(B) for the administration of a regis tered pension plan and for no other purpose other than acting as trustee of, or administering, a trust governed by a retirement compensation arrange ment, where the terms of the arrange ment provide for benefits only in respect of individuals who are pro vided with benefits under the regis tered pension plan, and

      (ii) accepted by the Minister as a funding medium for the purpose of the registra tion of the pension plan;

(2) Subsection 149(1) of the Act is amended by adding the following after paragraph (s.1):

Cemetery care trust

    (s.2) a cemetery care trust;

(3) Paragraph 149(10)(a) of the Act is replaced by the following:

    (a) the taxation year of the corporation that would otherwise have included that time is deemed to have ended immediately before that time, a new taxation year of the corporation is deemed to have begun at that time and, for the purpose of determining the taxpayer's fiscal period after that time, the taxpayer is deemed not to have established a fiscal period before that time ;

(4) Paragraphs 149(10)(b) to (d) of the Act are replaced by the following:

    (b) the corporation is deemed to have disposed, at the time (in this subsection referred to as the ``disposition time'') that is immediately before the time that is immediately before that time, of each property that was owned by it immediately before that time for an amount equal to its fair market value at that time and to have reacquired the property at that time at a cost equal to that fair market value;

    (c) for the purposes of applying sections 37, 65 to 66.4, 66.7, 111 and 126, subsections 127(5) to (26) and section 127.3 to the corporation, the corporation is deemed to be a new corporation the first taxation year of which began at that time; and

    (d) where, immediately before the disposi tion time, the corporation's cumulative eligible capital in respect of a business exceeds the total of

      (i) 3/4 of the fair market value of the eligible capital property in respect of the business, and

      (ii) the amount otherwise deducted under paragraph 20(1)(b) in computing the corporation's income from the business for the taxation year that ended immedi ately before that time,

    the excess shall be deducted under para graph 20(1)(b) in computing the corpora tion's income from the business for the taxation year that ended immediately be fore that time.

(5) Subsection 149(11) of the Act is repealed.

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

(7) Subsection (2) applies to the 1993 and subsequent taxation years.

(8) Subsections (3) and (4) apply to a corporation that becomes or ceases to be exempt from tax on its taxable income under Part I of the Act after April 26, 1995.

102. (1) The formula in the definition ``disbursement quota'' in subsection 149.1(1) of the Act is replaced by the following: 

A + A.1 + B + C x 0.045 [D - (E + F)] + G
                       365

(2) The portion of the description of A in the definition ``disbursement quota'' in subsection 149.1(1) of the Act before para graph (a) is replaced by the following:

A is 80% of the total of all amounts each of which is the amount of a gift for which the foundation issued a receipt described in subsection 110.1(2) or 118.1(2) in its immediately preceding taxation year, other than

(3) Subsections (1) and (2) apply to taxation years that end after November 1991, except that, for such taxation years that begin before 1993, the formula in the definition ``disbursement quota'' in subsec tion 149.1(1) of the Act, as enacted by subsection (1), shall be read as follows: 

A + B + C x 0.045 [D - (E + F)] + G
                  365

102.1 (1) Clause 150(1)(d)(ii)(A) of the Act is replaced by the following:

        (A) an individual who carried on a business in the year, unless the expen ditures made in the course of carrying on the business were primarily the cost or capital cost of tax shelter invest ments (as defined in subsection 143.2(1)), or

(2) Subsection (1) applies to the 1995 and subsequent taxation years.

103. (1) Subsection 152(1.2) of the Act is replaced by the following:

Provisions applicable

(1.2) Paragraphs 56(1)(l) and 60(o), this Division and Division J, as they relate to an assessment or a reassessment and to assessing or reassessing tax, apply, with such modifica tions as the circumstances require, to a determination or redetermination of an amount under this Division or an amount deemed under section 122.61 or 126.1 to be an overpayment on account of a taxpayer's liability under this Part, except that

    (a) subsections (1) and (2) do not apply to determinations made under subsections (1.1) and (1.11);

    (b) an original determination of a taxpay er's non-capital loss, net capital loss, re stricted farm loss, farm loss or limited partnership loss for a taxation year may be made by the Minister only at the request of the taxpayer; and

    (c) subsection 164(4.1) does not apply to a determination made under subsection (1.4) .

(2) Section 152 of the Act is amended by adding the following after subsection (1.3):

Determi-
nation in respect of a partnership

(1.4) The Minister may, within 3 years after the day that is the later of

    (a) the day on or before which a member of a partnership is, or but for subsection 220(2.1) would be, required under section 229 of the Income Tax Regulations to make an information return for a fiscal period of the partnership, and

    (b) the day the return is filed,

determine any income or loss of the partner ship for the fiscal period and any deduction or other amount, or any other matter, in respect of the partnership for the fiscal period that is relevant in determining the income, taxable income or taxable income earned in Canada of, tax or other amount payable by, or any amount refundable to or deemed to have been paid or to have been an overpayment by, any member of the partnership for any taxation year under this Part.

Notice of determination

(1.5) Where a determination is made under subsection (1.4) in respect of a partnership for a fiscal period, the Minister shall send a notice of the determination to the partnership and to each person who was a member of the partnership during the fiscal period.

Absence of notification

(1.6) No determination made under subsec tion (1.4) in respect of a partnership for a fiscal period is invalid solely because one or more persons who were members of the partnership during the period did not receive a notice of the determination.

Binding effect of determination

(1.7) Where the Minister makes a deter mination under subsection (1.4) or a redeter mination in respect of a partnership,

    (a) subject to the rights of objection and appeal of the member of the partnership referred to in subsection 165(1.15) in respect of the determination or redeter mination, the determination or redeter mination is binding on the Minister and each member of the partnership for the purposes of calculating the income, taxable income or taxable income earned in Canada of, tax or other amount payable by, or any amount refundable to or deemed to have been paid or to have been an overpayment by, the members for any taxation year under this Part; and

    (b) notwithstanding subsections (4), (4.01), (4.1) and (5), the Minister may, before the end of the day that is one year after the day on which all rights of objection and appeal expire or are determined in respect of the determination or redetermination, assess the tax, interest, penalties or other amounts payable and determine an amount deemed to have been paid or to have been an overpayment under this Part in respect of any member of the partnership and any other taxpayer for any taxation year as may be necessary to give effect to the determina tion or redetermination or a decision of the Tax Court of Canada, the Federal Court of Canada or the Supreme Court of Canada.

Time to assess

(1.8) Where, as a result of representations made to the Minister that a person was a member of a partnership in respect of a fiscal period, a determination is made under subsec tion (1.4) for the period and the Minister, the Tax Court of Canada, the Federal Court of Canada or the Supreme Court of Canada concludes at a subsequent time that the partnership did not exist for the period or that, throughout the period, the person was not a member of the partnership, the Minister may, notwithstanding subsections (4), (4.1) and (5), within one year after that subsequent time, assess the tax, interest, penalties or other amounts payable, or determine an amount deemed to have been paid or to have been an overpayment under this Part, by any taxpayer for any taxation year, but only to the extent that the assessment or determination can reasonably be regarded

    (a) as relating to any matter that was relevant in the making of the determination made under subsection (1.4);

    (b) as resulting from the conclusion that the partnership did not exist for the period; or

    (c) as resulting from the conclusion that the person was, throughout the period, not a member of the partnership.

(3) Subsection 152(3.1) of the Act is replaced by the following:

Definition of ``normal reassessment period''

(3.1) For the purposes of subsections (4), (4.01), (4.2), (4.3) and (5), the normal reas sessment period for a taxpayer in respect of a taxation year is

    (a) where at the end of the year the taxpayer is a mutual fund trust or a corporation other than a Canadian-controlled private corpo ration, the period that ends 4 years after the earlier of the day of mailing of a notice of an original assessment under this Part in respect of the taxpayer for the year and the day of mailing of an original notification that no tax is payable by the taxpayer for the year; and

    (b) in any other case, the period that ends 3 years after the earlier of the day of mailing of a notice of an original assessment under this Part in respect of the taxpayer for the year and the day of mailing of an original notification that no tax is payable by the taxpayer for the year.

(4) Subsection 152(4) of the Act is re placed by the following:

Assessment and reassessment

(4) The Minister may at any time make an assessment, reassessment or additional assess ment of tax for a taxation year, interest or penalties, if any, payable under this Part by a taxpayer or notify in writing any person by whom a return of income for a taxation year has been filed that no tax is payable for the year, except that an assessment, reassessment or additional assessment may be made after the taxpayer's normal reassessment period in respect of the year only if

    (a) the taxpayer or person filing the return

      (i) has made any misrepresentation that is attributable to neglect, carelessness or wilful default or has committed any fraud in filing the return or in supplying any information under this Act, or

      (ii) has filed with the Minister a waiver in prescribed form within the normal reas sessment period for the taxpayer in respect of the year; or

    (b) the assessment, reassessment or addi tional assessment is made before the day that is 3 years after the end of the normal reassessment period for the taxpayer in respect of the year and

      (i) is required pursuant to subsection (6) or would be so required if the taxpayer had claimed an amount by filing the prescribed form referred to in that sub section on or before the day referred to therein,

      (ii) is made as a consequence of the assessment or reassessment pursuant to this paragraph or subsection (6) of tax payable by another taxpayer ,

      (iii) is made as a consequence of a transaction involving the taxpayer and a non-resident person with whom the tax payer was not dealing at arm's length,

      (iv) is made as a consequence of a payment or reimbursement of any in come or profits tax to or by the govern ment of a country other than Canada or a government of a state, province or other political subdivision of any such country, or

      (v) is made as a consequence of a reduction under subsection 66(12.73) of an amount purported to be renounced under section 66.

Assessment to which par. 152(4)(a) or (b) applies

(4.01) Notwithstanding subsections (4) and (5), an assessment, reassessment or additional assessment to which paragraph (4)(a) or (b) applies in respect of a taxpayer for a taxation year may be made after the taxpayer's normal reassessment period in respect of the year to the extent that, but only to the extent that, it can reasonably be regarded as relating to,

    (a) where paragraph (4)(a) applies to the assessment, reassessment or additional as sessment,

      (i) any misrepresentation made by the taxpayer or a person who filed the taxpayer's return of income for the year that is attributable to neglect, careless ness or wilful default or any fraud committed by the taxpayer or that person in filing the return or supplying any information under this Act, or

      (ii) a matter specified in a waiver filed with the Minister in respect of the year; and

    (b) where paragraph (4)(b) applies to the assessment, reassessment or additional as sessment,

      (i) the assessment, reassessment or addi tional assessment to which subparagraph (4)(b)(i) applies,

      (ii) the assessment or reassessment re ferred to in subparagraph (4)(b)(ii),

      (iii) the transaction referred to in sub paragraph (4)(b)(iii),

      (iv) the payment or reimbursement re ferred to in subparagraph (4)(b)(iv), or

      (v) the reduction referred to in subpara graph (4)(b)(v).

(5) Subsection 152(5) of the Act is re placed by the following:

Limitation on assessments

(5) There shall not be included in comput ing the income of a taxpayer for a taxation year, for the purpose of an assessment, reassessment or additional assessment made under this Part after the taxpayer's normal reassessment period in respect of the year, any amount that was not included in computing the taxpayer's income for the purpose of an assessment, reassessment or additional assess ment made under this Part before the end of the period.

(6) Subsection 152(6) of the Act is amended by striking out the word ``or'' at the end of paragraph (f) and by adding the following after that paragraph:

    (g) a deduction under subsection 147.2(4) because of the application of subsection 147.2(6) as a result of the taxpayer's death in the subsequent taxation year, or

(7) Subsections (1) and (2) apply in respect of determinations made after the day on which this Act is assented to.

(8) Subsections (3) to (5) apply after April 27, 1989, except that

    (a) in applying subsection 152(4) of the Act, as enacted by subsection (4), to a taxation year before the 1996 taxation year, it shall be read without reference to subparagraph (b)(v); and

    (b) in applying subsection 152(4.01) of the Act, as enacted by subsection (4), to a taxation year before the 1996 taxation year, it shall be read without reference to subparagraph (b)(v).

(9) Subsection (6) applies to taxpayers who die after 1992.

104. (1) Paragraph 153(1)(d.1) of the Act is replaced by the following:

    (d.1) an amount as a benefit under the Unemployment Insurance Act or the Em ployment Insurance Act,

(2) Subsection 153(1) of the Act is amended by striking out the word ``or'' at the end of paragraph (q), by adding the word ``or'' at the end of paragraph (r) and by adding the following after paragraph (r):

    (s) an amount described in paragraph 56(1)(r)

(3) Subsection (1) is deemed to have come into force on June 30, 1996.

(4) Subsection (2) applies to payments made after 1992.

105. (1) Paragraph 154(2)(a) of the Act is replaced by the following:

    (a) has filed a return of income for the year with the Minister ,

(2) Subsection (1) applies to the 1996 and subsequent taxation years.

106. (1) The portion of subsection 157(2) of the Act before paragraph (c) is replaced by the following: