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Statutes of Newfoundland and Labrador 2010


CHAPTER 7

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

(Assented to June 24, 2010)

Analysis


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

††††††† 2.†† S.9 Amdt.
Personal credits

††††††† 3. S.20 R&S
Dividend tax credit

††††††† 4. S.40 Amdt.
Corporation tax

††††††† 5. 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 Section 7 of the Income Tax Act, 2000 is repealed and the following substituted: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 individualís taxable income or taxable income earned in Canada, in sections 6 to 33 referred to as the "taxable income" for the 2010 and subsequent taxation years, is

†††††††††††† (a)7.7% of the taxable income if the taxable income does not exceed $31,278;

†††††††††††† (b)$2,408 plus 12.5% of the amount by which the taxable income exceeds $31,278 and does not exceed $62,556; and

†††††††††††† (c)$6,318 plus 13.3% of the amount by which the taxable income exceeds $62,556.

†††††††††††† (2)Notwithstanding section 6.1, the amounts expressed in subsection (1) shall not be adjusted as prescribed in that section before the 2011 taxation year.

 

††††††† 2. (1) Subsection 9(2) of the Act is amended by deleting the amount "$3,482" and substituting the amount "$5,000".

†††††††††††† (2)Section 9 of the Act is amended by adding immediately after subsection (4) the following:

†††††††††††† (5)Notwithstanding section 6.1, the amount of $5,000 referred to in subsection (2) shall not be adjusted before the 2011 taxation year.

 

††††††† 3. Section 20 of the Act is repealed and the following substituted:

Dividend tax credit

††††† 20. (1) For the purpose of computing the tax payable under this Part for a taxation year by an individual who was resident in the province on the last day of the taxation year, there may be deducted an amount equal to the total of

†††††††††††† (a)5% of the total of the amount required under paragraph 82(1)(a) and subparagraph 82(1)(b)(i) of the federal Act to be included in computing the individualís income for the year; and

†††††††††††† (b)11% of the total of the amount required under paragraph 82(1)(a.1) and subparagraph 82(1)(b)(ii) of the federal Act to be included in computing the individualís income for the year.

†††††††††††† (2)Subsection (1) shall only apply to a dividend received on or after the coming into force of this section.

 

††††††† 4. (1) Paragraph 40(3)(a) of the Act is repealed and the following substituted:

†††††††††††† (a)4% of an amount calculated by allocating to the province, on the same basis as set out in the regulations made for the purpose of the definition "taxable income earned in the year in a province" in subsection 124(4) of the federal Act, a portion of the amount that is the least of the amounts calculated under paragraphs 125(1)(a), (b) and (c) of the federal Act and allowed for the purpose of subsection 125(1) of the federal Act in respect of the corporation for the year; and

†††††††††††† (2)Section 40 of the Act is amended by adding immediately after subsection (3) the following:

†††††††††††† (4)For the purpose of the 2010 and subsequent taxation years, the rate prescribed in paragraph 40(3)(a) shall apply to a corporation whose fiscal period began on or after the date that paragraph came into force.

Commencement

††††††† 5. (1) Sections 1, 2, and 3 of this Act shall come into force on July 1, 2010.

†††††††††††† (2)Section 4 of this Act shall be considered to have come into force on April 1, 2010.