(d.1) for the purposes of subsection 20(22) and subparagraph (3)(a)(ii.1),
	(i) the insurer is deemed to have carried on the business referred to in paragraph (a) in Canada in the preceding taxation year referred to in paragraph (c), and
	(ii) the amounts, if any, that would have been prescribed in respect of the insurer for the purposes of paragraphs (4)(b) and 12(1)(e.1) for that preceding year in respect of the insurance policies of that business are deemed to have been included in computing its income for that year,
	(14) The portion of paragraph 138(11.92)(c) of the Act before subparagraph (i) is replaced by the following:
	(c) for the purpose of determining the amount of the gross investment revenue required to be included in computing the income of the vendor and the purchaser under subsection (9) and the amount of the gains and losses of the vendor and the purchaser from designated insurance property for the year
	(15) Paragraph 138(11.94)(b) of the Act is replaced by the following:
	(b) the transferor has, at that time or within 60 days thereafter, in the year transferred all or substantially all of the property used or held by it in the year in the course of carrying on that insurance business in Canada to a corporation resident in Canada (in this subsection referred to as the ``transferee'') that is a subsidiary wholly-owned corporation of the transferor which, immediately after that time, began to carry on that insurance business in Canada and the consideration for the transfer includes shares of the capital stock of the transferee,
	(16) The definitions ``accumulated 1968 deficit'', ``property used by it in the year in, or held by it in the year in the course of'', and ``relevant authority'' in subsection 138(12) of the Act are repealed.
	(17) Subsection 138(12) of the Act is amended by adding the following in alphabetical order:
``designated insurance property'' « bien d'assurance désigné »	``designated insurance property'' for a taxation year of an insurer (other than an insurer resident in Canada that at no time in the year carried on a life insurance business) that, at any time in the year, carried on an insurance business in Canada and in a country other than Canada, means property determined in accordance with prescribed rules except that, in its application to any taxation year, ``designated insurance property'' for the 1996 or a preceding taxation year means property that was, under this subsection as it read in its application to that year, property used by it in the year in, or held by it in the year in the course of carrying on an insurance business in Canada;
	(18) Subsections (1), (4) to (7), (9), (10) and (15) to (17) apply to the 1997 and subsequent taxation years.
	(18.1) Subsections (2), (3), (8) and (12) apply to the 1996 and subsequent taxation years.
	(19) Subsection (11) applies to the transfer by an insurer of an insurance business in its 1997 or a subsequent taxation year.
	(19.1) Paragraph 138(11.91)(d) of the Act, as enacted by subsection (13), applies to the 1997 and subsequent taxation years.
	(19.2) Paragraph 138(11.91)(d.1) of the Act, as enacted by subsection (13), applies to the 1996 and subsequent taxation years.
	(20) Subsection (14) applies to the disposition by an insurer of an insurance business or a line of business of an insurance business in its 1997 or a subsequent taxation year.
	40. (1) Sections 142 and 142.1 of the Act are repealed.
	(2) Subsection (1) applies to the 1997 and subsequent taxation years.
	41. (1) The portion of paragraph (b) of the definition ``unused RRSP deduction room'' in subsection 146(1) of the Act before subparagraph (i) is replaced by the following:
	(b) for taxation years that end after 1990,
	(2) Paragraph (b) of the definition ``unused RRSP deduction room'' in subsection 146(1) of the Act is amended by striking out the word ``and'' at the end of subparagraph (i) and by repealing subparagraph (ii).
	(3) Paragraph 146(2)(b.4) of the Act is replaced by the following:
	(b.4) the plan does not provide for maturity after the end of the year in which the annuitant attains 69 years of age;
	(4) Section 146 of the Act is amended by adding the following after subsection (13.1):
Maturity after age 69	(13.2) For the purpose of subsection (12), where a retirement savings plan accepted for registration before 1997 does not mature by the end of the particular year in which the annuitant under the plan attains 69 years of age,
	(a) the plan is deemed to have been amended immediately after the particular year; and
	(b) the plan as amended is deemed not to comply with the requirements of this section for its acceptance by the Minister for registration for the purposes of this Act.
