exceeds the total of all amounts each of which is
	(b) the taxpayer's pension adjustment for the preceding taxation year in respect of an employer, or
	(c) a prescribed amount in respect of the taxpayer for the year, and
	(5) Paragraphs (a) and (b) of the defini tion ``refund of premiums'' in subsection 146(1) of the Act are replaced by the following:
	(a) any amount paid to a spouse of the annuitant out of or under a registered retirement savings plan of the annuitant (other than any part of the amount that is a tax-paid amount in respect of the plan) , where the annuitant died before the maturity of the plan and the amount was paid as a consequence of the death, or
	(b) if the annuitant had no spouse at the time of the annuitant's death, any amount paid out of or under a registered retire ment savings plan of the annuitant (other than any part of the amount that is a tax-paid amount in respect of the plan) after the death to a child or grandchild (in this definition referred to as a ``depen dant'') of the annuitant, who was, at the time of the death, financially dependent on the annuitant for support,
	(6) The description of B in subparagraph (b)(i) of the definition ``unused RRSP de duction room'' in subsection 146(1) of the Act is replaced by the following:
	B is the amount, if any, by which
	(A) the lesser of the RRSP dollar limit for the year and 18% of the taxpayer's earned income for the preceding taxation year
	exceeds the total of all amounts each of which is
	(B) the taxpayer's pension ad justment for the preceding taxa tion year in respect of an employ er, or
	(C) a prescribed amount in re spect of the taxpayer for the year,
	(7) Subsection 146(1) of the Act is amended by adding the following in alpha betical order:
``tax-paid amount'' « montant libéré d'impôt »	``tax-paid amount'' paid to a person in respect of a registered retirement saving plan means
	(a) an amount paid to the person in respect of the amount that would, if this Act were read without reference to subsection 104(6), be income of a trust governed by the plan for a taxation year for which the trust was subject to tax because of paragraph (4)(c), or
	(b) where
	(i) the plan is a deposit with a deposita ry referred to in clause (b)(iii)(B) of the definition ``retirement savings plan'' in this subsection, and
	(ii) an amount is received at any time out of or under the plan by the person,
	the portion of the amount that can reasonably be considered to relate to interest or another amount in respect of the deposit that was required to be included in computing the income of any person (other than the annuitant) other wise than because of this section;
	(8) The description of A in subsection 146(8.9) of the Act is replaced by the following:
	A is the total of
	(a) all refunds of premiums in respect of the plan,
	(b) all tax-paid amounts in respect of the plan paid to individuals who, otherwise than because of subsection (8.1), re ceived refunds of premiums in respect of the plan, and
	(c) all amounts each of which is a tax-paid amount in respect of the plan paid to the legal representative of the annuitant under the plan, to the extent that the legal representative would have been entitled to designate that tax-paid amount under subsection (8.1) if tax-paid amounts were not excluded in determin ing refunds of premiums;
	(9) Subsection (1) applies to taxation years that end after November 1991.
	(10) Subsections (2), (5), (7) and (8) apply to deaths occurring after 1992.
	(11) Subsection (3) applies to the 1995 and subsequent taxation years.
	(12) Subsections (4) and (6) apply after 1988.
	97. (1) Paragraph 146.3(2)(a) of the English version of the Act is replaced by the following:
	(a) the fund provides that the carrier shall make only those payments described in any of paragraphs (d) and (e), the definition ``retirement income fund '' in subsection (1) and paragraph (14)(b);
	(2) Subsection 146.3(5) of the Act is amended by striking out the word ``or'' at the end of paragraph (a), by adding the word ``or'' at the end of paragraph (b) and by adding the following after paragraph (b):
	(c) an amount that relates to interest, or to another amount included in computing income otherwise than because of this section, and that would, if the fund were a registered retirement savings plan, be a tax-paid amount (within the meaning as signed by paragraph (b) of the definition ``tax-paid amount'' in subsection 146(1)).
	(3) The description of A in subsection 146.3(6.2) of the Act is replaced by the following:
	A is the total of
	(a) all designated benefits of individuals in respect of the fund,
	(b) all amounts that would, if the fund were a registered retirement savings plan, be tax-paid amounts (in this subsection having the meaning assigned by subsection 146(1)) in respect of the fund received by individu als who received, otherwise than because of subsection (6.1), designated benefits in respect of the fund, and
	(c) the total of all amounts each of which is an amount that would, if the fund were a registered retirement savings plan, be a tax-paid amount in respect of the fund received by the legal representative of the last annuitant under the fund, to the extent that the legal representative would have been entitled to designate that tax-paid amount under paragraph (a) of the defini tion ``designated benefit'' in subsection (1) if tax-paid amounts were not excluded in determining refunds of premiums (as de fined in subsection 146(1));
	(4) Subsection (1) applies to taxation years that end after November 1991.
	(5) Subsections (2) and (3) apply to deaths that occur after 1992.
	98. (1) Subparagraph 147(19)(b)(ii) of the Act is replaced by the following:
	(ii) who is entitled to the amount as a consequence of the death of an employee or former employee referred to in sub paragraph (i) and who was, at the date of the employee's death, a spouse of the employee,
	(2) Subsection (1) applies after 1992.
	99. (1) Paragraph 147.2(2)(b) of the Act is replaced by the following:
	(b) the recommendation is approved by the Minister in writing,
	(2) Clause (B) of the description of Z in subparagraph 147.2(4)(b)(iii) of the Act is replaced by the following:
	(B) where the preceding year was before 1987, under subparagraph 8(1)(m)(ii) (as it read in its applica tion to that preceding year) in respect of additional voluntary con tributions made in respect of a year that satisfies the conditions in the description of Y, and
	(3) Section 147.2 of the Act is amended by adding the following after subsection (5):
Deductible contributions when taxpayer dies	(6) Where a taxpayer dies in a taxation year, for the purpose of computing the taxpayer's income for the year and the preceding taxation year,
	(a) paragraph (4)(b) shall be read without reference to subparagraph (ii) and as if the reference to ``the least of'' were a reference to ``the lesser of''; and
	(b) paragraph (4)(c) shall be read without reference to subparagraph (ii) and the words ``the lesser of''.
	(4) Subsection (1) applies after March 1996.
	(5) Subsection (2) applies to the 1991 and subsequent taxation years.
	(6) Subsection (3) applies to taxpayers who die after 1992.
	100. (1) The definitions ``eligible funeral arrangement'', ``funeral services'' and ``qualifying person'' in subsection 148.1(1) of the Act are replaced by the following:
``eligible funeral arrange- ment'' « arrange- ment de services funéraires »	``eligible funeral arrangement'' at a particular time means an arrangement established and maintained by a qualifying person solely for the purpose of funding funeral or ceme tery services with respect to one or more in dividuals and of which there is one or more custodians each of whom was resident in Canada at the time the arrangement was es tablished, where
	(a) each contribution made before the particular time under the arrangement was made for the purpose of funding funeral or cemetery services to be pro vided by the qualifying person with respect to an individual, and
	(b) for each such individual, the total of all relevant contributions made before the particular time in respect of the individual does not exceed
	(i) $15,000, where the arrangement solely covers funeral services with respect to the individual,
	(ii) $20,000, where the arrangement solely covers cemetery services with respect to the individual, and
	(iii) $35,000, in any other case,
	and, for the purpose of this definition, any payment (other than the portion of the payment to be applied as a contribution to a cemetery care trust) that is made in consideration for the immediate acquisition of a right to burial in or on property that is set apart or used as a place for the burial of human remains or of any interest in a building or structure for the permanent placement of human remains, shall be considered to have been made pursuant to a separate arrangement that is not an eligible funeral arrangement;
``funeral services'' « services funéraires »	``funeral services'' with respect to an individ ual means property and services (other than cemetery services with respect to the indi vidual) that relate directly to funeral ar rangements in Canada in consequence of the death of the individual;
``qualifying person'' « personne admissible »	``qualifying person'' means a person licensed or otherwise authorized under the laws of a province to provide funeral or cemetery services with respect to individuals;
	(2) Paragraph (b) of the definition ``cus todian'' in subsection 148.1(1) of the Act is replaced by the following:
	(b) in any other case, a qualifying person who receives a contribution under the arrangement as a deposit for the provi sion by the person of funeral or cemetery services;
	(3) Paragraphs (a) and (b) of the defini tion ``relevant contribution'' in subsection 148.1(1) of the Act are replaced by the following:
	(a) a contribution under the particular arrangement (other than a contribution made by way of a transfer from an eligible funeral arrangement) for the purpose of funding funeral or cemetery services with respect to the individual, or
	(b) such portion of a contribution to another arrangement that was an eligible funeral arrangement (other than any such contribution made by way of a transfer from any eligible funeral arrangement) as can reasonably be considered to have subsequently been used to make a con tribution under the particular arrange ment by way of a transfer from an eligible funeral arrangement for the purpose of funding funeral or cemetery services with respect to the individual.
