archived - Annex 5: Notices of Ways and Means Motions

Table of Contents - Previous

Notice of Ways and Means Motion to Amend the Income Tax Act and Income Tax Regulations

That it is expedient to amend the Income Tax Act and Income Tax Regulations to provide among other things:

Benefits Entitlement – Shared Custody

(1) That, for amounts in respect of the Goods and Services Tax Credit that are deemed to be paid during months after June 2011,

(a) section 122.5 of the Act be amended to add the following after subsection (3):

(3.01) Notwithstanding subsection (3), if an eligible individual is a shared custody parent (within the meaning assigned by section 122.6, but with the words "qualified dependant" in that section having the meaning assigned by subsection (1)) in respect of one or more qualified dependants at the beginning of a month, the amount deemed by subsection (3) to have been paid during a specified month is equal to the amount determined by the formula

( A + B ) / 2

where

A is the amount determined by the formula in subsection (3), calculated without reference to this subsection, and

B is the amount determined by the formula in subsection (3), calculated without reference to this subsection and subparagraph (b)(ii) of the definition "eligible individual" in section 122.6.

and

(b) paragraph 122.5(6)(b) of the Act be replaced by the following:

(b) in the absence of an agreement referred to in paragraph (a), the person is deemed to be, in relation to that month, a qualified dependant of the individuals, if any, who are, at the beginning of that month, eligible individuals (within the meaning assigned by section 122.6, but with the words "qualified dependant" in that section having the meaning assigned by subsection (1)) in respect of that person; and.

(2) That, for overpayments in respect of the Canada Child Tax Benefit that are deemed to arise after June 2011,

(a) paragraph (b) of the definition "eligible individual" in section 122.6 of the Act be replaced by the following:

(b) is a parent of the qualified dependant who

(i) is the parent who primarily fulfils the responsibility for the care and upbringing of the qualified dependant and who is not a shared custody parent in respect of the qualified dependant, or

(ii) is a shared custody parent in respect of the qualified dependant;

(b) section 122.6 of the Act be amended by adding the following definition in alphabetical order:

"shared custody parent" in respect of a qualified dependant at a particular time means, where the presumption referred to in paragraph (f) of the definition "eligible individual" does not apply in respect of the qualified dependant, an individual who is one of the two parents of the qualified dependant who

(a) are not at that time cohabiting spouses or common-law partners of each other,

(b) reside with the qualified dependant on an equal or near equal basis, and

(c) primarily fulfil the responsibility for the care and upbringing of the qualified dependant when residing with the qualified dependant, as determined in consideration of prescribed factors,

and

(c) section 122.61 of the Act be amended by adding the following after subsection (1):

(1.1) Notwithstanding subsection (1), if an eligible individual is a shared custody parent in respect of one or more qualified dependants at the beginning of a month, the overpayment deemed by subsection (1) to have arisen during the month is equal to the amount determined by the formula

( A + B ) / 2

where

A is the amount determined by the formula in subsection (1), calculated without reference to this subsection, and

B is the amount determined by the formula in subsection (1), calculated without reference to this subsection and subparagraph (b)(ii) of the definition "eligible individual" in section 122.6.

Universal Child Care Benefit for Single Parents

(3) That, for the 2010 and subsequent taxation years, subsection 56(6) of the Act be replaced with the following:

(6) There shall be included in computing the income of a taxpayer for a taxation year the total of all amounts each of which is a benefit paid under section 4 of the Universal Child Care Benefit Act that is received in the taxation year by

(a) the taxpayer, if

(i) the taxpayer does not have a cohabiting spouse or common-law partner (within the meaning assigned by section 122.6) at the end of the year and the taxpayer does not make a designation under subsection (6.1) for the taxation year, or

(ii) the income for the taxation year of the person who is the taxpayer's cohabiting spouse or common-law partner at the end of the taxation year is equal to or greater than the income of the taxpayer for the taxation year;

(b) the taxpayer's cohabiting spouse or common-law partner at the end of the taxation year, if the income of the cohabiting spouse or common-law partner for the taxation year is greater than the taxpayer's income for the taxation year; or

(c) an individual who makes a designation under subsection (6.1) in respect of the taxpayer for the taxation year.

Designation

(6.1) If, at the end of a taxation year, a taxpayer does not have a cohabiting spouse or common-law partner (within the meaning assigned by section 122.6), the taxpayer may designate, in the taxpayer's return of income for the taxation year, the total of all amounts, each of which is a benefit received in the taxation year by the taxpayer under section 4 of the Universal Child Care Benefit Act, to be income of

(a) if the taxpayer deducts an amount for the taxation year under subsection 118(1) because of paragraph (b) of the description of B in that subsection in respect of an individual, the individual; or

(b) in any other case, a child who is a qualified dependant (as defined in section 2 of the Universal Child Care Benefit Act) of the taxpayer.

Medical Expense Tax Credit – Purely Cosmetic Procedures

(4) That, for expenses incurred after March 4, 2010, the description of medical expenses in subsection 118.2(2) of the Act not include amounts paid for medical or dental services, or any related expenses, provided for purely cosmetic purposes, unless the services are necessary for medical or reconstructive purposes.

Rollover of RRSP Proceeds to an RDSP

(5) That, for deaths that occur after March 3, 2010, the special deduction in paragraph 60(l) of the Act, in respect of contributions made to an RRSP or RRIF of an individual out of proceeds received by the individual from an RRSP, RRIF or RPP (each of which is referred to in this paragraph and paragraphs (6) to (8) as a "plan") as a consequence of the death of the annuitant or member (the "deceased") of the plan, be extended to contributions made to an RDSP of an individual, if the following conditions are met:

(a) the individual would have been entitled to a deduction under paragraph 60(l) of the Act had the contribution been made to an RRSP of the individual;

(b) the individual was a child or grandchild of the deceased and was, at the time of the deceased's death, financially dependent on the deceased because of mental or physical infirmity;

(c) the RDSP contribution complies with the conditions in paragraphs 146.4(4)(f) to (h) of the Act;

(d) the RDSP contribution is not made before July 2011;

(e) the holder of the RDSP and the individual designate the RDSP contribution in prescribed form at the time the contribution is made; and

(f) the amount of the RDSP contribution does not exceed the amount of the proceeds that were included in computing the individual's income.

(6) That, for deaths that occur after 2007 and before 2011, the Minister of National Revenue have the authority to apply the special deduction in paragraph 60(l) of the Act, as proposed to be amended by paragraph (5) of this Notice, with such modifications as the circumstances require, to allow a deduction in computing an individual's income, if the following conditions are met:

(a) the individual is the spouse or common-law partner of the deceased or is a person described in subparagraph (5)(b);

(b) the conditions in subparagraphs (5)(c) to (f) are satisfied; and

(c) the contribution is made before 2012 to an RDSP of a person described in subparagraph (5)(b).

(7) For the purposes of paragraph (6),

(a) except to the extent that subparagraph (b) is applicable, the deduction will apply for the taxation year in which the individual received the proceeds; and

(b) to the extent that the individual previously deducted an amount under paragraph 60(l) of the Act in respect of the proceeds from the deceased's plan, and made the RDSP contribution from amounts withdrawn from an RRSP or RRIF of the individual, the deduction will apply for the same taxation year in which the amounts are withdrawn.

(8) That, for deaths that occur after 2007 and before 2011, the Minister of National Revenue have the authority to allow a deduction in computing a deceased taxpayer's income for the year in which the taxpayer died, if the following conditions are met:

(a) an amount is included in the income of the taxpayer by reason of subsection 146(8.8) or 146.3(6) of the Act;

(b) an amount is contributed before 2012 to the RDSP of a child or grandchild who was, at the time of the deceased's death, financially dependent on the deceased because of mental or physical infirmity;

(c) the contributor of the amount is a beneficiary of the deceased's estate or is a person who received directly an amount of the deceased's RRSP or RRIF proceeds on the death of the annuitant;

(d) the total of all amounts so contributed does not exceed the amount described in subparagraph (a), minus any amount claimed as an RRSP or RRIF post-death loss under 146(8.92) or 146.3(6.3) of the Act, as the case may be; and

(e) the conditions in subparagraphs (5)(c) to (e) are satisfied.

(9) That, for deaths that occur after 2007 and before 2011, the Minister of National Revenue have the authority to allow a deduction in computing an individual's income for a year, if the following conditions are met:

(a) a lump sum amount was received by the individual from a RPP as a consequence of the death of an individual (the "deceased") and was included in the income of the individual in the year by reason of paragraph 56(1)(a) of the Act;

(b) an amount is contributed before 2012 to the RDSP of a child or grandchild of the deceased who was, at the time of the deceased's death, financially dependent on the deceased because of mental or physical infirmity;

(c) the individual is a beneficiary of the deceased's estate or is a person who received an amount directly from the RPP;

(d) the total of all amounts so contributed does not exceed the amount described in subparagraph (a); and

(e) the conditions in subparagraphs (5)(c) to (e) are satisfied.

(10) That, where paragraph (5), (6), (8) or (9) applies in respect of an RDSP contribution, no amount of the contribution be added to the "non-taxable portion of a disability assistance payment" pursuant to subsection 146.4(7) of the Act.

Provincial Payments into RESPs and RDSPs

(11) That payments made into a registered education savings plan, as defined in section 146.1 of the Act, or into a registered disability savings plan, as defined in section 146.4 of the Act, under a program administered by a province, or under a program funded, directly or indirectly, by a province but administered by a third party, be treated for the purposes of the Act in the same manner as federal grants and bonds paid into these plans.

(12) That, in respect of provincial programs administered by a province, paragraph (11) apply for the 2007 and subsequent taxation years.

(13) That, in respect of programs that are funded, directly or indirectly, by a province but administered by a third party, paragraph (11) apply for the 2009 and subsequent taxation years.

(14) That, for the 2009 and subsequent taxation years, subparagraphs 241(4)(d)(vii.1) and 241(4)(d)(vii.5) of the Act be amended to allow taxpayer information to be disclosed for the purpose of administering or enforcing programs described in paragraph (11).

Scholarship Exemption and Education Tax Credit

(15) That, for the 2010 and subsequent taxation years, the portion of the scholarship exemption in paragraph 56(3)(a) of the Act that applies in respect of a scholarship, fellowship or bursary received in connection with the taxpayer's enrolment in an educational program be limited to an amount equal to the sum of the fees paid to a designated educational institution, as defined in subsection 118.6(1) of the Act, in respect of the taxpayer's tuition and costs incurred for program-related materials, if the taxpayer may deduct an amount by reason of paragraph (b) of the description of B in subsection 118.6(2) of the Act in respect of that educational program.

(16) That, for the 2010 and subsequent taxation years, a scholarship, fellowship or bursary (in this paragraph referred to as an "award") is not, for the purpose of the scholarship exemption in subsection 56(3) of the Act, considered to be received in connection with a taxpayer's enrolment in an educational program except to the extent that it is reasonable to conclude that the award is intended to support the taxpayer's enrolment in the program, having regard to all the circumstances, including

(a) any terms or conditions that apply in respect of the award,

(b) the duration of the program, and

(c) the period for which support is intended to be provided by the award.

(17) That, for the 2010 and subsequent taxation years, a program at a post-secondary school level referred to in the definition "qualifying education program" in subsection 118.6(1) of the Act does not include a program that consists primarily of research, unless the program leads to a diploma from a college or a Collège d'enseignement général et professionnel (CEGEP), or a bachelor, masters or doctoral degree (or an equivalent degree).

Charities: Disbursement Quota Reform

(18) That, for taxation years of registered charities that end on or after March 4, 2010,

(a) the definitions "capital gains pool", "enduring property" and "specified gift" in subsection 149.1(1) of the Act be repealed;

(b) the formula in the definition "disbursement quota" in subsection 149.1(1) of the Act be replaced by the following:

A x B x 0.035 / 365

where

A is the number of days in the taxation year, and

B is

(a) 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 immediately preceding the taxation year that was not used directly in charitable activities or administration, if that amount is greater than

(i) if the registered charity is a charitable organization, $100,000, and

(ii) in any other case, $25,000, and

(b) in any other case, nil;

(c) the following definition be added in alphabetical order in subsection 149.1(1) of the Act:

"designated gift" means that portion of a gift, made in a taxation year by a registered charity, that is designated as a designated gift in its information return for the year.

(19) That, for taxation years of registered charities that end on or after March 4, 2010, the word "specified" in subsection 149.1(1.1) of the Act be replaced with the word "designated".

