• 35. (1) Subsection 146.2(6) of the Act is amended by striking out the word “and” at the end of paragraph (a), by adding the word “and” at the end of paragraph (b) and by adding the following after paragraph (b):

  • (c) the trust’s income shall be computed without reference to subsection 104(6).

• (2) Subsection (1) applies to the 2010 and subsequent taxation years.

• 36. (1) The definition “contribution” in subsection 146.4(1) of the Act is amended by striking out “or” at the end of paragraph (b), by adding “or” at the end of paragraph (c) and by adding the following after paragraph (c):

  • (d) other than for the purposes of paragraphs (4)(f) to (h) and (n), a specified RDSP payment as defined in subsection 60.02(1).

• (2) Subsection (1) applies after June 2011.

• 37. (1) The definitions “capital gains pool”, “enduring property” and “specified gift” in subsection 149.1(1) of the Act are repealed.

• (2) The definition “disbursement quota” in subsection 149.1(1) of the Act is replaced by the following:

  “disbursement quota”

  « contingent des versements »

  “disbursement quota”, for a taxation year of a registered charity, means the amount determined by the formula

  A × B × 0.035/365

  where

  A

  is the number of days in the taxation year, and

  B

  is

  • (a) the prescribed amount for the year, in respect of all or a portion of a property owned by the charity at any time in the 24 months immediately preceding the taxation year that was not used directly in charitable activities or administration, if that amount is greater than

    • (i) if the registered charity is a charitable organization, $100,000, and

    • (ii) in any other case, $25,000, and

  • (b) in any other case, nil;

• (3) Subsection 149.1(1) of the Act is amended by adding the following in alphabetical order:

  “designated gift”

  « don déterminé »

  “designated gift” means that portion of a gift of property made in a taxation year by a particular registered charity, to another registered charity with which it does not deal at arm’s length, that is designated by the particular registered charity in its information return for the taxation year;

• (4) Paragraph 149.1(1.1)(a) of the Act is replaced by the following:

  • (a) a designated gift;

• (5) The portion of subsection 149.1(1.2) of the Act before paragraph (b) is replaced by the following:

  • Marginal note:Authority of Minister

    (1.2) For the purposes of the determination of B in the definition “disbursement quota” in subsection 149.1(1), the Minister may

    • (a) authorize a change in the number of periods chosen by a registered charity in determining the prescribed amount; and

• (6) Paragraphs 149.1(4.1)(a) and (b) of the Act are replaced by the following:

  • (a) of a registered charity, if it has entered into a transaction (including a gift to another registered charity) and it may reasonably be considered that a purpose of the transaction was to avoid or unduly delay the expenditure of amounts on charitable activities;

  • (b) of a registered charity, if it may reasonably be considered that a purpose of entering into a transaction (including the acceptance of a gift) with another registered charity to which paragraph (a) applies was to assist the other registered charity in avoiding or unduly delaying the expenditure of amounts on charitable activities;

• (7) Subsection 149.1(4.1) of the Act is amended by adding “and” at the end of paragraph (c) and by adding the following after paragraph (c):

  • (d) of a registered charity, if it has in a taxation year received a gift of property (other than a designated gift) from another registered charity with which it does not deal at arm’s length and it has expended, before the end of the next taxation year, in addition to its disbursement quota for each of those taxation years, an amount that is less than the fair market value of the property, on charitable activities carried on by it or by way of gifts made to qualified donees with which it deals at arm’s length.

• (8) Subsections 149.1(8) and (9) of the Act are replaced by the following:

  • Marginal note:Accumulation of property

    (8) A registered charity may, with the approval in writing of the Minister, accumulate property for a particular purpose, on terms and conditions and over any period of time that the Minister specifies in the approval. Any property accumulated after receipt of and in accordance with the approval, including any income earned in respect of the accumulated property, is not to be included in calculating the prescribed amount in paragraph (a) of the description of B in the definition “disbursement quota” in subsection (1) for the portion of any taxation year in the period, except to the extent that the registered charity is not in compliance with the terms and conditions of the approval.

• (9) Subparagraph 149.1(12)(b)(i) of the Act is replaced by the following:

  • (i) a designated gift,

• (10) Subsections (1) to (9) apply to taxation years that end on or after March 4, 2010.

