Vol. 143, No. 46 — November 14, 2009

Regulations Amending Certain Department of Human Resources and Skills Development Regulations

Statutory authority

Canada Pension Plan and Old Age Security Act

Sponsoring department

Department of Human Resources and Skills Development

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issue and objectives

The amendments to the Canada Pension Plan Regulations and the Old Age Security Regulations fall into two categories:

1. Regulatory amendments required for carrying into effect provisions contained in An Act to amend the Canada Pension Plan and the Old Age SecurityAct, chapter 11 of the Statutes of Canada, 2007 (Bill C-36).

The objectives of these regulatory proposals relate to

(a) complying with the Financial Administration Act (FAA) concerning the provisions related to charging of interest on Crown debts while harmonizing with provisions adopted under the Employment Insurance (EI) Program with respect to misrepresentation. The charging of interest would contribute to the integrity of the Canada Pension Plan (CPP) and Old Age Security (OAS) programs through abuse deterrence;

(b) providing flexibility to share information with a third party to ensure full understanding when literacy or comprehension may present a challenge to the senior/contributor or to assist in some care-giving scenarios. These amendments would prescribe the conditions whereby information with respect to an individual can be released to third parties upon written request; and

(c) updating wording related to the CPP statement of contributions.

2. Regulatory amendments that are both administrative and housekeeping in nature, including proposals made by the Standing Joint Committee for the Scrutiny of Regulations.

The objectives of these regulatory proposals relate to

(a) facilitating the sharing of information with Statistics Canada and Library and Archives Canada;

(b) updating wording and references where appropriate;

(c) improving processes before the Review Tribunal (RT) and the Pension Appeals Board (PAB); and

(d) taking into account proposals made by the Standing Joint Committee for the Scrutiny of Regulations.

Description and rationale

1. Regulatory proposals resulting from Bill C-36

The proposed amendments would

(a) charge interest on debts under the CPP and OAS programs resulting from misrepresentation and administrative penalties imposed under either Act;

(b) prescribe the conditions whereby information with respect to an individual can be released to third parties upon written request; and

(c) clarify wording related to the CPP statement of contributions.

Charging interest in cases of debts subject to a penalty

The most important regulatory amendment resulting from Bill C-36 relates to interest and responds to observations made by the Auditor General in its November 2006 Report on the OAS program. That Report observed that (the former) Human Resources and Social Development Canada and Service Canada should take steps to comply with the requirements of the FAA concerning the charging of interest on outstanding overpayments. The FAA requires that interest be charged on all debts due to Her Majesty, unless otherwise provided by any other Act or Regulation. With the passage of Bill C-36, the Department exempted both the OAS and CPP programs from the FAA’s general interest requirements, and provided the authority to make regulations setting out appropriate terms and conditions for the payment of interest under these programs. This proposal is similar to the approach adopted under the EI Program, an important consideration given that Service Canada administers all three programs.

Bill C-36 authorizes the Governor in Council to make regulations respecting the payment of interest on certain amounts owing to Her Majesty under Part II of the CPP and the Old Age Security Act (OAS Act). The characteristics of the proposed CPP and OAS interest provisions of the Regulations are as follows:

• Interest would only be charged on overpayments that are subject to an administrative penalty due to misrepresentations knowingly made;
• In the case of overpayments that are not subject to an administrative penalty, no interest would be charged;
• Interest would not be charged on debts that arise from a departmental error in the payment of a benefit;
• Interest would not be charged while the decision that gave rise to the debt is under appeal or other review;
• Interest would start 120 days after the misrepresentation account has been established in the department accounts receivable system and a demand for payment has been issued;
• Interest would be charged at the Bank of Canada average rate plus 3% and it would be calculated daily and compounded monthly. (This rate is aligned with the Employment InsuranceRegulations and the Interest and Administrative Charges Regulations under the FAA);
• The Department would also be authorized to reduce or remit the amount of interest where

(i) the administration costs of the collection of interest would exceed the amount of the interest owing,

(ii) the interest cannot be collected in the reasonably foreseeable future, and

(iii) the accrual of interest on a particular penalty or amount of indebtedness would result in undue hardship to the debtor;

• Interest charges would cease in the following situations:

(i) with the repayment of the debt,

(ii) upon the death of the debtor,

(iii) if the amount of the debt has been remitted, and

(iv) if the individual has started reimbursing the debt and is adhering to a payment schedule.

