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3. a designated benefit in respect
of a registered retirement income
fund (in this clause having the
meaning assigned by
subsection 146.3(1))
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as a consequence of the death of an
individual of whom the taxpayer is
a child or grandchild, and
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(III) the amount, if any, by which the
amount determined for the year
under subclause (II) in respect of the
taxpayer exceeds the amount, if any,
by which
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1. the total of all designated
benefits of the taxpayer for the
year in respect of registered
retirement income funds
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2. the total of all amounts that
would be eligible amounts of the
taxpayer for the year in respect of
those funds (within the meaning
that would be assigned by
subsection 146.3(6.11) if the
taxpayer were described in
paragraph (b) thereof), and
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(4) Clause 60(l)(v)(B.2) of the Act is
replaced by the following:
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(B.2) all eligible amounts of the
taxpayer for the year in respect of
registered retirement income funds
(within the meaning assigned by
subsection 146.3(6.11)),
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(5) Clause 60(l)(v)(D) of the Act is
replaced by the following:
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(D) the amount, if any, by which
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(I) the amount received by the
taxpayer out of or under a registered
retirement income fund under
which the taxpayer is the annuitant
and included because of
subsection 146.3(5) in computing
the taxpayer's income for the year
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(II) the amount, if any, by which the
minimum amount (within the
meaning assigned by
subsection 146.3(1)) under the
fund for the year exceeds the total of
all amounts received out of or under
the fund in the year by an individual
who was an annuitant under the fund
before the taxpayer became the
annuitant under the fund and that
were included because of subsection
146.3(5) in computing that
individual's income for the year, and
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(6) Paragraph 60(n) of the Act is
amended by adding the following after
subparagraph (i):
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(i.1) any amount described in
subparagraph 56(1)(a)(ii),
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(7) Subparagraph 60(n)(ii.2) of the Act is
repealed.
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(8) Subsection (1) applies to the 1992 and
subsequent taxation years.
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(9) Subsections (2), (3) and (5) apply to
the 1993 and subsequent taxation years
except that, for the 1993 to 1996 taxation
years, subclause 60(l)(v)(D)(I) of the Act, as
enacted by subsection (5), shall be read as
follows:
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(I) the amount received by the
taxpayer out of or under a registered
retirement income fund under
which the taxpayer is the annuitant
(or, where the taxpayer's spouse
died before 1993, under which the
spouse was the annuitant) and
included because of
subsection 146.3(5) in computing
the taxpayer's income for the year
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(10) Subsection (4) applies to the 1993
and subsequent taxation years and
subparagraph 60(l)(v) of the Act shall apply
to a taxpayer for the 1992 taxation year as
if it were read without reference to clause
(B.2), unless the taxpayer elects otherwise
by notifying the Minister of National
Revenue in writing.
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(11) Subsection (6) applies to repayments
made after 1990.
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(12) Subsection (7) applies to repayments
made after October 1991.
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27. (1) Section 63 of the Act is amended by
adding the following after subsection (3):
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| Commuter's
child care
expense
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(4) Where in a taxation year a person resides
in Canada near the boundary between Canada
and the United States and while so resident
incurs expenses for child care services that
would be child care expenses if
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(a) the definition ``child care expense'' in
subsection (3) were read without reference
to the words ``in Canada'', and
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(b) the reference in paragraph (b) of the
definition ``child care expense'' in
subsection (3) to ``resident of Canada''
were read as ``person'',
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those expenses (other than expenses paid for
a child's attendance at a boarding school or
camp outside Canada) shall be deemed to be
child care expenses for the purpose of this
section if the child care services are provided
at a place that is closer to the person's
principal place of residence by a reasonably
accessible route, having regard to the
circumstances, than any place in Canada
where such child care services are available
and, in respect of those expenses, subsection
(1) shall be read without reference to the
words ``and contains, where the payee is an
individual, that individual's Social Insurance
Number''.
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(2) Subsection (1) applies to the 1992 and
subsequent taxation years.
