(6) The portion of subsection 96(3) of the Act before paragraph (a) is replaced by the following:
Agreement or election of partnership members	(3) Where a taxpayer who was a member of a partnership during a fiscal period has, for any purpose relevant to the computation of the taxpayer's income from the partnership for the fiscal period, made or executed an agreement, designation or an election under or in respect of the application of any of subsections 13(4), (15) and (16) and 14(6), section 15.2 , subsec tions 20(9) and 21(1) to (4), section 22, subsection 29(1), section 34, clause 37(8)(a)(ii)(B), subsections 44(1) and (6), 50(1) and 80(5), (9), (10) and (11), section 80.04 and subsections 97(2) and 249.1(4) and (6) that, but for this subsection, would be a valid agreement, designation or election,
	(7) Subsections (1) and (2) apply after November 1994.
	(8) Subsection (3) applies to partnership interests acquired by a taxpayer after April 26, 1995, other than where
	(a) the interest in the partnership is acquired by the taxpayer pursuant to the terms of an agreement in writing entered into by the taxpayer before April 27, 1995, or the interest was acquired by the taxpayer
	(i) before 1996 where
	(A) all or substantially all of the property of the partnership is
	(I) a film production prescribed for the purpose of subparagraph 96(2.2)(d)(ii) of the Act, or
	(II) an interest in one or more partnerships all or substantially all of the property of which is a film production prescribed for the purpose of subparagraph 96(2.2)(d)(ii) of the Act,
	(B) the principal photography of the production began before 1996, or, in the case of a production that is a television series, the principal pho tography of one episode of the series began before 1996, and
	(C) the principal photography of the production was completed before March 1996,
	(ii) before 1996 where it can reasonably be considered that the funds raised by the partnership through the issue of the interest were used by the partnership to acquire before 1996 property in cluded in Class 24, 27 or 34 in Schedule II to the Income Tax Regulations and the property was
	(A) acquired pursuant to an agree ment in writing entered into by the partnership before April 27, 1995, or
	(B) under construction by or on behalf of the partnership on April 26, 1995,
	(iii) before July 1995 pursuant to the terms of a document that is a prospec tus, preliminary prospectus or regis tration statement filed before April 27, 1995 with a public authority in Canada pursuant to and in accordance with the securities legislation of Canada or of any province and, where required by law, accepted for filing by the public authority, and the funds so raised were expended before 1996 on expenditures contemplated by the document, or
	(iv) before July 1995 pursuant to the terms of an offering memorandum distributed as part of an offering of securities where
	(A) the memorandum contained a complete or substantially complete description of the securities contem plated in the offering as well as the terms and conditions of the offering,
	(B) the memorandum was distrib uted before April 27, 1995,
	(C) solicitations in respect of the sale of the securities contemplated by the memorandum were made before April 27, 1995,
	(D) the sale of the securities was substantially in accordance with the memorandum, and
	(E) the funds were spent before 1996 in accordance with the memoran dum; and
	(b) the following conditions are met:
	(i) in the case of an interest
	(A) acquired by the taxpayer pur suant to the terms of an agreement in writing entered into by the taxpayer before April 27, 1995, or
	(B) to which subparagraph (a)(iii) or (iv) applies
	that is a tax shelter for which section 237.1 of the Act requires an identifica tion number to be obtained, an identifi cation number was obtained before April 27, 1995, and
	(ii) there is no agreement or other arrangement under which the taxpay er's obligations with respect to the interest can be changed, reduced or waived if there is a change to the Act or if there is an adverse assessment under the Act.
	(9) Subsection (4) applies to partnership interests acquired by a taxpayer after April 26, 1995, except that it does not apply where
	(a) the interest was acquired by the taxpayer
	(i) pursuant to the terms of an agree ment in writing entered into by the taxpayer before April 27, 1995,
	(ii) before July 1995 pursuant to the terms of a document that is a prospec tus, preliminary prospectus or regis tration statement filed before April 27, 1995 with a public authority in Canada pursuant to and in accordance with the securities legislation of Canada or of any province and, where required by law, accepted for filing by the public authority, and the funds so raised were expended before 1996 on expenditures contemplated by the document, or
	(iii) before July 1995 pursuant to the terms of an offering memorandum distributed as part of an offering of securities where
	(A) the memorandum contained a complete or substantially complete description of the securities contem plated in the offering as well as the terms and conditions of the offering,
	(B) the memorandum was distrib uted before April 27, 1995,
	(C) solicitations in respect of the sale of the securities contemplated by the memorandum were made before April 27, 1995,
	(D) the sale of the securities was substantially in accordance with the memorandum, and
	(E) the funds were spent before 1996 in accordance with the memoran dum; and
	(b) the following conditions are met:
	(i) in the case of an interest that is a tax shelter for which section 237.1 of the Act requires an identification number to be obtained, an identification num ber was obtained before April 27, 1995, and
	(ii) there is no agreement or other arrangement under which the taxpay er's obligations with respect to the interest can be changed, reduced or waived if there is a change to the Act or if there is an adverse assessment under the Act.
	(10) Subsection (5) applies to fiscal peri ods that end after November 1994.
	(11) Subsection (6) applies to fiscal peri ods that end after December 2, 1992, except that
	(a) with respect to fiscal periods that ended after that day and before February 22, 1994, the portion of subsection 96(3) of the Act enacted by subsection (6) shall be read as follows:
	(3) Where a taxpayer who was a member of a partnership during a fiscal period has, for any purpose relevant to the computation of the taxpayer's income from the partnership for the fiscal period, made or executed an election under or in respect of the application of any of subsections 13(4), (15) and (16) and 14(6), section 15.2, subsections 20(9) and 21(1) to (4), section 22, subsection 29(1), section 34, clause 37(8)(a)(ii)(B) and subsections 44(1) and (6), 50(1) and 97(2) that, but for this subsection, would be a valid election,
	and
	(b) before 1995, the portion of subsection 96(3) of the Act enacted by subsection (6) shall be read without reference to subsec tions 249.1(4) and (6) of the Act.
	49. (1) The portion of subsection 97(2) of the Act before paragraph (a) is replaced by the following:
Rules where election by partners	(2) Notwithstanding any other provision of this Act, other than subsection 13(21.2) , where a taxpayer at any time disposes of any property that is a capital property, Canadian resource property, foreign resource property, eligible capital property or inventory of the taxpayer to a partnership that immediately after that time is a Canadian partnership of which the taxpayer is a member, if the taxpayer and all the other members of the partnership jointly so elect in prescribed form within the time referred to in subsection 96(4),
	(2) Subsections 97(3) and (3.1) of the Act are repealed.
	(3) Subject to section 156, subsections (1) and (2) apply to dispositions of property that occur after April 26, 1995.
	50. (1) Paragraph 98.1(1)(a) of the Act is replaced by the following:
	(a) until such time as all the taxpayer's rights (other than a right to a share of the income or loss of the partnership under an agreement referred to in subsection 96(1.1)) to receive any property of or from the partnership in satisfaction of the taxpayer's interest in the partnership immediately before the time at which the taxpayer ceased to be a member of the partnership are satisfied in full, that interest (in this section referred to as a ``residual interest'') is, subject to sections 70, 110.6 and 128.1 but notwithstanding any other section of this Act, deemed not to have been disposed of by the taxpayer and to continue to be an interest in the partnership;
	(2) Subsection (1) applies to the 1994 and subsequent taxation years.
	51. (1) Subsection 100(4) of the Act is replaced by the following:
Loss re interest in partnership	(4) Notwithstanding paragraph 39(1)(b), the capital loss of a taxpayer from the disposition at any time of an interest in a partnership is deemed to be the amount of the loss otherwise determined minus the total of all amounts each of which is the amount by which the taxpayer's share of the partner ship's loss, in respect of a share of the capital stock of a corporation that was property of a particular partnership at that time, would have been reduced under subsection 112(3.1) if the fiscal period of every partnership that in cludes that time had ended immediately before that time and the particular partnership had disposed of the share immediately before the end of that fiscal period for proceeds equal to its fair market value at that time.
	(2) Subsection (1) applies to dispositions that occur after April 26, 1995.
