(ii) the donee was neither a policyholder under the policy, nor an assignee of the individual's interest under the policy; and
	(d) the transfer occurs within the 36 month period that begins at the time of the death (or, where written application to extend the period has been made to the Minister by the individual's legal representative, within such longer period as the Minister considers reasonable in the circumstances).
Deemed gift - subsection (5.1)	(5.2) Where this subsection applies,
	(a) for the purpose of this section (other than subsection (5.1) and this paragraph), the transfer described in subsection (5.1) is deemed to be a gift made, immediately before the individual's death, by the individual to the qualified donee referred to in subsection (5.1); and
	(b) the fair market value of the gift is deemed to be the fair market value, at the time of the individual's death, of the right to that transfer (determined without reference to any risk of default with regard to obligations of the insurer).
Direct designation - RRSPs and RRIFs	(5.3) Where as a consequence of an individual's death, a transfer of money, or a transfer by means of a negotiable instrument, is made, from a registered retirement savings plan or registered retirement income fund (other than a plan or fund of which a licensed annuities provider is the issuer or carrier, as the case may be) to a qualified donee, solely because of the donee's interest as a beneficiary under the plan or fund, the individual was the annuitant (within the meaning assigned by subsection 146(1) or 146.3(1)) under the plan or fund immediately before the individual's death and the transfer occurs within the 36-month period that begins at the time of the death (or, where written application to extend the period has been made to the Minister by the individual's legal representative, within such longer period as the Minister considers reasonable in the circumstances),
	(a) for the purposes of this section (other than this paragraph), the transfer is deemed to be a gift made, immediately before the individual's death, by the individual to the donee; and
	(b) the fair market value of the gift is deemed to be the fair market value, at the time of the individual's death, of the right to the transfer (determined without reference to any risk of default with regard to the obligations of the issuer of the plan or the carrier of the fund).
	(5) The portion of subsection 118.1(6) of the Act after paragraph (b) is replaced by the following:
	and the fair market value of the property otherwise determined at that time exceeds its adjusted cost base to the individual, such amount, not greater than the fair market value and not less than the adjusted cost base to the individual of the property at that time, as the individual or the individual's legal representative designates in the individual's return of income under section 150 for the year in which the gift is made is, if the making of the gift is proven by filing with the Minister a receipt containing prescribed information, deemed to be the individual's proceeds of disposition of the property and, for the purposes of subsection (1), the fair market value of the gift made by the individual.
	(6) Subsections 118.1(7) and (7.1) of the Act are replaced by the following:
Gifts of art	(7) Except where subsection (7.1) applies, where at any time, whether by the individual's will or otherwise, an individual makes a gift described in the definition ``total charitable gifts'' or ``total Crown gifts'' in subsection (1) of a work of art that was
	(a) created by the individual and that is property in the individual's inventory, or
	(b) acquired under circumstances where subsection 70(3) applied,
	and at that time the fair market value of the work of art exceeds its cost amount to the individual, the following rules apply:
	(c) where the gift is made as a consequence of the death of the individual, the gift is deemed to have been made immediately before the death, and
	(d) the amount, not greater than that fair market value at the time the gift is made and not less than the cost amount of the property to the individual, that is designated in the individual's return of income under section 150 for the year in which the gift is made is, if the making of the gift is proven by filing with the Minister a receipt containing prescribed information, deemed to be the individual's proceeds of disposition of the work of art and, for the purposes of subsection (1), the fair market value of the gift made by the individual.
Gifts of cultural property	(7.1) Where at any particular time, whether by the individual's will or otherwise, an individual makes a gift described in the definition ``total cultural gifts'' in subsection (1) of a work of art that was
	(a) created by the individual and that is property in the individual's inventory, or
	(b) acquired under circumstances where subsection 70(3) applied,
	and at that time the fair market value of the work of art exceeds its cost amount to the individual, the following rules apply:
	(c) where the gift is made as a consequence of the death of the individual, the individual is deemed to have made the gift immediately before the death, and
	(d) the individual is deemed to have received at the particular time proceeds of disposition in respect of the gift equal to its cost amount to the individual at that time.
	(7) Subsection 118.1(10.1) of the Act is replaced by the following:
Determina- tion of fair market value	(10.1) For the purposes of subparagraph 69(1)(b)(ii), subsection 70(5) and sections 110.1, 207.31 and this section, where at any time the Canadian Cultural Property Export Review Board or the Minister of the Environment determines or redetermines an amount to be the fair market value of a property that is the subject of a gift described in paragraph 110.1(1)(a), or in the definition ``total charitable gifts'' in subsection (1), made by a taxpayer within the two-year period that begins at that time, an amount equal to the last amount so determined or redetermined within the period is deemed to be the fair market value of the gift at the time the gift was made and, subject to subsections (6), (7), (7.1) and 110.1(3), to be the taxpayer's proceeds of disposition of the gift.
Request for determina- tion by the Minister of the Environment	(10.2) Where a person disposes or proposes to dispose of a property that would, if the disposition were made and the certificates described in paragraph 110.1(1)(d) or in the definition ``total ecological gifts'' in subsection (1) were issued by the Minister of the Environment, be a gift described in those provisions, the person may request, by notice in writing to that Minister, a determination of the fair market value of the property.
Duty of Minister of the Environment	(10.3) In response to a request made under subsection (10.2), the Minister of the Environment shall with all due dispatch make a determination in accordance with subsection (12) or 110.1(5), as the case may be, of the fair market value of the property referred to in that request and give notice of the determination in writing to the person who has disposed of, or who proposes to dispose of, the property, except that no such determination shall be made if the request is received by that Minister after three years after the end of the person's taxation year in which the disposition occurred.
Ecological gifts - redetermina- tion	(10.4) Where the Minister of the Environment has, under subsection (10.3), notified a person of the amount determined by that Minister to be the fair market value of a property in respect of its disposition or proposed disposition,
	(a) that Minister shall, on receipt of a written request made by the person on or before the day that is 90 days after the day that the person was so notified of the first such determination, with all due dispatch confirm or redetermine the fair market value;
	(b) that Minister may, on that Minister's own initiative, at any time redetermine the fair market value;
	(c) that Minister shall in either case notify the person in writing of that Minister's confirmation or redetermination; and
	(d) any such redetermination is deemed to replace all preceding determinations and redeterminations of the fair market value of that property from the time at which the first such determination was made.
Certificate of Fair Market Value	(10.5) Where the Minister of the Environment determines under subsection (10.3) the fair market value of a property, or redetermines that value under subsection (10.4), and the property has been disposed of to a qualified donee described in paragraph 110.1(1)(d) or in the definition ``total ecological gifts'' in subsection (1), that Minister shall issue to the person who made the disposition a certificate that states the fair market value of the property so determined or redetermined and, where more than one certificate has been so issued, the last certificate is deemed to replace all preceding certificates from the time at which the first certificate was issued.
	(8) Subsection 118.1(11) of the Act is replaced by the following:
Assessments	(11) Notwithstanding subsections 152(4) to (5), such assessments or reassessments of a taxpayer's tax, interest or penalties payable under this Act for any taxation year shall be made as are necessary to give effect
	(a) to a certificate issued under subsection 33(1) of the Cultural Property Export and Import Act or to a decision of a court resulting from an appeal made pursuant to section 33.1 of that Act; or
	(b) to a certificate issued under subsection (10.5) or to a decision of a court resulting from an appeal made pursuant to subsection 169(1.1).
	(9) Subsection 118.1(12) of the Act is replaced by the following:
Ecological gifts	(12) For the purpose of applying subparagraph 69(1)(b)(ii), subsection 70(5), section 207.31 and this section in respect of a gift described in the definition ``total ecological gifts'' in subsection (1) that is made by a taxpayer and that is a servitude, covenant or easement to which land is subject, the greater of
	(a) the fair market value otherwise determined of the gift, and
	(b) the amount by which the fair market value of the land is reduced as a result of the making of the gift
	is deemed to be the fair market value (or, for the purpose of subsection (6), the fair market value otherwise determined) of the gift at the time the gift was made and, subject to subsection (6), to be the taxpayer's proceeds of disposition of the gift.
	(10) Subsection 118.1(12) of the Act, as enacted by subsection (9), is replaced by the following:
Ecological gifts	(12) For the purposes of applying subparagraph 69(1)(b)(ii), subsection 70(5), this section and section 207.31 in respect of a gift described in the definition ``total ecological gifts'' in subsection (1) that is made by an individual, the amount that is the fair market value (or, for the purpose of subsection (6), the fair market value otherwise determined) of the gift at the time the gift was made and, subject to subsection (6), the individual's proceeds of disposition of the gift, is deemed to be the amount determined by the Minister of the Environment to be
	(a) where the gift is land, the fair market value of the gift; or
	(b) where the gift is a servitude, covenant or easement to which land is subject, the greater of
	(i) the fair market value otherwise determined of the gift, and
	(ii) the amount by which the fair market value of the land is reduced as a result of the making of the gift.
	(11) Subsections (1), (2), (7), (8) and (10) apply in respect of gifts made, or proposed to be made, after February 27, 2000 except that subsection 118.1(2) of the Act, as enacted by subsection (2), shall be read without reference to paragraph 118.1(2)(b) in respect of gifts made before December 21, 2000.
