diff --git "a/task6_model_deployment/assets/C-32_4.txt" "b/task6_model_deployment/assets/C-32_4.txt" new file mode 100644--- /dev/null +++ "b/task6_model_deployment/assets/C-32_4.txt" @@ -0,0 +1,8514 @@ +Page 1 +First Session, Forty-fourth Parliament, +70-71 Elizabeth II – 1 Charles III, 2021-2022 +STATUTES OF CANADA 2022 +CHAPTER 19 +An Act to implement certain provisions of +the fall economic statement tabled in +Parliament on November 3, 2022 and certain +provisions of the budget tabled in Parliament +on April 7, 2022 +ASSENTED TO +DECEMBER 15, 2022 +BILL C-32 + +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 +fall economic statement tabled in Parliament on November 3, +2022 and certain provisions of the budget tabled in Parliament +on April 7, 2022”. +SUMMARY +Part 1 implements certain measures in respect of the Income Tax +Act by +(a) providing that any gain on the disposition of a Canadian +housing unit within a one-year period of its acquisition is +treated as business income; +(b) introducing a Tax-Free First Home Savings Account; +(c) phasing out flow-through shares for oil, gas and coal ac- +tivities; +(d) introducing a new 30% Critical Mineral Exploration Tax +Credit for specified mineral exploration expenses incurred in +Canada and renounced to flow-through share investors; +(e) introducing the Canada Recovery Dividend under which +banks and life insurers’ groups pay a temporary one-time +15% tax on taxable income above $1 billion over five years; +(f) increasing the corporate income tax rate of banks and life +insurers’ groups by 1.5% on taxable income above $100 mil‐ +lion; +(g) providing additional reporting requirements for trusts; +(h) providing rules applicable to mutual fund trusts listed on +a designated stock exchange in Canada with respect to +amounts that are allocated to redeeming unitholders; +(i) providing the Minister of National Revenue with the dis- +cretion to decline to issue a certificate under section 116 of +the Income Tax Act in certain circumstances relating to the +administration and enforcement of the Underused Housing +Tax Act; +(j) doubling the First-Time Homebuyers’ Tax Credit; +(k) expanding the eligibility criteria for the Medical Expense +Tax Credit in respect of medical expenses incurred in Canada +related to surrogate mothers and donors and fees paid in +Canada to fertility clinics and donor banks; +(l) introducing the Multigenerational Home Renovation Tax +Credit; +(m) allowing access to the small business tax rate on a +phased-out basis up to taxable capital of $50 million; +Available on the House of Commons website at the following address: +www.ourcommons.ca +2021-2022 + +Page 3 +(n) modifying the computation of income as a result of the +adoption of a new international accounting standard for in- +surance contracts; +(o) introducing a new graduated disbursement quota rate for +charities; +(p) providing that the general anti-avoidance rules can apply +to transactions that affect tax attributes that have not yet +been used to reduce taxes; +(q) strengthening the rules on avoidance of tax debts; +(r) modifying the calculation of the taxes applicable to regis- +tered investments that hold property that is not a qualified in- +vestment; +(s) modifying the tax treatment of certain interest coupon +stripping arrangements that might otherwise be used to +avoid tax on cross-border interest payments; +(t) clarifying the applicable rules with respect to audits by +Canada Revenue Agency officials, including requiring taxpay- +ers to give reasonable assistance and to answer all proper +questions for tax purposes; and +(u) extending the capital cost allowance for clean energy and +the tax rate reduction for zero-emission technology manufac- +turers to include air-source heat pumps. +It also makes related and consequential amendments to the +Canada Deposit Insurance Corporation Act, the Excise Tax Act, +the Air Travellers Security Charge Act, the Excise Act, 2001, Part +1 of the Greenhouse Gas Pollution Pricing Act and the Income +Tax Regulations. +Part 2 amends the Excise Act, 2001 and other related texts in or- +der to implement changes to +(a) the federal excise duty frameworks for cannabis and oth- +er products by, among other things, +(i) permitting excise duty remittances for certain cannabis +licensees to be made on a quarterly rather than a monthly +basis, starting from the quarter that began on April 1, +2022, and +(ii) allowing the transfer of packaged, but unstamped, +cannabis products between licensed cannabis producers; +and +(b) the federal excise duty framework for vaping products in +relation to the markings, customs storage and excise duty lia- +bility of these products. +Part 3 amends the Underused Housing Tax Act to make amend- +ments of a technical or housekeeping nature. It also makes regu- +lations under that Act in order to, among other things, imple- +ment an exemption for certain vacation properties. +Division 1 of Part 4 authorizes the Minister of Finance to acquire +and hold on behalf of His Majesty in right of Canada non-voting +shares of a wholly-owned subsidiary of the Canada Develop- +ment Investment Corporation that is responsible for administer- +ing the Canada Growth Fund and to requisition the amounts for +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +SUMMARY + +Page 4 +the acquisition of those shares out of the Consolidated Revenue +Fund. +Division 2 of Part 4 amends the Bretton Woods and Related +Agreements Act to increase the maximum financial assistance +that may be provided in respect of foreign states. +Subdivision A of Division 3 of Part 4 enacts the Framework +Agreement on First Nation Land Management Act. +Subdivision B of Division 3 of Part 4 contains transitional provi- +sions in respect of the enactment of the Framework Agreement +on First Nation Land Management Act and makes consequential +amendments to other Acts. It also repeals the First Nations Land +Management Act. +Division 4 of Part 4 amends the Government Employees Com- +pensation Act in order to fulfil 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. +Division 5 of Part 4 amends the Canada Student Loans Act to +eliminate the accrual of interest on guaranteed student loans be- +ginning on April 1, 2023. +It also amends the Canada Student Financial Assistance Act to +eliminate the accrual of interest on student loans beginning on +April 1, 2023. +Finally, it amends the Apprentice Loans Act to eliminate the ac- +crual of interest on apprentice loans beginning on April 1, 2023 +and to clarify when the repayment of apprentice loans begins +during the interest suspension period from April 1, 2021 to +March 31, 2023. +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +SUMMARY + +Page 5 +TABLE OF PROVISIONS +An Act to implement certain provisions of the fall +economic statement tabled in Parliament on +November 3, 2022 and certain provisions of the +budget tabled in Parliament on April 7, 2022 +Short Title +Fall Economic Statement Implementation Act, 2022 +1 +PART 1 +Amendments to the Income Tax Act +and Other Legislation +2 +PART 2 +Amendments to the Excise Act, 2001 +and Other Related Texts +93 +PART 3 +Amendments to the Underused +Housing Tax Act and Making of +Related Regulations +113 +PART 4 +Various Measures +DIVISION 1 +Canada Growth Fund +118 +DIVISION 2 +Bretton Woods and Related Agreements Act +120 +DIVISION 3 +Framework Agreement on First Nation Land +Management Act +Enactment of Act +121 +2021-2022 + +Page 6 +An Act respecting the Framework +Agreement on First Nation Land +Management +Short Title +Framework Agreement on First Nation Land Manage- +ment Act +1 +Interpretation +Definitions +2 +Not a treaty +3 +Binding on His Majesty +4 +Framework Agreement +Force of law +5 +Framework Agreement prevails +6 +Publication +7 +Rights and Obligations of His Majesty +in Right of Canada +Transfer +8 +First Nation Lands Register +Register continued +9 +Regulations +10 +General Provisions +Judicial notice +11 +Notice +12 +Non-application of Statutory Instruments Act +13 +DIVISION 4 +Government Employees Compensation Act +144 +DIVISION 5 +Student Loans and Apprentice Loans +145 +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +TABLE OF PROVISIONS + +Page 7 +70-71 ELIZABETH II – 1 CHARLES III +CHAPTER 19 +An Act to implement certain provisions of the fall +economic statement tabled in Parliament on Novem- +ber 3, 2022 and certain provisions of the budget +tabled in Parliament on April 7, 2022 +[Assented to 15th December, 2022] +His 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 Fall Economic Statement +Implementation Act, 2022. +PART 1 +Amendments to the Income Tax +Act and Other Legislation +R.S., c. 1 (5th Supp.) +Income Tax Act +2 (1) Section 12 of the Income Tax Act is amend- +ed by adding the following after subsection (11): +Flipped property — deemed business +(12) For the purposes of this Act, if, absent this subsec- +tion and paragraph 40(2)(b), a taxpayer would have had a +gain from the disposition of a flipped property, then +throughout the period that the taxpayer owned the +flipped property +(a) the taxpayer is deemed to carry on a business that +is an adventure or concern in the nature of trade with +respect to the flipped property; +2021-2022 + +Page 8 +(b) the flipped property is deemed to be inventory of +the taxpayer’s business; and +(c) the flipped property is deemed not to be capital +property of the taxpayer. +Definition of flipped property +(13) For the purposes of subsections (12) and (14), a +flipped property means a housing unit of a taxpayer +(other than a property that would be inventory of the tax- +payer if the definition inventory in subsection 248(1) +were read without reference to subsection (12)) located in +Canada that was owned by the taxpayer for less than 365 +consecutive days prior to the disposition of the property, +other than a disposition that can reasonably be consid- +ered to occur due to, or in anticipation of, one or more of +the following events: +(a) the death of the taxpayer or a person related to the +taxpayer; +(b) one or more persons related to the taxpayer be- +coming a member of the taxpayer’s household or the +taxpayer becoming a member of the household of a re- +lated person; +(c) the breakdown of the marriage or common-law +partnership of the taxpayer if the taxpayer has been +living separate and apart from their spouse or com- +mon-law partner for at least 90 days prior to the dispo- +sition; +(d) a threat to the personal safety of the taxpayer or a +related person; +(e) the taxpayer or a related person suffering from a +serious illness or disability; +(f) an eligible relocation (as defined in subsection +248(1)) of the taxpayer or the taxpayer’s spouse or +common-law partner, if that definition was read with- +out reference to the requirements for the new work lo- +cation and the new residence to be in Canada; +(g) an involuntary termination of the employment of +the taxpayer or the taxpayer’s spouse or common-law +partner; +(h) the insolvency of the taxpayer; or +(i) the destruction or expropriation of the property. +(bien à revente précipitée) +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +2 + +Page 9 +Flipped property — loss denial +(14) For the purposes of this Part, a taxpayer’s loss from +a business in respect of a flipped property is deemed to +be nil. +(2) Subsection (1) applies throughout the period +that the flipped property is owned by the taxpay- +er in respect of dispositions that occur after 2022. +3 (1) Paragraph 18(1)(u) of the Act is replaced by +the following: +Fees — individual saving plans +(u) any amount paid or payable by the taxpayer for +services in respect of a FHSA, retirement savings plan, +retirement income fund or TFSA under or of which the +taxpayer is the annuitant or holder; +(2) Subsection 18(9.02) of the Act is replaced by +the following: +Application of subsection (9) to insurers +(9.02) For the purpose of subsection (9), an outlay or ex- +pense made or incurred by an insurer in a taxation year +on account of the acquisition of an insurance policy at +any time prior to the issuance of the policy is deemed to +be an expense incurred as consideration for services ren- +dered in the particular year that the policy is issued. +(3) Subsection 18(11) of the Act is amended by +striking out “or” at the end of paragraph (i), by +adding “or” at the end of paragraph (j) and by +adding the following after paragraph (j): +(k) making a contribution to a FHSA, +(4) Subsections (1) and (3) come into force on +April 1, 2023. +(5) Subsection (2) applies to taxation years that +begin after 2022. +4 (1) Clause 40(2)(g)(iv)(A) of the Act is replaced +by the following: +(A) a trust governed by a deferred profit sharing +plan, an employees profit sharing plan, a FHSA, +a registered disability savings plan, a registered +retirement income fund or a TFSA, under which +the taxpayer is a beneficiary or immediately after +the disposition becomes a beneficiary, or +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 2-4 + +Page 10 +(2) Subsection (1) comes into force on April 1, +2023. +5 (1) Subsection 56(1) of the Act is amended by +striking out “and” at the end of paragraph (z.4), +by adding “and” at the end of paragraph (z.5) and +by adding the following after paragraph (z.5): +First home savings account +(z.6) any amount required by section 146.6 to be in- +cluded in computing the taxpayer’s income for the +year. +(2) Subsection (1) comes into force on April 1, +2023. +6 (1) Paragraph 60(i) of the Act is replaced by the +following: +Premium or payment — FHSA, RRSP or RRIF +(i) any amount that is deductible under section 146, +146.3 or 146.6 or subsection 147.3(13.1) in computing +the income of the taxpayer for the year; +(2) Subsection (1) comes into force on April 1, +2023. +7 (1) Paragraph 66(12.6)(a) of the Act is replaced +by the following: +(a) the assistance that the corporation has received, is +entitled to receive or can reasonably be expected to re- +ceive at any time, and that can reasonably be related +to the specified expenses or to Canadian exploration +activities to which the specified expenses relate (other +than assistance that can reasonably be related to ex- +penses referred to in any of paragraphs (b) to (b.2)), +(2) Subsection 66(12.6) of the Act is amended by +striking out “and” at the end of paragraph (b.1) +and by adding the following after that paragraph: +(b.2) if the agreement is made after March 2023, all +specified expenses that are not described in paragraph +(b) or (b.1) and that would be Canadian exploration +expenses if +(i) the definition Canadian exploration expense +in subsection 66.1(6) were read without reference to +its paragraph (g.1), and +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 4-7 + +Page 11 +(ii) the definition mineral resource in subsection +248(1) were read without reference to its para- +graphs (a) and (d), and +(3) Paragraph 66(12.62)(a) of the Act is replaced +by the following: +(a) the assistance that the corporation has received, is +entitled to receive, or can reasonably be expected to +receive at any time, and that can reasonably be related +to the specified expenses or to Canadian development +activities to which the specified expenses relate (other +than assistance that can reasonably be related to ex- +penses referred to in any of paragraphs (b) to (b.2)), +(4) Subsection 66(12.62) of the Act is amended by +striking out “and” at the end of paragraph (b.1) +and by adding the following after that paragraph: +(b.2) if the agreement is made after March 2023, all +specified expenses that are not described in paragraph +(b) or (b.1) and that would be Canadian development +expenses if the definition mineral resource in subsec- +tion 248(1) were read without reference to its para- +graphs (a) and (d), and +(5) Subsections (1) and (3) apply in respect of +flow-through +share +agreements +made +after +March 2023. +8 (1) The description of L in the definition cumu- +lative Canadian exploration expense in subsection +66.1(6) of the Act is replaced by the following: +L +is that portion of the total of all amounts each of +which was deducted by the taxpayer under subsec- +tion 127(5) or (6) for a taxation year that ended be- +fore that time and that can reasonably be attributed +to a qualified Canadian exploration expenditure, a +pre-production +mining +expenditure, +a +flow- +through mining expenditure or a flow-through +critical mineral mining expenditure (each expendi- +ture as defined in subsection 127(9)) made in a pre- +ceding taxation year, and +(2) Subsection (1) is deemed to have come into +force on April 7, 2022. +9 (1) Subsection 74.5(12) of the Act is amended by +striking out “or” at the end of paragraph (b), by +adding “or” at the end of paragraph (c) and by +adding the following after paragraph (c): +(d) as a payment of a contribution under a FHSA. +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 7-9 + +Page 12 +(2) Subsection (1) comes into force on April 1, +2023. +10 (1) Paragraph 75(3)(a) of the Act is replaced +by the following: +(a) by a trust governed by a deferred profit sharing +plan, an employee benefit plan, an employees profit +sharing plan, a FHSA, a pooled registered pension +plan, a registered disability savings plan, a registered +education savings plan, a registered pension plan, a +registered retirement income fund, a registered retire- +ment savings plan, a registered supplementary unem- +ployment benefit plan, a retirement compensation ar- +rangement or a TFSA; +(2) Subsection (1) comes into force on April 1, +2023. +11 (1) Subsection 87(2) of the Act is amended by +striking out “and” at the end of paragraph (vv), +by adding “and” at the end of paragraph (ww) +and by adding the following after paragraph +(ww): +(xx) for the purposes of Part VI.2, the new corporation +is deemed to be the same corporation as, and a contin- +uation of, each predecessor corporation. +(2) Subsection (1) applies to the 2022 and subse- +quent taxation years. +12 (1) The portion of paragraph 88(1)(e.2) of the +Act before subparagraph (i) is replaced by the +following : +(e.2) paragraphs 87(2)(c), (d.1), (e.1), (e.3), (e.42), (g) +to (l), (l.21) to (u), (x), (z.1), (z.2), (aa), (cc), (ll), (nn), +(pp), (rr) and (tt) to (xx), subsection 87(6) and, subject +to section 78, subsection 87(7) apply to the winding-up +as if the references in those provisions to +(2) Subsection (1) applies to the 2022 and subse- +quent taxation years. +13 (1) Subsection 104(1) of the Act is replaced by +the following: +Reference to trust or estate +104 (1) In this Act, a reference to a trust or estate (in +this Subdivision referred to as a “trust”) shall, unless the +context otherwise requires, be read to include a reference +to the trustee, executor, administrator, liquidator of a +succession, heir or other legal representative having +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 9-13 + +Page 13 +ownership or control of the trust property, but, except for +the purposes of this subsection, subsection (1.1), section +150, subparagraph (b)(v) of the definition disposition in +subsection 248(1) and paragraph (k) of that definition, a +trust is deemed not to include an arrangement under +which the trust can reasonably be considered to act as +agent for all the beneficiaries under the trust with respect +to all dealings with all of the trust’s property unless the +trust is described in any of paragraphs (a) to (e.1) of the +definition trust in subsection 108(1). +(2) Subsection (1) applies to taxation years that +end after December 30, 2023. +14 (1) The portion of paragraph 107(2.1)(c) of the +Act before subparagraph (i) is replaced by the +following: +(c) unless the trust is a mutual fund trust, the benefi- +ciary’s proceeds of disposition of the portion of the +former interest disposed of by the beneficiary on the +distribution are deemed to be equal to the amount, if +any, by which +(2) Subsection (1) applies to taxation years that +begin after December 15, 2021. +15 (1) Paragraph (a) of the definition trust in +subsection 108(1) of the Act is replaced by the fol- +lowing: +(a) an amateur athlete trust, an employee life and +health trust, an employee trust, a trust described in +paragraph 149(1)(o.4) or a trust governed by a de- +ferred profit sharing plan, an employee benefit plan, +an employees profit sharing plan, a FHSA, a foreign +retirement arrangement, a pooled registered pension +plan, a registered disability savings plan, a registered +education savings plan, a registered pension plan, a +registered retirement income fund, a registered retire- +ment savings plan, a registered supplementary unem- +ployment benefit plan or a TFSA, +(2) Paragraph 108(1.1)(a) of the Act is replaced by +the following: +(a) a qualifying expenditure (within the meaning of +section 118.04, 118.041 or 122.92) of a beneficiary un- +der the trust; or +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 13-15 + +Page 14 +(3) Subsection (1) comes into force on April 1, +2023. +(4) Subsection (2) comes into force or is deemed +to have come into force on January 1, 2023. +16 Section 116 of the Act is amended by adding +the following after subsection (7): +Exception — underused housing tax +(8) If, in the absence of this subsection, the Minister +would be required to issue a certificate under subsection +(2), (4) or (5.2) in respect of a disposition, or a proposed +disposition, of property that is residential property, as +defined in section 2 of the Underused Housing Tax Act, +the Minister may decline to issue the certificate if +(a) the Minister is not satisfied that all returns that +the non-resident person is required to file under sec- +tion 7 of that Act in respect of the property have been +filed; +(b) the Minister is not satisfied that all taxes and other +amounts payable under that Act by the non-resident +person have been paid; or +(c) the following conditions are met: +(i) the Minister has reasonable grounds to believe +that, for the calendar year immediately preceding +the calendar year in which the property is or is ex- +pected to be disposed of, the non-resident person +will be required to file a return under section 7 of +that Act in respect of the property or will become li- +able to pay an amount of tax under subsection 6(3) +of that Act in respect of the property, and +(ii) the return has not been filed or the amount of +tax has not been paid. +17 (1) Subsection 118.05(3) of the Act is replaced +by the following: +First-time homebuyers’ tax credit +(3) In computing the tax payable under this Part by an +individual for a taxation year in which a qualifying home +in respect of the individual is acquired, there may be de- +ducted the amount determined by multiplying $10,000 by +the appropriate percentage for the taxation year. +(2) Subsection (1) applies to the 2022 and subse- +quent taxation years. +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 15-17 + +Page 15 +18 (1) Subsection 118.2(2) of the Act is amended +by striking out “or” at the end of paragraph (t), +by adding “or” at the end of paragraph (u) and by +adding the following after paragraph (u): +(v) to a fertility clinic, or donor bank, in Canada as a +fee or other amount paid or payable, to obtain sperm +or ova to enable the conception of a child by the indi- +vidual, the individual’s spouse or common-law partner +or a surrogate mother on behalf of the individual. +(2) Section 118.2 of the Act is amended by adding +the following after subsection (2.2): +Surrogacy expenses +(2.21) An amount is deemed to be a medical expense of +an individual for the purposes of this section if the +amount +(a) is paid by the individual or the individual’s spouse +or common-law partner; +(b) is +(i) an expenditure described under any of sections +2 to 4 of the Reimbursement Related to Assisted +Human Reproduction Regulations, or +(ii) paid in respect of a surrogate mother or donor +and would be an expenditure described in subpara- +graph (i) if it was paid to the surrogate mother or +donor; +(c) would be a medical expense of the individual +(within the meaning of subsection (2)) if the amount +was paid in respect of a good or service provided to the +individual or the individual’s spouse or common-law +partner; +(d) is an expense incurred in Canada; and +(e) is paid for the purpose of the individual becoming +a parent. +(3) Subsections (1) and (2) apply to the 2022 and +subsequent taxation years. +19 (1) The Act is amended by adding the follow- +ing after section 122.91: +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 18-19 + +Page 16 +SUBDIVISION A.6 +Multigenerational Home +Renovation Tax Credit +Definitions +122.92 (1) The following definitions apply in this sec- +tion. +eligible dwelling, of a qualifying individual, for a reno- +vation period taxation year, means a housing unit (in- +cluding the land subjacent to the housing unit and the +immediately contiguous land, but not including the por- +tion of that land that exceeds the greater of ½ hectare +and the portion of that land that is necessary for the use +and enjoyment of the housing unit as a residence) located +in Canada if +(a) the qualifying individual or a qualifying relation of +the qualifying individual (or a trust under which the +qualifying individual or a qualifying relation is a bene- +ficiary) owns — whether jointly with another person or +otherwise — at any time in the renovation period taxa- +tion year, the housing unit; and +(b) the housing unit is ordinarily inhabited, or is rea- +sonably expected to be ordinarily inhabited, within 12 +months after the end of the renovation period +(i) by the qualifying individual, and +(ii) by a qualifying relation of the qualifying indi- +vidual. (logement admissible) +eligible individual, in respect of an eligible dwelling for a +renovation period taxation year, means +(a) an individual who ordinarily resides, or intends to +ordinarily reside, in the eligible dwelling within 12 +months after the end of the renovation period in re- +spect of a qualifying renovation of the eligible dwelling +and who is +(i) a qualifying individual, +(ii) the cohabiting spouse or common-law part- +ner (as defined in section 122.6) of a qualifying in- +dividual at any time in the renovation period taxa- +tion year, or +(iii) a qualifying relation of a qualifying individual; +or +(b) an individual who +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +19 + +Page 17 +(i) is a qualifying relation of a qualifying individual, +and +(ii) owns the eligible dwelling or is the beneficiary +of a trust that owns the eligible dwelling. (particu- +lier admissible) +individual does not include a trust. (particulier) +qualifying expenditure, of an individual, means a rea- +sonable outlay or expense that +(a) is directly attributable to a qualifying renovation of +an eligible dwelling in respect of which the individual +is an eligible individual; +(b) is made or incurred by the individual before the +end of the renovation period in respect of the qualify- +ing renovation referred to in paragraph (a); +(c) is the cost of goods acquired or services received, +including an outlay or expense for permits required +for, or for the rental of equipment used in the course +of, the qualifying renovation; and +(d) is not an outlay or expense +(i) for the cost of annual, recurring or routine re- +pair or maintenance, +(ii) to acquire a household appliance, +(iii) to acquire an electronic home-entertainment +device, +(iv) that is the cost of housekeeping, security moni- +toring, gardening, outdoor maintenance or similar +services, +(v) for financing costs in respect of the qualifying +renovation, +(vi) in respect of goods or services provided by a +person not dealing at arm’s length with the individ- +ual, unless the person is registered for the purposes +of Part IX of the Excise Tax Act, or +(vii) that can reasonably be considered to have +been reimbursed. (dépense admissible) +qualifying individual, in respect of a renovation period +taxation year, means an individual who has attained the +age of +(a) 65 years before the end of the renovation period +taxation year; or +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +19 + +Page 18 +(b) 18 years before the end of the renovation period +taxation year and in respect of whom an amount is de- +ductible, or would be deductible if this Act were read +without reference to paragraph 118.3(1)(c), under sec- +tion 118.3 in computing a taxpayer’s tax payable under +this Part for the renovation period taxation year. (par- +ticulier déterminé) +qualifying relation, of a qualifying individual for a reno- +vation period taxation year, means an individual who +(a) has attained the age of 18 years before the end of +the renovation period taxation year; and +(b) at any time in the renovation period taxation year, +is a parent, grandparent, child, grandchild, brother, +sister, aunt, uncle, niece or nephew of either the quali- +fying individual or the cohabiting spouse or com- +mon-law partner (as defined in section 122.6) of the +qualifying individual. (proche admissible) +qualifying renovation means a renovation or alteration +of, or addition to, an eligible dwelling of a qualifying indi- +vidual that +(a) is of an enduring nature and integral to the eligible +dwelling; and +(b) is undertaken to enable the qualifying individual +to reside in the dwelling with a qualifying relation of +the qualifying individual by establishing a secondary +unit within the dwelling for occupancy by the qualify- +ing individual or the qualifying relation. (travaux de +rénovation admissibles) +renovation period, for a qualifying renovation of an eli- +gible dwelling, means a period that +(a) begins at the time that the first qualifying expendi- +ture is made or incurred in respect of the qualifying +renovation, and +(b) ends at the time of the completion of the qualify- +ing renovation. (période de rénovation) +renovation period taxation year means the taxation +year in which the renovation period in respect of a quali- +fying renovation ends. (année d’imposition de la pé- +riode de rénovation) +secondary unit means a self-contained housing unit +that +(a) has a private entrance, kitchen, bathroom and +sleeping area, +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +19 + +Page 19 +(b) if applicable, meets any local requirements to +qualify as a secondary dwelling unit, and +(c) meets prescribed conditions, if any. (logement se- +condaire) +Qualifying expenditure — trusts +(2) For the purposes of this section, a qualifying expendi- +ture of a particular individual who is an eligible individu- +al in respect of an eligible dwelling includes an outlay or +expense made or incurred by a trust of which the particu- +lar individual is a beneficiary, in respect of the eligible +dwelling, to the extent of the share of that outlay or ex- +pense that is reasonably attributable to the eligible +dwelling, having regard to the amount of the outlays or +expenses made or incurred in respect of the eligible +dwelling, if +(a) the outlay or expense would be a qualifying expen- +diture of the particular individual if the outlay or ex- +pense had been made or incurred by that individual; +and +(b) the trust has notified the particular individual of +the amount of the outlay or expenses that are at- +tributable to the eligible dwelling. +Deemed overpayment +(3) An eligible individual who files a return of income for +a renovation period taxation year and who makes a claim +under this subsection in that return of income is deemed +to have paid, at the end of the taxation year, on account +of tax payable under this Part for the taxation year, an +amount equal to the amount determined by the formula +A × B +where +A +is the appropriate percentage for the taxation year; +and +B +is the least of +(a) $50,000, +(b) the total of all amounts, each of which is a +qualifying expenditure of the individual in respect +of a qualifying renovation that ended in the taxa- +tion year, and +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +19 + +Page 20 +(c) if the individual is not resident in Canada +throughout the taxation year, nil. +Limits +(4) For the purpose of this section, +(a) in respect of a qualifying individual, there may on- +ly be one qualifying renovation for the purpose of a +claim under subsection (3) by all taxpayers during the +lifetime of the qualifying individual; +(b) a maximum of $50,000 of qualifying expenditures +may be claimed by all taxpayers in respect of the same +qualifying renovation; and +(c) if more than one taxpayer is entitled to a deduc- +tion under subsection (3) in respect of the same quali- +fying individual or the same qualifying renovation and +the taxpayers cannot agree as to what portion of the +amount each can so deduct, the Minister may fix the +portions. +Effect of bankruptcy +(5) For the purpose of this Subdivision, if an eligible in- +dividual becomes bankrupt in a particular calendar year, +despite subsection 128(2), any reference to the taxation +year of the eligible individual is deemed to be a reference +to the particular calendar year. +Special rules in the event of death +(6) For the purpose of this section, if an eligible individu- +al or a qualifying individual dies in a calendar year, +(a) the deceased individual is deemed to be resident in +Canada from the time of death until the end of the +year if, immediately before death, the deceased indi- +vidual was resident in Canada; +(b) the deceased individual is deemed to be the same +age at the end of the year as the individual would have +been if the individual were alive at the end of the year; +(c) the deceased individual is deemed to be the cohab- +iting spouse or common-law partner of another indi- +vidual (referred to in this paragraph as the “surviving +spouse”) at the end of the year if, +(i) immediately before death, the deceased individ- +ual was the cohabiting spouse or common-law +partner (as defined in section 122.6) of the surviv- +ing spouse, and +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +19 + +Page 21 +(ii) the surviving spouse is not the cohabiting +spouse or common-law partner (as defined in +section 122.6) of another individual at the end of +the year; and +(d) any return of income filed by a legal representative +of the deceased individual is deemed to be a return of +income filed by the individual. +(2) Subsection (1) applies to the 2023 and subse- +quent taxation years in respect of qualifying ex- +penditures paid after December 31, 2022 for ser- +vices performed or goods acquired after that +date. +20 (1) The Act is amended by adding the follow- +ing after section 123.5: +Additional Tax on Banks and Life Insurers +Definition +123.6 (1) The following definition applies in this sec- +tion. +bank or life insurer group member means a corpora- +tion that is +(a) a bank; +(b) a life insurance corporation that carries on busi- +ness in Canada; or +(c) a financial institution (as defined in subsection +190(1)) that is related to any corporation described in +paragraph (a) or (b). (membre d’un groupe de +banques ou d’assureurs-vie) +Additional tax payable +(2) There shall be added to the tax otherwise payable un- +der this Part for a taxation year, by a corporation that is a +bank or life insurer group member at any time during the +taxation year, an amount determined by the formula +0.015 (A − B) +where +A +is the corporation’s taxable income for the taxation +year (or the corporation’s taxable income earned in +Canada if the corporation is non-resident in the taxa- +tion year); and +B +is +(a) if the corporation is not related to another +bank or life insurer group member at the end of +the taxation year of the corporation, +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 19-20 + +Page 22 +(i) where the corporation’s taxation year is not +less than 51 weeks, $100 million, and +(ii) in any other case, the amount determined +by the formula +$100 million × (C ÷ 365) +where +C +is the number of days in the taxation year, +and +(b) in any other case, subject to subsection (5), +nil. +Related group +(3) For the purposes of this section, a corporation that is +described in paragraph (a) or (b) of the definition bank +or life insurer group member in subsection (1) at any +time during a taxation year and that was related to an- +other bank or life insurer group member at the end of the +year (in this section, the corporation and each such bank +or life insurer group member are referred to together as +the “related group”) may file with the Minister, with the +corporation’s return of income, an agreement in pre- +scribed form on behalf of the related group under which +an amount that does not exceed $100 million is allocated +among the related group for all taxation years of mem- +bers of the related group ending in the same calendar +year. +Allocation by Minister +(4) The Minister may request a corporation that is a +member of a related group at any time during a taxation +year to file with the Minister an agreement referred to in +subsection (3) and, if the corporation does not file the +agreement within 30 days after receiving the request, the +Minister may allocate the amount referred to in subsec- +tion (3) among the related group for the taxation years of +the bank or life insurer group members ending in the +same calendar year. +Allocation +(5) For the purposes of this section, the least amount al- +located for a taxation year to each bank or life insurer +group member under an agreement described in subsec- +tion (3) or by the Minister under subsection (4) is the +amount determined for B in subsection (2) for the taxa- +tion year of that member, but, if no such allocation is +made, the amount determined for B in subsection (2) of +each bank or life insurer group member for that year is +nil. +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +20 + +Page 23 +Anti-avoidance +(6) If an amount has been deducted in computing the in- +come of a corporation, the amount is deemed not to have +been deducted in computing the corporation’s taxable in- +come, or taxable income earned in Canada, as the case +may be, for the purpose of computing the tax payable by +the corporation under subsection (2), if +(a) the deduction is in respect of an amount that can +reasonably be considered to have been paid or payable +(in this subsection referred to as “the payment”), di- +rectly or indirectly, to a person or partnership that was +not dealing at arm’s length with the corporation; +(b) the person or partnership was not a bank or life +insurer group member; and +(c) it can reasonably be considered that one of the +purposes of the payment was to reduce the tax payable +by the corporation under subsection (2). +(2) Subsection (1) applies to taxation years that +end after April 7, 2022. However, for a taxation +year that includes April 7, 2022, the amount of tax +payable under subsection 123.6(2) of the Act, as +enacted by subsection (1), is prorated based on +the number of days in the taxation year that are +after April 7, 2022 divided by the number of days +in that taxation year. +21 (1) The first formula in paragraph 125(5.1)(a) +of the Act is replaced by the following: +A × B ÷ $90,000 +(2) Subsection (1) applies to taxation years that +begin on or after April 7, 2022. +22 (1) Subparagraph 127(5)(a)(i) of the Act is re- +placed by the following: +(i) the taxpayer’s investment tax credit at the end of +the year in respect of property acquired before the +end of the year, of the taxpayer’s apprenticeship ex- +penditure for the year or a preceding taxation year, +of the taxpayer’s flow-through mining expenditure +for the year or a preceding taxation year, of the tax- +payer’s flow-through critical mineral mining expen- +diture for the year or a preceding taxation year, of +the taxpayer’s pre-production mining expenditure +for the year or a preceding taxation year or of the +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 20-22 + +Page 24 +taxpayer’s SR&ED qualified expenditure pool at the +end of the year or at the end of a preceding taxation +year, and +(2) Clause 127(5)(a)(ii)(A) of the Act is replaced +by the following: +(A) the taxpayer’s investment tax credit at the +end of the year in respect of property acquired in +a subsequent taxation year, of the taxpayer’s ap- +prenticeship expenditure for a subsequent taxa- +tion year, of the taxpayer’s flow-through mining +expenditure for a subsequent taxation year, of +the taxpayer’s flow-through critical mineral min- +ing expenditure for a subsequent taxation year, +of the taxpayer’s pre-production mining expen- +diture for a subsequent taxation year or of the +taxpayer’s SR&ED qualified expenditure pool at +the end of the subsequent taxation year to the +extent that an investment tax credit was not de- +ductible under this subsection for the subse- +quent taxation year, and +(3) The definition flow-through mining expenditure +in subsection 127(9) of the Act is amended by +striking out “and” at the end of paragraph (c), by +adding “and” at the end of paragraph (d) and by +adding the following after paragraph (d): +(e) that is not an expense that the taxpayer has includ- +ed under paragraph (a.21) of the definition invest- +ment tax credit in the computation of its investment +tax credit in respect of which the taxpayer has, at any +time, sought a deduction under subsection (5); (dé- +pense minière déterminée) +(4) The definition investment tax credit in subsec- +tion 127(9) of the Act is amended by adding the +following after paragraph (a.2): +(a.21) where the taxpayer is an individual (other than +a trust), 30% of the taxpayer’s flow-through critical +mineral mining expenditures for the year, +(5) Subsection 127(9) of the Act is amended by +adding the following in alphabetical order: +critical mineral means +(a) copper, +(b) nickel, +(c) lithium, +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +22 + +Page 25 +(d) cobalt, +(e) graphite, +(f) a rare earth element, +(g) scandium, +(h) titanium, +(i) gallium, +(j) vanadium, +(k) tellurium, +(l) magnesium, +(m) zinc, +(n) a platinum group metal, or +(o) uranium; (minéral critique) +flow-through critical mineral mining expenditure of a +taxpayer for a taxation year means an expense deemed by +subsection 66(12.61) (or by subsection 66(18) as a conse- +quence of the application of subsection 66(12.61) to the +partnership, referred to in paragraph (c) of this defini- +tion, of which the taxpayer is a member) to be incurred +by the taxpayer in the year +(a) that is a Canadian exploration expense incurred by +a corporation after April 7, 2022 in conducting mining +exploration activity from or above the surface of the +earth primarily targeting critical minerals, +(b) that +(i) is an expense described in paragraph (f) of the +definition Canadian exploration expense in sub- +section 66.1(6), and +(ii) is not an expense in respect of +(A) trenching, if one of the purposes of the +trenching is to carry out preliminary sampling +(other than specified sampling), +(B) digging test pits (other than for the purpose +of carrying out specified sampling), and +(C) preliminary sampling (other than specified +sampling), +(c) that is an amount in respect of which is renounced +in accordance with subsection 66(12.6) by the corpora- +tion to the taxpayer (or a partnership of which the +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +22 + +Page 26 +taxpayer is a member) under an agreement described +in that subsection and made after April 7, 2022 and on +or before March 31, 2027, +(d) that is not an expense that was renounced under +subsection 66(12.6) to the corporation (or a partner- +ship of which the corporation is a member), unless +that renunciation was under an agreement described +in that subsection and made after April 7, 2022 and on +or before March 31, 2027, +(e) that, in respect of an agreement described in para- +graph (c), a qualified professional engineer or profes- +sional geoscientist certifies in prescribed form and +manner that the expense is to be incurred in accor- +dance with an exploration plan that primarily targets +critical minerals if the qualified professional engineer +or professional geoscientist +(i) completed the certification within the 12-month +period immediately preceding the time when the +agreement is made, and +(ii) acted reasonably, in their professional capacity, +in completing the certification, and +(f) that is not an expense that the taxpayer has includ- +ed under paragraph (a.2) of the definition investment +tax credit in the computation of its investment tax +credit in respect of which the taxpayer has, at any +time, sought a deduction under subsection (5); (dé- +pense minière de minéral critique déterminée) +qualified professional engineer or professional geo- +scientist means an individual who +(a) is an engineer or geoscientist with a university de- +gree, or equivalent accreditation, in an area of geo- +science, or engineering, relating to mineral explo- +ration or mining, +(b) has at least five years of experience in mineral ex- +ploration, mine development or operation, or mineral +project assessment, or any combination of those, that +is relevant to their professional degree or area of prac- +tice, +(c) has experience relevant to the subject matter of +the exploration plan and the certification described in +paragraph (e) of the definition flow-through critical +mineral mining expenditure, and +(d) is registered and in good standing with a profes- +sional association that has the authority or recognition +by law of a jurisdiction in Canada to regulate the pro- +fession of engineering or geoscience in +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +22 + +Page 27 +(i) the jurisdiction where the property that is the +subject of the exploration plan is located, or +(ii) if there is no professional association in the ju- +risdiction described in subparagraph (i), a jurisdic- +tion in Canada where a professional association +regulates the profession of engineering or geo- +science; (ingénieur ou géoscientifique profes- +sionnel qualifié) +(6) Subsection 127(11.1) of the Act is amended by +adding the following after paragraph (c.2): +(c.21) the amount of a taxpayer’s flow-through criti- +cal mineral mining expenditure for a taxation year is +deemed to be the amount of the taxpayer’s flow- +through critical mineral mining expenditure for the +year as otherwise determined less the amount of any +government assistance or non-government assistance +in respect of expenses included in determining the +taxpayer’s flow-through critical mineral mining ex- +penditure for the year that, at the time of the filing of +the taxpayer’s return of income for the year, the tax- +payer has received, is entitled to receive or can reason- +ably be expected to receive; +(7) Subsections (1) to (6) are deemed to have +come into force on April 7, 2022. +23 (1) Paragraph (a) of the definition excluded +right or interest in subsection 128.1(10) of the Act is +amended by adding the following after subpara- +graph (iii.2): +(iii.3) a FHSA, +(2) Subsection (1) comes into force on April 1, +2023. +24 (1) Subsection 132(4) of the Act is amended by +adding the following in alphabetical order: +net asset value has the same meaning as in National +Instrument 81-102 Investment Funds, as amended +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 22-24 + +Page 28 +from time to time, of the Canadian Securities Adminis- +trators; (valeur liquidative) +(2) The portion of subsection 132(5.3) of the Act +before paragraph (a) is replaced by the follow- +ing: +Allocation to redeemers +(5.3) If a trust that is a mutual fund trust throughout a +taxation year paid or made payable, at any time in the +taxation year, to a beneficiary an amount on a redemp- +tion by that beneficiary of a unit of the trust (in this sub- +section and subsection (5.31) referred to as the “allocated +amount”) and the beneficiary’s proceeds from the dispo- +sition of that unit do not include the allocated amount, in +computing its income for the taxation year no deduction +may be made by the trust in respect of +(3) Section 132 of the Act is amended by adding +the following after subsection (5.3): +Allocations by ETFs +(5.31) If in a taxation year referred to in subsection (5.3) +(a) all of the units offered in the taxation year by a +mutual fund trust are listed on a designated stock ex- +change in Canada and are in continuous distribution +(in this subsection referred to as “ETF units”), then +paragraph 132(5.3)(b) does not apply and, in comput- +ing its income for the taxation year, no deduction may +be made by the trust in respect of the amount deter- +mined by the formula +A − (B ÷ (C + B) × D) +where +A +is the portion of the total of all allocated amounts +for the taxation year in respect of redemptions of +ETF units by beneficiaries of the trust during that +year that would be, without reference to subsec- +tion 104(6), amounts paid out of the taxable capi- +tal gains of the trust, +B +is the lesser of +(i) the total amount paid for redemptions of +the ETF units in the taxation year, and +(ii) the greater of +(A) the amount determined for C, and +(B) the net asset value of the trust at the end +of the previous taxation year, +C +is the net asset value of the trust at the end of the +taxation year, and +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +24 + +Page 29 +D +is the amount that would be, without reference to +subsection 104(6), the trust’s net taxable capital +gains (as determined under subsection 104(21.3)) +for the taxation year; or +(b) units offered by a mutual fund trust include units +that are not ETF units (in this paragraph referred to as +“non-ETF units”) and units that are ETF units, then +(i) in respect of redemptions of ETF units, para- +graph (5.3)(b) does not apply and paragraph (a) ap- +plies, except that +(A) the description of C is to be read as “is the +portion of the net asset value of the trust at the +end of the taxation year that is referable to the +ETF units,”, +(B) clause (ii)(B) of the description of B shall be +read as “the portion of the net asset value of the +trust at the end of the previous taxation year that +is referable to the ETF units,”, and +(C) the amount determined for D shall be the +amount determined by the formula +E ÷ F × G +where +E +is the portion of the net asset value of the +trust at the end of the taxation year that is +referable to the ETF units, +F +is the net asset value of the trust at the end +of the taxation year, and +G +is the amount that would be, without refer- +ence to subsection 104(6), the trust’s net tax- +able capital gains (as determined under sub- +section 104(21.3)) for the taxation year; and +(ii) in respect of redemptions of non-ETF units, in +addition to the limitation applicable under para- +graph (5.3)(b), the total amount of the deductions +that may be claimed by the trust for the taxation +year for the portion of the allocated amounts de- +scribed in the description of A in paragraph (5.3)(b) +in respect of non-ETF units shall not exceed the +amount determined by the formula +H ÷ I × J +where +H +is the portion of the net asset value of the trust +at the end of the taxation year that is referable +to the non-ETF units, +I +is the net asset value of the trust at the end of +the taxation year, and +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +24 + +Page 30 +J +is the amount that would be, without reference +to subsection 104(6), the trust’s net taxable cap- +ital gains (as determined under subsection +104(21.3)) for the taxation year. +(4) Subsections (1) to (3) apply to taxation years +that begin after December 15, 2021. +25 (1) Subsection 132.2(3) of the Act is amended +by striking out “and” at the end of paragraph +(m), by adding “and” at the end of paragraph (n) +and by adding the following after paragraph (n): +(o) for the purpose of applying subsection 132(5.31) to +a fund for a taxation year that includes the transfer +time, the following amounts are to be determined as if +the taxation year ended immediately before the trans- +fer time: +(i) if paragraph 132(5.31)(a) applies, the amounts +determined under the descriptions of B, C and D in +that paragraph, and +(ii) if paragraph 132(5.31)(b) applies, +(A) the amounts determined for B and C in +paragraph 132(5.31)(a), for the purpose of sub- +paragraph 132(5.31)(b)(i), +(B) the amounts determined for D, E, F and G in +clause 132(5.31)(b)(i)(C), and +(C) the amounts determined for H, I and J in +subparagraph 132(5.31)(b)(ii). +(2) Subsection (1) applies to taxation years that +begin after December 15, 2021. +26 (1) Paragraph 138(2.1)(b) of the Act is replaced +by the following: +(b) if, in the immediately preceding taxation year, the +designated foreign insurance business was not a desig- +nated foreign insurance business, for the purposes of +paragraph (4)(a), subsection (9), the definition desig- +nated insurance property in subsection (12) and +paragraphs 12(1)(d) to (e), the life insurer is deemed +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 24-26 + +Page 31 +to have carried on the business in Canada in that im- +mediately preceding year and to have claimed the +maximum amounts to which it would have been enti- +tled under subparagraph (3)(a)(i) and paragraphs +20(1)(l) and (l.1) and 20(7)(c) in respect of those speci- +fied Canadian risks if that designated foreign insur- +ance business had been a designated foreign insurance +business in that immediately preceding year; and +(2) Subparagraphs 138(3)(a)(i) and (ii) of the Act +are replaced by the following: +(i) any amount that the insurer claims as a policy +reserve for the year in respect of its groups of life +insurance contracts in Canada at the end of the +year, not exceeding the total of amounts that the in- +surer is allowed by regulation to deduct in respect +of those groups, +(3) Paragraph 138(4)(a) and (b) of the Act are re- +placed by the following: +(a) each +amount +deducted +under +subparagraph +(3)(a)(i) in computing the insurer’s income for the +preceding taxation year; +(b) the amount prescribed in respect of the insurer for +the year in respect of its groups of life insurance con- +tracts in Canada at the end of the year; and +(4) Paragraph 138(11.5)(j) of the Act is replaced by +the following: +(j) for the purpose of determining the income of the +transferor and the transferee for their taxation years +following their taxation years referred to in paragraph +(h), amounts deducted by the transferor as reserves +under subparagraph (3)(a)(i) and paragraphs 20(1)(l) +and (l.1) and 20(7)(c) of this Act and section 33 and +paragraph 138(3)(c) of the Income Tax Act, chapter +148 of the Revised Statutes of Canada, 1952, in its tax- +ation year referred to in paragraph (h) in respect of +the transferred property referred to in paragraph (b) +or the obligations referred to in paragraph (c) are +deemed to have been deducted by the transferee, and +not the transferor, for its taxation year referred to in +paragraph (h), +(5) Paragraph 138(11.5)(l) of the Act is replaced by +the following: +(l) for the purposes of this subsection and subsections +(11.7) and (11.9), the fair market value of considera- +tion received by the transferor from the transferee in +respect of the assumption or reinsurance of a particu- +lar obligation referred to in paragraph (c) is deemed to +be the total of the amounts deducted by the transferor +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +26 + +Page 32 +as a reserve under subparagraph (3)(a)(i) and para- +graph 20(7)(c) in its taxation year referred to in para- +graph (h) in respect of the particular obligation, and +(6) Paragraph 138(11.91)(d) of the Act is replaced +by the following: +(d) for the purposes of paragraph (4)(a), subsection +(9), the definition designated insurance property in +subsection (12) and paragraphs 12(1)(d), (d.1) and (e), +the insurer is deemed to have carried on the business +in Canada in that preceding year and to have claimed +the maximum amounts to which it would have been +entitled under subparagraph (3)(a)(i) and paragraphs +20(1)(l) and (l.1) and 20(7)(c) for that year, +(7) The portion of subsection 138(11.92) of the Act +after paragraph (b) and before paragraph (c) is +replaced by the following: +to a person (in this subsection referred to as the “pur- +chaser”) and obligations in respect of the business or line +of business, as the case may be, in respect of which a re- +serve may be claimed under subparagraph (3)(a)(i) or +paragraph 20(7)(c) (in this subsection referred to as the +“obligations”) were assumed by the purchaser, the fol- +lowing rules apply: +(8) The definitions base year, deposit accounting +insurance policy, excluded policy, reserve transition +amount and transition year in subsection 138(12) of +the Act are replaced by the following: +base year of an insurer means the insurer’s taxation +year that immediately precedes its transition year; (an- +née de base) +deposit accounting insurance policy in respect of an +insurer’s taxation year means an insurance policy of the +insurer that, according to International Financial Report- +ing Standards, is not an insurance contract for that taxa- +tion year; (police d’assurance à comptabilité de dé- +pôt ) +excluded policy in respect of an insurer’s base year +means an insurance policy of the insurer that would be a +deposit accounting insurance policy for the insurer’s base +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +26 + +Page 33 +year if International Financial Reporting Standards ap- +plied for that base year; (police exclue) +reserve transition amount of an insurer, in respect of +an insurance business carried on by it in its transition +year, means the positive or negative amount determined +by the formula +A + B − C − D − E − F + G + H +where +A +is the maximum amount that the insurer would be +permitted to claim under subparagraph (3)(a)(i) for +its base year in respect of a policy reserve for its +groups of life insurance contracts in Canada at the +end of the base year if +(a) the International Financial Reporting Stan- +dards that applied to the insurer in valuing its as- +sets and liabilities for its transition year had ap- +plied to it for its base year, and +(b) sections 1404 and 1406 of the Income Tax +Regulations were read in respect of the insurer’s +base year as they read in respect of its transition +year, +B +is the maximum amount that the insurer would be +permitted to claim under paragraph 20(7)(c) for its +base year in respect of a policy reserve for its groups +of insurance contracts at the end of the base year if +(a) the International Financial Reporting Stan- +dards that applied to the insurer in valuing its as- +sets and liabilities for its transition year had ap- +plied to it for its base year, and +(b) sections 1400 and 1402 of the Income Tax +Regulations were read in respect of the insurer’s +base year as they read in respect of its transition +year, +C +is the maximum amount that the insurer is permit- +ted to claim under subparagraphs (3)(a)(i) and (ii) +(as they read in their application to taxation years +that begin before 2023) as a policy reserve for its base +year, +D +is the maximum amount that the insurer is permit- +ted to claim under paragraph 20(7)(c) as a policy re- +serve for its base year, +E +is the amount that would be included under para- +graph (4)(b) in computing the insurer’s income for +its base year in respect of its groups of life insurance +contracts in Canada at the end of the base year if +(a) the International Financial Reporting Stan- +dards that applied to the insurer in valuing its as- +sets and liabilities for its transition year had ap- +plied to it for its base year, and +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +26 + +Page 34 +(b) sections 1404 and 1406 of the Income Tax +Regulations were read in respect of the insurer’s +base year as they read in respect of its transition +year, +F +is the amount that would be included under para- +graph 12(1)(e.1) in computing the insurer’s income +for its base year if +(a) the International Financial Reporting Stan- +dards that applied to the insurer in valuing its as- +sets and liabilities for its transition year had ap- +plied to it for its base year, and +(b) sections 1400 and 1402 of the Income Tax +Regulations were read in respect of the insurer’s +base year as they read in respect of its transition +year, +G +is the amount included under paragraph (4)(b) (as it +read in its application to taxation years that begin +before 2023) in computing the insurer’s income for +its base year in respect of its life insurance policies, +and +H +is the amount included under paragraph 12(1)(e.1) in +computing the insurer’s income for its base year; +(montant transitoire) +transition year of an insurer means the insurer’s first +taxation year that begins after 2022. (année transitoire) +(9) Subsection 138(12) of the Act is amended by +adding the following in alphabetical order: +contractual service margin for a group of insurance +contracts of an insurer, or a group of reinsurance con- +tracts held by the insurer, at the end of a taxation year, +means the greater of the positive or negative amount of +the contractual service margin for the group +(a) that would be reported as at the end of the taxa- +tion year if the amount were determined without ref- +erence to amounts described in subparagraphs (a)(i) +to (iii) of the definition liability for remaining cover- +age in this subsection, and +(b) that would be determined at the end of the taxa- +tion year in respect of the group in accordance with +International Financial Reporting Standards using +reasonable assumptions in the circumstances if the +amount were determined without reference to +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +26 + +Page 35 +amounts described in subparagraphs (a)(i) to (iii) of +the definition liability for remaining coverage in this +subsection; (marge sur services contractuels) +group of insurance contracts of an insurer means a +group of insurance contracts of the insurer, determined +according to International Financial Reporting Stan- +dards, that is a group for the purposes of determining an +amount of the insurer that is reported as at the end of the +insurer’s taxation year and, for greater certainty, includes +a group of insurance contracts that include reinsurance +contracts under which the insurer has assumed reinsur- +ance risk; (groupe de contrats d’assurance) +group of life insurance contracts of an insurer means +a group of life insurance contracts of the insurer, deter- +mined according to International Financial Reporting +Standards, that is a group for the purposes of determin- +ing an amount of the insurer that is reported as at the +end of the insurer’s taxation year and, for greater certain- +ty, includes a group of life insurance contracts that in- +clude reinsurance contracts under which the insurer has +assumed reinsurance risk; (groupe de contrats d’assu- +rance-vie) +group of life insurance contracts in Canada of an in- +surer means a group of life insurance contracts of the in- +surer that includes only life insurance contracts issued or +effected by the insurer on the life of a person resident in +Canada at the time the contract was issued or effected; +(groupe de contrats d’assurance-vie au Canada) +group of reinsurance contracts held by an insurer +means a group of reinsurance insurance contracts held +by the insurer, determined according to International Fi- +nancial Reporting Standards, that is a group for the pur- +poses of determining an amount of the insurer that is re- +ported as at the end of the insurer’s taxation year; +(groupe de contrats de réassurance) +group of segregated fund policies of an insurer means +a group of insurance contracts of the insurer that in- +cludes only segregated fund policies (within the meaning +assigned by paragraph 138.1(1)(a)); (groupe de polices +à fonds réservé) +liability for incurred claims, for a group of insurance +contracts of an insurer at the end of a taxation year, +means the lesser of the positive or negative amount of the +liability for incurred claims for the group +(a) that would be reported as at the end of the taxa- +tion year if the amount were determined without ref- +erence to amounts described in subparagraphs (a)(i) +to (iii) of the definition liability for remaining cover- +age in this subsection, and +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +26 + +Page 36 +(b) that would be determined at the end of the taxa- +tion year in accordance with International Financial +Reporting Standards using reasonable assumptions in +the circumstances if the amount were determined +without reference to amounts described in subpara- +graphs (a)(i) to (iii) of the definition liability for re- +maining coverage in this subsection; (passif au titre +des sinistres survenus) +liability for remaining coverage, for a group of insur- +ance contracts of an insurer at the end of a taxation year, +means the lesser of the positive or negative amount of the +liability for remaining coverage for the group +(a) that would be reported as at the end of the taxa- +tion year if the amount were determined without ref- +erence to +(i) projected +(A) income and capital taxes (other than the tax +payable under Part XII.3), +(B) taxes on premiums that are not deductible +under Part I, +(C) amounts not deductible after the taxation +year in computing income under Part I, and +(D) cash flows in respect of funds withheld ar- +rangements, +(ii) amounts payable that are deductible for the tax- +ation year, or a previous taxation year, in comput- +ing income under Part I, and +(iii) amounts receivable to the extent they have +been included for the taxation year, or a previous +taxation year, in computing income under Part I, +and +(b) that would be determined at the end of the taxa- +tion year in accordance with International Financial +Reporting Standards using reasonable assumptions in +the circumstances if the amount were determined +without reference to amounts described in subpara- +graphs (a)(i) to (iii); (passif au titre de la couverture +restante) +policyholders’ liabilities, of an insurer as at the end of a +taxation year, means the amount reported as policyhold- +ers’ liabilities as at the end of the year; (obligation en- +vers les titulaires de polices) +reinsurance contract held amount, for a group of rein- +surance contracts held by an insurer at the end of a taxa- +tion year, means the lesser of the positive or negative +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +26 + +Page 37 +amount of the reinsurance contract held asset for the +group +(a) that would be reported as at the end of the taxa- +tion year if the amount were determined without ref- +erence to amounts described in subparagraphs (a)(i) +to (iii) of the definition liability for remaining cover- +age in this subsection, and +(b) that would be determined at the end of the taxa- +tion year in accordance with International Financial +Reporting Standards using reasonable assumptions in +the circumstances if the amount were determined +without reference to amounts described in subpara- +graphs (a)(i) to (iii) of the definition liability for re- +maining coverage in this subsection; (montant au +titre des contrats de réassurance détenus) +relevant authority of an insurer means +(a) the Superintendent of Financial Institutions, if the +insurer is required by law to report to the Superinten- +dent of Financial Institutions, and +(b) in any other case, the Superintendent of Insurance +or other similar officer or authority of the province un- +der whose laws the insurer is incorporated; (autorité +compétente) +(10) Section 138 of the Act is amended by adding +the following after subsection (12): +Assets and liabilities +(12.1) For greater certainty, in determining the amount +of +(a) the contractual service margin, liability for in- +curred claims and liability for remaining coverage for +a group of insurance contracts of an insurer, the +amount is +(i) a positive amount if the amount is reported as a +liability, and +(ii) a negative amount if the amount is reported as +an asset; and +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +26 + +Page 38 +(b) the contractual service margin and reinsurance +contract held amount for a group of reinsurance con- +tracts held by an insurer, the amount is +(i) a positive amount if the amount is reported as +an asset, and +(ii) a negative amount if the amount is reported as +a liability. +IFRS reference +(12.2) Except as otherwise provided, references to Inter- +national Financial Reporting Standards in this section re- +fer to the International Financial Reporting Standards +adopted by the Accounting Standards Board and effective +for years that begin on or after January 1, 2023. +Amount reported +(12.3) A reference in subsections (12) and 138.1(1) of +this Act and Parts XIV, XXIV and LXXXVI of the Income +Tax Regulations to an amount that is reported, or that +would be reported, of an insurer as at the end of a taxa- +tion year means +(a) if the insurer is the Canada Mortgage and Housing +Corporation or a foreign affiliate of a taxpayer resident +in Canada, an amount that is reported, or that would +be reported, in the insurer’s financial statements for +the year if those statements were prepared in accor- +dance with International Financial Reporting Stan- +dards; +(b) if paragraph (a) does not apply and reporting by +the insurer to the insurer’s relevant authority is re- +quired at the end of the year, an amount that is report- +ed, or that would be reported, in the insurer’s non- +consolidated balance sheet for the year accepted by +the insurer’s relevant authority; +(c) if paragraphs (a) and (b) do not apply and the in- +surer is, throughout the year, subject to the supervi- +sion of its relevant authority, an amount that is report- +ed, or that would be reported, in a non-consolidated +balance sheet for the year that is prepared in a manner +consistent with the requirements that would have ap- +plied had reporting to the insurer’s relevant authority +been required at the end of the year; and +(d) in any other case, nil. +(11) Subsections 138(16) to (17.1) of the Act are re- +placed by the following: +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +26 + +Page 39 +Transition year income inclusion +(16) There shall be included in computing an insurer’s +income for its transition year from an insurance business +carried on by it in the transition year the positive +amount, if any, of the insurer’s reserve transition amount +in respect of that insurance business. +Transition year income deduction +(17) There shall be deducted in computing an insurer’s +income for its transition year from an insurance business +carried on by it in the transition year the absolute value +of the negative amount, if any, of the insurer’s reserve +transition amount in respect of that insurance business. +IFRS transition — reversals +(17.1) In applying subsections (18) and (19) to an insur- +er for a taxation year of the insurer in respect of Interna- +tional Financial Reporting Standards, +(a) the reference to “policy reserve” in the description +of C in the definition reserve transition amount in +subsection (12) is to be read as a reference to “policy +reserve determined without reference to the insurer’s +excluded policies”; +(b) the description of D in the definition reserve tran- +sition amount in subsection (12) is to be read as fol- +lows: +D +is the amount determined by the formula +D.1 − D.2 +where +D.1 +is the maximum amount that the insurer is +permitted to claim under paragraph 20(7)(c) +as a policy reserve determined without refer- +ence to the insurer’s excluded policies, and +D.2 +is the amount of policy acquisition costs of the +insurer that is not deductible, but in the ab- +sence of subsection 18(9.02) (as it read in the +base year) would have been deductible, in the +base year or a preceding taxation year; +(c) the reference to “life insurance policies” in the de- +scription of G in the definition reserve transition +amount in subsection (12) is to be read as a reference +to “life insurance policies other than excluded poli- +cies”; and +(d) the amount included in the description of H in the +definition reserve transition amount in subsection +(12) is to be determined without reference to excluded +policies. +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +26 + +Page 40 +(12) The portion of subsection 138(18) of the Act +before the formula is replaced by the following: +Transition year income inclusion reversal +(18) If an amount has been included under subsection +(16) in computing an insurer’s income for its transition +year from an insurance business carried on by it, there +shall be deducted in computing the insurer’s income, for +each particular taxation year of the insurer that ends af- +ter the beginning of the transition year, from that insur- +ance business, the amount determined by the formula +(13) The description of A in subsection 138(18) of +the English version of the Act is replaced by the +following: +A +is the amount included under subsection (16) in +computing the insurer’s income for the transition +year from that insurance business; and +(14) The portion of subsection 138(19) of the Act +before the formula is replaced by the following: +Transition year income deduction reversal +(19) If an amount has been deducted under subsection +(17) in computing an insurer’s income for its transition +year from an insurance business carried on by it, there +shall be included in computing the insurer’s income, for +each particular taxation year of the insurer that ends af- +ter the beginning of the transition year, from that insur- +ance business, the amount determined by the formula +(15) The description of A in subsection 138(19) of +the English version of the Act is replaced by the +following: +A +is the amount deducted under subsection (17) in +computing the insurer’s income for the transition +year from that insurance business; and +(16) Subsection 138(20) of the Act is replaced by +the following: +Winding-up +(20) If an insurer has, in a winding-up to which subsec- +tion 88(1) has applied, been wound-up into another cor- +poration (referred to in this subsection as the “parent”), +and immediately after the winding-up the parent carries +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +26 + +Page 41 +on an insurance business, in applying subsections (18) +and (19) in computing the income of the insurer and of +the parent for particular taxation years that end on or af- +ter the first day (referred to in this subsection as the +“start day”) on which assets of the insurer were distribut- +ed to the parent on the winding-up, +(a) the parent is, on and after the start day, deemed to +be the same corporation as and a continuation of the +insurer in respect of +(i) any amount included under subsection (16) or +deducted under subsection (17) in computing the +insurer’s income from an insurance business for its +transition year, +(ii) any amount deducted under subsection (18) or +included under subsection (19) in computing the +insurer’s income from an insurance business for a +taxation year of the insurer that begins before the +start day, and +(iii) any amount that would — in the absence of this +subsection and if the insurer existed and carried on +an insurance business on each day that is the start +day or a subsequent day and on which the parent +carries on an insurance business — be required to +be deducted or included, in respect of any of those +days, under subsection (18) or (19) in computing +the insurer’s income from an insurance business; +and +(b) the insurer is, in respect of each of its particular +taxation years, to determine the value for B in the for- +mulas in subsections (18) and (19) without reference +to the start day and days after the start day. +(17) Subsection 138(21) of the Act is replaced by +the following: +Amalgamations +(21) If there is an amalgamation (within the meaning as- +signed by subsection 87(1)) of an insurer with one or +more other corporations to form one corporation (re- +ferred to in this subsection as the “new corporation”), +and immediately after the amalgamation the new corpo- +ration carries on an insurance business, in applying sub- +sections (18) and (19) in computing the income of the +new corporation for particular taxation years of the new +corporation that begin on or after the day on which the +amalgamation occurred, the new corporation is, on and +after that day, deemed to be the same corporation as and +a continuation of the insurer in respect of +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +26 + +Page 42 +(a) any amount included under subsection (16) or de- +ducted under subsection (17) in computing the insur- +er’s income from an insurance business for its transi- +tion year; +(b) any amount deducted under subsection (18) or in- +cluded under subsection (19) in computing the insur- +er’s income from an insurance business for a taxation +year that begins before the day on which the amalga- +mation occurred; and +(c) any amount that would — in the absence of this +subsection and if the insurer existed and carried on an +insurance business on each day that is the day on +which the amalgamation occurred or a subsequent day +and on which the new corporation carries on an insur- +ance business — be required to be deducted or includ- +ed, in respect of any of those days, under subsection +(18) or (19) in computing the insurer’s income from an +insurance business. +(18) The portion of subsection 138(22) of the Act +before paragraph (a) is replaced by the follow- +ing: +Application of subsection (23) +(22) Subsection (23) applies if, at any time, an insurer +(referred to in this subsection and subsection (23) as the +“transferor”) transfers, to a corporation (referred to in +this subsection and subsection (23) as the “transferee”) +that is related to the transferor, property in respect of an +insurance business carried on by the transferor (referred +to in this subsection and subsection (23) as the “trans- +ferred business”) and +(19) Paragraph 138(22)(b) of the Act is replaced +by the following: +(b) subsection 85(1) applies to the transfer, the trans- +fer includes all or substantially all of the property and +liabilities of the transferred business and, immediately +after the transfer, the transferee carries on an insur- +ance business. +(20) Subparagraph 138(23)(a)(iii) of the Act is re- +placed by the following: +(iii) any amount that would — in the absence of this +subsection and if the transferor existed and carried +on an insurance business on each day that includes +that time or is a subsequent day and on which the +transferee carries on an insurance business — be +required to be deducted or included, in respect of +any of those days, under subsection (18) or (19) in +computing the transferor’s income that can reason- +ably be attributed to the transferred business; and +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +26 + +Page 43 +(21) Subsection 138(24) of the Act is replaced by +the following: +Ceasing to carry on business +(24) If at any time an insurer ceases to carry on all or +substantially all of an insurance business (referred to in +this subsection as the “discontinued business”), and none +of subsections (20) to (22) apply, +(a) there shall be deducted, in computing the insurer’s +income from the discontinued business for the insur- +er’s taxation year that includes the time that is imme- +diately before that time, the amount determined by +the formula +A − B +where +A +is the amount included under subsection (16) in +computing the insurer’s income from the discon- +tinued business for its transition year, and +B +is the total of all amounts each of which is an +amount deducted under subsection (18) in com- +puting the insurer’s income from the discontinued +business for a taxation year that began before that +time; and +(b) there shall be included, in computing the insurer’s +income from the discontinued business for the insur- +er’s taxation year that includes the time that is imme- +diately before that time, the amount determined by +the formula +C − D +where +C +is the amount deducted under subsection (17) in +computing the insurer’s income from the discon- +tinued business for its transition year, and +D +is the total of all amounts each of which is an +amount included under subsection (19) in com- +puting the insurer’s income from the discontinued +business for a taxation year that began before that +time. +(22) Subsection 138(25) of the Act is replaced by +the following: +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +26 + +Page 44 +Ceasing to exist +(25) If at any time an insurer that carried on an insur- +ance business ceases to exist (otherwise than as a result +of a winding-up or amalgamation described in subsection +(20) or (21)), for the purposes of subsection (24), the in- +surer is deemed to have ceased to carry on the insurance +business at the earlier of +(a) the time (determined without reference to this +subsection) at which the insurer ceased to carry on the +insurance business, and +(b) the time that is immediately before the end of the +last taxation year of the insurer that ended at or before +the time at which the insurer ceased to exist. +(23) Subsection 138(26) of the Act is repealed. +(24) Subsections (1) to (23) apply to taxation +years that begin after 2022. +27 (1) The portion of subsection 138.1(1) of the +Act before paragraph (a) is replaced by the fol- +lowing: +Rules relating to segregated funds +138.1 (1) In respect of life insurance policies for which +all or any part of an insurer’s reserves vary in amount de- +pending on the fair market value of a specified group of +properties that is reported to a relevant authority (as de- +fined in subsection 138(12)) as a segregated fund (in this +section referred to as a “segregated fund”), for the pur- +poses of this Part, the following rules apply: +(2) Subsection 138.1(7) of the Act is replaced by +the following: +Non-application of subsections (1) to (6) +(7) Subsections (1) to (6) do not apply to the holder of a +segregated fund policy with respect to such a policy that +is issued or effected as or under a FHSA, pooled regis- +tered pension plan, registered pension plan, registered +retirement income fund, registered retirement savings +plan or TFSA. +(3) Subsection (1) applies to taxation years that +begin after 2022. +(4) Subsection (2) comes into force on April 1, +2023. +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 26-27 + +Page 45 +28 (1) The definition transition year in subsection +142.51(1) of the Act is replaced by the following: +transition year of a taxpayer means the taxpayer’s first +taxation year that begins after 2022. (année transitoire) +(2) Subsections 142.51(2) and (3) of the Act are re- +placed by the following: +Transition year income inclusion +(2) If a taxpayer is an insurer in its transition year, there +shall be included in computing the taxpayer’s income for +its transition year the absolute value of the negative +amount, if any, of the taxpayer’s transition amount. +Transition year income deduction +(3) If a taxpayer is an insurer in its transition year, there +shall be deducted in computing the taxpayer’s income for +its transition year the positive amount, if any, of the tax- +payer’s transition amount. +(3) The portion of subsection 142.51(4) of the Act +before the formula is replaced by the following: +Transition year income inclusion reversal +(4) If an amount has been included under subsection (2) +in computing a taxpayer’s income for its transition year, +there shall be deducted in computing the taxpayer’s in- +come for each particular taxation year of the taxpayer +that ends after the beginning of the transition year, and +in which particular taxation year the taxpayer is an insur- +er, the amount determined by the formula +(4) The portion of subsection 142.51(5) of the Act +before the formula is replaced by the following: +Transition year income deduction reversal +(5) If an amount has been deducted under subsection (3) +in computing a taxpayer’s income for its transition year, +there shall be included in computing the taxpayer’s in- +come, for each particular taxation year of the taxpayer +ending after the beginning of the transition year, and in +which particular taxation year the taxpayer is an insurer, +the amount determined by the formula +(5) The portion of subsection 142.51(6) of the Act +before paragraph (a) is replaced by the follow- +ing: +Winding-up +(6) If a taxpayer has, in a winding-up to which subsec- +tion 88(1) has applied, been wound-up into another +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +28 + +Page 46 +corporation (referred to in this subsection as the “par- +ent”), and immediately after the winding-up the parent is +an insurer, in applying subsections (4) and (5) in comput- +ing the income of the taxpayer and of the parent for par- +ticular taxation years that end on or after the first day +(referred to in this subsection as the “start day”) on +which assets of the taxpayer were distributed to the par- +ent on the winding-up, +(6) Subparagraph 142.51(6)(a)(iii) of the Act is re- +placed by the following: +(iii) any amount that would — in the absence of this +subsection and if the taxpayer existed and was an +insurer on each day that is the start day or a subse- +quent day and on which the parent is an insurer — +be required to be deducted or included, in respect +of any of those days, under subsection (4) or (5) in +computing the taxpayer’s income for its transition +year; and +(7) The portion of subsection 142.51(7) of the Act +before paragraph (a) is replaced by the follow- +ing: +Amalgamations +(7) If there is an amalgamation (within the meaning as- +signed by subsection 87(1)) of a taxpayer with one or +more other corporations to form one corporation (re- +ferred to in this subsection as the “new corporation”), +and immediately after the amalgamation the new corpo- +ration is an insurer, in applying subsections (4) and (5) in +computing the income of the new corporation for partic- +ular taxation years of the new corporation that begin on +or after the day on which the amalgamation occurred, the +new corporation is, on and after that day, deemed to be +the same corporation as and a continuation of the tax- +payer in respect of +(8) Paragraph 142.51(7)(c) of the Act is replaced +by the following: +(c) any amount that would — in the absence of this +subsection and if the taxpayer existed and was an in- +surer on each day that is the day on which the amalga- +mation occurred or a subsequent day and on which +the new corporation is an insurer — be required to be +deducted or included, in respect of any of those days, +under subsection (4) or (5) in computing the taxpay- +er’s income. +(9) Paragraph 142.51(8)(b) of the Act is replaced +by the following: +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +28 + +Page 47 +(b) subsection 85(1) applies to the transfer, the trans- +fer includes all or substantially all of the property and +liabilities of the transferred business and, immediately +after the transfer, the transferee is an insurer. +(10) Subparagraph 142.51(9)(a)(iii) of the Act is +replaced by the following: +(iii) any amount that would — in the absence of this +subsection and if the transferor existed and was an +insurer on each day that includes that time or is a +subsequent day and on which the transferee is an +insurer — be required to be deducted or included, +in respect of any of those days, under subsection (4) +or (5) in computing the transferor’s income that can +reasonably be attributed to the transferred busi- +ness; and +(11) Subsection 142.51(10) of the Act is repealed. +(12) The portion of subsection 142.51(11) of the +Act before paragraph (a) is replaced by the fol- +lowing: +Ceasing to carry on a business +(11) If at any time, a taxpayer ceases to be an insurer +(13) The portion of subsection 142.51(12) of the +Act before paragraph (b) is replaced by the fol- +lowing: +Ceasing to exist +(12) If at any time a taxpayer ceases to exist (otherwise +than as a result of a merger to which subsection 87(2) ap- +plies or a winding-up to which subsection 88(1) applies), +for the purposes of subsection (11), the taxpayer is +deemed to have ceased to be an insurer at the earlier of +(a) the time (determined without reference to this +subsection) at which the taxpayer ceased to be an in- +surer, and +(14) Section 142.51 of the Act is amended by +adding the following after subsection (12): +Application of subsection (13.1) +(13) Subsection (13.1) applies to a taxpayer for a particu- +lar taxation year of the taxpayer if +(a) the taxpayer holds a transition property in the par- +ticular taxation year; +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +28 + +Page 48 +(b) the property was a mark-to-market property of the +taxpayer for the taxation year preceding the particular +taxation year; and +(c) the property is not a mark-to-market property of +the taxpayer for the particular taxation year. +Ceasing to be mark-to-market property +(13.1) If this subsection applies to a taxpayer for a par- +ticular taxation year of the taxpayer, for purposes of this +section +(a) the taxpayer is deemed to have ceased to be an in- +surer at the particular time that is the beginning of the +particular taxation year; and +(b) the time immediately before the particular time +shall be deemed to be the end of the taxation year that +ends immediately before the particular taxation year. +(15) Subsections (1) to (14) apply to taxation +years that begin after 2022. +29 (1) Subsection 146(16) of the Act is amended +by striking out “or” at the end of paragraph (a.1) +and by adding the following after that paragraph: +(a.2) to a FHSA for the benefit of the transferor, if +subsection (8.3) would not apply to an amount in re- +spect of the property in the case that the property was +instead received by the transferor as a benefit out of or +under the registered retirement savings plan, or +(2) Paragraph 146(16)(d) of the Act is replaced by +the following: +(d) no deduction may be made under subsection (5), +(5.1) or (8.2) or section 8, 60 or 146.6 in respect of the +payment or transfer in computing the income of any +taxpayer, and +(3) Subsections (1) and (2) come into force on +April 1, 2023. +30 (1) Paragraph 146.3(2)(f) of the Act is amended +by striking out “or” at the end of subparagraph +(viii), by adding “or” at the end of subparagraph +(ix) and by adding the following after subpara- +graph (ix): +(x) a FHSA in accordance with subsection 146.6(7); +(2) Subsection (1) comes into force on April 1, +2023. +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 28-30 + +Page 49 +31 (1) The Act is amended by adding the follow- +ing after section 146.5: +Tax-Free First Home Savings +Account +Definitions +146.6 (1) The following definitions apply in this section. +annual FHSA limit of a taxpayer for a taxation year is +the least of +(a) the amount determined by the formula +A + B − C +where +A +is the total of all contributions made to a FHSA in +the year by the taxpayer (other than any contribu- +tions made after the taxpayer’s first qualifying +withdrawal from a FHSA), +B +is +(i) if the taxpayer’s maximum participation pe- +riod has not begun in a preceding taxation year, +nil, and +(ii) in any other case, the amount by which the +amount determined under this paragraph for +the preceding taxation year exceeds the annual +FHSA limit for that taxation year, and +C +is the total of all designated amounts described in +paragraph (b) of the definition designated +amount in subsection 207.01(1) for the year, +(b) the amount determined by the formula +$8,000 + D − (E − F − G) +where +D +is the amount of the FHSA carryforward for the +taxation year; +E +is the total of all amounts transferred in the year +or a preceding taxation year under paragraph +146(16)(a.2) to a FHSA under which the taxpayer +is the holder, and +F +is the total of all amounts, each of which is an +amount determined in respect of each preceding +taxation year that is +(i) if the taxpayer had not started their maxi- +mum participation period in the preceding tax- +ation year, nil, or +(ii) in any other case, the lesser of +(A) the amount determined by the formula +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +31 + +Page 50 +H − I +where +H +is the amount determined for E in the +preceding taxation year, and +I +is the amount determined for F in the +preceding taxation year, and +(B) $8,000 plus the amount of the FHSA car- +ryforward for the preceding taxation year, +and +G +is the total of all designated amounts described in +paragraph (a) of the definition designated +amount in subsection 207.01(1), and +(c) nil, if the taxation year is after the year in which +(i) the taxpayer’s maximum participation period +has ended, or +(ii) the taxpayer has died. (plafond annuel au titre +du CELIAPP) +beneficiary under a FHSA means an individual (includ- +ing an estate) or a qualified donee that has a right to re- +ceive a distribution from the FHSA after the death of the +holder of the FHSA. (bénéficiaire) +first home savings account or FHSA means an ar- +rangement registered with the Minister that has not +ceased to be a FHSA under subsection 146.6(16). +(compte d’épargne libre d’impôt pour l’achat d’une +première propriété ou CELIAPP ) +FHSA carryforward of a taxpayer for a taxation year is +the least of +(a) $8,000, +(b) the amount determined by the formula +A − B +where +A +is the amount determined in paragraph (b) of the +definition annual FHSA limit for the preceding +taxation year, and +B +is the amount determined in paragraph (a) of the +definition annual FHSA limit for the preceding +taxation year, and +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +31 + +Page 51 +(c) nil, if the taxpayer had not started their maximum +participation period prior to the taxation year. (mon- +tant des cotisations reporté) +holder of an arrangement means +(a) until the death of the individual who entered into +the arrangement, the individual; and +(b) after the death of the individual, the individual’s +survivor, if the survivor is designated under the ar- +rangement to become a successor of the holder and is +a qualifying individual. (titulaire) +issuer of an arrangement means the person described as +the issuer in the definition qualifying arrangement. +(émetteur) +maximum participation period of an individual means +the period that +(a) begins when an individual first enters into a quali- +fying arrangement; and +(b) ends at the end of the year following the year in +which the earliest of the following events occur: +(i) the 14th anniversary of the date the individual +first enters into a qualifying arrangement, +(ii) the individual attains 70 years of age, and +(iii) the individual first makes a qualifying with- +drawal from a FHSA. (période de participation +maximale) +non-qualified investment has the same meaning as in +subsection 207.01(1). (placement non admissible) +qualified investment has the same meaning as in sub- +section 207.01(1). (placement admissible) +qualifying arrangement, at a particular time, means an +arrangement +(a) that is entered into after March 2023 between a +person (in this definition referred to as the “issuer”) +and a qualifying individual; +(b) that is +(i) an arrangement in trust with an issuer that is a +corporation licensed or otherwise authorized under +the laws of Canada or a province to carry on in +Canada the business of offering to the public its ser- +vices as trustee, +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +31 + +Page 52 +(ii) an annuity contract with an issuer that is a li- +censed annuities provider, or +(iii) a deposit with an issuer that is +(A) a person that is, or is eligible to become, a +member of the Canadian Payments Association, +or +(B) a credit union that is a shareholder or mem- +ber of a body corporate referred to as a “central” +for the purposes of the Canadian Payments Act; +(c) that provides for contributions to be made under +the arrangement to the issuer in consideration of, or to +be used, invested or otherwise applied for the purpose +of, the issuer making distributions under the arrange- +ment to the holder; +(d) under which the issuer and the qualifying individ- +ual agree, at the time the arrangement is entered into, +that the issuer will file with the Minister an election to +register the arrangement as a FHSA, in the prescribed +form and manner under the Social Insurance Number +of the qualifying individual with whom the arrange- +ment was entered into; and +(e) that, at all times throughout the period that begins +at the time the arrangement is entered into and that +ends at the particular time, complies with the condi- +tions in subsection (2). (arrangement admissible) +qualifying home means +(a) a housing unit located in Canada; or +(b) a share of the capital stock of a cooperative hous- +ing corporation, the holder of which is entitled to pos- +session of a housing unit located in Canada, except +that, where the context so requires, a reference to a +share with a right to possession of a housing unit de- +scribed means the housing unit to which the share re- +lates. (habitation admissible) +qualifying individual, at a particular time, means an in- +dividual who +(a) is a resident of Canada; +(b) is at least 18 years of age; and +(c) did not, at any prior time in the calendar year or in +the preceding four calendar years, inhabit as a princi- +pal place of residence a qualifying home (or what +would be a qualifying home if it were located in +Canada) that was owned, whether jointly with another +person or otherwise, by +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +31 + +Page 53 +(i) the individual, or +(ii) a person who is the spouse or common-law +partner of the individual at the particular time. +(particulier déterminé) +qualifying withdrawal of an individual means an +amount received at a particular time by the individual as +a benefit out of or under a FHSA if +(a) the amount is received as a result of the individu- +al’s written request in prescribed form in which the in- +dividual sets out the location of a qualifying home that +the individual has begun, or intends not later than one +year after its acquisition by the individual to begin, us- +ing as a principal place of residence; +(b) the individual +(i) is a resident of Canada throughout the period +that begins at the particular time and ends at the +earlier of the time of the individual’s death and the +time at which the individual acquires the qualifying +home, and +(ii) does not have an owner-occupied home within +the meaning of paragraph 146.01(2)(a.1) in the peri- +od +(A) that begins at the beginning of the fourth +preceding calendar year that ended before the +particular time, and +(B) that ends on the 31st day before the particu- +lar time; +(c) the individual entered into an agreement in writ- +ing before the particular time for the acquisition or +construction of the qualifying home before October 1 +of the calendar year following the year in which the +amount was received; and +(d) the individual did not acquire the qualifying home +more than 30 days before the particular time. (retrait +admissible) +survivor of a qualifying individual means another indi- +vidual who is, immediately before the qualifying individ- +ual’s death, a spouse or common-law partner of the qual- +ifying individual. (survivant) +Qualifying arrangement conditions +(2) For the purposes of paragraph (e) of the definition +qualifying arrangement in subsection (1), the condi- +tions are as follows: +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +31 + +Page 54 +(a) the arrangement requires that it be maintained for +the exclusive benefit of the holder (determined with- +out regard to any right of a person to receive a pay- +ment out of or under the arrangement only on or after +the death of the holder); +(b) the arrangement prohibits, while there is a holder +of the arrangement, anyone that is neither the holder +nor the issuer of the arrangement from having rights +under the arrangement relating to the amount and +timing of distributions and the investing of funds; +(c) the arrangement prohibits anyone other than the +holder from making contributions under the arrange- +ment; +(d) the arrangement permits distributions to be made +to reduce the amount of tax otherwise payable by the +holder under section 207.021; +(e) the arrangement provides that, at the direction of +the holder, the issuer shall transfer all or any part of +the property held in connection with the arrangement +(or an amount equal to its value) to another FHSA of +the holder or to an RRSP or a RRIF under which the +holder is the annuitant; +(f) if the arrangement is an arrangement in trust, it +prohibits the trust from borrowing money or other +property for the purposes of the arrangement; +(g) the arrangement provides that it ceases to be a +FHSA after the end of the holder’s maximum partici- +pation period; +(h) the arrangement, if it involves an issuer described +in subparagraph (b)(iii) of the definition qualifying +arrangement in subsection (1), includes provisions +stipulating that the issuer has no right of offset with +respect to the property held under the arrangement in +connection with any debt or obligation owing to the is- +suer; and +(i) the arrangement meets prescribed conditions. +Trust not taxable +(3) No tax is payable under this Part by a trust that is +governed by a FHSA on its taxable income for a taxation +year, except that, if at any time in the taxation year, it +carries on one or more businesses or holds one or more +properties that are non-qualified investments for the +trust, tax is payable under this Part by the trust on the +amount that would be its taxable income for the taxation +year if it had no incomes or losses from sources other +than those businesses and properties, and no capital +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +31 + +Page 55 +gains or capital losses other than from dispositions of +those properties, and for that purpose, +(a) income includes dividends described in section 83; +(b) the trust’s taxable capital gain or allowable capital +loss from the disposition of a property is equal to its +capital gain or capital loss, as the case may be, from +the disposition; and +(c) the trust’s income shall be computed without ref- +erence to subsection 104(6). +Carrying on a business +(4) If tax is payable under this Part for a taxation year by +application of subsection (3) by a trust that is governed +by a FHSA that carries on one or more businesses at any +time in the taxation year, +(a) the holder of the FHSA is jointly and severally, or +solidarily, liable with the trust to pay each amount +payable under this Act by the trust that is attributable +to that business or those businesses; and +(b) the issuer’s liability at any time for amounts +payable under this Act in respect of that business or +those businesses may not exceed the total of +(i) the amount of property of the trust that the is- +suer is in possession or control of at that time in its +capacity as legal representative of the trust, and +(ii) the total amount of all distributions of property +from the trust on or after the date that the notice of +assessment was sent in respect of the taxation year +and before that time. +FHSA deduction +(5) There may be deducted in computing a taxpayer’s in- +come for a taxation year an amount not exceeding the +lesser of +(a) the amount determined by the formula +A − B +where +A +is the total of all amounts each of which is the tax- +payer’s annual FHSA limit for the year and each +preceding taxation year, and +B +is the total of all amounts each of which is an +amount deducted under this subsection in +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +31 + +Page 56 +computing the individual’s income for preceding +taxation years, and +(b) the amount by which $40,000 exceeds the total of +(i) the amount determined for B in paragraph (a), +and +(ii) all amounts transferred in the year or a preced- +ing taxation year under paragraph 146(16)(a.2) to a +FHSA under which the taxpayer is the holder. +Withdrawals included in income +(6) There shall be included in computing the income of a +taxpayer for a taxation year the total of all amounts re- +ceived by the taxpayer in the year out of or under a FHSA +of which the taxpayer is the holder, other than an amount +that is +(a) a qualifying withdrawal; +(b) a designated amount as defined in subsection +207.01(1); or +(c) otherwise included in computing the income of the +taxpayer. +Transfer of amounts +(7) Subsection (8) applies to an amount transferred at a +particular time from a FHSA (in this subsection referred +to as the “transferor FHSA”) if the following conditions +are met: +(a) the amount is transferred on behalf of an individu- +al who is +(i) the holder of the transferor FHSA, +(ii) a spouse or common-law partner or former +spouse or common-law partner of the holder of the +transferor FHSA and who is entitled to the amount +under a decree, order or judgment of a competent +tribunal, or under a written agreement, relating to a +division of property between the holder and the in- +dividual, in settlement of rights arising out of, or on +a breakdown of, their marriage or common-law +partnership, or +(iii) entitled to the amount as a consequence of the +death of the holder of the transferor FHSA and was +a spouse or common-law partner of the holder im- +mediately before the death; +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +31 + +Page 57 +(b) the amount is transferred directly to +(i) another FHSA of the individual, or +(ii) an RRSP or a RRIF under which the individual +is the annuitant; and +(c) if the transfer is not made to another FHSA of the +holder of the transferor FHSA, the amount does not +exceed the amount determined by the formula +A − B +where +A +is the amount that is the total fair market value, +immediately before the particular time, of all +property held by a FHSA under which the holder +of the transferor FHSA is a holder, and +B +is the excess FHSA amount (as defined in sub- +section 207.01(1)) of the holder of the transferor +FHSA at the particular time. +Tax-free transfer +(8) If this subsection applies to an amount transferred +from a FHSA, +(a) the amount shall not, by reason only of the trans- +fer, be included in computing the income of any tax- +payer; and +(b) no deduction may be made under this Part in re- +spect of the amount in computing the income of any +taxpayer. +Taxable transfer +(9) If an amount is transferred from a FHSA to a plan or +fund (in this subsection referred to as the “transferee +plan”) that is a FHSA, RRSP or RRIF and subsection (8) +does not apply to the amount transferred, +(a) the amount is deemed to have been received from +the FHSA by the holder of the FHSA; +(b) the holder or annuitant of the transferee plan is +deemed to have paid the amount as a contribution or +premium to the transferee plan; and +(c) in the case that the transferee plan is a RRIF, for +the purposes of subsection 146(5) and Part X.1, the an- +nuitant of the transferee plan is deemed to have paid +the amount at the time of the transfer as a premium +under a RRSP under which the annuitant is the annui- +tant (as defined in subsection 146(1)). +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +31 + +Page 58 +Apportionment of transferred amount +(10) If an amount is transferred from a FHSA to another +FHSA, or to a RRSP or RRIF, and a portion but not all of +the amount is transferred in accordance with subsection +(7), +(a) subsection (8) applies to the portion of the amount +transferred in accordance with subsection (7), and +(b) subsection (9) applies with respect to the remain- +der of the amount. +Security for loan +(11) If at any time in a taxation year a trust governed by +a FHSA uses or permits to be used any property of the +trust as security for a loan, the fair market value of the +property at the time it commenced to be so used shall be +included in computing the income for the year of the +holder of the FHSA at that time. +Recovery of property used as security +(12) If in a taxation year a property described in subsec- +tion (11) ceases to be used as security for a loan, there +may be deducted, in computing the income of the holder +of the relevant FHSA for the taxation year, an amount +equal to the amount determined by the formula +A − B +where +A +is the amount included by application of subsection +(11) in computing the income of the holder as a con- +sequence of the property being used as security for a +loan; and +B +is the net loss (exclusive of payments by the trust as +or on account of interest) sustained by the trust in +consequence of its using the property, or permitting +it to be used, as security for the loan and not as a re- +sult of a change in the fair market value of the prop- +erty. +Successor holder +(13) If the holder of a FHSA dies and the holder’s sur- +vivor is designated as the successor holder of the FHSA, +the survivor is, immediately after the time of death, +deemed to have entered into a new qualifying arrange- +ment in respect of the FHSA unless +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +31 + +Page 59 +(a) the survivor is a qualifying individual and the bal- +ance of the FHSA is transferred to a RRSP or a RRIF +of the survivor, or distributed to the survivor in accor- +dance with subsection (14), by the end of the year fol- +lowing the year of death; or +(b) the survivor is not a qualifying individual, in which +case the balance of the FHSA is to be transferred to a +RRSP or a RRIF of the survivor, or distributed to the +survivor in accordance with subsection (14), by the +end of the year following the year of death. +Distribution on death +(14) If, as a consequence of the death of the holder of a +FHSA, an amount is distributed in a taxation year from +the FHSA to, or on behalf of, a beneficiary, the amount +shall be included in computing the beneficiary’s income +for the year. +Deemed transfer or distribution +(15) If an amount is distributed at any time from the +FHSA of a deceased holder to the holder’s legal represen- +tative and a survivor of the holder is entitled to all or a +portion of the amount in full or partial satisfaction of the +survivor’s rights as a person beneficially interested under +the deceased’s estate, the following rules apply: +(a) if a payment is made from the estate to a FHSA, +RRSP or RRIF of the survivor, the payment is deemed +to be a transfer from the FHSA to the extent that +(i) it is so designated jointly by the legal represen- +tative and the survivor in prescribed form filed with +the Minister, and +(ii) it meets the conditions to be a transferred +amount under subsections (7) to (10); +(b) if a payment is made from the estate to the sur- +vivor, the payment is deemed for the purposes of sub- +section (14) to be a distribution to the survivor as a +beneficiary to the extent that it is so designated jointly +by the legal representative and the survivor in pre- +scribed form filed with the Minister; and +(c) for the purposes of subsection (14), the amount +distributed to the legal representative from the FHSA +is deemed to be reduced by the amounts designated in +paragraphs (a) and (b). +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +31 + +Page 60 +Arrangement ceasing to be a FHSA +(16) An arrangement that was filed with the Minister as +a FHSA ceases to be a FHSA at +(a) subject to paragraph (b), the earliest of the follow- +ing times: +(i) the end of the maximum participation period of +the last holder, +(ii) the end of the year following the year of the +death of the last holder, +(iii) the time at which the arrangement ceases to be +a qualifying arrangement, or +(iv) the time at which the arrangement is not ad- +ministered in accordance with the conditions in +subsection (2); or +(b) a later time specified by the Minister in writing. +Rules applicable on FHSA cessation +(17) If an arrangement ceases at a particular time to be a +FHSA, +(a) subsection (3) does not apply to exempt the trust +governed by the arrangement from tax under this Part +on the taxable income of the trust earned after the +particular time; +(b) if the taxpayer who was the holder under the ar- +rangement is not deceased at the particular time, an +amount equal to the fair market value of all property +of the arrangement immediately before the particular +time is to be included in the taxpayer’s income for the +taxation year that includes the particular time; and +(c) if the last holder is deceased at the particular time, +each beneficiary of the FHSA shall include in their in- +come, for the taxation year that includes the particular +time, the proportion of the fair market value of all +property of the arrangement immediately before the +particular time that the beneficiary is entitled to. +Regulations +(18) The Governor in Council may make regulations re- +quiring issuers of FHSAs to file information returns in +respect of FHSAs. +(2) Subsection (1) comes into force on April 1, +2023. +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +31 + +Page 61 +32 (1) Subsection 148(1) of the Act is amended by +adding the following after paragraph (b.3): +(b.4) a FHSA, +(2) Subsection (1) comes into force on April 1, +2023. +33 (1) Subsection 149(1) of the Act is amended by +adding the following after paragraph (u.3): +FHSA trust +(u.4) a trust governed by a FHSA to the extent provid- +ed by section 146.6; +(2) Subsection (1) comes into force on April 1, +2023. +34 (1) The definition disbursement quota in sub- +section 149.1(1) of the Act is replaced by the fol- +lowing: +disbursement quota, for a taxation year of a registered +charity, means the amount determined by the formula +A ÷ 365 × B +where +A +is the number of days in the taxation year, and +B +is +(a) 3.5% of the prescribed amount for the year, in +respect of all or a portion of a property owned by +the charity at any time in the 24 months immedi- +ately preceding the taxation year that was not +used directly in charitable activities or administra- +tion, if the prescribed amount is equal to or less +than $1 million but greater than +(i) if the registered charity is a charitable orga- +nization, $100,000, and +(ii) in any other case, $25,000, +(b) if the prescribed amount for the year in re- +spect of all or a portion of a property owned by the +charity at any time in the 24 months immediately +preceding the taxation year that was not used di- +rectly in charitable activities or administration is +greater than $1 million, $35,000 plus 5% of the +amount by which the prescribed amount ex- +ceeds $1 million, and +(c) in any other case, nil; (contingent des verse- +ments) +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 32-34 + +Page 62 +(2) Subsection 149.1(1.1) of the Act is amended by +striking out “and” at the end of paragraph (a), by +adding “and” at the end of paragraph (c) and by +adding the following after paragraph (c): +(d) expenditures on administration and management +of the charity. +(3) Paragraph 149.1(4.1)(d) of the English version +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 qualifying disbursements to quali- +fied donees or grantee organizations, with which it +deals at arm’s length; +(4) Subsection 149.1(5) of the Act is replaced by +the following: +Reduction +(5) The Minister may, on application made to the Minis- +ter in prescribed form by a registered charity, specify an +amount in respect of the charity for a taxation year and +the registered charity’s disbursement quota shall be +deemed to be reduced by that amount. +(5) Subsection 149.1(8) of the Act is repealed. +(6) Subsections (1), (2) and (4) apply to taxation +years beginning on or after January 1, 2023. +(7) Subsection (3) is deemed to have come into +force on June 23, 2022. +(8) Subsection (5) applies in respect of applica- +tions made on or after January 1, 2023. +35 (1) The portion of subsection 150(1.1) of the +Act before paragraph (a) is replaced by the fol- +lowing: +Exception +(1.1) Subject to subsection (1.2), subsection (1) does not +apply to a taxation year of a taxpayer if +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 34-35 + +Page 63 +(2) Section 150 of the Act is amended by adding +the following after subsection (1.1): +Exception — trusts +(1.2) Subsection (1.1) does not apply to a taxation year of +a trust if the trust is resident in Canada and is an express +trust, or for civil law purposes a trust other than a trust +that is established by law or by judgement, unless the +trust +(a) had been in existence for less than three months at +the end of the year; +(b) holds assets with a total fair market value that +does not exceed $50,000 throughout the year, if the on- +ly assets held by the trust throughout the year are one +or more of +(i) money, +(ii) a debt obligation described in paragraph (a) of +the definition fully exempt interest in subsection +212(3), +(iii) a share, debt obligation or right listed on a des- +ignated stock exchange, +(iv) a share of the capital stock of a mutual fund +corporation, +(v) a unit of a mutual fund trust, +(vi) an interest in a related segregated fund trust +(within the meaning assigned by paragraph +138.1(1)(a)), and +(vii) an interest as a beneficiary under a trust, all +the units of which are listed on a designated stock +exchange; +(c) is required under the relevant rules of professional +conduct or the laws of Canada or a province to hold +funds for the purposes of the activity that is regulated +under those rules or laws, provided the trust is not +maintained as a separate trust for a particular client or +clients; +(d) is a registered charity; +(e) is a club, society or association described in para- +graph 149(1)(l); +(f) is a mutual fund trust; +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +35 + +Page 64 +(g) is, for greater certainty, a related segregated fund +trust, within the meaning assigned by paragraph +138.1(1)(a); +(h) is a trust, all the units of which are listed on a des- +ignated stock exchange; +(i) is prescribed to be a master trust; +(j) is, for greater certainty, a graduated rate estate; +(k) is a qualified disability trust, as defined in sub- +section 122(3); +(l) is an employee life and health trust; +(m) is a trust described under paragraph 81(1)(g.3); +(n) is