Limitation re specified employees	(9.1) For the purposes of clauses (8)(a)(ii)(A) and (B), expenditures incurred by a taxpayer in a taxation year do not include expenses incurred in the year in respect of salary or wages of a specified employee of the taxpayer to the extent that those expenses exceed the amount determined by the formula
	A x B/365
	where
	A is 5 times the Year's Maximum Pensionable Earnings (as determined under section 18 of the Canada Pension Plan) for the calendar year in which the taxation year ends; and
	B is the number of days in the taxation year on which the employee is a specified employee of the taxpayer.
Associated corporations	(9.2) Where
	(a) in a taxation year of a corporation that ends in a calendar year, the corporation employs an individual who is a specified employee of the corporation,
	(b) the corporation is associated with another corporation (in this subsection and subsection (9.3) referred to as the ``associated corporation'') in a taxation year of the associated corporation that ends in the calendar year, and
	(c) the individual is a specified employee of the associated corporation in the taxation year of the associated corporation that ends in the calendar year,
	for the purposes of clauses (8)(a)(ii)(A) and (B), the expenditures incurred by the corporation in its taxation year or years that end in the calendar year and by each associated corporation in its taxation year or years that end in the calendar year do not include expenses incurred in those taxation years in respect of salary or wages of the specified employee unless the corporation and all of the associated corporations have filed with the Minister an agreement referred to in subsection (9.3) in respect of those years.
Agreement among associated corporations	(9.3) Where all of the members of a group of associated corporations of which an individual is a specified employee file, in respect of their taxation years that end in a particular calendar year, an agreement with the Minister in which they allocate an amount in respect of the individual to one or more of them for those years and the amount so allocated or the total of the amounts so allocated, as the case may be, does not exceed the amount determined by the formula
	A x B/365
	where
	A is 5 times the Year's Maximum Pensionable Earnings (as determined under section 18 of the Canada Pension Plan) for the particular calendar year, and
	B is the lesser of 365 and the number of days in those taxation years on which the individual was a specified employee of one or more of the corporations,
	the maximum amount that may be claimed in respect of salary or wages of the individual for the purposes of clauses (8)(a)(ii)(A) and (B) by each of the corporations for each of those years is the amount so allocated to it for each of those years.
Filing	(9.4) An agreement referred to in subsection (9.3) is deemed not to have been filed by a taxpayer unless
	(a) it is in prescribed form; and
	(b) where the taxpayer is a corporation, it is accompanied by
	(i) where its directors are legally entitled to administer its affairs, a certified copy of their resolution authorizing the agreement to be made, and
	(ii) where its directors are not legally entitled to administer its affairs, a certified copy of the document by which the person legally entitled to administer its affairs authorized the agreement to be made.
Deemed corporation	(9.5) For the purposes of subsections (9.2) and (9.3) and this subsection, each
	(a) individual related to a particular corporation,
	(b) partnership of which a majority interest partner is
	(i) an individual related to a particular corporation, or
	(ii) a corporation associated with a particular corporation, and
	(c) limited partnership of which a member whose liability as a member is not limited is
	(i) an individual related to a particular corporation, or
	(ii) a corporation associated with a particular corporation,
	is deemed to be a corporation associated with the particular corporation.
	(2) Subsection (1) applies to taxation years that begin after March 5, 1996.
	7. (1) Clause 53(1)(e)(i)(B) of the Act is replaced by the following:
	(B) paragraph (i), paragraphs 12(1)(o) and (z.5) , 18(1)(m), 20(1)(v.1) and 29(1)(b) and (2)(b), section 55, subsections 69(6) and (7) and paragraph 82(1)(b) of this Act and paragraphs 20(1)(gg) and 81(1)(r) and (s) of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, and the provisions of the Income Tax Application Rules relating to income from the operation of new mines,
	(2) Clause 53(2)(c)(i)(B) of the Act is replaced by the following:
	(B) paragraphs 12(1)(o) and (z.5) , 18(1)(m) and 20(1)(v.1), section 31, subsection 40(2), section 55 and subsections 69(6) and (7) of this Act and paragraphs 20(1)(gg) and 81(1)(r) and (s) of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, and
	(3) Subsections (1) and (2) apply for the purpose of computing the adjusted cost base of property after 1996.
	8. (1) Paragraphs 56(1)(b) and (c) of the Act are replaced by the following:
Support	(b) the total of all amounts each of which is an amount determined by the formula
	A - (B + C)
	where
	A is the total of all amounts each of which is a support amount received after 1996 and before the end of the year by the taxpayer from a particular person where the taxpayer and the particular person were living separate and apart at the time the amount was received,
	B is the total of all amounts each of which is a child support amount that became receivable by the taxpayer from the particular person under an agreement or order on or after its commencement day and before the end of the year in respect of a period that began after its commencement day, and
	C is the total of all amounts each of which is a support amount received after 1996 by the taxpayer from the particular person and included in the taxpayer's income for a preceding taxation year;
	(2) Paragraph 56(1)(d.2) of the Act is amended by striking out the word ``or'' at the end of subparagraph (i), by adding the word ``or'' at the end of subparagraph (ii) and by adding the following after subparagraph (ii):
	(iii) made pursuant to or under a deferred profit sharing plan by a trustee under the plan to purchase the annuity for a beneficiary under the plan;
	(3) Subsection 56(12) of the Act is repealed.
	(4) Subsections (1) and (3) apply to amounts received after 1996.
	(5) Subsection (2) applies to the 1996 and subsequent taxation years.
