(c) a right of the individual under an agreement referred to in subsection 7(1);

      (d) a right of the individual to a retiring allowance;

      (e) a right of the individual under, or an interest of the individual in, a trust that is

        (i) an employee trust,

        (ii) an amateur athlete trust,

        (iii) a cemetery care trust, or

        (iv) a trust governed by an eligible funeral arrangement;

      (f) a right of the individual to receive a payment under

        (i) an annuity contract, or

        (ii) an income-averaging annuity contract;

      (g) a right of the individual to a benefit under

        (i) the Canada Pension Plan or a provincial plan described in section 3 of that Act,

        (ii) the Old Age Security Act,

        (iii) a provincial pension plan prescribed for the purpose of paragraph 60(v), or

        (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;

      (h) a right of the individual to a benefit described in any of subparagraphs 56(1)(a)(iii) to (vi);

      (i) a right of the individual to a payment out of a NISA Fund No. 2;

      (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));

      (k) an interest of the individual in a non-resident testamentary trust if the interest was never acquired for consideration; or

      (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.

``reportable property'' « bien à déclarer »

``reportable property'' of an individual at a particular time means any property other than

      (a) money that is legal tender in Canada and deposits of such money;

      (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;

      (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

      (d) any item of personal-use property the fair market value of which, at the particular time, is less than $10,000.

(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

    (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

    (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.

(7) Paragraph 128.1(4)(d.1) of the Act, as enacted by subsection (4), applies to changes in residence that occur after 1992.

(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.

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.

(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.

125. (1) The Act is amended by adding the following after section 128.2:

Former resident - replaced shares

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.

(2) Subsection (1) applies after October 1, 1996.

126. (1) Section 129 of the Act is amended by adding the following after subsection (3):

Application

(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

    (a) disposed of before November 13, 1981,

    (b) was obligated to dispose of under the terms of an agreement in writing entered into before November 13, 1981, or

    (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,

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.

(2) Subsection (1) applies to taxation years that end after June 1995 and before 2003.

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''.

(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''.

(3) Paragraph 130.1(4)(b) of the Act is replaced by the following:

    (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

      (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,

      (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,

      (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,

      (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,

      (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,

      (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,

      (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

      (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.

(4) Section 130.1 of the Act is amended by adding the following after subsection (4.1):

Reporting

(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

    (a) before February 28, 2000,

    (b) after February 27, 2000 and before October 18, 2000, and

    (c) after October 17, 2000

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.

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:

    (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,

    (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,

    (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

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.

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:

    (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;

    (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

    (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.

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

    (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,

    (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

    (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,

and, for the purpose of this subsection,

    (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

    (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.

(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,

    (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

    (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''.

128. (1) Paragraph 131(1)(b) of the Act is replaced by the following:

    (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

      (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,