6

 

 

Fourth Session, 47th General Assembly

64 Elizabeth II, 2015

BILL 6

AN ACT TO AMEND THE INCOME TAX ACT, 2000

Received and Read the First Time.................................................................................................

Second Reading.................................................................................................................................

Committee..........................................................................................................................................

Third Reading.....................................................................................................................................

Royal Assent......................................................................................................................................

HONOURABLE ROSS WISEMAN
Minister of Finance and President of Treasury Board

Ordered to be printed by the Honourable House of Assembly

 

EXPLANATORY NOTES

This Bill would amend the Income Tax Act, 2000 to implement changes announced in Budget 2015.

The Bill would

·         create 2 new tax brackets for tax payable by an individual; and

·         increase the capital tax rate.

A BILL

AN ACT TO AMEND THE INCOME TAX ACT, 2000

Analysis


        1.    S.7 R&S
Amount of tax payable

        2.   S.66.2 Amdt.
Capital tax payable

        3.   Commencement


Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows:

SNL2000 cI-1.1
as amended

        1. Section 7 of the Income Tax Act, 2000 is repealed and the following substituted:

Amount of tax payable

        7. (1) The tax payable under this Part for a taxation year by an individual on the individual’s taxable income or taxable income earned in Canada, in sections 6 to 33 referred to as the "taxable income" for the 2015 and subsequent taxation years, is

             (a)  7.7% of the taxable income if the taxable income does not exceed $35,008;

             (b)  $2,696 plus 12.5% of the amount by which the taxable income exceeds $35,008 and does not exceed $70,015;

             (c)  $7,071 plus 13.3% of the amount by which the taxable income exceeds $70,015 and does not exceed $125,000;

             (d)  $14,384 plus 14.3% of the amount by which the taxable income exceeds $125,000 and does not exceed $175,000; and

             (e)  $21,534 plus 15.3% of the amount by which the taxable income exceeds $175,000.

             (2)  Notwithstanding section 6.1, the amounts expressed in subsection (1) shall not be adjusted as prescribed in that section before the 2016 taxation year.

 

        2. (1) Subsection 66.2(1) of the Act is repealed and the following substituted:

Capital tax payable

   66.2 (1) Every corporation that is a financial institution with a permanent establishment in the province at any time during a taxation year shall pay a tax under this Part for the year equal to 5% of the amount, if any, by which its taxable capital employed in the province for the year exceeds its capital deduction for the year.

             (2)  Section 66.2 of the Act is amended by adding immediately after subsection (3) the following:

             (4)  Notwithstanding subsection (1), a corporation's capital taxation rate for a taxation year is the total of

             (a)  that proportion of 4% that the number of days in the taxation year that are before April 1, 2015 is of the number of days in the taxation year; and

             (b)  that proportion of 5% that the number of days in the taxation year that are after March 31, 2015 is of the number of days in the taxation year.

                                   Commencement

        3. (1) Section 1 of this Act comes into force on July 1, 2015.

             (2)  Section 2 of this Act is considered to have come into force on April 1, 2015.