Preamble
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
Section 1: Definitions
- "Automation" means the use of machines, robots, or AI systems to perform tasks previously carried out by humans.
- "Automated Asset" means any physical robot or software-powered system capable of replacing human labor.
- "Automation Levy" means the tax imposed under Section 2 of this Act.
- "Impact Fund" means the Automation Impact Fund established by Section 3.
Section 2: Automation Levy
- An Automation Levy shall be imposed on all businesses that acquire or deploy Automated Assets, at a rate of 2% of the purchase price or fair market value of each asset.
- The levy shall be reported and remitted to the Canada Revenue Agency on an annual basis, following the corporation’s fiscal year-end.
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Exemptions:
- Small enterprises with annual revenues under \$1 million.
- Investments in collaborative systems where human workers are augmented, not replaced.
Section 3: Automation Impact Fund
- All revenues from the Automation Levy shall be deposited into the Automation Impact Fund, administered by the Minister of Employment, Workforce Development and Disability Inclusion.
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Funds shall be allocated to:
- Reskilling and upskilling programs for displaced workers.
- Wage insurance pilots in regions with high automation risk.
- Support for small businesses transitioning to hybrid automation models.
- A public annual report shall be published detailing Fund allocations and outcomes.
Section 4: Enforcement and Penalties
- The Canada Revenue Agency shall assess penalties up to 25% of unpaid levies for late or inaccurate filings.
- Repeat non-compliance may trigger audits and additional fines, as per the Income Tax Act.
Section 5: Reporting Requirements
- Employers subject to the Automation Levy must file an annual Automated Asset Inventory with the Minister.
- The Inventory must include numbers, types, and deployment dates of all Automated Assets.
Section 6: Review and Coming into Force
- The Minister shall conduct a comprehensive review of this Act’s impacts within three years of coming into force and table a report in Parliament.
- This Act comes into force on April 1, 2026.