(20) That, for taxation years of registered charities that end on or after March 4, 2010, subsection 149.1(4.1) of the Act be amended

(a) by replacing paragraph 149.1(4.1)(a) with the following:

(a) of a registered charity, if it has entered into a transaction (including a gift to another registered charity) and it may reasonably be considered that a purpose of the transaction was to avoid or delay unduly the expenditure of amounts on charitable activities;

and

(b) by adding the following after paragraph 149.1(4.1)(c):

(d) of a registered charity, if it has in a taxation year received a gift (other than a designated gift) from another registered charity with which it does not deal at arm's length, and if it has not expended, before the end of the next taxation year, in addition to its disbursement quotas for those taxation years, an amount at least equal to the total amount of the gift, on charitable activities carried on by it or by way of gifts made to qualified donees with which it deals at arm's length.

(21) That, for taxation years of registered charities that end on or after March 4, 2010, subsection 149.1(8) of the Act be replaced by the following:

(8) A registered charity may, with the approval in writing of the Minister, accumulate property for a particular purpose, on terms and conditions, and over such period of time, as the Minister specifies in the approval, and any property accumulated after receipt of and in accordance with that approval, including any income earned in respect of the accumulated property, is not to be included in the amount described in B in the formula in the definition "disbursement quota" in subsection (1) for any taxation year that the Minister specifies.

(22) That, for taxation years of registered charities that end on or after March 4, 2010, subsection 188.1(11) be replaced by the following:

(11) If, in a taxation year, a registered charity has entered into a transaction (including a gift to another registered charity) and it may reasonably be considered that a purpose of the transaction was to avoid or delay unduly the expenditure of amounts on charitable activities, the registered charity is liable to a penalty under this Act for its taxation year equal to 110% of the amount of expenditure avoided or delayed, and in the case of a gift to another registered charity, both charities are jointly and severally, or solidarily, liable to the penalty.

(12) If a registered charity 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 if it has not expended, before the end of the next taxation year, in addition to its disbursement quotas for those taxation years, an amount at least equal the amount of the gift, on charitable activities carried on by it or by way of gifts made to qualified donees with which it deals at arm's length, the registered charity is liable to a penalty under this Act for that subsequent taxation year equal to 110% of the amount of by which the fair market value of the property exceeds the total of such amounts expended.

Employee Stock Options

Stock Option Cash-Outs

(23) That, for transactions occurring after 4:00 p.m. Eastern Standard Time on March 4, 2010, paragraphs 110(1)(d) and (d.1) of the Act require, as a condition of eligibility for the deductions provided under those paragraphs (referred to in this paragraph as "the stock option deduction"), that the securities described in an agreement to sell or issue securities referred to in subsection 7(1) of the Act be acquired by the employee, unless

(a) the employer elects in prescribed form in respect of all stock options issued or to be issued after 4:00 p.m. Eastern Standard Time on March 4, 2010 under the agreement, and files such election with the Minister of National Revenue, that neither the employer, nor any person who does not deal at arm's length with the employer, will deduct any amount in respect of a payment, to or for the benefit of the employee, for the employee's disposition of rights under the agreement;

(b) the employer provides the employee with evidence in writing of such election; and

(c) the employee files such evidence with the Minister of National Revenue with his or her return of income for the year in which the stock option deduction is claimed.

(24) That, for dispositions of rights occurring after 4:00 p.m. Eastern Standard Time on March 4, 2010, it be clarified that the rules in subsection 7(1) of the Act apply in circumstances in which an employee (or a person who does not deal at arm's length with the employee) disposes of rights under an agreement to sell or issue securities to a person with whom the employee does not deal at arm's length.

Tax Deferral Election and Remittance Requirement

(25) That, in respect of rights under an agreement to sell or issue securities exercised after 4:00 p.m. Eastern Standard Time on March 4, 2010, subsections 7(8) to (16) of the Act be repealed.

(26) That, in respect of securities acquired by employees after 2010, it be clarified that under section 153 of the Act an amount must be remitted to the Receiver General by the employer in respect of an employment benefit that is taxable under section 7 of the Act (other than an amount to which subsection 7(1.1) of the Act applies), to the same extent as if the amount of the benefit had been paid to the employee in money as a bonus, and, for these purposes, if the requirements of paragraph 110(1)(d) of the Act are met in respect of the employment benefit at the time that the securities are acquired, the amount of the benefit be reduced by one-half.

(27) That, in respect of employment benefits realized from acquisitions of securities after 2010, section 153 of the Act provide that the fact that the benefit arose from the acquisition of securities not be considered a basis on which the Minister of National Revenue may reduce the amount required to be remitted under section 153 of the Act.

(28) That paragraphs (26) and (27) not apply in respect of rights under an agreement to sell or issue securities granted before 2011 if the agreement was entered into in writing before 4:00 pm Eastern Standard Time on March 4, 2010 and included, at that time, a written condition that restricts the employee from disposing of the securities acquired under the agreement for a period of time after exercise.

Special Relief for Tax Deferral Elections

(29) That, where a taxpayer disposes of securities before 2015 and the securities gave rise to an employment benefit in respect of which an election under subsection 7(10) of the Act was made, the taxpayer be permitted to elect, in prescribed form, the following tax treatment for the taxation year in which the securities are disposed of:

(a) that paragraph 110(1)(d) and 110(1)(d.1) of the Act be read without reference to the phrase "1/2 of" in calculating the amount deductible by the taxpayer in respect of the employment benefit arising under subsection 7(1);

(b) that one-half of the lesser of

i. the amount deductible under subparagraph (a) and

ii. the taxpayer's capital loss from the disposition of the securities

be included as a taxable capital gain in the taxpayer's income for the taxation year in which the deduction in subparagraph (a) is claimed;

(c) that a special tax, equal to the taxpayer's proceeds of disposition of the securities (or 2/3 of the taxpayer's proceeds of disposition, if the taxpayer resides in Québec), be payable under the Act for the taxation year in which the deduction under subparagraph (a) is claimed; and

(d) that the taxable capital gain under subparagraph (b) be disregarded for the purposes of the definition "adjusted income" in subsections 122.5(1), 122.51(1) and 180.2(1), section 122.6, and the definition "adjusted net income" in subsection 122.7(1) of the Act.

(30) That, an election described in paragraph (29) in respect of a taxation year that is outside the normal reassessment period (within the meaning of subsection 152(3.1) of the Act) be considered an application for determination by the Minister of National Revenue under subsection 152(4.2).

(31) That, the deadline for a taxpayer to file the election described in paragraph (29) shall be:

(a) if the taxpayer disposed of the securities before 2010, the taxpayer's filing-due date for 2010, and

(b) if the taxpayer disposes of the securities after 2009, the taxpayer's filing-due date for the year of the disposition.

U.S. Social Security Benefits

(32) That, in computing taxable income for a taxation year that ends after 2009, a taxpayer be allowed to deduct 35 per cent of the total of all benefits received by the taxpayer in the taxation year to which paragraph 5 of Article XVIII of the Convention between Canada and the United States of America with respect to Taxes on Income and on Capital as set out in Schedule I to the Canada-United States Tax Convention Act, 1984, of the S.C. 1984, c. 20, applies, if

(a) the taxpayer has, continuously during a period that begins before 1996 and that ends in the taxation year, been resident in Canada and received such benefits in each taxation year ending in that period, or

(b) the benefits are payable to the taxpayer in respect of a deceased individual, and

(i) the deceased individual was, immediately before the deceased individual's death, the taxpayer's spouse or common-law partner and was, in the taxation year in which the deceased individual died, a taxpayer described in paragraph (a), and

(ii) the taxpayer has, continuously during a period that begins at the time of the death of the deceased individual and that ends in the taxation year, been resident in Canada and received such benefits in each taxation year ending in that period.

Mineral Exploration Tax Credit

(33) That, for expenses renounced under a flow-through share agreement made after March 2010,

(a) paragraph (a) of the definition "flow-through mining expenditure" in subsection 127(9) of the Act be replaced by the following:

(a) that is a Canadian exploration expense incurred by a corporation after March 2010 and before 2012 (including, for greater certainty, an expense that is deemed by subsection 66(12.66) to be incurred before 2012) in conducting mining exploration activity from or above the surface of the earth for the purpose of determining the existence, location, extent or quality of a mineral resource described in paragraph (a) or (d) of the definition "mineral resource" in subsection 248(1),

and

(b) paragraphs (c) and (d) of the definition "flow-through mining expenditure" in subsection 127(9) of the Act be replaced by the following:

(c) an amount in respect of which is renounced in accordance with subsection 66(12.6) by the corporation to the taxpayer (or a partnership of which the taxpayer is a member) under an agreement described in that subsection and made after March 2010 and before April 2011, and

(d) that is not an expense that was renounced under subsection 66(12.6) to the corporation (or a partnership of which the corporation is a member), unless that renunciation was under an agreement described in that subsection and made after March 2010 and before April 2011.

Canadian Renewable and Conservation Expenses – Principal-
Business Corporations

(34) That, in respect of taxation years ending after 2004, the definition "principal-business corporation" in subsection 66(15) of the Act be amended to include a corporation, the principal business of which is producing fuel or generating or distributing energy, using property described in Class 43.1 or 43.2 of Schedule II to the Income Tax Regulations.

SIFT Conversions and Loss Trading

(35) That subsection 256(7) of the Act be modified to add a rule similar to that in existing paragraph 256(7)(c) such that where two or more persons dispose of interests in a SIFT trust (as defined in the Act, determined without reference to subsection 122.1(2) of the Act), SIFT partnership (as defined in the Act, determined without reference to subsection 197(8) of the Act) or real estate investment trust in exchange for shares of the capital stock of a corporation, control of that corporation and of each corporation controlled by it immediately before the exchange is deemed to have been acquired at the time of the exchange by a person or group of persons.

(36) That subsection 256(7) of the Act be modified such that where a SIFT wind-up corporation is the only beneficiary of a trust and the trust controls another corporation, on a distribution of the shares of the other corporation that is part of a SIFT trust wind-up event (as defined in the Act), the SIFT wind-up corporation will be deemed not to acquire control of the other corporation because of that distribution.

(37) That the amendments referred to in paragraphs (35) and (36) apply to transactions undertaken after 4:00 p.m. Eastern Standard Time March 4, 2010, other than transactions that the parties are obligated to complete pursuant to the terms of an agreement in writing between the parties entered into before that time. A party shall be considered not to be obligated to complete a transaction if the party may be excused from completing the transaction as a result of amendments to the Income Tax Act. If the relevant parties so elect in writing, the amendments referred to in paragraphs (35) and (36) will apply to transactions that were completed or agreed to in writing before 4:00 p.m. Eastern Standard Time March 4, 2010.

Section 116 and Taxable Canadian Property

(38) That, in determining after March 4, 2010 whether a property is taxable Canadian property of a taxpayer, paragraphs (d) to (l) of the definition "taxable Canadian property" in subsection 248(1) of the Act be replaced by the following:

(d) a share of the capital stock of a corporation (other than a mutual fund corporation) that is not listed on a designated stock exchange, an interest in a partnership or an interest in a trust (other than a unit of a mutual fund trust or an income interest in a trust resident in Canada), if, at any particular time during the 60-month period that ends at that time, more than 50% of the fair market value of the share or interest, as the case may be, was derived directly or indirectly from one or any combination of

(i) real or immovable property situated in Canada,

(ii) Canadian resource properties,

(iii) timber resource properties, and

(iv) options in respect of, or interests in, or for civil law rights in, property described in any of subparagraphs (i) to (iii), whether or not the property exists,

(e) a share of the capital stock of a corporation that is listed on a designated stock exchange, a share of the capital stock of a mutual fund corporation or a unit of a mutual fund trust, if, at any particular time during the 60-month period that ends at that time,

(i) 25% or more of the issued shares of any class of the capital stock of the corporation, or 25% or more of the issued units of the trust, as the case may be, were owned by or belonged to one or any combination of

(A) the taxpayer, and

(B) persons with whom the taxpayer did not deal at arm's length, and

(ii) more than 50% of the fair market value of the share or unit, as the case may be, was derived directly or indirectly from one or any combination of properties described under subparagraphs (d)(i) to (iv), or

(f) an option in respect of, or an interest in, or for civil law a right in, a property described in any of paragraphs (a) to (e), whether or not the property exists,

(39) That, in determining after March 4, 2010 whether a property is taxable Canadian property of a taxpayer,

(a) paragraph 85(1)(i) of the Act be replaced by the following:

(i) where the property so disposed of is taxable Canadian property of the taxpayer, all of the shares of the capital stock of the Canadian corporation received by the taxpayer as consideration for the property are deemed, at any time that is within 60 months after the disposition, to be taxable Canadian property of the taxpayer.

