Income Tax Act

Marginal note:Reporting requirements

• 211.93 (1) A taxpayer shall

  • (a) if the taxpayer is a knowledge sharing taxpayer, submit in respect of each reporting period a knowledge sharing report to the Minister of Natural Resources on or before the reporting-due day for the report; and

  • (b) if the taxpayer is a corporation that is not an exempt corporation, on or before the reporting-due day for each reporting taxation year, make available to the public, in prescribed manner, a climate risk disclosure report for the year that

    • (i) describes the climate-related risks and opportunities for the corporation based on the following thematic areas:

      • (A) the corporation’s governance in respect of climate-related risks and opportunities,

      • (B) the actual and potential impacts of climate-related risks and opportunities on the corporation’s businesses, strategy and financial planning, if such information is material,

      • (C) the processes used by the corporation to identify, assess and manage climate related risks, and

      • (D) the metrics and targets used by the corporation to assess and manage relevant climate-related risks and opportunities, and

    • (ii) explains how the corporation’s governance, strategies, policies and practices contribute to achieving Canada’s

      • (A) commitments under the Paris Agreement made on December 12, 2015, and

      • (B) goal of net-zero emissions by 2050.

• Marginal note:Publication

  (2) For the purposes of subsection (1), a climate risk disclosure report is deemed to have been made public in a prescribed manner if the report includes the date it was published and is made publicly available by, or on behalf of, the corporation on the website of the corporation or a related person for a period of at least three years after the reporting-due day.

• Marginal note:Shared filing

  (3) If more than one person is required by subsection (1) to submit a knowledge sharing report in respect of a knowledge sharing CCUS project, the submission with full and accurate disclosure by any one of such persons of the report is deemed to have been made by each person to whom subsection (1) applies in respect of the report.

• Marginal note:Penalty — non-compliance with reporting requirements

  (4) Every knowledge sharing taxpayer that fails to provide the knowledge sharing report required under paragraph (1)(a) in respect of a reporting period is liable to a penalty in the amount of $2 million payable the day after the reporting-due day.

• Marginal note:Failure to disclose

  (5) Every taxpayer that fails to make available the climate risk disclosure report as required under paragraph (1)(b) in respect of a reporting taxation year is liable to a penalty in the amount that is the lesser of

  • (a) 4% of the total of all amounts, each of which is the amount of a CCUS tax credit of the corporation in respect of each taxation year that ended before the reporting-due day for the reporting taxation year, and

  • (b) $1 million.

• Marginal note:Report disclosure

  (6) The Department of Natural Resources shall publish on a website, maintained by the Government of Canada, each knowledge sharing report referred to in subsection (1) as soon as practicable after a taxpayer has submitted the report.

• Marginal note:Eligible use reporting

  (7) If a CCUS tax credit was deducted for a taxation year by a taxpayer in respect of a CCUS project that began commercial operations in the year or a prior taxation year, the actual eligible use percentage for a relevant project period in respect of the CCUS project is deemed to be nil until the taxpayer has filed in prescribed form, with each of its returns of income for taxation years that include any part of the relevant project period, a report stating

  • (a) the actual amount of carbon captured, during the calendar year ending in the taxation year, for storage or use in eligible use; and

  • (b) the total quantity of captured carbon during that calendar year that supported storage or use in both eligible use and ineligible use.