Notice	(13.3) Where a retirement savings plan accepted for registration before 1997 does not prevent maturity after the particular year in which the annuitant under the plan attains 69 years of age, the issuer of the plan shall, before July of the particular year, notify the annuitant in writing that, pursuant to subsections (12) and (13.2), the plan will cease to be a registered retirement savings plan if it does not mature by the end of the particular year, except that no such notification is required where, before that month,
	(a) the plan has matured; or
	(b) arrangements have been made for the plan to mature, or for the property under the plan to be transferred or otherwise paid out of the plan, by the end of the particular year.
	(5) Subsections (3) and (4) apply after 1996, except that
	(a) subsection (3) does not apply to a retirement savings plan accepted for registration before 1997;
	(b) subsections (3) and (4) do not apply to a retirement savings plan where the annuitant under the plan attained 70 years of age before 1997;
	(c) in applying paragraph 146(2)(b.4) of the Act, as enacted by subsection (3), and subsections 146(13.2) and (13.3) of the Act, as enacted by subsection (4), to a retirement savings plan where the annuitant under the plan attained 69 years of age in 1996, the references in those provisions to ``69 years of age'' shall be read as ``70 years of age'';
	(d) subsection (4) does not apply to a retirement savings plan where an annuity contract was issued before March 6, 1996 under, pursuant to or as the plan to provide the retirement income under the plan and, under the terms and conditions of the contract as they read immediately before that day,
	(i) the day on which annuity payments are to begin under the plan is fixed and determined and is after the year in which the annuitant attains
	(A) 69 years of age, where the annuitant had not attained that age before 1997, or
	(B) 70 years of age, where the annuitant attained 69 years of age in 1996, and
	(ii) the amount and timing of each annuity payment are fixed and determined; and
	(e) subsection (4) does not apply to a retirement savings plan that is part of a life insurance policy that was issued before March 6, 1996 and that has a life insurance component that is not a retirement savings plan where, under the terms and conditions of the policy as they read immediately before that day,
	(i) the amount of each premium, if any, subsequently payable in respect of the life insurance component of the policy, and a date by which each such premium is to be paid, are fixed and determined,
	(ii) the amount payable under the policy because of the death of the annuitant (determined without reference to any amount payable as, on account of, in lieu of payment of or in satisfaction of, a policy dividend or related interest) is fixed and determined, and
	(iii) insurance on the life of the annuitant is provided under the policy for a period of time after the year in which the annuitant attains
	(A) 69 years of age, where the annuitant had not attained that age before 1997, or
	(B) 70 years of age, where the annuitant attained 69 years of age in 1996.
	(6) Where, because of paragraph (5)(e), subsection (4) does not apply to a retirement savings plan that is part of a life insurance policy, any part of a premium paid under the policy after March 5, 1996 that was not fixed and determined under the terms and conditions of the policy as they read at the end of that day is deemed, for the purposes of subsections 146(5), (5.1) and (8.2) of the Act, not to have been paid under the policy.
	42. (1) The definition ``qualifying educational program'' in subsection 146.1(1) of the Act is replaced by the following:
``qualifying educational program'' « programme de formation admissible »	``qualifying educational program'' has the meaning that would be assigned by the definition of that expression in subsection 118.6(1) if that definition were read without reference to paragraph (a);
	(2) Paragraph 146.1(2)(k) of the Act is replaced by the following:
	(k) the plan provides that the total of all payments made into the plan in respect of a beneficiary for a year shall not exceed $2,000;
	(3) Subsection (1) applies to the 1996 and subsequent taxation years.
	(4) Subsection (2) applies to the 1996 and subsequent taxation years, except in respect of plans entered into before February 21, 1990.
	43. (1) Subsection 147(1) of the Act is amended by adding the following in alphabetical order:
``licensed annuities provider'' « fournisseur de rentes autorisé »	``licensed annuities provider'' means a person licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada an annuities business;
	(2) Section 147 of the Act is amended by adding the following after subsection (1):
Participating employer	(1.1) An employer is considered to participate in a profit sharing plan where the employer makes or has made payments under the plan to a trustee in trust for the benefit of employees or former employees of the employer.
