(a) to any redemption that occurs before 1998 of a share of the capital stock of a corporation that was registered under subsection 204.81(1) of the Act, where an amount determined under regulations made for the purpose of clause 204.81(1)(c)(v)(F) of the Act is directed to be remitted to the Receiver General in order to permit the redemption; and
	(b) to any disposition that occurs before 1998, where an amount is required to be remitted to the government of a province as a consequence of the disposition and a portion of the amount is in respect of the recovery of a tax credit that is provided under subsection 127.4(2) of the Act in respect of the share.
	(3) Subsections 211.8(2) and (3) of the Act, as enacted by subsection (1), apply to redemptions, acquisitions and cancellations that occur after the day on which this Act is assented to.
	(4) Section 211.9 of the Act, as enacted by subsection (1), applies after the day on which this Act is assented to, except that
	(a) the reference to ``15%'' in subparagraph 211.9(b)(i) of the Act, as enacted by that subsection, shall be read as ``20%'' in respect of a disposition of a share the original acquisition of which was before March 6, 1996; and
	(b) any application filed under that section before 1998 is deemed to be filed on a timely basis.
	(5) Part XII.6 of the Act, as enacted by subsection (1), applies to the 1997 and subsequent calendar years.
	63. (1) Paragraph 212(1)(f) of the Act is repealed.
	(2) Subsection (1) applies to amounts paid and credited after April 1997.
	64. (1) Section 217 of the Act is replaced by the following:
Alternative re Canadian benefits	217. (1) In this section, a non-resident person's ``Canadian benefits'' for a taxation year is the total of all amounts each of which is an amount paid or credited in the year and in respect of which tax under this Part would, but for this section, be payable by the person because of any of paragraphs 212(1)(h), (j) to (m) and (q).
Part I return	(2) No tax is payable under this Part in respect of a non-resident person's Canadian benefits for a taxation year if the person
	(a) files with the Minister, within 6 months after the end of the year, a return of income under Part I for the year; and
	(b) elects in the return to have this section apply for the year.
Taxable income earned in Canada	(3) Where a non-resident person elects under paragraph (2)(b) for a taxation year, for the purposes of Part I
	(a) the person is deemed to have been employed in Canada in the year; and
	(b) the person's taxable income earned in Canada for the year is deemed to be the greater of
	(i) the amount that would, but for subparagraph (ii), be the person's taxable income earned in Canada for the year if
	(A) paragraph 115(1)(a) included the following subparagraph after subparagraph (i):
	``(i.1) the non-resident person's Canadian benefits for the year, within the meaning assigned by subsection 217(1),'', and
	(B) paragraph 115(1)(f) were read as follows:
	``(f) such of the other deductions permitted for the purpose of computing taxable income as can reasonably be considered wholly applicable to the amounts described in subparagraphs (a)(i) to (vi).''; and
	(ii) the person's income for the year, minus the total of such of the deductions permitted for the purpose of computing taxable income as can reasonably be considered wholly applicable to the amounts described in subparagraphs 115(1)(a)(i) to (vi).
Tax credits - limitation	(4) Sections 118 to 118.91 and 118.94 do not apply in computing the tax payable under Part I for a taxation year by a non-resident person who elects under paragraph (2)(b) for the year, unless
	(a) where section 114 applies to the person for the year, all or substantially all of the person's income for the year is included in computing the person's taxable income for the year; or
	(b) in any other case, all or substantially all of the person's income for the year is included in computing the amount determined under subparagraph (3)(b)(i) in respect of the person for the year.
Tax credits allowed	(5) In computing the tax payable under Part I for a taxation year by a non-resident person to whom neither paragraph (4)(a) nor paragraph (4)(b) applies for the year there may, notwithstanding section 118.94 and subsection (4), be deducted the lesser of
	(a) the total of
	(i) such of the amounts that would have been deductible under any of section 118.2, subsections 118.3(2) and (3) and sections 118.6, 118.8 and 118.9 in computing the person's tax payable under Part I for the year if the person had been resident in Canada throughout the year, as can reasonably be considered wholly applicable, and
	(ii) the amounts that would have been deductible under any of sections 118 and 118.1, subsection 118.3(1) and sections 118.5 and 118.7 in computing the person's tax payable under Part I for the year if the person had been resident in Canada throughout the year, and
	(b) the appropriate percentage for the year of the person's Canadian benefits for the year.
Special credit	(6) In computing the tax payable under Part I for a taxation year by a non-resident who elects under paragraph (2)(b) for the year, there may be deducted the amount determined by the formula
	A x [(B - C) / B]
	where
	A is the amount of tax under Part I that would, but for this subsection, be payable by the person for the year;
	B is the amount determined under subparagraph (3)(b)(ii) in respect of the person for the year; and
	C is the amount determined under subparagraph (3)(b)(i) in respect of the person for the year.
	(2) Subsection (1) applies to the 1997 and subsequent taxation years.
	65. (1) The portion of subparagraph 219(4)(a)(i.1) of the Act before clause (A) is replaced by the following:
	(i.1) where, in any particular taxation year that began before the end of the year, the insurer transferred to a taxable Canadian corporation with which it did not deal at arm's length any designated insurance property of the insurer for the particular year, and
	(2) Subsection 219(5.1) of the Act is replaced by the following:
Additional tax on insurer	(5.1) Where a non-resident insurer ceases in a taxation year to carry on all or substantially all of an insurance business in Canada, it shall, on or before its filing-due date for the year, pay a tax for the year equal to 25% of the amount, if any, by which
	(a) that portion of the amount determined under paragraph (4)(a) for the year in respect of the insurer that can reasonably be attributed to the business, including the disposition by it of property that was its designated insurance property in respect of the business for the year in which the disposition occurred,
	exceeds
	(b) the amount the insurer and a qualified related corporation of the insurer jointly elect in accordance with subsection (5.2) for the year in respect of the business.
	(3) The definitions ``accumulated 1968 deficit'' and ``attributed surplus for the year'' in subsection 219(7) of the Act are replaced by the following:
``accumulated 1968 deficit'' « déficit accumulé pour 1968 »	``accumulated 1968 deficit'' of a life insurer means such amount as can be established by the insurer to be its deficit as of the end of its 1968 taxation year from carrying on its life insurance business in Canada on the assumption that the amounts of its assets and liabilities (including reserves of any kind)
	(a) as of the end of any taxation year before its 1968 taxation year, were the amounts thereof determined for the purposes of the Superintendent of Insurance for Canada or other similar officer, and
	(b) as of the end of its 1968 taxation year, were
	(i) in respect of depreciable property, the capital cost thereof as of the first day of its 1969 taxation year,
	(ii) in respect of policy reserves, the insurer's maximum tax actuarial reserves for its 1968 taxation year for life insurance policies issued by it in the course of carrying on its life insurance business in Canada, and
	(iii) in respect of other assets and liabilities, the amounts thereof determined as of the end of that year for the purpose of computing its income for its 1969 taxation year;
``attributed surplus'' « surplus attribué »	``attributed surplus'' of an insurer for a taxation year has the meaning assigned by regulation;
	(4) Subsections (1) to (3) apply to the 1997 and subsequent taxation years.
	66. (1) Section 220 of the Act is amended by adding the following after subsection (5):
Assignment by corporation	(6) Notwithstanding section 67 of the Financial Administration Act and any other provision of a law of Canada or a province, a corporation may assign any amount payable to it under this Act.
Effect of assignment	(7) An assignment referred to in subsection (6) is not binding on Her Majesty in right if Canada and, without limiting the generality of the foregoing,
	(a) the Minister is not required to pay to the assignee the assigned amount;
	(b) the assignment does not create any liability of Her Majesty in right of Canada to the assignee; and
	(c) the rights of the assignee are subject to all equitable and statutory rights of set-off in favour of Her Majesty in right of Canada.
	(2) Subsection (1) applies to assignments made after March 5, 1996.
	67. (1) The portion of subsection 227(5) of the Act before subparagraph (b)(ii) is replaced by the following:
Payments by trustees, etc.	(5) Where a specified person in relation to a particular person (in this subsection referred to as the ``payer'') has any direct or indirect influence over the disbursements, property, business or estate of the payer and the specified person, alone or together with another person, authorizes or otherwise causes a payment referred to in subsection 135(3) or 153(1), or on or in respect of which tax is payable under Part XII.5 or XIII, to be made by or on behalf of the payer, the specified person
	(a) is, for the purposes of subsections 135(3) and 153(1), section 215 and this section, deemed to be a person who made the payment;
	(a.1) is, for the purpose of subsection 211.8(2), deemed to be a person who redeemed, acquired or cancelled a share and made the payment as a consequence of the redemption, acquisition or cancellation;
	(b) is jointly and severally liable with the payer to pay to the Receiver General
	(i) all amounts payable by the payer because of any of subsections 135(3), 153(1) and 211.8(2) and section 215 in respect of the payment, and
	(2) Subsection 227(6) of the Act is replaced by the following:
Excess withheld, returned or applied	(6) Where a person on whose behalf an amount has been paid under Part XII.5 or XIII to the Receiver General was not liable to pay tax under that Part or where the amount so paid is in excess of the amount that the person was liable to pay, the Minister shall, on written application made no later than 2 years after the end of the calendar year in which the amount was paid, pay to the person the amount so paid or such part of it as the person was not liable to pay, unless the person is or is about to become liable to make a payment to Her Majesty in right of Canada, in which case the Minister may apply the amount otherwise payable under this subsection to that liability and notify the person of that action.
	(3) Subsection 227(7) of the Act is replaced by the following:
Application for assessment	(7) Where, on application under subsection (6) by or on behalf of a person to the Minister in respect of an amount paid under Part XII.5 or XIII to the Receiver General, the Minister is not satisfied
	(a) that the person was not liable to pay any tax under that Part, or
	(b) that the amount paid was in excess of the tax that the person was liable to pay,
	the Minister shall assess any amount payable under that Part by the person and send a notice of assessment to the person, and sections 150 to 163, subsections 164(1) and (1.4) to (7), sections 164.1 to 167 and Division J of Part I apply with any modifications that the circumstances require.
	(4) The portion of subsection 227(8.3) of the Act before paragraph (a) is replaced by the following:
Interest on amounts not deducted or withheld	(8.3) A person who fails to deduct or withhold any amount as required by subsection 135(3), 153(1) or 211.8(2) or section 215 shall pay to the Receiver General interest on the amount at the prescribed rate, computed
	(5) Subsection 227(8.3) of the Act is amended by striking out the word ``and'' at the end of paragraph (a), by adding the word ``and'' at the end of paragraph (b) and by adding the following after paragraph (b):
	(c) in the case of an amount required by subsection 211.8(2) to be withheld, from the day on or before which the amount was required to be remitted to the Receiver General to the day of the payment of the amount to the Receiver General.
	(6) Section 227 of the Act is amended by adding the following after subsection (10):
Part XII.5	(10.01) The Minister may at any time assess any amount payable under Part XII.5 by a person resident in Canada and, where the Minister sends a notice of assessment to that person, Divisions I and J of Part I apply with any modifications that the circumstances require.
	(7) Paragraphs 227(10.1)(a) to (b) of the Act are replaced by the following:
	(a) any amount payable under section 116 or subsection (9), (9.2), (9.3) or (9.4) by any person,
	(b) any amount payable under subsection (10.2) by any person as a consequence of a failure by a non-resident person to remit any amount, and
	(c) any amount payable under Part XII.5 or XIII by any non-resident person,
	(8) Subsection 227(15) of the Act is replaced by the following:
Partnership included in ``person''	(15) In this section, a reference to a ``person'' with respect to any amount deducted or withheld or required to be deducted or withheld is deemed to include a partnership.
	68. (1) Section 233 of the Act is replaced by the following:
Information return	233. (1) Every person shall, on written demand from the Minister served personally or otherwise, whether or not the person has filed an information return as required by this Act or the regulations, file with the Minister, within such reasonable time as is stipulated in the demand, the information return if it has not been filed or such information as is designated in the demand.