: +COVID-19 — additional deemed payment +(3.001) An eligible individual in relation to a month +specified for a taxation year who files a return of income +for the taxation year is deemed to have paid during the +specified month on account of their tax payable under +this Part for the taxation year an amount determined by +the formula +A − B − C +where +A +is the total of +(a) $580, +(b) $580 for the qualified relation, if any, of the +individual in relation to the specified month, +(c) if the individual has no qualified relation in re- +lation to the specified month and is entitled to +deduct an amount for the taxation year under sub- +section 118(1) because of paragraph (b) of the de- +scription of B in that subsection in respect of a +qualified dependant of the individual in relation +to the specified month, $580, +(d) $306 times the number of qualified depen- +dants of the individual in relation to the specified +month, other than a qualified dependant in re- +spect of whom an amount is included under para- +graph (c) in computing the total for the specified +month, +(e) if the individual has no qualified relation and +has one or more qualified dependants, in relation +to the specified month, $306, and +(f) if the individual has no qualified relation and +no qualified dependant, in relation to the specified +month, the lesser of $306 and 2% of the amount, if +any, by which the individual’s income for the taxa- +tion year exceeds $9,412; +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 7-8 + +Page 31 +B +is 5% of the amount, if any, by which the individual’s +adjusted income for the taxation year in relation to +the specified month exceeds $37,789; and +C +is the total amount that the eligible individual is +deemed to have paid under subsection (3) on account +of their tax payable for the specified months of July +2019, October 2019, January 2020 and April 2020. +(2) Subsection (1) is deemed to have come into ef- +fect on March 25, 2020. +9 (1) Paragraph (i) of the definition eligible indi- +vidual in section 122.6 of the Act is replaced by the +following: +(i) an individual shall not fail to qualify as a parent +(within the meaning assigned by section 252) of anoth- +er individual solely because of the receipt of a social +assistance amount that is payable under a program of +the Government of Canada, the government of a +province or an Indigenous governing body (as de- +fined in section 2 of the Children’s Special Allowances +Act) for the benefit of the other individual; (particu- +lier admissible) +(2) Subsection (1) is deemed to have come into +force on January 1, 2020. +10 (1) Subsection 122.7(1.2) of the Act is replaced +by the following: +Receipt of social assistance +(1.2) For the purposes of applying the definitions eligi- +ble dependant and eligible individual in subsection (1) +for a taxation year, an individual shall not fail to qualify +as a parent (within the meaning assigned by section 252) +of another individual solely because of the receipt of a so- +cial assistance amount that is payable under a program of +the Government of Canada, the government of a province +or an Indigenous governing body (as defined in section +2 of the Children’s Special Allowances Act) for the bene- +fit of the other individual, unless the amount is a special +allowance under the Children’s Special Allowances Act in +respect of the other individual in the taxation year. +(2) Subsection (1) is deemed to have come into +force on January 1, 2020. +11 (1) The definitions eligible individual, qualified +dependant and qualified relation in subsection +122.8(1) of the Act are replaced by the following: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 8-11 + +Page 32 +eligible individual, in relation to a month specified for a +taxation year, means an individual (other than a trust) +who +(a) has, before the specified month, attained the age of +19 years; or +(b) was, at any time before the specified month, +(i) a parent who resided with their child, or +(ii) married or in a common-law partnership. (par- +ticulier admissible) +qualified dependant, of an individual in relation to a +month specified for a taxation year, means a person who +at the beginning of the specified month +(a) is the individual’s child or is dependent for sup- +port on the individual or on the individual’s cohabiting +spouse or common-law partner; +(b) resides with the individual; +(c) is under the age of 19 years; +(d) is not an eligible individual in relation to the speci- +fied month; and +(e) is not a qualified relation of any individual in rela- +tion to the specified month. (personne à charge ad- +missible) +qualified relation, of an individual in relation to a month +specified for a taxation year, means the person, if any, +who, at the beginning of the specified month, is the indi- +vidual’s cohabiting spouse or common-law partner. +(proche admissible) +(2) Subsection 122.8(2) of the Act is replaced by +the following: +Persons not eligible or qualified +(2) Despite subsection (1), a person is not an eligible in- +dividual, is not a qualified relation and is not a qualified +dependant, in relation to a month specified for a taxation +year, if the person +(a) died before the specified month; +(b) is confined to a prison or similar institution for a +period of at least 90 days that includes the first day of +the specified month; +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +11 + +Page 33 +(c) is at the beginning of the specified month a non- +resident person, other than a non-resident person who +(i) is at that time the cohabiting spouse or +common-law partner of a person who is deemed +under subsection 250(1) to be resident in Canada +throughout the taxation year that includes the first +day of the specified month, and +(ii) was resident in Canada at any time before the +specified month; +(d) is at the beginning of the specified month a person +described in paragraph 149(1)(a) or (b); or +(e) is a person in respect of whom a special allowance +under the Children’s Special Allowances Act is +payable for the specified month. +(3) Subsections 122.8(4) to (8) of the Act are re- +placed by the following: +Deemed payment on account of tax +(4) An eligible individual in relation to a month specified +for a taxation year who files a return of income for the +taxation year is deemed to have paid, during the specified +month, on account of their tax payable under this Part +for the taxation year, an amount equal to the amount, if +any, determined by the formula +(A + B + C × D) × E +where +A +is the amount specified by the Minister of Finance +for an eligible individual in relation to the specified +month for the province (in this subsection and sub- +section (6) referred to as the “relevant province”) in +which the eligible individual resides at the beginning +of the specified month; +B +is +(a) the amount specified by the Minister of Fi- +nance for a qualified relation in relation to the +specified month for the relevant province, if +(i) the eligible individual has a qualified rela- +tion at the beginning of the specified month, or +(ii) subparagraph (i) does not apply and the eli- +gible individual has a qualified dependant at +the beginning of the specified month, and +(b) in any other case, nil; +C +is the amount specified by the Minister of Finance +for a qualified dependant in relation to the specified +month for the relevant province; +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +11 + +Page 34 +D +is the number of qualified dependants of the eligible +individual at the beginning of the specified month, +other than a qualified dependant in respect of whom +an amount is included because of subparagraph +(a)(ii) of the description of B in relation to the speci- +fied month; and +E +is +(a) 1.1, if there is a census metropolitan area, as +determined in the last census published by Statis- +tics Canada before the taxation year, in the rele- +vant province and the individual does not reside +in a census metropolitan area at the beginning of +the specified month, and +(b) 1, in any other case. +Shared-custody parent +(4.1) Despite subsection (4), if an eligible individual is a +shared-custody parent (as defined in section 122.6, but +the definition qualified dependent in that section hav- +ing the meaning assigned by subsection (1)) in respect of +one or more qualified dependants at the beginning of a +month, the amount deemed by subsection (4) to have +been paid during a specified month is equal to the +amount determined by the formula +0.5(A + B) +where +A +is the amount determined under subsection (4), cal- +culated without reference to this subsection; and +B +is the amount determined under subsection (4), cal- +culated without reference to this subsection and sub- +paragraph (b)(ii) of the definition eligible individual +in section 122.6. +Months specified +(4.2) For the purposes of this section, the months speci- +fied for a taxation year are April, July and October of the +immediately following taxation year and January of the +second immediately following taxation year. +Authority to specify amounts +(5) The Minister of Finance may specify amounts for a +province in relation to a month specified for a taxation +year for the purposes of this section. If the Minister of Fi- +nance does not specify a particular amount that is rele- +vant for the purposes of this section, that particular +amount is deemed to be nil for the purpose of applying +this section. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +11 + +Page 35 +Deemed rebate in respect of fuel charges +(6) The amount deemed by this section to have been paid +during a specified month on account of tax payable for a +taxation year is deemed to have been paid during the +specified month as a rebate in respect of charges levied +under Part 1 of the Greenhouse Gas Pollution Pricing Act +in respect of the relevant province. +Only one eligible individual +(7) If an individual is a qualified relation of another indi- +vidual in relation to a month specified for a taxation year +and both those individuals would be, but for this subsec- +tion, eligible individuals in relation to the specified +month, only the individual that the Minister designates is +the eligible individual in relation to the specified month. +Exception — qualified dependant +(8) If a person would, if this Act were read without refer- +ence to this subsection, be the qualified dependant of two +or more individuals, in relation to a month specified for a +taxation year, +(a) the person is deemed to be a qualified dependant, +in relation to that month, of the one of those individu- +als on whom those individuals agree; +(b) in the absence of an agreement referred to in para- +graph (a), the person is deemed to be, in relation to +that month, a qualified dependant of the individuals, if +any, who are, at the beginning of that month, eligible +individuals (as defined in section 122.6, but the defini- +tion qualified dependant in that section having the +meaning assigned by subsection (1)) in respect of that +person; and +(c) in any other case, the person is deemed to be, in +relation to that month, a qualified dependant only of +the individual that the Minister designates. +Notification to Minister +(8.1) An individual shall notify the Minister of the occur- +rence of any of the following events before the end of the +month following the month in which the event occurs: +(a) the individual ceases to be an eligible individual; +(b) a person becomes or ceases to be the individual’s +qualified relation; and +(c) a person ceases to be a qualified dependant of the +individual, otherwise than because of attaining the age +of 19 years. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +11 + +Page 36 +(4) Subsections (1) to (3) apply to payments made +after June 2022 in respect of the 2021 and subse- +quent taxation years. +12 (1) The Act is amended by adding the follow- +ing after section 125.1: +Definitions +125.2 (1) The following definitions apply in this section. +adjusted business income, of a corporation for a taxa- +tion year, has the same meaning as in Part LII of the In- +come Tax Regulations. (revenu rajusté tiré d’une en- +treprise) +cost of capital, of a corporation for a taxation year, has +the same meaning as in Part LII of the Income Tax Regu- +lations. (coût en capital) +cost of labour, of a corporation for a taxation year, has +the same meaning as in Part LII of the Income Tax Regu- +lations. (coût en main-d’œuvre) +zero-emission technology manufacturing profits, of a +corporation for a taxation year, means the amount deter- +mined by the formula +A × B × C +where +A +is the corporation’s adjusted business income for the +taxation year; +B +is the fraction determined by the formula +D ÷ E +where +D +is the total of the corporation’s ZETM cost of +capital and ZETM cost of labour for the taxation +year, and +E +is the total of the corporation’s cost of capital +and cost of labour for the taxation year; and +C +is +(a) if the fraction determined for B is at least 0.9, +the fraction determined by the formula +F ÷ G +where +F +is the amount determined for E, and +G +is the amount determined for D; and +(b) 1, in any other case. (bénéfices de fabrica- +tion de technologies à zéro émission) +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 11-12 + +Page 37 +ZETM cost of capital, of a corporation for a taxation +year, has the same meaning as in Part LII of the Income +Tax Regulations. (coût en capital de FTZE) +ZETM cost of labour, of a corporation for a taxation +year, has the same meaning as in Part LII of the Income +Tax Regulations. (coût en main-d’œuvre de FTZE) +Zero-emission technology manufacturing +(2) There may be deducted from the tax otherwise +payable under this Part by a corporation for a taxation +year the amount determined by the formula +(A × B) + (C × D) +where +A +is +(a) 0.075, if the taxation year begins after 2021 and +before 2029, +(b) 0.05625, if the taxation year begins after 2028 +and before 2030, +(c) 0.0375, if the taxation year begins after 2029 +and before 2031, +(d) 0.01875, if the taxation year begins after 2030 +and before 2032, and +(e) nil, in any other case; +B +is the least of +(a) the corporation’s zero-emission technology +manufacturing profits for the taxation year, +(b) the amount of the corporation’s adjusted busi- +ness income for the taxation year (determined +without reference to section 5203 of the Income +Tax Regulations) less +(i) if +the +corporation +was +a +Canadian- +controlled private corporation throughout the +taxation year, the least of the amounts, if any, +determined under paragraphs 125(1)(a) to (c) +in respect of the corporation for the taxation +year, and +(ii) in any other case, nil, and +(c) the amount, if any, by which the corporation’s +taxable income for the taxation year exceeds the +total of +(i) if +the +corporation +was +a +Canadian- +controlled private corporation throughout the +taxation year, the least of the amounts, if any, +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +12 + +Page 38 +determined under paragraphs 125(1)(a) to (c) +in respect of the corporation for the taxation +year, +(ii) the corporation’s aggregate investment +income (as defined in subsection 129(4)) for +the taxation year, and +(iii) the amount determined by multiplying the +total of the amounts deducted under subsection +126(2) from its tax for the taxation year other- +wise payable under this Part, by the relevant +factor for the taxation year; +C +is +(a) 0.045, if the taxation year begins after 2021 and +before 2029, +(b) 0.03375, if the taxation year begins after 2028 +and before 2030, +(c) 0.0225, if the taxation year begins after 2029 +and before 2031, +(d) 0.01125, if the taxation year begins after 2030 +and before 2032, and +(e) nil, in any other case; and +D +is +(a) if the corporation was a Canadian-controlled +private corporation throughout the taxation year, +the lesser of +(i) the least of the amounts, if any, determined +under paragraphs 125(1)(a) to (c) in respect of +the corporation for the taxation year, and +(ii) the amount determined by the formula +E − F +where +E +is the corporation’s zero-emission technol- +ogy manufacturing profits for the taxation +year, and +F +is the amount determined for B, and +(b) nil, in any other case. +(2) Subsection (1) is deemed to have come into +force on January 1, 2022. +13 Section 125.4 of the Act is amended by adding +the following after subsection (1): +COVID-19 — production commencement time +(1.1) The reference to “two years” in subparagraph +(b)(iii) of the definition production commencement +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 12-13 + +Page 39 +time in subsection (1) is to be read as a reference to +“three years” in respect of film or video productions for +which the labour expenditure of the corporation in re- +spect of the production for the taxation year ending in +2020 or 2021 was greater than nil. +14 (1) Section 125.7 of the Act is amended by +adding the following after subsection (15): +Extension of time by Minister +(16) For the purposes of determining whether an eligible +entity is a qualifying entity, a qualifying recovery entity +or a qualifying renter, the Minister may, at any time, ex- +tend the time for filing an application under this section. +(2) Subsection (1) is deemed to have come into +force on April 11, 2020. +15 (1) The definition earned income in subsection +146(1) of the Act is amended by adding the follow- +ing after paragraph (b): +(b.01) an amount included under paragraph 56(1)(n) +in computing the taxpayer’s income for a period in the +year throughout which the taxpayer was resident in +Canada in connection with a program that consists +primarily of research and does not lead to a diploma +from a college or a collège d’enseignement général et +professionnel, or a bachelor, masters, doctoral or +equivalent degree, +(2) Subject to subsection (3), subsection (1) ap- +plies in respect of income received in the 2021 and +subsequent taxation years. +(3) Before 2026, the taxpayer may file an election +with the Minister of National Revenue to include +income that is described in paragraph (b.01) of +the definition earned income in subsection 146(1) +of the Act, and received by the taxpayer after 2010 +and before 2021, for the purposes of computing +the taxpayer’s RRSP deduction limit (as defined in +that subsection) on or after the date the election +is filed. +16 (1) The definition charitable purposes in sub- +section 149.1(1) of the Act is replaced by the fol- +lowing: +charitable purposes includes making qualifying dis- +bursements; (fins de bienfaisance) +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 13-16 + +Page 40 +(2) Paragraph (a.1) of the definition charitable or- +ganization in subsection 149.1(1) of the Act is re- +placed by the following: +(a.1) all the resources of which are devoted to charita- +ble activities carried on by the organization itself or to +making qualifying disbursements, +(3) Subsection 149.1(1) of the Act is amended by +adding the following in alphabetical order: +grantee organization includes a person, club, society, +association or organization or prescribed entity, but does +not include a qualified donee; (organisation donataire) +qualifying disbursement means a disbursement by a +charity, by way of a gift or by otherwise making resources +available, +(a) subject to subsection (6.001), to a qualified donee, +or +(b) to a grantee organization, if +(i) the disbursement is in furtherance of a charita- +ble purpose (determined without reference to the +definition charitable purposes in this subsection) +of the charity, +(ii) the charity ensures that the disbursement is ex- +clusively applied to charitable activities in further- +ance of a charitable purpose of the charity, and +(iii) the charity maintains documentation sufficient +to demonstrate +(A) the purpose for which the disbursement is +made, and +(B) that the disbursement is exclusively applied +by the grantee organization to charitable activi- +ties in furtherance of a charitable purpose of the +charity; (versement admissible) +(4) Paragraphs 149.1(2)(b) and (c) of the Act are +replaced by the following: +(b) fails to expend in any taxation year, on charitable +activities carried on by it and by way of gifts made by +it that are qualifying disbursements, amounts the total +of which is at least equal to the organization’s dis- +bursement quota for that year; or +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +16 + +Page 41 +(c) makes a disbursement, other than +(i) a disbursement made in the course of charitable +activities carried on by it, or +(ii) a qualifying disbursement. +(5) Paragraphs 149.1(3)(b) and (b.1) of the Act are +replaced by the following: +(b) fails to expend in any taxation year, on charitable +activities carried on by it and by way of gifts made by +it that are qualifying disbursements, amounts the total +of which is at least equal to the foundation’s disburse- +ment quota for that year; +(b.1) makes a disbursement, other than +(i) a disbursement made in the course of charitable +activities carried on by it, or +(ii) a qualifying disbursement; +(6) Paragraphs 149.1(4)(b) and (b.1) of the Act are +replaced by the following: +(b) fails to expend in any taxation year, on charitable +activities carried on by it and by way of gifts made by +it that are qualifying disbursements, amounts the total +of which is at least equal to the foundation’s disburse- +ment quota for that year; +(b.1) makes a disbursement, other than +(i) a disbursement made in the course of charitable +activities carried on by it, or +(ii) a qualifying disbursement; +(7) Paragraph 149.1(4.1)(d) of the Act is replaced +by the following: +(d) of a registered charity, if it has in a taxation year +received a gift of property (other than a designated +gift) from another registered charity with which it +does not deal at arm’s length and it has expended, be- +fore the end of the next taxation year, in addition to its +disbursement quota for each of those taxation years, +an amount that is less than the fair market value of the +property, on charitable activities carried on by it or by +way of gifts that are qualified disbursements to quali- +fied donees or grantee organizations, with which it +deals at arm’s length; +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +16 + +Page 42 +(8) Subsection 149.1(6) of the Act is replaced by +the following: +Devotion of resources — charitable activity +(6) A charitable organization shall be considered to be +devoting its resources to charitable activities carried on +by it to the extent that it uses those resources in carrying +on a related business. +Qualifying disbursement limit — charitable +organizations +(6.001) In any taxation year, disbursements of income +of a charitable organization by way of gifts to a qualified +donee (other than disbursements of income to a regis- +tered charity that the Minister has designated in writing +as a charity associated with the charitable organization) +in excess of 50% of the charitable organization’s income +for that year are not qualifying disbursements. +(9) Subsection 149.1(10) of the Act is repealed. +(10) Subsections 149.1(20) and (21) of the Act are +replaced by the following: +Rule regarding disbursement excess +(20) Where a registered charity has expended a dis- +bursement excess for a taxation year, the charity may, for +the purpose of determining whether it complies with the +requirements of paragraph (2)(b), (3)(b) or (4)(b), as the +case may be, for the immediately preceding taxation year +of the charity and five or less of its immediately subse- +quent taxation years, include in the computation of the +amounts expended on charitable activities carried on by +it and by way of gifts made by it that are qualifying dis- +bursements, such portion of that disbursement excess as +was not so included under this subsection for any preced- +ing taxation year. +Definition of disbursement excess +(21) For the purpose of subsection (20), disbursement +excess, for a taxation year of a charity, means the +amount, if any, by which the total of amounts expended +in the year by the charity on charitable activities carried +on by it and by way of gifts made by it that are qualifying +disbursements exceeds its disbursement quota for the +year. +17 (1) Paragraph 152(1.2)(d) of the Act is replaced +by the following: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 16-17 + +Page 43 +(d) if the Minister determines the amount deemed by +subsection 122.5(3), (3.001) or 122.8(4) to have been +paid by an individual for a taxation year to be nil, sub- +section (2) does not apply to the determination unless +the individual requests a notice of determination from +the Minister. +(2) Subsection (1) applies to payments made after +June 2022 in respect of the 2021 and subsequent +taxation years. +18 (1) Paragraph 160.1(1)(b) of the Act is replaced +by the following: +(b) the taxpayer shall pay to the Receiver General in- +terest at the prescribed rate on the excess (other than +any portion thereof that can reasonably be considered +to arise as a consequence of the operation of section +122.5, 122.61 or 122.8) from the day it became payable +to the date of payment. +(2) Section 160.1 of the Act is amended by adding +the following after subsection (1.1): +Liability for refund — Climate Action Incentive +(1.2) If a person is a qualified relation of an individual +(within the meaning assigned by subsection 122.8(1)), in +relation to one or more months specified for a taxation +year, the person and the individual are jointly and sever- +ally, or solidarily, liable to pay the lesser of +(a) any excess described in subsection (1) that was re- +funded in respect of the taxation year to, or applied to +a liability of, the individual as a consequence of the +operation of section 122.8; and +(b) the total of the amounts deemed by subsection +122.8(4) to have been paid by the individual during +those specified months. +(3) Subsection 160.1(2) of the Act is replaced by +the following: +Liability under other provisions +(2) Subsections (1.1) and (1.2) do not limit a person’s lia- +bility under any other provision of this Act. +(4) Subsection 160.1(3) of the Act is replaced by +the following: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 17-18 + +Page 44 +Assessment +(3) The Minister may at any time assess a taxpayer in re- +spect of any amount payable by the taxpayer because of +any of subsections (1) to (1.2) or for which the taxpayer is +liable because of subsection (2.1) or (2.2), and the provi- +sions of this Division (including, for greater certainty, the +provisions in respect of interest payable) apply, with any +modifications that the circumstances require, in respect +of an assessment made under this section, as though it +were made under section 152 in respect of taxes payable +under this Part, except that no interest is payable on an +amount assessed in respect of an excess referred to in +subsection (1) that can reasonably be considered to arise +as a consequence of the operation of section 122.5, 122.61 +or 122.8. +(5) Subsections (1) to (4) apply to payments made +after June 2022 in respect of the 2021 and subse- +quent taxation years. +19 (1) Paragraph 163(2)(c.4) of the Act is replaced +by the following: +(c.4) the amount, if any, by which +(i) the total of all amounts each of which is an +amount that would be deemed by section 122.8 to +be paid by that person during a month specified for +the year or, where that person is the qualified rela- +tion of an individual in relation to that specified +month (within the meaning assigned by subsection +122.8(1)), by that individual, if that total were calcu- +lated by reference to the information provided in +the person’s return of income (within the meaning +assigned by subsection 122.8(1)) for the year +exceeds +(ii) the total of all amounts each of which is an +amount that is deemed by section 122.8 to be paid +by that person or by an individual of whom the per- +son is the qualified relation in relation to a month +specified for the year (within the meaning assigned +by subsection 122.8(1)), +(2) Subsection (1) applies to payments made after +June 2022 in respect of the 2021 and subsequent +taxation years. +20 (1) Section 164 of the Act is amended by +adding the following after subsection (2.2): +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 18-20 + +Page 45 +Application respecting refunds — Climate Action +Incentive +(2.21) Where an amount deemed under section 122.8 to +be paid by an individual during a month specified for a +taxation year is applied under subsection (2) to a liability +of the individual and the individual’s return of income for +the year is filed on or before the individual’s balance-due +day for the year, the amount is deemed to have been so +applied on the day on which the amount would have been +refunded if the individual were not liable to make a pay- +ment to Her Majesty in right of Canada. +(2) The portion of subsection 164(3) of the Act be- +fore paragraph (a) is replaced by the following: +Interest on refunds and repayments +(3) If, under this section, an amount in respect of a taxa- +tion year (other than an amount, or a portion of the +amount, that can reasonably be considered to arise from +the operation of section 122.5, 122.61, 122.8 or 125.7) is +refunded or repaid to a taxpayer or applied to another li- +ability of the taxpayer, the Minister shall pay or apply in- +terest on it at the prescribed rate for the period that be- +gins on the day that is the latest of the days referred to in +the following paragraphs and that ends on the day on +which the amount is refunded, repaid or applied: +(3) Subsections (1) and (2) apply to payments +made after June 2022 in respect of the 2021 and +subsequent taxation years. +21 Paragraph 168(1)(f) of the Act is replaced by +the following: +(f) in the case of a registered charity, registered Cana- +dian amateur athletic association or registered jour- +nalism organization, accepts a gift the granting of +which was expressly or implicitly conditional on the +charity, association or organization making a gift to +another person, club, society, association or organiza- +tion other than a qualified donee. +22 (1) Subsection 188(1.2) of the Act is replaced +by the following: +Winding-up period +(1.2) In this Part, the winding-up period of a charity is +the period +(a) that begins immediately after the earliest of the +days on which +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 20-22 + +Page 46 +(i) the Minister issues a notice of intention to re- +voke the registration of the charity under any of +subsections 149.1(2) to (4.1) and 168(1), +(ii) the charity becomes a listed terrorist entity, and +(iii) it is determined, under subsection 7(1) of the +Charities Registration (Security Information) Act, +that a certificate served in respect of the charity un- +der subsection 5(1) of that Act is reasonable on the +basis of information and evidence available, and +(b) that ends on the day that is the latest of +(i) the day, if any, on which the charity files a re- +turn under subsection 189(6.1) for the taxation year +deemed by subsection (1) to have ended, but not +later than the day on which the charity is required +to file that return, +(ii) the day on which the Minister last issues a no- +tice of assessment of tax payable under subsection +(1.1) for that taxation year by the charity, and +(iii) if the charity has filed a notice of objection or +appeal in respect of that assessment, the day on +which the Minister may take a collection action un- +der section 225.1 in respect of that tax payable. +(2) Subsection (1) is deemed to have come into +force on June 29, 2021. +23 (1) Paragraph 188.1(5)(c) of the Act is replaced +by the following: +(c) a qualifying disbursement. +(2) Subsection 188.1(12) of the Act is replaced by +the following: +Gifts not at arm’s length +(12) If a registered charity has in a taxation year received +a gift of property (other than a designated gift) from an- +other registered charity with which it does not deal at +arm’s length and it has expended, before the end of the +next taxation year — in addition to its disbursement quo- +ta for each of those taxation years — an amount that is +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 22-23 + +Page 47 +less than the fair market value of the property on charita- +ble activities carried on by it or by way of gifts made by it +that are qualifying disbursements to qualified donees or +grantee organizations, with which it deals at arm’s +length, the registered charity is liable to a penalty under +this Act for that subsequent taxation year equal to 110% +of the difference between the fair market value of the +property and the additional amount expended. +24 Paragraph 241(4)(d) of the Act is amended by +striking out “or” at the end of subparagraph +(xvii), by adding “or” at the end of subparagraph +(xviii) and by adding the following after subpara- +graph (xviii): +(xix) to an official of the Canada Revenue Agency +solely for the purpose of the collection of amounts +owing to Her Majesty in right of Canada under the +Canada Emergency Business Account program es- +tablished by Export Development Canada in accor- +dance with an authorization made under subsection +23(1) of the Export Development Act; +R.S., c. E-15 +Excise Tax Act +25 Paragraph 295(5)(d) of the Excise Tax Act is +amended by striking out “or” at the end of sub- +paragraph (viii), by adding “or” at the end of sub- +paragraph (ix) and by adding the following after +subparagraph (ix): +(x) to an official of the Canada Revenue Agency +solely for the purpose of the collection of amounts +owing to Her Majesty in right of Canada under the +Canada Emergency Business Account program es- +tablished by Export Development Canada in accor- +dance with an authorization made under subsection +23(1) of the Export Development Act; +1992, c. 48, Sch. +Children’s Special Allowances Act +26 (1) Section 2 of the Children’s Special Al- +lowances Act is amended by adding the following +in alphabetical order: +Indigenous governing body means an Indigenous +governing body (as defined in section 1 of An Act re- +specting First Nations, Inuit and Métis children, youth +and families) that +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 23-26 + +Page 48 +(a) has given notice under subsection 20(1) of that +Act; +(b) has requested a coordination agreement under +subsection 20(2) of that Act; or +(c) meets prescribed conditions. (corps dirigeant au- +tochtone) +(2) Subsection (1) is deemed to have come into +force on January 1, 2020. +27 (1) Paragraphs 3(1)(a) and (b) of the Act are +replaced by the following: +(a) resides in an institution, a group foster home, the +private home of foster parents or in the private home +of a guardian, tutor or other individual occupying a +similar role for the month, under a decree, order or +judgment of a competent tribunal and is maintained +by +(i) a department or agency of the government of +Canada or a province, or +(ii) an agency appointed by a province, including +an authority established under the laws of a +province, or by an agency appointed by such an au- +thority, for the purpose of administering any law of +the province for the protection and care of children; +(b) is maintained by an institution licensed or other- +wise authorized under the law of the province to have +the custody or care of children; or +(c) resides in an institution, a group foster home, the +private home of foster parents or in the private home +of a guardian, tutor or other individual occupying a +similar role for the month, under the laws of an In- +digenous governing body and is maintained by +(i) the Indigenous governing body, +(ii) a department or agency of the Indigenous gov- +erning body, or +(iii) an agency appointed by the Indigenous gov- +erning body, including an authority established un- +der the laws of the Indigenous governing body, or +by an agency appointed by such an authority, for +the purpose of administering any law of the Indige- +nous governing body for the protection and care of +children. +(2) Subsection (1) is deemed to have come into +force on January 1, 2020. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Children’s Special Allowances Act +Sections 26-27 + +Page 49 +28 (1) Paragraph 4(1)(a) of the Act is replaced by +the following: +(a) an application therefor has been made in the pre- +scribed manner by the department, agency, institution +or Indigenous governing body referred to in subsec- +tion 3(1) that maintains the child; and +(2) Subsection 4(3) of the Act is replaced by the +following: +No allowance payable +(3) No special allowance is payable for the month in +which the child in respect of whom the special allowance +is payable commences to be maintained by a department, +agency, institution or Indigenous governing body, and no +special allowance is payable in respect of a child for the +month in which the child is born or commences to reside +in Canada. +(3) Paragraph 4(4)(a) of the Act is replaced by the +following: +(a) ceases to be maintained by the department, agen- +cy, institution or Indigenous governing body; +(4) Subsections (1) to (3) are deemed to have +come into force on January 1, 2020. +29 (1) Sections 5 and 6 of the Act are replaced by +the following: +Recipient of special allowance +5 Where payment of a special allowance is approved in +respect of a child, the special allowance shall, in such +manner and at such times as are determined by the Min- +ister, be paid to the department, agency, institution or +Indigenous governing body referred to in subsection 3(1) +that maintains the child or, in the prescribed circum- +stances, to a foster parent. +Report +6 Where a special allowance ceases to be payable in re- +spect of a child for a reason referred to in paragraph +4(4)(a), (b) or (c), the chief executive officer of the de- +partment, agency, institution or Indigenous governing +body that made the application under paragraph 4(1)(a) +in respect of the child shall, as soon as possible after the +special allowance ceases to be payable in respect of the +child, notify the Minister in the prescribed form and +manner. +(2) Subsection (1) is deemed to have come into +force on January 1, 2020. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Children’s Special Allowances Act +Sections 28-29 + +Page 50 +30 (1) Subsections 9(1) and (2) of the English ver- +sion of the Act are replaced by the following: +Return of special allowance +9 (1) Any person, department, agency, institution or In- +digenous governing body that has received or obtained +by cheque or otherwise payment of a special allowance +under this Act to which the person, department, agency, +institution or Indigenous governing body is not entitled, +or payment in excess of the amount to which the person, +department, agency, institution or Indigenous governing +body is entitled, shall, as soon as possible, return the +cheque or the amount of the payment, or the excess +amount, as the case may be. +Recovery of amount of payment +(2) Where a person, department, agency, institution or +Indigenous governing body has received or obtained pay- +ment of a special allowance under this Act to which the +person, department, agency, institution or Indigenous +governing body is not entitled, or payment in excess of +the amount to which the person, department, agency, in- +stitution or Indigenous governing body is entitled, the +amount of the special allowance or the amount of the ex- +cess, as the case may be, constitutes a debt due to Her +Majesty. +(2) Subsection 9(3) of the Act is replaced by the +following: +Deduction from subsequent special allowance +(3) Where any person, department, agency, institution or +Indigenous governing body has received or obtained pay- +ment of a special allowance under this Act to which the +person, department, agency, institution or Indigenous +governing body is not entitled, or payment in excess of +the amount to which the person, department, agency, in- +stitution or Indigenous governing body is entitled, the +amount of the special allowance or the amount of the ex- +cess, as the case may be, may be deducted and retained in +such manner as is prescribed out of any special allowance +to which the person, department, agency, institution or +Indigenous governing body is or subsequently becomes +entitled under this Act. +(3) Subsections (1) and (2) are deemed to have +come into force on January 1, 2020. +31 (1) Section 11 of the Act is replaced by the fol- +lowing: +Agreements for exchange of information +11 The Minister may enter into an agreement with the +government of any province, or an Indigenous governing +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Children’s Special Allowances Act +Sections 30-31 + +Page 51 +body, for the purpose of obtaining information in con- +nection with the administration or enforcement of this +Act or the regulations and of furnishing to that govern- +ment, or Indigenous governing body, under prescribed +conditions, any information obtained by or on behalf of +the Minister in the course of the administration or en- +forcement of this Act or the regulations, if the Minister is +satisfied that the information to be furnished to that gov- +ernment, or Indigenous governing body, under the agree- +ment is to be used for the purpose of the administration +of a social program, income assistance program or health +insurance program in the province or of the Indigenous +governing body. +(2) Subsection (1) is deemed to have come into +force on January 1, 2020. +32 (1) Paragraph 13(a) of the English version of +the Act is replaced by the following: +(a) providing for the suspension of payment of a spe- +cial allowance during any investigation respecting the +eligibility of a department, agency, institution or In- +digenous governing body to receive the special al- +lowance and specifying the circumstances in which +payment of a special allowance, the payment of which +has been suspended, may be resumed; +(2) Paragraph 13(c) of the Act is replaced by the +following: +(c) specifying for the purposes of this Act the circum- +stances in which a child shall be considered to be +maintained by a department, agency, institution or In- +digenous governing body; and +(3) Subsections (1) and (2) are deemed to have +come into force on January 1, 2020. +2002, c. 22 +Excise Act, 2001 +33 Paragraph 211(6)(e) of the Excise Act, 2001 is +amended by striking out “or” at the end of sub- +paragraph (ix), by adding “or” at the end of sub- +paragraph (x) and by adding the following after +subparagraph (x): +(xi) to an official of the Agency solely for the pur- +pose of the collection of amounts owing to Her +Majesty in right of Canada under the Canada Emer- +gency Business Account program established by Ex- +port Development Canada in accordance with an +authorization made under subsection 23(1) of the +Export Development Act; +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Children’s Special Allowances Act +Sections 31-33 + +Page 52 +C.R.C., c. 945 +Income Tax Regulations +34 (1) Section 1100 of the Income Tax Regula- +tions is amended by adding the following before +subsection (1): +Immediate expensing +(0.1) For the purposes of paragraph 20(1)(a) of the Act, a +deduction is allowed in computing an eligible person or +partnership’s income for each taxation year equal to the +lesser of +(a) the eligible person or partnership’s immediate ex- +pensing limit for the taxation year, +(b) the undepreciated capital cost to the eligible per- +son or partnership as of the end of the taxation year +(before making any deduction under this Part for the +taxation year) of property that is designated immedi- +ate expensing property for the taxation year, and +(c) if the eligible person or partnership is not a +Canadian-controlled private corporation, the amount +of income, if any, earned from the source of income +that is a business or property (computed without re- +gard to paragraph 20(1)(a) of the Act) in which the rel- +evant designated immediate expensing property is +used for the eligible person or partnership’s taxation +year. +Undepreciated capital cost — immediate expensing +(0.2) Before computing any other deduction permitted +under this Part and Schedules II to VI, the amount of any +deduction made under subsection (0.1) by an eligible per- +son or partnership in respect of a designated immediate +expensing property of a prescribed class shall be deduct- +ed from the undepreciated capital cost of the particular +class to which the property belongs. +Expenditures excluded from paragraph (0.1)(b) +(0.3) For the purposes of paragraph (0.1)(b), in respect +of property of a class in Schedule II that is immediate ex- +pensing property of an eligible person or partnership +solely because of subparagraph (c)(i) of the definition im- +mediate expensing property in subsection 1104(3.1), +amounts incurred by any person or partnership in re- +spect of the property are not to be included in +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +34 + +Page 53 +determining the undepreciated capital cost to the eligible +person or partnership as of the end of the taxation year +(before making any deduction under this Part for the tax- +ation year) of property that is designated immediate ex- +pensing property for the taxation year if the amounts are +incurred before April 19, 2021 (if the eligible person or +partnership is a Canadian-controlled private corpora- +tion) or before 2022 (if the eligible person or partnership +is an individual or Canadian partnership), unless +(a) the property was acquired by an eligible person or +partnership from another person or partnership (re- +ferred to in this paragraph as the “transferee” and the +“transferor”, respectively) +(i) if the transferee is a Canadian-controlled private +corporation, after April 18, 2021, or +(ii) if the transferee is an individual or a Canadian +partnership, after December 31, 2021; +(b) the transferee was either +(i) the eligible person or partnership, or +(ii) a person or partnership that does not deal at +arm’s length with the eligible person or partner- +ship; and +(c) the transferor +(i) dealt at arm’s length with the transferee, and +(ii) held the property as inventory. +(2) The portion of subsection 1100(1.1) of the Reg- +ulations before paragraph (a) is replaced by the +following: +(1.1) Despite subsections (0.1), (1) and (3), the amount +deductible by a taxpayer for a taxation year in respect of +a property that is a specified leasing property at the end +of the year is the lesser of +(3) Subsection 1100(1.12) of the Regulations is re- +placed by the following: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +34 + +Page 54 +(1.12) Despite subsections (0.1), (1) and (1.1), where, in +a taxation year, a taxpayer has acquired a property that +was not used by the taxpayer for any purpose in that year +and the first use of the property by the taxpayer is a lease +of the property in respect of which subsection (1.1) ap- +plies, the amount allowed to the taxpayer under subsec- +tions (0.1) and (1) in respect of the property for the year +shall be deemed to be nil. +(4) The portion of subsection 1100(11) of the Reg- +ulations before paragraph (a) is replaced by the +following: +(11) Despite subsections (0.1) and (1), in no case shall +the aggregate of deductions, each of which is a deduction +in respect of property of a prescribed class owned by a +taxpayer that includes rental property owned by him, +otherwise allowed to the taxpayer by virtue of subsection +(0.1) or (1) in computing his income for a taxation year, +exceed the amount, if any, by which +(5) The portion of subsection 1100(15) of the Reg- +ulations before paragraph (a) is replaced by the +following: +(15) Despite subsections (0.1) and (1), in no case shall +the aggregate of deductions, each of which is a deduction +in respect of property of a prescribed class that is leasing +property owned by a taxpayer, otherwise allowed to the +taxpayer under subsection (0.1) or (1) in computing his +income for a taxation year, exceed the amount, if any, by +which +(6) The portion of subsection 1100(20.1) of the +Regulations before paragraph (a) is replaced by +the following: +(20.1) The total of all amounts each of which is a deduc- +tion in respect of computer tax shelter property allowed +to the taxpayer under subsection (0.1) or (1) in comput- +ing a taxpayer’s income for a taxation year shall not ex- +ceed the amount, if any, by which +(7) Subsection 1100(21.1) of the Regulations is re- +placed by the following: +(21.1) Despite subsections (0.1) and (1), where a taxpay- +er has acquired property described in paragraph (s) of +Class 10 in Schedule II, or in paragraph (m) of Class 12 of +Schedule II, the deduction in respect of the property oth- +erwise allowed to the taxpayer under subsection (0.1) or +(1) in computing the taxpayer’s income for a taxation +year shall not exceed the amount that it would be if the +capital cost to the taxpayer of the property were reduced +by the portion of any debt obligation of the taxpayer +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +34 + +Page 55 +outstanding at the end of the year that is convertible into +an interest or, for civil law, a right in the property or an +interest in the taxpayer. +(8) The portion of subsection 1100(24) of the Reg- +ulations before paragraph (a) is replaced by the +following: +(24) Despite subsections (0.1) and (1), in no case shall +the total of deductions, each of which is a deduction in +respect of property of Class 34, 43.1, 43.2, 47 or 48 in +Schedule II that is specified energy property owned by a +taxpayer, otherwise allowed to the taxpayer under sub- +section (0.1) or (1) in computing the taxpayer’s income +for a taxation year, exceed the amount, if any, by which +(9) Subsections (1) to (8) are deemed to have +come into force on April 19, 2021. +35 (1) Subsection 1102(20.1) of the Regulations is +replaced by the following: +(20.1) For the purposes of subsections 1100(0.3) and +(2.02) and 1104(3.1) and (4), a particular person or part- +nership and another person or partnership shall be con- +sidered not to be dealing at arm’s length with each other +in respect of the acquisition or ownership of a property if, +in the absence of this subsection, they would be consid- +ered to be dealing at arm’s length with each other and it +may reasonably be considered that the principal purpose +of any transaction or event, or a series of transactions or +events, is to cause +(a) the property to qualify as accelerated investment +incentive property or immediate expensing property; +or +(b) the particular person or partnership and the other +person or partnership to satisfy the condition in sub- +clause +1100(2.02)(a)(i)(C)(I) +or +subparagraph +1100(0.3)(c)(i). +(2) Subsection (1) is deemed to have come into +force on April 19, 2021. +36 (1) Section 1104 of the Regulations is amended +by adding the following after subsection (3): +Definitions +(3.1) The following definitions apply in this Part and +Schedules II to VI. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Sections 34-36 + +Page 56 +designated immediate expensing property for a taxa- +tion year, means property of an eligible person or part- +nership that +(a) is immediate expensing property of the eligible +person or partnership; +(b) became available for use by the eligible person or +partnership in the taxation year; and +(c) is designated as designated immediate expensing +property in prescribed form filed by the eligible person +or partnership with the Minister for the taxation year +(i) if the eligible person or partnership is a partner- +ship, on or before the day that is 12 months after +the day on which any member of the partnership is +required to file an information return under section +229 for the fiscal period to which the designation re- +lates, and +(ii) in any other case, on or before the day that is 12 +months after the eligible person or partnership’s +filing-due date for the taxation year to which the +designation relates. (bien relatif à la passation en +charges immédiate désigné) +eligible person or partnership for a taxation year, +means +(a) a corporation that was a Canadian-controlled pri- +vate corporation throughout the year; +(b) an individual (other than a trust) who was resident +in Canada throughout the year; or +(c) a Canadian partnership all of the members of +which were, throughout the period, persons described +in paragraph (a) or (b). (personne ou société de per- +sonnes admissible) +immediate expensing property for a taxation year, +means property of a prescribed class (other than proper- +ty included in any of Classes 1 to 6, 14.1, 17, 47, 49 and 51 +in Schedule II) of an eligible person or partnership that +(a) is acquired by the eligible person or partnership +(i) if the eligible person or partnership is a +Canadian-controlled +private +corporation, +after +April 18, 2021, or +(ii) if the eligible person or partnership is an indi- +vidual or a Canadian partnership, after Decem- +ber 31, 2021; +(b) becomes available for use +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +36 + +Page 57 +(i) if the eligible person or partnership is an indi- +vidual or a Canadian partnership all the members +of which are individuals throughout the taxation +year, before 2025, and +(ii) in any other case, before 2024; and +(c) meets either of the following conditions: +(i) the property +(A) has not been used for any purpose before it +was acquired by the eligible person or partner- +ship, and +(B) is not a property in respect of which an +amount has been deducted under paragraph +20(1)(a) or subsection 20(16) of the Act by any +person or partnership for a taxation year ending +before the time the property was acquired by the +eligible person or partnership, or +(ii) the property was not +(A) acquired in circumstances where +(I) the eligible person or partnership was +deemed to have been allowed or deducted an +amount under paragraph 20(1)(a) of the Act +in respect of the property in computing in- +come for previous taxation years, or +(II) the undepreciated capital cost of deprecia- +ble property of a prescribed class of the eligi- +ble person or partnership was reduced by an +amount determined by reference to the +amount by which the capital cost of the prop- +erty to the eligible person or partnership ex- +ceeds its cost amount, or +(B) previously owned or acquired by the eligible +person or partnership or by a person or partner- +ship with which the eligible person or partner- +ship did not deal at arm’s length at any time +when the property was owned or acquired by the +person or partnership. (bien relatif à la passa- +tion en charges immédiate) +taxpayer unless the context otherwise requires, includes +an eligible person or partnership. (contribuable) +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +36 + +Page 58 +Immediate expensing limit +(3.2) For the purposes of this Part and Schedules II to +VI, an eligible person or partnership’s immediate expens- +ing limit for a taxation year is $1,500,000 unless the eligi- +ble person or partnership is associated (within the mean- +ing of section 256 of the Act, as modified by subsection +(3.6)) in the taxation year with one or more other eligible +persons or partnerships, in which case, except as other- +wise provided in this section, its immediate expensing +limit is nil. +Associated eligible persons or partnerships +(3.3) Despite subsection (3.2), if all the eligible persons +or partnerships that are associated with each other (with- +in the meaning of section 256 of the Act, as modified by +subsection (3.6)) in a taxation year file with the Minister +in prescribed form an agreement that assigns for the pur- +pose of this Part and Schedules II to VI a percentage to +one or more of them for the year, the immediate expens- +ing limit for the year of each of the eligible persons or +partnerships is +(a) if the total of the percentages assigned in the +agreement does not exceed 100%, $1,500,000 multi- +plied by the percentage assigned to that eligible per- +son or partnership in the agreement; and +(b) in any other case, nil. +Failure to file agreement +(3.4) If any of the eligible persons or partnerships that +are associated with each other (within the meaning of +section 256 of the Act, as modified by subsection (3.6)) in +a taxation year has failed to file with the Minister an +agreement described in subsection (3.3) within 30 days +after notice in writing by the Minister has been forward- +ed to any of them that such an agreement is required for +the purpose of any assessment of tax under Part I of the +Act, the Minister shall, for the purpose of this Part and +Schedules II to VI, allocate an amount to one or more of +them for the taxation year. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +36 + +Page 59 +Special rules for immediate expensing limit +(3.5) Despite subsections (3.2) to (3.4), +(a) where an eligible person or partnership (in this +paragraph referred to as the “first person”) has more +than one taxation year ending in the same calendar +year and it is associated (within the meaning of sec- +tion 256 of the Act, as modified by subsection (3.6)) in +two or more of those taxation years with another eligi- +ble person or partnership (in this paragraph referred +to as the “other person”) that has a taxation year end- +ing in that calendar year, the immediate expensing +limit of the first person for each taxation year ending +in the calendar year in which it is associated (within +the meaning of section 256 of the Act, as modified by +subsection (3.6)) with the other person that ends after +the first such taxation year ending in that calendar +year is, subject to the application of paragraph (b), an +amount equal to the lesser of +(i) its immediate expensing limit determined under +subsection (3.3) or (3.4) for the first such taxation +year ending in the calendar year, and +(ii) its immediate expensing limit determined un- +der subsection (3.3) or (3.4) for the particular taxa- +tion year ending in the calendar year; and +(b) where an eligible person or partnership has a taxa- +tion year that is less than 51 weeks, its immediate ex- +pensing limit for the year is that proportion of its im- +mediate expensing limit for the year determined with- +out reference to this paragraph that the number of +days in the year is of 365. +Associated - interpretation +(3.6) For the purposes of this Part and Schedules II to +VI, in determining whether an eligible person or partner- +ship is associated (within the meaning of section 256 of +the Act, as modified by this subsection) with another eli- +gible person or partnership in a taxation year +(a) if the eligible person or partnership is a partner- +ship, +(i) the partnership is deemed to be a corporation +(in this subsection referred to as a “deemed corpo- +ration”) for the year, +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +36 + +Page 60 +(ii) the deemed corporation is deemed to have a +capital stock of a single class of shares, with a total +of 100 issued and outstanding shares, +(iii) each member (in this subsection referred to as +a “deemed shareholder”) of the deemed corporation +is deemed to be a shareholder of the deemed corpo- +ration, +(iv) each deemed shareholder of the deemed corpo- +ration is deemed to hold a number of shares in the +capital stock of the deemed corporation determined +by the formula +A × 100 +where +A +is equal to +(A) the deemed shareholder’s specified pro- +portion for the last fiscal period of the +deemed corporation, or +(B) if the deemed shareholder does not have +a specified proportion described in clause +(A), the proportion that the fair market val- +ue of the deemed shareholder’s interest in +the deemed corporation at that time is of the +fair market value of all interests in the +deemed corporation at that time, and +(v) the deemed corporation’s fiscal period is +deemed to be its taxation year; and +(b) if the eligible person or partnership is an individu- +al (other than a trust) who carries on a business or has +acquired immediate expensing property +(i) the individual, in respect of that business or +property, is deemed to be a corporation that is con- +trolled by the individual, and +(ii) the corporation’s taxation year is deemed to be +the same as the individual’s taxation year. +(2) Subsection (1) is deemed to have come into +force on April 19, 2021. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +36 + +Page 61 +37 (1) The definitions biogas and producer gas in +subsection 1104(13) of the Regulations are re- +placed by the following: +biogas means the gas produced by the anaerobic diges- +tion of specified waste material. (biogaz) +producer gas means +(a) in respect of a property of a taxpayer that becomes +available for use by the taxpayer before 2025, fuel the +composition of which, excluding its water content, is +all or substantially all non-condensable gases that is +generated primarily from eligible waste fuel or speci- +fied waste material using a thermo-chemical conver- +sion process and that is not generated from any feed- +stock other than eligible waste fuel, specified waste +material or fossil fuel; and +(b) in respect of a property of a taxpayer that becomes +available for use by the taxpayer after 2024, fuel +(i) the composition of which, excluding its water +content, is all or substantially all non-condensable +gases, +(ii) that is generated using a thermo-chemical con- +version process, +(iii) that is generated from feedstock of which no +more than 25% is fossil fuel when measured in +terms of energy content (expressed as a higher +heating value of the feedstock), and +(iv) that is not generated from any feedstock other +than eligible waste fuel, specified waste material or +fossil fuel. (gaz de gazéification) +(2) The definitions plant residue and separated or- +ganics in subsection 1104(13) of the Regulations +are replaced by the following: +plant residue means residue of plants (not including +wood waste and waste that no longer has the chemical +properties of the plants of which it is a residue) that +would otherwise be waste material. (résidus végétaux) +separated organics means organic waste (other than +waste that is considered to be toxic or hazardous waste +under any law of Canada or a province) that could be +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +37 + +Page 62 +disposed of in an eligible waste management facility or +eligible landfill site. (matières organiques séparées) +(3) Subsection 1104(13) of the Regulations is +amended by adding the following in alphabetical +order: +gaseous biofuel means a fuel produced all or substan- +tially all from specified waste material that is a gas at a +temperature of 15.6°C (60°F) and a pressure of 101 kPa +(14.7 psia). (biocarburants gazeux) +liquid biofuel means a fuel produced all or substantially +all from specified waste material or carbon dioxide that is +a liquid at a temperature of 15.6°C (60°F) and a pressure +of 101 kPa (14.7 psia). (biocarburants liquides) +solid biofuel means a fuel produced all or substantially +all from specified waste material that is a solid at a tem- +perature of 15.6°C (60°F) and a pressure of 101 kPa (14.7 +psia) (other than charcoal that is used for cooking or fu- +els with fossil fuel-derived ignition accelerants) and that +has undergone +(a) a thermo-chemical conversion process to increase +its carbon fraction and densification; or +(b) densification into pellets or briquettes. (biocarbu- +rants solides) +specified waste material means wood waste, plant +residue, municipal waste, sludge from an eligible sewage +treatment facility, spent pulping liquor, food and animal +waste, manure, pulp and paper by-product and separated +organics. (déchets déterminés) +(4) Subsection (1) applies in respect of property +acquired after April 18, 2021 that has not been +used or acquired for use before April 19, 2021. +(5) Subsections (2) and (3) are deemed to have +come into force on April 19, 2021. +38 (1) Clause 1104(17)(a)(ii)(A) of the Regulations +is replaced by the following: +(A) any of subparagraphs (d)(vii) to (ix), (xi), +(xiii), (xiv), (xvi), (xvii) and (xix) to (xxii) of +Class 43.1, or +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Sections 37-38 + +Page 63 +(2) Subsection (1) applies to property acquired +after April 18, 2021 that has not been used or ac- +quired for use before April 19, 2021. +39 Section 1106 of the Regulations is amended by +adding the following after subsection (1): +COVID-19 — Application for a +Certificate of Completion +(1.1) In respect of applications filed with the Minister of +Canadian Heritage in respect of film or video productions +for which the labour expenditure of the corporation in re- +spect of the production for the taxation years ending in +2020 or 2021 was greater than nil, the definition applica- +tion for a certificate of completion in subsection (1) is +to be read as follows: +application for a certificate of completion, in respect +of a film or video production, means an application by a +prescribed taxable Canadian corporation in respect of the +production, filed with the Minister of Canadian Heritage +before the day (in this Division referred to as “the pro- +duction’s application deadline”) that is the later of +(a) the day that is 24 months after the end of the cor- +poration’s taxation year in which the production’s +principal photography began, +(b) the day that is 18 months after the day referred to +in paragraph (a), if the corporation has filed, with the +Canada Revenue Agency, and provided to the Minister +of Canadian Heritage a copy of, a waiver described in +subparagraph 152(4)(a)(ii) of the Act, within the nor- +mal reassessment period for the corporation in respect +of the first and second taxation years ending after the +production’s principal photography began, or +(c) the day that is 12 months after the day referred to +in paragraph (b), if the corporation has filed, with the +Canada Revenue Agency, and provided to the Minister +of Canadian Heritage a copy of, a waiver described in +subparagraph 152(4)(a)(ii) of the Act, within the nor- +mal reassessment period for the corporation in respect +of the first, second and third taxation years ending af- +ter the production’s principal photography began. (de- +mande de certificat d’achèvement) +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Sections 38-39 + +Page 64 +COVID-19 — Excluded Production +(1.2) The reference to “2-year period” in subparagraph +(a)(iv) of the definition excluded production in subsec- +tion (1) is to be read as a reference to “three-year period” +in respect of film or video productions for which the +labour expenditure of the corporation in respect of the +production for the taxation years ending in 2020 or 2021 +was greater than nil. +40 The Regulations are amended by adding the +following after section 3702: +Information Returns +3703 For the purpose of subsection 149.1(14) of the Act, +the following is prescribed information for the public in- +formation return of a charity in a taxation year: +(a) in respect of each grantee organization that re- +ceived total qualifying disbursements from the charity +in excess of $5,000 in the taxation year, the name of +the grantee organization; +(b) the purpose of each qualifying disbursement made +to a grantee organization referred to in paragraph (a) +in the taxation year; and +(c) the total amount disbursed by the charity to each +grantee organization referred to in paragraph (a) in +the taxation year. +41 (1) Section 5202 of the Regulations is amended +by adding the following in alphabetical order: +qualified zero-emission technology manufacturing +activities means +(a) qualified activities that are +(i) performed in connection with the manufactur- +ing or processing of +(A) solar energy conversion equipment, includ- +ing solar thermal collectors, photovoltaic solar +arrays and custom supporting structures or +frames, but excluding passive solar heating +equipment, +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Sections 39-41 + +Page 65 +(B) wind energy conversion equipment, includ- +ing wind turbine towers, nacelles and rotor +blades, +(C) water energy conversion equipment, includ- +ing hydroelectric, water current, tidal and wave +energy conversion equipment, +(D) geothermal energy equipment, +(E) equipment for a ground source heat pump +system, +(F) electrical energy storage equipment used for +storage of renewable energy or for providing +grid-scale storage or other ancillary services, in- +cluding battery, compressed air and flywheel +storage systems, +(G) equipment used to charge, or to dispense hy- +drogen to, property included in clause (J), +(H) equipment used for the production of hydro- +gen by electrolysis of water, +(I) equipment that is a component of property +included in clauses (A) to (H), if such equipment +is purpose-built or designed exclusively to form +an integral part of that property, +(J) property that +(I) would be a zero-emission vehicle (as de- +fined in subsection 248(1) of the Act if that +definition were read without reference to its +paragraphs (b) and (c)), or +(II) is described in subparagraph (a)(i) of +Class 56 of Schedule II, and +(K) integral components of the powertrain of +property included in clause (J), including batter- +ies or fuel cells, and +(ii) not the manufacturing or processing of general +purpose components or equipment which compo- +nents or equipment are suitable for integration into +property other than property described in subpara- +graph (i); +(b) qualified activities that are performed in connec- +tion with production in Canada of +(i) hydrogen by electrolysis of water, +(ii) gaseous biofuel (as defined in subsection +1104(13)), +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +41 + +Page 66 +(iii) liquid biofuel (as defined in subsection +1104(13)), and +(iv) solid biofuel (as defined in subsection +1104(13)); and +(c) the conversion of a vehicle, performed in Canada, +into a property described in clause (a)(i)(J); (activités +admissibles de fabrication de technologies à zéro +émission) +ZETM cost of capital, of a corporation for a taxation +year, means the portion of the cost of capital of the cor- +poration for the year that reflects the extent to which +each property included in the calculation of the cost of +capital was used directly in qualified zero-emission tech- +nology manufacturing activities of the corporation during +the year; (coût en capital de FTZE) +ZETM cost of labour, of a corporation for a taxation +year, means the portion of the cost of labour of the corpo- +ration for that year that reflects the extent to which +(a) the salaries and wages included in the calculation +of the cost of labour were paid or payable to persons +for the portion of their time that they were directly en- +gaged in qualified zero-emission technology manufac- +turing activities of the corporation during the year, +and +(b) the other amounts included in the calculation of +the cost of labour were paid or payable to persons for +the performance of functions that would be directly +related to qualified zero-emission technology manu- +facturing activities of the corporation during the year +if those persons were employees of the corporation; +(coût en main-d’œuvre de FTZE) +(2) Subsection (1) is deemed to have come into +force on January 1, 2022. +42 (1) The portion of section 5204 of the Regula- +tions before the definition cost of capital is re- +placed by the following: +5204 If a corporation is a member of a partnership at +any time in a taxation year of the corporation, the follow- +ing definitions apply: +(2) Section 5204 of the Regulations is amended by +adding the following in alphabetical order: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Sections 41-42 + +Page 67 +ZETM cost of capital, of the corporation for the year, +means the portion of the cost of capital of the corporation +for that year that reflects the extent to which each prop- +erty included in the calculation of the cost of capital was +used directly in qualified zero-emission technology man- +ufacturing activities +(a) of the corporation during the year, or +(b) of the partnership during its fiscal period coincid- +ing with or ending in the year, as the case may be; +(coût en capital de FTZE) +ZETM cost of labour, of the corporation for the year, +means the portion of the cost of labour of the corporation +for that year that reflects the extent to which +(a) the salaries and wages included in the calculation +of the cost of labour were paid or payable to persons +for the portion of their time that they were directly en- +gaged in qualified zero-emission technology manufac- +turing activities +(i) of the corporation during the year, or +(ii) of the partnership during its fiscal period coin- +ciding with or ending in the year, and +(b) the other amounts included in the calculation of +the cost of labour were paid or payable to persons for +the performance of functions that would be directly +related to qualified zero-emission technology manu- +facturing activities of the corporation during the year, +or of the partnership during its fiscal period coincid- +ing with or ending in the year, if those persons were +employees of the corporation or the partnership, as +the case may be; (coût en main-d’œuvre de FTZE) +(3) Subsections (1) and (2) are deemed to have +come into force on January 1, 2022. +43 Section 9300 of the Regulations is amended by +adding the following after subsection (1): +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Sections 42-43 + +Page 68 +(1.1) The references to “24 months” in paragraphs +9300(1)(a) and (b) are to be read as references to “36 +months” in respect of film or video productions for which +the Canadian labour expenditure of the corporation in re- +spect of the production for the taxation years ending in +2020 or 2021 was greater than nil. +44 (1) Subparagraphs (c)(i) and (ii) of Class 43.1 +in Schedule II to the Regulations are replaced by +the following: +(i) part of a system that +(A) is used by the taxpayer, or by a lessee of the +taxpayer, to generate electrical energy, or both +electrical and heat energy, using only fuel that is +eligible waste fuel, fossil fuel, producer gas, +spent pulping liquor or any combination of those +fuels, +(B) if the system is rated to generate more than +three megawatts of electrical energy, meets the +following condition on an annual basis: +A ≥ (2 × B + C)/(D + E/3412) +where +A +is 11,000 BTU per kilowatt-hour, +B +is the energy content of fossil fuel other than +solution gas (expressed as the higher heating +value of the fuel) consumed by the system in +BTU, +C +is the energy content of the eligible waste fu- +el, producer gas and spent pulping liquor +(expressed as the higher heating value of the +fuel) consumed by the system in BTU, +D +is the gross electrical energy produced by the +system in kilowatt-hours, and +E +is the net useful energy in the form of heat +exported from the system to a thermal host +in BTU, and +(C) uses fuel of which no more than 25% of the +energy content (expressed as the higher heating +value of the fuel) is from fossil fuel, as deter- +mined on an annual basis, or +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Sections 43-44 + +Page 69 +(2) Clause (d)(i)(B) of Class 43.1 in Schedule II to +the Regulations is replaced by the following: +(B) it is not a building, part of a building (other +than a solar collector that is not a window and +that is integrated into a building), energy equip- +ment that backs up equipment described in sub- +clause (A)(I) or (II) nor equipment that dis- +tributes heated or cooled air or water in a build- +ing, +(3) Subparagraph (d)(iv) of Class 43.1 in Schedule +II to the Regulations is replaced by the following: +(iv) heat recovery equipment used by the taxpayer, +or by a lessee of the taxpayer, primarily for the pur- +pose of conserving energy, reducing the require- +ment to acquire energy or extracting heat for sale, +by extracting for reuse thermal waste that is gener- +ated directly in an industrial process (other than an +industrial process that generates or processes elec- +trical energy), including such equipment that con- +sists of heat exchange equipment, compressors +used to upgrade low pressure steam, vapour or gas, +waste heat boilers and other ancillary equipment +such as control panels, fans, instruments or pumps, +but not including property that is employed in re- +using the recovered heat (such as property that is +part of the internal heating or cooling system of a +building or electrical generating equipment) or is a +building, +(4) Subparagraph (d)(vii) of Class 43.1 in Sched- +ule II to the Regulations is replaced by the fol- +lowing: +(vii) equipment used by the taxpayer, or by a lessee +of the taxpayer, primarily for the purpose of gener- +ating electrical energy or heat energy, or both elec- +trical and heat energy, solely from geothermal ener- +gy, including such equipment that consists of pip- +ing (including above or below ground piping and +the cost of completing a well (including the well- +head and production string), or trenching, for the +purpose of installing that piping), pumps, heat ex- +changers, steam separators, electrical generating +equipment and ancillary equipment used to collect +the geothermal heat, but not including buildings, +distribution equipment, equipment described in +subclause (i)(A)(II), property otherwise included in +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +44 + +Page 70 +Class 10 and property that would be included in +Class 17 if that Class were read without reference to +its paragraph (a.1), +(5) Subparagraph (d)(ix) of Class 43.1 in Schedule +II to the Regulations is replaced by the following: +(ix) equipment that +(A) is used by the taxpayer, or by a lessee of the +taxpayer, for the sole purpose of generating heat +energy, not using any fuel other than eligible +waste fuel, fossil fuel, producer gas or a combi- +nation of those fuels, +(B) uses fuel of which no more than 25% of the +energy content (expressed as the higher heating +value of the fuel) is from fossil fuel, as deter- +mined on an annual basis, +(C) may include +(I) fuel handling equipment used to upgrade +the combustible portion of the fuel, +(II) control, feedwater and condensate sys- +tems, and +(III) other ancillary equipment, and +(D) does not include +(I) equipment used for the purpose of produc- +ing heat energy to operate electrical generat- +ing equipment, +(II) buildings or other structures, +(III) heat rejection equipment (such as con- +densers and cooling water systems), +(IV) fuel storage facilities, +(V) other fuel handling equipment, and +(VI) property otherwise included in Class 10 +or 17, +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +44 + +Page 71 +(6) Subparagraphs (d)(xi) and (xii) of Class 43.1 +in Schedule II to the Regulations are replaced by +the following: +(xi) equipment all or substantially all of the use of +which by the taxpayer, or by a lessee of the taxpay- +er, is to produce liquid biofuel, including storage, +materials handling and ash-handling equipment +and equipment used to remove non-combustibles +and contaminants from the fuels produced, but not +including +(A) equipment used to produce spent pulping +liquor, +(B) equipment used for the collection or trans- +portation of specified waste material or carbon +dioxide, +(C) equipment used for the transmission or dis- +tribution of liquid biofuel, +(D) property that would otherwise be included +in Class 17, +(E) automotive vehicles, and +(F) buildings or other structures, +(xii) fixed location fuel cell equipment used by the +taxpayer, or by a lessee of the taxpayer, that uses +hydrogen generated only from ancillary electrolysis +equipment (or, if the fuel cell is reversible, the fuel +cell itself) using electricity all or substantially all of +which is generated by using kinetic energy of flow- +ing water or wave or tidal energy or by geothermal, +photovoltaic, wind energy conversion, or hydro- +electric equipment, of the taxpayer or the lessee, +and equipment ancillary to the fuel cell equipment +other than buildings or other structures, transmis- +sion equipment, distribution equipment, auxiliary +electrical generating equipment and property oth- +erwise included in Class 10 or 17, +(7) Subparagraph (d)(xiv) of Class 43.1 in Sched- +ule II to the Regulations is replaced by the fol- +lowing: +(xiv) property that is used by the taxpayer, or by a +lessee of the taxpayer, primarily for the purpose of +generating electricity using kinetic energy of flow- +ing water or wave or tidal energy, including support +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +44 + +Page 72 +structures, control and conditioning equipment, +submerged cables and transmission equipment, but +not including buildings, distribution equipment, +auxiliary electricity generating equipment, property +otherwise included in Class 10 and property that +would be included in Class 17 if that class were read +without reference to its subparagraph (a.1)(i), +(8) Subparagraph (d)(xvi) of Class 43.1 in Sched- +ule II to the Regulations is replaced by the fol- +lowing: +(xvi) equipment used by the taxpayer, or by a +lessee of the taxpayer, primarily for the purpose of +generating producer gas (other than producer gas +that is to be converted into liquid fuels or chemi- +cals), including related piping (including fans and +compressors), air separation equipment, storage +equipment, equipment used for drying or shred- +ding feedstock, ash-handling equipment, equip- +ment used to upgrade the producer gas into +biomethane and equipment used to remove non- +combustibles and contaminants from the producer +gas, but not including, buildings or other struc- +tures, heat rejection equipment (such as con- +densers and cooling water systems), equipment +used to convert producer gas into liquid fuels or +chemicals, and property otherwise included in +Class 10 or 17, +(9) Subparagraph (d)(xvi) of Class 43.1 in Sched- +ule II to the Regulations is replaced by the fol- +lowing: +(xvi) equipment that +(A) is used by the taxpayer, or by a lessee of the +taxpayer, primarily for the purpose of generating +producer gas (other than producer gas that is to +be converted into liquid fuels or chemicals), +(B) uses feedstock of which no more than 25% of +the energy content (expressed as the higher +heating value of the feedstock) is from fossil fuel, +as determined on an annual basis, +(C) may include +(I) related piping (including fans and com- +pressors), +(II) air separation equipment, +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +44 + +Page 73 +(III) storage equipment, +(IV) equipment used for drying or shredding +feedstock, +(V) ash-handling equipment, +(VI) equipment used to upgrade the producer +gas into biomethane, and +(VII) equipment used to remove non-com- +bustibles and contaminants from the produc- +er gas, and +(D) does not include +(I) buildings or other structures, +(II) heat rejection equipment (such as con- +densers and cooling water systems), +(III) equipment used to convert producer gas +into liquid fuels or chemicals, and +(IV) property otherwise included in Class 10 +or 17, +(10) Paragraph (d) of Class 43.1 in Schedule II to +the Regulations is amended by striking out “or” +at the end of subparagraph (xvii) and by adding +the following after subparagraph (xviii): +(xix) a pumped hydroelectric energy storage instal- +lation all or substantially all of the use of which by +the taxpayer, or by a lessee of the taxpayer, is to +store electrical energy including reversing turbines, +transmission equipment, dams, reservoirs and re- +lated structures, and that meets the condition in ei- +ther subclause (d)(xviii)(B)(I) or (II) in this Class, +but not including +(A) property used solely for backup electrical en- +ergy, and +(B) buildings, +(xx) equipment all or substantially all of the use of +which by the taxpayer, or by a lessee of the taxpay- +er, is to produce solid biofuel, including storage, +materials handling and ash-handling equipment, +but not including +(A) equipment used to make wood chips, hog fu- +el or black liquor, +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +44 + +Page 74 +(B) property that would otherwise be included in +Class 17, +(C) automotive vehicles, and +(D) buildings and other structures, +(xxi) equipment used by the taxpayer, or by a +lessee of the taxpayer, to dispense hydrogen for use +in automotive equipment powered by hydrogen, in- +cluding vaporization, compression, cooling and +storage equipment, but not including +(A) equipment used for the production or trans- +mission of hydrogen, +(B) equipment used for the transmission or dis- +tribution of electricity, +(C) automotive vehicles, +(D) auxiliary electrical generating equipment, +and +(E) buildings and other structures, or +(xxii) equipment all or substantially all of the use +of which by the taxpayer, or by a lessee of the tax- +payer, is to produce hydrogen through electrolysis +of water, including electrolysers, rectifiers and oth- +er ancillary electrical equipment, water treatment +and conditioning equipment and equipment used +for hydrogen compression and storage, but not in- +cluding +(A) equipment used for the transmission or dis- +tribution of hydrogen, +(B) equipment used for the transmission or dis- +tribution of electricity, +(C) automotive vehicles, +(D) auxiliary electrical generating equipment, +and +(E) buildings and other structures, and +(11) Subsections (1), (5) and (9) apply in respect +of property of a taxpayer that becomes available +for use by the taxpayer after 2024. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +44 + +Page 75 +(12) Subsections (2) to (4), (6) to (8) and (10) ap- +ply to property acquired after April 18, 2021 that +has not been used or acquired for use before +April 19, 2021. +45 (1) Paragraph (a) of Class 43.2 in Schedule II +to the Regulations is replaced by the following: +(a) otherwise than because of paragraph (d) of that +Class; or +(2) Subparagraph (b)(i) of Class 43.2 in Schedule +II to the Regulations is repealed. +(3) Subsections (1) and (2) apply in respect of +property of a taxpayer that becomes available for +use by the taxpayer after 2024. +SOR/93-12 +Children’s Special Allowance +Regulations +46 (1) The definition applicant in section 2 of the +Children’s Special Allowance Regulations is re- +placed by the following: +applicant means a department, agency, institution or +Indigenous governing body referred to in subsection 3(1) +of the Act; (demandeur) +(2) Subsection (1) is deemed to have come into +force on January 1, 2020. +47 (1) The portion of section 7 of the Regulations +before paragraph (a) is replaced by the follow- +ing: +7 The information referred to in section 11 of the Act +may be furnished to the government of a province or to +an Indigenous governing body, under the terms of an +agreement between the Minister and that government or +Indigenous governing body, for the purpose of the ad- +ministration of a social, income assistance or health in- +surance program of that province or Indigenous govern- +ing body that is specified in the agreement, on condition +that +(2) Subsection (1) is deemed to have come into +force on January 1, 2020. +48 (1) Paragraphs 9(a) and (b) of the Regulations +are replaced by the following: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Sections 44-48 + +Page 76 +(a) the applicant, at the end of the month, provides for +the child’s care, maintenance, education, training and +advancement to a greater extent than any other de- +partment, agency, institution, Indigenous governing +body or any person; or +(b) the applicant is an entity referred to in any of +paragraphs 3(1)(a) to (c) of the Act that has applied in +respect of a child who +(i) was formerly in the care of foster parents or was +formerly maintained by an entity referred to in any +of paragraphs 3(1)(a) to (c) of the Act, and +(ii) has been placed in the permanent or temporary +custody of a guardian, tutor or other individual oc- +cupying a similar role for the month, under a de- +cree, order or judgment of a competent tribunal, or +under the laws of an Indigenous governing body, +who has received financial assistance from the ap- +plicant for the month in respect of the child’s main- +tenance. +(2) Subsection (1) is deemed to have come into +force on January 1, 2020. +Coordinating Amendments +Bill C-222 +49 If Bill C-222, introduced in the 1st session of +the 44th Parliament and entitled An Act to amend +the Income Tax Act (travel expenses deduction +for tradespersons), receives royal assent before +or on the same day as this Act receives royal as- +sent, then, on the day this Act receives royal as- +sent, that Act is deemed never to have come into +force and is repealed. +Bill C-241 +50 If Bill C-241, introduced in the 1st session of +the 44th Parliament and entitled An Act to amend +the Income Tax Act (deduction of travel expens- +es for tradespersons), receives royal assent be- +fore or on the same day as this Act receives royal +assent, then, on the day this Act receives royal as- +sent, that Act is deemed never to have come into +force and is repealed. +Bill S-216 +51 If Bill S-216, introduced in the 1st session of +the 44th Parliament and entitled An Act to amend +the Income Tax Act (use of resources of a regis- +tered charity), receives royal assent before or on +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Children’s Special Allowance Regulations +Sections 48-51 + +Page 77 +the same day as this Act receives royal assent, +then, on the day this Act receives royal assent, +that Act is deemed never to come into force and +is repealed. +PART 2 +R.S., c. E-15 +Amendments to the Excise Tax +Act (GST/HST Measures) +52 (1) The Excise Tax Act is amended by adding +the following after section 192: +New housing — assignment of agreement +192.1 If a taxable supply by way of sale of a single unit +residential complex (as defined in subsection 254(1)) or +of a residential condominium unit is made in Canada un- +der an agreement of purchase and sale (in this section re- +ferred to as the “purchase agreement”) entered into with +a builder of the single unit residential complex or of the +residential condominium unit and if another supply by +way of assignment of the purchase agreement is made by +a person (other than the builder) under another agree- +ment, then the following rules apply for the purposes of +this Part: +(a) the other supply is deemed to be a taxable supply, +by way of sale, of real property that is an interest in +the single unit residential complex or residential con- +dominium unit; and +(b) the consideration for the other supply is deemed +to be equal to the amount determined by the formula +A − B +where +A +is the consideration for the other supply as other- +wise determined for the purposes of this Part, and +B +is +(i) if the other agreement indicates in writing +that a part of the consideration for the other +supply is attributable to the reimbursement of +a deposit paid under the purchase agreement, +the part of the consideration for the other sup- +ply, as otherwise determined for the purposes +of this Part, that is solely attributable to the re- +imbursement of the deposit paid under the +purchase agreement, and +(ii) in any other case, zero. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 1 Amendments to the Income Tax Act and Other Legislation +Coordinating Amendments +Sections 51-52 + +Page 78 +(2) Subsection (1) applies in respect of any supply +by way of assignment of an agreement of pur- +chase and sale if the supply is made after +May 6, 2022. +53 (1) Clause (a)(ii)(C) of the definition facility +supply in subsection 259(1) of the Act is replaced +by the following: +(C) a nurse practitioner acting in the course of +the practise of a nurse practitioner, or +(2) Clause (a)(iii)(B) of the definition facility sup- +ply in subsection 259(1) of the Act is replaced by +the following: +(B) a physician or nurse practitioner be at, or be +on-call to attend at, the public hospital or quali- +fying facility at all times when the individual is at +the public hospital or qualifying facility, +(3) Subparagraph (a)(ii) of the definition home +medical supply in subsection 259(1) of the Act is +replaced by the following: +(ii) after a physician acting in the course of the +practise of medicine, a nurse practitioner acting in +the course of the practise of a nurse practitioner or +a prescribed person acting in prescribed circum- +stances has identified or confirmed that it is appro- +priate for the process to take place at the individu- +al’s place of residence or lodging (other than a pub- +lic hospital or a qualifying facility), +(4) Paragraph (b) of the definition home medical +supply in subsection 259(1) of the Act is replaced +by the following: +(b) in respect of which the property is made available, +or the service is rendered, to the individual at the indi- +vidual’s place of residence or lodging (other than a +public hospital or a qualifying facility), on the autho- +rization of a person who is responsible for coordinat- +ing the process and under circumstances in which it is +reasonable to expect that the person will carry out that +responsibility in consultation with, or with ongoing +reference to instructions for the process given by, a +physician acting in the course of the practise of +medicine, a nurse practitioner acting in the course of +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 2 Amendments to the Excise Tax Act (GST/HST Measures) +Sections 52-53 + +Page 79 +the practise of a nurse practitioner or a prescribed +person acting in prescribed circumstances, +(5) Subsections (1) to (4) apply for the purposes +of determining a rebate of a person under sec- +tion 259 of the Act for claim periods ending after +April 7, 2022, except that, in determining a rebate +of a person for the claim period that includes +April 7, 2022, the rebate is to be determined as if +those subsections did not apply in respect of +(a) an amount of tax that became payable by +the person on or before April 7, 2022; +(b) an amount that is deemed to have been +paid or collected by the person on or before +April 7, 2022; and +(c) an amount that is required to be added in +determining the person’s net tax +(i) as a result of a branch or division of the +person becoming a small supplier division +on or before April 7, 2022, or +(ii) as a result of the person ceasing to be a +registrant on or before April 7, 2022. +PART 3 +Amendments to the Excise Act, +2001, the Excise Act and Other +Related Texts +DIVISION 1 +Excise Act, 2001 and Other Related +Texts (Vaping Products) +2002, c. 22 +Excise Act, 2001 +54 (1) The definitions container, excise stamp and +manufacture in section 2 of the Excise Act, 2001 are +replaced by the following: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 2 Amendments to the Excise Tax Act (GST/HST Measures) +Sections 53-54 + +Page 80 +container, in respect of a tobacco product, a cannabis +product or a vaping product, means a wrapper, package, +carton, box, crate, bottle, vial or other container that con- +tains the tobacco product, cannabis product or vaping +product. (contenant) +excise stamp means a tobacco excise stamp, a cannabis +excise stamp or a vaping excise stamp. (timbre d’accise) +manufacture includes +(a) in respect of a tobacco product, any step in the +preparation or working up of raw leaf tobacco into the +tobacco product, including packing, stemming, recon- +stituting, converting or packaging the raw leaf tobacco +or tobacco product; and +(b) in respect of a vaping product, any step in the pro- +duction of the vaping product, including inserting a +vaping substance into a vaping device or packaging the +vaping product. (fabrication) +(2) Paragraph (a) of the definition packaged in +section 2 of the Act is replaced by the following: +(a) in respect of raw leaf tobacco, a tobacco product, a +cannabis product or a vaping product, packaged in a +prescribed package; or +(3) The definition stamped in section 2 of the Act +is amended by striking out “and” at the end of +paragraph (a), by adding “and” at the end of +paragraph (b) and by adding the following after +paragraph (b): +(c) in respect of a vaping product, that a vaping excise +stamp, and all prescribed information in a prescribed +format in respect of the vaping product, are stamped, +impressed, printed or marked on, indented into or af- +fixed to the vaping product or its container in the pre- +scribed manner to indicate that duty has been paid on +the vaping product. (estampillé) +(4) Paragraph (b) of the definition take for use in +section 2 of the Act is replaced by the following: +(b) in respect of a cannabis product or a vaping prod- +uct, to consume, analyze or destroy the cannabis prod- +uct or vaping product. (utilisation pour soi) +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +DIVISION 1 Excise Act, 2001 and Other Related Texts (Vaping Products) +Excise Act, 2001 +Section +54 + +Page 81 +(5) Section 2 of the Act is amended by adding the +following in alphabetical order: +additional vaping duty means a duty imposed under +section 158.58. (droit additionnel sur le vapotage) +immediate container, in respect of a vaping substance, +means the container that is in direct contact with the va- +ping substance. It does not include a vaping device. +(contenant immédiat) +specified +vaping +province means +a +prescribed +province. (province déterminée de vapotage) +vaping device means property (other than prescribed +property) that is +(a) a device that produces emissions in the form of an +aerosol and is intended to be brought to the mouth for +inhalation of the aerosol; +(b) a vaping pod or another part that may be used +with a device referred to in paragraph (a); or +(c) a prescribed property. (dispositif de vapotage) +vaping duty means a duty imposed under section +158.57. (droit sur le vapotage) +vaping excise stamp means a stamp that is issued by +the Minister under subsection 158.36(1) and that has not +been cancelled under section 158.4. (timbre d’accise de +vapotage) +vaping product means +(a) a vaping substance that is not contained within a +vaping device; or +(b) a vaping device that contains a vaping substance. +It does not include a cannabis product or a tobacco prod- +uct. (produit de vapotage) +vaping product drug means a vaping product (other +than a prescribed vaping product) that is +(a) a drug that has been assigned a drug identification +number under the Food and Drug Regulations; or +(b) a prescribed vaping product. (drogue de produit +de vapotage) +vaping product licensee means a person that holds a +vaping product licence issued under section 14. (titulaire +de licence de produits de vapotage) +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +DIVISION 1 Excise Act, 2001 and Other Related Texts (Vaping Products) +Excise Act, 2001 +Section +54 + +Page 82 +vaping product marking means prescribed information +that is required under this Act to be printed on, or affixed +to, a container of vaping products that are not required +under this Act to be stamped. (mention obligatoire +pour vapotage) +vaping substance means +(a) a substance or mixture of substances, whether or +not it contains nicotine, that is produced to be used, or +sold for use, with a vaping device to produce emissions +in the form of an aerosol; or +(b) a prescribed substance, material or thing. +It does not include a prescribed substance, material or +thing. (substance de vapotage) +55 (1) Subsection 5(1) of the Act is replaced by +the following: +Constructive possession +5 (1) For the purposes of section 25.2, subsections +25.3(1), 30(1), 32(1) and 32.1(1), section 61, subsections +70(1) and 88(1), section 158.04, subsections 158.05(1) and +158.11(1) and (2), section 158.37, subsections 158.38(1) +and 158.44(1) and (2), sections 230 and 231 and subsec- +tion 238.1(1), if one of two or more persons, with the +knowledge and consent of the rest of them, has anything +in the person’s possession, it is deemed to be in the cus- +tody and possession of each and all of them. +(2) The portion of subsection 5(2) of the Act be- +fore paragraph (a) is replaced by the following: +Definition of possession +(2) In this section and in section 25.2, subsections +25.3(1), 30(1), 32(1) and 32.1(1), section 61, subsections +70(1) and 88(1), section 158.04, subsections 158.05(1) and +158.11(1) and (2), section 158.37 and subsections +158.38(1), 158.44(1) and (2) and 238.1(1), possession +means not only having in one’s own personal possession +but also knowingly +56 Subsection 14(1) of the Act is amended by +striking out “or” at the end of paragraph (d), by +adding “or” at the end of paragraph (e) and by +adding the following after paragraph (e): +(f) a vaping product licence, authorizing the person to +manufacture vaping products. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +DIVISION 1 Excise Act, 2001 and Other Related Texts (Vaping Products) +Excise Act, 2001 +Sections 54-56 + +Page 83 +57 Subsection 19(1) of the Act is replaced by the +following: +Issuance of licence +19 (1) Subject to the regulations, on application, the +Minister may issue an excise warehouse licence to a per- +son that is not a retailer of alcohol authorizing the person +to possess in their excise warehouse manufactured tobac- +co, cigars or vaping products that are not stamped or +non-duty-paid packaged alcohol. +58 Paragraph 23(3)(b) of the Act is replaced by +the following: +(b) shall, in the case of a spirits licence, a tobacco li- +cence, a cannabis licence or a vaping product licence, +require security in a form satisfactory to the Minister +and in an amount determined in accordance with the +regulations; and +59 The Act is amended by adding the following +after section 158.34: +PART 4.2 +Vaping Products +Manufacturing and Stamping +Manufacturing without licence prohibited +158.35 (1) No person shall, other than in accordance +with a vaping product licence issued to the person, man- +ufacture vaping products. +Deemed manufacturer +(2) A person that, whether for consideration or other- +wise, provides or offers to provide in their place of busi- +ness equipment for use in that place by another person in +the manufacturing of a vaping product is deemed to be +manufacturing the vaping product and the other person +is deemed not to be manufacturing the vaping product. +Exception — manufacture for personal use +(3) An individual who is not a vaping product licensee +may manufacture vaping products for their personal use. +Exception — regulations +(4) Subsection (1) does not apply in respect of a pre- +scribed person that manufactures prescribed vaping +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +DIVISION 1 Excise Act, 2001 and Other Related Texts (Vaping Products) +Excise Act, 2001 +Sections 57-59 + +Page 84 +products in prescribed circumstances or for a prescribed +purpose. +Issuance of vaping excise stamps +158.36 (1) On application in the prescribed form and +manner, the Minister may issue, to a vaping product li- +censee or to a prescribed person that is importing vaping +products, stamps the purpose of which is to indicate that +vaping duty and, if applicable, additional vaping duty +have been paid on a vaping product. +Quantity of vaping excise stamps +(2) The Minister may limit the quantity of vaping excise +stamps that may be issued to a person under subsection +(1). +Security +(3) No person shall be issued a vaping excise stamp un- +less the person has provided security in a form satisfacto- +ry to the Minister and in an amount determined in accor- +dance with the regulations. +Supply of vaping excise stamps +(4) The Minister may authorize a producer of vaping ex- +cise stamps to supply, on the direction of the Minister, +vaping excise stamps to a person to which those stamps +are issued under subsection (1). +Design and construction +(5) The design and construction of vaping excise stamps +shall be subject to the approval of the Minister. +Counterfeit vaping excise stamps +158.37 No person shall produce, possess, sell or other- +wise supply, or offer to supply, without lawful justifica- +tion or excuse the proof of which lies on the person, any- +thing that is intended to resemble or pass for a vaping ex- +cise stamp. +Unlawful possession of vaping excise stamps +158.38 (1) No person shall possess a vaping excise +stamp that has not been affixed to the container of a vap- +ing product in the manner prescribed for the purposes of +the definition stamped in section 2 to indicate that duty +has been paid on the vaping product. +Exceptions — possession +(2) Subsection (1) does not apply to the possession of a +vaping excise stamp by +(a) the person that lawfully produced the vaping ex- +cise stamp; +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +DIVISION 1 Excise Act, 2001 and Other Related Texts (Vaping Products) +Excise Act, 2001 +Section +59 + +Page 85 +(b) the person to which the vaping excise stamp is is- +sued; +(c) a sufferance warehouse licensee that possesses the +vaping excise stamp in their sufferance warehouse on +behalf of the person described under paragraph (b); or +(d) a prescribed person. +Unlawful supply of vaping excise stamps +158.39 No person shall dispose of, sell or otherwise +supply, or offer to supply, a vaping excise stamp other- +wise than in accordance with this Act. +Cancellation of vaping excise stamps +158.4 The Minister may +(a) cancel a vaping excise stamp that has been issued; +and +(b) direct that it be returned or destroyed in a manner +specified by the Minister. +Unlawful packaging or stamping +158.41 No person shall package or stamp a vaping +product unless +(a) the person is a vaping product licensee; +(b) the person is the importer or owner of the vaping +product and the vaping product has been placed in a +sufferance warehouse for the purpose of being +stamped; or +(c) the person is a prescribed person. +Unlawful removal +158.42 (1) Except as permitted under section 158.52 or +if prescribed circumstances exist, no person shall remove +a vaping product from the premises of a vaping product +licensee unless it is packaged and +(a) if the vaping product is intended for the duty-paid +market, +(i) it is stamped to indicate that vaping duty has +been paid, and +(ii) if additional vaping duty in respect of a speci- +fied vaping province is imposed on the vaping prod- +uct, it is stamped to indicate that the additional va- +ping duty has been paid; or +(b) if the vaping product is not intended for the duty- +paid market, all vaping product markings that are +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +DIVISION 1 Excise Act, 2001 and Other Related Texts (Vaping Products) +Excise Act, 2001 +Section +59 + +Page 86 +required under this Act to be printed on, or affixed to, +its container are so printed or affixed. +Exceptions +(2) Subsection (1) does not apply to a vaping product li- +censee that removes from their premises a vaping prod- +uct if it is +(a) being removed for +(i) delivery to another vaping product licensee, +(ii) export, or +(iii) delivery to a person for analysis or destruction +in accordance with subparagraph 158.66(a)(iv); or +(b) a vaping product drug. +Removal by Minister +(3) Subsection (1) does not apply to the removal of a vap- +ing product for analysis or destruction by the Minister. +Prohibition — vaping products for sale +158.43 No person shall purchase or receive for sale a +vaping product +(a) from a manufacturer that the person knows, or +ought to know, is not a vaping product licensee; +(b) that is required under this Act to be packaged and +stamped unless it is packaged and stamped in accor- +dance with this Act; or +(c) that the person knows, or ought to know, is fraud- +ulently stamped. +Unlawful possession or sale of vaping products +158.44 (1) Except if prescribed circumstances exist, no +person, other than a vaping product licensee, shall dis- +pose of, sell, offer for sale, purchase or have in their pos- +session a vaping product unless +(a) it is packaged; and +(b) it is stamped to indicate that vaping duty has been +paid. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +DIVISION 1 Excise Act, 2001 and Other Related Texts (Vaping Products) +Excise Act, 2001 +Section +59 + +Page 87 +Unlawful possession or sale — specified vaping +province +(2) Except if prescribed circumstances exist, no person, +other than a vaping product licensee, shall dispose of, +sell, offer for sale, purchase or have in their possession a +vaping product in a specified vaping province unless it is +stamped to indicate that additional vaping duty in re- +spect of the specified vaping province has been paid. +Exception — possession of vaping products +(3) Subsections (1) and (2) do not apply to the possession +of vaping products +(a) in the case of imported vaping products, +(i) by an excise warehouse licensee in their excise +warehouse, +(ii) by a sufferance warehouse licensee in their suf- +ferance warehouse, or +(iii) by a customs bonded warehouse licensee in +their customs bonded warehouse; +(b) by a prescribed person that is transporting the va- +ping products under prescribed circumstances and +conditions; +(c) by a person that possesses the vaping products for +analysis or destruction in accordance with subpara- +graph 158.66(a)(iv); +(d) by an accredited representative for their personal +or official use; +(e) by an individual who has imported the vaping +products for their personal use in quantities not in ex- +cess of prescribed limits; +(f) by an individual who has manufactured the vaping +products in accordance with subsection 158.35(3); or +(g) if the vaping products are vaping product drugs. +Exception — sale or offer for sale +(4) Subsections (1) and (2) do not apply to the disposal, +sale, offering for sale or purchase of a vaping product if +(a) the vaping product is an imported vaping product, +an excise warehouse licensee or a customs bonded +warehouse licensee sells or offers to sell the vaping +product for export and the vaping product is exported +by the licensee in accordance with this Act; +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +DIVISION 1 Excise Act, 2001 and Other Related Texts (Vaping Products) +Excise Act, 2001 +Section +59 + +Page 88 +(b) the vaping product is an imported vaping product +and an excise warehouse licensee or a customs bonded +warehouse licensee sells or offers to sell the vaping +product to an accredited representative for their per- +sonal or official use; or +(c) the vaping product is a vaping product drug. +Sale or distribution by licensee +158.45 (1) Except if prescribed circumstances exist, no +vaping product licensee shall distribute a vaping product +or sell or offer for sale a vaping product to a person un- +less +(a) it is packaged; +(b) it is stamped to indicate that vaping duty has been +paid; and +(c) if additional vaping duty in respect of a specified +vaping province is imposed on the vaping product, it is +stamped to indicate that the additional vaping duty +has been paid. +Exceptions +(2) Subsection (1) does not apply to the distribution, sale +or offering for sale of a vaping product by a vaping prod- +uct licensee +(a) if the distribution, sale or offering for sale is to +(i) another vaping product licensee, or +(ii) an accredited representative for their personal +or official use; +(b) if the vaping product is exported by the vaping +product licensee in accordance with this Act; or +(c) if the vaping product is a vaping product drug. +Packaging and stamping of vaping products +158.46 A vaping product licensee that manufactures a +vaping product shall not enter the vaping product into +the duty-paid market unless +(a) the vaping product has been packaged by the li- +censee; +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +DIVISION 1 Excise Act, 2001 and Other Related Texts (Vaping Products) +Excise Act, 2001 +Section +59 + +Page 89 +(b) the package has printed on it prescribed informa- +tion; +(c) the vaping product is stamped at the time of pack- +aging to indicate that vaping duty has been paid; and +(d) if the vaping product is to be entered in the duty- +paid market of a specified vaping province, the vaping +product is stamped at the time of packaging to indi- +cate that additional vaping duty in respect of the spec- +ified vaping province has been paid. +Packaging and stamping of imported vaping products +158.47 (1) Except if prescribed circumstances exist, if a +vaping product is imported, it must, before it is released +under the Customs Act for entry into the duty-paid mar- +ket, +(a) be packaged in a package that has printed on it +prescribed information; +(b) be stamped to indicate that vaping duty has been +paid; and +(c) if the vaping product is to be entered in the duty- +paid market of a specified vaping province, be +stamped to indicate that additional vaping duty in re- +spect of the specified vaping province has been paid. +Exceptions for certain importations +(2) Subsection (1) does not apply to a vaping product +(a) that is imported by a vaping product licensee for +further manufacturing by the licensee; +(b) that a vaping product licensee is authorized to im- +port under subsection 158.53(2); or +(c) that is imported by an individual for their personal +use in quantities not in excess of prescribed limits. +Notice — absence of stamping +158.48 (1) The absence on a vaping product of stamp- +ing that indicates that vaping duty has been paid is notice +to all persons that vaping duty has not been paid on the +vaping product. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +DIVISION 1 Excise Act, 2001 and Other Related Texts (Vaping Products) +Excise Act, 2001 +Section +59 + +Page 90 +Notice — specified vaping province +(2) The absence on a vaping product of stamping that in- +dicates that additional vaping duty in respect of a speci- +fied vaping province has been paid is notice to all persons +that additional vaping duty in respect of the specified va- +ping province has not been paid on the vaping product. +Unstamped products to be warehoused +158.49 If vaping products manufactured in Canada are +not stamped by a vaping product licensee, the vaping +product licensee must immediately enter the vaping +products into the licensee’s excise warehouse. +Vaping product markings — warehousing +158.5 (1) Subject to subsection (4), no person shall en- +ter into an excise warehouse a container of vaping prod- +ucts unless the container has printed on it, or affixed to +it, vaping product markings and other prescribed infor- +mation. +Vaping product markings — imports +(2) Subject to subsections (3) and (4), no person shall de- +liver a container of imported vaping products that does +not have printed on it, or affixed to it, vaping product +markings and other prescribed information to +(a) an accredited representative; or +(b) a customs bonded warehouse. +Delivery of imported stamped vaping products +(3) A container of imported vaping products that were +manufactured outside Canada and are stamped may be +delivered to a customs bonded warehouse. +Exception in prescribed circumstances +(4) A container of vaping products does not require vap- +ing product markings to be printed on it, or affixed to it, +if prescribed circumstances exist. +Non-compliant imports +158.51 (1) If an imported vaping product intended for +the duty-paid market is not stamped to indicate that vap- +ing duty has been paid when it is reported under the Cus- +toms Act, it shall be placed in a sufferance warehouse for +the purpose of being so stamped. +Non-compliant imports — specified vaping province +(2) If an imported vaping product intended for the duty- +paid market of a specified vaping province is not stamped +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +DIVISION 1 Excise Act, 2001 and Other Related Texts (Vaping Products) +Excise Act, 2001 +Section +59 + +Page 91 +to indicate that additional vaping duty in respect of the +province has been paid when it is reported under the +Customs Act, it shall be placed in a sufferance warehouse +for the purpose of being so stamped. +Exception +(3) Subsections (1) and (2) do not apply in prescribed +circumstances. +Vaping products — waste removal +158.52 (1) No person shall remove a vaping product +that is waste from the premises of a vaping product li- +censee other than the licensee or a person authorized by +the Minister. +Removal requirements +(2) If a vaping product that is waste is removed from the +premises of a vaping product licensee, it shall be dealt +with in the manner authorized by the Minister. +Re-working or destruction of vaping products +158.53 (1) A vaping product licensee may re-work or +destroy a vaping product in the manner authorized by the +Minister. +Importation for re-working or destruction +(2) The Minister may authorize a vaping product licensee +to import vaping products manufactured in Canada by +the licensee for re-working or destruction by the licensee +in accordance with subsection (1). +Responsibility for Vaping Products +Responsibility — vaping products manufactured in +Canada +158.54 (1) Subject to section 158.55, a person is respon- +sible for a vaping product manufactured in Canada at any +time if +(a) the person is +(i) the vaping product licensee that owns the vaping +product at that time, or +(ii) if the vaping product is not owned at that time +by a vaping product licensee, the vaping product li- +censee that last owned it; or +(b) the person is a prescribed person. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +DIVISION 1 Excise Act, 2001 and Other Related Texts (Vaping Products) +Excise Act, 2001 +Section +59 + +Page 92 +Responsibility — imported vaping products +(2) Subject to sections 158.55 and 158.56, a person is re- +sponsible for an imported vaping product at any time if +the person +(a) imported the vaping product; or +(b) is a prescribed person. +Person not responsible +158.55 A person that is responsible for a vaping product +ceases to be responsible for it if +(a) it is packaged and stamped and the duty on it is +paid; +(b) it is consumed or used in the manufacturing of a +vaping product that is +(i) a vaping product drug, or +(ii) a prescribed vaping product; +(c) it is taken for use and the duty on it is paid; +(d) it is taken for use in accordance with any of sub- +paragraphs 158.66(a)(i) to (iv); +(e) it is exported; +(f) it is delivered to an accredited representative for +their personal or official use; +(g) it is lost in prescribed circumstances and the per- +son fulfils any prescribed conditions; or +(h) prescribed circumstances exist. +Imports for personal use +158.56 An individual that imports vaping products for +their personal use in quantities not in excess of pre- +scribed limits is not responsible for those vaping prod- +ucts. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +DIVISION 1 Excise Act, 2001 and Other Related Texts (Vaping Products) +Excise Act, 2001 +Section +59 + +Page 93 +Imposition and Payment of Duty on +Vaping Products +Imposition +158.57 Duty is imposed on vaping products manufac- +tured in Canada or imported in the amount determined +under Schedule 8 and is payable +(a) in the case of vaping products manufactured in +Canada, by the vaping product licensee that packaged +the vaping products and at the time they are pack- +aged; and +(b) in the case of imported vaping products, by the +importer, owner or other person that is liable under +the Customs Act to pay duty levied under section 20 of +the Customs Tariff or that would be liable to pay that +duty on the vaping products if they were subject to +that duty. +Imposition — additional vaping duty +158.58 In addition to the duty imposed under section +158.57, a duty in respect of a specified vaping province is +imposed on vaping products manufactured in Canada, or +imported, in prescribed circumstances in the amount de- +termined in a prescribed manner and is payable +(a) in the case of vaping products manufactured in +Canada, by the vaping product licensee that packaged +the vaping products and at the time they are pack- +aged; and +(b) in the case of imported vaping products, by the +importer, owner or other person that is liable under +the Customs Act to pay duty levied under section 20 of +the Customs Tariff or that would be liable to pay that +duty on the vaping products if they were subject to +that duty. +Application of Customs Act +158.59 The duties imposed under sections 158.57 and +158.58 on imported vaping products shall be paid and +collected under the Customs Act, and interest and penal- +ties shall be imposed, calculated, paid and collected un- +der that Act, as if the duties were a duty levied under sec- +tion 20 of the Customs Tariff, and, for those purposes, +the Customs Act applies with any modifications that the +circumstances require. +Duty on vaping products taken for use +158.6 (1) If a particular person is responsible for vaping +products at a particular time when the vaping products +are taken for use, the following rules apply: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +DIVISION 1 Excise Act, 2001 and Other Related Texts (Vaping Products) +Excise Act, 2001 +Section +59 + +Page 94 +(a) if the vaping products are packaged, they are re- +lieved of the duty imposed under section 158.57; and +(b) duty is imposed on the vaping products in the +amount determined in respect of the vaping products +under Schedule 8. +Specified vaping province — taken for use +(2) If a particular person is responsible for vaping prod- +ucts at a particular time when the vaping products are +taken for use, a duty in respect of a specified vaping +province is imposed on the vaping products in prescribed +circumstances in the amount determined in prescribed +manner. That duty is in addition to the duty imposed un- +der subsection (1). +Duty payable +(3) The duty imposed under subsection (1) or (2) is +payable at the particular time, and by the particular per- +son, referred to in that subsection. +Duty on unaccounted vaping products +158.61 (1) If a particular person that is responsible at a +particular time for vaping products cannot account for +the vaping products as being, at the particular time, in +the possession of a vaping product licensee or in the pos- +session of another person in accordance with subsection +158.44(3), the following rules apply: +(a) if the vaping products are packaged, they are re- +lieved of the duty imposed under section 158.57; and +(b) duty is imposed on the vaping products in the +amount determined in respect of the vaping products +under Schedule 8. +Specified vaping province — unaccounted vaping +products +(2) If a particular person that is responsible at a particu- +lar time for vaping products cannot account for the vap- +ing products as being, at the particular time, in the pos- +session of a vaping product licensee or in the possession +of another person in accordance with subsection +158.44(3), a duty in respect of a specified vaping province +is imposed on the vaping products in prescribed circum- +stances in the amount determined in prescribed manner. +That duty is in addition to the duty imposed under sub- +section (1). +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +DIVISION 1 Excise Act, 2001 and Other Related Texts (Vaping Products) +Excise Act, 2001 +Section +59 + +Page 95 +Duty payable +(3) The duty imposed under subsection (1) or (2) is +payable at the particular time, and by the particular per- +son, referred to in that subsection. +Exception +(4) Subsection (1) does not apply in circumstances in +which the particular person referred to in that subsection +is convicted of an offence under section 218.2. +Duty relieved — unstamped vaping products +158.62 (1) The duties imposed under sections 158.57 +and 158.58 are relieved on a vaping product that is not +stamped. +Vaping products imported for personal use +(2) Subsection (1) does not apply to the importation of +vaping products by an individual for their personal use to +the extent that the quantity of the products imported ex- +ceeds the quantity permitted under Chapter 98 of the List +of Tariff Provisions set out in the schedule to the Cus- +toms Tariff to be imported without the payment of du- +ties, as defined in Note 4 to that Chapter. +Duty relieved — importation by an individual +158.63 (1) The duties imposed under sections 158.57 +and 158.58 are relieved on vaping products imported by +an individual for their personal use if they were manufac- +tured in Canada and are stamped. +Duty relieved — reimportation +(2) The duties imposed under sections 158.57 and 158.58 +are relieved on vaping products imported by an individu- +al for their personal use if they were manufactured out- +side Canada, were previously imported into Canada and +are stamped. +Duty relieved — importation for destruction +158.64 The duties imposed under paragraphs 158.57(b) +and 158.58(b) are relieved on a stamped vaping product +that was manufactured in Canada by a vaping product li- +censee and that is imported for re-working or destruction +in accordance with section 158.53. +Duty relieved — prescribed circumstances +158.65 The duties imposed under section 158.57 or +158.58 are relieved on a vaping product in prescribed cir- +cumstances. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +DIVISION 1 Excise Act, 2001 and Other Related Texts (Vaping Products) +Excise Act, 2001 +Section +59 + +Page 96 +Duty not payable +158.66 Duty is not payable on a vaping product +(a) that is +(i) taken for analysis, or destroyed, by the Minister, +(ii) taken for analysis by a vaping product licensee +in a manner approved by the Minister, +(iii) destroyed by a vaping product licensee in a +manner approved by the Minister, +(iv) delivered by a vaping product licensee to an- +other person for analysis or destruction by that per- +son in a manner approved by the Minister, +(v) a vaping product drug, or +(vi) a prescribed vaping product; or +(b) in prescribed circumstances. +Excise Warehouses +Restriction — entering vaping products +158.67 No person shall enter into an excise warehouse +(a) a vaping product that is stamped; or +(b) any other vaping product except in accordance +with this Act. +Prohibition on removal +158.68 (1) Except if prescribed circumstances exist, no +person shall remove from an excise warehouse vaping +products manufactured in Canada. +Removal of Canadian manufactured vaping products +(2) Subject to the regulations, a vaping product manufac- +tured in Canada may be removed from the excise ware- +house of the vaping product licensee that manufactured +it only if it is +(a) for export by the licensee in accordance with this +Act; or +(b) for delivery to an accredited representative for +their official or personal use. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +DIVISION 1 Excise Act, 2001 and Other Related Texts (Vaping Products) +Excise Act, 2001 +Section +59 + +Page 97 +Removal from warehouse for re-working or +destruction +(3) Subject to the regulations, vaping products manufac- +tured in Canada may be removed from the excise ware- +house of the vaping product licensee that manufactured +them if they are removed for re-working or destruction +by the licensee in accordance with section 158.53. +Removal of imported vaping products +158.69 (1) Except if prescribed circumstances exist, no +person shall remove imported vaping products from an +excise warehouse. +Exception +(2) Subject to the regulations, imported vaping products +may be removed from an excise warehouse +(a) for delivery to another excise warehouse; +(b) for delivery to an accredited representative for +their official or personal use; or +(c) for export by the excise warehouse licensee in ac- +cordance with this Act. +60 (1) The portion of subsection 159(1) of the Act +before paragraph (a) is replaced by the follow- +ing: +Determination of fiscal months +159 (1) The fiscal months of a person other than a +cannabis licensee or a vaping product licensee shall be +determined in accordance with the following rules: +(2) Subsection 159(1.01) of the Act is replaced by +the following: +Fiscal months — cannabis or vaping product licensee +(1.01) For the purposes of this Act, the fiscal months of a +cannabis licensee or a vaping product licensee are calen- +dar months. +61 Section 180 of the Act is replaced by the fol- +lowing: +No refund — exportation +180 Subject to this Act, the duty paid on any tobacco +product, cannabis product, vaping product or alcohol en- +tered into the duty-paid market shall not be refunded on +the exportation of the tobacco product, cannabis product, +vaping product or alcohol. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +DIVISION 1 Excise Act, 2001 and Other Related Texts (Vaping Products) +Excise Act, 2001 +Sections 59-61 + +Page 98 +62 The Act is amended by adding the following +after section 187.1: +Refund of duty — destroyed vaping product +187.2 The Minister may refund to a vaping product li- +censee the duty paid on a vaping product that is re- +worked or destroyed by the licensee in accordance with +section 158.53 if the licensee applies for the refund within +two years after the vaping product is re-worked or de- +stroyed. +63 (1) Paragraph 206(1)(d) of the Act is replaced +by the following: +(d) every person that transports a tobacco product, +cannabis product or vaping product that is not +stamped or non-duty-paid packaged alcohol. +(2) Section 206 of the Act is amended by adding +the following after subsection (2.01): +Keeping records — vaping product licensee +(2.02) Every vaping product licensee shall keep records +that will enable the determination of the amount of vap- +ing product manufactured, received, used, packaged, re- +worked, sold or disposed of by the licensee. +64 (1) The portion of section 214 of the Act before +paragraph (a) is replaced by the following: +Unlawful production, sale, etc. +214 Every person that contravenes any of sections 25, +25.2 to 25.4, 27 and 29, subsection 32.1(1) and sections 60, +62, 158.02, 158.04 to 158.06, 158.08, 158.1 and 158.37 to +158.39 is guilty of an offence and liable +(2) The portion of section 214 of the Act before +paragraph (a), as enacted by subsection (1), is re- +placed by the following: +Unlawful production, sale, etc. +214 Every person that contravenes any of sections 25, +25.2 to 25.4, 27 and 29, subsection 32.1(1) and sections 60, +62, 158.02, 158.04 to 158.06, 158.08, 158.1, 158.35, 158.37 to +158.39, 158.41 and 158.43 is guilty of an offence and liable +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +DIVISION 1 Excise Act, 2001 and Other Related Texts (Vaping Products) +Excise Act, 2001 +Sections 61-64 + +Page 99 +65 The Act is amended by adding the following +after section 218.1: +Punishment — sections 158.44 and 158.45 +218.2 (1) Every person that contravenes section 158.44 +or 158.45 is guilty of an offence and liable +(a) on conviction on indictment, to a fine of not less +than the amount determined under subsection (2) and +not more than the amount determined under subsec- +tion (3) or to imprisonment for a term of not more +than five years, or to both; or +(b) on summary conviction, to a fine of not less than +the amount determined under subsection (2) and not +more than the lesser of $500,000 and the amount de- +termined under subsection (3) or to imprisonment for +a term of not more than 18 months, or to both. +Minimum amount +(2) The amount determined under this subsection for an +offence under subsection (1) is the greater of +(a) the amount determined by the formula +(A + B) × 200% +where +A +is the amount determined under Schedule 8 in re- +spect of the vaping products to which the offence +relates, using the rates of duty applicable at the +time the offence was committed, and +B +is +(i) if the offence occurred in a specified vaping +province, the amount determined for A, and +(ii) in any other case, 0, and +(b) $1,000 in the case of an indictable offence +and $500 in the case of an offence punishable on sum- +mary conviction. +Maximum amount +(3) The amount determined under this subsection for an +offence under subsection (1) is the greater of +(a) the amount determined by the formula +(A + B) × 300% +where +A +is the amount determined under Schedule 8 in re- +spect of the vaping products to which the offence +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +DIVISION 1 Excise Act, 2001 and Other Related Texts (Vaping Products) +Excise Act, 2001 +Section +65 + +Page 100 +relates, using the rates of duty applicable at the +time the offence was committed, and +B +is +(i) if the offence occurred in a specified vaping +province, the amount determined for A, and +(ii) in any other case, 0, and +(b) $2,000 in the case of an indictable offence +and $1,000 in the case of an offence punishable on +summary conviction. +66 Paragraph 230(1)(a) of the Act is replaced by +the following: +(a) the commission of an offence under section 214 or +subsection 216(1), 218(1), 218.1(1), 218.2(1) or 231(1); +or +67 Paragraph 231(1)(a) of the Act is replaced by +the following: +(a) the commission of an offence under section 214 or +subsection 216(1), 218(1), 218.1(1) or 218.2(1); or +68 Subsection 232(1) of the Act is replaced by the +following: +Part XII.2 of Criminal Code applicable +232 (1) Sections 462.3 and 462.32 to 462.5 of the Crimi- +nal Code apply, with any modifications that the circum- +stances require, in respect of proceedings for an offence +under section 214, subsection 216(1), 218(1), 218.1(1) or +218.2(1) or section 230 or 231. +69 The Act is amended by adding the following +after section 233.1: +Contravention of section 158.46 or 158.49 +233.2 Every vaping product licensee that contravenes +section 158.46 or 158.49 is liable to a penalty equal to the +amount determined by the formula +(A + B) × 200% +where +A +is the amount determined under Schedule 8 in re- +spect of the vaping products to which the contraven- +tion relates, using the rates of duty applicable at the +time the contravention occurred; and +B +is +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +DIVISION 1 Excise Act, 2001 and Other Related Texts (Vaping Products) +Excise Act, 2001 +Sections 65-69 + +Page 101 +(a) if the contravention occurred in a specified va- +ping province, the amount determined for A, and +(b) in any other case, 0. +70 (1) Subsection 234(1) of the Act is replaced by +the following: +Contravention of certain sections +234 (1) Every person that contravenes section 38, 40, 49, +61, 62.1, 99, 149, 151, 158.15, 158.5 or 158.67 is liable to a +penalty of not more than $25,000. +(2) Subsection 234(1) of the Act, as enacted by +subsection (1), is replaced by the following: +Contravention of certain sections +234 (1) Every person that contravenes section 38, 40, 49, +61, 62.1, 99, 149, 151, 158.15, 158.5, 158.52 or 158.67 is li- +able to a penalty of not more than $25,000. +(3) Section 234 of the Act is amended by adding +the following after subsection (3): +Failure to comply +(4) Every person that fails to return or destroy stamps as +directed by the Minister under paragraph 158.4(b) is li- +able to a penalty of not more than $25,000. +(4) Subsection 234(4) of the Act, as enacted by +subsection (3), is replaced by the following: +Failure to comply +(4) Every person that fails to return or destroy stamps as +directed by the Minister under paragraph 158.4(b), or +that fails to re-work or destroy a vaping product in the +manner authorized by the Minister under section 158.53, +is liable to a penalty of not more than $25,000. +71 The Act is amended by adding the following +after section 234.1: +Contravention — sections 158.35 and 158.43 to 158.45 +234.2 Every person that contravenes section 158.35, that +receives for sale vaping products in contravention of sec- +tion 158.43 or that sells or offers to sell vaping products +in contravention of section 158.44 or 158.45 is liable to a +penalty equal to the amount determined by the formula +(A + B) × 200% +where +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +DIVISION 1 Excise Act, 2001 and Other Related Texts (Vaping Products) +Excise Act, 2001 +Sections 69-71 + +Page 102 +A +is the amount determined under Schedule 8 in re- +spect of the vaping products to which the contraven- +tion relates, using the rates of duty applicable at the +time the contravention occurred; and +B +is +(a) if the contravention occurred in a specified va- +ping province, the amount determined for A, and +(b) in any other case, 0. +72 Subsection 237(6) of the Act is replaced by the +following: +Diversion of unstamped vaping products +(5.1) Every vaping product licensee is liable to a penalty +in respect of a vaping product manufactured in Canada +that is removed from the excise warehouse of the licensee +for a purpose described in subsection 158.68(2) if the +product is not delivered or exported, as the case may be, +for that purpose. +Diversion of imported vaping products +(5.2) Every excise warehouse licensee is liable to a penal- +ty in respect of an imported vaping product that is re- +moved from the excise warehouse of the licensee for a +purpose described in subsection 158.69(2) if the product +is not delivered or exported, as the case may be, for that +purpose. +Amount of penalty for diversion of vaping products +(5.3) The amount of a penalty for each vaping product +that is removed from an excise warehouse for a purpose +referred to in subsection (5.1) or (5.2) and that is not de- +livered or exported, as the case may be, for that purpose +is equal to the amount determined by the formula +(A + B) × 200% +where +A +is the amount determined under Schedule 8 in re- +spect of the vaping product, using the rates of duty +applicable at the time the vaping product is removed +from the excise warehouse; and +B +is +(a) if at least one province is prescribed for the +purposes of the definition specified vaping +province in section 2 at the time the vaping prod- +uct is removed from the excise warehouse, the +amount determined for A, and +(b) in any other case, 0. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +DIVISION 1 Excise Act, 2001 and Other Related Texts (Vaping Products) +Excise Act, 2001 +Sections 71-72 + +Page 103 +Exception +(6) A licensee that would otherwise be liable to a penalty +under this section is not liable if the licensee proves to +the satisfaction of the Minister that the alcohol, tobacco +product or vaping product that was removed from their +excise warehouse or special excise warehouse was re- +turned to that warehouse. +73 The Act is amended by adding the following +after section 238: +Penalty in respect of unaccounted vaping products +238.01 (1) Every excise warehouse licensee is liable to a +penalty in respect of a vaping product entered into their +excise warehouse if the licensee cannot account for the +vaping product +(a) as being in the warehouse; +(b) as having been removed from the warehouse in ac- +cordance with this Act; or +(c) as having been destroyed by fire while kept in the +warehouse. +Amount of penalty +(2) The amount of a penalty for each vaping product that +cannot be accounted for is equal to the amount deter- +mined by the formula +(A + B) × 200% +where +A +is the amount determined under Schedule 8 in re- +spect of the vaping product, using the rates of duty +applicable at the time the vaping product is entered +into the excise warehouse; and +B +is +(a) if at least one province is prescribed for the +purposes of the definition specified vaping +province in section 2 at the time the vaping prod- +uct is entered into the excise warehouse, the +amount determined for A, and +(b) in any other case, 0. +74 (1) Paragraph 238.1(1)(a) of the Act is replaced +by the following: +(a) the person can demonstrate that the stamps were +affixed to tobacco products, cannabis products, vaping +products or their containers in the manner prescribed +for the purposes of the definition stamped in section 2 +and that duty, other than special duty, has been paid +on the tobacco products, cannabis products or vaping +products; or +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +DIVISION 1 Excise Act, 2001 and Other Related Texts (Vaping Products) +Excise Act, 2001 +Sections 72-74 + +Page 104 +(2) Subsection 238.1(2) of the Act is amended by +striking out “or” at the end of paragraph (a), by +adding “or” at the end of paragraph (b) and by +adding the following after paragraph (b): +(c) in the case of a vaping excise stamp +(i) if the stamp is in respect of a specified vaping +province, $10.00, and +(ii) in any other case, $5.00. +75 The portion of section 239 of the Act before +paragraph (a) is replaced by the following: +Other diversions +239 Unless section 237 applies, every person is liable to +a penalty equal to 200% of the duty that was imposed on +packaged alcohol, a tobacco product, a cannabis product +or a vaping product if +76 Section 264 of the Act is replaced by the fol- +lowing: +Certain things not to be returned +264 Despite any other provision of this Act, any alcohol, +specially denatured alcohol, restricted formulation, raw +leaf tobacco, excise stamp, tobacco product, cannabis +product or vaping product that is seized under section +260 must not be returned to the person from whom it was +seized or any other person unless it was seized in error. +77 Subsection 266(2) of the Act is amended by +striking out “and” at the end of paragraph (d), by +adding “and” at the end of paragraph (e) and by +adding the following after paragraph (e): +(f) a seized vaping product only to a vaping product li- +censee. +78 (1) Paragraph 304(1)(c.1) of the Act is replaced +by the following: +(c.1) respecting the types of security that are accept- +able for the purposes of subsection 158.03(3) or +158.36(3), and the manner by which the amount of the +security is to be determined; +(2) Paragraph 304(1)(f) of the Act is replaced by +the following: +(f) respecting the information to be provided on to- +bacco products, packaged alcohol, cannabis products +and vaping products and on containers of tobacco +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +DIVISION 1 Excise Act, 2001 and Other Related Texts (Vaping Products) +Excise Act, 2001 +Sections 74-78 + +Page 105 +products, packaged alcohol, cannabis products and va- +ping products; +(3) Paragraph 304(1)(i) of the Act is replaced by +the following: +(i) respecting the entry and removal of tobacco prod- +ucts, alcohol or vaping products from an excise ware- +house or a special excise warehouse; +(4) Paragraph 304(1)(n) of the Act is replaced by +the following: +(n) respecting the sale under section 266 of alcohol, +tobacco products, raw leaf tobacco, specially dena- +tured alcohol, restricted formulations, cannabis prod- +ucts or vaping products seized under section 260; +79 The Act is amended by adding the following +after section 304.2: +Definition of coordinated vaping duty system +304.3 (1) In this section, coordinated vaping duty +system means the system providing for the payment, +collection and remittance of duty imposed under any of +section 158.58 and subsections 158.6(2) and 158.61(2) and +any provisions relating to duty imposed under those pro- +visions or to refunds in respect of any such duty. +Coordinated vaping duty system regulations — +transition +(2) The Governor in Council may make regulations, in +relation to the joining of a province to the coordinated +vaping duty system, +(a) prescribing transitional measures, including +(i) a tax on the inventory of vaping products held +by a vaping product licensee or any other person, +and +(ii) a duty or tax on vaping products that are deliv- +ered prior to the province joining that system; and +(b) generally to effect the implementation of that sys- +tem in relation to the province. +Coordinated vaping duty system regulations — rate +variation +(3) The Governor in Council may make regulations +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +DIVISION 1 Excise Act, 2001 and Other Related Texts (Vaping Products) +Excise Act, 2001 +Sections 78-79 + +Page 106 +(a) prescribing rules in respect of whether, how and +when a change in the rate of duty for a specified vap- +ing province applies (in this section any such change +in the rate of duty is referred to as a “rate variation”), +including rules deeming, in specified circumstances +and for specified purposes, the status of anything to be +different than what it would otherwise be, including +when duty is imposed or payable and when duty is re- +quired to be reported and accounted for; +(b) if a manner of determining an amount of duty is to +be prescribed in relation to the coordinated vaping du- +ty system, +(i) specifying the circumstances or conditions un- +der which a change in the manner applies, and +(ii) prescribing transitional measures in respect of +a change in the manner, including +(A) a tax on the inventory of vaping products +held by a vaping product licensee or any other +person, and +(B) a duty or tax on vaping products that are de- +livered prior to the change; and +(c) prescribing amounts and rates to be used to deter- +mine any refund that relates to, or is affected by, the +coordinated vaping duty system, excluding amounts +that would otherwise be included in determining any +such refund, and specifying circumstances under +which any such refund shall not be paid or made. +Coordinated vaping duty system regulations — +general +(4) For the purpose of facilitating the implementation, +application, administration and enforcement of the coor- +dinated vaping duty system or a rate variation or the +joining of a province to the coordinated vaping duty sys- +tem, the Governor in Council may make regulations +(a) prescribing rules in respect of whether, how and +when that system applies and rules in respect of other +aspects relating to the application of that system in re- +lation to a specified vaping province, including rules +deeming, in specified circumstances and for specified +purposes, the status of anything to be different than +what it would otherwise be, including when duty is +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +DIVISION 1 Excise Act, 2001 and Other Related Texts (Vaping Products) +Excise Act, 2001 +Section +79 + +Page 107 +imposed or payable and when duty is required to be +reported and accounted for; +(b) prescribing rules related to the movement of vap- +ing products between provinces, including a duty, tax +or refund in respect of such movement; +(c) providing for refunds relating to the application of +that system in relation to a specified vaping province; +(d) adapting any provision of this Act or of the regula- +tions made under this Act to the coordinated vaping +duty system or modifying any provision of this Act or +those regulations to adapt it to the coordinated vaping +duty system; +(e) defining, for the purposes of this Act or the regula- +tions made under this Act, or any provision of this Act +or those regulations, in its application to the coordi- +nated vaping duty system, words or expressions used +in this Act or those regulations including words or ex- +pressions defined in a provision of this Act or those +regulations; +(f) providing that a provision of this Act or of the reg- +ulations made under this Act, or a part of such a provi- +sion, does not apply to the coordinated vaping duty +system; +(g) prescribing +compliance +measures, +including +penalties and anti-avoidance rules; and +(h) generally in respect of the application of that sys- +tem in relation to a province. +Conflict +(5) If a regulation made under this Act in respect of the +coordinated vaping duty system states that it applies de- +spite any provision of this Act, in the event of a conflict +between the regulation and this Act, the regulation pre- +vails to the extent of the conflict. +80 The Act is amended by adding, after Schedule +7, the Schedule 8 set out in Schedule 1 to this Act. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +DIVISION 1 Excise Act, 2001 and Other Related Texts (Vaping Products) +Excise Act, 2001 +Sections 79-80 + +Page 108 +Related Amendments +R.S., c. C-46 +Criminal Code +81 (1) Subparagraph (g)(i) of the definition of- +fence in section 183 of the Criminal Code is re- +placed by the following: +(i) section 214 (unlawful production, sale, etc., of +tobacco, alcohol, cannabis or vaping products), +(2) Paragraph (g) of the definition offence in sec- +tion 183 of the Act is amended by adding the fol- +lowing after subparagraph (iii.1): +(iii.2) section 218.2 (unlawful possession, sale, etc., +of unstamped vaping products), +R.S., c. E-15 +Excise Tax Act +82 The definition excisable goods in subsection +123(1) of the Excise Tax Act is replaced by the fol- +lowing: +excisable goods means beer or malt liquor (within the +meaning assigned by section 4 of the Excise Act) and +spirits, wine, tobacco products, cannabis products and +vaping products (within the meaning assigned by section +2 of the Excise Act, 2001); (produit soumis à l’accise) +R.S., c. F-8; 1995, c. 17, s. 45(1) +Federal-Provincial Fiscal +Arrangements Act +83 Subsection 2(1) of the Federal-Provincial Fis- +cal Arrangements Act is amended by adding the +following in alphabetical order: +coordinated vaping product taxation agreement +means an agreement or arrangement entered into by the +Minister on behalf of the Government of Canada under +Part III.3, including any amendments or variations to the +agreement or arrangement made in accordance with that +Part; (accord de coordination de la taxation des pro- +duits de vapotage) +84 The Act is amended by adding the following +after section 8.82: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +Related Amendments +Sections 81-84 + +Page 109 +PART III.3 +Coordinated Vaping Product +Taxation Agreements +Coordinated Vaping Product Taxation Agreement +8.9 (1) The Minister, with the approval of the Governor +in Council, may on behalf of the Government of Canada +enter into an agreement or arrangement with the govern- +ment of a province respecting the taxation of vaping +products and, without restricting the generality of the +foregoing, respecting +(a) the collection, administration and enforcement of +taxes on vaping products in respect of the province +under a single Act of Parliament; +(b) the provision to the Government of Canada by the +government of the province, or to the government of +the province by the Government of Canada, of +(i) information acquired in the administration and +enforcement of Acts imposing taxes on vaping +products and Acts providing for rebates, refunds or +reimbursements of taxes on vaping products, paid +or payable, or of amounts paid or payable as or on +account of the taxation of vaping products, and +(ii) other information related to the regulation of +vaping and the distribution of vaping products rele- +vant to the system of taxation of vaping products +under a single Act of Parliament; +(c) the accounting for taxes collected in accordance +with the agreement; +(d) the implementation of and transition to the system +of taxation of vaping products contemplated under the +agreement; +(e) payments, and the eligibility for payments, by the +Government of Canada to the government of the +province in respect of the revenues from the system of +taxation contemplated under the agreement and to +which the province is entitled under the agreement, +the time when such payments will be made, and the +remittance by the government of the province to the +Government of Canada of any overpayments by the +Government of Canada or the right of the Government +of Canada to set off any overpayments against other +amounts payable by the Government of Canada to the +government of the province, whether under the +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +Related Amendments +Federal-Provincial Fiscal Arrangements Act +Section +84 + +Page 110 +agreement or any other agreement or arrangement or +any Act of Parliament; +(f) the payment by the Government of Canada and its +agents and subservient bodies, and by the government +of the province and its agents and subservient bodies, +of the taxes on vaping products payable under the sys- +tem of taxation of vaping products contemplated un- +der the agreement and the accounting for the taxes on +vaping products so paid; +(g) the compliance by the Government of Canada and +its agents and subservient bodies, and by the govern- +ment of the province and its agents and subservient +bodies, with the Act of Parliament under which the +system of taxation of vaping products is administered +and regulations made under that Act; and +(h) other matters that relate to, and that are consid- +ered advisable for the purposes of implementing or +administering, the system of taxation of vaping prod- +ucts contemplated under the agreement. +Amending agreements +(2) The Minister, with the approval of the Governor in +Council, may on behalf of the Government of Canada en- +ter into an agreement with the government of a province +amending or varying an agreement or arrangement with +the province entered into under subsection (1) or this +subsection. +Payments +8.91 If there is a coordinated vaping product taxation +agreement with the government of a province, the appro- +priate minister may pay to the province out of amounts +received in a fiscal year under the Act of Parliament re- +ferred to in paragraph 8.9(1)(a) +(a) amounts determined in accordance with the agree- +ment as provided, and at such times as are specified, +in the agreement; and +(b) subject to the regulations, advances in respect of +the amounts referred to in paragraph (a). +Statutory authority to make payments +8.92 Despite any other Act, the payments paid under a +coordinated vaping product taxation agreement under +the authority of section 8.91 may be made without any +other or further appropriation or authority. +85 (1) Paragraph 40(b) of the Act is replaced by +the following: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +Related Amendments +Federal-Provincial Fiscal Arrangements Act +Sections 84-85 + +Page 111 +(b) respecting the calculation and payment to a +province of advances on account of any amount that +may become payable to the province under this Act, an +administration agreement, a reciprocal taxation agree- +ment, a sales tax harmonization agreement, a coordi- +nated cannabis taxation agreement or a coordinated +vaping product taxation agreement and the adjust- +ment, by way of reduction or set off, of other payments +to the province because of those advances; +(2) Paragraph 40(d) of the Act is replaced by the +following: +(d) prescribing the time and manner of making any +payment under this Act, an administration agreement, +a sales tax harmonization agreement, a coordinated +cannabis taxation agreement or a coordinated vaping +product taxation agreement; +R.S., c. 1 (2nd Supp.) +Customs Act +86 Subsection 2(1) of the Customs Act is amend- +ed by adding the following in alphabetical order: +immediate container has the same meaning as in sec- +tion 2 of the Excise Act, 2001; (contenant immédiat) +vaping device has the same meaning as in section 2 of +the Excise Act, 2001; (dispositif de vapotage) +vaping product has the same meaning as in section 2 of +the Excise Act, 2001; (produit de vapotage) +vaping product licensee has the same meaning as in +section 2 of the Excise Act, 2001; (titulaire de licence de +produits de vapotage) +vaping substance has the same meaning as in section 2 +of the Excise Act, 2001; (substance de vapotage) +87 Subsection 97.25(3) of the Act is amended by +adding the following after paragraph (c): +(c.1) if the good is a vaping product, to a vaping prod- +uct licensee; +88 Subsection 109.2(2) of the Act is replaced by +the following: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +Related Amendments +Federal-Provincial Fiscal Arrangements Act +Sections 85-88 + +Page 112 +Contravention relating to tobacco, cannabis and +vaping products and to designated goods +(2) Every person that +(a) removes tobacco products, cannabis products, va- +ping products or designated goods or causes tobacco +products, cannabis products, vaping products or des- +ignated goods to be removed from a customs office, +sufferance warehouse, bonded warehouse or duty free +shop in contravention of this Act or the Customs Tar- +iff or the regulations made under those Acts, or +(b) sells or uses tobacco products or designated goods +designated as ships’ stores in contravention of this Act +or the Customs Tariff or the regulations made under +those Acts, +is liable to a penalty equal to double the total of the du- +ties that would be payable on like tobacco products, +cannabis products, vaping products or designated goods +released in like condition at the rates of duties applicable +to like tobacco products, cannabis products, vaping prod- +ucts or designated goods at the time the penalty is as- +sessed, or to such lesser amount as the Minister may di- +rect. +89 Subsection 117(2) of the Act is replaced by the +following: +No return of certain goods +(2) Despite subsection (1), if spirits, wine, specially dena- +tured alcohol, restricted formulations, cannabis, raw leaf +tobacco, excise stamps, tobacco products or vaping prod- +ucts are seized under this Act, they shall not be returned +to the person from whom they were seized or any other +person unless they were seized in error. +90 Subsection 119.1(1.1) of the Act is amended by +striking out “and” at the end of paragraph (c) +and by adding the following after that paragraph: +(c.1) a vaping product may only be to a vaping prod- +uct licensee; and +91 The portion of subsection 142(1) of the Act be- +fore paragraph (a) is replaced by the following: +Disposal of things abandoned or forfeit +142 (1) Unless the thing is spirits, specially denatured +alcohol, a restricted formulation, wine, raw leaf tobacco, +an excise stamp, a tobacco product or a vaping product, +anything that has been abandoned to Her Majesty in +right of Canada under this Act and anything the forfei- +ture of which is final under this Act shall +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +Related Amendments +Customs Act +Sections 88-91 + +Page 113 +92 (1) Subsection 142.1(1) of the Act is replaced +by the following: +Dealing with abandoned or forfeited alcohol, etc. +142.1 (1) If spirits, specially denatured alcohol, a re- +stricted formulation, wine, raw leaf tobacco, a tobacco +product or a vaping product is abandoned or finally for- +feited under this Act, the Minister may sell, destroy or +otherwise deal with it. +(2) Subsection 142.1(2) of the Act is amended by +striking out “and” at the end of paragraph (c) +and by adding the following after that paragraph: +(c.1) a vaping product may only be to a vaping prod- +uct licensee; and +93 Paragraph 164(1)(h.2) of the Act is replaced by +the following: +(h.2) respecting the sale of alcohol, a tobacco product, +raw leaf tobacco, specially denatured alcohol, a re- +stricted formulation or a vaping product detained, +seized, abandoned or forfeited under this Act; +1997, c. 36 +Customs Tariff +94 Paragraph 83(a) of the Customs Tariff is re- +placed by the following: +(a) in the case of goods that would have been classi- +fied under tariff item No. 9804.10.00 or 9804.20.00, the +value for duty of the goods shall be reduced by an +amount equal to that maximum specified value and, in +the case of alcoholic beverages, vaping products and +tobacco, the quantity of those goods shall, for the pur- +poses of assessing duties other than a duty under sec- +tion 54 of the Excise Act, 2001, be reduced by the +quantity of alcoholic beverages, vaping products and +tobacco and up to the maximum quantities specified +in tariff item No. 9804.10.00 or 9804.20.00, as the case +may be; +95 Subsection 89(2) of the Act is replaced by the +following: +Exception +(2) Relief of the duties or taxes levied or imposed under +sections 21.1 to 21.3, the Excise Act, 2001 or the Excise +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +Related Amendments +Customs Act +Sections 91-95 + +Page 114 +Tax Act may not be granted under subsection (1) on to- +bacco products, vaping products or designated goods. +96 Subsection 113(2) of the Act is replaced by the +following: +No refund +(2) No refund or drawback of the duties imposed on to- +bacco products or vaping products under the Excise Act, +2001 shall be granted under subsection (1), except if a re- +fund of the whole or the portion of the duties is required +to be granted under Division 3. +97 (1) The Description of Goods of tariff item No. +9804.10.00 in the List of Tariff Provisions set out in +the schedule to the Act is amended by replacing +the reference beginning with “For the purpose of +this tariff item,” and ending with “of manufac- +tured tobacco.” with a reference to “For the pur- +pose of this tariff item, goods may include either +wine not exceeding 1.5 litres or any alcoholic bev- +erages not exceeding 1.14 litres, tobacco not ex- +ceeding fifty cigars, two hundred cigarettes, two +hundred tobacco sticks and two hundred grams +of manufactured tobacco, and vaping products +not exceeding 120 millilitres of vaping substance +in liquid form, or 120 grams of vaping substance +in solid form, within any combination of not +more than twelve vaping devices and immediate +containers.” +(2) Paragraphs (a) and (b) of the Description of +Goods of tariff item No. 9804.20.00 in the List of +Tariff Provisions set out in the schedule to the +Act are replaced by the following: +(a) goods may include either wine not exceeding 1.5 +litres or any alcoholic beverages not exceeding 1.14 +litres, tobacco not exceeding fifty cigars, two hundred +cigarettes, two hundred tobacco sticks and two hun- +dred grams of manufactured tobacco, and vaping +products not exceeding 120 millilitres of vaping sub- +stance in liquid form, or 120 grams of vaping sub- +stance in solid form, within any combination of not +more than twelve vaping devices and immediate con- +tainers, if included in the baggage accompanying the +person at the time of return to Canada; and +(b) if goods (other than alcoholic beverages, cigars, +cigarettes, tobacco sticks, manufactured tobacco and +vaping products) acquired abroad are not included in +the baggage accompanying the person, they may be +classified under this tariff item if they are reported by +the person at time of return to Canada. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +Related Amendments +Customs Tariff +Sections 95-97 + +Page 115 +(3) The Description of Goods of tariff item No. +9804.30.00 in the List of Tariff Provisions set out in +the schedule to the Act is amended by replacing +the reference beginning with “For the purpose of +this tariff item,” and ending with “or manufac- +tured tobacco.” with a reference to “For the pur- +pose of this tariff item, goods shall not include +those which could otherwise be imported into +Canada free of duties, nor alcoholic beverages, +cigars, cigarettes, tobacco sticks, manufactured +tobacco or vaping products.” +(4) The Description of Goods of tariff item No. +9804.40.00 in the List of Tariff Provisions set out in +the schedule to the Act is amended by replacing +the reference beginning with “For the purpose of +this tariff item,” and ending with “or manufac- +tured tobacco.” with a reference to “For the pur- +pose of this tariff item, goods shall not include al- +coholic beverages, cigars, cigarettes, tobacco +sticks, manufactured tobacco or vaping prod- +ucts.” +(5) Paragraphs (a) and (b) of the Description of +Goods of tariff item No. 9805.00.00 in the List of +Tariff Provisions set out in the schedule to the +Act are replaced by the following: +(a) the provisions shall apply to either wine not ex- +ceeding 1.5 litres or any alcoholic beverages not ex- +ceeding 1.14 litres, tobacco not exceeding fifty cigars, +two hundred cigarettes, two hundred tobacco sticks +and two hundred grams of manufactured tobacco, and +vaping products not exceeding 120 millilitres of vaping +substance in liquid form, or 120 grams of vaping sub- +stance in solid form, within any combination of not +more than twelve vaping devices and immediate con- +tainers, if they are included in the baggage accompa- +nying the importer, and no relief from payment of du- +ties is being claimed in respect of alcoholic beverages, +tobacco or vaping products under another item in this +Chapter at the time of importation; +(b) if goods (other than alcoholic beverages, cigars, +cigarettes, tobacco sticks, manufactured tobacco and +vaping products) are not accompanying the person re- +turning from abroad, they may be classified under this +item when imported at a later time if they are reported +by the person at the time of return to Canada; and +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +Related Amendments +Customs Tariff +Section +97 + +Page 116 +(6) The Description of Goods of tariff item No. +9807.00.00 in the List of Tariff Provisions set out in +the schedule to the Act is amended by striking +out “and” at the end of subparagraph (a)(i), by +adding “and” at the end of subparagraph (a)(ii), +and by adding the following after subparagraph +(a)(ii): +(iii) vaping products not exceeding 120 millilitres of +vaping substance in liquid form, or 120 grams of va- +ping substance in solid form, within any combina- +tion of not more than twelve vaping devices and im- +mediate containers; +(7) Paragraph (c) of the Description of Goods of +tariff item No. 9807.00.00 in the List of Tariff Provi- +sions set out in the schedule to the Act is amend- +ed by replacing the reference to “(other than al- +coholic beverages, cigars, cigarettes, tobacco +sticks and manufactured tobacco)” with a refer- +ence to “(other than alcoholic beverages, cigars, +cigarettes, tobacco sticks, manufactured tobacco +and vaping products)”. +(8) The Description of Goods of tariff item No. +9816.00.00 in the List of Tariff Provisions set out in +the schedule to the Act is amended by replacing +the reference to “and not being advertising mat- +ter, tobacco or alcoholic beverages,” with a refer- +ence to “and not being advertising matter, tobac- +co, alcoholic beverages or vaping products,”. +(9) The Description of Goods of heading No. 98.25 +in the List of Tariff Provisions set out in the +schedule to the Act is amended by replacing the +reference to “alcoholic beverages; tobacco; to- +bacco products;” with a reference to “alcoholic +beverages; tobacco; tobacco products; vaping +products;”. +(10) The Description of Goods of heading No. +98.26 in the List of Tariff Provisions set out in the +schedule to the Act is amended by replacing the +reference to “alcoholic beverages; tobacco; to- +bacco products;” with a reference to “alcoholic +beverages; tobacco; tobacco products; vaping +products;”. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +Related Amendments +Customs Tariff +Section +97 + +Page 117 +(11) The Description of Goods of tariff item No. +9827.00.00 in the List of Tariff Provisions set out in +the schedule to the Act is amended by replacing +the reference beginning with “Goods, which may +include” and ending with “of manufactured to- +bacco,” with a reference to “Goods, which may +include either wine not exceeding 1.5 litres or any +alcoholic beverages not exceeding 1.14 litres, to- +bacco products not exceeding fifty cigars, two +hundred cigarettes, two hundred tobacco sticks +and two hundred grams of manufactured tobac- +co, and vaping products not exceeding 120 millil- +itres of vaping substance in liquid form, or 120 +grams of vaping substance in solid form, within +any combination of not more than twelve vaping +devices and immediate containers,”. +(12) The Description of Goods of tariff item No. +9906.00.00 in the List of Tariff Provisions set out in +the schedule to the Act is amended by replacing +the reference to “other than alcoholic beverages +and tobacco products,” with a reference to “other +than alcoholic beverages, tobacco products and +vaping products,”. +SOR/81-701 +Tariff Item No. 9805. 00. 00 +Exemption Order +98 Section 3 of the Tariff Item No. 9805.00.00 Ex- +emption Order is amended by adding the follow- +ing after paragraph (b): +(b.1) vaping products owned by and in the possession +of the importer; +SI/85-181 +Postal Imports Remission Order +99 (1) Paragraph (a) of the definition goods in +section 2 of the Postal Imports Remission Order +is replaced by the following: +(a) alcoholic beverages, cannabis products, vaping +products, cigars, cigarettes and manufactured tobacco; +(2) Section 2 of the Order is amended by adding +the following in alphabetical order: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +Related Amendments +Customs Tariff +Sections 97-99 + +Page 118 +vaping product has the same meaning as in section 2 of +the Excise Act, 2001. (produit de vapotage) +SI/85-182; SI/92-128, s. 2(F) +Courier Imports Remission Order +100 (1) Paragraph (a) of the definition goods in +section 2 of the Courier Imports Remission Or- +der is replaced by the following: +(a) alcoholic beverages, cannabis products, vaping +products, cigars, cigarettes and manufactured tobacco; +(2) Section 2 of the Order is amended by adding +the following in alphabetical order: +vaping product has the same meaning as in section 2 of +the Excise Act, 2001. (produit de vapotage) +SOR/86-1065 +Customs Sufferance Warehouses +Regulations +101 Subsection 15(4) of the Customs Sufferance +Warehouses Regulations is replaced by the fol- +lowing: +(4) For the purposes of subsection 39.1(1) of the Act, +firearms, prohibited ammunition, prohibited devices, +prohibited or restricted weapons, tobacco products and +vaping products are goods of a prescribed class that are +forfeit if they are not removed from a sufferance ware- +house within 14 days after the day on which they were re- +ported under section 12 of the Act. +102 Paragraph 17(a) of the Regulations is re- +placed by the following: +(a) stamping the goods, if the goods consist of +(i) imported raw leaf tobacco or imported tobacco +products that are placed in the sufferance ware- +house in accordance with section 39 of the Excise +Act, 2001, or +(ii) imported vaping products that are placed in the +sufferance warehouse in accordance with section +158.51 of the Excise Act, 2001; +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +Related Amendments +Postal Imports Remission Order +Sections 99-102 + +Page 119 +SOR/87-720 +Non-residents’ Temporary +Importation of Baggage and +Conveyances Regulations +103 Section 2 of the Non-residents’ Temporary +Importation of Baggage and Conveyances Regu- +lations is amended by adding the following in al- +phabetical order: +immediate container has the same meaning as in sec- +tion 2 of the Excise Act, 2001; (contenant immédiat) +vaping device has the same meaning as in section 2 of +the Excise Act, 2001; (dispositif de vapotage) +vaping substance has the same meaning as in section 2 +of the Excise Act, 2001; (substance de vapotage) +104 Subsection 4(1) of the Regulations is amend- +ed by striking out “or” at the end of paragraph +(b) and by adding the following after that para- +graph: +(b.1) 120 millilitres of vaping substance in liquid +form, or 120 grams of vaping substance in solid form, +within any combination of not more than twelve vap- +ing devices and immediate containers; or +SOR/90-225 +Tariff Item No. 9807. 00. 00 +Exemption Order +105 Paragraph 2(b) of the Tariff Item No. +9807.00.00 Exemption Order is replaced by the fol- +lowing: +(b) tobacco products and vaping products; +SOR/96-46 +Customs Bonded Warehouses +Regulations +106 Section 2 of the Customs Bonded Warehous- +es Regulations is amended by adding the follow- +ing in alphabetical order: +vaping product has the same meaning as in section 2 of +the Excise Act, 2001; (produit de vapotage) +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +Related Amendments +Non-residents’ Temporary Importation of Baggage and Conveyances Regulations +Sections 103-106 + +Page 120 +107 Section 14 of the Regulations is amended by +striking out “and” at the end of paragraph (e), by +adding “and” at the end of paragraph (f) and by +adding the following after paragraph (f): +(g) vaping products that are not stamped. +108 The Regulations are amended by adding the +following after section 16: +16.1 No licensee shall receive into or remove from a +bonded warehouse imported vaping products unless they +are to be removed from the warehouse for sale to a for- +eign diplomat in Canada or export from Canada. +109 Section 18 of the Regulations is replaced by +the following: +18 For the purposes of subsections 37(2) and 39.1(2) of +the Customs Act, tobacco products, packaged spirits and +vaping products are a prescribed class of goods and are +forfeit if they have not been removed from the bonded +warehouse within five years of the day on which the +goods are described in the form prescribed under subsec- +tion 19(2) of that Act. +SOR/2003-115 +Regulations Respecting Excise +Licences and Registrations +110 Subparagraph 2(2)(b)(i) of the Regulations +Respecting Excise Licences and Registrations is +replaced by the following: +(i) failed to comply with any Act of Parliament, oth- +er than the Act, or of the legislature of a province +respecting the taxation of or controls on alcohol, to- +bacco products or vaping products or any regula- +tions made under it, or +111 Section 4 of the Regulations is replaced by +the following: +4 A licence is valid for the period specified in the licence, +which period shall not exceed +(a) in the case of a vaping product licence, three years; +and +(b) in any other case, two years. +112 (1) The portion of subsection 5(1) of the Reg- +ulations before paragraph (a) is replaced by the +following: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +Related Amendments +Customs Bonded Warehouses Regulations +Sections 107-112 + +Page 121 +5 (1) For the purposes of paragraph 23(3)(b) of the Act, +the amount of security to be provided by an applicant for +a spirits licence, a tobacco licence, a cannabis licence or a +vaping product licence is an amount of not less +than $5,000 and +(2) Paragraph 5(1)(b) of the Regulations is re- +placed by the following: +(b) in the case of a tobacco licence, a cannabis licence +or a vaping product licence, be sufficient to ensure +payment of the amount of duty referred to in para- +graph 160(b) of the Act up to a maximum amount +of $5 million per licence. +113 Paragraph 12(1)(e) of the Regulations is re- +placed by the following: +(e) fails to comply with any Act of Parliament, other +than the Act, or of the legislature of a province re- +specting the taxation of or controls on alcohol, tobacco +products or vaping products, or any regulations made +under it; or +SOR/2003-203; 2018, c. 12, s. 106 +Regulations Respecting the +Possession of Tobacco Products or +Cannabis Products That Are Not +Stamped +114 The title of the Regulations Respecting the +Possession of Tobacco Products or Cannabis +Products That Are Not Stamped is replaced by +the following: +Regulations Respecting the Possession of Tobacco, +Cannabis or Vaping Products That Are Not Stamped +115 The Regulations are amended by adding the +following after section 1.3: +1.4 For the purposes of paragraph 158.44(3)(b) of the +Excise Act, 2001, a person may possess a vaping product +that is not stamped if +(a) the person is authorized by an officer under sec- +tion 19 of the Customs Act to transport vaping prod- +ucts that have been reported under section 12 of that +Act and is acting in accordance with that authoriza- +tion; or +(b) the person has in their possession documentation +that provides evidence that the person is transporting +the vaping product on behalf of +(i) a vaping product licensee, +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +Related Amendments +Regulations Respecting Excise Licences and Registrations +Sections 112-115 + +Page 122 +(ii) an excise warehouse licensee, or +(iii) an accredited representative. +SOR/2003-288; 2018, c. 12, s. 108 +Stamping and Marking of Tobacco +and Cannabis Products Regulations +116 The title of the Stamping and Marking of +Tobacco and Cannabis Products Regulations is +replaced by the following: +Stamping and Marking of Tobacco, Cannabis and Va- +ping Products Regulations +117 Paragraph 2(c) of the Regulations is re- +placed by the following: +(c) a cannabis product or a vaping product is pack- +aged in a prescribed package when it is packaged in +the smallest package — including any outer wrapper, +package, box or other container — in which it is sold to +the consumer. +118 (1) Subsection 4(1) of the Regulations is re- +placed by the following: +4 (1) For the purposes of subsections 25.1(1) and +158.36(1) of the Act, a prescribed person is a person that +satisfies the requirements set out in paragraphs 2(2)(a) to +(e) of the Regulations Respecting Excise Licences and +Registrations. +(2) Section 4 of the Regulations is amended by +adding the following after subsection (3): +(4) For the purposes of paragraph 158.38(2)(d) of the +Act, the following persons are prescribed: +(a) a person that transports a vaping excise stamp on +behalf of a person described in paragraph 158.38(2)(a) +or (b) of the Act; and +(b) a person that has in their possession vaping excise +stamps only for the purpose of applying adhesive to +the stamps on behalf of the vaping product licensee to +which the stamps are issued. +119 The Regulations are amended by adding the +following after section 4: +4.01 (1) If the Minister holds, at any time in a calendar +month, security that a person has provided under subsec- +tion 158.36(3) of the Act and if the person is not a vaping +product licensee throughout the calendar month, the +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +Related Amendments +Regulations Respecting the Possession of Tobacco Products or Cannabis Products That Are +Not Stamped +Sections 115-119 + +Page 123 +person must file with the Minister an information return +for the calendar month in respect of the possession and +use of any vaping excise stamps issued to the person. +(2) The information return of a person for a particular +calendar month must +(a) be made in prescribed form containing prescribed +information; and +(b) be filed in prescribed manner on or before the last +day of the first calendar month following the particu- +lar calendar month. +120 The Regulations are amended by adding the +following after section 4.1: +4.11 (1) Subject to subsections (2) to (4), the amount of +security for the purpose of subsection 158.36(3) of the Act +is the greater of +(a) $1.00 multiplied by the number of vaping excise +stamps that either are in the applicant’s possession at +the time of application or are to be issued in respect of +the application, and +(b) $5,000. +(2) Subject to subsections (3) and (4), if the amount de- +termined under paragraph (1)(a) is greater than $5 mil- +lion, the amount of security for the purpose of subsection +158.36(3) of the Act is $5 million. +(3) If a person has provided security under paragraph +23(3)(b) of the Act in an amount that is equal to or +greater than the amount of security determined in accor- +dance with subsections (1) and (2), the amount of securi- +ty for the purpose of subsection 158.36(3) of the Act is nil. +(4) If a person has provided security under paragraph +23(3)(b) of the Act in an amount that is less than the +amount of security determined in accordance with sub- +sections (1) and (2), the amount of security for the pur- +pose of subsection 158.36(3) of the Act is the difference +between the amount of security determined in accor- +dance with subsections (1) and (2) and the amount of se- +curity provided by the person under paragraph 23(3)(b) +of the Act. +121 The portion of section 4.2 of the Regulations +before paragraph (a) is replaced by the follow- +ing: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +Related Amendments +Stamping and Marking of Tobacco and Cannabis Products Regulations +Sections 119-121 + +Page 124 +4.2 For the purposes of the definition stamped in sec- +tion 2 of the Act and subsections 25.3(1), 158.05(1) and +158.38(1) of the Act, the prescribed manner of affixing an +excise stamp to a package is by affixing the stamp +122 The Regulations are amended by adding the +following after section 5: +5.1 (1) For the purposes of paragraphs 158.44(3)(e) and +158.47(2)(c) and section 158.56 of the Act, the prescribed +limit is five units of vaping products. +(2) For the purposes of subsection (1), a unit of vaping +products consists of 120 millilitres of vaping substance in +liquid form, or 120 grams of vaping substance in solid +form, within any combination of not more than 12 vaping +devices and immediate containers. +123 The heading after section 7 of the Regula- +tions is replaced by the following: +Vaping Product Marking +8 (1) For the purposes of subsection 158.5(1) of the Act, +the required vaping product markings are +(a) for containers of vaping products manufactured in +Canada, the marking set out in Schedule 7; and +(b) for containers of vaping products manufactured +outside Canada, the marking set out in Schedule 8. +(2) The vaping product markings must be printed on or +affixed to the container in a conspicuous manner and in +accordance with the specifications set out in the appro- +priate Schedule. +9 (1) For the purposes of subsection 158.5(2) of the Act, +the required vaping product marking is the marking set +out in Schedule 8. +(2) The vaping product marking must be printed on or +affixed to the container in a conspicuous manner and in +accordance with the specifications set out in Schedule 8. +124 Schedule 7 to the Regulations is amended by +replacing +the +reference +after +the +heading +“SCHEDULE 7” with the following: +(Sections 6 and 8) +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +Related Amendments +Stamping and Marking of Tobacco and Cannabis Products Regulations +Sections 121-124 + +Page 125 +125 The heading of Schedule 7 to the Regulations +is replaced by the following: +Marking for Containers of +Manufactured Tobacco, Cigars +and Vaping Products +Manufactured in Canada +126 Schedule 8 to the Regulations is amended by +replacing +the +reference +after +the +heading +“SCHEDULE 8” with the following: +(Sections 6 to 9) +127 The heading of Schedule 8 to the Regulations +is replaced by the following: +Marking for Containers of +Manufactured Tobacco, Cigars +and Vaping Products +Manufactured Outside Canada, +Containers of Cigars +Manufactured in Canada and +Intended for Delivery to a Duty +Free Shop or as Ships’ Stores +and Containers of Imported +Manufactured Tobacco and +Cigars Referred to in Subsection +38(2) of the Act +Application +128 (1) Sections 158.35, 158.51 to 158.53, 158.68 and +158.69 of the Excise Act, 2001, as enacted by sec- +tion 59, subsection 64(2), sections 65 to 69, subsec- +tions 70(2) and (4), sections 71, 72 and 75, subsec- +tion 81(2) and sections 82, 87 to 105, 115 and 122 +come into force on October 1, 2022. +(2) Sections 158.41, 158.57 and 158.58 of the Excise +Act, 2001, as enacted by section 59, apply in re- +spect of vaping products manufactured in +Canada that are packaged on or after October 1, +2022 and to vaping products that are imported in- +to Canada or released (as defined in subsection +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +Related Amendments +Stamping and Marking of Tobacco and Cannabis Products Regulations +Sections 125-128 + +Page 126 +2(1) of the Customs Act) on or after that day. +Those sections of the Excise Act, 2001 also apply +in respect of +(a) vaping products manufactured in Canada +that are packaged before October 1, 2022 if the +vaping products are stamped after the day on +which this Act receives royal assent; and +(b) vaping products that are imported into +Canada or released (as defined in subsection +2(1) of the Customs Act) after the day on which +this Act receives royal assent but before Octo- +ber 1, 2022 if the vaping products are stamped +when they are reported under the Customs +Act. +(3) Sections 158.42 to 158.47 and 158.49, subsection +158.5(2), sections 158.54 to 158.56, 158.6 and 158.61 of +the Excise Act, 2001, as enacted by section 59, sub- +section 63(1) and sections 107 to 109 come into +force on October 1, 2022. However, those provi- +sions of the Excise Act, 2001, subsection 63(1) and +sections 107 to 109 do not apply before 2023 in re- +spect of +(a) vaping products manufactured in Canada +that are packaged before October 1, 2022 and +that are not stamped; and +(b) vaping products that are imported into +Canada or released (as defined in subsection +2(1) of the Customs Act) before October 1, 2022 +and that are not stamped. +(4) In applying sections 158.57 and 158.58 of the Ex- +cise Act, 2001, as enacted by section 59, in respect +of vaping products manufactured in Canada that +are packaged before October 1, 2022, paragraph +(a) of each of those sections 158.57 and 158.58 is to +be read as follows: +(a) in the case of vaping products manufactured in +Canada, by the vaping product licensee that packaged +the vaping products and at the later of the beginning +of October 1, 2022 and the time they are stamped; and +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +Application +Section +128 + +Page 127 +DIVISION 2 +2002, c. 22 +Excise Act, 2001 (Wine) +129 (1) Section 87 of the Excise Act, 2001 is +amended by adding “and” at the end of para- +graph (a) and by repealing paragraph (a.1). +(2) Subsection (1) comes into force, or is deemed +to have come into force, on June 30, 2022. +130 (1) Paragraph 88(2)(i) of the Act is replaced +by the following: +(i) that is wine referred to in paragraph 135(2)(b) may +be possessed by any person; and +(2) Subsection (1) comes into force, or is deemed +to have come into force, on June 30, 2022, but does +not apply to wine packaged before that day. +131 (1) Subsection 134(3) of the Act is replaced by +the following: +Exception +(3) Subsection (1) does not apply to wine +(a) that is produced by an individual for their personal +use and that is consumed in the course of that use; or +(b) that is produced in Canada from honey or apples +and composed wholly of agricultural or plant product +grown in Canada. +(2) Subsection (1) applies after June 29, 2022. +132 (1) Paragraph 135(2)(a) of the Act is replaced +by the following: +(a) produced in Canada from honey or apples and +composed wholly of agricultural or plant product +grown in Canada; +(2) Subsection (1) applies to wine packaged on or +after June 30, 2022. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +DIVISION 2 Excise Act, 2001 (Wine) +Sections 129-132 + +Page 128 +DIVISION 3 +R.S., c. E-12 +Excise Act (Beer) +133 (1) The portion of the definition beer or malt +liquor in section 4 of the Excise Act before para- +graph (a) is replaced by the following: +beer or malt liquor means any product (other than +wine, as defined in section 2 of the Excise Act, 2001) con- +taining more than 0.5% absolute ethyl alcohol by volume +that is +(2) Subsection (1) comes into force, or is deemed +to have come into force, on July 1, 2022. +134 (1) Subsection 170.1(3) of the Act is replaced +by the following: +Exclusion of exports +(3) In subsection (1), the reference to “first 75,000 hec- +tolitres of beer and malt liquor brewed in Canada” does +not include beer or malt liquor that is exported or +deemed to be exported under section 173. +(2) Subsection (1) comes into force, or is deemed +to have come into force, on July 1, 2022. +PART 4 +Select Luxury Items Tax Act +Enactment of Act +Enactment +135 (1) The Select Luxury Items Tax Act, whose +text is as follows and whose schedule is set out in +Schedule 2 to this Act, is enacted: +An Act respecting the taxation of select luxury items +Short Title +Short title +1 This Act may be cited as the Select Luxury Items Tax +Act. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 3 Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts +DIVISION 3 Excise Act (Beer) +Sections 133-135 + +Page 129 +PART 1 +Select Luxury Items Tax +DIVISION 1 +Interpretation and Application +SUBDIVISION A +Interpretation +Definitions +2 (1) The following definitions apply in this Act. +assessment means an assessment under this Act and +includes a reassessment. (cotisation) +bank means a bank as defined in section 2 of the Bank +Act or an authorized foreign bank, as defined in that +section, that is not subject to the restrictions and require- +ments referred to in subsection 524(2) of that Act. +(banque) +calendar quarter means a period of three months be- +ginning on the first day of January, April, July or Octo- +ber. (trimestre civil) +Commissioner means, except in sections 80 and 81 and +subsections 153(1) to (8) and (19), the Commissioner of +Revenue appointed under section 25 of the Canada Rev- +enue Agency Act. (commissaire) +common-law partner of an individual at a particular +time means a person who is the common-law partner of +the individual at the particular time for the purposes of +the Income Tax Act. (conjoint de fait) +confirmed delivery service means certified or regis- +tered mail or any other service that provides a record that +a notice or document has been sent or delivered. (ser- +vice de messagerie) +consideration includes any amount that is payable by +operation of law. (contrepartie) +credit union has the same meaning as in subsection +137(6) of the Income Tax Act. (caisse de crédit) +export means export from Canada. (exportation) +government entity means +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 130 +(a) a department or agency of the government of +Canada or of a province; +(b) a municipality; +(c) an aboriginal government as defined in subsec- +tion 2(1) of the Federal-Provincial Fiscal Arrange- +ments Act; +(d) a corporation all of the shares (except directors’ +qualifying shares) of the capital stock of which are +owned by one or more persons each of which is +(i) Her Majesty in right of Canada or a province, +(ii) a municipality, or +(iii) a corporation described in this paragraph; or +(e) a board or commission, established by Her +Majesty in right of Canada or a province, that per- +forms an administrative or regulatory function of gov- +ernment, or by a municipality, that performs an ad- +ministrative or regulatory function of a municipality. +(entité gouvernementale) +guest of a particular person on a subject item means an +individual that uses or enjoys the subject item and that +(a) does not deal at arm’s length with the particular +person; +(b) is an employee of the particular person or of a per- +son that does not deal at arm’s length with the particu- +lar person; or +(c) uses or enjoys the subject item, at the invitation of +the particular person or a person referred to in para- +graph (a) or (b), for no consideration or for nominal +consideration. (invité) +identification number of a subject item means an iden- +tification number that is satisfactory to the Minister and +is unique to the subject item. (numéro d’identification) +import means import into Canada. (importation) +Indigenous governing body has the same meaning as +in section 2 of the Department of Indigenous Services +Act. (corps dirigeant autochtone) +judge, in respect of any matter, means a judge of a supe- +rior court having jurisdiction in the province in which the +matter arises or a judge of the Federal Court. (juge) +military authority means the Canadian Forces, within +the meaning of section 14 of the National Defence Act, +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 131 +the Department of National Defence or a visiting force, +as defined in section 2 of the Visiting Forces Act. (auto- +rité militaire) +Minister means the Minister of National Revenue. (mi- +nistre) +municipality means +(a) an incorporated city, town, village, metropolitan +authority, township, district, county or rural munici- +pality or other incorporated municipal body however +designated; or +(b) any other local authority that the Minister may de- +termine to be a municipality for the purposes of this +Act. (municipalité) +officer means, except in sections 75, 127 and 149, +(a) a person who is appointed or employed in the ad- +ministration or enforcement of this Act; and +(b) with respect to imported goods that have not been +released under the Customs Act, an officer as defined +in subsection 2(1) of that Act. (préposé) +passenger seat means a seat on an aircraft other than a +pilot seat. (siège passager) +person means an individual, a partnership, a corpora- +tion, the estate or succession of a deceased individual, a +trust, a joint venture, a government or a body that is a so- +ciety, a union, a club, an association, a commission or an- +other organization of any kind. (personne) +personal representative, of a deceased individual or the +estate or succession of a deceased individual, means the +executor of the individual’s will, the liquidator of the in- +dividual’s succession, the administrator of the estate or +any person that is responsible under the appropriate law +for the proper collection, administration, disposition and +distribution of the assets of the estate or succession. (re- +présentant personnel) +pilot seat includes a flight engineer seat or a flight deck +observer seat. (siège destiné au pilote) +police authority means +(a) the Royal Canadian Mounted Police, the Ontario +Provincial Police, the Sûreté du Québec, the Canadian +Coast Guard or a municipal or regional police force es- +tablished in accordance with provincial legislation; +(b) a government entity that is responsible for the +preservation and maintenance of the public peace; or +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 132 +(c) a prescribed person. (corps policier) +prescribed means +(a) in the case of a form or the manner of filing a +form, authorized by the Minister; +(b) in the case of the information to be given on or +with a form, specified by the Minister; and +(c) in any other case, prescribed by regulation or de- +termined in accordance with rules prescribed by regu- +lation. (Version anglaise seulement) +qualifying aircraft user means a person (other than a +prescribed person) that is +(a) Her Majesty in right of Canada or a province; +(b) a person that is an agent of Her Majesty in right of +Canada or a province; +(c) a municipality; +(d) an Indigenous governing body; +(e) a police authority; +(f) a government entity that has as its primary respon- +sibility the conduct of emergency medical response ac- +tivities or emergency fire response activities; +(g) a government entity that has as its primary re- +sponsibility the operation, management and mainte- +nance of a hospital; +(h) a person that has as its primary responsibility the +operation, management and maintenance of a listed +airport, as defined in section 2 of the Air Travellers +Security Charge Act; +(i) NAV CANADA, a corporation incorporated on May +26, 1995 under Part II of the Canada Corporations +Act; or +(j) a prescribed person. (utilisateur admissible d’aé- +ronef) +record means any material on which representations, in +any form, of information or concepts are recorded or +marked and that is capable of being read or understood +by a person, a computer system or other device. (re- +gistre) +registered vendor, in respect of a type of subject item, +means a person that is registered under Division 5 as a +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 133 +vendor in respect of that type of subject item. (vendeur +inscrit) +select subject vessel means +(a) a subject vessel (other than a prescribed subject +vessel) that is equipped with a bed, bunk, berth or +similar sleeping amenity; or +(b) a prescribed subject vessel. (navire assujetti dési- +gné) +subject aircraft means an aircraft that is +(a) an aeroplane, glider or helicopter, as those terms +are defined in subsection 101.01(1) of the Canadian +Aviation Regulations, that has a date of manufacture +after 2018 if the aircraft +(i) is equipped only with one or more pilot seats +and cannot have any other seating configuration, +(ii) is equipped only with one or more pilot seats, +or is not equipped with any seats, and cannot have +a seating configuration, excluding pilot seats, of 40 +or greater, or +(iii) is equipped with one or more pilot seats and +one or more passenger seats and has a seating con- +figuration, excluding pilot seats, of 39 or fewer, or +(b) a prescribed aircraft, +but does not include +(c) an aircraft that is designed and equipped for mili- +tary activities, +(d) an aircraft that is equipped for the carriage of +goods only, +(e) an aircraft +(i) that is registered with a government before +September 2022 otherwise than solely for a purpose +incidental to its manufacture, offering for sale or +transportation, and +(ii) in respect of which a user of the aircraft has +possession before September 2022, +(f) a subject vehicle, or +(g) a prescribed aircraft. (aéronef assujetti) +subject item means a subject aircraft, a subject vehicle +or a subject vessel. (bien assujetti) +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 134 +subject vehicle means +(a) a motor vehicle that +(i) is designed or adapted primarily to carry indi- +viduals on highways and streets, +(ii) has a seating capacity of not more than 10 indi- +viduals, +(iii) has a gross vehicle weight rating, as that +term is defined in subsection 2(1) of the Motor Ve- +hicle Safety Regulations, that is less than or equal +to 3,856 kg, +(iv) has a date of manufacture after 2018, and +(v) is designed to travel with four or more wheels in +contact with the ground, or +(b) a prescribed motor vehicle, +but does not include +(c) an ambulance, +(d) a hearse, +(e) a motor vehicle that is clearly marked for policing +activities, +(f) a motor vehicle that is clearly marked and +equipped for emergency medical response activities or +emergency fire response activities, +(g) a recreational vehicle that is designed or adapted +to provide temporary residential accommodations, +and is equipped with at least four of the following ele- +ments: +(i) cooking facilities, +(ii) a refrigerator or ice box, +(iii) a self-contained toilet, +(iv) a heating or air-conditioning system that can +function independently of the vehicle engine, +(v) a potable water supply system that includes a +faucet and sink, and +(vi) a 110-V to 125-V electric power supply, or a liq- +uefied petroleum gas supply, that can function in- +dependently of the vehicle engine, +(h) a motor vehicle +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 135 +(i) that is registered before September 2022 with a +government, and +(ii) in respect of which possession was transferred +to a user of the motor vehicle before September +2022, or +(i) a prescribed motor vehicle. (véhicule assujetti) +subject vessel means +(a) a vessel that +(i) is designed or adapted for leisure, recreation or +sport activities, and +(ii) has a date of manufacture after 2018, or +(b) a prescribed vessel, +but does not include +(c) a floating home, as defined in subsection 123(1) +of the Excise Tax Act, +(d) a vessel that is designed and equipped solely for +(i) commercially catching, harvesting or transport- +ing fish or other living marine resources, or +(ii) ferrying passengers or vehicles on a fixed +schedule between two or more points, +(e) a vessel that has sleeping facilities for more than +100 individuals who are not crew members, +(f) a vessel +(i) that is registered with a government before +September 2022, otherwise than solely for a pur- +pose incidental to its manufacture, offering for sale +or transportation, and +(ii) in respect of which a user of the vessel has pos- +session before September 2022, +(g) a subject vehicle or a subject aircraft, or +(h) a prescribed vessel. (navire assujetti) +tax means, except in subsection 13(1), sections 15 and +16, subparagraph 18(2)(a)(iv) and paragraph 42(1)(b), tax +payable under this Act. (taxe) +vessel means a boat, ship or craft that is designed, or is +capable of being used, solely or partly for navigation in, +on, through or immediately above water, without regard +to the method or lack of propulsion. (navire) +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 136 +Definition of Canada +(2) In or in respect of Subdivision B of Division 2, +Canada has the same meaning as in the Customs Act. +Meaning of administration or enforcement of this Act +3 For greater certainty, a reference in this Act to the ad- +ministration or enforcement of this Act includes the col- +lection of any amount payable under this Act. +Person resident in Canada +4 For the purposes of Division 2 of Part 2 and paragraph +21(6)(e), a person is deemed to be resident in Canada at +any time +(a) in the case of a corporation, if the corporation is +incorporated or continued in Canada and not contin- +ued elsewhere; +(b) in the case of a partnership, a joint venture, an un- +incorporated society, a club, an association or an orga- +nization, or a branch thereof, if the member or partici- +pant, or a majority of the members or participants, +having management and control thereof is or are resi- +dent in Canada at that time; +(c) in the case of a labour union, if the labour union is +carrying on activities as such in Canada and has a local +union or branch in Canada at that time; and +(d) in the case of an individual, if the individual is +deemed under any of paragraphs 250(1)(b) to (f) of the +Income Tax Act to be resident in Canada at that time. +Arm’s length +5 (1) For the purposes of this Act +(a) related persons are deemed not to deal with each +other at arm’s length; +(b) associated persons are deemed not to deal with +each other at arm’s length; and +(c) it is a question of fact whether persons not related +to, or not associated with, each other are, at any par- +ticular time, dealing with each other at arm’s length. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 137 +Related persons +(2) For the purposes of this Act, persons are related to +each other if they are related persons within the meaning +of subsections 251(2) to (6) of the Income Tax Act, except +that +(a) a reference in those subsections to “corporation” is +to be read as a reference to “corporation or partner- +ship”; and +(b) a reference in those subsections to “shares of the +capital stock of a corporation” or “shareholders” is, in +respect of a partnership, to be read as a reference to +“rights in a partnership” or “partners”, respectively. +Related persons — partnership +(3) For the purposes of this Act, a member of a partner- +ship is deemed to be related to the partnership. +Associated persons +(4) A particular corporation is associated with another +corporation for the purposes of this Act if, by reason of +subsections 256(1) to (6) of the Income Tax Act, the par- +ticular corporation is associated with the other corpora- +tion for the purposes of that Act. +Corporations controlled by same person or group +(5) A person other than a corporation is associated with +a particular corporation for the purposes of this Act if the +particular corporation is controlled by the person or by a +group of persons of which the person is a member and +each of whom is associated with each of the others. +Partnership or trust +(6) For the purposes of this Act, a person is associated +with +(a) a partnership if the total of the shares of the profits +of the partnership to which the person and all other +persons who are associated with the person are enti- +tled is more than half of the total profits of the part- +nership, or would be more than half of the total profits +of the partnership if it had profits; and +(b) a trust if the total of the values of the interests in +the trust of the person and all other persons who are +associated with the person is more than half of the to- +tal value of all interests in the trust. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 138 +Association with third person +(7) For the purposes of this Act, a person is associated +with another person if each of them is associated with the +same third person. +Associated persons — partnership +(8) For the purposes of this Act, a member of a partner- +ship is deemed to be associated with the partnership. +Negative amounts +6 Except as specifically otherwise provided, if an amount +or a number is required under this Act to be determined +or calculated by or in accordance with an algebraic for- +mula and the amount or number when so determined or +calculated would, in the absence of this section, be a neg- +ative amount or number, it is deemed to be zero. +Sale — subject item +7 (1) For the purposes of this Act, a vendor sells a sub- +ject item to a purchaser if +(a) the vendor transfers ownership of the subject item +to the purchaser by way of sale under an agreement; +and +(b) the subject item is delivered or made available in +Canada in relation to the agreement. +Partial ownership +(2) For the purposes of this Act, a particular person +transfers ownership of a subject item to another person +even if, at the time ownership is transferred to the other +person, the particular person retains partial ownership or +transfers partial ownership to any third person. +Security interest — not a sale +(3) For the purposes of this Act and despite subsection +(1), if, under an agreement entered into in respect of a +debt or obligation, a person transfers a subject item or an +interest in a subject item for the purpose of securing pay- +ment of the debt or performance of the obligation, the +transfer is deemed not to be a sale of the subject item and +the transferee is deemed not to be an owner of the sub- +ject item only because of the transfer, and if, on payment +of the debt or performance of the obligation or the for- +giveness of the debt or obligation, the subject item or in- +terest is retransferred, the retransfer of the subject item +or interest is deemed not to be a sale of a subject item. +When sale completed +(4) Subject to subsection (5), for the purposes of this Act, +the sale of a subject item to a purchaser is completed at +the earlier of +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 139 +(a) the time at which possession of the subject item is +transferred to the purchaser or to another person, and +(b) the time at which ownership of the subject item is +transferred to the purchaser. +When sale completed — regulations +(5) For the purposes of this Act, if prescribed conditions +are met in respect of the sale of a subject item to a pur- +chaser, the sale is completed at the prescribed time. +Deemed sale +(6) For the purposes of this Act, except if prescribed cir- +cumstances exist, if ownership of a subject item is trans- +ferred in any manner otherwise than by way of sale from +a particular person to another person and if the subject +item is delivered or made available in Canada, the follow- +ing rules apply: +(a) the particular person is deemed to sell the subject +item to the other person; +(b) the particular person is deemed to be the vendor +in respect of the sale and the other person is deemed +to be the purchaser in respect of the sale; +(c) the sale is deemed to be completed at the earlier of +the time at which the possession of the subject item is +transferred and the time at which ownership of the +subject item is transferred; and +(d) the value of the consideration paid for the sale of +the subject item is deemed to be equal to the total of +(i) the retail value of the subject item at the time at +which the sale is completed as determined under +paragraph (c), and +(ii) a prescribed amount. +Improvement to subject item +8 (1) Subject to subsection (2), for the purposes of this +Act, an improvement in respect of a subject item is the +provision of property or a service in any manner, includ- +ing by way of sale, transfer, barter, exchange, licence, +rental, lease, gift or disposition, that is a provision of +(a) tangible personal property that is installed in or +on, or is affixed to, the subject item; +(b) a service that modifies the subject item and is +physically performed in respect of the subject item; or +(c) a prescribed property or service. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 140 +Excluded improvements +(2) For the purposes of this Act, the provision of proper- +ty or a service is deemed not to be an improvement in re- +spect of a subject item if it is +(a) the provision of a repair, cleaning or maintenance +service in respect of the subject item; +(b) the provision of tangible personal property to re- +place other tangible personal property that is a part of +the subject item and that is damaged, defective or +non-functioning; +(c) in the case of a subject vehicle, +(i) the provision of tangible personal property that +is, or a service that is in respect of, +(A) a child safety seating system or a child safety +restraint system, or +(B) a trailer or camper, or +(ii) the provision of tangible personal property or a +service that specially equips or adapts the subject +vehicle +(A) for its use by or in transporting an individual +using a wheelchair, or +(B) with an auxiliary driving control to facilitate +the operation of the vehicle by an individual with +a disability; or +(d) the provision of a prescribed property or service. +When improvement completed +(3) Subject to subsection (4), for the purposes of this Act, +an improvement in respect of a subject item is completed +at +(a) if the improvement is the provision of tangible +personal property that is installed in or on, or is af- +fixed to, the subject item, the time at which the instal- +lation of the tangible personal property is physically +completed; and +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 141 +(b) if the improvement is the provision of a service +that is physically performed in respect of the subject +item, the time at which the performance of the service +is physically completed. +When improvement completed — regulations +(4) For the purposes of this Act, if prescribed conditions +are met in respect of an improvement in respect of a sub- +ject item, the improvement is completed at the pre- +scribed time. +Price threshold +9 For the purposes of this Act, the price threshold in re- +spect of a subject item is +(a) in the case of a subject vehicle, $100,000; +(b) in the case of a subject aircraft, $100,000; and +(c) in the case of a subject vessel, $250,000. +Definition of business +10 (1) For the purposes of this section, a business in- +cludes a profession, calling, trade, manufacture or under- +taking of any kind whatever and any activity engaged in +on a regular or continuous basis that involves the provi- +sion of property by way of lease, licence or similar ar- +rangement, but does not include an office or employ- +ment. +Where flights originate and terminate +(2) For the purposes of this section, a flight of a subject +aircraft originates at the location of the take-off, as that +term is defined in subsection 101.01(1) of the Canadian +Aviation Regulations, of the subject aircraft and termi- +nates at the location of the landing, as that term is de- +fined in that subsection, of the subject aircraft. +Qualifying flight +(3) For the purposes of this section, except if prescribed +circumstances exist, a subject aircraft is used for a flight +that is a qualifying flight if +(a) the purpose of the flight is to provide +(i) a scheduled service, as defined in subsection +3(1) of the Transportation Information Regula- +tions, +(ii) an air ambulance service, +(iii) an aerial fire fighting service, +(iv) an aerial forest fire management service, +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 142 +(v) an aerial search and rescue operation, +(vi) an aerial transportation service for the retrieval +and transportation of organs for human transplant, +(vii) an aerial weather altering service, +(viii) an aerial survey service, +(ix) an aerial construction service, +(x) an aerial spraying or spreading service, +(xi) an air flight training service, or +(xii) for the carriage of goods only; +(b) it is the case that +(i) all or substantially all of the passenger seats on +the flight are offered for sale on a seat-by-seat basis +to the general public, and +(ii) all or substantially all of the passengers on the +flight are individuals that deal at arm’s length with +(A) the person that operates the subject aircraft +for the flight, +(B) each person that is an owner of the subject +aircraft, and +(C) in cases where one or more of those passen- +ger seats are offered for sale by a person other +than a person referred to in clause (A) or (B), +that other person; +(c) the flight originates or terminates in a remote +community listed in the schedule; +(d) the flight is conducted in the course of a business +of an owner of the subject aircraft (other than a busi- +ness without a reasonable expectation of profit) and +otherwise than for the leisure, recreation, sport or oth- +er enjoyment of +(i) an owner of the subject aircraft, +(ii) a guest of an owner of the subject aircraft on the +subject aircraft, or +(iii) another person that has the right to use the +subject aircraft under a lease, licence or similar ar- +rangement or a guest of the other person on the +subject aircraft; or +(e) prescribed circumstances exist. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 143 +Qualifying subject aircraft +(4) For the purposes of this Act, except in prescribed cir- +cumstances, a subject aircraft is a qualifying subject air- +craft of a person at a particular time that is on a particu- +lar day if the person is an owner of the subject aircraft at +the particular time and the amount determined by the +following formula is greater than or equal to 0.9: +(A + B + C) / (D + E + F) +where +A +is +(a) if the particular time is the time at which the +person acquires ownership of the subject aircraft, +zero, and +(b) in any other case, the total of all amounts, +each of which is a duration of time that the subject +aircraft was used for a flight that was a qualifying +flight and that originated or terminated at a loca- +tion in Canada during the period that ends on the +particular day and begins on the later of +(i) the day on which the person became an +owner of the subject aircraft, and +(ii) the day that is one year before the particu- +lar day; +B +is the total of all amounts, each of which is a duration +of time for which it can reasonably be expected that +the subject aircraft will be used for a flight +(a) that is a qualifying flight, +(b) that originates or terminates at a location in +Canada during the period that begins on the day +after the particular day and that ends on the day +that is one year after the particular day, and +(c) throughout which the person is an owner of +the subject aircraft; +C +is a prescribed amount; +D +is +(a) if the particular time is the time at which the +person acquires ownership of the subject aircraft, +zero, and +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 144 +(b) in any other case, the total of all amounts, +each of which is a duration of time that the subject +aircraft was used for a flight that originated or ter- +minated at a location in Canada during the period +that ends on the particular day and begins on the +later of +(i) the day on which the person acquired own- +ership of the subject aircraft, and +(ii) the day that is one year before the particu- +lar day; +E +is the total of all amounts, each of which is a duration +of time for which it can reasonably be expected that +the subject aircraft will be used for a flight +(a) that originates or terminates at a location in +Canada during the period that begins on the day +after the particular day and that ends on the day +that is one year after the particular day, and +(b) throughout which the person is an owner of +the subject aircraft; and +F +is a prescribed amount. +Qualifying subject aircraft — regulations +(5) For the purposes of this Act, a subject aircraft is a +qualifying subject aircraft of a person at any time if pre- +scribed conditions are met. +Where vessel journeys originate and terminate +11 (1) For the purposes of this section, a journey by a +subject vessel originates at the location at which any of +the following activities occur and terminates at the loca- +tion where the subject vessel is next stopped and at +which any of the following activities occur: +(a) individuals embark on or disembark from the sub- +ject vessel; +(b) goods are loaded onto or removed from the subject +vessel; and +(c) the subject vessel is stopped to allow for its servic- +ing or refuelling or for emergency or safety purposes. +Use in Canada — vessel +(2) For the purposes of this section, if a journey by a sub- +ject vessel originates or terminates at a location in +Canada, the subject vessel is deemed to be used in +Canada for the duration of the entire journey. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 145 +Qualifying activities — vessel +(3) For the purposes of this section, except in prescribed +circumstances, a subject vessel (other than a select sub- +ject vessel) is used in Canada in the course of a qualifying +activity at any time if +(a) the subject vessel is used in Canada at that time +otherwise than for the leisure, recreation, sport or oth- +er enjoyment of +(i) an owner of the subject vessel, +(ii) a guest of an owner of the subject vessel on the +subject vessel, or +(iii) another person that has the right to use the +subject vessel under a lease, licence or similar ar- +rangement or a guest of the other person on the +subject vessel; or +(b) prescribed circumstances exist. +Qualifying subject vessel +(4) For the purposes of this Act, except in prescribed cir- +cumstances, a subject vessel (other than a select subject +vessel) is a qualifying subject vessel of a person at a par- +ticular time that is on a particular day if the person is an +owner of the subject vessel at the particular time and the +amount determined by the following formula is greater +than or equal to 0.9: +(A + B + C) / (D + E + F) +where +A +is +(a) if the particular time is the time at which the +person acquires ownership of the subject vessel, +zero, and +(b) in any other case, the total of all amounts, +each of which is a duration of time that the subject +vessel was used in Canada in the course of a quali- +fying activity during the period that ends on the +particular day and begins on the later of +(i) the day on which the person acquired own- +ership of the subject vessel, and +(ii) the day that is one year before the particu- +lar day; +B +is the total of all amounts, each of which is a duration +of time for which it can reasonably be expected that +the subject vessel will be used in Canada in the +course of a qualifying activity during the period that +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 146 +begins on the day after the particular day and that +ends on +(a) if it can reasonably be expected that the per- +son will transfer ownership of the subject vessel +before the day that is one year after the particular +day, the day on which it can reasonably be expect- +ed that the person will transfer ownership of the +subject vessel, and +(b) in any other case, the day that is one year after +the particular day; +C +is a prescribed amount; +D +is +(a) if the particular time is the time at which the +person acquires ownership of the subject vessel, +zero, and +(b) in any other case, the total of all amounts, +each of which is a duration of time that the subject +vessel was used in Canada during the period that +ends on the particular day and begins on the later +of +(i) the day on which the person acquired own- +ership of the subject vessel, and +(ii) the day that is one year before the particu- +lar day; +E +is the total of all amounts, each of which is a duration +of time for which it can reasonably be expected that +the subject vessel will be used in Canada during the +period that begins on the day after the particular day +and that ends on +(a) if it can reasonably be expected that the per- +son will transfer ownership of the subject vessel +before the day that is one year after the particular +day, the day on which it can reasonably be expect- +ed that the person will transfer ownership of the +subject vessel to another person, and +(b) in any other case, the day that is one year after +the particular day; and +F +is a prescribed amount. +Qualifying subject vessel — regulations +(5) For the purposes of this Act, a subject vessel is a +qualifying subject vessel of a person at any time if pre- +scribed conditions are met. +Registration of vehicle +12 (1) For the purposes of this Act, a subject vehicle is +registered with a government if it is registered with, or li- +censed by, that government for the purposes of +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 147 +permitting that subject vehicle to travel on public roads +within the jurisdiction of that government. +Registration of aircraft +(2) For the purposes of this Act, a subject aircraft is reg- +istered with a government if it is registered with, or li- +censed by, that government for the purposes of permit- +ting that subject aircraft to fly within the jurisdiction of +that government. +Registration of vessel +(3) For the purposes of this Act, a subject vessel is regis- +tered with a government if it is registered with, or li- +censed by, that government for the purposes of permit- +ting that subject vessel to navigate within the jurisdiction +of that government. +SUBDIVISION B +Consideration and Retail Value +Definitions +13 (1) The following definitions apply in this Subdivi- +sion. +money includes any currency, cheque, promissory note, +letter of credit, draft, traveller’s cheque, bill of exchange, +postal note, money order, postal remittance and other +similar instrument, whether Canadian or foreign, but +does not include currency the fair market value of which +exceeds its stated value as legal tender in the country of +issuance or currency that is supplied or held for its nu- +mismatic value. (argent) +provincial levy means +(a) a tax, duty or fee imposed under an Act of the leg- +islature of a province in respect of the supply, con- +sumption or use of property or a service, other than +(i) a tax, duty or fee that is included in the Taxes, +Duties and Fees (GST/HST) Regulations or that +would be so included if paragraph 3(b) of those +Regulations were read without reference to sub- +paragraph (iv) of that paragraph, or +(ii) a prescribed tax, duty, fee or amount; or +(b) a prescribed tax, duty or fee. (prélèvement pro- +vincial) +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 148 +supply means a provision of property or a service in any +manner, including sale, transfer, barter, exchange, li- +cence, rental, lease, gift or disposition. (fourniture) +When supply is made +(2) For the purposes of this Subdivision, a supply is +made at the time at which +(a) if the supply is a sale of a subject item, the sale is +completed; +(b) if the supply is an improvement in respect of a +subject item, the improvement is completed; +(c) if the supply is made in connection with a sale of a +subject item and is not an improvement in respect of +the subject item, the sale is completed; +(d) if the supply is made in connection with an im- +provement in respect of a subject item and is not an +improvement in respect of the subject item, the im- +provement is completed; and +(e) in any other case, the supply is made for the pur- +poses of Part IX of the Excise Tax Act. +When supply is made — regulations +(3) Despite subsection (2), for the purposes of this Sub- +division, if prescribed conditions are met in respect of a +supply, the supply is made at the prescribed time. +Value of consideration +14 (1) Subject to this Subdivision, for the purposes of +this Act, the value of the consideration, or any part of the +consideration, for a supply is deemed to be equal to +(a) if the consideration or that part is expressed in +money, the amount of the money; and +(b) in any other case, the fair market value of the con- +sideration or that part at the time at which the supply +was made. +Combined consideration +(2) Subject to subsections (3) and (4), for the purposes of +this Act, if +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 149 +(a) consideration is paid for a supply and other con- +sideration is paid for one or more other supplies or +matters, and +(b) the consideration for one of the supplies or mat- +ters exceeds the consideration that would be reason- +able if the other supply were not made or the other +matter were not provided, +the consideration for each of the supplies and matters is +deemed to be that part of the total of all amounts, each of +which is consideration for one of those supplies or mat- +ters, that may reasonably be attributed to each of those +supplies and matters. +Consideration for sale includes fees +(3) For the purposes of this Act, if consideration is paid +for the sale of a subject item and other consideration is +paid for one or more other supplies or matters (other +than an improvement in respect of the subject item) and +the other consideration represents a fee or other similar +charge in respect of the subject item or the sale, the fol- +lowing rules apply: +(a) the other supplies and matters are deemed to form +part of the sale; and +(b) the other consideration is to be included in the +consideration for the sale. +Consideration for improvement includes fees +(4) For the purposes of this Act, if consideration is paid +for an improvement in respect of a subject item and other +consideration is paid for one or more other supplies or +matters (other than a sale of the subject item) and the +other consideration represents a fee or other similar +charge in respect of the improvement, the following rules +apply: +(a) the other supplies and matters are deemed to form +part of the improvement; and +(b) the other consideration is to be included in the +consideration for the improvement. +Incidental supplies +(5) For the purposes of this Act, if a particular property +or service is supplied together with any other property or +service for a single consideration and if it may reasonably +be regarded that the provision of the other property or +service is incidental to the provision of the particular +property or service, the other property or service is +deemed to form part of the particular property or service +so supplied. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 150 +Non-arm’s length supplies +(6) For the purposes of this Act, if a supply of property or +a service is made between persons not dealing with each +other at arm’s length for consideration less than the fair +market value of the property or service at the time at +which the supply is made, the consideration paid for the +supply is deemed to be equal to the fair market value of +the property or service at that time. +Nominal consideration +(7) For the purposes of this Act, if a supply of property or +a service is made for no consideration or nominal consid- +eration, the consideration paid for the supply is deemed +to be equal to the fair market value of the property or ser- +vice at the time at which the supply is made. +Improvement by way of lease, etc. +(8) For the purposes of this Act, if an improvement in re- +spect of a subject item is provided by way of lease, licence +or similar arrangement and the improvement is the pro- +vision of tangible personal property, the consideration +paid for the improvement is deemed to be equal to the +fair market value of the improvement at the time at +which the improvement is completed. +Value in Canadian currency +(9) For the purposes of this Act, if the consideration for a +supply is expressed in a foreign currency, the value of the +consideration is to be computed on the basis of the value +of that foreign currency in Canadian currency on the day +that the supply is made, or on such other day as is accept- +able to the Minister. +Levies included in consideration +15 For the purposes of this Act, the consideration for a +supply of property or a service includes +(a) any tax, duty or fee imposed under an Act of Par- +liament that is payable or collectible in respect of the +supply, production or importation of the property or +service, other than tax under this Act or Part IX of the +Excise Tax Act that is payable in respect of the proper- +ty or service; +(b) any provincial levy that is payable or collectible in +respect of the supply or production of the property or +service; and +(c) any other amount that is collectible in respect of +the supply or production of the property or service un- +der an Act of the legislature of a province and that is +equal to, or is collectible on account of or in lieu of, a +provincial levy. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 151 +Retail value of subject item +16 For the purposes of this Act, the retail value of a sub- +ject item at any time is the amount determined by the +formula +A + B + C + D +where +A +is the fair market value of the subject item at that +time; +B +is the total of all amounts, each of which is a fee or +charge in respect of the transportation or freight of +the subject item but only to the extent that the +amount is not included in the determination of A; +C +is the total of all amounts, each of which is an +amount described in any of the following paragraphs +but only to the extent that each amount is not includ- +ed in the determination of A: +(a) a tax, duty or fee imposed under an Act of Par- +liament that is payable or collectible in respect of +a supply of the subject item or in respect of the +production or importation of the subject item, +other than tax under this Act or Part IX of the Ex- +cise Tax Act that is payable in respect of the sub- +ject item, +(b) a provincial levy that is payable or collectible +in respect of a supply of the subject item or in re- +spect of the production of the subject item, and +(c) another amount that is collectible in respect of +a supply of the subject item or in respect of the +production of the subject item under an Act of the +legislature of a province and that is equal to, or is +collectible on account of or in lieu of, a provincial +levy; and +D +is a prescribed amount. +SUBDIVISION C +Her Majesty +Her Majesty +17 This Act is binding on Her Majesty in right of Canada +or a province. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 152 +DIVISION 2 +Application of Tax +SUBDIVISION A +Tax on Sale +Tax — sale of subject item +18 (1) Subject to this Act, if a vendor sells a subject item +to a purchaser and the taxable amount of the subject item +exceeds the price threshold in respect of the subject item, +tax in respect of the subject item is payable to Her +Majesty in right of Canada in the amount determined un- +der section 34. +Liability for tax — vendor or purchaser +(2) The tax under subsection (1) in respect of a subject +item sold by a vendor to a purchaser is payable by +(a) the purchaser, in the case where the vendor is +(i) Her Majesty in right of Canada or a province, +(ii) an agent of Her Majesty in right of Canada or a +province, +(iii) an Indigenous governing body, +(iv) a person entitled to tax relief privileges under +the Foreign Missions and International Organiza- +tions Act for the tax payable under subsection +165(1) of the Excise Tax Act in respect of the sale, +or +(v) a prescribed person; and +(b) the vendor, in any other case. +When tax payable +(3) The tax under subsection (1) becomes payable at the +time at which the sale is completed. +Taxable amount +(4) Subject to subsections (5) to (7), the taxable amount +of a subject item sold by a vendor to a purchaser is, for +the purposes of this section and for the purposes of de- +termining under section 34 the amount of tax payable un- +der this section, the amount determined by the formula +A + B + C +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 153 +where +A +is the value of the consideration for the sale of the +subject item; +B +is the total of all amounts, each of which is the value +of the consideration for an improvement in respect +of the subject item that is provided by the vendor, or +a person that does not deal at arm’s length with the +vendor, in connection with the sale of the subject +item, but only to the extent that the amount is not in- +cluded in the determination of A; and +C +is a prescribed amount. +Taxable amount — lease by non-arm’s length +purchaser +(5) Subject to subsection (7), if a vendor sells a subject +item to a purchaser that does not deal at arm’s length +with the vendor, if the purchaser and another person en- +ter into a lease, licence or similar arrangement (in this +subsection referred to as the “lease agreement”) that pro- +vides the other person with the right to use the subject +item for a period of at least six months and if the lease +agreement is entered into in connection with the sale, the +taxable amount of the subject item is, for the purposes of +this section and for the purposes of determining under +section 34 the amount of tax payable under this section, +the amount determined by the formula +A + B +where +A +is the greatest of +(a) the value of the consideration for the sale, +(b) the retail value of the subject item at the time +at which the other person first has the right to use +the subject item under the lease agreement, and +(c) the retail value of the subject item at the time +at which possession of the subject item is trans- +ferred to the other person under the lease agree- +ment; and +B +is a prescribed amount. +Taxable amount — lease to vendor by purchaser +(6) Subject to subsection (7), if a vendor sells a subject +item to a purchaser, if the purchaser and the vendor en- +ter into a lease, licence or similar arrangement (in this +subsection referred to as the “lease agreement”) that pro- +vides the vendor with the right to use the subject item for +a period of at least six months and if the lease agreement +is entered into in connection with the sale, the taxable +amount of the subject item is, for the purposes of this +section and for the purposes of determining under +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 154 +section 34 the amount of tax payable under this section, +the amount determined by the formula +A + B +where +A +is the greater of +(a) the value of the consideration for the sale, and +(b) the retail value of the subject item at the time +at which the vendor first has the right to use the +subject item under the lease agreement; and +B +is a prescribed amount. +Taxable amount — regulations +(7) For the purposes of this section and for the purposes +of determining under section 34 the amount of tax +payable under this section, the taxable amount of a sub- +ject item in prescribed circumstances is to be determined +in prescribed manner. +Tax not payable — registered vendor of vehicles +19 (1) The tax under section 18 in respect of a subject +vehicle sold by a vendor to a purchaser is not payable if +an exemption certificate applies in respect of the sale of +the subject vehicle in accordance with section 36 and if +the vendor is a registered vendor in respect of subject ve- +hicles or a prescribed person. +Tax not payable — previously registered vehicle +(2) The tax under section 18 in respect of a subject vehi- +cle sold by a vendor to a purchaser is not payable if the +subject vehicle has been registered with the Government +of Canada or a province except if +(a) the subject vehicle was registered only because of +the sale and has never otherwise been registered with +the Government of Canada or a province; or +(b) the vendor +(i) is Her Majesty in right of Canada or a province, +an agent of Her Majesty in right of Canada or a +province or an Indigenous governing body, +(ii) imported the subject vehicle, and +(iii) did not pay tax under section 20 in respect of +the importation of the subject vehicle. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 155 +Tax not payable — certain vehicles +(3) The tax under section 18 in respect of a subject vehi- +cle sold by a vendor to a purchaser is not payable if +(a) the subject vehicle is equipped for policing activi- +ties and +(i) the purchaser is a police authority or a military +authority, or +(ii) it is the case that +(A) the purchaser and a police authority or mili- +tary authority enter into an agreement that is a +lease, licence or similar arrangement, +(B) the agreement is entered into at or before +the time at which the sale is completed, +(C) the police authority or military authority has +the right to use the subject vehicle for a period of +at least six months under the agreement, +(D) the purchaser transfers possession of the +subject vehicle to the police authority or military +authority under the agreement, and +(E) the purchaser provides to the vendor, and +the vendor retains, evidence satisfactory to the +Minister that the conditions in clauses (A) to (D) +are met in respect of the subject vehicle; or +(b) the subject vehicle is equipped for military activi- +ties and +(i) the purchaser is a military authority, or +(ii) it is the case that +(A) the purchaser and a military authority enter +into an agreement that is a lease, licence or simi- +lar arrangement, +(B) the agreement is entered into at or before +the time at which the sale is completed, +(C) the military authority has the right to use the +subject vehicle for a period of at least six months +under the agreement, +(D) the purchaser transfers possession of the +subject vehicle to the military authority under +the agreement, and +(E) the purchaser provides to the vendor, and +the vendor retains, evidence satisfactory to the +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 156 +Minister that the conditions in clauses (A) to (D) +are met in respect of the subject vehicle. +Exemption certificate for aircraft or vessel +(4) The tax under section 18 in respect of a subject air- +craft or subject vessel sold by a vendor to a purchaser is +not payable if an exemption certificate applies in respect +of the sale in accordance with section 36. +Tax certificate for aircraft or vessel +(5) The tax under section 18 in respect of a subject air- +craft or subject vessel sold by a vendor to a purchaser is +not payable if a tax certificate in respect of the subject +aircraft or subject vessel is in effect in accordance with +section 37 at the time at which the sale is completed. +SUBDIVISION B +Tax on Importation +Tax — importation into Canada +20 (1) Subject to this Act, a person that is liable under +the Customs Act to pay duty on an imported subject item, +or that would be so liable if the subject item were subject +to duty, must pay to Her Majesty in right of Canada tax in +respect of the subject item in the amount determined un- +der section 34 if the taxable amount of the subject item +exceeds the price threshold in respect of the subject item. +Taxable amount +(2) Subject to subsection (3), the taxable amount of a +subject item that is imported is, for the purposes of this +section and for the purposes of determining under sec- +tion 34 the amount of tax payable under this section, the +amount determined by the formula +A + B + C +where +A +is the value of the subject item, as it would be deter- +mined under the Customs Act for the purposes of +calculating duties imposed on the subject item at a +percentage rate, whether the subject item is in fact +subject to duty; +B +is the amount of all duties and taxes, if any, payable +on the subject item under the Customs Tariff, the +Excise Tax Act (other than Part IX of that Act), the +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 157 +Special Import Measures Act or any other law relat- +ing to customs; and +C +is a prescribed amount. +Taxable amount — regulations +(3) For the purposes of this section and for the purposes +of determining under section 34 the amount of tax +payable under this section, the taxable amount of a sub- +ject item in prescribed circumstances is to be determined +in prescribed manner. +Application of Customs Act +(4) Subject to this Act, tax under this section in respect +of a subject item is to be paid and collected under the +Customs Act, and interest and penalties are to be im- +posed, calculated, paid and collected under that Act, as if +the tax were a customs duty levied on the subject item +under the Customs Tariff and, for those purposes, the +Customs Act applies with any modifications that the cir- +cumstances require. +Tax not payable — registered vendor +21 (1) The tax under section 20 in respect of a subject +item that is imported is not payable if the subject item is +imported by a registered vendor in respect of that type of +subject item. +Tax not payable — previously registered vehicles +(2) The tax under section 20 in respect of a subject vehi- +cle that is imported is not payable if the subject vehicle +has been registered with the Government of Canada or a +province before the importation unless +(a) the registration was done in connection with the +importation; and +(b) the subject vehicle has never otherwise been regis- +tered with the Government of Canada or a province. +Tax not payable — certain vehicles +(3) The tax under section 20 in respect of a subject vehi- +cle that is imported is not payable if +(a) the subject vehicle is equipped for policing activi- +ties and imported by a police authority or a military +authority; or +(b) the subject vehicle is equipped for military activi- +ties and imported by a military authority. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 158 +Tax not payable — tax certificate +(4) The tax under section 20 in respect of a subject air- +craft or subject vessel is not payable if a tax certificate in +respect of the subject aircraft or subject vessel is in effect +in accordance with section 37 at the time at which the tax +would become payable in the absence of this subsection. +Tax not payable — special import certificate +(5) The tax under section 20 in respect of a subject air- +craft or subject vessel (other than a select subject vessel) +that is imported is not payable if, at the time at which the +tax would become payable in the absence of this subsec- +tion, a special import certificate in respect of the impor- +tation is in effect in accordance with section 38. +Tax not payable — special cases +(6) The tax under section 20 in respect of a subject item +that is imported is not payable if +(a) the subject item is classified under heading No. +98.01 or tariff item No. 9802.00.00 or 9803.00.00 of the +schedule to the Customs Tariff, to the extent that the +subject item is not subject to duty under that Act; +(b) the subject item is imported for the sole purpose of +maintenance, overhaul or repair of the subject item in +Canada and +(i) neither title to, nor beneficial use of, the subject +item is intended to pass, or passes, to a person in +Canada while the subject item is in Canada, and +(ii) the subject item is exported as soon after the +maintenance, overhaul or repair is completed as is +reasonable having regard to the circumstances sur- +rounding the importation and, where applicable, to +the normal business practice of the importer; +(c) it is the case that +(i) the subject item is a foreign-based conveyance, +(ii) the importation of the subject item was non- +taxable by reason of the reference to heading +No. 98.01 of the schedule to the Customs Tariff in +paragraph (a) but the subject item is diverted solely +for maintenance, overhaul or repair in Canada, +(iii) neither title to, nor beneficial use of, the sub- +ject item is intended to pass, or passes, to a person +in Canada while the subject item is in Canada, and +(iv) the subject item is exported as soon after the +maintenance, overhaul or repair is completed as is +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 159 +reasonable having regard to the circumstances sur- +rounding the importation and, where applicable, to +the normal business practice of the importer; +(d) the subject item is a subject vessel imported in cir- +cumstances where customs duties have been removed +under subsection 7(1) of the Vessel Duties Reduction +or Removal Regulations; +(e) the subject item is a subject vehicle that is import- +ed temporarily by an individual resident in Canada +and +(i) the subject item was last provided in the course +of a vehicle rental business to the individual by way +of lease, licence or similar arrangement under +which continuous possession or use of the subject +item is provided for a period of less than 180 days, +(ii) immediately before the importation, the indi- +vidual was outside Canada for an uninterrupted pe- +riod of at least 48 hours, and +(iii) the subject item is exported within 30 days af- +ter the importation; or +(f) the subject item would be classified under tariff +item No. 9802.00.00 of the schedule to the Customs +Tariff to the extent that the subject item would not be +subject to duty under that Act if the definition con- +veyance in section 2 of the Temporary Importation +of Conveyances by Residents of Canada Regulations +were read as follows: +conveyance means any vehicle, aircraft, water-borne +craft or other contrivance that is used to move persons or +goods; +Definition of determination of the tax status +22 (1) In this section, determination of the tax status +of +a +subject +item +means +a +determination, +re- +determination or further re-determination that tax under +this Subdivision is, or is not, payable in respect of the +subject item. +Application of Customs Act — determination +(2) Subject to subsections (4) to (6), the Customs Act +(other than subsections 67(2) and (3) and sections 68 and +70) and the regulations made under that Act apply, with +any modifications that the circumstances require, to the +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 160 +determination of the tax status of a subject item for the +purposes of this Subdivision as if it were the determina- +tion, re-determination or further re-determination, as +the case requires, of the tariff classification of the subject +item. +Application of Customs Act — appraisal +(3) The Customs Act and the regulations made under +that Act apply, with any modifications that the circum- +stances require, to the appraisal, re-appraisal or further +re-appraisal of the value of a subject item for the purpos- +es of this Subdivision as if it were the appraisal, re-ap- +praisal or further re-appraisal, as the case requires, of the +value for duty of the subject item. +Appeals of determination of tax status +(4) In applying the Customs Act to a determination of +the tax status of a subject item, the references in that Act +to the “Canadian International Trade Tribunal” are to be +read as references to the “Tax Court of Canada”. +Application — this Act and Tax Court of Canada Act +(5) The provisions of this Act and of the Tax Court of +Canada Act that apply to an appeal taken under section +100 apply, with any modifications that the circumstances +require, to an appeal taken under subsection 67(1) of the +Customs Act from a decision of the President of the +Canada Border Services Agency made under section 60 or +61 of the Customs Act in a determination of the tax status +of a subject item as if the decision of the President were a +confirmation of an assessment or a reassessment made +by the Minister under subsection 97(8) or (9) as a conse- +quence of a notice of objection filed under subsection +97(1) by the person to which the President is required to +give notice under section 60 or 61 of the Customs Act, as +the case may be, of the decision. +Rebate — appraisal or re-appraisal +(6) If, because of an appraisal, a re-appraisal or a further +re-appraisal of the value of a subject item or a determina- +tion of the tax status of a subject item, it is determined +that the amount that was paid as tax under this Subdivi- +sion in respect of the subject item exceeds the amount of +tax that is required under this Subdivision to be paid in +respect of the subject item and a refund of the excess +would be given under paragraph 59(3)(b) or 65(1)(b) of +the Customs Act if the tax under this Subdivision in re- +spect of the subject item were a customs duty in respect +of the subject item levied under the Customs Tariff, a re- +bate of the excess is to be paid, subject to section 46, to +the person that paid the excess, and the provisions of the +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 161 +Customs Act that relate to the payment of such refunds +and interest on such refunds apply, with any modifica- +tions that the circumstances require, as if the rebate of +the excess were a refund of duty. +Application of section 69 of Customs Act +(7) Subject to section 46, section 69 of the Customs Act +applies, with any modifications that the circumstances +require, if an appeal in respect of the value of a subject +item or a determination of the tax status of a subject item +is taken for the purpose of determining whether tax un- +der this Subdivision in respect of the subject item is +payable or of determining the amount of such tax. +SUBDIVISION C +Tax in Other Circumstances +Tax — registration of registered vendor’s vehicle +23 (1) Subject to this Act, if a registered vendor in re- +spect of subject vehicles is an owner of a subject vehicle +at a particular time, if the subject vehicle is registered at +the particular time with the Government of Canada or a +province, if the subject vehicle has never otherwise been +registered with the Government of Canada or a province +and if the taxable amount of the subject vehicle exceeds +the price threshold in respect of the subject vehicle, the +registered vendor must pay to Her Majesty in right of +Canada tax in respect of the subject vehicle in the +amount determined under section 34. +When tax payable +(2) The tax under subsection (1) becomes payable at the +particular time referred to in that subsection. +Tax not payable +(3) The tax under subsection (1) in respect of a registra- +tion of a subject vehicle owned by a registered vendor is +not payable if the registration of the subject vehicle is +done only because +(a) the subject vehicle is sold by the registered vendor +to a purchaser; or +(b) the right to use the subject vehicle is provided by +the registered vendor to a person under a lease, li- +cence or similar arrangement. +Taxable amount +(4) Subject to subsection (5), the taxable amount of a +subject vehicle that is owned by a registered vendor is, +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 162 +for the purposes of this section and for the purposes of +determining under section 34 the amount of tax payable +under this section, the amount determined by the formu- +la +A + B +where +A +is the greater of +(a) the retail value of the subject vehicle at the +time at which the subject vehicle is registered with +the Government of Canada or a province, and +(b) the retail value of the subject vehicle at the +time at which the registered vendor first uses the +subject vehicle; and +B +is a prescribed amount. +Taxable amount — regulations +(5) For the purposes of this section and for the purposes +of determining under section 34 the amount of tax +payable under this section, the taxable amount of a sub- +ject vehicle in prescribed circumstances is to be deter- +mined in prescribed manner. +Tax — lease of subject vehicle +24 (1) Subject to this Act, if a registered vendor in re- +spect of subject vehicles is an owner of a subject vehicle, +if the registered vendor provides the right to use the sub- +ject vehicle to another person under a lease, licence or +similar arrangement, if the subject vehicle has not previ- +ously been registered with the Government of Canada or +a province otherwise than in connection with the lease, +licence or similar arrangement and if the taxable amount +of the subject vehicle exceeds the price threshold in re- +spect of the subject vehicle, the registered vendor must +pay to Her Majesty in right of Canada tax in respect of +the subject vehicle in the amount determined under sec- +tion 34. +When tax payable +(2) The tax under subsection (1) becomes payable at the +time at which the other person first has the right to use +the subject item under the lease, licence or similar ar- +rangement. +Tax not payable +(3) The tax under subsection (1) in respect of a subject +vehicle that is owned by a registered vendor and in re- +spect of which the right to use the subject item is provid- +ed to another person under a lease, licence or similar ar- +rangement is not payable if +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 163 +(a) the subject vehicle is equipped for policing activi- +ties and +(i) the other person is a police authority or military +authority, +(ii) the other person has the right to use the subject +item for a period of at least six months under the +lease, licence or similar arrangement, +(iii) the registered vendor transfers possession of +the subject vehicle to the other person under the +lease, licence or similar arrangement, and +(iv) the registered vendor retains evidence satisfac- +tory to the Minister that the conditions in subpara- +graphs (i) to (iii) are met in respect of the subject +item; or +(b) the subject vehicle is equipped for military activi- +ties and +(i) the other person is a military authority, +(ii) the other person has the right to use the subject +item for a period of at least six months under the +lease, licence or similar arrangement, +(iii) the registered vendor transfers possession of +the subject vehicle to the other person under the +lease, licence or similar arrangement, and +(iv) the registered vendor retains evidence satisfac- +tory to the Minister that the conditions in subpara- +graphs (i) to (iii) are met in respect of the subject +item. +Taxable amount +(4) Subject to subsection (5), the taxable amount of a +subject vehicle that is owned by a registered vendor and +in respect of which the right to use the subject item is +provided to another person under a lease, licence or simi- +lar arrangement is, for the purposes of this section and +for the purposes of determining under section 34 the +amount of tax payable under this section, the amount de- +termined by the formula +A + B +where +A +is the greater of +(a) the retail value of the subject vehicle at the +time at which possession of the subject vehicle is +first transferred to the other person under the +lease, licence or similar arrangement, and +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 164 +(b) the retail value of the subject vehicle at the +time at which the other person first has the right +to use the subject vehicle under the lease, license +or similar arrangement; and +B +is a prescribed amount. +Taxable amount — regulations +(5) For the purposes of this section and for the purposes +of determining under section 34 the amount of tax +payable under this section, the taxable amount of a sub- +ject item in prescribed circumstances is to be determined +in prescribed manner. +Tax — lease of aircraft or vessel +25 (1) Subject to this Act, if a particular person is an +owner of a subject item that is a subject aircraft or sub- +ject vessel, if the particular person provides the right to +use the subject item to another person under a lease, li- +cence or similar arrangement and if the taxable amount +of the subject item exceeds the price threshold in respect +of the subject item, the particular person must pay to Her +Majesty in right of Canada tax in respect of the subject +item in the amount determined under section 34. +When tax payable +(2) The tax under subsection (1) becomes payable at the +time at which the other person first has the right to use +the subject item under the lease, licence or similar ar- +rangement. +Tax not payable +(3) The tax under subsection (1) in respect of a subject +item that is owned by a particular person and in respect +of which the right to use the subject item is provided to +another person under a lease, licence or similar arrange- +ment is not payable if, at the time at which the other per- +son first has the right to use the subject item under a +lease, licence or similar arrangement +(a) in the case of a subject vessel (other than a select +subject vessel), the subject item is a qualifying subject +vessel of the particular person; +(b) in the case of a subject aircraft, +(i) the subject item is a qualifying subject aircraft of +the particular person, +(ii) each person that is an owner of the subject item +is a qualifying aircraft user, or +(iii) the other person is a qualifying aircraft user; or +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 165 +(c) a tax certificate in respect of the subject item is in +effect in accordance with section 37. +Taxable amount +(4) Subject to subsection (5), the taxable amount of a +subject item that is owned by a particular person and in +respect of which the right to use the subject item is pro- +vided to another person under a lease, licence or similar +arrangement is, for the purposes of this section and for +the purposes of determining under section 34 the amount +of tax payable under this section, the amount determined +by the formula +A + B +where +A +is the greater of +(a) the retail value of the subject item at the time +at which possession of the subject item is first +transferred to the other person under the lease, li- +cence or similar arrangement, and +(b) the retail value of the subject item at the time +at which the other person first has the right to use +the subject item under the lease, license or similar +arrangement; and +B +is a prescribed amount. +Taxable amount — regulations +(5) For the purposes of this section and for the purposes +of determining under section 34 the amount of tax +payable under this section, the taxable amount of a sub- +ject item in prescribed circumstances is to be determined +in prescribed manner. +Tax — use of aircraft or vessel +26 (1) Subject to this Act, if a person is an owner at a +particular time of a subject item that is a subject aircraft +or subject vessel, if the subject item is used in Canada at +the particular time and if the taxable amount of the sub- +ject item exceeds the price threshold in respect of the +subject item, the person must pay to Her Majesty in right +of Canada tax in respect of the subject item in the +amount determined under section 34. +When tax payable +(2) The tax under subsection (1) becomes payable at the +particular time referred to in that subsection. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 166 +Tax not payable +(3) The tax under subsection (1) in respect of a subject +item that is used in Canada by a person at a particular +time is not payable if +(a) in the case of a subject vessel (other than a select +subject vessel), the subject item is a qualifying subject +vessel of the person at the particular time; +(b) the person is a registered vendor in respect of that +type of subject item and the use of the subject item by +the person is reasonably necessary or incidental to the +manufacture, offering for sale or transportation of the +subject item; +(c) in the case of a subject aircraft, at the particular +time +(i) the subject item is a qualifying subject aircraft, +or +(ii) each person that is an owner of the subject air- +craft is a qualifying aircraft user; +(d) a tax certificate in respect of the subject item is in +effect at the particular time in accordance with sec- +tion 37; +(e) the person imported the subject item before the +particular time and tax under section 20 in respect of +the importation was not payable by the person be- +cause of the application of subsection 21(6); or +(f) tax in respect of the subject item became payable +under section 27 or 28 by the person at or before the +particular time. +Taxable amount +(4) Subject to subsection (5), the taxable amount of a +subject item that is used in Canada at a particular time is, +for the purposes of this section and for the purposes of +determining under section 34 the amount of tax payable +under this section, the amount determined by the formu- +la +A + B +where +A +is the retail value of the subject item at the particular +time; and +B +is a prescribed amount. +Taxable amount — regulations +(5) For the purposes of this section and for the purposes +of determining under section 34 the amount of tax +payable under this section, the taxable amount of a +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 167 +subject item in prescribed circumstances is to be deter- +mined in prescribed manner. +Tax — ceasing to be registered vendor +27 (1) Subject to this Act, if a person ceases to be a reg- +istered vendor in respect of a type of subject item at a +particular time, if the person is an owner of a subject +item of that type at the particular time and if the taxable +amount of the subject item exceeds the price threshold in +respect of the subject item, the person must pay to Her +Majesty in right of Canada tax in respect of the subject +item in the amount determined under section 34. +When tax payable +(2) The tax under subsection (1) becomes payable at the +particular time referred to in that subsection. +Tax not payable +(3) The tax under subsection (1) in respect of a subject +item that is owned by a person at the particular time at +which the person ceases to be a registered vendor in re- +spect of that type of subject item is not payable if +(a) in the case of a subject vehicle, the subject item +was registered with the Government of Canada or a +province before the particular time; +(b) in the case of a subject aircraft, +(i) if the person is the only owner of the subject air- +craft, the person is a qualifying aircraft user at the +particular time, and +(ii) in any other case, each person that is an owner +of the subject aircraft is a qualifying aircraft user at +the particular time; +(c) in the case of a subject aircraft or subject vessel +(other than a select subject vessel), the subject item is +a qualifying subject aircraft or qualifying subject ves- +sel of the person at the particular time; or +(d) in the case of a subject aircraft or subject vessel, a +tax certificate in respect of the subject item is in effect +at the particular time in accordance with section 37. +Taxable amount +(4) Subject to subsection (5), the taxable amount of a +subject item owned by a person is, for the purposes of +this section and for the purposes of determining under +section 34 the amount of tax payable under this section, +the amount determined by the formula +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 168 +A + B +where +A +is the retail value of the subject item at the time at +which the person ceases to be a registered vendor in +respect of that type of subject item; and +B +is a prescribed amount. +Taxable amount — regulations +(5) For the purposes of this section and for the purposes +of determining under section 34 the amount of tax +payable under this section, the taxable amount of a sub- +ject item in prescribed circumstances is to be determined +in prescribed manner. +Tax — ceasing to be qualifying aircraft user +28 (1) Subject to this Act, if a person ceases to be a qual- +ifying aircraft user at a particular time, if the person is an +owner of a subject aircraft at the particular time and if +the taxable amount of the subject aircraft exceeds the +price threshold in respect of the subject aircraft, the per- +son must pay to Her Majesty in right of Canada tax in re- +spect of the subject aircraft in the amount determined +under section 34. +When tax payable +(2) The tax under subsection (1) becomes payable at the +particular time referred to in that subsection. +Tax not payable +(3) The tax under subsection (1) in respect of a subject +aircraft that is owned by a person at the particular time +at which the person ceases to be a qualifying aircraft user +is not payable if +(a) the subject aircraft is a qualifying subject aircraft +of the person at the particular time; or +(b) a tax certificate in respect of the subject aircraft is +in effect at the particular time in accordance with sec- +tion 37. +Taxable amount +(4) Subject to subsection (5), the taxable amount of a +subject aircraft owned by a person is, for the purposes of +this section and for the purposes of determining under +section 34 the amount of tax payable under this section, +the amount determined by the formula +A + B +where +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 169 +A +is the retail value of the subject aircraft at the time at +which the person ceases to be a qualifying aircraft +user; and +B +is a prescribed amount. +Taxable amount — regulations +(5) For the purposes of this section and for the purposes +of determining under section 34 the amount of tax +payable under this section, the taxable amount of a sub- +ject item in prescribed circumstances is to be determined +in prescribed manner. +SUBDIVISION D +Tax on Improvements +Rules — improvement after sale +29 (1) Subject to section 31, for the purposes of this sec- +tion and for the purposes of determining under section +35 the amount of tax payable under this section, if a ven- +dor sells a subject item to a particular purchaser, the fol- +lowing rules apply: +(a) the improvement period in respect of the subject +item is the period that begins on the day that an agree- +ment for the sale is entered into and ends on +(i) if the subject item is subsequently sold to a per- +son that deals at arm’s length with the particular +purchaser and if the sale to the person is completed +on a particular day that is before the day that is one +year after the day on which the sale to the particu- +lar purchaser is completed, the particular day, and +(ii) in any other case, the day that is one year after +the day on which the sale to the particular purchas- +er is completed; +(b) the unimproved taxable amount of the subject +item is equal to the taxable amount of the subject item +as determined under section 18 in respect of the sale +to the particular purchaser; and +(c) the net improvement amount of the subject item is +equal to the total of all amounts, each of which is the +value of the consideration for an improvement in re- +spect of the subject item that is completed at any time +during the improvement period in respect of the sub- +ject item but only to the extent that the value of the +consideration is not included in the determination of +the unimproved taxable amount of the subject item. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 170 +Tax — improvement after sale +(2) Subject to this Act, a person must pay to Her Majesty +in right of Canada tax in respect of a subject item in the +amount determined under section 35 if +(a) a vendor sells the subject item to the person and +tax in respect of the subject item becomes payable un- +der section 18; and +(b) the net improvement amount of the subject item is +greater than or equal to $5,000. +When tax payable +(3) The tax under subsection (2) in respect of a subject +item becomes payable at the beginning of the day follow- +ing the day on which the improvement period in respect +of the subject item ends. +Rules — improvement in other circumstances +30 (1) Subject to section 31, for the purposes of this sec- +tion and for the purposes of determining under section +35 the amount of tax payable under this section, if tax in +respect of a subject item becomes payable by a person on +a particular day under any of sections 20 and 23 to 28, the +following rules apply: +(a) the improvement period in respect of the subject +item is the period that begins on the particular day +and ends on +(i) if the subject item is subsequently sold to anoth- +er person that deals at arm’s length with the person +and the sale is completed before the day that is one +year after the particular day, the day on which the +sale is completed, and +(ii) in any other case, the day that is one year after +the particular day; +(b) the unimproved taxable amount of the subject +item is equal to the taxable amount of the subject item +as determined under whichever of those sections is +applicable; and +(c) the net improvement amount of the subject item is +equal to the total of all amounts, each of which is the +value of the consideration for an improvement in re- +spect of the subject item that is completed at any time +during the improvement period in respect of the sub- +ject item but only to the extent that the value of the +consideration is not included in the determination of +the unimproved taxable amount of the subject item. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 171 +Tax — improvement in other circumstances +(2) Subject to this Act, a person must pay to Her Majesty +in right of Canada tax in respect of a subject item in the +amount determined under section 35 if +(a) tax in respect of the subject item becomes payable +on a particular day by the person under any of sections +20 and 23 to 28; and +(b) the net improvement amount of the subject item is +greater than or equal to $5,000. +When tax payable +(3) The tax under subsection (2) in respect of a subject +item becomes payable at the beginning of the day follow- +ing the day on which the improvement period in respect +of the subject item ends. +Improvement period — regulations +31 (1) For the purposes of this Subdivision, if prescribed +circumstances exist, the improvement period in respect +of a subject item is a prescribed period. +Unimproved taxable amount — regulations +(2) For the purposes of this Subdivision and for the pur- +poses of determining under section 35 the amount of tax +payable under this Subdivision in respect of a subject +item, if prescribed circumstances exist, the unimproved +taxable amount of the subject item is to be determined in +prescribed manner. +Net improvement amount — regulations +(3) For the purposes of this Subdivision and for the pur- +poses of determining under section 35 the amount of tax +payable under this Subdivision in respect of a subject +item, if prescribed circumstances exist, the net improve- +ment amount of the subject item is to be determined in +prescribed manner. +Non-arm’s length — joint and several, or solidary, +liability +32 If tax in respect of a subject item is payable by a par- +ticular person under section 29 or 30 and if ownership of +the subject item is transferred at any time during the im- +provement period in respect of the subject item to anoth- +er person that is not dealing at arm’s length with the par- +ticular person, the other person is jointly and severally, +or solidarily, liable with the particular person for the pay- +ment of the tax. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 172 +SUBDIVISION E +General Rules +Tax not payable — regulations +33 Tax under this Act in respect of a subject item is not +payable if prescribed circumstances exist. +Amount of tax — general +34 The amount of tax payable under this Division (other +than Subdivision D) in respect of a subject item is equal +to the lesser of +(a) the amount determined by the formula +A × B +where +A +is the taxable amount of the subject item, and +B +is 10%, and +(b) the amount determined by the formula +(C − D) × E +where +C +is the taxable amount of the subject item, +D +is the price threshold in respect of the subject +item, and +E +is 20%. +Amount of tax — improvement +35 The amount of tax payable under Subdivision D in re- +spect of a subject item is equal to the amount determined +by the formula +(A − B) + C +where +A +is the amount that would be the amount of tax +payable in respect of the subject item if that amount +of tax were determined under section 34 and the tax- +able amount of the subject item were equal to the to- +tal of the unimproved taxable amount of the subject +item and the net improvement amount of the subject +item; +B +is the amount that would be the amount of tax +payable in respect of the subject item if that amount +of tax were determined under section 34 and the tax- +able amount of the subject item were equal to the +unimproved taxable amount of the subject item; and +C +is a prescribed amount. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 173 +DIVISION 3 +Certificates +Exemption certificate +36 (1) For the purposes of this Act, an exemption certifi- +cate applies in respect of the sale of a subject item by a +vendor to a purchaser only if +(a) the certificate is made in prescribed form contain- +ing prescribed information; +(b) the certificate includes +(i) the identification number of the subject item, +(ii) one of the following declarations by the pur- +chaser: +(A) a declaration that the purchaser is a regis- +tered vendor in respect of that type of subject +item at the time at which the sale is completed, +(B) in the case of a subject aircraft, a declaration +that the purchaser is a qualifying aircraft user at +the time at which the sale is completed, +(C) in the case of a subject aircraft, a declaration +that the subject item is, at the time at which +ownership of the subject item is transferred to +the purchaser, a qualifying subject aircraft of the +purchaser, or +(D) in the case of a subject vessel (other than a +select subject vessel), a declaration that the sub- +ject item is, at the time at which ownership of +the subject item is transferred to the purchaser, +a qualifying subject vessel of the purchaser, +(iii) if the certificate includes the declaration in +clause (ii)(A), the registration number assigned to +the purchaser under subsection 51(2), and +(iv) an acknowledgement by the purchaser that the +purchaser is assuming liability to pay any amount +of tax in respect of the subject item that is or may +become payable by the purchaser under this Act; +(c) the purchaser provides, in a manner satisfactory to +the Minister, the certificate in respect of the sale to the +vendor; and +(d) the vendor retains the certificate. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 174 +Exemption certificate — multiple purchasers +(2) For the purposes of this Act, if a subject item is sold +by a vendor to more than one purchaser, an exemption +certificate applies in respect of the sale of the subject +item only if +(a) in the absence of this subsection, an exemption +certificate would apply in respect of each purchaser in +accordance with subsection (1); and +(b) the declaration that is made by each purchaser un- +der subparagraph (1)(b)(ii) is made under the same +clause of that subparagraph. +Exemption certificate — regulations +(3) Despite subsections (1) and (2), for the purposes of +this Act, if prescribed circumstances exist, an exemption +certificate applies in respect of a sale of a subject item. +Tax certificate +37 (1) A person must send to the Minister an applica- +tion for a tax certificate in respect of a subject item that is +a subject aircraft or subject vessel if +(a) tax in respect of the subject item became payable +by the person on a particular day; +(b) it is the case that +(i) if the tax became payable under section 20, the +tax was paid in accordance with that section, and +(ii) in any other case, the person has filed with the +Minister the return for the reporting period that in- +cludes the particular day and the person has taken +into account the tax in determining the net tax for +that reporting period; +(c) in the case where a rebate is or was available in re- +spect of the subject item under Division 4, the amount +of the rebate is less than the amount of the tax; and +(d) prescribed conditions, if any, are met. +Content of application +(2) An application under subsection (1) in respect of a +subject item must +(a) include the identification number of the subject +item; +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 175 +(b) specify the date on which the tax in respect of the +subject item became payable; +(c) include evidence satisfactory to the Minister that +the conditions described in subparagraph (1)(b)(i) or +(ii), as the case may be, are met; and +(d) be made in prescribed form containing prescribed +information. +Timing of application +(3) An application under subsection (1) in respect of a +subject item must be filed with the Minister in prescribed +manner on or before +(a) the particular day that is one year after the day on +which the tax in respect of the subject item became +payable; or +(b) any day after the particular day that the Minister +may allow. +Issuance of tax certificate +(4) Upon receipt of an application under subsection (1) +in respect of a subject item, the Minister must consider, +with all due dispatch, the application and, if the Minister +is satisfied that the conditions described in that subsec- +tion are met in respect of the subject item, issue a tax cer- +tificate in respect of the subject item specifying +(a) the identification number of the subject item; +(b) the date on which the tax certificate came into ef- +fect; and +(c) any other information that is prescribed by regula- +tion. +Tax certificate — in effect +(5) For the purposes of this Act, a tax certificate in re- +spect of a subject item that is issued under subsection (4) +is deemed to be in effect beginning immediately after the +time at which the tax in respect of the subject item be- +came payable. +Existing certificate +(6) The Minister must not issue a tax certificate in re- +spect of a subject item if another tax certificate has previ- +ously been issued in respect of the subject item under +subsection (4) and the other tax certificate has not been +revoked under subsection (10). +Statement to applicant +(7) After considering an application under subsection (1) +in respect of a subject item, the Minister must send, or +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 176 +make available in electronic format, to the applicant a +statement specifying whether or not a tax certificate was +issued under subsection (4) in respect of the subject item +and +(a) if a tax certificate in respect of the subject item was +issued because of the application, the Minister must +send, or make available in electronic format, to the ap- +plicant with the statement a copy of, or the informa- +tion included on, the tax certificate; or +(b) if the Minister does not issue a tax certificate be- +cause there exists a previously issued tax certificate in +respect of the subject item that has not been revoked +under subsection (10), the Minister must send, or +make available in electronic format, to the applicant +with the statement a copy of, or the information in- +cluded on, the previously issued tax certificate. +Request by third party +(8) On request made by a person to the Minister in pre- +scribed manner, the Minister must send, or make avail- +able in electronic format, to the person +(a) a statement specifying +(i) whether a tax certificate in respect of a subject +item has been issued under subsection (4), and +(ii) if a tax certificate in respect of the subject item +has been issued under subsection (4), whether a no- +tice of revocation in respect of the tax certificate has +been issued under subsection (10); +(b) if a tax certificate in respect of the subject item has +been issued under subsection (4), a copy of, or the in- +formation included on, the tax certificate; and +(c) if a notice of revocation in respect of a tax certifi- +cate in respect of the subject item has been issued un- +der subsection (10), a copy of, or the information in- +cluded on, the notice of revocation. +Notification of change +(9) If a tax certificate in respect of a subject item was is- +sued under subsection (4), if the tax certificate has not +been revoked under subsection (10) and if the person +that applied for the tax certificate under subsection (1) +becomes aware at any time that the conditions described +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 177 +in subsection (1) are not met in respect of the subject +item, the person must without delay provide notice in +writing to the Minister that the conditions in subsection +(1) are not met. +Revocation +(10) If a tax certificate has been issued in respect of a +subject item under subsection (4) and the tax certificate +has not already been revoked under this subsection and +the Minister becomes aware that the conditions de- +scribed in subsection (1) are not met in respect of the +subject item, the Minister must with all due dispatch +(a) revoke the tax certificate; and +(b) issue a notice of revocation in respect of the tax +certificate specifying +(i) the identification number of the subject item, +(ii) the effective date of the revocation, and +(iii) any information that is prescribed by regula- +tion. +Revocation — timing +(11) For the purposes of this Act, a tax certificate issued +under subsection (4) that has been revoked under sub- +section (10) is deemed never to have been in effect on any +day on or after the effective day specified in the notice of +revocation. +Application for special import certificate +38 (1) A person that intends to import a subject item +that is a subject aircraft or subject vessel (other than a se- +lect subject vessel) may apply to the Minister for a special +import certificate in respect of the importation of the +subject item if +(a) at the time at which the subject item is accounted +for in accordance with section 32 of the Customs Act, +the person is an owner of the subject item and +(i) the subject item is a qualifying subject aircraft or +qualifying subject vessel of the person, or +(ii) in the case of a subject aircraft, the subject item +is accounted for in accordance with section 32 of +the Customs Act solely by the person and +(A) if the person is the only owner of the subject +aircraft, the person is a qualifying aircraft user, +and +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 178 +(B) in any other case, each person that is an +owner of the subject aircraft is a qualifying air- +craft user; or +(b) prescribed conditions are met. +Content of application +(2) An application made by a person in respect of a sub- +ject item under subsection (1) must +(a) include a declaration by the person specifying +which of the conditions described in paragraph (1)(a) +or (b) are met in respect of the subject item; +(b) include the identification number of the subject +item; +(c) include the person’s name; +(d) be made in prescribed form containing prescribed +information; and +(e) be filed with the Minister in prescribed manner. +Issuance of special import certificate +(3) Upon receipt of an application made by a person in +respect of a subject item under subsection (1), the Minis- +ter must, with all due dispatch, consider the application +and, if the Minister is satisfied that the conditions in re- +spect of the subject item described in that subsection are +met, issue and send to the person a special import certifi- +cate in respect of the importation of the subject item by +the person specifying +(a) the name of the person; +(b) the identification number of the subject item; +(c) the date on which the special import certificate is +issued; and +(d) any other information that is prescribed by regula- +tion. +Special import certificate — in effect +(4) For the purposes of this Act, a special import certifi- +cate that is issued under subsection (3) in respect of the +importation of a subject item is deemed to be in effect be- +ginning on the day on which the special import certificate +is issued. +Notice of non-issuance +(5) If, after considering an application made by a person +in respect of a subject item under subsection (1), the +Minister does not issue to the person a special import +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 179 +certificate in respect of the importation of the subject +item by the person, the Minister must send a notice to +the person specifying that a special import certificate was +not issued. +Notification of change +(6) If a special import certificate in respect of the impor- +tation of a subject item was issued to a person under sub- +section (3), if the special import certificate has not been +revoked under subsection (7) and if the person becomes +aware that the conditions described in subsection (1) are +not met in respect of the subject item, the person must +without delay provide notice in writing to the Minister +that the conditions in subsection (1) are not met. +Revocation +(7) If a special import certificate in respect of the impor- +tation of a subject item was issued to a person under sub- +section (3), if the special import certificate has not al- +ready been revoked under this subsection and if the Min- +ister becomes aware that the conditions described in sub- +section (1) are not met in respect of the subject item, the +Minister must with all due dispatch +(a) revoke the special import certificate; and +(b) issue, and send to the person, a notice of revoca- +tion in respect of the special import certificate specify- +ing +(i) the identification number of the subject item, +(ii) the effective date of the revocation, and +(iii) any information that is prescribed by regula- +tion. +Revocation — in effect +(8) For the purposes of this Act, a special import certifi- +cate issued under subsection (3) that has been revoked +under subsection (7) is deemed to cease to have effect on +the effective day specified in the notice of revocation. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 180 +DIVISION 4 +Rebates +SUBDIVISION A +Rebates to Net Tax +Rebate to net tax — export +39 (1) If the sale of a subject item to a purchaser by a +vendor is completed at a particular time and the purchas- +er exports the subject item at a later time, the Minister +must pay to the vendor a rebate in respect of the report- +ing period of the vendor that includes the later time if +(a) the following conditions are met: +(i) the vendor is a registered vendor in respect of +that type of subject item at the particular time, +(ii) the purchaser is not, at any time during the pe- +riod beginning at the particular time and ending at +the later time, a registered vendor in respect of that +type of subject item, +(iii) tax under section 18 in respect of the sale of the +subject item becomes payable by the vendor at the +particular time and the tax is taken into account in +the determination of the net tax for the reporting +period of the vendor that includes the particular +time, +(iv) the subject item is not used in Canada at any +time before the later time except to the extent rea- +sonably necessary or incidental to its manufacture, +offering for sale, transportation or exportation, +(v) the subject item is not registered with the Gov- +ernment of Canada or a province before the later +time except if the registration is done solely for a +purpose incidental to its manufacture, offering for +sale, transportation or exportation, +(vi) the purchaser exports the subject item as soon +after the sale is completed as is reasonable having +regard to the circumstances surrounding the expor- +tation, the sale and, if applicable, the normal busi- +ness practice of the purchaser and vendor, and +(vii) the purchaser provides to the vendor, and the +vendor retains, evidence satisfactory to the Minister +of the exportation of the subject item by the pur- +chaser; or +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 181 +(b) prescribed conditions are met. +Amount of rebate +(2) The amount of a rebate under subsection (1) in re- +spect of a sale of a subject item is equal to the amount of +the tax in respect of the sale referred to in subparagraph +(1)(a)(iii). +Rebate to net tax — regulations +40 The Minister must pay a rebate in respect of a subject +item to a prescribed person in the amount determined in +prescribed manner if prescribed circumstances exist. +Application for rebate to net tax +41 Despite any other provision of this Act, a rebate un- +der this Subdivision in respect of a particular reporting +period of a person is not to be paid unless an application +for the rebate +(a) is made in prescribed form containing prescribed +information; and +(b) is filed with the Minister in prescribed manner +(i) on or before the day on or before which the re- +turn under section 55 is required to be filed for the +last reporting period of the person that ends within +two years after the end of the particular reporting +period, and +(ii) with the return in respect of the reporting peri- +od in which the amount of the rebate is taken into +account in determining the net tax for the reporting +period. +SUBDIVISION B +Other Rebates +Rebate — foreign representative +42 (1) The Minister must pay to a person a rebate in re- +spect of a sale of a subject item from a vendor to the per- +son if +(a) tax under section 18 is payable by the vendor in re- +spect of the sale of the subject item and the tax is tak- +en into account in the determination of the net tax for +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 182 +the reporting period of the vendor that includes the +time at which the sale is completed; and +(b) the person is entitled to tax relief privileges under +the Foreign Missions and International Organiza- +tions Act for the tax payable under subsection 165(1) +of the Excise Tax Act in respect of the sale. +Amount of rebate +(2) The amount of a rebate payable under subsection (1) +in respect of a sale of a subject item is equal to the +amount of the tax in respect of the sale referred to in +paragraph (1)(a). +Application for rebate +(3) Despite any other provision of this Act, a rebate un- +der this section is not to be paid unless an application for +the rebate is +(a) made in prescribed form containing prescribed in- +formation; and +(b) filed with the Minister in prescribed manner with- +in two years after the day on which the sale is complet- +ed. +Rebate — payment in error +43 (1) The Minister must pay a rebate to a person if the +person paid an amount in excess of the amount that was +payable by the person under this Act whether the amount +was paid by mistake or otherwise. +Amount of rebate +(2) The amount of a rebate payable under subsection (1) +by the Minister is the amount of the excess referred to in +that subsection. +Restriction on rebate +(3) A rebate under this section in respect of an amount is +not to be paid to a person to the extent that +(a) the amount was taken into account as an amount +required to be paid by the person in respect of a re- +porting period of the person and the Minister has as- +sessed the person for that period under section 92; or +(b) the amount was an amount assessed under sec- +tion 92. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 183 +Application for rebate +(4) Despite any other provision of this Act, a rebate un- +der this section is not to be paid unless an application for +the rebate is +(a) made in prescribed form containing prescribed in- +formation; and +(b) filed with the Minister in prescribed manner with- +in two years after the earlier of the day that the +amount was taken into account in determining the net +tax for a reporting period of the person and the day +that the amount was paid to the Receiver General. +One application per quarter +(5) Not more than one application for a rebate under this +section may be made by a person in a calendar quarter. +Rebate — regulations +44 The Minister must pay a rebate in respect of a subject +item to a prescribed person in the amount determined in +prescribed manner if prescribed circumstances exist. +Restriction on rebate +45 A rebate under this Subdivision is not to be paid to a +person at any time unless all returns of which the Minis- +ter has knowledge and that are required to be filed at or +before that time by the person under this Act, the Excise +Tax Act, the Income Tax Act, the Air Travellers Security +Charge Act, the Excise Act, 2001 and Part 1 of the Green- +house Gas Pollution Pricing Act have been filed with the +Minister. +SUBDIVISION C +General Rules for Rebates +Restriction on rebate +46 A rebate of an amount is not to be paid to a person +under this Division +(a) to the extent that it can reasonably be regarded +that the person has obtained or is entitled to obtain a +rebate, refund or remission of the amount under any +other Division of this Act or under any other Act of +Parliament; or +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 184 +(b) if prescribed circumstances exist. +Single application +47 Only one application may be made under this Divi- +sion for a rebate with respect to any matter. +Restriction — bankruptcy +48 If a trustee is appointed under the Bankruptcy and +Insolvency Act to act in the administration of the estate +or succession of a bankrupt, a rebate under this Division +that the bankrupt was entitled to claim before the ap- +pointment must not be paid after the appointment unless +all returns required to be filed in respect of the bankrupt +under this Act, the Excise Tax Act, the Income Tax Act, +the Air Travellers Security Charge Act, the Excise Act, +2001 and Part 1 of the Greenhouse Gas Pollution Pricing +Act in respect of periods ending before the appointment +have been filed and all amounts required under this Act, +the Excise Tax Act, the Income Tax Act, the Air Trav- +ellers Security Charge Act, the Excise Act, 2001 and Part +1 of the Greenhouse Gas Pollution Pricing Act to be paid +by the bankrupt in respect of those periods have been +paid. +Statutory recovery rights +49 Except as specifically provided under this Act, the Fi- +nancial Administration Act or the Customs Act, no per- +son has a right to recover any money paid to Her Majesty +in right of Canada as or on account of, or that has been +taken into account by Her Majesty in right of Canada as, +an amount payable under this Act. +DIVISION 5 +Registration, Reporting Periods, +Returns and Requirement to Pay +Qualifying sale +50 (1) For the purposes of this section, a person makes a +qualifying sale of a subject item if +(a) the person sells the subject item to a purchaser; +(b) the subject item +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 185 +(i) in the case of a subject vehicle, has never been +registered with the Government of Canada or a +province other than a registration that is done only +because of the sale, and +(ii) in the case of a subject aircraft or subject vessel, +has never been registered with the Government of +Canada other than a registration that is done solely +for a purpose incidental to its manufacture, offering +for sale or transportation; and +(c) the price threshold in respect of the subject item is +less than the greatest of +(i) the consideration for the sale, +(ii) the retail value of the subject item at the partic- +ular time at which the sale is completed, and +(iii) if the subject item has a manufacturer’s sug- +gested retail price, the amount that would be the re- +tail value of the subject item at the particular time if +the fair market value of the subject item at the par- +ticular time were equal to the manufacturer’s sug- +gested retail price of the subject item. +Qualifying importation +(2) For the purposes of this section, a person makes a +qualifying importation of a subject item if +(a) the person imports the subject item; +(b) the subject item +(i) in the case of a subject vehicle, has never been +registered with the Government of Canada or a +province other than a registration that is done only +because of the importation, and +(ii) in the case of a subject aircraft or subject vessel, +has never been registered with the Government of +Canada other than a registration that is done solely +for a purpose incidental to its manufacture, offering +for sale or transportation; and +(c) the price threshold in respect of the subject item is +exceeded by the greatest of +(i) the taxable amount of the subject item deter- +mined under section 20 in respect of the importa- +tion, +(ii) the retail value of the subject item at the partic- +ular time at which the subject item is accounted for +in accordance with section 32 of the Customs Act in +respect of the importation, and +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 186 +(iii) if the subject item has a manufacturer’s sug- +gested retail price, the amount that would be the re- +tail value of the subject item at the particular time if +the fair market value of the subject item at the par- +ticular time were equal to the manufacturer’s sug- +gested retail price of the subject item. +Registration required +(3) For the purposes of this Act, a person is required to +be registered as a vendor in respect of a type of subject +item if the person +(a) makes a qualifying sale, or a qualifying importa- +tion, of a subject item of that type in the course of a +business of offering for sale in Canada subject items of +that type that +(i) in the case of subject vehicles, have never been +registered with the Government of Canada or a +province, and +(ii) in the case of subject aircraft and subject ves- +sels, have never been registered with the Govern- +ment of Canada other than registrations that are +done solely for a purpose incidental to the manu- +facture, offering for sale or transportation of the +subject items; or +(b) is a prescribed person. +Timing of application +(4) A person that is required under subsection (3) to be +registered as a vendor in respect of a type of subject item +must apply to the Minister for registration on or before +the earlier of +(a) the day on which the first qualifying sale of a sub- +ject item of that type made by the person is completed, +(b) the day on which, for the first qualifying importa- +tion of a subject item of that type made by the person, +the subject item is accounted for in accordance with +section 32 of the Customs Act, or +(c) if prescribed conditions are met, the prescribed +day. +Registration permitted +(5) For the purposes of this Act, a person that is not re- +quired under this section to be registered as a vendor in +respect of a type of subject item may apply to the +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 187 +Minister to be registered as a vendor in respect of that +type of subject item if the person is a prescribed person. +Registration not required +(6) Despite subsection (3), a person is not required to be +registered as a vendor in respect of a type of subject item +for the purposes of this Act if the person is a prescribed +person. +Application for registration +51 (1) An application for registration under this Divi- +sion is to be made in prescribed form containing pre- +scribed information and is to be filed with the Minister in +prescribed manner. +Notification of registration +(2) If a person that meets the requirements for registra- +tion under this Division applies for registration, the Min- +ister may register the person and, upon doing so, the +Minister must assign a registration number to the person +for the purposes of this Act and notify the person of the +registration number and of the effective date of the regis- +tration. +Notice of intent — failure to apply +(3) If the Minister has reason to believe that a person is +not registered as a vendor in respect of a type of subject +item for the purposes of this Act, is required to be so reg- +istered under this Division and has failed to apply for +registration under this Division as and when required, +the Minister may send a notice in writing (in this section +referred to as a “notice of intent”) to the person that the +Minister proposes to so register the person under subsec- +tion (5). +Representations to Minister +(4) Upon receipt of a notice of intent, a person must ap- +ply for the registration under this Division proposed in +the notice or establish to the satisfaction of the Minister +that the person is not required to be so registered. +Registration by Minister +(5) If, after 60 days after the particular day on which a +notice of intent was sent by the Minister to a person, the +person has not applied under this Division for the regis- +tration in respect of a type of subject item proposed in +the notice and the Minister is not satisfied that the per- +son is not required to be so registered, the Minister may +register the person as a vendor in respect of that type of +subject item under this Division and, upon doing so, +must assign a registration number to the person for the +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 188 +purposes of this Act and notify the person of the registra- +tion number and of the effective date of the registration. +Cancellation of registration +52 (1) The Minister may, after giving a person that is +registered under this Division reasonable written notice, +cancel a registration of the person as a vendor in respect +of a type of subject item under this Division if the Minis- +ter is satisfied that the registration is not required for the +purposes of this Act. +Request for cancellation +(2) If a person files with the Minister in prescribed man- +ner a request, in prescribed form containing prescribed +information, to have a registration of the person as a ven- +dor in respect of a type of subject item cancelled, the +Minister must cancel the registration of the person if the +Minister is satisfied that the registration is not required +for the purposes of this Act. +Cancellation in prescribed circumstances +(3) The Minister must cancel a registration of a person as +a vendor in respect of a type of subject item under this +Division in prescribed circumstances. +Notice of cancellation +(4) If the Minister cancels a registration of a person un- +der this Division, the Minister must notify the person of +the cancellation and the effective date of the cancellation. +Security — registration +53 (1) For the purposes of this Act, the Minister may re- +quire a person that applies to be registered, or that is re- +quired to be registered, under this Division to give and +maintain security, in an amount determined by the Min- +ister and subject to any terms and conditions that the +Minister may specify, for the payment of any amount that +is or may become payable by the person under this Act. +Security — importation +(2) For the purposes of this Act, the Minister may re- +quire a person referred to in subsection 20(1) to give and +maintain security, in an amount determined by the Min- +ister and subject to any terms and conditions that the +Minister may specify, for the payment of any amount that +is or may become payable by the person under this Act, if +the provisions of the Customs Act, the Customs Tariff or +any other laws relating to customs under which security +may be required do not apply to the payment of that +amount. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 189 +Failure to comply +(3) If, at any time, a person referred to in subsection (1) +or (2) fails to give or maintain security in an amount sat- +isfactory to the Minister, the Minister may retain as secu- +rity, out of any amount that may be or may become +payable to the person under this Act, the Excise Tax Act, +the Excise Act, 2001 or Part 1 of the Greenhouse Gas Pol- +lution Pricing Act, an amount not exceeding the amount +determined by the formula +A – B +where +A +is the amount of security that would, at that time, be +satisfactory to the Minister if it were given by the +person in accordance with subsection (1) or (2), as +the case may be; and +B +is the amount of security, if any, given and main- +tained by the person in accordance with subsection +(1) or (2), as the case may be. +Amount deemed paid +(4) The amount retained under subsection (3) is deemed +to have been paid, at the time referred to in that subsec- +tion, by the Minister to the person, and to have been giv- +en, immediately after that time, by the person as security +in accordance with subsection (1) or (2), as the case may +be. +Reporting periods +54 (1) For the purposes of this Act, a reporting period of +a person is +(a) before 2023, the period that begins on Septem- +ber 1, 2022 and ends on December 31, 2022; and +(b) after 2022 +(i) unless subparagraph (ii) applies, a calendar +quarter, or +(ii) if prescribed conditions are met, a prescribed +period. +Reporting period — registration or cancellation +(2) Despite subsection (1), if at a particular time the +Minister registers a person, or cancels a registration of a +person, under this Division +(a) the particular reporting period of the person that +includes the particular time ends on the day that in- +cludes the particular time; and +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 190 +(b) a reporting period of the person begins on the day +after the day that includes the particular time and +ends on the day that is the last day of the calendar +quarter that includes the particular time. +Filing of return +55 (1) Every person that is registered or required to be +registered under this Division must file a return with the +Minister for each reporting period of the person. The re- +turn is to be filed on or before the last day of the first +month after the end of the reporting period. +Filing of return — non-registered persons +(2) Every person that is not registered and not required +to be registered under this Division must file a return +with the Minister for each reporting period of the person +in which tax (other than tax under section 20) becomes +payable by the person. The return is to be filed on or be- +fore the last day of the first month after the end of the re- +porting period. +Filing of return — regulations +(3) Despite subsections (1) and (2), if prescribed circum- +stances exist, a return for a reporting period that is a pre- +scribed reporting period is to be filed with the Minister in +accordance with prescribed rules. +Filing not required — regulations +(4) Despite subsections (1) and (2), if prescribed circum- +stances exist, a return for a reporting period that is a pre- +scribed reporting period is not required to be filed. +Form and content +56 Every return that is required to be filed under section +55 is to be made in prescribed form containing prescribed +information and is to be filed in prescribed manner. +Net tax — obligation +57 (1) Every person that is required to file a return un- +der section 55 must, in the return, determine the net tax +for the reporting period of the person for which the re- +turn is required to be filed. +Determination of net tax +(2) Subject to this Act, the net tax for a particular report- +ing period of a person is, for the purposes of this Act, the +positive or negative amount determined by the formula +(A − B) + C +where +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 191 +A +is the total of all amounts, each of which is an +amount of tax (other than tax under section 20) that +becomes payable by the person in the particular re- +porting period; +B +is the total of all amounts, each of which is an +amount of a rebate under Subdivision A of Division 4 +payable by the Minister in respect of a reporting pe- +riod and that is claimed by the person in the return +under section 55 for the particular reporting period; +and +C +is a prescribed amount. +Requirement to pay +(3) If the net tax for a reporting period of a person is a +positive amount, the person must pay that amount to the +Receiver General on or before the day on or before which +the return for the reporting period is required to be filed. +Rebate of net tax +(4) If the net tax for a reporting period of a person is a +negative amount, the person may claim in the return for +the reporting period the amount of that net tax as a re- +bate for the reporting period payable to the person by the +Minister. The Minister must pay the rebate to the person +with all due dispatch after the return is filed. +Restriction — rebate of net tax +(5) The Minister is not required to pay a rebate under +subsection (4) to a person unless the Minister is satisfied +that all information, that is contact information or that is +information relating to the identification and business +activities of the person, to be given by the person on any +application for registration made by the person under +this Division has been provided and is accurate. +Restriction — rebate of net tax +(6) A rebate under subsection (4) is not to be paid to a +person at any time unless all returns of which the Minis- +ter has knowledge and that are required to be filed at or +before that time by the person under this Act, the Excise +Tax Act, the Income Tax Act, the Air Travellers Security +Charge Act, the Excise Act, 2001 and Part 1 of the Green- +house Gas Pollution Pricing Act have been filed with the +Minister. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 192 +Interest on rebate of net tax +(7) If a rebate for a reporting period of a person is paid to +the person under subsection (4), interest at the specified +rate is to be paid to the person on the rebate for the peri- +od that begins on the day that is 30 days after the later of +the day the return in which the rebate is claimed is filed +with the Minister and the day following the last day of +the reporting period and that ends on the day the rebate +is paid. +Overpayment of rebate or interest +58 If an amount is paid to, or applied to a liability of, a +person as a rebate, or as interest, under this Act and the +person is not entitled to the rebate or interest, as the case +may be, or the amount paid or applied exceeds the rebate +or interest, as the case may be, to which the person is en- +titled, the person must pay to the Receiver General an +amount equal to the rebate, interest or excess, as the case +may be, on the day the rebate, interest or excess, as the +case may be, is paid to, or applied to a liability of, the +person. +Information return +59 (1) A person (other than a prescribed person) must +file with the Minister an information return for a report- +ing period of the person if +(a) the person is required under section 55 to file a re- +turn for the reporting period; +(b) the person sells a subject item to a purchaser, the +sale is completed during the reporting period, the tax- +able amount of the subject item determined under sec- +tion 18 in respect of the sale exceeds the price thresh- +old in respect of the subject item and +(i) an exemption certificate applies in respect of the +sale in accordance with section 36, +(ii) tax under section 18 in respect of the sale of the +subject item is payable by the purchaser, or +(iii) tax under section 18 is not payable by the per- +son because of the application of subsection 19(3); +(c) the person imports a subject item, the subject item +is accounted for in accordance with section 32 of the +Customs Act at any time during the reporting period, +the taxable amount of the subject item determined un- +der section 20 in respect of the importation exceeds +the price threshold in respect of the subject item and +tax is not payable by the person under section 20 be- +cause of the application of subsection 21(3); or +(d) prescribed circumstances exist. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 193 +Information return — form and content +(2) An information return in respect of a reporting peri- +od of a person that is required to be filed under this sec- +tion must +(a) be made in prescribed form containing prescribed +information; +(b) be filed with the Minister in prescribed manner on +or before the last day of the first month after the end +of the reporting period of the person; +(c) specify the identification number of each subject +item that is sold by the person and in respect of which +the following conditions are met: +(i) the sale of the subject item is completed during +the reporting period, +(ii) the taxable amount of the subject item deter- +mined under section 18 in respect of the sale ex- +ceeds the price threshold in respect of the subject +item, and +(iii) it is the case that +(A) an exemption certificate applies in respect of +the sale in accordance with section 36, +(B) tax under section 18 in respect of the sale of +the subject item is payable by the purchaser, or +(C) tax under section 18 is not payable by the +person because of the application of subsection +19(3); and +(d) specify the identification number of each subject +item that is imported by the person and in respect of +which the following conditions are met: +(i) the subject item is accounted for in accordance +with section 32 of the Customs Act at any time dur- +ing the reporting period, +(ii) the taxable amount of the subject item deter- +mined under section 20 in respect of the importa- +tion exceeds the price threshold in respect of the +subject item, and +(iii) tax is not payable by the person under section +20 because of the application of subsection 21(3). +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 194 +Information return — regulations +(3) If prescribed circumstances exist, an information re- +turn for a reporting period must be filed in accordance +with prescribed rules. +PART 2 +Administration +DIVISION 1 +Miscellaneous +SUBDIVISION A +Trustees, Receivers and Personal +Representatives +Definitions +60 (1) The following definitions apply in this section. +bankrupt has the same meaning as in section 2 of the +Bankruptcy and Insolvency Act. (failli) +business includes a part of a business. (entreprise) +receiver means a person that +(a) under the authority of a debenture, bond or other +debt security, of a court order or of an Act of Parlia- +ment or of the legislature of a province, is empowered +to operate or manage a business or a property of an- +other person; +(b) is appointed by a trustee under a trust deed in re- +spect of a debt security to exercise the authority of the +trustee to manage or operate a business or a property +of the debtor under the debt security; +(c) is appointed by a bank or an authorized foreign +bank, as those terms are defined in section 2 of the +Bank Act, to act as an agent or mandatary of the bank +in the exercise of the authority of the bank under sub- +section 426(3) of that Act in respect of property of an- +other person; +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 195 +(d) is appointed as a liquidator to liquidate the assets +of a corporation or to wind up the affairs of a corpora- +tion; or +(e) is appointed as a committee, guardian, curator, tu- +tor or mandatary in case of incapacity with the author- +ity to manage and care for the affairs and assets of an +individual who is incapable of managing those affairs +and assets. +It includes a person that is appointed to exercise the au- +thority of a creditor under a debenture, bond or other +debt security to operate or manage a business or a prop- +erty of another person, but, if a person is appointed to ex- +ercise the authority of a creditor under a debenture, bond +or other debt security to operate or manage a business or +a property of another person, it does not include that +creditor. (séquestre) +relevant assets of a receiver means +(a) if the receiver’s authority relates to all the proper- +ties, businesses, affairs and assets of a person, all +those properties, businesses, affairs and assets; and +(b) if the receiver’s authority relates to only part of the +properties, businesses, affairs or assets of a person, +that part of the properties, businesses, affairs or as- +sets. (actif pertinent) +representative means a person, other than a trustee in +bankruptcy or a receiver, that is administering, winding +up, controlling or otherwise dealing with any property, +business, estate or succession of another person. (repré- +sentant) +Trustee in bankruptcy — obligations +(2) For the purposes of this Act, if on a particular day a +person becomes a bankrupt, +(a) the trustee in bankruptcy, and not the person, is li- +able for the payment of any amount (other than an +amount that relates solely to activities in which the +person begins to engage on or after the particular day +and to which the bankruptcy does not relate) that is +required to be paid by the person under this Act, dur- +ing the period beginning on the day immediately after +the day on which the trustee became the trustee in +bankruptcy of the person and ending on the day on +which the discharge of the trustee is granted under the +Bankruptcy and Insolvency Act, except that +(i) the trustee is liable for the payment of any +amount that is required to be paid by the person +under this Act after the particular day in respect of +reporting periods that ended on or before the +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 196 +particular day but only to the extent of the property +of the person in possession of the trustee available +to satisfy the liability, +(ii) the trustee is not liable for the payment of any +amount for which a receiver is liable under subsec- +tion (3), and +(iii) the payment by the person of an amount in re- +spect of the liability discharges the liability of the +trustee to the extent of that amount; +(b) if, on the particular day, the person is registered +under Division 5 of Part 1, the registration continues +in relation to the activities of the person to which the +bankruptcy relates as though the trustee in bankrupt- +cy were registered under that Division in the same ca- +pacity as the person in respect of those activities and +ceases to apply to the activities of the person in which +the person begins to engage on or after the particular +day and to which the bankruptcy does not relate; +(c) the reporting periods of the person begin and end +on the day on which they would have begun and ended +if the bankruptcy had not occurred, except that +(i) the reporting period of the person during which +the person becomes a bankrupt ends on the partic- +ular day and a new reporting period of the person +in relation to the activities of the person to which +the bankruptcy relates begins on the day immedi- +ately after the particular day, and +(ii) the reporting period of the person, in relation to +the activities of the person to which the bankruptcy +relates, during which the trustee in bankruptcy is +discharged under the Bankruptcy and Insolvency +Act ends on the day on which the discharge is +granted; +(d) subject to paragraph (f), the trustee in bankruptcy +must file with the Minister in the prescribed form and +manner all returns in respect of the activities of the +person to which the bankruptcy relates for the report- +ing periods of the person ending in the period begin- +ning on the day immediately after the particular day +and ending on the day on which the discharge of the +trustee is granted under the Bankruptcy and Insol- +vency Act and that are required under this Act to be +filed by the person, as if those activities were the only +activities of the person; +(e) subject to paragraph (f), if the person has not on or +before the particular day filed a return required under +this Act to be filed by the person for a reporting period +of the person ending on or before the particular day, +the trustee in bankruptcy must, unless the Minister +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 197 +waives in writing the requirement for the trustee to +file the return, file with the Minister in the prescribed +form and manner a return for that reporting period of +the person; and +(f) if there is a receiver with authority in respect of +any business, property, affairs or assets of the person, +the trustee in bankruptcy is not required to include in +any return any information that the receiver is re- +quired under subsection (3) to include in a return. +Receiver’s obligations +(3) For the purposes of this Act, if on a particular day a +receiver is vested with authority to manage, operate, liq- +uidate or wind up any business or property, or to manage +and care for the affairs and assets, of a person, +(a) if the relevant assets of the receiver are a part and +not all of the person’s businesses, properties, affairs or +assets, the relevant assets of the receiver are deemed +to be, throughout the period during which the receiver +is acting as receiver of the person, separate from the +remainder of the businesses, properties, affairs or as- +sets of the person as though the relevant assets were +businesses, properties, affairs or assets, as the case +may be, of a separate person; +(b) the person and the receiver are jointly and several- +ly, or solidarily, liable for the payment of any amount +that is required to be paid by the person under this Act +before or during the period during which the receiver +is acting as receiver of the person to the extent that the +amount can reasonably be considered to relate to the +relevant assets of the receiver or to the businesses, +properties, affairs or assets of the person that would +have been the relevant assets of the receiver if the re- +ceiver had been acting as receiver of the person at the +time the amount became payable except that +(i) the receiver is liable for the payment of any +amount that is required to be paid by the person +under this Act before that period only to the extent +of the property of the person in possession or under +the control and management of the receiver after +(A) satisfying the claims of creditors whose +claims ranked, on the particular day, in priority +to the claim of the Crown in respect of the +amount, and +(B) paying any amounts that the receiver is re- +quired to pay to a trustee in bankruptcy of the +person, +(ii) the person is not liable for the payment of any +amount payable by the receiver, and +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 198 +(iii) the payment by the person or the receiver of an +amount in respect of the liability discharges the +joint and several, or solidary, liability to the extent +of that amount; +(c) the reporting periods of the person begin and end +on the day on which they would have begun and ended +if the vesting had not occurred, except that +(i) the reporting period of the person, in relation to +the relevant assets of the receiver, during which the +receiver begins to act as receiver of the person, ends +on the particular day and a new reporting period of +the person in relation to the relevant assets begins +on the day immediately after the particular day, +and +(ii) the reporting period of the person, in relation to +the relevant assets, during which the receiver ceas- +es to act as receiver of the person, ends on the day +on which the receiver ceases to act as receiver of the +person; +(d) the receiver must file with the Minister in the pre- +scribed form and manner all returns in respect of the +relevant assets of the receiver for reporting periods +ending in the period during which the receiver is act- +ing as receiver and that are required under this Act to +be made by the person, as if the relevant assets were +the only businesses, properties, affairs and assets of +the person; and +(e) if the person has not on or before the particular +day filed a return required under this Act to be filed by +the person for a reporting period of the person ending +on or before the particular day, the receiver must, un- +less the Minister waives in writing the requirement for +the receiver to file the return, file with the Minister in +the prescribed form and manner a return for that re- +porting period that relates to the businesses, proper- +ties, affairs or assets of the person that would have +been the relevant assets of the receiver if the receiver +had been acting as receiver of the person during that +reporting period. +Certificates for receivers and representatives +(4) Every receiver and representative that controls prop- +erty of another person that is required to pay any amount +under this Act must, before distributing the property to +any person, obtain a certificate from the Minister certify- +ing that the following amounts have been paid or that se- +curity for the payment of them has, in accordance with +this Act, been accepted by the Minister: +(a) all amounts that are payable by the other person +under this Act in respect of the reporting period +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 199 +during which the distribution is made, or any previous +reporting period; and +(b) all amounts that are, or can reasonably be expect- +ed to become, payable under this Act by the represen- +tative or receiver in that capacity in respect of the re- +porting period during which the distribution is made, +or any previous reporting period. +Liability for failure to obtain certificate +(5) Any receiver or representative that distributes prop- +erty without obtaining a certificate in respect of the +amounts referred to in subsection (4) is personally liable +for the payment of those amounts to the extent of the val- +ue of the property so distributed. +Estate or succession of deceased individual +61 (1) Subject to subsections 60(4) and (5) and sections +62 and 63, if an individual dies, this Act (other than sec- +tion 75) applies as though the estate or succession of the +individual were the individual and the individual had not +died, except that +(a) the reporting period of the individual during +which the individual died ends on the day the individ- +ual died; and +(b) a reporting period of the estate or succession be- +gins on the day after the individual died and ends on +the day the reporting period of the individual would +have ended if the individual had not died. +Extension +(2) Despite any other provision of this Act, if the return +for the reporting period referred to in paragraph (1)(a) +would, in the absence of this subsection, have been re- +quired to be filed earlier than the particular day that is +the last day of the third month after the month in which +the individual died, that return is required to be filed not +later than the particular day and any amount payable un- +der this Act in respect of that reporting period is payable +to the Receiver General on the particular day. +Definitions +62 (1) The following definitions apply in this section +and in section 63. +trust includes the estate or succession of a deceased in- +dividual. (fiducie) +trustee includes the personal representative of a de- +ceased individual, but does not include a receiver as de- +fined in subsection 60(1). (fiduciaire) +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 200 +Trustee’s liability +(2) Subject to subsection (3), each trustee of a trust is li- +able to satisfy every obligation imposed on the trust un- +der this Act, whether the obligation was imposed during +or before the period during which the trustee acts as +trustee of the trust, but the satisfaction of an obligation +of a trust by one of the trustees of the trust discharges the +liability of all other trustees of the trust to satisfy that +obligation. +Joint and several or solidary liability +(3) A trustee of a trust is jointly and severally, or solidar- +ily, liable with the trust and each of the other trustees, if +any, for the payment of all amounts that are required to +be paid by the trust under this Act before or during the +period during which the trustee acts as trustee of the +trust except that +(a) the trustee is liable for the payment of amounts +that are required to be paid by the trust under this Act +before the period only to the extent of the property of +the trust under the control of the trustee; and +(b) the payment by the trust or the trustee of an +amount in respect of the liability discharges their lia- +bility to the extent of that amount. +Waiver +(4) The Minister may, in writing, waive the requirement +for the personal representative of a deceased individual +to file a return for a reporting period of the individual +ending on or before the day the individual died. +Activities of trustee +(5) For the purposes of this Act, if a person acts as +trustee of a trust, anything done by the person in the per- +son’s capacity as trustee of the trust is deemed to have +been done by the trust and not by the person. +Distribution by trust +63 For the purposes of this Act, if a trustee of a trust dis- +tributes, at a particular time, property of the trust to one +or more persons, the distribution of the property is +deemed to be a transfer of ownership of the property by +the trust to the persons at the particular time and the +property is deemed to be delivered to the persons the lo- +cation at which the property is located at the particular +time. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 201 +SUBDIVISION B +Amalgamation and Winding-up +Amalgamations +64 (1) If two or more corporations (each of which is re- +ferred to in this section as a “predecessor”) are merged or +amalgamated to form one corporation (in this section re- +ferred to as the “new corporation”), otherwise than as the +result of the acquisition of property of one corporation by +another corporation pursuant to the purchase of the +property by the other corporation or as the result of the +distribution of the property to the other corporation on +the winding-up of the corporation, except for prescribed +purposes, the new corporation is, for the purposes of this +Act, deemed to be the same corporation as, and a contin- +uation of, each predecessor. +Reporting period +(2) If subsection (1) applies in respect of predecessors +that are merged or amalgamated at a particular time +(a) the reporting period of each predecessor that in- +cludes the particular time ends on the day that in- +cludes the particular time; and +(b) a reporting period of the new corporation begins +on the day following the day that includes the particu- +lar time and ends on the last day of the reporting peri- +od of the new corporation, if that reporting period +were determined in the absence of this subsection, +that includes the particular time. +Winding-up +65 (1) If at a particular time a particular corporation is +wound up and not less than 90% of the issued shares of +each class of the capital stock of the particular corpora- +tion were, immediately before the particular time, owned +by another corporation, except for prescribed purposes, +the other corporation is, for the purposes of this Act, +deemed to be the same corporation as, and a continua- +tion of, the particular corporation. +Reporting period +(2) If the other corporation referred to in subsection (1) +is deemed to be the same corporation as, and a continua- +tion of, the particular corporation referred to in that sub- +section +(a) the reporting period of the particular corporation +that includes the particular time referred to in that +subsection ends on the day that includes the particular +time; and +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 202 +(b) a reporting period of the other corporation begins +on the day following the day that includes the particu- +lar time and ends on the last day of the reporting peri- +od of the other corporation, if that reporting period +were determined in the absence of this subsection, +that includes the particular time. +SUBDIVISION C +Partnerships and Joint Ventures +Partnerships +66 (1) For the purposes of this Act, anything done by a +person as a member of a partnership is deemed to have +been done by the partnership in the course of the part- +nership’s activities and not to have been done by the per- +son. +Joint and several or solidary liability +(2) A partnership and each member or former member +(each of which is referred to in this subsection as the +“member”) of the partnership (other than a member that +is a limited partner and is not a general partner) are +jointly and severally, or solidarily, liable for +(a) the payment of all amounts that are required to be +paid by the partnership under this Act before or dur- +ing the period during which the member is a member +of the partnership or, if the member was a member of +the partnership at the time the partnership was dis- +solved, after the dissolution of the partnership, except +that +(i) the member is liable for the payment of amounts +that become payable before the period only to the +extent of the property that is regarded as property +of the partnership under the relevant laws of gener- +al application in force in a province relating to part- +nerships, and +(ii) the payment by the partnership or by any mem- +ber of the partnership of an amount in respect of +the liability discharges their liability to the extent of +that amount; and +(b) all other obligations under this Act that arose be- +fore or during that period for which the partnership is +liable or, if the member was a member of the partner- +ship at the time the partnership was dissolved, the +obligations that arose upon or as a consequence of the +dissolution. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 203 +Joint ventures +67 (1) For the purposes of this Act, anything done by a +participant in a joint venture, or by an operator of the +joint venture, in the course of the activities for which the +joint venture agreement was entered into are deemed to +have been done by the joint venture in the course of the +joint venture’s activities and not to have been done by the +participant or operator. +Joint and several or solidary liability +(2) A joint venture and each participant in, or operator +of, the joint venture (each of which is referred to in this +subsection as the “member”) are jointly and severally, or +solidarily, liable for +(a) the payment of all amounts that become payable +by the joint venture under this Act before or during +the period during which the member is a participant +in, or operator of, the joint venture, except that the +payment by the joint venture or by any member of an +amount in respect of the liability discharges their lia- +bility to the extent of that amount; and +(b) all other obligations under this Act that arose be- +fore or during that period for which the joint venture +is liable. +SUBDIVISION D +Anti-avoidance +Definitions +68 (1) The following definitions apply in this section. +tax benefit means a reduction, an avoidance or a defer- +ral of an amount of tax or other amount payable by a per- +son under this Act or an increase in a rebate or other +amount payable to a person under this Act. (avantage +fiscal) +tax-related consequences to a person means the +amount of tax, net tax, rebate or other amount payable +by, or payable to, the person under this Act, or any other +amount that is relevant for the purposes of computing +that amount. (attribut fiscal) +transaction includes an arrangement or event. (opéra- +tion) +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 204 +General anti-avoidance provision +(2) If a transaction is an avoidance transaction, the tax- +related consequences to a person must be determined as +is reasonable in the circumstances in order to deny a tax +benefit that, in the absence of this section, would result +directly or indirectly from that transaction or from a se- +ries of transactions that includes that transaction. +Avoidance transaction +(3) An avoidance transaction means any transaction +(a) that, in the absence of this section, would result di- +rectly or indirectly in a tax benefit, unless the transac- +tion may reasonably be considered to have been un- +dertaken or arranged primarily for bona fide purposes +other than to obtain the tax benefit; or +(b) that is part of a series of transactions, which se- +ries, in the absence of this section, would result direct- +ly or indirectly in a benefit, unless the transaction may +reasonably be considered to have been undertaken or +arranged primarily for bona fide purposes other than +to obtain the tax benefit. +Provision not applicable +(4) For greater certainty, subsection (2) does not apply in +respect of a transaction if it may reasonably be consid- +ered that the transaction would not result directly or in- +directly in a misuse of the provisions of this Act or in an +abuse having regard to the provisions of this Act (other +than this section) read as a whole. +Determination of tax-related consequences +(5) Without restricting the generality of subsection (2), +in determining the tax-related consequences to a person, +as is reasonable in the circumstances, in order to deny a +tax benefit that would, in the absence of this section, re- +sult directly or indirectly from an avoidance transaction +(a) any rebate or any deduction in net tax may be al- +lowed or disallowed, in whole or in part; +(b) any rebate or deduction referred to in paragraph +(a) may, in whole or in part, be allocated to any per- +son; +(c) the nature of any payment or other amount may be +recharacterized; and +(d) the effects that would otherwise result from the +application of other provisions of this Act may be ig- +nored. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 205 +Exception +(6) Despite any other provision of this Act, the tax- +related consequences to any person following the appli- +cation of this section must only be determined through +an assessment, reassessment or additional assessment +involving the application of this section. +Definitions +69 (1) The following definitions apply in this section. +parameter change means a change in any of the follow- +ing: +(a) a formula, or an element of a formula, in a provi- +sion of this Act; +(b) a price threshold in respect of a subject item; +(c) a manner for determining the taxable amount of a +subject item or the amount of tax payable in respect of +a subject item; +(d) an activity described in subsection 11(3) or (4); or +(e) words or expressions defined in a provision of this +Act. (modification de paramètre) +tax benefit has the meaning assigned by subsection +68(1). (avantage fiscal) +transaction has the meaning assigned by subsection +68(1). (opération) +Parameter change — transactions +(2) If +(a) a transaction, or a series of transactions, involving +property is made between two or more persons, all of +whom are not dealing with each other at arm’s length +at the time any of those transactions are made, +(b) the transaction, any of the transactions in the se- +ries of transactions or the series of transactions would +in the absence of this section result directly or indi- +rectly in a tax benefit to one or more of the persons in- +volved in the transaction or series of transactions, and +(c) it may not reasonably be considered that the trans- +action, or the series of transactions, has been under- +taken or arranged primarily for bona fide purposes +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 206 +other than to obtain a tax benefit, arising from a pa- +rameter change, for one or more of the persons in- +volved in the transaction or series of transactions, +the amount of tax, net tax, rebate or other amount +payable by, or payable to, any of those persons under this +Act, or any other amount that is relevant for the purposes +of computing that amount must be determined as is rea- +sonable in the circumstances in order to deny the tax +benefit to any of those persons. +Denying tax benefit on transactions +(3) Despite any other provision of this Act, a tax benefit +must only be denied under subsection (2) through an as- +sessment, reassessment or additional assessment. +DIVISION 2 +Administration and Enforcement +SUBDIVISION A +Payments +Set-off of rebate +70 If, at any time, a person files a particular return un- +der section 55 in which the person reports an amount +that is required to be paid by the person under this Act +and the person claims a rebate under Subdivision B of +Division 4 of Part 1 or subsection 57(4) payable to the +person under this Act at that time, in the particular re- +turn or in another return, or in a separate application +filed under this Act with the particular return, the person +is deemed to have paid at that time, and the Minister is +deemed to have rebated at that time, an amount equal to +the lesser of the amount required to be paid and the +amount of the rebate. +Definition of electronic payment +71 (1) In this section, electronic payment means any +payment to the Receiver General that is made through +electronic services offered by a person described in any of +paragraphs (2)(a) to (d) or by any electronic means speci- +fied by the Minister. +Electronic payment +(2) Every person that is required under this Act to pay an +amount to the Receiver General must, if the amount +is $10,000 or more, make the payment by way of electron- +ic payment, unless the person cannot reasonably pay the +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 207 +amount in that manner, to the account of the Receiver +General at or through +(a) a bank; +(b) a credit union; +(c) a corporation authorized under the laws of Canada +or a province to carry on the business of offering its +services as a trustee to the public; or +(d) a corporation that is authorized under the laws of +Canada or a province to accept deposits from the pub- +lic and that carries on the business of lending money +on the security of real property or immovables or in- +vesting in indebtedness on the security of mortgages +on real property or hypothecs on immovables. +Small amounts owing +72 (1) If, at any time, the total of all unpaid amounts +owing by a person to the Receiver General under this Act +does not exceed $2.00, the amount owing by the person is +deemed to be nil. +Small amounts payable +(2) If, at any time, the total of all amounts payable by the +Minister to a person under this Act does not ex- +ceed $2.00, the Minister may apply those amounts +against any amount owing, at that time, by the person to +Her Majesty in right of Canada. However, if the person, +at that time, does not owe any amount to Her Majesty in +right of Canada, those amounts payable are deemed to be +nil. +Authority for separate returns +73 (1) A person that engages in one or more activities in +separate branches or divisions may file an application, in +the prescribed form and manner, with the Minister for +the authority to file separate returns and applications for +rebates under this Act in respect of a branch or division +specified in the application. +Authorization by Minister +(2) On receipt of the application, the Minister may, in +writing, authorize the person to file separate returns and +applications for rebates in relation to the specified +branch or division, subject to any conditions that the +Minister may at any time impose, if the Minister is satis- +fied that +(a) the branch or division can be separately identified +by reference to its location or the nature of the activi- +ties engaged in by it; and +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 208 +(b) separate records, books of account and accounting +systems are maintained in respect of the branch or di- +vision. +Revocation of authorization +(3) The Minister may revoke an authorization if +(a) the person, in writing, requests the Minister to re- +voke the authorization; +(b) the person fails to comply with any condition im- +posed in respect of the authorization or any provision +of this Act; +(c) the Minister is no longer satisfied that the require- +ments of subsection (2) in respect of the person are +met; or +(d) the Minister considers that the authorization is no +longer required. +Notice of revocation +(4) If the Minister revokes an authorization, the Minister +must send a notice in writing of the revocation to the per- +son and must specify in the notice the effective date of +the revocation. +Definition of electronic filing +74 (1) For the purposes of this section, electronic filing +means using electronic media in a manner specified in +writing by the Minister. +Electronic filing +(2) A person that is required to file with the Minister a +return under this Act or an application under Division 3 +or 4 of Part 1, and that meets the criteria specified in +writing by the Minister for the purposes of this section, +may file it by way of electronic filing. +Mandatory electronic filing +(3) The Minister may require that a return under this Act +or an application under Division 3 or 4 of Part 1 be filed +by way of electronic filing. +Deemed filing +(4) For the purposes of this Act, if a person files a return +under this Act or an application under Division 3 or 4 of +Part 1, by way of electronic filing, the return or applica- +tion, as the case may be, is deemed to be a return or an +application made in the prescribed form filed with the +Minister on the day on which the Minister acknowledges +acceptance of it. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 209 +Execution of returns, etc. +75 A return (other than a return filed by way of electron- +ic filing under section 74), certificate or other document +made under this Act (other than an exemption certificate +referred to in section 36) by a person that is not an indi- +vidual must be signed on behalf of the person by an indi- +vidual duly authorized to do so by the person or the gov- +erning body of the person and the following people are +deemed to be so duly authorized: +(a) if the person is a corporation or an association or +organization that has duly elected or appointed offi- +cers, the president, vice-president, secretary and trea- +surer, or other equivalent officers, of the person; and +(b) if the person is the estate or succession of a de- +ceased individual, the personal representative of the +estate or succession. +Extension of time +76 (1) The Minister may at any time extend, in writing, +the time for filing a return or providing information un- +der this Act. +Effect of extension +(2) If the Minister extends the time within which a per- +son must file a return or provide information under sub- +section (1), the following rules apply: +(a) the return must be filed, or the information must +be provided, within the time so extended; +(b) any amount payable that the person is required to +report in the return must be paid within the time so +extended; +(c) any interest payable under section 82 on the +amount referred to in paragraph (b) must be calculat- +ed as though the amount were required to be paid on +the day on which the extended time expires; and +(d) any penalty payable under section 107 in respect of +the return must be calculated as though the return +were required to be filed on the day on which the ex- +tended time expires. +Demand for return +77 The Minister may, on demand sent by the Minister, +require a person to file, within any reasonable time stipu- +lated in the demand, a return under this Act for any peri- +od designated in the demand. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 210 +SUBDIVISION B +Administration and Officers +Minister’s duty +78 The Minister must administer and enforce this Act +and the Commissioner may exercise the powers and per- +form the duties of the Minister under this Act. +Staff +79 (1) The persons that are necessary to administer and +enforce this Act are to be appointed, employed or en- +gaged in the manner authorized by law. +Delegation of powers +(2) The Minister may authorize any person employed or +engaged by the Canada Revenue Agency or who occupies +a position of responsibility in the Canada Revenue Agen- +cy to exercise powers or perform duties of the Minister, +including any judicial or quasi-judicial power or duty of +the Minister, under this Act. +Administration of oaths +80 Any person, if designated by the Minister for the pur- +pose, may administer oaths and take and receive affi- +davits, declarations and affirmations for the purposes of +or incidental to the administration or enforcement of this +Act, and every person so designated has for those pur- +poses all the powers of a commissioner for administering +oaths or taking affidavits. +Inquiry +81 (1) The Minister may, for any purpose related to the +administration or enforcement of this Act, authorize any +person, whether or not the person is an officer of the +Canada Revenue Agency, to make any inquiry that the +Minister may deem necessary with reference to anything +relating to the administration or enforcement of this Act. +Appointment of hearing officer +(2) If the Minister, under subsection (1), authorizes a +person to make an inquiry, the Minister must forthwith +apply to the Tax Court of Canada for an order appointing +a hearing officer before whom the inquiry will be held. +Powers of hearing officer +(3) For the purposes of an inquiry authorized under sub- +section (1), a hearing officer appointed under subsection +(2) in relation to the inquiry has all the powers conferred +on a commissioner by sections 4 and 5 of the Inquiries +Act and that may be conferred on a commissioner under +section 11 of that Act. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 211 +When powers to be exercised +(4) A hearing officer appointed under subsection (2) in +relation to an inquiry must exercise the powers conferred +on a commissioner by section 4 of the Inquiries Act in re- +lation to any persons that the person authorized to make +the inquiry considers appropriate for the conduct of the +inquiry, but the hearing officer is not to exercise the pow- +er to punish any person unless, on application by the +hearing officer, a judge, including a judge of a county +court, certifies that the power may be exercised in the +matter disclosed in the application and the applicant has +given to the person in respect of whom the power is pro- +posed to be exercised 24 hours notice of the hearing of +the application, or any shorter notice that the judge con- +siders reasonable. +Rights of witnesses +(5) Any person who gives evidence in an inquiry autho- +rized under subsection (1) is entitled to be represented by +counsel and, on request made by the person to the Minis- +ter, to receive a transcript of that evidence. +Rights of person investigated +(6) Any person whose affairs are investigated in the +course of an inquiry authorized under subsection (1) is +entitled to be present and to be represented by counsel +throughout the inquiry unless the hearing officer ap- +pointed under subsection (2), on application by the Min- +ister or a person giving evidence, orders otherwise in re- +lation to the whole or any part of the inquiry, on the +ground that the presence of the person and the person’s +counsel, or either of them, would be prejudicial to the ef- +fective conduct of the inquiry. +SUBDIVISION C +Interest +Specified rate of interest +82 (1) For the purposes of every provision of this Act +that requires interest to be computed at a specified rate +(a) if the interest is to be paid or applied on an +amount payable by the Minister to a person, the speci- +fied rate in effect during a calendar quarter is +(i) the prescribed rate, or +(ii) if no rate is prescribed under subparagraph (i), +the interest rate determined for the calendar quar- +ter under subsection 2(2) of the Interest Rates (Ex- +cise Act, 2001) Regulations; and +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 212 +(b) in any other case, the specified rate in effect dur- +ing a calendar quarter is +(i) the prescribed rate, or +(ii) if no rate is prescribed under subparagraph (i), +the interest rate determined for the calendar quar- +ter under subsection 2(1) of the Interest Rates (Ex- +cise Act, 2001) Regulations. +Compound interest +(2) If a person fails to pay an amount to the Receiver +General as and when required under this Act, the person +must pay to the Receiver General interest on the amount. +The interest must be compounded daily at the specified +rate and computed for the period that begins on the first +day after the day on or before which the amount was re- +quired to be paid and that ends on the day the amount is +paid. +Payment of interest that is compounded +(3) For the purposes of subsection (2), interest that is +compounded on a particular day on an unpaid amount of +a person is deemed to be required to be paid by the per- +son to the Receiver General at the end of the particular +day, and, if the person has not paid the interest so com- +puted by the end of the day after the particular day, the +interest must be added to the unpaid amount at the end +of the particular day. +Payment before specified date +(4) If the Minister has served a demand that a person +pay on or before a specified date all amounts payable by +the person under this Act on the date of the demand, and +the person pays the amount demanded on or before the +specified date, the Minister must waive any interest that +would otherwise apply in respect of the amount demand- +ed for the period beginning on the first day following the +date of the demand and ending on the day of payment. +Compound interest on amounts owed by Her Majesty +83 Interest must be compounded daily at the specified +rate on amounts owed under this Act by Her Majesty in +right of Canada to a person and computed for the period +beginning on the first day after the day on which the +amount is required to be paid by Her Majesty in right of +Canada and ending on the day on which the amount is +paid or is applied against an amount owed by the person +to Her Majesty in right of Canada. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 213 +Interest if Act amended +84 For greater certainty, if a provision of an Act amends +this Act and provides that the amendment comes into +force on, or applies as of, a particular day that is before +the day on which the provision is assented to, the provi- +sions of this Act that relate to the calculation and pay- +ment of interest apply in respect of the amendment as +though the provision had been assented to on the partic- +ular day. +Waiving or reducing interest +85 (1) The Minister may, on or before the day that is 10 +calendar years after the end of a reporting period of a +person, or on application by the person on or before that +day, waive, cancel or reduce any interest payable by the +person under this Act on an amount that is required to be +paid by the person under this Act in respect of the report- +ing period. +Interest where amounts waived or reduced +(2) If a person has paid an amount of interest and the +Minister has waived or reduced under subsection (1) any +portion of the amount, the Minister must pay interest at +the specified rate on an amount equal to the portion of +the amount that was waived or reduced beginning on the +day that is 30 days after the day on which the Minister re- +ceived a request in a manner satisfactory to the Minister +to apply that subsection and ending on the day on which +the portion is rebated to the person. +Cancellation of penalties and interest +86 If at any time a person pays all tax and amounts un- +der section 58 payable by the person under this Act for a +reporting period of the person and, immediately before +that time, the total, for the reporting period, of all inter- +est payable by the person under section 82 and penalties +payable under section 107 is not more than $25, the Min- +ister may cancel the total of the penalties and interest. +Dishonoured instruments +87 For the purposes of this Act and section 155.1 of the +Financial Administration Act, any charge that is payable +at any time by a person under the Financial Administra- +tion Act in respect of an instrument tendered in payment +or settlement of an amount that is payable under this Act +is deemed to be an amount that is payable by the person +at that time under this Act. In addition, Part II of the In- +terest and Administrative Charges Regulations does not +apply to the charge and any debt under subsection +155.1(3) of the Financial Administration Act in respect of +the charge is deemed to be extinguished at the time the +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 214 +total of the amount and any applicable interest under this +Act is paid. +SUBDIVISION D +Records and Information +Keeping records +88 (1) Every person that pays or is required to pay an +amount of tax, every person that is required under this +Act to file a return and every person that makes an appli- +cation for a rebate must keep all records that are neces- +sary to enable the determination of the person’s liabilities +and obligations under this Act or the amount of any re- +bate to which the person is entitled under this Act and +whether the person has complied with this Act. +Minister may specify information +(2) The Minister may specify the form a record is to take +and any information that the record must contain. +Language and location of record +(3) Unless otherwise authorized by the Minister, a record +must be kept in Canada in English or in French. +Electronic records +(4) Every person required under this Act to keep a record +that does so electronically must ensure that all equip- +ment and software necessary to make the record intelligi- +ble are available during the retention period required for +the record. +Exemptions +(5) The Minister may, on any terms and conditions that +are acceptable to the Minister, exempt a person or a class +of persons from the requirement in subsection (4). +Inadequate records +(6) If a person fails to keep adequate records for the pur- +poses of this Act, the Minister may, in writing, require +the person to keep any records that the Minister may +specify, and the person must keep the records specified +by the Minister. +General period for retention +(7) Every person that is required to keep records must +retain them until the expiry of six years after the end of +the year to which they relate or for any other period that +may be prescribed. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 215 +Objection or appeal +(8) If a person that is required under this Act to keep +records serves a notice of objection or is a party to an ap- +peal or reference under this Act, the person must retain +every record that pertains to the subject-matter of the ob- +jection, appeal or reference until the objection, appeal or +reference is finally disposed of. +Demand by Minister +(9) If the Minister is of the opinion that it is necessary +for the administration or enforcement of this Act, the +Minister may, by a demand served personally or sent by +confirmed delivery service, require any person required +under this Act to keep records to retain those records for +any period that is specified in the demand, and the per- +son must comply with the demand. +Permission for earlier disposal +(10) A person that is required under this Act to keep +records may dispose of them before the expiry of the pe- +riod during which they are required to be kept if written +permission for their disposal is given by the Minister. +Electronic funds transfer +89 For greater certainty, information obtained by the +Minister under Part XV.1 of the Income Tax Act may be +used for the purposes of this Act. +Requirement to provide information or record +90 (1) Despite any other provision of this Act, the Min- +ister may, subject to subsection (3), for any purpose re- +lated to the administration or enforcement of this Act, by +a notice served or sent in accordance with subsection (2), +require a person resident in Canada or a person that is +not resident in Canada but that is engaged in activities in +Canada to provide any information or record. +Notice +(2) A notice referred to in subsection (1) may be +(a) served personally; +(b) sent by confirmed delivery service; or +(c) sent electronically to a bank or credit union that +has provided written consent to receive notices under +subsection (1) electronically. +Unnamed persons +(3) The Minister must not impose on any person (in this +section referred to as a “third party”) a requirement to +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 216 +provide information or any record relating to one or +more unnamed persons unless the Minister first obtains +the authorization of a judge under subsection (4). +Judicial authorization +(4) A judge of the Federal Court may, on application by +the Minister and subject to any conditions that the judge +considers appropriate, authorize the Minister to impose +on a third party a requirement under subsection (1) relat- +ing to an unnamed person or more than one unnamed +person (in this subsection referred to as the “group”) if +the judge is satisfied by information on oath that +(a) the person or group is ascertainable; and +(b) the requirement is made to verify compliance by +the person or persons in the group with any obligation +under this Act. +Definitions +91 (1) The following definitions apply in this section. +authorized person means a person who is engaged or +employed, or who was formerly engaged or employed, by +or on behalf of Her Majesty in right of Canada to assist in +carrying out the provisions of this Act. (personne auto- +risée) +business number means the number (other than a So- +cial Insurance Number) used by the Minister to identify a +person registered for the purposes of this Act. (numéro +d’entreprise) +confidential information means information of any +kind and in any form that relates to one or more persons +and that is +(a) obtained by or on behalf of the Minister for the +purposes of this Act, or +(b) prepared from information referred to in para- +graph (a), +but does not include information that does not directly or +indirectly reveal the identity of the person to whom it re- +lates and, for the purposes of applying subsections (3), +(13) and (15) to a representative of a government entity +that is not an official, includes only the information de- +scribed in subsection (6). (renseignement confidentiel) +court of appeal has the same meaning as in section 2 of +the Criminal Code. (cour d’appel) +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 217 +government entity does not include a local authority +determined by the Minister to be a municipality under +paragraph (b) of the definition municipality in subsec- +tion 2(1). (entité gouvernementale) +official means a person that is employed in the service +of, that occupies a position of responsibility in the service +of, or that is engaged by or on behalf of Her Majesty in +right of Canada or a province, or a person that was for- +merly so employed, that formerly occupied such a posi- +tion or that formerly was so engaged. (fonctionnaire) +representative of a government entity means a person +that is employed in the service of, that occupies a posi- +tion of responsibility in the service of, or that is engaged +by or on behalf of, a government entity, and includes, for +the purposes of subsections (2), (3), (13) and (15), a per- +son that was formerly so employed, that formerly occu- +pied such a position or that formerly was so engaged. +(représentant) +Provision of confidential information +(2) Except as authorized under this section, an official or +other representative of a government entity must not +knowingly +(a) provide, or allow to be provided, to any person any +confidential information; +(b) allow any person to have access to any confidential +information; or +(c) use any confidential information other than in the +course of the administration or enforcement of this +Act. +Confidential information evidence not compellable +(3) Despite any other Act of Parliament or other law, no +official or other representative of a government entity is +required, in connection with any legal proceedings, to +give or produce evidence relating to any confidential in- +formation. +Communications — proceedings have been +commenced +(4) Subsections (2) and (3) do not apply in respect of +(a) criminal proceedings, either by indictment or on +summary conviction, that have been commenced by +the laying of an information or the preferring of an in- +dictment, under an Act of Parliament; or +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 218 +(b) any legal proceedings relating to the administra- +tion or enforcement of this Act, any other Act of Par- +liament or law of a province that provides for the im- +position of a duty or tax, the Canada Pension Plan, +the Employment Insurance Act or Part 1 of the Green- +house Gas Pollution Pricing Act. +Authorized provision of confidential information +(5) The Minister may provide appropriate persons with +any confidential information that may reasonably be re- +garded as necessary solely for a purpose relating to the +life, health or safety of an individual or to the environ- +ment in Canada or any other country. +Disclosure of confidential information +(6) An official may provide any confidential information +to a person identified in subsection 211(6) of the Excise +Act, 2001, but only to the extent that the information is +described in that subsection and solely for the applicable +purposes identified in that subsection with any modifica- +tions that the circumstances require, including reading +references to the Excise Act, 2001 as references to this +Act. +Restrictions on information sharing +(7) No information may be provided to a representative +of a government entity under subsection (6) in connec- +tion with a program, activity or service provided or un- +dertaken by the government entity unless the govern- +ment entity uses the business number as an identifier in +connection with the program, activity or service. +Public disclosure +(8) The Minister may, in connection with a program, ac- +tivity or service provided or undertaken by the Minister, +make available to the public +(a) the business number of, and the name of (includ- +ing any trade name or other name used by), the holder +of a business number; and +(b) a copy of, or information contained on, a tax cer- +tificate issued under section 37 or a notice of revoca- +tion in respect of such a certificate. +Public disclosure by representative of government +entity +(9) A representative of a government entity may, in con- +nection with a program, activity or service provided or +undertaken by the government entity, make available to +the public the business number of, and the name of +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 219 +(including any trade name or other name used by), the +holder of a business number, if +(a) a representative of the government entity was pro- +vided with that information in accordance with sub- +section (6); and +(b) the government entity uses the business number +as an identifier in connection with the program, activi- +ty or service. +Serious offences +(10) An official may provide information to a law en- +forcement officer of an appropriate police organization in +the circumstances described in subsection 211(6.4) of the +Excise Act, 2001. +Threats to security +(11) An official may provide information to the head, or +their delegate, of a recipient Government of Canada insti- +tution listed in Schedule 3 to the Security of Canada In- +formation Sharing Act in the circumstances described in +subsection 211(6.5) of the Excise Act, 2001. +Measures to prevent unauthorized use or disclosure +(12) The person presiding at a legal proceeding relating +to the supervision, evaluation or discipline of an autho- +rized person may order any measures that are necessary +to ensure that confidential information is not used or +provided to any person for any purpose not relating to +that proceeding, including +(a) holding a hearing in camera; +(b) banning the publication of the information; +(c) concealing the identity of the person to whom the +information relates; and +(d) sealing the records of the proceeding. +Disclosure to person or on consent +(13) An official or other representative of a government +entity may provide confidential information relating to a +person +(a) to that person; and +(b) with the consent of that person, to any other per- +son. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 220 +Confirmation of registration and business number +(14) On being provided by any person with information +specified by the Minister sufficient to identify a single +person and a number, an official may confirm or deny +that the following statements are both true: +(a) the identified person is registered under Division 5 +of Part 1; and +(b) the number is the business number of the identi- +fied person. +Appeal from order or direction +(15) An order or direction that is made in the course of +or in connection with any legal proceedings and that re- +quires an official or other representative of a government +entity to give or produce evidence relating to any confi- +dential information may, by notice served on all interest- +ed parties, be appealed forthwith by the Minister or by +the person against whom the order or direction is made +to +(a) the court of appeal of the province in which the or- +der or direction is made, in the case of an order or di- +rection made by a court or other tribunal established +under the laws of the province, whether that court or +tribunal is exercising a jurisdiction conferred by the +laws of Canada; or +(b) the Federal Court of Appeal, in the case of an or- +der or direction made by a court or other tribunal es- +tablished under the laws of Canada. +Disposition of appeal +(16) The court to which an appeal is taken under subsec- +tion (15) may allow the appeal and quash the order or di- +rection appealed from or may dismiss the appeal, and the +rules of practice and procedure from time to time govern- +ing appeals to the courts must apply, with any modifica- +tions that the circumstances require, in respect of an ap- +peal instituted under subsection (15). +Stay +(17) An appeal instituted under subsection (15) must +stay the operation of the order or direction appealed +from until judgment is pronounced. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 221 +SUBDIVISION E +Assessments +Assessment +92 (1) The Minister may assess a person for any amount +of tax or other amount payable by the person under this +Act and may, despite any previous assessment covering, +in whole or in part, the same matter, vary the assess- +ment, reassess the person or make any additional assess- +ments that the circumstances require. +Liability not affected +(2) The liability of a person to pay an amount under this +Act is not affected by an incorrect or incomplete assess- +ment or by the fact that no assessment has been made. +Minister not bound +(3) The Minister is not bound by any return, application +or information provided by or on behalf of any person +and may make an assessment despite any return, appli- +cation or information provided or not provided. +Assessment valid and binding +(4) An assessment, subject to being vacated on an objec- +tion or appeal under this Act and subject to a reassess- +ment, is deemed to be valid and binding. +Assessment deemed valid +(5) Subject to being reassessed or vacated as a result of +an objection or appeal under this Act, an assessment is +deemed to be valid and binding despite any error, defect +or omission in the assessment or in any proceeding un- +der this Act relating to it. +Rebate on reassessment +(6) If a person has paid an amount assessed under this +section and the amount paid exceeds the amount deter- +mined on reassessment to have been payable by the per- +son, the Minister must pay a rebate to the person equal +to the excess and, for the purpose of section 83, the re- +bate is deemed to have been required to be paid on the +day on which the amount was paid to the Minister to- +gether with interest on the excess at the specified rate for +the period beginning on the day the amount was paid by +the person and ending on the day the rebate is paid. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 222 +Determination of rebates +(7) In making an assessment, the Minister may take into +account any rebate payable to the person being assessed +under this Act. If the Minister does so, the person is +deemed to have applied for the rebate under this Act on +the day the notice of assessment is sent. +Interest on cancelled amounts +(8) Despite subsection (6), if a person has paid an +amount of interest or penalty and the Minister waives or +cancels that amount under section 85 or 120, the Minister +must rebate the amount to the person, together with in- +terest on the amount at the specified rate for the period +beginning on the day that is 30 days after the day on +which the Minister received a request in a manner satis- +factory to the Minister to apply that section and ending +on the day on which the rebate is paid. +Assessment of rebate +93 (1) On receipt of an application made by a person for +a rebate under this Act, the Minister must, without delay, +consider the application and assess the amount of the re- +bate, if any, payable to the person. +Reassessment +(2) The Minister may reassess or make an additional as- +sessment of the amount of a rebate despite any previous +assessment of the amount of the rebate. +Assessment of overpayment of rebate +(3) The Minister may assess, reassess or make an addi- +tional assessment of an amount payable by a person un- +der section 58 despite any previous assessment of the +amount. +Payment +(4) If, on assessment under this section, the Minister de- +termines that a rebate is payable to a person, the Minis- +ter must pay the rebate to the person. +Interest +(5) If a rebate under this section is paid to a person, the +Minister must pay interest at the specified rate to the +person on the rebate for the period beginning on the day +that is 30 days after the day on which the application for +the rebate is filed with the Minister and ending on the +day on which the rebate is paid. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 223 +Restriction on payment by Minister +94 An amount under section 92 or 93 is not to be paid to +a person by the Minister at any time, unless all returns of +which the Minister has knowledge and that are required +to be filed at or before that time by the person under this +Act, the Excise Tax Act, the Income Tax Act, the Air +Travellers Security Charge Act, the Excise Act, 2001 and +Part 1 of the Greenhouse Gas Pollution Pricing Act have +been filed with the Minister. +Notice of assessment +95 (1) After making an assessment under this Act, the +Minister must send to the person assessed a notice of the +assessment. +Payment of remainder +(2) If the Minister has assessed a person for an amount, +any portion of that amount then remaining unpaid is +payable to the Receiver General as of the date of the no- +tice of assessment. +Limitation period for assessments +96 (1) Subject to subsections (3) to (7) and (10), no as- +sessment in respect of an amount of tax or other amount +payable by a person under this Act must be made more +than four years after it became payable by the person un- +der this Act. +Period for assessment of rebate +(2) Subject to subsections (3) to (7) and (10), an assess- +ment under subsection 93(1) of the amount of a rebate +may be made at any time, but a reassessment or addi- +tional assessment under section 93 or an assessment un- +der subsection 93(3) in respect of an amount paid or ap- +plied as a rebate or of an amount paid or applied as inter- +est in respect of an amount paid or applied as a rebate is +not to be made more than four years after the day the ap- +plication for the rebate was filed in accordance with this +Act. +Exception — objection or appeal +(3) A variation of an assessment, or a reassessment, in +respect of an amount of tax or other amount payable un- +der this Act by a person may be made at any time if the +variation or reassessment is made +(a) to give effect to a decision on an objection or ap- +peal; +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 224 +(b) with the written consent of an appellant to dispose +of an appeal; or +(c) to give effect to an alternative basis or argument +advanced by the Minister under subsection (7). +Exception — neglect or fraud +(4) An assessment in respect of any matter may be made +at any time if the person to be assessed has, in respect of +that matter, +(a) made a misrepresentation that is attributable to +their neglect, carelessness or wilful default; or +(b) committed fraud with respect to a return or an ap- +plication for a rebate filed under this Act. +Exception — other period +(5) If, in making an assessment, the Minister determines +that a person has paid in respect of any matter an +amount as or on account of tax, or net tax, payable for a +particular reporting period of the person that was in fact +payable for another reporting period of the person, the +Minister may at any time make an assessment for that +other period in respect of that matter. +Exception — adjustment to rebate +(6) If the result of a reassessment on an objection to, or a +decision on an appeal from, an assessment is to reduce +the amount of tax, or net tax, payable by a person and, by +reason of the reduction, any rebate claimed by the person +for a reporting period, or in an application for a rebate, +should be reduced, the Minister may at any time assess +or reassess that reporting period or that application for +rebate, as the case may be, only for the purpose of taking +the reduction of tax into account in respect of the rebate. +Alternative basis or argument +(7) The Minister may advance an alternative basis or ar- +gument in support of an assessment of a person, or in +support of all or any portion of the total amount deter- +mined on assessment to be payable by a person under +this Act, at any time after the period otherwise limited by +subsection (1) or (2) for making the assessment unless, +on an appeal under this Act, +(a) there is relevant evidence that the person is no +longer able to adduce without leave of the court; and +(b) it is not appropriate in the circumstances for the +court to order that the evidence be adduced. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 225 +Limitation +(8) If a reassessment of a person is made that gives effect +to an alternative basis or argument advanced by the Min- +ister under subsection (7) in support of a particular as- +sessment of the person, the Minister is not to reassess for +an amount that is greater than the total amount of the +particular assessment. +Exception +(9) Subsection (8) does not apply to any portion of an +amount determined on reassessment that the Minister +would be entitled to reassess under this Act at any time +after the period otherwise limited by subsection (1) or (2) +for making the reassessment if this Act were read without +reference to subsection (7). +Exception — waiver +(10) An assessment in respect of any matter specified in +a waiver filed under subsection (11) may be made at any +time within the period specified in the waiver unless the +waiver has been revoked under subsection (12), in which +case an assessment may be made at any time during the +180 days that the waiver remains in effect. +Filing of waiver +(11) Any person may, within the time otherwise limited +by subsection (1) or (2) for an assessment, waive the ap- +plication of subsection (1) or (2) by filing with the Minis- +ter a waiver in the prescribed form specifying the period +for which, and the matter in respect of which, the person +waives the application of that subsection. +Revocation of waiver +(12) Any person that has filed a waiver may revoke it by +filing with the Minister a notice of revocation of the waiv- +er in the prescribed form and manner. The waiver re- +mains in effect for 180 days after the day on which the +notice is filed. +SUBDIVISION F +Objections to Assessment +Objection to assessment +97 (1) Any person that has been assessed and that ob- +jects to the assessment may, within 90 days after the date +of the notice of the assessment, file with the Minister a +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 226 +notice of objection in the prescribed form and manner +setting out the reasons for the objection and all relevant +facts. +Issue to be decided +(2) A notice of objection must +(a) reasonably describe each issue to be decided; +(b) specify in respect of each issue the relief sought, +expressed as the change in any amount that is relevant +for the purposes of the assessment; and +(c) provide the facts and reasons relied on by the per- +son in respect of each issue. +Late compliance +(3) Despite subsection (2), if a notice of objection does +not include the information required under paragraph +(2)(b) or (c) in respect of an issue to be decided that is +described in the notice, the Minister may, in writing, re- +quest the person to provide the information, and that +paragraph is deemed to be complied with in respect of +the issue if, within 60 days after the day on which the re- +quest is made, the person submits the information in +writing to the Minister. +Limitation on objections +(4) Despite subsection (1), if a person has filed a notice +of objection to an assessment (in this subsection referred +to as the “earlier assessment”) and the Minister makes a +particular assessment under subsection (8) as a result of +the notice of objection, unless the earlier assessment was +made in accordance with an order of a court vacating, +varying or restoring an assessment or referring an assess- +ment back to the Minister for reconsideration and re- +assessment, the person may object to the particular as- +sessment in respect of an issue +(a) only if the person complied with subsection (2) in +the notice with respect to that issue; and +(b) only with respect to the relief sought in respect of +that issue as specified by the person in the notice. +Application — subsection (4) +(5) Subsection (4) does not limit the right of the person +to object to the particular assessment in respect of an is- +sue that was part of the particular assessment and not +part of the earlier assessment. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 227 +Limitation on objections +(6) Despite subsection (1), no objection may be made by +a person in respect of an issue for which the right of ob- +jection has been waived in writing by the person. +Acceptance of objection +(7) The Minister may accept a notice of objection even +though it was not filed in the prescribed form and man- +ner. +Consideration of objection +(8) On receipt of a notice of objection, the Minister must, +without delay, reconsider the assessment and vacate or +confirm it or make a reassessment. +Waiving reconsideration +(9) If, in a notice of objection, a person that wishes to ap- +peal directly to the Tax Court of Canada requests the +Minister not to reconsider the assessment objected to, +the Minister may confirm the assessment without recon- +sideration. +Notice of decision +(10) After reconsidering an assessment under subsection +(8) or confirming an assessment under subsection (9), +the Minister must notify the person objecting to the as- +sessment of the Minister’s decision in writing. +Extension of time by Minister +98 (1) If no objection to an assessment is filed under +section 97 within the time limited under this Act, a per- +son may make an application to the Minister to extend +the time for filing a notice of objection and the Minister +may grant the application. +Contents of application +(2) An application must set out the reasons why the no- +tice of objection was not filed within the time limited un- +der this Act for doing so. +How application made +(3) An application must be made by delivering or mail- +ing, to the Assistant Commissioner of the Appeals Branch +of the Canada Revenue Agency, the application accompa- +nied by a copy of the notice of objection. +Defect in application +(4) The Minister may accept an application even though +it was not made in accordance with subsection (3). +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 228 +Duties of Minister +(5) On receipt of an application, the Minister must, with- +out delay, consider the application and grant or refuse it, +and must notify the person of the decision in writing. +Date of objection if application granted +(6) If an application is granted, the notice of objection is +deemed to have been filed on the day of the decision of +the Minister. +Conditions — grant of application +(7) An application is not to be granted under this section +unless +(a) the application is made within one year after the +expiry of the time limited under this Act for objecting; +and +(b) the person demonstrates that +(i) within the time limited under this Act for object- +ing, the person +(A) was unable to act or to give a mandate to act +in their name, or +(B) had a bona fide intention to object to the as- +sessment, +(ii) given the reasons set out in the application and +the circumstances of the case, it would be just and +equitable to grant the application, and +(iii) the application was made as soon as circum- +stances permitted it to be made. +SUBDIVISION G +Appeal +Extension of time by Tax Court of Canada +99 (1) A person that has made an application under sec- +tion 98 may apply to the Tax Court of Canada to have the +application granted after either +(a) the Minister has refused the application, or +(b) 90 days have elapsed after the day on which the +application was made and the Minister has not noti- +fied the person of the Minister’s decision. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 229 +When application may not be made +(2) No application may be made after the expiry of 30 +days after the day on which the decision referred to in +subsection 98(5) is sent to the person. +How application made +(3) An application must be made by filing in the Registry +of the Tax Court of Canada, in accordance with the Tax +Court of Canada Act, three copies of the documents de- +livered or mailed under subsection 98(3). +Copy to Commissioner +(4) The Tax Court of Canada must send a copy of the ap- +plication to the Commissioner. +Powers of Tax Court of Canada +(5) The Tax Court of Canada may dispose of an applica- +tion by dismissing or granting it and, in granting it, the +Court may impose any terms that it considers just or or- +der that the notice of objection be deemed to be a valid +objection as of the date of the order. +When application to be granted +(6) An application must not be granted under this sec- +tion unless +(a) the application under subsection 98(1) was made +within one year after the expiry of the time limited un- +der this Act for objecting; and +(b) the person demonstrates that +(i) within the time limited under this Act for object- +ing, the person +(A) was unable to act or to give a mandate to act +in their name, or +(B) had a bona fide intention to object to the as- +sessment, +(ii) given the reasons set out in the application un- +der this section and the circumstances of the case, it +would be just and equitable to grant the applica- +tion, and +(iii) the application under subsection 98(1) was +made as soon as circumstances permitted it to be +made. +Appeal to Tax Court of Canada +100 (1) Subject to subsection (2), a person that has filed +a notice of objection to an assessment may appeal to the +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 230 +Tax Court of Canada to have the assessment vacated or a +reassessment made after +(a) the Minister has confirmed the assessment or has +reassessed; or +(b) 180 days have elapsed after the day on which the +notice of objection was filed and the Minister has not +notified the person that the Minister has vacated or +confirmed the assessment or has reassessed. +No appeal +(2) No appeal under subsection (1) may be instituted af- +ter the expiry of 90 days after the day on which notice +that the Minister has reassessed or confirmed the assess- +ment is sent to the person under subsection 97(10). +Amendment of appeal +(3) The Tax Court of Canada may, on any terms that it +sees fit, authorize a person that has instituted an appeal +in respect of a matter to amend the appeal to include any +further assessment in respect of the matter that the per- +son is entitled under this section to appeal. +Extension of time to appeal +101 (1) If no appeal to the Tax Court of Canada under +section 100 has been instituted within the time limited by +that section for doing so, a person may make an applica- +tion to the Tax Court of Canada for an order extending +the time within which an appeal may be instituted, and +the Court may make an order extending the time for ap- +pealing and may impose any terms that it considers just. +Contents of application +(2) An application must set out the reasons why the ap- +peal was not instituted within the time limited under sec- +tion 100 for doing so. +How application made +(3) An application must be made by filing in the Registry +of the Tax Court of Canada, in accordance with the Tax +Court of Canada Act, three copies of the application to- +gether with three copies of the notice of appeal. +Copy to Deputy Attorney General of Canada +(4) The Tax Court of Canada must send a copy of the ap- +plication to the office of the Deputy Attorney General of +Canada. +When order to be made +(5) An order must not be made under this section unless +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 231 +(a) the application is made within one year after the +expiry of the time limited under section 100 for ap- +pealing; and +(b) the person demonstrates that +(i) within the time limited under section 100 for ap- +pealing, the person +(A) was unable to act or to give a mandate to act +in their name, or +(B) had a bona fide intention to appeal, +(ii) given the reasons set out in the application and +the circumstances of the case, it would be just and +equitable to grant the application, +(iii) the application was made as soon as circum- +stances permitted it to be made, and +(iv) there are reasonable grounds for the appeal. +Limitation on appeals to Tax Court of Canada +102 (1) Despite section 100, if a person has filed a notice +of objection to an assessment, the person may appeal to +the Tax Court of Canada to have the assessment vacated, +or a reassessment made, only with respect to +(a) an issue in respect of which the person has com- +plied with subsection 97(2) in the notice and the relief +sought in respect of the issue as specified by the per- +son in the notice; or +(b) an issue described in subsection 97(5) if the person +was not required to file a notice of objection to the as- +sessment that gave rise to the issue. +No appeal if waiver +(2) Despite section 100, a person may not appeal to the +Tax Court of Canada to have an assessment vacated or +varied in respect of an issue for which the right of objec- +tion or appeal has been waived in writing by the person. +Institution of appeals +103 An appeal to the Tax Court of Canada under this Act +must be instituted in accordance with the Tax Court of +Canada Act. +Disposition of appeal +104 The Tax Court of Canada may dispose of an appeal +from an assessment by +(a) dismissing it; or +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 232 +(b) allowing it and +(i) vacating the assessment, or +(ii) referring the assessment back to the Minister +for reconsideration and reassessment. +References to Tax Court of Canada +105 (1) If the Minister and another person agree in +writing that a question arising under this Act, in respect +of any assessment or proposed assessment of the person, +should be determined by the Tax Court of Canada, that +question must be determined by that Court. +Time during consideration not to count +(2) For the purpose of making an assessment of a person +that agreed in writing to the determination of a question, +filing a notice of objection to an assessment or instituting +an appeal from an assessment, the time between the day +on which proceedings are instituted in the Tax Court of +Canada to have a question determined and the day on +which the question is finally determined must not be +counted in the computation of +(a) the four-year period referred to in subsection +96(1); +(b) the period within which a notice of objection to an +assessment may be filed under section 97; or +(c) the period within which an appeal may be institut- +ed under section 100. +Reference of common questions to Tax Court of +Canada +106 (1) If the Minister is of the opinion that a question +arising out of one and the same transaction or occurrence +or series of transactions or occurrences is common to as- +sessments or proposed assessments in respect of two or +more persons, the Minister may apply to the Tax Court of +Canada for a determination of the question. +Contents of application +(2) An application must set out +(a) the question in respect of which the Minister re- +quests a determination; +(b) the names of the persons that the Minister seeks to +have bound by the determination; and +(c) the facts and reasons on which the Minister relies +and on which the Minister based or intends to base as- +sessments of each person named in the application. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 233 +Service +(3) A copy of the application must be served by the Min- +ister on each of the persons named in it and on any other +person that, in the opinion of the Tax Court of Canada, is +likely to be affected by the determination of the question. +Determination by Tax Court of Canada of question +(4) If the Tax Court of Canada is satisfied that a determi- +nation of a question set out in an application will affect +assessments or proposed assessments in respect of two +or more persons that have been served with a copy of the +application and that are named in an order of the Tax +Court of Canada under this subsection, it may +(a) if none of the persons named in the order has ap- +pealed from such an assessment, proceed to determine +the question in any manner that it considers appropri- +ate; or +(b) if one or more of the persons named in the order +has or have appealed, make any order that it considers +appropriate joining a party or parties to that appeal or +those appeals and proceed to determine the question. +Determination final and conclusive +(5) Subject to subsection (6), if a question set out in an +application is determined by the Tax Court of Canada, +the determination is final and conclusive for the purpos- +es of any assessments of persons named by the Court un- +der subsection (4). +Appeal +(6) If a question set out in an application is determined +by the Tax Court of Canada, the Minister or any of the +persons that have been served with a copy of the applica- +tion and that are named in an order of the Court under +subsection (4) may, in accordance with the provisions of +this Act, the Tax Court of Canada Act or the Federal +Courts Act, as they relate to appeals from or applications +for judicial review of decisions of the Tax Court of +Canada, appeal from the determination. +Parties to appeal +(7) The parties that are bound by a determination are +parties to any appeal from the determination. +Time during consideration not counted +(8) For the purpose of making an assessment of a per- +son, filing a notice of objection to an assessment or +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 234 +instituting an appeal from an assessment, the periods de- +scribed in subsection (9) must not be counted in the com- +putation of +(a) the four-year period referred to in subsection +96(1); +(b) the period within which a notice of objection to an +assessment may be filed under section 97; or +(c) the period within which an appeal may be institut- +ed under section 100. +Excluded periods +(9) The period that is not to be counted in the computa- +tion of the periods described in paragraphs (8)(a) to (c) is +the time between the day on which an application that is +made under this section is served on a person under sub- +section (3) and +(a) in the case of a person named in an order of the +Tax Court of Canada under subsection (4), the day on +which the determination becomes final and conclusive +and not subject to any appeal; and +(b) in the case of any other person, the day on which +the person is served with a notice that the person has +not been named in an order of the Tax Court of +Canada under subsection (4). +SUBDIVISION H +Penalties +Failure to file return +107 Every person that fails to file a return (other than an +information return) for a reporting period as and when +required under this Act is liable to a penalty equal to the +sum of +(a) an amount equal to 1% of the total of all amounts +each of which is an amount that is required to be paid +for the reporting period and was not paid on the day +on which the return was required to be filed; and +(b) the amount obtained when one quarter of the +amount determined under paragraph (a) is multiplied +by the number of complete months, not exceeding 12, +from the day on which the return was required to be +filed to the day on which the return is filed. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 235 +Failure to file by electronic transmission +108 In addition to any other penalty under this Act, ev- +ery person that fails to file a return under this Act for a +reporting period as required by subsection 74(3) is liable +to a penalty equal to an amount determined in prescribed +manner. +Failure to register +109 Every person that is required to be registered under +Division 5 of Part 1 but does not apply for registration +under that Division as and when required is liable to a +penalty of $2,000. +Penalty — false statement +110 Despite any other provision of this Act, if a vendor +sells a subject item to a purchaser, if an exemption cer- +tificate applies in respect of the sale in accordance with +section 36, if a declaration referred to in subparagraph +36(1)(b)(ii) is included in the exemption certificate and if +that declaration is false, the following rules apply: +(a) the purchaser is liable, in addition to any other +penalty under this Act, to a penalty equal to the +greater of $1,000 and 150% of the total of +(i) the amount of tax in respect of the subject item +that would have been payable under section 18 if +the exemption certificate had not applied to the +sale, and +(ii) the amount of tax in respect of the subject item +that would have been payable by the purchaser un- +der section 29 if the exemption certificate had not +applied to the sale; and +(b) if the vendor knows, or ought to have known, that +the declaration is false, the purchaser and the vendor +are jointly and severally, or solidarily, liable for the +payment of the penalty under paragraph (a) and any +related interest. +Penalty for false declaration — special import +certificate +111 Despite any other provision of this Act, if a person +imports a subject item, if a special import certificate in +respect of the importation is in effect in accordance with +section 38, if the person, when applying under subsection +38(1) for the special import certificate in respect of the +subject item, made a declaration required under para- +graph 38(2)(a) to be included in the application and if +that declaration is false at the time of importation, the +person is liable to, in addition to any other penalty under +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 236 +this Act, a penalty equal to the greater of $1,000 and +150% of the total of +(a) the amount of tax in respect of the subject item +that would have been payable by the person under sec- +tion 20 if the special import certificate in respect of the +importation had not been issued by the Minister; and +(b) the amount of tax in respect of the subject item +that would have been payable by the person under sec- +tion 30 if the special import certificate in respect of the +importation had not been issued by the Minister. +Failure to apply — tax certificate +112 Every person that is required to apply for a tax cer- +tificate under section 37 and fails to do so as and when +required is liable to a penalty of $1,000. +Failure to notify — tax certificate +113 Every person that is required to provide a notifica- +tion to the Minister under subsection 37(9) and fails to do +so as and when required is liable to a penalty of $1,000. +Penalty — unregistered importer +114 If tax is payable by a person under section 20 and, at +the time the tax became payable, the person was required +to be registered under Division 5 of Part 1 but has not ap- +plied for registration under that Division, the person is li- +able to, in addition to any other penalty under this Act, a +penalty equal to the greater of $1,000 and 50% of the +amount of tax payable under section 20 in respect of the +subject item. +Failure to answer demand +115 Every person that fails to file a return as and when +required under a demand issued under section 77 is li- +able to a penalty of $1,000. +Failure to provide information +116 Every person that fails to provide any information +or record as and when required under this Act is liable to +a penalty of $1,000 for every failure unless, in the case of +information required in respect of another person, a rea- +sonable effort was made by the person to obtain the in- +formation. +Failure to provide information +117 Every person that fails to report an amount pre- +scribed by regulation, or to provide information pre- +scribed by regulation, in a return prescribed by +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 237 +regulation as and when required, or that misstates such +an amount or such information in such a return, is liable +to a penalty, in addition to any other penalty under this +Act, equal to an amount determined in prescribed man- +ner for each such failure or misstatement by the person. +False statements or omissions +118 Every person that knowingly, or under circum- +stances amounting to gross negligence, makes or partici- +pates in, assents to or acquiesces in the making of a false +statement or omission in a return, application, form, cer- +tificate, statement, invoice or answer (each of which is in +this section referred to as a “return”) is liable to a penalty +of the greater of $1,000 and 25% of the total of +(a) if the false statement or omission is relevant to the +determination of an amount payable under this Act by +the person, the amount, if any, by which +(i) the amount payable +exceeds +(ii) the amount that would be payable by the per- +son if the amount payable were determined on the +basis of the information provided in the return, and +(b) if the false statement or omission is relevant to the +determination of a rebate or any other payment that +may be obtained under this Act, the amount, if any, by +which +(i) the amount that would be the rebate or other +payment payable to the person if the rebate or other +payment were determined on the basis of the infor- +mation provided in the return +exceeds +(ii) the amount of the rebate or other payment +payable to the person. +General penalty +119 Every person that fails to comply with any provision +of this Act for which no other penalty is specified is liable +to a penalty of +(a) in the case of a prescribed provision, $100; and +(b) in any other case, $1,000. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 238 +Waiving or cancelling penalties +120 (1) The Minister may, on or before the day that is +10 calendar years after the end of a reporting period of a +person, or on application by the person on or before that +day, waive or cancel all or any portion of any penalty un- +der this Act payable by the person in respect of the re- +porting period. +Interest if amount waived or cancelled +(2) If a person has paid an amount of penalty and the +Minister waives or cancels that amount under subsection +(1), the Minister must pay interest on the amount paid by +the person beginning on the day that is 30 days after the +day on which the Minister received a request in a manner +satisfactory to the Minister to apply that subsection and +ending on the day on which the amount is rebated to the +person. +SUBDIVISION I +Offences and Punishment +Offence for failure to file return or to comply with +demand or order +121 (1) Every person that fails to file or make a return +as and when required under this Act or that fails to com- +ply with an obligation under subsection 88(6) or (9) or +section 90, or an order made under section 126, is guilty +of an offence and, in addition to any penalty otherwise +provided, is liable on summary conviction to a fine of not +less than $2,000 and not more than $40,000 or to impris- +onment for a term not exceeding 12 months, or to both. +Saving +(2) A person that is convicted of an offence under sub- +section (1) for a failure to comply with a provision of this +Act is not liable to pay a penalty under this Act for the +same failure, unless a notice of assessment for the penal- +ty was issued before the information or complaint giving +rise to the conviction was laid or made. +Offences for false or deceptive statement +122 (1) Every person commits an offence that +(a) makes, or participates in, assents to or acquiesces +in the making of, a false or deceptive statement in a +return, application, certificate, statement, document, +record or answer filed or made as required under this +Act; +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 239 +(b) for the purposes of evading payment of any +amount payable under this Act, or obtaining a rebate +or other payment payable under this Act to which the +person is not entitled, +(i) destroys, alters, mutilates, conceals or otherwise +disposes of any records of a person, or +(ii) makes, or assents to or acquiesces in the mak- +ing of, a false or deceptive entry, or omits, or as- +sents to or acquiesces in the omission, to enter a +material particular in the records of a person; +(c) intentionally, in any manner, evades or attempts +to evade compliance with this Act or payment of an +amount payable under this Act; +(d) intentionally, in any manner, obtains or attempts +to obtain a rebate or other payment payable under this +Act to which the person is not entitled; or +(e) conspires with any person to commit an offence +described in any of paragraphs (a) to (d). +Punishment +(2) Every person that commits an offence under subsec- +tion (1) is guilty of an offence punishable on summary +conviction and, in addition to any penalty otherwise pro- +vided, is liable to +(a) a fine of not less than 50%, and not more than +200%, of the amount payable that was sought to be +evaded, or of the rebate or other payment sought, or, if +the amount that was sought to be evaded cannot be as- +certained, a fine of not less than $2,000 and not more +than $40,000; +(b) imprisonment for a term not exceeding two years; +or +(c) both a fine referred to in paragraph (a) and im- +prisonment for a term not exceeding two years. +Prosecution on indictment +(3) Every person that is charged with an offence de- +scribed in subsection (1) may, at the election of the Attor- +ney General of Canada, be prosecuted on indictment and, +if convicted, is, in addition to any penalty otherwise pro- +vided, liable to +(a) a fine of not less than 100%, and not more than +200%, of the amount payable that was sought to be +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 240 +evaded, or of the rebate or other payment sought, or, if +the amount that was sought to be evaded cannot be as- +certained, a fine of not less than $5,000 and not more +than $100,000; +(b) imprisonment for a term not exceeding five years; +or +(c) both a fine referred to in paragraph (a) and im- +prisonment for a term not exceeding five years. +Penalty on conviction +(4) A person that is convicted of an offence under this +section is not liable to pay a penalty imposed under this +Act for the same evasion or attempt unless a notice of as- +sessment for that penalty was issued before the informa- +tion or complaint giving rise to the conviction was laid or +made. +Stay of appeal +(5) If, in any appeal under this Act, substantially the +same facts are at issue as those that are at issue in a pros- +ecution under this section, the Minister may file a stay of +proceedings with the Tax Court of Canada and, upon that +filing, the proceedings before the Tax Court of Canada +are stayed pending a final determination of the outcome +of the prosecution. +Definition of confidential information +123 (1) In this section, confidential information has +the same meaning as in subsection 91(1). +Offence — confidential information +(2) A person is guilty of an offence and liable on summa- +ry conviction to a fine not exceeding $5,000 or to impris- +onment for a term not exceeding 12 months, or to both, if +that person +(a) contravenes subsection 91(2); or +(b) knowingly contravenes an order made under sub- +section 91(12). +Offence — confidential information +(3) Every person to whom confidential information has +been provided for a particular purpose under subsection +91(6) and that for any other purpose knowingly uses, pro- +vides to any person, allows the provision to any person +of, or allows any person access to, that information is +guilty of an offence and liable on summary conviction to +a fine not exceeding $5,000 or to imprisonment for a +term not exceeding 12 months, or to both. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 241 +Failure to pay tax +124 Every person that intentionally fails to pay an +amount of tax as and when required under this Act is +guilty of an offence punishable on summary conviction +and, in addition to any penalty or interest otherwise pro- +vided, is liable to +(a) a fine not exceeding the aggregate of $1,000 and an +amount equal to 50% of the amount of tax that should +have been paid; +(b) imprisonment for a term not exceeding 12 +months; or +(c) both a fine referred to in paragraph (a) and im- +prisonment for a term not exceeding 12 months. +General offence +125 Every person that fails to comply with any provision +of this Act for which no other offence is specified in this +Act is guilty of an offence punishable on summary con- +viction and liable to a fine of not more than $100,000 or +to imprisonment for a term of not more than 12 months, +or to both. +Compliance orders +126 If a person is convicted by a court of an offence for a +failure to comply with a provision of this Act, the court +may make any order that it deems appropriate to enforce +compliance with the provision. +Officers of corporations, etc. +127 If a person other than an individual commits an of- +fence under this Act, every officer, director or representa- +tive of the person that directed, authorized, assented to, +acquiesced in or participated in the commission of the of- +fence is a party to and guilty of the offence and liable on +conviction to the punishment provided for the offence, +whether or not the person has been prosecuted or con- +victed. +No power to decrease punishment +128 Despite the Criminal Code or any other law, the +court has, in any prosecution or proceeding under this +Act, neither the power to impose less than the minimum +fine fixed under this Act nor the power to suspend sen- +tence. +Information or complaint +129 (1) An information or complaint under this Act may +be laid or made by any officer of the Canada Revenue +Agency, by a member of the Royal Canadian Mounted +Police or by any person authorized to do so by the +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 242 +Minister and, if an information or complaint purports to +have been laid or made under this Act, it is deemed to +have been laid or made by a person so authorized by the +Minister and must not be called into question for lack of +authority of the informant or complainant, except by the +Minister or a person acting for the Minister or for Her +Majesty in right of Canada. +Two or more offences +(2) An information or complaint in respect of an offence +under this Act may be for one or more offences, and no +information, complaint, warrant, conviction or other pro- +ceeding in a prosecution under this Act is objectionable +or insufficient by reason of the fact that it relates to two +or more offences. +Territorial jurisdiction +(3) An information or complaint in respect of an offence +under this Act may be heard, tried or determined by any +court having territorial jurisdiction where the accused is +resident, carrying on a commercial activity, found, appre- +hended or in custody, despite that the matter of the infor- +mation or complaint did not arise within that territorial +jurisdiction. +Limitation of prosecutions +(4) No proceeding by way of summary conviction in re- +spect of an offence under this Act may be instituted more +than five years after the day on which the subject matter +of the proceedings arose, unless the prosecutor and the +defendant agree that they may be instituted after the five +years. +SUBDIVISION J +Inspections +Definition of dwelling-house +130 (1) In this section, dwelling-house means the +whole or any part of a building or structure that is kept or +occupied as a permanent or temporary residence and in- +cludes +(a) a building within the curtilage of a dwelling-house +that is connected to it by a doorway or by a covered +and enclosed passageway; and +(b) a unit that is designed to be mobile and to be used +as a permanent or temporary residence and that is be- +ing used as such a residence. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 243 +Inspections +(2) A person authorized by the Minister to do so may, at +all reasonable times and for any purpose related to the +administration or enforcement of this Act, inspect, audit +or examine the records, processes, property or premises +of a person that may be relevant in determining the obli- +gations of that or any other person under this Act, or the +amount of any rebate to which that or any other person is +entitled under this Act and whether that person or any +other person is in compliance with this Act. +Powers of authorized person +(3) Subject to subsection (4), the authorized person may, +at all reasonable times, for any purpose related to the ad- +ministration of enforcement of this Act +(a) enter any place in which the authorized person +reasonably believes the person keeps or should keep +records, carries on any activity to which this Act ap- +plies or does anything in relation to that activity; +(b) require any person to give to the authorized per- +son all reasonable assistance, to answer all proper +questions relating to the administration or enforce- +ment of this Act and +(i) to attend with the authorized person at a place +designated by the authorized person, or by video- +conference or by another form of electronic com- +munication, and to answer the questions orally, and +(ii) to answer the questions in writing, in any form +specified by the authorized person; and +(c) require any person to give the authorized person +all reasonable assistance with anything the authorized +person is authorized to do under this Act. +Prior authorization +(4) If any place referred to in subsection (3) is a +dwelling-house, the authorized person may not enter that +dwelling-house without the consent of the occupant, ex- +cept under the authority of a warrant issued under sub- +section (5). +Warrant to enter dwelling-house +(5) A judge may issue a warrant authorizing a person to +enter a dwelling-house subject to the conditions specified +in the warrant if, on ex parte application by the Minister, +a judge is satisfied by information on oath that +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 244 +(a) there are reasonable grounds to believe that the +dwelling-house is a place referred to in subsection (3); +(b) entry into the dwelling-house is necessary for any +purpose related to the administration or enforcement +of this Act; and +(c) entry into the dwelling-house has been, or there +are reasonable grounds to believe that entry will be, +refused. +Orders if entry not authorized +(6) If the judge is not satisfied that entry into the +dwelling-house is necessary for any purpose related to +the administration or enforcement of this Act, the judge +may, to the extent that access was or may be expected to +be refused and that a record or property is or may be ex- +pected to be kept in the dwelling-house, +(a) order the occupant of the dwelling-house to pro- +vide a person with reasonable access to any record or +property that is or should be kept in the dwelling- +house; and +(b) make any other order that is appropriate in the +circumstances to carry out the purposes of this Act. +Compliance order +131 (1) On summary application by the Minister, a +judge may, despite section 126, order a person to provide +any access, assistance, information or record sought by +the Minister under section 90 or 130 if the judge is satis- +fied that the person was required under section 90 or 130 +to provide the access, assistance, information or record +and did not do so. +Notice required +(2) An application under subsection (1) is not to be heard +before the end of five clear days from the day on which +the notice of application is served on the person against +which the order is sought. +Judge may impose conditions +(3) The judge making an order under subsection (1) may +impose any conditions in respect of the order that the +judge considers appropriate. +Contempt of court +(4) If a person fails or refuses to comply with an order, a +judge may find the person in contempt of court and the +person is subject to the processes and the punishments of +the court to which the judge is appointed. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 245 +Appeal +(5) An order by a judge under subsection (1) may be ap- +pealed to a court having appellate jurisdiction over deci- +sions of the court to which the judge is appointed. An ap- +peal does not suspend the execution of the order unless it +is so ordered by a judge of the court to which the appeal +is made. +Search warrant +132 (1) A judge may, on ex parte application by the +Minister, issue a warrant authorizing any person named +in the warrant to enter and search any building, recepta- +cle or place for any record or thing that may afford evi- +dence of the commission of an offence under this Act and +to seize the record or thing and, as soon as is practicable, +bring it before, or make a report in respect of the record +or thing to, the judge or, if that judge is unable to act, an- +other judge of the same court, to be dealt with by the +judge in accordance with this section. +Evidence on oath +(2) An application under subsection (1) must be support- +ed by information on oath establishing the facts on which +the application is based. +Issue of warrant +(3) A judge may issue a warrant referred to in subsection +(1) if the judge is satisfied that there are reasonable +grounds to believe that +(a) an offence under this Act has been committed; +(b) a record or thing that may afford evidence of the +commission of the offence is likely to be found; and +(c) the building, receptacle or place specified in the +application is likely to contain a record or thing re- +ferred to in paragraph (b). +Contents of warrant +(4) A warrant issued under subsection (1) must refer to +the offence for which it is issued, identify the building, +receptacle or place to be searched and the person that is +alleged to have committed the offence, and it must be +reasonably specific as to any record or thing to be +searched for and seized. +Seizure +(5) Any person that executes a warrant issued under sub- +section (1) may seize, in addition to the record or thing +referred to in that subsection, any other record or thing +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 246 +that the person believes on reasonable grounds affords +evidence of the commission of an offence under this Act +and must, as soon as is practicable, bring the record or +thing before, or make a report in respect of the record or +thing, the judge that issued the warrant or, if that judge is +unable to act, another judge of the same court, to be dealt +with by the judge in accordance with this section. +Retention +(6) Subject to subsection (7), if any record or thing seized +under subsection (1) or (5) is brought before a judge or a +report in respect of the record or thing is made to a +judge, the judge must, unless the Minister waives reten- +tion, order that it be retained by the Minister, that must +take reasonable care to ensure that it is preserved until +the conclusion of any investigation into the offence in re- +lation to which the record or thing was seized or until it is +required to be produced for the purposes of a criminal +proceeding. +Return of records or things seized +(7) If any record or thing seized under subsection (1) or +(5) is brought before a judge or a report in respect of the +record or thing is made to a judge, the judge may, on the +judge’s own motion or on summary application by a per- +son with an interest in the record or thing on three clear +days notice of application to the Deputy Attorney General +of Canada, order that the record or thing be returned to +the person from which it was seized or the person that is +otherwise legally entitled to the record or thing, if the +judge is satisfied that the record or thing +(a) will not be required for an investigation or a crimi- +nal proceeding; or +(b) was not seized in accordance with the warrant or +this section. +Access and copies +(8) The person from which any record or thing is seized +under this section is entitled, at all reasonable times and +subject to any reasonable conditions that may be im- +posed by the Minister, to inspect the record or thing and, +in the case of a document, to obtain one copy of the +record at the expense of the Minister. +Definition of foreign-based information or record +133 (1) For the purposes of this section, foreign-based +information or record means any information or record +that is available or located outside Canada and that may +be relevant to the administration or enforcement of this +Act. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 247 +Requirement to provide foreign-based information +(2) Despite any other provision of this Act, the Minister +may, by a notice served or sent in accordance with sub- +section (4), require a person resident in Canada or a non- +resident person that carries on business in Canada to +provide any foreign-based information or record. +Notice +(3) A notice referred to in subsection (2) must set out +(a) a reasonable period of time of not less than 90 days +for the provision of the information or record; +(b) a description of the information or record being +sought; and +(c) the consequences under subsection (9) to the per- +son of the failure to provide the information or record +being sought within the period of time set out in the +notice. +Notice +(4) A notice referred to in subsection (2) may be +(a) served personally; +(b) sent by confirmed delivery service; or +(c) sent electronically to a bank or credit union that +has provided written consent to receive notices under +subsection (2) electronically. +Review of foreign information requirement +(5) If a person is served or sent a notice of a requirement +under subsection (2), the person may, within 90 days af- +ter the day on which the notice was served or sent, apply +to a judge for a review of the requirement. +Powers on review +(6) On hearing an application under subsection (5) in re- +spect of a requirement, a judge may +(a) confirm the requirement; +(b) vary the requirement if the judge is satisfied that it +is appropriate in the circumstances; or +(c) set aside the requirement if the judge is satisfied +that it is unreasonable. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 248 +Related person +(7) For the purposes of subsection (6), a requirement to +provide information or a record is not to be considered to +be unreasonable because the information or record is un- +der the control of, or available to, a non-resident person +that is not controlled by the person served with the notice +of the requirement under subsection (2) if that person is +related to the non-resident person. +Time during consideration not to count +(8) The period of time between the day an application for +the review of a requirement is made under subsection (5) +and the day the review is decided must not be counted in +the computation of +(a) the period of time set out in the notice of the re- +quirement; and +(b) the period of time within which an assessment +may be made under section 92 or 93. +Consequence of failure +(9) If a person fails to comply substantially with a notice +served under subsection (2) and if the notice is not set +aside under subsection (5), any court having jurisdiction +in a civil proceeding relating to the administration or en- +forcement of this Act must, on motion of the Minister, +prohibit the introduction by that person of any foreign- +based information or record covered by that notice. +Copies +134 If any record is seized, inspected, audited, examined +or provided under any of sections 81, 90 and 130 to 132, +the person by whom it is seized, inspected, audited or ex- +amined or to whom it is provided or any officer of the +Canada Revenue Agency may make or cause to be made +one or more copies of it and, in the case of an electronic +record, make or cause to be made a print-out of the elec- +tronic record, and any record purporting to be certified +by the Minister or an authorized person to be a copy of +the record, or to be a print-out of an electronic record, +made under this section is evidence of the nature and +content of the original record and has the same probative +force as the original record would have if it were proven +in the ordinary way. +Compliance +135 Every person must, unless the person is unable to +do so, do everything the person is required to do by or +pursuant to any of sections 90 and 130 to 134 and no +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 249 +person is to, physically or otherwise, do or attempt to do +any of the following: +(a) interfere with, hinder or molest any official as de- +fined in section 91 doing anything the official is autho- +rized to do under this Act; or +(b) prevent any official from doing anything the offi- +cial is authorized to do under this Act. +Information respecting non-resident persons +136 Every person that is liable, at any time in a calendar +year, to pay an amount of tax under this Act must, in re- +spect of each non-resident person with which it was not, +in prescribed circumstances, dealing at arm’s length at +any time in the year, file with the Minister, within six +months after the end of the year, prescribed information +for the year in respect of transactions with that person. +SUBDIVISION K +Collection +Definitions +137 (1) The following definitions apply in this section. +action means an action to collect a tax debt of a person +and includes a proceeding in a court and anything done +by the Minister under any of sections 141 to 146. (action) +legal representative of a person means a trustee in +bankruptcy, an assignee, a liquidator, a curator, a receiv- +er of any kind, a trustee, an heir, an administrator, an ex- +ecutor, a liquidator of a succession, a committee, or any +other like person, administering, winding up, controlling +or otherwise dealing in a representative or fiduciary ca- +pacity with any property, business, commercial activity +or estate or succession that belongs or belonged to, or +that is or was held for the benefit of, the person or the +person’s estate or succession. (représentant légal) +tax debt means any amount payable by a person under +this Act. (dette fiscale) +Debts to Her Majesty +(2) A tax debt is a debt due to Her Majesty in right of +Canada and is recoverable as such in the Federal Court or +any other court of competent jurisdiction or in any other +manner provided under this Act. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 250 +Court proceedings +(3) The Minister may not commence a proceeding in a +court to collect a tax debt of a person in respect of an +amount that may be assessed under this Act, unless when +the proceeding is commenced the person has been or +may be assessed for that amount. +No actions after limitation period +(4) The Minister may not commence an action to collect +a tax debt after the end of the limitation period for the +collection of the tax debt. +Limitation period +(5) The limitation period for the collection of a tax debt +of a person +(a) begins +(i) if a notice of assessment in respect of the tax +debt, or a notice referred to in subsection 147(1) in +respect of the tax debt, is sent to or served on the +person, on the last day on which one of those no- +tices is sent or served, and +(ii) if no notice referred to in subparagraph (i) in +respect of the tax debt was sent or served, on the +earliest day on which the Minister can commence +an action to collect that tax debt; and +(b) ends, subject to subsection (9), on the day that is +10 years after the day on which it begins. +Limitation period restarted +(6) The limitation period described in subsection (5) for +the collection of a tax debt of a person restarts (and ends, +subject to subsection (9), on the day that is 10 years after +the day on which it restarts) on any day, before it would +otherwise end, on which +(a) the person acknowledges the tax debt in accor- +dance with subsection (7); +(b) all or part of the tax debt is deemed under section +70 to have been paid; +(c) the Minister commences an action to collect the +tax debt; or +(d) the Minister assesses, under this Act, another per- +son in respect of the tax debt. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 251 +Acknowledgement of tax debts +(7) A person acknowledges a tax debt if the person +(a) promises, in writing, to pay the tax debt; +(b) makes a written acknowledgement of the tax debt, +whether or not a promise to pay can be inferred from +the acknowledgement and whether or not it contains a +refusal to pay; or +(c) makes a payment, including a purported payment +by way of a negotiable instrument that is dishonoured, +on account of the tax debt. +Agent or mandatary or legal representative +(8) For the purposes of this section, an acknowledge- +ment made by a person’s agent or mandatary or legal +representative has the same effect as if it were made by +the person. +Extension of limitation period +(9) In computing the day on which a limitation period +ends, there must be added the number of days on which +one or more of the following is the case: +(a) the Minister has postponed collection action +against the person under subsection (12) in respect of +the tax debt; +(b) the Minister has accepted and holds security in +lieu of payment of the tax debt; +(c) if the person was resident in Canada on the appli- +cable date described in paragraph (5)(a) in respect of +the tax debt, the person is non-resident; +(d) the Minister may not, because of any of subsec- +tions 139(2) to (5), take any of the actions described in +subsection 139(1) in respect of the tax debt; or +(e) an action that the Minister may otherwise take in +respect of the tax debt is restricted or not permitted +under any provision of the Bankruptcy and Insolven- +cy Act, of the Companies’ Creditors Arrangement Act +or of the Farm Debt Mediation Act. +Assessment before collection +(10) The Minister may not take any collection action un- +der sections 141 to 146 in respect of any amount payable +by a person that may be assessed under this Act, other +than interest under section 82, unless the amount has +been assessed. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 252 +Payment of remainder +(11) If the Minister sends a notice of assessment to a +person, any amount assessed then remaining unpaid is +payable forthwith by the person to the Receiver General. +Minister may postpone collection +(12) The Minister may, subject to any terms and condi- +tions that the Minister may stipulate, postpone collection +action against a person in respect of all or any part of any +amount assessed that is the subject of a dispute between +the Minister and the person. +Interest on judgments +(13) If a judgment is obtained for any amount payable +under this Act, including a certificate registered under +section 141, the provisions of this Act by which interest is +payable for a failure to pay an amount apply, with any +modifications that the circumstances require, to the fail- +ure to pay the judgment debt, and the interest is recover- +able in like manner as the judgment debt. +Litigation costs +(14) If an amount is payable by a person to Her Majesty +in right of Canada because of an order, judgment or +award of a court in respect of the costs of litigation relat- +ing to a matter to which this Act applies, sections 138 and +141 to 147 apply to the amount as if it were payable under +this Act. +Security +138 (1) The Minister may, if the Minister considers it +advisable, accept security in an amount and a form satis- +factory to the Minister for the payment of any amount +that is or may become payable under this Act. +Surrender of excess security +(2) If a person that has given security, or on whose be- +half security has been given, under this section requests +in writing that the Minister surrender the security or any +part of it, the Minister must surrender the security to the +extent that its value exceeds, at the time the request is re- +ceived by the Minister, the amount that is sought to be +secured. +Collection restrictions +139 (1) If a person is liable for the payment of an +amount under this Act, the Minister must not, for the +purpose of collecting the amount, take any of the follow- +ing actions until the end of 90 days after the date of a +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 253 +notice of assessment under this Act in respect of the +amount: +(a) commence legal proceedings in a court; +(b) certify the amount under section 141; +(c) require a person to make a payment under subsec- +tion 142(1); +(d) require an institution or a person to make a pay- +ment under subsection 142(2); +(e) require a person to turn over moneys under sub- +section 145(1); or +(f) give a notice, issue a certificate or make a direction +under subsection 146(1). +No action after service of notice of objection +(2) If a person has served a notice of objection under this +Act to an assessment of an amount payable under this +Act, the Minister must not, for the purpose of collecting +the amount in controversy, take any of the actions de- +scribed in subsection (1) until the end of 90 days after the +date of the notice to the person that the Minister has con- +firmed or varied the assessment. +No action after making appeal to Tax Court of Canada +(3) If a person has appealed to the Tax Court of Canada +from an assessment of an amount payable under this Act, +the Minister must not, for the purpose of collecting the +amount in controversy, take any of the actions described +in subsection (1) before the earlier of the day on which a +copy of the decision of the Court is mailed to the person +and the day on which the person discontinues the appeal. +No action pending determination by Tax Court of +Canada +(4) If a person has agreed under subsection 105(1) that a +question should be determined by the Tax Court of +Canada, or if a person is served with a copy of an applica- +tion made under subsection 106(1) to that Court for the +determination of a question, the Minister must not take +any of the actions described in subsection (1) for the pur- +pose of collecting that part of an amount assessed, the li- +ability for payment of which could be affected by the de- +termination of the question, before the day on which the +question is determined by the Court. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 254 +Action after judgment +(5) Despite any other provision in this section, if a per- +son has served a notice of objection under this Act to an +assessment or has appealed to the Tax Court of Canada +from an assessment and agrees in writing with the Minis- +ter to delay proceedings on the objection or appeal, as the +case may be, until judgment has been given in another +action before the Tax Court of Canada, the Federal Court +of Appeal or the Supreme Court of Canada in which the +issue is the same or substantially the same as that raised +in the objection or appeal of the person, the Minister may +take any of the actions described in subsection (1) for the +purpose of collecting the amount assessed, or a part of it, +determined in a manner consistent with the judgment of +the Court in the other action at any time after the Minis- +ter notifies the person in writing that the judgment has +been given by the Court in the other action. +Collection of large amounts +(6) Despite subsections (1) to (5), if, at any time, the total +of all amounts that a person has been assessed under this +Act and that remain unpaid exceeds $1,000,000, the Min- +ister may collect up to 50% of the total. +Over $10,000,000 — security +140 (1) The Minister may, by sending a notice to a per- +son, require security in a form satisfactory to the Minis- +ter and in an amount up to a specified amount that is the +greater of zero dollars and the amount that is determined +by the formula +[(A/2) – B] – $10,000,000 +where +A +is the total of all amounts, each of which is an +amount that the person has been assessed under this +Act in respect of which a portion remains unpaid; +and +B +is the greater of zero dollars and the amount that is +determined by the formula +C – (D/2) +where +C +is the total of all amounts that the person has +paid against the amount determined for A, and +D +is the amount determined for A. +When security to be given +(2) The security required under subsection (1) +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 255 +(a) must be given to the Minister not later than 60 +days after the day on which the Minister required the +security; and +(b) must be in a form satisfactory to the Minister. +Failure to comply +(3) Despite subsections 139(1) to (5), the Minister may +collect an amount equivalent to the amount of security +that was required under subsection (1) if the security re- +quired under that subsection is not given to the Minister +as set out in this section. +Certificates +141 (1) Any amount payable by a person (in this section +referred to as the “debtor”) under this Act that has not +been paid as and when required under this Act may be +certified by the Minister as an amount payable by the +debtor. +Registration in court +(2) On production to the Federal Court, a certificate +made under subsection (1) in respect of a debtor must be +registered in the Court and when so registered has the +same effect, and all proceedings may be taken on the cer- +tificate, as if it were a judgment obtained in the Court +against the debtor for a debt in the amount certified plus +interest on the amount as provided under this Act to the +day of payment and, for the purposes of those proceed- +ings, the certificate is deemed to be a judgment of the +Court against the debtor for a debt due to Her Majesty in +right of Canada and enforceable as such. +Costs +(3) All reasonable costs and charges incurred or paid for +the registration in the Federal Court of a certificate made +under subsection (1) or in respect of any proceedings tak- +en to collect the amount certified are recoverable in like +manner as if they had been included in the amount certi- +fied in the certificate when it was registered. +Charge on property +(4) A document issued by the Federal Court evidencing a +registered certificate in respect of a debtor, a writ of that +Court issued pursuant to the certificate or any notifica- +tion of the document or writ (which document, writ or +notification is in this section referred to as a “memorial”) +may be filed, registered or otherwise recorded for the +purpose of creating a charge, lien or priority on, or a +binding interest in property in a province, or any interest +in, or for civil law any right in, such property, held by the +debtor, in the same manner as a document evidencing +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 256 +(a) a judgment of the superior court of the province +against a person for a debt owing by the person, or +(b) an amount payable or required to be remitted by a +person in the province in respect of a debt owing to +Her Majesty in right of the province +may be filed, registered or otherwise recorded in accor- +dance with the law of the province to create a charge, lien +or priority on, or a binding interest in, the property or in- +terest. +Creation of charge +(5) If a memorial has been filed, registered or otherwise +recorded under subsection (4), +(a) a charge, lien or priority is created on, or a binding +interest is created in, property in the province, or any +interest in, or for civil law any right in, such property, +held by the debtor, or +(b) such property, or interest or right in the property, +is otherwise bound, +in the same manner and to the same extent as if the +memorial were a document evidencing a judgment re- +ferred to in paragraph (4)(a) or an amount referred to in +paragraph (4)(b), and the charge, lien, priority or binding +interest created is subordinate to any charge, lien, priori- +ty or binding interest in respect of which all steps neces- +sary to make it effective against other creditors were tak- +en before the time the memorial was filed, registered or +otherwise recorded. +Proceedings in respect of memorial +(6) If a memorial is filed, registered or otherwise record- +ed in a province under subsection (4), proceedings may +be taken in the province in respect of the memorial, in- +cluding proceedings +(a) to enforce payment of the amount evidenced by +the memorial, interest on the amount and all costs and +charges paid or incurred in respect of +(i) the filing, registration or other recording of the +memorial, and +(ii) proceedings taken to collect the amount, +(b) to renew or otherwise prolong the effectiveness of +the filing, registration or other recording of the memo- +rial, +(c) to cancel or withdraw the memorial wholly or in +respect of any of the property, or interests or rights, +affected by the memorial, or +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 257 +(d) to postpone the effectiveness of the filing, registra- +tion or other recording of the memorial in favour of +any right, charge, lien or priority that has been or is +intended to be filed, registered or otherwise recorded +in respect of any property, or interest or rights, affect- +ed by the memorial, +in the same manner and to the same extent as if the +memorial were a document evidencing a judgment re- +ferred to in paragraph (4)(a) or an amount referred to in +paragraph (4)(b), except that, if in any such proceeding +or as a condition precedent to any such proceeding, any +order, consent or ruling is required under the law of the +province to be made or given by the superior court of the +province or by a judge or official of the court, a like order, +consent or ruling may be made or given by the Federal +Court or by a judge or official of the Federal Court and, +when so made or given, has the same effect for the pur- +poses of the proceeding as if it were made or given by the +superior court of the province or by a judge or official of +the court. +Presentation of documents +(7) If +(a) a memorial is presented for filing, registration or +other recording under subsection (4), or a document +relating to the memorial is presented for filing, regis- +tration or other recording for the purpose of any pro- +ceeding described in subsection (6), to any official in +the land registry system, personal property or movable +property registry system, or other registry system, of a +province, or +(b) access is sought to any person, place or thing in a +province to make the filing, registration or other +recording, +the memorial or document must be accepted for filing, +registration or other recording or the access must be +granted, as the case may be, in the same manner and to +the same extent as if the memorial or document relating +to the memorial were a document evidencing a judgment +referred to in paragraph (4)(a) or an amount referred to +in paragraph (4)(b) for the purpose of a like proceeding, +except that, if the memorial or document is issued by the +Federal Court or signed or certified by a judge or official +of the Court, any affidavit, declaration or other evidence +required under the law of the province to be provided +with or to accompany the memorial or document in the +proceedings is deemed to have been provided with or to +have accompanied the memorial or document as so re- +quired. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 258 +Prohibition — sale, etc., without consent +(8) Despite any law of Canada or of a province, a sheriff +or other person must not, without the written consent of +the Minister, sell or otherwise dispose of any property or +publish any notice or otherwise advertise in respect of +any sale or other disposition of any property pursuant to +any process issued or charge, lien, priority or binding in- +terest created in any proceeding to collect an amount cer- +tified in a certificate made under subsection (1), interest +on the amount or costs. However, if that consent is sub- +sequently given, any property that would have been af- +fected by that process, charge, lien, priority or binding +interest if the Minister’s consent had been given at the +time that process was issued or the charge, lien, priority +or binding interest was created, as the case may be, is +bound, seized, attached, charged or otherwise affected as +it would be if that consent had been given at the time that +process was issued or the charge, lien, priority or binding +interest was created, as the case may be. +Completion of notices, etc. +(9) If information required to be set out by any sheriff or +other person in a minute, notice or document required to +be completed for any purpose cannot, because of subsec- +tion (8), be so set out without the written consent of the +Minister, the sheriff or other person must complete the +minute, notice or document to the extent possible with- +out that information and, when that consent of the Min- +ister is given, a further minute, notice or document set- +ting out all the information must be completed for the +same purpose, and the sheriff or other person, having +complied with this subsection, is deemed to have com- +plied with this Act, regulation or rule requiring the infor- +mation to be set out in the minute, notice or document. +Application for order +(10) A sheriff or other person that is unable, because of +subsection (8) or (9), to comply with any law or rule of +court is bound by any order made by a judge of the Fed- +eral Court, on an ex parte application by the Minister, for +the purpose of giving effect to the proceeding, charge, +lien, priority or binding interest. +Secured claims +(11) If a charge, lien, priority or binding interest created +under subsection (5) by filing, registering or otherwise +recording a memorial under subsection (4) is registered +in accordance with subsection 87(1) of the Bankruptcy +and Insolvency Act, it is deemed +(a) to be a claim that is secured by a security and that, +subject to subsection 87(2) of that Act, ranks as a se- +cured claim under that Act; and +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 259 +(b) to also be a claim referred to in paragraph 86(2)(a) +of that Act. +Details in certificates and memorials +(12) Despite any law of Canada or of a province, in any +certificate in respect of a debtor, any memorial evidenc- +ing a certificate or any writ or document issued for the +purpose of collecting an amount certified, it is sufficient +for all purposes +(a) to set out, as the amount payable by the debtor, +the total of amounts payable by the debtor without +setting out the separate amounts making up that total; +and +(b) to refer to the rate of interest or penalty to be +charged on the separate amounts making up the +amount payable in general terms +(i) in the case of interest, as interest at the specified +rate under this Act applicable from time to time on +amounts payable to the Receiver General, without +indicating the specific rates of interest to be +charged on each of the separate amounts or to be +charged for any period, and +(ii) in the case of a penalty, the penalty calculated +under section 107 on amounts payable to the Re- +ceiver General. +Garnishment +142 (1) If the Minister has knowledge or suspects that a +person is, or will be within one year, liable to make a pay- +ment to another person that is liable to pay an amount +under this Act (in this section referred to as a “debtor”), +the Minister may, by notice in writing, require the person +to pay without delay, if the money is immediately +payable, and in any other case, as and when the money is +payable, the money otherwise payable to the debtor in +whole or in part to the Receiver General on account of +the debtor’s liability under this Act. +Garnishment of loans or advances +(2) Without limiting the generality of subsection (1), if +the Minister has knowledge or suspects that within 90 +days +(a) a bank, credit union, trust company or other simi- +lar person (in this section referred to as an “institu- +tion”) will loan or advance money to, or make a pay- +ment on behalf of, or make a payment in respect of a +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 260 +negotiable instrument issued by, a debtor that is in- +debted to the institution and that has granted security +in respect of the indebtedness, or +(b) a person, other than an institution, will loan or ad- +vance money to, or make a payment on behalf of, a +debtor that the Minister knows or suspects +(i) is employed by, or is engaged in providing ser- +vices or property to, that person or was or will be, +within 90 days, so employed or engaged, or +(ii) if that person is a corporation, is not dealing at +arm’s length with that person, +the Minister may, by notice in writing, require the insti- +tution or person, as the case may be, to pay in whole or in +part to the Receiver General on account of the debtor’s li- +ability under this Act the money that would otherwise be +so loaned, advanced or paid. +Effect of receipt +(3) A receipt issued by the Minister for money paid as re- +quired under this section is a good and sufficient dis- +charge of the original liability to the extent of the pay- +ment. +Effect of requirement +(4) If the Minister has, under this section, required a +person to pay to the Receiver General on account of the +liability under this Act of a debtor money otherwise +payable by the person to the debtor as interest, rent, re- +muneration, a dividend, an annuity or other periodic +payment, the requirement applies to all such payments to +be made by the person to the debtor until the liability un- +der this Act is satisfied and operates to require payments +to the Receiver General out of each such payment of any +amount that is stipulated by the Minister in a notice in +writing. +Failure to comply +(5) Every person that fails to comply with a requirement +under subsection (1) or (4) is liable to pay to Her Majesty +in right of Canada an amount equal to the amount that +the person was required under that subsection to pay to +the Receiver General. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 261 +Failure to comply +(6) Every institution or person that fails to comply with a +requirement under subsection (2) with respect to money +to be loaned, advanced or paid is liable to pay to Her +Majesty in right of Canada an amount equal to the lesser +of +(a) the total of money so loaned, advanced or paid, +and +(b) the amount that the institution or person was re- +quired under that subsection to pay to the Receiver +General. +Assessment +(7) The Minister may assess any person for any amount +payable under this section by the person to the Receiver +General and, if the Minister sends a notice of assessment, +sections 72 and 92 to 106 apply with any modifications +that the circumstances require. +Time limit +(8) An assessment of an amount payable under this sec- +tion by a person to the Receiver General is not to be +made more than four years after the notice from the Min- +ister requiring the payment was received by the person. +Effect of payment as required +(9) If an amount that would otherwise have been ad- +vanced, loaned or paid to or on behalf of a debtor is paid +by a person to the Receiver General in accordance with a +notice from the Minister issued under this section or with +an assessment under subsection (7), the person is +deemed for all purposes to have advanced, loaned or paid +the amount to or on behalf of the debtor. +Recovery by deduction or set-off +143 If a person is indebted to Her Majesty in right of +Canada under this Act, the Minister may require the re- +tention by way of deduction or set-off of any amount that +the Minister may specify out of any amount that may be +or become payable to that person by Her Majesty in right +of Canada. +Acquisition of debtor’s property +144 For the purpose of collecting debts owed by a per- +son to Her Majesty in right of Canada under this Act, the +Minister may purchase or otherwise acquire any interest +in, or for civil law any right in, the person’s property that +the Minister is given a right to acquire in legal proceed- +ings or under a court order or that is offered for sale or +redemption and may dispose of any interest or right so +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 262 +acquired in any manner that the Minister considers rea- +sonable. +Money seized from debtor +145 (1) If the Minister has knowledge or suspects that a +person is holding money that was seized by a police offi- +cer in the course of administering or enforcing the crimi- +nal law of Canada from another person that is liable to +pay any amount under this Act (in this section referred to +as the “debtor”) and that is restorable to the debtor, the +Minister may in writing require the person to turn over +the money otherwise restorable to the debtor, in whole or +in part, to the Receiver General on account of the +debtor’s liability under this Act. +Receipt issued by Minister +(2) A receipt issued by the Minister for money turned +over as required under this section is a good and suffi- +cient discharge of the requirement to restore the money +to the debtor to the extent of the amount so turned over. +Seizure +146 (1) If a person fails to pay an amount as required +under this Act, the Minister may in writing give 30 days +notice to the person, addressed to their latest known ad- +dress, of the Minister’s intention to direct that the per- +son’s things be seized and disposed of. If the person fails +to make the payment before the expiry of the 30 days, the +Minister may issue a certificate of the failure and direct +that the person’s things be seized. +Disposition +(2) Things that have been seized under subsection (1) +must be kept for 10 days at the expense and risk of the +owner. If the owner does not pay the amount due togeth- +er with all expenses within the 10 days, the Minister may +dispose of the things in a manner the Minister considers +appropriate in the circumstances. +Proceeds of disposition +(3) Any surplus resulting from a disposition, after deduc- +tion of the amount owing and all expenses, must be paid +or returned to the owner of the things seized. +Exemptions from seizure +(4) Any thing of any person in default that would be ex- +empt from seizure under a writ of execution issued by a +superior court of the province in which the seizure is +made is exempt from seizure under this section. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 263 +Person leaving Canada or defaulting +147 (1) If the Minister suspects that a person has left or +is about to leave Canada, the Minister may, before the +day otherwise fixed for payment, by notice to the person +served personally or sent by confirmed delivery service +addressed to their latest known address, demand pay- +ment of any amount for which the person is liable under +this Act or would be so liable if the time for payment had +arrived, and the amount must be paid without delay de- +spite any other provision of this Act. +Seizure +(2) If a person fails to pay an amount required under +subsection (1), the Minister may direct that things of the +person be seized, and subsections 146(2) to (4) apply, +with any modifications that the circumstances require. +Definitions +148 (1) The following definitions apply in this section. +assessed period of a person, in respect of an authoriza- +tion under subsection (2) relating to a particular report- +ing period of the person, means +(a) if the hearing date is before the last day of the par- +ticular reporting period, the period beginning on the +first day of the particular reporting period and ending +on the assessment date; and +(b) in any other case, the particular reporting period. +(période visée) +assessment date, in respect of an authorization under +subsection (2), means the day immediately before the +hearing date. (date de cotisation) +hearing date, in respect of an authorization under sub- +section (2), means the day on which a judge hears the ap- +plication for the authorization. (date d’audience) +Authorization to assess and take collection action +(2) Despite section 139, if, on ex parte application by the +Minister relating to a particular reporting period of a per- +son, a judge is satisfied that there are reasonable grounds +to believe that the net tax for the period, determined +without reference to this section, would be a positive +amount and that the collection of all or any part of that +net tax would be jeopardized by a delay in its collection, +the judge must, on any terms that the judge considers +reasonable in the circumstances, authorize the Minister +to, without delay, +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 264 +(a) assess the net tax for the assessed period, deter- +mined in accordance with subsection (3); and +(b) take any of the actions described in sections 141 to +146 in respect of that amount. +Effect of authorization +(3) For the purposes of this Act, if an authorization is +granted under subsection (2) in respect of an application +relating to a particular reporting period of a person, +(a) if the hearing date is before the last day of the par- +ticular reporting period, the following periods are each +deemed to be a separate reporting period of the per- +son: +(i) the assessed period, and +(ii) the period beginning on the hearing date and +ending on the last day of the particular reporting +period; +(b) the day on or before which the person is required +to file a return under section 55 for the assessed period +is deemed to be the hearing date; +(c) the net tax for the assessed period is deemed to be +equal to the amount that would be the net tax for the +period if, on the assessment date, the person were to +claim in a return filed under section 55 for the period +all amounts, each of which is an amount that the per- +son would be entitled on that day to claim as a rebate +under Subdivision A of Division 4 of Part 1 or a nega- +tive amount that is required to be added in determin- +ing the net tax for the period; +(d) the net tax for the assessed period is deemed to +have become due to the Receiver General on the hear- +ing date; +(e) if, in assessing the net tax for the assessed period, +the Minister takes into account an amount that the +person would be entitled to claim as a rebate under +Subdivision A of Division 4 of Part 1 or a negative +amount that is required to be added in determining +the net tax for the period, the person is deemed to +have claimed the amount in a return filed under sec- +tion 55 for the assessed period; and +(f) sections 82, 107, 116, 117 and 119 apply as if the net +tax for the assessed period were not required to be +paid, and the return for that period were not required +to be filed, until the last day of the period described in +subsection (9). +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 265 +Affidavits +(4) Statements contained in an affidavit filed in the con- +text of an application under this section may be based on +belief in which case it must include the grounds for that +belief. +Service of authorization and notice of assessment +(5) An authorization granted under subsection (2) in re- +spect of a person must be served by the Minister on the +person within 72 hours after it is granted, except if the +judge orders the authorization to be served at some other +time specified in the authorization, and a notice of as- +sessment for the assessed period must be served on the +person together with the authorization. +How service effected +(6) For the purpose of subsection (5), service on a person +must be effected by personal service on the person or ser- +vice in accordance with the directions of a judge. +Application to judge for direction +(7) If service cannot reasonably be effected as and when +required under this section, the Minister may, as soon as +practicable, apply to a judge for further direction. +Review of authorization +(8) If a judge of a court has granted an authorization un- +der subsection (2) in respect of a person, the person may, +on six clear days notice to the Deputy Attorney General of +Canada, apply to a judge of the court to review the autho- +rization. +Limitation period for review application +(9) An application by a person under subsection (8) to +review an authorization must be made +(a) within 30 days after the day on which the autho- +rization was served on the person in accordance with +this section; or +(b) within any further time that a judge may allow, on +being satisfied that the application was made as soon +as practicable. +Hearing in camera +(10) An application by a person under subsection (8) +may, on the application of the person, be heard in pri- +vate, if the person establishes to the satisfaction of the +judge that the circumstances of the case justify proceed- +ings heard in private. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 266 +Disposition of application +(11) On an application under subsection (8), the judge +must determine the question summarily and may con- +firm, vary or set aside the authorization and make any +other order that the judge considers appropriate. +Effect of setting aside authorization +(12) If an authorization is set aside under subsection +(11), subsection (3) does not apply in respect of the au- +thorization and any assessment made as a result of the +authorization is deemed to be void. +Directions +(13) If any question arises as to the course to be followed +in connection with anything done or being done under +this section and there is no relevant direction in this sec- +tion, a judge may give any direction with regard to the +course to be followed that, in the opinion of the judge, is +appropriate. +No appeal from review order +(14) No appeal lies from an order of a judge made under +subsection (11). +Compliance by unincorporated bodies +149 (1) If any amount is required to be paid or any oth- +er thing is required to be done by or under this Act by a +person (in this section referred to as the “body”) that is +not an individual, estate or succession of a deceased indi- +vidual, partnership, corporation, trust or joint venture, it +is the joint and several, or solidary, liability and responsi- +bility of +(a) every member of the body holding office as presi- +dent, chairperson, treasurer, secretary or similar offi- +cer of the body, +(b) if there are no officers of the body referred to in +paragraph (a), every member of any committee having +management of the affairs of the body, and +(c) if there are no officers of the body referred to in +paragraph (a) and no committee referred to in para- +graph (b), every member of the body, +to pay that amount or to comply with the requirement, +and if the amount is paid or the requirement is fulfilled +by an officer of the body referred to in paragraph (a), a +member of a committee referred to in paragraph (b) or a +member of the body, it is considered as compliance with +the requirement. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 267 +Assessment +(2) The Minister may assess any person for any amount +for which the person is liable under this section and, if +the Minister sends a notice of assessment, sections 72 +and 92 to 106 are applicable, with any modifications that +the circumstances require. +Limitation +(3) An assessment of a person under subsection (2) must +not +(a) include any amount that the body was liable to pay +before the day the person became jointly and several- +ly, or solidarily, liable; +(b) include any amount that the body became liable to +pay after the day the person ceased to be jointly and +severally, or solidarily, liable; or +(c) be made more than two years after the day on +which the person ceased to be jointly and severally, or +solidarily, liable unless the person was grossly negli- +gent in the carrying out of any obligation imposed on +the body by or under this Act or made, or participated +in, assented to or acquiesced in the making of, a false +statement or omission in a return, application, form, +certificate, statement, invoice or answer made by the +body. +Definition of transaction +150 (1) In this section, transaction has the meaning as- +signed by subsection 68(1). +Tax liability — transfers not at arm’s length +(2) If at any time a person transfers property, either di- +rectly or indirectly, by means of a trust or by any other +means, to +(a) the transferor’s spouse or common-law partner or +an individual that has since become the transferor’s +spouse or common-law partner, +(b) an individual that was under 18 years of age, or +(c) another person with whom the transferor was not +dealing at arm’s length, +the transferee and transferor are jointly and severally, or +solidarily, liable to pay under this Act an amount equal to +the lesser of +(d) the amount determined by the formula +A – B +where +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 268 +A +is the amount, if any, by which the fair market val- +ue of the property at that time exceeds the fair +market value at that time of the consideration giv- +en by the transferee for the transfer of the proper- +ty, and +B +is the amount, if any, by which the amount as- +sessed the transferee under paragraph 97.44(1)(b) +of the Customs Act, subsection 325(2) of the Ex- +cise Tax Act, subsection 160(2) of the Income Tax +Act, subsection 297(3) of the Excise Act, 2001 or +subsection 161(3) of the Greenhouse Gas Pollution +Pricing Act in respect of the property exceeds the +amount paid by the transferor in respect of the +amount so assessed, and +(e) the total of all amounts each of which is +(i) an amount that the transferor is liable to pay un- +der this Act for the reporting period of the transfer- +or that includes that time or any preceding report- +ing period of the transferor, or +(ii) interest or penalty for which the transferor is li- +able as of that time, +but nothing in this subsection limits the liability of the +transferor under this Act. +Fair market value of undivided interest +(3) For the purpose of this section, the fair market value +at any time of an undivided interest in a property, ex- +pressed as a proportionate interest in that property, is, +subject to subsection (6), deemed to be equal to the same +proportion of the fair market value of that property at +that time. +Assessment +(4) The Minister may at any time assess a transferee in +respect of any amount payable by reason of this section, +and the provisions of sections 72 and 92 to 106 apply, +with any modifications that the circumstances require. +Rules applicable +(5) If a transferor and transferee have, by reason of sub- +section (2), become jointly and severally, or solidarily, li- +able in respect of part or all of the liability of the transfer- +or under this Act, the following rules apply: +(a) a payment by the transferee on account of the +transferee’s liability must, to the extent of the pay- +ment, discharge their liability; and +(b) a payment by the transferor on account of the +transferor’s liability only discharges the transferee’s +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 269 +liability to the extent that the payment operates to re- +duce the transferor’s liability to an amount less than +the amount in respect of which the transferee was, by +subsection (2), made jointly and severally, or solidari- +ly, liable. +Transfers to spouse or common-law partner +(6) Despite subsection (2), if at any time an individual +transfers property to the individual’s spouse or common- +law partner under a decree, order or judgment of a com- +petent tribunal or under a written separation agreement +and, at that time, the individual and the individual’s +spouse or common-law partner were separated and living +apart as a result of the breakdown of their marriage or +common-law partnership as defined in subsection +248(1) of the Income Tax Act, for the purposes of para- +graph (2)(d), the fair market value at that time of the +property so transferred is deemed to be nil, but nothing +in this subsection limits the liability of the individual un- +der this Act. +Anti-avoidance rules +(7) For the purposes of this section, if a person transfers +property to another person as part of a transaction or se- +ries of transactions, the following rules apply: +(a) the transferor is deemed to not be dealing at arm’s +length with the transferee at the time of the transfer of +the property if +(i) the transferor and the transferee do not deal at +arm’s length at any time during the period begin- +ning immediately prior to the transaction or series +of transactions and ending immediately after the +transaction or series of transactions, and +(ii) it is reasonable to conclude that one of the pur- +poses of undertaking or arranging the transaction +or series of transactions is to avoid joint and sever- +al, or solidary, liability of the transferee and the +transferor under this section for an amount payable +under this Act; +(b) an amount that the transferor is liable to pay un- +der this Act (including, for greater certainty, an +amount that the transferor is liable to pay under this +section, regardless of whether the Minister has made +an assessment under subsection (4) in respect of that +amount) is deemed to have become payable in the re- +porting period of the transferor in which the property +was transferred, if it is reasonable to conclude that one +of the purposes of the transfer of the property is to +avoid the payment of a future charge debt by the +transferor or transferee; and +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 270 +(c) the amount determined for A in paragraph (2)(d) +is deemed to be the greater of +(i) the amount otherwise determined for A in para- +graph (2)(d) without reference to this paragraph, +and +(ii) the amount determined by the formula +A − B +where +A +is the fair market value of the property at the +time of the transfer, and +B +is the fair market value, at its lowest at any +time during the period beginning immediately +prior to the transaction or series of transactions +and ending immediately after the transaction +or series of transactions, of the consideration +given by the transferee for the transfer of the +property (other than any part of the considera- +tion that is in a form that is cancelled or extin- +guished during that period) provided that the +consideration is held by the transferor at that +time. +SUBDIVISION L +Evidence and Procedure +Service +151 (1) If the Minister is authorized or required to +serve, issue or send a notice or other document on or to a +person that +(a) is a partnership, the notice or document may be +addressed to the name of the partnership; +(b) is a joint venture, the notice or document may be +addressed to the name of the joint venture; +(c) is a union, the notice or document may be ad- +dressed to the name of the union; +(d) is a society, club, association, organization or oth- +er body, the notice or document may be addressed to +the name of the body; and +(e) carries on business under a name or style other +than the name of the person, the notice or document +may be addressed to the name or style under which +the person carries on business. +Personal service +(2) If the Minister is authorized or required to serve, is- +sue or send a notice or other document on or to a person +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 271 +that carries on a business, the notice or document is +deemed to have been validly served, issued or sent if it is +(a) if the person is a partnership, served personally on +one of the partners or left with an adult person em- +ployed at the place of business of the partnership; +(b) if the person is a joint venture, served personally +on one of the participants in, or operators of, the joint +venture or left with an adult person employed at the +place of business of the joint venture; or +(c) left with an adult person employed at the place of +business of the person. +Timing of receipt +152 (1) For the purposes of this Act and subject to sub- +section (2), anything sent by confirmed delivery service +or first class mail is deemed to have been received by the +person to which it was sent on the day it was mailed or +sent. +Timing of payment +(2) A person that is required under this Act to pay an +amount is deemed not to have paid it until it is received +by the Receiver General. +Proof of service +153 (1) If, under this Act, provision is made for sending +by confirmed delivery service a request for information, a +notice or a demand, an affidavit of an officer of the +Canada Revenue Agency, sworn before a commissioner +or other person authorized to take affidavits, is evidence +of the sending and of the request, notice or demand if the +affidavit sets out that +(a) the officer has knowledge of the facts in the partic- +ular case; +(b) the request, notice or demand was sent by con- +firmed delivery service on a specified day to a specified +person and address; and +(c) the officer identifies as exhibits attached to the af- +fidavit a true copy of the request, notice or demand +and +(i) if the request, notice, or demand was sent by +registered or certified mail, the post office certifi- +cate of registration of the letter or a true copy of the +relevant portion of the certificate, and +(ii) in any other case, the record that the document +has been sent or a true copy of the relevant portion +of the record. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 272 +Proof of personal service +(2) If, under this Act, provision is made for personal ser- +vice of a request for information, a notice or a demand, +an affidavit of an officer of the Canada Revenue Agency, +sworn before a commissioner or other person authorized +to take affidavits, is evidence of the personal service and +of the request, notice or demand if the affidavit sets out +that +(a) the officer has knowledge of the facts in the partic- +ular case; +(b) the request, notice or demand was served person- +ally on a named day on the person to whom it was di- +rected; and +(c) the officer identifies as an exhibit attached to the +affidavit a true copy of the request, notice or demand. +Proof of electronic delivery +(3) If, under this Act, provision is made for sending a no- +tice to a person electronically, an affidavit of an officer of +the Canada Revenue Agency, sworn before a commis- +sioner or other person authorized to take affidavits, is ev- +idence of the sending and of the notice if the affidavit sets +out that +(a) the officer has knowledge of the facts in the partic- +ular case; +(b) the notice was sent electronically to the person on +a named day; and +(c) the officer identifies as exhibits attached to the af- +fidavit copies of +(i) an electronic message confirming that the notice +has been sent to the person, and +(ii) the notice. +Proof — failure to comply +(4) If, under this Act, a person is required to make a re- +turn, an application, a statement, an answer or a certifi- +cate, an affidavit of an officer of the Canada Revenue +Agency, sworn before a commissioner or other person +authorized to take affidavits, setting out that the officer +has charge of the appropriate records and that, after a +careful examination and search of the records, the officer +has been unable to find in a given case that the return, +application, statement, answer or certificate has been +made by that person, is evidence that in that case the +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 273 +person did not make the return, application, statement, +answer or certificate. +Proof — time of compliance +(5) If, under this Act, a person is required to make a re- +turn, an application, a statement, an answer or a certifi- +cate, an affidavit of an officer of the Canada Revenue +Agency, sworn before a commissioner or other person +authorized to take affidavits, setting out that the officer +has charge of the appropriate records and that, after a +careful examination of the records, the officer has found +that the return, application, statement, answer or certifi- +cate was filed or made on a particular day, is evidence +that it was filed or made on that day. +Proof of documents +(6) An affidavit of an officer of the Canada Revenue +Agency, sworn before a commissioner or other person +authorized to take affidavits, setting out that the officer +has charge of the appropriate records and that a docu- +ment attached to the affidavit is a document or true copy +of a document, or a printout of an electronic document, +made by or on behalf of the Minister or a person exercis- +ing the powers of the Minister or by or on behalf of a per- +son, is evidence of the nature and contents of the docu- +ment. +Proof of documents +(7) An affidavit of an officer of the Canada Border Ser- +vices Agency, sworn before a commissioner or other per- +son authorized to take affidavits, setting out that the offi- +cer has charge of the appropriate records and that a doc- +ument attached to the affidavit is a document or true +copy of a document, or a printout of an electronic docu- +ment, made by or on behalf of the Minister of Public +Safety and Emergency Preparedness or a person exercis- +ing the powers of that Minister or by or on behalf of a +person, is evidence of the nature and contents of the doc- +ument. +Proof of no appeal +(8) An affidavit of an officer of the Canada Revenue +Agency or the Canada Border Services Agency, sworn be- +fore a commissioner or other person authorized to take +affidavits, setting out that the officer has charge of the +appropriate records and has knowledge of the practice of +the Canada Revenue Agency or the Canada Border Ser- +vices Agency, as the case may be, and that an examina- +tion of the records shows that a notice of assessment was +mailed or otherwise sent to a person on a particular day +under this Act and that, after a careful examination and +search of the records, the officer has been unable to find +that a notice of objection or of appeal from the assess- +ment, as the case may be, was received within the time +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 274 +allowed, is evidence of the statements contained in the +affidavit. +Presumption +(9) If evidence is offered under this section by an affi- +davit from which it appears that the person making the +affidavit is an officer of the Canada Revenue Agency or +the Canada Border Services Agency, it is not necessary to +prove the signature of the person or that the person is +such an officer, nor is it necessary to prove the signature +or official character of the person before whom the affi- +davit was sworn. +Proof of documents +(10) Every document purporting to have been executed +under or in the course of the administration or enforce- +ment of this Act over the name in writing of the Minister, +the Commissioner or an officer authorized to exercise the +powers or perform the duties of the Minister under this +Act is deemed to be a document signed, made and issued +by the Minister, the Commissioner or the officer, unless +it has been called into question by the Minister or a per- +son acting for the Minister or for Her Majesty in right of +Canada. +Proof of documents +(11) Every document purporting to have been executed +under or in the course of the administration or enforce- +ment of this Act over the name in writing of the Minister +of Public Safety and Emergency Preparedness, the Presi- +dent of the Canada Border Services Agency or an officer +authorized to exercise the powers or perform the duties +of that Minister under this Act is deemed to be a docu- +ment signed, made and issued by that Minister, the Pres- +ident or the officer, unless it has been called into ques- +tion by that Minister or a person acting for that Minister +or for Her Majesty in right of Canada. +Mailing or sending date +(12) For the purposes of this Act, if a notice or demand +that the Minister is required or authorized under this Act +to send to a person is mailed, or sent electronically, to the +person, the day of mailing or sending, as the case may be, +is presumed to be the date of the notice or demand. +Date electronic notice sent +(13) For the purposes of this Act, if a notice or other +communication in respect of a person, other than a no- +tice or other communication that refers to the business +number of a person, is made available in electronic for- +mat such that it can be read or perceived by a person or a +computer system or other similar device, the notice or +other communication is presumed to be sent to the +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 275 +person and received by the person on the date that an +electronic message is sent, to the electronic address most +recently provided before that date by the person to the +Minister for the purposes of this subsection, informing +the person that a notice or other communication requir- +ing the person’s immediate attention is available in the +person’s secure electronic account. A notice or other +communication is considered to be made available if it is +posted by the Minister in the person’s secure electronic +account and the person has authorized that notices or +other communications may be made available in this +manner and has not before that date revoked that autho- +rization in a manner specified by the Minister. +Date electronic notice sent — business account +(14) For the purposes of this Act, a notice or other com- +munication in respect of a person that is made available +in electronic format such that it can be read or perceived +by a person or computer system or other similar device +and that refers to the business number of a person is pre- +sumed to be sent to the person and received by the per- +son on the date that it is posted by the Minister in the se- +cure electronic account in respect of the business number +of the person, unless the person has requested at least 30 +days before that date, in a manner specified by the Minis- +ter, that such notices or other communications be sent by +mail. +Date assessment made +(15) If a notice of assessment has been sent by the Min- +ister as required under this Act, the assessment is +deemed to have been made on the day of sending of the +notice of assessment. +Proof of return +(16) In a prosecution for an offence under this Act, the +production of a return, an application, a certificate, a +statement or an answer required under this Act, purport- +ing to have been filed or delivered by or on behalf of the +person charged with the offence or to have been made or +signed by or on behalf of that person, is evidence that the +return, application, certificate, statement or answer was +filed or delivered by or on behalf of that person or was +made or signed by or on behalf of that person. +Proof of return — printouts +(17) For the purposes of this Act, a document presented +by the Minister purporting to be a printout of the infor- +mation in respect of a person received under section 74 +by the Minister is to be received as evidence and, in the +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 276 +absence of evidence to the contrary, is proof of the return +filed by the person under that section. +Proof of return — production of returns, etc. +(18) In a proceeding under this Act, the production of a +return, an application, a certificate, a statement or an an- +swer required under this Act, purporting to have been +filed, delivered, made or signed by or on behalf of a per- +son, is evidence that the return, application, certificate, +statement or answer was filed, delivered, made or signed +by or on behalf of that person. +Evidence +(19) In a prosecution for an offence under this Act, an af- +fidavit of an officer of the Canada Revenue Agency, +sworn before a commissioner or other person authorized +to take affidavits, setting out that the officer has charge of +the appropriate records and that an examination of the +records shows that an amount required under this Act to +be paid to the Receiver General has not been received by +the Receiver General, is evidence of the statements con- +tained in the affidavit. +DIVISION 3 +Regulations +Regulations +154 (1) The Governor in Council may make regulations +(a) prescribing anything that, by this Act, is to be pre- +scribed or is to be determined or regulated by regula- +tion; +(b) requiring any person to provide any information, +including the person’s name, address and registration +number, to any class of persons required to make a re- +turn containing that information; +(c) requiring any person to provide the Minister with +the person’s Social Insurance Number; +(d) requiring any class of persons to make returns re- +specting any class of information required in connec- +tion with the administration or enforcement of this +Act; +(e) distinguishing among any class of persons, proper- +ty or activities; and +(f) generally to carry out the purposes and provisions +of this Act. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 277 +Amendments to schedule +(2) The Governor in Council may, by regulation, amend +the schedule including by adding, deleting, varying or re- +placing any item in the schedule or by replacing the +schedule. +Effect +(3) A regulation made under this Act is to have effect +from the date it is published in the Canada Gazette or at +such time thereafter as may be specified in the regula- +tion, unless the regulation provides otherwise and +(a) has a non-tightening effect only; +(b) corrects an ambiguous or deficient enactment that +was not in accordance with the objects of this Act; +(c) is consequential on an amendment to this Act that +is applicable before the date the regulation is pub- +lished in the Canada Gazette; or +(d) gives effect to a public announcement, in which +case the regulation must not, except if any of para- +graphs (a) to (c) apply, have effect before the date that +the announcement was made. +Positive or negative amount — regulations +155 For greater certainty, +(a) in prescribing an amount under subsection 154(1), +the Governor in Council may prescribe a positive or +negative amount; and +(b) in prescribing a manner of determining an amount +under subsection 154(1), the Governor in Council may +prescribe a manner that could result in a positive or +negative amount. +Incorporation by reference — limitation removed +156 The limitation set out in paragraph 18.1(2)(a) of the +Statutory Instruments Act, to the effect that a document +must be incorporated as it exists on a particular date, +does not apply to any power to make regulations under +this Act. +Certificates and registrations not statutory +instruments +157 For greater certainty, any registration or certificate +issued under this Act is not a statutory instrument for the +purposes of the Statutory Instruments Act. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 278 +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +(2.1) Despite subsection (2), the provisions of the +Select Luxury Items Tax Act, as enacted by sub- +section (1), that set out the tax on subject aircraft +come into force on a day or days to be fixed by or- +der of the Governor in Council, which day or +days may not be fixed before September 1, 2022. +(3) Despite subsection (2), sections 107 to 119 and +121 to 129 of the Select Luxury Items Tax Act, as +enacted by subsection (1), come into force on the +later of the day on which this Act receives royal +assent and September 1, 2022. +(4) In applying subsection (2), the following rules +apply: +(a) if a vendor sells a subject item to a purchas- +er, within the meaning of section 7 of the Se- +lect Luxury Items Tax Act, as enacted by sub- +section (1), and an agreement between the +purchaser and the vendor for the sale of the +subject item is entered into before September +2022, sections 18 and 29 of that Act, as enacted +by subsection (1), apply in respect of the sale if +the sale is completed, within the meaning of +that section 7, on or after September 1, 2022 un- +less the purchaser entered into the agreement +in writing before 2022 in the course of the ven- +dor’s business of offering for sale that type of +subject item; +(b) section 20 of that Act, as enacted by subsec- +tion (1), applies in respect of a subject item if +the subject item is imported on or after +September 1, 2022 unless the importer entered +into an agreement in writing before 2022 with a +vendor for the sale of the subject item in the +course of the vendor’s business of offering for +sale that type of subject item; +(c) section 23 of that Act, as enacted by subsec- +tion (1), applies to a subject vehicle that is reg- +istered with the Government of Canada or a +province, within the meaning of subsection +12(1) of that Act, as enacted by subsection (1), +on or after September 1, 2022; +(d) sections 24 and 25 of that Act, as enacted by +subsection (1), apply to a subject item in re- +spect of which the right to use the subject item +is provided by an owner of the subject item to +another person if the other person first has the +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Section +135 + +Page 279 +right to use the subject item on or after +September 1, 2022; +(e) section 26 of that Act, as enacted by subsec- +tion (1), applies to a subject item that is used in +Canada at a particular time on or after +September 1, 2022 unless a person entered into +an agreement in writing before 2022 with a ven- +dor for the sale of the subject item in the +course of the vendor’s business of offering for +sale that type of subject item and the person is +an owner of the subject item at the particular +time; +(f) section 27 of that Act, as enacted by subsec- +tion (1), applies to a subject item if a person +that is an owner of the subject item ceases to +be a registered vendor in respect of that type +of subject item on or after September 1, 2022; +(g) section 28 of that Act, as enacted by subsec- +tion (1), applies to a subject item if a person +that is an owner of the subject item ceases to +be a qualifying aircraft user on or after +September 1, 2022; and +(h) section 30 of that Act, as enacted by subsec- +tion (1), applies to a subject item if tax under +any of sections 20 and 23 to 28 of that Act, as en- +acted by subsection (1), became payable in re- +spect of the subject item on or after September +1, 2022. +Consequential Amendments +R.S., c. A-1 +Access to Information Act +136 (1) Schedule II to the Access to Information +Act is amended by adding, in alphabetical order, +a reference to +Select Luxury Items Tax Act +Loi sur la taxe sur certains biens de luxe +and a corresponding reference to “section 91”. +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Enactment of Act +Sections 135-136 + +Page 280 +R.S., c. B-3; 1992, c. 27, s. 2 +Bankruptcy and Insolvency Act +137 (1) Subsection 149(3) of the Bankruptcy and +Insolvency Act is amended by striking out “and” +at the end of paragraph (f), by adding “and” at +the end of paragraph (g) and by adding the fol- +lowing after paragraph (g): +(h) the Select Luxury Items Tax Act. +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +R.S., c. C-46 +Criminal Code +138 Paragraph 462.48(2)(c) of the Criminal Code +is replaced by the following: +(c) the type of information or book, record, writing, +return or other document obtained by or on behalf of +the Minister of National Revenue for the purposes of +Part IX of the Excise Tax Act, the Income Tax Act, the +Excise Act, 2001 or the Select Luxury Items Tax Act to +which access is sought or that is proposed to be exam- +ined or communicated; and +R.S., c. C-53 +Customs and Excise Offshore +Application Act +139 (1) The portion of the definition federal cus- +toms laws in subsection 2(1) of the Customs and +Excise Offshore Application Act after paragraph +(c) is replaced by the following: +that relate to customs or excise, whether those Acts, reg- +ulations or rules come into force before or after June 30, +1983 and, for greater certainty but without restricting the +generality of the foregoing, includes the following Acts, +namely, the Excise Act, the Excise Tax Act, the Export +and Import Permits Act, the Importation of Intoxicating +Liquors Act, the Special Import Measures Act, the Cus- +toms Act, the Customs Tariff, the Excise Act, 2001 and +the Select Luxury Items Tax Act; (législation douanière +fédérale) +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Consequential Amendments +Bankruptcy and Insolvency Act +Sections 137-139 + +Page 281 +R.S., c. E-15 +Excise Tax Act +140 (1) Section 77 of the Excise Tax Act is re- +placed by the following: +Restriction on refunds and credits +77 A refund shall not be paid, and a credit shall not be +allowed, to a person under this Act until the person has +filed with the Minister all returns and other records of +which the Minister has knowledge that are required to be +filed under the Excise Tax Act, the Income Tax Act, the +Air Travellers Security Charge Act, the Excise Act, 2001 +and the Select Luxury Items Tax Act. +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +141 (1) Subsection 229(2) of the Act is replaced by +the following: +Restriction +(2) A net tax refund for a reporting period of a person +shall not be paid to the person under subsection (1) at +any time unless all returns of which the Minister has +knowledge and that are required to be filed at or before +that time by the person under this Act, the Income Tax +Act, the Air Travellers Security Charge Act, the Excise +Act, 2001 and the Select Luxury Items Tax Act have been +filed with the Minister. +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +142 (1) Subsection 230(2) of the Act is replaced by +the following: +Restriction +(2) An amount paid on account of net tax for a reporting +period of a person shall not be refunded to the person +under subsection (1) at any time unless all returns of +which the Minister has knowledge and that are required +to be filed at or before that time by the person under this +Act, the Income Tax Act, the Air Travellers Security +Charge Act, the Excise Act, 2001 and the Select Luxury +Items Tax Act have been filed with the Minister. +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Consequential Amendments +Excise Tax Act +Sections 140-142 + +Page 282 +143 (1) Subparagraph 238.1(2)(c)(iii) of the Act is +replaced by the following: +(iii) all amounts required under this Act (other +than this Part), sections 21 and 33 of the Canada +Pension Plan, the Excise Act, the Customs Act, the +Income Tax Act, section 82 and Part VII of the Em- +ployment Insurance Act, the Customs Tariff, the +Excise Act, 2001 and the Select Luxury Items Tax +Act to be remitted or paid before that time by the +registrant have been remitted or paid, and +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +144 (1) Section 263.02 of the Act is replaced by the +following: +Restriction on rebate +263.02 A rebate under this Part shall not be paid to a +person at any time unless all returns of which the Minis- +ter has knowledge and that are required to be filed at or +before that time by the person under this Act, the Income +Tax Act, the Air Travellers Security Charge Act, the Ex- +cise Act, 2001 and the Select Luxury Items Tax Act have +been filed with the Minister. +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +145 (1) Subsection 296(7) of the Act is replaced by +the following: +Restriction on refunds +(7) An amount under this section shall not be refunded +to a person at any time unless all returns of which the +Minister has knowledge and that are required to be filed +at or before that time by the person under this Act, the +Income Tax Act, the Air Travellers Security Charge Act, +the Excise Act, 2001 and the Select Luxury Items Tax Act +have been filed with the Minister. +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Consequential Amendments +Excise Tax Act +Sections 143-145 + +Page 283 +R.S., c. E-20; 2001, c. 33, s. 2(F) +Export Development Act +146 (1) Paragraph 24.3(2)(c) of the Export Devel- +opment Act is replaced by the following: +(c) to the Minister of National Revenue solely for the +purpose of administering or enforcing the Excise Tax +Act, the Income Tax Act or the Select Luxury Items +Tax Act; or +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +R.S., c. F-11 +Financial Administration Act +147 (1) Paragraph 155.2(6)(c) of the Financial Ad- +ministration Act is replaced by the following: +(c) an amount owing by a person to Her Majesty in +right of Canada, or payable by the Minister of National +Revenue to any person, under the Excise Tax Act, the +Income Tax Act, the Air Travellers Security Charge +Act, the Excise Act, 2001, the Softwood Lumber Prod- +ucts Export Charge Act, 2006 or the Select Luxury +Items Tax Act. +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +R.S., c. T-2 +Tax Court of Canada Act +148 (1) Subsection 12(1) of the Tax Court of +Canada Act is replaced by the following: +Jurisdiction +12 (1) The Court has exclusive original jurisdiction to +hear and determine references and appeals to the Court +on matters arising under the Canada Pension Plan, the +Cultural Property Export and Import Act, Part IX of the +Excise Tax Act, the Old Age Security Act, the Petroleum +and Gas Revenue Tax Act, Part V.1 of the Customs Act, +the Income Tax Act, the Employment Insurance Act, the +Air Travellers Security Charge Act, the Excise Act, 2001, +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Consequential Amendments +Export Development Act +Sections 146-148 + +Page 284 +the Softwood Lumber Products Export Charge Act, 2006, +the Disability Tax Credit Promoters Restrictions Act, +Part 1 of the Greenhouse Gas Pollution Pricing Act and +the Select Luxury Items Tax Act when references or ap- +peals to the Court are provided for in those Acts. +(2) Subsections 12(3) and (4) of the Act are re- +placed by the following: +Further jurisdiction +(3) The Court has exclusive original jurisdiction to hear +and determine questions referred to it under section 310 +or 311 of the Excise Tax Act, section 97.58 of the Customs +Act, section 173 or 174 of the Income Tax Act, section 51 +or 52 of the Air Travellers Security Charge Act, section +204 or 205 of the Excise Act, 2001, section 62 or 63 of the +Softwood Lumber Products Export Charge Act, 2006, +section 121 or 122 of the Greenhouse Gas Pollution Pric- +ing Act or section 105 or 106 of the Select Luxury Items +Tax Act. +Extensions of time +(4) The Court has exclusive original jurisdiction to hear +and determine applications for extensions of time under +subsection 28(1) of the Canada Pension Plan, section +33.2 of the Cultural Property Export and Import Act, +section 304 or 305 of the Excise Tax Act, section 97.51 or +97.52 of the Customs Act, section 166.2 or 167 of the In- +come Tax Act, subsection 103(1) of the Employment In- +surance Act, section 45 or 47 of the Air Travellers Securi- +ty Charge Act, section 197 or 199 of the Excise Act, 2001, +section 115 or 117 of the Greenhouse Gas Pollution Pric- +ing Act or section 99 or 101 of the Select Luxury Items +Tax Act. +(3) Subsections (1) and (2) come into force, or are +deemed to have come into force, on September 1, +2022. +149 (1) Paragraph 18.29(3)(a) of the Act is amend- +ed by striking out “or” at the end of subpara- +graph (vii), by replacing “and” at the end of sub- +paragraph (viii) with “or” and by adding the fol- +lowing after subparagraph (viii): +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Consequential Amendments +Tax Court of Canada Act +Sections 148-149 + +Page 285 +(ix) section 99 or 101 of the Select Luxury Items +Tax Act; and +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +150 (1) Subsection 18.31(2) of the Act is replaced +by the following: +Determination of a question +(2) If it is agreed under section 310 of the Excise Tax Act, +section 97.58 of the Customs Act, section 51 of the Air +Travellers Security Act, section 204 of the Excise Act, +2001, section 62 of the Softwood Lumber Products Ex- +port Act, 2006, section 121 of the Greenhouse Gas Pollu- +tion Pricing Act or section 105 of the Select Luxury Items +Tax Act that a question should be determined by the +Court, sections 17.1, 17.2 and 17.4 to 17.8 apply, with any +modifications that the circumstances require, in respect +of the determination of the question. +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +151 (1) Subsection 18.32(2) of the Act is replaced +by the following: +Provisions applicable to determination of a question +(2) If an application has been made under section 311 of +the Excise Tax Act, section 52 of the Air Travellers Secu- +rity Charge Act, section 205 of the Excise Act, 2001, sec- +tion 63 of the Softwood Lumber Products Export Charge +Act, 2006, section 122 of the Greenhouse Gas Pollution +Pricing Act or section 106 of the Select Luxury Items Tax +Act for the determination of a question, the application +or determination of the question must, subject to section +18.33, be determined in accordance with sections 17.1, +17.2 and 17.4 to 17.8, with any modifications that the cir- +cumstances require. +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +R.S., c. 1 (2nd Supp.) +Customs Act +152 (1) Subsection 3(1) of the Customs Act is re- +placed by the following: +Duties binding on Her Majesty +3 (1) All duties or taxes levied on imported goods under +the Excise Tax Act, the Special Import Measures Act, the +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Consequential Amendments +Tax Court of Canada Act +Sections 149-152 + +Page 286 +Customs Tariff, the Excise Act, 2001, the Select Luxury +Items Tax Act or any other law relating to customs are +binding on Her Majesty in right of Canada or a province +in respect of any goods imported by or on behalf of Her +Majesty. +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +153 (1) Section 44 of the Act is replaced by the +following: +Ad valorem rates of duty +44 If duties, other than duties or taxes levied under the +Excise Tax Act, the Excise Act, 2001 or the Select Luxury +Items Tax Act, are imposed on goods at a percentage +rate, such duties shall be calculated by applying the rate +to a value determined in accordance with sections 45 to +55. +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +154 (1) Clause 48(5)(b)(ii)(B) of the Act is re- +placed by the following: +(B) any duties and taxes paid or payable by rea- +son of the importation of the goods or sale of the +goods in Canada, including, without limiting the +generality of the foregoing, any duties or taxes +levied on the goods under the Excise Tax Act, the +Special Import Measures Act, the Customs Tar- +iff, the Excise Act, 2001, the Select Luxury Items +Tax Act or any other law relating to customs; +and +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +155 (1) Subsection 74(1.2) of the Act is replaced +by the following: +Duties +(1.2) The duties that may be refunded under paragraph +(1)(f) do not include duties or taxes levied under the Ex- +cise Tax Act, the Special Import Measures Act, the Ex- +cise Act, 2001 or the Select Luxury Items Tax Act. +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +156 (1) The +description +of +B +in +paragraph +97.29(1)(a) of the Act is replaced by the following: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Consequential Amendments +Customs Act +Sections 152-156 + +Page 287 +B +is the amount, if any, by which the amount as- +sessed the transferee under subsection 325(2) of +the Excise Tax Act, subsection 160(2) of the In- +come Tax Act, subsection 297(3) of the Excise Act, +2001 and subsection 150(4) of the Select Luxury +Items Tax Act in respect of the property exceeds +the amount paid by the transferor in respect of the +amount so assessed, and +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +157 (1) Paragraph 107(5)(g.1) of the Act is re- +placed by the following: +(g.1) an official of the Canada Revenue Agency solely +for a purpose relating to the administration or en- +forcement of the Canada Pension Plan, the Excise Act, +the Excise Tax Act, the Income Tax Act, the Employ- +ment Insurance Act, the Excise Act, 2001 or the Select +Luxury Items Tax Act; +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +R.S., c. 1 (5th Supp.) +Income Tax Act +158 (1) Paragraph 18(1)(t) of the Income Tax Act +is amended by striking out “or” at the end of sub- +paragraph (ii), by adding “or” at the end of sub- +paragraph (iii) and by adding the following after +subparagraph (iii): +(iv) as interest under the Select Luxury Items Tax +Act; +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +159 (1) Subsection 164(2.01) of the Act is replaced +by the following: +Withholding of refunds +(2.01) The Minister shall not, in respect of a taxpayer, +refund, repay, apply to other debts or set-off amounts +under this Act at any time unless all returns of which the +Minister has knowledge and that are required to be filed +by the taxpayer at or before that time under this Act, the +Excise Tax Act, the Air Travellers Security Charge Act, +the Excise Act, 2001 and the Select Luxury Items Tax Act +have been filed with the Minister. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Consequential Amendments +Customs Act +Sections 156-159 + +Page 288 +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +160 (1) The portion of subsection 221.2(2) of the +Act before paragraph (a) is replaced by the fol- +lowing: +Re-appropriation of amounts +(2) If a particular amount was appropriated to an +amount (in this section referred to as the “debt”) that is +or may become payable by a person under this Act, the +Excise Tax Act, the Air Travellers Security Charge Act, +the Excise Act, 2001 or the Select Luxury Items Tax Act, +the Minister may, on application by the person, appropri- +ate the particular amount, or a part of it, to another +amount that is or may become payable under any of +those Acts and, for the purposes of any of those Acts, +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +1997, c. 36 +Customs Tariff +161 (1) Subsection 94(2) of the Customs Tariff is +replaced by the following: +For greater certainty +(2) For greater certainty, in sections 95, 96, 98.1 and 98.2, +customs duties does not include any duties or taxes +levied or imposed on imported goods under the Excise +Tax Act, the Special Import Measures Act, the Excise +Act, 2001 or the Select Luxury Items Tax Act. +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +1999, c. 17; 2005, c. 38, s. 35 +Canada Revenue Agency Act +162 (1) Paragraph (a) of the definition program +legislation in section 2 of the Canada Revenue +Agency Act is replaced by the following: +(a) that the Governor in Council or Parliament autho- +rizes the Minister, the Agency, the Commissioner or +an employee of the Agency to administer or enforce, +including +(i) the Excise Act, +(ii) the Excise Tax Act, +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Consequential Amendments +Income Tax Act +Sections 159-162 + +Page 289 +(iii) the Customs Act, +(iv) the Income Tax Act, +(v) the Air Travellers Security Charge Act, +(vi) the Excise Act, 2001, +(vii) the +Softwood +Lumber +Products +Export +Charge Act, 2006, +(viii) the Greenhouse Gas Pollution Pricing Act, +and +(ix) the Select Luxury Items Tax Act; or +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +2002, c. 9, s. 5 +Air Travellers Security Charge Act +163 (1) Subsection 40(4) of the Air Travellers Se- +curity Charge Act is replaced by the following: +Restriction +(4) A refund shall not be paid until the person has filed +with the Minister all returns and other records of which +the Minister has knowledge that are required to be filed +under this Act, the Excise Tax Act, the Income Tax Act, +the Excise Act, 2001 and the Select Luxury Items Tax Act. +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +2002, c. 22 +Excise Act, 2001 +164 (1) Paragraph 188(6)(a) of the Excise Act, +2001 is replaced by the following: +(a) the Minister under this Act, the Excise Act, the Ex- +cise Tax Act, the Income Tax Act, the Air Travellers +Security Charge Act and the Select Luxury Items Tax +Act; or +(2) Clause 188(7)(b)(ii)(A) of the Act is replaced +by the following: +(A) the Minister under this Act, the Excise Act, +the Excise Tax Act, the Income Tax Act, the Air +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Consequential Amendments +Canada Revenue Agency Act +Sections 162-164 + +Page 290 +Travellers Security Charge Act and the Select +Luxury Items Tax Act, or +(3) Subsections (1) and (2) come into force, or are +deemed to have come into force, on September 1, +2022. +165 (1) Subsection 189(4) of the Act is replaced by +the following: +Restriction +(4) A refund shall not be paid until the person has filed +with the Minister or the Minister of Public Safety and +Emergency Preparedness all returns and other records of +which the Minister has knowledge and that are required +to be filed under this Act, the Excise Act, the Excise Tax +Act, the Customs Act, the Income Tax Act, the Air Trav- +ellers Security Charge Act and the Select Luxury Items +Tax Act. +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +166 (1) The +description +of +B +in +paragraph +297(1)(d) of the Act is replaced by the following: +B +is the amount, if any, by which the total of all +amounts, if any, the transferee was assessed under +subsection 325(2) of the Excise Tax Act, subsec- +tion 160(2) of the Income Tax Act or subsection +150(4) of the Select Luxury Items Tax Act in re- +spect of the property exceeds the amount paid by +the transferor in respect of the amounts so as- +sessed, and +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +2005, c. 38 +Canada Border Services Agency Act +167 (1) Paragraph (a) of the definition program +legislation in section 2 of the Canada Border Ser- +vices Agency Act is replaced by the following: +(a) that the Governor in Council or Parliament autho- +rizes the Minister, the Agency, the President or an em- +ployee of the Agency to administer and enforce, in- +cluding the Excise Act, the Special Import Measures +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Consequential Amendments +Excise Act, 2001 +Sections 164-167 + +Page 291 +Act, the Customs Act, the Customs Tariff, the Immi- +gration and Refugee Protection Act, the Excise Act, +2001 and the Select Luxury Items Tax Act; +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +2018, c. 12, s. 186 +Greenhouse Gas Pollution Pricing +Act +168 (1) Section 51 of the Greenhouse Gas Pollu- +tion Pricing Act is replaced by the following: +Restriction on rebate +51 A rebate under this Division is not to be paid to a per- +son at any time unless all returns of which the Minister +has knowledge and that are required to be filed at or be- +fore that time by the person under this Part, the Excise +Tax Act, the Income Tax Act, the Air Travellers Security +Charge Act, the Excise Act, 2001 and the Select Luxury +Items Tax Act have been filed with the Minister. +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +169 (1) Section 54 of the Act is replaced by the +following: +Restriction — bankruptcy +54 If a trustee is appointed under the Bankruptcy and +Insolvency Act to act in the administration of the estate +or succession of a bankrupt, a rebate under this Part that +the bankrupt was entitled to claim before the appoint- +ment must not be paid after the appointment unless all +returns required to be filed in respect of the bankrupt un- +der this Part, the Excise Tax Act, the Income Tax Act, the +Air Travellers Security Charge Act, the Excise Act, 2001 +and the Select Luxury Items Tax Act in respect of periods +ending before the appointment have been filed and all +amounts required under this Part and those Acts to be +paid by the bankrupt in respect of those periods have +been paid. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Consequential Amendments +Canada Border Services Agency Act +Sections 167-169 + +Page 292 +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +170 (1) Subsection 108(7) of the Act is replaced by +the following: +Restriction on rebates +(7) An amount under this section must not be rebated to +a person at any time unless all returns of which the Min- +ister has knowledge and that are required to be filed at or +before that time by the person under this Part, the Excise +Tax Act, the Income Tax Act, the Air Travellers Security +Charge Act, the Excise Act, 2001 and the Select Luxury +Items Tax Act have been filed with the Minister. +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +171 (1) Subsection 109(5) of the Act is replaced by +the following: +Restriction +(5) An amount under this section must not be rebated to +a person at any time unless all returns of which the Min- +ister has knowledge and that are required to be filed at or +before that time by the person under this Part, the Excise +Tax Act, the Income Tax Act, the Air Travellers Security +Charge Act, the Excise Act, 2001 and the Select Luxury +Items Tax Act have been filed with the Minister. +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +172 (1) The +description +of +B +in +paragraph +161(1)(d) of the Act is replaced by the following: +B +is the amount, if any, by which the amount as- +sessed the transferee under subsection 325(2) of +the Excise Tax Act, paragraph 97.44(1)(b) of the +Customs Act, subsection 160(2) of the Income Tax +Act, subsection 297(3) of the Excise Act, 2001 or +subsection 150(4) of the Select Luxury Items Tax +Act in respect of the property exceeds the amount +paid by the transferor in respect of the amount so +assessed, and +(2) Subsection (1) comes into force, or is deemed +to have come into force, on September 1, 2022. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Consequential Amendments +Greenhouse Gas Pollution Pricing Act +Sections 169-172 + +Page 293 +Coordinating Amendments +Bill C-8 +173 (1) Subsections (2) to (31) apply if Bill C-8, in- +troduced in the 1st session of the 44th Parliament +and entitled the Economic and Fiscal Update Im- +plementation Act, 2021 (in this section referred to +as the “other Act”), receives royal assent. +(2) On the first day on which both subsection +12(1) of the other Act and subsection 137(1) of this +Act are in force, subsection 149(3) of the +Bankruptcy and Insolvency Act is amended by +striking out “and” at the end of paragraph (g) +and by replacing paragraph (h) with the follow- +ing: +(h) the Underused Housing Tax Act; and +(i) the Select Luxury Items Tax Act. +(3) On the first day on which both section 13 of +the other Act and section 138 of this Act are in +force, paragraph 462.48(2)(c) of the Criminal +Code is replaced by the following: +(c) the type of information or book, record, writing, +return or other document obtained by or on behalf of +the Minister of National Revenue for the purposes of +Part IX of the Excise Tax Act, the Income Tax Act, the +Excise Act, 2001, the Underused Housing Tax Act or +the Select Luxury Items Tax Act to which access is +sought or that is proposed to be examined or commu- +nicated; and +(4) On the first day on which both subsection +14(1) of the other Act and subsection 140(1) of this +Act are in force, section 77 of the Excise Tax Act is +replaced by the following: +Restriction on refunds and credits +77 A refund shall not be paid, and a credit shall not be +allowed, to a person under this Act until the person has +filed with the Minister all returns and other records of +which the Minister has knowledge that are required to be +filed under the Excise Tax Act, the Income Tax Act, the +Air Travellers Security Charge Act, the Excise Act, 2001, +the Underused Housing Tax Act and the Select Luxury +Items Tax Act. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Coordinating Amendments +Section +173 + +Page 294 +(5) On the first day on which both subsection +15(1) of the other Act and subsection 141(1) of this +Act are in force, subsection 229(2) of the Excise +Tax Act is replaced by the following: +Restriction +(2) A net tax refund for a reporting period of a person +shall not be paid to the person under subsection (1) at +any time unless all returns of which the Minister has +knowledge and that are required to be filed at or before +that time by the person under this Act, the Income Tax +Act, the Air Travellers Security Charge Act, the Excise +Act, 2001, the Underused Housing Tax Act and the Select +Luxury Items Tax Act have been filed with the Minister. +(6) On the first day on which both subsection +16(1) of the other Act and subsection 142(1) of this +Act are in force, subsection 230(2) of the Excise +Tax Act is replaced by the following: +Restriction +(2) An amount paid on account of net tax for a reporting +period of a person shall not be refunded to the person +under subsection (1) at any time unless all returns of +which the Minister has knowledge and that are required +to be filed at or before that time by the person under this +Act, the Income Tax Act, the Air Travellers Security +Charge Act, the Excise Act, 2001, the Underused Housing +Tax Act and the Select Luxury Items Tax Act have been +filed with the Minister. +(7) On the first day on which both subsection +17(1) of the other Act and subsection 143(1) of this +Act are in force, subparagraph 238.1(2)(c)(iii) of +the Excise Tax Act is replaced by the following: +(iii) all amounts required under this Act (other +than this Part), sections 21 and 33 of the Canada +Pension Plan, the Excise Act, the Customs Act, the +Income Tax Act, section 82 and Part VII of the Em- +ployment Insurance Act, the Customs Tariff, the +Excise Act, 2001, the Underused Housing Tax Act +and the Select Luxury Items Tax Act to be remitted +or paid before that time by the registrant have been +remitted or paid, and +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Coordinating Amendments +Section +173 + +Page 295 +(8) On the first day on which both subsection +18(1) of the other Act and subsection 144(1) of this +Act are in force, section 263.02 of the Excise Tax +Act is replaced by the following: +Restriction on rebate +263.02 A rebate under this Part shall not be paid to a +person at any time unless all returns of which the Minis- +ter has knowledge and that are required to be filed at or +before that time by the person under this Act, the Income +Tax Act, the Air Travellers Security Charge Act, the Ex- +cise Act, 2001, the Underused Housing Tax Act and the +Select Luxury Items Tax Act have been filed with the +Minister. +(9) On the first day on which both subsection +19(1) of the other Act and subsection 145(1) of this +Act are in force, subsection 296(7) of the Excise +Tax Act is replaced by the following: +Restriction on refunds +(7) An amount under this section shall not be refunded +to a person at any time unless all returns of which the +Minister has knowledge and that are required to be filed +at or before that time by the person under this Act, the +Income Tax Act, the Air Travellers Security Charge Act, +the Excise Act, 2001, the Underused Housing Tax Act +and the Select Luxury Items Tax Act have been filed with +the Minister. +(10) On the first day on which both subsection +20(1) of the other Act and subsection 147(1) of this +Act are in force, paragraph 155.2(6)(c) of the Fi- +nancial Administration Act is replaced by the +following: +(c) an amount owing by a person to Her Majesty in +right of Canada, or payable by the Minister of National +Revenue to any person, under the Excise Tax Act, the +Income Tax Act, the Air Travellers Security Charge +Act, the Excise Act, 2001, the Softwood Lumber Prod- +ucts Export Charge Act, 2006, the Underused Housing +Tax Act or the Select Luxury Items Tax Act. +(11) On the first day on which both subsection +21(1) of the other Act and subsection 148(1) of this +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Coordinating Amendments +Section +173 + +Page 296 +Act are in force, subsection 12(1) of the Tax Court +of Canada Act is replaced by the following: +Jurisdiction +12 (1) The Court has exclusive original jurisdiction to +hear and determine references and appeals to the Court +on matters arising under the Canada Pension Plan, the +Cultural Property Export and Import Act, Part IX of the +Excise Tax Act, the Old Age Security Act, the Petroleum +and Gas Revenue Tax Act, Part V.1 of the Customs Act, +the Income Tax Act, the Employment Insurance Act, the +Air Travellers Security Charge Act, the Excise Act, 2001, +the Softwood Lumber Products Export Charge Act, 2006, +the Disability Tax Credit Promoters Restrictions Act, +Part 1 of the Greenhouse Gas Pollution Pricing Act, the +Underused Housing Tax Act and the Select Luxury Items +Tax Act when references or appeals to the Court are pro- +vided for in those Acts. +(12) On the first day on which both subsection +21(2) of the other Act and subsection 148(2) of this +Act are in force, subsections 12(3) and (4) of the +Tax Court of Canada Act are replaced by the fol- +lowing: +Further jurisdiction +(3) The Court has exclusive original jurisdiction to hear +and determine questions referred to it under section 310 +or 311 of the Excise Tax Act, section 97.58 of the Customs +Act, section 173 or 174 of the Income Tax Act, section 51 +or 52 of the Air Travellers Security Charge Act, section +204 or 205 of the Excise Act, 2001, section 62 or 63 of the +Softwood Lumber Products Export Charge Act, 2006, +section 121 or 122 of the Greenhouse Gas Pollution Pric- +ing Act, section 45 or 46 of the Underused Housing Tax +Act or section 105 or 106 of the Select Luxury Items Tax +Act. +Extensions of time +(4) The Court has exclusive original jurisdiction to hear +and determine applications for extensions of time under +subsection 28(1) of the Canada Pension Plan, section +33.2 of the Cultural Property Export and Import Act, +section 304 or 305 of the Excise Tax Act, section 97.51 or +97.52 of the Customs Act, section 166.2 or 167 of the In- +come Tax Act, subsection 103(1) of the Employment +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Coordinating Amendments +Section +173 + +Page 297 +Insurance Act, section 45 or 47 of the Air Travellers Se- +curity Charge Act, section 197 or 199 of the Excise Act, +2001, section 115 or 117 of the Greenhouse Gas Pollution +Pricing Act, section 39 or 41 of the Underused Housing +Tax Act or section 99 or 101 of the Select Luxury Items +Tax Act. +(13) On the first day on which both subsection +22(1) of the other Act and subsection 149(1) of this +Act are in force, paragraph 18.29(3)(a) of the Tax +Court of Canada Act is amended by striking out +“or” at the end of subparagraph (viii) and by re- +placing subparagraph (ix) with the following: +(ix) section 39 or 41 of the Underused Housing Tax +Act, or +(x) section 99 or 101 of the Select Luxury Items Tax +Act; and +(14) On the first day on which both subsection +23(1) of the other Act and subsection 150(1) of this +Act are in force, subsection 18.31(2) of the Tax +Court of Canada Act is replaced by the following: +Determination of a question +(2) If it is agreed under section 310 of the Excise Tax Act, +section 97.58 of the Customs Act, section 51 of the Air +Travellers Security Act, section 204 of the Excise Act, +2001, section 62 of the Softwood Lumber Products Ex- +port Act, 2006, section 121 of the Greenhouse Gas Pollu- +tion Pricing Act, section 45 of the Underused Housing +Tax Act or section 105 of the Select Luxury Items Tax Act +that a question should be determined by the Court, sec- +tions 17.1, 17.2 and 17.4 to 17.8 apply, with any modifica- +tions that the circumstances require, in respect of the de- +termination of the question. +(15) On the first day on which both subsection +24(1) of the other Act and subsection 151(1) of this +Act are in force, subsection 18.32(2) of the Tax +Court of Canada Act is replaced by the following: +Provisions applicable to determination of a question +(2) If an application has been made under section 311 of +the Excise Tax Act, section 52 of the Air Travellers Secu- +rity Charge Act, section 205 of the Excise Act, 2001, sec- +tion 63 of the Softwood Lumber Products Export Charge +Act, 2006, section 122 of the Greenhouse Gas Pollution +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Coordinating Amendments +Section +173 + +Page 298 +Pricing Act, section 46 of the Underused Housing Tax +Act or section 106 of the Select Luxury Items Tax Act for +the determination of a question, the application or deter- +mination of the question must, subject to section 18.33, +be determined in accordance with sections 17.1, 17.2 and +17.4 to 17.8, with any modifications that the circum- +stances require. +(16) On the first day on which both subsection +25(1) of the other Act and subsection 156(1) of this +Act are in force, the description of B in para- +graph 97.29(1)(a) of the Customs Act is replaced +by the following: +B +is the amount, if any, by which the amount as- +sessed the transferee under subsection 325(2) of +the Excise Tax Act, subsection 160(2) of the In- +come Tax Act, subsection 297(3) of the Excise Act, +2001, subsection 80(3) of the Underused Housing +Tax Act and subsection 150(4) of the Select Luxu- +ry Items Tax Act in respect of the property ex- +ceeds the amount paid by the transferor in respect +of the amount so assessed, and +(17) On the first day on which both subsection +26(1) of the other Act and subsection 157(1) of this +Act are in force, paragraph 107(5)(g.1) of the Cus- +toms Act is replaced by the following: +(g.1) an official of the Canada Revenue Agency solely +for a purpose relating to the administration or en- +forcement of the Canada Pension Plan, the Excise Act, +the Excise Tax Act, the Income Tax Act, the Employ- +ment Insurance Act, the Excise Act, 2001, the Under- +used Housing Tax Act or the Select Luxury Items Tax +Act; +(18) On the first day on which both subsection +27(1) of the other Act and subsection 158(1) of this +Act are in force, paragraph 18(1)(t) of the Income +Tax Act is amended by striking out “or” at the +end of subparagraph (iii) and by replacing sub- +paragraph (iv) with the following: +(iv) as interest under the Underused Housing Tax +Act, or +(v) as interest under the Select Luxury Items Tax +Act; +(19) On the first day on which both subsection +28(1) of the other Act and subsection 159(1) of this +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Coordinating Amendments +Section +173 + +Page 299 +Act are in force, subsection 164(2.01) of the In- +come Tax Act is replaced by the following: +Withholding of refunds +(2.01) The Minister shall not, in respect of a taxpayer, +refund, repay, apply to other debts or set-off amounts +under this Act at any time unless all returns of which the +Minister has knowledge and that are required to be filed +by the taxpayer at or before that time under this Act, the +Excise Tax Act, the Air Travellers Security Charge Act, +the Excise Act, 2001, the Underused Housing Tax Act +and the Select Luxury Items Tax Act have been filed with +the Minister. +(20) On the first day on which both subsection +29(1) of the other Act and subsection 160(1) of this +Act are in force, the portion of subsection 221.2(2) +of the Income Tax Act before paragraph (a) is re- +placed by the following: +Re-appropriation of amounts +(2) If a particular amount was appropriated to an +amount (in this section referred to as the “debt”) that is +or may become payable by a person under this Act, the +Excise Tax Act, the Air Travellers Security Charge Act, +the Excise Act, 2001, the Underused Housing Tax Act or +the Select Luxury Items Tax Act, the Minister may, on +application by the person, appropriate the particular +amount, or a part of it, to another amount that is or may +become payable under any of those Acts and, for the pur- +poses of any of those Acts, +(21) On the first day on which both subsection +30(1) of the other Act and subsection 162(1) of this +Act are in force, paragraph (a) of the definition +program legislation in section 2 of the Canada +Revenue Agency Act is amended by striking out +“and” at the end of subparagraph (viii) and by re- +placing subparagraph (ix) with the following: +(ix) the Underused Housing Tax Act, and +(x) the Select Luxury Items Tax Act; or +(22) On the first day on which both subsection +31(1) of the other Act and subsection 163(1) of this +Act are in force, subsection 40(4) of the Air Trav- +ellers Security Charge Act is replaced by the fol- +lowing: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Coordinating Amendments +Section +173 + +Page 300 +Restriction +(4) A refund shall not be paid until the person has filed +with the Minister all returns and other records of which +the Minister has knowledge that are required to be filed +under this Act, the Excise Tax Act, the Income Tax Act, +the Excise Act, 2001, the Underused Housing Tax Act +and the Select Luxury Items Tax Act. +(23) On the first day on which both subsection +32(1) of the other Act and subsection 164(1) of this +Act are in force, paragraph 188(6)(a) of the Excise +Act, 2001 is replaced by the following: +(a) the Minister under this Act, the Excise Act, the Ex- +cise Tax Act, the Income Tax Act, the Air Travellers +Security Charge Act, the Underused Housing Tax Act +and the Select Luxury Items Tax Act; or +(24) On the first day on which both subsection +33(1) of the other Act and subsection 164(2) of this +Act are in force, clause 188(7)(b)(ii)(A) of the Ex- +cise Act, 2001 is replaced by the following: +(A) the Minister under this Act, the Excise Act, +the Excise Tax Act, the Income Tax Act, the Air +Travellers Security Charge Act, the Underused +Housing Tax Act and the Select Luxury Items +Tax Act, or +(25) On the first day on which both subsection +34(1) of the other Act and subsection 165(1) of this +Act are in force, subsection 189(4) of the Excise +Act, 2001 is replaced by the following: +Restriction +(4) A refund shall not be paid until the person has filed +with the Minister or the Minister of Public Safety and +Emergency Preparedness all returns and other records of +which the Minister has knowledge and that are required +to be filed under this Act, the Excise Act, the Excise Tax +Act, the Customs Act, the Income Tax Act, the Air Trav- +ellers Security Charge Act, the Underused Housing Tax +Act and the Select Luxury Items Tax Act. +(26) On the first day on which both subsection +35(1) of the other Act and subsection 166(1) of this +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Coordinating Amendments +Section +173 + +Page 301 +Act are in force, the description of B in para- +graph 297(1)(d) of the Excise Act, 2001 is replaced +by the following: +B +is the amount, if any, by which the total of all +amounts, if any, the transferee was assessed under +subsection 325(2) of the Excise Tax Act, subsec- +tion 160(2) of the Income Tax Act, subsection +80(3) of the Underused Housing Tax Act or sub- +section 150(4) of the Select Luxury Items Tax Act +in respect of the property exceeds the amount +paid by the transferor in respect of the amounts so +assessed, and +(27) On the first day on which both subsection +36(1) of the other Act and subsection 168(1) of this +Act are in force, section 51 of the Greenhouse Gas +Pollution Pricing Act is replaced by the follow- +ing: +Restriction on rebate +51 A rebate under this Division is not to be paid to a per- +son at any time unless all returns of which the Minister +has knowledge and that are required to be filed at or be- +fore that time by the person under this Part, the Excise +Tax Act, the Income Tax Act, the Air Travellers Security +Charge Act, the Excise Act, 2001, the Underused Housing +Tax Act and the Select Luxury Items Tax Act have been +filed with the Minister. +(28) On the first day on which both subsection +37(1) of the other Act and subsection 169(1) of this +Act are in force, section 54 of the Greenhouse Gas +Pollution Pricing Act is replaced by the follow- +ing: +Restriction — bankruptcy +54 If a trustee is appointed under the Bankruptcy and +Insolvency Act to act in the administration of the estate +or succession of a bankrupt, a rebate under this Part that +the bankrupt was entitled to claim before the appoint- +ment must not be paid after the appointment unless all +returns required to be filed in respect of the bankrupt un- +der this Part, the Excise Tax Act, the Income Tax Act, the +Air Travellers Security Charge Act, the Excise Act, 2001, +the Underused Housing Tax Act and the Select Luxury +Items Tax Act in respect of periods ending before the ap- +pointment have been filed and all amounts required un- +der this Part and those Acts to be paid by the bankrupt in +respect of those periods have been paid. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Coordinating Amendments +Section +173 + +Page 302 +(29) On the first day on which both subsection +38(1) of the other Act and subsection 170(1) of this +Act are in force, subsection 108(7) of the Green- +house Gas Pollution Pricing Act is replaced by +the following: +Restriction on rebates +(7) An amount under this section must not be rebated to +a person at any time unless all returns of which the Min- +ister has knowledge and that are required to be filed at or +before that time by the person under this Part, the Excise +Tax Act, the Income Tax Act, the Air Travellers Security +Charge Act, the Excise Act, 2001, the Underused Housing +Tax Act and the Select Luxury Items Tax Act have been +filed with the Minister. +(30) On the first day on which both subsection +39(1) of the other Act and subsection 171(1) of this +Act are in force, subsection 109(5) of the Green- +house Gas Pollution Pricing Act is replaced by +the following: +Restriction +(5) An amount under this section must not be rebated to +a person at any time unless all returns of which the Min- +ister has knowledge and that are required to be filed at or +before that time by the person under this Part, the Excise +Tax Act, the Income Tax Act, the Air Travellers Security +Charge Act, the Excise Act, 2001, the Underused Housing +Tax Act and the Select Luxury Items Tax Act have been +filed with the Minister. +(31) On the first day on which both subsection +40(1) of the other Act and subsection 172(1) of this +Act are in force, the description of B in para- +graph 161(1)(d) of the Greenhouse Gas Pollution +Pricing Act is replaced by the following: +B +is the amount, if any, by which the amount as- +sessed the transferee under subsection 325(2) of +the Excise Tax Act, paragraph 97.44(1)(b) of the +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Coordinating Amendments +Section +173 + +Page 303 +Customs Act, subsection 160(2) of the Income Tax +Act, subsection 297(3) of the Excise Act, 2001, sub- +section 80(3) of the Underused Housing Tax Act +or subsection 150(4) of the Select Luxury Items +Tax Act in respect of the property exceeds the +amount paid by the transferor in respect of the +amount so assessed, and +PART 5 +Various Measures +DIVISION 1 +Provisions Relating to Canadian Pacific +Railway Company Tax Exemption +Clause 16 — no force or effect +174 (1) Clause 16 of the contract that is set out in +the schedule to An Act respecting the Canadian +Pacific Railway, chapter 1 of the Statutes of +Canada, 1881, is deemed to be of no force or effect +as of August 29, 1966. +Obligations, rights, etc. extinguished +(2) All obligations and liabilities of Her Majesty +in right of Canada and all rights and privileges of +the Canadian Pacific Railway Company under +that clause 16 arising out of or acquired under +the contract referred to in subsection (1), any Act +of Parliament or any instrument made in the ex- +ercise of a power conferred under an Act of Par- +liament are deemed to have been extinguished +on August 29, 1966. +No liability +175 No action or other proceeding that is based +on or is in respect of clause 16 of the contract re- +ferred to in subsection 174(1) lies or may be insti- +tuted or continued by anyone against Her +Majesty in right of Canada. +No compensation +176 No one is entitled to any compensation from +Her Majesty in right of Canada in connection +with the coming into force of section 174. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 4 Select Luxury Items Tax Act +Coordinating Amendments +Sections 173-176 + +Page 304 +DIVISION 2 +2000, c. 7 +Nisga’a Final Agreement Act +177 (1) Subsections 14(1) and (2) of the Nisga’a +Final Agreement Act are replaced by the follow- +ing: +Taxation Agreement +14 (1) The Taxation Agreement is approved, given effect +and declared valid and, during the period that the Taxa- +tion Agreement is, by its terms, in force, it has the force +of law. +(2) Subsection 14(5) of the Act is repealed. +DIVISION 3 +Safe Drinking Water for First Nations +2013, c. 21 +Safe Drinking Water for First +Nations Act +Repeal +178 The Safe Drinking Water for First Nations +Act, chapter 21 of the Statutes of Canada, 2013, is +repealed. +R.S., c. 1 (5th Supp.) +Income Tax Act +179 (1) Subparagraph 81(1)(g.3)(i) of the Income +Tax Act is amended by striking out “or” at the +end of clause (B), by striking out “and” at the end +of that subparagraph, by adding “or” at the end +of clause (C) and by adding the following after +clause (C): +(D) the Settlement Agreement entered into by +Her Majesty in Right of Canada on September +15, 2021 in respect of the class action relating to +long-term drinking water quality for impacted +First Nations, and +(2) Subsection (1) applies to the 2022 and subse- +quent taxation years. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 2 Nisga’a Final Agreement Act +Sections 177-179 + +Page 305 +DIVISION 4 +Payments in Relation to Transit and +Housing +Maximum payment of $750 million +180 (1) The Minister of Finance may make pay- +ments to the provinces, the total of which may +not exceed $750 million, for the purpose of ad- +dressing municipal and other transit shortfalls +and needs and improving housing supply and af- +fordability. The amount of each payment is to be +determined by the Minister of Finance. +Payments out of C.R.F. +(2) Any amount payable under subsection (1) +may be paid by the Minister of Finance out of the +Consolidated Revenue Fund at the times and in +the manner, and on any terms and conditions, +that the Minister of Finance considers appropri- +ate. +Report +(3) If the Minister of Finance makes a payment to +a province under subsection (1), the Minister +must, within three months after the day on which +the payment is made, prepare a report indicating +the amount of the payment and describing any +terms or conditions established under subsec- +tion (2) in relation to the payment and must +cause the report to be tabled in each House of +Parliament on any of the first 15 days on which +that House is sitting after the report is complet- +ed. +DIVISION 5 +R.S., c. C-3 +Canada Deposit Insurance Corporation +Act +181 (1) Paragraph 5(1)(a) of the Canada Deposit +Insurance Corporation Act is replaced by the fol- +lowing: +(a) the person appointed as the Chairperson under +subsection 6(1); +(a.1) the person appointed as the President and Chief +Executive Officer of the Corporation under subsection +105(5) of the Financial Administration Act; +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 4 Payments in Relation to Transit and Housing +Sections 180-181 + +Page 306 +(2) Paragraph 5(1)(c) of the Act is replaced by the +following: +(c) not more than six other members appointed by the +Minister with the approval of the Governor in Council. +DIVISION 6 +R.S., c. F-8; 1995, c. 17, s. 45 +Federal-Provincial Fiscal +Arrangements Act +182 The +Federal-Provincial +Fiscal +Arrange- +ments Act is amended by adding the following af- +ter section 24.72: +Total payment of $2 billion +24.73 The Minister may pay an additional cash payment +equal to +(a) for Ontario, $775,500,000; +(b) for Quebec, $450,006,000; +(c) for Nova Scotia, $51,800,000; +(d) for New Brunswick, $41,238,000; +(e) for Manitoba, $72,437,000; +(f) for British Columbia, $272,434,000; +(g) for Prince Edward Island, $8,574,000; +(h) for Saskatchewan, $61,759,000; +(i) for Alberta, $232,332,000; +(j) for Newfoundland and Labrador, $27,227,000; +(k) for Yukon, $2,244,000; +(l) for the Northwest Territories, $2,387,000; and +(m) for Nunavut, $2,062,000. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 5 Canada Deposit Insurance Corporation Act +Sections 181-182 + +Page 307 +DIVISION 7 +Borrowings +2017, c. 20, s. 103 +Borrowing Authority Act +183 Paragraphs 5(a) and (b) of the Borrowing +Authority Act are replaced by the following: +(a) amounts borrowed by the Minister under an order +made under paragraph 46.1(c) of the Financial Ad- +ministration Act, other than those borrowed under +such an order made during the period beginning on +March 23, 2021 and ending on May 6, 2021; and +(b) amounts borrowed by the Minister under an order +made under paragraph 46.1(a) of that Act for the pay- +ment of any amount in respect of a debt that was origi- +nally incurred under an order made under paragraph +46.1(c) of that Act, other than in respect of a debt that +was originally incurred under such an order made +during the period beginning on March 23, 2021 and +ending on May 6, 2021. +184 Section 8 of the Act is amended by adding the +following after subsection (2): +Amounts not included +(3) For the purposes of subsection (2), any amounts bor- +rowed by the Minister during the period beginning on +March 23, 2021 and ending on May 6, 2021 under an or- +der made under paragraph 46.1(c) of the Financial Ad- +ministration Act do not count in the calculation of the +amounts referred to in paragraph (1)(b). +R.S., c. F-11 +Financial Administration Act +185 Paragraph 49(1)(a.1) of the Financial Admin- +istration Act is replaced by the following: +(a.1) the money that is borrowed under an order +made under paragraph 46.1(c) of the Financial Ad- +ministration Act, other than that borrowed under +such an order made during the period beginning on +March 23, 2021 and ending on May 6, 2021, and that is +due at the end of the fiscal year to which the Public Ac- +counts relate; and +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 7 Borrowings +Sections 183-185 + +Page 308 +DIVISION 8 +R.S., c. 32 (2nd Supp.) +Pension Benefits Standards Act, 1985 +Amendments to the Act +186 The Pension Benefits Standards Act, 1985 is +amended by adding the following after section +9.16: +Solvency Reserve Accounts +Establishment +9.17 (1) Subject to the regulations, a defined benefit +plan, other than a negotiated contribution plan, may pro- +vide for the establishment of a solvency reserve account +in the plan’s pension fund. +Payments into account +(2) Subject to the regulations, an employer may make +payments into the solvency reserve account. +Restriction on transfers +(3) The administrator shall not transfer into the solvency +reserve account, nor permit to be transferred into that +account, any moneys that are held in the pension fund +outside of that account. +Withdrawals +(4) Despite any terms of the pension plan or any docu- +ment that creates or supports the plan or the pension +fund, amounts may be withdrawn from the solvency re- +serve account in accordance with the regulations. +Non-application +(5) Section 9.2 does not apply with respect to a with- +drawal from the solvency reserve account. +187 Section 10 of the Act is amended by adding +the following after subsection (6): +Governance policy +(7) The administrator of a pension plan shall +(a) establish, before the plan is filed for registration, a +governance policy that contains the prescribed infor- +mation; and +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 8 Pension Benefits Standards Act, 1985 +Sections 186-187 + +Page 309 +(b) ensure that the policy complies with this Act and +the regulations. +Filing not required +(8) The administrator is not required to file the gover- +nance policy for the purposes of subsection (1) or to file +any amendment to the policy for the purposes of subsec- +tion 10.1(1). +Transitional provision +(9) An administrator of a pension plan that was regis- +tered or was filed for registration under this section be- +fore the day on which subsection (7) comes into force +shall, within one year after that day, establish the gover- +nance policy for the plan. +188 (1) Subsection 39(1) of the Act is amended by +adding the following after paragraph (h): +(h.01) respecting solvency reserve accounts; +(2) Subsection 39(1) of the Act is amended by +adding the following after paragraph (n.1): +(n.11) respecting the investment of the assets of a +pension fund; +Coordinating Amendments +2021, c. 23 +189 (1) In this section, other Act means the Bud- +get Implementation Act, 2021, No. 1. +(2) If section 188 of the other Act comes into force +before section 187 of this Act, then +(a) that section 187 is replaced by the following: +187 Section 10 of the Act is amended by adding +the following after subsection (10): +Governance policy +(11) The administrator of a pension plan shall +(a) establish, before the plan is filed for registration, a +governance policy that contains the prescribed infor- +mation; and +(b) ensure that the policy complies with this Act and +the regulations. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 8 Pension Benefits Standards Act, 1985 +Amendments to the Act +Sections 187-189 + +Page 310 +Filing not required +(12) The administrator is not required to file the gover- +nance policy for the purposes of subsection (1) or to file +any amendment to the policy for the purposes of subsec- +tion 10.1(1). +Transitional provision — governance policy +(13) An administrator of a pension plan, other than a ne- +gotiated contribution plan, that was registered or was +filed for registration under this section before the day on +which subsection (11) comes into force shall, within one +year after that day, establish the governance policy for +the plan. +(b) on the day on which that section 187 comes +into force, subsections 10(7) to (10) of the Pen- +sion Benefits Standards Act, 1985 are replaced +by the following: +Funding policy +(7) The administrator of a negotiated contribution plan +shall, before the plan is filed for registration, establish a +funding policy that contains the prescribed information. +Filing not required +(8) The administrator is not required to file the funding +policy for the purposes of subsection (1) or to file any +amendment to the policy for the purposes of subsection +10.1(1). +Compliance — funding policy +(9) The administrator shall ensure that the funding poli- +cy complies with this Act and the regulations. +Transitional provision — negotiated contribution +plans +(10) An administrator of a negotiated contribution plan +that was registered or was filed for registration under this +section before the day on which subsection (7), as enact- +ed by section 188 of the Budget Implementation Act, +2021, No. 1, comes into force shall, within one year after +that day, establish the funding policy referred to in sub- +section (7) and the governance policy referred to in sub- +section (11). +(3) If section 187 of this Act comes into force be- +fore section 188 of the other Act, then that section +188 is replaced by the following: +188 Section 10 of the Pension Benefits Standards +Act, 1985 is amended by adding the following af- +ter subsection (9): +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 8 Pension Benefits Standards Act, 1985 +Coordinating Amendments +Section +189 + +Page 311 +Funding policy +(10) The administrator of a negotiated contribution plan +shall +(a) establish, before the plan is filed for registration, a +funding policy that contains the prescribed informa- +tion; and +(b) ensure that the policy complies with this Act and +the regulations. +Filing not required +(11) The administrator is not required to file the funding +policy for the purposes of subsection (1) or to file any +amendment to the policy for the purposes of subsection +10.1(1). +Transitional provision — funding policy +(12) An administrator of a negotiated contribution plan +that was registered or was filed for registration under this +section before the day on which subsection (10) comes +into force shall establish the funding policy within one +year after that day. +(4) If section 188 of the other Act comes into force +on the same day as section 187 of this Act, then +that section 187 is deemed to have come into +force before that section 188 and subsection (3) +applies as a consequence. +Coming into Force +Order in council +190 (1) Section 186 and subsection 188(1) come +into force on a day to be fixed by order of the +Governor in Council. +Order in council +(2) Section 187 comes into force on a day to be +fixed by order of the Governor in Council. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 8 Pension Benefits Standards Act, 1985 +Coordinating Amendments +Sections 189-190 + +Page 312 +DIVISION 9 +Trade Remedies +R.S., c. S-15 +Special Import Measures Act +Amendments to the Act +191 Section 2 of the Special Import Measures +Act is amended by adding the following after sub- +section (10): +Assessment of injury — impacts on workers +(11) In any assessment of injury under this Act, any im- +pacts on workers employed in the domestic industry shall +be taken into account. +Assessment of retardation — impacts on jobs +(12) In any assessment of retardation under this Act, any +impacts on jobs shall be taken into account. +192 The Act is amended by adding the following +before section 3: +Definition of massive importation +2.1 In this Part, massive importation includes a series +of importations into Canada that in the aggregate are +massive and have occurred within a relatively short peri- +od of time. +193 The portion of paragraph 5(a) of the Act af- +ter subparagraph (i) is replaced by the following: +(ii) injury has been caused by a massive importa- +tion of the goods into Canada and the goods are +likely to seriously undermine the remedial effect of +the duties applicable under subsection 3(1); and +194 Subparagraphs 6(a)(i) and (ii) of the Act are +replaced by the following: +(i) injury has been caused by a massive importation +of the goods into Canada, and +(ii) the goods are likely to seriously undermine the +remedial effect of the duties applicable under sub- +section 3(1), +195 Subsection 31(6) of the Act is replaced by the +following: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 9 Trade Remedies +Sections 191-195 + +Page 313 +Extension of 30-day period +(6) The period of 30 days referred to in subsection (1) is +extended to 45 days if, before the expiry of the 30 days, +the President causes written notice to be given to the +complainant that the period of 30 days is insufficient to +determine whether there is compliance with the condi- +tions referred to in subsection (2) or the condition re- +ferred to in subsection 31.1(1). +196 (1) Paragraphs 32(1)(a) and (b) of the Act are +replaced by the following: +(a) if the complaint is properly documented, cause the +complainant to be informed in writing that the com- +plaint was received and that it is properly document- +ed; or +(b) if the complaint is not properly documented, cause +the complainant to be informed in writing that the +complaint was received and indicate the information +and material needed in order for the complaint to be +properly documented. +(2) Section 32 of the Act is amended by adding the +following after subsection (1): +Notice of complaint +(1.1) If the President receives a properly documented +written complaint under subsection (1), the President +shall cause the government of the country of export to be +notified in writing that the complaint was received and +that it is properly documented. +Timing of notice +(1.2) The notice shall be provided no later than +(a) in the case of a complaint respecting the dumping +of goods, seven days before the day on which the Pres- +ident decides whether or not to cause an investigation +to be initiated; and +(b) in the case of a complaint respecting the subsidiz- +ing of goods, 20 days before the day on which the Pres- +ident decides whether or not to cause an investigation +to be initiated. +197 (1) The portion of subsection 42(1) of the Act +before paragraph (a) is replaced by the follow- +ing: +Tribunal to make inquiry +42 (1) The Tribunal, forthwith after receipt of a notice of +a preliminary determination under subsection 38(3), +shall make inquiry with respect to the following matters: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 9 Trade Remedies +Special Import Measures Act +Sections 195-197 + +Page 314 +(2) The portion of paragraph 42(1)(b) of the Act +after subparagraph (i) is replaced by the follow- +ing: +(ii) injury has been caused by a massive importa- +tion of the goods into Canada and the goods are +likely to seriously undermine the remedial effect of +the duties applicable under subsection 3(1); and +(3) Subparagraphs 42(1)(c)(i) and (ii) of the Act +are replaced by the following: +(i) injury has been caused by a massive importation +of the goods into Canada, and +(ii) the goods are likely to seriously undermine the +remedial effect of the duties applicable under sub- +section 3(1). +198 Paragraph 71(c) of the Act is replaced by the +following: +(c) the change in trade pattern is caused by the impo- +sition of anti-dumping or countervailing duties. +199 Subsection 72(1) of the Act is replaced by the +following: +Initiation of investigation +72 (1) The President shall cause an investigation to be +initiated respecting the circumvention of an order or +finding of the Tribunal, or an order of the Governor in +Council imposing a countervailing duty under section 7, +on the President’s own initiative or, if he or she receives a +written complaint respecting the circumvention, within +45 days after the day on which that complaint is received, +if he or she is of the opinion that there is evidence dis- +closing a reasonable indication that circumvention is oc- +curring. +200 Subsection 76.01(7) of the Act is replaced by +the following: +Expiry of order +(7) An order made on the completion of an interim re- +view, other than an order rescinding an order or finding, +expires on the day on which the Tribunal makes an order +under subsection 76.03(12). +201 (1) The portion of subsection 76.03(1) of the +Act before paragraph (a) is replaced by the fol- +lowing: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 9 Trade Remedies +Special Import Measures Act +Sections 197-201 + +Page 315 +Review +76.03 (1) The Tribunal shall initiate an expiry review +with respect to an order or finding described in any of +subsections 3(1) and (2) and sections 4 to 6 before the ex- +piry of five years after whichever of the following days is +applicable: +(2) Subsections 76.03(2) to (5) of the Act are re- +placed by the following: +Termination of review +(2) The Tribunal may terminate an expiry review at any +time if, in the Tribunal’s opinion, the review is not sup- +ported by domestic producers. Upon terminating a re- +view, the Tribunal shall without delay cause notice of the +termination to be given to the President and all other +persons and governments specified in the rules of the +Tribunal. +(3) The portion of subsection 76.03(6) of the Act +before subparagraph (a)(i) is replaced by the fol- +lowing: +Notice +(6) Upon initiating an expiry review, the Tribunal shall +without delay +(a) cause notice of the review to be given to +(4) Subsection 76.03(6) of the Act is amended by +adding “and” at the end of paragraph (a) and by +repealing paragraph (b). +(5) The portion of subsection 76.03(7) of the Act +before paragraph (a) is replaced by the follow- +ing: +President’s determination and notice +(7) Unless the expiry review is terminated under subsec- +tion (2), the President shall +(6) Paragraph 76.03(12)(a) of the Act is amended +by striking out “or” at the end of subparagraph +(i) and by adding the following after subpara- +graph (ii): +(iii) in respect of which it terminated an expiry re- +view under subsection (2); or +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 9 Trade Remedies +Special Import Measures Act +Section +201 + +Page 316 +(7) Paragraph 76.03(13)(a) of the Act is replaced +by the following: +(a) an order made by the Tribunal under section 75.3 +or subsection 75.4(8) or 75.6(7) amending the order or +finding under review, if that order is made on or after +the day on which the review is initiated under subsec- +tion (1) but before the day on which the order of the +Tribunal is made under subsection (12); and +(8) Subsection 76.03(14) of the Act is replaced by +the following: +Expiry of anti-circumvention order +(14) An order made as a result of a decision by the Presi- +dent setting out a finding of circumvention or an interim +review decision of the President relating to a finding of +circumvention, other than an order rescinding the exten- +sion of duties or exempting an exporter from the exten- +sion of duties, expires on the day on which the Tribunal +makes an order under subsection (12). +202 Paragraph (g) of the definition definitive deci- +sions in subsection 77.01(1) of the Act is replaced +by the following: +(g) an order of the Tribunal under subsection 76.01(4), +203 Paragraph (g) of the definition definitive deci- +sion in subsection 77.1(1) of the Act is replaced by +the following: +(g) an order of the Tribunal under subsection 76.01(4), +204 Section 88.1 of the Act is repealed. +205 Paragraph 96.1(1)(d) of the Act is replaced by +the following: +(d) an order of the Tribunal under subsection +76.01(4); +206 Subparagraph 97(1)(a.1)(v) of the Act is re- +placed by the following: +(v) whether a change in a pattern of trade is caused +by the imposition of an anti-dumping or counter- +vailing duty, and +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 9 Trade Remedies +Special Import Measures Act +Sections 201-206 + +Page 317 +Transitional Provisions +Definitions +207 (1) The following definitions apply in this +section and sections 208 to 211. +commencement day means the day on which this +Act receives royal assent. (date de référence) +former Act means the Special Import Measures +Act as it read on the day before the commence- +ment day. (ancienne loi) +Words and expressions +(2) Words and expressions used in sections 208 to +211 have the same meaning as in the Special Im- +port Measures Act. +Disposition of complaints +208 If, before the commencement day, the Presi- +dent receives a written complaint respecting the +dumping or subsidizing of goods under subsec- +tion 31(1) of the former Act, any proceeding, pro- +cess or action in respect of the complaint is to be +continued and disposed of in accordance with +that Act. +Anti-circumvention complaints +209 If, before the commencement day, the Presi- +dent receives a written complaint under subsec- +tion 72(1) of the former Act respecting the cir- +cumvention of an order or finding of the Tri- +bunal, or an order of the Governor in Council im- +posing a countervailing duty under section 7 of +that Act, any proceeding, process or action in re- +spect of the complaint is to be continued and dis- +posed of in accordance with that Act. +Interim reviews — on request +210 (1) If, before the commencement day, the +Tribunal receives a request to conduct an interim +review of an order or finding, or any aspect of an +order or finding, under subsection 76.01(1) of the +former Act, any interim review is to be initiated +— or, if already initiated, continued — and dis- +posed of in accordance with that Act. +Interim reviews — Tribunal’s initiative +(2) If, before the commencement day, the Tri- +bunal initiates, on its own initiative, an interim +review of an order or finding, or any aspect of an +order or finding, under subsection 76.01(1) of the +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 9 Trade Remedies +Special Import Measures Act +Sections 207-210 + +Page 318 +former Act, the interim review is to be continued +and disposed of in accordance with that Act. +Expiry reviews +211 If, before the commencement day, a notice +of expiry respecting an order or finding has been +published under subsection 76.03(2) of the former +Act, any expiry review in respect of the order or +finding is to be initiated — or, if already initiated, +continued — and disposed of in accordance with +that Act. +R.S., c. 47 (4th Supp.) +Canadian International Trade +Tribunal Act +212 Subsection 2(1) of the Canadian Interna- +tional Trade Tribunal Act is amended by adding +the following in alphabetical order: +trade union means an employee organization that has +been certified under federal or provincial law, or recog- +nized by the employer, as a bargaining agent; (syndicat) +213 Paragraph 16(b) of the Act is replaced by the +following: +(b) consider complaints and extension requests filed +with the Tribunal under this Act by domestic produc- +ers of like or directly competitive goods or by trade +unions whose members are engaged in the Canadian +production of like or directly competitive goods and, if +appropriate, conduct inquiries into the complaints +and extension requests and report on them; +214 (1) Subsection 23(1) of the Act is replaced by +the following: +Filing of complaint +23 (1) Any of the following may file a written complaint +with the Tribunal alleging that goods are being imported +into Canada in such increased quantities and under such +conditions as to cause or threaten serious injury to do- +mestic producers of like or directly competitive goods: +(a) a domestic producer of the like or directly compet- +itive goods; +(b) a person or association acting on behalf of the do- +mestic producer; +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 9 Trade Remedies +Special Import Measures Act +Sections 210-214 + +Page 319 +(c) a trade union whose members are engaged in the +Canadian production of the like or directly competi- +tive goods. +(2) Paragraphs 23(2)(b) and (c) of the Act are re- +placed by the following: +(b) in the case of a complaint filed by or on behalf of a +domestic producer, state an estimate of the total per- +centage of Canadian production of the like or directly +competitive goods that is produced by the producer; +(b.1) in the case of a complaint filed by a trade union, +(i) state an estimate of the total percentage of +Canadian production of the like or directly competi- +tive goods that is produced by its members, and +(ii) provide evidence that one or more domestic +producers of the like or directly competitive goods +support the complaint and state an estimate of the +total percentage of Canadian production of the like +or directly competitive goods that is produced by +those producers; and +(c) make any other representations that the com- +plainant considers relevant to the matter. +(3) Paragraph 23(3)(a) of the English version of +the Act is replaced by the following: +(a) such information as is available to the complainant +to prove the facts referred to in paragraph (2)(a) and +to substantiate the estimates referred to in paragraph +(2)(b) or (b.1); and +215 Paragraph 26(1)(b) of the Act is replaced by +the following: +(b) that the complaint is made by or on behalf of, or +with the support of, domestic producers who produce +a major proportion of domestic production of the like +or directly competitive goods; and +216 Section 30.04 of the Act is amended by adding +the following after subsection (1): +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 9 Trade Remedies +Canadian International Trade Tribunal Act +Sections 214-216 + +Page 320 +Requests — trade unions +(1.1) An extension request may also be filed by a trade +union whose members are engaged in the Canadian pro- +duction of the like or directly competitive goods. +217 (1) Paragraphs 30.05(1)(b) and (c) of the Act +are replaced by the following: +(b) in the case of an extension request filed by or on +behalf of a domestic producer, state an estimate of the +total percentage of Canadian production of the like or +directly competitive goods that is produced by the pro- +ducer; +(b.1) in the case of an extension request filed by a +trade union, +(i) state an estimate of the total percentage of +Canadian production of the like or directly competi- +tive goods that is produced by its members, and +(ii) provide evidence that one or more domestic +producers of the like or directly competitive goods +support the request and state an estimate of the to- +tal percentage of Canadian production of the like or +directly competitive goods that is produced by +those producers; and +(c) make any other representations that the requester +considers relevant to the matter. +(2) Paragraph 30.05(2)(a) of the English version of +the Act is replaced by the following: +(a) such information as is available to the requester to +prove the facts referred to in paragraph (1)(a) and to +substantiate the estimates referred to in paragraph +(1)(b) or (b.1); and +218 Paragraph 30.07(1)(b) of the Act is replaced +by the following: +(b) that the extension request is made by or on behalf +of, or with the support of, domestic producers who +produce a major proportion of domestic production of +the like or directly competitive goods. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 9 Trade Remedies +Canadian International Trade Tribunal Act +Sections 216-218 + +Page 321 +219 Paragraph 39(1)(c) of the Act is replaced by +the following: +(c) specifying any additional information that must +accompany a complaint filed under any of subsections +23(1) to (1.1), 30.01(2), 30.011(1), 30.012(2), 30.11(1), +30.22(1) and 30.23(1) or an extension request filed un- +der subsection 30.04(1) or (1.1) or 30.25(3); and +DIVISION 10 +Corporate Governance of Financial +Institutions +1991, c. 45 +Trust and Loan Companies Act +220 Subsection 160.04(1) of the Trust and Loan +Companies Act is replaced by the following: +Mandatory solicitation +160.04 (1) Subject to subsections (2) and 143(2), the +management of a company shall, concurrently with send- +ing notice of a meeting of shareholders, send a form of +proxy that is in accordance with the regulations to each +shareholder entitled to receive notice of the meeting. +221 (1) Subsections 160.05(1) and (2) of the Act +are replaced by the following: +Soliciting proxies +160.05 (1) A person shall not solicit proxies unless a +proxy circular that is in accordance with the regulations +is sent to the auditor of the company, to each shareholder +whose proxy is solicited and, in the case set out in para- +graph (b), to the company as follows: +(a) in the case of solicitation by or on behalf of the +management of a company, a management proxy cir- +cular, either as an appendix to or as a separate docu- +ment accompanying the notice of the meeting; and +(b) in the case of any other solicitation, a dissident’s +proxy circular stating the purposes of the solicitation. +Exception — solicitation to 15 or fewer shareholders +(1.1) Despite subsection (1), a person may solicit prox- +ies, other than by or on behalf of the management of the +company, without sending a dissident’s proxy circular, if +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 9 Trade Remedies +Canadian International Trade Tribunal Act +Sections 219-221 + +Page 322 +the total number of shareholders whose proxies are so- +licited is 15 or fewer, two or more joint holders being +counted as one shareholder. +Exception — solicitation by public broadcast +(1.2) Despite subsection (1), a person may solicit prox- +ies, other than by or on behalf of the management of the +company, without sending a dissident’s proxy circular if +the solicitation is, in the prescribed circumstances, con- +veyed by public broadcast, speech or publication. +Copy to Superintendent +(2) A person who sends a management proxy circular or +dissident’s proxy circular shall concurrently send to the +Superintendent a copy of it together with the form of +proxy, any other documents for use in connection with +the meeting and, in the case of a management proxy cir- +cular, a copy of the notice of meeting. +(2) Subsection 160.05(4) of the Act is replaced by +the following: +Publication +(4) The Superintendent shall publish in a publication +generally available to the public, a notice of a decision +made by the Superintendent granting an exemption un- +der subsection (3). +222 Section 160.071 of the Act is replaced by the +following: +Regulations +160.071 The Governor in Council may make regulations +(a) respecting the powers that may be granted by a +shareholder in a form of proxy; +(b) respecting proxy circulars and forms of proxy, in- +cluding the form and content of those documents; and +(c) respecting the conditions under which a company +is exempt from any of the requirements of sections +160.02 to 160.07. +1991, c. 47 +Insurance Companies Act +223 Subsection 164.03(1) of the Insurance Com- +panies Act is replaced by the following: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 10 Corporate Governance of Financial Institutions +Trust and Loan Companies Act +Sections 221-223 + +Page 323 +Mandatory solicitation +164.03 (1) Subject to subsections (2) and 144(2), the +management of a company shall, concurrently with send- +ing notice of a meeting of shareholders and policyhold- +ers, send a form of proxy that is in accordance with the +regulations to each shareholder entitled to receive notice +of the meeting and to each policyholder entitled to re- +ceive notice of the meeting under section 143. +224 (1) Subsections 164.04(1) and (2) of the Act +are replaced by the following: +Soliciting proxies +164.04 (1) A person shall not solicit proxies unless a +proxy circular that is in accordance with the regulations +is sent to the auditor of the company, to each shareholder +or policyholder whose proxy is solicited and, in the case +set out in paragraph (b), to the company as follows: +(a) in the case of solicitation by or on behalf of the +management of a company, a management proxy cir- +cular, either as an appendix to or as a separate docu- +ment accompanying the notice of the meeting; and +(b) in the case of any other solicitation, a dissident’s +proxy circular stating the purposes of the solicitation. +Exception — limited solicitation +(1.1) Despite subsection (1), a person may solicit prox- +ies, other than by or on behalf of the management of the +company, without sending a dissident’s proxy circular, if +the total number of shareholders and policyholders +whose proxies are solicited is 15 or fewer, with two or +more joint holders being counted as one shareholder. +Exception — solicitation by public broadcast +(1.2) Despite subsection (1), a person may solicit prox- +ies, other than by or on behalf of the management of the +company, without sending a dissident’s proxy circular if +the solicitation is, in the prescribed circumstances, con- +veyed by public broadcast, speech or publication. +Copy to Superintendent +(2) A person who sends a management proxy circular or +dissident’s proxy circular shall concurrently send to the +Superintendent a copy of it together with the form of +proxy, any other documents for use in connection with +the meeting and, in the case of a management proxy cir- +cular, a copy of the notice of meeting. +(2) Subsection 164.04(4) of the Act is replaced by +the following: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 10 Corporate Governance of Financial Institutions +Insurance Companies Act +Sections 223-224 + +Page 324 +Reporting exemptions +(4) The Superintendent shall publish in a publication +generally available to the public, a notice of a decision +made by the Superintendent granting an exemption un- +der subsection (3). +225 Section 164.061 of the Act is replaced by the +following: +Regulations +164.061 The Governor in Council may make regulations +(a) respecting the powers that may be granted by a +shareholder or a policyholder in a form of proxy; +(b) respecting proxy circulars and forms of proxy, in- +cluding the form and content of those documents; and +(c) respecting the conditions under which a company +is exempt from any of the requirements of sec- +tions 164.01 to 164.06. +226 Subsection 788(1) of the Act is replaced by +the following: +Mandatory solicitation +788 (1) Subject to subsections (2) and 768(2), the man- +agement of an insurance holding company shall, concur- +rently with sending notice of a meeting of shareholders, +send a form of proxy that is in accordance with the regu- +lations to each shareholder entitled to receive notice of +the meeting under section 767. +227 (1) Subsections 789(1) and (2) of the Act are +replaced by the following: +Soliciting proxies +789 (1) A person shall not solicit proxies unless a proxy +circular that is in accordance with the regulations is sent +to the auditor of the insurance holding company, to each +shareholder whose proxy is solicited and, in the case set +out in paragraph (b), to the bank as follows: +(a) in the case of solicitation by or on behalf of the +management of an insurance holding company, a +management proxy circular, either as an appendix to +or as a separate document accompanying the notice of +the meeting; and +(b) in the case of any other solicitation, a dissident’s +proxy circular stating the purposes of the solicitation. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 10 Corporate Governance of Financial Institutions +Insurance Companies Act +Sections 224-227 + +Page 325 +Exception — limited solicitation +(1.1) Despite subsection (1), a person may solicit prox- +ies, other than by or on behalf of the management of the +insurance holding company, without sending a dissi- +dent’s proxy circular, if the total number of shareholders +whose proxies are solicited is 15 or fewer, with two or +more joint holders being counted as one shareholder. +Exception — solicitation by public broadcast +(1.2) Despite subsection (1), a person may solicit prox- +ies, other than by or on behalf of the management of the +insurance holding company, without sending a dissi- +dent’s proxy circular if the solicitation is, in the pre- +scribed circumstances, conveyed by public broadcast, +speech or publication. +Copy to Superintendent +(2) A person who sends a management proxy circular or +dissident’s proxy circular shall concurrently send to the +Superintendent a copy of it together with the form of +proxy, any other documents for use in connection with +the meeting and, in the case of a management proxy cir- +cular, a copy of the notice of meeting. +(2) Subsection 789(4) of the Act is replaced by the +following: +Reporting exemptions +(4) The Superintendent shall publish in a publication +generally available to the public, a notice of a decision +made by the Superintendent granting an exemption un- +der subsection (3). +228 Section 791.1 of the Act is replaced by the fol- +lowing: +Regulations +791.1 The Governor in Council may make regulations +(a) respecting the powers that may be granted by a +shareholder in a form of proxy; +(b) respecting proxy circulars and forms of proxy, in- +cluding the form and content of those documents; and +(c) respecting the conditions under which an insur- +ance holding company is exempt from any of the re- +quirements of sections 786 to 791. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 10 Corporate Governance of Financial Institutions +Insurance Companies Act +Sections 227-228 + +Page 326 +2005, c. 54 +An Act to amend certain Acts in +relation to financial institutions +229 Subsection 239(2) of the English version of +An Act to amend certain Acts in relation to fi- +nancial institutions is amended by replacing the +subparagraphs (a)(i) and (ii) of the definition so- +licitation that it enacts with the following: +(i) a request for a proxy whether or not accompa- +nied by or included in a form of proxy, +(ii) a request to execute or not to execute or, in +Quebec, to sign or not to sign a form of proxy or to +revoke a proxy, +230 Subsection 322(2) of the English version of +the Act is amended by replacing the subpara- +graphs (a)(i) and (ii) of the definition solicitation +that it enacts with the following: +(i) a request for a proxy whether or not accompa- +nied by or included in a form of proxy, +(ii) a request to execute or not to execute or, in +Quebec, to sign or not to sign a form of proxy or to +revoke a proxy, +231 Subsection 392(2) of the English version of +the Act is amended by replacing the subpara- +graphs (a)(i) and (ii) of the definition solicitation +that it enacts with the following: +(i) a request for a proxy whether or not accompa- +nied by or included in a form of proxy, +(ii) a request to execute or not to execute or, in +Quebec, to sign or not to sign a form of proxy or to +revoke a proxy, +Coordinating Amendments +2005, c. 54 +232 (1) In this section, other Act means the An +Act to amend certain Acts in relation to finan- +cial institutions. +(2) If subsection 239(2) of the other Act comes in- +to force before section 229 of this Act, then +(a) that section 229 is deemed never to have +come into force and is repealed; and +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 10 Corporate Governance of Financial Institutions +An Act to amend certain Acts in relation to financial institutions +Sections 229-232 + +Page 327 +(b) subparagraphs (a)(i) and (ii) of the defini- +tion solicitation in section 164 of the English +version of the Insurance Companies Act are +replaced by the following: +(i) a request for a proxy whether or not accompa- +nied by or included in a form of proxy, +(ii) a request to execute or not to execute or, in +Quebec, to sign or not to sign a form of proxy or to +revoke a proxy, +(3) If subsection 239(2) of the other Act comes in- +to force on the same day as section 229 of this Act, +then that section 229 is deemed to have come into +force before that subsection 239(2). +(4) If subsection 322(2) of the other Act comes in- +to force before section 230 of this Act, then +(a) that section 230 is deemed never to have +come into force and is repealed; and +(b) subparagraphs (a)(i) and (ii) of the defini- +tion solicitation in section 785 of the English +version of the Insurance Companies Act are +replaced by the following: +(i) a request for a proxy whether or not accompa- +nied by or included in a form of proxy, +(ii) a request to execute or not to execute or, in +Quebec, to sign or not to sign a form of proxy or to +revoke a proxy, +(5) If subsection 322(2) of the other Act comes in- +to force on the same day as section 230 of this Act, +then that section 230 is deemed to have come into +force before that subsection 322(2). +(6) If subsection 392(2) of the other Act comes in- +to force before section 231 of this Act, then +(a) that section 231 is deemed never to have +come into force and is repealed; and +(b) subparagraphs (a)(i) and (ii) of the defini- +tion solicitation in section 160.01 of the English +version of the Trust and Loan Companies Act +are replaced by the following: +(i) a request for a proxy whether or not accompa- +nied by or included in a form of proxy, +(ii) a request to execute or not to execute or, in +Quebec, to sign or not to sign a form of proxy or to +revoke a proxy, +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 10 Corporate Governance of Financial Institutions +Coordinating Amendments +Section +232 + +Page 328 +(7) If subsection 392(2) of the other Act comes in- +to force on the same day as section 231 of this Act, +then that section 231 is deemed to have come into +force before that subsection 392(2). +DIVISION 11 +1991, c. 47 +Insurance Companies Act +Amendment to the Act +233 Section 476 of the Insurance Companies Act +is renumbered as subsection 476(1) and is amend- +ed by adding the following: +Exception +(2) A property and casualty company, or a marine com- +pany, need not include in the aggregate amount calculat- +ed for the purposes of subsection (1) the value of any +debt obligation if the value of the debt obligation is in- +cluded as part of the regulatory capital of the company. +Coming into Force +January 1, 2023 +234 This Division comes into force on January 1, +2023. +DIVISION 12 +Prohibition on the Purchase of +Residential Property by Non- +Canadians Act +Enactment of Act +Enactment +235 The Prohibition on the Purchase of Residen- +tial Property by Non-Canadians Act is enacted +as follows: +An Act to prohibit the purchase of residential proper- +ty by non-Canadians +Short title +1 This Act may be cited as the Prohibition on the Pur- +chase of Residential Property by Non-Canadians Act. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 10 Corporate Governance of Financial Institutions +Coordinating Amendments +Sections 232-235 + +Page 329 +Definitions +2 The following definitions apply in this Act. +common-law partner, in relation to an individual, +means a person who is cohabiting with the individual in a +conjugal relationship, having so cohabited for a period of +at least one year. (conjoint de fait) +control has the meaning assigned by the regulations. +(contrôle) +dwelling unit means a residential unit that contains +private kitchen facilities, a private bath and a private liv- +ing area. (local d’habitation) +Minister means the federal minister designated under +section 3. (ministre) +non-Canadian means +(a) an individual who is neither a Canadian citizen nor +a person registered as an Indian under the Indian Act +nor a permanent resident; +(b) a corporation that is incorporated otherwise than +under the laws of Canada or a province; +(c) a corporation incorporated under the laws of +Canada or a province whose shares are not listed on a +stock exchange in Canada for which a designation un- +der section 262 of the Income Tax Act is in effect and +that is controlled by a person referred to in paragraph +(a) or (b); and +(d) a prescribed person or entity. (non-Canadien) +permanent resident has the same meaning as in sub- +section 2(1) of the Immigration and Refugee Protection +Act. (résident permanent) +prescribed means prescribed by regulation. (Version +anglaise seulement) +residential property means any real property or im- +movable, other than a prescribed real property or im- +movable, that is situated in Canada and that is +(a) a detached house or similar building, containing +not more than three dwelling units, together with that +proportion of the appurtenances to the building and +the land subjacent or immediately contiguous to the +building that is reasonably necessary for its use and +enjoyment as a place of residence for individuals; +(b) a part of a building that is a semi-detached house, +rowhouse unit, residential condominium unit or other +similar premises that is, or is intended to be, a +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 12 Prohibition on the Purchase of Residential Property by Non-Canadians Act +Enactment of Act +Section +235 + +Page 330 +separate parcel or other division of real property or +immovable owned, or intended to be owned, apart +from any other unit in the building, together with that +proportion of any common areas and other appurte- +nances to the building and the land subjacent or im- +mediately contiguous to the building that is at- +tributable to the house, unit or premises and that is +reasonably necessary for its use and enjoyment as a +place of residence for individuals; or +(c) any prescribed real property or immovable. (im- +meuble résidentiel) +Designation of Minister +3 The Governor in Council may, by order, designate any +federal minister to be the Minister for the purposes of +this Act. +Prohibition +4 (1) Despite section 34 of the Citizenship Act, it is pro- +hibited for a non-Canadian to purchase, directly or indi- +rectly, any residential property. +Exception — persons +(2) Subsection (1) does not apply to +(a) a temporary resident within the meaning of the +Immigration and Refugee Protection Act who satis- +fies prescribed conditions; +(b) a protected person within the meaning of subsec- +tion 95(2) of that Act; +(c) an individual who is a non-Canadian and who pur- +chases residential property in Canada with their +spouse or common-law partner if the spouse or com- +mon law-partner is a Canadian citizen, person regis- +tered as an Indian under the Indian Act, permanent +resident or person referred to in paragraph (a) or (b); +or +(d) a person of a prescribed class of persons. +Exception — circumstances +(3) Subsection (1) does not apply in prescribed circum- +stances. +Foreign state +(4) For greater certainty, nothing in subsection (1) is to +be construed as hindering a foreign state from purchas- +ing residential property for diplomatic or consular pur- +poses. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 12 Prohibition on the Purchase of Residential Property by Non-Canadians Act +Enactment of Act +Section +235 + +Page 331 +Non-application +(5) Subsection (1) does not apply if the non-Canadian +becomes liable or assumes liability under an agreement +of purchase and sale of the residential property before +the day on which this Act comes into force. +Validity +5 The contravention of section 4 does not affect the va- +lidity of the sale of the residential property to which the +contravention relates. +Offence +6 (1) Every non-Canadian that contravenes section 4 +and every person or entity that counsels, induces, aids or +abets or attempts to counsel, induce, aid or abet a non- +Canadian to purchase, directly or indirectly, any residen- +tial property knowing that the non-Canadian is prohibit- +ed under this Act from purchasing the residential proper- +ty is guilty of an offence and liable on summary convic- +tion to a fine of not more than $10,000. +Party to offence +(2) If a corporation or entity commits an offence, any of +the following persons that directed, authorized, assented +to, acquiesced in or participated in the commission of the +offence is a party to and liable for the offence whether or +not the corporation or entity has been prosecuted or con- +victed: +(a) an officer, director or agent or mandatary of the +corporation or entity; +(b) a senior official of the corporation or entity; +(c) any individual authorized to exercise managerial +or supervisory functions on behalf of the corporation +or entity. +Order +7 (1) If a non-Canadian is convicted of having contra- +vened section 4, the superior court of the province in +which the residential property to which the contraven- +tion relates is situated may, on application of the Minis- +ter, order the residential property to be sold in the pre- +scribed manner and under prescribed conditions. +Terms +(2) Subject to the regulations, the superior court may +make the order subject to any terms that it considers ap- +propriate. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 12 Prohibition on the Purchase of Residential Property by Non-Canadians Act +Enactment of Act +Section +235 + +Page 332 +Regulations +8 (1) The Governor in Council may, on the recommen- +dation of the Minister after consultation with the Minis- +ter of Finance, make regulations +(a) defining “control” for the purposes of this Act; +(b) respecting what constitutes a purchase for the pur- +poses of this Act; +(c) respecting the making of orders under section 7; +and +(d) prescribing anything that by this Act is to be pre- +scribed. +Paragraph (1)(c) +(2) Regulations made under paragraph (1)(c) must pro- +vide that no non-Canadian receive from the proceeds +that results from a sale of a residential property ordered +under section 7 more than the purchase price they paid +for the residential property. +Repeal +Repeal +236 The Prohibition on the Purchase of Residen- +tial Property by Non-Canadians Act is repealed. +Coming into Force +Coming into force +237 (1) Section 235 comes into force on January +1, 2023. +Second anniversary +(2) Section 236 comes into force on the second an- +niversary of the day on which section 235 comes +into force. +DIVISION 13 +R.S., c. P-1 +Parliament of Canada Act +Amendments to the Act +238 Subsection 19.1(3) of the Parliament of +Canada Act is replaced by the following: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 12 Prohibition on the Purchase of Residential Property by Non-Canadians Act +Enactment of Act +Sections 235-238 + +Page 333 +Composition of Committee +(3) The Leader of the Government in the Senate or Gov- +ernment Representative in the Senate, or his or her nom- +inee, the Leader of the Opposition in the Senate, or his or +her nominee, and the Leader or Facilitator of every other +recognized party or parliamentary group in the Senate, or +his or her nominee, may, in accordance with the rules of +the Senate, change the membership of the Committee +from time to time, including during periods of proroga- +tion or dissolution. +239 Section 20.1 of the Act is replaced by the fol- +lowing: +Appointment +20.1 The Governor in Council shall, by commission un- +der the Great Seal, appoint a Senate Ethics Officer after +consultation with the Leader of the Government in the +Senate or Government Representative in the Senate, the +Leader of the Opposition in the Senate and the Leader or +Facilitator of every other recognized party or parliamen- +tary group in the Senate and after approval of the ap- +pointment by resolution of the Senate. +240 The Act is amended by adding the following +after section 62.3: +Additional Annual Allowances of +Senators Beginning on July 1, 2022 +Additional annual allowances — senators +62.4 (1) Despite section 62.3, beginning on July 1, 2022 +there shall be paid to the following senators the following +additional annual allowances: +(a) the senator occupying the position of Leader of the +Government in the Senate or Government Represen- +tative in the Senate, unless he or she is in receipt of a +salary under the Salaries Act, $90,500; +(b) the senator occupying the position of Leader of the +Opposition in the Senate, $42,800; +(c) the senator occupying the position of Leader or +Facilitator of the recognized party or parliamentary +group in the Senate that consists of the greatest num- +ber of senators, other than the recognized party or +parliamentary group to which a senator referred to in +paragraph (a) or (b) belongs, $42,800; +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 13 Parliament of Canada Act +Amendments to the Act +Sections 238-240 + +Page 334 +(d) the senator occupying the position of Leader or +Facilitator of the recognized party or parliamentary +group in the Senate that consists of the second great- +est number of senators, other than the recognized par- +ty or parliamentary group to which a senator referred +to in paragraph (a) or (b) belongs, $21,300; +(e) the senator occupying the position of Leader or +Facilitator of the recognized party or parliamentary +group in the Senate that consists of the third greatest +number of senators, other than the recognized party +or parliamentary group to which a senator referred to +in paragraph (a) or (b) belongs, $21,300; +(f) the senator occupying the position of Deputy Lead- +er of the Government in the Senate or Legislative +Deputy to the Government Representative in the +Senate, $42,800; +(g) the senator occupying the position of Deputy +Leader of the Opposition in the Senate, $27,000; +(h) the senator occupying the position of Deputy +Leader or Deputy Facilitator to the senator referred to +in paragraph (c), $27,000; +(i) the senator occupying the position of Deputy Lead- +er or Deputy Facilitator to the senator referred to in +paragraph (d), $13,400; +(j) the senator occupying the position of Deputy Lead- +er or Deputy Facilitator to the senator referred to in +paragraph (e), $13,400; +(k) the senator occupying the position of Government +Whip in the Senate or Government Liaison in the +Senate, $12,900; +(l) the senator occupying the position of Opposition +Whip in the Senate, $7,400; +(m) the senator occupying the position of Whip or Li- +aison of the recognized party or parliamentary group +in the Senate whose Leader or Facilitator is referred to +in paragraph (c), $7,400; +(n) the senator occupying the position of Whip or Li- +aison of the recognized party or parliamentary group +in the Senate whose Leader or Facilitator is referred to +in paragraph (d), $3,700; +(o) the senator occupying the position of Whip or Li- +aison of the recognized party or parliamentary group +in the Senate whose Leader or Facilitator is referred to +in paragraph (e), $3,700; +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 13 Parliament of Canada Act +Amendments to the Act +Section +240 + +Page 335 +(p) the senator occupying the position of Chair of the +Caucus of the Government in the Senate, $7,400; +(q) the senator occupying the position of Chair of the +Caucus of the Opposition in the Senate, $6,400; +(r) the senator occupying the position of Deputy Whip +or Deputy Liaison of the recognized party or parlia- +mentary group in the Senate whose Leader or Facilita- +tor is referred to in paragraph (c), $3,200; +(s) the senator occupying the position of Deputy Whip +or Deputy Liaison of the recognized party or parlia- +mentary group in the Senate whose Leader or Facilita- +tor is referred to in paragraph (d), $1,500; +(t) the senator occupying the position of Deputy Whip +or Deputy Liaison of the recognized party or parlia- +mentary group in the Senate whose Leader or Facilita- +tor is referred to in paragraph (e), $1,500; +(u) the senator occupying the position of Deputy Gov- +ernment Whip in the Senate or Deputy Government +Liaison in the Senate, $6,400; and +(v) the senator occupying the position of Deputy Op- +position Whip in the Senate, $3,200. +Subsequent fiscal years +(2) Despite section 62.3, the additional annual allowance +that shall be paid for each fiscal year after March 31, 2023 +to a senator referred to in subsection (1) is the additional +annual allowance for the previous fiscal year plus the +amount obtained by multiplying that additional annual +allowance by the index described in section 67.1 for the +previous calendar year. +241 Sections 67 and 67.1 of the Act are replaced by +the following: +Rounding of amounts +67 The salaries and allowances payable to members of +the Senate and the House of Commons under sections +55.1 and 62.1 to 62.4 of this Act and section 4.1 of the +Salaries Act shall be rounded down to the nearest hun- +dred dollars. +Index +67.1 The index referred to in paragraph 55.1(2)(b) and +subsections 62.1(2), 62.2(2), 62.3(2) and (4) and 62.4(2) +for a calendar year is the index of the average percentage +increase in base-rate wages for the calendar year, result- +ing from major settlements negotiated with bargaining +units of 500 or more employees in the private sector in +Canada, as published by the Department of Employment +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 13 Parliament of Canada Act +Amendments to the Act +Sections 240-241 + +Page 336 +and Social Development within three months after the +end of that calendar year. +242 The portion of subsection 71.1(1) of the Act +before paragraph (a) is replaced by the follow- +ing: +Entitlement +71.1 (1) A member of the Senate or the House of Com- +mons who resigns by reason of disability may elect to re- +ceive an annual disability allowance equal to 70% of their +annual salaries and allowances under sections 55.1 and +62.1 to 62.4 of this Act and section 4.1 of the Salaries Act, +on the date of resignation, if at the time of their resigna- +tion, the member +243 Paragraph 79.1(1)(a) of the Act is replaced by +the following: +(a) the Leader of the Government in the Senate or +Government Representative in the Senate, the Leader +of the Opposition in the Senate and the Leader or Fa- +cilitator of every other recognized party or parliamen- +tary group in the Senate; and +R.S., c. M-5 +Consequential Amendment to the +Members of Parliament Retiring +Allowances Act +244 The definition annual allowance in subsection +2(1) of the Members of Parliament Retiring Al- +lowances Act is replaced by the following: +annual allowance means an annual allowance payable +to a member under section 62, 62.3 or 62.4 of the Parlia- +ment of Canada Act or payable to a member under an +appropriation Act as Deputy Chair or Assistant Deputy +Chair of a committee. (indemnité annuelle) +Related Amendments +R.S., c. A-1 +Access to Information Act +245 Subsection 54(1) of the Access to Informa- +tion Act is replaced by the following: +Appointment +54 (1) The Governor in Council shall, by commission +under the Great Seal, appoint an Information Commis- +sioner after consultation with the Leader of the Govern- +ment in the Senate or Government Representative in the +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 13 Parliament of Canada Act +Amendments to the Act +Sections 241-245 + +Page 337 +Senate, the Leader of the Opposition in the Senate, the +Leader or Facilitator of every other recognized party or +parliamentary group in the Senate and the leader of ev- +ery recognized party in the House of Commons and ap- +proval of the appointment by resolution of the Senate +and House of Commons. +R.S., c. A-17 +Auditor General Act +246 Subsection 3(1) of the Auditor General Act is +replaced by the following: +Appointment +3 (1) The Governor in Council shall, by commission un- +der the Great Seal, appoint an Auditor General of Canada +after consultation with the Leader of the Government in +the Senate or Government Representative in the Senate, +the Leader of the Opposition in the Senate, the Leader or +Facilitator of every other recognized party or parliamen- +tary group in the Senate and the leader of every recog- +nized party in the House of Commons and approval of +the appointment by resolution of the Senate and House +of Commons. +R.S., c. P-21 +Privacy Act +247 Subsection 53(1) of the Privacy Act is re- +placed by the following: +Appointment +53 (1) The Governor in Council shall, by commission +under the Great Seal, appoint a Privacy Commissioner af- +ter consultation with the Leader of the Government in +the Senate or Government Representative in the Senate, +the Leader of the Opposition in the Senate, the Leader or +Facilitator of every other recognized party or parliamen- +tary group in the Senate and the leader of every recog- +nized party in the House of Commons and approval of +the appointment by resolution of the Senate and House +of Commons. +R.S., c. 22 (4th Supp.) +Emergencies Act +248 Subsection 62(2) of the Emergencies Act is +replaced by the following: +Membership +(2) The Parliamentary Review Committee shall include +at least one member of the House of Commons from each +party that has a recognized membership of 12 or more +persons in that House and at least the Leader of the +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 13 Parliament of Canada Act +Related Amendments +Sections 245-248 + +Page 338 +Government in the Senate or Government Representa- +tive in the Senate, or his or her nominee, the Leader of +the Opposition in the Senate, or his or her nominee, and +the Leader or Facilitator who is referred to in any of +paragraphs 62.4(1)(c) to (e) of the Parliament of Canada +Act, or his or her nominee. +R.S., c. 31 (4th Supp.) +Official Languages Act +249 Subsection 49(1) of the Official Languages +Act is replaced by the following: +Appointment +49 (1) The Governor in Council shall, by commission +under the Great Seal, appoint a Commissioner of Official +Languages for Canada after consultation with the Leader +of the Government in the Senate or Government Repre- +sentative in the Senate, the Leader of the Opposition in +the Senate, the Leader or Facilitator of every other recog- +nized party or parliamentary group in the Senate and the +leader of every recognized party in the House of Com- +mons and approval of the appointment by resolution of +the Senate and House of Commons. +R.S., c. 44 (4th Supp.); 2006, c. 9, s. 66 +Lobbying Act +250 Subsection 4.1(1) of the Lobbying Act is re- +placed by the following: +Commissioner of Lobbying +4.1 (1) The Governor in Council shall, by commission +under the Great Seal, appoint a Commissioner of Lobby- +ing after consultation with the Leader of the Government +in the Senate or Government Representative in the +Senate, the Leader of the Opposition in the Senate, the +Leader or Facilitator of every other recognized party or +parliamentary group in the Senate and the leader of ev- +ery recognized party in the House of Commons and ap- +proval of the appointment by resolution of the Senate +and House of Commons. +2005, c. 46 +Public Servants Disclosure Protection Act +251 Subsection 39(1) of the Public Servants Dis- +closure Protection Act is replaced by the follow- +ing: +Appointment +39 (1) The Governor in Council shall, by commission +under the Great Seal, appoint a Public Sector Integrity +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 13 Parliament of Canada Act +Related Amendments +Sections 248-251 + +Page 339 +Commissioner after consultation with the Leader of the +Government in the Senate or Government Representa- +tive in the Senate, the Leader of the Opposition in the +Senate, the Leader or Facilitator of every other recog- +nized party or parliamentary group in the Senate and the +leader of every recognized party in the House of Com- +mons and approval of the appointment by resolution of +the Senate and House of Commons. +2017, c. 15 +National Security and Intelligence Committee of +Parliamentarians Act +252 Subsection 5(2) of the National Security and +Intelligence Committee of Parliamentarians Act +is replaced by the following: +Consultation +(2) A member of the Senate may be appointed to the +Committee only after the Prime Minister has consulted +with the Leader of the Government in the Senate or Gov- +ernment Representative in the Senate, the Leader of the +Opposition in the Senate and the Leader or Facilitator of +every other recognized party or parliamentary group in +the Senate. +2019, c. 13, s. 2 +National Security and Intelligence Review Agency Act +253 Paragraphs 4(2)(a) and (b) of the National +Security and Intelligence Review Agency Act are +replaced by the following: +(a) the Leader of the Government in the Senate or +Government Representative in the Senate and the +Leader of the Opposition in the Senate; +(b) the Leader or Facilitator of every recognized party +or parliamentary group in the Senate; +Coming into Force +Order in council +254 This Division comes into force on a day to be +fixed by order of the Governor in Council. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 13 Parliament of Canada Act +Related Amendments +Sections 251-254 + +Page 340 +DIVISION 14 +R.S., c. F-11 +Financial Administration Act +255 Section 7 of the Financial Administration +Act is amended by adding the following after sub- +section (3): +Services to departments, Crown corporations and +other entities +(4) The Treasury Board may, in carrying out its responsi- +bilities under subsection (1), provide services to depart- +ments and Crown corporations. With the authorization of +the Governor in Council, it may also provide these ser- +vices to a provincial government, a municipality in +Canada, a provincial or municipal public body or any +other public body performing a function of government +in Canada. +Access to Information Act +(5) For greater certainty, for the purposes of the Access +to Information Act, the records of an entity to which the +Treasury Board provides services under subsection (4) +that are, on behalf of that entity, contained in or carried +on the Treasury Board’s information technology systems +are not under the control of the Treasury Board. +Privacy Act +(6) For greater certainty, for the purposes of the Privacy +Act, personal information that is collected by an entity to +which the Treasury Board provides services under sub- +section (4) and that is, on behalf of that entity, contained +in or carried on the Treasury Board’s information tech- +nology systems is not under the control of the Treasury +Board. +DIVISION 15 +R.S., c. C-34; R.S., c. 19 (2nd Supp.), s. 19 +Competition Act +Amendments to the Act +256 (1) Subsection 11(2) of the Competition Act is +replaced by the following: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 14 Financial Administration Act +Sections 255-256 + +Page 341 +Records or information in possession of affiliate +(2) If the person against whom an order is sought under +paragraph (1)(b) or (c) in relation to an inquiry is a cor- +poration and the judge to whom the application is made +under subsection (1) is satisfied by information on oath +or solemn affirmation that an affiliate of the corporation, +whether the affiliate is located in Canada or outside +Canada, has or is likely to have records or information +relevant to the inquiry, the judge may order the corpora- +tion to +(a) produce the records; or +(b) make and deliver a written return of the informa- +tion. +(2) Section 11 of the Act is amended by adding the +following after subsection (4): +Person outside Canada +(5) An order may be made under subsection (1) against a +person outside Canada who carries on business in +Canada or sells products into Canada. +257 (1) Subsections 45(2) and (3) of the Act are +replaced by the following: +Conspiracies, agreements or arrangements regarding +employment +(1.1) Every person who is an employer commits an of- +fence who, with another employer who is not affiliated +with that person, conspires, agrees or arranges +(a) to fix, maintain, decrease or control salaries, wages +or terms and conditions of employment; or +(b) to not solicit or hire each other’s employees. +Penalty +(2) Every person who commits an offence under subsec- +tion (1) or (1.1) is guilty of an indictable offence and li- +able on conviction to imprisonment for a term not ex- +ceeding 14 years or to a fine in the discretion of the court, +or to both. +Evidence of conspiracy, agreement or arrangement +(3) In a prosecution under subsection (1) or (1.1), the +court may infer the existence of a conspiracy, agreement +or arrangement from circumstantial evidence, with or +without direct evidence of communication between or +among the alleged parties to it, but, for greater certainty, +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 15 Competition Act +Amendments to the Act +Sections 256-257 + +Page 342 +the conspiracy, agreement or arrangement must be +proved beyond a reasonable doubt. +(2) The portion of subsection 45(4) of the Act be- +fore paragraph (a) is replaced by the following: +Defence +(4) No person shall be convicted of an offence under sub- +section (1) or (1.1) in respect of a conspiracy, agreement +or arrangement that would otherwise contravene that +subsection if +(3) Subsection 45(7) of the Act is replaced by the +following: +Common law principles — regulated conduct +(7) The rules and principles of the common law that ren- +der a requirement or authorization by or under another +Act of Parliament or the legislature of a province a de- +fence to a prosecution under subsection (1), as it read im- +mediately before the coming into force of this section, +continue in force and apply in respect of a prosecution +under subsection (1) or (1.1). +258 Section 52 of the Act is amended by adding +the following after subsection (1.2): +Drip pricing +(1.3) For greater certainty, the making of a representa- +tion of a price that is not attainable due to fixed obliga- +tory charges or fees constitutes a false or misleading rep- +resentation, unless the obligatory charges or fees repre- +sent only an amount imposed by or under an Act of Par- +liament or the legislature of a province. +259 Section 74.01 of the Act is amended by adding +the following after subsection (1): +Drip pricing +(1.1) For greater certainty, the making of a representa- +tion of a price that is not attainable due to fixed obliga- +tory charges or fees constitutes a false or misleading rep- +resentation, unless the obligatory charges or fees repre- +sent only an amount imposed by or under an Act of Par- +liament or the legislature of a province. +260 Subparagraphs 74.1(1)(c)(i) and (ii) of the +Act are replaced by the following: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 15 Competition Act +Amendments to the Act +Sections 257-260 + +Page 343 +(i) in the case of an individual, the greater of +(A) $750,000 and, for each subsequent or- +der, $1,000,000, and +(B) three times the value of the benefit derived +from the deceptive conduct, if that amount can +be reasonably determined, or +(ii) in the case of a corporation, the greater of +(A) $10,000,000 and, for each subsequent or- +der, $15,000,000, and +(B) three times the value of the benefit derived +from the deceptive conduct, or, if that amount +cannot be reasonably determined, 3% of the cor- +poration’s annual worldwide gross revenues; and +261 (1) The portion of subsection 78(1) of the Act +before paragraph (a) is replaced by the follow- +ing: +Definition of anti-competitive act +78 (1) For the purposes of section 79, anti-competitive +act means any act intended to have a predatory, exclu- +sionary or disciplinary negative effect on a competitor, or +to have an adverse effect on competition, and includes +any of the following acts: +(2) Subsection 78(1) of the Act is amended by +striking out “and” at the end of paragraph (h), by +adding “and” at the end of paragraph (i) and by +adding the following after paragraph (i): +(j) a selective or discriminatory response to an actual +or potential competitor for the purpose of impeding or +preventing the competitor’s entry into, or expansion +in, a market or eliminating the competitor from a mar- +ket. +262 (1) The portion of subsection 79(1) of the Act +before paragraph (a) is replaced by the follow- +ing: +Prohibition if abuse of dominant position +79 (1) If, on application by the Commissioner or a per- +son granted leave under section 103.1, the Tribunal finds +that +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 15 Competition Act +Amendments to the Act +Sections 260-262 + +Page 344 +(2) Subsection 79(3.1) of the Act is replaced by the +following: +Administrative monetary penalty +(3.1) If the Tribunal makes an order against a person un- +der subsection (1) or (2), it may also order them to pay, +in any manner that the Tribunal specifies, an administra- +tive monetary penalty in an amount not exceeding the +greater of +(a) $10,000,000 and, for each subsequent order under +either of those subsections, an amount not exceed- +ing $15,000,000, and +(b) three times the value of the benefit derived from +the anti-competitive practice, or, if that amount can- +not be reasonably determined, 3% of the person’s an- +nual worldwide gross revenues. +(3) Subsection 79(4) of the Act is replaced by the +following: +Factors to be considered +(4) In determining, for the purposes of subsection (1), +whether a practice has had, is having or is likely to have +the effect of preventing or lessening competition substan- +tially in a market, the Tribunal shall consider whether the +practice is a result of superior competitive performance +and may consider +(a) the effect of the practice on barriers to entry in the +market, including network effects; +(b) the effect of the practice on price or non-price +competition, including quality, choice or consumer +privacy; +(c) the nature and extent of change and innovation in +a relevant market; and +(d) any other factor that is relevant to competition in +the market that is or would be affected by the practice. +(4) Section 79 of the Act is amended by adding the +following after subsection (7): +Inferences +(8) In considering an application by a person granted +leave under section 103.1, the Tribunal may not draw any +inference from the fact that the Commissioner has or has +not taken any action in respect of the matter raised by +the application. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 15 Competition Act +Amendments to the Act +Section +262 + +Page 345 +263 Subsection 90.1(2) of the Act is amended by +striking out “and” after paragraph (g) and by +adding the following after that paragraph: +(g.1) network effects within the market; +(g.2) whether the agreement or arrangement would +contribute to the entrenchment of the market position +of leading incumbents; +(g.3) any effect of the agreement or arrangement on +price or non-price competition, including quality, +choice or consumer privacy; and +264 Section 93 of the Act is amended by striking +out “and” after paragraph (g) and by adding the +following after that paragraph: +(g.1) network effects within the market; +(g.2) whether the merger or proposed merger would +contribute to the entrenchment of the market position +of leading incumbents; +(g.3) any effect of the merger or proposed merger on +price or non-price competition, including quality, +choice or consumer privacy; and +265 Paragraph 100(1)(b) of the Act is replaced by +the following: +(b) the Tribunal finds, on application by the Commis- +sioner, that the completion of the proposed merger +would result in a contravention of section 114. +266 (1) Subsections 103.1(1) and (2) of the Act are +replaced by the following: +Leave to make application under section 75, 76, 77 or +79 +103.1 (1) Any person may apply to the Tribunal for +leave to make an application under section 75, 76, 77 or +79. The application for leave must be accompanied by an +affidavit setting out the facts in support of the person’s +application under that section. +Notice +(2) The applicant must serve a copy of the application for +leave on the Commissioner and any person against whom +the order under section 75, 76, 77 or 79, as the case may +be, is sought. +(2) Paragraph 103.1(3)(b) of the Act is replaced by +the following: +(b) was the subject of an inquiry that has been discon- +tinued +because +of +a +settlement +between +the +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 15 Competition Act +Amendments to the Act +Sections 263-266 + +Page 346 +Commissioner and the person against whom the order +under section 75, 76, 77 or 79, as the case may be, is +sought. +(3) Subsection 103.1(4) of the Act is replaced by +the following: +Application discontinued +(4) The Tribunal shall not consider an application for +leave respecting a matter described in paragraph (3)(a) +or (b) or a matter that is the subject of an application al- +ready submitted to the Tribunal by the Commissioner +under section 75, 76, 77 or 79. +(4) Subsection 103.1(7) of the Act is replaced by +the following: +Granting leave +(7) The Tribunal may grant leave to make an application +under section 75, 77 or 79 if it has reason to believe that +the applicant is directly and substantially affected in the +applicant’s business by any practice referred to in one of +those sections that could be subject to an order under +that section. +(5) Subsection 103.1(8) of the English version of +the Act is replaced by the following: +Time and conditions for making application +(8) The Tribunal may set the time within which and the +conditions subject to which an application under section +75, 76, 77 or 79 must be made. The application must be +made no more than one year after the practice or conduct +that is the subject of the application has ceased. +(6) Subsection 103.1(10) of the Act is replaced by +the following: +Limitation +(10) The Commissioner may not make an application for +an order under section 75, 76, 77 or 79 on the basis of the +same or substantially the same facts as are alleged in a +matter for which the Tribunal has granted leave under +subsection (7) or (7.1), if the person granted leave has al- +ready applied to the Tribunal under section 75, 76, 77 or +79. +267 Section 103.2 of the Act is replaced by the fol- +lowing: +Intervention by Commissioner +103.2 If a person granted leave under subsection +103.1(7) or (7.1) makes an application under section 75, +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 15 Competition Act +Amendments to the Act +Sections 266-267 + +Page 347 +76, 77 or 79, the Commissioner may intervene in the pro- +ceedings. +268 Subsection 104(1) of the Act is replaced by +the following: +Interim order +104 (1) If an application has been made for an order un- +der this Part, other than an interim order under section +100 or 103.3, the Tribunal, on application by the Commis- +sioner or a person who has made an application under +section 75, 76, 77 or 79, may issue any interim order that +it considers appropriate, having regard to the principles +ordinarily considered by superior courts when granting +interlocutory or injunctive relief. +269 Subsection 106.1(1) of the Act is replaced by +the following: +Consent agreement — parties to a private action +106.1 (1) If a person granted leave under section 103.1 +makes an application to the Tribunal for an order under +section 75, 76, 77 or 79 and the terms of the order are +agreed to by the person in respect of whom the order is +sought and consistent with the provisions of this Act, a +consent agreement may be filed with the Tribunal for +registration. +270 Section 108 of the Act is amended by adding +the following after subsection (2): +Computation of time +(3) In this Part, a time period is calculated in accordance +with sections 26 to 30 of the Interpretation Act except +that the following days are also considered to be a holi- +day as defined in subsection 35(1) of that Act: +(a) Saturday; +(b) if Christmas Day falls on a Saturday or Sunday, the +following Monday and Tuesday; and +(c) if another holiday falls on a Saturday or Sunday, +the following Monday. +Submission after 5:00 p.m. +(4) For the purposes of this Part, anything submitted to +the Commissioner after 5:00 p.m. (Eastern Time) is +deemed to be received by the Commissioner on the next +day that is not a holiday. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 15 Competition Act +Amendments to the Act +Sections 267-270 + +Page 348 +271 The Act is amended by adding the following +after section 113: +Anti-avoidance +Application of sections 114 to 123.1 +113.1 If a transaction or proposed transaction is de- +signed to avoid the application of this Part, sections 114 +to 123.1 apply to the substance of the transaction or pro- +posed transaction. +272 Subsection 114(3) of the Act is replaced by +the following: +Unsolicited bid +(3) If a proposed transaction is an unsolicited or hostile +take-over bid in respect of an entity and the Commission- +er receives prescribed information supplied under sub- +section (1) by a person who has commenced or has an- +nounced an intention to commence a take-over bid, the +Commissioner shall, if he or she has not already received +the prescribed information from the entity, immediately +notify the entity that the Commissioner has received the +prescribed information from that person and the entity +shall supply the Commissioner with the prescribed infor- +mation within 10 days after being so notified. +273 Paragraph 123(1)(a) of the English version of +the Act is replaced by the following: +(a) 30 days after the day on which the information re- +quired under subsection 114(1) has been received by +the Commissioner, if the Commissioner has not, with- +in that time, required additional information to be +supplied under subsection 114(2); or +274 Subsection 124.2(3) of the Act is replaced by +the following: +Reference by agreement of parties to a private action +(3) A person granted leave under section 103.1 and the +person against whom an order is sought under section 75, +76, 77 or 79 may by agreement refer to the Tribunal for +determination any question of law, or mixed law and fact, +in relation to the application or interpretation of Part +VIII, if the Tribunal grants them leave. They must send a +notice of their application for leave to the Commissioner, +who may intervene in the proceedings. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 15 Competition Act +Amendments to the Act +Sections 271-274 + +Page 349 +Coming into Force +First anniversary +275 Section 257 comes into force on the first an- +niversary of the day on which this Act receives +royal assent. +DIVISION 16 +R.S., c. C-42 +Copyright Act +Amendments to the Act +276 Section 6 of the Copyright Act is replaced by +the following: +Term of copyright +6 Except as otherwise expressly provided by this Act, the +term for which copyright subsists is the life of the author, +the remainder of the calendar year in which the author +dies, and a period of 70 years following the end of that +calendar year. +277 Subsection 6.2(2) of the Act is replaced by the +following: +Identity of author commonly known +(2) If, during any term referred to in subsection (1), the +identity of one or more of the authors becomes common- +ly known, copyright subsists for the life of whichever of +those authors dies last, the remainder of the calendar +year in which that author dies and a period of 70 years +following the end of that calendar year. +278 Section 7 of the Act is replaced by the follow- +ing: +Term of copyright in certain posthumous works +7 (1) Subject to subsection (2), in the case of a literary, +dramatic or musical work, or an engraving, in which +copyright subsists at the date of the death of the author +— or, in the case of a work of joint authorship, at or im- +mediately before the date of the death of the author who +dies last — but which has not been published or, in the +case of a lecture or a dramatic or musical work, been per- +formed in public or communicated to the public by +telecommunication, before that date, copyright subsists +for the longer of +(a) the period until publication, or performance in +public +or +communication +to +the +public +by +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 15 Competition Act +Coming into Force +Sections 275-278 + +Page 350 +telecommunication, whichever may first happen, as +well as the remainder of the calendar year of the publi- +cation or of the performance in public or communica- +tion to the public by telecommunication, as the case +may be, and for a period of 50 years following the end +of that calendar year, and +(b) the life of the author — or, in the case of a work of +joint authorship, the life of the author who dies last — +as well as the remainder of the calendar year in which +that author dies and a period of 70 years following the +end of the calendar year in which that author dies. +Application of subsection (1) +(2) Subsection (1) applies only if the work in question +was published or performed in public or communicated +to the public by telecommunication, as the case may be, +before December 31, 1998. +Transitional provision +(3) If a work was not published or performed in public or +communicated to the public by telecommunication be- +fore December 31, 1998, if subsection (1) would apply to +that work had it been published or performed in public +or communicated to the public by telecommunication be- +fore that day, and if the relevant death referred to in sub- +section (1) occurred during the period of 50 years imme- +diately before that day, copyright subsists in the work, +whether or not the work is published or performed in +public or communicated to the public by telecommunica- +tion on or after that day, +(a) until December 31, 2048; or +(b) for the life of the author — or, in the case of a work +of joint authorship, the life of the author who dies last +— as well as the remainder of the calendar year in +which that author dies and a period of 70 years follow- +ing the end of that calendar year, if that period ends +after December 31, 2048. +279 Section 9 of the Act is replaced by the follow- +ing: +Cases of joint authorship +9 In the case of a work of joint authorship, except as pro- +vided in section 6.2 or subsection 7(1) or (3), copyright +subsists during the life of the author who dies last, for the +remainder of the calendar year in which that author dies, +and for a period of 70 years following the end of that cal- +endar year, and references in this Act to the period after +the expiration of any specified number of years from the +end of the calendar year of the death of the author shall +be construed as references to the period after the +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 16 Copyright Act +Amendments to the Act +Sections 278-279 + +Page 351 +expiration of the like number of years from the end of the +calendar year of the death of the author who dies last. +Transitional Provision +No revival of copyright +280 Section 6, subsections 6.2(2) and 7(1) and (3) +and section 9 of the Copyright Act, as enacted by +sections 276 to 279, do not have the effect of reviv- +ing the copyright in any work in which the copy- +right had expired before the day on which sec- +tions 276 to 279 come into force. +Coming into Force +Order in council +281 This Division comes into force on a day to be +fixed by order of the Governor in Council. +DIVISION 17 +2018, c. 27, s. 247; 2014, c. 20, s. 366(1)(E) +College of Patent Agents and +Trademark Agents Act +282 Subsection 5(2) of the College of Patent +Agents and Trademark Agents Act is replaced by +the following: +Act not applicable to College +(2) Subject to any regulations made under paragraph +76(1)(a.1), the Canada Not-for-profit Corporations Act +does not apply to the College. +283 Section 8 of the Act is replaced by the follow- +ing: +Capacity +8 In carrying out its purpose, the College has the capaci- +ty and the rights, powers and privileges of a natural per- +son, including the power to +(a) purchase or otherwise acquire, or lease, any real or +personal property or immovable or movable; +(b) sell or otherwise dispose of, or lease, any of its ac- +quired or leased property; and +(c) borrow money. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 16 Copyright Act +Amendments to the Act +Sections 279-283 + +Page 352 +284 Section 15 of the Act is amended by adding +the following after subsection (4): +Vacancies during term +(5) If an elected director has ceased to hold office before +the expiry of their term, the Board may, in accordance +with the by-laws, appoint an individual to fill that vacan- +cy for the unexpired portion of that term or for any short- +er period that the Board fixes. +285 The Act is amended by adding the following +after section 20: +Power to act on College’s behalf +20.1 For the purposes of this Act, the Board may act on +the College’s behalf and may, by by-law, authorize the +College’s directors, the members of its committees, the +Registrar, the investigators and any officers or employees +of the College to act on behalf of the College. +286 Section 22 of the Act is renumbered as sub- +section 22(1) and is amended by adding the fol- +lowing: +Delegation +(2) Subject to the regulations, the Registrar may delegate +any of the powers, duties and functions conferred on the +Registrar under this Act. +287 The Act is amended by adding the following +after section 23: +Immunity +Responsibility for damages — directors and others +23.1 No action or other proceeding for damages lies or +may be instituted against any of the following persons for +anything done or omitted to be done in good faith in the +exercise or purported exercise of any power, or in the +performance or purported performance of any duty or +function, conferred on that person under the Act: +(a) a current or former director of the Board; +(b) a current or former member of a committee of the +College; +(c) the Registrar or a former Registrar; +(d) a current or former investigator; +(e) a current or former officer, employee, agent or +mandatary of the College; and +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 17 College of Patent Agents and Trademark Agents Act +Sections 284-287 + +Page 353 +(f) a person who is or has been engaged by the Col- +lege. +Right of indemnification +23.2 The College must indemnify the persons referred to +in section 23.1 against all costs, charges and expenses, in- +cluding an amount paid to settle an action or satisfy a +judgment, reasonably incurred by them in respect of any +civil, criminal, administrative or other proceeding in +which they are involved for anything done or omitted to +be done in good faith in the exercise or purported exer- +cise of any power, or in the performance or purported +performance of any duty or function, conferred on that +person under the Act. +Responsibility for damages — complainant or others +23.3 No action or other proceeding for damages lies or +may be instituted against a person for disclosing any in- +formation or document to the College or to an investiga- +tor in good faith, or for making a complaint about a li- +censee to the College in good faith. +288 The Act is amended by adding the following +after section 37: +Powers +37.1 (1) The Investigations Committee may take any of +the following actions in respect of a licensee who is under +investigation if it is satisfied that it is necessary for the +protection of the public: +(a) impose conditions on a licence of the licensee; +(b) impose restrictions on the licensee’s entitlement to +represent persons under section 27 or 30; +(c) suspend a licence of the licensee. +Notice +(2) The Investigations Committee must notify the li- +censee in writing of any action taken in respect of the li- +censee and must inform them of their right to make an +application for a review by the Discipline Committee at +any time. +Action is provisional +(3) Any action taken under subsection (1) is provisional +and ceases to have effect if +(a) the Discipline Committee makes a decision under +subsection 37.2(2) that amends or revokes the action; +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 17 College of Patent Agents and Trademark Agents Act +Sections 287-288 + +Page 354 +(b) the Investigations Committee dismisses the matter +under subsection 49(1); +(c) the Investigations Committee withdraws the appli- +cation under section 50; +(d) the Discipline Committee exercises its powers un- +der section 56; or +(e) the Discipline Committee renders a decision under +section 57. +Request for review +37.2 (1) A licensee who receives a notice under subsec- +tion 37.1(2) may, at any time, request a review of the de- +cision of the Investigations Committee made under sub- +section 37.1(1) by making an application to the Discipline +Committee. +Decision +(2) On completion of the review, the Discipline Commit- +tee may confirm, amend or revoke any action taken by +the Investigations Committee. If the Discipline Commit- +tee amends the actions, they cease to have effect in the +circumstances referred to in paragraphs 37.1(3)(b) to (e). +Notice +(3) The Discipline Committee must, in writing, notify the +licensee and the Investigations Committee of its decision +and the reasons for it. +289 Section 39 of the Act is replaced by the fol- +lowing: +Dismissal or referral +38.1 (1) The Registrar must consider all complaints re- +ceived by the College relating to professional misconduct +or incompetence by a licensee and may, subject to and in +accordance with the by-laws, dismiss any complaint, in +whole or in part, for any of the reasons set out in the reg- +ulations, but if they do not dismiss the complaint the +Registrar must refer it to the Investigations Committee +for consideration. +Notice of dismissal +(2) If the Registrar dismisses the complaint, the Regis- +trar must notify the complainant in writing of the deci- +sion and the reasons for the dismissal and the notice +must inform the complainant of their right to appeal the +decision to the Investigations Committee within 30 days +after the date of the notice. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 17 College of Patent Agents and Trademark Agents Act +Sections 288-289 + +Page 355 +Limitation +(3) The Registrar is not permitted to disclose privileged +information in their notice to the complainant. +Appeal +(4) The complainant who receives a notice under subsec- +tion (2) may, within 30 days after the date of the notice, +request an appeal of the Registrar’s decision to the Inves- +tigations Committee. +Decision +(5) The Investigations Committee must dispose of the +appeal by dismissing it or allowing it and, if they allow it, +they must consider the complaint. +Role of Investigations Committee +39 The Investigations Committee must consider all com- +plaints that are referred to it by the Registrar and make a +determination in respect of all appeals requested under +subsection 38.1(4). +290 Section 63 of the Act is replaced by the fol- +lowing: +Practice and Procedure +Rules +63 The Investigations Committee and the Discipline +Committee may make rules respecting the practice and +procedure before them and rules for carrying out their +work and for the management of their internal affairs. +291 (1) Paragraph 75(1)(c) of the Act is replaced +by the following: +(c) respecting the filling of vacancies among elected +directors; +(2) Subsection 75(1) of the Act is amended by +adding the following after paragraph (f): +(f.1) respecting the creation of committees; +(3) Subsection 75(1) of the Act is amended by +adding the following after paragraph (i): +(i.1) defining the terms “professional misconduct” +and “incompetence” for the purposes of this Act; +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 17 College of Patent Agents and Trademark Agents Act +Sections 289-291 + +Page 356 +(4) Subsection 75(1) of the Act is amended by +striking out “and” at the end of paragraph (t) and +by adding the following after that paragraph: +(t.1) prescribing the circumstances in which the Reg- +istrar must not dismiss a complaint or the reasons for +which the Registrar must not dismiss a complaint; +(t.2) respecting the form and manner in which the +Registrar may dismiss a complaint; and +(5) Subsections 75(2) and (3) of the Act are re- +placed by the following: +Different treatment +(2) The by-laws made under paragraphs (1)(j) to (t) and +(u) may distinguish among classes of licensees or li- +cences. +For greater certainty +(3) For greater certainty, by-laws made under para- +graphs (1)(i.1) to (u) are regulations for the purposes of +the Statutory Instruments Act. +292 (1) Subsection 76(1) of the Act is amended by +adding the following after paragraph (a): +(a.1) respecting the application of any provisions of +the Canada Not-for-profit Corporations Act to the +College; +(a.2) limiting the powers, duties and functions that +may be delegated by the Registrar and the persons to +whom they may be delegated; +(2) Subsection 76(1) of the Act is amended by +adding the following after paragraph (g): +(g.1) prescribing the reasons for which the Registrar +may dismiss a complaint; +(3) Subsection 76(2) of the Act is replaced by the +following: +Authorization +(2) Regulations made under paragraph (1)(a.2) may au- +thorize the Board or any committee of the College, and +those made under paragraphs (1)(c), (d), (f) and (g) may +authorize the Board, the Registrar or any committee of +the College, to make by-laws with respect to all or part of +the subject matter of the regulations and, for greater cer- +tainty, those by-laws are regulations for the purposes of +the Statutory Instruments Act. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 17 College of Patent Agents and Trademark Agents Act +Sections 291-292 + +Page 357 +293 The Act is amended by adding the following +after section 86: +By-laws +87 All by-laws that are made by the College before the +coming into force of this section are deemed to have been +made by the Board. +Deemed authority +88 All regulations authorizing the College to make by- +laws under subsection 76(2), as it read immediately be- +fore the coming into force of this section, are deemed to +authorize the Board to make the by-laws. +DIVISION 18 +Civil Lunar Gateway Agreement +Implementation Act +Enactment of Act +Enactment +294 The Civil Lunar Gateway Agreement Imple- +mentation Act is enacted as follows: +An Act to implement the Memorandum of Under- +standing between the Government of Canada and the +Government of the United States of America con- +cerning Cooperation on the Civil Lunar Gateway and +to make related amendments to other Acts +Short Title +Short title +1 This Act may be cited as the Civil Lunar Gateway +Agreement Implementation Act. +Interpretation +Definitions +2 The following definitions apply in this Act. +Agreement means the Memorandum of Understanding +between the Government of Canada and the Government +of the United States of America concerning Cooperation +on the Civil Lunar Gateway, entered into on December +15, 2020, as amended from time to time under article 22 +of the Agreement. (Accord) +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 17 College of Patent Agents and Trademark Agents Act +Sections 293-294 + +Page 358 +Minister, in respect of any provision of this Act, means +the member or members of the Queen’s Privy Council for +Canada designated as the Minister or Ministers for the +purpose of that provision. (ministre) +General +Purpose +3 The purpose of this Act is to fulfil Canada’s obligations +under the Agreement. +Binding on Her Majesty +4 This Act is binding on Her Majesty in right of Canada +or a province. +Order designating Minister +5 The Governor in Council may, by order, designate one +or more members of the Queen’s Privy Council for +Canada as the Minister or Ministers for the purpose of +any provision of this Act. +Delegation of powers +6 The Minister may delegate any powers, duties and +functions conferred on the Minister by or under this Act +to one or more persons who are to exercise those powers +and perform those duties and functions, subject to any +terms and conditions that the Minister specifies. +Information +Power to order production +7 (1) The Minister may, by order, require any person +that the Minister believes, on reasonable grounds, has in- +formation or documents relevant to the administration +or enforcement of this Act, to provide that information or +those documents to the Minister or any person that the +Minister designates. +Order +(2) Every person to whom an order under subsection (1) +is directed must provide the information or documents +that are required by the order in the time and manner +specified in it. +Non-application of Statutory Instruments Act +(3) The Statutory Instruments Act does not apply to an +order issued under subsection (1). +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 18 Civil Lunar Gateway Agreement Implementation Act +Enactment of Act +Section +294 + +Page 359 +Prohibition +8 (1) It is prohibited for a person who obtained informa- +tion or a document under this Act or the Agreement that +is subject to a claim that it is confidential to communi- +cate it, allow its recommunication or allow any person to +have access to it without the written consent of the per- +son who provided it. +Exceptions +(2) Despite subsection (1), a person may communicate or +allow any person to have access to information or a docu- +ment that has been provided under this Act or the Agree- +ment and that is subject to a claim that it is confidential if +(a) the public interest in the communication or access +in relation to public health or public safety outweighs +in importance any financial loss or prejudice to the +competitive position of any person or any harm to the +privacy interests, reputation or human dignity of any +individual likely to be caused by that communication +or access; or +(b) the communication or access is necessary for the +purpose of the administration or enforcement of this +Act or any other Act of Parliament or of giving effect to +the Agreement. +Compelled production +(3) Despite any other Act or law, a person is not to be +compelled to give or produce evidence relating to infor- +mation or a document that has been provided under this +Act or the Agreement and that is subject to a claim that it +is confidential, unless the proceeding in which the evi- +dence is sought to be compelled relates to the enforce- +ment of this Act or another Act of Parliament. +Goods and data +9 Despite any other Act or law, any person who receives +goods or data referred to in Article 19.4 of the Agreement +must, upon completion of the activities to which they re- +late, destroy or return them in accordance with the in- +structions of the party that provided them. +Compliance order +10 (1) If the Minister believes on reasonable grounds +that a person who has received information or docu- +ments under the Agreement is contravening, or is likely +to contravene, section 8 or 9, the Minister may, by order, +require the person to return the information or the docu- +ments in question to the person who provided them or to +dispose of them in the manner the Minister deems ap- +propriate in the circumstances. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 18 Civil Lunar Gateway Agreement Implementation Act +Enactment of Act +Section +294 + +Page 360 +Order +(2) Every person to whom an order under subsection (1) +is directed must return the information or documents, or +dispose of them, in the time and manner specified in the +order. +Non-application of Statutory Instruments Act +(3) The Statutory Instruments Act does not apply to an +order issued under subsection (1). +Interpretation +11 For the purposes of sections 7, 8 and 10, information +and documents are deemed to include goods or data re- +ferred to in Article 19.4 of the Agreement. +Regulations +Regulations +12 The Governor in Council may make regulations that +the Governor in Council considers necessary for carrying +out the purposes of this Act or giving effect to the Agree- +ment, including the code of conduct, memorandums of +understanding and other implementing arrangements +that the Agreement refers to. +Related Amendments +R.S., c. C-46 +Criminal Code +295 Paragraph 2.3(1)(a) of the Criminal Code is +replaced by the following: +(a) proceedings in relation to an offence under sub- +section 7(2.01), (2.3), (2.31), (2.35) or (2.36) or section +57, 58, 83.12, 103, 104, 121.1, 380, 382, 382.1, 391, 400, +424.1, 431.1, 467.11 or 467.111 or in relation to any ter- +rorism offence; +296 (1) Subsections 7(2.3) and (2.31) of the French +version of the Act are replaced by the following: +Station spatiale : membres d’équipage canadiens +(2.3) Malgré les autres dispositions de la présente loi ou +de toute autre loi, le membre d’équipage canadien qui est +l’auteur, hors du Canada et au cours d’un vol spatial soit +à bord d’un élément de vol de la station spatiale ou relati- +vement à tel élément, soit à bord d’un moyen de trans- +port effectuant la navette avec la station, d’un fait — acte +ou omission — qui, s’il était commis au Canada, consti- +tuerait un acte criminel, est réputé avoir commis ce fait +au Canada. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 18 Civil Lunar Gateway Agreement Implementation Act +Enactment of Act +Sections 294-296 + +Page 361 +Station spatiale : membres d’équipage d’un État +partenaire +(2.31) Malgré les autres dispositions de la présente loi +ou de toute autre loi, le membre d’équipage d’un État +partenaire qui est l’auteur, hors du Canada et au cours +d’un vol spatial soit à bord d’un élément de vol de la sta- +tion spatiale ou relativement à tel élément, soit à bord +d’un moyen de transport spatial effectuant la navette +avec la station, d’un fait — acte ou omission — qui, s’il +était commis au Canada, constituerait un acte criminel, +est réputé avoir commis ce fait au Canada dans les cas +suivants : +a) le fait porte atteinte à la vie ou à la sécurité d’un +membre d’équipage canadien; +b) le fait est commis à bord d’un élément de vol fourni +par le Canada, ou relativement à tel élément, ou l’en- +dommage. +(2) Paragraph (b) of the definition crew member +of a Partner State in subsection 7(2.34) of the Act is +replaced by the following: +(b) a citizen of a state, other than Canada or a Partner +State, who is authorized by a Partner State to act as a +crew member for a space flight on, or in relation to, a +flight element. (membre d’équipage d’un État par- +tenaire) +(3) The definition Space Station in subsection +7(2.34) of the Act is replaced by the following: +Space Station means the civil international Space Sta- +tion that is a multi-use facility in low-earth orbit, with +flight elements and dedicated ground elements provided +by, or on behalf of, Canada or the Partner States. (station +spatiale) +(4) Section 7 of the Act is amended by adding the +following after subsection (2.34): +Lunar Gateway — Canadian crew members +(2.35) Despite anything in this Act or any other Act, a +Canadian crew member who, during a space flight, com- +mits an act or omission outside Canada that if committed +in Canada would constitute an indictable offence is +deemed to have committed that act or omission in +Canada, if that act or omission is committed +(a) on, or in relation to, a flight element of the Lunar +Gateway; +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 18 Civil Lunar Gateway Agreement Implementation Act +Related Amendments +Section +296 + +Page 362 +(b) on any means of transportation to or from the Lu- +nar Gateway; or +(c) on the surface of the Moon. +Lunar Gateway — crew members of Partner States +(2.36) Despite anything in this Act or any other Act, a +crew member of a Partner State who commits an act or +omission outside Canada during a space flight on, or in +relation to, a flight element of the Lunar Gateway, on any +means of transportation to and from the Lunar Gateway +or on the surface of the Moon that if committed in +Canada would constitute an indictable offence is deemed +to have committed that act or omission in Canada, if that +act or omission +(a) threatens the life or security of a Canadian crew +member; or +(b) is committed on or in relation to, or damages, a +flight element provided by Canada. +Consent of Attorney General of Canada +(2.37) No proceedings in relation to an offence referred +to in subsection (2.35) or (2.36) may be instituted without +the consent of the Attorney General of Canada. +Definitions +(2.38) The definitions in this subsection apply in this +subsection and in subsections (2.35) and (2.36). +Agreement has the same meaning as in section 2 of the +Civil Lunar Gateway Agreement Implementation Act. +(Accord) +Canadian crew member means a crew member of the +Lunar Gateway who is +(a) a Canadian citizen; or +(b) a citizen of a foreign state, other than a Partner +State, who is authorized by Canada to act as a crew +member for a space flight on, or in relation to, a flight +element. (membre d’équipage canadien) +crew member of a Partner State means a crew mem- +ber of the Lunar Gateway who is +(a) a citizen of a Partner State; or +(b) a citizen of a state, other than Canada or a Partner +State, who is authorized by a Partner State to act as a +crew member for a space flight on, or in relation to, a +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 18 Civil Lunar Gateway Agreement Implementation Act +Related Amendments +Section +296 + +Page 363 +flight element. (membre d’équipage d’un État par- +tenaire) +flight element means a Lunar Gateway element provid- +ed by Canada or by a Partner State under the Agreement +and under any memorandum of understanding or imple- +menting arrangement entered into to carry out the +Agreement. (élément de vol) +Lunar Gateway means the civil Lunar Gateway that is a +multi-use facility in orbit around the Moon, with flight el- +ements and dedicated ground elements provided by, or +on behalf of, Canada or the Partner States. (station lu- +naire Gateway) +Partner State means a State, other than Canada, that is +a Gateway Partner as defined in Article 3.1 of the Agree- +ment. (État partenaire) +space flight means a flight that spans the period begin- +ning with the launching of a crew member of the Lunar +Gateway, continuing during their stay in orbit around or +on the surface of the Moon and ending with their landing +on earth. (vol spatial) +R.S., c. G-5 +Government Employees Compensation Act +297 Subsection 9.1(3) of the Government Em- +ployees Compensation Act is replaced by the fol- +lowing: +Subrogation +(3) If the employee or their dependants elect to claim +compensation under this Act, the employer shall be sub- +rogated to the rights of the employee or their dependants +and may, subject to the Agreements implemented by the +Civil International Space Station Agreement Implemen- +tation Act and the Civil Lunar Gateway Agreement Im- +plementation Act, maintain an action, against the third +party, in its own name or in the name of the employee or +their dependants. +Coming into Force +Order in council +298 This Division comes into force on a day to be +fixed by order of the Governor in Council. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 18 Civil Lunar Gateway Agreement Implementation Act +Related Amendments +Sections 296-298 + +Page 364 +DIVISION 19 +1992, c. 20 +Corrections and Conditional Release +Act +Amendments to the Act +299 Section 51 of the Corrections and Condition- +al Release Act is replaced by the following: +Detention in dry cell +51 (1) If the institutional head is satisfied that there are +reasonable grounds to believe that an inmate has ingest- +ed contraband or is carrying contraband in their rectum, +the institutional head may authorize in writing the deten- +tion of the inmate in a cell without plumbing fixtures on +the expectation that the contraband will be expelled. +Visits by registered health care professional +(2) An inmate detained under subsection (1) must be vis- +ited at least once every day by a registered health care +professional. +Use of X-ray +(3) If the institutional head is satisfied that there are rea- +sonable grounds to believe that an inmate has ingested +contraband or is carrying contraband in a body cavity, +the institutional head may authorize in writing the use of +an X-ray machine by a qualified X-ray technician to find +the contraband, if the consent of the inmate and of a +qualified medical practitioner is obtained. +300 Subsection 65(1) of the Act is replaced by the +following: +Power to seize +65 (1) A staff member may seize contraband, or evi- +dence relating to a disciplinary or criminal offence, found +in the course of a search conducted under sections 47 to +64, except a body cavity search or a search described in +subsection 51(3). +Coordinating Amendments +2019, c. 27 +301 (1) In this section, other Act means An Act to +amend the Corrections and Conditional Release +Act and another Act, chapter 27 of the Statutes of +Canada, 2019. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 19 Corrections and Conditional Release Act +Sections 299-301 + +Page 365 +(2) On the first day on which both section 16 of +the other Act and section 299 of this Act are in +force, section 51 of the Corrections and Condi- +tional Release Act is replaced by the following: +Detention in dry cell +51 (1) If the institutional head is satisfied that there are +reasonable grounds to believe that an inmate has ingest- +ed contraband or is carrying contraband in their rectum, +the institutional head may authorize in writing the deten- +tion of the inmate in a cell without plumbing fixtures, on +the expectation that the contraband will be expelled. +Visits by registered health care professional +(2) The inmate must be visited at least once every day by +a registered health care professional. +(3) If section 22 of the other Act comes into force +before section 300 of this Act, then that section +300 is deemed never to have come into force and +is repealed. +(4) If section 22 of the other Act comes into force +on the same day as section 300 of this Act, then +that section 300 is deemed to have come into +force before that section 22. +DIVISION 20 +R.S., c. 1 (2nd Supp.) +Customs Act +Amendments to the Act +302 (1) The definition réglementaire in subsection +2(1) of the French version of the Customs Act is +replaced by the following: +réglementaire Prévu par règlement ou déterminé en +conformité avec les règles prévues par règlement. +(French version only) +(2) Paragraph (c) of the definition prescribed in +subsection 2(1) of the English version of the Act is +replaced by the following: +(c) in any other case, prescribed by regulation or de- +termined in accordance with rules prescribed by regu- +lation; +and for the purposes of paragraphs (a) and (b), form is +not limited to a single record or document with blank +spaces to be filled out; (Version anglaise seulement) +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 19 Corrections and Conditional Release Act +Coordinating Amendments +Sections 301-302 + +Page 366 +303 Section 3.5 of the Act and the heading before +it are replaced by the following: +Payments +Payments +3.5 Except in the circumstances that the Minister may +specify, every person who makes a payment under this +Act shall make the payment to the account of the Receiv- +er General in the prescribed manner, within the pre- +scribed time and at the prescribed place. +304 Section 8.1 of the Act and the heading before +it are replaced by the following: +Electronic Administration and +Enforcement +Electronic administration and enforcement +8.1 (1) This Act may be administered and enforced us- +ing electronic means. Any person on whom powers, du- +ties or functions are conferred under this Act may exer- +cise any of those powers or perform any of those duties +or functions using the electronic means made available +or specified by the Minister. +Authorization +(2) Any person who has been authorized to exercise any +power or perform any duty or function conferred on a +person referred to in subsection (1) under this Act may +do so using the electronic means that are made available +or specified by the Minister. +Provision of information +8.2 For the purposes of sections 8.3 to 8.6, providing in- +formation includes providing a signature and serving, fil- +ing or otherwise providing a record or document. +Conditions for electronic version +8.3 A requirement under this Act to provide information +or security — in any form or manner or by any means — +is satisfied by providing the electronic version of the in- +formation or security if +(a) the electronic version is provided by the electronic +means, including an electronic system, that are made +available or specified by the Minister, if any; and +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 20 Customs Act +Amendments to the Act +Sections 303-304 + +Page 367 +(b) any prescribed requirements with respect to elec- +tronic communications or electronic means have been +met. +Deemed timing of receipt +8.4 Any information or security provided by electronic +means, including an electronic system, in accordance +with section 8.1 or 8.3, is deemed to be received +(a) if the regulations provide for a day, on that day; +(b) if the regulations provide for a day and time, on +that day and at that time; or +(c) if the regulations do not provide for a day or a day +and a time, on the day and at the time that the infor- +mation or security is sent. +For greater certainty +8.5 For greater certainty, by virtue of section 12 of the +Customs Tariff, sections 8.1 to 8.4 apply, with any modi- +fications that the circumstances require, to the adminis- +tration and enforcement of that Act and regulations +made under it. +Regulations +8.6 (1) The Governor in Council may, on the recommen- +dation of the Minister, make regulations in respect of +electronic communications and electronic means, includ- +ing electronic systems, or any other technology to be +used in the administration or enforcement of this Act or +the Customs Tariff, including regulations respecting +(a) the provision of information or security for any +purpose under this Act or the Customs Tariff in elec- +tronic or other form; +(b) the payment of amounts under this Act or the Cus- +toms Tariff by electronic instructions; and +(c) the manner in which and the extent to which any +provision of this Act, the Customs Tariff or their regu- +lations applies to the electronic communications or +electronic means, including electronic systems, and +adapting any such provision for the purpose of apply- +ing it. +Classes +(2) Regulations made for the purpose of section 8.3 may +establish classes and distinguish among those classes. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 20 Customs Act +Amendments to the Act +Section +304 + +Page 368 +305 Subsection 12(6) of the English version of the +Act is replaced by the following: +Written report +(6) If goods are required by the regulations to be report- +ed under subsection (1) in writing, they shall be reported +in the prescribed form with the prescribed information or +in such form and with such information as is satisfactory +to the Minister. +306 (1) Subsection 12.1(3) of the French version +of the Act is replaced by the following: +Code de transporteur — exigences +(3) La demande de code de transporteur est présentée en +la forme et avec les renseignements déterminés par le mi- +nistre. +(2) Subsection 12.1(4) of the Act is replaced by the +following: +Carrier code — issuance +(4) The Minister shall issue a carrier code to a person +who applies for it if the application meets the require- +ments referred to in subsection (3) and the Minister is +satisfied that the requirements and conditions prescribed +under paragraph (8)(e) for the carrier code to be issued +have been met. +307 Subsection 17(3) of the Act is replaced by the +following: +Liability +(3) Whenever the importer of the goods that have been +released or any person authorized under paragraph +32(6)(a) or subsection 32(7) to account for goods be- +comes liable under this Act to pay duties on those goods, +the owner of the goods at the time of release and the im- +porter of record become jointly and severally, or solidari- +ly, liable, with the importer or person authorized, to pay +the duties. +Definition of importer of record +(4) In this section, importer of record means the person +identified as the importer when goods are accounted for +under subsection 32(1), (2), (3) or (5). +308 The portion of subsection 19(2) of the French +version of the Act before paragraph (a) is re- +placed by the following: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 20 Customs Act +Amendments to the Act +Sections 305-308 + +Page 369 +Destination des marchandises documentées +(2) Sous réserve de l’article 20, si les marchandises décla- +rées conformément à l’article 12 ont été mentionnées sur +un formulaire déterminé par le ministre, à un bureau de +douane doté des attributions prévues à cet effet, toute +personne qui y est autorisée par l’agent ou selon les mo- +dalités réglementaires peut : +309 Subsection 19.1(2) of the Act is replaced by +the following: +Prescribed form +(2) The statistical code referred to in subsection (1) shall +be furnished in the prescribed form and manner of filing +with the prescribed information. +310 (1) Paragraph 32(1)(a) of the English version +of the Act is replaced by the following: +(a) they have been accounted for by the importer or +owner of the goods in the prescribed manner and, if +they are to be accounted for in writing, in the pre- +scribed form with the prescribed information; and +(2) Paragraph 32(2)(a) of the Act is replaced by +the following: +(a) the importer or owner of the goods makes an in- +terim accounting in the prescribed manner and in the +prescribed form with the prescribed information or in +the form and with the information that is satisfactory +to the Minister; or +311 Subsection 32.1(2) of the Act is replaced by +the following: +Prescribed form +(2) The statistical code referred to in subsection (1) shall +be furnished in the prescribed form and manner of filing +with the prescribed information. +312 (1) Paragraph 32.2(1)(a) of the Act is replaced +by the following: +(a) make a correction to the declaration of origin in +the prescribed manner and in the prescribed form +with the prescribed information; and +(2) Paragraph 32.2(2)(a) of the French version of +the Act is replaced by the following: +a) de corriger la déclaration selon les modalités régle- +mentaires et en la forme et avec les renseignements +déterminés par le ministre; +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 20 Customs Act +Amendments to the Act +Sections 308-312 + +Page 370 +313 Paragraph 32.3(b) of the Act is replaced by +the following: +(b) account for the goods in the prescribed manner +and in the prescribed form with the prescribed infor- +mation; and +314 The portion of subsection 35.02(2) of the En- +glish version of the Act before paragraph (a) is +replaced by the following: +Notice requiring marking or compliance +(2) The Minister or any officer designated by the Presi- +dent for the purposes of this section may, by notice +served personally or by registered or certified mail, re- +quire any person +315 (1) Subsection 35.1(1) of the English version +of the Act is replaced by the following: +Proof of origin +35.1 (1) Subject to any regulations made under subsec- +tion (4), proof of origin, in the prescribed form with the +prescribed information and with the information, state- +ments or proof required by any regulations made under +subsection (4), shall be furnished in respect of all goods +that are imported. +(2) Subsection 35.1(3.1) of the English version of +the Act is replaced by the following: +Certificate of origin completed by importer +(3.1) If an importer of goods for which preferential tariff +treatment under the CPTPP or CUSMA will be claimed is +the person who certifies that the goods meet the rules of +origin set out in, or contemplated by, the CPTPP or +CUSMA, the importer shall do so in writing, in the pre- +scribed form with the prescribed information, and on the +basis of supporting documents that the importer has or +supporting documents that are provided by the exporter +or producer. +(3) Paragraph 35.1(4)(b) of the Act is replaced by +the following: +(b) specifying, for the purpose of subsection (1), the +information, statements or proof required in addition +to the prescribed information; and +316 The portion of subsection 43.1(1) of the Act +before paragraph (a) is replaced by the follow- +ing: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 20 Customs Act +Amendments to the Act +Sections 313-316 + +Page 371 +Advance rulings +43.1 (1) Any officer, or any officer within a class of offi- +cers, designated by the President for the purposes of this +section shall, before goods are imported, on application +by any member of a prescribed class that is made within +the prescribed time, in the prescribed form and manner +of filing with the prescribed information, give an advance +ruling with respect to +317 Subsection 58(2) of the French version of the +Act is replaced by the following: +Détermination présumée +(2) Pour l’application de la présente loi, l’origine, le clas- +sement tarifaire et la valeur en douane des marchandises +importées qui n’ont pas été déterminés conformément au +paragraphe (1) sont considérés comme ayant été déter- +minés selon les énonciations portées par l’auteur de la +déclaration en détail en la forme prévue sous le régime de +l’alinéa 32(1)a). Cette détermination est réputée avoir été +faite au moment de la déclaration en détail faite en vertu +des paragraphes 32(1), (3) ou (5). +318 Subsection 60(3) of the Act is replaced by the +following: +How request to be made +(3) A request under this section must be made to the +President in the prescribed form and manner of filing +with the prescribed information. +319 Subsection 60.1(3) of the Act is replaced by +the following: +How application made +(3) The application must be made to the President in the +prescribed form and manner of filing with the prescribed +information. +320 The portion of paragraph 74(3)(b) of the Act +before subparagraph (i) is replaced by the fol- +lowing: +(b) an application for the refund, including such evi- +dence in support of the application as may be pre- +scribed, is made to an officer in the prescribed manner +and in the prescribed form with the prescribed infor- +mation within +321 Subsection 95(4) of the Act is replaced by the +following: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 20 Customs Act +Amendments to the Act +Sections 316-321 + +Page 372 +Written report +(4) If goods are required to be reported in writing, they +shall be reported in the prescribed form with the pre- +scribed information or in such form and with such infor- +mation as is satisfactory to the Minister. +322 Subsection 95.1(2) of the Act is replaced by +the following: +Prescribed form +(2) The statistical code referred to in subsection (1) shall +be furnished in the prescribed form and manner of filing +with the prescribed information. +323 (1) Subsection 97.1(1) of the English version +of the Act is replaced by the following: +Certificate of Origin of goods exported to free trade +partner +97.1 (1) Every exporter of goods to a free trade partner +for which preferential tariff treatment under a free trade +agreement will be claimed in accordance with the laws of +that free trade partner shall certify in writing, in the pre- +scribed manner and in the prescribed form with the pre- +scribed information, that goods exported or to be export- +ed from Canada to that free trade partner meet the rules +of origin set out in, or contemplated by, the applicable +free trade agreement and, if the exporter is not the pro- +ducer of the goods, the certificate shall be completed and +signed by the exporter on the basis of the prescribed cri- +teria. +(2) The portion of subsection 97.1(1.1) of the En- +glish version of the Act before paragraph (a) is +replaced by the following: +Certificate of Origin — CPTPP or CUSMA +(1.1) If an exporter or producer of goods that are export- +ed to a CPTPP country or CUSMA country and for which +preferential tariff treatment under the CPTPP or CUSMA +will be claimed in accordance with the laws of that coun- +try is the person who certifies that the goods meet the +rules of origin set out in, or contemplated by, the CPTPP +or CUSMA, the exporter or producer shall do so in writ- +ing, in the prescribed form with the prescribed informa- +tion, and +324 Paragraph 97.211(1)(a) of the Act is replaced +by the following: +(a) the powers provided for in paragraphs (a) and (b) +of the definition prescribed in subsection 2(1) as well +as those provided for in subsections 3.3(1) and (2), +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 20 Customs Act +Amendments to the Act +Sections 321-324 + +Page 373 +sections 8.1 and 8.3 and subsections 43(1) and 115(1); +and +325 Paragraph 97.34(4)(a) of the Act is replaced +by the following: +(a) the decision of the Canadian International Trade +Tribunal or Federal Court in that action has been re- +ceived by the Minister of Public Safety and Emergency +Preparedness; +326 Subsection 97.47(3) of the French version of +the Act is replaced by the following: +Garantie pour opposition ou appel +(3) Dans le cas où une personne fait opposition à une co- +tisation ou en interjette appel en vertu de la présente par- +tie, le ministre accepte la garantie, dont il juge satisfai- +sants le montant et la forme, qui lui est donnée par cette +personne ou en son nom pour le paiement d’une somme +en litige. +327 (1) Subsection 97.48(1) of the English version +of the Act is replaced by the following: +Objection to assessment +97.48 (1) Any person who has been assessed under sec- +tion 97.44 and who objects to the assessment may, within +90 days after the day the notice of the assessment is sent +to the person, file with the Minister a notice of objection +in the prescribed form and manner of filing setting out +the reasons for the objection and all relevant facts. +(2) Subsection 97.48(7) of the French version of +the Act is replaced by the following: +Acceptation de l’opposition +(7) Le ministre peut accepter l’avis d’opposition qui n’a +pas été produit selon les modalités qu’il a déterminées. +(3) Subsection 97.48(10) of the Act is replaced by +the following: +Notice of decision +(10) After reconsidering or confirming an assessment, +the Minister must send to the person objecting a written +notice of the Minister’s decision by registered or certified +mail. +328 Section 150 of the Act is replaced by the fol- +lowing: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 20 Customs Act +Amendments to the Act +Sections 324-328 + +Page 374 +Copies of documents +150 Copies of documents, including electronic docu- +ments, made under this or any other Act of Parliament +prohibiting, controlling or regulating the importation or +exportation of goods, that are duly certified by an officer +are admissible in evidence in any proceeding taken under +this Act in the same manner as if they were the originals +of such documents. +329 Section 164 of the Act is amended by adding +the following after subsection (2): +Regulations under paragraph (1)(i) — section 3.5 +(3) The regulations made under paragraph (1)(i) for the +purposes of section 3.5 may distinguish among sums ac- +cording to their amount and the class of goods to which +those sums relate. +330 (1) Paragraphs 166(1)(a) and (b) of the Act +are replaced by the following: +(a) prescribing the amount or authorizing the Minis- +ter to determine the amount of any deposit, bond or +other security required to be given under this Act or +the regulations; and +(b) prescribing the nature and the terms and condi- +tions of any such deposit, bond or other security. +(2) Subsection 166(2) of the Act is replaced by the +following: +Forms +(2) Any deposit, bond or other security required under +this Act shall be in a form satisfactory to the Minister. +Coming into Force +Order in council +331 Sections 302 to 330 come into force on a day +or days to be fixed by order of the Governor in +Council. +DIVISION 21 +R.S., c. C-46 +Criminal Code +332 (1) Section 319 of the Criminal Code is +amended by adding the following after subsec- +tion (2): +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 20 Customs Act +Amendments to the Act +Sections 328-332 + +Page 375 +Wilful promotion of antisemitism +(2.1) Everyone who, by communicating statements, oth- +er than in private conversation, wilfully promotes anti- +semitism by condoning, denying or downplaying the +Holocaust +(a) is guilty of an indictable offence and liable to im- +prisonment for a term not exceeding two years; or +(b) is guilty of an offence punishable on summary +conviction. +(2) Subsections 319(4) to (6) of the Act are re- +placed by the following: +Defences — subsection (2.1) +(3.1) No person shall be convicted of an offence under +subsection (2.1) +(a) if they establish that the statements communicat- +ed were true; +(b) if, in good faith, they expressed or attempted to es- +tablish by an argument an opinion on a religious sub- +ject or an opinion based on a belief in a religious text; +(c) if the statements were relevant to any subject of +public interest, the discussion of which was for the +public benefit, and if on reasonable grounds they be- +lieved them to be true; or +(d) if, in good faith, they intended to point out, for the +purpose of removal, matters producing or tending to +produce feelings of antisemitism toward Jews. +Forfeiture +(4) If a person is convicted of an offence under subsec- +tion (1), (2) or (2.1) or section 318, anything by means of +or in relation to which the offence was committed, on +such conviction, may, in addition to any other punish- +ment imposed, be ordered by the presiding provincial +court judge or judge to be forfeited to Her Majesty in +right of the province in which that person is convicted, +for disposal as the Attorney General may direct. +Exemption from seizure of communication facilities +(5) Subsections 199(6) and (7) apply, with any modifica- +tions that the circumstances require, to subsection (1), +(2) or (2.1) or section 318. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 21 Criminal Code +Section +332 + +Page 376 +Consent +(6) No proceeding for an offence under subsection (2) or +(2.1) shall be instituted without the consent of the Attor- +ney General. +(3) Subsection 319(7) of the Act is amended by +adding the following in alphabetical order: +Holocaust means the planned and deliberate state- +sponsored persecution and annihilation of European +Jewry by the Nazis and their collaborators from 1933 to +1945; (Holocauste) +DIVISION 22 +Judges and Prothonotaries +R.S., c. J-1 +Judges Act +333 (1) The definitions age of retirement and sur- +vivor in section 2 of the Judges Act are replaced +by the following: +age of retirement of a judge or of a prothonotary means +the age, fixed by law, at which the judge or prothonotary +ceases to hold office; (mise à la retraite d’office) +survivor, in relation to a judge or to a prothonotary, +means a person who was married to the judge or pro- +thonotary at the time of the judge’s or prothonotary’s +death or who establishes that he or she was cohabiting +with the judge or prothonotary in a conjugal relationship +at the time of the judge’s or prothonotary’s death and had +so cohabited for a period of at least one year. (survivant) +(2) Section 2 of the Act is amended by adding the +following in alphabetical order: +prothonotary means a prothonotary of the Federal +Court or a prothonotary of the Tax Court of Canada and +includes a supernumerary prothonotary; (protonotaire) +(3) The definition prothonotary in section 2 of the +Act is repealed. +(4) Section 2 of the Act is amended by adding the +following in alphabetical order: +associate judge means an associate judge of the Federal +Court or an associate judge of the Tax Court of Canada +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 21 Criminal Code +Sections 332-333 + +Page 377 +and includes a supernumerary associate judge; (juge ad- +joint) +334 Section 2.1 of the Act is replaced by the fol- +lowing: +Application to prothonotaries +2.1 (1) Subject to subsection (2), sections 26 to 26.3, 34 +and 39, paragraphs 40(1)(a) and (b), subsection 40(2), +sections 41, 41.2 to 42, 43.1 to 56 and 57, paragraph +60(2)(b), subsections 63(1) and (2) and sections 64 to 66 +also apply to a prothonotary. +Prothonotary who made election +(2) Sections 41.2, 41.3, 42 and 43.1 to 52.22 do not apply +to a prothonotary who made an election under the Eco- +nomic Action Plan 2014 Act, No. 2 to continue to be +deemed to be employed in the public service for the pur- +poses of the Public Service Superannuation Act. +335 The heading of Part I of the Act is replaced +by the following: +Judges and Prothonotaries +336 Paragraphs 9(a) and (b) of the Act are re- +placed by the following: +(a) the Chief Justice of Canada, $435,600; and +(b) the eight puisne judges, $403,300 each. +337 Paragraphs 10(a) to (d) of the Act are re- +placed by the following: +(a) the Chief Justice of the Federal Court of Ap- +peal, $371,400; +(b) the other judges of the Federal Court of Ap- +peal, $338,800 each; +(c) the Chief Justice and the Associate Chief Justice of +the Federal Court, $371,400 each; and +(d) the other judges of the Federal Court, $338,800 +each. +338 Section 10.2 of the Act is replaced by the fol- +lowing: +Court Martial Appeal Court +10.2 The yearly salary of the Chief Justice of the Court +Martial Appeal Court of Canada shall be $371,400. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 22 Judges and Prothonotaries +Judges Act +Sections 333-338 + +Page 378 +339 Paragraphs 11(a) to (c) of the Act are re- +placed by the following: +(a) the Chief Justice, $371,400; +(b) the Associate Chief Justice, $371,400; and +(c) the other judges, $338,800 each. +340 The Act is amended by adding the following +after section 11: +Tax Court of Canada prothonotaries +11.1 The yearly salaries of the prothonotaries of the Tax +Court of Canada shall be 80% of the yearly salaries, calcu- +lated in accordance with section 25, of the judges referred +to in paragraph 11(c). +341 Paragraphs 12(a) to (d) of the Act are re- +placed by the following: +(a) the Chief Justice and the Associate Chief Justice of +Ontario, $371,400 each; +(b) the 14 Justices of Appeal, $338,800 each; +(c) the Chief Justice and the Associate Chief Justice of +the Superior Court of Justice, $371,400 each; and +(d) the 212 other judges of the Superior Court of Jus- +tice, $338,800 each. +342 Paragraphs 13(a) to (d) of the Act are re- +placed by the following: +(a) the Chief Justice of Quebec, $371,400; +(b) the 19 puisne judges of the Court of Ap- +peal, $338,800 each; +(c) the Chief Justice, the Senior Associate Chief Jus- +tice and the Associate Chief Justice of the Superior +Court, $371,400 each; and +(d) the +144 +puisne +judges +of +the +Superior +Court, $338,800 each. +343 Paragraphs 14(a) to (d) of the Act are re- +placed by the following: +(a) the Chief Justice of Nova Scotia, $371,400; +(b) the seven other judges of the Court of Ap- +peal, $338,800 each; +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 22 Judges and Prothonotaries +Judges Act +Sections 339-343 + +Page 379 +(c) the Chief Justice and the Associate Chief Justice of +the Supreme Court, $371,400 each; and +(d) the +23 +other +judges +of +the +Supreme +Court, $338,800 each. +344 Paragraphs 15(a) to (d) of the Act are re- +placed by the following: +(a) the Chief Justice of New Brunswick, $371,400; +(b) the five other judges of the Court of Ap- +peal, $338,800 each; +(c) the Chief Justice and the Associate Chief Justice of +the Court of Queen’s Bench, $371,400 each; and +(d) the 20 other judges of the Court of Queen’s +Bench, $338,800 each. +345 Paragraphs 16(a) to (d) of the Act are re- +placed by the following: +(a) the Chief Justice of Manitoba, $371,400; +(b) the six Judges of Appeal, $338,800 each; +(c) the Chief Justice, the Senior Associate Chief Jus- +tice and the Associate Chief Justice of the Court of +Queen’s Bench, $371,400 each; and +(d) the 31 puisne judges of the Court of Queen’s +Bench, $338,800 each. +346 Paragraphs 17(a) to (d) of the Act are re- +placed by the following: +(a) the Chief Justice of British Columbia, $371,400; +(b) the 12 Justices of Appeal, $338,800 each; +(c) the Chief Justice and the Associate Chief Justice of +the Supreme Court, $371,400 each; and +(d) the +86 +other +judges +of +the +Supreme +Court, $338,800 each. +347 Paragraphs 18(a) to (d) of the Act are re- +placed by the following: +(a) the +Chief +Justice +of +Prince +Edward +Is- +land, $371,400; +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 22 Judges and Prothonotaries +Judges Act +Sections 343-347 + +Page 380 +(b) the two other judges of the Court of Ap- +peal, $338,800 each; +(c) the Chief Justice of the Supreme Court, $371,400; +and +(d) the +three +other +judges +of +the +Supreme +Court, $338,800 each. +348 Paragraphs 19(a) to (d) of the Act are re- +placed by the following: +(a) the Chief Justice of Saskatchewan, $371,400; +(b) the seven Judges of Appeal, $338,800 each; +(c) the Chief Justice and the Associate Chief Justice of +the Court of Queen’s Bench, $371,400 each; and +(d) the 33 other judges of the Court of Queen’s +Bench, $338,800 each. +349 Paragraphs 20(a) to (d) of the Act are re- +placed by the following: +(a) the Chief Justice of Alberta, $371,400; +(b) the 10 Justices of Appeal, $338,800 each; +(c) the Chief Justice and the two Associate Chief Jus- +tices of the Court of Queen’s Bench, $371,400 each; +and +(d) the 70 other Justices of the Court of Queen’s +Bench, $338,800 each. +350 Paragraphs 21(a) to (d) of the Act are re- +placed by the following: +(a) the +Chief +Justice +of +Newfoundland +and +Labrador, $371,400; +(b) the five Judges of Appeal, $338,800 each; +(c) the Chief Justice and the Associate Chief Justice of +the Trial Division, $371,400 each; and +(d) the 18 other judges of the Trial Division, $338,800 +each. +351 (1) Paragraphs 22(1)(a) and (b) of the Act are +replaced by the following: +(a) the Chief Justice, $371,400; and +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 22 Judges and Prothonotaries +Judges Act +Sections 347-351 + +Page 381 +(b) the two other judges, $338,800 each. +(2) Paragraphs 22(2)(a) and (b) of the Act are re- +placed by the following: +(a) the Chief Justice, $371,400; and +(b) the two other judges, $338,800 each. +(3) Paragraphs 22(2.1)(a) and (b) of the Act are re- +placed by the following: +(a) the Chief Justice, $371,400; and +(b) the five other judges, $338,800 each. +352 (1) Subsection 25(1) of the Act is replaced by +the following: +Annual adjustment of salary +25 (1) The yearly salaries referred to in sections 9 to 22 +apply in respect of the twelve-month period beginning on +April 1, 2020. +(2) The portion of subsection 25(2) of the Act be- +fore paragraph (a) is replaced by the following: +Annual adjustment of salary +(2) The salary annexed to an office of judge referred to in +sections 9, 10, 10.2, 11 and 12 to 22 for the twelve-month +period beginning on April 1, 2021, and for each subse- +quent twelve-month period, shall be the amount ob- +tained by multiplying +353 Section 26.11 of the Act is replaced by the fol- +lowing: +Definition of judiciary +26.11 In sections 26 and 26.1, judiciary includes pro- +thonotaries. +354 Subsections 26.4(1) and (2) of the Act are re- +placed by the following: +Costs payable to representative of prothonotaries +26.4 (1) The Commission may identify one representa- +tive of the prothonotaries of the Federal Court and one +representative of the prothonotaries of the Tax Court of +Canada participating in an inquiry of the Commission to +whom costs shall be paid in accordance with this section. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 22 Judges and Prothonotaries +Judges Act +Sections 351-354 + +Page 382 +Entitlement to payment of costs +(2) The representatives identified under subsection (1) +are entitled to be paid, out of the Consolidated Revenue +Fund, 95% of the costs determined under subsection (3) +in respect of their participation. +355 The heading before section 27 of the English +version of the Act is replaced by the following: +Special and Representational +Allowances +356 (1) Subsections 27(1) and (1.1) of the Act are +replaced by the following: +Allowance for incidental expenditures actually +incurred +27 (1) On and after April 1, 2020, every judge in receipt +of a salary under this Act is entitled to be paid, up to a +maximum of $7,500 for each year, for reasonable inciden- +tal expenditures that the fit and proper execution of the +office of judge may require, to the extent that the judge +has actually incurred the expenditures and is not entitled +to be reimbursed for them under any other provision of +this Act. +Allowance for incidental expenditures by +prothonotaries +(1.1) On and after April 1, 2020, every prothonotary is +entitled to be paid, up to a maximum of $7,500 for each +year, for reasonable incidental expenditures that the fit +and proper execution of the office of prothonotary may +require, to the extent that the prothonotary has actually +incurred the expenditures and is not entitled to be reim- +bursed for them under any other provision of this Act. +(2) Section 27 of the Act is amended by adding the +following after subsection (2): +Allowance — medical or dental treatment +(2.1) If a judge referred to in subsection (2) is required +to travel for the purpose of receiving a non-elective medi- +cal or dental treatment that is required without delay and +unavailable at or in the immediate vicinity of the place +where the judge resides, the judge is entitled to be paid +an allowance for reasonable expenses actually incurred +while travelling for that purpose, to the extent that the +judge may not be reimbursed for them under any other +provision of this Act. +(3) Subsection 27(6) of the Act is replaced by the +following: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 22 Judges and Prothonotaries +Judges Act +Sections 354-356 + +Page 383 +Representational allowance +(6) On and after April 1, 2020, each of the following +judges is entitled to be paid, as a representational al- +lowance, reasonable travel and other expenses actually +incurred by the judge or the spouse or common-law part- +ner of the judge in discharging the special extra-judicial +obligations and responsibilities that devolve on the +judge, to the extent that those expenses may not be reim- +bursed under any other provision of this Act and their ag- +gregate amount does not exceed in any year the maxi- +mum amount indicated below in respect of the judge: +(a) the Chief Justice of Canada, $25,000; +(b) each puisne judge of the Supreme Court of +Canada, $15,000; +(c) the Chief Justice of the Federal Court of Appeal +and each chief justice described in sections 12 to 21 as +the chief justice of a province, $17,500; +(d) each other chief justice referred to in sections 10 to +21, $15,000; +(e) the Chief Justices of the Court of Appeal of Yukon, +the Court of Appeal of the Northwest Territories, the +Court of Appeal of Nunavut, the Supreme Court of +Yukon, the Supreme Court of the Northwest Territo- +ries and the Nunavut Court of Justice, $15,000 each; +(f) the Chief Justice of the Court Martial Appeal Court +of Canada, $15,000; and +(g) the Senior Judge of the Family Court, and each re- +gional senior judge, of the Superior Court of Justice in +and for the Province of Ontario, $7,500. +357 The heading before section 28 of the Act is +replaced by the following: +Supernumerary Judges and +Prothonotaries +358 The Act is amended by adding the following +after section 29: +Supernumerary prothonotaries +30 (1) If a prothonotary notifies the Minister of Justice +of Canada of his or her election to give up regular judicial +duties and hold office only as a supernumerary prothono- +tary, the prothonotary shall hold the office of supernu- +merary prothonotary from the time notice is given until +he or she reaches the age of retirement, resigns or is re- +moved from or otherwise ceases to hold office, or until +the end of five years from the date of the election, +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 22 Judges and Prothonotaries +Judges Act +Sections 356-358 + +Page 384 +whichever occurs earlier, and shall be paid the salary an- +nexed to that office. +Restriction on election +(2) An election may be made under subsection (1) only +by a prothonotary +(a) who has continued in judicial office for at least 15 +years and whose combined age and number of years in +judicial office is not less than 80; or +(b) who has attained the age of 70 years and has con- +tinued in judicial office for at least 10 years. +Duties of prothonotary +(3) A prothonotary who has made the election referred to +in subsection (1) shall hold himself or herself available to +perform such special judicial duties as may be assigned +to the prothonotary by the chief justice or the associate +chief justice of the court to which he or she is appointed. +Salary of supernumerary prothonotary +(4) The salary of each supernumerary prothonotary is +the salary annexed to the office of a prothonotary. +Deemed election and notice +(5) For the purposes of subsection (1), if a prothonotary +gives notice to the Minister of Justice of Canada of the +prothonotary’s election to be effective on a future day +specified in the notice, being a day on which the pro- +thonotary will be eligible to make the election, the pro- +thonotary is, effective on that day, deemed to have elect- +ed and given notice of the election on that day. +359 Subsection 42(4) of the Act is replaced by the +following: +Definition of judicial office +(4) In this section, judicial office means the office of a +judge of a superior or county court or the office of a pro- +thonotary. +360 The definition judicial office in subsection +43.1(6) of the Act is replaced by the following: +judicial office includes the office of a prothonotary. +(magistrature) +361 Subsection 50(5) of the Act is replaced by the +following: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 22 Judges and Prothonotaries +Judges Act +Sections 358-361 + +Page 385 +Definition of judicial office +(5) In this section, judicial office includes the office of a +prothonotary. +362 Paragraph 69(1)(a) of the Act is replaced by +the following: +(a) a judge of a superior court or a prothonotary, or +363 Section 71 of the Act is replaced by the fol- +lowing: +Powers, rights or duties not affected +71 Nothing in, or done or omitted to be done under the +authority of, any of sections 63 to 70 affects any power, +right or duty of the House of Commons, the Senate or the +Governor in Council in relation to the removal from of- +fice of a judge, a prothonotary or any other person in re- +lation to whom an inquiry may be conducted under any +of those sections. +R.S., c. F-7; 2002, c. 8, s. 14 +Federal Courts Act +364 The definition federal board, commission or +other tribunal in subsection 2(1) of the Federal +Courts Act is replaced by the following: +federal board, commission or other tribunal means +any body, person or persons having, exercising or pur- +porting to exercise jurisdiction or powers conferred by or +under an Act of Parliament or by or under an order made +under a prerogative of the Crown, other than the Tax +Court of Canada or any of its judges or prothonotaries, +any such body constituted or established by or under a +law of a province or any such person or persons appoint- +ed under or in accordance with a law of a province or un- +der section 96 of the Constitution Act, 1867; (office fédé- +ral) +365 Subsection 5(1) of the Act is replaced by the +following: +Constitution of Federal Court of Appeal +5 (1) The Federal Court of Appeal consists of a chief jus- +tice called the Chief Justice of the Federal Court of Ap- +peal, who is the president of the Federal Court of Appeal, +and 14 other judges. +366 (1) Section 12 of the Act is amended by +adding the following after subsection (1): +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 22 Judges and Prothonotaries +Judges Act +Sections 361-366 + +Page 386 +Number of prothonotaries +(2) The Governor in Council may, by regulation, fix the +number of prothonotaries that may be appointed under +subsection (1). +Supernumerary prothonotaries +(2.1) For each office of prothonotary of the Federal +Court, there is an additional office of supernumerary pro- +thonotary that a prothonotary of the Federal Court may +elect under the Judges Act to hold. +(2) Section 12 of the Act is amended by adding the +following after subsection (4): +Workload — supernumerary prothonotaries +(5) The Governor in Council may, by regulation, fix the +workload of a supernumerary prothonotary as a percent- +age of the workload of a prothonotary. +R.S., c. T-2 +Tax Court of Canada Act +367 Paragraph 4(1)(c) of the Tax Court of +Canada Act is replaced by the following: +(c) not more than 23 other judges. +368 The Act is amended by adding the following +after section 11: +Prothonotaries +Prothonotaries +11.1 (1) The Governor in Council may appoint as pro- +thonotaries of the Court any fit and proper persons who +are barristers or advocates in a province and who are, in +the opinion of the Governor in Council, necessary for the +efficient performance of the work of that court that, un- +der the rules of the Court, is to be performed by them. +Number of prothonotaries +(2) The Governor in Council may, by regulation, fix the +number of prothonotaries that may be appointed under +subsection (1). +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 22 Judges and Prothonotaries +Federal Courts Act +Sections 366-368 + +Page 387 +Supernumerary prothonotaries +(3) For each office of prothonotary there shall be the ad- +ditional office of supernumerary prothonotary that a pro- +thonotary of the Court may elect under the Judges Act to +hold. +Powers and duties +(4) The powers, duties and functions of the prothono- +taries shall be determined by the rules of the Court. +Salary, allowances and annuities +(5) Each prothonotary shall be paid a salary, and the al- +lowances and annuities, provided for under the Judges +Act. +Workload — supernumerary prothonotaries +(6) The Governor in Council may, by regulation, fix the +workload of a supernumerary prothonotary as a percent- +age of the workload of a prothonotary. +Immunity from liability +(7) A prothonotary shall have the same immunity from +liability as a judge of the Court. +Term of office +(8) A prothonotary shall hold office during good be- +haviour but may be removed by the Governor in Council +for cause. +Cessation of office +(9) A prothonotary shall cease to hold office on becoming +75 years old. +369 Subsection 20(1.1) of the Act is amended by +striking out “and” at the end of paragraph (k), by +adding “and” at the end of paragraph (l) and by +adding the following after paragraph (l): +(m) empowering a prothonotary to exercise any juris- +diction or powers, even though the jurisdiction or +powers may be of a judicial nature. +370 Paragraph 22(1)(c) of the Act is replaced by +the following: +(c) three judges and one prothonotary of the Court +that are designated from time to time by the Chief Jus- +tice; +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 22 Judges and Prothonotaries +Tax Court of Canada Act +Sections 368-370 + +Page 388 +Terminology Changes +Replacement of “prothonotary” and “prothonotaries” +371 Every reference to “prothonotary” and “pro- +thonotaries” is replaced by a reference to “asso- +ciate judge” and “associate judges”, respectively, +in the following provisions: +(a) in the Federal Courts Act, +(i) the definition federal board, commission or +other tribunal in subsection 2(1), +(ii) section 12 and the heading before it, +(iii) paragraph 45.1(1)(b), and +(iv) paragraphs 46(1)(h) and (i); +(b) in the Garnishment, Attachment and Pen- +sion Diversion Act, +(i) paragraph (a) of the definition salary in +section 4, and +(ii) section 5; +(c) in the Judges Act, +(i) the definitions age of retirement and sur- +vivor in section 2, +(ii) section 2.1, +(iii) the heading of Part I, +(iv) section 10.1, +(v) section 11.1, +(vi) section 26.11, +(vii) subsection 26.3(3), +(viii) subsections 26.4(1) and (3), +(ix) subsection 27(1.1), +(x) the heading before section 28, +(xi) section 30, +(xii) subsection 42(4), +(xiii) the definition judicial office in subsec- +tion 43.1(6), +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 22 Judges and Prothonotaries +Terminology Changes +Section +371 + +Page 389 +(xiv) subsection 50(5), +(xv) paragraph 69(1)(a), and +(xvi) section 71; +(d) in the Tax Court of Canada Act, +(i) section 11.1 and the heading before it, +(ii) paragraph 20(1.1)(m), and +(iii) paragraph 22(1)(c); and +(e) subsection 13(4) of the Expenditure Re- +straint Act. +Transitional Provisions +Prothonotaries +372 For greater certainty, every person who, im- +mediately before the day on which this section +comes into force, holds office as prothonotary of +the Federal Court, supernumerary prothonotary +of the Federal Court, prothonotary of the Tax +Court of Canada or supernumerary prothonotary +of the Tax Court of Canada continues in office as +associate judge of the Federal Court, supernu- +merary associate judge of the Federal Court, as- +sociate judge of the Tax Court of Canada or su- +pernumerary associate judge of the Tax Court of +Canada, as the case may be. +Judges Act +373 For greater certainty, for the purposes of the +Judges Act, nothing in section 371 of this Act af- +fects the number of years during which a person +who held office as prothonotary, as defined in +that Act as it read immediately before the day on +which this section comes into force, has contin- +ued in judicial office. +Tax Court of Canada Act +374 Despite paragraph 22(1)(c) of the Tax Court +of Canada Act, the rules committee referred to in +that Act may exercise its powers and perform its +duties without the designation, as a member of +the rules committee, of a person appointed un- +der section 11.1 of that Act until a person is first +appointed under that section. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 22 Judges and Prothonotaries +Terminology Changes +Sections 371-374 + +Page 390 +Coordinating Amendments +Bill C-9 +375 (1) Subsections (2) to (10) apply if Bill C-9, in- +troduced in the 1st session of the 44th Parliament +and entitled An Act to amend the Judges Act (in +this section referred to as the “other Act”), re- +ceives royal assent. +(2) The reference to “Minister of Justice of +Canada” is replaced with “Minister” in section 30 +of the Judges Act. +(3) If section 2 of the other Act comes into force +before subparagraph 371(c)(ii) of this Act, then +subsection 2.1(1) of the Judges Act is replaced by +the following: +Application to prothonotaries +2.1 (1) Subject to subsection (2), sections 26 to 26.3, 34 +and 39, paragraphs 40(1)(a) and (b), subsection 40(2), +sections 41, 41.2 to 42, 43.1 to 56 and 57, paragraph +60(2)(b) and Part IV also apply to a prothonotary. +(4) If subparagraph 371(c)(ii) of this Act comes +into force before section 2 of the other Act, then +subsection 2.1(1) of the Judges Act is replaced by +the following: +Application to associate judges +2.1 (1) Subject to subsection (2), sections 26 to 26.3, 34 +and 39, paragraphs 40(1)(a) and (b), subsection 40(2), +sections 41, 41.2 to 42, 43.1 to 56 and 57, paragraph +60(2)(b) and Part IV also apply to an associate judge. +(5) If section 2 of the other Act comes into force +on the same day as subparagraph 371(c)(ii) of +this Act, then that subparagraph 371(c)(ii) is +deemed to have come into force before that sec- +tion 2 and subsection (4) applies as a conse- +quence. +(6) If section 10 of the other Act comes into force +before section 362 of this Act, then +(a) that section 362 and section 363 of this Act +are deemed never to have come into force and +are repealed; +(b) section 79 of the Judges Act is replaced by +the following: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 22 Judges and Prothonotaries +Coordinating Amendments +Section +375 + +Page 391 +Definition of judicial office +79 In this Division, judicial office includes the office of +a prothonotary. +(c) paragraph 371(c) of this Act is amended by +adding “and” after subparagraph (xiv) and by +replacing subparagraphs (xv) and (xvi) with +the following: +(xv) section 79; +(7) If section 362 of this Act comes into force be- +fore section 10 of the other Act and that section 10 +comes into force before subparagraph 371(c)(xv) +of this Act, then +(a) section 79 of the Judges Act is replaced by +the following: +Definition of judicial office +79 In this Division, judicial office includes the office of +a prothonotary. +(b) paragraph 371(c) of this Act is amended by +adding “and” after subparagraph (xiv) and by +replacing subparagraphs (xv) and (xvi) with +the following: +(xv) section 79; +(8) If section 10 of the other Act comes into force +on the same day as section 362 of this Act, then +that section 10 is deemed to have come into force +before that section 362 and subsection (6) applies +as a consequence. +(9) If paragraph 371(c) of this Act comes into +force before section 12 of the other Act, then sec- +tion 79 of the Judges Act is replaced by the fol- +lowing: +Definition of judicial office +79 In this Division, judicial office includes the office of +an associate judge. +(10) If section 12 of the other Act comes into force +on the same day as paragraph 371(c) of this Act, +then that paragraph 371(c) is deemed to have +come into force before that section 12 and sub- +section (9) applies as a consequence. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 22 Judges and Prothonotaries +Coordinating Amendments +Section +375 + +Page 392 +Coming into Force +Order in council +376 Subsections 333(3) and (4) and sections 371 to +373 come into force on a day to be fixed by order +of the Governor in Council. +DIVISION 23 +2001, c. 27 +Immigration and Refugee Protection +Act +Amendments to the Act +377 (1) Paragraph 10.3(1)(a) of the French ver- +sion of the Immigration and Refugee Protection +Act is replaced by the following: +a) les catégories auxquelles le paragraphe 10.1(1) s’ap- +plique; +(2) Paragraphs 10.3(1)(h) to (j) of the Act are re- +placed by the following: +(h) the basis on which an eligible foreign national may +be ranked; +(h.1) subject to subsection (1.01), the establishment of +categories of eligible foreign nationals for the purpos- +es of ranking, which groupings may consist of +(i) all eligible foreign nationals, +(ii) eligible foreign nationals who are eligible to be +members of a class referred to in an instruction giv- +en under paragraph (a), or +(iii) eligible foreign nationals who are eligible to be +members of a category established in an instruction +given under paragraph (h.2); +(h.2) the establishment of categories for the purposes +of ranking and the criteria for eligibility to be a mem- +ber of a category; +(i) the rank within a grouping that an eligible foreign +national must occupy to be invited to make an applica- +tion in respect of a class referred to in an instruction +given under paragraph (a); +(j) the number of invitations that may be issued with- +in a specified period in respect of a grouping; +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 22 Judges and Prothonotaries +Coming into Force +Sections 376-377 + +Page 393 +(j.1) the class referred to in an instruction given under +paragraph (a) in respect of which an eligible foreign +national who is invited to make an application must +apply, if the foreign national is eligible to be a member +of more than one class; +(3) Subsection 10.3(2) of the Act is replaced by the +following: +Category — condition +(1.01) An instruction given under paragraph (1)(h.1) +must not establish a category in respect of which a public +consultation process referred to in subsection 10.5(1) has +not been given the opportunity to provide advice and rec- +ommendations. +Category — economic goal +(1.1) If the Minister establishes a category in an instruc- +tion given under paragraph (1)(h.2), the Minister shall +set out, in the instruction, the economic goal that the +Minister seeks to support in establishing the category. +Clarification +(2) For greater certainty, an instruction given under +paragraph (1)(j) may provide that the number of invita- +tions that may be issued in any specified period in re- +spect of a grouping be zero. +377.1 The Act is amended by adding the follow- +ing after section 10.4: +Consultation process +10.5 (1) For the purpose of establishing categories of el- +igible +foreign +nationals +under +subparagraph +10.3(1)(h.1)(iii), the Minister must engage in a public +consultation +process +with +stakeholders, +including +provinces and territories, industry, unions, employers, +workers, worker advocacy groups, settlement provider +organizations and immigration researchers and practi- +tioners, to obtain information, advice and recommenda- +tions in respect of the labour market conditions, includ- +ing occupations expected to face shortage conditions, as +well as on how categories can be formed to meet econom- +ic goals. +Advice and recommendations +(2) The advice and recommendations from the public +consultation +process +must +be +based +on +written +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 23 Immigration and Refugee Protection Act +Amendments to the Act +Sections 377-377.1 + +Page 394 +submissions provided by relevant industry members and +stakeholders. +Report +(3) The Minister shall cause to be tabled before each +House of Parliament, not later than the fifth sitting day of +that House after January 31 following the end of each fis- +cal year, a report containing the list of the categories of +eligible foreign nationals established in an instruction +made under paragraph 10.3(1)(h.1) and the selection cri- +teria and the process applied for the establishment of +those categories. +Referral +(4) After it is tabled, the report stands referred to the +committee of the Senate, the House of Commons or both +Houses of Parliament that may be designated or estab- +lished for the purpose of reviewing the report. +378 (1) Subsection 11.2(1) of the Act is replaced +by the following: +Visa or other document not to be issued +11.2 (1) An officer may not issue a visa or other docu- +ment in respect of an application for permanent resi- +dence to a foreign national who was issued an invitation +under Division 0.1 to make that application if — at the +time the invitation was issued or at the time the officer +received their application — the foreign national +(a) did not meet the criteria set out in an instruction +given under paragraph 10.3(1)(e); +(b) did not have the qualifications on the basis of +which they were ranked under an instruction given +under paragraph 10.3(1)(h) and were issued the invita- +tion; or +(c) did not meet the criteria for membership in a cate- +gory that was established in an instruction given un- +der paragraph 10.3(1)(h.2), if they were issued an invi- +tation on the basis that they were eligible to be a mem- +ber of that category. +(2) Paragraph 11.2(2)(a) of the Act is replaced by +the following: +(a) the foreign national did not meet the criteria set +out in an instruction given under paragraph 10.3(1)(e) +— or they did not have the qualifications on the basis +of which they were ranked under an instruction given +under paragraph 10.3(1)(h) or did not meet the criteria +for membership in a category that was established in +an instruction given under paragraph 10.3(1)(h.2) — +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 23 Immigration and Refugee Protection Act +Amendments to the Act +Sections 377.1-378 + +Page 395 +because the foreign national’s birthday occurred after +the invitation was issued; or +(3) Paragraph 11.2(2)(b) of the Act is amended by +striking out “and” at the end of subparagraph (i) +and by adding the following after that subpara- +graph: +(i.1) they met the criteria for membership of a cate- +gory established in an instruction given under para- +graph 10.3(1)(h.2), if they were issued the invitation +on the basis that they were eligible to be a member +of that category, and +379 Subsection 94(2) of the Act is amended by +adding the following after paragraph (a): +(a.1) any +instructions +given +under +paragraph +10.3(1)(h.2) that establish a category of eligible foreign +nationals, the economic goal sought to be supported in +establishing the category and the number of foreign +nationals invited to make an application for perma- +nent residence in respect of the category; +DIVISION 24 +R.S., c. O-9 +Old Age Security Act +Amendment to the Act +380 Subparagraph (c)(i.1) of the definition in- +come in section 2 of the Old Age Security Act is +replaced by the following: +(i.1) the amount of the payment under the program +referred to in section 275 of the Budget Implemen- +tation Act, 2021, No. 1, +Coming into Force +June 29, 2021 +381 This Division is deemed to have come into +force on June 29, 2021. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 23 Immigration and Refugee Protection Act +Amendments to the Act +Sections 378-381 + +Page 396 +DIVISION 25 +COVID-19 Benefits Adjustments +2020, c. 5, s. 8 +Canada Emergency Response +Benefit Act +382 Subparagraph 6(1)(b)(ii) of the Canada +Emergency Response Benefit Act is replaced by +the following: +(ii) benefits, as defined in subsection 2(1) of the +Employment Insurance Act, or an employment in- +surance emergency response benefit referred to in +section 153.7 of that Act, +383 The Act is amended by adding the following +after section 14: +Receipt of benefits, allowances or money +15 (1) If, for any four-week period, the Minister deter- +mines that a worker received an income support payment +for which they were not eligible by reason only that they +received one or more payments of benefits, allowances or +money referred to in subparagraph 6(1)(b)(ii) or (iii), the +Minister is deemed to have determined under subsection +12(2) that the amount that the worker must repay under +subsection 12(1) is the amount determined by the formu- +la +$2,000 × (A ÷ 4) +where +A +is the number of weeks for which the worker received +such benefits, allowances or money during that four- +week period. +Non-application +(2) Subsection (1) does not apply in respect of an em- +ployment insurance emergency response benefit received +by the worker if the Canada Employment Insurance +Commission informs the Minister that subsection (1) +should not apply in respect of that benefit and, if the +Commission does so, the worker is, despite subparagraph +6(1)(b)(ii), deemed to have been eligible to receive the in- +come support payment. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 25 COVID-19 Benefits Adjustments +Sections 382-383 + +Page 397 +2020, c. 7 +Canada Emergency Student Benefit +Act +384 The Canada Emergency Student Benefit Act +is amended by adding the following after section +15: +Receipt of benefits, allowances or money +15.1 (1) If, for any four-week period, the Minister deter- +mines that a student received a Canada emergency stu- +dent benefit for which they were not eligible by reason +only that they received one or more payments of benefits, +allowances or money referred to in subparagraph +6(1)(b)(ii) or (iii), the Minister is deemed to have deter- +mined under subsection 13(2) that the amount that the +worker must repay under subsection 13(1) is, despite +subsection 13(1), the amount determined by the formula +A × (B ÷ 4) +where +A +is +(a) $2,000, in the case of a student with a depen- +dant or a student with a disability, and +(b) $1,250, in any other case; and +B +is the number of weeks for which the student re- +ceived such benefits, allowances or money during +that four-week period. +Non-application +(2) Subsection (1) does not apply in respect of an em- +ployment insurance emergency response benefit received +by the student if the Canada Employment Insurance +Commission informs the Minister that subsection (1) +should not apply in respect of that benefit and, if the +Commission does so, the student is, despite subpara- +graph 6(1)(b)(ii), deemed to have been eligible to receive +the income support payment. +1996, c. 23 +Employment Insurance Act +385 Section 153.9 of the Employment Insurance +Act is amended by adding the following after sub- +section (4): +Receipt of income support payment +(5) If, for any week, a claimant received an employment +insurance emergency response benefit for which they +were not eligible by reason only of paragraph (2)(c), the +claimant, despite that paragraph, is deemed to have been +eligible for the benefit unless the Commission has, under +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 25 COVID-19 Benefits Adjustments +Canada Emergency Student Benefit Act +Sections 384-385 + +Page 398 +subsection 15(2) of the Canada Emergency Response +Benefit Act, informed the Minister, as defined in section +2 of that Act, that subsection 15(1) of that Act should not +apply in respect of the claimant. +Receipt of Canada emergency student benefit +(6) If, for any week, a claimant received an employment +insurance emergency response benefit for which they +were not eligible by reason only of paragraph (2)(d), the +claimant, despite that paragraph, is deemed to have been +eligible for the benefit unless the Commission has, under +subsection 15.1(2) of the Canada Emergency Student +Benefit Act, informed the Minister, as defined in section +2 of that Act, that subsection 15.1(1) of that Act should +not apply in respect of the claimant. +Coming into Force +March 15, 2020 +386 Section 382 is deemed to have come into +force on March 15, 2020. +DIVISION 26 +1996, c. 23 +Employment Insurance Act +Amendments to the Act +387 (1) The definition employment benefits in +subsection 2(1) of the Employment Insurance +Act is repealed. +(2) The definition benefits in subsection 2(1) of +the Act is replaced by the following: +benefits means unemployment benefits payable under +Part I, VII.1 or VIII; (prestation) +(3) Subsection 2(1) of the Act is amended by +adding the following in alphabetical order: +employment support measure means a measure es- +tablished under section 59; (mesure de soutien à l’em- +ploi) +388 (1) Paragraph 5(1)(e) of the Act is replaced +by the following: +(e) employment in Canada of an individual as the +sponsor or co-ordinator of an employment support +measure other than one referred to in paragraph 59(c) +or (d). +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 25 COVID-19 Benefits Adjustments +Employment Insurance Act +Sections 385-388 + +Page 399 +(2) Paragraph 5(6)(f) of the Act is replaced by the +following: +(f) any employment provided under regulations made +under section 24 or under an employment support +measure other than one referred to in paragraph 59(c) +or (d). +389 Paragraph 8(2)(c) of the Act is replaced by +the following: +(c) receiving assistance under an employment support +measure other than one referred to in paragraph 59(c) +or (d); or +390 Subsection 19(4) of the Act is replaced by the +following: +Earnings and allowances from employment support +measures, courses and programs +(4) Earnings from employment under an employment +support measure other than one referred to in paragraph +59(c) or (d) and earnings or allowances payable to a +claimant for attending a course or program of instruction +or training shall not be deducted under this section ex- +cept in accordance with the regulations. +391 The heading before section 25 of the Act is +replaced by the following: +Courses, Programs and Employment +Support Measures +392 (1) Paragraph 25(1)(a) of the Act is replaced +by the following: +(a) attending a course or program of instruction or +training — at the claimant’s own expense, under an +employment support measure referred to in para- +graph 59(a) or under a measure that is the subject of +an agreement under section 63 — to which the Com- +mission, or an authority that the Commission desig- +nates, has referred the claimant; or +(2) Subparagraph 25(1)(b)(i) of the Act is re- +placed by the following: +(i) for which assistance has been provided for the +claimant under a prescribed employment support +measure — other than one referred to in paragraph +59(a) or (c) — or a prescribed measure that is the +subject of an agreement under section 63, and +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 26 Employment Insurance Act +Amendments to the Act +Sections 388-392 + +Page 400 +393 Section 26 of the Act is replaced by the fol- +lowing: +Benefits are not earnings +26 For the purposes of this Part, Part IV, the Income Tax +Act and the Canada Pension Plan, benefits paid to a +claimant while employed under an employment support +measure — other than one referred to in paragraph 59(c) +or (d) — or under a measure that is the subject of an +agreement under section 63 are not earnings from em- +ployment. +394 Paragraph 27(1.1)(a) of the Act is replaced by +the following: +(a) the Commission or an authority that the Commis- +sion designates has, with the agreement of the +claimant, referred the claimant to a course or program +of instruction or training or to any other employment +activity for which assistance has been provided under +an employment support measure other than one re- +ferred to in paragraph 59(c); and +395 The heading of Part II of the Act is replaced +by the following: +Employment Support Measures +and National Employment +Service +396 Section 56 of the Act is replaced by the fol- +lowing: +Purpose +56 The purpose of this Part is to help maintain a sustain- +able employment insurance system through the estab- +lishment of employment support measures and the +maintenance of a national employment service. +397 (1) The portion of subsection 57(1) of the Act +before paragraph (a) is replaced by the follow- +ing: +Guidelines +57 (1) Employment support measures under this Part +shall be established in accordance with the following +guidelines: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 26 Employment Insurance Act +Amendments to the Act +Sections 392-397 + +Page 401 +(2) Paragraph 57(1)(a) of the French version of +the Act is replaced by the following: +a) l’harmonisation des mesures avec les projets d’em- +ploi provinciaux en vue d’éviter tout double emploi et +tout chevauchement; +(3) Paragraph 57(1)(d.1) of the Act is replaced by +the following: +(d.1) availability of assistance under the measures in +either official language where there is significant de- +mand for that assistance in that language; +(4) The portion of paragraph 57(1)(e) of the Act +before subparagraph (i) is replaced by the fol- +lowing: +(e) commitment by persons receiving assistance un- +der the measures to +(5) Paragraph 57(1)(f) of the Act is replaced by +the following: +(f) implementation of the measures within a frame- +work for evaluating their success in assisting persons +to obtain or keep employment. +(6) Subsections 57(2) and (3) of the Act are re- +placed by the following: +Working in concert and consultations +(2) To give effect to the purpose and guidelines of this +Part, the Commission shall work in concert with provin- +cial governments and consult with workers and employ- +ers to align employment support measures with labour +market needs. +398 Paragraphs 58(a) and (b) of the Act are re- +placed by the following: +(a) an insured person who requests assistance under +an employment support measure and, when request- +ing the assistance, is a person for whom a benefit peri- +od is established or whose benefit period has ended +within the previous 60 months or a person who paid, +in at least 3 of the last 10 years, employee’s premiums +that did not entitle them to a refund under subsection +96(4); and +(b) an insured person who requests assistance under +an employment support measure and, when request- +ing assistance, is a person who was in receipt of the +employment insurance emergency response benefit +within the previous 60 months. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 26 Employment Insurance Act +Amendments to the Act +Sections 397-398 + +Page 402 +399 Section 59 of the Act is replaced by the fol- +lowing: +Employment support measures +59 The Commission may establish employment support +measures to help insured participants and other workers, +including workers in groups underrepresented in the +labour market, to obtain or keep employment, including +measures to +(a) provide insured participants with courses or pro- +grams of instruction or training; +(b) provide insured participants with employment op- +portunities or provide employment support; +(c) provide workers with employment assistance ser- +vices; and +(d) support research, innovation or partnerships re- +lated to helping workers to prepare for, obtain or keep +employment and to be productive participants in the +labour market. +400 Subsections 60(4) and (5) of the Act are re- +pealed. +401 Sections 61 and 62 of the Act are replaced by +the following: +Financial assistance +61 The Commission may, in accordance with terms and +conditions approved by the Treasury Board, provide fi- +nancial assistance for the purpose of implementing em- +ployment support measures. +Agreements for administering employment support +measures +62 The Commission may, with the approval of the Min- +ister, enter into an agreement or arrangement for the ad- +ministration of employment support measures on its be- +half by a department, board or agency of the Government +of Canada, another government or government agency in +Canada or any other public or private organization. +402 Paragraphs 63(1)(a) and (b) of the Act are re- +placed by the following: +(a) any costs of measures implemented by the govern- +ment, government agency or organization that are +consistent with the purpose and guidelines of this +Part; and +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 26 Employment Insurance Act +Amendments to the Act +Sections 399-402 + +Page 403 +(b) any administration costs that the government, +government agency or organization incurs in imple- +menting the measures. +403 Section 64 of the Act is replaced by the fol- +lowing: +No appeal +64 A decision of the Commission made in relation to +employment support measures, other than a decision un- +der section 65.1, is not subject to review under section +112. +404 (1) Paragraph 75(d) of the Act is replaced by +the following: +(d) received as repayments of overpayments by the +Commission under section 61 for employment support +measures authorized by Part II; +(2) Paragraph 75(e) of the French version of the +Act is replaced by the following: +e) reçues à titre de remboursement de versements ex- +cédentaires faits par la Commission aux termes d’ac- +cords conclus au titre de l’article 63; +405 Paragraph 77(1)(b) of the Act is replaced by +the following: +(b) all amounts paid under section 61 for employment +support measures; +Transitional Provision +Agreements or arrangements +406 The Employment Insurance Act, as it read +immediately before the day on which this Divi- +sion comes into force, continues to apply to +agreements or arrangements entered into under +Part II of that Act that are in force on that day. +R.S., c. 1 (5th Supp.) +Consequential Amendment to the +Income Tax Act +407 Subparagraph 56(1)(r)(iii) of the Income Tax +Act is amended by adding “and” at the end of +clause (A) and by repealing clause (B). +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 26 Employment Insurance Act +Amendments to the Act +Sections 402-407 + +Page 404 +DIVISION 27 +Benefits Related to Employment +1996, c. 23 +Employment Insurance Act +Amendments to the Act +408 Subsections 12(2.3) to (2.5) of the Employ- +ment Insurance Act are replaced by the follow- +ing: +General maximum — exception for seasonal workers +(2.3) Despite subsection (2), the maximum number of +weeks for which benefits may be paid in a benefit period +to a claimant because of a reason other than those men- +tioned in subsection (3) shall be determined in accor- +dance with the table set out in Schedule V by reference to +the regional rate of unemployment that applies to the +claimant and the number of hours of insurable employ- +ment of the claimant in their qualifying period if +(a) the following conditions are met: +(i) the date on which a benefit period for the +claimant is established falls within the period be- +ginning on September 26, 2021 and ending on Octo- +ber 28, 2023, +(ii) on the date on which the benefit period is estab- +lished, the claimant is ordinarily resident in a re- +gion described in Schedule VI, +(iii) in the 260 weeks before the date on which the +benefit period referred to in subparagraph (i) be- +gins, at least three benefit periods were established +during which regular benefits were paid or payable, +and +(iv) at least two of the benefit periods referred to in +subparagraph (iii) began around the same time of +year as the benefit period referred to in subpara- +graph (i) began; or +(b) the conditions referred to in subparagraphs (a)(i) +and (ii) are met and the claimant had met the criteria +set out in paragraphs 77.992(2)(b) to (d) of the Em- +ployment Insurance Regulations — taking into ac- +count subsections 77.992(3) and (4) of those Regula- +tions — in respect of a benefit period established for +the claimant on a date within the period referred to in +paragraph 77.992(2)(a) of those Regulations. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 27 Benefits Related to Employment +Section +408 + +Page 405 +Establishment of benefit period — presumption +(2.4) For the purposes of subparagraph (2.3)(a)(iii), a +claimant’s benefit period established before the begin- +ning of the 260-week period is considered to have been +established within the 260-week period if the claimant re- +ceived a notification of payment or non-payment with re- +spect to any week that falls within that 260-week period. +Beginning of benefit period — presumption +(2.5) For the purposes of subparagraph (2.3)(a)(iv), a +benefit period in a previous year is considered to have +begun around the same time of year if it began during the +period that begins eight weeks before and ends eight +weeks after the week that is +(a) 52 weeks before the first week of the benefit period +referred to in subparagraph (2.3)(a)(i); +(b) 104 weeks before the first week of the benefit peri- +od referred to in subparagraph (2.3)(a)(i); +(c) 156 weeks before the first week of the benefit peri- +od referred to in subparagraph (2.3)(a)(i); +(d) 208 weeks before the first week of the benefit peri- +od referred to in subparagraph (2.3)(a)(i); or +(e) 260 weeks before the first week of the benefit peri- +od referred to in subparagraph (2.3)(a)(i). +409 Schedule V to the Act is replaced by the +Schedule V set out in Schedule 3 to this Act. +410 Schedule VI to the Act is amended by replac- +ing the reference after the heading “SCHEDULE +VI” with the following: +(Subparagraph 12(2.3)(a)(ii)) +Transitional Provision +Continued application — before September 25, 2022 +411 Schedule V to the Employment Insurance +Act, as it read immediately before September 25, +2022, continues to apply in respect of a claimant +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 27 Benefits Related to Employment +Employment Insurance Act +Sections 408-411 + +Page 406 +whose benefit period, as those terms are defined +in subsection 2(1) of that Act, begins before +September 25, 2022. +2021, c. 23 +Budget Implementation Act, 2021, +No. 1 +412 The Budget Implementation Act, 2021, No. 1 +is amended by adding the following after section +350: +Transitional Provisions +Continued application — before September 25, 2022 +350.1 (1) Subsection 35(6), paragraph 35(7)(g) +and section 36 of the former Regulations contin- +ue to apply in respect of a claimant’s earnings if, +but for this subsection, the earnings would be al- +located under subsection 36(9) or (10) of the new +Regulations to a number of weeks the first week +of which falls within the period beginning on +September 26, 2021 and ending on September 24, +2022. +Definitions +(2) The following definitions apply in this sec- +tion. +claimant has the same meaning as in subsection +2(1) of the Employment Insurance Act. (presta- +taire) +earnings means the earnings referred to in sub- +sections 36(9) and (10) of the new Regulations. +(rémunération) +former Regulations means the Employment In- +surance Regulations as they read immediately +before September 25, 2022. (ancien règlement) +new Regulations means the Employment Insur- +ance Regulations as they read on September 25, +2022. (nouveau règlement) +Coordinating Amendments +Bill C-8 +413 (1) Subsections (2) to (4) apply if Bill C-8, in- +troduced in the 1st session of the 44th Parliament +and entitled the Economic and Fiscal Update Im- +plementation Act, 2021 (in this section referred to +as the “other Act”), receives royal assent. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 27 Benefits Related to Employment +Employment Insurance Act +Sections 411-413 + +Page 407 +(2) If section 47 of the other Act comes into force +before section 408 of this Act, then +(a) sections 408 and 410 of this Act are deemed +never to have come into force and are re- +pealed; and +(b) subparagraph 12(2.3)(a)(i) of the Employ- +ment Insurance Act is replaced by the follow- +ing: +(i) the date on which a benefit period for the +claimant is established falls within the period be- +ginning on September 26, 2021 and ending on Octo- +ber 28, 2023, +(3) If section 408 of this Act comes into force be- +fore section 47 of the other Act, then sections 47 +and 48 of the other Act are deemed never to have +come into force and are repealed. +(4) If section 47 of the other Act comes into force +on the same day as section 408 of this Act, then +sections 47 and 48 of the other Act are deemed +never to have come into force and are repealed. +Coming into Force +September 25, 2022 +414 (1) Sections 409 and 411 come into force, or +are deemed to have come into force, on Septem- +ber 25, 2022. +Royal assent or September 25, 2022 +(2) Section 412 comes into force on the day on +which this Act receives royal assent or, if that day +is after September 25, 2022, is deemed to have +come into force on September 25, 2022. +DIVISION 28 +R.S., c. C-8 +Canada Pension Plan +Amendments to the Act +415 The definition contributory period in subsec- +tion 2(1) of the Canada Pension Plan is replaced +by the following: +contributory period of a contributor has, subject to +paragraph 44(2)(b) and subsections 44(5) and 56(5), the +meaning assigned by section 49; (période cotisable) +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 27 Benefits Related to Employment +Coordinating Amendments +Sections 413-415 + +Page 408 +416 (1) Paragraph 44(1)(h) of the Act is replaced +by the following: +(h) a post-retirement disability benefit shall be paid to +a beneficiary of a retirement pension who has not +reached 65 years of age and is disabled if +(i) the beneficiary has made base contributions for +not less than the minimum qualifying period and +that period ends after 2018, +(ii) the beneficiary is a contributor to whom a post- +retirement disability benefit would have been +payable at the time the contributor is deemed to +have become disabled if an application for a post- +retirement disability benefit had been received be- +fore the application was actually received, or +(iii) the beneficiary is a contributor to whom a +post-retirement disability benefit would have been +payable at the time the contributor is deemed to +have become disabled if a division of unadjusted +pensionable earnings that was made under section +55 or 55.1 had not been made. +(2) The portion of subsection 44(4) of the Act be- +fore paragraph (c) is replaced by the following: +Calculation of minimum qualifying period — post- +retirement disability benefit +(4) For the purposes of paragraph (1)(h) and, if a post- +retirement disability benefit is payable to a contributor, +paragraph (1)(e), the contributor is deemed to have made +base contributions for not less than the minimum quali- +fying period only if the contributor has made base contri- +butions during their contributory period on earnings that +are not less than the contributor’s basic exemption, cal- +culated without regard to subsection 20(2), +(a) for at least four of the last six calendar years in- +cluded either wholly or partly in the contributor’s con- +tributory period; +(b) for at least 25 calendar years included either whol- +ly or partly in the contributor’s contributory period, of +which at least three are in the last six calendar years +included either wholly or partly in the contributor’s +contributory period; or +(3) Section 44 of the Act is amended by adding the +following after subsection (4): +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 28 Canada Pension Plan +Amendments to the Act +Section +416 + +Page 409 +Contributory period — post-retirement disability +benefit +(5) For the purposes of subsection (4), the contributory +period of a contributor is the period +(a) commencing when they reach 18 years of age, and +(b) ending with the month in which they are deter- +mined to have become disabled for the purpose of +paragraph (1)(h), +but excluding +(c) any month that was excluded from the contribu- +tor’s contributory period under this Act or under a +provincial pension plan by reason of disability, and +(d) in relation to any benefits payable under this Act +for any month after December 1977, any month for +which the contributor was a family allowance recipient +in a year for which the contributor’s base unadjusted +pensionable earnings are less than the contributor’s +basic exemption for the year, calculated without re- +gard to subsection 20(2). +417 The portion of paragraph 49(b) of the Act be- +fore subparagraph (i) is replaced by the follow- +ing: +(b) where a benefit other than a disability pension or a +post-retirement disability benefit commences after the +end of 1986, with the earliest of +418 (1) The portion of paragraph (a) of the de- +scription of G in section 51.1 of the Act before the +formula is replaced by the following: +(a) the lesser of 1 and the number determined by the +formula +(2) The description of M7 in section 51.1 of the Act +is replaced by the following: +M7 +is the number of months in the contributor’s first +additional contributory period in the year in +which they were deemed to have become disabled +that are before the month following the month in +which they were deemed to have become disabled; +and +(3) Section 51.1 of the Act is renumbered as sub- +section 51.1(1) and is amended by adding the fol- +lowing: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 28 Canada Pension Plan +Amendments to the Act +Sections 416-418 + +Page 410 +Year in which first additional contributory period +begins +(2) For the purposes of the descriptions of A to F in sub- +section (1), if the contributor’s first additional contribu- +tory period begins in the six years before the year in +which they were deemed to have become disabled, the +Year’s Maximum Pensionable Earnings for the year in +which their first additional contributory period begins is +replaced by the prorated portion determined by the for- +mula +A x (M ÷ 12) +where +A +is the Year’s Maximum Pensionable Earnings for the +year in which the contributor’s first additional con- +tributory period begins; and +M +is the number of months in that year that are includ- +ed in the contributor’s first additional contributory +period. +419 (1) The portion of paragraph (a) of the de- +scription of G in section 51.2 of the Act before the +formula is replaced by the following: +(a) the lesser of 1 and the number determined by the +formula +(2) The description of M7 in section 51.2 of the Act +is replaced by the following: +M7 +is the number of months in the contributor’s sec- +ond additional contributory period in the year in +which they were deemed to have become disabled +that are before the month following the month in +which they were deemed to have become disabled; +and +(3) Section 51.2 of the Act is renumbered as sub- +section 51.2(1) and is amended by adding the fol- +lowing: +Year in which second additional contributory period +begins +(2) For the purposes of the descriptions of A to F in sub- +section (1), if the contributor’s second additional contrib- +utory period begins in the six years before the year in +which they were deemed to have become disabled, the +Year’s Maximum Pensionable Earnings for the year in +which their second additional contributory period begins +is replaced by the prorated portion determined by the +formula +A x (M ÷ 12) +where +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 28 Canada Pension Plan +Amendments to the Act +Sections 418-419 + +Page 411 +A +is the Year’s Maximum Pensionable Earnings for the +year in which the contributor’s second additional +contributory period begins; and +M +is the number of months in that year that are includ- +ed in the contributor’s second additional contributo- +ry period. +420 Section 53.3 of the Act is amended by adding +the following after subsection (4): +Year in which first additional contributory period +begins +(5) For the purposes of the descriptions of A to E in sub- +section (1), if the contributor’s first additional contribu- +tory period begins in the five years before the year in +which they became a family allowance recipient, the +Year’s Maximum Pensionable Earnings for the year in +which their first additional contributory period begins is +replaced by the prorated portion determined by the for- +mula +A x (M ÷ 12) +where +A +is the Year’s Maximum Pensionable Earnings for the +year in which the contributor’s first additional con- +tributory period begins; and +M +is the number of months in that year that are includ- +ed in the contributor’s first additional contributory +period. +421 Section 53.4 of the Act is amended by adding +the following after subsection (3): +Year in which second additional contributory period +begins +(4) For the purposes of the descriptions of A to E in sub- +section (1), if the contributor’s second additional contrib- +utory period begins in the five years before the year in +which they became a family allowance recipient, +(a) the Year’s Maximum Pensionable Earnings for the +year in which their second additional contributory pe- +riod begins is replaced by the prorated portion deter- +mined by the formula +A x (M ÷ 12) +where +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 28 Canada Pension Plan +Amendments to the Act +Sections 419-421 + +Page 412 +A +is the Year’s Maximum Pensionable Earnings for +the year in which the contributor’s second addi- +tional contributory period begins, and +M +is the number of months in that year that are in- +cluded in the contributor’s second additional con- +tributory period; and +(b) the Year’s Additional Maximum Pensionable +Earnings for the year in which their second additional +contributory period begins is replaced by the prorated +portion determined by the formula +A x (M ÷ 12) +where +A +is the Year’s Additional Maximum Pensionable +Earnings for the year in which the contributor’s +second additional contributory period begins, and +M +is the number of months in that year that are in- +cluded in the contributor’s second additional con- +tributory period. +Coming into Force +Non-application — subsection 114(2) of Canada +Pension Plan +422 (1) Subsection 114(2) of the Canada Pension +Plan does not apply in respect of the amend- +ments to that Act contained in this Division. +Order in council +(2) This Division comes into force, in accordance +with subsection 114(4) of the Canada Pension +Plan, on a day to be fixed by order of the Gover- +nor in Council. +DIVISION 29 +Medical Leave with Pay +2021, c. 27 +An Act to amend the Criminal Code +and the Canada Labour Code +423 (1) Subsection 7(1) of An Act to amend the +Criminal Code and the Canada Labour Code is +amended by replacing the subsection 239(1.2) that +it enacts with the following: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 28 Canada Pension Plan +Amendments to the Act +Sections 421-423 + +Page 413 +Leave with pay +(1.2) Subject to subsection (1.21) and the regulations, an +employee earns, as of the first day on which this subsec- +tion applies to the employee, +(a) after completing 30 days of continuous employ- +ment with an employer, three days of medical leave of +absence with pay; and +(b) following the period of 30 days referred to in para- +graph (a), at the beginning of each month after com- +pleting one month of continuous employment with the +employer, one day of medical leave of absence with +pay. +Maximum of 10 days +(1.21) Subject to the regulations, an employee is entitled +to earn up to 10 days of medical leave of absence with pay +in a calendar year. +(2) Subsection 7(1) of the Act is amended by re- +placing the subsection 239(1.4) that it enacts with +the following: +Annual carry forward +(1.4) Subject to the regulations, each day of medical +leave of absence with pay that an employee does not take +in a calendar year is to be carried forward to January 1 of +the following calendar year and decreases, by one, the +maximum number of days that can be earned in that cal- +endar year under subsection (1.21). +(3) Subsection 7(1) of the Act is amended by re- +placing the subsections 239(1.6) and (2) that it en- +acts with the following: +Certificate +(2) The employer may, in writing and no later than 15 +days after the return to work of an employee who has +taken a medical leave of absence of at least five consecu- +tive days, require the employee to provide a certificate is- +sued by a health care practitioner certifying that the em- +ployee was incapable of working for the period of their +medical leave of absence. +(4) Subsection 7(2) of the Act is amended by +amending the subsection 239(13) that it enacts by +striking out “and” at the end of paragraph (a) +and by replacing paragraph (b) with the follow- +ing: +(b) modifying subsection (1.2), (1.21) or (1.4) if, in the +opinion of the Governor in Council, employees or +classes of employees will, despite the modification, +earn periods of medical leave of absence with pay that +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 29 Medical Leave with Pay +An Act to amend the Criminal Code and the Canada Labour Code +Section +423 + +Page 414 +are substantially equivalent to the period provided for +in subsection (1.21); and +(c) providing for employees or classes of employees to +earn periods of medical leave of absence with pay oth- +er than in accordance with subsection (1.2) if, in the +opinion of the Governor in Council, the periods of +medical leave of absence with pay are substantially +equivalent to the period provided for in subsection +(1.21). +(5) Subsection 7(2) of the Act is amended by +adding, after the subsection 239(13) that it enacts, +the following: +Application of section 189 +(14) Section 189 applies for the purposes of this Division. +424 The Act is amended by adding the following +after section 7: +7.1 The Act is amended by adding the following +after section 239: +Application — 100 or more employees +239.001 The provisions of this Division respecting the +medical leave of absence with pay apply to an employer +and its employees beginning on the first day on which, as +of the day on which this section comes into force, the em- +ployer has 100 or more employees, even if the number of +employees falls below 100 after that first day. +425 (1) Subsection 8(2) of the Act is replaced by +the following: +Order in council or December 1, 2022 +(2) Sections 6 and 7 come into force on a day to be +fixed by order of the Governor in Council, but no +later than December 1, 2022. +(2) Section 8 of the Act is amended by adding the +following after subsection (3): +Order in council +(4) Section 7.1 comes into force on a day to be +fixed by order of the Governor in Council. +R.S., c. L-2 +Related Amendment to the Canada +Labour Code +426 Section 239.001 of the Canada Labour Code is +repealed. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 29 Medical Leave with Pay +An Act to amend the Criminal Code and the Canada Labour Code +Sections 423-426 + +Page 415 +Transitional Provision +Personal leave +427 Paragraph 206.6(1)(a) of the Canada Labour +Code, as it read immediately before the day on +which section 6 of An Act to amend the Criminal +Code and the Canada Labour Code, chapter 27 of +the Statutes of Canada, 2021, comes into force, +continues to apply to every employer and its em- +ployees to which section 239.001 of the Canada +Labour Code, as enacted by section 7.1 of An Act +to amend the Criminal Code and the Canada +Labour Code, chapter 27 of the Statutes of +Canada, 2021, does not apply, until the day on +which section 426 of this Act comes into force. +Coordinating Amendments +2021, c. 27 +428 (1) In this section, other Act means An Act to +amend the Criminal Code and the Canada +Labour Code, chapter 27 of the Statutes of +Canada, 2021. +(2) If section 7 of the other Act comes into force +before section 423 of this Act, then +(a) sections 423 to 427 and 429 of this Act are +deemed never to have come into force and are +repealed; +(b) subsection 239(1.2) of the Canada Labour +Code is replaced by the following: +Leave with pay +(1.2) Subject to subsection (1.21) and the regulations, an +employee earns, as of the day on which this subsection +comes into force, +(a) after completing 30 days of continuous employ- +ment with an employer, three days of medical leave of +absence with pay; and +(b) following the period of 30 days referred to in para- +graph (a), at the beginning of each month after com- +pleting one month of continuous employment with the +employer, one day of medical leave of absence with +pay. +Maximum of 10 days +(1.21) Subject to the regulations, an employee is entitled +to earn up to 10 days of medical leave of absence with pay +in a calendar year. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 29 Medical Leave with Pay +Transitional Provision +Sections 427-428 + +Page 416 +(c) subsection 239(1.4) of the Canada Labour +Code is replaced by the following: +Annual carry forward +(1.4) Subject to the regulations, each day of medical +leave of absence with pay that an employee does not take +in a calendar year is to be carried forward to January 1 of +the following calendar year and decreases, by one, the +maximum number of days that can be earned in that cal- +endar year under subsection (1.21). +(d) subsections 239(1.6) and (2) of the Canada +Labour Code are replaced by the following: +Certificate +(2) The employer may, in writing and no later than 15 +days after the return to work of an employee who has +taken a medical leave of absence of at least five consecu- +tive days, require the employee to provide a certificate is- +sued by a health care practitioner certifying that the em- +ployee was incapable of working for the period of their +medical leave of absence. +(e) subsection 239(13) of the Canada Labour +Code is amended by striking out “and” at the +end of paragraph (a) and by replacing para- +graph (b) with the following: +(b) modifying subsection (1.2), (1.21) or (1.4) if, in the +opinion of the Governor in Council, employees or +classes of employees will, despite the modification, +earn periods of medical leave of absence with pay that +are substantially equivalent to the period provided for +in subsection (1.21); and +(c) providing for employees or classes of employees to +earn periods of medical leave of absence with pay oth- +er than in accordance with subsection (1.2) if, in the +opinion of the Governor in Council, the periods of +medical leave of absence with pay are substantially +equivalent to the period provided for in subsection +(1.21). +(f) section 239 of the Canada Labour Code is +amended by adding the following after subsec- +tion (13): +Application of section 189 +(14) Section 189 applies for the purposes of this Division. +(3) If section 423 of this Act comes into force on +the same day as section 7 of the other Act, then +that section 423 is deemed to have come into +force before that section 7. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 29 Medical Leave with Pay +Coordinating Amendments +Section +428 + +Page 417 +Coming into Force +Order in council +429 Section 426 comes into force on a day to be +fixed by order of the Governor in Council. +DIVISION 30 +R.S., c. C-44; 1994, c. 24, s. 1(F) +Canada Business Corporations Act +Amendments to the Act +430 Subsection 21.1(7) of the Canada Business +Corporations Act is replaced by the following: +Non-application +(7) This section does not apply to a corporation +(a) that is a reporting issuer or an émetteur assujetti +under an Act of the legislature of a province relating to +the regulation of securities; +(b) any of the securities of which are listed and posted +for trading on a designated stock exchange, as de- +fined in subsection 248(1) of the Income Tax Act; or +(c) that is a member of a prescribed class. +431 The Act is amended by adding the following +after section 21.2: +Sending of information to Director +21.21 (1) A corporation to which section 21.1 applies +shall +(a) on an annual basis, send to the Director the infor- +mation in its register of individuals with significant +control over the corporation, in the form and within +the period that the Director fixes; and +(b) within 15 days after the day on which it records in- +formation under subsection 21.1(3), send the informa- +tion to the Director, in the form that the Director fixes. +Sending of information — certificates issued +(2) On or after the date shown on a certificate referred to +in section 8, subsection 185(4) or 187(4), a corporation to +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 29 Medical Leave with Pay +Coming into Force +Sections 429-431 + +Page 418 +which section 21.1 applies shall send to the Director the +information referred to in paragraphs 21.1(1)(a) to (f) in +relation to individuals with significant control over the +corporation, in the form and within the period that the +Director fixes. +Period for keeping and producing information +(3) The Director is not required to keep or produce any +information received under subsection (1) or (2) after the +end of the six-year period following the day on which it is +received. +432 The Act is amended by adding the following +after section 21.3: +Provision of information by Director +21.301 The Director may provide all or part of the infor- +mation received under section 21.21 to an investigative +body referred to in subsection 21.31(2), the Financial +Transactions and Reports Analysis Centre of Canada or +any prescribed entity. +433 Section 266 of the Act is replaced by the fol- +lowing: +Inspection +266 (1) A person who has paid the required fee is enti- +tled during usual business hours to examine a document +required by this Act or the regulations to be sent to the +Director, except any information sent under section 21.21 +and a report sent to the Director under subsection 230(2), +and to make copies of or extracts from it. +Copies or extracts +(2) The Director shall furnish any person with a copy, ex- +tract, certified copy or certified extract of a document re- +quired by this Act or the regulations to be sent to the Di- +rector, except any information sent under section 21.21 +and a report sent under subsection 230(2). +Coordinating Amendment +2018, c. 8 +434 On the first day on which both section 44 of +An Act to amend the Canada Business Corpora- +tions Act, the Canada Cooperatives Act, the +Canada Not-for-profit Corporations Act and the +Competition Act, chapter 8 of the Statutes of +Canada, 2018, and section 433 of this Act are in +force, section 266 of the Canada Business Corpo- +rations Act is replaced by the following: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 30 Canada Business Corporations Act +Amendments to the Act +Sections 431-434 + +Page 419 +Inspection +266 (1) A person who has paid the required fee is enti- +tled during usual business hours to examine and make +copies of or take extracts from a document, except any +information sent under section 21.21 and a report sent to +the Director under subsection 230(2), that is required to +be sent to the Director under this Act or that was re- +quired to be sent to a person performing a similar func- +tion under prior legislation. +Copies or extracts +(2) The Director shall, on request, provide any person +with a copy, extract, certified copy or certified extract of a +document that may be examined under subsection (1). +Coming into Force +Order in council +435 This Division, except sections 430 and 434, +comes into force on a day to be fixed by order of +the Governor in Council. +DIVISION 31 +Economic Sanctions +1992, c. 17 +Special Economic Measures Act +436 The definition property in section 2 of the +Special Economic Measures Act is replaced by +the following: +property means any type of property, whether real or +personal or immovable or movable, or tangible or intan- +gible or corporeal or incorporeal, and includes money, +funds, currency, digital assets and virtual currency; +(bien) +437 The Act is amended by adding the following +after section 3: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 30 Canada Business Corporations Act +Coordinating Amendment +Sections 434-437 + +Page 420 +Purpose +Purpose of Act +3.1 The purpose of this Act is to enable the Government +of Canada to take economic measures against certain +persons in circumstances where an international organi- +zation of states or association of states of which Canada +is a member calls on its members to do so, a grave breach +of international peace and security has occurred, gross +and systematic human rights violations have been com- +mitted in a foreign state or acts of significant corruption +involving a national of a foreign state have been commit- +ted. +438 (1) Subsection 4(1) of the Act is replaced by +the following: +Orders and regulations +4 (1) The Governor in Council may, if the Governor in +Council is of the opinion that any of the circumstances +described in subsection (1.1) has occurred, +(a) make any orders or regulations with respect to the +restriction or prohibition of any of the activities re- +ferred to in subsection (2) in relation to a foreign state +that the Governor in Council considers necessary; and +(b) by order, cause to be seized or restrained in the +manner set out in the order any property situated in +Canada that is owned — or that is held or controlled, +directly or indirectly — by +(i) a foreign state, +(ii) any person in that foreign state, or +(iii) a national of that foreign state who does not +ordinarily reside in Canada. +(2) Paragraph 4(2)(a) of the Act is replaced by the +following: +(a) any dealing by any person in Canada or Canadian +outside Canada in any property, wherever situated, +that is owned — or that is held or controlled, directly +or indirectly — by that foreign state, any person in that +foreign state, or a national of that foreign state who +does not ordinarily reside in Canada; +(3) Subsections 4(4) and (5) of the Act are re- +placed by the following: +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 31 Economic Sanctions +Special Economic Measures Act +Sections 437-438 + +Page 421 +Order authorizing Minister +(4) The Governor in Council may, by order, authorize the +Minister to +(a) issue to any person in Canada or Canadian outside +Canada a permit to carry out a specified activity or +transaction, or class of activity or transaction, that is +restricted or prohibited under this Act or any order or +regulations made under this Act; or +(b) issue a general permit allowing any person in +Canada or Canadian outside Canada to carry out a +specified activity or transaction, or class of activity or +transaction, that is restricted or prohibited under this +Act or any order or regulations made under this Act. +Ministerial permit +(5) The Minister may issue a permit or general permit, +subject to any terms and conditions that are, in the opin- +ion of the Minister, consistent with this Act and any or- +der or regulations made under this Act. +439 Section 5 of the Act is replaced by the follow- +ing: +Costs +5 Any costs incurred by or on behalf of Her Majesty in +right of Canada in relation to the seizure or restraint of +property under an order made under paragraph 4(1)(b) +or the disposal of property forfeited under section 5.4 are +the liability of the owner of the property and constitute a +debt due to Her Majesty in right of Canada that may be +recovered in any court of competent jurisdiction. +Application for review +5.1 (1) A person whose property is the subject of an or- +der made under paragraph 4(1)(b) may, unless the prop- +erty is the subject of a forfeiture order, apply at any time +to the Minister in writing to request that the property +cease being the subject of the order made under that +paragraph. +Reasonable grounds +(2) On receipt of an application, the Minister must de- +cide whether there are reasonable grounds to recom- +mend to the Governor in Council that the property cease +to be the subject of the order. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 31 Economic Sanctions +Special Economic Measures Act +Sections 438-439 + +Page 422 +Ranking +5.2 All secured and unsecured rights and interests in +any property that is the subject of an order made under +paragraph 4(1)(b) that are held by a person are entitled +to the same ranking that they would have been entitled to +had the order not been made, unless +(a) the person is +(i) the foreign state identified in the order, +(ii) a person in that state, or +(iii) a national of that state who does not ordinarily +reside in Canada; or +(b) the property is forfeited to Her Majesty in right of +Canada under section 5.4. +Forfeiture Orders +Definitions +5.3 The following definitions apply in sections 5.4 to 5.6. +judge means a judge of a superior court of the province +where property described in an order made under para- +graph 4(1)(b) is situated. (juge) +Minister means the Minister responsible under section 6 +for the administration of an order made under paragraph +4(1)(b). (ministre) +Forfeiture +5.4 (1) On application by the Minister, a judge shall or- +der that the property that is the subject of the application +be forfeited to Her Majesty in right of Canada if the judge +determines, based on the evidence presented, that the +property +(a) is described in an order made under paragraph +4(1)(b); and +(b) is owned by the person referred to in that order or +is held or controlled, directly or indirectly, by that per- +son. +Notice +(2) Before making the order in relation to the property, +the court shall require notice to be given to any person +who, in the court’s opinion, appears to have an interest in +or right to the property, and the court may hear any such +person. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 31 Economic Sanctions +Special Economic Measures Act +Section +439 + +Page 423 +Manner of giving notice +(3) The notice shall +(a) be given in the manner that the court directs or +that may be specified in the rules of the court; +(b) specify the period that the court considers reason- +able or that may be set out in the rules of the court +during which a person may, before the order in rela- +tion to the property is made, make an application to +the court asserting their interest in or right to the +property; and +(c) set out a description of the property. +Application by person +(4) Any person — other than a person referred to in any +of subparagraphs 5.2(a)(i) to (iii) — who claims an inter- +est in or right to property that is forfeited to Her Majesty +under subsection (1) may, within 30 days after the day on +which the property is forfeited, apply in writing to a +judge for an order declaring that their interest or right is +not affected by the forfeiture, declaring the nature and +extent of the interest or right and directing the Minister +to pay to the person an amount equal to the value of their +interest or right. +Not a Crown corporation +5.5 If the property that is the subject of a forfeiture or- +der consists of all of the shares of a corporation, the cor- +poration is deemed not to be a Crown corporation as de- +fined in subsection 83(1) of the Financial Administration +Act. +Payment out of Proceeds Account +5.6 After consulting with the Minister of Finance and +the Minister of Foreign Affairs, the Minister may — at the +times and in the manner, and on any terms and condi- +tions, that the Minister considers appropriate — pay out +of the Proceeds Account, as defined in section 2 of the +Seized Property Management Act, amounts not exceed- +ing the net proceeds from the disposition of property for- +feited under section 5.4, but only for any of the following +purposes: +(a) the reconstruction of a foreign state adversely af- +fected by a grave breach of international peace and se- +curity; +(b) the restoration of international peace and security; +and +(c) the compensation of victims of a grave breach of +international peace and security, gross and systematic +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 31 Economic Sanctions +Special Economic Measures Act +Section +439 + +Page 424 +human rights violations or acts of significant corrup- +tion. +440 Subsection 6(1) of the French version of the +Act is replaced by the following: +Ministre +6 (1) Sous réserve du paragraphe (2), le ministre des Af- +faires étrangères est chargé de l’exécution et du contrôle +d’application de la présente loi. +441 The Act is amended by adding the following +after section 6: +Sharing of information +6.1 The following persons may assist the Minister in +matters relating to the making, administration or en- +forcement of an order or regulation referred to in subsec- +tion 4(1) and, for that purpose, may collect information +from and disclose information to each other: +(a) the Minister of Foreign Affairs; +(b) the Minister of Finance; +(c) the Minister of Public Works and Government Ser- +vices; +(d) the Minister of Public Safety and Emergency Pre- +paredness; +(e) the Director of the Canadian Security Intelligence +Service; +(f) the Chief of the Communications Security Estab- +lishment; +(g) the President of the Canada Border Services Agen- +cy; and +(h) the Superintendent of Financial Institutions. +RCMP +6.2 (1) The Commissioner of the Royal Canadian +Mounted Police may assist the Minister in matters relat- +ed to the making of an order under paragraph 4(1)(b), +the seizure or restraint of any property that is the subject +of such an order or the making of an application for for- +feiture of the property under section 5.4 and, for that +purpose, may collect information from and disclose in- +formation to the persons referred to in section 6.1. +For greater certainty +(2) For greater certainty, nothing in subsection (1) is to +be construed as affecting the powers of a peace officer +that are conferred under legislation or the common law. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 31 Economic Sanctions +Special Economic Measures Act +Sections 439-441 + +Page 425 +Provision of information +6.3 (1) The Minister of Foreign Affairs may require any +person to provide to that Minister any information that +that Minister believes on reasonable grounds is relevant +for the purposes of the making, administration or en- +forcement of an order or regulation referred to in subsec- +tion 4(1). +Duty to comply +(2) Every person who is required to provide information +under subsection (1) shall comply with the requirement +within the time and in the form and manner specified by +that Minister. +442 Subsection 7(1) of the Act is replaced by the +following: +Tabling in Parliament +7 (1) Every order and regulation made under paragraph +4(1)(a) shall be laid before each House of Parliament by a +member of the Queen’s Privy Council for Canada within +five sitting days of that House after it is made. +443 The Act is amended by adding the following +after section 7: +Agreements +7.1 The Minister of Foreign Affairs may, with the ap- +proval of the Governor in Council, enter into an agree- +ment with the government of any foreign state respecting +the use by the foreign state, for any of the following pur- +poses, of amounts that may be paid out under section 5.6: +(a) the reconstruction of the foreign state adversely af- +fected by a grave breach of international peace and se- +curity; +(b) the restoration of international peace and security; +and +(c) the compensation of victims of a grave breach of +international peace and security, gross and systematic +human rights violations or acts of significant corrup- +tion. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 31 Economic Sanctions +Special Economic Measures Act +Sections 441-443 + +Page 426 +2017, c. 21 +Justice for Victims of Corrupt +Foreign Officials Act (Sergei +Magnitsky Law) +444 (1) The definition Minister in section 2 of the +Justice for Victims of Corrupt Foreign Officials +Act (Sergei Magnitsky Law) is repealed. +(2) Section 2 of the Act is amended by adding the +following in alphabetical order: +property means any type of property, whether real or +personal or immovable or movable, or tangible or intan- +gible or corporeal or incorporeal, and includes money, +funds, currency, digital assets and virtual currency. +(bien) +445 The Act is amended by adding the following +after section 2: +Minister +2.1 (1) Subject to subsection (2), the Minister of Foreign +Affairs is responsible for the administration and enforce- +ment of this Act. +Designation +(2) The Governor in Council may, by order, designate +one or more Ministers of the Crown to discharge any re- +sponsibilities that the Governor in Council may specify +with respect to the administration or enforcement of any +of the provisions of this Act or any order or regulations +made under this Act. +446 Paragraph 4(1)(b) of the Act is replaced by +the following: +(b) by order, cause to be seized or restrained in the +manner set out in the order any property situated in +Canada that is owned — or that is held or controlled, +directly or indirectly — by the foreign national. +447 Section 5 of the Act is replaced by the follow- +ing: +Forfeiture Orders +Definitions +4.1 The following definitions apply in sections 4.2 to 4.4. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 31 Economic Sanctions +Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law) +Sections 444-447 + +Page 427 +judge means a judge of a superior court of the province +where property described in an order made under para- +graph 4(1)(b) is situated. (juge) +Minister means the Minister responsible under section +2.1 for the administration of an order made under para- +graph 4(1)(b). (ministre) +Forfeiture +4.2 (1) On application by the Minister, a judge must or- +der that the property that is the subject of the application +be forfeited to Her Majesty in right of Canada if the judge +determines, based on the evidence presented, that the +property +(a) is described in an order made under paragraph +4(1)(b); and +(b) is owned by the foreign national referred to in that +order or is held or controlled, directly or indirectly, by +that foreign national. +Notice +(2) Before making the order in relation to the property, +the court must require notice to be given to any person +who, in the court’s opinion, appears to have an interest in +or right to the property, and the court may hear any such +person. +Manner of giving notice +(3) The notice must +(a) be given in the manner that the court directs or +that may be specified in the rules of the court; +(b) specify the period that the court considers reason- +able or that may be set out in the rules of the court +during which a person may, before the order in rela- +tion to the property is made, make an application to +the court asserting their interest in or right to the +property; and +(c) set out a description of the property. +Application by person +(4) Any person — other than a foreign national described +in any of paragraphs 4(2)(a) to (d) — who claims an inter- +est in or right to property that is forfeited to Her Majesty +under subsection (1) may, within 30 days after the day on +which the property is forfeited, apply in writing to a +judge for an order declaring that their interest or right is +not affected by the forfeiture, declaring the nature and +extent of the interest or right and directing the Minister +to pay to the person an amount equal to the value of their +interest or right. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 31 Economic Sanctions +Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law) +Section +447 + +Page 428 +Not a Crown corporation +4.3 If the property that is the subject of a forfeiture or- +der consists of all of the shares of a corporation, the cor- +poration is deemed not to be a Crown corporation as de- +fined in subsection 83(1) of the Financial Administration +Act. +Payment out of Proceeds Account +4.4 After consulting with the Minister of Finance and +the Minister of Foreign Affairs, the Minister may — at the +times and in the manner, and on any terms and condi- +tions, that the Minister considers appropriate — pay out +of the Proceeds Account, as defined in section 2 of the +Seized Property Management Act, amounts not exceed- +ing the net proceeds from the disposition of property for- +feited under section 4.2, but only to compensate victims +of the circumstances described in subsection 4(2). +Tabling in Parliament +Order or regulation +5 A copy of each order or regulation made under para- +graph 4(1)(a) must be tabled in each House of Parliament +within 15 days after it is made. It may be sent to the Clerk +of the House if the House is not sitting. +448 The Act is amended by adding the following +after section 7: +Sharing of information +7.1 The following persons may assist the Minister in +matters relating to the making, administration or en- +forcement of an order or regulation referred to in subsec- +tion 4(1) and, for that purpose, may collect information +from and disclose information to each other: +(a) the Minister of Foreign Affairs; +(b) the Minister of Finance; +(c) the Minister of Public Works and Government Ser- +vices; +(d) the Minister of Public Safety and Emergency Pre- +paredness; +(e) the Director of the Canadian Security Intelligence +Service; +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 31 Economic Sanctions +Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law) +Sections 447-448 + +Page 429 +(f) the Chief of the Communications Security Estab- +lishment; +(g) the President of the Canada Border Services Agen- +cy; and +(h) the Superintendent of Financial Institutions. +RCMP +7.2 (1) The Commissioner of the Royal Canadian +Mounted Police may assist the Minister in matters relat- +ed to the making of an order under paragraph 4(1)(b), +the seizure or restraint of any property that is the subject +of such an order or the making of an application for for- +feiture of the property under section 4.2 and, for that +purpose, may collect information from and disclose in- +formation to the persons referred to in section 7.1. +For greater certainty +(2) For greater certainty, nothing in subsection (1) is to +be construed as affecting the powers of a peace officer +that are conferred under legislation or the common law. +Provision of information +7.3 (1) The Minister of Foreign Affairs may require any +person to provide to that Minister any information that +that Minister believes on reasonable grounds is relevant +for the purposes of the making, administration or en- +forcement of an order or regulation referred to in subsec- +tion 4(1). +Duty to comply +(2) Every person who is required to provide information +under subsection (1) must comply with the requirement +within the time and in the form and manner specified by +that Minister. +449 Subsections 8(1) and (2) of the Act are re- +placed by the following: +Application +8 (1) A foreign national who is the subject of an order or +regulation made under paragraph 4(1)(a) may apply in +writing to the Minister to cease being the subject of the +order or regulation. +Property +(1.1) A foreign national whose property is the subject of +an order made under paragraph 4(1)(b) may, unless the +property is the subject of a forfeiture order, apply at any +time in writing to the Minister to request that the proper- +ty cease being the subject of the order made under that +paragraph. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 31 Economic Sanctions +Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law) +Sections 448-449 + +Page 430 +Reasonable grounds +(2) On receipt of the application, the Minister must de- +cide whether there are reasonable grounds to recom- +mend to the Governor in Council that the order or regu- +lation be amended or repealed, as the case may be, so +that the applicant or their property ceases to be the sub- +ject of it. +450 Section 13 of the Act is replaced by the fol- +lowing: +Ranking +13 All secured and unsecured rights and interests in any +property that is the subject of an order made under para- +graph 4(1)(b) that are held by a person are entitled to the +same ranking that they would have been entitled to had +the order not been made, unless +(a) the person is a foreign national described in any of +paragraphs 4(2)(a) to (d); or +(b) the property is forfeited to Her Majesty in right of +Canada under section 4.2. +Costs +13.1 Any costs incurred by or on behalf of Her Majesty +in right of Canada in relation to the seizure or restraint of +property under an order made under paragraph 4(1)(b) +or the disposal of property forfeited under section 4.2 are +the liability of the owner of the property and constitute a +debt due to Her Majesty in right of Canada that may be +recovered in any court of competent jurisdiction. +Agreements +13.2 The Minister of Foreign Affairs may, with the ap- +proval of the Governor in Council, enter into an agree- +ment with a person respecting the use by the person, for +the compensation of victims of the circumstances de- +scribed in subsection 4(2), of amounts that may be paid +out under section 4.4. +1993, c. 37 +Seized Property Management Act +451 Subsection 13(3) of the Seized Property +Management Act is amended by striking out +“and” at the end of paragraph (b) and by adding +the following after paragraph (c): +(d) amounts paid under section 5.6 of the Special Eco- +nomic Measures Act; and +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 31 Economic Sanctions +Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law) +Sections 449-451 + +Page 431 +(e) amounts paid under section 4.4 of the Justice for +Victims of Corrupt Foreign Officials Act (Sergei Mag- +nitsky Law). +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +PART 5 Various Measures +DIVISION 31 Economic Sanctions +Seized Property Management Act +Section +451 + +Page 432 +SCHEDULE 1 +(Section 80) +SCHEDULE 8 +(Sections 158.57, 158.6, 158.61, 218.2, 233.2, 234.2, 237 and +238.01) +Duty on Vaping Products +1 Vaping products that are vaping devices that contain vap- +ing substances or that are vaping substances in immediate +containers: for each vaping device or immediate container of +vaping substance +(a) if the vaping substance is in liquid form, the amount +equal to the total of +(i) for the first 10 millilitres of vaping substance in the +vaping device or immediate container, $1.00 per 2 +millilitres of vaping substance or fraction thereof, and +(ii) for any additional amount of vaping substance in +the vaping device or immediate container, $1.00 per 10 +millilitres of vaping substance or fraction thereof; and +(b) if the vaping substance is in solid form, the amount +equal to the total of +(i) for the first 10 grams of vaping substance in the vap- +ing device or immediate container, $1.00 per 2 grams of +vaping substance or fraction thereof, and +(ii) for any additional amount of vaping substance in +the vaping device or immediate container, $1.00 per 10 +grams of vaping substance or fraction thereof. +2 Vaping products that are vaping substances not in any vap- +ing device or immediate container: +(a) if the vaping substance is in liquid form, the amount +equal to the total of +(i) for the first 10 millilitres of vaping substance, $1.00 +per 2 millilitres of vaping substance or fraction thereof, +and +(ii) for +any +additional +amount +of +vaping +sub- +stance, $1.00 per 10 millilitres of vaping substance or +fraction thereof; and +(b) if the vaping substance is in solid form, the amount +equal to the total of +(i) for the first 10 grams of vaping substance, $1.00 per +2 grams of vaping substance or fraction thereof, and +(ii) for +any +additional +amount +of +vaping +sub- +stance, $1.00 per 10 grams of vaping substance or frac- +tion thereof. +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +SCHEDULE 1 + +Page 433 +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +SCHEDULE 1 + +Page 434 +SCHEDULE 2 +(Section 135) +SCHEDULE +(Subsections 10(3) and 154(2)) +Remote Communities — +Qualifying Flight +Ontario +Attawapiskat First Nation +Bearskin Lake First Nation +Cat Lake First Nation +Deer Lake First Nation +Eabametoong First Nation +Fort Albany First Nation +Fort Severn First Nation +Kasabonika Lake First Nation +Kashechewan First Nation +Keewaywin First Nation +Kingfisher First Nation +Kitchenuhmaykoosib Inninuwug First Nation (Big Trout Lake +First Nation) +Marten Falls First Nation +Muskrat Dam Lake First Nation +Neskantaga First Nation +Nibinamik First Nation (Summer Beaver Band) +North Caribou Lake First Nation (Round Lake First Nation) +North Spirit Lake First Nation +Peawanuck +Pikangikum First Nation +Poplar Hill First Nation +Sachigo Lake First Nation +Sandy Lake First Nation +Slate Falls First Nation +Wapekeka First Nation +Webequie First Nation +Wunnumin Lake First Nation +Quebec +Akulivik +Aupaluk +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +SCHEDULE 2 + +Page 435 +Chevery +Chisasibi +Eastmain River +Îles-de-la-Madeleine +Inukjuak +Ivujivik +Kangiqsualujjuaq +Kangiqsujuaq +Kangirsuk +Kuujjuaq +Kuujjuarapik +La Romaine +La Tabatière +Port-Menier +Puvirnituq +Quaqtaq +Saint-Augustin +Salluit +Schefferville +Tasiujaq +Tête-à-La-Baleine +Umiujaq +Waskaganish +Wemindji +Manitoba +Berens River +Brochet +Churchill +Cross Lake +Elk Island +God’s Lake Narrows +God’s River +Island Lake +Lac Brochet +Little Grand Rapids +Norway House +Oxford House +Pauingassi +Poplar River First Nation +Pukatawagan +Red Sucker Lake +Shamattawa +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +SCHEDULE 2 + +Page 436 +South Indian Lake +St. Theresa Point +Tadoule Lake +York Factory First Nation +British Columbia +Ahousaht +Alert Bay +Bella Bella +Bella Coola +Dawson’s Landing +Dease Lake +Echo Bay +Ehattesaht +Fort Nelson +Fort Ware +Hartley Bay +Hot Springs Cove +Iskut +Kingcome Village +Kitasoo +Kitkatla +Klemtu +Kyuquot +Masset +Minstrel Island +Ocean Falls +Oona River +Port Simpson (Lax Kw’Alaams) +Sandspit +Sullivan Bay +Telegraph Creek +Tsay Keh +Uclucje/Ucluelet +Wuikinuxv Village +Yuquot +Saskatchewan +Camsell Portage +Fond-du-Lac +Stony Rapids +Uranium City +Wollaston Lake +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +SCHEDULE 2 + +Page 437 +Alberta +Chipewyan Lake +Fort Chipewyan +Fox Lake +Newfoundland and Labrador +Black Tickle +Hopedale +Makkovik +Nain +Natuashish +Postville +Rigolet +Williams Harbour +Yukon +Beaver Creek +Burwash Landing +Carcross +Carmacks +Dawson +Eagle Plains +Faro +Fort Selkirk +Keno +Mayo +Old Crow +Pelly Crossing +Ross River +Watson Lake +Whitehorse +Northwest Territories +Aklavik +Colville Lake +Deline +Fort Good Hope +Fort McPherson +Fort Simpson +Fort Smith +Gamèti +Hay River +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +SCHEDULE 2 + +Page 438 +Inuvik +Lutselk’e +Nahanni Butte +Norman Wells +Paulatuk +Sachs Harbour +Sambaa K’e +Tuktoyaktuk +Tulita +Ulukhaktok +Wekweeti +Whatì +Wrigley +Nunavut +Arctic Bay +Arviat +Baker Lake +Cambridge Bay +Chesterfield Inlet +Clyde River +Coral Harbour +Gjoa Haven +Grise Fiord +Hall Beach (Sanirajak) +Igloolik +Iqaluit +Kimmirut +Kinngait +Kugaaruk +Kuglutuk +Naujaat +Pangnirtung +Pond Inlet +Qikiqtarjuaq +Rankin Inlet +Resolute +Sanikiluaq +Taloyoak +Whale Cove +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +SCHEDULE 2 + +Page 439 +SCHEDULE 3 +(Section 409) +SCHEDULE V +(Subsection 12(2.3)) +Table of Weeks of Benefits — S +Reg +Number of hours +of insurable +employment in +qualifying period +6% and +under +More than +6% but not +more than +7% +More than +7% but not +more than +8% +More than +8% but not +more than +9% +More than +9% but not +more than +10% +M +10 +m +11 +420 - 454 +455 - 489 +490 - 524 +525 - 559 +560 - 594 +25 +595 - 629 +23 +25 +630 - 664 +22 +24 +26 +665 - 699 +20 +22 +24 +26 +700 - 734 +19 +21 +23 +25 +27 +735 - 769 +19 +21 +23 +25 +27 +770 - 804 +20 +22 +24 +26 +28 +805 - 839 +20 +22 +24 +26 +28 +840 - 874 +21 +23 +25 +27 +29 +875 - 909 +21 +23 +25 +27 +29 +910 - 944 +22 +24 +26 +28 +30 +945 - 979 +22 +24 +26 +28 +30 +980 - 1014 +23 +25 +27 +29 +31 +1015 - 1049 +23 +25 +27 +29 +31 +1050 - 1084 +24 +26 +28 +30 +32 +1085 - 1119 +24 +26 +28 +30 +32 +1120 - 1154 +25 +27 +29 +31 +33 +1155 - 1189 +25 +27 +29 +31 +33 +1190 - 1224 +26 +28 +30 +32 +34 +1225 - 1259 +26 +28 +30 +32 +34 +1260 - 1294 +27 +29 +31 +33 +35 +1295 - 1329 +27 +29 +31 +33 +35 +1330 - 1364 +28 +30 +32 +34 +36 +1365 - 1399 +28 +30 +32 +34 +36 +1400 - 1434 +29 +31 +33 +35 +37 +1435 - 1469 +30 +32 +34 +36 +38 +1470 - 1504 +31 +33 +35 +37 +39 +1505 - 1539 +32 +34 +36 +38 +40 +1540 - 1574 +33 +35 +37 +39 +41 +1575 - 1609 +34 +36 +38 +40 +42 +1610 - 1644 +35 +37 +39 +41 +43 +1645 - 1679 +36 +38 +40 +42 +44 +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +SCHEDULE 3 + +Page 440 +Reg +Number of hours +of insurable +employment in +qualifying period +6% and +under +More than +6% but not +more than +7% +More than +7% but not +more than +8% +More than +8% but not +more than +9% +More than +9% but not +more than +10% +M +10 +m +11 +1680 - 1714 +37 +39 +41 +43 +45 +1715 - 1749 +38 +40 +42 +44 +45 +1750 - 1784 +39 +41 +43 +45 +45 +1785 - 1819 +40 +42 +44 +45 +45 +1820 - +41 +43 +45 +45 +45 +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +SCHEDULE 3 + +Page 441 +ANNEXE 3 +(article 409) +ANNEXE V +(paragraphe 12(2.3)) +Tableau des semaines de presta +Ta +Nombre d’heures +d’emploi +assurable au +cours de la +période de +référence +6 % et +moins +Plus de 6 % +mais au +plus 7 % +Plus de 7 % +mais au +plus 8 % +Plus de 8 % +mais au +plus 9 % +Plus de 9 % +mais au +plus 10 % +P +10 +au +11 +420 - 454 +455 - 489 +490 - 524 +525 - 559 +560 - 594 +25 +595 - 629 +23 +25 +630 - 664 +22 +24 +26 +665 - 699 +20 +22 +24 +26 +700 - 734 +19 +21 +23 +25 +27 +735 - 769 +19 +21 +23 +25 +27 +770 - 804 +20 +22 +24 +26 +28 +805 - 839 +20 +22 +24 +26 +28 +840 - 874 +21 +23 +25 +27 +29 +875 - 909 +21 +23 +25 +27 +29 +910 - 944 +22 +24 +26 +28 +30 +945 - 979 +22 +24 +26 +28 +30 +980 - 1014 +23 +25 +27 +29 +31 +1015 - 1049 +23 +25 +27 +29 +31 +1050 - 1084 +24 +26 +28 +30 +32 +1085 - 1119 +24 +26 +28 +30 +32 +1120 - 1154 +25 +27 +29 +31 +33 +1155 - 1189 +25 +27 +29 +31 +33 +1190 - 1224 +26 +28 +30 +32 +34 +1225 - 1259 +26 +28 +30 +32 +34 +1260 - 1294 +27 +29 +31 +33 +35 +1295 - 1329 +27 +29 +31 +33 +35 +1330 - 1364 +28 +30 +32 +34 +36 +1365 - 1399 +28 +30 +32 +34 +36 +1400 - 1434 +29 +31 +33 +35 +37 +1435 - 1469 +30 +32 +34 +36 +38 +1470 - 1504 +31 +33 +35 +37 +39 +1505 - 1539 +32 +34 +36 +38 +40 +1540 - 1574 +33 +35 +37 +39 +41 +1575 - 1609 +34 +36 +38 +40 +42 +1610 - 1644 +35 +37 +39 +41 +43 +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +SCHEDULE 3 (French) + +Page 442 +Ta +Nombre d’heures +d’emploi +assurable au +cours de la +période de +référence +6 % et +moins +Plus de 6 % +mais au +plus 7 % +Plus de 7 % +mais au +plus 8 % +Plus de 8 % +mais au +plus 9 % +Plus de 9 % +mais au +plus 10 % +P +10 +au +11 +1645 - 1679 +36 +38 +40 +42 +44 +1680 - 1714 +37 +39 +41 +43 +45 +1715 - 1749 +38 +40 +42 +44 +45 +1750 - 1784 +39 +41 +43 +45 +45 +1785 - 1819 +40 +42 +44 +45 +45 +1820 - +41 +43 +45 +45 +45 +Published under authority of the Speaker of the House of Commons +2021-2022 +Chapter 10: Budget Implementation Act, 2022, No. 1 +SCHEDULE 3 (French) + +Page 443 + +Page 444 +Available on the House of Commons website +Disponible sur le site Web de la Chambre des com +