(b) paragraphs 44.1(2)(c), 51(1)(f), 85.1(1)(a), subsection 85.1(5), paragraph 85.1(8)(b), subsections 87(4) and (5), paragraphs 97(2)(c), 107(2)(d.1), (3.1)(d) and 107.4(3)(f) and subsection 248(25.1) of the Act be amended in a manner similar to the amendment to paragraph 85(1)(i) of the Act.

(40) That, in determining after March 4, 2010 whether a property is taxable Canadian property of a taxpayer, section 128.1 of the Act be amended by adding the following after subsection (6):

(6.1) For the purposes of paragraph (6)(a), a property is deemed to be taxable Canadian property of the individual throughout the period that began at the emigration time and that ends at the particular time if

(a) the emigration time is before March 5, 2010; and

(b) the property was taxable Canadian property of the individual on March 4, 2010.

Refunds under Regulation 105 and Section 116

(41) That, in respect of an application made by a taxpayer after March 4, 2010 for a refund of an overpayment in respect of a taxation year of the taxpayer, subsection 164(1.5) of the Act be amended to permit the Minister of National Revenue to refund the overpayment, to the extent that it relates to an assessment of another person under subsection 227(10) or (10.1) of the Act, if the taxpayer's return of income required to be filed under Part I of the Act for the taxation year is filed on or before the day that is two years after the date of the assessment and if the assessment relates to,

(a) in the case of an amount assessed under subsection 227(10) of the Act, a payment to the taxpayer of a fee, commission or other amount in respect of services rendered in Canada; and

(b) in the case of an amount assessed under subsection 227(10.1) of the Act, an amount payable under subsection 116(5) or (5.3) of the Act in respect of the disposition of taxable Canadian property by the taxpayer.

Foreign Tax Credit Generators

(42) That, for income or profits tax paid for taxation years of a taxpayer that end after March 4, 2010, section 126 of the Act be amended by adding the following after subsection (4.1):

(4.11) If a taxpayer is a member of a partnership, any income or profits tax paid to the government of a particular country other than Canada — in respect of the income of the partnership for a period during which the taxpayer's share of the income of the partnership under the income tax laws of any country other than Canada under whose laws the income of the partnership is subject to income taxation, is less than its share thereof for the purposes of the Act — is not included in computing the taxpayer's business-income tax or non-business-income tax for any taxation year.

(43) That, for income or profits tax paid, and amounts prescribed in respect of a foreign affiliate of a taxpayer to be foreign accrual tax applicable, in respect of amounts included in computing the taxpayer's income under subsection 91(1) of the Act for taxation years of the taxpayer that end after March 4, 2010, section 91 of the Act be amended by adding the following after subsection (4):

(4.1) For the purposes of the definition "foreign accrual tax" in subsection 95(1), foreign accrual tax applicable to a particular amount included in computing a taxpayer's income under subsection (1) for a taxation year in respect of a particular foreign affiliate of the taxpayer shall not include any income or profits tax paid, or any amount prescribed in respect of the particular affiliate to be foreign accrual tax applicable, in respect of the particular amount where that particular amount is earned during a period in which

(a) if the taxpayer is a partnership, the share of the income of any member of the partnership that is a person resident in Canada is, under the income tax laws of any country, other than Canada, under whose laws the income of the partnership is subject to income taxation, less than its share thereof for the purposes of the Act, or

(b) in any other case, the taxpayer is considered, under the income tax laws of any country, other than Canada, under whose laws the income of the particular affiliate is subject to income taxation, to own less than all of the shares of the capital stock of the particular affiliate, of another foreign affiliate of the taxpayer in which the particular affiliate has an equity percentage, or of another foreign affiliate of the taxpayer that has an equity percentage in the particular affiliate, that are considered to be owned by the taxpayer for the purposes of the Act.

(44) That, for income or profits tax paid, and amounts referred to in subsections 5907(1.1) and (1.2) of the Income Tax Regulations, in respect of the income of a foreign affiliate of a taxpayer for taxation years of the foreign affiliate that end in taxation years of the taxpayer that end after March 4, 2010, section 5907 of the Regulations be amended by adding the following in numerical order:

(1.03) For the purposes of the description of A in the definition "underlying foreign tax" in subsection (1), income or profits tax paid in respect of the taxable earnings of a particular foreign affiliate of a corporation or in respect of a dividend received by the particular affiliate from another foreign affiliate of the corporation, and amounts by which the underlying foreign tax of the particular affiliate, or any other foreign affiliate of the corporation, is required by subsection (1.1) or (1.2) to be increased, shall not include any income or profits tax paid, or amounts by which the underlying foreign tax is otherwise so required to be increased, as the case may be, in respect of income of the particular affiliate that is earned during a period in which

(a) the corporation is considered, under the income tax laws of any country, other than Canada, under whose laws the income of the particular affiliate is subject to income taxation, to own less than all of the shares of the capital stock of the particular affiliate, of another foreign affiliate of the corporation in which the particular affiliate has an equity percentage, or of another foreign affiliate of the corporation that has an equity percentage in the particular affiliate, that are considered to be owned by the corporation for the purposes of the Act, or

(b) the corporation's share of the income of a partnership that owns, based on the assumptions contained in paragraph 96(1)(c) of the Act, shares of the capital stock of the particular affiliate is, under the income tax laws of any country, other than Canada, under whose laws the income of the partnership is subject to income taxation, less than its share thereof for the purposes of the Act.

Foreign Investment Entities and Non-Resident Trusts

(45) That the provisions of the Act relating to foreign investment entities and non-resident trusts be modified in accordance with the proposals described in the budget documents tabled by the Minister of Finance in the House of Commons on March 4, 2010.

Notice of Ways and Means Motion
to Amend the Excise Tax Act

That it is expedient to amend the Excise Tax Act as follows:

GST/HST and Purely Cosmetic Procedures

  1. (1) Section 1 of Part II of Schedule V to the Excise Tax Act is amended by adding the following in alphabetical order:

"cosmetic service supply"
« fourniture de services esthétiques »

"cosmetic service supply" means a supply of property or a service that is made for cosmetic purposes and not for medical or reconstructive purposes;

(2) Subsection (1) applies in respect of

(a) a supply made after March 4, 2010; and

(b) a supply made on or before that day if

(i) all of the consideration for the supply becomes due after March 4, 2010, or is paid after that day without having become due, or

(ii) any consideration for the supply became due, or was paid, on or before that day, unless the supplier did not, on or before that day, charge, collect or remit any amount as or on account of tax in respect of the supply under Part IX of the Act.

  2. (1) Part II of Schedule V to the Act is amended by adding the following after section 1:

  1.1 For the purposes of this Part, other than section 9, a cosmetic service supply and a supply, in respect of a cosmetic service supply, that is not made for medical or reconstructive purposes are deemed not to be included in this Part.

(2) Subsection (1) applies in respect of

(a) a supply made after March 4, 2010; and

(b) a supply made on or before that day if

(i) all of the consideration for the supply becomes due after March 4, 2010, or is paid after that day without having become due, or

(ii) any consideration for the supply became due, or was paid, on or before that day, unless the supplier did not, on or before that day, charge, collect or remit any amount as or on account of tax in respect of the supply under Part IX of the Act.

  3. (1) Section 2 of Part II of Schedule V to the Act is replaced by the following:

  2. A supply of an institutional health care service made by the operator of a health care facility if the institutional health care service is rendered to a patient or resident of the facility.

(2) Subsection (1) applies in respect of

(a) a supply made after March 4, 2010; and

(b) a supply made on or before that day if

(i) all of the consideration for the supply becomes due after March 4, 2010, or is paid after that day without having become due, or

(ii) any consideration for the supply became due, or was paid, on or before that day, unless the supplier did not, on or before that day, charge, collect or remit any amount as or on account of tax in respect of the supply under Part IX of the Act.

  4. (1) Section 5 of Part II of Schedule V to the Act is replaced by the following:

  5. A supply of a consultative, diagnostic, treatment or other health care service that is rendered by a medical practitioner to an individual.

(2) Subsection (1) applies in respect of

(a) a supply made after March 4, 2010; and

(b) a supply made on or before that day if

(i) all of the consideration for the supply becomes due after March 4, 2010, or is paid after that day without having become due, or

(ii) any consideration for the supply became due, or was paid, on or before that day, unless the supplier did not, on or before that day, charge, collect or remit any amount as or on account of tax in respect of the supply under Part IX of the Act.

  5. (1) Section 2 of Part VI of Schedule V to the Act is amended by striking out "or" at the end of paragraph (n), by adding "or" at the end of paragraph (o) and by adding the following after paragraph (o):

(p) property or a service

(i) the supply of which

(A) is a cosmetic service supply (as defined in section 1 of Part II of this Schedule), or

(B) is in respect of a cosmetic service supply referred to in  clause (A) and is not made for medical or reconstructive purposes, and

(ii) the supply of which would be included in Part II of this Schedule or Part II of Schedule VI if Part II of this Schedule were read without reference to section 1.1 or Part II of Schedule VI were read without reference to section 1.2, as the case may be.

(2) Subsection (1) applies in respect of

(a) a supply made after March 4, 2010; and

(b) a supply made on or before that day if

(i) all of the consideration for the supply becomes due after March 4, 2010, or is paid after that day without having become due, or

(ii) any consideration for the supply became due, or was paid, on or before that day, unless the supplier did not, on or before that day, charge, collect or remit any amount as or on account of tax in respect of the supply under Part IX of the Act.

  6. (1) Part II of Schedule VI to the Act is amended by adding the following after section 1.1:

  1.2. For the purposes of this Part, a cosmetic service supply (as defined in section 1 of Part II of Schedule V) and a supply, in respect of a cosmetic service supply, that is not made for medical or reconstructive purposes are deemed not to be included in this Part.

(2) Subsection (1) applies in respect of

(a) a supply made after March 4, 2010; and

(b) a supply made on or before that day if

(i) all of the consideration for the supply becomes due after March 4, 2010, or is paid after that day without having become due, or

(ii) any consideration for the supply became due, or was paid, on or before that day, unless the supplier did not, on or before that day, charge, collect or remit any amount as or on account of tax in respect of the supply under Part IX of the Act.

  7. (1) Section 34 of Part II of Schedule VI to the Act is replaced by the following:

  34. A supply of a service (other than a service the supply of which is included in any provision of Part II of Schedule V except section 9 of that Part) of installing, maintaining, restoring, repairing or modifying a property the supply of which is included in any of sections 2 to 32 and 37 to 41 of this Part, or any part for such a property if the part is supplied in conjunction with the service.

(2) Subsection (1) applies in respect of

(a) a supply made after March 4, 2010; and

(b) a supply made on or before that day if

(i) all of the consideration for the supply becomes due after March 4, 2010, or is paid after that day without having become due, or

(ii) any consideration for the supply became due, or was paid, on or before that day, unless the supplier did not, on or before that day, charge, collect or remit any amount as or on account of tax in respect of the supply under Part IX of the Act.

Simplification of the GST/HST
for the Direct Selling Industry

  8. (1) The Act is amended by adding the following after section 177:

Network Sellers

Definitions

  178. (1) The following definitions apply in this section and section 236.5.

"network commission"
« commission de réseau »

"network commission" of a sales representative of a person means an amount that is payable by the person to the sales representative under an agreement between the person and the sales representative

(a) as consideration for a supply of a service, made by the sales representative, of arranging for the sale of a select product or a sales aid of the person; or

(b) solely as a consequence of a supply of a service, made by any sales representative of the person described in paragraph (a) of the definition "sales representative", of arranging for the sale of a select product or a sales aid of the person.

"network seller"
« vendeur de réseau »

"network seller" means a person notified by the Minister of an approval under subsection (5).

"sales aid"
« matériel de promotion »

"sales aid" of a particular person that is a network seller or a sales representative of a network seller means property (other than a select product of any person) that

(a) is a customized business form or a sample, demonstration kit, promotional or instructional item, catalogue or similar personal property acquired, manufactured or produced by the particular person for sale to assist in the promotion, sale or distribution of select products of the network seller; and

(b) is neither sold nor held for sale by the particular person to a sales representative of the network seller that is acquiring the property for use as capital property.

"sales representative"
« représentant commercial »

"sales representative" of a particular person means

(a) a person (other than a person that is an employee of the particular person or that acts, in the course of its commercial activities, as agent in making supplies of select products of the particular person on behalf of the particular person) that

(i) has a contractual right under an agreement with the particular person to arrange for the sale of select products of the particular person, and

(ii) does not arrange for the sale of select products of the particular person primarily at a fixed place of business of the person other than a private residence; or

(b) a person (other than a person that is an employee of the particular person or that acts, in the course of its commercial activities, as agent in making supplies of select products of the particular person on behalf of the particular person) that has a contractual right under an agreement with the particular person to be paid an amount by the particular person solely as a consequence of a supply of a service, made by a person described in paragraph (a), of arranging for the sale of a select product or a sales aid of the particular person.

