(27) Subsection (4) applies to taxation years that end after December 2, 1992 and begin before 1996.
	(28) Subsections 127(11.6) to (11.8) of the Act, as enacted by subsection (24), apply to expenditures incurred in taxation years that begin after 1995.
	(29) Subsection 127(26) of the Act, as enacted by subsection (25), applies to amounts that are incurred at any time, except that it does not apply to amounts that are paid on or before the day that is 90 days after the day this Act is assented to.
	31. (1) Paragraph (f) of the definition ``refundable investment tax credit'' in subsection 127.1(2) of the Act is replaced by the following:
	(f) the total of
	(i) the portion of the amount required by subsection 127(10.1) to be added in computing the taxpayer's investment tax credit at the end of the year that is in respect of qualified expenditures (other than expenditures of a capital nature) incurred by the taxpayer in the year, and
	(ii) all amounts determined under paragraph (a.1) of the definition ``investment tax credit'' in subsection 127(9) in respect of expenditures for which an amount is included in subparagraph (i)
	(2) Paragraph 127.1(2.01)(a) of the Act is replaced by the following:
	(a) the total of
	(i) the portion of the amount required by subsection 127(10.1) to be added in computing the taxpayer's investment tax credit at the end of the year that is in respect of qualified expenditures (other than expenditures of a current nature) incurred by the taxpayer in the year, and
	(ii) all amounts determined under paragraph (a.1) of the definition ``investment tax credit'' in subsection 127(9) in respect of expenditures for which an amount is included in subparagraph (i)
	(3) Paragraph 127.1(2.01)(c) of the Act is replaced by the following:
	(c) the total of
	(i) the portion of the amount required by subsection 127(10.1) to be added in computing the taxpayer's investment tax credit at the end of the year that is in respect of qualified expenditures (other than expenditures of a capital nature) incurred by the taxpayer in the year, and
	(ii) all amounts determined under paragraph (a.1) of the definition ``investment tax credit'' in subsection 127(9) in respect of expenditures for which an amount is included in subparagraph (i)
	(4) Subsections (1) to (3) apply to taxation years that begin after 1995.
	32. (1) Subparagraph 129(1)(a)(i) of the Act is replaced by the following:
	(i) 1/3 of all taxable dividends paid by the corporation on shares of its capital stock in the year and at a time when it was a private corporation, and
	(2) Subsections 129(3) to (5) of the Act are replaced by the following:
Definition of ``refundable dividend tax on hand''	(3) In this section, ``refundable dividend tax on hand'' of a corporation at the end of a taxation year means the amount, if any, by which the total of
	(a) where the corporation was a Canadian-controlled private corporation throughout the year, the least of
	(i) the amount determined by the formula
	A - B
	where
	A is 26 2/3% of the corporation's aggregate investment income for the year, and
	B is the amount, if any, by which
	(I) the amount deducted under subsection 126(1) from the tax for the year otherwise payable by it under this Part
	exceeds
	(II) 9 1/3% of its foreign investment income for the year,
	(ii) 26 2/3% of the amount, if any, by which the corporation's taxable income for the year exceeds the total of
	(A) the least of the amounts determined under paragraphs 125(1)(a) to (c) in respect of the corporation for the year,
	(B) 25/9 of the total of amounts deducted under subsection 126(1) from its tax for the year otherwise payable under this Part, and
	(C) 10/4 of the total of amounts deducted under subsection 126(2) from its tax for the year otherwise payable under this Part, and
	(iii) the corporation's tax for the year payable under this Part determined without reference to section 123.2,
	(b) the total of the taxes under Part IV payable by the corporation for the year, and
	(c) where the corporation was a private corporation at the end of its preceding taxation year, the corporation's refundable dividend tax on hand at the end of that preceding year
	exceeds
	(d) the corporation's dividend refund for its preceding taxation year.
Definitions	(4) The definitions in this subsection apply in this section.
``aggregate investment income'' « revenu de placement total »	``aggregate investment income'' of a corporation for a taxation year means the amount, if any, by which the total of all amounts, each of which is
	(a) the amount, if any, by which
	(i) the eligible portion of the corporation's taxable capital gains for the year
	exceeds the total of
	(ii) the eligible portion of its allowable capital losses for the year, and
	(iii) the amount, if any, deducted under paragraph 111(1)(b) in computing its taxable income for the year, or
	(b) the corporation's income for the year from a source that is a property, other than
	(i) exempt income,
	(ii) an amount included under subsection 12(10.2) in computing the corporation's income for the year,
	(iii) the portion of any dividend that was deductible in computing the corporation's taxable income for the year, and
	(iv) income that, but for paragraph 108(5)(a), would not be income from a property,
	exceeds the total of all amounts, each of which is the corporation's loss for the year from a source that is a property.
``eligible portion'' « fraction admissible »	``eligible portion'' of a corporation's taxable capital gains or allowable capital losses for a taxation year is the total of all amounts each of which is the portion of a taxable capital gain or an allowable capital loss, as the case may be, of the corporation for the year from a disposition of a property that, except where the property was a designated property (within the meaning assigned by subsection 89(1)), cannot reasonably be regarded as having accrued while the property, or a property for which it was substituted, was property of a corporation other than a Canadian-controlled private corporation, an investment corporation, a mortgage investment corporation or a mutual fund corporation.
``foreign investment income'' « revenu de placement étranger »	``foreign investment income'' of a corporation for a taxation year is the amount that would be its aggregate investment income for the year if
	(a) every amount of its income, loss, capital gain or capital loss for the year that can reasonably be regarded as being from a source in Canada were nil,
	(b) no amount were deducted under paragraph 111(1)(b) in computing its taxable income for the year, and
	(c) this Act were read without reference to paragraph (a) of the definition ``income'' or ``loss'' in this subsection.
``income'' or ``loss'' « perte », « revenu »	``income'' or ``loss'' of a corporation for a taxation year from a source that is a property
	(a) includes the income or loss from a specified investment business carried on by it in Canada other than income or loss from a source outside Canada, but
	(b) does not include the income or loss from any property
	(i) that is incident to or pertains to an active business carried on by it, or
	(ii) that is used or held principally for the purpose of gaining or producing income from an active business carried on by it.
	(3) Subsections (1) and (2) apply to taxation years that end after June 1995 except that, in their application to such taxation years that began before July 1995,
	(a) subparagraph 129(1)(a)(i) of the Act, as enacted by subsection (1), shall be read as follows:
	(i) an amount in respect of taxable dividends paid by the corporation on shares of its capital stock in the year and at a time when it was a private corporation equal to the total of
	(A) 1/4 of all such dividends paid before July 1995, and
	(B) 1/3 of all such dividends paid after June 1995,
	and
	(b) in computing the amount determined under each of subparagraphs 129(3)(a)(i) and (ii) of the Act, as enacted by subsection (2), there shall be deducted an amount equal to that proportion of 1/4 of the amount otherwise determined under the subparagraph that the number of days in the year that are before July 1995 is of the number of days in the year.
	33. (1) Paragraph 131(5)(a) of the Act is replaced by the following:
	(a) its refundable dividend tax on hand at the end of the year (within the meaning assigned by subsection 129(3)) shall be determined without reference to paragraph (a) of that subsection; and
	(2) Paragraph 131(11)(b) of the Act is replaced by the following:
	(b) the definition ``aggregate investment income'' in subsection 129(4) shall be read without reference to paragraph (a) of that definition in its application to taxation years that end after that time;
	(3) Subsections (1) and (2) apply to taxation years that end after June 1995.
	34. (1) The definition ``RRSP dollar limit'' in subsection 146(1) of the Act is replaced by the following:
``RRSP dollar limit'' « plafond REER »	``RRSP dollar limit'' for a calendar year means
	(a) for years other than 1996, the money purchase limit for the preceding year, and
	(b) for 1996, $13,500;
	(2) Subsection (1) applies after 1995.
	35. (1) The portion of subsection 146.01(3) of the Act before paragraph (a) is replaced by the following:
Repayment of eligible amount	(3) An individual may designate a single amount for a taxation year in prescribed form filed with the individual's return of income required to be filed for the year or, if a return of income for the year is not required to be filed, filed with the Minister on or before the individual's filing-due date for the year, where the amount does not exceed the lesser of
	(2) Subsection (1) applies to the 1995 and subsequent taxation years.
	36. (1) The definition ``money purchase limit'' in subsection 147.1(1) of the Act is amended by striking out the word ``and'' at the end of paragraph (f) and by replacing paragraph (g) with the following:
	(g) for 1996, $13,500,
	(h) for 1997, $14,500,
	(i) for 1998, $15,500, and
	(j) for each year after 1998, the greater of
	(i) the product of
	(A) $15,500, and
	(B) the quotient obtained when the average wage for the year is divided by the average wage for 1998,
	rounded to the nearest multiple of $10, or, if that product is equidistant from 2 such consecutive multiples, to the higher thereof, and
	(ii) the money purchase limit for the preceding year;
	(2) Subsection (1) applies after 1995.
	37. (1) The portion of subparagraph 149(1)(j)(ii) of the French version of the Act before clause (A) is replaced by the following:
	(ii) elle a dépensé pour un total, au minimum, de 90 % de l'excédent éventuel de son revenu brut pour la période sur le total des montants qu'elle a payés au cours de la période par l'effet du paragraphe (7.1), des sommes au Canada dont chacune constitue :
	(2) Clause 149(1)(j)(ii)(A) of the Act is replaced by the following:
	(A) an expenditure on scientific research and experimental development (within the meaning that would be assigned by paragraph 37(8)(a) if subsection 37(8) were read without reference to paragraph 37(8)(d)) directly undertaken by or on behalf of the corporation, or
	(3) The portion of subparagraph 149(1)(j)(ii) of the English version of the Act after clause (B) is replaced by the following: