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(4) Subsections (1) and (2) apply to the
1999 and subsequent taxation years.
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(5) Subsection (3) applies to the 2001 and
subsequent taxation years.
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100. (1) Paragraph (c) of the description
of B in section 118.7 of the Act is replaced by
the following:
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(i) the total of all amounts each of which
is an amount payable by the individual in
respect of self-employed earnings for the
year as a contribution under the Canada
Pension Plan or under a provincial
pension plan within the meaning
assigned by section 3 of that Act (not
exceeding the maximum amount of such
contributions payable by the individual
for the year under the plan)
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(ii) the amount deductible under
paragraph 60(e) in computing the
individual's income for the year.
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(2) Subsection (1) applies to the 2001 and
subsequent taxation years.
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101. (1) Subparagraph (ii) of the
description of A in paragraph 118.81(a) of
the Act is replaced by the following:
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(2) Subsection (1) applies to the 2001 and
subsequent taxation years.
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102. (1) Section 119 of the Act is repealed.
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(2) The Act is amended by adding the
following after section 118.95:
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| Former
resident -
credit for tax
paid
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119. If at any particular time an individual
was deemed by subsection 128.1(4) to have
disposed of a capital property that was a
taxable Canadian property of the individual
throughout the period that began at the
particular time and that ends at the first time,
after the particular time, at which the
individual disposes of the property, there may
be deducted in computing the individual's tax
payable under this Part for the taxation year
that includes the particular time the lesser of
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(a) that proportion of the individual's tax for
the year otherwise payable under this Part
(within the meaning assigned by paragraph
(a) of the definition ``tax for the year
otherwise payable under this Part'' in
subsection 126(7)) that
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(i) the individual's taxable capital gain
from the disposition of the property at the
particular time
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(ii) the amount determined under
paragraph 114(a) in respect of the
individual for the year, and
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(b) that proportion of the individual's tax
payable under Part XIII in respect of
dividends received during the period by the
individual in respect of the property and
amounts deemed under Part XIII to have
been paid during the period to the
individual as dividends from corporations
resident in Canada, to the extent that the
amounts can reasonably be considered to
relate to the property, that
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(i) the amount by which the individual's
loss from the disposition of the property
at the end of the period is reduced by
subsection 40(3.7)
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(ii) the total amount of those dividends.
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(3) Subsection (1) applies to the 1995 and
subsequent taxation years.
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(4) Subsection (2) applies to dispositions
after December 23, 1998 by individuals who
cease to be resident in Canada after
October 1, 1996.
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103. (1) The portion of subsection 120(1)
of the Act before paragraph (a) is replaced
by the following:
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| Income not
earned in a
province
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120. (1) There shall be added to the tax
otherwise payable under this Part by an
individual for a taxation year the amount that
bears the same relation to 48% of the tax
otherwise payable under this Part by the
individual for the year that
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(2) Subsection 120(2.1) of the Act is
repealed.
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(3) Paragraphs 120(3)(a) and (b) of the
Act are replaced by the following:
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(a) if section 114 applies to the individual in
respect of the year, the amount determined
under paragraph 114(a) in respect of the
individual for the year;
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(b) if the individual was non-resident
throughout the year, the individual's
taxable income earned in Canada for the
year determined without reference to
paragraphs 115(1)(d) to (f); and
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(4) Clause (a)(ii)(A) of the definition ``tax
otherwise payable under this Part'' in
subsection 120(4) of the Act is replaced by
the following:
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(A) section 119 , subsection
120.4(2) and sections 126, 127,
127.4 and 127.41, and
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(5) Subsection (1) applies to the 2000 and
subsequent taxation years.
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(6) Subsections (2) and (4) apply to the
1996 and subsequent taxation years except
that, in its application to taxation years that
end before 2000, subsection (4) shall be read
as follows:
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(4) Paragraph (b) of the definition ``tax
otherwise payable under this Part'' in
subsection 120(4) of the Act is replaced by
the following:
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(b) the amount that, but for this section
and subsection 117(6), would be the tax
payable under this Part by the individual
for the year if this Part were read without
reference to any of sections 119, 126, 127
and 127.4.
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(7) Subsection (3) applies to the 1998 and
subsequent taxation years except that, for
taxation years that end before 2000,
paragraphs 120(3)(a) and (b) of the Act, as
enacted by subsection (3), shall be read as
follows:
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(a) if section 114 applies to the individual in
respect of the year, the amount determined
under paragraph 114(a) in respect of the
individual for the year; and
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(b) if the individual was non-resident
throughout the year, the individual's
taxable income earned in Canada for the
year determined without reference to
paragraphs 115(1)(d) to (f).
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104. (1) Subsection 120.2(4) of the Act is
replaced by the following:
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| Where
subsection (1)
does not apply
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(4) Subsection (1) does not apply in respect
of an individual's return of income filed under
subsection 70(2), paragraph 104(23)(d) or
128(2)(f) or subsection 150(4).
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(2) Subsection (1) applies to the 1996 and
subsequent taxation years.
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105. (1) Subsection 122(2) 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):
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(f) has not received any property after
December 17, 1999, where
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(i) the property was received as a result of
a transfer from another trust,
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(ii) subsection (1) applied to a taxation
year of the other trust that began before
the property was so received, and
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(iii) no change in the beneficial
ownership of the property resulted from
the transfer.
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(2) Subsection (1) applies to the 1999 and
subsequent taxation years.
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106. (1) Paragraph 122.3(1)(e) of the Act
is replaced by the following:
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(e) the amount, if any, by which
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(i) if the individual is resident in Canada
throughout the year , the individual's
income for the year, and
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(ii) if the individual is non-resident at any
time in the year, the amount determined
under paragraph 114(a) in respect of the
taxpayer for the year
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(iii) the total of all amounts each of which
is an amount deducted under section
110.6 or paragraph 111(1)(b) or
deductible under paragraph 110(1)(d.2),
(d.3), (f) or (j) in computing the
individual's taxable income for the year.
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(2) Subsection (1) applies to the 1998 and
subsequent taxation years.
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107. (1) Section 122.5 of the Act is
amended by adding the following after
subsection (5):
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| Exception
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(5.1) No amount is deemed to be paid under
subsection (3) by an individual for the 2000
taxation year if the individual is confined to a
prison or similar institution at any time during
the 12-month period that ends on June 30,
2002, unless the individual satisfies the
Minister that the individual's confinement is
for a period of not more than 6 months
included in that 12-month period.
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(2) Subsection (1) applies to amounts
deemed to be paid during months specified
for the 2000 taxation year.
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108. (1) Paragraph (b) of the description
of A in subsection 122.51(2) of the Act is
amended by replacing the reference to the
fraction ``25/17'' with a reference to the
fraction ``25/16''.
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(2) Subsection (1) applies to the 2001 and
subsequent taxation years.
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109. (1) Paragraph (e) of the definition
``eligible individual'' in section 122.6 of the
Act is amended by striking out the word
``or'' at the end of subparagraph (ii), by
adding the word ``or'' at the end of
subparagraph (iii) and by adding the
following after subparagraph (iii):
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(iv) was determined before that time to be
a member of a class defined in the
Humanitarian Designated Classes
Regulations made under the Immigration
Act,
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(2) Subsection (1) applies in respect of
overpayments deemed to arise during
months that are after June 2001.
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110. (1) The portion of the description of
B in subsection 122.61(1) of the Act before
paragraph (a) is replaced by the following:
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B is 4 % (or where the person is an eligible
individual in respect of only one qualified
dependant at the beginning of the month,
2 %) of the amount, if any, by which
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(2) Paragraph (b) of the description of B
in subsection 122.61(1) of the Act is
replaced by the following:
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(b) the greater of $32,000 and the dollar
amount, as adjusted annually and
referred to in paragraph 117(2)(a), that is
used for the calendar year following the
base taxation year; and
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(3) Paragraphs (a) and (b) of the
description of F in subsection 122.61(1) of
the Act are replaced by the following:
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(a) only one qualified dependant,
$1,255 , and
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(b) two or more qualified dependants, the
total of
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(i) $1,255 for the first qualified
dependant,
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(ii) $1055 for the second qualified
dependant, and
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(iii) $980 for each of the third and
subsequent qualified dependants,
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(4) Subsection 122.61(6.1) of the Act is
replaced by the following:
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| Agreement
with a
province
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(6.1) Notwithstanding subsection (5), for
the purposes of any agreement referred to in
section 122.63 with respect to overpayments
deemed to arise during months that are after
June 2001 and before July 2002, the amount
determined under subparagraph (5)(b)(ii) for
a month referred to in paragraph (6)(b) is
deemed to be 0.012.
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(5) Subsection (1) applies with respect to
overpayments deemed to arise during
months that are after June 2004.
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(6) Subsections (2) and (3) apply with
respect to overpayments deemed to arise
during months that are after June 2001.
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(7) Subsection (4) applies in respect of
overpayments deemed to arise during
months that are after June 2001 and before
July 2002.
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111. (1) Paragraph 123.2(a) of the Act is
replaced by the following:
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(a) the tax payable under this Part by the
corporation for the year determined without
reference to this section, sections 123.3,
123.4 and 125 to 126 and subsections
127(3), (5), (27) to (31), (34) and (35) and
137(3) and as if subsection 124(1) did not
contain the words ``in a province''
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(2) Subsection (1) applies to the 2001 and
subsequent taxation years.
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112. (1) The Act is amended by adding the
following after section 123.3:
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