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Bill C-43

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    (a) to undertake an investing of its funds because of its acquisition and holding of its interest as a member of the particular partnership; and

    (b) not to carry on any business or other activity of the particular partnership.

(2) Subsection (1) applies after 1992.

118. (1) Section 256 of the Act is amended by adding the following after subsection (6):

Simultaneous control

(6.1) For the purposes of this Act and for greater certainty,

    (a) where a corporation (in this paragraph referred to as the ``subsidiary'') would be controlled by another corporation (in this paragraph referred to as the ``parent'') if the parent were not controlled by any person or group of persons, the subsidiary is controlled by

      (i) the parent, and

      (ii) any person or group of persons by whom the parent is controlled; and

    (b) where a corporation (in this paragraph referred to as the ``subject corporation'') would be controlled by a group of persons (in this paragraph referred to as the ``first-tier group'') if no corporation that is a member of the first-tier group were controlled by any person or group of persons, the subject corporation is controlled by

      (i) the first-tier group, and

      (ii) any group of one or more persons comprised of, in respect of every member of the first-tier group, either the member, or a person or group of persons by whom the member is controlled.

Application to control in fact

(6.2) In its application to subsection (5.1), subsection (6.1) shall be read as if the references in subsection (6.1) to ``controlled'' were references to ``controlled, directly or indirectly in any manner whatever,''.

(2) Subsection (1) applies after November 1999.

119. (1) Subparagraph 258(3)(b)(ii) of the Act is replaced by the following:

      (ii) was issued before 8:00 p.m. Eastern Daylight Saving Time, June 18, 1987 and is not deemed by subsection 112(2.22) to have been issued after that time

(2) Subsection (1) applies in respect of dividends received after 1998.

PART 2

R.S., c. 2 (5th Supp.)

INCOME TAX APPLICATION RULES

120. (1) Subsection 26(30) of the Income Tax Application Rules is replaced by the following:

Additions to taxable Canadian property

(30) Subsections (1.1) to (29) do not apply to a disposition by a non-resident person of a property

    (a) that the person last acquired before April 27, 1995;

    (b) that would not be a taxable Canadian property immediately before the disposition if section 115 of the amended Act were read as it applied to dispositions that occurred on April 26, 1995; and

    (c) that would be a taxable Canadian property immediately before the disposition if section 115 of the amended Act were read as it applied to dispositions that occurred on January 1, 1996.

(2) Subsection (1) applies to dispositions that occur after October 1, 1996.

PART 3

1998, c. 19

INCOME TAX AMENDMENTS ACT, 1997

121. (1) Section 206 of the Income Tax Amendments Act, 1997 is amended by replacing the references to ``1999'' with references to ``2001''.

(2) Subsection (1) applies to taxation years that end after 1998.

PART 4

1999, c. 22

INCOME TAX AMENDMENTS ACT, 1998

122. (1) Subsection 82(8) of the Income Tax Amendments Act, 1998 is replaced by the following:

(8) Subsection (4) applies after February 24, 1998 except that, if on that day an individual who would, but for a tax treaty (as defined in subsection 248(1) of the Income Tax Act, as amended by this Act), be resident in Canada for the purposes of the Income Tax Act is, under the tax treaty, resident in another country, subsection (4) does not apply to the individual until the first time after February 24, 1998 at which the individual becomes, under a tax treaty, resident in a country other than Canada.

(2) Subsection (1) is deemed to have come into force on June 17, 1999.

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