Budget Implementation Act, 2019, No. 1 (S.C. 2019, c. 29)

• Marginal note:Amounts paid in error

  (3.1) For the purposes of this Act, an amount (referred to in this subsection as the “excess amount”) is deemed to not have been deducted or withheld under subsection (1) by a person if

  • (a) the excess amount was, absent the application of this subsection, deducted or withheld by the person under subsection (1);

  • (b) the excess amount is in respect of an excess payment (referred to in this subsection as the “total excess payment”) of an individual’s salary, wages or other remuneration by the person to the individual in a particular year, that was paid as a result of a clerical, administrative or system error;

  • (c) before the end of the third year after the calendar year in which the excess amount is deducted or withheld,

    • (i) the person elects in prescribed manner to have this subsection apply in respect of the excess amount, and

    • (ii) the individual has repaid, or made an arrangement to repay, the total excess payment less the excess amount;

  • (d) an information return correcting for the total excess payment has not been issued by the person to the individual prior to the making of the election in subparagraph (c)(i); and

  • (e) any additional criteria specified by the Minister have been met.

• (e) 1/12 of the total of the amounts each of which is deemed by subsection 125.4(3), 125.5(3), 125.6(2), 127.1(1) or 127.41(3) to have been paid on account of the corporation’s tax payable under this Part for the year.

• (c) 1/4 of the total of the amounts each of which is deemed by subsection 125.4(3), 125.5(3), 125.6(2), 127.1(1) or 127.41(3) to have been paid on account of the corporation’s tax payable under this Part for the taxation year.

• (c.6) the amount, if any, by which

  • (i) the total of all amounts each of which is an amount that would be deemed by subsection 122.91(1) to have been paid on account of the person’s tax payable under this Part for the year if those amounts were calculated by reference to the information provided in the return

  exceeds

  • (ii) the total of all amounts each of which is an amount that is deemed by subsection 122.91(1) to be a payment on account of the person’s tax payable under this Part for the taxation year,

• (h) the amount, if any, by which

  • (i) the amount that would be deemed by subsection 125.6(2) to have been paid for the year by the person if that amount were calculated by reference to the information provided in the return filed for the year pursuant to that subsection

  exceeds

  • (ii) the amount that is deemed by that subsection to be paid for the year by the person.

• (ii) before sending the notice of assessment for the year, where the taxpayer is a qualified corporation (as defined in subsection 125.4(1)), an eligible production corporation (as defined in subsection 125.5(1)) or a qualifying journalism organization (as defined in subsection 125.6(1)) and an amount is deemed under subsection 125.4(3), 125.5(3) or 125.6(2) to have been paid on account of its tax payable under this Part for the year, refund all or part of any amount claimed in the return as an overpayment for the year, not exceeding the total of those amounts so deemed to have been paid, and

• (c) in the case of a registered charity, registered Canadian amateur athletic association or registered journalism organization, fails to file an information return as and when required under this Act or a regulation;

• (f) in the case of a registered Canadian amateur athletic association or registered journalism organization, accepts a gift the granting of which was expressly or implicitly conditional on the association or organization making a gift to another person, club, society, association or organization.

• Marginal note:Revocation of registration

  (2) If the Minister gives notice under subsection (1) to a registered charity, to a registered Canadian amateur athletic association or to a registered journalism organization,

  • (a) if it has applied to the Minister in writing for the revocation of its registration, the Minister shall, forthwith after the mailing of the notice, publish a copy of the notice in the Canada Gazette, and on that publication of a copy of the notice, the registration is revoked; and

• (b) in any other case, the Minister may, after the expiration of 30 days from the day of mailing of the notice, or after the expiration of such extended period from the day of mailing of the notice as the Federal Court of Appeal or a judge of that Court, on application made at any time before the determination of any appeal pursuant to subsection 172(3) from the giving of the notice, may fix or allow, publish a copy of the notice in the Canada Gazette, and on that publication of a copy of the notice, the registration is revoked.

• (c) in the case of a person described in any of subparagraphs (a)(i) to (v) and paragraph (b.1) of the definition qualified donee in subsection 149.1(1), that is or was registered by the Minister as a qualified donee or is an applicant for such registration, it objects to a notice under any of subsections (1) and 149.1(4.3) and (22).

• (a.2) confirms a proposal or decision in respect of which a notice was issued under any of subsections 149.1(4.3) and (22) and 168(1) by the Minister, to a person that is a person described in any of subparagraphs (a)(i) to (v) and paragraph (b.1) of the definition qualified donee in subsection 149.1(1) that is or was registered by the Minister as a qualified donee or is an applicant for such registration, or does not confirm or vacate that proposal or decision within 90 days after service of a notice of objection by the person under subsection 168(4) in respect of that proposal or decision,

• Marginal note:Failure to file information returns

  (6) Every registered charity, registered Canadian amateur athletic association and registered journalism organization that fails to file a return for a taxation year as and when required by subsection 149.1(14) or (14.1) is liable to a penalty equal to $500.

