Title XIII

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INTERNATIONAL FINANCIAL ACTS

1

VISVESVARAYA TECHNOLOGICAL UNIVERSITY

Belgaum, Karnataka-590014

A Report on


Submitted by,

Ramya.c.v.

Jaya NC glow

DEPARTMENT OF INSTRUMENTATION AND TECHNOLOGY

DAYANANDA SAGAR COLLEGE OF ENGINEERING

(Affiliated to VTU and approved by AICTE)

K.S. Layout, Bangalore-560 078

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1)International Financial Institutions Act of 1977, As Amended*

*includes amendments of 1988 and 2005 Foreign Operations Appropriation Acts

SEC 1301. The Congress finds that

(1) United States assistance to the multilateral development banks should promote sustainable

use of natural resources and the protection of the environment, public health, and the status of

indigenous peoples in developing countries;

(2) multilateral development bank projects, policies, and loans have failed in some cases to

provide adequate safeguards for the environment, public health, natural resources, and

indigenous peoples;

(3) many development efforts of the multilateral development banks are more enduring and less

costly if based on consultations with directly affected population groups and communities;

(4) developing country governments sometimes do not ensure that appropriate policies and

procedures are in place to use natural resources sustainably or consult with affected population

groups and communities, where costs could be reduced or benefits made more enduring; and

(5) in general, the multilateral development banks do not yet provide systematic and adequate

assistance to their borrowers to encourage sustainable resource use and consultation with

affected communities, where costs could be reduced or benefits made more enduring.

SEC. 1302.

The Secretary of the Treasurer and the Secretary of State, in cooperation with the Administrator

of the Agency for International Development, shall vigorously promote mechanisms to

strengthen the environmental performance of these banks. These mechanisms shall include

strengthening organizational, administrative, and procedural arrangements within the banks

which will substantially improve management of assistance programs necessary to ensure the

sustainable use of natural resources and the protection of indigenous peoples.

SEC. 1303.

(a)

(1) In the course of reviewing assistance proposals of the multilateral development banks, the

Administrator of the Agency for International Development, in consultation with the Secretary of

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the Treasury and the Secretary of State, shall ensure that other agencies and appropriate United

States embassies and overseas missions of the Agency for International Development are

instructed to analyze, where feasible, the environmental impacts of multilateral development

loans well in advance of such loans ' approval by the relevant institutions to determine whether

the proposals will contribute to the sustainable development of the borrowing country.

(2) To the extent possible, such reviews shall address the economic viability of the project,

adverse impacts on the environment, natural resources, public health, and indigenous peoples,

and recommendations as to measures, including alternatives that could eliminate or mitigate

adverse impacts.

(3) If there is reason to believe that any such loan is particularly likely to have substantial

adverse impacts, the Administrator of the Agency for International Development, in consultation

with the Secretary of the Treasury and the Secretary of State, shall ensure that an affirmative

investigation of such impacts is undertaken in consultation with relevant Federal agencies. If notclassified under the national security system of classification, the information collected pursuant

to this paragraph shall be made available to the public.

(b)

(1) The Secretary of the Treasury shall instruct the Executive Directors representing the United

States at the multilateral development banks as defined in section 1307(g) to urge the

management and other directors of each such bank, to provide sufficient time between the

circulation of assistance proposals and bank action on those proposals, in order to permit their

evaluation by major shareholder governments.

(2) The Secretary of the Treasury shall instruct such Executive Directors to work with other

countries ' Executive Directors and multilateral development bank management to

(A) improve the procedures of each multilateral development bank for providing its board of

directors with a complete and accurate record regarding public consultation before they vote on

proposed projects with significant environmental implications; and

(B) Revise bank procedures to consistently require public consultation on operational policy

proposals or revisions that have significant environmental or social implications.

(3) Progress under this subsection shall be incorporated into Treasurys required annual report to

Congress on the environmental performance of the multilateral development banks.

(c) Based on the information obtained during the evaluation referred to in subsection (a) of this

section and other available information, the Administrator of the Agency for International

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Development, in consultation with the Secretary of the Treasury and the Secretary of State, shall

identify those assistance proposals likely to have adverse impacts on the environment, natural

resources, public health, or indigenous peoples. The proposals so identified shall be transmitted

to the Committee on Appropriations and the Committee on Banking, Finance and Urban Affairs

of the House of Representatives and the Committee on Appropriations and the Committee onForeign Relations of the Senate, not later than April 1 and October 1 of each year following the

date of enactment of this title.

