(e) if the property was eligible capital property of the transferor in respect of a business of the transferor,
	(i) where the eligible capital expenditure of the transferor in respect of the property exceeds the cost at which the transferee trust is deemed by this subsection to have acquired the property, for the purposes of sections 14, 20 and 24,
	(A) the eligible capital expenditure of the transferee trust in respect of the property is deemed to be the amount that was the eligible capital expenditure of the transferor in respect of the property, and
	(B) 3/4 of the excess is deemed to have been allowed under paragraph 20(1)(b) to the transferee trust in respect of the property in computing income for taxation years that ended
	(I) before the particular time, and
	(II) after the adjustment time of the transferee trust in respect of the business, and
	(ii) for the purpose of determining after the particular time the amount required by paragraph 14(1)(b) to be included in computing the transferee trust's income in respect of any subsequent disposition of the property of the business, there shall be added to the value otherwise determined for Q in the definition ``cumulative eligible capital'' in subsection 14(5) the amount determined by the formula
	A x (B/C)
	where
	A is the amount, if any, determined for Q in that definition in respect of the business of the transferor immediately before the particular time,
	B is the fair market value of the property immediately before the particular time, and
	C is the fair market value immediately before the particular time of all eligible capital property of the transferor in respect of the business;
	(f) if the property was deemed to be taxable Canadian property of the transferor by this paragraph or paragraph 51(1)(f), 85(1)(i) or 85.1(1)(a), subsection 87(4) or (5) or paragraph 97(2)(c) or 107(2)(d.1), the property is deemed to be taxable Canadian property of the transferee trust;
	(g) where the transferor is a related segregated fund trust (in this paragraph having the meaning assigned by section 138.1),
	(i) paragraph 138.1(1)(i) does not apply in respect of a disposition of an interest in the transferor that occurs in connection with the qualifying disposition, and
	(ii) in computing the amount determined under paragraph 138.1(1)(i) in respect of a subsequent disposition of an interest in the transferee trust where the interest is deemed to exist in connection with a particular life insurance policy, the acquisition fee (as defined by subsection 138.1(6)) in respect of the particular policy shall be determined as if each amount determined under any of paragraphs 138.1(6)(a) to (d) in respect of the policyholder's interest in the transferor had been determined in respect of the policyholder's interest in the transferee trust;
	(h) if the transferor is a trust to which property had been transferred by an individual (other than a trust),
	(i) where subsection 73(1) applied in respect of the property so transferred and it is reasonable to consider that the property was so transferred in anticipation of the individual ceasing to be resident in Canada, for the purposes of paragraph 104(4)(a.3) and the application of this paragraph to a disposition by the transferee trust after the particular time, the transferee trust is deemed after the particular time to be a trust to which the individual had transferred property in anticipation of the individual ceasing to reside in Canada and in circumstances to which subsection 73(1) applied, and
	(ii) for the purposes of paragraph (j) of the definition ``excluded right or interest'' in subsection 128.1(10) and the application of this paragraph to a disposition by the transferee trust after the particular time, where the property so transferred was transferred in circumstances to which this subsection would apply if subsection (1) were read without reference to paragraphs (1)(h) and (i), the transferee trust is deemed after the particular time to be a trust an interest in which was acquired by the individual as a consequence of a qualifying disposition;
	(i) if the transferor is a trust (other than a personal trust or a trust prescribed for the purposes of subsection 107(2)), the transferee trust is deemed to be neither a personal trust nor a trust prescribed for the purposes of subsection 107(2);
	(j) if the transferor is a trust and a taxpayer disposes of all or part of a capital interest in the transferor because of the qualifying disposition and, as a consequence, acquires a capital interest or part of it in the transferee trust
	(i) the taxpayer is deemed to dispose of the capital interest or part of it in the transferor for proceeds equal to the cost amount to the taxpayer of that interest or part of it immediately before the particular time, and
	(ii) the taxpayer is deemed to acquire the capital interest or part of it in the transferee trust at a cost equal to the amount, if any, by which
	(A) that cost amount
	exceeds
	(B) the amount by which the taxpayer's loss otherwise determined from the disposition referred to in subparagraph (i) would be reduced because of paragraph 107(1)(c) or (d) if the proceeds under that subparagraph were equal to the fair market value of the capital interest or part of it in the transferor immediately before the particular time;
	(k) where the transferor is a trust, a taxpayer's beneficial ownership in the property ceases to be derived from the taxpayer's capital interest in the transferor because of the qualifying disposition and no part of the taxpayer's capital interest in the transferor was disposed of because of the qualifying disposition, there shall, immediately after the particular time, be added to the cost otherwise determined of the taxpayer's capital interest in the transferee trust, the amount determined by the formula
	A x [(B - C)/B] - D
	where
	A is the cost amount to the taxpayer of the taxpayer's capital interest in the transferor immediately before the particular time,
	B is the fair market value immediately before the particular time of the taxpayer's capital interest in the transferor,
	C is the fair market value at the particular time of the taxpayer's capital interest in the transferor (determined as if the only property disposed of at the particular time were the particular property), and
	D is the lesser of
	(i) the amount, if any, by which the cost amount to the taxpayer of the taxpayer's capital interest in the transferor immediately before the particular time exceeds the fair market value of the taxpayer's capital interest in the transferor immediately before the particular time, and
	(ii) the maximum amount by which the taxpayer's loss from a disposition of a capital interest otherwise determined could have been reduced because of paragraph 107(1)(c) or (d) if the taxpayer's capital interest in the transferor had been disposed of immediately before the particular time;
	(l) where paragraph (k) applies to the qualifying disposition in respect of a taxpayer, the amount that would be determined under that paragraph in respect of the qualifying disposition if the amount determined for D in that paragraph were nil shall, immediately after the particular time, be deducted in computing the cost otherwise determined of the taxpayer's capital interest in the transferor;
	(m) where paragraphs (j) and (k) do not apply in respect of the qualifying disposition, the transferor is deemed to acquire the capital interest or part of it in the transferee trust that is acquired as a consequence of the qualifying disposition
	(i) where the transferee trust is a personal trust, at a cost equal to nil, and
	(ii) in any other case, at a cost equal to the excess determined under paragraph (b) in respect of the qualifying disposition; and
	(n) if the transferor is a trust and a taxpayer disposes of all or part of an income interest in the transferor because of the qualifying disposition and, as a consequence, acquires an income interest or a part of an income interest in the transferee trust, for the purpose of subsection 106(2), the taxpayer is deemed not to dispose of any part of the income interest in the transferor at the particular time.
Fair market value of vested interest in trust	(4) Where
	(a) a particular capital interest in a trust is held by a beneficiary at any time,
	(b) the particular interest is vested indefeasibly at that time,
	(c) the trust is not described in any of paragraphs (a) to (e.1) of the definition ``trust'' in subsection 108(1), and
	(d) interests under the trust are not ordinarily disposed of for consideration that reflects the fair market value of the net assets of the trust,
	the fair market value of the particular interest at that time is deemed to be not less than the amount determined by the formula
	(A - B) x (C/D)
	where
	A is the total fair market value at that time of all properties of the trust,
	B is the total of all amounts each of which is the amount of a debt owing by the trust at that time or the amount of any other obligation of the trust to pay any amount that is outstanding at that time,
	C is the fair market value at that time of the particular interest (determined without reference to this subsection), and
	D is the total fair market value at that time of all interests as beneficiaries under the trust (determined without reference to this subsection).
	(2) Subsections 107.4(1) and (3) of the Act, as enacted by subsection (1), apply
	(a) to dispositions that occur after December 23, 1998 except that, in its application to dispositions that occurred in taxation years that ended before February 28, 2000, the reference to ``paragraph 14(1)(b)'' in subparagraph 107.4(3)(e)(ii) of the Act, as enacted by subsection (1), shall be read as a reference to ``subparagraph 14(1)(a)(v) or paragraph 14(1)(b)''; and
	(b) in respect of the 1993 and subsequent taxation years, to transfers of capital property that occurred before December 24, 1998 except that, in its application to transfers before December 24, 1998,
	(i) subsection 107.4(1) of the Act, as enacted by subsection (1), shall be read as follows:
	107.4 (1) For the purpose of this section, a ``qualifying disposition'' of a property means a transfer of the property to a particular trust that was not a disposition of the property for the purpose of subdivision c because of paragraph (e) of the definition ``disposition'' in section 54, except where
	(a) if the transfer is from another trust to the particular trust,
	(i) each trust can reasonably be considered to act as agent for the same beneficiary or beneficiaries in respect of the property transferred, or
	(ii) the transferee trust can reasonably be considered to act as agent for the transferor trust in respect of the property transferred; and
	(b) in any other case, it is reasonable to consider that the particular trust acts as agent in respect of the property transferred.
