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Bill C-69

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    (a) to mergers that occur after April 26, 1995, other than a merger that occurs pursuant to a written agreement made before that day where the corporate entity formed by the merger so elects before the end of the sixth month after the month in which this Act is assented to; and

    (b) to a merger that occurred after 1992 and before April 26, 1995 where the corporate entity formed by the merger so elects before the end of the sixth month after the month in which this Act is assented to.

(10) Paragraph 256(7)(c) of the Act, as enacted by subsection (4), applies to ex changes that occur after April 26, 1995, other than an exchange that occurs pur suant to a written agreement made before that day.

(11) Paragraphs 256(7)(d) and (e) of the Act, as enacted by subsection (4), apply after April 26, 1995, except that, with respect to acquisitions of shares that occur before June 20, 1996 or pursuant to a written agreement made before June 20, 1996, subparagraph 256(7)(e)(ii) of the Act, as enacted by subsection (4), shall be read as follows:

      (ii) all or substantially all of the fair market value of the shares of the acquir ing corporation's capital stock is attribut able to the shares acquired by it at that time,

Exception to coming-
into-force

156. (1) Subsections 7(4), 8(5), subsection 18(13) of the Act, as enacted by subsection 12(2) and subsections 19(1), (2), (6) and (7), 24(1) and (2), 25(1), 41(3) to (5), 45(1) and 49(1) and (2) do not apply to the disposition of property by a person or partnership (in this subsection and subsection (2) referred to as the ``transferor'') that occurred before 1996

    (a) to a person who was obliged on April 26, 1995 to acquire the property pursuant to the terms of an agreement in writing made on or before that day; or

    (b) in a transaction, or as part of a series of transactions, the arrangements for which, evidenced in writing, were sub stantially advanced before April 27, 1995, other than a transaction or series a main purpose of which can reasonably be considered to have been to enable an unrelated person to obtain the benefit of

      (i) any deduction in computing income, taxable income, taxable income earned in Canada or tax payable under the Act, or

      (ii) any balance of undeducted outlays, expenses or other amounts.

Election

(2) Notwithstanding subsection (1), sub section 18(13) of the Act, as enacted by subsection 12(2), and the other subsections of this Act referred to in subsection (1) apply to a disposition in respect of which the transferor has filed with the Minister of National Revenue before the end of the third month after the month in which this Act is assented to an election in writing to have those subsections apply.

Interpreta-
tion

(3) For the purpose of subsection (1),

    (a) a person shall be considered not to be obliged to acquire property where the person can be excused from the obliga tion if there is a change to the Act or if there is an adverse assessment under the Act;

    (b) an ``unrelated person'' means any person that was not, or a partnership any member of which was not, related (other wise than because of paragraph 251(5)(b) of the Act) to the transferor at the time of the disposition; and

    (c) a person is deemed to be related to a partnership of which that person is a majority interest partner.

PART II

R.S., c. 2 (5th Supp.); 1994, cc. 7, 21; 1995, cc. 3, 21

INCOME TAX APPLICATION RULES

157. (1) The portion of paragraph 20(1)(c) of the Income Tax Application Rules before subparagraph (ii) is replaced by the following:

    (c) where the disposition occurred because of an election under subsection 110.6(19) of the amended Act,

      (i) for the purposes of that Act (other than paragraphs 8(1)(j) and (p) and sections 13 and 20 of that Act), the taxpayer is deemed to have reacquired the property at a capital cost equal to

        (A) where the amount designated in respect of the property in the election did not exceed 110% of the fair market value of the property at the end of February 22, 1994, the taxpayer's proceeds of disposition determined under paragraph (a) in respect of the disposition of the property that im mediately preceded the reacquisition minus the amount, if any, by which the amount designated in respect of the property in the election exceeded that fair market value, and

        (B) in any other case, the amount otherwise determined under subsec tion 110.6(19) of that Act to be the cost to the taxpayer of the property im mediately after the reacquisition re ferred to in that subsection minus the amount by which the fair market value of the property on valuation day ex ceeded the capital cost of the property at the time it was last acquired before 1972, and

(2) Subsection (1) applies to the 1994 and subsequent taxation years.

158. (1) Clause 26(5)(c)(ii)(A) of the Rules is replaced by the following:

        (A) a capital loss or an amount that would, but for paragraph 40(2)(e) and subsection 85(4) of the amended Act (as that Act read in its application to property disposed of on or before April 26, 1995) and paragraphs 40(2)(e.1) and (e.2) and subsection 40(3.3) of the amended Act , be a capital loss from the disposition to a corporation after 1971 of the property by a person who owned the property before it became vested in the subsequent owner, or

(2) The portion of subsection 26(25) of the Rules before paragraph (a) is replaced by the following:

Bond conversion

(25) Where, after May 6, 1974, there has been an exchange to which section 51.1 of the amended Act applies on which a taxpayer has acquired a bond of a debtor (in this subsection referred to as the ``new bond'') in exchange for another bond of the same debtor (in this subsection referred to as the ``old bond'') owned by the taxpayer on December 31, 1971 and thereafter without interruption until im mediately before the exchange, notwithstand ing any other provision of this Act or of the amended Act, for the purposes of subsection 88(2.1) of the amended Act and of determin ing the cost to the taxpayer and the adjusted cost base to the taxpayer of the new bond,

(3) Section 26 of the Rules is amended by adding the following after subsection (29):

Additions to taxable Canadian property

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

(4) Subsections (1) and (3) apply to dispositions that occur after April 26, 1995.

(5) Subsection (2) applies to exchanges that occur after October 1994.

PART III

R.S., c. B-3; R.S., cc. 27, 31 (1st Supp.), cc. 3, 27 (2nd Supp.); 1990, c. 17; 1991, c. 46; 1992, cc. 1, 27; 1993, cc. 28, 34; 1994, c. 26; 1995, c. 1; 1996, cc. 6, 23

BANKRUPTCY AND INSOLVENCY ACT

1992, c. 27, s. 33; 1996, c. 23, s. 168

159. (1) The portion of subsection 67(3) of the Bankruptcy and Insolvency Act before subparagraph (a)(ii) is replaced by the following:

Exceptions

(3) Subsection (2) does not apply in respect of subsections 227(4) and (4.1) of the Income Tax Act, subsections 23(3) and (4) of the Canada Pension Plan or subsections 86(2) and (2.1) of the Employment Insurance Act, or in respect of provincial legislation where

    (a) either

      (i) the provincial legislation imposes a tax similar in nature to the tax imposed by the Income Tax Act, and the provision of the provincial legislation that creates the deemed trust is substantially similar to subsections 227(4) and (4.1) of the Income Tax Act, or

(2) Subsection (1) is deemed to have come into force on June 15, 1994, except that, in the application after June 14, 1994 and before June 30, 1996 of the portion of subsection 67(3) of the Act before para graph (a), as enacted by subsection (1), the reference to ``subsections 86(2) and (2.1) of the Employment Insurance Act'' shall be read as a reference to ``subsections 57(2) and (3) of the Unemployment Insurance Act''.

PART IV

R.S., c. C-8; R.S., cc. 6, 41 (1st Supp.), cc. 5, 13, 27, 30 (2nd Supp.), cc. 18, 38 (3rd Supp.), cc. 1, 46, 51 (4th Supp.); 1990, c. 8; 1991, cc. 14, 44, 49; 1992, cc. 1, 2, 27, 48; 1993, cc. 24, 27, 28; 1994, cc. 13, 21; 1995, c. 33; 1996, cc. 11, 16, 23

CANADA PENSION PLAN

160. (1) Section 5 of the Canada Pension Plan is renumbered as subsection 5(1) and is amended by adding the following:

Delegation

(2) The Minister may authorize an officer or a class of officers to exercise powers or perform duties of the Minister under this Part.

(2) Any power or duty of the Minister of National Revenue delegated to an officer or a class of officers by a regulation made under subsection 40(2) of the Act before the day on which this Act is assented to contin ues to be delegated to that officer or that class of officers until an authorization by the Minister made under subsection 5(2) of the Act, as enacted by subsection (1), changes the delegation of that power or duty.

1994, c. 21, s. 123

161. (1) Subsection 23(3) of the Act is replaced by the following:

Where amount deducted not remitted

(3) Where an employer has deducted an amount from the remuneration of an em ployee as or on account of any contribution required to be made by the employee but has not remitted the amount to the Receiver General, the employer is deemed to hold the amount so deducted in trust, separate and apart from the employer's own property , for Her Majesty and for payment to Her Majesty in the manner and at the time provided under this Act.

Extension of trust

(4) Notwithstanding the Bankruptcy and Insolvency Act, where at any time an amount deemed by subsection (3) to be held by an employer in trust for Her Majesty is not paid to Her Majesty in the manner and at the time provided under this Act, property of the employer equal in value to the amount so deemed to be held in trust is deemed

    (a) to be held, from the time the amount was deducted by the employer, in trust, separate and apart from the employer's own proper ty, for Her Majesty and for payment to Her Majesty; and

    (b) to form no part of the estate of the employer from the time the amount was so deducted, whether the amount or property has in fact been kept separate and apart from the employer's own property or estate.

(2) Subsection (1) is deemed to have come into force on June 15, 1994.

161.1 Section 24 of the Act is amended by adding the following after subsection (2):

Electronic records

(2.1) Every employer required by this section to keep records who does so electroni cally shall retain them in an electronically readable format for the retention period referred to in subsection (2).

Exemption

(2.2) The Minister may, on such terms and conditions as are acceptable to the Minister, exempt an employer or a class of employers from the requirement in subsection (2.1).

R.S., c. 5 (2nd Supp.), s. 2

161.2 (1) Subsection 25(7) of the Act is amended by adding the word ``and'' at the end of paragraph (a) and by repealing paragraphs (c) and (d).

R.S., c. 5 (2nd Supp), s. 2

(2) Subsection 25(10) of the Act is re placed by the following:

Powers on review

(10) On hearing an application under sub section (9), a judge may cancel the authoriza tion previously granted if the judge is not then satisfied that the conditions in paragraphs (7)(a) and (b) have been met and the judge may confirm or vary the authorization if satisfied that those conditions have been met.

R.S., c. 5 (2nd Supp.), s. 2; 1994, c. 13, par. 8(1)(a)

(3) Subsection 25(12) of the Act is re placed by the following:

Copies as evidence

(12) Where any document is inspected, audited , examined or provided under this section, the person by whom it is inspected, audited or examined or to whom it is provided or any officer of the Department of National Revenue may make, or cause to be made, one or more copies thereof and, in the case of an electronic document, make or cause to be made a print-out of the electronic document, and any document purporting to be certified by the Minister or an authorized person to be a copy of the document, or to be a print-out of an electronic document, made pursuant to this subsection is evidence of the nature and content of the original document and has the same probative force as the original document would have if it were proven in the ordinary way.

(4) Subsection (3) applies to copies and print-outs made after this Act is assented to.

R.S., c. 51 (4th Supp.), s. 9

162. (1) Subsection 28(1) of the Act is replaced by the following:

Appeal to Tax Court of Canada

28. (1) An employee or employer affected by a determination by or a decision on an appeal to the Minister under section 27, or the representative of either of them, may, within ninety days after the determination or decision is communicated to that employee or employ er, or within such longer time as the Tax Court of Canada on application made to it within those ninety days allows , appeal from the determination or decision to that Court in accordance with the provisions of the Tax Court of Canada Act .

R.S., c. 51 (4th Supp.), s. 9

(2) Subsection 28(2) of the Act is replaced by the following:

Decision

(2) On an appeal under this section, the Tax Court of Canada may reverse, affirm or vary the determination, may vacate, confirm or vary the assessment, or may refer the matter back to the Minister for reconsideration and reassessment and shall then

    (a) notify in writing the parties to the appeal of its decision; and

    (b) give reasons for its decision but, except where the Court deems it advisable in a particular case to give reasons in writing, the reasons given by it need not be in writing.

(3) Subsection (1) comes into force on a day to be fixed by order of the Governor in Council.

163. Subsection 40(2) of the Act is re pealed.

1992, c. 48, s. 28(1); 1996, c. 11, par. 97(1)(b)

164. Subsection 104(4.1) of the Act is replaced by the following:

Communi-
cation of information

(4.1) Any information obtained by an officer, clerk or employee in the Department of Human Resources Development pursuant to this Act or any regulation may be made available to any officer, clerk or employee in that Department for the purposes of the administration of the Family Allowances Act or the Old Age Security Act.

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