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Bill C-28

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	TAX ON QUALIFYING ENVIRONMENTAL TRUSTS
	(2) Subsection (1) applies to the 1997 and subsequent taxation years.
	61. (1) Subsections 211.6(1) to (4) of the Act are replaced by the following:
Charging provision	211.6 (1) Every trust that is a qualifying environmental trust at the end of a taxation year shall pay a tax under this Part for the year equal to 28% of its income under Part I for the year.
Computation of income	(2) For the purpose of subsection (1), the income under Part I of a qualifying environmental trust shall be computed as if this Act were read without reference to subsections 104(4) to (31) and sections 105 to 107.
Return	(3) Every trust that is a qualifying environmental trust at the end of a taxation year shall file with the Minister on or before its filing-due date for the year a return for the year under this Part in prescribed form containing an estimate of the amount of its tax payable under this Part for the year.
Payment of tax	(4) Every trust shall pay to the Receiver General its tax payable under this Part for each taxation year on or before its balance-due day for the year.
	(2) Subsection (1) applies to the 1997 and subsequent taxation years.
	62. (1) Paragraph 212(1)(r) of the Act is replaced by the following:
Registered education savings plan	(r) a payment that is
	(i) required by paragraph 56(1)(q) to be included in computing the non-resident person's income under Part I for a taxation year, and
	(ii) not required to be included in computing the non-resident person's taxable income or taxable income earned in Canada for the year;
	(2) Subsection (1) applies to amounts paid or credited after February 28, 1979.
	63. (1) Paragraph 214(3)(j) of the Act is repealed.
	(2) Subsection (1) applies after 1997.
	64. (1) Subparagraph 217(3)(b)(ii) of the Act is replaced by the following:
	(ii) the person's income (computed without reference to subsection 56(8)) for the year minus the total of such of the deductions permitted for the purpose of computing taxable income as can reasonably be considered wholly applicable to the amounts described in subparagraphs 115(1)(a)(i) to (vi).
	(2) Subsection (1) applies to the 1997 and subsequent taxation years.
	65. Section 241 of the Act is amended by adding the following after subsection (3.1):
Registered charities	(3.2) An official may provide to any person the following taxpayer information relating to a charity that at any time was a registered charity:
	(a) a copy of the charity's governing documents, including its statement of purpose;
	(b) any information provided in prescribed form to the Minister by the charity on applying for registration under this Act;
	(c) the names of the persons who at any time were the charity's directors and the periods during which they were its directors;
	(d) a copy of the notification of the charity's registration, including any conditions and warnings; and
	(e) if the registration of the charity has been revoked, a copy of any letter sent by or on behalf of the Minister to the charity relating to the grounds for the revocation.
	66. (1) The definition ``mining reclamation trust'' in subsection 248(1) of the Act is repealed.
	(2) Paragraph (e.2) of the definition ``cost amount'' in subsection 248(1) of the Act is replaced by the following:
	(e.2) where the property is an interest of a beneficiary under a qualifying environmental trust, nil, and
	(3) Subsection 248(1) of the Act is amended by adding the following in alphabetical order:
``private foundation'' « fondation privée »	``private foundation'' has the meaning assigned by section 149.1;
``public foundation'' « fondation publique »	``public foundation'' has the meaning assigned by section 149.1;
``qualifying environmental trust'' « fiducie pour l'environneme nt admissible »	``qualifying environmental trust'' at any time means a trust resident in a province and maintained at that time for the sole purpose of funding the reclamation of a site in the province that had been used primarily for, or for any combination of, the operation of a mine, the extraction of clay, peat, sand, shale or aggregates (including dimension stone and gravel) or the deposit of waste, where the maintenance of the trust is or may become required under the terms of a contract entered into with Her Majesty in right of Canada or the province or is or may become required under a law of Canada or the province and the contract was entered into or that law was enacted, as the case may be, on or before the later of January 1, 1996 and the day that is one year after the day on which the trust was created, but does not include a trust
	(a) that relates at that time to the reclamation of a well,
	(b) that is not maintained at that time to secure the reclamation obligations of one or more persons or partnerships that are beneficiaries under the trust,
	(c) that at that time has a trustee other than
	(i) Her Majesty in right of Canada or the province, or
	(ii) a corporation resident in Canada that is licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee,
	(d) that borrows money at that time,
	(e) that acquired at that time any property that is not described in any of paragraphs (a), (b) and (f) of the definition ``qualified investment'' in section 204,
	(f) to which the first contribution was made before 1992,
	(g) from which any amount was distributed before February 23, 1994,
	(h) if that time is before 1998 and the trust is not a mining reclamation trust at that time,
	(i) to which the first contribution was made before 1996,
	(ii) from which any amount was distributed before February 19, 1997, or
	(iii) any interest in which was disposed of before February 19, 1997,
	(i) that elected in writing filed with the Minister, before 1998 or before April of the year following the year in which the first contribution to the trust was made, never to have been a qualifying environmental trust, or
	(j) that was at any previous time during its existence not a qualifying environmental trust;
``total pension adjustment reversal'' « facteur d'équivalence rectifié total »	``total pension adjustment reversal'' of a taxpayer for a calendar year has the meaning assigned by regulation;
	(4) Subsection (1) applies after 1997 and, if an election is made by a trust in accordance with paragraph (i) of the definition ``qualifying environmental trust'' in subsection 248(1) of the Act, as enacted by subsection (3),
	(a) the trust is deemed to have never been a mining reclamation trust; and
	(b) notwithstanding subsections 152(4) to (5) of the Act, the Minister of National Revenue may before 2000 make any assessments and reassessments that are necessary to give effect to the election.
	(5) Subsection (2) applies after 1995.
	(6) The definitions ``private foundation'' and ``public foundation'' in subsection 248(1) of the Act, as enacted by subsection (3), apply after 1996.
	(7) The definition ``qualifying environmental trust'' in subsection 248(1) of the Act, as enacted by subsection (3), applies after 1991.
	(8) The definition ``total pension adjustment reversal'' in subsection 248(1) of the Act, as enacted by subsection (3), applies after 1996.
	67. (1) Subsection 250(7) of the Act is replaced by the following:
Residence of a qualifying environmental trust	(7) For the purposes of this Act, where a trust resident in Canada would be a qualifying environmental trust at any time if it were resident at that time in the province in which the site to which the trust relates is situated, the trust is deemed to be resident at that time in that province and in no other province.
	(2) Subsection (1) applies after 1995.
	DIVISION B
	OTHER AMENDMENTS
	68. (1) Section 6 of the Act is amended by adding the following after subsection (16):
Definitions	(17) The definitions in this subsection apply in this subsection and subsection (18).
``disability policy'' « police d'assurance-i nvalidité »	``disability policy'' means a group disability insurance policy that provides for periodic payments to individuals in respect of the loss of remuneration from an office or employment.
``employer'' « employeur »	``employer'' of an individual includes a former employer of the individual.
``top-up disability payment'' « paiement compensatoire pour invalidité »	``top-up disability payment'' in respect of an individual means a payment made by an employer of the individual as a consequence of the insolvency of an insurer that was obligated to make payments to the individual under a disability policy where
	(a) the payment is made to an insurer so that periodic payments made to the individual under the policy will not be reduced because of the insolvency, or will be reduced by a lesser amount, or
	(b) the following conditions are satisfied:
	(i) the payment is made to the individual to replace, in whole or in part, periodic payments that would have been made under the policy to the individual but for the insolvency, and
	(ii) the payment is made under an arrangement by which the individual is required to reimburse the payment to the extent that the individual subsequently receives an amount from an insurer in respect of the portion of the periodic payments that the payment was intended to replace.
	For the purposes of paragraphs (a) and (b), an insurance policy that replaces a disability policy is deemed to be the same policy as, and a continuation of, the disability policy that was replaced.
Group disability benefits - insolvent insurer	(18) Where an employer of an individual makes a top-up disability payment in respect of the individual,
	(a) the payment is, for the purpose of paragraph (1)(a), deemed not to be a benefit received or enjoyed by the individual;
	(b) the payment is, for the purpose of paragraph (1)(f), deemed not to be a contribution made by the employer to or under the disability insurance plan of which the disability policy in respect of which the payment is made is or was a part; and
	(c) if the payment is made to the individual, it is, for the purpose of paragraph (1)(f), deemed to be an amount payable to the individual pursuant to the plan.
	(2) Subsection (1) applies to payments made after August 10, 1994.
	69. (1) Paragraph 8(1)(i) of the Act is amended by striking out the word ``and'' at the end of subparagraph (v), by adding the word ``and'' at the end of subparagraph (vi) and by adding the following after subparagraph (vi):
	(vii) dues to a professions board, the payment of which was required under the laws of a province,
	(2) The portion of paragraph 8(1)(n) of the Act before subparagraph (i) is replaced by the following:
Salary reimbursemen t	(n) an amount paid by or on behalf of the taxpayer in the year pursuant to an arrangement (other than an arrangement described in subparagraph (b)(ii) of the definition ``top-up disability payment'' in subsection 6(17)) under which the taxpayer is required to reimburse any amount paid to the taxpayer for a period throughout which the taxpayer did not perform the duties of the office or employment, to the extent that
	(3) Subsection 8(1) of the Act is amended by adding the following after paragraph (n):
Reimburseme nt of disability payments	(n.1) where,
	(i) as a consequence of the receipt of a payment (in this paragraph referred to as the ``deferred payment'') from an insurer, a payment (in this paragraph referred to as the ``reimbursement payment'') is made by or on behalf of an individual to an employer or former employer of the individual pursuant to an arrangement described in subparagraph (b)(ii) of the definition ``top-up disability payment'' in subsection 6(17), and
	(ii) the reimbursement payment is made
	(A) in the year, other than within the first 60 days of the year if the deferred payment was received in the immediately preceding taxation year, or
	(B) within 60 days after the end of the year, if the deferred payment was received in the year,
	an amount equal to the lesser of
	(iii) the amount included under paragraph 6(1)(f) in respect of the deferred payment in computing the individual's income for any taxation year, and
	(iv) the amount of the reimbursement payment;
	(4) The portion of subsection 8(5) of the Act before paragraph (a) is replaced by the following:
Dues not deductible	(5) Notwithstanding subparagraphs (1)(i)(i), (iv), (vi) and (vii), dues are not deductible under those subparagraphs in computing a taxpayer's income from an office or employment to the extent that they are, in effect, levied
	(5) Paragraph 8(5)(c) of the Act is replaced by the following:
	(c) for any other purpose not directly related to the ordinary operating expenses of the committee or similar body, association, board or trade union, as the case may be.
	(6) Subsections (1) , (4) and (5) apply to the 1996 and subsequent taxation years.

Bill C-28

TAX ON QUALIFYING ENVIRONMENTAL TRUSTS

DIVISION B

OTHER AMENDMENTS