where
	A is the number of months each of which is a month all or part of which is during the period that begins the day after the election filing date and ends the day the election or amended election is filed with the Minister; and
	B is the total of all amounts each of which is the taxable capital gain of the elector or a spouse of the elector that results from the application of subsection (19) to the property or the business in respect of which the election is made less, where subsection (27) applies to the election, the total of all amounts each of which would, if the Act were read without reference to subsections (20) and (27), be the taxable capital gain of the elector or a spouse of the elector that resulted from the application of subsection (19) to the property or the business.
Unpaid balance of penalty	(30) The Minister shall, with all due dispatch, examine each election to which subsection (26) or (27) applies, assess the penalty payable and send a notice of assessment to the elector who made the election, and the elector shall pay forthwith to the Receiver General the amount, if any, by which the penalty so assessed exceeds the total of all amounts previously paid on account of that penalty.
	(13) Subsection (1) applies after 1995.
	(14) Subsections (2) and (12) apply to the 1994 and subsequent taxation years except that, for the 1994 and 1995 taxation years, paragraph (b) of the description of A in the definition ``annual gains limit'' in subsection 110.6(1) of the Act, as enacted by subsection (2), shall be read as follows:
	(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 capital losses if
	(i) the only properties referred to in paragraph 3(b) were properties disposed of by the individual after 1984 and, except where the property was at the time of the disposition a qualified small business corporation share or qualified farm property of the individual, before February 23, 1994,
	(i.1) no amount were included under paragraph 3(b) in respect of
	(A) a taxable capital gain of the individual that resulted from an election made under subsection (19) by a personal trust unless the individual was a beneficiary under the trust on February 22, 1994, and
	(B) that portion of a taxable capital gain referred to in clause (A) that can reasonably be regarded as being in respect of an amount that is included in computing the individual's income because of an interest in the trust that was acquired by the individual after February 22, 1994,
	(i.2) except for the purpose of determining the individual's share of a taxable capital gain of a partnership for its fiscal period that includes February 22, 1994 or a taxable capital gain of the individual resulting from a designation made under section 104 by a trust for its taxation year that includes that day, in determining the individual's taxable capital gain for the 1995 taxation year from the disposition of a property (other than a qualified small business corporation share or qualified farm property), this Act were read without reference to subparagraphs 40(1)(a)(ii) and 44(1)(e)(ii), and
	(ii) the individual's capital gains and capital losses for the year from dispositions of non-qualifying real property of the individual were equal to the individual's eligible real property gains and eligible real property losses, respectively, for the year from those dispositions, and
	(15) In applying the Act to the 1994 and 1995 taxation years,
	(a) paragraph 110.6(2)(d) of the Act shall be read as follows:
	(d) the amount that would be determined in respect of the individual for the 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 the individual after 1984 otherwise than because of an election made under subsection (19).
	and
	(b) paragraph 110.6(2.1)(d) of the Act shall be read as follows:
	(d) the amount that would be determined in respect of the individual for the year under paragraph 3(b) (other than an amount included in determining the amount in respect of the individual under paragraph (2)(d)) in respect of capital gains and capital losses if the only properties referred to in paragraph 3(b) were qualified small business corporation shares disposed of by the individual after June 17, 1987 otherwise than because of an election made under subsection (19).