• Marginal note:Incorrect information

  (7) Except where subsection (8) or (9) applies, every registered charity, registered Canadian amateur athletic association and registered journalism organization that issues, in a taxation year, a receipt for a gift otherwise than in accordance with this Act and the regulations is liable for the taxation year to a penalty equal to 5% of the amount reported on the receipt as representing the amount in respect of which a taxpayer may claim a deduction under subsection 110.1(1) or a credit under subsection 118.1(3).

• Marginal note:Increased penalty for subsequent assessment

  (8) Except where subsection (9) applies, if the Minister has, less than five years before a particular time, assessed a penalty under subsection (7) or this subsection for a taxation year of a registered charity, registered Canadian amateur athletic association or registered journalism organization and, after that assessment and in a subsequent taxation year, it issues, at the particular time, a receipt for a gift otherwise than in accordance with this Act and the regulations, it is liable for the subsequent taxation year to a penalty equal to 10% of the amount reported on the receipt as representing the amount in respect of which a taxpayer may claim a deduction under subsection 110.1(1) or a credit under subsection 118.1(3).

• Marginal note:False information

  (9) If at any time a person makes or furnishes, participates in the making of or causes another person to make or furnish a statement that the person knows, or would reasonably be expected to know but for circumstances amounting to culpable conduct (as defined in subsection 163.2(1)), is a false statement (as defined in subsection 163.2(1)) on a receipt issued by, on behalf of or in the name of another person for the purposes of subsection 110.1(2) or 118.1(2), the person (or, where the person is an officer, employee, official or agent of a registered charity, registered Canadian amateur athletic association or registered journalism organization, the charity, association or organization) is liable for their taxation year that includes that time to a penalty equal to 125% of the amount reported on the receipt as representing the amount in respect of which a taxpayer may claim a deduction under subsection 110.1(1) or a credit under subsection 118.1(3).

Marginal note:Notice of suspension with assessment

• 188.2 (1) The Minister shall, with an assessment referred to in this subsection, give notice by registered mail to a registered charity, registered Canadian amateur athletic association or registered journalism organization that its authority to issue an official receipt referred to in Part XXXV of the Income Tax Regulations is suspended for one year from the day that is seven days after the day on which the notice is mailed, if the Minister has assessed the charity, association or organization for a taxation year for

• Marginal note:Suspension – failure to report

  (2.1) If a registered charity, a registered Canadian amateur athletic association or a registered journalism organization fails to report information that is required to be included in a return filed under subsection 149.1(14) or (14.1), the Minister may give notice by registered mail to the charity, association or organization that its authority to issue an official receipt referred to in Part XXXV of the Income Tax Regulations is suspended from the day that is seven days after the day on which the notice is mailed until such time as the Minister notifies the charity, association or organization that the Minister has received the required information in prescribed form.

• Marginal note:Records and books

  (2) Every qualified donee referred to in paragraphs (a) to (c) of the definition qualified donee in subsection 149.1(1) shall keep records and books of account — in the case of a qualified donee referred to in any of subparagraphs (a)(i) and (iii) and paragraphs (b), (b.1) and (c) of that definition, at an address in Canada recorded with the Minister or designated by the Minister — containing

• Marginal note:Certain qualified donees

  (3.2) An official may provide to any person the following taxpayer information relating to another person (in this subsection referred to as the “registrant”) that was at any time a registered charity, registered Canadian amateur athletic association or registered journalism organization:

• (f) financial statements required to be filed with an information return referred to in subsection 149.1(14) or (14.1);

• Marginal note:Information may be communicated

  (3.4) The Minister may communicate or otherwise make available to the public, in any manner that the Minister considers appropriate, the following taxpayer information:

  • (a) the names of each organization with respect to which an individual can be entitled to a deduction under subsection 118.02(2); and

  • (b) the start and, if applicable, end of the period in which paragraph (a) applies in respect of any particular organization.

• (xvi.1) to a person employed or engaged in the service of an office or agency, of the Government of Canada or of a province, whose mandate includes the provision of assistance (as defined in subsection 125.6(1)) in respect of qualified Canadian journalism organizations, solely for the purpose of the administration or enforcement of the program under which the assistance is offered,

• (xvi.2) to a body referred to in paragraph (b) of the definition qualified Canadian journalism organization in subsection 248(1), solely for the purpose of determining eligibility for designation under that paragraph,

passenger vehicle

passenger vehicle means an automobile

• (a) acquired after June 17, 1987, other than an automobile that is acquired after that date pursuant to an obligation in writing entered into before June 18, 1987 or that is a zero-emission vehicle, or

• (b) leased under a lease entered into, extended or renewed after June 17, 1987; (voiture de tourisme)

qualified Canadian journalism organization

qualified Canadian journalism organization, at any time, means a corporation, partnership or trust that

• (a) meets the following conditions:

  • (i) in the case of a corporation,

    • (A) it is incorporated under the laws of Canada or a province,

    • (B) the chairperson or other presiding officer, and at least 3/4 of the directors or other similar officers, are citizens of Canada, and

