(4) Subsection (1) applies to the 1994 and subsequent taxation years except that, in its application to the 1994 and 1995 taxation years, the portion of paragraph 98(1)(c) of the Act after subparagraph (ii) shall be read as follows:
	the amount of the excess shall be deemed to be a gain of the taxpayer for the taxpayer's taxation year that includes that time from a disposition at that time of that interest and, for the purposes of section 110.6, that interest shall be deemed to have been disposed of by the taxpayer at that time.
	(5) Subsections (2) and (3) apply to acquisitions of property that occur after February 22, 1994.
	27. (1) The portion of paragraph 98.1(1)(c) of the Act after subparagraph (ii) is replaced by the following:
	the amount of the excess shall be deemed to be a gain of the taxpayer, for the taxpayer's taxation year that includes that time, from a disposition at that time of that residual interest; and
	(2) Subsection (1) applies to the 1994 and subsequent taxation years except that, in its application to the 1994 and 1995 taxation years, the portion of paragraph 98.1(1)(c) of the Act after subparagraph (ii) shall be read as follows:
	the amount of the excess shall be deemed to be a gain of the taxpayer, for the taxpayer's taxation year that includes that time, from a disposition at that time of that residual interest and, for the purposes of section 110.6, the residual interest shall be deemed to have been disposed of by the taxpayer at that time; and
	28. (1) Subsection 104(21.2) of the Act is replaced by the following:
Beneficiaries' taxable capital gains	(21.2) Where, for the purposes of subsection (21), a personal trust designates an amount in respect of a beneficiary in respect of its net taxable capital gains for a taxation year (in this subsection referred to as the ``designation year''),
	(a) the trust shall in its return of income under this Part for the designation year designate an amount in respect of its eligible taxable capital gains, if any, for the designation year in respect of the beneficiary equal to the amount determined in respect of the beneficiary under each of subparagraphs (b)(i) and (ii); and
	(b) the beneficiary shall, for the purposes of sections 3, 74.3 and 111 as they apply for the purposes of section 110.6, be deemed to have a taxable capital gain for the beneficiary's taxation year in which the designation year ends
	(i) from a disposition of capital property that is qualified farm property of the beneficiary equal to the amount determined by the formula
	A x B x C D x E
	and
	(ii) from a disposition of capital property that is a qualified small business corporation share of the beneficiary equal to the amount determined by the formula
	A x B x F D x E
	where
	A is the lesser of
	(iii) the amount determined by the formula
	G - H
	where
	G is the total of amounts designated under subsection (21) for the designation year by the trust, and
	H is the total of amounts designated under subsection (13.2) for the designation year by the trust, and
	(iv) the trust's eligible taxable capital gains for the designation year,
	B is the amount, if any, by which the amount designated under subsection (21) for the designation year by the trust in respect of the beneficiary exceeds the amount designated under subsection (13.2) for the year by the trust in respect of the beneficiary,
	C is the amount, if any, that would be determined under paragraph 3(b) for the designation year in respect of the trust's capital gains and capital losses if the only properties referred to in that paragraph were qualified farm properties of the trust disposed of by it after 1984,
	D is the total of all amounts each of which is the amount determined for B for the designation year in respect of a beneficiary under the trust,
	E is the total of the amounts determined for C and F for the designation year in respect of the beneficiary, and
	F is the amount, if any, that would be determined under paragraph 3(b) for the designation year in respect of the trust's capital gains and capital losses if the only properties referred to in that paragraph were qualified small business corporation shares of the trust, other than qualified farm property, disposed of by it after June 17, 1987,
	and for the purposes of section 110.6, those capital properties shall be deemed to have been disposed of by the beneficiary in that taxation year of the beneficiary.
	(2) Subsection (1) applies to trusts' taxation years that begin after February 22, 1994 and, in applying subsection 104(21.2) of the Act to a trust's taxation year that includes that day,
	(a) the portion of subsection 104(21.2) before paragraph (a) shall be read as follows:
	(21.2) Where, for the purposes of subsection (21), a trust (other than a mutual fund trust) designates an amount in respect of a beneficiary in respect of its net taxable capital gains for a taxation year (in this subsection referred to as the ``designation year''),
	(b) the descriptions of A, B and C in paragraph 104(21.2)(b) shall be read as follows:
	A is the lesser of
	(i) the amount determined by the formula
	H - I
	where
	H is the total of amounts designated under subsection (21) for the designation year by the trust, and
	I is the total of amounts designated under subsection (13.2) for the designation year by the trust, and
	(ii) the trust's eligible taxable capital gains for the designation year,
	B is the amount, if any, by which the amount designated under subsection (21) for the designation year by the trust in respect of the beneficiary exceeds the amount designated under subsection (13.2) for the year by the trust in respect of the beneficiary,
	C is the total of all amounts each of which is the amount determined for B for the designation year in respect of a beneficiary under the trust,
	and
	(c) the portion of subsection 104(21.2) after paragraph (b) shall be read as follows:
	and for the purposes of section 110.6, each such taxable capital gain of a beneficiary shall be deemed to be a taxable capital gain of the beneficiary for the beneficiary's taxation year in which the designation year ends from the disposition of a property that occurred on February 22, 1994.
	29. (1) Clause 107(2)(f)(ii)(B) of the Act is replaced by the following:
	(B) the amount to be included under subparagraph 14(1)(a)(v) or paragraph 14(1)(b) in computing the taxpayer's income
	(2) Subsection (1) applies to distributions of property made after February 22, 1994.
	30. (1) The Act is amended by adding the following after section 107.2:
Treatment of beneficiaries under mining reclamation trusts	107.3 (1) Where a taxpayer is a beneficiary under a mining reclamation trust in a taxation year of the trust (in this subsection referred to as the ``trust's year'') that ends in a particular taxation year of the taxpayer,
	(a) subject to paragraph (b), the taxpayer's income, non-capital loss and net capital loss for the particular year shall be computed as if the amount of the income or loss of the trust for the trust's year from any source or from sources in a particular place were the income or loss of the taxpayer from that source or from sources in that particular place for the particular year, to the extent of the portion thereof that can reasonably be considered to be the taxpayer's share of such income or loss; and
	(b) where the taxpayer is non-resident at any time in the particular year and an income or loss described in paragraph (a) or an amount to which paragraph 12(1)(z.1) or (z.2) applies would not otherwise be included in computing the taxpayer's taxable income or taxable income earned in Canada, as the case may be, notwithstanding any other provision of this Act the income, the loss or the amount shall be attributed to the carrying on of business in Canada by the taxpayer through a fixed place of business located in the province in which the mine to which the trust relates is situated.
Transfers to beneficiaries	(2) Where property of a mining reclamation trust is transferred at any time to a beneficiary under the trust in satisfaction of all or any part of the beneficiary's interest as a beneficiary under the trust,
	(a) the trust shall be deemed to have disposed of the property at that time for proceeds of disposition equal to its fair market value at that time; and
	(b) the beneficiary shall be deemed to have acquired the property at that time at a cost equal to its fair market value at that time.
Ceasing to be a mining reclamation trust	(3) Where a trust ceases at any time to be a mining reclamation trust,
	(a) the taxation year of the trust that would otherwise have included that time shall be deemed to have ended at that time and a new taxation year of the trust shall be deemed to have begun immediately after that time;
	(b) the trust shall be deemed to have disposed immediately before that time of each property held by the trust immediately after that time for proceeds of disposition equal to its fair market value at that time and to have reacquired immediately after that time each such property for an amount equal to that fair market value;
	(c) each beneficiary under the trust immediately before that time shall be deemed to have received at that time from the trust an amount equal to the percentage of the fair market value of the properties of the trust immediately after that time that can reasonably be considered to be the beneficiary's interest in the trust; and
	(d) each beneficiary under the trust shall be deemed to have acquired immediately after that time an interest in the trust at a cost equal to the amount deemed by paragraph (c) to have been received by the beneficiary from the trust.