• 38. (1) Paragraphs 152(3.1)(a) and (b) of the Act are replaced by the following:

  • (a) if at the end of the year the taxpayer is a mutual fund trust or a corporation other than a Canadian-controlled private corporation, the period that ends four years after the earlier of the day of sending of a notice of an original assessment under this Part in respect of the taxpayer for the year and the day of sending of an original notification that no tax is payable by the taxpayer for the year; and

  • (b) in any other case, the period that ends three years after the earlier of the day of sending of a notice of an original assessment under this Part in respect of the taxpayer for the year and the day of sending of an original notification that no tax is payable by the taxpayer for the year.

• (2) Subparagraph 152(4)(d)(ii) of the Act is replaced by the following:

  • (ii) the day that is 90 days after the day of sending of a notice of the provincial reassessment.

• 39. (1) Paragraph 153(1)(s) of the Act is replaced by the following:

  • (s) an amount described in paragraph 56(1)(r) or (z.2), or

• (2) Section 153 of the Act is amended by adding the following after subsection (1):

  • Marginal note:Withholding — stock option benefits

    (1.01) An amount that is deemed to have been received by a taxpayer as a benefit under or because of any of paragraphs 7(1)(a) to (d.1) is remuneration paid as a bonus for the purposes of paragraph (1)(a), except the portion, if any, of the amount that is

    • (a) deductible by the taxpayer under paragraph 110(1)(d) in computing the taxpayer’s taxable income for a taxation year;

    • (b) deemed to have been received in a taxation year as a benefit because of a disposition of securities to which subsection 7(1.1) applies; or

    • (c) determined under paragraph 110(2.1)(b) to be deductible by the taxpayer under paragraph 110(1)(d.01) in computing the taxpayer’s taxable income for a taxation year.

• (3) Section 153 of the Act is amended by adding the following after subsection (1.3):

  • Marginal note:Non-cash stock option benefit

    (1.31) An amount deemed to have been received as a benefit under or because of any of paragraphs 7(1)(a) to (d.1) shall not be considered a basis on which the Minister may determine a lesser amount under subsection (1.1) solely because it is received as a non-cash benefit.

• (4) Subsection (1) applies after 2009.

• (5) Subsection (2) applies after 2010, except that it does not apply with respect to benefits arising from rights granted before 2011 to a taxpayer under an agreement to sell or issue securities that was entered into in writing before 4:00 p.m. Eastern Standard Time, March 4, 2010 and that included, at that time, a written condition prohibiting the taxpayer from disposing of the securities acquired under the agreement for a period of time after exercise.

• (6) Subsection (3) applies after 2010.

40. Paragraph 161(11)(c) of the Act is replaced by the following:

41. Subparagraphs 161.1(3)(c)(i) to (v) of the Act are replaced by the following:

• 42. (1) Paragraphs 164(1)(a) and (b) of the Act are replaced by the following:

  • (a) may,

    • (i) before sending the notice of assessment for the year, where the taxpayer is, for any purpose of the definition “refundable investment tax credit” (as defined in subsection 127.1(2)), a qualifying corporation (as defined in that subsection) and claims in its return of income for the year to have paid an amount on account of its tax payable under this Part for the year because of subsection 127.1(1) in respect of its refundable investment tax credit (as defined in subsection 127.1(2)), refund all or part of any amount claimed in the return as an overpayment for the year, not exceeding the amount by which the total determined under paragraph (f) of the definition “refundable investment tax credit” in subsection 127.1(2) in respect of the taxpayer for the year exceeds the total determined under paragraph (g) of that definition in respect of the taxpayer for the year,

    • (ii) before sending the notice of assessment for the year, where the taxpayer is a qualified corporation (as defined in subsection 125.4(1)) or an eligible production corporation (as defined in subsection 125.5(1)) and an amount is deemed under subsection 125.4(3) or 125.5(3) to have been paid on account of its tax payable under this Part for the year, refund all or part of any amount claimed in the return as an overpayment for the year, not exceeding the total of those amounts so deemed to have been paid, and

    • (iii) on or after sending the notice of assessment for the year, refund any overpayment for the year, to the extent that the overpayment was not refunded pursuant to subparagraph (i) or (ii); and

  • (b) shall, with all due dispatch, make the refund referred to in subparagraph (a)(iii) after sending the notice of assessment if application for it is made in writing by the taxpayer within the period within which the Minister would be allowed under subsection 152(4) to assess tax payable under this Part by the taxpayer for the year if that subsection were read without reference to paragraph 152(4)(a).