	(3) Paragraph 147(2)(k) of the Act is replaced by the following:
	(k) the plan provides that, in respect of each beneficiary under the plan who has been employed by an employer who participates in the plan, all amounts vested under the plan in the beneficiary become payable
	(i) to the beneficiary, or
	(ii) in the event of the beneficiary's death, to another person designated by the beneficiary or to the beneficiary's estate,
	not later than the earlier of
	(iii) the end of the year in which the beneficiary attains 69 years of age, and
	(iv) 90 days after the earliest of
	(A) the death of the beneficiary,
	(B) the day on which the beneficiary ceases to be employed by an employer who participates in the plan where, at the time of ceasing to be so employed, the beneficiary is not employed by another employer who participates in the plan, and
	(C) the termination or winding-up of the plan,
	except that the plan may provide that, on election by the beneficiary, all or any part of the amounts payable to the beneficiary may be paid
	(v) in equal instalments payable not less frequently than annually over a period not exceeding 10 years from the day on which the amount became payable, or
	(vi) by a trustee under the plan to a licensed annuities provider to purchase for the beneficiary an annuity where
	(A) payment of the annuity is to begin not later than the end of the year in which the beneficiary attains 69 years of age, and
	(B) the guaranteed term, if any, of the annuity does not exceed 15 years;
	(4) Subparagraph 147(2)(k.1)(ii) of the Act is replaced by the following:
	(ii) an amount referred to in paragraph (10)(b),
	(ii.1) an amount paid pursuant to or under the plan by a trustee under the plan to a licensed annuities provider to purchase for a beneficiary under the plan an annuity to which subparagraph (k)(vi) applies,
	(5) Subsection 147(10) of the Act is replaced by the following:
Amounts received taxable	(10) There shall be included in computing the income of a beneficiary under a deferred profit sharing plan for a taxation year the amount, if any, by which
	(a) the total of all amounts received by the beneficiary in the year from a trustee under the plan (other than as a result of acquiring an annuity described in subparagraph (2)(k)(vi) under which the beneficiary is the annuitant)
	exceeds
	(b) the total of all amounts each of which is an amount determined for the year under subsection (10.1), (11) or (12) in relation to the plan and in respect of the beneficiary.
	(6) Section 147 of the Act is amended by adding the following after subsection (10.5):
Commence- ment of annuity after age 69	(10.6) Where an amount is paid before 1997 pursuant to or under a deferred profit sharing plan to purchase for a beneficiary under the plan an annuity to which subparagraph (2)(k)(vi) applies, and payment of the annuity has not begun by the end of the particular year in which the beneficiary attains 69 years of age,
	(a) the beneficiary is deemed to have disposed of the annuity immediately after the particular year and to have received as proceeds of the disposition an amount equal to the fair market value of the annuity at the end of the particular year;
	(b) the beneficiary is deemed to have acquired immediately after the particular year an interest in the annuity as a separate and newly issued annuity contract at a cost equal to the amount referred to in paragraph (a); and
	(c) the issue and acquisition of the contract referred to in paragraph (b) are deemed not to be pursuant to or under a deferred profit sharing plan.
	(7) Subsections (1) and (4) apply after 1991.
	(8) Subsection (2) applies after 1988.
	(9) Subsections (3) and (6) apply after 1996, except that
	(a) where a beneficiary under a profit sharing plan attained 70 years of age before 1997,
	(i) in applying subparagraph 147(2)(k)(iii) of the Act, as enacted by subsection (3), in respect of the beneficiary, that paragraph shall be read as follows:
	(iii) 90 days after the day on which the beneficiary attains 71 years of age, and
	(ii) in applying clause 147(2)(k)(vi)(A) of the Act, as enacted by subsection (3), in respect of the beneficiary, the reference in that clause to ``the end of the year in which the beneficiary attains 69 years of age'' shall be read as ``the day on which the beneficiary attains 71 years of age'', and