Bill C-36

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Royal Assent

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	(i) where the year is the 1996 taxation year, the amount, if any, by which the amount of the individual's undeducted RRSP premiums at the beginning of the year exceeds the individual's cumulative excess amount in respect of registered retirement savings plans at the end of the 1995 taxation year, and
	(ii) in any other case, the group RRSP amount in respect of the individual at the end of the preceding taxation year, and
	(b) the amount that would be the individual's cumulative excess amount in respect of registered retirement savings plans at that time if the value of D in paragraph (1.1)(b) were nil.
Qualifying group RRSP premium	(1.31) For the purpose of the description of F in paragraph (1.3)(a), a qualifying group RRSP premium paid by an individual is a premium paid under a registered retirement savings plan where
	(a) the plan is part of a qualifying arrangement,
	(b) the premium is an amount to which the individual is entitled for services rendered by the individual (whether or not as an employee), and
	(c) the premium was remitted to the plan on behalf of the individual by the person or body of persons that is required to remunerate the individual for the services, or by an agent for that person or body,
	but does not include the part, if any, of a premium that, by making (or failing to make) an election or exercising (or failing to exercise) any other right under the arrangement after beginning to participate in the arrangement and within 12 months before the time the premium was paid, the individual could have prevented from being paid under the plan and that would not as a consequence have been required to be remitted on behalf of the individual to another registered retirement savings plan or to a registered pension plan in respect of a money purchase provision of the plan.
Qualifying arrangement	(1.32) For the purpose of paragraph (1.31)(a), a qualifying arrangement is an arrangement under which premiums that satisfy the conditions in paragraphs (1.31)(b) and (c) are remitted to registered retirement savings plans on behalf of two or more individuals, but does not include an arrangement where it is reasonable to consider that one of the main purposes of the arrangement is to reduce tax payable under this Part.
	(4) Section 204.2 of the Act is amended by adding the following after subsection (1.4):
Transitional amount	(1.5) For the purpose of the description of E in paragraph (1.1)(b), an individual's transitional amount at any time in a taxation year is the lesser of
	(a) $6,000, and
	(b) where the value of L is nil, nil, and in any other case, the amount determined by the formula
	L - M
	where
	L is the amount, if any, by which
	(i) the amount that would be determined under subsection (1.2) to be the amount of the individual's undeducted RRSP premiums at that time if
	(A) the value of I in that subsection were determined for the 1995 taxation year without including premiums paid after February 26, 1995,
	(B) the value of I in that subsection were nil for the 1996 and subsequent taxation years, and
	(C) the value of J in that subsection were determined for the 1995 and subsequent taxation years without including the part, if any, of an amount received by the individual out of or under a registered retirement savings plan or registered retirement income fund that can reasonably be considered to be in respect of premiums paid after February 26, 1995 by the individual under a registered retirement savings plan
	exceeds
	(ii) the total of all amounts each of which is an amount deducted under subsection 146(5) or (5.1) in computing the individual's income for a preceding taxation year, to the extent that the amount was deducted in respect of premiums paid after that year (other than premiums paid before February 27, 1995), and
	M is the amount that would be determined by the formula in paragraph (1.1)(b) in respect of the individual at that time if the values of D and E in that paragraph were nil and section 257 did not apply to that formula.
	(5) Subsections (1) to (4) apply to the 1996 and subsequent taxation years.
	52. (1) The heading of Part XI.2 of the Act is replaced by the following:
	TAX IN RESPECT OF DISPOSITIONS OF CERTAIN PROPERTIES
	(2) Subsection (1) applies after February 27, 1995.
	53. (1) The Act is amended by adding the following after section 207.3:
Tax payable by recipient of an ecological gift	207.31 Any charity or municipality that, at any time in a taxation year, without the authorization of the Minister of the Environment, or a person designated by that Minister, disposes or changes the use of a property described in paragraph 110.1(1)(d) or in the definition ``total ecological gifts'' in subsection 118.1(1) and given to the charity or municipality after February 27, 1995 shall, in respect of the year pay a tax under this Part equal to 50% of the fair market value of the property at the time of the disposition or change.
	(2) Subsection (1) applies after February 27, 1995.
	54. (1) The portion of subsection 207.4(1) of the Act before paragraph (a) is replaced by the following:
Return and payment of tax	207.4 (1) Any institution, public authority, charity or municipality that is liable to pay a tax under subsection 207.3 or 207.31 in respect of a year shall, within 90 days after the end of the year,
	(2) Subsection (1) applies after February 27, 1995.
	55. (1) Subparagraphs 212(1)(h)(i) and (ii) of the Act are repealed.
	(2) Subsection (1) applies to payments made after 1995.
	56. (1) Subparagraph 217(b)(i) of the Act is replaced by the following:
	(i) paragraph 115(1)(a) shall be read as though it included the following subparagraph:
	``(i.1) amounts paid or credited to the non-resident person in the year on which that person would, under any of paragraphs 212(1)(f), (h), (j) to (m) and (q) be liable to pay tax under Part XIII if no election were made under section 217,'', and
	(2) Paragraph 217(c) of the Act is amended by replacing the portion of section 118.94 therein after paragraph 118.94(b) with the following:
	not exceeding the appropriate percentage for the year of the total of all amounts each of which is an amount paid or credited to the individual in the year on which the individual would, under any of paragraphs 212(1)(f), (h), (j) to (m) and (q) be liable to pay tax under Part XIII if no election were made under section 217.''.
	(3) Subsections (1) and (2) apply to the 1996 and subsequent taxation years.
	57. Section 227 of the Act is amended by adding the following after subsection (4):
Payments by trustees, etc.	(5) Where a specified person in relation to a particular person (in this subsection referred to as the ``payer'') has any direct or indirect influence over the disbursements, property, business or estate of the payer and the specified person, alone or together with another person, authorizes or otherwise causes a payment referred to in subsection 135(3) or 153(1), or on which tax is payable under Part XIII, to be made by or on behalf of the payer, the specified person
	(a) is, for the purposes of subsections 135(3) and 153(1), section 215 and this section, deemed to be a person who made the payment;
	(b) is jointly and severally liable with the payer to pay to the Receiver General
	(i) all amounts payable by the payer because of any of subsections 135(3) and 153(1) and section 215 in respect of the payment, and
	(ii) all amounts payable under this Act by the payer because of any failure to comply with any of those provisions in respect of the payment; and
	(c) is entitled to deduct or withhold from any amount paid or credited by the specified person to the payer or otherwise recover from the payer any amount paid under this subsection by the specified person in respect of the payment.
Definition of ``specified person''	(5.1) In subsection (5), a ``specified person'' in relation to a particular person means a person who is, in relation to the particular person or the disbursements, property, business or estate of the particular person,
	(a) a trustee;
	(b) a liquidator;
	(c) a receiver;
	(d) an interim receiver;
	(e) a receiver-manager;
	(f) a trustee in bankruptcy or other person appointed under the Bankruptcy and Insolvency Act;
	(g) an assignee;
	(h) a secured creditor (as defined in subsection 224(1.3));
	(i) an executor or administrator;
	(j) any person acting in a capacity similar to that of a person referred to in any of paragraphs (a) to (i);
	(k) a person appointed (otherwise than as an employee of the creditor) at the request of, or on the advice of, a secured creditor in relation to the particular person to monitor, or provide advice in respect of, the disbursements, property, business or estate of the particular person under circumstances such that it is reasonable to conclude that the person is appointed to protect or advance the interests of the creditor; or
	(l) an agent of a specified person referred to in any of paragraphs (a) to (k).
``Person'' includes partnership	(5.2) For the purposes of this section, references in subsections (5) and (5.1) to persons include partnerships.
	58. (1) Subsection 231.2(3) of the Act is amended by adding the word ``and'' at the end of paragraph (a) and by repealing paragraphs (c) and (d).
	(2) Subsection 231.2(6) of the Act is replaced by the following:
Powers on review	(6) On hearing an application under subsection (5), a judge may cancel the authorization previously granted if the judge is not then satisfied that the conditions in paragraphs (3)(a) and (b) have been met and the judge may confirm or vary the authorization if the judge is satisfied that those conditions have been met.