Application	(4) Subsection 104(13) and sections 105 to 107 do not apply to a trust with respect to a taxation year during which it is a mining reclamation trust.
	(2) Subsection (1) applies to taxation years that end after February 22, 1994.
	31. (1) The definitions ``eligible real property gain'', ``eligible real property loss'' and ``non-qualifying real property'' in subsection 108(1) of the Act are repealed.
	(2) The definition ``eligible taxable capital gains'' in subsection 108(1) of the Act is replaced by the following:
``eligible taxable capital gains'' « gains en capital imposables admissibles »	``eligible taxable capital gains'' of a personal trust for a taxation year means the lesser of
	(a) its annual gains limit (within the meaning assigned by subsection 110.6(1)) for the year, and
	(b) the amount determined by the formula
	A - B
	where
	A is its cumulative gains limit (within the meaning assigned by subsection 110.6(1)) at the end of the year, and
	B is the total of all amounts designated under subsection 104(21.2) by the trust in respect of beneficiaries for taxation years before that year;
	(3) Subsections (1) and (2) apply to taxation years that begin after February 22, 1994.
	32. (1) The definitions ``eligible real property gain'', ``eligible real property loss'' and ``non-qualifying real property'' in subsection 110.6(1) of the Act are repealed.
	(2) Paragraph (b) of the description of A in the definition ``annual gains limit'' in subsection 110.6(1) of the Act is replaced by the following:
	(b) the amount that would be determined in respect of the individual for the year under paragraph 3(b) in respect of capital gains and losses if the only properties referred to in that paragraph were qualified farm properties disposed of by the individual after 1984 and qualified small business corporation shares disposed of by the individual after June 17, 1987, and
	(3) Subsection 110.6(3) of the Act is repealed.
	(4) The portion of subsection 110.6(4) of the Act before paragraph (a) is replaced by the following:
Maximum capital gains deduction	(4) Notwithstanding subsections (2) and (2.1), the total amount that may be deducted under this section in computing an individual's taxable income for a taxation year shall not exceed the amount, if any, by which $375,000 exceeds the total of
	(5) The portion of subsection 110.6(5) of the Act after paragraph (b) is replaced by the following:
	for the purposes of subsections (2) and (2.1) the individual shall be deemed to have been resident in Canada throughout the particular year.
	(6) The portion of subsection 110.6(6) of the Act before paragraph (a) is replaced by the following:
Failure to report capital gain	(6) Notwithstanding subsections (2) and (2.1), where an individual has a capital gain for a taxation year from the disposition of a capital property and knowingly or under circumstances amounting to gross negligence
	(7) The portion of subsection 110.6(7) of the Act before paragraph (a) is replaced by the following:
Deduction not permitted	(7) Notwithstanding subsections (2) and (2.1), where an individual has a capital gain for a taxation year from the disposition of property as part of a series of transactions or events
	(8) Subsection 110.6(8) of the Act is replaced by the following:
Deduction not permitted	(8) Notwithstanding subsections (2) and (2.1), where an individual has a capital gain for a taxation year from the disposition of a property and it can reasonably be concluded, having regard to all the circumstances, that a significant part of the capital gain is attributable to the fact that dividends were not paid on a share (other than a prescribed share) or that dividends paid on such a share in the year or in any preceding taxation year were less than 90% of the average annual rate of return thereon for that year, no amount in respect of that capital gain shall be deducted under this section in computing the individual's taxable income for the year.
	(9) Paragraph 110.6(12)(b) of the Act is replaced by the following:
	(b) the amount, if any, that would be determined in respect of the trust for that year under paragraph 3(b) in respect of capital gains and capital losses if the only properties referred to in that paragraph were qualified farm properties disposed of by it after 1984 and qualified small business corporation shares disposed of by it after June 17, 1987, and
	(10) Subsection 110.6(17) of the Act is replaced by the following: