Coordinating Amendments

Marginal note:Bill C-10

40. Sections 41 to 44 apply if Bill C-10, introduced in the 2nd session of the 39th Parliament and entitled the Income Tax Amendments Act, 2006 (referred to in those sections as the “other Act”), receives royal assent.

• 41. (1) If the other Act is assented to before or on the same day as the day on which this Act is assented to, then

  • (a) section 21 of this Act is deemed never to have come into force and is repealed; and

  • (b) paragraph 132.2(3)(h) of the Income Tax Act, as enacted by subsection 130(1) of the other Act, is replaced by the following:

    • (h) if a share to which paragraph (g) applies would, if this Act were read without reference to this paragraph, cease to be a qualified investment (within the meaning assigned by subsection 146(1), 146.1(1) or 146.3(1), section 204 or subsection 205(1) or 207.01(1)) as a consequence of the qualifying exchange, the share is deemed to be a qualified investment until the earlier of the day that is 60 days after the day that includes the transfer time and the time at which it is disposed of in accordance with paragraph (g);

• (2) If this Act is assented to before the day on which the other Act is assented to, then paragraph 132.2(3)(h) of the Income Tax Act, as enacted by subsection 130(1) of the other Act, is replaced by the following:

  • (h) if a share to which paragraph (g) applies would, if this Act were read without reference to this paragraph, cease to be a qualified investment (within the meaning assigned by subsection 146(1), 146.1(1) or 146.3(1), section 204 or subsection 205(1) or 207.01(1)) as a consequence of the qualifying exchange, the share is deemed to be a qualified investment until the earlier of the day that is 60 days after the day that includes the transfer time and the time at which it is disposed of in accordance with paragraph (g);

• (3) The replacement of paragraph 132.2(3)(h) of the Income Tax Act by the operation of paragraph (1)(b) or subsection (2) applies in respect of the 2009 and subsequent taxation years.

• 42. (1) On the first day on which both subsection 190(1) of the other Act and section 35 of this Act are in force, subsection 252(3) of the Income Tax Act is replaced by the following:

  • Extended meaning of “spouse” and “former spouse”

    (3) For the purposes of paragraph 56(1)(b), section 56.1, paragraphs 60(b) and (j), section 60.1, subsections 70(6) and (6.1), 73(1) and (5) and 104(4), (5.1) and (5.4), the definition “pre-1972 spousal trust” in subsection 108(1), subsection 146(16), the definition “survivor” in subsection 146.2(1), subparagraph 146.3(2)(f)(iv), subsections 146.3(14), 147(19), 147.3(5) and (7) and 148(8.1) and (8.2), the definition “small business property” in subsection 206(1), the definition “qualifying transfer” in subsection 207.01(1), and subsections 210(1) and 248(22) and (23), “spouse” and “former spouse” of a particular individual include another individual who is a party to a void or voidable marriage with the particular individual.

• (2) The replacement of subsection 252(3) of the Income Tax Act by the operation of subsection (1) applies in respect of the 2009 and subsequent taxation years.

• 43. (1) On the first day on which both subsection 191(1) of the other Act and section 36 of this Act are in force, section 253.1 of the Income Tax Act is replaced by the following:

  Marginal note:Investments in limited partnerships

  253.1 For the purposes of subparagraph 108(2)(b)(ii), paragraphs 130.1(6)(b), 131(8)(b), 132(6)(b) and 146.1(2.1)(c), subsection 146.2(4), paragraphs 146.4(5)(b) and 149(1)(o.2), the definition “private holding corporation” in subsection 191(1) and regulations made for the purposes of paragraphs 149(1)(o.3) and (o.4), if a trust or corporation holds an interest as a member of a partnership and, by operation of any law governing the arrangement in respect of the partnership, the liability of the member as a member of the partnership is limited, the member shall not, solely because of its acquisition and holding of that interest, be considered to carry on any business or other activity of the partnership.

• (2) The replacement of section 253.1 of the Income Tax Act by the operation of subsection (1) applies in respect of the 2009 and subsequent taxation years.

• 44. (1) On the first day on which both subsection 193(1) of the other Act and section 37 of this Act are in force, the portion of subsection 259(1) of the Income Tax Act before paragraph (a) is replaced by the following:

  Marginal note:Proportional holdings in trust property

  • 259. (1) For the purposes of subsections 146(6), (10) and (10.1), 146.1(2.1), 146.2(4) and 146.3(7), (8) and (9) and Parts X, X.2 and XI to XI.1, if at any time a taxpayer that is a registered investment or that is described in any of paragraphs 149(1)(r), (s), (u) to (u.2) or (x) acquires, holds or disposes of a particular unit in a qualified trust and the qualified trust elects for any period that includes that time to have this subsection apply,

• (2) The replacement of the portion of subsection 259(1) of the Income Tax Act before paragraph (a) by the operation of subsection (1) applies in respect of the 2009 and subsequent taxation years.

Conditional Amendments

Marginal note:Bill C-253

45. Sections 46 to 48 apply if Bill C-253, introduced in the 1st session of the 39th Parliament and entitled An Act to amend the Income Tax Act (deductibility of RESP contributions) (referred to in those sections as the “other Act”), receives royal assent.

46. Paragraph 60(i) of the Income Tax Act, as enacted by section 1 of the other Act, is replaced by the following:

• 47. (1) Subsection 146.1(2.01) of the Income Tax Act, as enacted by subsection 2(1) of the other Act, is repealed.

• (2) Subsection 146.1(7.1) of the Income Tax Act, as amended by subsection 2(2) of the other Act, 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).

• (3) Section 146.1 of the Income Tax Act is amended by adding the following after subsection (7.1):

  • Marginal note:Excluded amount

    (7.2) For the purpose of paragraph (7.1)(b), an excluded amount in respect of a registered education savings plan is

    • (a) any amount received under the plan;

    • (b) any amount received in satisfaction of a right to a refund of payments under the plan; or

    • (c) any amount received by a taxpayer under a decree, order or judgment of a competent tribunal, or under a written agreement, relating to a division of property between the taxpayer and the taxpayer’s spouse or common-law partner or former spouse or common-law partner in settlement of rights arising out of, or on the breakdown of, their marriage or common-law partnership.

48. Sections 46 and 47 come into force, or are deemed to have come into force, on the day on which the other Act receives royal assent.

PART 2AMENDMENTS IN RESPECT OF EXCISE DUTY ON TOBACCO PRODUCTS AND ALCOHOL

R.S., c. E-14Excise Act

Marginal note:2002, c. 22, s. 364

• 49. (1) The definition “beer” or “malt liquor” in section 4 of the Excise Act is replaced by the following:

  “beer” or “malt liquor”

  « bière » ou « liqueur de malt »

  “beer” or “malt liquor” means all fermented liquor that is brewed in whole or in part from malt, grain or any saccharine matter without any process of distillation and that has an alcoholic strength not in excess of 11.9% absolute ethyl alcohol by volume, but does not include wine as defined in section 2 of the Excise Act, 2001;

• (2) With respect to fermented liquor that is brewed by a brewer in whole or in part from malt, grain or any saccharine matter without any process of distillation and that has an alcoholic strength in excess of 11.9% absolute ethyl alcohol by volume, a valid licence held by the brewer under the Excise Act is deemed to be a valid spirits licence issued under section 14 of the Excise Act, 2001 until the day that is 30 days after the day on which this Act is assented to.

• (3) For the purposes of applying the provisions of the Excise Act, 2001 and of the Customs Act that provide for the payment of, or the liability to pay, interest in respect of any amount, the amount shall be determined and interest shall be computed on it as though this section had come into force on February 27, 2008.

• (4) Subsections (1) and (2) are deemed to have come into force on February 27, 2008.

2002, c. 22Excise Act, 2001

Amendments to the Act

50. Section 2 of the Excise Act, 2001 is amended by adding the following in alphabetical order: