• 249. (1) The portion of the description of B in subsection 118.2(1) of the English version of the Act before paragraph (a) is replaced by the following:

  B

  is the total of the individual’s medical expenses in respect of the individual, the individual’s spouse or common-law partner or a child of the individual who has not attained the age of 18 years before the end of the taxation year

• (2) Subparagraph 118.2(2)(c)(i) of the Act is replaced by the following:

  • (i) the patient is, and has been certified in writing by a medical practitioner to be, a person who, by reason of mental or physical infirmity, is and is likely to be for a long-continued period of indefinite duration dependent on others for the patient’s personal needs and care and who, as a result, requires a full-time attendant,

• (3) Paragraphs 118.2(2)(d) and (e) of the Act are replaced by the following:

  • (d) for the full-time care in a nursing home of the patient, who has been certified in writing by a medical practitioner to be a person who, by reason of lack of normal mental capacity, is and in the foreseeable future will continue to be dependent on others for the patient’s personal needs and care;

  • (e) for the care, or the care and training, at a school, an institution or another place of the patient, who has been certified in writing by an appropriately qualified person to be a person who, by reason of a physical or mental handicap, requires the equipment, facilities or personnel specially provided by that school, institution or other place for the care, or the care and training, of individuals suffering from the handicap suffered by the patient;

• (4) Subparagraph 118.2(2)(g)(ii) of the Act is replaced by the following:

  • (ii) one individual who accompanied the patient, where the patient was, and has been certified in writing by a medical practitioner to be, incapable of travelling without the assistance of an attendant

• (5) Paragraph 118.2(2)(h) of the Act is replaced by the following:

  • (h) for reasonable travel expenses (other than expenses described in paragraph (g)) incurred in respect of the patient and, where the patient was, and has been certified in writing by a medical practitioner to be, incapable of travelling without the assistance of an attendant, in respect of one individual who accompanied the patient, to obtain medical services in a place that is not less than 80 km from the locality where the patient dwells if the circumstances described in subparagraphs (g)(iii) to (v) apply;

• (6) Paragraph 118.2(2)(i) of the Act is replaced by the following:

  • (i) for, or in respect of, an artificial limb, an iron lung, a rocking bed for poliomyelitis victims, a wheel chair, crutches, a spinal brace, a brace for a limb, an ileostomy or colostomy pad, a truss for hernia, an artificial eye, a laryngeal speaking aid, an aid to hearing, an artificial kidney machine, phototherapy equipment for the treatment of psoriasis or other skin disorders, or an oxygen concentrator, for the patient;

• (7) The portion of paragraph 118.2(2)(l.1) of the French version of the Act before subparagraph (i) is replaced by the following:

  • l.1) au nom du particulier, de son époux ou conjoint de fait ou d’une personne à charge visée à l’alinéa a), qui doit subir une transplantation de la moelle osseuse ou d’un organe :

• (8) Subparagraph 118.2(2)(l.9)(iii) of the English version of the Act is replaced by the following:

  • (iii) at the time the remuneration is paid, the payee is neither the individual’s spouse or common-law partner nor under 18 years of age, and

• (9) Subsections (1) and (8) apply to taxation years that end after October 31, 2011.

• (10) Subsections (2) to (5) apply to certifications made after December 20, 2002.

• 250. (1) Paragraph 118.3(2)(a) of the French version of the Act is replaced by the following:

  • a) d’une part, le particulier demande pour l’année, pour cette personne, une déduction prévue au paragraphe 118(1), soit par application de l’alinéa 118(1)b), soit, si la personne est le père, la mère, le grand-père, la grand-mère, un enfant, un petit-enfant, le frère, la soeur, la tante, l’oncle, le neveu ou la nièce du particulier ou de son époux ou conjoint de fait, par application des alinéas 118(1)c.1) ou d), ou aurait pu demander une telle déduction pour l’année si cette personne n’avait eu aucun revenu pour l’année et avait atteint l’âge de 18 ans avant la fin de l’année et, dans le cas de la déduction prévue à l’alinéa 118(1)b), si le particulier n’avait pas été marié ou n’avait pas vécu en union de fait;

• (2) Paragraph 118.3(4)(b) of the Act is replaced by the following:

  • (b) if the information referred to in paragraph (a) is provided by a person referred to in paragraph (1)(a.2) or (a.3), the information so provided is deemed to be included in a certificate in prescribed form.

• (3) Subsection (1) applies to the 2001 and subsequent taxation years, except that, if a taxpayer and a person have jointly elected under section 144 of the Modernization of Benefits and Obligations Act, in respect of the 1998, 1999 or 2000 taxation years, subsection (1) applies to the taxpayer and the person in respect of the applicable taxation year and subsequent taxation years.