• (2) The portion of subsection 164(1.5) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Exception

    (1.5) Notwithstanding subsection (1), the Minister may, on or after sending a notice of assessment for a taxation year, refund all or any portion of any overpayment of a taxpayer for the year

• (3) Subsection 164(2.3) of the Act is replaced by the following:

  • Marginal note:Form deemed to be return of income

    (2.3) For the purpose of subsection (1), where a taxpayer files the form referred to in paragraph (b) of the definition “return of income” in section 122.6 for a taxation year, the form is deemed to be a return of the taxpayer’s income for that year and a notice of assessment in respect of that return is deemed to have been sent by the Minister.

• 43. (1) Subparagraph 165(1)(a)(ii) of the Act is replaced by the following:

  • (ii) the day that is 90 days after the day of sending of the notice of assessment; and

• (2) Paragraph 165(1)(b) of the Act is replaced by the following:

  • (b) in any other case, on or before the day that is 90 days after the day of sending of the notice of assessment.

• (3) The portion of subsection 165(1.1) of the Act after paragraph (c) and before paragraph (d) is replaced by the following:

  the taxpayer may object to the assessment or determination within 90 days after the day of sending of the notice of assessment or determination, but only to the extent that the reasons for the objection can reasonably be regarded

44. Subsection 166.1(6) of the Act is replaced by the following:

45. The portion of subsection 169(1) of the Act after paragraph (b) is replaced by the following:

• 46. (1) The Act is amended by adding the following after section 180:

  PART I.01TAX IN RESPECT OF STOCK OPTION BENEFIT DEFERRAL

  Marginal note:Election — special tax and relief for deferral of stock option benefits

  • 180.01 (1) A taxpayer may make an election in prescribed form to have subsection (2) apply for a taxation year in respect of particular securities if

    • (a) the taxpayer elected to have subsection 7(8) apply, as that subsection applied before 4:00 p.m. Eastern Standard Time, March 4, 2010, in respect of the particular securities; and

    • (b) the taxpayer has, in the year and before 2015, disposed of the particular securities; and

    • (c) the election under this subsection is filed

      • (i) if the taxpayer has disposed of the particular securities before 2010, on or before the taxpayer’s filing-due date for 2010, and

      • (ii) in any other case, on or before the taxpayer’s filing-due date for the year of disposition of the particular securities.

  • Marginal note:Effect of election

    (2) If a taxpayer makes an election under subsection (1) for a taxation year in respect of particular securities, the following rules apply:

    • (a) paragraph 110(1)(d) shall be read without reference to the phrase “1/2 of” in respect of the amount of the benefit deemed by subsection 7(1) to have been received by the taxpayer in the year in respect of the particular securities;

    • (b) the taxpayer is deemed to have realized a capital gain for the year equal to the lesser of

      • (i) the amount that is deductible by the taxpayer under paragraph 110(1)(d), as modified by paragraph (a), and

      • (ii) the taxpayer’s capital loss in respect of the disposition of the particular securities;

    • (c) the taxpayer is liable to pay a tax for the year equal to

      • (i) in the case of a taxpayer resident in the Province of Quebec at the end of the year, 2/3 of the taxpayer’s proceeds of disposition (as defined in section 54, but determined without reference to subsection 73(1)) of the particular securities, and

      • (ii) in any other case, the taxpayer’s proceeds of disposition (as defined in section 54, but determined without reference to subsection 73(1)) of the particular securities;

    • (d) to the extent that the taxation year is outside the normal reassessment period (as defined in subsection 152(3.1)), the election is deemed to be an application for reassessment under subsection 152(4.2); and

    • (e) notwithstanding subsection 152(4) and as the circumstances require, the Minister shall re-determine the taxpayer’s “net capital loss” (as defined in subsection 111(8)) for the taxation year and reassess any taxation year in which an amount has been deducted under paragraph 111(1)(b).

  • Marginal note:Non-application for employment insurance purposes

    (3) An amount included under subsection (2)(b) in computing a person’s income under Part I of this Act for a taxation year shall not be included in determining the income of the person for the year under Part VII of the Employment Insurance Act.

  • Marginal note:Provisions applicable to this Part

    (4) Subsection 150(3), sections 150.1 to 152, 155 to 156.1 and 158 to 167 and Division J of Part I apply to this Part with any modifications that the circumstances require.

• (2) Subsection (1) is deemed to have come into force on March 4, 2010.