Bill C-36

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Royal Assent

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	(a) in the case of a corporation, more than 53 weeks after the period began,
	(b) in the case of
	(i) an individual (other than a testamentary trust or an individual to whom section 149 or 149.1 applies),
	(ii) a partnership of which
	(A) an individual (other than a testamentary trust or an individual to whom section 149 or 149.1 applies),
	(B) a professional corporation, or
	(C) a partnership to which this subparagraph applies,
	would, if the fiscal period ended at the end of the calendar year in which the period began, be a member of the partnership in the period, or
	(iii) a professional corporation that would, if the fiscal period ended at the end of the calendar year in which the period began, be in the period a member of a partnership to which subparagraph (ii) applies,
	after the end of the calendar year in which the period began unless, in the case of a business, the business is not carried on in Canada or is a prescribed business, and
	(c) in any other case, more than 12 months after the period began,
	and, for the purpose of this subsection, the activities of a person to whom section 149 or 149.1 applies are deemed to be a business.
Not a member of a partnership	(2) For the purpose of subparagraph (1)(b)(ii) and subsection (4), a person or partnership that would not have a share of any income or loss of a partnership for a fiscal period of the partnership, if the period ended at the end of the calendar year in which the period began, is deemed not to be a member of the partnership in that fiscal period.
Subsequent fiscal periods	(3) Where a fiscal period of a business or a property of a person or partnership ends at any time, the subsequent fiscal period, if any, of the business or property of the person or partnership is deemed to begin immediately after that time.
Alternative method	(4) Paragraph (1)(b) does not apply to a fiscal period of a business carried on, throughout the period of time that began at the beginning of the fiscal period and ended at the end of the calendar year in which the fiscal period began,
	(a) by an individual (otherwise than as a member of a partnership), or
	(b) by an individual as a member of a partnership, where throughout that period
	(i) each member of the partnership is an individual, and
	(ii) the partnership is not a member of another partnership,
	where
	(c) in the case of an individual
	(i) who is referred to in paragraph (a), or
	(ii) who is a member of a partnership no member of which is a testamentary trust,
	an election in prescribed form to have paragraph (1)(b) not apply is filed with the Minister by the individual on or before the individual's filing-due date, and with the individual's return of income under Part I, for the taxation year that includes the first day of the first fiscal period of the business that begins after 1994, and
	(d) in the case of an individual who is a member of a partnership a member of which is a testamentary trust, an election in prescribed form to have paragraph (1)(b) not apply is filed with the Minister by the individual on or before the earliest of the filing-due dates of the members of the partnership for a taxation year that includes the first day of the first fiscal period of the business that begins after 1994.
Alternative method not applicable to tax shelter	(5) Subsection (4) does not apply to a particular fiscal period of a business where, in a preceding fiscal period or throughout the period of time that began at the beginning of the particular period and ended at the end of the calendar year in which the particular period began, the expenditures made in the course of carrying on the business were primarily the cost or capital cost of tax shelters (within the meaning assigned by subsection 237.1(1)).
Revocation of election	(6) Subsection (4) does not apply to fiscal periods of a business carried on by an individual that begin after the beginning of a particular taxation year of the individual where
	(a) an election in prescribed form to revoke an election filed under subsection (4) in respect of the business is filed with the Minister; and
	(b) the election to revoke is filed
	(i) in the case of an individual
	(A) who is not a member of a partnership, or
	(B) who is a member of a partnership no member of which is a testamentary trust,
	by the individual on or before the individual's filing-due date, and with the individual's return of income under Part I, for the particular taxation year, and
	(ii) in case of an individual who is a member of a partnership a member of which is a testamentary trust, by the individual on or before the earliest of the filing-due dates of the members of the partnership for a taxation year that includes the first day of the first fiscal period of the business that begins after the beginning of the particular year.
Change of fiscal period	(7) No change in the time when a fiscal period ends may be made for the purposes of this Act without the concurrence of the Minister.
	(2) Subsection (1) applies to fiscal periods that begin after 1994.
	PART II
R.S., c. E-14; R.S., cc. 15, 27 (1st Supp.), cc. 1, 7, 42 (2nd Supp.), c. 12 (4th Supp.); 1989, c. 22; 1990, c. 45; 1991, c. 42; 1993, c. 25; 1994, cc. 13, 29, 37; 1995, cc. 36, 41	EXCISE ACT
R.S., c. 12 (4th Supp.), s. 61	*62. (1) Paragraph 110.1(1)(b) of the Excise Act* is replaced by the following:**
	(b) interest at such rates per annum prescribed under the Income Tax Act for amounts payable by the Minister as refunds of overpayments of tax under that Act as are in effect from time to time, in respect of each day between the expiration of that time and the day on which the total duty, penalty and interest outstanding is paid, calculated on the total duty, penalty and interest outstanding on that day.
	(2) Subsection (1) applies to interest that is calculated in respect of periods that are after June 1995.
	PART III
R.S., c. E-15; R.S., c. 15 (1st Supp.), cc. 1, 7, 42 (2nd Supp.), cc. 18, 28, 41, 42 (3rd Supp.), cc. 12, 47 (4th Supp.); 1988, c. 65; 1989, c. 22; 1990, c. 45; 1991, c. 42; 1992, cc. 1, 27, 28, 29; 1993, cc. 25, 27, 28, 38; 1994, cc. 9, 13, 21, 29, 41; 1995, cc. 5, 36, 41, 46	EXCISE TAX ACT
	Amendments
R.S., c. 7 (2nd Supp.), s. 49(1)	*63. (1) Subsection 102.1(2) of the Excise Tax Act* is amended by adding the word ``and'' at the end of paragraph (a) and by repealing paragraphs (c) and (d).**
R.S., c. 7 (2nd Supp.), s. 49(1)	(2) Paragraph 102.1(5)(a) of the Act is replaced by the following:
	(a) cancel the authorization if the judge is not satisfied that the conditions referred to in paragraphs (2)(a) and (b) have been met; or
1994, c. 9, s. 2(1)	64. (1) The definition ``taxation year'' in subsection 123(1) of the Act is amended by striking out the word ``and'' at the end of paragraph (a) and by replacing paragraph (b) with the following:
	(b) where the person is a partnership described in subparagraph 249.1(1)(b)(ii) of that Act, the fiscal period of the person's business determined under subsection 249.1(1) of that Act, and
	(c) in any other case, the period that would be the taxation year of the person for the purposes of that Act if the person were a corporation other than a professional corporation (within the meaning assigned by subsection 248(1) of that Act);
	(2) Subsection (1) applies to fiscal periods that begin after 1994.
1990, c. 45, s. 12(1); 1993, c. 27, s. 203 (Sch. I, para. 1(b))	65. (1) Subsection 228(2) of the Act is replaced by the following:
Remittance	(2) Where the net tax for a reporting period of a person is a positive amount, the person shall remit that amount to the Receiver General,
	(a) where the person is an individual to whom subparagraph 238(1)(a)(ii) applies in respect of the reporting period, on or before April 30 of the year following the end of the reporting period; and
	(b) in any other case, on or before the day on or before which the return for that period is required to be filed.
	(2) Subsection (1) applies to reporting periods that begin after 1994.
1990, c. 45, s. 12(1)	66. (1) Paragraph 238(1)(a) of the Act is replaced by the following:
	(a) where the registrant's reporting period is or would, but for subsection 251(1), be the fiscal year,
	(i) except where subparagraph (ii) applies, within three months after the end of the year, and
	(ii) where
	(A) the registrant is an individual,
	(B) the fiscal year is a calendar year, and
	(C) for the purposes of the Income Tax Act,
	(I) the individual carried on a business in the year, and
	(II) the filing-due date of the individual for the year is June 15 of the following year,
	on or before that day; and
	(2) Subsection (1) applies to reporting periods that begin after 1994.
	67. (1) Subsection 295(1) 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 registrant for the purposes of this Part, or
	(b) an applicant (other than an individual) for a rebate under this Part;
	(2) Subsection 295(5) of the Act is amended by striking out the word ``or'' at the end of paragraph (h), by adding the word ``or'' at the end of paragraph (i) and by adding the following after paragraph (i):
	(j) 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.
	Transitional Provisions
Fiscal periods of persons entitled to elect	*68. Where, for the purposes of the Income Tax Act, the fiscal period of a business of*
	*(a) an individual or trust, whose fiscal year, for the purposes of Part IX of the Excise Tax Act, is the fiscal period of the business, or*
	(b) a partnership
	ends at the end of 1995 but would have ended after 1995 had the individual, trust or a member of the partnership, as the case may be, made an election in respect of the fiscal period which the individual, trust or member was entitled to make under section 249.1 of the Income Tax Act, as enacted by section 61, for the purpose of determining the fiscal year of the individual, trust or partnership for the purposes of Part IX of the Excise Tax Act, the said section 249.1 applies only to fiscal periods of the business that begin after 1995.
Status as financial institution of persons entitled to elect	69. For the purpose of determining if a partnership to which section 68 applies is, for the purposes of Part IX of the Excise Tax Act, a financial institution throughout its taxation year that begins on January 1, 1997, subparagraph 149(1)(b)(i) of that Act and the portion of paragraph 149(1)(b) of that Act after that subparagraph shall be read as follows:
	(i) the total of all amounts, each of which is an amount
	(A) that would be included in computing, for the purposes of the Income Tax Act, the person's income for the period that is the person's taxation year immediately preceding the particular year if it were a fiscal period of the business of the person for the purposes of that Act, and
	(B) that is interest, a dividend (other than a dividend in kind or a patronage dividend) or a separate fee or charge for a financial service
	exceeds $10,000,000, or
	(ii) the person was, because of this paragraph, a financial institution throughout that period.
Status as financial institution of persons not entitled to elect	*70. Where, for the purposes of the Income Tax Act,*
	(a) a particular fiscal period of a business of a corporation or of a partnership (other than a partnership to which section 68 applies) began after January 1, 1995 and ends at the end of 1995 because of the application of paragraph 249.1(1)(b) of that Act, as enacted by section 61, and
	(b) at the end of 1994, the corporation or partnership carried on the business,
	for the purposes of determining if, for the purposes of Part IX of the Excise Tax Act, the corporation or partnership is a financial institution throughout its taxation year that began on January 1, 1996, subparagraph 149(1)(b)(i) of that Act and the portion of paragraph 149(1)(b) of that Act after that subparagraph shall be read as follows:
	(i) the total of all amounts, each of which is an amount
	(A) that is included in computing, for the purposes of the Income Tax Act, the person's income for the person's taxation year immediately preceding the particular year, and
	(B) that is interest, a dividend (other than a dividend in kind or a patronage dividend) or a separate fee or charge for a financial service
	exceeds $10,000,000, or

Bill C-36

PART II

EXCISE ACT

PART III

EXCISE TAX ACT

Amendments

Transitional Provisions