• (4) Subsection (2) applies to the 2005 and subsequent taxation years.

251. Subparagraph 118.5(1)(a)(iii) of the Act is replaced by the following:

• 252. (1) Subparagraph (a)(i) of the definition “designated educational institution” in subsection 118.6(1) of the Act is replaced by the following:

  • (i) a university, college or other educational institution designated by the lieutenant governor in council of a province as a specified educational institution under the Canada Student Loans Act, designated by an appropriate authority under the Canada Student Financial Assistance Act, or designated, for the purposes of An Act respecting financial assistance for education expenses, R.S.Q, c. A-13.3, by the Minister of the Province of Quebec responsible for the administration of that Act, or

• (2) Subsection (1) applies to the 1998 and subsequent taxation years.

• 253. (1) Section 118.7 of the Act is replaced by the following:

  Marginal note:Credit for EI and QPIP premiums and CPP contributions

  118.7 For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted the amount determined by the formula

  A × B

  where

  A

  is the appropriate percentage for the year; and

  B

  is the total of

  • (a) the total of all amounts each of which is an amount payable by the individual as an employee’s premium or a self-employment premium for the year under the Employment Insurance Act, not exceeding the maximum amount of such premiums payable by the individual for the year under that Act,

  • (a.1) the total of all amounts each of which is an amount payable by the individual as an employee’s premium for the year under the Act respecting parental insurance, R.S.Q., c. A-29.011, not exceeding the maximum amount of such premiums payable by the individual for the year under that Act,

  • (a.2) the amount, if any, by which the total of all amounts each of which is an amount payable by the individual in respect of self-employed earnings for the year as a premium under the Act respecting parental insurance, R.S.Q., c. A-29.011, (not exceeding the maximum amount of such premiums payable by the individual for the year under that Act) exceeds the amount deductible under paragraph 60(g) in computing the individual’s income for the year,

  • (b) the total of all amounts each of which is an amount payable by the individual for the year as an employee’s contribution under the Canada Pension Plan or under a provincial pension plan defined in section 3 of that Act, not exceeding the maximum amount of such contributions payable by the individual for the year under the plan, and

  • (c) the amount by which

    • (i) the total of all amounts each of which is an amount payable by the individual in respect of self-employed earnings for the year as a contribution under the Canada Pension Plan or under a provincial pension plan within the meaning assigned by section 3 of that Act (not exceeding the maximum amount of such contributions payable by the individual for the year under the plan)

    exceeds

    • (ii) the amount deductible under paragraph 60(e) in computing the individual’s income for the year.

• (2) Subsection (1) applies to the 2006 and subsequent taxation years, except that for taxation years ending after 2005 and before 2010, paragraph (a) of the description of B in section 118.7 of the Act, as enacted by subsection (1), is to be read as follows:

  • (a) the total of all amounts each of which is an amount payable by the individual as an employee’s premium for the year under the Employment Insurance Act, not exceeding the maximum amount of such premiums payable by the individual for the year under that Act,

• 254. (1) Paragraph 120.2(3)(b) of the Act is replaced by the following:

  • (b) the amount that, if this Act were read without reference to section 120, would be the individual’s tax payable under this Part for the year if the individual were not entitled to any deduction under any of sections 126, 127 and 127.4, and

• (2) Subsection (1) applies to the 2000 and subsequent taxation years.

• 255. (1) The portion of paragraph 120.31(3)(b) of the Act before subparagraph (i) is replaced by the following:

  • (b) if the eligible taxation year ended before the taxation year preceding the year of receipt, an amount equal to the amount that would be calculated as interest payable on the amount, if any, by which the amount determined under paragraph (a) in respect of the eligible taxation year exceeds the taxpayer’s tax payable under this Part for that year, if the amount that would be calculated as interest payable on that excess were calculated

• (2) Subsection (1) applies to the 1995 and subsequent taxation years.

• 256. (1) The portion of subparagraph (b)(ii) of the definition “split income” in subsection 120.4(1) of the English version of the Act before clause (A) is replaced by the following:

  • (ii) can reasonably be considered to be income derived from the provision of property or services by a partnership or trust to, or in support of, a business carried on by

• (2) The portion of clause (c)(ii)(C) of the definition “split income” in subsection 120.4(1) of the English version of the Act before subclause (I) is replaced by the following:

  • (C) to be income derived from the provision of property or services by a partnership or trust to, or in support of, a business carried on by

• (3) Subsections (1) and (2) apply in computing split income of a specified individual for taxation years that begin after December 20, 2002, other than in computing an amount included in that income that is from a trust or partnership for a taxation year or fiscal period of the trust or partnership that began before December 21, 2002.

