(a) when payable, is deemed to be payable to and receivable by that person; and
	(b) when paid, is deemed to have been paid to and received by that person.
	(2) The portion of subsection 60.1(2) of the Act before the formula is replaced by the following:
Agreement	(2) For the purposes of section 60, this section and subsection 118(5), the amount determined by the formula
	(3) The description of A in subsection 60.1(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 taxpayer 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 taxpayer 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 person described in paragraph (a) or (b) resides) incurred in the year or the preceding taxation year for the maintenance of a person, children in the person's custody or both the person and those children, where the person is
	(a) the taxpayer'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 a parent of a child of whom the taxpayer is a natural parent,
	and
	(4) The portion of subsection 60.1(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 56.1(2) shall apply to any amount paid or payable thereunder, deemed to be an amount payable by the taxpayer to that person and receivable by that person as an allowance on a periodic basis, and that person is deemed to have discretion as to the use of that amount.
	(5) Subsection 60.1(3) of the Act is replaced by the following:
Prior payments	(3) For the purposes of this section and section 60, where a written agreement or order of a competent tribunal made at any time in a taxation year provides that an amount paid 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 paid 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 paid, except that, where the agreement or order is made after April 1997 and varies a child support amount payable to the recipient from the last such amount paid to the recipient before May 1997, each varied amount of child support paid under the agreement or order is deemed to have been payable under an agreement or order the commencement day of which is the day on which the first payment of the varied amount is required to be made.
	(6) Section 60.1 of the Act is amended by adding the following after subsection (3):
Definitions	(4) The definitions in subsection 56.1(4) apply in this section and section 60.
	(7) Subsections (1) to (5) apply to amounts paid after 1996.
	(8) Subsection (6) applies after 1996.
	12. (1) Paragraph 63(1)(f) of the Act is replaced by the following:
	(f) the total of all amounts each of which is an amount that is deducted, in respect of the taxpayer's eligible children for the year, under this section in computing the income for the year of an individual (other than the taxpayer) to whom subsection (2) applies for the year.
	(2) Subparagraph 63(2)(b)(iii) of the Act is replaced by the following:
	(iii) a student in attendance at a designated educational institution (as defined in subsection 118.6(1)) or a secondary school and enrolled in a program of the institution or school of not less than 3 consecutive weeks duration that provides that each student in the program spend not less than 10 hours per week on courses or work in the program,
	(3) Section 63 of the Act is amended by adding the following after subsection (2.1):
Expenses while at school	(2.2) There may be deducted in computing a taxpayer's income for a taxation year such part of the amount determined under subsection (2.3) as the taxpayer claims, where
	(a) the taxpayer is, at any time in the year, a student in attendance at a designated educational institution (as defined in subsection 118.6(1)) or a secondary school and enrolled in a program of the institution or school of not less than 3 consecutive weeks duration that provides that each student in the program spend not less than 10 hours per week on courses or work in the program;
	(b) there is no supporting person of an eligible child of the taxpayer for the year or the income of the taxpayer for the year exceeds the income for the year of a supporting person of the child (on the assumption that both incomes are computed without reference to this section and paragraphs 60(v.1) and (w)); and
	(c) a prescribed form containing prescribed information is filed with the taxpayer's return of income (other than a return filed under subsection 70(2) or 104(23), paragraph 128(2)(e) or subsection 150(4)) for the year.