"select product"
« produit déterminé »

"select product" of a person means tangible personal property that

(a) is acquired, manufactured or produced by the person for supply by the person for consideration, otherwise than as used property, in the ordinary course of business of the person; and

(b) is ordinarily acquired by consumers by way of sale.

Qualifying network seller

  (2) For the purposes of this section, a person is a qualifying network seller throughout a fiscal year of the person if

(a) all or substantially all of the total of all consideration, included in determining the income from a business of the person for the fiscal year, for supplies made in Canada by way of sale is for

(i) supplies of select products of the person, made by the person, by way of sales that are arranged for by sales representatives of the person (in this subsection referred to as "select supplies"), or

(ii) where the person is a direct seller (as defined in section 178.1), supplies by way of sale of exclusive products (as defined in that section) of the person made by the person to independent sales contractors (as defined in that section) of the person at any time when an approval of the Minister for the application of section 178.3 to the person is in effect;

(b) all or substantially all of the total of all consideration, included in determining the income from a business of the person for the fiscal year, for select supplies is for select supplies made to consumers;

(c) all or substantially all of the sales representatives of the person to which network commissions become payable by the person during the fiscal year are sales representatives, each having a total of such network commissions of not more than the amount determined by the formula

$30,000 × A/365

where

A is the number of days in the fiscal year; and

(d) the person and each of its sales representatives have made joint elections under subsection (4).

Application

  (3) A person may apply to the Minister, in prescribed form containing prescribed information, to have subsection (7) apply to the person and each of its sales representatives, beginning on the first day of a fiscal year of the person, if the person

(a) is registered under Subdivision d of Division V and is reasonably expected to be, throughout the fiscal year,

(i) engaged exclusively in commercial activities, and

(ii) a qualifying network seller; and

(b) files the application in prescribed manner before

(i) in the case of a person that has never made a supply of a select product of the person, the day in the fiscal year on which the person first makes a supply of a select product of the person, and

(ii) in any other case, the first day of the fiscal year.

Joint election

  (4) If subsection (3) applies to a person or a person is a network seller, the person and a sales representative of the person may jointly elect, in prescribed form containing prescribed information, to have subsection (7) apply to them at all times when an approval granted under subsection (5) is in effect.

Approval or refusal

  (5) If the Minister receives an application under subsection (3) from a person, the Minister may approve the application of subsection (7) to the person and each of its sales representatives beginning on the first day of a fiscal year of the person or may refuse the application and the Minister shall notify the person in writing of the approval and the day on which it becomes effective or of the refusal.

Evidence of joint elections

  (6) Every network seller shall maintain evidence satisfactory to the Minister that the network seller and each of its sales representatives have made joint elections under subsection (4).

Effect of approval

  (7) For the purposes of this Part, if, at any time when an approval granted under subsection (5) in respect of a network seller and each of its sales representatives is in effect, a network commission becomes payable by the network seller to a sales representative of the network seller as consideration for a taxable supply (other than a zero-rated supply) of a service made in Canada by the sales representative, the taxable supply is deemed not to be a supply.

Sales aids

  (8) For the purposes of this Part, if, at any time when an approval granted under subsection (5) in respect of a network seller and each of its sales representatives is in effect, the network seller or a sales representative of the network seller makes in Canada a taxable supply by way of sale of a sales aid of the network seller or of the sales representative, as the case may be, to a sales representative of the network seller, the taxable supply is deemed not to be a supply.

Host gifts

  (9) For the purposes of this Part, if, at any time when an approval granted under subsection (5) in respect of a network seller and each of its sales representatives is in effect, the network seller or a particular sales representative of the network seller makes a supply of property to an individual as consideration for the supply by the individual of a service of acting as a host at an occasion that is organized for the purpose of allowing a sales representative of the network seller or the particular sales representative, as the case may be, to promote, or to arrange for the sale of, select products of the network seller, the individual is deemed not to have made a supply of the service and the service is deemed not to be consideration for a supply.

Notification of refusal

  (10) If the Minister notifies a person of a refusal under subsection (5) at any time when the person and a sales representative of the person have made a joint election under subsection (4), the person shall forthwith notify the sales representative of the refusal in a manner satisfactory to the Minister.

Revocation by Minister

  (11) The Minister may revoke an approval granted under subsection (5) in respect of a network seller and each of its sales representatives, effective on the first day of a fiscal year of the network seller, if, before that day, the Minister notifies the network seller of the revocation and the day on which it becomes effective and if

(a) the network seller fails to comply with any provision of this Part;

(b) it can reasonably be expected that the network seller will not be a qualifying network seller throughout the fiscal year;

(c) the network seller requests in writing that the Minister revoke the approval;

(d) the notice referred to in subsection 242(1) has been given to, or the request referred to in subsection 242(2) has been filed by, the network seller; or

(e) it can reasonably be expected that the network seller will not be engaged exclusively in commercial activities throughout the fiscal year.

Deemed revocation

  (12) If an approval granted under subsection (5) in respect of a network seller and each of its sales representatives is in effect at any time in a particular fiscal year of the network seller and, at any time during the particular fiscal year, the network seller ceases to be engaged exclusively in commercial activities or the Minister cancels the registration of the network seller, the approval is deemed to be revoked, effective on the first day of the fiscal year of the network seller immediately following the particular fiscal year, unless, on that first day, the network seller is registered under Subdivision d of Division V and it is reasonably expected that the network seller will be engaged exclusively in commercial activities throughout that following fiscal year.

Effect of revocation

  (13) If an approval granted under subsection (5) in respect of a network seller and each of its sales representatives is revoked under subsection (11) or (12), the following rules apply:

(a) the approval ceases to have effect immediately before the day on which the revocation becomes effective;

(b) the network seller shall forthwith notify each of its sales representatives in a manner satisfactory to the Minister of the revocation and the day on which it becomes effective; and

(c) a subsequent approval granted under subsection (5) in respect of the network seller and each of its sales representatives shall not become effective before the first day of a fiscal year of the network seller that is at least two years after the day on which the revocation became effective.

Failure to notify on revocation

  (14) For the purposes of this Part, a taxable supply (other than a zero-rated supply) of a service made in Canada by a sales representative of a network seller is deemed not to be a supply if

(a) the consideration for the taxable supply is a network commission that becomes payable by the network seller to the sales representative at any time after an approval granted under subsection (5) in respect of the network seller and each of its sales representatives ceases to have effect as a consequence of a revocation on the basis of any of paragraphs (11)(a) to (c);

(b) the approval could not have been revoked on the basis of paragraph (11)(d) or (e) and would not have otherwise been revoked under subsection (12);

(c) at the time the network commission becomes payable, the sales representative

(i) has not been notified of the revocation by the network seller, as required under paragraph (13)(b), or by the Minister, and

(ii) neither knows, nor ought to know, that the approval ceased to have effect; and

(d) an amount has not been charged or collected as, or on account of, tax in respect of the taxable supply.

Failure to notify on revocation

  (15) Subsection (16) applies if the following conditions are satisfied:

(a) the consideration for a taxable supply (other than a zero-rated supply) of a service made in Canada by a sales representative of a network seller is a network commission that becomes payable by the network seller to the sales representative at any time after an approval granted under subsection (5) in respect of the network seller and each of its sales representatives ceases to have effect as a consequence of a revocation under subsection (11) or (12);

(b) the approval was, or could at any time otherwise have been, revoked on the basis of paragraph (11)(d) or (e) or was, or would at any time otherwise have been, revoked under subsection (12);

(c) at the time the network commission becomes payable, the sales representative

(i) has not been notified of the revocation by the network seller, as required under paragraph (13)(b), or by the Minister, and

(ii) neither knows, nor ought to know, that the approval ceased to have effect; and

(d) an amount has not been charged or collected as, or on account of, tax in respect of the taxable supply.

Failure to notify on revocation

  (16) If the conditions described in paragraphs (15)(a) to (d) are satisfied, the following rules apply for the purposes of this Part:

(a) section 166 shall not apply in respect of the taxable supply described in paragraph (15)(a);

(b) tax that becomes payable or that would, in the absence of section 166, become payable in respect of the taxable supply shall not be included in determining the net tax of the sales representative referred to in paragraph (15)(a); and

(c) the consideration for the taxable supply shall not, in determining whether the sales representative is a small supplier, be included in the total referred to in paragraph 148(1)(a) or (2)(a).

Sales aids on revocation

  (17) For the purposes of this Part, a taxable supply of a sales aid of a particular sales representative of a network seller made in Canada by way of sale to another sales representative of the network seller is deemed not to be a supply if

(a) the consideration for the taxable supply becomes payable at any time after an approval granted under subsection (5) in respect of the network seller and each of its sales representatives ceases to have effect as a consequence of a revocation under subsection (11) or (12);

(b) at the time the consideration becomes payable, the particular sales representative

(i) has not been notified of the revocation by the network seller, as required under paragraph (13)(b), or by the Minister, and

(ii) neither knows, nor ought to know, that the approval ceased to have effect; and

(c) an amount has not been charged or collected as, or on account of, tax in respect of the taxable supply.

Restriction on input tax credits

(18) If

(a) a registrant that is a network seller in respect of which an approval granted under subsection (5) is in effect acquires or imports property (other than a select product of the network seller) or a service or brings it into a participating province for supply to a sales representative of the network seller or an individual related to the sales representative,

(b) tax becomes payable in respect of the acquisition, importation or bringing in, as the case may be,

(c) the property or service is so supplied by the registrant for no consideration or for consideration that is less than the fair market value of the property or service, and

(d) the sales representative or individual is not acquiring the property or service for consumption, use or supply exclusively in the course of commercial activities of the sales representative or individual, as the case may be,

the following rules apply:

(e) no tax is payable in respect of the supply, and

(f) in determining an input tax credit of the registrant, no amount shall be included in respect of tax that becomes payable, or is paid without having become payable, by the registrant in respect of the property or service.

Appropriations for sales representatives

  (19) For the purposes of this Part, if a registrant that is a network seller in respect of which an approval granted under subsection (5) is in effect appropriates, at any time, property (other than a select product of the network seller) that was acquired, manufactured or produced, or any service acquired or performed, in the course of commercial activities of the registrant, to or for the benefit of a sales representative of the network seller, or any individual related to the sales representative, that is not acquiring the property or service for consumption, use or supply exclusively in the course of commercial activities of the sales representative or individual, in any manner (otherwise than by way of supply for consideration equal to the fair market value of the property or service), the registrant shall be deemed

(a) to have made a supply of the property or service for consideration paid at that time equal to the fair market value of the property or service at that time; and

(b) except where the supply is an exempt supply, to have collected, at that time, tax in respect of the supply calculated on that consideration.

Exception

  (20) Subsection (19) does not apply to property or a service appropriated by a registrant if the registrant was not entitled to claim an input tax credit in respect of the property or service because of section 170.

Ceasing to be a registrant

  (21) If, at any time when an approval granted under subsection (5) in respect of a network seller and each of its sales representatives is in effect, a sales representative of the network seller ceases to be a registrant, paragraph 171(3)(a) does not apply to sales aids of the sales representative that were supplied to the sales representative by the network seller or another sales representative of the network seller at any time when the approval was in effect.

Non-arm's length supply

  (22) Section 155 does not apply to the supply described in subsection (9) made to an individual acting as a host.

  (2) Subsection (1) applies in respect of any fiscal year of a person that begins on or after January 1, 2010, except that, for the purposes of applying section 178 of the Act, as enacted by subsection (1), in respect of a fiscal year of a person that begins during 2010, the following rules also apply:

(a) a person may, despite subparagraphs 178(3)(b)(i) and (ii) of the Act, as enacted by subsection (1), apply under subsection 178(3) of the Act, as enacted by subsection (1), to have subsection 178(7) of the Act, as enacted by subsection (1), apply to the person and each of its sales representatives, beginning on a day in 2010 that the person specifies in the application, if the person files the application before that day and that day is the first day of a reporting period of the person that begins during the fiscal year;

(b) if the person makes an application in accordance with paragraph (a),

(i) each reference in subsections 178(2), (3), (5) and (11) of the Act, as enacted by subsection (1), to "fiscal year" is to be read as a reference to "qualifying period", and

(ii) each reference in subsection 178(12) of the Act, as enacted by subsection (1), to "particular fiscal year" is to be read as a reference to "qualifying period"; and

(c) "qualifying period" of a person means the period beginning on the day specified in an application made by the person in accordance with paragraph (a) and ending on the last day of the fiscal year.

