Bill C-28
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1st Session, 36th Parliament, 46-47 Elizabeth II, 1997-98
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The House of Commons of Canada
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BILL C-28 |
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An Act to amend the Income Tax Act, the
Income Tax Application Rules, the
Bankruptcy and Insolvency Act, the
Canada Pension Plan, the Children's
Special Allowances Act, the Companies'
Creditors Arrangement Act, the Cultural
Property Export and Import Act, the
Customs Act, the Customs Tariff, the
Employment Insurance Act, the Excise
Tax Act, the Federal-Provincial Fiscal
Arrangements Act, the Income Tax
Conventions Interpretation Act, the Old
Age Security Act, the Tax Court of
Canada Act, the Tax Rebate Discounting
Act, the Unemployment Insurance Act,
the Western Grain Transition Payments
Act and certain Acts related to the
Income Tax Act
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SHORT TITLE |
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Short title
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1. This Act may be cited as the Income Tax
Amendments Act, 1997.
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PART I |
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R.S., c. 1 (5th
Supp.); 1994,
cc. 7, 8, 13,
21, 28, 29, 38,
41; 1995, cc.
1, 3, 11, 18,
21, 38, 46;
1996, cc. 11,
21, 23; 1997,
cc. 10, 12, 25,
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INCOME TAX ACT |
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DIVISION A |
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1997 BUDGET AMENDMENTS |
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2. (1) Paragraphs 12(1)(z.1) and (z.2) of
the Income Tax Act are replaced by the
following:
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Qualifying
environ- mental trusts
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Dispositions
of interests in
qualifying
environ- mental trusts
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(2) Subsection (1) applies to taxation
years that end after February 18, 1997.
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3. (1) Subsection 18(11) of the Act is
amended by striking out the word ``or'' at
the end of paragraph (f), by adding the
word ``or'' at the end of paragraph (g) and
by adding the following after paragraph
(g):
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(2) Subsection (1) applies to the 1998 and
subsequent taxation years.
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4. (1) Paragraphs 20(1)(ss) and (tt) of the
Act are replaced by the following:
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Qualifying
environ- mental trusts
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Acquisition of
interests in
qualifying
environ- mental trusts
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(2) Subsection (1) applies to taxation
years that end after February 18, 1997 and,
for the purpose of paragraph 20(1)(ss) of
the Act, as enacted by subsection (1), each
contribution made after 1995 and before
February 19, 1997 by a taxpayer to a trust
(other than a mining reclamation trust as
defined in subsection 248(1) of the Act) is
deemed to have been made on February 19,
1997.
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5. (1) Subsection 37(12) of the Act is
replaced by the following:
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Misclassified
expenditures
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(12) If a taxpayer has not filed a prescribed
form in respect of an expenditure in
accordance with subsection (11), for the
purposes of this Act, the expenditure is
deemed not to be an expenditure on or in
respect of scientific research and
experimental development.
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(2) Subsection (1) applies to the 1997 and
subsequent taxation years.
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6. (1) Paragraph 38(a) of the Act is
replaced by the following:
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(2) Subsection (1) applies after February
18, 1997.
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7. (1) Subparagraph 39(1)(a)(v) of the Act
is replaced by the following:
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(2) The portion of subsection 39(5) of the
Act before paragraph (a) is replaced by the
following:
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Exception
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(5) An election under subsection (4) does
not apply to a disposition of a Canadian
security by a taxpayer (other than a mutual
fund corporation or a mutual fund trust) who
at the time of the disposition is
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(3) Subsection (1) applies to taxation
years that end after February 18, 1997.
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(4) Subsection (2) applies to the 1991 and
subsequent taxation years.
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(5) For the purpose of subsection 39(4) of
the Act, if
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the election is deemed to have been made in
the corporation's or trust's return of
income under Part I of the Act for the
particular year.
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8. (1) Section 40 of the Act is amended by
adding the following after subsection (1):
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Gift of non- qualifying security
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(1.01) A taxpayer's gain for a particular
taxation year from a disposition of a
non-qualifying security of the taxpayer (as
defined in subsection 118.1(18)) that is the
making of a gift (other than an excepted gift,
within the meaning assigned by subsection
118.1(19)) to a qualified donee (as defined in
subsection 149.1(1)) is the amount, if any, by
which
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exceeds
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(2) Subsection (1) applies to the 1997 and
subsequent taxation years.
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9. (1) Subparagraph 56(1)(a)(i) of the Act
is amended by striking out the word ``and''
at the end of clause (D), by adding the word
``and'' at the end of clause (E) and by adding
the following after clause (E):
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(2) Subsection 56(1) of the Act is amended
by adding the following after paragraph
(a):
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Benefits under
CPP/QPP
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(3) The portion of subsection 56(8) of the
Act before paragraph (b) is replaced by the
following:
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CPP/QPP
benefits for
previous years
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(8) Notwithstanding subsection (1), where
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(4) Subsections (1) and (2) apply to the
1997 and subsequent taxation years, except
that clause 56(1)(a)(i)(F) of the Act, as
enacted by subsection (1), does not apply to
benefits received before August 1997 by a
taxpayer in respect of the death of an
individual if the taxpayer is an estate that
arose on or as a consequence of the death of
the individual.
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(5) Subsection (3) applies to amounts
received by an individual after 1994, other
than an individual to whom tax has been
remitted under subsection 23(2) of the
Financial Administration Act in respect of
the amounts referred to in paragraph
56(8)(a) of the Income Tax Act, as enacted
by subsection (3).
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10. (1) Paragraph (d) of the definition
``earned income'' in subsection 63(3) of the
English version of the Act is replaced by the
following:
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(2) Subsection (1) applies to amounts
received after 1994.
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11. (1) The portion of section 64 of the Act
before paragraph (a) is replaced by the
following:
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Attendant care
expenses
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64. If a taxpayer in respect of whom an
amount may be deducted because of section
118.3 for a taxation year files with the
taxpayer's return of income (other than a
return of income filed under subsection 70(2),
paragraph 104(23)(d) or 128(2)(e) or
subsection 150(4)) for the year a prescribed
form containing prescribed information, there
may be deducted in computing the taxpayer's
income for the year the lesser of
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(2) Section 64 of the Act is amended by
adding the word ``and'' at the end of
paragraph (a), by striking out the word
``and'' at the end of paragraph (b) and by
repealing paragraph (c).
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(3) Subsections (1) and (2) apply to the
1997 and subsequent taxation years.
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12. (1) Paragraph 72(1)(c) of the Act is
replaced by the following:
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(2) Subsection (1) applies to the 1997 and
subsequent taxation years.
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13. (1) Paragraph 75(3)(c.1) of the Act is
replaced by the following:
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(2) Subsection (1) applies to taxation
years that end after February 22, 1994.
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14. (1) Paragraphs 81(1)(o) and (p) of the
Act are repealed.
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(2) Subsection (1) applies to the 1998 and
subsequent taxation years.
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15. (1) Subsection 87(2) of the Act is
amended by adding the following after
paragraph (m):
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Gift of non- qualifying security
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(2) Subsection (1) applies to the 1997 and
subsequent taxation years.
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16. (1) Subsection 88(1) of the Act is
amended by adding the following after
paragraph (e.6):
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(2) Subsection (1) applies after July 1997.
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17. (1) Clause (a)(i)(A) of the definition
``capital dividend account'' in subsection
89(1) of the Act is replaced by the following:
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(2) Clause (a)(ii)(A) of the definition
``capital dividend account'' in subsection
89(1) of the Act is replaced by the following:
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(3) The definition ``public corporation''
in subsection 89(1) of the Act is replaced by
the following:
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``public
corporation'' « société publique »
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``public corporation'' at any particular time
means
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