received by the taxpayer and included in computing the taxpayer's income for the year or a preceding taxation year, to the extent of the amount thereof repaid by the taxpayer in the year otherwise than because of Part VII of the Unemployment Insurance Act or Part VII of the Employment Insur ance Act;
	(2) Subparagraph 60(o)(ii) of the Act is replaced by the following:
	(ii) a decision of the Canada Employ ment and Immigration Commission , the Canada Employment and Insurance Commission, a board of referees or an umpire under the Unemployment Insur ance Act or the Employment Insurance Act,
	(3) Paragraphs 60(t) and (u) of the Act are replaced by the following:
RCA distributions	(t) where an amount in respect of a particu lar retirement compensation arrangement is required by paragraph 56(1)(x) or (z) or subsection 70(2) to be included in comput ing the taxpayer's income for the year, an amount equal to the lesser of
	(i) the total of all amounts in respect of the particular arrangement so required to be included in computing the taxpayer's income for the year, and
	(ii) the amount, if any, by which the total of all amounts each of which is
	(A) an amount (other than an amount deductible under paragraph 8(1)(m.2) or transferred to the particular arrange ment under circumstances in which subsection 207.6(7) applies ) contrib uted under the particular arrangement by the taxpayer while it was a retire ment compensation arrangement and before the end of the year,
	(A.1) an amount transferred in respect of the taxpayer before the end of the year to the particular arrangement from another retirement compensation arrangement under circumstances in which subsection 207.6(7) applies, to the extent that the amount would have been deductible under this paragraph in respect of the other arrangement in computing the taxpayer's income if it had been received by the taxpayer out of the other arrangement,
	(B) an amount paid by the taxpayer before the end of the year and at a time when the taxpayer was resident in Canada to acquire an interest in the particular arrangement, or
	(C) an amount that was received or became receivable by the taxpayer before the end of the year and at a time when the taxpayer was resident in Canada as proceeds from the disposi tion of an interest in the particular arrangement,
	exceeds the total of all amounts each of which is
	(D) an amount deducted under this paragraph or paragraph (u) in respect of the particular arrangement in com puting the taxpayer's income for a preceding taxation year, or
	(E) an amount transferred in respect of the taxpayer before the end of the year from the particular arrangement to another retirement compensation ar rangement under circumstances in which subsection 207.6(7) applies, to the extent that the amount would have been deductible under this paragraph in respect of the particular arrange ment in computing the taxpayer's income if it had been received by the taxpayer out of the particular arrange ment;
RCA dispositions	(u) where an amount in respect of a particular retirement compensation ar rangement is required by paragraph 56(1)(y) to be included in computing the taxpayer's income for the year, an amount equal to the lesser of
	(i) the total of all amounts in respect of the particular arrangement so required to be included in computing the taxpayer's income for the year, and
	(ii) the amount, if any, by which the total of all amounts each of which is
	(A) an amount (other than an amount deductible under paragraph 8(1)(m.2) or transferred to the particular arrange ment under circumstances in which subsection 207.6(7) applies) contrib uted under the particular arrangement by the taxpayer while it was a retire ment compensation arrangement and before the end of the year,
	(A.1) an amount transferred in respect of the taxpayer before the end of the year to the particular arrangement from another retirement compensation arrangement under circumstances in which subsection 207.6(7) applies, to the extent that the amount would have been deductible under paragraph (t) in respect of the other arrangement in computing the taxpayer's income if it had been received by the taxpayer out of the other arrangement, or
	(B) an amount paid by the taxpayer before the end of the year and at a time when the taxpayer was resident in Canada to acquire an interest in the particular arrangement
	exceeds the total of all amounts each of which is
	(C) an amount deducted under para graph (t) in respect of the particular arrangement in computing the taxpay er's income for the year or a preceding taxation year,
	(D) an amount deducted under this paragraph in respect of the particular arrangement in computing the taxpay er's income for a preceding taxation year, or
	(E) an amount transferred in respect of the taxpayer before the end of the year from the particular arrangement to another retirement compensation ar rangement under circumstances in which subsection 207.6(7) applies, to the extent that the amount would have been deductible under paragraph (t) in respect of the particular arrangement in computing the taxpayer's income if it had been received by the taxpayer out of the particular arrangement;
	(4) Paragraph 60(v.1) of the Act is re placed by the following:
UI and EI benefit repayment	(v.1) any benefit repayment payable by the taxpayer under Part VII of the Unemploy ment Insurance Act or Part VII of the Employment Insurance Act on or before April 30 of the following year, to the extent that the amount was not deductible in computing the taxpayer's income for any preceding taxation year; and
	(5) Subsections (1), (2) and (4) are deemed to have come into force on June 30, 1996.
	(6) Subsection (3) applies to the 1996 and subsequent taxation years.
	28. (1) The description of E in paragraph 61.3(1)(b) of the Act is replaced by the following:
	E is 50% of the amount, if any, by which
	(i) the amount that would be the corporation's income for the year if that amount were determined without reference to this section and section 61.4
	exceeds
	(ii) the amount determined under paragraph (a) in respect of the corpora tion for the year.
	(2) The description of E in paragraph 61.3(2)(b) of the Act is replaced by the following:
	E is 50% of the amount, if any, by which
	(i) the amount that would be the corporation's taxable income or tax able income earned in Canada for the year if that amount were determined without reference to this section and section 61.4
	exceeds
	(ii) the amount determined under paragraph (a) in respect of the corpora tion for the year.
	(3) Subsections (1) and (2) apply to taxation years that end after February 21, 1994.
	29. (1) Paragraph 62(3)(f) of the Act is replaced by the following:
	(f) where the old residence is being or has been sold by the taxpayer or the taxpayer's spouse as a result of the move, the cost to the taxpayer of legal services in respect of the purchase of the new residence and of any taxes (other than the goods and services tax) imposed on the transfer or registration of title to the new residence,
	(2) Subsection (1) applies to costs in curred after 1990.
	30. (1) Paragraph (b) of the definition ``earned income'' in subsection 63(3) of the Act is replaced by the following:
	(b) all amounts that are included, or that would, but for paragraph 81(1)(a), be included, because of section 6 or 7 or paragraph 56(1)(m), (n), (o) or (r) , in computing the taxpayer's income,
	(2) Paragraph (b) of the definition ``earned income'' in subsection 63(3) of the Act, as enacted by subsection 173(2) of the Employment Insurance Act, chapter 23 of the Statutes of Canada, 1996, is replaced by the following:
	(b) all amounts that are included, or that would, but for paragraph 81(1)(a), be included, because of section 6 or 7 or paragraph 56(1)(n), (o) or (r) , in comput ing the taxpayer's income,
	(3) Subsection (1) applies after 1992 and before 1998.
	(4) Subsection (2) applies after 1997.
	31. (1) Subparagraph 66(4)(b)(ii) of the Act is amended by adding the following after clause (C):
	determined as if no deductions were allowed under this subsection, subsec tions (1) and (3), section 65 and subsec tions 66.1(2) and (3).
	(2) The portion of paragraph 66(4)(b) of the Act after subparagraph (ii) is repealed.
	(3) Paragraph 66(11.4)(b) of the Act is replaced by the following:
	(b) within the 12-month period that ended immediately before that time, the corpora tion or a partnership of which it was a majority interest partner acquired a Cana dian resource property or a foreign resource property (other than a property that was owned by the corporation or partnership or a person that would, if section 251.1 were read without reference to the definition ``controlled'' in subsection 251.1(3), be affiliated with the corporation throughout the period that began immediately before the 12-month period began and ended at the time the property was acquired by the corporation or partnership), and
	(4) The portion of subsection 66(12.66) of the Act after paragraph (e) is replaced by the following:
	the corporation is for the purpose of subsec tion (12.6) or for the purposes of subsection (12.601) and paragraph (12.602)(b), as the case may be , deemed to have incurred the ex penses on the last day of the year .
	(5) The portion of paragraph 66(12.75)(c) of the Act before subparagraph (i) is replaced by the following:
	(c) where the penalty is in respect of a renunciation referred to in subsection (12.741) , the greater of
	(6) Paragraph (c) of the definition ``Ca nadian exploration and development ex penses'' in subsection 66(15) of the Act is replaced by the following:
	(c) the cost to the taxpayer of any Canadian resource property acquired by the taxpayer after 1971 ,
	(7) Subsections (1) and (2) apply to taxation years that end after May 6, 1974.
	(8) Subsection (3) applies after April 26, 1995.
	(9) Subsection (4) applies to expenses incurred after 1992.
	(10) Subsection (5) applies to renunci ations purported to be made after February 1993.
	(11) Subsection (6) applies to taxation years that begin after 1984.
	32. (1) Section 66.6 of the Act is replaced by the following:
Acquisition from tax-exempt	66.6 Where a corporation acquires , by purchase, amalgamation, merger, winding-up or otherwise, all or substantially all of the Canadian resource properties or foreign re source properties of a person whose taxable income is exempt from tax under this Part, subsection 29(25) of the Income Tax Applica tion Rules and subsections 66.7(1) to (5) do not apply to the corporation in respect of the acquisition of the properties.
	(2) Subsection (1) applies to acquisitions that occur after April 26, 1995, other than an acquisition that occurs before 1996 and that was required by an agreement in writing entered into before April 27, 1995.
	33. (1) Subparagraph 66.7(1)(b)(iii) of the Act is replaced by the following:
	(iii) all amounts added because of sub section 80(13) in computing the amount determined under subparagraph (i).
	(2) Subparagraph 66.7(2)(b)(iv) of the Act is replaced by the following:
	(iv) all amounts added because of subsec tion 80(13) in computing the amount determined under subparagraph (i),
	(3) Subparagraph 66.7(3)(b)(iii) of the Act is replaced by the following:
	(iii) all amounts added because of sub section 80(13) in computing the amount determined under subparagraph (i).
	(4) Subparagraph 66.7(4)(b)(iii) of the Act is replaced by the following:
	(iii) all amounts added because of sub section 80(13) in computing the amount determined under subparagraph (i).
	(5) Subparagraph 66.7(5)(b)(iii) of the Act is replaced by the following:
	(iii) all amounts added because of sub section 80(13) in computing the amount determined under subparagraph (i).
	(6) Paragraph 66.7(10)(b) of the Act is replaced by the following:
	(b) a corporation ceases on or before April 26, 1995 to be exempt from tax under this Part on its taxable income,
	(7) Subsection 66.7(10) of the Act is amended by adding the following after paragraph (c):
	(c.1) where the corporation did not own a foreign resource property immediately be fore that time, the corporation is deemed to have owned a foreign resource property immediately before that time,
	(8) Subsections (1) to (5) apply to taxation years that end after February 21, 1994.
	(9) Subsection (6) applies after April 26, 1995.
	(10) Subsection (7) applies to taxation years that end after February 17, 1987.
	34. (1) Paragraph 69(5)(a) of the Act is replaced by the following:
	(a) the corporation is deemed , for the purpose of computing its income for the year, to have disposed of the property immediately before the winding-up for proceeds equal to its fair market value at that time;
	(2) Subsection 69(5) of the Act is amended by adding the word ``and'' at the end of paragraph (c) and by replacing paragraphs (d) and (e) with the following:
	(d) subsections 13(21.2), 14(12), 18(15) and 40(3.4) and (3.6) do not apply in respect of any property disposed of on the winding- up.