BILL C-28 - As passed by the House of Commons

	PART II
R.S., c. 2 (5th Supp.); 1994, cc. 7, 21; 1995, cc. 3, 21; 1997, c. 25	INCOME TAX APPLICATION RULES
	*248. (1) The portion of paragraph 20(1)(c) of the Income Tax Application Rules* before subparagraph (ii) is replaced by the following:**
	(c) where the disposition occurred because of an election under subsection 110.6(19) of the amended Act,
	(i) for the purposes of that Act (other than paragraphs 8(1)(j) and (p) and sections 13 and 20 of that Act), the taxpayer is deemed to have reacquired the property at a capital cost equal to
	(A) where the amount designated in respect of the property in the election did not exceed 110% of the fair market value of the property at the end of February 22, 1994, the taxpayer's proceeds of disposition determined under paragraph (a) in respect of the disposition of the property that immediately preceded the reacquisition minus the amount, if any, by which the amount designated in respect of the property in the election exceeded that fair market value, and
	(B) in any other case, the amount otherwise determined under subsection 110.6(19) of that Act to be the cost to the taxpayer of the property immediately after the reacquisition referred to in that subsection minus the amount by which the fair market value of the property on valuation day exceeded the capital cost of the property at the time it was last acquired before 1972, and
	(2) Subsection (1) applies to the 1994 and subsequent taxation years.
	249. (1) Clause 26(5)(c)(ii)(A) of the Rules is replaced by the following:
	(A) a capital loss or an amount that would, but for paragraph 40(2)(e) and subsection 85(4) of the amended Act (as that Act read in its application to property disposed of on or before April 26, 1995) and paragraphs 40(2)(e.1) and (e.2) and subsection 40(3.3) of the amended Act, be a capital loss from the disposition to a corporation after 1971 of the property by a person who owned the property before it became vested in the subsequent owner, or
	(2) The portion of subsection 26(25) of the Rules before paragraph (a) is replaced by the following:
Bond conversion	(25) Where, after May 6, 1974, there has been an exchange to which section 51.1 of the amended Act applies on which a taxpayer has acquired a bond of a debtor (in this subsection referred to as the ``new bond'') in exchange for another bond of the same debtor (in this subsection referred to as the ``old bond'') owned by the taxpayer on December 31, 1971 and thereafter without interruption until immediately before the exchange, notwithstanding any other provision of this Act or of the amended Act, for the purposes of subsection 88(2.1) of the amended Act and of determining the cost to the taxpayer and the adjusted cost base to the taxpayer of the new bond,
	(3) Section 26 of the Rules is amended by adding the following after subsection (29):
Additions to taxable Canadian property	(30) Subsections (1.1) to (29) do not apply to a disposition by a non-resident person of a taxable Canadian property that would not be a taxable Canadian property immediately before the disposition if section 115 of the amended Act were read as it applied to dispositions that occurred on April 26, 1995.
	(4) Subsections (1) and (3) apply to dispositions that occur after April 26, 1995.
	(5) Subsection (2) applies to exchanges that occur after October 1994.
	PART III
R.S., c. B-3; R.S., cc. 27, 31 (1st Supp.), cc. 3, 27 (2nd Supp.); 1990, c. 17; 1991, c. 46; 1992, cc. 1, 27; 1993, cc. 28, 34; 1994, c. 26; 1995, c. 1; 1996, cc. 6, 23; 1997, c. 12	BANKRUPTCY AND INSOLVENCY ACT
1992, c. 27, s. 33; 1996, c. 23, s. 168	*250. (1) Subsection 67(3) of the Bankruptcy and Insolvency Act* is replaced by the following:**
Exceptions	(3) Subsection (2) does not apply in respect of amounts deemed to be held in trust under subsection 227(4) or (4.1) of the Income Tax Act, subsection 23(3) or (4) of the Canada Pension Plan or subsection 86(2) or (2.1) of the Employment Insurance Act (each of which is in this subsection referred to as a ``federal provision'') nor in respect of amounts deemed to be held in trust under any law of a province that creates a deemed trust the sole purpose of which is to ensure remittance to Her Majesty in right of the province of amounts deducted or withheld under a law of the province where
	(a) that law of the province imposes a tax similar in nature to the tax imposed under the Income Tax Act and the amounts deducted or withheld under that law of the province are of the same nature as the amounts referred to in subsection 227(4) or (4.1) of the Income Tax Act, or
	(b) the province is a ``province providing a comprehensive pension plan'' as defined in subsection 3(1) of the Canada Pension Plan, that law of the province establishes a ``provincial pension plan'' as defined in that subsection and the amounts deducted or withheld under that law of the province are of the same nature as amounts referred to in subsection 23(3) or (4) of the Canada Pension Plan,
	and for the purpose of this subsection, any provision of a law of a province that creates a deemed trust is, notwithstanding any Act of Canada or of a province or any other law, deemed to have the same effect and scope against any creditor, however secured, as the corresponding federal provision.
	(2) Subsection (1) is deemed to have come into force on June 15, 1994 except that, in the application after June 14, 1994 and before June 30, 1996 of subsection 67(3) of the Act, as enacted by subsection (1), the reference to ``subsections 86(2) or (2.1) of the Employment Insurance Act'' shall be read as a reference to ``subsections 57(2) or (3) of the Unemployment Insurance Act''.
	PART IV
R.S., c. C-8; R.S., cc. 6, 41 (1st Supp.), cc. 5, 13, 27, 30 (2nd Supp.), cc. 18, 38 (3rd Supp.), cc. 1, 46, 51 (4th Supp.); 1990, c. 8; 1991, cc. 14, 44, 49; 1992, cc. 1, 2, 27, 48; 1993, cc. 24, 27, 28; 1994, cc. 13, 21; 1995, c. 33; 1996, cc. 11, 16, 23	CANADA PENSION PLAN
	*251. (1) Section 5 of the Canada Pension Plan* is renumbered as subsection 5(1) and is amended by adding the following:**
Delegation	(2) The Minister may authorize an officer or a class of officers to exercise powers or perform duties of the Minister under this Part.
	(2) Any power or duty of the Minister of National Revenue delegated to an officer or a class of officers by a regulation made under subsection 40(2) of the Act before the day on which this Act is assented to continues to be delegated to that officer or that class of officers until an authorization by the Minister made under subsection 5(2) of the Act, as enacted by subsection (1), changes the delegation of that power or duty.
1994, c. 21, s. 123	252. (1) Subsection 23(3) of the Act is replaced by the following:
Where amount deducted not remitted	(3) Where an employer has deducted an amount from the remuneration of an employee as or on account of any contribution required to be made by the employee but has not remitted the amount to the Receiver General, the employer is deemed, notwithstanding any security interest (as defined in subsection 224(1.3) of the Income Tax Act) in the amount so deducted, to hold the amount separate and apart from the property of the employer and from property held by any secured creditor (as defined in subsection 224(1.3) of the Income Tax Act) of that employer that but for the security interest would be property of the employer, in trust for Her Majesty and for payment to Her Majesty in the manner and at the time provided under this Act.
Extension of trust	(4) Notwithstanding the Bankruptcy and Insolvency Act (except sections 81.1 and 81.2 of that Act), any other enactment of Canada, any enactment of a province or any other law, where at any time an amount deemed by subsection (3) to be held by an employer in trust for Her Majesty is not paid to Her Majesty in the manner and at the time provided under this Act, property of the employer and property held by any secured creditor (as defined in subsection 224(1.3) of the Income Tax Act) of that employer that but for a security interest (as defined in subsection 224(1.3) of the Income Tax Act) would be property of the employer, equal in value to the amount so deemed to be held in trust is deemed
	(a) to be held, from the time the amount was deducted by the employer, separate and apart from the property of the employer, in trust for Her Majesty whether or not the property is subject to such a security interest, and
	(b) to form no part of the estate or property of the employer from the time the amount was so deducted, whether or not the property has in fact been kept separate and apart from the estate or property of the employer and whether or not the property is subject to such a security interest
	and is property beneficially owned by Her Majesty notwithstanding any security interest in such property or in the proceeds thereof, and the proceeds of such property shall be paid to the Receiver General in priority to all such security interests.
Meaning of ``security interest''	(4.1) For the purposes of subsections (3) and (4), a security interest does not include a prescribed security interest.
	(2) Subsection (1) is deemed to have come into force on June 15, 1994.