	9. (1) Subsection 56.1(1) of the Act is replaced by the following:
Support	56.1 (1) For the purposes of paragraph 56(1)(b) and subsection 118(5), where an order or agreement, or any variation thereof, provides for the payment of an amount to a taxpayer or for the benefit of the taxpayer, children in the taxpayer's custody or both the taxpayer and those children, the amount or any part thereof
	(a) when payable, is deemed to be payable to and receivable by the taxpayer; and
	(b) when paid, is deemed to have been paid to and received by the taxpayer.
	(2) The portion of subsection 56.1(2) of the Act before the formula is replaced by the following:
Agreement	(2) For the purposes of section 56, this section and subsection 118(5) , the amount determined by the formula
	(3) The description of A in subsection 56.1(2) of the Act is replaced by the following:
	A is the total of all amounts each of which is an amount (other than an amount that is otherwise a support amount ) that became payable by a person in a taxation year, under an order of a competent tribunal or under a written agreement, in respect of an expense (other than an expenditure in respect of a self-contained domestic establishment in which the person resides or an expenditure for the acquisition of tangible property that is not an expenditure on account of a medical or education expense or in respect of the acquisition, improvement or maintenance of a self-contained domestic establishment in which the taxpayer described in paragraph (a) or (b) resides) incurred in the year or the preceding taxation year for the maintenance of a taxpayer, children in the taxpayer's custody or both the taxpayer and those children, where the taxpayer is
	(a) the person's spouse or former spouse, or
	(b) where the amount became payable under an order made by a competent tribunal in accordance with the laws of a province, an individual who is the parent of a child of whom the person is a natural parent ,
	and
	(4) The portion of subsection 56.1(2) of the Act after the description of B is replaced by the following:
	is , where the order or written agreement, as the case may be, provides that this subsection and subsection 60.1(2) shall apply to any amount paid or payable thereunder, deemed to be an amount payable to and receivable by the taxpayer as an allowance on a periodic basis, and the taxpayer is deemed to have discretion as to the use of that amount .
	(5) Subsection 56.1(3) of the Act is replaced by the following:
Prior payments	(3) For the purposes of this section and section 56, where a written agreement or order of a competent tribunal made at any time in a taxation year provides that an amount received before that time and in the year or the preceding taxation year is to be considered to have been paid and received thereunder,
	(a) the amount is deemed to have been received thereunder; and
	(b) the agreement or order is deemed, except for the purpose of this subsection, to have been made on the day on which the first such amount was received.
	(6) Section 56.1 of the Act is amended by adding the following after subsection (3):
Definitions	(4) The definitions in this subsection apply in this section and section 56.
``child support amount'' « pension alimentaire pour enfants »	``child support amount'' means any support amount that is not identified in the agreement or order under which it is receivable as being solely for the support of a recipient who is a spouse or former spouse of the payer or who is a parent of a child of whom the payer is a natural parent.
``commence- ment day'' « date exécution »	``commencement day'' at any time of an agreement or order means
	(a) where the agreement or order is made after April 1997, the day it is made; and
	(b) where the agreement or order is made before May 1997, the day, if any, that is after April 1997 and is the earliest of
	(i) the day specified as the commencement day of the agreement or order by the payer and recipient under the agreement or order in a joint election filed with the Minister in prescribed form and manner,
	(ii) where the agreement or order is varied after April 1997 to change the child support amounts payable to the recipient, the day on which the first payment of the varied amount is required to be made,
	(iii) where a subsequent agreement or order is made after April 1997, the effect of which is to change the total child support amounts payable to the recipient by the payer, the commencement day of the first such subsequent agreement or order, and
	(iv) the day specified in the agreement or order, or any variation thereof, as the commencement day of the agreement or order for the purposes of this Act.
``support amount'' « pension alimentaire »	``support amount'' means an amount payable or receivable as an allowance on a periodic basis for the maintenance of the recipient, children of the recipient or both the recipient and children of the recipient, if the recipient has discretion as to the use of the amount, and
	(a) the recipient is the spouse or former spouse of the payer, the recipient and payer are living separate and apart because of the breakdown of their marriage and the amount is receivable under an order of a competent tribunal or under a written agreement; or
	(b) the payer is a natural parent of a child of the recipient and the amount is receivable under an order made by a competent tribunal in accordance with the laws of a province.
	(7) Subsections (1) to (5) apply to amounts received after 1996.
	(8) Subsection (6) applies after 1996, except that a support amount, as defined in subsection 56.1(4) of the Act, as enacted by subsection (6), does not include an amount that if paid and received would, but for this Act, not be included in computing the income of the recipient of the amount.
	10. (1) Paragraphs 60(b) and (c) of the Act are replaced by the following:
Support	(b) the total of all amounts each of which is an amount determined by the formula
	A - (B + C)
	where
	A is the total of all amounts each of which is a support amount paid after 1996 and before the end of the year by the taxpayer to a particular person, where the taxpayer and the particular person were living separate and apart at the time the amount was paid,
	B is the total of all amounts each of which is a child support amount that became payable by the taxpayer to the particular person under an agreement or order on or after its commencement day and before the end of the year in respect of a period that began after its commencement day, and
	C is the total of all amounts each of which is a support amount paid by the taxpayer to the particular person after 1996 and deductible in computing the taxpayer's income for a preceding taxation year;
	(2) Subsection (1) applies to amounts received after 1996.
	11. (1) Subsection 60.1(1) of the Act is replaced by the following:
Support	60.1 (1) For the purposes of paragraph 60(b) and subsection 118(5 ), where an order or agreement, or any variation thereof, provides for the payment of an amount by a taxpayer to a person or for the benefit of the person, children in the person's custody or both the person and those children, the amount or any part thereof
	(a) when payable, is deemed to be payable to and receivable by that person; and