``return of income'' « déclaration de revenu »	``return of income'', in respect of a person for a taxation year, means
	(a) for a person who is resident in Canada at the end of the taxation year, the person's return of income (other than a return of income under subsection 70(2) or 104(23), paragraph 128(2)(e) or subsection 150(4)) that is required to be filed for the taxation year or that would be required to be filed if the person had tax payable under this Part for the taxation year; and
	(b) in any other case, a prescribed form containing prescribed information that is filed for the taxation year with the Minister.
Persons not eligible individuals, qualified relations or qualified dependants	(2) Notwithstanding subsection (1), a person is not an eligible individual, is not a qualified relation and is not a qualified dependant, in relation to a month specified for a taxation year, if the person
	(a) died before the specified month;
	(b) is confined to a prison or similar institution for a period of at least 90 days that includes the first day of the specified month;
	(c) is at the beginning of the specified month a non-resident person, other than a non-resident person who
	(i) is at that time the cohabiting spouse or common-law partner of a person who is deemed under subsection 250(1) to be resident in Canada throughout the taxation year that includes the first day of the specified month, and
	(ii) was resident in Canada at any time before the specified month;
	(d) is at the beginning of the specified month a person described in paragraph 149(1)(a) or (b); or
	(e) is a person in respect of whom a special allowance under the Children's Special Allowances Act is payable for the specified month.
Deemed payment on account of tax	(3) An eligible individual in relation to a month specified for a taxation year who files a return of income for the taxation year and applies for an amount under this subsection is deemed to have paid during the specified month on account of their tax payable under this Part for the taxation year an amount equal to 1/4 of the amount, if any, determined by the formula
	A - B
	where
	A is the total of
	(a) $213,
	(b) $213 for the qualified relation, if any, of the individual in relation to the specified month,
	(c) if the individual has no qualified relation in relation to the specified month and is entitled to deduct an amount for the taxation year under subsection 118(1) because of paragraph (b) of the description of B in that subsection in respect of a qualified dependant of the individual in relation to the specified month, $213,
	(d) $112 times the number of qualified dependants of the individual in relation to the specified month, other than a qualified dependant in respect of whom an amount is included under paragraph (c) in computing the total for the specified month,
	(e) if the individual has no qualified relation and has one or more qualified dependants, in relation to the specified month, $112, and
	(f) if the individual has no qualified relation and no qualified dependant, in relation to the specified month, the lesser of $112 and 2% of the amount, if any, by which the individual's income for the taxation year exceeds $6,911; and
	B is 5% of the amount, if any, by which the individual's adjusted income for the taxation year in relation to the specified month exceeds $27,749.
When advance payment applies	(3.1) Subsection (3.2) applies in respect of an eligible individual in relation to a particular month specified for a taxation year, and each subsequent month specified for the taxation year, if
	(a) the amount deemed by that subsection to have been paid by the eligible individual during the particular month specified for the taxation year is less than $25; and
	(b) it is reasonable to conclude that the amount deemed by that subsection to have been paid by the eligible individual during each subsequent month specified for the taxation year will be less than $25.
Advance payment	(3.2) If this subsection applies, the total of the amounts that would otherwise be deemed by subsection (3) to have been paid on account of the eligible individual's tax payable under this Part for the taxation year during the particular month specified for the taxation year, and during each subsequent month specified for the taxation year, is deemed to have been paid by the eligible individual on account of their tax payable under this Part for the taxation year during the particular specified month for the taxation year, and the amount deemed by subsection (3) to have been paid by the eligible individual during those subsequent months specified for the taxation year is deemed, except for the purpose of this subsection, not to have been paid to the extent that it is included in an amount deemed to have been paid by this subsection.
	(2) Subsections 122.5(5) to (6) of the Act are replaced by the following:
Only one eligible individual	(5) If an individual is a qualified relation of another individual, in relation to a month specified for a taxation year, only one of them is an eligible individual in relation to that specified month, and if both of them claim to be eligible individuals, the individual that the Minister designates is the eligible individual in relation to that specified month.
Exception re qualified dependant	(6) If a person would, if this Act were read without reference to this subsection, be the qualified dependant of two or more individuals, in relation to a month specified for a taxation year,
	(a) the person is deemed to be a qualified dependant, in relation to that month, of the one of those individuals on whom those individuals agree;
	(b) in the absence of an agreement referred to in paragraph (a), the person is deemed to be, in relation to that month, a qualified dependant of the individual, if any, who is, at the beginning of that month, an eligible individual within the meaning assigned by section 122.6 in respect of the person; and
	(c) in any other case, the person is deemed to be, in relation to that month, a qualified dependant only of the individual that the Minister designates.
Notification to Minister	(6.1) An individual shall notify the Minister of the occurrence of any of the following events before the end of the month following the month in which the event occurs:
	(a) the individual ceases to be an eligible individual;
	(b) a person becomes or ceases to be the individual's qualified relation; and
	(c) a person ceases to be a qualified dependant of the individual, otherwise than because of attaining the age of 19 years.
Non-residents and part-year residents	(6.2) For the purpose of this section, the income of a person who is non-resident at any time in a taxation year is deemed to be equal to the amount that would, if the person were resident in Canada throughout the year, be the person's income for the year.
	(3) Subsections (1) and (2) apply to amounts that are deemed to be paid during months specified for the 2001 and subsequent taxation years.
	39. (1) Subclause 126(1)(b)(ii)(A)(III) of the Act is replaced by the following:
	(III) the total of all amounts each of which is an amount deducted under section 110.6 or paragraph 111(1)(b), or deductible under any of paragraphs 110(1)(d) to (d.3), (f), (g) and (j) and sections 112 and 113, in computing the taxpayer's taxable income for the year, and
	(2) Subclause 126(2.1)(a)(ii)(A)(III) of the Act is replaced by the following:
	(III) the total of all amounts each of which is an amount deducted under section 110.6 or paragraph 111(1)(b), or deductible under any of paragraphs 110(1)(d) to (d.3), (f), (g) and (j) and sections 112 and 113, in computing the taxpayer's taxable income for the year, and
	(3) Subparagraph 126(3)(b)(iii) of the Act is replaced by the following:
	(iii) the total of all amounts each of which is an amount deducted under section 110.6 or paragraph 111(1)(b), or deductible under any of paragraphs 110(1)(d) to (d.3), (f), (g) and (j), in computing the taxpayer's taxable income for the year,
	(4) Subsections (1) to (3) apply to the 1997 and subsequent taxation years except that, for the 1997 taxation year
	(a) subclause 126(1)(b)(ii)(A)(III) of the Act, as enacted by subsection (1), shall be read as follows:
	(III) the total of all amounts each of which is an amount deducted by the taxpayer under section 110.6 or paragraph 111(1)(b), or deductible by the taxpayer under paragraph 110(1)(d), (d.1), (d.2), (d.3), (f), (g) or (j) or section 112 or 113, for the year or in respect of the period or periods referred to in subclause (II), as the case may be, and
	(b) subclause 126(2.1)(a)(ii)(A)(III) of the Act, as enacted by subsection (2), shall be read as follows:
	(III) the total of all amounts each of which is an amount deducted by the taxpayer under section 110.6 or paragraph 111(1)(b), or deductible by the taxpayer under paragraph 110(1)(d), (d.1), (d.2), (d.3), (f), (g) or (j) or section 112 or 113, for the year or in respect of the period or periods referred to in subclause (II), as the case may be, and
	and
	(c) subparagraph 126(3)(b)(iii) of the Act, as enacted by subsection (3), shall be read as follows:
	(iii) the total of all amounts each of which is an amount deducted under section 110.6 or paragraph 111(1)(b), or deductible under paragraph 110(1)(d), (d.1), (d.2), (d.3), (f), (g) or (j), in computing the individual's taxable income for the year or in respect of the period or periods referred to in subparagraph (ii), as the case may be,
	(5) Notwithstanding subsections 152(4) to (5) of the Act, any assessment of a taxpayer's tax, interest or penalty for any taxation year shall be made that is necessary to give effect to any of subsections (1) to (4).