Amount deductible	(2.3) For the purpose of subsection (2.2), the amount determined in respect of a taxpayer for a taxation year is the least of
	(a) the amount by which the total of all amounts, each of which is an amount paid as or on account of child care expenses incurred for services rendered in the year in respect of an eligible child of the taxpayer, exceeds the amount that is deductible under subsection (1) in computing the taxpayer's income for the year,
	(b) 2/3 of the taxpayer's income for the year computed without reference to this section and paragraphs 60(v.1) and (w),
	(c) the amount determined by the formula
	(A + B) x C
	where
	A is the product obtained when $150 is multiplied by the number of eligible children of the taxpayer for the year each of whom is
	(i) under 7 years of age at the end of the year, or
	(ii) a person in respect of whom an amount may be deducted under section 118.3 in computing a taxpayer's tax payable under this Part for the year,
	B is the product obtained when $90 is multiplied by the number of the taxpayer's eligible children for the year (other than those referred to in the description of A), and
	C is
	(i) where there is a supporting person of an eligible child of the taxpayer for the year, the number of weeks, in the year, in which both the taxpayer and the supporting person were students described in paragraph (2.2)(a), and
	(ii) in any other case, the number of weeks, in the year, in which the taxpayer was a student described in paragraph (2.2)(a),
	(d) the amount by which the total calculated under subparagraph (1)(e)(ii) in respect of eligible children of the taxpayer for the year exceeds the amount that is deductible under subsection (1) in computing the taxpayer's income for the year, and
	(e) where there is a supporting person of an eligible child of the taxpayer for the year, the amount by which the amount calculated under paragraph (2)(b) for the year in respect of the taxpayer exceeds 2/3 of the taxpayer's earned income for the year.
	(4) Paragraph (a) of the definition ``child care expense'' in subsection 63(3) of the Act is amended by striking out the word ``or'' at the end of subparagraph (iii), by replacing the word ``and'' at the end of subparagraph (iv) with the word ``or'' and by adding the following after subparagraph (iv):
	(v) to attend a designated educational institution (as defined in subsection 118.6(1)) or a secondary school, where the taxpayer is enrolled in a program of the institution or school of not less than 3 consecutive weeks duration that provides that each student in the program spend not less than 10 hours per week on courses or work in the program, and
	(5) Paragraph (c) of the definition ``eligible child'' in subsection 63(3) of the Act is replaced by the following:
	(c) is under 16 years of age, or
	(6) The portion of the definition ``supporting person'' in subsection 63(3) of the Act before paragraph (a) is replaced by the following:
``supporting person'' « personne assumant les frais d'entretien »	``supporting person'' of an eligible child of a taxpayer for a taxation year means a person, other than the taxpayer, who is
	(7) Subsections (1) to (5) apply to the 1996 and subsequent taxation years.
	(8) Subsection (6) applies to the 1983 and subsequent taxation years.
	13. (1) Subsections 66(10) to (10.3) of the Act are repealed.
	(2) The portion of subsection 66(12.6) of the Act before paragraph (c) is replaced by the following:
Canadian exploration expenses to flow-through shareholder	(12.6) Where a person gave consideration under an agreement to a corporation for the issue of a flow-through share of the corporation and, in the period that begins on the day the agreement was made and ends 24 months after the end of the month that includes that day, the corporation incurred Canadian exploration expenses, the corporation may, after it complies with subsection (12.68) in respect of the share and before March of the first calendar year that begins after the period, renounce, effective on the day on which the renunciation is made or on an earlier day set out in the form prescribed for the purposes of subsection (12.7), to the person in respect of the share the amount, if any, by which the part of those expenses that was incurred on or before the effective date of the renunciation (which part is in this subsection referred to as the ``specified expenses'') exceeds the total of
	(a) the assistance that the corporation has received, is entitled to receive or can reasonably be expected to receive at any time, and that can reasonably be related to the specified expenses or to Canadian exploration activities to which the specified expenses relate (other than assistance that can reasonably be related to expenses referred to in paragraph (b) or (b.1)),
	(b) all specified expenses that are prescribed Canadian exploration and development overhead expenses of the corporation,
	(3) Subsection 66(12.6) of the Act is amended by adding the following after paragraph (b):
	(b.1) all specified expenses each of which is a cost of, or for the use of, seismic data
	(i) that had been acquired (otherwise than as a consequence of performing work that resulted in the creation of the data) by any other person before the cost was incurred,
