Bill C-28

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	PART XVII
1995, c. 17, Sch. II	WESTERN GRAIN TRANSITION PAYMENTS ACT
	*303. (1) Paragraphs 4(4)(b) and (c) of the Western Grain Transition Payments Act* are replaced by the following:**
	(b) a transition payment received in respect of farmland that was, immediately before its disposition by the applicant, capital property of the applicant shall, where the farmland is disposed of before the payment is received, be considered to be an amount required by subsection 53(2) of that Act to be deducted in computing the adjusted cost base of the farmland to the applicant immediately before the disposition;
	(c) a transition payment to which neither paragraph (a) nor (b) applies, received by the applicant, shall be considered to be assistance received in the course of earning income from a business or property in respect of the cost of the property or in respect of an outlay or an expense; and
	(d) where, pursuant to an equitable arrangement referred to in paragraph 6(c), a portion of a transition payment received by an applicant is paid to a person or partnership that is leasing farmland from the applicant, that portion paid to the person or partnership is required to be included in computing the income of the person or partnership from a business for the taxation year of the person or partnership in which it is received and the amount so paid is deemed not to be a transition payment received by the applicant for the purposes of paragraphs (a) to (c) .
	(2) Subsection (1) applies in respect of payments made after June 22, 1995.
	PART XVIII
1988, c. 55	AN ACT TO AMEND THE INCOME TAX ACT, THE CANADA PENSION PLAN, THE UNEMPLOYMENT INSURANCE ACT, 1971, THE FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS AND FEDERAL POST-SECONDARY EDUCATION AND HEALTH CONTRIBUTIONS ACT, 1977 AND CERTAIN RELATED ACTS
	304. (1) Subsection 102(1) of An Act to amend the Income Tax Act, the Canada Pension Plan, the Unemployment Insurance Act, 1971, the Federal-Provincial Fiscal Arrangements and Federal Post-Secondary Education and Health Contributions Act, 1977 and certain related Acts, being chapter 55 of the Statutes of Canada, 1988, is repealed.
	(2) Subsection 102(5) of the Act is repealed.
	(3) Subsections (1) and (2) are deemed to have come into force on September 13, 1988.
	PART XIX
1995, c. 21	AN ACT TO AMEND THE INCOME TAX ACT, THE INCOME TAX APPLICATION RULES AND RELATED ACTS
	305. (1) Subsection 46(8) of An Act to amend the Income Tax Act, the Income Tax Application Rules and related Acts, being chapter 21 of the Statutes of Canada, 1995, is replaced by the following:
	(8) Subsections (1) to (6) apply to taxation years of foreign affiliates of taxpayers that begin after 1994 except that, where there has been a change in the taxation year of a foreign affiliate of a taxpayer in 1994 and after February 22, 1994, subsections (1) to (6) apply to taxation years of the foreign affiliate that end after 1994, unless
	(a) the foreign affiliate had requested the change in writing before February 22, 1994 from the income taxation authority of the country in which the foreign affiliate was resident and subject to income taxation; or
	(b) the foreign affiliate's first taxation year that began after 1994 began at a time in 1995 that is earlier than the time at which that taxation year would have begun if the change had not occurred .
	(9) Subsection (7) applies to rights acquired and shares acquired or disposed of in taxation years of foreign affiliates of taxpayers that begin after 1994 except that, where there has been a change in the taxation year of a foreign affiliate of a taxpayer in 1994 and after February 22, 1994, subsection (7) applies to rights acquired and shares acquired or disposed of in taxation years of the foreign affiliate that end after 1994, unless
	(a) the foreign affiliate had requested the change in writing before February 22, 1994 from the income taxation authority of the country in which the foreign affiliate was resident and subject to income taxation; or
	(b) the foreign affiliate's first taxation year that began after 1994 began at a time in 1995 that is earlier than the time at which that taxation year would have begun if the change had not occurred.
	(2) Subsection (1) is deemed to have come into force on June 22, 1995.
	PART XX
1996, c. 21	INCOME TAX BUDGET AMENDMENT ACT
	*306. (1) Subsection 30(26) of the Income Tax Act Budget Amendment Act, being chapter 21 of the Statutes of Canada 1996, is replaced by the following:*
	(26) Subject to subsection (26.1), subsections (1) to (3) and (5) to (23), subsections 127(11.4) and (11.5) of the Act, as enacted by subsection (24), and subsections 127(13) to (25) of the Act, as enacted by subsection (25), apply to taxation years that begin after 1995.
	(26.1) Where, because of the application of subsection (26), an amount paid or payable by a person or partnership to a taxpayer with whom the person or partnership does not deal at arm's length otherwise
	(a) would be a qualified expenditure of the person or partnership but would not be a contract payment received or receivable by the taxpayer, or
	(b) would not be a qualified expenditure of the person or partnership but would be a contract payment received or receivable by the taxpayer,
	the amount is deemed not to be a qualified expenditure of the person or partnership and not to be a contract payment received or receivable by the taxpayer.
	(2) Subsection (1) is deemed to have come into force on June 20, 1996.
	PART XXI
1997, c. 25	INCOME TAX BUDGET AMENDMENTS ACT, 1996
	*307. (1) Subsection 9(8) of the Income Tax Budget Amendments Act, 1996, being chapter 25 of the Statutes of Canada, 1997, is replaced by the following:*
	(8) Subsection (6) applies after 1996, except that
	(a) a support amount, as defined in subsection 56.1(4) of the Act, as enacted by subsection (6), does not include an amount
	(i) that was received under a decree, order or judgment of a competent tribunal, or under a written agreement, that does not have a commencement day (within the meaning assigned by that subsection 56.1(4)), and
	(ii) that if paid and received would, but for this Act, not be included in computing the income of the recipient of the amount; and
	(b) with respect to an amount payable or receivable under a decree, order or judgment of a competent tribunal, or under a written agreement, made after March 27, 1986 and before 1988, the portion of the definition ``support amount'' in subsection 56.1(4) of the Act, as enacted by subsection (6), before paragraph (a) shall be read without reference to ``the recipient has discretion as to the use of the amount, and''.
	(2) Subsection (1) is deemed to have come into force on April 25, 1997.
	308. (1) Subsection 18(10) of the Act is replaced by the following:
	(10) Subsection (5) applies to amalgamations that occur after 1995, except that the expression ``subsection 66(12.6), (12.601) or (12.62) in respect of Canadian exploration expenses or Canadian development expenses '' in subsection 87(4.4) of the Act, as enacted by subsection (5), shall be read as ``subsection 66(12.6), (12.601), (12.62) or (12.64) in respect of Canadian exploration expenses, Canadian development expenses or Canadian oil and gas property expenses '' in respect of amalgamations that occur before 1999.
	(2) Subsection (1) is deemed to have come into force on April 25, 1997.