• 257. (1) The portion of subsection 122(2) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Where subsection (1) does not apply

    (2) Subsection (1) does not apply for a taxation year of an inter vivos trust that is not a mutual fund trust and that

• (2) Subsection (1) applies to trust taxation years that begin after 2002.

• 258. (1) The portion of the definition “qualified REIT property” before paragraph (c) in subsection 122.1(1) of the Act is replaced by the following:

  “qualified REIT property”

  « bien admissible de FPI »

  “qualified REIT property”, of a trust at any time, means a property that, at that time, is held by the trust and is

  • (a) a real or immovable property that is capital property, an eligible resale property, an indebtedness of a Canadian corporation represented by a bankers’ acceptance, a property described by paragraph (a) or (b) of the definition “qualified investment” in section 204 or a deposit with a credit union;

  • (b) a security of a subject entity all or substantially all of the gross REIT revenue of which, for its taxation year that ends in the trust’s taxation year that includes that time, is from maintaining, improving, leasing or managing real or immovable properties that are capital properties of the trust or of an entity of which the trust holds a share or an interest, including real or immovable properties that the trust, or an entity of which the trust holds a share or an interest, holds together with one or more other persons or partnerships;

• (2) Paragraph (d) of the definition “qualified REIT property” in subsection 122.1(1) of the Act is replaced by the following:

  • (d) ancillary to the earning by the trust of amounts described in subparagraphs (b)(i) and (iii) of the definition “real estate investment trust”, other than

    • (i) an equity of an entity, or

    • (ii) a mortgage, hypothecary claim, mezzanine loan or similar obligation.

• (3) Paragraph (a) of the definition “real estate investment trust” in subsection 122.1(1) of the Act is replaced by the following:

  • (a) at each time in the taxation year the total fair market value at that time of all non-portfolio properties that are qualified REIT properties held by the trust is at least 90% of the total fair market value at that time of all non-portfolio properties held by the trust;

• (4) The portion of paragraph (b) of the definition “real estate investment trust” in subsection 122.1(1) of the Act before subparagraph (i) is replaced by the following:

  • (b) not less than 90% of the trust’s gross REIT revenue for the taxation year is from one or more of the following:

• (5) Subparagraph (b)(iii) of the definition “real estate investment trust” in subsection 122.1(1) of the Act is replaced by the following:

  • (iii) dispositions of real or immovable properties that are capital properties,

• (6) Paragraph (b) of the definition “real estate investment trust” in subsection 122.1(1) of the Act is amended by striking out “and” at the end of subparagraph (iv), by adding “and” at the end of subparagraph (v) and by adding the following after subparagraph (v):

  • (vi) dispositions of eligible resale properties;

• (7) The portion of paragraph (c) of the definition “real estate investment trust” in subsection 122.1(1) of the Act before subparagraph (i) is replaced by the following:

  • (c) not less than 75% of the trust’s gross REIT revenue for the taxation year is from one or more of the following:

• (8) Subparagraph (c)(iii) of the definition “real estate investment trust” in subsection 122.1(1) of the Act is replaced by the following:

  • (iii) dispositions of real or immovable properties that are capital properties;

• (9) The definition “real estate investment trust” in subsection 122.1(1) of the Act is amended by striking out “and” at the end of paragraph (c) and by replacing paragraph (d) with the following:

  • (d) at each time in the taxation year an amount, that is equal to 75% or more of the equity value of the trust at that time, is the amount that is the total fair market value of all properties held by the trust each of which is a real or immovable property that is capital property, an eligible resale property, an indebtedness of a Canadian corporation represented by a bankers’ acceptance, a property described by paragraph (a) or (b) of the definition “qualified investment” in section 204 or a deposit with a credit union; and

  • (e) investments in the trust are, at any time in the taxation year, listed or traded on a stock exchange or other public market.

• (10) Paragraph (a) of the definition “rent from real or immovable properties” in subsection 122.1(1) of the Act is amended by adding “and” at the end of subparagraph (i), by replacing “and” at the end of subparagraph (ii) with “but” and by repealing subparagraph (iii).

• (11) Subsection 122.1(1) of the Act is amended by adding the following in alphabetical order:

  “eligible resale property”

  « bien de revente admissible »

  “eligible resale property”, of an entity, means real or immovable property (other than capital property) of the entity

  • (a) that is contiguous to a particular real or immovable property that is capital property or eligible resale property, held by

    • (i) the entity, or

    • (ii) another entity affiliated with the entity; and

  • (b) the holding of which is ancillary to the holding of the particular property.

  “gross REIT revenue”

  « revenu brut de FPI »

  “gross REIT revenue”, of an entity for a taxation year, means the amount, if any, by which the total of all amounts received or receivable in the year (depending on the method regularly followed by the entity in computing the entity’s income) by the entity exceeds the total of all amounts each of which is the cost to the entity of a property disposed of in the year.

• (12) Section 122.1 of the Act is amended by adding the following after subsection (1):

  • Marginal note:Application of subsection (1.2)

    (1.1) Subsection (1.2) applies to an entity for a taxation year in respect of an amount and another entity (referred to in this subsection and subsection (1.2) as the “parent entity”, “specified amount” and “source entity”, respectively), if

    • (a) at any time in the taxation year the parent entity

      • (i) is affiliated with the source entity, or

      • (ii) holds securities of the source entity that

        • (A) are described by any of paragraphs (a) to (c) of the definition “equity” in subsection (1), and

        • (B) have a total fair market value that is greater than 10% of the equity value of the source entity;

    • (b) the specified amount is included in computing the parent entity’s gross REIT revenue for the taxation year in respect of a security of the source entity held by the parent entity; and

    • (c) in the case of a source entity that is a subject entity described in paragraph (b) of the definition “qualified REIT property” in subsection (1) in respect of the parent entity at each time during the taxation year at which the parent entity holds securities of the source entity, the specified amount cannot reasonably be considered to be derived from the source entity’s gross REIT revenue from maintaining, improving, leasing or managing real or immovable properties that are capital properties of the parent entity or of an entity of which the parent entity holds a share or an interest, including real or immovable properties that the parent entity, or an entity of which the parent entity holds a share or an interest, holds together with one or more other persons or partnerships.

  • Marginal note:Character preservation rule

    (1.2) If this subsection applies to a parent entity for a taxation year in respect of a specified amount and a source entity, then for the purposes of the definition “real estate investment trust” in subsection (1), to the extent that the specified amount can reasonably be considered to be derived from gross REIT revenue of the source entity having a particular character, the specified amount is deemed to be gross REIT revenue of the parent entity having the same character and not having any other character.

  • Marginal note:Character of revenue — hedging arrangements

    (1.3) For the purposes of the definition “real estate investment trust” in subsection (1),

    • (a) if an amount is included in gross REIT revenue of a trust for a taxation year and it results from an agreement that can reasonably be considered to have been made by the trust to reduce its risk from fluctuations in interest rates in respect of debt incurred by the trust to acquire or refinance real or immovable property, the amount is deemed to have the same character as gross REIT revenue in respect of the real or immovable property and not any other character; and

    • (b) if a real or immovable property is situated in a country other than Canada and an amount included in gross REIT revenue of a trust for a taxation year

      • (i) is a gain from fluctuations in the value of the currency of that country relative to Canadian currency recognized on

        • (A) revenue in respect of the real or immovable property, or

        • (B) debt incurred by the trust for the purpose of earning revenue in respect of the real or immovable property, or

      • (ii) results from an agreement that

        • (A) provides for the purchase, sale or exchange of currency, and

        • (B) can reasonably be considered to have been made by the trust to reduce its risk from currency fluctuations described in subparagraph (i),

      the amount is deemed to have the same character as gross REIT revenue in respect of the real or immovable property and not any other character.

• (13) Subsections (1) to (12) apply to

  • (a) taxation years of a trust that end after 2006 and before 2011 if

    • (i) investments in the trust are, in one or more of those taxation years, listed or traded on a stock exchange or other public market, and

    • (ii) the trust elects, by notifying the Minister of National Revenue in writing on or before its filing due-date for its taxation year that includes the day on which this Act receives royal assent, to have those subsections so apply; and

  • (b) the 2011 and subsequent taxation years, except that paragraph (d) of the definition “real estate investment trust” in subsection 122.1(1) of the Act, as enacted by subsection (9), is to be read as follows for taxation years that end before 2013:

    • (d) at each time in the taxation year an amount, that is equal to 75% or more of the equity value of the trust at that time, is the amount that is the total fair market value of all properties held by the trust each of which is real or immovable property, indebtedness of a Canadian corporation represented by a bankers’ acceptance, property described by either paragraph (a) or (b) of the definition “qualified investment” in section 204, or a deposit with a credit union; and