(d) The Secretary of the Treasury shall forward reports concerning information received under

subsection (a) of this section to the Executive Director representing the United States in the

appropriate bank with instructions to seek to eliminate or mitigate adverse impacts which may

result from the proposal.

SEC. 1304.

The Secretary of the Treasury, in consultation with the Secretary of State and the Administrator

of the Agency for International Development, shall create a system for cooperative exchange of

information with other interested member countries on assistance proposals of the multilateral

development banks.

SEC. 1305.

The Secretary of the Treasury shall instruct the United States Executive Directors of the

multilateral development banks to support the strengthening of educational programs within each

multilateral development bank to improve the capacity of mid-level managers to initiate andmanage environmental aspects of development activities, and to train officials of borrowing

countries in the conduct of environmental analyses.

SEC. 1306.

(a) The Secretary of the Treasury shall instruct the United States Executive Director of each

multilateral development bank to vigorously and continuously urge that each bank identify and

develop methods and procedures to insure that in addition to economic and technical

considerations, unquantified environmental values be given appropriate consideration in decision

making, and include in the documents circulated to the Board of Executive Directors concerning

each assistance proposal a detailed statement, to include assessment of the benefits and costs of

environmental impacts and possible mitigating measures, on the environmental impact of the

proposed action, any adverse environmental effects which cannot be avoided if the proposal is

implemented, and alternatives to the proposed action.

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(b) The Secretary of the Treasury shall instruct the United States Executive Director of each

multilateral development bank to vigorously and continuously promote

(1) increases in the proportion of loans supporting environmentally beneficial policies, projects,

and project components;

(2) the establishment of environmental programs in appropriate policy-based loans for the

purpose of improving natural resource management, environmental quality, and protection of

biological diversity;

(3) increases in the proportion of staff with professional training and experience in ecology and

related areas and in the areas of anthropological and sociological impact analysis to ensure

systematic appraisal and monitoring of environmental and sociocultural impacts of projects and

policies;

(4) active and systematic encouragement of participation by borrowing countries

nongovernmental environmental, community and indigenous peoples ' organizations at all stages

of preparations for country lending strategies, policy based loans, and loans that may have

adverse environmental or sociocultural impacts; and

(5) full availability to concerned or affected nongovernmental and community organization, early

in the preparation phase and at all subsequent stages of planning of full documentary information

concerning details of design and potential environmental and sociocultural impacts of proposed

loans.

SEC. 1307.

Assessment of Environmental Impact on Proposed Multilateral Development Bank Actions.

(a) ASSESSMENT REQUIRED BEFORE FAVORABLE VOTE ON PROPOSAL The

Secretary of the Treasury shall instruct the United States Executive Director of each multilateral

development bank not to vote in favor of any proposal (including but not limited to any loan,

credit, grant, guarantee) which would result or be likely to result in significant impact on the

environment, unless the Secretary, after consultation with the Secretary of State and the

Administrators of the United States Agency for International Development and the

Environmental Protection Agency, determines that for at least 120 days before the date of the

vote

(1) an assessment analyzing the environmental impacts of the proposed action, including

associated and cumulative impacts, and of alternatives to the proposed action, has been

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completed by the borrower or the bank and has been made available to the board of directors of

the bank; and

(2) Such assessment or a comprehensive summary of the assessment (with proprietary

information redacted) has been made available to affected groups, and local nongovernmentalorganizations and notice of its availability in the country and at the bank has been posted on the

banks website.

(b) Access to Assessments in All Member Countries.

The Secretary of the Treasury shall seek the adoption of policies and procedures, through

discussions and negotiations with the other member countries of the multilateral development

banks and with the management of such banks, which result in access by governmental agencies

and interested members of the public of such member countries, to environmental assessments or

documentary information containing comprehensive summaries of such assessments whichdiscuss the environmental impact of prospective projects and programs being considered by such

banks. Such assessments or summaries should be made available to such governmental agencies

and interested members of the public at least 120 days before scheduled board action, and public

participation in review of the relevant environmental information should be encouraged.

