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C
Canada bill (bon
du Canada).
Promissory note denominated in US dollars. Canada bills mature not more
than 270 days from their date of issue and are discount obligations
with a minimum order size of US$1,000,000 and a minimum denomination of
US$1,000. Primary distribution occurs through a number of specified
issuing agents, and rates on Canada bills are posted daily. Participants
in this market include US, Canadian and international financial
institutions.
Canada Child Tax Benefit (CCTB) (Prestation
fiscale canadienne pour enfants (PFCE)).
The CCTB provides annual financial assistance to families with
children. It has two key components: the CCTB base
benefit and the National Child
Benefit supplement. As of July 2001, the maximum CCTB benefits will be
$2,372 for the first child and $2,172 for each subsequent child.
Nationally, the CCTB will then provide close to $7.7 billion to 3.2 million
families. Consult the Department of Finance's Canada
Child Tax Benefit: Update pamphlet for more information and the Canada
Revenue Agency Canada
Child Tax Benefit (CCTB) page to find out how to qualify.
Canada Child Tax Benefit (CCTB) base benefit (prestation
de base de la Prestation fiscale canadienne pour enfants (PFCE)).
Effective July 2000, the CCTB base benefit provided to modest- and
middle-income families was increased. This
was achieved by increasing the net
income threshold at which the base benefit begins to be phased out from
$25,921 to $29,590. As of July 2001, the threshold was further increased to
$32,000.
Consult the Department of Finance's Canada
Child Tax Benefit: Update pamphlet for more information and the Canada Revenue Agency Canada
Child Tax Benefit (CCTB) page to
find out how to qualify.
Canada Deposit Insurance Corporation (CDIC)
(Société d'assurance-dépôts
du Canada (SADC)).
A federal Crown corporation that was established in
1967 to protect Canadian currency deposits against the possible failure of
CDIC member financial institutions.
As a general rule, eligible deposits are protected up to a maximum of
$100,000 per person, including principal and interest,
at each member institution. For more information, visit the Canada
Deposit Insurance Corporation Web site.
Canada Foundation for Innovation (CFI) (Fondation
canadienne pour l'innovation (CFCI)).
An independent organization that makes strategic investments
in Canadian research. The foundation provides funding for research at
universities, colleges, research hospitals and not-for-profit
institutions, in areas such as science, engineering, health and the
environment. Members of the foundation act independently of the government
and are drawn from the research community and the private sector. The CFI
does not support projects of government departments, agencies or Crown
corporations. In 1998 the CFI announced $58 million in awards, about
45 per cent of which was for health research infrastructure. It
expects to announce about $429 million in awards in 1999. For more
information, visit the Canada
Foundation for Innovation Web site.
Canada Health and Social Transfer (CHST) (Transfert
canadien en matière de santé et de programmes sociaux (TCSPS)).
Federal transfer provided to provinces and territories in support of provincial health
care, post-secondary education, social assistance and social services, including early childhood
development and early learning and child care. On April 1, 2004, the CHST was replaced by the
Canada Health Transfer (CHT) in support of health care and the
Canada Social Transfer (CST) in support of other
social programs previously supported by the CHST. For more information, visit the Department of Finance
Federal Transfers to Provinces and Territories Web page.
Canada Health Transfer (CHT) (Transfert
canadien en matière de santé (TCS)).
Federal transfer provided to each province and territory in support of provincial
health care. CHT funding is provided through cash payments and tax transfers and is subject to the five principles of the
Canada Health Act and the prohibition of minimum residency requirements for social
assistance. For more information, visit the Department of Finance Federal
Transfers to Provinces and Territories Web page.
Canada Investment and Savings (CI&S) (Placements
Épargne Canada (PEC)) .
A special operating agency in the
Department of Finance. Its mandate is to revitalize the federal
government's retail debt program and to maintain a reasonable retail share
of the Government of Canada's debt. For more information, visit the Canada
Investment and Savings Web site.
Canada note (billet
du Canada).
Promissory note usually denominated in US dollars and available in
book-entry form. Notes can be issued for terms of nine months or longer,
and can be issued at a fixed or a floating rate. Canada notes are issued
for foreign exchange reserve
funding purposes only.
Canada Pension Plan (CPP) (Régime
de pensions du Canada (RPC)).
A contributory, earnings-related social insurance program which ensures
a measure of income protection to
contributors and their families against the loss of income due to
retirement, disability or death. The plan operates throughout Canada
except in the province of Quebec, where a similar program
– the Quebec Pension Plan
– is in effect. CPP contributions and benefits are not part of
the federal government's revenues or expenditures and therefore do not
directly affect the federal government's budget. For more information,
visit the Canada
Pension Plan page at the Social Development Canada Web site.
Canada Premium Bond (CPB) (Obligation
à prime du Canada (OPC)).
A new savings product for individual Canadians, introduced by the
Government of Canada in 1998. It offers a higher interest
rate compared to the Canada Savings Bond and is
redeemable once a year on the anniversary of the issue date or during the
30 days thereafter without penalty. For more information, visit the Canada
Investment and Savings Canada
Premium Bonds Web page.
Canada Savings Bond (CSB) (Obligation
d'épargne du Canada (OEC)).
CSBs are currently offered for sale by most Canadian financial
institutions to individual Canadians. CSBs pay a competitive rate
of interest that is guaranteed for one or more years. They may be
cashed at any time and, after the first three months, pay interest up to
the end of the month prior to encashment. For more information, visit the
Canada Investment and Savings Canada
Savings Bond Web page.
Canada Social Transfer (CST) (Transfert canadien en matière de programmes sociaux
(TCPS)).
Federal transfer provided to each province and territory in support of post-secondary education, social assistance and social services, including early childhood development and early learning and
childcare. CST funding is provided through cash payments and tax transfers
and supports the Government of Canada’s commitment to maintain the five principles of the
Canada Health Act and to prohibit minimum residency requirements for social assistance. For more information, visit the Department of Finance
Federal
Transfers to Provinces and Territories Web page.
Canadian film or video production tax credit
(crédit d'impôt
pour production cinématographique ou magnétoscopique canadienne).
The Canadian film or video production tax
credit mechanism provides a fully refundable tax credit of up to 12
per cent of the eligible cost of a certified Canadian film or video
production to qualified taxable Canadian corporations. The credit is
computed as 25 per cent of qualified labour costs, which may not exceed 48
per cent of the cost of the film or video production (i.e. generally a net
credit of 12 per cent). The Minister of Canadian Heritage is responsible
for certifying whether a film or video production meets certain prescribed
Canadian content rules. For more information, visit the Heritage Canada
Guide
to Federal Programs for the Film and Video Sector and
the Canada Revenue Agency Film
Tax Credit Programs Web page.
Canadian International Trade Tribunal (CITT)
(Tribunal canadien du
commerce extérieur (TCCE)).
The body responsible under Canadian legislation for findings of injury
in anti-dumping and countervailing
duty cases and the provision of advice to the government on other
import issues. For more information, visit the Canadian
International Trade Tribunal Web site.
Canadian Life and Health Insurance
Compensation Corporation (CompCorp) (Société
canadienne d'indemnisation pour les assurances de personnes (SIAP)).
A private, non-profit corporation that was established in 1990
by the life insurance industry. It is funded by the industry and provides
Canadian policyholders with compensation coverage against loss of policy
benefits in the event of the insolvency of their insurance
company. For more information, visit the Assuris
Web site.
Canadian Payments Association (CPA) (Association
canadienne des paiements (APC)).
A not-for-profit association established through legislation
in 1980 to operate national systems for the clearing and settlement
of payment items between financial institutions. To maintain the safety
and soundness of the Canadian payments system taking into account the interest of users, the CPA also
administers the framework of rules, standards and procedures for the
exchange, clearing and settlement of cheques, pre-authorized debits,
direct deposit payments, wire transfers and other payment items. The
Association’s membership includes chartered banks, trust and loan
companies, credit union centrals and federations of caisses populaires,
and other deposit-taking financial institutions. The Canadian Payments
Act, passed by Parliament in June 2001, will extend eligibility
for CPA membership to life insurance companies, securities dealers and
money market mutual funds. For more information, visit the Canadian
Payments Association Web site. See also payments system; trust
company.
capital account (balance
des capitaux).
A measure of the sales and purchases of assets, such as direct investment
(e.g. the purchase of a factory) or portfolio investment (e.g. the
purchase of stocks and bonds), between Canada and the rest of the world.
