On April 26, 2012 the Minister of Finance, Jim Flaherty,
introduced the budget implementation legislation, Bill
C-38—the Jobs, Growth and Long-term Prosperity
Act—which provides for significant
amendments to federal legislation in line with the objectives set
out in the government's 2012 Budget Plan.
In addition to the government's budget implementation
measures, Bill C-38 includes proposed changes to the Investment Canada
Act designed to increase transparency in the
foreign investment review process while preserving commercial
confidentiality for investors supplying information under the Act.
The proposed amendments will also authorize the Minister of
Industry to accept security for payment of any penalties ordered by
a court as a result of any contravention of the Act, including
breach of undertakings given by a foreign investor to secure
approval of investments under the Act.
The following includes a summary of the key amendments as they
relate to specific sections of the Act:
Section 19 will be amended to
allow the government to accept security in respect of any future
failure by a foreign investor to abide by undertakings made
pursuant to the Act. Such a contravention currently carries a
maximum penalty of $ 10,000 per day of contravention.
Information relating to the Minister's acceptance of a
security provided under the proposed amendment to section 19 of the
Information in any notice sent to an investor approving an
investment as being of net benefit to Canada;
Information in a notice and in reasons provided to an investor
under section 23(1) of the Act indicating that the Minister is not
satisfied that an investment will be of net benefit to Canada (such
satisfaction on the Minister's part being necessary for
implementation of a reviewable transaction under the Act), and
giving an investor 30 days to make representations and submit
undertakings in that regard.
Proposed Subsection 36(4.1) will include a
provision requiring the Minister to inform investors before
communicating any information permitted to be disclosed under
subsection 36(4), and preventing such disclosure if they satisfy
the Minister, without delay, that the communication or disclosure
would prejudice them.
The practical effect of the transparency amendments is that the
Minister will have the ability to publicly disclose the information
contained in any notice sent to investors indicating: (i) that the
Minister is (or is not) satisfied that an investment will be of net
benefit to Canada; (ii) the reasons provided to an investor
explaining why the Minister is not satisfied that an investment
will be of net benefit to Canada; and (iii) information relating to
the Minister's acceptance of a security provided under the
proposed amendment to section 19 of the Act.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
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