  9. (1) The Act is amended by adding the following after section 236.4:

First and second variant years

  236.5 (1) For the purposes of this section, a fiscal year of a network seller in respect of which an approval granted under 178(5) is in effect is

(a) the first variant year of the network seller if the network seller

(i) fails to meet the condition referred to in paragraph 178(2)(c) in respect of the fiscal year, and

(ii) meets the condition referred to in paragraph 178(2)(c) for each fiscal year of the network seller, in respect of which an approval granted under 178(5) is in effect, preceding the fiscal year; and

(b) the second variant year of the network seller if

(i) the fiscal year is after the first variant year of the network seller,

(ii) the network seller fails to meet the condition referred to in paragraph 178(2)(c) in respect of the fiscal year, and

(iii) the network seller meets the condition referred to in paragraph 178(2)(c) for each fiscal year (other than the first variant year) of the network seller, in respect of which an approval granted under 178(5) is in effect, preceding the fiscal year.

Adjustment by network seller if conditions not met

  (2) Subject to subsections (3) and (4), if a network seller fails to satisfy any condition referred to in paragraphs 178(2)(a) to (c) for a fiscal year of the network seller in respect of which an approval granted under subsection 178(5) is in effect and, at any time during the fiscal year, a network commission would, if this Part were read without reference to subsection 178(7), become payable by the network seller to a sales representative of the network seller as consideration for a taxable supply (other than a zero-rated supply) made in Canada by the sales representative, the network seller shall, in determining the net tax for the first reporting period of the network seller following the fiscal year, add an amount equal to interest, at the prescribed rate, on the total amount of tax that would be payable in respect of the taxable supply if tax were payable in respect of the taxable supply, computed for the period beginning on the earliest day on which consideration for the taxable supply is paid or becomes due and ending on the day on or before which the network seller is required to file a return for the reporting period that includes that earliest day.

No adjustment for first variant year

  (3) In determining the net tax for the first reporting period of a network seller following the first variant year of the network seller, the network seller is not required to add an amount in accordance with subsection (2) if

(a) the network seller satisfies the conditions referred to in paragraphs 178(2)(a) and (b) for the first variant year and for each fiscal year, in respect of which an approval granted under subsection 178(5) is in effect, preceding the first variant year; and

(b) the network seller would meet the condition referred to in paragraph 178(2)(c) for the first variant year if the reference in that paragraph to "all or substantially all" were read as a reference to  "at least 80%".

No adjustment for second variant year

  (4) In determining the net tax for the first reporting period of the network seller following the second variant year of the network seller, the network seller is not required to add an amount in accordance with subsection (2) if

(a) the network seller satisfies the conditions referred to in paragraphs 178(2)(a) and (b) for the second variant year and for  each fiscal year, in respect of which an approval granted under subsection 178(5) is in effect, preceding the second variant year;

(b) the network seller would meet the condition referred to in paragraph 178(2)(c) for each of the first variant year and the second variant year if the reference in that paragraph to "all or substantially all" were read as a reference to "at least 80%"; and

(c) within 180 days after the beginning of the second variant year, the network seller requests in writing that the Minister revoke the approval.

Adjustment by network seller due to notification failure

  (5) If, at any time after an approval granted under subsection 178(5) in respect of a network seller and each of its sales representatives ceases to have effect as a consequence of a revocation under subsection 178(11) or (12), a network commission would, if this Part were read without reference to subsection 178(7), become payable as consideration for a taxable supply (other than a zero-rated supply) made in Canada by a sales representative of the network seller that has not been notified, as required under paragraph 178(13)(b), of the revocation and an amount is not charged or collected as, or on account of, tax in respect of the taxable supply, the network seller shall, in determining the net tax for the particular reporting period of the network seller that includes the earliest day on which consideration for the taxable supply is paid or becomes due, add an amount equal to interest, at the prescribed rate, on the total amount of tax that would be payable in respect of the taxable supply if tax were payable in respect of the taxable supply, computed for the period beginning on that earliest day and ending on the day on or before which the network seller is required to file a return for the particular reporting period.

  (2) Subsection (1) applies in respect of any fiscal year of a person that begins on or after January 1, 2010, except that, if the person makes an application in accordance with paragraph 8(2)(a) in respect of a qualifying period (as defined in paragraph 8(2)(c)), for the purposes of applying subsections 236.5(1) to (4) of the Act, as enacted by subsection (1), each reference in those subsections to "fiscal year" is to be read, in respect of a fiscal year of the person that begins in 2010, as a reference to "qualifying period".

  10. (1) Section 242 of the Act is amended by adding the following after subsection (2.2):

Request for cancellation

  (2.3) If, at any time when an approval granted under subsection 178(5) in respect of a network seller (as defined in subsection 178(1)) and each of its sales representatives (as defined in that subsection) is in effect, a sales representative of the network seller would be a small supplier if the approval had been in effect at all times before that time and the sales representative files with the Minister in prescribed manner a request, in prescribed form containing prescribed information, to have the registration of the sales representative cancelled, the Minister shall cancel the registration of the sales representative.

  (2) Subsection (1) is deemed to have come into force on January 1, 2010.

Financial Services

  11. (1) Paragraph (l) of the definition "financial service" in subsection 123(1) of the Act is replaced by the following:

(l) the agreeing to provide, or the arranging for, a service that is

(i) referred to in any of paragraphs (a) to (i), and

(ii) not referred to in any of paragraphs (n) to (t), or

  (2) The definition "financial service" in subsection 123(1) of the Act is amended by adding the following after paragraph (q):

(q.1) an asset management service,

  (3) The definition "financial service" in subsection 123(1) of the Act is amended by adding the following after paragraph (r.2):

(r.3) a service (other than a prescribed service) of managing credit that is in respect of credit cards, charge cards, credit accounts, charge accounts, loan accounts or accounts in respect of any advance and is provided to a person granting, or potentially granting, credit in respect of those cards or accounts, including a service provided to the person of

(i) checking, evaluating or authorizing credit,

(ii) making decisions on behalf of the person in relation to a grant, or an application for a grant, of credit,

(iii) creating or maintaining records for the person in relation to a grant, or an application for a grant, of credit or in relation to the cards or accounts, or

(iv) monitoring another person's payment record or dealing with payments made, or to be made, by the other person,

(r.4) a service (other than a prescribed service) that is preparatory to the provision or the potential provision of a service referred to in any of paragraphs (a) to (i) and (l), or that is provided in conjunction with a service referred to in any of those paragraphs, and that is

(i) a service of collecting, collating or providing information, or

(ii) a market research, product design, document preparation, document processing, customer assistance, promotional or advertising service or a similar service,

(r.5) property (other than a financial instrument or prescribed property) that is delivered or made available to a person in conjunction with the rendering by the person of a service referred to in any of paragraphs (a) to (i) and (l),

  (4) Subsection 123(1) of the Act is amended by adding the following in alphabetical order:

"asset management service"
« service de gestion des actifs »

"asset management service" means a service (other than a prescribed service) rendered by a particular person in respect of the assets or liabilities of another person that is a service of

(a) managing or administering the assets or liabilities, irrespective of the level of discretionary authority the particular person has to manage some or all of the assets or liabilities,

(b) providing research, analysis, advice or reports in respect of the assets or liabilities,

(c) determining which assets or liabilities are to be acquired or disposed of, or

(d) acting to realize performance targets or other objectives in respect of the assets or liabilities;

"management or administrative service"
« service de gestion ou d'administration »

"management or administrative service" includes an asset management service;

  (5) Subsections (1) to (4) are deemed to have come into force on December 17, 1990, except that, for the purposes of Part IX of the Act, other than Division IV of that Part, subsections (1) to (4) do not apply in respect of a service rendered under an agreement, evidenced in writing, for a supply if

(a) all of the consideration for the supply became due or was paid on or before December 14, 2009;

(b) the supplier did not, on or before December 14, 2009, charge, collect or remit any amount as or on account of tax under Part IX of the Act in respect of the supply; and

(c) the supplier did not, on or before December 14, 2009, charge, collect or remit any amount as or on account of tax under Part IX of the Act in respect of any other supply that is made under the agreement and that includes the provision of a service referred to in any of paragraphs (q), (q.1) and (r.3) to (r.5) of the definition "financial service" in subsection 123(1) of the Act, as amended by subsections (1) to (4).

  (6) Despite section 298 of the Act, the Minister of National Revenue may assess, reassess or make an additional assessment of any amount payable or remittable by a person in respect of a supply of a service referred to in any of paragraphs (q), (q.1) and (r.3) to (r.5) of the definition "financial service" in subsection 123(1) of the Act, as amended by subsections (2) to (4), at any time on or before the later of the day that is one year after the day on which this Act is assented to and the last day of the period otherwise allowed under that section for making the assessment, reassessment or additional assessment.

Notice of Ways and Means Motion to Amend the Customs Tariff

That it is expedient to amend the Customs Tariff to provide among other things:

1. That the List of Tariff Provisions set out in the schedule to the Customs Tariff be amended to provide that the Most-Favoured-Nation Tariff rates of customs duty and, where necessary, the applicable preferential tariff rates of customs duty, be "Free", for the following tariff items:

2511.10.00 2514.00.10 2515.20.20 2516.12.10 2516.20.20 2516.90.20 2517.30.00 2518.20.00 2530.90.10 2705.00.00 2707.40.90 2707.99.10 2710.11.19 2710.19.20 2710.91.10 2710.91.91 2710.99.20 2710.99.91 2711.11.00 2712.90.10 2713.20.90 2714.10.00 2715.00.10 2804.10.00 2804.21.00 2804.29.90 2804.30.00 2804.40.00 2804.69.00 2805.12.00 2805.19.90 2805.30.00 2811.19.90 2811.21.90 2811.29.10 2811.29.99 2812.10.90 2812.90.90 2817.00.90 2819.90.90 2821.10.00 2821.20.00 2823.00.90 2824.10.00 2824.90.10 2824.90.90 2825.70.00 2825.90.10 2826.19.00 2826.90.10 2826.90.90 2827.10.90 2827.20.00 2827.35.00 2827.39.20 2827.39.30 2827.39.90 2827.41.00 2827.49.00 2827.60.10 2827.60.99 2829.19.90 2829.90.20 2833.24.00 2833.25.90 2833.40.90 2834.10.00 2834.29.10 2835.10.00 2835.22.10 2835.22.90 2835.24.00 2835.26.90 2835.29.21 2835.29.29 2835.29.90 2835.31.90 2835.39.90 2836.20.90 2836.91.90 2836.92.00 2836.99.90 2841.50.20 2841.50.90 2841.61.00 2841.69.00 2841.70.90 2841.80.00 2841.90.20 2841.90.90 2842.10.10 2842.90.20 2842.90.91 2843.10.00 2843.21.00 2843.29.00 2843.30.91 28 43.30.99 2843.90.90 2846.10.90 2846.90.00 2850.00.19 2852.00.20 2852.00.30 2852.00.40 2852.00.50 2852.00.60 2852.00.70 2852.00.80 2852.00.90 2853.00.00 2903.15.00 2903.21.00 2903.39.00 2903.41.00 2903.42.00 2903.43.00 2903.44.00 2903.45.00 2903.46.00 2903.47.00 2903.49.00 2903.61.10 2903.69.90 2904.10.10 2904.10.99 2904.20.00 2904.90.00 2905.16.90 2905.17.00 2905.19.10 2905.19.99 2905.22.00 2905.32.00 2905.42.00 2905.43.00 2905.49.10 2905.49.90 2905.51.00 2905.59.00 2906.12.00 2906.13.00 2906.19.90 2906.21.90 2906.29.00 2907.12.00 2907.15.90 2907.19.10 2907.19.99 2907.21.90 2907.22.90 2907.29.20 2907.29.90 2908.11.90 2908.19.90 2908.91.00 2908.99.19 2908.99.90 2909.30.00 2909.41.00 2909.43.00 2909.44.90 2909.49.91 2909.49.92 2909.49.99 2909.50.90 2909.60.20 2909.60.99 2910.10.00 2910.20.00 2910.40.90 2910.90.90 2911.00.00 2912.19.10 2912.19.99 2912.29.00 2912.30.00 2912.50.00 2913.00.00 2914.11.00 2914.19.00 2914.22.00 2914.23.00 2914.31.00 2914.39.00 2914.40.90 2914.50.90 2914.61.00 2914.69.90 2914.70.00 2915.13.90 2915.24.00 2915.29.90 2915.32.00 2915.33.00 2915.36.00 2915.39.90 2915.50.10 2915.50.99 2915.90.92 2915.90.99 2916.12.20 2916.12.90 2916.19.00 2916.20.10 2916.20.99 2916.31.00 2916.32.00 2916.34.00 2916.35.00 2917.11.19 2917.11.90 2917.12.99 2917.13.99 2917.14.90 2917.19.99 2917.20.00 2917.32.00 2917.33.00 2917.34.10 2917.34.99 2917.39.90 2918.18.90 2918.19.10 2918.19.99 2918.23.00 2918.29.90 2918.91.00 2918.99.90 2919.90.10 2919.90.99 2920.11.00 2920.19.00

