Marginal note:2003, c. 15, s. 48(2)

• 38. (1) Paragraph 2(b) of Schedule 1 to the Act is replaced by the following:

  • (b) $0.0605 per stick, in any other case.

• (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2006.

Marginal note:2003, c. 15, s. 49(2)

• 39. (1) Paragraph 3(b) of Schedule 1 to the Act is replaced by the following:

  • (b) $55.90 per kilogram, in any other case.

• (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2006.

• 40. (1) Section 4 of Schedule 1 to the Act is replaced by the following:

  4. Cigars: $16.60 per 1,000 cigars.

• (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2006.

Marginal note:2003, c. 15, s. 50(1)

• 41. (1) Paragraph (a) of Schedule 2 to the Act is replaced by the following:

  • (a) $0.066 per cigar, and

• Marginal note:2003, c. 15, s. 50(2)

  (2) The portion of paragraph (b) of Schedule 2 to the Act before subparagraph (i) is replaced by the following:

  • (b) 66%, computed on

• (3) Subsections (1) and (2) come into force, or are deemed to have come into force, on July 1, 2006.

Application

42. For the purposes of applying the provisions 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 sections 37 to 41 had come into force on July 1, 2006.

Amendments Relating to Alcohol Products

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

Marginal note:1990, c. 45, s. 34

• 43. (1) Sections 1 and 2 of Part II of the schedule to the Excise Act are replaced by the following:

  • 1. On all beer or malt liquor containing more than 2.5% absolute ethyl alcohol by volume, $31.22 per hectolitre.

  • 2. On all beer or malt liquor containing more than 1.2% absolute ethyl alcohol by volume but not more than 2.5% absolute ethyl alcohol by volume, $15.61 per hectolitre.

• (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2006.

2002, c. 22Excise Act, 2001

• 44. (1) Subparagraphs 217(2)(a)(i) and (ii) of the Excise Act, 2001 are replaced by the following:

  • (i) $11.696 multiplied by the number of litres of absolute ethyl alcohol in the spirits to which the offence relates,

  • (ii) $0.62 multiplied by the number of litres of wine to which the offence relates, and

• (2) Subparagraphs 217(3)(a)(i) and (ii) of the Act are replaced by the following:

  • (i) $23.392 multiplied by the number of litres of absolute ethyl alcohol in the spirits to which the offence relates,

  • (ii) $1.24 multiplied by the number of litres of wine to which the offence relates, and

• (3) Subsections (1) and (2) come into force on the later of July 1, 2006 and the day on which this Act is assented to.

• 45. (1) Subparagraphs 218(2)(a)(i) and (ii) of the Act are replaced by the following:

  • (i) $23.392 multiplied by the number of litres of absolute ethyl alcohol in the spirits to which the offence relates, and

  • (ii) $1.24 multiplied by the number of litres of wine to which the offence relates, and

• (2) Subparagraphs 218(3)(a)(i) and (ii) of the Act are replaced by the following:

  • (i) $35.088 multiplied by the number of litres of absolute ethyl alcohol in the spirits to which the offence relates, and

  • (ii) $1.86 multiplied by the number of litres of wine to which the offence relates, and

• (3) Subsections (1) and (2) come into force on the later of July 1, 2006 and the day on which this Act is assented to.

• 46. (1) Section 242 of the Act is replaced by the following:

  Marginal note:Contravention of section 72

  242. Every person who contravenes section 72 is liable to a penalty equal to $1.24 per litre of wine to which the contravention relates.

• (2) Subsection (1) comes into force on the later of July 1, 2006 and the day on which this Act is assented to.

• 47. (1) Paragraph 243(b) of the Act is replaced by the following:

  • (b) if the contravention relates to wine, $0.62 per litre of that wine.

• (2) Subsection (1) comes into force on the later of July 1, 2006 and the day on which this Act is assented to.

• 48. (1) Sections 1 and 2 of Schedule 4 to the Act are replaced by the following:

  1. Spirits: $11.696 per litre of absolute ethyl alcohol contained in the spirits.

  2. Spirits containing not more than 7% absolute ethyl alcohol by volume: $0.295 per litre of spirits.

• (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2006.

• 49. (1) Paragraphs (b) and (c) of Schedule 6 to the Act are replaced by the following:

  • (b) in the case of wine that contains more than 1.2% of absolute ethyl alcohol by volume but not more than 7% of absolute ethyl alcohol by volume, $0.295 per litre; and

  • (c) in the case of wine that contains more than 7% of absolute ethyl alcohol by volume, $0.62 per litre.

