Bill C-59
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42-43-44 ELIZABETH II |
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CHAPTER 3 |
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An Act to amend the Income Tax Act and the
Income Tax Application Rules
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[Assented to 26th March, 1995]
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PART I |
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R.S., c. 1 (5th
Supp.); 1994,
cc. 7, 8, 13,
21, 28, 29
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INCOME TAX ACT |
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1. (1) Subsection 6(4) of the Income Tax
Act is replaced by the following:
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Group term
life insurance
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(4) Notwithstanding any exception
provided for in paragraph (1)(a), there shall be
included in computing a taxpayer's income
for a taxation year as income from an office or
employment the premium in respect of any
period in the year before July 1994 for any
excess over $25,000 of the amount of life
insurance (other than prescribed insurance) in
effect on the taxpayer's life during that period
under a group term life insurance policy under
which any life insurance was effected on the
taxpayer's life in respect of, in the course of or
because of, the taxpayer's office or
employment or former office or employment,
determined as the remainder obtained by
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and in the case of a taxpayer on whose life any
life insurance was in effect during any period
in the year before July 1994 under more than
one such group insurance policy,
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(2) Subsection 6(4) of the Act is replaced
by the following:
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Group term
life insurance
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(4) Where at any time in a taxation year a
taxpayer's life is insured under a group term
life insurance policy, there shall be included in
computing the taxpayer's income for the year
from an office or employment the amount, if
any, prescribed for the year in respect of the
insurance.
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(3) Subsection 6(5) of the Act is repealed.
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(4) Subsection (1) applies to insurance
provided in respect of periods that are in
1994 and before July 1994.
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(5) Subsection (2) applies to insurance
provided in respect of periods that are after
June 1994.
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(6) Subsection (3) applies to the 1995 and
subsequent taxation years.
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2. (1) Subsection 12(1) of the Act is
amended by striking out the word ``and'' at
the end of paragraph (y) and by adding the
following after paragraph (z):
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Mining
reclamation
trusts
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Dispositions
of interests in
mining
reclamation
trusts
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(2) Subsection (1) applies to taxation
years that end after February 22, 1994.
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3. (1) Section 12.3 of the Act is replaced by
the following:
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Transition
inclusion re
unpaid claims
reserve
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12.3 Where an amount has been deducted
under subsection 20(26) in computing the
income of an insurer for its taxation year that
includes February 23, 1994, there shall be
included in computing the insurer's income
for that taxation year and each subsequent
taxation year that begins before 2004, the
prescribed portion for the year of the amount
so deducted.
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(2) Subsection (1) applies to taxation
years that end after February 22, 1994.
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4. (1) Clause 13(7)(e)(i)(B) of the Act is
amended by striking out the word ``and'' at
the end of subclause (II), by adding the
word ``and'' at the end of subclause (III)
and by adding the following after subclause
(III):
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(2) Subsection 13(7) of the Act is amended
by adding the following after
paragraph (e):
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(3) Section 13 of the Act is amended by
adding the following after subsection (18):
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Ascertainment
of certain
property
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(18.1) For the purpose of determining
whether property meets the criteria set out in
the Regulations in respect of prescribed
energy conservation property, the Technical
Guide to Class 43.1, as amended from time to
time and published by the Department of
Energy, Mines and Resources, shall apply
conclusively with respect to engineering and
scientific matters.
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(4) Subsections (1) and (2) apply to the
1994 and subsequent taxation years.
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(5) Subsection (3) applies to property
acquired after February 21, 1994.
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Conditional
amendment re
Bill C-48
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(6) If Bill C-48, introduced in the first
session of the thirty-fifth Parliament and
entitled An Act to establish the Department
of Natural Resources and to amend related
Acts is assented to, then, on the later of the
day on which this Act is assented to and the
day on which that Act comes into force,
subsection 13(18.1) of the Income Tax Act is
replaced by the following:
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Ascertainment
of certain
property
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(18.1) For the purpose of determining
whether property meets the criteria set out in
the Regulations in respect of prescribed
energy conservation property, the Technical
Guide to Class 43.1, as amended from time to
time and published by the Department of
Natural Resources, shall apply conclusively
with respect to engineering and scientific
matters.
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5. (1) Subparagraph 14(1)(a)(v) of the Act
is replaced by the following:
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A - B - C - D
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(2) The description of B in the definition
``cumulative eligible capital'' in subsection
14(5) of the Act is replaced by the following:
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(3) Subsection 14(5) of the Act is amended
by adding the following in alphabetical
order:
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``exempt
gains
balance'' « solde des gains exonérés »
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``exempt gains balance'' of an individual in
respect of a business of the individual for a
taxation year means the amount determined
by the formula
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A - B
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0.75(C - 1.1D)
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(4) Section 14 of the Act is amended by
adding the following after subsection (8):
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Effect of
election under
subsection
110.6(19)
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(9) Where an individual elects under
subsection 110.6(19) in respect of a business,
the individual shall be deemed to have
received proceeds of a disposition on
February 23, 1994 of eligible capital property
in respect of the business equal to the amount
determined by the formula
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(A - B) 4/3
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where
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A is the amount determined in respect of the
business under subparagraph (a)(ii) of the
description of A in the definition ``exempt
gains balance'' in subsection (5), and
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B is the amount determined in respect of the
business under subparagraph (a)(i) of the
description of A in the definition ``exempt
gains balance'' in subsection (5).
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(5) Subsections (1) to (4) apply to fiscal
periods that end after February 22, 1994
otherwise than because of an election under
subsection 25(1) of the Act.
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6. (1) Subparagraph 18(9)(a)(iii) of the
Act is replaced by the following:
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(2) Section 18 of the Act is amended by
adding the following after subsection (9):
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Group term
life insurance
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(9.01) Where
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no amount may be deducted in computing the
taxpayer's income for a taxation year from a
business or property in respect of the premium
except that there may be so deducted,
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A - B
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A x C/365
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