Information sharing to third parties

This proposal prescribes conditions whereby information may be released to a third party upon the written consent of the client. This amendment is designed to assist a senior or contributor who may be entitled to, or in receipt of, benefits whereby flexibility would be useful in some care-giving scenarios and in instances where literacy or comprehension may present a challenge to the senior or contributor.

Clarifying wording related to the CPP Statement of Contributions

The proposed amendment repeals a minor provision relating to the online statement of contributions, as it is no longer required.

2. Administrative and housekeeping regulatory amendments including proposals made by the Standing Joint Committee for the Scrutiny of Regulations

Information sharing with Library and Archives Canada and Statistics Canada

(a) The proposed amendments to the CPP and OAS Regulations would also provide authority for Human Resources and Skills Development Canada (HRSDC) to share information with Statistics Canada under tightly controlled conditions for research or statistical purposes. Library and Archives Canada maintain some CPP and OAS client files for their archival or historical value. As a result, it is necessary to prescribe the Library and Archives of Canada Act in the CPP and OAS Regulations. The amendments to the CPP and OAS Regulations would also ensure consistency, where relevant, with similar provisions under the Department of Human Resources and Skills Development Regulations as well as the Department of Social Development Regulations.

At the time of drafting the Department of Human Resources and Skills Development Act and the Department of Social Development Act, the Office of the Privacy Commissioner was duly consulted. It was at the Commissioner’s request that the Departments agreed to specify in the departmental regulations the federal institutions with which to disclose personal information for the purpose of administering the other institution’s laws.

Updating wording and cross-references

(b) The proposal would add cross-references where relevant to the penalty provisions, replace the word “impairment” with the word “disability”, and amend one CPP Regulations to include a reference to “common-law partner”.

Review Tribunal Rules of Procedure and the Pension Appeals Board Rules of Procedure (Benefits)

In order to improve processes before the Review Tribunal (RT) and the Pension Appeals Board (PAB) and to promote greater efficiency and transparency before these quasi-judicial bodies, minor administrative amendments are proposed to streamline the Review Tribunal Rules of Procedure (RT Rules of Procedure) and the Pension Appeals Board Rules of Procedure (Benefits). The amendments to the RT Rules of Procedure and PAB Rules of Procedure (Benefits) extend from 7 days to 10 days the time allowed to provide a notice of constitutional question to ensure consistency with the Federal Courts Act. The proposed amendments also replace Latin expressions, where possible, in the Schedules to modernize the wording.

The proposed amendments to the RT Rules of Procedure would incorporate certain procedural aspects requiring that evidence be given by a witness under oath and remove the requirement that witnesses always be excluded during the hearing. With respect to evidence given under oath, this proposal would mirror a current provision in the PAB Rules of Procedure (Benefits). The change would align with administrative law principles. Currently, evidence provided at the RT, and raised before the PAB, can have less weight as witnesses before the RT do not testify under oath. While proceedings before the RT are to be as informal as possible, the issues are becoming more complex and, as a result, it would be prudent to have witnesses testify under oath before the RT as they do before the PAB. The proposal would remove the rule that exclude witnesses during the hearing of an appeal at the RT. Like other administrative tribunals, the RT would have the discretion to exclude witnesses in appropriate circumstances at the request of a party or on their own motion. The Office of the Commissioner of Review Tribunals and the Pension Appeals Board have been consulted and agree with the proposed amendments to the Rules of Procedure.

Standing Joint Committee for the Scrutiny of Regulations (SJCSR)

Two CPP regulations (subsection 72(2) and section 73) would be amended in response to non-contentious concerns raised by the SJCSR to clarify wording used in the Regulations or to correct an inconsistency between the English and French versions. The proposed amendments are housekeeping in nature and have no policy implications.

With respect to the issue of benefits and costs, the proposed Regulations are in keeping with the general government policy that interest must be charged on outstanding debts to the Crown (a policy that applies to all government departments). The proposed Regulations stipulate that the CPP and OAS programs would charge interest solely on misrepresentation debts and on administrative penalties. Presently, the penalty provisions under each program are not in force. In 2008, Service Canada undertook a regional sample study of CPP and OAS investigations. The results of this study were used as the basis for a national projection. Extrapolated over a 12-month period, Service Canada identified that on an annual basis, approximately 188 cases nationally would have been subject to a penalty were these provisions in force. This represents about 30% of cases under investigation annually.

Based on the estimated overpayments and penalties from the sample study cases, it was estimated that the total interest charged would have been approximately $470,000 (approximately $396,000 for CPP and $74,000 for OAS), had these amounts been subject to interest. This amount represents a fraction of the total amount the CPP and OAS programs pay in benefits.

Consultation

Bill C-36, which gives rise to some of these amendments including the interest provisions, was debated in the House of Commons and Senate and received Royal Assent on May 3, 2007. Where appropriate, consultation took place with the Office of the Privacy Commissioner, the Office of the Commissioner of Review Tribunals and the Pension Appeals Board. Both the CPP and OAS Act are benefits-conferring legislation. The proposed amendments to the CPP and OAS Regulations are required to give effect to the Acts. No additional special consultations are necessary, since benefit entitlements are not being changed and the changes are largely administrative in nature.

Implementation, enforcement and service standards

Benefit control mechanisms, such as system edits and controls, manual file reviews and risk mitigation initiatives, are used to ensure that eligibility criteria are met. Program, policy and procedural material will be developed or updated to ensure uniformity in the administration of the CPP and OAS Regulations by departmental and Service Canada staff.

Contacts

Kevin Wagdin
Manager, Litigation and Legislation
Old Age Security Policy Directorate
Income Security Social Development Branch
Human Resources and Skills Development Canada
Place Vanier, Tower B, 18th Floor
355 North River Road
Ottawa, Ontario
K1A 0L1
Telephone: 613-948-5334
Fax: 613-991-9119
Email: kevin.wagdin@hrsdc-rhdsc.gc.ca

Suzanne Gagnon
Senior Legislation Officer
Canada Pension Plan Policy Directorate
Income Security Social Development Branch
Human Resources and Skills Development Canada
Place Vanier, Tower B, 18th Floor
355 North River Road
Ottawa, Ontario
K1A 0L1
Telephone: 613-957-1640
Fax: 613-991-9119
Email: suzanne.l.gagnon@hrsdc-rhdsc.gc.ca

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council proposes to make the annexed Regulations Amending Certain Department of Human Resources and Skills Development Regulations, pursuant to

(a) the definition “family allowance recipient” in subsection 42(1), subsection 70.1(2) (see footnote a), paragraphs 89(1)(a) to (d) (see footnote b), subsections 89(2) (see footnote c) and 96(1) (see footnote d), paragraph 101(1)(d.1) (see footnote e) and subsections 104.01(3) (see footnote f) and 104.03(2.1) (see footnote g) of the Canada Pension Plan (see footnote h); and

(b) subsections 33.01(2) (see footnote i) and (3) (see footnote j) and 33.03(2.1) (see footnote k), paragraph 34(q) (see footnote l) and section 34.2 (see footnote m) of the Old Age Security Act (see footnote n).

Interested persons may make representations concerning the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Suzanne Gagnon, Senior Legislation Officer, Seniors and Pensions Policy Secretariat, Department of Human Resources and Skills Development, 355 North River Road, Ottawa, Ontario K1A 0L1 (tel.: 613-957-1640; facsimile: 613-991-9119; e-mail: suzanne.l.gagnon@hrsdc-rhdsc.gc.ca).