	(12) Subject to subsection (13), subsections (3) and (4) apply in respect of deaths that occur after 1998.
	(13) For taxation years before 2000, subsection 118.1(4) of the Act, as enacted by subsection (3), shall be read without reference to subsections 118.1(7) and (7.1) of the Act except that, where a taxpayer or a taxpayer's legal representative notifies the Minister of National Revenue in writing before 2002 of the intention of the taxpayer or the taxpayer's legal representative that this subsection apply in respect of a gift made after 1996 and before 2000, subsection 118.1(4) of the Act, as enacted by subsection (3), applies to the taxation year in which the gift was made and shall be read, in respect of the 1996 to 1998 taxation years, without reference to subsections 118.1(5.2) and (5.3) of the Act.
	(14) Subsection (5) applies in respect of gifts made after February 27, 1995.
	(15) Subsection (6) applies to the 2000 and subsequent taxation years and, where a taxpayer or a taxpayer's legal representative notifies the Minister of National Revenue in writing before 2002 of the intention of the taxpayer or the taxpayer's legal representative that this subsection apply in respect of a gift made after 1996 and before 2000, subsection (6) applies to the taxation year in which the gift was made and, where paragraph 118.1(7)(d) of the Act, as enacted by subsection (6), applies, the amount designated in the notice in respect of the gift is deemed to have been validly designated for the purposes of that paragraph in the taxpayer's return of income for the year in which the gift was made.
	(16) Subsection (9) applies in respect of gifts made after February 27, 1995 and before February 28, 2000.
	95. (1) Subsection 118.2(2) of the Act is amended by adding the following after paragraph (l.2):
	(l.21) for reasonable expenses, relating to the construction of the principal place of residence of the patient who lacks normal physical development or has a severe and prolonged mobility impairment, that can reasonably be considered to be incremental costs incurred to enable the patient to gain access to, or to be mobile or functional within, the patient's principal place of residence;
	(2) Subsection (1) applies to the 2000 and subsequent taxation years.
	96. (1) The portion of subsection 118.3(1) of the French version of the Act before paragraph (a) is replaced by the following:
Crédit d'impôt pour déficience mentale ou physique	118.3 (1) Un montant est déductible dans le calcul de l'impôt payable par un particulier en vertu de la présente partie pour une année d'imposition, si les conditions suivantes sont réunies :
	(2) Paragraph 118.3(1)(a.1) of the Act is replaced by the following:
	(a.1) the effects of the impairment are such that the individual's ability to perform a basic activity of daily living is markedly restricted or would be markedly restricted but for therapy that
	(i) is essential to sustain a vital function of the individual,
	(ii) is required to be administered at least three times each week for a total duration averaging not less than 14 hours a week, and
	(iii) cannot reasonably be expected to be of significant benefit to persons who are not so impaired,
	(3) The portion of paragraph 118.3(1)(a.2) of the French version of the Act before subparagraph (i) is replaced by the following:
	a.2) l'une des personnes suivantes atteste, sur le formulaire prescrit, qu'il s'agit d'une déficience mentale ou physique grave et prolongée dont les effets sont tels que la capacité du particulier d'accomplir une activité courante de la vie quotidienne est limitée de façon marquée ou le serait en l'absence des soins thérapeutiques mentionnés à l'alinéa a.1) :
	(4) Paragraph 118.3(1)(a.2) of the Act is amended by adding the following after subparagraph (i):
	(i.1) a speech impairment, a medical doctor or a speech-language pathologist,
	(5) The portion of paragraph 118.3(1)(a.2) of the English version of the Act after subparagraph (v) is replaced by the following:
	has certified in prescribed form that the impairment is a severe and prolonged mental or physical impairment the effects of which are such that the individual's ability to perform a basic activity of daily living is markedly restricted or would be markedly restricted but for therapy referred to in paragraph (a.1),
	(6) The portion of subsection 118.3(1) of the Act after paragraph (c) is replaced by the following:
	there may be deducted in computing the individual's tax payable under this Part for the year the amount determined by the formula
	A x (B + C)
	where
	A is the appropriate percentage for the year,
	B is $6,000, and
	C is
	(a) where the individual has not attained the age of 18 years before the end of the year, the amount, if any, by which
	(i) $3,500
	exceeds
	(ii) the amount, if any, by which
	(A) the total of all amounts each of which is an amount paid in the year for the care or supervision of the individual and included in computing a deduction under section 63, 64 or 118.2 for a taxation year
	exceeds
	(B) $2,050, and
	(b) in any other case, zero.