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(8) Subsection (1) applies in respect of
taxation years that end after February 27,
2000.
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(9) Paragraphs 70(5.2)(a) and (c) of the
Act, as enacted by subsections (2) and (4),
respectively, and subsection (3) apply to
taxation years that begin after 2000.
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(10) Paragraphs 70(5.2)(a.1) and (c.1) of
the Act, as enacted by subsections (2) and
(4), respectively, apply to acquisitions that
occur after 1992.
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(11) Subsection (5) applies to dispositions
that occur after October 1, 1996.
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(12) Subsections (6) and (7) apply to
transfers and distributions from trusts that
occur after 1999.
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(13) Where a particular transfer or
distribution to a trust referred to in
subsection 70(9.1) or (9.3) of the Act, as
enacted by subsections (6) and (7),
respectively, occurred before 2001, in
applying that subsection 70(9.1) or (9.3) to
a transfer or distribution from the trust that
occurs after 1997, that subsection shall be
read without reference to the words ``or
common-law partner'' and to the
Modernization of Benefits and Obligations
Act, unless
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53. (1) Subsections 73(1) and (1.1) of the
Act are replaced by the following:
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Inter vivos
transfers by
individuals
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73. (1) For the purposes of this Part, where
at any time any particular capital property of
an individual (other than a trust) has been
transferred in circumstances to which
subsection (1.01) applies and both the
individual and the transferee are resident in
Canada at that time, unless the individual
elects in the individual's return of income
under this Part for the taxation year in which
the property was transferred that the
provisions of this subsection not apply, the
particular property is deemed
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Qualifying
transfers
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(1.01) Subject to subsection (1.02),
property is transferred by an individual in
circumstances to which this subsection
applies where it is transferred to
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Exception for
transfers
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(1.02) Subsection (1.01) applies to a
transfer of property by an individual to a trust
the terms of which satisfy the conditions in
subparagraph (1.01)(c)(ii) or (iii) only where
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Interpretation
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(1.1) For greater certainty, a property is, for
the purposes of subsections (1) and (1.01),
deemed to be property of the individual
referred to in subsection (1) that has been
transferred to a particular transferee where,
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(2) Subsection (1) applies to transfers that
occur after 1999 except that,
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54. (1) Section 74.2 of the Act is amended
by adding the following after subsection (2):
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Election for
subsection (1)
to apply
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(3) Subsection (1) does not apply to a
disposition at any particular time (in this
subsection referred to as the ``emigration
disposition'') under paragraph 128.1(4)(b), by
a taxpayer who is a recipient referred to in
subsection (1), unless the recipient and the
individual referred to in that subsection, in
their returns of income for the taxation year
that includes the first time, after the particular
time, at which the recipient disposes of the
property, jointly elect that subsection (1)
apply to the emigration disposition.
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Application of
subsection (3)
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(4) For the purpose of applying subsection
(3) and notwithstanding subsections 152(4) to
(5), any assessment of tax payable under this
Act by the recipient or the individual referred
to in subsection (1) shall be made that is
necessary to take an election under subsection
(3) into account except that no such
assessment shall affect the computation of
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(2) Subsection (1) applies after October 1,
1996.
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55. (1) The portion of subsection 75(2) of
the Act after paragraph (a) is replaced by
the following:
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any income or loss from the property or from
property substituted for the property, and any
taxable capital gain or allowable capital loss
from the disposition of the property or of
property substituted for the property, shall,
during the existence of the person while the
person is resident in Canada, be deemed to be
income or a loss, as the case may be, or a
taxable capital gain or allowable capital loss,
as the case may be, of the person.
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(2) Paragraphs 75(3)(a) and (b) of the Act
are replaced by the following:
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(3) Subsection (1) applies to taxation
years that begin after 2000.
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(4) Paragraph 75(3)(a) of the Act, as
enacted by subsection (2), applies to
taxation years that end after October 8,
1986 and, notwithstanding subsections
152(4) to (5) of the Act, the Minister of
National Revenue shall make any
assessments, reassessments and additional
assessments of tax, interest and penalties
that are necessary to give effect to the words
``retirement compensation arrangement''
in that paragraph.
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(5) Paragraph 75(3)(b) of the Act, as
enacted by subsection (2), applies to the
1999 and subsequent taxation years.
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56. (1) The Act is amended by adding the
following after section 76:
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Non-resident
moving debt
from
Canadian
business
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76.1 (1) If at any time a debt obligation of
a non-resident taxpayer that is denominated in
a foreign currency ceases to be an obligation
of the taxpayer in respect of a business or part
of a business carried on by the taxpayer in
Canada immediately before that time (other
than an obligation in respect of which the
taxpayer ceased to be indebted at that time),
for the purpose of determining the amount of
any income, loss, capital gain or capital loss
due to the fluctuation in the value of the
foreign currency relative to Canadian
currency, the taxpayer is deemed to have
settled the debt obligation immediately before
that time at the amount outstanding on
account of its principal amount.
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Non-resident
assuming debt
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(2) If at any time a debt obligation of a
non-resident taxpayer that is denominated in
a foreign currency becomes an obligation of
the taxpayer in respect of a business or part of
a business that the taxpayer carries on in
Canada after that time (other than an
obligation in respect of which the taxpayer
became indebted at that time), the amount of
any income, loss, capital gain or capital loss in
respect of the obligation due to the fluctuation
in the value of the foreign currency relative to
Canadian currency shall be determined based
on the amount of the obligation in Canadian
currency at that time.
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(2) Subsection (1) applies after June 27,
1999 in respect of an authorized foreign
bank, and after August 8, 2000 in any other
case.
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57. (1) Subsection 79.1(2) of the Act is
replaced by the following:
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Seizure of
property
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(2) Subject to subsection (2.1) and for the
purpose of this section, a property is seized at
any time by a person in respect of a debt where
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Exception
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(2.1) For the purpose of this section, foreign
resource property is deemed not to be seized
at any time from
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(2) Subsection (1) applies in respect of
property acquired or reacquired after
February 27, 2000.
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58. (1) The portion of the definition
``successor pool'' in subsection 80(1) of the
Act before paragraph (f) is replaced by the
following:
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``successor
pool'' « compte de société remplaçante »
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``successor pool'' at any time for a
commercial obligation and in respect of an
amount determined in relation to a debtor
means the portion of that amount that would
be deductible under subsection 66.7(2),
(2.3), (3), (4) or (5), as the case may be, in
computing the debtor's income for the
taxation year that includes that time, if
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(2) Paragraph 80(2)(d) of the Act is
replaced by the following:
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