Bill C-93
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RECOMMENDATION |
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His Excellency the Governor General recommends to the House of
Commons the appropriation of public revenue under the circumstances,
in the manner and for the purposes set out in a measure entitled ``An Act
to implement certain provisions of the budget tabled in Parliament on
February 18, 1997''.
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SUMMARY |
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PART I |
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Part I establishes the Canada Foundation for Innovation with the
objects and purposes of paying grants to modernize and enhance the
infrastructure for research in Canada.
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PART II |
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Part II enables the Cowichan Tribes of Indians to impose a tax similar
to that imposed under the Tobacco Tax Act, R.S.B.C. 1979, c. 404 of
British Columbia, on sales of tobacco to Indians on the reserves of the
Cowichan Tribes.
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PART III |
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Part III enables the Cowichan Tribes of Indians to impose a 7%
value-added tax on all sales of tobacco products on the reserves of the
Cowichan Tribes.
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PART IV |
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Part IV enables the Westbank First Nation to impose a 7%
value-added tax on all sales of tobacco products on the reserves of the
Westbank First Nation.
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PART V |
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Part V amends the Excise Tax Act to implement increases in the
excise tax rates on tobacco products intended for retail sale in Ontario,
Quebec, New Brunswick, Nova Scotia and Prince Edward Island and to
modify the excise tax treatment of tobacco exports to foreign duty free
shops. In addition, the Income Tax Act is amended to extend the current
tobacco manufacturers' surtax and the Customs Tariff is amended to
reduce the amount of certain tobacco products that can be brought into
Canada by individuals on a tax and duty free basis.
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PART VI |
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Part VI amends the Income Tax Act to restructure the working
income supplement component of the child tax benefit by moving it
from a family basis to a per child basis. The assistance provided by the
working income supplement is also increased.
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PART VII |
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Part VII amends the Excise Tax Act and the Income Tax Act to allow
air carriers to exchange income tax loss carryforwards for rebates of
excise tax paid on aviation fuel. The rebate, which is available to air
carriers in respect of fuel purchased or imported in the years 1996 to
1999, may not exceed $20,000,000 a year for any one carrier or group
of carriers. An air carrier that claims a rebate must reduce its income tax
loss carryforwards by 10 times the amount of the rebate (or include 10
times the amount of the rebate in its income). If the air carrier later
repays the rebate, with interest, it may reinstate its losses.
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PART VIII |
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Part VIII amends the Excise Tax Act to clarify that taxpayers must use
the same method to measure the volume of fuel for the purpose of
accounting for excise tax as that used to establish the quantity of fuel
sold or imported.
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PART IX |
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Part IX amends the Employment Insurance Act to
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PART X |
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Part X amends the Bretton Woods and Related Agreements Act to
permit the Minister of Finance to enter agreements with the Bank for
International Settlements to guarantee repayment of amounts loaned to
a country in accordance with a credit facility.
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The Farm Credit Corporation Act is amended to increase the ceiling
on amounts that the Minister of Finance may pay to the Farm Credit
Corporation.
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PART XI |
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Part XI provides for the payment of $800 million plus interest to the
Canada Foundation for Innovation.
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EXPLANATORY NOTES |
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Excise Tax Act |
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Clause 59: (1) The amendment adds a reference to
section 23.22.
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Clause 60: (1) New.
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Clause 61: (1) The amendment deletes a reference to
the Province of New Brunswick.
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(2) Subsection 23.31(2) reads as follows:
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(2) Tax shall not be imposed under subsection (1) where the
purchaser referred to in that subsection is a consumer located in the
province referred to in that subsection and the purchase is for
consumption by the purchaser or by others at the expense of the
purchaser.
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Clause 62: (1) The amendment adds a reference to the
Province of New Brunswick.
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(2) Subsection 23.32(2) reads as follows:
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(2) Tax shall not be imposed under subsection (1) where the
purchaser referred to in that subsection is a consumer in the Province of
Quebec and the purchase is for consumption by the purchaser or by
others at the expense of the purchaser.
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Clause 63: (1) Subsection 23.33(1) reads as follows:
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23.33 (1) An excise tax shall be imposed, levied and collected on
manufactured tobacco, other than tobacco sticks, that is
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(2) Subsections 23.33(3) and (4) read as follows:
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(3) The tax imposed under subsection (1) is payable by the person
selling the manufactured tobacco to the purchaser referred to in that
subsection and is payable at the time of the sale.
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(4) The tax imposed on manufactured tobacco under subsection (1)
shall be equal to the amount by which
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exceeds
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Clause 64: (1) The definition ``Nova Scotia
manufactured tobacco'' in subsection 23.34(1) reads as
follows:
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``Nova Scotia manufactured tobacco'' means manufactured tobacco
that is marked or stamped in accordance with the Tobacco Tax Act,
R.S.N.S. 1989, c. 470, to indicate that the manufactured tobacco is
intended for retail sale in the Province of Nova Scotia.
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(2) New. The definitions ``Nova Scotia cigarettes''
and ``Nova Scotia tobacco sticks'' are the same as those
in subsection 68.169(1).
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(3) The relevant portion of subsection 23.34(2) reads
as follows:
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(2) An excise tax shall be imposed, levied and collected on
manufactured tobacco, other than tobacco sticks, that is Atlantic
manufactured tobacco, black stock or Nova Scotia manufactured
tobacco, to which paragraph 1(e) or 3(d) of Schedule II applies and that
a licensed wholesale vendor sells to a person other than
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(4) Subsection 23.34(4) reads as follows:
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(4) The tax imposed on manufactured tobacco under subsection (2)
shall be equal to the amount by which
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exceeds
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Clause 65: (1) The relevant portion of subsection
23.341(1) reads as follows:
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23.341 (1) An excise tax shall be imposed, levied and collected on
Nova Scotia manufactured tobacco, to which section 68.169 and
paragraph 1(e) or 3(d) of Schedule II apply, that a licensed retail vendor
sells to a person other than
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(2) Subsection 23.341(3) reads as follows:
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(3) The tax imposed under subsection (1) shall be equal to the
amount by which
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exceeds
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Clause 66: (1) Subsection 23.36(2) reads as follows:
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(2) Where a designated wholesale vendor sells to a designated retail
vendor a quantity of black stock, in respect of which subparagraph
1(c)(ii) or 3(b)(ii) of Schedule II applies, that is in excess of the quantity
of black stock that the designated wholesale vendor is authorized in
writing by the Nova Scotia Provincial Tax Commission to sell to the
designated retail vendor without the collection of tax under the Tobacco
Tax Act, R.S.N.S. 1989, c. 470, an excise tax shall be imposed, levied
and collected on that excess black stock.
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(2) Subsection 23.36(3) reads as follows:
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(3) Where a designated wholesale vendor sells black stock, in
respect of which subparagraph 1(c)(ii) or 3(b)(ii) of Schedule II applies,
to a person other than an Indian consumer on a reserve in Nova Scotia
or a designated retail vendor, an excise tax shall be imposed, levied and
collected on that black stock.
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(3) Subsection 23.36(5) reads as follows:
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(5) The tax imposed on black stock under subsection (2) or (3) shall
be equal to the amount by which
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exceeds
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Clause 67: (1) Section 68.161 reads as follows:
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68.161 The Minister may refund to the manufacturer or producer of
tobacco products (within the meaning assigned by section 23.1) the tax
paid under subsection 23.2(1) in respect of the tobacco products where
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Clause 68: (1) New. The definition ``Nova Scotia
manufactured tobacco'' is the same as that in subsection
23.34(1).
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(2) Subsections 68.169(3.21) and (3.22) are new.
Subsections 68.169(3.2), (4) and (5) read as follows:
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(3.2) Where, after the day on which the Act that enacts this
subsection is assented to, a licensed wholesale vendor sells Nova Scotia
cigarettes or Nova Scotia tobacco sticks to a licensed retail vendor, or
to a consumer in the Province of Prince Edward Island for consumption
by the consumer or by others at the expense of the consumer, the
Minister may pay to the licensed wholesale vendor a tax rebate equal to
the total of
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(4) To qualify to receive a rebate under any of subsections (2) to (3.2)
in respect of cigarettes or tobacco sticks, the licensed wholesale vendor
must
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(5) A licensed wholesale vendor shall not apply for a rebate under
any of subsections (2) to (3.2) more often than once per month.
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Clause 69: (1) The amendment adds a reference to
section 68.161.
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Clause 70: (1) The amendment deletes a reference to
the Province of New Brunswick.
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Clause 71: (1) The amendment adds a reference to the
Province of New Brunswick.
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Clause 72: (1) Section 97.3 reads as follows:
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97.3 Where manufactured tobacco, other than tobacco sticks, has
been marked or stamped in accordance with a statute of the Province of
Nova Scotia to indicate that the manufactured tobacco is intended for
sale in that province, every person who sells or offers for sale the
manufactured tobacco to a consumer in any other province, other than
the Province of Prince Edward Island, is guilty of an offence and is liable
on summary conviction to a fine of not less than $1,000 and not more
than the greater of $1,000 and triple the amount by which
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exceeds
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Clause 73: (1) Subsection 97.5(2) reads as follows:
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(2) Every person who sells or offers for sale black stock in respect of
which excise tax was imposed under section 23 at a rate provided for
under paragraph 1(c) or 3(b) of Schedule II, because of the application
of subparagraph 1(c)(ii) or 3(b)(ii) of that Schedule, to a person other
than a designated wholesale vendor, a designated retail vendor or an
Indian consumer on a reserve in Nova Scotia is guilty of an offence and
liable on summary conviction to a fine of not less than $1,000 and not
more than the greater of $1,000 and triple the amount by which
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exceeds
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Clause 74: (1) to (4) The relevant portion of item 1 of
Schedule II reads as follows:
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1. Cigarettes:
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Clause 75: (1) The amendment replaces ``$0.00575''
with ``$0.00865''.
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Clause 76: (1) The relevant portion of item 3 of
Schedule II reads as follows:
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3. Manufactured tobacco other than cigarettes and tobacco sticks:
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Income Tax Act |
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Clause 77: (1) The relevant portion of subsection
182(1) reads as follows:
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182. (1) Every corporation shall pay a tax under this Part for each
taxation year equal to 40% of that proportion of the corporation's Part
I tax on tobacco manufacturing profits for the year that
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Customs Tariff |
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Clause 78: (1) The relevant portion of Note 7(a) to
Chapter 98 of Schedule I reads as follows:
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7. For the purpose of heading 98.05:
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(a) the provisions shall apply to alcoholic beverages not exceeding 1.14
litres and tobacco not exceeding fifty cigars, two hundred cigarettes,
four hundred tobacco sticks and four hundred grams of manufactured
tobacco where they are included in the baggage accompanying the
importer, and no exemption is being claimed in respect of alcoholic
beverages or tobacco under another heading or subheading at the time
of importation;
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Clause 79: (1) Subheading Note 2 to Chapter 98 of
Schedule I reads as follows:
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2. For the purpose of subheading No. 9804.10, goods may include
alcoholic beverages not exceeding 1.14 litres, and tobacco not
exceeding fifty cigars, two hundred cigarettes, four hundred tobacco
sticks and four hundred grams of manufactured tobacco.
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Income Tax Act |
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Clause 80: (1) The relevant portion of subsection
122.61(1) reads as follows:
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122.61 (1) Where a person and, where the Minister so demands, the
person's cohabiting spouse at the end of a taxation year have filed a
return of income for the year, an overpayment on account of the
person's liability under this Part for the year shall be deemed to have
arisen during a month in relation to which the year is the base taxation
year, equal to the amount determined by the formula
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1/12(A - B)
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where
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A is the total of
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C - D
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(2) The relevant portion of subsection 122.61(5) reads
as follows:
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(5) Each amount (other than the amount of $20,921) expressed in
dollars in subsection (1) shall be adjusted so that, where the base
taxation year in relation to a particular month is after 1991, the amount
to be used under that subsection for the month is equal to the total of
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(3) New.
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Excise Tax Act |
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Clause 81: (1) The amendment adds a reference to
subsection 68.4(3.1).
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(2) New.
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(3) New.
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(4) Subsection 68.4(3.1) is new. Subsection 68.4(4)
reads as follows:
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(4) No fuel tax rebate shall be paid under subsection (2) or (3)
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(5) Subsections 68.4(6) to (8) read as follows:
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(6) Where a fuel tax rebate is paid to a person under this section in
respect of fuel and the person sells any of the fuel to a purchaser or uses
any of the fuel for a purpose other than the provision of eligible
transportation services for commercial purposes, the amount of the
rebate paid in respect of the fuel so sold or used shall be deemed to be
a tax under this Act payable by the person
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(7) Subject to subsections (8) and (9), a person to whom a fuel tax
rebate was paid under subsection (2) in a taxation year of the person
may repay to the Receiver General all or a part of the rebate.
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(8) A repayment made under subsection (7) in respect of a fuel tax
rebate paid under subsection (2) to a person in a taxation year of the
person shall be made on or before the day that is 90 days after the day
on which the Minister sends to the person a notice of assessment of tax
payable by the person under Part I of the Income Tax Act for the year,
a notice of determination under subsection 152(1.1) of that Act in
respect of the person for the year or a notification that no tax is payable
by the person under that Part for the year.
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(6) The relevant portion of subsection 68.4(9) reads as
follows:
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(9) Where a person repays under subsection (7) all or a part of a fuel
tax rebate, subsections 79(1) to (1.2) apply, with such modifications as
the circumstances require, as if
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Income Tax Act |
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Clause 82: (1) The relevant portion of subsection
12(1) reads as follows:
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12. (1) There shall be included in computing the income of a
taxpayer for a taxation year as income from a business or property such
of the following amounts as are applicable:
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Clause 83: (1) The relevant portion of subsection
87(2) reads as follows:
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(2) Where there has been an amalgamation of two or more
corporations after 1971 the following rules apply:
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Clause 84: (1) The relevant portion of subsection
111(10) reads as follows:
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(10) Where, in a particular taxation year, a taxpayer received an
amount (in this subsection referred to as a ``rebate'') as a fuel tax rebate
under subsection 68.4(2) of the Excise Tax Act, in computing the
amount of the taxpayer's non-capital loss for a taxation year (in this
subsection referred to as the ``loss year'') that is one of the 7 taxation
years preceding the particular year, there shall be deducted the lesser of
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(2) The relevant portion of subsection 111(11) reads as
follows:
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(11) Where a taxpayer was a member of a partnership at any time in
a fiscal period during which the partnership received a fuel tax rebate
under subsection 68.4(2) or (3) of the Excise Tax Act, the taxpayer is
deemed
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Clause 85: (1) The relevant portion of subsection
161(7) reads as follows:
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(7) For the purpose of computing interest under subsection (1) or (2)
on tax or a part of an instalment of tax for a taxation year, and for the
purpose of section 163.1,
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Clause 86: (1) The relevant portion of subsection
164(5) reads as follows:
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(5) For the purpose of subsection (3), the portion of any overpayment
of the tax payable by a taxpayer for a taxation year that arose as a
consequence of
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shall be deemed to have arisen on the day that is the latest of
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(2) The relevant portion of subsection 164(5.1) reads
as follows:
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(5.1) Where a repayment made under subsection (1.1) or (4.1) or an
amount applied under subsection (2) in respect of a repayment, or a part
thereof, may reasonably be regarded as being in respect of a claim made
by a taxpayer in an objection to or appeal from an assessment of tax for
a taxation year for
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interest shall not be paid or applied thereon for any part of a period that
is before the latest of
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Excise Tax Act |
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Clause 87: New.
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Employment Insurance Act |
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Clause 88: (1) The relevant portion of subsection
25(1) reads as follows:
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25. (1) For the purposes of this Part, a claimant is unemployed and
capable of and available for work during a period when the claimant is
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Clause 89: (1) Section 26 reads as follows:
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26. For the purposes of this Part, Part IV, the Income Tax Act and the
Canada Pension Plan, benefits paid to a claimant while employed
under employment benefits are not earnings from employment.
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Clause 90: (1) Subsections 96(7.1) and (8.1) are new.
Subsections 96(6) to (10) read as follows:
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(6) If an employer pays less than $30,000 in employer's premiums
during 1996, the Minister shall refund to the employer a portion of the
employer's premiums paid during 1997 determined by the following
formula if that amount is more than $1:
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P2 - (P1 + $500) 2
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where
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P1 is the amount of premiums paid in 1996; and
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P2 is the amount of premiums paid in 1997.
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(7) If an employer pays less than $30,000 in employer's premiums
during 1996, the Minister shall refund to the employer a portion of the
employer's premiums paid during 1998 determined by the following
formula if that amount is more than $1:
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P2 - (P1 + $500) 4
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where
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P1 is the amount of premiums paid in 1996; and
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P2 is the amount of premiums paid in 1998.
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(8) A refund under subsection (6) or (7) shall not exceed
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(9) If two or more employers are associated, as defined by the
regulations, they shall be considered a single employer for the purposes
of subsections (6) to (8) and any refund shall be allocated to them in the
prescribed manner.
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(10) A refund under subsections (4) to (7) is payable only if an
application is made in writing to the Minister within three years after the
end of the year for which the premiums were deducted or paid.
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Bretton Woods and Related Agreements Act |
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Clause 92: New.
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Farm Credit Corporation Act |
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Clause 93: Subsection 11(1) reads as follows:
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11. (1) At the request of the Corporation, the Minister of Finance
may, with the approval of the Governor in Council, pay to the
Corporation, out of the Consolidated Revenue Fund, amounts not
exceeding in the aggregate one billion, one hundred and twenty-five
million dollars, or such greater aggregate amount as may be authorized
from time to time under an appropriation Act.
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