(c) Consideration of Assessment. The Secretary of the Treasury shall

(1) Ensure that an environmental impact assessment or comprehensive summary of such

assessment described in subsection (a) of this section accompanies loan proposals through the

agency review process; and

(2) take into consideration recommendations from all other interested Federal agencies and

interested members of the public.

(d) Development of Procedures for Systematic Environmental Assessment.

The Secretary of the Treasury, in consultation with other Federal agencies, including the

Environmental Protection Agency, the Department of State, and the Council on Environmental

Quality, shall

(1) instruct the United States Executive Director of each multilateral development bank to

initiate discussions with the other executive directors of the respective bank and to propose that

the respective bank develop and make available to member governments of, and borrowers from,

the respective bank, within 18 months after December 19, 1989, a procedure for the systematic

environmental assessment of development projects for which the respective bank provides

financial assistance, taking into consideration the Guidelines and Principles for Environmental

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Impact Assessment promulgated by the United Nations Environmental Programme and other

bilateral or multilateral assessment procedures; and

(2) in determining the position of the United States on any action proposed to be taken by a

multilateral development bank, develop and prescribe procedures for the consideration of, amongother things

(A) The environmental impact assessment of the action described in subsection (a);

(B) interagency and public review of such assessment; and

(C) other environmental review and consultation of such action that is required by other law.

(e) Use of United States Personnel.

The Secretary of the Treasury, in consultation with the Secretary of State, the Secretary of the

Interior, the Administrator of the Environmental Protection Agency, the Chairman of the Council

on Environmental Quality, the Administrator of the Agency for International Development, and

the Administrator of the National Oceanic and Atmospheric Administration, shall

(1) Make available to the multilateral development banks, without charge, appropriate United

States Government personnel to assist in

(A) training bank staff in environmental impact assessment procedures;

(B) providing advice on environmental issues;

(C) preparing environmental studies for projects with potentially significant environmental

impacts; and

(D) preparing documents for public release, and developing procedures to provide for the

inclusion of interested nongovernmental organizations in the environmental review process; and

(2) Encourage other member countries of such banks to provide similar assistance.

(f) Reports.

(1) In General. - The Secretary of the Treasury shall submit to the Committees on Foreign

Relations and Environment and Public Works of the Senate and the Committee on Banking,

Finance and Urban Affairs of the House of Representatives

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(A) not later than the end of the 1-year period beginning on December 19, 1989 , a progress

report on the efficacy of efforts by the United States to encourage consistent and timely

environmental impact assessment of actions proposed to be taken by the multilateral

development banks and on the progress made by the multilateral development banks in

developing and instituting environmental assessment policies and procedures; and

(B) not later than January 1, 1993, a detailed report on the matters described in subparagraph

(A).

(2) Availability of Reports. - The reports required by paragraph (1) shall be made available to the

member governments of and the borrowers from, the multilateral development banks, and to the

public.

(g) MULTILATERAL DEVELOPMENT BANK DEFINED In this title, the term `multilateral

development bank ' means the International Bank for Reconstruction and Development, theEuropean Bank for Reconstruction and Development, the International Development

Association, the International Finance Corporation, the Multilateral Investment Guarantee

Agency, the African Development Bank, the African Development Fund, the Asian

Development Bank, the Inter-American Development Bank, the Inter-American Investment

Corporation, any other institution (other than the International Monetary Fund) specified in

section 1701(c)(2), and any subsidiary of any such institution.

International Financial Activity Act Overview

International Financial Activity Act

The International Financial Activity Act, (IFAA) and related regulation provide the

Legislative framework for the International Financial Activity (IFA) Program described in the

bulletin.

The IFA Program came into effect on September 1, 2004 and replaces the International

Financial Business (Tax Refund) Act, which has been repealed.

The IFA Program provides eligible corporations and specialists who work for those

Corporations a refund of the British Columbia income tax paid on income related to

The corporations international financial activities carried on in British Columbia.

On February 21, 2006, the government proposed to eliminate the interest adjustment

Formula in the calculation of the tax refund, effective September 1, 2004, the

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Commencement date of the IFAA. This bulletin assumes the amendments will be

Enacted by the legislature and proclaimed in force.

The IFA program is expanded, effective January 1, 2006, to include refunds of

British Columbia corporate income taxes on income derived from certain patents.

Please read this bulletin in conjunction with Bulletin IFA 002, Life Science Patents

2)USA PATRIOT Act

The USA PATRIOT Act was passed by the United States Congress in 2001 as a response to

the September 11, 2001 attacks. It has ten titles, each containing numerous sections. Title III:

International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001 is

actually an act of Congress in its own right as well as being a title of the USA PATRIOT Act,

and is intended to facilitate the prevention, detection and prosecution of international moneylaundering and the financing of terrorism. The title's sections primarily amend portions of

the Money Laundering Control Act of 1986 and the Bank Secrecy Act of 1970.

The provisions of Title III are divided into three subtitles. The first deals primarily with

strengthening banking rules specifically against money laundering, especially on the

international stage. Communication between law enforcement agencies and financial institutions,

as well as among institutions, is expanded by the second subtitle, which also increases record

keeping and reporting requirements. The final portion of the title deals with currency smuggling

and counterfeiting, including quadrupling the maximum penalty for counterfeiting foreign

currency

Findings

The United States Congress found that money laundering "provides the financial fuel that

permits transnational criminal enterprises to conduct and expand their operations to the detriment

of the safety and security of American citizens" and that it is critical to the financing of global

terrorism and terrorist attacks. Money laundering is used "as protective covering for the

movement of criminal proceeds and the financing of crime and terrorism". Findings (4) and (5)

state that:

"certain jurisdictions outside of the United States that offer `offshore' banking and related

facilities designed to provide anonymity, coupled with weak financial supervisory andenforcement regimes, provide essential tools to disguise ownership and movement of

criminal funds, derived from, or used to commit, offenses ranging from narcotics

trafficking, terrorism, arms smuggling, and trafficking in human beings, to financial

frauds that prey on law-abiding citizens... [T]transactions involving such offshore

jurisdictions make it difficult for law enforcement officials and regulators to follow the

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trail of money earned by criminals, organized international criminal enterprises, and

global terrorist organizations "

Congress in particular noted that correspondent accounts are vulnerable to use by money

launderers as it is easier to obscure the identities of the owners of such accounts than with

other types of bank accounts, and that private banking services can be susceptible to

manipulation by money launderers.

Congress also found that:

"United States anti-money laundering efforts are impeded by outmoded and inadequate

statutory provisions that make investigations, prosecutions, and forfeitures more difficult,

particularly in cases in which money laundering involves foreign persons, foreign banks,

or foreign countries"

"The ability to mount effective counter-measures to international money launderers

requires national, as well as bilateral and multilateral action, using tools specially

designed for that effort"

Purposes

The purposes of the title are defined in section 302. It states that:

The purposes of this title are

(1) To increase the strength of United States measures to prevent, detect, and prosecute

international money laundering and the financing of terrorism;

(2) To ensure that--

(A) banking transactions and financial relationships and the conduct of such transactions

and relationships, do not contravene the purposes of subchapter II of chapter 53 of title31, United States Code, section 21 of the Federal Deposit Insurance Act, or chapter 2 of

title I of Public Law 91-508 (84 Stat. 1116), or facilitate the evasion of any such

provision; and

(B) The purposes of such provisions of law continue to be fulfilled, and such provisions

of law are effectively and efficiently administered;

(3) To strengthen the provisions put into place by the Money Laundering Control Act of

1986 (18 U.S.C. 981 note), especially with respect to crimes by non-United States

nationals and foreign financial institutions;

(4) to provide a clear national mandate for subjecting to special scrutiny those foreignjurisdictions, financial institutions operating outside of the United States, and classes of

international transactions or types of accounts that pose particular, identifiable

opportunities for criminal abuse;

(5) to provide the Secretary of the Treasury (in this title referred to as the `Secretary')

with broad discretion, subject to the safeguards provided by the Administrative Procedure

Act under title 5, United States Code, to take measures tailored to the particular money

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laundering problems presented by specific foreign jurisdictions, financial institutions

operating outside of the United States, and classes of international transactions or types of

accounts;

(6) To ensure that the employment of such measures by the Secretary permits appropriate

opportunity for comment by affected financial institutions;(7) To provide guidance to domestic financial institutions on particular foreign

jurisdictions, financial institutions operating outside of the United States, and classes of

international transactions that are of primary money laundering concern to the United

States Government;

(8) To ensure that the forfeiture of any assets in connection with the anti-terrorist efforts

of the United States permits for adequate challenge consistent with providing due process

rights;

(9) To clarify the terms of the safe harbor from civil liability for filing suspicious activity

reports;

