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Statutes of Newfoundland 1999


CHAPTER 12

AN ACT TO AMEND THE INCOME TAX ACT

(Assented to May 27, 1999)

Analysis

1. S.4.2 Amdt.
Tax credits

2. S.4.3 Amdt.
No set off

3. S.4.4 Amdt.
When amt. applied

4. S.4.6 Added
Newfoundland and
Labrador child
tax benefit

5. S.13 Amdt.
Returns of income, assessments and
withholding

6. S.14 Amdt.
Reassessment

7. S.18 Amdt.
Returns, payments and
interest

8. S.24 Amdt.
Refunds

9. S.32 Amdt.
Regulations

10. Commencement

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


RSN1990 cI-1
as amended

1. (1) Subsection 4.2(3) of the Income Tax Act is repealed and the following substituted:

(3) Where a return of income is filed under Part I of the Federal Act for a taxation year in respect of an eligible individual and that individual has applied under subsection 122.5(3) of the Federal Act, the amount referred to in subsection (3.1) shall be considered to be an amount paid by the individual on account of the individual's tax payable under this Act for that year during the month of October of the immediately following taxation year.

(3.1) The amount referred to in subsection (3) shall be the total of

(a) the amount by which the total of

(i) $40,

(ii) $40 for a person who is the qualified relation of the individual for the year, and

(iii) the product obtained when $60 is multiplied by the number of qualified dependants of the individual for the year,

exceeds

(iv) 5% of the amount by which the individual's adjusted income for the year exceeds $15,000; and

(b) the amount by which the total of

(i) $200 for an eligible individual who is 64 years of age or over at any time in the year, and

(ii) $200 for a qualified relation who is 64 years of age or over at any time in the year,

exceeds

(iii) 2.5% of the amount by which the individual's adjusted income for the year exceeds $12,000 if either the eligible individual or the qualified relation is 64 years of age or over at any time in the year, and

(iv) 5% of the amount by which the individual's adjusted income for the year exceeds $12,000 if both the eligible individual and qualified relation are 64 years of age or over at any time in the year.

(3.2) For the purpose of subsection (3) the first year to which the return of income applies is the 1998 taxation year and the amount referred to in subsection (3.1) shall be considered to have been first paid during the month of October, 1999.

(2) Paragraph 4.2(5)(a) of the Act is amended by striking out the word and figure "subsection (3)" and substituting the word and figure "subsection (3.1)".

(3) Subsection 4.2(6) of the Act is amended by striking out the word and figure "subsection (3)" and substituting the word and figure "subsection (3.1)".

 

2. (1) Subsection 4.3(1) of the Act is amended by striking out the word and figures "subsection 4.2(3)" and substituting the word and figures "subsection 4.2(3.1)".

(2) Subsection 4.3(2) of the Act is amended by striking out the word and figures "subsection 4.2(3)" and substituting the word and figures "subsection 4.2(3.1)".

 

3. Section 4.4 of the Act is amended by striking out the word and figures "subsection 4.2(3)" and substituting the word and figures "subsection 4.2(3.1)".

4. The Act is amended by adding immediately after section 4.5 the following:

Newfoundland and Labrador child tax benefit

4.6 (1) In this section

(a) "adjusted income", "base taxation year", "cohabiting spouse", "eligible individual", "qualified dependant" and "return of income" have the meanings assigned to them under section 122.6 of the Federal Act; and

(b) "Newfoundland and Labrador child benefit" means, with respect to an eligible individual, the amount of an overpayment as calculated according to the formula prescribed under paragraph 32(1)(a.4).

(2) Notwithstanding paragraph 2(7)(h), in this section a reference to "Canada" in the definitions of "eligible individual" and "return of income", and in paragraph 122.61(3)(a) and in the preamble to subsection 122.61(3) of the Federal Act, shall not be read as a reference to Newfoundland.

(3) An overpayment in the amount of the Newfoundland and Labrador child benefit on account of an individualís liability under this Act for a taxation year is considered to have arisen during a month in relation to which the taxation year is the base taxation year, where

(a) the individual has filed a return of income for that year;

(b) if the minister demands, the cohabiting spouse, at the end of the taxation year, has filed a return of income for that year; and

(c) the individual was resident in the province immediately before and on the first day of that month.

(4) No overpayment is considered to have arisen under this section in a month before July 1, 1999.

(5) Subsection 122.61(2), paragraph 122.61(3)(a), subsection 122.61(3.1) and subsections 122.62(1), (2), (4), (5) and (6) of the Federal Act apply for the purpose of this section.

(6) A refund of an amount considered to be an overpayment under this section

(a) cannot be charged or given as security;

(b) cannot be assigned except under a prescribed Act;

(c) cannot be garnished or attached;

(d) is exempt from execution and seizure; and

(e) cannot be retained by way of deduction or set-off under the Financial Administration Act.

(7) The Minister of Finance may specify a form to be used for the purpose of this section.

5. Section 13 of the Act is amended by adding the subsection reference and comma "(1.2)," immediately after the subsection reference and comma "152(1),".

6. Subsection 14(2) of the Act is repealed and the following substituted:

(2) Notwithstanding that the normal reassessment period for a taxpayer has elapsed, the minister may redetermine the amount considered under subsection 4.2(3.1) or subsection 4.6(3) to be an amount paid by the individual on account of his or her tax payable under this Act for that year.

7. Section 18 of the Act is amended by adding the subsection reference and comma "(2.1)," immediately after the subsection references and commas "160.1(1), (1.1),".

8. Subsection 24(1) of the Act is amended by adding the subsection references and commas "(2.2), (2.3)," immediately after the subsection reference and comma "(2),".

9. Subsection 32(1) of the Act is amended by adding immediately after paragraph (a) the following:

(a.1) limiting the application of section 2 with respect to a provision of the Federal Act that applies for the purpose of section 4.6;

(a.2) respecting the interpretation of a provision of the Federal Act that applies for the purpose of section 4.6;

(a.3) prescribing an Act for the purpose of paragraph 4.6(6)(b);

(a.4) respecting the Newfoundland and Labrador child benefit, including an eligibility requirement and the manner and method of calculating the benefit;

Commencement

10. To the extent necessary to give effect to the child tax benefit, this Act shall be considered to come into force on July 1, 1999.

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