a trust under or governed by +(i) a deferred profit sharing plan, +(ii) a pooled registered pension plan, +(iii) a registered disability savings plan, +(iv) a registered education savings plan, +(v) a registered pension plan, +(vi) a registered retirement income fund, +(vii) a registered retirement savings plan, +(viii) a tax-free savings account, +(ix) an employee profit sharing plan, +(x) a registered supplementary unemployment +benefit plan, or +(xi) a first home savings account; or +(o) is a cemetery care trust or a trust governed by an +eligible funeral arrangement. +Bare trusts and arrangements — inclusion +(1.3) For the purposes of this section, a trust includes an +arrangement under which a trust can reasonably be con- +sidered to act as agent for all the beneficiaries under the +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +35 + +Page 65 +trust with respect to all dealings with all of the trust’s +property. +Solicitor-client privilege +(1.4) For greater certainty, subsections (1.1) to (1.3) do +not require the disclosure of information that is subject +to solicitor-client privilege. +(3) Subsections (1) and (2) apply to taxation years +that end after December 30, 2023. +36 (1) Subsection 152(1.11) of the Act is replaced +by the following: +Determination under subsection 245(2) +(1.11) If at any time the Minister ascertains the tax con- +sequences to a taxpayer because of subsection 245(2) +with respect to a transaction, the Minister +(a) shall, in the case of a determination under subsec- +tion 245(8), determine any amount that is, or could at +a subsequent time be, relevant for the purposes of +computing the income, taxable income or taxable in- +come earned in Canada of, tax or other amount +payable by, or amount refundable to, the taxpayer un- +der this Act; +(b) may, in any case not described in paragraph (a), +determine any amount referred to in paragraph (a); +and +(c) shall, if a determination is made under this sub- +section, send to the taxpayer, with all due dispatch, a +notice of determination stating the amount so deter- +mined. +(2) Paragraph 152(4)(b) of the Act is amended by +adding the following after subparagraph (v): +(v.1) is made in respect of an amount deducted un- +der subsection 127(5) in respect of a flow-through +critical mineral mining expenditure as defined in +subsection 127(9), +(3) Subsection (1) applies in respect of determi- +nations made on or after April 7, 2022. For greater +certainty, determinations made under subsec- +tion 152(1.11) of the Act prior to April 7, 2022 con- +tinue to be binding, to the extent provided under +subsection 152(1.3) of the Act. +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 35-36 + +Page 66 +(4) Subsection (2) is deemed to have come into +force on April 7, 2022. +37 (1) Subsection 153(1) of the Act is amended by +striking out “or” at the end of paragraph (t), by +adding “or” at the end of paragraph (u) and by +adding the following after paragraph (u): +(v) a payment out of or under +(i) a FHSA, if the amount is required by section +146.6 to be included in computing a taxpayer’s in- +come, or +(ii) an arrangement that ceased to be a FHSA by +application of subsection 146.6(16) +(2) Subsection (1) comes into force on April 1, +2023. +38 (1) Section 160 of the Act is amended by +adding the following before subsection (1): +Interpretation +(0.1) In this section and section 160.01, a transaction in- +cludes an arrangement or event. +(2) Paragraph 160(1)(d) of the French version of +the Act is replaced by the following: +d) le bénéficiaire du transfert et l’auteur du transfert +sont solidairement responsables du paiement d’une +partie de l’impôt de l’auteur du transfert en vertu de la +présente partie pour chaque année d’imposition égale +à l’excédent de l’impôt pour l’année sur ce que cet im- +pôt aurait été sans l’application des articles 74.1 à 75.1 +de la présente loi et de l’article 74 de la Loi de l’impôt +sur le revenu, chapitre 148 des Statuts revisés du +Canada de 1952, à l’égard de tout revenu tiré des biens +ainsi transférés ou des biens y substitués ou à l’égard +de tout gain tiré de la disposition de tels biens; +(3) The portion of paragraph 160(1)(e) of the +French version of the Act before subparagraph +(i) is replaced by the following: +e) le bénéficiaire du transfert et l’auteur du transfert +sont solidairement responsables du paiement en vertu +de la présente loi d’un montant égal au moins élevé +des montants suivants : +(4) Section 160 of the Act is amended by adding +the following after subsection (4): +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 36-38 + +Page 67 +Anti-avoidance rules +(5) For the purposes of subsections (1) to (4), if a person +(referred to in this section as the “transferor”) has trans- +ferred property either directly or indirectly, by means of +a trust or by any other means whatever to another person +(referred to in this section as the “transferee”) in a trans- +action or as part of a series of transactions +(a) the transferor is deemed to not be dealing at arm’s +length with the transferee at all times in the transac- +tion or series of transactions if +(i) at any time during the period beginning imme- +diately prior to the transaction or series of transac- +tions and ending immediately after the transaction +or series of transactions, the transferor and trans- +feree do not deal at arm’s length, 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 trans- +feror 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 (2) for that amount) +is deemed to have become payable in the taxation year +in which the property was transferred if it is reason- +able to conclude that one of the purposes for the trans- +fer of property is to avoid the payment of a future +amount payable under this Act by the transferor or +transferee; and +(c) the amount determined under subparagraph +(1)(e)(i) is deemed to be the greater of +(i) the amount otherwise determined under that +subparagraph 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 +(A) the lowest fair market value of the con- +sideration (that is held by the transferor) +given for the property at any time during the +period beginning immediately prior to the +transaction or series of transactions and +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +38 + +Page 68 +ending immediately after the transaction or +series of transactions, or +(B) if the consideration is in a form that is +cancelled or extinguished during the period +referred to in clause (A), +(I) the amount that is the lowest of the +amount determined in clause (A) and the +fair market value during the period of any +property, other than property that is can- +celled or extinguished during the period, +that is substituted for the consideration +referred to in clause (A), or +(II) if there is no property that is substi- +tuted for the consideration referred to in +clause (A), other than property cancelled +or extinguished during the period, nil. +(5) Subsections (1) to (4) are deemed to have +come into force on April 19, 2021. +39 (1) The Act is amended by adding the follow- +ing after section 160: +Definitions +160.01 (1) The following definitions apply in this sec- +tion. +gross entitlements of a person at any time, in respect +of a planning activity of the person, means all amounts to +which the person, or another person not dealing at arm’s +length with the person, is entitled, either before or after +that time and either absolutely or contingently, to receive +or obtain in respect of the activity. (droits à paiement) +person includes a partnership. (personne) +planning activity has the same meaning as in subsec- +tion 163.2(1). (activité de planification) +section 160 avoidance planning by a person, means +planning activity in respect of a transaction or series of +transactions that +(a) is, or is part of, a section 160 avoidance transac- +tion; and +(b) one of the purposes of the transaction or series of +transactions is to +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 38-39 + +Page 69 +(i) reduce a transferee’s joint and several, or sol- +idary, liability for tax owing under this Act by the +transferor (or that would be owing by the transferor +if not for a tax attribute transaction), or +(ii) reduce the person’s or another person’s ability +to pay any amount owing, or that may become ow- +ing, under this Act. (planification d’évitement en +vertu de l’article 160) +section 160 avoidance transaction means a transac- +tion or series of transactions in respect of which +(a) the conditions set out in paragraph 160(5)(a) or (b) +are met; or +(b) if subsection 160(5) applied to the transaction or +series of transactions, the amount determined under +subparagraph 160(5)(c)(ii) would exceed the amount +determined under subparagraph 160(5)(c)(i). (opéra- +tion d’évitement en vertu de l’article 160) +tax attribute means a balance, pool or other amount de- +termined under this Act that is or may be relevant in +computing income or in determining a taxpayer’s liability +for tax under this Act in any taxation year and includes +(a) a capital loss, non-capital loss, restricted farm loss, +farm loss and limited partnership loss; +(b) an amount that is deductible in computing a per- +son’s income; +(c) any balance of undeducted outlays, expenses or +other amounts; +(d) paid-up capital in respect of a share of any class of +the capital stock of a corporation; +(e) cost or capital cost of a property; +(f) an amount deductible from an amount otherwise +payable under this Act; and +(g) an amount that is deemed to have been remitted +as an amount payable under this Act. (attribut fiscal) +tax attribute transaction means a transaction or series +of transactions in which a tax attribute – of a person that +dealt at arm’s length with a transferor or transferee im- +mediately before the transaction or series of transactions +– is used, directly or indirectly, to provide a tax benefit +for the transferor or transferee (or, if either the transfer- +or or transferee is amalgamated with another corpora- +tion, the new corporation within the meaning assigned by +subsection 87(1)). (opération d’attribut fiscal) +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +39 + +Page 70 +tax benefit has the same meaning as in subsection +163.2(1). (avantage fiscal) +transferee has the meaning assigned by subsections +160(1) and (5). (bénéficiaire du transfert) +transferor has the meaning assigned by subsections +160(1) and (5). (auteur du transfert) +Penalty +(2) Every person that engages in, participates in, assents +to or acquiesces in planning activity that they know is +section 160 avoidance planning, or would reasonably be +expected to know is section 160 avoidance planning, but +for circumstances amounting to gross negligence is liable +to a penalty that is the lesser of +(a) 50% of the amount payable under this Act (deter- +mined without reference to this subsection), the joint +and several, or solidary, liability for which was sought +to be avoided through the planning, and +(b) the total of $100,000 and the person’s gross entitle- +ments at the time at which the notice of assessment of +the penalty is sent to the person in respect of the plan- +ning. +Clerical or secretarial services +(3) Subsection (2) does not apply to a person solely be- +cause the person provided clerical services or secretarial +services with respect to the planning. +(2) Subsection (1) is deemed to apply in respect +of a transaction or a series of transactions that +occurs, all or in part, after April 18, 2021. +40 (1) Section 160.2 of the Act is amended by +adding the following after subsection (2.2): +Joint and several liability — FHSA +(2.3) If an amount required to be included in the income +of a holder of a FHSA because of section 146.6 is received +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 39-40 + +Page 71 +by a taxpayer other than the holder, that taxpayer is +jointly and severally, or solidarily, liable with the holder +to pay a part of the holder’s tax under this Part for the +taxation year in which the amount is received equal to +the amount by which the holder’s tax for the year exceeds +the amount that would be the holder’s tax for the year if +the amount had not been received, but nothing in this +subsection limits the liability of the holder under any +other provision of this Act or of the taxpayer for the in- +terest that the taxpayer is liable to pay under this Act on +an assessment in respect of the amount that the taxpayer +is liable to pay because of this subsection. +(2) Subsection 160.2(4) of the Act is replaced by +the following: +Rules applicable +(4) If a taxpayer and an annuitant or holder have, by +virtue of subsection (1), (2) or (2.3), become jointly and +severally, or solidarily, liable in respect of part or all of a +liability of the annuitant or holder under this Act, the fol- +lowing rules apply: +(a) a payment by the taxpayer on account of the tax- +payer’s liability shall to the extent thereof discharge +their liability; but +(b) a payment by the annuitant or holder on account +of the liability of the annuitant or holder discharges +the taxpayer’s liability only to the extent that the pay- +ment operates to reduce the liability of the annuitant +or holder to an amount less than the amount in re- +spect of which the taxpayer was, by subsection (1), (2) +or (2.3), as the case may be, made jointly and several- +ly, or solidarily, liable. +(3) Subsections (1) and (2) come into force on +April 1, 2023. +41 (1) Paragraphs 161(1)(a) to (b) of the Act are +replaced by the following : +(a) the total of the taxpayer’s taxes payable under this +Part and Parts I.3, VI, VI.1 and VI.2 (determined in ac- +cordance with subsection 191.5(9)) for the year +exceeds +(b) the total of all amounts each of which is an +amount paid at or before that time on account of the +taxpayer’s tax payable and applied as at that time by +the Minister against the taxpayer’s liability for an +amount payable under this Part or Part I.3, VI, VI.1 or +VI.2 for the year, +(2) Subsection (1) applies to the 2022 and subse- +quent taxation years. +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 40-41 + +Page 72 +False statement or omission — trust return +42 (1) Section 163 of the Act is amended by +adding the following after subsection (4): +False statement or omission +(5) A person or partnership is liable to a penalty if the +person or partnership +(a) knowingly or under circumstances amounting to +gross negligence +(i) makes — or participates in, assents to or acqui- +esces in, the making of — a false statement or omis- +sion in a return of income of a trust that is not sub- +ject to one of the exceptions listed in paragraphs +150(1.2)(a) to (o) for a taxation year, or +(ii) fails to file a return described in subparagraph +(i); or +(b) fails to comply with a demand under subsection +150(2) or 231.2(1) to file a return described in subpara- +graph (a)(i). +False statement or omission — trust return +(6) The amount of the penalty to which the person or +partnership is liable under subsection (5) is equal to the +greater of +(a) $2,500, and +(b) 5% of the highest amount at any time in the year +that is equal to the total fair market value of all the +property held by the trust referred to in subsection (5) +at that time. +(2) Subsection (1) applies to taxation years that +end after December 30, 2023. +43 (1) Subsection 181(2) of the Act is replaced by +the following: +Prescribed expressions +(2) For the purposes of this Part, the expressions at- +tributed surplus, Canadian assets, Canadian premi- +ums, Canadian reserve liabilities, contractual service +margin, group of insurance contracts, group of rein- +surance contracts, permanent establishment, policy- +holders’ liabilities, reinsurance contract held amount, +total assets, total premiums and total reserve liabili- +ties have such meanings as may be prescribed. +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 42-43 + +Page 73 +(2) Subsection (1) applies to taxation years that +begin after 2022. +44 (1) Paragraphs 181.3(3)(b) and (c) of the Act +are replaced by the following: +(b) in the case of an insurance corporation that was +resident in Canada at any time in the year and carried +on a life insurance business at any time in the year, the +amount determined by the formula +A + B + (0.9 × C) − (0.9 × D) − E +where +A +is the amount of the corporation’s long-term debt +at the end of the year, +B +is the total amount, at the end of the year, of the +corporation’s +(i) capital stock (or, in the case of an insurance +corporation incorporated without share capital, +the amount of its members’ contributions), +(ii) retained earnings, +(iii) accumulated other comprehensive income, +(iv) policyholders’ liabilities, +(v) contributed surplus, and +(vi) any other surpluses, +C +is the total of all amounts each of which is the con- +tractual service margin for a group of insurance +contracts of the corporation at the end of the year +other than a group of segregated fund policies, +D +is the total of all amounts each of which is the +amount, in respect of a group of reinsurance con- +tracts held by the corporation at the end of the +year, that is +(i) if no portion of the contractual service mar- +gin for the group is in respect of a risk under a +segregated fund policy, the contractual service +margin for the group, and +(ii) in any other case, the amount that would be +the contractual service margin for the group if +the contractual service margin were deter- +mined excluding any portion of the contractual +service margin that is in respect of the reinsur- +ance of risks under segregated fund policies, +and +E +is the amount of any deficit deducted in comput- +ing the shareholders’ equity (including, for this +purpose, the amount of any provision for the re- +demption of preferred shares) at the end of the +year; +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 43-44 + +Page 74 +(c) in the case of an insurance corporation that was +resident in Canada at any time in the year and +throughout the year did not carry on a life insurance +business, the amount determined by the formula +A + B + (0.9 × C) − (0.9 × D) + E − F − G +where +A +is the amount of the corporation’s long-term debt +at the end of the year, +B +is the total amount, at the end of the year, of the +corporation’s +(i) capital stock (or, in the case of an insurance +corporation incorporated without share capital, +the amount of its members’ contributions), +(ii) retained earnings, +(iii) accumulated other comprehensive income, +(iv) policyholders’ liabilities, +(v) contributed surplus, and +(vi) any other surpluses, +C +is total of all amounts each of which is the con- +tractual service margin for a group of insurance +contracts of the corporation at the end of the year +that is in respect of +(i) non-cancellable or guaranteed renewable +accident and sickness policies in respect of +accident and sickness insurance (as defined +in subsection 1408(1) of the Income Tax Regu- +lations), +(ii) mortgage insurance (as defined in subsec- +tion 1408(1) of the Income Tax Regulations), or +(iii) title insurance (as defined in subsection +1408(1) of the Income Tax Regulations), +D +is the total of all amounts each of which is the +amount, in respect of a group of reinsurance con- +tracts held by the corporation at the end of the +year, that is +(i) the contractual service margin for the +group, if no portion of the contractual service +margin is in respect of a risk under an insur- +ance policy other than an insurance policy that +is in respect of +(A) non-cancellable or guaranteed re- +newable accident and sickness policies in +respect of accident and sickness insurance +(as defined in subsection 1408(1) of the In- +come Tax Regulations), +(B) mortgage insurance (as defined in sub- +section 1408(1) of the Income Tax Regula- +tions), or +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +44 + +Page 75 +(C) title insurance (as defined in subsection +1408(1) of the Income Tax Regulations), and +(ii) in any other case, the amount that would be +the contractual service margin for the group if +the contractual service margin were deter- +mined excluding any portion that is in respect +of the reinsurance of risks under policies other +than those described in any of clauses (i)(A) to +(C), +E +is the amount of the corporation’s reserves for the +year, except to the extent that they +(i) were deducted in computing its income un- +der Part I for the year, or +(ii) are reserves in respect of the contractual +service margin for a group of insurance con- +tracts of the corporation at the end of the year, +F +is the total of all amounts each of which is the +reinsurance contract held amount for a group of +reinsurance contracts held by the corporation at +the end of the year, to the extent the amount can +be reasonably regarded as being included in the +amount determined under the description of E, +and +G +is the amount of any deficit deducted in comput- +ing the shareholders’ equity (including, for this +purpose, the amount of any provision for the re- +demption of preferred shares) at the end of the +year; +(2) Subparagraph 181.3(3)(d)(iv) of the Act is +amended by adding “and” at the end of clause (C) +and by replacing clauses (D) to (F) with the fol- +lowing: +(F) the total of all amounts each of which is the +reinsurance contract held amount for a group of +reinsurance contracts held by the corporation at +the end of the year, to the extent the amount can +be reasonably regarded as being included in the +amount determined under clause (A); and +(3) Subsections (1) and (2) apply to taxation years +that begin after 2022. +45 (1) Subsection 190(1) of the Act is amended by +adding the following in alphabetical order: +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 44-45 + +Page 76 +contractual service margin for a group of insurance +contracts of an insurer, or a group of reinsurance con- +tracts held by the insurer, at the end of a taxation year, +has the same meaning as in subsection 138(12); (marge +sur services contractuels) +group of insurance contracts of an insurer has the +same meaning as in subsection 138(12); (groupe de +contrats d’assurance) +group of reinsurance contracts held by an insurer has +the same meaning as in subsection 138(12); (groupe de +contrats de réassurance) +group of segregated fund policies of an insurer has +the same meaning as in subsection 138(12); (groupe de +polices à fonds réservé) +policyholders’ liabilities of an insurer at the end of a +taxation year has the same meaning as in subsection +138(12); (obligation envers les titulaires de polices) +(2) Subsection (1) applies to taxation years that +begin after 2022. +46 (1) Paragraph 190.1(3)(a) of the Act is replaced +by the following : +(a) the corporation’s tax payable under Parts I and +VI.2 (determined in accordance with subsection +191.5(9)) for the year; and +(2) Subsection (1) applies to the 2022 and subse- +quent taxation years. +47 (1) Paragraph 190.13(b) of the Act is replaced +by the following: +(b) in the case of a life insurance corporation that was +resident in Canada at any time in the year, the amount +determined by the formula +A + B + (0.9 × C) − (0.9 × D) − E +where +A +is the amount of the corporation’s long-term debt +at the end of the year, +B +is the total amount, at the end of the year, of the +corporation’s +(i) capital stock (or, in the case of an insurance +corporation incorporated without share capital, +the amount of its members’ contributions), +(ii) retained earnings, +(iii) accumulated other comprehensive income, +(iv) policyholders’ liabilities, +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 45-47 + +Page 77 +(v) contributed surplus, and +(vi) any other surpluses, +C +is the total of all amounts each of which is the con- +tractual service margin for a group of insurance +contracts of the corporation at the end of the year +other than a group of segregated fund policies, +D +is the total of all amounts each of which is the +amount, in respect of a group of reinsurance con- +tracts held by the corporation at the end of the +year, that is +(i) if no portion of the contractual service mar- +gin for the group is in respect of a risk under a +segregated fund policy, the contractual service +margin for the group, and +(ii) in any other case, the amount that would be +the contractual service margin for the group if +the contractual service margin were deter- +mined excluding any portion that is in respect +of the reinsurance of risk under a segregated +fund policy, and +E +is the amount of any deficit deducted in comput- +ing the shareholders’ equity (including, for this +purpose, the amount of any provision for the re- +demption of preferred shares) at the end of the +year; +(2) Subsection (1) applies to taxation years that +begin after 2022. +48 (1) The Act is amended by adding the follow- +ing after Part VI.1: +PART VI.2 +Canada Recovery Dividend +Definition +191.5 (1) The following definition applies in this Part. +bank or life insurer group member means a corpora- +tion that is +(a) a bank; +(b) a life insurance corporation that carries on busi- +ness in Canada; or +(c) a financial institution (as defined in subsection +190(1)) that is related to any corporation described in +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 47-48 + +Page 78 +paragraph (a) or (b). (membre d’un groupe de +banques ou d’assureurs-vie) +Tax payable +(2) Every corporation that is a bank or life insurer group +member at any time during a 2021 taxation year shall pay +a tax under this Part for its 2022 taxation year equal to +the amount determined by the formula +0.15 [(A ÷ 2) − B] +where +A +is the corporation’s total taxable income (or taxable +income earned in Canada if the corporation is non- +resident) for +(a) 2020 taxation years of the corporation, deter- +mined under Part I, without regard to paragraphs +111(1)(a) and (b), and +(b) 2021 taxation years of the corporation, deter- +mined under Part I, without regard to paragraphs +111(1)(a) and (b); and +B +is +(a) if the corporation is not related to another +bank or life insurer group member at the end of +each 2021 taxation year of the corporation, $1 bil- +lion, and +(b) in any other case, the amount determined un- +der subsection (7). +Multiple 2022 taxation years +(3) If a corporation has more than one 2022 taxation +year, the latest 2022 taxation year is the 2022 taxation +year for the purposes of subsection (2). +Multiple 2020 and 2021 taxation years +(4) For the purposes of subsection (2), +(a) if a corporation has more than one 2020 taxation +year and the aggregate number of days in all its 2020 +taxation years is greater than 365 days, the amount de- +termined for the corporation under paragraph (a) of +the description of A in subsection (2) shall be reduced +to that proportion of that amount that 365 is of the ag- +gregate number of days in all 2020 taxation years; and +(b) if a corporation has more than one 2021 taxation +year and the aggregate number of days in all its 2021 +taxation years is greater than 365 days, the amount de- +termined for the corporation under paragraph (b) of +the description of A in subsection (2) shall be reduced +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +48 + +Page 79 +to that proportion of that amount that 365 is of the ag- +gregate number of days in all 2021 taxation years. +Related group +(5) A corporation that is described in paragraph (a) or +(b) of the definition bank or life insurer group member +in subsection (1) at any time during a 2021 taxation year +and that was related to any other bank or life insurer +group member at the end of the year (in this section, the +corporation and each such bank or life insurer group +member are referred to together as a “related group”) +may file with the Minister an agreement in prescribed +form, with the prescribed form referred to in subsection +(8), on behalf of the related group under which an +amount that does not exceed $1 billion is allocated +among the members of the related group for the taxation +year. +Allocation by Minister +(6) The Minister may request a corporation that is mem- +ber of a related group at any time during the 2021 taxa- +tion year to file with the Minister an agreement referred +to in subsection (5) and, if the corporation does not file +the agreement within 30 days after receiving the request, +the Minister may allocate the amount referred to in sub- +section (5) among the members of the related group for +the taxation year. +Allocation +(7) For the purposes of this Part, the least amount allo- +cated for the taxation year to each bank or life insurer +group member under an agreement described in subsec- +tion (5) or by the Minister under subsection (6) is the +amount determined for B in subsection (2) for the taxa- +tion year of that member, but, if no such allocation is +made, the amount determined for B in subsection (2) of +each bank and life insurer group member for the year is +nil. +Return +(8) A corporation that is a bank or life insurer group +member shall file with the Minister, no later than the day +on or before which the corporation is required by section +150 to file its return of income for the 2022 taxation year +under Part I, a prescribed form containing prescribed in- +formation. +Instalments +(9) A corporation liable to pay tax for the 2022 taxation +year under this Part shall pay 1/5 of the tax to the +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +48 + +Page 80 +Receiver General on or before its balance-due day for the +2022 and each of the four subsequent taxation years. +Administrative provisions — Part VI.2 +191.6 Sections 152, 158 and 159, subsection 161(11), sec- +tions 162 to 167 and Division J of Part I apply to this Part +with such modifications as the circumstances require. +(2) Subsection (1) applies to the 2022 and subse- +quent taxation years. +49 (1) Subsection 204.6(1) of the Act is replaced +by the following: +Tax payable +204.6 (1) If at the end of any month a taxpayer that is a +registered +investment +described +in +paragraph +204.4(2)(b), (d) or (f) holds property that is not a pre- +scribed investment for that taxpayer, it shall, in respect +of that month, pay a tax under this Part equal to the total +of all amounts each of which is an amount determined in +respect of such a property by the formula +0.01(A × B ÷ C) +where +A +is the fair market value of the property at the time of +its acquisition by the taxpayer; +B +is the total number of units or shares of the capital +stock of the registered investment held at the end of +the month by one or more +(a) trusts that are governed by any of a RDSP, RE- +SP, RRIF, RRSP, TFSA or deferred profit sharing +plan, or +(b) registered investments described in paragraph +204.4(2)(b), (d) or (f); and +C +is the total number of issued units or issued and out- +standing shares of the capital stock of the registered +investment at the end of the month. +(2) Paragraph (a) of the description of B in sub- +section 204.6(1) of the Act is replaced by the fol- +lowing: +(a) trusts that are governed by any of a FHSA, RDSP, +RESP, RRIF, RRSP, TFSA or deferred profit sharing +plan, or +(3) Subsection (1) applies in respect of months +after December 2020. It also applies in respect of +months before 2021 if, on or before April 19, 2021, +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 48-49 + +Page 81 +(a) no notice of assessment in respect of an +amount payable under subsection 204.6(1) of +the Act for the month had been sent to the tax- +payer in respect of the month; or +(b) if such a notice of assessment had been +sent to the taxpayer in respect of the month on +or before that date, the taxpayer had rights of +objection or appeal in respect of the assess- +ment on that date. +(4) Subsection (2) applies in respect of months +after March 2023. +50 (1) The portion of subsection 207.01(1) of the +Act before the first definition is replaced by the +following: +Definitions +207.01 (1) The following definitions and the definitions +in subsections 146(1) (other than the definition benefit), +146.1(1), 146.2(1), 146.3(1), 146.4(1) and 146.6(1) apply in +this Part and Part XLIX of the Income Tax Regulations. +(2) The definition registered plan in subsection +207.01(1) of the Act is replaced by the following: +registered plan means a FHSA, RDSP, RESP, RRIF, +RRSP or TFSA. (régime enregistré) +(3) The definition controlling individual in subsec- +tion 207.01(1) of the Act is amended by striking +out “or” at the end of paragraph (c), by adding +“or” at the end of paragraph (d) and by adding +the following after paragraph (d): +(e) the holder of a FHSA. (particulier contrôlant) +(4) The portion of the definition qualified invest- +ment in subsection 207.01(1) of the Act before +paragraph (b) is replaced by the following: +qualified investment for a trust governed by a FHSA or +TFSA means +(a) an investment that would be described by any of +paragraphs (a) to (d), (f) and (g) of the definition +qualified investment in section 204 if the reference in +that definition to “a trust governed by a deferred profit +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 49-50 + +Page 82 +sharing plan or revoked plan” were read as a reference +to “a trust governed by a FHSA or TFSA” and if that +definition were read without reference to the words +“with the exception of excluded property in relation to +the trust”; +(5) Paragraph (a) of the definition registered plan +strip in subsection 207.01(1) of the Act is replaced +by the following: +(a) included in the income of a person under section +146, 146.1, 146.3, 146.4 or 146.6; +(6) The definition registered plan strip in subsec- +tion 207.01(1) of the Act is amended by adding the +following after paragraph (b): +(b.1) a qualifying withdrawal under section 146.6; +(b.2) a designated amount; +(7) Subparagraph (d)(i) of the definition swap +transaction in subsection 207.01(1) of the Act is re- +placed by the following: +(i) both registered plans are RRIFs, RRSPs or FH- +SAs; +(8) Subsection 207.01(1) of the Act is amended by +adding the following in alphabetical order: +designated amount of an individual means an amount, +not exceeding the excess FHSA amount of the individual, +designated by the individual in the prescribed form and +manner that is +(a) a transfer in accordance with subparagraph +146.6(7)(b)(ii) to a FHSA under which the individual is +the holder, to the extent that it does not exceed the to- +tal of all amounts transferred under paragraph +146(16)(a.2) on or before the date of the designation +less the total of all amounts previously designated un- +der this paragraph; or +(b) a withdrawal from a FHSA under which the indi- +vidual is the holder, to the extent that it does not ex- +ceed the total of all amounts contributed to a FHSA +under which the individual is the holder on or before +the date of the designation less the total of all amounts +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +50 + +Page 83 +previously designated under this paragraph. (montant +désigné) +excess FHSA amount of an individual at a particular +time in a taxation year means the amount determined by +the formula +A + B − C − D − E +where +A +is the total of all amounts each of which is a contri- +bution made to a FHSA by the individual at or before +the particular time; +B +is the total of all amounts transferred under para- +graph 146(16)(a.2), at or before the particular time, +to a FHSA under which the individual is the holder; +C +is the lesser of +(a) $40,000, and +(b) the amount determined by the formula +$8,000 + F + G + H − I +where +F +is the amount of the FHSA carryforward for +the taxation year, +G +is the total of all amounts each of which is a +contribution made to a FHSA by the individu- +al at or before the end of the immediately pre- +ceding taxation year, +H +is the total of all amounts transferred under +paragraph 146(16)(a.2), at or before the end of +the immediately preceding taxation year, to a +FHSA under which the individual is the hold- +er, and +I +is the excess FHSA amount determined at the +end of the immediately preceding taxation +year; +D +is the total of all amounts each of which is a designat- +ed amount in respect of a transfer or withdrawal +made by the individual in the taxation year but be- +fore the particular time; and +E +is the total of all amounts required to be included in +computing the income of the individual in the taxa- +tion year under subsection 146.6(6) or (17) at or be- +fore the particular time. (excédent de CELIAPP) +(9) Subsections (1) to (8) come into force on April +1, 2023. +51 (1) The Act is amended by adding the follow- +ing after section 207.02: +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 50-51 + +Page 84 +Tax payable on excess FHSA amount +207.021 If, at any time in a calendar month, an individ- +ual has an excess FHSA amount, the individual shall, in +respect of that month, pay a tax under this Part equal to +1% of the highest such amount in that month. +Survivor as successor holder +207.022 If an individual’s survivor becomes the holder +of a FHSA as a consequence of the individual’s death and, +immediately before the individual’s death, the individual +had an excess FHSA amount, the survivor is deemed to +have made, at the beginning of the month following the +individual’s death, a contribution under a FHSA equal to +the amount, if any, by which +(a) that excess FHSA amount +exceeds +(b) the total fair market value immediately before the +individual’s death of all property held under the FH- +SAs of the individual (other than a FHSA in respect of +which the survivor became the successor holder as a +consequence of the individual’s death). +(2) Subsection (1) comes into force on April 1, +2023. +52 (1) Section 207.06 of the Act is amended by +adding the following after subsection (2): +Waiver of tax payable +(3) If an individual would otherwise be liable to pay a tax +under section 207.021, the Minister may waive or cancel +all or part of the liability if +(a) the individual establishes to the satisfaction of the +Minister that the liability arose as a consequence of a +reasonable error; and +(b) one or more distributions are made without delay +under a FHSA of which the individual is the holder, +the total amount of which is not less than the total of +(i) the amount in respect of which the individual +would otherwise be liable to pay tax, and +(ii) the income (including any capital gain) that is +reasonably attributable, directly or indirectly, to the +amount described in subparagraph (i). +(2) Subsection (1) comes into force on April 1, +2023. +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 51-52 + +Page 85 +53 (1) Subsection 212(1) of the Act is amended by +striking out “or” at the end of paragraph (w), by +adding “or” at the end of paragraph (x) and by +adding the following after paragraph (x): +First home savings account +(y) a payment out of a FHSA, other than any portion +of the payment that is transferred in accordance with +subsection 146.6(7). +(2) Section 212 of the Act is amended by adding +the following after subsection (20): +Interest coupon stripping arrangement — conditions +(21) Subsection (22) applies at any time in respect of a +taxpayer if +(a) the taxpayer pays or credits a particular amount at +that time as, on account or in lieu of payment of, or in +satisfaction of, interest to a person or partnership (in +this subsection and subsection (22) referred to as the +“interest coupon holder”) in respect of a debt or other +obligation, other than a specified publicly offered debt +obligation, owed to another person or partnership (in +this subsection and subsection (22) referred to as the +“non-arm’s length creditor”) that is +(i) a non-resident person with whom the taxpayer +is not dealing at arm’s length, or +(ii) a partnership other than a Canadian partner- +ship; and +(b) the tax that would be payable under this Part in re- +spect of the particular amount, if the particular +amount were paid or credited to the non-arm’s length +creditor rather than the interest coupon holder, is +greater than the tax payable under this Part (deter- +mined without reference to subsection (22)) in respect +of the particular amount. +Interest coupon stripping arrangement — application +(22) If this subsection applies at any time in respect of a +taxpayer, then for the purpose of paragraph (1)(b), the +taxpayer is deemed, at that time, to pay interest to the +non-arm’s length creditor, the amount of which is deter- +mined by the formula +A × (B − C) ÷ B +where +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +53 + +Page 86 +A +is the particular amount referred to in paragraph +(21)(a); +B +is the rate of tax that would be imposed under this +Part in respect of the particular amount if the partic- +ular amount were paid by the taxpayer to the non- +arm’s length creditor rather than the interest coupon +holder at that time; and +C +is the rate of tax imposed under this Part in respect +of the particular amount paid or credited to the in- +terest coupon holder at that time. +Definition of specified publicly offered debt obligation +(23) For the purposes of subsection (21), specified pub- +licly offered debt obligation means a debt or other +obligation that meets the following conditions: +(a) it was issued by the taxpayer as part of an offering +that is lawfully distributed to the public in accordance +with a prospectus, registration statement or similar +document filed with and, where required by law, ac- +cepted for filing by a public authority; and +(b) it can reasonably be considered that none of the +main purposes of a transaction or event, or series of +transactions or events, as a part of which the taxpayer +pays or credits an amount as, on account or in lieu of +payment of, or in satisfaction of, interest to a person +or partnership in respect of the debt or other obliga- +tion is to avoid or reduce tax that would otherwise be +payable under this Part by a non-resident person or +partnership to whom the debt or other obligation is +owed. +(3) Subsection (1) comes into force on April 1, +2023. +(4) Subsection (2) applies in respect of interest +that accrues on or after April 7, 2022 and is paid +or payable by a taxpayer to an interest coupon +holder in respect of a debt or other obligation +owed to a non-arm’s length creditor. However, +subsection (2) does not apply to interest that ac- +crues before April 7, 2023, if the interest is paid or +payable +(a) in respect of a debt or other obligation in- +curred by the taxpayer before April 7, 2022; and +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Section +53 + +Page 87 +(b) to an interest coupon holder that deals at +arm’s length with the non-arm’s length credi- +tor and that acquired the entitlement to the in- +terest as a consequence of an agreement or +other arrangement entered into by the interest +coupon holder, and evidenced in writing, be- +fore April 7, 2022. +54 (1) Subsection 231.1(1) of the Act is replaced +by the following: +Information gathering +231.1 (1) An authorized person may, at all reasonable +times, for any purpose related to the administration or +enforcement of this Act, +(a) inspect, audit or examine any document, including +books and records, of a taxpayer or any other person +that may be relevant in determining the obligations or +entitlements of the taxpayer or any other person un- +der this Act; +(b) examine any property or process of, or matter re- +lating to, a taxpayer or any other person, an examina- +tion of which may assist the authorized person in de- +termining the obligations or entitlements of the tax- +payer or any other person under this Act; +(c) enter any premises or place where any business is +carried on, any property is kept, anything is done in +connection with any business or any books or records +are or should be kept, except that, if the premises or +place is a dwelling-house, the authorized person may +enter the dwelling-house without the consent of the +occupant only under the authority of a warrant under +subsection (3); +(d) require a taxpayer or any other person to give the +authorized person all reasonable assistance, to answer +all proper questions relating to the administration or +enforcement 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 +(e) require a taxpayer or any other person to give the +authorized person all reasonable assistance with any- +thing the authorized person is authorized to do under +this Act. +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 53-54 + +Page 88 +(2) Subsection 231.1(2) of the Act is repealed. +55 (1) Subsection 241(3.2) of the Act is amended +by striking out “and” at the end of paragraph (g) +and by replacing paragraph (h) with the follow- +ing: +(h) in the case of a registrant that is a charity, an ap- +plication by the registrant, and information filed in +support of the application, for a designation, determi- +nation or decision by the Minister under any of sub- +sections 149.1(6.3), (7), (8) and (13); and +(i) in the case of a registrant that is a charity, in re- +spect of an application for a determination by the +Minister under subsection 149.1(5), information in re- +spect of the application, including +(i) the application, +(ii) information filed in support of the application, +and +(iii) a copy of the entirety of or any part of any let- +ter or notice by the Minister to the registrant relat- +ing to the application. +(2) Subsection (1) comes into force or is deemed +to have come into force on January 1, 2023. +56 (1) The definitions tax benefit and tax conse- +quences in subsection 245(1) of the Act are re- +placed by the following: +tax benefit means +(a) a reduction, avoidance or deferral of tax or other +amount payable under this Act, and includes a reduc- +tion, avoidance or deferral of tax or other amount that +would be payable under this Act but for a tax treaty, +(b) an increase in a refund of tax or other amount un- +der this Act, and includes an increase in a refund of +tax or other amount under this Act as a result of a tax +treaty, or +(c) a reduction, increase or preservation of an amount +that could at a subsequent time +(i) be relevant for the purpose of computing an +amount referred to in paragraph (a) or (b), and +(ii) result in any of the effects described in para- +graph (a) or (b); (avantage fiscal) +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 54-56 + +Page 89 +tax consequences, to a person, means +(a) the amount of income, taxable income or taxable +income earned in Canada of the person under this Act, +(b) the tax or other amount payable by, or refundable +to, the person under this Act, or +(c) any other amount that is, or could at a subsequent +time be, relevant for the purpose of computing an +amount referred to in paragraph (a) or (b); (attribut +fiscal) +(2) Subsection (1) applies in respect of transac- +tions that occur +(a) on or after April 7, 2022; or +(b) before April 7, 2022 if a determination is +made under subsection 152(1.11) of the Act on +or after April 7, 2022 in respect of the transac- +tion. +57 (1) Subsection 248(1) of the Act is amended by +adding the following in alphabetical order: +first home savings account or FHSA has the same +meaning as in subsection 146.6(1); (compte d’épargne +libre d’impôt pour l’achat d’une première propriété +ou CELIAPP) +(2) Subsection (1) comes into force on April 1, +2023. +58 (1) Subsection 253.1(1) of the Act is replaced +by the following: +Investments in limited partnerships +253.1 (1) For +the +purposes +of +subparagraph +108(2)(b)(ii), paragraphs 130.1(6)(b), 131(8)(b), 132(6)(b) +and +146.1(2.1)(c), +subsection +146.2(6), +paragraph +146.4(5)(b), subsections 146.6(3) and 147.5(8), paragraph +149(1)(o.2), the definition private holding corporation +in subsection 191(1), the definition investment fund in +subsection 251.2(1) and regulations made for the purpos- +es of paragraphs 149(1)(o.3) and (o.4), if a trust or +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 56-58 + +Page 90 +corporation holds an interest as a member of a partner- +ship and, by operation of any law governing the arrange- +ment in respect of the partnership, the liability of the +member as a member of the partnership is limited, the +member shall not, solely because of its acquisition and +holding of that interest, be considered to carry on any +business or other activity of the partnership. +(2) Subsection (1) comes into force on April 1, +2023. +R.S., c. C-3 +Canada Deposit Insurance Corporation +Act +59 (1) Section 5 of the schedule to the Canada +Deposit Insurance Corporation Act is amended +by adding the following after subsection (3): +First home savings account +(3.1) Despite subsection 6(2), for the purposes of deposit +insurance with the Corporation, if moneys that constitute +a deposit or part of a deposit are received by a member +institution from a depositor under a first home savings +account as defined in subsection 248(1) of the Income +Tax Act, and the account is for the benefit of an individu- +al, then the aggregate of those moneys and any other +moneys that constitute a deposit or part of a deposit re- +ceived from that depositor under any other first home +savings account that is for the benefit of that individual is +considered to be a single deposit separate from any other +deposit for the benefit of that individual. +(2) Subsection (1) comes into force on April 1, +2023. +R.S., c. E-15 +Excise Tax Act +60 Subsection 98(3) of the Excise Tax Act is re- +placed by the following: +Inspection +(3) Every person required by subsection (1) to keep +records and books of account shall, at all reasonable +times, for any purpose related to the administration or +enforcement of this Act +(a) make the records and books of account and every +account +and +voucher +necessary +to +verify +the +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Act +Sections 58-60 + +Page 91 +information therein available to a particular person +that is an officer of the Agency or another person au- +thorized by the Minister; +(b) give the particular person all reasonable assistance +to inspect, audit or examine the records, books, ac- +counts and vouchers; +(c) give the particular person all reasonable assis- +tance, answer all proper questions relating to the ad- +ministration and enforcement of this Act and +(i) attend with the particular person at a place des- +ignated by the particular person, or by video-con- +ference or by another form of electronic communi- +cation, and answer the questions orally, and +(ii) answer the questions in writing, in any form +specified by the particular person; and +(d) give the particular person all reasonable assistance +with anything the particular person is authorized to do +under this Act. +61 (1) The Act is amended by adding the follow- +ing after section 285.02: +Definitions +285.03 (1) The following definitions apply in this sec- +tion. +gross entitlements of a person at any time, in respect +of a planning activity of the person, means all amounts to +which the person, or another person not dealing at arm’s +length with the person, is entitled, either before or after +that time and either absolutely or contingently, to receive +or obtain in respect of the activity. (droits à paiement) +planning activity has the same meaning as in subsec- +tion 285.1(1). (activité de planification) +section 325 avoidance planning, by a person, means a +planning activity in respect of a transaction or series of +transactions that meets the following conditions: +(a) the transaction or series of transactions is, or is +part of, a section 325 avoidance transaction; and +(b) one of the purposes of the transaction or series of +transactions is to +(i) reduce a transferee’s joint and several, or sol- +idary, liability under section 325 for an amount +payable or remittable under this Part by a transfer- +or or for an amount that would be payable or +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Excise Tax Act +Sections 60-61 + +Page 92 +remittable by the transferor but for a transaction or +series of transactions in which an amount, that is or +may be relevant in determining any obligations or +entitlements under this Part of a person that dealt +at arm’s length with the transferor or transferee im- +mediately before the transaction or series of trans- +actions, is used directly or indirectly to provide a +tax benefit for the transferor or transferee, or +(ii) reduce the person or another person’s ability to +pay any amount payable or remittable, or that may +become payable or remittable, under this Part. (pla- +nification d’évitement de l’article 325) +section 325 avoidance transaction means a transac- +tion or series of transactions in respect of which +(a) the conditions in paragraph 325(5)(a) or (b) are +met; or +(b) if subsection 325(5) applied to the transaction or +series of transactions, the amount determined under +subparagraph 325(5)(c)(ii) would exceed the amount +determined under subparagraph 325(5)(c)(i). (opéra- +tion d’évitement de l’article 325) +tax benefit has the same meaning as in subsection +285.1(1). (avantage fiscal) +transaction includes an arrangement or event. (opéra- +tion) +Penalty +(2) Every person that engages in, participates in, assents +to or acquiesces in a planning activity that they know is +section 325 avoidance planning, or would reasonably be +expected to know is section 325 avoidance planning, but +for circumstances amounting to gross negligence, is li- +able to a penalty equal to the lesser of +(a) 50% of the amount payable or remittable under +this Part in respect of which the joint and several, or +solidary, liability was sought to be avoided through the +planning, and +(b) the total of $100,000 and the person’s gross entitle- +ments in respect of the planning at the time at which +the notice of assessment of the penalty is sent to the +person in respect of the planning. +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Excise Tax Act +Section +61 + +Page 93 +Clerical or secretarial services +(3) Subsection (2) does not apply to a person solely be- +cause the person provided clerical services or secretarial +services with respect to the planning. +(2) Subsection (1) is deemed to have come into +force on April 19, 2021. +62 (1) Subsections 288(1) and (2) of the Act are +replaced by the following: +Inspections +288 (1) Subject to subsection (2), an authorized person +may, at all reasonable times, for any purpose related to +the administration or enforcement of this Part +(a) inspect, audit or examine any documents, property +or processes of a person that may be relevant in deter- +mining the obligations or entitlements of that or any +other person under this Part; +(b) enter any premises or place where any business or +commercial activity is carried on, where any property +is kept, where anything is done in connection with any +business or commercial activity or where any docu- +ments are or should be kept; +(c) require any person to give the authorized person +all reasonable assistance, to answer all proper ques- +tions relating to the administration and enforcement +of this Part 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 +(d) require the person or any other person to give the +authorized person all reasonable assistance with any- +thing the authorized person is authorized to do under +this Part. +Prior authorization +(2) If any premises or place referred to in subsection (1) +is a dwelling-house, an authorized person may not enter +that dwelling-house without the consent of the occupant, +except under the authority of a warrant issued under +subsection (3). +(2) Paragraph 288(3)(a) of the Act is replaced by +the following: +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Excise Tax Act +Sections 61-62 + +Page 94 +(a) there are reasonable grounds to believe that a +dwelling-house is a premises or place referred to in +subsection (1), +63 Paragraph 298(1)(e) of the Act is replaced by +the following: +(e) in the case of any penalty payable by the person, +other than a penalty under section 280.1, 285, 285.01, +285.02, 285.03 or 285.1, more than four years after the +person became liable to pay the penalty; +64 (1) Section 325 of the Act is amended by +adding the following before subsection (1): +Definitions +325 (0.1) The following definitions apply in this section. +property includes money. (bien) +transaction includes an arrangement or event. (opéra- +tion) +(2) Subsection 325(5) of the Act is replaced by the +following: +Anti-avoidance rules +(5) 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 +or remittable under this Part; +(b) an amount that the transferor is liable to pay or re- +mit under this Part (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 (2) in respect of that +amount) is deemed to have become payable or +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Excise Tax Act +Sections 62-64 + +Page 95 +remittable, as the case may be, in the reporting period +of the transferor in which the property was trans- +ferred, 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 amount payable under this Part +by the transferor or transferee; and +(c) the amount determined for A in paragraph (1)(d) +is deemed to be the greater of +(i) the amount otherwise determined for A in para- +graph (1)(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 and for which no +property that is neither cancelled nor extin- +guished during that period is substituted) pro- +vided that the consideration is held by the +transferor at that time. +(3) Subsections (1) and (2) are deemed to have +come into force on April 19, 2021. +2002, c. 9, s. 5 +Air Travellers Security Charge Act +65 (1) The portion of subsection 70(2) of the Air +Travellers Security Charge Act before paragraph +(a) is replaced by the following: +Powers of authorized person +(2) Subject to subsection (3), the authorized person may, +at all reasonable times, for any purpose related to the ad- +ministration or enforcement of this Act +(2) Paragraph 70(2)(b) of the Act is amended by +striking out “and” at the end of paragraph (a) +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Excise Tax Act +Sections 64-65 + +Page 96 +and by replacing paragraph (b) with the follow- +ing: +(b) require any person to give the authorized person +all reasonable assistance, to answer all proper ques- +tions relating to the administration or enforcement 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. +(3) Subsection 70(3) of the Act is replaced by the +following: +Prior authorization +(3) If any place referred to in subsection (2) 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 (4). +(4) Paragraph 70(4)(a) of the Act is replaced by +the following: +(a) there are reasonable grounds to believe that the +dwelling-house is a place referred to in subsection (2); +2002, c. 22 +Excise Act, 2001 +66 (1) The portion of subsection 260(2) of the Ex- +cise Act, 2001 before paragraph (d) is replaced by +the following: +Powers of officer +(2) Subject to subsection (3), the officer may, at all rea- +sonable times, for any purpose related to the administra- +tion or enforcement of this Act +(a) enter any place in which the officer reasonably be- +lieves the person keeps records or carries on any activ- +ity to which this Act applies; +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Air Travellers Security Charge Act +Sections 65-66 + +Page 97 +(b) stop a conveyance or direct that it be moved to a +place where an inspection or examination may be per- +formed; +(c) require any person to give the officer all reason- +able assistance, to answer all proper questions relating +to the administration or enforcement of this Act and +(i) to attend with the officer at a place designated +by the officer, or by video-conference or by another +form of electronic communication, and to answer +the questions orally, and +(ii) to answer the questions in writing, in any form +specified by the officer; +(2) Subsection 260(2) of the Act 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) require any person to give the officer all reason- +able assistance with anything the officer is authorized +to do under this Act. +(3) Subsection 260(3) of the Act is replaced by the +following: +Prior authorization +(3) If any place referred to in subsection (2) is a +dwelling-house, the officer may not enter that dwelling- +house without the consent of the occupant, except under +the authority of a warrant issued under subsection (4). +(4) Paragraph 260(4)(a) of the Act is replaced by +the following: +(a) there are reasonable grounds to believe that the +dwelling-house is a place referred to in subsection (2); +67 (1) Section 297 of the Act is amended by +adding the following before subsection (1): +Definitions +297 (0.1) The following definitions apply in this section. +common-law partner of an individual at any time +means a person who is the common-law partner of the +individual at that time for the purposes of the Income +Tax Act. (conjoint de fait) +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Excise Act, 2001 +Sections 66-67 + +Page 98 +common-law partnership means the relationship be- +tween two persons who are common-law partners of each +other. (union de fait) +transaction includes an arrangement or event. (opéra- +tion) +(2) Subsection 297(6) of the Act is replaced by the +following: +Anti-avoidance rules +(6) 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 (3) 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 amount payable under +this Act by the transferor or transferee; and +(c) the amount determined for A in paragraph (1)(d) +is deemed to be the greater of +(i) the amount otherwise determined for A in para- +graph (1)(d) without reference to this paragraph, +and +(ii) the amount determined by the formula +A − B +where +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Excise Act, 2001 +Section +67 + +Page 99 +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 and for which no +property that is neither cancelled nor extin- +guished during that period is substituted) pro- +vided that the consideration is held by the +transferor at that time. +(3) Subsections (1) and (2) are deemed to have +come into force on April 19, 2021. +2018, c. 12, s. 186 +Greenhouse Gas Pollution Pricing Act +68 (1) The portion of subsection 141(2) of the +Greenhouse Gas Pollution Pricing Act before +paragraph (a) is replaced by the following: +Powers of authorized person +(2) Subject to subsection (3), the authorized person may, +at all reasonable times, for any purpose related to the ad- +ministration or enforcement of this Part +(2) Paragraph 141(2)(b) of the Act is replaced by +the following: +(b) require any person to give the authorized person +all reasonable assistance, to answer all proper ques- +tions relating to the administration or enforcement of +this Part 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 Part. +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Excise Act, 2001 +Sections 67-68 + +Page 100 +(3) Subsection 141(3) of the Act is replaced by the +following: +Prior authorization +(3) If any place referred to in subsection (2) 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 (4). +(4) Paragraph 141(4)(a) of the Act is replaced by +the following: +(a) there are reasonable grounds to believe that the +dwelling-house is a place referred to in subsection (2); +69 (1) Section 161 of the Act is amended by +adding the following before subsection (1): +Definition of transaction +161 (0.1) In this section, transaction includes an ar- +rangement or event. +(2) Section 161 of the Act is amended by adding +the following after subsection (5): +Anti-avoidance rules +(6) 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 Part; +(b) an amount that the transferor is liable to pay un- +der this Part (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 (3) in respect of that +amount) is deemed to have become payable in the re- +porting period of the transferor in which the property +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Greenhouse Gas Pollution Pricing Act +Sections 68-69 + +Page 101 +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 amount payable under +this Part by the transferor or transferee; and +(c) the amount determined for A in paragraph (1)(d) +is deemed to be the greater of +(i) the amount otherwise determined for A in para- +graph (1)(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 and for which no +property that is neither cancelled nor extin- +guished during that period is substituted) pro- +vided that the consideration is held by the +transferor at that time. +(3) Subsections (1) and (2) are deemed to have +come into force on April 19, 2021. +C.R.C., c. 945 +Income Tax Regulations +70 (1) The definition remuneration in subsection +100(1) of the Income Tax Regulations is amended +by striking out “or” at the end of paragraph (o), +by adding “or” at the end of paragraph (p) and by +adding the following after paragraph (p): +(q) a payment described in paragraph 153(1)(v) of the +Act; (rémunération) +(2) Subsection +100(3) +of +the +Regulations +is +amended by striking out “or” at the end of para- +graph (c) and by adding the following after that +paragraph: +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Greenhouse Gas Pollution Pricing Act +Sections 69-70 + +Page 102 +(c.1) a contribution to or under a FHSA, to the extent +that the employer believes on reasonable grounds that +the contribution is deductible under subsection +146.6(5) of the Act in computing the employee’s in- +come for the taxation year in which the payment of re- +muneration is made, or +(3) Subsections (1) and (2) come into force on +April 1, 2023. +71 (1) Subsection 103(6) of the Regulations is +amended by striking out “or” at the end of para- +graph (g), by adding “or” at the end of paragraph +(h) and by adding the following after paragraph +(h): +(i) a payment described in paragraph 153(1)(v) of the +Act. +(2) Subsection (1) comes into force on April 1, +2023. +72 (1) The Regulations are amended by adding +the following after section 204.1: +Additional Reporting — Trusts +204.2 (1) For the purposes of subsection 150(1) of the +Act, every person having the control of, or receiving in- +come, gains or profits in a fiduciary capacity, or in a ca- +pacity analogous to a fiduciary capacity, shall provide in- +formation in respect of a trust, unless the trust is subject +to one of the exceptions listed in paragraphs 150(1.2)(a) +to (o) of the Act, that includes the name, address, date of +birth (in the case of an individual other than a trust), ju- +risdiction of residence and TIN (as defined in subsection +270(1) of the Act) for each person who, in the year, +(a) is a trustee, beneficiary (subject to subsection (2)) +or settlor (as defined in subsection 17(15) of the Act) +of the trust; or +(b) has the ability (through the terms of the trust or a +related agreement) to exert influence over trustee de- +cisions regarding the appointment of income or capi- +tal of the trust. +(2) For the purposes of subsection (1), the requirement +in paragraph (1)(a) to provide required information in +respect of beneficiaries of a trust in a return is met if +(a) the required information is provided in respect of +each beneficiary of the trust whose identity is known +or ascertainable with reasonable effort by the person +making the return at the time of filing the return; +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Sections 70-72 + +Page 103 +(b) in respect of a trust, the beneficiaries of which are +all of the members of an Indigenous group, communi- +ty or people that holds rights recognized and affirmed +by section 35 of the Constitution Act, 1982, or an iden- +tifiable class of the members of an Indigenous group, +community or people that holds rights recognized and +affirmed by section 35 of the Constitution Act, 1982, +the person making the return provides a sufficiently +detailed description of the class of beneficiaries to de- +termine with certainty whether any particular person +is a member of that class of beneficiaries; +(c) in respect of a trust that is not described in para- +graph 150(1.2)(h) of the Act but which has one or more +classes of units that are listed on a designated stock +exchange, the person making the return provides the +required information regarding the beneficiaries of +those classes of units that are not listed on a designat- +ed stock exchange; and +(d) in respect of beneficiaries not described in para- +graphs (a) to (c), the person making the return pro- +vides sufficiently detailed information to determine +with certainty whether any particular person is a bene- +ficiary of the trust. +(2) Subsection (1) applies to taxation years that +end after December 30, 2023. +73 (1) The table in subsection 205(3) of the Regu- +lations is amended by adding the following in al- +phabetical order: +First Home Savings Account (FHSA) Annual Information +Return +(2) Subsection (1) comes into force on April 1, +2023. +74 (1) The table in subsection 205.1(1) of the Reg- +ulations is amended by adding the following in +alphabetical order: +First Home Savings Account (FHSA) Annual Information +Return +(2) Subsection (1) comes into force on April 1, +2023. +75 (1) Subsection 209(1) of the Regulations is re- +placed by the following: +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Sections 72-75 + +Page 104 +209 (1) A person who is required by section 200, 201, +202, 203, 204, 212, 214, 215, 217 or 218, subsection 219(2) +or 223(2) or section 228, 229, 230, 232, 233 or 234 to make +an information return shall forward to each taxpayer to +whom the return relates two copies of the portion of the +return that relates to that taxpayer. +(2) The portion of subsection 209(5) of the Regu- +lations before paragraph (a) is replaced by the +following: +(5) A person may provide a Statement of Remuneration +Paid (T4) information return, a Tuition and Enrolment +Certificate or a FHSA information return, as required un- +der subsection (1), as a single document in an electronic +format (instead of the two copies required under subsec- +tion (1)) to the taxpayer to whom the return relates, on or +before the date on which the return is to be filed with the +Minister, unless +(3) Subsections (1) and (2) come into force on +April 1, 2023. +76 (1) The Regulations are amended by adding +the following after section 218: +First Home Savings Account +219 (1) An issuer of a FHSA shall make an information +return for each calendar year in prescribed form and +manner in respect of the FHSA. +(2) An issuer of a FHSA shall make an information re- +turn in prescribed form and manner in respect of any cal- +endar year in which one or more of the following occurs: +(a) the holder makes a contribution to the FHSA; +(b) an amount has been transferred to the FHSA from +an RRSP under which the holder is an annuitant; +(c) an amount is required to be included in the in- +come of a taxpayer under section 146.6 of the Act; +(d) the holder makes a qualifying withdrawal from the +FHSA; or +(e) the holder designates an amount under the defini- +tion designated amount in subsection 207.01(1) of +the Act. +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Sections 75-76 + +Page 105 +(3) An issuer of a FHSA that governs a trust shall notify +the holder of the FHSA in prescribed form and manner +before March of a calendar year if, at any time during the +preceding calendar year, +(a) the trust acquires or disposes of property that is a +non-qualified investment (as defined in subsection +207.01(1) of the Act) for the trust; or +(b) property held by the trust becomes or ceases to be +a non-qualified investment (as defined in subsection +207.01(1) of the Act) for the trust. +(2) Subsection (1) applies to the 2023 and subse- +quent taxation years. +77 (1) Paragraphs 309.1(b) and (c) of the Regula- +tions are replaced by the following: +(b) there shall be included the insurer’s maximum +tax actuarial reserve (in this section as defined in +subsection 138(12) of the Act) for the immediately pre- +ceding taxation year in respect of participating life in- +surance policies in Canada; +(c) there shall not be included any amount in respect +of the insurer’s participating life insurance policies in +Canada that was deducted under subparagraph +138(3)(a)(i) of the Act in computing its income for the +immediately preceding taxation year; +(2) Paragraph 309.1(e) of the Regulations is re- +placed by the following: +(e) there shall be deducted the insurer’s maximum tax +actuarial reserve for the year in respect of participat- +ing life insurance policies in Canada; +(3) Paragraph 309.1(g) of the Regulations is re- +placed by the following: +(g) except as otherwise provided in paragraph (e), no +deduction shall be made in respect of a reserve de- +ductible under subparagraph 138(3)(a)(i) of the Act in +computing the insurer’s income for the year; and +(4) Subsection (1) applies to taxation years that +begin after 2023. +(5) Subsections (2) and (3) apply to taxation years +that begin after 2022. +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Sections 76-77 + +Page 106 +78 (1) Subsections 1400(3) and (4) of the Regula- +tions are replaced by the following: +(3) For the purposes of paragraphs (1)(a) and (2)(a), the +amount determined under this subsection in respect of +an insurer for a taxation year is the positive or negative +amount determined by the formula +A + B + (0.95 × C) − (0.9 × D) + E + F + G − (H − (0.9 × I)) +where +A +is the total of all amounts each of which is the liabili- +ty for remaining coverage for a group of insurance +contracts of the insurer at the end of the year other +than a group of life insurance contracts; +B +is the total of all amounts each of which is an +amount, in respect of a group of insurance contracts +of the insurer at the end of the year other than a +group of life insurance contracts, that is +(a) the liability for incurred claims for the group, +if no portion of the liability for incurred claims is +in respect of insurance policies other than insur- +ance policies in respect of which +(i) a claim that was incurred before the end of +the year has been reported to the insurer before +the end of the year, +(ii) the claim is in respect of damages for per- +sonal injury or death, and +(iii) the insurer has agreed to a structured set- +tlement of the claim, and +(b) in any other case, the amount that would be +the liability for incurred claims for the group if the +liability for incurred claims were determined ex- +cluding insurance policies other than insurance +policies that meet the conditions in subpara- +graphs (a)(i) to (iii); +C +is the total of all amounts each of which is an +amount, in respect of a group of insurance contracts +of the insurer at the end of the year other than a +group of life insurance contracts, that is +(a) the liability for incurred claims for the group, +if no portion of the liability for incurred claims is +in respect of insurance policies that meet the con- +ditions in subparagraphs (a)(i) to (iii) of the de- +scription of B, and +(b) in any other case, the amount that would be +the liability for incurred claims for the group if the +liability for incurred claims were determined ex- +cluding insurance policies that meet the condi- +tions in subparagraphs (a)(i) to (iii) of the descrip- +tion of B, +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +78 + +Page 107 +D +is the total of all amounts each of which is the con- +tractual service margin for a group of insurance poli- +cies of the insurer at the end of the year that is in re- +spect of +(a) non-cancellable or guaranteed renewable acci- +dent and sickness policies that are in respect of +accident and sickness insurance, +(b) mortgage insurance, or +(c) title insurance; +E +is an amount in respect of policies that insure a fi- +delity risk, a surety risk, a nuclear risk or a risk relat- +ed to a financial loss of a lender on a loan made on +the security of real property, equal to the lesser of +(a) the total of the reported reserves of the insurer +at the end of the year in respect of such risks (oth- +er than an amount included under the description +of A, B, C, D or F), and +(b) a reasonable amount as a reserve determined +as at the end of the year in respect of such risks +(other than an amount included under the de- +scription of A, B, C, D or F); +F +is the amount of a guarantee fund at the end of the +year provided for under an agreement in writing be- +tween the insurer and His Majesty in right of Canada +under which His Majesty has agreed to guarantee the +obligations of the insurer under a policy that insures +a risk related to a financial loss of a lender on a loan +made on the security of real property; +G +is an amount in respect of policies that insure earth- +quake risks in Canada equal to the lesser of +(a) the portion of the reported reserve of the in- +surer at the end of the year in respect of those +risks that is attributable to accumulations from +premiums in respect of those risks (other than an +amount included under the description of A, B, C, +D, E or F), and +(b) a reasonable amount as a reserve determined +at the end of the year in respect of those risks +(other than an amount included under the de- +scription of A, B, C, D, E or F); +H +is the total of all amounts each of which is an +amount, in respect of a group of reinsurance con- +tracts held by the insurer at the end of the year, that +is +(a) if no portion of the reinsurance contract held +amount for the group is in respect of the reinsur- +ance of a risk under life insurance policies, the +reinsurance contract held amount for the group, +and +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +78 + +Page 108 +(b) in any other case, the amount that would be +the reinsurance contract held amount for the +group if the amount were determined excluding +any portion of that amount that is in respect of the +reinsurance of a risk under life insurance policies; +and +I +is the total of all amounts each of which is the +amount, in respect of a group of reinsurance con- +tracts held by the insurer at the end of the year, that +is +(a) if no portion of the contractual service margin +for the group is in respect of the reinsurance of a +risk under a policy other than a policy described +in paragraph (a) of the description of D, or a poli- +cy in respect of insurance described in paragraph +(b) or (c) of the description of D, the contractual +service margin for the group, and +(b) in any other case, the amount that would be +the contractual service margin for the group if the +contractual service margin were determined ex- +cluding any portion of the contractual service +margin other than that portion that is in respect of +the reinsurance of a risk under a policy described +in paragraph (a) of the description of D, and a pol- +icy in respect of insurance described in paragraph +(b) or (c) of the description of D. +(2) Subsection (1) applies to taxation years that +begin after 2022. +79 (1) Section 1402 of the Regulations is replaced +by the following: +1402 Any amount determined under +(a) section 1401 shall be determined net of relevant +reinsurance recoverable amounts; and +(b) section 1400 or 1401 shall be determined without +reference to any amount in respect of a deposit ac- +counting insurance policy. +(2) Subsection (1) applies to taxation years that +begin after 2022. +80 (1) The portion of subsection 1404(1) of the +Regulations before paragraph (a) is replaced by +the following: +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Sections 78-80 + +Page 109 +1404 (1) For the purpose of subparagraph 138(3)(a)(i) +of the Act, there may be deducted, in computing a life in- +surer’s income from carrying on its life insurance busi- +ness in Canada for a taxation year in respect of its groups +of life insurance contracts in Canada at the end of the +year, the amount the insurer claims, not exceeding +(2) The portion of subsection 1404(2) of the Regu- +lations before paragraph (a) is replaced by the +following: +(2) For the purpose of paragraph 138(4)(b) of the Act, the +amount prescribed in respect of an insurer for a taxation +year, in respect of its groups of life insurance contracts in +Canada at the end of the year, is +(3) Subsection 1404(3) of the Regulations is re- +placed by the following: +(3) For the purposes of paragraphs (1)(a) and (2)(a), the +amount determined under this subsection in respect of +an insurer for a taxation year, for groups of life insurance +contracts in Canada of the insurer at the end of the year, +is the positive or negative amount determined by the for- +mula +A + B − (0.9 × C) − (D − (0.9 × E)) +where +A +is the total of all amounts each of which is the liabili- +ty for remaining coverage for a group of life insur- +ance contracts in Canada of the insurer at the end of +the year; +B +is the total of all amounts each of which is the liabili- +ty for incurred claims for a group of life insurance +contracts in Canada of the insurer at the end of the +year; +C +is the total of all amounts each of which is the con- +tractual service margin for a group of life insurance +contracts in Canada (other than a group of segregat- +ed fund policies) of the insurer at the end of the year; +D +is the total of all amounts each of which is an +amount, in respect of a group of reinsurance con- +tracts held by the insurer at the end of the year, that +is +(a) if no portion of the reinsurance contract held +amount for the group is in respect of the reinsur- +ance of a risk under an insurance policy other +than a life insurance policy in Canada, the reinsur- +ance contract held amount for the group, and +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +80 + +Page 110 +(b) in any other case, the amount that would be +the reinsurance contract held amount for the +group if the amount were determined excluding +any portion that is in respect of the reinsurance of +a risk under an insurance policy other than a life +insurance policy in Canada; and +E +is the total of all amounts each of which is an +amount, in respect of a group of reinsurance con- +tracts held by the insurer at the end of the year, that +is +(a) if no portion of the contractual service margin +for the group is in respect of the reinsurance of a +risk under an insurance policy other than a life in- +surance policy in Canada that is not a segregated +fund policy, the contractual service margin for the +group, and +(b) in any other case, the amount that would be +the contractual service margin for the group if the +contractual service margin were determined ex- +cluding any portion that is in respect of the rein- +surance of a risk under insurance policies other +than a life insurance policy in Canada that is not a +segregated fund policy. +(4) Subsections (1) to (3) apply to taxation years +that begin after 2022. +81 (1) Section 1405 of the Regulations is repealed. +(2) Subsection (1) applies to taxation years that +begin after 2022. +82 (1) The portion of section 1406 of the Regula- +tions before paragraph (b) is replaced by the fol- +lowing: +1406 Any amount determined under section 1404 shall +be determined +(2) Subsection (1) applies to taxation years that +begin after 2022. +83 (1) Section 1407 of the Regulations is replaced +by the following: +1407 For greater certainty, any amount referred to in or +determined under section 1404 may be equal to, or less +than, nil. +(2) Subsection (1) applies to taxation years that +begin after 2022. +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Sections 80-83 + +Page 111 +84 (1) The definitions claim liability, extended mo- +tor vehicle warranty, general amending provision, +policy liability, post-1995 life insurance policy, +post-1995 non-cancellable or guaranteed renewable +accident and sickness policy, pre-1996 life insurance +policy, pre-1996 non-cancellable or guaranteed re- +newable accident and sickness policy and reinsur- +ance commission in subsection 1408(1) of the Reg- +ulations are repealed. +(2) The definitions relevant authority and reported +reserve in subsection 1408(1) of the Regulations +are replaced by the following: +relevant authority of an insurer has the same meaning +as in subsection 138(12) of the Act. (autorité compé- +tente) +reported reserve of an insurer at the end of a taxation +year in respect of a policy that insures an earthquake risk +in Canada, or a fidelity risk, a nuclear risk or a risk relat- +ed to a financial loss of a lender on a loan made on the +security of real property, means the amount equal to the +positive or negative amount of the reserve reported as at +the end of the year. (provision déclarée) +(3) Subsection 1408(1) of the Regulations is +amended by adding the following in alphabetical +order: +accident and sickness insurance has the same mean- +ing as in the schedule to the Insurance Companies Act. +(assurance accidents et maladie) +contractual service margin for a group of insurance +contracts of an insurer, or a group of reinsurance con- +tracts held by the insurer, at the end of a taxation year, +has the same meaning as in subsection 138(12) of the Act. +(marge sur services contractuels) +group of insurance contracts of an insurer has the +same meaning as in subsection 138(12) of the Act. +(groupe de contrats d’assurance) +group of life insurance contracts of an insurer has the +same meaning as in subsection 138(12) of the Act. +(groupe de contrats d’assurance-vie) +group of life insurance contracts in Canada of an in- +surer has the same meaning as in subsection 138(12) of +the Act. (groupe de contrats d’assurance-vie au +Canada) +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +84 + +Page 112 +group of reinsurance contracts held by an insurer has +the same meaning as in subsection 138(12) of the Act. +(groupe de contrats de réassurance) +group of segregated fund policies of an insurer has +the same meaning as in subsection 138(12) of the Act. +(groupe de polices à fonds réservé) +liability for incurred claims for a group of insurance +contracts of an insurer at the end of a taxation year has +the same meaning as in subsection 138(12) of the Act. +(passif au titre des sinistres survenus) +liability for remaining coverage for a group of insur- +ance contracts of an insurer at the end of a taxation year +has the same meaning as in subsection 138(12) of the Act. +(passif au titre de la couverture restante) +mortgage insurance has the same meaning as in the +schedule to the Insurance Companies Act. (assurance +hypothécaire) +reinsurance contract held amount for a group of rein- +surance contracts held by an insurer at the end of a taxa- +tion year has the same meaning as in subsection 138(12) +of the Act. (montant au titre des contrats de réassu- +rance détenus) +title insurance has the same meaning as in the schedule +to the Insurance Companies Act. (assurance de titres) +(4) Subsections 1408(2), (4), (7) and (8) of the Reg- +ulations are repealed. +(5) Subsections (1) to (4) apply to taxation years +that begin after 2022. +85 (1) The definitions Canadian outstanding premi- +ums, foreign policy loan, mean Canadian outstand- +ing premiums, mean policy loans, outstanding pre- +miums and reinsurance recoverable in subsection +2400(1) of the Regulations are repealed. +(2) The definitions Canadian reserve liabilities, +property and casualty surplus, weighted Canadian li- +abilities and weighted total liabilities in subsection +2400(1) of the Regulations are replaced by the fol- +lowing: +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Sections 84-85 + +Page 113 +Canadian reserve liabilities of an insurer as at the end +of a taxation year means the amount determined by the +formula +A − A.1 + A.2 + A.3 − (0.9 × B) − (C − (0.9 × D)) +where +A +is the total of the insurer’s liabilities and reserves in- +cluding liabilities for segregated fund guarantees +(other than policyholders’ liabilities or a liability for +an obligation to pay a benefit under a segregated +fund policy in respect of which subparagraphs +1406(b)(i) and (ii) apply) reported as at the end of the +year in respect of +(a) life insurance policies in Canada, +(b) fire insurance policies issued or effected in re- +spect of property situated in Canada, and +(c) insurance policies of any other class covering +risks ordinarily within Canada at the time the pol- +icy was issued or effected; +A.1 +is the total of all amounts each of which is the +amount of an item reported by the insurer as an +insurance contract asset as at the end of the year +in respect of insurance policies described in any of +paragraphs (a) to (c) of the description of A; +A.2 +is the total of all amounts each of which is an +amount of funds withheld as at the end of the year +by the insurer in respect of the reinsurance of a +risk under an insurance policy described in any of +paragraphs (a) to (c) of the description of A; +A.3 +is the total of all amounts each which is an +amount recoverable as at the end of the year by +the insurer under a funds withheld arrangement +in respect of the reinsurance of a risk by the insur- +er under an insurance policy described in any of +paragraphs (a) to (c) of the description of A; +B +is the total of all amounts each of which is, in respect +of a group of insurance contracts of the insurer at the +end of the year, +(a) the contractual service margin for the group, if +no portion of the contractual service margin is in +respect of a policy other than a policy that +(i) is described in any of paragraphs (a) to (c) +of the description of A, +(ii) is +(A) a life insurance policy in Canada, +(B) a policy that insures risk in respect of a +financial loss of a lender on a loan made on +the security of real property, +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +85 + +Page 114 +(C) a non-cancellable or guaranteed re- +newable accident and sickness policy in +respect of accident and sickness insurance +(as defined in subsection 1408(1)), or +(D) a policy in respect of title insurance (as +defined in subsection 1408(1)), and +(iii) is not a segregated fund policy, and +(b) in any other case, the amount that would be +the contractual service margin for the group if the +amount excluded the portion that is in respect of +policies other than policies that meet the condi- +tions in subparagraphs (a)(i) to (iii); +C +is the total of all amounts each of which is an +amount, in respect of a group of reinsurance con- +tracts held by the insurer at the end of the year, that +is +(a) the reinsurance contract held amount for the +group, if no portion of the reinsurance contract +held amount is in respect of the reinsurance of +(i) a risk under a policy other than a policy that +meets the condition in subparagraph (a)(i) of +the description of B, or +(ii) an obligation to pay a benefit under a seg- +regated fund policy in respect of which sub- +paragraphs 1406(b)(i) and (ii) apply, and +(b) in any other case, the amount that would be +the reinsurance contract held amount for the +group if the amount were determined excluding +any portion that is in respect of the reinsurance of +either +(i) a risk under a policy other than a policy that +meets the condition under subparagraph (a)(i) +of the description of B, or +(ii) an obligation to pay a benefit under a seg- +regated fund policy in respect of which sub- +paragraphs 1406(b)(i) and (ii) apply; and +D +is the total of all amounts each of which is the +amount, in respect of a group of reinsurance con- +tracts held by the insurer at the end of the year, that +is +(a) if no portion of the contractual service margin +for the group is in respect of a risk under a policy +other than a policy that meets the conditions in +subparagraphs (a)(i) to (iii) of the description of +B, the contractual service margin for the group, +and +(b) in any other case, the amount that would be +the contractual service margin for the group if the +amount were determined excluding any portion +that is in respect of the reinsurance of a risk under +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +85 + +Page 115 +a policy other than a policy that meets the condi- +tions in subparagraphs (a)(i) to (iii) of the descrip- +tion of B. (passif de réserve canadienne) +property and casualty surplus of an insurer for a taxa- +tion year means the amount determined by the formula +0.075 × (A + B + C + D − E − F) + 0.5 × (G + H) +where +A +is the total of all amounts each of which is the liabili- +ty for remaining coverage for a group of insurance +contracts of the insurer at the end of the year that is +in respect of property and casualty insurance; +B +is the total of all amounts each of which is the liabili- +ty for remaining coverage for a group of insurance +contracts of the insurer at the end of the preceding +taxation year that is in respect of property and casu- +alty insurance; +C +is the total of all amounts each of which is the liabili- +ty for incurred claims for a group of insurance con- +tracts of the insurer at the end of the year that is in +respect of property and casualty insurance; +D +is the total of all amounts each of which is the liabili- +ty for incurred claims for a group of insurance con- +tracts of the insurer at the end of the preceding taxa- +tion year that is in respect of property and casualty +insurance; +E +is the total of all amounts each of which is an +amount, in respect of a group of reinsurance con- +tracts held by the insurer at the end of the year, that +is +(a) if no portion of the reinsurance contract held +amount for the group is in respect of the reinsur- +ance of a risk under a policy other than a policy +that is in respect of property and casualty insur- +ance, the reinsurance contract held amount for +the group, and +(b) in any other case, the amount that would be +the reinsurance contract held amount for the +group if the reinsurance contract held amount +were determined excluding any portion that is in +respect of the reinsurance of a risk under a policy +other than policies in respect of property and ca- +sualty insurance; +F +is the total of all amounts each of which is an +amount, in respect of a group of reinsurance con- +tracts held by the insurer at the end of the preceding +taxation year, that is +(a) if no portion of the reinsurance contract held +amount for the group is in respect of the reinsur- +ance of a risk under a policy other than a policy +that is in respect of property and casualty +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +85 + +Page 116 +insurance, the reinsurance contract held amount +for the group, and +(b) in any other case, the amount that would be +the reinsurance contract held amount for the +group if the reinsurance contract held amount +were determined excluding any portion that is in +respect of the reinsurance of a risk under a policy +other than policies in respect of property and ca- +sualty insurance; +G +is the insurer’s investment valuation reserve as at the +end of the year in respect of its property and casualty +insurance business; and +H +is the insurer’s investment valuation reserve as at the +end of its preceding taxation year in respect of its +property and casualty insurance business. (excédent +provenant de l’assurance de dommages) +weighted Canadian liabilities of an insurer as at the +end of a taxation year means the amount determined by +the formula +(3 × A) + B +where +A +is the amount determined by the formula +C − (0.9 × D) − (E − (0.9 × F)) +where +C +is the total of all amounts each of which is an +amount in respect of an insurance business car- +ried on by the insurer in Canada and that is re- +ported as a liability (other than policyholders’ li- +abilities or a liability for an obligation to pay a +benefit under a segregated fund policy in respect +of which subparagraphs 1406(b)(i) and (ii) ap- +ply) as at the end of the year in respect of +(a) a life insurance policy in Canada (other +than an annuity), or +(b) an accident and sickness insurance policy, +D +is the total of all amounts each of which is an +amount, in respect of a group of insurance con- +tracts of the insurer at the end of the year, that is +(a) the contractual service margin for the +group, if no portion of the contractual service +margin is in respect of a policy other than a +policy that +(i) is described in paragraph (a) or (b) of +the description of C, +(ii) is +(A) a life insurance policy, or +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +85 + +Page 117 +(B) a non-cancellable or guaranteed +renewable accident and sickness poli- +cy in respect of accident and sickness +insurance (as defined in subsection +1408(1)), +(iii) is not a segregated fund policy, and +(iv) is in respect of an insurance business +carried on by the insurer in Canada, and +(b) in any other case, the amount that would +be the contractual service margin for the +group if the amount were determined exclud- +ing any portion that is in respect of a policy +other than a policy that meets the conditions +in subparagraphs (a)(i) to (iv), +E +is the total of all amounts each of which is an +amount, in respect of a group of reinsurance +contracts held by the insurer at the end of the +year, that is +(a) the reinsurance contract held amount for +the group, if no portion of the reinsurance +contract held amount for the group is in re- +spect of the reinsurance of +(i) a risk under a policy other than a policy +that meets the conditions under subpara- +graphs (a)(i) and (iv) of the description of +D, or +(ii) an obligation to pay a benefit under a +segregated fund policy in respect of which +subparagraphs 1406(b)(i) and (ii) apply, +and +(b) in any other case, the amount that would +be the reinsurance contract held amount for +the group if the amount were determined ex- +cluding any portion that is in respect of the +reinsurance of either +(i) a risk under a policy other than a policy +that meets the conditions under subpara- +graphs (a)(i) and (iv) of the description of +D, or +(ii) an obligation to pay a benefit under a +segregated fund policy in respect of which +subparagraphs 1406(b)(i) and (ii) apply, +and +F +is the total of all amounts each of which is the +amount, in respect of a group of reinsurance +contracts held by the insurer at the end of the +year, that is +(a) if no portion of the contractual service +margin for the group is in respect of the rein- +surance of a risk under a policy other than a +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +85 + +Page 118 +policy that meets the conditions in subpara- +graphs (a)(i) to (iv) of the description of D, +the contractual service margin for the group, +and +(b) in any other case, the amount that would +be the contractual service margin for the +group if the amount were determined exclud- +ing any portion that is in respect of the rein- +surance of a risk under a policy other than a +policy that meets the conditions in subpara- +graphs (a)(i) to (iv) of the description of D; +and +B +is the amount determined by the formula +G − (0.9 × H) − (I − (0.9 × J)) +where +G +is the total of all amounts each of which is an +amount in respect of an insurance business car- +ried on by the insurer in Canada and that is re- +ported as a liability (other than policyholders’ li- +abilities or a liability for an obligation to pay a +benefit under a segregated fund policy in respect +of which subparagraphs 1406(b)(i) and (ii) ap- +ply) as at the end of the year except to the extent +the liability is in respect of +(a) an insurance policy described in para- +graph (a) or (b) of the description of C, or +(b) a debt incurred or assumed by the insurer +to acquire a property of the insurer, +H +is the total of all amounts each of which is an +amount, in respect of a group of insurance con- +tracts of the insurer at the end of the year, that is +(a) the contractual service margin for the +group, if no portion of the contractual service +margin is in respect of a policy other than a +policy that +(i) is not described in paragraph (a) or (b) +of the description of C, +(ii) is +(A) a life insurance policy, +(B) a policy in respect of mortgage in- +surance (as defined in subsection +1408(1)), or +(C) a policy in respect of title insurance +(as defined in subsection 1408(1)), +(iii) is not a segregated fund policy, and +(iv) is in respect of an insurance business +carried on by the insurer in Canada, and +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +85 + +Page 119 +(b) in any other case, the amount that would +be the contractual service margin for the +group if the amount were determined exclud- +ing any portion that is in respect of a policy +other than a policy that meets the conditions +in subparagraphs (a)(i) to (iv), +I +is the total of all amounts each of which is an +amount, in respect of a group of reinsurance +contracts held by the insurer at the end of the +year, that is +(a) the reinsurance contract held amount for +the group, if no portion of the reinsurance +contract held amount for the group is in re- +spect of the reinsurance of +(i) a risk under a policy other than a policy +that meets the conditions under subpara- +graphs (a)(i) and (iv) of the description of +H, or +(ii) an obligation to pay a benefit under a +segregated fund policy in respect of which +subparagraphs 1406(b)(i) and (ii) apply, +and +(b) in any other case, the amount that would +be the reinsurance contract held amount for +the group if the amount were determined ex- +cluding any portion that is in respect of the +reinsurance of either +(i) a risk under a policy other than a policy +that meets the conditions under subpara- +graphs (a)(i) and (iv) of the description of +H, or +(ii) an obligation to pay a benefit under a +segregated fund policy in respect of which +subparagraphs 1406(b)(i) and (ii) apply, +and +J +is the total of all amounts each of which is the +amount, in respect of a group of reinsurance +contracts held by the insurer at the end of the +year, that is +(a) if no portion of the contractual service +margin for the group is in respect of a risk un- +der a policy other than a policy that meets the +conditions in subparagraphs (a)(i) to (iv) of +the description of H, the contractual service +margin for the group, and +(b) in any other case, the amount that would +be the contractual service margin for the +group if the amount were determined exclud- +ing any portion that is in respect of the rein- +surance of a risk under a policy other than a +policy +that +meets +the +conditions +in +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +85 + +Page 120 +subparagraphs (a)(i) to (iv) of the description +of H. (passif canadien pondéré) +weighted total liabilities of an insurer as at the end of a +taxation year means the amount determined by the for- +mula +(3 × A) + B +where +A +is the amount determined by the formula +C − (0.9 × D) − (E − (0.9 × F)) +where +C +is the total of all amounts each of which is an +amount in respect of an insurance business car- +ried on by the insurer and that is reported as a li- +ability (other than policyholders’ liabilities or a +liability for an obligation to pay a benefit under a +segregated fund policy in respect of which sub- +paragraphs 1406(b)(i) and (ii) apply) as at the +end of the year in respect of +(a) a life insurance policy (other than an an- +nuity), or +(b) an accident and sickness insurance policy, +D +is the total of all amounts each of which is an +amount, in respect of a group of insurance con- +tracts of the insurer at the end of the year, that is +(a) the contractual service margin for the +group, if no portion of the contractual service +margin is in respect of a policy other than a +policy that +(i) is described in paragraph (a) or (b) of +the description of C, +(ii) is +(A) a life insurance policy, or +(B) a non-cancellable or guaranteed +renewable accident and sickness poli- +cy in respect of accident and sickness +insurance (as defined in subsection +1408(1)), and +(iii) is not a segregated fund policy, and +(b) in any other case, the amount that would +be the contractual service margin for the +group if the amount were determined exclud- +ing any portion that is in respect of a policy +other than a policy that meets the conditions +in subparagraphs (a)(i) to (iii), +E +is the total of all amounts each of which is an +amount, in respect of a group of reinsurance +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +85 + +Page 121 +contracts held by the insurer at the end of the +year, that is +(a) the reinsurance contract held amount for +the group, if no portion of the reinsurance +contract held amount for the group is in re- +spect of the reinsurance of +(i) a risk under a policy other than a policy +that meets the condition under subpara- +graph (a)(i) of the description of D, or +(ii) an obligation to pay a benefit under a +segregated fund policy in respect of which +subparagraphs 1406(b)(i) and (ii) apply, +and +(b) in any other case, the amount that would +be the reinsurance contract held amount for +the group if the amount were determined ex- +cluding any portion that is in respect of the +reinsurance of either +(i) a risk under a policy other than a policy +that meets the condition under subpara- +graph (a)(i) of the description of D, or +(ii) an obligation to pay a benefit under a +segregated fund policy in respect of which +subparagraphs 1406(b)(i) and (ii) apply, +and +F +is the total of all amounts each of which is the +amount, in respect of a group of reinsurance +contracts held by the insurer at the end of the +year, that is +(a) if no portion of the contractual service +margin for the group is in respect of the rein- +surance of a risk under a policy other than a +policy that meets the conditions in subpara- +graphs (a)(i) to (iii) of the description of D, +the contractual service margin for the group, +and +(b) in any other case, the amount that would +be the contractual service margin for the +group if the amount were determined exclud- +ing any portion that is in respect of the rein- +surance of a risk under a policy other than a +policy that meets the conditions in subpara- +graphs (a)(i) to (iii) of the description of D; +and +B +is the amount determined by the formula +G − (0.9 × H) − (I − (0.9 × J)) +where +G +is the total of all amounts each of which is an +amount in respect of an insurance business car- +ried on by the insurer and that is reported as a +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +85 + +Page 122 +liability (other than policyholders’ liabilities or a +liability for an obligation to pay a benefit under a +segregated fund policy in respect of which sub- +paragraphs 1406(b)(i) and (ii) apply) as at the +end of the year except to the extent the liability is +in respect of +(a) an insurance policy described in para- +graph (a) or (b) of the description of C, or +(b) a debt incurred or assumed by the insurer +to acquire a property of the insurer, +H +is the total of all amounts each of which is an +amount, in respect of a group of insurance con- +tracts of the insurer at the end of the year, that is +(a) the contractual service margin for the +group, if no portion of the contractual service +margin is in respect of a policy other than a +policy that +(i) is not described in paragraph (a) or (b) +of the description of C, +(ii) is +(A) a life insurance policy, +(B) a policy in respect of mortgage in- +surance (as defined in subsection +1408(1)), or +(C) a policy in respect of title insurance +(as defined in subsection 1408(1)), and +(iii) is not a segregated fund policy, and +(b) in any other case, the amount that would +be the contractual service margin for the +group if the amount were determined exclud- +ing any portion that is in respect of a policy +other than a policy that meets the conditions +in subparagraphs (a)(i) to (iii), +I +is the total of all amounts each of which is an +amount, in respect of a group of reinsurance +contracts held by the insurer at the end of the +year, that is +(a) the reinsurance contract held amount for +the group, if no portion of the reinsurance +contract held amount for the group is in re- +spect of the reinsurance of +(i) a risk under a policy other than a policy +that meets the condition under subpara- +graph (a)(i) of the description of H, or +(ii) an obligation to pay a benefit under a +segregated fund policy in respect of which +subparagraphs 1406(b)(i) and (ii) apply, +and +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +85 + +Page 123 +(b) in any other case, the amount that would +be the reinsurance contract held amount for +the group if the amount were determined ex- +cluding any portion that is in respect of the +reinsurance of either +(i) a risk under a policy other than a policy +that meets the condition under subpara- +graph (a)(i) of the description of H, or +(ii) an obligation to pay a benefit under a +segregated fund policy in respect of which +subparagraphs 1406(b)(i) and (ii) apply, +and +J +is the total of all amounts each of which is the +amount, in respect of a group of reinsurance +contracts held by the insurer at the end of the +year, that is +(a) if no portion of the contractual service +margin for the group is in respect of a risk un- +der a policy other than a policy that meets the +conditions in subparagraphs (a)(i) to (iii) of +the description of H, the contractual service +margin for the group, and +(b) in any other case, the amount that would +be the contractual service margin for the +group if the amount were determined exclud- +ing any portion that is in respect of the rein- +surance of a risk under a policy other than a +policy that meets the conditions in subpara- +graphs (a)(i) to (iii) of the description of H. +(passif total pondéré) +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +85 + +Page 124 +(3) Subparagraph (a)(i) of the definition Canadian +investment fund in subsection 2400(1) of the Regu- +lations is replaced by the following: +(i) the amount of the insurer’s Canadian reserve li- +abilities as at the end of the year (to the extent that +the amount exceeds the amount of surplus appro- +priations included in that amount), and +(4) Clause (a)(ii)(B) of the definition Canadian in- +vestment fund in subsection 2400(1) of the Regula- +tions is replaced by the following: +(B) the amount determined by the formula +(I − (0.9 × I.1) − (J − (0.9 × J.1)) + K + L) × (M ÷ N) +where +I +is the total of all amounts each of which is +the amount of an item reported as an asset +of the insurer as at the end of the year (other +than an item that at no time in the year was +used or held by the insurer in the course of +carrying on an insurance business), +I.1 +is the total of all amounts each of which is +the amount, in respect of a group of rein- +surance contracts held by the insurer at +the end of the year, that is +(I) if no portion of the contractual service +margin for the group is in respect of a risk +under a segregated fund policy, the con- +tractual service margin for the group, and +(II) in any other case, the amount that +would be the contractual service margin +for the group if the contractual service +margin were determined excluding any +portion that is in respect of the reinsur- +ance of a risk under a segregated fund +policy, +J +is the total of all amounts each of which is +the amount of an item reported as a liability +of the insurer (other than policyholders’ lia- +bilities or a liability that was at any time in +the year connected with an asset that was +not used or held by the insurer in the course +of carrying on an insurance business at any +time in the year) as at the end of the year in +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +85 + +Page 125 +respect of an insurance business carried on +by the insurer in the year, +J.1 +is the total of all amounts each of which is +the contractual service margin for a group +of insurance contracts of the insurer at +the end of the year (other than a group of +segregated fund policies), +K +is the total of all amounts each of which is an +amount of a deferred realized net gain or an +amount expressed as a negative number of a +deferred realized net loss of the insurer as at +the end of the year, +L +is the total of all amounts each of which is an +amount of an item reported by the insurer as +at the end of the year as a general provision +or allowance for impairment in respect of in- +vestment property of the insurer for the +year, +M +is the amount of the insurer’s weighted +Canadian liabilities as at the end of the year, +and +N +is the amount of the insurer’s weighted total +liabilities as at the end of the year; and +(5) Subparagraph (b)(i) of the definition Canadian +investment fund in subsection 2400(1) of the Regu- +lations is replaced by the following: +(i) the amount of the insurer’s Canadian reserve li- +abilities as at the end of the year, and +(6) Subparagraph (i)(ii) of the definition Canadi- +an investment property in subsection 2400(1) of the +Regulations is replaced by the following: +(ii) is supporting the insurer’s Canadian insurance +contract liabilities for the year. (bien de placement +canadien) +(7) Subparagraph (b)(i) of the definition equity +limit in subsection 2400(1) of the Regulations is re- +placed by the following: +(i) the insurer’s mean Canadian reserve liabilities +for the year, and +(8) Subparagraph (c)(ii) of the definition equity +limit in subsection 2400(1) of the Regulations is re- +placed by the following: +(ii) 25% of the insurer’s mean Canadian reserve lia- +bilities for the year, and +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +85 + +Page 126 +(9) Subparagraph (e)(ii) of the definition invest- +ment property in subsection 2400(1) of the Regula- +tions is replaced by the following: +(ii) is supporting the insurer’s Canadian insurance +contract liabilities for the year. (bien de place- +ment) +(10) Paragraphs (a) and (b) of the definition val- +ue in subsection 2400(1) of the Regulations are re- +pealed. +(11) The portion of paragraph (c) of the defini- +tion value in subsection 2400(1) of the Regulations +before subparagraph (i) is replaced by the fol- +lowing: +(c) in the case of a property that was not owned by the +owner throughout the year, the amount, if any, by +which +(12) Subsection 2400(1) of the Regulations is +amended by adding the following in alphabetical +order: +contractual service margin for a group of insurance +contracts of an insurer, or a group of reinsurance con- +tracts held by the insurer, at the end of a taxation year, +has the same meaning as in subsection 138(12) of the Act. +(marge sur services contractuels) +group of insurance contracts of an insurer has the +same meaning as in subsection 138(12) of the Act. +(groupe de contrats d’assurance) +group of reinsurance contracts held by an insurer has +the same meaning as in subsection 138(12) of the Act. +(groupe de contrats de réassurance) +group of segregated fund policies of an insurer has +the same meaning as in subsection 138(12) of the Act. +(groupe de polices à fonds réservé) +liability for incurred claims for a group of insurance +contracts of an insurer at the end of a taxation year has +the same meaning as in subsection 138(12) of the Act. +(passif au titre des sinistres survenus) +liability for remaining coverage for a group of insur- +ance contracts of an insurer at the end of a taxation year +has the same meaning as in subsection 138(12) of the Act. +(passif au titre de la couverture restante) +policyholders’ liabilities of an insurer at the end of a +taxation year has the same meaning as in subsection +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +85 + +Page 127 +138(12) of the Act. (obligation envers les titulaires de +polices) +reinsurance contract held amount for a group of rein- +surance contracts held by an insurer at the end of a taxa- +tion year has the same meaning as in subsection 138(12) +of the Act. (montant au titre des contrats de réassu- +rance détenus) +(13) Subsection 2400(3) of the Regulations and the +heading before it are repealed. +(14) Section 2400 of the Regulations is amended +by adding the following after subsection (9): +(10) A computation that is required to be made under +this Part in respect of an insurer’s taxation year that im- +mediately precedes the first taxation year that begins af- +ter 2022 and that is relevant to a computation (in this +subsection referred to as the “transition year computa- +tion”) that is required to be made under this Part in re- +spect of the insurer’s first taxation year that begins after +2022 shall, for the purposes only of the transition year +computation, be made using the same definitions, rules +and methodologies that are used in the transition year +computation. +(15) Subsections (1) to (13) apply to taxation +years that begin after 2022. +(16) Subsection (14) comes into force or is +deemed to have come into force on January 1, +2023. +86 (1) Paragraphs 2401(2)(a) to (c) of the Regula- +tions are replaced by the following: +(a) shall designate for a taxation year investment +property of the insurer for the year with a total value +for the year equal to the insurer’s mean Canadian re- +serve liabilities for the year in respect of its life insur- +ance business in Canada; +(b) shall designate for a taxation year investment +property of the insurer for the year with a total value +for the year equal to the insurer’s mean Canadian re- +serve liabilities for the year in respect of its accident +and sickness insurance business in Canada; +(c) shall designate for a taxation year in respect of the +insurer’s insurance business in Canada (other than a +life insurance business or an accident and sickness in- +surance business) investment property of the insurer +for the year with a total value for the year equal to the +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Sections 85-86 + +Page 128 +amount of the insurer’s mean Canadian reserve liabili- +ties for the year in respect of that business; +(2) Subsection (1) applies to taxation years that +begin after 2022. +87 (1) The portion of subsection 4802(1.1) of the +Regulations before paragraph (a) is replaced by +the following: +(1.1) For the purposes of subparagraph 127.55(f)(iii) and +paragraphs 149(1)(o.4) and 150(1.2)(i) of the Act, a trust +is prescribed at any particular time if, at all times after its +creation and before the particular time, +(2) Subsection (1) applies to taxation years that +end after December 30, 2023. +88 (1) Subsection 4900(5) of the Regulations is re- +placed by the following: +(5) For the purposes of paragraph (e) of the definition +qualified investment in subsection 146.1(1) of the Act, +paragraph (d) of the definition qualified investment in +subsection 146.4(1) of the Act and paragraph (c) of the +definition qualified investment in subsection 207.01(1) +of the Act, a property is prescribed as a qualified invest- +ment for a trust governed by a FHSA, a registered dis- +ability savings plan, a registered education savings plan +or a TFSA at any time if at that time the property is an +interest in a trust or a share of the capital stock of a cor- +poration that was a registered investment for a trust gov- +erned by a registered retirement savings plan during the +calendar year in which that time occurs or during the +preceding year. +(2) The portion of subsection 4900(14) of the Reg- +ulations before paragraph (a) is replaced by the +following: +(14) For the purposes of paragraph (d) of the definition +qualified investment in subsection 146(1) of the Act, +paragraph (e) of the definition qualified investment in +subsection 146.1(1) of the Act, paragraph (c) of the defi- +nition qualified investment in subsection 146.3(1) of the +Act and paragraph (c) of the definition qualified invest- +ment in subsection 207.01(1) of the Act, a property is +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Sections 86-88 + +Page 129 +prescribed as a qualified investment for a trust governed +by a FHSA, RESP, RRIF, RRSP or TFSA at any time if, at +the time the property was acquired by the trust, the prop- +erty +(3) Subparagraph 4900(14)(a)(iii) of the Regula- +tions is replaced by the following: +(iii) a qualifying share in respect of a specified co- +operative corporation and the FHSA, RESP, RRIF, +RRSP or TFSA; and +(4) Subsection 4900(15) of the Regulations is re- +placed by the following: +(15) For the purposes of the definition prohibited in- +vestment in subsection 207.01(1) of the Act, property +that is a qualified investment for a trust governed by a +FHSA, RESP, RRIF, RRSP or TFSA solely because of sub- +section (14) is prescribed property for the trust at any +time if, at that time, the property is not described in any +of subparagraphs (14)(a)(i) to (iii). +(5) Subsections (1) to (4) come into force on April +1, 2023. +89 (1) Subparagraph (a)(i) of the definition quali- +fied zero-emission technology manufacturing activi- +ties in section 5202 of the Regulations is amended +by adding the following after clause (E): +(E.1) air-source heat pump equipment designed +for space or water heating, +(2) Subsection (1) is deemed to have come into +force on January 1, 2022. +90 (1) The definition total reserve liabilities in sec- +tion 8600 of the Regulations is replaced by the fol- +lowing: +total reserve liabilities of an insurer as at the end of a +taxation year means the amount determined by the for- +mula +A − A.1 + A.2 + A.3 − (0.9 × B) − (C − (0.9 × D)) +where +A +is the total of the insurer’s liabilities and reserves in- +cluding liabilities for segregated fund guarantees +(other than policyholders’ liabilities or a liability for +an obligation to pay a benefit under a segregated +fund policy in respect of which subparagraphs +1406(b)(i) and (ii) apply) as at the end of the year in +respect of insurance policies, as determined for the +purposes +of +the +Superintendent +of +Financial +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Sections 88-90 + +Page 130 +Institutions, if the insurer is required by law to re- +port to the Superintendent of Financial Institutions, +or, in any other case, the superintendent of insurance +or other similar officer or authority of the province +under the laws of which the insurer is incorporated; +A.1 +is the total of all amounts each of which is the +amount of an item reported by the insurer as an +insurance contract asset as at the end of the year; +A.2 +is the total of all amounts each of which is an +amount of funds withheld as at the end of the year +by the insurer in respect of the reinsurance of a +risk under an insurance policy; +A.3 +is the total of all amounts each which is an +amount recoverable as at the end of the year by +the insurer under a funds withheld arrangement +in respect of the reinsurance of a risk by the insur- +er under an insurance policy; +B +is the total of all amounts each of which is the con- +tractual service margin for a group of insurance con- +tracts (other than a group of segregated fund poli- +cies) of the insurer at the end of the year; +C +is the total of all amounts each of which is an +amount, in respect of a group of reinsurance con- +tracts held by the insurer at the end of the year, that +is +(a) the reinsurance contract held amount for the +group, if there is no reinsurance contract held +amount for the group that is in respect of the rein- +surance of an obligation to pay a benefit under a +segregated fund policy in respect of which sub- +paragraphs 1406(b)(i) and (ii) apply, and +(b) in any other case, the amount that would be +the reinsurance contract held amount for the +group if the reinsurance contract held amount +were determined excluding any portion that is in +respect of the reinsurance of an obligation to pay a +benefit under a segregated fund policy in respect +of which subparagraphs 1406(b)(i) and (ii) apply; +and +D +is the total of all amounts each of which is the +amount, in respect of a group of reinsurance con- +tracts held by the insurer at the end of the year, that +is +(a) if no portion of the contractual service margin +for the group is in respect of a risk under a segre- +gated fund policy, the contractual service margin +for the group, and +(b) in any other case, the amount that would be +the contractual service margin for the group if the +contractual service margin were determined ex- +cluding any portion that is in respect of the +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +90 + +Page 131 +reinsurance of a risk under a segregated fund poli- +cy; (passif total de réserve) +(2) Section 8600 of the Regulations is amended by +adding the following in alphabetical order: +contractual service margin for a group of insurance +contracts of an insurer, or a group of reinsurance con- +tracts held by the insurer, at the end of a taxation year, +has the same meaning as in subsection 138(12) of the Act; +(marge sur services contractuels) +group of insurance contracts of an insurer has the +same meaning as in subsection 138(12) of the Act; +(groupe de contrats d’assurance) +group of reinsurance contracts held by an insurer has +the same meaning as in subsection 138(12) of the Act; +(groupe de contrats de réassurance) +group of segregated fund policies of an insurer has +the same meaning as in subsection 138(12) of the Act; +(groupe de polices à fonds réservé) +policyholders’ liabilities of an insurer at the end of a +taxation year has the same meaning as in subsection +138(12) of the Act; (obligation envers les titulaires de +polices) +reinsurance contract held amount for a group of rein- +surance contracts held by an insurer at the end of a taxa- +tion year has the same meaning as in subsection 138(12) +of the Act; (montant au titre des contrats de réassu- +rance détenus) +(3) Subsections (1) and (2) apply to taxation years +that begin after 2022. +91 (1) Subsections 8605(1) and (2) of the Regula- +tions are replaced by the following: +8605 (1) For +the +purposes +of +subclause +181.3(1)(c)(ii)(A)(II) and clause 190.11(b)(i)(B) of the +Act, the amount prescribed in respect of a particular cor- +poration for a taxation year ending at a particular time is +the total of all amounts each of which is the amount de- +termined in respect of a corporation that is, at the partic- +ular time, a foreign insurance subsidiary of the particular +corporation, determined by the formula +A − B +where +A +is the amount determined by the formula +C + D + (0.9 × E) − (0.9 × F) − G +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Sections 90-91 + +Page 132 +where +C +is the amount of the subsidiary’s long-term debt +at the end of the subsidiary’s last taxation year +ending at or before the particular time (in this +subsection referred to as the “last taxation +year”), +D +is the total amount at the end of the subsidiary’s +last taxation year of the subsidiary’s +(a) capital stock (or, in the case of an insur- +ance corporation incorporated without share +capital, the amount of its members’ contribu- +tions), +(b) retained earnings, +(c) accumulated other comprehensive in- +come, +(d) policyholders’ liabilities, +(e) contributed surplus, and +(f) any other surpluses, +E +is total of all amounts each of which is the con- +tractual service margin for a group of insurance +contracts of the subsidiary at the end of the sub- +sidiary’s last taxation year other than a group of +segregated fund policies, +F +is the total of all amounts each of which is the +amount, in respect of a group of reinsurance +contracts held by the subsidiary at the end of the +subsidiary’s last taxation year, that is +(a) if no portion of the contractual service +margin for the group is in respect of a risk un- +der a segregated fund policy, the contractual +service margin for the group, and +(b) in any other case, the amount that would +be the contractual service margin for the +group if the amount were determined exclud- +ing any portion that is in respect of the rein- +surance of a risk under a segregated fund pol- +icy, and +G +is the amount of any deficit deducted in comput- +ing the subsidiary’s shareholders’ equity at the +end of the subsidiary’s last taxation year; and +B +is the amount determined by the formula +H + I +where +H +is the total of all amounts each of which is the +carrying value to its owner at the particular time +for the taxation year that includes the particular +time of a share of the subsidiary’s capital stock +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Section +91 + +Page 133 +or its long-term debt that is owned at the partic- +ular time by +(a) the particular corporation, +(b) a subsidiary of the particular corporation, +(c) a corporation +(i) that is resident in Canada, +(ii) that carried on a life insurance busi- +ness in Canada at any time in its taxation +year ending at or before the particular +time, and +(iii) that is +(A) a corporation of which the particu- +lar corporation is a subsidiary, or +(B) a subsidiary of a corporation de- +scribed in clause (A), or +(d) a subsidiary of a corporation described in +paragraph (c), and +I +is the total of all amounts each of which is an +amount included under the description of A in +respect of any surplus of the subsidiary con- +tributed by a corporation described in para- +graphs (a) to (d) of the description of H, other +than an amount included under the description +of H. +(2) For the purposes of subclause 181.3(1)(c)(ii)(A)(III) +and clause 190.11(b)(i)(C) of the Act, the amount pre- +scribed in respect of a particular corporation for a taxa- +tion year ending at a particular time is the total of all +amounts each of which is the amount determined in re- +spect of a corporation that is, at the particular time, a for- +eign insurance subsidiary of the particular corporation, +determined by the formula +A − B +where +A +is the amount determined for B in subsection (1) in +respect of the subsidiary, and +B +is the amount determined for A in subsection (1) in +respect of the subsidiary. +(2) Subsection (1) applies to taxation years that +begin after 2022. +92 (1) Clause (d)(i)(A) of Class 43.1 in Schedule II +to the Regulations is amended by striking out +“or” at the end of subclause (I), by replacing +“and” with “or” at the end of subclause (II) and +by adding the following after subclause (II): +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Sections 91-92 + +Page 134 +(III) equipment that is part of an air-source +heat pump system that transfers heat from +the outside air, including refrigerant piping, +energy conversion equipment, thermal energy +storage equipment, control equipment and +equipment designed to enable the system to +interface with other heating and cooling +equipment, and +(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), (II) or (III) nor equipment that +distributes heated or cooled air or water in a +building, +(3) Subsections (1) and (2) apply to property ac- +quired after April 6, 2022 that has not been used +or acquired for use before April 7, 2022. +PART 2 +Amendments to the Excise Act, +2001 and Other Related Texts +2002, c. 22 +Excise Act, 2001 +93 The definition responsible in section 2 of the +Excise Act, 2001 is replaced by the following: +responsible, in relation to a person, means that +(a) in the case of bulk alcohol, the person is responsi- +ble for the bulk alcohol in accordance with sections +104 to 121; +(b) in the case of a cannabis product, the person is re- +sponsible for the cannabis product in accordance with +sections 158.17 and 158.18; and +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 1 Amendments to the Income Tax Act and Other Legislation +Income Tax Regulations +Sections 92-93 + +Page 135 +(c) in the case of a vaping product, the person is re- +sponsible for the vaping product in accordance with +sections 158.54 to 158.56. (responsable) +94 Section 158.01 of the Act is amended by strik- +ing out “or” at the end of paragraph (b), by +adding “or” at the end of paragraph (c) and by +adding the following after paragraph (c): +(d) cannabis products that are in the possession of a +holder of a licence referred to in paragraph 8(1)(e) or +(f) of the Cannabis Regulations, but only to the extent +that those cannabis products are used by the holder of +the licence in activities that are not prohibited for +those cannabis products under the conditions of the li- +cence or the Cannabis Act. +95 Section 158.13 of the Act is replaced by the fol- +lowing: +Packaging and stamping of cannabis +158.13 A particular cannabis licensee shall not enter a +cannabis product into the duty-paid market unless +(a) the cannabis product is packaged; +(b) the package has printed on it prescribed informa- +tion; +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 2 Amendments to the Excise Act, 2001 and Other Related Texts +Excise Act, 2001 +Sections 93-95 + +Page 136 +(c) the cannabis product is stamped — using a +cannabis excise stamp that has been issued to the par- +ticular cannabis licensee and that indicates that +cannabis duty has been paid — by +(i) the particular cannabis licensee, or +(ii) another cannabis licensee if prescribed condi- +tions are met; +(d) if the cannabis product is to be entered in the du- +ty-paid market of a specified province, the cannabis +product is stamped — using a cannabis excise stamp +that has been issued to the particular cannabis li- +censee and that indicates that additional cannabis du- +ty in respect of the specified province has been paid — +by +(i) the particular cannabis licensee, or +(ii) another cannabis licensee if prescribed condi- +tions are met; and +(e) the particular cannabis licensee is responsible for +the cannabis product immediately before it is +stamped. +96 Subsections 158.19(2) to (4) of the Act are re- +placed by the following: +Imposition — ad valorem duty +(2) Duty is imposed on packaged and stamped cannabis +products produced in Canada at the time of their delivery +to a purchaser in the amount determined under section 2 +of Schedule 7. +Duty payable +(3) The greater of the duty imposed under subsection (1) +and the duty imposed under subsection (2) is payable by +the cannabis licensee that is responsible for the cannabis +products immediately before those products are stamped +and those products are relieved of the lesser of those du- +ties. The greater of those duties is payable at the time of +the delivery of the cannabis products to a purchaser. +Equal duties +(4) If the amount of duty imposed under subsection (1) +is equal to the amount of duty imposed under subsection +(2), the duty imposed under subsection (1) is payable by +the cannabis licensee that is responsible for the cannabis +products immediately before those products are stamped +and those products are relieved of the duty imposed +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 2 Amendments to the Excise Act, 2001 and Other Related Texts +Excise Act, 2001 +Sections 95-96 + +Page 137 +under subsection (2). The duty imposed under subsection +(1) is payable at the time of the delivery of the cannabis +products to a purchaser. +97 Subsection 158.2(2) of the Act is replaced by +the following: +Duty payable +(2) The duty imposed under subsection (1) is payable by +the cannabis licensee that is responsible for the cannabis +products immediately before those products are stamped +and that duty is payable at the time of their delivery to a +purchaser. +98 (1) Subsection 159.1(1) of the Act is replaced +by the following: +Reporting period — general +159.1 (1) Subject to this section and section 159.2, the +reporting period of a person is a fiscal month. +(2) Subsection (1) is deemed to have come into +force on April 1, 2022. +99 (1) The Act is amended by adding the follow- +ing after section 159.1: +Definitions +159.2 (1) The following definitions apply in this section. +calendar quarter means a period of three months be- +ginning on the first day of January, April, July or Octo- +ber. (trimestre civil) +threshold amount of a cannabis licensee for a calendar +quarter means the amount that is the total of all duties +payable under Part 4.1 by the cannabis licensee, and any +person associated with the cannabis licensee, in the im- +mediately preceding four calendar quarters. (montant +déterminant) +Reporting period — calendar quarters +(2) On application by a cannabis licensee, the Minister +may, in writing, authorize the reporting periods of the +cannabis licensee to be calendar quarters, beginning on +the first day of a particular calendar quarter, if the +threshold amount of the cannabis licensee for the partic- +ular calendar quarter does not exceed $1,000,000. +Application — form and filing +(3) An application made by a cannabis licensee under +subsection (2) is to be +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 2 Amendments to the Excise Act, 2001 and Other Related Texts +Excise Act, 2001 +Sections 96-99 + +Page 138 +(a) made in prescribed form containing prescribed in- +formation; and +(b) filed with the Minister in prescribed manner on or +before the last day of the first month of the calendar +quarter for which the authorization is to take effect or +any later day that the Minister may allow. +Deemed revocation +(4) An authorization under subsection (2) in respect of a +cannabis licensee is deemed to be revoked at the begin- +ning of a calendar quarter if the threshold amount of the +cannabis +licensee +for +the +calendar +quarter +ex- +ceeds $1,000,000. +Revocation by Minister +(5) The Minister may revoke an authorization under sub- +section (2) in respect of a cannabis licensee if +(a) the cannabis licensee requests in writing that the +Minister do so; +(b) the cannabis licensee fails to comply with the Act; +or +(c) the Minister considers that the authorization is no +longer required. +Notice of revocation +(6) If the Minister revokes an authorization in respect of +a cannabis licensee, the Minister shall send a notice in +writing of the revocation to the cannabis licensee and +shall specify in the notice the fiscal month of the +cannabis licensee for which the revocation becomes ef- +fective. +Deemed reporting period on revocation +(7) If a revocation under subsection (4) or (5) of an au- +thorization under subsection (2) in respect of a cannabis +licensee becomes effective before the last day of a calen- +dar quarter, the period beginning on the first day of the +calendar quarter and ending immediately before the first +day of the fiscal month of the cannabis licensee for which +the revocation becomes effective is deemed to be a re- +porting period of the cannabis licensee. +(2) Subsection (1) is deemed to have come into +force on April 1, 2022. +100 The portion of section 234.1 of the Act before +the formula is replaced by the following: +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 2 Amendments to the Excise Act, 2001 and Other Related Texts +Excise Act, 2001 +Sections 99-100 + +Page 139 +Contravention of section 158.02, 158.1, 158.11 or +158.12 +234.1 Every person that contravenes section 158.02, +158.1, 158.11 or 158.12 is liable to a penalty equal to the +amount determined by the formula +101 Subsection 304(1) of the Act is amended by +adding the following after paragraph (n): +(n.1) respecting the packaging or stamping, and entry +into the duty-paid market, by a cannabis licensee of +cannabis products that are owned or produced by an- +other cannabis licensee, subject to an authorization of +the Minister and any conditions that the Minister con- +siders appropriate, and prescribing joint and several, +or solidary, liability or penalties in respect of those +cannabis products; +2022, c. 10 +Budget Implementation Act, 2022, +No. 1 +102 (1) The portion of subsection 128(3) of the +Budget Implementation Act, 2022, No. 1 before +paragraph (a) is replaced by the following: +(3) Sections 158.42 to 158.47 and 158.49 and subsec- +tion 158.5(2) of the Excise Act, 2001, as enacted by +section 59, subsection 63(1) and sections 107 to 109 +come into force on October 1, 2022. However, +those provisions of the Excise Act, 2001, subsec- +tion 63(1) and sections 107 to 109 do not apply be- +fore 2023 in respect of +(2) Section 128 of the Act is amended by adding +the following after subsection (3): +(3.1) Sections 158.54 to 158.56, 158.6 and 158.61 of +the Excise Act, 2001, as enacted by section 59, +come into force on October 1, 2022. However, +those sections of the Excise Act, 2001 do not apply +in respect 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. +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 2 Amendments to the Excise Act, 2001 and Other Related Texts +Excise Act, 2001 +Sections 100-102 + +Page 140 +SOR/86-991 +Storage of Goods Regulations +103 (1) Subsection 3(4) of the Storage of Goods +Regulations is replaced by the following: +(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 customs office +within 14 days after the day on which they were reported +under section 12 of the Act. +(2) Subsection (1) is deemed to have come into +force on October 1, 2022. +SOR/2003-115 +Regulations Respecting Excise +Licences and Registrations +104 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, cannabis products or vaping prod- +ucts or any regulations made under it, or +105 Section 4 of the Regulations is replaced by +the following: +4 A licence is valid for the period specified in the licence, +which period +(a) in the case of a cannabis licence issued to a person, +shall end on or before the date of expiry of the licence +or permit issued to the person under subsection 62(1) +of the Cannabis Act and shall not exceed five years; +(b) in the case of a vaping product licence, shall not +exceed three years; or +(c) in any other case, shall not exceed two years. +106 (1) Paragraph 5(2)(a) of the Regulations is +replaced by the following: +(a) a bank draft; +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 2 Amendments to the Excise Act, 2001 and Other Related Texts +Storage of Goods Regulations +Sections 103-106 + +Page 141 +(2) Paragraph 5(2)(c) of the Regulations is re- +placed by the following: +(c) a Canada Post money order; or +107 Subsection 10(1) of the Regulations is re- +placed by the following: +10 (1) The grounds for the suspension of a licence or +registration by the Minister are that the licensee or regis- +trant +(a) fails to meet any of the applicable requirements of +section 2, 3, 6, 7 or 13; +(b) fails to meet the conditions of the licence or regis- +tration; +(c) is bankrupt; +(d) ceases to carry on the business for which the li- +cence or registration was issued; +(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 of alcohol, tobacco +products, cannabis products or vaping products, or +any regulations made under it; or +(f) acts to defraud His Majesty. +108 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, cannabis products or vaping products, or +any regulations made under it; or +SOR/2003-288; 2018, c. 12, s. 108; 2022, c. 10, s. 116 +Stamping and Marking of Tobacco, +Cannabis and Vaping Products +Regulations +109 (1) The definition case in section 1 of the +Stamping and Marking of Tobacco, Cannabis +and Vaping Products Regulations is replaced by +the following: +case means a corrugated cardboard box in which pack- +ages or cartons of tobacco products, or packages of vap- +ing products, are packed primarily for the purpose of +transport and protection against damage. (caisse) +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 2 Amendments to the Excise Act, 2001 and Other Related Texts +Regulations Respecting Excise Licences and Registrations +Sections 106-109 + +Page 142 +(2) Subsection (1) is deemed to have come into +force on October 1, 2022. +110 (1) The Regulations are amended by adding +the following after section 3.5: +3.6 For the purposes of paragraph 158.46(b) of the Act, +the prescribed information is +(a) the vaping product licensee’s name and address; +(b) the vaping product licensee’s licence number; or +(c) if the vaping product is packaged by the vaping +product licensee for another person, the person’s +name and the address of their principal place of busi- +ness. +3.7 For the purposes of paragraph 158.47(1)(a) of the +Act, the prescribed information is +(a) the name and address of the manufacturer that +packaged the vaping product; +(b) if the vaping product was imported by a vaping +product licensee, the licensee’s name and address or +vaping product licence number; or +(c) if the vaping product was imported by a person +other than a vaping product licensee, the person’s +name and address. +3.8 For the purposes of paragraphs 158.46(b) and +158.47(1)(a) of the Act, the following information is pre- +scribed for cases of vaping products: +(a) the number of packages in the case; and +(b) the volume of the vaping substance in liquid form, +and the weight of the vaping substance in solid form, +contained in each package. +3.9 For the purposes of subsections 158.5(1) and (2) of +the Act, the prescribed information is +(a) for containers of vaping products manufactured in +Canada, the information set out in section 3.6; and +(b) for containers of imported vaping products, the in- +formation set out in section 3.7. +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 2 Amendments to the Excise Act, 2001 and Other Related Texts +Stamping and Marking of Tobacco, Cannabis and Vaping Products Regulations +Sections 109-110 + +Page 143 +(2) Subsection (1) is deemed to have come into +force on October 1, 2022. +111 The Regulations are amended by adding the +following after section 5: +Service Agreements in Respect +of Cannabis Products +5.1 (1) For the purposes of this section, service agree- +ment means an agreement, containing prescribed infor- +mation, between a particular cannabis licensee (other +than a cannabis licensee that is a producer of cannabis +products solely because of their packaging of cannabis +products) and another cannabis licensee under which the +other cannabis licensee is to package, or affix a cannabis +excise stamp to, cannabis products for the particular +cannabis licensee. +(2) For the purposes of this section, a service agreement +is an authorized service agreement from the effective +date of its authorization under subsection (5) until the ef- +fective date of the revocation of the authorization of the +service agreement under subsection (8). +(3) A cannabis licensee that is a party to a service agree- +ment may apply to the Minister to have the service agree- +ment authorized by the Minister for the purposes of this +section. +(4) An application under subsection (3) in respect of a +service agreement must +(a) be made in prescribed form containing prescribed +information; +(b) include a copy of the service agreement; and +(c) be filed with the Minister in prescribed manner on +or before the day that is 60 days before the proposed +effective date of the authorization of the service agree- +ment or any later day that the Minister may allow. +(5) If an application under subsection (3) in respect of a +service agreement is filed with the Minister, the Minister +must with all due dispatch +(a) consider the application and authorize or refuse to +authorize the service agreement for the purposes of +this section; and +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 2 Amendments to the Excise Act, 2001 and Other Related Texts +Stamping and Marking of Tobacco, Cannabis and Vaping Products Regulations +Sections 110-111 + +Page 144 +(b) notify the applicant in writing of the decision and, +if authorized, the effective date of the authorization. +(6) The Minister may, at any time, specify conditions +that the Minister considers appropriate in respect of a +service agreement authorized under subsection (5). +(7) If an authorized service agreement is to be amended +or is, or is to be, no longer in effect, a party to the autho- +rized service agreement must +(a) without delay so notify the Minister in writing; and +(b) if the authorized service agreement is to be +amended, make an application under subsection (3) +for the authorization of the amended service agree- +ment. +(8) If the Minister is of the opinion that a party to an au- +thorized service agreement is in contravention of the au- +thorized service agreement, that any condition specified +by the Minister under subsection (6) is not met or that +the authorized service agreement is, or is to be, no longer +in effect, the Minister +(a) may revoke the authorization of the service agree- +ment; and +(b) must, if the Minister revokes the authorization of +the service agreement, issue a notice of revocation of +the authorization of the service agreement to each par- +ty to the service agreement specifying the effective +date of the revocation. +(9) For the purposes of paragraph 158.05(2)(c) of the Act, +a prescribed person is a particular cannabis licensee that +is a party to an authorized service agreement and that +has in their possession cannabis excise stamps that +(a) are issued to the other cannabis licensee that is a +party to the authorized service agreement; and +(b) are to be affixed to a packaged cannabis product +by the particular cannabis licensee in accordance with +the authorized service agreement and in accordance +with applicable conditions, if any, in respect of the au- +thorized service agreement specified by the Minister +under subsection (6). +(10) For the purposes of subparagraphs 158.13(c)(ii) and +(d)(ii) of the Act, a prescribed condition is that the +cannabis product is stamped by the other cannabis li- +censee in accordance with an authorized service agree- +ment and in accordance with applicable conditions, if +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 2 Amendments to the Excise Act, 2001 and Other Related Texts +Stamping and Marking of Tobacco, Cannabis and Vaping Products Regulations +Section +111 + +Page 145 +any, in respect of the authorized service agreement speci- +fied by the Minister under subsection (6). +SOR/2019-78 +Excise Duties on Cannabis +Regulations +112 Sections 8 and 9 of the Excise Duties on +Cannabis Regulations are replaced by the fol- +lowing: +Prescribed provinces — offences +8 For the purposes of subparagraph (i) of the description +of C in paragraph 218.1(2)(a) of the Act and subpara- +graph (i) of the description of C in paragraph 218.1(3)(a) +of the Act, the following provinces are prescribed: +(a) Ontario; +(b) Saskatchewan; +(c) Alberta; and +(d) Nunavut. +Prescribed provinces — penalties +9 For the purposes of paragraph (a) of the description of +C in section 233.1 of the Act, paragraph (a) of the descrip- +tion of C in section 234.1 of the Act and subparagraph +238.1(2)(b)(iii) of the Act, the following provinces are +prescribed: +(a) Ontario; +(b) Saskatchewan; +(c) Alberta; and +(d) Nunavut. +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 2 Amendments to the Excise Act, 2001 and Other Related Texts +Stamping and Marking of Tobacco, Cannabis and Vaping Products Regulations +Sections 111-112 + +Page 146 +PART 3 +Amendments to the Underused +Housing Tax Act and Making of +Related Regulations +2022, c. 5, s. 10 +Underused Housing Tax Act +113 (1) Paragraph (a) of the definition specified +Canadian partnership in section 2 of the Underused +Housing Tax Act is replaced by the following: +(a) a partnership, each member of which +(i) is, on December 31 of the calendar year, an ex- +cluded owner or a specified Canadian corporation, +or +(ii) would be, on December 31 of the calendar year, +an excluded owner if paragraph (b) of the definition +excluded owner were read without reference to “or +as a partner of a partnership”; or +(2) Paragraph (f) of the definition propriétaire ex- +clu in section 2 of the French version of the Act is +replaced by the following: +f) une administration hospitalière, une administra- +tion scolaire, un collège public, une coopérative +d’habitation, une municipalité ou une université au +sens du paragraphe 123(1) de la Loi sur la taxe d’ac- +cise ou une organisation paramunicipale au sens de +l’article 1 de la partie VI de l’annexe V de cette loi; +(3) Subsections (1) and (2) are deemed to have +come into force on January 1, 2022. +114 (1) Paragraph 6(7)(l) of the Act is replaced by +the following: +(l) the construction of the residential property is sub- +stantially completed in January, February or March of +the calendar year, the residential property is offered +for sale to the public during the calendar year and the +residential property had never been occupied by an in- +dividual as a place of residence or lodging during the +calendar year; +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 3 Amendments to the Underused Housing Tax Act and Making of Related +Regulations +Sections 113-114 + +Page 147 +(2) Subsection (1) is deemed to have come into +force on January 1, 2022. +115 (1) The portion of subsection 47(1) of the Act +before paragraph (a) is replaced by the follow- +ing: +Failure to file +47 (1) Every person that fails to file a return as and +when required under Part 4 is liable to a penalty equal to +the greater of +(2) Subsection (1) is deemed to have come into +force on January 1, 2022. +Underused Housing Tax Regulations +Making of Regulations +Making +116 The Underused Housing Tax Regulations +are made as follows: +Underused Housing Tax Regulations +Interpretation +Definition of Act +1 In these Regulations, Act means the Underused Hous- +ing Tax Act. +Prescribed Areas and +Conditions +Definitions +2 (1) The following definitions apply in this section. +census metropolitan area means a census metropoli- +tan area within the meaning of the Statistics Canada doc- +ument entitled Standard Geographical Classification +(SGC) 2021. (région métropolitaine de recensement) +population centre means a population centre within +the meaning of the Statistics Canada document entitled +Standard Geographical Classification (SGC) 2021. +(centre de population) +specified census agglomeration means a census ag- +glomeration within the meaning of the Statistics Canada +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 3 Amendments to the Underused Housing Tax Act and Making of Related +Regulations +Underused Housing Tax Act +Sections 114-116 + +Page 148 +document entitled Standard Geographical Classification +(SGC) 2021 that has a total population of at least 30,000. +(agglomération de recensement désignée) +Paragraph 6(7)(m) of Act — prescribed areas +(2) For the purposes of paragraph 6(7)(m) of the Act, +each of the following areas is a prescribed area in respect +of a calendar year: +(a) an area that is, as determined in the last census +published by Statistics Canada before the calendar +year, neither within a census metropolitan area nor +within a specified census agglomeration; and +(b) an area that is, as determined in the last census +published by Statistics Canada before the calendar +year, +(i) within a census metropolitan area or specified +census agglomeration, and +(ii) not within a population centre. +Paragraph 6(7)(m) of Act — prescribed condition +(3) For the purposes of paragraph 6(7)(m) of the Act, a +prescribed condition, for a calendar year and in respect +of a person that is an owner of a residential property lo- +cated in an area referred to in subsection (2), is that the +residential property is used as a place of residence or +lodging by the owner or the owner’s spouse or common- +law partner for at least 28 days during the calendar year. +Returns +Social Insurance Number +3 The Minister may require an individual to provide +their Social Insurance Number in a return filed under the +Act. +Coming into Force +December 31, 2022 +117 (1) Section 1, subsection 2(1) and section 3 of +the Underused Housing Tax Regulations, as +made by section 116, come into force or are +deemed to have come into force on December 31, +2022. +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 3 Amendments to the Underused Housing Tax Act and Making of Related +Regulations +Underused Housing Tax Regulations +Making of Regulations +Sections 116-117 + +Page 149 +2022 and subsequent calendar years +(2) Subsections 2(2) and (3) of the Underused +Housing Tax Regulations, as made by section +116, apply to the 2022 and subsequent calendar +years. +Authority and Statutory Instruments Act +(3) The Underused Housing Tax Regulations, as +made by section 116, are deemed +(a) to have been made under section 84 of the +Underused Housing Tax Act; +(b) for the purposes of subsection 5(1) of the +Statutory Instruments Act, to have been +transmitted to the Clerk of the Privy Council +for registration; and +(c) to have met the publication requirements +of subsection 11(1) of the Statutory Instru- +ments Act. +PART 4 +Various Measures +DIVISION 1 +Canada Growth Fund +Acquisition of shares +118 (1) The Minister of Finance may acquire and +hold on behalf of His Majesty in right of Canada +non-voting shares of a corporation that is incor- +porated as a wholly-owned subsidiary of the +Canada Development Investment Corporation +and that is responsible for administering the +Canada Growth Fund. +Consolidated Revenue Fund +(2) On the requisition of the Minister of Finance, +there may be paid out of the Consolidated Rev- +enue Fund amounts not exceeding $2,000,000,000 +in the aggregate, or any greater amount that is +specified in an appropriation Act, for the acquisi- +tion of shares under subsection (1). +For greater certainty +119 For greater certainty, the Minister of Fi- +nance may, on behalf of His Majesty in right of +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 3 Amendments to the Underused Housing Tax Act and Making of Related +Regulations +Underused Housing Tax Regulations +Coming into Force +Sections 117-119 + +Page 150 +Canada, enter into contracts with the subsidiary +referred to in section 118. +DIVISION 2 +R.S., c. B-7; R.S., c. 24 (1st Supp.), s. 3 +Bretton Woods and Related +Agreements Act +120 Paragraphs 8.3(5)(a) and (b) of the Bretton +Woods and Related Agreements Act are replaced +by the following: +(a) $7,000,000,000 in respect of any particular foreign +state; and +(b) $14,000,000,000 in respect of all foreign states. +DIVISION 3 +Framework Agreement on First +Nation Land Management Act +SUBDIVISION A +Enactment of Act +Enactment +121 The Framework Agreement on First Nation +Land Management Act is enacted as follows: +An Act respecting the Framework Agreement on First +Nation Land Management +Preamble +Whereas Her Majesty in right of Canada and 13 First +Nations signed the Framework Agreement on First +Nation Land Management on February 12, 1996 in re- +lation to the management by those First Nations of +their lands, and other First Nations have signed the +Framework Agreement after that date; +Whereas the First Nations Land Management Act, the +purpose of which was to ratify and bring into effect +the Framework Agreement, received royal assent on +June 17, 1999; +And whereas it is appropriate to enact a new imple- +mentation Act to replace the First Nations Land +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 4 Various Measures +DIVISION 1 Canada Growth Fund +Sections 119-121 + +Page 151 +Management Act and to reflect the primacy of the +Framework Agreement, while also ensuring the con- +tinuity with the previous legal framework; +Now therefore, His 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 Framework Agreement +on First Nation Land Management Act. +Interpretation +Definitions +2 (1) The following definitions apply in this Act. +First Nation land means reserve land or lands set aside +to which a land code applies. It includes all the interests +or land rights in, and resources of, the land that are with- +in the legislative authority of Parliament. (terres de la +première nation) +First Nation law means a law that is enacted by a First +Nation in accordance with the Framework Agreement +and the land code of that First Nation. (texte législatif +de la première nation) +Framework Agreement means the Framework Agree- +ment on First Nation Land Management, signed by Her +Majesty in right of Canada and 13 First Nations on +February 12, 1996 — and signed by other First Nations af- +ter that date — as amended from time to time in accor- +dance with its provisions. (accord-cadre) +Minister means the Minister of Crown-Indigenous Rela- +tions. (ministre) +reserve has the same meaning as in subsection 2(1) of +the Indian Act. (réserve) +Definitions in Framework Agreement +(2) In this Act, First Nation, First Nation Lands Regis- +ter, interest, land code, land right, Lands Advisory +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 4 Various Measures +DIVISION 3 Framework Agreement on First Nation Land Management Act +SUBDIVISION A Enactment of Act +Section +121 + +Page 152 +Board and licence have the same meaning as in sub- +clause 1.1 of the Framework Agreement and lands set +aside has the same meaning as Lands Set Aside in that +subclause 1.1. +Not a treaty +3 The Framework Agreement is not a treaty within the +meaning of section 35 of the Constitution Act, 1982. +Binding on His Majesty +4 This Act is binding on His Majesty in right of Canada. +Framework Agreement +Force of law +5 (1) The Framework Agreement continues to have ef- +fect and has the force of law. +Rights and obligations +(2) For greater certainty, a person or body has the pow- +ers, rights, privileges, immunities and benefits conferred +on the person or body by the Framework Agreement and +must perform the duties, and is subject to the liabilities, +imposed on the person or body by the Framework Agree- +ment. +Framework Agreement binding +(3) For greater certainty, the Framework Agreement is +binding on, and may be relied on by, all persons and bod- +ies. +Framework Agreement prevails +6 (1) In the event of any inconsistency or conflict be- +tween the Framework Agreement and this Act, the +Framework Agreement prevails to the extent of the in- +consistency or conflict. +Act prevails +(2) In the event of any inconsistency or conflict between +this Act and any other federal law, this Act prevails to the +extent of the inconsistency or conflict. +Publication +7 The Minister must make available to the public +(a) the Framework Agreement that was signed by Her +Majesty in right of Canada and 13 First Nations on +February 12, 1996 and any amendments made to it; +and +(b) the most recent consolidated version of the +Framework Agreement that has been approved by the +Minister and the Lands Advisory Board. +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 4 Various Measures +DIVISION 3 Framework Agreement on First Nation Land Management Act +SUBDIVISION A Enactment of Act +Section +121 + +Page 153 +Rights and Obligations of His +Majesty in Right of Canada +Transfer +8 On the coming into force of the land code of a First Na- +tion, the rights and obligations of His Majesty in right of +Canada as grantor in respect of the interests or land +rights and the licences described in the First Nation’s in- +dividual agreement referred to in clause 6 of the Frame- +work Agreement are transferred to the First Nation in ac- +cordance with that individual agreement. +First Nation Lands Register +Register continued +9 The First Nation Land Register established by the +Minister under section 25 of the First Nations Land +Management Act, chapter 24 of the Statutes of Canada, +1999, is continued as the First Nation Lands Register. +Regulations +10 The Governor in Council may, on the recommenda- +tion of the Minister and in accordance with the Frame- +work Agreement, make regulations respecting the ad- +ministration of the First Nation Lands Register, the reg- +istration of interests or land rights in it and the recording +of any other matter in it, including but not limited to reg- +ulations respecting +(a) the effects of registering interests or land rights, +including priorities; +(b) the payment of fees for the registration of interests +or land rights and for any other service in relation to +the Register; +(c) the appointment, remuneration, powers, duties +and functions of the officers and employees who ad- +minister the Register; +(d) the keeping, by officers and employees, of docu- +ments that are not registrable; and +(e) the transfer of the administration of the Register +to any person or body and the disclosure of personal +information as defined in section 3 of the Privacy Act +for that purpose. +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 4 Various Measures +DIVISION 3 Framework Agreement on First Nation Land Management Act +SUBDIVISION A Enactment of Act +Section +121 + +Page 154 +General Provisions +Judicial notice +11 Judicial notice must be taken of the Framework +Agreement, a land code that is in force and any First Na- +tion law. +Notice +12 (1) If an issue is raised by a party in any judicial or +administrative proceeding in respect of the interpretation +or validity of a provision of the Framework Agreement, +this Act, a land code or a First Nation law, the issue must +not be decided until the party has served notice +(a) on the Attorney General of Canada and the Lands +Advisory Board, in the case of a provision of the +Framework Agreement or this Act; or +(b) on the First Nation, in the case of a provision of a +land code or a First Nation law. +Content and timing +(2) The notice must +(a) describe the proceeding; +(b) state the subject matter of the issue; +(c) state the date on which the issue is to be argued; +(d) give the particulars that are necessary to show the +point to be argued; and +(e) be served at least 30 days before the day on which +the issue is to be argued, unless the court or tribunal +authorizes a shorter period. +Participation in proceedings +(3) In any proceeding, the recipient of a notice may ap- +pear and participate as a party with the same rights as +any other party. +Clarification +(4) For greater certainty, subsections (2) and (3) do not +require that an oral hearing be held if one is not other- +wise required. +Non-application of Statutory Instruments Act +13 The Statutory Instruments Act does not apply in re- +spect of a land code, a First Nation law or an order made +under subclause 14.2.1 of the Framework Agreement. +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 4 Various Measures +DIVISION 3 Framework Agreement on First Nation Land Management Act +SUBDIVISION A Enactment of Act +Section +121 + +Page 155 +SUBDIVISION B +Transitional Provisions, +Consequential Amendments and +Repeal +Transitional Provisions +Definition of former Act +122 (1) In this section and sections 123 and 124, +former Act means the First Nations Land Man- +agement Act, chapter 24 of the Statutes of +Canada, 1999. +Other definitions +(2) In sections 123 and 124, First Nation law, Frame- +work Agreement, individual agreement, interest, +land code, licence and right have the same mean- +ing as in subsection 2(1) of the former Act, as it +read immediately before the day on which sec- +tion 143 of this Act comes into force. +Documents and decisions previously made +123 Nothing in this Act affects +(a) any land codes, individual agreements, +First Nation laws or documents, including li- +cences and other authorizations, contracts and +other instruments or acts, that were issued, +granted, entered into or made in accordance +with the former Act or the Framework Agree- +ment and that are in force on the day on which +this Act comes into force; +(b) any actions taken or decisions made, be- +fore the day on which this Act comes into +force, in accordance with the former Act or the +Framework Agreement, including the registra- +tion of an interest or right in the First Nation +Land Register, as established under section 25 +of the former Act and the establishment of pri- +orities or, in Quebec, rankings among inter- +ests or rights that have been registered. +Reference to former Act +124 Unless the context otherwise requires, any +reference to the former Act, or any provision of +that Act, in any land codes, individual agree- +ments, First Nation laws or documents referred +to in paragraph 123(a) is to be read as a reference +to the Framework Agreement on First Nation +Land Management Act or the Framework +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 4 Various Measures +DIVISION 3 Framework Agreement on First Nation Land Management Act +SUBDIVISION B Transitional Provisions, Consequential Amendments and Repeal +Sections 122-124 + +Page 156 +Agreement, or any relevant provision of that Act +or Agreement, as the case may be. +Consequential Amendments +R.S., c. I-7 +Indian Oil and Gas Act +125 Paragraph (d) of the definition first nation +lands in subsection 2(1) of the Indian Oil and Gas +Act is replaced by the following: +(d) rights and interests in reserve lands that have been +granted to Her Majesty in right of Canada for oil or +gas exploration or exploitation pursuant to a land code +adopted under the Framework Agreement as defined +in subsection 2(1) of the Framework Agreement on +First Nation Land Management Act. (terres de la +première nation) +126 Subsection 3(1) of the Act is replaced by the +following: +Instruments under other Acts +3 (1) Any licence, permit, lease or other instrument +granted under any other Act of Parliament for the pur- +pose of exploration for or exploitation of oil or gas situat- +ed in first nation lands — other than an instrument +granted under the First Nations Oil and Gas and Moneys +Management Act or an instrument granted to a person +other than Her Majesty in right of Canada under the +First Nations Land Management Act, as it read before +the coming into force of the Framework Agreement on +First Nation Land Management Act, or the Framework +Agreement, as defined in subsection 2(1) of that Act — is +subject to this Act as if the instrument were a contract. +2004, c. 17 +Westbank First Nation Self-Government +Act +127 Section 7 of the Westbank First Nation Self- +Government Act is replaced by the following: +Acts respecting reserve lands +7 The Framework Agreement on First Nation Land +Management Act and the Indian Oil and Gas Act do not +apply in respect of the Westbank First Nation, its council, +its members or Westbank lands. +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 4 Various Measures +DIVISION 3 Framework Agreement on First Nation Land Management Act +SUBDIVISION B Transitional Provisions, Consequential Amendments and Repeal +Sections 124-127 + +Page 157 +2005, c. 48 +First Nations Oil and Gas and Moneys +Management Act +128 Subsection 26(1) of the First Nations Oil and +Gas and Moneys Management Act is replaced by +the following: +Registration of lands +26 (1) A legal description of a first nation’s managed +area shall be entered, as of the first nation’s transfer date, +in the Reserve Land Register maintained under section +21 of the Indian Act or, in the case of a first nation to +which the Framework Agreement on First Nation Land +Management Act applies, the First Nation Lands Regis- +ter, within the meaning of subsection 2(2) of that Act. If +lands are subsequently added to the managed area, the +applicable register shall be amended accordingly. +129 Section 55 of the Act is replaced by the fol- +lowing: +Non-application +55 The Framework Agreement on First Nation Land +Management Act and the Indian Oil and Gas Act do not +apply in relation to oil and gas exploration or exploitation +in a first nation’s managed area as of the first nation’s +transfer date. +130 Subparagraph 62(b)(ii) of the Act is replaced +by the following: +(ii) providing for the transfer of existing contracts +to that register from the Reserve Land Register +maintained under section 21 of the Indian Act or, in +the case of a first nation to which the Framework +Agreement on First Nation Land Management Act +applies, from the First Nation Lands Register, +within the meaning of subsection 2(2) of that Act, +and +2006, c. 10 +First Nations Jurisdiction over Education +in British Columbia Act +131 The definition First Nation land in subsection +2(1) of the First Nations Jurisdiction over Educa- +tion in British Columbia Act is replaced by the +following: +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 4 Various Measures +DIVISION 3 Framework Agreement on First Nation Land Management Act +SUBDIVISION B Transitional Provisions, Consequential Amendments and Repeal +Sections 128-131 + +Page 158 +First Nation land means a reserve, as defined in sub- +section 2(1) of the Indian Act, that is situated in British +Columbia and that is set apart for a participating First +Nation, and includes First Nation land, as defined in +subsection 2(1) of the Framework Agreement on First +Nation Land Management Act. (terres autochtones) +2008, c. 32 +Tsawwassen First Nation Final Agreement +Act +132 Section 13 of the Tsawwassen First Nation +Final Agreement Act is replaced by the following: +Framework Agreement on First Nation Land +Management Act +13 The Framework Agreement on First Nation Land +Management Act, the Framework Agreement as de- +fined in subsection 2(1) of that Act and the Tsawwassen +land code — adopted under subsection 6(1) of the First +Nations Land Management Act, as it read before the +coming into force of the Framework Agreement on First +Nation Land Management Act — do not apply in respect +of the Tsawwassen First Nation, Tsawwassen Members, +Tsawwassen Lands, the Tsawwassen Government or +Tsawwassen Public Institutions. +133 Section 22 of the Act is replaced by the fol- +lowing: +Existing interests — First Nations Land Management +Act +22 If +an +interest +in +land +in +the +Former +Tsawwassen Reserve was granted or approved +under the First Nations Land Management Act, +as it read before the coming into force of the +Framework Agreement on First Nation Land +Management Act, and exists on the effective date +of the Agreement, the interest continues in effect +in accordance with its terms and conditions un- +less a replacement interest is issued in accor- +dance with Chapter 4 of the Agreement. +134 Sections 24 and 25 of the Act are replaced by +the following: +Indemnification of Tsawwassen First Nation +24 For as long as the Framework Agreement on +First Nation Land Management Act is in force, +Her Majesty in right of Canada shall, as of the ef- +fective date of the Agreement, indemnify the +Tsawwassen First Nation in respect of lands in +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 4 Various Measures +DIVISION 3 Framework Agreement on First Nation Land Management Act +SUBDIVISION B Transitional Provisions, Consequential Amendments and Repeal +Sections 131-134 + +Page 159 +the Former Tsawwassen Reserve in the same +manner and under the same conditions as would +be the case if the First Nations Land Manage- +ment Act, as it read before the coming into force +of the Framework Agreement on First Nation +Land Management Act, continued to apply to +those lands. +Documents in land registries +25 As of the effective date of the Agreement, reg- +istrations +or +records +affecting +Tsawwassen +Lands that are registered or recorded in a land +registry under the Indian Act or the First Na- +tions Land Management Act, as it read before +the coming into force of the Framework Agree- +ment on First Nation Land Management Act, +have no effect. +2013, c. 20 +Family Homes on Reserves and +Matrimonial Interests or Rights Act +135 Paragraph (b) of the definition interest or +right in subsection 2(1) of the Family Homes on +Reserves and Matrimonial Interests or Rights +Act is replaced by the following: +(b) an interest or right in or to reserve land that is +subject to any First Nation law as defined in subsec- +tion 2(1) of the Framework Agreement on First Na- +tion Land Management Act or to any land code with- +in the meaning of subsection 2(2) of that Act, to any +First Nation law enacted under a self-government +agreement to which Her Majesty in right of Canada is +a party, or to any land governance code adopted, or +any Kanesatake Mohawk law enacted, under the +Kanesatake Interim Land Base Governance Act; and +136 Subsection 12(2) of the Act is replaced by the +following: +Framework Agreement on First Nation Land +Management Act +(2) Sections 13 to 52 apply to a First Nation, within the +meaning of subsection 2(2) of the Framework Agree- +ment on First Nation Land Management Act, only if +(a) on the day on which this subsection comes into +force, the land code that the First Nation adopts under +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 4 Various Measures +DIVISION 3 Framework Agreement on First Nation Land Management Act +SUBDIVISION B Transitional Provisions, Consequential Amendments and Repeal +Sections 134-136 + +Page 160 +the Framework Agreement, as defined in subsection +2(1) of that Act, is not in force; and +(b) the First Nation laws that it enacts under section 7 +of this Act or subclause 18.3 of that Framework Agree- +ment are not in force. +137 Paragraph 31(2)(b) of the Act is replaced by +the following: +(b) in the case of a First Nation within the meaning of +subsection 2(2) of the Framework Agreement on First +Nation Land Management Act, subject to any land +code within the meaning of that subsection or First +Nation law as defined in subsection 2(1) of that Act, +to which the First Nation is subject; +138 Paragraph 36(3)(b) of the Act is replaced by +the following: +(b) in the case of a First Nation within the meaning of +subsection 2(2) of the Framework Agreement on First +Nation Land Management Act, subject to any land +code within the meaning of that subsection or First +Nation law as defined in subsection 2(1) of that Act to +which the First Nation is subject; +139 Paragraph 50(a) of the Act is replaced by the +following: +(a) a reserve of a First Nation that is subject to a land +code within the meaning of subsection 2(2) of the +Framework Agreement on First Nation Land Man- +agement Act; +140 Section 55 of the Act is replaced by the fol- +lowing: +Subsection 12(2) +55 Subsection 12(2) does not apply to a First Na- +tion that, on the day on which this section comes +into force, is a First Nation within the meaning of +subsection 2(2) of the Framework Agreement on +First Nation Land Management Act for a period +of three years after that day. +2014, c. 11 +Tla’amin Final Agreement Act +141 Sections 10 to 12 of the Tla’amin Final Agree- +ment Act are replaced by the following: +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 4 Various Measures +DIVISION 3 Framework Agreement on First Nation Land Management Act +SUBDIVISION B Transitional Provisions, Consequential Amendments and Repeal +Sections 136-141 + +Page 161 +Indian Act +10 Subject to the provisions of Chapter 17 of the Agree- +ment that deal with the continuing application of the In- +dian Act and to paragraphs 16 to 21 of Chapter 21 of the +Agreement, the Indian Act does not apply to the Tla’amin +Nation, Tla’amin Citizens, the Tla’amin Government, +Tla’amin Public Institutions, Tla’amin Lands or Other +Tla’amin Lands as of the effective date of the Agreement, +except for the purpose of determining whether an indi- +vidual is an Indian. +Framework Agreement on First Nation Land +Management Act +11 The Framework Agreement on First Nation Land +Management Act, the Framework Agreement as de- +fined in subsection 2(1) of that Act and the Sliammon +First Nation Land Code — adopted under subsection 6(1) +of the First Nations Land Management Act, as it read +before the coming into force of the Framework Agree- +ment on First Nation Land Management Act — do not +apply to the Tla’amin Nation, Tla’amin Citizens, the +Tla’amin Government, Tla’amin Public Institutions or +Tla’amin Lands. +142 Section 13 of the Act is replaced by the fol- +lowing: +Indemnification +13 For as long as the Framework Agreement on First +Nation Land Management Act is in force, Her Majesty in +right of Canada or the Tla’amin Nation, as the case may +be, must, as of the effective date of the Agreement, in- +demnify the other in respect of anything done or omitted +to be done in relation to the Former Sliammon Indian +Reserves, in the same manner and under the same condi- +tions as would be applicable if the First Nations Land +Management Act, as it read before the coming into force +of the Framework Agreement on First Nation Land +Management Act, continued to apply to the Former +Sliammon Indian Reserves. +Repeal +Repeal +143 The First Nations Land Management Act, +chapter 24 of the Statutes of Canada, 1999, is re- +pealed. +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 4 Various Measures +DIVISION 3 Framework Agreement on First Nation Land Management Act +SUBDIVISION B Transitional Provisions, Consequential Amendments and Repeal +Sections 141-143 + +Page 162 +DIVISION 4 +R.S., c. G-5 +Government Employees +Compensation Act +144 Subsection 9.2(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, His Majesty shall be subro- +gated 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 in the name of the +employee or their dependants or of His Majesty against +the third party and any sum recovered shall be paid into +the Consolidated Revenue Fund. +DIVISION 5 +Student Loans and Apprentice Loans +R.S., c. S-23 +Canada Student Loans Act +145 Section 4 of the Canada Student Loans Act +and the heading before it are replaced by the fol- +lowing: +Interest and Periods Free of +Repayment +No accrual of interest +4 (1) Beginning on April 1, 2023, no interest is payable +by a borrower on a guaranteed student loan. +Clarification +(2) For greater certainty, nothing in this section relieves +a borrower from liability for interest that accrued before +April 1, 2023 on a guaranteed student loan. +146 Subsection 5.1(1) of the Act is replaced by the +following: +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 4 Various Measures +DIVISION 4 Government Employees Compensation Act +Sections 144-146 + +Page 163 +Agreement to pay interest +5.1 (1) The Minister may enter into an agreement with a +lender respecting the payment of interest, or a province +respecting the payment of interest on provincial student +loans, by borrowers who are referred to in a regulation +that is made under paragraph 17(s.2). +147 Section 5.2 of the Act is replaced by the fol- +lowing: +Personal information +5.2 Personal information, as defined in section 3 of the +Privacy Act, that is under the control of a government +institution, as defined in that section, shall, on request, +be made available to the Minister for the purposes of a +regulation that is made under paragraph 17(s.2) or (s.3). +148 Subsection 6(1) of the Act is replaced by the +following: +Interest payable by Minister +6 (1) The Minister shall pay to a lender, in respect of +each guaranteed student loan made by that lender to a +full-time student, interest at the prescribed rate in re- +spect of any period or periods before April 1, 2023 de- +scribed in section 4, as it read from time to time before +April 1, 2023, in respect of which no interest was payable +by the borrower on the loan. +149 Subparagraph 7(f)(i) of the Act is replaced +by the following: +(i) in the case of a loan made to a full-time student, +provisions respecting payment of the principal +amount of the loan and interest on the loan by the +borrower as described in section 4, as it read at the +time that the agreement was entered into, section 5 +and any other provisions that may be prescribed, or +150 The heading before section 10 and sections 10 +and 11 of the Act are repealed. +151 (1) Subparagraph 16(2)(a)(i) of the Act is re- +placed by the following: +(i) subject to subsection (3), the aggregate of all +amounts paid by the Minister in that loan year to +lenders under sections 6, 7 and 8, paragraph 10(b), +as that paragraph read from time to time before +April 1, 2023, and sections 12 and 13, and to collec- +tion agencies, in respect of guaranteed student +loans made on the basis of certificates of eligibility +issued or caused to be issued by the appropriate au- +thorities for participating provinces that issued or +caused to be issued such certificates in that loan +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 4 Various Measures +DIVISION 5 Student Loans and Apprentice Loans +Canada Student Loans Act +Sections 146-151 + +Page 164 +year, minus all amounts collected by or on behalf of +His Majesty in that loan year in respect of those +loans, +(2) Subsection 16(3) of the Act is replaced by the +following: +Exception +(3) The amounts described in subparagraph (2)(a)(i) that +were paid or collected in respect of a loan made to a part- +time student or that were paid under paragraph 10(b), as +it read from time to time before April 1, 2023, shall be in- +cluded in the calculation set out in subparagraph (2)(a)(i) +only if the government of the province satisfies the Min- +ister that the provincial student loan plan includes provi- +sions having substantially the same effect as the provi- +sions of this Act relating to loans to part-time students or +to the granting of special interest-free periods to borrow- +ers respectively. +(3) Paragraph (a) of the definition net costs in +subsection 16(6) of the Act is replaced by the fol- +lowing: +(a) the estimated aggregate of all amounts paid by the +Minister in that loan year to lenders under sections 6, +7 and 8, paragraph 10(b), as that paragraph read from +time to time before April 1, 2023, and sections 12 and +13, and to collection agencies, in respect of guaranteed +student loans made on the basis of certificates of eligi- +bility issued or caused to be issued in any loan year by +the appropriate authority for that province +(4) Paragraph (a) of the definition total program +net costs in subsection 16(6) of the Act is replaced +by the following: +(a) the aggregate of all amounts paid by the Minister +in that loan year to lenders under sections 6, 7 and 8, +paragraph 10(b), as that paragraph read from time to +time before April 1, 2023, and sections 12 and 13, and +to collection agencies, in respect of guaranteed student +loans made on the basis of certificates of eligibility is- +sued or caused to be issued in any loan year by the ap- +propriate authorities for participating provinces +(5) Subsection 16(7) of the Act is replaced by the +following: +Exception +(7) The amounts described in paragraphs (a) and (b) of +the definition net costs in subsection (6) that were paid +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 4 Various Measures +DIVISION 5 Student Loans and Apprentice Loans +Canada Student Loans Act +Section +151 + +Page 165 +or received in respect of a loan made to a part-time stu- +dent or that were paid under paragraph 10(b), as it read +from time to time before April 1, 2023, shall be included +in the calculation described in that definition only if the +government of the province satisfies the Minister that the +provincial student loan plan includes provisions having +substantially the same effect as the provisions of this Act +relating to loans to part-time students or to the granting +of special interest-free periods to borrowers respectively. +152 (1) Paragraph 17(m) of the Act is repealed. +(2) Paragraph 17(s.1) of the Act is repealed. +153 (1) Paragraph 18.1(1)(a) of the Act is re- +pealed. +(2) Subsection 18.1(2) of the Act is replaced by the +following: +Outstanding student loans +(2) If, before the day on which this section comes into +force, a person knowingly made any false statement or +misrepresentation, including by omission, in an applica- +tion or other document or knowingly provided any false +or misleading information, including by omission, in re- +spect of a guaranteed student loan that is outstanding on +that day, the Minister may take any measure set out in +paragraphs (1)(b) to (f). +154 Section 22.1 of the Act is replaced by the fol- +lowing: +Interest-free period — loan made on or after August 1, +1993 +22.1 (1) If a borrower ceased to be a full-time student at +any time during the six months before the day on which +section 323 of the Budget Implementation Act, 2019, +No. 1 comes into force, no interest is payable by them on +a guaranteed student loan referred to in subsection 4(2), +as it read on November 1, 2019, for the period that begins +on that day and ends on the last day of the sixth month +after the month in which the borrower ceased to be a full- +time student. +Interest-free period — loan consolidated after August +1, 1993 +(2) If a borrower referred to in subsection 4(4), as it read +on November 1, 2019, ceased to be a full-time student at +any time during the six months before the day on which +section 323 of the Budget Implementation Act, 2019, +No. 1 comes into force, no interest is payable by them on +a guaranteed student loan referred to in that subsection +for the period that begins on that day and ends on the +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 4 Various Measures +DIVISION 5 Student Loans and Apprentice Loans +Canada Student Loans Act +Sections 151-154 + +Page 166 +last day of the sixth month after the month in which the +borrower ceased to be a full-time student. +1994, c. 28 +Canada Student Financial +Assistance Act +155 (1) Subparagraphs 5(a)(i) and (ii) of the +Canada Student Financial Assistance Act are re- +placed by the following: +(i) amounts equivalent to interest on a student loan +made by the lender in respect of the period before +April 1, 2023 for which no interest is payable by the +borrower under subsection 7(1), as it read from +time to time before April 1, 2023, +(ii) amounts equivalent to interest on a student +loan made by the lender in respect of any period for +which no interest is payable by the borrower under +regulations made under paragraph 15(1)(n), as that +paragraph and those regulations read from time to +time before April 1, 2023, +(2) Paragraph 5(d) of the Act is repealed. +156 Section 7 of the Act and the heading before it +are replaced by the following: +Interest and Periods of Deferral +No accrual of interest +7 (1) Beginning on April 1, 2023, no interest is payable +by a borrower on a student loan. +Clarification +(1.1) For greater certainty, nothing in this section re- +lieves a borrower from liability for interest that accrued +before April 1, 2023 on a student loan. +No fees +(2) No fee of any kind may be charged to a borrower on a +student loan in respect of any period of studies during +which the borrower is a full-time or part-time student or +in respect of any subsequent period ending on +(a) in the case of a student loan that is made to a full- +time student, the last day of the sixth month after the +month in which the borrower ceases to be a full-time +student; and +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 4 Various Measures +DIVISION 5 Student Loans and Apprentice Loans +Canada Student Loans Act +Sections 154-156 + +Page 167 +(b) in the case of a student loan that is made to a part- +time student, the last day of the sixth month after the +month in which the borrower ceases to be a student, +whether a part-time or full-time student. +157 Subsection 9(1) of the Act is replaced by the +following: +Agreement to pay interest +9 (1) The Minister may enter into an agreement with a +lender respecting the payment of interest, or a province +respecting the payment of interest on provincial student +loans, by borrowers who are referred to in a regulation +that is made under paragraph 15(1)(k.2). +158 Section 9.1 of the Act is replaced by the fol- +lowing: +Personal information +9.1 Personal information, as defined in section 3 of the +Privacy Act, that is under the control of a government +institution, as defined in that section, shall, on request, +be made available to the Minister for the purposes of a +regulation that is made under paragraph 15(1)(k.1), (k.2) +or (k.3). +159 (1) Paragraph 14(7)(a) of the Act is replaced +by the following: +(a) amounts that are determined as a result of the ap- +plication of subparagraph 5(a)(viii), section 7, as that +section read from time to time before April 1, 2023, or +section 10 or 11; +(2) Paragraph 14(7)(b) of the Act is replaced by +the following: +(b) amounts in relation to programs established by +regulations made under paragraph 15(1)(l), (m) or (p); +and +(3) Subsection 14(7) of the Act is amended by +striking out “and” at the end of paragraph (c) +and by repealing paragraph (d). +160 (1) Paragraphs 15(1)(i) to (k) of the Act are +replaced by the following: +(i) prescribing the circumstances under which a loan +or a certificate of eligibility may be denied to a stu- +dent; +(j) prescribing student loans to which section 8, 10 or +11 or subsection 12(4) applies; +(2) Paragraph 15(1)(n) of the Act is repealed. +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 4 Various Measures +DIVISION 5 Student Loans and Apprentice Loans +Canada Student Financial Assistance Act +Sections 156-160 + +Page 168 +161 (1) Paragraph 17.1(1)(b) of the Act is re- +pealed. +(2) Paragraph 17.1(1)(f) of the Act is repealed. +162 Section 20.1 of the Act is replaced by the fol- +lowing: +Interest-free period — loan to full-time student +20.1 (1) If a borrower ceased to be a full-time student at +any time during the six months before the day on which +section 325 of the Budget Implementation Act, 2019, +No. 1 comes into force, no interest is payable by them on +a student loan referred to in paragraph 7(1)(a), as it read +on November 1, 2019, for the period that begins on that +day and ends on the last day of the sixth month after the +month in which the borrower ceased to be a full-time stu- +dent. +Interest-free period — loan to part-time student +(2) If a borrower ceased to be a student, whether a part- +time or full-time student, at any time during the six +months before the day on which section 325 of the Bud- +get Implementation Act, 2019, No. 1 comes into force, no +interest is payable by them on a student loan referred to +in paragraph 7(1)(b), as it read on November 1, 2019, for +the period that begins on that day and ends on the last +day of the sixth month after the month in which the bor- +rower ceased to be a student, whether a part-time or full- +time student. +2014, c. 20, s. 483 +Apprentice Loans Act +163 The heading before section 8 of the Appren- +tice Loans Act is replaced by the following: +Interest and Periods of Deferral +164 Subsection 8(1) of the Act is replaced by the +following: +No accrual of interest +8 (1) Beginning on April 1, 2023, no interest is payable +by a borrower on an apprentice loan. +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 4 Various Measures +DIVISION 5 Student Loans and Apprentice Loans +Canada Student Financial Assistance Act +Sections 161-164 + +Page 169 +Clarification +(1.1) For greater certainty, nothing in this section re- +lieves a borrower from liability for interest that accrued +before April 1, 2023 on an apprentice loan. +165 The Act is amended by adding the following +after section 8.2: +Payment of principal and interest +8.3 During the period that begins on April 1, 2021 and +ends on March 31, 2023, section 4 of the Apprentice +Loans Regulations is to be read as follows: +4 (1) The borrower must begin to repay the principal +amount of any apprentice loan made to them, and inter- +est, on the last day of the month in which interest started +accruing or would have started accruing but for the inter- +est suspension period. +(2) For the purposes of subsection (1), interest suspen- +sion period means the period that begins on April 1, +2021 and ends on March 31, 2023 during which no inter- +est is payable by a borrower on an apprentice loan. +166 (1) Paragraphs 12(1)(f) and (g) of the Act are +replaced by the following: +(g) prescribing the circumstances under which an ap- +prentice loan may be denied to an eligible apprentice; +(2) Paragraph 12(1)(k) of the Act is repealed. +Transitional Provisions +Definitions +167 (1) The following definitions apply in this +section. +apprentice loan has the same meaning as in sub- +section 1(1) of the Apprentice Loans Regula- +tions. (prêt aux apprentis) +borrower has the same meaning as in subsection +1(1) of the Apprentice Loans Regulations. (em- +prunteur) +transition period means the period beginning on +April 1, 2023 and ending on the day on which a +regulation amending or repealing section 4 of the +Apprentice Loans Regulations comes into force. +(période de transition) +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 4 Various Measures +DIVISION 5 Student Loans and Apprentice Loans +Apprentice Loans Act +Sections 164-167 + +Page 170 +Repayment of principal and interest +(2) During the transition period, a borrower +must begin to repay the principal amount of an +apprentice loan made to them, and any interest, +on the last day of the month in which interest +would have started accruing under the Appren- +tice Loans Regulations but for subsection 8(1) of +the Apprentice Loans Act, as enacted by section +164. +Coming into Force +April 1, 2023 +168 (1) Subject to subsections (2) and (3), this Di- +vision comes into force or is deemed to have +come into force on April 1, 2023. +Order in council +(2) Sections 146, 147, 150 to 152, 157 and 158, sub- +sections 159(2) and (3) and sections 160 and 166 +come into force on a day to be fixed by order of +the Governor in Council, but that day must be af- +ter March 31, 2023. +April 1, 2021 +(3) Section 165 is deemed to have come into force +on April 1, 2021. +Published under authority of the Speaker of the House of Commons +2021-2022 +Chapter 19: Fall Economic Statement Implementation Act, 2022 +PART 4 Various Measures +DIVISION 5 Student Loans and Apprentice Loans +Transitional Provisions +Sections 167-168 + +Page 171 + +Page 172 +Available on the House of Commons website +Disponible sur le site Web de la Chambre des com +