Bill C-28
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the taxpayer is deemed to be in the same
position in relation to the control of the
corporation as if the right were immediate and
absolute and as if the taxpayer had exercised
the right at that time for the purpose of
determining whether control of a corporation
has been acquired for the purposes of
subsections 10(10) and 13(24), section 37,
subsections 55(2), 66(11), (11.4) and (11.5),
66.5(3), 66.7(10) and (11), section 80,
paragraph 80.04(4)(h), subparagraph
88(1)(c)(vi), paragraph 88(1)(c.3), sections
111 and 127 and subsections 181.1(7),
190.1(6) and 249(4), and in determining for
the purpose of section 251.1 whether a
corporation is controlled by any person or
group of persons .
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Corporations
without share
capital
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(8.1) For the purposes of subsections (7) and
(8),
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(6) Subsection (1) applies to taxation
years that begin after 1988.
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(7) Subsection (2) and subsection 256(8.1)
of the Act, as enacted by subsection (5),
apply after April 26, 1995 except that,
before November 18, 1996, the reference in
subsection 256(7) of the Act, as amended by
subsection (2), to ``sections 18.1 and 37''
shall be read as ``section 37''.
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(8) Subsection 256(8) of the Act, as
enacted by subsection (5), applies after
February 21, 1994 except that,
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(8) Where at any time a taxpayer acquires
a right referred to in paragraph 251(5)(b) in
respect of shares and it can reasonably be
concluded that one of the main purposes of the
acquisition is
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the taxpayer is deemed to have acquired the
shares at that time for the purpose of
determining whether control of the
corporation has been acquired for the
purposes of subsection 13(24), section 37,
subsections 66(11), (11.4) and (11.5), 66.5(3)
and 66.7(10) and (11), section 80, paragraph
80.04(4)(h), subparagraph 88(1)(c)(vi),
paragraph 88(1)(c.3), sections 111 and 127
and subsection 249(4).
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(8) Where at any time a taxpayer acquires
a right referred to in paragraph 251(5)(b) in
respect of shares and it can reasonably be
concluded that one of the main purposes of the
acquisition is
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the taxpayer is deemed to have acquired the
shares at that time for the purpose of
determining whether control of the
corporation has been acquired for the
purposes of subsection 13(24), sections 37 and
55, subsections 66(11), (11.4) and (11.5),
66.5(3) and 66.7(10) and (11), section 80,
paragraph 80.04(4)(h) subparagraph
88(1)(c)(vi), paragraph 88(1)(c.3), sections
111 and 127 and subsection 249(4).
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(9) Subsection (3) applies to the 1994 and
subsequent taxation years.
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(10) Paragraph 256(7)(b) of the Act, as
enacted by subsection (4), applies
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(11) Paragraph 256(7)(c) of the Act, as
enacted by subsection (4), applies to
exchanges that occur after April 26, 1995,
other than an exchange that occurs
pursuant to a written agreement made
before that day.
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(12) Paragraphs 256(7)(d) and (e) of the
Act, as enacted by subsection (4), apply
after April 26, 1995 except that, with
respect to acquisitions of shares that occur
before June 20, 1996 or pursuant to a
written agreement made before June 20,
1996, subparagraph 256(7)(e)(ii) of the Act,
as enacted by subsection (4), shall be read as
follows:
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Exception to
coming- into-force
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247. (1) Subsections 73(4), 74(5),
subsection 18(13) of the Act, as enacted by
subsection 79(2) and subsections 89(1), (2)
and (6), 94(1) and (2), 95(1), 116(3) to (5),
120(1) and 124(1) and (2) do not apply to the
disposition of property by a person or
partnership (in this subsection and
subsection (2) referred to as the
``transferor'') that occurred before 1996
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Election
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(2) Notwithstanding subsection (1),
subsection 18(13) of the Act, as enacted by
subsection 79(2), and the other subsections
of this Act referred to in subsection (1)
apply to a disposition in respect of which the
transferor has filed with the Minister of
National Revenue before the end of the
third month after the month in which this
Act is assented to an election in writing to
have those subsections apply.
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Interpreta- tion
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(3) For the purpose of subsection (1),
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PART II |
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R.S., c. 2 (5th
Supp.); 1994,
cc. 7, 21;
1995, cc. 3,
21; 1997, c.
25
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INCOME TAX APPLICATION RULES |
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248. (1) The portion of paragraph
20(1)(c) of the Income Tax Application Rules
before subparagraph (ii) is replaced by the
following:
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(2) Subsection (1) applies to the 1994 and
subsequent taxation years.
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249. (1) Clause 26(5)(c)(ii)(A) of the Rules
is replaced by the following:
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(2) The portion of subsection 26(25) of the
Rules before paragraph (a) is replaced by
the following:
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Bond
conversion
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(25) Where, after May 6, 1974, there has
been an exchange to which section 51.1 of the
amended Act applies on which a taxpayer has
acquired a bond of a debtor (in this subsection
referred to as the ``new bond'') in exchange for
another bond of the same debtor (in this
subsection referred to as the ``old bond'')
owned by the taxpayer on December 31, 1971
and thereafter without interruption until
immediately before the exchange,
notwithstanding any other provision of this
Act or of the amended Act, for the purposes of
subsection 88(2.1) of the amended Act and of
determining the cost to the taxpayer and the
adjusted cost base to the taxpayer of the new
bond,
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(3) Section 26 of the Rules is amended by
adding the following after subsection (29):
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Additions to
taxable
Canadian
property
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(30) Subsections (1.1) to (29) do not apply
to a disposition by a non-resident person of a
taxable Canadian property that would not be
a taxable Canadian property immediately
before the disposition if section 115 of the
amended Act were read as it applied to
dispositions that occurred on April 26, 1995.
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(4) Subsections (1) and (3) apply to
dispositions that occur after April 26, 1995.
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(5) Subsection (2) applies to exchanges
that occur after October 1994.
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PART III |
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R.S., c. B-3;
R.S., cc. 27,
31 (1st
Supp.), cc. 3,
27 (2nd
Supp.); 1990,
c. 17; 1991, c.
46; 1992, cc.
1, 27; 1993,
cc. 28, 34;
1994, c. 26;
1995, c. 1;
1996, cc. 6,
23; 1997, c.
12
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BANKRUPTCY AND INSOLVENCY ACT |
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1992, c. 27,
s. 33; 1996, c.
23, s. 168
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250. (1) Subsection 67(3) of the
Bankruptcy and Insolvency Act is replaced
by the following:
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Exceptions
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(3) Subsection (2) does not apply in respect
of amounts deemed to be held in trust under
subsection 227(4) or (4.1) of the Income Tax
Act, subsection 23(3) or (4) of the Canada
Pension Plan or subsection 86(2) or (2.1) of
the Employment Insurance Act (each of which
is in this subsection referred to as a ``federal
provision'') nor in respect of amounts deemed
to be held in trust under any law of a province
that creates a deemed trust the sole purpose of
which is to ensure remittance to Her Majesty
in right of the province of amounts deducted
or withheld under a law of the province where
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and for the purpose of this subsection, any
provision of a law of a province that creates a
deemed trust is, notwithstanding any Act of
Canada or of a province or any other law,
deemed to have the same effect and scope
against any creditor, however secured, as the
corresponding federal provision.
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(2) Subsection (1) is deemed to have come
into force on June 15, 1994 except that, in
the application after June 14, 1994 and
before June 30, 1996 of subsection 67(3) of
the Act, as enacted by subsection (1), the
reference to ``subsections 86(2) or (2.1) of
the Employment Insurance Act'' shall be
read as a reference to ``subsections 57(2) or
(3) of the Unemployment Insurance Act''.
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PART IV |
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R.S., c. C-8;
R.S., cc. 6, 41
(1st Supp.),
cc. 5, 13, 27,
30 (2nd
Supp.), cc. 18,
38 (3rd
Supp.), cc. 1,
46, 51 (4th
Supp.); 1990,
c. 8; 1991, cc.
14, 44, 49;
1992, cc. 1, 2,
27, 48; 1993,
cc. 24, 27, 28;
1994, cc. 13,
21; 1995, c.
33; 1996, cc.
11, 16, 23
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CANADA PENSION PLAN |
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251. (1) Section 5 of the Canada Pension
Plan is renumbered as subsection 5(1) and
is amended by adding the following:
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Delegation
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(2) The Minister may authorize an officer or
a class of officers to exercise powers or
perform duties of the Minister under this Part.
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(2) Any power or duty of the Minister of
National Revenue delegated to an officer or
a class of officers by a regulation made
under subsection 40(2) of the Act before the
day on which this Act is assented to
continues to be delegated to that officer or
that class of officers until an authorization
by the Minister made under subsection 5(2)
of the Act, as enacted by subsection (1),
changes the delegation of that power or
duty.
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1994, c. 21,
s. 123
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252. (1) Subsection 23(3) of the Act is
replaced by the following:
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Where
amount
deducted not
remitted
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(3) Where an employer has deducted an
amount from the remuneration of an
employee as or on account of any contribution
required to be made by the employee but has
not remitted the amount to the Receiver
General, the employer is deemed,
notwithstanding any security interest (as
defined in subsection 224(1.3) of the Income
Tax Act) in the amount so deducted , to hold the
amount separate and apart from the property
of the employer and from property held by any
secured creditor (as defined in subsection
224(1.3) of the Income Tax Act) of that
employer that but for the security interest
would be property of the employer , in trust for
Her Majesty and for payment to Her Majesty
in the manner and at the time provided under
this Act.
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Extension of
trust
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(4) Notwithstanding the Bankruptcy and
Insolvency Act (except sections 81.1 and 81.2
of that Act), any other enactment of Canada,
any enactment of a province or any other law,
where at any time an amount deemed by
subsection (3) to be held by an employer in
trust for Her Majesty is not paid to Her
Majesty in the manner and at the time
provided under this Act, property of the
employer and property held by any secured
creditor (as defined in subsection 224(1.3) of
the Income Tax Act) of that employer that but
for a security interest (as defined in subsection
224(1.3) of the Income Tax Act) would be
property of the employer, equal in value to the
amount so deemed to be held in trust is
deemed
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and is property beneficially owned by Her
Majesty notwithstanding any security interest
in such property or in the proceeds thereof,
and the proceeds of such property shall be paid
to the Receiver General in priority to all such
security interests.
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Meaning of
``security
interest''
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(4.1) For the purposes of subsections (3) and
(4), a security interest does not include a
prescribed security interest.
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(2) Subsection (1) is deemed to have come
into force on June 15, 1994.
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253. Section 24 of the Act is amended by
adding the following after subsection (2):
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Electronic
records
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(2.1) Every employer required by this
section to keep records who does so
electronically shall retain them in an
electronically readable format for the
retention period referred to in subsection (2).
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Exemption
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(2.2) The Minister may, on such terms and
conditions as are acceptable to the Minister,
exempt an employer or a class of employers
from the requirement in subsection (2.1).
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