(10) to strengthen the authority of the Secretary to issue and administer geographic

targeting orders, and to clarify that violations of such orders or any other requirement

imposed under the authority contained in chapter 2 of title I of Public Law 91-508 and

subchapters II and III of chapter 53 of title 31, United States Code, may result in criminal

and civil penalties;

(11) to ensure that all appropriate elements of the financial services industry are subject

to appropriate requirements to report potential money laundering transactions to proper

authorities, and that jurisdictional disputes do not hinder examination of compliance by

financial institutions with relevant reporting requirements;

(12) To strengthen the ability of financial institutions to maintain the integrity of theiremployee population; and

(13) to strengthen measures to prevent the use of the United States financial system for

personal gain by corrupt foreign officials and to facilitate the repatriation of any stolen

assets to the citizens of countries to whom such assets belong.

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3)Offshore Banking Act

Offshore banks are financial establishments used to hold funds and trusts through deposits andthe sale of financial services. The Offshore Banking Act was first enacted in Barbados in 1979

and has since been amended. The details of its establishment and legacy are best described

through its purpose, conditions and related legislation.

1. Purposeo The chief purpose of the legislation is to provide means for the licensing of offshore banks.

Although the minister of finance is ultimately responsible for approving or denying applications

for licenses, the financial institutions governed under the act are primarily administered through

the Central Bank of Barbados. Customers of the existing approved banking services include

foreign sales corporations and international business companies. Services offered includecommercial loans for international customers, international deposit transactions and foreign

exchange transactions.

Qualifications

o Service providers seeking licenses to qualify as an offshore banking provider must meet certainqualifications. First, they must receive approval from the minister of finance and be able to pay

an annual fee equivalent to $12,000 in U.S. dollars. In addition, they must show they are

qualified to conduct foreign business transactions, and they must show proof of their

incorporation as a company as well as provide personal information on their board of directors.

Other requirements include providing shareholder information as well as information forshareholder and director residents in Barbados.

Benefits

o The proposed benefits of offshore banking include no tax being withheld as well as no direct taxor capital gains imposed on the service provider. In addition, the service providers are only

required to pay between 1 percent and 2.5 percent in income tax on profits that accrue in excess

of $1 million. Lastly, the legislation operates under the condition that offshore banking services

are exempt from the Exchange Control Act, which would otherwise require excessive taxes on

dividends, royalties and other major assets controlled under the Offshore Banking Act.

Subsequent Legislation

o In 2003, the International Financial Services Act replaced the amended Offshore Banking Act of1979. Under the new legislation, the definition of international financial services in Barbados

was altered to include a broader scope under which foreign money could be received and used in

the country. In addition, this new legislation required that all licensed businesses performing

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foreign financial services have a place of business in Barbados and undergo on site examination

by the Central Bank of Barbados.

Anti-Money Laundering

o The application process for new institutions has been tightly restricted by the country's centralbank as a result of past foreign money laundering schemes. In 1998, the Barbados Parliament

established the Money Laundering (Prevention and Control) Act as a regulatory control for

domestic and offshore financial institutions in the country. The legislation required all

institutions to report all unusual transactions as well as establish effective methods for protecting

4)Bretton Woods and Related Agreements Act

R.S.C., 1985, c. B-7

An Act for carrying into effect the Agreements for an International Monetary Fund, an

International Bank for Reconstruction and Development, an International Development

Association and an International Finance Corporation and the Convention establishing the

Multilateral Investment Guarantee Agency

WHEREAS the United Nations Monetary and Financial Conference held at Bretton Woods

in July 1944 prepared the Articles of Agreement set out in Schedule I for an International

Monetary Fund and in Schedule II for an International Bank for Reconstruction and

Development;

AND WHEREAS since that time there have been prepared Articles of Agreement set out in

Schedule III for an International Development Association, in Schedule IV for an International

Finance Corporation and in Schedule V for a Multilateral Investment Guarantee Agency;

AND WHEREAS it is expedient that Canada become a member of the International

Monetary Fund, the International Bank for Reconstruction and Development, the International

Development Association, the International Finance Corporation and the Multilateral Investment

Guarantee Agency and that provision be made for acceptance by Canada of the Agreements and

the Convention therefore and for carrying out the obligations and exercising any rights of Canada

there under;

THEREFORE Her Majesty, by and with the advice and consent of the Senate and House of

Commons of Canada enacts as follows:

R.S., 1985, c. B-7, Preamble; R.S., 1985, c. 24 (1st Supp.), s. 2, c. 32 (3rd Supp.), s. 2.

