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COVID-19 Emergency Response Act, No. 2 (S.C. 2020, c. 6)

Assented to 2020-04-11

PART 1R.S., c. 1 (5th Supp.)Income Tax Act (continued)

Amendments to the Act (continued)

 Paragraph 152(1)(b) of the Act is replaced by the following:

  • (b) the amount of tax, if any, deemed by subsection 120(2) or (2.2), 122.5(3) or (3.001), 122.51(2), 122.7(2) or (3), 122.8(4), 122.9(2), 122.91(1), 125.4(3), 125.5(3), 125.6(2), 125.7(2), 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year.

  •  (1) Subsection 163(2) of the Act is amended by striking out “and” at the end of paragraph (g), by adding “and” at the end of paragraph (h) and by adding the following after paragraph (h):

    • (i) the amount, if any, by which

      • (i) the amount that would be deemed by subsection 125.7(2) to have been an overpayment by the person or partnership if that amount were calculated by reference to the information provided in the application filed pursuant to section 125.7

      exceeds

      • (ii) the amount that is deemed by that subsection to be an overpayment by the person or partnership.

  • (2) Subsection 163(2.9) of the Act is replaced by the following:

    • Marginal note:Partnership liable to penalty

      (2.9) If a partnership is liable to a penalty under paragraph (2)(i), subsection (2.4) or (2.901) or section 163.2, 237.1 or 237.3, sections 152, 158 to 160.1, 161 and 164 to 167 and Division J apply, with any changes that the circumstances require, in respect of the penalty as if the partnership were a corporation.

    • Marginal note:Penalty — COVID-19

      (2.901) Every eligible entity that is deemed by subsection 125.7(6) to have an amount of qualifying revenue — for a current reference period for a qualifying period — is liable to a penalty equal to 25% of the amount that would be deemed by subsection 125.7(2) to have been an overpayment by the eligible entity during that qualifying period if that amount were calculated by reference to the information provided in the application filed pursuant to paragraph (a) of the definition qualifying entity in subsection 125.7(1).

  •  (1) Section 164 of the Act is amended by adding the following after subsection (1.53):

    • Marginal note:COVID-19 refunds

      (1.6) Notwithstanding subsection (2.01), at any time after the beginning of a taxation year of a taxpayer in which an overpayment is deemed to have arisen under subsection 125.7(2), the Minister may refund to the taxpayer all or any part of the overpayment.

    • Marginal note:COVID-19 refunds — partnerships

      (1.61) For the purposes of subsection (1.6), references to a taxpayer include a partnership and the reference to a taxation year includes a fiscal period.

  • (2) The portion of subsection 164(3) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Interest on refunds and repayments

      (3) If, under this section, an amount in respect of a taxation year (other than an amount, or a portion of the amount, that can reasonably be considered to arise from the operation of section 122.5, 122.61 or 125.7) is refunded or repaid to a taxpayer or applied to another liability of the taxpayer, the Minister shall pay or apply interest on it at the prescribed rate for the period that begins on the day that is the latest of the days referred to in the following paragraphs and that ends on the day on which the amount is refunded, repaid or applied:

  •  (1) Section 241 of the Act is amended by adding the following after subsection (3.4):

    • Marginal note:Information may be communicated

      (3.5) The Minister may communicate or otherwise make available to the public, in any manner that the Minister considers appropriate, the name of any person or partnership that makes an application under section 125.7.

  • (2) Paragraph 241(4)(d) of the Act is amended by adding the following after subparagraph (vii.5):

Payments out of Consolidated Revenue Fund

Marginal note:Consolidated Revenue Fund

 For the purpose of subsection 164(1.6) of the Income Tax Act, the Minister of National Revenue may make payments to a person or partnership out of the Consolidated Revenue Fund, at the times and in the manner that the Minister considers appropriate.

PART 2R.S., c. F-11Financial Administration Act

Amendments to the Act

  •  (1) Subsections 60.2(2) to (2.3) of the Financial Administration Act are replaced by the following:

    • Marginal note:Contracts

      (2) Subject to subsection (3), the Minister may, with the Governor in Council’s authorization, enter into, on behalf of Her Majesty in right of Canada, any contract that in the Minister’s opinion is necessary to promote the stability or maintain the efficiency of the financial system in Canada, including such a contract to

      • (a) purchase, acquire, hold, lend or sell or otherwise dispose of securities of an entity;

      • (b) create a charge on, or right or interest in, securities of an entity held by the Minister;

      • (c) make a loan to an entity;

      • (d) provide a line of credit to an entity;

      • (e) guarantee any debt, obligation or financial asset of an entity; or

      • (f) provide loan insurance or credit insurance for the benefit of an entity in respect of any debt, obligation or financial asset of the entity.

  • (2) The portion of subsection 60.2(3) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Non-application to certain entities

      (3) Paragraph (2)(a) does not apply to

  • (3) Subsections 60.2(4) to (6) of the Act are replaced by the following:

    • Marginal note:Section 90 does not apply

      (4) Section 90 does not apply if the Minister purchases, acquires or sells or otherwise disposes, under paragraph (2)(a), of shares within the meaning of that section.

    • Marginal note:Section 61 and Surplus Crown Assets Act do not apply

      (5) Section 61 and the Surplus Crown Assets Act do not apply if the Minister holds, loans or sells or otherwise disposes of securities under paragraph (2)(a).

    • Marginal note:Payments out of C.R.F.

      (6) Any amount payable under or in connection with a contract entered into under this section may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister, at the times and in the manner that the Minister considers appropriate.

 Subsection 60.3(1) of the Act is replaced by the following:

Marginal note:Incorporation

  • 60.3 (1) If, in the Minister’s opinion, it is necessary to promote the stability or maintain the efficiency of the financial system in Canada, the Minister may, during the period beginning on the day on which this subsection comes into force and ending on September 30, 2020, with the Governor in Council’s authorization, procure the incorporation of a corporation, all of the shares of which are held by the Minister on behalf of Her Majesty in right of Canada.

 Subsection 60.4(1) of the Act is replaced by the following:

Marginal note:Entity other than corporation

  • 60.4 (1) If, in the Minister’s opinion, it is necessary to promote the stability or maintain the efficiency of the financial system in Canada, the Minister may, during the period beginning on the day on which this subsection comes into force and ending on September 30, 2020, with the Governor in Council’s authorization, establish an entity, other than a corporation, on any terms and conditions that the Minister considers appropriate.

R.S., c. C-3Consequential Amendment to the Canada Deposit Insurance Corporation Act

 The portion of subsection 10.1(3) of the Canada Deposit Insurance Corporation Act before paragraph (a) is replaced by the following:

  • Marginal note:Total indebtedness

    (3) The total principal indebtedness outstanding at any time in respect of borrowings by the Corporation under subsections (1) and (2), excluding the borrowings under paragraph 60.2(2)(c) of the Financial Administration Act and under subparagraph 60.2(2)(a)(iii) of that Act as it read on September 30, 2020, shall not exceed

 
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