(iii) such portion of the amount determined under this paragraph as was otherwise applied to reduce the amount otherwise determined under this description, and
	(c) the amount, if any, by which
	(i) the total of all amounts that would be determined under paragraph 66.7(4)(a), immediately before the relevant time, 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
	(A) amounts that became receivable at or after the relevant time were not taken into account,
	(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
	(C) paragraph 66.7(4)(a) were read without reference to ``30% of''
	exceeds the total of
	(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 described in subparagraph (i)) if
	(A) amounts that became receivable after the relevant time were not taken into account,
	(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,
	(C) paragraph 66.7(4)(a) were read without reference to ``30% of'', and
	(D) amounts described in subparagraph 66.7(4)(a)(ii) that became receivable at the relevant time were not taken into account, and
	(iii) such portion of the amount otherwise determined under this paragraph as was otherwise applied to reduce the amount otherwise determined under this description,
	(3) Subsections (1) and (2) apply to taxation years that end after February 17, 1987.
	31. (1) Clause 66.7(2)(b)(ii)(B) of the Act is amended by replacing the reference in it to ``subparagraph (10)(h)(iv)'' with ``subparagraph (10)(h)(vi)''.
	(2) The portion of paragraph 66.7(4)(a) of the Act after subparagraph (i) is replaced by the following:
	exceeds the total of
	(ii) all amounts each of which is an amount (other than any portion thereof that can reasonably be considered to result in a reduction of the amount otherwise determined under this paragraph in respect of another original owner of a relevant mining property who is not a predecessor owner of a relevant mining property or who became a predecessor owner of a relevant mining property before the original owner became a predecessor owner of a relevant mining property) that became receivable by a predecessor owner of the particular property or the successor in the year or a preceding taxation year and that
	(A) was included by the predecessor owner or the successor in computing an amount determined under paragraph (a) of the description of F in the definition ``cumulative Canadian development expense'' in subsection 66.2(5) at the end of the year, and
	(B) can reasonably be regarded as attributable to the disposition of a property (in this subparagraph referred to as a ``relevant mining property'') that is the particular property or another Canadian resource property that was acquired from the original owner with the particular property by the successor or a predecessor owner of the particular property, and
	(iii) all amounts each of which is an amount (other than any portion thereof that can reasonably be considered to result in a reduction of the amount otherwise determined under paragraph (5)(a) in respect of the original owner or under this paragraph or paragraph (5)(a) in respect of another original owner of a relevant oil and gas property who is not a predecessor owner of a relevant oil and gas property or who became a predecessor owner of a relevant oil and gas property before the original owner became a predecessor owner of a relevant oil and gas property) that became receivable by a predecessor owner of the particular property or the successor after 1992 and in the year or a preceding taxation year and that
	(A) is designated in respect of the original owner by the predecessor owner or the successor, as the case may be, in prescribed form filed with the Minister within 6 months after the end of the taxation year in which the amount became receivable,
	(B) was included by the predecessor owner or the successor in computing an amount determined under paragraph (a) of the description of F in the definition ``cumulative Canadian oil and gas property expense'' in subsection 66.4(5) at the end of the year, and
	(C) can reasonably be regarded as attributable to the disposition of a property (in this subparagraph referred to as a ``relevant oil and gas property'') that is the particular property or another Canadian resource property that was acquired from the original owner with the particular property by the successor or a predecessor owner of the particular property, and
	(3) Subparagraph 66.7(5)(a)(ii) of the Act is replaced by the following:
	(ii) the total of all amounts each of which is an amount (other than any portion thereof that can reasonably be considered to result in a reduction of the amount otherwise determined under this paragraph or paragraph (4)(a) in respect of another original owner of a relevant oil and gas property who is not a predecessor owner of a relevant oil and gas property or who became a predecessor owner of a relevant oil and gas property before the original owner became a predecessor owner of a relevant oil and gas property) that became receivable by a predecessor owner of the particular property or the successor in the year or a preceding taxation year and that
	(A) was included by the predecessor owner or the successor in computing an amount determined under paragraph (a) of the description of F in the definition ``cumulative Canadian oil and gas property expense'' in subsection 66.4(5) at the end of the year, and
	(B) can reasonably be regarded as attributable to the disposition of a property (in this subparagraph referred to as a ``relevant oil and gas property'') that is the particular property or another Canadian resource property that was acquired from the original owner with the particular property by the successor or a predecessor owner of the particular property, and
	(4) Subsections 66.7(14) and (15) of the Act are replaced by the following:
Disposal of Canadian resource properties	(14) Where in a taxation year a predecessor owner of Canadian resource properties disposes of Canadian resource properties to a corporation in circumstances in which subsection 29(25) of the Income Tax Application Rules or subsection (1), (3), (4) or (5) applies,
	(a) for the purposes of applying any of those subsections to the predecessor owner in respect of its acquisition of any Canadian resource property owned by it immediately before the disposition, it shall be deemed, after the disposition, never to have acquired any such properties except for the purposes of
	(i) determining an amount deductible under subsection (1) or (3) for the year,
	(ii) where the predecessor owner and the corporation dealt with each other at arm's length at the time of the disposition or the disposition was by way of an amalgamation or merger, determining an amount deductible under subsection (4) or (5) for the year, and
	(iii) determining the amount for F in the definition ``cumulative Canadian development expense'' in subsection 66.2(5), the amounts for paragraphs (a) and (b) in the description of L in that definition and the amount for F in the definition ``cumulative Canadian oil and gas property expense'' in subsection 66.4(5); and
	(b) where the corporation or another corporation acquires any of the properties on or after the disposition in circumstances in which subsection (4) or (5) applies, amounts that become receivable by the predecessor owner after the disposition in respect of Canadian resource properties retained by it at the time of the disposition shall, for the purposes of applying subsection (4) or (5) to the corporation or the other corporation in respect of the acquisition, be deemed not to have become receivable by the predecessor owner.