2920.90.10 2920.90.99 2921.11.90 2921.19.20 2921.19.91 2921.19.99 2921.22.00 2921.29.90 2921.30.90 2921.42.90 2921.43.90 2921.44.90 2921.45.91 2921.45.99 2921.46.00 2921.49.00 2921.51.90 2921.59.90 2922.11.00 2922.12.00 2922.13.00 2922.14.00 2922.19.91 2922.19.99 2922.21.00 2922.29.29 2922.29.90 2922.31.00 2922.39.90 2922.41.90 2922.44.00 2922.49.90 2922.50.90 2923.10.90 2923.20.90 2923.90.10 2923.90.99 2924.11.00 2924.12.90 2924.19.10 2924.19.99 2924.21.00 2924.23.19 2924.23.99 2924.24.00 2924.29.91 2924.29.99 2925.11.00 2925.12.00 2925.19.00 2925.21.90 2925.29.90 2926.30.00 2926.90.90 2929.90.10 2929.90.90 2930.20.10 2930.20.99 2930.30.20 2930.30.99 2930.50.90 2930.90.21 2930.90.29 2930.90.99 2931.00.10 2931.00.99 2932.19.00 2932.29.90 2932.91.00 2932.92.00 2932.93.00 2932.94.00 2932.95.00 2932.99.00 2933.19.90 2933.29.90 2933.32.90 2933.33.00 2933.39.90 2933.41.00 2933.49.10 2933.49.90 2933.55.00 2933.59.91 2933.59.99 2933.69.10 2933.69.99 2933.71.90 2933.72.00 2933.79.00 2933.91.90 2933.99.22 2933.99.90 2934.10.00 2934.20.90 2934.30.90 2934.91.00 2934.99.10 2934.99.99 2935.00.20 2935.00.99 2937.19.19 2937.29.10 2937.39.19 2937.50.10 2937.50.29 2937.50.39 2937.90.19 2938.90.00 2940.00.00 2942.00.90 3202.10.10 3203.00.10 3205.00.00 3206.42.90 3206.49.29 3206.49.30 3206.49.90 3207.10.90 3207.20.00 3207.30.90 3207.40.90 3212.10.00 3212.90.90 3215.11.00 3215.19.90 3215.90.90 3801.30.90 3801.90.00 3806.30.90 3807.00.10 3809.91.20 3809.91.90 3809.92.10 3809.92.90 3809.93.00 3810.10.90 3810.90.00 3811.11.00 3811.19.00 3811.21.90 3811.29.00 3811.90.00 3812.10.00 3812.20.90 3812.30.90 3813.00.00 3814.00.00 3815.19.10 3815.90.10 3816.00.90 3817.00.90 3821.00.90 3823.11.00 3823.12.00 3823.19.00 3823.70.90 3824.10.00 3824.30.00 3824.40.00 3824.50.90 3824.60.00 3824.71.00 3824.72.00 3824.73.00 3824.74.00 3824.75.00 3824.76.00 3824.77.00 3824.78.00 3824.79.00 3824.81.00 3824.82.00 3824.83.00 3824.90.20 3824.90.30 3824.90.49 3824.90.90 3903.11.00 3903.19.10 3903.19.90 3903.20.10 3903.20.90 3903.30.10 3903.30.90 3903.90.00 3904.10.90 3904.21.00 3904.22.00 3904.30.90 3904.40.00 3904.50.10 3904.90.00 3905.12.00 3905.19.90 3905.21.00 3905.29.90 3905.91.10 3905.99.10 3906.10.90 3906.90.91 3907.20.90 3907.30.90 3907.40.10 3907.50.00 3907.60.90 3907.70.90 3907.91.00 3907.99.90 3909.30.10 3909.40.91 3909.50.90 3910.00.90 3911.10.10 3911.90.90 3912.11.90 3912.12.00 3912.20.10 3912.39.10 3912.90.90 3913.10.00 3913.90.90 3914.00.10 3916.10.00 3916.90.11 3916.90.99 3917.10.10 3917.21.00 3917.22.00 3917.23.90 3917.29.90 3917.31.90 3917.40.90

3919.90.99 3920.10.10 3920.10.90 3920.20.20 3920.20.90 3920.30.90 3920.43.90 3920.49.90 3920.51.90 3920.59.10 3920.61.10 3920.62.90 3920.63.00 3920.71.00 3920.73.10 3920.79.10 3920.79.29 3920.92.90 3920.93.00 3920.94.10 3920.99.91 4005.10.90 4005.20.00 4005.91.90 4005.99.00 4006.10.00 4006.90.90 4007.00.90 4008.11.90 4008.19.10 4008.19.90 4008.21.90 4008.29.10 4008.29.90 4009.11.00 4009.12.00 4009.21.00 4009.22.90 4009.31.90 4009.32.90 4009.41.90 4009.42.90 4010.11.10 4010.11.20 4010.12.19 4010.12.29 4010.19.19 4010.19.29 4104.11.22 4104.11.29 4104.11.31 4104.11.39 4104.11.41 4104.11.49 4104.11.91 4104.11.99 4104.19.22 4104.19.29 4104.19.31 4104.19.39 4104.19.41 4104.19.49 4104.19.91 4104.19.99 4104.41.12 4104.41.19 4104.41.92 4104.41.99 4104.49.12 4104.49.19 4104.49.22 4104.49.29 4104.49.92 4104.49.93 4104.49.99 4105.10.12 4105.10.19 4105.10.29 4105.10.99 4105.30.12 4105.30.19 4105.30.99 4106.21.29 4106.21.99 4106.22.22 4106.22.29 4106.22.92 4106.22.99 4106.31.10 4106.31.92 4106.31.99 4106.32.20 4106.32.90 4106.91.20 4106.91.90 4106.92.20 4106.92.90 4107.11.12 4107.11.19 4107.11.92 4107.11.99 4107.12.12 4107.12.19 4107.12.92 4107.12.99 4107.19.12 4107.19.19 4107.19.92 4107.19.93 4107.19.99 4107.91.20 4107.91.90 4107.92.20 4107.92.90 4107.99.20 4107.99.30 4107.99.90 4112.00.90 4113.10.20 4113.10.90 4113.20.20 4113.20.90 4113.90.20 4113.90.90 4114.10.00 4114.20.90 4302.11.00 4302.19.22 4302.19.29 4302.19.30 4302.19.90 4302.20.00 4408.31.10 4408.39.10 4413.00.00 4415.20.90 4416.00.90 5111.11.50 5111.19.31 5111.19.32 5111.19.39 5111.19.90 5111.20.19 5111.20.29 5111.20.91 5111.20.92 5111.30.12 5111.30.13 5111.30.18 5111.30.19 5111.30.29 5111.30.91 5111.30.92 5111.90.50 5111.90.91 5111.90.92 5112.11.60 5112.11.90 5112.19.19 5112.19.94 5112.19.95 5112.20.30 5112.20.91 5112.20.92 5112.30.29 5112.30.30 5112.30.91 5112.30.94 5112.90.30 5112.90.91 5112.90.92 5113.00.90 5203.00.90 5208.12.90 5208.13.90 5208.19.90 5208.21.99 5208.22.90 5208.23.99 5208.29.99 5208.31.99 5208.32.90 5208.33.99 5208.39.90 5208.41.90 5208.42.99 5208.43.90 5208.49.99 5208.51.90 5208.52.90 5208.59.99 5209.11.90 5209.12.90 5209.19.90 5209.21.90 5209.22.90 5209.29.90 5209.31.90 5209.32.90 5209.39.90 5209.41.90 5209.42.90 5209.43.99 5209.49.90 5209.51.00 5209.59.90 5211.42.90 5309.11.90 5309.19.90 5309.21.90 5309.29.90 5310.90.99 5311.00.90 5407.52.90 5407.61.11 5407.61.93 5407.61.99 5407.92.90 5408.10.90 5408.21.90 5408.22.29 5408.22.99 5408.23.19 5408.23.99 5408.24.19 5408.24.99 5408.31.90 5408.32.90 5408.33.90 5408.34.90 5515.13.99 5515.22.00 5516.31.00

5516.32.00 5516.33.00 5516.34.00 5603.11.30 5603.11.40 5603.11.50 5603.11.99 5603.12.30 5603.12.40 5603.12.50 5603.12.99 5603.13.30 5603.13.40 5603.13.50 5603.13.99 5603.14.30 5603.14.40 5603.14.50 5603.14.99 5603.91.50 5603.91.90 5603.92.60 5603.92.99 5603.93.60 5603.93.90 5603.94.50 5603.94.90 5606.00.90 5801.10.99 5801.22.29 5801.22.99 5801.23.90 5801.24.90 5801.25.10 5801.25.29 5801.26.90 5801.31.90 5801.32.90 5801.33.90 5801.34.90 5801.35.99 5801.36.90 5801.90.99 5802.11.90 5802.19.90 5802.20.90 5802.30.90 5803.00.19 5803.00.22 5803.00.29 5803.00.99 5804.10.30 5804.10.90 5804.21.90 5804.29.90 5804.30.30 5804.30.90 5806.10.19 5806.10.99 5806.20.90 5806.31.40 5806.31.50 5806.31.90 5806.32.99 5806.39.99 5806.40.90 5807.10.19 5807.10.29 5807.90.90 5808.10.90 5808.90.90 5809.00.90 5810.10.90 5810.91.30 5810.91.90 5810.92.90 5810.99.90 6804.10.00 6804.23.00 6805.10.20 6805.10.90 6805.20.20 6805.20.90 6805.30.20 6805.30.90 6806.10.10 6806.10.90 6806.20.00 6806.90.90 6814.10.90 6814.90.00 6815.10.20 7019.31.90 7019.32.20 7019.32.90 7019.39.99 7019.40.20 7019.51.20 7019.51.99 7019.52.20 7019.52.99 7019.59.20 7019.59.99 7019.90.40 7019.90.90 7106.92.19 7106.92.21 7106.92.22 7107.00.00 7108.13.20 7109.00.00 7111.00.00 7115.10.00 7115.90.90 7202.60.00 7202.70.00 7202.91.00 7202.92.10 7202.92.90 7202.93.00 7202.99.00 7205.10.10 7206.90.00 7303.00.00 7307.11.10 7307.11.90 7307.19.91 7307.19.99 7307.21.10 7307.21.91 7307.21.99 7307.22.90 7307.23.10 7307.23.90 7307.29.91 7307.29.99 7307.91.19 7307.91.20 7307.91.90 7307.92.90 7307.93.10 7307.99.20 7307.99.91 7307.99.99 7309.00.90 7310.10.11 7310.10.19 7310.10.90 7310.21.00 7310.29.00 7311.00.90 7315.12.91 7315.12.99 7315.81.90 7315.82.91 7315.82.92 7315.89.91 7315.89.92 7315.90.91 7315.90.99 7318.11.00 7318.12.00 7318.13.90 7318.14.00 7318.15.90 7318.16.00 7318.19.00 7318.21.00 7318.22.90 7318.23.00 7318.24.00 7318.29.90 7320.10.00 7320.20.90 7320.90.90 7324.29.10 7325.91.10 7325.91.90 7407.10.11 7407.10.12 7407.10.21 7407.10.29 7407.21.21 7407.21.22 7407.21.90 7407.29.21 7407.29.29 7407.29.90 7408.11.31 7408.11.32 7408.19.00 7408.21.20 7408.21.90 7408.22.10 7408.22.90 7408.29.10 7408.29.90 7411.10.00 7411.21.00 7411.22.00 7411.29.00 7412.10.00 7412.20.00 7413.00.00 7415.10.00 7415.21.00 7415.29.00 7415.33.90 7415.39.00 7603.10.00 7603.20.00 7604.10.12 7604.10.20 7604.21.00 7604.29.12 7604.29.20 7605.19.00 7605.29.00 7606.11.20 7606.12.90 7606.91.90 7606.92.90 7607.11.19 7607.19.90 7608.10.00 7611.00.90 7613.00.00 7614.10.00 7614.90.00 7616.10.90 7801.10.90 7801.99.00 7804.11.90

