(iii) subsection (6) does not apply to an annuity purchased for the beneficiary;
	(b) where a beneficiary under a profit sharing plan attained 69 years of age in 1996, in applying
	(i) subparagraph 147(2)(k)(iii) and clause 147(2)(k)(vi)(A) of the Act, as enacted by subsection (3), in respect of the beneficiary, and
	(ii) subsection 147(10.6) of the Act, as enacted by subsection (6), to an annuity purchased for the beneficiary,
	the references in those provisions to ``69 years of age'' shall be read as ``70 years of age''; and
	(c) subsection (6) does not apply to an annuity purchased before March 6, 1996 for a beneficiary under a deferred profit sharing plan where, under the terms and conditions of the annuity contract as they read immediately before that day,
	(i) the day on which annuity payments are to begin under the contract is fixed and determined and is after the year in which the beneficiary attains
	(A) 69 years of age, where the beneficiary had not attained that age before 1997, or
	(B) 70 years of age, where the beneficiary attained 69 years of age in 1996, and
	(ii) the amount and timing of each annuity payment are fixed and determined.
	(10) Subsection (5) applies to the 1992 and subsequent taxation years.
	44. (1) The portion of the definition ``money purchase limit'' in subsection 147.1(1) of the Act after paragraph (f) is replaced by the following:
	(g) for years after 1995 and before 2003, $13,500,
	(h) for 2003, $14,500,
	(i) for 2004, $15,500, and
	(j) for each year after 2004, the greater of
	(i) the product of
	(A) $15,500, and
	(B) the quotient obtained when the average wage for the year is divided by the average wage for 2004,
	rounded to the nearest multiple of $10, or, if that product is equidistant from 2 such consecutive multiples, to the higher thereof, and
	(ii) the money purchase limit for the preceding year;
	(2) Subsection (1) applies after 1996.
	45. (1) Section 147.3 of the Act is amended by adding the following after subsection (14):
Annuity contract commencing after age 69	(15) Where, under circumstances in which paragraph 254(a) applies, an individual receives before 1997 an interest in an annuity contract in full or partial satisfaction of the individual's entitlement to benefits under a registered pension plan, and payment of the annuity has not begun by the end of the particular year in which the individual attains 69 years of age,
	(a) that interest is deemed not to exist after the particular year;
	(b) the individual is deemed to have received immediately after the particular year the payment of a single amount from the plan equal to the fair market value of the interest at the end of the particular year;
	(c) the individual is deemed to have acquired immediately after the particular year an interest in the annuity contract as a separate and newly issued annuity contract at a cost equal to the amount referred to in paragraph (b); and
	(d) the issue and acquisition of the newly issued annuity contract are deemed not to be pursuant to or under a registered pension plan.
	(2) Subsection (1) applies after 1996, except that
	(a) it does not apply to an individual who attained 70 years of age before 1997;
	(b) in applying subsection 147.3(15) of the Act, as enacted by subsection (1), to an individual who attained 69 years of age in 1996, the reference in that provision to ``69 years of age'' shall be read as a reference to ``70 years of age''; and
	(c) subsection (1) does not apply to an annuity contract where an individual received an interest in the contract before March 6, 1996 and, under the terms and conditions of the contract as they read immediately before that day,
	(i) the day on which the annuity payments are to begin under the contract is fixed and determined and is after the year in which the individual attains
	(A) 69 years of age, where the individual had not attained that age before 1997, or
	(B) 70 years of age, where the individual attained 69 years of age in 1996, and
	(ii) the amount and timing of each annuity payment are fixed and determined.
	46. The definition ``relevant authority'' in subsection 148(9) of the Act is repealed.
	47. (1) Paragraph 149(1)(t) of the Act is replaced by the following:
Farmers' and fishermen's insurer	(t) an insurer that, throughout the period, is not engaged in any business other than insurance if, in the opinion of the Minister, on the advice of the Superintendent of Financial Institutions or of the superintendent of insurance of the province under the laws of which the insurer is incorporated, not less than 20% of the total of the gross premium income (net of reinsurance ceded) earned in the period by the insurer and, where the insurer is not a prescribed insurer, by all other insurers that
	(i) are specified shareholders of the insurer,
	(ii) are related to the insurer, or
	(iii) where the insurer is a mutual corporation, are part of a group that controls, directly or indirectly in any manner whatever, or are controlled, directly or indirectly in any manner whatever by, the insurer,
	is in respect of insurance of property used in farming or fishing or residences of farmers or fishermen;
	(2) Subsection 149(4.1) of the Act is replaced by the following:
Income exempt under 149(1)(t)	(4.1) Subject to subsection (4.2), subsection (1) applies to an insurer described in paragraph (1)(t) only in respect of the part of its taxable income for a taxation year determined by the formula
	(A x B x C) / D
	where
	A is its taxable income for the year;
	B is
	(a) l/2, where less than 25% of the total of the gross premium income (net of reinsurance ceded) earned in the year by it and, where it is not a prescribed insurer for the purpose of paragraph (1)(t), by all other insurers that
	(i) are specified shareholders of the insurer,
	(ii) are related to the insurer, or
	(iii) where the insurer is a mutual corporation, are part of a group that controls, directly or indirectly in any manner whatever, or are controlled, directly or indirectly in any manner whatever by, the insurer,
	is in respect of insurance of property used in farming or fishing or residences of farmers or fishermen; and
	(b) 1 in any other case;
	C is the part of the gross premium income (net of reinsurance ceded) earned by it in the year that, in the opinion of the Minister, on the advice of the Superintendent of Financial Institutions or of the superintendent of insurance of the province under the laws of which it is incorporated, is in respect of insurance of property used in farming or fishing or residences of farmers or fishermen; and
	D is the gross premium income (net of reinsurance ceded) earned by it in the year.
	(3) The portion of subsection 149(4.2) of the Act after paragraph (c) is replaced by the following:
	is in respect of insurance of property used in farming or fishing or residences of farmers or fishermen.
	(4) Subsections (1) to (3) apply to the 1996 and subsequent taxation years.
	48. (1) The portion of the definition ``net tax owing'' in subsection 156.1(1) of the Act after the description of E is repealed.
	(2) Section 156.1 of the Act is amended by adding the following after subsection (1):
Values of A and B in ``net tax owing''	(1.1) For the purposes of determining the values of A and B in the definition ``net tax owing'' in subsection (1), income taxes payable by an individual for a taxation year are determined
	(a) before taking into consideration the specified future tax consequences for the year; and
	(b) after deducting all tax credits to which the individual is entitled for the year relating to those taxes (other than tax credits that become payable to the individual after the individual's balance-due day for the year, prescribed tax credits and the amount deemed to have been paid because of the application of subsection 120(2)).
Value of D in ``net tax owing''	(1.2) For the purpose of determining the value of D in the definition ``net tax owing'' in subsection (1), the amount deemed by subsection 120(2) to have been paid on account of an individual's tax under this Part for a taxation year is determined before taking into consideration the specified future tax consequences for the year.
	(3) Subsections (1) and (2) apply to amounts that become payable after 1995.
	49. (1) Subparagraph 157(1)(b)(i) of the Act is amended by striking out the word ``and'' at the end of clause (A) and by replacing clause (B) with the following:
	(B) the corporation is, throughout the year, a Canadian-controlled private corporation,
	(C) a particular calendar year immediately preceded the calendar year in which the year ends, and
	(D) either
	(I) the corporation is not associated with another corporation in the taxation year and its taxable income for its immediately preceding taxation year (determined before taking into consideration the specified future tax consequences for that preceding year) does not exceed its business limit for that preceding year, or
	(II) where the corporation is associated with another corporation in the taxation year, the total of all amounts each of which is the taxable income of the corporation or such an associated corporation for its last taxation year that ended in the particular calendar year (determined before taking into consideration the specified future tax consequences for that last year) does not exceed the total of all amounts each of which is the business limit of the corporation or such an associated corporation for that last year, or
	(2) Paragraphs 157(2)(c) and (d) of the Act are replaced by the following:
	(c) its taxable income (determined before taking into consideration the specified future tax consequences for the year or that preceding year, as the case may be) was not more than $10,000, and
	(d) no tax was payable by it under any of Parts I.3, VI and VI.1 (determined before taking into consideration the specified future tax consequences for the year or that preceding year, as the case may be),
	(3) Paragraph 157(2.1)(a) of the Act is replaced by the following:
	(a) the total of the taxes payable under this Part and Parts I.3, VI and VI.1 by a corporation for a taxation year (determined before taking into consideration the specified future tax consequences for the year), or
	(4) Subsections (1) to (3) apply to amounts that become payable after 1995, except that, for taxation years that end before 1998, subclause 157(1)(b)(i)(D)(II) of the Act, as enacted by subsection (1), shall be read as follows:
	(II) where the corporation is associated with another corporation in the year,
	1. the total of the taxable income of the corporation for its immediately preceding taxation year (determined before taking into consideration the specified future tax consequences for that preceding year) and the total of the taxable incomes of all such associated corporations for their taxation years that ended in the particular calendar year (determined before taking into consideration the specified future tax consequences for those years)
	does not exceed
	2. the total of the business limit of the corporation for its immediately preceding taxation year and the total of the business limits of all such associated corporations for their taxation years that ended in the particular calendar year, or
	50. (1) The portion of subsection 161(1) of the Act before paragraph (a) is replaced by the following:
General	161. (1) Where at any time after a taxpayer's balance-due day for a taxation year
	(2) Subsection 161(2.2) of the Act is replaced by the following:
Contra interest	(2.2) Notwithstanding subsections (1) and (2), the total amount of interest payable by a taxpayer (other than a testamentary trust) under those subsections, for the period that begins on the first day of the taxation year for which a part or instalment of tax is payable and ends on the taxpayer's balance-due day for the year, in respect of the taxpayer's tax or instalments of tax payable for the year shall not exceed the amount, if any, by which
	(a) the total amount of interest that would be payable for the period by the taxpayer under subsections (1) and (2) in respect of the taxpayer's tax and instalments of tax payable for the year if no amount were paid on account of the tax or instalments
	exceeds
	(b) the amount of interest that would be payable under subsection 164(3) to the taxpayer in respect of the period on the amount that would be refunded to the taxpayer in respect of the year or applied to another liability if
	(i) no tax were payable by the taxpayer for the year,