Bill C-70

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	PART V
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	INCOME TAX ACT
	*267. (1) Paragraph 6(1)(e.1) of the In come Tax Act* is repealed.**
	(2) Subsection 6(7) of the Act is replaced by the following:
Cost of property or service	(7) To the extent that the cost to a person of purchasing a property or service or an amount payable by a person for the purpose of leasing property is taken into account in determining an amount required under this section to be included in computing a taxpayer's income for a taxation year, that cost or amount payable , as the case may be , shall include any tax that was payable by the person in respect of the property or service or that would have been so payable if the person were not exempt from the payment of that tax because of the nature of the person or the use to which the property or service is to be put.
	(3) Subsections (1) and (2) apply to the 1996 and subsequent taxation years.
	268. (1) Paragraph 12(1)(y) of the Act is replaced by the following:
Automobile provided to partner	(y) where the taxpayer is an individual who is a member of a partnership or an employee of a member of a partnership and the partnership makes an automobile available in the year to the taxpayer or to a person related to the taxpayer, the amounts that would be included by reason of paragraph 6(1)(e) in the income of the taxpayer for the year if the taxpayer were employed by the partnership;
	(2) Subsection (1) applies to the 1996 and subsequent taxation years.
	269. (1) Subsections 15(1.3) and (1.4) of the Act are replaced by the following:
Cost of property or service	(1.3) To the extent that the cost to a person of purchasing a property or service or an amount payable by a person for the purpose of leasing property is taken into account in determining an amount required under this section to be included in computing a taxpay er's income for a taxation year, that cost or amount payable , as the case may be , shall include any tax that was payable by the person in respect of the property or service or that would have been so payable if the person were not exempt from the payment of that tax because of the nature of the person or the use to which the property or service is to be put.
	(2) Subsection 15(5) of the Act is replaced by the following:
Automobile benefit	(5) For the purposes of subsection (1), the value of the benefit to be included in comput ing a shareholder's income for a taxation year with respect to an automobile made available to the shareholder, or a person related to the shareholder, by a corporation shall (except where an amount is determined under sub paragraph 6(1)(e)(i) in respect of the automo bile in computing the shareholder's income for the year) be computed on the assumption that subsections 6(1), (1.1), (2) and (7 ) apply, with such modifications as the circumstances require, and as though the references therein to ``the employer of the taxpayer'', ``the taxpayer's employer'' and ``the employer'' were read as ``the corporation''.
	(3) Subsections (1) and (2) apply to the 1996 and subsequent taxation years.
	PART VI
1992, c. 18	DEBT SERVICING AND REDUCTION ACCOUNT ACT
	*270. Section 5 of the Debt Servicing and Reduction Account Act* is amended by adding the following after paragraph (a):**
	(a.1) authorized under section 8.4 or 8.5 of the Federal-Provincial Fiscal Arrange ments Act;
	PART VII
1990, c. 45	AN ACT TO AMEND THE EXCISE TAX ACT, THE CRIMINAL CODE, THE CUSTOMS ACT, THE CUSTOMS TARIFF, THE EXCISE ACT, THE INCOME TAX ACT, THE STATISTICS ACT AND THE TAX COURT OF CANADA ACT
	271. (1) Subsection 12(2) of An Act to amend the Excise Tax Act, the Criminal Code, the Customs Act, the Customs Tariff, the Excise Act, the Income Tax Act, the Statistics Act and the Tax Court of Canada Act, being chapter 45 of the Statutes of Canada, 1990, 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) with respect to any supply referred to in section 182 of the Act, as enacted by subsection (1), made before 1991, except that no tax is payable under Part IX of the Act in respect of any amount paid or forfeited, or any debt or other obligation reduced or extinguished, before 1991.
	(2) Subsection (1) is deemed to have come into force on April 24, 1996.
	PART VIII
1994, c. 9	AN ACT TO AMEND THE EXCISE TAX ACT AND A RELATED ACT
	272. Subsection 4(2) of An Act to amend the Excise Tax Act and a related Act, being chapter 9 of the Statutes of Canada, 1994, 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).
	PART IX
1996, c. 21	INCOME TAX BUDGET AMENDMENT ACT
	*273. Section 69 of the Income Tax Budget Amendment Act, being chapter 21 of the Statutes of Canada, 1996, is replaced by the following:*
	69. For the purpose of determining if a partnership to which section 68 applies is, for the purposes of Part IX of the Excise Tax Act, a financial institution throughout its taxation year that begins on January 1, 1997, paragraphs 149(1)(b) and (c) of that Act shall be read as follows:
	(b) the total of all amounts, each of which is an amount
	(i) that would be included in computing, for the purposes of the Income Tax Act, the person's income for the period that is the person's taxation year immediately preceding the particular year if it were a fiscal period of the business of the person for the purposes of that Act, and
	(ii) that is interest, a dividend (other than a dividend in kind or a patronage divi dend) or a separate fee or charge for a financial service
	exceeds $10,000,000; or
	(c) the person was a financial institution throughout that period otherwise than be cause of paragraph (a) .