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Short title

1. This Act may be cited as the Bretton Woods and Related Agreements Act.

R.S., 1985, c. B-7, s. 1; R.S., 1985, c. 24 (1st Supp.), s. 3.

Agreements approved

2. The Agreements for an International Monetary Fund, an International Bank for

Reconstruction and Development, an International Development Association and an

International Finance Corporation and the Convention establishing the Multilateral Investment

Guarantee Agency, in this Act referred to as the Agreements, set out in Schedules I to V,

respectively, are hereby approved.

R.S., 1985, c. B-7, s. 2; R.S., 1985, c. 24 (1st Supp.), s. 4, c. 32 (3rd Supp.), s. 3.

Acceptance authorized

3. The Governor in Council may authorize the acceptance on behalf of Canada of the

Agreements and may make such appointments, do and authorize such acts and things and make

such orders and regulations as are necessary for that purpose and for carrying out the obligations

and exercising any rights of Canada under the Agreements.

R.S., c. B-9, s. 2; 1980-81-82-83, c. 128, s. 1.

Establishment of par value

4. Without restricting the generality of section 3 and notwithstanding any other statute or law,the Governor in Council may take such measures as he deems necessary to establish, for the

purposes and in accordance with the terms of the Agreement for an International Monetary Fund,

the par value of the Canadian dollar.

R.S., c. B-9, s. 2; 1980-81-82-83, c. 128, s. 1.

5)Agreement on Internal Trade Implementation Act

S.C. 1996, c. 17

Assented to 1996-06-20

An Act to implement the Agreement on Internal Trade

WHEREAS the Government of Canada together with the Governments of Newfoundland,

Nova Scotia, Prince Edward Island, New Brunswick, Quebec, Ontario, Manitoba, Saskatchewan,

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Alberta, British Columbia, the Northwest Territories and the Yukon Territory have entered into

an Agreement on Internal Trade;

AND WHEREAS the reduction or elimination of barriers to the free movement of persons,

goods, services and investments is essential for the promotion of an open, efficient and stabledomestic market to enhance the competitiveness of Canadian business and sustainable

development;

NOW, THEREFORE, Her Majesty, by and with the advice and consent of the Senate and House

of Commons of Canada enacts as follows:

SHORT TITLE

Short title

1. This Act may be cited as the Agreement on Internal Trade Implementation Act.

INTERPRETATION

Definitions

2. in this Act,

Agreement

Accord

Agreement means the Agreement on Internal Trade signed in 1994 and published in Part Me

of the Canada Gazette;

Minister

Ministre

Minister, in respect of any provision of this Act, means the member of the Queens Privy

Council for Canada designated as the Minister for the purposes of that provision under section 8.

PURPOSE

3. The purpose of this Act is to implement the Agreement.

HER MAJESTY

Binding on Her Majesty

4. This Act is binding on Her Majesty in right of Canada.

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GENERAL

Prohibition of private cause of action

5. (1) there is no cause of action and no proceedings of any kind shall be taken, without the

consent of the Attorney General of Canada, to enforce or determine any right or obligation that is

claimed or arises solely under or by virtue of section 9 or 11, or an order made under section 9.

Where private cause of action under Agreement

(2) Except to the extent provided in Part B of Chapter Seventeen of the Agreement, there is

no cause of action and no proceedings of any kind shall be taken, without the consent of the

Attorney General of Canada, to enforce or determine any right or obligation that is claimed or

arises solely under or by virtue of the Agreement.