    • (C) it is resident in Canada,

  • (ii) in the case of a partnership,

    • (A) it is formed under the laws of a province, and

    • (B) individuals who are citizens of Canada or persons, or partnerships, described in any of subparagraphs (i) to (iii) hold interests in the partnership

      • (I) representing in value at least 75% of the total value of the partnership property, and

      • (II) that result in at least 75% of each income or loss of the partnership from any source being included in the determination of their incomes,

  • (iii) in the case of a trust,

    • (A) it is formed under the laws of a province,

    • (B) it is resident in Canada, and

    • (C) if interests as a beneficiary under the trust are held by one or more persons or partnerships, at least 75% of the fair market value of all interests as a beneficiary under the trust are held by

      • (I) individuals who are citizens of Canada, or

      • (II) persons or partnerships described in any of subparagraphs (i) to (iii),

  • (iv) it operates in Canada, including that its content is edited, designed and, except in the case of digital content, published in Canada,

  • (v) it is primarily engaged in the production of original news content, which

    • (A) must be primarily focused on matters of general interest and reports of current events, including coverage of democratic institutions and processes, and

    • (B) must not be primarily focused on a particular topic such as industry-specific news, sports, recreation, arts, lifestyle or entertainment,

  • (vi) it regularly employs two or more journalists who deal at arm’s length with the organization in the production of its content,

  • (vii) it is not significantly engaged in the production of content

    • (A) to promote the interests, or report on the activities, of an organization, an association or its members,

    • (B) for a government, Crown corporation or government agency, or

    • (C) to promote goods or services, and

  • (viii) it is not a Crown corporation, municipal corporation or government agency, and

• (b) is designated at that time by the Minister and, for this purpose, the Minister shall take into account any recommendations of a body established for the purpose of this definition; (organisation journalistique canadienne qualifiée)

registered journalism organization

registered journalism organization means a qualifying journalism organization (as defined in subsection 149.1(1)) that has applied to the Minister in prescribed form for registration, that has been registered and whose registration has not been revoked; (organisation journalistique enregistrée)

zero-emission passenger vehicle

zero-emission passenger vehicle, of a taxpayer, means an automobile of the taxpayer that is included in Class 54 of Schedule II to the Income Tax Regulations; (voiture de tourisme zéro émission)

zero-emission vehicle

zero-emission vehicle, of a taxpayer, means a motor vehicle that

• (a) is a plug-in hybrid that meets prescribed conditions or is fully

  • (i) electric, or

  • (ii) powered by hydrogen,

• (b) is acquired, and becomes available for use, by the taxpayer after March 18, 2019 and before 2028, and

• (c) is not a vehicle

  • (i) that has been used, or acquired for use, for any purpose before it was acquired by the taxpayer, or

  • (ii) in respect of which

    • (A) the taxpayer has, at any time, made an election under subsection 1103(2j) of the Income Tax Regulations,

    • (B) assistance has been paid by the Government of Canada under a prescribed program, or

    • (C) an amount has been deducted under paragraph 20(1)(a) or subsection 20(16) by another person or partnership. (véhicule zéro émission)

• Marginal note:Application of subsection (16) to certain vehicles and aircraft

  (17) If the input tax credit of a taxpayer under Part IX of the Excise Tax Act in respect of a passenger vehicle, zero-emission passenger vehicle or aircraft is determined with reference to subsection 202(4) of that Act, subparagraphs (16)(a)(i) to (iii) are to be read as they apply in respect of the vehicle or aircraft, as the case may be, as follows:

  • (i) at the beginning of the first taxation year or fiscal period of the taxpayer commencing after the end of the taxation year or fiscal period, as the case may be, in which the goods and services tax in respect of such property was considered for the purposes of determining the input tax credit to be payable, if the tax was considered for the purposes of determining the input tax credit to have become payable in the reporting period, or

  • (ii) if no such tax was considered for the purposes of determining the input tax credit to have become payable in the reporting period, at the end of the reporting period; or

• Marginal note:Application of subsection (16.1) to certain vehicles and aircraft

  (17.1) If the input tax refund of a taxpayer under An Act respecting the Québec sales tax, R.S.Q., c. T-0.1, in respect of a passenger vehicle, zero-emission passenger vehicle or aircraft is determined with reference to section 252 of that Act, subparagraphs (16.1)(a)(i) to (iii) are to be read as they apply in respect of the vehicle or aircraft, as the case may be, as follows:

  • (i) at the beginning of the first taxation year or fiscal period of the taxpayer that begins after the end of the taxation year or fiscal period, as the case may be, in which the Quebec sales tax in respect of such property was considered for the purposes of determining the input tax refund to be payable, if the tax was considered for the purposes of determining the input tax refund to have become payable in the reporting period, or

  • (ii) if no such tax was considered for the purposes of determining the input tax refund to have become payable in the reporting period, at the end of the reporting period; or