Ottawa, November 5, 2009

JURICA ČAPKUN
Assistant Clerk of the Privy Council

REGULATIONS AMENDING CERTAIN DEPARTMENT OF HUMAN RESOURCES AND SKILLS DEVELOPMENT REGULATIONS

CANADA PENSION PLAN

CANADA PENSION PLAN REGULATIONS

1. Subsection 39(2) of the Canada Pension Plan Regulations (see footnote 1) is replaced by the following:

(2) An application made in writing shall include the contributor’s name, address (including the postal code) and Social Insurance Number.

2. The heading before section 60 of the Regulations is replaced by the following:

ACCESS TO PRIVILEGED INFORMATION

3. The Regulations are amended by adding the following after section 60:

60.1 For the purposes of paragraph 104.01(3)(d) of the Act, the information referred to in subsection 104.01(3) of the Act in respect of an individual may be made available during the individual’s lifetime to any other individual authorized by that individual if

(a) the authorizing individual has made a written request to that effect to the Minister, signed within one year before the day on which it was received by the Minister; and

(b) the authorizing individual has consented in that request to the provision to the authorized individual of access to the information and has not revoked that consent.

PRESCRIBED FEDERAL INSTITUTIONS AND FEDERAL ACTS

60.2 For the purpose of subsection 104.03(2.1) of the Act, the prescribed federal institution

(a) for the administration of the Library and Archives of Canada Act is the Library and Archives of Canada; and

(b) for the administration of the Statistics Act is Statistics Canada.

4. (1) The portion of paragraph 68(1)(a) of the Regulations before subparagraph (ii) is replaced by the following:

(a) a report of any physical or mental disability including

(i) the nature, extent and prognosis of the disability,

(2) Subparagraph 68(1)(a)(iii) of the Regulations is replaced by the following:

(iii) any limitation resulting from the disability, and

5. The heading before section 71 of the Regulations is replaced by the following:

REQUEST FOR REINSTATEMENT OF DISABILITY PENSION AND DISABLED CONTRIBUTOR’S CHILD BENEFIT

6. Subsection 72(2) of the Regulations is amended by striking out “and” at the end of paragraph (e) and by replacing paragraph (f) with the following:

(f) the name of each dependent child of the applicant and whether the child is living with or apart from the applicant; and

(g) if the request includes a request to reinstate the disabled contributor’s child benefit in respect of each of the applicant’s children who are 18 years of age or more,

(i) the child’s name, address and Social Insurance Number, and

(ii) evidence, established in accordance with section 67, that the child is in full-time attendance at a school or university.

7. Section 73 of the Regulations and the heading before it are repealed.

8. Section 74 of the Regulations is replaced by the following:

74. Where the Minister, the Commissioner, the Chairman or the Vice-Chairman is satisfied, on being presented with medical certificates or other written statements, that a person, by reason of infirmity, illness, insanity or other cause, is incapable of managing their affairs, a request for a reconsideration under subsection 81(1) or (1.1) of the Act or an appeal under subsection 82(1) or 83(1) of the Act may be made on the person’s behalf by another person or an agency if that other person or that agency is authorized by or pursuant to a law of Canada or of a province to manage the person’s affairs or, where it appears to the Minister, the Commissioner, the Chairman or the Vice-Chairman that there is no other person or agency so authorized, if that other person or that agency is considered to be qualified to do so by the Minister, the Commissioner, the Chairman or the Vice-Chairman, as the case may be.

9. (1) The portion of subsection 74.1(1) of the Regulations before paragraph (a) is replaced by the following:

74.1 (1) A request for a reconsideration under subsection 81(1) or (1.1) of the Act shall be made in writing to the Minister and shall set out

(2) Paragraph 74.1(1)(b) of the Regulations is replaced by the following:

(b) if the person making the request for the reconsideration is not the contributor, that person’s name and address and their relationship to the contributor; and

10. Section 74.2 of the Regulations is replaced by the following:

74.2 A notification referred to in subsection 81(1) or (1.1) or 82(1) of the Act shall be sent in writing by the Minister.

