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(2) The portion of paragraph 87(2)(oo.1)
of the Act before subparagraph (i) is
replaced by the following:
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Refundable
investment tax
credit and
balance-due
day
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(3) Subsections (1) and (2) apply to
taxation years that end after 2001.
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31. (1) The portion of paragraph
88(1)(e.9) of the Act before subparagraph
(i) is replaced by the following:
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(2) Subsection (1) applies to taxation
years that end after 2001.
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32. (1) Section 97 of the Act is amended by
adding the following after subsection (4):
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Acquisition of
apprentice
tools, re
capital cost
and deemed
depreciation
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(5) If subsection (2) has applied in respect
of the acquisition at any particular time of any
depreciable property by a partnership from an
individual, the cost of the property to the
individual was included in computing an
amount under paragraph 8(1)(r) in respect of
the individual, and the amount that would be
the cost of the property to the individual
immediately before the transfer if this Act
were read without reference to subsection 8(7)
(which amount is in this subsection referred to
as the ``individual's original cost'') exceeds
the individual's proceeds of disposition of the
property,
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(2) Subsection (1) applies to dispositions
that occur after 2001.
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33. (1) Subparagraph 110(1)(d.01)(ii) of
the Act is repealed.
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(2) Subsection 110(1) of the Act is
amended by adding the following after
paragraph (f):
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Financial
assistance
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(3) Subsection (1) applies to dispositions
that occur after 2001.
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(4) Paragraph 110(1)(g) of the Act, as
enacted by subsection (2), 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 that paragraph.
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34. (1) The description of E in the
definition ``non-capital loss'' in subsection
111(8) of the Act is replaced by the
following:
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E is the total of all amounts each of which is
the taxpayer's loss for the year from an office,
employment, business or property, the
taxpayer's allowable business investment loss
for the year, an amount deducted under
paragraph (1)(b) or section 110.6 in
computing the taxpayer's taxable income for
the year or an amount that may be deducted
under any of paragraphs 110(1)(d) to (d.3), (f),
(g), (j) and (k), section 112 and subsections
113(1) and 138(6) in computing the taxpayer's
taxable income for the year, and
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(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).
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35. (1) The definition ``qualified
non-resident'' in subsection 115.2(1) of the
Act is repealed.
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(2) The definitions ``designated
investment services'' and ``promoter'' in
subsection 115.2(1) of the Act are replaced
by the following:
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``designated
investment
services'' « services de placement déterminés »
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``designated investment services'' provided to
a person or partnership means any one or
more of the services described in the
following paragraphs:
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``promoter'' « promoteur »
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``promoter'' of a corporation, trust or
partnership means a particular person or
partnership that initiates or directs the
founding, organization or substantial
reorganization of the corporation, trust or
partnership, and a person or partnership that
is affiliated with the particular person or
partnership.
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(3) The portion of the definition
``qualified investment'' in subsection
115.2(1) of the Act before subparagraph
(a)(ii) is replaced by the following:
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``qualified
investment'' « placement admissible »
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``qualified investment'' of a person or
partnership means
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(4) Subsection 115.2(1) of the Act is
amended by adding the following in
alphabetical order:
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``Canadian
investor'' « investisseur canadien »
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``Canadian investor'', at any time in respect of
a non-resident person, means a person that
the non-resident person knows, or ought to
know after reasonable inquiry, is at that
time resident in Canada.
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(5) Subsection 115.2(2) of the Act is
replaced by the following:
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Not carrying
on business in
Canada
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(2) For the purposes of subsection 115(1)
and Part XIV, a non-resident person is not
considered to be carrying on business in
Canada at any particular time solely because
of the provision to the person, or to a
partnership of which the person is a member,
at the particular time of designated investment
services by a Canadian service provider if
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(6) Subsection 115.2(4) of the Act is
replaced by the following:
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Transfer
pricing
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(4) For the purpose of section 247, where
subsection (2) applies in respect of services
provided to a person that is a corporation or
trust or to a partnership, if the Canadian
service provider referred to in that subsection
does not deal at arm's length with the
promoter of the person or of the partnership,
the service provider is deemed not to deal at
arm's length with the person or partnership.
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(7) Subsections (1) to (3) and (5) and (6)
apply to the 2002 and subsequent taxation
years.
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(8) Subsection (4) applies to the 1999 and
subsequent taxation years except that, in
applying the definition ``Canadian
investor'', as enacted by that subsection, to
taxation years that end after 1998 and
before 2002, that definition shall be read as
follows:
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``Canadian investor'', at any time in respect of
a qualified non-resident, means
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(9) In applying subparagraph
115.2(2)(b)(i) of the Act, as enacted by
subsection 21(1) of the Income Tax
Amendments Act, 1999, chapter 19 of the
Statutes of Canada, 2000, to taxation years
that end after 1998 and before 2002, that
subparagraph shall be read as follows:
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36. (1) Paragraph (a) of the definition
``qualifying educational program'' in
subsection 118.6(1) of the Act is amended by
striking out the word ``or'' at the end of
subparagraph (i) and by adding the
following after subparagraph (ii):
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(2) Subsection (1) applies to the 2002 and
subsequent taxation years.
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37. (1) Subparagraph 122.3(1)(e)(iii) of
the Act is replaced by the following:
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(2) Subsection (1) applies to the 1997 and
subsequent taxation years except that, for
the 1997 taxation year, subparagraph
122.3(1)(e)(iii) of the Act, as enacted by
subsection (1), shall be read as follows:
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(3) 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) or
(2).
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38. (1) Subsections 122.5(1) to (3.1) of the
Act are replaced by the following:
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Definitions
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122.5 (1) The following definitions apply in
this section.
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``adjusted
income'' « revenu rajusté »
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``adjusted income'' of an individual, for a
taxation year in relation to a month
specified for the taxation year, means the
total of the individual's income for the
taxation year and the income for the
taxation year of the individual's qualified
relation, if any, in relation to the specified
month, both calculated as if no amount were
included in respect of any gain from a
disposition of property to which section 79
applies.
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``cohabiting
spouse or
common-law
partner'' « époux ou conjoint de fait visé »
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``cohabiting spouse or common-law partner''
of an individual at any time has the meaning
assigned by section 122.6.
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``eligible
individual'' « particulier admissible »
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``eligible individual'', in relation to a month
specified for a taxation year, means an
individual (other than a trust) who
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``qualified
dependant'' « personne à charge admissible »
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``qualified dependant'' of an individual, in
relation to a month specified for a taxation
year, means a person who at the beginning
of the specified month
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``qualified
relation'' « proche admissible »
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``qualified relation'' of an individual, in
relation to a month specified for a taxation
year, means the person, if any, who, at the
beginning of the specified month, is the
individual's cohabiting spouse or
common-law partner.
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