7804.19.00 7804.20.00 7806.00.10 7806.00.90 8003.00.20 8007.00.20 8007.00.30 8101.99.90 8102.95.10 8102.95.20 8102.99.00 8103.90.00 8104.11.00 8104.19.90 8104.30.00 8104.90.00 8105.20.90 8105.90.00 8107.90.00 8108.20.90 8108.30.00 8108.90.90 8109.20.90 8109.30.00 8109.90.90 8111.00.12 8111.00.22 8111.00.40 8112.51.00 8112.52.00 8112.59.00 8112.92.90 8112.99.20 8112.99.90 8113.00.00 8205.70.20 8207.19.20 8207.19.90 8207.20.10 8207.30.10 8207.40.10 8207.50.90 8207.60.10 8207.80.10 8209.00.10 8209.00.92 8301.20.90 8301.30.00 8301.40.10 8301.60.00 8307.10.90 8307.90.00 8308.10.90 8308.90.90 8309.10.00 8309.90.90 8311.10.00 8311.20.00 8311.30.00 8311.90.90 8401.10.00 8401.40.00 8403.10.00 8407.33.90 8407.34.10 8407.34.21 8407.34.29 8409.91.20 8409.91.90 8410.11.20 8410.12.20 8410.13.20 8410.90.30 8411.81.20 8411.81.90 8411.82.20 8411.99.20 8415.20.90 8415.83.10 8415.90.22 8415.90.29 8421.23.20 8421.23.90 8421.31.90 8436.80.91 8437.10.91 8437.80.10 8438.20.10 8438.40.10 8438.60.10 8443.13.20 8451.80.10 8457.30.00 8458.11.10 8458.19.10 8458.91.90 8459.21.10 8459.29.10 8459.31.10 8459.39.90 8459.40.10 8459.61.10 8460.29.10 8460.90.91 8461.50.11 8461.50.91 8462.21.91 8462.29.91 8462.31.10 8462.39.10 8462.49.21 8462.91.99 8463.10.10 8463.30.10 8463.90.10 8467.11.10 8467.19.10 8467.21.10 8467.22.10 8467.29.10 8468.90.10 8477.10.10 8477.20.10 8477.51.11 8477.51.21 8477.59.11 8477.59.21 8480.20.00 8480.30.00 8480.71.10 8480.79.00 8482.10.10 8482.80.10 8483.20.00 8483.30.00 8483.40.91 8501.10.12 8501.10.99 8501.20.90 8501.31.20 8501.31.30 8501.32.20 8501.32.90 8501.33.20 8501.33.30 8501.34.20 8501.34.30 8501.40.22 8501.40.29 8501.40.39 8501.51.90 8501.52.20 8501.53.91 8501.53.99 8501.61.90 8501.62.90 8501.63.90 8501.64.91 8501.64.99 8502.11.90 8502.12.00 8502.13.00 8502.20.90 8502.40.00 8506.90.90 8507.10.00 8507.20.10 8507.30.20 8507.40.10 8507.80.20 8507.90.90 8511.10.00 8511.20.00 8511.30.00 8511.40.90 8511.50.00 8511.80.90 8511.90.90 8516.10.20 8516.80.90 8528.49.11 8528.49.19 8528.59.11 8528.59.19 8528.71.40 8528.72.34 8528.72.97 8536.70.10 8536.70.20 8536.70.30 8542.31.90 8542.32.90 8542.33.90 8542.39.90 8545.19.28 8545.19.29 8548.90.90 9001.10.90 9001.20.00 9013.10.00 9013.20.00 9013.80.90 9013.90.30 9015.90.10 9016.00.10 9016.00.90 9017.90.10 9017.90.90 9024.10.90 9024.80.90 9025.90.90 9028.10.00 9028.20.90 9028.30.00 9029.20.90 9029.90.20 9030.10.90 9030.31.10 9030.33.10 9030.84.10 9030.89.10 9031.20.90 9031.49.90 9031.80.90 9032.89.90 9033.00.90

2. That the List of Tariff Provisions set out in the schedule to the Customs Tariff be amended to provide that the Most-Favoured-Nation Tariff rates of customs duty for the tariff items set out in column 1 below be the rates of customs duty set out in column 2 below and that the Most-Favoured-Nation Tariff rates of customs duty, and where necessary the applicable preferential tariff rates of customs duty, in respect of those items set out in column 1, be gradually reduced to "Free" by no later than January 1, 2015.

Column 1	Column 2	Column 1	Column 2
2830.10.00	3%	5509.52.90	6%
2833.21.90	3%	5509.53.90	6%
2839.19.00	5%	5509.61.00	6%
2839.90.10	2,5%	5509.62.00	6%
2847.00.00	5%	5509.91.00	6%
2905.11.00	3%	5509.92.00	6%
2905.12.00	5%	5509.99.00	6%
2905.31.00	5%	5510.11.90	6%
2905.39.00	5%	5510.12.90	6%
2905.45.00	6%	5510.20.90	6%
2907.13.00	5%	5510.30.90	6%
2915.70.10	4%	5510.90.00	6%
2915.70.99	4%	5512.11.99	10%
2915.90.10	3%	5512.19.99	7%
2916.15.00	4%	5512.21.90	10%
2917.12.10	5%	5512.29.99	10%
2917.13.10	4%	5512.91.90	10%
2917.19.10	6%	5512.99.99	10%
3204.17.91	4%	5513.11.99	10%
3204.17.99	5%	5513.12.99	10%
3206.19.90	4%	5513.13.99	10%
3206.20.00	5%	5513.19.00	7%
3206.49.89	4%	5513.21.00	7%
3901.10.90	6%	5513.23.19	7%
3901.20.90	6%	5513.23.99	10%
3901.30.00	4%	5513.29.90	7%
3901.90.00	4%	5513.31.90	10%
3902.10.00	4%	5513.39.19	10%
3902.30.00	6%	5513.39.99	10%
3902.90.10	6%	5513.41.90	7%
3908.10.00	3%	5513.49.90	7%
3908.90.00	6%	5514.11.99	7%
3909.10.10	4%	5514.12.90	7%
3909.20.90	6%	5514.19.90	7%
3916.20.00	6%	5514.21.00	7%
3919.10.10	5%	5514.22.90	7%
3919.90.10	5%	5514.23.90	10%
3921.11.90	3%	5514.29.90	7%
3921.12.91	5%	5514.30.99	7%
3921.12.99	5%	5514.41.00	7%
3921.13.91	5%	5514.42.00	10%
3921.13.99	3%	5514.43.90	10%
3921.14.90	3%	5514.49.90	10%
3921.19.90	3%	5515.11.90	7%
3921.90.12	5%	5515.12.90	7%
3921.90.19	5%	5515.19.90	10%
3921.90.94	5%	5515.21.90	10%
3921.90.99	3%	5515.29.90	10%
4408.10.10	5,5%	5515.91.90	10%
4408.90.10	5,5%	5515.99.19	10%
4410.11.10	2%	5515.99.99	10%
4410.12.00	2%	5516.13.90	10%
4410.19.10	2%	5516.14.90	7%
4412.10.10	4,5%	5516.21.99	7%
4412.10.90	5,5%	5516.22.90	7%
4412.31.90	4,5%	5516.23.99	10%
4412.32.90	4,5%	5516.24.90	7%
4412.39.10	5,5%	5516.41.00	7%
4412.39.90	8,5%	5516.42.00	7%
4412.94.90	5,5%	5516.43.00	7%
4412.99.90	5,5%	5516.44.00	7%
5106.10.90	6%	5516.91.99	7%
5106.20.00	6%	5516.92.90	7%
5107.10.90	6%	5516.94.90	10%
5107.20.90	6%	5601.21.29	3%
5111.11.90	7%	5601.29.90	3%
5204.11.10	4%	5602.10.90	10%
5204.11.90	6%	5602.21.99	10%
5205.11.90	6%	5602.29.00	10%
5205.12.90	6%	5602.90.90	10%
5205.13.90	6%	5604.90.10	6%
5205.14.90	6%	5811.00.10	10%
5205.21.90	6%	5811.00.29	10%
5205.22.90	6%	5811.00.90	10%
5205.23.90	6%	5901.10.90	10%
5205.24.90	6%	5901.90.90	10%
5205.31.90	6%	5902.10.00	6%
5205.32.90	6%	5902.20.00	6%
5205.41.90	6%	5902.90.00	6%
5205.42.90	6%	5903.10.19	10%
5206.11.00	6%	5903.10.29	10%
5206.12.00	6%	5903.20.19	10%
5206.13.00	6%	5903.20.23	8%
5206.22.00	6%	5903.20.29	10%
5206.31.00	6%	5903.90.10	10%
5206.32.00	6%	5903.90.29	10%
5206.34.00	6%	5906.10.90	10%
5206.35.00	6%	5906.91.99	10%
5206.41.00	6%	5906.99.19	10%
5206.42.00	6%	5906.99.22	8%
5206.43.00	6%	5906.99.29	10%
5206.44.00	6%	5907.00.13	6%
5209.52.90	7%	5907.00.18	10%
5210.11.00	7%	5907.00.19	10%
5210.19.00	7%	5910.00.19	7%
5210.21.00	7%	5910.00.90	7%
5210.29.00	7%	5911.10.90	10%
5210.31.00	7%	5911.20.90	10%
5210.32.00	7%	5911.31.10	5%
5210.39.00	7%	5911.32.10	5%
5210.41.00	7%	5911.40.90	10%
5210.49.19	10%	5911.90.20	7%
5210.49.90	7%	5911.90.90	8%
5210.51.90	7%	6001.10.90	10%
5210.59.00	7%	6001.21.00	10%
5211.11.00	7%	6001.29.90	10%
5211.12.90	10%	6001.91.00	10%
5211.19.00	10%	6001.92.90	7%
5211.20.19	10%	6001.99.90	10%
5211.20.90	10%	6002.40.40	8%
5211.31.00	10%	6002.40.90	10%
5211.32.90	10%	6002.90.19	8%
5211.39.00	7%	6002.90.90	10%
5211.41.90	10%	6003.10.99	10%
5211.43.90	10%	6003.20.40	8%
5211.51.00	10%	6003.20.90	10%
5211.52.90	10%	6003.30.99	10%
5211.59.00	7%	6003.40.99	10%
5212.11.30	6%	6003.90.40	8%
5212.11.90	10%	6003.90.90	10%
5212.12.30	6%	6004.10.19	8%
5212.12.90	10%	6004.10.90	7%
5212.13.40	6%	6004.90.30	8%
5212.13.90	10%	6004.90.90	10%
5212.14.40	6%	6005.21.30	8%
5212.14.90	10%	6005.21.90	10%
5212.15.30	6%	6005.22.30	8%
5212.15.90	7%	6005.22.90	10%
5212.21.30	6%	6005.23.30	8%
5212.21.90	10%	6005.23.90	10%
5212.22.30	6%	6005.24.30	8%
5212.22.90	10%	6005.24.90	10%
5212.23.30	6%	6005.31.90	10%
5212.23.90	10%	6005.32.90	7%
5212.24.30	6%	6005.33.99	10%
5212.24.90	7%	6005.34.90	7%
5212.25.30	6%	6005.41.90	10%
5212.25.90	10%	6005.42.90	10%
5308.90.90	6%	6005.43.99	10%
5401.10.00	6%	6005.44.90	10%
5402.11.90	6%	6005.90.29	10%
5402.19.90	6%	6005.90.99	8%
5402.20.90	6%	6006.21.10	10%
5402.31.90	6%	6006.21.90	10%
5402.32.90	6%	6006.22.10	10%
5402.33.90	6%	6006.22.90	7%
5402.34.90	6%	6006.23.29	10%
5402.39.00	6%	6006.23.90	10%
5402.51.90	6%	6006.24.10	10%
5402.52.99	6%	6006.24.90	10%
5402.59.90	6%	6006.31.90	10%
5402.61.00	6%	6006.32.90	7%
5402.62.90	6%	6006.33.90	10%
5402.69.90	6%	6006.34.90	7%
5407.10.20	8%	6006.41.90	10%
5407.10.90	7%	6006.42.90	7%
5407.20.99	7%	6006.43.90	10%
5407.30.90	10%	6006.44.90	7%
5407.41.90	7%	6006.90.90	10%
5407.42.90	7%	6815.10.90	3%
5407.43.00	10%	7019.40.99	13%
5407.44.00	10%	7607.20.90	5,5%
5407.51.90	7%	7609.00.00	3%
5407.52.19	8%	8402.11.00	6%
5407.53.00	7%	8402.12.00	3%
5407.54.90	7%	8402.19.00	6%
5407.61.19	10%	8402.20.00	2,5%
5407.69.90	7%	8402.90.00	2,5%
5407.71.00	7%	8404.10.10	4%
5407.72.00	7%	8410.11.10	8%
5407.73.90	7%	8410.12.10	8%
5407.74.00	7%	8410.13.10	8%
5407.81.90	7%	8410.90.20	8%
5407.82.99	7%	8411.82.90	8%
5407.83.99	7%	8413.70.99	5%
5407.84.90	7%	8477.80.91	8%
5407.91.90	10%	8502.39.10	5%
5407.93.90	7%	8536.20.90	2%
5407.94.90	7%	8536.90.91	4%
5508.10.10	6%	8536.90.92	2%
5509.11.00	6%	8537.10.21	2%
5509.12.90	6%	8537.10.31	2%
5509.21.90	6%	8537.10.93	2%
5509.22.30	6%	8544.11.90	3%
5509.22.90	6%	8544.19.90	3%
5509.31.00	6%	8544.49.90	3%
5509.32.90	6%	8544.60.91	4%
5509.41.90	6%	8544.60.99	5%
5509.42.00	6%

3. That the List of Tariff Provisions set out in the schedule to the Customs Tariff be amended to add tariff item No. 1513.19.10 for goods "For use in the manufacture of animal feeds" currently classified under tariff item No. 1513.19.00 which is being revoked. The Most-Favoured-Nation Tariff rate of customs duty, and where necessary the applicable preferential tariff rates of customs duty, will be "Free" for the new tariff item.

