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(ii) the donee was neither a policyholder
under the policy, nor an assignee of the
individual's interest under the policy;
and
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(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).
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| Deemed
gift -
subsection
(5.1)
|
(5.2) Where this subsection applies,
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(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
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(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).
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| 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),
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(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
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(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).
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(5) The portion of subsection 118.1(6) of
the Act after paragraph (b) is replaced by
the following:
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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.
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(6) Subsections 118.1(7) and (7.1) of the
Act are replaced by the following:
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| 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
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(a) created by the individual and that is
property in the individual's inventory, or
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(b) acquired under circumstances where
subsection 70(3) applied,
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and at that time the fair market value of the
work of art exceeds its cost amount to the
individual, the following rules apply:
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(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
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(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.
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| 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
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(a) created by the individual and that is
property in the individual's inventory, or
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(b) acquired under circumstances where
subsection 70(3) applied,
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and at that time the fair market value of the
work of art exceeds its cost amount to the
individual, the following rules apply:
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(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
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(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.
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(7) Subsection 118.1(10.1) of the Act is
replaced by the following:
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| Determination
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.
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| Request for
determination
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.
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| 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.
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| Ecological
gifts -
redeterminatio
n
|
(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,
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(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;
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(b) that Minister may, on that Minister's
own initiative, at any time redetermine the
fair market value;
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(c) that Minister shall in either case notify
the person in writing of that Minister's
confirmation or redetermination; and
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(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.
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| 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.
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(8) Subsection 118.1(11) of the Act is
replaced by the following:
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| 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
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(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
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(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).
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|
(9) Subsection 118.1(12) of the Act is
replaced by the following:
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|
| 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
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(a) the fair market value otherwise
determined of the gift, and
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(b) the amount by which the fair market
value of the land is reduced as a result of the
making of the gift
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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.
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|
(10) Subsection 118.1(12) of the Act, as
enacted by subsection (9), is replaced by the
following:
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|
| 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
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(a) where the gift is land, the fair market
value of the gift; or
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(b) where the gift is a servitude, covenant or
easement to which land is subject, the
greater of
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(i) the fair market value otherwise
determined of the gift, and
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(ii) the amount by which the fair market
value of the land is reduced as a result of
the making of the gift.
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(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.
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(12) Subject to subsection (13),
subsections (3) and (4) apply in respect of
deaths that occur after 1998.
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(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.
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(14) Subsection (5) applies in respect of
gifts made after February 27, 1995.
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(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.
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(16) Subsection (9) applies in respect of
gifts made after February 27, 1995 and
before February 28, 2000.
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|
95. (1) Subsection 118.2(2) of the Act is
amended by adding the following after
paragraph (l.2):
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(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;
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(2) Subsection (1) applies to the 2000 and
subsequent taxation years.
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96. (1) The portion of subsection 118.3(1)
of the French version of the Act before
paragraph (a) is replaced by the following:
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| 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 :
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(2) Paragraph 118.3(1)(a.1) of the Act is
replaced by the following:
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(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
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(i) is essential to sustain a vital function
of the individual,
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(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
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(iii) cannot reasonably be expected to be
of significant benefit to persons who are
not so impaired,
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|
(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:
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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) :
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(4) Paragraph 118.3(1)(a.2) of the Act is
amended by adding the following after
subparagraph (i):
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(i.1) a speech impairment, a medical
doctor or a speech-language pathologist,
|
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|
(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:
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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),
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(6) The portion of subsection 118.3(1) of
the Act after paragraph (c) is replaced by
the following:
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there may be deducted in computing the
individual's tax payable under this Part for the
year the amount determined by the formula
|
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A x (B + C)
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where
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A is the appropriate percentage for the year,
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B is $6,000, and
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C is
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(a) where the individual has not attained
the age of 18 years before the end of the
year, the amount, if any, by which
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(ii) the amount, if any, by which
|
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(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
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(b) in any other case, zero.
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