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(8) In respect of
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(a) a deduction under section 119 of the
Act, as enacted by subsection 102(2), or
an adjustment under subsection 128.1(8)
of the Act, as enacted by subsection
123(5), in respect of a disposition by a
taxpayer, or
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(b) a deduction under subsection
126(2.21) or (2.22) of the Act, as enacted
by subsection 117(6), in respect of foreign
taxes paid by a taxpayer,
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the taxpayer is deemed to have filed the
prescribed form described in subsection
152(6) of the Act in a timely manner if the
taxpayer files the form with the Minister of
National Revenue on or before the later of
the day on or before which the taxpayer
would, but for this subsection, be required
to file the form and the taxpayer's
filing-due date for the taxation year that
includes the day on which this Act receives
royal assent.
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(9) Subsection (4) applies to taxation
years of foreign affiliates that begin after
November 1999.
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150. (1) Subsection (2) applies in respect
of an individual if, at any particular time
after October 1, 1996 and before the day
that is two years before the day on which
this Act receives royal assent,
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(a) the individual ceased to be resident in
Canada; or
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(b) where the individual is a trust, the
trust made a distribution of property to
which subsection 107(2) of the Act does
not apply solely because of the
application of subsection 107(5) of the
Act, as enacted by subsection 80(18).
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(2) Where this subsection applies in
respect of an individual, for the purposes of
any reassessment of the individual's tax,
interest or penalties, for any year, that is
necessary to take into account the
application of this Act in respect of the
cessation of residence or the distribution
referred to in subsection (1), the
individual's normal reassessment period
under subsection 152(3.1) of the Act for any
taxation year that ends at or after the
particular time described in subsection (1)
is, notwithstanding subsection 152(3.1) of
the Act, deemed to end on the later of
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(a) the day on which the normal
reassessment period for the year would,
but for this section, end; and
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(b) the day that is one year after the day
on which this Act receives royal assent.
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151. (1) Paragraph 153(1)(a) of the Act is
replaced by the following:
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(a) salary, wages or other remuneration,
other than amounts described in subsection
212(5.1),
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(2) Paragraph 153(1)(g) of the Act is
replaced by the following:
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(g) fees, commissions or other amounts for
services, other than amounts described in
subsection 212(5.1),
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(3) The portion of subsection 153(1) of the
Act after paragraph (t) is replaced by the
following:
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shall deduct or withhold from the payment the
amount determined in accordance with
prescribed rules and shall, at the prescribed
time, remit that amount to the Receiver
General on account of the payee's tax for the
year under this Part or Part XI.3, as the case
may be, and, where at that prescribed time the
person is a prescribed person, the remittance
shall be made to the account of the Receiver
General at a designated financial institution.
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(4) Section 153 of the Act is amended by
adding the following after subsection (5):
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| Meaning of
``designated
financial
institution''
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(6) In this section, ``designated financial
institution'' means a corporation that
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(a) is a bank, other than an authorized
foreign bank that is subject to the
restrictions and requirements referred to in
subsection 524(2) of the Bank Act;
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(b) is authorized under the laws of Canada
or a province to carry on the business of
offering its services as a trustee to the
public; or
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(c) is authorized under the laws of Canada
or a province to accept deposits from the
public and carries on the business of lending
money on the security of real estate or
investing in mortgages or hypothecs on real
estate.
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(5) Subsections (1) and (2) apply in
respect of amounts paid, credited or
provided after 2000.
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(6) Subsections (3) and (4) apply after
June 27, 1999.
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152. (1) The description of A in
paragraph (b) of the definition ``net tax
owing'' in subsection 156.1(1) of the Act is
replaced by the following:
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A is the total of the taxes payable under
this Part and Parts I.2 and X.5 by the
individual for the year,
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(2) Subsection (1) applies to the 2001 and
subsequent taxation years.
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153. (1) Subparagraph 157(1)(a)(i) of the
Act is replaced by the following:
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(i) on or before the last day of each month
in the year, an amount equal to 1/12 of the
total of the amounts estimated by it to be
the taxes payable by it under this Part and
Parts I.3, VI, VI.1 and XIII.1 for the year,
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(2) The portion of paragraph 157(1)(b) of
the Act before subparagraph (i) is replaced
by the following:
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(b) the remainder of the taxes payable by it
under this Part and Parts I.3, VI, VI.1 and
XIII.1 for the year
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(3) Subsection 157(2.1) of the Act is
replaced by the following:
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| $1,000
threshold
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(2.1) Where
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(a) the total of the taxes payable under this
Part and Parts I.3, VI, VI.1 and XIII.1 by a
corporation for a taxation year (determined
before taking into consideration the
specified future tax consequences for the
year), or
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(b) the corporation's first instalment base
for the year,
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is not more than $1,000, the corporation may,
instead of paying the instalments required for
the year by paragraph (1)(a), pay to the
Receiver General, under paragraph (1)(b), the
total of the taxes payable by it under this Part
and Parts I.3, VI, VI.1 and XIII.1 for the year.
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(4) Subsections (1) to (3) apply to the 2001
and subsequent taxation years.
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154. (1) Subsections 159(4) and (4.1) of
the Act are repealed.
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(2) Subsection 159(6.1) of the Act is
replaced by the following:
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| Election
where
subsection
104(4)
applicable
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(6.1) Where a time determined under
paragraph 104(4)(a), (a.1), (a.2), (a.3), (a.4),
(b) or (c) in respect of a trust occurs in a
taxation year of the trust and the trust so elects
and furnishes to the Minister security
acceptable to the Minister for payment of any
tax the payment of which is deferred by the
election, notwithstanding any other provision
of this Part respecting the time within which
payment shall be made of the tax payable
under this Part by the trust for the year, all or
any portion of the part of that tax that is equal
to the amount, if any, by which that tax
exceeds the amount that that tax would be if
this Act were read without reference to
paragraph 104(4)(a), (a.1), (a.2), (a.3), (a.4),
(b) or (c), as the case may be, may be paid in
the number (not exceeding 10) of equal
consecutive annual instalments that is
specified by the trust in the election, the first
instalment of which shall be paid on or before
the day on or before which payment of that tax
would, but for the election, have been required
to be made and each subsequent instalment of
which shall be paid on or before the next
following anniversary of that day.
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(3) Subsection (1) applies to individuals
who cease to be resident in Canada after
October 1, 1996.
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(4) Subsection (2) applies to the 2000 and
subsequent taxation years.
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155. (1) Paragraph 161(7)(a) of the Act is
amended by adding the following before
subparagraph (ii):
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(i) any amount deducted under section
119 in respect of a disposition in a
subsequent taxation year,
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(2) Subparagraph 161(7)(a)(iv.1) of the
Act is replaced by the following:
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(iv.1) any amount deducted under
subsection 126(2) in respect of an unused
foreign tax credit (within the meaning
assigned by subsection 126(7)), or under
subsection 126(2.21) or (2.22) in respect
of foreign taxes paid, for a subsequent
taxation year,
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(3) Paragraph 161(7)(a) of the Act is
amended by striking out the word ``and'' at
the end of subparagraph (ix) and by adding
the following after subparagraph (x):
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(xi) any amount deducted under any of
subsections 128.1(6) to (8) from the
taxpayer's proceeds of disposition of a
property because of an election made in
a return of income for a subsequent
taxation year; and
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(4) Subsections (1) to (3) apply to taxation
years that end after October 1, 1996.
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156. (1) Paragraphs 164(1)(a) and (b) of
the Act are replaced by the following:
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(i) before mailing the notice of
assessment for the year, where the
taxpayer is a qualifying corporation (as
defined in subsection 127.1(2)) and
claims in its return of income for the year
to have paid an amount on account of its
tax payable under this Part for the year
because of subsection 127.1(1) in respect
of its refundable investment tax credit (as
defined in subsection 127.1(2)), refund
all or part of any amount claimed in the
return as an overpayment for the year, not
exceeding the amount by which the total
determined under paragraph (f) of the
definition ``refundable investment tax
credit'' in subsection 127.1(2) in respect
of the taxpayer for the year exceeds the
total determined under paragraph (g) of
that definition in respect of the taxpayer
for the year,
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(ii) before mailing the notice of
assessment for the year, where the
taxpayer is a qualified corporation (as
defined in subsection 125.4(1)) or an
eligible production corporation (as
defined in subsection 125.5(1)) and an
amount is deemed under subsection
125.4(3) or 125.5(3) to have been paid on
account of its tax payable under this Part
for the year, refund all or part of any
amount claimed in the return as an
overpayment for the year, not exceeding
the total of those amounts so deemed to
have been paid, and
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(iii) on or after mailing the notice of
assessment for the year, refund any
overpayment for the year, to the extent
that the overpayment was not refunded
pursuant to subparagraph (i) or (ii); and
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(b) shall, with all due dispatch, make the
refund referred to in subparagraph (a)(iii)
after mailing the notice of assessment if
application for it is made in writing by the
taxpayer within the period within which the
Minister would be allowed under
subsection 152(4) to assess tax payable
under this Part by the taxpayer for the year
if that subsection were read without
reference to paragraph 152(4)(a).
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(2) Subsection 164(5) of the Act is
amended by adding the following after
paragraph (a):
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(a.1) any amount deducted under section
119 in respect of the disposition of a taxable
Canadian property in a subsequent taxation
year,
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(3) Paragraph 164(5)(e) of the Act is
replaced by the following:
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(e) the deduction of an amount under
subsection 126(2) in respect of an unused
foreign tax credit (within the meaning
assigned by subsection 126(7)), or under
subsection 126(2.21) or (2.22) in respect of
foreign taxes paid, for a subsequent taxation
year,
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(4) Subsection 164(5) of the Act is
amended by adding the following after
paragraph (h.01):
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(h.02) the deduction under any of
subsections 128.1(6) to (8) of an amount
from the taxpayer's proceeds of disposition
of a property, because of an election made
in a return of income for a subsequent
taxation year,
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(5) Subsection 164(5.1) of the Act is
replaced by the following:
|
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| Interest -
disputed
amounts
|
(5.1) Where a portion of a repayment made
under subsection (1.1) or (4.1), or an amount
applied under subsection (2) in respect of a
repayment, can reasonably be regarded as
being in respect of a claim made by the
taxpayer in an objection to or appeal from an
assessment of tax for a taxation year for a
deduction or exclusion described in
subsection (5) in respect of a subsequent
taxation year, interest shall not be paid or
applied on the portion for any part of a period
that is before the latest of the dates described
in paragraphs (5)(i) to (l).
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(6) Subparagraph 164(6.1)(a)(iii) of the
Act is amended by replacing the reference
to the fraction ``1/4'' with a reference to the
fraction ``1/2''.
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(7) Subsection (1) applies to the 1999 and
subsequent taxation years.
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(8) Subsections (2) to (5) apply to taxation
years that end after October 1, 1996.
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(9) Subsection (6) applies to deaths that
occur after February 27, 2000 except that,
for deaths that occurred after February 27,
2000 and before October 18, 2000, the
reference to the fraction ``1/2'' in
subparagraph 164(6.1)(a)(iii) of the Act, as
enacted by subsection (6), shall be read as a
reference to the fraction ``1/3''.
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157. (1) Subsection 165(2.1) of the Act is
replaced by the following:
|
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| Application
|
(2.1) Notwithstanding any other provision
of this Act, paragraph (1)(a) shall apply only
in respect of assessments, determinations and
redeterminations under this Part and Part I.2.
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(2) Subsection (1) applies to the 2001 and
subsequent taxation years.
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|
158. (1) Section 169 of the Act is amended
by adding the following after subsection (1):
|
|
| Ecological
gifts
|
(1.1) Where at any particular time a
taxpayer has disposed of a property, the fair
market value of which has been confirmed or
redetermined by the Minister of the
Environment under subsection 118.1(10.4),
the taxpayer may, within 90 days after the day
on which that Minister has issued a certificate
under subsection 118.1(10.5), appeal the
confirmation or redetermination to the Tax
Court of Canada.
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(2) Subsection (1) applies in respect of
gifts made after February 27, 2000 except
that, where a certificate has been issued
under subsection 118.1(10.5) of the Act, as
enacted by subsection 94(7), before this Act
receives royal assent, subsection 169(1.1) of
the Act, as enacted by subsection (1), shall
be read as follows:
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(1.1) Where at any particular time a
taxpayer has disposed of a property, the fair
market value of which has been confirmed or
redetermined by the Minister of the
Environment under subsection 118.1(10.4),
the taxpayer may, within 90 days after the day
on which the Income Tax Amendments Act,
2000 receives royal assent, appeal the
confirmation or redetermination to the Tax
Court of Canada.
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|
159. (1) Section 171 of the Act is amended
by adding the following after subsection (1):
|
|
| Ecological
gifts
|
(1.1) On an appeal under subsection
169(1.1), the Tax Court of Canada may
confirm or vary the amount determined to be
the fair market value of a property and the
value determined by the Court is deemed to be
the fair market value of the property
determined by the Minister of the
Environment.
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(2) Subsection (1) applies in respect of
gifts made after February 27, 2000.
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|
160. (1) Subsection 180.1(1) of the Act is
replaced by the following:
|
|
| Individual
surtax
|
180.1 (1) Every individual shall pay a tax
under this Part for each taxation year equal to
5% of the amount, if any, by which the tax
payable under Part I by the individual for the
year exceeds $15,500.
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(2) Subsection 180.1(2) of the Act is
replaced by the following:
|
|
| Former
resident credit
for tax paid
|
(1.4) There may be deducted from the tax
otherwise payable under this Part by an
individual for a taxation year (computed
without reference to subsections (1.1) and
(1.2)) the amount, if any, by which
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(a) the amount that would be deductible
under section 119 in computing the
individual's tax payable under Part I for the
year if, in applying for that purpose
paragraph (a) of the definition ``tax for the
year otherwise payable under this Part'' in
subsection 126(7), the reference in that
paragraph to ``tax payable under this Part
for the year'' were read as a reference to
``the total of taxes that, but for subsections
180.1(1.1), (1.2) and (1.4), would be
payable under this Part and Part I.1 for the
year''
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exceeds
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|
(b) the amount deductible under section 119
in computing the individual's tax payable
under Part I for the year.
|
|
| Meaning of
tax payable
under Part I
|
(2) For the purposes of subsection (1), the
tax payable under Part I by an individual for a
taxation year is the amount, if any, by which
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(a) the amount that would be the
individual's tax payable under that Part for
the year if that Part were read without
reference to section 119, subsection 120(1)
and sections 122.3, 126, 127, 127.4 and
127.54
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