	253. Section 24 of the Act is amended by adding the following after subsection (2):
Electronic records	(2.1) Every employer required by this section to keep records who does so electronically shall retain them in an electronically readable format for the retention period referred to in subsection (2).
Exemption	(2.2) The Minister may, on such terms and conditions as are acceptable to the Minister, exempt an employer or a class of employers from the requirement in subsection (2.1).
R.S., c. 5 (2nd Supp.), s. 2	254. (1) Subsection 25(7) of the Act is amended by adding the word ``and'' at the end of paragraph (a) and by repealing paragraphs (c) and (d).
R.S., c. 5 (2nd Supp), s. 2	(2) Subsection 25(10) of the Act is replaced by the following:
Powers on review	(10) On hearing an application under subsection (9), a judge may cancel the authorization previously granted if the judge is not then satisfied that the conditions in paragraphs (7)(a) and (b) have been met and the judge may confirm or vary the authorization if satisfied that those conditions have been met.
R.S., c. 5 (2nd Supp.), s. 2; 1994, c. 13, par. 8(1)(a)	(3) Subsection 25(12) of the Act is replaced by the following:
Copies as evidence	(12) Where any document is inspected, audited, examined or provided under this section, the person by whom it is inspected, audited or examined or to whom it is provided or any officer of the Department of National Revenue may make, or cause to be made, one or more copies thereof and, in the case of an electronic document, make or cause to be made a print-out of the electronic document, and any document purporting to be certified by the Minister or an authorized person to be a copy of the document, or to be a print-out of an electronic document, made pursuant to this subsection is evidence of the nature and content of the original document and has the same probative force as the original document would have if it were proven in the ordinary way.
	(4) Subsection (3) applies to copies and print-outs made after this Act is assented to.
R.S., c. 51 (4th Supp.), s. 9	255. (1) Subsection 28(1) of the Act is replaced by the following:
Appeal to Tax Court of Canada	28. (1) A person affected by a decision on an appeal to the Minister under section 27 or 27.1, or the person's representative, may, within 90 days after the decision is communicated to the person, or within any longer time that the Tax Court of Canada on application made to it within 90 days after the expiration of those 90 days allows, appeal from the decision to that Court in accordance with the Tax Court of Canada Act and the applicable rules of court made thereunder.
	(2) Section 28 of the Act is amended by adding the following after subsection (1.1):
Extension of time to appeal	(1.2) Section 167, except paragraph 167(5)(a), of the Income Tax Act applies, with such modifications as the circumstances require, in respect of applications made under subsection (1).
	(3) Subsection (1) applies to appeals instituted after the fourth month after the month in which this Act is assented to.
	256. Subsection 40(2) of the Act is repealed.
	PART V
1992, c. 48, Sch.; 1995, c. 33; 1996, c. 11	CHILDREN'S SPECIAL ALLOWANCES ACT
1996, c. 11, par. 95(d)	*257. (1) The definition ``Minister'' in section 2 of the Children's Special Allowances Act* is replaced by the following:**
``Minister'' « ministre »	``Minister'' means the Minister of National Revenue;
	(2) Subsection (1) applies after August 27, 1995.
1996, c. 11, paras. 97(1)(c) and (2)(a) and 101(b)	258. (1) Subsection 10(2) of the Act is replaced by the following:
Release of information	(2) Any information obtained by or on behalf of the Minister in the course of the administration or enforcement of this Act or the regulations or the carrying out of an agreement entered into under section 11 may be communicated to any person where it can reasonably be regarded as necessary for the purposes of the administration or enforcement of this Act or the Income Tax Act.
	(2) Subsection (1) applies after August 27, 1995.
1996, c. 11, par. 97(1)(c)	259. (1) Section 11 of the Act is replaced by the following:
Agreements with provinces for exchange of information	11. The Minister may enter into an agreement with the government of any province for the purpose of obtaining information in connection with the administration or enforcement of this Act or the regulations and of furnishing to that government, under prescribed conditions, any information obtained by or on behalf of the Minister in the course of the administration or enforcement of this Act or the regulations, if the Minister is satisfied that the information to be furnished to that government under the agreement is to be used for the purpose of the administration of a social program, income assistance program or health insurance program in the province.
	(2) Subsection (1) applies after August 27, 1995.