	(16) Subsections (3) to (8), (10) and (11) apply to the 1996 and subsequent taxation years and, in applying subsection 110.6(3) of the Act to the 1994 and 1995 taxation years, the portion of subsection 110.6(3) before paragraph (a) shall be read as follows:
	(3) In computing the taxable income for a taxation year of an individual (other than a trust) who was resident in Canada throughout the year and who disposed of property (other than property the capital gain or capital loss from the disposition of which is included in determining an amount under paragraph (2)(d) or (2.1)(d)) there may be deducted such amount as the individual claims, not exceeding the least of
	(17) Subsection (9) applies to taxation years that end after February 22, 1994 except that, for taxation years that end after that day and before 1997, paragraph 110.6(12)(b) of the Act, as enacted by that subsection, shall be read as follows:
	(b) the total of
	(i) the least of
	(A) the amount, if any, determined in respect of the trust for that year under paragraph 3(b) in respect of capital gains and losses,
	(A.1) 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 losses if
	(I) the only properties referred to in that paragraph were properties (other than properties referred to in subparagraph (ii)) disposed of by it after 1984 and before February 23, 1994,
	(II) the trust's capital gains and capital losses for the year from dispositions of non-qualifying real property of the trust were equal to its eligible real property gains and eligible real property losses, respectively, for that year from those dispositions,
	(III) no amount were included under paragraph 3(b) in respect of a capital gain of the trust that resulted from an election made under subsection (19) by another trust unless the trust was a beneficiary under the other trust on February 22, 1994, and
	(IV) except for the purpose of determining the trust's share of a taxable capital gain of a partnership for the partnership's fiscal period that includes February 22, 1994 or a taxable capital gain of the trust resulting from a designation made under section 104 by another trust for the other trust's taxation year that includes that day, in determining the trust's taxable capital gain for a taxation year that begins after that day from the disposition of a property (other than a qualified small business corporation share or qualified farm property), this Act were read without reference to subparagraphs 40(1)(a)(ii) and 44(1)(e)(ii), and
	(B) the amount, if any, by which $75,000 exceeds the total of
	(I) the total of all amounts each of which is an amount deducted under subsection (3) in computing the taxable income of the taxpayer's spouse for the taxation year in which the spouse died or a preceding taxation year, and
	(II) the total of all amounts each of which is an amount determined under subparagraph (3)(a)(ii) or (iii) in respect of the taxpayer's spouse for the taxation year in which the spouse died, and
	(ii) 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 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
	33. (1) Subsection 118(2) of the Act is replaced by the following:
Age credit	(2) For the purpose of computing the tax payable under this Part for a taxation year by an individual who, before the end of the year, has attained the age of 65 years, there may be deducted the amount determined by the formula
	A x ($3,236 - B)
	where
	A is the appropriate percentage for the year; and
	B is 15% of the amount, if any, by which the individual's income for the year exceeds $25,921.
	(2) Subsection (1) applies to the 1994 and subsequent taxation years except that, notwithstanding section 117.1 of the Act, the value of B in subsection 118(2) of the Act, as enacted by subsection (1), shall, for the 1994 taxation year, be determined as the lesser of $1,741 and 7.5% of the amount, if any, by which the individual's income for the year exceeds $25,921.
	34. (1) Subsection 118.1(3) of the Act is replaced by the following:
Deduction by individuals for gifts	(3) For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted such amount as the individual claims not exceeding the amount determined by the formula
	(A x B) + [C x (D - B)]
	where
	A is the appropriate percentage for the year;
	B is the lesser of $200 and the individual's total gifts for the year;
	C is the highest percentage referred to in subsection 117(2) that applies in determining tax that might be payable under this Part for the year; and
	D is the individual's total gifts for the year.
	(2) Subsection (1) applies to the 1994 and subsequent taxation years.
	35. (1) The portion of subsection 125(5) of the Act before paragraph (a) is replaced by the following:
Special rules for business limit	(5) Notwithstanding subsections (2) to (4),
	(2) Section 125 of the Act is amended by adding the following after subsection (5):
Business limit reduction	(5.1) Notwithstanding subsections (2) to (5), a Canadian-controlled private corporation's business limit for a particular taxation year ending in a calendar year is the amount, if any, by which its business limit otherwise determined for the particular year exceeds the amount determined by the formula
	A x B/$10,000
	where
	A is the amount that would, but for this subsection, be the corporation's business limit for the particular year; and
	B is
	(a) where the corporation is not associated with any other corporation in the particular year, the amount that would, but for subsections 181.1(2) and (4), be the corporation's tax payable under Part I.3 for its preceding taxation year, and
	(b) where the corporation is associated with one or more other corporations in the particular year, the total of all amounts each of which would, but for subsections 181.1(2) and (4), be the tax payable under Part I.3 by the corporation or any such other corporation for its last taxation year ending in the preceding calendar year.