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28. (1) The definition ``principal-business
corporation'' in subsection 66(15) of the Act
is replaced by the following:
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``principal-bu
siness
corporation''
société
exploitant une
entreprise
principale;
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``principal-business corporation'' means a
corporation the principal business of which
is any of, or a combination of,
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(a) the production, refining or marketing
of petroleum, petroleum products or
natural gas,
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(a.1) exploring or drilling for petroleum
or natural gas,
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(b) mining or exploring for minerals,
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(c) the processing of mineral ores for the
purpose of recovering metals or minerals
from the ores,
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(d) the processing or marketing of metals
or minerals that were recovered from
mineral ores and that include metals or
minerals recovered from mineral ores
processed by the corporation,
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(e) the fabrication of metals,
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(f) the operation of a pipeline for the
transmission of oil or gas,
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(f.1) the production or marketing of
calcium chloride, gypsum, kaolin,
sodium chloride or potash, and
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(g) the manufacturing of products, where
the manufacturing involves the
processing of calcium chloride, gypsum,
kaolin, sodium chloride or potash,
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or a corporation all or substantially all of the
assets of which are shares of the capital
stock or indebtedness of one or more
principal-business corporations that are
related to the corporation (otherwise than
because of a right referred to in
paragraph 251(5)(b));
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(2) Subsection (1) applies to the 1993 and
subsequent taxation years, except that
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(a) a corporation may elect that
subsection (1) not apply to its 1993 to
1996 taxation years by so notifying the
Minister of National Revenue in writing
before the end of the sixth month after the
month in which this Act is assented to;
and
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(b) it does not apply to transactions and
events that occur before the 1993
taxation year.
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29. (1) The portion of the description of F
in the definition ``cumulative Canadian
development expense'' in subsection 66.2(5)
of the Act after paragraph (a) is replaced by
the following:
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(b) the amount, if any, by which
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(i) the total of all amounts that would
be determined under paragraph
66.7(4)(a), immediately before the
time (in this paragraph referred to as
the ``relevant time'') when such
proceeds of disposition became
receivable, in respect of the taxpayer
and an original owner of the particular
property (or of any other property
acquired by the taxpayer with the
particular property in circumstances in
which subsection 66.7(4) applied and
in respect of which the proceeds of
disposition became receivable by the
taxpayer at the relevant time) if
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(A) amounts that became receivable
at or after the relevant time were not
taken into account,
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(B) each designation made under
subparagraph 66.7(4)(a)(iii) in
respect of an amount that became
receivable before the relevant time
were made before the relevant time,
and
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(C) paragraph 66.7(4)(a) were read
without reference to ``30% of''
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(ii) all amounts that would be
determined under paragraph
66.7(4)(a) at the relevant time in
respect of the taxpayer and an original
owner of the particular property (or of
that other property) if
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(A) amounts that became receivable
after the relevant time were not
taken into account,
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(B) each designation made under
subparagraph 66.7(4)(a)(iii) in
respect of an amount that became
receivable at or before the relevant
time were made before the relevant
time,
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(C) paragraph 66.7(4)(a) were read
without reference to ``30% of'', and
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(D) amounts described in
subparagraph 66.7(4)(a)(iii) that
became receivable at the relevant
time were not taken into account,
and
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(iii) such portion of the amount
otherwise determined under this
paragraph as was otherwise applied to
reduce the amount otherwise
determined under this description,
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(2) The description of L in the definition
``cumulative Canadian development
expense'' in subsection 66.2(5) of the Act is
replaced by the following:
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L is the amount by which the total of all
amounts determined under subsection
66.4(1) in respect of a taxation year of the
taxpayer ending at or before that time
exceeds the total of all amounts each of
which is the least of
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(a) the amount that would be
determined under paragraph
66.7(4)(a), at a time (hereafter in
this description referred to only as
the ``particular time'') that is the end
of the latest taxation year of the
taxpayer ending at or before that
time, in respect of the taxpayer as
successor in respect of a disposition
(in this description referred to as the
``original disposition'') of Canadian
resource property by a person who is
an original owner of the property
because of the original disposition,
if
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(i) that paragraph were read
without reference to ``30% of'',
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(ii) where the taxpayer has
disposed of all or part of the
property in circumstances in
which subsection 66.7(4) applied,
that subsection continued to
apply to the taxpayer in respect of
the original disposition as if
subsequent successors were the
same person as the taxpayer, and
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(iii) each designation made under
subparagraph 66.7(4)(a)(iii) in
respect of an amount that became
receivable before the particular
time were made before the
particular time,
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(b) the amount, if any, by which the
total of all amounts each of which
became receivable at or before the
particular time and before 1993 by
the taxpayer and is included in
computing the amount determined
under subparagraph 66.7(5)(a)(ii) in
respect of the original disposition
exceeds the amount, if any, by
which
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(i) where the taxpayer disposed of
all or part of the property before
the particular time in
circumstances in which
subsection 66.7(5) applied, the
amount that would be determined
at the particular time under
subparagraph 66.7(5)(a)(i) in
respect of the original disposition
if that subparagraph continued to
apply to the taxpayer in respect of
the original disposition as if
subsequent successors were the
same person as the taxpayer, and
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(ii) in any other case, the amount
determined at the particular time
under subparagraph 66.7(5)(a)(i)
in respect of the original
disposition
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(iii) the amount that would be
determined at the particular time
under subparagraph
66.7(5)(a)(ii) in respect of the
original disposition if that
subparagraph were read without
reference to the words ``or the
successor'', wherever they
appear therein, and if amounts
that became receivable after 1992
were not taken into account, and
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(i) after the original disposition
and at or before the particular
time, the taxpayer disposed of all
or part of the property in
circumstances in which
subsection 66.7(4) applied,
otherwise than by way of an
amalgamation or merger or solely
because of the application of
paragraph 66.7(10)(c), and
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(ii) the winding-up of the
taxpayer began at or before that
time or the taxpayer's disposition
referred to in subparagraph (i)
(other than a disposition under an
agreement in writing entered into
before December 22, 1992)
occurred after December 21,
1992,
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(3) Subsection (1) applies to taxation
years that end after February 17, 1987.
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(4) Subsection (2) applies to taxation
years that end after December 21, 1992,
except that where a taxpayer so elects by
notifying the Minister of National Revenue
in writing before the end of the sixth month
that begins after the end of the taxpayer's
taxation year that includes the day on which
this Act is assented to, the description of L
in the definition ``cumulative Canadian
development expense'' in subsection 66.2(5)
of the Act, as enacted by subsection (2), shall
apply in respect of the taxpayer to taxation
years that end after February 17, 1987 and,
notwithstanding subsections 152(4) to (5) of
the Act, such assessments and
determinations in respect of any taxation
year shall be made as are necessary to give
effect to the election.
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30. (1) The portion of subsection 66.4(1)
of the Act before paragraph (a) is replaced
by the following:
|
|
| Recovery of
costs
|
66.4 (1) For the purposes of the description
of B in the definition ``cumulative Canadian
oil and gas property expense'' in
subsection (5) and the description of L in the
definition ``cumulative Canadian
development expense'' in subsection 66.2(5)
and for the purpose of subparagraph
64(1.2)(a)(ii) of the Income Tax Act, chapter
148 of the Revised Statutes of Canada, 1952,
as it applies to dispositions occurring before
November 13, 1981, the amount determined
under this subsection in respect of a taxpayer
for a taxation year is the amount, if any, by
which
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(2) The portion of the description of F in
the definition ``cumulative Canadian oil
and gas property expense'' in
subsection 66.4(5) of the Act after
paragraph (a) is replaced by the following:
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(b) the amount, if any, by which
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(i) the total of all amounts that
would be determined under
paragraph 66.7(5)(a), immediately
before the time (in this paragraph
and paragraph (c) referred to as the
``relevant time'') when such
proceeds of disposition became
receivable, in respect of the
taxpayer and an original owner of
the particular property (or of any
other property acquired by the
taxpayer with the particular
property in circumstances in which
subsection 66.7(5) applied and in
respect of which the proceeds of
disposition became receivable by
the taxpayer at the relevant time) if
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(A) amounts that became
receivable at or after the relevant
time were not taken into account,
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(B) each designation made under
subparagraph 66.7(4)(a)(iii) in
respect of an amount that became
receivable before the relevant
time were made before the
relevant time, and
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|
(C) paragraph 66.7(5)(a) were
read without reference to ``10%
of''
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(ii) all amounts that would be
determined under paragraph
66.7(5)(a) at the relevant time in
respect of the taxpayer and an
original owner of the particular
property (or of that other property
described in subparagraph (i)) if
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(A) amounts that became
receivable after the relevant time
were not taken into account,
|
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(B) each designation made under
subparagraph 66.7(4)(a)(iii) in
respect of an amount that became
receivable at or before the
relevant time were made before
the relevant time, and
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(C) paragraph 66.7(5)(a) were
read without reference to ``10%
of'', and
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