6)INTERNATIONAL BUSINESS ACTIVITY ACT

Definitions

1 In this Act:

"Assess", in respect of assessing a penalty against a person under section 29 [assessment of

administrative penalty], includes reassess;

"Business" has the same meaning as in section 248 (1) of the federal Act but does not include an

adventure or concern in the nature of trade;

"Claimant" means

(a) A registered corporation or a corporation that previously was a registered corporation,

(b) AN IB specialist or an individual who previously was an IB specialist;

(c) In the definition of "claimant information" and in sections 46 [attachment] and

58 [communication of information], any other person assessed a penalty under section

29 [assessment of administrative penalty] or a director liable to pay an amount under section

48 [liability of directors];

"Claimant information" means information of any kind and in any form relating to one or

more claimants(A) that is obtained for the purposes of this Act by or on behalf of the minister, or

(B) that is prepared from information referred to in paragraph (a),

But does not include information that does not directly or indirectly reveal the identity of the

claimant to whom the information relates;

"Commissioner" means the Commissioner of Income Tax;

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"Designated international business" means a designated international business specified in the

regulations;

"determine", in respect of determining the amount of any tax refund, interest payable on a tax

refund under section 33 [interest on tax refunds and refundable fee]or interest payable by a

person under section 35 [interest on recoverable amount], includes predetermine;"Federal Act" means the Income Tax Act(Canada);

"IB specialist" means an individual who is registered under section 14 or who is an IFA

specialist;

"IFA specialist" means an individual who was first registered under section 14 before March 4,

2010;

"International business" in relation to a corporation, means the following types of businesses:

(a) International financial business;

(b) International film distribution business;

(c) International patent business;

"International film distribution business" means an international film distribution business

that meets the requirements of the regulations and, if required under the regulations, is certified

in accordance with the regulations;

"International financial activity" means an international financial activity under section 2;

"International financial business", in relation to a corporation, means a business

(A) that is a qualifying financial business carried on by the corporation through a fixed place of

business in British Columbia, and

(b) All the activities of which are international financial activities;

"International patent business" means an international patent business that meets the

requirements of the regulations and, if required under the regulations, is certified in accordance

with the regulations;

"Non-resident" has the same meaning as in section 248 (1) of the federal Act;

"Person" has the same meaning as in section 248 (1) of the federal Act and includes a

partnership;

"Permanent establishment" has the same meaning as in section 400 (2) of the Income Tax

Regulations (Canada);

"Property" has the same meaning as in section 248 (1) of the federal Act;

"Qualifying financial business" means a qualifying financial business under theregulations;"qualifying transaction" means a qualifying transaction under the regulations;

"Recoverable amount" means

(a) The amount a person is liable to pay to the government under section 34 [liability for

recoverable amount], or

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(b) in sections 41 to 45, 47, 49, 50 and 58, the amount a director is liable to pay to the

government under section 48 [liability of directors];

"Registered corporation" means a corporation that is registered under section

10 [registration] and whose registration is not suspended or cancelled;

"Report" means a report under section 26 [report respecting IFA specialists];"Return" means a return under section 24 [return];

"Securities Corporation" means

(a) A savings institution, or

(b) A corporation registered under the Securities Actas a dealer or underwriter;

"Society" means the International Financial Centre British Columbia Society;

"Tax refund" means a tax refund under this Act;

"Transaction" includes an arrangement or event.

International financial activity

2(1) in this section:

"Non-resident broker" means a non-resident person who

(a) Is authorized under the laws of a foreign jurisdiction to trade in securities as principal or

agent,

(b) Is not registered under the Securities Actand is not authorized under a similar law of another

province to trade in securities as principal or agent, and

(c) Is not related to a corporation that is registered under the Securities Actor authorized under asimilar law of another province to trade in securities as principal or agent;

"Non-resident person" does not include

(a) A partnership unless all of the partners of the partnership are non-resident persons, or

(b) A person who carries on a business through a permanent establishment in Canada, but only in

respect of that business.

(2) Subject to subsections (3) to (5), any of the following is an international financial activity of a

corporation:

(A) Accepting deposits in any currency from a non-resident person;

(b) Making deposits in any currency with a non-resident person;

(c) Making loans in any currency to a non-resident person;

(d) Borrowing in any currency from a non-resident person;

(e) Guaranteeing the payment of a debt if all of the debtors or creditors are non-resident persons;

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(f) If the corporation is a savings institution,

(I) Issuing and accepting letters of credit, or

(ii) Handling documentary collections, in respect of a transaction of which not more than one

party is resident in Canada;

(g) Acting

(I) if the corporation is a securities corporation,

(A) as principal in making or offering to make with a non-resident person an agreement for

acquiring, disposing of, subscribing for or underwriting securities, or

(B) as agent for a person resident in Canada in making or offering to make with a non-resident

person an agreement for acquiring, disposing of, subscribing for or underwriting securities,

except securities that are listed on a stock exchange prescribed in section 3200 of the Income Tax