	(ii) the portion of subsection 107.4(3) of the Act before paragraph (a), as enacted by subsection (1), shall be read as follows:
	(3) Where at a particular time there is a qualifying disposition of a property by a person or partnership (in this subsection referred to as the ``transferor'') to a trust (in this subsection referred to as the ``transferee trust''), except for the purposes of Part XI and regulations made for the purposes of that Part
	(iii) subsection 107.4(3) of the Act, as enacted by subsection (1), shall be read without reference to paragraphs 107.4(3)(a), (c), (g) and (h) of the Act, as enacted by subsection (1),
	(iv) paragraph 107.4(3)(b) of the Act, as enacted by subsection (1), shall be read as follows:
	(b) the transferee trust's cost of the property is deemed to be the cost amount to the transferor of the property immediately before the particular time;
	(v) subsection 107.4(3) of the Act, as enacted by subsection (1), shall be read as if each amount determined under clause 107.4(3)(j)(ii)(B) of the Act and the description of D in paragraph 107.4(3)(k) of the Act, as enacted by subsection (1), were nil, and
	(vi) subparagraph 107.4(3)(m)(ii) of the Act, as enacted by subsection (1), shall be read as follows:
	(ii) in any other case, at a cost equal to the amount determined under paragraph (b) in respect of the qualifying disposition; and
	(3) Subsections 107.4(2), (2.1) and (4) of the Act, as enacted by subsection (1), apply to dispositions that occur after December 23, 1998.
	83. (1) The definition ``accumulating income'' in subsection 108(1) of the Act is replaced by the following:
``accumula- ting income'' « revenu accumulé »	``accumulating income'' of a trust for a taxation year means the amount that would be the income of the trust for the year if that amount were computed
	(a) without reference to paragraphs 104(4)(a) and (a.1) and subsections 104(5.1), (5.2) and (12) and 107(4),
	(b) as if the greatest amount that the trust was entitled to claim under subsection 104(6) in computing its income for the year were so claimed, and
	(c) without reference to subsection 12(10.2), except to the extent that that subsection applies to amounts paid to a trust to which paragraph 70(6.1)(b) applies and before the death of the spouse or common-law partner referred to in that paragraph;
	(2) The definition ``capital interest'' in subsection 108(1) of the Act is replaced by the following:
``capital interest'' « partici- pation au capital »	``capital interest'' of a taxpayer in a trust means all rights of the taxpayer as a beneficiary under the trust, and after 1999 includes a right (other than a right acquired before 2000 and disposed of before March 2000) to enforce payment of an amount by the trust that arises as a consequence of any such right, but does not include an income interest in the trust;
	(3) The definition ``income interest'' in subsection 108(1) of the Act is replaced by the following:
``income interest'' « partici- pation au revenu »	``income interest'' of a taxpayer in a trust means a right (whether immediate or future and whether absolute or contingent) of the taxpayer as a beneficiary under a personal trust to, or to receive, all or any part of the income of the trust and, after 1999, includes a right (other than a right acquired before 2000 and disposed of before March 2000) to enforce payment of an amount by the trust that arises as a consequence of any such right;
	(4) The portion of the definition ``cost amount'' in subsection 108(1) of the Act before paragraph (a) is replaced by the following:
``cost amount'' « coût indiqué »	``cost amount'' to a taxpayer at any time of a capital interest or part of the interest, as the case may be, in a trust (other than a trust that is a foreign affiliate of the taxpayer) means, except for the purposes of section 107.4 and notwithstanding subsection 248(1),
	(5) The definition ``cost amount'' in subsection 108(1) of the Act is amended by striking out the word ``and'' at the end of paragraph (a) and by adding the following after paragraph (a):
	(a.1) where that time is immediately before the time of the death of the taxpayer and subsection 104(4) or (5) deems the trust to dispose of property at the end of the day that includes that time, the amount that would be determined under paragraph (b) if the taxpayer had died on a day that ended immediately before that time, and
	(6) The definition ``trust'' in subsection 108(1) of the Act is amended by adding the following after paragraph (a):
	(a.1) a trust, other than a trust described in paragraph (a) or (d), all or substantially all of the property of which is held for the purpose of providing benefits to individuals each of whom is provided with benefits in respect of, or because of, an office or employment or former office or employment of any individual,
	(7) The portion of the definition ``trust'' in subsection 108(1) of the Act after paragraph (e.1) is replaced by the following:
	and, in applying subsections 104(4), (5), (5.2), (12), (14) and (15) and section 106 at any time, does not include
	(f) a trust that, at that time, is a unit trust, or