	59. (1) Subsection 241(4) of the Act is amended by striking out the word ``or'' at the end of paragraph (j), by adding the word ``or'' at the end of paragraph (k) and by adding the following after paragraph (k):
	(l) provide the business number, name, address, telephone number and facsimile number of a holder of a business number to an official of a department or agency of the Government of Canada or of a province solely for the purpose of the administration or enforcement of an Act of Parliament or a law of a province, if the holder of the business number is required by that Act or that law to provide the information (other than the business number) to the department or agency.
	(2) Subsection 241(10) of the Act is amended by adding the following in alphabetical order:
``business number'' « numéro d'entrepri- se »	``business number'' means the number (other than a Social Insurance Number) used by the Minister to identify
	(a) a corporation or partnership, or
	(b) any other association or taxpayer that carries on a business or is required by this Act to deduct or withhold an amount from an amount paid or credited or deemed to be paid or credited under this Act;
	60. (1) The definition ``fiscal period'' in subsection 248(1) of the Act is repealed.
	(2) Subsection 248(1) of the Act is amended by adding the following in alphabetical order:
``filing-due date'' « date d'échéance de production »	``filing-due date'' for a taxation year of a taxpayer means the day on or before which the taxpayer's return of income under Part I for the year is required to be filed or would be required to be filed if tax under that Part were payable by the taxpayer for the year;
``profes- sional corporation'' « société profes- sionnelle »	``professional corporation'' means a corporation that carries on the professional practice of an accountant, dentist, lawyer, medical doctor, veterinarian or chiropractor;
``scientific research and experimental develop- ment'' « activités de recherche scientifique et de développe- ment expérimen- tal »	``scientific research and experimental development'' has the meaning assigned by regulation;
	(3) Section 248 of the Act is amended by adding the following after subsection (27):
Limitation respecting inclusions, deductions and tax credits	(28) Unless a contrary intention is evident, no provision of this Act shall be read or construed
	(a) to require the inclusion or permit the deduction, either directly or indirectly, in computing a taxpayer's income, taxable income or taxable income earned in Canada, for a taxation year or in computing a taxpayer's income or loss for a taxation year from a particular source or from sources in a particular place, of any amount to the extent that the amount has already been directly or indirectly included or deducted, as the case may be, in computing such income, taxable income, taxable income earned in Canada or loss, for the year or any preceding taxation year;
	(b) to permit the deduction, either directly or indirectly, in computing a taxpayer's tax payable under any Part of this Act for a taxation year of any amount to the extent that the amount has already been directly or indirectly deducted in computing such tax payable for the year or any preceding taxation year; or
	(c) to consider an amount to have been paid on account of a taxpayer's tax payable under any Part of this Act for a taxation year to the extent that the amount has already been considered to have been paid on account of such tax payable for the year or any preceding taxation year.
	(4) Subsection (1) applies to fiscal periods that begin after 1994.
	(5) The definition ``filing-due date'' in subsection 248(1) of the Act, as enacted by subsection (2), applies after 1993.
	(6) The definition ``professional corporation'' in subsection 248(1) of the Act, as enacted by subsection (2), applies after 1994.
	(7) The definition ``scientific research and experimental development'' in subsection 248(1) of the Act, as enacted by subsection (2), applies to work performed after February 27, 1995 except that, for the purposes of paragraphs 149(1)(j) and (8)(b) of the Act, that definition does not apply to work performed pursuant to an agreement in writing entered into before February 28, 1995.
	(8) Subsection (3) applies to taxation years that end after July 19, 1995.
	61. (1) The Act is amended by adding the following after section 249:
Definition of ``fiscal period''	249.1 (1) For the purposes of this Act, a ``fiscal period'' of a business or a property of a person or partnership means the period for which the person's or partnership's accounts in respect of the business or property are made up for purposes of assessment under this Act, but no fiscal period may end

Bill C-36

TAX IN RESPECT OF DISPOSITIONS OF CERTAIN PROPERTIES