• 39. (1) Subclause 126(1)(b)(ii)(A)(III) of the Act is replaced by the following:

  • (III) the total of all amounts each of which is an amount deducted under section 110.6 or paragraph 111(1)(b), or deductible under any of paragraphs 110(1)(d) to (d.3), (f), (g) and (j) and sections 112 and 113, in computing the taxpayer’s taxable income for the year, and

• (2) Subclause 126(2.1)(a)(ii)(A)(III) of the Act is replaced by the following:

  • (III) the total of all amounts each of which is an amount deducted under section 110.6 or paragraph 111(1)(b), or deductible under any of paragraphs 110(1)(d) to (d.3), (f), (g) and (j) and sections 112 and 113, in computing the taxpayer’s taxable income for the year, and

• (3) Subparagraph 126(3)(b)(iii) of the Act is replaced by the following:

  • (iii) the total of all amounts each of which is an amount deducted under section 110.6 or paragraph 111(1)(b), or deductible under any of paragraphs 110(1)(d) to (d.3), (f), (g) and (j), in computing the taxpayer’s taxable income for the year,

• (4) Subsections (1) to (3) apply to the 1997 and subsequent taxation years except that, for the 1997 taxation year

  • (a) subclause 126(1)(b)(ii)(A)(III) of the Act, as enacted by subsection (1), shall be read as follows:

    • (III) the total of all amounts each of which is an amount deducted by the taxpayer under section 110.6 or paragraph 111(1)(b), or deductible by the taxpayer under paragraph 110(1)(d), (d.1), (d.2), (d.3), (f), (g) or (j) or section 112 or 113, for the year or in respect of the period or periods referred to in subclause (II), as the case may be, and

  • (b) subclause 126(2.1)(a)(ii)(A)(III) of the Act, as enacted by subsection (2), shall be read as follows:

    • (III) the total of all amounts each of which is an amount deducted by the taxpayer under section 110.6 or paragraph 111(1)(b), or deductible by the taxpayer under paragraph 110(1)(d), (d.1), (d.2), (d.3), (f), (g) or (j) or section 112 or 113, for the year or in respect of the period or periods referred to in subclause (II), as the case may be, and

  and

  • (c) subparagraph 126(3)(b)(iii) of the Act, as enacted by subsection (3), shall be read as follows:

    • (iii) the total of all amounts each of which is an amount deducted under section 110.6 or paragraph 111(1)(b), or deductible under paragraph 110(1)(d), (d.1), (d.2), (d.3), (f), (g) or (j), in computing the individual’s taxable income for the year or in respect of the period or periods referred to in subparagraph (ii), as the case may be,

• (5) Notwithstanding subsections 152(4) to (5) of the Act, any assessment of a taxpayer’s tax, interest or penalty for any taxation year shall be made that is necessary to give effect to any of subsections (1) to (4)

• 40. (1) Paragraph 127.52(1)(h) of the Act is amended by striking out the word “and” at the end of subparagraph (iv), by adding the word “and” at the end of subparagraph (v) and by adding the following after subparagraph (v):

  • (vi) the amount deducted under paragraph 110(1)(g);

• (2) Subsection (1) applies to the 1997 and subsequent taxation years and, notwithstanding subsections 152(4) to (5) of the Act, any assessment of a taxpayer’s tax, interest or penalty for any taxation year shall be made that is necessary to give effect to subsection (1).

• 41. (1) Paragraph 157(1)(b) of the Act is replaced by the following:

  • (b) the remainder of the taxes payable by it under this Part and Parts I.3, VI, VI.1 and XIII.1 for the year on or before its balance-due day for the year.

• (2) Subsection (1) applies to taxation years that end after 2001.

• 42. (1) The Act is amended by adding the following after section 157:

  Marginal note:Instalment deferral for January, February and March 2002 — definitions

  • 157.1 (1) The following definitions apply in this section.

    “eligible corporation”

    « société admissible »

    “eligible corporation”, for a particular taxation year, means a corporation

    • (a) that is resident in Canada throughout the particular taxation year; and

    • (b) of which the taxable capital employed in Canada, within the meaning assigned by Part I.3, for its preceding taxation year did not exceed,

      • (i) if the corporation is not associated with any other corporation in the particular taxation year, $15 million, and

      • (ii) if the corporation is associated with one or more other corporations in the particular taxation year, the amount by which $15 million exceeds the total of the taxable capital employed in Canada, within the meaning assigned by Part I.3, of those other corporations for their last taxation years that ended in the last calendar year that ended before the end of the particular taxation year.

    “eligible instalment day”

    « jour admissible »

    “eligible instalment day” of an eligible corporation means a day in January, February or March, 2002, on which an instalment on account of the corporation’s tax payable under this Part for the taxation year that includes that day would become payable

    • (a) if this Act were read without reference to this section; and

    • (b) if, in the case of a corporation that is not required by section 157 to make instalment payments on account of its tax payable under this Part for the taxation year, it were so required.

  • Marginal note:Deferred balance-due day

    (2) An eligible corporation’s balance-due day for a taxation year that ends after 2001 is deemed to be the later of

    • (a) the day that would otherwise be the corporation’s balance-due day for the taxation year, and

    • (b) the day that is six months after the corporation’s last eligible instalment day in the taxation year.

  • Marginal note:Deferred instalment day

    (3) An amount that would, because of paragraph 157(1)(a), otherwise become payable in respect of a taxation year by an eligible corporation on an eligible instalment day of the corporation does not become payable on that day but becomes payable

    • (a) if the particular day that is six months after the eligible instalment day is in the taxation year, on the particular day; and

    • (b) in any other case, on the day that is deemed by subsection (2) to be the corporation’s balance-due day for the taxation year.

• (2) Subsection (1) applies to taxation years that end after 2001.

• 43. (1) Subsection 160.1(1.1) of the Act is replaced by the following:

  • Marginal note:Liability for refund by reason of s. 122.5

    (1.1) If a person is a qualified relation of an individual (within the meaning assigned by subsection 122.5(1)), in relation to one or more months specified for a taxation year, the person and the individual are jointly and severally, or solidarily, liable to pay the lesser of

    • (a) any excess described in subsection (1) that was refunded in respect of the taxation year to, or applied to a liability of, the individual as a consequence of the operation of section 122.5, and

    • (b) the total of the amounts deemed by subsection 122.5(3) to have been paid by the individual during those specified months.

  • Marginal note:Liability under other provisions

    (2) Subsection (1.1) does not limit a person’s liability under any other provision of this Act.

• (2) Subsection (1) applies to amounts deemed to be paid during months specified for the 2001 and subsequent taxation years.

• 44. (1) Paragraph (d) of the definition “balance-due day” in subsection 248(1) of the Act is replaced by the following:

  • (d) where the taxpayer is a corporation,

    • (i) the day that is three months after the day on which the taxation year (in this subparagraph referred to as the “current year”) ends, if

      • (A) an amount was deducted under section 125 in computing the corporation’s tax payable under this Part for the current year or for its preceding taxation year,

      • (B) the corporation is, throughout the current year, a Canadian-controlled private corporation, and

      • (C) either

        • (I) in the case of a corporation that is not associated with another corporation in the current year, its taxable income for its preceding taxation year (determined before taking into consideration the specified future tax consequences for that preceding taxation year) does not exceed its business limit for that preceding taxation year, or

        • (II) in the case of a corporation that is associated with one or more other corporations in the current year, the total of the taxable incomes of the corporation and of those other corporations for their last taxation years that ended in the last calendar year that ended before the end of the current year (determined before taking into consideration the specified future tax consequences for those last taxation years) does not exceed the total of the business limits of the corporation and of those other corporations for those last taxation years, and

    • (ii) the day that is two months after the day on which the taxation year ends, in any other case;

• (2) Subsection (1) applies to taxation years that end after 2001.

PART 5CANADA FUND FOR AFRICA

Canada Fund for Africa Act

45. The Canada Fund for Africa Act is enacted as follows: