NEWFOUNDLAND AND LABRADOR
REGULATION 4204

Newfoundland and Labrador Child
Benefit Regulations, 2004
under the
Income Tax Act, 2000
(O.C. 2004-213)

(Filed June 1, 2004)

Under the authority of section 68 of the Income Tax Act, 2000 the Lieutenant-Governor in Council makes the following regulations.

Dated at St. John's, May 14, 2004.

Robert C. Thompson
Clerk of the Executive Council

REGULATIONS

Analysis

        1.   Short title

        2.   Definitions

        3.   Qualified dependent

        4.   Child benefit calculation

        5.   Nutritional supplement benefit

        6.   Benefit reduction calculation

        7.   Repeal

        8.   Commencement

Short title

        1. These regulations may be cited as the Newfoundland and Labrador Child Benefit Regulations, 2004.

Definitions

        2. In these regulations

             (a)  "Act" means the Income Tax Act, 2000; and

             (b)  "NLCB" means the Newfoundland and Labrador child benefit as defined in paragraph 38(1)(b) of the Act.

Qualified dependent

        3. A person who is a qualified dependent of an eligible individual on the first day of a month is a qualified dependent of that individual for that month.

Child benefit calculation

        4. The amount of the Newfoundland and Labrador child benefit that applies for a qualified dependent of an eligible individual that is considered to have arisen during a month in relation to which the year is the base taxation year is the amount of NLCB, if it is positive, calculated according to the following formula:

NLCB = 1/12[(A+B+C+D)-E]

where:

           A =  $234 for the first qualified dependent

            B =  $321 for the second qualified dependent

            C =  $345 for the third qualified dependent

           D =  $370 times the number of qualified dependents in excess of 3; and

            E =  the benefit reduction calculated under section 6

Nutritional supplement benefit

        5. An eligible individual who receives on behalf of a qualified dependent the NLCB calculated in accordance with these regulations is entitled to receive, for the 11 month period effective the first of the month following the month during which birth occurred, a supplementary benefit of $45 a month.

Benefit reduction calculation

        6. Where the adjusted income of an eligible individual for a base taxation year, in relation to a month

             (a)  is less than or equal to $17,397, the benefit reduction "E" shall equal zero; and

             (b)  is greater than $17,397, the benefit reduction "E" shall be calculated by multiplying the difference between the adjusted income and $17,397 by

                      (i)  4.68% where there is one qualified dependent,

                     (ii)  11.1% where there are 2 qualified dependents,

                    (iii)  18% where there are 3 qualified dependents, and

                    (iv)  the total of 18%, and the product obtained by multiplying the number of qualified dependents in excess of 3 by 7.4%.

Repeal

        7. The Newfoundland and Labrador Child Benefit Regulations, Newfoundland and Labrador Regulation 45/99, are repealed.

Commencement

        8. These regulations shall come into force on July 1, 2004.

©Earl G. Tucker, Queen's Printer