	(3) Subsections (1) and (2) apply to taxation years that end after June 1994 except that, in its application to taxation years that begin before July 1994, subsection 125(5.1) of the Act, as enacted by subsection (2), shall be read as follows:
	(5.1) Notwithstanding subsections (2) to (5), a Canadian-controlled private corporation's business limit for a particular taxation year ending in a calendar year is the amount, if any, by which its business limit otherwise determined for the particular year exceeds the amount determined by the formula
	A x B/$10,000 x C/D
	where
	A is the amount that would, but for this subsection, be the corporation's business limit for the particular year;
	B is
	(a) where the corporation is not associated with any other corporation in the particular year, the lesser of $10,000 and the amount that would, but for subsections 181.1(2) and (4), be the corporation's tax payable under Part I.3 for its preceding taxation year, and
	(b) where the corporation is associated with one or more other corporations in the particular year, the lesser of $10,000 and the total of all amounts each of which would, but for subsections 181.1(2) and (4), be the tax payable under Part I.3 by the corporation or any such other corporation for its last taxation year ending in the preceding calendar year;
	C is the number of days in the particular year that are after June 1994; and
	D is the number of days in the particular year.
	(4) Notwithstanding any other provision of the Income Tax Act or of this Act, nothing in this section shall affect the amount of interest payable under the Income Tax Act in respect of a corporation for any period or part thereof that is before July 1994.
	36. (1) The definition ``tax for the year otherwise payable under this Part'' in subsection 126(7) of the Act is replaced by the following:
``tax for the year otherwise payable under this Part'' « impôt payable par ailleurs pour l'année en vertu de la présente partie »	``tax for the year otherwise payable under this Part'' means
	(a) in paragraph (1)(b) and subsection (3), the amount determined by the formula
	A - B
	where
	A is the amount that would be the tax payable under this Part for the year if that tax were determined without reference to sections 120.1 and 120.3 and before making any deduction under any of sections 121, 122.3, 125 to 127 and 127.2 to 127.41, and
	B is the amount, if any, deemed by subsection 120(2) to have been paid on account of tax payable under this Part,
	(b) in subparagraph (2)(c)(i) and paragraph (2.2)(b), the tax for the year payable under this Part (determined without reference to sections 120.1 and 120.3 and before making any deduction under any of sections 121, 122.3, 124 to 127 and 127.2 to 127.41), and
	(c) in subsection (2.1), the tax for the year payable under this Part (determined without reference to subsection 120(1) and sections 120.1 and 120.3 and before making any deduction under any of sections 121, 122.3, 124 to 127 and 127.2 to 127.41);
	(2) Paragraph (g) of the definition ``non-business-income tax'' in subsection 126(7) of the Act is replaced by the following:
	(g) that can reasonably be attributed to a taxable capital gain or a portion thereof in respect of which the taxpayer or a spouse of the taxpayer has claimed a deduction under section 110.6,
	(3) Subsection (1) applies to taxation years that end after February 22, 1994.
	(4) Subsection (2) applies to the 1994 and subsequent taxation years.
	37. (1) Paragraph (a) of the definition ``certified property'' in subsection 127(9) of the Act is amended by striking out the word ``or'' at the end of subparagraph (ii) and by replacing subparagraph (iii) with the following:
	(iii) after 1988 and before 1995,
	(iv) after 1994 and before 1996 where
	(A) the property is acquired by the taxpayer for use in a project that was substantially advanced by or on behalf of the taxpayer, as evidenced in writing, before February 22, 1994, and