	(4) Subsection 148.1(1) of the Act is amended by adding the following in alpha betical order:
``cemetery care trust'' « fiducie pour l'entretien d'un cimetière »	``cemetery care trust'' means a trust estab lished pursuant to an Act of a province for the care and maintenance of a cemetery;
``cemetery services'' « services de cimetière »	``cemetery services'' with respect to an indi vidual means property (including interment vaults, markers, flowers, liners, urns, shrubs and wreaths) and services that relate directly to cemetery arrangements in Cana da in consequence of the death of the indi vidual including, for greater certainty, prop erty and services to be funded out of a ceme tery care trust;
``funeral or cemetery services'' « services de funérailles ou de cimetière »	``funeral or cemetery services'' with respect to an individual means funeral services with respect to the individual, cemetery services with respect to the individual or any com bination of such services;
	(5) Paragraphs 148.1(2)(b) and (c) of the Act are replaced by the following:
	(b) subject to paragraph (c) and subsection (3), no amount shall be
	(i) included in computing a person's income solely because of the provision by another person of funeral or cemetery services under an eligible funeral ar rangement, or
	(ii) included in computing a person's income because of the disposition of an interest under an eligible funeral arrange ment or an interest in a trust governed by an eligible funeral arrangement; and
	(c) subparagraph (b)(ii) shall not affect the consequences under this Act of the disposi tion of any right under an eligible funeral arrangement to payment for the provision of funeral or cemetery services.
	(6) Subsection 148.1(3) of the Act is replaced by the following:
Income inclusion on return of funds	(3) Where at any particular time in a taxation year a particular amount is distrib uted (otherwise than as payment for the provision of funeral or cemetery services with respect to an individual) to a taxpayer from an arrangement that was, at the time it was established, an eligible funeral arrangement and the particular amount is paid from the balance in respect of the individual under the arrangement, there shall be added in comput ing the taxpayer's income for the year from property the lesser of the particular amount and the amount determined by the formula
	A + B - C
	where
	A is the balance in respect of the individual under the arrangement immediately before the particular time (determined without re gard to the value of property in a cemetery care trust) ;
	B is the total of all payments made from the arrangement before the particular time for the provision of funeral or cemetery ser vices with respect to the individual (other than cemetery services funded by property in a cemetery care trust) ; and
	C is the total of all relevant contributions made before the particular time in respect of the individual under the particular ar rangement (other than contributions in re spect of the individual that were in a ceme tery care trust) .
	(7) Subsections (1) to (6) apply to the 1993 and subsequent taxation years.
	101. (1) Paragraph 149(1)(o.1) of the Act is replaced by the following:
Pension corporations	(o.1) a corporation
	(i) incorporated and operated throughout the period either
	(A) solely for the administration of a registered pension plan, or