4. That the List of Tariff Provisions set out in the schedule to the Customs Tariff be amended to add tariff item No. 1513.19.90 to maintain the current rates of customs duty on goods currently classified under tariff item No. 1513.19.00 except for those goods "For use in the manufacture of animal feeds".

5. That the List of Tariff Provisions set out in the schedule to the Customs Tariff be amended to add tariff item No. 5402.34.20 for "Multifilament single yarn, solely of polypropylene, textured, measuring 715 decitex or more but not exceeding 2,290 decitex, for use in the manufacture of woven fabrics" currently classified under tariff item No. 5402.34.90. The Most-Favoured-Nation Tariff rate of customs duty, and where necessary the applicable preferential tariff rates of customs duty, will be "Free" for the new tariff item.

6. That the List of Tariff Provisions set out in the schedule to the Customs Tariff be amended to add tariff item No. 5407.93.50 for "3-thread twill weave fabrics, of polyester filaments in the warp and viscose rayon filaments in the weft, of a weight not exceeding  100 g/m², for use in the manufacture of apparel" currently classified under tariff item No. 5407.93.90. The Most-Favoured-Nation Tariff rate of customs duty, and where necessary the applicable preferential tariff rates of customs duty, will be "Free" for the new tariff item.

7. That the List of Tariff Provisions set out in the schedule to the Customs Tariff be amended to add tariff item No. 5515.12.40 for "Plain woven fabric, from yarns of different colours, containing 70% or more by weight of polyester staple fibres in the weft, and 20% or more by weight of polyester filament yarns in the warp, of a weight not exceeding 140 g/m², for use in the manufacture of men's and boys' suit jackets, blazers or sports jackets" currently classified under tariff item No. 5515.12.90. The Most-Favoured-Nation Tariff rate of customs duty, and where necessary the applicable preferential tariff rates of customs duty, will be "Free" for the new tariff item.

8. That the List of Tariff Provisions set out in the schedule to the Customs Tariff be amended to add tariff item No. 5516.11.10 for "Solely of rayon, bleached, of a width exceeding 280 cm, having a sum of yarns per 10 cm in the warp and the weft of 1,060 or more, for use in the manufacture of bed linen, duvet covers, pillow shams, cushions and cushion covers" currently classified under tariff item No. 5516.11.00 which is being revoked. The Most-Favoured-Nation Tariff rate of customs duty, and where necessary the applicable preferential tariff rates of customs duty, will be "Free" for the new tariff item.

9. That the List of Tariff Provisions set out in the schedule to the Customs Tariff be amended to add tariff item No. 5516.11.90 to cover goods currently classified in tariff item No. 5516.11.00 except for "Solely of rayon, bleached, of a width exceeding 280 cm, having a sum of yarns per 10 cm in the warp and the weft of 1,060 or more, for use in the manufacture of bed linen, duvet covers, pillow shams, cushions and cushion covers". The Most-Favoured-Nation rate of customs duty will be "7%" for the new tariff item and this rate of customs duty, and where necessary the applicable preferential tariff rates of customs duty, will be gradually reduced to "Free" by January 1, 2013.

10. That the List of Tariff Provisions set out in the schedule to the Customs Tariff be amended to add tariff item No. 5516.12.91 for "Solely of rayon, of a width exceeding 280 cm, having a sum of yarns per 10 cm in the warp and the weft of 1,085 or more, for use in the manufacture of bed linen, duvet covers, pillow shams, cushions and cushion covers" currently classified under tariff item No. 5516.12.90 which is being revoked. The Most-Favoured-Nation Tariff rate of customs duty, and where necessary the applicable preferential tariff rates of customs duty, will be "Free" for the new tariff item.

11. That the List of Tariff Provisions set out in the schedule to the Customs Tariff be amended to add tariff item No. 5516.12.99 to cover goods currently classified under tariff item No. 5516.12.90 except for "Solely of rayon, of a width exceeding 280 cm, having a sum of yarns per 10 cm in the warp and the weft of 1,085 or more, for use in the manufacture of bed linen, duvet covers, pillow shams, cushions and cushion covers". The Most-Favoured-Nation rate of customs duty will be "10%" for the new tariff item and this rate of customs duty, and where necessary the applicable preferential tariff rates of customs duty, will be gradually reduced to "Free" by January 1, 2015.

12. That the List of Tariff Provisions set out in the schedule to the Customs Tariff be amended to add tariff item No. 5516.91.92 for "Plain weave fabric, of unbleached yarns, composed predominately of viscose rayon staple fibres, mixed mainly with horsehair, cotton and polyester staple fibres, of a weight not exceeding 225 g/m², for use in the manufacture of apparel" currently classified under tariff item No. 5516.91.99. The Most-Favoured-Nation Tariff rate of customs duty, and where necessary the applicable preferential tariff rates of customs duty, will be "Free" for the new tariff item.

13. That the List of Tariff Provisions set out in the schedule to the Customs Tariff be amended to add tariff item No. 5909.00.10 to maintain the current rates of customs duty on "Fire hoses" currently classified under tariff item No. 5909.00.00 which is being revoked.

14. That the List of Tariff Provisions set out in the schedule to the Customs Tariff be amended to add tariff item No. 5909.00.90 to cover the goods currently classified in tariff item No. 5909.00.00 except for "Fire hoses". The Most-Favoured-Nation rate of customs duty will be "10%" for the new tariff item and this rate of customs duty, and where necessary the applicable preferential tariff rates of customs duty, will be gradually reduced to "Free" by January 1, 2015.

15. That the List of Tariff Provisions set out in the schedule to the Customs Tariff be amended to add tariff item No. 6001.22.10 for "Weft knit fabrics, solely of brushed polyester fibres, of a width exceeding 175 cm, not impregnated, coated, covered or laminated, of a weight exceeding 260 g/m² but not exceeding 290 g/m², for use in the manufacture of yarn" currently classified in tariff item No. 6001.22.00 which is being revoked. The Most-Favoured-Nation Tariff rate of customs duty, and where necessary the applicable preferential tariff rates of customs duty, will be "Free" for the new tariff item.

16. That the List of Tariff Provisions set out in the schedule to the Customs Tariff be amended to add tariff item No. 6001.22.90 to cover goods currently classified in tariff item No. 6001.22.00 except for "Weft knit fabrics, solely of brushed polyester fibres, of a width exceeding 175 cm, not impregnated, coated, covered or laminated, of a weight exceeding 260 g/m² but not exceeding 290 g/m², for use in the manufacture of yarn". The a Most-Favoured-Nation rate of customs duty of will "7%" for the new tariff item and this rate of customs duty, and where necessary the applicable preferential tariff rates of customs duty, will be gradually reduced to "Free" by January 1, 2013.

17. That the List of Tariff Provisions set out in the schedule to the Customs Tariff be amended to add tariff item No. 6001.92.40 for "Warp pile fabric, cut, solely of polyester, including the ground fabric, brushed, for use in the manufacture of coffin interiors" currently classified under tariff item No. 6001.92.90. The Most-Favoured-Nation Tariff rate of customs duty, and where necessary the applicable preferential rates of customs duty, will be "Free" for the new tariff item.

18. That the Description of Goods of Tariff item No. 8477.80.91 in the List of Tariff Provisions set out in the schedule to the Customs Tariff be replaced by the following:

----For blending plastics

19. That the Description of Goods of tariff item No. 8716.90.10 in the List of Tariff Provisions set out in the schedule to the Customs Tariff be amended by replacing the reference to "Brake drums, hubs and rotors for use in the manufacture of brakes and brake assemblies mounted on axles for semi-trailers;" with a reference to "Brake drums, hubs and rotors for use in the manufacture or repair of brakes and brake assemblies mounted on axles for semi-trailers;".

20. That any enactment founded on sections 1 to 19 be deemed to have come into force on March 5, 2010.

Notice of Ways and Means Motion to Amend
the Universal Child Care Benefit Act

That it is expedient to amend the Universal Child Care Benefit Act to provide among other things that, for payments in respect of months after June 2011:

(a) section 2 of the Act be amended by adding the following definition in alphabetical order:

"shared custody parent" has the meaning assigned for the purpose of Subdivision a.1 of Division E of Part I of the Income Tax Act;

(b) subsection 4(1) of the Act be replaced by the following:

4. (1) The Minister shall pay to an eligible individual, for each month at the beginning of which he or she is an eligible individual, for each child who is a qualified dependant of the eligible individual at the beginning of that month,

(a) a benefit of $50, if the eligible individual is a shared custody parent of the qualified dependant; and

(b) a benefit of $100 in any other case.

Notice of Ways and Means Motion to amend the Income Tax Act, the Excise Tax Act, the Excise Act, 2001, the Air Travellers Security Charge Act, the Canada Pension Plan, and the Employment Insurance Act relating to Online Notices

That it is expedient to amend the Income Tax Act, the Excise Tax Act, the Excise Act, 2001, the Air Travellers Security Charge Act, the Canada Pension Plan and the Employment Insurance Act to provide among other things that the provisions of these acts relating to the issuance of online notices be modified in accordance with the proposals described in the budget documents tabled by the Minister of Finance in the House of Commons on March 4, 2010.

Notice of Ways and Means Motion to Amend
the Air Travellers Security Charge Act

That it is expedient to amend the Air Travellers Security Charge Act as follows:

  1. (1) The portion of paragraph 12(1)(a) of the Air Travellers Security Charge Act before subparagraph (i) is replaced by the following:

(a) $7.12 for each chargeable emplanement included in the service, to a maximum of $14.25, if

  (2) The portion of paragraph 12(1)(b) of the Act before subparagraph (i) is replaced by the following:

(b) $7.48 for each chargeable emplanement included in the service, to a maximum of $14.96, if

  (3) The portion of paragraph 12(1)(c) of the Act before subparagraph (i) is replaced by the following:

(c) $12.10 for each chargeable emplanement included in the service, to a maximum of $24.21, if

  (4) The portion of paragraph 12(1)(d) of the Act before subparagraph (i) is replaced by the following:

(d) $12.71 for each chargeable emplanement included in the service, to a maximum of $25.42, if

  (5) Paragraph 12(1)(e) of the Act is replaced by the following:

(e) $25.91, if the service includes transportation to a destination outside the continental zone.

  (6) The portion of paragraph 12(2)(a) of the Act before subparagraph (i) is replaced by the following:

(a) $12.10 for each chargeable emplanement by an individual on an aircraft used to transport the individual to a destination outside Canada but within the continental zone, to a maximum of $24.21, if

  (7) The portion of paragraph 12(2)(b) of the Act before subparagraph (i) is replaced by the following:

(b) $12.71 for each chargeable emplanement by an individual on an aircraft used to transport the individual to a destination outside Canada but within the continental zone, to a maximum of $25.42, if

  (8) Paragraph 12(2)(c) of the Act is replaced by the following:

(c) $25.91, if the service includes transportation to a destination outside the continental zone.

  (9) Subsections (1) to (8) apply in respect of an air transportation service that includes a chargeable emplanement on or after April 1, 2010 unless,

(a) if any consideration is paid or payable in respect of the service, all of the consideration is paid before April 1, 2010; or

(b) if no consideration is paid or payable in respect of the service, a ticket is issued before April 1, 2010.

 

Table of Contents - Previous