	52. (1) Subparagraph 104(4)(a)(i.1) of the Act is replaced by the following:
	(i.1) is a trust that was created by the will of a taxpayer who died after 1971 to which property was transferred in cir cumstances to which paragraph 70(5.2)(b) or (d) or (6)(d) applied and that, immediately after any such property vested indefeasibly in the trust as a consequence of the death of the taxpayer, was a trust, or
	(2) Subsection 104(6) of the Act is amended by striking out the word ``and'' at the end of paragraph (a.1) and by adding the following after paragraph (a.1):
	(a.2) where the taxable income of the trust for the year is subject to tax under this Part because of paragraph 146(4)(c) or subsec tion 146.3(3.1), such part of the amount that, but for this subsection, would be the income of the trust for the year as was paid in the year to a beneficiary; and
	(3) Section 104 of the Act is amended by adding the following after subsection (14):
Late, amended or revoked election	(14.01) A trust and a preferred beneficiary under the trust may jointly make an election, or amend or revoke an election made, under subsection (14) where the election, amend ment or revocation
	(a) is made solely because of an election or revocation to which subsection 110.6(25), (26) or (27) applies; and
	(b) is filed in prescribed manner with the Minister when the election or revocation referred to in paragraph (a) is filed.
Late, amended or revoked election	(14.02) Where a trust and a preferred beneficiary under the trust have made an election or amended or revoked an election in accordance with subsection (14.01),
	(a) the election or the amended election, as the case may be, is deemed to have been made on time for the purpose of subsection (14); and
	(b) the election that was revoked is deemed, otherwise than for the purposes of this subsection and subsection (14.01), never to have been made.
	(4) Subsection 104(20) of the Act is replaced by the following:
Designation in respect of non-taxable dividends	(20) The portion of the total of all amounts, each of which is the amount of a dividend (other than a taxable dividend) paid on a share of the capital stock of a corporation resident in Canada to a trust during a taxation year of the trust throughout which the trust was resident in Canada, that can reasonably be considered (having regard to all the circumstances includ ing the terms and conditions of the trust arrangement) to be part of an amount that became payable in the year to a particular beneficiary under the trust shall be designated by the trust in respect of the particular beneficiary in the return of the trust's income for the year for the purposes of subclause 53(2)(h)(i.1)(B)(II), paragraphs 107(1)(c) and (d) and subsections 112(3.1), (3.2), (3.31) and (4.2) .
	(5) Section 104 of the Act is amended by adding the following after subsection (21):
Late, amended or revoked designation	(21.01) A trust that has filed its return of income for its taxation year that includes February 22, 1994 may subsequently desig nate an amount under subsection (21), or amend or revoke a designation made under that subsection where the designation, amend ment or revocation
	(a) is made solely because of an increase or decrease in the net taxable capital gains of the trust for the year that results from an election or revocation to which subsection 110.6(25), (26) or (27) applies; and
	(b) is filed with the Minister, with an amended return of income for the year, when the election or revocation referred to in paragraph (a) is filed with the Minister.
Late, amended or revoked designation	(21.02) A designation, amendment or re vocation under subsection (21.01) that affects an amount determined in respect of a benefi ciary under subsection (21.2) may be made only where the trust
	(a) designates an amount, or amends or revokes a designation made, under subsec tion (21.2) in respect of the beneficiary; and
	(b) files the designation, amendment or revocation referred to in paragraph (a) with the Minister when required by paragraph (21.01)(b).
Late, amended or revoked designation	(21.03) Where a trust designates an amount, or amends or revokes a designation, under subsection (21) or (21.2) in accordance with subsection (21.01),
	(a) the designation or amended designation, as the case may be, is deemed to have been made in the trust's return of income for the trust's taxation year that includes February 22, 1994; and
	(b) the designation that was revoked is deemed, other than for the purposes of this subsection and subsections (21.01) and (21.02), never to have been made.
	(6) Subsection (1) applies to acquisitions and dispositions that occur after 1992.
	(7) Subsection (2) applies to the 1996 and subsequent taxation years.
	(8) Subsections (3) and (5) apply to taxation years that include February 22, 1994.
	(9) Subsection (4) applies after April 26, 1995.
	53. (1) The portion of subsection 106(2) of the Act before paragraph (a) is replaced by the following:
Disposition by taxpayer of income interest	(2) Where in a taxation year a taxpayer disposes of an income interest in a trust (otherwise than in a qualifying exchange as defined in subsection 132.2(2)) ,
	(2) Subsection 106(3) of the Act is re placed by the following:
Proceeds of disposition of income interest	(3) For greater certainty, where at any time any property of a trust has been distributed by the trust to a taxpayer who was a beneficiary under the trust in satisfaction of all or any part of the taxpayer's income interest in the trust (otherwise than in a qualifying exchange as defined in subsection 132.2(2)) , the trust is deemed to have disposed of the property for proceeds of disposition equal to the fair market value of the property at that time.
	(3) Subsections (1) and (2) apply after June 1994.