11. Section 74.4 of the Regulations and the heading before it are repealed.

12. (1) Paragraphs 77(1)(a) and (b) of the Regulations are replaced by the following:

(a) the spouse, former spouse, common-law partner or former common-law partner of a person who is described in that definition as having received or being in receipt of an allowance or a family allowance in respect of a child for any period before the child reached the age of seven, if that spouse, former spouse, common-law partner or former common-law partner remained at home during that period as the child’s primary caregiver and that period has not already been or cannot be excluded or deducted from the person’s contributory period under Part II of the Act;

(b) a member of the Canadian Armed Forces who, before 1973, was posted to serve outside Canada, or the spouse or former spouse of such a member, who, but for the posting, would have received an allowance or family allowance for a child under seven years of age;

(2) Subsection 77(2) of the Regulations is repealed.

13. The Regulations are amended by adding the following after section 86:

INTEREST ON AMOUNTS OWING TO HER MAJESTY

87. (1) The following definitions apply in this section.

“average bank rate” means the simple arithmetic mean of the bank rates that are established during the month before the month in respect of which interest is being calculated. (taux d’escompte moyen)

“bank rate” means the rate of interest established weekly by the Bank of Canada as the minimum rate at which the Bank of Canada makes short-term advances to members of the Canadian Payments Association. (taux d’escompte)

“debt” means

(a) a debt due under subsection 66(2) of the Act in respect of which a penalty has been imposed under section 90.1 of the Act; or

(b) a debt due under subsection 66(2.02) of the Act. (créance)

“demand for payment” means a demand for payment in writing and includes a notification of a decision to impose a penalty under section 90.1 of the Act or of the amount of a penalty imposed under that section. (demande de paiement)

“due date” means, in respect of a debt,

(a) where a payment schedule has been established, any day on which a scheduled payment is to be made; or

(b) where no payment schedule has been established, the day that is 120 days after the day on which a demand for payment was issued. (date d’exigibilité)

(2) Interest is payable on all debts that are recoverable on or after the day on which this section comes into force.

(3) The accrual of interest on a debt, at the rate set out in subsection (4), begins on the due date.

(4) Interest accrues on a debt at a rate that is calculated daily and compounded monthly at the average bank rate plus three per cent.

(5) Interest does not accrue on a debt during the period in which a reconsideration under subsection 81(2) of the Act, an appeal under subsection 82(1) or 83(1) of the Act or a judicial review under the Federal Courts Act is pending in respect of that debt.

(6) The accrual of interest on a debt or on a portion of the debt, as applicable, ceases on

(a) the day before the day on which a scheduled payment in respect of the debt or a payment of the debt in full is received by Her Majesty;

(b) the day on which the debt or the portion of the debt is remitted under subsection 66(3) of the Act;

(c) the day on which the penalty that constitutes the debt is reduced or the decision imposing that penalty is rescinded under

(i) subsection 90.1(4) of the Act, or

(ii) the latest of the following decisions in respect of a decision or determination of the Minister under section 90.1 of the Act:

(A) a decision of the Minister under subsection 81(2) of the Act, and

(B) a decision on an appeal under subsection 82(1) or 83(1) of the Act or a judicial review under the Federal Courts Act;

(d) the day on which the accrued interest is remitted under subsection (7); or

(e) the day on which the debtor dies.

(7) The conditions under which the Minister may remit in whole or in part the interest payable under this section are that

(a) the interest has ceased to accrue in accordance with paragraph (6)(c);

(b) the interest cannot be collected within the reasonably foreseeable future;

(c) the administrative costs of collecting the interest would exceed the amount of that interest; and

(d) the payment of the interest would result in undue hardship to the debtor.

PENSION APPEALS BOARD RULES OF PROCEDURE (BENEFITS)

14. (1) Subsection 10.2(2) of the Pension Appeals Board Rules of Procedure (Benefits) (see footnote 2) is replaced by the following:

(2) The party shall, at least 10 days before the date set for the hearing of the appeal, also serve notice of the issue referred to in subsection (1) on the persons referred to in subsection 57(1) of the Federal Courts Act and provide a copy and proof of service of that notice to the Registrar.

