Incorporation by reference	(4) A regulation made under this Act may incorporate by reference material as amended from time to time.
	(3) Subsection (2) applies to any regula tion, regardless of whether it is made before or after this Act is assented to.
	143. (1) The Act is amended by adding the following after section 222:
Court costs	222.1 Where an amount is payable by a person to Her Majesty because of an order, judgment or award of a court in respect of the costs of litigation relating to a matter to which this Act applies, subsections 220(4) and (4.2) and sections 223, 224 to 225 and 226 apply to the amount as if the amount were a debt owing by the person to Her Majesty on account of tax payable by the person under this Act.
	(2) Subsection (1) applies to amounts that are payable after this Act is assented to, including amounts that became payable before this Act is assented to.
	143.1 (1) Subsection 223(1) of the Act is amended by adding the following after paragraph (b):
	(b.1) an amount payable under the Unem ployment Insurance Act by the person;
	(2) Subsection (1) is deemed to have come into force on June 30, 1996.
	144. The portion of subsection 225.1(1) of the Act before paragraph (a) is replaced by the following:
Collection restrictions	225.1 (1) Where a taxpayer is liable for the payment of an amount assessed under this Act, other than an amount assessed under subsec tion 152(4.2), 169(3) or 220(3.1), the Minister shall not, for the purpose of collecting the amount,
	145. (1) Subsection 227(4) of the Act is replaced by the following:
Trust for moneys deducted	(4) Every person who deducts or withholds an amount under this Act is deemed to hold the amount so deducted or withheld in trust, separate and apart from the person's own property , for Her Majesty and for payment to Her Majesty in the manner and at the time provided under this Act.
Extension of trust	(4.1) Notwithstanding the Bankruptcy and Insolvency Act, where at any time an amount deemed by subsection (4) to be held by a person in trust for Her Majesty is not paid to Her Majesty in the manner and at the time provided under this Act, property of the person equal in value to the amount so deemed to be held in trust is deemed
	(a) to be held, from the time the amount was deducted or withheld by the person, in trust, separate and apart from the person's own property, for Her Majesty and for payment to Her Majesty; and
	(b) to form no part of the estate of the person from the time the amount was so deducted or withheld, whether the amount or proper ty has in fact been kept separate and apart from the person's own property or estate.
	(1.1) Subsection 227(9.1) of the Act is replaced by the following:
Penalty	(9.1) Notwithstanding any other provision of this Act, any other enactment of Canada, any enactment of a province or any other law, the penalty for failure to remit an amount required to be remitted by a person on or before a prescribed date under subsection 153(1), subsection 21(1) of the Canada Pen sion Plan, subsection 53(1) of the Unemploy ment Insurance Act and subsection 82(1) of the Employment Insurance Act shall, unless the person who is required to remit the amount has, knowingly or under circumstances amounting to gross negligence, delayed in remitting the amount or has, knowingly or under circumstances amounting to gross neg ligence, remitted an amount less than the amount required, apply only to the amount by which the total of all amounts so required to be remitted on or before that date exceeds $500.
	(2) Subsection 227(10) of the Act is replaced by the following:
Assessment	(10) The Minister may at any time assess any amount payable under
	(a) subsection (8), (8.1), (8.2), (8.3) or (8.4) or 224(4) or (4.1) or section 227.1 or 235 by a person,
	(b) subsection 237.1(7.4) by a person or partnership,
	(c) subsection (10.2) by a person as a consequence of a failure of a non-resident person to deduct or withhold any amount, and
	(d) Part XIII by a person resident in Canada,
	and, where the Minister sends a notice of as sessment to that person or partnership , Divi sions I and J of Part I apply with any modifica tions that the circumstances require.
	(3) Subsection (1) is deemed to have come into force on June 15, 1994.
	(4) Subsection (1.1) is deemed to have come into force on June 30, 1996.
	(5) Subsection (2) applies after December 1, 1994.
	145.1 Section 230 of the Act is amended by adding the following after subsection (4):
Electronic records	(4.1) Every person required by this section to keep records who does so electronically shall retain them in an electronically readable format for the retention period referred to in subsection (4).
Exemptions	(4.2) The Minister may, on such terms and conditions as are acceptable to the Minister, exempt a person or a class of persons from the requirement in subsection (4.1).
	145.2 The definition ``documents'' in section 231 of the Act is replaced by the following:
``document'' « document »	``document'' includes money, a security and a record;
	145.3 (1) Subsection 231.5(1) of the Act is replaced by the following:
Copies	231.5 (1) Where any document is seized, inspected, audited , examined or provided under any of sections 231.1 to 231.4, the person by whom it is seized, inspected, audited or examined or to whom it is provided or any officer of the Department of National Revenue may make, or cause to be made, one or more copies thereof and, in the case of an electronic document, make or cause to be made a print-out of the electronic document, and any document purporting to be certified by the Minister or an authorized person to be a copy of the document, or to be a print-out of an electronic document, made pursuant to this section is evidence of the nature and content of the original document and has the same probative force as the original document would have if it were proven in the ordinary way.
	(2) Subsection (1) applies to copies and print-outs made after this Act is assented to.
	146. The portion of subsection 232(3.1) of the Act before paragraph (a) is replaced by the following:
Examination of certain documents where privilege claimed	(3.1) Where, pursuant to section 231.1, an officer is about to inspect or examine a document in the possession of a lawyer or where, pursuant to section 231.2, the Minister has required provision of a document by a lawyer, and the lawyer claims that a named client or former client of the lawyer has a solicitor-client privilege in respect of the document, no officer shall inspect or examine the document and the lawyer shall
	147. (1) The definition ``tax shelter'' in subsection 237.1(1) of the Act is replaced by the following:
``tax shelter'' « abri fiscal »	``tax shelter'' means any property (including, for greater certainty, any right to income) in respect of which it can reasonably be con sidered, having regard to statements or rep resentations made or proposed to be made in connection with the property, that, if a person were to acquire an interest in the property, at the end of a particular taxation year that ends within 4 years after the day on which the interest is acquired,
	(a) the total of all amounts each of which is
	(i) an amount, or a loss in the case of a partnership interest, represented to be deductible in computing income in respect of the interest in the property (including, where the property is a right to income, an amount or loss in respect of that right that is represented to be deductible) and expected to be incurred by or allocated to the person for the particular year or any preceding taxation year, or
	(ii) any other amount represented to be deductible in computing income or taxable income in respect of the inter est in the property and expected to be incurred by or allocated to the person for the particular year or any preceding taxation year, other than any amount included in computing a loss described in subparagraph (i),
	would equal or exceed
	(b) the amount, if any, by which
	(i) the cost to the person of the interest in the property at the end of the particular year, determined without reference to section 143.2 ,
	would exceed
	(ii) the total of all amounts each of which is the amount of any prescribed benefit that is expected to be received or enjoyed, directly or indirectly, in respect of the interest in the property by the person or another person with whom the person does not deal at arm's length,
	but does not include property that is a flow-through share or a prescribed property.
	(2) Paragraphs (a) and (b) of the defini tion ``promoter'' in subsection 237.1(1) of the Act are replaced by the following:
	(a) sells or issues, or promotes the sale, issuance or acquisition of, the tax shelter,
	(b) acts as an agent or adviser in respect of the sale or issuance, or the promotion of the sale, issuance or acquisition, of the tax shelter, or
	(c) accepts, whether as a principal or agent, consideration in respect of the tax shelter,
	(3) Subsection 237.1(1) of the Act is amended by adding the following in alpha betical order:
``person'' « personne »	``person'' includes a partnership;
	(4) Subsections 237.1(4) to (7) of the Act are replaced by the following:
Sales prohibited	(4) No person shall, whether as a principal or an agent, sell or issue, or accept consider ation in respect of , a tax shelter before the Minister has issued an identification number for the tax shelter.
Providing tax shelter number	(5) Every promoter in respect of a tax shelter shall
	(a) make reasonable efforts to ensure that all persons who acquire or otherwise invest in the tax shelter are provided with the identification number issued by the Minis ter for the tax shelter;
	(b) prominently display on the upper right- hand corner of any statement of earnings prepared by or on behalf of the promoter in respect of the tax shelter the identification number issued for the tax shelter; and
	(c) on every written statement made after 1995 by the promoter that refers either directly or indirectly and either expressly or impliedly to the issuance by the Department of National Revenue of an identification number for the tax shelter, as well as on the copies of the portion of the information return to be forwarded pursuant to subsec tion (7.3), prominently display
	(i) where the statement or return is wholly or partly in English, the follow ing:
	``The identification number issued for this tax shelter shall be included in any income tax return filed by the investor. Issuance of the identification number is for administrative purposes only and does not in any way confirm the entitlement of an investor to claim any tax benefits associated with the tax shelter.''
	(ii) where the statement or return is wholly or partly in French, the following:
	``Le numéro d'inscription attribué à cet abri fiscal doit figurer dans toute déclaration d'impôt sur le revenu pro duite par l'investisseur. L'attribution de ce numéro n'est qu'une formalité administrative et ne confirme aucune ment le droit de l'investisseur aux avantages fiscaux découlant de cet abri fiscal.''
	and
	(iii) where the statement includes neither English nor French, the following:
	``The identification number issued for this tax shelter shall be included in any income tax return filed by the investor. Issuance of the identification number is for administrative purposes only and does not in any way confirm the entitlement of an investor to claim any tax benefits associated with the tax shelter.
	Le numéro d'inscription attribué à cet abri fiscal doit figurer dans toute déclaration d'impôt sur le revenu pro duite par l'investisseur. L'attribution de ce numéro n'est qu'une formalité administrative et ne confirme aucune ment le droit de l'investisseur aux avantages fiscaux découlant de cet abri fiscal.''
Deductions and claims disallowed	(6) No amount may be deducted or claimed by a person in respect of a tax shelter unless the person files with the Minister a prescribed form containing prescribed information, in cluding the identification number for the tax shelter.
Deductions and claims disallowed	(6.1) No amount may be deducted or claimed by any person for any taxation year in respect of a tax shelter of the person where any person is liable to a penalty under subsection (7.4) or 162(9) in respect of the tax shelter or interest on the penalty and
	(a) the penalty or interest has not been paid; or
	(b) the penalty and interest have been paid, but an amount on account of the penalty or interest has been repaid under subsection 164(1.1) or applied under subsection 164(2).
Assessments	(6.2) Notwithstanding subsections 152(4) to (5), such assessments, determinations and redeterminations may be made as are neces sary to give effect to subsection (6.1).
Information return	(7) Every promoter in respect of a tax shelter who accepts consideration in respect of the tax shelter or who acts as a principal or agent in respect of the tax shelter in a calendar year shall, in prescribed form and manner, file an information return for the year containing
	(a) the name, address and Social Insurance Number of each person who so acquires or otherwise invests in the tax shelter in the year,
	(b) the amount paid by each of those persons in respect of the tax shelter , and
	(c) such other information as is required by the prescribed form
	unless an information return in respect of the tax shelter has previously been filed .
Time for filing return	(7.1) An information return required under subsection (7) to be filed in respect of the acquisition of an interest in a tax shelter in a calendar year shall be filed with the Minister on or before the last day of February of the following calendar year.
Time for filing - special case	(7.2) Notwithstanding subsection (7.1), where a person is required under subsection (7) to file an information return in respect of a business or activity and the person discontin ues that business or activity, the return shall be filed on or before the earlier of
	(a) the day referred to in subsection (7.1); and
	(b) the day that is 30 days after the day of the discontinuance.
Copies to be provided	(7.3) Every person required to file a return under subsection (7) shall, on or before the day on or before which the return is required to be filed with the Minister, forward to each person to whom the return relates 2 copies of the portion of the return relating to that person.
Penalty	(7.4) Every person who files false or misleading information with the Minister in respect of an application under subsection (2) or, whether as a principal or as an agent, sells, issues or accepts consideration in respect of a tax shelter before the Minister has issued an identification number for the tax shelter is liable to a penalty equal to the greater of
	(a) $500, and
	(b) 25% of the total of all amounts each of which is the consideration received or receivable from a person in respect of the tax shelter before the correct information is filed with the Minister or the identification number is issued, as the case may be.
	(5) Subsections (1) and (3) apply after November 1994.
	(6) Subsections (2) and (4) apply after December 1, 1994.
	148. (1) Section 239 of the Act is amended by adding the following after subsection (1):