Canada Gazette

These amendments implement income tax measures announced in the 2003 and 2005 budgets, as well as make technical refinements to the existing regulatory structure. The amendments are to Parts II, XLIX, L, LI, LXXIII, LXXXII, LXXXIII and LXXXV of the Income Tax Regulations (the Regulations).

Subsections 214(5) and 215(5) of the Regulations require the filing of information returns in connection with transfers from RRSPs and RRIFs. Subsection 214(5) is amended to correct an editorial error. Subsection 215(5) is amended as a consequence of a restructuring of subsection 146.3(14) of the Act. These amendments do not represent a change to existing reporting requirements.

Section 221 requires certain types of corporations and trusts to file an information return in respect of a taxation year whenever the corporation or trust makes certain claims with regard to the foreign property rule in Part XI of the Act or the eligibility of its shares or units for investment by deferred income plans. Section 221 is amended to reflect the repeal of Part XI in the Budget Implementation Act, 2005.

Part XLIX of the Regulations is amended to add a number of new types of investments to the list of qualified investments for RRSPs, RRIFs, RESPs and DPSPs and to introduce additional qualification conditions for certain existing qualified investments. Most of these amendments were previously announced by the Department of Finance on February 27, 2004.

Paragraph 4900(1)(e) of the Regulations provides that a warrant or right that gives the holder thereof the right to acquire property is a qualified investment, provided that the underlying property is a qualified investment. This paragraph is amended in several ways. First, it is amended to refer to a warrant, option or similar right. Second, it is amended to add an arm's length test whereby the issuer of the right will be required, on an on-going basis, to deal at arm's length with each person who is an annuitant, a beneficiary, an employer or a subscriber under the registered plan that holds the right. Third, the underlying property will be required to be a share or unit of (or a warrant on a share or unit of), or a debt issued by, the issuer or a person or partnership with which the issuer does not deal at arm's length. Settlement may be made either by delivery of the underlying property or by cash payment. This amendment applies in respect of property acquired after February 27, 2004.

New paragraph 4900(1)(e.01) provides that an option, warrant or similar right listed on a stock exchange referred to in section 3200 or 3201 is a qualified investment, provided that the underlying property is a qualified investment. The effect of this change is to enable RRSPs, RRIFs, RESPs and DPSPs to acquire publicly-listed put options and cash-settled index options, in addition to call options and warrants [which were already qualified investments under former paragraph 4900(1)(e)]. This amendment applies after February 27, 2004.

New paragraph 4900(1)(i.3) provides that a debt obligation issued by a Canadian corporation or a trust resident in Canada is a qualified investment, subject to the following requirements:

Paragraph 4900(1)(i.3) is intended, in particular, to accommodate investments in debt obligations (commonly referred to as asset-backed securities) that are backed by cash flows from pools of loans, leases and other receivables. Paragraph 4900(1)(i.3) applies after February 27, 2004.

Paragraph 4900(1)(j) provides that a mortgage obligation in respect of real property situated in Canada is a qualified investment. If the mortgagor does not deal at arm's length with the annuitant, beneficiary, employer or subscriber under the registered plan, the mortgage obligation qualifies only if it is insured under the National Housing Act or by an approved private insurer of mortgages.

Paragraph 4900(1)(j) is amended to reflect the fact that insured mortgage obligations are now dealt with separately under new paragraph 4900(1)(j.1). It is further amended to provide that a mortgage obligation is a qualified investment under this paragraph only if it is fully secured by the real property. If a mortgage obligation ceases to be fully secured after its issuance, it will not lose its status as a qualified investment if the fact that it is no longer so secured is due to a decline in the fair market value of the real property. This requirement applies as of January 1, 2007, for mortgage obligations acquired before February 28, 2004, and as of the date of acquisition in all other cases.

As noted above, new paragraph 4900(1)(j.1) provides that a mortgage obligation secured by real property situated in Canada, and insured either under the National Housing Act or by an approved private insurer of mortgages, is a qualified investment. This amendment, which applies after February 27, 2004, does not represent a change in policy.

New paragraph 4900(1)(j.2), which applies after 2000, provides that a certificate representing an undivided interest in one or more mortgage obligations is a qualified investment if

New paragraph 4900(1)(n.01) provides that debt of a limited partnership whose units are listed on a Canadian stock exchange referred to in section 3200 of the Regulations is a qualified investment. This amendment applies after February 27, 2004.

New paragraphs 4900(1)(t) to (v), which implement an announcement made in the 2005 budget and apply after February 22, 2005, provide that certain investments in gold and silver bullion coins, bars and certificates are qualified investments.

New paragraph 4900(1)(t) provides that a legal tender gold or silver bullion coin is a qualified investment if it has been produced by the Royal Canadian Mint, has a minimum purity of 99.5 percent for gold and 99.9 percent for silver and is acquired either directly from the Mint or from a specified corporation. In addition, the coin's fair market value must not exceed 110 percent of the fair market value of its precious metal content. This last condition applies at all times that the coin is held by the plan trust, ensuring that the coin is not held for its numismatic value.

Paragraph 4900(1)(t) defines "specified corporation" [for the purposes of paragraphs 4900(1)(t) to (v)] as a Canadian-resident corporation that is a bank, trust company, credit union, insurance corporation or registered securities dealer whose business activities are regulated by the Superintendent of Financial Institutions or a similar provincial authority.

New paragraph 4900(1)(u) provides that a gold or silver bullion bar, ingot or wafer is a qualified investment if it has a minimum purity of 99.5 percent for gold and 99.9 percent for silver, is produced by a metal refiner accredited by the London Bullion Market Association, bears the refiner's hallmark, as well as an indication of its weight and purity, and is acquired either directly from the refiner or from a specified corporation.

New paragraph 4900(1)(v) provides that a certificate issued by a specified corporation, or by the Royal Canadian Mint, representing a claim of the certificate-holder on gold or silver held by the issuer is a qualified investment if it is acquired directly from the issuer, or from another specified corporation, and the underlying gold or silver would otherwise be a qualified investment for the plan trust under paragraph 4900(1)(t) or (u).

Subsection 4901(3) contains rules regarding the interpretation, for the purpose of Part XLIX, of the expressions "mortgage" and "mortgagor." The issues dealt with in this subsection are now dealt with directly in the relevant provisions. Consequently, this subsection is repealed.

Part XI of the Act imposes a penalty tax on excess foreign property held by certain trusts and other tax-exempt entities governed by registered pension plans (RPPs) and other deferred income plans. "Foreign property" is defined in subsection 206(1) of the Act to include, except as otherwise prescribed by regulation, an interest in a partnership or trust and a share of a mutual fund corporation. Part L of the Regulations prescribes the exceptions for this purpose and includes, among other things, the specified portion of an interest in a qualified limited partnership (QLP) and an interest in a mutual fund trust or corporation that itself complies with the foreign property limit.

Part L is being repealed as a consequence of the repeal of the foreign property rules in Part XI of the Act.

Part L is also being amended, prior to its repeal, to renumber section 5001 (which prescribes a master trust for the purpose of paragraph 149(1)(o.4) of the Act) as subsection 4802(3).

Finally, Part L is being amended to reflect changes to the QLP rules that were announced in the 2003 budget and which are relevant for determining whether a partnership is, at any time after 2002 and before the repeal of Part L, a QLP.

Part LI of the Regulations contains rules to allow investments in small business by RRSPs, RRIFs, RESPs and DPSPs and to permit pension funds and other deferred income plans to increase their foreign property limit by $3 for every $1 invested in qualifying small business property.

Part LI is amended to reflect the repeal of the foreign property rules in Part XI of the Act.

Subsection 7308(4) of the Regulations sets out the prescribed factors that apply for the purposes of determining the minimum amount that an annuitant under a RRIF is required to withdraw each year from the fund. Subsection 7308(4) is amended so that the factors also apply for the purpose of determining the minimum amount in connection with variable benefits under a money purchase RPP. For more details, refer to the description in (h) below.

Section 8201 of the Regulations defines the meaning of "permanent establishment" for the purposes of various provisions in the Act. This section is amended to remove the reference to subsection 206(1.3) of the Act, as a consequence of the repeal of Part XI of the Act. It is also amended to incorporate an amendment that was previously published in the February 15, 2003 issue of Part I of the Canada Gazette adding references to various other provisions of the Act relating primarily to the taxation regime of foreign bank branches.

Amended section 8301 of the Regulations provides a mechanism to deal with excess contributions to DPSPs that can arise in certain situations. It generally allows excess contributions to be ignored for purposes of determining an individual's DPSP pension credit, for 2002 and subsequent years, provided the excess is refunded from the plan. This relieving amendment was previously announced by the Department of Finance on December 20, 2002 (News Release 2002-107). For further details refer to Appendix I of the explanatory notes to the draft income tax proposals. This release can be found at www.fin.gc.ca/news02/02-107e.html.

Section 8303 of the Regulations provides rules for determining the PSPA of an individual for a year. A PSPA arises when benefits are provided on a past service basis to an individual under a defined benefit provision of an RPP, either by upgrading existing benefits for prior years of pensionable service or by crediting additional years of pensionable service.

An individual's PSPA reduces the individual's RRSP deduction room. In some cases, past service benefits cannot be provided until the plan administrator obtains certification from the Canada Revenue Agency (CRA) that the individual has enough RRSP deduction room to support the corresponding PSPA.

In general terms, an individual's PSPA is the total of the additional pension credits that would have been determined for each past service year, if the past service benefits had been provided to the individual on a current service basis in the past service year. (Pension credits are relevant in determining PAs which, in turn, reduce RRSP deduction room.) This requires that the individual's pension credits under the defined benefit provision for each year of past service (referred to as the "pension credit year") be recalculated, taking into account the additional benefits. Subsection 8303(5) provides that, in doing these recalculations, certain benefit increases are to be excluded, thus reducing the PSPA that would otherwise be determined.

One such exclusion is that provided for in paragraph 8303(5)(f). Where the benefit formula in the RPP includes a flat benefit component, paragraph 8303(5)(f) excludes benefits arising from an increase in the flat benefit rate to the extent of the percentage increase in the average wage from the preceding year to the current year. The most common application of this exclusion would be to exclude annual benefit increases that are due to wage indexing of the defined benefit limit.

The defined benefit limit is defined in subsection 8500(1) of the Regulations as the greater of $1,722 and 1/9 of the "money purchase limit" (as defined in subsection 147.1(1) of the Act). As a result of increases to the money purchase limit announced in the 2003 and 2005 budgets, the defined benefit limit is $1,833 for 2004 and $2,000 for 2005, and is scheduled to be increased to $2,111 for 2006, $2,222 for 2007, $2,333 for 2008, $2,444 for 2009 and indexed to average wage growth thereafter.

To the extent that the increases in the average wage for the years 2004 to 2009 are less than the percentage increases in the defined benefit limit, paragraph 8303(5)(f) will not serve to fully exclude benefit increases resulting from corresponding increases in a plan's maximum pension limit. To avoid this result, new paragraph 8303(5)(f.1) is introduced to exclude these benefit increases from PSPA. This will ensure that no PSPA will be required to be reported for members whose benefits are increased simply as a result of the increases to the defined benefit limit.

New paragraph 8303(5)(f.1) also provides relief in cases where a plan sponsor delays increasing the plan's maximum pension limit to reflect increases in the defined benefit limit (including increases to the defined benefit limit for years after 2009). PSPAs, in these circumstances, will reflect only the portion of the increase in the fixed rate that is required to bring it up to the defined benefit limit for the pension credit year.

Paragraph 8303(5)(f.1) applies where the benefit formula under the defined benefit provision contains a benefit limit that is the product of (i) the individual's pensionable service and (ii) the lesser of a percentage of the individual's remuneration and a fixed rate, and the rate is increased to the defined benefit limit for the current year (or, if earlier, the year of pension commencement).

For increases after 2005, the PSPA exclusion is available only if the previous fixed rate was equal to the defined benefit limit for the year in which the rate was established. Where the fixed rate has not been adjusted annually to reflect increases in the defined benefit limit, three additional conditions apply. First, there must be more than nine active members under the provision. Second, the plan must not be a designated plan under section 8515. Finally, written approval of the application of the paragraph must be obtained from the Minister of National Revenue. Generally speaking, the Minister would give approval where, for example, the plan sponsor delayed increasing the fixed rate due to financial or collective bargaining considerations. However, the Minister would not give approval if it is reasonable to conclude that one of the reasons for the delay was to enable members to obtain RRSP deduction room that would not otherwise have been available.

A defined benefit pension plan with a 2 percent benefit accrual rate is amended in 2007 to increase the plan limit from $1,722 to the current defined benefit limit of $2,222.

Assuming that all of the conditions for the benefit exclusion in paragraph 8303(5)(f.1) to apply are met, the resulting PSPA for a high-income earner with current service accruals since the beginning of 2000 would be $7,000, determined as follows:

New paragraph 8306(1)(c.1) provides an exemption from the requirement to obtain a certification whenever the benefit exclusion in paragraph 8303(5)(f.1) is applicable in determining an individual's PSPA. Consequently, a certification is not required for the residual PSPA arising in the situation described in the example. There is no exemption from certification for past service events that occur in 2004 or 2005 if the previous fixed rate was less than $1,715.

New paragraph 8303(5)(f.2) provides a PSPA exclusion with respect to combination defined benefit/money purchase arrangements where, in order to provide room for contributions under the money purchase provision, the maximum pension limit under the defined benefit provision is set (directly or indirectly) as a fixed ratio of the current year's defined benefit limit.

Paragraph 8303(5)(f.2) is relevant in those years in which the annual increase in the defined benefit limit exceeds average wage growth (as in years 2004 to 2009) and, as a result, paragraph 8303(5)(f) would not serve to fully exclude, from PSPA, the benefit increases arising from the increase in the plan's maximum pension limit.

Paragraph 8303(5)(f.2) addresses this situation by excluding the full amount of the benefit increase from the PSPA calculation. Specifically, it excludes benefits provided as a direct consequence of an increase in the fixed rate under a defined benefit provision, if it is reasonable to conclude (i) that the value of the fixed rate is set each year as a portion of the defined benefit limit for that year, and (ii) that the ratio of the fixed rate to the defined benefit limit for years after 1989 has been, and will remain, constant. It should be noted that there does not necessarily have to be a money purchase provision established in conjunction with the defined benefit provision for this exclusion to apply. It will suffice for there to be a defined benefit provision under which the fixed rate is determined each year as a proportion of the current defined benefit limit.

The application of paragraph 8303(5)(f.2) requires the written approval of the Minister. It does not apply to plans that are designated plans under section 8515, and it generally does not apply after pension commencement.

Sections 8308.1 to 8309 of the Regulations set out rules for determining pension credits and prescribed amounts for individuals who participate in foreign pension plans and other unregistered retirement arrangements. The special transitional rules in these sections are being amended so that they cease to apply one year earlier than previously scheduled. These amendments are consequential to amendments to the Act announced in the 2003 budget, which provided for increases to the RRSP dollar limit earlier than previously scheduled. For further details, refer to Appendix A of the explanatory notes to the draft income tax proposals that were released by the Department of Finance on February 27, 2004 (News Release 2004-014). This release can be found at www.fin. gc.ca/news04/04-014e.html.

Section 8503 of the Regulations describes the benefits that may be provided under a defined benefit provision of an RPP and contains conditions that apply to a plan that has a defined benefit provision. Special rules apply to members who are employed in a public safety occupation [defined in subsection 8500(1) as the occupation of firefighter, police officer, corrections officer, commercial airline pilot and air traffic controller]. These rules generally allow those in public safety occupations to retire with an unreduced pension five years earlier than other RPP members.

Two relieving changes are being made in relation to public safety occupations. First, the occupation of paramedic is being added to the list of public safety occupations. Second, the 2.33 percent maximum pension accrual rate in paragraph 8503(3)(g) that applies for firefighters participating in RPPs that are integrated with the Canada or Quebec Pension Plan is being extended to the other public safety occupations. These changes implement measures announced in the 2005 budget and apply after 2004.

Section 8506 of the Regulations describes the benefits that may be provided under a money purchase provision of an RPP and contains conditions that apply to a plan that has a money purchase provision.

Section 8506 is amended to permit an RPP to provide retirement benefits (referred to as "variable benefits") to a member under a money purchase provision, and to beneficiaries of the member after the member's death, by means of periodic payments from the member's account. Generally, retirement benefits were previously required to be provided by means of an annuity purchased from a licensed annuities provider. These amendments are intended to allow money purchase benefits to be provided in the same manner as is permitted under a RRIF (as an alternative to the acquisition of an annuity).

The amount of variable benefits payable each year from the member's account is subject to minimum withdrawal rules, similar to those that apply to RRIFs. In general, the minimum amount for a year is the balance in the member's account at the beginning of the year, multiplied by a factor corresponding to the attained age of the member (or, on election, the member's spouse or common-law partner). The factors are set out in the table contained in amended subsection 7308(4). Variable benefits must begin to be paid no later than the year in which the member attains age 70.

Various other provisions in Part LXXXV are also amended to take into account variable benefits.

These relieving changes were announced in the 2003 budget and generally apply after 2003. For further details, refer to Appendix A of the explanatory notes to the draft income tax proposals that were released by the Department of Finance on February 27, 2004.

No alternatives were considered. These amendments implement measures announced in the 2003 and 2005 budgets and make technical refinements to the existing regulatory framework.

The RRSP and RRIF reporting changes are housekeeping in nature. The amendments to the qualified investment rules expand the investment options for deferred income plans and address technical concerns. The DPSP amendments address technical concerns. The amendments to the PSPA rules ensure that accrued pension benefits can be improved to reflect increases to the defined benefit limit without reducing the plan member's RRSP contribution room. The amendments relating to unregistered retirement arrangements and the foreign property rules are consequential on changes to the Act. The money purchase RPP amendments will allow members to choose to benefit from the flexibility that a RRIF offers without having to assume greater responsibility for investment decisions or to pay the higher investment fees typically charged on individual plans. The revenue implications associated with these amendments are expected to be minimal.

The inclusion of paramedics in the list of public safety occupations recognizes the similarities of that occupation with the occupations of firefighter and police officer in relation to physical and perceptual job capabilities that decline with age and the aim of ensuring public safety. The extension of the 2.33 percent maximum pension accrual rate will ensure consistent treatment for all public safety occupations. The revenue implications associated with these two amendments were reflected in the 2005 budget.

These amendments were developed in consultation with the Canada Revenue Agency, the Department of Justice and other interested parties.

The DPSP amendments were released in draft form, together with detailed explanatory notes, by the Department of Finance on December 20, 2002. No changes are being made to the proposed regulations as a result of this consultative process.

The changes to the provisions governing PSPAs, QLPs and money purchase RPPs were first announced in the 2003 budget. Proposed regulatory amendments to implement these budget measures and to modify the qualified investment rules were released by the Department of Finance on February 27, 2004, together with detailed explanatory notes. These regulations reflect a number of changes to the previously proposed regulations arising from consultations, which followed the February 2004 release.

Specifically, the revised qualified investment regulations relax or eliminate certain qualification conditions initially proposed in the February 2004 release.

The changes to the QLP rules (which apply only until the repeal of Part L of the Regulations) involve primarily the conditions applicable to the general partner and limited partners of a partnership. The draft regulations released in February 2004 were very specific as to how allocations to the general partner were to be determined. The revised regulations are less specific, thus giving more flexibility in determining how such allocations are to be determined. The revised regulations also impose certain conditions on the requirements for limited partners to make capital contributions to the partnership. Finally, the revised regulations further expand the list of allowable investments to include certain short-term investments in mutual fund trusts.

The changes to the PSPA rules respond to concerns that the PSPA relief initially proposed in the February 2004 release was too narrow. The revised regulations extend the proposed relief to benefit increases that occur after 2005, provided that certain additional conditions are satisfied. The revised regulations also provide relief to combination money purchase/defined benefit pension arrangements where the limit on benefits under the defined benefit component is determined by reference to a percentage of the current defined benefit limit. The PSPA amendments were also expanded to take into account the increases to the defined benefit limit announced in the 2005 budget.

The February 2004 release included a proposal that would have required earnings under a money purchase provision of an RPP to be allocated to members' accounts on at least a monthly basis, whereas the existing rules require only that allocations be made annually. The revised regulations do not contain this change. Instead, the minimum withdrawal rules for variable benefits take into account unallocated earnings.

The amendments to the qualified investment rules to allow investments in gold and silver, the foreign property amendments and the amendments relating to public safety occupations were announced in the 2005 budget.

The Income Tax Act provides the necessary compliance mechanisms for these amendments. The Act allows the Minister of National Revenue to conduct audits, to seize relevant documents and records and to assess and reassess tax, interest and penalties payable.

Dave Wurtele, Tax Legislation Division, Department of Finance, L'Esplanade Laurier, 140 O'Connor Street, Ottawa, Ontario K1A 0G5, (613) 992-4390.

Notice is hereby given that the Governor in Council, pursuant to subsection 147.1(18) (see footnote a) and section 221 (see footnote b) of the Income Tax Act (see footnote c), proposes to make the annexed Regulations Amending the Income Tax Regulations (Deferred Income Plans).

Interested persons may make representations with respect to the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to David Wurtele, Tax Legislation Division, Department of Finance, L'Esplanade Laurier, 17th Floor, East Tower, 140 O'Connor Street, Ottawa, Canada, K1A 0G5.

1. Subsection 214(5) of the Income Tax Regulations (see footnote 1) is replaced by the following:

(5) If a payment or transfer of property to which paragraph 146(16)(b) of the Act applies is made from a plan, the issuer of the plan shall make an information return in prescribed form in respect of the payment or transfer.

(5) If a transfer of an amount to which subsection 146.3(14) of the Act applies is made from a fund, the carrier of the fund shall make an information return in prescribed form in respect of the transfer.

3. The heading before section 221 of the Regulations is replaced by the following:

5. Section 4802 of the Regulations is amended by adding the following after subsection (1):

(1.1) For the purposes of paragraph 149(1)(o.4) of the Act, a trust is a master trust at any time if, at all times after it was created and before that time,

(c) it never borrowed money except where the borrowing was for a term not exceeding 90 days and it is established that the borrowing was not part of a series of loans or other transactions and repayments;

(e) each of the beneficiaries of the trust was a trust governed by a registered pension plan or a deferred profit sharing plan.

6. (1) Paragraph 4900(1)(e) of the Regulations is replaced by the following:

(e) an option, a warrant or a similar right (each of which is, in this paragraph, referred to as the "security") issued by a person or partnership (in this paragraph referred to as the "issuer") that gives the holder the right to acquire, either immediately or in the future, property all of which is a qualified investment for the plan trust or to receive a cash settlement in lieu of delivery of that property, where

(i) the property is

(A) a share of the capital stock of, a unit of, or a debt issued by, the issuer or another person or partnership that does not, when the security is issued, deal at arm's length with the issuer, or

(B) a warrant issued by the issuer or another person or partnership that does not, when the security is issued, deal at arm's length with the issuer, that gives the holder the right to acquire a share or unit described in clause (A), and

(ii) the issuer deals at arm's length with each person who is an annuitant, a beneficiary, an employer or a subscriber under the governing plan of the plan trust;

(e.01) an option, a warrant or a similar right that is listed on a stock exchange referred to in section 3200 or 3201 and that is in respect of property all of which is a qualified investment for the plan trust;

(2) Subsection 4900(1) of the Regulations is amended by adding the following after paragraph (i.2):

(i.3) a debt obligation issued by a Canadian corporation or a trust resident in Canada, where

(i) the principal purpose of the corporation or trust is to derive income from the holding of property that is

(A) a debt obligation, or a lease obligation, that arose in the ordinary course of business between parties dealing with each other at arm's length,

(B) a property described by this paragraph, or

(ii) the debt obligation has, at the time of its acquisition by the plan trust, an investment grade rating with a bond rating agency that rates debt in the ordinary course of its business, and

(iii) either

(A) the debt obligation is issued as part of a single issue of debt by the corporation or trust for a total amount of at least $25 million, or

(B) at the time the debt obligation is issued, the corporation or trust has issued and outstanding debt of at least $25 million;

(j) a debt obligation of a debtor, or an interest, or for civil law a right, in that debt obligation, where

(i) the debt obligation is fully secured by a mortgage, charge, hypothec or similar instrument in respect of real or immovable property situated in Canada, or would be fully secured were it not for a decline in the fair market value of the property after the debt obligation was issued, and

(ii) the debtor (and any person or partnership who does not deal at arm's length with the debtor) is not an annuitant, a beneficiary, an employer or a subscriber under the governing plan of the plan trust;

(j.1) a debt obligation secured by a mortgage, charge, hypothec or similar instrument in respect of real or immovable property situated in Canada, or an interest, or for civil law a right, in that debt obligation, where the debt obligation is

(i) administered by an approved lender under the National Housing Act, and

(ii) insured

(A) under the National Housing Act, or

(B) by a corporation that offers its services to the public in Canada as an insurer of mortgages or hypothecs and that is approved as a private insurer of mortgages or hypothecs by the Superintendent of Financial Institutions under subsection 6(1) of the Office of the Superintendent of Financial Institutions Act;

(j.2) a certificate evidencing an undivided interest, or for civil law an undivided right, in one or more properties, where

(i) all or substantially all of the fair market value of the certificate is attributable to property that is, or is incidental to, a debt obligation secured by a mortgage, charge, hypothec or similar instrument in respect of real or immovable property situated in Canada,

(ii) the certificate has, at the time of its acquisition by the plan trust, an investment grade rating with a bond rating agency that rates debt in the ordinary course of its business, and

(iii) the certificate is issued as part of an issue of certificates by the issuer for a total amount of at least $25 million;

(4) Subsection 4900(1) of the Regulations is amended by adding the following after paragraph (n):

(n.01) a debt issued by a limited partnership whose units are listed on a stock exchange referred to in section 3200;

(5) Subsection 4900(1) of the Regulations is amended by striking out the word "or" at the end of paragraph (r) and by adding the following after paragraph (s):

(i) that is of a minimum fineness of 995 parts per 1000 in the case of gold and 999 parts per 1000 in the case of silver,

(ii) that was produced by the Royal Canadian Mint,

(iii) that has a fair market value at the particular time not exceeding 110 per cent of the fair market value of the coin's gold or silver content, and

(iv) that is acquired by the plan trust directly from the Royal Canadian Mint or from a corporation (in paragraphs (u) and (v) referred to as a "specified corporation")

(A) that is a bank, a trust company, a credit union, an insurance corporation or a registered securities dealer,

(B) that is resident in Canada, and

(C) that is a corporation whose business activities are subject by law to the supervision of a regulating authority that is the Superintendent of Financial Institutions or a similar authority of a province;

(i) that is of a minimum fineness of 995 parts per 1000 in the case of gold and 999 parts per 1000 in the case of silver,

(ii) that was produced by a metal refiner included in the London Bullion Market Association's good delivery list of acceptable refiners for gold or silver, as the case may be,

(iii) that bears the hallmark of the metal refiner that produced it and a stamp indicating its fineness and its weight, and

(iv) that is acquired by the plan trust either directly from the metal refiner that produced it or from a specified corporation; or

(v) a certificate issued by a specified corporation or the Royal Canadian Mint representing a claim of the holder of the certificate to property held by the issuer of the certificate, where

(i) the property would be property described in paragraph (t) or (u) if those paragraphs were read without reference to subparagraphs (t)(iv) and (u)(iv), respectively, and

(ii) the certificate is acquired by the plan trust directly from the issuer of the certificate or from a specified corporation.

8. (1) Paragraph 5000(1.4)(a) of the Regulations is replaced by the following:

(i) the cost amount to the partnership of all foreign property held by it does not exceed 30 per cent of the cost amount to it of all property held by it,

(ii) the number of limited units in the partnership, each of which is held by the specified partner or by any other specified partner with whom the specified partner does not deal at arm's length, does not exceed 30 per cent of the number of limited units in the partnership held by specified partners, and

(iii) the specified partner is not a qualified limited partnership; and

(2) Paragraphs (b) to (d) of the definition "qualified limited partnership" in subsection 5000(7) of the Regulations are replaced by the following:

(b) the share of the general partner as general partner, and of the limited partners as limited partners, in any income or loss of the partnership from any source or from sources in any particular place, for any period, was determined in accordance with the written agreement governing the partnership,

(c) neither subsection 103(1) nor (1.1) of the Act has applied, and it is reasonable to consider that neither of those subsections will apply, to redetermine the share of any partner of the partnership in any income or loss of the partnership from any source or from sources in any particular place, for any period, or in any other amount in respect of any activity of the partnership that is relevant to the computation of the income or taxable income of any partner of the partnership,

(d) the interests of the limited partners were described by reference to units (in this definition referred to as "limited units") in the partnership,

(e) the amount of capital that limited partners were required to contribute to the partnership was determined by reference to the partners' limited units in the partnership, and for no such unit did the amount that was required to be contributed differ from the amount that was required to be contributed in respect of any other limited unit in the partnership, except that a limited partner may have been required to contribute an amount in excess of amounts that other limited partners were required to contribute

(i) if that excess was invested on behalf of the limited partner in specified properties, or

(ii) if that excess was contributed, either in respect of a limited unit that was acquired by the limited partner after the initial issuance of limited units by the partnership or in respect of a capital contribution made by the limited partner after a deadline for the making of the capital contribution, and it can reasonably be considered that the principal reason for the requirement to contribute the excess was to adjust for the fact that the capital contribution to which the excess relates was not previously available to the partnership including, without limiting the generality of the foregoing, adjustments for

(A) a reasonable rate of return to the partnership for the period during which the capital contribution to which the excess relates was not available to the partnership,

(B) costs incurred by the partnership before the excess was contributed,

(D) changes in the value of the property acquired by the partnership before the excess was contributed,

(e.1) the share of limited partners, as limited partners, in any income or loss of the partnership from any source or from sources in any particular place, for any period, was determined by reference to the partners' limited units in the partnership, and for no such income or loss did the share allocated in respect of any one limited unit in the partnership differ from the share allocated in respect of any other limited unit in the partnership, except that this requirement does not apply to the determination of a share of a limited partner in any particular income or loss from a specified property to the extent that the determination is reasonable in the circumstances,

(3) Subparagraph (f)(v) of the definition "qualified limited partnership" in subsection 5000(7) of the Regulations is replaced by the following:

(iv.1) limited units that the partnership acquired after 2002 in a qualified limited partnership (referred to in this subparagraph as an "investment partnership") and, if the investment partnership ceased, after that acquisition, to be a qualified limited partnership, those units are deemed to be limited units in a qualified limited partnership until the end of the third month following the month in which the cessation occurred,

(iv.2) units of a particular mutual fund trust that were

(A) acquired by the partnership after 2002 as consideration for the disposition of property (other than specified property or units of a mutual fund trust) by the partnership to the particular mutual fund trust or to an entity controlled by the particular mutual fund trust, and

(B) held by the partnership for a period not exceeding one year following the day on which the units were so acquired,

(v) specified properties, or

(4) The definition "qualified limited partnership" in subsection 5000(7) of the Regulations is amended by adding the word "and" at the end of paragraph (g), by striking out the word "and" at the end of paragraph (h) and by repealing paragraph (i).

(5) Subsection 5000(7) of the Regulations is amended by adding the following in alphabetical order:

"specified property" means property described in any of paragraphs (a), (b), (c), (f) and (g) of the definition "qualified investment" in section 204 of the Act. (bien déterminé)

10. (1) The definition "specified property" in subsection 5100(1) of the Regulations is replaced by the following:

"specified property" means property described in any of paragraphs (a), (b), (c), (f) and (g) of the definition "qualified investment" in section 204 of the Act. (bien déterminé)

(2) The portion of subsection 5100(2) of the Regulations before paragraph (a) is replaced by the following:

(2) For the purposes of this Part and clause (b)(iii)(A) of the definition "eligible investment" in subsection 204.8(1) of the Act, a small business security of a person, at any time, is property of that person that is, at that time,

(3) Paragraph 5100(2)(g) of the Regulations is amended by adding the word "or" at the end of subparagraph (i) and by repealing subparagraph (ii).

11. Subparagraph 5101(1)(b)(iv) of the Regulations is replaced by the following:

(iv) property (other than a small business security) that is

(A) a share of the capital stock of a corporation (other than a share that is issued to the corporation and that is either a share described in section 66.3 of the Act or a share in respect of which an amount has been designated under subsection 192(4) of the Act), or

(B) a put, call, warrant or other right to acquire or sell a share described by clause (A),

12. (1) The portion of subsection 5102(1) of the Regulations before paragraph (a) is replaced by the following:

5102. (1) For the purpose of this Part, a partnership is a small business investment limited partnership at any particular time if at all times after it was formed and before the particular time

(2) Subparagraph 5102(1)(f)(ii) of the Regulations is replaced by the following:

(ii) property (other than a small business security) that is

(A) a share of the capital stock of a corporation (other than a share that is issued to the partnership and that is either a share described in section 66.3 of the Act or a share in respect of which an amount has been designated under subsection 192(4) of the Act), or

(B) a put, call, warrant or other right to acquire or sell a share described by clause (A),

13. (1) The portion of subsection 5103(1) of the Regulations before paragraph (a) is replaced by the following:

5103. (1) For the purposes of this Part and subsection 259(3) of the Act, a trust is a small business investment trust at any particular time if at all times after it was created and before the particular time

(2) Subparagraph 5103(1)(d)(ii) of the Regulations is replaced by the following:

(ii) property (other than a small business security) that is

(A) a share of the capital stock of a corporation (other than a share that is issued to the trust and that is either a share described in section 66.3 of the Act or a share in respect of which an amount has been designated under subsection 192(4) of the Act), or

(B) a put, call, warrant or other right to acquire or sell a share described by clause (A),

14. The portion of subsection 7308(4) of the Regulations before the table is replaced by the following:

(4) For the purposes of the definition "minimum amount" in subsection 146.3(1) of the Act and subsection 8506(5), the prescribed factor in respect of an individual for a year in connection with a retirement income fund (other than a fund that was a qualifying retirement income fund at the beginning of the year) or the designated factor in respect of an individual for a year in connection with an account under a money purchase provision of a registered pension plan, as the case may be, is the factor, determined in accordance with the following table, that corresponds to the age in whole years (in the table referred to as "Y") attained by the individual at the beginning of the year or that would have been so attained by the individual if the individual was alive at the beginning of the year.

15. The portion of section 8201 of the Regulations before paragraph (a) is replaced by the following:

8201. For the purposes of subsection 16.1(1), the definition "outstanding debts to specified non-residents" in subsection 18(5), subsection 34.2(6), the definition "excluded income" and "excluded revenue" in subsection 95(2.5), subsections 112(2), 125.4(1) and 125.5(1), the definition "taxable supplier" in subsection 127(9), subparagraph 128.1(4)(b)(ii), paragraphs 181.3(5)(a) and 190.14(2)(b), the definition "Canadian banking business" in subsection 248(1) and paragraph 260(5)(a) of the Act, a "permanent establishment" of a person or partnership (either of whom referred to in this section as the "person") means a fixed place of business of the person, including an office, a branch, a mine, an oil well, a farm, a timberland, a factory, a workshop or a warehouse if the person has a fixed place of business and, where the person does not have any fixed place of business, the principal place at which the person's business is conducted, and

16. The definition "excluded contribution" in subsection 8300(1) of the Regulations is replaced by the following:

"excluded contribution" to a registered pension plan means an amount that is transferred to the plan in accordance with any of subsections 146(16), 146.3(14.1), 147(19), 147.3(1) to (4) and 147.3(5) to (7) of the Act; (cotisation exclue)

(2) For the purposes of subsection (1) and Part LXXXV and subsection 147(5.1) of the Act, and subject to subsection 8304(2), an individual's pension credit for a calendar year with respect to an employer under a deferred profit sharing plan is the amount determined by the formula

(a) a contribution made to the plan in the year by the employer with respect to the individual, or

(b) the portion of an amount allocated in the year to the individual that is attributable to forfeited amounts under the plan or to earnings of the plan in respect of forfeited amounts, except to the extent that the portion

B is nil, unless the conditions in subsection (2.1) are satisfied, in which case it is the total referred to in paragraph (2.1)(b).

(2.1) The following are conditions for the purpose of the description of B in subsection (2):

(a) the total of all amounts, each of which would be the individual's pension credit for the calendar year with respect to the employer under a deferred profit sharing plan if the description of B in subsection (2) were read as "is nil.", is

(i) equal to, or less than, 50% of the money purchase limit for the year,

(ii) greater than 18% of the amount that would be the individual's compensation from the employer for the year if the definition "compensation" in subsection 147.1(1) of the Act were read without reference to paragraph (b) of that definition, and

(iii) equal to, or less than, 18% of the amount that would be the individual's compensation from the employer for the preceding year if the definition "compensation" in subsection 147.1(1) of the Act were read without reference to paragraph (b) of that definition; and

(b) the total of all amounts, each of which is an amount that is paid from the plan to the individual or the employer in the calendar year or in the first two months of the following year that can reasonably be considered to derive from an amount included in the value of A in subsection (2) with respect to the individual and the employer for the year, is greater than nil.

(2) Subsection 8301(15) of the Regulations and the heading before it are replaced by the following:

(15) For the purposes of subparagraph (b)(ii) of the description of A in subsection (2), paragraph (2.1)(b) and subparagraph (4)(b)(iv), an amount transferred for the benefit of an individual from a registered pension plan or a deferred profit sharing plan directly to a registered pension plan, a registered retirement savings plan, a registered retirement income fund or a deferred profit sharing plan is deemed to be an amount that was not paid to the individual.

18. Subsection 8303(5) of the Regulations is amended by adding the following after paragraph (f):

(f.1) where the formula for determining the amount of lifetime retirement benefits payable under the provision to the individual includes a limit that is the product of the duration of the individual's pensionable service and the lesser of a percentage of the individual's remuneration and a fixed rate, and the value of the fixed rate is increased after the pension credit year to an amount equal to the defined benefit limit for the earlier of the year in which the increase occurs and the year in which retirement benefits under the provision commenced to be paid to the individual, the portion of the benefits payable as a direct consequence of the increase that would not have become provided had the value of the fixed rate been set at the defined benefit limit for the pension credit year, if

(i) the value of the fixed rate was, immediately before the increase, equal to the defined benefit limit for the year in which the value of the fixed rate was last established, and

(ii) where the year in which the value of the fixed rate was last established precedes the year immediately preceding the year in which the increase occurs,

(A) the Minister has approved in writing the application of this paragraph in respect of the past service event,

(B) there are more than nine active members (within the meaning assigned by paragraph 8306(4)(a)) under the provision, and

(f.2) where the formula for determining the amount of lifetime retirement benefits payable under the provision to the individual includes a limit that is the product of the duration of the individual's pensionable service and the lesser of a percentage of the individual's remuneration and a fixed rate the value of which can reasonably be considered to be fixed each year as a portion of the defined benefit limit for that year, benefits payable as a direct consequence of an increase, after the pension credit year, in the value of the fixed rate to reflect the defined benefit limit for the year in which the increase occurs, if

(i) except as otherwise expressly permitted by the Minister, it is reasonable to consider that, for years after 1989, the ratio of the fixed rate to the defined benefit limit has been, and will remain, constant,

(ii) the benefits are not provided as a consequence of a second or subsequent increase in the value of the fixed rate after the time that retirement benefits under the provision commenced to be paid to the individual,

(iii) the Minister has approved in writing the application of this paragraph in respect of the past service event, and

(iv) the plan is not a designated plan under section 8515,

19. Subsection 8306(1) of the Regulations is amended by striking out the word "or" at the end of paragraph (c) and by adding the following after that paragraph:

(c.1) paragraph 8303(5)(f.1) was applicable in determining the provisional PSPA of the member that is associated with the past service event; or

20. Subsection 8308.1(4.1) of the Regulations is amended by replacing the reference to "2004" with a reference to "2003" and the heading before it is amended by replacing the reference to "2003" with a reference to "2002".

21. Subsection 8308.2(2) of the Regulations is amended by replacing the reference to "2005" with a reference to "2004" and the heading before it is amended by replacing the reference to "2004" with a reference to "2003".

22. Subsection 8308.3(3.1) of the Regulations is amended by replacing the reference to "2004" with a reference to "2003" and the heading before it is amended by replacing the reference to "2003" with a reference to "2002".

23. Subsection 8309(3) of the Regulations is amended by replacing the reference to "2005" with a reference to "2004".

24. (1) The definition "lifetime retirement benefits" in subsection 8500(1) of the Regulations is replaced by the following:

"lifetime retirement benefits" provided to a member under a benefit provision of a pension plan means

(a) retirement benefits provided to the member under the provision that, after they commence to be paid, are payable to the member until the member's death, unless the benefits are commuted or payment of the benefits is suspended, and

(b) for greater certainty, retirement benefits provided to the member under the provision in accordance with paragraph 8506(1)(e.1); (prestation viagère)

(2) The definition "public safety occupation" in subsection 8500(1) of the Regulations is amended by striking out the word "or" at the end of paragraph (d), by adding the word "or" at the end of paragraph (e) and by adding the following after paragraph (e):

(3) The portion of subsection 8500(7) of the Regulations before paragraph (a) is replaced by the following:

(7) For the purposes of the definition "active member" in subsection (1), subparagraph 8503(3)(a)(v) and paragraphs 8504(7)(d), 8506(2)(c.1) and 8507(3)(a), the portion of an amount allocated to an individual at any time under a money purchase provision of a registered pension plan that is attributable to

25. (1) Paragraph 8501(1)(e) of the Regulations is replaced by the following:

(e) there is no reason to expect that the plan may become a revocable plan pursuant to subsection 147.1(8) or (9) of the Act or subsection 8503(15) or 8506(4).

(c) where the plan contains a money purchase provision, a condition set out in any of paragraphs 8506(2)(b) to (c.1) and (e) to (i).

26. (1) Subparagraph 8502(b)(iv) of the Regulations is replaced by the following:

(2) Subparagraph 8502(e)(i) of the Regulations is replaced by the following:

(i) requires that the retirement benefits of a member under each benefit provision of the plan begin to be paid not later than the end of the calendar year in which the member attains 69 years of age except that,

(A) in the case of benefits provided under a defined benefit provision, the benefits may begin to be paid at any later time that is acceptable to the Minister, if the amount of benefits (expressed on an annualized basis) payable does not exceed the amount of benefits that would be payable if payment of the benefits began at the end of the calendar year in which the member attains 69 years of age, and

(B) in the case of benefits provided under a money purchase provision in accordance with paragraph 8506(1)(e.1), the benefits may begin to be paid not later than the end of the calendar year in which the member attains 70 years of age, and

27. Subparagraph 8503(3)(g)(i) of the Regulations is replaced by the following:

(i) in the case of a member whose benefits are provided in respect of employment in a public safety occupation and for whom the formula for determining the amount of the lifetime retirement benefits can reasonably be considered to take into account public pension benefits, 2.33 per cent, and

28. (1) Subparagraph 8506(1)(a)(ii) of the Regulations is replaced by the following:

(ii) the benefits are adjusted, after they commence to be paid, where those adjustments would be in accordance with any of subparagraphs 146(3)(b)(iii) to (v) of the Act if the annuity by means of which the lifetime retirement benefits are provided were an annuity under a retirement savings plan;

(2) Subparagraph 8506(1)(c)(ii) of the Regulations is replaced by the following:

(ii) the total amount of continued retirement benefits payable under the provision for each month does not exceed the amount of retirement benefits (other than benefits permissible under paragraph (e.1)) that would have been payable under the provision for the month to the member if the member were alive;

(3) Subparagraph 8506(1)(d)(iii) of the Regulations is replaced by the following:

(iii) the total amount of survivor retirement benefits and other retirement benefits (other than benefits permissible under paragraph (e.1)) payable under the provision for each month to beneficiaries of the member does not exceed the amount of retirement benefits (other than benefits permissible under paragraph (e.1)) that would have been payable under the provision for the month to the member if the member were alive;

(4) Subsection 8506(1) of the Regulations is amended by adding the following after paragraph (e):

(e.1) retirement benefits (in this paragraph referred to as "variable benefits"), other than benefits permissible under any of paragraphs (a) to (e), provided to a member and, after the death of the member, to one or more beneficiaries of the member if

(i) the variable benefits are paid from the member's account,

(ii) the variable benefits provided to the member or a beneficiary (other than a beneficiary who is the specified beneficiary of the member in relation to the provision) are payable for a period ending no later than the end of the calendar year following the calendar year in which the member dies,

(iii) the variable benefits provided to a beneficiary who is the specified beneficiary of the member in relation to the provision are payable for a period ending no later than the end of the calendar year in which the specified beneficiary dies, and

(iv) the amount of variable benefits payable to the member and beneficiaries of the member for each calendar year is not less than the minimum amount for the member's account under the provision for the calendar year;

(5) Paragraph 8506(1)(g) of the Regulations and the heading before it are replaced by the following:

(g) the payment, with respect to one or more beneficiaries of a member, of one or more single amounts from the member's account under the provision;

(6) Subsection 8506(2) of the Regulations is amended by adding the following after paragraph (c):

(c.1) no contribution is made under the provision with respect to a member, and no amount is transferred for the benefit of a member to the provision from another benefit provision of the plan, at any time after the calendar year in which the member attains 69 years of age, other than an amount that is transferred for the benefit of the member to the provision

(i) in accordance with subsection 146.3(14.1) or 147.3(1) or (4) of the Act, or

(ii) from another benefit provision of the plan, where the amount so transferred would, if the benefit provisions were in separate registered pension plans, be in accordance with subsection 147.3(1) or (4) of the Act;

(7) Paragraphs 8506(2)(g) and (h) of the Regulations are replaced by the following:

(g) retirement benefits (other than benefits permissible under paragraph (1)(e.1)) under the provision are provided by means of annuities that are purchased from a licensed annuities provider;

(h) each single amount that is payable after the death of a member (other than a single amount that is payable after the death of the specified beneficiary of the member in relation to the provision) is paid as soon as is practicable after the member's death; and

(i) each single amount that is payable after the death of the specified beneficiary of a member in relation to the provision is paid as soon as is practicable after the specified beneficiary's death.

(8) Section 8506 of the Regulations is amended by adding the following after subsection (3):

(4) A registered pension plan that contains a money purchase provision becomes, for the purposes of paragraph 147.1(11)(c) of the Act, a revocable plan at the beginning of a calendar year if the total amount of retirement benefits (other than retirement benefits permissible under any of paragraphs (1)(a) to (e)) paid from the plan in the calendar year in respect of a member's account under the provision is less than the minimum amount for the account for the calendar year.

(5) For the purposes of paragraph (1)(e.1) and subsection (4), but subject to subsection (7), the minimum amount for a member's account under a money purchase provision of a registered pension plan for a calendar year is the amount determined by the formula

(a) if there is a specified beneficiary of the member for the year in relation to the provision, the factor designated under subsection 7308(4) for the year in respect of the specified beneficiary,

(b) if paragraph (a) does not apply for the year, the factor designated under subsection 7308(4) for the year in respect of an individual where

(i) the individual was, at the time the designation referred to in subparagraph (ii) was made, the member's spouse or common-law partner,

(ii) the member had, before the beginning of the year, provided the administrator of the plan with a written designation of the individual for the purpose of this paragraph in relation to the provision, and

(iii) the member had not, before the beginning of the year, revoked the designation, and

(6) For the purpose of the description of A in subsection (5), the balance in a member's account at the beginning of a calendar year (in this subsection referred to as the "current year") is to be determined in accordance with the following rules:

(a) the determination is to be made in a manner that reasonably reflects the fair market value of the property held in connection with the account at the beginning of the current year, including an estimate of the portion of any unallocated earnings of the plan that arose in the preceding calendar year and that can reasonably be expected to be allocated to the account in the current year; and

(b) if retirement benefits (other than benefits permissible under paragraph (1)(e.1)) provided under the provision with respect to the member had commenced to be paid before the current year and continue to be payable in the current year, the determination is to be made without regard to the value of any property held in connection with those benefits.

(7) The minimum amount for a member's account under a money purchase provision of a registered pension plan for a calendar year is nil if

(a) an individual, who is either the member or the specified beneficiary of the member for the year in relation to the provision, is alive at the beginning of the year; and

(b) that individual had not attained 69 years of age at the end of the preceding calendar year.

(8) In this section, an individual is the specified beneficiary of a member for a calendar year in relation to a money purchase provision of a registered pension plan if

(b) the individual is a beneficiary of the member and was, immediately before the member's death, the member's spouse or common-law partner; and

(c) the member or the member's legal representative had, before the beginning of the year, provided the administrator of the plan with a written designation of the individual (and of no other individual) as the specified beneficiary of the member for the calendar year in relation to the provision.

29. Subsection 8509(12) of the Regulations is amended by replacing the reference to "2004" with a reference to "2003" and the heading before it is amended by replacing the reference to "2003" with a reference to "2002".

(2) Sections 2, 14 and 16, subsections 24(1) and (3) and sections 25, 26 and 28 apply after 2003, except that, in respect of retirement benefits provided under a money purchase provision under an arrangement that was accepted for the purpose of paragraph 8506(2)(g) of the Regulations before February 27, 2004,

(a) subparagraph 8506(1)(a)(ii) of the Regulations, as enacted by subsection 28(1), is to be read as follows:

(b) paragraph 8506(2)(g) of the Regulations, as enacted by subsection 28(7), is to be read as follows:

(g) retirement benefits (other than benefits permissible under paragraph (1)(e.1)) under the provision are provided by means of annuities that are purchased from a licensed annuities provider or under an arrangement acceptable to the Minister;

(3) Sections 3 to 5 and 9, subsections 10(1), (3) and (4) and sections 11 to 13 come into force only if Bill C-43, introduced in the 1st session of the 38th Parliament and entitled the Budget Implementation Act, 2005 (in this section referred to as the "amending Act"), receives royal assent, in which case those sections and subsections come into force, or are deemed to have come into force, on the day on which it is assented to.

(4) Paragraph 4900(1)(e) of the Regulations, as enacted by subsection 6(1), applies to property acquired after February 27, 2004.

(5) Paragraph 4900(1)(e.01) of the Regulations, as enacted by subsection 6(1), subsection 6(2), paragraph 4900(1)(j.1) of the Regulations, as enacted by subsection 6(3), and subsection 6(4) apply after February 27, 2004.

(6) Paragraph 4900(1)(j) of the Regulations, as enacted by subsection 6(3), applies

(a) in respect of property acquired after February 27, 2004, after February 27, 2004; and

(7) Paragraph 4900(1)(j.2) of the Regulations, as enacted by subsection 6(3), applies after 2000.

(9) Sections 7 and 30 come into force on the day on which these Regulations are published in Part II of the Canada Gazette.

(11) Subsections 8(2) to (4) apply for the purpose of determining if a partnership is, at any time after 2002, a qualified limited partnership.

(12) Subsection 10(2) comes into force only if the amending Act receives royal assent, in which case that subsection applies to taxation years that begin after 2004.

(13) Section 15 is deemed to have come into force on October 2, 1996, except that in applying section 8201 of the Regulations, as enacted by section 15,

(a) to the 1996 taxation year, it is to be read without reference to the phrase "the definition "outstanding debts to specified non-residents" in subsection 18(5),";

(b) to taxation years that ended before November 1997, it is to be read without reference to subsection 125.5(1) of the Income Tax Act;

(c) to taxation years that began before 1996, it is to be read without reference to the phrase "the definition "taxable supplier" in subsection 127(9),";

(d) to taxation years that ended before June 28, 1999, it is to be read without reference to the phrases "paragraph 181.3(5)(a) and 190.14(2)(b)," and "the definition "Canadian banking business" in subsection 248(1)";

(e) to taxation years that began before 2000, it is to be read without reference to the phrase "the definition "excluded income" and "excluded revenue" in subsection 95(2.5)"; and

(f) to taxation years that end before the day on which the amending Act is assented to, it is to be read as though it also applies for the purpose of subsection 206(1.3) of the Income Tax Act.

(14) Section 17 applies to the determination of pension credits for the 2002 and subsequent calendar years.

(15) Section 18 applies in respect of past service events that occur after 2003, except that in its application in respect of past service events that occur before 2006, paragraph 8303(5)(f.1), as enacted by section 18, is to be read without reference to its subparagraphs (i) and (ii).

(16) Section 19 applies in respect of past service events that occur after 2005. It also applies in respect of past service events that occur after 2003 and before 2006 if the value of the fixed rate immediately before the past service event was equal to or greater than $1,715.