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Bill C-72

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	PART 4
R.S., c. O-9; R.S., c. 34 (1st Supp.), cc. 1, 51 (4th Supp.); 1990, c. 39; 1991, c. 44; 1992, cc. 24, 48; 1995, c. 33; 1996, cc. 11, 18, 21, 23; 1997, c. 40; 1998, cc. 19, 21	OLD AGE SECURITY ACT
1998, c. 21, s. 105(1)	*87. (1) The definition ``income'' in section 2 of the Old Age Security Act* is replaced by the following:**
``income'' « revenu »	``income'' of a person for a calendar year means the person's income for the year, computed in accordance with the Income Tax Act, except that
	(a) there shall be deducted from the person's income from office or employment for the year
	(i) a single amount in respect of all offices and employments of that person equal to the lesser of five hundred dollars and one fifth of the person's income from office or employment for the year,
	(ii) the amount of employee's premiums paid by the person during the year under the Employment Insurance Act, and
	(iii) the amount of employee's contributions made by the person during the year under the Canada Pension Plan or a provincial pension plan as defined in section 3 of that Act,
	(b) there shall be deducted from the person's self-employment earnings for the year the amount of contributions made in respect of those self-employed earnings by the person during the year under the Canada Pension Plan or a provincial pension plan as defined in section 3 of that Act, and
	(c) there shall be deducted from the person's income for the year, to the extent that those amounts have been included in computing that income,
	(i) the amount of any benefit under this Act and any similar payment under a law of a provincial legislature,
	(ii) the amount of any death benefit under the Canada Pension Plan or a provincial pension plan as defined in section 3 of that Act, and
	(iii) the amount of any social assistance payment made on the basis of a means, a needs or an income test by a registered charity as defined in subsection 248(1) of the Income Tax Act or under a program provided for by an Act of Parliament or a provincial legislature that is neither a program prescribed under the Income Tax Act nor a program under which the amounts referred to in subparagraph (i) are paid;
	(2) The definition ``income'' in section 2 of the Act, as enacted by subsection (1), is amended by striking out the word ``and'' at the end of paragraph (b), by adding the word ``and'' at the end of paragraph (c) and by adding the following after paragraph (c):
	(d) there shall be deducted from the person's income for the year three times the amount, if any, by which
	(i) the total of any amounts that may be deducted under section 121 of the Income Tax Act in computing the person's tax payable for the year
	exceeds
	(ii) the person's ``tax for the year otherwise payable under this Part'' (within the meaning assigned by subsection 126(7) of the Income Tax Act for the purposes of paragraph 126(1)(b) of that Act) for the year;
	*(3) Subsection (1) applies for the purpose of determining benefits payable under the Old Age Security Act* for months after June 1999.**
	*(4) Subsection (2) applies for the purpose of determining benefits payable under the Old Age Security Act* for months after June 2000.**
1998, c. 21, s. 108(1)	88. (1) The portion of subsection 12(2) of the Act after paragraph (b) is replaced by the following:
	minus one dollar for each full two dollars of the pensioner's monthly base income.
1998, c. 21, s. 108(3)	(2) The description of D in subsection 12(5) of the Act is replaced by the following:
	D is the pensioner's monthly base income rounded, where it is not a multiple of two dollars, to the next lower multiple of two dollars.
1998, c. 21, s. 108(5)	(3) Subparagraph (ii) of the description of B in paragraph 12(6)(b) of the Act is replaced by the following:
	(ii) rounded, where that product is not a multiple of four dollars, to the next higher multiple of four dollars; and
1998, c. 21, s. 116(2)	89. (1) Paragraph (b) of the description of B in the definition ``residual family income'' in subsection 22(1) of the Act is replaced by the following:
	(b) rounded, where that product is not a multiple of four dollars, to the next higher multiple of four dollars;
1998, c. 21, s. 116(2)	(2) Paragraph (b) of the description of B in the definition ``residual income of the widow'' in subsection 22(1) of the Act is replaced by the following:
	(b) rounded, where that product is not a multiple of four dollars, to the next higher multiple of four dollars;
1998, c. 21, s. 116(2)	(3) The definitions ``rounded pension equivalent'' and ``rounded supplement equivalent'' in subsection 22(1) of the Act are replaced by the following:
``rounded pension equivalent'' « valeur arrondie de la pension »	``rounded pension equivalent'' means the pension equivalent rounded to the next higher multiple of three dollars when the pension equivalent is not a multiple of three dollars;
``rounded supplement equivalent'' « valeur arrondie du supplément »	``rounded supplement equivalent'' means the supplement equivalent rounded to the next higher multiple of one dollar when the supplement equivalent is not a multiple of one dollar;
1998, c. 21, s. 116(5)	(4) The description of D in subsection 22(2) of the Act is replaced by the following:
	D is the residual family income of the pensioner and the spouse for that month rounded, where that income is not a multiple of four dollars, to the next lower multiple of four dollars.
1998, c. 21, s. 116(7)	(5) Subparagraph 22(3)(b)(ii) of the Act is replaced by the following:
	(ii) rounded, where that product is not a multiple of four dollars, to the next higher multiple of four dollars,
1998, c. 21, s. 116(8)	(6) The description of E in paragraph 22(3)(b) of the Act is replaced by the following:
	E is the monthly family income of the pensioner and the spouse in the current payment period rounded, where that income is not a multiple of four dollars, to the next lower multiple of four dollars; and
1998, c. 21, s. 116(9)	(7) Subparagraph 22(3)(c)(ii) of the Act is replaced by the following:
	(ii) rounded, where that product is not a multiple of four dollars, to the next higher multiple of four dollars,
1998, c. 21, s. 116(10)	(8) The description of C in paragraph 22(3)(c) of the Act is replaced by the following:
	C is the residual family income of the pensioner and spouse for that month rounded, where that income is not a multiple of four dollars, to the next lower multiple of four dollars.
