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Statutes of Newfoundland and Labrador 2010


CHAPTER 37

AN ACT TO AMEND THE INCOME TAX ACT, 2000 NO. 3

(Assented to December 16, 2010)

Analysis


††††††† 1. S.21.1 Amdt.
Low income reduction

††††††† 2. S.34 Amdt.
Harmonized sales tax credit

††††††† 3. S.38 Amdt.
Newfoundland and Labrador child tax benefit

††††††† 4. S.42 Amdt.
Research and development tax credit

††††††† 5. NLR 43/09 Amdt.

††††††† 6.†† Commencement


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. (1) Paragraph 21.1(1)(a) of the Income Tax Act, 2000 is repealed and the following substituted:

†††††††††††† (a)"adjusted income" of an individual for a taxation year means the total of all amounts, each of which would be the income for the year of the individual and the individualís qualified relation for the year, if any, within the meaning assigned by section 122.6 of the federal Act;

†††††††††††† (2)Paragraph 21.1(1)(c) is amended by adding immediately after the word "Act" a comma and the words and comma "or where a cohabitating spouse or common law partner died during the taxation year, the individualís deceased cohabitating spouse or common law partner".

 

††††††† 2. (1) Section 34 of the Act is amended by adding immediately after subsection (4) the following:

††††††††† (4.1)Notwithstanding subsections (4) and (5), if an eligible individual is a shared-custody parent, within the meaning assigned by section 122.6 of the federal Act, but with the words "qualified dependant" in that section having the meaning assigned by subsection (1), in respect of one or more qualified dependants for the year, the amount considered by subsection (4) to have been paid during the specified month is equal to the amount determined by the following formula:

1/2 ◊ (A + B)

where

††††††††††† A=the amount determined by the formula in subsection (4), calculated without reference to this subsection; and

†††††††††††† B=the amount determined by the formula in subsection (4), calculated without reference to this subsection and subparagraph (b)(ii) of the definition "eligible individual" in section 122.6 of the federal Act.

††††††††† (4.2)Subsection (4.1) applies for amounts that are considered to be paid during months after June 2011.

 

††††††† 3. Paragraph 38(1)(a) of the Act is repealed and the following substituted:

†††††††††††† (a)"adjusted income", "base taxation year", "cohabitating spouse", "eligible individual", "qualified dependant", "return of income" and "shared-custody parent" have the meanings assigned to them under section 122.6 of the federal Act; and

 

††††††† 4. (1) Paragraph 42(1)(b) of the Act is repealed and the following substituted:

†††††††††††† (b)"research and development tax credit" of a taxpayer at the end of a taxation year means the amount, equal to the total of 15% of the total of all amounts each of which is an eligible expenditure made by the taxpayer in the year, computed without reference to subsection 13(7.1) of the federal Act, and all amounts each of which is an amount included under subsection (5) or (6).

†††††††††††† (2)Subsection 42(5) of the Act is amended by striking out the reference "subparagraph (1)(b)(ii)" and substituting the reference "paragraph (1)(b)".

†††††††††††† (3)Subsection 42(6) of the Act is amended by striking out the reference "subparagraph (1)(b)(ii)" and substituting the reference "paragraph (1)(b)".

NLR 43/09 Amdt.

††††††† 5. (1) The Child and Parental Benefits Regulations are amended by adding immediately after section 5 the following:

Child benefit payment for shared-custody parent

††††† 5.1 (1) Notwithstanding section 5, if an eligible individual is a shared-custody parent in respect of one or more qualified dependants at the beginning of a month, the overpayment considered by section 5 to have arisen during the month is equal to the amount determined by the formula

1/2 ◊ (A + B)

where

††††††††††† A=the amount determined by the formula in section 5, calculated without reference to this section; and

†††††††††††† B=the amount determined by the formula in section 5, calculated without reference to this section and subparagraph (b)(ii) of the definition "eligible individual" in section 122.6 of the federal Act.

†††††††††††† (2)Subsection (1) applies for amounts that are considered to be paid during the months after June 2011.

†††††††††††† (2)The regulations are amended by adding immediately after section 6 the following:

Nutritional supplement payment for shared-custody parent

††††† 6.1 (1) Notwithstanding section 6, if an eligible individual is a shared-custody parent in respect of one or more qualified dependants at the beginning of a month, the supplementary benefit provided by section 6 for a month is equal to the amount determined by the formula

1/2 ◊ (A + B)

where

†††††††††† A =the amount provided by section 6, calculated without reference to this section, and

††††††††††† B =the amount provided by section 6, calculated without reference to this section and subparagraph (b)(ii) of the definition "eligible individual" in section 122.6 of the federal Act.

†††††††††††† (2)Subsection (1) applies for amounts that are considered to be paid during the months after June 2011.

Commencement

††††††† 6. Subsection 1(1) of this Act is considered to have come into force on January 1, 2005.