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(c) a right of the individual under an
agreement referred to in subsection 7(1);
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(d) a right of the individual to a retiring
allowance;
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(e) a right of the individual under, or an
interest of the individual in, a trust that is
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(ii) an amateur athlete trust,
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(iii) a cemetery care trust, or
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(iv) a trust governed by an eligible
funeral arrangement;
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(f) a right of the individual to receive a
payment under
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(i) an annuity contract, or
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(ii) an income-averaging annuity
contract;
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(g) a right of the individual to a benefit
under
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(i) the Canada Pension Plan or a
provincial plan described in section 3
of that Act,
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(ii) the Old Age Security Act,
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(iii) a provincial pension plan
prescribed for the purpose of
paragraph 60(v), or
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(iv) a plan or arrangement instituted by
the social security legislation of a
country other than Canada or of a state,
province or other political subdivision
of such a country;
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(h) a right of the individual to a benefit
described in any of subparagraphs
56(1)(a)(iii) to (vi);
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(i) a right of the individual to a payment
out of a NISA Fund No. 2;
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(j) an interest of the individual in a
personal trust resident in Canada if the
interest was never acquired for
consideration and did not arise as a
consequence of a qualifying disposition
by the individual (within the meaning
that would be assigned by subsection
107.4(1) if that subsection were read
without reference to paragraphs
107.4(1)(h) and (i));
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(k) an interest of the individual in a
non-resident testamentary trust if the
interest was never acquired for
consideration; or
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(l) an interest of the individual in a life
insurance policy in Canada, except for
that part of the policy in respect of which
the individual is deemed by paragraph
138.1(1)(e) to have an interest in a related
segregated fund trust.
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| ``reportable
property''
« bien à
déclarer »
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``reportable property'' of an individual at a
particular time means any property other
than
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(a) money that is legal tender in Canada
and deposits of such money;
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(b) property that would be an excluded
right or interest of the individual if the
definition ``excluded right or interest'' in
this subsection were read without
reference to paragraphs (c), (j) and (l) of
that definition;
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(c) if the individual is not a trust and was
not, during the 120-month period that
ends at the particular time, resident in
Canada for more than 60 months,
property described in subparagraph
(4)(b)(iv) that is not taxable Canadian
property; and
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(d) any item of personal-use property the
fair market value of which, at the
particular time, is less than $10,000.
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(6) Subsections (1) to (5) (other than
paragraph 128.1(4)(d.1) of the Act, as
enacted by subsection (4), and subsection
128.1(9) of the Act and the definition
``reportable property'' in subsection
128.1(10) of the Act, as enacted by
subsection (5)) apply to changes in
residence that occur after October 1, 1996,
and
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(a) an election made under any of
paragraphs 128.1(6)(a) and (c),
128.1(7)(d) and (g) and 128.1(8)(c) of the
Act, as enacted by subsection (5), by an
individual who ceased to be resident in
Canada before the day on which this Act
receives royal assent, is deemed to have
been made in a timely manner if it is
made on or before the individual's
filing-due date for the taxation year that
includes that day; and
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(b) a form described in subsection
128.1(9) of the Act, as enacted by
subsection (5), filed by an individual who
ceased to be resident in Canada before
the day on which this Act receives royal
assent, is deemed to have been filed in a
timely manner if it is filed on or before the
individual's filing-due date for the
taxation year that includes that day.
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(7) Paragraph 128.1(4)(d.1) of the Act, as
enacted by subsection (4), applies to
changes in residence that occur after 1992.
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(8) Subsection 128.1(9) of the Act and the
definition ``reportable property'' in
subsection 128.1(10) of the Act, as enacted
by subsection (5), apply to changes in
residence that occur after 1995.
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124. (1) If an individual ceased at any
time after 1992 and before October 2, 1996
to be resident in Canada and so elects in
writing and files the election with the
Minister of National Revenue before the
end of the sixth month following the month
in which this Act receives royal assent,
subparagraph 128.1(4)(b)(iii) of the Act as
it read at that time shall, in respect of the
cessation of residence, be read as enacted by
this Act and as though subsection 128.1(10)
of the Act, as enacted by this Act, applied.