1998, c. 21, s. 116(12)	(9) Subparagraph 22(4)(b)(ii) of the Act is replaced by the following:
	(ii) rounded, where that product is not a multiple of four dollars, to the next higher multiple of four dollars,
1998, c. 21, s. 116(13)	(10) The description of E in paragraph 22(4)(b) of the Act is replaced by the following:
	E is the monthly income of the widow in the current payment period rounded, where that income is not a multiple of four dollars, to the next lower multiple of four dollars; and
1998, c. 21, s. 116(14)	(11) Subparagraph 22(4)(c)(ii) of the Act is replaced by the following:
	(ii) rounded, where that product is not a multiple of four dollars, to the next higher multiple of four dollars,
1998, c. 21, s. 116(15)	(12) The description of C in paragraph 22(4)(c) of the Act is replaced by the following:
	C is the residual income of the widow in respect of the month rounded, where that residual income is not a multiple of two dollars, to the next lower multiple of two dollars.
	PART 5
R.S., c. W-3; R.S., c. 7 (1st Supp.), c. 12 (2nd Supp.), cc. 20, 37 (3rd Supp.); 1990, cc. 39, 43; 1992, cc. 24, 48; 1995, cc. 17, 18; 1996, c. 11; 1998, c. 21	WAR VETERANS ALLOWANCE ACT
	90. (1) Subsection 7(1) of the War Veterans Allowance Act is amended by striking out the word ``and'' at the end of paragraph (c), by adding the word ``and'' at the end of paragraph (d) and by adding the following after paragraph (d):
	(e) paragraph (d) of the definition ``income'' in section 2 of the Old Age Security Act does not apply.
	(2) Subsection (1) comes into force on July 1, 2000.
	PART 6
1997, c. 25	INCOME TAX BUDGET AMENDMENTS ACT, 1996
	*91. (1) Subsection 69(3) of the Income Tax Budget Amendments Act, 1996, chapter 25 of the Statutes of Canada, 1997, is replaced by the following:*
	(3) Section 233.3 of the Act, as enacted by subsection (1), applies to returns for taxation years and fiscal periods that begin after 1997, except that such a return for a taxation year or fiscal period that ends in 1998 is required to be filed on or before the later of
	(a) April 30, 1999, and
	(b) the day on or before which the return is otherwise required to be filed.
	(3.1) Section 233.6 of the Act, as enacted by subsection (1), applies to returns for taxation years and fiscal periods that begin after 1995, except that
	(a) such a return for a taxation year or fiscal period that ended in 1996, 1997 or 1998 is required to be filed on or before the later of
	(i) April 30, 1998, and
	(ii) the day on or before which the return is otherwise required to be filed;
	(b) for taxation years and fiscal periods that began before 1998, subsection 233.6(2) of the Act shall be read without reference to paragraph 233.6(2)(c); and
	(c) for returns for taxation years and fiscal periods that began after 1995 and before 1998, the reference to ``specified Canadian entity'' in subsection 233.6(1) of the Act shall have the meaning that would be assigned to that expression by subsection 233.3(1) of the Act, as enacted by subsection (1), if it applied for those returns.
	(2) Subsection (1) is deemed to have come into force on April 25, 1997.
	PART 7
1998, c. 19	INCOME TAX AMENDMENTS ACT, 1997
	*92. (1) Subsection 155(2) of the Income Tax Amendments Act, 1997, chapter 19 of the Statutes of Canada, 1998, is replaced by the following:*
	(2) Subparagraph 130(3)(a)(vii) of the Act is replaced by the following:
	(vii) no person would have been a specified shareholder of the corporation in the year if
	(A) the portion of the definition ``specified shareholder'' in subsection 248(1) before paragraph (a) were read as follows:
	``specified shareholder'' of a corporation in a taxation year means a taxpayer who owns, directly or indirectly, at any time in the year, more than 25% of the issued shares of any class of the capital stock of the corporation and, for the purposes of this definition,
	(B) paragraph (a) of that definition were read as follows:
	(a) a taxpayer is deemed to own each share of the capital stock of a corporation owned at that time by a person related to the taxpayer,
	(C) that definition were read without reference to paragraph (d) of that definition,
	and
	(D) paragraph 251(2)(a) were read as follows:
	(a) an individual and
	(i) the individual's child (as defined in subsection 70(10)) who is under 19 years of age, or
	(ii) the individual's spouse;
	(2) The portion of subsection 155(4) of the Act after paragraph (a) is replaced by the following:
	(b) a particular person is a specified shareholder of the corporation in the year, and
	(c) the particular person
	(i) was a specified shareholder of the corporation on June 20, 1996, or
	(ii) both
	(A) was a specified shareholder of the corporation at any time after June 20, 1996 and before August 14, 1998, and
	(B) would have been a specified shareholder of the corporation on June 20, 1996 if subparagraph 130(3)(a)(vii) of the Act, as enacted by subsection (2), were read without reference to clauses (B) and (D),
	subparagraph 130(3)(a)(vii) of the Act, as enacted by subsection (2), does not apply to the corporation, with respect to the particular person and persons related to the particular person, except as provided in subsections (5) to (11).
	(3) Subsection 155(5) of the Act is replaced by the following:
	(5) Subsection (2) applies to a corporation that was an investment corporation on June 20, 1996 for a taxation year that begins after that day if, at any time after that day and before the end of the year, a particular person described in paragraph (4)(b) in respect of the corporation for the year contributes capital to the corporation or acquires a share of the capital stock of the corporation other than by a permitted acquisition.