Bill C-23

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R.S., c. 1 (5th Supp.)	INCOME TAX ACT
	Amendments
	130. (1) Paragraph (c) of the definition ``résidence principale'' in section 54 of the French version of the Income Tax Act is amended by replacing ``enfant marié'' with ``enfant marié, vivant en union de fait''.
	(2) Clause (c.1)(ii)(B) of the definition ``résidence principale'' in section 54 of the French version of the Act is amended by replacing ``un conjoint, un ancien conjoint'' with ``un époux ou un conjoint de fait, un ex-époux ou un ancien conjoint de fait''.
	131. (1) Subparagraph (b)(i) of the description of B in subsection 118(1) of the Act is replaced by the following:
	(i) is
	(A) a person who is unmarried and who does not live in a common-law partnership, or
	(B) a person who is married or in a common-law partnership , who neither supported nor lived with their spouse or common law-partner and who is not supported by that spouse or common-law partner , and
	(2) Subclause 118(1)(b.1)(ii)(B)(II) of the French version of the Act is replaced by the following:
	(II) le revenu de l'autre particulier pour l'année ou, si ce dernier est l'époux ou le conjoint de fait du particulier et les deux personnes vivent séparées à la fin de l'année en raison de l'échec de leur mariage ou de leur union de fait , son revenu pour l'année pendant qu'il était marié ou qu'il vivait en union de fait et n'était pas ainsi séparé,
	(3) Paragraph 118(4)(a.1) of the Act is replaced by the following:
	(a.1) no amount may be deducted under subsection (1) because of paragraph (b) of the description of B in subsection (1) by an individual for a taxation year for a person in respect of whom an amount is deducted because of paragraph (a) of that description by another individual for the year if, throughout the year, the person and that other individual are married to each other or in a common-law partnership with each other and are not living separate and apart because of a breakdown of their marriage or the common-law partnership, as the case may be ;
	132. Clause 118.3(2)(a)(ii)(B) of the Act is replaced by the following:
	(B) in the case of a deduction referred to in clause (i)(A), the individual were not married or not in a common-law partnership , and
	133. The portion of section 118.8 of the Act before the formula is replaced by the following:
Transfer of unused credits to spouse or common-law partner	118.8 For the purpose of computing the tax payable under this Part for a taxation year by an individual who, at any time in the year, is a married person or a person who is in a common-law partnership (other than an individual who, by reason of a breakdown of their marriage or common-law partnership , is living separate and apart from the individual's spouse or common-law partner at the end of the year and for a period of 90 days commencing in the year), there may be deducted an amount determined by the formula
	134. (1) The definition ``family'' in subsection 143(4) of the Act is replaced by the following:
``family'' « famille »	``family'' means,
	(a) in the case of an adult who is unmarried and who is not in a common-law partnership , that person and the person's children who are not adults, not married and not in a common-law partnership , and
	(b) in the case of an adult who is married or in a common-law partnership , that person and the person's spouse or common-law partner and the children of either or both of them who are not adults, not married and not in a common-law partnership
	but does not include an individual who is included in any other family or who is not a member of the congregation in which the family is included;
	(2) Paragraph (b) of the definition ``member of the congregation'' in subsection 143(4) of the Act is replaced by the following:
	(b) a child who is unmarried and not in a common-law partnership , other than an adult, of an adult referred to in paragraph (a), if the child lives with the members of the congregation;
	135. (1) Subparagraph 146(21)(a)(iii) of the French version of the Act is amended by replacing ``du conjoint ou de l'ancien conjoint'' with ``de l'époux ou du conjoint de fait ou de l'ex-époux ou de l'ancien conjoint de fait''.
	(2) The portion of paragraph 146(21)(b) of the French version of the Act before subparagraph (i) is amended by replacing ``au conjoint ou à l'ancien conjoint'' with ``à l'époux ou au conjoint de fait ou à l'ex-époux ou à l'ancien conjoint de fait''.
	136. Paragraphs (b) and (c) of the definition ``annuitant'' in subsection 146.3(1) of the Act are replaced by the following:
	(b) after the death of the first individual, a spouse or common-law partner (in this definition referred to as the ``survivor '') of the first individual to whom the carrier has undertaken to make payments described in the definition ``retirement income fund'' out of or under the fund after the death of the first individual, where the survivor is alive at that time and the undertaking was made pursuant to an election described in that definition of the first individual with the consent of the legal representative of the first individual, and
	(c) after the death of the survivor , another spouse or common-law partner of the survivor to whom the carrier has undertaken, with the consent of the legal representative of the survivor , to make payments described in the definition ``retirement income fund'' out of or under the fund after the death of the survivor , where that other spouse or common-law partner is alive at that time;
	137. The portion of clause 204.81(1)(c)(v)(A) of the Act before subclause (I) is replaced by the following:
	(A) where the share is held by the specified individual in respect of the share, a spouse or common-law partner or former spouse or common-law partner of that individual or a trust governed by a registered retirement savings plan or registered retirement income fund under which that individual, spouse or common-law partner is the annuitant,
	138. Subsection 227(3) of the Act is replaced by the following:
Failure to file return	(3) Every person who fails to file a return as required by subsection (2) is liable to have the deduction or withholding under section 153 on account of the person's tax made as though the person were a person who is neither married nor in a common-law partnership and is without dependants.
	139. (1) The definition ``accord de séparation'' in subsection 248(1) of the French version of the Act is amended by replacing ``ex-conjoint'' with ``ex-époux ou ancien conjoint de fait''.
	(2) Subsection 248(1) of the Act is amended by adding the following in alphabetical order:
``common-la w partner'' « conjoint de fait »	``common-law partner'', with respect to a taxpayer at any time, means a person who cohabits at that time in a conjugal relationship with the taxpayer and
	(a) has so cohabited with the taxpayer for a continuous period of at least one year, or
	(b) would be the parent of a child of whom the taxpayer is a parent, if this Act were read without reference to paragraphs 252(1)(c) and (e) and subparagraph 252(2)(a)(iii),
	and, for the purposes of this definition, where at any time the taxpayer and the person cohabit in a conjugal relationship, they are, at any particular time after that time, deemed to be cohabiting in a conjugal relationship unless they were not cohabiting at the particular time for a period of at least 90 days that includes the particular time because of a breakdown of their conjugal relationship;
``common-la w partnership'' « union de fait »	``common-law partnership'' means the relationship between two persons who are common-law partners of each other;
	140. Subsection 251(6) of the Act is amended by striking out the word ``and'' at the end of paragraph (b) and by adding the following after that paragraph:
	(b.1) common-law partnership if one is in a common-law partnership with the other or with a person who is connected by blood relationship to the other; and
	141. (1) Paragraphs 252(2)(e) and (f) of the Act are replaced by the following:
	(e) an aunt or uncle of a taxpayer include the spouse or common-law partner of the taxpayer's aunt or uncle , as the case may be;
	(f) a great-aunt or great-uncle of a taxpayer include the spouse or common-law partner of the taxpayer's great-aunt or great-uncle, as the case may be; and
	(2) Subsection 252(4) of the Act is repealed.
	142. The Act is amended as set out in Schedule 2.
	143. Sections 130 to 142 apply to the 2001 and following taxation years.
	Transitional Provisions
	144. Where a taxpayer and a person who would have been the taxpayer's common-law partner in the 1998, 1999 or 2000 taxation year, if sections 130 to 142 applied to the applicable year, jointly elect in respect of that year by notifying the Minister of National Revenue in prescribed manner on or before their filing due date for the year in which this Act receives royal assent, those sections apply to the taxpayer and the person in respect of the applicable taxation year and subsequent taxation years.
	145. Paragraphs 56(1)(b) and 60(b) of the Income Tax Act do not apply to amounts paid or payable by a person for the maintenance of a taxpayer pursuant to an order or a written agreement, made before the coming into force of this section, unless the person and the taxpayer jointly elect to have those paragraphs apply to those amounts for the 2001 and following taxation years by notifying the Minister of National Revenue in prescribed manner on or before their filing due date for the year in which this Act receives royal assent.
	146. Despite subsections 152(4) to (5) of the Income Tax Act, the Minister of National Revenue may make any assessment or reassessment and additional assessment of tax, interest and penalties and may make any determinations and redeterminations that are necessary to give effect to section 144 for any taxation year.
R.S., c. 2 (5th Supp.)	INCOME TAX APPLICATION RULES
	147. (1) Subsection 20(1.1) of the Income Tax Application Rules is amended by replacing ``spouse'' with ``spouse or common-law partner'', with any grammatical changes that the circumstances require.
	(2) Subject to subsection (3), subsection (1) applies to the 2001 and following taxation years.
	(3) Where a taxpayer and a person have jointly elected pursuant to section 144 of this Act in respect of the 1998, 1999 or 2000 taxation years, subsection (1) applies to the taxpayer and the person in respect of the applicable taxation year and subsequent taxation years.
R.S., c. I-5	INDIAN ACT
R.S., c. 32 (1st Supp.), s. 1(1)	148. *(1) The definition ``child'' in subsection 2(1) of the Indian Act* is replaced by the following:**
``child'' « enfant »	``child'' includes a legally adopted child and a child adopted in accordance with Indian custom;
	(2) Subsection 2(1) of the Act is amended by adding the following in alphabetical order:
``common-la w partner'' « conjoint de fait »	``common-law partner'', in relation to an individual, means a person who is cohabiting with the individual in a conjugal relationship, having so cohabited for a period of at least one year;
``survivor'' « survivant »	``survivor'', in relation to a deceased individual, means their surviving spouse or common-law partner;
	149. (1) Paragraph 48(3)(b) of the Act is replaced by the following:
	(b) the Minister may direct that the survivor shall have the right to occupy any lands in a reserve that were occupied by the deceased at the time of death.
	(2) Subsection 48(5) of the Act is replaced by the following:
Distribution to parents	(5) Where an intestate dies leaving no survivor or issue, the estate shall go to the parents of the deceased in equal shares if both are living, but if either of them is dead the estate shall go to the surviving parent .
	(3) Subsection 48(12) of the Act is replaced by the following:
No community of property	(12) There is no community of real or personal property situated in a reserve.
	(4) Subsection 48(15) of the Act is replaced by the following:
Equal application to men and women	(15) This section applies in respect of an intestate woman as it applies in respect of an intestate man.
	150. The Act is amended by adding the following after section 50:
Regulations	50.1 The Governor in Council may make regulations respecting circumstances where more than one person qualifies as a survivor of an intestate under section 48.
Replacement of ``widow'' with ``survivor''	151. The Act is amended by replacing ``widow'' with ``survivor'' in the following provisions:
	(a) subsections 48(1) and (2);
	(b) paragraph 48(3)(a);
	(c) subsection 48(4); and
	(d) subsections 48(6) and (7).
Replacement of ``spouse'' with ``spouse or common-law partner''	152. The Act is amended by replacing ``spouse'' and ``spouses'' with ``spouse or common-law partner'' and ``spouses or common-law partners'', respectively, in the following provisions:
	(a) section 68; and
	(b) paragraph 81(1)(p.2).

Bill C-23

INCOME TAX ACT

Amendments

Transitional Provisions

INCOME TAX APPLICATION RULES

INDIAN ACT