(v) the transferee does not file a written election with the Minister on or before the filing-due date for its taxation year in which the transfer is made (or on such later day as is acceptable to the Minister) that this paragraph not apply, and
	(vi) the transfer results, or is part of a series of transactions or events that results, in the transferor ceasing to exist and, immediately before the time of the transfer or the beginning of that series, as the case may be, the transferee never held any property or held only property having a nominal value,
	(h) where the property is part of a capital interest of a taxpayer in a trust (other than a personal trust or a trust prescribed for the purpose of subsection 107(2)) that is described by reference to units issued by the trust, a payment after 1999 from the trust in respect of the capital interest, where the number of units in the trust that are owned by the taxpayer is not reduced because of the payment,
	(i) where the property is a taxpayer's capital interest in a trust, a payment to the taxpayer after 1999 in respect of the capital interest to the extent that the payment
	(i) is out of the income of the trust (determined without reference to subsection 104(6)) for a taxation year or out of the capital gains of the trust for the year, if the payment was made in the year or the right to the payment was acquired by the taxpayer in the year, or
	(ii) is in respect of an amount designated in respect of the taxpayer by the trust under subsection 104(20),
	(j) any transfer of the property for the purpose only of securing a debt or a loan, or any transfer by a creditor for the purpose only of returning property that had been used as security for a debt or a loan,
	(k) any transfer of the property to a trust as a consequence of which there is no change in the beneficial ownership of the property, where the main purpose of the transfer is
	(i) to effect payment under a debt or loan,
	(ii) to provide assurance that an absolute or contingent obligation of the transferor will be satisfied, or
	(iii) to facilitate either the provision of compensation or the enforcement of a penalty, in the event that an absolute or contingent obligation of the transferor is not satisfied,
	(l) any issue of a bond, debenture, note, certificate, mortgage or hypothecary claim, and
	(m) any issue by a corporation of a share of its capital stock, or any other transaction that, but for this paragraph, would be a disposition by a corporation of a share of its capital stock;
``foreign currency'' « monnaie étrangère »	``foreign currency'' means currency of a country other than Canada;
``foreign resource expense'' « frais relatifs à des ressources à l'étranger »	``foreign resource expense'' has the meaning assigned by subsection 66.21(1);
``foreign resource pool expenses'' « frais globaux relatifs à des ressources à l'étranger »	``foreign resource pool expenses'' of a taxpayer means the taxpayer's foreign resource expenses in respect of all countries and the taxpayer's foreign exploration and development expenses;
``joint spousal or common-law partner trust'' « fiducie mixte au profit de l'époux ou du conjoint de fait »	``joint spousal or common-law partner trust'' means a trust to which paragraph 104(4)(a) would apply if that paragraph were read without reference to subparagraph 104(4)(a)(iii) and clause 104(4)(a)(iv)(A);
``OSFI risk-weighting guidelines'' « lignes directrices du BSIF sur la pondération des risques »	``OSFI risk-weighting guidelines'' means the guidelines, issued by the Superintendent of Financial Institutions under the authority of section 600 of the Bank Act, requiring an authorized foreign bank to provide to the Superintendent on a periodic basis a return of the bank's risk-weighted on-balance sheet assets and off-balance sheet exposures, that apply as of August 8, 2000;
``post-1971 spousal or common-law partner trust'' « fiducie au profit de l'époux ou du conjoint de fait postérieure à 1971 »	``post-1971 spousal or common-law partner trust'' means a trust that would be described in paragraph 104(4)(a) if that paragraph were read without reference to subparagraph 104(4)(a)(iv);
``qualified donee'' « donataire reconnu »	``qualified donee'' has the meaning assigned by subsection 149.1(1).
	(6) Section 248 of the Act is amended by adding the following after subsection (25):
Trust-to-trust transfers	(25.1) Where at any time a particular trust transfers property to another trust (other than a trust governed by a registered retirement savings plan or by a registered retirement income fund) in circumstances to which paragraph (f) of the definition ``disposition'' in subsection (1) applies, without affecting the personal liabilities under this Act of the trustees of either trust or the application of subsection 104(5.8) and paragraph 122(2)(f), the other trust is deemed to be after that time the same trust as, and a continuation of, the particular trust.
Trusts to ensure obligations fulfilled	(25.2) Except for the purpose of this subsection, where at any time property is transferred to a trust in circumstances to which paragraph (k) of the definition ``disposition'' in subsection (1) applies, the trust is deemed to deal with the property as agent for the transferor throughout the period that begins at the time of the transfer and ends at the time of the first change after that time in the beneficial ownership of the property.