	(ii) in respect of which a right to use had been acquired by any other person before the cost was incurred, or
	(iii) all or substantially all of which resulted from work performed more than one year before the cost was incurred, and
	(4) Paragraph 66(12.6)(d) of the Act is replaced by the following:
	(d) exceeding the amount, if any, by which the consideration for the share exceeds the total of other amounts renounced under this subsection or subsection (12.601) or (12.62) in respect of the share on or before the day on which the renunciation is made, or
	(5) The portion of subsection 66(12.601) of the Act before paragraph (b) is replaced by the following:
Flow-through share rules for first $1 million of Canadian development expenses	(12.601) Where
	(a) a person gave consideration under an agreement to a corporation for the issue of a flow-through share of the corporation,
	(a.1) the corporation's taxable capital amount at the time the consideration was given was not more than $15,000,000, and
	(6) The portion of subsection 66(12.601) of the Act after paragraph (b) and before paragraph (e) is replaced by the following:
	the corporation may, after it complies with subsection (12.68) in respect of the share and before March of the first calendar year that begins after that period, renounce, effective on the day on which the renunciation is made or on an earlier day set out in the form prescribed for the purposes of subsection (12.7), to the person in respect of the share the amount, if any, by which the part of those expenses that was incurred on or before the effective date of the renunciation (which part is in this subsection referred to as the ``specified expenses'') exceeds the total of
	(c) the assistance that the corporation has received, is entitled to receive, or can reasonably be expected to receive at any time, and that can reasonably be related to the specified expenses or Canadian development activities to which the specified expenses relate (other than assistance that can reasonably be related to expenses referred to in paragraph (d)),
	(d) all specified expenses that are prescribed Canadian exploration and development overhead expenses of the corporation, and
	(7) Section 66 of the Act is amended by adding the following after subsection 66(12.601):
Taxable capital amount	(12.6011) For the purpose of subsection (12.601), a particular corporation's taxable capital amount at any time is the total of
	(a) its taxable capital employed in Canada for its last taxation year that ended more than 30 days before that time, and
	(b) the total of all amounts each of which is the taxable capital employed in Canada of another corporation associated at that time with the particular corporation for the other corporation's last taxation year that ended more than 30 days before that time.
Taxable capital employed in Canada	(12.6012) For the purpose of determining a corporation's taxable capital amount at a particular time under subsection (12.6011) and for the purpose of subsection (12.6013), a particular corporation's taxable capital employed in Canada for a taxation year is the amount that would be its taxable capital employed in Canada for the year, determined in accordance with subsection 181.2(1) and without reference to the portion of its investment allowance (as determined under subsection 181.2(4)) that is attributable to shares of the capital stock of, dividends payable by, or indebtedness of, another corporation that
	(a) was not associated with the particular corporation at the particular time; and
	(b) was associated with the particular corporation at the end of the particular corporation's last taxation year that ended more than 30 days before that time.
Amalgama- tions and mergers	(12.6013) For the purpose of determining the taxable capital amount at a particular time under subsection (12.6011) of any corporation and for the purpose of this subsection, a particular corporation that was created as a consequence of an amalgamation or merger of other corporations (each of which is in this subsection referred to as a ``predecessor corporation''), and that does not have a taxation year that ended more than 30 days before the particular time, is deemed to have taxable capital employed in Canada for a taxation year that ended more than 30 days before the particular time equal to the total of all amounts each of which is the taxable capital employed in Canada of a predecessor corporation for its last taxation year that ended more than 30 days before the particular time.
	(8) Paragraph 66(12.602)(a) of the Act is replaced by the following:
	(a) the particular amount exceeds the amount, if any, by which the consideration for the share exceeds the total of other amounts renounced in respect of the share under subsection (12.6), (12.601) or (12.62) on or before the day on which the renunciation is made;
	(9) The portion of paragraph 66(12.602)(c) of the Act after subparagraph (ii) is replaced by the following:
	exceeds $1,000,000.
	(10) The portion of subsection 66(12.61) of the Act before paragraph (a) is replaced by the following:
Effect of renunciation	(12.61) Subject to subsections (12.69) to (12.702), where under subsection (12.6) or (12.601) a corporation renounces an amount to a person,
	(11) The portion of subsection 66(12.62) of the Act before paragraph (c) is replaced by the following: