Part 2, Volume 157 #11
Highlights
- The Canadian government has increased the interest-free loan limit under the Advance Payments Program to $350,000 for agricultural producers to help manage increased production costs.
- Amendments to the Canada Pension Plan clarify benefit calculations and eligibility for the Post-Retirement Disability Benefit and for those using child-rearing and disability drop-ins.
- The Canada Business Corporations Act now requires corporations to maintain a clearer register of individuals with significant control to improve transparency and combat illegal activities.
- Chicken Farmers of Canada has set new production quotas for chicken for a specified period in 2023.
- Victoria Day is officially designated as the day to celebrate the reigning monarch’s birthday in Canada.
- New substances have been added to the Domestic Substances List under the Canadian Environmental Protection Act, 1999, after assessment and are no longer subject to notification regulations.
- The first Friday in June is declared as a National Day Against Gun Violence in Canada to raise awareness and promote collaborative efforts to reduce gun violence.
Canada Increases Interest-Free Loan Limit for Agricultural Producers to $350,000
The Canadian government has amended the Agricultural Marketing Programs Regulations to temporarily increase the interest-free loan limit under the Advance Payments Program (APP) to $350,000 for eligible agricultural producers for the 2023 program year, while maintaining the overall loan limit at $1 million. This change is in response to Canadian producers facing increased production costs due to inflation, higher input costs from global events, supply chain disruptions, and rising interest rates. The cost of agricultural production in Canada has risen by nearly 30% over the past three years.
The APP provides low and no-interest cash advances to agricultural producers, allowing them to manage cash flow and market their commodities more effectively. The program is administered by industry associations that can offer competitive interest rates due to federal guarantees. The increase in the interest-free loan limit aims to reduce the financial burden on producers and improve their access to cash flow to manage high input costs until they can sell their commodities.
The amendment is expected to result in incremental government costs of $11.8 million for the 2023 program year, with benefits to producers in the form of interest savings on advances between $250,000 and $350,000. The program change is anticipated to assist approximately 3,450 participants with additional interest savings. However, there is a risk that industry associations administering the program may incur losses in interest revenue due to the increased interest-free portion of the loans, potentially leading to increased fees for producers to cover program delivery costs.
The initiative supports the government’s commitment to helping Canadian farmers during financial pressures and ensuring Canada’s contribution to global food supplies. The amendment does not require further environmental analysis and complies with gender and diversity considerations. The changes will be implemented for the 2023 program year, with the government covering the interest on the increased amounts once the amendment comes into force. [Source]
Canada Pension Plan Amendments Clarify Post-Retirement Disability and Child-Rearing Benefits
The Canadian government has enacted an order to bring into force amendments to the Canada Pension Plan (CPP) as outlined in the Budget Implementation Act, 2022, No. 1. These amendments are designed to ensure accurate calculation of benefits and eligibility for the Post-Retirement Disability Benefit and for individuals using child-rearing and disability drop-ins.
The Post-Retirement Disability Benefit is aimed at individuals who retire before age 65 and then become disabled, preventing them from qualifying for a disability pension. The amendments clarify the start and end dates for the Minimum Qualifying Period, aligning it with the disability pension’s requirements and avoiding potential misinterpretations.
For the CPP enhancement, disability drop-ins are adjusted to reflect pensionable earnings on a monthly basis, including the month when a disability begins and prorating the Year’s Maximum Pensionable Earnings (YMPE) for the year a contributor turns 18.
Similarly, child-rearing drop-ins are adjusted to ensure accurate calculation of benefits for primary caregivers of children under seven, with a prorated YMPE for the year the caregiver turns 18.
These technical amendments do not alter the financial position of the CPP, as they do not change the original policy intent regarding eligibility or benefit amounts. The implementation of these changes will not pose issues from administrative or information technology perspectives.
The amendments required formal consent from at least two-thirds of Canadian provinces, representing at least two-thirds of the population, which has been obtained. The changes will ensure consistent application of benefits and align with the original policy intent. [Source]
Canada Enhances Corporate Transparency with Amendments to ISC Register Requirements
The Canadian government has amended the Canada Business Corporations Act (CBCA) to provide clearer guidance for private federally incorporated corporations on maintaining a register of individuals with significant control (ISC Register). The amendments specify reasonable steps corporations must take to update their ISC Register, including sending information requests to shareholders and others who might have relevant knowledge about individuals with significant control over the corporation.
Certain classes of corporations are exempt from maintaining an ISC Register, such as wholly-owned subsidiaries of reporting issuers or those listed on a designated stock exchange, federal and provincial Crown corporations, and their wholly-owned subsidiaries. If a corporation cannot identify any individuals with significant control, it must note this in the ISC Register along with a summary of the steps taken to identify such individuals.
The amendments aim to ensure consistent application of the ISC Register requirements, improve corporate transparency, and help law enforcement agencies combat illegal activities like money laundering and tax evasion. The changes are expected to reduce administrative burdens and costs for exempt corporations, while providing clear directions for all corporations to maintain accurate ISC Registers. The regulations come into force on the day they are registered, and the government will provide a model template and information on its website to assist corporations in compliance. [Source]
New Production Quotas for Canadian Chicken Farmers Set for Mid-2023
Chicken Farmers of Canada (CFC) has amended the Canadian Chicken Marketing Quota Regulations, setting new limits for the production and marketing of chicken for the period beginning on June 4, 2023, and ending on July 29, 2023. The amendments specify the production quotas for each province in three categories: production subject to federal and provincial quotas, production subject to federal and provincial market development quotas, and production subject to federal and provincial specialty chicken quotas. The total production across all provinces for this period is set at 294,993,479 kg for federal and provincial quotas, 6,967,127 kg for market development quotas, and 2,317,834 kg for specialty chicken quotas. These changes are made under the authority of the Farm Products Agencies Act and are approved by the National Farm Products Council. The new regulations will come into force on June 4, 2023. [Source]
Designation of Victoria Day as Canada’s Official Monarch’s Birthday Celebration
The Proclamation SI/2023-15 officially designates Victoria Day as the day to celebrate the birthday of the reigning monarch in Canada. Victoria Day is a public holiday that has been historically observed in Canada to honor Queen Victoria’s birthday. Following tradition, the current sovereign’s birthday is also celebrated on this day, despite the actual birth date. The proclamation ensures the continued recognition and celebration of the sovereign’s birthday within Canada, maintaining a link to the country’s historical and cultural heritage associated with the monarchy. [Source]
Canada Expands Domestic Substances List with New Chemicals
The Minister of the Environment has approved the addition of new substances to the Domestic Substances List (DSL) under the Canadian Environmental Protection Act, 1999, following the provision of required information by manufacturers or importers and the expiration of the assessment period. The substances have been manufactured or imported in Canada in quantities beyond those prescribed by the New Substances Notification Regulations (Chemicals and Polymers). No restrictions are currently in place for these substances. The amendments include adding several chemical substances to Part 1 of the DSL in numerical order and a few others to Part 3, which are described by their chemical names and categorized by their type of use or properties. The Order comes into effect on the day it is registered. [Source]
Canada Expands Domestic Substances List with New Chemicals and Organisms
The Canadian Minister of the Environment has approved the addition of 18 new substances (14 chemicals and polymers, and 4 living organisms) to the Domestic Substances List (DSL) under the Canadian Environmental Protection Act, 1999 (CEPA). These substances have been assessed and are no longer subject to the New Substances Notification Regulations. The DSL is an inventory of substances that are legally recognized as being present in Canada’s marketplace or environment.
The addition of substances to the DSL is a routine process that occurs when a substance has been manufactured or imported into Canada in a significant quantity, has been assessed for environmental and human health risks, and is not subject to any restrictions. The update to the DSL includes specific living organisms like human T lymphocytes modified with a lentiviral vector and a recombinant non-replicating adeno-associated virus, among others.
The amendment to the DSL is administrative and does not impose any new regulatory burdens on businesses. It is intended to facilitate access to these substances for businesses by removing the requirement for them to be subject to new substance notifications. The orders for amendment are consistent with Canada’s international obligations and do not have any identified impacts on modern treaty obligations, small businesses, or gender-based analysis plus (GBA+). Compliance with the orders will be enforced in line with CEPA’s compliance and enforcement policy. Concerns or questions about compliance can be directed to the Substances Management Information Line. [Source]
Canada Establishes National Day Against Gun Violence
The Government of Canada has declared the first Friday in June of every year as a National Day Against Gun Violence. This proclamation acknowledges the public’s concern over gun violence and its harmful effects on victims, families, and communities. It emphasizes the need for increased awareness of firearm laws and the factors contributing to gun violence. The proclamation calls for collaborative efforts with victims, families, community members, and governments to combat this issue. All Canadian citizens are encouraged to observe this day and act accordingly. The proclamation was made official with the Great Seal of Canada, signifying its importance and the government’s commitment to addressing gun violence. [Source]