Regulations (Canada),

(ii) if the corporation is not a securities corporation, as principal in making or offering to makewith a non-resident person an agreement for acquiring or disposing of prescribed securities, or

(iii) as agent for a non-resident person in making or offering to make with a person resident in

Canada or another non-resident person an agreement for acquiring, disposing of, subscribing for

or underwriting securities;

(h) Insuring or reinsuring prescribed risks

(i) of, or relating to, non-resident persons, and

(ii) Relating to property situated or events occurring outside of Canada;

(J) Providing financial advice, other than prescribed financial advice, to non-resident persons;

(j) Dealing in foreign exchange other than on the corporation's own account, if the corporation is

(i) a savings institution,

(ii) A corporation whose primary business is dealing in foreign exchange, or

(iii) A prescribed corporation;

(k) Managing, for a fee or commission, foreign exchange activities for non-resident persons;

(l) Managing, for a fee or commission, investments for non-resident persons;

(m) managing, for a fee or commission and for persons resident in Canada, investments in

securities that are issued by a non-resident person and that are not listed with a stock exchangeprescribed in section 3200 of the Income Tax Regulations (Canada);

(n) Preparing stock market or other financial research, other than prescribed financial research,

for the exclusive use of non-resident persons;

(o) Collecting trade accounts that

(I) Are receivable from a non-resident person, and

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(ii) Have been bought outright from the seller and without recourse to the seller;

(p) leasing property to a non-resident person by means of a direct financing lease, as defined in

the Handbook of The Canadian Institute of Chartered Accountants, as amended from time to

time;

(q) [Repealed 2010-18-37.]

(q.1) [Repealed 2010-18-37.]

(q.2) [Repealed 2010-18-37.]

(r) providing, to a non-resident person, administrative support services, other than prescribed

administrative support services, that are directly related to a financial activity of the non-resident

person;

(r.1) [Repealed 2010-18-37.]

(s) Providing, to a non-resident person, services, equipment and premises for continuing thebusiness operations of the non-resident person if primary equipment or premises used by the

non-resident person becomes temporarily non-operational;

(t) Any other prescribed financial activity that is conducted exclusively for non-resident persons

and from which the corporation earns fee or commission income.

(3) An activity referred to in subsection (2) (c), (d), (f), (h) and (j) (ii) and (iii) is not an

international financial activity unless the corporation carries on the activity for, with or on behalf

of a person who is dealing at arm's length with and who is not affiliated with the corporation.

(3.1) an activity referred to in subsection (2) (a) to (d) is not an international financial activity

unless the corporation carries on the activity as principal in a debtor creditor relationship.

(4) Subsection (3) does not apply in respect of subsection (2) (h) if the corporation is registered

as a captive insurance company under the Insurance (Captive Company) Act.

(5) An activity referred to in subsection (2) (g) is not an international financial activity if the

corporation is acting in respect of securities of the capital stock of

(a) The corporation, or

(b) A person affiliated with the corporation.

(6) For the purposes of subsection (2) (g) (i) and (ii), if a corporation is acting as principal oragent in making or offering to make an agreement referred to in that subsection with a non-

resident broker acting as agent for another person, the non-resident broker is deemed to be the

non-resident person.

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Amounts fixed by assessment or determination

3 A reference in this Act to an amount, in respect of a claimant, under the Income Tax Actor

federal Act that is fixed, subject to variation on objection or on appeal, by assessment,

reassessment, determination or redetermination in accordance with the Income Tax Actor federal

Act is a reference to that amount as fixed in accordance with the applicable Act.

Dealing at arm's length and affiliated persons

4 Sections 251 and 251.1 of the federal Act apply for the purposes of this Act.

Resident in Canada

5 Section 250 of the federal Act applies for the purposes of this Act.

Series of transactions

6 For the purposes of this Act, a series of transactions is deemed to include any related

transactions completed in contemplation of the series.

Taxation year

7 The taxation year under this Act for a corporation or individual is the same as the taxation year

under the federal Act for the corporation or individual.

Application

8 (1) If a corporation is a registered financial institution under the International Financial

Business (Tax Refund) Acton August 31, 2004, this Act applies to the corporation only for

taxation years beginning on or after September 1, 2004.

(2) This Act applies to an individual for taxation years beginning on or after January 1, 2005.

Documents

Title XIII