• 144. (1) The portion of subsection 160.3(3) of the English version of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Rules applicable

    (3) If a taxpayer and another person have, by virtue of subsection (1), become jointly and severally, or solidarily, liable in respect of part or all of a liability of the taxpayer under this Act, the following rules apply:

• (2) Paragraph 160.3(3)(a) of the Act is replaced by the following:

  • (a) a payment by the other person on account of the other person’s liability shall to the extent thereof discharge their liability; but

• (3) Paragraph 160.3(3)(b) of the English version of the Act is replaced by the following:

  • (b) a payment by the taxpayer on account of the taxpayer’s liability discharges the other person’s liability only to the extent that the payment operates to reduce the taxpayer’s liability to an amount less than the amount in respect of which the other person was, by subsection (1), made jointly and severally, or solidarily, liable.

• 145. (1) The portion of subsection 160.4(4) of the English version of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Rules applicable

    (4) If a corporation and another person have, because of subsection (1) or (2), become jointly and severally, or solidarily, liable in respect of part or all of a liability of the corporation under this Act

• (2) Paragraph 160.4(4)(a) of the Act is replaced by the following:

  • (a) a payment by the other person on account of that person’s liability shall to the extent thereof discharge their liability; and

• (3) Paragraph 160.4(4)(b) of the English version of the Act is replaced by the following:

  • (b) a payment by the corporation on account of the corporation’s liability discharges the other person’s liability only to the extent that the payment operates to reduce the corporation’s liability to an amount less than the amount in respect of which the other person was, by subsection (1) or (2), as the case may be, made jointly and severally, or solidarily, liable.

146. Subparagraph 163.2(8)(b)(i) of the French version of the Act is replaced by the following:

147. Paragraph (d) of the definition “financial institution” in subsection 181(1) of the Act is replaced by the following:

• 148. (1) Paragraph 181.3(1)(a) of the Act is replaced by the following:

  • (a) the total of all amounts each of which is the carrying value at the end of the year of an asset of the financial institution (other than property held by the institution primarily for the purpose of resale that was acquired by the financial institution, in the year or the preceding taxation year, as a consequence of another person’s default, or anticipated default, in respect of a debt owed to the institution) that is tangible, or for civil law corporeal, property used in Canada and, in the case of a financial institution that is an insurance corporation, that is non-segregated property, within the meaning assigned by subsection 138(12),

• (2) Subparagraph 181.3(1)(b)(i) of the Act is replaced by the following:

  • (i) the total of all amounts each of which is the carrying value of an asset of the partnership, at the end of its last fiscal period ending at or before the end of the year, that is tangible, or for civil law corporeal, property used in Canada

149. Subparagraph 181.4(d)(i) of the Act is replaced by the following:

• 150. (1) The portion of subsection 185(4) of the English version of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Joint and several, or solidary, liability from excessive elections

    (4) Each person who has received a dividend from a corporation in respect of which the corporation elected under subsection 83(2), 130.1(4) or 131(1) is jointly and severally, or solidarily, liable with the corporation to pay that proportion of the corporation’s tax payable under this Part because of the election that

• (2) The portion of subsection 185(6) of the English version of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Rules applicable

    (6) If under subsection (4) a corporation and another person have become jointly and severally, or solidarily, liable to pay part or all of the corporation’s tax payable under this Part in respect of a dividend described in that subsection,

• (3) Paragraph 185(6)(a) of the Act is replaced by the following:

  • (a) a payment at any time by the other person on account of the liability shall, to the extent of the payment, discharge their liability after that time; and

151. Subsection 188(4) of the English version of the Act is replaced by the following:

152. Paragraph (c) of the definition “financial institution” in subsection 190(1) of the Act is replaced by the following:

• 153. (1) Paragraph 191.3(1)(e) of the English version of the Act is replaced by the following:

  • (e) the transferor corporation and the transferee corporation are jointly and severally, or solidarily, liable to pay the amount of tax specified in the agreement and any interest or penalty in respect thereof.

• (2) Subsection 191.3(5) of the English version of the Act is replaced by the following:

  • Marginal note:Assessment of transferor corporation

    (5) The Minister may at any time assess a transferor corporation in respect of any amount for which it is jointly and severally, or solidarily, liable by reason of paragraph (1)(e) and the provisions of Division I of Part I are applicable in respect of the assessment as though it had been made under section 152.

• (3) The portion of subsection 191.3(6) of the English version of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Payment by transferor corporation

    (6) If a transferor corporation and a transferee corporation are by reason of paragraph (1)(e) jointly and severally, or solidarily, liable in respect of tax payable by the transferee corporation under subparagraph 191.1(1)(a)(iv) and any interest or penalty in respect thereof, the following rules apply:

• (4) Paragraph 191.3(6)(a) of the Act is replaced by the following:

  • (a) a payment by the transferor corporation on account of the liability shall, to the extent thereof, discharge their liability; and

• (5) Paragraph 191.3(6)(b) of the English version of the Act is replaced by the following:

  • (b) a payment by the transferee corporation on account of its liability discharges the transferor corporation’s liability only to the extent that the payment operates to reduce the transferee corporation’s liability under this Act to an amount less than the amount in respect of which the transferor corporation was, by paragraph (1)(e), made jointly and severally, or solidarily, liable.

