(10) Paragraphs 70(5.2)(a.1) and (c.1) of the Act, as enacted by subsections (2) and (4), respectively, apply to acquisitions that occur after 1992.
	(11) Subsection (5) applies to dispositions that occur after October 1, 1996.
	(12) Subsections (6) and (7) apply to transfers and distributions from trusts that occur after 1999.
	(13) Where a particular transfer or distribution to a trust referred to in subsection 70(9.1) or (9.3) of the Act, as enacted by subsections (6) and (7), respectively, occurred before 2001, in applying that subsection 70(9.1) or (9.3) to a transfer or distribution from the trust that occurs after 1997, that subsection shall be read without reference to the words ``or common-law partner'' and to the Modernization of Benefits and Obligations Act, unless
	(a) the particular transfer or distribution occurred after 1997;
	(b) the death referred to in that subsection occurs after 1997; and
	(c) either
	(i) at the time of the particular transfer or distribution referred to in paragraph (a), the taxpayer was a spouse of the individual whose death is referred to in paragraph (b), or
	(ii) because of an election under section 144 of the Modernization of Benefits and Obligations Act, sections 130 to 142 of that Act applied, at the time of the particular transfer or distribution referred to in paragraph (a), to the taxpayer and the individual whose death is referred to in paragraph (b).
	53. (1) Subsections 73(1) and (1.1) of the Act are replaced by the following:
Inter vivos transfers by individuals	73. (1) For the purposes of this Part, where at any time any particular capital property of an individual (other than a trust) has been transferred in circumstances to which subsection (1.01) applies and both the individual and the transferee are resident in Canada at that time, unless the individual elects in the individual's return of income under this Part for the taxation year in which the property was transferred that the provisions of this subsection not apply, the particular property is deemed
	(a ) to have been disposed of at that time by the individual for proceeds equal to,
	(i ) where the particular property is depreciable property of a prescribed class, that proportion of the undepreciated capital cost to the individual immediately before that time of all property of that class that the fair market value immediately before that time of the particular property is of the fair market value immediately before that time of all of that property of that class, and
	(ii ) in any other case, the adjusted cost base to the individual of the particular property immediately before that time; and
	(b) to have been acquired at that time by the transferee for an amount equal to those proceeds.
Qualifying transfers	(1.01) Subject to subsection (1.02), property is transferred by an individual in circumstances to which this subsection applies where it is transferred to
	(a) the individual's spouse or common-law partner;
	(b) a former spouse or common-law partner of the individual in settlement of rights arising out of their marriage or common-law partnership; or
	(c) a trust created by the individual under which
	(i) the individual's spouse or common-law partner is entitled to receive all of the income of the trust that arises before the spouse's or common-law partner's death and no person except the spouse or common-law partner may, before the spouse's or common-law partner's death, receive or otherwise obtain the use of any of the income or capital of the trust,
	(ii) the individual is entitled to receive all of the income of the trust that arises before the individual's death and no person except the individual may, before the individual's death, receive or otherwise obtain the use of any of the income or capital of the trust, or
	(iii) either
	(A) the individual or the individual's spouse is, in combination with the other, entitled to receive all of the income of the trust that arises before the later of the death of the individual and the death of the spouse and no other person may, before the later of those deaths, receive or otherwise obtain the use of any of the income or capital of the trust, or
	(B) the individual or the individual's common-law partner is, in combination with the other, entitled to receive all of the income of the trust that arises before the later of the death of the individual and the death of the common-law partner and no other person may, before the later of those deaths, receive or otherwise obtain the use of any of the income or capital of the trust.
Exception for transfers	(1.02) Subsection (1.01) applies to a transfer of property by an individual to a trust the terms of which satisfy the conditions in subparagraph (1.01)(c)(ii) or (iii) only where
	(a) the trust was created after 1999;
	(b) either
	(i) the individual had attained 65 years of age at the time the trust was created, or
	(ii) the transfer does not result in a change in beneficial ownership of the property and there is immediately after the transfer no absolute or contingent right of a person (other than the individual) or partnership as a beneficiary (determined with reference to subsection 104(1.1)) under the trust; and
	(c) in the case of a trust the terms of which satisfy the conditions in subparagraph (1.01)(c)(ii), the trust does not make an election under subparagraph 104(4)(a)(ii.1).
Interpreta- tion	(1.1) For greater certainty, a property is, for the purposes of subsections (1) and (1.01), deemed to be property of the individual referred to in subsection (1) that has been transferred to a particular transferee where,
	(a ) under the laws of a province or because of a decree, order or judgment of a competent tribunal made in accordance with those laws, the property
	(i) is acquired or is deemed to have been acquired by the particular transferee ,
	(ii ) is deemed or declared to be property of , or is awarded to, the particular transferee , or
	(iii ) has vested in the particular transferee ; and
	(b) the property was or would, but for those laws , have been a capital property of the individual referred to in subsection (1).
	(2) Subsection (1) applies to transfers that occur after 1999 except that,
	(a) in respect of transfers that occur in 2000 or 2001, for the purpose of subsection 73(1) of the Act, as enacted by subsection (1), the residence of a transferee trust shall be determined without reference to section 94 of the Act, as it reads before 2002;
	(b) in respect of transfers that occur in 2000 and subject to paragraph (c),
	(i) subsection 73(1.01) of the Act, as enacted by subsection (1), shall be read without reference to the words ``or common-law partner'', ``or common-law partner's'' and ``or common-law partnership'', and
	(ii) subparagraph 73(1.01)(c)(iii) of the Act, as enacted by subsection (1), shall be read as follows:
	(iii) the individual or the individual's spouse is, in combination with the other, entitled to receive all of the income of the trust that arises before the later of the death of the individual and the death of the spouse and no other person may, before the later of those deaths, receive or otherwise obtain the use of any of the income or capital of the trust.
	(c) paragraph (b) does not apply to a transfer at any time by an individual to or for the benefit of another individual where, because of an election under section 144 of the Modernization of Benefits and Obligations Act, sections 130 to 142 of that Act applied at that time to those individuals; and
	(d) in respect of transfers that occur before March 16, 2001, subparagraph 73(1.02)(b)(ii) of the Act, as enacted by subsection (1), shall be read as follows:
	(ii) no person (other than the individual) or partnership has any absolute or contingent right as a beneficiary under the trust (determined with reference to subsection 104(1.1)); and
	54. (1) Section 74.2 of the Act is amended by adding the following after subsection (2):
Election for subsection (1) to apply	(3) Subsection (1) does not apply to a disposition at any particular time (in this subsection referred to as the ``emigration disposition'') under paragraph 128.1(4)(b), by a taxpayer who is a recipient referred to in subsection (1), unless the recipient and the individual referred to in that subsection, in their returns of income for the taxation year that includes the first time, after the particular time, at which the recipient disposes of the property, jointly elect that subsection (1) apply to the emigration disposition.
Application of subsection (3)	(4) For the purpose of applying subsection (3) and notwithstanding subsections 152(4) to (5), any assessment of tax payable under this Act by the recipient or the individual referred to in subsection (1) shall be made that is necessary to take an election under subsection (3) into account except that no such assessment shall affect the computation of
	(a) interest payable under this Act to or by a taxpayer in respect of any period that is before the taxpayer's filing-due date for the taxation year that includes the first time, after the particular time referred to in subsection (3), at which the recipient disposes of the property referred to in that subsection; or
	(b) any penalty payable under this Act.
	(2) Subsection (1) applies after October 1, 1996.
	55. (1) The portion of subsection 75(2) of the Act after paragraph (a) is replaced by the following:
	(b) that, during the existence of the person, the property shall not be disposed of except with the person's consent or in accordance with the person's direction,
	any income or loss from the property or from property substituted for the property , and any taxable capital gain or allowable capital loss from the disposition of the property or of property substituted for the property , shall, during the existence of the person while the person is resident in Canada, be deemed to be income or a loss, as the case may be, or a taxable capital gain or allowable capital loss, as the case may be, of the person.
	(2) Paragraphs 75(3)(a) and (b) of the Act are replaced by the following:
	(a) by a trust governed by a deferred profit sharing plan, an employee benefit plan, an employees profit sharing plan, a registered education savings plan, a registered pension plan, a registered retirement income fund, a registered retirement savings plan, a registered supplementary unemployment benefit plan or a retirement compensation arrangement ;
	(b) by an employee trust, a related segregated fund trust (within the meaning assigned by paragraph 138.1(1)(a)), a trust described in paragraph (a.1) of the definition ``trust'' in subsection 108(1) , or a trust described in paragraph 149(1)(y);
	(3) Subsection (1) applies to taxation years that begin after 2000.
	(4) Paragraph 75(3)(a) of the Act, as enacted by subsection (2), applies to taxation years that end after October 8, 1986 and, notwithstanding subsections 152(4) to (5) of the Act, the Minister of National Revenue shall make any assessments, reassessments and additional assessments of tax, interest and penalties that are necessary to give effect to the words ``retirement compensation arrangement'' in that paragraph.
	(5) Paragraph 75(3)(b) of the Act, as enacted by subsection (2), applies to the 1999 and subsequent taxation years.
	56. (1) The Act is amended by adding the following after section 76:
Non-resident moving debt from Canadian business	76.1 (1) If at any time a debt obligation of a non-resident taxpayer that is denominated in a foreign currency ceases to be an obligation of the taxpayer in respect of a business or part of a business carried on by the taxpayer in Canada immediately before that time (other than an obligation in respect of which the taxpayer ceased to be indebted at that time), for the purpose of determining the amount of any income, loss, capital gain or capital loss due to the fluctuation in the value of the foreign currency relative to Canadian currency, the taxpayer is deemed to have settled the debt obligation immediately before that time at the amount outstanding on account of its principal amount.
Non-resident assuming debt	(2) If at any time a debt obligation of a non-resident taxpayer that is denominated in a foreign currency becomes an obligation of the taxpayer in respect of a business or part of a business that the taxpayer carries on in Canada after that time (other than an obligation in respect of which the taxpayer became indebted at that time), the amount of any income, loss, capital gain or capital loss in respect of the obligation due to the fluctuation in the value of the foreign currency relative to Canadian currency shall be determined based on the amount of the obligation in Canadian currency at that time.
	(2) Subsection (1) applies after June 27, 1999 in respect of an authorized foreign bank, and after August 8, 2000 in any other case.
	57. (1) Subsection 79.1(2) of the Act is replaced by the following:
Seizure of property	(2) Subject to subsection (2.1) and for the purpose of this section, a property is seized at any time by a person in respect of a debt where
	(a) the beneficial ownership of the property is acquired or reacquired at that time by the person; and
	(b) the acquisition or reacquisition of the property is in consequence of another person's failure to pay to the person all or part of the specified amount of the debt.
Exception	(2.1) For the purpose of this section, foreign resource property is deemed not to be seized at any time from
	(a) an individual or a corporation, if the individual or corporation is non-resident at that time; or
	(b) a partnership (other than a partnership each member of which is resident in Canada at that time).
	(2) Subsection (1) applies in respect of property acquired or reacquired after February 27, 2000.
	58. (1) The portion of the definition ``successor pool'' in subsection 80(1) of the Act before paragraph (f) is replaced by the following:
``successor pool'' « compte de société remplaçante »	``successor pool'' at any time for a commercial obligation and in respect of an amount determined in relation to a debtor means the portion of that amount that would be deductible under subsection 66.7(2), (2.3) , (3), (4) or (5), as the case may be, in computing the debtor's income for the taxation year that includes that time, if
	(a) the debtor had sufficient incomes from all sources,
	(b) subsection (8) did not apply to reduce the amount so determined at that time,
	(c) the year ended immediately after that time, and
	(d) paragraphs 66.7(2.3)(a) , (4)(a) and (5)(a) were read without reference to the expressions ``30% of' ', ``30% of'' and ``10% of'', respectively,
	except that the successor pool at that time for the obligation is deemed to be nil unless
	(e) the obligation was issued by the debtor before, and not in contemplation of, the event described in paragraph (8)(a) that gives rise to the deductibility under subsection 66.7(2), (2.3) , (3), (4) or (5), as the case may be, of all or part of that amount in computing the debtor's income, or
	(2) Paragraph 80(2)(d) of the Act is replaced by the following:
	(d) the applicable fraction of the unapplied portion of a forgiven amount at any time in respect of an obligation issued by the debtor is in respect of a loss for any other taxation year, the fraction required to be used under section 38 for that year;
	(3) Paragraph 80(8)(a) of the Act is replaced by the following:
	(a) where the debtor is a corporation resident in Canada throughout that year, each particular amount that would be determined in respect of the debtor under paragraph 66.7(2)(a), (2.3)(a) , (3)(a), (4)(a) or (5)(a) if paragraphs 66.7(2.3)(a) , (4)(a) and (5)(a) were read without reference to the expressions ``30% of' ', ``30% of'' and ``10% of'', respectively, as a consequence of the acquisition of control of the debtor by a person or group of persons, the debtor ceasing to be exempt from tax under this Part on its taxable income or the acquisition of properties by the debtor by way of an amalgamation or merger, where the amount so applied does not exceed the successor pool immediately after that time for the obligation and in respect of the particular amount;
	(4) Subsection 80(8) of the Act is amended by striking out the word ``and'' at the end of paragraph (d), by adding the word ``and'' at the end of paragraph (e) and by adding the following after paragraph (e):
	(f) the cumulative foreign resource expense (within the meaning assigned by subsection 66.21(1)) of the debtor in respect of a country.
	(5) Clause 80(12)(a)(ii)(B) of the Act is amended by replacing the reference to the expression ``4/3 of'' with a reference to the word ``twice''.