Stop-loss rules not applicable	(5.5) Subsections (3) to (4) and (4.2) do not apply to the disposition of a share by a taxpayer in a taxation year that begins after October 1994 where
	(7) The portion of subsection 112(5.6) of the Act before paragraph (a) is replaced by the following:
Stop-loss rules restricted	(5.6) In determining whether any of subsec tions (3) to (4) and (4.2) apply to reduce a loss of a taxpayer from the disposition of a share, this Act shall be read without reference to paragraphs (3.01)(b) and (3.11)(b), subclauses (3.2)(a)(ii)(C)(I) and (3.3)(a)(ii)(C)(I) and paragraphs (3.31)(b), (3.32)(b), (4.01)(b), (4.21)(b) and (4.22)(b) where
	(8) Paragraph 112(6)(a) of the Act is replaced by the following:
	(a) ``dividend'' and ``taxable dividend'' do not include a capital gains dividend (within the meaning assigned by subsection 131(1)) or any dividend received by a taxpayer on which the taxpayer was required to pay tax under Part VII of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, as it read on March 31, 1977;
	(9) Subsection 112(7) of the Act is re placed by the following:
Rules where shares exchanged	(7) Where a share (in this subsection referred to as the ``new share'') has been acquired in exchange for another share (in this subsection referred to as the ``old share'') in a transaction to which section 51, 86 or 87 applies, for the purposes of the application of any of subsections (3) to (3.32) in respect of a disposition of the new share, the new share is deemed to be the same share as the old share, except that
	(a) any dividend received on the old share is deemed for those purposes to have been received on the new share only to the extent of the proportion of the dividend that
	(i) the shareholder's adjusted cost base of the new share immediately after the exchange
	is of
	(ii) the shareholder's adjusted cost base of all new shares immediately after the exchange acquired in exchange for the old share; and
	(b) the amount, if any, by which a loss from the disposition of the new share is reduced because of the application of this subsection shall not exceed the proportion of the shareholder's adjusted cost base of the old share immediately before the exchange that
	(i) the shareholder's adjusted cost base of the new share immediately after the exchange
	is of
	(ii) the shareholder's adjusted cost base of all new shares, immediately after the exchange, acquired in exchange for the old share.
	(10) Subsections 112(3) to (3.32) of the Act, as enacted by subsection (1), apply to dispositions that occur after April 26, 1995, other than a disposition of a share of the capital stock of a particular corporation owned by a taxpayer on April 26, 1995
	(a) that occurs pursuant to an agreement in writing made before April 27, 1995;
	(b) that is made to the particular corpora tion pursuant to an agreement in writing made before April 1997, where
	(i) on April 26, 1995, a corporation, or a partnership of which a corporation was a member, was a beneficiary of a life insurance policy that insured the life of the taxpayer, the taxpayer's spouse or, where the taxpayer is a trust described in paragraph 104(4)(a) or (a.1) of the Act in respect of a spouse, the spouse, and
	(ii) it was reasonable to conclude on April 26, 1995 that the proceeds of the life insurance policy were primarily intended to be used directly or indi rectly to fund, in whole or in part, the redemption, acquisition or cancella tion of the share;
	(c) where the taxpayer dies after April 25, 1995, that is made by the taxpayer's estate before 1997;
	(d) where the taxpayer is an estate the first taxation year of which ended after April 25, 1995, that is made by the estate before 1997; or
	(e) where the taxpayer is a trust described in paragraph 104(4)(a) or (a.1) of the Act in respect of a spouse, that is made by the trust after the spouse's death and before 1997.
	(11) A share acquired in exchange for another share in a transaction to which section 51, 85, 86 or 87 of the Act applies
	(a) is deemed, for the purpose of subsec tion (10), to have been owned by a taxpayer at each time that the other share was owned by the taxpayer; and
	(b) is deemed, for the purpose of subpara graph (10)(b)(ii), to be the same share as the other share.
	(12) Subsections 112(4), (4.01) and (4.2) to (4.22) of the Act, as enacted by subsection (1), and subsections (2) to (7) and (9) apply to dispositions that occur after April 26, 1995.
	(13) Subsections 112(4.1) and (4.11) of the Act, as enacted by subsection (1), apply to taxation years that end after April 26, 1995.
	(14) Subsection (8) applies after April 26, 1995.
	58. (1) Paragraph 115(1)(b) of the Act is replaced by the following:
	(b) the only taxable capital gains and allowable capital losses referred to in paragraph 3(b) were taxable capital gains and allowable capital losses from disposi tions at any time in the year of property or an interest therein (in this Act referred to as ``taxable Canadian property'') that was
	(i) real property situated in Canada,
	(ii) a capital property used by the non- resident person in carrying on a business in Canada, other than
	(A) property used in carrying on an insurance business, and
	(B) ships and aircraft used principally in international traffic and personal property pertaining to their operation if the country in which the non-resi dent person is resident grants substan tially similar relief for the year to persons resident in Canada,
	(iii) where the non-resident person is an insurer, any capital property that is property used by it in the year in, or held by it in the year in the course of, carrying on an insurance business in Canada,
	(iv) a share of the capital stock of a corporation (other than a mutual fund corporation ) resident in Canada that is not listed on a prescribed stock exchange,
	(v) a share of the capital stock of a non-resident corporation that is not listed on a prescribed stock exchange where, at any particular time during the 12-month period that ends at that time,
	(A) the fair market value of all of the properties of the corporation each of which was
	(I) a taxable Canadian property,
	(II) a Canadian resource property,
	(III) a timber resource property,
	(IV) an income interest in a trust resident in Canada, or
	(V) an interest in or option in respect of a property described in any of subclauses (II) to (IV), whether or not the property exists,
	was more than 50% of the fair market value of all of its properties, and
	(B) more than 50% of the fair market value of the share is derived directly or indirectly from one or any combina tion of
	(I) real property situated in Canada,
	(II) Canadian resource properties, and
	(III) timber resource properties,
	(vi) a share otherwise described in sub paragraph (iv) or (v) that is listed on a prescribed stock exchange, or a share of the capital stock of a mutual fund corpo ration, if, at any time during the 5-year period that ends at that time, the non-resi dent person, persons with whom the non-resident person did not deal at arm's length, or the non-resident person togeth er with all such persons owned 25% or more of the issued shares of any class of the capital stock of the corporation that issued the share,
	(vii) an interest in a partnership where, at any particular time during the 12-month period that ends at that time, the fair market value of all of the properties of the partnership each of which was
	(A) a taxable Canadian property,
	(B) a Canadian resource property,
	(C) a timber resource property,
	(D) an income interest in a trust resident in Canada, or
	(E) an interest in or option in respect of a property described in clauses (B) to (D), whether or not that property exists,
	was more than 50% of the fair market value of all of its properties,
	(viii) a capital interest in a trust (other than a unit trust) resident in Canada,
	(ix) a unit of a unit trust (other than a mutual fund trust) resident in Canada,
	(x) a unit of a mutual fund trust if, at any particular time during the 5-year period that ends at that time , not less than 25% of the issued units of the trust belonged to the non-resident person, to persons with whom the non-resident person did not deal at arm's length, or to the non-resi dent person and persons with whom the non-resident person did not deal at arm's length,
	(xi) an interest in a non-resident trust where, at any particular time during the 12-month period that ends at that time,
	(A) the fair market value of all of the properties of the trust each of which was
	(I) a taxable Canadian property,
	(II) a Canadian resource property,
	(III) a timber resource property,
	(IV) an income interest in a trust resident in Canada, or
	(V) an interest in or option in respect of a property described in sub clauses (II) to (IV), whether or not the property exists,
	was more than 50% of the fair market value of all of its properties, and
	(B) more than 50% of the fair market value of the interest is derived directly or indirectly from one or any combina tion of
	(I) real property situated in Canada,
	(II) Canadian resource properties, and
	(III) timber resource properties, or
	(xii) a property deemed by any provision of this Act to be taxable Canadian property,
	but does not include a share of the capital stock of a non-resident-owned investment corporation if, on the first day of the year, the corporation did not own taxable Cana dian property, Canadian resource property, timber resource property nor an income interest in a trust resident in Canada, and
	(2) Subsection 115(3) of the Act is re placed by the following.
Property deemed to include interests and options	(3) For the purpose of this section, a property described in subparagraphs (1)(b)(i) to (xii) is deemed to include any interest therein or option in respect thereof, whether or not such property is in existence.
	(3) Subsections (1) and (2) apply after April 26, 1995, except in respect of the disposition of a property before 1996
	(a) to a person who was obliged on April 26, 1995 to acquire the property pursuant to the terms of an agreement in writing made on or before that day (and, for the purpose of this paragraph, a person shall be considered not to be obliged to acquire property where the person can be ex cused from the obligation if there is a change to the Act or if there is an adverse assessment under the Act); or
	(b) pursuant to a prospectus or similar document filed with the relevant securi ties authority before April 27, 1995.
	59. (1) The portion of subsection 116(1) of the Act before paragraph (a) is replaced by the following:
Disposition by non-resident person of certain property	116. (1) Where a non-resident person proposes to dispose of any property that would, if the non-resident person disposed of it, be taxable Canadian property of that person (other than property described in subsection (5.2) and excluded property) the non-resident person may, at any time before the disposition, send to the Minister a notice setting out
	(2) The portion of subsection 116(3) of the Act before paragraph (a) is replaced by the following:
Notice to Minister	(3) Every non-resident person who in a taxation year disposes of any taxable Cana dian property of that person (other than property described in subsection (5.2) and excluded property) shall, not later than 10 days after the disposition, send to the Minister, by registered mail, a notice setting out
	(3) The portion of subsection 116(5.2) of the Act before paragraph (a) is replaced by the following:
Certificates for dispositions	(5.2) Where a non-resident person has, in respect of a disposition or proposed disposi tion to a taxpayer in a taxation year of property (other than excluded property) that is a life insurance policy in Canada, a Canadian resource property, a property (other than capital property) that is real property situated in Canada, a timber resource property, depre ciable property that is or would, if the non-resident person disposed of it, be a taxable Canadian property of the non-resident person or any interest in, or option in respect of, a property to which this subsection applies (whether or not the property exists) ,
	(4) Paragraphs 116(6)(a) and (b) of the Act are replaced by the following:
	(a) property described in subparagraph 115(1)(b)(xii) ;
	(b) a share of a class of the capital stock of a corporation that is listed on a prescribed stock exchange, or an interest in the share ;
	(5) Subsections (1) and (2) apply after April 26, 1995.
	(6) Subsection (3) applies to dispositions that occur after 1996.
	(7) Subsection (4) applies after April 26, 1995, except in respect of the disposition of a property before 1996
	(a) to a person who was obliged on April 26, 1995 to acquire the property pursuant to the terms of an agreement in writing made on or before that day (and, for the purpose of this paragraph, a person shall be considered not to be obliged to acquire property where the person can be ex cused from the obligation if there is a change to the Act or if there is an adverse assessment under the Act); or