Disposal of foreign resource properties	(15) Where after June 5, 1987 a predecessor owner of foreign resource properties disposes of all or substantially all of its foreign resource properties to a corporation in circumstances in which subsection (2) applies, for the purpose of applying that subsection to the predecessor owner in respect of its acquisition of any of those properties (or other foreign resource properties retained by it at the time of the disposition which were acquired by it in circumstances in which subsection (2) applied), it shall be deemed, after the disposition, never to have acquired the properties.
	(5) Subsections (1) to (3) and subsection 66.7(15) of the Act, as enacted by subsection (4), apply to taxation years that end after February 17, 1987 except that, where a taxpayer files a form referred to in clause 66.7(4)(a)(iii)(A) of the Act, as enacted by subsection (2), with the Minister of National Revenue before the end of the sixth month that begins after the end of the taxpayer's taxation year that includes the day this Act is assented to, the taxpayer shall be deemed to have filed the form in a timely manner.
	(6) Subsection 66.7(14) of the Act, as enacted by subsection (4), applies to dispositions occurring in taxation years that end after February 17, 1987.
	32. (1) Subsection 69(4) of the Act is replaced by the following:
Shareholder appropriations	(4) Where at any time property of a corporation has been appropriated in any manner whatever to or for the benefit of a shareholder of the corporation for no consideration or for consideration that is less than the property's fair market value and a sale of the property at its fair market value would have increased the corporation's income or reduced a loss of the corporation, the corporation shall be deemed to have disposed of the property, and to have received proceeds of disposition therefor equal to its fair market value, at that time.
	(2) Subsection (1) applies to appropriations occurring after December 21, 1992.
	33. (1) Subsection 70(3.1) of the Act is replaced by the following:
Exception	(3.1) For the purposes of this section, ``rights or things'' do not include an interest in a life insurance policy (other than an annuity contract of a taxpayer where the payment therefor was deductible in computing the taxpayer's income because of paragraph 60(l) or was made in circumstances in which subsection 146(21) applied), eligible capital property, land included in the inventory of a business, a Canadian resource property or a foreign resource property.
	(2) Paragraphs 70(5)(a) to (c) of the Act are replaced by the following:
	(a) the taxpayer shall be deemed to have, immediately before the taxpayer's death, disposed of each capital property of the taxpayer and received proceeds of disposition therefor equal to the fair market value of the property immediately before the death;
	(b) any person who as a consequence of the taxpayer's death acquires any property that is deemed by paragraph (a) to have been disposed of by the taxpayer shall be deemed to have acquired it at the time of the death at a cost equal to its fair market value immediately before the death;
	(c) where any depreciable property of the taxpayer of a prescribed class that is deemed by paragraph (a) to have been disposed of is acquired by any person as a consequence of the taxpayer's death (other than where the taxpayer's proceeds of disposition of the property under paragraph (a) are redetermined under subsection 13(21.1)) and the amount that was the capital cost to the taxpayer of the property exceeds the amount determined under paragraph (b) to be the cost to the person thereof, for the purposes of sections 13 and 20 and any regulations made for the purpose of paragraph 20(1)(a),
	(i) the capital cost to the person of the property shall be deemed to be the amount that was the capital cost to the taxpayer of the property, and
	(ii) the excess shall be deemed to have been allowed to the person in respect of the property under regulations made for the purpose of paragraph 20(1)(a) in computing income for taxation years that ended before the person acquired the property; and
	(d) where a property of the taxpayer that was deemed by paragraph (a) to have been disposed of is acquired by any person as a consequence of the taxpayer's death and the taxpayer's proceeds of disposition of the property under paragraph (a) are redetermined under subsection 13(21.1), notwithstanding paragraph (b),
	(i) where the property was depreciable property of a prescribed class and the amount that was the capital cost to the taxpayer of the property exceeds the amount so redetermined under subsection 13(21.1), for the purposes of sections 13 and 20 and any regulations made for the purpose of paragraph 20(1)(a),
	(A) its capital cost to the person shall be deemed to be the amount that was its capital cost to the taxpayer, and
	(B) the excess shall be deemed to have been allowed to the person in respect of the property under regulations made for the purpose of paragraph 20(1)(a) in computing income for taxation years that ended before the person acquired the property, and
	(ii) where the property is land (other than land to which subparagraph (i) applies), its cost to the person shall be deemed to be the amount that was the taxpayer's proceeds of disposition of the land as redetermined under subsection 13(21.1).
	(3) Paragraph 70(5.1)(b) of the Act is replaced by the following:
	(b) subject to paragraph (c), the beneficiary shall be deemed to have acquired a capital property at the time of the taxpayer's death at a cost equal to the proceeds referred to in paragraph (a);
	(4) The portion of paragraph 70(5.1)(c) of the Act before subparagraph (i) is replaced by the following:
	(c) where the beneficiary continues to carry on the business previously carried on by the taxpayer, the beneficiary shall be deemed to have, at the time of the taxpayer's death, acquired an eligible capital property and made an eligible capital expenditure at a cost equal to the total of
	(5) Subsection 70(5.2) of the Act is replaced by the following:
Resource properties and land inventories of a deceased taxpayer	(5.2) Where in a taxation year a taxpayer dies,
	(a) for the purposes of subsection 59(1), paragraph (a) of the description of F in the definition ``cumulative Canadian development expense'' in subsection 66.2(5) and paragraph (a) of the description of F in the definition ``cumulative Canadian oil and gas property expense'' in subsection 66.4(5), the taxpayer shall be deemed to have, immediately before the taxpayer's death, disposed of each Canadian resource property and foreign resource property of the taxpayer and received proceeds of disposition therefor equal to its fair market value immediately before the death;
	(b) notwithstanding paragraph (a), where the taxpayer was resident in Canada immediately before the taxpayer's death, any Canadian resource property or foreign resource property of the taxpayer that is, on or after the death and as a consequence of the death, transferred or distributed to a spouse of the taxpayer described in paragraph (6)(a) or a trust described in paragraph (6)(b) and it can be shown within the period ending 36 months after the death or, where written application therefor has been made to the Minister by the taxpayer's legal representative within that period, within such longer period as the Minister considers reasonable in the circumstances, that the property vested indefeasibly in the spouse or trust, as the case may be,
	(i) the taxpayer shall be deemed to have, immediately before the death, disposed of the property and received proceeds of disposition therefor equal to such amount as is specified by the taxpayer's legal representative in the return of income of the taxpayer filed under paragraph 150(1)(b), not exceeding its fair market value immediately before the death, and
	(ii) the spouse or trust, as the case may be, shall be deemed to have acquired the property at the time of the death at a cost equal to the amount included in the taxpayer's income under subsection 59(1) or included in the amount determined under paragraph (a) of the description of F in the definition ``cumulative Canadian development expense'' in subsection 66.2(5) or paragraph (a) of the description of F in the definition ``cumulative Canadian oil and gas property expense'' in subsection 66.4(5), as the case may be, in respect of the property;
	(c) the taxpayer shall be deemed to have, immediately before the taxpayer's death, disposed of each property that was land included in the inventory of a business of the taxpayer and received proceeds of disposition therefor equal to its fair market value immediately before the death; and
	(d) notwithstanding paragraph (c), where the taxpayer was resident in Canada immediately before the taxpayer's death, any property that is land included in the inventory of a business of the taxpayer is, on or after the death and as a consequence of the death, transferred or distributed to a spouse of the taxpayer described in paragraph (6)(a) or a trust described in paragraph 6)(b) and it can be shown within the period ending 36 months after the death of the taxpayer or, where written application therefor has been made to the Minister by the taxpayer's legal representative within that period, within such longer period as the Minister considers reasonable in the circumstances, that the property vested indefeasibly in the spouse or trust, as the case may be,
	(i) the taxpayer shall be deemed to have, immediately before the death, disposed of the land and received proceeds of disposition therefor equal to its cost amount to the taxpayer immediately before the death, and
	(ii) the spouse or trust, as the case may be, shall be deemed to have acquired the property at the time of the death at a cost equal to those proceeds.
	(6) Paragraph 70(6)(d) of the Act is replaced by the following:
	(d) subject to paragraph (d.1), the taxpayer shall be deemed to have, immediately before the taxpayer's death, disposed of the property and received proceeds of disposition therefor equal to
	(i) where the property was depreciable property of a prescribed class, the lesser of the capital cost and the cost amount to the taxpayer of the property immediately before the death, and