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(2) Where an individual makes an
election under subsection (1),
notwithstanding subsections 152(4) to (5) of
the Act, any reassessment of the
individual's tax, interest or penalties for
any year shall be made that is necessary to
take the election into account.
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125. (1) The Act is amended by adding the
following after section 128.2:
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| Former
resident -
replaced
shares
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128.3 If, in a transaction to which section
51, subparagraphs 85.1(1)(a)(i) and (ii) or
section 86 or 87 apply, a person acquires a
share (in this section referred to as the ``new
share'') in exchange for another share (in this
section referred to as the ``old share''), for the
purposes of section 119, subsections
126(2.21) to (2.23), 128.1(6) to (8), 180.1(1.4)
and 220(4.5) and (4.6), the person is deemed
not to have disposed of the old share, and the
new share is deemed to be the same share as
the old share.
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(2) Subsection (1) applies after October 1,
1996.
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126. (1) Section 129 of the Act is amended
by adding the following after subsection (3):
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| Application
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(3.1) Where, in a taxation year that begins
after November 12, 1981, a corporation that
last became a private corporation on or before
that date and that was throughout the year a
private corporation, other than a
Canadian-controlled private corporation, has
included in its income for the year an amount
in respect of property that the corporation
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(a) disposed of before November 13, 1981,
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(b) was obligated to dispose of under the
terms of an agreement in writing entered
into before November 13, 1981, or
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(c) is deemed by subsection 44(2) to have
disposed of at any time after November 12,
1981 because of an event referred to in
paragraph (b), (c) or (d) of the definition
``proceeds of disposition'' in section 54 in
respect of the disposition that occurred
before November 13, 1981,
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paragraph 3(a) shall apply as if the
corporation were a Canadian-controlled
private corporation throughout the year,
except that the total of the amounts
determined under that paragraph in respect of
the corporation for the year shall not exceed
the amount that would be so determined if the
only income of the corporation for the year
were the amount included in respect of the
disposition of such property.
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(2) Subsection (1) applies to taxation
years that end after June 1995 and before
2003.
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127. (1) Subparagraph 130.1(1)(a)(ii) of
the Act is amended by replacing the
reference to the fraction ``3/4'' with a
reference to the fraction ``1/2''.
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(2) Subparagraph 130.1(4)(a)(i) of the
Act is amended by replacing the reference
to the expression ``4/3 of'' with a reference
to the word ``twice''.
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(3) Paragraph 130.1(4)(b) of the Act is
replaced by the following:
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(b) notwithstanding any other provision of
this Act, any amount received by a taxpayer
in a taxation year as, on account of, in lieu
of payment of or in satisfaction of, the
dividend shall not be included in computing
the taxpayer's income for the year as
income from a share of the capital stock of
the corporation, and
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(i) where the dividend was in respect of
capital gains of the corporation from
dispositions of property that occurred
before February 28, 2000 and the
taxation year of the taxpayer began after
February 27, 2000 and ended before
October 18, 2000, 9/8 of the dividend is
deemed to be a capital gain of the
taxpayer from the disposition by the
taxpayer of a capital property in the year,
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(ii) where the dividend was in respect of
capital gains of the corporation from
dispositions of property that occurred
before February 28, 2000, and the
taxation year of the taxpayer includes
February 27, 2000, the dividend is
deemed to be a capital gain of the
taxpayer from the disposition by the
taxpayer of a capital property in the year
and before February 28, 2000,
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(iii) where the dividend was in respect of
capital gains of the corporation from
dispositions of property that occurred
before February 28, 2000 and the
taxation year of the taxpayer began after
October 17, 2000, 3/2 of the dividend is
deemed to be a capital gain of the
taxpayer from the disposition by the
taxpayer of a capital property in the year,
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(iii.1) where the dividend was in respect
of capital gains of the corporation from
dispositions of property that occurred
before February 28, 2000 and the
taxation year of the taxpayer begins after
February 27, 2000 and ends after October
17, 2000, 9/8 of the dividend is deemed
to be a capital gain of the taxpayer from
the disposition by the taxpayer of capital
property in the year and before October
18, 2000,
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(iv) where the dividend was in respect of
capital gains of the corporation from
dispositions of property that occurred
after February 27, 2000 and before
October 18, 2000, and the taxation year
of the taxpayer began after October 17,
2000, 4/3 of the dividend is deemed to be
a capital gain of the taxpayer from the
disposition by the taxpayer of a capital
property in the year,
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(v) where the dividend was in respect of
capital gains of the corporation from
dispositions of property that occurred
after February 27, 2000, and before
October 18, 2000 and the taxation year of
the taxpayer includes October 17, 2000,
the dividend is deemed to be a capital
gain of the taxpayer from the disposition
by the taxpayer of a capital property in
the year and in the period that began after
February 27, 2000 and ended before
October 18, 2000,
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(vi) where the dividend was in respect of
capital gains of the corporation from
dispositions of property that occurred
after February 27, 2000, and before
October 17, 2000 and the taxation year of
the taxpayer began after February 27,
2000 and ended before October 17, 2000,
the dividend is deemed to be a capital
gain of the taxpayer from the disposition
by the taxpayer of a capital property in
the year, and
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(vii) in any other case, the dividend is
deemed to be a capital gain of the
taxpayer from the disposition of capital
property after October 17, 2000 and in
the year.
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(4) Section 130.1 of the Act is amended by
adding the following after subsection (4.1):
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| Reporting
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(4.2) Where paragraph (4)(b) applies to a
dividend paid by a mortgage investment
corporation to a shareholder of any class of
shares of its capital stock in the period that
begins 91 days after the beginning of the
corporation's taxation year that includes
February 28, 2000 or October 17, 2000 and
ends 90 days after the end of that year, the
corporation shall disclose to the shareholder in
prescribed form the amount of the dividend
that is in respect of capital gains realized on
dispositions of property that occurred
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(a) before February 28, 2000,
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(b) after February 27, 2000 and before
October 18, 2000, and
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(c) after October 17, 2000
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and, if it does not do so, the dividend is
deemed to be in respect of capital gains from
dispositions of property that occurred before
February 28, 2000.
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| Allocation
|
(4.3) Where subsection (4) applies in
respect of a dividend paid by a mortgage
investment corporation at any time in the
period that begins 91 days after the beginning
of the corporation's taxation year that includes
February 28, 2000 or October 17, 2000 and
ends 90 days after the end of that year, and the
corporation does not elect under subsection
(4.4), the following rules apply:
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(a) the portion of the dividend that is in
respect of capital gains from dispositions of
property that occurred in the year and in the
particular period that began at the
beginning of the year and ended at the end
of February 27, 2000 is deemed to be that
proportion of the dividend that the net
capital gains of the corporation from the
dispositions of property in the particular
period is of the total of the corporation's net
capital gains from the dispositions of
property in each of the particular periods
referred to in this subsection,
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(b) the portion of the dividend that is in
respect of capital gains from dispositions of
property that occurred in the year and in the
particular period that began at the
beginning of February 28, 2000 and ended
at the end of October 17, 2000 is deemed to
be that proportion of the dividend that the
net capital gains of the corporation from the
dispositions of property in the particular
period is of the total of the corporation's net
capital gains from the dispositions of
property in each of the particular periods
referred to in this subsection,
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(c) the portion of the dividend that is in
respect of capital gains from dispositions of
property that occurred in the year and in the
particular period that begins at the
beginning of October 18, 2000 and ends at
the end of the year, is deemed to be that
proportion of the dividend that the net
capital gains of the corporation from the
dispositions of property in the particular
period is of the total of the corporation's net
capital gains from the dispositions of
property in each of the periods referred to in
this subsection, and
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in this subsection net capital gains from
dispositions of property in a particular period
means the amount, if any, by which the
corporation's capital gains from dispositions
of property in the particular period exceeds the
corporation's capital losses from dispositions
of property in the particular period.
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| Allocation
|
(4.4) Where subsection (4) applies in
respect of a dividend paid by a mortgage
investment corporation in the period that
begins 91 days after the beginning of the
corporation's taxation year that includes
February 28, 2000 or October 17, 2000 and
ends 90 days after the end of that year, and the
corporation so elects under this subsection in
its return of income for the year, the following
rules apply:
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(a) the portion of the dividend that is in
respect of capital gains from dispositions of
property that occurred in the year and
before February 28, 2000 is deemed to be
that proportion of the dividend that the
number of days that are in that year and
before February 28, 2000 is of the number
of days that are in that year;
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(b) the portion of the dividend that is in
respect of capital gains from dispositions of
property that occurred in the year and in the
period that began at the beginning of
February 28, 2000 and ended at the end of
October 17, 2000 is deemed to be that
proportion of the dividend that the number
of days that are in the year and in that period
is of the number of days that are in the year;
and
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(c) the portion of the dividend that is in
respect of capital gains from dispositions of
property that occurred in the year and in the
period that begins at the beginning of
October 18, 2000 and ends at the end of the
year, is deemed to be that proportion of the
dividend that the number of days that are in
the year and in that period is of the number
of days that are in the year.
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| Allocation
|
(4.5) Where no dividend to which
subsection (4.4) applies is paid by a mortgage
investment corporation in respect of its net
taxable capital gains for its taxation year that
includes February 28, 2000 or October 17,
2000, the corporation has net capital gains or
net capital losses from dispositions of
property in the year, and the corporation so
elects under this subsection in its return of
income for the year
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(a) the portion of those net capital gains and
net capital losses that is in respect of capital
gains and losses from dispositions of
property that occurred before February 28,
2000 is deemed to be that proportion of the
net capital gains or net capital losses
respectively that the number of days that are
in the year and before February 28, 2000 is
of the number of days that are in the year,
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(b) the portion of those net capital gains and
net capital losses that is in respect of capital
gains and losses from dispositions of
property that occurred in the year and in the
period that began at the beginning of
February 28, 2000 and ended at the end of
October 17, 2000, is deemed to be that
proportion of the net capital gains or net
capital losses respectively that the number
of days that are in the year and in that period
is of the number of days that are in the year,
and
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(c) the portion of those net capital gains and
net capital losses that is in respect of capital
gains and losses from dispositions of
property that occurred in the year and in the
period that began at the beginning of
October 18, 2000 and ended at the end of the
year, is deemed to be that proportion of the
net capital gains or net capital losses
respectively that the number of days that are
in the year and in that period is of the
number of days that are in the year,
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and, for the purpose of this subsection,
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(d) the net capital gains of a mortgage
investment corporation from dispositions
of property in a year is the amount, if any,
by which the corporation's capital gains
from dispositions of property in a year
exceeds the corporation's capital losses
from dispositions of property in the year,
and
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(e) the net capital losses of a mortgage
investment corporation from dispositions
of property in a year is the amount, if any,
by which the corporation's capital losses
from dispositions of property in a year
exceeds the corporation's capital gains
from dispositions of property in the year.
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(5) Subsections (1) to (4) apply to taxation
years that end after February 27, 2000
except that, for a corporation's taxation
year that includes February 28, 2000 or
October 17, 2000, or began after February
28, 2000 and ended before October 17,
2000,
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(a) the reference to the fraction ``1/2'' in
subparagraph 130.1(1)(a)(ii) of the Act,
as enacted by subsection (1), shall be read
as a reference to the fraction in
paragraph 38(a) of the Act, as enacted by
subsection 22(1), that applies to the
corporation for the year; and
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(b) the reference to the word ``twice'' in
subparagraph 130.1(4)(a)(i) of the Act, as
enacted by subsection (2), shall be read as
a reference to the expression ``the
fraction that is the reciprocal of the
fraction in paragraph 38(a), as enacted
by subsection 22(1) of the Income Tax
Amendments Act, 2000, that applies to the
corporation for the year, multiplied by''.
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128. (1) Paragraph 131(1)(b) of the Act is
replaced by the following:
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(b) notwithstanding any other provision of
this Act, any amount received by a taxpayer
in a taxation year as, on account of, in lieu
of payment of or in satisfaction of, the
dividend shall not be included in computing
the taxpayer's income for the year as
income from a share of the capital stock of
the corporation, and
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(i) where the dividend was in respect of
capital gains of the corporation from
dispositions of property that occurred
before February 28, 2000, and the
taxation year of the taxpayer began after
February 27, 2000 and ended before
October 18, 2000, 9/8 of the dividend is
deemed to be a capital gain of the
taxpayer from the disposition by the
taxpayer of a capital property in the year,
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