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Bill C-28

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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.

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