• 154. (1) The portion of subparagraph 204.4(2)(a)(ii) of the Act after clause (A) is replaced by the following:

  • (B) the amount by which the fair market value at the time of acquisition of its real or immovable property that may reasonably be regarded as being held for the purpose of producing income from property exceeds the total of all amounts each of which is owing by it on account of its acquisition of the real or immovable property

  is not less than 80% of the amount by which the fair market value at the time of acquisition of all its property exceeds the total of all amounts each of which is owing by it on account of its acquisition of real or immovable property,

• (2) Subparagraphs 204.4(2)(a)(iii) and (iv) of the Act are replaced by the following:

  • (iii) the fair market value at the time of acquisition of its shares, bonds, mortgages, hypothecary claims and other securities of any one corporation or debtor (other than bonds, mortgages, hypothecary claims and other securities of or guaranteed by Her Majesty in right of Canada or a province or Canadian municipality) is not more than 10% of the amount by which the fair market value at the time of acquisition of all its property exceeds the total of all amounts each of which is an amount owing by it on account of its acquisition of real or immovable property,

  • (iv) the amount by which

    • (A) the fair market value at the time of acquisition of any one of its real or immovable properties

    exceeds

    • (B) the total of all amounts each of which is owing by it on account of its acquisition of the real or immovable property

    is not more than 10% of the amount by which the fair market value at the time of acquisition of all its property exceeds the total of all amounts each of which is owing by it on account of its acquisition of real or immovable property,

• (3) Clause 204.4(2)(a)(viii)(A) of the Act is replaced by the following:

  • (A) a mortgage or hypothecary claim (other than a mortgage or hypothecary claim insured under the National Housing Act or by a corporation that offers its services to the public in Canada as an insurer of mortgages or hypothecary claims and that is approved as a private insurer of mortgages or hypothecary claims by the Superintendent of Financial Institutions pursuant to the powers assigned to the Superintendent under subsection 6(1) of the Office of the Superintendent of Financial Institutions Act), or an interest therein, or for civil law a right therein, in respect of which the mortgagor or hypothecary debtor is the annuitant under a registered retirement savings plan or registered retirement income fund, or a person with whom the annuitant is not dealing at arm’s length, if any of the funds of a trust governed by such a plan or fund have been used to acquire an interest in the applicant, or

• 155. (1) Subparagraph 204.6(2)(b)(ii) of the Act is replaced by the following:

  • (ii) the total of all amounts each of which is an amount owing by the trust at the end of the month in respect of the acquisition of real property or immovables.

• (2) Subsection 204.6(3) of the Act is replaced by the following:

  • Marginal note:Tax payable — real property or immovables

    (3) If at the end of any month a taxpayer that is a registered investment described in paragraph 204.4(2)(a) holds real or immovable property, it shall, in respect of that month, pay a tax under this Part equal to 1% of the total of all amounts each of which is the amount by which the excess of

    • (a) the fair market value at the time of its acquisition of any one real or immovable property of the taxpayer

    over

    • (b) the total of all amounts each of which was an amount owing by it at the end of the month on account of its acquisition of the real or immovable property

    was greater than 10% of the amount by which the total of all amounts each of which is the fair market value at the time of its acquisition of a property held by it at the end of the month exceeds the total of all amounts each of which was an amount owing by it at the end of the month on account of its acquisition of real or immovable property.

156. Paragraphs (c) and (c.1) of the definition “carved-out property” in subsection 209(1) of the Act are replaced by the following:

• 157. (1) Subparagraphs 212(1)(d)(viii) and (ix) of the Act are replaced by the following:

  • (viii) a payment made under a bona fide cost-sharing arrangement under which the person making the payment shares on a reasonable basis with one or more non-resident persons research and development expenses in exchange for an interest, or for civil law a right, in any or all property or other things of value that may result therefrom,

  • (ix) a rental payment for the use of or the right to use outside Canada any tangible, or for civil law corporeal, property,

• (2) Paragraph 212(13)(f) of the Act is replaced by the following:

  • (f) interest on any mortgage, hypothecary claim or other indebtedness entered into or issued or modified after March 31, 1977 and secured by real property situated in Canada or an interest therein, or by immovables situated in Canada or real rights therein, to the extent that the amount so paid or credited is deductible in computing the non-resident person’s taxable income earned in Canada or the amount on which the non-resident person is liable to pay tax under Part I,

• 158. (1) Paragraph 216(1)(b) of the Act is replaced by the following:

  • (b) the non-resident person’s income from the non-resident person’s interest in real property, or real right in immovables, in Canada and interest in, or for civil law right in, timber resource properties and timber limits in Canada, and the non-resident person’s share of the income of a partnership of which the non-resident person was a member from its interest in real property, or real right in immovables, in Canada and interest in, or for civil law right in, timber resource properties and timber limits in Canada, were the non-resident person’s only income;

• (2) Paragraphs 216(2)(a) and (b) of the Act are replaced by the following:

  • (a) rent on real or immovable property or from timber royalties paid to the person, and

  • (b) the person’s share of the rent on real or immovable property or from timber royalties paid to a partnership of which the person is a member

• (3) The portion of subsection 216(4) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Optional method of payment

    (4) If a non-resident person or, in the case of a partnership, each non-resident person who is a member of the partnership files with the Minister an undertaking in prescribed form to file within six months after the end of a taxation year a return of income under Part I for the year as permitted by this section, a person who is otherwise required by subsection 215(3) to remit in the year, in respect of the non-resident person or the partnership, an amount to the Receiver General in payment of tax on rent on real or immovable property or on a timber royalty may elect under this section not to remit under that subsection, and if that election is made, the elector shall,

• (4) Paragraph 216(5)(b) of the Act is replaced by the following:

  • (b) the person’s income from the person’s interest in real property, or real right in immovables, in Canada or interest in, or for civil law right in, timber resource properties and timber limits in Canada, and the person’s share of the income of a partnership of which the person was a member from its interest in real property, or real right in immovables, in Canada or interest in, or for civil law right in, timber resource properties and timber limits in Canada, were the person’s only income;