(b) pursuant to a prospectus or similar document filed with the relevant securi ties authority before April 27, 1995.

60. (1) The description of B in subsection 118(2) of the Act is replaced by the follow ing:

B is 15% of the amount, if any, by which the individual's income for the year would ex ceed $25,921 if no amount were included in respect of a gain from a disposition of prop erty to which section 79 applies in comput ing that income.

(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 shall, for the 1994 taxation year, be deter mined as the lesser of $1,741 and 7.5% of the amount, if any, by which the individu al's income for the year would exceed $25,921 if no amount were included in respect of a gain from a disposition of property to which section 79 of the Act applies in computing that income.

61. (1) The portion of subsection 118.4(2) of the Act before paragraph (a) is replaced by the following:

References to ``medical doctors'', etc.

(2) For the purposes of sections 63, 118.2 and 118.3, a reference to a medical doctor , medical practitioner, dentist, pharmacist, nurse or optometrist is a reference to a person authorized to practice as such,

(2) Subsection (1) applies to taxation years that end after November 1991.

62. (1) Paragraph 118.5(1)(a) of the Act is amended by striking out the word ``or'' at the end of subparagraph (iii.1), by adding the word ``or'' at the end of subparagraph (iv) and by adding the following after subparagraph (iv):

      (v) are paid on the individual's behalf, or are fees in respect of which the individual is or was entitled to receive a reimburse ment, under a program of Her Majesty in right of Canada designed to assist ath letes, where the payment or reimburse ment is not included in computing the individual's income;

(2) Subsection (1) applies to the 1994 and subsequent taxation years.

63. (1) The Act is amended by adding the following after section 118.94:

Credits in year of bankruptcy

118.95 Notwithstanding sections 118 to 118.9, for the purpose of computing an individual's tax payable under this Part for a taxation year that ends in a calendar year in which the individual becomes bankrupt, the individual shall be allowed only

    (a) such of the deductions as the individual is entitled to under subsection 118(3) and sections 118.1, 118.2, 118.5, 118.6 and 118.7 as can reasonably be considered wholly applicable to the taxation year, and

    (b) such part of the deductions as the individual is entitled to under sections 118 (other than subsection 118(3)), 118.3, 118.8 and 118.9 as can reasonably be considered applicable to the taxation year,

except that the total of the amounts so deduct ible for all taxation years of the individual in the calendar year under any of those provi sions shall not exceed the amount that would have been deductible under that provision in respect of the calendar year if the individual had not become bankrupt.

(2) Subsection (1) applies to bankruptcies that occur after April 26, 1995.

64. (1) Paragraph 120.2(4)(a) of the Act is replaced by the following:

    (a) an individual's return of income filed under subsection 70(2), paragraph 104(23)(d) or 128(2)(f) or subsection 150(4); or

(2) Subsection (1) applies to taxation years that begin after April 26, 1995.

65. Subparagraph 122.2(1)(b)(i) of the Act, as it reads in its application to the 1992 taxation year, is replaced by the following:

      (i) the total of all amounts each of which would be the income for the year of the individual or a supporting person of an eligible child of the individual for the year if no amount were included in respect of a gain from a disposition of property to which section 79 applies in computing that income

66. (1) The definition ``adjusted income'' in subsection 122.5(1) of the Act is replaced by the following:

``adjusted income''
« revenu rajusté »

``adjusted income'' of an individual for a taxa tion year means the total of all amounts each of which would be the income for the year of

      (a) the individual, or

      (b) the individual's qualified relation for the year

    if no amount were included in respect of a gain from a disposition of property to which section 79 applies in computing that in come;

(2) The portion of the definition ``eligible individual'' in subsection 122.5(1) of the Act before paragraph (a) is replaced by the following:

``eligible individual''
« particulier admissible »

``eligible individual'' for a taxation year means an individual (other than a trust) who, at the end of December 31 of that year, is resident in Canada and is

(3) Section 122.5 of the Act is amended by adding the following after subsection (6):

Effect of bankruptcy

(7) For the purpose of this section, where in a taxation year an individual becomes bank rupt,

    (a) the individual's income for the year shall include the individual's income for the taxation year that begins on January 1 of the calendar year that includes the date of bankruptcy; and

    (b) the amount determined for the year under clause (3)(e)(ii)(B) shall include the amount determined for the purpose of paragraph (c) of the description of B in subsection 118(1) for the individual's taxa tion year that begins on January 1 of the calendar year that includes the date of bankruptcy.

(4) Subsection (1) applies to the 1992 and subsequent taxation years.

(5) Subsection (2) applies after April 26, 1995.

(6) Subsection (3) applies to bankruptcies that occur after April 26, 1995.

67. (1) The definition ``adjusted income'' in section 122.6 of the Act is replaced by the following:

``adjusted income''
« revenu modifié »

``adjusted income'' of an individual for a taxa tion year means the total of all amounts each of which would be the income for the year of the individual or of the person who was the individual's cohabiting spouse at the end of the year if no amount were in cluded in respect of a gain from a disposi tion of property to which section 79 applies in computing that income ;

(1.1) Subparagraph (e)(iii) of the defini tion ``eligible individual'' in section 122.6 of the Act is replaced by the following:

        (iii) was determined before that time under the Immigration Act, or regula tions made under that Act , to be a Convention refugee,

(2) Paragraphs (g) and (h) of the defini tion ``eligible individual'' in section 122.6 of the Act are replaced by the following:

      (g) the presumption referred to in para graph (f) does not apply in prescribed circumstances , and

      (h) prescribed factors shall be consid ered in determining what constitutes care and upbringing;

(3) Subsection (1) applies in determining the adjusted income of an individual for the 1992 and subsequent taxation years.

(4) Subsection (1.1) applies after 1992.

(5) Subsection (2) applies after August 27, 1995.

68. (1) Section 122.61 of the Act is amended by adding the following after subsection (3):

Effect of bankruptcy

(3.1) For the purposes of this subdivision, where in a taxation year an individual be comes bankrupt,

    (a) the individual's earned income for the year shall include the individual's earned income for the taxation year that begins on January 1 of the calendar year that includes the date of bankruptcy;

    (b) the individual's income for the year shall include the individual's income for the taxation year that begins on January 1 of the calendar year that includes the date of bankruptcy; and

    (c) the total of all amounts deducted under section 63 in computing the individual's income for the year shall include the amount deducted under that section for the individual's taxation year that begins on January 1 of the calendar year that includes the date of bankruptcy.

(2) Subsection (1) applies to bankruptcies that occur after April 26, 1995.

69. (1) Subsections 122.62(1) and (2) of the Act are replaced by the following:

Eligible individuals

122.62 (1) For the purposes of this subdivi sion, a person may be considered to be an eligible individual in respect of a particular qualified dependant at the beginning of a month only if the person has, no later than 11 months after the end of the month, filed with the Minister a notice in prescribed form containing prescribed information .

Extension for notices

(2) The Minister may at any time extend the time for filing a notice under subsection (1).

(2) Subsections 122.62(4) to (9) of the Act are replaced by the following:

Person ceasing to be an eligible individual

(4) Where during a particular month a person ceases to be an eligible individual in respect of a particular qualified dependant (otherwise than because of the qualified dependant attaining the age of 18 years), the person shall notify the Minister of that fact before the end of the first month following the particular month.

Death of cohabiting spouse

(5) Where

    (a) before the end of a particular month the cohabiting spouse of an eligible individual in respect of a qualified dependant dies, and

    (b) the individual so elects, before the end of the eleventh month after the particular month, in a form that is acceptable to the Minister,

for the purpose of determining the amount deemed under subsection 122.61(1) to be an overpayment arising in any month after the particular month on account of the individu al's liability under this Part for the base taxa tion year in relation to the particular month, subject to any subsequent election under sub section (6) or (7) ,

    (c) the individual's adjusted income for the year is deemed to be equal to the individu al's income for the year, and

    (d) the individual's adjusted earned income for the year is deemed to be equal to the individual's earned income for the year.

