Statutes of Newfoundland and Labrador 2004 Chapter 19

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Statutes of Newfoundland and Labrador 2004

CHAPTER 19

AN ACT TO AMEND THE INCOME
TAX ACT, 2000, NO. 2
(Assented to June 8, 2004)

Analysis

1. S.21.1 Added
Low income reduction

2. S.34 Amdt.
Harmonized sales tax credit

3. Commencement and application

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

SNL2000 c I-1.1
as amended

1. The Income Tax Act, 2000 is amended by adding immediately after section 21 the following:

Low income reduction

21.1 (1) In this section

(a) "adjusted income" means adjusted income within the meaning of section 122.5 of the federal Act;

(b) "eligible individual" for a taxation year means an individual, other than a trust, who is resident in the province on December 31 of the taxation year and includes an individual who died during the taxation year and who was resident in the province on his or her day of death; and

(2) Where an eligible individual for a taxation year files a return of income under this Act, the amount, if any, by which the total of

(a) $416; plus

(b) $48 where the eligible individual has a qualified relation for the year or claims an amount under paragraph 9(1)(b) for the year,

exceeds

(i) the eligible individual's adjusted income for the year,

exceeds

(ii) $12,000, or

(iii) where the eligible individual has a qualified relation for the year or claims an amount under paragraph 9(1)(b) for the year, $19,000,

may be deducted from tax otherwise payable under this Act by the individual for the taxation year.

(3) Notwithstanding subsection (2), where an individual is a qualified relation of, or is an individual for whom an amount is claimed under paragraph 9(1)(b) by, another individual for a taxation year, only one of those individuals may apply under subsection (2) for the year.

(4) For the purpose of computing tax payable under this Act for a taxation year by an individual who is a qualified relation of an eligible individual who applies under subsection (2) for the year, there may be deducted an amount, if any, determined by the formula

A - B

where

A = is the amount which is deductible under subsection (2) in computing the eligible individual's tax payable under this Act for the year; and

B = is the amount that would be the eligible individual's tax payable under this Act for the year if no amount were deductible under this section

(5) Where computing an individual's tax payable under this Act, this section shall be applied last after any other tax credit sections which may apply to the computation of that individual's tax payable.

2. (1) Subparagraphs 34(4)(b)(i) and (ii) of the Act are amended by deleting the amount "$350" wherever it occurs and substituting the amount "$360".

(2) Subparagraphs 34(4)(b)(iii) and (iv) of the Act are amended by deleting the amount "$14,000" wherever it occurs and substituting the amount "$14,406".

Commencement and application

3. (1) Section 1 of this Act shall come into force on January 1, 2005.

(2) Section 2 of this Act is effective for amounts that are deemed to be paid during months specified for the 2003 and later taxation years.