Cost of trust interest	(25.3) The cost to a taxpayer of a particular unit of a trust is deemed to be equal to the amount described in paragraph (a) where
	(a) the trust issues the particular unit to the taxpayer directly in satisfaction of a right to enforce payment of an amount by the trust in respect of the taxpayer's capital interest in the trust;
	(b) at the time that the particular unit is issued, the trust is neither a personal trust nor a trust prescribed for the purpose of subsection 107(2); and
	(c) either
	(i) the particular unit is capital property and subparagraph 53(2)(h)(i.1) applies in respect of the amount described in paragraph (a), or would apply if that subparagraph were read without reference to clauses 53(2)(h)(i.1) (A) and (B), or
	(ii) the particular unit is not capital property and subparagraph 53(2)(h)(i.1) does not apply in respect of the amount described in paragraph (a) but would so apply if that subparagraph were read without reference to clauses 53(2)(h)(i.1)(A) and (B).
Where acquisition by another of right to enforce	(25.4) If at a particular time a taxpayer's capital interest in a trust includes a right to enforce payment of an amount by the trust, the amount shall be added at the particular time to the cost otherwise determined to the taxpayer of the capital interest where
	(a) immediately after the particular time there is a disposition by the taxpayer of the capital interest;
	(b) as a consequence of the disposition, the right to enforce payment of the amount is acquired by another person or partnership; and
	(c) if the right to enforce payment of the amount had been satisfied by a payment to the taxpayer by the trust, there would have been no disposition of that right for the purposes of this Act because of the application of paragraph (i) of the definition ``disposition'' in subsection (1).
	(7) Section 248 of the Act is amended by adding the following after subsection (28):
Prescribed stock exchange rule	(29) A part, division or subdivision of a stock exchange that is prescribed for the purpose of any provision of this Act is deemed for that purpose to be a prescribed stock exchange.
	(8) The definition ``foreign resource property'' in subsection 248(1) of the Act, as enacted by subsection (1), and the definitions ``foreign resource expense'' and ``foreign resource pool expense'' in subsection 248(1) of the Act, as enacted by subsection (5), apply after 2000.
	(9) The definition ``net capital loss'' in subsection 248(1) of the Act, as enacted by subsection (1), applies to taxation years that end after February 27, 2000.
	(10) Subsection (2) applies after October 1, 1996 except that, in its application before December 24, 1998, the portion of paragraph (b) of the definition ``taxable Canadian property'' in subsection 248(1) of the Act before subparagraph (i), as enacted by subsection (2), shall be read as follows:
	(b) capital property used by the taxpayer in carrying on a business in Canada, other than
	(11) Subsection (3) applies in respect of dividends received after 1998.
	(12) Subsection (4) applies after December 23, 1998.
	(13) The definitions ``alter ego trust'' and ``joint spousal or common-law partner trust'' in subsection 248(1) of the Act, as enacted by subsection (5), apply to trusts created after 1999.
	(14) The definitions ``authorized foreign bank'', ``bank'', ``Canadian banking business'', ``foreign currency'' and ``OSFI risk-weighting guidelines'' in subsection 248(1) of the Act, as enacted by subsection (5), apply after June 27, 1999.
	(15) The definition ``disposition'' in subsection 248(1) of the Act, as enacted by subsection (5), applies to transactions and events that occur after December 23, 1998, except that paragraphs (f) and (g) of that definition, as enacted by subsection (5), shall not apply for the purposes of the Act (other than section 107.4 of the Act, as enacted by subsection 82(1)) to a transfer of property, that occurred before 2000, by a trust governed by a registered retirement savings plan or by a registered retirement income fund to a trust governed by a registered retirement income fund (or to a transfer by a trust governed by a registered retirement income fund to a trust governed by a registered retirement savings plan) unless the transferee trust files a written election with the Minister of National Revenue on or before the filing-due date for its taxation year in which the transfer is made (or on such later day as is acceptable to the Minister) that paragraph (f) or (g), as the case may be, of that definition apply.
	(16) The definition ``post-1971 spousal or common-law partner trust'' in subsection 248(1) of the Act, as enacted by subsection (5), applies to trusts created after 1971.
	(17) The definition ``qualified donee'' in subsection 248(1) of the Act, as enacted by subsection (5), applies after 1998.
	(18) Subsections 248(25.1), (25.2) and (25.4) of the Act, as enacted by subsection (6), apply to transfers that occur after December 23, 1998.
	(19) Subsection 248(25.3) of the Act, as enacted by subsection (6), applies to the 1999 and subsequent taxation years.
	(20) Subsection (7) applies after October 1999.
	189. (1) The portion of paragraph 249.1(1)(b) of the Act after subparagraph (iii) is replaced by the following:
	after the end of the calendar year in which the period began unless, in the case of a business, the business is not carried on in Canada, is a prescribed business or is carried on by a prescribed person or partnership,
	(2) Subsection (1) applies to fiscal periods that begin after 1994.
	190. (1) Subsection 250(5) of the Act is replaced by the following:
Deemed non-resident	(5) Notwithstanding any other provision of this Act (other than paragraph 126(1.1)(a)) , a person is deemed not to be resident in Canada at a time if, at that time, the person would, but for this subsection and any tax treaty, be resident in Canada for the purposes of this Act but is, under a tax treaty with another country, resident in the other country and not resident in Canada.
	(2) Section 250 of the Act is amended by adding the following after subsection (6):
Residence of inter vivos trusts	(6.1) For the purposes of provisions of this Act that apply to a trust for a taxation year only where the trust has been resident in Canada throughout the year, where a particular trust ceases at any time to exist and the particular trust was resident in Canada immediately before that time, the particular trust is deemed to be resident in Canada throughout the period that begins at that time and ends at the end of the year.
	(3) Subsection (1) applies after June 27, 1999, except that if on February 24, 1998 an individual who would, but for a tax treaty (within the meaning assigned by subsection 248(1) of the Act), be resident in Canada for the purposes of the Act is, under the tax treaty, resident in another country, subsection (1) does not apply to the individual until the first time after June 27, 1999 at which the individual becomes, under a tax treaty, resident in a country other than Canada.
	(4) Subsection (2) applies to the 1990 and subsequent taxation years.
	191. (1) The Act is amended by adding the following after section 250:
Non-resident person's taxation year and income	250.1 For greater certainty, unless the context requires otherwise
	(a) a taxation year of a non-resident person shall be determined, except as otherwise permitted by the Minister, in the same manner as the taxation year of a person resident in Canada; and
	(b) a person for whom income for a taxation year is determined in accordance with this Act includes a non-resident person.
	(2) Subsection (1) applies after December 17, 1999.
	192. (1) Subsection 251(1) of the Act is amended by striking out the word ``and'' at the end of paragraph (a) and by replacing paragraph (b) with the following:
	(b) a taxpayer and a personal trust (other than a trust described in any of paragraphs (a) to (e.1) of the definition ``trust'' in subsection 108(1)) are deemed not to deal with each other at arm's length if the taxpayer, or any person not dealing at arm's length with the taxpayer, would be beneficially interested in the trust if subsection 248(25) were read without reference to subclauses 248(25)(b)(iii)(A)(II) to (IV); and
	(c) where paragraph (b) does not apply , it is a question of fact whether persons not related to each other are at a particular time dealing with each other at arm's length.
	(2) Subsection (1) applies after December 23, 1998 except that paragraph 251(1)(b) of the Act, as enacted by subsection (1), shall, for the purpose of applying the definition ``taxable Canadian property'' in subsection 248(1) of the Act, not apply in respect of property acquired before December 24, 1998.
	193. (1) The Act is amended by adding the following after section 253:
Investments in limited partnerships	253.1 For the purposes of subparagraph 108(2)(b)(ii), paragraphs 130.1(6)(b), 131(8)(b), 132(6)(b) and 149(1)(o.2), the definition ``private holding corporation'' in subsection 191(1) and regulations made for the purposes of paragraphs 149(1)(o.3) and (o.4), where a trust or corporation holds an interest as a member of a partnership and, by operation of any law governing the arrangement in respect of the partnership, the liability of the member as a member of the partnership is limited, the member shall not, solely because of its acquisition and holding of that interest, be considered to carry on any business or other activity of the partnership.
	(2) Subsection (1) applies after 1992, except that for taxation years that end after December 16, 1999 and before 2003, section 253.1 of the Act, as enacted by subsection (1), shall be read as follows:
	253.1 For the purposes of subparagraph 108(2)(b)(ii), paragraphs 130.1(6)(b), 131(8)(b), 132(6)(b) and 149(1)(o.2), the definition ``private holding corporation'' in subsection 191(1) and regulations made for the purposes of paragraphs 149(1)(o.3) and (o.4), where a trust or corporation is a member of a partnership and, by operation of any law governing the arrangement in respect of the partnership, the liability of the member as a member of the partnership is limited, the member is deemed
	(a) to undertake an investing of its funds because of its acquisition and holding of its interest as a member of the partnership; and
	(b) not to carry on any business or other activity of the partnership.
	194. (1) Section 256 of the Act is amended by adding the following after subsection (6):
Simultaneous control	(6.1) For the purposes of this Act and for greater certainty,
	(a) where a corporation (in this paragraph referred to as the ``subsidiary'') would be controlled by another corporation (in this paragraph referred to as the ``parent'') if the parent were not controlled by any person or group of persons, the subsidiary is controlled by
	(i) the parent, and
	(ii) any person or group of persons by whom the parent is controlled; and
	(b) where a corporation (in this paragraph referred to as the ``subject corporation'') would be controlled by a group of persons (in this paragraph referred to as the ``first-tier group'') if no corporation that is a member of the first-tier group were controlled by any person or group of persons, the subject corporation is controlled by
	(i) the first-tier group, and
	(ii) any group of one or more persons comprised of, in respect of every member of the first-tier group, either the member, or a person or group of persons by whom the member is controlled.