Separation from cohabiting spouse

(6) Where

    (a) before the end of a particular month an eligible individual in respect of a qualified dependant begins to live separate and apart from the individual's cohabiting spouse, because of a breakdown of their marriage, for a period of at least 90 days that includes a day in the particular month, and

    (b) the individual so elects, before the end of the eleventh month after the particular month, in a form that is acceptable to the Minister,

for the purpose of determining the amount deemed under subsection 122.61(1) to be an overpayment arising in any month after the particular month on account of the individu al's liability under this Part for the base taxa tion year in relation to the particular month, subject to any subsequent election under sub section (5) or (7) ,

    (c) the individual's adjusted income for the year is deemed to be equal to the individu al's income for the year, and

    (d) the individual's adjusted earned income for the year is deemed to be equal to the individual's earned income for the year.

Person becoming a cohabiting spouse

(7) Where

    (a) at any particular time before the end of a particular month a taxpayer has become the cohabiting spouse of an eligible individ ual, and

    (b) the taxpayer and the eligible individual jointly so elect in prescribed form filed with the Minister before the end of the eleventh month after the particular month,

for the purpose of determining the amount deemed by subsection 122.61(1) to be an over payment arising in any month after the partic ular month on account of the eligible individu al's liability under this Part for the year, the taxpayer is deemed to have been the eligible individual's cohabiting spouse throughout the period that began immediately before the end of the base taxation year in relation to the par ticular month and ended at the particular time.

(3) Subsections (1) and (2) apply after August 27, 1995.

70. (1) Subsection 122.63(1) of the Act is replaced by the following:

Agreement

122.63 (1) The Minister of Finance may enter into an agreement with the government of a province whereby the amounts deter mined under paragraph (a) of the description of A in subsection 122.61(1) with respect to persons resident in the province shall, for the purpose of calculating overpayments deemed to arise under that subsection, be replaced by amounts determined in accordance with the agreement.

(2) Subsection (1) applies after August 27, 1995.

71. (1) Subsection 122.64(2) of the Act is replaced by the following:

Communi-
cation of information

(2) Notwithstanding subsection 241(1), an official (as defined in subsection 241(10)) may provide information obtained under sub section 122.62(1), (4), (5) , (6) or (7) or the Family Allowances Act

    (a) to an official of the government of a province, solely for the purposes of the administration or enforcement of a pre scribed law of the province; or

    (b) to an official of the Department of Human Resources Development for the purposes of the administration of the Fami ly Allowances Act , the Canada Pension Plan or the Old Age Security Act.

(2) Subsection 122.64(5) of the Act is repealed.

(3) Subsections (1) and (2) apply after August 27, 1995, except that, before July 12, 1996, the reference in paragraph 122.64(2)(b) of the Act, as enacted by subsection (1), to ``Human Resources De velopment'' shall be read as a reference to ``National Health and Welfare''.

72. (1) The portion of subsection 125(1) of the Act before paragraph (a) is replaced by the following:

Small business deduction

125. (1) There may be deducted from the tax otherwise payable under this Part for a taxation year by a corporation that was, throughout the year, a Canadian-controlled private corporation, an amount equal to 16% of the least of

(2) The definition ``Canadian-controlled private corporation'' in subsection 125(7) of the Act is replaced by the following:

``Canadian-
controlled private corporation''
« société privée sous contrôle canadien »

``Canadian-controlled private corporation'' means a private corporation that is a Cana dian corporation other than a corporation

      (a) controlled, directly or indirectly in any manner whatever, by one or more non-resident persons, by one or more public corporations (other than a pre scribed venture capital corporation), or by any combination thereof,

      (b) that would, if each share of the capital stock of a corporation that is owned by a non-resident person or a public corpora tion (other than a prescribed venture capital corporation) were owned by a particular person, be controlled by the particular person, or