• (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2006.

Application

50. For the purposes of applying the provisions of the Customs Act and the Excise 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 sections 43, 48 and 49 had come into force on July 1, 2006.

PART 2R.S., c. 1 (5th Supp.)AMENDMENTS TO THE INCOME TAX ACT

• 51. (1) The portion of paragraph 38(a.1) of the Income Tax Act before subparagraph (ii) is replaced by the following:

  • (a.1) a taxpayer’s taxable capital gain for a taxation year from the disposition of a property is equal to zero if

    • (i) the disposition is the making of a gift to a qualified donee (other than a private foundation) of a share, debt obligation or right listed on a prescribed stock exchange, a share of the capital stock of a mutual fund corporation, a unit of a mutual fund trust, an interest in a related segregated fund trust (within the meaning assigned by paragraph 138.1(1)(a)) or a prescribed debt obligation, or

• (2) The portion of paragraph 38(a.2) of the Act before subparagraph (i) is replaced by the following:

  • (a.2) a taxpayer’s taxable capital gain for a taxation year from the disposition of a property is equal to zero if

• (3) Subsections (1) and (2) apply in respect of gifts of property made after May 1, 2006.

• 52. (1) Clause 53(1)(e)(i)(A) of the Act is replaced by the following:

  • (A) paragraphs 38(a.1) and (a.2) and the fractions set out in the formula in paragraph 14(1)(b) and in subsection 14(5), paragraph 38(a) and subsection 41(1),

• (2) Subsection (1) applies after May 1, 2006.

• 53. (1) Clauses (ii)(F) to (H) of the description of A in paragraph 64(a) of the Act are replaced by the following:

  • (F) where the taxpayer has an impairment in physical or mental functions, for the cost of note-taking services and to a person engaged in the business of providing such services, if the taxpayer has been certified in writing by a medical practitioner to be a person who, because of that impairment, requires such services,

  • (G) where the taxpayer has an impairment in physical functions, for the cost of voice recognition software, if the taxpayer has been certified in writing by a medical practitioner to be a person who, because of that impairment, requires that software,

  • (H) where the taxpayer has a learning disability or an impairment in mental functions, for the cost of tutoring services that are rendered to, and supplementary to the primary education of, the taxpayer and to a person ordinarily engaged in the business of providing such services to individuals who are not related to the person, if the taxpayer has been certified in writing by a medical practitioner to be a person who, because of that disability or impairment, requires those services,

• (2) Subparagraph (ii) of the description of A in paragraph 64(a) of the Act is amended by striking out the word “and” at the end of clause (I) and by adding the following after clause (J):

  • (K) where the taxpayer has a severe and prolonged impairment in physical or mental functions, for the cost of job coaching services (not including job placement or career counselling serv­ices) and to a person engaged in the business of providing such services if the taxpayer has been certified in writing by a medical practitioner to be a person who, because of that impairment, requires such services,

  • (L) where the taxpayer is blind or has a severe learning disability, for the cost of reading services and to a person engaged in the business of providing such services, if the taxpayer has been certified in writing by a medical practitioner to be a person who, because of that impairment or disability, requires those services,

  • (M) where the taxpayer is blind and profoundly deaf, for the cost of deaf-blind intervening services and to a person engaged in the business of providing such services,

  • (N) where the taxpayer has a speech impairment, for the cost of a device that is a Bliss symbol board, or a similar device, that is prescribed by a medical practitioner to help the taxpayer communicate by selecting the symbols or spelling out words,

  • (O) where the taxpayer is blind, for the cost of a device that is a Braille note-taker, prescribed by a medical practitioner, to allow the taxpayer to take notes (that can, by the device, be read back to them or printed or displayed in Braille) with the help of a keyboard,

  • (P) where the taxpayer has a severe and prolonged impairment in physical functions that markedly restricts their ability to use their arms or hands, for the cost of a device that is a page turner prescribed by a medical practitioner to help the taxpayer to turn the pages of a book or other bound document, and

  • (Q) where the taxpayer is blind, or has a severe learning disability, for the cost of a device or software that is prescribed by a medical practitioner and designed to enable the taxpayer to read print,

• (3) Subsections (1) and (2) apply to the 2005 and subsequent taxation years.

• 54. (1) Subsection 67.1(1) of the Act is replaced by the following:

  Marginal note:Expenses for food, etc.

  • 67.1 (1) For the purposes of this Act, other than sections 62, 63, 118.01 and 118.2, an amount paid or payable in respect of the human consumption of food or beverages or the enjoyment of entertainment is deemed to be 50% of the lesser of

    • (a) the amount actually paid or payable in respect thereof, and

    • (b) an amount in respect thereof that would be reasonable in the circumstances.

• (2) Subsection (1) applies to the 2005 and subsequent taxation years.

• 55. (1) Subsection 87(2) of the Act is amended by adding the following before paragraph (t):

  • Marginal note:Tax deferred cooperative shares

    (s) for the purpose of section 135.1, if the new corporation is, at the beginning of its first taxation year, an agricultural cooperative corporation (within the meaning assigned by subsection 135.1(1)),

    • (i) the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation that was an agricultural cooperative corporation at the end of the predecessor corporation’s last taxation year, and

    • (ii) if, on the amalgamation, the new corporation issues a share (in this subparagraph referred to as the “new share”) that is described in all of paragraphs (b) to (d) of the definition “tax deferred cooperative share” in subsection 135.1(1) to a taxpayer in exchange for a share of a predecessor corporation (in this subparagraph referred to as the “old share”) that was, at the end of the predecessor corporation’s last taxation year, a tax deferred cooperative share within the meaning assigned by that definition, and the amount of paid-up capital, and the amount, if any, that the taxpayer is entitled to receive on a redemption, acquisition or cancellation, of the new share are equal to those amounts, respectively, in respect of the old share,

      • (A) the new share is deemed to have been issued at the time the old share was issued, and

      • (B) in applying subsection 135.1(2), the taxpayer is deemed to have disposed of the old share for nil proceeds;

• (2) Subsection (1) applies after 2005.

• 56. (1) The portion of paragraph 110(1)(d.01) of the Act before subparagraph (i) is replaced by the following:

  • Marginal note:Charitable donation of employee option securities

    (d.01) subject to subsection (2.1), where the taxpayer disposes of a security acquired in the year by the taxpayer under an agreement referred to in subsection 7(1) by making a gift of the security to a qualified donee (other than a private foundation), an amount in respect of the disposition of the security equal to 1/2 of the lesser of the benefit deemed by paragraph 7(1)(a) to have been received by the taxpayer in the year in respect of the acquisition of the security and the amount that would have been that benefit had the value of the security at the time of its acquisition by the taxpayer been equal to the value of the security at the time of the disposition, if

• (2) Subsection (1) applies to gifts made after May 1, 2006.

• 57. (1) Paragraph 111(1)(a) of the Act is replaced by the following:

  • Marginal note:Non-capital losses

    (a) non-capital losses for the 20 taxation years immediately preceding and the 3 taxation years immediately following the year;

• (2) Paragraphs 111(1)(c) and (d) of the Act are replaced by the following:

  • Marginal note:Restricted farm losses

    (c) restricted farm losses for the 20 taxation years immediately preceding and the 3 taxation years immediately following the year, but no amount is deductible for the year in respect of restricted farm losses except to the extent of the taxpayer’s incomes for the year from all farming businesses carried on by the taxpayer;

  • Marginal note:Farm losses

    (d) farm losses for the 20 taxation years immediately preceding and the 3 taxation years immediately following the year; and

• (3) The portion of the definition “non-capital loss” in subsection 111(8) of the Act before the description of F is replaced by the following:

  “non-capital loss”

  « perte autre qu’une perte en capital »

  “non-capital loss” of a taxpayer for a taxation year means, at any time, the amount determined by the formula

  (A + B) - (D + D.1 + D.2)

  where

  A

  is the amount determined by the formula

  E - F

  where

  E

  is the total of all amounts each of which is

  • (a) the taxpayer’s loss for the year from an office, employment, business or property,

  • (b) an amount deducted under paragraph (1)(b) or section 110.6, or deductible under any of paragraphs 110(1)(d) to (d.3), (f), (g), (j) and (k), section 112 and subsections 113(1) and 138(6), in computing the taxpayer’s taxable income for the year, or

  • (c) if that time is before the taxpayer’s eleventh following taxation year, the taxpayer’s allowable business investment loss for the year, and

• (4) Subsections (1) to (3) apply in respect of losses that arise in the 2006 and subsequent taxation years.