	40. (1) Paragraph 127.52(1)(h) of the Act is amended by striking out the word ``and'' at the end of subparagraph (iv), by adding the word ``and'' at the end of subparagraph (v) and by adding the following after subparagraph (v):
	(vi) the amount deducted under paragraph 110(1)(g);
	(2) Subsection (1) applies to the 1997 and subsequent taxation years and, notwithstanding subsections 152(4) to (5) of the Act, any assessment of a taxpayer's tax, interest or penalty for any taxation year shall be made that is necessary to give effect to subsection (1).
	41. (1) Paragraph 157(1)(b) of the Act is replaced by the following:
	(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 on or before its balance-due day for the year.
	(2) Subsection (1) applies to taxation years that end after 2001.
	42. (1) The Act is amended by adding the following after section 157:
Instalment deferral for January, February and March 2002 - definitions	157.1 (1) The following definitions apply in this section.
``eligible corporation'' « société admissible »	``eligible corporation'', for a particular taxation year, means a corporation
	(a) that is resident in Canada throughout the particular taxation year; and
	(b) of which the taxable capital employed in Canada, within the meaning assigned by Part I.3, for its preceding taxation year did not exceed,
	(i) if the corporation is not associated with any other corporation in the particular taxation year, $15 million, and
	(ii) if the corporation is associated with one or more other corporations in the particular taxation year, the amount by which $15 million exceeds the total of the taxable capital employed in Canada, within the meaning assigned by Part I.3, of those other corporations for their last taxation years that ended in the last calendar year that ended before the end of the particular taxation year.
``eligible instalment day'' « jour admissible »	``eligible instalment day'' of an eligible corporation means a day in January, February or March, 2002, on which an instalment on account of the corporation's tax payable under this Part for the taxation year that includes that day would become payable
	(a) if this Act were read without reference to this section; and
	(b) if, in the case of a corporation that is not required by section 157 to make instalment payments on account of its tax payable under this Part for the taxation year, it were so required.
Deferred balance-due day	(2) An eligible corporation's balance-due day for a taxation year that ends after 2001 is deemed to be the later of
	(a) the day that would otherwise be the corporation's balance-due day for the taxation year, and
	(b) the day that is six months after the corporation's last eligible instalment day in the taxation year.
Deferred instalment day	(3) An amount that would, because of paragraph 157(1)(a), otherwise become payable in respect of a taxation year by an eligible corporation on an eligible instalment day of the corporation does not become payable on that day but becomes payable
	(a) if the particular day that is six months after the eligible instalment day is in the taxation year, on the particular day; and
	(b) in any other case, on the day that is deemed by subsection (2) to be the corporation's balance-due day for the taxation year.
	(2) Subsection (1) applies to taxation years that end after 2001.
	43. (1) Subsection 160.1(1.1) of the Act is replaced by the following:
Liability for refund by reason of s. 122.5	(1.1) If a person is a qualified relation of an individual (within the meaning assigned by subsection 122.5(1)), in relation to one or more months specified for a taxation year, the person and the individual are jointly and severally, or solidarily, liable to pay the lesser of
	(a) any excess described in subsection (1) that was refunded in respect of the taxation year to, or applied to a liability of, the individual as a consequence of the operation of section 122.5, and
	(b) the total of the amounts deemed by subsection 122.5(3) to have been paid by the individual during those specified months.
Liability under other provisions	(2) Subsection (1.1) does not limit a person's liability under any other provision of this Act.
	(2) Subsection (1) applies to amounts deemed to be paid during months specified for the 2001 and subsequent taxation years.
	44. (1) Paragraph (d) of the definition ``balance-due day'' in subsection 248(1) of the Act is replaced by the following:
	(d) where the taxpayer is a corporation,
	(i) the day that is three months after the day on which the taxation year (in this subparagraph referred to as the ``current year'') ends, if
	(A) an amount was deducted under section 125 in computing the corporation's tax payable under this Part for the current year or for its preceding taxation year,
	(B) the corporation is, throughout the current year, a Canadian-controlled private corporation, and
	(C) either