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Bill C-72

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(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 .

(4) Subsection 155(8) of the Act is repealed.

(5) Section 155 of the Act is amended by adding the following after subsection (9):

(10) At any time on or after the day of the death of a person described in paragraph (4)(c) in respect of a corporation and before the third anniversary of that day,

    (a) the estate of the deceased person is deemed to be a person described in paragraphs (4)(b) and (c) who is related to each person who, throughout the period that begins at the end of June 20, 1996 and ends at the time of death, was related to the deceased person;

    (b) notwithstanding subsection (7), the estate is deemed not to be a newly related person in respect of the corporation;

    (c) notwithstanding subsection (11), the acquisition of shares of the corporation's capital stock by the estate from the deceased person is deemed to be a permitted acquisition; and

    (d) the estate is deemed not to be a trust for the purposes of subparagraph (9)(a)(i) of this Act and paragraphs (b) and (e) of the definition ``specified shareholder'' in subsection 248(1) of the Income Tax Act.

(11) The definitions in this subsection apply in subsections (4) to (10) and this subsection.

``permitted acquisition''
« acquisition autorisée »

``permitted acquisition'' means an acquisition by a particular person of a share of a class of the capital stock of a corporation that was

      (a) held, at each particular time after June 20, 1996 and before the time at which the particular person acquired it, or

      (b) issued after June 20, 1996 by the corporation as a stock dividend and held, at each particular time after the time the share was issued and before the time at which the particular person acquired it,

    by the particular person or by a person who was related to the particular person throughout the period that begins at the end of June 20, 1996 and ends at the particular time if, immediately after the time at which the particular person acquires the share, the total percentage of the issued shares of that class held by the particular person and persons related to the particular person (or in the case of acquisitions before August 14, 1998, by the particular person and persons with whom the particular person did not deal at arm's length immediately after the acquisition) does not exceed the permitted percentage for the particular person in respect of that class of shares.

``permitted percentage''
« pourcentage autorisé »

``permitted percentage'' for a particular person in respect of any class of shares of the capital stock of a corporation means

      (a) in respect of acquisitions of shares before August 14, 1998, the greatest percentage that is the total percentage of the issued shares of a class of the capital stock of the corporation held at the end of June 20, 1996 by the particular person and persons with whom the particular person did not at that time deal at arm's length; and

      (b) in any other case, the greater of

        (i) the greatest percentage that is the total percentage of the issued shares of a class of the capital stock of the corporation held at the end of June 20, 1996 by the particular person and persons related to the particular person, and

        (ii) the greatest percentage that is the total percentage of the issued shares of a class of the capital stock of the corporation held at the beginning of August 14, 1998 by the particular person and persons related to the particular person.

``related persons''
« personnes liées »

``related persons'' and persons related to each other have, for purposes other than applying the definitions ``permitted acquisition'' and ``permitted percentage'' in respect of acquisitions of shares before August 14, 1998, the meaning that would be assigned by section 251 of the Act if paragraph 251(2)(a) of the Act were read as follows:

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