(2) Subsection 10.2(4) of the Rules is replaced by the following:

(4) Where the proof of service required by subsection (2) has not been provided in accordance with that subsection, the Board may, on the request of any party or on its own motion, adjourn the hearing.

15. Subsections 16(1) and (2) of the Rules are replaced by the following:

16. (1) The Board may by subpoena summon any person to appear before it and may require them to give evidence under oath and to produce any documents that it considers necessary.

(2) A subpoena in the form set out in Schedule II or III, as applicable, may be issued by the Registrar in blank and may be completed by a party to an appeal or their solicitor, and any number of names may be inserted in the subpoena.

16. Schedule I to the Rules is amended by replacing “19” with “20”.

17. Schedule II to the Rules is amended by replacing “(Subpoena ad testificandum)” with “(Subpoena to testify)”.

18. Schedule III to the Rules is amended by replacing “(Subpoena duces tecum)” with “(Subpoena to produce)”.

REVIEW TRIBUNAL RULES OF PROCEDURE

19. Section 3.1 of the Review Tribunal Rules of Procedure (see footnote 3) is replaced by the following:

3.1 (1) Where the constitutional validity, applicability or operability of any provision of the Act or the Old Age Security Act or any regulations made under those Acts is to be put at issue before a Tribunal, the party raising the issue shall, at least 10 days before the date set for the hearing of the appeal, serve notice of that issue on the persons referred to in subsection 57(1) of the Federal Courts Act and provide a copy and proof of service of that notice to the Commissioner.

(2) Where the proof of service required by subsection (1) has not been provided in accordance with that subsection, the Tribunal may, on the request of any party or on its own motion, adjourn the hearing.

20. The Rules are amended by adding the following after section 10:

10.1 An appellant, the Minister and any person added as a party to an appeal under subsection 82(10) of the Act shall be entitled to be represented at the hearing of the appeal.

21. Section 11 of the Rules is replaced by the following:

11. The Chairman shall ensure that a copy of any documentary evidence submitted at the hearing of an appeal is provided to the appellant, the Minister and any person added as a party to the appeal, unless they have been previously provided with a copy of that evidence.

11.1 Witnesses shall be examined orally under oath at the hearing of an appeal, but, before the hearing or at any time during the hearing, any party to the appeal may apply to the Tribunal for an order permitting that all facts or any particular fact or facts may be proven other than by oral evidence and the Tribunal may make any order that in its opinion the circumstances of the case require.

22. Subsection 12(2) of the Rules is repealed.

OLD AGE SECURITY ACT

OLD AGE SECURITY REGULATIONS

23. The Old Age Security Regulations (see footnote 4) are amended by adding the following before section 28.2:

ACCESS TO PRIVILEGED INFORMATION

24. The Regulations are amended by adding the following after section 28.2:

28.3 For the purpose of paragraph 33.01(3)(d) of the Act, the information referred to in subsection 33.01(3) of the Act in respect of an individual may be made available during the individual’s lifetime to any other individual authorized by that individual if

(a) the authorizing individual has made a written request to that effect to the Minister, signed within one year before the day on which it was received by the Minister; and

(b) the authorizing individual has consented in that request to the provision of the information to the authorized individual and has not revoked that consent.

PRESCRIBED FEDERAL INSTITUTIONS AND FEDERAL ACTS

28.4 For the purpose of subsection 33.03(2.1) of the Act, the prescribed federal institution

(a) for the administration of the Library and Archives of Canada Act is the Library and Archives of Canada; and

(b) for the administration of the Statistics Act is Statistics Canada.

25. The Regulations are amended by adding the following before section 29:

REQUEST FOR RECONSIDERATION

26. The Regulations are amended by adding the following after section 47:

INTEREST ON AMOUNTS OWING TO HER MAJESTY

48. (1) The following definitions apply in this section.

“average bank rate” means the simple arithmetic mean of the bank rates that are established during the month before the month in respect of which interest is being calculated. (taux d’escompte moyen)

“bank rate” means the rate of interest established weekly by the Bank of Canada as the minimum rate at which the Bank of Canada makes short-term advances to members of the Canadian Payments Association. (taux d’escompte)

“debt” means

(a) a debt due under subsection 37(2) of the Act in respect of which a penalty has been imposed under section 44.1 of the Act; or

(b) a debt due under subsection 37(2.02) of the Act. (créance)

“demand for payment” means a demand for payment in writing and includes a notification of a decision to impose a penalty under section 44.1 of the Act or of the amount of a penalty imposed under that section. (demande de paiement)

“due date” means, in respect of a debt,

(a) where a payment schedule has been established, any day on which a scheduled payment is to be made; or

(b) where no payment schedule has been established, the day that is 120 days after the day on which a demand for payment was issued. (date d’exigibilité)

(2) Interest is payable on all debts that are recoverable on or after the day on which this section comes into force.

(3) The accrual of interest on a debt, at the rate set out in subsection (4), begins on the due date.

(4) Interest accrues on a debt at a rate that is calculated daily and compounded monthly at the average bank rate plus three per cent.

(5) Interest does not accrue on a debt during the period in which a reconsideration under subsection 27.1(2) of the Act, an appeal under subsection 28(1) of the Act or a judicial review under the Federal Courts Act is pending in respect of that debt.

(6) The accrual of interest on a debt or on a portion of the debt, as applicable, ceases on

(a) the day before the day on which a scheduled payment in respect of the debt or a payment of the debt in full is received by Her Majesty;

(b) the day on which the debt or the portion of the debt is remitted under subsection 37(4) of the Act;

(c) the day on which the penalty that constitutes the debt is reduced or the decision imposing that penalty is rescinded under

(i) subsection 44.1(4) of the Act, or

(ii) the latest of the following decisions in respect of a decision or determination of the Minister under section 44.1 of the Act:

(A) a decision of the Minister under subsection 27.1(2) of the Act, and

(B) a decision on an appeal under subsection 28(1) of the Act or a judicial review under the Federal Courts Act;

(d) the day on which the accrued interest is remitted under subsection (7); or

(e) the day on which the debtor dies.

(7) The conditions under which the Minister may remit in whole or in part the interest payable under this section are that

(a) the interest has ceased to accrue in accordance with paragraph (6)(c);

(b) the interest cannot be collected within the reasonably foreseeable future;

(c) the administrative costs of collecting the interest would exceed the amount of that interest; and

(d) the payment of the interest would result in undue hardship to the debtor.

COMING INTO FORCE

27. (1) Subject to subsections (2) and (3), these Regulations come into force on the day on which they are registered.

(2) Section 8, subsection 9(1) and section 10 come into force on April 1, 2010.

(3) Sections 13 and 26 come into force on April 1, 2011.

[46-1-o]

Footnote a
S.C. 2004, c. 22, s. 20

Footnote b
S.C. 2004, c. 22, s. 22

Footnote c
S.C. 2007, c. 11, s. 5(2)

Footnote d
S.C. 2007, c. 11, s. 9

Footnote e
R.S., c. 30 (2nd Supp.), s. 52

Footnote f
 S.C. 2007, c. 11, s. 11

Footnote g
S.C. 2005, c. 35, s. 48(2)

Footnote h
R.S., c. C-8

Footnote i
S.C. 2005, s. 35, s. 56

Footnote j
S.C. 2007, c. 11, s. 25 

Footnote k
S.C. 2005, c. 35, s. 58(2)

Footnote l
S.C. 1998, c. 21, s. 117

Footnote m
S.C. 2007, c. 11, s. 27

Footnote n
R.S., c. O-9

Footnote 1
C.R.C., c. 385

Footnote 2
 C.R.C., c. 390

Footnote 3
SOR/92-19

Footnote 4
C.R.C., c. 1246

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