If Canada has a current account deficit,
it must be financed by either selling Canadian assets to foreigners or
borrowing from foreigners, typically in the form of government bonds.
Canada typically runs a current account deficit. This requires a capital
inflow, which increases our overall foreign indebtedness.
capital cost allowance (CCA) (déduction
pour amortissement (DPA)).
A tax deduction for
business-related capital property that provides for the depreciation of
these assets. Businesses can deduct up to a fixed percentage of the
depreciated cost each year. There are approximately 40 CCA classes
described in the regulations to the Income Tax Act. The CCA rate
applicable to each class is usually intended to reflect the economic life
of the assets of that class. Where the CCA rate is clearly in excess of
that required to reflect the economic useful life, it can be considered to
be an accelerated CCA.
capital gain (gain
en capital ou
plus-value).
An increase in the money value of a capital asset such as a share,
bond, parcel of land, antique or other asset, which results in a profit if
the asset is sold. If a share is bought at $26 and sold at $30, there is a
capital gain of $4.
See also taxable capital gain.
capital tax (impôt
sur capital).
The federal government taxes the capital of all large corporations (large
corporations tax) and of large financial institutions (financial
institutions capital tax). The financial institutions capital tax acts as a
minimum tax and ensures that large financial institutions pay tax every
year. All provinces levy capital taxes on financial institutions and seven
provinces levy a capital tax on other corporations. Provinces rely more
heavily on corporate capital taxes than the federal government.
Centre for the Financial Services OmbudsNetwork (CFSON)
(Centre du Réseau de conciliation du
secteur financier).
The CFSON is an industry-sponsored consumer assistance and complaints
referral service. It provides consumers of banking, life and health
insurance, property and casualty insurance, securities and mutual fund
products with access to a network of industry-level ombudsman services.
These ombudsmen provide independent and impartial dispute resolution and redress services, at no cost
to consumers. The CFSON is also responsible for developing and promoting
industry standards and best practices for the handling of financial consumer
complaints by the network. For more information, visit the CFSON
Web site.
closely held bank (banque
à participation restreinte).
A bank in
which a single shareholder can own more than 20 per cent of outstanding
shares. Typically, a closely held bank is controlled (but not necessarily
100-per-cent owned) by a single shareholder. A common example would be a
domestically incorporated subsidiary
of
a foreign bank, controlled by a parent institution.
See also: widely
held bank.
coercive tied selling
(vente liée avec
coercition).
A practice that imposes undue pressure, or coerces a
person to obtain a product or service from a bank
and any of its affiliates, as a condition for obtaining a loan or any
other product from that same bank. Section 459.1 of the Bank Act
prohibits coercive tied selling and requires banks to disclose to
consumers that coercive tied selling is illegal through the display of
plain-language brochures made available at all of their branches.
collateral (nantissement).
Securities such as bonds, shares, insurance policies, or other valuable
property that are pledged against a loan. If the borrower fails to repay
the loan, the creditor can sell the collateral assets to recover the
money.
commercial paper (effet
ou papier commercial).
Short-term debt securities issued by non-financial corporations.
commercialization (commercialisation).
- The adoption of a commercial approach to the delivery of public
services. Commercialization helps to improve services by increasing
responsiveness and reducing costs while protecting the public
interest. It can also involve cost recovery
from users. Commercialization has been used to improve the management
of Crown corporations, mixed private-public
enterprises, transfers to other levels of government and privatization.
For example, the National Airports Policy leased Canada's 26 busiest
airports to local, not-for-profit organizations that manage them
towards self-sufficiency.
Competition Bureau (Bureau
de la concurrence).
A unit of the federal Department of Industry, headed by the
Commissioner of Competition, whose mandate is to ensure that Canadian
businesses are in conformity with the laws under its jurisdiction. The
Competition Bureau maintains and encourages fair competition in Canada
through the administration and application of four statutes: the Competition
Act, the Consumer Packaging and Labelling Act, the Textile
Labelling Act and the Precious Metals Marking Act. For more
information, visit the Competition
Bureau Web site.
competitiveness (compétitivité).
The ability to sell goods or services profitably relative to other
producers of the same goods or services. A number of factors contribute to
competitiveness including technological change, a highly skilled labour
force, low inflation and a
sound public policy environment. As competitiveness improves, costs are
reduced and exports expand across international markets.
compound interest (intérêt
composé).
The interest earned on a
principal amount, including interest earned in an earlier period. A deposit
(or loan) compounded at 10 per cent annually will double in about seven
years if no money is taken out (or paid back).
Consolidated Revenue Fund (Trésor).
The general pool of all income
of the federal government, such as tax, tariff
and licence fee income, and profits from Crown corporations.
All money received by the federal government must be credited to this fund
and be properly accounted for.
consumer expenditure (dépense
de consommation).
Refers to spending by consumers to satisfy personal demands. It is by
far the largest share of spending in Canada.
consumer price index (CPI) (indice
des prix à la consommation (IPC)).
Measure of price changes produced by Statistics Canada on a monthly
basis. The CPI measures the retail prices of a "shopping basket"
of about 300 goods and services including food, housing, transportation,
clothing and recreation. The index is "weighted," meaning that
it gives greater importance to price changes for some products than others
– more to housing, for example, than to entertainment – in an effort
to reflect typical spending patterns. Increases in the CPI are also
referred to as increases in the cost of living. For more information,
visit Statistic Canada's Consumer
Price Index Web page
consumption tax (taxe
à la consommation).
A tax on consumption – purchases of goods and
services. Such taxes are levied by both the federal and provincial
governments. Federal consumption taxes consist mainly of the goods
and services tax (GST) and excise taxes
on motor fuel, tobacco products and alcoholic beverages. Provincial
consumption taxes consist mainly of retail sales taxes, and provincial
taxes on fuel and tobacco products. For more information, visit the
Canada Revenue Agency Goods
and Services Tax (GST) and Harmonized Sales Tax (HST) Web page.
Contingency Reserve (réserve
pour éventualités).
Funds set aside in the fiscal projections to cushion against changes in
the economy. When these reserves are not otherwise used they are applied
to the federal debt.
co-operative credit association
(association coopérative de crédit).
An association that is organized and operated on co-operative
principles, with one of its principal purposes being to provide financial
services to its members.
core unemployment rate or
natural rate of unemployment (taux
de chômage fondamental ou naturel ou non accélérationniste).
The lowest rate of unemployment
that can occur before the scarcity of qualified workers will begin to
boost wage growth and inflation.
The core rate is often thought of as the percentage of the labour
force that is either frictionally or structurally unemployed.
corporate tax (impôt
des sociétés).
Tax on corporate income in Canada
and other taxes and levies paid by corporations to the various levels of
government in Canada. These include capital and insurance premium taxes;
payroll levies (e.g., employment
insurance, Canada Pension Plan, Quebec
Pension Plan and Workers' Compensation); property taxes; and indirect
taxes, such as sales and excise taxes,
levied on business inputs. For more general information, visit the
Canada Revenue Agency Business
Web page.
cost recovery (recouvrement
des coûts).
The full or partial financing of programs or services through fees or
other charges. It is applied primarily to services that confer a private
benefit.
countervailing duty (droit
compensateur).
Additional duties imposed by the importing country to offset government
subsidies in the exporting country
when the subsidized imports cause material injury to domestic industry in
the importing country.
coupon(coupon).
The interest rate specified
on a bond when it is originally issued.
credit union (coopérative
de crédit).
A
co-operative financial
institution that is owned by its members and operates for their
benefit. Credit unions and caisses populaires are subject to provincial
regulation and are usually small and locally oriented.
Crown corporation (société
d'État).
A corporation wholly owned directly or indirectly by government in lieu
of the Crown.
current account (balance
courante ou balance des opérations courantes ou balance des paiements
courants).
A measure of the flow of goods, services and investment
income between Canada and the rest of the world, including merchandise
imports and exports, international service transactions, and interest
and dividend payments or receipts. If a country receives more money from investments
in and the sale of goods and services to the rest of the world than it
pays out, it has a current account surplus. A country can also have a surplus
in merchandise trade, but a larger deficit
in service and investment transactions, resulting in an overall current
account deficit. The deficit on investment transactions reflects the need
to pay interest and dividends on foreign
debt.
cyclical unemployment (chômage
conjoncturel).
Temporary downturn in the job market. The most common form of cyclical
unemployment occurs when workers are temporarily laid off.
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