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St. John's, Newfoundland and Labrador, Canada

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Statutes of Newfoundland and Labrador 2007


A BILL

CHAPTER 21

AN ACT TO AMEND THE INCOME TAX ACT, 2000 NO. 2

(Assented to June 14, 2007)

Analysis


        1.   S.6.1 Added
Indexation

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

        3.   S.21.1 Amdt.
Low income reduction

        4.   S.32 R&S
Surtax

        5.   S.46.1 Added
Resort property investment tax credit

        6.   S.68 Amdt.
Regulations


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

SNL2000 cI-1.1
as amended

        1. The Income Tax Act, 2000 is amended by adding immediately after section 6 the following:

Indexation

      6.1 (1) For the purpose of calculating the tax payable by an individual for the 2007 taxation year, an amount expressed in dollars in a relevant section, except as provided in paragraphs 21.1(2)(b) and (c), shall be adjusted so that the amount referred to in the relevant section is the total of

             (a)  the amount that would be used under the relevant section for the immediately preceding taxation year; and

             (b)  the product obtained by multiplying

                      (i)  the amount referred to in paragraph (a),

by

                     (ii)  the consumer price index amount calculated for the period and by the formula prescribed by regulation.

             (2)  For the purpose of calculating the tax payable by an individual for the 2008 taxation year and subsequent taxation years an amount expressed in dollars in a relevant section shall be adjusted so that the amount referred to in the relevant section is the total of

             (a)  the amount that would be used under the relevant section for the immediately preceding taxation year before it had been rounded to a whole dollar; and

             (b)  the product obtained by multiplying

                      (i)  the amount referred to in paragraph (a),

by

                     (ii)  the consumer price index amount calculated for the period and by the formula, as prescribed by regulation.

             (3)  In this section

             (a)  "consumer price index" means the consumer price index for the province published under the Statistics Act (Canada);

             (b)  "relevant section" means section 7, 11, 12, 17.1, 32, subsections 9(1) and (2) and paragraphs 21.1(2)(b) and (c); and

             (c)  where an amount to which subsection (1) or (2) applies is not a multiple of one dollar when adjusted as provided in the subsection, it shall be rounded to the nearest dollar or if equidistant, shall be rounded to the higher dollar.

 

        2. Section 7 of the Act is repealed and the following substituted:

Amount of tax payable

        7. (1) The tax payable under this Part for the 2007 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", is

             (a)  9.64% of the taxable income if the taxable income does not exceed $29,590;

             (b)  $2,852 plus 14.98% of the amount by which the taxable income exceeds $29,590 if the taxable income exceeds $29,590 and does not exceed $59,180; and

             (c)  $7,285 plus 17.26% of the amount by which the taxable income exceeds $59,180.

             (2)  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 2008 and subsequent taxation years is

             (a)  8.7% of the taxable income if the taxable income does not exceed $29,590;

             (b)  $2,574 plus 13.8% of the amount by which the taxable income exceeds $29,590 if the taxable income exceeds $29,590 and does not exceed $59,180; and

             (c)  $6,658 plus 16.5% of the amount by which the taxable income exceeds $59,180.

 

        3. Subsection 21.1(2) of the Act is repealed and the following substituted:

             (2)  Where an eligible individual for a taxation year files a return of income under this Act, the amount, if any, by which A + B exceeds 16% of the amount, if any, by which

             (a)  the eligible individual’s adjusted income for the year;

exceeds

             (b)  $13,000; or

             (c)  where the eligible individual has a qualified relation for the year or claims an amount under paragraph 9(1)(b) for the year, $21,000,

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

          (2.1)  In subsection (2)

             (a)  A is an amount prescribed and calculated in accordance with the regulations; and

             (b)  B is an amount prescribed and calculated in accordance with the regulations where the eligible individual has a qualified relation for the year or claims an amount under paragraph 9(1)(b) for the year.

 

        4. Section 32 of the Act is repealed and the following substituted:

Surtax

      32. In addition to the income tax payable, computed in accordance with sections 6 to 31, by an individual for the 2007 taxation year, every individual shall pay a personal income surtax equal to 4.5% of the amount by which the tax computed under sections 6 to 31 for that taxation year exceeds $7,032.

 

        5. The Act is amended by adding immediately after section 46 the following:

Resort property investment tax credit

   46.1 (1) A qualifying investor, or a person acting on behalf of a qualifying investor, may apply to the minister for a non-refundable tax credit in respect of a qualifying investment in a qualifying resort development property.

             (2)  The minister may give a tax credit to a qualifying investor who applies under subsection (1) or on whose behalf an application is made under subsection (1).

             (3)  A tax credit given under subsection (2) shall be calculated in the manner prescribed by the regulations.

             (4)  A tax credit shall be deducted against the tax which is otherwise payable under this Act.

             (5)  The Lieutenant-Governor in Council may make regulations

             (a)  establishing the criteria for determining who is a qualifying investor, what property is a qualifying resort development property and what investments are qualifying investments;

             (b)  respecting the issuance of and the grounds for revocation of certificates of qualification to qualifying resort property developments;

             (c)  limiting the amounts which a qualifying resort development property may raise through the use of credits;

             (d)  prescribing how funds raised may be used by a qualifying resort property development;

             (e)  respecting the wind-up and dissolution of a qualifying tourist resort property development;

              (f)  respecting the manner of calculating the amount of a tax credit that may be paid to a qualifying investor;

             (g)  setting limits on the amounts of qualifying investments;

             (h)  respecting the carrying forward or back of a credit;

              (i)  respecting the holding period for a qualifying investment;

              (j)  prescribing penalties for failure to comply with the regulations; and

             (k)  generally to give effect to the purpose of this section.

 

        6. Subsection 68(1) of the Act is amended by adding immediately after paragraph (c.1) the following:

          (c.2)  respecting the amounts to be prescribed and calculations required for the purpose of subsection 21.1(2.1);

          (c.3)  respecting amounts, periods and formulae required for the purposes of the indexation of tax payable under section 6.1;